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Posted

I'm interested in finding out how viable running a small exporting business out of Thailand would be.

The Story:

My wife is Thai native/Us Citizen and after 15 years in the States she wants to tray and go home to care for her elderly parents, we're trying to think of ways that we can do that. Exporting is an idea we keep coming back to. The idea is to buy Handicrafts, furniture, rugs..etc....and then sell them in flea markets in the United States. My parents are avid flea marketers and are retired. They have means to store, transport and sell for us year round. Flea markets are not big money, we know this. We only wish to make a living, and purchase a small economical Leer Jet. The jet could be optional.

There is a right way to do these kinds of things, and finding that way in Thailand can be a convoluted process. Usually filled with many tempting and shady ways to get around it. I would much prefer the right way. That means filling the forms, paying the fees, and getting the business entities created. I have and LLC here in the states, with a retail permit...so I'm good for resale here. I'm guessing I will need something equivalent in Thailand? Will it be easier getting this knowing that I have a wife with Thai citizenship?

From what I can tell, furniture and handicrafts do not require an import permit...but the info on this is confusing at best. I have however read that a customs broker makes life way easier, but is one needed for such a small scale venture? Am I beneath their notice? My vision is to go to market buying sweet looking lawn furniture, rugs and art, shipping it home and then having my retired parents drive around the US selling it at flea markets. Splitting the profits, paying taxes, and then having some chilled coconuts. Thoughts? Concerns? Guidance?

Posted

Mightymaxx

Sounds like a great idea.

Your wife can operate as a sole proprietorship which takes around 15 minutes and maybe a 100 baht to set up at your local government office.

Customs brokers and/or shipping agents will be happy to talk to you. In Bangkok there are many.

I would be cautous about the furniture unless you are certain about your market.

Look for small items where your eye makes the collection special and your wife's bargaining in Thai keeps prices fair.

Posted

We only wish to make a living, and purchase a small economical Leer Jet.

If your wife still has Thai citizenship, exporting from Thailand is no problem. Exports needs some expertise, an export agent and shipping agent would be most useful.

Import into the US will certainly be much easier if you use a customs broker over there,.

I'd be curious to see your business plan to understand how it will include a Lear Jet, though.

  • 2 weeks later...
Posted

I don't think she even needs to register as a sole proprietor before starting the business, unless it is going to be big enough to register for VAT or is something that needs a license like a bar or restaurant. To be legal she would simply need to declare income from the business in a personal tax return for the tax year (Jan-Dec) before the deadline at end March. Income from a sole proprietorship is simply filed using the PNG90 form for income from personal business. VAT registration is required for any business with turnover in excess of B1.2 million a year. If you don't register for VAT you can't claim VAT back from purchases but these are likely to be cash without a VAT receipt anyway for this type of business. VAT is not chargeable on exports. I guess you could start off just sending off goods privately and remain under the radar screen. In any event you wouldn't want to charge a high price on invoices to yourself in the US and increase US import duty. So the profit in Thailand should not be too high. I think you only need to worry about registration in Thailand if the business gets big enough to start employing people, rent premises, register for VAT and you start exporting to customers other than yourself. Before that you are just sending stuff to furnish your own home.

Posted

Thanks for the replies. I like the idea of keeping it small and experimenting with it at first. If we're able to find a consistent market for the stuff we get then maybe we can look into getting bigger and registering everything. I'll still need to look into a legit way to ship stuff out of Thailand. Once I'm there, which may be happening sooner rather than later. I'll seek more specific/detailed advice from experienced shippers.

As for for the Lear Jet Business Plan it would go something like this

Step 1: Open Thai based business

Step 2: Win the lottery

Step 3: Lear Jet

Seems pretty solid. I'm still working on my pie charts.

  • 4 months later...
Posted

I own a small freight forwarding company in Chiang Mai and can help regarding exporting to the US. I can pass on details of regular customers there and they will be able to give you info on importing into US. Google Thai Exports or PM me.

I probably would via away from furniture as the type that is selling well in US right now is pretty chunky and I don't think your retired parents would be too happy with you.

The other items to avoid would be any religious artifacts be they Buddha images, Ganeshas or Khmer figures. Full body items manufactured within the last five years are possible to export but it is a lengthy process requiring permission from the Arts and Antiquities department at local museums - also the shop selling the item needs permission to sell religious images and alot of them don't. Part images -heads or hands, relief work, or images carved into wooden logs are illegal to send despite what shopowners may tell you.

I can also pass on details of clearing agents in the US that I use and they will be able to tell you about import duties and clearing charges etc.

Whoever you ship with you will need to fill in an import security filing (ISF(10+2)) - pretty important as failure to do so will result in heavy fines in US.

You will also need a document called The Lacey Act which is necessary if you are importing wood products

Apart from this it's all plain sailing and your parents will be flying from fair to fair sipping champagne in their brand new jet within no time.

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