Jewelry import department| jewelryfactorytour

IMPORT DEPARTMENT

Importing materials to produce as a finished good and export to the shops around the world. Which following these processes. An employee who takes this responsibility must has to be very careful and be punctual which can finish the process within limit time, which can bring the materials to produce on schedule time and can reduce impacts from delay work in other departments which take a responsible together. Moreover, he/she must have experience and knowledge about laws and benefits from importing, related documents, types of importing process, tax and vat calculating, and freight in each continent zone of origin country

WORKING PROCESS

The employee will receive raw material detail and freight for importing documents from a purchasing department to check its details' accuracy which called “Pre-alert” that include Invoice & packing list form for specifying about materials' details and freight, and air waybill(AWB) form which is an air cargo certificate from shippers.
Examination the invoice & packing list and air waybill
1. At first, the document examiner should check the details' accuracy from the invoice & packing list and air waybill as follow
  1. Tracking number
  2. Raw materials' amount
  3. The product value
  4. Name of products
2. Inform to the BOI department in the office for BOI privileges registration in ICOS of Thai customs.

3. Document translation and calculation for the shippers

1. After the examiner in the import department has finished the document examination process, the next step is translation the details of imported products from invoice & packing list form that receive from the shippers and also specify the tax, vat, BOI number, and the certificate of value added tax registration 01.5. of each product, these called Good Description.

2. Calculation of import duty: Calculate the expenses which occurred in that shipment and related to the delivery terms(CIF and Ex-work) include insurance, VAT, rate duty, freight and exchange rate etc.

Formula:

Freight charge from AWB = Weight(Kg.) × Freight zone

CIF = Cost + Insurance + Freight + Other(If any)

Insurance = Cost + Ex work + Other(If any) × 1%

Ex-work = Cost + Other × 3%

4. Summarize the document that must be sent to the shippers through outlook email.

Air waybill
Invoice & packing list form
Good description and BOI
Calculation of import duty

5. After sending the documents back to the shippers, the examiner has to wait for the import declaration draft from the shipper and also check its detail accuracy before the shippers send to the Thai customs department.

This process must recheck carefully to reduce the mistakes as less as possible to avoid the custom penalty. The import department must notify all mistakes of the details to the shippers as fast as possible.

6. If any mistakes have all clear after rechecking carefully, The examiner will send the latest draft (the correct one) to the shippers and confirm it.

7. Sending all documents to the accounting department

When the shipment has arrived at the factory, the shippers will give the real shipping documents to the examiner in the import department.
The examiner will inform the shipment to related departments.
The examiner will arrange the documents that are kept and received from the shippers together and send to the accounting department to make the shipment payment.

When all processes are completed, all remaining documents will be collected as an evidence for 5 years for examination of Thai customs at the end of the year.

RELATED DOCUMENTS

Invoice & packing list
1. Invoice: A bill or trading information issued by the seller and the buyer related to the sale of goods and services. It will specify the repayment conditions in order for the debtor to pay the money within the specified conditions. It is a document that is made between the buyer and the seller, allowing the buyer to come to buy products and services from the seller in order to be able to bring these products and services into income first and then bring money to pay for goods and services later with the conditions specified for the buyer to pay the debt within the specified conditions.
2. Packing list or P/L: A documents that specify the product details that the exporters or sellers have prepared to show the packaging details of the exported and imported products, including the weight and the overall volume of each item. The shippers should keep this document well because if the document is lost, it will be difficult to identify the product until it becomes complicated and waste time.

2. Air waybill: It is an air cargo certificate issued by the carrier or airline, which is the agent responsible for the risk of the goods during the transit to the service user as evidence of the use of air cargo services. There is a third party product recipient that makes the contract of transportation complete. This contract covers from the pick-up point at the airport to the point of delivery of all types of products.

3. Declaration: It is a printed form that the Customs Department requires importers and exporters to submit to the Thai Customs Department for both importing and exporting products which are classified into 9 categories as follows:

1. Thai Customs. 99/1 (กศก. 99/1): Import declaration showing excise tax and VAT, used for importing all types of general goods that the Customs Department does not require to use other types of transactions with important information such as Taxation, VAT, country of origin, destination country, product value in both Thai currency and country of origin, number of products, product name, and transportation cost according to type such as CIF, FOB and Ex-work. (It is the declaration that the company always use.)

2. Thai Customs. 102(กศก. 102): Declaration showing excise tax and VAT, used for importing aircraft products or other formalities prescribed by the Customs for imported goods in a specific manner such as importing live animals

3. Thai Customs. 103(กศก. 103): Request for attenuation to receive goods / deliver first, Used for importing or exporting goods before completing the formalities as prescribed by the Customs Department.

4. A.T.A. Carnet: Declaration for temporary import or export, Used for importing or exporting various types of temporary products as specified in the pact.

5. JDA (Joint Development Area): Declaration for the Thai-Malaysia Joint Development Area, used for importing goods in the Thai-Malaysia Joint Development Area

6. Attachment 9 sets for loading cargo

7. Declaration of Border Transactions

8. Declaration for special products for cars and motorcycles, temporary import or export.

9. Declaration for special products for cruises and sports that are temporarily imported or exported.

4. Freight zone: It is in the customs process about express consignment. In the case of the invoice & packing list form does not have a shipping fee of or there is no evidence of payment of shipping. The examiner of the import department will use the average aircraft freight rate according to the zone that the Customs Department announced to use for express consignment products as a basis for determining the customs value.

RELATED PRIVILEGES AND LAWS

Harmonized System Code or HS: an internationally standardized system of names and numbers to classify traded products. It came into effect in 1988 and has since been developed and maintained by the World Customs Organization (WCO) (formerly the Customs Co-operation Council), an independent intergovernmental organization based in Brussels, Belgium, with over 200 member countries. The HS is organized into 21 sections, which are subdivided into 97 chapters
The Board of Investment of Thailand or BOI: The Office of the Board of Investment has granted tax incentives to entrepreneurs in the investment promotion zone, the Customs Department, which is responsible for overseeing and responsible for state taxation and for the promotion of exports to entrepreneurs, therefore, regulations for importing operations must be defined Machinery and raw materials of operators approved by the Board of Investment to receive various privileges on import duties. Including supervising, facilitating and giving advice to entrepreneurs in respect of tax benefits.
The certificate of value added tax registration 01.5: Entrepreneurs will be exempt from VAT that imports or sells gems and precious metals that have not yet been made into the products' body or jewelry for use in the manufacture that is jewelry. Excluded products include:
1. Gems: Gemstone, Ruby, Emerald, Topaz, Garnet, Opal, Onyx, Zircon, Lapis Lazuli, Jade, Pearls and Gems with similar characteristics Including artificial objects Or newly made
2. Precious metals: platinum, white gold, silver, unique palladium that has not been assembled

RELATED PRIVILEGES AND LAWS

CIF (Cost Insurance Freight): It is one of the Incoterms that The seller is obliged to provide a ship at the port of origin to transport goods to the destination city and the seller is responsible for the cost of the boat. The risk of the product or the burden of expenses that may occur to the goods while shipping from the port of origin to the destination port. Therefore, in order to prevent risks, the seller will arrange insurance during shipping. When the product is delivered to the destination country, the risk will change from the seller to the buyer from the moment the product is crossed over the ship's rail. The recipient must go to clear the goods at the port/airport or hire a shipping agent instead.

2. Ex-work: Terms of delivery of goods or conditions of delivery of goods that the seller will end the burden of delivering the product when the seller has prepared the product ready for delivery to the buyer at the place of the seller itself. The buyer will be responsible for the costs of transporting the goods to the buyer's own warehouse.

3. Express consignment: Those registered by the Customs Department shall be responsible for importing or exporting the Kingdom of Thailand by providing services to depositors in the form of DOOR TO DOOR and having to perform customs procedures as prescribed by the Customs instead of importers or exporters, express cargo operators include FedEx, UPS, DHL, TNT. Freight charges, goods that used to determine the customs value in customs formalities procedures for urgent goods as following these order:

Use the shipping cost as shown in the invoice or evidence of payment of the said freight.
In the case of Invoice, there is no transportation fee of, or there is no evidence of payment of freight, use the average freight rate of the aircraft in the zone announced by the Customs Department for urgent use