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Breaking into Thailand with coffee equipment? How to crack the code without certifications and under high tariffs

Foreign Trade_International Trade-21

This article focuses on foreign trade import-export services, detailing document processing, logistics arrangements, analyzing advantages and procedures in Russian and Southeast Asian markets, discussing trade conditions, and providing practical guidance on certification assistance.

Coffee bean processing equipment refers to the specialized machinery used for a series of treatments such as roasting, grinding, screening, and packaging of coffee beans, including roasters, grinders, screeners, and packaging machines. With the continuous growth of the global coffee consumption market, demand for coffee bean processing equipment is steadily rising, particularly in Asia, where coffee culture is becoming increasingly widespread.

However, exporting such specialized equipment to international markets like Thailand involves intricate trade procedures, regulatory requirements, and capital management. Many high-quality equipment manufacturers, despite their outstanding products, struggle to directly enter overseas markets due to a lack of import-export qualifications and international trade experience. As a professional import-export trade service provider, Zongdaifu exists precisely to address these fundamental issues. We not only provide logistics and customs clearance services but, more importantly, solve our clients'Trade QualificationandCapital flowOvercoming challenges to help businesses expand smoothly into international markets.

Market Status and Trends

As a key coffee-consuming market in Southeast Asia, Thailand has recently shown the following characteristics in its demand for coffee bean processing equipment:

  1. The Rise of the Specialty Coffee Market: The growing demand for specialty coffee among Thailand's urban middle class is driving the need for small- to medium-scale, high-precision coffee processing equipment.
  2. Development of the local coffee industry: The expansion of coffee-growing areas in northern Thailand has prompted local coffee-processing companies to seek modern equipment to boost capacity and quality.
  3. Expansion of foreign coffee brands: The expansion of international coffee chains in Thailand has driven demand for standardized, large-scale production equipment.

Common pain points and considerations for companies entering the Thai market include:

  1. Technical Standard Discrepancies: Thailand imposes specific technical standards and safety requirements on imported machinery and equipment; products that do not meet these standards will be denied entry.
  2. complex authentication process: Electrical equipment must obtain certification from the Thai Industrial Standards Institute (TISI), a process that is cumbersome and time-consuming.
  3. Tariff and Tax Policies: Different types of coffee processing equipment are subject to varying tariff rates; accurate classification is essential for cost optimization.
  4. After-sales service requirements: The Thai market has high requirements for equipment installation, commissioning, and after-sales service; the absence of local support will negatively impact market acceptance.

Main Process/Steps

The main process for exporting coffee bean processing equipment to Thailand includes:

  1. Preliminary Preparation and Qualification Review
    • Confirm whether the product complies with Thailand's technical standards and safety requirements
    • Prepare product technical documentation, test reports, and certification materials
    • Sign an agency agreement to clarify that the general agent will use our qualifications to act as the export agent and collect foreign exchange.
  2. Product CertificationCompliant
    • Apply for the necessary international certifications (such as CE, UL, etc.)
    • Apply for certification from the Thai Industrial Standards Institute (TISI)
    • Prepare the FORM E Certificate of Origin to enjoy the tariff preferences under the ASEAN Free Trade Area
  3. Production and quality control
    • Customized production in accordance with the requirements of the Thai market
    • Implement a rigorous quality control (QC) process, including pre-shipment inspection.
    • Prepare detailed product specifications and multilingual operation manuals
  4. International logisticsand transportation
    • Choose the appropriate mode of transportation (ocean freight or air freight)
    • Arrange professional packaging and reinforcement to prevent damage during transit
    • Arrange transportation insurance to cover risks throughout the entire journey
  5. Customs declaration and clearance
    • Prepare complete export customs declaration documents
    • Handle Thailand import customs clearance procedures, including paying customs duties and value-added tax.
    • Coordinate possible inspection procedures with Thai Customs
  6. Foreign exchange settlement andExport tax refund
    • Collect USD payments from overseas buyers through the comprehensive agency service qualification
    • HandledExport tax refundProcedures to ensure that the client receives the full tax refund amount
    • Provide clear settlement reports and tax documents

Cost breakdown

The main cost items for exporting coffee bean processing equipment to Thailand are as follows:

Cost Items Proportion of total cost Comprehensive Agency Service Optimization Plan
Product Cost (FOB) 60-70% By leveraging bulk purchasing and supplier management, we help our clients secure the best ex-factory prices.
Certification/Testing Fee 5-8% Leverage our long-standing relationships with certification bodies to streamline the process and reduce certification costs
International shipping cost and insurance 8-12% By leveraging consolidated shipping and long-term logistics partners, we secure preferential freight rates
Tariffs and Taxes 10-15% With our 100% compliant FORM E certificate processing, this tariff can be reduced to 0%.
Port charges 2-3% Optimize port operation procedures to reduce unnecessary demurrage and storage charges
Agent Service Fee 3-5% Provide one-stop service to spare clients the extra costs that come from dealing with multiple points of contact.

Risks/Difficulties and the Comprehensive Agency Service Solutions

During the process of exporting coffee bean processing equipment to Thailand, common risks and the comprehensive agency service’s solutions include:

  1. Risk of customs delay
    • Potential causes: Incomplete documentation, incorrect product classification, non-compliance with Thai technical standards
    • Comprehensive Agency Services Solutions: Our professional team pre-reviews all documents to ensure accurate product classification; through pre-inspection services, we guarantee compliance with Thai standards; leveraging strong relationships with Thai Customs, we expedite the clearance process
  2. Authentication Issue Risk
    • Potential causes: Unfamiliarity with Thai certification requirements, differences in testing standards, and long certification cycles
    • Comprehensive Agency Services Solutions: Provide multilingual certification consulting to ensure one-time pass; collaborate with accredited third-party laboratories for advance pre-testing; leverage our certification green channel to shorten the certification cycle by over 30%.
  3. Risk of Payment
    • Potential causes: The client lacks import-export rights and cannot directly receive foreign exchange, faces exchange-rate fluctuations, and experiences payment delays
    • Comprehensive Agency Services Solutions: Acting as an agent, we use our own qualifications to collect USD payments, resolving the issue of clients lacking import/export rights; we provide flexible exchange-rate risk management tools; we establish a secure escrow mechanism to ensure transaction safety
  4. Cargo damage risks
    • Potential causes: Long-distance transport jolts, improper packaging, and mishandling during loading and unloading
    • Comprehensive Agency Services Solutions: Provide professional packaging design and reinforcement solutions; arrange experienced logistics partners; offer end-to-end cargo tracking and insurance services to ensure safe delivery.

Suitable types of enterprises

Our coffee bean processing equipment export service is especially suited for the following types of enterprises:

  • Coffee equipment manufacturer: Equipment manufacturers that have high-quality products but lack international trade experience and export qualifications.
  • A trading company without import and export rights: Traders who have overseas customer resources but are unable to handle export and tax rebate procedures directly.
  • Startup coffee equipment brand: Innovative companies with limited resources looking to expand into the Thai market.
  • Diversified machinery manufacturer: Enterprises that export coffee equipment as a new product line.
  • R&D-focused equipment manufacturer: Enterprises that wish to focus on product R&D and design while outsourcing trade and logistics operations.

in conclusion

The booming Thai coffee market presents valuable export opportunities for Chinese coffee-bean processing equipment manufacturers. Yet successfully tapping this market demands not only top-quality products but also professional trade-qualification management, streamlined capital-flow handling, and localized market know-how.

The core value of integrated agency services lies not only in providing basic services such as logistics and customs clearance, but more importantly in addressing the most fundamental needs of the client.Trade QualificationandCapital flowProblem. Through our agency service, companies without import-export rights can smoothly collect USD payments and obtain the full export tax rebate; with our professional team, complex market access and certification processes become simple and efficient.

Choosing Zongdai Service means choosing a professional partner who truly understands your needs and tackles the root of the problem. Let’s join hands to open up the Thai coffee-equipment market together and realize your strategic goals for international expansion.

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