What Is the Difference in Taxes Between Personal and Commercial Imports?

A Practical Guide to Customs Duty and Consumption Tax Calculations Using Food Imports as an Example

This article explains how customs duties and consumption tax are calculated for food imports, from a practical, real-world perspective.

Why “Taxes Are Higher Than Expected” in Food Imports

People who are new to food importing often say things like:

• “The taxes seem higher than what I found online.”
• “I followed an explanation for personal imports, but it didn’t match.”
• “I thought customs duty would be low, but the consumption tax is heavy.”

In most cases, the reason is simple:

👉 They are confusing the tax rules for personal imports and commercial imports.

This is especially critical for food imports, because:

• Almost all food imports are treated as commercial imports
• The personal import “60% valuation rule” does not apply

As a result, the tax calculation method is fundamentally different.

In this article, using food imports as the main example, we will explain for beginners to intermediate readers:

• The difference in tax rules between personal and commercial imports
• How customs duty and consumption tax are calculated for commercial (food) imports
• Common mistakes made in real import operations

The Key Conclusion First: Food Imports Are Almost Always “Commercial Imports”

Here is the most important takeaway upfront.

👉 Food imported for resale is, in principle, always treated as a commercial import.

• Corporations and sole proprietors → Commercial import
• Side businesses and small-lot imports → Commercial import
• Selling on Amazon or through retail channels → Commercial import

The idea that “small quantities qualify as personal imports” does not apply to food.

Differences in Tax Rules Between Personal and Commercial Imports

Comparison of Tax Calculation Rules

👉 The biggest difference: the 60% rule cannot be used for food imports.

Basic Tax Structure for Commercial (Food) Imports

There are two types of taxes paid when importing food:

① Customs Duty

• Duty rates vary by food category
• Processed foods and confectionery generally have duty rates
• Rates may also change depending on ingredients

② Consumption Tax

• Flat rate of 10%
• Applies even if customs duty is 0%

👉 Customs duty + consumption tax = total import taxes

For more detail, see:
→ How to Legally Reduce Customs Duty and Consumption Tax for Food Imports

Understanding “Taxable Value” in Commercial Imports

Taxable Value for Commercial Imports (Very Important)

For commercial imports, the taxable value is simply the total of:

• Product price (FOB or CIF value, depending on Incoterms)
• International freight
• Insurance (if applicable)

Taxable value = Product price + International freight + Insurance

👉 There is no 60% reduction.

If you think about this using the same logic as personal imports, it leads to the feeling that “taxes are too high.”

How Taxes Are Calculated for Food Imports

Step ① Calculate the Taxable Value

Example:

• Product price: JPY 100,000
• International freight: JPY 20,000

Taxable value = JPY 120,000

Step ② Calculate Customs Duty

Duty rates depend on the HS code and food category.

• Some food items: 0%
• Confectionery and processed foods: several percent to around 10%

Assuming a duty rate of 5%:

Customs duty = 120,000 × 5% = JPY 6,000

Step ③ Calculate Consumption Tax

For commercial imports, consumption tax is calculated as:

(Taxable value + customs duty) × 10%

Consumption tax = (120,000 + 6,000) × 10% = JPY 12,600

Total Taxes Payable

• Customs duty: JPY 6,000
• Consumption tax: JPY 12,600
• Total: JPY 18,600

👉 A key feature of food imports is that consumption tax accounts for a very large portion of the total tax burden.

Why There Is Such a Big Difference Between Personal and Food Imports

Even for the same product:

• Personal import: 60% valuation
• Commercial import: 100% valuation

This means the taxable value itself is different.

Example: Product + freight = JPY 120,000

• Personal import: 120,000 × 0.6 = JPY 72,000
• Commercial import: JPY 120,000

👉 This difference is the real reason taxes feel “higher than expected.”

In Food Imports, Classification Errors Are Riskier Than Taxes

In commercial (food) imports, tax rates may change due to:

• Incorrect HS code classification
• Misunderstanding of the food category
• Differences in ingredients and composition

👉 Attempting to reduce taxes through self-judged classification can result in post-clearance corrections or additional assessments.

Related article:
→ How to Find the Correct HS Code: Three Common Beginner Mistakes

Common Misconceptions About Food Imports

❌ “It’s a small quantity, so it’s a personal import.”
→ If it’s for resale, it’s a commercial import.

❌ “Customs duty is 0%, so taxes will be low.”
→ Consumption tax of 10% always applies.

❌ “I followed an article about personal imports online.”
→ Those rules do not apply to food imports.

Summary: Always Assume “Commercial Import” for Food

• Food imports are, in principle, all commercial imports
• The personal import 60% rule cannot be used
• Taxable value is 100% of product price plus freight
• Consumption tax has a larger impact than customs duty
• Accurate HS classification is the key to avoiding tax trouble

👉 Food import taxes are not “high” — the rules are simply different.
Once you understand this, cost calculations become much easier.

Reference Materials

1️⃣ Japan Customs: Differences Between Personal and Commercial Imports
https://www.customs.go.jp/english/index.htm

2️⃣ Japan Customs: How Customs Duties Work and How to Find Tariff Rates
https://www.customs.go.jp/tariff/

3️⃣ National Tax Agency of Japan: Treatment of Consumption Tax on Imports
https://www.nta.go.jp/english/index.htm

4️⃣ Ministry of Health, Labour and Welfare: Food Import Procedures (Commercial Basis)
https://www.mhlw.go.jp/stf/english/index.html