Freight Shipping between Thailand and Czechia | Rates – Transit times – Duties and Taxes

How to calculate duties & taxes when importing from Thailand to Czechia?

Understanding how to estimate duties and taxes while importing from Thailand to Czechia is essential for your successful shipping venture. In order to calculate customs duties precisely, several elements come into play. Firstly, you need to identify the country of origin, which is where your goods are manufactured or produced. This is a crucial piece of the puzzle, as both the exporting country, in this case Thailand, and the importing country, Czechia, will use this to determine which trade agreements or conditions apply.

Next, you must identify the HS Code of your product, essential for categorising goods according to a standardized nomenclature. The Customs Value then comes into play - this is the complete cost of your products, including the purchase price, transportation, and insurance costs up to the port of entry.

Following these, the Applicable Tariff Rate is to be determined - this rate is applied to the Customs Value to calculate the actual duty. There may be additional taxes, and fees that you need to account for depending on the product type and import regulations of Czechia.

Remember, initiating this process means determining specifically where the goods you're transporting were produced. This should be your first step in calculating customs duties for your imported goods.

Step 1 - Identify the Country of Origin

Knowing the Country of Origin is key in international trade. Here's why:

1. Trade Agreements: Thailand and Czechia, being part of the European Free Trade Association and ASEAN respectively, enjoy certain duty relaxations. Knowing specific deals can help you save on costs.
2. Customs Duties: Determining the origin country decides the duty amounts under the Harmonized System codes.
3. Product Regulations: Different countries have specific product safety and standards regulations. Making sure your goods comply saves you from legal troubles later.
4. Import Restrictions: Certain goods have stringent restrictions or might be completely banned. Steering clear of these goods provides a smoother transport experience.
5. Documentation: Smooth customs clearance comes from precise documentation reflecting the correct country of origin

Take advantage of the bilateral trade agreements, like the recently negotiated EU-ASEAN agreement that has further slashed duties on numerous goods. Be aware of specific import restrictions, like the ones Czechia imposes on certain agriculture and animal products from Thailand. Bid adieu to import hassles by identifying your goods' Country of Origin accurately from the start.

Step 2 - Find the HS Code of your product

The Harmonized System (HS) code plays a pivotal role in global trade, as it provides a standardized method of classifying products. These six to ten digit numbers are universally recognized, allowing each product to be identified easily during the import-export process, whether it's by customs officials or by your own freight forwarder.

You can often obtain the HS code of your product directly from your supplier since they are accustomed to export processes and likely already have this information at their disposal.

When sourcing HS codes isn't feasible from your supplier, you can always conduct your own search by utilizing an HS lookup tool. An excellent choice for this is the 'Harmonized Tariff Schedule' tool.

To find the HS code using this tool, break down your search into these three steps:

1. Access the 'Harmonized Tariff Schedule' lookup tool using this link.
2. Type the name of your product into the search bar.
3. Review the Heading/Subheading column for your HS code.

Please note that accuracy is crucial when choosing your HS code. An incorrect code may result in unexpected delays, additional costs, and potential fines.

Here's an infographic showing you how to read an HS code.

Step 3 - Calculate the Customs Value

Understanding the 'Customs Value' can seem tricky, but let's demystify it together. Imagine you've bought a batch of wooden furniture from Thailand for, say, $1000. That's not your customs value. It sounds confusing, right? Let's unscramble it. The customs value includes the cost of your goods, international shipping, and insurance. This whole sum is commonly known as the CIF value (Cost, Insurance, and Freight).

Say, for instance, your shipping cost is $200 and insurance is $50, your customs value sums up to $1250, not just the $1000 you paid for the goods. It's crucial to get this right because the Czech customs authorities will use this CIF value to calculate any import duty. By understanding your Customs Value, you can accurately anticipate your overall shipment expenses. Keep your invoice breakdown handy and you'll breeze through the calculations.

Step 4 - Figure out the applicable Import Tariff

Import tariffs are essentially the tax levied on goods crossing international borders. For goods imported from Thailand to Czechia, which is part of the European Union, the applicable tariff can be determined using the TARIC System - European Customs.

Here's how you determine your import tariff:

1. Go to the TARIC Consultation Tool and enter the Harmonised System (HS) code derived in the previous steps along with Thailand as the country of origin.
2. The tool will display the duties appropriate to your product.

Let's apply this: Assume your product's HS code is 610510 (men’s or boys’ shirts of cotton, knitted). The tool shows a tariff rate of 8% for this product category. For illustration purposes, let's say your Cost, Insurance, and Freight (CIF) costs total to USD 5000.

So, the import duties would be 8% of USD 5000, which equals USD 400. This way, you can determine the cost of importing your goods into Czechia from Thailand and plan your budget accordingly.

Here's a screenshot to guide you:

You should insert the HS Code in the "Goods code" section, along with the country of destination. Once this is done, click on "Retrieve Measures" and you will be able to see the duties and taxes, here's what it should look like:

Step 5 - Consider other Import Duties and Taxes

When shipping goods from Thailand to Czechia, standard tariff rates apply, but watch out for additional import duties. Depending on the product and country of origin, you might encounter these extras!

Excise duty is often slapped on specific products, such as tobacco, alcohol, or energy products. Another potential is anti-dumping taxes, usually applied when a foreign producer sells goods in pretty much 'dumping' prices, potentially disrupting the local market.

But the heaviest additional charge usually comes from VAT, critical to factor into your costings. In Czechia, the standard VAT rate is 21%, with reduced rates of 15% or 10% for specific types of goods. To calculate what you'll owe, add the customs value to the duty paid, and then apply the VAT rate.

For example - if the customs value of your shipment is $10,000, and the duty is $500, your VAT would be $2,210 (21% of $10,500). Bear in mind these are hypothetical numbers, and rates may vary.

Remember, forewarned is forearmed. By anticipating these charges, you can build a cost-effective and efficient shipping strategy.

Step 6 - Calculate the Customs Duties

Calculating customs duties for goods imported from Thailand to Czechia can be a complex process - but you've got this! Start off by defining the customs value of your goods, which includes the purchase price plus insurance and freight to Czechia.

For our first example, say your customs value is $10,000 and the customs duty rate is 5%. Here, your customs duty would be $500 ($10,000 5/100), with no VAT involved.

In the second scenario, with both customs duties and VAT, say the customs value is $20,000 with the same 5% duty rate and a VAT of 21%. Your customs will come to $1,000 ($20,000 5/100), and your VAT will be $4,410 (($20,000+$1,000)21/100), totaling $5,410.

Our last scenario includes customs duties, VAT, anti-dumping taxes, and Excise Duty. If you have a customs value of $30,000, a duty rate of 10%, a VAT of 21%, an anti-dumping duty of 10%, and a $2 per unit Excise Duty for 1000 units, it gets a bit more complex. Your customs duty will be $3,000 ($30,000 10/100). The anti-dumping duty will be $3,300 ($30,000+$3,000)10/100. Then, your VAT would be $7,860 (($30,000+$3,000+$3,300)21/100). Finally, your Excise Duty is $2,000 ($21000). This means your total taxes come to $16,160.

Sound overwhelming? At DocShipper, we specialize in customs clearance worldwide and can streamline the process to ensure you don't overpay. Contact us for a free quote in less than 24 hours, and let us take this load off your shoulders.

Bill of Lading

Shipping goods between Thailand and Czechia? Then you'll be needing a Bill of Lading. This document is your golden ticket in global logistics, marking the transfer of ownership from supplier to buyer. Its importance cannot be overstated. But did you know there's also a digital counterpart? The Telex release enables secure electronic transfer of this document, speeding up the delivery process, making it a win-win for all parties involved. For air shipments, don't forget the AWB (Air Waybill): it's the air freighting cousin of the Bill of Lading. These essentials will help streamline your customs clearance, ensuring your goods reach their destination swiftly and hassle-free. Stay ahead of the game; understand your documents.

Packing List

The Packing List is like your shipping inventory; it's a testament to your organized approach in transporting goods from Thailand to Czechia. Sea or air, it doesn't matter - without a comprehensive packing list, no container gets a go-ahead. It's the shipper’s responsibility to list down every item in the load, meticulously detailing the description, quantity, and often the value too.

Why so much fuss? A Packing List maintains complete transparency with customs officials, eliminating unnecessary delays. Say you're sending 5000 hand-stitched summer hats from Chiang Mai to Prague, the list helps the customs check if there's anything suspicious hiding among your delicate hats. No surprises, no hassles. A clearly formatted packing list might be your golden ticket to a smooth shipping experience.

Commercial Invoice

Commercial Invoice, the star player in your shipping journey from Thailand to Czechia, holds essential details like seller and buyer data, product description, HS codes, etc. It's the first point of review for Czech customs. Overlooking details? Not a good idea. Keeping it accurate with other shipping documents? Critical. Realize that wrong data on your invoice screams delay in customs language. And time equates to money in international freight.

So, double-check matching details on your Bill of Lading, especially the consignee and shipper's information. Remember, uniformity is key to a smooth customs clearance process. Save your business the hassle, get your Commercial Invoice right and tight!

Certificate of Origin

When navigating the shipping journey from Thailand to Czechia, don't underestimate the power of your Certificate of Origin. This key document can unlock some sweet customs benefits, like preferential duty rates, making your cargo's voyage more cost-effective. Let's say, for example, your shipment is a batch of lovely Thai rice – indicating Thailand as the 'country of manufacture' on this certificate can reduce the amount of customs duty you're charged in Czechia. Because, let's face it, any savings in shipping are a big deal. But remember, accuracy is crucial here - this isn't the place for guesswork. A little effort spent on correctly documenting the origin of your goods can lead to significant savings on your bottom line. Happy shipping!

Certificate of Conformity (CE standard)

When shipping from Thailand to Czechia, a crucial document for customs clearance is your Certificate of Conformity (CE standard). Like a passport for your goods, this attests they meet all the necessary European market safety, health, and environmental protection requirements. Note, it's distinct from your quality assurance as it exclusively tends towards European regulatory standards. If your product was previously catering to US standards, you could find differences, as CE standards often appear stricter.

Remember CE marking is not a quality indicator, but a regulatory mark mainly concerned with the safety of the product. If your goods lack this, they might be blocked at the Czechia border. In this way, CE standard can open European doors for your products. Even in the post-Brexit world, Czechia remains integral to Europe, hence CE standard is non-negotiable. Use it as an opportunity rather than a hurdle. Reframe your perspective, and enjoy smooth shipping between Thailand and Czechia.