Key Takeaways
- Provide estimated duty and tax figures to the finance team well in advance
- Verify HS Codes and customs valuation before calculations
- Establish an expedited approval flow for urgent shipments
Finance Needs Visibility Before the Cargo Release Date
Many shipments face delays not due to vessel or vehicle transit times, but because of pending tax payment approvals. Providing landed cost estimates and draft shipping documents to the finance team prior to arrival minimizes dwell times and avoids warehouse storage fees.
- Duty Estimate
- VAT
- Exchange Rate
- Payment Approval
- Receipt and Accounting Record
Pros and Cons of Pre-approved Payment Limits
The main advantage is that urgent shipments bypass repeated transaction approvals. The disadvantage is that it requires robust governance and financial reconciliation to prevent balance discrepancies or misuse across shipments.
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- Thai Customs Department: Electronic paperless declaration entry guidelines and customs clearance procedures.
- Ministry of Commerce & DFT: Regulations on preferential Certificates of Origin (Form CO) and targeted import-export control lists.
Import duty and tax payments should be coordinated with the finance team before cargo arrival. If funds or payment approvals are delayed, shipments may get stuck in customs custody, incurring terminal storage and demurrage charges. Estimating duties, VAT, exchange rates, and other logistics fees in advance ensures continuous and timely customs clearance.
Frequently Asked Questions
Q: How is import duty assessed?
A: It is calculated based on the tariff classification (HS Code), customs value, and relevant tax laws. It is recommended to have a customs broker assess the figures using actual commercial documents.
Q: What happens if duty payments are delayed?
A: Delayed payments prevent the release of cargo from customs custody, leading to extra storage fees, demurrage charges, and missed delivery slots.
