FTI calls for updating of Thai Customs regulations

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FTI calls for updating of Customs regulations
Erich Parpart
The Nation

BANGKOK: -- The Federation of Thai Industries (FTI) said Customs regulations had to be urgently amended to facilitate business and promote fairness, while the new government should pay close attention when it comes to changing industrial laws.

Kitti Tangjitrmaneesakda, FTI's secretary-general, said the current regulations that have to be met by most industries are very troublesome because they are outdated - especially Article 27, which regulates smuggling, technical or human error, and tax-evasion laws.

The Customs Act dates back to 1926. He went on to say that the current rules under Article 27 were too broad and did not differentiate between actual crimes and simple human error, while the punishment was too harsh for people who unknowingly bring in undeclared or restricted products through various ports of custom.

The punishment for human error is the same as the punishment for smugglers, who are fined four times the price of the smuggled goods plus tax.

Kitti said this was "unfair" for those who bring in restricted goods unknowingly.

"For instance, when operators import tuna to be canned locally, as Thailand is a leading exporter of the product, they have to acquire raw materials from fishermen and sometime there is yellow-stripe scad stuck in the shipment unknowingly.

Now, because yellow-stripe scad is a protected species and a restricted product, operators end up being fined. However, this is a technical error as the operator has no intention of evading tax, also it is impossible for operators to know how many yellow-stripe scad are in the container beforehand, so applying this punishment is too harsh for a unintentional act," he said.

Kitti said other industries that had to mostly rely on the import of raw materials to make their products, such as the energy industry, were also experiencing the same problems from this troublesome rule.

"The operators pay the right taxes, go through correct regulations and have no intentions of evading tax. If you say they are wrong because they don't have the right papers as everyone should know the rules, then that's acceptable, but you cannot issue capital punishment to someone for stealing a glass of water. Punishment must be in proportion to the crime," he added.

Kitti said the new customs regulation should separate technical error from smuggling laws and punishment, and apply suitable fines for crime based on intention.

He also suggested that the Customs Department update its website and offer easy access to information on customs procedures and rules, as some vital information is missing and the data on the site is either incorrect or outdated. The website should also provide links to other agencies that have related regulations to the existing customs rules, he added.

As for the Factory Act, the FTI has suggested that the process of issuing permit number 4 (Ror Ngor 4) to open a factory should take less than 90 days.

Also, the Industry Ministry should be informed if there is corruption in the process, since some people can still manage to obtain the licence faster than others because they have the "right connection".

Source: http://www.nationmultimedia.com/business/FTI-calls-for-updating-of-Customs-regulations-30242826.html


-- The Nation 2014-09-09

[jaidam]

Could the author point out in which country the yellow-striped scad (a prolific trash fish found from Persian gulf to mid Pacific) is protected?

[kingalfred]

Custom Laws from 1926 says it all.

[chainarong]

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Custom Laws from 1926 says it all.

Not only custom laws, all of their laws are back in the 1800 thinking, that serves a particular purpose .

[Tuskfish]

Could the author point out in which country the yellow-striped scad (a prolific trash fish found from Persian gulf to mid Pacific) is protected?

I understand there are bag limits on them in NSW and WA in Australia, possibly other states too - but thats probably only for recreational fishing

Either way the real issue here is that if they want to catch millions of fish for export they should be using a sustainable method!!

i.e. ensuring they only take what they seek + not taking so much + investing a shitload more in re-population

I say fine them for every violation plus fine them for unsustainable practices and blatant hypocrisy between commercial and recreational laws too

[KhnomKhnom]

I thought that the real idea for customs charges is to tax incoming items that are duplicates of what a Thai company makes or sells. That is reasonable to try to protect domestic companies from foreign competitors.

HOWEVER, customs is now just another way to grab money. There are items that do not exist anywhere in Thailand, why should importing those things cost extra money?

I know I know....... grab what can...............

[kingalfred]

One thing thats certain about Thailand, it's people,institutions and thinking. Not progressive.

[rickirs]

Custom laws over 80 years old should certainly be re-examined for relevancy and effectiveness. But be careful of going too far towards more lenient laws. Calling it "unfair" for those who bring in restricted goods unknowingly or unintentionally to be fined is an open loopehole bigger than a trawler. It puts all the burden on the State and no burden on the importer; the State would have to rely on confessions to assert the fines. The law need only to be applied "equally" without exceptions - importers will quickly self-educate themselves and their employees to stay in compliance to avoid fines, lost profits, and paychecks.