Thailand Tightens Scrutiny on Exports to US Amid Tariff Fears

Thailand's Department of Foreign Trade (DFT), Commerce Ministry, is stepping up its oversight of exports to the United States, placing 49 product categories under heightened scrutiny to prevent false claims of Thai origin. 

This move comes in response to the US imposing reciprocal tariffs, with Thailand facing a significant 36% levy announced by the previous US administration.

DFT Director-General Arada Fuangthong announced on Monday that the department is actively monitoring potential attempts by other countries to circumvent US trade measures.

The aim is to assure US customs officials of the genuine Thai origin of exported goods. The 49 monitored items include solar panels, steel lorry wheels, artificial stone slabs, and steel pipes.

Exporters of these goods will now be required to undergo origin verification by the DFT before they can obtain a standard Certificate of Origin (Form C/O) for US shipments.

This enhanced vetting process is designed to prevent tariff evasion by third countries using Thailand as a conduit. Exporters seeking a general Form C/O for exports to the United States must first pass the DFT's origin inspection before they can receive the necessary certification.

Collaboration with US customs authorities has reportedly led to a reduction in US inspections of Thai production facilities, from ten to six product types. 

Only two instances of origin misrepresentation have been identified, resulting in the DFT revoking the relevant Form C/Os and implementing measures against the exporters involved. The department has also intensified its monitoring of all Form C/O applications to ensure stricter adherence to regulations.
 

Arada stated that the DFT intends to expand the list of monitored goods. The department is closely analysing trade statistics for other product categories considered at high risk of false origin claims due to existing Anti-Dumping (AD) and Section 301 measures. 

Monitoring has recently been extended to products subject to Section 232 measures to mitigate the risk of these goods being falsely labelled as Thai. The DFT will continue to review and update its list of monitored items.

Furthermore, the DFT is maintaining close coordination and cooperation with US customs authorities to jointly combat the issue of false claims of Thai origin more effectively.