Payment Methods — Exporting to Japan

Essential guide for Indian exporters

🇯🇵 Japan

Capital

Tokyo

Currency

Yen

Trade Agreement

India-Japan CEPA

Export Rank

#14

Continent

Asia

Payment Methods for Exports to Japan

Local currency: Yen. Most international trade is conducted in USD or EUR.

Letter of Credit (L/C)

Most Secure

Bank-backed guarantee of payment upon presentation of compliant documents. Recommended for high-value first-time transactions.

Documentary Collection (D/P, D/A)

Moderate

Documents are released through banks either against payment (D/P) or acceptance of a bill of exchange (D/A). Lower bank fees than L/C.

Advance Payment / Wire Transfer

Secure for Exporter

Buyer pays before shipment via SWIFT transfer. Ideal for small orders or established relationships.

Open Account

Buyer-Friendly

Goods shipped and paid for later (typically 30-90 days). Only recommended with trusted, established buyers.

For first-time exports to Japan, a confirmed Letter of Credit is recommended. As the trading relationship strengthens, you may transition to Documentary Collection or Open Account terms.

More Export Guides for Japan

Documents Required

Customs Duties & Tariffs

Shipping & Logistics

Quality Standards & Certifications

Business Culture & Etiquette

Trade Agreements with India

Market Entry Strategy