Measures being considered to reduce influx of cheap foreign products
Expanding the list of products legally required to have Thai Industrial Standard (TIS) certificates is among the measures the Commerce Ministry is considering to combat the influx of cheaper products from overseas.
Deputy minister Napintorn Srisunpang said on Wednesday that measures are being considered to help Thai manufacturers who are constantly undercut by these cheap imports, which have two distinct advantages. Overseas manufacturers not only have lower production costs, but also benefit from tax exemption on online sales where the imported products are worth under 1,500 baht, which was introduced as a measure to boost the e-commerce industry.
Napintorn said his ministry has asked the Finance Ministry to revise the tax break for online products, ideally by scrapping it altogether and taxing them like any other imports.
Napintorn added while the ministry was considering his proposal that more products be added to the list of goods requiring Thai Industrial Standards Institute (TISI) certification before they can be marketed and sold in Thailand, this was just a proposal and would require further discussion with related agencies before any decision could be taken.
There are two types of TIS certification, one mandatory and the other voluntary.
Products that are mandated for inspection for TIS certification are those related to safety in terms of the lives and property of users, such as electrical appliances, construction materials, vehicle tyres, toys, and safety helmets.
For the voluntary TIS standard, also referred to as general TIS standards, manufacturers or importers can file for certificates with the TISI to ensure the quality of the products, despite there being no mandatory inspection required. Examples of products that have been filed for the voluntary TIS standard are fibre cement roof tiles, metal sheet roof tiles, and mixed gypsum mortar.
All products certified by the institute bear the TIS emblem on their labels.
China is one of the most prominent sources of cheap imports flooding the Thai markets. In 2023, Thailand’s imports from China rose to US$70.8 billion or 2.55 trillion baht, expanding 0.05% year on year. The kingdom’s exports to China meanwhile were only $34.16 billion or 1.23 trillion baht, contracting 0.77% year on year.
The top five imports from China are electrical machines and components, mechanical machinery, chemicals, home electrical appliances, and computer and components.
The Commerce Ministry reported e-commerce trading in 2023 growing 20% year on year to over 700 billion baht.
