Exporting

[mln]

Hi

A friend of mine in Australia runs and owns a small but lively stall at a weekend market - and wants some unique products in particular handbags, clothing, jewelry from Thailand.

She has asked me to give her a hand (I have just moved to Chiang Mai permanently) but I have no experience in exporting.

I am doing research in exporting goods and wanted some personal advice from anyone who does this.

*As the shipments to her would only be small and maybe irregular - would I be best sending goods through the postal system or via a courier like FedEx?

*Do I have to pay taxes for goods leaving Thailand (I am aware my friend will have to pay taxes in Australia)?

*Do I need any special licenses?

* Bargaining for goods - any tips? As she only wants unique products (not bulk amounts of the one style) what's the best way of getting the 'best' price from manufacturers/shop owners/stall owners. I have seen some fantastic craft work of bags, jewelry and clothing at markets here in Chiang Mai but not sure what the best approach is.

Any other helpful advice would be greatly appreciated.

Many Thanks

[Richard Hall]

Hi

A friend of mine in Australia runs and owns a small but lively stall at a weekend market - and wants some unique products in particular handbags, clothing, jewelry from Thailand.

She has asked me to give her a hand (I have just moved to Chiang Mai permanently) but I have no experience in exporting.

I am doing research in exporting goods and wanted some personal advice from anyone who does this.

*As the shipments to her would only be small and maybe irregular - would I be best sending goods through the postal system or via a courier like FedEx?

*Do I have to pay taxes for goods leaving Thailand (I am aware my friend will have to pay taxes in Australia)?

*Do I need any special licenses?

* Bargaining for goods - any tips? As she only wants unique products (not bulk amounts of the one style) what's the best way of getting the 'best' price from manufacturers/shop owners/stall owners. I have seen some fantastic craft work of bags, jewelry and clothing at markets here in Chiang Mai but not sure what the best approach is.

Any other helpful advice would be greatly appreciated.

Many Thanks

Dear mln,

to answer you questions:

- To be legal you need a work permit

- Sometimes courier service is cheaper than regular airmail - depends on the quantity to be sent and the destination. To get good rates from any private courier company you have to sign up an account with them and use their service on a regular base to avoid the account being cancelled. EMS (courier service by the Thai post office might be an alternative). Contact your local post office to get the most current price list for mail and EMS to abroad countries. This will give you a detailed idea of the rates. Contact Fedex and get their price list and you can compare from case to case. Those lists are broken down by weight and country of destination.

- No, you do not have to pay taxes here in Thailand for sending those goods indicated by you.

- To be legal and to carry out FREIGHT shipments by air or sea you need an export permit (hard card). To get one you require a tax number and a work permit. Any private person, however, can use the post and courier services without holding an export permit, work permit or non-immigrant visa means even tourists on a short term stay can forward parcels this way.

- Bargaining - Usually the more you buy the better the price. Rather than buying good individually every week make a combined purchase even if you eventually do not sent out all at once in bulk but in serveral smaller shipments.

Hope this helps.

Good luck for your endeavours.

Richard

[PvtDick]

And don't even THINK about trying to export famous brand name knock-offs. I have it on good authority that four foreigners have been arrested in Pattaya recently for doing just that.

[mln]

Thanks very much for your information. Just a couple more questions:

* What are the chances of getting a work permit just for exporting goods?

* My partner has a full-time job here with a work permit - are we able to export goods using his work permit? - or do work permits apply to a specific job only?

Cheers

Marissa

[Richard Hall]

Thanks very much for your information. Just a couple more questions:

* What are the chances of getting a work permit just for exporting goods?

* My partner has a full-time job here with a work permit - are we able to export goods using his work permit? - or do work permits apply to a specific job only?

Cheers

Marissa

Dear Marissa,

In very brief words: Getting hold of ANY kind of work permit requires two parties. The employer (a company) and an employee. Application (filling in the form) and providing the relevant documents is a cooperative project of both. The employee to be has to prove he/she is qualified for the job and the company has to prove it is entitled to hire a foreigner (amount of capital, tax payment, no. of Thai employees etc.). The chances of actually getting a work permit raise and fall with the quality of the qualifications. Walking into Labour Department as an individual and asking for a work permit to export goods as an individual: Chances = Nil.

A work permit is bound to an individual to work for a specific company in a specific job at a specific place. It is does NOT give the holder the right to engage into any activities other than particular specified in the work permit. Therefore, whether your friend can apply for an export permit this depends on the purposes the work permit has been issued for. If that friend is a teacher it is hence very unlikely that he/she qualifies. To apply for an export permit just the work permit will not do but you need additional papers such as company registration and PoPo 20 (VAT) certificate.

Sorry for being unable to provide more encouraging information but hope I could provide a better idea on how the system works.

Richard

[dr_Pat_Pong]

Hi

A friend of mine in Australia runs and owns a small but lively stall at a weekend market - and wants some unique products in particular handbags, clothing, jewelry from Thailand.

She has asked me to give her a hand (I have just moved to Chiang Mai permanently) but I have no experience in exporting.

I am doing research in exporting goods and wanted some personal advice from anyone who does this.

*As the shipments to her would only be small and maybe irregular - would I be best sending goods through the postal system or via a courier like FedEx?

*Do I have to pay taxes for goods leaving Thailand (I am aware my friend will have to pay taxes in Australia)?

*Do I need any special licenses?

* Bargaining for goods - any tips? As she only wants unique products (not bulk amounts of the one style) what's the best way of getting the 'best' price from manufacturers/shop owners/stall owners. I have seen some fantastic craft work of bags, jewelry and clothing at markets here in Chiang Mai but not sure what the best approach is.

Any other helpful advice would be greatly appreciated.

Many Thanks

Go and talk to the Thai Export Promotion Centre, at 29/19 Singharaj Road, Chiang Mai. 053 21 6350-1, 22 1376. That is the Thai Government office in that region for export promotion of Thai goods. They should be able to help you.

[camel_jockey]

Richard,

Great advice, sounds like you know what you are talking about, so i have a few questions for you too, along the same lines as marissa,

1;Would a Thai national need a export licence and or work permit to export the same sort of stuff to Aus?Freight or container size shipments!

2; Do you know if its difficult for a Thai(my wife actually) to get a export licence/permit or hard card I think you called it?

3; Would she have to set up a company in Thailand?All profits would be made in Aus.

Any other tips would be great, cheers

And Good DR, is there an Export Promotion Centre in BKK?

[camel_jockey]

Dont worry Doc, found it!

[dr_Pat_Pong]

Dont worry Doc, found it!

The DEP in BKK has an immense amount of Thai product on display so it is well worth a visit Camel

[Richard Hall]

Richard,

Great advice, sounds like you know what you are talking about, so i have a few questions for you too, along the same lines as marissa,

1;Would a Thai national need a export licence and or work permit to export the same sort of stuff to Aus?Freight or container size shipments!

2; Do you know if its difficult for a Thai(my wife actually) to get a export licence/permit or hard card I think you called it?

3; Would she have to set up a company in Thailand?All profits would be made in Aus.

Any other tips would be great, cheers

And Good DR, is there an Export Promotion Centre in BKK?

Hi Camel Jockey,

Here a try to answer your questions as per my best knowledge and experience:

1. A Thai national generally does NOT need a work permit but an export/import permit (hard card).

2. Basically, like most law and regulations it is obviously all about taxes. Thais are exempted from the VAT system up to a certain turnover (used to be Baht 600,000 per year but obviously as indicated in other threads this amount has been raised to 1 or 1.2 million in the meantime). I can well imagine customs authorities will ALWAYS ask for a tax number when you plan to engage into export business particularly if it is going to be at FCL (Full Container Load) scale.

Difficult to apply for an export permit for a Thai? Well, since you have to deal with the tax authorities and get into the tax system headaches will come up sooner or later and this is true for anyone (independant from foreigner or Thai) being in business.

3. Most likely not necessary to set up a company as long as you have a tax number. "ALL PROFITS WOULD BE MADE IN AUS." is a phrase no one is going to like to hear here. Government, and customs authorities and tax office are part of it, want a business to be beneficial to Thailand and this means taxable benefit/money must be generated here or otherwise your business will be considered not being legitimate.

There is the possibility for foreign companies to set up branch officies here and in this case on the Thai side profit making is not necessary but certain requirements apply. But anyway, this subject will surely be out of question in your/your wife's case.

It is surely a matter of the background of your wife how good the chances will be to get an export permit. Is she in any kind of a business and the Thai tax system already? Show the customs authorities something convincing that it will indeed be beneficial to the country if handing out an export permit to your wife. How does she qualify? Education, poessession of special means to promote the county and its products and/or generate work for Thai people?

Generally, Thais can engage in lots of activities within the country to make a living but if it comes to preserve the image of the country abroad lots of regulations apply.

Cross-check objectively yourself what you presently have on hand and then put yourself imaginably into the position of the officier in charge. Would YOU hand out an export permit on this base in accordance to Thailand's objective to promote and/or support the country? The outcome will give you the answer to the most crucial question as outlined under point 2.

Website of the Department of Export Promotion: www.thaitrade.com

Lots of luck.

Richard

[camel_jockey]

Thanks for the reply Richard, sounds like the best option is to keep it small.My wife has not lived in LOS for 8 years, so not sure about the tax number, cheers

[Zendesigner]

small quantities like a single piece , send out by airfreight do not require an export license. my wife checked.

If they get a litlle bigger you can always use your shipping company's one. but then they need to pack everything cause it becomes their export then not yours, they have to be sure about the contents.

Your wife will need a company registration (sole thai proprietary for example) to do buisiness with most couriers and shipping agents though. She'll need a vat number after 600000 bath of turnover. Maybe this has gone up ,she only found this number.

Vat is very hard to get back from thai governement after export. they just don't want to pay.

indeed keep it small , you can always expand in to more difficult scenario's later.

suppliers are no problem , wholesale here is two pieces and up.

[El_D]

Thanks Guys & Gals,

This thread's been very helpful.

I opened a website earlier this month & advertised it on Overture, hoping to get lots of smaller orders and thus stay under the radar till I had enough $$$ to go legit.

My first order has come in, from a manufacturing company in Kuala Lumpur, to the tune of 2.2 million baht (of which I'll get to hang onto 600,000 or so).

Got another inquiry into a 20 foot container (FCL) of a slightly different, but related product which will be in the 16 million baht range (of which I'll get to hang onto 2 mil or so).

Not sure if the India order will go thru, but I just returned from KL and a visit with the customer there, and it's all but in the bag.

Anyhow, some of the ideas on this thread have given me some ideas that I think I will be able to use to get this first deal thru, then I'll have the $$$$ to capitalize and go legit.

I think I'll temporarily transfer ownership of the website over to my wife's Visa card account to help establish her with some type of export "potential" so she can get the "Hard Card" as a sole proprietor, do this first deal, then go legit with the proceeds and get my own card.

I'm glad I wasn't scared to jump in there and test the waters. It's amazing what a potential 600,000 baht profit can do for the creative grey cells.

Chok Dee Krap,

El D

[camel_jockey]

El_D,

Cool to hear some good news on this site, its not all doom and gloom after all!Any chances of your web address?

[El_D]

Hey Camel Jockey,

Gotta say that my (my primary job) company's penchant for keeping me in Sandland and in airplanes flying across bleak deserts where few people bathe and most folks stink to high heaven, and the women dress like Halloween spooks was the true jist of my entrepreneurial endeavors, & yes, I've ridden more than one camel but never professionally

I've been to 50+ countries but just can't stop comparing them to LOS.

Shoot me a PM & we'll chat.

Best,

El D