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International shipping guide: From Thailand to the United States of America
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The United States of America (USA) holds immense significance as a market for Thai sellers seeking global expansion. With a vast population of over 330 million internet-savvy consumers and a thriving economy, the US presents a golden opportunity for businesses looking to tap into its potential. In the first quarter of 2023 alone, the country's e-commerce revenue reached a staggering US$272.6 billion, accounting for 15.1% of its total retail sales.
However, it's important to note that the US market also presents challenges, including intense competition from established domestic brands and complex tax regulations. Despite these hurdles, the sheer size of the US economy, its purchasing power, advanced technologies, and the population's affinity for shopping make it a hotspot that international businesses of all sizes cannot ignore.
To overcome these common challenges and unlock the vast potential of the US market, Thai sellers must focus on understanding the preferences and behaviours of US buyers. Additionally, navigating the complex tax landscape and being aware of all the regulations of shipping to the US are crucial steps for successful expansion. By doing so, Thai sellers can seize the opportunities offered by this lucrative market.
The US market: A golden opportunity for Thai sellers
As mentioned, the inherent diversity of the massive US consumer market poses an excellent opportunity for Thai sellers to cater to a wide range of consumer preferences and interests.
In addition, the booming e-commerce scene in the USA makes it an ideal space for Thai sellers to market their products. With the rise of online marketplaces and the convenience of cross-border shopping, US buyers are increasingly open to purchasing goods from international sellers. As a matter of fact, statistics from Insider Intelligence show that American consumers have a strong affinity for discovering and purchasing products from cross-border brands, with over half of them engaging in online shopping from foreign sites. This openness to international brands provides a promising avenue for Thai sellers to showcase their products and capture the attention of US buyers.
With exports from Thailand to the USA having grown by 1.7% in March 2023, it is made even clearer that Thai sellers can leverage the popularity of certain products to expand into the US market. According to Trading Economics, key exports from Thailand to the USA include electronics, precious stones, furniture, and articles of apparel. By understanding the demand for these goods, Thai sellers can tailor their product offerings to meet the preferences of US buyers.
But what exactly are the preferences and behaviours of the American buyer?
Understanding the American buyer
Understanding the motivations behind American shoppers buying from cross-border brands is crucial for shaping your marketing and sales strategy. And to do that, Thai businesses need to be aware of the key factors driving US shoppers to purchase from overseas markets.
One significant reason is the appeal of lower prices. In the US, consumers have become more price-conscious due to financial and pandemic-related challenges. As such, promotions and price comparisons play a significant role in their purchasing decisions. Moreover, American consumers tend to perceive bulk purchases as providing value for money. And since manufacturing prices are often lower in APAC regions compared to the US, it is common for American wholesalers to buy products overseas in bulk for resale.
With more consumers actively seeking value, price is also the primary motivation behind brand switches. This has indirectly led to new purchasing behaviours, with more and more consumers trying new products and private-label brands. Since international businesses bring something new to the table, offering products that domestic sellers can't, the appeal of international businesses is made more apparent.
By understanding these preferences and behaviours of American buyers, Thai sellers can tailor their strategies to meet their demands and preferences.
Shipping to USA from Thailand: Things Thai sellers need to know
To ensure successful customs clearance in the US, one should be well informed on the various taxes, tariffs, and documents required to be able to ship from Thailand to the USA.
1. De Minimis Value for items imported into the US
The concept of De Minimis Value plays a significant role in importing items into the United States. It refers to the value below which goods can be shipped into a country without incurring duties and taxes.
The De Minimis Threshold (DMT) is the legal term for this threshold, and it varies from country to country. In the United States, for example, the DMT is set at US$800. This means that goods valued at US$800 or less can enter the US without being subject to taxes. The purpose of this threshold is to streamline the customs process by waiving the collection of duties and taxes for very small amounts, as it is often more efficient to do so.
It is important for Thai sellers shipping to the US to be aware of the De Minimis Value and understand the implications it has on their shipments. By staying within this threshold, businesses can ensure a smoother customs clearance process and avoid additional shipping costs associated with duties and taxes.
2. Documents required for import clearance in America
Whether to Seattle, Florida, or even Texas, when exporting goods to any location in the USA, certain documents are required for import clearance. These documents serve as proof of compliance with customs regulations and facilitate the smooth flow of goods through customs.
Commonly required import documents include a commercial invoice. The commercial invoice is an important document for customs clearance purposes. As such, be sure to prepare the invoice in accordance with U.S. Customs and Border Protection (CBP) regulations, and include specific information about the goods. This includes details such as the port of entry, buyer and seller information, description of the merchandise, quantities, purchase price, rebates and bounties, country of origin, and additional goods or services related to production. Also, note that the commercial invoice must be in English or accompanied by an accurate English translation.
Additionally, customs may require specific documents based on the nature of the goods, such as permits, licenses, or certificates of origin, to determine merchandise admissibility.
3. Understand the Harmonised Tariff Schedule of the US
The Harmonised Tariff Schedule (HTS) of the United States plays a vital role in determining the duty or duty-free entry status of imported goods. Each product is classified under specific items in the HTS, which governs the applicable customs duties.
Therefore, it is essential for Thai sellers shipping to America to understand the HTS and accurately classify their products. By doing so, they can ensure compliance with customs regulations and determine the correct duty rates for their goods. This will, in return, mitigate any potential issues or delays with customs clearance.
4. Prohibited and restricted items
Whether shipping to New York, Los Angeles, Seattle, Florida, California, Texas, or anywhere else in the US, certain categories of merchandise may be subject to import restrictions or prohibitions in order to safeguard the economy, security, consumer health, and the environment of the country. As such, it's essential for Thai sellers to understand what these items are when shipping to the USA and adhere to the regulations to avoid potential penalties.
For example, the shipping of eggs, pupae, or larvae of certain insects is strictly prohibited unless for scientific purposes and in accordance with regulations set by the Secretary of Agriculture. Similarly, the shipping of plants and plant products is subject to regulations set by the Department of Agriculture, which may impose restrictions or prohibitions.
Furthermore, the importation of arms, ammunition, explosives, and implements of war is strictly prohibited unless a license is obtained from the Bureau of Alcohol, Tobacco, Firearms and Explosives of the Department of Justice. Shipping controlled substances, including narcotics and other dangerous drugs, to the US, is strictly prohibited too. This is unless it is done in compliance with regulations established by the Drug Enforcement Administration of the Department of Justice.
Ship internationally with DHL Express
When it comes to shipping to the USA from Thailand, DHL Express is the trusted partner for businesses worldwide. With our extensive experience in international shipping and expertise in cross-border logistics, we offer reliable and efficient shipping solutions tailored to your needs. From competitive shipping rates and fast transit times to comprehensive solutions to streamline complex international logistics operations, DHL Express ensures a seamless shipping experience for Thai sellers.
Moreover, we understand how protecting the value of shipments is crucial when shipping to the US since mishaps during transportation can result in financial losses. By choosing a reliable logistics partner like DHL Express, rest assured that shipment value protection is provided, giving you peace of mind and ensuring their products reach US buyers safely and securely.
Ship all over America to cities like Seattle, Florida, California, Texas, or anywhere else around the globe with confidence. Open a business account with DHL Express today to discover our reliable international shipping solutions tailored for Thai sellers.
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