Shipping from Thailand to India: Everything you need to know

Thailand and India have a long-standing relationship built on cultural exchange and economic cooperation. This partnership is deepening as trade between the two nations flourishes. India's rapidly growing economy presents an incredible opportunity for businesses in Thailand looking to expand their reach into a vast and dynamic market. Whether you're in the food industry, fashion, electronics, or any other sector, understanding the intricacies of shipping from Thailand to India can unlock significant potential for your business.

Navigating Indian customs

Navigating Indian customs regulations is crucial for seamless shipping from Thailand to India. To help you, we give you a guide on the essential documents for international shipping and customs duties and taxes:

Step 1: Required documents

Before you export to India, you should prepare the following documents¹:

• Bill of Exchange: This is a written order used in international trade where one party is bound to pay another party to pay a specific amount on a specific date. This agreement helps ensure you get paid for your goods.
• Commercial invoice: This document details the transaction with information such as:
  • A description of the goods being shipped (including HS Codes)
  • The quantity and unit price of each item
  • The total value of the shipment
  • Terms of sale (Incoterms)
  • Information about the buyer and seller
  • Shipping information (weight, dimensions, etc.)
• Packing list: This goes hand-in-hand with the commercial invoice. It is a detailed list of the contents of each package in the shipment. It includes:
  • Number of packages
  • Type of packaging (boxes, crates, etc.)
  • Marks and numbers on the packages
  • Weight and dimensions of each package
  • A detailed description of the goods in each package
• Airway bill: If shipping by air, the airway bill is a contract between you and the airline. It serves as a receipt for the goods and provides details about the shipment route and destination.
• India has strict customs procedures that can be time-consuming and complex. Shippers must provide detailed documentation such as POA (Power of Attorney) and invoices with descriptions, value, and quantity.
• Shippers must register with Know Your Customer (KYC). KYC is a mandatory procedure where entities are required to submit documents to verify the identity and address of the receiver. Whether an individual is sending a shipment to India or a company is sending bulk products, KYC documents must be submitted to the logistics carrier.

Since KYC documents should be provided to the customs officials during the import clearance process, the receiver needs to submit them to the logistics carrier before the shipment arrives. If the documents are not submitted at that time, it will not only result in the process of clearance being delayed but can even incur penalties in some cases.

The KYC documents the receiver must submit can be categorized under two groups: proof of identity and proof of address. You can find out more here.

Step 2: Calculating Duties and Taxes

When exporting goods to India, understanding how customs duties and taxes are calculated is essential to ensure compliance and anticipate costs accurately. According to Invest in India, these are the components of tariffs and duties for customs clearance²:

a. Basic Customs Duty (BCD)

This is calculated on the Assessment Value of Goods that landed in India. BCD rates can range from 0% to 100% and depends on the Harmonised System of Nomenclature (HSN) code of the product and the country of import. Goods are classified according to HSN codes, an international standard that determines the applicable duty rates. 

b. Additional duties and surcharges

Aside from BCD, your goods may also be subject to other duties and surcharges:

• Social Welfare Surcharge (SWS): A 10% surcharge on the BCD value, applied to all goods unless specifically exempted. 
• Integrated Goods and Services Tax (IGST): Replacing previous indirect taxes, IGST is applied to the landed cost of goods to level the playing field for domestic manufacturers. With slabs of 0%, 5%, 12%, 18%, and 28%, IGST paid on imports can be offset against GST liabilities within India, supporting businesses in managing overall tax obligations.
• Compensation Cess: This tax applies only to specific products like luxury or "sin" goods (e.g., SUVs, tobacco), adding an additional cost to imported goods in these categories.

c. Country of Origin and Preferential Rates

• Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs): India has numerous FTAs and PTAs with countries, including the members of the ASEAN Bloc, such as Thailand. These agreements often provide reduced BCD rates, creating incentives for importing from partner countries. 
• Anti-Dumping and Safeguard Duties: To protect domestic industries, India may impose additional anti-dumping duties or safeguard duties on imports from specific countries, particularly when certain goods are available in ample quantity domestically.

d. De Minimis Values

India has a de minimis value threshold, a minimum value under which certain goods can be imported without incurring customs duties. This threshold aims to streamline customs clearance and reduce the burden of minor imports on the customs system. However, for goods valued above this limit, import duties and taxes will apply based on the product type and value.

Free trade agreements between Thailand and India

While Thailand does not currently hold an exclusive bilateral free trade agreement with India, Thai businesses can still benefit significantly through the ASEAN-India Free Trade Agreement (AIFTA). This agreement, signed on November 14, extends preferential trade terms between ASEAN member countries and India, providing a strategic advantage for Thai exporters.

Under AIFTA, Thailand benefits from reduced import duties on a substantial 76.4% of goods exported to India. This arrangement allows Thai businesses to offer more competitive pricing within the Indian market by leveraging these duty reductions³. 

Another potential avenue for enhanced trade is the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Free Trade Area. Members of this organization, aside from Thailand and India, include Bangladesh, Bhutan, Myanmar, Nepal, and Sri Lanka. As stipulated in the Bangkok Declaration of 1997, the major objective of BIMSTEC is to create an enabling environment for rapid economic development in the region. While negotiations are still ongoing, it promises to promote and facilitate the trade of goods and services, investments, and broader economic cooperation between member states⁴. 

Expert tips on how to package and label export goods for India

When shipping internationally to a bustling market like India, ensuring the safe and timely arrival of goods is paramount. To help you, consider these tips on packaging and labeling your goods.

Packaging tips for secure shipping to India

Packaging plays a critical role in containing, protecting, and preserving products, as well as enhancing their handling and presentation. To guide you through choosing the appropriate packaging for your items for shipping, we give you tips to consider:

• Choose durable packaging materials: Select high-quality corrugated boxes for optimal strength, as these provide excellent protection against rough handling. For particularly fragile items, consider using double-walled boxes that offer extra reinforcement.
• Use adequate cushioning: Fragile items should be surrounded by bubble wrap, foam inserts, or packing peanuts to prevent shifting and damage during transit. Place these materials around each item and fill any empty spaces inside the box.
• Waterproofing for extra protection: India’s varied climate can include rainy seasons, so waterproofing your packages with sealed plastic bags or wraps is recommended. This helps prevent water damage, especially for items like electronics or paper-based products.
• Securely seal boxes: Reinforce all seams with strong, high-quality packing tape to ensure the box stays intact. Apply an extra layer of tape across the top and bottom seams, which are most vulnerable to splitting. For heavy items, use reinforced or strapping tape to give added security and prevent accidental opening.

Labeling tips for exporting to India

Proper labeling is essential for safe and compliant export, providing information critical to handling and regulatory standards. You should follow all relevant national and international labeling guidelines, including language requirements and symbols. Labeling should be clear, accurate, and primarily in English, with the country of origin clearly indicated.

Labels typically include:

• Shipper's mark
• Country of origin
• Weight (in pounds and kilograms)
• Quantity and package dimensions (inches and centimeters)
• Handling marks (standard international symbols)
• Cautionary marks (e.g., “This Side Up”)
• Port of entry
• Hazard labels, as required

Choose DHL Express for your deliveries to India

Shipping to India presents exciting opportunities, but navigating the logistics can be complex. Partnering with a trusted provider like DHL Express can make a world of difference in ensuring seamless and efficient deliveries. With numerous branches across the globe, you can guarantee that we have the tools and expertise to ensure your items for export arrive safely and on time. 

We understand the unique needs of Thai businesses exporting to India. That's why we offer tailored shipping solutions that support growth in new markets. Our experience with cross-border shipping provides a hassle-free experience so that you can focus on your core business activities.

Start delivering your goods to India with confidence by choosing DHL Express as your logistics partner. Open a business account with DHL Express today to unlock tailored shipping solutions, expert support, and access to a growing international market.