Freight shipping between Thailand and Singapore: Rates -Transit time – Duties & taxes

What is the most suitable method of transport between Thailand and Singapore?

There are 4 modes of transport, air freight, sea freight, road freight, and rail freight. However, in the situation of Singapore to Thailand, the railway modality does not exist, at least not yet, and road freight  between Thailand and Singapore can be a practical substitute for shipping products, especially for particular cargoes and situations. Road transportation can provide benefits in some circumstances, even if air freight and sea cargo are the main routes of transit between these two nations. Air freight, sea freight, and land transport are the best options for moving goods between Thailand and Singapore. Although there is now no rail freight service between Singapore and Thailand, there have been proposals and discussions for future rail connections in the area. The goal of projects like the Singapore-Kunming Rail Link project is to provide rail links between Singapore, Thailand, and other Southeast Asian nations. Land transport is utilized to move commodities to neighboring regions whereas sea freight is more economical for larger shipments and bulk items. Due to logistics needs, product characteristics, and delivery schedules, businesses frequently combine these strategies.

Sea freight from Thailand to Singapore

Should I ship by groupage or full container between Singapore and Thailand?

There are three main categories of standard container sizes:

• The 40-foot HQ (High Cube), with a capacity of 76 cubic meters.
• The 40-foot container, with a capacity of 67 cubic meters.
• The 20-foot container, with a capacity of 33 cubic meters.

Each of these containers can be shipped by two different transportation methods.

Special transports by sea between Thailand and Singapore

Reefer container

A reefer container is made particularly for the transportation of perishable goods or chemicals that need to be transported at specified temperatures. It has a cooling system that enables the maintenance of particular temperature ranges during the course of the shipment. This guarantees that delicate items, such farm fresh food, prescription medications, or certain chemicals, remain in top condition during shipping.

Roro

Vehicles such as automobiles, trucks, vans, semi-trailers, and even rail carriages may all be transported on RORO (Roll On/Roll Off) boats. These ships include platforms or ramps that enable vehicles to be driven or rolled straight onto and off of the ship. As they make loading and unloading easier and reduce handling dangers, RORO boats are regarded as one of the safest and most effective methods of transport for large or unusual goods.

Bulk

Vehicles such as automobiles, trucks, vans, semi-trailers, and even rail carriages may all be transported on RORO (Roll On/Roll Off) boats. These ships include platforms or ramps that enable vehicles to be driven or rolled straight onto and off of the ship. As they make loading and unloading easier and reduce handling dangers, RORO boats are regarded as one of the safest and most effective methods of transport for large or unusual goods.

OOG

OOG cargo is cargo that exceeds the dimensions of a standard container. Two types of containers exist for these goods:

• Open Top Container: they have no roof, which allows loading cargo that exceeds the height of the containers.
• Flat Rack Container: these are flat containers without side walls or roofs, used for goods that cannot be loaded in standard containers.

How much does the sea freight cost between Thailand and Singapore?

The cost of sea freight between Singapore and Thailand will depend on several factors such as the type of cargo being shipped, the volume and weight of the cargo, the distance between the ports of origin and destination, the shipping method, and the current market conditions.

In general, the average cost of shipping a 20-foot container (TEU) from Singapor to Thailand is approximately US$900 to US$1200, depending on the shipping company, the port of origin and destination, and the time of year.

It is possible to estimate the cost if you know the exact weight and volume of your goods. To do this, you must follow these 3 steps:

• Determine the PU (Paying Unit): for this, you need to compare the mass and volume of your cargo based on the theory of sea freight, which states that one ton = 1 m³. The higher value between volume and mass will be the UP. For example, for a volume of 20 m³ and a mass of 25 tons, the UP will be 25 tons.
• Calculate the basic freight: to do this, multiply the cost of the UP by its number.
• Calculate the net freight: with the following formula, Base freight + BAF + CSP - Rebate. The result will be the cost of your sea freight.

Tariff surcharges

Tariff surcharges may apply on your transport between Singapore and Thailand, here are the main ones:

• Bunker Adjustment Factor (BAF): This surcharge is applied according to fluctuations in the price of fuel and may vary regularly depending on market conditions.
• Security Surcharge (SCS): This surcharge is applied to cover costs related to port and vessel security.
• Overcapacity surcharge (OWS): This surcharge is applied when demand for shipping is lower than supply, resulting in excess vessel capacity.
• Congestion surcharge (CGS): This surcharge is applied in ports where congestion is high, resulting in extended waiting times for ships.

Air freight from Thailand to Singapore

Transit time between Singapore airport and Thailand airports

Here is a summary table of the average transit times, in hours, between the largest Singapore and Thai airports.

*Veuillez noter que ces temps de transit sont indicatifs et peuvent varier en fonction de divers facteurs.

What are the advantages of air freight?

• Speed of transport
• Rarely late
• Good geographical coverage

What are the disadvantages of air freight?

• High price
• Not possible to transport really heavy goods
• The security at the airport is much higher which can make you lose time during the control

How much does it cost to transport cargo by air from Thailand to Singapore?

 Door-to-door delivery between Thailand and Singapore

If you don't have time to devote to transportation, door-to-door delivery is for you. This method is simple, your goods will be picked up directly at your home, and then delivered to the desired destination. You will not need to take care of anything and your goods will be safe with professionals.

What are the advantages of door-to-door services?

• Quick delivery: As everything is completed in a 24-hour period, you can send it if your delivery time is during the day.
• Door-to-door delivery is always available, so your package will come even late at night or on a holiday.
• Convenience: Receiving the package at your location rather than having it delivered to you is better for you.
• Your cargo can be qualified for courier delivery if it is a manageable size.

What are the disadvantages of door-to-door services?

• High cost: The cost increases with the urgency of the cargo, as well as with the package's size and weight, which also affect the cost.
• Limited flexibility :There may not be much scheduling or delivery flexibility with door-to-door services.
• Potential for damage or loss : As goods are handled and transported through multiple stages, there is an increased risk of damage or loss during the door-to-door service.

Customs clearance in Singapore for goods imported from Thailand

Customs clearance in any country is an important and mandatory step that must be done when importing and exporting.

When you import goods in Singapore, the customs clearance will consist in paying the customs duties and the VAT. It is also necessary to be attentive to the regulations and standards of the country where you are shipping to avoid having your goods blocked at customs.

Here are the prohibited and regulated products in Singapore:

• Prohibited products: drugs, counterfeit goods, Chewing gum, plants, Cigarettes with a reduced ignition propensity (RIP), Obscene materials...
• Regulated products: Alcohol, tobacco products,food (fruits, vegetables, meat, poison, milk), Electronics and electronical equipment, medicines, products…

Customs valuation

The World Trade Organization's (WTO) Agreement on Customs Valuation serves as the foundation for the valuation procedures that the customs agencies of Singapore and Thailand use. This agreement offers a defined methodology for calculating the customs value of goods.

The transaction value—the actual amount paid or payable for the items being imported or exported—is often the basis for the customs value. The cost of the products, the cost of transportation, the cost of insurance, and any other expenditures spent before the commodities cross the customs border are all included in the transaction value.

It is crucial to submit supporting evidence, such as business invoices, contracts, shipping papers, and any other pertinent material, that proves the real cost of the items and related costs in order to appropriately estimate the customs value.

The customs officials in Singapore and Thailand are in charge of examining the precision of the claimed customs value. To make sure that the rules on customs value are being followed, they could perform audits or ask for further details.

What are the customs duties and taxes in Singapore?

When bringing products into Singapore, customs fees and taxes must be paid. Customs taxes and the Goods and Services Tax (GST) are the two primary forms of levies :

• Customs Duties: Depending on the product's characteristics, customs duties are assessed on a selection of imported items. The duty rates may be ad valorem (based on the value of the products) or specific (depending on the amount or weight of the items). An extensive list of the customs tax rates for various merchandise categories may be found on the Singapore Customs website.
• The majority of products and services in Singapore are subject to the products and Services Tax (GST), which is a consumption tax. GST is computed for imported items using the CIF (Cost, Insurance, and Freight) value, which takes into account the price of the item(s), insurance fees, and shipping expenses. Singapore now has a 7% standard GST rate.

How to calculate customs duties and taxes

Calculating customs duties and taxes on imports into Singapore can be a complex process that depends on several factors, such as the type of product, its value, and its country of origin. Here are the general steps to follow:

1. Determine the product's tariff classification: The first step in calculating customs duties is to determine the product's tariff classification. This is done by consulting the Singapore Custom's, which lists the various product categories and their corresponding duty rates. You'll need to know the Harmonized System (HS) code for your product to determine its tariff classification.
2. Determine the product's value: The next step is to determine the product's value, which is usually the invoice value of the goods plus any additional costs, such as shipping and insurance.
3. Calculate the customs duty: Once you have determined the product's tariff classification and value, you can calculate the customs duty. The duty rate will depend on the product's tariff classification, its value, and the country of origin. You can use the EU's TARIC database to look up the duty rate for your product.
4. Calculate the VAT: In addition to customs duties, you will also need to calculate the VAT. The VAT rate in France is currently 20%, but there may be reduced rates for certain products, such as food and books.
5. Calculate any other taxes or fees: Depending on the product, there may be other taxes or fees to consider, such as excise duties or environmental taxes.

It's important to note that the customs clearance process and the calculation of duties and taxes can be complex. If you're unsure about how to calculate the duties and taxes for your specific import, it's always best to consult with a customs broker or freight forwarder like Siam Shipping. We can help you navigate the process and ensure that you're meeting all the necessary requirements.

How to find the HS code?

A system of classification for products used in international trade is the HS code (Harmonized System). It organizes goods into categories based on their nature and intended use, making the collection of statistical data and the customs clearance process easier. The HS system contains more than 5,000 different products, each of which is categorized using a distinct eight-digit number.

You can consult these websites to know the HS code of the Thailand products and the Singapore products.

Calculating customs duties with the HS Code

Now that you have the HS code of your products, you can find the associated tariffs on the Website of Singapore or Thailand customs.

There is a standard procedure for calculating customs taxes in Asia using the HS Code (Harmonized System Code). The general procedures for calculating customs duties using the HS Code are as follows:

Choose the appropriate HS Code: The HS Code is a method for classifying products based on their type, composition, and intended application. It is an internationally accepted standard. Consult the harmonized tariff schedule of the nation you are importing from or exporting to to get the precise HS Code that applies to your goods.

Obtain the tariff schedule for customs: Access the country's customs tariff schedule for the import or export of the items. For each HS Code, this schedule includes comprehensive information on the appropriate customs charges and taxes.It could provide details on special discounts, exclusions, or any additional fees that might be necessary.

How to calculate the customs value Determine the customs value of your items based on the agreed transaction value, accounting for the cost of the items, shipping fees, insurance, and any other expenses that may be necessary. Customs duties and taxes are computed based on the customs value.

Once you have the HS Code and the customs value, find the matching customs tax rate from the tariff schedule and apply it. To get the amount of customs duty that must be paid, multiply the customs value by the duty rate.

Think about other taxes and fees: In addition to customs fees, your items can be subject to other taxes and fees including value-added tax (VAT), excise costs, or particular import fees. To find any additional fees and determine how much they will be, check the tariff schedule or speak with the customs officials.

Respect for preferential trade agreements: You may be entitled to lower or no customs charges if your goods are qualified for preferential trade agreements or free trade agreements. To claim preferential treatment, make sure you comply with the standards and provide the required paperwork, such as a Certificate of Origin.

It's vital to remember that customs duty amounts and processes might differ between Asian nations. For accurate and current information on customs duties, tariff schedules, and any unique restrictions relevant to your particular commercial transactions, it is advised to visit the customs authorities or use their web resources.

Does Siam Shipping charge customs duties?

No, no commission is taken from Siam Shipping. As proof, we will send you all the official documents provided by Singapore customs. We will only collect the customs clearance fees, as we declare your goods to the customs for you.

The fees associated with customs duties and taxes will be collected by the Singapore government.

Customs procedures and contact

Singapore Customs

Official name: Singapore Customs

Official website: Singapore Customs website

Thai Customs

Official name: Customs Department of Thailand

Official website: Thai Customs Website

Required documents

Original invoice

The original invoice is an essential record for the clearance of goods in Thailand as well as Singapore. It gives crucial information on the products that are being imported or exported, including their description, quantity, price, and terms of the deal.

Bill of lading

The bill of lading contains the important details about the shipping procedure and acts as proof that the exporter delivered the goods. It contains information on the cargo, such as the origin and destination, the sender and recipient, the kind and number of products being carried, as well as the consignor and consignee.

The packing list

The packing list is a comprehensive document that itemizes all the goods being shipped by the exporter. It includes detailed information about the contents of each package, such as the quantity, description, and weight or dimensions. The packing list is important throughout the shipment process and must be available at each stage of the product delivery

Certificate of Origin

The country of origin of the items is verified by the Certificate of Origin. It is necessary for customs reasons as it influences the assessment of import tariffs and eligibility for preferential trade agreements, and it gives proof of where the items were made or produced.

CE conformity

The CE conformity certificate is a document that verifies that a product meets the applicable European Union (EU) standards for environmental, safety, and health requirements. While not specifically required for customs clearance in Singapore and Thailand, it may be necessary if the goods are destined for the EU market or if the importing country has adopted similar conformity requirements.

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