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

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

Understanding how to estimate duties and taxes for imports from Thailand to Denmark can streamline your shipping process significantly and eliminate unexpected costs. At the core of this calculation lie five critical variables - the country of origin, the Harmonized System (HS) Code of your goods, the Customs Value, the Applicable Tariff Rate, and any other taxes and fees that may apply to your products.

The process commences by identifying the country where the goods were initially manufactured or produced. This key piece of information will guide the rest of your customs duty calculation as the origin country often influences the tariff rates. The aim is to make this stage as stress-free as possible, putting you right back on track to oversee your business operations smoothly.

Step 1 - Identify the Country of Origin

Knowing your goods' country of origin is a key first step to estimate duties and taxes for import from Thailand to Denmark. Why? Here are five reasons:

1. Trade Agreements: Thailand and Denmark share beneficial trade pacts as part of the larger EU-ASEAN region treaties. These agreements often lead to seemingly zen-like calm reductions in customs duties.

2. Precise Customs Duties: Depending on the origin country, Denmark assigns distinct tariff rates. Not distinguishing between 'Made in Bangkok' or 'Created in Copenhagen' may result in unnecessary overpayment of duties.

3. Eligibility Checks: Some goods qualify for 'preferential treatment' leading to lower duties. An accurate origin country identification can open this path.

4. Compliance with Import Restrictions: Denmark has certain restrictions on imports from various countries. By noting origin, you avoid legal hassles and smooth your product’s passage into Danish territory.

5. Credibility Boost: Correct declaration shows your professionalism, reassuring customs authorities and enhancing your brand credibility.

Struck a powerful pose and pore over these details - they can lead to significant cost savings and smoother operations! Stay tuned to our guide for the next steps. Happy shipping!

Step 2 - Find the HS Code of your product

The Harmonized System Code, commonly referred to as HS Code, is a standardized numbering system for classifying traded goods internationally. This universal system allows customs authorities everywhere to recognize and categorize the nature of the products moving across borders - an essential aspect when calculating duties and taxes or implementing trade policy.

Often, the most straightforward way to obtain the HS Code of your product is to ask your supplier directly; as they are typically well-versed in the products they're exporting and the associated regulations.

However, if that's not feasible, there's an alternate route that you can follow to ascertain the HS Code of your product. Let's break it down:

1. Visit the Harmonized Tariff Schedule, a comprehensive HS lookup tool available for public use.
2. Use the search bar to input the name or a brief description of your product.
3. Check the 'Heading/Subheading' column, where you can locate the HS Code for your product.

It's vital to note that accuracy while identifying the HS Code is crucial. A misplaced or incorrect HS Code can lead to an array of complications, like delays in shipping, incorrect calculation of duties, and potentially hefty fines. Hence, exercise utmost precision while navigating this process.

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

Step 3 - Calculate the Customs Value

Understanding customs value can feel a little complicated, but don't worry, we're here to make it plain sailing for you. In a nutshell, customs value differs from the product value as it includes not just the product's price, but also the cost of international shipping and insurance expense. To make it crystal clear, it's like a three-layered cake - with your goods as the base layer (the price of your goods), the shipping cost as the middle one, and insurance as the top layer.

This is what we call the CIF - Cost, Insurance and Freight value. Let’s break it down with a fictional scenario: Your product costs $1000 (USD), with an international shipping fee of $200, and insurance at $50. The customs value (CIF) for this would be $1250 in total. Use this as your guiding principle to make your goods transition a complete success.

Step 4 - Figure out the applicable Import Tariff

Import tariffs, or customs duties, refer to the taxes imposed on goods when they cross international borders. In Danish import procedures, these tariffs are based on the Harmonized System (HS) code, which classifies each type of goods for customs purposes.

As a member of the European Union, Denmark uses the TARIC system, an online tool that helps identify the exact tariff applied to specific products. To determine the import tariff for goods imported from Thailand, follow these steps:

- Login to the TARIC System - European Customs.
- Input the HS code identified earlier, and select Thailand as the origin country.
- The system will display the corresponding duties and taxes for your product.

Let's consider an example. You're importing wooden furniture (HS Code: 9403.60) from Thailand, and the CIF (Cost, Insurance, Freight) is $5000. The TARIC system shows a tariff rate of 2.7%. To calculate the import duties, multiply the CIF value by the tariff rate: $5000 0.027 = $135. Hence, your import duty will be $135.

Remember, precise tariff identification is critical not only for cost estimation but also for ensuring smooth customs clearance.

Step 5 - Consider other Import Duties and Taxes

Importing goods from Thailand to Denmark involves more than just meeting the standard tariff rate. Your total import costs can sometimes comprise additional import duties and taxes depending on the specifics of your shipment. Here's a brief outline:

Excise Duty: This is a tax levied on certain goods, mainly alcohol, tobacco, and energy products. Say, you import whiskey worth $2000, and the excise duty in Denmark is 100% - you'd shell out an extra $2000 as excise duty.

Anti-dumping Tax: This aims to prevent importing goods sold at a price substantially lower than their market value. For instance, if you import steel products that usually cost $5000 but get it for $4000 from Thailand, a 30% anti-dumping duty on the $1000 difference (i.e., $300) may be levied.

Value Added Tax (VAT): This is often the elephant in the room. In Denmark, the standard VAT rate is 25%. Therefore, if you import goods valued at $10,000, you could be facing a hefty $2500 as VAT.

Remember, the rates provided are hypothetical and actual rates may differ. Manage your expectations accordingly, and always prepare for these potential extra costs when budgeting your import project.

Step 6 - Calculate the Customs Duties

In this sixth step, we tackle customs duties - a fee levied on imported goods. Calculating this requires certain specifics, namely, the customs value, Value Added Tax (VAT), anti-dumping taxes, and Excise Duty.

Let's look at three scenarios.

1. If you're importing wooden furniture worth $10,000 from Thailand with no VAT applied. If the customs duty rate is 3% for this item, your customs duty is $300 (3% of $10,000).

2. Now, let's say you're importing silverware worth $20,000, with a customs duty of 5% and VAT of 20%. Your customs duty is $1,000 (5% of $20,000), and your VAT is $4,200 (20% of $21,000, which is the customs value plus customs duty).

3. Finally, imagine you're importing leather bags worth $15,000. If a customs duty of 5%, VAT of 20%, anti-dumping tax of 10%, and Excise Duty of 2% are applied, you'll have $750 in customs duty, $3,150 for VAT (20% of $15,750, customs value plus customs duty), with an anti-dumping tax of $1,500 and an extra $316 for Excise Duty.

Calculating these duties can be complicated, but with DocShipper customs clearance service, we ensure every step is accurately handled to prevent excessive charges. Contact us for a free quote within 24 hours and let us make your shipping seamless.

Bill of Lading

Navigating shipping nuances between Thailand and Denmark? The Bill of Lading is your secret sauce! It's an all-important shipping document that passes the ownership baton from shipper to receiver. Think of it as your contract of carriage and proof of delivery, all wrapped in one! Now, there's a techier side: the electronic (or telex) release. It digitizes your Bill of Lading, marrying convenience with efficiency—no more snail mail or paper chase. Great for the planet, too!

For air cargo, the Air Waybill (AWB) steps up, serving similar functions. Remember, keeping accurate, organized paperwork will make your customs process smoother and faster, letting your goods move hassle-free from the vibrant markets of Bangkok to the bustling ports of Copenhagen. After all, accuracy and detail matter—especially in international shipping!

Packing List

Shipping your goods from Thailand to Denmark requires some essential steps, one of which is preparing a Packing List. Think of it a bit like your flight boarding pass when you're traveling—it's essential. Accurate and complete information on this document is critical as it helps customs officials understand what's coming into the country. Not just a bunch of boxes, but the specific contents of your shipment, their quantities, and weight.

Let's say the shipment contains Thai silk fabrics. The Packing List should detail not only that the shipment contains silk fabrics but also the number and weight of fabrics. Shippers bear the full responsibility for ensuring accuracy. This non-negotiable document is mandatory for both sea and air freight.

Got it all right? Excellent! With this powerful document in hand, your goods will be boarding their flight or ship, ready to be greeted by the welcoming arms of Danish customs officials. No Packing List, no shipping—simple as that!

Commercial Invoice

Navigating the customs clearance between Thailand and Denmark can be complex, but the Commercial Invoice is your vital first step. This document records specific details such as product descriptions, country of origin, price, currency, and buyer's and seller's information. A word of advice? Always ensure your values are consistent across different shipping documents - inconsistencies can lead to delays.

But, here's the real kicker - pay special attention to describing your goods accurately. Avoid generic descriptions like 'samples'. Instead, use '10 cotton T-shirts'. Clarity in your Commercial Invoice leads to smoother, faster customs clearance. Remember, a precise and correctly completed Commercial Invoice isn't just a document, it's your ticket to a hassle-free shipping journey from Thailand to Denmark.

Certificate of Origin

Nailing customs clearance between Thailand and Denmark isn't a piece of cake. One crucial document to get right is the Certificate of Origin. This isn't just a piece of paper – it’s your proof that the goods you're exporting were indeed manufactured in Thailand. With it, you could be eligible for preferential customs duty rates. Let's imagine you're exporting Thai silk to Denmark.

By correctly providing your Certificate of Origin, you could take advantage of lower tax rates under trade agreements between the 2 nations, saving your business money. So, don't underestimate it! Your Certificate of Origin could be the stepping stone to smoother, more affordable shipping operations.

Certificate of Conformity (CE standard)

For businesses shipping goods from Thailand to Denmark, understanding the necessity of a Certificate of Conformity to the CE standard is crucial. This isn't a mere quality assurance marker, but a compliance declaration indicating that your products meet European Union regulations. Unlike the voluntary American system where industry standards direct conformity, European market entry necessitates CE marking.

Therefore, when preparing your shipment from Thailand, each product intended for Denmark must include this Certification to facilitate customs clearance, ensuring a smooth transition into the European market. To navigate this, engage an accredited certification body for CE conformity assessment of your goods before shipping. Ultimately, this step helps you avoid shipment delays and foster trust with your Danish counterparts.