Thai Cabinet Approves Ban On Imports Of Used Vehicles

[webfact]

Ban on imports of used vehicles

The Nation

BANGKOK: -- The Cabinet yesterday approved the Transport Ministry's proposal to ban import and registration of second-hand vehicles. Four types of vehicles are targeted by the ban: motorcycles, sedans, pick-ups and vehicles that carry more than seven passengers.

The ban also aims to prevent or minimise the smuggling of parts used to assemble vehicles that cab then be sold as new.

The initiative is viewed as being beneficial to domestic auto-makers as well as for the sake of public safety because ministry officials say many illegally assembled vehicles, especially motorcycles with large engine sizes, were being used for street racing.

-- The Nation 2012-04-18

[jcw]

motorcycles, sedans, pick-ups and vehicles that carry more than seven passengers.

So what else is left? Is Thailand the only country in the world with such a bizar law ?

I am missing something here, the Gov claims that Thailand is going to be the Detroit of Asia car manufacturing. Take that with a grain of salt. But, it is true that many cars are manufactured in Thailand and sold domestically. so why are used cars here so dam_n expensive, I mean crap boxes.

Old clapped out junk that you could easy buy for $500-$1000 in USA, Australia or Europe you have to pay $6000+ in Thailand.

Edited April 18, 2012 by jcw

[necronx99]

motorcycles, sedans, pick-ups and vehicles that carry more than seven passengers.

So what else is left? Is Thailand the only country in the world with such a bizar law ?

Well they helpfully left sportscars out of the list...

[mca]

Surely that will cause untold grief for those legitimate grey import dealers? I mean it's not all Sombat's Chop Shop.

[Thai at Heart]

The articles before referred to people possibly finding a way to get around the taxes because the customs department didn't charge tax properly. The stuff is often brought in as personal property. The issue is not importing second hand vehicles, it is the ridiculous taxes that people go all out to avoid and corruption in the customs dept.

Of course tax reform and stopping corruption needs some work, so better to ban them all together. That will definitely stop people trying to avoid 250% tax?

[Unkomoncents]

The move is beneficial to the Thai government, which couldn't even begin to contemplate the logistics of properly taxing its own populace (much like the Philippines), and so must resort to extortionist taxes on arbitrarily-decided "categories" of luxury goods. All this does is drive wealthy Thais to pay for low-cost flights to Hong Kong and Singapore to go shopping. Because enforcement is so lax, on the whole in Thailand, clever people just find ways of getting around new laws and loophole-fillers. I'm sure no one is quaking in their boots about this one. Every time the government feels its being cheated here, it immediately issues a pointless statement (because if the administration could actually DO anything about this, they would just properly enforce existing rules, rather than issue statements about how next time, by golly, it's going to be different and they're actually going to do something about all this wanton thievery of the poor, honest Thai government).

[marinediscoking]

"The ban also aims to prevent or minimize the smuggling of parts used to assemble vehicles that can then be sold as new."

The way I also read it is they are stopping used parts from entering as well. So if you need a special part from abroad seems you could be fked.

Edited April 18, 2012 by marinediscoking

[apalink_thailand]

motorcycles, sedans, pick-ups and vehicles that carry more than seven passengers.

So what else is left? Is Thailand the only country in the world with such a bizar law ?

I am missing something here, the Gov claims that Thailand is going to be the Detroit of Asia car manufacturing. Take that with a grain of salt. But, it is true that many cars are manufactured in Thailand and sold domestically. so why are used cars here so dam_n expensive, I mean crap boxes.

Old clapped out junk that you could easy buy for $500-$1000 in USA, Australia or Europe you have to pay $6000+ in Thailand.

In my opinion, Thailand needs the tax revenue from these kinds of items. The majority of citizens here do not pay any personal income tax. Most of the small businesses are not registered as businesses nor submit any VAT or income taxes. Therefore, tax revenues must largely come from import and excise taxes plus the VAT system. Furthermore, the lowering of taxes on vehicles will also put more pressure on the road infrastructure (even more cars) which we all know is pretty bad already.

[PaulHamon]

Old clapped out junk that you could easy buy for $500-$1000 in USA, Australia or Europe you have to pay $6000+ in Thailand.

This is pretty obiously it's call supply and demend.

In the 'west' you have generally weathier people, who have been told time and time again the new is better and they can afford it, so they buy new often, this leaves plenty of second hand cars in a devaluted market place for them.

In Thailand you have alot of people on very very very basic wages, they still need cars, most people can afford to purchase new ones, or even near new, they have to WAIT until it's been handed down 4-5 times before they can get move up from a motorbike.

So, Supply of Second hard cars is scarse (relavity) plus Demand for Second hard cards is high (relavity)... PUSHING up the prices!

If you look at the second hard market overall in Thailand is much higher for most products than the west.

Please excuse my bad spelling.

[cacruden2]

the road infrastructure (even more cars) which we all know is pretty bad already.

Actually, the road infrastructure is actually quite good for a developing nation. Been in quite a few where outside of the major city - you could NOT drive a car - in fact rental agencies would not insure it outside of city unless you rented a rugged jeep.

[navara]

I guess that the Government is done with all problems what comes with these imports and illegal imports. Next to that they miss a lot of tax income too. It seems that more complicated issues can not be solved here, so they use the big ax to " solve " things. Why not make imports more easy, but have every vehikle be tested before it is allowed on the Thai roads? Keep strickt rules and procedures and ofcourse tax payments and payment for the inspection and testing. Tja.... it seems that we all have to drive a Thai eco car or a Rayong pickup. Arai ka dai.

[apalink_thailand]

"The ban also aims to prevent or minimize the smuggling of parts used to assemble vehicles that can then be sold as new."

The way I also read it is they are stopping used parts from entering as well. So if you need a special part from abroad seems you could be fked.

I haven't read the new law but I am aware of quite a few shops here that sell imported used parts for Japanese cars at rates much lower than the OEM parts from dealers. These "used" parts are taken from relatively new vehicles in Japan (and Singapore) that did not pass strict road worthiness tests and then exported to Thailand and other parts of the world. The large auto manufacturers are understandably upset.

[ShanePashen]

Look I don't profess to be an expert on economics.

But thishis just seems plain ludicrous.

Can someone explain the reasoning to me behind this decision.

It doesn't seem to make any sesne.

[Javabear]

I can understand the protectionary taxes that are charged for vehicles that compete with vehicles that are made here but <deleted> let us import our sports cars and luxury cars! No car company doing manufacturing in Thailand currently makes anything comparable. Thailand...land of crappy cars.

[apalink_thailand]

the road infrastructure (even more cars) which we all know is pretty bad already.

Actually, the road infrastructure is actually quite good for a developing nation. Been in quite a few where outside of the major city - you could NOT drive a car - in fact rental agencies would not insure it outside of city unless you rented a rugged jeep.

Sorry I wasn't clear. I was referring to the amount of road space available in Thailand, not the condition of the roads.

[anon467367354]

ban imported cars to prevent street racing? I think that's a bit of a stretch. I thought the police are supposed to prevent reckless driving.

[vahack]

some hi-so a/holes got around the extremely inappropriate auto import tax, so they ban used imports nationwide.

same same..

[Pib]

The initiative is viewed as being beneficial ......for the sake of public safety......

Oh gosh, it took me five minutes to pick myself up off the floor from laughing so hard...for sake of public safety the govt says...I'm sure this restriction on the import of used vehicles will make a major reduction in all the dangerously maintained and loaded vehicles on Thailand's roads everyday. Oh gosh, excuse me, I'm falling to the floor again in laughter....

[alant]

another example of why the Thai economy is in better shape than most western economies. simply block all competition.

it help also to attend economic meetings and talk about the dangers of protectionism.

about time the west started to learn from the east.

[drdoom6996]

motorcycles, sedans, pick-ups and vehicles that carry more than seven passengers.

So what else is left? Is Thailand the only country in the world with such a bizar law ?

I am missing something here, the Gov claims that Thailand is going to be the Detroit of Asia car manufacturing. Take that with a grain of salt. But, it is true that many cars are manufactured in Thailand and sold domestically. so why are used cars here so dam_n expensive, I mean crap boxes.

Old clapped out junk that you could easy buy for $500-$1000 in USA, Australia or Europe you have to pay $6000+ in Thailand.

Totally agree with this quote.

[Xonax]

If you can´t stop the corruption in customs department, just ban import of used cars and the problem is solved. Not?

Thailand will never move up from their third world status, as long as they are not willing to fight corruption.

[Artamus]

" for the sake of public safety"....

I would have thought the nut behind the wheel had a lot more to do with road safety.

[JML]

This is simply ... crazy. There must be something corrupt going on here.

A quick Google search seems to show that the only country which has done this is Zimbabwe, and they have even stopped this ludicrous law. I hope the Thai government is not taking its cues from a country like this, despite K. Nalinee Taveesin's connection to that government (http://www.thaivisa.com/forum/topic/527183-new-thai-minister-nalinee-on-us-blacklist/page__st__50__p__4990795__hl__+us%20+government%20+blacklist%20+yingluck%20+cabinet#entry4990795).

Many small companies cannot afford to purchase a fleet of new vehicles for their businesses.

How does this affect driving cars over the border? Will there be special dispensations for security teams bringing over their own vehicles? That last is a rhetorical question, but I wonder if the law covers this.

There is a grey market out there for parts and vehicles, especially motorcycles. It is because of the outrageous taxation levels the government imposes. They fix that issue, and suddenly there will be more tax revenue coming in from vehicle purchases, not less.

[TackyToo]

Will they ever run out of ideas to create a new system of bribery and corruption? Well, at least jet ski's are not on the list!

[jonclark]

Old clapped out junk that you could easy buy for $500-$1000 in USA, Australia or Europe you have to pay $6000+ in Thailand.

This is pretty obiously it's call supply and demend.

In the 'west' you have generally weathier people, who have been told time and time again the new is better and they can afford it, so they buy new often, this leaves plenty of second hand cars in a devaluted market place for them.

In Thailand you have alot of people on very very very basic wages, they still need cars, most people can afford to purchase new ones, or even near new, they have to WAIT until it's been handed down 4-5 times before they can get move up from a motorbike.

So, Supply of Second hard cars is scarse (relavity) plus Demand for Second hard cards is high (relavity)... PUSHING up the prices!

If you look at the second hard market overall in Thailand is much higher for most products than the west.

Please excuse my bad spelling.

Sorry but I disagree. Most second hand car prices are high , not because of supply or demand, but because sellers think their car is still worth the same price they paid for it three years ago, in to days market. Put simply the seller wants to sell it today for roughly the same price he / she paid for it. The concept of depreciation has yet to visit these shores.

[vahack]

Why not make imports more easy, but have every vehikle be tested before it is allowed on the Thai roads? Keep strickt rules and procedures and ofcourse tax payments and payment for the inspection and testing. Tja.... it seems that we all have to drive a Thai eco car or a Rayong pickup. Arai ka dai.

you can't enforce anything when many 'authorities' down to the lowly customs inspector takes bribes.

we have a nice sedan for family trips, but we generally drive our 2 Nissan March's for daily use. they are cheaper to operate and easier to park. i sold my Mercedes (and gave up dreams of owning another one) when i moved to Thailand. at these taxes, its better to build another house or 2 than buy a Merc.

[drdoom6996]

The initiative is viewed as being beneficial ......for the sake of public safety......

Oh gosh, it took me five minutes to pick myself up off the floor from laughing so hard...for sake of public safety the govt says...I'm sure this restriction on the import of used vehicles will make a major reduction in all the dangerously maintained and loaded vehicles on Thailand's roads everyday. Oh gosh, excuse me, I'm falling to the floor again in laughter....

This is for the sake of the government. Just like rverything else since July. And they call this a democratic society. That's what I'm laughing at.

[mayday49]

It seems to be another way "the man" can keep "the Brothers" down and in DEBT..........the economics of which is stupefying............

[stevehaigh]

i guess second hand car and bike prices aren't high enough already, so need to stomp on any possible competition

Top Gear did a piece a few months ago where the presenters bought top of the line 2nd hand cars for about 7000 pounds. Clarkson got a fantastic looking, fully loaded, high end merc that looked like new for about 7 grand so that's about 350000 baht. over here the same car would probably sell for 2-3 million.

[pipo1000]

I have a legally imported bike for sale which isn't available in the local market.............it just doubled in price