International Logistics Business to Send Boxes in the Philippines

Starting a logistics company in Thailand to facilitate the shipment of boxes from Filipinos via container vans and deliver them to the Philippines is a promising venture. Thailand’s strategic location in Southeast Asia, coupled with its robust infrastructure and growing trade relations, makes it an ideal hub for international logistics. This comprehensive guide provides step-by-step instructions on establishing a legitimate logistics company in Thailand, ensuring compliance with local regulations, and setting up efficient operations.

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In Thailand: Step 1: Establish Your Business in Thailand

1.1 Choose the Right Business Structure

For foreign entrepreneurs, the most suitable structure is a Private Limited Company. This requires at least 51% Thai ownership, with the remaining 49% held by foreign nationals. However, there are avenues for 100% foreign ownership, such as the Board of Investment (BOI) promotion or the Foreign Business Act. Consulting with a legal expert can help determine the best structure for your business.

1.2 Register Your Company

Register your business with the Department of Business Development (DBD) under the Ministry of Commerce. The process includes:

• Selecting a company name
• Drafting the Memorandum of Association
• Holding a statutory meeting
• Registering with the DBD

1.3 Obtain Necessary Licenses

Apply for an Import/Export License (Custom Card) from the Thai Customs Department. This license is essential for conducting international trade. The application process involves:

• Registering for the e-Customs System
• Submitting required documents, including a commercial invoice, packing list, and bill of lading
• Obtaining a digital certificate for online transactions

1.4 Set Up a Bank Account

Open a corporate bank account in Thailand. This is necessary for financial transactions and to demonstrate the company’s financial stability.

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📦 Step 2: Set Up Your Logistics Operations

2.1 Freight Forwarding Services

Partner with established freight forwarding companies in Thailand that offer services to the Philippines. Some options include:

• Siam Shipping: Provides various freight options and insights into customs clearance processes.
• Fluent Cargo: Offers comparison of freight rates, transit times, and emissions for shipping from Thailand to the Philippines.

2.2 Container Shipping

Utilize container vans for bulk shipments. The quickest sea route from Thailand to the Philippines takes approximately 4 days and 7 hours, departing from Laem Chabang Port to Manila.

2.3 Warehousing and Distribution

Establish warehousing facilities in strategic locations to facilitate the storage and distribution of goods. Ensure compliance with local regulations regarding warehouse operations and safety standards.

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🛃 Step 3: Navigate Customs and Compliance

3.1 Documentation

Ensure all shipments are accompanied by:

• Commercial Invoice
• Packing List
• Bill of Lading/Airway Bill
• Export Declaration Form

3.2 Customs Regulations

Familiarize yourself with Thai customs regulations to avoid delays or penalties. Non-compliance can result in seizures or fines.

3.3 Import/Export License

Obtain an import/export license from the Thai Customs Department. This license is essential for conducting international trade and requires submission of various documents, including a commercial invoice, packing list, and bill of lading.

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In the Philippines: Step 4: Coordinate Deliveries to the Philippines

4.1 Partner with Philippine Freight Forwarders

Collaborate with Philippine-based logistics companies to handle the last-mile delivery. Some options include:

• Seven Seas Worldwide: Offers door-to-door collection and delivery services from Thailand to the Philippines.
• Siam Delivery: Provides express shipping services with free pickup, packing, and documentation.

4.2 Delivery Timelines

Shipping from Thailand to the Philippines typically takes between 1 to 3 days for air freight and approximately 4 days and 7 hours for sea freight.

4.3 Customs Clearance in the Philippines

Ensure compliance with Philippine customs regulations. This includes submitting required documents, paying applicable duties and taxes, and coordinating with local customs brokers for clearance.

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💼 Step 5: Manage Operations and Customer Service

5.1 Set Up a Local Office

Establish an office in Thailand to manage operations, customer service, and logistics coordination.

5.2 Hire Local Staff

Employ Thai nationals to handle day-to-day operations, ensuring compliance with local labor laws.

5.3 Implement Tracking Systems

Utilize logistics software to track shipments, manage inventory, and provide real-time updates to customers.

5.4 Customer Service

Provide excellent customer service by offering multiple communication channels, addressing customer inquiries promptly, and ensuring timely deliveries.

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📌 Additional Considerations

• Free Trade Zones: Explore opportunities in free trade zones for potential exemptions or reduced customs duties.
• Electric Vehicle Incentives: Consider transitioning to electric vehicles for your fleet, as the Thai government offers incentives for companies adopting EVs.
• Insurance: Obtain comprehensive insurance coverage for your shipments to protect against potential losses or damages.

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Final Thought

By following these steps and collaborating with reputable logistics partners, you can establish a legitimate and efficient logistics company in Thailand to serve the Filipino community. Ensure compliance with all regulations, maintain transparent operations, and focus on customer satisfaction to build a successful business.