On Tuesday, the Cabinet approved five measures composed of 63 action plans aimed at curbing the surge of ultra-cheap and often inferior products flooding Thai markets, said Suksit Srichomkwan, the Prime Minister’s Deputy Secretary-General for Political Affairs.
Suksit reported that the Commerce Ministry initiated these strategies after consultations with over 50 public and private entities on ways to curb the influx of low-cost goods, particularly from China, which impact both consumers and domestic manufacturers.
Here are the key details of the five strategies:
First, enhance import and customs protocols, including comprehensive inspections at customs and a higher rate of full container load checks.
These measures aim to ensure that imports comply with the standards or certifications of authorities like the Thai Industrial Standard Institute and the Food and Drug Administration.
There is also an emphasis on increasing scrutiny of online goods and enforcing adherence to Thai laws, including the prevention of using nominees to circumvent legal barriers.
Second, revise regulations to keep pace with evolving trade dynamics. This involves mandating foreign e-commerce operators to register and establish legal entities in Thailand to enhance consumer protection and promote fair trading practices.
Third, enhance tax measures to decrease imports. These include customs duties, corporate income tax, value-added tax, anti-dumping duties, anti-circumvention duties, and additional safeguards.
Additionally, the government is exploring amendments to anti-dumping laws to enable the administration to file lawsuits on behalf of impacted private entities.
Fourth, bolster Thai small and medium enterprises by fostering business development and upgrading production capabilities to help them compete internationally. This strategy includes embracing new production technologies and innovations, and broadening the export of Thai products via e-commerce.
Fifth, strengthen and broaden collaborations with key trading partners like China, Japan, and South Korea to open more avenues for promoting Thai products and services internationally through e-commerce, and to establish Thailand as a regional hub for the aggregation and distribution of e-commerce goods.
Suksit noted that the Cabinet has mandated that all relevant agencies swiftly implement these measures, monitor progress weekly, and hold bi-weekly discussions to adapt strategies as needed based on ongoing evaluations and needs.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, commented on Tuesday that the government’s measures are a promising sign for businesses impacted by the issue.
He also proposed several proactive steps to more effectively address the problem of ultra-cheap imports:
– Engage in discussions with Chinese regulatory authorities to ensure the standards of industrial and food products are verified before they are shipped to Thailand.
– Encourage businesses and the public to participate in market surveys to detect and report substandard goods, enhancing overall market surveillance.
– Establish payment regulations for foreign online platforms to bring them under the regulatory purview of the Bank of Thailand.
– Apply both VAT and sales tax to transactions on online platforms to ensure equitable taxation.
– Promote Thai products to boost foreign investment and enhance the development of the supply chain for Thai manufacturers, and intensify anti-dumping measures on specifically targeted products.
