PMTL defends against FBA violation

The source had said the department's examination, as requested by the Department of Special Investigation (DSI), found that the company operated in variance to its registration with the department.

The department also looked into PMTL's shareholding structure. If it is owned by a third party, it could lose its protection under the US-Thai Treaty of Amity.

In a statement, PMTL said that since 1991, the company has complied with the treaty, which allows an American company to conduct any type of business in Thailand with certain exceptions.

Those prescribed businesses include communications, transport, fiduciary functions, banking, exploitation of land or other natural resources, or domestic trade in indigenous agricultural products.

"Our business relates to the import and sale of cigarettes, as well as related activities, and clearly does not fall within any of these prohibited categories. Therefore our business is also not in breach of the FBA. PMTL is in full compliance with all conditions required for the receipt of protection under the US-Thai Treaty," the company said.

PMTL also said it is a juristic person incorporated in the state of Delaware in the United States and operates here through a branch office. PMTL is not owned or controlled by third-country nationals. It is owned 100 per cent by a US corporate shareholder and its ultimate parent is Philip Morris International Inc, which is a US-incorporated company.

The company stressed that it has acted lawfully. And it regretted that the Business Development Department's "damaging" information was leaked to the press, before allowing the company to defend itself.

The DSI has pressed ahead with the charge that PMTL underpriced imported cigarettes to evade taxes, which could see the company liable to pay Bt68 billion.