ITOCHU Corporation has signed a strategic business alliance with Smart Technologies & Resources Inc. to support Japan’s upcoming shift to a new duty-free refund model and expand digital infrastructure for inbound retail operations.
The agreement was announced on 30 January 2026 and focuses on system deployment, store onboarding and operational support ahead of Japan’s planned duty-free framework change in 2026.
Japan is preparing to move from its current “tax exemption at purchase” approach to a refund-based duty-free model, where travellers pay the tax-inclusive price in-store and receive a consumption tax refund after customs clearance at departure.
This regulatory shift is expected to significantly change checkout workflows and compliance processes for duty-free retailers across airports, urban shopping districts and travel retail hubs.
Smart Technologies develops AI-enabled systems designed to automate passport data capture, transaction verification and electronic reporting to Japan’s National Tax Agency. Its core platforms include SmartDetax, which supports in-store duty-free processing, and JPrefund, which manages tax refund settlement for eligible shoppers.
Under the partnership, ITOCHU will work with Smart Technologies to expand the network of participating duty-free retailers and support store operations through Bell System24, its business process outsourcing subsidiary.
The collaboration also targets new inbound-focused business models tied to Japan’s fast-growing international visitor market.
According to government data referenced by the companies, Japan welcomed approximately 42.7 million foreign visitors in 2025, with inbound consumer spending reaching around ¥9.5 trillion. The new refund-based system is intended to improve transparency and reduce fraud risks while aligning Japan’s duty-free procedures with global travel retail standards.
ITOCHU said the alliance fits within its downstream-focused growth strategy, which prioritises closer integration with consumer-facing retail services and financial infrastructure.
What Happens next
The two companies will begin rolling out joint store onboarding programmes and system integration work ahead of the regulatory change, with further expansion planned across high-traffic duty-free locations during 2026.
