• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 7/23/2013

Japan - Customs valuation measures, other provisions clarified 

July 23:  The customs valuation rules in Japan have been clarified and reflect the transposition of principles from the GATT Agreement into Japanese customs law.

Among other provisions, the new measures establish the customs valuation method applicable in Japan (with an April 2013 effective date). Other measures provide:

  • That the use of the transaction value methodology is restricted to resident entities
  • An enhanced focus on recordkeeping
  • Provisions allowing both customs officials and importers to request an extension of time when there are certain “emergency” circumstances (e.g., the March 2011 earthquake)
  • Clarification of the definition of “buying commission” to include consideration paid for business duties of an agent representing the buyer
  • Updated analysis of intangibles to consider the circumstances of the import transaction and whether the payment was made in order to enter into the transaction
  • Clarification that “contract manufacturing” (toll manufacturing) can be treated as an import transaction and valued under the transaction value method
  • Clarification concerning assists for goods or services provided at a discount or free-of-charge
  • Clarification concerning the manufacturing costs used to determine the taxable value under the Japanese domestic selling price / cost of production method

Read a 2013 report [PDF 139 KB] prepared by the KPMG member firm in Japan: Amendments to Customs Valuation Law in Japan (Effective as of 1 April 2013)

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