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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: info@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 - Generate an invoice through the AANDO personal dashboard. - Transfer funds to the official A.A.N. Japan account at MUFG Bank. - 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 рядом with the displayed wheels, allowing participants to inspect the products before bidding begins. Auction Process - A.A.N. Japan announces the starting price. - Registered participants place bids by increasing the offered amount. - 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 the bidding limit specified by you. The winner is the participant who submits the highest bid at the moment 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 the sale of the vehicle. The final auction price may remain below your maximum bid, while the vehicle may still remain unsold if: - The seller’s reserve price is higher than the highest active bid, and - Only one active bidder remains in the auction Tender Auctions In tender auctions, all bids are confidential and are not displayed to other participants. You specify your maximum bid amount. An A.A.N. Japan representative submits the bid in tender format 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 fully correspond to those of the main auction facility. Due to the geographical location of satellite facilities, transportation costs may differ from those associated with the main auction venue. All logistics expenses are borne by the buyer. AUCNET Auctions AUCNET is a virtual auction platform that does not operate its own physical yards or auction facilities. Vehicles are listed by third-party sellers and dealers located throughout Japan. Certain sections and categories within the AUCNET system are subject to increased auction fees differing from standard auction charges. Conditions for such categories, including: - Commission amounts - Vehicle release timing - Document processing procedures are determined by the third-party seller. All additional expenses and risks associated with participation in such categories 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 primarily focused on vehicles affected by: - Insurance claims - Accidents - Natural disasters - Mechanical damage - Other non-standard conditions A significant portion of 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 their maximum bids, and the system automatically outbids competitors by one bidding increment when applicable. The winning bidder is the participant with the highest bid at the time the auction period ends.

Certain auction houses offer a One-Price / One-Click format, where a vehicle is listed at a fixed price without a bidding process. Under this format, the first participant who accepts the listed price obtains the right to purchase the vehicle. For such lots, auction houses apply increased auction participation fees, the amount of which is determined by the respective auction platform. All additional expenses, including increased auction fees, are borne by the client.

If, during a standard auction, the seller’s reserve price is not reached, the auction house may offer a purchase-through-negotiation format. Negotiations are available only: - After the auction has ended - Within the time period specified by the auction house - Provided that the reserve price was not reached A.A.N. Japan enters negotiations only upon the client’s request. Unless otherwise specified, A.A.N. Japan may negotiate and purchase the vehicle at a price not exceeding the client’s maximum bid amount. If the negotiation purchase is successful, auction houses may apply increased auction fees. A.A.N. Japan: - Does not guarantee successful negotiation outcomes - Does not influence the seller’s decision - Does not control negotiation response timing - Is not responsible for seller refusal

Reverse negotiation purchase is a vehicle acquisition format in which the seller, after auction completion without reaching the reserve price, submits a counteroffer. Under this negotiation format: - The seller specifies the price at which they are willing to sell the vehicle - The offer may be sent to a participant who previously bid on the lot - The offered price must not exceed the participant’s maximum bid submitted during the auction A.A.N. Japan reserves the right to independently approve the vehicle purchase through reverse negotiation without prior consultation with the client if the seller’s offered price is equal to or lower than the client’s previously recorded maximum bid.

Japanese vehicle auctions are divided into specialized sections known as “corners,” where vehicles are grouped according to: - Vehicle type - Condition - Sales rules - Seller programs Understanding the auction section system helps participants: - Filter lots more efficiently - Select an appropriate level of risk and commission structure - Avoid unexpected logistics or purchase conditions How Auction Sections Work Each section has its own name or numbering range (for example, N-Zero 00801–00832), allowing participants to track lot order and auction flow. Different sections may apply different participation rules, including: - First-time listing categories - Premium quality programs - Dealer-only participation - No-reserve sales Commission structures and associated risks may vary depending on the section. For example: - One-Price sections - “As-is” sale sections may include limitations on claims or warranty rights. The level of available vehicle information also depends on the section type. Premium sections generally contain: - More photographs - More detailed inspection comments - Higher-quality condition reporting than “Accident Vehicle” or “現状車” (As-Is Vehicle) sections. Examples of Common Auction Sections Zero / N-Zero / 70,000 MAX / 200,000 MAX No-reserve auctions or auctions with bid ceiling limits Starting price from ¥0 High bidding competition - 初出品 / JU初売り — vehicles listed for sale for the first time. - レギュラー / 国産レギュラー — standard dealer inventory lots. - 事故現状車 / 現状・不動 — accident vehicles or non-operational vehicles sold without warranty. - ホワイト Vehicles without pre-inspection or reserve price, but generally technically operational. Regional / Satellite Sections Auctions grouped by geographic region, for example: - 名古屋E - 横浜フレッシュ

An auction sheet is the official “vehicle condition report” used at Japanese auto auctions. The seller provides the primary vehicle information, while the auction inspector evaluates the technical and cosmetic condition of the vehicle. Buyers rely on the auction sheet when making purchasing decisions. Auction Sheet Includes Manufacturer, model, production year, chassis number / VIN, mileage Transmission type, drivetrain, fuel type, vehicle grade and equipment Exterior and interior condition ratings Information regarding structural repairs Damage map indicating dents, scratches, corrosion, and repairs Inspector comments regarding noise, odors, modifications, and other observations Auction Grading System Vehicle Grades 5 / 6 / S — Almost new vehicle 4.5 — Excellent condition 4 / 3.5 — Average condition with typical wear 3 and below — Significant defects or wear R / RA / A — Accident-repaired vehicle Interior Grades Interior condition is graded from: - A (best condition) to D (worst condition)

Auction sheet translation is performed upon client request and requires additional processing time. The request must be submitted: - No later than 3 hours before the start of the auction for the relevant lot Requests submitted after the specified deadline may: - Be rejected, or - Be processed without guaranteed completion before bidding begins If it is impossible to contact the client through all available communication channels, the bid will not be submitted in order to avoid the risk of purchasing a vehicle without a confirmed translation review. Translation Disclaimer Translation is performed by a translator, not by a technical specialist. Therefore, the translation: - Is not a technical diagnosis - Does not confirm the mechanical condition of the vehicle - Does not interpret the severity of damage - Does not identify causes of defects - Does not determine wear level or repair requirements The translator only conveys the meaning of the inspector’s comments without technical interpretation or evaluation.

Auction sheet corrections are official amendments published by the auction house after the lot is initially listed and before or during the auction process. Corrections may relate to any information contained in the auction sheet, including but not limited to: - Mileage - Auction grade - Accident history - Inspector comments Corrections are published exclusively by the auction house. A.A.N. Japan transmits corrections exactly as received from the auction provider. If a correction affects significant vehicle characteristics (for example: mileage, year, grade, accident history, etc.), A.A.N. Japan may request additional confirmation from the client regarding their intention to continue participating in the auction. If the client cannot be reached through all available communication methods, the bid may be canceled in order to avoid risks associated with disputed purchases.

Auction houses (with some exceptions) provide paid pre-auction inspection services performed on the day of the auction. Clients may request A.A.N. Japan to arrange such inspections no later than: - 3 hours before the auction begins for the relevant lot, and - No later than 16:00 JST on the auction day All expenses related to pre-auction inspections are borne by the client. The cost, scope, and content of the inspection service are determined by the respective auction house or its contractor. If, after receiving the inspection results, A.A.N. Japan is unable to contact the client through all available communication methods, the bid will not be approved in order to avoid the risk of purchasing a vehicle without confirmed inspection approval.

The client bears full responsibility for verifying that the purchased vehicle complies with the import requirements of the destination country, including but not limited to: - Permitted production year for import - Environmental and technical standards, including emissions regulations, construction requirements, and certification - Regulatory and legal restrictions applicable to specific vehicle categories - Customs regulations, import restrictions, and clearance procedures - Sanctions and licensing regimes applicable in the client’s country The client must independently confirm import eligibility before placing a bid. All risks associated with: - Import refusal - Registration refusal - Inability to operate the vehicle in the destination country are borne entirely by the client. This also includes situations where the vehicle fails required inspections or certification procedures in Japan as required by the destination country.

For standard auctions, bids should preferably be submitted no later than 1 hour before the start of bidding for the relevant lot. Bids submitted after this deadline may still be accepted by A.A.N. Japan; however, the company does not guarantee: - Processing of the request - Successful submission of the bid to the auction system - Tender Auction Deadlines Bids for tender auctions are accepted strictly until 13:00 JST on the auction day. Requests submitted after 13:00 JST will not be accepted or processed under any circumstances. A.A.N. Japan bears no responsibility for the inability to submit tender bids after the established deadline. Auction Schedule Changes Auction houses may change auction start times without prior notice. Such changes may affect: - Bid submission - Bid modification - Bid cancellation A.A.N. Japan is not responsible for any consequences caused by: - Auction rescheduling - Accelerated auction start times - Technical or organizational changes made 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 bidding difference, A.A.N. Japan may apply a protective bid increase mechanism. Protective Bid Increase Limits Bids up to JPY 300,000 — protective increase up to JPY 25,000 Bids above JPY 300,000 — protective increase up to JPY 50,000 The protective bid increase is used solely to improve the probability of winning and does not guarantee purchase success. Auction bidding environments are characterized by: - High-speed bid processing - Significant market volatility As a result, minor differences may occur between: - The client’s requested maximum bid, and - The final purchase price A.A.N. Japan is not responsible for minimal bid limit overruns caused by rapid auction dynamics.

A group bid is a mechanism allowing the client to place bids on multiple lots where the purchase of any one of the selected vehicles is acceptable. A.A.N. Japan does not limit: - The number of lots within a group - The number of groups - The number of target purchases within one or multiple groups - Recommended Time Gap To minimize the risk of simultaneously purchasing multiple vehicles, A.A.N. Japan recommends that the difference between auction start times for lots within the same group be at least 30 minutes. Groups with shorter intervals may still be accepted; however, the client assumes all associated risks, including the possibility of purchasing multiple vehicles simultaneously. Restriction Tender auctions cannot be included in group bid structures.

If multiple A.A.N. Japan clients place bids on the same vehicle, priority is given to the client with the higher maximum bid. This rule fully corresponds to the principles of Japanese auctions, where the participant offering the highest bid always receives priority. When multiple internal bids exist for the same lot: - The client with the higher maximum bid limit receives priority - The lower maximum bid is automatically considered secondary - The secondary bid is not applied unless it exceeds the competing client’s bid Clients can be assured that their maximum bid is used to achieve the best possible auction result rather than based on a “first come, first served” principle.

Auction Price The final purchase price of the vehicle at auction. This amount is non-refundable. Auction Fee Service fee charged by the auction house. The amount depends on: - Auction company - Purchase method - Auction category This fee is non-refundable. Consumption Tax (10%) Tax applied to auction services and related operational fees. For export transactions, this tax may later be refunded to the company if the company is registered as a Japanese tax payer. The client does not pay the refundable portion of this tax separately: - The company initially pays the tax - The company independently processes the tax refund afterward - Recycling Fee (リサイクル料) Mandatory recycling fee associated with the vehicle. This fee may be refunded when the vehicle is exported, but it is not refundable if the vehicle is dismantled for parts. The client does not pay the refundable portion separately: - The company independently receives the refund after export procedures are completed - Remaining Road Tax / Shaken Refund (車検残) Refund of the unused portion of the vehicle tax calculated proportionally based on the remaining full months after deregistration of the vehicle. The refund is received by the company after completion of the deregistration procedure. The client does not separately pay this refundable tax amount.

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.A penalty fee is charged to the seller. Unsold (流れ) The reserve price was not reached. Sold Through Negotiation (後商談) A post-auction transaction conducted within a limited period after the auction ends (typically 30–60 minutes). Reverse Negotiation (逆商談) The seller offers the final active bidder the opportunity to purchase the vehicle at their previous bid amount. One Price (一発落札) Fixed-price sale format based on a “first come, first served” principle. Buyer Cancellation (落札者キャンセル) Cancellation may be possible within approximately 30–120 minutes after auction completion. Penalty fees may range from JPY 70,000–85,000 or higher. Seller Cancellation (売主キャンセル) Considered a serious violation by the auction house and subject to seller penalties.

Start Price (スタート価格) The initial price at which bidding begins. Desired Price (希望価格) The seller’s minimum acceptable sale price.This amount remains hidden until the “Urikiri” threshold is reached. An excessively low start price may create suspicion, while an excessively high start price may reduce bidder interest. Recommended Bid Margins for Buyers Reasonable bidding margins above the starting price may include: - Up to ¥50,000 → +¥20,000 - ¥60,000–100,000 → +¥50,000 - ¥110,000–500,000 → +¥100,000 - ¥600,000–900,000 → +¥200,000 - ¥1.0–1.5 million → +¥500,000

Lot withdrawal means the removal of a vehicle from auction participation before completion of bidding for the relevant lot. A lot may be withdrawn by the auction house or seller for various reasons, including but not limited to: - Seller withdrawal request - Discovery of errors, inaccuracies, or inconsistencies in the auction sheet - Technical or organizational issues at the auction house - Seller’s decision to cancel the sale - Other circumstances defined by auction house regulations Authority to Withdraw a Lot The decision to withdraw a lot is made exclusively by: - The auction house, and/or - The seller A.A.N. Japan: - Does not influence this decision - Does not control the reasons for withdrawal - Does not guarantee that a vehicle will remain available until auction completion Consequences of Lot Withdrawal If a lot is withdrawn from auction: - All previously submitted bids for the lot are automatically canceled - The purchase is considered void - The client has no payment obligation for the vehicle - Reserved funds or account exposure related to the lot are released according to A.A.N. Japan internal procedures If a lot is withdrawn after the client’s bid has been submitted but before auction completion, this circumstance does not create grounds for claims against A.A.N. Japan.

General Cancellation Conditions Most Japanese auction houses allow cancellation of a vehicle purchase only within a limited period after completion of bidding for the relevant lot — typically between 30 and 120 minutes. The specific deadlines, conditions, and availability of cancellation are determined exclusively by the auction house rules and may vary depending on: - Auction venue - Lot category - Auction format After the cancellation period established by the auction house expires, cancellation is no longer possible under any circumstances. A.A.N. Japan does not guarantee the ability to submit or process cancellation requests within the permitted timeframe, as the procedure depends on: - Auction house regulations - Operator response times - Internal administrative procedures Lots Not Eligible for Cancellation Certain categories of vehicles may not be eligible for cancellation after purchase. Such lots include, but are not limited to: - Vehicles marked by the auction house as having severe damage or major repairs - Special auction categories where cancellation is explicitly prohibited - Vehicles purchased through the “Negotiation” format (商談), where cancellation is generally not permitted Cancellation rules are established exclusively by the auction house and may differ depending on the specific auction platform. Cancellation Penalties If an erroneous purchase is canceled, the auction house imposes a cancellation penalty fee. Typical penalty amounts are: - Approximately ¥85,000 — for standard vehicles - Approximately ¥150,000 or more — for expensive or special-category vehicles The actual penalty amount depends on the rules of the specific auction house and may vary according to: - Lot type - Auction category - Timing of the cancellation request - Internal auction house regulations The penalty must be paid entirely by the buyer within the deadlines established by the auction house. A.A.N. Japan: - Does not compensate cancellation penalties - Does not participate in penalty negotiations or revisions - Is not responsible for auction house refusal to cancel a transaction Seller’s Right to Cancel a Transaction Under Japanese auction house regulations, the seller may refuse to complete the sale after auction completion in cases permitted by the rules of the specific auction house. Such decisions are made exclusively by the seller. A.A.N. Japan: - Does not control this process - Cannot influence seller cancellation decisions - Transmits auction house decisions and information without modification - Does not participate in negotiations between the seller, auction house, and buyer Deposit and Future Auction Participation If the seller cancels the sale: - Your deposit remains available in your account - The deposit may be used for future auction participation and vehicle purchases - Deposit refunds are processed according to the general terms and conditions of the agreement - Limitation of Liability A.A.N. Japan: - Is not responsible for transaction cancellations initiated by the seller - Does not guarantee completion of a transaction after winning an auction - Does not compensate losses, expenses, or lost profits related to seller cancellation - Is not responsible for decisions made by the auction house or seller regarding the execution or cancellation of a transaction

Re-listing a vehicle at auction may be applied when, after winning an auction, you request cancellation of the purchase but: - Standard cancellation is impossible, or - Cancellation would involve substantial financial penalties Re-listing is not considered cancellation of the original transaction and does not release you from obligations arising from the original purchase. This mechanism is used solely as an alternative method to potentially reduce financial losses. Re-Listing Conditions When a vehicle is re-listed: - The original purchase remains final and cannot be canceled - The vehicle is submitted for resale according to auction house rules - All expenses related to re-listing are borne by you Such expenses include, but are not limited to: - Auction fees - Auction house penalties - Administrative expenses - Resale commissions - Storage and transportation costs - Other mandatory charges established by the auction house Financial Responsibility If the final resale price is lower than the original purchase price, you are obligated to pay: - The difference between the original purchase price and the resale price - All related expenses and fees connected with the re-auction and re-listing process Payment must be made within the deadlines established by A.A.N. Japan or the auction house. Limitation of Liability for Re-Listing A.A.N. Japan: - Does not guarantee successful resale of the vehicle - Does not guarantee any specific resale value - Is not responsible for the financial outcome of the re-listing - Does not compensate losses resulting from vehicle depreciation or resale results - Is not responsible for auction house decisions regarding the conditions or outcome of the resale process

Claims regarding purchased vehicles may only be submitted within the framework of the rules established by the relevant auction house. A.A.N. Japan: - Does not independently determine the validity, content, or acceptance of claims - Acts solely as an intermediary for claim submission and communication Claims are permitted only: - In situations expressly allowed by the auction house rules - Within the deadlines established by the specific auction platform Failure to comply with the established deadlines or claim procedures automatically results in loss of the right to claim review. Claims are submitted exclusively at your initiative through the personal dashboard after submission of the corresponding request. A.A.N. Japan: - Does not initiate claims independently - Does not decide whether claims should be submitted without your direct request

Standard claim submission periods may vary depending on the auction house; however, typical deadlines are as follows: - Exterior or interior discrepancies — on the day of the auction - Errors in registration data or specifications — within 7 calendar days - Accident or structural damage claims — within 10 calendar days - Engine or transmission defects — within 15 calendar days Final deadlines and claim procedures are determined exclusively by the rules of the relevant auction house.

Lots Without Claim Eligibility Claims are not accepted for lots belonging to special “no claim” sale categories, including but not limited to: - Accident - Low Price - White Corner - Special discounted categories - Other “as-is” sale categories Lot classification is determined exclusively by the auction house and is not subject to revision. Vehicle Age and Mileage Restrictions For vehicles exceeding thresholds established by the auction house (commonly: - More than 10 years old, and/or - Mileage exceeding 150,000 km), claims relating to major components and transaction cancellation may be: - Restricted, or - Subject to special compensation conditions Defects Disclosed in Auction Documentation Claims are not accepted for defects or conditions that: - Are stated in the auction sheet - Are included in auction sheet corrections - Appear in inspector comments - Are visually obvious during inspection - Logically follow from the described vehicle condition Engine, Transmission, Hybrid, and Electric Systems If the auction sheet contains information regarding symptoms or defects related to: - Engine - Transmission - Hybrid systems - Electric systems claims regarding these components may be excluded or reviewed only in exceptional circumstances at the discretion of the auction house. Modifications and Repairs Claims are not accepted if the vehicle: - Has been modified or tuned - Contains non-standard equipment - Shows evidence of non-factory repairs or structural modifications - Was purchased through special sales formats or negotiation procedures Export and Change of Vehicle Status Claims are not accepted if the vehicle: - Has been exported outside Japan - Has completed customs clearance - Has been transferred to third parties - Has undergone actions preventing objective inspection by the auction house Repeated Claims Repeated claims based on the same issue may be restricted or rejected except in certain critical cases, unless otherwise permitted by auction house regulations. Compensation Limitations Even when a claim is accepted, the auction house may: - Limit the maximum compensation amount - Restrict the reduction in vehicle value - Allocate transportation costs, fees, and cancellation expenses between the parties involved

All vehicles are purchased on an “as-is” basis unless otherwise expressly provided by the rules of the relevant auction house. A.A.N. Japan: - Does not expand the scope of permissible claims - Does not alter claim review procedures - Is not responsible for auction house refusal to accept or satisfy a claim The decision of the auction house regarding any claim is final and binding upon all parties.

Auction sheets, photographs, video materials, lot descriptions, and other data received from auction houses are provided solely for the purpose of reviewing vehicles and participating in auctions. All rights to such materials belong to: - The respective auction houses - Copyright holders - Other authorized parties Restrictions on Use The client is prohibited from: - Copying, storing, archiving, or reproducing auction sheets, photographs, video materials, or any parts thereof - Publishing, distributing, or posting such materials on the Internet, social networks, messengers, advertising platforms, or other public sources - Using materials for marketing, commercial, advertising, or public purposes - Transferring auction data to third parties outside the scope of internal decision-making regarding vehicle purchases - Modifying, adapting, or creating derivative works based on auction content - Using auction materials to create independent databases, catalogs, services, or analytical systems - Auction Vehicles or Stock Vehicles - Stock Vehicles - Limited selection - Fixed pricing - More photographs available - Faster processing and documentation - Generally higher prices - Auction Vehicles - Large vehicle selection - Pricing closer to dealer market prices - Lower purchase cost - Fewer photographs available - Longer document processing time

Some auction houses establish: - Outstanding debt limits, or - Maximum unpaid purchase amounts for participating companies If the total value of purchased vehicles exceeds the established limit, removal of additional vehicles is prohibited until payment is received. After outstanding balances are settled, the auction house reopens vehicle release authorization. Other auction houses do not apply such limits and allow vehicle removal until the final payment deadline. Certain auction houses release vehicles only after full payment confirmation, regardless of: - Purchase volume - Company credit limits

For regions separated by water, including: - Hokkaido - Shikoku - Kyushu - Okinawa combined logistics methods are used, including: - Ground transportation to the ferry terminal - Ferry transportation - Unloading and delivery to the final warehouse or destination Transportation costs are higher due to multiple logistics stages, and delivery times are longer depending 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: - Is not responsible for the inability to use ferry transportation - Does not compensate costs arising from vehicle non-compliance with ferry transport requirements

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

To qualify for ferry transportation, the vehicle must meet the following minimum requirements: - Ground clearance of at least 15 cm - Hood must open normally Vehicle must be operational: - Engine starts - Transmission functions properly - Vehicle is capable of self-propelled movement Steering and tires: - Wheels must turn properly - Tires must be functional, maintain air pressure, and allow movement - Brake system: Service brake and parking brake must function properly - Vehicle must be able to enter and exit the ferry independently without: Towing; Winches; Cranes; Other auxiliary equipment - Glass condition: Windshield must be intact; Side and rear windows must be installed and properly closable - Interior condition: Cabin, trunk, and roof storage areas must be completely empty; No personal belongings, spare parts, or additional cargo are permitted

Ferry transportation is prohibited if any of the following conditions exist: - Engine does not start or the vehicle cannot move independently - Presence of white or black smoke from the engine, exhaust system, or other components - Oil, fuel, coolant, or other fluid leaks - Damaged, defective, or unstable hybrid or electric batteries - Missing windshield or damaged/missing/improperly secured side or rear windows - Presence of any foreign objects or cargo inside the cabin, trunk, or vehicle body

The export of a vehicle from Japan begins not with shipment to the port, but with the legal deregistration of the vehicle within Japan. Only after completion of the deregistration procedure (抹消登録 / Massho Toroku) can the vehicle obtain export status and be officially exported outside Japan. The deregistration process means that the vehicle is removed from the Japanese road registration system. After this procedure, the vehicle is officially no longer permitted for operation on Japanese roads. Types of Deregistration in Japan Several types of vehicle deregistration exist in Japan. They are used for the following purposes: - 一時抹消登録 / Ichiji Massho Toroku — temporary suspension of vehicle operation. - 永久抹消登録 / Eikyu Massho Toroku — permanent deregistration for vehicle disposal or scrapping. - 輸出抹消仮登録 / Yushitsu Massho Toroku — temporary export deregistration for international vehicle export. After deregistration, the vehicle is officially considered no longer intended for operation on Japanese roads. Deregistration Procedure The deregistration procedure is conducted through Japanese transportation authorities: - 陸運局 (Rikuunkyoku) — Land Transport Office - 運輸支局 (Unyu Shikyoku) — Transport Branch Office / Transportation Bureau Branch Office The procedure includes recording the deregistration in the national vehicle registration system. After completion: - The vehicle receives deregistered status - Registration documents are canceled or replaced with export or disposal documentation Documents Required for Deregistration The following documents are required: - 車検証 / Shakensho — vehicle registration certificate (Japanese vehicle title document). This document contains: - Chassis number - Owner information - Engine displacement - Registration number - Technical specifications - Owner Identification Documents For companies: - Corporate registration documents are required - 印鑑証明書 / Inkan Shoumeisho — seal registration certificate or power of attorney from the owner. - Deregistration Application Form Official application for vehicle deregistration. Parking Registration Cancellation If the vehicle was registered with a parking certificate, cancellation confirmation may sometimes be required. License Plates Both front and rear license plates must be surrendered.

After deregistration, an Export Certificate is issued. This is the primary export document for vehicles exported from Japan. The Export Certificate confirms: - Legal ownership - Vehicle deregistration - Authorization for international export The certificate is issued by the local Japanese transport authority: 陸運局 / Rikuunkyoku— Land Transport Office under the supervision of: MLIT — Ministry of Land, Infrastructure, Transport and Tourism of Japan. Documents Required for Export Certificate Issuance The following documents are required: - Deregistration certificate - Vehicle registration number - Company documents - Export application Information Contained in the Export Certificate The Export Certificate includes: - Vehicle make and model - Chassis number (or VIN for U.S. and European vehicles) - Date of first vehicle registration - Owner information - Deregistration date - Export authorization confirmation After issuance of the Export Certificate, shipping documentation is prepared.

For ocean export transportation, Incoterms 2020 rules are applied under the following terms: - FOB - CFR - CIF Allocation of Expenses FOB The seller: - Completes export customs clearance - Delivers the cargo onboard the vessel at the Japanese port of departure The buyer pays ocean freight. CFR The seller pays ocean freight to the destination port. Cargo insurance is paid by the buyer. CIF The seller pays: - Ocean freight - Marine cargo insurance to the destination port.

Shipping lines may apply the following freight payment conditions: - Freight Prepaid Freight is paid by the shipper before shipment. Freight Collect Freight is paid by the consignee at the destination port.

Ro-Ro (Roll-on / Roll-off) Used for transporting self-propelled vehicles that are driven onto the vessel and unloaded in the same manner. 20FT Containers Standard 20-foot shipping containers. 40FT HC Containers (High Cube) 40-foot High Cube containers with increased internal height and cargo capacity.

Ro-Ro vessels are specialized car carriers onto which vehicles are driven under their own power. Vehicles are secured onboard using specialized lashing straps and securing systems. Advantages of Ro-Ro Shipping The primary advantage of Ro-Ro vessels is the ability to economically transport even a single vehicle. In many cases, transportation costs are lower than container shipping, making this method suitable for clients seeking to reduce logistics expenses. Limitations of Ro-Ro Shipping The vehicle must: - Be operational - Be capable of self-propelled movement - Be in technically functional condition

Car Price (Sharyo Daikin 車両代金) Final auction purchase price (“button price”). Auction Fee (Rakusatsu Ryokin 落札料金) Auction service fee depending on: - Auction group - Purchase method - Auction section - Transportation from Auction to Yard (Rikuso Ryokin 陸送料金) Transportation from the auction facility to: - Exporter yard, or - Port storage area - Car Inspection (Kensa 検査) Inspection services required only for specific destinations. May be ordered directly or through a broker. Shipping Charges (Funazumi Ryokin 船積み料金) Shipping-related service package typically including: - Storage at Shipping Yard Usually includes a free storage period of approximately 30 days followed by storage charges. Photo Reports Basic photographs included, with additional photo reports available upon request. Radiation Inspection (Hoshasen Kensa 放射能検査) Radiation inspection typically requiring levels below 0.3 μSv/h. Customs Clearance and Brokerage Services (Zeikan Tesūryō 税関手数料) Export customs processing through licensed customs brokers resulting in: - ED (Export Declaration) - Loading and Stevedoring Charges (Tsumikomi Ryōkin 積込み料金) Includes loading operations and cargo handling equipment. Securing Materials (Kakewari 掛割) Cargo securing materials and consumables. Lashing Charges (Kotei Ryōkin 固定料金) Vehicle lashing and securing services.May be included in loading charges or invoiced separately. Freight (Kaijō Unchin 海上運賃) Ocean freight charges from the loading port to the destination port. Courier Charges (Takuhai Ryōkin 宅配料金) Courier delivery of original documents including: - Bill of Lading (B/L) - Export Certificate - Commercial Invoice - Packing List Documents may be provided through: - DHL - FedEx - EMS - Agent Commission (Toriatsukai Tesūryō 取扱手数料) Agent commission for: - Auction representation - Transaction management and support

Ro-Ro freight is calculated based on the vehicle’s cubic volume (m³) according to the shipping line tariff. Additional surcharges are applied to the base Ocean Freight (OF) rate depending on: - Fuel prices - Currency fluctuations - Route conditions - Market situation Rates are generally quoted in U.S. Dollars (USD) and remain valid only for the specified quotation period. Example of Calculation Toyota Estima Hybrid AHR20W Dimensions: - Length: 4.820 m - Width: 1.810 m - Height: 1.760 m Calculation: - 4.820 × 1.810 × 1.760 = 15.4 m³ Freight Calculation Formula Base Freight Rate × Vehicle Volume (m³) + Applicable Surcharges Common Ro-Ro Freight Surcharges Code Full Name Description BAF Bunker Adjustment Factor Fuel surcharge compensating for fluctuations in marine fuel (bunker) prices. Usually revised monthly or quarterly. CAF Currency Adjustment Factor Currency adjustment stabilizing exchange rate fluctuations (JPY / USD / EUR). WRS War Risk Surcharge Additional fee for vessels passing through areas with elevated military or piracy risks. PSS Peak Season Surcharge Seasonal surcharge applied during periods of high transportation demand (commonly spring and autumn). PCS Port Congestion Surcharge Additional charge for congested ports where loading or unloading delays occur due to terminal overload. EBS Emergency Bunker Surcharge Emergency fuel surcharge introduced during sharp oil price fluctuations or fuel market crises. LSS Low Sulphur Surcharge Surcharge for the use of low-sulphur fuel in compliance with IMO 2020 environmental regulations. Before booking, clients should confirm current freight quotations, as rates may vary depending on: - - Seasonal demand - - Fuel index changes - - Shipping routes - - Market conditions

Ro-Ro bookings are confirmed in advance through the shipping line or freight forwarder. Each vessel operates according to a fixed schedule window and has specific cut-off deadlines for: - Vehicle delivery to port - Document submission - Customs clearance Failure to meet these deadlines may result in: - Shipment rollover to the next vessel - Additional storage charges Booking Process A booking request is submitted with the following information: - Vehicle type - Chassis number / VIN - Vehicle volume in m³ - Destination port - Preferred sailing week or specific vessel - Preferred shipping line Booking confirmation is usually received within 1–2 business days. Vessel Confirmation After confirmation, the following details are issued: - Booking number - Vessel name - Voyage number - ETD (Estimated Time of Departure) - ETA (Estimated Time of Arrival) ETD and ETA may be adjusted due to: - Weather conditions - Port congestion - Operational changes Typical Cut-Off Deadlines Relative to ETD Yard Cut-Off — 3–5 Days Before ETD Final deadline for delivering the vehicle to the port or shipping yard. The vehicle must: - Be clean - Be deregistered - Be fully ready for loading - Shipping Instruction (SI) Cut-Off — 2–3 Days Before ETD Final deadline for submission of: - Bill of Lading data - Consignee information - Shipping instructions - Customs Clearance Cut-Off — 1–2 Days Before ETD Export Declaration (ED) must be submitted into the NACCS customs system. Documentation Cut-Off — Upon Completion of Documentation All required documents must be uploaded, including: - Commercial Invoice - Packing List - Radiation inspection documents - Deregistration/export documents Cargo Readiness Requirements The vehicle must meet the following conditions: - Battery charged - Minimal fuel level - No auction stickers or markings remaining on the vehicle Delays or missing documentation may result in: - Roll-over (transfer to the next vessel) - Paid storage charges Result of the Booking Process After booking and document processing are completed: - The vehicle is accepted into the port yard - After vessel departure, loading confirmation is issued - A Draft Bill of Lading (Draft B/L) is provided for verification The booking process is considered completed after: - Actual vessel loading - Issuance of original shipping documents Failure to meet deadlines may result in: - Shipment postponement - Re-booking fees - Additional port charges

The selection of the loading port depends on: - Auction source - Vehicle location - Shipping line availability - Destination country - Yokohama Japan’s largest Ro-Ro export hub with excellent infrastructure, though storage space is relatively limited. Nagoya Serves the central region of Japan and is frequently used for exporting Toyota vehicles. Kobe Handles mixed cargo and used vehicle exports and is convenient for the Kansai region. Osaka Alternative to Kobe with flexible schedules suitable for smaller shipment volumes. Hakata Convenient for vehicles originating from the Kyushu region.

Certain countries require pre-export inspections to confirm compliance with import and safety regulations. These inspections are conducted in Japan by authorized inspection agencies, most commonly at the loading port. Examples of Inspection Agencies and Destinations Agency Destination Countries 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 VCA Malta

Container shipping is used for: - Non-operational vehicles - Vehicles with non-standard dimensions - Combined shipments of engines and spare parts Unlike Ro-Ro shipping, container transportation allows: - Flexible shipment planning - Consolidation of different cargo categories - Reduced cost per cubic meter for wholesale shipments Shipments are loaded at the exporter’s facility using: - 20FT containers - 40FT containers - 40HQ (High Cube) containers Typically, one 40-foot ocean container can accommodate approximately three to four passenger vehicles. Advantages of Container Shipping The primary advantage of container transportation is enhanced cargo security. Vehicles are securely fastened inside the container, and after the container is sealed in Japan, no third party can access the vehicle until the container is opened in the destination country, providing protection against theft and unauthorized access. Disadvantages of Container Shipping Container shipping is generally more expensive than Ro-Ro transportation. To load a container: - All vehicles must be transported to a single loading location - This increases inland transportation costs

Vehicle-Related Costs Car Price (Sharyo Daikin 車両代金) Auction purchase price of the vehicle or spare parts cost for stock purchases. Auction Fee (Rakusatsu Ryokin 落札料金) Auction fee.Not charged for stock yard purchases. Transportation from Auction to Our Yard (Rikuso Ryokin 陸送料金) Transportation from the auction house to our yard.Not charged for stock purchases. Packing (Banningu Ryokin バンニング料金) Container loading operations including: - Vehicle or cargo positioning - Securing - Stability management - Dismantling (Kaitai Ryokin 解体料金) Vehicle dismantling charges when shipping parts or dismantled vehicle sets. Commission (Toriatsukai Tesūryō 取扱手数料) Agent commission for: - Auction representation - Administrative transaction management Container-Related Costs Drayage Fee (Torakku Unchin トラック運賃) Transportation of the container: - CY → our facility → CY(Container Yard transport) - Seal Fee (シール料金) Installation of a customs seal with a unique seal number for inclusion in the Bill of Lading (B/L). Customs Export Tax / Customs Processing Fee (Zeikan Shukkazei 税関輸出税) Administrative customs processing fees for Export Declaration (ED) submission through NACCS. Generally, there is no standard export tax on used vehicles. Broker Service Fee (サービス料金) Fee charged by a licensed customs broker for: - Customs filing - Terminal booking - Coordination with the shipping line - Weight Cost / VGM Fee (総重量確認料) Verification of container gross weight in accordance with SOLAS regulations and submission of VGM data to the shipping line. THC — Terminal Handling Charge Terminal handling charges at the port of loading, including: - Container lifting - Stacking - Gate handling - Internal terminal transportation May be charged: - By the shipping line within the freight invoice, or - Separately - Freight (Kaijō Unchin 海上運賃) Ocean freight charges from the Japanese port to the destination port. Courier (Takuhai Ryōkin 宅配料金) International courier delivery of original shipping documents with tracking information.

The following charges are typically included in container freight: - Base ocean freight - BAF (Bunker Adjustment Factor) - Equipment usage and management charges - THC (Terminal Handling Charges) at ports - Possible inspection fees at the destination port - CAF (Currency Adjustment Factor) - Tax-related status adjustments Charges That May Be Applied Separately The following charges may be invoiced separately: - Documentation Fee (DOC) - ISPS Security Charge(International Ship and Port Facility Security surcharge) - Peak Season Surcharge (PSS) - Congestion or emergency surcharges - Container detention, demurrage, and storage charges - Local terminal and agency fees

Each shipping line and terminal establishes its own operational deadlines. Failure to meet any deadline may result in: - Shipment rollover to the next vessel - Additional operational expenses Standard Container Cut-Off Deadlines CY Cut-Off — 3–5 Days Before ETD Final deadline for delivery of: - Fully loaded - Sealed - Properly marked container to the Container Yard (CY). VGM Cut-Off — 2–3 Days Before ETD Final deadline for submission of: - Verified Gross Mass (VGM) in accordance with SOLAS regulations. SI Cut-Off — 2–3 Days Before ETD Submission deadline for: - Bill of Lading (B/L) data - Shipping Instructions (SI) to the shipping carrier. Customs Clearance Cut-Off — 1–2 Days Before ETD Deadline for: Submission and acceptance of Export Declaration (ED)through the NACCS customs system. Documentation Cut-Off — Upon Completion of Documentation All required documents must be uploaded before the carrier documentation window closes. Container Compliance Requirements The container must fully correspond to the booking information regarding: - Weight - Dimensions - Cargo contents Any discrepancies or delays may result in: - Roll-over to the next vessel - Re-booking charges - Paid storage fees Booking Completion Result After successful booking: - The container is accepted into the Container Yard (CY) - The shipping line confirms acceptance - Vessel loading is scheduled After vessel departure: - Loading confirmation is issued - Draft Bill of Lading (Draft B/L) becomes available The shipment process is considered finalized after: - Actual container loading onto the vessel - Issuance of the original Bill of Lading

Marine insurance protects vehicles, containers, and cargo against loss or damage during ocean transportation. Coverage applies from the moment the cargo is handed over to the freight forwarder in Japan until unloading at the destination port. Marine insurance is recommended for all shipments. Types of Coverage All Risks Coverage Covers nearly all external risks except for specifically stated exclusions. Usually issued under: - Institute Cargo Clauses (A) - Total Loss Only (TLO) Covers only complete loss or total destruction of the cargo. Usually issued under: - Institute Cargo Clauses (C) Insurance Policy Basis Insurance value is typically calculated as: - (Cargo Value + Freight Cost) × 110% Additional details: - Currency is usually USD - Coverage period begins upon cargo acceptance in Japan - Coverage ends upon unloading at the destination port Example of Insurance Calculation Cargo Value: USD 8,000 Freight Cost: USD 1,000 Insurance Amount: - (8,000 + 1,000) × 110% = USD 9,900 - Insurance Rate:0.6% - Insurance Premium:USD 59.40 Documents Required for Insurance Issuance The following information is required: - Exporter and consignee details - Cargo description - Port of departure and destination port - Declared cargo value - Type of insurance coverage - Copies of commercial shipping documents Insurance Certificate The Marine Insurance Certificate contains: - Policy number and issue date - Vessel name and voyage number - Coverage scope and insured amount - Insurer signature - Applicable insurance clauses The certificate forms part of the export documentation package. Claim Procedure In case of loss or damage: - The insurer must be notified within 3 calendar days - Evidence and documentation must be preserved - Claim documentation package must be submitted - Inspection by a surveyor may be required - Compensation is paid according to the policy terms

Every export shipment requires a documentation package in accordance with: - Japanese legislation - International maritime practice These documents ensure: - Legality of the transaction - Customs clearance compliance Standard Document Flow Proforma Invoice Preliminary invoice issued before payment confirmation. Commercial Invoice Official commercial sales invoice. Packing List Detailed cargo and packaging information. Shipping Instruction (SI) Shipping instructions submitted to the carrier. Export Declaration (ED) Export declaration submitted through: - NACCS — Nippon Automated Cargo and Port Consolidated System - (Japanese electronic customs system) - Bill of Lading (B/L) Official ocean transport document issued by the shipping carrier. Certificate of Marine Insurance Issued when marine insurance coverage is arranged. Supporting Certificates May include: - Deregistration/export certificates - Radiation inspection certificates - Export inspection certificates

Bill of Lading (B/L) The Bill of Lading is: - A receipt confirming cargo acceptance - A transportation contract - A document representing title to the cargo - Types of Bills of Lading - Original Bill of Lading (Original B/L) Traditional negotiable document, usually issued in three original copies. Surrendered Bill of Lading / Telex Release Cargo release without presentation of original B/L documents after surrender of originals at the port of departure and full payment before shipment. Sea Waybill Non-negotiable electronic transport document without transfer of ownership rights. Straight Bill of Lading (Straight B/L) Issued to a specific consignee and not transferable. Switch Bill of Lading (Switch B/L) Reissuance of a second set of Bills of Lading upon written request from the original holder with cancellation of the first set. House Bill of Lading and Master Bill of Lading (House B/L and Master B/L) Issued respectively by: - Freight forwarder (NVOCC — Non-Vessel Operating Common Carrier) - Ocean carrier/shipping line within the same shipment transaction. Export Declaration (ED) Electronic customs declaration submitted through the NACCS system by a licensed customs broker. The Export Declaration confirms: - Legality of export - Completion of required export customs procedures Commercial Invoice and Packing List The Commercial Invoice and Packing List must fully correspond to: - Shipping Instruction (SI) - Bill of Lading (B/L) - For Ro-Ro Shipments Documents must include: - Chassis number - Vehicle make - Vehicle model - For Container Shipments All cargo items must be listed including: - Quantity - Weight - Packaging details Export Certificate (EC) Official MLIT (Ministry of Land, Infrastructure, Transport and Tourism of Japan) document confirming vehicle deregistration in Japan. Export of the vehicle is impossible without this document. Inspection and Radiation Certificates Inspection certificates and Radiation Inspection Certificates must be uploaded before the documentation cut-off deadline.

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) - Bill of Lading (B/L) must be corrected before vessel departure. Original documents are released: - After full payment, or - According to the applicable contractual agreement Status After finalization of the export documentation: - The exporter receives legal confirmation of completed export procedures - The consignee receives the complete import documentation package - Export Declaration (ED) and Bill of Lading (B/L) are stored in the permanent archive of A.A.N. Japan

Any modifications after booking confirmation and document issuance are processed according to: - Shipping line procedures - Customs regulations Unauthorized or uncoordinated amendments may result in: - Delays - Additional charges - Shipment roll-over Booking Amendments The following information may be amended: - Destination port - Consignee details - Vessel schedule - Chassis numbers - Container numbers - Cargo description - Freight payment terms Requests must be submitted in writing before the Shipping Instruction (SI) cut-off deadline. Additional amendment fees may apply. If the Export Declaration (ED) has already been submitted, the customs broker must process amendments through the NACCS customs system. Roll-Over Roll-over refers to postponement of shipment to the next vessel due to: - Missed cut-off deadlines - Missing documentation - Re-booking issues - Weather conditions - Port congestion Additional: - Roll-over fees - Storage charges may apply. Cancellation Procedure Cancellation requests must be submitted in writing and include: - Booking number - Reason for cancellation After vessel closing, partial charges or cancellation penalties may apply. Bill of Lading Amendments After vessel departure, amendments to the Bill of Lading are processed only upon: - Official written request - Submission of original Bills of Lading - Precise wording of the requested correction Additional amendment fees apply. For printed original Bills of Lading, surrender of originals is required before amendment issuance. Customs Amendments Corrections to the Export Declaration are processed through the customs broker and may require: - Declaration cancellation - Re-submission - Full alignment of all shipping documents System Updates and Financial Records Updated shipment information is reflected in the client dashboard. New document versions are archived. All: - Additional charges - Refunds - Financial adjustments are recorded in the shipment financial accounting records.

Ro-Ro Shipping Lines NYK Line Regular services to: - Middle East - Africa - Southeast Asia - Central and South America - MOL Frequent sailings to: - Middle East - Africa - Oceania - K Line Services to: - Middle East - East Africa - Central America - Eukor Car Carriers - Joint venture between: Hyundai Glovis ,MOL and Wallenius Wilhelmsen Routes include: - Korea - Europe - Africa - Persian Gulf - Hyundai Glovis Feeder services between: - Japan and Korea with transshipment connections to: - Persian Gulf - Africa - Hoegh Autoliners Global services to: - Middle East - Africa - Europe - Americas - Wallenius Wilhelmsen Services to: - North America - Europe - Oceania - Specialized in: Passenger vehicles and Commercial vehicles Container Shipping Lines ONE (Ocean Network Express) Joint venture объединение of: NYK, MOL and K Line Provides global container coverage. MSC Main routes: - Europe - Mediterranean - Africa - South America - CMA CGM Routes to: - Middle East - Africa - Europe - Hapag-Lloyd Services covering: - North America - Europe - Latin America - Maersk Global network including: - North America - Asia - Middle East - Evergreen Main regions: - Southeast Asia - USA - Mediterranean - HMM Routes: - Japan–Korea - Middle East - South America - Yang Ming Services to: - Asia - Europe - Middle East - PIL Routes covering: - Southeast Asia - Africa - Indian Ocean region

After shipment completion, the next stage is customs clearance and vehicle registration in the destination country. This procedure is required for the overseas buyer receiving the vehicle. Import rules, required documentation, and costs vary depending on the importing country. For example: The United States applies the “25-Year Rule,” allowing import only of vehicles older than 25 years. Required Documents and Customs Clearance Imports are generally declared through local customs authorities using a documentation package. Depending on the country, required documents may include: - Commercial Invoice - Bill of Lading (or copy) - Export Certificate(some countries require translation) - Inspection Certificate During customs clearance: - Import duties - VAT or other taxes may be charged. Vehicle Registration After Import After customs clearance and vehicle release, the vehicle must undergo registration procedures in the destination country before legal road use. This generally includes: - License plate issuance - Local registration procedures Depending on the importing country, the vehicle may also require: - Safety inspections - Emissions testing - Lighting compliance checks - Speedometer unit conversion checks Vehicle Release at Destination Port Imported vehicles are generally released within the customs-controlled area of the destination port. After completion of local customs formalities, the importer receives the vehicle from this location.

There are two common methods for receiving the vehicle: - Self-Pickup from the Port The importer independently, or through a local customs broker: - Completes customs procedures - Collects the vehicle from the temporary storage facility After arrival at the port, a free storage period (“free time”) is usually provided. After expiration of free time: - Daily storage charges apply The importer should: - Track the vehicle location - Complete customs clearance promptly - Collect the vehicle as soon as notification is received If planning to drive the vehicle directly from the port: - Temporary license plates may be required - Tow truck transportation may be necessary Door-to-Door Delivery (D2D) Some carriers provide “Door-to-Door” delivery services, where the vehicle is delivered from the import port directly to the specified address. This service generally involves: - Vehicle release at the port - Delivery via local car carrier transportation - In international trade terms, this corresponds to: DAP, DAT and DDP rather than: CFR and CIF DAP — Delivered at Place The seller: - Pays transportation to the agreed destination - Bears risks until cargo arrival The buyer: - Pays import duties - Pays taxes - Handles unloading DAT — Delivered at Terminal The seller: - Delivers cargo to the terminal - Pays transportation costs - Handles unloading at the terminal The buyer: - Handles import customs clearance - Arranges onward transportation DDP — Delivered Duty Paid The seller: - Pays transportation costs - Handles export procedures - Handles import procedures - Pays duties and taxes - Completes customs clearance The buyer simply receives the goods.

In some vehicle-importing countries, so-called Bonded Warehouses are commonly used. A Bonded Warehouse is a temporary storage facility operating under customs authority supervision where imported or export cargo may be stored without immediate payment of customs duties and taxes. Such warehouses are used in: - International trade - Logistics operations - Export and import activities for temporary storage of cargo until: - Export - Customs clearance - Sale of goods Advantages of a Bonded Warehouse A Bonded Warehouse allows: - Deferral of import duty and tax payments, or - Full exemption from duties in the case of re-export This system is commonly used to optimize: - Cash flow - Customs procedures - International cargo distribution operations

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. Status and Result 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(for example: 1JZ, 2GR, SR, K20) - The numbers indicate engine displacement in deciliters or liters For 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 Engine family: - Inline 6-cylinder - 2.5L displacement - G Performance-oriented cylinder head with dual overhead camshaft configuration (Twin Cam). T Turbocharged engine. E Electronic fuel injection.

Code Meaning Example G Performance version, wide-angle cylinder head (Twin Cam) 1JZ-GE F Economy-oriented version, narrow-angle cylinder head 1NZ-FE T Turbocharged SR20DET E Electronic / multi-point fuel injection 3S-GE S Direct injection (Toyota D-4S) 2GR-FSE V / VV / VVT Variable valve timing system 1NZ-FE (VVT-i) D Diesel engine 2KD-FTV L Longitudinal layout / increased displacement 1HZ-L Example of a Combined Engine Code SR20DET SR Engine family 20 2.0L engine displacement D DOHC (Dual Overhead Camshaft) 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 to us. Incomplete or incorrect information may result in: - Compatibility issues - Incorrect engine selection - Shipment delays Please provide the following information with your request: - Parameter - Example - Purpose - Chassis Number - DBA-NHW20 - Determines generation, engine type, drivetrain, and environmental standard - Engine Model - 1NZ-FE / 2KD-FTV / 1JZ-GTE - Ensures exact compatibility of construction and systems - Vehicle Make and Model - Toyota Corolla Fielder / Honda Stepwgn / Nissan Serena - Identifies vehicle platform - Production Year - 2008 - Clarifies generation and specifications - Fuel Type and Transmission - Gasoline / Automatic Transmission - Affects ECU compatibility and mounting configuration - Drivetrain Type - 2WD / 4WD / AWD - Determines oil pan and mounting configuration - Required Configuration - Full / Basic / Engine Set (with transmission, ECU, and harness) - Defines supplied components Types of Engine 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; Wiring harness Status and Result 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: - Scrap Yards (Recycling Facilities)Facilities where end-of-life vehicles are dismantled for scrap metal recovery and reusable parts extraction. - Parts Shopping (On-Site Purchasing)Visiting dismantling yards directly to inspect and purchase parts on location. - Customer-Order DismantlingDismantling 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 - What 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 dayto - Large industrial complexes dismantling 200–300 vehicles daily Large facilities are often part of broader industrial groups involved in: - Metal processing - Press and shredder operations - Logistics Smaller companies typically specialize only in vehicle dismantling operations. 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 Despite the large number of recycling facilities, direct access for foreign buyers is highly restricted. Main Reasons Operational Efficiency Facilities operate on continuous industrial schedules and generally do not accept outside visitors. Domestic Market Focus Most companies: - Do not specialize in exports - Do not employ English-speaking staff - Volume Requirements The domestic wholesale market is already occupied by established local buyers. Small overseas orders, such as: - 1–2 containers per month are generally considered commercially unattractive.

Foreign buyers typically work through several indirect access channels: 1. Through an Export Partner (“Scrap Access”) A Japanese export company signs an agreement with the recycling facility, provides access to the foreign buyer, supervises operations, and organizes export shipments. Such access is commonly provided: - For a commission fee, or - Subject to a minimum monthly purchasing volume 2. Through Bilingual Yard Staff Some recycling facilities — particularly in: - Sapporo - Hamamatsu - Toyama - Okinawa - Hakata employ English-speaking staff who communicate with overseas buyers. 3. Through Permanent Presence in Japan Some overseas companies establish their own offices in Japan and work directly with licensed dismantling facilities, independently collecting and purchasing parts.

Recycling facilities generally do not perform: - Dismantling - Cleaning - Packaging for export customers. These operations are usually carried out by the buyers or their teams under the supervision of yard personnel. A fixed dismantling/removal fee applies to each part, such as: - Engines - Transmissions - Doors - Other major components Country-Based Team Restrictions To avoid conflicts between buyers, facilities commonly allow only one foreign team from each country to operate at a single yard. For example: - One team from Kazakhstan - One team from Kenya etc. Characteristics of Scrap Yard Parts Parts sourced from scrap yards are significantly cheaper, but they usually come from: - Older vehiclesrather than - Relatively newer auction vehicles Independent Access In theory, a buyer may independently negotiate access with a dismantling facility through a Japanese intermediary. In practice, this 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 the buyer personally visiting Japanese dismantling yards and purchasing only the required parts. Typically: - A truck is rented - The buyer visits multiple dismantling facilities - Prices are negotiated directly on-site Advantages Payment only for the required parts No excess inventory accumulation Ability to inspect part quality before payment Disadvantages Requires organization of: Visa; Accommodation; Transportation A warehouse or storage yard must be rented to consolidate purchased parts Customs export procedures can only be handled by a licensed Japanese exporter Some dismantling facilities may refuse cooperation if there is no proof of legal export operations or legitimate business activity, in order to avoid compliance risks during inspections Typical Process 1. Arrival in Japan The buyer arrives in Japan and arranges transportation. 2. Visiting Dismantling Yards The buyer visits dismantling facilities and selects parts. 3. Price Negotiation Prices are negotiated directly with the dismantling yard. 4. Export Arrangement A licensed exporter is hired to handle export documentation and shipment procedures. Suitability This method is suitable for: - Small purchasing volumes However, it requires: - Significant time - Organizational effort - Additional expenses especially without a permanent export partner in Japan.

This method involves purchasing and dismantling specific vehicles according to the customer’s technical requirements. The process begins with purchasing a vehicle at auction, after which the vehicle is dismantled based on pre-agreed specifications. Advantages Ability to select a specific vehicle from Japanese auctions Better control over: - Engine type - Grade - Mileage - Equipment level - Condition Disadvantages Remaining Parts Inventory Unsold components and body parts may remain after dismantling. Longer Processing Time Additional time is required for: - Vehicle purchase - Deregistration procedures - Dismantling operations - Higher Cost The total cost includes: - Auction fees - Domestic transportation within Japan - 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.