Customs Department to Implement New Import Duty Measures to Boost Revenue

Bangkok: The Customs Department is gearing up to introduce import duties not exceeding 1,500 baht, a move anticipated to enhance revenue by 3 billion baht, alongside VAT, to support the proliferation of online products. Furthermore, the department aims to reduce rewards for the arrest of executives with a C8 or higher status, aligning with the “Customs Quick Big Win” policy.

According to Thai News Agency, Mr. Panthong Loikulnan, Director-General of the Customs Department, emphasized the department’s commitment to the government’s “Customs Quick Big Win” policy, with a target to achieve visible results within four months. The initiative focuses on stimulating the economy through customs measures, revising obstructive regulations for imports and exports, and accelerating refunds of tax, deposits, and compensations to enhance business liquidity. Large refunds, in particular, require swift processing.

Thailand faces international scrutiny over copyright infringements despite not producing pirated goods, as 20% of its exports are to the United States. In response, the Customs Department has annulled rewards for illegal goods seizures, effective since November 1986, to demonstrate sincerity in addressing the issue. The decision impacts executives from C8 and above, whose involvement in case appeals led to conflicts of interest. Nonetheless, rewards remain available for the general public reporting wrongdoings.

To curb illegal goods, including counterfeit and substandard items, the department plans to sign memorandums of understanding (MOUs) with various platforms to regulate the sale of such goods using advanced technology for product inspection. Many countries already impose import duties of 1 baht or more on imports, consistent with VAT collection. These measures align with FTAs and international agreements, as demonstrated by the United States.

Scheduled discussions this Friday with major online platforms, including Shopee and Lazada, aim to finalize the approach, with implementation of import duties of 1 baht or more set for January 1, 2026. A lump-sum tax assessment, potentially 20-30%, based on customs tariffs, is projected to increase revenue by 3 billion baht annually. This requires amendments to ministerial regulations or emergency decrees to align with global standards.

Mr. Panthong highlighted the government’s recent imposition of a 7% VAT on mail-ordered goods starting at 1 baht. With online orders growing, and China as Thailand’s top trading partner, the government plans to levy additional import duties to complement VAT revenue. Importers declared goods for VAT not exceeding 1,500 baht, with approximately 30 billion baht in value across 200 million items projected for 2024, indicating ongoing growth.