2/84 HOW TO AVOID CUSTOMS DUTIES

Japanese businessmen have been proving themselves deft in avoiding customs payments. Adrance, the largest men's toupee maker in Japan was charged with avoiding tariffs (why are wigs a protected industry?) on toupees it imported from Korea and China. It had been citing lower prices on the imports than their real costs. They are made by its subsidiaries abroad. On the other hand, Toyo Menka. one Japan's super trading companies, was more original in its customs duties evasions. It evaded 110 million yen on duties on pork imported from Taiwan, by citing higher than real prices on import documents. That is because tariffs are high on cheap priced pork and low on high priced pork, in order to protect Japanese producers. The actual importer was Kyowa Tsusho, but bank transfers made up the difference.

JAPAN LAWLETTER, February 1984