Foreign chambers welcome planned Customs overhaul

"It's a big step in the right direction that can help improve Thailand's competitiveness in the global trading environment," said Nandor von der Luehe, chairman of the JFCCT, which is the umbrella body for 30 Thai-foreign chambers and business associations representing about 9,000 companies.

"With so many major global manufacturing operations now located in Thailand, it is essential that they are able to predict the cost of their imported specialised components and materials and are also able to bring them into the country efficiently. Without that predictability and efficiency, Thailand-based plants lose some of their global competitiveness. There has been a lot of unpredictability in the system, and Pradit's reforms should help reduce uncertainty and increase transparency," he said in a statement.

He said one of the biggest grievances among businesses was that the Customs Department does not confirm how a product will be classified for duty, or how its duty will be calculated prior to the product being ordered. Even after that, there can be variations in how the valuation is made from shipment to shipment.

"The JFCCT are especially pleased that the draft law to be proposed will allow for flexibility in assessing penalties, make it easier for importers to get impartial, judicial review of grievances, and that there can now be room to accommodate genuine mistakes when assessing penalties. We look forward to the new draft law and working closely with the ministry on implementation," he added.

Pradit announced the planned overhaul on Wednesday.

Under the proposals, a Customs Clinic will be established to provide importers with advance rulings on customs classification and the valuation method to be used in assessing customs duty, as well as notification of all licensing requirements.