The trade relationship between Thailand and Kuwait has strengthened over the years, reaching a significant milestone with the recent celebration of their 60th anniversary of diplomatic relations on 14 June 2023. This occasion marked a renewed commitment from both nations to enhance their trade and investment ties further.
To maximise these opportunities, we've outlined key strategies and insights to help businesses streamline their international shipping operations from Thailand to Kuwait.
Understanding the Kuwaiti market
Kuwait's market, characterised by its diverse and affluent consumer base and a preference for high-quality, competitively priced products, aligns well with Thailand's well-developed manufacturing sector. This sector's capacity to produce goods at competitive prices makes Thai products highly attractive to Kuwaiti importers, establishing it as a lucrative destination for Thai exporters.
In line with its strategy to broaden its economic influence in the Middle East, Thailand has begun Free Trade Agreement negotiations with the United Arab Emirates (UAE). This initiative is part of a broader goal to secure export tariff exemptions from the six members of the Gulf Cooperation Council (GCC), which includes Kuwait. Such developments are expected to further boost the appeal of Thai products in the region.
Over the years, exports from Thailand to Kuwait have significantly increased and diversified, encompassing various products. According to data from the BACI database provided by CEPII, Kuwait's top imports from Thailand in 2022 included cars (US$74.8 million), delivery trucks (US$66.4 million), and wood fiberboard (US$45.7 million). Other notable imports were air pumps (US$38.4 million) and jewellery (US$34.8 million). Overall, exports from Thailand to Kuwait reached US$608 million.
This figure highlights the robust demand for Thai products within Kuwait's import market. It offers significant opportunities for Thai businesses to enhance their export strategies and broaden their presence in the Kuwaiti market and the broader Middle East.
Navigating Kuwait's shipping regulations and requirements
Understanding Kuwait's shipping regulations is essential for ensuring smooth and compliant transactions. Here's an overview of key aspects to take note of:
Import and export regulations
Mastering the complexities of international trade requires a deep understanding of the import and export regulations that govern commerce between countries.
In Kuwait, regulations mandate that importers must be registered with the Kuwait Chamber of Commerce and Industry (KCCI). Meanwhile, Thailand requires that all goods for export be reported to Customs to ensure they meet local and international standards.
Essential documents and requirements for smooth trade include:
- Commercial invoice
- Certificate of origin
- Packing list
- Bill of lading or airway bill
- Export/import licence
Moreover, depending on the product type, additional licences or certificates may be required to meet specific regulations. This measure ensures a smooth customs clearance and minimises delays in the import-export process.
What is not allowed to ship to Kuwait?
For businesses shipping to Kuwait, knowing the specific products prohibited from entry is essential. These items or goods include:
- Alcoholic drinks
- Beer and wine-making kits
- Gambling devices and playing cards
- Illegal drugs and related paraphernalia
- Ivory products
- Pork and pork products
- Radio transmitter/communication equipment
- Religious articles not related to Islam
- Political or religious materials offensive to the Kuwait government or Islamic faith
- Pornographic materials
Note: The importation of firearms and explosives into Kuwait is subject to specific procedures and requires proper authorisation.
Customs duties and taxes
In Thailand, manufacturers and trading agents shipping commercial goods to Kuwait can apply for tax compensation under the Tax and Duty Compensation of Exported Goods Produced in the Kingdom Act B.E.2524 (1981) to reduce production costs of items for export and enhance competitiveness.
Meanwhile, as part of the GCC customs union, Kuwait typically imposes a 5% import duty on most products under the Unified Customs Law and Single Customs Tariff. However, essential items like basic foodstuffs and medical supplies are exempt, while tobacco products attract a 100% duty. This structure determines the overall Kuwait import tax that applies to incoming goods.
Preparing your shipments for Kuwait
Ensure successful exports to Kuwait by following these strategic shipping preparation tips.
Packaging and labelling standards
Adequate packaging and labelling practices are essential to ensure your shipments comply with Kuwait's import standards and withstand overseas shipping from Thailand.
Labelling practices:
- Labels must be in Arabic, but multilingual labels are allowed
- Include product and brand name, content description, country of origin, manufacturer details, and expiration dates
- Ensure that all text is clear, legible, and cannot be altered
Packaging tips:
- Use sturdy, high-quality materials to protect goods during transit
- Reinforce packages with strong tape and cushioning to prevent damage
- Clearly mark handling instructions, such as "Fragile" or "This Side Up”
Following these guidelines helps ensure your shipments meet Kuwait's import requirements and arrive safely.
Secure cargo or shipping insurance
Shipping to the Middle East, particularly to destinations like Kuwait, introduces specific risks due to the considerable distance and numerous stops involved in the journey. These factors significantly increase the chances of cargo theft, damage during extended transits, and losses from unforeseen delays.
Comprehensive cargo or shipping insurance is vital for mitigating these vulnerabilities. It protects against potential mishaps, whether at busy transit hubs or during the multiple loading and unloading processes that are typical in such lengthy shipments. Ensuring your cargo is adequately insured not only safeguards your financial interests but also enhances the reliability and credibility of your shipping operations from Thailand to Kuwait.
Ship from Thailand to Kuwait with DHL Express
Successfully exporting to Kuwait begins with choosing a dependable logistics partner. At DHL Express Thailand, we bring extensive knowledge and experience in managing international shipments, ensuring your exports are navigated with precision and strategic oversight.
Our expert customs team is well-versed in Kuwait’s customs clearance procedures, helping businesses ensure compliance for smooth deliveries. Additionally, we offer a variety of shipping options, from express deliveries to on-demand services, all backed by real-time tracking features that enhance visibility and provide peace of mind. For added security during transit, we also offer optional shipping insurance.
Seize the growth opportunities in the Kuwaiti market by leveraging DHL Express’s comprehensive shipping and logistics solutions. Open a business account with DHL Express Thailand today for hassle-free exports to Kuwait and other Middle Eastern countries.
