Food Import Business

[adjanmeyn]

Hello

I am planning to import food products from Germany and would like to profit from your experiences. I am happy for every hint or add on to my plan and porblems you experienced. As well I would like to know how much the minimum capital you needed was till you sold your first container.

1. Sending food product probe to the FDA for testing and applying for a product license.

- How difficult is it to get the license and how much will it cost?

- Would a food analysis from Germany be accepted?

- Do I have to register the trademark of the product?

2. Register the company name.

3. Register 2 million Baht which will be in a bank account for a couple of weeks .

- I don’t understand the pay-in of 25% of the 2 million??? Does that mean I only need 25% of 2 million to get the work permit?

3.Open the company with 7 shareholders with me as managing director.

- How much power do the shareholders have?

- Do they get a distribution (normally it is assumed that they have paid for

Their shares)?

- I found this on the net: C. Convene a Statutory Meeting

Once the share structure has been defined, a statutory meeting is called during which the articles of incorporation and bylaws are approved, the Board of Directors is elected and an auditor appointed. A minimum of 25 percent of the par value of each subscribed share must be paid.

4. Sunbelt Asia told me that I don’t need any employees to get a work permit.

- With my last job I got the Non-B Visa first than I had to go to the immigration office to get the work visa and than I could get my work permit. My employee told me that I can only get a work permit if I have a work visa which I can only get if I have 4 employees as far as I understand.

5. Applying for an Import license at the FDA.

- Will FDA inspectors want to visit the storage place?

- Where can I rent a small space in a cooled warehouse?

- How much, how long and are there any problems to get an import license?

6. Receiving the first container.

- What problems with the customs can occur?

Well I hope I have everything covered.

Thanks for your replies.

[rcm]

Hi,

I think you will be best off with some Professional advice from a Lawyer.

Does your Food Items have Haccp Certification?

I know many Coutnries do ask for this .

rcm

[~G~]

Those are complex issues, don't expect them to be fully addressed here. Briefly:

- In getting import licenses expect some "unofficial" fees on the way.

- There are legal ways to keep the shareholders power and benefits to the minimum (minimum means zero)

- No employees required to get a work permit.

- Custom officials are in a very good position to charge you extra for anything if your paperwork or permits are not 100% correct.

Edited March 11, 2006 by ~G~

[adjanmeyn]

Thanks for the reply,

Do you have your own experience with inofficial fees and their heights?

Unfortunately it seems as if there are not many food importers on the forum.

I was hoping they would share their experiences with me.

[~G~]

I import electronics to Thailand, not food, so I cannot really give you accurate advice in this field. I did not have to pay any unofficial fees, but I certainly take every step I could think of to make sure I wouldn't, including taking a real sample to the the custom officers before the import and have them give me a classification (don't assume they will except yours), then asking the exporter to send the shipment to that particular terminal. You have to make sure you have a purchase order and that it matches the Invoice (otherwise they might say that the Invoice is undervalued). With food it is bound to be more complicated.

I have experience of importing plants to another country, have them delayed for inspection for 10 days, pratically 100% loss. Is it Fresh food you'll be doing?

I suggest you start by meeting local custom agents and frieght forwarders. They will be the ones that will handle the problems if and when such will arise.

As for permits, I did preliminary checks about a few products, both import (cosmetics) and export (food), and decided not to proceed with them. I did get a clear message about extra fees along the way.

Edited March 13, 2006 by ~G~

[rcm]

I suggest you start by meeting local custom agents and frieght forwarders. They will be the ones that will handle the problems if and when such will arise.

Absolutely agree...I am in the export too so can't really give you better suggestions but one thing you might look into . Maybe you could Team up with somebody in Germany (or perhaps Holland ) who is already importing Food Items( hopefully it isn't perishable) to Thailand ? They know the procedure and they know the "right " People at the right Places, or at least can give you advice.

good luck

rcm

[h90]

we have an customs clearing agent which was so far perfect and really cheap (thats a bigger company but we are always in thouch with that guy).

He always wants everything 200 % perfect including pictures and or samples and the "PO" of the products, the invoice and the money transfer documents.

so far no problems no money under the table, but till now never food just mechanical things. for sure they make more problems with food.....

if you bring in some food, let me know, me privat and a mate with an austrian restaurant may buy some small quantities from you.....

Hello

I am planning to import food products from Germany and would like to profit from your experiences. I am happy for every hint or add on to my plan and porblems you experienced. As well I would like to know how much the minimum capital you needed was till you sold your first container.

1. Sending food product probe to the FDA for testing and applying for a product license.

- How difficult is it to get the license and how much will it cost?

- Would a food analysis from Germany be accepted?

- Do I have to register the trademark of the product?

2. Register the company name.

3. Register 2 million Baht which will be in a bank account for a couple of weeks .

- I don’t understand the pay-in of 25% of the 2 million??? Does that mean I only need 25% of 2 million to get the work permit?

3.Open the company with 7 shareholders with me as managing director.

- How much power do the shareholders have?

- Do they get a distribution (normally it is assumed that they have paid for

Their shares)?

- I found this on the net: C. Convene a Statutory Meeting

Once the share structure has been defined, a statutory meeting is called during which the articles of incorporation and bylaws are approved, the Board of Directors is elected and an auditor appointed. A minimum of 25 percent of the par value of each subscribed share must be paid.

4. Sunbelt Asia told me that I don’t need any employees to get a work permit.

- With my last job I got the Non-B Visa first than I had to go to the immigration office to get the work visa and than I could get my work permit. My employee told me that I can only get a work permit if I have a work visa which I can only get if I have 4 employees as far as I understand.

5. Applying for an Import license at the FDA.

- Will FDA inspectors want to visit the storage place?

- Where can I rent a small space in a cooled warehouse?

- How much, how long and are there any problems to get an import license?

6. Receiving the first container.

- What problems with the customs can occur?

Well I hope I have everything covered.

Thanks for your replies.

[adjanmeyn]

Thanks for the tips that was much more helpful.

One of the first two products will be a sweet with chocolate so I will have it in a cooling container on 20 degrees and the other product will be a drink that i will store in the same container for the beginning.

I assume that delay at the customs will cost me the storage for the container and the power for the cooling system but the food if cooled wont become bad.

G if you get a classification from the customs already why do you still have to go to that terminal? Do you have to get a classification everytime? Did you go yourself to the custom (Their English is good enough)? Any idea how high he "extra fees" will can be? Was that a principal decision not to start with that import because of the extra fees?

h90 would you mind to send me the contact information of your custom guy? [email protected]

Well another 6 month at least before the first container will come and I would be happy to deliver you my product.

Anybody any comment on the work permit obscurity?

[~G~]

G if you get a classification from the customs already why do you still have to go to that terminal?

I don't need to go, I make sure the shipment arrives to the same terminal with the custom officials who gave the classification. Need to select the right airline.

Do you have to get a classification everytime?

First time should be enough, as long as you documents are as similar as possible to last shipments.

Did you go yourself to the custom (Their English is good enough)?

No, that is what a custom agent is for..

Any idea how high he "extra fees" will can be? Was that a principal decision not to start with that import because of the extra fees?

If you expect big enough volume it shouldn't stop you.

Anybody any comment on the work permit obscurity?

There is a lot of disinformation about WP and Visas going around. Why do you think they started ThaiVisa.com to begin with? Don't ask your Thai friends, accountants, lawyers, business partners or whoever about WP. I got a WP with no Thai employees. If you don't believe it and want to make sure, just go to the Ministry of Labour, Department of Employment, and ask them. They will be the ones who will issue it, and approve it or not, why ask anyone else?

Good Luck!