Like everywhere, the moving and relocation industry in Japan experienced massive upheaval during the “pandemic years,” affected by border closures, supply chain issues and exorbitant freight costs. The first months of 2023 have seen normal service resume somewhat however, with border restrictions now removed, freight costs returning to manageable levels and fewer challenges when it comes to securing freight bookings. 

Japan remains a draw for expats from all over the world and experiences a constant stream of inbound and outbound household goods shipments. That’s not to say it’s not without its challenges, however. Japan was ranked 29th in the World Bank’s Ease of Doing Business Index in 2020—a respectable showing that reflects the reality of doing business in the world’s third largest economy where considerable opportunities can exist for foreign companies with the right product and approach and a willingness to commit for the long term. 

A simple search of “doing business in Japan” brings up familiar terms such as “relationship-oriented culture”, “multiple layers of approvals”, all of which can be considered standard, but as with any market, there are also nuances particular to Japan that permeate business life and can present challenges when it comes to interpreting rules for some of the core procedures in our business. It is well acknowledged that Japan can be a very bureaucratic country in many ways and it’s not unusual to have a dense network of regulations, certifications, procedures, and authorities with convoluted approval procedures for seemingly basic processes which may not need approval in other countries. In fact, many of these restrictions can act as deterrents against newcomers to existing industries, but for those who make the move and persevere, it can be a very rewarding experience.

The pandemic was a catalyst for much-needed changes to some outdated procedures, such as stamping and sealing the hard copy of documents. For our industry in particular, the shift for both movers and subcontractors towards a more digital approach to office work and reduced reliance on hard copies of documents is clear, with online surveys and digital inventories slowly becoming the norm, rather the exception. One area to watch is regarding the “Unaccompanied Baggage Declaration Form” that everyone entering Japan is required to fill out on arrival. Those with shipments must request two copies and have both stamped by the customs officers at the airport of arrival, with one original shared with their mover for the customs clearance of any unaccompanied personal effects.

The advent and promotion of the new Digital Agency in 2021—operating under the slogan “Government as a Startup”—with the aim of strengthening the digitalization of Japan, is producing change. The customs declaration for use by travelers has been given a digital makeover in the form of a QR code that is generated by inputting the data online. While not yet available for use by those with unaccompanied baggage shipments, it seems the logical next step to expand the technology to share with the customs office, so this is a space to watch. 

In terms of infrastructure developments in Japan, for the most part, the infrastructure is already in place and well maintained, but in the last year, we have seen one development that has the potential to impact our business going forward. Customs clearance of household goods containers at Yokohama port has recently relocated to Honmoku Wharf. With limited space in a busy port, the new location cannot facilitate the devanning of containers and loading into smaller trucks. As is common in Japan, containers must be devanned at port, as it is not practical to haul containers on the narrow residential roads that are a feature not just of Tokyo neighborhoods, but also many parts of Japan.

With the inability to complete the devanning and reloading at the customs sites once the shipment is cleared, moving companies with limited, or no bonded warehouse space, are now looking at the prospect of extra dray charges to haul the container elsewhere at port for reloading. While the impact is not yet seen, since space remains available at the former customs site, the potential for additional expenses in the near future and how they can be covered is a discussion to be had sooner rather than later.

While infrastructure remains robust, what may not be immediately clear to many quoting on moves to Japan is that despite there being a total of approximately 994 ports in Japan, there are a limited number of ports where international shipments can be cleared. The most common seaports continue to be Yokohama covering East Japan and Kobe covering West Japan, with air shipments coming through Narita / Haneda (Tokyo) or Kansai (Osaka). It is not usual for moving companies in Japan to confront different procedures depending on which port the shipment is arriving at—while the basic customs rules and process remain the same the local interpretation can differ, however, sometimes leading to prolonged clearance times and additional work to prepare very detailed packing lists for air shipments.

Even when it comes to diplomatic cargo, the clearance for air shipments is akin to clearing commercial cargo, with itemized packing lists and HS code entry required for each item, while the same process is not applied for clearing sea shipments under diplomatic privilege. Is it a challenge for movers? Yes, most definitely, but it is also accepted as part of the process and something we just have to work with. While it can be frustrating for origin agents to prepare such detailed lists, having origin agents complete this groundwork in advance can help to save on port charges and avoid delays once the shipments arrive in Japan.

Our office in Japan benefits from brand recognition, but that doesn’t mean we rely on that alone. With the value of very experienced staff in all key roles and embracing the customer service ethic prevalent in Japan, we take an approach of transparency and educating both clients and booking agents, so they can make informed and confident decisions throughout the moving process. Keeping stakeholders informed and up-to-date reduces the stress involved in a move, so having a fortified process of communication in place while utilizing the all the tools and technology available is a must. We carefully build and understand relationships, being mindful of the fact that relationships in Japan may not be defined by legal contracts alone—you need to work on your relationships and take care of them. Satisfied clients continue to lead to referrals and a strong, loyal customer base who will return to you years after you first served them.

Founded in 1983, Allied Japan is part of the Allied Network and supports both international and domestic moves in Japan, with a sister office, SIRVA Relocation Japan, supporting destination services for expats relocating to and from Japan. A proud member of IAM, we look forward to continuing to build relationships with the IAM family throughout the world.