Import Duty Issue

[gerryBScot]

If this is in the incorrect place please move it.

I need some advice on this issue: I purchased a telescope (value c £2,000) in the UK about 18 months ago while back on a short trip. UK VAT paid. I brought it back to Thailand and did not declare it to customs on re-entry. Didn't think I had to as I was on, and still am on, a non-immigrant visa. Non-b with work permit. The telescope now needs a repair and has to go to Japan for this. I have been dealing with the European part of the operation about this who have advised me to deliver it to the Thai agent for forwarding to Japan. I have spoken to the Thai agent today and he has intimated that Thai customs are likely to levy import duty on the telescope when it is returned to me here in Thailand. He is currently talking to Japan about this matter. Can any one here offer some advice or had experience of this or a similar situation? Many thanks.

[Mario2008]

During your first year of staying in thailand, if you have an extension of stay, you can import one freight by air and one freight by land or sea duty free containing used household itens, in essence older than 6 months. These you still have to decleare, but don't pay duties. It is usually noted in your passport.

Don't know what the deal is with sending items for repair abroad.

[digitalchromakey]

I suspect that you might well be liable for import duty.

As an illustration of customs logic, a Thai friend of mine shipped 20 odd Kg of locally bought Thai silk to a friend in France who wanted to sell it; the friend did not sell the silk and eventually shipped it back to Thailand. My friend was then charged significant import duties, in part because there was no documentary evidence that the silk was originally bought in Thailand.

So I guess for such a telescope, without a Thai sales invoice, you might well have to pay import duty when it comes back from Japan.

[CharlieH]

I suspect that you might well be liable for import duty.

As an illustration of customs logic, a Thai friend of mine shipped 20 odd Kg of locally bought Thai silk to a friend in France who wanted to sell it; the friend did not sell the silk and eventually shipped it back to Thailand. My friend was then charged significant import duties, in part because there was no documentary evidence that the silk was originally bought in Thailand.

So I guess for such a telescope, without a Thai sales invoice, you might well have to pay import duty when it comes back from Japan.

My experience is somewhat different, having sent items out, if items are sent back to Thailand and clearlly marked "RETURNING ITEM" then I have never had to pay import duty, the ONE occasion it wasnt marked they tried to make me pay import duty but I refused to pay it and showed the despatch note when it was sent out from Thailand and they accepted that I had noot purchased it and had nothing to pay. They had no interest in how old the item was or its value or where it orginally came from only that it was coming into Thailand and I could show I had sent it out and it was returning.

Hope that makes sense, my advice would be go talk to the relevant office and get it from the horses mouth but make it clear you are sending it OUT and it is returning to you and you have NOT bought anything.As I understand it the import duty is liable on PURCHASES made outside the country.

Household items from migration are a different ball game entirely. (as I understand it).

[tombkk]

I suspect that you might well be liable for import duty.

As an illustration of customs logic, a Thai friend of mine shipped 20 odd Kg of locally bought Thai silk to a friend in France who wanted to sell it; the friend did not sell the silk and eventually shipped it back to Thailand. My friend was then charged significant import duties, in part because there was no documentary evidence that the silk was originally bought in Thailand.

So I guess for such a telescope, without a Thai sales invoice, you might well have to pay import duty when it comes back from Japan.

My experience is somewhat different, having sent items out, if items are sent back to Thailand and clearlly marked "RETURNING ITEM" then I have never had to pay import duty, the ONE occasion it wasnt marked they tried to make me pay import duty but I refused to pay it and showed the despatch note when it was sent out from Thailand and they accepted that I had noot purchased it and had nothing to pay. They had no interest in how old the item was or its value or where it orginally came from only that it was coming into Thailand and I could show I had sent it out and it was returning.

Hope that makes sense, my advice would be go talk to the relevant office and get it from the horses mouth but make it clear you are sending it OUT and it is returning to you and you have NOT bought anything.As I understand it the import duty is liable on PURCHASES made outside the country.

Household items from migration are a different ball game entirely. (as I understand it).

What was the value of those "returning items"? It seems like everybody could just write this into the documents, and then nobody would pay import duties any more!

If you send out an item that will be returned back to Thailand later, you need to send it out on "temporary export". When it arrives back, you have to present that temporary export declaration to match with you import declaration.

Now, for this telescope, if the OP sends it out of temporary export, they will certainly ask for the original invocie showing that he bought it here. If he didn't, he should have an import declaration showing that he paid import duties when he brought it in from overseas.

Yes, on a new work permit he is entitled to one shipment of household goods to be imported with tax exemption. This shipment can be split into one airfreight shipment and one seafreight shipment, but he would have to declare that a seafreight shipment will follow when he clears the airfreight shipment. Nevertheless, he has to declare all items even though he will not have to pay import duty (with exceptions). If this telescope was not declared, it was technically smuggled in.

So, if he sends it out without an temporary export declaration, he will pay import duties when it comees back. Makes sense. If he tries to do a temporary export, they will ask how this item got into Thailand in the first place. That's quite normal and in fact the duty of the customs office all over the world.

[gerryBScot]

I suspect that you might well be liable for import duty.

As an illustration of customs logic, a Thai friend of mine shipped 20 odd Kg of locally bought Thai silk to a friend in France who wanted to sell it; the friend did not sell the silk and eventually shipped it back to Thailand. My friend was then charged significant import duties, in part because there was no documentary evidence that the silk was originally bought in Thailand.

So I guess for such a telescope, without a Thai sales invoice, you might well have to pay import duty when it comes back from Japan.

My experience is somewhat different, having sent items out, if items are sent back to Thailand and clearlly marked "RETURNING ITEM" then I have never had to pay import duty, the ONE occasion it wasnt marked they tried to make me pay import duty but I refused to pay it and showed the despatch note when it was sent out from Thailand and they accepted that I had noot purchased it and had nothing to pay. They had no interest in how old the item was or its value or where it orginally came from only that it was coming into Thailand and I could show I had sent it out and it was returning.

Hope that makes sense, my advice would be go talk to the relevant office and get it from the horses mouth but make it clear you are sending it OUT and it is returning to you and you have NOT bought anything.As I understand it the import duty is liable on PURCHASES made outside the country.

Household items from migration are a different ball game entirely. (as I understand it).

Thanks for your replies, very helpful indeed and I now understand the position with the temporary export certificate. So how much might I be charged on this item with an approximate value of £2,000 GBP? This might help me in deciding if I should continue my career as an international smuggler and go to Japan and pick it up when the repair is done and carry it back in as personal property!

What was the value of those "returning items"? It seems like everybody could just write this into the documents, and then nobody would pay import duties any more!

If you send out an item that will be returned back to Thailand later, you need to send it out on "temporary export". When it arrives back, you have to present that temporary export declaration to match with you import declaration.

Now, for this telescope, if the OP sends it out of temporary export, they will certainly ask for the original invocie showing that he bought it here. If he didn't, he should have an import declaration showing that he paid import duties when he brought it in from overseas.

Yes, on a new work permit he is entitled to one shipment of household goods to be imported with tax exemption. This shipment can be split into one airfreight shipment and one seafreight shipment, but he would have to declare that a seafreight shipment will follow when he clears the airfreight shipment. Nevertheless, he has to declare all items even though he will not have to pay import duty (with exceptions). If this telescope was not declared, it was technically smuggled in.

So, if he sends it out without an temporary export declaration, he will pay import duties when it comees back. Makes sense. If he tries to do a temporary export, they will ask how this item got into Thailand in the first place. That's quite normal and in fact the duty of the customs office all over the world.

[CWMcMurray]

If you are sending out for repair, then you should not need to pay import duty at the time the goods are returned and re-imported. (as long as the process is done correctly).

- You must do formal export customs (that means no post office,DHL,UPS courier).

- You must tell your forwarder that the goods are being exported for repair, so that they can note at the time of export.

- You must keep all docs from the time of export (invoice / packing list / AWB / export entry)

- If telescope has a serial number, this should be on export docs and photos should be taken of goods at the time of export.

- At the time of re-import, the invoice should be identical in description and value (including serial number), with one exception... a separate line item should be added to the invoice for "Repair cost"

- At the time of re-import into Thailand (also must be formal customs processing), import duty is only payable on the "repair cost" not the actual value of goods.

[CWMcMurray]

Separate issue... so separate post...

You will need to have your forwarder check with Japanese side as well. It is entirely possible that import duty may need to be paid when importing goods into Japan.

You should be asking your forwarder:

What are the requirements for temporary import into Japan?

What is the normal duty and tax rates for this commodity?

Can a bond be placed with Japanese customs that can be refunded at the time of re-export from Japan?

After having the above answers, if you find that import duty would need to be paid or if a bond would need to be placed with customs, I would then go back to the UK company that you bought the goods from and advise them of the situation and ask there advise on how to proceed as this may be something that they have faced in the past.

[gerryBScot]

If you are sending out for repair, then you should not need to pay import duty at the time the goods are returned and re-imported. (as long as the process is done correctly).

- You must do formal export customs (that means no post office,DHL,UPS courier).

- You must tell your forwarder that the goods are being exported for repair, so that they can note at the time of export.

- You must keep all docs from the time of export (invoice / packing list / AWB / export entry)

- If telescope has a serial number, this should be on export docs and photos should be taken of goods at the time of export.

- At the time of re-import, the invoice should be identical in description and value (including serial number), with one exception... a separate line item should be added to the invoice for "Repair cost"

- At the time of re-import into Thailand (also must be formal customs processing), import duty is only payable on the "repair cost" not the actual value of goods.

Thanks for this much appreciated.