HERE COMES THE PAIN

Once your car sets sail you've got a few weeks to sort things out. Don't procrastinate. You need to have a plan for all the line items listed in Group 2. Let's discuss.

• ISF Filing - You're required to file an ISF filing with US Customs that tells them what's coming in your shipment. This is supposed to be done before your vessel sails and must be completed before it lands or you risk a hefty fine. If you're working with a freight forwarder, this is the first thing they'll ask you about. You can do this separately via websites like EasyISF.com if you'd rather not use a freight forwarder. The first time you do it, you'll probably have to sign some Power of Attorney paperwork to let somebody file on your behalf, and you'll usually incur a setup fee as they get you added to their system. From all I've found, it's not something an individual can do through direct government interaction to save $50-$100.
• Unloading - The port your vehicle arrives in will charge you for unloading the ship and parking your car in some secure lot. Longshoremen gonna longshore. This is unavoidable. If you use a freight forwarder, the port will work with them and they'll pay on your behalf and then pass on the bill to you once everything is done. If you don't use a freight forwarder, expect to be contacted by the shipping line and having to pay yet another invoice via wire transfer.
• Duty - This is the federal tax you pay for bringing your car in. Uncle Same wants his piece of the pie. For cars, it's usually around 3% of the purchase price you paid in Japan. For mini-trucks, cargo vans, and anything that might be understood to have a commercial use it's 25%. My kei van, despite having rear seats, counted as a truck because in the cargo area. This caught me off-guard but thankfully with the purchase price being so low it didn't break the bank.
• US Customs Clearance- This is the fee to a freight forwarder to get your vehicle cleared by customs. They'll fill out the customs forms and file everything with what's called a Formal Entry. This is typically called Form 7501 and it's a single page.
• Single entry bond - You must have a customs bond to file a Formal Entry. This is like term life insurance. You pay for a one-time use bond based on the value of your vehicle.
• Express Courier - Payment for the freight forwarder to overnight documents to customs and/or the freight line.
• Documentation - Payment for the freight forwarder
• DOT - You will fill out and send to the freight forwarder a form that says your vehicle is old and exempt from DOT regulations. They must have this for customs clearance and they'll charge you to file it with the USDOT. The form is called an HS-799 Short form. It's one page
• EPA - You will fill out and send to the freight forwarder a form saying that your vehicle is old and exempt from EPA regulations. They must have this for customs clearance and they'll charge you to file it with the EPA. The form is called a 3520-1 and it's two pages. You'll likely just put in your info, the vehicle info and then check the box for Code E.
• Transit - If you aren't going to port to pick up the car, you need to get a transporter to deliver it. Do not plan on driving the car back; you'll want to trailer it at the very least. Auto transport rates vary tremendously. You'll pay based on the size/weight of your car and the mileage they're transporting it, and trucking rates fluxuate all the time based on driver supply and demand.

GOING THE CHEAP ROUTE

Is your vehicle under $2,500? Do you want to do more work yourself? Do you live a life of leisure and can casually spend your days waiting in a Customs and Border Patrol office? Then you don't need a freight forwarder. You also don't need to pay additional fees for a single-entry bond, or any documentation filings. You'll instead do what's called an Informal Entry.

Informal Entry means you show up in person with your Form 7051, HS-799 Short and 3520-1 all filled out at the customs office along with a cargo release showing you paid the freight company for the unloading. You pay your duty there and any other misc. fees, take your car and go home. Bring a check book.

AUCTION HUNTING

Japanese auctions are fast paced. A car will show up online and sell within the same day, often in a matter of hours. Once you're shopping, check the auctions nightly. Bids are placed ahead of the car going on the block and the winner is the person with the highest submitted bid. My process is:

1. Find several cars you're interested in and email their auction links to your Japanese contact. They'll translate the auction sheets which list any flaws, damages, aftermarket parts, etc so you get an idea of the car's condition. These sheets are extremely detailed. The Japanese contact may dissuade you from bidding on some cars based on concerns off the auction sheet. This is expected.

2. If one or more vehicle sounds good, you can request a pre-auction inspection. A 3rd party inspector will check out the car, starting it up and making notes if it's dirty or hard to start or smells funky, and then you'll get a report back to help you decide if you want to bid. In the case of my exporter, the inspection is "free"; paid out of the profit they make when you win a car. 3rd Party Inspection etiquette - Don't request one unless you're serious about buying the car in question. If the 3rd Party report comes back good, you'll be expected to bid a fair max price that's above the average price for that vehicle. Otherwise you'll nickel-and-dime all the profit they're expecting to make away on inspections for vehicles you have a 50/50 or less chance to win.

3. Keep looking, or bid your max price. The winning bid is usually $50 more than the second highest bid. So if you bid $1,000 and somebody else bids $500, you win and pay $550.

When you win, you'll get notification that you're the proud owner of the vehicle and an invoice for everything in Cost Group 1. Go to your bank and send a wire transfer. It's time to pay up!

THE WAITING GAME

Once you've paid, you'll play the waiting game. You'll get notice that your freight is pre-booked with an expected sail date somewhere in the next few weeks. Within a week or so you'll also get a big ZIP file full of photos of your vehicle showing every nick, ding, dent, rust spot, paint chip and upholstery tear they can find. If something stands out as sketchy or if you need a repair part, now is the time to talk to your exporter about sourcing those. Sometimes they can ship them in the vehicle. Also, you have the option to keep the car in Japan and try to sell it in the auctions there instead of bringing it over. Don't do this unless absolutely necessary.

Now is the time to decide if you are using a freight forwarder. If you are, you need to notify the Japanese team so they can put the forwarder's info on your Bill of Lading, the official document that accompanies your cargo. This lists where the cargo was loaded, where it's headed, and who is in charge of it at various points. If your freight forwarder is on the BOL, you don't have to talk to the freight company later on and it speeds up the customs process.

Your car will load onto a car transport ship. It's like a parking garage on the ocean. They'll drain most of the gas. It'll take several weeks to cross the ocean. Plan on a month to 6-weeks just to be safe because these ships stop in all sorts of ports. Mine went to several Japanese ports before sailing south, coming through the Panama Canal, and then hitting up several Central American countries and islands before landing in Texas.