Drawback for re-export basically consists of the request for a refund of Customs duties paid on imported goods -- on the basis of a later exportation of the goods. Thai Customs duty drawback for re-export enables exporters of goods which were originally imported to obtain refunds for import duties paid, subject to the criteria and conditions established by Customs.
LEGISLATION AND ELIGIBLE EXPORTS
Section 19 of the Customs Act B.E. 2469 as amended by the Customs Act (No. 9) B.E. 2482 stipulates that :
“If any goods, having been proved to the satisfaction of the Director-General or the person designated by him to be those imported and on which duty has been paid, are re-exported to a foreign port or as stores for use on board a ship proceeding to a foreign port, nine-tenth or the excess of one thousand Bath of the duty already paid, calculated according to each export entry, whichever is higher, shall be repaid as drawback, subject to the following conditions:
(a) while in the Kingdom, the goods have not been used in any way except for the purpose of re-exportation and have not changed in form or character;
(b) the goods are re-exported through a port or place for the exportation of goods on drawback;
(c) the goods are re-exported in one year from the date of importation; and
(d) a claim for drawback must be made within six months from the date of re-exportation of the goods.
The Director-General has the power to issue regulations with respect to identification and re-exportation of the goods, preparation and production of documents, calculation of drawback allowable and other procedures concerning claim for this type of drawback.”
claims for Duty Drawback
To be eligible for duty drawback under this scheme, the goods shall be in the same condition as when they are imported. If it is essential to change packaging, containers, product number or trademark, a request for such changes must be submitted to Customs for consideration as well.
In addition, an exporter is required to provide Customs samples (if any) of such re-exported goods as textile, paper and plastic. Such samples are sent with the manifest and/or other documents attached to the Export Declaration. In addition, the exporter must certify that such items are samples of the exports.
The exporter then submits a request with all supporting document and states the reason for re-exported with duty drawback under Section 19. The re-export procedures under this scheme are divided into :
1. Re-Exported Goods under Customs Custody: If goods are to be re-exported while they remain in the custody of Customs, an exporter is required to submit, during the time of importation, an Import Declaration together with an Export Declaration to Customs at the port or place of entry, and requests for an approval to process re-export procedures before the release of imports.
The import duty collected on these particular imports is arranged as follows:
- If the goods are exported at the same port or place to where the goods are imported i.e. the goods are imported and re-exported at the Bangkok Port, the exporter pays only one-tenth of the applicable import duties but shall not exceed 1,000 baht. Samples include:
(a) If the applicable import duties are 9,500 baht, only 950 baht of duties should be paid; or
(b) If the applicable import duties are more than 10,000 baht i.e. 15,000 baht, the exporter shall pay only 1,000 baht, one-tenth of the applicable import duties, as 1,500 baht is the larger amount than that stipulated in the law.
- If an exporter exports goods at the different port or place to where the goods were imported (for example, the goods are imported at the Bangkok Port but re-exported at the Lam Cha-bang Port), the exporter first pays the full amount of import duties and, upon re-export, claims for nine-tenths of the duty paid or an amount exceeding 1,000 baht when the goods are re-exported.
The reason for the above regulation is that when goods are re-exported at the port or place different from when they were imported, it is difficult for officer to control and check whether such goods are actually exported.
However, if Customs procedures are processed by under a licensed Customs broker scheme, only one-tenth of the applicable duties or amount not exceeding 1,000 baht shall be paid.
- If the goods remain in Customs custody more than 2 months and 15 days and so become the overtime goods, the exporter must pays the full amount of the applicable duties and claim for duty drawback at a later stage, unless the exporter are granted to pays only one-tenth of the applicable import duties but shall not exceed 1,000 baht as mentioned above.
2. Re-Exported Goods NOT under Customs Custody: To re-export the goods which have already been released from Customs custody, an exporter is required to submit an Export Declaration together with a request for re-export at the port or place of exit. The goods can be re-exported and the duty drawback can be claimed only when the approval for re-export is granted by Customs.