Has your IT equipment ever been held at Thai customs due to a licence you didn’t know you needed? It even happens to the most experienced importers.
Controlled IT equipment is highly regulated in many countries, including Thailand, to safeguard national and international security. Without a clear understanding of your import requirements and a fast track on regulatory changes, you can miss out on various procedures, rendering your import non-compliant.
In this article, Blackthorne discusses everything you need to know before importing controlled IT equipment to Thailand. You’ll also understand why Thai customs recommends partnering with legal experts like Blackthorne IOR and freight forwarders to handle customs clearance.
Let’s dig in!
What is Controlled IT Equipment?
Controlled IT equipment refers to hardware and software subject to import restrictions due to their potential threat to national and international security.
IT equipment can be classified as controlled if it:
- Contains encryption or cryptographic technology
- Enables wireless transfer of data
- Falls under the dual-use goods category
Governments impose import controls on IT equipment for various reasons, including:
- Aligning with international export control guidelines
- Mitigating technology diversion to sanctioned entities or unintended end users
- Preventing surveillance, data theft, and foreign interception
Since IT equipment is broad, relevant authorities in every country develop and enforce import regulations based on their type and application.
4 Types of IT Equipment Import Controls in Thailand
Thailand enacts import controls through four main authorities:
- Thai Customs Department
- National Broadcasting and Telecommunication Commission (NBTC)
- Thai Industrial Standards Institute (TISI)
- Department of Foreign Trade (DFT)
These authorities classify, oversee, and approve the importation of controlled IT and telecom equipment.
Let’s deep-dive into the import controls under each authority:
1. Thai Customs Controls
Before your equipment can enter the market, you must satisfy Thai customs procedures, including:
- HS code classification
- Filing an import declaration
- Paying import duties and taxes
- Providing transportation documents (Invoice, packing list, and bill of lading)
- Presenting import licences and approvals (and any other relevant documentation)
2. National Broadcasting and Telecommunication Commission (NBTC)
NBTC is Thailand’s telecom and radiocommunication regulatory body.
It oversees:
- Approval of wireless devices
- Type certification (Class A or B)
- Supplier’s Declaration of Conformity (SDoC)
You can learn how to judge if your IT equipment belongs to Class A, B, or SDoC.
By evaluating where your equipment belongs under the various classifications, you can determine if your goods are controlled or exempt from licensing.
Licensed equipment must pass NBTC technical standards, and lab tests and approvals must be obtained before importation.
Examples of controlled goods under NBTC include:
- Wi-Fi routers with dual-band
- RFID readers
- Broadband PLC equipment
- Drones with Cameras
- GPS smartwatches
3. Thai Industrial Standards Institute (TISI) Controls
TISI enforces mandatory safety and EMC certification for electrical and ICT equipment.
Controlled products must:
- Be tested by accredited labs
- Undergo factory inspection (for manufacturing best practices)
- Receive a TISI certificate before customs clearance
Examples of TISI-controlled goods include laptops, smart TVs, power banks, modems, and networking devices.
4. Department of Foreign Trade (DFT) Controls
Thailand’s DFT enforces national controls on dual-use goods and strategic IT equipment under the Trade Controls on Weapons of Mass Destruction (TCWMD) Act.
In 2021, the department introduced some ‘catch-all-controls’ (CAC) to ensure the importer takes responsibility for controlled activities involving dual-use items (DUIs).
As such, importers of high-risk technologies, including encryption/decryption-enabled devices, cybersecurity appliances, and surveillance and monitoring systems, must:
- Determine if goods fall under the DUI classification using ECCNs or DUI codes via DFT’s e-TCWMD portal
- Keep accurate and accessible import records
- Verify end-use, end-user, and import destination
- Report any risks or doubts to DFT before shipment
- Consider developing a DFT-certified internal compliance program (ICP)
How to Import Controlled IT Equipment to Thailand
Even with an understanding of the regulatory requirements for your equipment, it can be challenging to determine the import procedure to follow, from signing contracts to customs clearance.
Here is a step-by-step guide to importing controlled IT equipment to Thailand:
1. Local Business Registration
Carrying out licensed trade activities in Thailand requires your business to have a local address.
You need to establish a local presence if:
- You’re serving as the importer of record (not using a third-party IOR)
- You want to register import licences under your company name
- You plan to distribute IT equipment locally
To register a local branch or representative office in Thailand, foreign importers need to:
- Choose a company type (Thai Limited Company is the most common)
- Register with the Department of Business Development (DBD)
- Get a Tax ID and VAT registration
- Apply for an importer ID from Thai customs
Registering locally is unnecessary if your customer in Thailand is the importer or you are shipping directly to a local buyer.
You may also appoint an importer of record, like Blackthorne, to manage local compliance, documentation, and customs clearance on your behalf.
2. Classify Equipment Using HS Codes
Accurate HS Code classification of your equipment enables you to:
- Determine the import controls and requirements, including licences, certifications, and approvals
- Assess applicable duties and taxes
- Conduct end-user and end-use screening
3. Prepare Import Documentation
Import documents you should prepare include:
- Customs declarations
- Transportation paperwork
- Buyer-seller contractual agreements
- Import licences, approvals, or certifications
- Technical documentation, including test reports and user manuals
4. Arrange Shipping Logistics
Work with an established freight forwarder to:
- Plan logistics management
- Ensure secure packaging and proper labelling
- Submit shipping documentation to Thai Customs
5. Submit Documentation, Settle Duties and Taxes
Since your documents are ready, submit them to Thai customs via the e-customs system, then calculate duties and taxes:
- Start with an import declaration so customs officials can verify and determine the lane for shipment clearance.
- Duties and taxes are calculated based on the CIF value (Cost + Insurance + Freight)
Import duty ranges from 0-20%, based on the HS code. The standard VAT is 7%, applied on CIF + duty.
6. Handling Customs Clearance and Cargo Inspection
Once customs officials verify that you meet all import requirements, they inspect and release your cargo.
7. Plan for Post-Import Compliance
Regulations change, licences expire, and licensing authorities may plan for an import transaction audit.
Here’s what you can do to ensure ongoing compliance:
- Track licence validity for timely renewals
- Service your IT equipment for quality compliance
- Routinely audit your ICP to match new requirements
- Stay ahead of regulatory updates to comply accordingly
- Keep import transaction records for the minimum required duration (at least 5 years)
How to Obtain a Tech Equipment Import Licence in Thailand
An import licence/approval is one of the requirements for importing IT equipment regulated under NBTC and TISI.
But how do you navigate the procedures for acquiring such licences?
Below is a breakdown of the licensing/approval procedures for obtaining import licences in Thailand:
How to Obtain NBTC Approval
Here are the steps for obtaining NBTC approval:
Step 1: Equipment classification
Determine if your equipment falls under Class A, B, or SDoC.
Step 2: Type-testing
Perform equipment type-testing via the national authority’s (NBTC) laboratory or an ISO 17025-accredited lab.
Step 3: Application form
Prepare the licence application form (submitted in the Thai language).
Step 4: Technical documentation
Prepare relevant documentation, including test reports obtained from the lab, product photo and specifications, service and operational manual, and circuit diagrams.
Step 5: Documentation approval
Submit technical documentation for approval (approval takes 4-6 weeks).
Step 6: Proof of compliance
If your equipment is successfully registered, you receive a registration number and a proof of compliance (Type-Approval valid for 3 years).
Applying for TISI Import Licence
Here are the steps for obtaining a TISI licence for controlled IT equipment in Thailand:
Step 1: Establishing licensing requirements
Visit the TISI official website and use keywords like ‘electrical equipment’ to search certification requirements on the home page.
Ensure to find the relevant product category to see if it requires mandatory certification.
Step 2: Submitting an e-licensing request
Submit a request for product testing and factory quality-control assessment via TISI’s e-licence portal.
Step 3: National Single Window (NSW) registration
Register via the NSW and upload product samples and relevant documentation, including an Invoice, a copy of the service application, and product details for approval.
Step 4: Printing the Release Certificate
Once customs releases the samples, you must print the release certificate to submit alongside a sample declaration letter to TISI.
Step 5: Sharing samples with TISI
Reach out to TISI, requesting product testing. You can specify a preferred lab.
Step 6: Assessing factory QMS
TISI verifies the Manufacturer’s Quality Management System (QMS).
If the manufacturer is already TISI-registered, you’ll need a letter of Conformance. If the factory isn’t registered, TISI or a certified inspection body will do the assessment.
Step 7: Evaluating the equipment test report
TISI evaluates the equipment test results from the lab and guides the way forward.
Step 8: Submitting the e-licence application
Here’s a list of all the documents you’ll need for the e-licensing:
- Invoice
- Company’s Certificate
- Release Certificate (permit number)
- Technical documentation (Pictures of the product, process flow diagrams, quality manual, product specifications)
- Sample declaration letter
- QMS assessment report/Letter of Conformance
- Sample of equipment label with product info, including TIS mark, brand name, model number, and importer’s name
Step 9: Generating equipment QR Code
Once you have your product licence, you need to generate a QR Code, usually displayed together with the TIS mark.
Ensuring Dual-Use Control Compliance in Thailand
While Thai Customs and the Department of Foreign Trade (DFT) play a critical role in ensuring legal importation, they do not directly issue import licences.
However, as an importer, you must comply with import requirements under these authorities, particularly customs clearance and dual-use controls.
Here are five key best practices for dual-use control compliance in Thailand:
1. Determine if Your Equipment is Dual-Use
To check if your equipment is dual-use, screen your goods against the two DUI lists in Thailand:
- List 1: Based on the EU 2019 Dual-Use List
- List 2: Based on Controlled HS codes for WMD-related goods via the e-TCWMD portal
2. Assess End-Use and End-User Legitimacy
Before importing your equipment:
- Confirm that the end-use is civilian
- Avoid utilising restricted or embargoed routes
- Ensure the end-user is not on a sanctioned list or linked to suspicious activities
If you doubt the legitimacy of a recipient or end-use, you must report to the DFT immediately.
3. Maintain Complete and Accurate Documentation
You must keep detailed records of:
- Product classifications and technical specifications
- Transaction history and shipping documentation
- Internal compliance screening reports
- End-use and end-user declarations
- Relevant authorisations/permits
These records should be available to submit to DFT or Thai customs officials upon request.
4. Develop a DFT-Certified Internal Compliance Program (ICP)
If you handle dual-use goods regularly, consider developing an ICP that:
- Details your end-use/end-user screening procedures
- Outlines internal roles and compliance responsibilities
- Covers staff training, reporting, and self-auditing processes
5. Respond Promptly to Any Non-Compliance Notices
If the DFT identifies a risk attached to your shipment, they may suspend your transaction and notify Thai customs.
You must halt any import activities immediately to evaluate your transaction.
After evaluation, you can appeal the suspension or request a review with supporting evidence.
Note
Violating dual-use controls may result in hefty penalties, imprisonment, delayed shipments, and reputational damage.
Working with a legally approved IOR like Blackthorne can help lower non-compliance risk.
Navigating Thailand’s IT Equipment Import Controls with Blackthorne
The risks of importing controlled IT equipment are insurmountable.
However, with the right expertise and experience, you can import compliantly to any favourable destination.
Blackthorne offers compliant, cost-efficient, and timely importation of IT equipment by prioritising these 3 aspects:
- All-in-one global supply chain solution: Engaging multiple service providers can be time-consuming, inconvenient, and costly. We are your one-stop shop, handling all cross-border supply chain processes.
- 360° import control compliance: We combine technical expertise with international trade best practices to ensure end-to-end compliance
- Import/export licensing expertise: Our IOR and EOR services cater to all licensing requirements in the origin and destination countries.
If you are ready to expand your controlled IT equipment supplies to Thailand, you can call or email us at sales@blackthorneit.com for a cost-effective yet compliant delivery!
