Car importers face post-audit

WICHIT CHAITRONG

THE NATION

BANGKOK: -- The Customs Department has implemented a post-audit system as authorities campaign against tax evasion on imported luxury cars, wine, liquor and cigarettes, director-general Somchai Poonsawat said yesterday.

The department also expects that the National Single Window - integrating information on exports, imports and logistics - will be 80 per cent completed this year.

Somchai said the department planned to audit all importers of luxury cars to investigate whether they paid all due taxes. It has already audited some of the approximately 50 firms, he said.

Some car importers, particularly in the grey market, have declared prices much lower than they actually are to evade taxes, according to the department.

Somchai said authorities had to obtain substantial evidence before they could collect more tax from these importers, so the department might first let them gain import clearance. "We will then implement a post-audit to find irregularities."

The Cabinet last week approved a proposal by the Commerce Ministry to ban imports of bodies of used cars. The move is aimed at preventing imports of luxury cars as auto parts to pay less tax. Excise tax on complete luxury cars is 180-300 per cent.

Previously about 800-900 used-car bodies were imported every month, but recently that number has dropped to about 200-300 per month, he said.

Importers of other products such as wine, liquor and cigarettes that are subject to high import tariffs and excise taxes were also suspected of declaring artificially low import prices, Somchai said.

The department has also invested in three new patrol boats as it steps up its campaign against smuggling of oil and gas out of the country. Government subsidies on oil and gas make them cheaper than in neighbouring countries, which encourages smuggling, he said.

Regarding the National Single Window scheme, Somchai said 80 per cent of 40 state agencies would be able to connect their export, import and logistics data by the end of this year.

-- The Nation 2012-04-21

"The department has also invested in three new patrol boats as it steps up its campaign against smuggling of oil and gas out of the country. Government subsidies on oil and gas make them cheaper than in neighbouring countries, which encourages smuggling, he said"

Bit of strange statement...go and have a look around the backstreets of Songkhla and you will find Malaysian fuel for sale which is cheaper than Thai fuel, therefore this suggests fuel is being smuggled into Thailand from Malaysia, cant comment on Cambodia however, there may in fact be fuel smuggled from Thailand into Cambodia

I would have thought easy to implement pre import clearance, find out from the manufacturers (i'm sure they will comply as their the ones affected ) the ex works price in the country of origional manufacture then add some profit from selling dealer (if none or a loss sure government agengy in that country will be interested) add shipping then have a A & B compound at the one and only import port, vehicles that have been correctly declared go into compound A to await clearance, payment of taxes and realease, vehicles that appear to be under valued go into compound B to await thorough investigation when time.

This could be interesting. I wonder how many companies have paid more to import at some entry points? Will this also show in the post audits?

Companies should be "lawyered up" before they come a-knockin'. I would love to see this backfire, even just once against the customs.

i agree ! approved. please go ahead

I would have thought easy to implement pre import clearance, find out from the manufacturers (i'm sure they will comply as their the ones affected ) the ex works price in the country of origional manufacture then add some profit from selling dealer (if none or a loss sure government agengy in that country will be interested) add shipping then have a A & B compound at the one and only import port, vehicles that have been correctly declared go into compound A to await clearance, payment of taxes and realease, vehicles that appear to be under valued go into compound B to await thorough investigation when time.

Don't be stupid - you are closing too many loopholes for corruption to profit.