Just thought to post this one here to clarify import duty calculations,,

 

I’d have thought import duty rates refer to a % of the cost of the actual item being delivered,

 

However it seems that import duty is calculated by taking the % from a combined total of item cost + freight costs + insurance costs.

Maybe someone who is more familiar with importing items can confirm if this is correct ? 

I certainly paid duty on the CIF (cost, insurance + freight) figure on a set of lawn bowls.

I think they then put VAT on top as well.

I havent import anything to thailand.I send gifts to my lady worth about 40.000 bath.I said documents and 2 items worth less then 1000 bath.I was no problem..the gifts arrived after 2,5 days,and was delivered to my lady .(DHL)

Things that I've imported I've never had the insurance and shipping costs taken into account by Customs.  Just 10% (I believe the rate can vary depending on what the goods are) on the declared value (duty) then 7% on the combined value (VAT).  So THB 5,000 declared value would be THB 500 in duty then 7% on THB 5,500 = THB 385.  Total 5,885.  Anything under THB 1,500 is exempt but I've had several packages above that value ignored too.  Depends on how busy / bothered they are I guess.  Just avoid using couriers if at all possible.

There is the technical answer and the practical answer.

 

Practical answer: Whatever the person who deals with it on the day deems appropriate. You are always able to challenge it if you dont accept it.

 

DO NOT use a courier whenever possible.

5 minutes ago, CharlieH said:

There is the technical answer and the practical answer.

 

Practical answer: Whatever the person who deals with it on the day deems appropriate. You are always able to challenge it if you dont accept it.

 

DO NOT use a courier whenever possible.

Absolutely correct. I only import container loads so leave it all to an agent. For a small shipment I would just ask what the 'rate' is and then negotiate. Depends where it lands as to what you will experience. I've used 3 different entry points and one of them cost me nearly a million baht because they 'created'  a 'rule' that I should have been aware of. 

Duty and Vat are based on CIF. This is the same in just about every country in the world.

 

Otherwise everyone would sell items for 99 cents with 100 dollars shipping cost, and nobody would have to pay any duty at all.

1 hour ago, SooKee said:

Things that I've imported I've never had the insurance and shipping costs taken into account by Customs.  Just 10% (I believe the rate can vary depending on what the goods are) on the declared value (duty) then 7% on the combined value (VAT).  So THB 5,000 declared value would be THB 500 in duty then 7% on THB 5,500 = THB 385.  Total 5,885.  Anything under THB 1,500 is exempt but I've had several packages above that value ignored too.  Depends on how busy / bothered they are I guess.  Just avoid using couriers if at all possible.

Ok although this delivery was valued at only 1300, still was sufficient value to incur the Duty, in fact the full invoice was almost double the cost of the contents,

 

absolutely no issues for me since I claim back these costs anyway, I think in more than 10 years living here I may have faced this on one other occasion so not something I do on regular basis,  but just posted to try to have an understanding of the procedure and how it works.

thanks for all the replies.

4 hours ago, jonnyscot said:

Ok although this delivery was valued at only 1300, still was sufficient value to incur the Duty, in fact the full invoice was almost double the cost of the contents,

 

absolutely no issues for me since I claim back these costs anyway, I think in more than 10 years living here I may have faced this on one other occasion so not something I do on regular basis,  but just posted to try to have an understanding of the procedure and how it works.

thanks for all the replies.

Was that using a courier?  It's certainly not normal.  Unless what was in the package qualified for a higher rate.  THB 1,300 would normally not get hit at all.