This is a common concern for many people, including both businesses and individuals who need to import goods from abroad. Managing import taxes can be a significant challenge, regardless of the shipping method used. The key question is how to minimize the tax amount while ensuring efficient delivery. For businesses, high taxes can impact profit margins, while individuals may face unexpected costs when ordering products from overseas. If you’re seeking to import goods and reduce your tax expenses, it is indeed possible. Today, Freight Rangers is here to offer solutions to help you achieve this. By leveraging the best practices and strategies for using air freight, you can streamline your import process and save money. Freight Rangers provides the expertise and guidance you need to navigate the complexities of import taxes and secure cost savings.
To reduce import duties on goods, what can you do?
If you want to reduce import duties on goods, you might wonder what you can do. Today, Freight Rangers has the following suggestions for you:
Declare the Item as a Gift
First, you can have the seller declare the item as a gift so that you won’t incur import duties. However, this is applicable only if the item is not too heavy or too large.
Declare the item as having No Commercial Value
Declaring an item as “No Commercial Value” simply means informing customs that the item is not being imported for commercial purposes. However, this should also be based on the condition that the item is not excessively large or heavy.
Choose Registered Mail for Shipping
Choosing Registered Mail for shipping is another effective technique to reduce the likelihood of import duties being assessed. You can request the overseas seller to ship the item via registered mail. Generally, since many shipments use this method daily, customs inspections are often less stringent compared to private courier services. Additionally, registered mail is typically cheaper, though it may take longer to receive your package. Overall, it can be a worthwhile option for reducing costs.
Separate Goods into Distinct Categories
Separating goods into distinct categories can help reduce your import duties, as duties generally vary depending on the type of item. If you know you’ll definitely incur import duties due to ordering a large quantity, it’s advisable to categorize the items clearly.
For example, separate clothing into one box, and magazines and books into another box, before combining them into a larger box for shipment. By categorizing items this way, customs will not lump everything together, potentially resulting in uniform import duty rates. Instead, this approach may allow for a more accurate assessment of duties, where some items might incur lower duties or none at all.
Ensure the CIF Value of the Goods Does Not Exceed 2,000 Baht
Additionally, you need to ensure that the goods you are importing have a CIF (Cost + Insurance + Freight) value of no more than 2,000 baht. According to customs law, if the total value including shipping and insurance does not exceed 2,000 baht, you will not be required to pay import duties. Here’s how to calculate it:
- Cost: The price of the goods, which can be found on the Commercial Invoice.
- Insurance: Insurance cost is 1% of the price of the goods.
- Freight: The international shipping cost.
Make Sure that the Item Is Not a Restricted Product
You need to make sure that the item is not classified as a restricted product or one that requires special import/export permits, such as controlled substances or products that need specific documentation or licenses. If your item is a restricted product, it could be subject to fines or confiscation.
Request a Certificate of Origin from the Country of Origin
Request a Certificate of Origin from the country where the goods originate, especially if it is from a Free Trade Agreement (FTA) or free trade zone such as ASEAN, India, China, Korea, Japan, New Zealand, Australia, Peru, or Chile, for example.
Consult a Freight Forwarder Before Purchasing
Consult with a Freight Forwarder company like Freight Rangers before making any purchases, especially if you’re considering air freight services. Our team of experts is ready to provide advice on import and export matters, helping you feel more confident and accurately calculate your expenses. This approach is more beneficial than rushing to import goods only to face higher costs that could lead to financial loss or even bankruptcy.
Consult Freight Rangers for Importing Goods from Abroad
How do you find the useful tips on importing goods from abroad and reducing import duties that Freight Rangers shared today? Our goal is to help you save on unnecessary expenses and ensure you receive the goods you want as expected.
If you have any questions beyond the advice provided or are interested in our services, such as air freight or sea freight, feel free to consult with the Freight Rangers team at http://m.me/freightrangers
Let us assist you in managing your international import and export processes safely and efficiently, tailored to your specific needs