RCEP Market

Determining tariffs, duties and fees of imported goods into Japan

Import tariffs

After determining the classification of goods according to the Japanese HS system, importers can determine the import tariff rates applicable to those goods. The tariff rate is usually calculated as a percentage of the customs value of the goods.

For Vietnamese goods imported into Japan, businesses currently have 06 tariff options, each option corresponding to a certain tax rate and conditions for enjoying the tax rate. Specifically:

  • MFN tariff: This is the preferential tariff rate that Japan imposes on imported goods from WTO member countries. This tariff rate is decided by Japan but must comply with the commitment level in the WTO, applied to goods from member countries without any conditions on origin. Vietnam is a WTO member, so Vietnamese goods are naturally entitled to this tariff rate without having to meet any conditions.
  • GSP tariff: This is a special preferential tariff rate that Japan unilaterally grants to a number of developing/underdeveloped countries (including Vietnam). The preferential tariff rate and conditions for enjoying GSP preferences are decided by Japan.
  • AJCEP tariff: This is a special preferential tariff rate that Japan grants to goods from member countries of the ASEAN-Japan Free Trade Agreement (AJCEP), that is, ASEAN countries (including Vietnam). The actual preferential tariff rate is decided by Japan but cannot be higher than the committed level in AJCEP. To enjoy preferential tariff rates under the AJCEP Agreement, goods must ensure that they meet the rules of origin and have AJCEP certificates of origin.
  • VJCEP tariff: This is a special preferential tariff rate that Japan offers to goods from Vietnam under the Vietnam-Japan Free Trade Agreement (VJEPA). The actual preferential tariff rate is decided by Japan but cannot be higher than the rate committed in the VJEPA. To enjoy preferential tariff rates under the VJEPA Agreement, goods must ensure that they meet the rules of origin and have VJEPA certificates of origin.
  • CPTPP tariff: This is a special preferential tariff rate that Japan offers to goods from member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The actual preferential tariff rate is decided by Japan but cannot be higher than the rate committed in the CPTPP. To enjoy preferential tariff rates under the CPTPP Agreement, goods must ensure that they meet the rules of origin and have a CPTPP certificate of origin (note that for some types of goods, Japan applies different CPTPP preferential tariff rates according to the CPTPP country with origin determined according to separate rules).
  • RCEP tariff: This is a special preferential tariff rate that Japan offers to goods from member countries of the Regional Comprehensive Economic Partnership (RCEP). The actual RCEP preferential tariff rate will be decided by Japan but cannot be higher than the level committed in RCEP. To enjoy preferential treatment under the RCEP Agreement, goods must ensure that they meet the rules of origin and have a RCEP certificate of origin (note that for some types of goods, Japan applies different RCEP preferential tariff rates according to the CPTPP country with origin determined according to separate rules).

In principle, Japanese importers are the entities that must pay import tariff. However, due to the many different import tariff options for goods from Vietnam, depending on the specific situation of the goods, Vietnamese businesses can also use these options to negotiate orders and selling prices with Japanese importers. Businesses can look up tariff rates and rules of origin under FTAs ​​when importing to Japan at the following links:

Other taxes and duties

In addition to import tariffs, goods imported into Japan are also subject to other taxes, such as:

  • Consumption Tax: Most goods imported into Japan are subject to a consumption tax (equivalent to VAT in Vietnam) of 10% (except for food, non-alcoholic beverages and newspapers which are subject to a consumption tax rate of 8%). Consumption tax is calculated based on the customs value of the goods, plus import duties, insurance and shipping costs to Japan.
  • Excise tax: Some goods imported into Japan are subject to excise tax, including: alcohol, tobacco and petroleum products.
  • Anti-dumping tax, anti-subsidy tax and safeguard duties: Certain goods imported into Japan may be subject to anti-dumping, anti-subsidy or safeguard duties under specific trade defense cases in Japan.
  • Customs fees: Goods imported into Japan will be subject to certain customs fees as prescribed by the Japanese Customs Law. Businesses can find out details about customs fees and their corresponding rates at the following link: https://www.customs.go.jp/english/exp-imp/customsfee.htm

Source: Center for WTO and International Trade

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