Thread: Start importing business

We import agricultural products (for the rubber industry) and you need a company set up here, after which you need to apply for an import permit, after which you must apply for a permit to import the various goods you wish to import.
Confused?
Then you must pay 7% VAT and up to 5% duty on imported goods for agricultural purposes - or you can get away with 0% depending on what it is. If you are importing from an ASEAN country you duty is less.

Sit down with a good accountant and let them do the whole lot.

It is not an easy process. Not at all.

Having a company in HK does not have any impact.

Thai Customs are one of the most corrupt organisations in the whole country.

Originally Posted by panama hat

We import agricultural products (for the rubber industry) and you need a company set up here, after which you need to apply for an import permit, after which you must apply for a permit to import the various goods you wish to import.
Confused?
Then you must pay 7% VAT and up to 5% duty on imported goods for agricultural purposes - or you can get away with 0% depending on what it is. If you are importing from an ASEAN country you duty is less.

Sit down with a good accountant and let them do the whole lot.

It is not an easy process. Not at all.

Having a company in HK does not have any impact.

Confused ?? Major headache !!

Is there any "lite" version ? How long does the whole process take ?
I understand it's no easy process, that's why I wanted to find a way to test the market first.

Beside, how is usually the reaction of the local competition when facing a new (foreign) player, especially when dealing in rural areas ?

Difficult . . . How does the competition take it? I have only one very important suggestion: If you're Caucasian then do NOT front the company, rather stay in the background.

It takes a few months to complete the procedure, but once it comes to classifying your goods . . . it is a maze.

How will you test the procedure without the paperwork, company reg., permits etc? You can't.

It;snot fun and the customs guys are pricks. bastards

Thai customs love to rip off anyone they can put their hand off, they are only second to the corrupt police force here if that gives you a clue

Thank you everybody for your very useful comments.

I've been told that using the services of a reputable forwarder can really help the negotiation with the custom, is that right?

Originally Posted by EmperorTud

Thai Customs are one of the most corrupt organisations in the whole country.

This is valid for ALL developping countries.
No exception.
And quite a few developped ones...

Originally Posted by Norton

Originally Posted by panama hat

If you're Caucasian then do NOT front the company, rather stay in the background.

Way back, out of sight and be very wary of Thai partners.

Not being sure of your situation, your best bet may be to find distributors/dealers for your product and ship eveything FOB to them. This will preclude the need to have a Thai registered company but you will have to make sure you have control of the product source or distributors will simply cut you out of the loop.

Actually I will be the exporter out of China. This way I can book the profits in Hong Kong, I don't intend to make any profit in Thailand, or anymore than really necessary. And it will be difficult to cut me out of the loop, this side at least.

The reason I wish to be on the other side too is to insure reasonable selling prices and honest quality. The last part is important, I have seen importers taking advantage of a reputable brand, then mixing with lower quality products and destroying for ever the reputation of the brand and of the original seller.

Originally Posted by Bluecat

Originally Posted by EmperorTud

Thai Customs are one of the most corrupt organisations in the whole country.

This is valid for ALL developping countries.
No exception.
And quite a few developped ones...

15 years of export out of china, never have any problem ...

Originally Posted by Perota

I've been told that using the services of a reputable forwarder can really help the negotiation with the custom, is that right?

I've found some of the forwarders to be next to useless, but I was importing a heavily protected product.

I have the contact details of a Thai company who are very experienced in importing stuff and are the go-between between the freight company and the wankers at C&E. I'll PM their details to you.

Originally Posted by Perota

The reason I wish to be on the other side too is to insure reasonable selling prices and honest quality.

If all the invoices come from the HK company and are paid to there, seems you would be wise to look into registering what is known as a Representative Branch office of your HK company. This will allow you a local presence to do what is needed to keep retailers in line. Consult a lawyer for advice and help in setting up the company.

"A representative office of foreign corporations may also be established to engage in limited “non-trading” activities, such as sourcing of goods or services in Thailand for its head office or inspecting and controlling quality of goods which its head office purchases in Thailand. Other activities can cover disseminating information about new products and services of its head office, and reporting to its head office on local business development and activities."

Here's a link to help you do some basic business planning. Good link but some of the info especially in the area of costs of doing business in Thailand is inaccurate.

Company Establishment

Originally Posted by Perota

Originally Posted by Bluecat

Originally Posted by EmperorTud

Thai Customs are one of the most corrupt organisations in the whole country.

This is valid for ALL developping countries.
No exception.
And quite a few developped ones...

15 years of export out of china, never have any problem ...

Well, as far as I know, exporting has never been a problem...

Originally Posted by Perota

Originally Posted by Bluecat

Originally Posted by EmperorTud

Thai Customs are one of the most corrupt organisations in the whole country.

This is valid for ALL developping countries.
No exception.
And quite a few developped ones...

15 years of export out of china, never have any problem ...

10 years of export out of Thailand. Numerous problems, bribes paid, threats made, extortion, goods withheld, etc, etc, etc.

Originally Posted by Perota

I've been told that using the services of a reputable forwarder can really help the negotiation with the custom, is that right?

having a good agent is key, mine was quite good, and even though I wasn't to paid duties etc... I still had to pay some tea money to get my container out. The good news is that it cost me about 10,000 THB while I have know others trying to do the same thing themselves being charged 100,000 THB by custom officials or wait 6 months for the cargo to clear (and pay the storage fee of 400 THB per day)

Having a farang business her can present problems among your competitors, the Hua-Hin property businesses are all ways stabbing each other in the back, and going to the authority's to get them into trouble.

Thanks everybody and especially people who PM me some very useful information. Unfortunately I'm still "underage" (not yet 20 posts) and I can't thank you individually.

Today I got a very interesting information that can really jump start my business. It seems that a Thai citizen can import under his (her) private name a couple of time (2-3 times seems to be the norm) before the custom start asking for an established commercial entity. We are talking of a 20' container / 28 cbm, around US$ 20K, each time, nothing that can fit in a suitcase. But my forwarder seems pretty confident it will be ok. And it should be perfectly legal !!! Does anybody has, or know someone who has , ever tried this before ?