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A.A.N. Japan Co., Ltd., founded in 2013, operates in the automotive recycling and export industry. We provide a complete production cycle — from vehicle procurement in Japan to the delivery of finished shipments to customers worldwide. Main Areas of Business: - Wholesale supply of auto parts (Japan) — distribution of automotive parts to local buyers. - Export of auto parts (wholesale) — container shipments of components to overseas clients. - Export of engines and transmissions — powertrain units for international markets. - Vehicle procurement at Japanese auctions — sourcing and purchasing vehicles on behalf of customers. - Vehicle dismantling and container export — dismantling vehicles, packing, and consolidating components for customer shipments. - Vehicle export — supply of operational vehicles for resale and use. - Scrap metal procurement — collection, processing, and shipment of scrap materials.

A.A.N. Japan is a Japanese company specializing in automotive recycling and export since 2013. Its history reflects the development of the entire industry — from the establishment of Japan’s automotive recycling system to international recognition. 2000–2005 — Industry Formation Japan enacted the Automobile Recycling Law, establishing mandatory standards for the disposal of airbags, refrigerants, and batteries. 2006–2010 — Emergence of Standards and Licensed Facilities The company founders arrived in Japan, gained experience in the used wheel trading business, and discovered the automotive dismantling sector. 2013 — Foundation of A.A.N. Japan A.A.N. Japan was established in Yachimata City, Chiba Prefecture. The company achieved its first milestones by obtaining a vehicle dismantling license and opening its first operational yard. 2015 — Relocation to Yotsukaido, Chiba The company relocated to Yotsukaido, one of Japan’s major automotive recycling hubs, strategically located near Tokyo, Yokohama, and Narita Airport. 2015–2020 — Period of Rapid Growth Auto parts exports increased significantly. The company expanded from 2 employees to more than 50 staff members, invested in equipment and production facilities, and installed a Morita hydraulic press for scrap processing. 2020–2023 — Pandemic and Global Instability The industry faced significant challenges during the pandemic and global economic instability. Despite this, A.A.N. Japan received multiple awards and recognitions from national associations and government organizations. Future Vision The company’s future strategy includes digital transformation (ERP, Big Data, AI, Smart Yard), environmental initiatives (electric vehicle and battery recycling, green logistics), and globalization through partnerships and international platforms.

A.A.N. Japan Co., Ltd. operates in full compliance with Japanese legislation and holds all necessary permits for vehicle dismantling, recycling, and trading of used vehicles and automotive parts in accordance with the Automobile Recycling Law (自動車リサイクル法) and other applicable regulations. Vehicle Collection, Transfer Reporting, Freon Recovery, and Dismantling License (引取業・移動報告・フロン類回収業・解体業 / Hikitori Gyō・Idō Hōkoku・Furontō Kaishū Gyō・Kaitai Gyō Kyoka) This license authorizes the company to dismantle end-of-life vehicles in compliance with Japanese environmental and technical standards. Yard 1 — 2047945002-001 Yard 2 — 2047945003-001 Yard 3 — 2047945005-001 Yard 4 — 2047945006-001 Shredder Operator Registration (破砕業者名簿 / Hasai Gyōsha Meibo) Allows the company to process vehicle bodies and residual scrap materials while ensuring proper disposal of automotive shredder residue (ASR). Registration Number: 2047945004-001 Used Goods Dealer License (古物商許可 / Kobutsushō Kyoka) Issued by the Chiba Prefectural Public Safety Commission, this license authorizes the purchase and resale of vehicles, engines, transmissions, and automotive parts. License Number: 441100002616 Qualified Invoice Issuer Registration (適格請求書発行事業者登録番号 / Tekkaku Seikyūsho Hakkō Jigyōsha Tōroku Bangō) Enables the company to issue invoices under the Japanese Qualified Invoice System (Invoice制度). Registration Number: T3040001081149 Corporate Number (法人番号 / Hōjin Bangō) Official corporate identification number assigned by the Government of Japan for legal and tax purposes. Corporate Number: 3040001081149

A.A.N. Japan Co., Ltd. operates modern equipment that meets the highest standards of safety, productivity, and environmental compliance. The company’s technical fleet combines Japanese engineering precision and operational efficiency, ensuring stable performance in dismantling, loading, and export preparation operations. A total of 20 units of core equipment is in operation and undergo regular inspections and maintenance, guaranteeing reliability and uninterrupted workflow across all facilities. Equipment Categories Excavators — 6 Units - SUMITOMO SH215X-2 — 1 - KOBELCO — 2 - HITACHI with grapple attachment — 2 - HITACHI with magnet attachment — 1 Press and Shredder — 1 Unit - Shredder Press Machine Forklifts — 12 Units - TOYOTA — 8 - UNICARRIERS — 1 - LOGISNEXT — 3 - LOGISNEXT 5-ton — 1 CATERPILLAR EQUIPMENT — 1 Unit Total Fleet Total: 20 units of equipment The diversified and well-maintained equipment fleet ensures efficient dismantling, loading, and recycling operations while maintaining safety, sustainability, and high operational quality across all yards.

A.A.N. Japan Co., Ltd. has demonstrated stable export performance over recent years. From March 2021 to August 2024, the company completed +4,480 shipments with a total export value exceeding USD 50.8 million. These results reflect operational reliability and strong international partnerships. Main Export Destinations - North America — United States - South America — Chile - Middle East — United Arab Emirates / Jordan - Central Asia — Kazakhstan / Kyrgyzstan - Eurasia and Caucasus — Georgia / Azerbaijan - Africa — Kenya / Zimbabwe - Asia-Pacific Region — Mongolia / Malaysia - Europe — United Kingdom / Poland Export Categories (HS Codes) - HS 840734 — Engines — USD 27 million — 13.9% - HS 870323 — Vehicles and automotive parts — USD 11.9 million — 7.5% - HS 870829 — Other automotive parts — USD 224 thousand — 5% - HS 870870 — Wheels and accessories — USD 361 thousand — 2.6% - HS 870899 — Other components — USD 3 million — 2%

Address A.A.N. Japan Co., Ltd. Head Office: 〒284-0008 千葉県四街道市鹿放ケ丘349-3 (349-3 Rokpogaoka, Yotsukaidō-shi, Chiba, Japan) Business Hours Monday–Saturday: 08:00–18:00 (JST) Sunday: Closed Visits are available by prior appointment only. Please contact us in advance via WhatsApp, phone, or email. How to Reach Us From Narita Airport Take the JR Sobu Line or Keisei Line to Yotsukaidō Station (approximately 40–50 minutes), then around 10 minutes by taxi. From Tokyo Station Take the JR Sobu Rapid Line to Yotsukaidō Station (approximately 55–65 minutes), then around 10 minutes by taxi. By Car Via the Higashi-Kanto Expressway, exit at Yotsukaidō IC, then approximately 10 minutes to the office. Operational Facilities Dismantling Yard 1 — Engines and Transmissions 〒284-0008 千葉県四街道市鹿放ケ丘263-2 Dismantling Yard 2 — Body Parts 〒284-0008 千葉県四街道市鹿放ケ丘349-2 Dismantling and Loading Yard (Yard 3) Export vehicle dismantling and container packing operations. 〒284-0008 千葉県四街道市鹿放ケ丘396-9 Vehicle Storage and Parking Facilities Upper Yard 1 〒284-0008 千葉県四街道市鹿放ケ丘263-2 Yard 4 〒284-0008 千葉県四街道市鹿放ケ丘71-11 Yard 6 〒284-0008 千葉県四街道市鹿放ケ丘365-9 Yard 7 〒284-0008 千葉県四街道市鹿放ケ丘346-2

A.A.N. Japan Co., Ltd. provides full support for international clients visiting Japan for inspections, purchasing activities, and container operations. We ensure a transparent and convenient visa application process. The Company Provides: - Invitation letters and guarantee letters - Individual stay schedules based on the client’s business plan - Consultations regarding document preparation (passport copy, application forms, etc.) - Support for both regular and new clients through a deposit guarantee system For new clients or customers with smaller purchasing volumes, a deposit of JPY 1,500,000 is required. The funds are credited to the client’s account and may be used for future purchases. In the event of a visa refusal or inability to travel, the deposit is refunded in full.

During registration, users must complete three steps: Step 1 — Account Purpose - Purchase or sales activities. Step 2 — Country of Residence - Japan or another country. Step 3 — User Type - Company or individual. After completing the registration form, users must confirm their agreement and click “Create Account”. Registration Verification Submitting an application does not guarantee automatic approval. Every application is reviewed by A.A.N. Japan in accordance with the company’s internal requirements and policies. An Application May Be Rejected If: - The provided information is incomplete or contains errors - The user has previously violated A.A.N. Japan policies - The applicant does not meet compliance or KYC requirements If an application is rejected, the client will be notified and may submit a new application after resolving the identified issues.

The user’s login ID is their email address. The password is created by the client during registration. Additional sub-accounts for employees may be added if necessary. All actions performed by employees under your account are considered actions performed by you. If you suspect that your account credentials have been compromised, you must immediately change your password and notify A.A.N. Japan customer support.

If no activity is recorded for four years (date format: YYYY-MM-DD, JST), the account may be marked as inactive. All funds associated with the account will remain securely stored and may be restored upon request in accordance with applicable laws and regulations. Account deletion is available upon request via: csd@aanjapan.co.jp Certain information may be retained to comply with legal and tax obligations; however, the user’s access to the system will be completely removed.

Before purchasing activities can begin, an initial deposit is required. Once the deposit is confirmed, your account will be activated and you will gain access to all A.A.N. Japan services. The deposit functions as: - An advance balance for auto parts purchases - A financial guarantee for vehicle purchases The full deposit amount is displayed in your dashboard and is refundable under the terms of the agreement, ensuring protection for both parties. Alternatively, it may be applied toward the final transaction amount. The deposit is refundable provided there are no outstanding obligations to the company. Refunds are processed within 30 business days after receiving a written request (JST time zone, excluding Japanese national holidays). All bank fees and related transfer costs associated with the refund are borne by the client.

The required deposit amount depends on the account type and business activity. Vehicle Purchases To begin purchasing vehicles, the following deposit amounts are required based on the bidding limit: - Up to JPY 1,000,000 — Deposit: JPY 100,000 - Above JPY 1,000,000 and up to JPY 7,000,000 — Deposit: JPY 300,000 - Above JPY 7,000,000 — Deposit: 50% of the requested bidding limit A.A.N. Japan may require a higher deposit for high-value vehicles, heavy machinery, or non-standard auction lots. Export Auto Parts Purchases To activate an account for export auto parts purchases, a fixed deposit of JPY 1,500,000 is required. This deposit serves as an advance balance and is automatically deducted from subsequent auto parts and container orders.

Before starting metal supply operations, suppliers must provide the following information: - T-Invoice Number - Bank account details - Payment schedule and settlement frequency

Deposits can be made via bank transfer or cash payment. Credit cards are not accepted. Deposit Payment Process 1. Generate an invoice through the AANDO personal dashboard. 2. Transfer funds to the official A.A.N. Japan account at MUFG Bank. 3. Upload the payment receipt to your personal account dashboard.

Bank Information Bank: 三菱UFJ銀行 (MUFG Bank, Ltd.) Branch: 千葉支店 (Chiba Branch) Account Type: 普通預金 (Futsū Yokin / Savings Account) Account Number: 1179724 Account Holder: A.A.N. JAPAN 株式会社 For domestic payments within Japan, clients may also pay in cash. An official receipt will always be issued for cash payments.

Beneficiary Bank Information Beneficiary Bank: MUFG Bank, Ltd. SWIFT/BIC: BOTKJPJT (BOTKJPJTXXX) Branch: CHIBA BRANCH Bank Address: 2-3-1 Fujimi, Chuo-ku, Chiba-shi, Chiba 260-8636, Japan Beneficiary Account Information Account Number: 270-1179724 Beneficiary Name and Address A.A.N. JAPAN Co., Ltd. 263-2 Rokpogaoka, Yotsukaidō-shi, Chiba 284-0008, Japan (〒284-0008 千葉県四街道市鹿放ケ丘263-2) Phone: +81-43-312-2496

All payments are accounted for in Japanese Yen (JPY). If payment is made in USD or another foreign currency, the funds will be converted into JPY based on the Telegraphic Transfer Buying (TTB) exchange rate of MUFG Bank on the date the funds are credited. Business days are calculated according to Japan Standard Time (JST). Funds are credited based on the value date. All exchange rate differences and bank charges are borne by the client. The applied exchange rate is final and cannot be revised or disputed.

Domestic Transfers - Up to 1 business day (T+1, JST). International Transfers - From 2 to 5 business days (T+2–5, JST), depending on the sending bank and intermediary banks. Dashboard balance updates are reflected after confirmation of incoming funds.

A.A.N. Japan Co., Ltd. supplies automotive parts to the domestic Japanese market through a structured and transparent procurement process. Unlike most dismantling companies, all vehicles are purchased exclusively through certified Japanese auto auctions. Each vehicle comes with verified service history, confirmed mileage, and documented condition. On average, the company purchases approximately 60 vehicles per day from various auctions and dismantles 40–45 units daily, ensuring a stable supply of high-quality auto parts with traceable origin.

Clients can reserve vehicles or automotive parts directly through their personal dashboard, even before the vehicle arrives at an A.A.N. Japan facility. Once delivered to the dismantling yard, the vehicle and its components remain available for reservation. Clients may also conduct on-site inspections and place reservations immediately after inspection. The location of each vehicle is displayed in the AANDO dashboard together with its specifications. Pricing and availability are visible after user login.

For convenience and transparency, A.A.N. Japan offers automotive parts in predefined product sets: Full Set - All body panels, engine, and transmission included. Nose-Cut Set - Body panels only, excluding engine and transmission. Engine Set - Engine and transmission package. Suspension components may be added to any set upon request.

Engine Set (Default Configuration) Includes: - Complete engine assembly (engine block, cylinder head, and internal components) - Alternator - Starter - Air conditioning compressor - Turbocharger - ECU - Engine wiring harness - Transmission In some cases, the front suspension may also be included. Nose-Cut Set (Default Configuration) Includes: - Front bumper - Front fenders - Hood - Headlights - Radiator support - Core support - Radiators - All doors - Rear bumper - Tail lights - Trunk lid Excluded: - Engine - Transmission Full Set (Default Configuration) Includes: - All exterior body components - Engine - Transmission The exact product composition is specified in the product listing. In the event of discrepancies, product photos and item labeling shall prevail.

Certain components may be sold separately, particularly rare or modified parts, including: - Spoilers and aerodynamic body kits - Audio systems, head units, and amplifiers - Cameras and sensors - Sports seats and steering wheels - Exhaust systems and mufflers - Performance brake calipers - Adjustable suspension systems (The list is not exhaustive; availability depends on the vehicle model and current inventory.)

The following product categories are sold exclusively in wholesale quantities: - Jacks - ABS units - Brake master cylinders - Fuel pumps - Engine and transmission mounts

The following categories are sold only to clients approved by the company: - Scrap metal - Batteries - Wiring harnesses - Catalytic converters - Wheels and tires - Airbags (disposed of in accordance with Japanese recycling regulations)

Upon customer request, A.A.N. Japan can package individual parts or complete sets. Packaging Policy - Labor cost: Packaging is provided free of charge - Packaging materials: Paid by the client Standard Packaging - Stretch film wrapping (default method) Additional Protection - Bubble wrap for fragile or high-value components

Upon customer request, the company offers used wheels through two sales channels: 1. Custom wheel auctions — held every two weeks at the dismantling facility 2. Wholesale wheel lots — bulk sales of standard wheels Sales Channels Custom Wheels (Auction) Premium and aftermarket wheel sets are sold through biweekly auctions. Participation is limited to registered clients only. Standard Wheels (Wholesale) Sold in bulk quantities without detailed sorting. Classification - Alloy wheels - Steel wheels Sorting Policy Wheel lots are not sorted by: - Size - Production year - Tire tread depth - Brand - Tread pattern Lots are categorized only by material type: - Alloy - Steel Minimum Order Quantity The minimum order for standard wholesale wheel shipments is 700 wheels per shipment.

Auction Format The auction is held every two weeks at the dismantling facility, directly next to the displayed wheels, allowing participants to inspect the products before bidding begins. Auction Process 1. A.A.N. Japan announces the starting price. 2. Registered participants place bids by increasing the offered amount. 3. The participant with the highest final bid wins the lot. The auction schedule is available through the personal dashboard. Advantages Transparency - Open bidding ensures market-based pricing. Inspection Opportunity - Participants can personally inspect the condition of the wheels before placing bids. Efficiency - Fast bidding process with immediate lot allocation to the winning participant.

No Domestic Delivery A.A.N. Japan does not provide domestic shipping within Japan. All purchased goods must be collected directly by the client from the designated yard. Reservation and Preparation When placing a reservation, the client may specify the pickup date, allowing the goods to be prepared in advance. Pickup is available during the second half of the business day. Required Documents for Collection Clients must present: - A printed invoice, or - An electronic version of the invoice on a mobile device

Price Protection A reservation secures the agreed price until the scheduled pickup date. Sale Completion The transaction is considered completed after inspection and payment upon collection at the yard. Failure to Collect If pickup is not completed within the agreed timeframe, the reservation may be automatically canceled. Inspection and Finality The client is responsible for inspecting the goods at the time of collection. After release of the goods, returns are not accepted except in cases of: - Damage caused during dismantling - Damage caused during loading or transportation In such cases, compensation or discounts must be agreed upon in advance. Normal wear, scratches, and standard signs of use are not considered defects. (For detailed conditions, refer to the Used Auto Parts Sales Contract (Domestic).)

If the required vehicle or model is not currently available in the dismantling inventory, A.A.N. Japan may purchase a vehicle at auction specifically upon the client’s request. Such orders are processed under a separate procedure and may be subject to different terms and conditions.

Wholesale pricing is determined based on market rates and the condition of the parts. All prices are listed in Japanese Yen (JPY). A 10% consumption tax is added at the time of payment. Payment Methods Payment is made upon pickup via: - Bank transfer (within the agreed payment period), or - Cash payment (with an official receipt issued)

A.A.N. Japan Co., Ltd. exports dismantled vehicles and automotive parts worldwide in accordance with Incoterms 2020. The company operates under two business models: Auction Agent A.A.N. Japan purchases vehicles at Japanese auto auctions on behalf of the client, dismantles them, and prepares the selected parts for export shipment. Stock Clients select products directly from the company’s existing inventory of dismantled vehicles and automotive parts ready for export.

To activate export operations, a deposit of JPY 1,500,000 is required. The deposit functions as an advance balance, and all orders are deducted from this amount. Refunds are available provided there are no outstanding obligations and are made only to the original sender’s bank account. All bank charges and transfer fees are borne by the client.

Auction Agent The client pays for: - Vehicle auction price - Auction fees - A.A.N. Japan service commission - Domestic transportation - Dismantling costs - Export-related expenses Stock Prices are displayed in the personal dashboard or confirmed by the sales manager. Once the order is placed, the pricing is fixed. Currency All transactions are conducted in Japanese Yen (JPY). If payment is received in a foreign currency, it will be converted into JPY based on the MUFG Bank Telegraphic Transfer Buying (TTB) exchange rate on the date funds are credited. Payment Method Payments are made via: - International bank transfer, or - Another mutually agreed payment method Pre-Shipment Payment Requirement Full payment is required before shipment. In certain cases, shipment may be temporarily suspended until the final payment is received. Compliance matters, returns, and contractual obligations are governed by the Used Auto Parts Export Contract.

Reservations secure the agreed price until shipment. If goods are damaged prior to shipment, the client may: - Cancel the order - Request replacement items - Request a discount Backorders are non-cancelable and non-refundable. All claims related to reservations or backorders must be submitted through the “Claim” section in the personal dashboard.

When operating as an auction agent at Japanese auto auctions, A.A.N. Japan accepts requests with detailed vehicle specifications, including: - Manufacturer (Toyota, Nissan, Honda) - Model (Prius, Crown, Skyline) - Body type / chassis code (ZVW30, JZS161) - Production year (for example, 2009–2013) - Facelift version (before or after facelift) - Trim level (for example, Tourer V) After receiving the request, the company analyzes auction market statistics and provides an estimated market price. The final price is determined by the actual auction results and reflected in the invoice.

A.A.N. Japan operates exclusively with wholesale clients. Orders for a single vehicle or a single part are not accepted. Exports are handled only as Full Container Load (FCL) shipments: - 20-foot container — approximately 10 dismantled vehicles - 40-foot High Cube container — approximately 25 vehicles To calculate freight and export costs, the client must specify in advance: - Number of vehicles - Destination country - Destination port

The company performs: - Half-cut dismantling - Nose-cut dismantling - Full dismantling All work is carried out according to the parts list provided by the client. Certain non-removable components may require cutting procedures, which may incur additional charges. Non-Exportable Items The company does not export: - Windshields - Batteries - Airbags - Hybrid batteries For stock orders, the following items are also not sold: - Catalytic converters - Wheels Clients may combine auction purchases and stock inventory orders within the same container shipment. To optimize container loading, certain parts may be repositioned or adjusted during packing.

Upon client request, packaging labor is provided free of charge. Only packaging materials are charged to the client. Standard Packaging - Stretch film wrapping Additional Packaging Options - Bubble wrap - Cardboard + stretch film Approximate Container Capacity 20ft Container - 8–10 vehicles, or - 60–70 engines 40ft High Cube Container - 15–20 vehicles, or - 120–140 engines Actual capacity depends on vehicle models and packaging configuration.

After the client selects a vehicle, engine, or parts, an invoice is issued for payment. Dismantling operations do not begin until the client pays 80% of the total FOB value of the shipment. Certain clients may operate under separate agreements and individually negotiated payment terms approved in advance by both parties.

Available shipping terms: - FOB - CFR - CIF (Incoterms 2020) Under CFR/CIF terms, A.A.N. Japan arranges transportation services (and insurance in the case of CIF shipments). The transfer of risk is determined according to the selected Incoterms rule. If shipping instructions are delayed, the company may dispatch the cargo at its own discretion. All resulting costs and risks shall be borne by the client. Import duties and taxes in the destination country are the responsibility of the buyer.

For each export shipment, the client must provide Consignee and Notify Party information. These details are used for preparing: - Bill of Lading (B/L) - Commercial Invoice - Packing List Required Information - Company name / Full name - Address - Contact person, phone number, and email - Destination port - Import license number / Tax ID (if required) The provided information is stored in the client profile and may be reused for future shipments.

After the cut-off date (the deadline for cargo or document acceptance for a specific vessel voyage), the following documents are prepared: - Bill of Lading (B/L) - Commercial Invoice - Packing List - Related certificates and supporting documents For shipments to the United States, ISF (Importer Security Filing) information must be prepared and submitted by the client or customs broker. Original Bills of Lading are sent via courier after full payment is received. Surrender B/L or Sea Waybill documents are issued electronically.

Additional charges may arise in connection with the following situations: Mechanical Issues - Battery problems - Brake issues - Fluid leaks - Lock malfunctions Operational Expenses - Towing services - Forklift operations - Winch handling Logistics Expenses - Storage fees - Demurrage charges - Port fees - Return-related costs Documentation Expenses - Bill of Lading corrections and amendments Administrative Expenses - Bank charges - Courier fees - Administrative amendment fees

All estimated arrival dates are approximate and may change depending on: - Vessel schedules - Port congestion - National holidays - Shipping line operations

The client is responsible for inspecting the cargo immediately upon arrival. Claims must be submitted through the personal dashboard within the following timeframes: - Damage or shortage claims — within 7 days - Missing item claims — within 10 days For engine-related claims, a video clearly showing the engine serial number is mandatory. After claim verification and approval, compensation is provided in the form of a discount applied to the client’s next order.

All information related to export shipments is displayed in the client Dashboard. Clients may track container locations directly on shipping line websites using: - Bill of Lading number, or - Container number

Changes are permitted: - Before dismantling begins, or - Before the shipping instruction cut-off date An amendment fee may apply for requested changes. Cancellation Policy Order cancellation is permitted only before dismantling operations begin. Auction purchases cannot be canceled after a successful bid has been placed. If cancellation occurs after dismantling has started, dismantling and labor costs will be charged. Deposits for canceled confirmed orders are non-refundable.

After shipment, A.A.N. Japan continues to provide operational support to clients. Support Includes - Duplicate export documents for customs purposes (invoices, packing lists) - Clarifications regarding dismantling and packaging - Assistance with claims resolution (damage, shortages, quality issues) - Technical feedback for improving operational standards The company is not responsible for delays or additional expenses caused by shipping carriers, ports, or customs authorities. No warranty is provided for used automotive parts. Compensation, if approved, is provided only in the form of discounts.

All communication regarding export operations is conducted through the Personal Dashboard. Main Communication Channels Dashboard Chat - Direct communication with the export department for operational inquiries. Claim Section - Submission of official complaints and claims. Telephone +81-43-312-2496 (Available during business hours, JST)

A.A.N. Japan exports vehicles from Japan in accordance with Incoterms 2020. Operations are conducted under two business models: Auction Agent - Purchase of vehicles at Japanese auto auctions on behalf of the client. Stock - Sale of vehicles already owned and stocked by A.A.N. Japan. All transactions are conducted in Japanese Yen (JPY) with transparent pricing, full documentation support, and shipment/order tracking available through the personal dashboard.

To begin working with A.A.N. Japan, a deposit is required according to the following rules: - Up to JPY 1,000,000 — Deposit: JPY 100,000 - Above JPY 1,000,000 and up to JPY 7,000,000 — Deposit: JPY 300,000 - Above JPY 7,000,000 — Deposit: 50% of the requested bidding limit The deposit is retained throughout the business relationship and is applied toward payment for the final vehicle purchase. Refunds are available provided there are no outstanding obligations. All bank charges are borne by the client.

Auction Agent A.A.N. Japan acts on behalf of the client at Japanese auction groups including: USS, JU, TAA, CAA, ARAI, MIRAI, and others. Stock Vehicles may also be purchased directly from A.A.N. Japan’s inventory stock. For all vehicles, the following may be provided: - Auction sheets - Inspection reports upon request - Vehicle condition evaluations and grading information All vehicles are sold strictly on an “as is” basis unless otherwise agreed in advance.

Reports, mileage information, and auction grades are provided by third parties, and A.A.N. Japan does not guarantee their accuracy. Pre-auction inspections may be arranged for an additional fee, subject to auction house regulations and availability. Photographs, automatic translations, and manual translations are provided for reference purposes only. The client is solely responsible for ensuring that the vehicle complies with the import regulations and requirements of the destination country.

Application Submission The client provides: - Manufacturer - Model - Vehicle series - Production years - Trim level - Mileage limit - Budget - Destination port Market Evaluation A.A.N. Japan provides an estimated market price range based on auction statistics and market conditions. Bidding Limit After deposit verification, a bidding limit is established. Auction Participation Bidding takes place in real time. A successful bid constitutes a binding purchase obligation. Invoice and Payment After a successful auction purchase: - An invoice is issued through the Dashboard - Payment must be completed within three business days Domestic Transportation Vehicles are transported from the auction site either: - To an A.A.N. Japan facility, or - Directly to the port Export Preparation The company arranges: - Export documentation - Inspections - Vessel booking Shipment Tracking Shipment status is available through the client Dashboard.

The client selects a vehicle from the inventory list available on the company website. After deposit confirmation, a short-term reservation may be arranged. An invoice is issued, payment is completed, and export preparation and shipment are organized.

Upon request, the following inspections and certifications may be arranged: - JEVIC - QISJ - INTERTEK - JAAI - EAA - BUREAU VERITAS - and others Radiation Inspection Radiation inspection is mandatory for all Ro-Ro shipments. For container shipments, radiation inspection is performed upon client request. If the destination country requires PSI (Pre-Shipment Inspection) or Pre-Export Inspection, the request must be submitted in advance.

Additional charges may apply in the following situations: - The vehicle is located far from the main auction facility - The vehicle has modified suspension height or altered ground clearance - The vehicle is non-operational and requires towing or special loading - Vehicle height exceeds 2 meters - Roof racks or roof bars are installed - Fluid leaks are present - The vehicle is purchased through AUCNET auctions (or similar auction systems where vehicles are not physically located at the auction site) or through a “one price” sales system - Trucks and heavy machinery - Storage exceeding one month The exact cost depends on transportation distance and loading conditions.

After a vehicle is purchased at auction or from stock inventory, the company issues an invoice, which is displayed in the client’s personal dashboard. The payment deadline is 3 days from the invoice issuance date. Separate payment arrangements may be agreed upon individually with certain clients.

All transactions are conducted in Japanese Yen (JPY). If payment is made in another currency, the funds are converted according to the MUFG Bank Telegraphic Transfer Buying (TTB) exchange rate. Payments are made via international bank transfer. Price Structure for Auction Vehicles The total price may include: - Winning bid price (“button price”) - Auction fees - Domestic transportation - Freight charges - Insurance costs (for CFR/CIF shipments) - Inspection fees (if required) - A.A.N. Japan service commission Price Structure for Stock Vehicles The total price may include: - Stock vehicle price - Domestic transportation - Freight charges - Insurance costs (for CFR/CIF shipments) - Inspection fees (if required)

Auction Vehicles Auction vehicle purchases may only be canceled within a limited time period (approximately 30–120 minutes), and only if cancellation is permitted by the auction house. Stock Vehicles Stock vehicle orders may be canceled before export preparation begins. Cancellation fees may apply. All costs related to cancellation, including: - Penalties - Storage fees - Transportation expenses - Administrative charges shall be borne by the client.

FOB The buyer arranges ocean freight, while A.A.N. Japan delivers the vehicle to the vessel. CFR / CIF A.A.N. Japan arranges freight transportation and insurance (for CIF shipments). Shipping Methods - Ro-Ro shipping for operational vehicles - Container shipping for special destinations or cargo requirements Risk transfer is governed according to the selected Incoterms rule.

Minimum Vehicle Requirements Vehicles must meet the following conditions: - Ground clearance of at least 15 cm - Hood must open and remain secured - Vehicle must be operational and movable - Steering and braking systems must function properly - Windows and glass must be intact - Interior must be empty Vehicles Not Accepted The following vehicles are not accepted for Ro-Ro shipment: - Non-operational vehicles - Vehicles with fluid leaks - Defective HV/EV batteries - Broken glass - Cargo or goods stored inside the cabin If the shipping carrier or terminal refuses to accept the vehicle, the client is responsible for all related costs, including: - Vehicle correction or repair - Re-booking charges - Return transportation expenses

Vehicles are delivered to the container loading warehouse. Non-operational or damaged vehicles may require: - Forklift handling - Winch loading - Roller systems Certain ports do not accept containers loaded with vehicles. The client is responsible for verifying the import and port regulations of the destination country.

Container loading is performed according to industry standards using: - Wheel chocks - Straps - Securing fixtures and locking systems After container sealing, responsibility and risk allocation are governed according to the selected Incoterms rule. If the client uses a third-party loading company, all claims must be submitted directly to that contractor. If cargo exceeds permissible loading limits or uses non-standard loading configurations, all related risks and expenses are borne by the client.

After vessel cut-off, the following documents are prepared: - Bill of Lading (B/L) - Commercial Invoice - Packing List - Export Certificate For shipments to the United States, ISF data must be prepared and submitted by the client or customs broker. Original Bills of Lading are dispatched after full payment is received. Surrender B/L and Sea Waybill documents are issued electronically.

Changes are permitted before the port cut-off deadline. After cut-off closure, amendment fees may apply. Estimated Time of Arrival (ETA) dates are approximate and may change depending on shipping schedules and operational conditions.

Discrepancies related to auction sheet information are handled according to auction house regulations. Final decisions are made by the auction company. Claims Are Not Accepted For: - Vehicles older than 20 years - Vehicles with mileage exceeding 150,000 km - Heavily modified vehicles - Severely damaged vehicles Warehouse Damage Damage identified at the warehouse must be documented before shipment and may be resolved through: - Discount compensation - Repair arrangements Transit Damage Damage occurring during transportation is handled by: - The shipping carrier, or - The insurance provider (for CIF shipments) Arrival Inspection Requirements Ro-Ro Shipments Damage or discrepancies must be recorded in the receiving inspection report upon delivery. Container Shipments Clients must record: - Video of container unpacking - Seal inspection verification Claim Submission Claims must be submitted through the personal dashboard together with: - Photos - Supporting documents - Inspection evidence Compensation is provided in the form of: - Discounts, or - Account credit adjustments

A.A.N. Japan continues to support clients after shipment by assisting with documentation, claims handling, and operational feedback. Support Includes - Preparation of duplicate invoices and packing lists - Clarifications regarding loading procedures - Consultation and assistance with claims processing - Operational feedback and process improvement support The company is not responsible for delays or additional costs caused by third-party organizations, including shipping carriers, ports, customs authorities, or logistics providers. No warranty is provided for used vehicles. Compensation, if approved, is provided only in the form of discounts.

All export-related communication is centralized through the Personal Dashboard. Main Communication Methods Dashboard Chat - Direct communication with the export department for operational matters. Claims Section - Submission of official complaints and claims. Telephone +81-43-312-2496 (Available during business hours, JST)

Payments are made to the supplier’s registered bank account. The company operates exclusively through bank transfers and does not make cash payments. Payment frequency follows the schedule selected by the supplier: - Once per month, or - Twice per month A detailed report for each delivery is available in the supplier’s personal dashboard.

A.A.N. Japan accepts scrap metal and metallic remains from dismantled vehicles throughout Japan. This service is intended for domestic companies engaged in vehicle dismantling operations that require a legal and reliable recycling partner for processing vehicle bodies and scrap metal.

Scrap metal includes residual materials remaining after vehicle dismantling, including: - Vehicle bodies and frames - Iron and steel components - Other metallic elements remaining after parts removal Before delivery, all materials must be properly prepared: - All fluids must be fully drained (oil, coolant, fuel, brake fluid) - All airbags and pyrotechnic devices must be deactivated - All accompanying documentation must be prepared and must correspond to the vehicle identification information

A.A.N. Japan does not accept: - Scrap metal from hearses - Scrap contaminated with household waste or foreign debris - Burned vehicles or vehicles that have sustained severe accident damage

Only companies officially engaged in vehicle dismantling operations and operating in compliance with Japanese law may supply scrap metal. To begin supplying scrap metal, the following steps must be completed through the personal dashboard: - Indicate the intention to supply scrap metal - Review and accept the terms of the supply agreement - Register valid bank account details for payments - Provide a T-Invoice Number (Qualified Invoice Registration Number) required for tax accounting - Select the payment schedule: - Once per month, or - Twice per month After registration is completed, deliveries may be accepted at the company facility. For each delivery, the supplier confirms that: - The vehicles were legally purchased and dismantled - Deregistration documents are authentic - The stated chassis number or VIN matches the actual vehicle

When transporting scrap metal to an A.A.N. Japan facility, the following rules must be observed: Transportation Requirements - Do not overload the transport vehicle — comply with legal weight limits - Secure the cargo properly to prevent loss or scattering during transportation - Verify the facility operating schedule and entry procedures — arrivals are accepted only during business hours and are processed on a first-come, first-served basis Required Documentation Prepare the following documents: - Dismantling Certificate / Disposal Certificate (Kaitai Shoumeisho — 解体証明書) - Company or driver identification information Arrival Procedure Upon arrival, suppliers must register at the facility office to receive: - Assigned unloading lane - Safety instructions Unloading Procedure - Unloading may only be performed under staff supervision - Vehicle engines must be turned off during unloading - Passengers are not permitted in the unloading area Inspection and Weighing After unloading, the shipment undergoes: - Compliance inspection - Gross weight measurement - Standard deduction of 35% for non-metallic materials - Net weight calculation After completion, the supplier receives a receipt through the personal dashboard indicating: - Gross and net weight - Deduction percentage - Applied pricing rate

Current purchase prices for various scrap categories (iron, steel, mixed metal) are available in the supplier’s personal dashboard. Prices are updated regularly according to market conditions. Weighing results and a copy of the weighbridge ticket are attached to the supplier’s settlement report in the dashboard. The final settlement amount is calculated according to the following formula: Net Weight × Current Rate at the Time of Delivery − Waste Deduction

In the 1950s Japan did not yet have a fully developed used vehicle market — vehicles were generally operated until disposal. Trade-in systems appeared in the late 1950s, when dealerships began accepting used vehicles as partial payment for new cars while intermediaries resold them independently. In 1967 Toyota USEC organized Japan’s first used vehicle auction, replacing informal reseller systems with transparent dealer-to-dealer trading. During the 1970s the JU association established unified industry regulations and auction standards. In the 1980s corporations such as USS and others developed professional auction facilities, transforming auctions into an independent business sector. By the 1990s remote auction systems such as AUCNET enabled nationwide bidding without physical travel. Today Japan operates more than 130 automotive auction venues.

Major auction groups such as USS, TAA, ARAI, CAA, HONDA, and others conduct auctions on a weekly basis. IT platforms including ASNET, AUCNET, CIS, and others provide remote access, often through multi-auction portals combining dozens of auction houses within a single interface.

Reserve Price — At most Japanese vehicle auctions, a vehicle is not automatically sold based solely on the final bid amount (except in “no hidden reserve” sections). An important element of the auction process is the reserve price — the minimum amount at which the seller agrees to sell the vehicle. This price is usually hidden from auction participants and known only to the seller and the auction system. Definition of Reserve Price — The reserve price represents the minimum value below which the vehicle owner is unwilling to sell the car. Auction houses intentionally do not display the reserve price because this: - Encourages active bidding - Increases competition - Allows the seller to achieve the highest possible sale price Urikiri Indicator (売り切り) — When bidding reaches the reserve price, the auction system displays the “Urikiri” indicator. Translation: - “Reserve Reached” - “Guaranteed Sale” Before the Urikiri indicator is activated, at least two participants must remain actively bidding. If only one participant remains and the reserve price has not been reached, the lot is classified as unsold. Once the reserve price is reached: - The Urikiri indicator is displayed - The vehicle is guaranteed to be sold - The vehicle is awarded to the participant with the highest final bid

On-Site Participation — Bidding takes place directly at the auction facility. Advantages include: - Minimal auction participation fees - Opportunity for physical vehicle inspection before bidding Remote Participation — Clients may participate online in real time from their office or other remote location. Remote participation fees are generally slightly higher than on-site participation fees. Absentee Bid (不在入札) — The system automatically places bids on your behalf up to the maximum limit specified by you. This participation method is available both: - On-site - Remotely

A.A.N. Japan provides access to various auction formats used by Japanese auction houses. Each format has its own bidding rules, procedures, and methods for determining the winning bidder. Standard Auctions — Standard auctions are the primary auction format used at Japanese vehicle auction facilities. - Bidding takes place in real time with prices increasing incrementally - An A.A.N. Japan staff member places bids on your behalf within your specified bidding limit - The winner is the participant who submits the highest bid when the auction closes - Most vehicles are subject to a hidden reserve price established by the seller - Until the reserve price is reached, bidding does not guarantee sale of the vehicle The final auction price may remain below your maximum bid while the vehicle still remains unsold if: - The seller’s reserve price is higher than the highest active bid - Only one active bidder remains in the auction Tender Auctions — In tender auctions, all bids are confidential and not displayed to other participants. - You specify your maximum bid amount - An A.A.N. Japan representative submits the bid without incremental bidding steps - The auction house selects the winning bidder based on all submitted offers Because a tender bid is submitted as a final price offer: - Purchase below your submitted limit is not possible - Submitted tender bids cannot be changed or canceled after submission Satellite Auctions — Satellite auctions are remote auction facilities operating under the management of a primary auction house. - The bidding process is similar to standard auctions - Sales conditions and confirmation rules correspond to those of the main auction facility - Transportation costs may differ depending on the geographical location of the satellite facility - All logistics expenses are borne by the buyer AUCNET Auctions — AUCNET is a virtual auction platform that does not operate physical yards or auction facilities. - Vehicles are listed by third-party sellers and dealers throughout Japan - Certain sections and categories may involve increased auction fees - Conditions such as commission amounts, vehicle release timing, and document processing are determined by the third-party seller All additional expenses and risks are borne by the client, including: - Increased auction fees - Higher transportation costs - Other applicable charges TAU and SOCOCARA Auctions — TAU and SOCOCARA are specialized auction systems focused primarily on vehicles affected by: - Insurance claims - Accidents - Natural disasters - Mechanical damage - Other non-standard conditions Many vehicles sold through these systems require: - Repair - Restoration - Dismantling for parts The auction format differs from traditional real-time auctions and operates similarly to internet auction systems such as Yahoo Auctions. - Bidding remains open during a fixed auction period - Participants submit maximum bids - The system automatically outbids competitors by one bidding increment when applicable - The winning bidder is the participant with the highest bid when the auction period ends

Some auction houses offer fixed-price purchase systems without live bidding. Under this format: - The vehicle is listed at a fixed sale price. - The first participant who accepts the price obtains the purchase rights. - No bidding competition takes place. Additional Notes: - Auction houses usually apply higher participation fees for One-Price purchases. - Fee amounts depend on the auction platform. - All additional expenses are borne by the client.

If the seller’s reserve price is not reached during a standard auction, the auction house may offer a post-auction negotiation. Negotiations are possible only: - After the auction ends. - Within the time period set by the auction house. - If the reserve price was not reached. A.A.N. Japan enters negotiations only upon client request. Unless otherwise specified: - Negotiation purchases will not exceed the client’s maximum bid amount. - Successful negotiations may involve additional auction fees. Important: - A.A.N. Japan does not guarantee successful negotiations. - Seller decisions are fully independent. - Response timing is controlled by the seller and auction house. - Seller refusal may occur at any time.

Reverse negotiation occurs when the seller submits a counteroffer after the auction ends without reaching the reserve price. Under this system: - The seller proposes a sale price. - The offer may be sent to a participant who previously bid on the vehicle. - The offered amount cannot exceed the participant’s recorded maximum bid. A.A.N. Japan may approve the purchase without additional client confirmation if: - The seller’s proposed price is equal to or lower than the client’s maximum bid previously submitted for the lot.

Japanese vehicle auctions divide inventory into specialized sections called “corners.” Vehicles are grouped based on: - Vehicle type. - Vehicle condition. - Sales rules. - Seller programs. How Corners Work: - Each corner has its own name or lot-number range. - Different corners may have different bidding rules and participation conditions. - Risk level, fees, and claim conditions vary depending on the section. - Premium sections usually contain more photos and more detailed inspection data. Examples of Common Corners: - Zero / N-Zero / 70,000 MAX / 200,000 MAX — no-reserve or capped-price sections. - 初出品 / JU初売り — first-time listed vehicles. - レギュラー / 国産レギュラー — standard dealer inventory. - 事故現状車 / 現状・不動 — accident or non-running vehicles sold as-is. - ホワイト — vehicles without prior inspection or reserve price. - Regional / Satellite sections — geographically separated auction lanes such as 名古屋E or 横浜フレッシュ. Understanding corners helps buyers: - Filter vehicles efficiently. - Choose appropriate risk levels. - Avoid unexpected logistics or purchase conditions.

The auction sheet is the official vehicle condition report used at Japanese auctions. The seller provides the vehicle information, while the auction inspector evaluates the technical and cosmetic condition. Auction Sheet Includes: - Manufacturer, model, production year, VIN/chassis number, mileage. - Transmission, drivetrain, fuel type, grade, and equipment. - Exterior and interior condition ratings. - Structural repair history. - Damage map showing dents, scratches, corrosion, and repairs. - Inspector comments regarding odors, noises, modifications, and observations. Auction Grading System: - 5 / 6 / S — almost new vehicle. - 4.5 — excellent condition. - 4 / 3.5 — average condition with normal wear. - 3 or lower — significant wear or defects. - R / RA / A — accident-repaired vehicle. Interior Grades: - A — best condition. - D — worst condition.

Auction sheet translation is available upon client request and requires additional processing time. Requests must be submitted: - No later than 3 hours before the relevant auction starts. Late requests: - May be rejected. - May not be completed before bidding begins. If A.A.N. Japan cannot contact the client after translation through available communication channels, the bid may not be submitted to avoid purchasing a vehicle without confirmed translation review. Translation Disclaimer: - Translation is performed by a translator, not a technical specialist. - The translation is not a technical inspection. - Mechanical condition is not verified. - Damage severity is not evaluated. - Causes of defects are not determined. - Repair requirements and wear levels are not assessed. The translator only conveys the meaning of the inspector’s comments without technical interpretation.

Auction sheet corrections are official updates published by the auction house after the lot has already been listed. Corrections may involve: - Mileage. - Auction grade. - Accident history. - Inspector comments. Important: - Corrections are issued exclusively by the auction house. - A.A.N. Japan forwards corrections exactly as received. If corrections affect important vehicle information such as: - Mileage. - Production year. - Grade. - Accident history. A.A.N. Japan may request additional confirmation from the client before continuing participation. If the client cannot be reached, the bid may be canceled to avoid disputed purchases.

Most auction houses offer paid pre-auction inspection services performed on the auction day. Inspection requests must be submitted: - No later than 3 hours before the relevant auction starts. - No later than 16:00 JST on the auction day. Important: - Inspection costs are fully borne by the client. - Inspection scope and procedures depend on the auction house or contractor. If A.A.N. Japan cannot contact the client after receiving inspection results, the bid may not be approved in order to avoid purchasing a vehicle without confirmed inspection approval.

The client is fully responsible for confirming that the purchased vehicle complies with the import regulations of the destination country. This includes, but is not limited to: - Permitted production year for import. - Environmental and technical standards. - Emissions regulations and certification requirements. - Legal restrictions for specific vehicle categories. - Customs procedures and import limitations. - Sanctions or licensing rules applicable in the destination country. The client must independently verify import eligibility before placing a bid. All risks related to: - Import refusal. - Registration refusal. - Inability to legally operate the vehicle. are fully borne by the client. This also includes situations where the vehicle fails inspections or certification procedures required by the destination country.

For standard auctions, bids should preferably be submitted at least 1 hour before the relevant lot begins. Late submissions may still be accepted; however, A.A.N. Japan does not guarantee: - Request processing. - Successful bid submission. - Bid modification or cancellation. Tender Auction Deadline: - Tender bids are accepted strictly until 13:00 JST on the auction day. - Requests submitted after 13:00 JST will not be processed. Auction Schedule Changes: - Auction houses may change schedules without prior notice. - Such changes may affect bidding, modifications, or cancellations. A.A.N. Japan is not responsible for consequences caused by: - Auction rescheduling. - Accelerated start times. - Technical or organizational changes by the auction house. - Inability to submit, modify, or cancel bids due to such changes.

To reduce the risk of losing an auction by a minimal price difference, A.A.N. Japan may apply a protective bid increase (“bid buffer”). Protective Increase Limits: - Up to ¥300,000 → up to ¥25,000 additional increase. - Above ¥300,000 → up to ¥50,000 additional increase. Important: - The bid buffer is used only to improve the probability of winning. - It does not guarantee successful purchase. Japanese auctions operate under: - High-speed bidding environments. - Rapid market fluctuations. As a result, small differences may occur between: - The client’s requested maximum bid. - The final purchase price. A.A.N. Japan is not responsible for minimal bid overruns caused by auction speed or market conditions.

Group bids allow the client to bid on multiple vehicles where purchasing any one of them is acceptable. A.A.N. Japan does not limit: - The number of lots in a group. - The number of groups. - The number of intended purchases. Recommended Time Gap: - A minimum 30-minute difference between auction start times is recommended. Shorter intervals may still be accepted; however: - The client assumes the risk of simultaneously purchasing multiple vehicles. Restriction: - Tender auctions cannot be included in group bid structures.

If multiple A.A.N. Japan clients bid on the same vehicle, priority is given to the client with the higher maximum bid. This follows standard Japanese auction principles where the highest bidder receives priority. When competing internal bids exist: - The higher maximum bid receives primary priority. - Lower bids become secondary. - Secondary bids are not applied unless they exceed the competing bid. This system ensures: - Fair allocation. - Maximum purchase probability. - Proper use of the client’s bid strength rather than a first-come, first-served approach.

Auction Price: - Final vehicle purchase price at auction. - Non-refundable. Auction Fee: - Service fee charged by the auction house. - Depends on the auction company, purchase method, and auction category. - Non-refundable. Consumption Tax (10%): - Applied to auction services and operational fees. - May later be refunded to the company for export transactions if applicable. - The client does not separately pay the refundable portion. Recycling Fee (リサイクル料): - Mandatory vehicle recycling fee. - May be refunded after export. - Not refundable for dismantled vehicles. - Refund procedures are handled by the company. Remaining Road Tax / Shaken Refund (車検残): - Unused road tax amount refunded after deregistration. - Calculated proportionally based on remaining full months. - Refund processing is handled by the company. - The client does not separately pay this refundable amount.

Possible auction outcomes include: - Sold (落札) — the vehicle is sold to the winning bidder. - Canceled (出品取消) — the lot is withdrawn by the seller or auction house. - Unsold (流れ) — the reserve price was not reached. - Sold Through Negotiation (後商談) — post-auction negotiation within a limited time period. - Reverse Negotiation (逆商談) — seller offers the vehicle to the last active bidder. - One Price (一発落札) — fixed-price sale on a first-come, first-served basis. - Buyer Cancellation (落札者キャンセル) — purchase cancellation with applicable penalties. - Seller Cancellation (売主キャンセル) — seller cancels the transaction subject to auction penalties.

Start Price (スタート価格): - The initial bidding price of the vehicle. Desired Price (希望価格): - The seller’s minimum acceptable sale amount. - Hidden until the “Urikiri” threshold is reached. General Market Behavior: - Extremely low start prices may create buyer suspicion. - Excessively high start prices may reduce bidding activity. Recommended Bid Margins: - Up to ¥50,000 → +¥20,000. - ¥60,000–100,000 → +¥50,000. - ¥110,000–500,000 → +¥100,000. - ¥600,000–900,000 → +¥20₀,₀₀₀. - ¥1.₀M–1.5M → +¥5₀₀,₀₀₀.

Lot withdrawal means removal of a vehicle from auction before bidding is completed. A lot may be withdrawn due to: - Seller request. - Errors or inconsistencies in the auction sheet. - Technical or organizational issues. - Seller cancellation decisions. - Other reasons defined by auction house rules. Authority: - Withdrawal decisions are made exclusively by the auction house or seller. - A.A.N. Japan does not influence or control such decisions. If a lot is withdrawn: - All submitted bids are automatically canceled. - The purchase becomes void. - The client has no payment obligation. - Reserved funds are released according to internal procedures. Withdrawal after bid submission does not create grounds for claims against A.A.N. Japan.

Most auction houses allow purchase cancellation only within a limited period after auction completion, typically between 30 and 120 minutes. Cancellation conditions depend on: - Auction house. - Auction category. - Vehicle type. - Auction format. After the permitted period expires, cancellation is generally impossible. Lots Commonly Ineligible for Cancellation: - Severely damaged vehicles. - Special no-cancellation categories. - Vehicles purchased through negotiation formats. Cancellation Penalties: - Approximately ¥85,000 for standard vehicles. - Approximately ¥150,000 or more for expensive or special-category vehicles. Penalty amounts may vary depending on: - Auction rules. - Vehicle category. - Timing of cancellation. A.A.N. Japan: - Does not compensate cancellation penalties. - Does not negotiate penalty reductions. - Does not guarantee cancellation approval. Seller Cancellation: - Sellers may refuse to complete transactions under auction rules. - A.A.N. Japan does not control seller decisions. - Deposits remain available for future purchases according to company terms. Limitation of Liability: - A.A.N. Japan does not guarantee transaction completion after auction victory. - Losses resulting from seller cancellation are not compensated.

Re-listing may be used when cancellation is impossible or financially impractical. Important: - Re-listing does not cancel the original purchase. - The original transaction remains legally binding. - The vehicle is resold through auction procedures. Client Responsibilities: - All re-listing expenses are borne by the client. - Expenses may include auction fees, penalties, transportation, storage, and resale commissions. If the resale price is lower than the original purchase price: - The client must pay the difference. - All additional related expenses also remain payable. A.A.N. Japan: - Does not guarantee successful resale. - Does not guarantee resale value. - Is not responsible for financial losses resulting from re-listing.

Claims may only be submitted within the rules established by the relevant auction house. A.A.N. Japan: - Acts only as an intermediary. - Does not independently determine claim validity. - Does not independently initiate claims. Claims are permitted only: - Within categories allowed by the auction house. - Within the deadlines established by the auction platform. Failure to comply with deadlines or procedures results in automatic loss of claim rights. Claims must be submitted directly by the client through the designated request process.

Typical claim submission deadlines may include: - Exterior or interior discrepancies — auction day. - Registration or specification errors — within 7 calendar days. - Accident or structural damage claims — within 10 calendar days. - Engine or transmission defects — within 15 calendar days. Final deadlines and procedures depend entirely on the auction house rules.

Claims are generally not accepted for: - Accident or as-is vehicles. - White Corner vehicles. - Discount or special-category lots. - Vehicles excluded under auction rules. Vehicle Restrictions: - Older vehicles or high-mileage vehicles may have limited claim eligibility. - Typical thresholds include vehicles older than 10 years or exceeding 150,000 km. Claims are not accepted for issues: - Listed on the auction sheet. - Included in auction corrections. - Mentioned in inspector comments. - Clearly visible during inspection. Claims may also be excluded for vehicles: - With modifications or non-standard equipment. - Purchased through negotiation formats. - Exported outside Japan. - Already transferred to third parties. Compensation Limitations: - Auction houses may limit compensation amounts. - Transportation costs and fees may be allocated between parties. - Final decisions belong exclusively to the auction house.

Unless otherwise specified by auction rules, all vehicles are sold on an “as-is” basis. A.A.N. Japan: - Does not expand claim rights. - Does not alter claim procedures. - Is not responsible for auction house refusal to accept or approve claims. Auction house decisions regarding claims are final and binding.

Auction sheets, photographs, videos, and related auction materials are provided solely for vehicle evaluation and auction participation. All rights belong to: - Auction houses. - Copyright holders. - Authorized parties. The client may not: - Copy or archive auction materials. - Publish materials online or on social media. - Use materials for advertising or commercial purposes. - Transfer materials to unrelated third parties. - Modify or create derivative content. - Build independent databases or analytical systems using auction data.

Stock Vehicles: - Limited inventory. - Fixed prices. - More photographs available. - Faster processing and documentation. - Generally higher prices. Auction Vehicles: - Larger vehicle selection. - Pricing closer to dealer market value. - Lower purchase costs. - Fewer photographs available. - Longer processing and document preparation time.

After purchase, vehicles must be removed from the auction facility within the deadlines established by the auction house. Vehicles are typically transported: - To a warehouse. - To a company yard. - To the port. for export preparation, dismantling, or domestic logistics operations. Vehicle release procedures vary depending on the auction house.

Some auction houses apply: - Outstanding debt limits. - Maximum unpaid purchase limits. If the total unpaid purchase amount exceeds the allowed limit, additional vehicles cannot be released until payment is completed. After payment confirmation, vehicle release authorization is restored. Other auction houses allow vehicle release until the final payment deadline without applying credit restrictions. Certain auction houses release vehicles only after full payment confirmation regardless of: - Purchase volume. - Company credit limits.

Drivers collecting vehicles must carry: - Identification documents. - Valid driver’s license. - Vehicle release authorization documents or release tickets.

For regions separated by water such as: - Hokkaido. - Shikoku. - Kyushu. - Okinawa. combined transportation methods are used, including: - Inland transportation to the ferry terminal. - Ferry transportation. - Final inland delivery. Transportation costs are generally higher due to multiple logistics stages, and delivery times depend on ferry schedules. If a vehicle does not meet ferry transportation requirements, alternative transportation methods may be required at the client’s expense. A.A.N. Japan: - Does not guarantee ferry transportation availability. - Is not responsible for additional expenses caused by vehicle non-compliance with ferry transportation requirements.

To qualify for ferry transportation, the vehicle must meet minimum operational and safety requirements. Requirements include: - Minimum ground clearance of 15 cm. - Hood must open normally. - Engine must start. - Transmission must operate properly. - Vehicle must move under its own power. - Steering and wheels must function correctly. - Tires must hold air and allow movement. - Service brake and parking brake must function properly. - Vehicle must enter and exit the ferry without towing or lifting equipment. - Windshield must be intact. - Side and rear windows must be installed and closable. - Cabin, trunk, and roof storage areas must be completely empty. Personal belongings, spare parts, and additional cargo are not permitted inside the vehicle during ferry transportation.

Ferry transportation is prohibited if any of the following conditions apply: - Engine does not start. - Vehicle cannot move independently. - White or black smoke is present. - Oil, fuel, coolant, or other fluid leaks exist. - Hybrid or electric batteries are damaged or unstable. - Windshield or windows are missing, damaged, or improperly secured. - Foreign objects or cargo are present inside the vehicle.

Vehicle export from Japan begins with legal deregistration. After completion of the deregistration procedure (抹消登録 / Massho Toroku), the vehicle obtains export status and can legally leave Japan. After deregistration, the vehicle is no longer permitted for operation on Japanese roads. Types of Deregistration: - 一時抹消登録 / Ichiji Massho Toroku — temporary suspension of registration. - 永久抹消登録 / Eikyu Massho Toroku — permanent deregistration for scrapping or disposal. - 輸出抹消仮登録 / Yushitsu Massho Toroku — export deregistration for overseas shipment. Deregistration is processed through: - 陸運局 (Rikuunkyoku) — Land Transport Office. - 運輸支局 (Unyu Shikyoku) — Transport Branch Office. Required Documents: - 車検証 (Shakensho) — vehicle registration certificate. - Owner identification documents. - Corporate documents (for companies). - 印鑑証明書 (Inkan Shoumeisho) or power of attorney. - Deregistration application. - Parking registration cancellation (if required). - Front and rear license plates. After completion: - Registration is canceled. - Export or disposal documentation is issued.

After deregistration, an Export Certificate is issued. The Export Certificate confirms: - Legal ownership. - Deregistration status. - Authorization for international export. The certificate is issued by: - 陸運局 (Rikuunkyoku) under MLIT supervision. Required Documents: - Deregistration certificate. - Vehicle registration number. - Company documents. - Export application. The Export Certificate includes: - Vehicle make and model. - Chassis number or VIN. - First registration date. - Owner information. - Deregistration date. - Export authorization confirmation. After issuance, shipping documentation is prepared.

International vehicle exports commonly use Incoterms 2020 rules under: - FOB. - CFR. - CIF. FOB: - Seller completes export customs clearance. - Seller delivers cargo onboard the vessel. - Buyer pays ocean freight. CFR: - Seller pays ocean freight to destination port. - Buyer pays cargo insurance. CIF: - Seller pays: - Ocean freight. - Marine cargo insurance. to the destination port.

Shipping companies may apply different freight payment methods. Freight Prepaid: - Freight is paid before shipment by the shipper. Freight Collect: - Freight is paid by the consignee at the destination port.

Ro-Ro (Roll-on / Roll-off): - Vehicles are driven onto and off the vessel. - Used for operational vehicles. 20FT Containers: - Standard 20-foot shipping containers. 40FT HC Containers: - 40-foot High Cube containers with increased cargo capacity and internal height.

Ro-Ro vessels transport vehicles by driving them directly onto the ship and securing them with lashing systems. Advantages: - Lower cost compared to container shipping in many cases. - Suitable for single-vehicle shipments. Limitations: - Vehicle must be operational. - Vehicle must be able to move under its own power. - Mechanical condition must allow safe loading and unloading.

Ro-Ro shipment costs include multiple components: Car Price (車両代金) - Final auction purchase price. Auction Fee (落札料金) - Auction service fee depending on group, method, and section. Transportation to Yard (陸送料金) - Transport from auction to yard or port. Inspection (検査) - Required for specific destinations. Shipping Charges (船積み料金) - Includes storage (often ~30 days free), photo reports, and handling services. Radiation Inspection (放射能検査) - Typically required to meet threshold standards (e.g. 0.3 μSv/h). Customs Clearance (税関手数料) - Export declaration processing via customs brokers. Loading Charges (積込み料金) - Vessel loading and handling operations. Securing Materials (掛割) - Cargo securing consumables. Lashing Charges (固定料金) - Vehicle securing on vessel. Ocean Freight (海上運賃) - Transport from Japan to destination port. Courier Charges (宅配料金) - Delivery of documents (B/L, export certificate, invoice, packing list via DHL/FedEx/EMS). Agent Commission (取扱手数料) - Administrative and brokerage services.

Freight is calculated based on vehicle volume (m³) using shipping line tariffs. Base ocean freight is adjusted with surcharges such as BAF (fuel), CAF (currency), WRS (war risk), PSS (peak season), PCS (port congestion), EBS (emergency bunker), and LSS (low sulphur fuel compliance). Rates are quoted in USD and are subject to market and seasonal fluctuations.

Bookings are confirmed in advance with shipping lines and include vessel details, ETD, ETA, and booking number. Standard cut-offs include: Yard Cut-Off (3–5 days before ETD) for delivery of vehicle; SI Cut-Off (2–3 days) for shipping instructions and B/L data; Customs Cut-Off (1–2 days) for Export Declaration via NACCS; Documentation Cut-Off upon completion of required paperwork. Failure to meet deadlines may cause roll-over, storage fees, or rebooking.

Main export ports include Yokohama (largest hub), Nagoya (Toyota region exports), Kobe (Kansai mixed cargo), Osaka (flexible alternative), and Hakata (Kyushu region). Port selection depends on auction location, vehicle origin, shipping line, and destination country.

Certain destination countries require pre-export inspections conducted in Japan. Common agencies include EAA (Tanzania, Uganda), INTERTEK (Mozambique), JEVIC (Kenya, Uganda, Zambia), QISJ (Kenya, Tanzania), BUREAU VERITAS (Sri Lanka, Mauritius), JAAI (Sri Lanka, Mauritius, Tanzania, Bangladesh), MAF (New Zealand), and VCA (Malta). Inspections are typically performed at port before shipment.

Used for non-operational vehicles, oversized units, or mixed cargo (vehicles, engines, parts). Containers include 20FT, 40FT, and 40HQ units. Advantages include higher security and sealed transport until destination. Disadvantages include higher cost and required consolidation at a single loading point, increasing inland logistics expenses.

Includes vehicle cost, auction fee (if applicable), inland transport to yard, packing (banning), dismantling (if required), agent commission, container drayage, seal fee, customs processing (ED via NACCS), broker service fees, VGM weight verification, THC (terminal handling charges), ocean freight, and courier delivery of documents.

Includes base ocean freight, BAF, CAF, equipment charges, and terminal handling charges. Additional possible surcharges include DOC fee, ISPS security surcharge, PSS peak season surcharge, congestion fees, and storage/demurrage charges. Costs vary depending on route, season, and port conditions.

CY Cut-Off (3–5 days before ETD): container delivery deadline. VGM Cut-Off (2–3 days): verified gross mass submission. SI Cut-Off (2–3 days): shipping instructions and B/L data. Customs Cut-Off (1–2 days): Export Declaration via NACCS. Documentation must be completed before carrier closure. Delays may cause roll-over, storage fees, or rebooking.

Covers cargo from handover in Japan until unloading at destination. Types include All Risks (ICC A) and Total Loss Only (ICC C). Insurance value is typically (cargo + freight) × 110%. Required documents include exporter/consignee details, cargo description, declared value, and shipping documents. Claims must be reported within 3 days with supporting evidence.

Standard documents include Proforma Invoice, Commercial Invoice, Packing List, Shipping Instructions (SI), Export Declaration (ED via NACCS), Bill of Lading (B/L), and Marine Insurance Certificate (if applicable). Additional certificates may include deregistration, radiation inspection, and export inspection documents.

Bill of Lading (B/L) serves as receipt, contract, and title document with variants such as Original, Telex Release, Sea Waybill, and Switch B/L. Export Declaration (ED) confirms customs clearance via NACCS. Commercial Invoice and Packing List must match SI and B/L. Export Certificate (EC) issued by MLIT confirms deregistration. Inspection and radiation certificates are required before documentation cut-off.

All shipper, consignee, cargo marking, quantity, and HS code data are verified before issuance of the Bill of Lading (B/L). Any discrepancies between Commercial Invoice, Shipping Instruction (SI), Export Declaration (ED), and Bill of Lading must be corrected before vessel departure. Original documents are released after full payment or according to contractual terms. After completion, export records and shipping documents are archived by A.A.N. Japan.

Booking amendments may include destination port, consignee data, chassis numbers, vessel schedules, or freight terms. Requests must be submitted before SI cut-off and may incur amendment fees. Roll-over refers to postponement to the next vessel caused by missed deadlines, missing documents, weather, or port congestion. Cancellation requests must be submitted in writing and may involve penalties after vessel closing. Bill of Lading and customs amendments require formal processing and updated records are reflected in the client dashboard.

Major Ro-Ro shipping lines include NYK Line, MOL, K Line, Eukor, Hyundai Glovis, Hoegh Autoliners, and Wallenius Wilhelmsen, serving Africa, Middle East, Europe, Oceania, and the Americas. Major container carriers include ONE, MSC, CMA CGM, Hapag-Lloyd, Maersk, Evergreen, HMM, Yang Ming, and PIL, providing global container coverage across Asia, Europe, Africa, Middle East, and North/South America.

After shipment, customs clearance and vehicle registration must be completed in the destination country. Required documents may include Commercial Invoice, Bill of Lading, Export Certificate, and Inspection Certificate. Import duties, VAT, and local taxes may apply. Registration procedures may also require safety inspections, emissions testing, lighting compliance, and speedometer conversion depending on local regulations.

Vehicles may be collected through self-pickup at the destination port or through Door-to-Door (D2D) delivery services. Self-pickup requires customs clearance and collection from temporary storage before free-time expiration. D2D delivery may operate under DAP, DAT, or DDP Incoterms, depending on responsibility for transportation, customs procedures, duties, taxes, and unloading.

Bonded Warehouses are customs-controlled storage facilities where imported or export cargo may be stored without immediate payment of duties or taxes. They are commonly used in international trade and logistics for temporary storage before customs clearance, export, or resale. Advantages include deferred duty payments, possible duty exemptions for re-export, and optimization of cash flow and cargo distribution.

When purchasing, inspecting, or exporting vehicles from Japan, it is important to correctly understand vehicle identification, structure, and configuration details. Each Japanese vehicle is defined by a set of primary identifiers, including: - Manufacturer - Model - Chassis number - Vehicle grade - Factory options These identifiers determine: - Vehicle configuration - Production year - Market value This section explains: - How to read these identifiers. - How to confirm production dates. - How to verify specifications and equipment using reliable online resources.

For customs duties and tax calculations, most customs authorities require the vehicle production year. Japanese auction sheets indicate only the date of first registration (初度登録 / Shodo Tōroku), not the actual production month and year. Resources for Determining Production Date by Chassis Number: - OLIAC — https://oliac.ws/autocatalog/ - EPC-Data — https://www.epc-data.com/ - PartsFan — https://partsfan.com/ - JP Center Month Decoder — https://japan-partner.com/check-manufacture-year - ELCATS — https://www.ilcats.ru/ These resources help confirm the production month and year required for: - Customs clearance. - Tax calculation. - Import compliance procedures.

Japanese Vehicle Manufacturers: - Toyota - Honda - Daihatsu - Nissan - Suzuki - Mazda - Mitsubishi - Subaru - Isuzu - Hino - Kawasaki - Mitsuoka The manufacturer and model form the foundation of Japanese vehicle identification. Manufacturer: - The company that produced the vehicle. Model: - The commercial name of the vehicle within the manufacturer’s lineup. The model determines: - Vehicle platform. - Body type. - Engine type. - Generation. - Production period.

The chassis number uniquely identifies a vehicle and serves a role similar to the VIN system used in Europe and the United States. In Japan, the chassis number is logically divided into two parts: - Environmental emission prefix. - Manufacturer code after the hyphen. Environmental Emission Prefix: Assigned by MLIT (Ministry of Land, Infrastructure, Transport and Tourism of Japan) under the Road Transport Vehicle Law. Indicates: - Environmental compliance level. - Fuel type. - Emission standard category. Examples: - ABA — complies with 2005 emission standards. - AAA — hybrid vehicle compliant with 2005 standards. - CBA — 50% emission reduction compared to 2005 standards. - DBA — 75% emission reduction compared to 2005 standards. - DAA — hybrid vehicle with 75% emission reduction compared to 2005 standards. Manufacturer Code After the Hyphen: Defined by the vehicle manufacturer and contains information about: - Engine type. - Drivetrain. - Model family. The final digits represent the serial number of the specific vehicle. Toyota Corolla Family Examples: - NZE121 — Corolla 2WD. - NZE124 — Corolla 4WD. - NZE121N — Corolla Spacio. - NZE121G — Corolla Fielder. Engine Prefixes: - NZ → approximately 1500cc. - ZZ → approximately 1800cc. Drivetrain Digits: - 0–3 → 2WD. - 4–6 → 4WD. Nissan: The letter “N” in the chassis code generally indicates 4WD. Examples: - AK12 → 2WD. - BNK12 → 4WD. Mazda: The numeric portion often reflects engine displacement. Examples: - DY3W → 1300cc. - DY5W → 1500cc. Honda: Alternating digits may indicate drivetrain type. Examples: - GD1 → 2WD. - GD2 → 4WD. - GD3 → 2WD. - GD4 → 4WD.

A vehicle generation is a series of the same model produced during a specific time period using a common platform and body structure. When a new generation is introduced, the vehicle usually receives: - A new body design. - Updated platform. - Different engines. - New electronics. - Updated safety systems. Manufacturers use generations to distinguish different development stages of the model. A generation change typically occurs every 5–10 years depending on the manufacturer and model. Between generations, manufacturers often perform one or more facelifts (minor model changes) to maintain competitiveness. Examples: - Honda Fit GD — first generation. - Honda Fit GE — second generation.

A vehicle grade (trim level) is the combination of equipment, options, and technical specifications installed by the manufacturer for a specific version of the model. The grade determines: - Equipment level. - Comfort features. - Safety systems. - Market value. Manufacturers typically offer: - Base trims. - Mid-range trims. - Premium trims. - Limited or regional editions. Differences Between Vehicle Grades: Different grades of the same model may vary by: - Engine type. - Drivetrain (2WD / 4WD). - Transmission. - Interior configuration. - Multimedia system. - Safety systems. - Exterior styling. - Factory-installed optional equipment. Examples of Japanese Grade Naming Systems: Toyota: - X - G - Z - S - Executive Lounge Honda: - B - G - L - RS - Absolute Nissan: - S - X - Highway Star Mazda: - XD - Sport - Touring Subaru: - GT - STI - Limited Example: Mazda Demio Grades Cozy: - Bright and comfortable interior designed for urban use. Sport: Features: - 1.5L MZR engine. - HID headlights. - Alloy wheels. - Sport-oriented styling. Casual: - Simple family-oriented trim with a light interior design. Regional Specification Example: - 寒冷地仕様車 (Kanreichi Shiyō Sha) — cold-climate specification vehicles designed for regions such as Hokkaido. Typical features include: - Higher-capacity battery and alternator. - Reinforced heater and thermostat. - Heated mirrors and windshield. - Fog lights. - Low-temperature antifreeze specification.

Vehicle grade should always be verified through official manufacturer resources because auction sheets may occasionally contain inaccuracies. Manufacturer Grade Verification Resources: - Toyota Grade Search — https://www.toyota.co.jp/grade/dc/top - Nissan Grade Search — https://grade-search.nissan.co.jp/GRADE/search.html - Subaru Grade Search — https://grade-search.subaru.co.jp/luw/ - Mazda Grade Search — https://www2.mazda.co.jp/grade-search/ - Honda Grade Search — https://grade.customer.honda.co.jp/apps/grade/hccg0010101/agree - Suzuki Grade Search — http://grade-search.suzuki.co.jp/SGRE/page/gradeSearch.html - Mitsubishi Grade Search — https://inquiry.mitsubishi-motors.co.jp/reference/GradeSearch.do - Daihatsu Grade Search — https://inquiry.daihatsu.co.jp/gradeweb/ Importance of Grade Verification: Grade verification helps avoid pricing and specification mistakes. For example: The difference between: - Toyota Crown Athlete V with 1JZ-GTE turbo engine. and - Naturally aspirated Athlete with 1JZ-FSE engine. may affect market value by nearly two times.

Options are additional features selected by the buyer to improve convenience, comfort, and functionality. There are two main categories of options: - Factory options. - Dealer-installed options. Factory Options: Factory options are installed during vehicle production and generally cannot be added later. Typical Examples: - OEM navigation system. - Advanced safety system packages. - Rear-view camera and monitor. - Smart key and keyless access system. - Leather seats. - Sunroof. Dealer-Installed Options: Dealer options are installed by the dealer after vehicle production. Typical Examples: - Floor mats. - ETC electronic toll collection unit. - Remote engine starter. Impact of Options: Options influence: - Resale value. - Overall vehicle price. - Market demand. Official catalogs and online grade search systems usually contain detailed option lists for each model.

Japanese manufacturers periodically update vehicle models to maintain market competitiveness. Minor Change (マイナーチェンジ / Minor Change): A limited update of: - Exterior styling. - Interior design. - Equipment and features. without major changes to: - Powertrain. - Core vehicle structure. Minor changes are typically performed every 2–4 years. Terminology: - 前期 (Zenki) — early version before facelift/update. - 後期 (Kouki) — late version after facelift/update. Full Model Change: A complete generation redesign involving: - New engine lineup. - New chassis / platform. - Re-designed interior. - Re-designed exterior. while retaining the same model’s name. Typically occurs every 4–6 years, though longer cycles may apply for imported or niche models. Big Minor Change: A major facelift or deep mid-cycle update approaching a full redesign.

For studying: - Technical specifications. - Body variations. - Grade levels. the following online catalogs may be used: - JP Center Catalog — https://jpcenter.ru/japan-catalog/ - Goo Net Exchange Catalog — https://www.goo-net-exchange.com/catalog/ - TCV Catalog — https://www.tc-v.com/specs/ These resources provide: - Technical specifications. - Engine variations. - Production periods. - Grade comparisons. for most Japanese vehicles.

Proper understanding of: - Manufacturer. - Model. - Chassis number. - Grade. - Options. ensures: - Accurate vehicle evaluation. - Correct customs declaration. - Fair pricing. Verification of production year and vehicle grade using the listed tools reduces risks and supports transparent and compliant trade in Japanese vehicle exports.

The engine is the primary mechanical component of any vehicle. Correct identification of: - Engine family - Displacement - Configuration - Technical suffixes (turbocharged, fuel injection, etc.) is necessary for: - Evaluating performance and specifications. - Selecting compatible spare parts. - Verifying environmental compliance and customs classification.

An engine family is a group of engines built on the same engineering platform and sharing a common design architecture. Manufacturers group engines into families based on: - Cylinder block design. - Cylinder layout. - Fuel delivery system. - Other technical characteristics. Main engine family attributes: - Engine displacement. - Fuel type. Example: Toyota JZ Family — a well-known engine family sharing common structural architecture and engineering design.

An engine model is a specific version within an engine family. Different engine models may vary by: - Turbocharging system. - Fuel injection system. - Electronics. - Power output. - Generation. Primary engine model attributes include: - Naturally aspirated or turbocharged configuration. - Number of turbochargers. - Horsepower and performance characteristics. Example: Toyota 2JZ-GTE — specific turbocharged performance engine model within the Toyota JZ engine family.

Engine set configuration refers to the specific package of the engine and related components. The same engine may be sold in different configurations. Examples of engine configurations: - Engine Block Only — engine assembly without additional drivetrain components. - Engine with Transmission — engine supplied together with the transmission. - Engine with Front Suspension and Transmission — complete front assembly including engine, transmission, and front suspension components.

Japanese engine codes are generally built according to the following structure: Format: Engine Family – Displacement – Technical Suffixes The letter portion identifies the engine series or family. Examples: - 1JZ - 2GR - SR - K20 The numbers indicate engine displacement in deciliters or liters. Example: - "20" in "SR20DET" means 2.0 liters. Suffixes describe technical characteristics such as: - Turbocharging. - Valve train configuration. - Fuel injection system. - Other engineering features. Example: 1JZ-GTE - 1JZ — inline 6-cylinder, 2.5L engine family. - G — performance-oriented Twin Cam cylinder head. - T — turbocharged engine. - E — electronic fuel injection.

Common suffixes used in Japanese engine codes: - G — performance version, wide-angle cylinder head (Twin Cam). - F — economy-oriented version, narrow-angle cylinder head. - T — turbocharged. - E — electronic / multi-point fuel injection. - S — direct injection system. - V / VV / VVT — variable valve timing system. - D — diesel engine. - L — longitudinal layout or increased displacement. Examples: - 1JZ-GE - 1NZ-FE - SR20DET - 3S-GE - 2GR-FSE - 2KD-FTV Example of combined engine code: SR20DET - SR — engine family. - 20 — 2.0L displacement. - D — DOHC. - E — electronic fuel injection. - T — turbocharged.

Primary engine specifications include: - Engine displacement (liters / cubic centimeters). - Number and arrangement of cylinders. - Aspiration type (turbocharged / naturally aspirated / supercharged). - Fuel type (gasoline / diesel / hybrid). - Valve train system (SOHC / DOHC / VVT-i / i-VTEC, etc.). - Power output and torque (kW / PS, N·m / kg·m). - Environmental compliance code (DBA, DAA, etc.).

To properly offer or supply the correct engine, accurate information must be provided. Incomplete or incorrect information may result in: - Compatibility issues. - Incorrect engine selection. - Shipment delays. Required information: - Chassis Number (example: DBA-NHW20) — determines generation, engine type, drivetrain, and environmental standard. - Engine Model (example: 1NZ-FE / 2KD-FTV / 1JZ-GTE) — ensures exact compatibility. - Vehicle Make and Model (example: Toyota Corolla Fielder / Honda Stepwgn / Nissan Serena). - Production Year. - Fuel Type and Transmission. - Drivetrain Type (2WD / 4WD / AWD). - Required Configuration (Full / Basic / Engine Set).

Common engine supply configurations: - Full Engine (Long Block) — complete engine assembly with attached auxiliary components. - Basic Engine (Bare Engine) — engine block and cylinder head only. - Engine Set — complete package including engine, transmission, ECU, and wiring harness.

Providing complete and accurate information ensures: - Correct engine selection and compatibility. - Accurate pricing. - Proper export and customs classification. - Fast and error-free shipment processing. This identification standard reduces the risk of mistakes and supports transparent international trade of Japanese engines.

In Japan, there are three primary methods for wholesale purchasing of used auto parts: 1. Scrap Yards (Recycling Facilities). Facilities where end-of-life vehicles are dismantled for scrap metal recovery and reusable parts extraction. 2. Parts Shopping (On-Site Purchasing). Visiting dismantling yards directly to inspect and purchase parts on location. 3. Customer-Order Dismantling. Dismantling specific vehicles based on customer requests or vehicles purchased through auctions. Each method differs in: - Availability. - Pricing. - Export conditions. - Level of control over part selection. This section explains: - How the Japanese automotive recycling industry operates. - Why direct access is often restricted. - Why overseas companies typically cooperate with Japanese dismantlers through export partners.

In Japan, recycling facilities (scrap yards) are licensed enterprises operating under the Automobile Recycling Act. There are more than 800 such facilities across the country, ranging from: - Small workshops processing 20–30 vehicles per day. - Large industrial complexes dismantling 200–300 vehicles daily. Large facilities are often part of industrial groups involved in: - Metal processing. - Press and shredder operations. - Logistics. Smaller companies usually specialize only in vehicle dismantling. The industry is regulated by: - NGP — Japan Automobile Recycling Business Cooperative Association (全国自動車リサイクル事業連合協同組合). Access Restrictions: Direct access for foreign buyers is highly restricted. Main reasons: - Operational efficiency. - Domestic market focus. - Lack of export specialization. - Lack of English-speaking staff. - Existing local wholesale buyers. - Low attractiveness of small overseas orders.

Foreign buyers typically work through indirect access channels. 1. Through an Export Partner (“Scrap Access”). A Japanese export company cooperates with the recycling facility, supervises operations, and organizes export shipments. Access may require: - Commission fees. - Minimum monthly purchasing volume. 2. Through Bilingual Yard Staff. Some recycling facilities in: - Sapporo. - Hamamatsu. - Toyama. - Okinawa. - Hakata. employ English-speaking staff for overseas clients. 3. Through Permanent Presence in Japan. Some overseas companies establish offices in Japan and work directly with licensed dismantling facilities.

Recycling facilities generally do not perform: - Dismantling. - Cleaning. - Packaging. for export customers. These operations are usually handled by the buyer or the buyer’s team under yard supervision. A dismantling or removal fee is commonly charged for: - Engines. - Transmissions. - Doors. - Major components. Country-Based Team Restrictions: To avoid conflicts between buyers, many facilities allow only one foreign team from each country to operate at a single yard. Characteristics of scrap yard parts: - Lower prices. - Usually sourced from older vehicles. Independent access is theoretically possible through Japanese intermediaries, but in practice is difficult due to: - Volume requirements. - Legal responsibility. - Language barriers. Stable cooperation generally requires: - Regular purchasing activity. - Physical presence at the facility.

This method involves personally visiting Japanese dismantling yards and purchasing only the required parts. Typical process: - Renting transportation. - Visiting multiple dismantling facilities. - Negotiating prices directly on-site. Advantages: - Payment only for required parts. - No excess inventory. - Ability to inspect quality before purchase. Disadvantages: - Requires visa, accommodation, and transportation arrangements. - Requires rental warehouse or storage yard. - Export procedures must be handled by a licensed Japanese exporter. - Some facilities may refuse cooperation without proof of legal export operations. Typical process: 1. Arrival in Japan. 2. Visiting dismantling yards. 3. Price negotiation. 4. Export arrangement through a licensed exporter. Suitability: Suitable for small purchasing volumes but requires: - Significant time. - Organizational effort. - Additional expenses.

This method involves purchasing and dismantling specific vehicles according to customer technical requirements. The process begins with auction vehicle purchase followed by dismantling according to pre-agreed specifications. Advantages: - Ability to select a specific vehicle. - Better control over: - Engine type. - Grade. - Mileage. - Equipment level. - Vehicle condition. Disadvantages: - Remaining unsold parts inventory. - Longer processing time. - Higher operational costs. Additional costs may include: - Auction fees. - Domestic transportation. - Labor costs. - Packaging expenses.

Each purchasing method has different objectives and limitations. Scrap Yard Purchasing: - Lower-cost parts. - Usually older inventory. - High dependence on local recycling facilities. Parts Shopping (On-Site Purchasing): - Maximum freedom of selection. - Requires operational experience and infrastructure. Customer-Order Dismantling: - Precise fulfillment of customer requirements. - Higher overall operational cost.