Method of calculating import consumption tax in Japan

When importing goods from overseas to Japan, the taxes levied on the goods are custom duty and import consumption tax.

1. Calculation of custom duty

Custom duty is calculated based on CIF price of the imported goods under the formula below:

CIF price x Custom duty rate = Custom duty



Where CIF price = goods price + shipping fee + insurance + other imported expenses

Other imported expense consists of the following:

a) Handling fee, container or packaging expense liable by the buyer

b) Materials, tools, molds or other supplies; technology or design offered by the buyer free of charge or at a discounted price.

c) Royalty or license fee paid for the use of patent rights

d) Profit attributed to the seller


2. Calculation of import consumption tax:

(CIF price + Specific consumption tax other than import consumption tax + Custom duty) x consumption tax rate = Import consumption tax


3. Price changed after import

If the price of the goods increases after import, then the buyer is responsible to pay the additional import consumption tax calculated on the increased price.

If the price of the goods decreased due to the rebate offered to the buyer, the consumption tax is not calculated on the decreased price.

 


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