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Import Policy
Thailand has been shifting its trade policy in the direction of greater
rationalization, in order to promote more efficient industrial development,
to reduce protectionism and improve the overall tariff structure.
Part of Thailand's structural adjustments, includes elimination of
the general import duty surcharge. Imports are freely allowed with
no import approval requirement. However, an import licence is required
as approval for a small number of items. Generally any importer may
be able to import goods if he or she is able to obtain a letter of
credit.
Import licences where required, must be requested from and approved
by the Foreign Trade Department, Ministry of Commerce prior to the
arrival of the shipment. An issued import licence is usually valid
for three months from the date of issuance, unless otherwise specified
in the licence.
Tariffs
The Thai customs tariff is based on the Harmonized Commodity Description
and Coding System. Most duties are ad valorem, although some are specific
and others are both ad valorem and specific. When the tariff lists
both specific and ad valorem rates for an item, the rate yielding
the higher revenue applies. Most tariff items have duties of 30 percent
or less. All duties are payable in Baht at the time goods are cleared
through customs.
Specific Duties
Specific duties are calculated on unit, volume or weight. Duties based
on weight refer to the net weight exclusive of packing materials,
except when expressly stated or otherwise.
Ad Valorem Duties
Ad valorem duties are assessed on the 'wholesale cash price (exclusive
of import duty) for which goods of loss at the time and place of importation,
without deduction or abatement'.
Normally the accuracy of all declared values is checked by valuation.
As a matter of convenience, however, in suitable cases invoices are
acceptable as contributory evidence as to value. However, for duty
purposes, the price on an invoice is not regarded as conclusive evidence
of value.
In declaring the value of goods for which invoices are submitted as
contributory evidence of value, importers must include all costs,
charges and expenses (whether for the purchase or delivery of the
goods) up to the point where the goods are discharged from the importing
vessel i.e., freight insurance, commission and expenses for foreign
carriage, loading and unloading, port dues, royalties, containers
and packages (except in the case of liquefied gases in cylinders).
Certain deductions shown on invoices are normally allowed e.g., reasonable
trade and cash discounts given on repeat orders. Sample discounts,
contingent rebates and allowances for selling and advertising expenses
are not admissible. A ruling on any particular case will be given
on request.
Preferential Duties
This is in relation to an agreement for liberalized trade among the
less developed member countries of ESCAP, with the aim of increasing
the range of tariff concessions.
Also, it is an agreement between the EC and ASEAN to remove trade
barriers. Information on Preferential Trading arrangements between
ASEAN members is mentioned under bi-lateral and multilateral trade
agreements.
Customs Surcharges and Indirect Taxes
As of June 1990, imports are subject to an import surcharge of 0.5
percent. Few goods are exempt from the surcharge including mineral
fuels, mineral oils, and products of their distillation, bituminous
substances and mineral waxes, items exempt from import duty and goods
subject to refund of duty.
Business tax on sales is levied on almost all imports, ranging from
1.5% on educational materials, raw materials and home appliances to
30% on alcoholic beverages and other luxury items.
While most imported products are subject to the business tax, there
are some that are exempt. These include goods exempt from customs
duties, goods imported by registered private and government schools,
goods imported by non-profit seeking government municipal agencies,
machinery parts, accessories, raw materials, instruments and tools,
prefabricated structures and accompanying construction equipment imported
under the promotion of Industrial Investment Act.
The base for calculating business tax is, the 'normal' selling price
(i.e. CIF value) plus import duty and the standard profit for the
item. The business tax is payable on the first sale (i.e., sale by
the manufacturer to distribution), unless the imported product is
materially altered. Payment is made at the time of importation.
There are plans to replace the business tax with Value-Added Tax.
Import Surcharges
The Board Investment (BOI) under the office of the Prime Minister
is given the power to levy surcharges on imports of specific items
and if necessary, to protect local or promoted industries. However
in recent times the BOI has been placing less reliance on imposition
of surcharges.
The tariff implementing body is:
Tariff Division
Department of Customs,
Ministry of Finance,
Art Narong Road,
Klong Toey,
Bangkok 10110
Foreign Exchange Controls
Thailand has a liberal system of exchange control and foreign exchange
is available without restriction to cover merchandise imports. In
May 1990, the government of Thailand liberalized foreign exchange
controls. The Bank of Thailand on behalf of the Ministry of Finance,
administers exchange control and delegates responsibility to commercial
banks, to act as authorized agents for most transactions. Payments
for imports may be approved by authorized commercial banks upon submission
of required documents. In addition to the usual documents, importers
must obtain a 'Certificate of Payment' from an authorized paying agency
before imports valued at more than 50,000 Baht can be cleared through
customs. Certain minor categories of imports are exempt from this
requirement.
The Bank of Thailand requires specific approval under three conditions:
 When advance
payment of more than US$ 4,000 is made.
When a documentary
letter of credit is opened with an expiry date exceeding 9 months.
When a revolving
letter of credit is applied for payment of imports.
Packing
Careful and adequate packing should be practiced in order to discourage
pilfering in the harbours and to withstand the rough handling of cargo
by dockworkers. Secure packing is essential and banding of cases is
desirable. Directions for handling merchandise should be inscribed
on cases such as 'this side up' in case of goods requiring a certain
position and 'fragile' when such is the case. Since Thailand is a
tropical country, merchandise affected by excessive heat and humidity
should be treated and packed to withstand deterioration. Also since
merchandise is very often transferred in open lighters, waterproof
packing is advisable for articles subject to water damage. Oil lined
paper should be used whenever possible.
Marking
There are no stipulations regarding how shipments must be marked and
any common shipping practice may be followed. In general, all identifying
marks including inscribed plainly on the packagers, should facilitate
arrival of the shipment. Packages should be numbered unless the contents
are such that they can be identified readily without numbers.
Labelling
Weight and measures on labels must always be in metric units. Whenever
weights and measures shown on merchandise or containers offered for
sale are not in metric units, the equivalent in the metric system
carried out to one decimal point must be given. For most food products,
the origin must be stated clearly on the label. Certain types of packaged
commodities should display their net volume clearly on the outside
of the package.
For certain food products and beverages, special labelling requirements
apply. For canned milk, labels must show the category, kind, and trademark
of the milk, the name of the manufacturer and the location of the
factory. For skimmed milk, labels must state clearly in Thai letters
at least seven millimetres high, "skimmed milk - not to be used
for nursing babies."
For butter and cultured milk, milk and milk products, canned foods,
monosodium glutamate, vinegar, bottled drinking water, and non-alcoholic
drinks, special labelling requirements apply. The labels of food or
'pure monosodium glutamate', and 'not recommended for mixing with
food for infants and pregnant women', whichever is applicable. Most
importers prefer to have labels, instructions and descriptions printed
in the Thai language.
Food products generally must be labelled in the Thai language to show
the name of the food and its registration number, the name and address
of the manufacturer, date of manufacture, net weight or contents and
additives used.
Irradiated onions imported or manufactured for distribution must be
labelled with the following information: 'onion irradiated with gamma
rays', name and food registration number, name and location of the
place of manufacture, date, month and year of irradiation and net
weight in metric units. The labels must be in Thai and clearly legible.
Containers of tea should be labelled with at least the word 'tea',
name and food registration number, name and location of factory, net
weight in metric system and kind and amount of admixtures for flavour
or taste, if any. Labels for coffee should contain at least the words
'unadulterated coffee', 'mixed coffee', or 'artificial coffee', as
the case may be, name and location of factory, net weight in metric
units, kind of mixtures for mixed coffee and artificial coffee and
volume in percentage of coffee (for artificial coffee).
Certain packaged goods are required to have printed on the container,
wrapper, or fastener the contents of the package (exclusive of container,
wrapper, or fastener) in units of the metric system. Either Thai or
Arabic characters should be printed indelibly in a size not smaller
than two millimetres tall. All statements of quantity should correspond.
In the case of drugs such as methaqualone, or similar formula drug,
drugs containing as a mixing ingredient, any substance causing harmful
effects as may be caused by secobarbital, amobarbital, cyclobarbital,
pentobarbital, metaqalone barbital, ethquavinol, ethinamate, methyphenobarbital,
methiprilon, phenobarbital, mebrobamatem, amidopyrine, drprone and
phenacetin, must carry cautionary and warning labels as to the possible
harmful effects and side effects to users including those driving,
working with machinery, consuming alcohol pregnant women and children.
Dyestuff is subject to certain labelling regulations under various
sections of the Poisonous Substances Act BE 2516. In addition, dyestuff
must also be labelled "prohibited for use with food."
Items not carrying the required labelling must be corrected before
clearance. Rubber-stamping or the use of additional labels may do
corrections. Failure to comply may result in destruction of the goods
or fines.
Quality Standards
Strict regulations are in force concerning food items and medicines.
The Ministry of Public Health prescribes standards, qualities, methods
of manufacture and labelling requirements for controlled foodstuff
and medicine.
The National Standards Organization of Thailand is the Thai Industrial
Standards Institute (TISI), which is under the ministry of Industry.
TISI prepares and publishes industrial standards, grants licences
to use the standards marks and promotes the use of standards. When
the standard for a product has been made compulsory, both the manufacturer
and the importer are required to obtain a licence to manufacture or
import such products for sale in Thailand.
The regulations of the Ministry of Industry specifying the required
documents and supporting materials must be observed when applying
for the licence. After TISI issues a license, the licensee must mark
the products with the standards mark before the Customs Officer can
release the products. The Ministry of Industry may permit marking
after release from Customs only under specified conditions.
Foodstuffs
Shipments of milk and milk products, canned foods, concentrated drink,
drinking water in airtight containers, monosodium glutamate, vinegar
and imitation vinegars, food colours, cooking oil, and irradiated
foods require licenses. They must also be registered with the Control
Division, Ministry of Public Health.
When seeking registration, importers must supply two samples of each
product, six labels and a list of ingredients, indicating the percentage
composition. The certificate of registration, issued by the Control
Division, must be presented for customs clearance of the goods.
Import of coffee requires a permit issued by the Commodity Control
Division, Department of Foreign Trade. The Ministry of Public Health
controls the importation and production of irradiated foodstuffs.
Special permits are required for their importation. The foodstuffs
are subject to the provisions of the Food Quality Control Act.
Irradiation of onions for the purpose of stopping growth must be by
gamma rays, from the irradiating machines having Cobalt-60 as source
and with rays not exceeding 10 kilorads. Shipments of white, glutinous,
paddy or prepared rice require a special permit. Oils and fats are
subject to standards for quality, manufacture and labelling. Specific
regulations are in effect for peanut oil.
The importation of any food containing cyclamic acid or its salts
is prohibited. In addition, the following substances are prohibited:
brominated vegetable oils, boric acid, borax, salicylic acid, calcium
iodide and potassium iodide (except for treatment of goitre), potassium
chlorate and nitrofurazone. Food, food mixtures, or food preparations,
containing AF2, generally known as Furylframicde or chemically named
2-(2-Furyl)-3(5-nitro-2-furyl) acryl amide are also prohibited.
The following food items have been classified as controlled foodstuffs
by the Ministry of Public Health, which also prescribes standards,
qualities and methods of manufacture. These include cows' milk including
powdered and concentrated cow's milk, cultured milk, cream, milk fat,
butter, cheese, ghee, ice cream, baby foods and modified milk for
infants, flavoured milk, margarine, ice, drinking water and beverages,
food colourings, peanut oil, vinegar, fish sauce and foods packed
in airtight containers.
Medicine
All imported medicines must have a license for each product. A pharmacist
must supervise Importation. Medicines must be manufactured according
to the Code of Good Manufacturing Practices. Applications for registration
must be accompanied by all supporting documents requested by the Ministry
of Public Health, which has full authority to accept or reject any
application, if the efficacy or the safety of the medicine is in question.
Licenses are valid for five years.
Strict regulations are in effect governing the sale, use, and labelling
of dangerous drugs. Regulations are in effect for certain drugs detailing
warnings and precautions to be included on accompanying literature
and leaflets. Exporters should check with their customers for information
on specific products.
Food Containers
All kinds of ceramics or plated metal ware used for food storage must
not contain more than two milligrams of soluble lead per litre of
capacity. Food containers containing pictures, marks, or statements
likely to be misleading about the food contained are prohibited. Food
containers must be clean, must not have been previously used for packing
any food or other material, except for certain glass containers and
must not give off any material to come into contact with food in a
quantity likely to be dangerous to health. Certain regulations are
in effect for food containers made of polyvinyl chloride plastic.
Vinyl chloride monomer must not exceed 1mg per kg when detected.
Plastic bags or plastic sheets for use as food containers must be
clean and free from unwanted articles and germs. They must not have
been made from used plastic nor contain or give out any substances
that could contaminate the food in quantities that may be dangerous
to health.
Beverages
Special requirements relative to the manufacturing process and labelling
are in effect for beverages packed in sealed containers and not containing
natural fruit juice, beverages consisting entirely or partially of
fruit juice and concentrated beverages used for consumption after
admixture or dilution.
Other Items
Many other items are subject to specific standards or other regulations,
including motor vehicles, gunnysacks and bags of jute, tea and coffee,
matches, fibres and yarn and poisonous substances.
Documentary Requirements
Three copies of commercial invoice signed by the exporter are required.
No special form is required. Depending on the nature of the shipment,
additional information may be required by the importer, by the bank,
or by the terms of the letter of credit.
Certificate of Origin
This is generally not required but may be requested by the letter
of credit. A recognized Chamber of Commerce must certify the certificate
of origin.
Packing List
Recommended as a service to the customer.
Bill of Lading
Three signed original bills of lading usually are required for banking
purposes. In addition, the consignee requires two or more unsigned
copies, while customs authorities require one copy for clearance.
The airway bill replaces the bill of lading on air cargo shipments.
Sanitary Certificate
Shipments of certain seeds, fruit and live animals require sanitary
certificates. A phytosanitary certificate is required for import of
most plants or plant materials. Prohibited plants and plant materials
may be permitted importation for experimental or research purposes
only. All imports that require phytosanitary certificates must enter
specified ports and are subject to inspection on arrival and to treatment,
destruction, or post-entry quarantine, as warranted after inspection.
Free Sale Certificate
Import of medical devices into Thailand must be covered by a free
sale certificate, issued by the highest health authority in the country
of production. The certificate must be presented in the original after
having been legalized by a Thai Consulate in the country of production.
It remains valid for three years from the date of issue. Medical devices
arriving in Bangkok without the free sale certificate will be confiscated.
However, importers may be granted a 90-day grace period to produce
the certificate.
Commercial Samples
Samples with no commercial value are admitted duty-free. Samples with
commercial value are dutiable under the applicable tariff category.
Dutiable samples may be admitted for six months free of duty, under
a bond or deposit equal to the duty. In this case, the quantity and
value of the samples must be limited so that the total shipment can
still be considered samples in the usual sense. If the samples are
re-exported within the six-month period, the bond will be cancelled
or the deposit refunded.
Advertising Materials
Advertising matter, whether for sale or free distribution, is subject
to the applicable duty.
Free Trade Zone
There is a Free Trade Zone at Bangkok. However, the government encourages
foreign investment and export-oriented industries by means of industrial
estates, export processing zones and investment incentives targeted
for investment promotion zones. The Eastern Seaboard Development Programme
is a regional development scheme, which includes an export processing
zone and industrial estates at Laem Chabang and Map Ta Phut.
There are two government agencies with main responsibility concerning
investment promotion zones, export processing zones and industrial
estates. First is the Industrial Estate Authority of Thailand (IEAT)
under the Ministry of Industry. Second is the Board of Investment
under the office of the Prime Minister.
Patents
Patents are protected under the Patent Act 1992, which protects both
inventions and product design. In case of inventions, patents are
valid for a period of 20 years and 10 years for product design. Foreign
patents, inventions and designs receive no protection under the Patent
Act. Therefore no civil or criminal action can be taken against a
3rd party who produces products or sells a patented product in Thailand
without paying fees to the holder of the foreign patent, or who applies
in Thailand for a patent or an invention or design already patented
in other countries. Nevertheless under separate legislation legal
solutions may be available.
Trademarks
The Trademark Act 1992 provides protection for trademarks. Registration
is effective for a period of 10 years. The owner of a registered trademark
may initiate legal action against violators. As of 1991 service marks,
certification marks and collective marks receive the same protection
as trademarks. Trademarks can only be registered if the proprietor
or representative has a place of business in Thailand, which the Trademark
Office can contact. |
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