Import duty on Thai made goods returned by customer?

[Smithson]

I run an online business, occasionally we have items returned via DHL because customers in other countries don't want to pay the import duties. The problem is we are charged import duty when importing them back into Thailand. The items are manufactured by us with our brand name and shipped with DHL. The bill from DHL/Thai customs states country of origin as Thailand.

 

The duty costs are not cheap, generally we don't pay and right the item of as a loss. Is there anything that can be done about this? Technically we may be importing, however it seems unfair.

[VocalNeal]

Does one need an export license? Or to register as an exporter? For the US to return stuff even for maintenance one needs some kind on registration number.

 

My spot the scam detector says Thai DHL are doing this? 

 

Who pays for the return freight?

Edited May 8, 2020 by VocalNeal

[Smithson]

We have all the necessary licenses etc. for doing export business. We pay DHL, but the bill is from the govt., it's detailed and itemized, although quite random. This is when parcels have been refused due to the customer not wanting to pay import tax. For this we pay no return postage, but it's irrelevant as it's normally cheaper to abandon the package rather than pay the tax.

 

If an item is posted we are told to go and collect it from a distant post office, which costs B300-B500 for the bike. They will not tell us the tax charge and will not forward the package to a closer PO.

 

My guess is there's probably nothing that can be done, it's just a shame the govt taking advantage in this way and discouraging for business.

[Monomial]

There is a mechanism I am aware of if you are repairing the device.

 

You need to record and take pictures of the serial number, then pay a deposit on the incoming item. When you reexport the repaired items, customs should refund the deposit after verifying the same item left that came in.  I have actually done this a few times via Thailand Post. Needed to go to the customs office down by Hua Lampong and it took most of an afternoon, but it did work.  I got my deposit back in the form of a check after about 3 months.

 

The problem is that doesn't help if the customer is returning the item because they don't want to pay import duties.  In order to avoid import duties in this case, I would expect that when you export the item you would need to declare it as a "temporary export" and then there is probably similar paperwork to allows you to reimport. Again, it would almost certainly require pictures and recording of the serial numbers.

 

Basically the same regulation they were talking about at the airports a few months back for export and reimport of personal items.  The issue there is that, assuming the customer actually keeps the item, I can imagine you will be unable to claim a VAT refund.

 

Seems the only good way around the issue would be a bonded warehouse where you keep manufactured items for export only. You would need to be the manufacture for that to work, or else buy from the manufacturer's bonded warehouse directly into your bonded warehouse. Once it enters Thailand, you can't get it back into the bonded system.

 

[Monomial]

One thing I just thought of with regard to the above.

 

*IF* you can resell the item, then you should be able to use the same system I discuss for repair of the item. I do not believe the item needs to ship back to the same person who sent it to you. When you resell to someone else, you should be able to claim back your deposit.

 

Next time this happens, explain to DHL that this is only a temporary import, and that you will be reexporting the item again. You need to make sure there is a unique serial number on every item you ship in order for this to work. But the mechanism *IS* in the law. You just need to push until they allow you to do it. It is a bunch of work for you and for them, so there will likely be resistance to the process, but the regulation does exist.