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

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

Shifting goods across international borders isn't just about jumping on the next flight or pointing your ship towards the horizon; it also involves negotiations with complex tariff grids and intricate tax formulas. Whether it's a heart-shaped glass bottle or a rattan basket, understanding how to compute import duties and taxes from Thailand to Egypt is fundamental to smoothly sailing through custom procedures and avoiding any unwelcome surprises.

The first step in this journey is fairly straightforward: identify the country where the goods were produced or manufactured. This is crucial as it sets the stage for the whole customs process, including the estimation of duties and taxes. This is the key to unlock the door to your successful import-export business. Importing from Thailand to Egypt? Roll up your sleeves and let's dive in!

Step 1 - Identify the Country of Origin

Knowing the country of origin of your goods is the first crucial step to estimate duties and taxes. Here's why:

1. It determines the applicability of trade agreements.
2. Regulatory bodies use it to assess controls and prohibitions.
3. The customs value of goods often depends on their country of origin.
4. Import restrictions vary based on the country of origin.
5. It impacts the tariff classification of goods.

Thailand and Egypt have a Free Trade Agreement (FTA), reducing or eliminating customs duties. You should examine if your goods qualify under this agreement to enjoy duty savings.

Awareness of import restrictions marks a difference. For example, Egypt has banned imports of specific items like used car tires from Thailand.

To save time and avoid trouble, make sure you understand these restrictions before deciding to import a product.

Remember, understanding the origin of items and how it affects your shipment is not just a step in the process, but a fundamental aspect of importing that can save you from considerable challenges. Know the origin and navigate the journey of your imports with confidence.

Step 2 - Find the HS Code of your product

The Harmonized System Code, often simply referred to as the HS Code, is a crucial aspect of international trade. This standardized numerical method of classifying traded products is recognized and used globally by customs authorities. The primary use of these codes is to regulate the tariffs that apply to goods and to streamline the process of importing and exporting goods.

Generally, an efficient way to ascertain your product's HS Code is by reaching out to your supplier. These suppliers are well-versed in applicable HS Codes because they frequently deal with importing and exporting goods and are well-acquainted with the corresponding regulations.

In the event that consulting your supplier is not possible, do not fret. We have an easy-to-follow process for you to find the HS Code. Begin by visiting this Harmonized Tariff Schedule search tool. Input the name of your product into the search bar, and then check the 'Heading/Subheading' column. This is where you'll find your product’s HS Code.

Please remember that while finding the code is straightforward, ensuring its accuracy is paramount. If you incorrectly identify your product's HS Code, it may result in delays due to customs complications. In some cases, incorrect classification could even lead to fines.

Here's an infographic showing you how to read an HS code. Do invest time to familiarize yourself with it—it will help you understand the process even better. Remember, comprehension of these codes is invaluable in ensuring smooth international business operations.

Step 3 - Calculate the Customs Value

Calculating the customs value might seem daunting, but it's an essential part of shipping your goods from Thailand to Egypt. The value isn't just the price you've paid for the products. In fact, it's the cost-insurance-freight (CIF) value - a sum that includes the price of your goods, the international shipping cost, and the insurance cost.

For example, let's assume your widgets cost $2000, international shipping is $500, and insurance is $100. Your CIF value, then, is $2000 (product cost) + $500 (shipping) + $100 (insurance) = $2600. This CIF value is what Egyptian customs will use to calculate the customs duties you owe. Remember, understanding this step is key to avoiding unexpected importation costs.

Step 4 - Figure out the applicable Import Tariff

An import tariff is essentially a tax imposed by a government on imported goods. It increases the cost of the goods for importers, which they often pass onto customers as higher prices. For Egypt, specifically, there exists a Harmonized System Tariff which is used internationally.

Let's illustrate this with an example. Suppose, you're shipping plastic kitchenware from Thailand to Egypt with an HS code 392410. Here's the process you'll follow:

1. Visit the official website for Egyptian Customs and find their Tariff Search tool.

2. Enter the HS code (392410) and the country of origin (Thailand).

3. The system will display specific duties and taxes applied to your product, let's assume it shows a tariff rate of 10%.

Additionally, apart from the basic tariff, you will also need to pay Cost, Insurance, and Freight (CIF) charges which vary based on different factors. For instance, if your CIF costs were $10,000, your import duty would be $1,000 (10% of $10,000).

Step 5 - Consider other Import Duties and Taxes

While the standard tariff rate is a common cost you might expect when importing goods from Thailand to Egypt, that's not all there is to it. It's critical to be aware of other dues that depend on the origin of your items and their type.

Take, for instance, the excise duty. This is an extra fee charged on goods like tobacco or alcohol. Let's say you transport wine valued at $10,000, and the excise duty is 100%. You'd be looking at an additional $10,000 here - quite significant!

Also note the anti-dumping taxes - regulations to protect Egyptian industries. If you're importing steel from Thailand at $500 per ton, and Egyptian industries sell it at $1000 per ton, you might face an anti-dumping duty to bridge this price difference.

The VAT rate, though, holds prime importance. It's calculated on the value of the goods plus the customs duties. So, if the VAT is 14% and your goods cost $10,000 with a $1,000 duty, you'll owe $1,540 in VAT.

Bear in mind, these are hypothetical examples, actual taxes can differ, but they underscore the necessity for careful calculations. Dealing with additional costs can turn into a slippery slope if not meticulously arranged and planned. Always equip yourself with the knowledge of all potential expenses to avoid unpleasant surprises!

Step 6 - Calculate the Customs Duties

Step 6 helps you understand how to compute customs duties in Egypt for goods imported from Thailand. The basic formula is: Customs Duty + Value Added Tax (VAT) + Anti-Dumping Taxes = Total Customs Duty.

Let's examine this through three examples, using each element of the formula.

1. For a shipment valued at $5000 with a customs duty rate of 5%, your customs duty is $250 (5% of $5000). There's no VAT in this case, so you owe $250.

2. Now, let's add a VAT rate of 15%. For a $6000 shipment with a 10% customs duty rate, you pay $600 in customs duties. Then, the VAT is computed on the goods value plus the customs duty ($6600), thereby amounting to $990 ($6600 15%).

3. Let's go all-in with a $7000 shipment. Assuming customs duty at 10% ($700), VAT at 15% ($1125 computed on $7700), anti-dumping taxes at 5% ($385 computed on $7700), and Excise Duty of 20% ($1540 on $7700), the total works out to $3750.

Remember, miscalculations can lead to overpaying. Engage DocShipper! We ensure smooth, cost-efficient customs clearance worldwide. Contact us for a free quote in under 24 hours and never worry about overpaying again!

Bill of Lading

Navigating the maze of international shipping? Your secret weapon is the Bill of Lading - an indispensable document marking the change of ownership from seller to buyer. Whether you're sending spices from Samut Prakan or importing goods via the bustling Port of Alexandria, this paper trail is vital in the Thailand-Egypt trade lane. Improved services have paved the way for electronic (or 'telex') release, speeding up the process and minimizing hang-ups at customs. When it comes to air cargo, there's the Air Waybill (AWB), an equivalent to the Bill of Lading. Remember, a well-prepared Bill of Lading can mean the difference between smooth sailing and bumpy waters in your supply chain journey. Happy shipping!

Packing List

The Packing List is your shipping lifeline between Thailand and Egypt, crucial irrespective of whether you choose sea or air freight. Imagine this as your shipment's inventory that details what's inside your shipment. Packing List mistakes could lead to customs delays or even cargo rejection. Let's say your shipment contains 1000 ceramic vases but this isn't accurately reflected on your Packing List.

A customs officer in either Bangkok or Alexandria discovers a discrepancy and this could stall your shipment, disrupting your supply chain. As a shipper, you wear the cap of accuracy here. It's imperative to ensure every item in your shipment, be it large machinery or silk shirts, finds an accurate mention on your Packing List. A comprehensive, accurate Packing List is instrumental in breezing through customs, avoiding unnecessary hassles or delays. Happy and accurate shipping!

Commercial Invoice

Spending your busy days shipping goods from Thailand to Egypt? Then the Commercial Invoice should be your best friend. This slip isn't just a rundown of what you're shipping, but your ticket to a smooth customs clearance. Make sure it includes your business details, information about your Egyptian client, the Harmonized System (HS) code, item description, and the value of the goods. Let's say you're shipping silk fabrics—these details, when properly itemized, will help the Egyptian customs swiftly determine the appropriate duties. It's also a golden rule to keep this document consistent with your packing list and Bill of Lading. It's like syncing your devices, only this time, it's your import-export documents. Remember, a good Commercial Invoice avoids hitches and fast-tracks your shipping journey.