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

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

To calculate the accurate customs duties when importing from Thailand to Ireland, there are several factors that you'll need to consider. It all starts with knowing the country of origin - that is, where your goods were manufactured or produced. The Harmonized System code (HS Code), gives a numeric identification of your products, playing a pivotal role in calculating duties. The Customs Value, which includes the cost of the products, the shipping cost, and insurance fees, is taken into account.

Lastly, knowing the Applicable Tariff Rate, as well as any other taxes and fees that may apply to the product, are crucial steps in the process. So, to kick start your goods importing journey, the first step you need to take is to correctly identify the country where your goods were manufactured or produced.

Step 1 - Identify the Country of Origin

Knowing your goods' country of origin, in this case Thailand, plays a pivotal role in estimating duties and taxes. First, it helps you understand and foresee any possible trade restrictions that could disrupt your shipping process. Second, being aware of the go and no-go items specific to Thailand can prevent possible contingencies. Third, your customs duties can significantly change due to trade agreements between Thailand and Ireland. For instance, products of Thai origin could benefit from reduced or waived duties under set agreements. Fourth, arranging paperwork gets easier when you're familiar with the country of origin protocols. Finally, it's about precision. Your prediction of duties and taxes becomes more accurate, minimizing unforeseen costs.

As it stands, some solid trade agreements between Thailand and Ireland can significantly affect your duty calculation. An example is the EU-Thailand Cooperation Agreement, which promotes equitable trade between the two nations. Get acquainted with such agreements to leverage potential savings. When importing, be mindful of restrictions on goods like precursors, cultural goods, or certain types of live animals from Thailand. These practical steps will smooth your shipping process and prevent unexpected hurdles.

Step 2 - Find the HS Code of your product

The Harmonized System (HS) code is a globally standardized system of names and numbers for classifying traded goods. Introduced and governed by the World Customs Organization (WCO), the HS code is crucial in international trade including key areas such as tariffs, trade policy, monitoring of controlled goods, rules of origin, freight tariffs, transport statistics, price monitoring, quota controls, and economic research and analysis.

The quick and easy way to find the HS code of a product is to ask your supplier. They are likely to be well-versed with what they're importing and the corresponding regulatory norms. Yet, if that's not possible, don't worry - the process of obtaining an HS code is seamless. Here's how you do it:

Step 1: Visit the Harmonized Tariff Schedule website.
Step 2: Enter the name of your product in the search bar.
Step 3: Scroll to the 'Heading/Subheading' column to find the HS code.

It's essential to note that accuracy is paramount when assigning the HS code. An incorrect code can lead to shipping delays and potential fines. So ensure you select the right one.

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

Step 3 - Calculate the Customs Value

When importing goods from Thailand to Ireland, understanding how Customs Value is calculated can save you unnecessary expenses and delays. It differs from the product's value as it's not simply the price you paid for the goods. Rather, customs value refers to the CIF value, a crucial part of your import calculations standing for Cost, Insurance, and Freight.

Consider this example. Let's say you’ve bought products from a supplier in Thailand for $10,000. Your freight forwarder charges $1,000 for shipping and the insurance costs $100. The customs value in this case would be $11,100 (10,000 + 1,000 + 100). This amount is what Customs in Ireland uses to calculate duties and taxes. Being aware of this formula can lead to a smoother clearance process and potentially reduced costs.

Step 4 - Figure out the applicable Import Tariff

Import tariffs are taxes levied on goods imported into a country. For Ireland, which is part of the European Union, these tariffs can be classified by product based on an internationally recognized system of HS codes (Harmonized System codes). Each product has a unique tariff that you can identify using the TARIC Consultation Tool of the EU, mainly known as the TARIC System - European Customs.

For instance, under the HS code 610910 which applies to T-shirts, the TARIC system shows a 'Most-Favoured Nation duty rate' of 12%. You'll need to enter the HS code and specify Thailand as the country of origin. The tool provides the duties and taxes applicable.

Now, let's calculate the import costs. Assume a CIF (Cost, Insurance and Freight) of $8000. Import duties are calculated as a percentage of the CIF value. In this case, it would be 12% of $8000, which amounts to $960.

Remember, the actual tariff can vary depending on various factors like trade agreements and the specific type of goods being imported, so it's always crucial to check the TARIC system for the most accurate info.

Here's a screenshot to guide you:

Start by adding your HS Code to the "Goods Code" section, along with the country of origin. Once this is done, click on "Retrieve Measures" and you will be led to a page where you can access and view the taxes and duties of your product.

Here's what the page looks like:

Step 5 - Consider other Import Duties and Taxes

Importing goods from Thailand to Ireland often involves paying more than just the standard tariff rate. Based on the product's origin and nature, you could face various import duties. For instance, you might pay excise duty on items like alcohol or tobacco. Additionally, anti-dumping taxes could apply if goods of a certain type are deemed to be sold significantly below their market value.

However, the one charge you can never avoid is the Value Added Tax (VAT). Import VAT is charged as a percentage of the total value of the goods, including costs such as shipping and insurance. As an example, suppose your goods are worth $5,000 with $500 in shipping. If the import VAT rate is 20%, your VAT would be ($5,000 + $500) 20% = $1,100.

Please note, these figures are merely examples and the actual rates may vary. Always confirm the current rates and possible duties with the appropriate customs authority. Understanding these duties lets you calculate potential costs ahead of allowing for a smoother import process.

Step 6 - Calculate the Customs Duties

Calculating customs duties can be a bit tricky, but it's an integral part of your cargo's journey from Thailand to Ireland. It involves factoring in several costs, such as the customs value of your goods, Value Added Tax (VAT), anti-dumping taxes, and sometimes Excise Duty.

To give you a better idea, let's run through three examples:

1. You're shipping a product worth $1000 with a customs duty rate of 10% but no VAT. You simply multiply the customs value by the duty rate. So, $1000 10% = $100 customs duty. Pretty straightforward, right?

2. Now, suppose you're shipping an item worth $2000 with a customs duty of 15% and a VAT rate of 20%. First, calculate the customs duty ($2000 15% = $300). Then, add this to the goods' value and multiply by the VAT rate ($2300 20% = $460 VAT). Your total import cost here would be $2760.

3. Let's add some complexity. You have an item worth $3000 with a customs duty of 20%, a VAT rate of 20%, an anti-dumping tax of 5%, plus Excise Duty of $500. The customs duty is $600 ($3000 20%). The anti-dumping tax equals $150 ($3000 5%). The VAT would then be $750 ($3150 20%). The total import cost becomes $4600 when you add in the Excise Duty.

Although these calculations might seem intimidating, DocShipper is here to alleviate that stress. We handle every step of the customs clearance worldwide, ensuring you're never overcharged. Ready to cast off your import worries? Contact us today to receive a free quote within 24 hours.

Bill of Lading

Navigating customs between Thailand and Ireland? A key player in your process will be the Bill of Lading. Acting like a cargo passport, it marks your ownership transition. When your goods ride the high seas, this document is as vital as a captain to a ship. Fancy smoothing the process? Try an electronic 'telex' release. It's faster, cleaner, and casts off the shackles of traditional paper documents. And for those flying their goods, switch your gaze to the Air Waybill (AWB), the air cargo equivalent. Always remember, whether you're shipping Thai spices or Irish textiles, the Bill of Lading or AWB is your golden key for smooth sailing (or flying) through the customs process.

Packing List

The Packing List is your secret ally for a hiccup-free shipping journey from Thailand to Ireland. Picture yourself as a warehouse manager in Bangkok, packing a batch of artisan-made silverware for Dublin. Your Packing List has to detail the exact quantity, description, and weight of each item in the crates. It's crucial to be laser accurate - one small mistake can result in all kinds of hold-ups at customs, no matter if you're shipping by sea or air.

Let's face it, nobody wants their cargo stranded at Dublin Port or held back at Suvarnabhumi Airport. This document is like a passport for your goods, allowing them seamless passage through checkpoints, and a smoother delivery right to your customer's doorstep. Accuracy is key, so keep the Packing List as true to your cargo as possible to avoid any costly delays or fines.

Commercial Invoice

The Commercial Invoice is your point of truth when shipping goods from Thailand to Ireland. It contains specifics like product detail, value, the buyer, and seller, crucial for customs clearance. A misstep or mismatch here, say between your invoice and Bill of Lading, can delay your goods at the customs, leading to extra costs. So, ensure your documents align.

For instance, if your invoice states 'handcrafted ceramic vases', the same language should reflect on your other documents. Catering to your shipping needs, elbow grease in preparing your Commercial Invoice can save you time and headaches at the customs frontline. Don't overlook this essential document; it's your passport to smooth shipping!

Certificate of Origin

When shipping from Thailand to Ireland, your Certificate of Origin (CO) is paramount. This document proves where your goods were manufactured, and it can unlock numerous benefits like preferential customs duty rates. For instance, if you're shipping silk products made in Thailand, stating this in your CO may lead to lower duty rates under specific international trade agreements. It's crucial to ensure that every detail, especially about the country of manufacture, is accurate and backed by evidence. Misrepresentation can delay your shipment and result in penalties. So, remember, your CO isn't just a document; it's the key holder to smoother, more cost-effective shipping across borders.

Certificate of Conformity (CE standard)

As a business shipping goods from Thailand to Ireland, your products must adhere to the Certificate of Conformity (CE standard), a vital regulatory requirement in Europe. This isn't about quality assurance; instead, the CE mark indicates your goods comply with all mandatory European safety, health, and environmental protection standards.

For instance, a shipping load of electronic devices must meet specific electromagnetic interference and safety regulations. It's somewhat similar to the FCC standard in the US, but your goods need the CE mark for clearance when entering Ireland. To avoid hold-ups, ensure your manufacturer has conducted all necessary testing and certification procedures to validate your goods' compliance with the CE standard before shipping.

Remember: Having the CE mark not only smoothes your customs clearance process, but also boost customers' trust, as they know your products meet European safety standards.