Exporting to Japan - Trade Finance Global

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Exporting to Japan

Last updated on 05 Aug 2024
01 Mar 2019 . 3 min read

Japan Country Profile

Official Name (Local Language) Nihon-koku; Nippon-koku

Capital Tokyo

Population 126,702,133

Currency Japanese Yen

GDP $4,730 billion

Languages Japanese

Telephone Dial In 81

Japan Imports Profile

Exports ($m USD) 671,474

Number of Imports Products 4,426

Number of Imports Partners 213

Japan Economic Statistics




Government Website
https://www.japan.go.jp/
Sovereign Ratingshttps://countryeconomy.com/ratings/japan
Central BankBank of Japan
Currency USD Exchange Rate107.1
Unemployment Rate3.2%
Population below poverty line16.1%
Inflation Rate-0.1%
Prime Lending Rate0.3%
GDP$4,730 billion
GDP Pro Capita (PPP)$38,900
Currency NameJapanese Yen
Currency CodeJPY
World Bank ClassificationHigh Income
Competitive Industrial Performance8/138
Corruption Perceptions Index20/180
Ease of Doing Business39/190
Enabling Trade Index16/190

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Exporting to Japan

Recognised as the fourth most affluent country in the world Japan imported more than $640 billion worth of products last year. This number reflected a significant downward trajectory however with importing falling by 15% in recent years. A significant factor in this drop is the decrease in value of mineral fuels, with imports from Saudi Arabia and the United Arab Emirates reducing by 40% during that period.

Annual imports in Japan averaged 2750 JPY billion between 1960 and 2015 (1 USD = appx 110 JPY) with figures as high as 8000JPY billion in recent years. Major imports include mineral fuels (30%), machinery (over 20%) and petroleum (15%) while major import partners include China ($160 billion US), the United States ($65 billion) and Australia ($45 billion).

Exporting to Japan: What is trade finance?

Trade finance is a revolving facility which alternative financiers offer – it enables SMEs to buy stock and can help ease the pressure from cash flow issues.

Typically, an alternative financier will fund most of the cost of the product, including charges (e.g. VAT charges).

Trade finance offers upsides over more traditional bank finance such as bridging mortgages or loans. Trade finance provides quick funding without affecting existing relationships with banks.

How Trade finance is a revolving facility which alternative financiers offer – it enables SMEs to buy stock and can help ease the pressure from cash flow issues.

Typically, an alternative financier will fund most of the cost of the product, including charges (e.g. VAT charges).

Trade finance offers upsides over more traditional bank finance such as bridging mortgages or loans. Trade finance provides quick funding without affecting existing relationships with banks.

How does it work?
If you’re a firm importing or exporting inventory internationally, then a trade finance facility would allow you to fund this through offering a LC (letter of credit) or some form of cash advance.

I’m looking to export to Japan, how can Trade Finance Global help, and how does it work?
If you’re looking to export stock supplies to other markets, you may need export finance, which is an agreement between you (the exporter), and the importer from overseas. A non-bank lender will advance you the cost of producing the products that you’re exporting (as a debt instrument), either once you have shipped the goods, or before you have produced them. Once your foreign importer has received the inventory and pays you for the import, you will repay the advance loan from the lender over an agreed period of time.does it work?
If you’re a firm importing or exporting inventory internationally, then a trade finance facility would allow you to fund this through offering a LC (letter of credit) or some form of cash advance.

I’m looking to export to Japan, how can Trade Finance Global help, and how does it work?
If you’re looking to export stock supplies to other markets, you may need export finance, which is an agreement between you (the exporter), and the importer from overseas. A non-bank lender will advance you the cost of producing the products that you’re exporting (as a debt instrument), either once you have shipped the goods, or before you have produced them. Once your foreign importer has received the inventory and pays you for the import, you will repay the advance loan from the lender over an agreed period of time.

Chart Showing GDP Growth Compared to rest of world

GDP Composition for Japan

Agriculture

1.2%

Vegetables, rice, fish, poultry, fruit, dairy products, pork, beef, flowers, potatoes/taros/yams, sugar cane, tea, legumes, wheat and barley

Industry

27.7%

Motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed foods

Services

71.1%

Map

Top 5 import Partners

CountryTrade% Partner Share
United States
135,06019.35
China132,78619.02
Korea, Rep.
53,3087.64
Other Asia, nes
40,6645.82
Hong Kong, China
35,4375.08

Top 5 import Products

Export ProductNumber
Petroleum oils and oils obtained from bituminou
9.5%
Natural gas, liquefied
6.0%
Transmission apparatus, for radioteleph incorpo
3.7%
Bituminous coal, not agglomerated
3.4%
Monolithic integrated circuits, digital
2.9%

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