Thailand will begin imposing a 10% customs duty on low-cost imported goods that were previously exempt from tax, part of a broader government effort to shield small- and medium-sized local businesses, Finance Minister Ekniti Nithanprapas said on Friday.
Under current rules, imports valued at 1,500 baht or less are not subject to duty, while higher-priced items face varying tax rates depending on the product type.
Mr. Ekniti said the new tariff, set to take effect on January 1 next year, is aimed at strengthening the domestic manufacturing sector.
He added that the government is seeking cooperation from major online commerce platforms to support the collection process.
“The customs duties will be used to protect SMEs from cheap imported goods flooding into the country following the global trade war,” he said.
According to law firm Tilleke & Gibbins, the policy will affect the e-commerce, logistics and retail sectors, placing additional pressure on carriers that previously processed millions of non-dutiable parcels but will now need to handle duty assessment and tax collection.
“This policy marks a fundamental shift away from duty-free low-value cross-border e-commerce in Thailand,” it said in a note.
Last year, the previous administration approved the imposition of a 7% value-added tax (VAT) on the same category of low-cost imported products through December.
A surge of inexpensive goods, mainly from China, has disrupted local manufacturers and retailers in recent years, leading to factory closures and job losses and fuelling calls for stronger government action.
