Thailand has been a member of the World Trade Organisation (“WTO”) since 1 January 1995 and has been a contracting party to the General Agreement on Trade and Tariffs (GATT) since 20 November 1982.

Thailand actively participates in the WTO and maintains a Permanent Mission of Thailand to the WTO and World Intellectual Property Organisation (WIPO) in Geneva.

The trade policies and practices of Thailand have been reviewed at the WTO eight times, with the most recent Trade Policy Review Report issued by the WTO Secretariat on 29 September 2020.  It describes Thailand as being actively engaged in the WTO’s negotiations and regular work, and states that Thailand grants at least most-favoured-nation (MFN) tariff treatment to all its trading partners.

Thailand is an observer to the WTO Committee on Government Procurement but has not commenced negotiations on accession to the Plurilateral Agreement on Government Procurement.

Thailand has participated in discussions on the Joint Initiative on E-Commerce.  On 26 July 2024, Thailand was one of the 82 WTO members supporting a draft agreement on e-commerce referred to as a “stabilized text” on issues such as transparency, cooperation and development, as well as exceptions for issues such as personal data protection and security.

Thailand and the Philippines have been engaged in a long-running dispute called “DS371: Thailand — Customs and Fiscal Measures on Cigarettes from the Philippines”, which commenced with consultations in 2008. The WTO Dispute Settlement Body (“DSB”) formed a panel and, on 15 November 2010, circulated a report to members which found, amongst other things, that valuation decisions were made by Thailand in a manner inconsistent with both substantive and procedural obligations under Articles 1.1, 1.2(a) and 16 of the WTO Customs Valuation Agreement (“CVA”).

The Philippines did not agree that Thailand fully implemented the recommendations and rulings of the DSB and consequently commenced two further rounds of compliance proceedings.  Thailand appealed against certain issues of law and legal interpretation in the compliance panel reports, on 9 January 2019 and 9 September 2019 respectively; however, the substantial backlog of cases at the Appellate Body and delays in appointment of new Appellate Body members has meant that as of 1 November 2024, the appeal decisions remain unissued.

On 7 June 2022, Thailand and the Philippines entered into a bilateral “Understanding on Agreed Procedures Towards a Comprehensive Settlement of the Dispute in Thailand-Customs and Fiscal Measures on Cigarettes from the Philippines” (“Understanding“) in order to establish a bilateral consultative mechanism (“BCM”).

Thailand has been supportive of the WTO’s dispute settlement system.  It has expressed concerns about the long absence of a fully functional Appellate Body, particularly as a member with pending appeals.

Thailand is a party to the following bilateral and regional FTAs:

1. ASEAN Free Trade Agreement (AFTA) – entered into force on 1 January 1993;
2. Thailand-India Free Trade Agreement (TIFTA) – entered into forced on 1 September 2004
3. Thailand-Australia Free Trade Area (TAFTA) – entered into force on 1 January 2005;
4. Thailand-New Zealand Closer Economic Partnership (TNZCEP) – entered into force on 1 July 2005;
5. ASEAN-CHINA Free Trade Agreement (ACFTA) – entered into force on 20 July 2005
6. Japan-Thailand Economic Partnership Agreement (JTEPA) – entered into force on 1 November 2007;
7. ASEAN-Japan Comprehensive Economic Partnership (AJCEP) – entered into force on 1 June 2009;
8. ASEAN-South Korea Free Trade Area (AKFTA) – entered into force on 1 January 2010;
9. ASEAN-India Free Trade Area (AIFTA) – entered into force on 1 January 2010;
10. ASEAN-Australia and New Zealand Free Trade Agreement (AANZFTA) – entered into force on 12 March 2010;
11. Thailand-Peru Free Trade Agreement (TPCEP) – entered into force on 31 December 2011;
12. Thailand-Chile Free Trade Agreement (TCFTA) – entered into force on 5 November 2015;
13. ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA) – entered into force on 11 June 2019;
14. Regional Comprehensive Economic Partnership Agreement (RCEP) – entered into force on 1 January 2022; and
15. Sri Lanka-Thailand Free Trade Agreement (SLTFTA) – which has been signed and is expected to enter into force by 1 January 2025.

Thailand is also a member of the ASEAN Economic Community (“AEC”), which became effective in 2015.  In addition to trade liberalization, the AEC focuses on the economic integration of ASEAN countries and also covers the liberalization and facilitation of capital movement, labor movement, the harmonization of customs regulations, standards for goods, and economic policies among ASEAN countries.

Thailand is currently in the process of negotiating the following FTAs:

1. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) Free Trade Area;
2. Pakistan-Thailand Free Trade Agreement (PATHAFTA);
3. Thailand-Turkey Free Trade Agreement (THTRFTA);
4. ASEAN-Canada Free Trade Agreement;
5. Thailand-United Arab Emirates Free Trade Agreement;
6. Thailand-European Free Trade Association (“EFTA”) Free Trade Agreement, which was concluded on 29 November 2024 and is expected to be signed by January 2025;
7. Thailand-European Union Free Trade Agreement;
8. Korea-Thailand Economic Partnership Agreement (EPA); and
9. Thailand-Bhutan Free Trade Agreement.

In terms of monetary value, during the period January to September 2024, China was Thailand’s largest trading partner, followed by the United States, Japan, Malaysia, and Taiwan.

Exports

Thailand’s five major trading partners for exports are (in order starting from the largest): the United States, China, Japan, Malaysia and Australia.

The principal products are: (a) motor cars, parts and accessories, (b) automatic data processing machines and parts, (c) precious stones and jewellery, (d) rubber products, and (e) refined fuels.

Imports

Thailand’s five major trading partners for imports are (in order starting from the largest): China, Japan, Taiwan, United States and United Arab Emirates.

The principal products are: (a) crude oil, (b) electronic integrated circuits, c) machinery and parts, (d) electrical machinery and parts, (d), and (e) jewellery including silver bars and gold.

Source: https://tradereport.moc.go.th/en/stat/reportyear04

Domestic developments

(a) Thailand remains committed to its aspiration to graduate from an upper middle-income to a high-income country by 2037. Thailand aspires to become a value-based and innovation-driven economy and moving away from producing commodities to promoting technology, creativity and innovation in focused industries and, increasingly, in services.

In conjunction with the Bio-Circular-Green (BCG) economy model, which involves a strategy and reform agenda on how to achieve long-term objectives related to the Sustainable Development Goals (SDGs), the Thai government plans to achieve its goals toward a value-based and green economy.

(b) One of the key instruments of Thailand’s progress towards a “New Economy” is the Investment promotion and facilitation policy under the Board of Investment (“BOI”), which provides both tax-based (e.g. corporate income tax exemptions and import duty exemptions) and non-tax privileges (e.g. waiver of foreign ownership restrictions) for promoted projects.

Thailand has seen a post-Covid increase in manufacturing investment as companies diversify from concentrating production in China.  These companies have been able to take advantage of benefits provided by the BOI, as well as other government initiatives.  Regional efforts to boost connectivity, trade and investment are key ingredients for Thailand’s ability to implement its ambitious national development plans and post-COVID recovery and continue to be important for sustainable development in Thailand.

(c) The global shift towards electric vehicles (EVs) poses both challenges and opportunities for Thailand’s domestic auto industry. While Thailand has been a significant player in traditional automotive manufacturing, the rapid advancement of EV technology necessitates a strategic adaptation. Thailand aspires to become a leading global EV manufacturing hub, focusing on fully developing the EV industry. The plan includes producing essential components, transitioning from internal combustion engine vehicles to electric vehicles, and assisting current automotive part manufacturers in adapting to EV production.

International developments

(a) The ASEAN Economic Community has supported intra-regional investment. Strong cooperation with China and ASEAN is strengthening Thailand’s role in the implementation of the Master Plan on ASEAN Connectivity 2025 (ASEAN, 2016). Furthermore, the Regional Economic Comprehensive Partnership (RCEP) – a free trade agreement between the ten ASEAN member states and the five Asia-Pacific states with which ASEAN has existing free trade agreements – entered into force on 1 January 2022.  Thailand also continues to review its older-style investment treaties with vague investment protections and plans to start the process of seeking to update existing older-style BITs with treaty partners.

(b) In terms of its WTO profile, Thailand remains committed to the WTO and its priorities in the WTO agenda include: agricultural reform; tangible outcomes in market access in both agriculture and Non Agricultural Market Access (NAMA), which relates to trade negotiations on non-agricultural or industrial products; in services, progress towards developing domestic regulation disciplines; and Thailand is fully engaged in discussions on areas such as e-commerce.

(c) The ongoing trade tensions between the United States and China have significantly disrupted global supply chains, prompting companies to restructure their operations to mitigate risks and ensure resilience. This situation presents an opportunity for Thailand to position itself as a key player in global supply chains, particularly by exporting goods to replace those previously traded between China and the United States. For example, Thailand has increased agricultural exports to China and expanded exports of electronics, such as printed circuit boards (PCBs), and rubber products to the United States.

In order to establish a framework for preventing, addressing, and remediating business-related human rights abuses as set forth in the UN Guiding Principles on Business and Human Rights (UNGPs), Thailand has adopted the National Action Plan on Business and Human Rights Phase II: 2023 – 2027, which addresses key issues across four main areas: (a) labour rights, (b) community, land, natural resources, and the environment, (c) human rights defenders, and (d) cross border investment and multinational enterprises.

In addition, forced labour is illegal in Thailand under the Anti-Human Trafficking Act B.E. 2551 (2008). To strengthen enforcement, Thailand has recently issued a Prime Minister’s Office Announcement Re: Measures for the Prevention and Suppression of Trafficking in Persons in Business Establishments, Factories, and Vehicles, which imposes certain requirements on specific premises, such as factories under the Factory Act, including conducting annual training for employees on the prevention and suppression of human trafficking and forced labor or services.

Historically, Thailand has benefited from nearshoring by multinational conglomerates such as Toyota, which first nearshored its production unit to Thailand in 1996 and continues to maintain several plants.  More recently, Thailand has seen a post-Covid increase in manufacturing investment as companies diversify from concentrating production in China.  These companies have been able to take advantage of benefits such as the tax (e.g. corporate income tax exemptions and import duty exemptions) and non-tax privileges provided by the BOI.

Where Thailand seeks to ensure that certain strategic goods are produced onshore, it may use controls in the form of export restrictions.  For example, in response to the outbreak of the coronavirus disease (Covid-19) in Thailand, the Central Committee on the Price of Goods and Services (MOC) issued several regulations regarding export control measures on surgical face masks.

Thailand implements certain trade sanctions approved by the United Nations (“UN”) Security Council. In order to comply with these UN Security Council Resolutions, the Ministry of Commerce (“MOC”) will issue a notification under the Export and Import of Goods Act B.E. 2522 (1979) (“Export and Import of Goods Act”) setting out the relevant products and applicable exemption conditions.  For example, Thailand currently applies trade sanctions against the Democratic People’s Republic of Korea (“North Korea”) in respect of certain goods which are prohibited from export to, transit, and import from North Korea (such as weapons, military equipment, and luxury items, crude oil, refined petroleum products, as well as aviation fuel).  One relevant exemption condition is where the export or transit of luxury goods to North Korea is for use in the activities of diplomatic and consular missions according to the Vienna Convention on Diplomatic Relations 1961 and the Vienna Convention on Consular Relations 1963.

The Export and Import of Goods Act contains serious criminal penalties for any person who exports or imports prohibited goods – up to ten years’ imprisonment and/or a fine equivalent to five times the value of such exported or imported goods.  A person who transits the prohibited goods is subject to up to five years’ imprisonment and/or a fine equivalent to two and a half times the value of such transited goods.  The goods, including containers and vehicles used in connection with their transport as well as vehicles used in the haulage will be confiscated.

Thailand has not issued sanctions in response to the ongoing crisis in the Ukraine.

The Trade Controls of Weapons of Mass Destruction Act B.E. 2562 (2019) (“TCWMD Act“) and the Notification of the MOC Re: Measures for the Purpose of Control of Goods Related to the Proliferation of WMD and Measures Related to the Goods with a Reasonable Doubt of the End Use or the End User Related to the Proliferation of WMD B.E. 2564 (2021) dated 11 October 2021, also known as the Catch-all-Control notification (“CAC Notification“), have been issued to set out the general rules regarding the exports, re-exports, transshipments, transit, and technology and software transfer of dual-use goods.

The TCWMD Act and the CAC Notification do not require an exporter to obtain a license for export, re-export, transit, transshipment, and transfer of any item or technology of DUI in general cases. However, in the case where there is a risk of proliferation of WMD, the DFT has the power to “block any shipment of dual-use goods (or any goods which may be dual-use goods, and also include the transfer of technology and software) that will be delivered to a high-risk end-user.”

The anti-dumping measure is the most commonly used trade measure in Thailand. The products that are usually subject to anti-dumping measures (as well as other trade remedy measures) are steel products (hot-rolled steel, cold-rolled steel, carbon steel, steel plates, tubes).  Other products include chemicals (citric acid, nitric acid, sodium triphosphate), paper, flooring tiles, glass blocks, etc. The countries that are commonly subject to the trade measures, although depending on the subject products, include the People’s Republic of China and Republic of Korea, as well as the Socialist Republic of Vietnam.

Currently, Thailand has imposed a total of 22 anti-dumping measures, with 3 cases under sunset review.

In 2024, Thailand imposed new 3 anti-dumping measures that are currently in the investigation process: (i) Extruded aluminium products originating in the People’s Republic of China (anti-dumping investigation initiated on 16 July 2024), (ii) Cold-rolled stainless steel in coil, sheet, and strip forms originating in the Republic of Vietnam (anti-dumping investigation initiated on 26 September 2024), and (iii) Hot-rolled structural steel with an H-shaped cross-section originating in the People’s Republic of China (anti-dumping investigation initiated on 14 November 2024).

Additionally, in August 2024 Thailand imposed its first anti-circumvention measure on flat hot-rolled steel in coils and not in coils with added alloy elements originating from China.  Please see more details in item 16.

Thailand has conducted safeguard measure investigations and/or imposed safeguard measures in approximately 10 cases.  However, at present, all imposed safeguard measures have already been terminated.  Therefore, there are no on-going safeguard measures imposed by Thailand.

Thailand has never initiated or imposed a countervailing measure.

In Thailand, trade remedies proceedings are regulated by the Anti-Dumping and Countervailing Act B.E. 2542 (1999) (“AD Act”) and the Safeguard Measures on Increased Imports Act B.E. 2550 (2007) (“Safeguards Act)”.   The AD Act was most recently substantively amended in 2019 by the Anti-Dumping and Countervailing Act (No. 2) B.E. 2562 (2019), with the key amendments intended to enhance consistency with the WTO legal framework and to implement an anti-circumvention measure (“AC Measure”) to impose additional duty on the practices used by producers, exporters or assemblers who avoid payment of anti-dumping or countervailing duties.

The Department of Foreign Trade (“DFT”), which is under the auspices of the MOC, is the direct regulator for trade remedies proceedings in Thailand. Further information can be found on its website at https://www.thaitr.go.th/th/home.

The following persons can petition the DFT for the commencement of trade remedies proceedings.

Anti-dumping (“AD”) proceedings

Anti-dumping proceedings can be commenced by the DFT itself or through the petition of persons regarded as part of the domestic industry.

If the petition is made by petitioners other than the DFT, the petitioners must establish that the petition is supported by domestic producers whose collective production is more than 50% of the total production of those in the domestic industry expressing either support for, or opposition to, the petition. In any case, the total production of domestic producers that support the petition must not be less than 25% of the total production of like products produced by the domestic industry.

Safeguard proceedings

Petitioners must establish that both:

• They produce like or directly competitive products to those products that are the subject of the investigations; and
• Their products represent at least 25% of the domestic production for such products.

 Countervailing duty (“CVD”) proceedings

The requirements to commence CVD proceedings are the same as for anti-dumping proceedings (see above).

Anti-circumvention (“AC”) proceedings 

AC proceedings can be commenced by the DFT itself or through the petition of a person or a group of persons acting on behalf of domestic manufacturers of subject goods which is supported by manufacturers producing not less than 25% of total domestic production quantity.

Rights of foreign exporters

The DFT must give exporters of the products under investigation an opportunity to defend themselves.

In conducting anti-dumping, CVD, AC and safeguard proceedings, the DFT must inform all interested parties (which include foreign producers and foreign exporters of the relevant products) of the initiation of the investigation. The DFT will request the interested parties to comment or provide information on the subject of the investigation. The DFT will also send questionnaires to the interested parties and use the information provided in such questionnaires in its decision to impose measures (or not). In addition, the DFT will arrange an oral hearing so that the interested parties can meet and present their views and arguments to the DFT. However, the DFT will not answer any questions during the hearing process. Before the DFT issues any final determination on the measure, the DFT will send a draft determination for all interested partied to comment on, and another oral hearing may be held on this occasion.

Following a substantive amendment to the AD Act in 2019, a new trade measure proceeding was put in place to impose additional duty against the circumvention practices used by producers, exporters or assemblers who avoid payment of AD/CVD duties so imposed, which is referred to as an “AC Measure”.

Pursuant to the AD Act, there are five forms of circumvention, namely, (i) slight modification, (ii) transshipment, (iii) channeling, (iv) completion, and (v) assembly operations.

If circumvention is found, the DFT (by the Committee on Dumping and Subsidy) would publish a notice to extend AD/CVD duties to the product under investigation at a rate no higher than the residual rate. Not all products from all countries will be subject to AD/CVD duties at the same rate.

If no circumvention is found, the case would be terminated.

Relevant notifications and rules concerning AC investigation and proceedings became effective in March 2021, with interested persons able to file a petition to initiate an AC investigation.

Thailand issued its first determination in an anti-circumvention investigation on 2 August 2024 in the Committee on Dumping and Subsidies’ Notification of Determination (“Notification”). The DFT conducted the investigation over concerns that 17 Chinese steel companies were potentially circumventing anti-dumping measures over the import of flat hot-rolled steel in coils and not in coils by adding alloy elements, thus allowing these to be classified under different tariff codes. In this case, the committee reviewed the evidence and determined that the import of such goods involves circumvention through a slight modification of flat hot-rolled steel in coils and not in coils to avoid duties, without changing the product’s essential characteristics.

Consequently, the DFT has issued the Notification to expand anti-dumping measures to cover flat hot-rolled steel in coils and not in coils with added alloy elements under the 17 tariff codes indicated in the Notification. This marks the first time that Thailand has imposed an AC measure on such products.

AD Measure

Pursuant to the AD Act, as last amended substantively in 2019, Thailand can impose an AD measure on the Thai imports of a particular exporter when it has established three elements:

1. there is dumping of products by an exporter in the market (Section 13 of the AD Act defines dumping as the “introduction of merchandise into the commerce of Thailand at an export price below its normal value”);
2. there is injury to a domestic industry (Section 19 of the AD Act defines injury as (i) material injury to a domestic industry, (ii) threat of material injury to a domestic industry or (iii) material retardation of the establishment of a domestic industry); and
3. a causal link between (a) and (b).

The outcome of an AD measure is that an additional rate of duty (i.e. an AD duty rate) may be imposed on imports of the subject products into Thailand by a specific exporter for a period of up to 5 years.  This period may be extended by further 5 year periods following what is known as an “expiry review” or “sunset review”.

A determination to impose any AD measure shall include a consideration of the interests of the domestic industry, consumer, and public interest.

Safeguard Measure

Pursuant to the Safeguard Act, Thailand can impose a safeguard measure on the imports of a particular product when it has established three elements:

1. a sufficient increase in imports of the product;
2. there is injury to a domestic industry (Section 3 of the Safeguards Act defines injury as serious injury or threat of serious injury to the domestic industry producing like or directly competitive products); and
3. a causal link between (a) and (b).

During the investigation, the authority shall offer an opportunity to the importer, the exporter and other persons with vested interests to present evidence, documents, and to express opinions supporting or objecting the application of the applicant, whereby it shall at least show that whether such application is beneficial to the general public.

The safeguard measure may be prescribed by one or several measures at the same time, as follows:

4. collection of safeguard duty at rate so fixed;
5. limit of imported quantify; and/or
6. measures other than (a) and (b) which result in reducing or limiting the quantity of imports.

The safeguard measure shall be enforced for a period of time deemed necessary with the purpose to prevent or to remedy the damages of the domestic industry and allow it to have time for adjustment, but in no case shall it exceed 4 years from the date of enforcement.    The safeguard measure may be extended as necessary; however, the total period of enforcement, which includes all previous enforcement periods, shall not exceed 10 years.  Where the safeguard measure has an enforcement period of more than 1 year, the said measures shall be gradually relaxed.

CVD Measure

Under the AD Act, Thailand can impose a CVD measure on the Thai imports of a particular exporter when it has established three elements:

1. there is a specific subsidy for export for certain companies or industries or in specific regions so that the use of domestic products is more than imported products;
2. the enterprise that receives the subsidy has obtained benefits from the projects of the Government of the country of origin or exporting country; and
3. the domestic industry has suffered from the import of subsidised products.

The DFT shall request consultation with the country granting or maintaining a subsidy in accordance with the methodology and procedure as set out by the WTO.  The Committee on Dumping and Subsidy shall determine a remedy as appropriate.

A determination to impose any CVD measure shall include the consideration on the interests of the domestic industry, consumer, and public interests.

AC Measure

In order to impose the AC measure, the following 5 conditions must be satisfied:

1. there is change in pattern of trade;
2. there is at least one form of circumvention
3. there is insufficient due cause or economic justification rather than imposition of AD/CVD duties;
4. the remedial effects of the AD/CVD duties are being undermined in terms of the prices or quantities; and
5. there is evidence of dumping or subsidy.

A determination to impose any AC measure shall include the consideration on the interests of the domestic industry, consumer, and public interests.

The AD Act prescribes a right of appeal against AD, CVD and AC determinations to the Central Intellectual Property and International Trade Court within 30 days of the determination.  Further appeal lies to the Court of Appeal for Specialised Cases and then to the Supreme Court if the relevant criteria for submission of an appeal are met, or if leave to appeal is granted.

As the Safeguards Act does not contain a specific provision on appeal, it would be necessary to appeal against a determination to the Central Administrative Court, with further appeal to the Supreme Administrative Court.  Administrative law provisions and procedures would apply under the Act on Establishment of Administrative Courts and Administrative Court Procedure B.E. 2542 (1999).

There have been no recent challenges to Thailand’s imposition of any trade remedies at the WTO.

On 6 April 1998, Poland requested consultations with Thailand concerning the imposition of final anti-dumping duties on imports of angles, shapes and sections of iron or non-alloy steel and H-beams. Poland asserted that provisional anti-dumping duties were imposed by Thailand on 27 December 1996, and a final anti-dumping duty of 27.78% of CIF value for these products, produced or exported by any Polish producer or exporter, was imposed on 26 May 1997. Poland further asserted that Thailand refused two requests by Poland for disclosure of findings. Poland contended that these actions by Thailand violate Articles 2, 3, 5 and 6 of the Anti-Dumping Agreement.

On 13 October 1999, Poland requested the establishment of a panel. At its meeting on 27 October 1999, the Dispute Settlement Body (“DSB”) deferred the establishment of a panel.

Eventually, on 21 January 2002, the parties informed the DSB that they have reached an agreement to the effect that the implementation of the recommendations of the DSB in this dispute should no longer remain on the agenda of the DSB.

More details can be found on WTO | dispute settlement – the disputes – DS122

The main legislation relating to customs law in Thailand are as follows:

• Customs Act B.E. 2560 (2017) (Customs Act)
• Export and Import of Goods Act B.E. 2522 (1979), as amended (Exim Act)
• Other import and export requirements may be set out in specific legislation (e.g., the Hazardous Substances Act B.E. 2535 (1992), as amended (Hazardous Substances Act)).

Royal Thai Customs (“Customs”) is the authority that generally regulates imports and exports in Thailand. The DFT of the MOC is the main authority that determines the goods subject to import and export restrictions and supervises the approval process, unless the goods otherwise fall under the supervision of other authorities in accordance with specific laws.

Advance Ruling on Tariff classification.

If a HS Code cannot be identified or if there is some uncertainty, any person can submit a request for an advance ruling for customs tariff classification to the Customs Tariff Division, Customs. The letter informing the result of the advance ruling for customs tariff classification shall be effective for a period of 3 years from the issuance date of such letter.

Advance Ruling on Customs Valuation.

If there is some uncertainty on the valuation of imported articles, any person can submit a request for an advance ruling on customs valuation to the Customs Tariff Division, Customs. The letter informing the result of the advance ruling for customs valuation shall be effective for a period of 3 years from the issuance date of such letter.

Disputes

Notice of Assessment.  Customs is entitled to reassess duty and tax. After re-assessment of the duty and tax, Customs will issue a Notice of Assessment to an importer. Once the Notice of Assessment has been received, the importer is required to pay the amounts stated in the Notice of Assessment within thirty days unless there is an approval from the Director General to delay the payment.

Appeal against the Notice of Assessment.  Where Customs has issued a Notice of Assessment and the importer disagrees with such assessment, the importer has the right to appeal to the BOA within 30 days of the receipt of the Notice of Assessment.

Further appeal against the BOA ruling.  Where the BOA has issued its ruling and the importer disagrees with such ruling, the importer has the right to appeal against such ruling by filing a complaint with the Tax Court within 30 days of the receipt of the ruling of the BOA.

The classification of goods is set out under the Customs Tariff Decree B.E. 2530 (1987), as amended. This classification system is adopted from the ASEAN Harmonized Tariff Nomenclature, which is also an eight-digit classification system used by all ten ASEAN member countries. This is, in turn, based on the Harmonized System (“HS”) developed by the WCO. The current HS system implemented by Thailand is HS2022.

In order to determine the appropriate HS codes for their products, importers can refer to Customs’ online database at http://itd.customs.go.th/igtf/viewerImportTariff.do?param=langEn , or simply consult with Customs officials on their hotline (in Thai): 1164.  It is also possible to seek an advance ruling on classification.

a. Authorised Economic Operator (AEO) or equivalent programme?

Thailand has an Authorised Economic Operator (“AEO”) program that provides certain benefits to operators with this status, e.g. inspection exemptions, expedited refund procedures, and limited audit periods. There are also benefits in dispute situations, e.g. where the AEO is able to request a stay of duty payment without placing a guarantee prior to appeal.  The Trade Facilitation measure for AEO has been developed based on WCO Standards and WCO tools.

Both (a) importer/exporter and (b) customs broker can obtain an AEO status.

For importer/exporters, the applicant must be a juristic person registered under Thai law with a minimum paid-up capital of no less than THB 5 million (approximately USD 140,000). Upon obtaining AEO status, such person must enter into a guarantee agreement with Customs and provide a bank guarantee or other approved security in the amount of THB 1 million (approximately USD 28,000).

For customs brokers, the applicant must be a juristic person registered under Thai law with a minimum paid-up capital of no less than THB 1 million (approximately USD 28,000). Upon obtaining AEO status, such person must enter into a guarantee agreement with Customs and provide a bank guarantee or other approved security in the amount of THB 2 million (approximately USD 56,000) but no more than THB 10 million (approximately USD 280,000).

The AEO application can be submitted online via https://tas.thainsw.net/.

b. Mutual recognition arrangements (MRAs) with other jurisdictions in relation to their AEO programmes?

Thailand has expedited its entry into AEO Mutual Recognition Arrangements (“AEO-MRA”), which include: Hong Kong in 2015, Republic of Korea in 2016, Singapore in 2018, Australia in 2021, Japan in 2022, and New Zealand in 2023.

In September 2023, ASEAN announced that all 10 Customs Administrations of ASEAN Member States signed the ASEAN AEO MRA (“AAMRA”), which provides assurance that the certification standards that the ASEAN member states apply within their respective AEO programmes are compatible and in accordance with the WCO’s SAFE Framework of Standards to Secure and Facilitate Global Trade (SAFE Framework).

c. Suspension of duties on any goods imports (for example, for goods for which there is no domestic production)?

• If goods are exported within one year after the date of importation, the importer is entitled to request a refund of the paid duty for such items in an amount representing the nine-tenths portion, or the portion exceeding THB1,000 of the amount which has been collected by calculating upon each export entry.
• If goods are imported for the purpose of production, mixing, assembly, packing or processing in any manner, and are subsequently exported, subject to the fulfilment of relevant conditions, the importer is entitled to request a duty refund.
• Duty savings or deferral programs may be available in limited circumstances, such as the import of goods for exhibition purposes and for use as samples without a commercial value.
• The BOI provides tax and duty privileges to companies that are eligible to receive “investment promotion” under the BOI Act. Specifically, they are entitled to receive exemption or reduction of import duty rates on machinery and/or materials imported, provided that such imports are for use in the approved project and comply with any relevant conditions and procedures.
• Free trade agreements may also provide preferential tariff rates.
• Please see question 24 below on bonded warehouses, duty free zones, free trade zones and special zones.

d. Allowing goods imports valued below a certain amount to enter duty free (de minimis shipments)?

Imported goods with a value not exceeding THB1,500 (approximately USD42.50) are exempted from duties.

Thailand has been deliberating for some time the enactment of legislation to remove the value-added tax (“VAT“) exemption available to imports valued at less than THB1,500. The discussion has centred on addressing concerns of small and medium enterprises (SMEs) and local businesses regarding the proliferation of low value e-commerce goods which enter the country and are VAT-exempt.

On 19 June 2024, the Ministry of Finance issued the Notification on the Exemption of Customs Duties for Items Valued at no more than THB1,500 (“Notification“) approving the imposition of 7% VAT on all imports, with effect from 5 July 2024 to 31 December 2024. The Notification was issued under Section 12, paragraph one of the Customs Tariff Decree B.E. 2530. The imposition of VAT on all imports will be collected by the Customs Department of Thailand at the time of import, together with the import duties (if not eligible for exemption).

The Customs Act provides for the establishment of bonded warehouse, free zones and duty-free zones.  The establishment, operation and customs formalities of a duty-free zone are regulated under the Customs Act B.E. 2550 (2017) (“Customs Act“).

Bonded Warehouses

The establishment of bonded warehouses is permissible and regulated by the Customs Act.

There are several categories of bonded warehouse, each of which is subject to different entry and bond requirements. For example, a General Bonded Warehouse; a Bonded Warehouse for displaying or exhibiting purposes; a bonded warehouse used as a production facility; and a bonded warehouse for raw materials and equipment used in factories.

Duty Free Zones

The Customs Act provides for the establishment of duty-free zones which are exempt from import duty in specified cases.

Free-Trade Zones

The establishment and operation of free-trade zones is regulated under the Industrial Estate Authority of Thailand Act B.E. 2522 (1979) (“IEAT Act”). However, the customs formalities imposed on a free-trade zone are the same as those imposed on a duty-free zone.

Special Zones

Thailand has a number of Special Economic Zones (“SEZs”) enjoying privileges under the provisions of the Investment Promotion Act (the “BOI Act”), which is the primary legislation in respect of the tax and non-tax privileges granted by the BOI, which may include exemptions on import duty. However, the details of such privileges may also differ from the standard BOI privileges as each SEZ is subject to its own subordinate law.

Another key zone is that of the Eastern Economic Corridor (“EEC”).  The Eastern Special Development Zone Act B.E. 2561 (2018) (“EEC Act”) is the primary legislation used for the systematic development of the areas in the east of Thailand to be in compliance with the principle of sustainable development. In this respect, the provinces of Chachoengsao, Chonburi, Rayong and any other areas in the east of Thailand prescribed by the Royal Decree shall be designated as the Special Eastern Development Zone (“EEC Area”).

With regard to import and export activities, Section 57 of the EEC Act authorizes the Eastern Special Development Zone Policy Committee to issue notifications regarding exemptions for importers and exporters operating a business in the EEC Area from complying with the laws on customs, whether in all or some parts.

The Thai Constitution (2017) requires parliamentary approval of agreements which may have a significant effect on the security of the economy, society, or trade or investment of the country, such as, treaties pertaining to free trade, common customs union, etc. As the Constitution also requires the enactment of a law prescribing procedures for the public to participate in the expression of opinions and obtain remedies from the effects of such treaty, a draft law was issued to this effect in mid-2022 but is yet to be enacted.

Thailand applies a dualism system, therefore obligations under trade agreements must be implemented into Thai law in order to be fully enforceable.

Complaints by local traders against foreign measures inconsistent with the WTO and/or FTA rules are typically submitted with the DFT, which is under the auspices of the MOC, but may also be submitted with other relevant government departments.  There is no formal procedure for such requests for government action.