import duties = high cost of road bikes?

[BT444]

i was admiring the Cervelo road bikes (particularly the Cervelo S2 priced around 120,000 baht) at Bike Zone but when i got home and googled them i discovered that shop is selling them for about $1000 more than they sell for online or at shops in north america. 

 

is the much higher price a result of import duties? or a combo of factors? 

[fdimike]

Import duty can be anywhere from 30-40% I'm told.  I've noticed that Customs tax is being applied across the board now as well.  In the past there were ways around the tax which i won't go into.  Now that the government has begun to tighten things up (and rightly so) I would expect to see higher prices on imported goods such as bikes etc.

[BT444]

Import duty can be anywhere from 30-40% I'm told.  I've noticed that Customs tax is being applied across the board now as well.  In the past there were ways around the tax which i won't go into.  Now that the government has begun to tighten things up (and rightly so) I would expect to see higher prices on imported goods such as bikes etc.

 

thats a bummer

[fdimike]

When I say I was told I meant by a bike shop owner of high end road bikes in Khon Kaen.   I just bought my brother-in-law an entry level Specialized MTB bike from my LBS here in Udon Thani.  The price was 10,500B with air shocks up front and Shimano group set for the gears (24), brakes (disc x2) etc.  The pedals are pure crap as is the saddle but the rest of the bike is ok for someone just getting into the sport.  I would expect these prices to move upward as replacement stock comes into the country due to the import duty which will probably be applied across the board according to law. 

 

   

[moonoi]

Don't forget normally you can get up to 20% discount off the list price in the shop as well.

 

From what I'm told, the importers can get a significantly reduced tax rate, if the bike is approved by Thai Cycling.

 

General rule of thumb for personal import is:

 

Fully buily bike (even if broken down in to frame and components but shipped together) 30% duty plus 7% tax calculated on the full cost inc shipping

 

Frame only 10% duty plus 7% tax calculated on the full cost inc shipping

 

The best way is to bring the frame in and then build up with components sourced locally, but from pricing this up myself, it doesn't work out that much cheaper in the end, and in most cases the local distributor/importer won't honour any warranty with the frame should you have a problem. Only worth it if its for a model you can't get here, or you're having problems finding the correct sized frame.

 

Add to that, companies like the importer for Specialized, trying to market it as a upmarket brand, rather than mass market like Trek/Merida/Giant some extra is added on. Because an upmarket brand isn't cheap right?

 

As to Cervelo, I picked up an S5 two years ago for 130k, as it was the previous years model. They may still have some older stock left at cheaper prices (I've seen Bike Zone posting pictures of customers buying the 2012 model in both Team and Standard versions this month), the S2 & S3 is updated for 2014/15 so expect premium prices for now.

[Somtamme]

i was admiring the Cervelo road bikes (particularly the Cervelo S2 priced around 120,000 baht) at Bike Zone but when i got home and googled them i discovered that shop is selling them for about $1000 more than they sell for online or at shops in north america. 
 
is the much higher price a result of import duties? or a combo of factors? 

Yes, the S2 is lovely, but older Cervelo's are still awesome and lovely to ride, with characteristic thin seat stays to allow a degree of flex and cushion to the ride, same design as Canyon.

Agree to above, look for older bargains to offset tax concessions e.g.

[attachment=279006:ImageUploadedByThaivisa Connect Thailand1407944031.914420.jpg]

Custom painted version of Canyon same design as Cervelo

[attachment=279007:ImageUploadedByThaivisa Connect Thailand1407944050.393834.jpg]

[Gulfsailor]

Racing bikes have an import duty in Thailand of 1% since 2012.

[fdimike]

That's not what I've been told by a high end bike dealer in Khon Kaen.  According to him import duty is 30-40% on imported bikes.  Some of this duty was gotten around by paying money to the Thai Cycing Association/Federation who then made an "arrangement" with customs officials tp lower the duty.  I seriously doubt that's happening any longer.  Of course my source could be wrong and if so i apologize.

[moonoi]

That's not what I've been told by a high end bike dealer in Khon Kaen.  According to him import duty is 30-40% on imported bikes.  Some of this duty was gotten around by paying money to the Thai Cycing Association/Federation who then made an "arrangement" with customs officials tp lower the duty.  I seriously doubt that's happening any longer.  Of course my source could be wrong and if so i apologize.

 

I believe the duty reduction is still going on, thats the "approved by Thai Cycling" I mentioned in my previous comment

 

Everything you say seems to be consistent with what I've been told in Bangkok as well.

[BT444]

Don't forget normally you can get up to 20% discount off the list price in the shop as well.

 

 

 

really? they would discount by up to that much if i just asked? 

[BT444]

 

i was admiring the Cervelo road bikes (particularly the Cervelo S2 priced around 120,000 baht) at Bike Zone but when i got home and googled them i discovered that shop is selling them for about $1000 more than they sell for online or at shops in north america. 
 
is the much higher price a result of import duties? or a combo of factors? 

Yes, the S2 is lovely, but older Cervelo's are still awesome and lovely to ride, with characteristic thin seat stays to allow a degree of flex and cushion to the ride, same design as Canyon.
 

 

 

though Cervelo's are extremely sexy bikes, i think for now ill have to settle for something less prestigious. Cervelo prices are far beyond my financial reach these days

[yankee99]

That's not what I've been told by a high end bike dealer in Khon Kaen.  According to him import duty is 30-40% on imported bikes.  Some of this duty was gotten around by paying money to the Thai Cycing Association/Federation who then made an "arrangement" with customs officials tp lower the duty.  I seriously doubt that's happening any longer.  Of course my source could be wrong and if so i apologize.

It really depends where they are imported from and seems Cervelo are made in China. This would mean with proper documents only 7% vat is due.

If its a real racing bike then its 1% plus vat no matter where its made. Thais can be funny telling someone its expensive because its imported but when its made and shipped from a place with a trade agreement such as China there is no customs tax.