Japan

Japan is the world’s 4th largest economy (by nominal GDP) and a global leader in technology, automotive manufacturing, and advanced consumer markets. With a population of about 124 million people, Japan is one of the most mature ecommerce markets globally, supported by a sophisticated logistics infrastructure and high consumer purchasing power. The Organisation for Economic Co-operation and Development (OECD) comparative price level is around 117, meaning Japanese consumers pay on average 17% more than Americans for the same product – placing Japan firmly among the world’s high-value ecommerce destinations.

Key info

• Country code (ISO 3166-1 alpha-2): JP
• Country code top-level domain (ccTLD): .jp
• Currency (ISO4217): Japanese Yen JPY
• World Trade Organization (WTO) Status: Member

Duty information

Japan applies tariffs under the Customs Tariff Law, administered by Japan Customs.

• Most Favored Nation (MFN) ad valorem duty rates generally range from 0% to 30%, depending on the product (higher on agricultural products, textiles, and footwear).
• Many industrial inputs, IT products, and raw materials are duty-free.
• Duty is calculated on the CIF value - the value of goods, shipping and insurance combined.

Sales tax

Japan applies a Consumption Tax (similar to VAT/GST) on domestic and imported goods:

• Standard rate: 10%
• Reduced rate: 8% (applies to food, beverages, and newspapers; excludes alcohol and dining out)
• Consumption tax on imports is calculated on the value of goods + duty + shipping/insurance.

Additional taxes & charges

• Excise duties apply on alcohol, tobacco, and petroleum products.
• Recycling fees apply on certain goods, including electronics, home appliances, and vehicles, under Japan’s strict recycling laws.
• Anti-dumping duties (ADD) and countervailing duties (CVD) may apply to specific goods (e.g. steel, chemical products).

De minimis thresholds

Japan provides a customs and tax de minimis exemption for low-value imports is JPY ¥10,000 for both duty and Consumption Tax.

Note: Certain items (e.g. alcohol, tobacco, perfumes, and goods subject to excise duty) are excluded from the exemption and always taxed.

Free trade agreements

Japan actively participates in a wide network of FTAs and economic partnerships:

• CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership): With 10 other Pacific Rim nations, reducing or eliminating tariffs on a wide range of goods.
• Japan–EU Economic Partnership Agreement (EPA): Eliminates tariffs on most goods between Japan and the EU.
• Japan–US Trade Agreement: Provides tariff reductions and preferential access for agricultural and industrial products.
• Japan–ASEAN and bilateral EPAs: With countries such as Australia, India, Mexico, Chile, and Switzerland.
• RCEP (Regional Comprehensive Economic Partnership): With ASEAN, China, South Korea, Australia, and New Zealand.

Prohibited & restricted goods

Japan enforces strict import controls through Japan Customs, the Ministry of Finance, and other agencies. Restricted or prohibited goods include:

• Firearms, ammunition, explosives, and weapons (without license)
• Narcotics, controlled substances, and certain pharmaceuticals (without approval)
• Counterfeit goods, pirated media, and trademark-infringing products
• Endangered species and related products (CITES restrictions)
• Certain plants, animals, and food products (subject to quarantine and phytosanitary regulations)
• Hazardous chemicals and asbestos
• Obscene materials and items deemed a threat to public order or morals
• Cultural property and antiquities (subject to permits)

An official list is available from Japan Customs website.