Japan has been a top trading partner of the U.S. for many years. They have provided goods like vehicles, machinery and optical and medical instruments. Like every other country, there are duties and tariffs imposed on their goods. So, before you start importing you need to be familiar with what import costs from Japan will be like.
Import costs from Japan depend on what products you bring into the U.S. and what their value is. When you pay duties for an import from Japan, you will need the HTS code for your products. Fortunately, duties and tariffs for Japanese imports are cheaper due to the U.S. and Japan free trade agreement.
Our guide below will give further details about what you need to know about import costs from Japan.
Depending on the type of product you plan to import, you will have to pay a customs duty on goods shipped from Japan if they are for commercial use. Certain goods are duty-free according to the harmonized tariff schedule of the U.S. (HTSUS), whereas other goods do require duty to be paid.
Since duty taxes can vary from product to product, be sure to research the goods you want to import so you won’t be penalized if you don’t pay a duty. If you want to learn more about HTS codes, then check out our article where we cover all the basic information that you need to know about them.
The HTSUS is where you should go if you want to find out duty rates for imports. When you look at HTSUS codes you will see a column labeled as “special.” Under this column there will be a list of countries the U.S. has free trade agreements with and the applicable duty under that agreement. If you need to look up HTSUS codes you can do so on our website using our HTS code lookup tool.
Fortunately, the U.S. and Japan have an established free trade agreement that has been in effect for almost two years. The agreement was made so that the U.S. and Japan would have better trade access to each other's agricultural and industrial markets.
As part of the agreement, Japan has committed to either phasing out most of its tariffs, reducing tariffs, or giving lower duty rates depending on the number of imports. America is holding up its end of the agreement by making 90 percent of its food and agricultural imports duty-free or giving them preferential tariff access.
If you want to import agricultural and industrial products from Japan then this trade agreement is great news. Agricultural and industrial imports will have either no duty fees or reduced ones. Make sure that when you import agricultural products from Japan you follow the correct filing procedures:
To claim the preferential tariff treatment prescribed by the trade agreement, you must first meet the following requirements:
When you file for preferential tariff treatment, you will use the Automated Commercial Environment, or ACE. ACE is the system that members of the international trade community use to report their imports and exports.
Lastly, goods that have preferential treatment will still have merchandise fees attached to them.
The duty rates of the U.S. are simply percentages that are created based on the complete purchased value of the goods that were bought from a foreign country.
Customs and Border Protection (CBP) uses HTSUS to determine the duty rates of imports. The HTSUS serves as a manual where all of the applicable rates and statistical categories of various products can be found at.
Don’t forget that the free trade agreement between the U.S. and Japan has reduced or eliminated duties on certain imports originating from Japan.
Since Japan uses different methods to determine the duty of a product, it is hard to give a definitive number to how much the duties are. It all comes down to the total purchase value of your import when you bought it from Japan.
If you're looking to find out how much your imports from Japan will cost, the process is fairly straightforward. The steps are as follows:
When you calculate the duty rates for imports originating in Japan you should take into account the free trade agreement between the U.S. and Japan. Thanks to this free trade agreement, you will find that imported agricultural and industrial goods will be cheaper.
Of course, you have to make sure your products are accurately classified with the correct tariff classification from the HTS. This is often one of the most challenging aspects of the importing process. Thankfully, our Licensed Customs Brokers can assist you with this confusing and difficult task.
During our 1-on-1 consultations, our customs experts obtain detailed information about your imports. With this information, our team can locate and provide the correct HTSUS tariff classification for your goods.
As we have already discussed, the U.S. and Japan free trade agreement have reduced or eliminated tariffs on Japanese products
However, this free trade agreement does not apply to imported Japanese vehicles. The U.S. and Japan have a substantial automobile trade deficit. To make up for the gap, the U.S. government currently imposes a 2.5 percent tariff on imported cars of Japanese origin.
Before we get into Japan’s antidumping and countervailing duties, we will first explain what dumping and countervailing are.
Dumping is when companies manufacture goods and then export them at prices much lower than they normally would. To defend their economy, the government will apply antidumping duties to these types of products when they are imported.
Countervailing duties on the other hand are tariffs that are used to offset subsidies. These subsidies would usually be made to producers in the exporting country. Countervailing is meant to create an equal playing field where both domestic and foreign producers of a particular good can sell it at lower prices.
As you can see, there’s a good amount to know when it comes to importing goods from Japan. Having an experienced and reliable customs broker can help you with this added responsibility.
When it comes to importing, we’re the team of experts you can trust. At USA Customs Clearance, powered by AFC International, we have the know-how to make sure that your imports make it into the country smoothly and efficiently regardless of where they come from.
On our consulting page, you can schedule a 1-on-1 consultation with one of our customs brokers. Our experts will help you calculate and understand your import costs from Japan. If you aren’t ready for a consultation, then contact our team and they can guide you to your next step.