Administrative action against our subsidiary
SGHグローバル・ジャパン株式会社 (consolidated subsidiary)
Bonded warehouse at the Tokyo Logistics Center, bonded warehouse at the Narita Logistics Center, bonded warehouse at the Kansai Airport Logistics Center, and foreign cargo
A decline in the compliance awareness of employees involved in the operations. Underlying factors included insufficient staffing in response to a significant increase in cargo volumes, pressure on frontline operations to prioritize delivery lead times, and serious deficiencies in the governance framework.
Outsourcing expenses and other costs will be incurred, but the amount is Not disclosed
Fiscal year ending March 2027
Outsourcing expenses and other costs have been incorporated into the previously disclosed earnings forecast, and no revision to the earnings forecast will be made in connection with this matter.
Related procedures
Revocation of the customs brokerage license, revocation of the bonded warehouse permits, suspension of customs brokerage operations, and notification of administrative action
Tokyo Customs
Company response
SGJ’s customs brokerage operations will be suspended from 1 June 2026 through 31 August 2026. Following revocation of the bonded warehouse permits, the bonded warehouse operations at the Narita Logistics Center and Kansai Airport Logistics Center will be affected.
① Redesign of operations, ② review of the organizational structure, ③ review of the personnel system, ④ thorough compliance training, and ⑤ fundamental strengthening of the governance framework
SGJ’s customs declaration operations and storage of cargo currently undergoing procedures will be outsourced to partner companies. The company will continue implementing measures to prevent recurrence, providing compliance training, and conducting monitoring.
| Item | Details |
|---|---|
| Event name | Administrative action against our subsidiary |
| Date of occurrence | June 2025 (unauthorized importation occurred at the bonded warehouse at the Tokyo Logistics Center) |
| Date recognized / date notice received | December 2025 (notice of administrative action received from Tokyo Customs) |
| Subject Entity | SGHグローバル・ジャパン株式会社 (consolidated subsidiary) |
| Target Locations / Products | Bonded warehouse at the Tokyo Logistics Center, bonded warehouse at the Narita Logistics Center, bonded warehouse at the Kansai Airport Logistics Center, and foreign cargo |
| Cause | A decline in the compliance awareness of employees involved in the operations. Underlying factors included insufficient staffing in response to a significant increase in cargo volumes, pressure on frontline operations to prioritize delivery lead times, and serious deficiencies in the governance framework. |
| Amount of Impact on Business Performance | Outsourcing expenses and other costs will be incurred, but the amount is Not disclosed |
| Accounting period in which recognized | Fiscal year ending March 2027 |
| Impact on Earnings Forecast | Outsourcing expenses and other costs have been incorporated into the previously disclosed earnings forecast, and no revision to the earnings forecast will be made in connection with this matter. |
| Type of litigation or proceeding | Revocation of the customs brokerage license, revocation of the bonded warehouse permits, suspension of customs brokerage operations, and notification of administrative action |
| Court or authority | Tokyo Customs |
| Date of filing / date of action | Notice of administrative action: December 2025. Revocation of bonded warehouse permits: 31 May 2026. Suspension of customs brokerage operations: 1 June 2026 to 31 August 2026. Revocation of the customs brokerage license: 31 August 2026 (effective 1 September 2026) |
| Suspended operations | SGJ’s customs brokerage operations will be suspended from 1 June 2026 through 31 August 2026. Following revocation of the bonded warehouse permits, the bonded warehouse operations at the Narita Logistics Center and Kansai Airport Logistics Center will be affected. |
| Measures to prevent recurrence | ① Redesign of operations, ② review of the organizational structure, ③ review of the personnel system, ④ thorough compliance training, and ⑤ fundamental strengthening of the governance framework |
| Outlook | SGJ’s customs declaration operations and storage of cargo currently undergoing procedures will be outsourced to partner companies. The company will continue implementing measures to prevent recurrence, providing compliance training, and conducting monitoring. |
Items this document does not state (10)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.In June 2025, foreign cargo was imported at the bonded warehouse at the Tokyo Logistics Center without obtaining permission from the Director-General of Customs. The company identified the direct cause as a decline in employees’ compliance awareness, and cited insufficient staffing, pressure on frontline operations to prioritize delivery lead times, and serious deficiencies in the governance framework as underlying factors.