Japan saw duty-free imports of items valued under 10,000 yen surge 20% to 209 million units in 2025, now representing over 90% of all imports, straining customs resources and disrupting domestic markets, Nikkei Asia reported on Tuesday, citing unnamed government sources.
The tax exemption, originally designed for personal-use goods, is increasingly exploited through shipment splitting and false declarations, with over 3,100 abuse cases recorded in 2024, the news daily said.
Domestic businesses face growing pricing pressure as cheap imports flood the market, prompting the Finance Ministry to establish an expert panel last June to address the issue, the publication said.
In response, authorities plan to phase out the personal-use import exemption starting April 2028 to restore fair competition, the report said.
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