What you need to know about import taxes and fees at the destination | SME Shipping

Caution regarding import fees and taxes for goods at destination.

Although exports from Thailand are exempt from Value Added Tax (VAT 0%), businesses should not overlook the taxes and fees that the recipient overseas may have to pay. These can affect customer satisfaction and the overall cost of international trade transactions. This article from SME Shipping will guide you through the precautions regarding import fees and taxes to ensure your business runs smoothly.

What is import tax?

Import duty is a tax levied by the government of a destination country on goods imported from other countries. Its purpose is to protect domestic producers, increase government revenue, and control the types of goods allowed to enter the country.

Import tariffs vary depending on the type of goods and the destination country, such as:

  • Fashion clothing: 10–30%
  • Electronic device: 0–15%
  • Food and beverages: Additional taxes and hygiene requirements may apply.

Import duties are usually calculated based on:

  • Value of the goods (including shipping and insurance costs)
  • Customs Tariff Code (HS Code)
  • Regulations of the destination country.

How do taxes and duties affect your shipment?

Import taxes and duties can directly impact all types of export businesses, regardless of...

  1. The total cost to the customer at the destination, including any additional taxes they may have to pay upon receiving the goods, could result in a price higher than expected.
  2. Delivery delays may occur if customs documentation is incomplete or if the goods require special inspection.
  3. Customers may be dissatisfied if they have to pay taxes without prior notice, or if there is a misunderstanding about the charges.
  4. The risk of goods being rejected if import taxes are too high: Customers may refuse to accept the goods, forcing the seller to bear the burden of returning the products.

Taxes and fees to be aware of.

1. Import Duties

  • Each country has different import tax rates, depending on the type of goods and their value.
  • Certain types of goods may be exempt from tariffs if they are covered under a free trade agreement (FTA).

2. Value Added Tax (VAT / GST) at the destination.

  • Many countries levy value-added tax or service tax (e.g., GST in Australia, VAT in the European Union).
  • Even though the goods may be exempt from tax by the exporter, the recipient may have to pay VAT upon delivery.

3. Customs Clearance Fees

  • Some countries charge import handling fees or special inspection fees.
  • You should check with the logistics provider in advance.

 4. Transportation company fees (Handling Fee / Brokerage Fee)

  • Shipping companies such as DHL, FedEx, or UPS may charge additional fees for customs processing.

 Recommendations for entrepreneurs.

  • Clearly inform customers that there may be additional charges at the destination.
  • Study the destination tariffs in advance, or use the services of an international logistics consultant.
  • Use Incoterms appropriately, for example:
  • DAP (Delivered At Place): The seller is responsible for delivery to the destination, but the customer is responsible for import taxes.
  • DDP (Delivered Duty Paid): The seller is responsible for all shipping costs and import taxes.

Although it is possible to claim a VAT refund in Thailand, it is advisable to consider the "total cost including destination" to ensure a positive customer experience, avoid misunderstandings, enable professional international pricing planning, and ensure smooth business growth alongside the economic downturn.

Conditions for claiming VAT refund for exported goods | SME Shipping

Conditions for Value Added Tax (VAT) refund for exported goods.

Exporting goods to foreign countries is another business that receives government support and generates significant import and export value every year. Under Thai Value Added Tax (VAT) law, exported goods are exempt from the 0% (Zero-rated VAT) rate to promote the competitiveness of businesses in the global market. However, even though exporters don't have to pay VAT on exported goods, they can claim a refund of VAT paid to domestic suppliers of raw materials, services, or goods. This article from SME Shipping will guide you through the process of claiming a VAT refund for goods, raw materials, or services related to exports, subject to the conditions set by the Revenue Department.

1. Those eligible to claim a VAT refund.

  • We are a VAT-registered business operator.
  • The goods were actually exported in accordance with legal procedures.
  • There is complete and accurate supporting evidence and documentation. 

2. Key conditions for claiming a VAT refund.

2.1 This is an export product eligible for VAT exemption code 0%.

  • Exporting goods from Thailand directly to foreign countries.
  • It must be proven that the goods have actually left the Kingdom.

2.2. Complete export documentation is available.

  • Export Declaration
  • Full tax invoice
  • Proof of shipment, such as a bill of lading (or air waybill).

2.3 Submit a tax refund request within the specified period.

  • Within 3 years from the due date for filing the VAT return form (Form P.P.30) for the relevant month.

3. Documents required for VAT refund application.

  • Form K.P.10 (Tax Refund Request Form)
  • Purchase tax list
  • Tax invoice
  • Copy of the customs declaration form / shipping document.
  • Other supporting documents as required by the Revenue Department. 

4. How to apply for a VAT refund.

  • Submit it through the Regional Revenue Office where the business is registered.
  • Alternatively, you can choose to submit the form online through the Revenue Department's e-Filing system.

Products eligible for Value Added Tax (VAT) refund.

Businesses can claim a VAT refund on exported goods only if the goods meet the criteria stipulated by law, which generally means they were genuinely exported outside the Kingdom and have complete export documentation.

✅ Types of products that meet the criteria

  • Products exported from Thailand to other countries.
  • Shipping by sea, air, or international postal parcel.
  • An export declaration form that has been cleared by the Customs Department is required.
  • Goods in the form of raw materials or parts used in manufacturing and export.
  • Examples include electronic components, food raw materials, packaging, etc.
  • It is necessary to demonstrate a genuine connection to the exported products.
  • Products are sold to international customers and shipped directly overseas.
  • This is not a sale to individuals within the country, even if the customer is located abroad. 

❌ Products that do not meet the criteria.

  • Products that are sold and consumed domestically.
  • Goods exported "without a customs declaration" or without evidence of movement out of the country.
  • Goods that have been exported but have not undergone proper customs clearance.

Claiming a Value Added Tax (VAT) refund for exported goods is a tax benefit that businesses should not overlook. It can effectively reduce costs and improve business liquidity. However, strict adherence to the Revenue Department's procedures and conditions is crucial to avoid rejection or future problems. The refund process has clear criteria and conditions, particularly regarding supporting export documentation, application deadlines, and eligibility criteria for goods and services. Therefore, businesses should carefully study this information to ensure they don't miss out on these tax benefits.

How to check the status of international parcel delivery | SME Shipping

How to track the status of international parcels, giving customers peace of mind.

International shipping can be daunting for many customers, especially when delivery takes longer than domestic shipping. To build confidence and trust with customers, businesses should provide clear information and tracking options. This article from SME Shipping will show you how to easily check the status of your international parcel.

1. Provide the tracking number immediately after shipping the goods so that customers can track the status at all times.

2. Recommend websites for checking parcel status. Specify websites or links for checking parcel status from various companies, such as:

  • DHL: https://www.dhl.com
  • FedEx: https://www.fedex.com
  • UPS: https://www.ups.com
  • Thailand Post (EMS World): https://track.thailandpost.co.th

3. Tracking via application: We recommend that customers download the shipping company's app or a comprehensive parcel tracking app such as ParcelTrack, 17TRACK, or AfterShip, which allows you to check the status of multiple providers in one place.

4. Provide periodic status updates. If the shipping system is not updating in real-time, the store should periodically inform customers of the status, such as "item has left warehouse / arrived at distribution center / in the process of customs clearance," etc.

Advantages of international parcel tracking services.

Tracking international parcel status is essential for both merchants and customers to conveniently and reliably monitor the progress of their shipments. Here are the advantages of tracking international parcel status.

1. Increase customer confidence.

The ability to track package status allows customers to know where their packages are in transit and to estimate their expected delivery date. It also helps reduce concerns about delayed or lost deliveries.

2. It helps stores manage their deliveries better.

Stores can track the status of packages directly during transit, allowing for immediate coordination with the shipping company in case of any problems or errors. Tracking also helps stores improve service and achieve faster delivery times.

3. Reduce the risk of loss or delays.

Tracking parcel status allows you to monitor the progress at each stage of shipping. If there are delays or problems that could lead to parcel loss, you can immediately notify the shipping company for resolution, reducing the risk of issues that may occur during international shipping.

4. Reduce complaints and inquiries.

When customers can track their own packages, stores receive fewer complaints or inquiries about shipping status. This saves both stores and customers time and reduces the hassle of contacting customers during delivery.

The fact that various shipping companies provide customers with ways to track international parcels themselves is crucial in building customer confidence, increasing the convenience of tracking delivery status, and reducing anxiety for customers who may order high-value items and need to constantly monitor their shipment status. It also allows businesses to manage shipments efficiently and reduces customer complaints in case of unforeseen events. Therefore, parcel tracking is a tool that enhances customer satisfaction and the shopping experience, and strengthens the trust of your business.

Is Cash on Delivery (COD) available for international shipments? | SME Shipping

Is Cash on Delivery (COD) available for international shipments?

In today's fiercely competitive online retail market, service providers employ various strategies to attract customers, from shipping and packaging to payment. One popular payment method in the domestic market is "COD," which provides buyers with confidence that the goods will arrive before payment. However, when it comes to international shipping, many may wonder if COD is still applicable, and what limitations or conditions they should be aware of. This article from SME Shipping will guide you through the essential details of "COD," or "Cash on Delivery."

What is cash on delivery (COD) service?

Cash on Delivery (COD) is a payment service that allows you to pay upon receiving the goods. It's ideal for customers who want peace of mind before paying. Customers pay the delivery person when they receive the package at their home or designated pickup point. After payment is completed, the shipping company will transfer the money back to the store or seller according to their established transfer schedule.

  • C = Cash | O = On | D = Delivery
  • COD (Cash on Delivery) - Payment is collected upon delivery of the goods.

The reason why COD (Cash on Delivery) is not usually used for international shipments.

Although cash-on-delivery (COD) services are very popular in domestic trade, as they build customer confidence and boost sales, they are rarely used or are severely limited when it comes to international shipping. This is due to security concerns, the complexity of international transactions, and the requirements of various international shipping companies, particularly regarding taxes, customs, and financial procedures that are significantly more complex than those for domestic sales.

  1. There is a payment risk as the carrier cannot guarantee that the recipient overseas will pay.
  2. Tax and customs complexities are involved; goods shipped internationally often have to pass through customs, making COD (Cash on Delivery) difficult.
  3. Refunds to the seller in the country of origin can be time-consuming and involve high fees.
  4. Most multinational shipping companies do not support COD (Cash on Delivery), such as FedEx, DHL, UPS, or Thailand Post (for international shipments); they generally do not offer COD service.

Recommended alternatives to COD for international sales.

  1. Make a prepayment through a secure platform: such as PayPal, Stripe, Wise, or bank transfer.
  2. Sell through global e-commerce platforms: such as Amazon, eBay, Etsy, and Shopee Global, which have systems to protect both buyers and sellers.
  3. Use a payment gateway that supports multiple currencies: to build confidence with international customers.

Advantages of COD service

  • Customers are confident that they will receive the goods before paying.
  • Suitable for customers who do not have a credit/debit card or are unable to transfer money.

Disadvantages of COD service.

  •  There is a risk that customers may refuse to accept the goods or fail to pay.
  • Sellers may incur additional costs, such as COD (Cash on Delivery) fees.
  • The money is being delayed because we have to wait for the transfer to be processed back.

How to export goods

Before joining SME Shipping, I worked as a logistics employee for a private company that was expanding into new international markets. The management assigned me the responsibility of managing the entire export process to ensure that our goods were shipped smoothly, safely, and on time across the sea.

Previously, I had handled some domestic transportation, but when I moved into "international export" more seriously, I found that there were more details to manage than I initially thought, such as... Customs documents Coordination with Shipping company This article outlines the procedures involved at both the domestic and destination markets, including cost calculations, to ensure a company's sustainable competitiveness in the global market. It's written from my personal experience and aims to be useful to readers who are also newly responsible for export operations.


1. Understand the product and the target market.

1.1 Analyze the product.

The first thing I learned was that we need to clearly understand our product – its characteristics, whether it requires special care or packaging. Some types of products, such as fresh food, perishable products, or certain chemicals, may require… Freight transportation techniques Specialized requirements include conditions regarding temperature, humidity, and safe packaging standards.

  • Product CategoryFresh food, machinery, clothing, or electronic goods will have different export restrictions and conditions.
  • Quantity and weightIf you're shipping a large quantity of heavy goods, choosing a Full Container Load (FCL) container might be more cost-effective. However, for smaller quantities, Less than Container Load (LCL) can be a worthwhile option.
  • Value of the goodsThe higher the value of the product, the more we may need to consider certain factors. Cargo insurance Cargo insurance is a special insurance to protect against damage during transportation.

1.2 End Market

  • Regulations of the importing country.You need to check the taxes, customs policies, or product safety standards, as these may differ significantly from those in Thailand.
  • Import tariff ratesSome countries may have relatively high import tariffs. If our products are not included in a free trade agreement (FTA), this could increase the final price consumers pay, making it difficult to compete.
  • Consumer behaviorIt's essential to understand what kind of products customers in the destination country want in order to set appropriate prices and develop marketing strategies.

A thorough understanding of our products, including the conditions of the end market, will help us plan our export strategies correctly and reduce future risks.


2. Internal company preparations.

2.1 Coordinate with the production and warehouse departments.

Exporting goods is not the responsibility of the logistics department alone, but requires collaboration among many departments within the company, especially production and warehousing.

  • Production DepartmentIt is necessary to know what products need to be produced and in what quantities, in order to prepare raw materials and control quality to meet customer requirements and export standards.
  • Warehouse DepartmentGoods must be stored properly, an efficient inventory rotation system (e.g., FIFO) should be used, and stock information should be provided to the logistics department for accurate delivery time calculations.

Clear communication between departments helps us know when to start the shipping process and address any limitations promptly.

2.2 Plan the export schedule.

Once I have the quantity and the shipment is ready, I will check it. Ship schedule (Sailing Schedule) Shipping company Various options are available to choose the most suitable shipping schedule. If you need to ship goods continuously on a monthly basis, you may consider agreeing to a long-term contract to obtain a more favorable freight rate.


3. Study customs documents and procedures.

The key to "how to export goods" is managing the... Customs documents Accurate handling is crucial; errors or delays could result in goods being stuck at the port and incurring unnecessarily high costs.

  • Commercial InvoiceThe document specifies seller and buyer information, product details, price, and payment terms.
  • Packing ListSpecify packaging information such as the number of boxes, weight, and size of the pallet or container.
  • Export LicenseIf the product requires special permission, such as agricultural products, hazardous materials, or medical products.
  • Certificate of OriginIn the event that our products may receive preferential tariff treatment in certain countries, if there is an FTA agreement.

Customs Clearance

In Thailand, it is now possible to submit documents electronically, significantly reducing paper-based processes. However, careful attention must still be paid to filling in information, such as ensuring the HS Code is correct for the product type, to avoid problems later.


4. Choose a shipping company.

When choosing a transportation service provider, I recommend considering several factors, including: Ship schedule (Schedule) Service costs (freight + port fees) including service quality.

  • Price comparisonRequest quotations from multiple providers to see who offers the best price and has a schedule that matches your needs.
  • Reputation and reviewsIf you have friends or acquaintances in this field, try asking them about their experience using the service beforehand to help you make a decision more easily.
  • Freight ForwarderAnother option is to use a freight forwarder who can help you plan and manage the entire process of shipping. While there may be additional service fees, it can save time and reduce risk significantly.

5. Container packing and selection.

5.1 Packing

  • Choose sturdy packaging materials and boxes to protect against moisture and impact during transport.
  • Clearly label and display warning symbols, such as "Fragile" or "Items that must be placed in a specific direction."
  • For temperature-sensitive products (such as frozen food), ensure that you use a reefer container with an appropriate temperature control system.

5.2 Types of Containers

  1. Dry ContainerFor general dry goods.
  2. Reefer ContainerFor chilled, frozen, or temperature-controlled goods.
  3. Open Top / Flat RackFor items that exceed the dimensions of a standard cabinet door.
  4. FCL vs. LCLIf a container is full or nearly full, FCL (Full Container Load) should be used to prevent mixing with other goods. However, for smaller quantities, LCL (Less Than Container Load) may be a better option to save costs.

6. Export taxes and fees.

When exporting goods internationally, it's essential to understand all aspects of the costs, including taxes and other fees, in order to plan expenses accurately.

  • Freight chargesThe cost is calculated per cubic meter (CBM) or by weight, depending on the type of goods, or it may be calculated per full container load (FCL).
  • THC (Terminal Handling Charge)Port service fees, such as container handling fees and port management fees.
  • Various documentsFor example, fees for issuing invoices and fees for filing export declarations.
  • Export taxThailand may impose export taxes on some types of goods (but it is not widespread).
  • Import tax at destinationIf the terms of sale state that we are responsible for Delivered Duty Paid (DDP), we must include this tax in the pricing structure.

7. Incoterms and Cargo Insurance

7.1 Incoterms

Incoterms are international agreements that specify which costs and risks the seller and buyer are responsible for. For example:

  • FOB (Free on Board)The seller is responsible until the goods are loaded onto the ship at the port of origin. After that, the buyer is responsible.
  • CIF (Cost, Insurance and Freight)The seller covers shipping costs and insurance up to the destination port, but the remaining risk during transit rests with the buyer.
  • DDP (Delivered Duty Paid)The seller is responsible for everything until the goods reach the buyer's doorstep (including import taxes at destination).

7.2 Cargo Insurance

In some cases, insurance may not be mandatory, but if the goods are high-value or high-risk, such as fragile or perishable items, it's advisable to have insurance to mitigate risk.

  • All RisksCovers all damages except those specified as exclusions (e.g., war or intentional destruction).
  • Institute Cargo Clauses (A, B, C)Each option offers different levels of protection. You should choose the one that best suits the type of goods and the route you are taking.

8. Actual implementation steps.

8.1 Book the container and confirm the delivery date.

Once production and warehousing are ready, I will contact the transportation provider (or freight forwarder) to book containers, specifying the date and time for the container trucks to pick up the goods. If it's an FCL (Full Container Load), I will schedule it in advance to ensure a smooth container loading process.

8.2 Inspect the condition of the container.

Before packing the goods, thoroughly inspect the interior of the container, checking for leaks or unpleasant odors. If any problems are found, immediately notify the shipping company to replace the container.

8.3 Packaging (Stuffing)

This step requires strict control over how goods are placed in the container to prevent damage. Heavy items should be distributed evenly throughout the area, and measures should be taken to prevent them from easily moving during transport.

8.4 Cabinet Seal

After packing is complete, the container will be sealed for security. Upon arrival at the destination, the consignee will re-check the seal to ensure it matches the documents.


9. Track the status during shipping.

Once the goods have begun transiting the ship, I will track their status via the shipping line's tracking system, which is usually available on their website or API. If there are delays due to weather conditions or port congestion, the overseas buyer should be notified promptly so they can make preparations.


10. Clear the goods at the destination.

If the Incoterms specify that the buyer handles the customs procedures at the destination (e.g., FOB or CIF), our primary responsibility is reduced. However, with DDP, we may need to contact local authorities to assist with clearing the goods, paying import duties, and delivering the goods to the recipient. This should be planned in conjunction with an experienced freight forwarder or local agent.


11. Evaluate and improve.

After the goods reach overseas customers, I usually do a "Post-shipment Review" to summarize...

  1. Actual expenses How does this compare to the budget?
  2. Shipping time Did it meet the customer's expectations?
  3. problem Encounters along the way include delayed documents, damaged goods, etc.

After evaluating the situation, I will discuss it with my internal team to develop solutions for the next time, whether it's selecting a new shipping line, changing packaging, or improving operational systems.


12. Tips from a beginner's perspective.

  1. Create checklists.It compiles all the steps, from preparing goods and customs documents to tracking the ship, helping prevent forgetting minor tasks.
  2. Communicate clearly internally.Everyone in the company must understand their role to prevent any omissions or inaccuracies in the information.
  3. Always study the regulations.Customs procedures and taxes vary from country to country. It's advisable to stay informed about logistics news, such as on the websites of the Customs Department or the Department of International Trade Promotion.
  4. Expand the network.Getting to know people in other fields or experts can help us gain useful and up-to-date knowledge or advice.
  5. NegotiateIf our company has consistent export volumes, we may be able to negotiate shipping discounts or obtain better offers than smaller exporters.

Summary

Care How to export goods Using shipping routes might seem complicated and detailed for newcomers, but once I actually started doing it and worked systematically with the relevant teams, I found that the key was... Planning and Prudence Every step of the process, from reviewing documents and completing customs procedures to selecting the right shipping company, until the goods safely reach the buyer.

If we do this well, it will not only help the company save costs and enhance its image in international markets, but it will also build customer confidence, demonstrating that we are truly "ready" and "professional" in international exporting. For those just starting out in this field, I encourage you to try applying the guidelines and tips I've shared. I guarantee that exporting goods by sea won't be too difficult and will open doors to new opportunities in the global trade arena!

For international freight forwarding consultations, contact SME Shipping at 02 105 7777 or Line: @Shipping.

Export procedures

In an era of continuous expansion of international trade,“Exporting goods”"This has become a significant opportunity for Thai entrepreneurs to expand their markets and increase sales. However, international exporting is not simply about packing goods and shipping them; it also requires numerous processes and regulations to meet international standards. The following content will explain..." Export procedures From initial planning to post-delivery evaluation, this guide also includes precautions and tips for increasing growth opportunities in international markets.

1. Market and product analysis for export.

First step For entrepreneurs looking to enter the export business, careful analysis of overseas markets is crucial, whether they are neighboring ASEAN countries, European nations, the United States, the Middle East, or others. Key considerations include:

  1. Market demandWhat types of products are currently in demand? What trends or fads are popular in the target area?
  2. Standards and regulationsCertain types of consumer goods must undergo quality checks or obtain certifications according to the standards of the importing country, such as agricultural products, processed foods, or some industrial goods.
  3. Competition in the marketYou should research how many similar products are available in the market, who the main players are, and who your competitors are.

Once these three points are understood, entrepreneurs can plan production, improve product quality, and position themselves effectively in the market.


2. Preparing documents and customs procedures.

Customs procedures It is an important part of Export procedures Exporters must pay special attention to this, as even small mistakes can result in huge costs and fines. The necessary documents are as follows:

  1. Export LicenseCertain types of products, such as agricultural products, hazardous materials, or products under government control, require permission from the relevant authorities.
  2. Commercial InvoiceSpecify product information, unit price, quantity, and payment terms.
  3. Packing ListDisplays the details of the products packed in each box/package, specifying the size, weight, and quantity.
  4. Certificate of OriginConfirm that the product has been adequately manufactured or processed in the country of origin (Thailand).
  5. Cargo insurance documents (If applicable): Importers may sometimes be required to provide proof that insurance covers damage or loss.

Once all the necessary documents are prepared, they must be submitted through the customs system (electronic submission services are currently available) and all fees must be paid correctly. Careful verification of the information in the documents is therefore essential.


3. Choosing an international shipping method.

in Export procedures The choice of transportation system plays a significant role in delivery time and cost. There are three main methods:

  1. Sea Freight
    • strengthLow cost, suitable for large quantities of goods, heavy items, or long-distance transportation that requires considerable time.
    • LimitationsIt takes a long time and may be affected by weather conditions.
  2. Air freight
    • strengthFast, ideal for products that require freshness or have high value.
    • LimitationsShipping costs are higher, so it's suitable for lightweight items.
  3. Land transport
    • strengthSuitable for transportation in nearby regions, such as ASEAN or neighboring countries.
    • LimitationsIt often depends on infrastructure such as roads, border checkpoints, and government regulations.

Furthermore, it's advisable to compare shipping rates and terms from various logistics providers, especially regarding reliability, delivery time, and additional services such as online tracking.


4. Cargo Insurance

When goods are transported to international markets, the risk of damage or loss increases due to weather conditions, sea conditions, or even the handling processes at ports and airports. Therefore, Cargo insurance This is another important step in exporting, and there are several levels of protection, such as:

  • All RisksCovers almost all types of damages, except those specified in the terms and conditions.
  • Free From Particular Average (FPA)Coverage includes major damage such as shipwreck, but does not cover minor damage.
  • Institute Cargo ClausesInternationally accepted insurance terms and conditions in many countries.

Exporters should choose insurance based on the nature of the goods and the level of risk. For high-value goods such as machinery, jewelry, or electronics, it may be worthwhile to take out All Risks insurance.


5. Defining the terms of sale and payment (Incoterms)

International trade terms and conditions, also known as... Incoterms International Commercial Terms (INCOT) are agreements used worldwide that define the responsibilities between the seller and buyer regarding transportation, customs duties, or risk of damage to goods. Examples of common Incoterms include:

  1. EXW (Ex Works)The seller is only responsible for preparing the goods at the designated location; the buyer is responsible for all transportation and related expenses.
  2. FOB (Free on Board)The seller is responsible for loading the goods onto the vessel or vehicle at the designated port/airport. The buyer assumes the risk thereafter.
  3. CIF (Cost, Insurance and Freight)The seller is responsible for the cost of the goods, shipping, and insurance until delivery to the destination port, but the risk of damage to the goods after loading onto the ship rests with the buyer.
  4. DDP (Delivered Duty Paid)The seller is responsible for all costs, including import taxes, up to the agreed destination.

Choosing the correct Incoterms will help both parties understand each other and reduce potential conflicts later.


6. Handling taxes and other fees.

Export laws and regulations Things vary from country to country, so you should check. Costs and taxes of exporting. Carefully, for example:

  • Export TaxAlthough not common, some countries may impose additional taxes on certain types of goods, including Thailand in some cases.
  • Import DutyThe buyer or importer may be required to pay according to the laws of the destination country.
  • Value Added Tax (VAT) or Goods and Services Tax (GST)Depending on the jurisdiction of the destination country.
  • Port/airport chargesPort fees, loading fees, and document handling fees.

Coordinating with shipping or logistics companies that specialize in each country is a way to reduce the chance of errors and ensure that you have up-to-date information.


7. Marketing and networking in international markets.

Once the goods arrive in a foreign country, the next thing the entrepreneur needs to do is... Marketing in international markets To be effective, no matter how good the product is, it's difficult to achieve the expected sales without promotion. The main methods include:

  1. Participating in a trade fair.Opportunities to network, meet buyers, close business deals, and explore market trends.
  2. Online marketingUse social media and e-commerce networks to quickly reach international customers.
  3. Local distributors or partners.Having local representatives helps in penetrating markets and developing sales strategies that resonate with consumers.

8. Post-export monitoring and evaluation.

Once the product has reached the customer, don't forget... Follow up Check that the goods have arrived on time and are in perfect condition. If any damage occurs, contact the shipping company or relevant agency and claim compensation according to your insurance.

in addition Evaluation Exports also include...

  • Costs incurred relative to revenue.Analyze whether the risk and time involved are worthwhile.
  • Customer satisfactionRequesting feedback or reviews helps us identify areas for improvement in future exports.
  • Opportunities for future market expansion.If this market has high potential and the competition is not too fierce, planning to expand production capacity or exports would be an interesting next step.

9. Risk management in export businesses.

Exporting businesses face various risks, ranging from exchange rate volatility to political and economic uncertainty in target markets. Tips for managing risk include:

  1. Exchange rate risk insuranceEntering into a forward contract or using other financial instruments to hedge against volatility.
  2. Market diversificationDon't rely on a single market; expand to multiple countries to avoid a sharp drop in sales should the main market slow down.
  3. Stay updated on laws and global trends.International law is constantly changing, as are international political and trade conditions, so it is important to stay informed.

10. Tips for Long-Term Success

  1. Invest in quality.Products of high quality and meeting international standards have a competitive advantage in exports.
  2. Build a strong brand.International customers often prioritize trustworthiness, and branding helps increase product value.
  3. Find opportunities in the digital world.International e-commerce platforms or marketplaces like Alibaba and Amazon Global can reduce marketing costs and reach customers worldwide.
  4. Train the team.A team that understands the export process and possesses negotiation skills, as well as proficiency in English (or the local language of the target market), will help minimize errors and build a positive image for the company.

summarize

Export procedures This involves various details, including legal aspects, document management, customs procedures, international transportation, cargo insurance, and risk management. Businesses seeking success in international markets need to carefully study and plan every step, as well as modernize their processes to keep pace with the ever-changing global situation.

However, exporting also opens doors to new opportunities. Expanding businesses and building networks with diverse international partners can lead to exponential growth, provided entrepreneurs are well-prepared from the start, develop high-quality products to meet standards, and manage risks wisely. International exports In a sustainable and stable manner.

In conclusion, we hope this article will provide entrepreneurs interested in international trade with an overview of the process. Export procedures It becomes clearer that whether you're a newcomer or an experienced professional, by keeping up with market trends, adapting strategies to the situation, and continuously improving the quality of your products and services, success in the global market is within reach.


Additional tips:

  • It would be very beneficial to seek additional information from export support agencies such as the Department of International Trade Promotion (DITP) or the Office of Small and Medium Enterprises Promotion (OSMEP).
  • If you are unsure about the process, you should consult an expert or use the services of a company that specializes in export consulting.
  • Stay informed about free trade agreements (FTAs) and various tariff policies that may be beneficial or create new conditions for exports.

Exporting is like opening a gateway to a wider world full of opportunities and challenges. However, if entrepreneurs are fully prepared at every step, they are more likely to succeed and grow far in the international market.

Shipping food to the US: Why are some packages allowed through customs and others not?  

The reason why small packages sometimes send food into the United States and sometimes don't. 

This could be due to a complex combination of factors and not just one single cause, such as: 

Differences in carrier policies and transportation routes. 

  • Shipping carriers (DHL, FedEx, UPS, or the postal service) may use different routes or customs checkpoints, leading to varying interpretations of regulations and inspections. 
  • Some shipping companies have different "lists of prohibited items or items requiring special permits," which can result in situations where one service provider can ship certain items while another cannot. 

Stricter customs and regulatory measures in the United States (e.g., the FDA). 

  • The United States has relatively strict laws regulating food imports, especially for products related to health or food safety. 
  • Small packages may undergo random checks; some “may” slip through, while others are randomly detected and either suspended or returned. 

Product declaration and supporting documents. 

  • If the export/import customs declaration or food-related documents (such as Certificate of Origin, food import license) are incomplete or do not meet the requirements, the goods may be rejected. 
  • Clearly and accurately labeling the product (e.g., "Dried Fruit" or "Instant Snack") can simplify customs clearance compared to vague labeling (e.g., just "Food"). 

Import laws for individuals vs. commercial purposes. 

  • If it's a "gift" or "personal use" shipment in small quantities, customs officials may be more lenient than with commercial imports, which require specific permits. 
  • But it also depends on the type of food being shipped and the checkpoint in charge. 

Officer's Discretion 

  • Even with the same documents and the same type of goods, different customs officers or officials may make different decisions. 

For shipping goods to the USA, contact SME Shipping at 021057777 or Line @shipping.

6 Shipping Cost Factors Every Business Should Know | SME Shipping

6 Factors Affecting International Shipping Costs That Businesses Should Know

International shipping costs are a significant expense that businesses must manage efficiently. Increased transportation costs impact product pricing and global market competitiveness, as numerous carriers offer competitive pricing and services to meet the needs of businesses. Shipping costs aren't solely dependent on distance; other factors include product type, transportation method, and international economic and political conditions. To help businesses understand these factors and plan effectively, this article from SME Shipping will detail six key factors affecting international shipping costs.

1. Distance and transportation routes.

Distance is a major factor directly affecting shipping costs. The further the destination, the higher the shipping cost. Furthermore, routes passing through multiple countries may incur additional fees such as tolls or insurance. High-risk routes, such as those through conflict zones or areas with inadequate road conditions, may also require higher insurance premiums.

2. Types of products

The characteristics of the goods directly affect shipping costs. Heavy or large items, such as machinery or construction materials, which require careful handling and tighter packaging, will have higher shipping costs than smaller and lighter items. Additionally, certain types of goods, such as temperature-controlled products (frozen goods), hazardous materials (like chemicals), or high-value items (like jewelry), often have higher shipping costs due to the special care they require.

3. Shipping Mode

The method of transportation affects delivery time and overall cost. Although air freight is faster, it is more expensive than sea freight. Sea freight has lower unit costs but takes longer. Rail and road freight are suitable for transportation between neighboring countries, such as shipping from Thailand to Laos, Malaysia, or China.

4. Customs taxes and fees.

Import duties, shipping taxes, and customs fees vary from country to country, with different regulations and rates affecting transportation costs. These include import taxes, customs fees, inspection fees, and various documentation fees. Failure to thoroughly study the regulations of the destination country may result in unnecessary fines or additional fees. Therefore, before exporting goods internationally, businesses must carefully research import taxes and fees.

5. Exchange rates and oil costs.

International shipping costs are typically determined in major currencies, such as the US dollar. Therefore, currency fluctuations can unexpectedly increase costs. Fuel prices are also a significant factor directly impacting shipping costs, as they are a major expense for airlines, shipping lines, and trucking companies. When fuel prices rise, shipping companies usually adjust their fuel surcharges accordingly.

6. Seasonality and market conditions.

Seasonality and market conditions are other factors that affect transportation costs. Periods of high transportation demand, such as holidays, the end of the year, or the start of the school year, often lead to increased costs due to heightened demand for services. Furthermore, events that disrupt transportation, such as natural disasters, protests, or political conflicts, can inevitably increase transportation costs.

International business requires consideration of factors affecting shipping costs. This includes not only distance and transportation methods, but also hidden costs such as taxes, exchange rates, and market conditions. Careful planning and management of shipping costs helps businesses compete effectively and reduce risk.

Green logistics and its importance to businesses | SME Shipping

What is green logistics? Why should businesses prioritize it?

In an era where environmental concerns have become a global priority, businesses are increasingly focusing on environmentally friendly operations. One popular approach is green logistics, which helps reduce the environmental impact of transportation and supply chain processes. Beyond demonstrating social responsibility, it also enhances business competitiveness. This article from SME Shipping will explore what green logistics is and how it can benefit businesses today.

What is Green Logistics?

Green logistics is a logistics management approach that focuses on reducing environmental impact, such as reducing greenhouse gas emissions, using clean energy, managing waste efficiently, and using technology to improve transportation efficiency. It can be applied to all logistics processes, from warehousing and transportation to distribution and overall supply chain management.

How should SMEs adapt to green logistics?

SME entrepreneurs need to adapt to green logistics to survive and remain competitive in a rapidly changing market, enabling their businesses to grow alongside the modern world. This includes the following:

  1. Market trends and customer demand: Customers are increasingly prioritizing environmentally friendly products. Businesses that adapt quickly will have a competitive advantage.
  2. Requirements and laws: Many countries have enacted stricter environmental laws, and businesses that fail to adapt may face trade restrictions.
  3. Long-term cost reduction: Using clean energy, optimizing transportation routes, and reducing waste can help lower operating costs.
  4. Creating a positive image: Businesses with environmental policies will gain more acceptance from customers and business partners.

The benefits of Green Logistics

Adopting green logistics concepts not only helps reduce environmental impact but also benefits businesses in many ways, including cost reduction, increased operational efficiency, and a positive corporate image, among other advantages that SME entrepreneurs should be aware of.

  1. Reduce operating costs: Using clean energy and efficient transportation systems helps reduce energy and fuel costs.
  2. Reduce environmental impact: Reduce greenhouse gas emissions, decrease waste, and promote the efficient use of resources.
  3. Enhance your competitiveness: Businesses that prioritize the environment gain customer trust and can more easily access new markets.
  4. Compliant with standards and laws: Reduce the risk of being fined or having business restrictions imposed by environmental regulations.
  5. Promoting the company's image: Demonstrating social responsibility builds trust with customers and partners.

Green logistics is not just an environmentally friendly concept, but a crucial strategy for sustainable business growth and differentiation in a highly competitive market. It's not merely a concept focused on environmental protection, but a key strategy for efficient operations, long-term cost reduction, and meeting the demands of a modern market that prioritizes sustainability. Furthermore, adopting green logistics enables businesses to comply with environmental standards and laws, enhances their corporate image, and increases opportunities to connect with like-minded customers and business partners. Therefore, businesses that prioritize green logistics can differentiate themselves from competitors and achieve stable long-term growth in a highly competitive market.

Shipping large items internationally | SME Shipping

How to ship large items internationally in the most cost-effective way?

Shipping large items internationally requires careful planning because several factors affect costs, such as transportation fees, import duties, shipping methods, and packaging. Without proper planning, costs can exceed what they should be. However, there are several ways to reduce expenses and make shipping more cost-effective, including choosing the right shipping method, utilizing cost-efficient logistics companies, or reducing packaging costs. This article from SME Shipping will guide you through key strategies to help you maximize the cost-effectiveness of shipping large items abroad.

1. Choose the appropriate transportation method.

Choosing the right transportation method can reduce costs and increase efficiency in delivering large items. To select the most cost-effective shipping option, consider the speed, cost, and limitations of each channel, as follows:

     1.1 Shipping by sea (Sea Freight)Suitable for large and heavy goods. Lower cost than air freight, but takes longer (2-8 weeks depending on the destination).

  • FCL (Full Container Load)Renting an entire shipping container is cost-effective for large quantities of goods.
  • LCL (Less than Container Load)Sharing space in a container is ideal for small quantities of goods that don't fill the entire container.

     1.2 Air FreightSuitable for products requiring speed but with high costs; ideal for high-value and lightweight goods.

     1.3 Delivery by truck or train (Rail/Road Freight)Applicable to some countries, such as those in Asia or Europe. Shipping costs are lower than air freight and faster than sea freight.

2. Use a transportation company that provides full-service transportation.

Choosing a logistics company that offers comprehensive transportation services, from pickup and packing to customs handling, provides convenience and reduces the hassle of shipping. Currently, there are many transportation companies covering all services, both domestically and internationally, such as:

  • DHL Express: Provides international shipping services for oversized items, supporting a maximum weight of 1,000 kg per item and a total weight of 3,000 kg per shipment. The maximum dimensions per item are 300 cm in length and 200 cm in width.
  • TNT Express: Offers large parcel delivery services, with additional fees for parcels exceeding standard sizes, depending on the service type selected.
  •  LIDI Express: Provides international shipping services for large items such as personal belongings, furniture, and house moves, with nationwide pickup and direct-to-door delivery.
  •  SME SHIPPING: Specializing in international shipping of documents and parcels worldwide. Ideal for small to medium-sized businesses and individual customers.
  • Fast Ship is a platform that connects businesses and individuals with international express shipping services through leading logistics companies such as FedEx, Aramex, and UPS.

3. Consider additional fees for large packages.

Shipping packages that exceed standard sizes or lengths may incur additional fees. For example, packages longer than 100 centimeters may incur extra costs such as storage fees, special handling fees, or express shipping fees. Therefore, it's advisable to check costs in advance to minimize unnecessary expenses, as more space and potentially specialized vehicles are required for transportation.

4. Proper packaging of goods.

Goods should be packed securely to prevent impact and damage during transportation, especially fragile items. These should be wrapped in multiple layers of cushioning material and the package properly sealed. To reduce shipping costs, choose strong yet lightweight materials.

5. Study the import taxes and fees at the destination.

Each country has different regulations regarding import taxes and fees. Studying and preparing the correct documents can help avoid unexpected costs. Therefore, before shipping large items internationally, be sure to check these documents thoroughly.

  • Check the HS Code and tariff rates of the destination country.
  • Utilize DDP (Delivered Duty Paid) or DAP (Delivered at Place) terms as agreed with the customer to reduce overall costs.

To ship large items internationally cost-effectively, several factors must be considered, such as size, weight, destination, and desired delivery time. Therefore, choosing the right shipping company and making thorough preparations will help ensure that international shipments of large items are as cost-effective, safe, and efficient as possible.