Introduction
Thailand boasts geographical advantages as a hub for East-West trade, coupled with relatively low land and labour costs, as well as a skilled workforce. As the second-largest economy in ASEAN, after Indonesia, Thailand enjoys robust economic development and infrastructure, with significant market demand. Goods traded within ASEAN countries benefit from zero tariffs, and Thailand exerts considerable influence over neighbouring countries. Consequently, UK businesses are actively investing in Thailand, making it a key partner for the UK’s expansion into the Southeast Asian market. With strengthened economic and trade relations, substantive economic ties between the UK and Thailand are expected to deepen further.
Whether you’re a novice or a seasoned trader, UK companies looking to export to Thailand must thoroughly understand the country’s import and export regulations and procedures. This article compiles key regulations to consider before starting trade in Thailand into a concise guide for businesses’ reference.
Disclaimer: Import and export regulations in various countries may change periodically, which could lead to discrepancies with the information provided below. Therefore, businesses are advised to collaborate with freight forwarding companies, such as SL Global Logistics. Their professional team stays updated on the latest import and export regulations across countries, offering timely and accurate advice.
Preliminary Preparations
Thailand – Import and Export Licensing Procedures
In Thailand, importing many raw materials, petroleum, industrial machinery, textiles, pharmaceuticals, firearms and ammunition, and agricultural products requires an import licence. In some cases, importing items that do not require a licence may incur additional fees or require a certificate of origin. Additionally, certain products are subject to import controls under various laws, including obtaining necessary permits or licences and complying with relevant regulations.
Thailand – Prohibited Items
Prohibited goods are those banned from being imported into or exported from Thailand. These include:
- Narcotics
- Pornographic materials
- Counterfeit trademark goods and intellectual property-infringing items
- Counterfeit banknotes or coins
- Protected wildlife or animals listed under CITES
Thailand has eliminated the requirement for certificates of origin for IT imports under the WTO’s Information Technology Agreement.
Choosing the Right Freight Forwarder
Freight Forwarding
Currently, few logistics providers in Thailand offer comprehensive, one-stop professional logistics services. The logistics industry is relatively fragmented, with many small and medium-sized companies handling specific segments of the supply chain. This often leads to damage or quality changes to goods during transit. Thailand also lacks professionals with supply chain management experience and industry experts using advanced logistics technology. Therefore, the U.S. International Trade Administration strongly recommends engaging freight forwarding companies to handle customs clearance for Thailand’s import and export shipments to ensure goods arrive safely and on time.
Beyond devising optimal transportation plans, reputable freight forwarders can effectively manage various aspects of cross-border logistics to achieve door-to-door supply chain optimisation. These include:
- First-mile transport: Moving goods from the merchant’s warehouse to an airport or port
- Export customs clearance
- International freight transport
- Import customs clearance
- Last-mile delivery
Thailand Dedicated Line Transportation Methods
Shipping goods from the UK to Thailand typically relies on the following transportation methods:
Sea Freight
Thailand has a coastline stretching 3,219 kilometres and over 4,000 kilometres of inland waterways, significantly aiding both international and domestic transport. Thailand currently has 122 ports, of which eight are deep-water international ports. These include Bangkok, Laem Chabang, and Map Ta Phut on the eastern coast, and Songkhla, Satun, Narathiwat, Phuket, and Ranong on the southern coast. Together, they handle over 4.5 million TEUs (20-foot equivalent units) annually, with capacity expected to double upon completion of expansion plans.
Thailand’s largest port is Bangkok Port, capable of handling 14 million TEUs annually. Located south of Bangkok, it has an average water depth of 8.5 metres, allowing medium-sized vessels to navigate the Chao Phraya River. The second-largest port, Laem Chabang, located about 120 kilometres southeast of Bangkok, has a depth of about 12 metres and handles 7.3 million tonnes of cargo annually. Further south lies Sriracha Port, Thailand’s first port able to accommodate vessels with a displacement exceeding 100,000 tonnes.
Air Freight
Thailand has 48 airports nationwide, including six international and 42 domestic airports. Fixed routes are operated by 80 airlines from 53 countries, with 89 international routes connecting to over 40 cities in Europe, the Americas, Asia, and Oceania. However, due to the high cost of air freight, it accounts for only 0.02% of domestic cargo and 0.3% of international cargo by volume.
Thailand – Customs Procedures
Thailand enforces strict customs regulations, and compliance is critical to avoiding delays and issues.
Customs Clearance Documents Required by Thai Customs
The general customs clearance process for imports and exports in Thailand requires the submission of the following documents:
- Export or import declaration form, accompanied by standard shipping documents, including:
- Commercial Invoice
- Packing List
- Bill of Lading/Airway Bill
- Letter of Credit
Certain products may require import/export permits and/or authorisations from relevant agencies. Restricted imports in Thailand and their corresponding agencies include:
| Restricted Imports | Relevant Agency |
|---|---|
| Food, pharmaceuticals, cosmetics, dietary supplements | Thai FDA, Ministry of Public Health |
| Tungsten oxide, tin ore, metallic tin exceeding two kilograms | Department of Mineral Resources, Ministry of Industry |
| Firearms, bullets, explosives, firearm equivalents | Department of Provincial Administration, Ministry of Interior |
| Buddha statues, artefacts/antiques | Fine Arts Department, Ministry of Culture |
| Plants and plant parts | Department of Agriculture |
| Animals | Department of Livestock Development |
| Vehicle parts | Ministry of Industry |
| Cigarettes, tobacco, alcoholic beverages | Excise Department |
| Radio communication, telecommunication equipment | Office of the National Broadcasting and Telecommunications Commission |
Per the Thai FDA, all processed foods, health products, and cosmetics—whether imported or locally produced—must bear detailed labels. For imported foods, Thai labels must be affixed as required before entry and applied to each item before marketing. Failure to label prior to entry may result in seizure by the FDA.
Food labels for imports to Thailand must display the following key information:
- Food name
- Food serial number
- Name and address of the manufacturer, packager, or importer
- Food content expressed in metric units
- Weight percentage of main ingredients
- Allergen warning text
- Functional category name of food additives and specific names in the International Numbering System
- Flavouring agent declaration statement
- Indication of “best before date” or “expiration date”
- Warning statement (if applicable)
- Storage instructions (if applicable)
- Cooking instructions (if applicable)
- Usage instructions and basic text for infant or newborn food
In addition, the Thai Food and Drug Administration requires certain types of food to display nutrition labels and daily intake guideline labels.
Thailand – Import and Export Duties
Thailand imposes duties on imported goods and a limited number of exported goods. Duties are levied as specific taxes or ad valorem taxes (whichever is higher), with applicable ad valorem rates ranging from 0% to 80%. Generally, the value of imported goods is based on their Cost, Insurance, and Freight (CIF) value, while exported goods are based on their Free on Board (FOB) value.
Duties are payable upon the arrival of the vessel carrying the imported goods. Goods may be stored in a customs bonded warehouse for up to 45 days without submitting an import declaration, or up to 60 days after submission. Unloading and storage fees must be paid before goods are released.
In addition to import duties handled by the customs department, certain imported items are subject to excise taxes. Excise taxes are calculated based on ad valorem rates (a percentage of the suggested retail price [SRP]) and/or specific rates (based on quantity or weight). The excise tax formulas by product type are as follows:
| Excise Tax Formula | Product Type |
|---|---|
| SRP × excise rate | Motor vehicles, motorcycles, cosmetics |
| Specific rate × quantity or weight | Petroleum products |
| (SRP × excise rate) + (specific rate × quantity or weight) | Non-alcoholic beverages, tobacco products |
| (SRP × excise rate) + (specific rate × quantity or weight × alcohol content) | Alcoholic beverages |
Optimising Your Customs Experience
Expanding into international markets is a daunting task. Businesses must not only familiarise themselves with numerous laws, regulations, and requirements but also navigate foreign customs to bring products into the country. However, this does not mean abandoning Thailand’s promising market. UK companies exporting to Thailand can opt to partner with professional international freight forwarders like SL Global Logistics.
Contact Us
For SL Global Logistics, international logistics is more than just a service—it’s a partnership that connects businesses to the world. We are the UK’s freight forwarding experts for Southeast Asia, offering global logistics solutions. Our one-stop door-to-door services include sea freight, air freight, trucking, dangerous goods transport, oversized cargo transport, furniture transport, warehousing, customs clearance, and cargo insurance. Our mission is to ensure customer satisfaction. In the complex world of freight forwarding, SL Global Logistics is your trusted guide, carrying the load for you. Join us to explore streamlined international logistics solutions!