G/STR/N/15/THA  
 
14 December 2017  
(17-6961) Page: 1/16 
Working Party on State Trading Enterprises  Original: English  
 
STATE TRADING  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVII:4(A) OF T HE 
GATT 1994 AND PARAGR APH 1 OF THE UNDERST ANDING ON  
THE INTERPRETATION O F ARTICLE XVII  
THAILAND  
The following communication, dated 7 December 2017, is being circulated at the reques t of the 
Delegation of Thailand.  
 
_______________  
 
 
 
TABLE OF CONTENTS  
1   PUBLIC WAREHOUSE ORG ANIZATION (PWO)  ................................ .............................  2 
2   LIQUOR DISTILLERY OR GANIZATION EXCISE DEPAR TMENT  ................................ ....... 8 
3   THAILAND TOBACCO MON OPOLY (TTM)  ................................ ................................ .... 13 
 G/STR/N/15/THA  
 
- 2 - 
 
  1   PUBLIC WAREHOUSE ORG ANIZATION (PWO)  
Reason and purpose  
 
Public Warehouse Organization (PWO ) is a state -enterprise attached to the Ministry of Commerce.  
Its objective is to "engage in all activities regarding agricultural goods and consumer products " 
either the implementation in response to the government policies and the business operation, as 
well as in service business connected with agricultural goods and consumer products according to 
the Royal Decree Establishing the Public Warehouse B.E.2498.  
Description of the functioning of the state trading enterprise  
PWO is responsible for the implemen tation regarding agricultural goods and consumer products in 
response to the government policies, mainly at the trade operation connected with agricultural 
goods and consumer products including importation and exportation, as well as warehouse 
business. PW O also allocates quantities of imports under in -quota tariff of certain agricultural 
products, such as crude palm olein.  
 
 
 
  
  G/STR/N/15/THA  
 
- 3 - TABLE 1  
STATE TRADING: PUBLI C WAREHOUSE ORGANIZA TION 
STATISTICAL INFORMATION, IMPORTS  
Description of Product  Year Total Quantity 
Imported  
(tons)  Quantity 
Imported by State 
Trading Enterprise  Average Import 
Price  Average 
Representative 
Domestic Sales 
Price  Mark -Up National 
Production 
(tons)  
Rice 2011 10,695  - - N/A - 36,003,679  
2012 26,949  - - N/A - 38,102,720  
2013 25,024  - - N/A - 38,000,189  
  
  G/STR/N/15/THA  
 
- 4 - TABLE 2  
STATE TRADING: PUBLI C WAREHOUSE ORGANIZA TION 
STATISTICAL INFORMATION, EXPORTS  
Description of 
Product  Year Total Quantity 
Exported  
(tons)  Quantity 
Exported by 
State Trading 
Enterprise 
(tons)  Average 
Procurement 
(Baht/kilogram)  Average 
Representative 
Domestic Sales 
(Baht/kilogram)  Average 
Exported Price 
(Baht/kilogram)  National 
Production 
(tons)  
Rice 2011 10,710,000 55.14 N/A N/A 24.85  36,003,679  
2012 6,730,000  168 .00  
N/A N/A 34.83  38,102,720  
2013 6,610,000  105 .30  N/A N/A 35.70 38,000,189  
  
  G/STR/N/15/THA  
 
- 5 - TABLE 3  
STATE TRADING: PUBLI C WAREHOUSE ORGANIZA TION 
STATISTICAL INFORMATION, DOMESTIC ACTIVITES  
 
Description of Product  Year Domestic Purchases by State 
Trading Enterprise  
(tons)  National 
Production  
(tons)  Domestic Sales by State Trading  
Enterprise (tons)  National 
Consumption  
(tons)  
Rice 2011 821 .98 36,003,379  821 .98 16,360,000  
2012 385 .95 38,102,720  385 .95 16,870,000  
2013 122.91  38,000,189  122.91  16,670,000  
  
  G/STR/N/15/THA  
 
- 6 - TABLE 4  
STATE TRADING: PUBLI C WAREHOUSE ORGANIZA TION 
STATISTICAL INFORMAT ION, IMPORTS  
Description of Product  Year Total Quantity 
Imported 
(tons)  Quantity Imported 
by State Trading 
Enterprise  
(tons)  Average Import 
Price 
(Baht/kilogram)  Average 
Representative 
Domestic Sales 
Price  Mark -Up National 
Production  
Crude Palm Olein  2011 30,000.00  30,000.00  39.57  N/A - N/A 
2012 40,000.00  40,000.00  31.16  N/A - N/A 
2013 - - - N/A - N/A 
  
  G/STR/N/15/THA  
 
- 7 - TABLE 5  
STATE TRADING: PUBLI C WAREHOUSE ORGANIZA TION 
STATISTICAL INFORMATION, IMPORTS  
Description of Product  Year Total Quantity 
Imported 
(tons)  Quantity 
Imported by State 
Trading Enterprise  
(tons)  Average Import 
Price 
(Bath/kilogram)  Average 
Representative 
Domestic Sales 
Price  Mark -Up National 
Production 
(ton)  
YELLOW MAIZE  2011 210,000  - - N/A - 4,646,000  
2012 100,000  - - N/A - 4,782,000  
2013 140,000  6,000.00  3.32 N/A - 4,948,000  
 
 G/STR/N/15/THA  
 
- 8 - 
 
  2  LIQUOR DISTILLERY OR GANIZATION EXCISE DE PARTMENT  
Liquor Distillery Organization Excise Department is empowered by the order of Ministry of Finance 
to be the sole producer of ethyl alcohol 95%.  
 
Reason and purpose  
 
The Liquor Act, B.E. 2493, authorized Liquor Distillery Organization Excise Department to be the 
sole producer and distributor of ethyl alcohol 95%.  
 
Description of the functioning of state trading enterprise  
 
Liquor Distillery Organization Excise Departme nt only deals with the production of ethyl alcohol 
95% to be distributed within the country.  
 
Reason why no foreign trade has taken place  
 
Production quantity of ethyl alcohol 95% is not enough to sell for foreign trade.  G/STR/N/15/THA  
 
- 9 - 
 
  The Answer of The Questionnaire on State Trading  
 
I. Liquor Distillery Organization Excise Department has been granted exclusive rights but no 
powers or influences through purchases or sales of imports or exports. Ethyl alcohol 95%  
II. Producing and distributing ethyl alcohol 95% for the  income of the state  
III. The Liquor Act , B.E. 2493 authorized Liquor Distillery Organization Excise Department to be 
the producer and distributor of ethyl alcohol 95% and not permit other factories to produce 
ethyl alcohol 95% for distribution.  
Liquor Dis tillery Organization Excise Department only deals with the production of ethyl alcohol 
95% to be distributed within the country. Presently there are no imports or exports of ethyl alcohol 
95% by Liquor Distillery Organization Excise Department.  
 
  
  G/STR/N/15/THA  
 
- 10 - TABLE I  
STATE TRADING: LIQUO R DISTILLERY ORGANIZ ATION EXCISE DEPARTM ENT 
STATISTICAL INFORMATION, IMPORTS  
Description of 
product  Year Total quantity  
imported  Quantity 
imported  
by state trading  
enterprise (Litres ) Average import  
price (Baht ) Average  
representative  
domestic sales 
price  Mark -up National  
Production  
(Liter)  
Ethyl alcohol  
95% 2013 - - - N/A - 12,791,455  
  
  G/STR/N/15/THA  
 
- 11 - TABLE II  
STATE TRADING: LIQUO R DISTILLERY ORGANIZ ATION EXCISE DEPARTM ENT 
STATISTICAL INFORMATION, EXPORTS  
Description of 
Product  Year Total 
Quantity  
Exported  Quantity Exported  
by State Trading  
Enterprise  Average  
Procurement  
Price  Average  
Representative  
Domestic Sales 
Price  Average 
Export  
Price  National  
Production  
(Liter)  
Ethyl alcohol  
95% 2013 - - - N/A - 12,791,455  
 
 
  
  G/STR/N/15/THA  
 
- 12 -  
TABLE III  
STATE TRADING: LIQUO R DISTILLERY ORGANIZ ATION EXCISE DEPARTM ENT 
STATISTICAL INFORMATION, NATIONAL PRODUCTION  
Description of Product  Year National Production (Liter)  
Ethyl alcohol 95%  2013 12,791,455  
 
 G/STR/N/15/THA  
 
- 13 - 
 
  3  THAILAND TOBACCO MON OPOLY (TTM)  
TTM is a State Enterprise under the supe rvision of the Ministry of Finance. A profit seeking 
organization whose direction is derived from the State Enterprise's Master Plan, permitting it to 
consider its full potential in charting a stable course to effectively compete in today's world of free 
trade. 
 
Reason and Purpose  
 
The TTM is the leader of the domestic cigarette market, and contributes significant revenue to the 
Ministry of Finance. Its standards of management mark it as a world class organization. The 
hallmarks of its products are quality and now production cost, enabling the TTM to maintain its 
lead within the local cigarette and tobacco market, as well as expanding its frontiers in to 
international markets.  
 
The Tobacco Act, B.E.2509, authorized TTM to be the sole producer of cigarette to  reduce negative 
consequences of cigarette consumption by controlling the products' domestic supply.  
 
Description of the functioning of the state trading enterprise  
 
The TTM has adopted the ISO standard system to inspect the quality of its cigarettes, chem ical 
composition and packaging Furthermore, the TTM's laboratory facilities have earned the 
ISO/IEC  17025 from International Organization for Standardization for the field of laboratories 
involved in the inspection of tar and nicotine levels in cigarettes.  
 
Cigarette production  
 
The TTM presently has 3 modern and efficient cigarette production factories, grouped within its 
head office compound in Klong Toey District, Bangkok and the upcoming new production plant 
located at Rojana Industrial Park, Ayutthaya province. In fiscal year 2013, normal production 
output reaches an annual figure of 32,874.73 million cigarettes, 18 cigarette brands.  
 
Product range  
 
 The TTM offers a variety of cigarette types and blends, categorized as follows.  
 - American blended cig arettes 15 brands  
 - Virginia blended cigarettes 1 brand  
 
Distribution  
 
The TTM has added tobacco retail outlets as another channel to its existing tobacco wholesale 
outlets. Sales officers and supervisors serve to distribute the products to retail shops i n place of 
passing through subagents. Sales are also targeted through convenience stores and modern trade 
outlets.  
 
The TTM presently has a network of 272 tobacco wholesale outlets, 5,514 tobacco subagents and 
more than 500,000 tobacco retail outlets.  
 
Sales percentage breakdown by cigarette flavors (in fiscal year 2013)  
 
 - Virginia 0.178%  
 - American   99.822%  G/STR/N/15/THA  
 
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  Questionnaire on State Trading  
 
III. Description of the functioning of the state -trading enterprises  
- Whether the enterprise deals with exports o r with imports, or both.  
 
TTM has been dealt with both imports and exports. Ingredients such as tobacco leaves, flavourings 
and filters are imported for production of Thai cigarettes.  TTM also manufactures and distributes 
Thai cigarettes to the consumers w orldwide, lying in 12 global flagship brands from the cigarette 
portfolio.  
 
- Whether private traders are allowed to import and export and, if so, on what conditions. 
Whether there is free competition between private traders and the State -trading enterpri se.  
 
Potential private exporters are welcome to be TTM's authorised distributors to freely trade and 
export Thai cigarettes to the world market.  
 
- The criteria used for determining the quantities to be exported and imported.  
 
Quantities of exported ciga rettes are determined by TTM's customers' purchase requirements 
which based on their sales forecasts and the demand of the market.  
 
- How export prices are determined. How the mark -up on imported products is determined. 
How export prices and the re -sale p rices of imports compare with domestic prices.  
 
Export prices are set by taking price competitiveness into account, including local taxes, excise 
duties and re -sale prices in the domestic markets.  
 
- Whether long -term contracts are negotiated by the State -trading enterprise. Whether State -
trading methods are used to  fulfill contractual obligations entered into the Government.  
 
Short -term sales contracts/agreements, generally lasts one or two years, are used to demonstrate 
mutual agreements to trade cigare ttes as well as authorised distributer/exporter obligations. An 
extension of contract will be reviewed and granted at the end of validity period.  
  
  G/STR/N/15/THA  
 
- 15 -  
TABLE II  
STATE TRADING: THAIL AND TOBACCO MONOPOLY  (TTM)  
STATISTICAL INFORMATION, EXPORT  
Description of 
Prod uct(s)  
(including HS 
number(s))  Fiscal 
Year Total Quantity 
Exported  
(million pieces)  Quantity 
Exported By 
State Trading 
Enterprise  
(million pieces)  Average 
Procurement 
Price  
 
(USD)  Average 
Representative 
Domestic 
Sales Price  
 
(USD)/20 
pieces  Average Expor t 
Price  
(USD)/20 
pieces  National Production  
(million pieces)  
Cigarettes  
2402.20.10  2013 35.64  35.64  - 1.65 - 1.80 0.51 - 0.60 32,602.44  
 
  
  G/STR/N/15/THA  
 
- 16 - TABLE III  
STATE TRADING: THAIL AND TOBACCO MONOPOLY  (TTM)  
STATISTICAL DOMESTIC ACTIVITIES  
Description of 
Product(s)  
(Including HS 
number(s))  Domestic purchases by state trading 
enterprise (Tobacco)  
(million Baht)  National 
production  
(million pieces)  Domestic sales by state trading 
enterprise  
(Fiscal Year: million pieces)  National 
consumption  
Cigarette  
2402.10  2012 720 .00 33,072.87  2012 33,072.87  N/A 
2013 1582 .00 32,602.44  2013 32,602.44  N/A 
 
 
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