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

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

Understanding and estimating the duties and taxes when importing from Thailand to Norway may initially seem daunting, but the process is quite straightforward once you know the key components involved. Firstly, you need to be aware that the customs duty calculation hinges on key factors such as the country of origin, the Harmonized System (HS) Code, the Customs Value, the Applicable Tariff Rate, and any additional taxes and fees that may apply to your specific products. To give you an idea, the first step in this process revolves around identifying the country of manufacturing where your goods were produced. Now, let's untangle this complex process further, allowing you to easily calculate your import costs.

Step 1 - Identify the Country of Origin

Recognizing the country of origin is one critical aspect of your shipping journey, and here's why. First, it plugs into determining the Harmonised System (HS) code, which directly impacts the duty rates. Secondly, trade agreements are defined according to the country of origin. Between Thailand and Norway, the EFTA - Thailand Free Trade Agreement significantly reduces customs duties for several goods.

Thirdly, various countries have specific import restrictions in place. For Thailand, knowing the country of origin supports avoiding legal complications. Fourth, this step paves the way to a smooth customs clearance process. Lastly, knowing the origin could potentially expose your business to duty reliefs or refunds.

Thailand has specific import restrictions for certain items like meat, plants, and other agricultural products. Make sure you're familiar with these regulations to avoid any surprises. To ensure a safe and efficient shipping process from Thailand to Norway, always acknowledge the origin of your goods. The slight time spent now might save you hefty costs later!

Step 2 - Find the HS Code of your product

The Harmonized System (HS) code is a standard classification system used by customs officials globally to identify a product and apply the correct duties and taxes. It is a six to ten-digit number assigned to specific commodities when they are being shipped across international borders.

Generally, the easiest way to find the HS code of your product is to ask your supplier. Owing to their familiarity with the regulations of what they're importing, they will often have this information readily available.

However, there may be instances where this isn't possible or feasible for you. In such a case, rest assured, as we're going to guide you through an easy step-by-step process to find it.

The initial step involves using an HS lookup tool. The Harmonized Tariff Schedule is a reliable tool that can be utilized effectively for this purpose. By simply entering the name of your product into the search bar, you'll have access to the information you need.

Upon executing your search, check the column labeled 'Heading/Subheading.' This is where you'll spot the HS code pertinent to your product.

Now a note of caution: it is of utmost importance that you choose the correct HS code. Inaccurate selection could potentially lead to issues in customs, add unwarranted delays to your shipment, and may even result in fines. Therefore, due diligence and accuracy is crucial during this step.

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

Step 3 - Calculate the Customs Value

If you're wondering how customs value in Norway is different from the actual price of goods, let's demystify it. Unlike the product value, the customs value includes not just the product cost but the CIF value. Here’s what it means: if you're importing a shipment of silk scarves worth $5000 from Thailand to Norway, the customs value isn't this $5000.

Instead, it's:

- the cost of the goods (i.e., $5000),
- plus the cost of international shipping (say, $1200),
- plus the insurance cost (for example, $200).

Therefore, the total customs value becomes $5,000 (goods) + $1,200 (shipping) + $200 (insurance) = $6,400. That's your key figure for calculating duties and taxes in Norway. Remember, understanding this can save your business from unforeseen expenses.

Step 4 - Figure out the applicable Import Tariff

An import tariff is a type of tax imposed by a government on goods arriving from overseas. It's part and parcel of international trade, forcing exporters to take into account these costs when estimating their pricing and logistics strategies.

Norway is part of the European Economic Area (EEA), but it is not part of the customs union. It sets its own tariffs on goods imported from outside the single market. To determine the specific tariff rate for your product, you'll need to navigate to the Norwegian Customs consultation tool and enter the Harmonized System (HS) code identified earlier.

Let's consider an example - imagine you're importing wooden furniture from Thailand with an HS code 9403.10. Norwegian Customs might indicate a tariff rate of 2.7%. If your Cost, Insurance, and Freight (CIF) amount to $10,000 USD, the import duty would be calculated as 2.7% of $10,000, equating to $270 USD.

Hence, ensure that you vigilantly track these charges while structuring your pricing and supply chain tactics to preclude unwelcome surprises and streamline your import processes. The right planning and preparatory work make the customs clearance process in Norway seamless and efficient.

Here's how you to navigate the Norwegian Customs website to find the needed information:

As you can see on the screenshot above, you should add your goods code (HS Code), and the search bar.

After that, you have to click on the "magnify glass" and you will land on a page with all the information that determine the duties and taxes, here's a screenshot to illustrate it:

Step 5 - Consider other Import Duties and Taxes

In your shipping journey from Thailand to Norway, one critical aspect to consider is the import duties - and it's not limited to the standard tariff rate! An additional layer could be a specific duty based on the product's nature and country of origin. For instance, your metal products might attract anti-dumping taxes, aimed at curbing unfair trade practices.

Another cost to keep an eye on is the excise duty, added on certain categories like alcohol or tobacco. Let's assume your shipment of whiskey gets levied with an excise duty of 20%. If the product value is $1,000, this duty adds an extra $200.

Moreover, brace yourself for Value Added Tax (VAT). In Norway, the standard VAT rate is 25%. Following our example, on a product value of $1,000, $250 would be the calculated VAT.

Remember, these are just instances and may not apply to your situation directly. The actual calculations may vary since customs duties are subject to change and depend largely on product classification.

To take control, keep abreast with the changes and plan your shipments accordingly. It will not only ease your shipping process but also make your business more predictable and competitive.

Step 6 - Calculate the Customs Duties

Navigating customs clearance, particularly in Norway, may be complex but understanding the formula to calculate duties will certainly help. The Customs Duties = Customs Value (Cost of goods + Freight + Insurance) Custom Duty Rate.

Let's explore some scenarios (all values in USD):

1. Consider an example of shipping furniture worth $3,000 with a freight + insurance cost of $500, and a duty rate of 5%. The customs duties will simply be 5% of $3500, which equals $175.

2. Now, if you are importing electronics worth $6,000 with freight & insurance of $1,500 and a duty rate of 10%, plus a VAT of 25%, you'll first calculate the Customs Duty ($7,5000.10 = $750). Then add this to the customs value to get the VAT basis ($7,500+$750=$8,250). The VAT will then be 25% of $8,250 which is $2,062.50. So, your total cost will be duty+$750 + VAT $2,062.50 = $2,812.50.

3. Lastly, for items like spirits (supposing a $5,000 value, $1,000 freight + insurance, 20% duty rate), plus 25% VAT, 35% anti-dumping tax, and 10% excise duty: It's calculated as follows: Duty ($6,0000.2=$1,200), VAT ($7,2000.25=$1,800), anti-dumping tax ($7,2000.35=$2,520), excise duty ($7,2000.10=$720). Total cost equals $6,240.

These calculations could be overwhelming. As an efficient alternative, DocShipper can manage your customs clearance worldwide, ensuring you pay no more than you should. Contact us for a free quote within 24 hours.

Bill of Lading

For businesses trading between Thailand and Norway, a Bill of Lading is an essential document, acting as a receipt as well as proof of contract and ownership of goods. It's the golden ticket that facilitates the smooth transition of goods across borders.

One way is to opt for a 'telex release', essentially an electronic transmission of a Bill of Lading. This can speed up the shipment process significantly – ideal for those time-sensitive deliveries! Plus, it's green too, as it eliminates the need for paper copies.

When using air cargo, the Air Waybill (AWB) plays a similar role. It's crucial to ensure every detail on the AWB is accurate to prevent delays.

Remember, proper preparation and understanding of these documents can avoid unnecessary hiccups and expenses in your Thailand-Norway trade journey. Shipping, after all, isn't just about moving boxes—it's about doing business smartly and efficiently.

Packing List

When shipping from Thailand to Norway, never overlook the importance of a correctly filled-out Packing List. This seemingly unassuming document carries immense weight in the shipping process, holding all crucial details about your cargo. It details the exact contents, quantities, and specifications of your products, important for both sea and air freight journeys.

Take this example: your shipment holds 500 ceramic mugs. An incomplete Packing List might only mention 'ceramics,' causing confusion during cargo loading and customs clearance. However, an accurately filled list detailing '500 ceramic mugs' quickens the process by providing clear insights.

Remember: accuracy on your Packing List safeguards against freight mishaps. Customs officers in both Thailand and Norway rely on it for an efficient clearance process, ultimately ensuring your shipment reaches the destination without unnecessary delays. So be meticulous when compiling your Packing List; it's your vital partner in shipping success.

Commercial Invoice

Your Commercial Invoice is the cornerstone of customs clearance from Thailand to Norway. Think of it as your shipment's passport, conveying key data like invoice number, product descriptions, unit value, total value, and the shipper-receiver details. It is crucial to keep this data harmonized with what's presented in your Shipping Bill and other documents.

Suppose you're shipping wooden furniture; your Invoice should accurately reflect the number of units, type of wood used, crafting details, and individual and total costs. An inconsistency can delay clearance, causing you additional stress and possible expense. To avoid such mishaps, always double-check your invoice details, harmonize them with other related documents, and you're all set to make your Thai-Norwegian shipping experience a smooth one.