Representative Matter 003

Supporting a Chinese E-commerce Company Selling on Amazon Japan Through an ACP Structure

Client Profile

  • Parent company: China
  • Industry: Computer peripherals and consumer electronics
  • Business model: Cross-border e-commerce
  • Sales channel: Amazon Japan

Background

The client sold products to Japanese customers through Amazon Japan.

As import volumes increased, the client wished to establish a more efficient Japanese tax structure and recover Japanese import consumption tax paid at customs.

Client's Objectives

The client wished to:

  • Appoint an Attorney for Customs Procedures (ACP)
  • Become eligible to recover Japanese import consumption tax
  • Establish an appropriate Japanese consumption tax compliance framework
  • Receive ongoing support for Japanese tax filings

Key Challenges

Recovering Import Consumption Tax

Without an appropriate customs and tax structure, foreign companies importing goods into Japan may be unable to recover import consumption tax paid at the time of importation.

The client wanted to establish a structure that would allow recovery of this tax through the Japanese consumption tax system.

Understanding the Entire Import Structure

Providing ACP services required more than completing customs paperwork.

It was necessary to understand the client's overall import and sales structure, including:

  • overseas shipments
  • customs clearance
  • Amazon Japan sales
  • Japanese consumption tax reporting
  • import consumption tax recovery

A comprehensive understanding of the client's business model was essential.

Our Support

Our engagement included:

  • Acting as the client's Attorney for Customs Procedures (ACP)
  • Advising on the Japanese import and tax structure
  • Supporting Japanese consumption tax registration
  • Preparing Japanese consumption tax returns
  • Advising on the recovery of import consumption tax
  • Providing ongoing Japanese tax compliance support

Outcome

By appointing us as its ACP, the client became eligible to recover Japanese import consumption tax through the Japanese consumption tax system.

We continue to provide ongoing tax advisory and compliance services.