Importing a small 1kW Indian-made wind turbine into the Kingdom.

I am planning to import a small 1 kW wind turbine, made in India, into Thailand.

It is rather difficult, for me at least, to calculate the total import duties costs which will be quoted at Bangkok Port Customs House.

I wonder if someone has imported such an item before, and could inform me about how to proceed, so that I will not be unpleasantly surprised when presented with an invoice at Custom House.

I am interested to know what sort of paper work is involved to hassle-free import the wind turbine.

The CIF [Cost including Freight] price for this wind turbine is US$ 1.880.

The total net weight is 160 kg, 250 kg including crated export packing.

I also wonder if I possibly could import this item myself in order to avoid shipping agents fees and further transportation costs to Chiang Mai.

All information concerning importing will be greatly appreciated. Dutchdellboy2

Importing a small 1kW Indian-made wind turbine into the Kingdom.

I am planning to import a small 1 kW wind turbine, made in India, into Thailand.

It is rather difficult, for me at least, to calculate the total import duties costs which will be quoted at Bangkok Port Customs House.

I wonder if someone has imported such an item before, and could inform me about how to proceed, so that I will not be unpleasantly surprised when presented with an invoice at Custom House.

I am interested to know what sort of paper work is involved to hassle-free import the wind turbine.

The CIF [Cost including Freight] price for this wind turbine is US$ 1.880.

The total net weight is 160 kg, 250 kg including crated export packing.

I also wonder if I possibly could import this item myself in order to avoid shipping agents fees and further transportation costs to Chiang Mai.

All information concerning importing will be greatly appreciated. Dutchdellboy2

Sorry , slightly off topic.

Do you have a link/info on where you got it from.

Generally I've found that complete machines attract 15% duty and 35% on spare parts.

Though must admit from a slightly different field.

Shipping agents are cheap and effective , I wouldn't subject yourself to the hassle. Also agents can probably "negotiate" stringent duty assements more easily than yourself.

cheers

Thanks for the info Percy2.

Your question: “Do you have a link/info on where you got it from.” Not absolutely clear to me. Do you mean info about wind turbines or info on imports into Thailand?

I shall answer both.

Wind turbines:

1. Studying the subject in general and being sure you want to obtain your own “green” energy in the future.

2. Finding out about the fairly limited possibilities of collecting sufficient wind power in northern Thailand, - the average yearly wind speed in this area is only 4.1 m/s - and comparing these possibilities with using UV cells for your purpose.

3. Looking at the terrain location on which I am going to build the tower to support my wind turbine.

4. Calculating what sort of height the tower must be and what sort of diameter the blades of a windmill must minimum have, to obtain at least 1kW/h on average.

5. Then looking at the average kW usage in my home and garden to date in Chiang Mai Municipality, finding out that a 1 kW turbine would only cover about 20% of my energy needs and thus coming to the conclusion that more wind turbines have to be installed in parallel, to cover my needs. My electricity bills are at present are about B. 3.500 p/m.

6. Looking at possibilities to lower these costs by using different lighting, and changing fridges, water pumps, etc. to low-energy consuming apparatus. I was amazed at the possible results.

7. Coming to the conclusion that my income, - if I want to live my life in the same fairly comfortable way -, can not support to invest in an enormous wind turbine which would cover my total energy needs in one go. [the greatest cost would be building an enormous tower and not the turbine itself]

8. Planning everything with a “chai yen” and well in time; I am not moving to my new location before the beginning of 2009.

9. Basically browsing the net, comparing turbine specifications and pricing of many manufacturers and wholesalers around the globe.

10. Getting in touch with them and weighing-up their sales talk. Realising that many sellers have only their own pockets in mind and know rather little about what sort of wind turbine should be suitable for your specific location. Make a decision.

Thai Import Duties

Results shocking. Company “A” imports goods into Thailand.

The CIF value of the imported goods ...

How much should total import duties and taxes be imposed on this import?

www.customs.go.th/Customs-Eng/

Sample of Duty Assessment Thai Customs

Company “A” imports goods into Thailand. The CIF value of the imported goods and applicable taxes and duties are as follows:

• CIF value of imports = 200 US$

• Import duty = 60 %

• Surcharge/Special duty = 10 US$

• Fee = 50 US$

• Interior tax = 10 %

• Excise tax = 30 %

• VAT = 7 %

How much should total import duties and taxes be imposed on this import?

Calculation Method:

1. Import duty = (CIF value * rate of import duty) + surcharge

= (200 * 0.6) + 10

= 120 + 10

= 130

(Note: The amount 130 is to be used for calculation of excise tax and VAT.)

2. Fee = 50

3. Excise tax = (CIF value + import duty + Fee) * {Rate of excise tax/1-(1.1 * Rate of excise tax)}

= (200+130+50) * {0.3/1-(1.1*0.3)}

= 380 * 0.4477612

= 170

4. Interior tax = Excise tax * Rate of interior tax

= 170 * 0.1

= 17

5. Base VAT = CIF value + Import duty + Fee + Excise tax + Interior tax

= 200 + 130 + 50 + 170 + 17

= 567

6. VAT = Base VAT * Rate of VAT

= 567 * 0.07

= 40

Total taxes and duties = 1 + 2 + 3 + 4 + 6 = 407 US$

Company “A” imports goods into Thailand. The CIF value of the imported goods and applicable taxes and duties are as follows:

• CIF value of imports = 100 Baht

• Import duty = 60 %

• Special duty = 20 % of import duty

• Interior tax = 10 % of excise tax

• Excise tax = 3 %

• VAT = 7 %

How much should total import duties and taxes be imposed on this import?

Calculation Method:

1. Import duty = (CIF value * rate of import duty)

= (100 * 0.6)

= 60 Baht

2. Special Duty = Rate of special duty * Import duty

= 0.2 * 60

= 12 Baht

3. Excise tax = (CIF value + import duty + Special duty) * {Rate of excise tax/1-(1.1 * Rate of excise tax)}

= (100+60+12) * {0.03/1-(1.1*0.03)}

= 172 * 0.0310238

= 5.34 Baht

4. Interior tax = Excise tax * Rate of interior tax

= 5.34 * 0.1

= 0.54 Baht

5. Base VAT = (CIF value+ Import duty+ Special duty+ Excise tax + Interior tax) * Rate of VAT

= (100 + 60 + 12 + 5.34 + 0.54) *0.07

= 12.46 Baht

Total taxes and duties = 1 + 2 + 3 + 4 + 5 = 90.34 Baht

I have asked around of course but nobody seems to know the exact procedures.

I remember, many moons ago, I started to import Indonesian Sarongs into Thailand by air. At Bangkok Don Muang Airport the costs were absolutely enormous, so I tried my next shipment at Hat Yai Airport where the costs were about half, but still way to expensive.

I then ”borrowed” a Statistical Handbook from one a the friendly Customs Officers in Hat Yai and found out, - after studying this Holy Custom Book for a whole night instead of throwing myself into the then vibrant sing-song environment in town -, a way to lower the import duties by 75% again , simply by cutting the pieces of material into maximum 10.000 cm square pieces, thus importing them as rags into the Kingdom.

This time around, I will first find out the best way to import these user-friendly items which should really, - if you consider the energy problem Thailand has -, be rated at a 0 [Zero] tariff.

Dutchdellboy2

Like Percy, I am very interested in the particular turbine you are intending to import.

Is this a one off, or do you intend marketing here?

Web links for the manufacturer, any data you can provide will be most welcome

Hi Crossy,

To answer your question right of the cuff, yes we have been offered the agency of these wind mills in Thailand, but we have not accepted this offer as yet.

The reason I write "we" is because I personally will not enter into business again in Thailand; I have given up my "status" as a business person here some years ago and I am not planning to start up a business, in my own name, again. I enjoy an income from abroad.

However my wife is much younger than I am [lucky me] and it could well be that she will show an interest, possibly together with a younger partner and friend of mine, who still resides abroad but is also married to a Thai.

Many legal issues would have to be resolved, so my first interest remains to import this windmill as a personal asset for our electricity needs.

We will test this wind turbine ourselves and then, when all the pros and cons are known to us and we know what the real import duties and further transportation, etc. costs are, we could possibly introduce it on the Thai market.

I advice you strongly, if you are not 100% familiar with wind energy subjects, to observe a wind mill in working state first and see it possibilities; well before you decide to acquire one for yourself.

I will certainly keep you in the picture and when I have useful news updates, possibly invite you, in the near future, to see progress for your self on our land.

Regards,

Dutchdellboy2

How did this all work out?

I am interested although know almost nothing about the topic.

Also, I read in the Bangkok Post a while ago that someone in Thailand had designed and was making their own small wind turbines here - does anyone know anything about that?

Cobra are making wind turbines here; there are also some cheap other ones for pumps etc which use wind directly to do the work rather than creating electricity then using electricity to do the work.

I am familiar with an Indian company doing this wind turbine business; AFAIK there is already someone talking to them about being the agency here so you may be too late.

I have no idea on shipping; get a decent logistics agent to help you and they will find the way to import for least cost.

Dutchboy, where are you located? Do you think there's enough sustained wind to make it worthwhile?

I'm based in northernmost Thailand and, though I love the idea of a wind generator, there's not enough wind here to make it worthwhile.

I saw a special on TV which showed how to make a DC generator from scratch - that could be used by a windmill and/or any other device that would get it spinning (cycle pedals, water falling, wood heat powered impellor, etc). It looked relatively easy, basically using magnets and hand-wound copper wire. It would be cool to get a seminar led by some adept person - who could show first hand how to construct them.

slightly off-topic, but I heard of a father who made a pedal powered generator and put it in his living room. Every time one of his kids wanted to watch TV, they had to work out to generate the power. Imagine if your Thai sweetheart had to work out on a stationary bike for each minute she wanted to watch those crappy soap operas on TV (or the katoy laugh fests).

Wind Turbines are classified 8412.80.00 in the Thai Customs Tariff.

Follow this link:

http://igtf.customs.go.th/igtf/en/main_frame.jsp

Click on Search for Import Tariff

Insert 8412 into Tariff Code box

Click search

Click 8412

Click 8412.80.00

This will bring up a range of duty rates for wind turbines, from 30% to zero. It will depend on whether any preferential duty rates are available for goods from India. As most of the important information is written in Thai, I can't help any further.

You will also have to pay VAT on the combined CIF + customs duty. I am not aware of any further special duties or taxes (eg excise) on wind turbines.

Of course these are the official rates. However, you never can tell when dealing with Thai Customs.

Even though it is a relatively small import, I would use the services of a customs broker. They will have the right contacts within Thai Customs. Also, if you are looking to import more of these machines, getting it right the first time will be very helpful in the future.

Good luck.

why buy one from india when you can make one in thailand...? PM if interested in more info.

My electricity bills are at present are about B. 3.500 p/m.

wow, what are you running 100,000BTU aircon 24/7?. my electric bills are 1500/mth and i though that was high because i'm on an island.

i would really like to get a wind turbine, we have good consistent sea breezes for a lot of the year at my house.

why buy one from india when you can make one in thailand...? PM if interested in more info.

i'm interested and i'm sure other people are too. can you just post your info here in public?