Japanese watches are renowned worldwide for their high precision and exquisite design. Consequently, there is a massive demand for them among international watch enthusiasts and buyers.
However, it is crucial to remember that a watch is both a “precision instrument” and a “high-value item.” Shipping a mechanical timepiece is a completely different ballgame compared to mailing a T-shirt or general merchandise.
If you aren’t careful, you might face nightmares like these
” The package arrived, but the import duties are way too high. I want to refuse the shipment!”
” My exotic leather strap was confiscated by customs!”
To prevent these disasters before they happen, it is absolutely essential to establish a firm “pre-shipping agreement” with your customer.
In this post, I will share the 5 critical points that we strictly confirm with every international client before shipping our watches. By following these rules, you can ensure a smooth and safe delivery.
1. Clearly State that Import Duties are the Buyer’s Responsibility (DDU Terms)
The most common source of friction in international e-commerce is, without a doubt, Import Duties and Taxes.
Whatever platform you use to sell or buy, the standard for international shipping is almost always “DDU” (Delivered Duty Unpaid). It is vital to understand this concept to avoid “sticker shock” upon delivery.
What is DDU (Delivered Duty Unpaid)?
DDU is a trade term defined by the International Chamber of Commerce (ICC) within their Incoterms rules. It clearly divides the responsibilities between the sender and the receiver.
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- The Seller (Exporter)
We are responsible for the shipping costs and risks involved in transporting the goods to the destination country. - The Buyer (Importer)
You are responsible for all import clearance procedures, customs duties, and local consumption taxes.
- The Seller (Exporter)
We pay for the shipping, but you pay for the taxes.
Make sure this is crystal clear before the package leaves Japan.
To be more specific, here is the breakdown of responsibilities under DDU (or DAP) terms
| Seller’s (Exporter’s) Responsibilities | Buyer’s (Importer’s) Responsibilities |
| ・Export Packaging & Clearance We handle the proper packing of the watch for export and complete all necessary export customs procedures in Japan. ・International Shipping Costs We cover the transportation fees to the designated destination (e.g., your country’s port, warehouse, or your doorstep). ・Risk Liability We bear the risk of loss or damage until the goods arrive at the destination. (Note: It is common practice for us to arrange shipping insurance to cover this risk). | ・Import Customs Clearance: You are responsible for handling the procedures to clear the goods through customs upon arrival in your country. ・Payment of Taxes & Fees: You must pay all Import Duties, Consumption Taxes (VAT/GST), and other customs handling fees. ・Unloading at Destination: You are responsible for receiving/unloading the cargo at the destination. *(Note: This depends on the specific contract or carrier). |
The “Free Shipping” Misconception: Why Clear Communication is Key
It is highly common for international customers to mistakenly assume that “Shipping Included” or “Free Shipping” means “All Costs Included.”
To prevent your customers from being shocked by an unexpected invoice from the courier (like FedEx or DHL) upon delivery, it is crucial to explicitly communicate the following points before completing the order.
- Duties are NOT in the Price
Import duties, local consumption taxes (VAT/GST), and customs clearance fees are not included in the item price or the shipping cost. - Out of the Seller’s Control
These taxes are assessed and collected directly by the destination country’s customs authority. As the seller, we have absolutely zero control over these rates or the collection process. - 100% Buyer’s Responsibility
The payment of any and all customs-related charges is entirely the responsibility of the customer (the importer).
2. Why We Strictly Refuse “Undervaluing” or Marking as “Gift”
“Undervaluing” is the illegal practice of declaring a lower price on the commercial invoice to reduce import duties.
We frequently receive requests from international customers asking: “Can you mark this as a ‘Gift’?” or “Please declare the value as $50 instead of $1,000.”
While we understand you want to save on taxes, we strictly refuse all such requests. We declare the Full Retail Value on all shipping documents without exception.
Here are the two critical reasons why—and how this actually protects YOU, the buyer.
Reason 1: It Voids the Shipping Insurance (Most Important)
This is the biggest risk for you. Shipping insurance only covers up to the declared value on the invoice.
- Scenario: You buy a watch for 100,000 JPY, but ask us to declare it as 10,000 JPY to save on taxes.
- The Risk: If the package is lost, stolen, or damaged during transit (which can happen!), the insurance company will only pay out 10,000 JPY.
You would lose 90,000 JPY just to save a small amount on taxes. To ensure your valuable timepiece is fully protected, we must declare the full price.
Reason 2: Legal Compliance & Risk of Seizure
Undervaluing is considered tax evasion and fraud. As a legitimate business in Japan, we strictly adhere to international trade laws.
Furthermore, customs officers are experts. They know the market value of high-end Japanese watches (like Seiko, Citizen, or Casio). If they suspect the declared value is too low
- The package may be confiscated (seized).
- You (the importer) may face heavy fines or penalties.
- Delivery will be significantly delayed.
For the safety of your purchase and to ensure smooth delivery, honesty is the only policy we follow.
3. CITES Restrictions: Why We Can’t Ship Exotic Leather Straps
Luxury watches often come with straps made from Crocodile, Alligator, or Lizard. However, these materials are protected under the Washington Convention (CITES).
International trade of these exotic leathers is strictly regulated. Shipping them without a special government permit (which takes months to acquire) is illegal.
The Risk
If we ship a watch with a crocodile strap without a CITES permit, customs will likely
- Confiscate the strap (it will be cut off and destroyed).
- In the worst-case scenario, seize the entire watch.
Our Policy for International Shipping
To guarantee the safe arrival of your timepiece, we enforce the following rules
- We DO NOT export exotic leather straps.
Even if the strap is original to the watch, we cannot ship it overseas. - Option A: Replace with Embossed Calfskin
We can replace the strap with a high-quality cow leather strap embossed with a crocodile pattern (which is perfectly legal). - Option B: Ship “Head Only”
We remove the strap entirely and ship only the watch head.
4. Shipping to the USA: The “Valuation Breakdown” Rule
If you are located in the United States, there is one more crucial rule you need to know. US Customs is extremely strict regarding watch imports.
Unlike other countries, simply writing “Wrist Watch – $1,000” on the invoice is not enough for US Customs. If we do this, the package will be held at the border, and FedEx/DHL will demand detailed information from you.
To avoid this delay, we must provide a “Constructive Breakdown” of the watch’s value on the invoice.
The Required Breakdown Structure:
US import duties are calculated differently for the movement, the case, and the strap. Therefore, we must split the total price into these three components.
- Value of the Movement: $ XXX.xx
- Value of the Case: $ XXX.xx
- Value of the Strap: $ XXX.xx
- = Total Value: (Must match the sale price)
What We Do for You
We are experienced in shipping to the US. We will prepare this breakdown in advance and include it on the commercial invoice so that your package clears customs as smoothly as possible.
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5. Returns & Warranty: Who Pays for Shipping?
Even with our rigorous Quality Control (QC), there is a non-zero chance that a mechanical watch might suffer from shocks or vibrations during long-distance transit.
It is crucial to agree on the “What If” scenarios beforehand. Since international shipping costs are high, we have a strict line regarding who covers these expenses.
- Case A: Initial Defects (Dead on Arrival)
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Responsibility: Us (The Seller)
If the watch arrives broken or not functioning, we will cover the round-trip shipping costs to repair or replace it.
- Case B: Customer Preference (e.g., “Change of Mind”)
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Responsibility: You (The Buyer)
If you wish to return the watch for reasons such as “It looks different than I imagined” or “I just don’t want it anymore,” you must cover
- Round-trip shipping costs.
- Any re-import taxes charged by Japanese Customs upon return.
We will discuss and determine the cause of the issue through close communication with you.
Conclusion: Strict Rules Create Safe Transactions
These rules might sound a bit strict or rigid at first glance. However, presenting these agreements upfront is actually the best way to protect you, the customer.
We establish these protocols to avoid worst-case nightmares such as
“I can’t receive my watch because of a customs dispute!”
“The watch was lost, and I have no insurance coverage!”
As professionals, we prioritize strict export compliance to ensure your wonderful timepiece arrives safely in your hands.
Looking to Build Your Own Watch Brand? We Handle Manufacturing AND Logistics.
Creating a beautiful watch is meaningless if it never reaches the customer’s wrist.
We offer total support, not just in OEM/ODM Watch Manufacturing, but also in the complex export management and logistics we discussed in this article.
- “I want to sell my brand globally.”
- “I want to avoid shipping troubles.”
If you are a brand owner thinking about these issues, please feel free to contact us. We support you all the way from the factory floor to the customer’s door.
