WORLD TRADE  
ORGANIZATION  G/VAL/W/190 
27 April 2010 
 
 (10-2217) 
Committee on Customs Valuation Original:   English 
  
 
NOTIFICATIONS UNDER ARTICLE 22 OF THE CUSTOMS  
VALUATION AGREEMENT 
 
Thailand’s Answers to the United States' Questions  under Article 22 Notification of the Customs 
Valuation Agreement (G/VAL/W/181)  
 
  The following communication, dated 26 April 2010, is circulated at the request of the delegation of Thailand.  
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1. Thailand’s objective in the amendment of its Customs law.  For example, why does the 
amendment omit any reference to customs valuation methods?  
 
 The amendments are intended to collect various  customs laws and regulations into one law 
and also to update customs laws as appropriate, in  accordance with customs- related international 
agreements.  In addition, the amendments are also re lated to the issuance of new regulations to reflect 
recent changes  in the Customs Department’s policies and practices. 
  Regarding customs valuation methods, the dr aft amendment provides in section 6(12) that: 
 
""Customs value" or "value" of goods me ans, and shall include, values specified 
under Ministerial Regulations related to  imported goods, exported goods, or other 
goods under this Act." 
  Details regarding customs valuation methods will be provided under a Ministerial regulation, 
similar to Ministerial Regulation 132 (B.E. 2543), i ssued in accordance with the Customs Act B.E. 
2469.  The customs valuation methods to be provide d therein will be in accordance with Article VII 
of the General Agreement on Tariffs and Trade (GATT 1994) and the Agreement on Implementation 
of Article VII of the GATT 1994, similar to  Ministerial Regulations No. 132 (B.E. 132). 
  The reason behind these changes is to have Th ailand's main customs laws, the Customs Act 
contain general principles, with more detailed rules to be provided in Ministerial Regulations such as 
the Ministerial Regulation related to a customs valuation.   2. Thailand’s current customs penalty regime a nd the operations of a penalty regime in the 
customs valuation area  
 
 There are many different penalty provisions  in Thailand's customs laws, depending on the 
type of offence.  For example, Section 27 of  the Customs Act B.E. 2469, provides for severe 
punishment for smuggling and customs evasion, stating that: 
 G/VAL/W/190 
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  "…for each offence, there shall be a fine of four times the amount of price of goods 
including duty, or imprisonment for a term  not exceeding ten years, or both." 
 When there is an allegation of a customs offe nce, if the person alleged to have committed the 
offence does not contest the allegation, such person can  file a request with the Customs Department to 
waive the prosecution under section 102 or section 102 bis of the Customs Act B.E. 2469.  The 
Customs Department has provided all relevant rules governing such cases in the Customs Department 
General Order No. 18/2550 dated 30 A ugust B.E. 2550.  In contrast, if the person does not request to 
waive the prosecution, the Customs Department shall apply all relevant rules.  If the case is brought to 
the Courts, the Court decides the case.  
 In a false declaration case, if an importer did not intentionally avoid applicable customs 
duties, the case proceeds under section 99 of the Customs Act B.E. 2469.  If an importer intended to avoid applicable customs duties, the case proceed s under section 27 and in conjunction with section 
99 of the Customs Act B.E. 2469.  
 The penalties provided for under Thai law are as follows: 
  (1) In cases concerning false declarations without an intention to avoid duty, section 99 of the Customs Act B.E. 2469 provides that such person shall be liable to imprisonment for a term not exceeding six months or a fine not exceeding 500,000 baht or both.  
 (2) In cases concerning false declarations with an intention to avoid duty, section 27 in 
conjunction with section 99 of the Customs Act B.E. 2469 provides that “…for each offence, there shall be a fine of four times the amount of price of goods including duty or imprisonment for a term not exceeding ten years, or both.”  
 In false declaration cases, if an importer makes an agreement with the Customs Department to 
waive a prosecution, related rules and regulations re garding such waiver are provided in the Customs 
Department General Order No. 18/2550 dated 30 A ugust B.E. 2550 and Regulated Conduct Code No. 
1 06 03 01 (7).   In civil cases, an importer who made a false declaration is obligated to pay a fine and 
surcharge under section 112 of the Customs Act B.E. 2469.  There are also similar provisions related 
to fines and interest under The Revenue Code (value -added tax) and the Excise Act.  A provincial tax 
will be apportioned from the aforementioned VAT and Excise tax.  If an importer does not reach an agreement to resolve the case with  the Customs Department, the Customs Department shall proceed 
with all necessary prosecution.  
 
3. The appeal process for customs valuation decision, whether penalties are increased in 
the case of an importer filing an appeal outside the Customs Department  
 
(1) Regarding appeals procedures,  Section 112  six and Section 112 duodeviginti  of the 
Customs Act B.E. 2469 provide for appeal procedures as follows: 
 
"Section 112 six An importer or exporter has a right to appeal the assessment of duty by a competent official to the Board of Appeals in accord ance with the rules 
prescribed by the Director-General within th irty days as from the date of the receipt 
of such assessment. In cases where the im portation or exportation of goods is in a 
province other than Bangkok Metropolis, the appeal can be made through the 
Customs House or the Regional Customs Bur eau, and shall be in accordance with the 
rules prescribed by the Director-General."  G/VAL/W/190 
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  "Section  112 duodeviginti  The appellant has the right to appeal the decision of the 
Board of Appeals by filing a case at a Court within thirty days as from the date of the 
receipt of the appeals decision except where the Board of Appeals dismissed the appeal pursuant to section 112 duodecim ." 
The above-mentioned appeal is the appeal pr ocess for a duty assessment by a customs official 
and a decision of the Board of Appeals, including an appeal of a customs valuation determination.  
The draft amendment also includes similar provisions. 
 (2) Regarding an appeal to a body external to  the Customs Department, in order to appeal 
the Board of Appeals’ decision to an external body,  an importer must file a complaint with the court 
under section 112 duodeviginti  of the Customs Act B.E. 2469.  Such a complaint is considered to be a 
civil action, not a criminal action.  Therefore, an y applicable penalties cannot be increased in such a 
proceeding. 
 Nevertheless, where an importer makes a false declaration, with or without intention to avoid 
any applicable duty, or an importer files an appeal  against a customs valuation determination to the 
Board of Appeals or an organization external to  the Customs Department, the Customs Department 
shall proceed with the case against such importer in  accordance with the prin ciples described in an 
answer to Question No. 2. 
 
4. Whether Thailand provides importers with righ t to an explanation in writing from the 
Customs Department to how the customs value  of their goods was determined and whether 
Thailand provides this concept in any provision.  
 
 Thailand provides importers with a right to an  explanation related to a customs valuation 
determination in writing from the Customs Depart ment.  This was provided for in Ministerial 
Regulation No. 145 (B.E. 2547), issued in accordance with the Customs Act B.E. 2469.  [Paragraph?] 
No. 3/1 of this Regulation provides that “when an importer files a petition in writing for an explanation to a determination of customs valuation, an official is obligated to provide the reason for 
rejecting the declared value and the customs valuation method in writing to such importer."   
5. What is the status of the Thai legislation to end the use of reference prices in 
determining  customs value under Section 11 bis of the Customs Act B.E. 2469. The US 
encourages Thailand to repeal such provision as soon as possible  
 
 Regarding Section 11 bis of the Customs Act B.E. 2469, the Customs Department has already 
abolished this in a draft amendment.  At present, the Secretariat of the Cabinet is in the process of 
obtaining the Cabinet’s approval of this draft am endment and proceeding with other necessary steps  
in the legislative amendment process.     
 
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