Twice a year, Japanese households and companies send gifts to people they want to thank: clients, suppliers, landlords, mentors, a doctor. Ochugen goes out in summer, typically from early July, and later in some regions, particularly western Japan. Oseibo goes out in December, ideally before the last week of the year. The gifts are usually consumables such as beer, coffee, fruit, ham, cooking oil or gift catalogues, often ordered through department stores, which deliver them with formal wrapping and paper.
For companies the custom expresses an ongoing relationship more than gratitude for any single transaction. It is strongest in traditional industries and with long-standing domestic clients and suppliers. It has been declining for years: many companies have adopted policies abolishing what are sometimes called empty courtesies, and some publicly ask partners not to send them.
There are legal limits. National public servants are restricted by the National Public Service Ethics Code from accepting gifts from parties with an interest in their work, and local governments have similar rules. Gifts to foreign officials are governed by the Unfair Competition Prevention Act. For tax, business gifts are generally treated as entertainment expenses, which have limited deductibility.
What it means for a foreign employer
- Decide your policy and tell the Japan team. Your global anti-bribery and gifts policy probably already covers this. Make it explicit whether Japan may send seasonal gifts, to whom and up to what value, so local staff are not guessing.
- Do not stop abruptly without explanation. If the Japan business has sent gifts to key clients for years, dropping them silently can be read as a cooling of the relationship. A short note explaining a new policy avoids that.
- Never send them to officials. Gifts to anyone in government or a public body with a stake in your business carry real legal risk.
- Know what returning gifts means. A gift sent back, or a polite request not to send one, usually reflects the recipient's policy, not offence.
Sources
- National Public Service Ethics Act (1999) and National Public Service Ethics Code.
- Unfair Competition Prevention Act, Article 18 (bribery of foreign public officials).
- Corporation Tax rules on entertainment expenses (Special Taxation Measures Act, Article 61-4).