Ranked as Indonesia’s third-largest trading partner, Japan accounted for JP¥296 billion worth of the country’s exports. With the large economic size and market potential of Japan, many Indonesian businesses are eager to start exporting their products there. However, before diving into the Japanese market, it is important for businesses to understand the country’s trade regulations and policies. In this article, we will give an overview of what businesses need to know about exporting to Japan.
Trade regulations in Japan
Businesses exporting to Japan should be aware of the country’s import restrictions. These are measures taken by the Japanese government in order to protect its domestic industries and market. As such, businesses should check if their products are subject to any rules and regulations before attempting to export them. Do note that all imported goods into Japan must be declared at customs.
Here are some other things to take note of:
1. Be familiar with Japan’s prohibited and restricted items
A good way to find out if your product is restricted is by using the Japan Customs website. On the site, you can search for your product’s HS code (a six-digit code used to classify traded goods) to determine its status as a restricted or prohibited item. If your product is classified as a restricted item, you will need to obtain an import licence, while for prohibited items, businesses are not allowed to import them into the country.
Certain goods such as firearms, explosives, and pornography cannot be imported into Japan. In addition, medical items, agricultural products, and chemicals are placed under the restricted items category.
In that context, there are also goods that are deemed to have a 'negative impact' by the Japanese government and are thus, subject to special regulations. These items include ivory, products made from CITES-listed endangered animals or plants, as well as medications that last for more than two months. As such, businesses should seek for approval and apply for the required permits before attempting to import such goods.
It is also important to know the type of delivery services required for the type of products you are exporting. For example, there is a very strict requirement when it comes to shipping liquid overseas. Ensuring your business has met these guidelines will ensure a smoother export experience and reduce the chances of your exports being delayed due to customs regulation issues.
2. Product safety and labelling
Another important consideration to take note of would be product safety and labelling requirements. For example, food and beverages exported to Japan must comply with the country’s Food Sanitation Act. This law requires that all imported food products meet certain standards in terms of hygiene and labelling. Also, all products exported to Japan must have the country of origin displayed, if not the product will be deemed as non-compliant and will not be allowed to enter the country. As such, it is vital that businesses ensure that their products are properly labelled before exporting them.
3. Check for applicable tariffs and taxes
Imported goods are generally subjected to duties and tariffs depending on their country of origin. This information can be found on Japan’s Customs Tariff Schedule, where several tax rates are listed for each foreign country or region.
Furthermore, Japan has a Generalised System of Preferences (GSP) that includes a list of beneficiary countries and products. Under the GSP, beneficiaries get to enjoy preferential tariff rates and duties. These preferential tax rates usually apply to countries that share free trade agreements or economic partnerships with Japan.
