Exporting in large volume
Hello,
A little background: a friend of mine in my home country is in need of some niche product from Japan for some construction project. They could probably find a reseller back in the country, but from my research there are at least about 3 middle man company in the chain, so they figured why don't I export them and keep the commission.
The problem: I'm no expert in tax, laws and stuff, but the cost of those alone (not including tax, shipping, etc.) is over 1M JPY and there might not be a problem if I can pay these with my saving and take payment back in local currency (might be due tax too, but I'm less concerned about that). But since I don't have that spare money I'll need to have them send me the money, which if I understand correctly, would need to be reported and taxed as if this were my income. In order to have that deducted as expense I'd need to file a 開業届 to establish some kind of personal business status. I don't mind paying tax on the profit part, by the way.
The problem #2: Am I even legally able to do that? That is effectively the same as establishing a business, correct? I'm on HSP １号(ロ) status if that is of any use.
Legally I don't think I can obtain said license with my current status, but did I had to do so in the first place? How are people normally exporting large sum of goods anyway? Any advice would be appreciated, thanks!
Edit: Thanks for all the comments! Would probably reconsider the feasibility of this a bit...
Posted Sep 2, 2020, 9:14 AM UTC · edited
Sounds like a bad idea, especially if this is a "one off" and your friend isn't going to buy regularly.
What you need to consider is not just the upside (profit) but also... what if things go wrong? (And things go wrong all the time when buying/selling goods internationally.) I.e., the product gets damaged during shipment and needs immediate replacement. Customs delays. Ship catches on fire. Labor unrest at the port. Truckers decide to strike. Etc.
Are you able and willing to handle all that? Especially in construction, often it's super important that supplies arrive at the job site at a certain date (not early and not late) -- or else the whole construction stops (costing $$$). Can you guarantee that?
Now, if your friend will regularly buy in quantity and/or if you can find other clients, then it might be worth opening a proper business to handle this.
Even so, there might be significant restrictions... such as:
Anyway, I suggest doing a proper business case + research and not try to make a "quick buck" out of this.
Otherwise, I suggest finding an existing dealer your friend can order from directly. Maybe you can get a "finders fee".