Tariffs are administered by the Customs and Tariff Bureau of Japan's Ministry of Finance. Japan's preferential system of tariffs grants lower or duty-free rates to products imported from developing countries. A simplified tariff system for low-value imported freight valued at less than 10,000 yen, such as small packages for personal imports, simplifies determination of tariff rates and eliminates the extra time necessary to determine the type of product and precise value and minimizes customs brokers' handling charges. Importers can choose either the normal rate or the simple tariff, which could be higher or lower. It is possible to obtain an advance ruling on tariff classification and duty rates from Japanese Customs.
Payment is required at the time of import declaration.
The consumption tax is assessed on the CIF value of the product plus the import duty. Duties and consumption tax are payable when making an import declaration at the time of customs clearance by the importer. Packages containing items with a value of 10,000 yen or less are exempt from duty and the consumption tax with the exception of certain products such as leather goods, some knit products, etc. Japan is well known for having a large arsenal of means by which non-Japanese products are either effectively kept out of the market. Also, discriminatory official regulations can favor domestic products.