Free trade agreement between Thailand and China?

[simon43]

I think there is one, based on my receipt of goods sent from China over the past decade.  No import tax was levied by Thai customs.

 

Now (unfortunately), a supplier in China has sent me something by UPS (why oh why didn't they use China Post?!).  Of course, UPS is now holding said item for 'ransom', demanding payment of customs duties.

 

I used to have the link to the online database which indicated what import tax (if any) would be due on different kinds of items that are imported into Thailand from China. 

 

Does anyone know the link?  I want to double-check the tax situation for my item before I 'do battle' with UPS.

 

Thanks

[jippytum]

i'll have number six. Sweet and sour pork and a portion of chips. 

[Andycoops]

Hard luck, that's what you get dealing with chinese scum.

[AndreasHG]

You can read here the changes to the VAT regime enforced by the Thai customs: Thailand makes key interim changes for collection of VAT/excise tax on Low-Value Goods imports | EY - Global

 

In a nutshell:

"LVGs [i.e. low-value-goods] [...] are defined [...] as goods valued at not more than 1,500 Thai baht".

The "import of LVG into Thailand is specifically exempted from duty" and "from the 7% VAT".

However, from "5 July 2024 to 31 December 2024" "the import VAT exemption applies only to LVG valued not exceeding THB 1. For goods valued over THB 1 but not exceeding THB 1,500, import VAT shall be levied and collected by Thai Customs". These goods are still exempted from Import Duty.

My guess is that UPS is charging you the 7% VAT.

 

It is not yet clear what will happen after 31 december 2024 (TIT).

 

Edited September 25 by AndreasHG

[simon43]

16 hours ago, Andycoops said:

Hard luck, that's what you get dealing with chinese scum.

Unfortunately, the Chinese scum was the only supplier of this item that I found.....

 

FYI, it is a carbon-fire, telescopic fruit-picking pole of 21.6 metres in height.  No, I have no fruit growing 21.6 metres above the ground, but I do have a wire radio antenna for my ham radio hobby that needs to be mounted as high as possible 🙂

Edited September 26 by simon43

[simon43]

13 hours ago, AndreasHG said:

You can read here the changes to the VAT regime enforced by the Thai customs: Thailand makes key interim changes for collection of VAT/excise tax on Low-Value Goods imports | EY - Global

 

In a nutshell:

"LVGs [i.e. low-value-goods] [...] are defined [...] as goods valued at not more than 1,500 Thai baht".

The "import of LVG into Thailand is specifically exempted from duty" and "from the 7% VAT".

However, from "5 July 2024 to 31 December 2024" "the import VAT exemption applies only to LVG valued not exceeding THB 1. For goods valued over THB 1 but not exceeding THB 1,500, import VAT shall be levied and collected by Thai Customs". These goods are still exempted from Import Duty.

My guess is that UPS is charging you the 7% VAT.

 

It is not yet clear what will happen after 31 december 2024 (TIT).

 

The goods are valued at about $250 USD, 8,000 baht or so.  After informing the UPS caller about the ASEAN-China Free Trade Agreement, which exempts my goods from import tax, UPS has released the goods for delivery BUT will only hand them over to me if I pay about 1,500 baht to the delivery driver.

 

God knows where that figure comes from. I can either refuse the goods or pay the 'ransom' fee.  Since, as stated above, the Chinese scum is the only supplier, and since I would have minimal/zero chance of getting a refund from that supplier, I have little choice but to hand over the money.

[simon43]

Well, I met the UPS guy and had to pay 1,043 baht.  The import statement says that about 500 baht of that was import tax (why??), plus service fees plus VAT etc.

 

However, the good news is that this pole from the Chinese 'scum' seller is of great quality, well-made and well-packed.  I've already used it to lift a wire over a 15 metre tree 🙂

[AndreasHG]

3 hours ago, simon43 said:

God knows where that figure comes from.

 

All goods are classified into Customs Codes. You may learn what they are here:

HS Code Definition | UPS Supply Chain Solutions - United States

 

Thailand customizes the HS codes, adding additional digits after the harmonized code. See here for more info: PowerPoint Presentation (bot.or.th)

 

Import duties are calculated based on the CIF cost, the HS code specific to the imported goods and the country of origin (only if a certificate of origin has been issued by the exporter). 

 

[simon43]

11 minutes ago, AndreasHG said:

 

All goods are classified into Customs Codes. You may learn what they are here:

HS Code Definition | UPS Supply Chain Solutions - United States

 

Thailand customizes the HS codes, adding additional digits after the harmonized code. See here for more info: PowerPoint Presentation (bot.or.th)

 

Import duties are calculated based on the CIF cost, the HS code specific to the imported goods and the country of origin (only if a certificate of origin has been issued by the exporter). 

 

I know all about HS custom codes, and if I check the specific customs code for that item, the tax (like almost any type of goods imported from China under the ASEAN-China FTA), is listed as exempt from all taxes 🙂

[Alldar]

45 minutes ago, simon43 said:

I know all about HS custom codes, and if I check the specific customs code for that item, the tax (like almost any type of goods imported from China under the ASEAN-China FTA), is listed as exempt from all taxes 🙂

One thing is the import tax/custom duties and second thing is VAT which is now being collected irrespective of import tax/custom duties. 7% VAT is now applicable

[HauptmannUK]

The situation is confusing.

In the past couple of weeks I have had about half a dozen items arrive from Chinese suppliers with values between ฿500 - ฿6000..   No taxes or fees charged. In each case the tracking suggests that the package went via a 'transit country'. In Thailand they were handled by Flash. First tracking point in Thailand was Khon Kaen...

 

Yesterday I received some car parts from Japan. Value ฿2000.  The package was sent by Japan Post and appeared in Thailand at 'Laksi Mail Centre'. Then went to customs for a day.  Was then delivered by Thailand post. No charges, fees or taxes...

[simon43]

2 hours ago, Alldar said:

One thing is the import tax/custom duties and second thing is VAT which is now being collected irrespective of import tax/custom duties. 7% VAT is now applicable

My UPS invoice lists:

 

Disbursement fee = 249 baht (taxable charges)

Duty = 445 baht (non-taxable charge)

VAT = 788 baht (non-taxable charge) on a declared value of $90 USD (2,924 baht)

 

7% of 2924 = 205 baht.  (Clearly Thai maths is different from other countries...)

 

 

 

[Alldar]

11 minutes ago, simon43 said:

My UPS invoice lists:

 

Disbursement fee = 249 baht (taxable charges)

Duty = 445 baht (non-taxable charge)

VAT = 788 baht (non-taxable charge) on a declared value of $90 USD (2,924 baht)

 

7% of 2924 = 205 baht.  (Clearly Thai maths is different from other countries...)

 

 

 

That doesn't make sense. VAT should be 7%. Maybe they used different value than declared value? Sometimes they might do this if the declared value doesn't seem real. Hard to say. You can try to ask them to provide an explanation.

Edited September 26 by Alldar