Thailand to Impose 10% Duties on Low-Cost Imports to Shield Local Businesses

Thailand will start imposing a 10% customs duty on previously exempt low-cost imports to protect local SMEs. The move aims to safeguard Thai manufacturers by curbing the influx of cheap imported goods, impacting the e-commerce, logistics, and retail sectors.

In a significant policy shift, Thailand will begin collecting a 10% customs duty on low-cost imports that were previously exempt from taxation, according to finance minister Ekniti Nithanprapas. The decision is part of a broader government strategy to protect local small- and medium-sized enterprises from the adverse impacts of cheap imported goods.

Ekniti emphasized that the new measure aims to bolster the Thai manufacturing sector and urged online commerce platforms to assist in tax collection. "The customs duties will act as a barrier to protect SMEs from the flood of cheap imports following the global trade war," he said.

The policy is expected to affect the e-commerce, logistics, and retail sectors, presenting new challenges for carriers now obligated to process millions of parcels for duty and tax collection. This measure marks a crucial departure from the previous duty-free status for low-value imports, according to insights from law firm Tilleke & Gibbins.

(With inputs from agencies.)