Thailand's PACC Asks For British Help In Stamping Out 'Grey Market' Car Trade

[01322521959]

I am glad that most of us think in the same way. I had a chat with a Thai friend of mine, who maintains that the high import duty protects Thailand's car producers. This I totally disagree with as who in the market for a Bentley or Jag is going to consider the purchase of a cr***y Altis or such like. It's the same with motorbikes, the sky high import duty makes importing a large bike impossible. Reduce import Tariffs and in the long term everyboy will win. It would be great to see more interesting vehicles on the road. Get rid of these draconian protectionist policies.

[BrianCR]

If it wasn't so financially beneficial to try to take advantage of the Thai government's lax oversight standards, then nobody would do it. 39 million baht?! For a Bentley?! You can buy 39 houses in Bangkok with that kind of money. That's just ridiculous. The Thai government creates these "grey" and "black" markets and then sits there scratching its head trying to figure out how to stamp them out. Watching the legislation process in this country is hilarious. The basic modus operandi is to create a law banning/taxing a particular action, to which the government AND public responds by immediately creating series of loopholes to get around said action. Then they set about making laws to get rid of the loopholes and so more loopholes have to be opened. The process just repeats itself ad infinitum...it's so fundamentally insincere.

39 houses in Bangkok? Tell me more - tell me where!!

[BrianCR]

I am glad that most of us think in the same way. I had a chat with a Thai friend of mine, who maintains that the high import duty protects Thailand's car producers. This I totally disagree with as who in the market for a Bentley or Jag is going to consider the purchase of a cr***y Altis or such like. It's the same with motorbikes, the sky high import duty makes importing a large bike impossible. Reduce import Tariffs and in the long term everyboy will win. It would be great to see more interesting vehicles on the road. Get rid of these draconian protectionist policies.

Apparently Harley Davidson sold an amazing 39 new motorbikes in Thailand last year!!! Not bad for a Country with 68 million people and where the most popular mode of transport is the motor bike

[Unkomoncents]

If it wasn't so financially beneficial to try to take advantage of the Thai government's lax oversight standards, then nobody would do it. 39 million baht?! For a Bentley?! You can buy 39 houses in Bangkok with that kind of money. That's just ridiculous. The Thai government creates these "grey" and "black" markets and then sits there scratching its head trying to figure out how to stamp them out. Watching the legislation process in this country is hilarious. The basic modus operandi is to create a law banning/taxing a particular action, to which the government AND public responds by immediately creating series of loopholes to get around said action. Then they set about making laws to get rid of the loopholes and so more loopholes have to be opened. The process just repeats itself ad infinitum...it's so fundamentally insincere.

39 houses in Bangkok? Tell me more - tell me where!!

Go to out on the far outskirts of Bangkok (near the airports) and have your house built. One million would be reasonable for a Thai person wanting a modest house; I hear of people doing things like that all the time. You're probably a farang though so you would have to pay quite a bit more than that.

[KIWIBATCH]

.....aaaahhh time for another HUB label...now lets see.....mmmm...... THAILAND - HUB OF HIGH IMPORT TAX ON MOTOR VEHICLES.....that will do.......

[minikev]

the ฿39 mill Bentley is a brand new all singing and dancing car all extras. The reason it is so much money is probably that the importer had to pay 200% tax. The taxes for importing cars are well over the top. Bring down the taxes as they are only used as a grey area negotiating tool for the under the table deal later.

[sparebox2]

I think Thailand ask for UK govt help is because UK Farang are in it. They take a cut in the false declaration form.

[Thai at Heart]

The nonsense of this 14 out of 31 or whatever number it supposes, is that the buyers probably wouldn't have bought the cars in the first place if they had had to pay full price, so there loss is a fictional number.

[sparebox2]

The nonsense of this 14 out of 31 or whatever number it supposes, is that the buyers probably wouldn't have bought the cars in the first place if they had had to pay full price, so there loss is a fictional number.

You talk like Thaksin. Well done. I agree with you too.

[finnomick1]

Hardly rocket science to stop. But is asking anyone from Britain who has it's own problems of grey imports the solution ? In a deal with the government, the M.T.A. ( Motor Traders Association ) all imports of second hand vehicles, other than ' personnal imports ' was stopped. So to by-pass the system, all second hand cars imported into Britain ( from the likes of Japan ) go through Ireland or Holland and Belgium.

[Fishface]

If Thais go to UK and buy a legitimate car and with Thai laws they get it back here then what has it got to do with UK . What do they want UK to do, stop selling to Thais?

[Thai at Heart]

The nonsense of this 14 out of 31 or whatever number it supposes, is that the buyers probably wouldn't have bought the cars in the first place if they had had to pay full price, so there loss is a fictional number.

You talk like Thaksin. Well done. I agree with you too.

Well, I won't quite take that as a complement. But hey, if I have an option to buy a Bentley for 10mn or 39mn which would you take?

[thaihome]

.....The import and excise duties on new cars helps protecting the hoplessly outdates domestic production of pick up trucks. These cars use a technology that was already outdates in the 1950, when these cars were designed.

Modern cars with an environmentally frendly technology and up-to-date safety features are so expensive that normal people have to buy these pick-up trucks which in other countries were declared unsafe to drive.

..

If indeed these pickup trucks are so out of date how do you explain the fact that of the some 1.5 million vehicles produced in 2010 about a million of these were pickups, half of which were exported, making Thailand the largest pikcup exporter in the world.

If you bought a pickup in Australia or other parts of Asia, it was likely made in Thailand.

Similar to most developing nations, Thailand adopted import-substitution policies in its early development stage, imposing high tariffs on imports and offering generous subsidies for import-competing industries.

At the same an excise tax scheme on domestic sales was introduced in order to enhance government revenue. A tax the rich sort of plan that populist always loves. In addition, an excise tax policy on domestically produced pickup trucks (3% vs. 30-50% on automobiles) was setup giving farmers a break. Another popular program.

There is little doubt that both the import tariff policy needs to be reviewed (and is being done as part of the ASEAN free trade agreements) as well as the domestic excise tax in order to encourage the middle class to purchase automobiles.

There have been a number of proposal to reduce the excise tax, but the only revision has been a large reduction for the “green” cars such as the Pirus and the hybrid Camrays.

The problem remains that with some 300,000 vehicles a year sold, collecting 30-50% excise tax, no government is willing to let that sort of revenue stream be reduced without being assured it will be made up in volume.

Nothing in the Thai auto industry or the tax structure would seem to merit the error filled bitter vitriol of your post. Perhaps you could explain your motivation for making it?

TH

[Sayonarax]

Aww, what do you think happens when you have extreme taxes on things. I hope its billions of baht in lost tax, your customs office is a joke! Your hands are greedy and you deserve what you get ICE.

[Sayonarax]

I think Thailand ask for UK govt help is because UK Farang are in it. They take a cut in the false declaration form.

The "UK Farang" are in on it. So your accusing British Immigration and Customs of being in on the tax loophole? Put the whiskey down.

[bangon04]

If Thais go to UK and buy a legitimate car and with Thai laws they get it back here then what has it got to do with UK . What do they want UK to do, stop selling to Thais?

Maybe double pricing specially for Thais in Europe would be the answer.?

[sparebox2]

I think Thailand ask for UK govt help is because UK Farang are in it. They take a cut in the false declaration form.

The "UK Farang" are in on it. So your accusing British Immigration and Customs of being in on the tax loophole? Put the whiskey down.

The UK Farang seller help to underdeclare the invoice.

For example: Bentley sell a car to Thai at 50,000 GBP; however, Bentley only issue an invoice of 10,000 GBP, knowingly that the Thai is going to pay Thai tax based on a value of 10,000 GBP. So UK Farang is in it too.

[sparebox2]

The nonsense of this 14 out of 31 or whatever number it supposes, is that the buyers probably wouldn't have bought the cars in the first place if they had had to pay full price, so there loss is a fictional number.

You talk like Thaksin. Well done. I agree with you too.

Well, I won't quite take that as a complement. But hey, if I have an option to buy a Bentley for 10mn or 39mn which would you take?

May Thai pay 3,000,000 for a Mini in Thailand, when the look alike Suzuki Swift is only 600,000 (before 100,000 rebate).

Some Thai people are very rich. Go ask Supoj about where he gets his money.

[belg]

stop taxing stupid crazy taxes !!!

other countries should do the same with thai cars ???

[Thai at Heart]

The nonsense of this 14 out of 31 or whatever number it supposes, is that the buyers probably wouldn't have bought the cars in the first place if they had had to pay full price, so there loss is a fictional number.

You talk like Thaksin. Well done. I agree with you too.

Well, I won't quite take that as a complement. But hey, if I have an option to buy a Bentley for 10mn or 39mn which would you take?

May Thai pay 3,000,000 for a Mini in Thailand, when the look alike Suzuki Swift is only 600,000 (before 100,000 rebate).

Some Thai people are very rich. Go ask Supoj about where he gets his money.

Those numbers are really chump change in comparison with 39mn.

And no, I wouldn't spend 3mn baht on a mini either. The entire imported car business in Thailand is just a cash washing exercise anyway. Just look at how they hold their value. It is a paper exercise in cleaning dirty money with the government getting a very decent whack out of it.

[AngryParent]

I think Thailand ask for UK govt help is because UK Farang are in it. They take a cut in the false declaration form.

The "UK Farang" are in on it. So your accusing British Immigration and Customs of being in on the tax loophole? Put the whiskey down.

The UK Farang seller help to underdeclare the invoice.

For example: Bentley sell a car to Thai at 50,000 GBP; however, Bentley only issue an invoice of 10,000 GBP, knowingly that the Thai is going to pay Thai tax based on a value of 10,000 GBP. So UK Farang is in it too.

Bentley doing this illegal thing?

Have you ever been outside your warped bubble (Thailand)?

[captainhornblower]

That's how I first read it but what I believe they are actually saying is 45% of all cars brought in by Thais from overseas. Very badly worded.

The authority has found that 14 out of 31 cars brought back by overseas Thais since 2008 might have been illegally brought in, said PACC chief Dusadee Arayawuth.

Let me get this straight, 14 cars in 4 years!!! Can't the Thais stop 14 cars themselves? They seem good at fleecing the farangs with any customs duty and they are great at catching anything that will make them even 100 Baht.

Seems like a rubbish "news" story to either make the Thais look good or the farangs as evil and bad (our police and customs failure).

TV please check your NEWS.

[Thai at Heart]

I think Thailand ask for UK govt help is because UK Farang are in it. They take a cut in the false declaration form.

The "UK Farang" are in on it. So your accusing British Immigration and Customs of being in on the tax loophole? Put the whiskey down.

The UK Farang seller help to underdeclare the invoice.

For example: Bentley sell a car to Thai at 50,000 GBP; however, Bentley only issue an invoice of 10,000 GBP, knowingly that the Thai is going to pay Thai tax based on a value of 10,000 GBP. So UK Farang is in it too.

Bentley doing this illegal thing?

Have you ever been outside your warped bubble (Thailand)?

I think Sparebox doesn't quite realise that the taxman has probably seen that one before in the UK. The lost VAT would make it unprofitable.

[burnsie]

So can my Mrs(Thai) bring back her lexus rx300 which is in her name and has owned for a couple of years,when we move back from the UK next year?

Any idea of customs costs and registration?

What I'm worried about is being stitched up by customs and them asking for a silly amount of money in tax for the car to clear the port. It might be alot less hassle just to flog it and buy a new pickup when we arrive??

Posted with Thaivisa App http://apps.thaivisa.com

[Thai at Heart]

So can my Mrs(Thai) bring back her lexus rx300 which is in her name and has owned for a couple of years,when we move back from the UK next year?

Any idea of customs costs and registration?

What I'm worried about is being stitched up by customs and them asking for a silly amount of money in tax for the car to clear the port. It might be alot less hassle just to flog it and buy a new pickup when we arrive??

Posted with Thaivisa App http://apps.thaivisa.com

Yup you can. Rule is you wouldn't be allowed to sell it for a while over here.

Indeed, by highlighting this story they will probably open a flood gate of perfectly legal imports.

[bigbamboo]

stop taxing stupid crazy taxes !!!

other countries should do the same with thai cars ???

A reciprocal import tax agreement.... nice idea!

[thaihome]

So can my Mrs(Thai) bring back her lexus rx300 which is in her name and has owned for a couple of years,when we move back from the UK next year?

Any idea of customs costs and registration?

What I'm worried about is being stitched up by customs and them asking for a silly amount of money in tax for the car to clear the port. It might be alot less hassle just to flog it and buy a new pickup when we arrive??

Posted with Thaivisa App http://apps.thaivisa.com

Your wife will be elgiable for on sea shipment (container) of used household items duty free. That is for real and my did so with no hassle (We used an agent). No backhanders of any kind was required.

The importing of a car duty free i believe is only done if you have connections in the Commerce Ministry and Customs dept either through a grey market dealer or some other means.

TH

Edited April 5, 2012 by thaihome

[Thai at Heart]

So can my Mrs(Thai) bring back her lexus rx300 which is in her name and has owned for a couple of years,when we move back from the UK next year?

Any idea of customs costs and registration?

What I'm worried about is being stitched up by customs and them asking for a silly amount of money in tax for the car to clear the port. It might be alot less hassle just to flog it and buy a new pickup when we arrive??

Posted with Thaivisa App http://apps.thaivisa.com

Your wife will be elgiable for on sea shipment (container) of used household items duty free. That is for real and my did so with no hassle (We used an agent). No backhanders of any kind was required.

The importing of a car duty free i believe is only done if you have connections in the Commerce Ministry and Customs dept either through a grey market dealer or some other means.

TH

Car has to be one year old, and you can't sell it for I think one year over here. It was originally designed as a perk for returning diplomats, which anyone can avail themselves of.

Did anyone know that if you call Thai airways direct and ask for a "returning resident" fare it exits at a far lower price than standard rates?

[burnsie]

Thanks for quick replys!!Any idea of how much cost from customs and registering car would be. Its a 2995 cc. I just get the nagging feeling some greedy high ranking official would bump up the taxes or try and have the car if we're not contacted and he knows there's a farang husband in the background??

Edited April 5, 2012 by burnsie

[thaihome]

Car has to be one year old, and you can't sell it for I think one year over here. It was originally designed as a perk for returning diplomats, which anyone can avail themselves of.

...

Importing Used/Secondhand Household Effects

Returning Thai residents who have been abroad for one year or longer, for the purposes other than touring are eligible to bring in household effects acquired abroad free of taxes and duties. In addition, nonresidents changing their residence to Thailand may import the household effects subject to the conditions stated below without payment of import taxes duties.

The term “household effects” includes all goods which are normally necessary to equip a self-contained home e.g. furniture, carpets, books, musical instruments, paintings, tableware, stereos, linens, and similar household furnishings, etc. To be eligible for tax and duty free allowance, the importers are required to have owned, possessed, and used the household effects before they return to Thailand to resume residence. It is important that the importers meet the three requirements of ownership, possession, and use. For example, if they owned and possessed the goods without using them, the goods would be subject to regular taxes and duties.

Personal effects accompanied with the owner traveling into or out of Thailand, including any goods used or will be used commercially are not eligible as household effects cannot brought in tax and duty free as the household effects

NOTE: Motor vehicles, alcoholic beverages and tobacco are excluded from this rebate