Shinsa, Japanese taxes and procedures

[Kevin]

Just to let you lot know the gist of a conversation that I had with Japanese Customs.

 

Swords are supposed to enter Japan by freight now. The following rules apply:

 

When goods are imported into Japan, regardless of purpose such as sale, a Customs duty as well as 5% of consumption tax will be imposed.

 

In general, customs duty for sword is 8.4%. Therefore, 8.4% customs duty and 5% consumption tax will be collected. If the sword is an antique which age exceeds 100 years, 0% customs duty can be applied as long as a certificate issued from authorities such as a government in export country.

 

So you need a certificate to get the lower rate of duty. OK, it doesn’t, in principle, matter whether 0% or 8.4% is applied as long as you can get your money back, though it does mean a larger outlay upfront.

 

If the items are re-exported within one year from the date of import, the import duty/tax can be refunded when requirements are met as Article 19-3 of our Customs and Tariff Law provides as follows;

 

(Refund of Customs Duty when Imported Goods are Re-exported in the Same Conditions as Imported)

 

Article 19-3. When the goods the customs duty on which has been paid in accordance with a Cabinet Order are re-exported from Japan without any change in nature and form at the time of their importation, the customs duty may be refunded, as may be prescribed by a Cabinet Order, if the said goods are to be exported from Japan within one year from the date of their import permit.

 

In order to apply this clause, prescribed procedures are required at the time of importation in addition to import declaration and at the time of re-exportation. Furthermore, importer (receiver) has to have a bank account in Japan for refund.

 

Hmm! So what are the procedures applied at the time of importation?

 

As procedures, it is necessary to submit, at the time of importation, two copies of the "Application for identification of goods to be re-exported" (one of which will be returned to the applicant by the customs after confirming identity), in addition to complying with regular import procedures. At the time of re-exportation, it is necessary to submit the import permit, two copies of "Application for duty refund (reduction) for the goods to be re-exported without change" in its nature and form and the "Application for identification of goods to be re-exported" which confirms identity at the time of importation in addition to regular export procedures. In some cases, you might be required to submit photos, brochures and the like concerning the goods so that customs confirm the identity between import goods and re-exported goods.

 

OK, you can get your money back if you are aware of this at the time and the proper procedures have been followed at the time of importation. However, there’s a rub – the refund has to be paid Japanese bank account, otherwise they can’t pay you.

 

Kevin

[gtstcactus]

Far out, it does not seem like an overly easy or inexpensive thing to do.

 

Sounds like a damn hassle!

 

That's a shame as IMO shinsa in Japan should be something that is accessible (without unnecessary red tape or cost) to anyone who owns Nihonto or Tsuba, or any other related bit's and pieces that they allow to be submitted for shinsa. I feel that it would contribute to the conservation / preservation of these wonderful pieces of Japanese history which should be the most important thing, regardless of where the current owner lives...

 

 

 

Jason

[Jean]

Jason,

 

Please sign with your name as per the board rules.

 

Customs are dealing with International trade and not with Nihonto so whether what they should be or not is irrelevant...

If you want to avoid any hassle go through an agent they are competent and can deal with the paper work.

 

Kevin thanks a lot for this post.