Introduction
There are two major methods of exporting automobiles from Japan to overseas: ocean transport (by sea) and air transport.Each has different costs, time required, advantages and disadvantages, and there are also required documents and precautions for export procedures.This article compares the features of ocean and air transportation using container ships and RORO vessels, and provides easy-to-understand explanations for beginners, including cost estimates, procedures at the time of export and locally, as well as overseas demand for JDM vehicles (Japanese domestic only models) and key business points.
Characteristics and Notes on Ocean Transportation (Container Vessels and RORO Vessels)
Ocean transportation is common and cost-effective and uses either container ships or car carriers (RORO vessels).Each has its own characteristics, so choose the most appropriate method depending on the vehicle to be exported and the conditions in the destination country.
Characteristics of Container Transportation
This method uses container vessels, which can usually hold three to four passenger cars together in a 40-foot ocean container.The major advantage of this method is that the vehicle is secured in the container and no third party can touch the vehicle until the container door is sealed in Japan and opened in the importing country, thus protecting the vehicle from theft and damage.When sending expensive vehicles (e.g., limited edition model sports cars), the risk during transportation can be minimized by loading only one vehicle in a 20-foot container and securing and sealing it tightly.
On the other hand, costs tend to be more expensive: even if only one vehicle is sent, the cost of one container will be incurred, making it cost-prohibitive unless the company or case can transport multiple vehicles together.Also, the time and effort required for vanning and unloading is also involved.However, the advantage of shipping multiple units at once is that the cost per unit can be lowered.
As a precautionary measure, containerized transportation may require the draining of gasoline and the disconnection of battery terminals in advance to prevent hazards.The loading of containers should be entrusted to a professional company to ensure that they are secured safely.Also, consider purchasing marine insurance.It is a good idea to have insurance coverage in case of ship accidents or theft, especially for high-value vehicles.
Features of RORO vessel transportation
RORO vessels (roll-on/roll-off vessels) are car carriers in which vehicles drive themselves on board like a ferry.The vehicle is parked inside the vessel, which looks like a large parking lot, and secured with a belt for transportation.If there is a regular RORO vessel service to the export destination, this is usually the most common means of transporting used cars.
The greatest advantage of RORO vessels is that they can easily transport even a single vehicle.Unlike containers, RORO vessels can be shipped in units of one vehicle without the need to ship in bulk, making them an easy method to use for individuals who export only one vehicle, or for small businesses.In many cases, the cost is lower than that of containers, making this method suitable for those who want to reduce transportation costs.However, some shipping companies and routes require that the vehicle be drivable (self-propelled), so prior consultation is necessary if the vehicle is immobile.
One disadvantage is that there is a slightly higher risk of minor damage or theft during transportation because the vehicle is placed in the hold in a bare state.Since the space is not an enclosed space like a container, it is usually not touched by anyone other than the ship’s crew or dock workers, but the risk is relatively higher compared to containers, which are completely unattended during transportation.This makes it unsuitable for luxury or collector vehicles, which tend to be transported in containers, even if the cost is higher.Also, depending on the ship’s schedule, it may take longer to arrive at the destination, so be sure to allow plenty of time for arrival.
Other points to note: As with containers, it is recommended that RORO vessels be drained of gasoline and the battery terminals be disconnected prior to transport.Since you will be entrusted with the keys during transportation, be careful to keep them and your spare keys in a safe place.It is also recommended to take out marine insurance as necessary to cover any damage that may occur.
Features of air transportation (for emergency transportation and high-value vehicles)
The greatest feature of transportation by air is its overwhelming speed.While ocean freight takes several weeks to a month or more, air freight can be delivered to the destination country in a few days to a week.For example, air transportation of vehicles by international courier services or dedicated cargo planes can be used for urgent cases such as vehicles to be exhibited at exhibitions or vehicles to participate in races.It is also used as a service for wealthy individuals who want to deliver rare, classic, or luxury cars safely and quickly.
However, air transportation is very expensive.As a rule of thumb, ocean freight costs only a few hundred thousand yen per vehicle, whereas air freight costs well over one million yen in many cases, making the cost burden an order of magnitude higher.In fact, some data indicate that air transportation costs about $8,000 to $16,000, compared to about $900 to $2,000 for RORO vessels and $1,200 to $3,000 for containers for shipments bound for the U.S.Since the cost is not worth it for general used car exports, air transportation should be considered only for special circumstances.
Air transportation is also subject to size and weight restrictions.Large SUVs, trucks, etc. may not be loaded onto cargo planes, and even if they can be loaded, additional charges will be incurred for overweight.From the standpoint of handling dangerous goods, vehicles must be almost completely drained of gasoline before air transportation (due to regulations on dangerous goods).Therefore, the vehicle must be re-fueled after receipt.
In general, air transportation is a “time for money” option.Consider it when speed and added value of the vehicle are more important than cost.
Comparison chart between ocean and air transportation
The main differences between ocean freight (containerized and RORO shipping) and air freight are summarized below:
| Transportation Method | Estimated Time | Required Approximate Cost | Main Advantages | Main Disadvantages |
|---|---|---|---|---|
| Ocean transportation (RORO vessel) | Approx. 3-6 weeks | Inexpensive (about tens to hundreds of thousands of yen per unit) | Easy to send from one unit.Relatively inexpensive. | Risk of minor damage and theft since the vehicle is transported exposed. |
| Ocean transportation (container ship) | Approx. 3-6 weeks | Medium (several hundred thousand yen per unit) | Securely protected in containers.Efficient if multiple units are shipped together. | Cost of shipping only one unit is relatively high.Labor and costs for loading and unloading are incurred. |
| Air transportation (cargo plane) | Approx. 3-7 days | Expensive (over 1 million yen) | Fast by far.Ideal for emergencies and transportation of high-value vehicles. | Cost is very high.Limited in size and weight. |
Export Procedures and Required Documents
When sending a car overseas, it is essential to properly complete export procedures and prepare the necessary documents on the Japanese side.Below is an explanation of the main procedures, required documents, and points to note.
List of main required documents
The documents normally required for exporting a used vehicle from Japan are as follows
- Invoice – Commercial Invoice.This is a document that contains the details of the vehicle sales contract.It includes the vehicle model, VIN, year, displacement, engine type (gasoline/diesel), etc.
- Packing List – A packing list.It is a list of the vehicle’s quantity, dimensions, weight, and other information.
- Bill of Lading (B/L) – Bill of Lading is a receipt of cargo issued by the shipping company.It is an important document that proves that the exporter has entrusted the cargo to the shipping company and indicates the ownership of the cargo.
- Export Cancellation Registration Certificate – Temporary Cancellation Certificate for export issued by the Transport Branch Office in Japan.It is issued in both Japanese and English and is used as proof of vehicle registration in the importing country.
- Pre-shipment Inspection Certificate – Only when required.A certificate issued by a third-party organization to inspect the vehicle prior to export at the request of the importing country or buyer.Examples include a mileage certificate, radiation test, pest control certificate, etc. The requirements vary from country to country.
Flow of Export Procedures and Key Points
- Vehicle Preparation and Contract: Once the vehicle to be exported has been selected, we first conclude a sales contract with the overseas buyer (customer).After agreeing on payment terms for export (e.g., advance payment) and receiving payment as required, we will purchase the vehicle and pick it up in Japan.
If you are exporting for commercial purposes as a *vendor (used car dealer), you must obtain an antique dealer license in Japan (not required if you are exporting your own car as an individual). - Procedures for Export Cancellation: The vehicle to be exported must have its Japanese license plate number returned and be registered as temporarily cancelled.The vehicle must then be issued a “Temporary Registration Certificate of Export Deletion” at the local Transport Branch Office (or a “Notification Certificate of Intended Export” if the vehicle has already been temporarily de-registered).This certificate is valid for six months, during which time it must be submitted at the time of export declaration at customs.It is possible to obtain both Japanese and English versions of the export certificate. Since the importing country will often require the certificate in English, it is advisable to prepare a form with English text after confirming with the buyer.
- Arrangement of shipping or air freight: Select a reliable forwarder (freight agent/sea freight forwarder) and book a space for transportation.Arrange appropriate dates and ports according to the transportation method (container, RORO, or air), and prepare and submit a set of export documents such as invoices and packing lists as mentioned above.Arrange domestic transportation means for the scheduled loading date, and deliver the vehicle to the designated port yard or airport cargo area.
- Vehicle condition check and packing: Thoroughly wash and clean the vehicle prior to export.Mud on the vehicle body or tires, or seeds or plant debris inside the vehicle may cause quarantine problems in the importing country and may prevent the vehicle from clearing customs.For countries with strict quarantine requirements, such as Australia and New Zealand in particular, we recommend that you have your vehicle professionally cleaned before departure from Japan.In addition, please do not put any luggage other than spare tires and tools in the car or trunk.Undeclared personal belongings on board may be considered smuggling and may result in the denial of export permission for the vehicle itself.
- Export Declaration to Customs: Once all necessary documents are in order and the vehicle has been delivered, an export declaration must be made to Customs.Customs officials will inspect the cargo, checking the documents against the actual goods and confirming that there is nothing illegal in the cargo.If the customs officer finds no problem, an export permit will be issued.At the same time that the customs clearance is granted, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) is notified of this information, and the cargo is registered as exported to Japan.Please keep the Export Permit in a safe place, as it will be used for the recycling fee refund procedure described below.
- Loading by ship or air: After customs clearance, the vehicle will be loaded onto the reserved ship or air flight.For containers, the doors are sealed and loaded, and for RORO vessels, the vehicle is secured on board.After loading, a B/L (bill of lading) is issued by the shipping company.The forwarder (sea freight forwarder) will send the original B/L and a copy of the export license and other documents to the exporter.The exporter receives these documents and promptly mails them to the overseas buyer.The buyer will receive the vehicle at the port of arrival in exchange for the original B/L.
- Application for refund of recycling fee (optional): In Japan, a recycling fee is deposited in accordance with the Automobile Recycling Law, but if the vehicle is not disposed of in Japan due to export, the fee can be claimed back.After export, submit the prescribed documents (application form for refund of recycling deposit, etc., a copy of the export obliteration certificate, a copy of the export license, a copy of the B/L, etc.) to JARC (Japan Automobile Recycling Center) and complete the procedures for refund of the deposited recycling fee.Online application is also available.
Procedures and required documents in the importing country (differences by country)
Once shipping is complete, the next step is customs clearance and registration procedures on the importing country side.This is a necessary step for the overseas buyer receiving the car (or yourself locally), but it is important that the party exporting from Japan also understands the general flow of the process and shares information in advance.Each importing country has different regulations, documentation requirements, and costs, so let’s take a look at the main points to keep in mind.
Check import regulations: Each country has its own regulations regarding the importation of used vehicles.For example, in the U.S., the “25-year rule” allows the importation of only vehicles that are at least 25 years old.For this reason, Japanese 1990s sports cars and light trucks have become very popular in North America in recent years.Other restrictions include right-hand drive vehicles (in some countries, conversion to left-hand drive may be required), vehicle age restrictions (e.g., New Zealand has age and mileage restrictions when importing used vehicles, and Thailand, in principle, prohibits the import of used vehicles), and requirements for compliance with exhaust gas and crash safety standards.Please research the rules of the importing country in advance to confirm that the vehicle in question can be imported.
- Required Documents and Customs Clearance: Imports are basically declared at the local customs office using a set of documents sent from Japan (invoice, B/L, export cancellation certificate, inspection certificate, etc.).At customs, duties and consumption tax (value-added tax) are imposed.For example, in the U.S., the tariff rate is 2.5% for passenger cars and 25% for trucks, while in countries such as Thailand and Malaysia, very high tariffs and excise taxes may be imposed depending on engine displacement.In Europe, a tariff of about 10% plus VAT of around 20% is common.Don’t forget to be prepared to pay customs duties and taxes.In some cases, additional documents such as an import permit, proof of emissions and radiation inspection, notarization of proof of ownership, etc. may be required, so it is best to check with a local customs broker (custom broker) in advance.
- Local vehicle registration: After customs clearance is completed and the vehicle is picked up, registration procedures (license plate acquisition) are required before the vehicle can be driven on public roads in the country of destination.The vehicle will undergo safety inspections and emission tests equivalent to vehicle inspections at the transportation authorities in each country, and if necessary, changes will be made to light specifications (e.g., adjusting the optical axis of headlights or changing side mirror markings in right-of-way areas) and speedometer display units (e.g., changing to a mileage display).Please be careful not to lose the original Japanese export cancellation certificate, as it is often used as a title (proof of ownership) for local registration.Non-English speaking countries may require a translation of this certificate.
- Cost and Time: Keep in mind that in addition to transportation costs, there are local costs (duties and taxes, customs fees, port charges, inspection fees, etc.) to complete registration in the importing country.In some countries, these fees can total several tens of percent of the vehicle price.It may also take several weeks or more to obtain a license plate number.It is a good idea to inform the buyer of these local costs and time requirements in advance.
Local pickup method (port/airport pickup vs. door-to-door)
The transported vehicle is basically handed over at the bonded area of the port of arrival (or airport).After the local customs formalities are completed, the importer (buyer) will receive the vehicle at that location.There are two common ways to receive the vehicle
- Direct pickup at port/airport: This is the most common method.The importer himself or a local customs broker will complete customs formalities and pick up the vehicle from the bonded yard.At the time of pickup, the importer must present a bill of lading (B/L), identification, and a set of customs clearance documents to receive the vehicle.Once the vehicle arrives at the port, free time (free storage period) will be set, after which storage fees will be charged on a daily basis.After receiving notification, you should clear customs and pick up the vehicle as soon as possible.If you wish to drive yourself home from the port, you may need to arrange for a temporary license plate number and a trailer.
- Door-to-door delivery service: Some carriers offer a door-to-door service, in which the vehicle is delivered from the port of import to a designated address.This is a method whereby a local overland truck is arranged to deliver the vehicle to your home or store after pickup at the port.In terms of trade terms, this is similar to “DAP/DAT/DDP (bring to destination)” rather than “CIF (delivery at port).Door-to-door is convenient, but it is more expensive due to additional domestic transportation costs.Also, since it is necessary to coordinate with the local customs agent or shipping company, it is simpler for beginners to receive cargo at the port of destination.Please consider this option if you are unable to pick up the cargo on your own.
With either method, it is important to check the vehicle for damage before receiving it.If the vehicle is damaged in transit, take photos or otherwise record the damage on the spot upon receipt so that it can be covered by insurance.
Overseas demand and business prospects for JDM vehicles
Lastly, we would like to mention the popularity of Japanese Domestic Market (JDM) cars overseas, which are models originally manufactured and sold for the Japanese domestic market.In recent years, JDM cars have been sold in the United States and Europe, including the movie “Wild Speed.In recent years, Japanese 90’s sports cars have enjoyed a boom among young people, partly due to the influence of the “Wild Speed” movie series.As mentioned above, cars that have passed the 25-year rule (in this year, Japanese cars until 1999) can now be legally imported into the U.S. one after another, and masterpieces such as the Skyline GT-R, Supra, Silvia, and RX-7 are fetching high prices.On the other hand, even cars whose value tends to decrease with age in Japan may be highly valued overseas due to the rarity of right-hand drive, reliability of Japanese manufacture, and admiration for the tuning culture.
Against this background, the business of exporting used Japanese cars overseas has great potential.If vehicles purchased at relatively low prices in Japan are sold overseas, they can generate large profits, depending on the exchange rate and demand.Especially in some emerging countries and regions, Japanese mass-market and commercial vehicles are valued as “used cars that are inexpensive and not easily broken down,” and are exported in large numbers (e.g., Toyota cars are highly valued in Africa and the Middle East).Also, in developed countries such as North America, Europe, and Oceania, demand for “young timers” (neo-classics) for vehicles covered by the 25-year rule and limited edition models is strong, giving new opportunities to vehicles that have been sleeping in Japan.This can be a good opportunity for Japanese owners to sell their cars at a higher price.
However, there are some precautions that must be taken when developing this as a business.First of all, compliance with the laws and regulations of each country is an absolute requirement, so do not forcibly export illegally modified vehicles or vehicles that do not meet security standards.In recent years, illegal export of stolen vehicles has also become a problem, and customs is conducting strict checks.Before exporting, check the VIN number and ownership to ensure that there is no disguise of a stolen or accidental vehicle.In addition, marketing to determine local demand is also important.Since prices for some types of vehicles can fluctuate wildly due to temporary booms and busts, it is necessary to know the market price and manage risk.
In addition, building trust is key in the export business.More care is required than simply sending a car, including credit transactions with overseas buyers, secure management of payments (e.g., use of escrow, although prepayment is the basic principle), and collaboration with local partners.If these steps are steadily taken, it will be possible to provide excellent Japanese used cars in a way that will be appreciated overseas, and the business will be mutually beneficial for both parties.
Conclusion
Exporting automobiles from Japan to overseas involves a wide range of processes, from selecting a transportation method to preparing documents and clearing local customs.As described in this article, ocean and air transportation each have their own advantages and disadvantages, and the necessary procedures differ.However, they are not difficult if preparations are made one by one.Even beginners can send their beloved cars abroad for a second life or seize new business opportunities if they plan according to the key points.The quality and attractiveness of Japanese cars are appreciated all over the world.We encourage you to take on the challenge of exporting your car safely and smoothly in an appropriate manner.We hope that you will follow the various procedures carefully and that your precious car will be put to good use in foreign lands.
Reference: JETRO’s explanation of import/export procedures jetro.go.jp, the site provides information on ocean freight forwarding planetcars.jp, example of transportation cost to the U.S. wcshipping.com, JDM Popularity News every-trade.com, etc.
For those who are considering exporting Japanese cars
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