With the rise of cross-border e-commerce in Japan, the customs clearance method for imported goods has become one of the focuses of sellers. In Japan, there are two common customs clearance methods, namely IOR (Importer of Record) customs clearance and ACP (Customs Agent) customs clearance. This article will explore the characteristics, advantages and disadvantages of these two methods in depth to help sellers better choose the customs clearance method that suits their business.
IOR customs clearance: Importer of Record
The IOR customs clearance method requires the importer to register as an IOR (Importer of Record), that is, an importer of record. As an IOR, the importer is not only the buyer of the imported goods, but also the person responsible for import affairs. The IOR needs to ensure that the goods imported into Japan strictly comply with local laws and regulations, and bear the responsibility for paying the taxes and fees generated during importation. This means that the IOR has ownership of the goods and also bears the corresponding legal responsibilities.
ACP customs clearance: Customs Agent
ACP, or Customs Agent, is a customs clearance method suitable for individuals or companies that do not reside in Japan. In ACP customs clearance, the agent/company is responsible for assisting with customs formalities, including import and export declaration procedures, witnessing inspections, paying customs duties, receiving documents issued by customs, and receiving tax refunds. Unlike IOR, ACP does not have ownership of the goods and is not legally responsible for the goods in terms of tax payment and other work that requires cooperation.
Difference between IOR and ACP
The biggest difference between IOR and ACP lies in legal liability and tax payment. As an IOR, the importer owns the goods and is responsible for the legal liability of the goods, including ensuring compliance with regulations and paying the corresponding taxes. In ACP customs clearance, the agent only plays a management and agency role, mainly assisting in the formalities, and the responsibility for tax payment is still borne by the seller himself.
Registration process of ACP customs affairs agent
To become an ACP customs affairs agent, an individual or company needs to apply to the Japanese Customs. The registration process is relatively simple, mainly including filling out the “Tax Affairs Manager’s Book”, submitting a letter of appointment and company-related information, and submitting these documents to the customs for review. This makes it relatively easy for both individuals and companies to become holders of ACP qualifications. Choosing the right customs clearance method
When choosing a customs clearance method, sellers need to weigh the pros and cons of IOR and ACP. The IOR customs clearance method emphasizes full responsibility and is suitable for large sellers with actual import business experience and resources. The ACP customs clearance method is relatively easy and more suitable for start-ups or individual sellers, who can focus on the sales of goods and leave customs clearance matters to agents.
Summary
Japan’s two customs clearance methods each have their own advantages and disadvantages. Sellers should choose the appropriate method based on their own circumstances, business scale and experience level. Weighing legal responsibilities, tax payments and operational complexity will help sellers conduct import and export business more smoothly in cross-border e-commerce. Whether choosing IOR or ACP, sellers need to have an in-depth understanding of relevant laws and regulations to ensure smooth and compliant operations during the customs clearance process.