What To Know
- This Bangkok Business News report comes on the heels of a recently signed agreement between Thailand and the US to impose a 19% reciprocal import tariff, approved by Thailand’s Cabinet on August 1.
- The government insists this bilateral arrangement is a special case and should not serve as a model for broader trade policy, particularly any future Free Trade Agreements with other nations.
Bangkok Business News: Customs Crackdown as Trade Tensions Rise
Thailand’s Finance Ministry has ordered immediate and tougher inspections of exports following mounting concerns from the United States over potential fraud involving solar cells and other products. Deputy Finance Minister Julapun Amornvivat confirmed that the Customs Department has been instructed to intensify its crackdown on goods suspected of transshipment and counterfeit origins, particularly those originating from China but rebranded as Thai exports.
One of the key products breaking the trade rules according to the United States was solar panels from Thailand
Image Credit: AI-Generated
This Bangkok Business News report comes on the heels of a recently signed agreement between Thailand and the US to impose a 19% reciprocal import tariff, approved by Thailand’s Cabinet on August 1. The deal will now be submitted to Parliament, where Julapun expressed confidence in smooth approval. As part of this bilateral push to strengthen trade transparency, the US has flagged 65 product categories for close scrutiny—solar panels being a primary concern.
Spotlight on Solar Panels and Regional Value Rules
Finance Ministry Permanent Secretary Lavaron Sangsnit noted that both countries are still negotiating the final terms for the required Regional Value Content (RVC) in exported products, expected to be set at around 50%. This figure will include components from Thailand’s trade allies—but notably exclude any parts sourced from China, which has not finalized a tariff deal with the US.
Teerat Attanavanich, Director-General of the Customs Department, emphasized that the longstanding issue of lenient inspection was partly due to Thailand’s efforts to streamline trade and attract investment. However, under the new directive, tighter enforcement will be applied. Past trade deals have usually accepted a minimum 40% local content threshold, but the US agreement may set stricter rules depending on negotiation outcomes.
New Enforcement Measures and Watchlist Expansion
The Finance Ministry and Customs officials are now shifting focus toward ensuring that all exported goods meet the required domestic value benchmarks. Teerat confirmed that the US has submitted a list of 65 watchlist products believed to be at high risk for origin fraud. These include not only solar cells, but also other electronics and machinery parts that may be assembled in Thailand using mostly foreign components.
Thai officials have been tasked with verifying that these products genuinely originate in Thailand or contain enough qualifying local and regional content. The government insists this bilateral arrangement is a special case and should not serve as a model for broader trade policy, particularly any future Free Trade Agreements with other nations. Such deals, they stress, must conform to global standards set by the World Trade Organization.
As global trade rules tighten and geopolitical tensions rise, Thailand must tread carefully to maintain its export credibility without alienating vital partners. The country’s ability to meet US requirements while preserving its competitiveness will likely set the tone for future trade engagements. The effort to eliminate transshipment fraud not only helps to safeguard market access, but also reinforces Thailand’s reputation in international commerce.
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