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The Guide to Thailand’s Import and Export Procedures

Since the enactment of the Foreign Business Act of 1999, foreign companies operating in various sectors in Thailand have been required to have a Thai majority shareholder. However, one exception to this rule is import/export trading. This exemption, coupled with Thailand's developed infrastructure and robust legal framework, has positioned the country as a focal point for cross-border traders. In 2015, Thailand recorded exports worth US$212 billion, ranking 22nd globally, while imports totaled US$177 billion, placing Thailand as the world’s 25th largest importer.

According to the World Bank, both the time and cost associated with importing and exporting goods in Thailand are significantly lower than the regional average for neighboring countries in the East Asia and Pacific region. In recent years, import/export procedures have been further streamlined through the implementation of the online e-Customs system. This electronic platform offers a centralized service for all stakeholders involved in cross-border trade, facilitating processes such as license issuance and payment of duties and taxes, which can now be completed paperlessly through the central e-Customs system.

Once a company is established in Thailand, including Value Added Tax (VAT) registration and the establishment of a corporate bank account, import and export operations can commence. Below are the outlined procedures for trading goods to and from Thailand:

Importing:

● Register to use the e-Customs system:
- Companies must possess a 'digital certificate' for online operations, including import and export registration.
- Registration can be done directly or through an agent, involving tasks such as software installation, digital certificate verification, and message exchange testing with the e-Customs system.

● Review controlled goods:
- Determine if goods require an import permit and if they are classified as 'red line' goods, which are high-risk items necessitating additional certification and verification. 
- Submit necessary supporting documents, including Bill of Lading, Invoice, Packing List, Import License, Certificates of Origin, etc.

● Submission and verification of declaration:
- Submit an Import Declaration along with an arrival report to the e-Customs system.
- The system verifies the submission, identifying any discrepancies and specifying the shipment as green line or red line.

● Payment of duties and taxes:
- Dutiable goods require payment at the Customs Department or via the e-Payment section of the e-Customs system.

● Inspection and release of cargo:
- Green line goods undergo online screening, while red line goods require physical inspection and document checks by customs officials.

Exporting:
● Register to use the e-Customs system:
- Only one registration is needed for both importing and exporting.

● Review controlled goods:
- Check for goods requiring an export permit and prepare necessary documents for red line goods.

● Submission and verification of declaration:
Submit an Export Declaration along with an invoice and cargo data to the e-Customs system.

● Payment of duties and taxes:
- Export duties can be paid through various methods, including at the Customs Department or via e-Payment.

● Inspection and release of cargo:
- Cargo control report is sent to the e-Customs system, which generates a report for customs officials to clear the shipment.

Regulatory changes in Thailand can occur rapidly, necessitating ongoing awareness to ensure smooth operations. Specialists at Dezan Shira & Associates provide expertise in navigating the Thai regulatory landscape, assisting businesses in leveraging tariff incentives and ensuring compliance with evolving regulations.

This guide outlines the import and export procedures in Thailand, emphasizing the steps involved and the importance of staying informed about regulatory changes for successful trade operations.

2024.04.29

Asia Plat

The Guide to Vietnam’s Import and Export Procedures

Vietnam's burgeoning economy has positioned it as one of the world's fastest-growing markets. With substantial foreign investor interest, understanding Vietnam's import and export procedures is vital. Here's a detailed guide:

Vietnam doesn't mandate separate import/export licenses. Establishing a trading company is common, requiring no minimum capital. However, trading licenses are necessary for selling imported products domestically. Alternatively, foreign entities can use importers of record for logistical ease.

Vietnam's customs clearance standards ensure goods' quality, specifications, and quantity. Certain products, like pharmaceuticals, undergo specific inspections. Documentation includes business registration certificates, import/export business code registration certificates, and additional documents based on goods.

Required Customs Documents:
● For Imports:
- Bill of lading
- Import goods declaration form
- Import permit (if applicable)
- Certificate of origin
- Commercial invoice
- Customs import declaration form
- Inspection report
- Packing list
- Technical standard/health certificate

● For Exports:
- Electronic Export Customs Declaration (E-Form HQ/2015/XK)
- Bill of lading
- Contract
- Certificate of origin
- Commercial invoice
- Customs export declaration form
- Export permit (if applicable)
- Packing list
- Technical standard/health certificate

●Priority Customs Treatment:
Companies can apply for priority treatment to reduce customs compliance costs, offering benefits like exemption from examination of supplementary customs documentation.

●Duties and Taxes
Import Tax:
Rates vary based on goods' type and origin.
Preferential, special preferential, and ordinary tax rates apply.
Import tariffs can be found on the Vietnam Customs portal.

●Export Tax:
Most goods and services exported from Vietnam are tax-exempt.
Export duties apply to select items, mainly natural resources.
VAT may apply to many goods.

●Tax-Exempt Goods:
Certain situations exempt goods from tax, such as those imported for re-export or temporarily exported for re-import.

●Optimizing Customs Experience:
Vietnam's customs procedures are intricate and subject to change. Staying updated and consulting with professionals is crucial for a smooth experience.

Navigating Vietnam's import and export landscape requires attention to detail and compliance with evolving regulations. Understanding the procedures and seeking professional guidance can ensure successful trade operations in this dynamic market.

2024.05.13

Asia Plat

Unlocking Opportunities: Indonesia's Export Outlook

Indonesia, with its vast archipelago, rich natural resources, and growing economy, stands as a significant player in the global export market. The country's export sector serves as a vital engine of economic growth, contributing to job creation, foreign exchange earnings, and industrial development. In this article, we explore Indonesia's export outlook, examining trends, opportunities, and challenges shaping the trajectory of its export-driven economy.

2024.05.09

Asia Plat

Charting Vietnam's Export Trajectory: A Forward Outlook

Vietnam, with its bustling economy and dynamic business landscape, has emerged as a key player in the global export market. The country's export sector serves as a cornerstone of economic growth, leveraging its competitive advantages in manufacturing, agriculture, and services to capture opportunities in international trade. In this article, we delve into Vietnam's export outlook, examining trends, opportunities, and challenges shaping the trajectory of its export-driven economy.

2024.05.02

Asia Plat

Navigating Singapore's Export Landscape: An Outlook for Growth

Singapore, known as a global financial hub and a melting pot of cultures, is also a key player in the world of international trade. The city-state's export sector plays a crucial role in driving economic growth, leveraging its strategic location, advanced infrastructure, and skilled workforce to connect businesses with markets around the world. In this article, we delve into Singapore's export outlook, exploring trends, challenges, and opportunities on the horizon.

2024.04.29

Asia Plat

The Guide to Thailand’s Import and Export Procedures

Since the enactment of the Foreign Business Act of 1999, foreign companies operating in various sectors in Thailand have been required to have a Thai majority shareholder. However, one exception to this rule is import/export trading. This exemption, coupled with Thailand's developed infrastructure and robust legal framework, has positioned the country as a focal point for cross-border traders. In 2015, Thailand recorded exports worth US$212 billion, ranking 22nd globally, while imports totaled US$177 billion, placing Thailand as the world’s 25th largest importer.

According to the World Bank, both the time and cost associated with importing and exporting goods in Thailand are significantly lower than the regional average for neighboring countries in the East Asia and Pacific region. In recent years, import/export procedures have been further streamlined through the implementation of the online e-Customs system. This electronic platform offers a centralized service for all stakeholders involved in cross-border trade, facilitating processes such as license issuance and payment of duties and taxes, which can now be completed paperlessly through the central e-Customs system.

Once a company is established in Thailand, including Value Added Tax (VAT) registration and the establishment of a corporate bank account, import and export operations can commence. Below are the outlined procedures for trading goods to and from Thailand:

Importing:

● Register to use the e-Customs system:
- Companies must possess a 'digital certificate' for online operations, including import and export registration.
- Registration can be done directly or through an agent, involving tasks such as software installation, digital certificate verification, and message exchange testing with the e-Customs system.

● Review controlled goods:
- Determine if goods require an import permit and if they are classified as 'red line' goods, which are high-risk items necessitating additional certification and verification. 
- Submit necessary supporting documents, including Bill of Lading, Invoice, Packing List, Import License, Certificates of Origin, etc.

● Submission and verification of declaration:
- Submit an Import Declaration along with an arrival report to the e-Customs system.
- The system verifies the submission, identifying any discrepancies and specifying the shipment as green line or red line.

● Payment of duties and taxes:
- Dutiable goods require payment at the Customs Department or via the e-Payment section of the e-Customs system.

● Inspection and release of cargo:
- Green line goods undergo online screening, while red line goods require physical inspection and document checks by customs officials.

Exporting:
● Register to use the e-Customs system:
- Only one registration is needed for both importing and exporting.

● Review controlled goods:
- Check for goods requiring an export permit and prepare necessary documents for red line goods.

● Submission and verification of declaration:
Submit an Export Declaration along with an invoice and cargo data to the e-Customs system.

● Payment of duties and taxes:
- Export duties can be paid through various methods, including at the Customs Department or via e-Payment.

● Inspection and release of cargo:
- Cargo control report is sent to the e-Customs system, which generates a report for customs officials to clear the shipment.

Regulatory changes in Thailand can occur rapidly, necessitating ongoing awareness to ensure smooth operations. Specialists at Dezan Shira & Associates provide expertise in navigating the Thai regulatory landscape, assisting businesses in leveraging tariff incentives and ensuring compliance with evolving regulations.

This guide outlines the import and export procedures in Thailand, emphasizing the steps involved and the importance of staying informed about regulatory changes for successful trade operations.

2024.04.29

Asia Plat

The Guide to Vietnam’s Import and Export Procedures

Vietnam's burgeoning economy has positioned it as one of the world's fastest-growing markets. With substantial foreign investor interest, understanding Vietnam's import and export procedures is vital. Here's a detailed guide:

Vietnam doesn't mandate separate import/export licenses. Establishing a trading company is common, requiring no minimum capital. However, trading licenses are necessary for selling imported products domestically. Alternatively, foreign entities can use importers of record for logistical ease.

Vietnam's customs clearance standards ensure goods' quality, specifications, and quantity. Certain products, like pharmaceuticals, undergo specific inspections. Documentation includes business registration certificates, import/export business code registration certificates, and additional documents based on goods.

Required Customs Documents:
● For Imports:
- Bill of lading
- Import goods declaration form
- Import permit (if applicable)
- Certificate of origin
- Commercial invoice
- Customs import declaration form
- Inspection report
- Packing list
- Technical standard/health certificate

● For Exports:
- Electronic Export Customs Declaration (E-Form HQ/2015/XK)
- Bill of lading
- Contract
- Certificate of origin
- Commercial invoice
- Customs export declaration form
- Export permit (if applicable)
- Packing list
- Technical standard/health certificate

●Priority Customs Treatment:
Companies can apply for priority treatment to reduce customs compliance costs, offering benefits like exemption from examination of supplementary customs documentation.

●Duties and Taxes
Import Tax:
Rates vary based on goods' type and origin.
Preferential, special preferential, and ordinary tax rates apply.
Import tariffs can be found on the Vietnam Customs portal.

●Export Tax:
Most goods and services exported from Vietnam are tax-exempt.
Export duties apply to select items, mainly natural resources.
VAT may apply to many goods.

●Tax-Exempt Goods:
Certain situations exempt goods from tax, such as those imported for re-export or temporarily exported for re-import.

●Optimizing Customs Experience:
Vietnam's customs procedures are intricate and subject to change. Staying updated and consulting with professionals is crucial for a smooth experience.

Navigating Vietnam's import and export landscape requires attention to detail and compliance with evolving regulations. Understanding the procedures and seeking professional guidance can ensure successful trade operations in this dynamic market.

2024.05.13

Asia Plat

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