Key Takeaways

• Before starting an import-export business, begin by identifying your target market and customers rather than focusing solely on finding shipping rates.
• Verify the HS Code, applicable duties, and relevant regulations or permit requirements before confirming an order.
• The purchase price from a Supplier is not the actual total cost. Calculate the Landed Cost, covering all relevant expenses until the goods reach the point where they can be sold or used by the business.
• Clearly agree on Incoterms and Payment Terms, as they affect Costs, Risks, and the responsibilities of both the Buyer and Seller.
• For the first Shipment, start with a manageable volume to control risk before scaling up once actual Demand and Costs are understood.

Where Should You Start When Launching an Import–Export Business?

An import–export business gives entrepreneurs broader access to products, Suppliers, and customers than the domestic market alone. At the same time, it involves more details than ordinary buying and selling because every Shipment must go through commercial, Logistics, and Customs processes.

Beginners should not start by asking only:

“How much does it cost per kilogram to ship from this country to Thailand?”

Or:

“How much does it cost to ship goods to this country?”

Freight charges are only one part of the total cost.

Before starting a business, you should first be able to answer these questions:

• What products will you sell?
• Who will you sell to?
• Which country will you target?
• Can the goods legally be imported or exported?
• What taxes apply?
• Are any Permits required?
• What is the actual cost to the final destination?
• Which transportation method should you use?
• Who is responsible for each cost?

When this information is clear, import–export planning carries less risk than placing an order first and trying to solve problems later.

1. Study the Market, Customers, and Competitors Before Choosing a Product

The first step should be to identify the Market Opportunity.

For an export business, research the following:

• Is there Demand in the target country?
• Who are the customers?
• Which countries do competitors come from?
• What is the market price range?
• Which Distribution Channels are used?
• How is your Product different from competitors' offerings?

For an import business, check:

• How strong is demand for the product in Thailand?
• How many competitors are there?
• Which overseas Suppliers are available?
• Can the target selling price cover the costs?
• Why would customers choose your product?

Do not choose a Product solely because it is “trending.” A Trend can change before the product is manufactured and arrives in the market.

What Should You Look at When Analyzing Competitors?

At a minimum, review:

• Product
• Price
• Quality
• Brand Positioning
• Packaging
• Distribution Channel
• Customer Reviews
• Promotion
• Shipping
• Strengths and weaknesses

The goal is not to copy competitors, but to understand the market's existing Standards and identify where your business can differentiate itself.

Do Thai Products Need Localization for Export?

In many cases, yes.

Products that sell well in Thailand may need to be adapted for overseas markets in terms of:

• Language
• Packaging
• Label
• Size
• Flavor
• Design
• Product Claims
• Instructions for use
• Sales Channels

Selling Thai products overseas without making any adjustments is therefore not suitable for every market.

Suggested Internal Link: 5 Popular Thai Products Loved by Foreign Consumers: Opportunities to Grow an Export Business

2. Check Product Regulations, Laws, and Permits Before Ordering

One of the most costly mistakes beginners make is ordering goods before checking whether they can be legally imported.

Different product categories may be regulated by different laws or authorities, including:

• Food
• Cosmetics
• Medicines
• Dietary Supplements
• Electrical Appliances
• Toys
• Chemicals
• Plants
• Animal Products
• Industrial Products

Some items can be imported under standard procedures, while others may require:

• Registration
• Permits
• Product Testing
• Labeling
• Certificates
• Compliance with specific Standards

Before paying a Deposit to a Supplier, make sure you have clear Product Specifications.

Product Information to Request from a Supplier

Prepare at least the following:

• Product Name
• Product Photo
• Brand
• Model
• Manufacturer
• Country of Origin
• Material
• Ingredients, where applicable
• Specification
• Datasheet, where applicable
• Dimensions
• Weight
• Battery / Liquid / Chemical details, where applicable

This information helps you check Regulations, HS Code classification, and Transportation Requirements.

When Should You Check Whether Imported Products Require Thai FDA Approval?

Check before confirming a Commercial Shipment.

Food, cosmetics, and other products regulated by the Thai Food and Drug Administration may require steps involving import premises, Product Registration, Labeling, or relevant Permits.

Do not ask the Supplier to dispatch the goods before the required documentation is ready.

Suggested Internal Link: 4 Steps Importers Should Know: How to Obtain Thai FDA Approval for Food Imports

How Should You Check Whether a Product Is Subject to TISI Requirements?

For industrial products, check whether the item falls within the scope of a mandatory standard.

Do not rely only on the fact that a Supplier has a CE mark or an overseas Certificate. Thai requirements must be checked separately.

Prepare:

• Brand
• Model
• Manufacturer
• Specification
• Datasheet

Use these details to determine the applicable Product Scope.

Suggested Internal Link: What Is the TISI Mark? How It Affects Import and Export Businesses

3. Check the HS Code, Duties, and FTA Before Calculating Costs

The HS Code is essential for import–export operations because it is linked to:

• Import Duty
• Export / Import Regulations
• FTA
• Certificate of Origin
• Customs Declaration
• Trade Measures

Two products with similar names may have different HS Codes depending on their:

• Material
• Function
• Composition
• Usage
• Specification

Do not select an HS Code based only on a product name on a Marketplace.

Why Should Beginners Check the HS Code Before Ordering?

Because Duties can change the cost immediately.

Hypothetical example:

Customs Value = THB 500,000

If the Duty Rate is 0%:

Import Duty = THB 0

If another tariff classification has a Duty Rate of 10%:

Import Duty = THB 50,000

This difference directly affects the product's Margin.

Suggested Internal Link: Why Is the HS Code Important in International Shipping?

Can an FTA Reduce Import Duties?

It may, if:

• The trading countries have a relevant FTA
• The HS Code qualifies for preferential treatment
• The goods meet the Rules of Origin
• Valid Proof of Origin is available

Examples include:

• Form D for trade within ASEAN under the ATIGA conditions
• Form E for ASEAN–China trade under the ACFTA conditions

However, having a Form does not mean the duty rate is 0% for every product.

Check the actual Tariff for the applicable HS Code first.

Suggested Internal Link: What Are Form A, Form D, and Form E? How to Claim Import–Export Tariff Preferences

Why Is a Certificate of Origin Important?

A Certificate of Origin, or C/O, certifies the origin of goods.

It may be relevant to:

• FTA
• Tariffs
• Buyer Requirements
• Import Regulations

The Country of Origin does not necessarily have to be the same as the Country of Export.

For example, goods originating in China and shipped from a Warehouse in Singapore do not automatically become Singapore-origin goods.

Suggested Internal Link: What Is a Certificate of Origin? Types of C/O and Required Documents

4. Calculate Landed Cost Before Setting the Selling Price

The price quoted by a Supplier is not the final cost.

Import Shipment costs may include:

• Product Cost
• Packing
• Origin Inland Freight
• Export Clearance
• International Freight
• Insurance
• Origin Charges
• Destination Charges
• Import Duty
• VAT
• Customs Clearance
• Warehouse Costs
• Domestic Delivery

Adding these costs together gives a closer estimate of the cost of bringing goods to the point where they are ready for sale or use.

This concept is called Landed Cost.

Example: Why the Cheapest Product May Not Be the Best Value

Supplier A

Product = THB 100 per unit
MOQ = 10,000 units

Supplier B

Product = THB 110 per unit
MOQ = 2,000 units

If the business chooses Supplier A because its Unit Price is lower, it may need to spend:

THB 1,000,000

on inventory.

Supplier B would require:

THB 220,000

Although the Unit Cost is higher, the business may need less working capital and face lower Inventory Risk.

Therefore, consider:

Cost + MOQ + Lead Time + Demand + Cash Flow

together.

Are Import Duties Calculated Only from the Purchase Price?

You should not simply multiply the Product Price by the Duty Rate in every case.

Import Duty must be calculated using the Customs Value under the applicable rules, while import VAT has its own calculation base.

Businesses should estimate tax costs before confirming an Order to avoid miscalculating the Margin.

Suggested Internal Link: What Is Customs Value (CIF)? 4 Steps to Calculate Import Taxes

5. Clearly Agree on Incoterms and Payment Terms

International trade requires the parties to agree on:

Who is responsible for what, and up to which point?

Incoterms are an important tool for defining these responsibilities.

Common Terms include:

• EXW
• FCA
• FOB
• CFR
• CIF
• CPT
• CIP
• DAP
• DDP

Each Term has a different Scope and limitations.

Do not choose one based only on familiarity.

Why Do Incoterms Affect a Supplier's Quoted Price?

Because:

EXW USD 10,000

and

CIF USD 10,000

do not cover the same Costs.

If a Buyer compares Suppliers without checking Incoterms, the prices may appear identical even though the Transportation responsibilities differ significantly.

The Incoterm should therefore be specified together with the relevant Place or Port in the Commercial Agreement.

What Payment Terms Are Commonly Used?

Payment arrangements in international trade include:

• Advance Payment
• Deposit + Balance
• T/T
• Letter of Credit
• D/P
• D/A
• Open Account

Each arrangement carries different levels of risk for the Buyer and Seller.

When working with a new Supplier for the first time, do not consider Price alone. Payment Risk also matters.

Who Is a Letter of Credit (L/C) Suitable For?

A Letter of Credit may be suitable for higher-value or higher-risk Transactions where the Buyer and Seller want a Banking Structure to help manage payment.

However, an L/C involves:

• Fees
• Document Requirements
• Banking Processes
• The risk of Discrepancies

Documents must therefore be prepared carefully.

Suggested Internal Link: What Is a Letter of Credit (L/C)? A Payment Method Importers and Exporters Should Know

6. Choose a Suitable Transportation Method and Prepare the Documents

There are several Modes of Transport for import–export shipments:

• Air Freight
• Sea Freight
• Road Freight
• Air Courier

There is no single best Mode for every Shipment.

Choose based on:

• Product
• Weight
• Volume
• Urgency
• Destination
• Freight
• Shelf Life
• Handling Requirements

What Is Air Freight Suitable For?

Air Freight is suitable for goods such as:

• Urgent Shipments
• Samples
• Spare Parts
• High-value / Low-volume Cargo
• Goods with limited Lead Time

However, Freight is usually higher than Sea Freight, and additional checks may be needed for Dangerous Goods, Batteries, or Airline restrictions.

Suggested Internal Link: What Products Are Suitable for Air Freight? What to Know Before Shipping

What Is Sea Freight Suitable For?

Sea Freight is suitable for goods that:

• Have a high Volume
• Are heavy
• Are not urgent
• Can accommodate a predictable Lead Time

If the goods do not fill a Container, LCL may be an option. You do not always need to wait until you have enough goods to fill a Container.

What Is Road Freight Suitable For?

For trade with countries connected by land, such as ASEAN or CLMV countries, Road Freight can be another option.

You should also consider:

• Border
• Customs
• Route
• Truck Type
• Cross-border Requirements

What Documents Are Commonly Required for a Commercial Shipment?

Documents vary by product and country, but commonly include:

• Commercial Invoice
• Packing List
• Bill of Lading / Air Waybill
• Customs Declaration
• Certificate of Origin, where applicable
• Import / Export Permit, where applicable
• Product Certificate, where applicable

The information on each document should be consistent, including:

• Product Description
• Quantity
• Weight
• Value
• Shipper
• Consignee

This helps reduce problems during Customs Clearance.

How Does Packing Affect Transportation Costs?

Packing affects more than cargo safety.

Package dimensions after packing can directly affect Freight costs.

This is particularly important for Air Freight, where Chargeable Weight may be based on a comparison between Actual Weight and Volumetric Weight.

Using boxes that are larger than necessary can increase the cost per Shipment.

The goal should be:

Adequate product protection + no unnecessary increase in Volume

Suggested Internal Link: How to Pack Goods Safely: 5 Ways to Reduce Damage During International Shipping

7. Start with a Test Shipment, Measure Results, and Then Scale

Beginners do not always need to start with a large Commercial Lot.

If the market and Supplier have not yet been validated, consider starting with:

• Samples
• Trial Orders
• Small Commercial Lots
• LCL
• Air Freight
• Marketplace Tests

as appropriate.

The goal of the first Shipment does not have to be maximum profit. It should also help you learn the actual costs and Processes.

What Should You Measure During the First Shipment?

Examples of data to record include:

• Product Cost
• Freight
• Duty
• VAT
• Clearance Cost
• Delivery Cost
• Lead Time
• Damage
• Supplier Delays
• Customs Issues
• Sales Conversion
• Customer Feedback
• Profit Margin

Use the results to plan the next Shipment.

When Should You Increase Volume?

Increase Volume when supported by evidence such as:

• Consistent Demand
• Repeat Orders
• Positive Margins
• A Stable Supplier
• Regulatory Readiness
• Controllable Logistics Costs
• Suitable Inventory Turnover

Do not increase Volume simply because the Supplier offers a lower price per unit.

The discount may be smaller than the cost of Overstock.

Where Should Beginner Exporters Start Looking for Customers?

The right channel depends on the product and market. Options include:

• Distributors
• Importers
• Wholesalers
• Marketplaces
• E-commerce
• Trade Fairs
• Social Media
• An Own Website
• B2B Platforms
• Business Partners

The strategy in CPL's original article that remains useful is to focus on:

• Scale
• Reach
• Speed
• Partnership
• Localization

These principles should be adapted to the actual Product and target market.

What Is Scale?

Scale is the ability to increase Sales or Volume while ensuring that the back-end systems can still support the business.

Before increasing Orders, check:

• Can the Supplier produce enough?
• Can the Warehouse handle the volume?
• Is there enough Cash Flow?
• Is sufficient Freight Capacity available?

Generating more sales without being able to deliver can create Supply Chain problems.

What Is Reach?

Reach is the ability to access and connect with Customers.

Exporters can build awareness through channels such as:

• Search
• Marketplaces
• Distributors
• Social Media
• Events
• Trade Partners

However, Reach should be supported by a clear Target Audience, rather than simply maximizing the number of people who see the product.

Why Is Speed Important?

Speed in the following activities can create a competitive advantage:

• Responding to Inquiries
• Providing Quotes
• Sending Samples
• Manufacturing
• Delivery

However, businesses should not increase Speed by using Air Freight for every Shipment if their Margins cannot support it.

Improve both the Process and Logistics instead.

Why Is Partnership Important in Overseas Markets?

A Local Partner can help a business with:

• Distribution
• Market Knowledge
• Regulations
• Customer Access
• Local Operations

This is particularly useful in markets where the business does not yet have its own team.

However, check the following before signing an Agreement:

• Partner Background
• Contract
• Territory
• Pricing
• Exclusivity
• Payment

How Can Localization Help Thai Products Sell More Easily?

Localization means more than simply translating the language.

It may include:

• Product Size
• Flavor
• Packaging
• Labeling
• Communication
• Price Point
• Promotion
• Channel

For example, a product size popular in Thailand may be too large for a market where consumers prefer a Trial Size.

Adapting a Product to Consumer Behavior can create more opportunities than selling the original Product without changes.

Does an Import–Export Business Need to Be a Registered Company?

It depends on the business model and Shipment.

Individuals may be able to conduct international transactions in some cases. However, for ongoing Commercial activities, the business structure should appropriately address:

• Business Registration
• Tax
• Customs Registration
• Accounting
• Permits
• Contracts

Importers and Exporters must also check the relevant Registration requirements for Customs procedures.

Suggested Internal Link: What Is the Customs Paperless System? An Easy Guide to Importer–Exporter Registration

Should Beginners Use a Freight Forwarder or Manage Shipments Themselves?

It depends on the business's capabilities.

An International Shipment may involve several stages, including:

• Booking
• Pickup
• Packing
• Export Clearance
• Documentation
• Main Freight
• Import Clearance
• Delivery

Business owners can manage some stages themselves, but they must clearly understand their Responsibilities.

A Freight Forwarder can help coordinate multiple Logistics stages. However, the cargo owner remains responsible for providing accurate Product information and documentation.

What Information Should You Give a Freight Forwarder When Requesting a Quote?

Prepare the following:

• Product Name
• Photos
• Number of Packages
• Dimensions after Packing
• Gross Weight
• Origin
• Destination
• Pickup Address
• Delivery Address
• Incoterms
• Ready Date
• Battery / Liquid / Chemical details, where applicable
• Temperature Requirements, where applicable

Simply asking:

“How much does it cost to ship from China to Thailand?”

is not enough to estimate the actual Total Logistics Cost accurately.

Import–Export Mistakes Beginners Should Avoid

• Ordering goods before checking Regulations
• Choosing a Supplier based only on the lowest Price
• Not checking the HS Code
• Not calculating Duty and VAT
• Not understanding Incoterms
• Not checking the Country of Origin
• Not asking about FTA eligibility
• Not calculating Landed Cost
• Using Packing unsuitable for Transportation
• Providing an unclear Product Description on the Invoice
• Shipping before the documents are ready
• Failing to allow enough Lead Time
• Ordering a large Lot before testing the market
• Not arranging Insurance for Cargo with significant risk
• Looking only at the Freight Rate and ignoring Destination Charges
• Not keeping enough Cash Flow to cover Import expenses

Many of these problems can be prevented before the Supplier dispatches the goods.

Checklist: 7 Things to Check Before Starting an Import–Export Business

Before the first Shipment, make sure the following are covered:

• The market and Customer are clearly identified
• The Product and Supplier / Buyer have passed preliminary checks
• Regulations and Permits are ready
• The HS Code has been checked
• Duty, Tax, and FTA eligibility have been checked
• Landed Cost and Selling Price have been calculated
• Incoterms and Payment Terms are clear
• The Logistics Mode suits the goods
• Packaging is ready
• The Commercial Invoice and Packing List are ready
• Customs Registration is ready
• The Shipment Timeline is prepared
• There is a plan for handling Delays
• There is a plan for Market Testing and increasing Volume

If any of this information is missing, it is better to resolve the issue before confirming the Shipment rather than waiting until the goods are already in transit.

Frequently Asked Questions About Starting an Import–Export Business (FAQ)

Which Country Should Beginners Import From?

There is no single best country for every business. Choose based on the Product, Supplier, Price, Regulations, Freight, FTA, and Demand in the Thai market rather than considering the country alone.

Do I Need to Know the HS Code Before Importing?

You should check it before confirming the Order because the HS Code affects Duty, Permits, FTA eligibility, and Customs Declaration.

Are Taxes Payable When Importing Small Quantities?

Tax obligations depend on the type of goods, value, import method, and applicable laws. Do not assume that “small quantities” are automatically exempt from taxes.

Do I Need a Full Container to Start Exporting?

No. Air Freight or LCL Sea Freight can be used when the Shipment Volume is still relatively small.

Does Buying on CIF Terms Mean There Are No Costs When the Goods Arrive in Thailand?

No. CIF defines responsibilities under Incoterms only up to a specified point. Destination Charges, Customs Clearance, Duty, Tax, and Delivery costs may still apply, depending on the Shipment.

Does Having Form E Mean I Do Not Have to Pay Import Duty?

Not always. Check the HS Code, Preferential Tariff, and Rules of Origin to determine the actual preferential treatment available for the goods.

Should I Ship a Large Shipment the First Time?

If the Product, Supplier, or market has not yet been tested, start with a Volume that allows you to manage risk. Use the actual results to plan how to Scale the next Shipment.

Import–Export Services with CPL INTER

CPL INTER provides international freight services by air, sea, and road, along with Packing, Shipping Documents, Warehousing, and Customs Clearance services according to the Shipment's Service Scope.

Entrepreneurs starting an import–export business can prepare the product name, photos, Product Specifications, quantity, dimensions, weight, origin and destination countries, Incoterms, and Ready Date. The CPL INTER team can then help review the Logistics information and plan a suitable transportation method before Booking.

Tel: 02-519-4426 / 091-519-4426
LINE: @cplinter

Written by: CPL Inter Logistics Operations Team, specialists in international freight transportation and customs procedures, with more than 15 years of experience and an internationally recognized ISO 9001:2015 quality management system.