Bangkok: The Customs Department is moving forward with adjustments to tighten controls on the influx of cheap goods into the country. Preparations are underway to increase import taxes on goods valued at less than 1,500 baht and to strengthen the utilization of free zone privileges in order to reduce problems of fraudulent claims and false declarations of goods.
According to Thai News Agency, Mr. Panthong Loykulnan, Director-General of the Customs Department, stated that the Customs Department is preparing to revise customs regulations to reduce the influx of cheap imported goods into the country. This will be achieved by establishing a formula for calculating the proportion of domestically produced goods (local content for goods in duty-free zones) that are exempt from taxes under the ASEAN preferential treatment framework.
It is acknowledged that loopholes have recently allowed foreign products to alter packaging without using domestic raw materials and labor as intended, significantly impacting Thai SMEs. Therefore, the Customs Department is preparing to revise criteria to prohibit the inclusion of "profits" or "price differences" in the calculation of "domestic value added" for claiming import duty refunds and utilizing benefits in free zones.
The Customs Department is also preparing to discuss with the new government the possibility of increasing import duties on goods purchased through e-commerce platforms. Currently, duties are collected based on product tariffs, averaging 10-30%, building upon the cancellation of import duty exemptions for goods valued at less than 1,500 baht.
Previously, revenue collected from import taxes on goods increased by 300 million baht from the first baht in just 20 days after the new regulations were implemented.
In addition, a proposal is being prepared to increase penalties for falsely declared goods, such as e-cigarettes. Currently, the penalty is confiscation of the goods and a fine based on the value printed on the box. The proposed change would be confiscation of the goods and a fine per item, aiming to reduce discretionary assessments of fines and use the fine money to cover the costs of destroying the confiscated goods, thereby improving the efficiency of managing seized items.