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What are the Legal Foundations Governing Import in Thailand?
The import in Thailand is governed by a complex regulatory framework defined chiefly by the Customs Act of 2017 along with other relevant laws regulating revenue, importation and exportation, and treaties to which Thailand is signatory. According to the Customs Act, importing involves bringing goods into Thailand. It also defines duties of importers, valuation principles, declarations, and penalties. The Thai Customs Department enforces these laws through ministerial regulations from the Finance Ministry.
For companies trading or importing long-term in Thailand, understanding documentation, licensing, classification, valuation like CIF-based rules, incentives from the Board of Investment are imperative. This guide provides a complete overview of the import in Thailand.
Table of Contents
What Goods are prohibited or restricted from importing into Thailand?
Importers must thoroughly research legal categories created by the Section 4 of the Custom Act to avoid severe consequences.
Which goods companies cannot import in Thailand?
Prohibited goods refer to items that companies cannot import in Thailand under any circumstances. These include all narcotics without exception, pornographic materials, counterfeit money or banknotes, and goods that infringe on intellectual property rights such as fake branded products. Thailand also prohibits the import of certain wildlife and endangered species protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora. The importation of these restricted items can lead to confiscation by customs authorities, criminal charges being filed, and potential imprisonment if convicted.
Which goods companies can import in Thailand under specific conditions?
Restricted goods may only be imported into Thailand when certain conditions are met, usually requiring advance approval or licenses issued by the relevant Thai government ministries. For example, statues of Buddha, other religious artifacts, and antiques necessitate permission from the Fine Arts Department. Firearms, ammunition, and explosives demand licenses from the Ministry of Interior. The Department of Agriculture must authorize imports of plants and plant materials, while live animals and animal carcasses are subject to Department of Livestock Development oversight. Food, cosmetics, and medical devices require Thai FDA certification. Additionally, vehicle components must comply with Ministry of Industry regulations, and tobacco, alcohol, or other excise goods adhere to Excise Department rules. Telecommunications equipment and devices employing allocated radio frequencies need Office of the NBTC clearance. Failure to abide by these stipulations risks confiscation of goods, financial penalties, or legal consequences. This is why it is essential for companies intending to import in Thailand restricted goods to identify the competent authority responsible for granting the required import authorization.
How to Obtain an Import and Export License in Thailand?
Any business planning to import in Thailand on a commercial scale must register as an importer and secure the appropriate licenses. This requirement applies to all legal entities engaged in the commercial movement of goods across Thailand’s borders, whether they be trading companies, distributors, e-commerce outfits sourcing goods from overseas, or manufacturers dependent on imported raw materials or parts.
Which businesses intending to import in Thailand requires a permit?
All Thai or foreign-owned companies conducting commercial intending to import in Thailand must:
- Register with Thai Customs for E-Importer status.
- Obtain an import license or approval from the Department of Foreign Trade under the 1979 Import and Export Act.
Certain restricted goods also demand extra sector-specific import permits prior to customs clearance, including products subject to public health, agricultural, environmental, or industrial safety regulations.
What Documentation is Necessary?
Applicants must submit a full application dossier to the Department of Foreign Trade and Thai Customs containing:
- The company’s Certificate of Incorporation from the Department of Business Development,
- The VAT Registration Certificate (Form Phor Phor 20),
- A copy of the Company Affidavit listing authorized directors and objectives,
- Identification for the managing director or authorized signatory,
- Authorization and ID of any customs broker representing the company,
- A Bank Guarantee or deposit may be required for certain high-risk or controlled goods.
Additionally, companies intending to import in Thailand must register with the National Single Window electronic customs system to enable digital declarations and tracking.
What are the Steps to Obtain the License?
The process generally involves:
- Company Formation and DBD Registration: Ensure the proper establishment and legitimate documentation of the company within Thailand’s legal framework.
- VAT and Tax Registration: Enroll in VAT and obtain a Taxpayer Identification Number to fulfill fiscal obligations.
- Apply for E-Importer Credentials: Submit an application to the Thai Customs Department to access their online customs system for declarations.
- Submit an Import Permit Request: Apply to the Department of Foreign Trade seeking approval to import specified merchandise categories.
- Receive Permit and Activate NSW Account: Upon approval, the permit is linked to the company’s NSW account, enabling electronic submissions.
- Declare Shipments: Begin import in Thailand, provided all customs paperwork and tariffs are properly handled from the start.
How Long Is a Permit Valid For?
Permits for business intending to import in Thailand usually last one calendar year but renewal is necessary if import activities continue. Some import approvals for sensitive or restricted goods may be shipment-specific and narrow in scope or duration.
What Fiscal Responsibilities Accompany Import in Thailand?
Thailand assesses several types of duties and taxes on imported goods. Calculations rely on the CIF value (Cost, Insurance, and Freight), composed of:
- Cost: The price of the goods stated in the commercial invoice.
- Insurance: Typically calculated at 1% of the goods’ cost.
- Freight: The actual shipping expenses incurred.
How Is Customs Duty Computed?
Computation follows Section 2 of the Customs Tariff Decree B.E. 2530. The duties concerning import in Thailand affect goods with CIF values exceeding 1,500 THB or restricted items. The formulas are:
CIF = Cost + Insurance + Freight
Import duty = CIF x relevant tariff rate (by HS code)
VAT = (CIF + Import duty) x VAT rate (currently 7%)
Total taxes payable = Import duty + VAT
For instance, if a consignment of wares valued at 10,000 THB has a shipping expenditure of 1,000 THB, the insurance policy (1% of cost) is 100 THB. Therefore, the CIF worth is 11,100 THB. Should the import tariff be 10%, it amounts to 1,110 THB. The VAT foundation then becomes 12,210 THB (CIF + duty), and VAT at 7% equals 854.70 THB. The complete payment owing is 1,110 + 854.70 = 1,964.70 THB.
Tariff rates fluctuate as per the variety of goods and their categorization within the Harmonized System (HS), which is regulated by the World Customs Organization (WCO). For illustration, running shoes arranged under HS code 6402.19.90 are subject to 30% import duty, while chronographs under HS code 9102.11.00 are subject to 5%.
What Other Taxes May Apply to Businesses Intending to Import in Thailand?
Companies intending to import in Thailand may furthermore be responsible for:
- Excise Tax: On explicit products such as liquor, tobacco, sugary beverages, or fuel
- Interior Tax and Local Taxes: Depending on product classification and provincial regulations
Omission to pay duties and taxes promptly results in surcharges (1% per month) and may incur a 20% sanction under Section 22 of the Customs Act.
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How to Declare Goods for Import in Thailand?
What Is the Customs Declaration Process?
Under Section 51 of the Customs Act, all goods that companies intents to import in Thailand must be declared to the Thai Customs Department, regardless of the mode of transport—by land, air, or sea. The customs declaration is a legal obligation applicable to both personal and commercial imports. This requirement ensures transparency, proper classification, and precise calculation of duties and taxes.
Whether shipments reach Suvarnabhumi International Airport, the Port of Laem Chabang, or across land borders, importers must electronically submit a Goods Declaration (e-GD) using Thailand’s National Single Window (NSW) system. The filing must precede or directly follow cargo arrival. Customs will not release shipments absent a full and verified declaration.
The declaration requires the following:
- Precise goods classification and Harmonized System (HS) code,
- Country of origin and destination,
- Quantity, weight, and CIF (Cost, Insurance, Freight) value,
- Business order, packing list, and transportation records (air waybill, bill of lading),
- Applicable import licenses or permits if relevant
The process also involves Customs Inspection, potentially encompassing paperwork review, physical examination, or scanning. Upon successful authentication and duty payment, customs will provide a Delivery Order or release note permitting clearance.
A declaration counts as complete if:
- The importer or broker submitted all needed documents;
- Authorities verified the particulars and finished any inspections required;
- Applicable tariffs, taxes, or bonds were paid or secured.
Notably, under Section 54 of the Customs Act, failing to declare cargo within 30 days of arrival may qualify it as abandoned or uncleared, vulnerable to confiscation, auction, or destruction by the state.
How can the Board of Investment Facilitate import in Thailand?
What Is the BOI and Why Is It Important for Import-Export Companies?
The Board of Investment is a government agency that acts as an economic development wing under the Prime Minister’s authority. Its central aim is to cultivate investment in Thailand by providing targeted inducements to qualified Thai and overseas investors. For enterprises specifically looking to import in Thailand, notably those associated with logistics, international trade platforms, or procuring raw materials for re-exporting, the BOI puts forth focused benefits that substantially reduce operational expenses and procedural burdens.
How Does the BOI support Import-export operations?
Importing and exporting businesses can directly leverage a range of advantageous BOI incentives, especially when their activities involve bringing in machinery, raw materials, or parts for the purpose of manufacturing or re-exporting.
Key among the exemptions and reductions relevant to such enterprises are exemption from import tariffs on equipment required to stock warehouses, logistics hubs, or packaging stations. Likewise valuable is exception from or decrease of import duties on primary goods employed in producing exported merchandise, particularly for sourcing-centered trading companies. Exemption of import duties on R&D-related materials applies for traders engaged in product betterment as well. Income tax immunity for up to 8 years qualifies activities like international distribution centers, logistics service hubs, or global procurement offices.
Additionally, companies looking to import in Thailand benefit from not needing a Foreign Business License for BOI-backed ventures, simplifying entry for foreign-owned traders. Permission to possess land for establishing warehouses or headquarters also features among the incentives. Finally, the ability to bring in foreign personnel for technical or management roles tied to international trade operations rounds out the stock of supportive policies.
Merit-based incentives, such as extended tax holidays, for businesses that engage in improving Thai suppliers, investing in infrastructure near border trade areas, or operating in Special Economic Zones (SEZ), hold promise for developing cross-border economic cooperation and exchange.
What are the conditions for companies intending to import in Thailand to be BOI-eligible?
To benefit from BOI promotion, a company intending to import in Thailand must align with BOI-promoted categories like international distribution centers, logistics services and warehousing, or trading centers and procurement offices that focus on export-oriented manufacturing. An applicant company must demonstrate a clear business plan directed toward export markets, invest at least one million baht in fixed assets excluding land, and ensure a significant portion of operations promote exports. They also need to comply with value-added and technology integration standards involving automation and digital trade platforms. Additional incentives for companies in designated development zones such as the Eastern Economic Corridor or Special Economic Zones may include extended tax holidays or government infrastructure support.
Conclusion
Precisely understanding import regulations matters greatly when conducting business in Thailand. The Customs Act of 2017 establishes fundamental procedures, obligations, and rights, while sector-specific laws impose further demands depending on goods. Compliance requires thorough comprehension of this intricate legal framework ruling import in Thailand.
Obtaining proper licenses, drafting precise customs forms, fulfilling fiscal obligations for CIF shipments, and sidestepping barred products – legal precision at each phase lets firms run smoothly while avoiding pricey mistakes.
While importing holds prospects, inexperienced ventures risk penalties for noncompliance or passing by rewards. Counsel with seasoned lawyers and customs advisors to understand requirements and capitalize on benefits like what BOI provides, letting businesses expand strategically.