News

1. Transportation plan

Transportation route: Dongguan (factory trailer) → Shenzhen/Guangzhou port (export customs declaration) → Laem Chabang Port, Thailand (sea transportation) → BOI factory (bonded transportation and duty-free import)

Key advantages: Leveraging Thailand BOI enterprise qualifications, through standardized "bonded transportation" processes, ensures that goods enjoy duty-free import at the Thai end, saving costs.

Responsibility division: Our company is offering two options this time, either adopting the door-to-door (DDU) trade terms excluding customs duties and taxes, or the cost, insurance, and freight (CIF) terms, for your reference.

II. Detailed operation process of transportation

Phase 1: China Export Segment (Operational at the Origin)

1. Booking and pickup:

      Based on your estimated shipment date, Shangqin International has reserved space for 5 40GP containers with the shipping company.

Steel is a heavy cargo, so each container should not exceed 25 tons to avoid increasing freight rates.

     Arrange for a trailer to pick up the goods at the Dongguan factory. Shangqin International will arrange for a binding plan and ensure that the factory has the necessary conditions for container loading. They will also ensure the steel materials are properly secured, rust-proofed, and packaged to prevent damage during transportation.

2. Export customs declaration:

      Prepare the customs declaration documents for China's exports, including: contract, invoice, packing list, customs declaration authorization letter, etc.

      The export of certain steel products typically involves commodity inspection and requires the processing of a "Customs Clearance Form for Exit Goods".

Shangqin International Customs Brokerage will confirm whether an export license or other regulatory documents are required based on the HS code.

       After the goods arrive at the port, an export declaration should be made to Nansha/Shekou Customs.

3. Shipping:

      Departing from Shekou Port (SHEKOU) in Shenzhen or Nansha Port (NANSHA) in Guangzhou, the ship will either proceed directly or make a transshipment to Laem Chabang Port in Thailand. The direct voyage takes approximately 5-7 days.

     To obtain the Bill of Lading, a copy will be provided to the Thai customer in advance for verification. Once confirmed correct, the supplementary shipping documents will be submitted. This is because the Bill of Lading serves as a document of title and a crucial document for import customs clearance in Thailand.

Phase 2: Thailand import segment (destination core operation - BOI tax exemption key)

Shangqin International suggests that this is the most crucial part of the entire plan and must be closely coordinated with the Thai consignee (BOI enterprise).

1. Pre-clearance preparation (crucial):

    Verification of BOI tax exemption documents: The consignee must obtain the "Import Permit" or approval document list for this specific batch of imported goods from their BOI department in advance. This document will specify the approved list of imported equipment/raw materials, quantity, and tax exemption amount. The application process takes approximately one month, and due to the very short transportation time, applying at Laem Chabang would definitely be too late, resulting in long storage at the port and high costs.

    Preparation of customs clearance documents: The consignee needs to provide:

        * A complete copy of the BOI certificate

        * Import license

        * Business license

        * Tax registration certificate

        * Bill of lading

        * Invoice and packing list (must be consistent with the content approved by BOI)

        * Packing list, etc

  Designated customs clearance agent: Customers are strongly recommended to use a professional Thai customs broker familiar with BOI customs clearance procedures, or a customs declaration unit within the bonded supervision administrative street. If any abnormalities are encountered, they can be dealt with directly.

They can ensure that the documents fully comply with the requirements of Thai customs and the Board of Investment (BOI).

2. Thailand customs clearance and tax exemption process

    Submission of application: Before or after the goods arrive at the port, the customs clearance agent shall use the aforementioned complete set of documents to make an import declaration through Thailand's Customs EDI system, claiming BOI tax exemption status.

    Customs review: Customs will verify the physical goods against the documents, especially to check whether the goods are within the scope of the BOI-approved list and whether the value is reasonable.

   Tax-free release: After the application is approved, the customs will issue a "Tax-free Import Declaration Form", and the goods can be released without paying import tariffs and value-added tax (VAT).

3. Bonded transportation to the factory:

    After being picked up from Laem Chabang Port, the goods must be transported to the final BOI factory by a "bonded truck" that has been registered with customs.

     Throughout the entire transportation process, the goods remain under customs supervision until they are delivered to the BOI factory warehouse and the verification process is completed. The recipient is required to record this import for BOI's annual report.

III. Shangqin International Transportation Solutions and Time Efficiency

| Option 1: DDU door-to-door all-inclusive | 15 - 25 days.

| Option 2: C&F door-to-door, our company is responsible for transporting the goods to Laem Chabang Port. The Thailand segment is handled by the BOI customer or their designated agent. | 10 - 18 days (sea transportation only).

| Option 3: CIF Port-to-Port | Responsible only for ocean transportation, with both port operations handled by the consignee. | 7 - 12 days (pure ocean transportation)

For the cost advantage and controllable participation of both buyers and sellers, our company suggests:

We recommend Option 2 (door-to-door) to ensure the smooth execution of the BOI tax exemption process.

IV. Cost Estimation (Based on current week's prices, subject to the actual shipping space booking price on the date of shipment)

Local charges in China: towing fee, pick-up fee, customs clearance fee, document fee, port incidental charges, etc.

Ocean freight: The full-haul freight (including THC) for 5 x 40GP containers from South China to Laem Chabang Port.

Local fees in Thailand: document exchange fee, terminal handling fee, customs system fee, BOI customs clearance agency fee, bonded truck transportation fee, document processing fee, etc.

Door-to-door delivery excluding customs clearance and taxes (from Dongguan to Bangkok) DDU: 20,000+ RMB/40GP

Door-to-door (Dongguan to Laem Chabang Port) CIF: 10,000+ RMB/40GP

V. List of Required Documents

China's exports:

    * Commercial Invoice

    * Packing List

    * Sales Contract

    * Customs declaration form, customs declaration power of attorney

    * Customs clearance form for outbound goods (if required)

* Imported from Thailand (BOI):

    * Bill of Lading - Original or Telex Release

    * Commercial invoice & packing list

    * Thailand BOI Enterprise Certificate (BOI Certificate)

    * Import Permit

    * Articles of Association, Business License, Tax Registration Certificate

    * Goods list (needs to match the BOI approval document)

VI. Risk Warning and Suggestions

1. Consistency risk of export and import documents: The product name, specifications, and quantity on all documents (especially invoices, packing lists, and bills of lading) must be completely consistent with the BOI approval documents, otherwise tax exemption cannot be obtained. Currently, steel products exported from China enjoy a 0% tax rebate, so export customs declaration may encounter inspections. If inspections are conducted, input invoices need to be provided. If the input invoices cannot be provided, customs may submit the name of the exporter to the tax bureau, resulting in tax bureau handling tax issues, customs declaration intervention, and other export restrictions.

2. Risk of customs declaration value: *The invoice amount must align with market conditions. If it is too low, it may be deemed as dumping by customs, leading to a revaluation, fines, and delays.

3. Factory qualification risk: Before shipment, it is imperative to confirm with the Thai recipient that their BOI qualification and import license for this batch of goods are 100% valid and usable. Additionally, communicate with the customer to determine whether an FE is required. If so, the exporter needs to register with the certificate of origin authority.

4. Insurance: Purchase full-coverage cargo transportation insurance for the steel products in 5 containers to avoid potential accidental losses during transportation and loading/unloading. The insurance premium is 0.1% of the value of the goods.