Customs Department Implements New Import Duties to Boost Revenue

Bangkok: Customs officials are advancing with the implementation of import duties on goods under 1,500 baht, with expectations to increase revenue to 3 billion baht. They have introduced the “Customs Quick Big Win” plan, which includes cutting executive bonuses and tightening controls on online goods.

According to Thai News Agency, the Customs Department is pushing forward with its “Customs Quick Big Win” policy to align with government guidelines, aiming to achieve results within four months. This strategy is designed to enhance customs regulations, facilitate the economy, imports and exports, and improve tax refunds for businesses, thereby increasing liquidity in the business sector.

Mr. Panthong Loikulnan, Director-General of the Customs Department, disclosed that a significant measure includes the collection of import duties on goods valued at less than 1,500 baht, which were previously only subject to a 7% Value-Added Tax (VAT). The new import duties will start at 1 baht and upwards, mirroring the tax systems of many countries, including the United States. The objective is to boost government revenue by over 3 billion baht annually.

The policy emphasizes the collection of a “lump sum” tax based on customs tariffs at a rate of 20-30%. Amendments to ministerial regulations or royal decrees are being considered to ensure compliance with international agreements. The policy is anticipated to take effect by January 1, 2026.

Moreover, the Customs Department plans to engage in discussions with major online platforms, such as Shopee and Lazada, on November 7th to exchange import information and establish guidelines for controlling illegal goods. An MOU is also being developed to use technology in detecting substandard or counterfeit imported goods.

Although Thailand is perceived as complicit in copyright infringement, it is not a direct producer. However, with 20% of its products exported to the United States, the country needs to demonstrate sincerity in adjusting its systems. Recently, the department canceled rewards for executives at level C8 and above, effective this November, to avoid conflicts of interest in appeals and various legal proceedings, which are estimated to be worth over 100 million baht per year. Nevertheless, members of the public who provide information on wrongdoing will continue to receive rewards.

Imports from China, Thailand’s leading trading partner, are valued at over 30 billion baht, or approximately 200 million items per year, and continue to rise. Therefore, it is essential to expand the tax base to support the growth of the e-commerce market and generate government revenue.