Import From Japan to the UK - Complete Business Guide

Japan has a reputation for building high quality, innovative goods, particularly when it comes to electronics, cars and similar items. If you’ve spotted a market for items from Japan you’ll need to look into the rules, duties and taxes that apply when you import from Japan to the UK.

This guide to importing from Japan to the UK covers an overview of all the important details. We’ll also introduce Wise Business which offers a powerful multi-currency account you can use to make low cost, fast and efficient JPY transfers when it’s time to pay your Japanese supplier.

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Importing from Japan to the UK - FAQs

In 2020, the UK signed a free trade agreement with Japan to cover post Brexit trade^¹. In a few cases, the tariffs that apply when importing goods from Japan to the UK have changed since we were EU members, often eliminating or reducing the taxes applied on popularly traded goods.

To benefit from preferential rates of import duty you’ll usually need to prove the origins of the goods you’re bringing into the country. This can mean preparing slightly more paperwork when importing from Japan compared to some other countries - if in doubt, get a freight forwarder to help to make sure you pay the correct duties.

Do I need a licence to import goods into the UK?

You might need a licence to import goods from Japan to the UK - the rules which apply vary depending on the type of items in question. Licences are usually needed for specialist products like chemicals and medicines, items where there are safety requirements, such as foods and animal products, and anything dangerous to ship, sell or store. Full listings of the items which require a licence, certificate or safety checks are available online^².

Here’s an overview of the usual process for importing goods from Japan to the UK:

1. Apply for an Economic Operators Registration and Identification number (EORI number)^³
2. Check the business you’re buying from can export to the UK
3. Get the commodity code for your goods
4. Work out the value of your goods for duty and VAT purposes
5. Check if you need a licence or certificate for your goods
6. Check the customs duty rules based on the import type
7. Check labelling and marketing rules for items like food and manufactured goods
8. Complete the customs declaration and ship your goods
9. Claim a VAT refund

EORI numbers are another thing that have changed since Brexit. You’ll need an EORI number beginning with GB to import from Japan to England, Scotland or Wales - if yours doesn't fit the description you’ll need to apply for a new one.

You can also learn more about how to get an import licence in the UK and get pointers on how to start an export business in the UK in our handy guides.

What does the UK import from Japan?

About 7,000 UK businesses import to the UK from Japan^⁴, with imports of cars alone worth 1 billion pounds a year. Other vehicles are another important import by volume, along with electrical items and metals.

How do I ship goods from Japan to the UK?

The most common way to ship goods from Japan to the UK is by sea. This takes some time, but is a cost effective choice suitable for loads of all sizes. If you’re in a hurry or have highly time sensitive items to deliver, air freight may also be an option - this is much quicker, but also much more expensive.

How much does it cost to ship from Japan to the UK?

The costs of your shipment can vary a lot depending on how you arrange it. Smaller items sent by parcel mail could be relatively cheap - but sending an entire container by sea will cost a lot more. The good news is that many freight forwarding companies can offer a free no obligation quote if you give the details of your delivery needs. Include the volume, weight and value of your items to learn how much delivery will cost.

How long does it take to ship from Japan to the UK?

Sea freight from Japan to the UK is likely to take around 40 days⁵ for the actual journey, plus a few extra days either side to load goods, clear customs, unload and drop off at their final delivery point. Air freight - as you’d expect - is much quicker. You can get your items to the UK within a day, although you’ll need to build in a little longer for customs clearance.

Is there import tax from Japan to the UK?

There may be an import tax to pay when you ship items from Japan to the UK for commercial resale. As we mentioned earlier, the free trade agreement with Japan meant that some tax rates changed relatively recently. To see what the rate of duty is on your specific item, you’ll need to check the commodity code⁶ which will then be linked with an import tax rate, shown as a percentage. Calculate the amount you have to pay, based on this percentage and the value of your shipment.

How to import from Japan - Step-by-Step

Many businesses use a freight forwarder or agent to import to the Uk from Japan. This can help smooth the process, including dealing with language barriers and relatively complicated customs and shipping arrangements. Here are a few other considerations for importing from Japan to the UK.

Finding and choosing a Japanese supplier

The way you go about finding a Japanese supplier may depend on the type of item you want to import. There are lots of good websites you can use for research - similar to Alibaba but with a focus on Japanese suppliers.

Check out Superdelivery as one option to get a feel for the items and prices available. You can also get word of mouth recommendations if you know other people from the UK trading with Japan already.

Another way of finding suppliers for a specific product or industry is to attend trade fairs in the country you intend to buy from. This means flying to Japan, and visiting a trade fair where you can check the products first handed, get to know suppliers in person and even negotiate better deals. To discover Japanese trade fairs you can check the Jetro Database.

If you decide to visit a trade fair in Japan, Wise Business debit card can be a great way to spend in Japanese Yen with ease.

You can pay in JPY with your Wise Business card even if you don't have a JPY balance on your multi-currency account. Wise smart technology will convert your spending automatically to GBP with the mid-market exchange rate. What is even better? You earn 0.5% cashback on your purchases.

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Before you choose a supplier make sure you’ve seen samples of the items you’re buying and discussed the terms of the deal in detail. Get a translator if you need to, to make sure there are no surprises.

Negotiating payment terms

To complete your arrangement with your Japanese supplier you’ll need to negotiate and agree payment terms - usually using international incoterms^⁸ to cover things like who will pay for transport and duties, and at what point the items are the full responsibility of the seller.

When you’re buying from an overseas supplier you’ll likely pay in their home currency - so Japanese Yen in this case. To get the best deal you need to make sure to get a fair exchange rate when you convert GBP to JPY for this payment. Wise Business can help. You’ll be able to exchange from GBP to JPY with the mid-market exchange rate with low fees from 0.42%. More on that in a moment.

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Arrange transport from Japan

Transport from Japan is commonly by sea - taking about 45 days in total as long as there are no hold ups at customs. You can also choose to send your items by air but this is much more expensive so usually only an attractive option when it’s an urgent delivery.

Preparing customs declarations

To import from Japan - particularly if you’re looking to get preferential tax rates under the free trade agreement - you’ll need to prepare a lot of documentation in advance. A freight forwarder or customs agent can help with this. You’ll usually be asked for a suite of paperwork including:

• A bill of lading
• A commercial invoice
• A packing list
• A certification of origin
• Import licence if required

You’ll also need your EORI number starting with GB to import to England, Scotland or Wales.

Pay Japanese suppliers with Wise Business

Wise Business offers low cost international payments you can use to pay your Japanese suppliers quickly^⁹ and with the mid-market exchange rate.

Wise Business account also lets you hold and exchange 40+ currencies including JPY, and offer local bank details in a selection of major currencies to receive payments from customers. Use your account to pay and get paid in foreign currencies, and unlock time saving tools like batch payments and cloud accounting integrations, too.

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Use this guide to get started with importing from Japan to the UK - and remember to check out Wise Business for easy ways to pay your suppliers in yen, using the mid-market exchange rate and low, transparent fees.

Sources used in this article:

Sources last checked March 25, 2024