International shipping terms from Thailand, explained

Who pays the duty

The three-letter Incoterms code on the invoice settles who pays duty, tax and import formalities before the box leaves Thailand. Three of the eleven cover a courier shipment by air.

Incoterms. "Incoterms® rules are a set of eleven three-letter trade terms, reflecting business-to-business practice in contracts for the sale and purchase of goods" (Incoterms® 2020, International Chamber of Commerce, iccwbo.org).

DDP, Delivered Duty Paid. "DDP (Delivered Duty Paid) is unique: the seller is responsible for all duties, taxes and import formalities in the destination country" (Using the Incoterms 2020 Rules to Manage Tariff Risk in International Trade, ICC, April 2025). Dragon Courier ships duty and tax inclusive to the USA, EU, UK, Canada, Norway, Switzerland and UAE. The receiver pays nothing on arrival.

DAP, Delivered at Place. "Under DAP, the seller delivers the goods and transfers the risks to the buyer once the goods are at the agreed place of destination, ready for unloading" (Incoterms® 2020: DAP or DDP?, ICC Academy). Duty, VAT and any inspection fee at destination belong to the buyer.

EXW, Ex Works. "EXW means that the seller delivers the goods at the agreed location [...] by making them available to the buyer" (Incoterms® 2020: EXW or DDP?, ICC Academy). Export clearance, freight and import tax are on the buyer from the seller's door.

How the price is calculated

Air carriers bill on the higher of two numbers: the weight on the scale and the space the box takes up.

Volumetric weight. "To determine the volumetric rate, the general rule is to divide the volume of the shipment in cubic centimeters by 6000" (Air Cargo Tariffs and Rules: What You Need to Know, IATA, iata.org).

Chargeable weight. "Whichever is higher, the volumetric weight or actual weight, that is the amount that will be used for pricing the air freight cost" (IATA, Air Cargo Tariffs and Rules). Dragon Courier prices every shipment on weight and dimension, quoted for the destination country, with no hidden fees or surcharges added afterward.

Declared value. The value stated at booking. Dragon Courier's insurance covers loss at the declared value the sender chooses. What the cover excludes is on the refund and cancellation policy.

What the customs office reads

Every parcel crossing a border carries a code for what it is, a document for what it is worth and a contract for who is carrying it.

HS code. "It comprises more than 5,000 commodity groups; each identified by a six digit code, arranged in a legal and logical structure and is supported by well-defined rules to achieve uniform classification" (What is the Harmonized System, World Customs Organization, wcoomd.org). Dragon Courier's clearance team assigns the code on its duty inclusive shipments.

Commercial invoice. "The commercial invoice or other acceptable documentation shall contain: An adequate description of the merchandise. The quantities of the merchandise. The values or approximate values of the merchandise. The appropriate eight-digit subheading from the Harmonized Tariff Schedule of the United States" (Commercial invoice requirements, U.S. Customs and Border Protection, help.cbp.gov). Dragon Courier needs the contents of the package and the receiver's name, address and contact number to book.

CN22 and CN23. "As per UPU guidance, CN 22 forms can be used for goods up to the value of 300 SDR and CN 23 forms can be used for goods over this value" (Customs treatment of post and parcel exports, HMRC, gov.uk). Both are postal forms. A courier shipment travels on a commercial invoice instead.

Air waybill, AWB. "The Air Waybill is the document created by or on behalf of the shipper which begins the contract between the shipper and the carrier to transport their goods" (Air Cargo Tariffs and Rules: What You Need to Know, IATA, iata.org). Dragon Courier issues one waybill per shipment and the same reference follows the box to the door.

Freight forwarder. FIATA defines "Freight forwarding and logistic services" as "services of any kind relating to the carriage (performed by single mode or multimodal transport means), consolidation, storage, handling, packing or distribution of goods" (About Freight Forwarding, FIATA, fiata.org). Dragon Courier books, clears and delivers inside its own network.

Export declaration, Thailand. "All goods being exported from Thailand are subject to Customs control and must be reported to Customs. [...] Most applications for an Export Declaration are submitted electronically via the e-Export system" (Export, Thai Customs Department, customs.go.th). Dragon Courier files the export declaration for its own shipments.

What happens at the border

The border is where the paperwork turns into a bill or a release.

Duty. "A duty of customs (to be known as "import duty") is charged in accordance with provision made by or under this Part by reference to the importation of chargeable goods into the United Kingdom" (Taxation (Cross-border Trade) Act 2018, section 1, legislation.gov.uk). The rate follows the HS code and the country of origin.

VAT and GST. "VAT is charged at the VAT rate that applies to your goods" (Tax and customs for goods sent from abroad, gov.uk). On Dragon Courier's duty inclusive markets that tax is inside the price paid in Bangkok.

De minimis. The value under which a country waives duty or tax on a parcel. The United States suspended its 800 dollar waiver for every country from August 29, 2025 (Executive Order 14324, Federal Register). The European Union applies a temporary 3 euro duty per item on consignments up to 150 euros from 1 July 2026 (European Commission). A parcel now pays duty at any value into both markets.

Customs value. "the transaction value, that is the price actually paid or payable for the goods when sold for export to the country of importation" (Customs Valuation Agreement, Article 1, WTO). Not the retail price and not the insured value.

Customs broker. "Licenses are issued to persons (i.e., individuals, corporations, partnerships, and associations) to conduct "customs business" on behalf of other persons" (Customs Brokers, U.S. Customs and Border Protection, cbp.gov). Dragon Courier's own clearance team fills that role on its duty inclusive shipments. The customer does not hire one.

Importer of record, IOR. "Even when using a broker, you, the importer of record, are ultimately responsible for the correctness of the entry documentation presented to CBP and all applicable duties, taxes and fees" (Tips for New Importers and Exporters, help.cbp.gov). Dragon Courier offers an IOR service for customers who need one.

What can go wrong

Plants, listed species, dangerous goods and prohibited items are where a shipment stops.

Phytosanitary certificate. "Phytosanitary certificates are issued to indicate that consignments of plants, plant products or other regulated articles meet specified phytosanitary import requirements" (International Plant Protection Convention, FAO, fao.org). Dragon Courier arranges the certificate free of charge for the USA and the UK. Other markets carry a charge for the same document.

CITES. "CITES (the Convention on International Trade in Endangered Species of Wild Fauna and Flora) is an international agreement between governments. Its aim is to ensure that international trade in specimens of wild animals and plants does not threaten their survival" (What is CITES?, cites.org). "Such trade should normally be accompanied by a CITES permit or certificate" (CITES Permit system, cites.org). Dragon Courier sends CITES documentation to major markets including the USA, and arranges it for others on request. Details for plant orders are on the plant export page.

Dangerous goods. "The Technical Instructions amplify the basic provisions of Annex 18 and contain all the detailed instructions necessary for the safe international transport of dangerous goods by air" (Technical Instructions for the Safe Transport of Dangerous Goods by Air, Doc 9284, ICAO). Dragon Courier does not send batteries, religious items or anything illegal, to any country.

Prohibited and restricted goods. "Prohibited Goods are goods for which either the import into or export out of Thailand are prohibited. [...] Restricted Goods are goods of which the imports and exports are restricted by law and therefore require a permit from the related government agencies" (General Prohibitions and Restrictions, Thai Customs Department, customs.go.th). The destination country keeps its own list. Dragon Courier's team confirms what is excluded for a given market on request.

How Dragon Courier handles it

Dragon Courier clears customs door to door as part of the service. Door to door tracking is provided on export day and can be shared with the receiver. No signature is taken on delivery, because it can delay the drop; a proof of delivery file follows once the box has arrived. Blue Dart Express, the faster option, runs on direct flights in 5 to 8 days for shipments from 5 kg. No remote area surcharge and no hidden fees on any shipment. Once a shipment has exported, the address cannot be changed.

About Dragon Courier

Dragon Courier is a Bangkok-based international courier shipping from Thailand to over 200 destinations. The business started in tailoring 30 years ago and has run under the same management team for most of that time. Today that is more than 20,000 shipments a month, duty and tax included on the main markets.

Contacts and drop-off

The contents of the box and where it is going are enough to get a quote. Office +66 2656 9019, WhatsApp and LINE at +66 6-5937-0812, or info@dragoncourier.com.

Drop-off runs until 17:00, Monday to Saturday, at the Bangkok office on Sukhumvit Soi 4 (217/3 Crystal Garden Building, 3rd floor, Klongtoey 10110) or the Chiang Mai office on Viangbua Road. A pickup can be arranged in Bangkok and Pattaya for a date and time that suits.