Why This Question Matters
The situation: You need to import goods into Japan. You have no Japan entity. You have heard of "IOR" and "ACP" - perhaps from a customs broker, a partner, or a search result. They sound similar. They are not. Using the wrong structure means either paying tax you should not pay, or creating liability exposure your business cannot sustain.
The stakes: A wrong import structure choice does not affect just one shipment. It affects your Japan Customs registration, your JCT (consumption tax) deductibility, and whether Japan Customs will accept your future declarations.
The 2023 Reform That Changed Everything
Japan Customs clarified the definition of "importer" in October 2023. The operative concept: disposition rights (処分権限) - the legal authority to decide what happens to goods after customs clearance. The entity that holds this authority is the importer of record (IOR).
This reform had one major consequence: nominee IOR arrangements (名義貸し) - where a Japan-resident third party acts as the formal importer while actual economic ownership stays with a foreign entity - were prohibited in most cases.
The only compliant mechanisms for a non-resident to import into Japan are now:
- IOR by a Japan-resident entity that genuinely takes title and bears economic risk (the Aplash IOR service model)
- The non-resident as IOR, represented by an ACP (Attorney for Customs Procedures, 税関事務管理人 under 関税法第95条)
These are not interchangeable. They are structurally different legal arrangements.
IOR (Importer of Record): Aplash as the Importer
What It Is
Under the IOR service, Aplash is the importer. Aplash buys the goods from the overseas seller at an agreed commercial price, takes legal title, clears customs in Aplash's name as the Japan-resident importer, and re-sells the goods to the Japan buyer.
┌─────────────────┐ sells goods to ┌──────────────────┐ re-sells to ┌──────────────────┐
│ Overseas Seller │ ─────────────────→ │ Aplash (IOR) │ ──────────────→ │ Japan Buyer │
│ (Your Company) │ │ Japan-resident │ │ │
└─────────────────┘ └──────────────────┘ └──────────────────┘
│
Named on 輸入申告
Pays customs duty
Issues qualified invoice (QIS)
What Aplash Takes On
| Responsibility | Aplash |
|---|---|
| Named as importer on 輸入申告 | Yes |
| Pays customs duty at clearance | Yes |
| Issues Japan-qualified invoice (QIS) to buyer | Yes |
| Bears import tax liability | Yes |
| Legal title to goods during clearance | Yes |
Who This Is For
IOR (Aplash as importer) is appropriate when:
- You are an overseas manufacturer or seller supplying a Japan buyer without any Japan presence
- You do not intend to claim Japan JCT (consumption tax) input tax credits on the import
- You want a fully managed Japan import solution with no customs registration or filing on your part
- Your goods are commercial goods where you, as overseas seller, do not need to retain IOR status
JCT Under the IOR Structure
Aplash, as the Japan-resident importer, pays import JCT (10%) at clearance and claims it as an input tax credit in Aplash's own JCT filing. Aplash charges domestic consumption tax to the Japan buyer on re-sale. The overseas seller (your company) receives the agreed purchase price with no Japan tax obligations.
ACP (Attorney for Customs Procedures): You as the Importer, Aplash as Agent
What It Is
Under the ACP structure, your company is the importer. Your entity is named as the IOR on the import declaration (輸入申告) filed with Japan Customs. Because you are a non-resident - no Japan address, residence, or office - you cannot directly interact with Japan Customs.
Japan Customs Act Article 95 provides the mechanism: a Japan-resident entity acts as your Attorney for Customs Procedures (税関事務管理人), liaising with Customs on your behalf. Aplash fills this role.
┌────────────────────┐ appoints as ACP ┌────────────────────┐ files with ┌────────────────────┐
│ Non-Resident │ ─────────────────→ │ Aplash (ACP) │ ────────────→ │ Japan Customs │
│ Entity (IOR) │ │ 税関事務管理人 │ │ (税関) │
│ Named on 輸入申告 │ │ Japan-resident │ │ Processes │
│ Pays import tax │ │ procedural agent │ │ declaration │
└────────────────────┘ └────────────────────┘ └────────────────────┘
The non-resident prerequisite is strict: the client must have no address, residence, or office in Japan (関税法第95条). If your company has any Japan presence - even a registered branch - the ACP route is not available. You would file directly as a Japan-resident entity.
What Aplash Does Under ACP
| Role | Aplash |
|---|---|
| Named on 輸入申告 as importer | No: client is named |
| Acts as Japan-resident agent (税関事務管理人) | Yes |
| Liaises with Japan Customs on behalf of client | Yes |
| Files customs declarations through NACCS | Yes |
| Pays import duty | No: client pays via Aplash as agent |
JCT Under the ACP Structure: The Core Tax Advantage
When your entity is named as IOR, your entity paid import JCT (10%) at clearance. This creates the ability to recover that JCT - but doing so requires two additional registrations:
| Registration | Purpose | Timing |
|---|---|---|
| 納税管理人 (Tax Agent) | Japan-resident agent to receive NTA correspondence | Before first import |
| Qualified Invoice System (QIS / インボイス制度) | Enroll as consumption taxpayer to issue and claim JCT | Before first import |
Once both registrations are in place, your entity files a Japan JCT return, recovers the import JCT paid at clearance, and charges domestic JCT on Japan sales.
| Scenario | Import JCT (10%) | Japan Sales JCT | Net JCT Liability |
|---|---|---|---|
| ACP: Non-resident as IOR + QIS | Pay ¥10M | Collect ¥12M | Pay ¥2M only |
| Third-party IOR (prohibited model) | Third party pays ¥10M | You collect ¥12M | Lose ¥10M - no deduction |
⚠️ Only the entity named on the 輸入申告 as IOR can claim import JCT as an input tax credit. If a third-party holds the IOR status, that deduction is permanently lost to you.
Who This Is For
ACP is appropriate when:
- Your company is the manufacturer or seller and you want to retain IOR status in Japan
- You will have ongoing recurring imports and want to recover import JCT via a Japan filing
- JCT recovery economics are material to your Japan business model
- Your company has no Japan address, residence, or office (hard prerequisite under 関税法第95条)
- You want direct control over customs declarations rather than delegating commercial title to an intermediary
Side-by-Side Comparison
| Dimension | IOR (Aplash as Importer) | ACP (Client as Importer, Aplash as Agent) |
|---|---|---|
| Who is named on 輸入申告 | Aplash | Client (non-resident) |
| Who pays customs duty | Aplash | Client (via Aplash as agent) |
| Client Japan presence required | No | No - and no Japan presence must exist |
| JCT deductibility for client | Not available: Aplash deducts | Available after QIS + 納税管理人 setup |
| Additional registrations needed | None (Aplash already registered) | 納税管理人 + QIS registration |
| Legal title to goods | Aplash takes title | Client retains title throughout |
| Setup lead time | Short: faster for one-time imports | Medium: 4–6 weeks for registrations |
| Best fit | One-time or low-volume shipments | Recurring importers with JCT sensitivity |
Decision Tree
Pricing Overview
IOR Service (Aplash as Importer)
| Shipment CIF Value | Base Fee | Variable Component |
|---|---|---|
| Standard (Case A) | $2,000 | + 0.8% CIF above $50K |
| Complex (Case D) | $2,800 | + 1.0% CIF above $50K |
| Controlled goods | $9,000 | + 1.2% CIF above $100K |
Ad valorem scaling applies above the stated CIF thresholds. Flat fees alone do not scale for high-value cargo.
ACP Service
ACP is structured as an annual retainer plus per-declaration fee. Contact Aplash for current rates based on your shipment volume and product category.
Common Misconceptions
"IOR and ACP are just two names for the same service." They are structurally different legal arrangements. IOR means Aplash is the importer. ACP means your company is the importer. Who is named as importer determines who pays duty, who holds title, and who can deduct JCT.
"I can use ACP even though my company has a Japan branch." No. 関税法第95条 requires the client to have no address, residence, or office in Japan. A branch office disqualifies you. You would file directly as your Japan branch.
"The third-party nominee IOR model still works." The October 2023 Japan Customs reform eliminated compliant use of nominee IOR structures in most cases. Arrangements where a Japan entity acts as formal importer without genuine disposition rights over the goods are no longer acceptable under the reformed definition.
"ACP is cheaper because Aplash is just filing paperwork." ACP setup requires two additional registrations (納税管理人 + QIS), each with lead time and ongoing compliance obligations. The ongoing benefit - JCT recovery - is substantial for recurring importers. For one-time or low-volume shipments, IOR may be simpler overall.
Regulatory References
| Law / Rule | Relevance |
|---|---|
| Customs Act Art. 95 (関税法第95条) | ACP legal basis: 税関事務管理人 appointment |
| Customs Act Art. 67 (関税法第67条) | Import declaration (輸入申告) requirements |
| Consumption Tax Act (消費税法) | JCT deductibility: IOR as named entity |
| インボイス制度 / QIS | Qualified Invoice System: prerequisite for JCT recovery under ACP |
| October 2023 Japan Customs Circular | Disposition rights (処分権限) clarification: reformed IOR definition |
Official Sources
| Source | Link |
|---|---|
| Japan Customs - ACP Leaflet (EN) | customs.go.jp |
| Customs Act (Article 95, EN) | japaneselawtranslation.go.jp |
| NTA - Qualified Invoice System | nta.go.jp |
| Japan Customs - Import Procedures | customs.go.jp/english |
This article is for informational purposes only and does not constitute legal or customs advice. Consult a certified customs specialist (通関士) or licensed attorney (弁護士) for your specific structuring needs.