Thai Exporters Face 4x Duty Fines in New Origin Fraud Crackdown

A New Era of Vigilance in Thai Trade

Thailand’s กรมศุลกากร (Customs Department) is poised to escalate penalties on businesses that misstate the origin of exported goods, a measure designed to shore up confidence among international partners and safeguard Thailand’s trade reputation.

At a glance:

• 4× unpaid duty imposed even on duty-free shipments

• 65 high-risk product groups, 224 tariff codes under enhanced scrutiny

• 49 export lines to the US subject to mandatory on-site checks

• Joint working group formed by Customs, Department of Foreign Trade, Royal Thai Police

• Over 600 falsified certificates uncovered in 2022 alone

Why This Matters for Thai Exporters

For an economy that relies on free-trade agreements and preferential tariffs with markets such as the US, EU and ASEAN neighbors, maintaining the integrity of origin declarations is critical. Exporters face the prospect of losing tariff benefits if trading partners suspect trade circumvention, while Thailand’s brand for quality could suffer. The planned penalty overhaul is intended to deter origin misrepresentation and protect legitimate businesses from unfair competition.

Identified Loopholes and Risk Patterns

Customs investigators have flagged recurring fraud vectors and risk patterns:

• Free-zone routes where products enter a bonded area and exit unchanged to claim Thai origin.

• Direct “Made in Thailand” labelling applied to imported items.

• Transactions with no record of value-addition, raising questions about actual processing.

This intelligence is shared with the กรมการค้าต่างประเทศ to intensify vetting when issuing Certificates of Origin and to trigger deeper audits of suspect shipments.

The New Penalty Framework

Under the proposed rules, administrative settlements will see fines recalibrated by the settlement committee, which includes officers from the Royal Thai Police and the Ministry of Finance. Even if exports attract zero duty, offenders could face penalties up to four times the equivalent import tax. The revised criteria are set to be formalized via an announcement from the Customs Department pending Cabinet approval.

Government Coordination and Enforcement Tools

A joint working group has been established to integrate real-time data-sharing across Customs, Commerce and Transport agencies. Officials will roll out a pilot e-origin platform featuring QR code verification and expand on-site inspections in high-risk sectors like electronics, auto parts and agro-exports. This collaborative network aims to close gaps and streamline cross-border compliance.

How Businesses Can Prepare

To avoid penalties, Thai exporters should:

• Strengthen traceability with clear bills of materials and production logs.

• Conduct regular free-zone audits to document genuine processing.

• Reconcile all Form C/O requests with internal ERP records.

• Train logistics teams on the new electronic origin submission portal.

By taking proactive steps now, companies can ensure they remain on the right side of the upcoming regulations and preserve access to global markets.