Japan bans shipping of tax-free goods starting today

Japan announced that tax-free goods can no longer be shipped via international parcels starting today (Apr 1).

Under the new guidelines, foreign travelers will be obligated to remit a 10 percent consumption tax when shipping tax-free goods, as tax exemptions will only be granted if travelers take the items out of the country personally.

While the new regulations will affect duty-free items purchased after April 1, items bought before March 31 will still be subject to the old rules. 

The restrictions will apply to visitors to Japan for less than six months, as well as citizens temporarily returning home.

If visitors leave Japan after April 1 and do not carry or display their purchased duty-free items, an additional 10 percent consumption tax will be charged. 

Japan has announced a reform to its consumption tax refund policy, whereby starting November 1, 2026, foreign travelers will only be able to claim refunds at the airport.

There will be no upper limit on refund amounts nor the usage of transparent bags for packaging tax-refunded goods.

The introduction of the new rules is expected to pose challenges to many small businesses and online retailers as they often buy large quantities of duty-free products in Japan and ship them to Hong Kong or mainland China for resale, profiting from the price differences. 

With the prohibition on shipping the duty-free goods, the businesses will have to either personally transport their purchases back or form direct partnerships with local retailers in Japan, potentially driving up their costs.