What Are Japanese Swords — Prerequisite Knowledge for Understanding the Export Market

Japanese swords are not mere blades; they are treated as "fine art" under Japan's Cultural Properties Protection Law. In modern Japan, sword manufacturing is permitted only to sword smiths (tōshō) certified by the Agency for Cultural Affairs, and as of 2026 there are approximately 300 such craftspeople nationwide. To complete a single blade requires the use of a special steel called tamahagane, along with weeks of forging, polishing, and koshirae (mounting) work.

For export, the existence of a registration certificate based on Japan's "Firearms and Swords Control Law" (Tōhō) is a prerequisite. Swords without registration certificates are illegal to possess even within Japan, so all legally circulating blades carry registration certificates issued by prefectural boards of education. To export overseas, an "export permit" procedure based on the Cultural Properties Protection Law is also necessary, and swords designated as Important Cultural Properties or Important Art Objects are in principle not exportable. Understanding this regulatory background is the first step toward accurately grasping the export market.

Growing Collector Demand in Western and Asian Markets

Since the 2020s, overseas demand for Japanese swords has been steadily expanding. In the West, historical interest in the katana has been strong, with the samurai film boom of the 1980s–90s and the spread of martial arts (kendo, iaido) creating a foundation. More recently, Japanese anime and game content (such as "Demon Slayer" and "Ghost of Tsushima") have been directing young generations' interest toward Japanese swords. However, demand derived from these secondary creations centers more on modern swords (created by contemporary sword smiths) and art swords rather than traditional blades.

In Asian markets, the presence of wealthy collector circles centered on Taiwan, Hong Kong, and Singapore is growing. Mainland China faces legal difficulties with individual imports due to import restrictions discussed later, but in Southeast Asia, a movement is emerging to view Japanese swords as "alternative assets" for inheritance and asset preservation purposes. In Korea, despite historical sensitivities regarding Japanese sword imports, demand is being confirmed among certain martial artists and fine art investors.

According to people affiliated with the Zenkoku Tōken Shōgyō Kyōdō Kumiai (National Association of Sword Merchants), the number of inquiries from overseas buyers has risen markedly since 2022, with particularly strong interest from the United States, Germany, France, and Australia.

Import Regulations in Each Country — Risks That Can Invalidate Transactions If Unknown

Export and import of Japanese swords can face significant obstacles due to the importing country's legal regulations. Let's review the situation in major countries.

United States: At the federal level, there is no blanket prohibition on sword imports, and regulations regarding blade length and similar matters are left to state law. States such as California have regulations concerning concealed carrying, but possession in one's home and collection as fine art are legal in most states. However, import requires declaration to U.S. Customs and Border Protection (CBP), and tariffs apply based on value.

Germany and EU: In the EU, swords often fall outside the scope of the weapons regulatory directive (2021/555/EU), but German domestic law (Waffengesetz) provides different regulations depending on whether blades are single-edged or double-edged and by blade length. Japanese swords have a single-edged structure, but carrying and public possession are prohibited, with home storage and treatment as fine art being the norm.

China: In China, under "Blade and Sword Management Regulations," the import of blades with a blade length of 15 centimeters or more requires a permit, making it practically very difficult for individuals to import Japanese swords through regular channels. For this reason, transactions destined for China often take place via Hong Kong or through local subsidiaries, and carry gray-zone transaction risks.

Australia: In Australia, swords are classified as "prohibited weapons" in most states, and import requires applications to state police or licensing authorities. Exception provisions for collectors and martial artists have been established, but because the procedures are cumbersome, transactions through specialized dealers are recommended.

These complex legal regulations raise the barriers to entry for Japanese sword export businesses while simultaneously creating demand for specialized dealers well-versed in regulatory compliance.

The Rise of Online Sales Platforms and Their Challenges

The role of the Internet in overseas sales of Japanese swords has grown year by year. Traditionally, in-person transactions through domestic sword shops and antique markets were the mainstream, but from the late 2010s onward, person-to-person transactions through platforms such as eBay, Etsy, and Yahoo! Auctions increased. Furthermore, in the 2020s, specialized auction sites dedicated to Japanese swords and cross-border e-commerce platforms are being developed.

Within Japan, web media such as "Tōken World" has been strengthening content for overseas audiences, with information dissemination in English and Chinese becoming active. Buyers from abroad increasingly conduct prior research and contact reliable domestic dealers directly.

However, challenges unique to online transactions also exist. First is the question of authenticity verification. A Japanese sword's value depends on the sword smith, era, condition, and the presence or absence of accompanying items (koshirae, registration certificate), but accurately determining this from photographs alone is difficult even for experts. Second is legal risk in international shipping. Risks include seizure or confiscation of the blade due to missing export permits or customs troubles in the importing country. Third is the risk of payment disputes and fraud. Because these are high-value items, reports of credit card fraud and counterfeit goods have been spotted in overseas forums.

To address these challenges, some dealers have introduced "escrow services" and "transactions with third-party authentication certificates," and industry-wide efforts toward ensuring trustworthiness are advancing.

The Impact of the Weak Yen on Japanese Sword Exports

Since 2022, the Japanese yen has fallen sharply against the dollar and euro, and historically weak yen levels have continued through 2024–2026. This exchange rate trend affects the Japanese sword export market in two ways.

The first is "improved price competitiveness." For example, a blade priced at 1 million yen in the domestic market would have cost approximately 9,090 dollars at pre-weak yen exchange rates (110 yen per dollar), but at 150 yen per dollar it can be purchased for approximately 6,667 dollars. For overseas buyers, Japanese swords have effectively "become cheaper," and this is stimulating purchasing appetite. In the antiques and fine art market, there has been a notable movement of Western buyers—seeing the weak yen as an opportunity—visiting auctions and sword shops throughout Japan.

The second is "concerns about inventory flowing overseas." Within Japan, concern has grown over the possibility that masterpieces and ko-tō (swords made before the Muromachi period) will flow overseas taking advantage of the weak yen. The Agency for Cultural Affairs and the National Association of Sword Merchants take the position that culturally valuable swords should be prioritized for domestic preservation and transmission, and the number of applications for Important Cultural Property designation is on an upward trend.

Among industry experts, the prevailing view is that "the weak yen is a temporary tailwind, and using this period to cultivate overseas customers and build trust is the key to long-term export strategy." Rather than relying solely on price advantage, correctly communicating the cultural value and technical background of Japanese swords is considered essential for sustainable export business.

Industry Experts' Vision for the Sword Export Market

In considering the future of Japanese sword exports, industry participants commonly point to the importance of "eliminating information asymmetry." Currently, many potential overseas buyers have poor access to basic information about "where to buy," "what criteria to use in selecting," and "how to import." To fill this gap, an increasing number of dealers are putting effort into creating educational content in English, Chinese, and Korean.

On the technical front, research is advancing both domestically and internationally into blockchain-based management of blade provenance and AI-supported tools to assist in reading sword smith signatures (mei). If these technologies become widespread, they are expected to contribute to improved reliability in online transactions.

On the other hand, there is also a structural problem: the training of new sword smiths is not keeping pace. The number of active sword smiths is on a long-term downward trend, and it has been noted that the supply of quality modern swords may not keep up with demand. While this creates upward pressure on prices, it also works to increase the value of ko-tō and used blades in the antiques market.

Regarding export restrictions, the Japanese government and Agency for Cultural Affairs are advancing the development of guidelines for "appropriate international circulation of cultural properties," and improved transparency in transactions through legitimate channels is anticipated. Maintaining compatibility with UNESCO's 1970 Convention on the Prevention of Illicit Import, Export and Transfer of Ownership of Cultural Property while elevating the international standing of legal Japanese sword transactions has become the long-term goal of the industry as a whole.

Japanese swords continue to attract worldwide attention as embodiments of Japanese traditional techniques and spiritual culture, transcending their status as mere collectors' items. The expansion of their export market has the potential, under appropriate regulatory and information-sharing frameworks, to contribute to Japan's cultural diplomacy.