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Working in exports- no work permit


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Nathan -

Discard the 6 million baht figure - I'm not even sure where that came from.   You can start a Thai Private Co Ltd. and get a work permit and one-year extry permit extension with just 2 million baht paid in capital.  That is absolutely true - that is what I did.

Check out FAQ at BOI page -  you can start a BOI Promoted export manufacturing company with just one million baht, plus facilities:

http://www.boi.go.th/english/faq/index.html

You can start a Rep Office here (with Alien Business License valid for five years) with just one million baht paid in during first six months, another one million the next six months, and one million each year for the next three years - and this process automatically authorizes two work permits.

What sort of formal structure is needed for a specified activity is - to put it mildly - a controversial discussion topic (see above).  The financial requirements of different structures are well-defined however - not really matters of interpretation.

Steve

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The link doesn't seem to work. i'll go to the boi website though. I had always heard people discussing the need for 6 million baht registered capital in order to start a thai company. But perhaps its not that black and white. Thanks.
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mrentoul, yes it is obviously a complex subject. Of course I agree it would be better if in selling their handicrafts to exporters, the thais always made enough to grow the business, hire new people and what not. But around the world that does't seem to be the economic reality of it. They have something to sell and there are exporters happy to buy. They can charge more if they wish, but unless their product is substantially better or different from other suppliers, the exporters will simply buy from someone else.

In this way, the casual exporter is more or less a tourist, they just buy more. And I'll stick with my argument that the act of buying alone whether it be by a tourist or a casual exporter contributes to the thai economy and helps the thai people. If all the casual exporters and tourists stopped buying handicrafts in the north for instance, how would this assist thailand and who would come and buy all these goods AND do it in a matter that contributed in a more meaningful way?

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"Sunbelt- According to you then, the absolutley only way to do it legally would be to pay 6 million baht and set up a company or find employmnet with a thai firm (although I don't see how that would allow you to go out sourcing and shipping product) right?"

Who said 6 million to set up a company? Its 2 million baht to set up a company but it does not have to be cash.

As for ways to do it legal

1. 15 day exemption... see above. No requirement to have Thai company, paid up capital etc.

2. Work permit with a Employer

3. Forming a company and being the Employer and having the work permit.

As for having problems or not doing it without a work permit. It comes down to the circumstance.

Lets say you’re with a TG in a car accident. The Police ask you” what you do for a living or what are you doing in Thailand?  If you said “ Exporting “ Their question would be “ You have a work permit? “  “ Uh No…I was told I don’t need one” See what happens.

If you denied everything and said “on vacation.” Maybe no problem. However the Thai girl you’re with says in a separate conversation when asked “He sends stuff to England all the time and makes money from that” Now you could have charge of “obstruction of justice” for not telling the truth.

How bout the example of exporting and sending items with the post office. You don’t think they won’t be suspicious if you start sending boxes every other day. A Red flag goes up who is this guy? This is the  Customs Procedure For Postal Parcels: Export of postal items to foreign countries can be conducted at the post office nationwide in accordance with the regulations of the Communications Authority of Thailand without being inspected by the Customs officers under the following conditions:

1. 1.       Such items are not prohibited for export.

2. 2.       Such items are not subject to export license(s).

3. 3.       Such items are not subject to export duty or government fee(s).

4. 4.       Such items, regardless of the number of packing, are collectively valued at no more than  10,000 baht for each export or  

         valued of no more than 5,000 baht for precious stones, jewelry, gold and white gold jewelry.

5. 5.       Such items are not subject to duty drawback or duty compensation.

6.       Such items do not require a re -importation certificate.

         Postal items exported by mail, not falling under the conditions mentioned  in item nos. 1 – 6, are subject to fulfillment of export entry and checked  by the customs officers.

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Such items are not prohibited for export.

2. 2.       Such items are not subject to export license(s).

3. 3.       Such items are not subject to export duty or government fee(s).

Thank-you. I'd forgotten export duties, licences and the like! The government just might have a financial interest in the goods that casual exporters flog off overseas, even if the villager gets little return.

Nathan, I agree that casual exporters are sometimes little different from tourists...especially those that fail to declare goods!

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Okay thank you for your thoughts. 2 million baht got it. So if you need longer than 15 days and don't have two million baht, you need a thai company to hire you. How involved is this? Can I find a supplier I buy from and become 'employed' if they are willing to fill out the paperwork? If not, then is any small time exporter simply out of luck in LOS?
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Thank-you. I'd forgotten export duties, licences and the like! The government just might have a financial interest in the goods that casual exporters flog off overseas, even if the villager gets little return.

Nathan, I agree that casual exporters are sometimes little different from tourists...especially those that fail to declare goods!

There is no license that an exporter himself must hold to participate in the act of shipping products. (There is an import license you must hold should you wish to import here) However, of course the thai government has a financial interest in some goods that the casual exporter might 'flog' overseas. There are a number of products which require a license to be issued (for the goods, not the person) and many products that have tariffs placed on them. These are collected by the shipping agent and go to the thai government. Yet another example of exporters assisting the thai economy. And there are many, many products which require no license and have no tariffs. Why? Because the government realizes that the buying and exporting of these products helps the thai economy.

Of course I disagree with anyone who would not declare a shipment of goods which one should pay a tariff on. it would only be a matter of time before they get caught.

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These are collected by the shipping agent and go to the thai government. Yet another example of exporters assisting the thai economy
Yes, yes - got the propaganda bit, thank-you. The point being made was whether the casual exporters queued up at the post office or wherever have declared their goods and done all their paperwork. I bet in most cases they haven't. Greg put it better :
How bout the example of exporting and sending items with the post office. You don’t think they won’t be suspicious if you start sending boxes every other day. A Red flag goes up who is this guy?
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Yes, yes - got the propaganda bit, thank-you. The point being made was whether the casual exporters queued up at the post office or wherever have declared their goods and done all their paperwork. I bet in most cases they haven't. Greg put it better :

No propoganda intended. Exporters buying product from the thais who make it obviously helps the thai economy. I've yet to hear how it would be better if all tourists and casual exporters stopped buying here. (You mentioned that someone else would buy in a more meaningful way or the thais would export it themselves I think)..

As for casual exporters using the post office, I think it would be better to call them stupid exporters. it cost much more and takes much longer. Most use DHL,Fed Ex, UPS who all inspect your shipment and collect any relevant fees for the thai government. The tariffs that could be avoided by going through the post office only apply to some agricultural products and certain textiles. If anyone shipped large amounts of these through the post office, i would venture to say they would eventually be caught.

The export licenses apply to buddhas and antiques. Antiques, you're not going to send by the post office. Buddhas, you would eventually be caught and I have my doubts as to how many people are shipping substantial quantities of buddhas through the post office to avoid the export license.

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Exporters buying product from the thais who make it obviously helps the thai economy. I've yet to hear how it would be better if all tourists and casual exporters stopped buying here

I think I told you some time ago that I agree with these points. These are statements of the obvious and getting rather tiring.

What I don't like, and which most thinking people would object to, is people being exploited because their government lacks the ability to help them market their produce abroad. I think you'd agree with that too, Nathan, if you thought about it.

Given that the rule of law rarely seems to be enforced, in some ways the government has only itself to blame. You will continue getting backdoor ''exporters'' buying cheap and selling at home for big profits, with the people making the goods making very little out of the deal.

That guy I mentioned a while ago, the one proud of the fact that he did not have to deal with Thais, was in no doubt about what he was doing. Nor should you be.

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The letter of the law is rarely adhered to. You are eligible for the B visa. Trust me ......and even trust  oleGeorge hehehee

Dr. Pat Pong,

Are you saying that the non-im b visa would allow one to legally particiapte in the act of exporting assuming the consulate received a letter of these intents with your application?

This seems to be strongly disagreed with my other members who insist you need a work permit.

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What I don't like, and which most thinking people would object to, is people being exploited because their government lacks the ability to help them market their produce abroad. I think you'd agree with that too, Nathan, if you thought about it.

Don't get me wrong, I don't want to see any Thais exploited either. if I ever thought a supplier was being exploited or exploiting its workers, I wouldn't buy from them. But I do feel good about buying from the local villagers who have spent time creating a particular product, even if it only allows them to continue making 5,000 baht a month or whatever it may be. And they at least seem happy to exchange their work for money. I wish that the economic situation was such that the market price on these goods contributed towards lifting them into the middle class, but capitalism dictates otherwise. To be sure, there are also a number of success stories, of thais who have broken into the US market and hit it big time and for any thai that can do this, I am genuinely happy to see them succeed.

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mrentoul- I don't disagree with you entirely, but I think your argument applies more to the muti-nationals who wield enormous power and seem to abuse it in the sense they offer their workers in Asia very little, when they could in fact contribute more to the worker's lives and communities and still be a successful.  But I know the shareholders wouldn't go along with that plan.  That's is the result of the economic system we have created and I personally don't have any solution...

So does anyone know what visa is required to export from thailand? :laugh:

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I'm going to contiunue to try to inject common sense into a discussion that is full of bizarre advice.

Steve, Thanks for your input.

I fully respect your opinions, but some of your advices are dangerous. I have been living here for 15 years, both in the private and official sector, and my experience of what you are allowed to do differs from yours.

Could you please point me to an url or printed text that certifies what you are saying.

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There are certain regulations governing the import and export of goods into and out of Thailand. However, trade in certain items is restricted through outright prohibition, the imposition of duties or licensing requirements. Thus, the export of unmilled rice and rice bran is expressly prohibited. Other goods, such as rubber, timber, rice, hides and skins, silk yarn, and iron scrap may be sold to foreign buyers, but duties must be paid on them. To export certain items, such as gold, cattle, or sugar, one must secure a license from the relevant government authorities.

Import controls

The Ministry of Commerce designates classes of goods that are subject to import controls, which usually take the form of permission and licensing. Although these controls are being liberalised, at present more than 50 classes of goods require import licenses from the Ministry of Commerce. These categories are frequently changed through notifications from the ministry. A license to import any of the specified items must be secured from the Ministry of Commerce. Application for the license must be accompanied by a supplier's order, confirmation, invoice, and other pertinent documents.

In addition to the Act imposing the above controls, a number of goods are subject to import controls under other laws. These include:

- The import of modern drugs requires prior licensing from the Food and Drug Administration under the Ministry of Health.

- The Minerals Act stipulates that without appropriate permission, an importer is prohibited from importing tungstic oxide and tin ores and metallic tin in quantities exceeding two kilograms.

- The Ancient Monuments, Antiques, Objects of Art and National Museum Act provides that antiques or objects of art, whether registered or not, must not be delivered without permission from the Director General of Fine Arts.

- The Armation, Ammunition, Explosives, Fireworks and Imitation Firearms Act bars people from producing, buying, using, ordering or importing armations or ammunition or explosive devices unless they have the appropriate license from the Ministry of Interior.

- The Cosmetics Act stipulates that for the purpose of protection of public health, any importer of controlled cosmetics must provide the name and location of the office and the place of manufacture or storage of the cosmetics, the name, category, or kind of cosmetics to be imported, and the major components of the cosmetics.

Export controls

The Act Controlling the Importation and Exportation of Goods authorises the Ministry of Commerce to subject products to export control. At present, close to 50 items require such control.

Certain goods require export licenses under other laws, such as seeds, trees, and leaves of tobacco.

Certain goods, such as sugar and rice, are subject to export licenses under the Export Standard Act, which aims to ensure that such exports are of a set quality.

In addition, the exporters of agricultural commodities may find that membership to trade associations is mandatory. These associations may in turn impose their own regulations for membership.

By the way, FedEx, DHL will ask for your import export license in some cases if you are shipping on a daily basis.

As for postal, lets say they open up the box to see if you are shipping Buddha images. They see leather belts. You come in two more days and they see more belts. Foreigners always think that no one notices them but Thais watch the movements of us and have a great memory.

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No George, I can't show you a URL.   I've only been working here since May 1995 - for five years as a non-resident, just hubbing here as a regional sales manager, and now 3+ years as a resident.

Even if I stretch my imagination to try to think of a scenario where a guy could possibly get in trouble here "working" as a lone ranger, searching out, coordinating, and shipping Thai goods overseas - my brain cannot come up with even a stretched scenario.

In my posts above I have gone to extraordinary lengths to try to illustrate how there simply would be no evidence of illegal work for a policeman to hold against you in court, even if he had 100% photographic and documentary evidence of virtually everything the "felonius worker" did here.

As far as Thai officialdom is concerned, the actions of shopping and shipping from here are effectively a hobby - not employment.

I cannot fathom how you, and Greg, and the alias bunch here can - with straight face - tell the audience that the original poster - if he proceeds - is in mortal danger of arrest, detention, and deportation.  How can any of you say that?

Inefficient as many of the bureaucracies here are, no one in Thai officialdom has time to prosecute as crime the trivial, unremarkable actions of some American guy working here - presumably out of a hotel room or apartment - doing activitiesthat could be observed 16 hours per day without even one of them setting the guy apart from 1,000 other visiting foreigners - bustling around.  If the thought even vaguely crosses a policeman's mind, the default assumption is that Mr. Export has a work permit, and is proceeding legally.  Thai police NEVER randomly challenge industrious looking westerners who seem to be busy with respectable pursuits.

If you or the rest think otherwise,then I don't know where you have been spending your time. My residence here has been in lower Sukhumvit - Soi 3, then Soi 13, then the connecting road between Sois 4 and 6, and now Soi 8.

For people who say you cannot work here on a Class O visa - wrong.  I formed my company - that means every single paper and ministry application - Labor, Immigration, Revenue, Social - with only a Class O visa.  Many dozens of copies of my passport and Class O visa went everywhere they could go.  Never a peep, never a ripple.  This was March 2002.  

Based on posts I have read above, I have already crossed several folks off permanently as complete morons - and frankly George - several of them appearing to have official positions running your board - several of them have demonstrated impoliteness, unprofessionalism, and immaturity that is downright astonishing to appear on what otherwise seems to me to be a fairly professional discussion forum.

Several people have said that my statements are dangerous - and I still haven't heard a credible whisper of any "proposed confrontation script" that could pose a danger to the original poster.  Through ommission of any "straw man" example, I am convinced that even the naysayers are at a complete loss as to how to write a minute-by-minute script of the start of a "doomsday incident" that would land Mr. Exporter in jail.

If a disgruntled bargirl wants to nail Mr. Export by having her policeman brother-in-law bust him - they aren't going to use a mythical job violation to do it.  They will plant drugs on him, or pull some other stunt.  But no policeman is going to drag Mr. Export into the police station on charges of "illegal employment" - with no possibility of any credible evidence - for the simple reason that the policeman would look like a total horses ass to his mates.   'Might as well arrest him for farting.

I'm likely the only poster in this thread who has walked into Lumpini Police Station on a Saturday afternoon (January 2001), in a suit and tie, with translated assault charges in hand, and formally filed charges against a Thai woman.  After some bewilderment and about an hour of them trying to get me to go away, they sent a policewoman to pick up the subject.  She was brought to the station, questioned, charged, plead guilty, and was fined on the spot. My passport was scrutinized microscopically, the lady did everything in her power to #### me to the stars.  I was living here on a Class O visa, working for a US company as regional sales manager, no work permit, paid to a US bank - and this was completely disclosed and chewed on - by the desk sergeant, and - all in all - by maybe 20 policemen (shift change).  They all decided the whole thing was a great chuckle.  No way did they care or perceive me to be "working here illegally".  I had maybe 80 pairs of Thai entry/exit stamps, as well as maybe 100 pairs from other countries.  My TM card at that time was probably 10 days old.  They recorded my address in Bangkok.  My business card (as Asian Technical Mananger) had a Bangkok address.   But there was no way that they viewed me as being employed in Bangkok.  No mention whatsoever about a work permit.

 

Driving my company car around Bangkok - and Korat, and Saraburi - I was pulled over maybe five times for police shakedowns - my Thai drivers license, and ownership, and insurance papers looked at.  I was never asked for my passport, or my work permit.

Getting my Thai drivers license, I was asked for a work permit, and when I explained that I lived in Bangkok, but worked regionally for a US company,and was not paid by the local Thai office of my company - that was fine with them.

They simply do not have a problem with Americans who live here and "work", but not for a Thai employer.

I have frankly never heard of a "normal" policeman asking anyone for a work permit - ever.  Passport yes - occasionally.   Except for when I filed charges at the police station, or was applying for some sort of permit, I have never carried a passport in Thailand, other than when I needed one to check into hotels (which is a  pretty consistent requirement) - my Thai driver's license has ALWAYS been satisfactory in all other situations.

I laughed today when the new (future) farang salary minimums were announced - thinking of the thread where Greg had cited his Thai lawyers saying my numbers (60,000 baht for a low-level "pass") were bad.

I am in the business - day in, day out.  I know the rythyms of Immigration, Labor Minstry, Revenue Department, Customs Department.  I know that there are occasional wild eruptions and bizarre twists and turns.  But mostly, things are predictable.  In the world I live in, vindictive bargirls don't go after self-employed exporters for work permit violations (I fell on the floor laughing when I first read that scenario).  Neither do street cops, or airport immigration officials.

Common sense goes a long way in Thailand.  Let's see some more here!

I'm off to Mukdahan for the next four days - to visit the convicted lady, and our three year old son.  So - you get rid of me for a while.

Amazing traffic levels on this board.  I cannot believe the number of private e-mails I have received as a result of this one thread.

Cheers!

Steve

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"As far as Thai officialdom is concerned, the actions of shopping and shipping from here are effectively a hobby - not employment."

Sorry Steve, I had our lawyers call" just to doublecheck" with the labor board. Their stance is a work permit or 15 day exemption is needed( purchasing is even listed as work you can do as urgent)  Can someone else please call them and see what answer they get. To say thats the official stance, thats not my understanding. Heres someone who agrees..

http://www.asiatradingonline.com/lawfaqs.htm

It states...

Exporting:

Do you need a license? Yes. Do you need a company? Yes      Do you need a work permit? Yes

What license do I need? An  export license. Cost:10,000 baht

What if I want to export commodities? You need 2 licenses 10,000 baht. To export rice you need to do a special license in Bangkok.

"I laughed today when the new (future) farang salary minimums were announced - thinking of the thread where Greg had cited his Thai lawyers saying my numbers (60,000 baht for a low-level "pass") were bad."

Actually you had stated 50,000 and its 30,000 Baht is required now for a Single person who needs to pay 18,000 Baht per year in taxes. Things do change from day to day. Now they are saying 60,000 for Americans, Canadians and Japanese by July 10th of next year,  By the way, most multi firms just have to hire Vietnamese only, its only 25,000 Baht for them!

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By the way, FedEx, DHL will ask for your import export license in some cases if you are shipping on a daily basis.

Hi Sunbelt,

Could you clarify this? I've spoken at length with the export promotion centre here and they mirror what you have said as far as certain items being subject to tariffs and duties. However, no license is required by the exporter himself to simply participate in the act of shipping product. However, depending on which country you are shipping to, you may or may not be required to have an importers license to show the relevant authorities there. But for the US for instance, for the vast majority of goods you are free to import at will, while of course paying duties and shippiong within all the bull#hit textile quotas etc. On the other hand, I believe you are required to have a license to import goods to thailand, but we're talkiong about exporting. So why would UPS, FedEx, DHL ask to see your import export license? Maybe this belongs in a new thread?

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However, no license is required by the exporter himself to simply participate in the act of shipping product.

That's contrary to the legislative stuff you saw above, which said that more than 50 items require licences, permits and the like (many more than you were prepared to acknowledge in  a previous post, Nathan).

But as more than one poster has said already, there may be a big difference between the law as it exists and the law as it is applied. The question for you is whether you want to do it the legal way and minimise risk, or do it the informal way Indo-Siam is advising (and many others, it seems).

It seems in most cases you can get away with doing it the informal way. If that's your choice then good luck to you.

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WOW -- This has been an interesting topic with viewpoints all over the place. So basically you need a 15 day urgent, or a non-imm B, OR set up a company with 1 million baht initially with incremental additions. Plus an exporters license. Is this about the sum of it? I think some of us are more confused than when the topic started?

:cool:

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You sum it up very well Mrentoul, well done. You can do it legal or informal. The decision rest with the individual. Odds are informal, no problem for most people. However I would estimate some could have some restful nights. It could be higher. Let me use this example... Police have been known to accept bribes as their pay is low. Everybody does it. Was it legal? No but it was understood that was the way it is in Thailand. Now the boat is rocking with the current expose. Blame is being thrown their way and the spotlight is on. If this same spotlight ever happen on foreigners on tourist visas and they feel you are not paying tax. Do you want the spotlight on you? What risk you want to accept, now in your life, knowing it could happen in the future? The decision is yours. As the song says " It's your life!"
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If this same spotlight ever happen on foreigners on tourist visas and they feel you are not paying tax. Do you want the spotlight on you? What risk you want to accept, now in your life, knowing it could happen in the future?
Thank-you for your comments. No, I wouldn't like to like the risk myself, but then I'm a cautious type.

I know it's commonplace to pay bribes. I know of another guy who runs a business similar to yours. He's only been here six months and is already paying bribes to local police to look after his place and his business!

I'd rather do it the legal way. The only problem, really, is competitive disadvantage. Doing it the legal way may cost more than doing it the informal way, though the cost may not be that much bigger in the end, and you might sleep better at night.

So basically you need a 15 day urgent, or a non-imm B, OR set up a company with 1 million baht initially with incremental additions. Plus an exporters license. Is this about the sum of it? I think some of us are more confused than when the topic started?

It does seem that way, doesn't it?

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However, no license is required by the exporter himself to simply participate in the act of shipping product.

That's contrary to the legislative stuff you saw above, which said that more than 50 items require licences, permits and the like (many more than you were prepared to acknowledge in  a previous post, Nathan).

Guys, you're getting way off topic here. But if it helps, i've been shipping from Thailand for a number of years. There is no license that the shipper must have personally. BUT, as mrentoul says, there are over 50 products which require a license. NOTE:

This does not mean some kind of general license for the person to be allowed to participate in exporting, this means a license for the particular goods. A few come to mind, namely teak and antiques. Anyway, I hope that helps and are we close to coming to a conclusion on this visa requirement for exporting? I won't get into my personal details, but I am finding this discussion interesting.

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You sum it up very well Mrentoul, well done. You can do it legal or informal. The decision rest with the individual.

I don't know what all this talk is about being able to export informally. If you take your product you want to export to any shipping company is in thailand, you will be forced to comply with the regulations that are in place. i.e paying tariffs on any relevant items, getting export licenses on any relevant items. SO there is no option  of doing it informally and skirting the law apart from not declaring your product or trying to get it through the post office. With both methods, you would likely be caught. An interesting topic, but maybe it should be started as a new thread if people want to discuss it further.

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So basically you need a 15 day urgent, or a non-imm B, OR set up a company with 1 million baht initially with incremental additions. Plus an exporters license. Is this about the sum of it? I think some of us are more confused than when the topic started?

It does seem that way, doesn't it?

I don't think this has even been agreed on. You've got some people saying a non-im b is enough. You've got others saying a non-im b does not allow you to do business, it only allows you to apply for a work permit. you've got others saying you must start a company and get a work permit. You've got some saying its okay to do on a tourist visa. So at the end of the day, it doesn't look like we will reach a conclusion everyone agrees on.

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However, no license is required by the exporter himself to simply participate in the act of shipping product.

That's contrary to the legislative stuff you saw above, which said that more than 50 items require licences, permits and the like (many more than you were prepared to acknowledge in  a previous post, Nathan).

Did you read the legislative stuff before? It said that you need a license for 50 plus goods. This is a license for the goods themselves. This is not a little card they give you with your picture on it that says, 'Thai Exporter-Certified and Legal'. However, for the thousands of other goods that don't require a license (most that do are agriclutural, which ensures that the thai population has enough of everything before people start shipping it abroad) you can walk into your local Fed Ex and ship to your heart's content. You may pay tariff's if tariff's are in place. You may pay duties in your home country. To all of you interested in exporting who don't know what to think, go to the local export promotion centre if one is nearby or go to Fed Ex and ask. I promise you that you will not be told you need a broad license to particiapte in exporting. If you want to import, that's a different story and you will need a license.

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You've got some people saying a non-im b is enough. You've got others saying a non-im b does not allow you to do business, it only allows you to apply for a work permit. you've got others saying you must start a company and get a work permit. You've got some saying its okay to do on a tourist visa. So at the end of the day, it doesn't look like we will reach a conclusion everyone agrees on.
Hey, give us time...it's only been a few days!
Did you read the legislative stuff before? It said that you need a license for 50 plus goods. This is a license for the goods themselves.

Sorry, misread your post. Licences are required for products, not the person doing the exporter to say he is a certified exporter or whatever. Got it.

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