Up to 10,000 luxury cars smuggled a year: Thailand

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Up to 10,000 luxury cars smuggled a year
The Nation



BANGKOK: -- An average of 5,000 to 10,000 luxury cars are smuggled into Thailand or imported off authorised dealers each year, costing billions of baht in lost import and trade tariffs, a senior Federation of Thai Industries official said yesterday.

The four brands most affected by smuggling and tax avoidance scams or imports through independent dealers are BMW, Mercedes, Lexus and Rolls Royce, said Suparat Sirisuwannangkura, chairman of the FTI's Automotive Industry Club.

The practices worried foreign auto makers, who are considering moving production bases to neigbouring countries if they continue, while certain Japanese producers may stop complete knocked down (CKD) assembly here because their business is hurt by lower prices and great availability of smuggled or illegally imported luxury cars, Suparat said.

Citing an FTI report in 2011, there were 5,000 luxury cars entering Thailand through various channels, resulting in a total of Bt44.4 billion lost - Bt8.6 billion in import tariff, Bt32 million in customer grievances due to lower quality and repair, and a risk of their vehicles being seized after arrests and prosecution, and subsequent fourfold fines, he said.

The accumulative losses in the following two years should amount to Bt100 billion, given the rise in the annual average from 5,000 to 10,000, he said.

Continuing on the 2011 report, Suparat said that there were three channels for luxury cars entering Thailand - smuggling of parts that were later assembled, which accounted for 80 per cent of the 5,000 cars and Bt7.6 billion in lost import tariff; complete-built-up (CBU) import (10 per cent and Bt1.04 billion in lost tariffs), and imports of second-hand cars made legitimate through change of fabricated ownership (2 per cent and Bt89 million).

Meanwhile, senior Department of Special Investigation official Wannaphong Khotcharak warned owners of smuggled luxury cars or illegitimately-assembled cars not to remove computerised vehicle control units, as the practice may result in permanent damage to their cars and doing so might not escape detection by DSI inspectors.

The DSI have appointments today with owners of four luxury cars. Inspections are underway to verify authentication of ownership and import registration documents of 548 luxury cars owned or bought by rich people on a DSI list.

-- The Nation 2013-06-25

[lujanit]

Maybe if the import tax on luxury vehicles was not so ridiculously high the problem might not exist.

[A Member]

Once again somebody knows exactly what's going on and once again nothing pro-active is done to deal with it.

[Mampara]

Once again somebody knows exactly what's going on and once again nothing pro-active is done to deal with it.

See, no corruption, no money, one can only come to this conclusion when the assets are well over the income

[bigbamboo]

Now at least my wife believes me when I tell her the reason I won't buy a 'Benz' is because the only people who drive luxury imported cars in Thailand are government officials, criminals and policemen and not because I'm stingy!

[lovetotravel]

Maybe if the import tax on luxury vehicles was not so ridiculously high the problem might not exist.

Crazy laws like this are what allows government officials to prosper. It's called "legalized corruption"!

[ezzra]

" Citing an FTI report in 2011, there were 5,000 luxury cars entering Thailand through various channels, resulting in a total of Bt44.4 billion lost - Bt8.6 billion in import tariff, Bt32 million in customer grievances.."

This amount is peanuts compare to the huge, massive losses on the rice scheme that the

Thai government seems to treat it as just " cost of staying in power " item.

[slapout]

The laws were written/passed by those who are benfiting from it. This does seem to be part of the political/business connection in many countries, but again Thailand is the hub of criminal activity in SE Asia and pushing fo move to the top on the world wide scale.

The estimate of 10,000 entering the country vs 5,000, is that the upper estimate on those who figured another route for import? other than tea money. Another given, 'no honor among thieves'.Someone may have to explain another inactive posting, but it will be a private matter, within the government sector.

[NongKhaiKid]

Wouldn't it serve the government right if foreign manufacturers did move to other countries although I'm sure the official line would be they had been asked to leave as they were indulging in business practices unacceptable in Thailand ?

[jmccarty]

"Bt44.4 billion lost - Bt8.6 billion in import tariff"

The math is a bit baffling when import duty is between 187.47% & 328%

If on average, a 2501cc to 3000cc Mercedes or BMW costs US$50,000. Import duty for each is 243.94% http://www2.customs.go.th/Customs-Eng/PersonalVehiclesPermanent/PermanentImport.jsp?menuNme=PersonalPer

Import duty is $243.94 for every $100 or Bht 243.94 for every Bht 100

5,000 cars x $50,000 = $250,000,000 before taxes and duties or Bht 7,750,000,000 x 243.94% = Bht 18,905,350,000 or a total of Bht 26,655,350,000 all inclusive. Somehow the above says the import duty is less than the car value?

[Hockeybik]

Maybe if the import tax on luxury vehicles was not so ridiculously high the problem might not exist.

Duh...

[Neilly]

The practices worried foreign auto makers, who are considering moving production bases to neigbouring countries if they continue, while certain Japanese producers may stop complete knocked down (CKD) assembly here because their business is hurt by lower prices and great availability of smuggled or illegally imported luxury cars, Suparat said.

If it wasn't for the dumb-ass import tariffs then there wouldn't be a bl00dy market for smuggled cars (and bikes) ...<deleted>

[Pib]

Since it's usually Thai HiSo's of all varieties driving these luxury vehicles this issue won't stay an issue much longer...it will soon fade from the media's attention as behind-the-scenes pressure is applied...and I bet you a ton of pressure is being applied right now!

[StefanBBK]

 

The practices worried foreign auto makers, who are considering moving production bases to neigbouring countries if they continue, while certain Japanese producers may stop complete knocked down (CKD) assembly here because their business is hurt by lower prices and great availability of smuggled or illegally imported luxury cars, Suparat said.

 

If it wasn't for the dumb-ass import tariffs then there wouldn't be a bl00dy market for smuggled cars (and bikes) ...<deleted>

right. Cut down tax on cars, encourage modern cars that consume little.

Sent from my GT-I9100 using Thaivisa Connect Thailand mobile app

[rookball]

may i ask if the owners are in anyway aware that their cars are smuggled ones?

lets say im keen in a used 7 series from a car dealer, how do i go around to see if everything is legal?

[kurnell]

I was actually going to open a new topic on this very subject after seeing a farang test driving a brand new Lambo out near my place on Sri Nakarin rd. I understand that there are farangs making a bit of dollar out her on good expat packages, but can they really afford tens of millions for a new super car?

[Wavefloater]

Now at least my wife believes me when I tell her the reason I won't buy a 'Benz' is because the only people who drive luxury imported cars in Thailand are government officials, criminals and policemen and not because I'm stingy!

.....are government officials, criminals and policemen.....

Is that the same as criminals, criminals, and criminals?

[bangkokstick]

Now at least my wife believes me when I tell her the reason I won't buy a 'Benz' is because the only people who drive luxury imported cars in Thailand are government officials, criminals and policemen and not because I'm stingy!

But the truth is that you are stingy 555

:-)

[bangkokstick]

may i ask if the owners are in anyway aware that their cars are smuggled ones?

lets say im keen in a used 7 series from a car dealer, how do i go around to see if everything is legal?

Just buy it at an official BWM dealer ! So easy !

[bangkokstick]

Ridiculous car makes dare to talk about loss when they make yearly billions profit !

I feel ashame to be part of their profit but at least a car bought legally brings a lot of money to the government, hope they will use it wisely.

[scorecard]

Maybe if the import tax on luxury vehicles was not so ridiculously high the problem might not exist.

Crazy laws like this are what allows government officials to prosper. It's called "legalized corruption"!

10,000 a year, that's about 27 every day (on a 7 day week basis).

Nothing happens until there's fire on a big transporter which attracts public attention.

27 every day, no officials noticed?

I don't believe they didn't know and know the extent, in detail.

Power and corruption, rules everything.

[BrianCR]

The practices worried foreign auto makers, who are considering moving production bases to neigbouring countries if they continue, while certain Japanese producers may stop complete knocked down (CKD) assembly here because their business is hurt by lower prices and great availability of smuggled or illegally imported luxury cars, Suparat said.

If it wasn't for the dumb-ass import tariffs then there wouldn't be a bl00dy market for smuggled cars (and bikes) ...<deleted>

right. Cut down tax on cars, encourage modern cars that consume little.

Sent from my GT-I9100 using Thaivisa Connect Thailand mobile app

That doesn't really make much sense. All countries have to levy import tariffs and taxes in order to get funds to support new projects. Luxury cars are for the rich so let them pay for them regardless of how high the taxation is! All governments need an income so would you like to see the money raised from luxury cars dropped and the same amount of taxation placed on, let's say,rice? That way the rich get their cars cheap and everyone else pays for them! Makes more sense to make sure the rate of duty is paid

[pisico]

Maybe if the import tax on luxury vehicles was not so ridiculously high the problem might not exist.

Crazy laws like this are what allows government officials to prosper. It's called "legalized corruption"!

10,000 a year, that's about 27 every day (on a 7 day week basis).

Nothing happens until there's fire on a big transporter which attracts public attention.

27 every day, no officials noticed?

I don't believe they didn't know and know the extent, in detail.

Power and corruption, rules everything.

Status Quo for a long time. Thai way. Farang can't understand Thainess

[chooka]

I have seen more luxury vehicles driving around in Thailand than I have seen in Australia. Thais seem to be pretty well cashed up and not as poor as they make out. Even a Thai made vios sold in Australia is cheaper than you can buy in Thailand.

[pisico]

Ridiculous car makes dare to talk about loss when they make yearly billions profit !

I feel ashame to be part of their profit but at least a car bought legally brings a lot of money to the government, hope they will use it wisely.

Thai government makes much more money from taxation of foreign investment than the auto makers who are the ones who put in place most of the money and who provided the training for the workers. By law, 51% of all foreign investment must be Thai.

[culicine]

Maybe if the import tax on luxury vehicles was not so ridiculously high the problem might not exist.

Maybe if the import tax on luxury vehicles was not so ridiculously high the problem might not exist.

And we simply can't have foreign marques like rollers and lexuses competing locally brands....lol...

Losses are looking as high as losses from the rice scam !

[Thai at Heart]

Once again, NO CRACKDOWN on customs corruption.

Are these lads made of teflon?

[Pattaya28]

On the plus side, all these illegal imports must generate alot of "brown envelops"

[craigt3365]

I have seen more luxury vehicles driving around in Thailand than I have seen in Australia. Thais seem to be pretty well cashed up and not as poor as they make out. Even a Thai made vios sold in Australia is cheaper than you can buy in Thailand.

The market is hot in China for all luxury items.

[belg]

come on .... lexus, mercedes, whatever in USA is costing 2 million , here 6 million

same for other brands...

who is kidding who ...