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You may have been a victim while working with Japanese brokers.

The following information will help you win bids for lower prices, less commission fees and with a higher chance of success.

First, let us go over the procedures of when taking part in a Japanese government surplus aircraft sale.

The issue starts with the fact of the Japanese consumption tax (CT), also known as VAT or GST in other countries. Now the CT in Japan is 10% (8% until September 2019).

When an aircraft in Japan is sold, it is not necessary for the foreign buyers to pay the 10% CT. Therefore, Japanese brokers pass on the 10% CT to the sellers once, but then the 10% CT is reimbursed by Japanese government after six to twelve months.
Buyers who have dealt with other Japanese brokers, seem being required to pay the brokers commission and additional 10% CT without being informed by the brokers. Aero Facility only requires commissions agreed with buyers and DOES NOT require the 10% CT.
That affects a big difference of bidding price difference between Aero Facility and other brokers and the results it can bring. (Figure1).

Figure 1: When you try a bid on aircraft at USD 1,000,000 including a 8% commssion(COM) for the bidding price,

For example, when making a bid of USD 1,000,000 on an aircraft and setting a broker commission of 8%, Aero Facility will only consider a broker commission of 8%. This is a general and understandable deal between a buyer and a broker. Whereas, some of other Japanese brokers will not only include a broker commission of 8%, but also the 10% CT of the bidding price itself to what would look like a broker commission. That is in total about 16%.
This results in the buyer reduces the chances of winning the bid.
Or if you win the bid, it concludes other brokers in charging the buyer an amount of around 16% of your total offer.

Aero Facility offers a way to confirm whether you may have been affected by such issues above by your Japanese brokers.
You can see the bidding result of Japanese government surplus aircraft sales in the following website.
http://aero-jp.com/bit_result
This is a chance for you to see if your brokers supplied you with the right bidding price which excluding the 10% CT.

Knowing that, would you still like to deal with your existing Japanese brokers?
If you have used other Japanese brokers to purchase government surplus aircraft in the past and suspect that you have been affected by transactions similar to the ones above, please feel free to contact us for a consultation.