Freight between Thailand and Japan | Rates – Delay – Duties & Taxes

How to be exempted of duties and taxes for an import from Thailand to Japan ?

*Every single shipment you want to import into Japan has to go through customs for further controls.

Thanks to the agreements existing between both countries, you can easily be exempted of taxes for an import of goods from Thailand to Japan and vice versa. We are detailing you the process below. Also, we can take care of all the paperwork needed, thanks to our experience with customs in Asia. You only have to ask us.

Necessary documents

Import permit in Japan

First of all, when your goods have entered the Japanese territory you must receive an import permit in order to clear them. This begins by declaring yourself to the Director-General of Customs, by presenting an import declaration. This declaration is precising the value and the quantity of the goods you want to import. This document should be written while your goods are already in the Japanese customs warehouses. The import declaration should be made in triplicates.

Import Duties from Thailand to Japan

Thanks to the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP), more than 90% of the tariff barriers from Japan to Thailand or the other way have been suppressed. This eased the exports of agricultural products from Thailand to Japan as well as the exports of manufactured goods from Japan to Thailand.

Thanks to this, there has been a growth of investments between the two countries since 2003.

Certificate of Origin (CO)

The CO is the document recognised by customs witnessing of your good’s origin. It certifies that your items were produced in Thailand. Normally, it must be given by a notary public or a government. But, to benefit of the Free Trade Agreements that are existing between Thailand and Japan, your CO must be delivered by the Ministry of Commerce, or the Department of Foreign Trade of Thailand.

The Bill of Lading (BL)

The BL is one of the most important documents required to clear your goods. As the CO is certifying of the origin of your goods, the BL is witnessing of the payment transfer from the importer to the freight forwarder, and of the issuance of the LC (Letter of Credit).

Here is a detailed example of what a BL is containing:

1 = Shipper
2 = Consignee
3 = Notify party
4 = Vessel No.
5 = Port of loading / discharge
6 = Place of receipt / delivery
7 = Containers No.
8 = Goods description
9 = Net weight
10 = Dimensions / volume

Detailed statement on duties exemption

In Japan, you have to show testifying documents proving that there is agreements or FTAs exempting your goods of duties and taxes. As there is a Comprehensive Economic Partnership among Japan and the ASEAN countries, you must show parts of these documents in the aim of making it work.

Other documents

• The Licenses, Certificates… (if any)
• The customs duty payment slips (if your items are dutiable)
• The Insurance certificate (if any)

Duties and taxes in Japan

Japan is working with the Harmonized Tariff System (HTS), to identify products, like the majority of the countries.

Here is a detailed picture of what indicates an HS code:

To determine the HS code of your goods, if you still don’t know it, we advise you to search it on this website: Find HS code

You just have to write key words to describe your products. You can also enter a picture of your goods if you have. As an example, when you type “pineapple”, you will find the HS code 0804.30 as a result.

Now that you’re informed of the HS code corresponding to your, you can find what duties and taxes you should pay by following this link:HS Tariff in Japanese Customs

For pineapples, it will give you this information:

Now that we detailed the customs steps that you will undergo, let’s discuss the Trade bonds and relations that exists between Thailand and Japan.

Trade relations between Thailand and Japan

The JTEPA and the AJCEP, motors of the cooperation between the two countries

Trade flows and exchanges between Thailand and Japan have always been important through the modern history. As the ties between countries in east Asia are getting stronger, this business cooperation is meant to keep increasing. Thailand was the 6th export partner and the 8th import partner of Japan in 2017. For Thailand, Japan is the third export partner, with 10% of the goods exported going to Japan, and the second import partner, with 16% of the goods imported coming from Japan.  Both countries have signed several agreements to ease and improve trades between them.

A Framework Agreement was signed prior to all subsequent treaties in 2003. It aimed to implement comprehensive economic cooperation between Japan and the ASEAN. It was the Framework for Comprehensive Economic Partnership between ASEAN and Japan.

This agreement issued:

• The suppression or reduction of duties and taxes on products traded between the two territories,
• The liberalization of international trade in services
• Foreign direct investment
• Ease of customs processes
• Mutual recognition

Amongst them, two following agreements are more important. They were conducted as Thailand representing its own, but also being part of the ASEAN Community. Although they were not officially statused as Free Trade Areas agreements, they can be considered equally powerful.

The first treaty signed and effective between both parties since 2007, was the Japan–Thailand Economic Partnership Agreement (JTEPA). After 10 years of effectiveness, it resulted in the removal of 92 % of tariff barriers on imports from Thailand to Japan and 97 % of barriers on imports from Japan to Thailand.

Japan eliminated or incredibly reduced barriers on these key products:

• Prawn & processed prawn products
• Mango, mangosteen, durian
• Chicken & processed chicken products
• Tunas, in airtight containers
• All mining and industrial products

Thailand suppressed or heavily decreased tariffs on these key products:

• Apples, pears and Chinese yam
• Steel
• Automotive parts for production
• Motor vehicles for more and under than 3,000cc

The second agreement signed between ASEAN (Thailand) and Japan was the ASEAN-Japan Comprehensive Economic Partnership (AJCEP), that became fully effective in July 2017. This agreement was important for both parties because it allows to resolve litigates emerging from interpretation and application of the previous EPA. It also permits to strengthen trade, exchange and investments between Japan and the 10 ASEAN countries.

Japan’s main compromises were on:

• Salted eggplants
• Processed curry products
• Jellyfish

Thailand (ASEAN) main compromises were on:

• Peaches and grapes
• Flat TV and Flat TV modules
• Parts of the motor vehicles (Breaks…)

*As you can see, Japan is more in need of raw materials and agricultural products, when Thailand is needing manufactured or High-tech goods.

Summary

To sum up, Thailand and Japan have been great trade partners through modern history and are constantly multiplying their exchange and investments. Both countries are investing and emphasises on the quality of their infrastructures. As an archipelago, Japan has a long-time tradition of ports and water navigation. This explains why Thailand and Japan are greatly linked by sea routes. Less used than sea navigation, airports and air freight are still effective between the two countries, with numerous international airlines linking them. To increase the trades between them, the two countries eased their customs processes drastically and reduced tariff barriers on a huge number of product lines. This was established in agreements between Japan and Thailand, but also between the ASEAN and Japan.

Our decade of expertise on the two countries, and more largely on the Asian continent, permit us to deliver tailor made freight solutions at very competitive rates. Do not hesitate to contact our dedicated staff for more information about your transfer, we’re always happy to serve and spread knowledge!