Thailand Imposes 10% Duties on Low-Cost Imports to Protect SMEs

Thailand is set to implement a 10% custom duty on low-cost imports starting January 1, as part of a strategy to safeguard local SMEs from cheap foreign goods. This policy change targets e-commerce platforms and aims to bolster domestic manufacturing amid global trade challenges.

In a significant policy shift, Thailand will begin imposing a 10% customs duty on low-cost imports, marking a departure from previous exemptions. Finance Minister Ekniti Nithanprapas announced the new measure on Friday, aiming to shield local small- and medium-sized enterprises (SMEs) from overseas competition.

The new duty will target imported goods valued at 1,500 baht ($45.80) or less, previously exempted from such taxes. This change, effective January 1, is designed to support Thai manufacturers and requires the cooperation of online commercial platforms for tax collection. The policy responds to the challenges faced by domestic businesses from an influx of inexpensive imports, primarily from China.

Law firm Tilleke & Gibbins highlights that the move will impact e-commerce, logistics, and retail sectors, increasing the workload for carriers involved in duty assessments. Last year, a 7% VAT was introduced on the same category of goods, reflecting the government's ongoing efforts to protect local industries impacted by global trade dynamics.

(With inputs from agencies.)