Bangladesh has made significant strides in its export market by aligning its high-quality ready-made garments, textiles, and frozen seafood with the preferences of Japanese consumers. According to OEC World, Bangladesh exported US$1.69 billion worth of products to Japan in 2022, marking a notable growth in trade relations. Over the past five years, exports from Bangladesh to Japan have grown at an impressive annualized rate of 7.97%, rising from US$1.15 billion in 2017 to US$1.69 billion in 20221.
However, despite the significant growth in exports, Bangladesh has yet to fully tap into its trade potential with Japan2. Many items show a gap between actual and potential export values, highlighting opportunities to increase their supply to the Japanese market.
This guide offers a comprehensive roadmap on how Bangladeshi businesses can export products to Japan and capitalize on these opportunities.
Product selection & market research: catering to Japanese preferences
Entering the Japanese market hinges on selecting the right import items that align with consumer demand and consumer behavior.
Here are some of the leading products for exporting to Japan and why you should ship them:
- Ready-made garments (RMG): Ready-made garments (RMG) and apparel are the leading Japanese imported items from Bangladesh. Over the years, Bangladesh's exports of RMG products to Japan have steadily increased, now making up approximately 83% of the country’s total exports3 to the Japanese market.
- Textiles: As the second-largest textile producer in the world, Bangladesh is known for its high-quality and diverse offerings, ranging from yarn to woven fabrics. With over 4 million people employed and a 10% contribution to its GDP4, the sector forms a vital part of the economy. These textiles are particularly well-suited for the Japanese market, where consumers highly value craftsmanship, quality, and attention to detail.
- Leather goods: Bangladesh's leather and leather products are the country’s second-largest export sector. In 2023, the industry recorded exports worth US$1,107.35 million5, reflecting a 16.02% decline compared to 2022. Despite this downturn, the Japanese market presents a valuable opportunity for Bangladeshi leather goods, thanks to its appreciation for craftsmanship and durability. High-quality products such as footwear, bags, and accessories align with Japanese consumer preferences, offering significant potential for growth in this niche market.
- Frozen seafood: Bangladesh boasts a thriving seafood industry, with US$17.38 billion in revenues in 20236. Frozen shrimp, in particular, enjoys strong demand in Japan. Maintaining stringent quality control and adhering to Japanese food safety standards are essential for sustained success.
- Agricultural products: The global demand for Bangladesh's agricultural products is projected to grow by 15% between 2019 and 20287, creating significant opportunities for the country's processed food industry to expand its exports. Exploring the export potential of agricultural products like jute, tea, and specialized vegetables to Japan can further diversify Bangladesh's export product portfolio and cater to specific niches in the Japanese market.
Understanding Japanese consumer behavior
Japanese consumers are known for their discerning tastes and emphasis on quality, making it vital for exporters to understand their unique preferences and cultural nuances. Here are the factors to consider before exporting:
- Premium quality: Japanese consumers are known to value products that emphasize quality and durability, often showing a preference for items designed with longevity and functionality in mind.
- Brand perception: A solid brand reputation is crucial when exporting to Japan. Consistency in quality, reliable service, and effective branding contribute to cultivating trust and loyalty among Japanese consumers.
- Aesthetic appeal: Presentation matters. Japanese consumers value meticulous packaging for exported items, which may influence purchasing decisions and brand perception.
- Cultural sensitivity: Understanding and respecting Japanese business etiquette, communication styles, and cultural preferences plays a significant role in building trust and long-term relationships. For Bangladeshi exporters, demonstrating cultural sensitivity can set them apart in a competitive market, as it shows commitment to aligning with Japanese values.
Navigating the export landscape: regulations and compliance
Entering the Japanese market requires a thorough understanding of export regulations and compliance standards to ensure a seamless process. Take a look at the following guidelines on how to ship to Japan in terms of the documents required for export, regulations, and tariffs.
Essential documentation
Accurate documentation is the foundation of successful exporting. Some of the required documents to take note of include:
- Commercial Invoice: A detailed invoice outlining the transaction, including product descriptions, quantities, prices, and terms of sale.
- Packing List: A detailed list of the contents of each package, including weight, dimensions, and markings.
- Certificate of Origin: This document certifies the origin of the goods, ensuring they qualify for preferential tariff treatment under Japan's Generalized System of Preferences (GSP).
- Import Permit/License: Certain items may require specific import permits or licenses from Japanese authorities. Conducting thorough research and obtaining necessary permits in advance is crucial.
Compliance with regulations
Compliance with Bangladeshi and Japanese customs regulations is essential to ensure a smooth export customs clearance process. Adhering to the legal requirements of each country not only prevents costly delays and penalties and builds trust with importers and authorities.
- Bangladeshi export regulations: Exporters must be well-versed in all relevant export regulations and customs clearance processes in Bangladesh, including obtaining necessary export permits and complying with foreign exchange regulations.
- Japanese import regulations: A thorough understanding of Japanese import regulations is essential. This includes tariff classifications for exported items, labeling requirements, product safety standards, and other relevant legislation. The Japan External Trade Organization8 (JETRO) offers valuable resources and guidance on navigating these regulations.
Tariff and non-tariff barriers
Japan’s Generalized System of Preferences9 (GSP) offers reduced tariffs on select imported items from developing countries to promote industrialization and economic growth. Established in 1971, the GSP designates eligible countries, products, and duty rates under the Temporary Tariff Measures Law.
Products under Japan’s GSP are categorized into agricultural/fishery and industrial goods. Agricultural products have specific items with preferential rates, while most industrial goods are duty-free, except for sensitive items such as leather clothing and footwear. Least Developed Countries (LDCs) benefit from duty-free, quota-free (DFQF) access.
Bangladesh, which gained significant DFQF access to Japan in 2007, currently enjoys duty-free status10. Key exports benefiting from this treatment include raw hides, skins, leather, and textile products.
Packaging & labeling: Meeting Japanese standards
Packaging and labeling serve a dual purpose: protecting goods during transit and meeting stringent Japanese market requirements. Below are some guidelines on packaging for export best practices:
Protective packaging
Ensuring proper packaging for shipping is critical to protecting goods during transit. As such, it’s crucial to take note of the following best practices when exporting to Japan:
- Durable materials: Use strong packaging materials like corrugated cardboard, foam, or bubble wrap to protect goods during transit.
- Temperature control: Use insulated containers and cooling elements for sensitive items, such as frozen seafood.
- Handling labels: Clearly mark packages with instructions like "Fragile" or "Handle with Care" to prevent damage.
- Product-specific requirements: Follow weight restrictions and stacking guidelines for different product categories to meet shipping standards.
Labeling compliance
Labeling in the Japanese market is strictly regulated and must comply with the Japanese Industrial Standards (JIS). Labels are required to provide clear and accurate information in Japanese, including the product name, origin, composition, and usage instructions. Additional details such as nutritional content, allergens, and expiration dates are mandatory for food items.
Carefully reviewing and adhering to the latest JIS requirements when preparing Bangladesh export products for the Japanese market is also crucial. In August 2024, the JIS L 0001: 2024 for Textiles – Care Labelling Code Using Symbols was introduced to align with the ISO 3758: 2023 standards. This update prompted revisions to the Japan Household Goods Quality Labeling Act and the Textile Goods Labeling Regulation to ensure consistency across labeling requirements11.
Logistics and shipping: efficient and reliable delivery
Selecting the optimal international shipping solution is crucial for timely and cost-effective delivery to Japan. Here are ways you can send imported items to Japan:
- Air freight: Best suited for time-sensitive or high-value goods, air freight offers the fastest delivery but typically comes at a higher cost.
- Sea freight: A more cost-effective option for larger shipments, sea freight is suitable for products where longer transit times are acceptable.
- Express delivery: International logistics service providers like DHL Express provide a balance of speed and cost-effectiveness, particularly for smaller shipments requiring door-to-door delivery and expedited customs clearance.
DHL Express: your international shipping partner
As the global leader in logistics and overseas shipping, we at DHL Express provide reliable shipping solutions tailored to the needs of exporters from Bangladesh to Japan. Our extensive global network ensures seamless connectivity and timely deliveries, supported by comprehensive tracking capabilities.
With our expertise in navigating complex procedures when exporting to Japan, we help minimize delays and ensure efficient clearance. We also offer customized shipping solutions for various industries and product types, ensuring your goods are delivered securely to their destination.
Navigate overseas shipping with DHL Express
The Japan and Bangladesh trade relations provide significant opportunities for Bangladeshi exporters, supported by duty-free access under the GSP and the Economic Partnership Agreement (EPA). By understanding consumer preferences, ensuring compliance, and partnering with reliable international logistics service providers, businesses can easily navigate the shipping process to Japan.
Start your journey confidently by signing up for a DHL Express Business Account today.
2. The untapped potential of Bangladesh-Japan trade
3. The untapped potential of Bangladesh-Japan trade
4. Can India’s garments industry benefit from Bangladesh’s turmoil?
5. Look back at 2023 for understanding Bangladesh’s leather sector performance
6. Bangladesh International Aquaculture & Seafood Show 2004
8. Japan External Trade Organization
10. Embassy of the People’s Republic of Bangladesh Bangkok
11. Japan – Revision of JIS L 0001 : 2024