The tobacco market in Japan registered a slight current value growth last year, which is an improvement on the CAGR (compound annual growth rate). In 2016, convenience stores continued to be the largest distribution channels for cigarettes, raising the share of the entire category value due to long opening hours and accessible locations. In this article, our company formation consultants in Japan cover a few important aspects related to selling tobacco products in Japan.
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Tobacco imports in Japan
Everybody who intends to import tobacco goods in Japan, like cigarettes and cigars, in order to sell them must file a registration request as a Specified Wholesaler at the Ministry of Finance.
When a business starts importing tobacco as accompanied or unaccompanied items for personal use and the quantity is bigger than the tax-free allowance, a certain customs duty and others are charged.
Our company registration advisors in Japan can provide further details on what these duties and fees consist of.
Tobacco tax in Japan
In Japan, a tobacco tax is applied on manufacturers of tobacco goods or to those which have withdrawn tobacco goods from the bonded zones.
This tobacco tax is calculated depending on the number of cigarettes shipped from manufacturing factories or withdrawn from the bonded areas in the country.
The tobacco tax rates are JPY 3.552 per one thousand cigarettes (JPY 5.302 per one thousand cigarettes since 2010.) Our Japan company formation executives can offer further information on how the tobacco tax is calculated, as well as assistance in setting up a tobacco company in Japan.
Manufacturers of tobacco goods have to file a return with the Director of the Tax Office which states the tax base quantity of tobacco and the tax amount for every class.
These manufacturers have to file the return and acquit the tax by the end of the following month after the shipment of the goods from the factories has been effectuated.
An entity which withdraws tobacco goods from the bonded zone also has to file a return with the Customs-House and acquit the tax prior to withdrawing the products from the bonded zone.
For further information related to selling tobacco goods in Japan, or for help in opening a business in this country, please contact our friendly company formation representatives in Japan.
Foreign investors in Japan can choose to remain in the country for long-term purposes in order to run their company. If this is the case, our team will give you detailed information about the requirements for Japanese residency, which include but are not limited to being able to show that one has sufficient financial means to remain in the country. You can reach out to us for more information.