Freight shipping between Thailand and France | Rates -Transit time – Duties and taxes

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

Every international shipment, from Thailand to France or anywhere else, involves a complex tapestry of costs. Among these are legislative duties and taxes, tied to multiple factors that you, the importer, need to keep track of. It’s like piecing together a multi-faceted puzzle.

Your shipment's country of origin, the Harmonized System (HS) code, customs value, tariff rate applicable, along with a host of other possible taxes and fees, all form the ingredients of your customs duties recipe. Each of these aspects play their part in determining the final amount that you will need to pay in duties and taxes.

Starting with the country of origin, it's the first crucial piece you need to place in this puzzle. To put simply, this refers to the country where your goods were manufactured or produced. You need this information to move forward in the duty estimation process and establish your shipment's 'identity' in the world of international commerce. Pro tip: understanding where your shipment 'comes from' isn't just helpful but an essential step in estimating the duty and tax costs.

Step 1 - Identify the Country of Origin

Taking a clear-eyed look at the Country of Origin, for your goods from Thailand to France, offers more than meets the eye. First up, it sets the stage for your Harmonized System (HS) code, that magic number decisive in tariff calculations.

Delving deeper, it shapes the trade agreement du jour. Does your shipment benefit from EFTA or the EU-Thailand Free Trade Agreement? Either can offer preferential duties and pull down customs walls. Knowledge about these two trade terms can slice your costs substantially.

Never overlook potential import stipulations or restrictions from France. Each product carries its quirks. The savvy business magnate keeps regulations at their fingertips, dodging unexpected breaches and troublesome hold-ups.

So, step one is not just a formality. Think of it as your compass, pointing your import journey in the right direction. It sets you up for success. Understand the nuances, use them wisely, and watch as your Thailand-to-France imports turn into smooth transitions rather than choppy seas.

Step 2 - Find the HS Code of your product

The Harmonized System (HS) code is a standardized numerical method of classifying traded products. It is used by customs authorities globally to identify products for the purpose of levying duties and taxes. Knowing the HS Code of your products is crucial when preparing documents for shipping internationally.

Your supplier is typically the easiest source when seeking the HS Code for your product. They are often familiar with the products they're exporting and the associated regulatory requirements. However, if you don't have that luxury, fear not! We provide you with an easy step-by-step guide to navigate through this process on your own.

The first step involves using an HS lookup tool. You can utilize the Harmonized Tariff Schedule for this purpose. Once you're on this page, simply input the name of your product in the search bar. Your next task is to sift through the results under the Heading/Subheading column, where you'll find the HS code for your product.

Exactness is of the essence when choosing an HS Code. Bear in mind that selecting an inaccurate HS Code could result in shipment delays and potentially incur fines, which can be a costly mistake for your business. Therefore, it's crucial to conduct a thorough search and verify the HS Code for accuracy.

Here's an infographic showing you how to read an HS code. It's a handy tool to refer back to while navigating the search for your product's HS code. Enjoy the process and happy shipping!

Step 3 - Calculate the Customs Value

Determining the correct customs value for your goods shipped from Thailand to France might feel a bit tricky, but it's more straightforward than you might think. The customs value isn't simply the price tag of your products. Instead, it's the CIF value: Cost, Insurance, and Freight. Take the cost price of your goods, add in the expense of international shipping, and then tack on the insurance cost.

Here's a quick example. Let's say you're shipping over electronics worth $20,000. Shipping costs come in at $2000, and your freight insurance is another $500. In this scenario, your Customs Value is $22,500. Keep in mind accurate documentation is vital during this process to avoid any unexpected fees or delays.

Step 4 - Figure out the applicable Import Tariff

An import tariff, or duty, is a tax that governments place on imported goods. In France, which is part of the European Union, tariffs are set by the EU and can be identified through the TARIC system.

To find the import tariff for your products, visit the TARIC System - European Customs and follow these steps:

1. Insert the HS code for your product, which was identified earlier, along with the country of origin (Thailand).
2. The system will then provide the duties and taxes applicable to your product.

Let's take a practical example. Assume that you're importing rubber boots (HS code 6401.10) from Thailand. By entering this information into the TARIC System, you might find a tariff rate of 4.7%. The tariff is calculated on the Cost, Insurance, and Freight (CIF) value of the goods. So, if the CIF value is $10,000, your import duty would be $470.

Calculating your tariff accurately is crucial as it directly impacts the final price of your goods, and misunderstanding can lead to unexpected costs. As such, familiarizing yourself with these steps can save you valuable time and resources.

Step 5 - Consider other Import Duties and Taxes

When you're exporting goods from Thailand to France, be aware that, in addition to the standard tariff rate, there could be other import duties and taxes. For instance, you might encounter the excise duty, imposed on specific goods like alcohol or tobacco. If your product is deemed to be sold under market value, anti-dumping taxes may apply. Most critical of them all is the Value Added Tax (VAT).

In France, the VAT rate can range from 5.5% to 20%, varying by product category and trading conditions. Let's say, for a shipment valued at $10,000 USD, with a VAT of 20%, you'd owe $2,000 USD in VAT alone.

Also noteworthy is the Generalized System of Preferences (GSP) that France applies, reducing duties on goods originating from certain countries, including Thailand. With this system, you might find some of your goods can be imported with less or no duty.

Remember, these are only examples and the actual rates may vary. Therefore, you should always check the latest rates and regulations for your specific goods and situation. Shape your strategy resiliently around the fluctuating world of import duties and VAT. In doing so, you'll avoid unnecessary surprises, smoothing your way into the French market.

Step 6 - Calculate the Customs Duties

Navigating the calculation of customs duties when importing goods from Thailand to France can be tricky. Start with identifying your customs value - the total cost of importing the product, including purchase price, transport, insurance, and handling charges.

For our first case, consider a shipment with a customs value of $10,000 and no VAT involved. If the customs duty is, for instance, 4.5%, your customs duty will be $450.

Scenario two introduces VAT, used in the EU countries like France, which is typically 20%. So, if you're importing goods worth $15,000 with customs duties at 3.5% and VAT at 20%, the calculations become (($15,000 3.5%) + $15,000) 20% = $930.

Lastly, in a scenario that also involves anti-dumping taxes and Excise Duty, say with customs value at $20,000, customs duties of 3%, VAT of 20%, with anti-dumping taxes at 10% and Excise Duty of 15%, the formula would be ((($20,000 3%) + $20,000 + ($20,000 10%) + ($20,000 15%)) 20% = $2,320.

Remember that the specifics of these calculations might change, making it challenging. As your professional logistics partner, DocShipper is here to simplify customs clearance globally, ensuring you don't pay more than necessary. For a free quote in 24 hours or less, kindly contact us.

Bill of Lading

Navigating the sea of logistics between Thailand and France? Handling the Bill of Lading accurately is crucial. This go-to document validates your shipment's transition of ownership. Imagine it as the baton in a relay, swiftly and accurately passed to avoid any delay. Opting for an electronic or telex release adds an extra layer of efficiency, rapidly transferring information securely and cutting out any paper-shuffling.

For those flying high with air cargo, AWB (Air Waybill) is your equivalent. Commit these to memory, and you're setting sail on smoother seas. Remember, in this race, knowledge of the paperwork sets the pace.

Packing List

When shipping from Thailand to France, your Packing List isn't just a slip of paper – it's your defender in the complex world of international logistics. Picture this: you're sending a consignment of silk garments by air freight and hand-carved furniture by sea.

For customs authorities in both countries, your packing list is a compass, guiding them about the contents, quantity, weight, and dimensions. Slip-ups aren't taken lightly: imagine a mistake in cataloging leads to delays in clearance, affecting your buyer in Paris who needed those silk scarves yesterday. So, create your packing list with military precision – it's as vital as the cargo itself, for sea or for air, preventing penalties and ensuring your elegant antiques or vibrant textiles move swiftly from the vibrant streets of Bangkok to the chic boutiques in France.

Commercial Invoice

When shipping goods between Thailand and France, your Commercial Invoice acts as the customs authority's lens. It's crucial that it includes clear, detailed descriptions of the goods, their HS code, the total value in both Thai Bahts and Euros, your company's full details, and the buying party's details.

Discrepancies in this document can lead to customs delays, so aligning it with your packing list and bill of lading is critical for a smooth shipment. For instance, if you're exporting wholesale silk apparel from Thailand, confirm the corresponding HS code (6204.43) is accurate.

Ensuring precision is critical not only for customs but also for determining the correct import duties. Remember, inconsistencies trip red flags. So, perfect those invoices before your goods hit the air, sea, or rail.

Certificate of Origin

Navigating the shipping waters between Thailand and France? Your Certificate of Origin can be a real game-changer. This document details the country where your goods were produced—essential for determining custom duties. Picture this: You're shipping Thai-manufactured furniture to France.

Your Certificate of Origin distinctly states your goods originated in Thailand, potentially qualifying you for preferential customs duty rates, under the EU-Thailand trade agreement. It's like a passport for your products, smoothing their passage from humid Bangkok warehouses to chic Parisian boutiques. Never underestimate its power, because in international shipping, this documentation carries weight. Leverage it to navigate customs, cutting costs and complexities en route.

Certificate of Conformity (CE standard)

When transporting goods from Thailand to France, a key document is the Certificate of Conformity (CE standard). It verifies that your product meets all safety, health, and environmental requirements - it's a virtual passport for entry into the European market, including France.

Consider it a badge of quality; however, it's not equivalent to a quality assurance certificate, which has a broader scope and concerns the process of production rather than the product itself. It stands parallel to regulations like the FCC in the US.

Not having a Certificate of Conformity (CE standard) can lead to challenges in customs, resulting in possible delays or returned shipments. Make sure to get your products certified for smoother, quicker entries into the French market.