Business opportunities
Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.
In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Business hours in Japan:
- Business hours are Monday to Friday from 9.00am to 5.00pm with one hour for lunch, usually 12 midday-1.00 pm, which is strictly observed
- Breakfast meetings before 9.00am are not usually possible, although meetings after 5.00pm are more common
- Most large companies will not meet on Saturdays but some medium to small sized companies will accept meetings on Saturday, although this should not be taken for granted
- Retail stores operate from 10.00am to 7.00pm and are open all day on Saturday and Sunday
Business practices:
- Business etiquette and practices are important in Japan. The Japanese are extremely polite and place importance on respect and social rank. You will be showered with elaborate compliments while your host remains humble and plays down their achievements. Australians who show modesty will be well regarded by Japanese people.
- While business meetings during the day can seem to be slow and often skirting key issues, night time drinking and dinners are often the time when more useful information is fed back to you. The Japanese equate being indirect with being polite. Thus being indirect, such as starting a business meeting with ‘small talk’ will help to get the meeting off to a good start. Australians can misunderstand this indirectness and interpret it as indecisiveness or non-commitment from the Japanese side. In these situations, it pays to be patient.
- English is not widely spoken in business and government, with some exceptions, such as in trading companies. If a meeting is conducted in English, be sure to speak slowly and clearly, and do not use Australian idiomatic expressions or humour. Meetings in English are rare and an interpreter is generally required.
- Punctuality is a must in Japan. It is usual to arrive at a meeting at least five minutes before the appointed time. In the event that you are running late, it is polite to call ahead to advise of when approximately you will be arriving. All appointments should be arranged with companies prior to your arrival in Japan.
- Partners - it is inappropriate to take friends, spouses, or children to business meetings in Japan. It is also not common for spouses to be invited out for business dinners.
- Product brochures and a company profile should be taken with you when you visit a Japanese company for the first time.
- Business cards are handled in both hands and laid carefully on the table. You will need to bring at least 100 business cards with you to Japan. Business meetings invariably begin with the exchange of business cards. Don't place the card in your pocket or write on it. If time allows, have your business cards printed with your company name and name in Japanese. Don't have your business address translated to Japanese as this renders it meaningless.
- Seating arrangements is used in formal business meetings. The most important guest sits furthest from the door and the host sits closest to the door. If in doubt, wait to be seated or ask where you should sit.
- Gifts are not necessary and it is inappropriate to offer expensive gifts, particularly on first meetings. Small gifts, such as company pens or ties, etc. can be presented, once business is ready to commence or has commenced. It is generally considered impolite to open gifts in front of the giver.
- Resolving conflict – Japanese people also try hard to avoid open conflict and so may answer ambiguously or even agree to an offer that they have no intention of accepting. One productive way of solving this problem is to prepare a brief but clear memo describing the situation and obligations of both parties and present it to the Japanese side as a record of the meeting. This will test the Japanese side’s position on the issue as they will be forced to respond.
Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
Import restrictions
Potential exporters to Japan should not be deterred by a widely perceived view that the Japanese market is closed and heavily regulated. Barriers to market access for merchandised and value added goods are mainly informal. Examples of informal barriers include, successful entrance into business networks, maintenance of market presence and product quality assurance.
Formal restrictions - mostly on agricultural produce - do exist, and the Australian Government has a range of market access issues, which it continues to work on with the Japanese Government on behalf of Australian industry. Like Australia, customs laws and regulations, and import processes are strict and need to be clearly understood by exporters.
Import licensing may be required for some imports. Two categories exist:
- Import Quota (IQ): Quotas set by Ministry of Economy, Trade and Industry (METI), range from moderately to severely restrictive. Quotas are imposed on a variety of foods including some dairy products, seafood, cereals and grains. Importers must obtain an import quota allocation certificate from METI, which entitles the importer to receive an import licence on application to a foreign exchange bank.
- Import Declaration (ID): a wide range of raw materials, semi-finished products and manufactured goods can be imported without prior approval from METI. Completed ID forms are freely verified by authorised foreign exchange banks on application, prior to import.
Goods must be cleared through customs within the validity period of the licence (usually six months).
Imports from Australia, which includes most fresh fruits (excluding certain oranges, mangoes, blueberries, Fuji apples, pineapples and green bananas) are subject to restrictions (see also 'Public health requirements' below).
Tariff
Tariffs are based on the Harmonised System - most duties are ad valorem (per cent) based on the GATT valuation system approximately cost, insurance and freight (CIF) value (‘Incoterms 1990’).
Japan has low or zero tariffs on most industrial products.
Japan maintains tariffs and restrictions on some agricultural items, which are relevant to some Australian exporters.
Australian products are entered at the lowest rate notified (preferential rates excepted). Generalised preferences are granted to developing countries.
A ‘self assessment’ system designed to expedite customs clearance allows prior calculation of duty by importers.
Customs authority contact details:
Director General Customs and Tariff Bureau Ministry of Finance 3-1-1 Kasumigaseki Chiyoda-ku Tokyo 100 Tel: +81 3 3581 4111 Fax: +81 3 5251 2122
Packing, marking and labelling
Use of straw packing materials is prohibited.
Proposed packaging should be cleared with importers as they have definite preferences.
Goods should be marked according to normal commercial practice.
Foodstuffs must have a sticker attached to each package after importation showing a detailed description of contents, including artificial colourings or preservatives, name and address of importer and date of import or manufacture in Japanese.
Many food products and consumer products are subject to very specific labelling requirements and importers should always be consulted on proposed labelling.
Containers of canned and bottled goods, soft drinks, small goods, frozen foods and prepacked foods must be marked and labelled solely in metric measurement by the Australian exporter, even though responsibility for metric measuring rests with the Japanese distributor.
Drug usage directions should be printed in Japanese.
Special labelling regulations apply to electrical appliances, soap, aluminium foil, some kitchen utensils, cleaning materials, toilet and bath fittings, plastic film, certain furniture, hot water bottles and cosmetics.
Insurance
Normal commercial practice.
Methods of quoting and payment
No legislative requirements.
Quotations in Australian dollars are common.
Methods of quoting and payment depend on type of product, quantity and relationship established between exporter and importer.
Advance payments may be made for some imports.
Public health requirements
Strict controls govern the manufacture and sale of both fresh and preserved foodstuffs.
All imports of food must be accompanied by a food import permit, issued by the Food Sanitary Inspection Service of the Ministry of Health and Welfare. Foods may also be subject to inspection on arrival.
When imported for the first time, a description of all ingredients and the manufacturing processes involved will be required for application, along with any other requested documents, eg. health certificates from the country of origin.
The use of certain substances such as food additives are either strictly controlled or prohibited. The use of other food additives is strictly controlled.
The use of chemicals whose residue remains in crops or soil or pollutes water is strictly controlled.
Imports of animals and plants and their products require health certification issued by an approved authority in the country of origin. In Australia, this is usually the Australian Quarantine and Inspection Service (AQIS), Agriculture, Fisheries and Forestry-Australia (AFFA) or the relevant state department of agriculture.
Under Japanese quarantine regulations Australia can supply green bananas, mangoes, lemons, pineapples and certain oranges and many vegetables (basically those which do not contain seeds). Recently, blueberries and Fuji apples from Tasmania have been approved for export to Japan.
A larger range of fruits and vegetables from Tasmania can now be imported into Japan, as it is now recognised that Tasmania is free from fruit fly.
The official reference for importing and distributing drugs in Japan is the Pharmaceutical Affairs law. Manufacturers or importers intending to manufacture or import drugs, medical equipment, cosmetics and toiletries need to obtain approval in accordance with the Pharmaceutical Affairs law.
If cosmetic products contain ingredients outside the Comprehensive Licensing Standards, the approval of Minister of Health and Welfare will be required to import those products.
Documentation
Fax signatures are not permitted. Note: Even minor typing and other errors in documentation often result in serious delays and complications at point of entry.
Pro-forma invoice
No special requirements.
Commercial invoice
A minimum of three copies are required. Invoices must be signed by the supplier and should include the following details:
- marks and serial numbers of packages
- description and quantity of goods
- CIF value (Incoterms 1990)
- place and date of preparation
- destination and consignee
- name of vessel
- import licence number
- conditions of contract relating to determination of the value
It is strongly recommended, whenever possible, to include the HS Commodity Classification of the goods to be imported. Complete invoices and packing lists should be forwarded promptly to the importer by airmail, (see also 'Tariff' - self assessment system, above).
Certificate of origin
Required for goods eligible for concessions granted under GATT.
Normally issued by Japanese consular or diplomatic officer at place of production, purchase or shipment. Certificates issued by Customs, other government agencies or an approved authority (see 'Guidelines', section 2.3) are acceptable. These must also be signed by the exporter.
Certificate must show origin, marks and/or numbers of commodities, description and number of packages and must certify that commodities were produced in stated country of origin.
Bill of lading
For goods dispatched by sea, minimum of three signed originals and two unsigned copies are required.
For goods sent by air, standard sets of 10 are available (original plus nine copies) but no strict rules apply.
If made out To Order, it should indicate the name and address of the person to be notified.
Information required is usually specified in importer's letter of credit but should include name of shipper, ultimate and intermediate consignees, marking and number of packages, and description of goods with gross weights and measurements in metric terms.
Certificate of insurance
A certificate may be required if customs clearance without invoice is requested (to assist in appraisal of taxable value/quantity). In such circumstances other documents covering transportation cost, premium specifications and price list etc., may be required.
Packing list
Two copies recommended, indicating details of goods, including the weight and measurement of each package.
Special certificates
(see also 'Public health requirements' above)
Animals, plants and their products require health certificates issued by an approved authority in the country of origin.
Frozen vegetables and fruit must be accompanied by a certificate of condition (Form E46) instead of a phytosanitary certificate.
Meat for human consumption require an additional certificate, issued by an approved authority in the country of origin, stating that the animals were free from designated infectious diseases prior to slaughtering and that subsequent processing was under hygienic conditions.
Imports of food require a food import permit issued by the Ministry of Health and Welfare.
Spirituous beverages may require a certificate of age.
Electrical appliances must conform with the Electric Appliance Control Law, with certain goods requiring type approval before being permitted to be offered for sale in Japan.
Machine tools under a year old must be accompanied by a certificate of date of manufacture.
Taxation
You should seek professional advice on taxation is it applies to foreign companies and operations in Japan. The major international accounting companies operate in Japan and have English-speaking staff. A five per cent consumption tax is levied on all purchases in Japan including food. Some hotels charge 8-10 per cent service tax on accommodation. Businesses operating in Japan will be subject to a range of taxes including:
- corporate tax
- income tax
- withholding tax
- local tax
- residents tax
Liquor taxes, expressed in specific terms per quantity, are levied on beverages, whether imported or domestically produced.
Excise tax is levied on tobacco imports.
Business travel
Japan could rightly claim to have one of the most efficient and comprehensive transport networks in the world. Trains, buses and taxis form the backbone of the network. Japanese transport prides itself on running on time.
Within the city limits, the train or subway is the most efficient means of travel. Despite most train services stopping at midnight, they are convenient, readily accessible and cheap. It is worth obtaining subway and overhead train maps in English, which give you a comprehensive list of stations. Visitors who plan to use the subway system extensively during their visit are recommended to purchase prepaid subway tickets (valued at 1000 or 3000 yen). These tickets mean that travellers do not need to work out the exact cost of each subway journey as the ticket gate automatically deducts the value until the full value of the ticket is consumed.
As train stations in Japan have many stairs and limited storage space, small, compact luggage, preferably on wheels, is recommended for your visit. Should you need to transport large parcels between cities or out to the airport, the parcel delivery service or takkyubin offers a convenient alternative to carrying parcels yourself. Most hotels and convenience stores can assist you arrange a takkyubin pick-up.
For first-time visitors, taxis may be easier to use for short journeys. Flag fall in Tokyo and Osaka is approximately A$10 and less in some regional centres. Be aware that taxi doors open and close automatically.
Driving a car in Japan is not recommended, as streets are generally narrow, confusing and crowded.
Japan Rail (JR) Passes allow free access to all JR train, bus and ferry services including the Bullet Train. For long distance travel, the best alternative to air travel is the Bullet Train. As the cost of the Bullet Train does not differ significantly from air travel, it is recommended that business travellers purchase a JR Pass in Australia from a travel agent before they arrive. JR Passes are valid for seven, 14 and 21 days and start at around A$300. As a return Bullet Train trip between Tokyo and Osaka costs over A$300, the JR Pass is a very economical way to travel around Japan. The following sites provide timetable and logistics information:
Tokyo
Narita International Airport is located 66 kilometres from Tokyo’s city centre. There are two main transportation choices into the centre of Tokyo - a limousine bus service and the Narita Express Train. Taxis are available but will cost A$350.
The Limousine Bus leaves every 10-15 minutes from outside the departure hall for major Tokyo hotels and the Tokyo City Air Terminal (TCAT). Tickets are available from a booth in front of the exit from the customs hall. One-way travel costs approximately A$50 and takes about 90 minutes, depending on traffic. The Narita Express Train (N"EX):
- Runs every 30 minutes in peak from the basement of the Narita terminal to Tokyo, Yokohama and Shinjuku stations.
- Is fast and efficient, taking 53 minutes one-way to Tokyo and 90 minutes to Yokohama.
- Tickets start at around A$50 for the one-way trip.
- Tickets can be purchased at the Japan Rail (JR) counter under the airport terminal (all seating is reserved).
- JR Pass holders can use their pass to reserve tickets on this train.
- Tickets to Narita International Airport can be purchased at any JR Reservation Ticket Offices at train stations or at local travel agencies.
Osaka
From Kansai International Airport to Osaka city, there are three good transportation options:
- Nankai train, which takes 29 minutes and costs 1300 yen.
- JR services including the JR Kanku Kaisoku (Kansai Express) Train which takes 63 minutes from the airport to Osaka Station and costs 1160 yen and JR Haruka Kansai Airport Express which takes around 40 minutes from the airport to Nishikujo Station and costs 2820 yen.
- Limousine Bus, which takes 65 minutes and costs 1300 yen and goes to many of the major hotels.
Taxi is not recommended because of the cost (around A$260). Note that passengers travelling overseas from the Kansai International Airport are required to pay the Passenger Services Facilities Charge (PSFC) in cash (credit cards are not accepted) through a vending machine prior to passing through customs. The charge is 2650 yen per person.
Fukuoka
Fukuoka International Airport is located only four kilometres from the CBD.
There are three domestic terminals and an international terminal located separately, so check in advance which terminal you will depart or arrive from.
Fukuoka is currently not serviced by any direct flights from Australia, however, there are convenient interconnecting domestic flights.
A taxi from Fukuoka Airport to Hakata Station (main train station for Fukuoka) takes around 10 minutes and costs around A$14.
A taxi to Tenjin (the CBD) takes 20 minutes and costs around A$25.
The subway running under the station offers convenient transport to Hakata Station in around five minutes at a cost of 250 yen and to Tenjin Station in around 10 minutes at the same cost.
Hakata Station in Fukuoka is the terminus of the bullet train service that runs from Tokyo and Osaka. The journey is relatively long - five to six hours from Tokyo and two to three hours from Osaka.
Nagoya
Most Australian business people visiting Nagoya arrive at either Nagoya Airport on the daily direct Qantas flight from Australia or at Nagoya Station on the Shikansen ‘bullet train’ from elsewhere in Japan. The cheapest way (870 yen one-way) of getting between Nagoya and the airport is to use the Meitetsu Airport Limousine Bus. The bus leaves approximately every 10-15 minutes from the Meitetsu Bus Station, which is located adjacent to Nagoya Station. A taxi to the city from the airport costs about 6000 yen. If you arrive by Shinkansen bullet train, Nagoya station is only a short taxi ride from most of the major hotels and the CBD. Alternatively, the subway in Nagoya is an easy way to get around the centre of the city.
Sendai
Sendai’s international airport is serviced by Continental Micronesia (via Guam), Asiana Airlines (via Seoul), Dragon Airlines (via Hong Kong). The airport is within taxi distance from Sendai’s CBD and there is an airport bus which takes around 40 minutes to reach Sendai Station.
Sapporo
Numerous flights connect Sapporo with the rest of Japan daily. From Sapporo’s Chitose Airport there are several options for travel to the city including:
- The JR New Chitose Airport Express, which takes around 40 minutes from the airport to Sapporo Station and costs 1040 yen. It departs at 15-minute intervals from the airport terminal - look for the JR signs just outside the baggage claim area. This express train will stop at major stations including Minami Chitose, Kitahiroshima and Shin Sapporo Station before arriving at Sapporo Station.
- Buses leave just outside the lobby of the airport terminal building for major hotels in Sapporo and other cities including Tomakomai, Iwamizawa, Noboribetsu and Urakawa. The fare to Sapporo is 820 yen and tickets are available from a booth in front of the arrivals hall. Under normal traffic conditions, it takes about 70 minutes to Sapporo.
- Taxi is not recommended as it can be a long and expensive trip (about A$300 and approximately 70 minutes depending on the traffic).
- In winter, JR trains and various buses are available for direct transfers to the major ski resorts including Niseko and Tomamu.
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