DOING MAIL ORDER BUSINESS IN JAPAN: GOVERNMENT REGULATIONS

KEEP IN MIND: Japanese regulations are notoriously vague and bureacrats are left with a lot of leeway in interpreting what those regulations mean. It is often impossible to get a definitive opinion as to a particular product/business practice. Different government organs are known to disagree, give conflicting information, and follow different guidelines on the same product/practice. Opinions given CAN CHANGE without any changes in the underlying law. The bureacrat and his opinion is fickle and usually final.

At present, government regulations regarding "personal import" (the Japanese term for shopping by mail from overseas) are very lax.

ALMOST ANYTHING GOES
Japan permits import via mail order of almost any legal product: including products a US resident could never hope to import privately into the US, such as tobacco, medicines, and alcohol, as long as the quantities imported are arguably for personal consumption.

BARRED EXCEPTIONS
Only four types of products are not permitted: narcotics, weapons (such as firearms and explosives, swords, etc.), ivory products, and pornography. Note that some shippers are not licensed to carry some products. For example, UPS will not ship tobacco to Japan but USPS will.

DUTY
Duty rates are low. Overall level of duty is lower in Japan than in the European Community. Duty is levied on CIF basis (invoice plus shipping). (See DUTY RATES)

If you ship by USPS, the Japanese post office will assess and collect duty from your customers. If you ship by most other shippers, the shippers will clear your packages through customs, pay the duty and then collect it from your customers.

SPECIAL RATE OF DUTY FOR MAIL ORDER
A special rate applies to "Personal Import": packages valued under JPY100,000 (about $750) are uniformly taxed at 5% on their CIF value (i.e. entire invoice amount, including shipping and handling), even in cases where the standard rate is much higher. This rate was instituted in order to make "Personal Import" even easier by streamlining the procedures.

NOTE: This duty is often not enforced. Effectively, personal importation often incurs no duty at all.