Commodity Import Taxes

[simon43]

I'm looking to import certain commodities into Thailand on a commercial basis. I can get hold of the tax classification code for each commodity, but where/how do I check what the relevant import/excise taxes are for these commodities? Is there an online database???

cheers - Simon

[Richard Hall]

Don't know of a database but in most cases it will surely be just the judgement of the customs clearance officier what customs duty rate will actually be charged.

Commodities is a broad expression and can include lots of customs duties levels depending on the actual product segment. A HS Code will surely help but this does not necessarily mean that a customs officier will actually share the same view as you or your supplier do particularly if there are significant differences in duty levels for categories that could apply. Most likely it is going to be 20% customs duty plus 7% tax but can be higher for example if the items can also be easily manufacturered in Thailand. Certainly also depends where you are going to import from. Import from ASEAN members will be cheaper than from non-member countries. A few years ago I imported fabric made fancy mobile phone covers from Korea and was charged 40% plus VAT.

Also keep in mind that the sole percentage may not just do the job since the question will also certainly be how your product will be valued by Customs. They are surely aware of common foul practices such as "under invoicing" and therefore possibly just do not believe the price charged in the official invoice but rather go by market prices and/or data possibly obtained from previous imports by other parties for comparable items.

The very moment when the goods are arriving this is when the authorities have absolute control to collect taxes. Needless to say that not charging and passing VAT on is common here (retail and wholesale) and so it may happen that Customs want to pre-collect to make up for possible future failures by setting the calculation base high means you, the importer, may have to absorb all the burden.

Also Customs and the Revenue Department seem to be in kind of a competition. First want to make money by collecting lots of customs duty and the latter want that your company makes profit as much as possible to tax you on that.

Make sure you have a good and capable customs clearance officier. Strongly suggest consulting with him prior to actually carrying out the import process to avoid sudden unpleasant surprises when the goods actually arrive here.

Good luck.

[Indo-Siam]

See: http://www.customs.go.th/Tariff/Tariff.jsp

Or: http://www.apectariff.org/tdb.cgi/ff3139/apeccgi.cgi?TH

You owe me a beer!

Cheers!

Indo-Siam

www.thaitradedata.com

[simon43]

You are right!!!! I think I owe you a crate of beer Thanks very much for the link (although the excise rate applicable to my commodity is steep!!).

Now where is my wallet .. seem to have mislaid it somewhere .... always have this problem in bars ....