Japan assesses tariff duties on the Cost, Insurance and Freight (CIF) value of the product being exported to Japan. The “C” in CIF represents the price/cost of the goods charged the buyer (importer) by the seller (exporter) for the product. The “I” represents any insurance fees paid to cover the shipment (over and above those insurance fees already included in the freight charges). The “F” represents the Freight charges to get the product from the exporter to the importer. By adding up each of these values you will have the CIF value of the product.

Customs Valuation—All goods sent to Japan must have a value and description provided, even samples and gifts. When a sale has occurred, in addition to the price paid or payable, associated charges such as transportation, sales commissions, discounts, etc. must be declared. For non-revenue shipments such as gifts, samples, and interoffice transfers, a fair market value must be declared, with one Japan Yen being the minimum possible value.

Import Duties—All goods entering Japan must clear Japanese Customs and are subject to Duty and Consumption Tax assessment, unless the goods are exempt by law. Duties are usually an “ad valorem” rate (a percentage) that is applied to the customs value (in Japanese Yen) of the imported goods – as discussed above. However, in rare instances, some goods are dutiable at a specific rate of duty, such as, based on the value per piece, kilo, or liter, while others are dutiable at a compound rate of duty (a combination of both ad valorem and specific rates). Rates of duty vary based on commodity type and country of origin and are available in the Harmonized Tariff Schedule of Japan. Although the maximum rate is 60% of CIF value, duti