Problems relating to Trade and Investment on Thailand

 
9. Restrictive export/import trade, duty, and customs clearance
Issue
Issue details
Requests
Reference
(1) High Import Tariffs - GOT imposes 10% import tariffs on certain electronic parts, namely, ferrite bead chips, chip coils, sensors, buzzers, power supply, blue tooth module, saw filter and connector. The tariff rates are reduced to 0-1% on the other parts. The 10% import tariff materially weakens the international competitive edge of the Thai local manufacturers of finished products.
Furthermore, the decision base for the tariff rate varies by customs personnel in charge. In one case, after production of a vast amount of materials, nevertheless, the tariff rate was raised without any precise explanation.
There are cases where GOT levies high tariff rates on electronic parts not domestically manufactured in Thailand. This serves no meritorious purpose other than to debilitate the competitive edge of the manufacturers of finished products in Thailand.
Reference: Japan-Thailand FTA Tariff Rates:
-- Buzzer (HS: 8531.90), Category B: Reduced in stages and 0% in 2012.
-- Power Supply (HS: 8529.90), Repealed immediately (provided, however, that, HS: 8529.902, being in Category B, is reduced in stages until reaching 0% in 2012.
-- Power Supply (HS: 8504.21, HS: 8504.31), Category B, reduced in stages to and finally repealed to 0% in 2012.
- The Duty on clocks is high at 20%.
- It is requested that GOT expands the scope of import countries to which zero Import Duty applies.
- While zero import duty applies to single function projector (for being an ITA product), high import duty is levied upon multi-function projectors.		 - It is requested that GOT:
-- repeals the import tariff, and
-- elucidates the reasons for taxable or non-taxable items.
- It is requested that GOT reduces and repeals the duty on clocks.
- It is requested that GOT improves the investment environment by expanding the countries exporting to Thailand.
- It is requested that GOT takes step to:
(1)work for solution of the problems
(2)confirm and provide the latest information on ITA expansion, and
(3)continue to furnish information on further movements on this issue.
  (Action)
- On 10 January 2012, Thai Ministry of Finance (MOF) released officially (for implementation retroactive to 1 January 2012) Notification No. 15 (No. 0518/Wor 15), amending the previously released Notification, under Article 12 of Thai Customs Tariff Classification Act, concerning reduction or repeal of tariff rates.
- On 18 November 2012, Thai Prime Minister notified the U.S. President that Thailand would participate in the TPP negotiations.
  (Improvement)
- On 3 April 2007 The Japan-Thailand Economic Partnership Agreement (JTEPA) was signed and became effective on 1 November 2007.
-- Steel: All tariffs are repealed in 10 years. Tariffs are repealed immediately on hot rolled steel sheet (HRSS) where no production facility is operated or not possible to operate in Thailand. Quota for certain tariff-exempted-items is made available and for all the rest of the items tariffs are repealed in ten years. Immediate repeal represents 25% of the total export volume of 3.64 million tons, while quota for tariff exemption for HRSS is 950,000 tons, and tariffs are removed for the rest of the items after 5, 6, 9 and 10 years.
-- Automotive vehicles: Tariffs on 3000 cc or more - The going 80% will be reduced by 5% in stages from the first year until 60% is reached, and renegotiate in 2009. Renegotiation is due after 5 years on less than 3000 cc.
-- automotive vehicles parts: Tariffs on all items with going rate of over 20% are reduced to 20% in the first year and repealed after five years. Tariffs on all items with going rate of less than 20% are repealed after five years. Tariffs on the sensitive five items (engines and engine parts) are repealed after seven years.
-- Electric/electronic products: Tariffs are repealed within ten years without exception.
-- Chemicals: Tariffs are repealed within ten years without exception.
(Reference) For tariff rates, please refer to the website of MOF, Japan at: (http://www.mofa.go.jp/region/asia-paci/thailand/epa0704/annex1.pdf)
- According to the announcement of Minister of Ministry of Industry of 28 July 2008, BOI has exempted the import tariff on machinery and equipment imported for the express purpose of carrying out research and development at the Local General Headquarters (ROH).
- On 1 June 2009, Japan-ASEAN Comprehensive Economic Partnership was enforced as to Thailand.
- On 5 January 2012, for the purpose of relieving the enterprises that sustained damages from the severe flooding in October 2011, by Cabinet Decision, MOF published Notification to exempt import duty on replacement machineries, parts for repair of machineries, tools, automobiles and parts. For manufacture and assembly, etc. On 14 January Ministry of Industry (MOI) also released its Guideline for the basis and procedures for approving duty free import of replacement machineries, parts, accessories, and tools used for these machineries as a relief for the enterprises affected by the flooding. The Guideline was published in the Royal Gazette on 31 January. By virtue of this arrangement, during the period of 25 October 2011 through 30 June 2012, the subject goods may be imported duty free.
- On 15 May 2012, MOF published Notification to repeal tariffs on 80-items (HS8-digits) including gearbox, clutch and seatbelt out of the 100-items of automotive parts for which tariffs are due for repeal subject to "Completion of AFTA" under "Japan-Thailand Economic Partnership Agreement (JTEPA)".
- On 23 May 2012, Thai MOF released Notification No. 0518/Wor 351) concerning Amendment of the List of Tariffs (2012-2017) under the Japan/Thailand EPA (JTEPA) (entered into force retroactively on 1 April 2012). This Amendment (expedited reduction or repeal) mainly affects items classified under HS Code Chapters, 84, 85 and 87.
- With effect from 24 May 2012, Thailand Customs Department has additionally applied import tariff reduction on machineries and electrical appliance (Chapter 84: 49-items, Chapter 85:29-items, Chapter 90: 9-items).
(2) Non-Observance of Duty Repeal Schedule under Japan-Thai EPA - Under Japan-Thai EPA, GOT has committed to reduce tariff rates on car (HS8702-8705) or car parts (HS8708) for assembling car parts from 30% base rate to 20% upon enforcement of EPA, and 6-years after the enforcement date to 0%, coupled with the AFTA tariff abolition schedule. Originally, car parts for passenger cars are also subject to preferential tariff rates. However, GOT irregularly implements EPA by applying the tariff reduction only to pickup truck car parts. - It is requested that GOT discontinues implementing its own rules and observes the EPA to the letter. - Japan-Thai Economic Partnership Agreement (EPA)
(3) Nebulous Rules applied to Domestically Procured Parts in Thailand - Request filed with Office of Industrial Economics (OIE), Thai Ministry of Industry for renewal of the JTEPA application has come to a standstill, concerning products additionally processed and assembled at our member firm's subsidiary in Thai (MFS) from parts procured from Japan and domestically in Thai on the ground that the domestically procured Thai parts are not in conformity with the applicable rules under JTEPA.
The products in concern have already been manufactured in Thai under application of JTEPA. MFS is unable to secure the projected P&L.
[OIE's views]
(1)Domestically procured parts in Thai (DPPT) are allowable only to primary parts processing enterprises in Thai (PPPE).
(Supplementary Note) MFS procures the parts in concern from PPPE that consigns the processing work to another Thai enterprise.
(2)In addition, unless DPPT conforms to the JTEPA rules, application of JTEPA is disallowed on parts procured from Japan.
NOTE: MFS required Disclosure of OIE Rules. However, it has not yet materialised.		 - It is requested that GOT:
-- discloses logical explanation of its rules, as well as rules for application of JTEPA, and in review of the applicable rules,
-- provides FFEs with opportunities for exchange of dialogues, and ensures transparency by giving sufficient and reasonable explanation, and
-- overhauls the rules in a simple and clear-cut manner, eliminating all possibility for misinterpretation.
(4) Delayed Thai EU FTA Negotiation - The removal of Thailand from the EU's GSP scheme has increased the EU tariff burden upon Thailand exporters to EU. Consequently, the tariff removal, in lieu of GSP is much hoped for by the Thailand exporters. Nevertheless, the Thailand-EU FTA negotiation lags behind. - It is requested that got ratifies EU/Thai FTA as soon as possible.
- GOT expressed its intent of ratifying EU/Thai FTA by the end of 2014. If at all possible, it is requested that GOT expedites the negotiation so that ratification takes place in the 3rd quarter of 2014.
  (Action)
- On 23 June 2014, Thailand National Council for Peace and Order (NCPO), following the European Council's adoption of "Conclusion relative to the Political Status Quo after the Coup D'Etat", requested EU to put aside the EU-Thailand FTA negotiation, in light of the political status quo in Thailand.
(5) Incompatible Certificate of Origin Procedures between the 2- Countries under Thai/India FTA - A member firm's subsidiary (MFS) is unable to benefit from the preferential tariff rates on imports of parts under ASEAN-India Agreement on Trade in Goods due to the differences in interpretation or understanding of individual customs officials, despite the fact that application form is nailed down.
INDIA: Single application sheet may contain plural items to the extent they can be filled in that single sheet. Where the number of parts is numerous, these can be filled in as attachment to the single application sheet. Plural application sheets may not be used per invoice.
THAILAND: Attachments will not be accepted as official documents. Plural application sheets must be used where items are too numerous. However, this requirement does not agree with GOI's instructions. In this fashion, understandings are diametrically opposed between the Customs Authorities of two countries. Consigning preparation of the application documents to outside sources is prohibitively expensive. Because of these circumstances, it is not possible to file application and benefit from tariff preferential measures.		 - It is requested that the Customs Authorities of India and Thailand will work together in producing a manual to share the common understanding.
- Rather than individual applicants' wasting their time in visiting Ministries and Agencies to obtain approvals, it is requested that GOT streamlines and facilitates the application procedures through active use of web pages, allowing direct filing of application by individual applicants.		 - ASEAN-India Free Trade Agreement (AIFTA)
  (Action)
- On 8 July 2014, Thailand National Council for Peace and Order (NCPO) approved signing the ASEAN-India FTA (AIFTA) Service Investment Agreement.
(6) Arbitrary and Nebulous Decision of Customs Duty - WTO Agreement on Customs Valuation provides: "(1) The customs value of imported goods shall be the transaction value, (2) there shall be added to the price actually paid or payable for the imported goods royalties and licence fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable."
However, despite the absence of the special elements that the buyer must pay, DOC adds these elements and levies tax on them.
For example, our member firm, a manufacturer of machinery parts in Japan, holds a manufacturing subsidiary (MFS) in Thailand. Our member firm:
(1) receives payment of royalty from MFS as consideration for provision of technology and
(2) supplies MFS with knock-down parts (KD parts) for manufacturing machinery parts. DOC notified MFS that royalty paid for such KD parts is taxable. Much against its inclination, MFS filed amended tax return.
Then, our member firm has confirmed:
(a.1) the KD parts do not incorporate the intellectual property, which is the subject of the technical licencing agreement (TLA), and
(a.2) the imported KD parts have not been manufactured using the licenced intellectual property right under TLA, and
(b) In as much as TLA did include description on sale and purchase of imported KD parts, our member firm presumed that such description could be susceptible of interpretation as if payment of royalty comprises a condition for sales of imported KD parts. To avoid misinterpretation, our member firm amended the TLA with MFS.
However, DOC would not accept the results of the TLA amendment, and has continued levying tax on royalty, deeming existence of royalty relative to KD parts.
(Incidentally, since July 2012, similar amendment of TLA has resulted in non tax levied on deemed royalty upon KD parts by the PRC Customs).
- Depending upon the person in charge at customs, sometimes, their views vary on customs duty and accompanying incentive measures.		 - The state of affairs last reported continues without change so that Thai government continues its tax levy upon imported knock-down parts unrelated to royalty.
It is requested that GOT strictly adheres to the WTO GATT agreement,
-- adequately evaluates customs duty, and
-- refrains from levying customs duty on royalty, which is outside the scope of, tax levy.
- It is requested that GOJ takes step to work out to have GOT establish customs duty scheme unaffected by individual personal views.		 - Customs Law
- IFDS is unpublished Internal Rules of Customs
- Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994,
Article 1.1. The customs value of imported goods shall be the transaction value, that is the price actually paid or payable for the goods when sold for export to the country of importation adjusted in accordance with the provisions of Article 8, provided...(Ellipsis)
Article 8.1. In determining the customs value under the provisions of Article 1, there shall be added to the price actually paid or payable for the imported goods: ... (Ellipsis)...
(c) royalties and licence fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, (to the extent that such royalties and fees are not included in the price actually paid or payable.)
  (Action)
- Thailand Ministry of Finance Decree No.132, Article 9(1) provides: "Transaction price can be calculated by adding to the sales price (actually paid or payable) the royalty and licence fees paid directly or indirectly as condition of sales for the imported goods in concern". Where a member firm's subsidiary (MFS) must make remittance to its parent (member firm) in payment of licence fees and royalties, MFS requests the importer for submission of contract. It is said, however, that the customs investigator demands addition of licence fees and Royalties to the taxable value for customs duty, if the subject of the payment for licence fees and royalties to the overseas' headquarters or its calculation method is insufficient or not clearly stipulated in the contract to the effect that the imported goods have no relation whatsoever to the imported goods.
- On 3 March 2015, by Notification 38/2558, Thailand Customs expanded the scope of the Advance Ruling Scheme (ARS) to include rules of origin, besides HTS classification, and customs valuation. ARS has been implemented retroactive to 4 March 2015.
- On 19 October 2015, Thai ministry of finance promulgated notification on collection of service fees on the application procedures under the ARS concerning customs valuation, HTS classification and rules of origin.
(7) Ill-Effect From IFDS granted to Customs Employees by Distribution of Customs Penalties - Should violation of customs act be found, 30% and 25% of the fines go, respectively, to the informant and the customs personnel in charge. If the importer refuses to sign the proposed settlement, customs service expands the scope of search and demands submission of various materials and information. Consequently, MFSs have to waste huge labor. In addition, due to the lengthy proceedings, these requirements can inflate the amount of additional tax and the accrued interest.
Should the importer choose settlement to avoid a lengthy proceeding, it means admission of ill wills (otherwise incentive payment gets denied) and damage to the importer inflates far above the settlement amount.
- A member firm of JBCTIF was compelled to pay substantial amount of interest on payment arrears, due to the customs employees' abnormally prolonging the examination period, (probably prompted by the incentive fund distribution system (IFDS)).		 - It is requested that GOT repeals the incentive.
- It is requested that GOT repeals the incentive fund distribution system.		 - Rules and Regulations Relative to Customs Act
- Thai Customs Act Article No. 102 (3)
- Thai Customs Act, Articles Nos. 27 & 29 and if found guilty, Quadruple Damage on (CIF + VAT + Interest, etc.)
  (Action)
- Section 102 (3) of Thailand Customs Act sets forth "bribe and reward", 30% of the fine to an informer or 25% of the fine to an officer discovering customs act violations or arrest of offenders. In addition, Sections 27 and 99 of the Thailand Customs Act make technical or procedural errors constitute criminal offence, and for each offence there shall be a fine of four times the amount of price of the goods including duty or to imprisonment for a term of not exceeding ten years, or to both, which is false, incomplete, or misleading in any particular statement.
(8) Arbitrary application of HS Code Commodity Classification - Since August 2013, GOT suddenly began collecting 10% deposit reserve upon import of Solar Cells . Concerning the issue whether Solar Cells are classifiable under HS8541 (Solar Cell Module) or HS8501 (Power Generator), most WCO Signatories continue to support adoption of HS8541 as has been the case in the past years. It does not stand to reason why Thailand alone collects 10% deposit reserve on SCBs. - It is requested that GOT affirms HS8541 as applicable classification on Solar Cells and repeals the 10% deposit reserve requirement.
  (Action)
- On 19 October 2015, MOF promulgated notification concerning collection of service fees on the application procedures under advance approval scheme relative to customs valuation, customs classification/country of origin (enforced on the same day).
(9) Prolonged & Difficult Import Customs Clearance due to TISI Specification & Approval Requirement - No import is possible pending completion of accreditation after on-site visit each mill by an accredited certification body, followed by a Third party authorised laboratory test in Thailand. Until the test results are in hand, there remain possibilities for delays in import customs clearance. These requirements get in the way of emergency start up of operation by imported materials or shifting operation to new mills, etc. - It is requested that GOT accommodates smooth import customs clearance, in the circumstances where import materials are in dire need. - TIS Announcement TISI-RPC-01(04)
(10) Vexatiously Complex Import Procedures for Used Equipment - Import procedures are complex for equipment not domestically available in Thailand.
- A Member Firm's Subsidiary (MFS) engaged in manufacturing business by imported used machines and equipment finds itself being unable to carry on its business due to promulgation of the new law that prohibits reuse of machines and equipment with more than 5-years of vintage.		 - It is requested that GOT streamlines the import procedures for equipment not domestically available.
- It is requested that GOT takes step to amend the Law to enable continued use of machines and equipment within 10-years of vintage.		 - Investment Promotion Act, Article 28 or 29
  (Action)
- In Thailand, for the sake of protecting the domestic industry and suppressing the environmental pollution, used vehicles of less than 3,500 kgs. In weight are subject to severe burdens of import licence requirement and compliance of the technical specifications.
(11) Complex Procedures for Acquisition of Certificate of Origin for Knock Down Export - A member firm's subsidiary (MFS) incorporated in Thailand is unable to export knockdown parts to ASEAN Member States as a kit of knockdown parts. Thai customs requires certificate of origin for each single part of the knockdown kit, involving a vast amount of work. Some parts included in the know-down kit do not satisfy the local content requirement and are taxable. If the customs clearance is made for the entire parts kit, all parts become duty free. - It is requested that GOT approves export of knockdown parts by the kit of parts. - Export and Import of Goods Act, BE2522 (1979)
  (Action)
- Under the Japan-Thailand Economic Partnership Agreement (JTEPA), Thai Department of Mineral Resources, Ministry of Economy, Trade and Industry and Customs Department have expressed their views that imported KD kit of parts for export models of automotive vehicles are outside the scope of JTEPA, creating problems with Japanese affiliated enterprises. (JETRO Daily Business News dated 25 July 2013).
(12) Abuse of Antidumping Measures - In order to save domestic steel manufacturers, reckless shotgun attacks of anti-dumping/safeguard measures have aggravated member firms customers' P/L, while domestic manufacturers lag behind the imports in terms of quality, yield rate, etc. Tariff barriers do not seem to contributory to quality improvement of the domestic steel manufacturers.
- On 10 March 2003, GOT imposed anti-dumping duty on cold-rolled stainless steel sheet (from Japan, ROK, ROC and all EU Member States).
- On 27 May 2003, GOT imposed anti-dumping duty on hot-rolled steel sheet (from 14 countries including Japan, ROK, and ROC). GOT has excluded TF steel, tin mill black plate (TMBP), etc. while it establishes import quota in each year on steel products for reroll.
- On 19 March 2004, anti-dumping duty on hot-rolled steel sheet was temporarily removed (for 6-months).
- On 20 September 2004, GOT ended the temporary hiatus period and resumed imposition of anti-dumping duty.
- On 13 March 2008, GOT started the sunset review of the antidumping measures on cold rolled stainless steel sheet.
- On 27 May 2008, GOT started sunset review of the antidumping measures on hot rolled steel sheet.
- On 26 May 2009, GOT decided to continue the antidumping measures on the abovementioned sunset review and simultaneously excluded rerolled steel plates for motor vehicles.
- On 30 June 2010, Final determination on reviews on changed circumstances on hot rolled steel plate. Antidumping measures continue.		 - It is requested that GOT:
-- makes available opportunities for exchange of dialogues with consumers and gives them justifiable explanation in advance in effecting the tariff rates changes.
-- gives guidance to the domestic steel manufacturers for quality improvement of their products.
- It is requested that GOT repeals the antidumping measures.		 - anti-dumping duty invocation periods:
-- October 2008: H Steel Bar
-- February 2014: Cold Rolled Sheet
-- February 2013: Stainless Steel Sheet
-- December 2012, etc. : Hot-Rolled Sheet
- Safeguard Tax
-- September 2013: Hot Rolled Alloy Steel Sheet
  (Action)
- BOI imposed for a period of 6 months from the end of January 2002 an import surcharge (of 25% on C.I.F. prices) with the purpose of protecting the domestic steel industry.
- In February 2002, 5 domestic steel manufacturers, such as Sahaviriya Steel Industries Public Company Limited ("SSI"), filed a petition to initiate an antidumping investigation against import of hot-rolled steel from 14 countries/territories. On 29 July 2002, Antidumping Investigation Commission, simultaneous with the initiation of investigation, started to collect a provisional antidumping bond equal to 30% of the CIF prices. In November, it was decided to impose provisional antidumping duties.
- On 16 May 2003, the final determination was made to collect antidumping duties in the range of 5.98%-136.50% (36.25% against Japan) on imported hot-rolled steel. The final determination included "hot-rolled steel for use with cold-rolled steel", which cannot be supplied by the domestic Thai industry (hence, no injury to the domestic industry). Upon request of Japan Iron and Steel Federation and Japanese Chamber of Commerce, Bangkok ("JTC"), it was mutually agreed by and among the parties to exclude hot-rolled steel for use with cold-rolled steel from the scope of the antidumping finding.
- On 27 May 2008, GOT started sunset review of the antidumping measures on hot rolled steel sheet.
  (Improvement)
- Since May 2003, GOT has imposed for five years antidumping duty on hot-rolled steel from Japan. MOC Antidumping Investigation Commission decided to reduce antidumping duty from 36.25% to 3.22 in response to the claim filed by a Japanese respondent.
- GOT reduced dumping margins after conducting the two Annual Reviews of September 2005 and September 2006 on hot-rolled steel sheet from Japan.
(13) Abuse of Safeguard Measures - On 27 November 2012, Department of Foreign Trade (DFT) initiated Safeguard Investigation on hot-rolled alloy steel from Japan. Notification on initiation of investigation fails to describe precisely the subject products (as to if the products are for use in fabricating automotive vehicles via distributors/processing enterprises, for re-export, etc.). While steel for cold-rolled processing/heat-treatment/automotive vehicles would probably be outside the scope of safeguard investigation, there has been no radical increase in import of the subject products from Japan. Instead of safeguard measures investigation, DFT should rather initiate antidumping investigation, if it wishes to take measures against import from a specific country.
27 February 2013: Provisional duty levy of 33.11% published in Royal Gazette.
12 September 2013: Final decision published in Royal Gazette, levying the following safeguard duty for 3-years from the invocation date of Provisional Duty Levy.
-- 1st Year: 44.20%: 15 September 2013-26 February 2014
-- 2nd Year: 43.57%: 27 February 2014-26 February 2015
-- 3rd Year: 42.95%: 27 February 2015-26 February 2016
In addition, application of the safeguard measures exclude cold rolled steel plate, heat treated or destined to car industrial consumption, and other steel specifications listed in the attachment to Royal Gazette.		 - It is requested that DFT:
-- terminates safeguard investigation against Japan.
-- clearly identifies the products excluded from the Subject Products of Safeguard Investigation.		 - Department of Foreign Trade, Ministry of Commerce Notification
  (Action)
- On 27 December 2013, Thai Department of Foreign Affairs and Trade published 2014 Steel Import Quota pursuant to Japan-Thailand Economic Partnership Agreement.
- On 4 March 2014, Thai Ministry of Commerce promulgated Notification, implementing additional preferential measures on certain grade hot rolled steel products, which are being subject to the current safeguard measures
-- Notification dated 4 March 2014 [in Thai] (http://www.ratchakitcha.soc.go.th/DATA/PDF/2557/E/041/17.PDF)
- On 30 May 2014, Thai Ministry of Commerce implemented additional preferential measures on certain grade hot rolled steel products to certain importers, which are being subject to the current safeguard measures (entered into force from 31 May 2014.)
-- Notification dated 30 May 2014 [in Thai] (http://www.ratchakitcha.soc.go.th/DATA/PDF/2557/E/091/45.PDF)
- On 29 October, Department of Foreign Affairs and Trade (DFAT) released the 3rd steel import quota (the balance of quota for imported steel under the umbrella of steel related enterprises, namely, cars, electric, zinc plated steel industry, pursuant to Japan-Thailand Economic Partnership Agreement (JTEPA).
- On 16 December 2015, Ministry of Commerce (MOC) excluded certain importers (limited to specific use) from the safeguard measures on hot rolled steel products of certain grade and products thereof (enforced from 17 December 2015).
- On 3 February 2016, Department of Foreign Affairs and Trade (DFAT) announced initiation of safeguard measures investigation on H-steel (beam base material) for structural alloy steel (HS 7228.70.10000, 7228.70.90000)
- On 3rd February 2016, DFAT announced "2016 steel import quota" under Japanese Thailand Economic Partnership Agreement (JTEPA)
(14) Nebulous Publication Contents for Changes in Customs Regulations - Notices of change in customs regulations are so nebulous that it is difficult to file import licences timely and correctly. (Even customs brokers are unable to follow). Nevertheless, Customs imposes fines by pointing out the deficiencies. - It is requested that GOT:
-- notifies changes in Customs legislations following the pre-determined methods (such as its web site or Bulletin), and
-- makes direct announcement to the interested parties, such as Customs Brokers.
(15) Complex Product Registration Procedures - Product registration procedures quite complex in import and distribution of medical equipment. - It is requested that GOT repeals product registration renewal procedures, so that once registered no subsequent renewal is necessary like Japan, et al. - the Thai Customs Act B.E. 2469 and the Tax Compensation on Exports Act B.E. 2524
  (Action)
- On 24 March 2014, Thai Customs Department introduced a new registration system to smoothen the customs clearance procedures.
(16) Discriminated Excise Tax Levy between Domestic vs Import - While excise tax is levied upon shipment on locally manufactured products, import duty is levied upon import, domestic manufacturers, being in a position of separate their operation into manufacture and sales, and can save excise tax by reducing prices from factory to sales. In substance, it works as import tariff barriers. - It is requested that GOT harmonises the point of excise tax levy between imports and locally manufactured products (for example, upon shipment from factory.)
(17) Complex Relocation Procedures for Re-Export of Machines in Local Stock - (1) It takes too much time for acquisition of export licence for machines in stock locally in Thailand.
(2) Since April 2014, has become necessary to install the Relocated Machine Security Function (RMSF) on the machine unit destined to Thailand. The cost of installation and operation of RMSF has been the issue for discussion.		 - Now that RMSF with about the same accuracy has now become available in countries other than Japan, it is requested that GOT either deregulates restrictions or streamlines the procedures.

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