Thailand is one of the top destinations for many entrepreneurs to start their business, although the implementation of the Foreign Business Act of 1999 stated that any foreign businesses set up in a range of industries in Thailand must have a “Thai” majority shareholder. However, the business that is exempt from this law is “import/export trading.” This is why exports make up around 65% of the country’s GDP and in 2021, Thailand’s exports are valued at over $21 billion, making Thailand the 24th highest exporting country in the world.
Without a doubt, the high export volume and exemption from the Foreign Business Act cause many business people to start exporting and importing.
In this article, we will explore the 5 steps of Thailand’s Import and Export Procedures for entrepreneurs that are planning to expand to the import/export business.
5 Steps of Import and Export Procedures
- Register to The E-Customs System
In recent years, import/export procedures of Thailand have been streamlined through the use of the online e-Customs System. To register for the e-Custom System, the business owner needs to obtain a “digital certificate,” an electronic signature file used to confirm the identity and authenticity of the business. You can see more details about the certificate here.
After the digital certificate is procured, businesses can then choose to either register with the e-Custom System directly (at their own office) or through an agent. For more information, please visit the official website: www.e-customs.co.th/e-customs/
- Review of The Controlled Goods
During this stage, two types of revision will be implemented by the Customs Department. First, to check if the goods require an import/export permit. Second, an examination of the product itself will be performed, to see if the products have crossed the “red line” or goods that are considered to be high risk or require additional certification and verification upon arrivals such as food, drinks, and plants.
If the products you’re dealing with are labeled as the red line, it is vital to provide the following documents:
- Bill of Lading (B/L) or Air Waybill
- Packing List
- Import License/Export License
- Certificates of origin
- Other documents (as required) such as FDA certification, list of ingredients, technical standards certification, etc.
- Submission and Verification of Declaration
Next, entrepreneurs need to submit the Import/Export Declaration to the e-Customs System along with all the supporting documents as mentioned in the step above. The system will then issue a declaration, payment numbers, and define whether the shipment is within the green or red line.
- Payment of Duties and Taxes
According to the Thai Tariff Decree, any goods imported or exported out of the Kingdom are subject to duties and taxes. The amount of payment will be informed through the e-Customs System and can be paid via 3 different methods which are
1.) Customs Department of the port of entry/exit
2.) e-Payment via the e-Customs System
3.) Payment at a bank
However, not all products are exposed to duties and taxes. Some items are exempt from import/export duties, you can find the list of those products at the Integrated Tariff Database website.
- Inspection and Release of Cargo
The final step is the inspection of import and export goods. As for the green line products, it is a simple screening process that won’t take much time at all. In contrast, red line items must go through a physical inspection by the Customs officials and all supporting documents must be presented in order to pass the inspection process.
Exporting goods will go through the same process and when the shipment arrives at the destination, the shipping company or agent must submit the manifest information back to the e-Customs System.
That is all the steps toward importing and exporting goods from the Kingdom of Thailand which may not be complicated as many might think. However, with a clear understanding of Thailand’s import and export procedures, you may wonder where to find the best wholesale product in the country – that place is AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION.
AEC TRADE CENTER – PANTIP WHOLESALE DESTINATION
The largest and most comprehensive wholesale center in the Southeast Asia region, conveniently located in the heart of Bangkok, Thailand. Wholesalers can meet with new business partners both in Thailand and other countries including government and private business alliances, while also gaining more insight into the industry. Similarly, the Chinese alliances from CCC Group, YIWU SELECTION THAILAND SHOWCASE, World’s largest International miscellaneous goods wholesale market in China and major private companies are ready to support your business growth with high-quality products from China at the best prices.
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