WT/TPR/M/326/Add.1/Rev.1 8 April 2016 (16-1995) Page: 1/90 Trade Policy Review Body 24 and ...

90 Pages·2016·0.64 MB·English

WT/TPR/M/326/Add.1/Rev.1

8 April 2016
(16-1995) Page: 1/90
Trade Policy Review Body Original: English/anglais/inglés
24 and 26 November 2015

TRADE POLICY REVIEW
THAILAND
MINUTES OF THE MEETING
Revision
Chairperson: H.E. Mr. Atanas Atanassov Paparizov (Bulgaria)
This document contains the advance written questions and additional questions by WTO
Members, and replies provided by Thailand.1

Organe d'examen des politiques commerciales
24 et 26 novembre 2015
EXAMEN DES POLITIQUES COMMERCIALES
THAÏLANDE
COMPTE RENDU DE LA RÉUNION
Révision
Président: S.E. M. Atanas Atanassov Paparizov (Bulgarie)
Le présent document contient les questions écrites communiquées à l'avance par les
Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Thaïlande.1

Órgano de Examen de las Políticas Comerciales
24 y 26 de noviembre de 2015
EXAMEN DE LAS POLÍTICAS COMERCIALES
TAILANDIA
ACTA DE LA REUNIÓN
Revisión
Presidente: Excmo. Sr. Atanas Atanassov Paparizov (Bulgaria)
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y
las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por
Tailandia.1

1 In English only./En anglais seulement./En inglés solamente.
WT/TPR/M/326/Add.1/Rev.1

- 2 -

PART I: QUESTIONS ON THE SECRETARIAT REPORT (WT/TPR/S/326)
SUMMARY
Page 9 (Para 8)
Question(s): As we observed that several safeguard and anti-dumping measures have been
adopted against steel products during the review period, we would like to know how did Thai
government ensure the procedural transparency while applied these measures?
(Chinese Taipei) Anti-dumping and safeguard proceedings of Thailand are set out to comply with
all rights and obligations under the WTO Agreements. Both Anti-dumping and Safeguards Acts
enable importers, exporters and other interested parties the opportunity to present their opinions
with supporting evidence. Non-confidential version of information regarding the proceeding will be
made available to all other interested parties with opportunity to respond to the claim. In addition,
in accordance with the obligations under Article 16 of the Anti-dumping Agreement and Article 12
of the Safeguards Agreement, Thailand consistently and promptly submits notifications with
regards to both measures.
Page 10 (Para 11)
Question(s): As we know that foreign companies who is interested in participating Thailand
government procurement projects is obligated to register on e-GP system for the e-market and
e-bidding methods. But the criteria for e-GP registration is relatively difficult for foreign companies
such as having Thailand Tax number and complete company registration from Ministry of
Commerce, Thailand in advance. Therefore, we would like to inquire that whether Thailand ever
considers reducing the entry barriers for foreign companies who are interested in participating the
e-GP system?
(Chinese Taipei) The e-GP registration system is applied to every supplier who is interested in
participating in the e-GP system, either Thai companies or foreign companies.
Pages 10-11, paragraphs 15 and 16: The Secretariat's Report notes that Thailand will pursue
several measures to increase domestic consumption and investment, including income transfer
programs and other fiscal stimulus. Please clarify whether Thailand has plans to implement new
subsidies to encourage consumption or support farmers.
(US) Thailand does not plan to implement any new subsidies. However, we have estimated that
the drought will be more excessive in the next year since the impact of climate changed so, we
may focus on the rural development and employment.
1 ECONOMIC ENVIRONMENT
1.3 Main Macroeconomic Policy Developments
1.3.1 Monetary and exchange rate policy
Page 17, paragraph 1.8: In addition to the recent relaxation of capital outflow controls, please
clarify whether Thailand is considering other measures regarding capital flows.
(US) The Bank of Thailand has recently announced relaxation plan on capital controls and is now
under implementation period of such plan. The BOT's capital flows relaxation plan consists of
(1) the relaxation on foreign exchange regulations to facilitate residents' holdings of foreign assets
as well as to increase the participation of non-banks in foreign exchange business and (2) the
relaxation on measures to prevent Thai baht speculation in order to increase flexibility for
non-residents in borrowing Thai baht from domestic financial institutions. For further details,
please see https://www.bot.or.th/Thai/PressandSpeeches/Press/News2558/n2358e.pdf.
WT/TPR/M/326/Add.1/Rev.1

- 3 -

State-owned Enterprises (SOE's)2
Referring to 1.4.3 in the Report by the secretariat, State enterprise reforms are considered vital to
upgrading Thailand's growth potential.
What are the plans and timeline to complete the transition from concessionary agreements to a
licensing framework in the telecommunication sector?3
(Norway): Telecommunications industry is in the transition period from concessionary agreements
to a licensing framework. The National Broadcasting and Telecommunications Commission (NBTC)
was established in 2010 as a single converged regulator for telecoms and broadcasting sectors.
NBTC is responsible for licensing for the telecom operators and the allocation of broadcasting
frequencies. The last concession agreement in the telecommunications sector will expire in 2018.
Currently, government is attempting to set up the neutral company to manage and oversee the
telecommunication infrastructures of the country. This requires the dispute resolution of
telecommunications infrastructure assets.
2 TRADE AND INVESTMENT REGIME
2.3 Trade Policy Formulation and Objectives
Page 28, table 2.1
Thailand notes that it is seeking to develop an agricultural futures exchange. What products will be
traded on the exchange and when is this expected to commence?
(Australia) The Repeal Act of the Agricultural Futures Trading Act B.E. 2542, B.E. 2558 (2015)
took effect on 6 November 2015. Pursuant to the Repeal Act, the Agricultural Futures Exchange of
Thailand (AFET) will be merged with the Thailand Futures Exchange (TFEX). The merger process
under the Repeal Act requires TFEX to launch its maiden agricultural futures trading within five
months from 6 November 2015. Following the launch, AFET will wind down its trading and will be
dissolved by 6 February 2017 at the latest. Natural Rubber Ribbed Smoked Sheet No. 3 (RSS
No. 3) will be TFEX's initial product to be traded on the exchange. For more information, please
visit http://www.afet.or.th/.
Part II. Trade and Investment Regime: Trade Agreements and Arrangements, Regional
Trade Agreements: paragraph 2.16, page 31:
It is noted that an RTA was signed with Chile in 2013 but had not yet been entered into force.
Could Thailand indicate the status on the Thailand-Chile FTA, indicate when the text of the FTA will
be released, and when the agreement is expected to enter into force?
(Canada) Thailand-Chile FTA has entered into force on 5 November 2015. The text of the
Agreement can be found at: http://www.dtn.go.th/files/FTA/TCFTA/TCFTA_-_Eng_-_00_00.pdf.
Part II. Trade and Investment Regime: Trade Agreements and Arrangements, Regional
Trade Agreements: paragraph 2.17, page 31-32:
It is noted that Thailand is in negotiations with India on the remaining goods tariff lines and on
services and investment.
What is the status of the Thailand-India negotiations and is there an expected timeframe for the
conclusions of negotiations?

2 Reference to 4.113 Thailand TPR Secretariat Report.
3 See 2.29 in the Secretariat Report.
WT/TPR/M/326/Add.1/Rev.1

- 4 -

(Canada) The FTA between Thailand and India is a Comprehensive FTA that includes Trade in
Goods, Trade in Services and Investment. Currently, the FTA negotiations have been progressed
more than 90 percent. Both countries will notify the scope of the FTA after the negotiation has
been concluded.
No time-frame.
It is noted that Thailand is undertaking an impact assessment on its possible participation in the
TPP RTA negotiations.
What is the status of the assessment and will a final report be made public?
(Canada) Currently, Thailand is in the process of conducting a comprehensive study and carefully
assessing the impacts of joining the TPP Agreement in all aspects during the period while TPP
member is undergoing internal procedure to ratify the Agreement. The final study report will be
made public when it is completed in 2016.
2. TRADE AND INVESTMENT REGIME
(2) TRADE AGREEMENTS AND ARRANGEMENTS
(iii) Preferential trade agreements
Page 33 (Para 2.23)
Could you elaborate the above duty-free quota-free preference and related technical support that
Thailand has provided to LDCs countries during the review period, particularly for its neighboring
countries in line with the AEC integration?
(Chinese Taipei) In accordance with Thailand's Duty Free Quota Free scheme, Thailand exempts
customs duties and quota for 6,998 goods (at 8-digit HS code) from the all least developed
countries as classified by the United Nations provided that a good is originating in the exporting
beneficiary country, consigned directly to Thailand and has a certificate of origin. Goods will be
considered as originating if a good is wholly obtained or produced in the exporting beneficiary
country or it has a qualify value content of not less than 50 percent of FOB value and the final
process of production is performed within the exporting beneficiary country. Due to the fact that
Duty Free Quota Free scheme Focuses only on providing market access for the least developed
countries by eliminating customs duties and quota for their goods.
2.5 Foreign Investment Regime
Page 35, paragraph 2.27
The report notes the government is considering how to amend the 1999 Foreign Business Act to
make it more investor-friendly, promote investment and enhance transparency.
What steps will the government take to improve the investment environment and which sectors
will these amendments be made to? What is the indicative timeframe for these amendments?
(Australia) The Ministry of Commerce fully understands that foreign investors are concerned with
the policy on the FBA amendment which may affect business operation of foreign investors. The
Ministry of Commerce would like to assure that Thailand has clear policy to promote foreign
investments and this law shall not be an obstacle to foreign investments.
With the issuance of the Ministerial regulation prescribing service business not subject to
application for Foreign Business Permission B.E. 2556 (2013), Securities business and other
businesses under the law on securities and securities exchange, Derivatives business under the
law on derivatives, and Serving as a trustee under the law on trust for transactions in capital
market are now excluded from (21) of List 3 annexed to the Foreign Business Act,
B.E. 2542 (1999).
WT/TPR/M/326/Add.1/Rev.1

- 5 -

Does Thailand have any specific plans to review the regulatory regimes governing key sectors such
as professional services, financial services, transport and education to promote more competition
and enhance productivity and innovation?
(Australia) Securities and Exchange Commission of Thailand (SEC) has reviewed securities
business licensing regime and the related qualifications & requirements in order to enhance
flexibility and variety of business providers in Thai capital market in response to changing business
environment and increasing competition. The review is expected to finalise by next year.
The SEC has amended the regulations to enhance product variety in Thai capital market;
(1) allowing mutual fund to invest in non-investment grade/ unrated securities with no limit but
diversification (the amended regulation for retail fund has been effective in Q2/2015) and (2) to
allow fund for accredited (or sophisticated) investor to invest in more variety of securities
(expected to finalise by 2016).
In addition, the SEC has recently launched new regulation for registered equity crowdfunding
business aiming at promote market-based financing for SMEs and start-up companies. The
regulation has been in effect since May 2015
Investment incentives are offered by the Board of Investment (BOI) with a new incentives scheme
coming into effect in January 2015 (section 3.4.2.1)."
Taking into account the information set out in paragraph 2.30, we would like to request Thailand
to provide an update of the new program implemented, including their characteristics,
requirements to be met to be a beneficiary and, if possible, a reference to the benefits that have
been achieved
(Mexico) The BOI's new incentive scheme which has come into effect from 1 January 2015, aims
to encounter the rapid changes of the current and future economic situations, to enhance
Thailand's competitiveness and to achieve sustainable development. Moreover, the new scheme is
in line with the direction of Thailand's development under the National Economic and Social
Development Plan.
Investment activities stipulated by BOI, which covering all sectors, are eligible for investment
promotion and the following incentives are granted:
 Exemption of import duty on machinery.
 Exemption of import duty on raw or essential materials used in manufacturing export products
for 1 year (extendable).
 3-8 year corporate income tax exemption.
 Other non-tax incentives such as permission to own land, facilitation for visas and work permits
for foreign experts.
However, the results from the new incentive scheme is too early to evaluate, since it has recently
come into force in January 2015.
3 TRADE POLICIES AND PRACTICES BY MEASURE
Para 3.2 Page 38
Is there a foreseen date for completion of the transposition of the binding commitments to
SA2012?
(Mexico) Thailand has undertaken domestic transposition to HS2012 and already implemented
HS2012 since 1 January 2012.
WT/TPR/M/326/Add.1/Rev.1

- 6 -

Para 3.3. Page 38
Question: Are there any additional future actions that are scheduled for the operation of the AEO
in Thailand?
(Mexico) For AEO programme in Thailand, AEO Standard Division, Customs Standard Procedures
and Valuation Bureau plans to review and extend the benefits as well as to enhance cooperation
with other authorities regarding the operation on AEO programme. Moreover, it also plans to
extend the number and categories of operators.
With regard to Mutual Recognition Arrangement, the cooperation among ASEAN Member States;
for example, experience exchange on AEO programme and MRA negotiation, are being carried out.
Page 39, paragraph 3.7
The report highlights that language used in government procurement tenders excludes foreign
products, and there irregularities in government procurement practices persist.
Given recent comments from senior Thai government figures on the need to stamp out corruption,
can Thailand elaborate on the efforts of the government to prevent irregularities in this area?
(Australia) The Regulations of the Office of the Prime Minister on Procurement B.E. 2535 (1992)
applies to all central government agencies. However, state-owned enterprises and local authorities
have their own procurement regulations. All central government agencies must abide by the
Regulations of the Office of the Prime Minister on Procurement B.E. 2535 (1992). The suppliers
can file complaints with Government Procurement Committee, if they find irregularities in
government procurement practices. Thailand is currently reforming the new Public Procurement
Act which will apply to all central government agencies, state-owned enterprises and local
authorities.
Please provide the details on any amendments to the procurement regulations now under
consideration by the government, including amendments which will enable foreign products and
organisations to compete in tenders.
(Australia) Thailand is in the process of proposing draft Public Procurement Act for the National
Legislative Assembly's consideration and amendment. However, the new Public Procurement Act
will increase more transparency, efficiency and widely open for competition.
3.2 Measures Directly Affecting Imports
3.2.1 Customs clearance
3.2.1.1 Registration and documentation
Page 40, paragraph 3.10: The Secretariat's Report notes that in the period under review
Thailand is shifting from the "gold card" scheme to an authorized economic operator system. The
process to shift beneficiaries from the "gold card" scheme started in 2013. What is the status of
the shift? Have all companies been transferred to the AEO program? What are the differences
between the "gold card" scheme and the AEO program? Which companies are eligible to apply to
the AEO program? What are the benefits to companies under the AEO program?
What is the status of the shift?
(United States) As from 2013, the beneficiaries of Gold Card Scheme are being shifted to the
Authorized Economic Operator (AEO), if the gold card importers or exporters did not apply for AEO
program, their gold card status expired on 1 October 2013. Those who applied for AEO prior to
1 October 2013 still have the rights under the Gold Card Scheme until the Customs Department
approves them as AEO operators. In brief, there are 46 importers/exporters that are pending for
the AEO approval. As a result, they still have the rights under Gold Card Scheme.
Have all companies been transferred to the AEO program?
WT/TPR/M/326/Add.1/Rev.1

- 7 -

(United States) Refer to the answer No. 1, not all companies have been transferred to AEO.
What are the differences between the "gold card" scheme and the AEO program?
(United States) Gold Card Scheme was one of the measures to facilitate import and export
procedures. The Customs Department would grant the gold card status for importers or exporters
with good record and reliable background. Meanwhile, AEO program is a measure to both secure
and facilitate global trade. The Customs Department is aware of the global security supply chain.
Thus, the Customs Department adopted the SAFE FoS by signing in Letter of Intent on
May 9, 2006 to stimulate and express the intention to implement WCO SAFE FoS.
For AEO program, its framework highlights on global trade security as well as the global trade
facilitation. The Customs Department emphasizes on the security measure of the operators. To
ensure that the operators are appropriate for AEO status, the operators shall provide necessary
documents and prepare for the following process:
 examination and verification applicants' qualification;
 on-site validation visit.
In this regard, the benefits of Gold Card Scheme and AEO program are rather similar. In
comparison, here are the benefits of Gold Card Scheme and AEO program:
Gold Card Scheme benefits AEO program benefits
 Importation  Exemption from physical examination except
Processing import procedures via "Green Line" other procedure/related laws otherwise stated
A manifest is written off after the clearance of goods or having reasonable suspicious.
The goods are exempted from examination unless it
 In case of physical examination needed, the
is a random examination
AEO cargo will be prioritized under special track
 Exportation provided.
Processing export procedures via "Green Line"
 In case of any doubt or controversial during the
The goods are exempted from examination unless it
course of undertaking the Customs procedure or
is a random examination
clearance, the operator can have a consultation
 Drawback claims as well as tax and duty process with the assigned competent officer or
compensation claims are approved at the time the customs committee at that Customs office
of filing. to seek a solution.
 Other future privileges as determined by the  In case that the goods sample(s) is required for
Director-General. laboratory analysis or assessment purposes
before clearance of goods, the sample of AEO
cargo will be taken and that shipment can be
released before final determination except other
laws or regulations pertaining customs
otherwise stated.
 Importation of goods in form of bulk cargo is
not required to deposit the security.
 The exported goods from Thailand will be
recognized by the foreign Customs
administrations through the Mutual Recognition
Arrangement (MRA), which benefit to the
clearance of goods in importing countries.
 The privileges on re-export, transshipment,
transit and duty drawback, duty compensation
and duty free zone are simplified and enhanced
as appropriate.
 Instead of 5 normal year audit, the AEO
Importer and exporter will be audited only for
the last two years from the date of importation
or exportation.
 Customs incentives on legal proceedings will be
simplified and enhanced as appropriate.
WT/TPR/M/326/Add.1/Rev.1

- 8 -

Which companies are eligible to apply to the AEO program?
(United States) The companies who wish to apply AEO shall prepare a complete application form
and necessary supplement documents, the qualifications are as follows:
Importer and Exporter Category
 Being the juristic person registered in Thailand and having the paid-up capital not less than
5 million baht;
 Having a stable financial status based on the profit shown in the financial statements certified
by auditor and submitted to the Ministry of Commerce. With that regard, the applicant's
business must gained profit for the last two accounting years retrospectively. Additionally, the
applicant's financial status shall be certified by either the Federation of Thai Industries or the
Thai Chamber of Commerce or the Thai National Shippers' Council or the Thai Airfreight
Forwarders Association or the Thai Gold Card Importer & Exporter Association;
 Carrying on its business related to import or export not less than three years and be able to
undertake the customs procedure by electronic means according to the criteria prescribed by
the Customs Department (e-customs), or hire the customs broker with AEO status or used to
hire the licensed customs broker;
 Having no customs offence record concerning smuggling according to Section 27 of the
Customs Act B.E. 2469 (1926), the offence concerning document forgery and usage of such
document according to the Thai Criminal Law. Thai Customs will retrospectively check the
customs violation records for the last three years from the date of submission the AEO
application form;
 Having a control plan, a management and an assessment against the risks in doing safely
business in accordance with the Guideline for the Security Measures in Supply Chain, details as
attached to this Customs Notification;
 Having an appropriate workplace for business and having the headquarters being located at
the address as registered at the Department of Business Development, Ministry of Commerce;
 Having never been revoked from the AEO status in the past three years from the date of
submission.
Customs Broker Category
 Receiving a permission from Thai Customs to be a Customs broker or licensed Customs broker
according to the Customs Notification No 76/2552 dated 14th October 2009;
 Being the juristic person registered in Thailand and having the paid-up capital not less than
1 million baht;
 Being a member of a customs approved association and dealing with customs clearance of
goods, not less than 3 years;
 Having a stable financial status based on the profit shown in the financial statements certified
by an accredited auditor and submitted to the Ministry of Commerce. With this regard, the
applicant's business must gained profit for the last three accounting years;
 Having no customs offence record concerning smuggling according to Section 27 of the
Customs Act B.E. 2469 (1926), the offence concerning document forgery and usage of such
document according to the Thai Criminal Law. Thai Customs will retrospectively check the
customs violation records for the last three years from the date of submission the AEO
application form;
WT/TPR/M/326/Add.1/Rev.1

- 9 -

 Being able to undertake the customs procedure by electronic means according to the criteria
prescribed by Thai Customs (e-customs);
 Having, at least, one person of full-time customs expert, certified by Thai Customs and having
workers or employees that are registered as operating staff for clearance of goods in the
number proportionate to their workload;
 Having a control plan, a management and an assessment against the risks in doing safely
business in accordance with the Guideline for the Security Measures in Supply Chain, details as
attached to this Customs Notification;
 Having an appropriate workplace for customs broker business, located at the address as
registered at the Department of Business Development, the Ministry of Commerce;
 Having Brokers' license or the authorization under the licensed customs broker scheme and
having never been revoked in the last three years from the date of submission.
What are the benefits to companies under the AEO program?
(United States) The benefits for AEO operators are as follows:
 Exemption from physical examination except other procedure/related laws otherwise stated or
having reasonable suspicious.
 In case of physical examination needed, the AEO cargo will be prioritized under special track
provided.
 In case of any doubt or controversial during the course of undertaking the Customs procedure
or clearance, the operator can have a consultation process with the assigned competent officer
or the customs committee at that Customs office to seek a solution.
 In case that the goods sample(s) is required for laboratory analysis or assessment purposes
before clearance of goods, the sample of AEO cargo will be taken and that shipment can be
released before final determination except other laws or regulations pertaining customs
otherwise stated.
 Importation of goods in form of bulk cargo is not required to deposit the security.
 The exported goods from Thailand will be recognized by the foreign Customs administrations
through the Mutual Recognition Arrangement (MRA), which benefit to the clearance of goods in
importing countries.
 The privileges on re-export, transshipment, transit and duty drawback, duty compensation and
duty free zone are simplified and enhanced as appropriate.
 Instead of 5 normal year audit, the AEO Importer and exporter will be audited only for the last
two years from the date of importation or exportation.
 Customs incentives on legal proceedings will be simplified and enhanced as appropriate.
Page 41, paragraph 3.17
In the World Bank "ease of doing business" report 2016, Thailand was ranked 49th, down from 46th
in 2015.
We would welcome advice on progress towards simplifying taxation structures, improving customs
procedures and trade facilitation to promote ease of doing business, as well as amendment to the
Customs Act.
WT/TPR/M/326/Add.1/Rev.1

- 10 -

(Australia) At present, the draft Customs Act, B.E. …, which contains provisions on the
above-mentioned issues, has been approved by the Cabinet. The draft is now under consideration
of the Office of the Council of State.
Para 3.23
Question 1: With regard to the possibility of further unilateral cuts and simplification of the tariff
structure, we would like to know whether progress has been made in the course of this year and if
not the case, if Thailand could anticipate future developments.
Does Thailand have any plan to improve its tariff structure in this area?
(Mexico, Canada, Australia) The Ministry of Finance is in the period of reformation the import tariff
structure for enhancing the ability of domestic entrepreneurs to compete and there are 2 phases.
Phase1 is the reduction of import tariff structure for goods/products that cannot be produced by
domestic manufacturers, such as machinery, tools and machinery supplies and this phase has
been operated successfully since 30 December 2014. Phase 2 is the reduction of import tariff
structure for goods/products that are not grouped in Phase 1.
Questions 3: Please share the experience and introduce the problems encountered during the
implementation of tariff reduction in the APEC List of Environmental Goods. For example, how
many kinds of environmental goods are entitled to tariff reduction? How are the specific
environmental products identified under six-digit tariff numbers?
(China) There are 3 major problems encountered during the implementation of tariff reduction in
the APEC List of Environmental Goods.
(1) The clarification of products. Most of the product's description is not practical for customs'
administration
(2) The mismatch between HS code and product's description identified in Annex C.
(3) Not every of products under each HS code are environmental-related so it is difficult to
convince stakeholders about reducing their tariffs. However, we will try to identify the specific
environmental products with ex-out description under 8 digit HS code.
Part III. Trade Policies and Practices by Measure: Measures Directly Affecting Imports
Tariffs, Bound Tariffs: paragraph 3.28, page 46:
The non-comparability of Thailand's HS2002 and HS2012 nomenclatures is noted here with respect
to Thailand's bound tariffs.
Can Thailand confirm whether applied rates have been raised to the bound rate or above the
bound rate on any tariff lines where there has been a change (i.e., transposition) from HS2002 to
HS2012?
(Canada) Transposition tariff lines from HS2002 toHS2012 have no effects on bound rate.
3.2.2.6 Tariff-rate quotas
Para 3.30 Page 46
Additional information concerning the difference of criteria used for the purposes of quota
allocation is requested, since the Secretariat's report notes that in some cases only certain groups
of producers have access to quotas.