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

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

Navigating the maze of import taxes and duties can seem daunting, but it's simpler than you might think. The customs duties you'll owe when importing from Thailand to the Netherlands are determined by several key factors: the origin country of the goods, the HS (Harmonized System) Code related to the specific product, the customs value, the applicable tariff rate, and any additional taxes and fees that may come into play. Your first move in this process is to pinpoint the country where your goods were manufactured or produced. It's your compass in mapping the route of your shipping journey and lays the foundation for the rest of your calculations.

Step 1 - Identify the Country of Origin

Recognizing the real origin of your goods is more than just ticking a box; it's a strategic move. Here's why.

1. A concrete point of reference - Understanding where your goods originate can help you determine the exact regulations applicable to them.

2. Trade deals matter - Thailand and the Netherlands are part of specific trade agreements that can significantly impact the amount of duty you pay.

3. Essential for accurate HS coding - Without knowing the country of origin, you might end up with incorrect HS codes, leading to unnecessary complications.

4. Identifying import restrictions - Different countries impose specific restrictions on certain goods. Knowing the country of origin helps you navigate these restrictions seamlessly.

5. Lessens custom surprises - With accurate identification of the country of origin, you can calculate your customs duties and taxes better, avoiding unexpected expenses.

Now, let’s delve into the Thai-Netherlands trade deals. Given their longstanding bilateral relationship, several agreements can result in reduced tariffs and, subsequently, lower costs for you. Avoid unpleasant surprises and review the specific import restrictions of both countries such as certain food items from Thailand having strict quality inspections in the Netherlands.

Remember, each step can shape your importing experience. Take your time and make informed decisions. Comprehending your journey from Thailand to the Netherlands can create a smoother shipping experience.

Step 2 - Find the HS Code of your product

Understanding the Harmonized System Code is fundamental for international shipping. This is a universal economic language and code for goods, and it's how every product is classified in international trade. It helps in determining how much and what type of duties will be applied to a product when it's imported.

If you're unsure about the HS code of your product, your safest bet is to ask your supplier. They are typically well-versed with the goods they're exporting and its associated regulations.

If for any reason this isn't possible, don't worry! We've got a straightforward process for you to find out. Visit the Harmonized Tariff Schedule and key in the name of your product into the search bar provided. Your HS code can then be identified in the Heading/Subheading column of the search results.

It's important to note that pinpoint accuracy when choosing your HS code is essential. Wrong codes could lead to unwanted hold ups with customs and potentially hefty fines. Always double-check for accuracy.

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

Step 3 - Calculate the Customs Value

I know you might be scratching your head about customs value. Well, let me break it down for you. The customs value isn't the price tag you see on your goods—it's actually the CIF value. Sounds complex? Stick with me here. The CIF value is essentially the price of your goods plus international shipping costs and the insurance price—for instance, if your goods cost $1000, the shipping is $200, and insurance is $100, the CIF value (aka your customs value) is $1300. Crazy, right? It's crucial to calculate it correctly to avoid surprises during the customs clearance process in the Netherlands. Think of it like prepping for a marathon—better to train hard now than to trip up on race day!

Step 4 - Figure out the applicable Import Tariff

An import tariff is a tax placed by governments on imported goods, which typically depends on the type of goods (HS Code) and the country of origin. For goods imported from Thailand to the Netherlands – an EU member state – the import tariff can be identified using the TARIC System - European Customs.

Here's a step-by-step process:

1. Navigate to the TARIC Consultation Tool.
2. Enter the HS code of your product and select Thailand as the country of origin.

Then, you'll get an overview of the duties and taxes applied to your specific product.

For example, let's assume you're importing a type of footwear classified under HS Code 6403 from Thailand. The TARIC system tells you that the tariff rate is 17%. If your insurance and freight costs (CIF) total $10,000, you calculate your import duties as follows:

Tariff Rate (%) x CIF Value = Import Duty
17% x $10,000 = $1,700

Thus, you'll have to pay $1,700 as the import duty. This real-life scenario gives you a clear picture of how to calculate tariffs when importing from Thailand into the Netherlands. It is crucial to get these details right to avoid unexpected costs and ensure a smooth customs clearance process.

Here's a screenshot to guide you:

Insert your HS Code in the "Goods Code" category, and add the country of destination. After that, click on "Retrieve Measures" and it should lead you to a page where you can examine the duties and taxes. Here's what it looks like:

Step 5 - Consider other Import Duties and Taxes

In international shipping, while you may be familiar with standard tariff rates, it's essential to factor in additionally applicable duties and taxes. These are often dependent on your product's nature and your country of origin. For instance, importing a wine shipment from Thailand to the Netherlands may attract excise duty. This is an indirect tax levied on certain goods like alcohol and tobacco.

Sometimes, you may encounter anti-dumping taxes. These are introduced if your goods are sold in the EU at prices lower than their normal value, which can harm the EU's production of similar goods. For instance, say you're manufacturing and importing steel into the Netherlands at a price significantly lower than its normal value in that market, a variable anti-dumping duty may apply.

But most consequential to your shipping cost is the Value Added Tax (VAT). This is a consumption tax added to a product's price at each stage of its supply chain, paid by the end consumer. Usually, in the Netherlands, the standard VAT rate is 21%, but lower rates can apply to certain goods. For example, art or collector’s items may be taxed at 9%. To calculate this, use a simple formula: (Customs Value + Import Duty) VAT rate.

Remember, these are just examples and the exact rates may vary, so it's crucial to conduct thorough research and seek expert advice. Overlooking these additional costs can dramatically impact your shipping budget and timeline. It's these seemingly minor details that often cause the most inconvenience in international shipping. So, don't let them take you by surprise!

Step 6 - Calculate the Customs Duties

Understanding the calculation of customs duties is valuable when importing goods from Thailand to the Netherlands. The formula is straightforward:

Customs Duties = Customs Value x Duty Rate

Customs Value, determined by the cost of the good, freight, and insurance charges, is then multiplied by the duty rate set for your specific product.

Example 1: Let's say you're importing a consignment of ceramic vases with a customs value of $5000 and a duty rate of 5%. Your customs duties will be $250 ($5000 x 5%).

Some products are also subject to Value Added Tax (VAT):

Total Taxes = (Customs Value + Customs Duties) x VAT

Example 2: Applying the same vases to a 21% VAT, given a customs value + duties of $5250, your total tax will be $1102.5.

Anti-Dumping Duties or Excise Duties apply to certain goods:

Total Duties = (Customs Value + Customs Duties + VAT) x ADD/ED

Example 3: If ceramic vases have a 10% Anti-Dumping Duty, your total duties are $633.75.

All these calculations might seem complex, but we've got you covered! At DocShipper, we ensure smooth customs clearance all around the globe. Our team monitors every step to prevent overcharges and provide an accurate estimate for your costs. Request your free no-obligation quote within 24 hours, and let us do the heavy lifting!

Bill of Lading

Navigating logistics between Thailand and Netherlands? The Bill of Lading (B/L) is your lifeline - an essential document that signifies a change of ownership. Think of it as a receipt, contract, and title of goods all rolled into one. It's critical for sea freight, while the Air Waybill (AWB) serves a similar function for air cargo.

Here's something handy for you - an electronic or 'telex' release. By eliminating the need to swap physical documents, it streamlines the entire process, saving you time and reducing the risk of lost or damaged paperwork. Trust us, it makes a world of difference in speeding up your customs clearance and delivery. It's smart moves like these that separate successful international trade from the pack.

Packing List

When shipping goods from Thailand to the Netherlands, it's crucial to have an accurate Packing List. Think of this list as your freight’s ID, detailing what, how many, and how your items are packed. Say you're shipping 100 handmade Thai silk scarves. Your Packing List should include each scarf, its weight, and its box. This isn't just a formality - whether by sea or air, your shipment may encounter inspections or verifications. An accurate Packing List ensures a smoother journey, helping to prevent customs troubles and delays that could interrupt your silk scarves' journey. Remember, your shipment's smooth voyage hinges on this document. So, take the time to get it right!

Commercial Invoice

Getting your Commercial Invoice right is a make-or-break in the customs clearance from Thailand to Netherlands. This document must detail the specifics of your shipment: product descriptions, shipment value, and H.S code, amongst others. Remember, an accurate invoice speeds up clearance and prevents costly delays.

For example, if you're shipping handmade Thai art, specify the materials used, its unique features, and its exact value. Your Commercial Invoice must align with all other shipping documents, ensuring continuity. Keep a keen eye out for typos or discrepancies - even the smallest mistake could spell trouble. By following these simple tips, you'll make your shipping procedure from Thailand to Netherlands smoother and faster. Navigate the customs like a pro!

Certificate of Origin

Navigating international trade between Thailand and the Netherlands? Here's a key player in your documentation lineup: the Certificate of Origin. Authenticating the ‘birthplace’ of your goods, this certificate can make or break your customs experience. Why so? Well, certain trade agreements between Thailand and the Netherlands provide preferential duty rates, sweetening your customs duties and giving your bottom line a friendly nudge.

Let's paint a clearer picture. Imagine you're transporting a batch of silk fabrics, manufactured right in the heartland of Thailand. With your Certificate of Origin in hand, proving Thai origin, your fabrics might qualify for reduced custom duties under a bilateral trade agreement. Now, your well-documented Thai silk sails through Dutch customs, saving you a tidy sum.

But remember, no cutting corners — always clarify the country of manufacture accurately. It's more than just paperwork, it’s your ticket to smoother, smarter international trade.

Certificate of Conformity (CE standard)

Shipping goods from Thailand to the Netherlands? A key document is the Certificate of Conformity to CE standard. This is much more than a quality assurance mark; it's your green flag to the European market. Unlike the QA, which ensures product quality, the CE mark signifies compliance with the European safety, health, environmental, and protection legislations.

Consequently, CE marking is a mandatory requirement for selling products in the European Union, thus Netherlands. Think of it as similar to the U.S.'s FCC Declaration of Conformity. Your actionable insight? Ensure your product complies with CE standards before shipping to save time, avoid customs hitches, and maintain your firm's reputation. Note though the UK uses UKCA marking instead post-Brexit. Look here for more: https://www.gov.uk/guidance/using-the-ukca-marking.