How to Calculate Import Tax When Ordering from Abroad - Complete Guide 2025

In an era where we can do business without borders, ordering goods from abroad is a crucial opportunity to increase competitiveness. Whether importing machinery, raw materials, or finished products to expand your business, what many people overlook is the calculation of import taxes and hidden costs that can directly impact business expenses. Understanding the correct tax structure and how to properly calculate import tax when ordering from abroad will help reduce unnecessary costs and effectively increase business profit margins.

Purchasing goods from abroad is an important strategy for business expansion and increasing organizational competitiveness. Here are the business advantages that entrepreneurs will gain from importing goods and raw materials from overseas:

1. Reduce Production Costs by Finding Raw Materials and Products at Lower Prices Than Domestic

Importing raw materials or goods from abroad can help reduce production costs, as some countries have lower production costs, such as cheaper labor or energy expenses, resulting in imported goods or raw materials being cheaper than domestic production.

2. Access to New Technologies and Innovations Not Available in Thailand

Importing technology or products that cannot be manufactured domestically helps businesses access new innovations that increase production efficiency, enabling the development of modern products and services that meet market demands, leading to better cost management.

3. Increase Business Competitiveness

Importing high-quality goods or raw materials from abroad helps improve domestic product quality, creating distinctive features for the business, impressing customers, and enabling better competition in both domestic and international markets.

4. Expand Markets for Business Growth

Importing goods or raw materials from abroad for further development can help businesses expand to international markets more easily. Moreover, accessing products in demand in foreign markets will drive better business growth.

To manage costs efficiently for business growth and reduce the risk of legal problems, you must thoroughly understand how to calculate taxes when ordering from abroad. The tax calculation rates you should know include:

1. Import Duty

Import duty is a tax collected by the Customs Department on all types of goods imported into Thailand to protect domestic industries and generate government revenue. It uses the CIF price, which consists of Cost (product price) + Insurance* (insurance fee) + Freight (shipping cost) as the tax calculation base. The calculation uses this formula:

Import Duty = CIF × Import Duty Rate

*If there is no insurance fee, calculate 1% of the product price as insurance instead

Import duty rates vary depending on the product category. For example:

• • Cars: 80%
  • Car parts: 30%
  • Machinery: 0% - 10%
  • Electronic equipment: 0% - 20% (depending on type)
  • Bags: 20%
  • Cosmetics: 30%
  • Dietary supplements: 5% - 30%
  • Medical equipment: 0% - 10%
  • Clothing: 30%

However, some products may receive benefits such as tax exemptions or reduced rates according to FTA agreements or Board of Investment (BOI) promotion programs. You can study more information at the Customs Department's import regulations and tariff search, and search for the tariff code to check the actual import duty rate from the HS Code through the e-Tracking system at the Customs Clearance Status Tracking System.

2. Value Added Tax (VAT)

Value Added Tax (VAT) is a tax collected on the value of imported goods, calculated from the product price including CIF and the import duty already paid. Thailand collects VAT at a rate of 7% for most goods. It can be calculated using this simple formula:

VAT = (CIF + Import Duty) × 7%

3. Excise Tax and Interior Tax

Excise tax refers to tax collected on luxury goods such as alcoholic beverages, tobacco, and fuel. Excise tax rates depend on the product category. Interior tax is a tax collected on certain products when crossing the border into Thailand. You can study calculation information on the Excise Department website.

4. Customs Fees and Other Service Charges

Customs fees are fees that must be paid for customs operations, such as goods inspection or import procedures, and there may be other service charges such as tax clearance services or additional warehouse storage fees, depending on the conditions of the shipping company you use.

Example calculation of import duty rate for car parts priced at 5,000 baht, assuming insurance at 1% of product price, making insurance 50 baht, shipping cost 1,500 baht, and car parts import duty rate at 30%. The calculation is as follows:

• CIF Price = 5,000 + 50 + 1,500 = 6,550 baht
• Import Duty = 6,550 × 30% = 1,965 baht
• VAT = (6,550 + 1,965) × 7% = 596.05 baht
• Total tax payable = 1,965 + 596.05 = 2,561.05 baht

Besides knowing how to calculate import tax when ordering from abroad, updating import trends is also an important factor in creating business success. In 2025, products and raw materials worth special attention include:

1. Technology Products

Importing technology products such as AI, IoT, and smart devices will help your business adapt in the digital age while reducing operational costs and increasing production efficiency, enabling you to beat competitors in a rapidly changing market.

2. Raw Materials and Industrial Machinery

Importing raw materials and industrial machinery, whether heavy machinery or automated production equipment, is crucial for expanding production capacity in terms of both quality and quantity, helping better meet market demands.

3. Sustainability Products

Choosing to import environmentally friendly products or recyclable packaging is an investment that not only meets current customer demands for environmental consciousness but also helps create a good brand image and reduce long-term costs.

Choosing the right shipping company is an important step in expanding your business and successfully importing goods. Importantly, it will help reduce costs, increase flexibility, and provide correct advice on how to calculate import tax when ordering from abroad. Simple selection guidelines include:

1. Comprehensive Services: From warehouse storage to cross-border transportation will help business operations run smoothly and reduce the complexity of managing multiple parties.
2. Customs Expertise: Ability to help calculate import duties, clear taxes, and handle various documents correctly, smoothing the import-export process and reducing legal risks.
3. Systematic Cargo Tracking Technology: Provides accurate real-time information, allowing precise monitoring of cargo status throughout the transportation route, increasing delivery confidence.
4. Comprehensive Resources: Both in terms of large warehouse space supporting all types of goods and personnel with knowledge, expertise, and high experience, including efficient management systems, enabling storage according to business needs.

Choosing an expert logistics partner is a crucial factor that helps businesses reduce import tax and transportation costs efficiently. SCGJWD is an export shipping company providing comprehensive logistics services covering multiple countries, with large warehouse facilities that can accommodate various types of goods, helping the import process run smoothly and reducing customs document complexity. With a continuous transportation network and accurate cargo tracking technology, SCGJWD import-export company is ready to be a partner that helps your business grow sustainably.

Contact Us for Service Details

Phone: 02-710-4000 / 02-586-1979
LINE: @SCGJWD

Reference : Customs Duty Rates in Thailand. https://www.tmathaigroup.com/blogeng/index.php/post/31.html