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The ‘Flexible Declaration Scheme’ of Japan Customs:Prevalence, Determinants, and Consequences

Author

Listed:
  • Negishi Shintaro

    (Visiting Scholar, Policy Research Institute, Ministry of Finance)

  • Sasahara Akira

    (Research Fellow, Policy Research Institute, Ministry of Finance / Associate Professor, Faculty of Economics, Keio University)

  • Otsuka Takanori

    (Visiting Scholar, Policy Research Institute, Ministry of Finance)

  • Ito Fumiharu

    (Visiting Scholar, Policy Research Institute, Ministry of Finance)

Abstract

This article examines the prevalence, determinants, and consequences of the Flexible Declaration Scheme in Japan, introduced in October 2017, which allows exporters and importers to declare transactions at a customs office where their shipments are not stored. Regarding the prevalence, our results show that the utilization rate of the Flexible Declaration Scheme increased by 27 percentage points for exports and 18 percentage points for imports over around four years after its introduction. We also show that the utilization rate varies significantly across sectors, regions, and years. Regarding the determinants, we find that customs brokers play the most significant role in explaining variations in the utilization rate relative to other factors such as partner countries and products. Regarding the consequences, we find that exporters and importers using this Flexible Declaration Scheme reduced the number of customs offices used for declarations and storage by more than 50%, suggesting that this customs procedure resulted in a consolidation of customs clearance operations.

Suggested Citation

  • Negishi Shintaro & Sasahara Akira & Otsuka Takanori & Ito Fumiharu, 2026. "The ‘Flexible Declaration Scheme’ of Japan Customs:Prevalence, Determinants, and Consequences," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 22(1), pages 1-34, March.
    • Handle: RePEc:mof:journl:ppr22_01_01
    DOI: 10.57520/prippr.22-1-1
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    References listed on IDEAS

    as
    1. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing the Benefits of Trade Facilitation: A Global Perspective," The World Economy, Wiley Blackwell, vol. 28(6), pages 841-871, June.
    2. John S. Wilson & Catherine L. Mann & Tsunehiro Otsuki, 2005. "Assessing The Potential Benefit Of Trade Facilitation: A Global Perspective," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 8, pages 121-160, World Scientific Publishing Co. Pte. Ltd..
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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F6 - International Economics - - Economic Impacts of Globalization

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