Freight shipping between Thailand and Hong Kong: Rates -Transit time – Duties & taxes

What is the best method of transport between Thailand and Hong Kong?

You have the flexibility to choose how you want to import or export your goods to Hong Kong, whether it's by sea or air. Each option has its own advantages and disadvantages, so our moving adviser will be there to help you determine the best choice for your specific needs.

Should I ship my goods as a groupage or a full container between Thailand and Hong Kong?

There are three primary types of standard container sizes commonly used for personal and professional transportation, and frequently utilized by merchants for various solid samples:

1. The 40-foot HQ (High Cube), with a capacity of 76 cubic meters.
2. The 40-foot container, offering a capacity of 67 cubic meters.
3. The 20-foot container, providing a capacity of 33 cubic meters.

Special transports by sea between Thailand and Hong Kong

Reefer container

A cold container, commonly referred to as a reefer, is designed to maintain a specific temperature regardless of the ambient temperature outside. This specialized container achieves this by communicating its temperature requirements to the ship's deck, enabling precise control over its internal climate.

Reefers are essential for transporting perishable goods, such as fruits, vegetables, meats, and pharmaceuticals, which require strict temperature control to preserve their quality and freshness. By effectively regulating the temperature within the container, reefers ensure that the goods remain in optimal condition throughout the entire transportation process, even in extreme weather conditions.

Roro

Roll-on/roll-off ships, commonly referred to as Ro-Ro ships, are purpose-built vessels that cater specifically to the transportation of wheeled cargo such as cars, trucks, vans, semi-trailers, and rail line carriages. These goods possess their own tires, enabling them to be easily loaded and unloaded both within and outside the ship.

Ro-Ro ships offer the most secure and effective means of handling and transporting larger or distinctive commercial merchandise. Deliveries are typically moved as a unified entity using specialized containers, seamlessly transitioning from the dock to the ultimate delivery point.

Bulk

Bulk supplies are directly loaded into the cargo holds of ships, leading to the creation of a local certification system that applies to both common and large-scale shipments. These specialized vessels, known as bulk carriers, are specifically engineered to accommodate various types of cargo, including sand, aggregates, grain, and dense materials such as minerals. They facilitate the efficient transportation of these goods, enabling smooth movement and distribution

OOG

"Out of measure or out of standard" is a term used to describe OOG (Out of Gauge) freight. OOG freight can be categorized into two types: accessible containers and plain stack containers.

Accessible containers are designed to accommodate goods that exceed the standard dimensions or weight limits. These containers allow easy access for loading and unloading purposes. On the other hand, plain stack containers are used for OOG cargo that can be stacked on top of each other without requiring direct access.

How much does sea freight between Thailand and Hong Kong cost?

Understanding both the weight and volume of your goods is crucial when making export or import decisions. This is because transportation costs are typically calculated based on the weight-to-volume ratio. However, we are able to provide an explanation regarding the computation of this process, to determine the weight/volume ratio, a standard equivalency rule is often used, which states that 1 ton is considered equal to 1 cubic meter (1 ton = 1 m³).

There is  2 options : 

• In the case of groupage, where goods are packed in various units such as bags, crates, drums, etc., the carrier has the option to use either the metric tonne (1t) or the cubic meter (1m³) as the chargeable unit. This choice is made based on the weight/volume equivalence rule of 1t = 1m³. The carrier will select the higher value between the weight and the volume to their advantage.
• On the other hand, for full containers, the freight is determined based on a fixed rate per container. This rate considers the type of container used but remains unaffected by the specific type of goods being transported.

Additional Charges

Maritime tariff surcharges are additional charges imposed by maritime transport providers that are separate from the agreed-upon party-agreement tariff and vary based on specific circumstances.

The pricing structure of maritime freight transport is known for its intricate nature.

• BAF ( Bunker Adjustment Factor ): This surcharge is directly linked to the fluctuations in crude oil prices. Shipping companies introduced this surcharge in response to the first oil crisis in 1973, considering the fuel consumption of modern vessels. Since then, it has continued to be a significant aspect in the industry.
• CAF ( Currency Adjustment Factor ): This surcharge is tied to changes in the value of the US dollar. Since the majority of ocean freight rates are calculated in US dollars, companies utilize this surcharge as a means to hedge against currency risks.
• THC ( Terminal Handling Charge ): THC, which stands for Terminal Handling Charges, represents the costs associated with the loading and unloading of cargo at the seaport. For conventional or non-containerized cargo, the THC can have a variable or fixed price, depending on the type of container used. In the case of containerized cargo, the tariff is calculated based on weight per kilogram, which may include additional charges for exceeding size or weight limits.
• Port obstruction: Port congestion occurs when there is a disparity between a port's capacity and the volume of ships it handles. This mismatch results in delays for ships waiting to unload their cargo, often enduring lengthy waits of several days. As a result, shipping companies impose an additional fee, known as a premium, to compensate for the financial losses incurred during these delays. The ports in the Persian Gulf and Mediterranean regions, such as Algeria and Libya, are particularly susceptible to experiencing congestion issues.

Main airports in Thailand                                                                                                                                     

• Suvarnabhumi Airport (BKK)
• Don Mueang International Airport (DMK)
• Phuket International Airport (HKT)
• Chiang Mai International Airport (CNX)
• Krabi International Airport (KBV)

Main Hong Kong airports 

• Hong Kong International Airport (HKG)
• Shek Kong Airfield

What are the advantages of air freight?

Air transport between Thailand and Hong Kong offers several advantages.

Firstly, air transport provides speed and efficiency. Flying between Thailand and Hong Kong significantly reduces travel time compared to other modes of transportation. A direct flight between the two destinations takes approximately three hours.

Secondly, air transport offers convenience and accessibility. Both Thailand and Hong Kong have well-developed international airports, ensuring easy access.

Lastly, air transport facilitates the transportation of goods and promotes international trade. It enables the efficient movement of cargo, promoting economic growth and facilitating business transactions between Thailand and Hong Kong.

What are the disadvantages of air freight?

Air freight can be costly, and it may not be feasible to transport exceptionally heavy items. Additionally, the heightened security measures at airports can result in time delays during the inspection process.

How much does air freight transport between Thaïland and Hong Kong cost?

How do you calculate the volumetric weight of your shipment?

Volumetric weight refers to the space occupied by a package, taking into account its dimensions and gross weight. To calculate it, you need to measure the package's length, width, and height, and convert them into cubic meters. Afterward, you can utilize the following formula:

Volumetric weight = (length x width x height) / 5000

Customs Clearance in Hong Kong for items imported from Thaland 

When importing items from Thailand to Hong Kong, the customs clearance process follows certain procedures and requirements. To ensure a smooth clearance, you will need to provide several documents to the Hong Kong customs authorities.

Firstly, you will need to submit a commercial invoice, which should include details such as the description of the imported goods, their quantity, value, and the terms of sale. A packing list, containing a detailed breakdown of the contents and their packaging, is also required. Additionally, you will need to provide a bill of lading or air waybill, which serves as proof of shipment and ownership.

In Hong Kong, certain goods may be subject to restrictions or prohibitions. It is essential to familiarize yourself with the specific regulations governing the importation of your goods. If your items fall into controlled categories, such as hazardous materials or restricted substances, you may need to obtain permits, licenses, or certificates from the relevant authorities in Hong Kong before proceeding with customs clearance.

During the customs clearance process, your goods will be inspected by the Hong Kong customs authorities. They will assess the applicable duties, taxes, and any other fees based on the value and nature of the imported items. Once the duties and taxes are paid, and all necessary documents are in order, the customs authorities will release your goods, making them accessible to you.

To ensure a successful customs clearance, it is crucial to accurately complete all required documentation and comply with the customs regulations and procedures of both Thailand and Hong Kong. Keeping yourself informed of any changes in customs rules and maintaining good communication with your customs agents or freight forwarders can help facilitate a smooth clearance process for your imported items.

What are the customs duties and taxes?

Customs duties and taxes are fees imposed by the government on imported goods. These charges are levied to generate revenue for the country and regulate trade activities. When importing items from Thailand to Hong Kong, you can expect to encounter the following types of customs duties and taxes:

• Import Duty: This is a tax levied on the value of imported goods. The rate of import duty varies depending on the nature of the goods and the Harmonized System (HS) code under which they are classified.
• Value Added Tax (VAT): Hong Kong imposes a VAT known as the Goods and Services Tax (GST) on imported goods. The current standard rate is 0%, which means that most goods are exempt from VAT. However, certain goods may still be subject to VAT at a rate of 5% or a specific rate depending on their classification.
• Excise Duty: Excise duties are specific taxes imposed on certain goods, such as alcohol, tobacco products, and petroleum. These duties are intended to regulate consumption and discourage excessive use.

How to calculate customs duties and taxes

To determine the amount of customs duty, you need to add the entire value of the imported item to the applicable consumption tax, environmental protection rate (if applicable), and tax rate.

To calculate the value-added tax (VAT), you multiply the entire cost of the imported product (including import tax) by the VAT rate.

To determine the special consumption tax, you simply multiply the value of the product by the appropriate SCT rate.

For the environmental protection tax, you multiply the number of taxable commodities by the EPR rate.

To calculate all the taxes applicable to importing into Hong Kong, you need to perform the following computation:

import duty + VAT + any applicable TCS + EPT (if applicable)

How to get your HS code?

The best approach is to ask your seller.

If your seller is unable to provide the information, the recommended approach for safety and efficiency is to visit the HS code (Harmonized System) website. The process is straightforward: just enter your desired term in the search field and review the displayed results. Let's use "pineapple" as an example.

You can consult this website to know the HS code of the Thailand products.

Calculating customs duties with the HS Code

Now that you have the HS code of your products, you can find the associated tariffs on the website of the government of Hong Kong.

Here is a small illustrated guide to show you where find your information :

Then, consult taxes applicable to your product.

Does Siam Shipping charge duties?

As part of our standard obligations, we will not accept payment from you. To demonstrate this, we will provide a refund of the information received from Thailand Customs. Only the expenses related to the creation of a regulatory information document will be eligible for a waiver. Siam Shipping will handle the collection of these customs leniency costs as we will be responsible for generating the necessary paperwork on your behalf. The government will be responsible for collecting the fees associated with customs procedures.

Customs procedures and contact

Hong Kong Customs

Name: Customs and Excise Department

Official website: Hong Kong Customs

Thai Customs

Official name: Customs Department of Thailand

Official website: Thai Customs Website

Required documents

Bill of lading: The bill of lading, which serves as proof of transportation, confirms the exporter's delivery of the specified products. This document not only provides evidence of shipment but also holds legal significance. Furthermore, it contains all the necessary information for handling the freight and generating accurate invoices.

The packing list: A packing list is generated by shippers for all parties involved in the supply chain. This essential document is a mandatory requirement for both air and sea freight shipments, as it contains comprehensive details about the products and packaging included in each consignment. It serves to provide a comprehensive overview of the contents of the shipment to ensure smooth handling and logistics operations.

Certificate of Origin: The certificate of origin serves as a confirmation of the country where the goods were produced. It is important to note that the country of manufacture should not be mistaken for the place of origin of the goods. This document is a vital requirement in international trade, as it provides necessary information regarding the origin of the goods being transported.

Health certificate: The health certificate is an official document issued by the relevant authorities after thorough inspection, verifying that the products meet the required standards defined by legislation regarding production hygiene, microbiological standards of food products, and animal health.

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