Notice Regarding the Termination of Advance Payment Services for Duties and Consumption Taxes in Import Customs Clearance Operations

Nippon Express Co., Ltd. (President: Shinjiro Takezoe), a group company of NIPPON EXPRESS HOLDINGS, INC. (President: Satoshi Horikiri), will sequentially terminate its advance payment services for duties and consumption taxes in import customs clearance operations at all its domestic branches by the end of September 2026, transitioning customers to a "direct payment method." This change is driven by the recent trends towards optimizing transactions and promoting digitalization within the logistics industry.

Background and Objectives

Traditionally, it has been a common practice for customs brokers to temporarily advance payments for duties and consumption taxes during import customs clearance. However, in recent years, there has been an acceleration in societal movements advocating for the optimization of transaction environments throughout the logistics industry, alongside the government's promotion of electronic payment methods.

As an AEO (Authorized Economic Operator) certified company, we are committed to contributing to a fair transaction environment within the industry. To build a sound and sustainable logistics system, we have decided to end our advance payment services at all branches nationwide and transition to a new system.

2. Main Impacts of This Change

The transition from advance payment to a direct payment method by customers is expected to yield the following benefits:

- Transparency in Tax Management

By shifting to "voluntary tax payment" by customers themselves, the flow of tax funds will become clear, leading to highly transparent tax management.

- Optimization and Efficiency of Business Processes

Leveraging electronic payment methods linked with customs systems will enable faster accounting processing for customers and improve the efficiency of the overall process.

3. Implementation Timeline

Advance payment services will be sequentially terminated at all branches nationwide by the end of September 2026.

4. Recommended Payment Methods

We request that customers switch to one of the following methods as an alternative to advance payments:

- Real-time Account Transfer (Direct Payment)

This method allows for automatic deduction from a customer's pre-designated account by customs at the time of declaration.

- Electronic Payment via Multi-Payment Network

This method involves customers making payments themselves using internet banking, ATMs, or other available channels.

- Utilization of the Payment Deadline Extension System

This system allows for an extension of the payment deadline by up to three months, provided collateral is offered (generally not required for special importers).

We will continue to thoroughly adhere to laws and regulations and enhance our quality to contribute to the smooth facilitation of our customers' international logistics. We kindly ask for your understanding and cooperation regarding the purpose of this initiative.

About the NX Group:

Since its establishment in 1937, the NX Group has been connecting people, companies, and regions through the transportation of goods, evolving alongside societal development. As a global logistics company with approximately 78,000 employees in 57 countries and regions, we provide high-quality logistics services utilizing land, sea, and air transport modes, as well as warehousing and IT.

The NX Group's corporate message, "We Find the Way," expresses our strong will and confidence to find the best solution in any situation and achieve our goals. We aim to be more than just a transporter; we strive to be a partner in co-creating our customers' future by providing sustainable and environmentally conscious supply chain solutions.

For more detailed information about our company, please visit https://www.nipponexpress-holdings.com/ja/