How to Import Used Cars From Japan

Good Japanese road conditions, mandatory annual inspection laws, and the generally favorable auto maintenance habits of Japanese drivers all make import of used auto vehicles from Japan into the U.S. a worthwhile consideration even though Japan's distributions system is known to be costly. Japanese auto vehicle imports can include small autos, trucks, or large farming vehicles.

Instructions

Japan Auto Trade Market Research

1. Conduct product research. Start by contacting the Japan Export Trade Organization (JETRO) and the U.S. Department of Commerce's Japanese Export Information Center (JEIC). Here, the used-auto importer can search for information such as the existence of associated tariff and non-tariff barriers or reports on the Japanese used-vehicle market into the U.S., including mark-up percentages that U.S. sellers can expect after the used vehicle is imported.

2. Learn the terminology. There are trade terms used in the import/export market, including an alphabet soup of INCOTERMS (internationally recognized trade terms), such as FOB (free on board) and CIF (cost insurance and freight). To properly calculate costs for imports, it is essential to learn these terms or to consult a trade attorney before engaging in an international trade transaction.

3. Find auctions and auctioneers. There are Japanese-based online websites that specialize in Japanese used cars, but many require a deposit prior to bidding. Provide Cars is a Japan-based exporter that carries some Japanese used-car stock. It offers an online auction service that allows registered users to access auctions, auction history price searches, and stock tracking.

4. Make sure imported vehicles conform to the United States Department of Transportation's (DOT) safety and emission standards. Certification by a qualified Registered Importer (RI) is required before imported vehicles can be operated within the U.S. This can be a lengthy procedure, after which the compliant vehicle will receive DOT and EPA certification marks. While the usual method of used auto imports is to import the fully-assembled vehicle, according to Epoi.com, shipping dismantled parts from Japan in cube containers may be a less expensive transportation option.

5. Understand the Japanese negotiation style. According to the book "Exporting from Start to Finance," by L. Fargo Wells and Karin B. Dulat, the Japanese seek flexible relationships. "Don't expect snap decisions, they must retreat, confer, and reach a consensus," state Wells and Dulat. "Nods don't necessarily signal agreement."

Tips & Warnings

• Japan Export Information Center Office of Japan U.S. Department of Commerce Room 2318 Washington, D.C. 20230 Tel.[phone], Fax [phone].

• Consult an attorney regarding U.S. regulations and trade licenses that may be required based on the specific business import volumes of auto vehicles from Japan into the U.S.

References

• Japan External Trade Organization
• calculate costs for imports
• Provide Cars

Resources

• Registered Importer listing per 5/1/2008
• Incoterms
• "Exporting from Start to Finance," by L. Fargo Wells and Karin B. Dulat (Book)