The customs valuation regulation has been changed in Japan. The valuation is based on the transaction value in line with World Trade Organization (WTO) rules but the change in the regulations clarifies the issue of which particular transaction is to form the basis of this valuation.
The regulations now establish that the buyer in an import transaction should be a resident of Japan. This means that the customs valuation cannot be based on a transaction between two non-residents (often referred to as the “first sale”) but must be based on the transaction that involves a Japanese resident importing the goods into Japan.
Japan has made an adjustment to its Customs Tariff Act from 1 April 2013. Japanese customs authorities now consider that the correct sales price is the one referring to “the last sale in a chain of commercial transactions”. This would be the final sale to the Japanese resident importer.
