Customs duty and consumption tax: the order of calculation

Checked on October 11, 2026

Watercolor of a receipt, a small calculator and a pencil on a wooden desk

Parcels from overseas can be charged two taxes: customs duty and consumption tax (including local consumption tax). The order is: decide the taxable value, work out the duty, then work out the consumption tax. Even if the duty on an item is zero, consumption tax is charged separately.

First, decide the amount the tax is based on

The amount used to calculate the tax is called the “taxable value”. According to the Customs pamphlet (Japan Customs pamphlet, “Customs clearance for personal imports” (in Japanese, PDF)), it is set like this:

For items bought for your own use: the overseas retail price × 0.6
For items not for your own use, such as goods bought for resale: the price of the goods plus freight and insurance

What about shipping fees? The pamphlet only says “the overseas retail price multiplied by 0.6” and does not mention shipping. Practical guides generally say that for items for your own use, the calculation uses the item price only and shipping is not added. The calculations on this site follow that assumption. In actual clearance, the breakdown on the invoice can change the result.

Next, customs duty

If the taxable value is ¥10,000 or less, neither duty nor consumption tax is charged in principle (details here). Above ¥10,000, the duty is the taxable value multiplied by the rate for that type of item. For ordinary parcels with a total taxable value of ¥200,000 or less, you can use the “simplified tax rates”, which group items into a few broad categories. See the rate table.

Last, consumption tax

According to the National Tax Agency (National Tax Agency, Tax Answer No. 6563 (in Japanese)), consumption tax on imports is charged on the taxable value plus customs duty (and individual excise taxes such as liquor tax). In other words, the 10% (of which 2.2 points is local consumption tax) is applied to the amount after duty has been added.

Step	Calculation
Taxable value	Item price (overseas retail price) × 0.6
Customs duty	Taxable value × rate for the item
Consumption tax (incl. local)	(Taxable value + duty) × 10%
Total tax to pay	Duty + consumption tax

Costs other than tax

With international couriers, the carrier often handles customs clearance for you and may charge a separate handling fee. The Customs pamphlet gives no amount and only says to check in advance. We do not state an amount either.

Common misunderstandings

“If the duty is zero, I pay nothing.” Not so. Consumption tax is charged separately.
“Consumption tax is charged on the item price.” Slightly off. It is charged on 60% of the item price (the taxable value) plus the duty.

Sources

Japan Customs pamphlet, “Customs clearance for personal imports” (in Japanese, PDF) (checked October 11, 2026)
National Tax Agency, Tax Answer No. 6563 (in Japanese) (checked October 11, 2026)