1
TARIFF MEASURES
Structure
of the tariff schedule
Thailand applies a six-digit
tariff nomenclature according to the Harmonized Commodity Description and
Coding System (HS 96). However, in order to accommodate the need
under the national customs tariff policy, some HS six-digit subheadings
have been subdivided into seven-digit level.
Tariff
publications
Current information on customs
related matters is available from the Customs Department, Sunthornkosa
Road, Klong Toey, Bangkok 10110
Tariff
rates
| 12 |
Most duties are ad valorem,
although some are specific and others are both ad valorem and specific.
At present, there are generally six duty rates for imported goods: 0% for
medical equipment and fertilizers; 1% for raw materials, electronic components,
and vehicles for international transport; 5% for primary products and capital
goods; 10% for intermediate products; 20% for finished products; and 30%
for government protected goods. Selected goods affecting protected
industries are excluded from the tariff system. Rates range up to
60% on agricultural goods and food products, alcoholic beverages, refrigerators,
and air conditioning machines. Rates of 80% or 100% apply to fabrics
and clothing, respectively. Peak rates of 200% are set on motor vehicles.
The Ministry of Finance plans to streamline the existing six-rate tariff
structure to three, with imported raw materials taxes at 1% and intermediate
and finished goods at 5% or 10%. |
| 13 |
Thailand has fully implemented
the Uruguay Round Final Schedule on tariff concessions. In agriculture,
Thailand has progressively reduced tariffs on 746 items, which must be
reduced by 24% by 2004 as scheduled. Thailand is also a member of
the Ministerial Declaration on Trade in Information Technology Products
(ITA-1). Under the Normal Track of the ITA-1, Thailand has eliminated
tariffs on 153 categories of products (including computers, calculators,
transistors, and machinery and equipment in the manufacturing of semiconductors)
in the year 2000. Currently, Thailand is in the progress of removing
tariffs on the Slow Track on 37 additional products to zero by 2005 including
fax machines, pocketbook computers, answering machines, and fibre optic
cable. |
| 14 |
Tariff quotas established
on 23 agricultural products under the WTO Agreement on Agriculture can
be divided into two groups. The first group comprises a number of
traditional export commodities such as rice and coconuts. The second
group consists of imports competing with domestic production (i.e. oilseeds
and maize), but required in large quantities by the processing industry.
When domestic production is not sufficient to meet demand, volumes of these
imports may not only exceed the tariff quota volume specified in the Agreement,
but also enter at duty-free or applied rates lower than either the in-quota
or out-of-quota bound rates. Despite the tariff quotas, soybeans
are allowed to be imported free of duty, provided that specific domestic
purchase requirements are met. |
| 16 |
Exceptions to the obligation
to pay customs duties apply to the importation of machinery, equipment
and materials for the use by oil and gas concessionaries and their contractors.
As a part of the Board of Investment's
(BOI) Investment Promotion Incentives, BOI-promoted companies are eligible
to receive exemptions or reductions from import duties on raw and essential
materials, and machinery for manufacturing use, effective from 1 August
2000. These facilities are generally based on the location of the
investments.
To facilitate the establishment
of industrial estates in Export-Processing Zones, the Industrial Estate
Authority of Thailand (IEAT) provides for exemption from import duties
and taxes on machinery, equipment, tools and components essential for the
production of goods destined for export, and on materials used for construction
of factories or buildings. IEAT also provides assistance to industrial
estates in General Industrial Zones for the production of goods destined
for domestic and/or export consumption.
Effective in July 2000, the
Cabinet has approved import tariff reductions on 542 industrial raw materials
to boost the export for competitiveness of Thai manufacturers. Additional
tariff cuts to around 1% in 2001 cover some 217 tariff lines including
raw materials used across a range of industries. In a related issue
of 13 August 2002 to boost the competitiveness of local industries, materials
used in producing chemicals, plastics, petrochemicals, and textiles are
eligible for duty reductions as follows: reduction to a flat rate of 1%
for raw materials and 5% for semi-finished goods, down from 20-30% where
they currently range.
Parts and accessories of aircrafts
or vessels including materials imported to be used for repair or construction
of aircrafts or vessels are exempted from duty payment. |
| 19.1 |
Thailand is a member of the
Global System of Trade Preferences (GSTP) and provides preferential margins
of 10-20% on 11 tariffs lines, including products iron, pumps, and generators. |
| 19.2 |
Thailand is a member of the
Association of South-East Asean Nations (ASEAN), along with Brunei Darussalam,
Indonesia, Malaysia, the Philippines, and Singapore. Vietnam joined
in 1995, Laos and Myanmar in 1997, and Cambodia in 1999. ASEAN decided
in 1992 to establish an ASEAN Free-Trade Area (AFTA) by the year 2008,
later brought forward to 2003 for the six original founding members.
The Agreement on the Common Effective Preferential Tariff (CEPT) Scheme
forms the core mechanism for the implementation of intra-ASEAN tariff reductions
on products originating from ASEAN member states. In December 1998,
the ASEAN members decided to accelerate the completion of the ASEAN Free-Trade
Area by one year, from 2003 to 2002. On 1 January 2002, the six original
founding members began implementing AFTA by reducing tariff rates to 0-5%
of all items in the Inclusion List (IL), but with some flexibility.
The Inclusion List refers to those products which are scheduled for tariff
reduction, removal of quantitative restrictions and non-tariff barriers.
Tariff rates on these goods will be reduced to 0% by 2010. Vietnam
will complete the initial tariff reductions by 2003, Laos and Myanmar by
2005, and Cambodia by 2007. These four countries will complete final
reductions to 0-5% by 2015. ASEAN member countries are working towards
the elimination of import duties on all product lists (Inclusion List,
Temporary Exclusion List, Sensitive List, and General Exception List) to
achieve a free-trade area by the year 2015 for the six original founding
members, and by the year 2018 for the new members of ASEAN. The Framework
Agreement on ASEAN - China Comprehensive Economic Cooperation of 4 November
2002 is aimed at broadening the free-trade area between ASEAN countries
and China. According to the Framework, the tariff cut will start
on 1 January 2005 and complete in 2010 for the original six ASEAN countries
and China, and in 2015 for the new ASEAN countries. The first sector
to process the tariff cut covers agricultural products including meat,
fish, seafood products, vegetables, fruit, and milk products.
In December 1998, ASEAN member
states decided to expand access to the 1996 Basic Agreement on the ASEAN
Industrial Cooperation (AICO) Scheme, which promotes joint manufacturing
industrial activities between ASEAN-based companies. AICO provides
tariff preferences on inputs sourced in the region.
Thailand is a participant in
the East Pacific Economic Cooperation (APEC) forum, formed in 1989.
The objective of the agreement is to implement free trade among the member
countries by the year 2020, with advanced industrialized countries realizing
the goal by the year 2010. Individual action plans for each member
country were established to outline a path to the goal. On 10 November
2000, APEC leaders agreed to EVSL (early voluntary sectorial liberalization)
in 15 sectors, that is liberalization before the agreed goals of 2010 or
2020, respectively. |
2
PARA-TARIFF MEASURES
Customs
surcharges
| 21 |
Under Section 49 of the Investment
Promotion Act (1977), the Board of Investment (BOI) has the power to impose
import surcharges which cannot exceed 50 per cent of the import price of
the goods concerned, and are limited to a one-year period with the possibility
of renewal.
Currently, certain product-specific
surcharges continue being imposed on corn for animal feed, and soybean
cake. A 10% surcharge applied to all imports bearing duties of 5%
or more was abolished on 10 August 1999. At present, such surcharges
only apply to motor vehicles and a few other items. |
Additional
charges
| 22.8 |
The interior tax (or municipality
tax) is levied on products subject to excise duties at a rate of 10% of
the excise tax. |
International
taxes and charges levied on imports
| 23.1 |
In April 1999, the value added
tax on goods and services was temporarily reduced from 10% to 7%.
Plans to reinstate the 10% VAT rate on 30 September 2002 have been delayed
for another year until 30 September. VAT is levied on most imported
goods with exemptions only for published materials and books, unprocessed
agricultural products, livestock, and agricultural inputs such as fertilizers
and feed, and goods exempt from import duties under the Industrial Estate
Authority of Thailand (IEAT) Act. |
| 23.2 |
An excise tax is set on a
number of goods including petroleum products, alcoholic and non-alcoholic
beverages, electrical appliances, lead crystals, automobiles, yachts, perfumes,
wool carpets, motor cycles, batteries, and cigarettes. On 27 March
2001, excise taxes raised up to 30% on brandy, 45% on whiskey and other
types of liquor, 55% on beer, 60% on wine and sparkling wine, and 75% on
cigarettes. |
3
PRICE CONTROL MEASURES
Anti-dumping
measures
| 34.2 |
On 22 March 1999, the Anti-dumping
and Countervailing Act of Thailand was promulgated. It became effective
from 1 July 1999. Definitive duties in force as at 31 December 2001
apply to hydrogen peroxide from India, float glass from Indonesia, and
H-section from the Republic of Korea and Poland. |
4
FINANCE MEASURES
Restrictive
official foreign exchange allocation
| 43.2 |
Import transactions require
exchange control approval. The procedures differ according to the
method of payment. Most payments for imports may be approved by authorized
banks upon submissions of documents such as invoices, collection of bills
and import licenses (if required). A certificate of payment from
an authorized bank or the Bank of Thailand is required before Customs Department
will clear imported goods. |
5
AUTOMATIC LICENSING MEASURES
Import
monitoring
| 51 |
Thailand applies automatic
import licensing procedures in accordance with WTO agreements on intaglio
printing machines, colour copier machines, and machinery which can be used
to violate copyrights of cassette tapes, video tapes, and compact discs. |
6
QUANTITY CONTROL MEASURES
Non-automatic
licensing
Licensing under the authority
of
Ministry of Commerce (MOC)
The Department of Foreign
Trade
Thanon Samamchai, Pranakorn
Bangkok 10200
Under the Controlling Importation
and Exportation of Goods Act of B.E.2522 (1979), the Ministry of Commerce
has the authority to designate classes of goods as being subject to import
controls in the form of license requirements. Items under import
licensing may be divided into three categories: (1)
goods whose import is restricted to protect local industries; (2)
goods whose import is linked with the purchase of similar domestically
produced goods; and (3)
goods whose import is controlled for health, security and other reasons.
Since 1996, Thailand has abolished licensing requirements for eight products,
namely new motor cycles, high-speed diesel, benzine and other similar fuel
for engines, kerosene, naphta, LPG, vinyl chloride in any form, and all
products from Yugoslavia (Serbia and Montenegro). At present, 45
classes of controlled goods are subject to licensing requirements.
| 61.2 |
Worked monumental or building
stone may only be imported by the factory or government agencies under
import licensing for industry protection reasons. |
| 61.3 |
The importation of gunny bags
woven of jute or kenaf is not generally allowed, except under import licensing
to promote and develop local industries.
Imports of jute and kenaf are
permitted for use as raw materials to secure farmers' income, subject to
licensing requirements.
The importation of fish meal
with protein content less than 60% is not generally allowed, except to
help local fishermen sell their products at a reasonable price, subject
to licensing requirements.
To protect local industries,
marble, travertine, ecaussine and other calcareous monumental, building
stone and alabaster may be imported for use as raw material by the sole
factory under import licensing requirements.
For industry protection reasons,
six-wheeled buses, seating over 30, may only be imported for government
use and other defined conditions subject to licensing requirements.
Since October 1997, parts used
as inputs for electrical or mechanically operated gaming machines may be
imported with the approval of the Cabinet or Board of Investment (BOI),
but only for export production. |
| 61.4 |
Imports of silk and silk yarn
from China are under non-automatic licensing to protect the local industry
and to ensure that local-content requirements are met.
Thailand has requested a five-year
extension, until the end of 2004, for the use of local content requirements
applicable to imported ready-to-drink milk. |
| 61.71 |
For public health reasons,
non-automatic licensing applies to imports of used motor vehicles,
used six-wheeled buses (over 30 seats), used motorcycles, and used diesel
engines with displacement of 331-1100cc when imported for temporary entry
and re-export only, or when imported by public sector.
Non-automatic licensing also
applies to imports of ceramic food containers coated with lead, and clenbuterol
comprounds for public health reasons. |
| 61.74 |
For environmental protection
reasons, imports of plastic waste, parings, scrap, and used motor vehicles
are subject to licensing requirements. |
| 61.79 |
Imports of gold, coins, and
antiques are under non-automatic licensing for other reasons such as financial
security, protection against counterfeit, and protection of art. |
Quotas
| 62.7 |
Quantitative restrictions
in form of protection apply to the 23 agricultural and agri-food products
subject to tariff quotas. |
Phohibition
| 63.1 |
Imports of diamonds from Angola
are absolutely prohibited in conformity with the resolution of the United
Nations Security Council. |
| 63.4 |
The Ministry of Health may
impose temporary import prohibitions on animal products or products of
animal origin intended for human consumption from countries which have
a risk of Bovine Spongiform Encephalopathy (BSE) in order to protect consumers'
health. Animal feedstuffs which contain meat meals, bone meals and
blood meals may also be prohibited. |
| 63.71 |
Household refrigerators using
CFC in the production process are under an absolute import prohibition
for public health reasons. |
| 63.77 |
Under the Convention on the
Prohibition of the Development, Production Stockpiling and Use of Chemical
Weapons and on their Destruction, certain organic chemicals classified
as hazardous substances are prohibited for importation. |
| 63.78 |
An absolute import prohibition
applies to electrical or mechanically operated gaming machines in order
to protect public morals. |
8
TECHNICAL MEASURES
Standards
and technical regulations are the responsibility of
Thai
Inudstrial Standards Institute (TISI)
Ministry
of Industry
Rama
VI Street
Ratchathewi
Bangkok
10400
| 81.1 |
Since 1997, Thailand's industrial
standards are systematically based on international standards. Revised
criteria for conformity assessment procedures for product certification
provide for mandatory and voluntary standards.
Sanitary certificates are required
for imports of certain live animals and their products. A phytosanitary
certificate is needed for imports of most plants and plant materials.
Uncut diamonds from Sierra
Leone require a certificate of origin issued by the government of Sierra
Leone.
Certain types of food are required
to be processed in accordance with specified production methods.
Importers shall provide certificates of satisfaction of these arrangements.
Imports of food and tobacco
products, cosmetics, drugs and narcotics, feedstuffs, fertilizers, hazardous
substances, live animals, plants, seeds, medical devices, and psychotropic
and volatile substances are regulated by quality and safety requirements
implemented by Thailand's Food and Drug Administration (TFDA), under the
Ministry of Health.
Regulated imports are subject
to registration requirements as in the case of pharmaceuticals. Product
registration is also mandatory for specifically controlled foods like processed
and packaged food items. In addition, analytical results of the product
as well as details on manufacturing processes and ingredients must be submitted
along with an application for registration.
Maximum residue limits have
been specified for 29 veterinary drugs.
Permissible limits of 3-MCPD
of 3-Chloro-1,2-propanediol have been established for seasoning products
made from the hydrolysis of fermentation of soybean protein.
Shrimps and processed shrimps
must be free from chloramphenicol.
Imports of some corn products
must be accompanied by the result of the food analysis or a certificate
stating that the product is free from Cry 9C DNA Sequence.
In 2000, Thailand adopted motorcycle
emissions regulations that are an amalgation of standards and tests used
elsewhere in the world. |
| 81.1/3 |
Good manufacturing practice
shall be applied for a number of products, i.e. vegetable oils, chewing
gum and candy, meat products, ice cream, ghee, flavouring agents, fermented
egg, drinking water, cooking brine, butter, bread, jam, jelly and marmalade
in sealed containers, honey, cheese, cream, margarine, fats and oils, vinegar,
soybean protein, certain sauces, mineral water, soybean milk in sealed
containers, coffee, tea, electrolyte beverages, beverages in sealed containers,
milk and milk products, poultry and eggs, and food for special purpose.
In addition, these products are subject to labelling requirements. |
| 81.3 |
Food products in general are
subject to labelling requirements in Thai or English language containing
information on essential ingredients, preservations, food colour, food
enhancer, sweetener agents, flavour, etc. as the case may be, date, month,
year of manufacture, and expiry date.
Nutritional labelling is mandatory
for foods that make a nutrition claim, specifically target a group of consumers
e.g. elderly people, or other food as may be specified by T.F.D.A., effective
from 8 December 1998.
Specified vegetables and derived
products obtained through certain techniques of genetic engineering are
subject to labelling requirements.
Certain types of food products
for which food serial numbers are required are listed under notification
of Ministry of Public Health (No. 221) B.E.2544 (2001).
The label of food containing
ginkgo and ginkgo leaves extract shall bear the following statement: "May
inhibit clotting" and "children and pregnant women".
Food containing aloe shall
contain the following statements: "Should not be taken by children", "Not
medical food" and "Stop consumption when there appear abnormal symptoms"
in red letters of a specified size clearly visible.
The importation of borax is
subject to labelling requirements bearing the following warning: "Dangerous,
may cause kidney failure, prohibited to be used in food" in red letters
larger than other letters.
In conformity with a Ministerial
Rule on product composition of August 1997, tobacco importers will have
to notify all cigarette and cigar ingredients by brand.
Health warnings under the Tobacco
Product Control Act, B.E.2535 (1992) have been replaced and redesigned
to picture warnings in conformity with the draft notification of the Ministry
of Health (No. 7) B.E.2545 (2002). |
| 81.5 |
Quality assessment testing
and sampling takes place systematically for products subject to mandatory
standards at the expense of the importer. Foreign factories that
have received ISO 9000 certification and whose product testing has been
carried out by laboratories accredited by bodies having a mutual recognition
agreement with Thailand will be exempt from sampling and testing for each
import.
Quarantine restrictions on
animals and their products are under the preview of the Department of Livestock
Development of the Ministry of Agriculture and Cooperatives. The
Department of Agriculture is responsible for quarantine restrictions on
edible and inedible plants. |
|