Freight to Australia – Step by step
Thailand has manufacturing costs and therefore much cheaper labor in Australia. It is therefore quite natural for companies to import products from Thailand to save money.
The Department of Foreign Affairs and Trade has released figures on its exports. From Australia’s point of view, Thailand’s imports amount to nearly £ 15 billion a year. Thailand ranks fifth in the ranking of the main product importing countries in Australia.
In the following texts, you will find plenty of tricks, to manufacture and import products in Thailand and resell them on the Australian market
Importing from Thailand — The process
When you want to import products from Thailand you must follow these steps
- Having the necessary information on your goods, they are allowed to be imported and it is also necessary to do market research
- Find out about the online market of manufacturers and suppliers
- Carry out due diligence on your supplier and sign a contract with them.
- Provide a logistical expedition between Thailand and Australia
- Be aware of all the different taxes that you need to pay to export
- Once in Australia you must pay these taxes
- Start marketing your products in Australia
Shipping your products internationally with taxes, licenses is not something easy. Get advice from people with experience in this field and knowledge from the field.
What can you import from Thailand to Australia?
You have to be aware of the functioning of the market before importing your products into Australia. One of the key factors for success will be to explore market trends in Australia
Here are some important tips:
- Perishable products should be avoided as much as possible. Indeed, there is a fairly strict regulation for biosecurity in Australia, it is often difficult to import your products. It is sometimes expensive to import products that can rot in containers, so you will need special containers
- Products that are already very readily available in the importing country have no interest in being imported. These are bought in bulk by very large importers which will make it impossible to compete against them.
- You must base your source elements on the potential market and do not do the opposite.
- Analyze your margins and prices. It is necessary to understand your costs (variable and fixed) so that this appears in the financial strategy.
Sourcing goods from Thailand
There are several Thai suppliers to choose from, among them:
And many more
When you know what you are looking for, make a short list of all the suppliers that have this product. Afterwards you will:
Read feedback from past customers about vendors, the level of customer service, the quality of the products they provide and see anything that may have been problematic.
You will need to contact the suppliers and ask for a sample of the products you want to buy. Once the sample received verified it meets your criteria and verify that it is indeed products of the same quality that you will receive after.
It is also necessary to know the terms of payment, the deadlines to provide you with the products, what protections what guaranties, and if there is the possibility of returning products.
If you are satisfied by all points, you can sign a contract with them.
Understanding government regulations on goods imported from Thailand into Australia
It is very important to understand to comply with Australia’s trade rules to import. This guide will help you understand. Here are some rules:
- You must have a special permit for the importation of certain chemicals, pharmaceuticals, products and others.
- Quarantine is required for plant and animal products.
- Rates, duties and taxes may apply – Learn more about what follows.
- Government concessions exist for some importers.
- Free trade agreements could work to your advantage.
- There may be additional costs.
- You will need to label the products correctly.
Understand costs to import from Thailand
You have to be aware of the cost of importing into the overall costs of your overall costs. In these expenses are included:
- The cost of purchasing the product.
- Shipping, logistics and distribution costs.
- Thailand’s export tariffs and Australia’s import.
- Taxes and tariffs on your imported products. You must know them:
Most of the time, you will have to pay import duties and GST on goods valued at more than $ 1,000 AUD.
- Processing Fee and Import Entrance Fee – Customs will charge you a fee (generally less than $ 200 AUD) to handle your goods.
- Customs import duty is calculated as a percentage of the price you paid for the goods. The duty rate can vary from 0% to 10%, but the rate of most products is 5%.
- There are also other factors that affect the Goods and Services Tax (GST):
- valuation of assets more.
- The amount of the Customs import duty plus.
- Cost of goods insurance their transportation to Australia.
- The GST is invoiced at 10% of the final amount.
Sell your products
When you have received your products from Thailand, you have to market them to sell them. You must sell them all, and sell them for profit. We wish you good luck !
To pay with a foreign currency
When you do business with products that come from Thailand the used currency is often the Thai Baht or the US Dollar. With goods from Thailand it is necessary to consider OFX. They are specialists in international payments for Australian companies. Each customer of this company is going to have a personal manager providing forward exchange contracts for example.
Your 10 Step Guide to Importing Goods Into Australia
A great way to offer a wider offer to the customer is to offer products that come from other countries, especially if you can not find a local manufacturer. But it is not easy because of the multitude of regulations and the costs that can be incurred by products imported from abroad.
We offer you a 10 step guide to read before ordering your container to understand the most important subtleties of importing products.
Step 1 – Make sure you’re aware of importing laws and government regulations
There are certain rules imposed by the Australian government that you must respect when importing goods. You will find lots of information on the internet to understand how it works. Remember that all imports must comply with government regulations.
We should start with the rules of government imports. Watching these rules of the Ministry of Immigration and Border Protection is very important. They are the ones who are responsible for the goods.
Step 2 – Find out if you need a specific permit
Having a general license to import goods into Australia is not necessarily necessary for businesses or individuals. Sometimes you may be asked for a permit for certain types of goods at the time of customs.
There are goods that are prohibited from importing. This includes products such as hazardous chemicals, pharmaceuticals, narcotics, certain foods, weapons, tobacco and biological materials. Chemicals have specific regulations.
Step 3 – Learn if your goods will need to be quarantined
If you are transporting plants or animals, mineral or human products. These will be quarantined for processing. You can find full details of quarantine rules in Australia here : business.gov.au – Quarantine rules
Step 4 – Learn about the tariffs and taxes you’ll need to pay
You will probably have taxes to pay on imported products.
You need to understand:
- Import the entry fees and processing fees you can find here : Australian customs
- Valorize your goods for customs duties.
- Find out if you have to pay taxes on products and services.
- Obtain the right tariff classification for your products.
- Taxes on alcohol, tobacco and fuel.
- An Australian business number for claiming tax credits and deferring tax payments may be requested. You should contact your tax office for more information.
Step 5 – Understand the charges for import duty, and goods and services sales tax
You will find an estimate of the types of fees you will have to pay: for products with a value greater than $ 1,000 AUD, there will certainly be GST import duties payable.
- Import entry fees and processing fees – Customs will charge you a fee (generally less than $ 200 AUD) for processing your goods.
- Customs import duty is a percentage of the price you paid for the goods. The rate of duty can vary from 0% to 10%, it is often a 5%
- The Goods and Services Sales Tax (GST) will also be charged based on the following:
- valuation of assets more;
- The amount of the Customs import duty plus;
- Cost of goods insurance their transportation to Australia.
- The GST is invoiced at 10% of the final amount. This is a general guide on products, fees vary depending on the products you can import.
Step 6 – Take advantage of any concessions
Many free trade agreements exist between Australia and other countries around the world. This limits international trade barriers and thus reduces import costs. You can find a lot of information about ALE, depending on which country you are importing from.
For more information, check official free trade agreement.
Step 7 – Find out about other costs
There are several different types of cost you need to be prepared:
- The cost of purchasing the goods
- Shipping and logistics costs for shipping.
- Freight handling fees at airports or ports.
- Insurance costs if you sign up
Step 8 – Make sure your goods are labelled accurately
Your goods must also be properly labeled. It will be necessary to display the country of manufacture and of origin, a complete description of the merchandise, the address of the recipient and that of the sender. The labels are in English attached so that it can be seen very easily on the cardboard.
Step 9 – If in doubt, check with the authorities
Each import will be different from the previous one. It is necessary to check all the information that you can find in the advice that we give you above. If you need you can talk to the customs coordinates are available below.
Contact them on the following link: Australian authorities
Step 10 – Paying for your goods in foreign currency
It is not easy to import products, the payment of suppliers from abroad is an example. For example, you can use OFX. They are specialists in international payments for Australian companies. Each customer of this company is going to have a personal manager providing forward exchange contracts for example.