CHAPTER
17
CUSTOMS
The Customs authorities are charged
with administration and enforcement of the customs laws, and to an extent, they
are also required to enforce laws concerning taxation, exchange control and
other laws.
Customs duties are imposed on a wide
range of imported goods. They also apply to a number of exported goods, such as
rice, metal scrap, raw leather, rubber, wood, raw silk and powdered fish.
Brussels nomenclature The Thai Customs authorities use the Brussels Tariff Nomenclature.
Value basis Imported goods are generally valued at their CIF cost, with the customs
officer having authority to compare the value declared with other similar
imports and to assess customs duties on what the custom officer deems to be the
actual value. Exported goods are valued at FOB prices.
Exchange controls Most imports valued at over Baht 500,000 can be cleared only upon presentation
of a certificate issued by a commercial bank, showing that the import has been
reported to the Bank of Thailand.
Before an export exceeding Baht
500,000 in value can be made, the exporter must present a Certificate of
Exportation to the Customs officer. Normally, export proceeds must be brought
into Thailand within 180 days and converted to Baht or deposited in a foreign
currency account in Thailand within 15 days of receipt.
Duty refund Goods such as raw materials used in producing, processing or packaging
items for export, may be imported under a system allowing for duties paid to be
refunded or for a guarantee to be posted. The items so imported must be
re-exported within the time stipulated under Customs regulations. Goods
imported which are not processed in any way and not kept in a bonded warehouse
are eligible for a partial duty refund equal to 90% of the duty paid or the
entire duty paid in excess of Baht 1,000, whichever is higher.
Value added tax In addition to customs duties, most imports are subject to value added
tax at the current rate. VAT is assessed on the total of the CIF value of the
imported goods and the customs duty payable.
Value for income tax purposes For income tax purposes, goods that are exported are generally considered
to be sold at the market value prevailing on the date of export.
Exemptions The Petroleum Authority may grant duty exemptions for equipment and
other items imported by a promoted company, a petroleum concessionaire or
petroleum contractor. Businessmen relocating to Thailand may import their
household effects, but the Customs Department requires that a work permit be
submitted before the household goods are released duty free.
The future Thailand, as a member of ASEAN, is subject to the agreed plan for
reduction of import duties that applies to trade between all the ASEAN
countries. Thailand is also a party to other trade agreements, including the
trade group BIMSTEC, and bilateral trade agreements with India, China, Bahrain,
Australia and New Zealand.
In the long term, import duties will
be reduced and will in many cases disappear under these agreements, and free
trade will become the norm rather than the exception.
Revised 1 December 2006