Customs Duty on medical device?

[WaveHunter]

Can somebody confirm the following?  Customs duty on importing a "medical device" is zero.  VAT is 7%

 

I did my best to figure this out from Thai Customs website but it's like they are on another planet or something LOL!  First of all, medical device classification # is listed under Home & Garden, Furniture (??? Go figure that one!).  Then, the poor translation is highly open to interpretation.

 

I've already been ridiculously burned by Customs once when they assessed a 16,000 baht value on an item with a stated declared value of only 1,100 baht.  That fiasco took a month to get fixed and I'm still waiting for them to release and deliver it.  So, I'm hoping some well informed, kind soul can confirm the following...

 

From the Thai Customs website, the custom import tax for medical devices are:

General duty is 0%

Special Tariff:  A government tax on imported and exported goods. rate 1 is NULL

The average VAT rate applicable in Thailand is 0.07

Note: If the special tariff A government tax on imported and exported goods. rate is NULL then general duty is applicable.

 

It would be nice if they got an English speaking person to handle their translations, but since they don't, I want to see if somebody on ThaiVisa can confirm this before I place an order. 

[CharlieH]

Have you tried calling their helpline and asking directly ?

[WaveHunter]

2 hours ago, CharlieH said:

Have you tried calling their helpline and asking directly ?

I appreciate your good advice and contacted them but they were not much help unfortunately. 

 

They confirmed that Custom tax is indeed zero (only 7% VAT) but then they started talking about how it would need to be documented and they totally lost me.  After 20 minutes on the phone and being transferred to an "fluent" english speaking rep, it was still a mystery what they were talking about.

 

The perils of not being able to speak Thai ????. 

 

I just got off the phone with FedEx, and they said they would "look into" what they Custom agent was talking about concerning documentation.

 

Nothing is ever easy when it comes to dealing with Thai Customs ????

 

  

Edited August 27, 2019 by WaveHunter

[Maestro]

Isn't a licence from the Ministry of Public Health needed for the importation of medical devices?

[Crossy]

1 hour ago, Maestro said:

Isn't a licence from the Ministry of Public Health needed for the importation of medical devices?

 

I think you are correct on this, here be dragons.

 

@WaveHunter what is this "device", is there any way to describe it that doesn't call it "medical" and choose a suitable customs code based on that?

 

Also, how big / costly is it, is it possible to send by a regular mail service rather than a courier?

 

[Curt1591]

12 minutes ago, FredGallaher said:

What exactly are you attempting to import? Whatever it is, it seems like a major hassle to get it imported. I've found that almost everything is that needed is available locally. Try a major pharmacy or hospital. Another option would be to use a Thai import company. They understand the rules and speak Thai.

The few medical devices I've looked into can cost more than double what they do in the States.

My brother-in-law works for a freight forwarding company. Dealing with him, I get even more confused!

[WaveHunter]

7 hours ago, Crossy said:

 

I think you are correct on this, here be dragons.

 

@WaveHunter what is this "device", is there any way to describe it that doesn't call it "medical" and choose a suitable customs code based on that?

 

Also, how big / costly is it, is it possible to send by a regular mail service rather than a courier?

 

You guys have made some pretty good points, and thanks for your replies.  From what I could understand from phone conversation with Customs, licensing is only necessary for commercial import, not for personal use.  However, the manufacturer also voiced concerns about labelling it as a "medical device" since that could put the bureaucratic red-tape machine at Customs in motion.  The devise is a infra-red / red-light LED panel used for speeding recovery from muscle / joint injuries.  Essentially it's a glorified heat-lamp.  I'm starting to think it may be better to declare it it as a beauty / wellness device and pay the customs duty instead of having Customs put me through a hassle, which they seem to be very good at doing.

 

This devise is normally incredibly over-priced (over $1,000 in the US and Europe) but a Chinese manufacturer makes a high-quality copy (with independent lab certification) for a fraction of the price.  The specifications are actually better than the mainstream Western versions.  It's not uncommon these days for a Chinese manufacturer to not only make a lower-priced product but have it be superior to the competition, and this is one of those cases.

 

What makes these devices unique is they use high-powered LED's in very specific wavelengths (620nm and 830nm) that scientific research has proven to be beneficial for sports injury recovery, and has many other proven health benefits.  On the surface it sounds like a lot of BS, but there are hundreds, if not thousands of scientific research papers on its' efficacy.  NASA developed it for horticultural growing experiments on Space lab missions, and then adapted it for use on the astronauts themselves for health preservation, wound healing, and other health issues associated with long space missions.  A lot of ongoing research right now into possible medical and health applications at major universities and research centers. Very compelling science behind it.  Google "red light therapy" and look at legitimate research articles if you're curious.

 

Edited August 28, 2019 by WaveHunter

[WaveHunter]

35 minutes ago, WaveHunter said:

You guys have made some pretty good points, and thanks for your replies.  From what I could understand from phone conversation with Customs, licensing is only necessary for commercial import, not for personal use.  However, the manufacturer also voiced concerns about labelling it as a "medical device" since that could put the bureaucratic red-tape machine at Customs in motion.  The devise is a infra-red / red-light LED panel used for speeding recovery from muscle / joint injuries.  Essentially it's a glorified heat-lamp.  I'm starting to think it may be better to declare it it as a beauty / wellness device and pay the customs duty instead of having Customs put me through a hassle, which they seem to be very good at doing.

 

This devise is normally incredibly over-priced (over $1,000 in the US and Europe) but a Chinese manufacturer makes a high-quality copy (with independent testing lab certifications) for a fraction of the price.  The specifications are actually better than the mainstream Western versions (more powerful, yet safer to use).  It's not uncommon these days for a Chinese manufacturer to not only make a lower-priced product but have it be superior to the competition, and this is one of those cases.

 

What makes these devices unique is they use high-powered LED's in very specific red and infra-red wavelengths (620nm and 830nm) that scientific research has proven to be beneficial for sports injury recovery, and has many other proven health benefits.  On the surface it sounds like a lot of BS, but there are hundreds, if not thousands of scientific research papers on its' efficacy.  NASA developed it for horticultural growing experiments on Space lab missions, and based on the successful outcome of those experiments, they then adapted it for use on the astronauts themselves for health preservation, wound healing, and other health issues associated with long space missions.  A lot of ongoing research right now into possible medical and health applications at major universities and research centers. Very compelling science behind it.  Google "red light therapy" and look at legitimate research articles if you're curious.

 

 

Edited August 28, 2019 by WaveHunter

[WaveHunter]

6 hours ago, FredGallaher said:

In other words this is an experimental device for your own personal use only. You could run afoul of the Thai FDA if used on anyone but yourself. It may need clearance from the Thai FDA.

This reminds me of clinics (recently in the Thai news) that sell anti-wrinkle , anti aging creams etc. 

If you are expecting to do research, I'd suggest contacting a Thai university so you can do it properly.  

It is for my personal use, and I would not call it experimental at all for the applications I am interested in.  Its' efficacy in these areas have been well proven in numerous well founded scientific studies by some fairly prestigious institutions including NASA and Harvard Medical School, just to name a couple.

 

Edited August 28, 2019 by WaveHunter

[Maestro]

On 8/27/2019 at 5:33 AM, WaveHunter said:

From the Thai Customs website, the custom import tax for medical devices are:

General duty is 0%

Special Tariff:  A government tax on imported and exported goods. rate 1 is NULL

The average VAT rate applicable in Thailand is 0.07

Note: If the special tariff A government tax on imported and exported goods. rate is NULL then general duty is applicable.

 

What is the URL of the web page from which you copied the above text?

 

It is my understanding that Thailand uses the Harmonized Commodity Description and Coding Systems (HS) and it would surprise me if medical devices were listed under Home & Garden, Furniture. Click on the link above and on that page you will find the link UN Comtrade Commodity Classifications which will download a spreadsheet with the list of HS codes.

[Maestro]

12 hours ago, WaveHunter said:

However, the manufacturer also voiced concerns about labelling it as a "medical device" since that could put the bureaucratic red-tape machine at Customs in motion. 

 

If the manufacturer is already exporting this device on a commercial basis basis to any country, ask him to give you the Chinese HS code used in his export documents.

[Gulfsailor]

Ask seller to write on the invoice and export docs “hs code 8539.5000, LED lamp”. 10% duty plus 7% VAT. Don’t make things complicated calling it medical. 

[Crossy]

2 hours ago, Gulfsailor said:

Ask seller to write on the invoice and export docs “hs code 8539.5000, LED lamp”. 10% duty plus 7% VAT. Don’t make things complicated calling it medical. 

 

This^^^.

 

Calling it "medical" or "beauty" could set wheels in motion.

 

[WaveHunter]

6 hours ago, Gulfsailor said:

Ask seller to write on the invoice and export docs “hs code 8539.5000, LED lamp”. 10% duty plus 7% VAT. Don’t make things complicated calling it medical. 

Sounds like a plan; thanks!

[WaveHunter]

30 minutes ago, FredGallaher said:

Be aware that unbranded Chinese knock offs usually have little or no quality control processes in place. Branded products such as Apple do as part of the contracts. These is why they are so  cheap. The saying, "you get what you pay for" is often true. 

You make a good point, and generally I am wary of Chinese companies that produce knockoffs at very low cost but the particular company I’m dealing with is the same factory that produces devices for the “big Western brands”.  

 

Their own product offerings are not “knockoffs” but actually higher quality and with improved specifications than the ones they produce under contract for foreign clients.  All of the own products carry third-party certification from independent testing labs (Rohr, etc).

 

Not all Chinese manufacturers produce inferior products.  Quite to the contrary, due to extremely low labor costs, monetary devaluation by the Chinese government, and government subsidies, you can often get “more than you paid for”.

 

I’m not saying this is a good thing in a macro-economic sense.  The Chinese government’s economic strategies and tactics are horrible for fair and balanced world trade, so In a way I don’t feel so good about this, but on the other hand, many Western vendors are just ripping off their customers with vastly overpriced merchandise that is not as optimized as it could be.

 

Edited August 29, 2019 by WaveHunter

[WaveHunter]

9 hours ago, Gulfsailor said:

Ask seller to write on the invoice and export docs “hs code 8539.5000, LED lamp”. 10% duty plus 7% VAT. Don’t make things complicated calling it medical. 

@Gulfsailor, Where did you get this tariff lookup?  The Chinese manufacturer says they use HS Code 9405409000. Led Light, not 8539.5000, LED lamp.  I want to see tariff for their HS classification.  I tried looking up on Thai Customs and it came up as 60%, but with alternative lower tariffs BUT (of course) the descriptions are referenced only in Thai language that Google can not translate to English, so I have no idea what they mean.

 

It would be nice if there was a Thai Customs tariff lookup source that is more user-friendly for English; perhaps you can provide a link to it?

 

Edited August 29, 2019 by WaveHunter

[Gulfsailor]

8 minutes ago, WaveHunter said:

@Gulfsailor, Where did you get this tariff lookup?  The Chinese manufacturer says they use HS Code 9405409000. Led Light, not 8539.5000, LED lamp.  I want to see tariff for their HS classification.  I tried looking up on Thai Customs and it came up as 60%, but with sub-classifications with lower values BUT (of course) the sub-classification descriptions are referenced only in Thai language that Google can not translate to English, so I have no idea what they mean.

 

It would be nice if there was a simple lookup table; perhaps you can provide a link to it.

Website here;

http://itd.customs.go.th/igtf/en/main_frame.jsp

 

8539 specifically related to LED, whereas 9405 is more broad covering lamps in general. 9405.40900 is not listed by Thai customs, so they’ll use 9405.4099.

 

At preference rate option in the website choose ‘all’. First listed tariff is the ceiling rate, that is used when nothing else is applicable. That’s never the case. Look for 000 preference rate, which is the general reduced rate. For 9405 that’s 20%. For 8539 it’s 10%. If the Chinese manufacturer is willing to provide a certificate of origin and seller fills in a document relating to Thai-China free trade agreement, then you can get it in duty exempt, so you only pay VAT. A  seller wouldn’t want to do that for a one time customer though, too much hassle involved. 

[WaveHunter]

3 minutes ago, Gulfsailor said:

Website here;

http://itd.customs.go.th/igtf/en/main_frame.jsp

 

8539 specifically related to LED, whereas 9405 is more broad covering lamps in general. 9405.40900 is not listed by Thai customs, so they’ll use 9405.4099.

 

At preference rate option in the website choose ‘all’. First listed tariff is the ceiling rate, that is used when nothing else is applicable. That’s never the case. Look for 000 preference rate, which is the general reduced rate. For 9405 that’s 20%. For 8539 it’s 10%. If the Chinese manufacturer is willing to provide a certificate of origin and seller fills in a document relating to Thai-China free trade agreement, then you can get it in duty exempt, so you only pay VAT. A  seller wouldn’t want to do that for a one time customer though, too much hassle involved. 

Wow, you seem to know a lot about this.  Thanks for the explanation.  The seller is actually the manufacturer; I'm going to run your idea past them and see if they can make it duty free, or at least change the classification to 8539.5000.

 

Again, thanks!  Appreciate you taking the time to explain ????

 

[WaveHunter]

On 8/29/2019 at 2:19 AM, Gulfsailor said:

Ask seller to write on the invoice and export docs “hs code 8539.5000, LED lamp”. 10% duty plus 7% VAT. Don’t make things complicated calling it medical. 

@Gulfsailor (or anyone else with actual knowledge, I wonder if you can tell me what the procedure is for paying Customs duty tax on package shipped from China by a delivery service (not EMS). 

 

The manufacturer says they use DPEX (which I assume is similar to FedEx) for delivery.  I contacted DPEX and they told me the procedure is for them to ship to Thailand, and once the package passes through Customs, DPEX will contact me with the amount payable for Customs and instructions on how I can pay DPEX the amount due, and upon receipt of my payment, they will pay Customs, and then deliver the package directly to my home.

 

Does this sound right?  I've never used a delivery service for packages coming from China; only EMS, so I don't know if what they told me is correct or not.

 

My concern is to find out I actually have to make a trip to Customs to pay the duty in-person since I'm assuming that would mean traveling to Bangkok from where I live in Pattaya.  I really would like to avoid that if I can.

[Crossy]

12 hours ago, WaveHunter said:

@Gulfsailor (or anyone else with actual knowledge, I wonder if you can tell me what the procedure is for paying Customs duty tax on package shipped from China by a delivery service (not EMS). 

 

I have no direct experience with DPEX, but assuming they are like DHL or FedEx.

 

If there are no problems with customs clearance the delivery driver will have an invoice, you pay him cash when he delivers the box.

 

They usually call for directions so you can ask then how much you need to pay.

 

[Crossy]

@WaveHunter did you ever receive any items via DPEX?

 

A seller in China have just shipped me an item using DPEX, do they actually work like FedEx / DHL etc. and collect the duty on delivery?