Exporting to Japan

Japan Export Guide | Trade Finance Global

Exporting to Japan

Recognised as the fourth most affluent country in the world Japan imported more than $640 billion worth of products last year. This number reflected a significant downward trajectory however with importing falling by 15% in recent years. A significant factor in this drop is the decrease in value of mineral fuels, with imports from Saudi Arabia and the United Arab Emirates reducing by 40% during that period.

Annual imports in Japan averaged 2750 JPY billion between 1960 and 2015 (1 USD = appx 110 JPY) with figures as high as 8000JPY billion in recent years. Major imports include mineral fuels (30%), machinery (over 20%) and petroleum (15%) while major import partners include China ($160 billion US), the United States ($65 billion) and Australia ($45 billion).

Japan Country Profile

Official Name (Local Language)Nihon-koku; Nippon-koku
CapitalTokyo
Population126,702,133
CurrencyJapanese Yen
GDP$4,730 billion
LanguagesJapanese
Telephone Dial In81

Japan Imports Profile

Imports ($m USD)

671,474

Number of Import Products

4,426

Number of Import Partners

213

Top 5 import partners

Country

Trade

% Partner Share

United States

135,06

19.35

China

132,786

19.02

Korea, Rep.

53,308

7.64

Other Asia, nes

40,644

5.82

Hong Kong, China

35,437

05.08

Top 5 Import Products at HS 6 digit level

Export Product

Number

Petroleum oils and oils obtained from bituminou

9.5%

Natural gas, liquefied

6.0%

Transmission apparatus, for radioteleph incorpo

3.7%

Bituminous coal, not agglomerated

3.4%

Monolithic integrated circuits, digital

2.9%

Chart Showing GDP Growth Compared to rest of world

GDP Composition for Japan

Agriculture

%

Products List

1.2%

Vegetables, rice, fish, poultry, fruit, dairy products, pork, beef, flowers, potatoes/taros/yams, sugar cane, tea, legumes, wheat and barley

Industry

%

Products List

27.7%

Motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods

Services

%

Services

71.1%

Exporting to Japan: What is trade finance?

Trade finance is a revolving facility which alternative financiers offer – it enables SMEs to buy stock and can help ease the pressure from cash flow issues.

Typically, an alternative financier will fund most of the cost of the product, including charges (e.g. VAT charges).

Trade finance offers upsides over more traditional bank finance such as bridging mortgages or loans. Trade finance provides quick funding without affecting existing relationships with banks.

How Trade finance is a revolving facility which alternative financiers offer – it enables SMEs to buy stock and can help ease the pressure from cash flow issues.

Typically, an alternative financier will fund most of the cost of the product, including charges (e.g. VAT charges).

Trade finance offers upsides over more traditional bank finance such as bridging mortgages or loans. Trade finance provides quick funding without affecting existing relationships with banks.

How does it work?
If you’re a firm importing or exporting inventory internationally, then a trade finance facility would allow you to fund this through offering a LC (letter of credit) or some form of cash advance.

I’m looking to export to Japan, how can Trade Finance Global help, and how does it work?
If you’re looking to export stock supplies to other markets, you may need export finance, which is an agreement between you (the exporter), and the importer from overseas. A non-bank lender will advance you the cost of producing the products that you’re exporting (as a debt instrument), either once you have shipped the goods, or before you have produced them. Once your foreign importer has received the inventory and pays you for the import, you will repay the advance loan from the lender over an agreed period of time.does it work?
If you’re a firm importing or exporting inventory internationally, then a trade finance facility would allow you to fund this through offering a LC (letter of credit) or some form of cash advance.

I’m looking to export to Japan, how can Trade Finance Global help, and how does it work?
If you’re looking to export stock supplies to other markets, you may need export finance, which is an agreement between you (the exporter), and the importer from overseas. A non-bank lender will advance you the cost of producing the products that you’re exporting (as a debt instrument), either once you have shipped the goods, or before you have produced them. Once your foreign importer has received the inventory and pays you for the import, you will repay the advance loan from the lender over an agreed period of time.

Information

Exporting to Japan? Contact our local experts

First Name*

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Your Organisation*

How much trade finance are you seeking?*

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Briefly, what type of stock or trade are you looking to finance?

(Marketing Terms can be found here)

Japan Economic Statistics

Government Website

https://www.japan.go.jp/

Sovereign Ratings

https://countryeconomy. com/ratings/japan

Central Bank

Bank of Japan

Currency USD Exchange Rate

107.1

Unemployment Rate

3.2%

Population below poverty line

16.1%

Inflation Rate

-0.1%

Prime Lending Rate

0.3%

GDP

$4,730 billion

GDP Pro Capita (PPP)

$38,900

Currency Name

Japanese Yen

Currency Code

JPY

World Bank Classification

High Income

Competitive Industrial Performance

8/138

Corruption Perceptions Index

20/180

Ease of Doing Business

39/190

Enabling Trade Index

16/136

Currency In Japan

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