Key facts
- Japan is reviewing its de minimis rule for imports.
- The current rule exempts imports under ¥10,000 from duties and taxes.
- There has been a surge in low-value shipments.
- Concerns exist about lost tax revenue.
- Concerns exist about unfair competition for domestic businesses.
Japan is currently reviewing its de minimis rule, a policy that exempts imported goods valued at ¥10,000 or less from customs duties and taxes. This consideration follows a substantial increase in the volume of these low-value shipments entering the country. The surge has triggered concerns among government officials and domestic industries regarding potential losses in tax revenue. Furthermore, there are worries about the impact on domestic businesses that face competition from these duty-free imports, creating an uneven playing field. The government is actively exploring options for revising the current threshold or implementing other measures to address these issues.