Duty Rates On Things From Abroad

[msg362]

For the last few years I've been buying computer/photo kit from B+H, a big dealer in New York. Until this time, I've always used UPS ( United Parcels Service) fast, the cheapest but always duty etc has been about 13% of the total costs.

This time I used USPS ( American post office). Ordered Last Thursday 19th ( $328), notification today that it's at the post office and I must pay duty( 580Baht)( 4 days to arrive). But it's only 5.9% On expensive kit, this is a big saving. USPS was marginally more expensive than UPS but is trackable and the saving in duty more than outweighed that.

I think this is a relatively common experience. Don't ask me why they are so different, TIT.

Edited April 23, 2012 by msg362

[Langsuan Man]

They are different

because UPS, DHL, and FEDEX pay customs duty based upon the whole container that is shipped here (averaged to expedite it) , With USPS duty is only charged per piece based upon the value of the item (as indicated on the Customs Label) or what is actually in the packaged if opened by Royal Thai Customs

Many people pay no duty when using United States Postal Service but I have never heard of anyone not paying some Customs Duty when using the international express shippers

[p_brownstone]

You will always pay Duty (and VAT) when you use a Courier Company to import things into Thailand (and use them to Clear the shipment through Customs - but see below).

If you use USPS or the ordinary mail service from whatever the originating Country is you have a good chance of not paying Duty / VAT at all - but it's a lottery. My wife Imported some Lego from Germany recently and had it split into 5 packages, shipped separately - only 1 was charged Duty / VAT and we had to go to Prakhanong Post Office to pay the charges and collect the parcel. All the other 4 parcels were delivered direct to our door by the usual Postman and no charges whatsoever.

Any Courier Company will simply accept whatever Duty Rate the Thai Customs Department decide to impose on your shipment - and it may well be incorrect. The Courier Company does not care what the Duty is, they are going to pass it directly on to you, the Customer anyway (therefore why should they waste their staff time in disputing it? There is absolutely no benefit to them).

If you Import regularly and want to use Courier Companies because of the Tracking / Insurance facilities it's best to appoint your own Customs Clearing Agent here in Thailand. When the Courier Company advises you that your shipment has arrived you arrange for your Agent to collect the Documents from the Courier Company and tell them - your Agent - what the Customs Tariff code - and therefore the Duty percentage - should be. They will pass this on to the Customs Department and get the correct Duty charged (assuming the Customs Department agree with your classification of course).

Patrick

[msg362]

Thanks,

I got to the conclusion that I paid 7% VAT ( goods valued at 8000 Baht, paid 560 Baht VAT and 20 baht for something or other!) on the value of the goods, but no duty/VAT on the carriage costs which are included when using UPS etc. From now on USPS/ Thai post it is!

Edited April 24, 2012 by msg362