Anyone else tired of the increasingly unfair import duty into Thailand?

[GAZZPA]

Something that has been bugging me for a while is the increasingly unfair situation regarding import duty of goods into Thailand from the EU and USA (and additional countries).

The EU have been supporting Thailand as a developing country with GSP tariffs against thousands of products meaning that they can export into the EU at zero or very low tax. The result is an increasing reliance on imports from Thailand (and other Asian countries) who have grown to enjoy trade surplus and huge GSP growth over the last 10 years. For example Thailand has doubled its GSP over the last 10 years. Meanwhile however the West has struggled with trade deficits and felt the impact of the financial global crisis.

What will benefit hugely is for EU manufacturers to be able to export goods into the growing countries such as Thailand to assist with manufacturing growth in the West. However, Thailand imposes extremely heavy import duties on imports to protect its local manufacturing whilst enjoying the benefits given to it by the EU.

Now the EU have decided to try and redress the balance but only to a small degree by withdrawing GSP from a number of product categories.

Take the car industry for example. Thailand is currently (and will be for the foreseeable future) a very strong manufacturing hub for mostly Japanese cars in Asia. They are now importing huge numbers into the EU all the way form Thailand due to cheaper labour costs. However, importing cars into Thailand from the EU attracts huge import duties of 100% or more. In addition lots of car parts are manufactured here in Thailand so EU manufacturers are forced to buy spares and import into the EU.

This huge swath of manufacturing relocation from the West to East has gone too far in my opinion. I think its time Thailand opened its doors to more imports allowing the West to benefit from the increasing wealth in the country.

Right now Thailand have all the benefits and the EU keep handing over the cash, its time things rebalanced so the EU can advance its recovery.

[Thian]

Well a Benz costs much more here in Thailand then in the EU. Same as wine or anything imported.

I grew up in EU while having some Foster Parents brothers in Thailand, my parents supported them financially. Now they let me pay 10-times the Thai price when i want to visit a national park here together with my Thai wife/family.

Yes it's not fair but what can you do?

[12DrinkMore]

The poor and middle class in Thailand are not supposed to be buying any Western made goods.

This is the preserve of the rich, who gain enormous face claiming they pay more for the "Benz" in Thailand than a German in Germany.

It is all about "face" and "privilege", nothing to do with jobs or protecting the Thai industry.

[BudRight]

Thailand has free trade agreements many countries (with Australia for example), but the Thais never follow their end of the deal nor are they ever punished for this. Who can blame them for wanting more such agreements?

Edit: There's even a tax on "imported software," as if the Internet doesn't exist and the best way to bring in software is in cargo containers full of optical discs.

In the long run however the best way to grow an economy and create wealth is to remove trade barriers (thus driving down prices; something Thailand needs) and automate labor. The joke is on Thailand as they do the opposite.

[Jessi]

Yes the import duty in this country is very expensive. About 13 years ago the duty on powdered milk from Australia was over 500%. Im not sure about now.

The big problem with Thailand is because its a one way street all Thailand's way.

The car industry is moving out Nissan is going to Vietnam and Toyota has bought a parcel of land in Cambodia but I believe Toyota are moving a lot of there

manufacturing to the Philippines, Samsung have gone.

Where I live in Korat there is a lot of unemployment, people have lost their jobs and coming back to the village to live.

Lean times ahead for Thailand but thats OK they will just stick there head in the sand again.

[GAZZPA]

Yes the import duty in this country is very expensive. About 13 years ago the duty on powdered milk from Australia was over 500%. Im not sure about now.

The big problem with Thailand is because its a one way street all Thailand's way.

The car industry is moving out Nissan is going to Vietnam and Toyota has bought a parcel of land in Cambodia but I believe Toyota are moving a lot of there

manufacturing to the Philippines, Samsung have gone.

Where I live in Korat there is a lot of unemployment, people have lost their jobs and coming back to the village to live.

Lean times ahead for Thailand but thats OK they will just stick there head in the sand again.

not sure about the car industry moving out just yet. They have been making cars for a long time now and the Japanese car makers are well committed. but i could be wrong, if they are now planning some exits then it will be catastrophic news for Thailand. Cars are the second biggest industry for Thailand (just behind technology such as hard drives) so for it to move would mean thousands of companies at risk.

But what i would like to see is tougher duty rates for Thailand across EU and US.

[Thian]

Yes the import duty in this country is very expensive. About 13 years ago the duty on powdered milk from Australia was over 500%. Im not sure about now.

The big problem with Thailand is because its a one way street all Thailand's way.

The car industry is moving out Nissan is going to Vietnam and Toyota has bought a parcel of land in Cambodia but I believe Toyota are moving a lot of there

manufacturing to the Philippines, Samsung have gone.

Where I live in Korat there is a lot of unemployment, people have lost their jobs and coming back to the village to live.

Lean times ahead for Thailand but thats OK they will just stick there head in the sand again.

not sure about the car industry moving out just yet. They have been making cars for a long time now and the Japanese car makers are well committed. but i could be wrong, if they are now planning some exits then it will be catastrophic news for Thailand. Cars are the second biggest industry for Thailand (just behind technology such as hard drives) so for it to move would mean thousands of companies at risk.

But what i would like to see is tougher duty rates for Thailand across EU and US.

Do the Thai also build cars with left-side steeringwheels? Or do they only produce for the UK?

Strange that France, Germany and Italy aren't protesting about imported cars.

Also i think thai produce is getting too expensive for Europeans, China is cheaper and of a higher standard.

For clothing Bangladesh is the king.

I don't understand Europe at all, they don't do anything to protect their jobs or citizens.Now they'll get the TTI- deal with the USA so we have to buy their crappy cars as well.

[Jessi]

Yes the import duty in this country is very expensive. About 13 years ago the duty on powdered milk from Australia was over 500%. Im not sure about now.

The big problem with Thailand is because its a one way street all Thailand's way.

The car industry is moving out Nissan is going to Vietnam and Toyota has bought a parcel of land in Cambodia but I believe Toyota are moving a lot of there

manufacturing to the Philippines, Samsung have gone.

Where I live in Korat there is a lot of unemployment, people have lost their jobs and coming back to the village to live.

Lean times ahead for Thailand but thats OK they will just stick there head in the sand again.

not sure about the car industry moving out just yet. They have been making cars for a long time now and the Japanese car makers are well committed. but i could be wrong, if they are now planning some exits then it will be catastrophic news for Thailand. Cars are the second biggest industry for Thailand (just behind technology such as hard drives) so for it to move would mean thousands of companies at risk.

But what i would like to see is tougher duty rates for Thailand across EU and US.

Toyota have already closed one factory, Samsung have closed two factory's and Nissan have made the announcement a few weeks ago, they are all fed up with the B/S in this country.

[simon43]

The import tax levels vary hugely, depending upon the type of goods and country of origin.

For example, I recently imported some 'glamping' tents that were manufactured in the USA. The customs office correctly charged me 30% import tax, as stipulated in the Harmonisation Code HS database of import tax levels.

So when I needed additional tents, I sourced them from a Chinese company, having checked the import tax for those types of goods and country of origin.

As per the database, the FTA betweem Thailand and China applied and the correct import tax was 0%. I was charged an import tax of 0%.

The only downside is that these Chinese tents will probably fall apart after 3 years, whereas the USA tents have a 15 year guarantee...

[GAZZPA]

Yes the import duty in this country is very expensive. About 13 years ago the duty on powdered milk from Australia was over 500%. Im not sure about now.

The big problem with Thailand is because its a one way street all Thailand's way.

The car industry is moving out Nissan is going to Vietnam and Toyota has bought a parcel of land in Cambodia but I believe Toyota are moving a lot of there

manufacturing to the Philippines, Samsung have gone.

Where I live in Korat there is a lot of unemployment, people have lost their jobs and coming back to the village to live.

Lean times ahead for Thailand but thats OK they will just stick there head in the sand again.

not sure about the car industry moving out just yet. They have been making cars for a long time now and the Japanese car makers are well committed. but i could be wrong, if they are now planning some exits then it will be catastrophic news for Thailand. Cars are the second biggest industry for Thailand (just behind technology such as hard drives) so for it to move would mean thousands of companies at risk.

But what i would like to see is tougher duty rates for Thailand across EU and US.

Toyota have already closed one factory, Samsung have closed two factory's and Nissan have made the announcement a few weeks ago, they are all fed up with the B/S in this country.

I didn't know that, its very different from the story Thailand are spinning,,, but then whats new.

[GAZZPA]

The import tax levels vary hugely, depending upon the type of goods and country of origin.

For example, I recently imported some 'glamping' tents that were manufactured in the USA. The customs office correctly charged me 30% import tax, as stipulated in the Harmonisation Code HS database of import tax levels.

So when I needed additional tents, I sourced them from a Chinese company, having checked the import tax for those types of goods and country of origin.

As per the database, the FTA betweem Thailand and China applied and the correct import tax was 0%. I was charged an import tax of 0%.

The only downside is that these Chinese tents will probably fall apart after 3 years, whereas the USA tents have a 15 year guarantee...

I am aware that tariffs vary of course.

My point is that the EU is supporting Thailand in its exports and Thailand is shutting the door on imports for the same category of products. So EU car makers can not compete on a level playing field in Thailand.

This forces car manufacturers to invest in car plants in Thailand for the Asean which means they may cut back on EU manufacturing because they can ship directly form here.

I dont blame the car manufacturers, they are doing what is right for their businesses, but I wonder when the EU and USA are going to WAKE UP and see that we are allowing countries like Thailand to have their cake and eat it resulting in further manufacturing decline in the West.

[fang37]

Not an issue with me.

Governments impose tariffs at various rates to assist industry or the opposite according to government policy.

I have a choice as to whether & what to buy.

The only tax I would object to would be a VAT on education or health services.

[ianf]

On a micro level I am completely sick of their unfair customs duty:

Yesterday a small parcel of bicycle parts (10% + 7% VAT) arrived via DHL. I paid more than 50% - in fact if my wife had not accepted the parcel I would have refused to pay.

A Thai national Team rider needed a bicycle frame for an upcoming track competition. It took two days to get from UK to Bangkok. It has now been in BKK Customs for xx days and the competition is next weekend. No way! This is for Thailand, not for me and the customs are going through all sorts of agonies about how many % to charge. meanwhile I'm told that every hour it spends in their depot it's another 10 baht storage fees. I am so fed up with their scams.

[overherebc]

Well a Benz costs much more here in Thailand then in the EU. Same as wine or anything imported.

I grew up in EU while having some Foster Parents brothers in Thailand, my parents supported them financially. Now they let me pay 10-times the Thai price when i want to visit a national park here together with my Thai wife/family.

Yes it's not fair but what can you do?

I always like to point out to them that back in Germany 95 % of the taxis are Benz. usually have to prove it with photographs.

Gets them really wound up when I say I can't understand why people would pay so much for a taxi.

[recycler]

Tarif barriers are there to keep the competition out and to be able to sell locally made products at premium prices. As long as they can avoid competition the few rich families that own the conglommerates can keep making huge profits at the expense of the poor and middle class.

By the way most regular models of Mercedes and BMW are manufatured in Thailand and not taxed like import cars, it's just high margins based on deals between a few luxury brands.

[ronaldo0]

This is to make sure that the wealthy can bee seen in their overpriced cars !!

Imagine the fits that would be thrown if they reduced mercs, porsches, bmws to european prices !!

[pitrevie]

Japan did the same with Scotch whiskey slapped something like 400% on it so that locals would favor the inferior home produced stuff. We see the same with wine, Thailand does not produce wine or very little anyway that is drinkable so they slap almost 400% tax on wine. Time to reciprocate on any country that levies penal taxes on any imports just because they do not produce it themselves.The Scots one they are independent for example could slap 400% on Japanese cars and bikes.

[Jessi]

Tarif barriers are there to keep the competition out and to be able to sell locally made products at premium prices. As long as they can avoid competition the few rich families that own the conglommerates can keep making huge profits at the expense of the poor and middle class.

By the way most regular models of Mercedes and BMW are manufatured in Thailand and not taxed like import cars, it's just high margins based on deals between a few luxury brands.

As a good example of that. You can buy made in Thailand cheaper in Cambodia than in Thailand

Pharmacy being just one.

[Jessi]

Yes the import duty in this country is very expensive. About 13 years ago the duty on powdered milk from Australia was over 500%. Im not sure about now.

The big problem with Thailand is because its a one way street all Thailand's way.

The car industry is moving out Nissan is going to Vietnam and Toyota has bought a parcel of land in Cambodia but I believe Toyota are moving a lot of there

manufacturing to the Philippines, Samsung have gone.

Where I live in Korat there is a lot of unemployment, people have lost their jobs and coming back to the village to live.

Lean times ahead for Thailand but thats OK they will just stick there head in the sand again.

not sure about the car industry moving out just yet. They have been making cars for a long time now and the Japanese car makers are well committed. but i could be wrong, if they are now planning some exits then it will be catastrophic news for Thailand. Cars are the second biggest industry for Thailand (just behind technology such as hard drives) so for it to move would mean thousands of companies at risk.

But what i would like to see is tougher duty rates for Thailand across EU and US.

Toyota have already closed one factory, Samsung have closed two factory's and Nissan have made the announcement a few weeks ago, they are all fed up with the B/S in this country.

I didn't know that, its very different from the story Thailand are spinning,,, but then whats new.

This just came out this morning...........More to come a lot more.

http://www.thaivisa.com/forum/topic/859591-rising-anger-in-thailands-boom-to-bust-isaan/

[kerrysum]

It as been this way for years, so please tell me what is new? Double standards/double price? One for the Thai's , and another for the falong.... Kyoto agreement, is a part of it. That is why I decided not to retire in Thailand, although I do love its' people. Thailand really needs to get it's head out of its' *** . It surely will not help the common people there. Sorry my name is not Ben Dover.... Thailand needs to come into compliance with the rest of the world....

[GAZZPA]

Tarif barriers are there to keep the competition out and to be able to sell locally made products at premium prices. As long as they can avoid competition the few rich families that own the conglommerates can keep making huge profits at the expense of the poor and middle class.

By the way most regular models of Mercedes and BMW are manufatured in Thailand and not taxed like import cars, it's just high margins based on deals between a few luxury brands.

I think it is worse then that, I think they sell the cars at the price as if they were imported, hoping people do not know.

But is just proves my point. Manufacturers are forced to open plants here as the tax for imports is ridiculous. So, all of the cars they make here you could argue should have been made in Europe and imported into Thailand. Meanwhile Thailand is shipping cars to the EU on low tax.

You have to admit that it is very one-sided and considering the tough time the EU has had its time for a change.

[maidee]

i could understand that there is a tax for products also produced in thailand, aka protectionism

but what for things like supplements & others ... try that in a thai pharmacy, MAI MEE for most basic things

[GAZZPA]

Japan did the same with Scotch whiskey slapped something like 400% on it so that locals would favor the inferior home produced stuff. We see the same with wine, Thailand does not produce wine or very little anyway that is drinkable so they slap almost 400% tax on wine. Time to reciprocate on any country that levies penal taxes on any imports just because they do not produce it themselves.The Scots one they are independent for example could slap 400% on Japanese cars and bikes.

I think they should do it. The give tax relief to the Japanese for building car factories in the EU and effectively stop the exports from Thailand...

Unless of course Thailand reciprocates the assistance and drops the stupid import tax charges...

[UTH001]

Tarif barriers are there to keep the competition out and to be able to sell locally made products at premium prices. As long as they can avoid competition the few rich families that own the conglommerates can keep making huge profits at the expense of the poor and middle class.

By the way most regular models of Mercedes and BMW are manufatured in Thailand and not taxed like import cars, it's just high margins based on deals between a few luxury brands.

As a good example of that. You can buy made in Thailand cheaper in Cambodia than in Thailand

Pharmacy being just one.

Not just in Cambodia, I recently bought a HONDA garden machine at Lowe's in the US, took it back via checked-in luggage and was very surprised when I saw the label MADE IN THAILAND. The product is not available for purchase here, you get second hand stuff from Japan, at more than double the price of that new machine in the US...

[yellowboat]

Thai duties make Thailand uncompetitive in most respects to small and medium size businesses. The inbred elites of the country do not care as they do not pay it anyway. It is a problem for the little people.

[Nowisee]

Yep, tired of it all. It's even still annoying when the noodle guy charges me 60 baht when the sign says 50... oh, he gave me the special he says... yeah, the special ripoff treatment... I just laugh at him and tell him thank you for being so honest. They will never get it, figure it out or realize they're going backwards.
I'll enjoy the day I can post on here laughing about the economic difficulties they are experiencing because of their own actions. But, they'll just never get it. A few of my thai friends get it and are truly concerned about the their financial future...as they watch their "leadership" piss it all away because of stupidity...

A google search revealed nothing about nissan pulling out of thailand, do you have something to link?

Yes the import duty in this country is very expensive. About 13 years ago the duty on powdered milk from Australia was over 500%. Im not sure about now.

The big problem with Thailand is because its a one way street all Thailand's way.

The car industry is moving out Nissan is going to Vietnam and Toyota has bought a parcel of land in Cambodia but I believe Toyota are moving a lot of there

manufacturing to the Philippines, Samsung have gone.

Where I live in Korat there is a lot of unemployment, people have lost their jobs and coming back to the village to live.

Lean times ahead for Thailand but thats OK they will just stick there head in the sand again.

not sure about the car industry moving out just yet. They have been making cars for a long time now and the Japanese car makers are well committed. but i could be wrong, if they are now planning some exits then it will be catastrophic news for Thailand. Cars are the second biggest industry for Thailand (just behind technology such as hard drives) so for it to move would mean thousands of companies at risk.

But what i would like to see is tougher duty rates for Thailand across EU and US.

Toyota have already closed one factory, Samsung have closed two factory's and Nissan have made the announcement a few weeks ago, they are all fed up with the B/S in this country.

[SOTIRIOS]

...a perverse free-for-all....if you haven't noticed.....

....in every facet of life....

...like it has been said....'What can you do about it???'....nothing...

[SOTIRIOS]

...a perverse free-for-all....if you haven't noticed.....

....in every facet of life....

...like it has been said....'What can you do about it???'....nothing...

[whatawonderfulday]

Well a Benz costs much more here in Thailand then in the EU. Same as wine or anything imported.

I grew up in EU while having some Foster Parents brothers in Thailand, my parents supported them financially. Now they let me pay 10-times the Thai price when i want to visit a national park here together with my Thai wife/family.

Yes it's not fair but what can you do?

Amassing thing is you, like Thais and Americans ( you may be one of them), refer to the Benz. The last Benz manufactured was in 1923 so you are either a collector of vintage vehicles or just perhaps unable or unwilling to refer to the manufactures saloon car arm as Mercedes Benz.

Frankly I believe cars are still too cheap in Thailand especially the like of agricultural vehicles such as pick ups and the "Toytown" cars like the VIOS etc.

Quadruple the price by taxation. Increase the annual licence tax by a 1000% and get these riff raff of the roads so the likes of the general and myself can drive our more quality cars in comparative ease, and yes MB's are ten a penny so hardly exclusive and since the C and E class mass marketing, not quality either. That would be more fair would it not ? Bringing even more happiness to the Thai people surely.

And to directly address the subject no I am not tired of the unfair import duties as they are not unfair ! They are arbitrarily applied whether you are a Thai of Farang importing so same same.

You pay 10 times more to visit a National park. Thais get paid 10 times less than many nationals when working abroad so is that unfair or just market forces the same as applied here to higher entrance fees for foreigners. If you can't pay don't go, if you can then Kensiyism is working and indeed market forces come into play.

[GAZZPA]

Thai duties make Thailand uncompetitive in most respects to small and medium size businesses. The inbred elites of the country do not care as they do not pay it anyway. It is a problem for the little people.

Short term you are right of course, but longterm thats not the case.