Freight shipping from Thaïland to Belgium-Tariffs – Transit times – Duties and taxes

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

When importing goods from Thailand to Belgium, understanding the calculation of customs duties is a crucial step that might seem a bit complex, but is quintessential for a smooth transition of your goods. The estimate entails knowledge of a handful of key factors: the country where goods originated (manufactured or produced), the Harmonized System (HS) code of your goods, the Customs Value (based on Cost, Insurance, and Freight value and any other costs incurred), the applicable tariff rate, and any additional taxes and fees pertinent to your goods.

The first step in this process is to pinpoint the country of origin - this refers to where your goods have been manufactured or produced, not where they've been bought. This is an essential linchpin in the whole process as the country of origin can greatly affect the duty codes and rates applicable. So, before diving deep into the cost calculations, make sure to confirm if your goods were indeed made in Thailand.

Step 1 - Identify the Country of Origin

Knowing the origination point of your goods is crucial and here's why. First, it determines which trade agreements apply. For example, the EU-Thailand FTA can lower your import duties significantly. Second, it directly affects the tariff codes and subsequently, all calculations for duties and taxes. Third, rules about quotas and duty suspensions are associated with certain country origins. Fourth, the country of origin impacts the import restrictions that may apply. For example, certain agricultural products often face stricter regulations. Lastly, specific anti-dumping measures and customs duties rates depend on your goods' origin.

Want to tease out the specifics of the EU-Thailand FTA? This agreement can drastically reduce your import duties, as long as goods qualify as 'originating products.'

While Belgium's list of restricted imports isn't lengthy, certain goods such as weapons, endangered species, or certain chemicals -- might need extra permissions. Be sure to check each item's import restrictions.

Now, you are all set for the first step. A clear understanding of the country of origin helps ensure smooth sailing - or in this case, importing - all the way from Thailand to Belgium!

Step 2 - Find the HS Code of your product

The Harmonized System Code, often referred to as the HS Code, is a product-specific code as classified by the Harmonized Tariff Schedule (HTS). It streamlines the customs process since the code is used by customs authorities globally to determine the amount of duties and taxes to be paid for each shipment.

Normally, the most straightforward way to find the HS code of your product is to ask the supplier. They are guaranteed to know their product and the corresponding regulations inside out.

If you cannot get the information from your supplier, worry not! We have an easy, step-by-step process to help you locate it. Firstly, visit the Harmonized Tariff Schedule website. Simply input the name of your product into the search bar. The HS code for your product will then typically appear in the Heading/Subheading column.

Please note: Accuracy in choosing the HS code is paramount. Inaccurate HS codes can lead to delays in delivery and may also incur potential fines. So make sure you've got the right code!

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

Step 3 - Calculate the Customs Value

You may be wondering how the 'customs value' differs from the price of the goods you're importing. In reality, the customs value includes much more than just your product's price. In addition to the value of your goods, it also includes the costs of international shipping and insurance - this is known as the CIF (Cost, Insurance, and Freight) value.

For instance, if your goods cost $2000, with $300 labeled for shipping and $200 for insurance, your customs value won't be only $2000. Instead, it will be the CIF value: $2000 (goods) + $300 (shipping) + $200 (insurance) = $2,500. This is the true value you'll declare when your products arrive in Belgium for customs clearance. Understanding this could help you avoid unexpected expenses and effectively plan your shipping budget.

Step 4 - Figure out the applicable Import Tariff

An import tariff is a tax imposed on goods delivered from a foreign country. In the context of Belgium, part of the European Union, you can find the applicable import tariff by using the TARIC System - European Customs.

Simply input the HS code, which you identified in the previous steps, and select Thailand as the country of origin. This will display the duties and taxes applicable to your product.

As a practical illustration, let's consider a shipment of cotton bed linen, classified under HS code 63023100. By entering this code plus the country of origin into the TARIC Consultation Tool, you might find an import tariff of 12%.

Assume your CIF (Cost, Insurance, and Freight) is $1000. To find out how much you'll be charged for import duties, multiply this amount by the tariff rate: $1000 x 12% = $120. Therefore, you'll need to factor in these import duties as part of your total shipping costs.

Mastering this process enables you to plan your international shipments more accurately, reducing unexpected costs and potential delays at the customs clearance stage in Belgium. It's all about making your international freight process as smooth and cost-efficient as possible.

Step 5 - Consider other Import Duties and Taxes

In addition to the standard tariff, your shipment might be subject to other import duties, where rates depend on the country of origin and product type. Let's delve into specifics to help you figure out estimated costs.

Take excise duty, frequently applied to products like alcohol or fuel. Suppose your shipment contains wine, a typical excise rate might be around $1 per liter. In comparison, anti-dumping duties can be imposed if products are sold way below their normal value, typically to protect local industries.

Now, a key duty to remember is VAT, commonly known as sales tax. Unlike excise and anti-dumping duties which only some products face, VAT applies to all imported goods. In Belgium, the standard VAT rate is 21%. Calculating is straightforward: if your shipment is valued at $1000, you'll typically pay $210 VAT.

Remember, these scenarios are merely examples and actual rates may differ. Consult with a reliable freight forwarder or a customs broker to determine accurate costs. This way, you'll mitigate surprises upon freight arrival and ensure smooth customs clearance.

Step 6 - Calculate the Customs Duties

Calculating customs duties in Belgium for goods imported from Thailand involves several variables: customs value (C), VAT (V), and potential anti-dumping taxes (ADT) and Excise Duty (ED).

Let's say you're importing wooden furniture worth $15,000 (C). With a 2.7% duty rate, the customs duty would be $405.

If you're importing electronic devices valued at $20,000 (C) with a 3.5% duty rate, your customs duty is $700. Now, considering Belgium's 21% VAT, you'll pay: $20,700 x 21% = $4347.

For more complex cases such as alcohol and tobacco, let's consider a $30,000 shipment of wine. With a customs duty of 4.5% and an ADT of 10%, your total duty plus ADT will be: $30,000 x 14.5% = $4350. Add in a $2000 ED, and then apply the 21% VAT to get: ($30,000 + $4350 + $2000) x 21% = $8673.

Note that these are simplified examples, not taking into account other possible fees (i.e., insurance, freight). Need a precise estimate? Don't worry, we've got you covered. Let DocShipper handle these intricate calculations for you. Our customs clearance services are available worldwide, ensuring you're never overcharged. For a free quote in less than 24 hours, don't hesitate to reach out.

Bill of Lading

The Bill of Lading is your lifeline in shipping goods between Thailand and Belgium. Think of it as a detailed receipt: It validates the transition of ownership, outlines what you're shipping, where, and by who. It's not just the paper trail—it's the key you hand over to Belgian customs. Expedite the process with an electronic or telex release. You'll bypass the wait for physical documents, boosting your speed.

And if you're feeling the call of the skies, the Air Waybill (AWB) exists for air cargo. Like the Bill of Lading, it helps keep your goods on track and legitimate in the eyes of customs. Remember, smart documentation helps your cargo transition from Thai docks or runways smoothly into Belgian markets. Handling these well is your ticket to seamless, stress-free shipping.

Packing List

Navigating freight logistics between Thailand and Belgium? The Packing List is your best ally. It details every item in your shipment, from product descriptions, quantities, to dimensions. Think of it like an all-access backstage pass for customs authorities, allowing them to verify your shipment without opening every box. For you, as a shipper, it's like telling your unique shipment story, and precision is pivotal.

Imagine sending a container of Thai silk textiles to Brussels. An accurately filled Packing List ensures your products clear customs smoothly both on departure and arrival. But a hasty 'dresses & scarves' description? It might just anchor your fine silks hopelessly in customs. Remember, whether you're shipping sea or air freight, an accurate Packing List is non-negotiable.

Commercial Invoice

Navigating the sea of international trade between Thailand and Belgium? Your Commercial Invoice is pivotal. It's the customs official's first look into what you're shipping, dictating the duties and taxes for your goods. Make sure you clearly state your product's full description, Harmonized System (HS) codes, and accurately valued costs.

This document should fall in line with your other shipping documents, like the Bill of Lading or Airway Bill. If you're importing wooden furniture to Belgium, for example, any discrepancy in the product description or value between these documents could raise red flags. So, keep your paperwork consistent to ensure a smooth customs clearance experience. After all, the devil is in the details, and even small misalignments can lead to delays. Happy shipping!

Certificate of Origin

Understanding the significance of the Certificate of Origin (CO) can give you a real competitive edge when shipping your goods from Thailand to Belgium. Primarily, the CO can entitle you to preferential customs duty rates, lightening your financial load. This certificate essentially vouches for your product's country of manufacture.

For instance, certain Thai handicrafts exported to Belgium might be blessed with a lower duty rate, provided these are attested by a CO. It's a powerful symbol that says 'this product is truly Thai,' unlocking benefits while ensuring compliance. Never overlook the importance of the CO—it could be your passport to easier, more cost-effective shipping.

Certificate of Conformity (CE standard)

Making sure your goods are properly certified is vital when shipping between Thailand and Belgium. One key document is the Certificate of Conformity, signaling adherence to CE standards. Far more than just quality assurance, it shows that your product aligns with European Union safety, health, and environmental protection benchmarks. Compared to US standards, the CE mark has a wider scope, ensuring not only product quality but also consumer safety.

For example, a Thai manufacturer exporting children's toys to Belgium should ensure these toys meet the CE standards, including elements like non-toxic paints and materials, to avoid customs complications. Act on this: Before shipping, consult the EU's official website or a compliance expert to verify if your products fall under the CE certification and then secure the Certificate of Conformity.