In the midst of the COVID-19 situation in Thailand, a new Ministerial Regulation (Ministerial Regulation (No. 2) B.E. 2564 (2021)) sets a temporary measure during the period of 1 June to 30 September 2021 to reduce the duty surcharge rate to 0.25% per month for all importers and exporters who voluntarily disclose their errors by themselves and pay additional duty to Thai Customs.

Under Customs Act, B.E. 2560 (2017), importers or exporters who fail to pay the full amount of the import duty are liable to also pay a duty surcharge at the rate of 1% of duty shortfall per month; however, the amount of duty surcharge shall not exceed the amount of duty shortfalls.

Generally speaking, the Ministerial Regulation issued in 2017 determines the criteria of the duty surcharge reduction. It grants the duty surcharge reduction rate from 0.25 to 0.75% depending on the period between the payment date and date that the goods are released from the customs custody, which is summarized in the diagram below.

Considering the criteria of the new Ministerial Regulation, this provisional measure gives more benefits to importers and exporters, provided that this duty surcharge reduction scheme does not limit the period between the payment date and the date that the goods are released from the customs custody, like the 2017 regulation. Thus, importers or exporters who imported or exported goods for more than 3 years are also entitled to enjoy this duty surcharge reduction.

Unless the Minister of the Ministry of Finance extends the eligible period, the criteria under the new Ministerial Regulation is merely a temporary measure. After 30 September 2021, importers and exporters will be subject to the duty surcharge reduction rate under the established Ministerial Regulation, B.E. 2560 (2017).

Please contact us for further information or assistance for voluntary disclosure during this period.

Contacts: Pornapa Luengwattanakit, Panya Sittisakonsin, Suriyong Tungsuwan, Keerati Saneewong Na Ayudthaya.