Customs Tariff and Taxes
Japan’s tariff is on average one of the lowest in the world, approximately 2%.
Japan grants most-favoured-nation (MFN) or preferential treatment to a country or territory that
meets one or more of the following criteria
- it is a Member of the WTO;
- it is covered by a provision of the Cabinet Order under Article 5 of the Customs Tariff Law;
- it has a bilateral treaty with Japan
Japan is a signatory to the WTO Information Technology Agreement which has agreed to eliminate
tariffs on most of the information technology products. In addition to customs duties, a consumption
tax of 8% is levied on a wide range of goods and services. Additional taxes are levied on imported
liquors and tobacco products. Though tariffs are generally low, Japan has barriers that impede
imports of alien products in the country, viz. technical standards unique to Japan, requirement of prior
experience, regulations favouring local produced products, formal and informal cartels, and cultural
and personal relationships, etc.