Exporting Question

[MartinB]

Hi

After spending several months researching how to make a living in Thailand I finally decided that teaching was the safest bet. However, I am always on the look out for income opportunities. I stumbled across a product here in Thailand that has good selling potential back in the UK. The product is only small and therefore does need a lot of shipment space to reach my desired profit targets. I don’t really want to have to open up a full blow company to trade. I have no experience in exporting - can anyone recommend any good books or websites to enable me to increase my knowledge on the subject.

Cheers

[p_brownstone]

http://www.thaitrade.com/default.shtml

[Richard Hall]

Hi

After spending several months researching how to make a living in Thailand I finally decided that teaching was the safest bet. However, I am always on the look out for income opportunities. I stumbled across a product here in Thailand that has good selling potential back in the UK. The product is only small and therefore does need a lot of shipment space to reach my desired profit targets. I don’t really want to have to open up a full blow company to trade. I have no experience in exporting - can anyone recommend any good books or websites to enable me to increase my knowledge on the subject.

Cheers

Except you are forwarding by using mail or a courier service (usually allowing 20 - 30kgs max depending on the country of destination) you will require a card issued by The Customs Department of Thailand.

The card is usually referred to as But Kaeng (= Hard Card) by the forwarding companies and has the size of a credit card. It bears the photo of the owner, the tax number, an expiry date (it is issued with a three years validity) and other relevant data.

When applying for the card you have to present documents such as your passport, work permit, company registration. Once you have this card showing these documents again is not necessary whenever you export. Hand the card (or signed copy of the card respectively), the merchandise, a packaging list and an invoice to any forwarding company and that's it.

Usually the forwarders always asked for this card and only holders of such a card may export/import according to the law. Means at least a work permit and a tax number is an absolute must.

If you do not want to by-pass the regulations obviously you only have the option to apply for a work permit or employ an export company and/or card holder for the job. Any additonal info required please feel free to PM me.

Good luck.

Richard

[MartinB]

Thanks for all the information. Am I right in saying that to obtain the appropriate work permit etc I have no option but to open up a company and that this involves registering 2 million baht in capital?

Cheers

[Guest IT Manager]

Registered capital or banked capital is dependant upon where you register. Depending on location, PM myself in the North or Indo-Siam in Bangkok for assistance.

IT

[Richard Hall]

Thanks for all the information. Am I right in saying that to obtain the appropriate work permit etc I have no option but to open up a company and that this involves registering 2 million baht in capital?

Cheers

The registered capital is surely the smallest obstacle to take but to obtain your work permit you also need 4 Thai employees and pay them salaries. You need to appoint yourself as Managing Director and pay yourself a salary of THB 50.000 a month.

Needless to say that income tax and health insurance has to be paid on a monthly base. The rate for the health insurance has just been raised from 8 to 10% (5% to be borne by the emplyee and 5% by the employer) effective January this year.

Also as an active company proper accounting needs to be done and taxes have to be paid by the 5th of the following month.

Before taking on the major step of establishing a company I strongly suggest you to find out whether their is actually a market for the product you have in mind and that an appropriate distribution chain is in line. Eventually the hardest piece in trading business is to get the product to the end-customer (retail). If you do not have the retail net yourself or the appropriate conections to retail distribution chains at least you require a wholesaler that has. Having a wholesaler in between, however, eats up plenty of margin and leaves you/the factory only a very small profit. Usually wholesalers mark-up 100% and retailers do that again. Under these circumstances look at your cost price of the desired product, add freight, duty and taxes and then put 200% on top. Look at the result objectively and decide whether if you were a UK customer you would buy the product or not. Keep in mind that their is a very strong price pressure coming from China. Is your product really unique and/or superior in quality? To be on the safe side survey your target market prior to making a major investment. Also check whether there are any restrictions for exporting your product to the UK in place. Garments for examples fall under a quota regulation in Europe while others required special licenses.

Lots of luck that your plans work out as envisioned.

Richard

[jayrockwell]

Get a solicitor, set yourself up a Company, 2 million capital, get yourself an office, a Visa, a work permit, 4 Thai employees, an export 'hard card', 50000 baht a month, plus tax & benefits for the thai employees.

& A BIG HEADACHE!!

Alternatively, we send monthly LCL (less than container load) shipments to the UK we can pack, invoice, clear and ship your items, also clearance and delivery in the UK. All without any of the above 'requirements', drop me a PM for some pricing.

We need to know who you are and that your not sending anything 'naughty'.

Jay

[MartinB]

Thanks guys for all the info and advice. I am carrying out further market research in the UK this April. I have a contact in the UK who will continue with the research until the end of May we will then make the decision to trade or not.