WORLD TRADE G/STR/N/2/THA
25September 1996
ORGANIZATION(96-3802)
Original: English Working Party onState Trading Enterprises
STATE TRADING
Updating Notification Pursuant toArticle XVII:4(a) oftheGATT 1994 and
Paragraph 1oftheUnderstanding ontheInterpretation ofArticle XVII
THAILAND
Thefollowing communication, dated 18September 1996, hasbeenreceived fromthePermanent
Mission ofThailand.
_______________
Thisnotification provides afullupdate ofG/STR/N/1/THA.
Enumeration ofstatetrading enterprises
Thenotification covers thefollowing enterprises:
1. Public Warehouse Organization (PWO)
2. Liquor Distillery Organization (LDO)
3. Thailand Tobacco Monopoly (TTM)
1. Public Warehouse Organization (PWO)
PWO isempowered bytheMinistry ofCommerce tobethesoleimporter ofcertain products
onlywhen theMinistry ofCommerce seestheneedforsuchanarrangement. Atthepresent date,
theproduct traded byPWO ispotatoes.
(a) Reason andpurpose
TheNotificationofMinistryofCommerceontheImportationofProductsintoThailand(No.49)
B.E. 2530, dated 27March 1987, authorized PWO tobethesoleimporter ofpotato seed. On
20March 1995andaspartoftheimplementation oftheUruguay Round commitments, theMinistry
ofCommerce assigned PWO toadminister theimportation ofin-quota quantity ofpotato seed. On
1December 1995, theMinistry ofCommerce alsoauthorized PWO toadminister theimportation of
in-quota quantity ofbothpotato seedandother under tariff itemnumber 07.01. Thepurpose ofsuch
anarrangement istwo-fold: toensure thatlocalproduction ofpotatoes willnotcreate anover-supply
situation fortheproduct andtoensure thesmooth importation process under thequota tariff system.
(b) Description andfunctioning
Local producers ofpotatoes willhavetonegotiate prices andquality withexporters andthen
submit animport request toPWO. Fortheimportation ofpotatoes under thein-quota quantity, PWOG/STR/N/2/THA
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willallocate quantities eachproducer could import withzerotariff according topastimporting
performance.
(c) Statistical information
Import ofpotatoes byPWO
Year Imported quantity
(1,000 tons)Value
(million baht)
1991 615 13
1992 738 19
1993 1,067 25
1994 1,177 26
1995 1,384 31
2. Liquor Distillery Organization (LDO)
LDO isempowered bytheExcise Department tobethesoleproducer ofethyl alcohol
95percent.
(a) Reason andpurpose
TheLiquor Act,B.E.2493, authorized LDO tobethesoleproducer anddistributor ofethyl
alcohol 95percent. Thepurpose ofsuchanarrangement istocontrol thesupply ofethyl alcohol
inorder tokeepdown thenumber ofalcoholic beverage producers. Italsoaimsatpreventing illegal
trade.
(b) Description andfunctioning
LDO onlydeals withtheproduction ofethyl alcohol 95percenttobedistributed within the
country. Presently there isnoimport orexport ofethyl alcohol 95percentbyLDO.
(c) Statistical information
Production ofethyl alcohol 95percentbyLDO
Year Production quantities
(litres)Salevalue
(million baht)
1991 8,247,501 217.18
1992 8,017,633 208.02
1993 8,783,539 230.89
1994 9,183,455 246.52
1995 9,614,834 258.79G/STR/N/2/THA
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(d) Foreign trade
Under theLiquor Act,B.E.2493, noimport ofethyl alcohol 95percentisallowed inorder
toprotect human health andtoprevent illegal trade ofalcoholic beverages.
3. Thailand Tobacco Monopoly (TTM)
TTM isempowered bytheMinistry ofFinance. Theorganization isthesoleproducer of
cigarettes inThailand.
(a) Reason andpurpose
TheTobacco Act,B.E.2509, authorized TTM tobethesoleproducer ofcigarettes inorder
toreducenegativeconsequencesofcigaretteconsumptionbycontrollingthedomesticsupplyofproducts.
(b) Description andfunctioning
Toprevent cigarette quantities fromexceeding certain limits thatarespecified bytheExcise
Department, under theMinistry ofFinance, TTM isauthorized tobethesoleimporter oftobacco which
isusedforproducing cigarettes inThailand. There isnorestriction forprivate companies toimport
orexport cigarettes.
(c) Statistical information
Export ofcigarettes byTTM
Year Production
quantitySale
Export Domestic
Quantity
(million class)Value
(million baht)Quantity
(million class)Value
(million baht)
1991 39,721.45 10.00 3.30 38,858.19 26,911.60
1992 39,593.12 76.04 25.48 39,668.40 27,613.12
1993 41,221.78 78.42 25.85 41,301.85 28,889.77
1994 44,544.10 152.60 47.53 45,142.62 35,117.21
1995 43,195.27 188.50 61.54 42,010.86 29,174.21G/STR/N/2/THA
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Import oftobacco bytheTTM
Year Quantity
(kilograms)Value
(baht)
1991 8,800,500 1,381,860,000
1992 7,896,008 1,265,218,530
1993 7,700,965 940,500,014
1994 8,726,762 1,438,881,599
1995 9,702,295 1,597,428,042
Domestic statistics: domestic price andquantity bought byTTM
Year Quantity
(kilograms)Price (average)
baht/kg.
1991 36,669,826 36.22
1992 46,306,067 38.50
1993 42,614,243 38.10
1994 31,509,366 38.76
1995 32,065,534 39.57