Commerce Ministry to petition US for tax exemption

 

FILE photo

 

BANGKOK, 26 March 2018 (NNT) – The Ministry of Commerce is now working with the private sector to petition for tariff exemption after US President Donald Trump invoked Section 232 of the Trade Expansion Act of 1962 to impose new tariffs of 25 percent on imports of steel and 10 percent on imports of aluminum. 

The ministry’s move came after the US government announced details of the new taxes as well as guidelines for application for tax exemptions. 

Under the guidelines, the main criteria to qualify for exemptions is that the applications for these dispensations can only be made by US importers who must prove that the products are indispensable for their purposes and either there is limited local production of the products or there is inadequate local supplies of the goods. 

The Department of Foreign Trade has now been tasked with making an official application for dispensation on a country basis so that Thailand can be removed from the taxable countries list for steel and aluminum.

 

-- nnt 2018-03-26

Good luck with that.

 

Given the trade imbalance with the USA does anyone really think Trump will make an exemption for Thailand? He has already singled out Thailand as one country that has a large trade imbalance and is seen as a currency manipulator.

 

As an aside I didn't think Thailand had a significant steel or aluminium industry apart from where they bend the stuff into vehicles and other goods for sale to the US (amongst others).

Cheeky bastards.

 

How much duty is charged to import these items into Thailand from the US ?

 

 

1 hour ago, webfact said:

The Department of Foreign Trade has now been tasked with making an official application for dispensation on a country basis so that Thailand can be removed from the taxable countries list for steel and aluminum.

'on a country basis' ? got to be kidding; dream world; what good would a policy be if everyone got an exemption ?

Meanwhile, Thailand continues to heavily protect its own industries through very high import tariffs:

 

customs code 02.07 - poultry meat, fresh or frozen - 60% import duty

customs code 06.02 - natural rubber - 60% import duty

customs code 03.06 - crustaceans (including shrimps and prawns) - 60% import duty

customs code 22.04 - grape wine and related alcoholic beverages - 60% import duty

and the list goes on and on...

 

And yet they whine that they got to pay a measly 25% on their milled steel and aluminium and want an exemption? On what grounds?

 

Now, let's be reciprocal and tax Thailand's antibiotic-laden shrimps and frozen poultry products with 60% import duty and see them throw another tantrum and threaten to sue.

It would be more promising to ask the Donald to become a Buddhist part-time monk in his Thailand holidays. Sometimes I wonder how far these people can distance themselves from reality, without falling over the rim of their flat world they live in.

Thailand has a quite large rolled steel product market.

 

Companies owned by Tata, Tiscon, Etc

 

Judging by all the truckloads of billet steel I see being moved from Laem Chabang Port, It is possible Thailand is now a dumping ground for Chinese raw billet steel., and is then milled into sheet Etc here.

8 hours ago, webfact said:

an official application for dispensation on a country basis so that Thailand can be removed from the taxable countries list for steel and aluminum.

The first question to be asked by the Trump trade experts will be "what's in such an exemption for the US?" A status quo won't be a win, especially with a developing country.

 

Thailand must make at least a symbolic concession. For example, Thailand has been resisting import of US pig parts that do not sell well in the US such as head and feet to protect Thailand's pig industry. In exchange for protecting export of high-value Thai products to the US, allowing import of low-value US products is a win-win.

 

Geez, what about the extraordinary import tariffs Thailand imposes on goods

Might as well, maybe I could get a couple of large bags of Tostitos without any import tax in exchange?

I remember the recent upset that pork hooves and pig snoots cuased when America wanted to ship some to Thailand.  The steel and aluminum isn't made in Thailand, it is made in China and transshipped thru Thailand. 

I can hear the backfire