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← IX Dossier

ZRR0 IX — Japan-Side Operations Brief (researched 2026-06)

Sequencing thesis: AGENT-FIRST, GK-LATER. Run JDM through a licensed auction/export agent for your first 1-3 runs. Only form a Japanese GK + get your own auction membership once volume + a local hire justify it. A GK does NOT shortcut auction access — USS requires a 1-year-old kobutsusho license before you can even apply for direct membership.

1. GK (godo kaisha) vs export agent

What an agent gives you NOW (no Japan entity)

  • USS / TAA / CAA / Aucnet access (you legally cannot log in directly as a foreigner without a Japan-registered business + kobutsusho).
  • Auction-sheet translation + condition opinions, real-time proxy bidding to your max bid, win invoicing, deregistration, export cert, customs, port.
  • Fees: agent service ~JPY 70,000-290,000/car (JPY 140k typical for cars under JPY 2.5M; some all-in JPY 80k). Refundable deposit ~JPY 100,000 (or a few $thousand) held against your bids. Pay winning bid within 3-5 business days. (autotraderimports.com, japan-partner.com, nippon-autos.com)

What a GK unlocks LATER

  • Your OWN auction membership (after kobutsusho aged 1 yr) = no per-car agent margin, full exclusivity, dealer-to-dealer trades.
  • Warehouse lease in Japan, hire a local logistics coordinator, receive USDM cars inbound, contract a JDM mod shop directly.

GK formation — cost & time (researched 2026)

  • Registration tax JPY 60,000 (min), no notary needed. All-in JPY 100,000 ($700) DIY; ~$1,500-3,000 with a gyosei-shoshi/judicial scrivener.
  • Time: ~1-2 weeks once docs ready.
  • 100% foreign ownership allowed. Since 2015 MOJ notification, a foreigner can incorporate WITHOUT living in Japan. (mailmate.jp, e-housing.jp, venturejapan.com, employsome.com)

The two real constraints (the gaps you didn't know)

  1. Registered address in Japan — must be a real physical address that receives govt mail. A virtual office is legally accepted for registration, but a virtual office will NOT satisfy kobutsusho (police want a real premises) and may not satisfy auction-house site checks.
  2. Resident representative / executive manager — if the managing member is non-resident, in practice you need a Japan-resident executive manager to operate (open bank account, sign leases, deal with police/auctions). Incorporation no longer legally requires a resident director, but day-to-day operation does. This is your "Japan-resident hire" / logistics-coordinator role.
  3. Business Manager visa is NOW EXPENSIVE — if YOU want to live/run it in Japan on a Business Manager visa, paid-in capital requirement jumped from JPY 5M to JPY 30M in October 2025 (~$200k). DO NOT chase this early. Stay non-resident owner + hire a resident manager instead. (housingjapan.com, smartstartjapan.com)

2. Used-car dealer license (kobutsusho kyoka) + USS membership

  • Kobutsusho (secondhand goods dealer license) issued by prefectural police, fee ~JPY 19,000, needs a real office premises + a Japan-resident applicant (no nationality bar, but student visa not accepted). ~40 days to issue. (small-business-japan.com, japan-law-tax.com)
  • USS direct membership requires the kobutsusho to have been held >= 1 YEAR before applying, plus Japan-registered business, full-time Japanese-speaking staff, invoicing (qualified invoice) registration number, joint guarantor / SS membership, real-estate valuation cert. (ussnet.co.jp, providecars.co.jp)
  • IMPLICATION: even after you form the GK, there is a built-in ~1-year+ lag before your own USS account. Keep the agent relationship through that whole window. Bridge plan: GK + kobutsusho day 1, agent for ~12-15 months, then flip to direct.

3. Export process (what the agent/your GK does per car)

  1. Win at auction -> pay -> receive vehicle + Japanese registration (shaken).
  2. Export deregistration: apply to the Land Transport Office (MLIT) for Registration Deletion -> get the Export Certificate (yushutsu masho) = the de-reg paper that travels as the title document.
  3. Japan Customs export declaration (permits export, confirms de-reg).
  4. English translation of the export cert (US CBP / state DMV need it). (customs.go.jp 5502, sanacorporation.co.jp, japaninspection.org)
  • Auction-sheet grading: every car has a sheet — overall grade (e.g. 4, 4.5, R = repaired), interior letter (A-D), plus a body map of dings/rust. This sheet is the single most important data input for your pricing engine (feed grade + map + mileage + options into the valuation model).

4. Shipping JP -> US (Washington ports)

  • RoRo = cheapest for running, standard cars: ~$900-2,000/car to US west coast historically; door-to-port. Container (single or consolidated 2-4 cars) = better for high-value/non-running/parts-loaded builds; more protection, ~$2,000-4,000 range. (wcshipping.com, rorofromusa.com)
  • Transit Japan -> WA (Tacoma): ~2-4 weeks (10-45 days incl. loading).
  • TAILWIND (time-boxed): USTR Section 301 China-vessel fee SUSPENDED Nov 10 2025 -> Nov 9 2026 (US-China deal). Fee had been $46/net ton. RoRo is temporarily cheaper — front-load runs inside this window if you can. (ustr.gov, wcshipping.com, vedderprice.com)
  • Port of Tacoma requires a customs broker for ALL imports. If actual vehicle dimensions differ from the export cert, +JPY 20,000 re-measure fee. (cbp.gov Tacoma, japancardirect.com)

US-side entry (the receiving interface — you're importer of record commercially)

  • 25-year rule: vehicles >= 25 yrs (by month of build) are EXEMPT from FMVSS (NHTSA) and EPA emissions. 2026 cutoff = built on/before relevant 2001 month. Broker files EPA 3520-1 + DOT HS-7 exemption forms.
  • Duty: classic JDM under HTS 9903.94.04 generally exempt from the 25% Section 232 auto tariff -> just 2.5% duty on declared value.
  • Commercial bond: importing for commerce >= $2,500 requires a CBP bond. As a repeat importer get a continuous bond (min $50,000 face, ~$500-1,000/yr premium) not single-entry. PLUS a DOT bond = 1.5x the vehicle's dutiable value per non-conforming/older vehicle entry. (cbp.gov, wcshipping.com, iiacorp.org, projectjdm.org, tgal.us)

5. Japan warehouse + mod shop + receiving USDM inbound (GK-stage)

  • A GK + kobutsusho + warehouse lease + resident logistics coordinator lets you: stage cars, do QA on arrival, contract a cheaper JDM mod shop to do cross-builds/mods BEFORE shipping (cheaper labor + parts access), and receive USDM cars inbound if you sell into Japan.
  • Note: USDM cars INTO Japan need their own JP import + shaken/compliance path (separate workstream; only matters once you sell westbound). Keep this Phase 3+; do not scope it into the first JDM runs.

RECOMMENDED SEQUENCE

  1. Run 1-3 via agent (Provide Cars / AutoTrader Imports / Japan Car Direct class). Validate sourcing, pricing engine, lane, and US entry.
  2. Form GK + kobutsusho once a Japan-resident hire is lined up (this starts the 1-yr USS clock; do it the day you commit to volume).
  3. ~12-15 months in: own USS membership, warehouse, mod-shop contract, drop the agent margin.
  4. Phase 3+: USDM-inbound + Japan retail, only after westbound proven.