WORLD TRADE
ORGANIZATIONG/STR/N/7/THA
18 May 2001
(01-2549)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
New and Full Notification Pursuant to Article XVII:4(a)
of the GATT 1994 and Paragraph 1 of the Understanding on
the Interpretation of Article XVII
THAILAND
The following communication, dated 16 May 2001, has been received from the Permanent
Mission of Thailand.
_______________
This notification concerns products which are the subject  of state trad ing within the meaning
of Article XVII:4 (a) of the GATT 1994 and of paragraph 1 of the Understanding on the Interpretation
of Article XVII.  It covers all changes in this area since Thailand’s last updating notification.
Enumeration of state trading enterprises
The notification covers the following enterprises:(1) Public Warehouse Organization (PWO)
(2) Liquor Distillery Organization (LDO)
(3) Thailand Tobacco Monopoly (TTM)
1. Public Warehouse Organization (PWO)
PWO is empowered by the Ministry of Commerce to be the sole importer of garlic under HTS
heading 0703.20.007, 0712.90.0115 and 0712.90.0128.
Reason and purpose
PWO is a state enterprise attached to the Ministry of Commerce of Thailand. An object set for
the Organization, according to the Royal Decree Establishing the Public Warehouse B.L. 1955, was“to engage in all activities concerning agricultural goods and consumer products, as well as in service
business connected with agricultural goods and consumer products.”
The purpose of the PWO is to provide stability and predictability of prices and quantities of
agricultural goods and consumer products.  PWO will ensure that domestic production will not create
an over- supply situation for the product.G/STR/N/7/THA
Page 2
Description of the Functioning of the State Trading Enterprise
The Ministry of Commerce, in cooperation with the Ministry of Agriculture and Agricultural
Cooperatives, have issued “the Ministry of Commerce Regulation on Import Licensing for Garlic
under the WTO Agreement” assigning PWO to admi nister the importation of in-quota quantity of
garlic.  The objective of the Regulation is to ensure that domestic prices and quantities of garlic are
appropriate for both producers and consumers.  PWO does not conduct direct import operations, but
allocate quantities each importer could import under in-quota tariff.  Importers will have to perform
import operations themselves and then submit an import request to PWO.  In practice, imports of
garlic under such regulation will be allowed only when domestic production is not enough for local
consumption that will cause high prices to the public.
Reason why no foreign trade has taken place
Each year PWO have allocated such quota to private sectors who intend to import, however,
so far still no imports have taken place.G/STR/N/7/THA
Page 3TABLE I
STATE TRADING:  PUBLIC WAREHOUSE  (PWO)
STATISTICAL INFORMATION, IMPORTS
Description of Product Year Total quantity
imported
(kilogram)Quantity imported by
state trading
enterprise
(kilogram)Average import
price
(Baht/kilogram)Average
representative
domestic sales priceMark-up National production
(ton)
1998 440 n.a. 18.47 N/A N/A 119,000
1999 93 n.a. 257.68 N/A N/A 118,000Garlic, fresh or chilled
(070320)
2000 23,078 n.a. 21.68 N/A N/A 126,000
1998 0 n.a. - N/A N/A N/A
1999 3,000 n.a. 38.87 N/A N/A N/ADried garlic, in powder
(0712900115)
2000 18,946 n.a. 39.36 N/A N/A N/A
1998 0 n.a. - N/A N/A N/A
1999 0 n.a. - N/A N/A N/ADried garlic, not in
powder
(0712900128) 2000 0 n.a. - N/A N/A N/A
Note: n.a. = not applicable
N/A = not availableG/STR/N/7/THA
Page 4
TABLE II
STATE TRADING:  PUBLIC WAREHOUSE  (PWO)
STATISTICAL INFORMATION, EXPORTS
Description of Product Year Total quantity
exported
(kilogram)Quantity exported
by state trading
enterpriseAverage
procurement
priceAverage
representative
domestic sales
priceAverage export
price
(Baht/kilogram)National
production
(ton)
1998 18,004 n.a. n.a. N/A 21.85 119,000
1999 40,674 n.a. n.a. N/A 37.03 118,000Garlic, fresh or chilled
(070320)
2000 268,547 n.a. n.a. N/A 55.25 126,000
1998 25,142 n.a. n.a. N/A 140.92 N/A
1999  9,118 n.a. n.a. N/A 105.85 N/ADried garlic, in powder
(0712900115)
2000 46,287 n.a. n.a. N/A 48.87 N/A
1998 5,090 n.a. n.a. N/A 53.65 N/A
1999 2,559 n.a. n.a. N/A 98.35 N/ADried garlic, not in powder
(0712900128)
2000 2,161 n.a. n.a. N/A 72.80 N/A
Note: n.a. = not applicable
N/A = not availableG/STR/N/7/THA
Page 5TABLE III
STATE TRADING:  PUBLIC WAREHOUSE  (PWO)
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of
productYear Domestic purchases by
State trading enterpriseNational production
(ton)Domestic sales by
State trading enterpriseNational consumption
1998 n.a. 119,000 n.a. N/A
1999 n.a. 118,000 n.a. N/AGarlic, fresh or
chilled
(070320) 2000 n.a. 126,000 n.a. N/A
1998 n.a. N/A n.a. N/A
1999 n.a. N/A n.a. N/ADried garlic, in
powder
(0712900115) 2000 n.a. N/A n.a. N/A
1998 n.a. N/A n.a. N/A
1999 n.a. N/A n.a. N/ADried garlic, not in
powder(0712900128) 2000 n.a. N/A n.a. N/A
Note: n.a. = not applicable
N/A = not availableG/STR/N/7/THA
Page 6
2. Liquor Distillery Organization (LDO)
LDO is empowered by the Excise Department, Mini stry of Finance to be the sole producer of
ethyl alcohol 95 per cent.
Reason and purpose
The Liquor Act, B.E. 2493, authorised LDO to be  the sole producer and distributor of ethyl
alcohol 95 per cent.  The purpose of such an arrangement is to control the supply of ethyl alcohol in
order to keep down the number of alcoholic beverage producers.  It also aims at preventing illegal
trade.
Description of the functioning of the state trading enterprise
LDO only deals with the production of ethyl alcohol 95 per cent to be distributed within the
country.  Presently there is no import or export of ethyl alcohol 95 per cent by LDO.
Reason why no foreign trade has taken place
Production quantity of ethyl alcohol 95 per cent is not enough to sell for foreign trade.  Under
the Liquor Act, B.E. 2493, no import of ethyl alcohol 95 per cent is allowed in order to prevent illegalproduction of low quality alcoholic beverages to protect human health.G/STR/N/7/THA
Page 7TABLE I
STATE TRADING:  LIQUOR DISTILLERY ORGANIZATION (LDO)
STATISTICAL INFORMATION, IMPORTS
Description of Product Year Total quantity
importedQuantity imported by
state trading
enterpriseAverage import
priceAverage
representative
domestic sales priceMark-up National
production
Ethyl alcohol 95 per cent 1998-2000 n.a. n.a. n.a. N/A n.a. N/A
Note: n.a. = not applicable
N/A = not availableG/STR/N/7/THA
Page 8 TABLE II
STATE TRADING:  PUBLIC WAREHOUSE  (PWO)
STATISTICAL INFORMATION, EXPORTS
Description of
ProductYear Total quantity
exported
(kilogram)Quantity exported by
state trading
enterpriseAverage
procurement priceAverage
representative
domestic sales
priceAverage export
priceNational
production
Ethyl alcohol 95
per cent1998-2000 n.a. n.a. n.a. N/A n.a. N/A
Note: n.a. = not applicable
N/A = not availableG/STR/N/7/THA
Page 9TABLE III
STATE TRADING:  LIQUOR DISTILLERY ORGANIZATION (LDO)
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product Year Domestic purchases by
State trading enterprise
(litres)National production Domestic sales by
State trading enterprise
(litres)National
consumption
Ethyl alcohol 95 per cent 1997 N/A N/A 4,771,690 N/A
1998 N/A N/A 4,814,695 N/A
1999 N/A N/A 4,948,977 N/A
2000 3,000,000 N/A N/A N/A
Note: n.a. = not applicable
N/A = not availableG/STR/N/7/THA
Page 10
3. Thailand Tobacco Monopoly (TTM)
TTM is empowered by the Ministry of Finance.  The organization is the sole producer of
cigarettes in Thailand.
Reason and purpose
The Tobacco Act, B.E. 2509, authorised TTM to be the sole producer of cigarettes in order to
reduce negative consequences of cigarette consumption by controlling the domestic supply of
products.
Description and functioning
To prevent cigarette quantities from exceeding certain limits that are specified by the Excise
Department, under the Ministry of Finance, TTM is authorised to be the sole importer of tobacco
which is used for producing cigarettes in Thailand.  There is no restriction for private companies to
import or export cigarettes.G/STR/N/7/THA
Page 11TABLE I
STATE TRADING:  THAILAND TOBACCO MONOPOLY (TTM)
STATISTICAL INFORMATION, IMPORTS
Description of
product (s)   Fiscal *
YearTotal quantity
imported
(kilograms)Quantity imported by state
trading enterprise
(kilograms)Average import price Average
representative
domestic sales
priceMark-up National
production
Fiscal Year US$
1998 3,530,536.15 3,530,536.15 1998 crop:
Flue-cured289.10 N/A N/A N/A
Burley 320.94 N/A N/A N/A
1999 3,000,018.14 3,000,018.14 1999 crop:
Flue-cured287.64 N/A N/A N/A
Burley 322.17 N/A N/A N/A
2000 3,112,900.16 3,112,900.16 2000 crop:
Flue-curedN/A N/A N/A N/AAmerican Tobacco
(Flue-cured &
Burley)
Burley N/A N/A N/A N/A
* Note: Fiscal year is a period start from October to September of the following year.
Note: n.a. = not applicable
N/A = not availableG/STR/N/7/THA
Page 12
TABLE II
STATE TRADING:  THAILAND TOBACCO MONOPOLY (TTM)
STATISTICAL INFORMATION, EXPORTS
Description of
productsFiscal
YearTotal quantity exported
(million pieces)Quantity exported by
State trading enterprise
(million pieces)Average procurement
priceAverage
representative
domestic sales priceAverage export
price (per pack)
(US$)National
production
1998 151.65 151.65 N/A N/A 0.21 N/A
1999 147.94 147.94 N/A N/A N/A N/A
2000 68.30 68.30 N/A N/A N/A N/ACigarettes
(HS: 2402.10)
2001
(Oct-Nov)3.46 3.46 N/A N/A N/A N/A
Note: n.a. = not applicable
N/A = not availableG/STR/N/7/THA
Page 13TABLE III
STATE TRADING:  THAILAND TOBACCO MONOPOLY (TTM)
STATISTICAL INFORMATION, DOMESTIC ACTIVITIES
Description of product Fiscal
YearDomestic purchases by
State trading enterpriseNational production Domestic sales by
State trading enterprise
(baht)National consumption
1998 n.a. N/A 35,715.20 N/A
1999 n.a. N/A 31,347.40 N/ACigarettes
(HS. 2402.10)
2000 n.a. N/A 61,688.00 N/A
Note: n.a. = not applicable
N/A = not available
__________