Japan experienced a sharp increase in duty-free, low-value imports in 2025, with the number of such shipments exceeding 200 million, representing a roughly 20% rise compared to the previous year [1]. This surge has been attributed to overseas e-commerce retailers, who have increasingly taken advantage of the tax exemption originally designed to simplify customs procedures for small personal imports [1]. Major platforms such as Temu and Shein have been identified as key channels for these shipments [1].
The influx of untaxed goods has raised concerns among Japanese authorities and domestic retailers about market distortions and the erosion of tax revenues [1]. Domestic retailers have complained about the unfair advantage enjoyed by foreign sellers, prompting the government to take action [1]. In response, the Japanese government plans to abolish the duty-free exemption for small personal imports in 2028 and is considering measures to tax low-value imports arriving through major e-commerce platforms [1].
Industry experts suggest that this policy change could significantly impact cross-border e-commerce and the strategies of major online retailers targeting Japanese consumers [1]. The move is also expected to provide relief to domestic retailers who have struggled to compete with the flood of untaxed goods entering the country [1].
CONCLUSION
Japan's decision to abolish the duty-free exemption for low-value imports by 2028 marks a significant shift in trade policy, aiming to address market distortions and protect domestic retailers. The move is expected to have a major impact on cross-border e-commerce platforms and could reshape the competitive landscape for both foreign and local sellers.