Key Takeaways

• Import duties are not calculated solely from the product price shown on the Invoice. The Customs Value must also be considered in accordance with the applicable valuation rules.
• For general goods, Import Duty is commonly calculated as Customs Value × the duty rate applicable to the HS Code.
• Import VAT for general goods is calculated on a base that includes Customs Value and Import Duty, as well as other relevant taxes where applicable.
• HS Code, Country of Origin, and FTA eligibility can cause substantial differences in the duty rates applicable to goods.
• International Freight, Import Taxes, and Port / Airport charges are separate cost components. Before placing an order, calculate the full Landed Cost.

What Are Import Taxes?

When goods are imported from another country into Thailand, they may be subject to taxes and duties depending on the product type, value, origin, and applicable laws.

Common charges encountered by importers include:

• Import Duty
• Value Added Tax (VAT)
• Excise Tax for certain product categories
• Other taxes or levies imposed under specific laws
• Customs / Logistics fees and charges

Therefore, the term

“Import Taxes”

should not be used to refer to every cost incurred after goods enter the country.

This is because

Import Duty ≠ VAT ≠ Customs Clearance Fee ≠ Local Logistics Charge

Each item has a different calculation method and may be collected by a different party.

What Import Taxes Apply to General Goods?

For General Cargo that is not subject to special taxes, businesses generally need to consider two main components.

Import Duty

This is a duty charged according to the type of goods and the applicable customs tariff rate.

Rates may include:

• 0%
• 5%
• 10%
• 20%
• 30%

or other rates specified by the tariff classification and applicable laws.

Some tariff lines may use specific calculation methods and are not necessarily calculated as a percentage of value in every case.

Therefore, the actual tariff for the relevant HS Code must be checked.

Value Added Tax (VAT)

Imports into Thailand are subject to VAT under the applicable VAT legislation.

The general VAT rate currently in use is 7%.

However, tax rates and legal measures can change, so the current rate should be checked again before the actual import.

What Is the Starting Point for Calculating Import Taxes?

The key starting point is the Customs Value.

For introductory explanations, calculations are often illustrated using the CIF concept.

CIF consists of:

C = Cost

The value of the goods

I = Insurance

The relevant insurance cost

F = Freight

International freight to the point used as the customs valuation basis under the applicable customs rules

The basic concept is therefore:

Customs Value ≈ Cost + Insurance + Freight

However, legally, Customs Value does not mean that these three figures can simply be added together for every Shipment without checking the applicable rules.

Customs valuation must follow the valuation methods prescribed by law.

Suggested Internal Link: What Is Customs Value? Understanding CIF-Based Customs Valuation

Is Customs Value the Same as the Price on the Invoice?

Not necessarily.

For example, a Supplier sells goods for:

FOB USD 10,000

This price may not include:

• International Freight
• Insurance

When the goods are imported into Thailand, Customs Value is therefore not automatically USD 10,000 alone.

Conversely, if the Purchase Term is:

CIF Bangkok

the Invoice Price may already include Freight and Insurance as part of the transaction.

Therefore, check the following before calculating Customs Value:

• Incoterms
• Commercial Invoice
• Freight
• Insurance
• Relevant adjustments

How to Calculate Import Duty for General Goods

The basic formula is:

Import Duty = Customs Value × Import Duty Rate

Example:

Customs Value = THB 100,000

The applicable HS Code has a duty rate of 10%.

Import Duty =

100,000 × 10%

=

THB 10,000

The 10% rate in this example is for illustration only.

The actual rate must be checked against the tariff classification applicable to the Shipment.

How to Calculate Import VAT

For general goods with no other types of tax involved, the basic principle can be understood as follows:

VAT = (Customs Value + Import Duty) × VAT Rate

Using the previous example:

Customs Value = THB 100,000

Import Duty = THB 10,000

VAT Base =

100,000 + 10,000

=

THB 110,000

If VAT = 7%:

VAT =

110,000 × 7%

=

THB 7,700

The two taxes in this example are therefore:

Import Duty = THB 10,000

VAT = THB 7,700

Total =

THB 17,700

This is an example intended to explain the basic principle for general goods.

If the goods are subject to:

• Excise Tax
• Specific Tax
• Other Duty

the calculation base may include additional components.

Full Example of Import Tax Calculation

Suppose a Thai business imports goods from another country.

Customs Value =

THB 500,000

The HS Code has an Import Duty rate of:

10%

Step 1: Calculate Import Duty

500,000 × 10%

=

THB 50,000

Step 2: Calculate the VAT Base

500,000 + 50,000

=

THB 550,000

Step 3: Calculate VAT

550,000 × 7%

=

THB 38,500

Step 4: Calculate the Preliminary Total Tax

Import Duty = THB 50,000

VAT = THB 38,500

Total =

THB 88,500

This figure is not yet the Total Landed Cost, because other Logistics and Customs Service charges may still apply.

How Does the HS Code Affect Import Taxes?

The HS Code is one of the most important pieces of information for calculating Import Duty.

Different tariff classifications can have different rates.

Conceptual example:

Product A

Normal Rate = 0%

Product B

Normal Rate = 10%

Product C

Normal Rate = 20%

Even if Products A, B, and C have the same CIF value, the taxes payable can differ significantly.

Therefore, goods should be classified correctly before estimating tax.

Suggested Internal Link: What Is an HS Code? How to Read Customs Tariff Codes and Why They Matter for Import and Export Taxes

Can You Use the HS Code Provided by the Supplier to Calculate Import Taxes Immediately?

It should not be used without verification.

An overseas Supplier may provide the code used in the country of origin.

However, Thailand may have different tariff details under the AHTN beyond the first six digits of the HS Code.

In addition, a Supplier may classify goods incorrectly.

Before using a tariff code to calculate taxes, verify the following:

• Product Description
• Material
• Composition
• Function
• Technical Specification
• HS Code applicable in Thailand

How Can an FTA Reduce Import Taxes?

Goods that meet the origin requirements under a Free Trade Agreement may qualify for preferential duty rates.

Conceptual example:

Normal Rate = 10%

FTA Rate = 0%

If the goods:

• Meet the Rules of Origin
• Have valid Proof of Origin
• Comply with the conditions of the Agreement

the Importer may be able to claim a Preferential Tariff.

This can substantially reduce Import Duty.

However, it is important to emphasize that:

Importing from a country that has an FTA with Thailand does not mean that every product will qualify for a 0% tax rate.

Eligibility must be checked for each HS Code.

Why Is Country of Origin Important for Import Taxes?

Country of Origin does not necessarily mean the country from which the goods were most recently exported.

For example:

Goods are Made in China.

They are stored in a Warehouse in Singapore.

They are then shipped from Singapore to Thailand.

In this case, the:

Country of Export = Singapore

but the:

Country of Origin = China

FTA eligibility must be determined according to the product's rules of origin under the relevant Agreement.

Therefore, the Shipper's country should not automatically be treated as the Country of Origin.

Does a Certificate of Origin Always Reduce Import Taxes?

No, not in every case.

It is important to distinguish between:

• Non-preferential Certificate of Origin
• Preferential Proof of Origin

A general document certifying origin does not automatically mean that the goods qualify for a Tariff Preference.

To claim FTA benefits, the importer must use the Proof of Origin required under the relevant agreement and comply with the Rules of Origin.

Suggested Internal Link: What Is a Certificate of Origin? Understanding Origin Certificates for Import and Export

How Are Form D and Form E Related to Import Taxes?

Forms or other Proof of Origin documents under an FTA may be used to support a claim for preferential duty rates.

Examples:

Form D

Related to preferences under the ASEAN Trade in Goods framework, subject to the applicable conditions.

Form E

Related to the ASEAN–China Agreement, subject to the applicable conditions.

Before using either form, verify:

• HS Code
• Origin Criteria
• Tariff Rate
• Shipment Detail
• Document Detail

Do not assume that the presence of a form automatically means the shipment will qualify for 0% Duty.

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

How Do Incoterms Affect Import Taxes?

Incoterms do not determine tax rates.

However, they affect the cost structure and responsibilities of a transaction.

Examples:

EXW

The Supplier's price may not include:

• Origin Pickup
• Export Cost
• Freight
• Insurance

CIF

The Price may already include Cost, Insurance, and Freight under the agreed term.

DDP

The Seller assumes responsibility for Import Duty and Import Clearance under the applicable rule.

However, Customs still assesses taxes according to the laws of the importing country.

Therefore:

Incoterms do not change the tax rate.

They affect:

Who is responsible for the relevant cost under the Commercial Agreement.

Suggested Internal Link: What Are Incoterms? Understanding EXW, FOB, CIF, DAP, and DDP Before Importing or Exporting

What Is the Difference Between CIF and DDP Regarding Taxes?

A common misconception is that:

CIF = Destination Taxes Included

This is incorrect.

CIF

The Seller arranges:

• Freight
• Insurance, as required under the rule

to the Destination Port in terms of cost.

However, the Buyer generally remains responsible for:

• Import Clearance
• Import Duty
• VAT
• Destination Cost

depending on the transaction.

DDP

The Seller assumes responsibility for:

• Import Clearance
• Import Duty / Tax

under the Incoterms Rule.

Therefore, clearly distinguish between:

Freight Included

and

Duty Paid

Is VAT at 7% Calculated Only on the Product Price?

No.

For general imported goods, VAT is not calculated on the Product Price alone.

The VAT base includes components specified by law, such as:

• Customs Value
• Import Duty

as well as other relevant taxes depending on the type of goods.

Therefore, someone who calculates:

THB 100,000 of goods × 7% VAT = THB 7,000 in total tax

may underestimate the actual cost because Import Duty and other components have not been included.

Can Import VAT Be Claimed as Input Tax?

For businesses registered for VAT that meet the legal requirements, VAT paid on imports may be treated as input tax, provided the required documentation and conditions are satisfied.

However, claiming import VAT as input tax must comply with:

• The business's tax status
• Documentation requirements
• Import records
• VAT legislation

The accounting or tax team should review the actual transaction.

Import VAT should not be treated as a permanent cost in the same way for every business.

Are Goods Valued at Less Than THB 1,500 Really Tax-Free?

The statement:

“Goods valued at no more than THB 1,500 are tax-free”

should no longer be used as a general rule.

Low-value imports may qualify for customs duty exemptions under specified conditions.

However, VAT is a separate tax, with its own collection rules for Low-value Imported Goods.

Therefore:

Import Duty Exemption ≠ VAT Exemption

Prohibited goods, restricted goods, and products requiring permits are also subject to the relevant rules, even when their value is low.

As policies for low-value goods can change, buyers purchasing goods from overseas should check the latest rules before placing an order.

Do Online Purchases from Overseas Have to Pay Import Taxes?

Purchasing through a website or Marketplace does not exempt goods from Customs Regulation.

When goods enter the country, the following may need to be considered:

• Customs Value
• Import Duty
• VAT
• Import Restriction

under the applicable laws.

This applies whether the goods are purchased from a:

• Marketplace
• Brand Website
• Supplier
• Individual Seller

Import requirements still depend on the actual goods.

Are Personal Items Really Exempt from Import Taxes?

The phrase:

“Purchased for personal use”

does not automatically mean that the goods are exempt from duties and taxes.

Exemptions for travelers' accompanied baggage, personal effects, and other types of imports have specific rules and conditions.

The conditions for:

travelers entering the country

should not be applied to:

goods shipped by Courier or Freight

because these fall under different Customs Procedures.

Does 0% Import Duty Mean No Taxes at All?

No.

Even if the HS Code has an Import Duty rate of 0%, imported goods may still be subject to VAT.

Example:

Customs Value = THB 100,000

Import Duty = 0%

Preliminary VAT Base = THB 100,000

VAT at 7% =

THB 7,000

Therefore:

Duty Free does not necessarily mean Tax Free.

Which Types of Goods May Be Subject to Taxes in Addition to Import Duty and VAT?

Some product categories may be subject to additional specific taxes, such as:

• Certain types of beverages
• Certain types of motor vehicles
• Oil
• Certain luxury goods
• Goods governed by excise legislation

Calculations for these goods are more complex than for General Cargo.

Therefore, do not apply the formula:

CIF × Duty + VAT

to every type of goods without checking the applicable regulations.

What Is Anti-Dumping Duty?

Certain goods from certain countries may be subject to anti-dumping measures.

If the goods fall within the scope of such measures, Anti-dumping Duty may be imposed in addition to normal duties.

Before importing goods in potentially affected categories, check:

• HS Code
• Product Description
• Country of Origin
• Trade Remedy Measure

The normal tariff rate alone may not reflect the total tax burden.

How Do Safeguards and Trade Measures Affect Imports?

In addition to anti-dumping measures, other trade measures may apply, such as:

• Safeguard
• Countervailing Measure
• Quota
• Licensing

depending on the goods and country.

This is another reason why Import Cost should not be calculated solely using:

Product Price × Tax Percentage

without checking other applicable controls.

Are Import Taxes the Same as Customs Clearance Fees?

No.

Taxes and duties are amounts collected under the law.

A Customs Clearance Fee is a service charge that may be collected by a:

• Customs Broker
• Freight Forwarder
• Courier

for handling customs procedures.

Therefore, separate the costs into the following categories before analyzing Total Cost.

Government Tax / Duty

For example:

• Import Duty
• VAT

Service Charge

For example:

• Customs Brokerage
• Documentation
• Handling

Does International Freight Include Import Taxes?

Not always.

A Freight Quote can cover different scopes of service.

For example, a quote may include:

• Pickup
• Export Clearance
• Main Freight
• Delivery

but exclude:

• Import Duty
• VAT

Alternatively, the service may be arranged so that the Seller is responsible for taxes under the Agreement.

Check the following before Booking:

• Incoterms
• Service Scope
• Quote Remark

What Are Local Charges?

In addition to Freight and Tax, other charges may apply, such as:

• Terminal Handling
• Documentation Fee
• CFS Charge
• Delivery Order
• Customs Clearance
• Port Charge
• Warehouse
• Storage
• Demurrage
• Detention
• Delivery

These depend on the Mode and Shipment.

This is why simply asking:

“How much is the tax?”

is not enough to determine the total import cost.

What Is Landed Cost?

Landed Cost is the cost of bringing goods to the point specified by the business.

It may include:

• Product Cost
• Origin Cost
• Packing
• International Freight
• Insurance
• Import Duty
• VAT, depending on the business's cost-accounting perspective
• Customs Clearance
• Local Charge
• Delivery
• Other Applicable Costs

It is therefore a more suitable figure for evaluating:

Whether importing a product will be commercially worthwhile

than looking at the Purchase Price alone.

Example of a Basic Landed Cost Calculation

Assume:

Product Cost = THB 200,000

International Freight + Insurance included in Customs Value = THB 20,000

Customs Value =

THB 220,000

Assume the Duty Rate = 10%

Import Duty

220,000 × 10%

=

THB 22,000

VAT

(220,000 + 22,000) × 7%

=

THB 16,940

There are also Local Logistics Costs, assumed to be:

THB 10,000

The cash outflow associated with this Shipment may therefore consist of:

• Product / CIF-related Cost = THB 220,000
• Import Duty = THB 22,000
• VAT = THB 16,940
• Local Cost = THB 10,000

Total:

THB 268,940

However, for a VAT-registered business entitled to claim import VAT as input tax, the Accounting Cost analysis will differ from the Cash Outflow.

Why Should Import Taxes Be Calculated Before Ordering Goods?

A low Purchase Price does not necessarily mean that the goods will have a low Landed Cost.

Example:

Supplier A

Product price = THB 100 per unit

Duty = 20%

Supplier B

Product price = THB 110 per unit

but the goods qualify for an FTA that reduces Duty to 0%.

Supplier B may offer a better Total Landed Cost.

Therefore, Sourcing should consider the following together:

Product Cost + Logistics + Tax

How Do Import Taxes Affect Selling Price?

Before importing, calculate the cost per Unit after including all relevant expenses.

Example:

1,000 Units

Relevant Total Landed Cost = THB 300,000

Landed Cost per Unit =

THB 300

If the business considers only the Supplier price, which may be THB 200 per Unit, it will overestimate its Margin.

The Selling Price should therefore be based on a cost figure that reflects the actual Import Process.

How Can Import Taxes Be Reduced Legally?

Tax reduction should be based on benefits permitted by law, not on lowering the Invoice Value or selecting an HS Code that does not match the goods.

Approaches to review include:

Use an FTA

If the goods meet the Rules of Origin.

Verify the HS Code

To avoid paying more duty than the correct classification requires.

Check Exemptions or Incentives

For example, specific programs or conditions available under the law.

Plan the Supply Chain

Select the Country of Origin and Supplier with proper consideration of FTA eligibility.

Do not use methods such as:

• Declaring a value lower than the actual value
• Changing the product name
• Selecting a lower-duty tariff classification without a valid classification basis

These practices create Customs Compliance Risk.

Can Goods Be Declared at a Value Lower Than Their Actual Value?

They should not be.

Customs has rules for customs valuation and may examine documents such as:

• Commercial Invoice
• Purchase Order
• Payment
• Freight
• Insurance
• Contract

If the declared value cannot be substantiated, the value may be reassessed or the matter may be handled under the relevant laws.

The actual transaction should be used as the basis.

Are Samples and Free Gifts with No Value Subject to Import Taxes?

The terms:

Free Sample

or

Free of Charge

do not always mean that Customs Value = 0.

Even if the Buyer does not make a payment, Customs may still need to assess the value of the goods for customs procedures.

Therefore, the Invoice for samples should accurately describe the transaction.

For example:

Sample – Not for Resale

However, an appropriate value may still need to be declared for Customs, depending on the circumstances.

Are Replacement Goods Subject to Import Taxes?

Goods sent as replacements under a Warranty should not automatically be assumed to be tax-free.

Even if the Supplier sends them Free of Charge, the goods may still have a Customs Value.

Check the following before sending replacement goods:

• Transaction
• Original Import
• Warranty
• Customs Procedure
• Any potentially applicable Import Relief

Which Currency Exchange Rate Should Be Used?

When a Customs Declaration uses an Invoice in a foreign currency, the amount must be converted into Thai baht using the exchange rate applicable to customs procedures for the relevant period.

Do not automatically use:

• The rate shown by Google
• A credit card exchange rate
• The rate offered by the bank when a customer exchanges money

in place of the rate used by Customs.

An estimated exchange rate may be used for preliminary cost calculations, but the Final Declaration must comply with the relevant rules.

When Are Import Taxes Paid?

In general, applicable taxes and duties must be handled during Import Customs Clearance before the goods are released, subject to the relevant procedures and any applicable privileges.

The process may involve:

Cargo Arrival

↓

Customs Declaration

↓

Customs Assessment

↓

Duty / Tax Payment or Applicable Privilege

↓

Customs Release

↓

Delivery

The actual details vary by Mode and Customs Procedure.

Who Collects Taxes for Air Courier Shipments?

An International Courier may handle Import Clearance and collect Duty / Tax or other charges from the recipient, depending on the service and billing arrangement.

In some cases, the recipient may receive a message or Invoice from the Courier before Delivery.

The Sender should agree with the recipient in advance on who will be responsible for:

• Import Duty
• VAT
• Brokerage
• Destination Charge

This helps reduce the risk of the recipient refusing the Shipment.

Suggested Internal Link: What Is Air Courier? How Does It Differ from Air Cargo, and Which Shipments Is It Suitable For?

Who Pays Import Taxes for Sea Freight?

This depends on the Incoterms and Commercial Agreement.

For a typical import, the Importer in Thailand handles Customs Clearance through a Broker or Forwarder and pays Duty / Tax under the Declaration.

However, responsibility may differ if the transaction uses other terms or services.

The Contract and Incoterms must therefore be checked.

Is an Import Permit Required Before Paying Taxes?

Controlled goods may require a Permit or Approval before Customs Release.

Paying taxes does not automatically authorize the import of controlled goods.

Examples of product categories for which additional requirements should be checked include:

• Food
• Supplement
• Cosmetic
• Medical Device
• Electrical Product
• Chemical
• Agricultural Product
• Controlled Goods

Therefore, both of the following should be checked before importing:

Tax + Regulation

Checklist Before Calculating Import Taxes

At a minimum, prepare the following information:

• Product Name
• Product Description
• Material
• Composition, where applicable
• Function
• HS Code
• Country of Origin
• Supplier
• Product Value
• Currency
• Freight
• Insurance
• Incoterms
• Quantity
• FTA Eligibility
• Certificate / Proof of Origin
• Import Permit
• Special Tax / Trade Measure, where applicable

If this information is incomplete, the calculated tax figure should be treated as an Estimate only.

Common Mistakes When Calculating Import Taxes

• Calculating VAT on the product price alone
• Failing to include Freight when estimating Customs Value
• Using the Supplier's HS Code without verification
• Assuming that 0% Import Duty means no VAT is payable
• Assuming that CIF includes Duty
• Assuming that DAP includes Import Tax
• Assuming that low-value goods are exempt from all types of tax
• Failing to check FTA eligibility
• Having a C/O without checking the Rules of Origin
• Failing to check Anti-dumping measures
• Failing to check Permit requirements
• Using the wrong Exchange Rate
• Excluding Local Charges from Landed Cost
• Estimating costs based only on the Product Price shown on a Marketplace

Frequently Asked Questions About Import Taxes (FAQ)

Are Import Taxes Calculated Only on the Product Price?

No. The calculation must consider Customs Value, which involves the product value, Freight, and Insurance under the applicable rules.

How Is Import Duty Calculated?

For goods assessed on an ad valorem basis, the basic principle is Customs Value × the duty rate for the HS Code. Some goods may be subject to specific calculation methods.

What Is Import VAT Calculated On?

For general goods, the basic principle is that VAT is calculated on Customs Value plus Import Duty and other relevant tax components, where applicable.

What Is the Current Import VAT Rate?

The general VAT rate currently in use is 7%. However, tax rates can change, so the latest information should be checked before the actual Shipment.

Is VAT Payable When Duty Is 0%?

VAT generally still needs to be considered even when Import Duty is 0%, unless an exemption under the law applies.

Are Goods Valued at No More Than THB 1,500 Really Tax-Free?

This should not be assumed. Low-value goods may qualify for an Import Duty exemption under certain conditions, but VAT has separate rules, and policies can change.

Does an FTA Eliminate All Taxes?

No. An FTA may reduce or eliminate Import Duty depending on the tariff classification and Rules of Origin, but it does not necessarily eliminate VAT and other charges.

Does CIF Include Import Taxes?

No. CIF under Incoterms does not mean that Import Duty and VAT are already included.

Are Import Taxes the Same as Shipping Charges?

No. Import taxes are liabilities imposed under the law, while Customs Clearance or Shipping fees are service charges from service providers.

How Can Import Taxes Be Estimated Before Importing?

Identify the HS Code, Country of Origin, Customs Value, FTA eligibility, and applicable regulations first. Then calculate an Estimate using the current tariff.

Import and Customs Clearance Services with CPL INTER

CPL INTER provides international freight services, including:

• Air Courier
• Air Cargo
• Sea Freight
• Road Freight
• Cross-border Transportation

Related services include:

• Shipping Documents
• Packing
• Warehousing
• Customs Clearance
• Delivery

depending on the Service Scope for each Shipment.

To estimate the cost of importing goods, prepare the following information:

• Product name and photos
• Product Specification
• Material / Composition
• Product quantity
• Product value
• HS Code, if available
• Country of Origin
• Country of dispatch
• Freight Mode
• Incoterms
• Any available Certificate / Proof of Origin

The CPL INTER team can help review Logistics information and coordinate customs procedures before Booking.

Duty rates, taxes, FTA benefits, and product requirements may be updated. Always verify the rules in force on the actual import date before confirming costs.

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

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