Thailand to charge new import duty on foreign products

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Gaybutton
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Thailand to charge new import duty on foreign products

Post by Gaybutton »

Import duty on foreign goods sold online costing 1 baht upwards starting Jan. 1

November 5, 2025

The Customs Department today (Nov. 5) announced that from Jan. 1, 2026 onwards an import duty will be charged on all foreign goods sold at various online platforms costing 1 baht upwards along with the Value Added Tax (VAT) as required by law with this replacing tariff exemption on such goods costing less than 1,500 baht which is set to expire at yearend, Amarin TV said.

Mr. Panthong Loikulnan, the Customs Department director-general, said the current value of goods priced below 1,500 baht and imported from various platforms exceeds 30 billion baht a year. If an average 10% duty was collected from online platforms, the government would generate at least 3 billion baht annually.

The system will primarily use online platform data verification, with additional random inspections in some cases.

“I have set a deadline for Jan. 1, 2026. Items valued at less than 1 baht will not be taxed, but anything above that will be taxed. Not collecting any duties at all would give foreign goods an advantage over Thai businesses,” he said. “This is unfair to SMEs.”

Many countries around the world, such as the United States and several others, have already abolished the de minimis, or minimum value exemption, to prevent tax evasion and protect domestic producers. This import duty adjustment does not violate any Free Trade Area (FTA) agreements or other trade pacts.

Thailand remains within its established framework, and many countries around the world are beginning to review their tax structures in a similar manner. The United States and its major trading partners in Asia have gradually increased or decreased import duties on certain products to protect domestic industries and promote economic balance.

Panthong added that the new approach will ensure fairness to Thai businesses that pay taxes correctly, particularly SMEs which are affected by the flood of cheap imported goods.

The Customs Department is expediting negotiations with major platforms like Shopee and Lazada from Friday Nov. 7 onwards to directly link sales and import data.

“I believe that if we delay this process, we will be at a disadvantage because all countries are beginning to see the same problem: domestic sellers pay taxes, but foreign goods are imported without paying anything,” Panthong said.

He also proposed a long-term solution: amending the law to allow for a “lump-sum tax,” such as setting a flat rate of 20-30% for all imported boxes. This will simplify and increase efficiency, but he acknowledged that legal amendments would take time before it could be implemented.

https://thainewsroom.com/2025/11/05/imp ... ing-jan-1/
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Re: Thailand to charge new import duty on foreign products

Post by Dodger »

Jai's response when he first read about this on-line yesterday (after laughing) was..."They are just throwing the stone again".

I agreed with him (I always do...he's much smarter than me).

The fact that they haven't even mentioned how much the import duty will be is evidence that this is just another half-baked proposal and no one has agreed to anything yet.

These giant e-commerce platforms like Lazada and Shopee used to sell merchandise from their own warehouses, which has since evolved into marketplace models that now allow third-party sellers and brands to have their own storefronts (and warehouses). I'm not a tax lawyer, but all I can say is "good luck" trying to figure out who to tax, e.g., individual customers or the third-party businesses who are doing the importing :?:

They're watching too much "Trump" and it's making them dangerous...LOL

It'll be interesting to hear what Benjamin Hart has to say about this.
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Re: Thailand to charge new import duty on foreign products

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Dodger wrote: Sat Nov 08, 2025 7:08 am "good luck" trying to figure out who to tax
I too have no idea what would be taxed, who would be taxed, and how much the tax might be. Both Lazada and Shopee feature many items imported from abroad and have to go through Customs before delivery. But since both Lazada and Shopee are Thailand companies, how will that work?

I also occasionally order from Temu - a Chinese online company. Their prices are often much less expensive than Lazada or Shopee and they do not charge a delivery fee. But they are based entirely in China and no matter what you order, the product is imported to Thailand from China. I have a feeling that at least in part this tax idea may be because of pressure from both Lazada and Shopee to try to curtail or even eliminate foreign competitors such as Temu.
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Re: Thailand to charge new import duty on foreign products

Post by 2lz2p »

Thailand is part of ASEAN as is China and they are both in the ASEAN–China Free Trade Area. Wikipedia notes that:
The free trade agreement reduced tariffs on 7,881 product categories, or 90 percent of imported goods, to zero. This reduction took effect in China and the six original members of ASEAN: Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand.


So the plan to tax online purchases will no doubt exclude most items that come from China or any of the other ASEAN countries that are part of the Trade Area.

As to goods from other countries, they are usually accompanied by a Customs Declaration form stating the value of the goods. Any goods valued above 1,500 baht (about US$46 at current exchange rate) is already being taxed. So it appears Thai customs plans to start collecting taxes and VAT on goods that fall between 1 and 1,500 baht.
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Re: Thailand to charge new import duty on foreign products

Post by Dodger »

2lz2p wrote: Sat Nov 08, 2025 9:02 am
...... Any goods valued above 1,500 baht (about US$46 at current exchange rate) is already being taxed. So it appears Thai customs plans to start collecting taxes and VAT on goods that fall between 1 and 1,500 baht.
I interpreted what they were saying to mean - after Jan 1 duty taxes would be collected on goods exceeding 1 baht...with no ceiling.
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Re: Thailand to charge new import duty on foreign products

Post by 2lz2p »

Dodger wrote: Sat Nov 08, 2025 9:20 am
2lz2p wrote: Sat Nov 08, 2025 9:02 am
...... Any goods valued above 1,500 baht (about US$46 at current exchange rate) is already being taxed. So it appears Thai customs plans to start collecting taxes and VAT on goods that fall between 1 and 1,500 baht.
I interpreted what they were saying to mean - after Jan 1 duty taxes would be collected on goods exceeding 1 baht...with no ceiling.
Currently, items valued in excess of 1,500 baht from countries that are not part of the ASEAN free trade agreement are being taxed - there is no ceiling. The planned change is to now also charge tax on the 1,500 baht that was not being taxed.

I have bought several items through Lazada that come from China and there has been no tax, even when above 1,500 baht. I also have bought some items from a Chinese company and there was no customs duties or VAT. When I buy items from Amazon that exceeded 1,500 baht which is the case in most of my orders, Amazon usually includes estimated taxes along with the item cost and shipping so it gets delivered without any need for me to deal with Thai customs (not often, but I have a few times received a refund from Amazon when the taxes were less than their estimate).
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Re: Thailand to charge new import duty on foreign products

Post by Dodger »

2lz2p wrote: Sat Nov 08, 2025 11:30 am
Currently, items valued in excess of 1,500 baht from countries that are not part of the ASEAN free trade agreement are being taxed - there is no ceiling. The planned change is to now also charge tax on the 1,500 baht that was not being taxed.
Thanks, we're on the same page.

Regarding products from China:

I've always had major Quality concerns with anything made in China - and for that reason avoid their products like the plague. I guess with the free trade agreement that you mentioned the cheap copies that China keeps saturating the Asian market with will be duty-free... :?

Seeing as Lazada is owned by the Chinese (Alibaba and the 40 Thieves) I suspect the Chinese are working closely with Thailand behind-the-scenes on this brainstorm.
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Re: Thailand to charge new import duty on foreign products

Post by Gaybutton »

I've learned a few things from these posts. First, I did not know Amazon will ship to Thailand. I don't know where I got that from, but I was under the impression that Amazon does not ship to Thailand. I never thought to question that. Good! Now maybe I can get a few things that I don't see on Shopee, Lazada, and Temu.

Second, I'm glad apparently Temu will continue to be available without falling under this tax proposal.

Third, Dodger - there is no reason to be skeptical of items made in China. I've had many items delivered that are made in China and everything has always been top quality. To me, "made in China" is actually a plus.
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Re: Thailand to charge new import duty on foreign products

Post by Dodger »

Gaybutton wrote: Sat Nov 08, 2025 12:43 pm
Third, Dodger - there is no reason to be skeptical of items made in China. I've had many items delivered that are made in China and everything has always been top quality. To me, "made in China" is actually a plus.
The ONLY plus to buying Chinese products is that they are cheaper. And believe me they're cheaper for a reason. If you're having good luck with the things your buying from China you should consider yourself lucky.
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Re: Thailand to charge new import duty on foreign products

Post by 2lz2p »

Gaybutton wrote: Sat Nov 08, 2025 12:43 pm I've learned a few things from these posts. First, I did not know Amazon will ship to Thailand. I don't know where I got that from, but I was under the impression that Amazon does not ship to Thailand. I never thought to question that. Good! Now maybe I can get a few things that I don't see on Shopee, Lazada, and Temu.
In the upper left part of the Amazon site, you should see a "Deliver to ___". Click on that and go to the bottom of the window that appears. In the section that says "or ship outside the US," click on the drop down arrow. Select Thailand and click on "done."

After you do this and search for items, only those places that will ship to Thailand should appear. After clicking on an item you may want, the upper right side of the window should show the price along with a total for "shipping & import" It should have a link for "Details." Clicking on that should give you a breakdown for the item, shipping, & taxes.
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