How to Start a Goods Import and Export Company in Japan as a Foreigner: The Complete 2026 Guide

Japan sits at one of the world's most strategically positioned trade crossroads. The world's fourth-largest economy by GDP, the third-largest import market globally, and the home base of some of the planet's most respected manufacturing brands — Japan is a country that both needs the world's goods and supplies the world with its own. Its total merchandise trade exceeds ¥200 trillion per year. Its logistics infrastructure, port network, and customs systems are among the most advanced anywhere.

For a foreign entrepreneur, establishing a trade company in Japan — importing goods from overseas to sell in the Japanese market, or sourcing Japanese-made products to sell internationally — is one of the most genuinely scalable business models available. Unlike many other business types that require a physical customer-facing location, a deep local network, or years of Japan-based brand building, trade can be started relatively leanly, can be operated with a small team, and can scale rapidly when the right product-market fit is identified.

What makes it complicated is not the market itself — it is the regulatory framework. Japan has a layered system of product-specific certifications, customs procedures, export control rules, and compliance requirements that vary dramatically depending on what you trade. Get the compliance right from the start and the business is entirely manageable. Discover a compliance gap after you have already ordered a container of goods — that is where the real cost begins.

This guide covers everything: the correct visa path, company structure, the NACCS customs system, Japan's product certification requirements by category, the October 2025 FEFTA export control changes that no other English guide has covered properly, Japan's FTA network and how to use it, financing through JFC, and a step-by-step walkthrough of both import and export customs procedures.

The Opportunity: Why Japan's Trade Market in 2026

Japan's trade position in 2026 provides specific opportunities that foreign entrepreneurs are well-placed to capture.

On the import side: Japan's consumer market has an ongoing appetite for quality imports across food and beverages, cosmetics and personal care, fashion and apparel, home goods, health supplements, outdoor equipment, and technology products. Japan's aging population drives consistent demand for health-related products, and its food culture — one of the most sophisticated in the world — creates import opportunities for premium overseas food and beverage products that no Japanese brand can replicate. Japan's domestic retail market is evolving toward e-commerce, making it possible to enter the market with lower fixed retail costs than would have been required a decade ago.

On the export side: Japanese-made products enjoy a global premium reputation for quality, reliability, and craftsmanship. Japanese food products — particularly sake, wagyu beef, specialty teas, condiments, and confectionery — are experiencing explosive export growth as Japan's culinary reputation globalizes. Japanese health and beauty products, precision tools, industrial machinery components, and electronics command premium positioning in markets across Southeast Asia, the Middle East, North America, and Europe.

The foreign entrepreneur advantage: Language and cultural knowledge are the core moat in trade. A foreigner with native-level knowledge of a foreign market — its consumer preferences, regulatory environment, distribution networks, and buyer relationships — has a genuine structural advantage over Japanese trading companies trying to enter the same market. If you know your home country's import regulations, the buying habits of its consumers, and who the right distribution partners are, you can out-execute much larger competitors on those specific product flows.

Step 1: The Visa Framework — Post-October 2025

Before any other step in the business setup process, the visa question determines your legal right to operate the business in Japan. The October 2025 revisions to the Business Manager Visa have made this the most critical starting point for any foreign entrepreneur in 2026.

Business Manager Visa (経営・管理ビザ) — Current Requirements

The Business Manager Visa is the standard pathway for foreign nationals establishing and operating a trade company in Japan. The October 16, 2025 revisions introduced requirements that are substantially more demanding than the previous framework:

¥30 million in registered capital. The previous ¥5 million threshold has been raised sixfold. For a trade company, ¥30 million is a manageable operational budget — it covers initial inventory orders, working capital, premises, and operating costs through the first year — but it must be genuine equity capital, clearly documented through bank records and company registration documents.

One full-time qualifying employee. You must employ at least one full-time worker who is a Japanese national, permanent resident, special permanent resident, or a spouse of a Japanese national or permanent resident. Employees on standard work visas do not satisfy this requirement. For a trade company, this employee requirement has practical value beyond visa compliance — a Japanese-national employee who can handle customs documentation, supplier communications, and government agency interactions in Japanese removes one of the most significant operational barriers for a foreign owner.

Japanese language proficiency at JLPT N2 level. Either you or your qualifying full-time employee must demonstrate this level. For a trade business, Japanese proficiency is operationally essential across customs procedures, supplier negotiations, product certification applications, and government agency communications — the visa requirement simply formalizes what good business practice already demands.

Third-party business plan verification. A certified public accountant, registered administrative scrivener (gyōsei shoshi), or SME management consultant must evaluate and certify your business plan. For a trade company, the business plan should include your target product categories, your import/export market strategy, supplier and buyer relationships, regulatory compliance approach, and detailed financial projections.

Genuine ongoing business activity. The October 2025 revisions introduced stricter enforcement of the requirement that the business actually operate. A company with no transactions, no revenue declarations, and an owner who is rarely present in Japan will not survive visa renewal under the new framework.

Applications submitted before October 15, 2025 continue under the previous rules. Existing Business Manager Visa holders have until October 16, 2028 to fully comply.

Startup Visa — The Preparation Pathway

If you are not yet at the ¥30 million capital threshold, or want to enter Japan to research suppliers, visit trade shows, build buyer relationships, and prepare your company infrastructure, the Startup Visa offers up to two years of residence for business preparation — now available nationally through certified municipalities (expanded from its previous special-zone-only availability as of January 2025).

During the Startup Visa period, you can attend trade fairs (Tokyo International Gift Show, FOODEX Japan, Japan IT Week), visit potential suppliers, engage customs brokers and gyōsei shoshi, open bank accounts, and begin company registration preparation. You cannot yet conduct revenue-generating import or export transactions — but you can build every operational foundation the business needs before committing to the full Business Manager Visa capital requirement.

Already in Japan with Qualifying Residency

Permanent residents, spouse visa holders, long-term residents, and others with unrestricted business activity permission can establish a trade company without applying for the Business Manager Visa. Your existing status covers the right to conduct any business activity. This is the simplest path for those already deeply rooted in Japan.

Step 2: Company Incorporation — Structure and Sequence

Incorporate your company before applying for any trade-related licenses or registering with customs authorities — both require your company's legal registration details.

Kabushiki Kaisha (KK) vs. Godo Kaisha (GK)

KK (株式会社): The standard Japanese joint-stock company structure. Higher incorporation cost (¥240,000+ in government fees plus professional fees) but the highest level of institutional credibility. Japanese suppliers, banks, customs authorities, and overseas trading partners are most familiar and comfortable with the KK structure. For a trade company where building supplier trust and accessing trade finance is important, the KK's credibility premium is real. Recommended for anyone planning meaningful trade volume from the start.

GK (合同会社): Japan's LLC equivalent. Lower incorporation cost (¥60,000 in government fees), simpler administration, and perfectly adequate for smaller-scale operations. Can be converted to a KK as the business grows. A viable starting point for lean initial operations.

Critical for trade companies: Your articles of incorporation (定款, teikan) must explicitly list import and export trading among the stated business purposes. Include specific wording such as: "Import and export of goods, agency and brokerage for international trade transactions, and related consulting services." A company incorporated for a different stated purpose cannot legally conduct trading activities without amending its articles of incorporation. Confirm this wording with the gyōsei shoshi handling your incorporation.

Incorporation timeline: Two to four weeks for a KK (including notarization at approximately ¥52,000), approximately two weeks for a GK.

Step 3: Understanding Japan's Customs System — NACCS

Every import and export transaction passing through Japan's borders is processed through NACCS — the Nippon Automated Cargo and Port Consolidated System. NACCS is Japan's national electronic customs clearance system, connecting importers, exporters, customs brokers, shipping companies, airlines, port operators, and government agencies on a single integrated platform.

As of 2026, over 90% of all Japan customs declarations are processed electronically through NACCS. Paper-based declarations are technically still possible in limited circumstances but are increasingly rare and significantly slower.

How NACCS Works for Your Business

You have two practical options for accessing NACCS:

Direct NACCS registration: Your company registers directly as a NACCS user. You gain direct access to the system and can file your own customs declarations. This requires:

• A valid company registration in Japan

• A NACCS user registration application submitted to the NACCS Center

• A signed user agreement

• Technical setup for your system to interface with NACCS

Direct registration gives you maximum control and eliminates the customs broker's fee on every transaction — which becomes significant at volume. The trade-off is the complexity of operating within the system and maintaining the required Japanese-language proficiency to handle all declarations accurately.

Working through a licensed customs broker (通関士, tsūkanshi): Most importers and exporters — particularly those starting out — engage a licensed customs broker who accesses NACCS on their behalf. The customs broker prepares and files all declarations, communicates with customs officers, manages any inspection requirements, and ensures duty payments are processed correctly.

Customs broker fees vary by transaction complexity and cargo volume but typically range from ¥10,000–¥50,000 per shipment for standard commercial goods. This cost is real but manageable, and the expertise a good customs broker brings — particularly on product classification, duty rate optimization, and navigating product-specific compliance requirements — typically generates more value than it costs for a business starting out.

Our recommendation: Start with a licensed customs broker while you learn the system. As your volume grows and your team's Japan customs knowledge deepens, consider direct NACCS registration to reduce per-transaction costs.

Japan Customs' Role in Trade Compliance

Japan Customs (日本税関) operates under the Ministry of Finance and is responsible for:

• Examining and approving import and export declarations

• Collecting customs duties and consumption tax on imports

• Enforcing product safety and compliance requirements at the border

• Coordinating with other agencies (METI, MHLW, Ministry of Agriculture) on product-specific import restrictions

• Conducting physical inspections of shipments (typically risk-based and random, though certain product categories are inspected more routinely)

Japan Customs does not issue licenses for trading companies as a category. Any legally registered company in Japan can import and export goods — what matters is whether the specific products you trade require additional approvals, certifications, or permits from sector-specific ministries. These product-specific requirements are the most important compliance area for any trade business.

Step 4: Product Certification and Regulatory Requirements by Category

This is the most operationally critical section of this guide — and the area most likely to cause costly delays if not addressed before you place your first order.

Japan applies product safety and quality standards to a wide range of goods categories through a set of sector-specific laws, each administered by a different ministry. Importing non-compliant goods into Japan — or exporting goods that require METI approval without obtaining it — results in shipments being held, returned, or destroyed at the importer's cost.

The following categories are the most common areas where foreign trade entrepreneurs encounter compliance requirements.

Electrical and Electronic Products — PSE Mark (電気用品安全法, Denki Yōhinhin Anzenhō / DSHA)

The Electrical Appliances and Materials Safety Act (DSHA) governs the import and sale of electrical products in Japan. Any electrical product sold or distributed in Japan must bear the PSE mark (PSEマーク) — Japan's equivalent of the CE mark in Europe.

Two PSE categories:

Diamond PSE (◇PSE): Applies to 116 categories of higher-risk electrical products including refrigerators, washing machines, air conditioners, televisions, microwave ovens, electric water heaters, and electric blankets. The diamond mark requires third-party testing and certification by a government-registered inspection body before products can be imported and sold. The manufacturer or importer must register as an "Electrical Appliance Manufacturer or Importer" with METI.

Circular PSE (○PSE): Applies to 341 categories of lower-risk products including LED lighting, electric fans, power strips, battery chargers, mobile phone chargers, and similar items. Self-declaration of conformity is permitted — the importer tests the product against Japanese technical standards and self-certifies, registering with METI before marketing.

Timeline: PSE certification for Diamond PSE products — particularly those requiring third-party testing — can take three to six months. Begin the certification process immediately after company incorporation. Attempting to import uncertified electrical products will result in seizure at the border.

METI notification: Before marketing PSE-certified products, companies must submit a notification to METI. This is a formal registration process, not a simple online form, and must be completed before the first sale.

Food and Beverages — Food Sanitation Act (食品衛生法, Shokuhin Eisei-hō)

All food products, beverages, food additives, food contact materials, and packaging imported into Japan must comply with the Food Sanitation Act administered by the Ministry of Health, Labour and Welfare (MHLW).

Key requirements:

Every food consignment imported into Japan must be accompanied by an import notification (食品等輸入届出書) submitted to the MHLW's quarantine station at the port of entry before or at the time of arrival. This is not a one-time business registration — it is a per-shipment notification submitted through the FAINS (Food Automatic Import Notification System) electronic platform.

Products must comply with Japan's standards for:

• Permitted food additives (Japan's permitted additive list differs significantly from the EU and US lists — additives permitted in your country of origin may be prohibited in Japan)

• Pesticide residue maximum limits (MRLs) — Japan's MRLs for certain agricultural products are stricter than international Codex standards

• Microbiological standards

• Labeling requirements — all food products sold in Japan must have Japanese-language labels meeting the requirements of the Food Labeling Act (食品表示法), including ingredient lists, allergen declarations, expiry dates, and net weight

Quarantine inspection: Many food shipments are subject to quarantine inspection at the port — particularly first-time imports of a new product or from a new supplier. Inspection fees and the time cost of inspection (typically two to three days for standard air freight food, up to a week for sea freight) must be factored into your supply chain planning.

Prohibited ingredients: Certain food additives commonly used overseas are completely prohibited in Japan. Importing products containing these additives — even if fully compliant with origin country regulations — will result in the shipment being rejected and returned or destroyed. Engage a bilingual food regulatory consultant to review your product formulations against Japan's additive permitted list before placing any order.

Online pharmaceutical applications (July 2025): As noted in the October 2025 Chambers International Trade Guide, online applications for import confirmation via electronic systems became mandatory for pharmaceuticals starting July 2025. If your business touches pharmaceutical or quasi-pharmaceutical products, all confirmation applications must now be filed electronically.

Cosmetics and Quasi-Pharmaceuticals (化粧品/医薬部外品)

Cosmetics imported into Japan must comply with the Pharmaceuticals and Medical Devices Act (PMD Act / 薬機法). Unlike many countries where cosmetics are relatively lightly regulated, Japan maintains two distinct product categories:

Cosmetics (化粧品): Products making only cosmetic efficacy claims (moisturizing, cleansing, coloring). These require the importer to hold a Cosmetic Import Business License (化粧品輸入販売業許可) issued by the prefectural government. Each product must be individually notified to the prefecture before sale. Ingredients must appear on the Japanese label in Japanese using the Japanese INCI naming system.

Quasi-pharmaceuticals (医薬部外品): Products making mild efficacy claims (whitening, anti-dandruff, deodorant, anti-cavity toothpaste). These require a Manufacturing and Marketing Approval (製造販売承認) from the MHLW before import. The approval process is significantly longer and more complex than the cosmetics notification — budget six to twelve months for new product approvals.

The practical implication: A hair care product that is sold as a straightforward cosmetic in Europe may be classified as a quasi-pharmaceutical in Japan if its label makes any claim about efficacy that Japan considers therapeutic. Have product claims reviewed by a regulatory consultant before importing.

Health Supplements and Functional Foods

Japan's regulatory framework for health-related food products is detailed and does not automatically recognize the claims permitted in other markets.

Standard supplement imports: Vitamins, minerals, and general dietary supplements without health claims can typically be imported as standard food under the Food Sanitation Act requirements above — no special approval required beyond the standard import notification process.

Products with health claims: If you want to market a product with a specific health claim in Japan, it must be approved under one of Japan's three health claim categories:

• FOSHU (特定保健用食品, Tokuho): "Foods for Specified Health Uses" — requires rigorous clinical evidence and individual product approval from the Consumer Affairs Agency. The most demanding category — approval can take 1–3 years.

• FFC (機能性表示食品): "Foods with Functional Claims" — less demanding than FOSHU, requires submission of scientific basis and notification to the Consumer Affairs Agency before marketing.

• Nutritional Functional Foods (栄養機能食品): Standardized claims only for specific nutrients at defined levels — no approval required if the product meets the defined nutrient level ranges.

Most initial importers of health supplements enter Japan without health claims — standard import as food — and evaluate whether the FOSHU or FFC pathway is commercially justified based on market response.

Pharmaceuticals and Medical Devices

The most heavily regulated import category in Japan. The PMD Act governs both pharmaceuticals and medical devices and requires:

Marketing Authorization Holder (MAH) status: To import and sell pharmaceuticals or medical devices in Japan, the importer must be a licensed MAH — or must contract with an existing licensed MAH in Japan to act on their behalf. Obtaining MAH status requires regulatory capital of ¥30 million or more (for most categories), a qualified pharmacist or relevant technical expert on staff, and approval from the relevant prefectural government.

Individual product approvals: Every pharmaceutical product and most medical device categories require individual product approval from the MHLW before import or sale. Clinical data, manufacturing facility inspections, and GMP (Good Manufacturing Practice) certification of the overseas manufacturer are all part of the approval package.

For most foreign entrepreneurs without deep pharmaceutical regulatory expertise and long-term Japan market commitment, this category requires a specialized regulatory partner in Japan rather than independent operation as an initial importer.

Agricultural Products and Fresh Produce — Plant Quarantine Act

Importing fresh agricultural produce, plants, and soil into Japan triggers the Plant Quarantine Act (植物防疫法) administered by the Ministry of Agriculture, Forestry and Fisheries (MAFF). All fresh plant products must pass phytosanitary inspection at the port of entry, and many products are either prohibited or subject to treatment requirements depending on their country of origin and the pests present there.

Certain products are completely prohibited from importation from specific origin countries — the prohibited list is country-of-origin and product-specific and changes based on pest and disease risk assessments. Always verify the current status with MAFF or your customs broker before ordering.

Meat and animal products are regulated under the Domestic Animal Infectious Diseases Control Act and require import inspection by the Animal Quarantine Service.

Industrial Machinery and Equipment

General industrial machinery and equipment has relatively limited Japan-specific certification requirements compared to consumer goods. The main compliance areas are:

Product liability: Japan's Product Liability Act makes the importer liable for product defects causing harm, equivalent to the manufacturer's liability position in many other countries. Adequate product liability insurance and manufacturer's warranty documentation are essential.

Specific safety standards: Some machinery categories have specific Japanese Industrial Standards (JIS) or safety mark requirements. Check applicable JIS standards for your product category with a technical consultant.

Radio Communication Equipment — Technical Conformity Certification (技適マーク, Giteki Mark)

Any radio communication equipment — Wi-Fi routers, Bluetooth devices, wireless speakers, IoT devices — must carry the Technical Conformity Mark (技適マーク) to be legally sold and operated in Japan. This certification is administered by the Ministry of Internal Affairs and Communications (MIC) through registered testing bodies.

Importing or selling radio devices without the Giteki mark is a violation of the Radio Act (電波法) — not just a customs compliance issue but an active violation of operational law. Certification requires testing at an approved laboratory; costs and timelines vary by device complexity.

Step 5: Japan's Export Control Framework — Including the October 2025 FEFTA Changes

Japan's export control system is governed primarily by the Foreign Exchange and Foreign Trade Act (FEFTA / 外国為替及び外国貿易法) and its subordinate regulations — the Export Trade Control Order (輸出貿易管理令) and the Foreign Exchange Order. METI is the primary enforcement authority.

Understanding Japan's export controls is essential for any company exporting goods from Japan, because the legal obligation rests entirely with the exporter — not with customs authorities as a catch-all filter.

The Two Types of Export Controls

List Controls (リスト規制): Specific goods and technologies are listed in the Export Trade Control Order and require an export license from METI regardless of the destination country or end user. These controlled items primarily cover goods with weapons of mass destruction potential, advanced military applications, and specific dual-use technologies including semiconductor manufacturing equipment, precision machine tools, certain chemicals, and biological materials. If the goods you intend to export appear on the list, you must apply for an export license before shipping.

Catch-All Controls (キャッチオール規制): Apply to goods not on the controlled list — standard commercial goods — when there is reason to believe they may be diverted to military applications, WMD development, or sanctioned end users. The catch-all system requires exporters to assess each transaction's end-use risk and apply for a license if there is reason to believe the goods may be put to controlled uses.

The October 2025 FEFTA Amendments — Critical Update

On October 9, 2025, METI implemented the most significant revision to Japan's catch-all export control system in years. Most English-language guides for foreign entrepreneurs in Japan have not yet addressed these changes, which materially affect compliance obligations.

Reclassification into "Core Items" and "General Items":

The October 2025 amendment divided catch-all controlled goods into two tiers:

Core Items (コア品目): Goods with a high risk of military diversion — identified as including certain semiconductors, advanced machine tools, precision manufacturing equipment, and related components. Core Items face stricter catch-all control standards and enhanced due diligence requirements regardless of destination country. If you deal in any product that could conceivably be classified as a Core Item, a formal classification review by a regulatory attorney or METI consultation is non-negotiable.

General Items: All other goods not on the core list remain subject to the standard catch-all control framework — which itself was tightened in October 2025.

"Informed" Export License Requirement — Including Group A Countries:

Previously, exports to Group A countries (Japan's designation for trusted allied nations including the United States, United Kingdom, EU member states, Australia, Canada, and others) were largely exempt from catch-all export license requirements. The October 2025 amendment introduced a new "informed" condition: if METI notifies an exporter that a specific transaction to a Group A country may result in unauthorized re-export to a restricted third country — such as Russia or North Korea — an export license becomes mandatory regardless of the destination country's trusted status.

This change was explicitly introduced in response to documented cases of goods being routed through third countries to circumvent Japan's Russia sanctions. A Russian company purchasing Japanese dual-use technology through a South Korean intermediary, for example, now triggers METI's notification authority even for the initial Japan-to-Korea leg of the transaction.

Practical implications for your trade company:

• Establish a formal export control compliance procedure from day one — including end-user screening, internal classification of your products against the Core Items and List Controls, and a transaction review process

• Screen all buyers, intermediaries, and known end users against METI's End User List (EUL) — which as of October 2025 includes 835 entities across 15 countries — and against international sanctions lists (UN, US OFAC, EU)

• Never rely on "this is a Group A country so I don't need to worry" reasoning for any goods that could have dual-use applications

• If you receive a notification from METI regarding a specific transaction, treat this as a hard stop — seek legal advice before proceeding

• Document your compliance process and decision-making on every transaction. In the event of an investigation, demonstrating a genuine compliance effort is critical to limiting penalties

Criminal penalties for FEFTA violations: Unauthorized export of controlled goods carries penalties of up to ten years imprisonment and/or a fine of up to ¥10 million for individuals, and fines of up to ¥1 billion for corporations. These are not theoretical — METI documented criminal convictions in 2024 and 2025 for unauthorized vehicle exports to Russia, including cases where Russian nationals were convicted as company representatives.

Sanctions Compliance — Russia, Belarus, Iran

Japan maintains active trade sanctions affecting the following as of early 2026:

Russia: Comprehensive trade sanctions covering a wide range of goods including luxury items, advanced electronics, vehicles above certain value thresholds, and goods with potential military application. The list of restricted goods has expanded multiple times since 2022. METI publishes a regularly updated Russia sanctions page including G7 Common High-Priority Items that are prohibited from export.

Belarus: Aligned sanctions similar to those applied to Russia.

Iran: As of September 28, 2025, Japan reimposed sanctions against Iran that had been lifted under UN Security Council Resolution 2231 in 2015. Export of goods listed in specific categories of the Export Trade Control Order to Iran now requires an export license from METI — without which export is prohibited.

Transshipment liability: METI is explicit: if goods are ultimately destined for a sanctioned country — even if routed through a third country — the destination is considered the sanctioned country under FEFTA. An exporter who ships goods to a South Korean buyer knowing or suspecting they will be re-exported to Russia is liable for the entire transaction under Japan's sanctions framework. This is not a theoretical risk — METI has publicly documented cases of companies convicted for exactly this conduct.

Step 6: Japan's Free Trade Agreement Network — Using It to Reduce Costs

Japan has one of the most extensive free trade agreement networks in the world. Understanding and using this network can significantly reduce import duty costs for goods you source from FTA partner countries.

Japan's active FTAs and EPAs (Economic Partnership Agreements) as of 2026 include agreements with:

CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership): Covers Australia, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, Brunei, and the United Kingdom (joined 2025). Eliminates or significantly reduces tariffs on an enormous range of goods between member countries.

RCEP (Regional Comprehensive Economic Partnership): Japan, China, South Korea, ASEAN nations (10 countries), Australia, and New Zealand. The world's largest FTA by economic size, covering approximately 30% of global GDP. Provides tariff reductions on a staged schedule across a wide range of goods categories.

Japan-EU EPA: Covers all EU member states. Eliminates tariffs on approximately 99% of EU goods exported to Japan and approximately 94% of Japanese goods exported to the EU over a phase-in period.

Japan-US Trade Agreement: A limited bilateral agreement covering agricultural products and some industrial goods. Note that a broader comprehensive Japan-US FTA has been under negotiation — monitor METI announcements for developments, as any new agreement would significantly affect trade flows in multiple categories.

Other bilateral EPAs: Australia, India, ASEAN (JAEPA), GCC countries (in negotiation), Switzerland, Canada, and others.

How to use FTA rates: To claim preferential tariff rates under an FTA, you must provide a Certificate of Origin (原産地証明書) or a self-declaration of origin (depending on the specific FTA's rules) with your import declaration. The certificate must be issued by an authorized body in the exporting country — for many FTAs this is the local chamber of commerce. Your customs broker will advise on the specific origin documentation required for the FTA applicable to your shipment.

Rules of Origin: Each FTA has its own rules of origin — criteria that define whether a product genuinely "originates" in the FTA partner country and is therefore eligible for preferential rates. Goods manufactured in a non-FTA country but re-exported through an FTA partner country typically do not qualify. Understand the applicable rules of origin for your product category before assuming FTA rates will apply.

FY2026 tariff changes: The Ministry of Finance has announced changes to Japan's tariff framework for FY2026 including the abolition of the exemption for personal imports valued under ¥10,000 from consumption tax, and the removal of the rule allowing import tax calculation at 60% of local price for individual imports. These changes primarily affect small personal import shipments rather than commercial B2B trade, but are worth noting if any aspect of your business model involves small parcel imports.

Step 7: Step-by-Step Import Procedures

Here is what actually happens when you import goods into Japan as a licensed trading company.

Phase 1: Pre-Import Preparation

Before any goods leave the origin country:

Verify product compliance. Confirm that your product meets all applicable Japanese certification and safety requirements for its category. Do not order goods until you are certain they can clear Japanese customs and be legally sold in Japan. The cost of returning or destroying a non-compliant shipment — plus the shipping cost both ways — vastly exceeds the cost of a regulatory review done in advance.

Classify your goods using the Harmonized System (HS code). Every import declaration requires an HS code — the internationally standardized product classification code that determines applicable tariff rates, import restriction status, and applicable regulations. Japan uses the HS nomenclature with its own sub-classifications. Misclassification is the most common customs error and can result in wrong duty payments, compliance violations, or inspection flags. Your customs broker will assist with classification, but understanding the likely HS code for your products before you start is good practice.

Prepare your supplier documentation. Ensure your overseas supplier can provide:

• Commercial invoice with full product description, unit prices, and total value in the agreed currency

• Packing list with detailed weight and volume information

• Certificate of Origin (if claiming FTA rates)

• Any product-specific certification documents required by Japan (test reports, conformity certificates, organic certificates, etc.)

• Bill of Lading (for sea freight) or Air Waybill (for air freight)

Phase 2: Shipping and Arrival

Incoterms: Agree on Incoterms with your supplier before the transaction. Common choices for Japan imports are CIF (Cost, Insurance, and Freight to Japanese port — supplier handles origin freight), FOB (Free on Board — buyer's freight forwarder takes over at origin port), and DDP (Delivered Duty Paid — supplier handles everything including Japanese customs). CIF is the most common for first-time importers from Japan's major trading partners.

Japan port of entry: Major import ports are Yokohama, Tokyo, Osaka, Nagoya, Kobe, and Fukuoka. Air freight clears through Narita, Haneda, Kansai International, and Chubu Centrair airports.

Arrival at the bonded zone (保税地域): Imported goods arriving at a Japanese port or airport are first moved into a bonded zone (hozei chiiki) — a customs-controlled area where goods sit while customs processing is completed. Goods in the bonded zone have not yet been released into Japan's domestic commerce.

Phase 3: Import Declaration and Customs Clearance

The import declaration (輸入申告) is filed through NACCS — either by your customs broker or directly if you are NACCS-registered. The declaration includes:

• HS code and product description

• Quantity and declared value (customs value)

• Country of origin

• Importer's details

• Any applicable FTA preferential rate claim with supporting Certificate of Origin

• Any product-specific import notifications or permits (food import notification, PSE registration documents, MHLW confirmations, etc.)

Customs examination: Japan Customs assesses the declaration and may request:

• Physical inspection of the cargo

• Additional documentation to verify declared value or classification

• Quarantine inspection (for food, plants, animals) — which requires coordination with the relevant quarantine authority

Customs value and duty calculation: Import duties are calculated on the customs value of the goods — for most commercial imports, this is the CIF value (cost + insurance + freight to the Japanese port). Applicable duty rates depend on the HS code, origin country, and whether an FTA preferential rate is claimed.

Consumption tax: In addition to customs duties, consumption tax at 10% is levied on all commercial imports. This is calculated on the customs value plus any applicable customs duties: (customs value + customs duty) × 10%.

Import permit issuance: Once examination is complete, duties are assessed, and all required permits and notifications are confirmed, Japan Customs issues the Import Permit (輸入許可証). This document is your authorization to move the goods out of the bonded zone and into domestic commerce. It is also an important business record — keep all import permits for at least five years for tax and compliance purposes.

Typical clearance time:

• Air freight: One to two days for straightforward commercial goods

• Sea freight: Two to three days for straightforward commercial goods

• Longer for goods requiring quarantine inspection, physical examination, or incomplete documentation

Step 8: Step-by-Step Export Procedures

Phase 1: Pre-Export Compliance Check

FEFTA screening: Before accepting any export order, screen the goods against List Controls and Catch-All Controls. Determine whether your product could be a Core Item. Screen the buyer and known end user against METI's End User List and international sanctions lists.

Destination country import compliance: You are responsible for ensuring your goods can be legally imported into the destination country. Research the destination's import regulations for your product category — applicable safety standards, labeling requirements, import duties, prohibited ingredient lists, and documentation requirements. What is acceptable in Japan may require modification for certain overseas markets.

Export license assessment: If your goods are on the List Controls or if your transaction triggers catch-all concerns, apply to METI for an export license before shipping. Standard license applications are processed within 90 days — though METI contacts applicants if processing will exceed this period.

Phase 2: Preparation and Shipping

Export documentation:

• Commercial invoice (売買契約書 or 商業インボイス)

• Packing list

• Certificate of Origin (if required by the destination country for customs or preferential duty purposes)

• Any product-specific export certificates (phytosanitary certificates for agricultural products, health certificates for food, quality certificates for manufactured goods)

• Export permit (if required under FEFTA)

Bring goods to the bonded zone: Like imports, export cargo is brought into a bonded zone at the port or airport before the export declaration is filed.

Phase 3: Export Declaration and Customs Processing

The export declaration (輸出申告) is filed through NACCS. Unlike imports, exports from Japan generally do not attract export duties — Japan does not levy export tariffs on commercial goods. The export declaration is primarily a statistical and compliance record.

Japan Customs may conduct a physical inspection of export cargo — less common than for imports but occurring for goods in sensitive categories or when irregularities in the declaration are noted.

Export permit issuance: After examination, Japan Customs issues the Export Permit (輸出許可証). This is the document your overseas buyer will need for customs clearance in the destination country and is an important compliance record for your FEFTA obligations.

Step 9: Key Licenses Beyond Customs — By Business Activity

Depending on your specific trading activities, additional licenses and registrations may be required beyond standard customs clearance.

Import/Export Agent License (Not generally required for principals)

Japan does not require a general import or export agent license for companies acting as principals in trade transactions — buying and selling on their own account. If, however, you are acting as a customs broker — filing customs declarations on behalf of third-party importers and exporters — you must employ a licensed Customs Specialist (通関士, tsūkanshi) who has passed the national Customs Specialist examination.

Most trade companies act as principals, not as customs brokers for others, and therefore do not need this. If your business model includes providing customs clearance services as an agent for other companies' imports and exports, ensure you have a licensed Customs Specialist on staff.

Liquor Import and Sales License (酒類販売業免許)

Importing alcoholic beverages for sale in Japan requires an Alcohol Sales License from the Regional Tax Office (税務署). This applies whether you are importing wine, spirits, beer, sake from overseas, or other alcoholic products. Processing takes approximately two months. Engage your tax accountant early in the process if alcohol is part of your import category.

Tobacco Import License

Importing tobacco products into Japan requires a license from the Ministry of Finance and coordination with Japan Tobacco International's licensing framework. Japan Tobacco International (JTI) has historical quasi-monopoly protections in the domestic tobacco market that significantly restrict new entry. This is a complex licensing area — seek specialist legal advice before pursuing tobacco imports.

Import of Controlled Substances

Importing pharmaceuticals, narcotics, psychotropic substances, or products containing controlled ingredients requires pre-approval from the Ministry of Health, Labour and Welfare. Japan's controlled substance framework is strict — certain ingredients that are legal in other countries are controlled in Japan. Always verify ingredient status before importing any health-related or chemical product.

Waste and Recycled Materials

Importing recycled materials, industrial waste, or certain recovered materials is subject to the Basel Convention implementation regulations in Japan and requires permits from METI and the Ministry of the Environment. Japan has specific controls on waste imports designed to prevent Japan from becoming a destination for overseas waste. Engage a specialist environmental lawyer if your trade category includes any recycled or recovered materials.

Step 10: Financing Your Trade Company

Working Capital Dynamics in Trade

Trade businesses have a specific working capital challenge: you typically pay for goods when you place the order or when they ship, but you collect payment from your customers after delivery — creating a funding gap that can range from 30 days to 90 days or more depending on your payment terms. At any given moment, a meaningful portion of your company's capital is tied up in transit inventory or receivables.

This cash cycle means that trade businesses require significantly more working capital than their monthly revenue figures suggest. A company generating ¥10 million per month in sales with 60-day average collection terms and 30-day average payment terms to suppliers has a permanent working capital requirement of approximately ¥10 million at all times — just to maintain current operations, before any growth.

Model your working capital requirements realistically before determining your capital needs. Under-capitalized trade businesses run out of cash mid-cycle and are forced to turn down orders they could have profited from.

Japan Finance Corporation (JFC)

The Japan Finance Corporation is the most accessible institutional lender for foreign entrepreneurs starting a trade company in Japan. Its new business startup loan products do not require collateral for qualifying amounts and are available to foreign residents with valid work authorization and a credible business plan.

JFC assessment focus for trade companies:

• Your sourcing relationships — supplier track record, supply contracts or letters of intent, sample shipments completed

• Your buyer relationships — customer letters of intent, purchase orders, or historical sales data if you have an existing business

• Your regulatory compliance preparation — evidence that you have identified and are addressing the applicable product certifications for your category

• Your team's relevant trade experience — prior work in international trade, customs, logistics, or your specific product category

• Your financial projections — realistic revenue ramp, cost structure, and working capital analysis

Indicative JFC terms (2026):

• Loan amount: up to ¥20–¥30 million for new business startup

• Interest rate: approximately 2%–3.5%

• Repayment term: 7–10 years with a one to two year grace period on principal repayment

• No collateral required for qualifying loan amounts

JETRO Grant and Advisory Support: The Japan External Trade Organization (JETRO) provides free advisory services to foreign companies establishing in Japan, including introductions to subsidies and grants available to importing businesses and those participating in specific trade promotion programs. JETRO's "Invest Japan" program is the primary entry point for foreign entrepreneurs.

Trade Finance Products

As your business grows and develops a track record, specialist trade finance products become available:

Letters of Credit (LC / 信用状): A bank guarantee that payment will be made to your supplier upon presentation of compliant shipping documents. Commonly used for large orders from new suppliers where both parties want payment security. Available through most major Japanese banks for established businesses.

Trade Finance Lines: Revolving credit lines secured against purchase orders or receivables, allowing you to fund inventory purchases without tying up all your equity capital. Typically becomes available after six to twelve months of operating history and requires a corporate bank account at the lending institution.

Factoring: Selling your receivables to a factoring company for immediate cash, typically at a discount of two to five percent of the receivable value. Available through specialist fintech providers in Japan and useful for smoothing cash flow when customers have long payment terms.

Step 11: Practical Operations — Building Your Trade Business

Identifying Your Product and Market

The highest-failure point for new trade entrepreneurs is starting with a product rather than a market gap. The most successful import-export businesses in Japan are built around the entrepreneur's specific market knowledge — a deep understanding of what a particular overseas market needs that Japan can supply, or what the Japanese market wants that a specific overseas source can provide.

For importing to Japan, ask:

• What products do you personally know are difficult to find or significantly more expensive in Japan than in your home country?

• What products from your home country have strong cultural or quality claims that Japanese consumers would value?

• Are there regulatory gaps you know how to navigate because of your home country expertise?

For exporting from Japan, ask:

• What Japanese products do buyers in your home country want but struggle to source?

• What Japanese-made categories have global demand that established Japanese exporters are not reaching efficiently?

• What market relationships do you already have in your target export destination?

Supplier Relationships in Japan

Finding Japanese suppliers who are willing to work with a new, small foreign-run trading company is one of the practical challenges of the export business. Japan's traditional business culture values long-term relationships and established trust — cold approaches to suppliers without introductions can be slow to develop.

Effective approaches:

• Trade shows: Japan hosts world-class trade shows across every product category — FOODEX Japan (food and beverage), Tokyo International Gift Show (lifestyle goods), Japan IT Week (technology), Interiorlifestyle Tokyo (home goods), and dozens of others. These are the most efficient environments for meeting suppliers face-to-face and establishing initial relationships.

• JETRO supplier matching: JETRO operates a formal buyer-supplier matching service that connects overseas buyers with Japanese producers. As a Japan-based trade company, you can access this matching service as the buyer.

• Prefecture export promotion agencies: Each of Japan's 47 prefectures has its own export promotion organization supporting local producers in reaching overseas markets. These agencies actively want to connect producers with reliable overseas buyers and are often more accessible than approaching producers directly.

• Industry associations: Most Japanese product categories have an industry association that maintains member directories and can facilitate introductions.

Overseas Buyer Development

Building your overseas buyer network is the mirror image of supplier development. Effective channels include:

• International trade shows in target markets: Attending food, lifestyle, or technology trade shows in your target export market as a Japan-based exhibitor builds visibility with local buyers directly.

• E-commerce platforms: For consumer goods, platforms including Amazon, Alibaba, Rakuten Global, and category-specific marketplaces allow initial market testing without heavy buyer development investment.

• B2B platforms: Alibaba.com (as a supplier), Global Sources, and Japan-specific international trade platforms provide lead generation for B2B buyers.

• Local importers and distributors: Finding established local distributors in your target market who can handle downstream customs clearance, warehousing, and retail distribution simplifies the logistics chain significantly compared to direct-to-consumer models.

Frequently Asked Questions

Do I need a specific import or export license to start a trading company in Japan? There is no general import or export business license required to trade goods in Japan. Any legally registered company can import and export. What matters is whether your specific product category requires additional approvals from sector ministries — PSE for electronics, Food Sanitation Act notifications for food, PMD Act approvals for cosmetics, FEFTA licenses for controlled goods. Start with the product, not with a blanket license search.

Do I need a customs broker, or can I handle customs myself? You can handle customs yourself through direct NACCS registration. However, for businesses starting out, using a licensed customs broker reduces errors and delays and provides valuable guidance on classification, duty rates, and product-specific requirements. As your volume grows and your team's customs knowledge deepens, moving to direct NACCS filing reduces per-transaction costs.

How does Japan's consumption tax affect my import costs? Consumption tax at 10% is applied to all commercial imports on top of any applicable customs duties. This is a cash flow item for your business — you pay it at import and recover it through the consumption tax return system when you file quarterly or annual consumption tax returns. Ensure you register for consumption tax (消費税登録) once your annual sales exceed ¥10 million, and track consumption tax paid on imports carefully for recovery.

Can I conduct trade entirely online without a physical office in Japan? The Business Manager Visa requires a genuine physical business address — a virtual office is generally not accepted. You need a real premises that serves as your registered business address. For a trade company with no customer-facing requirement, a small office or co-working space with a dedicated address registered in your company name is typically sufficient, and significantly cheaper than a dedicated office.

What is the most common reason new trade companies fail in Japan? Product compliance failure — importing goods that cannot clear Japanese customs or cannot be legally sold in Japan because of unaddressed certification requirements. This is followed by working capital miscalculation — running out of cash mid-cycle because the gap between payment to suppliers and collection from customers was not modeled accurately. Both are entirely avoidable with proper pre-launch preparation.

How long does it take to process a METI export license for controlled goods? METI's standard processing target is 90 days from receipt of a complete application. If documentation is incomplete, the clock stops while corrections are made — submitting a complete, well-prepared application is essential. For time-sensitive transactions, applying well in advance and maintaining communication with METI through an authorized representative is best practice.

Do I need separate licenses for different product categories? Yes. Product-specific approvals and certifications are category-specific. A company importing both food products and electrical goods needs to comply with both the Food Sanitation Act import notification requirements and the PSE certification requirements. There is no single trade license that covers all product categories. Build your compliance checklist per product category.

Quick Reference Summary

Japan's trade environment in 2026 rewards the entrepreneur who arrives prepared. The market access is genuinely open — no import or export license is required to start trading, the FTA network dramatically reduces tariff costs, and the quality premium that Japanese goods command globally is as strong as it has ever been. The complexity lies in the product-specific compliance layer and in the FEFTA export control framework, which has tightened meaningfully under the October 2025 amendments. Navigate both correctly and the business scales naturally from the quality of your product knowledge and your buyer and supplier relationships. Get either wrong and the regulatory consequences are severe.

The entrepreneurs who succeed in Japan's import-export space are not necessarily those with the deepest trade experience. They are the ones who take the compliance framework seriously before they place their first order — who verify product certifications before sourcing, who screen their buyers before shipping, and who build their working capital model around the actual cash cycle of the business, not optimistic assumptions about how fast customers will pay. Do those things right and Japan's trade market will deliver on its considerable promise.