CHAMBER NEWS
Chamber joins forces with partners to explore trade opportunities with Japan
Spatial Global’s Export Champion Rachel Morley (pictured) spoke at an event recently, hosted by the Chamber in conjunction with the Department for International Trade and Derbyshire Economic Partnership, promoting exports to Japan. Below are some of her key takeaways from the day.
LOOKING TO DO BUSINESS IN JAPAN? This event was focused on raising awareness of the opportunity to increase export sales in Japan. The Chamber and Department for International Trade (DIT) are equipped with the contacts and networks to connect businesses with potential Japanese partners. Rachel’s talk explained the practical aspects of trading with Japan to the 80 businesses represented at the event. Japan is regarded as a great
target market for UK businesses as there are many Japanese companies which speak English and lots are already used to doing business with non-Japanese companies.
WHY JAPAN? With £6.2bn British goods purchased in 2018 - a ten per cent growth on 2017 - there is an appetite for UK products and brands. The attraction of ‘Made in Britain’ holds strong and the recent Rugby World Cup and the 2020 Olympics are providing increased opportunities.
TERMS OF THE SALE Rachel helped businesses present understand the responsibilities and options when it comes to exporting products to Japan, the payment methods and related risks.
THE CONTRACT CONSIDERATIONS AND TERMS OF SHIPMENT Ensuring the correct Incoterms® are used and that there is clarity on which terms are used in light of the 2020 Incoterms® is vital, which is why it is essential to state the version of Incoterms used, otherwise a dispute could arise as to the correct version and lead to a different outcome to that intended.
TARIFFS Goods that are imported into Japan are subject to both customs duty and consumption tax, which is currently ten per cent. Depending on the nature of the contract signed between UK companies and their Japanese counterparts, customs duties may be paid on the UK side or the Japan side.
• General rate • Temporary rate • WTO rate • Preferential rate (GSP) • EPA rate (Economic Partnership Agreement)
• Consumption tax
ISPM15 Japan is a signatory country to the ISPM15 standards. International Standards for
Phytosanitary Measures No. 15 (ISPM 15) is an International Phytosanitary Measure that directly addresses the need to treat wood materials of a thickness greater than six mm. Its main purpose is to prevent the international transport and spread of disease and insects.
ROUTINGS: OCEAN FREIGHT The main Japanese sea ports are: Osaka; Nagoya; Yokohama; Kobe and Tokyo. The transit times are between 29 – 35 days, with direct sailings from Southampton and London Gateway. In relation to other Far East main ports, rates are generally 25% higher.
ROUTINGS: AIR FREIGHT The main airport is Narita, Tokyo, which caters for various wide body passenger aircrafts. The national airline is JAL, with direct daily 12- hour flights, and other airlines - via EU and ME transhipment hubs.
BENEFITS IN EXPORTING TO
JAPAN The Japanese market is very desirable for businesses seeking export opportunities, because it’s a stable place to do business. As the world’s third largest economy in the world, Japan is bigger than the UK and Germany combined. In 2014 Japan made up six per
cent of world Gross Domestic Product (GDP). Japan remains the high-tech powerhouse economy of Asia and is a strategic stepping stone for other Asian markets. It has highly educated consumers who are early adopters of new products and services, plus a large and rich consumer market based in urban areas. There are strong political, trade and social ties between the UK and Japan, making it a great export market for British businesses.
THINKING OF EXPORTING TO JAPAN? Organisations such as Spatial Global and the Chamber can help with your export documentation to ensure you comply with the relevant tariffs, duties and laws; helping you find the most effective shipping routes for your products and provide you with a complete end-to-end solution for your UK exports to Japan.
To find out how the Chamber can help your business thrive in overseas markets, visit
www.emc-dnl.co.uk/enabling-international-trade
58 business network March 2020
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