* * * * * * * * * T E R R I E 'S T A K E * * * * * * *<br>A weekly roundup of news & information from Terrie Lloyd.<br>(<a href="http://www.terrie.com">http://www.terrie.com</a>)<br><br>General Edition Sunday, May 27, 2012, Issue No. 663<br>
<br>+++ INDEX<br><br>- What's New -- Where Consumption Tax Can't Go<br>- News -- Japan Atomic Power being paid to do nothing<br>- Upcoming Events<br>- Corrections/Feedback<br>- Travel Destinations Picks -- Nikko and Miyazaki<br>
- News Credits<br><br>SUBSCRIBE to, UNSUBSCRIBE from Terrie's Take at:<br><a href="http://mailman.japaninc.com/mailman/listinfo/terrie">http://mailman.japaninc.com/mailman/listinfo/terrie</a><br><br>BACK ISSUES<br><a href="http://www.japaninc.com/terries_take">http://www.japaninc.com/terries_take</a>, or,<br>
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e-mail us at <a href="mailto:info@pbxl.jp">info@pbxl.jp</a> or call us at 03-4550-2557<br><br>------------ PBXL is BUSINESS COMMUNICATIONS --------------<br><br>+++ WHAT'S NEW<br><br>This weekend the Nikkei ran an article about the fact that <br>
Rakuten and other internet companies are looking to start <br>selling e-books and online ads to Japanese domestic <br>customers from abroad, so that they can avoid paying <br>consumption tax. At 5% the tax isn't so high that it's <br>
worth bothering about, compared to the cost of <br>administrating such sales and foreign sourcing. However, <br>with a publicly flagged rate of at least 10% and possibly <br>as much as 15% or more in the next 5 years, companies are <br>
starting to realize that consumption tax is both burdensome<br>and also avoidable.<br><br>It's avoidable because along with the many other countries <br>that have similar sales taxes, consumption tax is typically<br>confined to goods and services consumed in the country of <br>
sale. This means that products sold abroad then exported <br>into Japan are not taxed here but instead at the point of <br>sale. Thus, if the sale is made from a location where there<br>is no sales tax, such as Alaska or Oregon in the USA, or <br>
Hong Kong here in Asia, then the Japanese authorities miss <br>out on the tax revenue. <br><br>Currently Japan is unable to do anything about cross-border<br>sales tax irregularities because international free trade <br>policies have for a long time held that exports should be <br>
free of sales taxes, so as to encourage exports. However, <br>already in Europe, online cross-border transactions between<br>EU countries are tax-balanced and now the OECD is <br>apparently looking into similar measures. However, unless <br>
the USA decides to suddenly go for cross-border taxes, <br>something that is very unlikely while it is actively <br>pushing exports, we don't see the situation changing here <br>any time soon.<br><br>[Continued below...]<br>
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<br>---------- YOUR BOTTOM LINE IS OUR TOP PRIORITY------------<br><br>[...Article continues]<br><br>Already Amazon.com, <a href="http://iherb.com">iherb.com</a>, and other foreign exporters <br>are enjoying consumption tax-free exports to Japan, so it <br>
is only natural for Japanese firms to want to do the same. <br>They need to be a bit circumspect about it, though, or they<br>will invite some kind of domestic measures against such <br>structuring. Rakuten is the most advanced of Japanese firms<br>
looking at transacting outside Japan. The company is going <br>to use a Canadian ebook firm they took over in January, <br>Kobo.com, to start selling Japanese titles to customers in <br>Japan.<br><br>The whole zero-consumption-tax-by-importing-from-abroad <br>
equation is starting to look more and more attractive for <br>consumers, and not just in the ebooks and online ads.<br>Even food is now starting to become viable as a personal <br>import, being cheaper and easier than going down the road <br>
to the local supermarket to buy.<br><br>To take a case in point, if you were to buy some Bob's <br>Quick Cooking Rolled Oats, admittedly a western diet <br>preference, you would be paying US$2.19 (JPY175) for 453gm.<br>
A similar product here put out by Nisshoku and coming in a <br>300gm packet is about JPY350. Now add up enough other <br>grocery items in your online grocery order to bring the <br>weight up to 13kg, and you can get the whole box into Japan<br>
by air (two days, Sagawa kyubin) for just US$10.71! That <br>effectively means the freight and home delivery of the <br>Bob's oats is JPY66+JPY175=JPY241 for 30% more volume. <br><br>Now add on that rumored 10% consumption tax for the Nisshoku<br>
product, and your domestic shopping total comes to JPY385. <br>The imported Bob's product is starting to look pretty good,<br>both in basic price, delivery, and in having no consumption<br>tax either. Not just rolled oats, almost any western <br>
grocery item, cleaner, vitamin and supplement, music, <br>books, etc., is equally cheaper and carries no consumption <br>tax -- something that will be even more noticeable in two <br>year's time when taxes go up. And since the Japanese are <br>
moving en masse to a more western diet, it's a trend that <br>is likely to increase.<br><br>Therefore, it is not inconceivable that if the yen <br>continues to stay high, and in 2014 the consumption tax <br>does rise to 10%, that some enterprising grocery <br>
wholesaler is going to set up a warehouse and off-shore <br>shopping facility even closer to Japan than <a href="http://iherb.com">iherb.com</a> in <br>California, and make it easier/cheaper for Japanese to do <br>their shopping online. Greenies like to talk about "food <br>
miles" -- well the Japanese could be the first nation in <br>the world to turn the concept upside down by doing the bulk<br>of their non-perishables grocery shopping abroad.<br><br>Where would such a warehouse be set up? As we indicated, <br>
Hong Kong would be a likely spot, since it's always had a <br>favorable tax system. But air freight costs to Japan from <br>Hong Kong are not that competitive, especially for small <br>shipments. Likely alternatives would be Pusan, South Korea,<br>
and Taipei, Taiwan. South Korea has a 10% consumption tax, <br>so the entrepreneur would need to persuade the Korean <br>government to let the company hold their inventory tax <br>free, for export purposes, in one of the country's 9 free <br>
trade zones. Probably not so difficult. Otherwise, Taiwan <br>has a 5% sales tax rate, and so would already be <br>cost-competitive, even without export zone assistance. <br><br><br><br>...The information janitors/<br><br>
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-----------------------------------------------------------<br><br>+++ NEWS<br><br>- Japan Atomic Power being paid to do nothing<br>- Russian consul-general for Niigata dies in fall<br>- Palm oil imports soar, replacing soy oil<br>
- Interesting stats on Japanese public schools abroad<br>- HIS makes big turn-around on Huis Ten Bosch<br><br><br><br>-> Japan Atomic Power being paid to do nothing<br><br>The bureaucrat's amakudari system is wasteful, but in the <br>
case of Japan Atomic Power (JAP), it's also shameful. The <br>company, which owns two nuclear power plants that are <br>currently producing no electricity, managed to declare an <br>FY2011 profit of JPY8.9bn thanks to its guaranteed pricing <br>
arrangement with its utilities customers (who are also its <br>shareholders). The company delivered only 4.6% of the power <br>it is normally supposed to deliver and the losses caused by<br>the outages were passed directly to TEPCO and the other <br>
utilities that buy from it. ***Ed: Even more shameful is <br>the fact that the TEPCO Chairman who is resigning in June <br>to take responsibility for Fukushima, is going to parachute<br>into a paid directorship with JAP. Sickening.** (Source: TT<br>
commentary from <a href="http://asahi.com">asahi.com</a>, May 26, 2012)<br><br><a href="http://bit.ly/LueHkS">http://bit.ly/LueHkS</a> <br><br>-> Russian consul-general for Niigata dies in fall<br><br>Vladimir Pushkov, the consul-general for Russia in Niigata,<br>
accidentally fell down a 30m ravine and died at a Niigata <br>campsite on Saturday. Apparently he was celebrating his <br>birthday with friends at a camping trip volley ball match <br>when he fell off a cliff. The vice consul-general for <br>
Niigata was also injured after trying to assist Mr. <br>Pushkov. (Source: TT commentary from AFP on <a href="http://google.com">google.com</a>, May<br>27, 2012)<br><br><a href="http://bit.ly/KktWA1">http://bit.ly/KktWA1</a> <br>
<br>-> Palm oil imports soar, replacing soy oil<br><br>Japanese oil importer/processor companies are likely to <br>bring in a record 600,000 tons of palm oil in 2012, <br>compared to 557,937 tons in 2011. The jump in the cheaper <br>
palm oil comes as soybeans have risen 14% in price this <br>year, and are likely to keep going up due to increasing <br>demand from China. Most of the palm oil is going into food <br>products such as margarine, where 52,572 tons were produced<br>
from palm oil, versus 10,643 tons from soy oil. ***Ed: And <br>so through sheer economics, Japanese dietary intakes <br>change, even though most consumers have no idea what their <br>products are sourced from. Palm oil has more saturated fat,<br>
which may increase heart disease -- or may not, depending <br>on which study you believe...** (Source: TT commentary from<br><a href="http://bloomberg.com">bloomberg.com</a>, May 23, 2012)<br><br><a href="http://bloom.bg/KUmi0k">http://bloom.bg/KUmi0k</a> <br>
<br>-> Interesting stats on Japanese public schools abroad<br><br>In a Japan Times article about rule changes in Japanese <br>public schools abroad (i.e., government-funded schools for <br>Japanese kids living abroad with their parents on foreign <br>
postings), there are some interesting stats about the size <br>of the school system overall. The article says that there <br>are about 65,000 kids living abroad with parents on <br>postings and that of these 19,000 kids were attending 88 <br>
Japanese public schools abroad. We presume that the other <br>46,000 kids are attending local foreign schools. (Source: <br>TT commentary from <a href="http://japantimes.co.jp">japantimes.co.jp</a>, May 27, 2012)<br><br><a href="http://www.japantimes.co.jp/text/nn20120527a4.html">http://www.japantimes.co.jp/text/nn20120527a4.html</a><br>
<br>-> HIS makes big turn-around on Huis Ten Bosch<br><br>Amidst the news that travel firm HIS is expecting a record <br>increase in earnings this financial year (ending October <br>31st), we notice that one of the strong contributors to the<br>
group profit was the firm's Huis Ten Bosch Dutch theme park<br>in Nagasaki. The fact that the park is making money is <br>really quite amazing and is ample testimony to HIS' <br>Chairman, Hideo Sawada's business acumen. Sawada bought <br>
the park after almost 20 years of red ink and several bust <br>owners had consigned it to the trash heap. The park now <br>accounts for 20% of HIS group's pretax profits and <br>attracted 1.9m visitors last year. (Source: TT commentary <br>
from <a href="http://e.nikkei.com">e.nikkei.com</a>, May 26, 2012)<br><br><a href="http://e.nikkei.com/e/ac/tnks/Nni20120525D2505N01.htm?GID=57">http://e.nikkei.com/e/ac/tnks/Nni20120525D2505N01.htm?GID=57</a><br><br><br>
<br>NOTE: Broken links<br>Many online news sources remove their articles after just a<br>few days of posting them, thus breaking our links -- we<br>apologize for the inconvenience.<br><br>***------------------------****-------------------------***<br>
<br>+++ CANDIDATE ROUND UP/VACANCIES<br><br>=> BiOS, a Division of the LINC Media group, is actively<br>marketing the following positions for customers setting up<br>or expanding in Japan, as well as other employers of<br>
bilinguals.<br><br>** HIGHLIGHTED POSITION<br><br>BiOS is urgently looking for a Network Engineer to join a <br>global data center services provider in Tokyo. In this <br>position, you will be responsible for designing and <br>
architecting network systems for both domestic and <br>international clients within data centers, leading 24/7 <br>system monitoring teams and staff, managing external IT <br>vendors, and providing vendor escort services to clients. <br>
You will also be expected to participate in data center <br>facility expansion plans as a consultant, and work with <br>management in cost-reduction projects.<br><br>Due to the technical nature and demanding work environment,<br>
this position is suitable for someone with more than two <br>years of network design and architect experience, as well <br>as experience within a data center. In addition, since this<br>role requires direct coordination with both regional and <br>
global IT teams, native-level Japanese and daily <br>conversational English will be required.<br><br>Remunerations is JPY5M – JPY8M depending on your experience<br>and skill level.<br><br>** POSITIONS VACANT<br><br>- Server Engr, Data Center services provider, JPY5M – JPY8M<br>
- Staffing Consultant, BiOS, JPY2.5M – JPY3M<br>- Bilingual PC Support Engr, global teleco, JPY3.5M – JPY4M<br>- Data Center Sales, global DC Co., JPY4.5M – JPY5.5M<br>- Senior Support Engineer, BiOS, JPY5M – JPY6M<br><br>
** BiOS Job Mail<br><br>Every 2 weeks BiOS sends out a regular communication to its<br>job seeking candidates, called BiOS Job Mail. Every edition<br>carries a list of BiOS's current and most up-to-date<br>vacancies, with each entry featuring a short job<br>
description and a direct link to the main entry on the BiOS<br>home page. Regardless of whether you are unemployed and<br>searching, thinking about a career change, or just curious<br>to know if there is something out there that might suit you<br>
better, the BiOS Job Mail newsletter is an easy and<br>convenient way for you to stay informed. If you would like<br>to register for the BiOS Job Mail, or to find out more,<br>please email <a href="mailto:jason.kisling@biosjp.com">jason.kisling@biosjp.com</a>.<br>
<br>Interested individuals may e-mail resumes to:<br><a href="mailto:jason.kisling@biosjp.com">jason.kisling@biosjp.com</a><br><br>-----------------------------------------------------------<br><br>--------- BIOS - Bilingual IT Systems and Support ---------<br>
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<br>***------------------------****-------------------------***<br><br>+++ UPCOMING EVENTS/ANNOUNCEMENTS<br><br>---------------- Start a Company in Japan -----------------<br><br>Entrepreneur's Handbook Seminar 2nd of June, 2012<br>
<br>If you have been considering setting up your own company,<br>find out what it takes to make it successful. Terrie Lloyd,<br>founder of over 17 start-up companies in Japan, will be <br>giving an English-language seminar and Q and A on starting <br>
up a company in Japan.<br><br>This is an ideal opportunity to find out what is involved,<br>and to ask specific questions that are not normally <br>answered in business books. All materials are in English <br>and are Japan-focused.<br>
<br>For more details:<br><a href="http://www.japaninc.com/entrepreneur_handbook_seminar">http://www.japaninc.com/entrepreneur_handbook_seminar</a><br><br>-----------------------------------------------------------<br><br>
***------------------------****-------------------------***<br><br>+++ CORRECTIONS/FEEDBACK<br><br>In this section we run comments and corrections submitted<br>by readers. We encourage you to spot our mistakes and<br>amplify our points, by email, to <a href="mailto:editors@terrie.com">editors@terrie.com</a>.<br>
<br>=> No feedback this week.<br><br>***------------------------****-------------------------***<br><br>----------- Experienced Biz Dev/Interpreter --------------<br><br>Ex-investment banker, venture capitalist and current biz<br>
dev expert seeks part-time work as interpreter and market<br>development consultant. Knowledgeable in finance, web,<br>technology, and media sectors, with additional experience<br>in other areas. Good at analyzing problems, creating<br>
strategies to get into target firms, and just getting the<br>job done. Native Japanese, high-level English, competent<br>presentation skills.<br><br>Based in Tokyo, available for immediate assignment, OK <br>with short-term projects. Contacting me for a preliminary<br>
meeting and quotation for services is free.<br><br>For more information, contact: <a href="mailto:bigred461696@gmail.com">bigred461696@gmail.com</a><br>-----------------------------------------------------------<br><br>***------------------------****-------------------------***<br>
<br>+++ TRAVEL DESTINATIONS PICKS<br><br>=> Futara-san Shrines of Nikko<br><br>Nikko Futara-san Shrine proper is huge, and includes the <br>peaks of the Nikko mountain range (Mt. Nantai, Mt. Nyoho, <br>Mt. Taro, and five other mountains), Kegon-no-taki Falls, <br>
Iroha-zaka slope, three shrines, and many other less <br>famous points. Ancient people here believed that this whole<br>area was a place where God was sitting. In total, it covers<br>3,400 hectares—equivalent to around 34,000 square meters.<br>
<br>The original shrine itself, however, was established by <br>Priest Shodo 766 near where Hon-sha is now standing. When <br>Shodo and his disciples finally succeeded in reaching the <br>summit of Mt. Nantai in 782, he erected Oku-miya at the top<br>
of the mountain. Later, Chugu-shi was built in 784 for the <br>people who couldn’t go and worship Oku-miya.<br><br><a href="http://japantourist.jp/view/the-futara-san-shrines-of-nikko">http://japantourist.jp/view/the-futara-san-shrines-of-nikko</a><br>
<br>=> Nishimera Village, Miyazaki<br><br>Nishimera village is one of the more remote places to visit<br>in Miyazaki prefecture, close to Kumamoto, and one of the <br>most rewarding to nature lovers: with stunning mountain <br>
scenery, picturesque bridges over crystal-clear rivers, <br>camping facilities, hiking and fishing spots, and a <br>refreshing indoor and outdoor onsen.<br><br>We stopped off for a soak in the hot spring, where for 400 <br>
yen, one can let the soothing waters rid the body and mind <br>of stored up stress. From the outside tub you can sit and <br>watch the pine and chestnut trees swaying to and fro on the<br>mountainside opposite in the gentle breeze, an activity <br>
which was sleep inducing. Later, we were pleasantly <br>surprised to find the onsen has set aside tatami rooms for <br>resting, and on inspection we saw many people taking naps <br>on the warm spring afternoon.<br><br><a href="http://japantourist.jp/view/nishimera-village">http://japantourist.jp/view/nishimera-village</a><br>
<br>***------------------------****-------------------------***<br><br>***********************************************************<br>END<br><br>SUBSCRIBERS: 8,080 members as of May 27, 2012<br>(We purge our list regularly.)<br>
<br>+++ ABOUT US<br><br>STAFF<br>Written by: Terrie Lloyd (<a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br><br>HELP: E-mail <a href="mailto:Terrie-request@mailman.japaninc.com">Terrie-request@mailman.japaninc.com</a><br>
with the word 'help' in the subject or body (don't include<br>the quotes), and you will get back a message with<br>instructions.<br><br>FEEDBACK<br>Send letters (Feedback, Inquiries & Information) to the<br>
editor to <a href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>.<br><br>ADVERTISING INFORMATION<br>For more information on advertising in this newsletter,<br>Contact <a href="mailto:ads@japaninc.com">ads@japaninc.com</a>.<br>
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<br>J@pan Inc is Japan's only independently published English-<br>language business website. Authoritatively chronicling<br>online the business trends in Japan, each posting brings<br>you in-depth analysis of business, people and technology in<br>
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