Urgent Compliance Alert for E-Commerce Sellers - ACP JAPAN - Attorney for Customs Procedures

As previously mentioned in another article (“Announcement from Japan Customs | Mandatory to use ACP in Many Cases – Attorney for Customs Procedure”),

since October 2023, overseas sellers (especially those selling via e-commerce platforms such as Amazon, Rakuten, and Shopify) are required to act as the Importer of Record (IOR) themselves by appointing an Attorney for Customs Procedures (ACP).

Under this revised system, using another Japanese company as a nominal importer is no longer permitted.
Nevertheless, we continue to observe cases in which certain entities provide IOR name-lending services that are not legally recognized under Japanese law.
Such practices have become widespread, prompting us to issue this notice as a compliance warning.

Sellers operating in Japan are expected to understand Japan’s legal framework correctly.

Problematic Practices – Violation of Customs Laws

Some entities fabricate documents, such as invoices, to make it appear as though a sale occurs between the overseas seller and the Japanese IOR, when in fact the declared import price is set extremely low—often close to manufacturing cost.
Even if a formal sale exists, when the IOR temporarily “purchases” the goods at import and immediately resells them back, such an IOR cannot be regarded as a genuine importer under Japanese law.

In many cases, products are not shipped directly to Amazon’s fulfillment centers but are first sent to domestic warehouses for relabeling or repackaging before re-shipment.
Import documents often omit any mention of the e-commerce warehouse, and the products themselves bear no e-commerce identifiers.
This arrangement is designed to avoid customs scrutiny regarding valuation methods (e.g., customs valuation based on domestic retail price), and thus constitutes a non-compliant import practice.

Legal Risks and Liabilities

When imports are declared with undervalued invoices or in violation of import regulations, even if customs clearance is initially granted, post-clearance audits by Japan Customs may result in substantial additional duties and penalties.
Legally, the IOR bears responsibility for such liabilities. However, if the overseas seller is the true economic beneficiary, disputes between the overseas seller and the nominal IOR are almost inevitable.

When the overseas seller avoids all import-related taxes and leaves all handling to the IOR, the IOR effectively assumes the legal and financial risk.
While some IOR service providers may claim this is a legitimate business model, in reality such practices undermine Japan’s legal integrity and fair market environment, prioritizing short-term profit over compliance and responsible trade.

Impact on Fair Market Competition

Products imported through improper schemes often appear at unrealistically low prices on platforms like Amazon.
This places legitimate sellers—who properly pay import duties and consumption tax—at a competitive disadvantage, eroding fair and transparent market conditions.
It was precisely this issue that led to Japan’s customs system reform in October 2023, which clarified the concept of the “substantive importer” and reinforced the ACP framework.

While overseas sellers who unknowingly rely on unlawful schemes also bear some responsibility, the primary accountability lies with IOR providers who knowingly engage in these practices.

Low-compliance businesses often violate not only customs valuation rules but also intellectual property, consumer safety, and tax laws, indicating broader systemic non-compliance.

Message from ACP JAPAN

At ACP JAPAN, we assist overseas sellers establish fully compliant import structures in Japan through the ACP (Attorney for Customs Procedures) system.
To build a sustainable and trustworthy business in the Japanese market, we strongly encourage overseas sellers to act as the true importer—not through nominal name-lending schemes, but under a legitimate and transparent framework in accordance with Japanese law.

Concerns Over Cost Impact of Customs Valuation/Import Declarations

When overseas sellers import goods for e-commerce into Japan, whether through ACP or as the another IOR company, there is no “import transaction” with a Japanese buyer, leading to the exceptional determination method for declared import values, typically based on the domestic selling price.

There are concerns about high valuation leading to excessive duties and taxes. However, this is a determination method based on the Customs Tariff Law, which must be adhered to. The cost impact of the valuation is not as significant as often feared.

The taxes on import are mainly customs duties and consumption tax. Japan’s import tariffs are relatively low on a global scale, and many industrial products are duty-free. As for consumption tax, which is a uniform 10%, it is an indirect tax borne by the final consumer, not a cost for the overseas seller. Taxable businesses regularly file consumption tax returns to the tax office, adjusting the tax paid on imports against the tax collected from sales, neutralizing the cost impact. However, this necessitates that the overseas business itself becomes the importer, achievable only through using ACP.

With the start of the consumption tax invoice system in October 2023, many overseas businesses might have registered as qualified invoice-issuing entity. For B2C businesses, registration as a qualified invoice-issuing entity is not always necessary, but many companies seem to register without fully understanding the system. I recommend that overseas businesses seek advice from qualified professionals to navigate these changes correctly.

As seasoned experts in customs and trade facilitation, we at ACP JAPAN are here to navigate these complexities on your behalf. Our approach, grounded in professionalism and profound regulatory knowledge, ensures a seamless, compliant, and strategic entry into Japan’s vibrant market.

We invite you to reach out to us — let’s discuss how we can support your business’s successful and compliant expansion into Japan. Your peace of mind is our top priority.

We look forward to your inquiry!

Our ACP Service: The Best Solution for the Japan Importer of Record (IOR) and Exporter of Record (EOR)

Attorney for Customs Procedures (ACP) is the best solution for addressing the issue of Japan IOR – Importer of Record. Below is an outline of our primary services and a diagram illustrating the operational structure of the ACP service. Upon successful ACP registration, a foreign entity can become the Japan IOR – Importer of Record.

Basic Scope of Services:

Consultation with the Japan Customs Office for successful ACP registration.
Liaising with stakeholders, including Logistics Forwarding Companies and the Customs Offices, on behalf of non-resident clients (i.e., non-resident Japan IOR) to ensure the secure importation of goods.
Assistance in preparing the necessary documentation for import clearance.
Support of calculation of Customs Value (Customs Valuation Formula), in accordance with appropriate compliance under the Japan Tariff Customs Law.
Security Export Control (Classification for List Control, Examination for Catch-All Control, Application of the license to Ministry of Economy, Trade and Industry)
Documents keeping, required under article 95 – Japan Customs Law
Providing professional trade/customs advice if any issues arise.

**Both import and export activities can benefit from the use of an ACP (Attorney for Customs Procedures). This support is applicable in scenarios where a non-resident acts as the Importer of Record (IOR) for imports and as the Exporter of Record (EOR) for exports.

Three Steps to Initiate Shipments Under the ACP Program: :

Quotation Review to Contract Conclusion: Upon receiving your contact details, we will promptly provide a quotation for your review.
Commencing the Registration of ACP (Attorney for Customs Procedure) to Japan Customs: This process is generally completed in about two weeks.
Initiation of First Shipment, Import/Export

Track Record – Attorney for Customs Procedures (ACP) Services

We have supported import and export operations in Japan for over 200 clients across more than 40 countries.

Examples of International Logistics Partners We Have Worked With

We have a proven track record of working with a wide range of logistics providers. As the Attorney for Customs Procedures (ACP), we handle customs-related responsibilities while logistics companies manage transportation and warehousing operations.

Apex International
Brink’s
CEVA Logistics
Crane Worldwide Logistics
DB Shenker
DGX（Dependable Global Express）
DHL Express
DHL Global Forwarding
Dimerco
DSV Air & Sea
Expeditors
FedEx Express
FERCAM
Harumigumi
Herport
ICL Logistics
JAS Forwarding
Kintetsu Express
Kokusai Express
Kuehne + Nagel
Mitsubishi Logistics
MOL Logistics
Nankai Express
Nippon Express
OIA Global
PGS
Rhenus Group
Röhlig
Sankyu
Sanyo Logistics
Scan Global Logistics
Seino Schenker
SEKO Logistics
Shin-Ei gumi
Sumitomo Warehouse
UPS
UPS Supply Chain Solutions
Yamato Transport

…and many other logistics providers in Japan and around the world.

Why choose us?

We specialize in navigating complex issues at the intersection of customs procedures and taxation—an area where our ability to offer practical, comprehensive support from both perspectives sets us apart. Understanding the close relationship between customs duties and national taxes (especially, Japan Consumption Tax – JCT), and addressing both in an integrated manner, is crucial in the context of international trade.

Customs and International Trade Professionals – Led by our CEO, Mr. Sawada—Certified Customs Specialist and former KPMG professional—ACP JAPAN provides expert-level support in Customs and international trade.
Full Compliance with Japanese Customs Law – We ensure full adherence to Japanese Customs Law, including Importer of Record (IOR) structure, HS code classification, and customs valuation. We assist in preparing all essential shipping documents for non-resident entities.
One-Stop Support for ACP and JCT Tax Representative Services – In collaboration with trusted partner tax accountants, we provide comprehensive support for both customs procedures through the Attorney for Customs Procedures (ACP) and Japan Consumption Tax (JCT) filings through the JCT Tax Representative.
Multilingual Communication – Our team communicates fluently in English, Japanese, and Chinese, offering smooth coordination with global clients and authorities in Japan.
Support for Regulated Products – Our ACP/IOR partnership system can manage regulated items, including cosmetics, PSE-products, foodstuffs, and tableware.
Trusted by Global Clients – Serving around 100 ACP clients annually, including many Amazon sellers, we’re a certified provider on Amazon SPN (Service Provider Network) under Trade Compliance.

Please Be Careful

In cases where foreign corporations (non-residents) without an office in Japan import goods, failure to properly prepare an Importer of Record (IOR) through an Attorney for Customs Procedures (ACP) or similar means can result in goods being held at customs, leading to significant delays and costs. To avoid such risks, please make thorough preparations.

If an ACP is needed, it is crucial to utilize the services of an experienced ACP well-versed in customs-related laws and regulations. The import and export operations of non-residents/foreign corporations using an ACP are treated as unique cases. Many customs brokers are not familiar with these procedures, leading to incidents where goods are detained for extended periods due to unsuccessful explanations to customs. (Customs will not permit the import if the explanations provided by the importer or customs broker are unsatisfactory, resulting in the goods being detained until customs is convinced.)

We highly recommend utilizing our services as professional experts in customs, knowledgeable about customs-related laws and regulations. With a proven track record of resolving numerous issues through direct consultations with customs officers and customs brokers, our clients supported as an ACP now exceed 200 companies. We are committed to delivering industry-leading results with our expertise.

FAQ for ACP (Attorney for Customs Procedures)

What is the role of ACP (ACP Japan)?

Representation: ACP (ACP Japan) represents the foreign importer and liaises with Japan Customs and the Forwarding Company/Customs Broker.
Documentation and Compliance: ACP assists in preparing essential import documents (e.g., Invoices) in compliance with Japan Customs Law and formally requests the Customs Broker to proceed with customs clearance.
Expert Consultation and Troubleshooting: We are a team of legal experts in Customs Laws, providing direct consultations with Japan Customs to ensure compliance and address issues, including troubleshooting unique challenges in non-resident imports.

How long time does it require to get ACP’s registration?

It will take approximately 2 weeks until getting an approval from Japan Customs Office.
The breakdown of the task is as follows.

Prepare the necessary documentation between us
Start pre-consultation with Japan Customs Office and proceed initial review
Submit paper-based set of application documents to Japan Customs Office for final review

What kind of documents to be necessary for ACP application?

Not limited, but for instance – Power of Attorney, Company Registry, The calculation method of Customs Valuation, Catalog of the import goods, business/logistic flow

ACP can handle all kinds of goods?

Whereas many ACP service providers do not handle regulated items, our company’s competitive advantage stems from our ability to manage such products. We can support regulated items, including cosmetics, PSE-regulated products, foodstuffs, and tableware.