Customs clearance is an important aspect of the shipping procedure whenever products are shipped from one country to another. You must get export clearance before your freight may depart the port of origin. Similarly, import clearance is required before your cargo may reach the target country. This article intends to guide you through the important decisions you must take for custom clearance in Thailand.
We hear from both new and experienced shippers that customs clearance in Thailand has complications with numerous risks. We’ve compiled a list of the biggest decisions to take before preparing for customs clearance. This will assist you to prevent any delays or additional charges.
Select a Customs Clearance Agent in Thailand
Generally, customs clearance agents are logistics professionals. They help with the customs clearing procedure. Additionally, they guarantee that your consignment complies with all import and export standards, laws, and regulations. They help with the essential papers, duties, taxes, and payments, as well as creating the customs entry.
Should I find a Custom Clearance Agent myself?
You may not need to do so every time. Many freight forwarding firms employ or collaborate with licenced customs clearance agencies like Konrad Legal who may handle the process for a charge. Simply ask if brokerage services are included in the price before booking your shipment with a freight forwarder.
How can I engage my own Customs Clearance Agent?
You can hire a third-party customs clearance agent, also known as a Customs House Agent (CHA). You can do so even if you’re working with a freight forwarder. If you do, double-check that your chosen customs brokerage has the appropriate CHA licence. Additionally, they must also have the necessary skills, and experience to handle the job before you hire them.
Remember that you’ll need a customs broker at both the port of origin and the port of arrival for export and import clearance.
When you use a third-party CHA, your freight forwarder will give them the paperwork to clear. Your freight forwarder, however, will not be responsible for any additional charges incurred if the CHA causes delays as a result of their failure to clear customs on schedule.
Know Import-Export Restrictions for Specific Countries
It is your obligation to check that your freight can be exported from the country of origin. Additionally, you must confirm that your freight can enter the country of destination before sending it on its route.
What are the prohibitions?
Certain commodities have prohibitions in the exports or imports for certain countries. Before booking your shipment, we recommend that you check the official lists of such commodities. This will be to confirm that your cargo is not on the list.
That so, with written approval, you may be authorised to export or import certain forbidden products if you meet specific restrictions and requirements. Authorities may seize your cargo and you may face penalties if you export or import illegal commodities.
What are the Restrictions?
For a variety of reasons, countries set limits on the export and import of specific items. You must have information on any restrictions that apply to you before shipping your cargo. Listed below are a few examples:
- Exporting a vehicle that is more than 40 years old, for example, has prohibitions in Thailand.
- Paintings that are more than 100 years old are likewise prohibited from being exported due to their heritage significance.
- Some items are only allowed to be exported or imported in certain specific amounts.
- You can import or export your items only if they meet the specific packaging requirements.
- Also, you can import or export certain products by businesses that have the appropriate licence.
Importing certain items into a country without paying import charges is possible. It’s a good idea to check with your customs broker ahead of time to see if your items are exempt.
Check the Trade Agreement Compliance
Trade agreements have an impact on international trade and let governments set taxes and charges on imports and exports. Certain trade agreements, such as a free trade agreement, can be beneficial to you, but they can also limit your options.
Free Trade Agreements
Negotiations of Free Trade Agreements (FTAs) are between governments with the goal of facilitating trade. Generally, these are to reduce trade barriers, such as tariff reductions and other stipulations. Moreover, FTAs amplifies market access to collaborated nations and tradesmen.
Exporting under a free trade agreement will almost certainly benefit your bottom line. As a result, it will be worthwhile to conduct research to determine whether your products are eligible for benefits under any FTA.
Anti-Dumping Duties
These are protectionist taxes of governments on foreign imports when they consider the goods are being sold for less than fair market value. Countries just wish to protect their domestic firms against foreign enterprises. Moreover, this is for those who dump products at a cheaper price than they would fetch in their native market.
Check with your customs broker to see if the products you’re importing are subject to anti-dumping duties. If that’s the case, you’ll need to be cautious about how you price your products.
Countervailing Duties (CVDs)
Anti-subsidy duties, also known as countervailing duties, are tariffs that apply to imported goods. They balance out any subsidies that exporters receive from their own country’s government. These tariffs are impositions of the World Trade Organization (WTO) because export subsidies are unfair trade practices.
Check with your customs broker before exporting to see whether any CVDs will apply to your goods when they reach your import country. You must be aware of these ahead of time, as they will have a detrimental impact on your bottom line.
Trademark and Copyright Verification
It’s critical to protect your intellectual property (IP) when exporting. Additionally, you must make sure that you’re not infringing on anybody else’s IP during the process.
When you export, you often lose access to your home country’s patents, trademarks, registrations, and copyright protection. You don’t want confiscation of your items upon arrival in the importing country because they’re mistaken for a similar, local product.
You must conduct preliminary research to discover any existing trademarks and copyrights. Additionally, determine how intellectual property concerns are handled in the importing country.
Supplier and Buyer Research
All parties in your supply chain, such as suppliers and customers, must have a check against restricted party lists. Organizations, corporations, or individuals classified by governments as restricted parties, also known as denied parties, are entities with which one should not do business.
Someone may be added to a restricted party list for a variety of reasons. They might, for example:
- Has past record as a terrorist organisation or are linked to one
- Participate in drug trafficking
- Have a track record of unethical business practices
Shippers that break these rules risk being fined, having their export licence suspended, or even being imprisoned. Fortunately, most freight forwarders, include restricted party screening in their services.
The Bottomline
These were the most critical aspects which you must take care of before initiating import-export operations to or from any country. The Thai Customs Department is more particular about documentation and packaging standards. You must seek help from experienced customs clearance agents in Thailand as a single mistake in your invoice too can put your consignment on hold.
For more details and assistance on Customs Clearance in Thailand, mail us at [email protected].
