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Thailand’s gem and jewelry industry is world-renowned and serves as a vital engine driving the national economy. Entering this industry offers immense opportunities, but it also presents challenges and regulatory complexities that require a thorough understanding.

As the Thai Gem and Jewelry Traders Association (TGJTA), we are committed to supporting new entrepreneurs in establishing a stable business foundation. This article serves as a guide, summarizing essential documentation and key knowledge based on current domestic and international practices.


1. Fundamental Preparation: Documentation and Business Registration

Before expanding into international trade, establishing a legally compliant domestic business is the first and most critical step. Entrepreneurs must begin with proper business registration:

  • Business Registration: Select the appropriate business structure (Individual, Limited Partnership, or Limited Company) and register with the Department of Business Development (DBD).

  • Value Added Tax (VAT) Registration: If the business generates an income exceeding 1.8 million THB per year, the entrepreneur is legally required to register as a VAT operator with the Revenue Department.

  • Specific Licenses (If applicable): For instance, if establishing a manufacturing facility, a Factory License (Ror. Ngor. 4) from the Department of Industrial Works is required.


2. The Taxation Landscape: What You Need to Know

Tax issues in the jewelry business are sensitive. However, there are government support measures that entrepreneurs must monitor closely:

  • Value Added Tax (VAT):

    • Exports: Gem and jewelry export businesses are entitled to a 0% VAT rate (Zero-rated VAT), meaning entrepreneurs can claim a refund on input tax related to those exports.

    • Import of Raw Materials: Thailand has measures exempting import duties and VAT for key raw materials—such as rough stones (for production and export) and gold—to support Thailand’s status as a Trading Hub. Always verify these privileges with the Customs Department and the Revenue Department.

  • Corporate Income Tax: Calculated from the net accounting profit based on legal rates (e.g., 20% for general entities or progressive rates for SMEs).

  • Import Duty: While some raw materials are exempt, importing finished jewelry or non-exempt materials requires duty payment according to the assigned Customs Tariff.


3. Decoding the "Harmonized System" (HS Code)

The Harmonized System (HS Code) is the heart of international trade. Entrepreneurs must accurately classify their goods to calculate taxes correctly and utilize trade privileges.

  • Importance: The correct code reveals the actual duty rate (both import and export) and is a crucial condition for claiming customs privileges (such as FTAs).

  • Main Category: Most gem and jewelry products fall under Chapter 71, which covers pearls, diamonds, colored stones, precious metals (Gold, Silver, Platinum), as well as fine and imitation jewelry.

  • Caution: Incorrect classification can lead to incorrect tax payments, cargo detention, or retroactive fines. Entrepreneurs should study this carefully or consult experts (such as Shipping Agents or Customs Brokers).


4. Conquering the Global Market: Export Procedures

Exporting Thai gems and jewelry to the global market requires readiness in documentation and adherence to international regulations:

  • Key Export Documents:

    • Commercial Invoice

    • Packing List

    • Bill of Lading or Air Waybill

    • Export Declaration (currently processed via the e-Customs system)

  • Essential Certificates:

    • Certificate of Origin (C/O): A vital document used by the destination buyer to claim import duty reductions under Free Trade Agreements (FTA). Thai entrepreneurs must request this from the Department of Foreign Trade.

    • Certificate of Quality: For gemstones specifically, international markets often require certification from reputable institutes, such as the Gem and Jewelry Institute of Thailand (GIT), to verify quality and authenticity.


5. Adhering to International Standards (Global Compliance)

Beyond domestic documentation, the modern global market (especially the US and Europe) places significant emphasis on sustainability and transparency:

  • Traceability and Responsible Sourcing: International buyers demand assurance that raw materials (especially diamonds and precious metals) are not sourced from conflict zones (Conflict Minerals).

  • Kimberley Process (KP): For diamond traders, compliance with the Kimberley Process Certification Scheme (KPCS) is a mandatory international standard for exporting rough diamonds.

  • AML/KYC: Regulations regarding Anti-Money Laundering (AML) and Know Your Customer (KYC) are strictly enforced in high-value industries. Entrepreneurs must have rigorous partner verification processes in place.


Becoming an entrepreneur in the gem and jewelry industry offers high growth potential but requires diligence in tracking complex and ever-changing regulations.

Preparation regarding documentation, understanding taxes and HS Codes, and adapting to international standards are the keys to sustainable success. The Thai Gem and Jewelry Traders Association (TGJTA) stands ready to advise and support our members in overcoming these challenges.

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