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A guide to starting an online store in Japan
Like any other countries, there are several rules for online shopping service as business in Japan. You need a permission to sell some items and must write required product information on the online shopping website.
After you read this article, you will get knowledge about applications, infomration about laws and more tips around online shopping business in Japan.
You cannot say that you didn’t know the law, it is necessary to know those rules about your products to minimize the risk of violating laws in Japan.
Table of Contents
Required reports to bureaus for online shopping business in Japan
Just like selling products, there are required reports to bureaus depending on what you are going to sell online. Here is a list of product categories that you need to be mindful.
| Business | Law | Reports & permissions | Bureaus |
|---|---|---|---|
| Buying secondhand items and sell | Secondhand Articles Dealer Act (古物営業法) |
Secondhand dealer license (古物商許可) |
Police in
Jurisdiction Community Safety Bureau |
| Selling Foods | Food Sanitation Act (食品衛生法) |
Approval on Food Sanitation Act (食品衛生法に基づく営業許可) |
Health Center in Jurisdiction |
| Selling Health food products | Food Sanitation Act(食品衛生法) Pharmaceutical and Medical Device Act （医薬品医療機器等法/薬機法) | Approval on Pharmaceuticaland Medical Device (医薬品医療機器等法に基づく許可) Health Center in Jurisdiction |
Pharmaceutical Affairs Division |
| Selling Alcohol | Liquor Tax Law （酒税法) |
Mail-order liquor retail license (通信販売酒類小売業免許) | Tax office in Jurisdiction |
| Selling Medical supplies | Pharmaceutical and Medical Device Act （医薬品医療機器等法/薬機法) | A license for establishing a pharmacy (薬局開設許可） Approval for marketing drugs (医療品販売許可) Approval for Mail Order (特定販売届出) |
Health Center in Jurisdiction Pharmaceutical Affairs Division |
| Manufacturing and selling cosmetics | Pharmaceutical and Medical Device Act （医薬品医療機器等法/薬機法) | Marketing and Manufacturing of Pharmaceuticals, Quasi-Pharmaceutical Products and Cosmetics（医薬品、医薬部外品及び化粧品の製造販売業及び製造業） |
alth Center in Jurisdiction Pharmaceutical Affairs Division |
Product categories that requires permission
There are product categories that you need to obtain permission for selling in Japan. Let’s take a closer look at each category.
Secondhand goods
There are 13 categories for secondhand goods. Application for permission needs to be done in the jurisdiction where the actual shop is located and you will need to register the online shopping store there. If you purchase secondhand goods, you will be able to handle goods including brandnew items that has not been used before. You can apply for multiple categories but you might lose the license if you don’t operate the secondhand goods business for 6 months after your application for the category.
Foods
Except special cases such as direct shipping from farmers and packaged process foods sourced domestically in Japan, you will need permission from Health Center. If you sourse bulk products and re-package those products to sell online, you will still need the permission. Permission and condition change depending on whether or not food is wrapped, what kind of business style you have and what your business size is. Foods that requires persimission are: processed food(dishes and desserts), fish, meat, diary and so on.
Alcohols
Alcohols that can be sold online with mail order liquar retail licence are limited to small up to 3,000 litters per item and imported alcohols. Permission is required for alcohols with more than 1% of alcohol, that is taxable liquors. You also need permision to sell seasonings that have more than 1% of alcohol such as sweet sake (Mirin).
Cautionery points on advertisement
Ambuguity and misleading communication of products on advertisement can be a cause of troubles. Permisions and official report to bureaus are all based on laws so product descriptions on ads also need to follow laws. For example, you cannot exaggerate effects of eating your food products or supplements by using words such as “最高(“The best” in Japanese)” or “驚異的(“Astonishing” in Japanese).
Other prohibitted example on advertisement is describing the product as if it is made in Japan and not specifying there are some ingredients from other country. Misleading description and false information are prohibitted. Expressing the product better than the actual product, or addressing exclusivity and benefit such as “Limited to 30 people” when it is not limited is also false and misleading advertisement.
“Notation based on the Specified Commercial Transaction Act”
Since customers cannot take a look at your actual products on online stores, you need to write basic necessary information about products by “Notation based on the Specified Commercial Transaction Act”. Here are the necessary information on your online stores:
-
Price
-
Shipment fee
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Other fees (for example fees to transfer payment.)
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Payment terms
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Shipment terms
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Payment options (Creditcard, cash-on-delivery, payment via bank transfer etc)
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Return policy
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Company name or peronal name if self-employed
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Address
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Phone number
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Name of Representative or person in charge of the online shopping business
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Defect liability policy (If there is a return policy for defects)
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Special conditions (Limited stock and other special conditions)
Searching for such information on similar sellers can be helpful.
Regulations applied when selling products
There are regulations when selling products regardless online or offline. For example, when you sell food products, sticker needs to be attached on each product by Food Labeling Act as following.
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Name of product
-
Ingredients
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Net volume
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Company name
-
Allergen (if there is an ingredient that contains allergen.)
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Additives (if there is an ingredient that is additive.)
If you sell clothes, you need to attach tag to each clothes by Household Goods Quality Labeling Act. Mixture ratio of each fiber materials of clothes needs to be written on the tag.
If you sell electric codes, you need to attach notes with notion based on Electrical Appliances and Materials Safety Act. For other various products, you may still need to follow Consumer Product Safety Act.
Report and Permission for imported products in Japan
To export your food products to Japan and sell them, you will need to submit Food Import Notification Certificate Food Sanitation Act.
When your food product is actually being imported, quarantine station will check your food products at port or airport. If your products do not pass this inspection, they will be disposed or returned to the country of origin.
Fashion products and stuffed animals with furs from special pieces are banned or regulated by Convention on International Trade in Endangered Species of Wild Fauna and Flora.
If you export plants, animals, insects, dried flowers and seeds to Japan, there will be quarantine to check if they have virus or hazardous substance.
Importing Tax
There are importing tax imposed for some items such as clothes, accessaries, snacks and meat. Some items require importing tax and comsumption tax. Not only important tax depends on the category of the item but also on its material. There are some items that do not require importing tax such as perfume and watches.
Research. Check. Consult.
Going for business without knowing local laws and regulations can be very risky for your business. In a worse case, even to lawsuits.
Preparing for your business in Japan by researching, checking regulations and consulting with expertise can avoid possible failure and minimize risk. Only by doing so, you will be able to operate your online stores in Japan stably and successfully.
