how to export to japan - eas · pdf fileduty-free rates to products imported from developing...
TRANSCRIPT
![Page 1: How to Export to Japan - EAS · PDF fileduty-free rates to products imported from developing ... • Commercial or Pro Forma Invoice ... so that the Japanese Custom officials can check](https://reader033.vdocuments.net/reader033/viewer/2022052710/5aa574e77f8b9a1d728d2f6c/html5/thumbnails/1.jpg)
How to Export to Japan
Rob Van Nylen
Representative Director
Akoni KK
1
22 September 2016
Enterprise Estonia
2F Lasnamäe 2, Tallinn
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• 8:45-9:00: Registration and coffee
• 9:00-9:30: Brief introduction of cultural background on
how/why to do business with Japan
• 9:30-10:15: Potential market entry strategies, overview of
domestic distribution, e-commerce opportunities
• 10:15-11:00: Overview of key Japanese laws per sector,
standards and certificates
• 11:00-11:15: Coffee break
• 11:15-12:00: Labeling and packaging
• 12:00-12:45: Customs and tariffs
• 12:45-13:00: Q&A
• DISCLAIMER: all copyrights of visuals belong to their respective owners
Programme
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• CEO Akoni KK (JP), MD JCS bvba (BE), Co-Gerant JFPM Global sarl (FR), Director POMMEKE KK (JP)
• Track record of Business/IT Development for EU companies in Japan for +20 years
• Fluent in business Japanese (JETRO Level A), Japanese Studies major KULeuven & Kansai University
• Certified Export Advisor to Japan (EHSAL Management School)
• +15 years EU Gateway experience • Japanisch Deutsches Zentrum Berlin Grant and
Japan Foundation Grant Fellow • Family, Foodie, Active Cycling
Rob VAN NYLEN
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Culture & Why Japan
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General - Details
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Business Cards
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Meetings
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Consensus
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English - Decisions
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Service
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Kaizen
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Customer = God
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80% Preparation
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• high quality
• traditional-authentic, pioneer (EU quality labels on food like PDO, PGI, TSG)
• hand-crafted, genuine materials, strong geographic characteristics
• eco-friendly
• durability
• recycle, re-use
• universal design
• health-oriented (EU Organic Farming Label)
• no-additives, reduced salt, reduced fat
• no artificial colouring
• no preservatives
• organic materials
• natural ingredients
• fair trade & Corporate Social Responsibility (CSR)
• impeccable service and after-service ….
• * Japanese Prosumers
USPs
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• GDP: 500 trillion yen (global number 3, after US & China) • Postal savings: 200 trillion yen in deposits • Sovereign debt: +1 quadrillion yen, approx. 220% GDP p/a • Volatile exchange rate: Dec ‘12: 1euro=100 jpy; Jan
‘14=143 jpy; Sept ‘16=114.5 jpy: (133 jpy pricefork) • Unemployment rate: 8.4% (Aug ‘16)
• Interest rates: BoJ historically low at 0%
• Consumption tax hike Apr ‘14 from 5 => 8%, followed by a hike up to 10% afterwards (tbd)
• 2020 Tokyo Olympics ⬄ 3.11 Great Tohoku Earthquake ⬄ Kumamoto Earthquake 4.16 Reconstruction
• 127 million savvy ‘prosumers’ who like USP’s
• 80% consumption domestically
Why Japan
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EU-JP Trade - FTA
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EU biggest FDI 2014
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Nikkei Index
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Exchange Rate
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• Elderly Care Sector (2010 +30 mio > 65 yrs; 23% => 45% 2050) • Healthcare Sector (7.4 trio in 2009) • Renewable Energy Sector (market: 59 trio ‘05 => 83 trio yen ‘15) • Bio and Nanotechnology Sector (25 trio 2010 for bio, 13.4 trio in
2020 => 26 trio by 2030 for nano) • Information Technology Sector (market 96.5 trio, hard: 28 trio,
soft: 20 trio) • Luxury Products Sector (2.6 trio ‘12, 40% of purchases in Japan) • Food & Drinks Sector (market: 17.4 trio in ‘13) • Construction & Building, Furniture Sector (interest rates, tax cuts) • Incentives for Overseas Investors & Business Owners • Support: EUJCIC, JETRO, trade section of your embassy, EBC,
Chamber of Commerce, Green Gateway to Japan
Opportunities
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Sectors
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• Strong JPY vs Euro • Direct distribution (import, distributor, wholesaler, retailer)
• Niche market segment
• Long term commitment (3 years)
• Mutual trust
• Negotiate basic agreements
• Bottom-up decision style
• Business cards
• Visual presentations (Japanese)
Tips & Tricks
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Regional GDPs
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• Sales Agent
• Importer/Distributor/Retailer
• Representative Office
• Branch Office
• Subsidiary Company (KK)
• Limited Liability Partnership (LLC)
• Incentive Programs (APAC hub, R&D…)
• JETRO: https://www.jetro.go.jp/en/invest/setting_up.html
• EU Japan Centre for Industrial Cooperation (EU
Business in Japan): registration is mandatory
http://www.eubusinessinjapan.eu/
Market Entry
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• high running business costs (rent office)
• business particularities (keiretsu)
• strong unilingual Japanese environment
• executive board commitment for time
consuming entry
• rigid administrative procedures
• finding suitable bilingual human
resources (lay-off procedures)
Challenges
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Market Entry
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Market Entry
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• Household Goods Quality Labelling Act
• Consumer Product Safety Act
• Food Sanitation Act
• Labelling, Marking and Packaging Requirements
• Quarantine Act
• Plant Protection Act
• Evaluation of Chemical Substances’ Act
• Electrical Appliances and Materials Safety Act
• Measurement Act
• Pharmaceutical Affairs Law
• Washington Convention Act
• Intellectual Property Law
For detailed information, please visit websites of JETRO and EUJCIC
Key Japanese Laws
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Japanese Standards
• The Japanese Industrial Standards (JIS), administered by
Ministry of Trade, Economy and Industry (METI)
• The Japanese Agricultural Standards (JAS), managed by
the Ministry of Agriculture, Forestry and Fisheries (MAFF)
• Both laws are equally applicable to domestically
manufactured and imported products
• Earthquake and Fire resistance/retardance
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A: Civil Engineering and
Architecture
B: Mechanical Engineering
C: Electronic and Electrical
Engineering
D: Automotive Engineering
E: Railway Engineering
F: Shipbuilding
G: Ferrous Materials and
Metallurgy
H: Non-ferrous Metals and
Metallurgy
JIS Categories
K: Chemical Engineering
L: Textile Engineering
M: Mining
P: Pulp and Paper
Q: Management System
R: Ceramics
S: Domestic Wares
T: Medical Equipment and Safety
Appliances
W: Aircraft and Aviation
X: Information Processing
Z: Miscellaneous, Packaging,
Welding, Radioactivity, etc.
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• One general JAS (black) mark focusing on quality factors like
composition, grading and performance
• Three specific JAS marks with production product information (blue
mark), organic foods (green mark) and naturally grown chicken (red
mark) also including meat products (same red mark) like hams, bacon
and sausages
JAS
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• Business Terms: Ex-Factory, FOB in Euro
• Payment Terms: Letter of Credit (L/C) on site via bank
• Transport Modes: Sea (6W), Air (1W), SAL (3-4W)
• Air Shipment: ANA (Star Alliance: LH, SAS) & JAL
(OneWorld: BA, AF, KLM) from FRA, CDG, LHR, BXL,
AMS, MUC, DUS to NRT/HND Airport, NGO/KIX
International Airport
• Hamburg, Rotterdam, Antwerp, Marseille to Tokyo,
Yokohama, Nagoya, Osaka, Kobe Seaport
• Domestic Transport: Trucks & Railway, Parcel Couriers,
Japan Post
Transport-Export
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Transport-Export
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Import Flow
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• Major LSPs with EU Network (sea/air)
Nippon Express, Nissin Corporation, Overseas Courier Service,
Kintetsu World Express, MOL Logistics, Hitachi Transport System,
Mitsui-Soko, Mitsubishi Logistics Corporation, Yamato Logistics,
Yusen Air & Sea Service, NYK Logistics
• Domestic Parcel Delivery Companies
Fukuyama Transporting, Nippon Express, Seino Transportation,
Yamato Logistics, Sagawa Transport, Japan Post
• Global Logistics Companies in JP (sea/air)
ECU-Line Japan, Bax Global Japan, Danzas Maruzen, DHL Japan,
Eagle Global Logistics, Menlo Worldwide Japan Corporation, Exel
Japan, Expeditors Japan, Kuehne + Nagel, Schenker-Seino, UPS
Supply Chain Solutions Japan, A. Hartrodt Japan, SDV Japan, ABX
Logistics Japan, MC Trans International, OOCL Logistics, Federal
Express, TNT Express
Logistics - Distribution
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• https://www.amazon.co.jp/ (FBA: fullfilment by amazon)
• http://www.rakuten.co.jp/
• BtoC: 8 trillion jpy market!
e-commerce
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Labeling & Packaging
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Voluntary Sector Labels
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• Name of the product
• Country of origin
• Name of the importer
• Ingredients, other than additives, in descending order of weight percentage
• Food additives in descending order of weight on a separate line from other
ingredients
• The net weight can only be mentioned in metric units (a system of average net
weight tolerances of packages or certain commodities is determined separately
by the Japanese Measuring Law)
• The ’best-before consumption date’
• Clear and detailed storage instructions (Japan can be very hot and humid from
June till August), also storage information after opening the package is usually
added
• Labelling of certain biotechnology ingredients where the genetically modified
content of the ingredients exceed 5% in the total content of the finished product
• Finally, quite often the label also contains sector specific recommendations, eg
‘only consume alcohol when you’re over 20’
Label Content
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Food Label
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1. Presently, Japan's tariff schedule has 4 major applicable
rates
a. General
b. Temporary
c. World Trade Organization (WTO)
d. Preferential
2. For goods exported from the EU to Japan, in principle, the
tariff rate will be levied at WTO rates unless a lesser
‘Temporary’ rate exists for that specific product at that
moment
3. Japan's preferential system of tariffs usually grants lower or
duty-free rates to products imported from developing
countries or countries that Japan has specific trade (bilateral)
agreements with
4. Japan also follows the global Harmonized System for
deciding upon the tariff schedule
Customs & Tariffs
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Food Import Procedure
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Customs
● When exporting goods to
Japan, upon arrival at the
airport or seaport, the
Japanese customs will levy
the respective tariff duties,
based upon the Cost
Insurance Freight (CIF) value
ad valorem or other specific
rates (EUR value x JPY)
● A Customs Duty Payment
declaration form in triple has
to be prepared as well
● Usually, your forwarder and
customer will handle these
documents
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Documents
• Commercial or Pro Forma Invoice (triplicate, detailed description of
the content and preferably with an authorized signature of the
official representative of the exporting company)
• Bill of Lading for Sea Transport or Air Waybill for Air Transport
• The Certificate of Origin to determine the country of manufacturing
so that the Japanese Custom officials can check whether a
preferable WTO custom rate is applicable or not
• Accurate and correct Packing List (triplicate) clearly stating the
product names, quantities, gross and net weights and the
measurements, using metric sizes, of each package (preferably with
an authorized signature of the official representative of the exporting
company). Quantities mentioned on the Packing List should be
exactly the same with the invoice and the actual quantities shipped
to Japan
• Insurance Certificates (where applicable)
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Q&A
Everything you
always wanted to
know about japan,
but always were
afraid to ask!
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Thank you for your attention!
ご清聴ありがとうございました!
46
Rob Van Nylen
Akoni KK
+81 90 2521 8191
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• Japan’s low self-sufficiency food level vs imports
• Strong JPY exchange rate since 2015
• European products and services are highly perceived (quality, freshness, safety)
• Smart PR & MarCom strategy for Japan
• USPs of European products!
SWOT (Strengths)
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• 45 days sea => 2 months lead time
• Strong competition from Asia + offshore
• Geographic distance at time of claims
• Language barrier (both parties communicating in
English, their non-native language)
SWOT (Weaknesses)
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• ‘develop and import’ business model • Offshore production & deliveries to Japan • E-commerce (Rakuten, Amazon Japan, Parcel delivery services…)
• Long-term & loyal + honest partners • Be big in your niche market segment with decent profit
or go ‘small’ in the main market with razor-thin profit margins but big volumes
• Industry fairs are held (bi-)annually in Tokyo, exhibit! • FTA negotiations EU-Japan (’13-’18) • Authorized Economic Operator System (AEOS)
SWOT (Opportunities)
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• High expectations from the Japanese buyer, prosumer, market in general (damage to outer packaging…)
• Patience is a virtue
• Details is a different league/game in Japan
• Correct/accurate paperwork is a must
• Rigorous incoming inspection (customs, business partner, client)
• Frustration market potential vs actual volume
• The biggest size company is not always the best client (eg. general trading companies)
SWOT (Threats)