Cabinet approves 5 measures to curb ultra-cheap imports

The Cabinet on Tuesday approved five measures made up of 63 operational plans to tackle the influx of ultra-cheap and often substandard products that have been flooding Thai markets, Suksit Srichomkwan, Prime Minister’s deputy secretary-general for political affairs, said.

He said the measures were proposed by the Commerce Ministry, which had discussed with more than 50 public and private organisations ways to prevent ultra-cheap products, especially from China from affecting both consumers and local manufacturers.

The essence of the five measures is as follows:

1. Increase import and customs regulations. This includes having relevant agencies conduct thorough inspections of goods at customs checkpoints and increasing the rate of full container load inspections to ensure that imported goods meet standards or certifications of relevant authorities, such as the Thai Industrial Standard Institute (TISI) and the Food and Drug Administration (FDA). Officials must check imported goods’ compliance with intellectual property laws, increase the frequency of inspections for online goods, and ensure that operators/service providers adhere to Thai laws, including preventing the use of nominees to bypass legal restrictions.

2. Update regulations to align with future trade, such as setting conditions requiring foreign e-commerce operators to register and establish legal entities in Thailand to allow authorities to oversee consumer protection and ensure fair business practices.

3. Increase tax measures in a bid to reduce imports. These include customs duties, corporate income tax, value-added tax, anti-dumping duties, anti-circumvention duties, and other safeguards. The government is also studying ways to amend the anti-dumping laws to allow the administration to file lawsuits on behalf of affected private entities.

4. Support Thai small and medium enterprises (SMEs) by promoting their business development and enhancing production capabilities, enabling them to compete on the global stage. This includes adopting new technologies and innovations in production and expanding the export of Thai goods through e-commerce.

5. Enhance and expand cooperation with trading partner countries, such as China, Japan and South Korea to secure additional channels for promoting Thai goods and services through international e-commerce. This also includes promoting Thailand as a regional hub for the aggregation and distribution of goods for e-commerce.

Suksit said the Cabinet passed a resolution that all related agencies immediately implement the measures, report their progress weekly, and hold discussions on the matter every two weeks. This schedule can be adjusted based on the situation and necessity.

Commenting on the five measures, Sanan Angubolkul, chairman of the Thai Chamber of Commerce (TCC) said on Tuesday that the government’s action is a good sign for affected business operators.

However, he suggested some pro-active measures to help combat ultra-cheap imports more efficiently, as follows:

• Discuss with Chinese authorities responsible for checking the standards of industrial and food products before import to Thailand.
• Allow businesses and the public to help survey the markets for substandard goods to increase surveillance.
• Implement payment regulations on foreign online platforms, bringing them under the supervision of the Bank of Thailand.
• Impose both VAT and sales tax on online platforms.
• Promote Thai products to attract foreign investment, as well as develop the supply chain of Thai manufacturers
• Increase anti-dumping measures in more targeted products