Japanese business and big manufacturers’ sentiment rebounded to pre-pandemic levels in the first quarter of 2021 despite a renewed Covid-19 state of emergency, companies stepped up capital spending plans, suggesting Asia’s largest advanced economy will stage a quick recovery from the pandemic.

The bank of Japan’s Tankan Index for large manufacturers rose 15 points to a reading of plus 5, well ahead of analyst expectations that it would remain in negative territory at minus 2.

“The results underline the Bank of Japan’s view the economy continues to recover moderately,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.

The data offers some relief for policymakers striving to revitalize the pandemic-hit economy as the fourth wave of infections raises uncertainty about the outlook.

However, the optimistic sentiment at Japan’s industrial companies suggested that the global vaccine rollout, robust growth in China, and the prospect of a large US stimulus were improving the business environment for exporters.

“It turns out that renewed state of emergency curbs have had limited impact on business sentiment thanks to solid exports and goods demand,” said Yoshiki Shinke.

Backed by prospects of recovery, big firms expect to boost capital expenditure by 3.0% in the year that began in April, more than market forecasts for a 1.4% gain. That would follow a 3.8% cut in spending plans for the year that ended in March.

Today is the best time to expand in Japan!

Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best.

At COVUE IOR, we seek to make the import process simple, compliant, and accessible to all sellers of all sizes. COVUE is not an ACP. COVUE is the direct IOR: we own our license, and our compliance support is in-house. We trusted by 000’s of Sellers and Shipping providers.



By the business book, it states that a successful business, regardless of size or specialty, must remain proactive and growth orientated. If there is too much time spent on a stagnant plateau could cause a result failure to grasp the reigns on a healthy business path of improvements and increased profits.

So, the question everyone asks; “How can you jumpstart sales and revolutionize the way you do business?” The simplest answer would be exporting to foreign markets globally. Regardless of the size or what industry the business is set.

There is so much potential to find in foreign markets. If the business’s goal of risk management, generating new revenue streams, efficient production, competition elimination, or increase stability of your business. Exporting is a logical step to take towards meeting those goals.

Market Diversification.
If the business isn’t exporting that could be a disadvantage meaning, the business is putting all of its eggs in one basket. Many companies make the mistake of realizing how dependent they are on the health of a single market until it’s too late. To damper the effects of a localized economic downturn, diversify businesses’ client base, and finding new foreign markets you can export to can help you reduce those chances. Being proactive about diversification insures the company against poor economic conditions in one part of the globe. This is a great way to manage risk and become more profitable in the process.

Jumpstart growth.
With the products that the business already produces, why limit itself to working within the domestic markets? Through exportation, it can deliver results to your company through the chance of fast revenue that can then be reinvested into the business. Instead of waiting for the local market to exhaust stock, export to expand the range of your business and generate capital faster. This proactive strategy allows your company to be more competitive in its industry as you eclipse competitors at speedier rates.

New sources of revenue.
Through exportation of goods gives the company an advantage to create new streams of revenue. There are many untapped markets worldwide that are waiting to be found. There is only the small matter of locating them and creating business relationships. Once you’ve established reliable distributor contacts, your exports can lead to a tremendous increase in annual revenue without much additional work on your part.

Increased stability.
Seasons impact every company. If the company suffers a significant impact from the natural rhythms of the domestic market, exporting to countries with opposite trends can give the company much-needed stability. For example: If the business sells winter apparel, don’t accept dwindling sales during the spring and summer months at home. Instead, counteract these predictable downturns by finding cold-weather markets with a high demand for your products. This strategy is an easy way to maintain consistent production and profitability, year-round.

Take advantage of full production capacity.
As an industrial manufacturer looking to get the most out of existing resources, it’s important to take advantage of the full production capacity. If the business is recalling back production because they are tied to the demands of a local market, exporting can solve this problem and make more money. Find foreign markets that give the business a chance to increase production while reducing fixed costs. Higher production levels also mean more influence during price negotiations for raw materials.

Extend product lifespan.
After selling the business products to a domestic market for a long time period, sales can show a decline as demand swindles off. As soon as the business notices this trend, consider new markets before considering new products. Products that are considered “mature,” in one market have the chance of becoming a desirable new product when exported to a foreign market. Make sure the business has gotten the most out of its existing ideas before investing in new product development. Exporting is an effective way to achieve this.

Better feedback.
Businesses that cater to diverse markets find it easier to collect accurate feedback and product improvement suggestions. When working with a sole domestic market, customer response is not as well-rounded. This advantage makes it easier to be competitive in a domestic market.

Neutralize competition.
If the company’s rivals are exporting and the company isn’t, this can be labeled as giving away competitive advantage. There’s no way to compete with a business that works with diversified global markets if the company is unwilling to look beyond its borders. By sending the products abroad, the business can counteract the advantages of competition and level the playing field in the chosen industry. Exporting also helps to neutralize foreign competitors that are selling within the company’s domestic market. By shipping your products overseas to their home markets, the business can offset a key imbalance.

There is endless potential in the growing global economy and little reason to avoid the opportunities provided. While exporting may not have been a practical option in the past, it is now a widespread strategy that is increasing the cash flow, competitiveness, and stability of large and small businesses alike. Sending the business’s products abroad is the next logical step for companies that are limited by their domestic markets.

Want to Export your Products to Japan?

Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best.

At COVUE IOR, we seek to make the import process simple, compliant, and accessible to all sellers of all sizes. COVUE is not an ACP. COVUE is the direct IOR: we own our license, and our compliance support is in-house. We trusted by 000’s of Sellers and Shipping providers.

SIP Global Partners $150 Million funds to bring U.S. start-ups into Japan

SIP Global Partners $150 Million fundsto bring U.S. start-ups into Japan

On March 10th of 2021, SIP Global Partners announced a new $150 million (USD) or ¥16 billion (JPY) to invest in early-stage U.S. start-ups that have the potential to expand to Japan.

Japan being centre of deliberations as a target of interest for U.S. start-up expansion. Over the last few years, it has become a top market for companies like Slack, Salesforce, Twitter with more recent addition of Clubhouse.

So far, the funds target of $150 million (¥16 billion) has acquired $75 million (¥8 billion) at a first close. It has already been used investing to five companies.

SIP Global Partners use of new fund will take a look at Series B-Stage companies that have products to offer or ones that are on the soonicorn list of new products to come to the market including those that are ready for international expansion.

The dream team will work closely with portfolio companies, creating a systematic helpline for helping them launch operations into Japan and other Asian markets.

As commented by managing partner Justin Turkat of SIP Global Partners:

“Japan is a promising market for foreign start-ups partly because an undercapitalized venture capital ecosystem means there is a smaller pool of entrepreneurs, with many of the country’s top tech talent opting to join conglomerates or the government instead.”

Japan’s start-up market even though with lots of promise and potential it is still nascent Mr. Turkat added. Although Japan is now the largest source of outward foreign direct investment in the world, and with approximately 125 million consumers and large corporations in need of scalable solutions, it’s a ready and overdue market for new tech.

“If you look at what’s happened in the last couple of years, I think Japan is open for business with U.S. start-ups with an urgency that I’ve never seen before, and we think there is a lot of tailwinds around it. You look at investments and partnerships with U.S. start-ups, it’s at record levels over the last five years and deal counts are increasing every year,” Turkat said.

Four investors based in the U.S. and Japan has supplied the fund partnering with Mr. Turkat the founder and managing partner Shigeki Saitoh alongside former director of the Japan Venture Association, general partner Jeffrey Smith and Matthew Salloway.

All four partners who invested to the launch of the fund on average have around twenty years and more of experience in observing global expansion happening early in start-ups operations, to cross border as operators and investors across the U.S. and Asia.

“I think it used to be an axiom that if you’re a U.S. start-up and you’re venture-backed, you’re not thinking of expanding overseas until your Series D round,” but companies are now eyeing foreign markets as early as their seed rounds.

SIP’s is looking at three areas to invest funds into new start-up’s:

  1. Creativity (augmented and extended reality, synthetic media and web-based platforms).
  • Productivity (artificial intelligence and machine learning, edge computing, the Internet of Things and semiconductors).
  • Safety (digital health and information security).

Furthermore, Mr. Turkat is focusing upon companies that supply core infrastructure or the economic layer for emerging technology.

For example, “on the infrastructure layer, we’re looking at 5G being rolled out globally simultaneously, then the edge computing, semiconductors, security and AI and machine learning, all around this infrastructure layer,” he said. 

Current fund’s portfolio companies that fit into the criteria are OpenRAN, Parallel Wireless and Croquet.

“Then you have the economic layer with all of these advancements, the platforms and applications sitting on top of it,” Turkat added. These other investments include Fable, Tilt Five and Kinetic.

SIP Global Partners works closely with start-up’s whose goals are to expand into new countries. After Japan, SIP also helps start-up’s enter other Asian markets, especially in ASEAN, including Thailand, Vietnam and Indonesia.

Today is the right time to enter the Japanese market. COVUE can help you establish a legal entity in Japan. We deliver a strategic approach by enabling our clients the ability to retain the same quality of legal compliance as their own in-country subsidiaries. With many more services provided by COVUE we are here to help you. Contact us now!

Credit to – https://techcrunch.com/2021/03/10/sip-global-partners-announces-first-close-of-its-150m-fund-to-bring-u-s-startups-into-japan/


Foreign Online Sellers in Japan

A “Foreign Online Seller” is a person or company outside of Japan selling and shipping to online buyers in Japan.

Foreign Online Sellers cannot fully comply with Japan import and tax rules for importing and selling products in Japan. To resolve this, the government of Japan has implemented new rules for foreign online sellers to ensure sales and import tax compliance.

Declared Import Value:

Online sellers with no company established in Japan must declare the online sale value of their imported product to be the same as the import value on their shipping invoice. Japan Customs will apply Duty and Consumer Import Tax based on the online selling price. Japan Customs also requires supporting documentation in the form of a Foreign Online Seller Report (FOSR) to be part of the Shipping Invoice. This report displays your store name or website, inventory, and selling price of all products being imported to Japan.

To ensure Sellers do not undervalue their import, Japan Customs will conduct a selling price search to ensure your selling is within an acceptable margin of the same or similar products. If your Declared Value/Selling price is below the acceptable margin, Japan Customs will apply a Fair Market import value to your shipment. You will then be charged import and duty tax based on the revised value.

During the import process, Japan Customs will:

  1. Review your Store/website and Product selling price to confirm it is the same as the import value.
  2. Check your pricing history to ensure the pricing was not recently lowered to avoid import tax
  3. Monitor your selling price to ensure your pricing does not increase excessively after import.

Sales Tax: Foreign Online Sellers

Profit Tax in Japan: all companies must comply with Profit Tax laws. To claim wholesale, purchasing, import tax, or manufacturing costs on your commercial/shipping invoice, you must sell (transferring) the product to a distributor or subsidiary (another company who will resell the products or to your subsidiary) in Japan.

  • Online sellers with no company established in Japan, cannot comply with Japan profit tax laws. Therefore, Japan Customs and Tax have implemented import requirements for online sellers. Online sellers must declare the online sale value of their imported product and pay the Duty and Taxes based on that value.
  • Japan Customs has become very strict with online sellers. Imported products will be stopped. Japan Customs will review your online account to compare your sale price to your declared value. If they do not match, you will be charged additional taxes and possible penalty fees. Multiple infractions (failure to comply) can result in your company being restricted to import products into Japan.
  • Do not modify your online pricing during import. Japan Customs has access to online seller pricing history. If Japan Customs believes you have intentionally changed your online pricing to avoid taxes, you may be restricted from all future imports.
  • As a policy, COVUE IOR services are fully compliant with Japan Customs and Tax laws. COVUE does not accept shipments that do not comply with Japan import and Tax rules and regulations.

Want to Export your Products to Japan?

Let COVUE’s regulatory experts help you to speed up the market entry process so can that you can focus on your business. We’re here to help! It’s what we do best.

At COVUE IOR, we seek to make the import process simple, compliant, and accessible to all sellers of all sizes. COVUE is not an ACP. COVUE is the direct IOR: we own our license, and our compliance support is in-house. We trusted by 000’s of Sellers and Shipping providers.