WHY YOU SHOULD LET SIAM SHIPPING HANDLE YOUR SHIPMENT FROM CHINA ?
Siam shipping is an expert for importing goods from China to Thailand, mainly by sea freight. We do ship weekly consolidation, full container. All kind of products, general cargo, dangerous and perishable.
Import Duties from China to Thailand
Import duties have been heavily reduced for a wide range of products and services, thanks to free trade agreements between Thailand and China.
The reduction of duties applies to different kinds of goods:
- Pharmaceutical products
- Dairy products
- Commercial trucks
- Aluminum structures
- Many other products
Trade between both countries is thus facilitated and shall allow manufacturers in Thailand to import cheap raw materials to export afterwards at a competitive price.
How Can you get tax exemption for goods imported from China ?
Your supplier must provide us with an E-form, in order to be checked and validated by our import service.
Beware! If the E-form contains errors, you will end up paying taxes. This is why we will check for you before the scheduled departure.
Please note that E-Form exempts duties and taxes, but Thai VAT is still mandatory (7%).
Definition of CO
A Certificate of Origin (CO) is a document proving that the export goods have been produced in a particular country, ready to be shipped to another country. It has to be provided by a notary public, government. The exporter of the goods can also issue it. It is usually divided into GSP certificate of origin (Form A), and various regional preferential certificates of origin, and non-preferential certificates of origin.
ASEAN-China Free Trade Certificate of Origin
The China – ASEAN Free Trade Certificate of Origin (FORM E) is now valid for exportations to the main following countries: Indonesia, Thailand, Malaysia, Vietnam, the Philippines, Singapore, Brunei, Cambodia, Myanmar, Laos. It has to comply with the relevant provisions of the product, as issued by the China – ASEAN free Trade Area of preferential origin confirmation letter (FORM E). The 10 countries mentioned before can benefit from preferential tariffs (up to a 5% lower tax rate).
The “Trade in Goods Agreement” defines the sample format of certificates of origin that has to be respected. The “trade in goods agreement” Protocol II also requires a description of the contents that has to be mentioned on the back page.
Reduced import duties thanks to FTAs between China and Thailand come with a possible future development of infrastructures, such as railways. This should generate a significant reduction of logistics costs, enhancing business and touristic flows in Thailand. Thailand is trading 99% of the goods to/from another ASEAN member, at a very competitive price. This kind of business relationships between countries has been a real driver for the development of the ASEAN bloc. We can be sure that such an agreement between China and Thailand would be a key asset for both countries.
If you want further information about the region, check our dedicated article: ASEAN
Import / Export Relations between China and Thailand
Important flows guided by a free trade agreement
Import / Export flows between China and Thailand are growing steadily from year to year. These two countries have good relations; culturally speaking, it is estimated that between one-third and one-half of Thai people would have Chinese origins. The ties between the two countries have tightened even more since the 2014 coup, with Thailand more or less diverting from the United States. China is the first economic partner of the ASEAN (Association of Southeast Asian Nations).
A Framework Agreement between the People’s Republic of China (PRC) and the ASEAN Kingdom entered into force in 2003 to promote comprehensive economic cooperation. Indeed, it was decided that a free trade area would be established within 10 years.
The main points of this agreement are:
– The elimination of tariff and non-tariff barriers on international trade in products,
– The liberalization of international trade in services
– Foreign direct investment
– Simplification of customs procedures and
– Mutual recognition agreements.
The ASEAN-China Free Trade Area is the third largest free trade area in the world, and here are some important points:
1. 1.9 billion people (30% of the world’s population)
2. GDP: $ 2 billion
3. International trade: $ 1.1 billion
4. International trade as a whole will increase by 38.9%
5. Imports and exports are expected to increase by 50%
6. Five ASEAN countries are China’s largest trading partners
7. China is the third largest source of imports from ASEAN (Association of Southeast Asian Nations)
B- An agreement favoring the activity of Chinese seaports
China-ASEAN free trade agreement signed in January 2007 entered into force on 1 July 2007. China’s foreign direct investment (FDI) ASEAN. In addition, the ASEAN-China Free Trade Agreement (ASEAN-China) free trade agreement will be applied by the LAC countries of the Association of Southeast Asian Nations (Cambodia, Laos, Myanmar and Vietnam) on 1 January 2015.
China relies on several major ports to keep this maritime activity in constant evolution. Indeed, China has more than 2,000 ports, 130 of which are open to foreign ships. China has 16 major seaports with a capacity of more than 50 million tons per year. Among these, the port of Ningbo-Zhoushan is located in Zhejiang Province, on the East China Sea coast, south of Hangzhou Bay.
The port authority announced a total traffic of 399.250 million tons of goods, including 53.32 Mt of iron ore and 53.86 Mt of crude oil. In 2014, the increase in container traffic enabled the Ningbo-Zhoushan port to surpass that of Busan to become the fifth largest in the world. In 2016, it becomes the world’s largest cargo port (over 900 million tonnes). This port is also known to have as its specialty the transport of furniture of any kind.
There is also the port of Shenzhen which is one of the busiest ports and is experiencing the fastest growth in mainland China in the south. Located in the southern region of the Pearl River Delta, in Guangdong Province, it is the economic hinterland for Hong Kong’s commercial activity with mainland China, and also one of the major ports in terms of Of China’s international trade. The port of Shenzhen is known to be specialized in electronic commerce, a development mainly due to the American giants such as Apple, Dell or HP who make there for example manufacture the bulk of their devices. Although in the area, it is Foxconn who remains the king of the city.
A final example, and not the least, is the port of Guangzhou (also known as Canton) which is currently the largest multi-purpose port in southern China. Indeed, it trade with 300 other ports. It is also very important for economy and transportation in the Pearl River Delta and in its province, Guangdong. This important traffic is largely due to the Canton Fair, which takes place twice a year (spring and autumn); the next edition (122nd edition) is scheduled from 15 October until 15 November. This huge fair is co-sponsored by the Ministry of Commerce and the People’s Government of Guangdong, while China’s Foreign Trade Center is in charge of the organization. This event welcomes exhibitors in an area of 20,000 m² which will present products of all kinds:
Electronic products and appliances, Building materials and hardware; Mechanism and installations, but also food and beverage products, household items and textiles.
Visit the official website for more information: Chinese customs