Imported parcels delivered directly to recipients in Thailand have decreased in volume, while their prices have increased as a result of Customs Department measures.
According to Phantong Loykulnanta, director-general of the department, measures implemented this year to protect domestic producers, particularly small and medium-sized enterprises (SMEs), revoked the import duty and value-added tax (VAT) exemptions for imported parcels valued less than 1,500 baht, also known as de minimis goods.
Imported parcel goods valued more than one baht are now subject to both import duty and VAT.
Although the collection of import taxes on such goods has increased the department's revenue by about 300 million baht per month, revenue generation is not the sole objective, he said. Protecting domestic entrepreneurs, especially SMEs, from low-priced imported goods is a priority, said Mr Phantong.
Based on a department survey of goods sold via online platforms, prices of certain imported products have risen. For example, eyeglasses with lenses that were previously priced at 300 baht have increased to 500 baht.
Customs also introduced a policy requiring importers of parcels addressed to recipients in the country to clearly declare the value of the goods on the front of the package, enabling officials to verify whether the declared value is understated.
He noted imposing import duties and VAT on goods valued less than 1,500 baht may be insufficient to help Thai SMEs compete against the influx of low-priced imports. Another measure is being consideration to increase tariff classifications for such parcel imports.
Import duty rates for these goods have been reduced to relatively low levels. For example, some items are taxed only 5%, while the legal ceiling is 30% or 40% for certain categories. The department is considering proposing to the Finance Ministry a hike in import duty rates for these goods, up to the legal maximum, said Mr Phantong.
Reducing import duties for these products is inappropriate as they compete with domestic manufacturers and provide no tangible benefit to Thailand, he said. These goods are packaged abroad and imported through foreign platforms.
Customs previously stated import duty rates for de minimis goods, which average 10%, are considered too low because foreign operators selling them are not subject to corporate income tax payment in Thailand, unlike domestic businesses, which creates unfair competition. Most low-value imports, primarily ordered by domestic consumers via online platforms, generate revenue that largely flows overseas, including income from product sales and domestic shipping fees.
Roughly 200 million low-value parcels are imported annually, with more than 95% bought on online platforms, while 1 million parcels are direct purchases from foreign sellers.
