WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO 
WT/TPR/M/255/Add.1 
2 February 2012 
 (12-0652) 
Trade Policy Review Body 
28 and 30 November 2011 Original:   English/ 
 anglais/ 
 inglés 
   
TRADE POLICY REVIEW 
THAILAND 
Record of the Meeting 
Addendum 
Chairperson:  H.E. Mr. Mario Matus (Chile) 
 
 This document contains the advance writte n questions, and replies provided by Thailand.1 
__________________________________________________________________________________ 
 
Organe d'examen des politiques commerciales 
28 et 30 novembre 2011  
EXAMEN DES POLITIQUES COMMERCIALES 
THAÏLANDE 
Compte rendu de la réunion 
Addendum 
Président:  S.E. M. Mario Matus (Chili) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par la Thaïlande.1 
__________________________________________________________________________________  
Órgano de Examen de la s Políticas Comerciales 
28 y 30 de noviembre de 2011 
 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
TAILANDIA 
Acta de la reunión 
Addendum 
Presidente:  Excmo. Sr. Mario Matus (Chile) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por la Tailandia.1 
                                                      
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/255/Add.1 
 Page 3  
 
 
 
 
  REPLIES PROVIDED BY THAILAND 
 
WTR/TPR/S/255 – Secretariat Report 
SUMMARY 
 
Page vii, paragraphs 5-7:   The Secretariat’s report notes that th e decline in foreign direct investment 
is a serious macroeconomic concer n for Thailand, and that restric tions on foreign ownership in the 
services sector contribute to this decline.  The repor t further notes that while still a large portion of the 
Thai economy, services’ contribution to GDP has droppe d 2% over the review period.  In addition, 
while the report notes that liberalization in the sector is ongoing, restrictions on market access and 
equity participation remain, and any changes appear to be taken on a discretionary, case-by-case basis.  
In light of the importance of trade in services to  the Thai economy, and Th ailand’s ongoing services 
policy reform, what specific steps does Thailand inte nd to undertake to liberalize further this sector? 
 
Answer 
The Board of Investment (BOI) does not have any re striction on investment in services that are listed 
in the eligible activities; however there are also ot her relevant laws of other government agencies. 
Paragraph 21:  Australia notes the Secretariat's report highlights the openness of Thailand’s 
economy and the resilience this has created in the economy even in periods of global economic 
downturn.  However, it continues to mainta in some complex regulatory framework governing 
Thailand's services sector which retard the opport unities for increased competition which in turn 
would enhance productivity and innovation.   
 (Australia) Does Thailand have any specific plans to review the regulatory regime governing the key 
sectors of transport and distribution, teleco mmunications, professional services and financial 
services?  Answer 
Thailand is currently developing a national restru cturing plan for the domestic services industries in 
Thailand.  The plan aims to lay the foundation in terms of improving services quality and competitiveness in order to meet the challenges of li beralization, particularly in the ASEAN region.  
Thailand’s regulatory regime governing services sector s, which Thailand has committed to liberalize, 
will be subject to amendment.  Legislation governing key sectors, transport, distribution and 
telecommunications are under review. 
 
I. ECONOMIC ENVIRONMENT 
(1) I
NTRODUCTION  
 
Paragraph 3:  The Secretariat’s report explains that "/…/the authorities have implemented significant 
investment projects in infrastructure over the past three years, under the "Strong Thailand" 
programme (see below), and encouraged private-sector participation in infrastructure development through public-private partnerships./…/"  
 
(EU) Could Thailand elaborate on the practical experiences with the Public-Private-Partnership 
(PPP) Act and, if possible, the challenges faced by  foreign investors wishing to invest under this law 
(e.g., lack of clarity on scope/definitions/project va luation methodologies, absence of procedural time 
limits causing delays, lack of contract amendment pr ocedures, absence of clear arbitration provisions 
causing uncertainty in the event of dispute etc.)? Could Thailand provide information on the steps 
taken to reform the institutional framework and th e legislation regarding PPP schemes in order to 
encourage the financing of infrastructure projects? WT/TPR/M/255/Add.1 
Page 4 
 
 
 
 
  Answer  
Since the enactment of Thai Public Private Part nership law (PPP Law) which is known as the Act on 
Private Participation in State Undertaking B.E. 2 535, (PPSU ACT 1992) there have been problems in 
related to the application of the law from time to time as follows: 
 The 1992 Act lack of a clear definition of PPP  and also does not prescribe the methodology for 
project valuation nor procurement methods. It also does not provide for methodology to share 
risks nor burden with private sector when projects are not commercially viable. 
 The lack of PPP unit to promote the PPP and to  assist the government in forming the PPP policy, 
to evaluate the PPP project, to coordinate with the private sector in preparing the feasibility study. 
The projects then are left to the implementing agencies which propose the projects with very little 
support in terms of technical, administrative and legal. 
 The rules with respect to risk allocation are unc lear because the current law does not provide any 
basis for it. Moreover, the capacity of identifying , allocating and mitigating risks between public 
and private sectors are needs to be improved. There is also a need for a body that has the 
authorities to give regulatory control and able to  provide assurance on pricing of service and other 
incentives. 
 The government of Thailand has tried to establish a new legislation in order to cope with the aforesaid 
problems and make the new PPP law more practical for the public and private sectors, comparison with foreign experience. Currently, the new PPP Act has been approved by the Cabinet (3 May 2011) 
and continued on legislation enactment process. 
 
Practical experiences with the Pub lic-Private-Partnership (PPP) Act. 
In Thailand, since the period of the implementa tion of the sixth National Economic and Social 
Development Plan (1987 – 1991), the economic deve lopment of the country had progressed at the 
highest rate of 10.9 per cent per annum.  As a co nsequence, the public sector could not invest in 
infrastructure and expand public facilities adequately to respond for demand.  Therefore, in such a 
period the public sector had opened up opportunity for the private sectors to participate in the public undertakings, most of which were big infrastructure projects.  However, befo re the enactment of the 
current PPP Act (the Act on Private Participation in  State Undertaking BE2535 (1992) or in short 
"PPSU Act"), the laws dealing with granting concessi on or right for private sectors to participate in 
public projects relied upon discretion of sole person or agency and a final decision of a concerned 
Minister without a specific set of rules.  The legislation of the PPSU Act BE2535 then taken place in 1992.  A number of PPP projects have occurred unde r the current PPSU Act, such as mass rapid 
transit projects, express highways and elevated roads, and telecommunication system, etc. 
The challenges faced by foreign  investors wishing to invest under the current PPP Act. 
From the experiences of undertaking PPP projects in the past, there are a number of problems and 
obstacles needed to be addressed and corrected, namely: 
 Lack of clear scope of the Act and PPP, 
 Repeated referral and re-referral procedures for approvals from different authorities and 
cabinet risks causing unnecessary project delays, 
 Lack of PPP Policy and sector plan, 
 Lack of provision for unsolicited project, 
 Lack of central agency to deal with policy and administration, 
 Lack of concession standardization, risk  allocation and risk management plan,  WT/TPR/M/255/Add.1 
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   No provision for contract amendment. 
 
The steps taken to reform the institutional framework and the legislation regarding PPP schemes. 
The solutions for the problems as mentioned a bove principally are as follows respectively: 
 The draft new Act defines clear purposes and principles.  The examples of new purposes are 
development a strategic plan to identify PPP pr ojects, project agency to compare value and 
effectiveness between Gov. pr ocurement and PPP, and improvement of the procedures for 
PPP projects to be in line with current envir onment and on the basis of transparency, etc. 
 Set up a PPP committee to handle the approval process (chaired by Prime Minister), 
 Establish strategic plan to formulate PPP polic y which is in line with the Constitution and the 
NESDB plan, 
 Private sector can submit unsolicited project bids to SEPO, 
 Assign SEPO to act as central agency to take ca re of administrative work, meeting, study and 
assist the PPP committee in undertaking its responsibilities, 
 Centralized approval authority to PPP Committee, 
 Identify standard topics that shall include in the contract, Risk allocation and risk 
management plan shall be proposed at project  approval, project agency and private sector 
need to create risk management plan for th e project supervising and monitoring purposes, 
 Provide procedure for contract amendment and set  the procedure for project agency to prepare 
before contract termination. 
The Thai government has taken steps in respondi ng to problems and obstacles above, which can be 
summarized periodically as follows: 
 2007-2008 Ministry of Finance started drafting PPP Guidelines to provide detailed steps in 
PPP implementation (under the current PPP act), 
 October 2007, ADB studied "Thailand: Toward s new PPP legislation", which highlighted 
future legal reform in the field of PPP, 
 2009-2010, a set of draft new Act have been developed by many relating parties e.g. 
Comptroller General Department, Public De bt Management Office (PDMO), the Committee 
to amend the Act, 
 October 2010, State Enterprise Policy Office (SEPO ) identified a number of concerns over the 
effective implementation of PPPs, 
 End 2010- early 2011, consecutive public h earings and government agencies discussion 
sessions took place, 
 May 2011, new act was approved by the former Cabinet. 
 Now the Office of the Juridical Council is under the process of re-reading and checking.  
Upon completion, the draft Act will be submitte d for the Parliament for final approval. 
 WT/TPR/M/255/Add.1 
Page 6 
 
 
 
 
  (2) R ECENT ECONOMIC DEVELOPMENTS  
(3) M AIN MACROECONOMIC POLICY DEVELOPMENTS  
(i) Inflation and exchange rates 
 
Paragraphs 14 and 17:  Monetary and exchange policies are the responsibility of the Bank of 
Thailand (BOT).  The BOT's main objective is to ensure price stability as well as the stability of the 
financial system.  Since May 2000, the central bank has conducted monetary policy under a flexible 
inflation targeting framework.  In 2009, the core inflation target range was set at 0.5-3.0% per 
annum, and was maintained uncha nged in 2010 and 2011.  The BOT considers this target range 
appropriate to keep Thailand's inflation comparable  to that of its trading partners, thus helping 
maintain export competitiveness, as well as buildin g consumer and business confidence and enabling 
sustainable economic growth. The main policy instrume nt to achieve the inflation target is the BOT's 
one-day repurchase (repo) rate.  
Thailand maintains a managed floati ng exchange rate regime.  The BO T does not target a fixed level 
for the exchange rate, and intervenes in the forei gn exchange market only in case of excess volatility, 
particularly resulting from speculative capital flows.  Large capital inflows and currency fluctuations 
since 2009 have led the BOT to intervene several tim es in the foreign exchange  market to keep the 
baht aligned with other regional currencies.  
 
(Singapore) We welcome efforts made by T hailand to enhance transparency in its customs 
procedures.  We view the provision of custom s-related news, laws and regulations on the Thai 
Customs website as reforms to effectively cut the u se of illegal payments.  We would be grateful if 
Thailand could provide an update on the progress of such measures. 
 
Answer 
Customs department has initiated steps to promote gr eater transparency in the agency, through more 
than 7 major activities as follows: 1. Appointment the joint operating committee consists  of the representatives from the private sector 
and the Customs department. 
2. Establishing the working group on customs clinic  for entrepreneurs and those involving in the 
customs’ information one stop service, and assisti ng on various aspects of the customs procedure. 
3. Appointment the joint operating committee consis ts of the representatives from the American 
chamber of commerce in Thailand a nd the Thai Customs Department. 
4. Setting administrative rules for dealing with cust oms officers who have criminal behaviour or 
corruption behaviour. 
5. Setting administrative rules for dealing with co mmanding officers in which his/her subordinates 
have criminal behaviour or corruption behaviour. 
6. Establishing the committee to promote greater tr ansparency and good governance in the Customs 
Department, which includes the members of the general public that have attained virtuous 
reputation. 
7. Establishing the working group to improve th e customs services in order to enhance the 
international trade competitiveness, consisting of the Director General of the Customs 
Department, representatives from the public sector, st ate enterprises and the private sector, which 
deal with import and export. 
 
(ii) Fiscal Policy 
 
Paragraph 23-24:  According to the Secretariat’s report, rising revenue has so far allowed the 
Government to continue an expansionary polic y throughout FY2011 to support economic growth. 
However, a key challenge would be to find the additional resources necessary to meet its fiscal 
burden in the coming years. It is mentioned th at among the measures under consideration increasing  WT/TPR/M/255/Add.1 
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  the scope and rate of excise duties, new land and environmental taxes, improving the effectiveness of 
tax collection, widening the tax base by reducing ta x exemptions and deductions and streamlining the 
tax structure.  
 
(EC) In this vein, could Thailand elaborate on t hose initiatives? Could Thailand  also explain how this 
might affect foreign investors and business operators? 
 
Answer 
Thailand is under the process of tax restructuring,  not only for enhancing the tax base but also for 
creating new tax scheme. For the current status of new land and environmental taxes, the laws regarding these taxes will have to be reconsider ed due to the change of the new government. 
 (Korea) In response to the global financial and economic crisis, implementing a large stimulus 
package was unavoidable in Thailand as well as in  other countries. As a result, however, Thailand's 
fiscal condition has deteriorated with its deficit havi ng widened and its public debt continuing to grow 
rapidly. Could the Thai Government provide an  assessment of the current fiscal situation of 
Thailand? What is Thailand's strate gy to maintain fiscal soundness? 
 
Answer 
To counter the economic slowdown in 2009, the gove rnment has committed to an expansionary fiscal 
policy and Economic Stimulus Packages to enhan ce domestic demand in fiscal year 2009 and 2010. 
Moreover, the government also app lied expansionary fiscal policy in FY 2011 and 2012  in order to 
foster continuous economic growth. In essence, th e government has established eight strategic 
priorities in the FY 2012 budget as follows: 
(1) Building balance development; (2) National security; (3) Building economic growth with stability and sustainability; (4) Development of society and quality of life and increase equality; 
(5) Management of natural resources and e nvironment to support global climate change; 
(6) Management of science, tec hnology, research and innovation; 
(7) Management of foreign policy and international economic affairs; and 
(8) Promotion of good governance.  
While expansionary fiscal policy is important fo r supporting economic growth, the government still 
adheres to its framework for maintaining fiscal st ability. The fiscal sustainab ility framework, which is 
designed to keep the ratio of public debt to GDP at  less than 60% and the ratio of debt service to the 
budget at less than 15%, has been used as a guide line to conduct fiscal policy. On 31st August 2011, 
the public debt to GDP ratio was only 40.22%.  (4) DEVELOPMENTS
 IN TRADE  AND  FOREIGN  DIRECT  INVESTMENT   
(i) Composition of merchandise trade (ii) Direction or merchandise trade (iii) Composition of trade in services (iv) Foreign direct investment (FDI)  
 Paragraph 34:  Although Thailand's FDI framework is generally open in manufacturing, there 
remain significant restrictions on foreign-ownershi p in other sectors, particularly in services 
(Chapter IV).  Such restrictions, as well as regul atory hurdles, infrastructure bottlenecks, and skill 
shortages could have contributed to lower FDI inflow s over the past years, and suggest that there is 
room to improve the investment environmen t so as to enhance Thailand's international 
competitiveness.  According to the World Bank' s survey on the ease of doing business, Thailand WT/TPR/M/255/Add.1 
Page 8 
 
 
 
 
  ranked 19th (out of 183 countries and territories) in 2010,  seven places lower than in 2009, but ahead 
of all other ASEAN countries, with the exception of Singapore.  Thailand scored well for protecting 
investors, trading across borders, and dealing with licences, but poorly for starting and closing a business, paying taxes, and getting credit.
 2 
 
Paragraph 33-35:  FDI flows into Thailand dropped sharply, by 43.8%, between 2007 and 2010, 
owing in part to the impact of the global ec onomic downturn and domestic  political uncertainty, 
although they started to pick up in the second half of 2010.  The manufacturing sector remained the largest recipient, accounting for 47.5% of total FDI in flows in 2010 (Table I.5).  FDI was particularly 
targeted to export-oriented industries such as el ectrical appliances and machinery and transport 
equipment.  Other important recipients of FDI were  financial institutions, real estate, and mining and 
quarrying activities.  Japan continues to be the main  source of FDI (26.1% of total inflows), although 
its share declined during the revi ew period, especially in 2010 (Tab le I.5), followed by the EU and 
Singapore.  The share of FDI inflows from the United States dropped substantially, while that of Switzerland showed a strong increase.  FDI inflows from ASEAN, especially from Singapore, dropped significantly from 2007, mainly due to the global financial crisis and Thailand's political 
uncertainties.   
 
Although Thailand's FDI framework is generally op en in manufacturing, there remain significant 
restrictions on foreign-ownership in other sectors, particularly in services (Chapter IV).  Such 
restrictions, as well as regulatory hurdles, infrastru cture bottlenecks, and skill shortages could have 
contributed to lower FDI inflows over the past years,  and suggest that there is room to improve the 
investment environment so as to enhance Thailand' s international competitiven ess.  According to the 
World Bank's survey on the ease of doing business, Thailand ranked 19
th (out of 183 countries and 
territories) in 2010, seven places lower than in 2009,  but ahead of all other ASEAN countries, with 
the exception of Singapore.  Thailand scored well fo r protecting investors, trading across borders, and 
dealing with licences, but poorly for starting and closi ng a business, paying taxes, and getting credit.    
 
Outflows of Thai direct investment abroad mo re than doubled during the period under review 
(Table I.6).  ASEAN as a group is the main destin ation, and its share increased from 33.5% to 51.3% 
between 2007 and 2010.  Within AS EAN, Singapore is by far the largest recipient, accounting for 
33% of total outflows of Thai direct investment abroad, followed by Myan mar.  The shares of the 
EU(27), the United States, and Japan have all decr eased during the period under review, albeit with 
some wide fluctuations in the case of Japan.  By contrast, outflows of Thai direct investment to 
Australia and Canada have shown strong increases.  China's share in total outflows of Thai direct 
investment abroad was 3.9% in 2010 (down from 9.7%  in 2009).  Overall, outflows of Thai direct 
investment abroad were directed to mainly mining and quarrying, manufacturing, trade, and financial 
institutions.  (Korea) According to the "Doing Business 2011 " report published by International Finance 
Corporation and the World Bank, Thailand’s r anking in the Starting a Business Index was 
downgraded from 55
th in 2009 to 95th in 2010 out of 183 economies.  What could be the key reasons 
for this and how does the Thai  Government plan to address them? 
 
Answer 
According to the "Doing Business 2012" published by  the World Bank and the International Finance 
Corporation with the updated data as of June 1, 2011, Thailand was upgraded from 95th to 78th in 
terms of the Starting Business Index. The major factor of the improved ranking is shorter time and 
                                                      
2 World Bank online information, "Doing Business".  Viewed at:  
http://www.doingbusiness.org/rankings [20 April 2011].   WT/TPR/M/255/Add.1 
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  procedures for starting new businesses. Even though the ranking is not as it was in 2009, Thailand is 
continuing to improve these major factors in  order to upgraded ranking continuously. 
 
(Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu) Could Thailand please provide 
further details of the restrictions on foreign invest ors in service sectors such  as telecommunications, 
financial services and air transportation, and the rationale for such restrictions remaining? 
 
Answer 
The Board of Investment (BOI) does not impose foreign restriction to "the eligible list of activities for 
investment promotion", however the condition for the promotion is subject to related laws of other 
government agencies in which the BOI law do es not overrule. See BOI Announcement No. 2/2543 
(2000) and No. 10/2552 (2009) for eligible lis t of activities for investment promotion.   
 II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES (1) O
VERVIEW  
 
Paragraph 5:  The Secretariat’s report gives an overview on Thailand’s investment regime, incl. on 
negative lists restricting levels of foreign direct investment in some activities. The restricted list of 
activities under the Foreign Business Act of 1999 (" FBA") covers a broad list of service businesses 
(20) which 'Thai nationals are not yet ready to comp ete with foreigners'. Category 21 of the List 3 
refers to 'Other categories of service business except that prescribed in the Ministerial regulations'.  
 (Australia)  We note the comment that ‘amendment of cer tain legal provisions is under way to prevent 
foreign investors from using nominee shareholders or preferential voting rights to take control of Thai 
companies… ’ 
 
We would welcome further information in whic h sectors these amendments are being considered and 
an indicative timeframe. 
 
Answer  
At present, the Foreign Business Act B.E. 2542 (1999)  has been in force. No amendment has been 
made. 
 
(the Separate Customs Territory of Taiwan, Penghu,  Kinmen and Matsu) In which sectors do U.S. 
investors enjoy prefer ential treatment under the 1966 Treaty?  
 Answer 
Under the Treaty of Amity, U.S. investors can engage in all businesses under the List of the Foreign 
Business Act, except reserved by the treaty: 
1) Communications 
2) Transport 
3) Fiduciary functions 
4) Banking involving depository functions 
5) The exploitation of land, or other natural resources 
6) Domestic trade in indigenous agricultural products 
 Paragraph 13:  Overall, the Government's economic polic y continues to favour liberal, market-
based, private-sector-driven growth, with a more re cent additional focus on equity.  Competition is 
encouraged to ensure sufficient a nd sustainable economic growth in most sectors.  The strategy for 
"restoring Thailand's lost dynamism" - as the Intern ational Monetary Fund describes it - is to remove 
some of the constraints on economic activity in or der to encourage investment and reverse the sharp WT/TPR/M/255/Add.1 
Page 10 
 
 
 
 
  falls suffered since the 1990s.  The Government belie ves this should rely on exports, with domestic 
demand as a secondary means, not by promoting one sector over another, but by improving the 
environment for economic activity, widening its ge ographical scope, and then allowing business to 
decide whether to produce for the domestic or expor t market.  Government policy does nevertheless 
have some selective focus in promoting local and fo reign investment in competitive industries, giving 
priority to technological development and building up intellectual property, including for small and 
medium-size enterprises, and exports and services. 
 
(2) G ENERAL CONSTITUTIONAL AND INSTITUTIONAL FRAMEWORK  
 
Paragraph 6, page 18:  According to the WTO Secretariat report:  "A March 2011 amendment 
requires an organic law to specify the type of these (international) agreements that need parliamentary 
approval, which may allow for more flexible free trade negotiation (Section 190 and amendment)".  
 
(Canada) Could Thailand please elaborate on the organic law and clarify whether and how this may 
allow for more flexibility in free trade negotiations  and other international agreements, including 
government procurement? 
 
Answer 
Under Section 190 of the Constitution and the Ma rch 2011 amendment, there are five types of 
international agreements which need parliamentar y approval; 1) A treaty which provides for a change 
in the Thai territories 2) A treaty which provides fo r a change in the Thai external territories that 
Thailand has sovereign right or jurisdiction over su ch territories under any treaty or an international 
law 3) A treaty which requires the enactment of an Act for its implementation 4) A treaty which has 
wide scale effects on the economic or social security  of the country 5) A treaty which results in a 
significant obligation on trade, investment or budge t of the country. Section 190 requires an organic 
law to specify on the last two types of aforementi oned treaties. In this regard, the Government has 
assigned the Ministry of Foreign Affairs and the Offi ce of the Council of State of Thailand to jointly 
work on drafting the organic law which is still currently under the process.  
 
(EC) Can Thailand elaborate on the March 2011 ame ndment to the Constitution and the subsequent 
organic law defining types of agreements that n eed Parliamentary agreement (under Article 190 of 
the Constitution) and which may allow fo r more flexible free trade negotiations?  
 
Answer 
Under Section 190 of the Constitution and the Ma rch 2011 amendment, there are five types of 
international agreements which need parliamentar y approval; 1) A treaty which provides for a change 
in the Thai territories 2) A treaty which provides fo r a change in the Thai external territories that 
Thailand has sovereign right or jurisdiction over su ch territories under any treaty or an international 
law 3) A treaty which requires the enactment of an Act for its implementation 4) A treaty which has 
wide scale effects on the economic or social security  of the country 5) A treaty which results in a 
significant obligation on trade, investment or budge t of the country. Section 190 requires an organic 
law to specify on the last two types of aforementi oned treaties. In this regard, the Government has 
assigned the Ministry of Foreign Affairs and the Offi ce of the Council of State of Thailand to jointly 
work on drafting the organic law which is still currently under the process.  
 
(3) S TRUCTURE OF TRADE POLICY FORMULATION  
(i) Executive branches of government (ii) Advisory, planning, and other bodies (4) T
RADE POLICY OBJECTIVES  
(5) T RADE LAWS AND REGULATIONS   WT/TPR/M/255/Add.1 
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  Paragraph 21:  As indicated in the report, efforts continue  to streamline business’s dealings with the 
government, particularly through various online ser vices, such as the new "national single-point e-
starting business service", which cut the averag e processing time for business registration from 4 
days to 90 minutes. Reforms of this kind are needed  to make Thailand more attractive for foreign and 
domestic investors.  
 
(Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu) Could Thailand please describe 
the main functions of the "national single-point e-starting business service" and benefits that it provides?  Answer 
Thailand has released the e-Starting Business proj ect in 2010 with an aim to make the business 
registration in Thailand become easier, faster, and ch eaper.  In 2009, start up a business in Thailand, 
entrepreneur needs to visit 3 government agenci es and to obtain 3 business numbers which are 
business registration number at Department of Busi ness Development, taxpayer identification number 
at Revenue Department, and employer account number at Social Security office.  This process took approximately 4 days to complete.  Department of Business Development with Revenue Department 
and Social Security Office announced the "4S con cept" to put the e-Starting business project into 
practice including Single Point, Single Form, Single Document, and Single Number.  This concept allows entrepreneurs to visit only Department of Business Development as a Single Point for start up 
a business and to receive all 3 numbers at once without visit other 2 government agencies and the business data that received at Department of Busi ness Development will be transferred to the other 
2 government agencies for record management. 
 
The e-Starting business project was launched into 2 phases as following: 
Phase 1 Single Point: To receive 3 business numb ers at Department of Business Development 
 Single Form: Combine 3 different forms into  1 at Department of Business Development 
 Single Document: Eliminate unnecessary documents required and to submit at Departme nt of Business Development 
Phase 2 Single Number: Linking database of 3 government agenci es and allow entrepreneur to have only 1 business number 
 
The e-Starting business project offers benefits for both entrepreneurs and co untry as following table 
Benefits for Entrepreneurs Benefits for Country 
1. Reducing the process of starti ng business from 7 steps to 5 
steps 
2. Reducing the total process time from 4 days to 60 minutes 
3. Reducing the contact point from 3 to 1, thus a travel cost 
saving of 400 baht (estimate 200 baht/trip) 
4. Reducing the forms and documen ts from 3 sets to 1 set 
5. Immediate business starts up 1. Modernize system that allows easier, faster, and cheaper 
business start up 
2. Significant contribution to the e-Government initiative with 
a One Stop Services integrating functions of 4 agencies 
3. An introduction of inter-agency collaboration 
4. Reducing the working process of  government services, thus 
freeing up resources 
5. A significant reduction of paper usage 
 
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) What have been the comments 
and reactions of foreign and domestic investors to this service so far?  Answer 
The e-Starting business project was a significant achievement for Department of Business Development and other related government agencies to  improve the business register system that offer 
benefits for business operators in both foreign and dom estic.  This project established a simple Single 
Point contact and make business registration much easier and faster. The statistic record of number of business registration shows that more than 80% of business operators have received the services under e-Starti ng business which is equivalent to approximately 
45,000 corporations throughout Thailand.   
The Department of Business Development has also won 4 Quality of Public Service Awards from 
Office of the Public Sector Development Commission of Thailand (OPDC).  The awards were WT/TPR/M/255/Add.1 
Page 12 
 
 
 
 
  separated as 3 outstanding awards and 1 consol ation award.  The e-Starting business project was 
given to be one of the 3 outstanding awards of Depa rtment of Business Development.  In addition to 
this, these awards were given by the Prime Minister of Thailand on December 16th, 2010 at the Royal 
Thai Navy Convention Hall. 
 
(Separate Customs Territory of Taiwan, Penghu, Kinm en and Matsu) What difficulties, if any, have 
been encountered with this service,  and how have they been resolved? 
 Answer 
The difficulties in running the e- Starting Business project can be categorize into 3 main specific 
categories as follow:  
Process 
1. The differentiation in structure and process a nd capability of staffs in each organization. 
2. Capability of staffs in specific tasks a nd skill to adapt new system into knowledge 
management. 
3. The confident in collaborate the government agencies. 
Law and regulations 
1. Based on the history of Thai government system, each organization usually operates their 
 own work that the law regulates.  The e-St arting Business project will be the new challenges 
 for Thai government system. 2. The changes in law and regulations may affect some tasks and the result of new organization 
 structure.  Therefore, the law and regula tions process were needed to focus carefully 
 throughout 3 departments that were involved. 
Technology 
1. The differences of the system in each department  including data entry system, data filing, and 
data recoding. 
2. The process of converting 3 different numbe rs (business registration number 13 digits, 
taxpayer identification number 10 digits, and employer account number 16 digits) into 1 as 
Single Number. 
 
(Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu) What other online streamlining 
procedures has Thailand introduced with a view to reducing the business costs of investors? 
 
Answer 
In term of reducing cost and offering online services , Department of Business  Development offers 2 
services online that enable business operators to comp lete some transactions within the "starting a 
business" categories which are Online business registration and Online reserving a company name.  
 
The 2 services are as follow: 
1. Online business registration 
The online business registration en ables business operators to prepare forms and documents that are 
required for register a business and send them to th e registrar.  These forms and documents will be 
verified and confirmed by the registrar online and business operators are required to bring them to the 
Department of Business Development for register the business (fast track registration).  
 2. Online Reserving a company name 
The online reserving a company name enables business operators to do the transaction online (Check 
and Reserve name) without going to the Department  of Business Development offices.  In addition, 
there is no fee for online transaction comparing to the reserving a company name walk-in service of 
20 Baht per time.   WT/TPR/M/255/Add.1 
 Page 13  
 
 
 
 
  (6) T RADE AGREEMENTS AND ARRANGEMENTS  
(i) Thailand and the WTO 
(ii) Preferential, regional, and bilateral arrangements 
 
(India) Table II.4: Under its various FTAs, what ki nd of post-verification system does Thailand have 
on the certificates of origin issued by its agenci es? Is the system open to importers of Thailand 
products for cross-checking?  
 
Answer 
Thailand implements two methods of post-verification of certificate of origin issued by the competent 
authority. The first method is based on the administ rative request of the concerned authorities of the 
importing countries where there is reasonable doubt about the authenticity or accuracy of a certificate 
of origin. The second method is based on a risk mana gement analysis by the Thai competent authority 
in order to prevent and detect possible fraud.   
(India) Report of WTO and Thailand: In both the Repo rts, no details of Thailand’s trade through land 
border have been indicated. What steps have been taken by Thailand to encourage border trade with 
neighbouring countries? Has Thailand entered into transit-trade agreements with any country? If so, 
details of such agreements?  
 
Answer 
One of the steps Thailand has taken to encourage border trade is to provide transport facilitation. 
Many Agreements and MOUs regarding transit trans port are drafted, some are signed. For example, 
Thailand is a party to the regional and sub-regi onal agreements, which are AFAFGIT, AFAFIST and 
GMS-CBTA. Moreover, Thailand has entered into b ilateral agreements with  Malaysia and Laos: 
MOU between Thailand and Malaysia on the Movement in Transit of Perishable Goods by Road from 
Thailand through Malaysia to Singapore and Agreement between THAILAND and LAO PDR on 
Road Transport respectively. 
 
(Mexico) In paragraph 27, the Secretariat mentions  that some of the agreements negotiated by 
Thailand overlap and that this comp lexity can engender additional costs because of the need to figure 
out which agreement is most suitable and to get ho ld of the right paperwork to obtain the correct 
clearance.  Is Thailand considering the possib ility of convergence and unification of the different 
trade agreements that it has negotiated?  Answer 
Thailand has negotiated free trade agreements (FTA s) with 8 countries and is a membership to 
2 economic blocs, namely, ASEAN and BIMSTEC.  In ASEAN, we realize divergence from the 
different trade agreements that each member has ne gotiated. Therefore, ASEAN has sought to explore 
possibility of convergence of trade agreements  by initiating a framework of ASEAN+3 and 
ASEAN+6, which are currently being studied.  Paragraph 39:  The Secretariat’s report states that Thailand is well behind schedule on allowing 
foreign ownership in service sectors. 
 
(EU) Could Thailand please give an update on the state of play of its liberalisation commitments on services within AFAS?  
 
 
 WT/TPR/M/255/Add.1 
Page 14 
 
 
 
 
  Answer 
Thailand has been undertaking crucial steps in lib eralizing trade in service under ASEAN Framework 
Agreement on Services: AFAS and the AEC Bluepr int. All of the main service sectors namely 
Business services, Communication services, Construction and related Engineering services, Distribution services, Education services, Environmental services, Health related and Social services, Tourism and Travel related services, Recreationa l, Cultural and Sporting services and Transport 
services are included under schedule of commitment.  
 We are constantly improving our schedule according to  the target set out in the AEC Blueprint with 
wider sector coverage and deeper level of commitme nt. Various agencies have taken parts in keeping 
up with the liberalization target and we remain optimistic that the goal of AEC 2015 should be 
achieved as planned.  Bilateral arrangement 
 
Paragraph 59 and 67:  It is reported that Thailand believes th at bilateral free trade agreements can 
be an effective catalyst for liberalization and even tually a building block for the multilateral trading 
system. Among the countries that have been c onsidered by Thailand for bilateral free-trade 
agreements are Chile, Pakistan, Papua  New Guinea and Hong Kong, China.  
 
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) What are Thailand’s main 
considerations in selecting potential future FTA partners?  
Answer Thailand believes that retaining our level of trade an d investment liberalization is one of the ways to 
maintain our level of growth than jumping on the protectionist train. We have negotiated free trade 
agreements (FTAs) with 8 countries and are a member ship to 2 economic blocs. Our priority is to 
show our will in concluding the D oha round negotiation and initiate  new negotiations with potential 
economies like GCC, Mercosur or Chile. 
 
(7) T
RADE DISPUTES AND CONSULTATIONS  
(i) Dispute settlement under the GATT/WTO (ii) Other 
 
Paragraph 71:  Thailand maintains a relatively open foreign investment regime.  It views foreign 
direct investment (FDI) as vital to the economy's growth, and encourages investors from all sources;  FDI inflows have remained robust during the period under review (Chapter I), and Thailand is ranked 
a high 19th in the World Bank's Doing Business 2011  report and is well-placed in UNCTAD's World 
Investment Prospect Survey 2010–12 . The downside is that it has among the most stringent limits on 
foreign equity holding, according to another Worl d Bank publication with the majority of sectors 
compared subject to restrictions.  Sectors fully open to foreign capital participation include light 
manufacturing, pharmaceutical products, and food  products.  The Foreign Business Act B.E.2542 
(1999) lists sectors and business activities where fo reign ownership must be below 50%, although in 
some cases this can be raised with special permission.  Some restrictions are contained in laws 
specific to the sector, for example telecommunications.  
 
(Australia) Does Thailand have any plans to review  the Foreign Business Act B.E.2542 (1999) and 
restrictions on sectors and business activities wher e foreign ownership must be below 50%? 
 
 
  WT/TPR/M/255/Add.1 
 Page 15  
 
 
 
 
  Answer 
At present, the Foreign Business Act B.E. 2542 (1999)  has been in force. No amendment has been 
made.  
 Paragraph 72:  During the period under review, foreign investors were more concerned about 
political instability and unpredictability and less abou t some of the issues such as infrastructure and 
the energy outages that featured in the previous review.   Among the concerns about uncertainty 
raised were a 2009 court decision to halt temporarily dozens of large-scale projects in Map Ta Phut, the country's biggest industrial zone;  and the repeated postponement of the auction for third-generation mobile-telephony licences.  Other w eaknesses in Thailand's investment environment 
include low education levels and a shortage of su itably qualified workers, infrastructure bottlenecks, 
particularly in and around Bangkok and the eastern seaboard, intellectual-property rights violations, 
and red tape.  
 
(China) Paragraph 72 points to a number of weakn esses in the investment environment, including 
political instability and unpredictability, lack of infrastructure, and intellectual property rights 
violations.  Has the Government adopted any  policies to address this situation? 
 
Answer 
The Thai Government has always regarded foreign investment as one of the economic driving force, 
in which investment promotion is administered by Thailand Board of Investment (BOI). In line with 
global concerns in regards to rising fuel price a nd energy outage, as well as environmental concerns, 
investment promotion measures has been geared towards encouraging investment in alternative 
energy, environmental-friendly mach inery, products and infrastruct ure development to support these 
industries. From 2009-present, the BOI introduce sustainable investment promotion package to 
promote energy conservation and environmental pres ervation activities. In regards to labour, Thailand 
endeavours to upgrade our production transitioning  to a more high-tech industry and less labour 
intensive and encourage labour intensive industry to other countries where labour is still available by 
promoting Thai overseas investment. 
 
(8) F
OREIGN INVESTMENT REGIME  
(i) Recent developments  
Paragraph 71:  The Secretariat’s report indicates that d espite Thailand’s relatively open foreign 
investment regime, Thailand has "among the most st ringent limits of foreign equity holding" with 
"the majority of sectors subject to restrictions".  
 
(EC) Can Thailand provide details  on the update of the review/proposed amendment, if any, of the 
Foreign Business Act B.E. 2542 (1999) if any? Can Thailand also reassure Members of its 
commitments to progressive liberalisation of its trade and investment regime and its commitments 
under the General Agreement on Tr ade in Services (GATS) and how to  reconcile this with the 
continuing existence of the FBA?  Answer 
At present, the Foreign Business Act B.E. 2542 (1999)  has been in force. No amendment has been 
made. 
 
   
 WT/TPR/M/255/Add.1 
Page 16 
 
 
 
 
  (ii) Basic framework 
(iii) International agreements   
Paragraph 78:  Thailand has been a member of the Worl d Bank Multilateral Investment Guarantee 
Agency (MIGA) since 29 April 2000.  Thailand also  has bilateral investment treaties (BITs) with 
38 economies.  It is a party to the Agreement on the Promotion and Protection of Investments 
concluded amongst the ASEAN countries, and the Convention on the Recognition and Enforcement 
of Foreign Arbitral Awards (the New York Conv ention), and is a signatory to the International 
Convention on the Settlement of Investment Disput es between States and Nationals of other States 
(the ICSID Convention).  Although it has mode rnized its own arbitra tion and conciliation rules 
(Arbitration Act B.E. 2545 (2002) a nd Regulations on Compliance with  Arbitration Awards, 2001) in 
line with the UNCITRAL Model Law on Internationa l Commercial Arbitration, Thailand has been in 
the lengthy process of ratifying the ICSID Conven tion.  The authorities indicate that, in any case, 
foreign investors have access to other reliable dis pute settlement procedures under applicable BITs 
and FTAs that include ad hoc  arbitration under the UNCITRAL rules.  Other avenues being used by 
foreign investors to resolve disputes are the 1990 arbitration and conciliation rules of the private 
Arbitration Institute under the supervision of th e Court of Justice, and the Thai Commercial 
Arbitration Rules administered by the Thailand Board of Trade.  The Department of Intellectual 
Property, Department of Insurance, and the Security and Exchange Commission also provide 
arbitration services.   
 
(US) When will Thailand complete its ratifica tion of the ICSID Convention?  Does the Thai 
Government include arbitration clauses in concessi ons and government contracts?  Is the Thai 
Government considering an amendment to the Ar bitration Act that would exempt government 
contracts from arbitration procedures?   
 
Answer 
Thailand has not yet ratified the ICSID Conventi on and the Thai Government will allow using 
arbitration clauses in concession and government c ontracts on case by case basis. Last year, the 
Cabinet has not approved the resolution to amend th e Arbitration Act as proposed by the Council of 
State.     
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) 
INTRODUCTION  
 
Paragraph 4:  The Secretariat’s report noted that, despite some improvements, imports to Thailand 
still often face burdensome requirements, including extra fees, surcharges and certificate-of-origin 
requirements.  
 (EC) In light of the importance of these regulati ons to business operators, what are future concrete 
steps Thailand intends to undert ake to further facilitate trade and increase the ease of doing business 
in Thailand?  Answer 
Regarding the EODB, Thailand has been active to  facilitate trade and increase the ease of doing 
business. The government has already instructed th e Office of the Public Sector Development 
Commission to act as the main driv ing force to develop the countr y to meet World Bank’s EODB 
criteria. It has also worked with National Institute  of Development Administration (NIDA) to study on 
how to make governmental services faster and easier.     WT/TPR/M/255/Add.1 
 Page 17  
 
 
 
 
  Paragraph 7:  According to the secretariat report, Tha iland maintains several schemes to promote 
and facilitate exports including bonded warehouses, duty drawback, and other duty and tax refund 
schemes, as well as tax and non-tax benefits under the Industrial Estate Authority  of Thailand and the 
Customs Free Zones scheme.  The state-owned Export-Import Bank of Thailand (EXIM Bank) also provides a wide range of credit and insurance fac ilities to promote exports of goods and services, the 
facilities include working capital loans, term loans,  financing for overseas projects, export credit 
insurance, buyers/bank risk assessment, buyer' s credit, and export insurance.  (WT/TPR/S/255 
Page 47 Para 7)  
 
(Indonesia) Indonesia has a strong interest to gat her the information on promotion and export 
facilitation as much as possible, and we can see t hat Thailand has a comprehensive scheme on the 
above mentioned information. It would be highly ap preciated if Thailand could share its experience 
on model on schemes of promotion and export facilitation.  
 Answer 
The schemes pertaining promotion and facilita tion of exports including bonded warehouses, duty 
drawback, and other duty and tax refund schemes , as well as tax and non- tax benefits under the 
Industrial Estate Authority of Thailand and the Customs Free Z ones scheme are under responsibilities 
of The Board of Investment of Thailand, Industri al Estate Authority of Thailand and other related 
government agencies. Therefore, details in formation has to be obtained from them. 
 As for EXIM, we have the mission to support ex port and import activities including investment in 
Thailand and overseas. As such, we offer variety of  products related to short-term and medium- to 
long-term loan and insurance at market price to support exporters, importers and investors. EXIM 
products are such as:  1. Working capital lending in relation to pre- and post- shipment facilities 
2. Medium and long-term loan in relation to expansion of production capacity, etc. 
3. Fx forward contract 
4. Loan in relation to trading and investing overseas 
5. Insurance consisting: 
 Short-term export insurance including EXIM SURE, EXIM FLEXI and EXIM 4 SMEs 
 Medium and long-term export insurance  
 Investment insurance 
 
For more information, kindly: 
 visit www.exim.go.th 
 contact our Customer Service Centre at +662 271 2929 
 contact our headquarter at +662 271 3700 or fax +662 271 3204  
 
The BOI offers tax and non-tax incentives in general to investment according to the list of eligible 
activities. Information is available on www.boi.go.th. 
For bonded warehouses, duty drawback, other duty and tax refund schemes, and Customs Free Zone 
scheme, see www.customs.go.th. 
For tax and non-tax benefits unde r the Industrial Estate Authority of Thailand, see www.ieat.go.th. 
For EXIM Bank, a wide range of credit and insu rance facilities to promote exports of goods and 
services, the facilities include working capital loans,  term loans, financing for overseas projects, 
export credit insurance, buyer/bank risk assessme nt, buyer’s credit and export insurance, see 
http://www.exim.go.th. 
 WT/TPR/M/255/Add.1 
Page 18 
 
 
 
 
  Paragraph 9:  The Secretariat’s report notes that "/…/government procurement in Thailand remains 
complex, as different government agencies are resp onsible for their own procurement, and several 
procurement methods are used, not a ll of which are open to competition."  
 
(EC) Is there a program for simplifying and har monizing existing government policies and practices 
on public procurement so as to increase transpa rency and integrity in the system? Also, could 
Thailand please clarify further the types of c ontracts which are and which are not awarded under 
open  and competitive  conditions?  
 
Answer 
 
 
In order to standardize public procurement, all of  government agencies are required to use electronic 
government system (E-GP). According to above picture, it shows that the E-GP has been improved the scopes which aim to covers all public procurement methods and processes. By doing so, the 
system is used for simplifying and harmonizing exis ting government policies and practices in order to 
improve transparency and integrity.  
Also, could Thailand please clarify, further the type of contracts which are and which are not 
awarded under open and competitive conditions? 
 
Answer 
There are two procurement methods which are not applied in open and competitive conditions: 
Special method.   WT/TPR/M/255/Add.1 
 Page 19  
 
 
 
 
  
 
 
The special method shall apply in case of procur ing value more than 100,000 baht. Generally, in 
special method, the head of government agency sha ll appoint the committee in charge of procuring to 
implement the method by directly inviting specific suppliers to propose their prices. However, in 
order to apply this method, there are sever al conditions needed to be considered.  
Firstly, the special method is used in case of:  
 goods have to be purchased urgent ly and its delay may cause detriment to the government agency 
 goods or services for secret service  
 goods or services those have already been pr ocured but it is necessary to use more  
 urgency or for the benefit of the government  
 goods or services necessitated to be procured directly from abroad  
 goods necessitate to be mention the specific brand na me due to some limit in usage or technique  
 goods which are lands or buildings necess itate to locate at specific area  
 goods or services which are not successfully procured by other methods. 
 
The committee shall check prices directly from sp ecific suppliers. For this method, the committee 
shall submit the result of its evaluation and recomme ndation together with all documents received to 
the head of government agency through the chief procurement officer for further action.  
 
 Special case methods WT/TPR/M/255/Add.1 
Page 20 
 
 
 
 
  
 
 
The special case method shall apply in case of proc uring value of more than 100,000 baht. This 
method is for procuring goods or service from gove rnment agency or government body established 
under the law of local administration or other un its set up by law with the status of a local 
administration or state enterprise. Moreover, this me thod shall be carried out in case that the materials 
or works which are manufactured or carried out by the government agency itself and the Prime Minister approves for it and in case of law or cabin et’s resolution specified to carry out by this 
method. For special case method, the head of gove rnment agency is able to place and order for 
purchasing or contacting for works directly to the sellers as well. 
 Paragraph 11:  As noted in the Secretariat report, Thailand continues to apply price monitoring and 
price controls system on a wide range of prod ucts and services.  Prices of goods and services are 
regularly monitored through requirements for appr oval before prices can be changed, prior 
notification of price changes, and price labelling.  
 
(Indonesia) Indonesia appreciates Thailand’s policy on price monitoring and control. Indonesia 
would like to have further elaboration on obstacles or problems in implementing this policy as controlled goods or products do not belong to government and how the Government of Thailand 
overcome these obstacles and problem. This elaborati on is beneficial for Indonesia as a reference to 
implement such policy in the futu re. Furthermore, what is the (significant) benefit for Thailand to 
implement the said policy?  Answer 
The Ministry of Commerce implements the Government policy in protecting consumers ’ interest and 
maintain commodity prices at an appropriate level a nd fair to all. Inflationary price rises and increases 
in the cost of living are today threat ening to undermine our defence effort. 
 The Department of Internal Trade, as the author ity agency, puts several measures to monitor and 
control the prices of goods and services to ensure consumer protection, the department endorsed two 
legislative acts in 1999. Those were the Pri ces of Goods and Services Act and the Weights and 
Measures Act. These acts correlate prices with pr oduction costs and ensure supply meets demand.  WT/TPR/M/255/Add.1 
 Page 21  
 
 
 
 
  They also encourage cooperation fair and hon est trading while ensuring consumers receive 
appropriate prices of goods and services. In additio n, the DIT seek to enable consumers to obtain 
optimum benefit from their economic resources an d get the satisfactory production, performance 
standards, adequate distribution, fair business pr actices, effective protection against practices which 
could adversely affect the ec onomic interest of consumer. 
 The DIT’s  Prices  Supervisory Measures 
The measures intended to sustain domestic prices of cer tain products because of price fluctuation in the 
domestic market or price instability.  Furthermore, the measures intended to counteract the damage caused by the application of unfair trade practices.  The DIT puts several measures to monitor th e prices of goods and services as follow: 
1. Measures for Price Monitoring 
 Objective  
- To ensure fair and proper price of consumer products. 
- To ensure observance of correct weights and measures concerning products. 
- To ensure an adequacy of the products. 
 
The DIT oversees prices at origin  )prices at factory (to be in line with production costs and 
reasonable with 57 items designated as goods and service under control, and 205 items under close 
monitoring.  Under the Prices of Goods and Services Act 1999, pr oducts are controlled under two lists, namely the 
Controlled List and Monitored List. 
 The Controlled List  includes 55 items of goods and 2 services.  
 The Monitored List  covers 205 products divided into 11 groups such as: 
 Fresh Food Group 
 Food and Beverages Group. 
 Household Product Group 
 Agricultural Chemicals Group 
 Construction Material Group 
 Petrochemical Products Group 
 etc.  
 Furthermore, the DIT oversees prices at final destination  )retail prices (by requiring entrepreneurs to 
display prices for consumers to compare be fore deciding to buy goods and services. 
 2. Administrative Measures 
 Closely monitor pricing situation to ensure that pr ice adjustment is in acco rdance with actual cost, 
quantity, quality and standard especially for the 200 items of Watch List products. 
 Follow up system for the effect of principal pr oduction factors on product cost and selling price. 
 Prescribe the warning system for the Watch Li st items with focus on selling price as the 
following: 
 (a) Sensitive List  - both domestic and international pr ices of products are monitored  
  closely every day. 
 (b) Priority Watch List  – domestic prices a nd general market situation are monitored 
  twice a week. 
 (c) Watch List
 – product prices are monitored every two weeks WT/TPR/M/255/Add.1 
Page 22 
 
 
 
 
   Coordinate with manufacturers’ cooperation on pri ce change information together with reason of 
such change and on regularly supply of the products to the market.  
 Require price display for 232 products and 48 services. 
 Monitor, supervise, inspect and follow up that th e entrepreneurs or traders in manufacturing areas, 
fresh markets, or regular market places to co mply with laws and regulations under the 
measurement of governme nt determination.  
 Cooperate with other authorities re lating in taxation, custom duty and infrastructures as to affect 
cost of products. 
 
3. Legal Measures 
Objective: 
 To prevent consumer disadvantages on product pricing and hoarding.  
 To prescribe products under control.  The Centra l Commission on Prices of Goods and Services 
(CCP) is authorized to add product items to be product under control.  
 
Measures on Pricing 
1) Impose maximum price for product or service. 
2) Impose maximum profit rate or profit margin at any trading level. 
3) Prescribe selling price and quantity supply of pr oduct under control or direct the trading 
 channel and method. 
4) Require the producer/importer/agent to report se lling prices , credit conditions and inform of 
 rice changes in advance between 7 – 15 days and forbid any change in price or trading 
 method without approval. 
 
By administrative price fixing, the DIT has the au thority to impose the maximum prices of sugar. 
Generally, price fixing is inappropriate for free trad e, but it may nevertheless be tolerated or even 
sanctioned by the government at various times, in addition to price control  was effective in keeping 
prices down or without it prices of consumer goods woul d have risen much more than they did or was 
not unduly high. Price control could have been even mo re effective; direct and indirect price increases 
could have been prevented to a greater extent than they were. Price Control  is usually justified as a 
way to help consumers. 
Measures on Supply Control 
1) Require a report on quantity supply, cost, inve ntories, stock holding, warehouse location, 
production, and selling plan.   
2) Require the product storage or additional reserve amount.  
3) Control quantity of product inflow to or outflow from certain area. 
4) Allocate the purchase or sale volume of product under control and arrange the purchasing and 
selling condition. 
5) Control the utilizing, selling, or transforming quantity. 
6) Prescribe measures to prevent hoarding. 
4. Supportive Measures to reduce the cost of living 
 Organizing the "Blue Flag Low Price Fa  ir to sell agricultural products and necessary consumer 
product at lower than market prices. 
 Setting "Blue Flag Corners" in department stores with modern retail and wholesale trading outlets 
to offer consumer goods at low prices. 
 Creating a "Network for Blue Flag Friend Food Shops" and "Blue Flag Food Shops" where ready 
- to - eat food is sold at 20 – 25 baths a portion.  WT/TPR/M/255/Add.1 
 Page 23  
 
 
 
 
   Coordinate with manufacturers and/or traders to a dd supply to any market with inefficient market 
mechanism. 
 Establish the direct linkage from manufacturers or distributing agents to the local retailers. (In the 
case where shortage or unreasonably high prices occur in local area).  
At present, world oil prices have been fluctuating acco rding the day-today situation. The rise of prices 
affects every economic sector because oil is the co mmodity product which use worldwide therefore, 
there are so many uncontrollable factors both direct and indirect that influent the global oil price 
movement, especially " diesel ." Raising diesel prices would hurt the public because diesel is the main 
fuel for the transport sector and affects the ec onomy through production and transportation cost. In 
addition, the rise of raw material prices and mi nimum wage affects production cost as well. That 
would lead to the price adjustment.  The price adjustment based on the principles of: 
1. Justifiability 
2. Fairness 3. Graduality 
 
In practice some products in the Controlled List need  to receive an approval before raising their prices 
and some others products, manufacturer s have to report or inform the price changes of their products 
to the DIT. The DIT can request the manufacturers to review their price, if the prices are deemed too 
high or too low after a technical cost analysis for the product.  The same is true for products in the Monitore d List in which the DIT has implemented the 
administrative measures requesting for collaboration from the manufacturers such that any change in 
prices shall be reported. In general, most manuf acturers follow the DIT’s requests as the DIT may 
take legal actions against those who do not or reclass ify their products into the Controlled List in the 
following year. In addition, sometimes the DIT re quests for collaboration from the entrepreneurs to 
freeze the prices of goods during the short period.  Inspecting Trade Practices to Protect Consumers’ interest 
The DIT inspects trade practices by checking the labelling, the accuracy of weight and measures, 
including the prevention of hoarding and profiteering.  
Establishing the 1569 Hotline 
Establishing the 1569 hotline to allo w public participation in giving hints on commodity price control.  
Also, Mobile Units are stationed at target points in communities such as at transport terminals, for 
immediate inspections upon receiving the complaints.  
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures 
(a) Recent developments 
 
Paragraph 14:  Customs procedures have been fully paperless since 2008, via electronic data 
interchange (EDI), within the department and more recently with other agencies.  The next step will 
be to have a single-window service within Tha iland, which the Government hoped would be fully 
operational by late 2011 or 2012, that would allow trad ers to use a single contact point to reach all the 
required authorities and permit-issuing agencies.  These electronic innovations continue to cut processing time, which was already falling because of reforms introduced in earlier years. Electronic 
services on the department's "customs clinic" webs ite cover: exchange rates, vessel and flight 
schedules, customs over-time fee checking, e-tracking,  software for pre-transfers, import and export WT/TPR/M/255/Add.1 
Page 24 
 
 
 
 
  statistics, advanced ruling on customs tariff cla ssification forms, advanced ruling on customs 
valuation forms, advanced ruling on rules of orig in, customs fee forms, duty compensation forms, 
duty drawback forms, customs declaration forms,  registration forms, counter service submission 
forms, application forms for agents.  It was also reported that these reforms would cut the widespread 
use of illegal payments and help eradicate the Cu stoms Department's reputation as one of the most 
corruption-plagued agencies in government.  Despite this, and other means such as pay rises and other 
incentives, a customs hotline, and private-sector part icipation in solving problems, Thai and foreign 
companies were still complaining of a serious problem in 2010.  
 
(Australia) The Secretariat’s Report notes ‘Thai and foreign companies were still complaining of a 
serious problem in 2010’ with Thailand’s customs procedures. In this regard, we would welcome 
advice on progress towards amendment to the Custom s Act which would reduce the rewards paid to 
Customs officials and review the penalties system to  take into account intent in the levying of 
penalties.  Answer 
The draft amendment to the Customs Act is now under consideration of the Council of State. It 
proposes to reduce the rewards paid to  customs officials, from 55% to 45% of the value of the exhibits 
or the fine.   
(EU) Could Thailand indicate how it intends to res olve the problem of corruption within Customs? 
Could Thailand provide examples of specific  actions taken to tackle these problems?  
 
Answer 
The working procedures, regulations and the use of power by customs official s are in accordance with 
the domestic laws of Thailand. The Thai Customs Department has placed its utmost commitment to resolve the problem of corruption w ithin the customs, as well as to im prove transparency of the Thai 
Customs regime. 
 
In this regard, various amendments to the Cu stoms Act, such as the deletion of Article 11 bis which 
allows for discretionary authority of the Director Ge neral to prescribe the customs value of imports, is 
a good example of actions that the Thai Customs has undertaken to tackle this problem. 
 
(EU) In addition, could Thailand provide more deta iled information about the proposed Customs law 
reform on reward scheme, in particular in the a rea of rewards, including its content and expected 
time of adoption?  
 Answer 
The details of proposed Customs Act reform on reward scheme are as follows: Bonus Payment = 30% of the value of the exhibits or the fine 
 Rewards = 15% of the value of the exhibits or the fine 
 Thai Customs Department expects to adopt the new reward scheme as soon as completing a 
legislative process.  
 Apart from the Thai Customs Department, Thailand ’s legislative function is also involving in 
other draft Acts from various government agencies, therefore, the timeline for the adoption of the 
new Customs Act is beyond our control. 
 
(US) The Secretariat says that despite the steps taken to date by the Thai Government, Thai and 
foreign companies complain about corruption in the Customs Department.  What additional steps is 
the Thai Government taking to  further reduce corruption? 
  WT/TPR/M/255/Add.1 
 Page 25  
 
 
 
 
  Answer 
Customs department has initiated steps to promote gr eater transparency in the agency, through more 
than 7 major activities as follows:  1. Appointment the joint operating committee consis ts of the representatives from the private 
sector and the Customs department. 
2. Establishing the working group on customs clinic for entrepreneurs and those involving in the 
customs' information one stop service, and assisting on various aspects of the customs procedure. 
3. Appointment the joint operating committee consis ts of the representa tives from the American 
chamber of commerce in Thailand a nd the Thai Customs Department. 
4. Setting administrative rules for dealing with cust oms officers who have criminal behaviour or 
corruption behaviour. 
5. Setting administrative rules for dealing with co mmanding officers in which his/her subordinates 
have criminal behaviour or corruption behaviour. 
6. Establishing the committee to promote great er transparency and good governance in the 
Customs Department, which includes the members of the general public that have attained 
virtuous reputation. 
7. Establishing the working group to improve the customs services in order to enhance the 
international trade competitiveness, consisting of the Director General of the Customs 
Department, representatives from the public sector , state enterprises and the private sector, 
which deal with import and export. 
 (US) How do Thailand’s paperless customs procedures identify consistent errors or violations in 
import documentation?  Answer 
Thai Customs has implemented the e-Customs paperless service to facilitate import and export procedures 
nationwide since 2008. Its service consists of e-Im port, e-Export, e-Payment,  e-Licensing, e-Express, e-
Tracking, e-Manifest and e-Seal by  using RFID technology. With th e e-Customs system available for 
24 hours a day and 7 days a week, cargo movements and clearances are faster, easier and cheaper. Risk Management system and Public Key Infrastructure and Digital Signature have been adopted to facilitate trade and reduce violations of import and export procedures. 
 
Paragraph 15:  WTO Secretariat Report had indicated that Th ailand is neither a contracting party to 
be International Convention on the Simplificati on and Harmonization of Customs Procedures nor 
International Convention on the Harmonization on frontier Controls on Goods. However, in the 
report it expressed its intention to accede to Revised Kyoto Convention.  
 
(India) Can Thailand be pleased to indicate the p eriod within which it will accede to the Convention? 
 
Answer 
Thailand will become a party to the Revised Kyot o Convention (RKC) as soon as the legal framework 
for the implementation of RKC is completed.  
 (US) The Secretariat says that Thailand "has expre ssed its intention to accede to the Revised Kyoto 
Convention."  What amendments to the Customs La w is the Thai Government considering to comply 
with the Revised Kyoto Convention?  The Secretar iat Report indicates that amendments had been 
under consideration in Parliament prior to being disrupted by political events.  We understand that 
these amendments have not been ref erred to the current Parliament, but have been returned to the 
Ministry of Finance to restart the process.  Is our  understanding correct?  What are the next steps in WT/TPR/M/255/Add.1 
Page 26 
 
 
 
 
  the process and when does the Ministry of Finance ex pect to produce a new draft?  Is the Thai 
Government considering amendments to the Custom s Law that: (1) are similar to the customs 
legislation submitted to the Thai Parliament in  2010 and/or (2) address the rewards system and/or (3) 
provide the Customs Department with ex officio autho rity to interdict in-transit shipments?     
 Answer 
To comply with the RKC, Thai Customs is c onsidering the amendment on the following issues: 
 1) De Minimis 2) Advanced – Binding Ruling 3) Electronic Commerce 4) Risk Management (General Annex) 
5) Outward Processing (Specific Annex) 
 
 As the draft amendment had been disrupted by past  political events, they had been returned to the 
Ministry of Finance for restarting the process.  
 Thai Customs Department is preparing to res ubmit the customs legislation, similar to the 
legislation which was submitted to the Thai Parlia ment in 2010, to the Ministry of Finance once 
again.  
 (New Zealand) The Secretariat report (page 48) notes that Thailand is not yet a contracting party to 
the International Convention on the Simplification and Harmonisation of Customs Procedures.  Thai 
Customs has implemented many reforms over re cent years and is largely consistent with the 
standards laid down in the Revised Kyoto Conven tion.  Does Thailand have a time-line for accession 
to this Convention? 
 Answer 
Thailand will become a party to the Revised Kyot o Convention (RKC) as soon as the legal framework 
for the implementation of RKC is completed.  
 
(ASEAN) The Secretariat’s report mentions that T hailand’s imports face high or complex tariffs, 
quotas, and other measures, and burdensome requirem ents including extra fees, surcharges, and 
certificate-of-origin requirements, regulated thro ugh customs controls, duties and taxes. This is 
especially so in the agriculture, motorcycles, al coholic beverages, fabrics, and paper products 
sectors. What plans does Thailand have to reduce such  burdens to facilitate trade in these sectors? 
Also does Thailand have an update on efforts to implement its National Single Window? 
 Answer 
Thailand National Single Window has been established  since 2008 in response to  the national policy and 
ASEAN Agreement for ASEAN Sing le Window implementation. At  present, it enables electronic 
document exchange among government and business st akeholders. We are committed to enhancing the 
Thailand National Single Window in order to enable paperless trading nationwide in the near future. 
 
(b) Registration 
 
Paragraph 16:  All importers and government ag encies are required to register.  Special treatment is 
given to companies eligible for a "gold card" system :  they must have registered paid-up capital of 
not less than B 5 million, have been engaged in import-export for at least three years, and be a member of the Federation of Thai Industries, the Thai Chamber of Commerce or the Thai Gold Card 
Importers and Exporters Association; they must ha ve not violated customs laws and regulations for 
three years, and must provide a bank guarantee.  They are exempt from regular inspection.   WT/TPR/M/255/Add.1 
 Page 27  
 
 
 
 
  Government agencies, state enterprises and compan ies granted duty exemptions by the Board of 
Investment are also eligible.  
 
(US) What products c an be imported under the "gold card" system?   
 Answer 
All products, except for prohibitive goods, can be imported under the "gold card" system, unless the 
rule and regulation states otherwise.  The eligibility for a customs privilege for each company is not determined by the type of goods but by 
considering if the company can reach our high level standards (Gold Card)  
 
(c) Customs inspection and valuation procedures 
 
Paragraph 17:  Further reforms to strengthen customs valuation under the WTO Agreement were 
introduced during the period covered by the last Re view.  Under the current procedures, valuation 
takes into account information on invoices and othe r documents, such as country of origin, quantity, 
composition of value, and description of goods).  Valua tion is based on the c.i.f. (cost, insurance, and 
freight) price of imports.  Customs officials accep t the declared value shown in the invoice as the 
transaction value, i.e. the export price actually paid  or payable for the goods when sold to Thailand, 
adjusted and meeting prescribed conditions.  If the transaction value cannot be applied, other 
methods are used in the following sequence: the transaction value of identical goods and similar 
goods;  the deductive value;  computed value;  and a fallback estimated value.  Importers may appeal 
valuations within 30 days under customs laws in  force since 2000.  The decision of the Appeal 
Committee is final except if the importer raises con cerns in a Tax Court.  An "advance ruling" policy 
for customs valuation was announced in 2009, implemented in 2010, and is now available as an Electronic Advance Ruling on Valuation system.  Th e authorities say this is for transparency and 
consistency, and to enable importe rs, exporters, international trade en trepreneurs, and others to be 
more competitive.  
 
(EU) Can Thailand provide assurances that customs valuation practices will continue to conform to 
WTO rules? What steps is Thailand taking to ensure that Thai Customs legislation ensures 
transparency and predictability, specifica lly the Customs reward scheme? 
 
Answer Yes, Thailand can provide assurances that the customs valuation practices will continue to conform 
with the WTO Agreement because: 
 The Thai Customs Regime and the Customs Valuation process in Thailand complied with WTO 
Valuation Agreement and Thai National Law (n amely the Customs Act (No.17) B.E. 2543 and 
Ministerial Regulations No.132 (B.E. 2543). 
 Moreover, we always review the laws and re gulations relating to customs procedure and 
valuation, with a view to update them, if necessary.  
 Furthermore, in order to increase transparency  in Customs valuation procedures, Thailand is 
currently applying the Price Database based on th e WCO Valuation Database Guideline. Such 
Price Database is being used by a Customs Administration only for the purpose of risk 
assessment, particularly in assessing potential risks re garding the truth or accuracy of the declared 
value for imported goods. However, the Price Data base will not be used to determine the customs 
values of the imported goods. The price data is co llected and/or verified by statistical method as 
well as well-founded research methodology.  It is worth stressing that the Thai Customs primarily 
use the transaction value method to determ ine the customs values of the imported goods. 
 In addition to setting out obligations to prom ote transparency and consistency as well as 
facilitating trade for importers and international tr ade entrepreneurs, the Customs Department has WT/TPR/M/255/Add.1 
Page 28 
 
 
 
 
  issued policy relevant to the advance ruling on valuation since 2009. At present, the system has 
been being developed to become an automatic system in the project called the "Electronic 
Advance ruling on Valuation". 
 Finally, we also have established the E- Custom s in order to further promote transparency and 
facilitate the procedure for customs valuations, c onsistent with the WTO Agreement, as shown in 
the following diagram;  
 
(Annex 1) 
All these steps are being undertaken to ensure that the Thai Customs Legislation is fully transparent 
and predictable, specifically on the Customs reward scheme.  
 
(US) Please provide more information about the appeals process, including whether decisions on 
appeals are provided in writing and whether the officials involved in the appeals process are 
independent of the officials w ho made the original ruling. 
 
Answer How to make an appeal? 
If the appellant desires to appeal the customs offi cer’s valuation, he/she can submit a written request 
in the appeal form as determined by the Director General (Form Kor Sor Kor  171) together with all 
supporting details such as the import entry number wh ich the appeal is for;  the Assessment Notice 
(Form Kor Sor Kor  114 or Form Kor Sor Kor  115); the amount of Customs duties; the aspects of 
disagreement, including reason and evidence, etc.  
To whom does importer or exporte r have to submit the appeal? 
According to Article 112 septem  of the Customs Act B.E. 2469, amended by the customs Act(17) 
B.E. 2543, the appeal form must be submitted to the Appeal Committee comprising of: 
 The Director-General of Customs, acting as the Chairperson  
 A representative from the Ministry of Finance, acting as a Member  
 A representative from the Council of State, acting as a Member  
 5-7 experts appointed by the Director-General of Customs, acting as Members 
 
  WT/TPR/M/255/Add.1 
 Page 29  
 
 
 
 
  Deadline to submit an appeal 
The right to submit a request for valuation appeal is given for a period of 30 days from the date of 
receiving an Assessment Notice from the Customs.  Supporting Documents. 
 A copy of the Assessment Notice (Form Kor Sor Kor  114 or Form Kor Sor Kor  115);  
 A copy of the receipt for duty payment or guarantee, as applicable;  
 A copy of Customs entry and invoice;  
 A copy of the identification card of the person filing the appeal. In the case of the legal entity, 
the attached documents must include a certif ication from the Ministry of Commerce and a 
copy of the identification card of the managing director or director partner with the legal entity’s seal together with the signature of the authorized person signed on behalf of the legal 
entity. 
 Other relevant documents (if any) i.e. a sale contract, proforma invoice, a price list, a 
catalogue, etc. 
 
Decision on appeal 
Appeal Committee will read, hear and decide the dis pute subject to all relevant laws and regulations. 
Then their valuation ruling is made  and sent in writing to the importers. 
 Disagreement In the case of disagreement with the decision made  by the Appeal Committee on Customs Valuation, 
the appellant has the right to file the appeal to the court within 30 days from the date they are notified 
of the decision. 
 
(US) Does Thailand apply paragraph 2 of Decision 4.1 on the Valuation of Carrier Media Bearing 
Software for Data Processing Equipment, as well  as the Decision on the Treatment of Interest 
Charges in the Customs Value of Imported Goods? 
 
Answer 
No, Thailand doesn’t apply Decision 4.1, but we  only apply Decision 3.1 (see to detail in WTO 
document no. G/VAL/W/5/Rev.21, 28 April 2009) (Annex 2).  
 
(US) How has the Electronic Advance Ruling system affected the number of violations identified?  
How has this affected whether violations are resolved through settlement or through appeal? 
 
Answer 
At present, the electronic Advance Ruling System is being developed. It has not been implemented. 
So we do not know how it affected the number of viol ations identified yet. However we hope that 
when the Advance Ruling System is implemented in 2012 or 2013, the number of violations will 
decrease.  
(d) Rules of origin 
(ii) Tariffs 
(a) Applied MFN rates  
Paragraph 25:  Changes to statutory rates require legisl ative approval, while applied rates (or 
temporary/adjusted rates) may be modified by the Minister of Finance without Parliament's approval, subject to Cabinet consent;  the Minister, with the approval of the Cabinet, may also charge "special 
duty" for any goods at a rate not exceeding 50% of  the relevant rate in the Tariff Schedule.  
 WT/TPR/M/255/Add.1 
Page 30 
 
 
 
 
  (Mexico) What criteria are used to  determine whether a product is eligible for this "special duty"? 
 
Answer 
Thailand has no longer imposed "Special Duty" on import goods. 
 
Paragraph 26:  Thailand has a relatively complicated tariff structure with considerable numbers of 
duty-free tariff lines, ad valorem  tariffs, and non- ad valorem  duties, of which some are alternate duty 
rates (the higher of an ad valorem  rate and a specific duty) (Chart III.1).  It was not possible to 
calculate ad valorem  equivalents for a number of non- ad valorem  tariffs.  Therefore, any summary of 
average tariffs, variation of tariffs, or other data must be treated with caution. 
 
(Brazil) a) Could Thailand clarify whether the non-ad valorem duties it applies are concentrated in 
particular chapters of the HS Code  (industrial products or agricu ltural products, for example)? 
 Answer 
The customs tariff rates are listed in Part 2 of th e Customs Tariff Decree B.E. 2530 (1987). Duties are 
levied on either a specific or an ad-valorem basi s, whichever is the higher but not exceeding our WTO 
bound rates. There are only 7 tariff lines (1005.10.00, 1008.90.00, 2201.10.00, 2207.10.00, 
2207.20.11, 2207.20.19 and 2207.20.90) that have only specific rate. 
 
b) Does Thailand intend to reform and simplify its  tariff structure over the next years?  
 
Answer 
Nowadays, the General Rate of a pproximately 70% of all tariff lines has been reduced and the range 
has narrowed to that of targeting 4 rates for production processes, namely: a) 0% for inputs not produced locally; b) 1% for raw materials; c) 5% for semi-finished products; and 
d) 10% for finished products 
 
(b) MFN tariff bindings (c) Duty-free items (d) Non- ad valorem duties 
(e) Special duties (or import surcharges) 
(f) Tariff quotas (g) Tariff averages (h) Tariff dispersion (i) Tariff escalation (j) Tariff reduction and exemptions 
 
Board of Investment and other location-related provisions 
Duty exemptions for production in expor t processing zones and other special zones 
Bonded warehouse and other provisions for tariff refunds End-use provisions 
 
(iii) Other charges affecting imports  (a) Import licensing and prohibition Import prohibitions Import licensing (b) Import quotas 
(iv) Contingency measures  WT/TPR/M/255/Add.1 
 Page 31  
 
 
 
 
  (a) Safeguards 
Paragraph 35-37:  Paragraph 35 refers to a committee on Sa feguard Measures that has been made 
up of representatives from: the Ministries of Commerce, Finance, Foreign Affairs, Agriculture and Co-operatives, Industry and Labour; the Office of Consumer Protection Board; and seven experts 
appointed by the Government. Also, paragraph 37  indicates that the committee is responsible for 
making provisional and final determinations.  
 
(Canada) Could Thailand please indicate which depar tment has responsibility for ensuring that the 
Committee’s decisions are consis tent with the WTO Agreements? 
 Answer 
The decision made by the Committee mentioned above is on the ground and principle of the Safeguard Measures on Increased Imports Act B.E.2550 (2007) wh ich are in line with WTO Safeguard Agreement 
and that will ensure the consistency with all rights and obligations under such Agreement  
 
(EC) Could Thailand clarify what kind of evide nce is required to demonstrate that both the 
initiation of a safeguard investigation and the impos ition of safeguard measures are justified and do 
not unduly disrupt international trade flows?  
Answer 
To demonstrate that both initiation and imposition of  safeguard measure are justified, the Committee on 
Safeguards, in accordance with th e Thai safeguards Act and WTO Agr eement on Safeguards, determines 
that there is an evidence of an increase in imports resulting from the unforeseen  development and leading 
to cause or threaten to cause serious injury to do mestic industry, in which the Committee evaluates all 
relevant factors of an objective and quantifiable nature having a bearing on the situation of Thai’s domestic industry, in particular, as followed: 
 The rate and amount on the increase in imports of the product concerned 
 The share of the domestic market taken by the increased imports 
 Changes in the level of sales 
 Changes in the level of production 
 Changes in the level of productivity 
 Changes in the level of capacity utilization 
 Changes in the level of profits and losses  
 Changes in the level of employments 
 
Paragraph 39-40:  The Committee's final determination may impose a safeguard measure in the form 
of an additional duty, a quantitative restriction, or  another measure to reduce the volume of imported 
goods so that the domestic producer(s) of the like product can implement an adjustment plan.  The 
maximum period for the safeguard measure is four years, extendable if necessary to a total of ten 
years.  
As of end-April 2011, Thailand had notified the Committee on Safeguards that it had applied 
provisional safeguard duties to imports of gl ass blocks (HS 7016 9000) from 15 January 2011. 
 
(EU) Thailand cumulated an anti-dumping duty and a safeguard duty against imports of glass blocks 
from one EU exporting country. Th e safeguard measure imposed in or der to remove the serious injury 
suffered by the domestic industry inevitably removes at the same time the low er level of injury (the 
material injury) caused by the dumped imports of the same product. Given that measures can only be 
applied to the extent necessary to  remove the injury suffered by a domestic industry, how can 
Thailand justify double remedy und er WTO rules in such a case?  
 WT/TPR/M/255/Add.1 
Page 32 
 
 
 
 
  Answer 
The safeguard investigation had proceeded in conformity with WTO Safeguards Agreement. As the 
article 2.1 demands the authority to consider the increased quantities under such conditions as to cause 
serious injury to domestic industry; and article 4.2 re quired the authority to consider all relevant factors 
and the causal link. In this analysis, the effect of  anti-dumping duties had been taken into account and 
found that even though the domestic industry has been  remedies its injury from  the unfair practice by 
anti-dumping measure, the domestic indus try is still facing serious injury  caused by abso lute increase of 
imports which is irrespective of origins.   
(b) Anti-dumping and countervailing measures 
 
Paragraph 42:  Paragraph 42 outlines the process by which anti-dumping and countervailing duty 
investigation may be initiated by the Committee on Dumping and Subsidies or the Department of 
Foreign Trade.  
 
(Canada)  Could Thailand please provide the criteria and factors that the Committee or the Department considers in deciding whether to  initiate an anti-dumping or a countervailing 
investigation on its own accord? 
 Answer 
The Committee or the Department will examine the accuracy  and adequacy of the ev idence provided in the 
complaint to determine whether there is sufficient evidence to justify the initiation of an investigation. The application shall be properly docume nted which include evidence of dumping or subsidies, injury and the 
causal link between the dumped, subs idized imports and injury to the domestic industry as the criteria 
required in article 5.2 of Anti-dumping Agreement. 
 
Paragraph 43:  Paragraph 43 refers to the composition of the Committee on Dumping and 
Subsidies.  
 
(Canada)  Could Thailand please explain which de partments are present on the Committee and which 
department is responsible for ensuring that the Co mmittee’s decisions are consistent with the WTO 
Agreements?  
Answer As stated in Article 71 of Thai Anti-dumping and Countervailing Act B.E 2542 (1999), the Committee on 
Anti-dumping and Subsidies is composed of represent atives from the Ministry of  Commerce, the Ministry 
of Finance, the Ministry of Foreign Affairs, the Mini stry of Agriculture and Coop eratives, the Ministry of 
Industry, the Board of Investment and the Office of the Consumer Protection Board and various experts with experiences in the areas of economy, law, agri culture, accounting, industry and international trade. 
The Department of Foreign Trade is directly responsi ble for entire investigatio n proceeding. All decisions 
made by such Committee on Anti-dumping and Subsidies are on the ground and principle of Thai Anti-dumping and Countervailing Act B.E.2542 (1999) which are in line with WTO Agreement on anti-
dumping and countervailing duty and that will ensure th e consistency with all rights and obligations under 
WTO Agreement. 
 
(Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu) Does Thailand have plans to 
provide all relevant information in English to all the relevant parties in the future?  Answer 
Anti-dumping proceed ing of Thailand is set out to best comply with all rights and obligations under WTO 
Agreement even though the point of transl ation is absent from such agreement.  WT/TPR/M/255/Add.1 
 Page 33  
 
 
 
 
  With the best comply, the English version of initiation of an Anti-dumping and subsidies investigations 
and disclosure of relevant confidential and non-confidential information are sent to each known exporter or 
their representatives.  Similar to those Members which English is not official language, the Thai Anti-dumping and Countervailing Act requires domestic industries to officially file petition or submit their response in Thai 
version. The petitioner’s compliant is attached to the notification of the initiation. Thailand provides 
reasonable period of time to all interested parties to  express their view on the in itiation and also on the 
result of the investigation. An extension is normally granted by our investigating authority upon request of interested parties.    Paragraph 45:  According to the secretariat report, Thailand has not notified the WTO Committee 
on Subsidies and Countervailing Measures of the initia tion of any investigation or application of any 
countervailing duty measures  
 
(Indonesia) Could Thailand kindly elaborate furth er on any difficulty to notify to the WTO Committee 
on Subsidies and Countervailing Measures of the initiatio n of any investigation or  application of any 
countervailing duty measures? 
 Answer 
To elaborate more on the point of notification to the initiation of such case to the WTO Committee 
on Subsidies and Countervailing M easures, Thailand, as the matter of fact, has never initiated or 
imposed any Subsidies and Countervailing measures.  
 Import licensing Import prohibition 
 
(v) Non-tariff border measures  
 
Import licensing and prohibitions 
 
(US) Table III.3, "Products subject to impor t licensing and prohibition, 2011," identifies several 
products subject to import measures with an a ccompanying rationale incl uding "encourage and 
protect domestic industry."  Please explain Thailand’s use of such measures fo r this purpose in light 
of its WTO obligations.   Answer 
In the past, there were some complaints that the importation of marble, worked monumental or 
building stone, which was subjected to non-automa tic import licensing, was generally restrictive. 
However, in 2008, the Ministry of Commerce has rec tified the concerns by issuing the Notification of 
the Ministry of Commerce on the import of Stone, dated 16 June B.E. 2551 to eliminate this restriction. At present, only the importation of marble (HS. 25.15 except HS. 2515.12.10), marble, 
travertine, alabaster (HS. 6802.21.00), Gran ite (HS. 6802.23.00) and other building stone 
(HS. 6802.29.00) is required to apply for a non- automatic import license from the Department of 
Foreign Trade in order to administer the import and the use of marble and building stone. 
 
Paragraph 47   (India) Can Thailand be pleased to justify the above actions? Whether these actions are not in 
violation of Article XI of GATT 1994 an d Agreement on Import Licensing Procedures? 
 WT/TPR/M/255/Add.1 
Page 34 
 
 
 
 
  Answer 
According to Section 5 of the Export and Import of Goods Act, B.E. 2522 (1979), the Minister of 
Commerce with the approval of the Cabinet has an  authority to publish the notification in the 
Government Gazette to ban, to require for the permission, to prescribe any categories / kinds / 
qualities / standards / quantities / brands / origins / special fees, etc., of any import and export goods 
in any cases where it is necessary for economic stab ility, public health, national security, peace and 
order, good morals of any other interests of the state. These actions are not in violation of Article XI 
of GATT 1994 and Agreement on Import Licensing Procedures.  
Answer by BOI  
Under the Investment Promotion Act, Section 49, BO I is granted the right by law to impose surcharge 
on products or like products of a certain industry, this Section is not in force.    
 
Paragraph 48:  According to the Secretariat’s report, "P roducts subject to non-automatic licensing 
currently include the 24 agricultural items under tariff quota (section (ii)(f)) and processed goods (including certain fishmeal, raw silk, used diesel engines, certain buses, chainsaws, marble, plastic 
wastes, and certain antiques or objects of art) (Table III.3).  An automatic import licensing system 
currently applies to certain garments (i.e. unfin ished garments, parts or components except collars, 
cuffs, waist bands, pockets , and cuffs for trousers), intaglio printing machines, and colour 
photocopying machines.  Product coverage can be changed through Ministry of Commerce 
notifications."  
 
(EC) Could Thailand describe in more detail the pro cedure to be followed in order to apply for a non-
automatic license, and the time period in wh ich such a licence is generally granted? 
 Answer 
An importer shall apply for a non-automatic license  from the Department of Foreign Trade (DFT) 
before the customs clearance. The complete app lication form and the required documents will be 
approved by the Director General of the DFT or the Minister of Commerce within 1 - 20 working 
days. The importer could proceed to import after all requirements are met and the certificate is granted.   
(EC) According to exporters, MOC only authorises imports on a case by case basis for specific 
construction projects, and the quantity  is limited to the material to be  used in those projects. Does 
Thailand plan to eliminate this  restriction and when? What is the reason for maintaining non-
automatic import licensing for marble (HS 2515)  and worked monumental stone (HS 6802) in 
Thailand? Under which circumstances is the Minist ry of Commerce (MOC) granting the licenses?  
 Answer 
In the past, there were some complaints that the importation of marble, worked monumental or 
building stone, which was subjected to non-automa tic import licensing, was generally restrictive. 
However, in 2008, the Ministry of Commerce has rec tified the concerns by issuing the Notification of 
the Ministry of Commerce on the importation of Stone,  dated 16 June B.E. 2551 (2008) to eliminate 
this restriction. At present, only the importation of marble (HS. 25.15 except HS. 2515.12.10), marble, 
travertine, alabaster (HS. 6802.21.00), Gran ite (HS. 6802.23.00) and other building stone 
(HS. 6802.29.00) is required to apply for a non- automatic import license from the Department of 
Foreign Trade in order to administer the import and the use of marble and building stone. The 
complete application form and the required documen ts will be approved by the Director General of 
the DFT or the Minister of Commerce.     WT/TPR/M/255/Add.1 
 Page 35  
 
 
 
 
  Paragraph 50  
 
Import prohibitions  
In general, import prohibitions are used only to  protect public morals, national security, human, 
animal, or plant life, health, and intellectual pr operty rights, in accordance with GATT Article XX 
exceptions.  Products that are absolutely prohibite d include counterfeit goods and equipment for their 
manufacture, used motorcycle engines, game machines (coin or disc operated), and household 
refrigerators using CFC in the production process  (Table III.3).  Imports of a wide range of 
endangered fish, molluscs, amphibians, and coral are banned under the Convention on International 
Trade in Endangered Species of Wild Fauna and Flora (CITES).3 
 
(US) What laws and enforcement processes has Tha iland implemented to stop the illegal importation 
of counterfeit goods and equipment for their manuf acture?  What have been the results and how have 
they been measured?  Answer 
Import and export of counterfeit goods is absolutely  prohibited according to the Notification of the 
Ministry of Commerce on the export and import of  goods, dated 14 October B.E. 2530 (1987). 
 
(vi) Technical measures 
 
(New Zealand) To what extent are the Thai national standards based on international standards? 
 Answer 
Thailand has been actively participating in the deve lopment of international standards and has been 
using international standards as a basis in  the preparation of national standards. 
 
Paragraph 54:  WTO Secretariat Report had indicated that Thai Industrial Standards Institute (TISI) 
is responsible for developing nationa l standards, certification, monitoring the quality of products and 
services in collaboration with bilateral and multila teral agencies for establishing a national single 
network on standardization. For th e above Thailand had entered into many bilateral agreements with 
various countries. Most of the above agreem ents got expired during the review period.  
 
(India) Can Thailand be pleased to specify  whether it intends to revive these agreements? 
 Answer 
According to the MoU with the Bureau of Indian Standards (BIS) expired on 10 April 2010 and is not 
renewed because of we have not received any response from BIS. 
 
Paragraph 55:  The Secretariat Report indicates that Thailand has signed the Pacific Accreditation 
Cooperation (PAC), International Accreditation Foru m (IAF), Asia Pacific Laboratory Accreditation 
Cooperation (APLAC), and In ternational Laboratory Accreditation Cooperation 
(ILAC) multilateral recognition arrangements.  
 
(Canada) Could Thailand please indicate if regulatory authorities recognize laboratories or 
certification bodies accredited by signatories to APLAC, ILAC, PAC and IAF?  
 
                                                      
3 WTO (2008);  and Economist Intelligence Unit (2010), p. 92. WT/TPR/M/255/Add.1 
Page 36 
 
 
 
 
  Answer 
(1) Office of the National Accreditation Council (NAC), Ministry of Industry 
(2) National Bureau of Agricultural Commodity and Food Standards (ACFS), Ministry of  Agricultural and Cooperatives (3) Department of Science Service (DSS) , Ministry of Science and Technology 
(4) Department of Medical Sciences (DMSc), Ministry of Public Health  (Canada)  Could Thailand please provide informati on with respect to what progress it is making 
toward implementation of the ASEAN Medical Device Directive? 
 (EC) Does Thailand intend to extend its partici pation in the APEC EEE MRA also to mutual 
acceptance of test reports?  
 
Answer 
ASEAN members are in process of making draft the A SEAN Medical Device Directive and reach target 
within April 2012.  After that, ASEAN members will propose national consultation prior to approving the 
final draft.  
Paragraph 56:  The WTO enquiry point for technical regula tions relating to indus trial products is 
the TISI, and for food and agricultural products it is  the National Bureau of Agricultural Commodity 
and Food Standards (ACFS).  Thailand has accepted the Code of Good Practice for the Preparation, 
Adoption and Application of Standards in Annex 3 of the TBT Agreement. From 1 January 2007 to 
31 May 2011, Thailand made 189 not ifications to the WTO Committee on Technical Barriers to 
Trade (including addenda and corrigenda) with an  additional 11 by the EU giving unofficial 
translations of the details of some notifications by Thailand.  Most of the notifications were for 
measures to address safety or environmental protection.  Thailand is an active member of the TBT Committee.  Since 1 January 2007, along with other Members, it has raised concerns about measures 
taken by the EU on: proposed measures affecting the fire performance of construction materials;  the 
registration, evaluation and authorization of chemic als (REACH);  dangerous chemical substances;  
the classification, labelling, and packaging of s ubstances and mixtures;  accreditation and market 
surveillance relating to the marketing of products;  as well as measures by Brazil on toys.  Thailand 
has also replied to other Members' concerns on sev eral issues, including:  labelling requirements for 
snack food; mandatory certification of steel produc ts; and health warnings on alcoholic beverages.  
 
(Australia) We note that reference  to "health warnings on alcoholic  beverages".  We would welcome 
an update on the Thai government’s considera tion of the proposed labelling measures.  
 (EC) Could Thailand report on the current status of the proposed health warnings regulation on 
alcoholic beverages?   
 
Answer 
The National Alcoholic Beverage Policy Committe e has appointed a subcommittee to study the 
impact of health risks and potential dangers the draf t notification (pictorial warning label on alcoholic 
beverages). 
 
(Chile) Thailand notified a proposed regulation that would require alcohol beverage labels to include 
warning statements and photo images. Pictures of disea sed livers, a bloody traffic accident, a suicide, 
and a man hitting his wife have been proposed, along with text such as, "Alcohol consumption could 
harm you, your children and your family." At leas t 50 % of one side of square shaped packaging, or 
30 % of round or cylindrical shape d packages, must be allocated for the warning statements and 
images.  WT/TPR/M/255/Add.1 
 Page 37  
 
 
 
 
  The overseas manufacturers will be required to print the warnings on all bottles they export for sale 
in Thailand, which adds to production costs. We believe that the policy act as a barrier to 
international trade. Please clarify on this point.  
 
(New Zealand) The Secretariat report (page 63) notes that concerns about Thailand’s proposed 
regulations on health warnings on alcoholic b everages have been raised by Members in the WTO 
TBT Committee.  New Zealand supports Thailand’s  right to regulate alcohol to address alcohol 
related harm.  However, we are concerned that the proposed new labelling requirements are 
unnecessarily trade restrictive and that alternative, less trade-restrictive approaches are available to 
achieve the same objective. New Zealand underst ands that Thailand is currently undertaking 
consideration of the review of the measure taking into account the c oncerns raised by WTO members.  
How advanced is this review process and when will it be concluded? 
 
Answer 
The National Alcoholic Beverage Policy Committe e has appointed a subcommittee to study the 
impact of health risks and potential dangers the draf t notification (pictorial warning label on alcoholic 
beverages). However, we also renowned experts that have no conflict of interest to ensure that our 
alcohol policy and measures are formulated based on reliable scientific evidence. Therefore, please 
rest assure that Thailand’s polic y and measures will be non trade restrictive and devised from pure 
public health interest and we will strictly follow trade rule.   Paragraph 57:  The Secretariat Report indicates that produc ts subject to compulsory standards are 
required to comply with the standard a nd show the mandatory certification mark.  
 Answer  
None.  
 
(Canada) Could Thailand please indicate what are the requirements and criteria for the recognition 
of foreign certification bodies?  
 Answer 
None. 
 
(Canada) Are the requirements and criteria for recogn ition of foreign certification bodies the same as 
those that apply to domestic bodies?   Answer 
None.  
 
Paragraph 58:  The Secretariat’s report states that "In developing standards and technical 
regulations, the TISI works with other government  agencies and private-sector organisations. […] A 
technical committee, made up of the responsible nati onal standards body and othe r interested parties, 
develops a draft standard, which is then circulat ed for comment with final approval by Industrial 
Products Standards Council. The comments of other countries are taken into account through the 
WTO TBT Committee notification and comment procedures./…/"  
 
(EC) Could Thailand provide more information on its procedures for consulting stakeholders when 
developing standards and technical regulations?   Answer 
The following steps shall be taken: WT/TPR/M/255/Add.1 
Page 38 
 
 
 
 
  (1) TISI, shall publish, in the Government Gazette and at least in one Thai daily newspaper for a 
period of not less than seven days, an annou ncement stating the intention requiring any 
particular kind of industrial products to be ma nufactured in conformity with a standard, the 
place where the particulars and available and the period for a person wishing to protest to submit his protest to the Institute, which is not less than thirty days from the date of the publication; 
(2) if no protest is received, the Institute shall re port to the council, and in such case, the Council 
shall proceed further; 
(3) in the case where a protest is received, the Ins titute shall refer the protest to the Council; 
(4) the Institute shall post a notice at the Institu te specifying the date, time and place where an 
hearing of the protest will be held and inform the protestant of it in writing; 
(5) the council shall avail itself of the opportunity for all persons interested to  attend and give their 
opinion in the hearing; 
(6) if the protestant does not show up within the speci fied time, the Council shall have the power to 
proceed as it deems fit; 
(7) When a decision has been made by the Council, th e Institute shall post a copy of the decision at 
the Institute and send one copy  thereof to the protestant. 
 (EC) Could Thailand please expand further on the tools that it uses in order to ensure that its standards, technical regulations and conformity assessment procedures are proportionate to the 
legitimate objectives pursued? For instance, does T hailand undertake systematic public consultations, 
impact assessments or ex-post eval uation of adopted legislation? 
 
Answer We have been ensuring that standards, technical regulations and conformity   assessment procedures 
are proportionate to the legitimate objectives, as follows: 
 Setting priority for standards to  be developed according to the demand and the need of users. 
 Appointment of technical committees comprising 3 parties, i.e. producers, consumers and 
academics so that the standard to be developed complies with the capability of the producers, in 
line with the need of the users and technically correct. 
 Drafting of national standard can be carried  out by preparing a new draft or adopting 
international standard as a national standard. 
 The draft standards will be circulated to releva nt organizations for comments or by holding a 
seminar to inform the stakeholders of the new standard to be devel oped and to give them 
opportunity to comment. 
 Meeting of technical committee will be held to  consider the draft standard and to obtain 
consensus on the draft standard. 
 The draft standards will be considered by  the editing committee for appropriateness and 
consistency with other standards prior to its submission for approval of the Industrial Product 
Standards Council. 
 The approved standard will be signed by the Minist er of Industry before its publication in the 
Royal Gazette. 
 Paragraph 59:  The Secretariat Report indicates that producers and importers of products subject to 
mandatory standards require a licence to indicate co mpliance with the standard and sell the product in 
Thailand.  
 
(Canada) Does Thailand require the product to be tested before granting a license to the producer or 
importer?   WT/TPR/M/255/Add.1 
 Page 39  
 
 
 
 
  Answer 
Import and sale of all products subject to compulsory  standards in Thailand need to get prior approval 
or license from TISI.  The current process can be found on http://www.tisi.go.th/eng/index. php?option=com_content &vie w=article&id=12&Itemid=10. 
 
(Canada)  If so, can a foreign manufacturer test the pr oduct in its country of origin, or must he ship 
the product for testing in Thailand? 
 Answer 
Foreign manufactured products must be shipped for testing in Thailand, except when there is a special 
international  agreement.  
 
(Canada) Could Thailand please provide a list of foreign testing laboratories recognized by 
Thailand?   Answer 
None except when there is a special international  agreement, we do not recognize foreign testing 
laboratories.  
 
(Canada) Can foreign producers obtain a license from TISI?  Answer 
TISI does not operate overseas certification or receive application from overseas.  Therefore, application for by TISI’s certification must be made  in Thailand, and by a person or juristic person 
registered in Thailand. 
 
(Canada)  If so, could Thailand please confirm whether the process and applicable fees for foreign 
manufacturers are the same as those applic able to domestic manufacturers? If not, 
could Thailand please explain the differences?  
 Answer:  - 
 (EC) Could Thailand please provide a list of pr oducts subject to mandat ory standards (and hence 
require a licence to be placed on the market)? 
 Answer 
See website at: http://app.tisi.go.th/standard/comp_eng.html. 
 
(EC) The EU also notes that, acco rding to the Secretariat's report,  over half of compulsory standards 
are for construction products and electrical and el ectronic products. The EU understands from this 
that electrical and electronic products also require a licence to be placed on the product on the market. Could Thailand please provide more info rmation on the procedure to import electronic 
products into Thailand? Could Thailand clarify wh ether tests from foreign l aboratories accredited by 
a body member of the International Labora tory Accreditation Cooperation (ILAC) or the 
International Accreditation Forum (IAF) or, in the case of electronics, test reports under the IECEE 
CB scheme are accepted? Why doe s Thailand consider that such  burdensome procedures (i.e. 
mandatory standards, licensing and testing / certification by the TISI) are necessary in the case of 
low-risk products such as electrical and electr onic products? Has Thailand considered simplifying 
this system, or replacing it with a more trade-friendly one, such as self-declarat ion of conformity by 
the manufacturer?  
 WT/TPR/M/255/Add.1 
Page 40 
 
 
 
 
  Answer 
 The procedure to import electronic products into Thailand is as on 
http://www.tisi.go.th/eng/index.ph p?option=com_content&view= article&id=12&Itemid=10.  
 TISI accepted test reports under the IECEE CB scheme.  
 
(EC) What is the average period of time need ed to obtain compulsory and voluntary licenses?   
 
Answer 
The processes of compulsory and voluntary licenses are not exceeding 43 days that time period is not 
included in the total.    
 
(India) The Thailand is requested to explain the reason for this long delay of 42 days before a licence is delivered. Thailand is also requested to prov ide information regarding any concessions that are 
being provided for small and medium enterprises.    
 Answer 
Mostly,  the approval process is delayed  because transmissions delay of the test sample; factory is not 
ready  for the inspection; including in case of sample does not pass inspection or factory does not pass  
any inspection. 
Remark: Please correct the information are as follows: 
(1) Rate of fee for licence 3,000 Baht each. 
(2) Rate of fee for factory inspection 3,00 0 Baht per day (not exceed 3 days). 
(3) Although manufacturers have been awarded ISO 9000 certification, they could not exempt 
factory inspection. 
 Sanitary and phytosanitary measures  
Paragraph 64:  The FDA in Thailand is responsible for su rveillance of food pr oduction and imports, 
pre- and post-marketing control, research, and labe lling, as well as food safety.  New regulations are 
based on an analysis of the risk assessment, ri sk management, and risk communication.  Draft 
regulations are subject to a public hearing and ar e notified to the SPS Committee in the WTO before 
being approved by the Food Committee on the FDA, which includes consumer and industry 
representatives.  The regulations must be endorsed by  the Minister of Public Health before becoming 
effective.
4 
 
(US) The Secretariat report states that the Thai FDA is responsible for food safety through risk 
assessments.  Has the Thai FDA conducted sa fety assessments on ractopamine and magnesium 
silicate? What were the results? If no safety risks were found, are proposed regulations being drafted 
for the use of these products?  
Answer 
For Magnesium silicate, this food additive is permi tted to use as anticaking in the Notification of 
Ministry of Public Health No.281 (B.E. 2547) Re : Food Additive. This provision complies with the 
Codex Standard: General Standard for Food Additives (GSFA). But the use of Ractopamine is still in 
the consideration process of Codex co mmittee on Veterinary Drug Residues. 
 
                                                      
4 Presentation by Dr Parinyasiri, T (2010), Thai FDA Regulation on Food.  Viewed at:  
http://www.anchanthailand.com/asp /view_doc.asp?DocCID=2599.  WT/TPR/M/255/Add.1 
 Page 41  
 
 
 
 
  Paragraph 66:  There have been no changes to Thailand' s legislative framework for SPS measures.  
Under the Food Act B.E. 2522 (1979) , food products are classified into four groups, in descending 
order of risk, with different requirements for re gistration, labelling, and obligatory standards. 
 
(US) The Secretariat Report states that Thailand’ s Food Act B.E. 2522 (1979) classifies food products 
into "four groups, in descending order of risk, with  different requirements for registration, labelling, 
and obligatory standards".  Could Thailand please 
 provide the scientific rationale used for each of  the four food categories and explain how they 
meet Thailand’s appropriate level of protection;   
 explain the criteria used in det ermining whether or not these food products are no risk, low risk, 
controlled risk, or high risk;  
 provide a list of the products covered  under Groups 1, 2, 3, and 4; and, 
 confirm if the requirements for each food gr ouping apply to both domestic and imported food 
products. 
Paragraph 66 also notes that Th ailand’s unofficial English transla tion of its different requirements 
for registration, labelling and obligatory sta ndards could be found at this website:   
(http://www2.fda.moph.go.th/exporters/frm_fd_eng.asp [March 2011).  However, when we visited this 
website, it stated that the "page could not be found. "  How, then, can we access this unofficial English 
translation so that we may review it and offer comments as appropriate?     
 
Answer  
Under Thailand’s Food Act of B.E.2522 (1979), four t ypes of food are categorized by the criteria as 
follows.  1. Specific Controlled Food is categorized as a high ri sk food product that shall be strictly monitored 
and controlled because of the reasons as follows:  
 This food category is classified as adversely high risk  for consumer health and may also impact to 
human health. Food products in this category are food in sealed containers such as law acid 
canned food, weight-control food and foods for vu lnerable consumer groups, especially infants, 
such as modified milk for infant and modified m ilk of follow up formula for infant and children, 
food for infant and food of follow up formula fo r infant and small children, and supplementary 
food for infant and young children  
 Food products that may be hazardous for cons umption resulting from uncontrolled process such 
as cow’s milk, flavoured milk, yoghurt, ice-cream , food in sealed containers, and other milk 
products. 
 Food products that still incessantly have problem  on standard and quality such as beverages 
 Food/ food additives which are combined with other ingredients that may have a problem to other 
food products if the standard and quality is uncontrolled such as food additives. 
 There are 14 types of food in this category (see Annex I) 
 
2. Prescribed Food to have Quality or Standard is categorized as medium risk food product according 
to type of hazards, characteristic of food and c ontrolled process. The quality and safety requirements 
are prescribed for these foods. There are 34 type of food in this category (see Annex I). 
 3. Prescribed Food to have Label is categorized as low risk food product according to type of hazards, 
characteristic of food, controlled process The safety requirements such as Good Manufacturing 
Practice, Contaminants, Food Additives and labelling are required for this food category. There are 11 
types of food in this category (see Annex I).  
 WT/TPR/M/255/Add.1 
Page 42 
 
 
 
 
  4. General Food is the food other than 3 food categories mentioned above but its safety shall comply 
with safety requirements such as Good Manufacturing Practice, Contaminants, Food Additives and 
Labelling. Example for General Food are flour, sugar etc.  According to determination of food categories, Sp ecific Controlled Food requires product registration, 
food producers and importers shall apply for produc t registration. Whereas Prescribed Food to have 
Quality or Standard and Prescribed Food to have  Label require product notification process, food 
producers and importers shall apply notification process.  Thailand’s unofficial English Transl ation could be found at website: 
http://newsser.fda.moph.go.th/fo od/English_Version_Index.php. 
 
Paragraph 67:  Thailand prohibits imports of several f ood products on health grounds.  The list 
includes foods containing several additives, includi ng some sweeteners, along with puffer fish, and 
some types of genetically modified maize.   
 
(US) The Secretariat Report states that based on he alth grounds, Thailand  prohibits imports of 
several food products, including "foods containing several additives,... some sweeteners…. and some 
types of genetically modified maize".  Could Thailand please 
 provide the scientific rationale used for prohibiti ng the import of several food products for health 
reasons;   
 explain how such prohibition is consistent with international standards like Codex Alimentarius; 
and, 
 provide a list of these prohib ited food products imports. 
Are domestic producers prohibited from produc ing these prohibited products for domestic 
consumption and exports? 
 Answer  
Food product which is prohibited to produce, im port or sale is adulterated food according to 
Thailand’s regulation under Food Act B.E.2522 ( 1979). The adulterated food products can be 
classified as follows: 
 
 Food products which do not meet quality and saf ety requirements. For example food products 
that contain food additives exceed than limit of  use under Notification of Ministry of Public 
Health No. 281 (B.E.2547) Re: Food Additives, or food products that contain filth due to unhygienic practice. 
 Food products which contain pr ohibited substances that can be harmful to human health 
according to the scientific data. The lists of  prohibited substances under Notification of 
Ministry of Public Health No. 151 (B.E. 2538)  Re: Prohibited are brominated vegetable oil, 
salicylic acid, boric acid, borax, calcium iodate and potassium iodate, nitrofurazone, 
potassium chlorate, formaldehyde, coumar in or 1,2-benzopyrone or 5,6-benzo- δ-pyrone or 
cis-o-coumaric acid anhydride or o-hydroxyci nnamic acid, lactone, dihydrocoumarin, methyl 
alcohol except for use as processing aid and dietahylene glycol. 
  WT/TPR/M/255/Add.1 
 Page 43  
 
 
 
 
  Food Products which are prohibited to pro duce, import or sale are listed as follows: 
Notification List of food products wh ich are prohibited to produce, import 
or sale 
Notification of Ministry of Pub lic Health No. 292 Re: Prohibited 
Food to produce, import or sale  The lists of Prohibited Food to produce, import or sale are as 
follows:  - Dulcin  - Cyclamic acid and its salts 
 - AF
2 or Furylframide 
 - Potassium bromate used as food additives  - Food containing Dulcin, AF
2, Potassium bromated, 
cyclamic     acid and its salt except sodium cyclamate for the 
purpose of    exportation only 
 - Food containing daminocide or succinic acid 2,2- 
   dimethylhydrazide 
 - Crude extract of Stevia Rebaudiana Bertoni and its purified     extract other than steviocide except for the purpose of 
exportation     only. 
Notification List of food products wh ich are prohibited to produce, import 
or sale 
Notification of Ministry of Public Health No. 215, 215, 246 Re: Prohibited Food to produce, import or sale  Since 2001, StarLink Maize which approved for animal feed was 
contaminated in food chain in USA. Thailand issued this provision to prohibit importation or sale  of Starlink Maize and food 
containing Starlink Maize. Th is provision is under review 
according to the new information from US-EPA and US-FDA 
Notification of Ministry of Pub lic Health No. 263 Re: Prohibited 
Food to produce, import or sale 
 Mini-cup Jelly containing Konjack flour or glucomannan filled in 
packaging which has diameter less than 4.5 cm is prohibited to 
produce, import or sale. 
Notification of Ministry of Pub lic Health No. 264 Re: Prohibited 
Food to produce, import or sale 
 Puffer fish and food containing puffer fish which may contain 
Tetrodotoxin, is prohibited to produce, import or sale. 
Notification of Ministry of Public Health No. 268, 269 Re: 
Prohibited Food to produce, import or sale 
 Food containing some chemicals which are  prohibited  to pr oduce, 
import or sale are listed as follows 
  - chloramphenicol and its salts 
  - Nitrofurazone and its salts   - Nitrofurantoin and its salts 
  - Furazolidone and its salts 
  - Furaltadone and its salts   - Malachite green and its salts 
  - Beta-agonist 
Including their metabolites. 
Notification of Ministry of Pub lic Health No. 311 Re: Prohibited 
Food to produce, import or sale 
 Food containing melamine and its analogues is prohibited to 
produce, import or sale. This provision is under review to comply 
with General Standard for Contaminant in Food and Feed. 
Notification of Ministry of Pub lic Health No. 113 Re: Cyclamate 
and Food containing cyclamate 
 Cyclamate and Food containing cy clamate except for exportation 
is prohibited to produce, import or sale. This provision is under 
review to comply to GSFA 
 
Paragraph 68  
 
(US) What is the difference between the manufactu ring license and the import license?  What is the 
purpose of each of the licenses?  Answer 
The domestic manufactures shall apply for ma nufacturing license whereas the domestic food 
importers shall apply for Import license. This proced ure aim to register dom estic food manufactures 
and food Importers under clause 14 and 15 of Food Act BE 2522 (1979).  
Paragraph 71 
 
(US) According to the Secretariat, "... food produc ts claiming to have nutritional benefits and some 
snack food products are required to carry a label w ith information on nutrition."  With regard to WT/TPR/M/255/Add.1 
Page 44 
 
 
 
 
  snack foods, has Thailand imposed additional fo od labelling requirements beyond the stated 
requirements? 
 Answer 
In Thailand the label of food shall comply with labelling requirement under Notification of Ministry 
of Public Health No. 194 / 2543(2000) Re: labels. It  needs general information such as name of food, 
food serial number, name and address, net content etc.  If food products need to show nutrition claim, 
it shall be complied with Notification of Ministry of Public Health No. 182/ 2541(1998) Re: Nutrition 
labelling. For some snack food product shall require to  label comply with Notification of Ministry of 
Public Health. 305/2550(2007) Re : Labelling of Some Snacks Food. No other additional food 
labelling is required. 
 
(US) Please explain the purpose of the GMO labelli ng.  We take note that this issue is addressed in 
the SPS section of the Secretariat Report.  Is there a food safety reason for the label? If so, please 
explain the science basis for requiring such a label.  Answer 
The purpose of the GMO labelling under Notificati on of Ministry of Public Health No.251 
/2543(2000) Re: Labelling of Food obtained through certain techniques of genetic 
modification/genetic engineering, is to give c onsumer’s right to receive information.     
 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation procedures 
(ii) Export taxes, charges, and levies  
Paragraph 77 
 
The Secretariat’s report states that "Under the Cu stoms Act B.E, 2469 (1926) and the Customs Tariff 
Decree B.E. 2530 (1987), export taxes may be levied on a number of products, including hides of 
bovine animals, wood, rice, metal scrap, rubber, raw s ilk and silk yarn, and certain fish (Table III.4). 
Export duties consist of statutory rates and applie d rates; applied rates involve both specific and ad 
valorem duties. In January 2011, specific export duties we re levied on certain by-products of animal 
hides, while certain wood and sawn wood products were subject to ad valorem export duties. 
Although applied rates tend to be lower than statutor y rates, the persistence of  relatively high statutory 
rates on key export products (e.g. rice and rubber), imparts an element of uncertainty in Thailand's 
trade regime, as export taxes could be reintroduced up to the level of the statutory rate. Furthermore, 
the imposition of export taxes could constitute a form of assistance to domestic downstream industries and, if they were applied to pr oducts Thailand is a major supplie r of, could exacerbate world price 
fluctuations." 
 
(Korea) Thailand is levying export taxes on several products including unpr ocessed wood. Although 
export duties can be a useful tool to pursue va rious policy goals, they can also result in adverse 
effects such as inefficiency in resource alloca tion and distortions of economic agents' incentives. 
What are the main policy objectives that the T hai Government is pursuing by imposing the export 
taxes? Could Thailand provide its cos t/benefit estimates of imposing them? 
 Answer 
Thailand's trade policies have been geared toward s promoting exports by limiting export control to a 
minimum and most products can be exported freely. Th e Export duty is imposed on only two products 
namely, raw hides and wood in order to disc ourage overproduction in order to protect the 
environment and natural resources.  WT/TPR/M/255/Add.1 
 Page 45  
 
 
 
 
  (iii) Export prohibitions, restrictions, and licensing 
 
Paragraph 80:  The Secretariat’s report indicates that Thailand prohibits the exportation of 
counterfeit products and products  that infringe copyrights.  
 
(EC) Could Thailand please describe the export pr ohibition of counterfeit products, (i) whether it 
covers all intellectual property rights infringing go ods and, (ii) clarify whether it applies only to 
goods manufactured in Thailand or also applies to counterfeit goods in transit? 
 Answer 
Export prohibition of counterfeit products covers all intellectual property rights infringing goods and 
it applies to both goods manufactured in Th ailand and counterfeit goods in transit.  
Paragraph 82 
The Secretariat’s report shows that the rationale fo r export licensing of fresh orchids exported to the 
EU is "According to bilateral agreement".  
 
(EC) Could Thailand clarify which bilat eral agreement that is being referred to?  
 
Answer 
No export licensing is required for the exportation of fresh orchid to the EU. An exporter is only 
required to apply for the "Phytosanitary Certificate"  from the Department of Agriculture, Ministry of 
Agriculture and Cooperatives before exporting fresh orch ids to the EU in order to comply with the EU 
regulation. 
 
(iv) Export assistance and incentives  
Paragraph 89 : Investors in an I-EA-T Free Zone are entitled to a number of tax and non-tax 
privileges.  Tax privileges include exemptions from import duty, VAT, and excise tax on factory 
construction materials, machinery, equipment, components, and raw mate rials necessary for the 
production of goods or for commercial purposes, as we ll as exemption from export duties and taxes.  
No export requirements are imposed as a condition to  obtain these benefits.  Non-tax privileges for I-
EA-T Free Zone investors include the right to ow n land for their business operations, bring in foreign 
technicians and experts and their dependants, pe rmission to remit foreign currencies, and the 
eligibility to bring supplies or raw materials for production into an I-EA-T Free Zone, without being 
subject to import permits, standard  and quality controls, or any other control except for those under 
the Customs Act.
5  The 2007 IEAT Act provides tax burden relief for goods from the I-EA-T Free 
Zones sold to the local market; the raw materi als and components are entitled to tax and duty 
exemptions if they are produced locally.  
 
(US) paragraph 89 explains that the Industrial Es tate Authority of Thailand (IEAT) Act was amended 
in 2007 to establish the I-EA-T Privilege scheme. Under this scheme, raw materials and components 
are entitled to tax and duty exemptions if they are produced locally. Please clarify how these 
exemptions for raw materials and components are applied and whether they are contingent upon 
domestic content. 
 
 
 
                                                      
5 Thai Customs Department online information.  Viewed at:  http://www.customsclinic.org/ index.php? 
option= com_content&view=article&id=399&Itemid=367&lang=en [7 February 2011]. WT/TPR/M/255/Add.1 
Page 46 
 
 
 
 
  Answer 
In order to sell goods, which contain local raw ma terials and components from the I-EA-T Free Zone 
to the local market; Industrial Estate Authority of Thailand (IEAT) Act, Section 52/1 indicated in the 
case where materials, including products, by-produ cts and other things arising from the manufacture, 
which are taken out of free zone shall be impo sed with taxes or duties and where domestic raw 
materials are brought into free zone to manufacture,  mix, assemble, or pack or to do anything with 
those materials whereby those domestic raw materi als are unable to refund for ,or are not exempted 
from, duties, the prices of those domestic raw material  shall not be taken into calculation of taxes or 
duties in accordance with the rules, procedure and conditions as determined by the Director-General 
of the Customs Department (The  Custom Announcement No.1/2549). 
 
(v) Export financing and insurance 
 
Paragraph 92  
The state-owned Export-Import Bank of Thailand (EXIM Bank) provides a comprehensive range of 
credit and insurance facilities to promote exports  of goods and services as well as domestic and 
overseas investment aimed at expanding Thailand's commercial base.  Its facilities include working 
capital loans6, term loans, financing for overseas projects,  export credit insurance, buyers/bank risk 
assessment, buyer's credit, and export insurance.7  According to the authorities, the EXIM Bank holds 
approximately 1% of the export financing market and operates in a very competitive environment 
with commercial banks.  Since the EXIM Bank must generate its own funds, it offers its credit and 
insurance facilities at market prices based on risk, so as to ensure that it can make a profit.  
 
(US) Paragraph 92 notes that the Export-Import Ba nk of Thailand (EXIM Bank) provides a range of 
financial assistance to promote exports. The bank’s  financing options include its EXIM Flexi export-
credit insurance, EXIM 4 SMEs export-credit insur ance scheme, and Portfo lio Guarantee Scheme.  
As financing that is contingent upon export, these programs may qualify as prohibited subsidies. 
Please explain why these programs have not been notified pursuant to Article 25 of the SCM 
Agreement and whether Thailand plans to in clude them in its next notification. 
 Answer 
Insurance service is not considered subsidy. This is  because the premium charged to insured is set at 
market rate, i.e. at the same range as those offere d by other insurance providers in the market. The 
calculation of premium has been set by taken into co nsideration all relevant risk factors in compliance 
with the standard insurance underwriting policy.  EXIM does not provide premium discount nor 
privileges that shall be deemed subsidy to insure d. Moreover, income derived from insurance service 
is treated normal business income. EXIM has never received any compensation from the government in relation to its insurance business.  
Given the above explanation, EXIM insurance service is not subsidy. EXIM is thus not liable to make 
notification pursuant to Article 25 of the SCM Agreement. 
                                                      
6 Working capital financing includes a broad range of facilities such as pre-shipment financing, express 
export credit, pre-shipment financing for small- and me dium-sized enterprises, ex port supplier's credit, and 
packing credit, plus export-credit insurance.   
7 For terms and eligibility for these programmes see EXIM Bank online information. Viewed at:  
http://www.exim.go.th.  WT/TPR/M/255/Add.1 
 Page 47  
 
 
 
 
  (iv) Export assistance and incentives 
(v) Export financing and insurance  
(4) O THER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation 
 
(Korea) Despite recent efforts of th e Thai Government for simplification,  the complexity of Thailand's 
tax structure still seems to be pronounced. Uncertain ties with regard to potential tax burden can have 
a negative effect on foreign companies' investment in  a country. What is the Thai Government’s plan 
to further simplify and improve the tax system? 
 Answer 
Thailand is working on a "Tax Structure Reform Scheme", for the purpose of widening the tax base 
for sustainable economic growth, strengthening coun try’s competitiveness and creating more equality 
of income distribution. Regarding to the aforesaid sc heme, the further actions need to be considered. 
The Thai government will ensure that the "Tax Structure Reform Scheme" will support the country’s 
sustainability and its economic development.  (a) Direct taxes (b) Indirect taxes Excise duties  
 
Paragraph 104-105:  The rate of excise duty varies from one product to another and may be ad 
valorem , specific, or the higher of an ad valorem  or a specific duty.  The ad valorem  rates can be as 
high as 90% (for cigarettes). The excise duty on cars varies depending on several factors including 
engine size, power, and type of fuel.  Ad valorem  excise duties are based on the c.i.f. value of imports 
plus import duties and additional fees.  Excise duties on domestic production are based on the ex-factory price of the goods or gross receipts of the service.  
It would appear that, in some cases, different excise duties are imposed on similar products, for 
example, some distilled spirits ("special spirits")  have an excise duty of B 400 per litre of pure 
alcohol, while alcohol mixtures are taxed at B 300 a nd white spirits at B 120 per litre of pure alcohol.  
However, according to the authorities, duties on al coholic beverages are currently under reform with 
the objective of promoting transparency and equity. 
 
(Chile) Thai government would like to promote public health. However, whiskey, which has 35-40% 
alcohol, is taxed less than beverages with a lower p ercentage of alcohol such as wines that typically 
contain about 12%. Thailand’s alcohol tax system run contrary to the nation’s health needs. Why Thailand does use this tax system as appears contradi ctory to the policy? Why not adopt the universal 
standard of taxing adult beverages according to the amount of alcohol they contain?  
 
Answer The purpose of excise tax collection on alcoholic beve rages is to have alcoholic consumption rate in 
check, reducing public expenses on healthcare. However, government revenue is another 
consideration. In addition, Thai excise tax la w also recognize the luxury principle which uses ad 
valorem for tax base and also hea lth issue by collecting tax on amount, whichever number is higher.  
 (Chile) Thailand’s high tariff is an obstacle to ma rket access to alcoholic beverages. Wine importers 
have to face a total tax of nearly 400% when  import duties, excise taxes and other surcharges are 
calculated. High tariff would discourage potential exporters.     
 WT/TPR/M/255/Add.1 
Page 48 
 
 
 
 
  Answer 
According to the above answer, excise tax collection is still one of the most important revenue for the 
government, therefore, it would be difficult for th e Excise Department to re duce excise tax rate in 
order to fight smuggling problem.   
(c) Transparency 
(ii) Investment incentives 
 Paragraph 109-116   (EC) Could Thailand elaborate on previous and cu rrent government industrial policy on promoting 
Thailand as an international hub and export base fo r eco-cars and what is the minimum production 
criterion in terms of manufactured units per year for eligibility to tax in centives and lower excise duty 
rate under the Board of Investment eco-car scheme?   Answer 
Since 2003, Thailand has been actively promoting Thailand as the Detroit of Asia, the automotive 
hub. However, the eco-car scheme was only introdu ced for a short period of time (from 15 June-
30 November 2007) to serve the country’s conser vation and environment friendly policy and is now 
expired before the period of review. This sch eme is no longer in use. The minimum production 
requirement under this scheme in order to reach an economy of scale was 100,000 units within a 
period of five years.    
 
(EC) Could Thailand explain how the incentives comply with TRIMS agreement and the national 
treatment provisions of GATT Article III?   Answer 
BOI does not impose the requirement for use of lo cal content or any quantitative restriction on 
imports under the eco-car scheme, the condition set out is to encourage production process to create 
value-added, safety, environmental standard to the project leading to economic contribution.  
 
The EU understands that Thailand is currently dr afting a new law on logistics services business 
which intends to grant various tax and non-tax incentives under the BOI to increase the abilities of 
local logistic providers to ensure their survi val when the sector is liberalized under ASEAN 
integration program. 
 
Answer 
Public utilities and basic services i.e. concession ro ads, loading /unloading facilities for seaport, 
container yards are eligible activities promoted by the BOI, not only as part of the ASEAN integration 
program but for an overall national developmen t. See BOI Announcement No. 10/2552 (2009) 
Section 7.  
(EC) Could Thailand please provide information on the contents of this draft law and the proposed 
timeline for its adoption? Could you tell us more spec ifically what are the criteria to be met by 
logistic providers to obtain the incentives? Will Tha iland put in place measures that ensure there is 
no discrimination in the granting of such incentives?   
Answer 
The criteria for investment promotion for public u tilities and basic services required by the BOI is the 
same as the basic criteria required for investment promotion including: value added is not less than  WT/TPR/M/255/Add.1 
 Page 49  
 
 
 
 
  20 percent of sales revenue, the debt to equity ratio should not exceed three to one for a newly 
established project and projects must be  approved by relevant agencies.  
 
(India) Foreign nationals are not allowed represe ntation on the company’s board or top level 
management positions in Thailand. Foreign investment is more likely to be attracted if they have a 
major say over the company’s decisions and a co ntrol over the company policies. Are there any 
changes in the anvil which will allow foreign nati onals in the company’s board or top level of 
management?   Answer 
Foreign nationals are allowed to be  represented on the board of directors of companies in Thailand up 
to a specified limit. This also applies to foreign nationals who are Executives, Managers or Specialists 
to be transferred temporarily for providing the s upply of a service in Thailand under Intra-Corporate 
Transferees (ICT) requirements as specified in Thailand’s WTO commitments.     
 
(India) Does Thailand maintain any numerical quot as /ENTs/LMTs/minimum wage requirements on 
Mode 4 (Business Visitors, Intra Corporate Transf erees, Contractual Service Suppliers, Independent 
Professionals or any other category in the visa or  work permit regime)? If so kindly provide the 
details of the numerical quotas /ENTs/LM Ts/minimum wage requirements in force. 
 Answer 
Thailand has specified minimum wa ge requirements for foreigners who enter and stay in Thailand 
temporarily on Mode 4 under the immigration law.  
 (India) Under professional services (legal servi ces; architecture, engineering and integrated 
engineering services; accounting, auditing and bo okkeeping services; medical, dental and nursing 
services) what is the various discriminatory national treatment related restrictions prevailing as per 
laws, regulations or government orders in T hailand. Please provide all relevant details  
 
Answer 
For legal service, foreign services providers are not a llowed to engage in arbitration proceedings with 
relation to Thai Laws, but may do so if arb itration proceedings are based on foreign law. 
Foreign civil engineers are prohibited from working in Thailand.  Medical, dental and nursing 
services are not included in Thailand’s WTO schedule of commitments.   
 
(US) Paragraph 112 states that Th ailand’s investment incentives allow "approved projects" to qualify 
for a five-year exemption from import tariffs  on raw material and essential goods used in 
manufacturing exported products. Please explain how  this program is in line with Thailand’s 
statement that it no longer provides export subsid ies (See WT/TPR/G/255, page 15, paragraph 61). 
 
Answer 
The BOI does not impose export requirement on the project, the investor governs the nature of the 
project whether the manufactured products would be exported or sold domestically. The incentive serves the same purpose of the duty drawback scheme Section 19 bis provided by Customs 
Department, which is compliant to Annex II and III of the ASCM.  
 
(US) Paragraph 113 explains that Thailand’s Board of Investment provides tax-based incentives for investments related to sustainable development, such as biofuels, energy conservation, high 
technology products and more. What kinds of tax incentives are available for investments in 
sustainable development? What are the eligib ility requirements for companies to receive the 
incentives? WT/TPR/M/255/Add.1 
Page 50 
 
 
 
 
  Answer 
Various tax and non-tax incentives including import duty exemption on imported machinery used in 
the production, corporate income tax exemption a nd reduction, and reduction on taxable incomes for 
project-related expenses are offered to investment related to sustainable development. The criteria 
required is to promote sustainable environment de velopment to demonstrate energy reduction, and 
environmental preservation in which an investment plan for machinery change to save energy, to 
introduce alternative energy into the project, or to  reduce environmental effects must be submitted. 
 Paragraph 115:  Foreign investment in Thailand fell sharpl y in 2009 following the global financial 
crises.  However, despite civil unrest, it picked up again in 2010 although the value of investment remained well below the level in 2007 (Table III.8) .  In September 2009, following a ruling by the 
Administrative Court, a number of projects in th e Map Ta Phut industria l zone were suspended 
because health and environmental studies had not been  completed and public hearings had not been 
held.  The Supreme Administrative Court allowed a ll but two projects to resume by September 2010 
and the Government started to set up an indepe ndent authority to oversee health impacts of 
investment projects  
 (US) The Secretariat notes that the Thai Government took certain actions following the court case involving several major projects in the Map Ta Phut  industrial zone.  Please describe the new 
policies and measures related to he alth and the environment that are now in effect and any measures 
still under consideration, but not yet implemented, including the type of businesses and/or business 
activities subject to these new policies and measures.  Answer Proceeding the environmental concerns in the Map Ta  Phut industrial zone, the Ministry of Natural 
Resources and Environment requires existing projec ts, expansion projects in Map Ta Phut, and 
projects in Map Ta Phut engaging in mining operati ons, industrial estates, oil refinery, natural gas 
separation or processing, cement industry, raw s ugar, white sugar, refi ned sugar production, 
chemical fertilizers production, central waste trea tment plant, commercial airport, mass transit 
system, rail transport system, hotels and resort with  over 80 rooms or 4,000 sqm. area or more, and 
hospitals (with 30 in-patient beds or more if locat ed within 50 meters from river, coastline, lake or 
beach, and with 60 in-patient beds or more if located elsewhere) to conduct H/EIA (Health and 
Environmental Impact Assessment) and demonstrat e environmental impacts if there is any.  
 (iii) Competition policy  
 Paragraphs 117-118:  WTO Secretariat Report had indicated that Thailand indicated that for 
regulating competition it had passed Competition Ac t 1999. However, the Secretariat report had 
indicated that the Competition Act does not apply to  central provincial or local administration state 
trading enterprises co-operatives or corporative so cieties. Further, the Act provides wide ranging 
power to the Ministerial Regulations to specify the exemptions.  
 (India) Can Thailand be pleased to provid e the justifications for the above measures? 
 Answer 
The competition law does not apply to central provincial or local administration state trading 
enterprise cooperatives or cooperatives societies beca use it is government administration that does not 
have the objective to make profits. Regarding to th e Ministerial Regulations to specific exemptions, 
the Ministerial Regulations to specific exemptions  has not been issued since law was introduced.  
 
  WT/TPR/M/255/Add.1 
 Page 51  
 
 
 
 
  (iv) Price controls  
 
Paragraph 125:  Based on its monitoring of price fluctu ations, the CCP has the power, under the 
Prices of Goods and Services Act, to apply price co ntrols on goods and services.  According to the 
authorities, the objective of applying price controls is to prevent unfair price fixing or unfair trade practices.  The CCP maintains three lists of products subject to varying degrees of price control:  the 
Controlled List of 39 goods and 2 services fo r which the CCP imposes maximum prices; the 
Administered List of 205 goods and 20 services for which manufacturers must have approval from the Commission before raising prices or give advance notice of a change in prices;  and the Price Display List of 232 goods and 47 services for which retailers must display the price of goods and 
services.   
 
(EC) Could Thailand communicate the maximum pr ices for agricultural products, as well as list 
products for which intervention of the CCP took place and when?  Answer 
The Central Commission on Prices of Goods and Se rvices (CCP) has the authority to impose the 
maximum price for product or service in order to main tain the price at a certain level. The CCP shall 
impose the maximum price when the price is ma nipulated or other unfair business practices. 
 
(v) Government procurement and countertrade  
 
Paragraph 129:  At present, Thailand is neither a signatory  nor an observer to the WTO Plurilateral 
Agreement on Government Procurement.  Accordi ng to the authorities, Thailand is considering 
whether to become an observer as a possi ble first step towards full membership. 
 
(EC) Can Thailand confirm their intention to become an observer? 
 
Answer 
Thailand is now on the process of gathering all re lated documents, studying and analyzing the cost 
and benefit of becoming the WTO GPA member.   
(New Zealand) Section III paragraph 129 of the Secretariat report (WT/TPR/S/255) notes that 
Thailand is considering becoming an observer to th e GPA as a possible first step towards full 
membership of the Agreement.  We would be  interested in an update from Thailand on its 
consideration of this issue, including any indi cations available on likely timeframes for taking 
decisions in this regard.  Answer 
Thailand is now on the process of gathering all re lated documents, studying and analyzing the cost 
and benefit of becoming the WTO GPA member. 
 
Paragraph 130:  The legislative basis for government procur ement in Thailand is set out in several 
sets of regulations, including:  Office of the Prime Minister Regulations on Procurement B.E. 2535 
(1992), which has been amended seven times, most r ecently in 2009.  The Regulations are the core 
body of law for procurement by central government  and provincial administrative bodies.  The 2002 
amendment made a number of changes, in partic ular it implemented electronic auction (e-Auction) 
and the 2009 amendment changed the membership of the Procurement Committees;  Office of the 
Prime Minister Regulations Regarding Electronic Procurement B.E. 2549 (2006);  Ministry of the 
Interior Regulations Regarding Procurement fo r Local Administrative Organisations B.E. 2538 
(1995);  The legislative acts establishing large stat e enterprises and other public entities with their WT/TPR/M/255/Add.1 
Page 52 
 
 
 
 
  own procurement regulations;  The Public Tende ring Offenses Act B.E. 2542 (1999), which covers 
both the private and public sectors;  and Audit Committee on Fiscal and Budgetary Discipline 
Regulations B.E. 2544 (2001).  
 
(US) Please provide the details regarding any ame ndments to the procurement regulations now under 
consideration by the Thai Government. 
 
Answer 
In order to improve transparency efficiency a nd accountability of public procurement, the existing 
rule and regulation of p ublic procurement are in progress to be revised and changed to royal decree. 
 
Paragraphs 134-136 
 
(US) The Secretariat Report states: "According to the authorities, the core principles for government 
procurement remain openness, transparency, fairness,  efficiency, accountability, value for money, 
private sector participation, and local industry d evelopment."  How are "the core principles" for 
government purchases applied in processing electronic bids?  How much weight does price have in 
the final purchase decision?    
Answer 
 
 
In order to make Thailand’s government procurement system a nd government disbursing become 
transparency, accountability, efficient and cost-effec tive, CGD, whose plays an important role in 
controlling and managing the procurement system, has developed rules and regulation including the 
guidance in adopting the Electronic Government Procurement (e-GP). Moreover, CGD has also 
developed two more system such as "e-Shopping " and "e-Catalog" which can be access via the 
website, www.gprocurement.go.th. Electronic Govern ment Procurement system (e-GP) facilitates 
both government and private sectors to access th e necessary information about the government’s 
procurement in a timely basis. The system also h as the code of material and equipment including the 
list of sellers, which will be used, in every function of procurement. Moreover, e-GP will give bidders 
and servers the same information and equal opp ortunity to provide goods and works to the  WT/TPR/M/255/Add.1 
 Page 53  
 
 
 
 
  government as well.  
Therefore, e-GP can economize and optimize in im plementation of government project and it also 
give all bidders the same information and equa l opportunity to provide goods and works to the 
government. Moreover, e-GP will enhance tran sparency and accountability in government 
procurement system as well. Final purchase decision normally is focus on the price more than other criteria. 
 
Paragraph 138:  The legislation on Government procurement includes some preferences for 
domestic suppliers of goods and services, particular ly small- and medium-sized enterprises.  The 
Regulations on Procurement B.E. 2535 emphasize: th e use of products made in Thailand and Thai 
producers (Part 2, Section 2, Articles 16 and 17);  promot e the use of Thai advisors (Article 74);  and, 
as part of official health policy, give preferen ces to the Government Pharmaceutical Organization 
where the price differential does not exceed 3% of a reference price established by the Ministry of 
Public Health (Articles 60-64).  So me reports continue to state th at government agencies or state 
enterprises have the right to accept or reject bids  at any time and may also modify the technical 
requirements during the bidding process.  The latter pr ovision allegedly allows considerable leeway in 
managing tenders.  It was also reported that pr ivate-sector representatives have expressed concern 
regarding a government decision to remove arbitr ation clauses from concessions and government 
contracts.  In the previous TPR Report on Thailand, the authorities indicated that all dispute settlement could be made through the administrative or judiciary courts governed by Thai laws.  
 
(EC) Does Thailand intend to gradually rem ove discriminatory measures against foreign 
suppliers/goods in procurement and to improve th e transparency and the legal certainty in tendering 
procedures, including through the d evelopment of challenge mechanism? 
 Answer 
According to rules and regulations on Thai public  procurement, there are no discriminatory measures 
against foreign suppliers/goods in Thai procuremen t except giving advantage to several Thai public 
enterprises. However, public enterprise’s pr ivileges has been removed over the time. 
 
(EC) Could Thailand elaborate on the practices' coherence with other policy aims stated in the 
Secretariat report, in particular as regards transparency and accountability in the government 
procurement and foreign direct investment promotion?  
 
Answer 
According to the Prime Minister’s Procurement Re gulation B.E. 2535, the right to reject a bid will 
only be made under special circumstances, and is no intended to circumvent the requirements of the 
procurement regulation.   Article 42 (2) and (3) indicate that if the qualifica tion of each bidder, price quotation, catalogues or 
drawings, details and select the bidder who quotes the price in accord ance with the condition specified 
in price inquiry document and whose quality and qualification are beneficial to government and 
recommend to purchase from or contract with the selected bidder who quotes the lowest price. 
However, in the procurement announcement, it is st ated that the procurement agencies have the right 
to reject bid that offers that lowest price. With regard to the resolution from the Government 
Procurement Committee, the procurement agencies can re ject the lowest price bid, if there are proved 
evidences that the quality and qualification of procur ing items are not in the same condition specified 
in the procuring documents and not beneficial to government.  Article 53 after bidding, but before signing a contract  or agreement, if it is the imperative or the 
benefit of government to alter the essential details or conditions contained in  the bid documents which 
cause advantage or disadvantage among the bidders, the head of government agency shall cancel the 
bid.  WT/TPR/M/255/Add.1 
Page 54 
 
 
 
 
  Wrongdoing during the bidding process (The Pub lic Tendering Offenses Act B.E.2542 (1999)). 
If there is a derived joint benefit between the proc uring agency and the bidder (Article 15.7 and The 
Public Tendering Offenses Act B.E.2542 (1999) Article 4, 5, and 8).  Office of the Prime Minister’s Regulations on Pu blic Procurement B.E. 2535 (1992), Article 15.7 
indicates that after bidding awarded, if there is evidence showing that awarded bidder has co-interest 
with another bidders which causes impediment of fair and free competition. Head of government 
agency is authorized to cross out name of every bidder from the list.  If the winning bid exceeds the set budget (Article 43). If found that the bidding specifications ar e discriminatory (Article 15.2 and 15.3). 
 The Office of Auditor General of Thailand and the Office of the National Counter Corruption 
Commission (NCCC) has the right to revoke a bid if it is found that is a reasonable cause or 
wrongdoing was made during the bidding procurement process.   Appeals can be made through the following channels: the head of procuring government agency, the 
Procuring Committee in Charge of Procurement (CCP ), The Office of Auditor General of Thailand, 
The Office of The National Counter Corruption Commission (NCCC), and The Office of The 
Ombudsman. 
 
(US) How are Government Pharmaceutical Organization prices set?  Answer 
Even though Article 61 in the Prime Minister's Office Procurement Regulation B.E.2535 has 
indicated that the prices of products produced by GPO can be set at not higher than 3% of reference 
price for the government procurement, GPO has ne ver set the prices of our products higher than 
reference prices. In other words, GPO never employs this 3% privilege.  
In addition, according to Article 62, in case wher e the government  agencies open bid for the products 
that GPO does not produce but can supply, GPO will get the first right to this government 
procurement under the condition that the prices offere d by GPO must be equal to or lower than the 
prices offered by other bidders. Usually, there are on ly less than 5 products of GPO that meet this 
criteria. However, GPO has also never employs this privilege.  
Presently, the mentioned Prime Minister's Office Procurement Regulation B.E.2535 is under 
consideration for withdrawal by the Government.  Paragraph 142:  According to the authorities, one of the main tools for tackling the possibility of 
corruption is transparency and competition, along with fair prequalification procedures.  All of 
Thailand's laws, regulations, and policy guidelin es on public procurement are published in the Royal 
Gazette  as well as being posted on several official websites.  The actual procurements contracts from 
central government agencies must also be posted on the Thai Government Procurement website (Thai only), which also gives access to the e-Auction syst em and provides informa tion on selection criteria 
(such as price and bidders' qualifications), the results of  the auction, and details for the decision.  Thai 
officials are also required to abid e by codes of conduct, both specifically concerning public tendering 
and more generally. Bribery is a penal offence and is punishable by  fines and prison sentences, while 
the Transaction Committee, established under th e Anti-Money Laundering Act B.E. 2542 (1999), may 
ban any transaction where there are grounds for suspicion of bribery; assets may be frozen and forfeited.  
  WT/TPR/M/255/Add.1 
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  (Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu) In the interests of improving 
transparency and accessibility for businesses, does Thaila nd have plans to provide key information in 
English on the website?  Answer 
Thailand has provided government procurement in formation in English in case of international 
bidding for foreign suppliers participating 
 
(vi) Intellectual property rights 
IV. TRADE POLICIES BY SECTOR (1) A
GRICULTURE  
(i) Features 
 
Paragraphs 4 and 8  
 
(Singapore) The recent floods have affected rice paddy fields in the central/north-central regions of 
Thailand.  We would appreciate it if Thailand could provide an update on the extent of such damage 
(in terms of tonnage), and its impact on Thailand’s rice export for 2012.   
 Answer 
As a result from the recent flood, approximately 9.5 million rai (1.5 million hectares) of the rice 
paddy fields were damaged and caused yield loss of  4.9 million ton.  However, it may not have any 
impact on the rice export for 2012. It was believed th at the irrigated rice production (which will begin 
in early 2012) would be increased both in terms of area and yield because of sufficient water. The 
paddy areas, which are now recovered from the flood,  have already started preparing land for new 
crop.   Paragraph 5:  Foreign investment in agriculture in Thailand is restricted by the Land Code 
B.E. 2497 (1954) which prohibits purchase and owne rship of land by foreign persons or foreign 
owned enterprises based in Thailand, although foreig ners may lease land and buildings for periods of 
up to 30 years.  However, the Foreign Business Act B.E. 2542 (1999) prohibits foreigners from 
activities that fall under List One (businesses not pe rmitted for foreigners for "special reasons"), 
foreigners are prohibited from  rice farming, horticultu re, and farming of animals  
 
(India) Thailand is requested to explain the "sp ecial reasons" for prohibiting the foreigners from rice 
cultivation.  Answer 
Restricted businesses or activities under List One including rice farming govern businesses related to 
fundamental occupations and lifestyle of Thai people. 
 
Paragraph 15:  According to the Secretariat Report, tariff quota fill-rates vary widely, with in quota 
imports of some products greatly exceeding the minimum quota while some quotas are hardly used.  
 
(Canada) Could Thailand please provide more informa tion on the reasons for the consistently low fill 
rates for products such as garlic, coconut, copra and maize?  Answer 
There is small difference of tariff between in and out -of quota of garlic, while garlic price is relatively 
low. Under this circumstance, the importers norma lly import garlic with out-of quota system.    
 WT/TPR/M/255/Add.1 
Page 56 
 
 
 
 
  Previously, the production of coconut and copra were enough to use domestically. However, during 
the past 2 years, Thailand encountered the problem of  pest and drought in several coconut plantations 
and started to import both coconut and copra. Th e fill rates should be increased in the next 
notification. Maize production in Thailand is mostly self-sufficient for local use.  There is no demand from importers except in some years when the producti on may be too low due to the natural disasters.  
 
(ii) Trade in agriculture  
(iii) Agriculture policies (a) Market access 
 
Paragraphs 15 and 17:  Thailand notified imports under 23 ta riff quotas for an eclectic mix of 
products ranging from milk and cream to onion seeds.  Fill-rates vary widely with in-quota imports of 
some products greatly exceeding the minimum quota (such as potatoes, soybeans, and soybean cake) 
while some quotas are hardly used (such as garlic, coconut, copra, and maize).
8   
Some quotas are administered in ways that could limit access.  For example, in 2011 in-quota imports of maize are limited to the state-owned Public  Warehouse Organization, which may import only 
during 1 March to 30 June.  In late 2010, in resp onse to rising prices, the Ministry of Commerce 
announced that it was suspending application of qu otas and tariffs on soybeans, and soybean meal 
would be subject to a tariff of not more than 2% with no tariff quota limit.  However, imports were to 
be restricted to a limited number of private companies or trade associations.  
(US) According to the Secretariat Report, some ta riff quotas are administered in ways that could limit 
market access.  For example, in 2011, in-quota impor ts of maize were limited to the state-owned 
Public Warehouse Organization, "which may import only during 1 March to 30 June".  In light of Thailand’s obligations under the WTO Agreement on Agriculture, why are in-quota maize imports 
restricted to only these three months, and why are maize tariff quotas "hardly used?"   
Answer Maize production in Thailand is mostly self-sufficient for local use.  There is no demand from 
importers except in some years when the producti on may be too low due to the natural disasters.  
(b) Domestic support 
(iv) Support levels  
 Paragraph 28:  Thailand's most recent notification for domestic support is for the years 2005, 2006, 
and 2007.
9  This shows that about half of all support to agriculture was for infrastructural services 
(mostly for dams, drainage, and irrigation) and did not benefit producers directly.  The total support 
for infrastructural services and other measures notif ied in the Green Box averaged about B 40 billion 
in the 2000-07 period (Chart IV.1).  In addition, to Green Box support, Thailand also provides price 
supports for several products, particular ly rice, as well as input subsidies. 
 
(India) Thailand provides agricu lture support to farmers under Art 6.2, which is exempted from the 
calculation of Aggregate Measurement of Support. Under Art. 6.2, a developing countries can provide 
support to resource less and poor farmers.  
What are the criteria adopted by Thailand to iden tify resource less and poor farmers under Art. 6.2 of 
AoA?  
                                                      
8 WTO documents G/AG/N/THA/55, 63, 67 and 71. 
9 WTO document G/AG/N/THA/72, 27 October 2010.  WT/TPR/M/255/Add.1 
 Page 57  
 
 
 
 
  Answer 
Net income is used as the index to id entify the resource less and poor farmers.  Those who have the 
income lower than the poverty line  (less than USD2 per day in 2009) set by the Office of the National 
Economic and Social Development Board (NESDB). The poverty line is supposed to be adjusted 
every year, given available data, based on the inflation rate.    
(2) FISHERIES  
 
Paragraph 33:  Marine fisheries production was 2.1 milli on tonnes in 2007, worth about B 55,327 
million, of which about 60% was taken insi de Thailand’s Excl usive Economic Zone.10  However, this 
dropped to 1.64 million tonnes, worth about B 42,147 million in 2008.  Fish catches have been falling since 1961, which indicates that over-fishing h as been a problem, and official policy is now 
aimed at conserving and rebuilding stocks through ma nagement measures, such as:  restrictions on 
mesh sizes in parts of the Gulf of Thailand; bans on commercial fishing within 3 km of the shore; and 
annual licensing of fishing rights with exis ting licence holders eligible for new licences.  
 
(EC) In addition to the measures mentioned in paragraph 33, does Thailand use other fisheries 
management tools such as: 
 regular assessment (including scien ce based) of the stocks targeted, 
 stock and/or species specific measures, limiting th e harvest (including Total Allowable Catches or 
TACs) within safe biological limits,   
 control, enforcement (including penalties) and surv eillance, to ensure that management measures 
are complied with?  
 
Answer 
The Fisheries Act of 1947 stipulates various manage ment measures including allowable catch for fish 
species. Nevertheless, the allowabl e catch has never been implemente d since then due to multi-species 
and multi-gears interaction in fisheries. Un like single species management contemporary 
implemented by many countries including EU, there is no specific fishing gear targeting for specific 
fish species in our fisheries. A common fishing gear  can catch a large number of fish species within 
an operation. Each year, the 3-month area closure is  implemented in the Gulf of Thailand and in the 
Andaman Sea. Of course, based on the Fisheries Act of 1947 and its regulations, fisheries are under 
monitoring, control and surveillance (MCS) to ensu re effective compliance to various management 
measures. 
The Department of Fisheries has regularly con ducted resource surveys throughout the years. In 
addition, fish are sampled at port for scientific rese arches. The assessment of catch per unit of effort 
(CPUE) has also been carried out each year.    
 
Paragraph 36:  Thailand provides some subsidies for r esearch and development through various 
government agencies and responds to some of the problems facing the industry caused by rising fuel 
prices, the economic crises, natural disasters, a nd declining prices.  However, the authorities 
indicated that the amounts are quite small and are provided on a temporary basis and; because they 
are provided by different government agencies, the authorities were not able to provide a precise 
value.  
 
(EC) The EU understands that it might be difficult for Thailand to present data on such subsidies, 
nevertheless the EU would welcome if Thailand co uld provide more information on aid granted to 
                                                      
10 Department of Fisheries (2010) . WT/TPR/M/255/Add.1 
Page 58 
 
 
 
 
  Thailand's fishing industry. More specifically th e EU would very much appreciate if Thailand could 
provide:  
 an estimation of total volume of the subsidies (tot al amount or as a percentage of the total value 
of the catch) and 
 a brief description of the mechanism triggering the payment of the subsidies, e.g. fuel prices 
rising above a certain level, prices for fish products falling, below a certain threshold, economic crises. 
 
Answer 
Fisheries subsidies conducted by Department of Fisheries  in 2010 about 0.14 % of the total value of 
fishery production. This payment was for the support of  installation of artificial reefs in coastal areas 
and to alleviate economic dislocation of fisher men who suffered from heavy storm and lost their 
fishing vessels.     
 
(3) E
NERGY  
(i) Introduction (ii) Hydrocarbons (iii) Electricity (4) S
ERVICES  
(i) Main features and multilateral commitments  
Paragraph 59:  Services still account for a large part of th e Thai economy. However, their share in 
GDP has dropped slightly from 44.6% in 2007 to 42.9% in 2010, in contrast with the rising share of services in other Asia-Pacific economies. During 2007-10, the services sector grew at an average 
annual rate of 2.7% in real terms, lower than the growth rate for the economy as a whole (3.2%).  
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu)  
 What are the main reasons why the average annual gr owth of the services sector has been lower than 
that of the whole economy over recent years, and why its share in Thailand’s GDP has dropped 
slightly compared to other industries? 
 
Answer 
Thailand has experienced many disruptions to its economy over the past few years, including political 
instability, national disaster and the downturn in  the global economy.  Th ailand is an open economy 
and therefore is extremely sensitive to both  internal and external shocks.      
 
Does Thailand have any plans for stimulating the growth of services and strengthening the sector’s 
position in the economy?  Answer 
Thailand is developing a long term strategy for ser vices sectors, which it aims at improving capacity, 
quality and competitiveness in the face of increase globalisation.    
 
Paragraph 65   (New Zealand) Section IV, paragraph 65 of th e Secretariat report indicates that Thailand has 
undertaken services liberalization commitments under the ASEAN Framework Agreement on Services 
(AFAS) and the ASEAN Economic Community Blueprin t (2007).  Could Thailand please provide an 
update on progress in implementing these initiatives, in cluding an indication of expected outcomes in  WT/TPR/M/255/Add.1 
 Page 59  
 
 
 
 
  respect of the objective to "substantially reduce all restrictions on trade in services by 2015" (as 
referenced in the Secretariat’s paragraph 65). 
 Answer 
Thailand has been undertaking crucial steps in lib eralizing trade in service under ASEAN Framework 
Agreement on Services: AFAS and the AEC Bluepr int. All of the main service sectors namely 
Business services, Communication services, Construction and related Engineering services, 
Distribution services, Education services, Environmental services, Health related and Social services, Tourism and Travel related services, Recreationa l, Cultural and Sporting services and Transport 
services are included under schedule of commitment.   We are constantly improving our schedule according to  the target set out in the AEC Blueprint with 
wider sector coverage and deeper level of commitme nt. Various agencies have taken parts in keeping 
up with the liberalization target and we remain optimistic that the goal of AEC 2015 should be 
achieved as planned. 
 
Paragraph 66:  Overall, the liberalization of Thailand's se rvices sector is still an ongoing agenda.  
Significant restrictions remain on market entry and fo reign equity participation in several subsectors, 
and the regulatory framework is burdensome.  Rationalizing the regulatory regime and increasing 
competition in Thailand's services sector could help to enhance innovation and productivity, and 
hence increase the competitiveness of the Thai economy as a whole.  
 
(India) It has been mentioned in the report t hat the liberalization of services sector is an ongoing 
agenda and significant restriction remain on market en try and foreign equity participation in several 
sub-sectors and the regulatory framework is burdensom e. What is the broad reform agenda that the 
Thai Government is pursuing in the Services Sector ? What are the details of any impending reform or 
liberalization in the services sector? Further, why has Thailand not b ound the existing FDI caps in 
the services sector? 
 
Answer 
Thailand is currently developing a national restruct uring plan for the domestic services industries in 
Thailand.  The plan aims to lay the foundation in terms of improving services quality and competitiveness in order to meet the challenges of li beralization, particularly in the ASEAN region.  
Thailand’s regulatory regime governing services sector s, which Thailand has committed to liberalize, 
will be subject to amendment.  Legislation gove rning key sectors, transport, distribution and 
telecommunications are under review.       
 
(New Zealand) Section IV, paragraph 66 of th e Secretariat report observes that "significant 
restrictions remain on market entry and foreign equity participation in several [services] sub-sectors" 
and that "increasing competition in Thailand’s servic es sector could help to enhance innovation and 
productivity and hence increase the competitiveness of  the Thai economy as a whole".  We would 
appreciate an indication from Thailand on what steps it is taking to consider ways to promote this 
rationalization of its regulatory regime and impr oved competitiveness, including through expanded 
access for foreign services suppliers capable of s timulating further innovation across the Thai 
economy. 
 Answer 
Thailand is currently developing a national restru cturing plan for the domestic services industries in 
Thailand.  The plan aims to lay the foundation in terms of improving services quality and competitiveness in order to meet the challenges of li beralization, particularly in the ASEAN region.  
Thailand’s regulatory regime governing services sector s, which Thailand has committed to liberalize, WT/TPR/M/255/Add.1 
Page 60 
 
 
 
 
  will be subject to amendment.  Legislation governing key sectors, transport, distribution and 
telecommunications are under review.       
 
(ii) Financial services 
 Legal framework  
 Paragraph 75:  Under the FIBA, the BOT may increase, on a case-by-case basis, the statutory cap 
on foreign ownership in commercia l banks and other financial ins titutions from 25% to 49%, and the 
limit on the number of foreign directors from one quarter to one half of total directors.
11  Moreover, 
the Finance Minister, with the advice of the BOT, h as the authority to allow foreign investors to hold 
more than 49% of a commercial bank's shares, wh ere this is deemed necessary to improve the 
financial performance or strengthen the security of an y financial institution, or the financial system as 
a whole.  This authorization may be granted accordi ng to specified rules and criteria and subject to a 
time-limit.  The authorities indicated that these rules a nd criteria are in the process of being defined.     
 
(US) While handled on a case-by-case basis by the BOT, what are the rules or principles that govern 
increases on the statutory cap on foreign own ership in commercial banks and other financial 
institutions?  Does the FIBA provide the basis for making those determinations? 
 Answer 
There are no other specific rules or principles than Section 16
12 of the Financial Institution Business 
Act B.E. 2551 (A.D. 2008) (the "FIBA") that govern increases on the statutory cap on foreign 
ownership in commercial banks and other financial institutions.  Only the FIBA provides the basis for 
making those determinations.  
(US) Is the Minister of Finance able to make the determination on foreign investor ownership only if 
advised to do so by the BOT?  Can the Minister of Finance make that determination without the 
BOT’s advice? 
 Answer 
According to the FIBA, in the case where it is nece ssary to rectify the operation or to strengthen the 
stability of any financial institution or for the purpo se of the financial institutions system stability, the 
Minister of Finance, with the advice of the BOT,  will make the determina tion on foreign investor 
ownership to hold more than 49%. The Minister of Finance shall not make that determination without 
the BOT’s advice.  
 
                                                      
11 Section 16 of the FIBA.  The Bank of Thailand ha s granted exceptions to the 25% cap in several 
occasions. 
 12 Section 16 of the Financial Institution Business Act B.E. 2551 (A.D. 2008) "The amount of shares of 
a financial institution held by persons of Thai nationality shall not be less than seventy-five percent of the total 
amount of voting shares sold and the number of its direct ors who are persons of Thai nationality shall not be less 
than three quarters of the total number of directors.  In the case where the Bank of Thailand deems appropriate, 
the Bank of Thailand may grant permission that persons of non-Thai nationality hold shares up to 
forty-nine percent of the total amount of voting shares sold and may permit a proportion of non-Thai nationality directors of more than one-quarters but shall not reach one half of the total number of directors.  
In the case where it is necessary to r ectify the operation or to strengthen the stability of any financial institution 
or for the purpose of the financial institutions system stability, the Minister with the recommendation of the Bank of Thailand shall have the power to relax the requirement of the shareholding and directorship other than 
those prescribed in the second paragraph. Such relaxation may be granted with rule and time clause."  WT/TPR/M/255/Add.1 
 Page 61  
 
 
 
 
  Paragraph 76 :  The FIBA makes the BOT the sole regulat or of commercial banks and provides it 
with broad supervisory powers to  conduct consolidated supervisi on of financial conglomerates and 
take prompt corrective action.  The Act also perm its regulators of SFIs to assign the supervision of 
these institutions to the BOT.  The Minister of Finance retains the authority to grant or revoke 
banking licences upon recommendation of the BOT.  An  amendment to the Bank of Thailand Act, 
also introduced in 2008, further strengthened the autonomy and operational independence of the 
central bank.  
 
(US) Can the Minister of Finance decline to grant or revoke a license against the advice of the BOT?  
If so, what criteria does the Finance Minister consider when declining to follow the BOT’s 
recommendation?  
Answer According to the FIBA, there should be some reas onable ground which makes the Minister of Finance 
decline to grant or revoke a license against the ad vice of the BOT.  In practice, the Ministry of 
Finance and the BOT will work together on a case-by- case basis, so there has ne ver been the case that 
the Minister of Finance declines to follow the BOT’s recommendation. 
 
Insurance 
Capital Market 
Market structure 
 
Paragraph 101:  Overall, Thai capital markets continued to grow during the review period, albeit 
with important fluctuations.  After a sharp contr action in 2008 due to the global financial crisis, 
Thailand's main equity market, the Stock Exchan ge of Thailand (SET), improved its performance 
significantly in 2009 and 2010.  The SET Index in creased from 449.9 at end 2008 to 1,032.8 at end 
2010.  The Market for Alternative Investment (M AI) Index, a secondary market for small and 
medium-sized enterprises, closed at 272.8 at e nd 2010.  Total market capitalization (SET and MAI) 
was US$279.4 billion (up from US$103.3 billion at end 2008).  Local retail investors accounted for 
56% of total trading volume, foreign investors for 22%, proprietary trading for 14%, and local institutional investors for 8%.  
(India) It has been mentioned in the Sectt. Report that Stock Exchange of Thailand (SET) improved its 
performance in 2009 and 2010. Please indicate the se ctor wise breakup of the SET responsible for the 
good performance. 
 Answer 
Overview of SET 2010/2009 
 2010 2009 % Change 
Market cap (MB) 8,334,684.11  5,873,100.93  42% 
Trading value (MB) 6,937,889.87  4,338,479.27  60% 
SET Index 1,032.76  734.54  41% 
 WT/TPR/M/255/Add.1 
Page 62 
 
 
 
 
  Breakup of sector wise by rankin g market cap as of year ended 2010 
Sector Market cap (MB) Trading value (MB) Price index 
 
2010 2009 % 
Change 2010 2009 % 
change 2010 2009 % 
change 
Resources 2,406,310.70 1,830,272.15  31% 1,788,938.16 1,588,172.46 13% 188.38  143.87  31% 
Financials 1,756,603.77 1,331,291.96  32% 1,522,536.94 1,011,577.15 51% 128.18  94.91  35% 
Property & 
Construction 1,121,809.91 842,500.19  33% 1,029,941.37 641,700.39  61% 83.87  63.55  32% 
Services 1,002,172.60 619,760.35  62% 544,188.87  421,397.86  29% 150.55  100.78  49% 
Industrials 755,888.91  279,939.74  170% 731,572.91  147,442.77  396% 160.54  66.12  143% 
Technology 681,847.93  570,179.80  20% 684,222.05  298,194.77  129% 91.29  77.16  18% 
Agro & Food Industry 491,329.91  287,483.74  71% 493,689.52  130,853.37  277% 306.06  180.06  70% 
Consumer 
Products 92,947.31  73,041.10  27% 23,379.28  14,942.58  56% 115.91  90.09  29% 
Source: SETSMART. 
 
(iii) Telecommunications 
(iv) Transport 
 
(Norway) Could Thailand please indicate whether the new legislation will affect the ability of foreign 
providers of maritime transport services to  provide services in Thailand?   
 
Answer 
What is the "new legislation"? Please indicate clearly. 
 
(a) Air Transport  
 Paragraph 134:  We note that Thailand pursues a gradual liberalisation approach to managing its air 
transport policy.  The Secretariat Report indicates  that "limitations and restrictions imposed on 
foreign airlines involving the capacity and frequency as well as route schedule and traffic rights are gradually being removed".  We would appreciate it if Thailand could provide an indication of the 
specific restrictions that would be removed and the indicative timeline for further liberalisation.  
 (Singapore) We note that Thailand pursues a gradual liberalisation approach to managing its air transport policy.  The Secretariat Report indicat es that "limitations and restrictions imposed on 
foreign airlines involving the capacity and frequen cy as well as route schedule and traffic rights are 
gradually being removed".  We would appreciate it if Thailand could provide an indication of the 
specific restrictions that would be removed and th e indicative timeline for further liberalisation.  
 Answer 
Thailand has implemented a gradua l liberalisation approach by exchanging rights with Contracting 
Parties on a reciprocal basis. Limitations on capaci ty and frequency entitlements, restrictions on 
points en route and traffic rights e.g. 5
th freedom traffic rights are gradually removed without specific 
timeline, as this also depends on our Cont racting Parties and some other factors. 
 
Paragraph 137:  The Secretariat’s report indicates that "/…/Under the Air Navigation Act, in order 
to register a commercial aircraft and obtain an ope rating license, a company must be registered under 
Thai law and have its main office in Thailand, at  least 51% of its shares must belong to Thai 
nationals, and the majority of the board of directors must be of Thai nationality./…/".  
 
(EC) Does the Thai Government have a plan to rel ax the 49% limitation of the foreign equity and 
nationality requirement in th e air transport services?   WT/TPR/M/255/Add.1 
 Page 63  
 
 
 
 
  Answer 
No, Thai Government does not have any plan to amend the Act now. 
 
(EC) Can the government explain the rationale of this prohibition?    
Answer In 1999, Section 31 of the Act was amended by th e Air Navigation Act (No.10) B.E.2542 in order to 
promote foreign investment in an airline business.  However, with economic and security reasons, the 
Thai Government still has a policy to maintain the 49% limitation of the foreign equity and nationality 
requirement.  
(EC) Can the government explain if there have been  a specific companies authorized to operate in 
Thailand beyond those requirement?  
Answer There has been no specific company authorised to  operate in Thailand beyond those requirement. 
 (b) Maritime transport and ports   Paragraph 144  (Japan) According to the Secretariat’s Report, th e Ministry of Transport is considering cessation of 
TMN business operations due to their unsatisfacto ry performance. Japan would like to know if there 
is any possibility of the TMN being privatized.  
Answer The Ministry of Transport has no policy to privatize TMN.  
 
Paragraph 146:  The Secretariat’s report states "/…/In or der to provide international shipping 
services under the Thai flag, operators must: be at least 51% Thai-owned /…/". 
 (EC) Does Thailand plans to relax the 49% limitati on of the foreign equity in the maritime transport 
services? Could Thailand elaborate on this restrictio n's coherence with other policy stated in the 
Secretariat report, which is aimed at pr omoting the maritime transport industry?  
 
Answer 
No, Thailand does not have any plan to relax such  limitation of the foreign equity for Thai-flag 
vessels engaged in international tr ade due to the following reasons: 
 For national security reason, it is required that a ll commercial vessels will be used to support all 
the nation’s affairs under the supervision of the Ro yal Thai Navy during the war time. Therefore, 
it is necessary to develop and maintain a genuine link with the national administration through the 
requirement on the majority of national equity.  
 Thailand is a member of the International Mar itime Organization (IMO) and, hence, is committed 
to implement IMO instruments related to maritime safety, security and marine environment protection. Therefore, it is necessary to maintain  a genuine link between a vessel flying its own 
flag and the maritime administration to ensure  effective implementation and full compliance. 
 International maritime transport from and to Th ailand is already open to sea-going vessels of all 
nationalities. Shippers can freely choose any maritime  transport services available at Thai ports.   
  WT/TPR/M/255/Add.1 
Page 64 
 
 
 
 
  Paragraphs 147-158 
 
(Hong Kong) According to the Secretariat report,  there are a number of restrictions/limitations on 
foreign participation in the maritime transport sector,  such as the provision of domestic shipping 
services by foreign vessels, the use of Thai-flagged vessels on shipments relating to goods imported by 
government agencies or public enterprises, foreign eq uity limitations on port services, etc.  We would 
like to know what are the reasons for keeping these restrictions and if there is any plan by the Thai 
authorities to review such restrictions fo r further liberalization in the sector.  
 Answer 
 The major reasons for keeping these restrictions are: 
 To ensure that a genuine link between vessels flying Thai flag and the national maritime 
administration is maintained for th e purpose of national security reason. 
 To promote Thailand’s maritime transport industry. 
Thailand is now in the process of reviewing the existing cargo reservation scheme with a view to 
reducing designated shipping routes where imported gove rnment cargo are required to be serviced by 
Thai-flag vessels.   
(Japan) According to the Secretariat’s Report, "A Ministerial Notification of the Ministry of 
Transport requires that goods impor ted directly or indirectly by government agencies or public 
enterprises must be transported by Thai-fl agged vessels on designated shipping routes where such 
vessels are available for services. " Japan understands that this regulation is called a "cargo 
reservation". However, Thailand has not made any reservations on mode 1 of Passenger Transportation and Freight Transportation in Mar itime Transport Services except freight traffic 
between Thailand-China and Thailand-Vietnam, as  long as we check the maritime commitments 
Thailand was undertaking during the Uruguay Round. Japan would like to know Thailand’s view on 
this point. 
 Answer 
Thailand has not made any reservations relate d to cargo reservation on Mode 1 of Passenger 
Transportation and Freight Transportation in Maritim e Transport Services because of the following 
reasons: 
1. The cargo reservation scheme has been specifically applied to the imported government cargo 
which constitutes a very small proportion of Thaila nd’s international maritime trade with no 
substantial trade value. 
2. It is possible to apply for waiving the use of  Thai-flag vessels on designated shipping routes if 
such vessels are not available fo r services at the time such im ported government cargo are to be 
loaded on board. Currently, waivers have b een granted to imported government cargo on the 
Europe-Thailand and the United States-Thailand shipping routes where no Thai-flag vessels are 
in services.    
 
Paragraph 148  
 
(Norway) Reference is made to WT/TPR/S/25 5 chapter 4 (iv)(b) Mar itime transport and ports, 
paragraph 148. Could you indicate the legal basi s for the cargo reservation policy and if there are 
possibilities for granting waivers?  Answer 
The legal basis for the cargo reservation policy is Section  17 of the Maritime Promotion Act, 
B.E.2521, as amended by the Act, B.E.2548, which stipulates that cargo imported by a government  WT/TPR/M/255/Add.1 
 Page 65  
 
 
 
 
  agency or a private sector being party to a contract with such government agency must be transported 
by a Thai vessel available for services at the por t of loading and on the intended shipping route. 
However, Section 20 of the Act contains a provision which indicates exemptions for the use of Thai vessels in the following cases: 
(1) No Thai vessel is available at the time such cargos are to be loaded on board. 
(2) Thailand is party to an international treaty or agreement which accepts di fferent practices for the 
transportation of imported government cargo. 
(3) There are special cases for relaxing or waiving the provision of Section 17. 
 
Presently, the services of Thai vessels are mainly confined to Asian trade routes. Importers of 
government cargo from certain trade routes including Europe-Thailand and the United States-Thailand have been granted waiver s for the use of Thai vessels. 
 
Paragraph 153 
 (Norway) Thailand informs in WT/TPR/S/255 chapter 4 (iv)(b) Mar itime transport and ports, 
paragraph 153 that it is not a party to the Unite d Nations Liner Code of Conduct. Could Thailand 
please indicate whether it will consider becoming par ty to the United Nations Liner Code of Conduct 
in the near future?   Answer 
Thailand has no plan to be party to the United Na tions Liner Code of Conduct in the near future 
because at present its merchant fleet can accommodate only about 10% of its international maritime 
trade in terms of volume. Therefore, it is not easy for Thailand to implement and meet the 
commitment of certain provisions of the Code, in particular, those related to cargo sharing 
arrangements.    
Paragraph 155 
 
(Norway) Could Thailand provide figures exemplifyi ng the differentiation on port fees for export and 
import cargoes? (Reference to (iv)(b) paragraph 155)  Is this differentiation system used in all 
harbours and related to a national fee system?  Answer 
The differentiation system has been introduced with a view to promoting the use of Bangkok Port and 
Laem Chabang Port as the country’s gateways for export since the two ports have complete facilities 
for all types of exported cargo. The fees for export and import cargoes are slightly different. The differentiation system is mainly applied to ports  under the supervision of the Port Authority of 
Thailand (PAT), not all ports and harbors in Thailand.  However, it is possible that the PAT port tariff 
may be used as a reference for some ports and har bors.  Currently, Thailand does not have a national 
fee system.   
 
(c) Road and rail transport  
 
Paragraph 162 
 
The Secretariat’s report states "An applicant for a licence to provide domestic road transport services 
must either be a Thai national or a company incorp orated under Thai law with its head office located 
in Thailand.  Moreover, not less than half of the directors of the company must be Thai nationals and WT/TPR/M/255/Add.1 
Page 66 
 
 
 
 
  at least 51% of the capital must belong to Thai nationals in the cases of a limited company and 50% 
for a public company. /…/". 
 
(EC) Is there any plan to further liberalize the foreign participation in the road and rail transport 
sectors? Can Thailand clarify if international transport companies of other ASEAN members are 
authorized to transport goods through Thailand's road network?  
 
Answer 
Thailand aims to increase foreign participation in road transport services as specified in the AEC 
Blueprint, and considers amending concerned laws  and regulations. At the moment, no company of 
other ASEAN members is allowed to conduct dom estic transport in Thailand since domestic 
transportation is a reserved business of all countries, as it concerns national security. 
 
(v) Tourism 
 
WT/TPR/G/255 – Thailand Country Report 
 Paragraph 41 and 45:  The report by the Government describes Thailand’s trade policy and its 
objectives.   (EC) Does Thailand envisage concrete steps to  promote progressive liberalization? What steps does 
Thailand intend to undertake to liberalise further th e services sectors, while, the Government Report 
seems to suggest a heavy focus on its inten tion to nurture domestic services sectors? 
 Answer 
Thailand is currently developing a national restru cturing plan for the domestic services industries in 
Thailand.  The plan aims to lay the foundation in terms of improving services quality and 
competitiveness in order to meet the challenges of li beralization, particularly in the ASEAN region.  
Thailand’s regulatory regime governing services sector s, which Thailand has committed to liberalize, 
will be subject to amendment.  Legislation governing key sectors, transport, distribution and telecommunications are under review.       
 
Paragraphs 41 and 46 
 
(Australia) We would welcome an update on the review of the laws which are identified, namely: the 
Competition Law, Foreign Business Ac t, and three Insurance-related Acts. 
 
Answer 
The revision of Thai competition law is revised the scope of the law to apply to state-owned 
enterprises, especially in the form of public comp any, that compete with the private sector. Currently 
the amendment proposal is under consideration of the Office of the Council of State.   
 
Paragraph 45 
 
We note that the Government has taken steps to nur ture service sectors, including those that have 
export potential and to assist them to go abroad on a strong footing.  
 
(ASEAN) Could Thailand elaborate which particul ar service sectors are included in this? 
   WT/TPR/M/255/Add.1 
 Page 67  
 
 
 
 
  Answer 
Health services  
Tourism services  Construction services   Paragraph
 74:  Thailand refers to drought and floods in 2010 and its severe impact on certain 
productions.  
 
(EC) Would it be possible to get a more detailed report of the impact on sugarcane, palm oil and 
rice? Also, in relation to current floods in Thailand, could Thailand already comment on the most likely impact on food production and food prices?  
 
Answer  
The drought and flood in 2010 reduced rain-fed rice yield for about 4.6% while there was no effect on 
irrigated rice production. About 1.3 million tonnes of sugarcane and 0.8 million tonnes of palm oil 
were damaged.   
In relation to current flood in Thailand, it is too soon to provide precise da ta on food production and 
prices. However, as flooded areas are mainly in th e central part of Thailand where horticulture and 
fisheries are produced, it is predicted that production should be reduced, resulting on higher price, at least for a short term.    
 
Paragraph 76:  Thailand describes very broadly its agricultural policy.  
 
(EC) Could Thailand indicate the public budget allocated to this policy? 
 
Answer 
In the 10
th NESDB Plan (2007-2011), each year the MOAC was allocated the average budget of 
70,000 million baht. As many of offices of the MOAC are involved in the budget calculation and 
desegregation, it might take a while to be able to  report the details required in paragraph 76 of 
document WT/TPR/G/255. 
 
Paragraph 77:  Thailand refers to activities such as promotion of quality agricultural products.  
 
(EC) Could Thailand give more detail on these q uality schemes? Are thes e private schemes, or 
publicly supported? Do they cover organic produc tion, geographical indications (GIs)?  
 
Answer 
The schemes are publicly supported and focus main ly on establishing Good Agricultural Practice 
(GAP). GAPs are introduced to farmers so as to improve production quality and to be used as an 
inspection mechanism of food safety of all commodities, including organic farming. The publicly supported schemes cover geographi cal indications (GIs) as well. 
 GAPs are developed by the National Bureau of  Agricultural Commodities and Food Standards 
(ACFS), which was established in October 2002. GAP helps meet the community demand to reduce 
the use of chemical substances, improving the qualit y and add the agricultural values to the products. 
It also has farm inspectors to examine the quality  of produces of farms and provide GAP certification 
marks for those farms that pass the criteria.  MOAC strongly recommends that exporters buy from farms with GAP certification marks. This increases the credibility of Thai agricultural produces.  
 WT/TPR/M/255/Add.1 
Page 68 
 
 
 
 
  The high quality and safe products are exported directly  to suppliers and to Thai restaurants abroad 
and locally used as ingredients in the agro-industries.  
 
Paragraphs 79 and 82  
 
(Singapore) Backed by the National Industria l Development Master Plan to enhance industry 
competitiveness, Thailand’s industrial sector regi stered a 10.9% year-on-year increase in 2010.  
However, the continuation of such growth mi ght be hampered by the recent floods, which have 
resulted in extensive damages to industrial properti es and equipment.  In this regard, we would 
appreciate it if Thailand could elaborate on plans to assist such firms in resuming their operations 
and the preventive measures to mitigate the impact of future floods in these industrial parks. 
 
Answer 
1. Loan from Small Business Credit Guarant ee Corporation (SBCG) and the Government 
 Savings Bank. 2. Industrial Estates Flood Management Plan for the Long Term Phase.  
2.1 The Industrial Estate Authority of Thailand will be offered loan to develop their flood 
 protection systems for manage the flood risk over the next 50-100 years. 
2.2 Design, construct and improve the infrast ructure’s capacity: water supply system, water 
 management system, electricity network sy stem – to ensure operation and better risk 
 management in case of flood. 
2.3 Improve Early Warning System for effici ent flood emergency management to ensure 
 industrial confidence, for instance, dams, reservoi rs, irrigation system in the specific areas to 
 control water flow and respond to wa ter demand in the industrial parks. 
 
Paragraph 105  
 
(Singapore) We note that the Bank of Thailand has continued to ease exchange control regulations, 
and that the relaxation is aimed to add more balan ce to Thailand’s capital flows and provide more 
investment alternatives to Thai individuals.  We  would appreciate if Thailand could provide more 
information on the exchange control regulations that have been relaxed.  
Answer  
During 2007-2009, the exchange control regula tions that have been relaxed included: 
 raising limits on Thai direct investment abroad  and finally removing the limit of investment 
by juridical persons in 2010 
 allowing institutional investors to invest in securities abroad within permitted amount limit 
and later expanded the scope of portfolio i nvestment by allowing them to engage in 
derivatives transactions in order to fac ilitate investment and risk management 
 allowing retail investors to purchase securities abro ad upon the Bank of Thailand’s approvals  
 raising the limit for purchase of immovable properties abroad  
 allowing juridical persons to lend to non-aff iliated companies abroad within permitted amount 
limit  
 relaxing regulations on forei gn currency deposit to allow residents to deposit funds from 
abroad without restrictions and foreign curre ncies purchased from commercial banks up to the 
permitted outstanding balances (such as up to USD 100 million for companies having future  WT/TPR/M/255/Add.1 
 Page 69  
 
 
 
 
  obligations payable in foreign currencies). 
 
Paragraph 155:  The report by the Governme nt states that "According to  the Foreign Business Act 
B.E. 2542 (1999), foreign participation is allowed in  a wide range of activities, such as brokerage 
services, wholesale and retail trade, construction, non-silk textiles, garments, footwear, hotels, 
beverage production, and auction businesses.  Howe ver, foreign investors are required to obtain 
necessary permissions from relevant ministries to be able to operate. /…/".  
(EC) Can Thailand elaborate on whether there will be foreseeable policy chang es in the near future 
to investment incentives/schemes pr ovided, especially under the Board of Investment (BOI)? Can 
Thailand specify the amounts of FDI pledged and th e amounts of FDI disbursed under the Board of 
Investment (BOI) of Thailand and, on the other hand, under the regular regime governed by the 
Foreign Business Act?   Answer 
The activities which are eligible for investment  promotion are those which are important and 
beneficial to the economic and social development,  and security of the country, activities which have 
high content of capital, labor or service or ac tivities which utilize agricultural produce or natural 
resources as raw materials, provided that the industry are non-existent in the country, or existent but inadequate, or use out-of-date production processes.   
The amount of FDI in the year 2009 is as attached. 
 
Paragraphs 191-192 
 
(Japan) Please inform us of the category of prof essionals if ASEAN has negotiated or is negotiating 
MRAs on any other professionals than the seven cate gories of professionals liste d in paragraph 191? 
 
Answer  
So far ASEAN have signed 7 MRAs where 5 have b een concluded and entered into force, namely 
Engineering, Architect, Medical, Nursing and Dental, while the framework arrangements for 
Accountancy and Land Survey are in place and to  be negotiated and concluded in the future.   
 
(Japan) Which MRAs listed in paragraph 191 have entered  into force? Please inform us of the current 
status and future stages for implementation of mu tual recognition of each professional category and 
provide the text of the implementation ag reement for each professional category, if any. 
 
Answer  
ASEAN is focusing on the existing MRAs which have  been concluded, to be fully implemented 
before consider developi ng new professional MRAs.  
 
(Japan) Is ASEAN planning to standardize a medical system in the region as a project of the ASEAN 
Economic Community by 2015, while ASEAN ha s concluded MRAs on Nursing services, Medical 
Practitioners and Dental Practitioners? 
 
Answer  
As for the standard medical system, so far, the st andard medical system in the region has not been 
developed, currently ASEAN is in the process of  exchanging and compiling each member’s domestic WT/TPR/M/255/Add.1 
Page 70 
 
 
 
 
  regulations as well as core competency standard w ith the aim to develop ASEAN core competency 
standard in the near future. 
 
(Japan) In the ASEAN Mutual Recognition Arrangeme nts on professionals, there exists a provision on 
the Dispute Settlement Mechanism on related matte rs on mutual recognition. Japan would appreciate 
it if Thailand could provide information on wheth er any dispute settlement procedure has ever been 
undertaken based on these provisions? 
 Answer 
No dispute settlement procedure has ever taken place 
 
vi) Free trade agreements  
 
(Norway) In WT/TPR/G/255 chapter V (vi) informa tion on free trade agreements are outlined. We 
would be pleased to receive information on wheth er maritime transport services are included in these 
agreements.  
Answer Maritime transport services are included in some fr ee trade agreements such as Thai-Australia FTA, 
Thai-India FTA, Thai-Japan FTA (JTEPA), ASEAN-China FTA.  
FUTURE ECONOMIC AND TRADE POLICY DIRECTIONS  
 Border Trade 
 
(India) Report of WTO and Thailand: In both the Repo rts, no details of Thailand’s trade through land 
border have been indicated. What steps have been taken by Thailand to encourage border trade with 
neighbouring countries? Has Thailand entered into transit-trade agreements with any country? If so, 
details of such agreements?  
 
Answer 
One of the steps Thailand has taken to encourage border trade is to provide transport facilitation. 
Many Agreements and MOUs regarding transit trans port are drafted, some are signed. For example, 
Thailand is a party to the regional and sub-regi onal agreements, which are AFAFGIT, AFAFIST and 
GMS-CBTA. Moreover, Thailand has entered into b ilateral agreements with  Malaysia and Laos: 
MOU between Thailand and Malaysia on the Movement in Transit of Perishable Goods by Road from 
Thailand through Malaysia to Singapore and Agreement between THAILAND and LAO PDR on 
Road Transport respectively.  WT/TPR/M/255/Add.1 
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  SECOND BATCH OF REPLIES  
 
WTR/TPR/S/255 – Secretariat Report SUMMARY 
 
Paragraph 18:  Another area which runs counter to  Thailand’s open economy and export-led 
development is its approach to some agricultural policies, which tend to be oriented towards higher 
support levels for key commodities, such as rice.   
 
(Australia) Can Thailand provide advice on the rea sons it has changed its po licies regularly over the 
past decade noting this would appear to ha ve a significant impact on international trade? 
 
Answer The change of some agricultural policies is based on the policy of the new government, which aims to 
stabilize the price of rice and raise the living standa rd of rice farmers.  Rice is the major source of 
staple food for Thais and has played a significant role in Thai people’s livelihood and culture.  I. ECONOMIC ENVIRONMENT (1) I
NTRODUCTION  
(2) R ECENT ECONOMIC DEVELOPMENTS  
(3) M AIN MACROECONOMIC POLICY DEVELOPMENTS  
(i) Inflation and exchange rates (ii) Fiscal Policy 
(iii) Balance of payments  
(4) DEVELOPMENTS
 IN TRADE  AND  FOREIGN  DIRECT  INVESTMENT   
(i) Composition of merchandise trade (ii) Direction or merchandise trade (iii) Composition of trade in services 
(iv) Foreign direct investment (FDI)  
 
Paragraph 34:  Although Thailand's FDI framework is generally open in manufacturing, there 
remain significant restrictions on foreign-ownershi p in other sectors, particularly in services 
(Chapter IV).  Such restrictions, as well as regul atory hurdles, infrastructure bottlenecks, and skill 
shortages could have contributed to lower FDI inflow s over the past years, and suggest that there is 
room to improve the investment environmen t so as to enhance Thailand's international 
competitiveness.  According to the World Bank' s survey on the ease of doing business, Thailand 
ranked 19
th (out of 183 countries and territories) in 2010,  seven places lower than in 2009, but ahead 
of all other ASEAN countries, with the exception of Singapore.  Thailand scored well for protecting 
investors, trading across borders, and dealing with licences, but poorly for starting and closing a 
business, paying taxes, and getting credit. 13 
 
(Singapore) The Secretariat Report notes that th e significant restrictions on foreign ownership, 
particularly in the services sectors, have been a factor  in lower FDI inflows over the past years.  We 
would appreciate it if Thailand could provide an updat e on its plans to ease the restrictions, given 
that improvements in the investment environm ent would help enhance Thailand’s international 
competitiveness and encourage FDI inflow into Thailand.    
                                                      
13 World Bank online information, "Doing Business".  Viewed at:  
http://www.doingbusiness.org/rankings [20 April 2011].  WT/TPR/M/255/Add.1 
Page 72 
 
 
 
 
  Answer 
Under the Foreign Business Act, the Foreign Bu siness Committee shall review the business activities 
under the Lists attached to the Act at least once a year.  Paragraph 33-35:  FDI flows into Thailand dropped sharply, by 43.8%, between 2007 and 2010, 
owing in part to the impact of the global ec onomic downturn and domestic  political uncertainty, 
although they started to pick up in the second half of 2010.  The manufacturing sector remained the 
largest recipient, accounting for 47.5% of total FDI in flows in 2010 (Table I.5).  FDI was particularly 
targeted to export-oriented industries such as el ectrical appliances and machinery and transport 
equipment.  Other important recipients of FDI were  financial institutions, real estate, and mining and 
quarrying activities.  Japan continues to be the main  source of FDI (26.1% of total inflows), although 
its share declined during the revi ew period, especially in 2010 (Tab le I.5), followed by the EU and 
Singapore.  The share of FDI inflows from the United States dropped substantially, while that of 
Switzerland showed a strong increase.  FDI inflows from ASEAN, especially from Singapore, dropped significantly from 2007, mainly due to the global financial crisis and Thailand's political 
uncertainties.   
 
Although Thailand's FDI framework is generally op en in manufacturing, there remain significant 
restrictions on foreign-ownership in other sectors, particularly in services (Chapter IV).  Such 
restrictions, as well as regulatory hurdles, infrastru cture bottlenecks, and skill shortages could have 
contributed to lower FDI inflows over the past years,  and suggest that there is room to improve the 
investment environment so as to enhance Thailand' s international competitiven ess.  According to the 
World Bank's survey on the ease of doing business, Thailand ranked 19
th (out of 183 countries and 
territories) in 2010, seven places lower than in 2009,  but ahead of all other ASEAN countries, with 
the exception of Singapore.  Thailand scored well fo r protecting investors, trading across borders, and 
dealing with licences, but poorly for starting and closi ng a business, paying taxes, and getting credit.    
 Outflows of Thai direct investment abroad mo re than doubled during the period under review 
(Table I.6).  ASEAN as a group is the main destin ation, and its share increased from 33.5% to 51.3% 
between 2007 and 2010.  Within AS EAN, Singapore is by far the largest recipient, accounting for 
33% of total outflows of Thai direct investment abroad, followed by Myan mar.  The shares of the 
EU(27), the United States, and Japan have all decr eased during the period under review, albeit with 
some wide fluctuations in the case of Japan.  By contrast, outflows of Thai direct investment to 
Australia and Canada have shown strong increases.  China's share in total outflows of Thai direct 
investment abroad was 3.9% in 2010 (down from 9.7%  in 2009).  Overall, outflows of Thai direct 
investment abroad were directed to mainly mining and quarrying, manufacturing, trade, and financial 
institutions.  
(Korea) It has been reported that recent floodi ng damaged many multinational IT companies 
investing in Thailand. This seems to have had a ripple effect on the global economy as demonstrated 
by a surge in the prices of computer component s such as hard disk driv es. What are Thailand's 
estimates concerning the extent of damages and th e period of time which will be required to 
normalize the situation?  
Answer The damage from the disaster h as been estimated by the Office of National Economic and Social 
Development Board (NESDB) to exceed 8.1 billion US dollars or 2.32 percent of GDP.  The 
Government has decided to pursue a comprehensiv e relief and recovery plan and package (RRPP), 
which consists of four stages.   First is the Immediate Response Phase, whose focus is to provide immediate assistance to flood 
victims and to ensure safet y and security of property.  WT/TPR/M/255/Add.1 
 Page 73  
 
 
 
 
  Second is the Flood Assistance Phase during whic h the flood water level remains high. Measures 
include exempting duties and tax es on equipment imported to replace damaged facilities. Remedial 
and assistance measures for the seven flooded industria l estates would be implemented, with a view to 
restarting operations within 45 days. New distributi on centers will set up in various provinces.  In 
addition, low-interest credits with relaxed conditio ns will be provided for en trepreneurs and industrial 
estate developers.  
Third is the Post-Crisis Rehabilitation Phase wh ich focuses on rehabilitating all aspects of the 
economy and society to allow for a quick recovery.  Tax-related measures will be prepared to assist 
the post-flood rehabilitation for affected entrepreneur s, with special measures for key industries that 
have been heavily affected, such as the automob ile and electronics industries.  Farmers would be 
assisted in rehabilitating the agricultural sector. Fourth is the Long-Term Phase which will emphasi ze planning and preparation for water resource 
management and crisis management, to allow for effective management of natural disasters 
particularly floods in the long-term.  The key is to ensure that disaster preparedness, particularly for flooding, will be integrated into the design and build ing of industrial estates, transport networks and 
other supporting infrastructure such as electricity gr ids and water utilities.  The government also aims 
to develop a flood-proof industrial zoning plan to  protect workers, facilities and equipment.   
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 
The EU is pleased to note that Thailand has ratifie d 5 of the core ILO Conventions and one of the 
priority Conventions.   (EC) Would Thailand please indicate its intentions in relation to the ratification of the following core 
and priority ILO Conventions which it has not yet ra tified: Convention 87 on Freedom of Association, 
Convention 98 on Collective Bargaining, Convention 111 on non-discrimination, Convention 81 on Labour Inspection, Convention 129 on Labour Insp ection (Agriculture), Convention 144 on Tripartite 
Consultation? 
 
Answer  
Thailand has ratified 15 ILO Conventions, three of  which are core conventions (C.100 on Equal 
Remuneration, C.138 on Minimum Age and C.182 on Worst Form of Child Labour). The latest 
ratification was on 11 October 2007, of C.159 Voca tional Rehabilitation and Employment (Disabled 
Persons).  As for other conventions, Thailand is  currently undertaking studies of the matter.  
 
(1) O
VERVIEW  
 
Paragraph 5:  The Secretariat’s report gives an overview on Thailand’s investment regime, incl. on 
negative lists restricting levels of foreign direct investment in some activities. The restricted list of 
activities under the Foreign Business Act of 1999 (" FBA") covers a broad list of service businesses 
(20) which 'Thai nationals are not yet ready to comp ete with foreigners'. Category 21 of the List 3 
refers to 'Other categories of service business except that prescribed in the Ministerial regulations'.  
 
(Australia) We note the comment that ‘amendment of  certain legal provisions is under way to prevent 
foreign investors from using nominee shareholders or preferential voting rights to take control of 
Thai companies…’We would welcome further info rmation in which sectors these amendments are 
being considered and an indicative timeframe. (Australia)  In this regard, can Thailand reassure Members t hat it will, in accordance with Thailand’s 
Uruguay Round commitments under the General Agreem ent on Trade in Services (GATS), continue to 
extend national treatment and MFN to service suppli ers owned or controlled by persons of other 
members? WT/TPR/M/255/Add.1 
Page 74 
 
 
 
 
  Answer 
At present, the Foreign Business Act B.E. 2542 (1999)  has been in force. No amendment has been 
made. Thailand still remains committed to  its obligations under the GATS. 
 
(Australia)  We note the comment that "U.S. Investors rec eive preferential treatment, being exempt 
from most restrictions on foreign direct investment  under a 1966 treaty."  Can Thailand provide an 
explanation, including justification under WTO ru les, for the continued preferential treatment 
provided to U.S. investors under this treaty? 
 
Answer 
Thailand participated in the third review of the MFN exemptions in November 2010 and March 2011 
under the purview of the Council on Trade in Servi ces, and has provided our response concerning the 
treaty between Thailand and the US.  It appears that  the recent political changes in Thailand have led 
to a legal requirement to impose necessary procedur es prior to eventual legislative approvals that 
would finally lead to the commencement of international trade negotiations, as well as the implementation of the final results of negotiations.  These procedures require, inter alia , the conduct 
of a feasibility study of proposed free trade agreemen ts, public hearings, and parliamentary reviews.  
Pending the uncertainty on a constitutional setting, these steps in the procedures necessitate a new 
enactment of legal instruments and must be in  accordance with the constitutional requirements. 
 
(EC) How does Thailand reconcile this catch-all clau se in the FBA with a presumption of a negative 
list covering only some sectors for which Thailand is  not "ready to compete"? Would Thailand 
reconsider narrowing that list for sector s where Thailand is clearly competitive?  
 
Answer 
Under the Foreign Business Act, the Foreign Bu siness Committee shall review the business activities 
under the Lists attached to the Act at least once a year. 
 
(EC) Can Thailand elaborate what are the amendm ents of legal laws and regulations, beyond the 
FBA, already under way to prevent foreign investo rs using preferential voting rights controlling a 
Thai company?   Answer 
No amendment has been made. 
 
(EC) In its GATS commitments Thailand has not in general made national treatment restrictions 
limiting the use of preferential voting shares to cont rol a Thai company but on ly equity caps. What 
are the relevant existing provisions in the Thai  laws that do not allow Thai companies and Thai 
nationals to use preferential voti ng shares? How does Thailand reconcile these additional restrictions 
with the non-explicit justification fo r those under its GATS schedule? 
 Answer 
Thailand remains committed to the obligations under the GATS. 
 
(EC) The Thai-US Treaty of Amity and Economic relations of 1966 exempts US investment from the 
FBA restrictions. Can Thailand elaborate on the intended duration of the exemption and the conditions creating the need for the exemption? Can Thailand explain the intended follow up on this 
issue at the end of the WTO exemption, including  as regards extending this MFN treatment to all 
WTO members?  
  WT/TPR/M/255/Add.1 
 Page 75  
 
 
 
 
  Answer 
Thailand participated in the third review of the MFN exemptions in November 2010 and March 2011 
under the purview of the Council on Trade in Serv ices, and provided our response concerning the 
treaty between Thailand and the US, which remains in force.  Thus, the condition giving rights to the 
exemption still prevails.  It appears that the recent  political changes in Thailand have led to a legal 
requirement to impose necessary procedures prior to  eventual legislative approaches that would 
finally lead to the commencement of international trade negotiations, as well as the implementation of 
the final results of negotiations.  These procedures re quire, inter alia, the conduct of a feasibility study 
of proposed free trade agreements, public heari ngs and parliamentary reviews.  Pending the 
uncertainty on a constitutional setting, these steps in  the procedures necessitate a new enactment of 
legal instruments and must be in accordan ce with the constitutional requirements.  
 
(EC) Can the Thai government elaborate on how to reconcile the fact, on th e one hand, that Thai 
enterprises are, under the FBA, a ssumed not yet ready to compete with foreigners and the subsequent 
need to restrict foreign control of Thai compani es under the FBA, and the fact, on the other hand, that 
Thai companies have been succes sfully competing with US in vestors for the past 46 years?  
 
Answer The Thai companies can compete in only certain sp ecific service sectors.  The general hypothesis is 
that those services are labour-intensive and not or iented towards technology or capital intensive.  
Those sectors are evident in food and restaurants, spa and wellness, and tourism and entertainment.  
These is no correlation between competitiveness betw een those sectors specialized by the US and 
those specialized by Thailand.  
 
(New Zealand) Section II, paragraph 5 of the Secret ariat report indicates that "Amendment of certain 
legal provisions is under way to prevent forei gn investors from using nominee shareholders or 
preferential voting rights to take control of Thai companies in restricted sectors".  Please provide 
information on the nature of these proposed am endments.  Please also advise what specific 
regulations they would apply to and the timef rame for finalizing these proposed amendments. 
 Answer 
No amendment has been made. 
 (the Separate Customs Territory of Taiwan, Peng hu, Kinmen and Matsu) Given the continuous 
growth of its economy, why does Thailand not review  or reduce the number of restricted activities in 
its negative lists in order to further boost economic momentum? 
Answer 
Under the Foreign Business Act, the Foreign Bu siness Committee shall review the business activities 
under the Lists attached to the Act at least once a year.    
(the Separate Customs Territory of  Taiwan, Penghu, Kinmen and Matsu) Why does Thailand consider 
it necessary to further protect th e benefits of Thai stockholders through the amendment of certain 
legal provisions? 
Answer 
No amendment has been made. 
 
(the Separate Customs Territory of Taiwan, Penghu,  Kinmen and Matsu)  To which sectors do these 
legal amendments mainly apply? Were the opinions of foreign investors taken into account during the 
drafting of those provisions? WT/TPR/M/255/Add.1 
Page 76 
 
 
 
 
  Answer 
No amendment has been made. 
 Paragraph 13:  Overall, the Government's economic polic y continues to favour liberal, market-
based, private-sector-driven growth, with a more re cent additional focus on equity.  Competition is 
encouraged to ensure sufficient a nd sustainable economic growth in most sectors.  The strategy for 
"restoring Thailand's lost dynamism" - as the Intern ational Monetary Fund describes it - is to remove 
some of the constraints on economic activity in or der to encourage investment and reverse the sharp 
falls suffered since the 1990s.  The Government belie ves this should rely on exports, with domestic 
demand as a secondary means, not by promoting one sector over another, but by improving the 
environment for economic activity, widening its ge ographical scope, and then allowing business to 
decide whether to produce for the domestic or expor t market.  Government policy does nevertheless 
have some selective focus in promoting local and fo reign investment in competitive industries, giving 
priority to technological development and building up intellectual property, including for small and 
medium-size enterprises, and exports and services.  
 
(Mexico) We note that according to paragraph 13 of  the Report of the Secret ariat, the Government 
believes that domestic demand should be a secondary me ans of restoring Thailand's lost dynamism.  
We wonder whether in the wake of the international financial crisis, where one of the main problems 
was precisely the lack of demand in the ma in export markets and where the leading exporting 
countries tended to turn to their domestic markets,  Thailand has not reformulated its strategy to 
achieve that objective.  
Answer The government emphasizes importance on both exports and domestic market.  Its current objective is 
to bring about a strong and balanced economic stru cture for the country, which will be an important 
basis for sustainable growth with quality.  (2) G
ENERAL CONSTITUTIONAL AND INSTITUTIONAL FRAMEWORK  
(3) S TRUCTURE OF TRADE POLICY FORMULATION  
(4) T RADE POLICY OBJECTIVES  
 
Paragraph 18:  It has been noted in the Secretariat’s report that Thai trade policy has been 
susceptible to particular interests, political pressu re, the remnants of older important substitution 
policies or "conflict between upstream and downstream industries" and at times has resulted in delays 
in reform, including in the areas where do mestic companies dominate the markets.  
 
(EU) How does Thailand intend to address the pot entially negative perception stemming from the 
above on Thai trade policy development and the impact  on its trading and investment environment? 
Does the Thailand envisage any steps and prioriti es to address these domes tic pressures and ensuing 
reform delays?  Answer 
The government emphasizes importance on a close c ooperation between the public and private sectors 
so that relevant stakeholders can help the governme nt formulate policies which are balanced and take 
into account the benefits to all sides.  
  WT/TPR/M/255/Add.1 
 Page 77  
 
 
 
 
  (5) T RADE LAWS AND REGULATIONS  
(6) T RADE AGREEMENTS AND ARRANGEMENTS  
(i) Thailand and the WTO 
 
Paragraph 23:  The Secretariat’s report states that "Thaila nd accords at least MFN treatment to all 
WTO Members, but not necessarily to non-members. /…/".  
 
(EU) Can Thailand elaborate how 'granting at le ast MFN treatment to all' is reconciled with the 
MFN exemption of the Thai-US Treaty of Amity?   Answer 
Thailand participated in the third review of the MFN exemptions in November 2010 and March 2011 
under the purview of the Council on Trade in Servi ces, and has provided our response concerning the 
treaty between Thailand and the US.  It appears that  the recent political changes in Thailand have led 
to a legal requirement to impose necessary procedur es prior to eventual legislative approvals that 
would finally lead to the commencement of international trade negotiations, as well as the implementation of the final results of negotiations.  These procedures require, inter alia , the conduct 
of a feasibility study of proposed free trade agreemen ts, public hearings, and parliamentary reviews.  
Pending the uncertainty on a constitutional setting, these steps in the procedures necessitate a new 
enactment of legal instruments and must be in  accordance with the constitutional requirements. 
 
Pages 27-41:  The Secretariat’s report gives an overview on Thailand’s existing trade agreements and 
arrangements.  
 
Would Thailand elaborate on the extent to which,  and how, social and labour issues are addressed 
within each of the preferentia l agreements referred to in the Secretariat’s and the Government 
reports?  
Answer Thailand adheres to its obligations under internatio nal labour conventions, to which it is currently a 
party.    
(ii) Preferential, regional, and bilateral arrangements 
 
(India) Chapter II (6): Regarding Thailand’s Trad e Agreements and Arrangements, in respect of 
Thailand’s FTAs, could the Thai authorities indica te whether all the notifications, relating to the 
implementation of the FTAs, are issued in English language and placed in public domain? If so, would Thailand kindly provide details of all the notifications issued up to June 2011 and the web 
addresses where they are available in English? 
 
Answer 
Such information can be found in the relevant ag encies’ websites such as th at of the Ministry of 
Finance.    
 
(India)  Table II.3: In the Table, under ASEAN-India FTA, it is indicated that 16.30% tariff lines 
would be brought to zero tariff by Thailand on 1.1. 2011. Could the Thai authorities provide a list of 
these items?  
Answer 
Please find the information at www.thaifta.com.  WT/TPR/M/255/Add.1 
Page 78 
 
 
 
 
  Paragraph 27:  Beyond ASEAN, the picture of Thailand's free-trade agreements is complicated, 
sometimes simultaneously involving bilateral and regional deals (Chart II.2 and Table II.3). For 
example, Australia-Thailand trade is governed by  an agreement between the two countries as well as 
a pact between two groups in which each is a me mber:  Australia-New Zealand, and ASEAN. For 
businesses, the complexity can be baffling.  They may face additional costs going through the hoops to find out which agreement is most suitable for a particular transaction, to get hold of the right 
paperwork, and to obtain the correct clearance.  This may be one of the reasons why some of the 
agreements have been little used, a situation rec ognized openly by political leaders in at least one 
case: the free trade agreement between ASEAN a nd the Republic of Korea. The Asia-Pacific 
Economic Cooperation (APEC) group's 88-page 2008 study of 30 agreements involving its members 
(five involving Thailand) found that the agreements were similar in some areas, such as customs procedures, but diverged considerably in others, particularly rules of origin.  
 (China) Does Thailand have any plan to address the above-mentioned concern for the businesses? 
(China) Apart from the complexity factor, what  other reasons has Thailand identified for the low 
utilisation of some free-trade agreements? What kind of measures will Thailand take to help the 
businesses better utilise the free tr ade agreements in general? 
  
Answer 
The government has organized outreach programs in or der to educate the private sector on how to 
fully utilize the benefits accorded by preferentia l trade agreements.  The government also works 
closely with the private sectors in order to assist them in utilizing free trade agreements.    
 
Paragraph 36:  The Secretariat’s report refers to ATIGA coming into effect in May 2010 which 
includes, inter alia , commitments on non-tariff measures, trade facilitation, customs and 
standards/technical regulations. 
 
(EU) Could Thailand please indicate what con crete steps have been undertaken by Thailand and 
other ASEAN members on removing non-tariff meas ures by 2010 as foreseen in ATIGA? Similarly, 
could Thailand indicate the level of ASEAN integr ation in other areas such  as trade facilitation, 
customs and standards/technical regulations also covered under ATIGA? 
 
Answer 
Elimination of Non-tariff barriers in ASEAN 
To further promote Thailand’s trade and, in particular, trade with ASEAN, Thailand places 
importance in trade facilitation measures, including  elimination of non-tariff barriers among ASEAN 
ASEAN agreed to compile and review the Non-Ta riff Measures (NTMs) data in order to identify 
Non-tariff Barriers (NTBs) which were eliminated  according to agreed phrases as follows, (i) Brunei, 
Indonesia, Malaysia, Singapore and Thailand by 1 Ja nuary 2008, 2009 and 2010; (ii) the Philippines 
by 1 January 2010, 2011 and 2012;  and (iii) Cambodia, Lao PDR, Myanmar and Viet Nam by 1 
January 2013, 2014 and 2015, with flexibilities up to 2018. For Thailand, we have already identified 
and eliminated our NTBs according to the three tranches. Recognizing that NTBs is an on-going issue, ASE AN has agreed on further steps to tackle NTBs 
through various means: 
 Engaging in dialogues with regulators, the private sector and industry associations, starting with 
three priority sectors, i.e., automotive, elect ronics and textile to identify NTBs/barriers 
 Doing a stock taking and update the NTMs implemented by ASEAN, strengthening the 
notification and monitoring systems to effectively addressing NTBs.  
 Acknowledging that NTMs themselves can create barri er impact on trade, work programme will 
be developed to eliminate any unnecessary obstacle components in existing NTMs.     WT/TPR/M/255/Add.1 
 Page 79  
 
 
 
 
   Trade Facilitation 
On trade facilitation, as a member of ASEAN, Thailand has developed the system based on the 
framework under the ASEAN Economic Community Bl ueprint with a view to simplify, harmonize, 
and standardize trade and customs procedures a nd to facilitate related information flows.  
The implementation of these actions is expected to  lower transaction costs in ASEAN and thereby 
enhance competitiveness and facilitate the integratio n of ASEAN into a single market and production 
base.  
One of the top priorities under the ASEAN trade fa cilitation framework for Thailand is to complete 
the establishment of the national single window. Signifi cant progress in this area has been made and 
Thailand has also joined the ASEAN Single Window  Pilot Project in the third quarter of 2011. 
 Paragraph 42:  The Secretariat’s report states that ASEAN has accelerated integration in 12 priority 
product sectors, i.e. wood-based, automotive, rubbe r-based, textiles and apparel, agriculture-based, 
fishery, electronics, e-ASEAN, healthcare, air travel, tourism and logistics…and key measures are to 
be implemented within a timetable for the priority goods sectors.  
 
(EU) Could Thailand indicate the state of play on ASEAN integration in these product categories so 
far and the next steps foreseen in the "timetabl e" referred to in th e Secretariat’s report? 
 
Answer 
In 2010, ASEAN aimed to allow other ASEAN inv estors to hold equity up to 70 percent in ICT, 
healthcare, tourism and air travel.  
 
Bilateral arrangement  
Paragraphs 59 and 67:  It is reported that Thailand believes th at bilateral free trade agreements can 
be an effective catalyst for liberalization and even tually a building block for the multilateral trading 
system. Among the countries that have been c onsidered by Thailand for bilateral free-trade 
agreements are Chile, Pakistan, Papua  New Guinea and Hong Kong, China.  
 
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) What are Thailand’s main 
considerations in selecting potential future FTA partners?  Answer 
Thailand believes that retaining our level of trade an d investment liberalization is one of the ways to 
maintain our level of growth than jumping on the protectionist train. We have negotiated free trade 
agreements (FTAs) with 8 countries and is a membersh ip to 2 economic blocs. Our priority is to show 
our will in concluding the Doha  round negotiation and initiate new negotiations with potential 
economies like GCC, Mercosur or Chile.  In selec ting FTA partners, Thailand considers the existing 
markets and at the same time looks at the potentia l future markets, among others, as a gateway to the 
region.  These approaches are aimed to strengthen a nd deepen Thailand’s trade relationship with both 
old and new markets.    
(7) T
RADE DISPUTES AND CONSULTATIONS  
(i) Dispute settlement under the GATT/WTO 
(ii) Other  
Paragraph 71:  Thailand maintains a relatively open foreign investment regime.  It views foreign 
direct investment (FDI) as vital to the economy's growth, and encourages investors from all sources;  FDI inflows have remained robust during the period under review (Chapter I), and Thailand is ranked 
a high 19th in the World Bank's Doing Business 2011  report and is well-placed in UNCTAD's World WT/TPR/M/255/Add.1 
Page 80 
 
 
 
 
  Investment Prospect Survey 2010–12 . The downside is that it has among the most stringent limits on 
foreign equity holding, according to another Worl d Bank publication with the majority of sectors 
compared subject to restrictions.  Sectors fully open to foreign capital participation include light 
manufacturing, pharmaceutical products, and food  products.  The Foreign Business Act B.E.2542 
(1999) lists sectors and business activities where fo reign ownership must be below 50%, although in 
some cases this can be raised with special permission.  Some restrictions are contained in laws 
specific to the sector, for example telecommunications.  
 
(Mexico) According to paragraph 71, the Forei gn Business Act lists sectors and business activities 
where foreign ownership must be below 50 per cent, although in some cases it can be raised with 
special permission.  What are the criteria for obtaining this special permission, and to what sectors has this permission been granted? 
 
Answer 
Section 5 of the Foreign Business Act provides fo r the criteria in granting such permission.  In 
permitting foreigners to operate under the Act, the fo llowings are to be taken into account: advantages 
and disadvantages to the nation’s safety and security , economic and social development, public order 
and good moral, art, culture and tradition of the co untry, natural resource conservation, energy and 
environment, consumer protection, size of enterp rise, employment, technology transfer, and research 
and development.  
(8) F
OREIGN INVESTMENT REGIME  
(i) Recent developments 
 Paragraph 71:  The Secretariat’s report indicates that d espite Thailand’s relatively open foreign 
investment regime, Thailand has "among the most st ringent limits of foreign equity holding" with 
"the majority of sectors subject to restrictions".  
 
(EC) Regarding negative lists of restricted activities,  can Thailand confirm that all the other activities 
which are not mentioned are free to be offered (i.e ., not restricted)? If not, would it be possible for 
Thailand to list any other sectors not covered by the FBA which contain similar restrictions? 
 Answer 
The lists also include a cate gory of all other businesses. 
 
(Singapore) The Secretariat Report states that th e Foreign Business Act B.E.2542 (1999) lists sectors 
and business activities where foreign ow nership must be below 50%, a lthough in some cases this can 
be raised with special permission.  We would ap preciate it if Thailand could clarify the conditions 
under which foreign ownership can be raised, and elaborate on the process of getting special 
permission.  
 Answer 
Section 5 of the Foreign Business Act provides fo r the criteria in granting such permission.  In 
permitting foreigners to operate under the Act, the fo llowings are to be taken into account: advantages 
and disadvantages to the nation’s safety and security , economic and social development, public order 
and good moral, art, culture and tradition of the co untry, natural resource conservation, energy and 
environment, consumer protection, size of enterp rise, employment, technology transfer, and research 
and development.  Paragraph 72:  During the period under review, foreign investors were more concerned about 
political instability and unpredictability and less abou t some of the issues such as infrastructure and  WT/TPR/M/255/Add.1 
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  the energy outages that featured in the previous review.   Among the concerns about uncertainty 
raised were a 2009 court decision to halt temporarily dozens of large-scale projects in Map Ta Phut, 
the country's biggest industrial zone;  and the repeated postponement of the auction for third-generation mobile-telephony licences.  Other w eaknesses in Thailand's investment environment 
include low education levels and a shortage of su itably qualified workers, infrastructure bottlenecks, 
particularly in and around Bangkok and the eastern seaboard, intellectual-property rights violations, 
and red tape.  
 
(China) What kind of measures will Thailand take to  improve its business environment and to further 
attract FDI in the short and middle term?  Answer 
The government is currently working closely with the private sector in order to resolve such concerns.  
 
(EU) Can Thailand provide an update on the Map Ta Phut case? Can Thailand indicate what actions 
does it intend to take to lessen concerns of foreign investors of this  kind in the future? 
 
Answer The Supreme Administrative Court is currently considering an appeal submitted by 76 projects which 
the lower courts ordered to suspend.   
 
(ii) Basic framework 
 
Pages 43-44  (EU) Can Thailand confirm that economic activity  undertaken in relation to a new or existing 
investment respects Thailand's national labour law,  the fundamental rights at work as embodied by 
the ILO's 2008 Declaration on Social Justice for a Fair Globalisation and the 8 core ILO 
Conventions (nos. 29, 87, 98, 100,  105, 111, 138 and 182)? How do es Thailand ensure that these are 
in fact respected?  Answer 
Thailand remains committed to its obligations under the international labour conventions to which it 
is a party.  
 Paragraph 75:  In early January 2007, despite widespr ead opposition from foreign investors, the 
Government approved plans to amend the FBA to  include voting rights as another criterion for 
determining which juridical persons are foreign in  restricted sectors.  The proposed amendments 
covered the definition of "foreigners", punishmen t/penalties, and the "List 3" businesses in which 
Thais are not competitive (see also Chapter IV(1)(i)).   Although the changes are not as far-reaching as 
initially expected, the move seems to have compounde d investor concerns over the unpredictability of 
policy.  Companies that seek or have already r eceived Board of Investment promotion will not be 
subject to the proposed ownership rule revision, excep t in those activities specified in List 1 where the 
Foreign Business Act requires Thai majority owners hip, and in activities that fall under specific laws 
such as telecommunications, and marine, air, and la nd transport.  Currently, seven categories covering 
over 273 activities in both manufacturing and services are eligible for BOI promotion.  
 
(Japan) According to the revised offer from Tha iland, foreign equity participation in Mode 3 on 
International Freight Transport must not exceed 49 per cent of the registered capital. Japan would 
like to know the prospects for elimination or relax ation of restrictions on foreign equity participation 
in Mode 3 on International Freight Transport. In the event that Thailand plans to maintain the WT/TPR/M/255/Add.1 
Page 82 
 
 
 
 
  restrictions on foreign equity participation, Japan  would like Thailand to explain the reason. Japan 
would also like Thailand to explain the details of exception to the restrictions on foreign equity 
participation, if any.  Answer 
Thailand still has not considered any amendments in the near future.  
 
(iii) International agreements  
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
(EU) Would Thailand explain what it is doing to  help its producers: a) produce goods which are 
environmental and socially sustainable and b) a ccess niche markets oversea s through adherence to 
voluntary sustainability standards (for exampl e, Fair Trade, UTZ Certified, Global G.A.P.)?  
 Answer 
Thailand emphasizes importance on its environmenta l and social sustainability policy.  Several 
agencies work together in order to strengthen this policy, including the Department of Export 
Promotion, the Department of Trade Negotiations , and the Office of Small and Medium Enterprises 
Promotion.  
(1) 
INTRODUCTION  
 
Paragraph 10:  The Secretariat’s report indicated that the Thai excise system comprises many 
different rates on various goods and services.  
 
(EC) The Thai government appears to classify wh iskey, vodka, etc. (distilled liquor) as spirits and 
imposes a higher tax on them than on Thai white liquor (so-called, "Lao Kao") and other local mixed spirits which are competing spirits products yet  classified under a different category. Can Thailand 
confirm this and also clarify and explain which Thai and foreign produced alcoholic beverages are 
considered as (i) special spirits, (ii) alcohol mixt ures and (iii) white liquor within the meaning of the 
Thai liquor Act and other implementing regulations and decrees?  Answer 
White spirit (or Lao Kao) is distilled spirit with no additives with the alcohol content lower than 80 
degrees, currently subject to an ad valorem rate of 50% or a specific rate of 120 baht per litre of pure 
alcohol, whichever is higher.  Wh iskey and vodka are categorised as special spirits, currently subject 
to an ad valorem rate of 50% or a specific rate  of 400 baht per litre of pure alcohol, whichever is 
higher.  The Ministry of Finance is now consid ering raising an excise rate for white spirit.  
 
(EC) The same kind of differential treatment is ex perienced by wines compa red to other fermented 
beverages. It has been reported that grape fermente d beverages, i.e., wines are subject to a 60% rate 
or 100 THB per litre of pure alcohol excise duty (which ever is higher), whereas other local fermented 
beverages under the heading "traditional fermented liquor " are only subject to a 25% excise duty rate 
or 70 THB per litre of pure alcohol (whichever is higher). Can Thailand confirm this? Please 
elaborate and explain the rationale for applying the tax at these levels for wines and other fermented 
beverages? Could Thailand reconcile  this differential tax treatment with the Thai obligations under 
Article III of the GATT 1994?     
  WT/TPR/M/255/Add.1 
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  Answer 
Wines and sparkling wines made of 100% grape, both domestically produced and imported, are 
subject to the same excise tax rates.  Likewise,  domestically produced and imported fruit wines are 
subject to the same tax rates. 
 
(EC) There are concerns that Thailand maintains a differentiated licensing system for sellers of local 
spirits and sellers of all spirits (which include both local and imported), with the license fees charged 
for selling domestic spirits being lower than tho se for all (imported) spirits. Could the Thai 
authorities explain the rationale for this tax inequalit y in the licensing fees for distribution outlets in 
the (i) retail and (ii) wholesale markets? Could Thai land reconcile this differential tax treatment with 
the Thai obligations under Article III of the GATT 1994? 
 Answer 
Alcohol selling license fee for alcoholic beverage ma nufactured in Thailand is cheaper than alcohol 
selling license fee for other alcoholic beverages.    
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures  
(ii) Tariffs  (a) Applied MFN rates 
 
Paragraph 25:  Changes to statutory rates require legisl ative approval, while applied rates (or 
temporary/adjusted rates) may be modified by the Minister of Finance without Parliament's approval, 
subject to Cabinet consent;  the Minister, with the approval of the Cabinet, may also charge "special 
duty" for any goods at a rate not exceeding 50% of  the relevant rate in the Tariff Schedule.  
 (Mexico) What criteria are used to  determine whether a product is eligible for this "special duty"? 
(Mexico) During the period under review, what products were subjected to this duty? Is this duty also 
applied to products produced in Thailand? 
 
Answer 
Thailand has no longer imposed "Special Duty" on import goods. 
 
(b) MFN tariff bindings 
(c) Duty-free items 
(d) Non- ad valorem duties 
(e) Special duties (or import surcharges) (f) Tariff quotas (g) Tariff averages (h) Tariff dispersion 
(i) Tariff escalation 
(j) Tariff reduction and exemptions (iii) Other charges affecting imports  (a) Import licensing and prohibition (b) Import quotas 
(iv) Contingency measures 
(a) Safeguards  Import licensing Import prohibition 
 
 WT/TPR/M/255/Add.1 
Page 84 
 
 
 
 
  (v) Non-tariff border measures  
 
Import licensing and prohibitions 
 
Paragraph 47:  The legal authority for regulating imports  is the Export and Import Act B.E. 2522 
(1979).  This gives the Minister of Commerce the pow er to restrict imports with Cabinet's approval 
for economic stability, public interest, public health , national security, peace and order, morals, or for 
any other reason in the national interest.  Imports may be prohibited "absolutely" or "conditionally".  
In the latter case (e.g. those requiring non-automa tic licensing), they are allowed if specified 
conditions are satisfied.  Various other laws incl ude import restrictions.  Under the Investment 
Promotion Act, the Board of Investment may ask the Ministry of Commerce to ban imports of goods 
competing with those produced by a domestic industry,  if the Board is of the view that other forms of 
protection are not sufficient to assist the industry.  Imports may also be prohibited under the various 
laws in place for health and safety reasons.  
 
(EC) Why are imports of industrial nitrocellulo se with no defence applications governed under the 
Ammunition Act of Thailand and subject to non-autom atic import license from Ministry of Defence 
when the product is used for industrial and co mmercial applications only ? What are the specific 
criteria (safety, transportation, storage and handlin g) for application and granting import licences? 
On what basis are requests for these licences denied?   Answer 
Industrial nitrocellulose can be used to build e xplosives; therefore, they are governed under the 
Ammunition Act B.E. 2530. 
 
(India) Can Thailand be pleased to justify the above actions? Whether these actions are not in 
violation of Article XI of GATT 1994 an d Agreement on Import Licensing Procedures? 
 
Answer According to Section 5 of the Export and Import of Goods Act, B.E. 2522 (1979), the Minister of 
Commerce with the approval of the Cabinet has an  authority to publish the notification in the 
Government Gazette to ban, to require for the permission, to prescribe any categories / kinds / 
qualities / standards / quantities / brands / origins / special fees, etc., of any import and export goods 
in any cases where it is necessary for economic stab ility, public health, national security, peace and 
order, good morals of any other interests of the state. These actions are not in violation of Article XI of GATT 1994 and Agreement on Import Licensing Procedures.  
Answer by BOI 
The Investment Promotion Act Section 50 has never been invoked. The Board of Investment does not have the authority to impose the measure; the measure  is under the consideration of the Ministry of 
Commerce under the Import-Export Licensing Act 1979.   
(vi) Technical measures 
 
Paragraph 53:  Several bodies are responsible for different  aspects of technical regulations and 
standards in Thailand:  
The Thai Industrial Standards Institute (TISI), unde r the Ministry of Industry, is responsible for 
developing national standards, certification, mon itoring the quality of pr oducts (including food 
products) and services, international cooperation (b ilaterally and multilaterally), and establishing a 
national single network on standardization.  The In stitute was established in  1969 under the Industrial 
Product Standards Act BE 2511 (1968);  WT/TPR/M/255/Add.1 
 Page 85  
 
 
 
 
  The National Bureau of Agricultural Commodity an d Food Standards (ACFS), under the Ministry of 
Agriculture and Cooperatives, is responsible for developing food standard s to protect consumers 
against health hazards from food consumption, u nder the Food Act B.E. 2522 (1979);  accreditation of 
certification bodies;  international coope ration;  and food standards control; 
The Ministry of Commerce is responsible for polic y and legislation on metrology while the National 
Metrological System Development Act, B.E.2540  (1997) established the National Institute of 
Metrology (Thailand), in the Ministry of Scie nce and Technology, which is responsible for 
implementation; and The Office of the National Accreditation Council of Th ailand, the Department of Medical Service, the 
Department of Science Service, and the ACFS are responsible for accreditation of organizations for 
conformity assessment. 
 
(India)  The Thailand is requested to provide an answe r as to the reasons for not harmonising the 
standard setting Agencies.  In fact, contrary to four  Agencies reported in the Secretariat Report, India 
has information on as many as ni neteen (19) Agencies that are responsible for TBT regulations in 
Thailand.   India would like to know the reason behind such a high number of Agencies.  
 
Answer TBT regulations generally cover ve ry broad scope of products and objectives; therefore, they are 
administered by different agencies.  Nevert heless, they have worked closely together. 
 
(New Zealand) The Secretariat’s report (para 55) notes t hat Thailand is a participant in Part 1 of the 
APEC EEE MRA, but not Part 2, on mutual acceptan ce of test reports.  Does Thailand plan to join 
Part 2, and if so, when? 
 Answer 
Thailand is currently studying this matter.  
 
Paragraph 56:  The WTO enquiry point for technical regula tions relating to indus trial products is 
the TISI, and for food and agricultural products it is  the National Bureau of Agricultural Commodity 
and Food Standards (ACFS).  Thailand has accepted the Code of Good Practice for the Preparation, 
Adoption and Application of Standards in Annex 3 of the TBT Agreement. From 1 January 2007 to 
31 May 2011, Thailand made 189 not ifications to the WTO Committee on Technical Barriers to 
Trade (including addenda and corrigenda) with an  additional 11 by the EU giving unofficial 
translations of the details of some notifications by Thailand.  Most of the notifications were for 
measures to address safety or environmental protection.  Thailand is an active member of the TBT Committee.  Since 1 January 2007, along with other Members, it has raised concerns about measures 
taken by the EU on: proposed measures affecting the fire performance of construction materials;  the 
registration, evaluation and authorization of chemic als (REACH);  dangerous chemical substances;  
the classification, labelling, and packaging of s ubstances and mixtures;  accreditation and market 
surveillance relating to the marketing of products;  as well as measures by Brazil on toys.  Thailand 
has also replied to other Members' concerns on sev eral issues, including:  labelling requirements for 
snack food; mandatory certification of steel produc ts; and health warnings on alcoholic beverages.  
 (Australia) We note that reference  to "health warnings on alcoholic  beverages".  We would welcome 
an update on the Thai government’s considera tion of the proposed labelling measures.  
 Answer 
Relevant agencies are still studying  and consulting this matter.  
 WT/TPR/M/255/Add.1 
Page 86 
 
 
 
 
  (Chile) Thailand notified a proposed regulation that would require alcohol beverage labels to include 
warning statements and photo images. Pictures of disea sed livers, a bloody traffic accident, a suicide, 
and a man hitting his wife have been proposed, along with text such as, "Alcohol consumption could 
harm you, your children and your family." At leas t 50 % of one side of square shaped packaging, or 
30 % of round or cylindrical shape d packages, must be allocated for the warning statements and 
images. 
The overseas manufacturers will be required to print the warnings on all bottles they export for sale 
in Thailand, which adds to production costs. We believe that the policy act as a barrier to international trade. Please clarify on this point.  Answer 
The National Alcoholic Beverage Policy Committe e has appointed a subcommittee to study the 
impact of health risks and potential dangers  the draft notification ( pictorial warning label on alcoholic 
beverages ). 
 
Sanitary and phytosanitary measures 
 
Paragraph 62:  Responsibility for sanitary and phytosanitary  measures are divided between a number 
of government agencies:  
The National Bureau of Agricultural Commodity and Food Standards (ACFS) is responsible for 
setting standards for agricultural systems, commo dity and food items and food safety;  for 
accreditation of certification bodies;  for food standa rd controls;  and for promoting compliance with 
standards on farms and in food establishments; 
Animal health and imports of some animal produc ts are the responsibility of the Department of 
Livestock Development, and the Department of Fisheries in the Ministry of Agriculture and Cooperatives;  Plant health is the responsibility of the Department of Agriculture in the Ministry of Agriculture and 
Cooperatives;  and  
Food safety is the responsibility of the Food and Drug Administration (FDA) of the Ministry of Public 
Health.   
 
(India) The Thailand is requested to provide an answer as to the reasons for not harmonising the 
standard setting Agencies under the SPS standards.  In fa ct, contrary to four Agencies reported in the 
Secretariat Report, India has information on as many  as eight (08) Agencies that are responsible for 
SPS standards/regulations in Thailand.   India would like to know the reason behind such a high number of Agencies.   Answer 
SPS regulations generally cover very  broad scope of products and objectives; therefore, they are 
administered by different agencies.  Nevert heless, they have worked closely together.  
 Paragraph 71:  The Secretariat’s report mentions that "All food products for public consumption 
must carry a label in Thai providing basic information on the product/.../".  
 (EC) Could Thailand clarify whether the Thai labe l must be affixed before distribution in the market 
or before importation in the country?  Answer 
In Thailand the label of food shall comply with labelling requirement under Notification of Ministry 
of Public Health No. 194 / 2543(2000) Re: labels. It  needs general information such as name of food, 
food serial number, name and address, net content et c. If food product needs to show nutrition claim,  WT/TPR/M/255/Add.1 
 Page 87  
 
 
 
 
  it shall be complied with Notification of Ministry of Public Health No. 182/ 2541(1998) Re: Nutrition 
labelling. For some snack food product shall require to  label comply with Notification of Ministry of 
Public Health. 305/2550(2007) Re : Labelling of Some Snacks Food. No other additional food 
labelling is required.  
 
(3) M EASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation procedures 
(ii) Export taxes, charges, and levies 
 
Paragraph 77:  The Secretariat’s report states that "U nder the Customs Act B.E, 2469 (1926) and 
the Customs Tariff Decree B.E. 2530 (1987), expor t taxes may be levied on a number of products, 
including hides of bovine animals, wood, rice, metal scrap, rubber, raw silk and silk yarn, and certain 
fish (Table III.4). Export duties consist of statutor y rates and applied rates; applied rates involve both 
specific and ad valorem duties. In January 2011, specific export duties were levied on certain by-
products of animal hides, while certain w ood and sawn wood products were subject to ad valorem 
export duties. Although applied rates tend to be lo wer than statutory rates, the persistence of 
relatively high statutory rates on key export products (e.g. rice and rubber), imparts an element of 
uncertainty in Thailand's trade regime, as export ta xes could be reintroduced up to the level of the 
statutory rate. Furthermore, the imposition of expor t taxes could constitute a form of assistance to 
domestic downstream industries and, if they were a pplied to products Thaila nd is a major supplier of, 
could exacerbate world price fluctuations."  
 
(EC) Could Thailand please indicate whether ther e are any plans to eliminate the export duties 
currently in place, in particular for the products for which the applied rate is zero? What is the 
reason for which Thailand maintains such stat utory rates, even when there are no export duties 
applied? As regards agricultural g oods subject to export restrictions, could Thailand justify why the 
measures are applied on those products?  
Answer Thailand’s trade policy has been g eared towards promoting exports by limiting export control to a 
minimum and most products can be exported freely.   Export duty is imposed only on two products, 
namely raw hides and wood, in order to ensure sufficient domestic supply and to protect natural 
resource.   
 
 
(iii) Export prohibitions, restrictions, and licensing 
(iv) Export assistance and incentives  
Paragraph 87:  Under the Tax and Duty Compensation of Exported Goods Produced in the Kingdom 
Act B.E. 2524 (1981), exported goods manufactured in  Thailand are eligible for tax coupons, which 
may be used to pay taxes and duties.  Tax and duty compensation for exports is set as a fixed 
percentage of the f.o.b. value and is calculated on both the proportion of raw materials/inputs used for 
production (according to the NESDB input/output Table), and their average tariff.  In order to 
minimize the risk of over- or under-compensation, th e compensation rate is regularly adjusted to 
reflect changes in the input/output ratio and the tari ff rates on inputs.  Items that are not eligible for 
tax coupons include minera ls, goods subject to export duties or fees, goods exported as samples, and 
other goods declared as not eligible by the Comm ittee for Tax and Duty Compensation of Exported 
Goods Produced in the Kingdom.  According to the au thorities, this programme aims to facilitate tax 
compensation, and the compensation provided mu st comply with the criteria and conditions 
prescribed in the 1981 Act.  The authorities also indicated that compensation rates ranged from 0.01% 
to 3.86% in 2009.   WT/TPR/M/255/Add.1 
Page 88 
 
 
 
 
   (Chile) Samples with no commercial value are nor mally admitted duty-free. However, why shipments 
arrive to Thailand as "samples" (we know the case  of wine) with no commercial values are dutiable 
even though as it’s not meant to be sold to the 3rd party?  
 Answer 
Samples of merchandise, fit only to be used as such and of no commercial value. Terms and 
conditions;  (1) Samples of merchandise must be marked "SAMPLE" "NOT FOR SALE" "TESTER"  
"DEMONSTRATION" or any other text that has the same meaning and in a location where the ink is 
not likely to wear off.   (2) Samples of merchandise must be torn, perforated or otherwise treated so 
that they are unsuitable for sale or for use other than as samples.   (3) Made into a piece of goods as 
brochure which fit only to be used as samples.  (4) Imported in suitable quantities that fit only to be used as samples; unsuitable for sale or for use other than as samples which in accordance with facts of 
goods, type of business. 
 
(v) Export financing and insurance 
(iv) Export assistance and incentives (v) Export financing and insurance  
(4) O
THER MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Taxation (a) Direct taxes (b) Indirect taxes 
 
Excise duties  
 
Paragraph 105:  The Secretariat’s report notes that, in some cases, "different excise duties are 
imposed on similar products, for example, some distil led spirits ("special spirits") have an excise duty 
of THB 400 per litre of pure alcohol, while alcohol mi xtures are taxed at THB 300 and white spirits at 
THB 120 per litre of pure alcohol. However, according to the Thai authorities, duties on alcoholic 
beverages are currently under reform with the ob jective of promoting transparency and equity."  
 
(EC) The EU is concerned about the loss of comp etitiveness of its industry due to this excise tax 
inequality, since both Thai white liquor and Thai mixed spirits are IN competition with spirits such as 
whiskey, vodka, etc. in the Thai market. Could Thailand please report on the current status of the 
alcohol tax reform? Please also describe the steps it is taking, if any, including timeline foreseen, to 
ensure that excise taxation is applied uniformly to all alcoholic beverages and does not discriminate 
against imported products?  Answer 
The Ministry of Finance is now considering raising an excise rate for white spirit.  
 
Paragraph 103-104:  Excise duties are an important source of government revenue contributing over 
a quarter of the total tax take.  The range of goods subject to excise duties is quite broad, covering 22 
different categories, including telecommunications services and ozone depleting substances as well as 
alcohol, cigarettes, cars, and motorcycles.  
The rate of excise duty varies from one product to another and may be ad valorem , specific, or the 
higher of an ad valorem  or a specific duty.  The ad valorem  rates can be as high as 90% (for 
cigarettes).  The excise duty on cars varies depending on several factors including engine size, power, and type of fuel.  Ad valorem  excise duties are based on the c.i.f.  value of imports plus import duties 
and additional fees.  Excise duties on domestic production are based on the ex-factory price of the goods or gross receipts of the service.  (Australia) Thailand’s vehicle excise regime is complex and heavily favours categories of vehicles  WT/TPR/M/255/Add.1 
 Page 89  
 
 
 
 
  domestically manufactured in Tha iland (ie: pick-up trucks) and penalises imported vehicles. (This 
issue has been raised by Australi an automotive vehicle manufacturers) 
The Thai Government has recently announced that it is reviewing its automotive vehicle excise 
regime, with a view to moving to a regime that a ligns excise duty rates to CO2 emissions, thus moving 
away from the current system that  is aligned to engine capacity. 
 
What is the current status of the review? 
 Answer 
In order to simplify the complication of the excise tax structure of motor vehicles and to reduce the 
number of excise rates, the Excise Department ha s the policy to revoke excise tax subject to the 
number of cylinders.  This is because such principle does not support alternative energy in an efficient 
and concrete manner, nor does it s upport new technology.  Vehicles with high engine placement with 
efficient technology may save more energy than th ose with small engines.  The proposed excise tax 
structure which is based on CO2 and pollution em ission is now under the consideration of the 
Ministry of Finance and relevant agencies.  However, to implement these new excise rates, the Department will take into account the period the ma nufacturers can equally adjust to the changes.  
 When will the findings be published?  Answer 
Such review is under the consideration of th e Ministry of Finance and relevant agencies.  
 (New Zealand) The Secretariat’s report (page 76) not es that: "It would appear that, in some cases, 
different excise duties are imposed on similar products,  for example, some distilled spirits ("special 
spirits") have an excise duty of B 400 per litre of pu re alcohol, while alcohol mixtures are taxed at B 
300 and white spirits at B 120 per litre of pure alcoho l.  However, according to the authorities, duties 
on alcoholic beverages are currently under reform with the objective of promoting transparency and 
equity." New Zealand welcomes Thailand’s indi cation that duties on alcoholic beverages are 
currently under reform with the objective of prom oting transparency and equ ity. What reforms are 
being contemplated and in what timeframe would they occur?  Will the reforms include changes to the 
current excise system for wine and local fermented spirits, including fruit wine?  
Answer The Ministry of Finance is considering raising an excise rate for white spirit. 
 
Paragraphs 104-105:  The rate of excise duty varies from one product to another and may be ad 
valorem , specific, or the higher of an ad valorem  or a specific duty.  The ad valorem  rates can be as 
high as 90% (for cigarettes). The excise duty on cars varies depending on several factors including 
engine size, power, and type of fuel.  Ad valorem  excise duties are based on the c.i.f. value of imports 
plus import duties and additional fees.  Excise duties on domestic production are based on the ex-factory price of the goods or gross receipts of the service.  
It would appear that, in some cases, different excise duties are imposed on similar products, for 
example, some distilled spirits ("special spirits")  have an excise duty of B 400 per litre of pure 
alcohol, while alcohol mixtures are taxed at B 300 a nd white spirits at B 120 per litre of pure alcohol.  
However, according to the authorities, duties on al coholic beverages are currently under reform with 
the objective of promoting transparency and equity.  
(Australia) We note the comments that "exci se duties on cars vary depending on several factors 
including engine size, power and type of fuel ."  Could Thailand provide an update of recent 
developments to support domestically-produced cars,  including tax rebates under the "first-car WT/TPR/M/255/Add.1 
Page 90 
 
 
 
 
  buyers' scheme" and lower excise rates for domes tically-produced cars under the "Eco-Car 
program"? 
 Answer 
The current excise tax structure is based on types of vehicles, for instance, sedan, pick-up (double 
cab) and PPV, etc.  The excise tax is collected based on the engine size.  Eco-cars, both domestically 
produced and imported, are taxed at the same rate of 17 percent.  
The First Car Buyer Scheme provides financial assist ance to first-time car buyers based on the excise 
tax paid by the manufacturers, not an excise tax reba te.  Under this scheme, those eligible must never 
have purchased a vehicle before, and the vehicles cont ain high fuel efficiency with the engine size no 
more than 1,500 cc.  
 
(Australia) We note the comments that ‘"…in so me case, different excise duties are imposed on 
similar products…." and examples concerning alcoholic  beverages.  We also note the comment that 
"...according to the authorities, duties on alcoholic  beverages are currently under reform with the 
objective of promoting transparency’.  We would welcome further inform ation on these reform 
initiatives. 
 
Answer 
The Ministry of Finance is considering raising an excise rate for white spirit. 
 
(Chile) Given the current tax structure, the import ta riff rate is 54%, excise tax 60%, municipal tax 
10%, health tax 2%, broadcasting support tax 1.5% and VAT 7%. The followings are the steps used in 
calculating all duties levied on imported wine: 
  C I F  i n v o i c e :        1 0 0   B a h t  Import Tariff:   100 * 54%   54  Baht   
Excise Tax: (100 + 54) * 0.60/ 1- (1.1 *0.60)  271.7647 Baht 
Health Tax:  271.7647 * 2%    5.44  Baht Multicipal Tax: 271.7647 * 10%    27.18  Baht Broadcasting support tax:      271.7647 * 1.5%   4.08  Baht VAT:         7% (100+54+271. 7647+5.44+27.18+4.08)  34.64  Baht 
Total price:       497.10  Baht 
 Effective Duty and Tax Burden:     397.10  Baht  (Chile) Under international trade law, nationa l treatment is a concept whereby countries must 
provide equal treatment between local and foreign- produced goods once imports enter the national 
market.  Under current Thai excise tax, foreign spir its such as vodka, gin and blended spirits are 
assessed a rate equivalent to 400 baht per litre based on 100 degrees proof. Local white spirits in 
contrast are taxed at a rate of 120 baht per lit re based on 100 degrees proof. Why local white spirits 
and foreign spirits are not taxed at the same rate?   
Answer For taxation purposes, same products are taxed similarly.   
 
(Chile)  Due to high tax rates, smuggling of alcohol exists throughout neighbouring countries and it has cost Thailand 100 billion of baht per year. W ould it be more effective if Thailand lower the tax 
rate, so that the amount of smuggling would be reduced?  
  WT/TPR/M/255/Add.1 
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  Answer 
The smuggling problems are to be resolved by law enforcement.  
 
(c) Transparency 
(ii) Investment incentives  
Paragraphs 109-116   
(EC) With regard to the tax-related incentives under the BOI, could Thailand please explain in 
greater detail the investment-related incentives und er the Eco cars program which granted, inter alia, 
a reduced excise tax to domestically-produced but not imported cars meeting identical environmental 
and other criteria?  
 
Answer 
The same rate of excise tax is applied to both domestically-produced and imported cars. 
 
(EC) Could Thailand elaborate on previous and cu rrent government industrial policy on promoting 
Thailand as an international hub and export base fo r eco-cars and what is the minimum production 
criterion in terms of manufactured units per year for eligibility to tax in centives and lower excise duty 
rate under the Board of Investment eco-car scheme?   Answer 
Since 2003, Thailand has been actively promoting Thailand as the Detroit of Asia, the automotive 
hub. However, the eco-car scheme was only introduc ed for a short period of time (from 15 June-30 
November 2007) to serve the country’s conserva tion and environment friendly policy and is now 
expired before the period of review. This sch eme is no longer in use. The minimum production 
requirement under this scheme was not less than 100,000 units  per year from the fifth year and 
onwards. Excise tax for eco-car is the same for BOI-promoted and Non-BOI promoted. (Correction 
from the answer of the first-batch)  
 The EU has also noted that Thailand recently intro duced a new scheme to give tax rebated to first- 
time car buyers who buy domestically-produced cars.  (EC) It would be appreciated if Thailand could please  provide us information on the objective of this 
scheme as well as the criteria to obtain this ta x rebate? How does Thaila nd ensure that this new 
scheme will not constitute trade barriers and restric tions for cars imported from other countries? 
 Answer 
The First Car Buyer Scheme provides financial assist ance to first-time car buyers based on the excise 
tax paid by the manufacturers, not an excise tax reba te.  Under this scheme, those eligible must never 
have purchased a vehicle before, and the vehicles cont ain high fuel efficiency with the engine size no 
more than 1,500 cc.  
(iii) Competition policy  
(iv) Price controls  
(v) Government procurement and countertrade  (vi) Intellectual property rights (a) Legislative and institutional developments 
 
Copyrights and related rights 
 WT/TPR/M/255/Add.1 
Page 92 
 
 
 
 
  Paragraph 153: There has been no change in Thailand's copyright legislation in the period under 
review.  The law applied is the Copyright Act B.E. 2537 (1994), which gives protection for the life of 
the creator, plus 50 years, except for works of appl ied art, which are protected for 25 years from the 
date of creation. Copyright applies from the time a wo rk is created.  Registration is not required, but 
the Department of Intellectual Property issues certif icates for notified copyrighted works.  Protected 
works are literary (including computer programs), dramatic, artistic, musical, audio-visual, 
photographic, cinematographic, sound recorded, broadcast, and all other literary, scientific, and 
artistic materials.  Authors' moral rights and performers' rights are also protected.  Computer software is exempt if the copying or modification is for res earch, study or other personal use, and if it is not 
for profit.  
 
(Australia) In case of a dispute, would the notific ation certificate be considere d as evidence or prima 
facie evidence of copyright ow nership and subsistence?  
 
Answer 
Since copyright notification/ recordation is not a registration system and the DIP has no authority to 
examine the validity of the copyright ownership,  the notification certificate is therefore not a 
document which affirms that the person whose name appears on the certificate is the real owner of 
copyright.  However, in practice, the court seems to recognize the notification certificate as preliminary evidence of copyright ownership and subs istence.  Nevertheless, the court will hear other 
evidence presented before it as well.  Paragraph 156:  The Secretariat Report states that the Thai Government has shown its willingness 
to conform to the Internet Treaties - WCT and WPPT  
 
(India) Thailand may please indicate if there is an y fixed time-frame within which it shall seek to 
amend its Copyright law for such conformity.  
Answer There is no fixed timeframe for the amendment to th e Copyright Act in this regard.  Nonetheless, the 
process has already been started. 
 
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu)  
i) Could Thailand please provide an up date on the progress of the study? 
ii) Please also elaborate further on what specific am endments to the Copyright Act, if any, have 
been drafted in this regard? 
 Answer 
The study on the criminalisation of buying of copyright infringing material is still pending. 
There is no draft amendment to the Copyright Act re garding the criminalisation of buyers at this 
stage. 
 
(US) The Report states that the government is planning  to amend its copyright law to include some of 
the core content of the WIPO Int ernet Treaties.  Please describe w hat the government considers to be 
the core content of the WIPO Int ernet Treaties.  Please also d escribe the specific subject matter 
changes (as they relate to the WIPO Internet Treaties) that will be contained in the amendments. 
 Answer 
The draft amendment to the Copy right Act incorporates some of the core content of the WIPO 
Internet Treaties namely the Technological Pr otection Measure (TPM), Right Management 
Information (RMI) and the safe harbour provisio ns which provide limitation to internet service  WT/TPR/M/255/Add.1 
 Page 93  
 
 
 
 
  providers’ liability regarding the IPR violation on their sites. 
 
Trade marks 
 
Paragraph 157:  The Trademarks Act B.E. 2534 (1991) rema ins unchanged since its amendment in 
2000, which included national treatment and extended  coverage to coloured and three-dimensional 
marks.  Owners of registered trademarks are gran ted protection for ten years;  registration may be 
renewed every ten years.  Trade marks that are id entical or similar to well-known marks may not be 
registered and those already registered may be revok ed.  Thai and foreign owners may apply to have 
their marks officially recorded as well-known.14  Also protected are service marks, certification 
marks, and collective marks.  
 (Separate Customs Territory of Taiwan, Penghu, Kinm en and Matsu) What are the benefits to owners 
of having marks officially recorded as "well-known"? Is the owner acquitted of  the duty of proving 
that the trade mark is well-known in other proceedings?  i) Is there any limit to the term of protection for a trade mark recorded as "well-known"?  
ii) What are the related procedures and requirements  for identifying a trade mark as being "well-
known"?  
iii) In proceedings, can anyone claim a trade mark to be well-known without it having been officially 
recorded as "well-known"? 
 Answer 
Marks officially recorded as "well-known" enjoy the right set forth in Article 8(10) of the Trademark 
Act B.E. 2534 (1991).  It provides that the no mark shall be registered if it is identical or confusingly 
similar to the well-known mark.  
 The term of protection for registered trademar ks including the well-known mark is ten years 
from the date of registration with possibility of renewal. 
 To register a trademark as "well-known" the app licant is required to prove that the trademark 
in question is publicly used and is well rec ognised by general public or related group of 
public in Thailand. 
A trademark may be claimed well-known without having been registered as a well-known mark.  
 
Paragraph 159: The EU is concerned about the lack of e ffective application and enforcement of the 
Trademark Act as well as the lack of deterrent fines/ penalties against whiskey counterfeiting ( i.e., 
the use of genuine bottles and packaging of Eur opean liquors refilled with non-genuine content and 
resold).  We understand that the current Thai Trad emark Act B.E. 2534 does not consider the use of a 
genuine trademark for such practices as a violation under the Act. The Act penalizes only a) a person 
who counterfeits a trademark; b) a person w ho imitates a trademark. The infringements and 
violations are dealt with under the Thai genera l criminal law and although the Court may award 
damages, most companies consider any damages awarde d to be too small to be an effective deterrent.  
 (Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu)  We should be grateful if 
Thailand could please explain how applicants will be  able to provide the n ecessary represen tation of 
such trade marks on the application form? For exampl e, how can a true sample of the scent be and 
provided and preserved, and how can such a tr ademark application be exa mined and published? 
 
Answer The draft amendment to the Trademark Act is no w under the consideration of the Parliament.  
Therefore, procedures and practices regarding th e registration of the non-conventional marks are 
                                                      
14 Vachanavuttivong (2008). WT/TPR/M/255/Add.1 
Page 94 
 
 
 
 
  pending. 
 
Patents 
 
Paragraph 161: Under the Act (Section 9), the following un patentable are:  naturally occurring 
microorganisms and their components, animals, plants or extracts from animals or plants;  scientific 
or mathematical rules or theories;  computer prog rams;  methods of diagnosis, treatment or cure of 
human and animal diseases;  and inve ntions contrary to public orde r, morality, health or welfare. 
 
(US) Are genetically engineered plants and animals , or products thereof patentable in Thailand? 
 Answer 
Genetically engineered plants and animals, or products thereof are unpatentable in Thailand. 
 
Paragraph 162:  According to the Secretariat’s report, lack of resources in the Department of 
Intellectual Property means that patent examinations may take over five years, and despite attempts 
to speed up approvals, the department was quoted as  having a backlog of over 18,000 applications in 
late 2010.  
 
(EC) What concrete measures does the Thai Government  intend to take in order to expedite the patent 
registration process and reduce the patent backlogs?    Answer 
The Department of Intellectual Property is in th e process of amending the Patent Act.  One of 
purposes is to streamline the patent registration and examination process. 
 The Department is also working on the revision of the patent examination manual to ensure 
short and efficient process. 
 The database used by the patent examiners is  also important to enhance the examination 
capability.  The Department of Intellectual Pr operty has maintained close cooperation with 
various IP Offices to share patent information to  facilitate the examination of its examiners. 
The DIP also supports ASEAN effort in ASPEC proj ect which aims at sharing patent information 
among ASEAN IP offices to facilitate patent examination.  
(India) Does Thailand have any action plan to speed up the process of granting of Patents seeing the 
long wait period at present? 
 
Answer 
The Department of Intellectual Property is in the process of amending the Patent Act.  One of the 
purposes is to streamline the patent registration and examination process. 
 The Department is also working on the revision of the patent examination manual to ensure 
less burdensome of the registration and examination process. 
 The database used by the patent examiners is  also important to enhance the examination  
capability.  The Department of Intellectual Pr operty has maintained close cooperation with 
various IP Office to share patent information to  facilitate the examination of its examiners. 
 The DIP also supports ASEAN’s effort in A SPEC project which aims at sharing patent 
information among ASEAN IP offices to facilitate and speed up patent examination. 
 Paragraph 163:  The Secretariat’s report states that "The Department of Intellectual Property 
("DIP") recently set up a sub-committee to draft an amendment to the Patent Act; it is chaired by the 
department's deputy director-general and included various stakeholders both inside and outside  WT/TPR/M/255/Add.1 
 Page 95  
 
 
 
 
  government. The Draft could include provisions  to implement the 2003 WTO General Council 
compulsory-licensing-for-export waiver under the Para graph 6 system on TRIPS and public health. It 
could also set up a separate industrial design act and streamline patent examination./…/"  
 
(EC) Could Thailand provide more detailed info rmation on the specific content and report on the 
current status and timeline of th is legislative amendment? 
 
Answer 
The patent amendment sub-committee led by the De puty Director General of the Department of 
Intellectual Property is finalising a list of topics s ubject to amendment. The timeframe for the Patent 
Act amendment has not been set 
 
Trade secrets  
Paragraphs 165-166:  Under the Trade Secrets Act B.E. 2545 (2002), undisclosed information is 
only protected if it is not generally known or readily accessible within the business, if its secrecy makes it valuable, and if it is in the control of the information owners who have taken steps to keep it 
secret.  Generally, the Government has to keep secret  any confidential information it receives subject 
to limited exceptions.  The protection lasts as long as th e information remains confidential.  Test data 
for pharmaceutical and agricultural chemicals produ cts qualify, but Thai law does not give data 
"exclusivity"; the law does not prevent the data fro m being used for the approval of generic versions.  
The number of industrial and commercial trade secr ets notified to the Department of Intellectual 
Property tumbled from 1,801 in 2005 to 254 in 2010.   The reasons for the low uptake are unclear, 
although officials say it could be because of differe nt perceptions about notification and its value in 
protecting secrets.  Various sources (including the pr evious Review of Thailand) suggest the private 
sector might fear notified secrets are insecure, or they might view it as weak because of the low number of injunctions or cases brought to the Intelle ctual Property and International Trade Court in 
Bangkok as criminal charges, and 35 as civil charges.  Officials point out that the notifications do not 
need to contain the actual secrets, only the type of secret.  They add that the purpose of notifying is to 
create preliminary evidence that the secret exists  and who the owner is, which can help with 
protecting the secret or "commercializing" it.  The Intellectual Property Department is trying to 
encourage the private sector to use the notification system.  (Australia) Is violation of trade secrets a signific ant issue for businesses in Thailand? What are the 
penalties for violation of trade secrets under the Trade Secrets Act?   Answer 
Section 33 of the Trade Secret Act B.E. 2545 (2002) provides that whosoever discloses a trade secret 
of other person to the public in the manner which causes the trade secret to cease as a secret, with 
malicious intent to cause damage  to the business of the controller of trade secrets, whether by 
publication through documents, audio or video broadcasting, or disclosure by any other means, shall 
be liable to imprisonment not exceeding one year or  fine not exceeding two hundred thousand baht, or 
both. 
 
Section 34 of the same Act also provides that whos oever, by virtue of his position to preserve trade 
secrets in accordance with the re gulation issued under section 15 paragraph one, unlawfully discloses 
or uses such trade secrets for his own or someone else’s benefit, shall be liable to imprisonment from five to ten years, or fine from one to two million baht, or both.  WT/TPR/M/255/Add.1 
Page 96 
 
 
 
 
  (US) Thai law does not provide for data "exclusivit y"; the law does not prevent the data from being 
used for the approval of generic versions.  Ho w, then, does Thailand meet the requirement of 
TRIPS 39.3?  Answer 
TRIPS 39.3 require Member to protect undisclosed test and data submitted in the process of marketing approval against unfair commercial use.  
 The Food and Drug Administration under the Ministry of Public Health is a government 
agency not a profit oriented or commercial entity .  Therefore, the use of the submitted data by 
the government authority in marketing approval of  a generic version could not be considered 
as commercial use. 
 Moreover, the Ministry of Public Health Regul ation on the Protection of the Trade Secret of 
Pharmaceutical Data B.E. 2550 (2007) provides that the pharmaceutical test data submitted 
for marketing approval shall be protected.  This fulfils Thailand’s obligation under 
TRIPS 39.3.   
 
Geographical indications 
 
Paragraph 167 : The Department of Intellectual Property re gisters Thai and foreign terms and issues 
permits for individuals or comp anies to use Thai-owned terms.
15  Registration is valid until it is 
cancelled.  Among foreign terms registered are Cham pagne (France), the first European geographical 
indication to obtain registration;  Cognac (France);  Brunello di Montalcino and Prosciutto di Parma (Italy); Scotch Whisky (UK); and Pisco (Peru).  Registered Thai geographical indications include fruits, coffee, wine, seafood, roast pork, and fragran t rice.  According to the authorities, the low 
number of registrations compared with applications  reflects the time needed to handle registration 
and the department's staffing constraints. 
 
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) Please provide details of the grounds for the cancellation of a registration.  
Answer The grounds for the cancellation of a trademark re gistration are provided in Article 56 – 67 of 
Trademark Act B.E. 2534 (1991), for example,  
1. failure to renew the trademark registrati on within the grace period provided by law, 
2. incompliance of the trademark owners to the te rms and conditions set forth by the registrar, 
3. in case of foreign trademarks, absent of busin ess practices or authorized representatives in 
Thailand, 
4. it is exposed to the registrar that, at the time of registration, the trademark did not meet the 
criteria for registration set forth in the Trademark Act. 
5. the trademark owner did not intend to use, has never used or has not used the trademark for 
three consecutive years, unless the trademark ow ner can prove of the special circumstance 
on trade that prevents the use of such trademark. 
6. the trademark becomes generic.    
 
Paragraph 168:  Once a term is registered, similar or identi cal terms must not be used if that could 
cause confusion or be misleading about the product 's geographical origin, quality, reputation or 
characteristics.  Thailand applies "GI extension" to a limited number of products under Chapter V of 
the Act: Ministerial Regulation of Geographical Indi cations B.E. 2547 (2003) identifies rice and silk 
                                                      
15 Department of Intellectual Property online information (in Thai).  Viewed at: www.ipthailand.go.th 
[24 April 2010)].  WT/TPR/M/255/Add.1 
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  as well as wines and spirits as products benefiting fr om a higher level of protection , which protects 
their names against goods from other geographical ar eas using the same or similar terms even when 
their true origin and qualities are clearly identified so there is no risk that anyone will be misled or 
confused.  Protection is exempt if a term is generic or to protect public order, morals or policy.  The 
law allows for fines of up to B 200,000 for violations. 
 
(US) It appears that Thailand’s Protection of Geogr aphical Indications Act B.E. 2546 (2003) ("the GI 
Act") does not explicitly prohibit the registration of GI s that conflict with earlier trademarks.  Please 
confirm whether or not this is the case.  Answer 
Thailand sees the protection of geographical indication and trademark as separate systems, therefore, they could co-exist. 
 
Protection of plant varieties  
Paragraph 170 :  Protection under the sui generis  Plant Varieties Protection Act B.E. 2542 (1999), 
which entered into force in December 1999, is for up to  27 years.  It defines plant varieties eligible for 
protection and says that genetically modified varieties may only be registered af ter they are officially 
appraised as safe for the environment, health, and p ublic welfare.  Farmers may replant the protected 
varieties they have grown for their own use, if  the government has announced it is promoting the 
variety, and up to a limit of three times the origin al quantity that the farmer obtained.  The Act is 
administered by the Agriculture Ministry.  Thailand  is not a member of International Union for the 
Protection of New Varieties of Plants (UPOV), and has not signed its Convention.  
(US) Thailand currently is not a member of the In ternational Convention for the Protection of New 
Varieties of Plants, (UPOV), and 1991 Act.  Does Thailand plan to join UPOV?  
 
Answer 
At present, Thailand has no plan to join the UPOV. 
 (c) Government use and compulsory licensing 
 
Paragraph 175:  The legal basis for the Thai compulsory licencing is under legislation applying 
separately to copyrights as well as patents.  The Thai Patent Act allows it on a variety of grounds, for 
use by the private sector or the Government, and for all types of inventions, not only pharmaceuticals.  
Any person may apply for a compulsory licence three years after a patent has been granted or four years from when the patent applicati on was submitted, whichever is later.
16  In addition, Section 51 of 
the Patent Act allows licences to be granted for gove rnment use, for example to carry out any service 
for public consumption or to prevent or relieve a sev ere shortage of food, drugs or other consumption 
items, or for public non-commercial use.  For c opyrights, any interested person may apply for 
compulsory licensing to translate a work into Thai or to reproduce a translation published in Thai, 
under special circumstances, for example for non-profit research, study or teaching. 
 
(US) The Thai Patent Act allows compulsory licensing on a variety of  grounds, for use by the private 
sector or the Government, and for all types of inven tions.  How many compulsory licenses have been 
granted for non-pharmaceutical products? Please explain their issuance in light of TRIPS?     
                                                      
16 The relevant provisions are in Sections 45, 46, 47 and 47 bis of the Patent Act B.E. 2522 (1979) as 
amended in 1992 and 1999. WT/TPR/M/255/Add.1 
Page 98 
 
 
 
 
  Answer 
To date, there is no report on compulsory licenses grant for non pharmaceutical products. 
 (d) Enforcement  Paragraph 176: The Secretariat’s report describes Thaila nd's efforts to tackle piracy and 
counterfeiting.  
 
(EC) Could Thailand explain in concrete terms wh at it has been doing in previous years and what 
intends to do in the future to improve the enforcem ent of its IPR legislation? Could Thailand provide 
examples of recent advances in this field?  
Answer Thailand has been seeking to improve the enforcem ent of IP legislation through a four-pronged 
strategy, namely, expedition of law amendmen ts/enactments, enhanc ement of interagency 
cooperation, capacity building and effective awareness raising activities. Some of the 
projects/initiatives described below are ongoing proj ects and will be carrying over to next year.  
 
Expedition of law amendments/enactments 
 Anti-Camcording provisions: The Ministry of Co mmerce by the Department of Intellectual 
Property proposed an anti-camcording Bill to the Cabinet in 2011. However, the Council of 
State expressed the view that, instead of comp iling into a separate piece of legislation, anti-
camcording provision should be incorporated into the Copyright Act B.E. 2537 (1994). 
Hence, the Department of Intellectual Property is drafting an amendment to the Copyright Act 
and will submit it to the Cabinet soon. 
 Landlord Liability provisions: In absence of the said provisions, the Department of 
Intellectual Property convened a meeting with  relevant government agencies and IPR right 
holders to consider available courses of action under existing laws including the deployment 
of administrative measures against uncooperativ e landlords. In 2012, the Department will 
revisit the idea of amending Copyright Act B. E. 2537 (1994) and Trademark Act 2534 (1991) 
with a view to criminalizing landlords who facilitate IPR infringing activities. 
 
IV. TRADE POLICIES BY SECTOR 
(1) A GRICULTURE  
(i) Features 
 
Paragraph 16: The Secretariat Report notes that the alloca tion of tariff quotas to importers tends to 
be quite complex.  
 
(Canada)  Could Thailand please elaborate on an eventual plan to reduce the complexity of its TRQ 
administration system?  Answer 
Each product subject to TRQ is administered under different committees of which committee 
members are appointed from different agencies.  A ll notifications with regard to TRQ are published 
with transparency, and the public may request  for information from relevant agencies. 
 
Paragraph 17: The Secretariat Report notes that Thailand administers some quotas in a manner that 
could limit market access, for example, limiting the import period or limiting the entities that can 
access quota.  
  WT/TPR/M/255/Add.1 
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  (Canada)  Could Thailand please elaborate on the rea sons for these limits placed on access to quota?  
 
Answer 
The administration of TRQ is determined the policy of the Ministry of Agriculture and Cooperatives, 
taking into account, among others, production and domestic demand.  
 
(New Zealand) The Secretariat report provides some  detail on Thailand’s unique agriculture polices 
(page 104) and also contains so me criticism of the Thai tariff quota system.  Page 105 states: 
"Administration methods used for tariff quotas va ry, although all quotas are open to all supplying 
countries….Allocation of tariff quotas to importers tends  to be quite complex with partial allocations 
on a first-come-first-served basis, to manufacturers fo r imports of raw materials, to historical 
importers, and to producer groups. So me quotas are administered in ways that could limit access.  
For example, in 2011 in-quota imports of maize are limited to the state-owned Public Warehouse 
Organization, which may import only during 1 March to  30 June.  In late 2010, in response to rising 
prices, the Ministry of Commerce announced that it wa s suspending application of quotas and tariffs 
on soybeans, and soybean meal would be subject to  a tariff of not more than 2% with no tariff quota 
limit.  However, imports were to be restricted to a limited number of private companies or trade 
associations." 
 Concerns have been raised previously about the time liness of notification of quota allocations (e.g. 
Skim Milk Powder) to trading partners.  We  would welcome an update from Thailand on any 
measures it has under consideration to address this  issue and improve the timeliness of such 
notifications. 
 
Answer 
Relevant committees review the administration of TRQs in order to improve  and better accommodate 
consumer and market needs.   
 
Paragraph 15 under "Agriculture Policies" notes that some quotas are under-subscribed ("hardly 
used").    We would welcome information fr om Thailand on reviews it may have underway to 
liberalise access for these products.  Answer  
The volume of imports under TRQs depends on domestic demand. 
 
Section IV(1)(iii) notes states that the "allocation of tariff quotas to importers tends to be quite complex …" (paragraph 16) and that "some quot as are administered in ways that could limit 
access".    We would welcome information fr om Thailand on measures under consideration to 
simplify tariff quota administration and to help en sure that the negative trade impacts from quota 
administration are minimised. 
 Answer 
Relevant committees review the administration of TRQs in order to improve  and better accommodate 
consumer and market needs.    (Canada)  Could Thailand please describe the eligib ility criteria of those entities eligible for quota 
allocation?  Answer 
Such entities must be juridical pers ons to ensure accountability.   
 WT/TPR/M/255/Add.1 
Page 100 
 
 
 
 
  (ii) Trade in agriculture  
(iii) Agriculture policies 
(b) Market access 
domestic support 
 
Paragraph 20: For rice, a producer price support scheme introduced in 2001 effectively provided 
producers with a guaranteed price for rice.  Under the programme, farmers were given a low-interest 
loan (a mortgage) based on the quantity of rice ha rvested and the loan rate.  If market prices were 
greater than the loan rate, the loan  could be repaid at the loan rate plus interest or, if prices were 
below the loan rate, with the harvested rice.  Th e programme was suspended in 2006 after stocks of 
nearly 5 million tonnes were accumulated.  However,  it was reintroduced for 2008 with the loan rate 
of B 10,000 per tonne for the first harvest and B 14,000 per tonne for the second harvest (equivalent 
to about US$304 and US$425, respectively, at the average 2008 exchange rates).  Stocks of 2.5 
million tonnes were acquire d by end-September 2008.17  In marketing year 2009/10, when stocks 
reached 6 million tonnes, the mortgage scheme was replaced by a price insurance scheme.  Under the 
new scheme, producers are paid the difference betw een an insurance price and a weekly benchmark 
price.  The scheme has become popular, with 3.5 m illion farmers registered.  Insurance prices range 
from B 15,300 per tonne for up to 14 tonnes of fragrant rice per household to B 9,500 per tonne for up 
to 25 tonnes of glutinous rice per household.18  These are the equivalent of about US$503 and 
US$312, respectively, at the average exchange rate for January-June 2011.   
 
(EC) Could Thailand provide information on how mu ch rice the government intends to buy in the 
framework of the "Rice Mortgage Scheme", as well as how and when the government plans to sell the 
stocks?  
Answer 
There is no target amount of rice under the framework.   The actual amount of rice to be acquired 
under the framework will depend on the market situation and farmers’ di scretion to join the scheme.   
The government has established a subcommitte e in charge of the release of rice.  
 
(Japan) Under the previous producer price support sch eme, stocks of rice reached about 6 million 
tonnes in the marketing year 2009/2010. Could Thailand kindly explain how it disposed of them? In the case that Thailand exported them, how much vo lume was exported from the stocks and how much 
was the average exporting price? Please also prov ide the domestic market price during the same 
period for comparison purposes.  Answer 
During 2008-2010, the government operated Farmer’s  Income guarantee programme, which separate 
the support from commercial transactions. For the re lease of government owned rice stocks, it is 
under the supervision of Sub-Committee on rice stock release under Ministry of Commerce. 
 
(Singapore) With regard to the mortgage scheme for rice, we w ould appreciate it if Thailand could 
provide more details on the scheme, including the expected duration of the scheme, and how the price 
pledging would affect the prices of rice exports in 2012.  We would appreciate it if Thailand could 
provide updated figures on the amount of rice pledged to the Thai government since the 
implementation of the scheme.   
                                                      
17 Forssell (2009). 
18 Oxford Business Group (2011);  and the Thai authorities.   WT/TPR/M/255/Add.1 
 Page 101  
 
 
 
 
  Answer 
The Government has established certain categories of rice to be eligible for the participation in the 
scheme.  The scheme will be implemented similarly to the way it was done in the previous pledging 
schemes.  The duration for this crop has been set out from 7 October 2011 to 29 February 2012.  We 
expect that the scheme would not affect the expor t prices as the prices will be determined by the 
world mechanism and the domestic demand.  (Australia) Australia notes that in the marketi ng year 2009/10, the mortgage scheme offered for rice 
was replaced by a price insurance scheme; and that  in October 2011, this guaranteed price system 
reverted to back to a mortgage scheme. Can Thai land please provide an explanation to as why it 
opted to revert back to the mortgage scheme for rice?  
(Australia) We note that Thailand’s domestic s upport levels for rice have been a major component of 
Thailand’s Current Total Aggregate Measuremen t of Support in the period 2005-07?  We would 
welcome advice from Thailand on what the most  recent changes in policy would likely mean with 
respect to Thailand’s AMS commitments under Article 6 of the Agreement on Agriculture? 
 
Answer The reason for the change from "Income Guarante e Program" to "Paddy Pledging Scheme" was 
based on policy of the newly elected government which aims to stabilize rice price and raise the living standard of rice farmers.  Rice is the majo r source of staple food for Thais and has played 
significant role in our people livelihood and culture.   With respect to Thailand’s AMS commitments un der Article 6 of the Agreement on Agriculture, 
please be advised that we are well aware of our commitments and committed to honoring the 
Agreement. The changes in policy will not have  any adverse effect on our compliance to the 
commitments.   Paragraph 21:   In October 2011 the guaranteed price syst em reverted to a mortgage scheme with 
prices ranging from B 15,000 per tonne for paddy rice to B 20,000 for fragrant rice.  The Bank for 
Agriculture and Agriculture Cooperatives is to pr ovide loans to the Public Warehouse Organization 
and the Marketing Organization for Farmers to purch ase rice at this price at the start of the new 
mortgage scheme.
  The increase in guaranteed prices, along with the severe flooding in the country, 
has raised concerns about the impact on world pri ces and the quantity of rice Thailand will be able to 
export.  
 
(Japan) What is the target volume of rice stocks which Thailand plans to store under the new 
mortgage scheme?  Answer 
There is no target amount of rice under the framework.  The actual amount of rice to be acquired 
under the framework will depend on the market situati on and farmers’ discretion to join the scheme.   
The government has established a subcomm ittee in charge of the release of rice. 
 
(Japan) How is the domestic price trend of rice after the announcement of re-introduction of the 
mortgage scheme? 
 Answer 
After the announcement of the rice pledging scheme, the domestic market price of rice has increased 
in response to the news.  
 WT/TPR/M/255/Add.1 
Page 102 
 
 
 
 
  (US) According to the Secretariat Report, the g uaranteed price system for rice reverted to a mortgage 
scheme in October 2011.  What is the amount of monetary resources that Thai land has allocated to 
support this new rice mortgage pr ogram?  Could Thailand please provide more detailed information 
on how its rice mortgage scheme will function?  Answer 
Bank for Agriculture and Agricultural Co-operatives (BAAC) is the responsible agency who is in 
charge of making payments to rice farmers in resp ective of the scheme. They are now in the process 
of submitting the ceiling of rice pledging scheme operation for the cabinet approval.  The government will conduct mortgage scheme accordi ng to categories of rice (paddy white rice or 
jasmine hom mali rice for instance) and duration of the scheme.  The paddy pledging scheme will be 
operated in the similar manner as the previous  schemes conducted in the past periods.   
 
Paragraph 22 : According to the authorities, the Government no longer purchases or stockpiles rice 
for price support.  However, it has been reported that  existing stocks have been sold for export, with 
2-3 million tonnes released in 2010 and 2-3 million tonn es still held as stocks at the end of that year.
19  
Sales are through public auctions, and the authoriti es noted that they take measures to ensure the 
auctions are competitive with no collusion between buyers. 
 
(US) Is the Secretariat’s information correct t hat "the [Thai] Government no longer purchases or 
stockpiles rice for price support?"  In 2008, 200 9, 2010, and 2011, why did the Thai government 
release rice stocks contingent on it being exported?  Was the rice exported for prices below what the 
Government had paid for it?  
 
Answer 
Thailand does not impose any require ment or condition for bidders to export rice.  Rice purchased 
from the government- owned stocks can be traded domestically as well as exported, according to the 
market conditions.   There is no linkage between the Government ’s acquired prices and the export 
prices.  The acquire prices are determined by the domestic market prices during the operation of the 
mortgage scheme.  On the other hand, the rice expo rt is operated through commercial transactions 
and thus the export prices are subject to world market conditions.    
(Australia) Australia notes that Thailand offers a mortgage scheme for rice (as of October 2011) and 
that prices range from B15, 000 per tonne for paddy  rice to B20,000 for fragrant rice. Can Thailand 
please confirm that this recently reinstated mortgage  scheme operates in the same manner as the low 
interest loan scheme introduced in 2001? If not,  Australia would appreciate a detailed explanation 
from Thailand as to how the current scheme operates. 
 Answer 
The current "Paddy Pledging Scheme" (2011/2012) is  implemented in the similar manner as the one 
which was implemented in 2000/2001.  
Page 106  
 
(Australia) Australia notes that the administration methods used by Thailand for Tariff Rate Quotas 
(TRQs) vary between commodities. Given the va ried methods of TRQ administration used by 
Thailand, Australia requests clarification on the following aspects of administration: 
 Timing of the opening of TRQs 
 Communication and advertising of calls for expression of interest 
                                                      
19 USDA Foreign Agriculture Service (2010b).  WT/TPR/M/255/Add.1 
 Page 103  
 
 
 
 
   15 day window for submitting expressions of interest  for potatoes, coffee beans, instant coffee 
and tea 
 
Answer 
The Ministry of Agriculture and Cooperatives assigns a committee to supervise each commodity, 
when a committee has a resolution, the Department of Foreign Trade (DFT) will start the process via 
http://www.dft.go.th and also through DFT’s press rel ease network.  In the past, DFT also informed 
the Australian Embassy in Bangkok.  Regarding the 15-day window for submitting expressions of 
interest for potatoes, coffee bean s, instant coffee and tea, is a principle under the WTO since 1995.  
However, in 2012, the 15-day window would be extended to 15 working days (21 days).  
(iv) Support levels  
 
(US) In calculating its Aggregate Measurement of  Support, did the Thai government take into account 
the storage fees for the accumulate d stocks of rice, maize, and cassava?  If not, please explain why it 
did not.  Answer 
Yes. 
 
(2) FISHERIES (3) E
NERGY  
(i) Introduction 
(ii) Hydrocarbons 
(iii) Electricity (4) S
ERVICES  
(i) Main features and multilateral commitments 
 
Paragraph 60  
 
(New Zealand) Section IV, paragraph 60 of the S ecretariat report notes that Thailand’s horizontal 
commitments under the GATS list a 49% ceiling on fo reign equity participation, but that individual 
sector-specific commitments indicate differing forei gn equity limitations are applied.  Similarly, 
paragraph 174 of the report explains that the 49%  foreign equity limitation generally applied to 
foreign equity participation in hotels can be va ried to permit majority foreign ownership upon 
approval under the Foreign Business Act.  C ould Thailand please provide updated advice on 
processes to consider further relaxation of foreign equity limitations on a general and sector-specific 
basis?  Answer 
Section 5 of the Foreign Business Act provides for the criteria in granting such permission.  In 
permitting foreigners to operate under the Act, the followings are to be taken into account: 
advantages and disadvantages to the nation’s safety and security, economic and social development, 
public order and good moral, art, culture and traditi on of the country, natural resource conservation, 
energy and environment, consumer protection, si ze of enterprise, employment, technology transfer, 
and research and development. 
 WT/TPR/M/255/Add.1 
Page 104 
 
 
 
 
  (ii) Financial services 
Banking and finance 
Legal framework  Capital Market Market structure (iii) Telecommunications 
 
Paragraph 111: Thailand's telecommunication industry continued to expand during the review 
period, albeit at a slower pace.  After years of  strong growth, demand for mobile services has been 
easing, with market penetration having exceeded  100%; the broadband Internet market has seen 
vigorous growth in recent years but from a relativel y small base, while development in the fixed-line 
market has been insignificant.  Thailand has made  progress towards reforming its telecommunications 
regulatory regime, and the entrance of new operators has increased competition in some sectors of the 
market.  However, delays in implementing reforms have created uncertainty for operators, and certain 
deregulation issues remain a major challenge, su ch as restructuring the state-owned telecom 
companies.  Under the Act on Organization to Assign Radio Frequency and Regulate Broadcasting 
and Telecommunication Services B.E. 2553 (2010) enacted in late 2010, a single regulator was 
created to oversee the broadcasting and telecommuni cation industries;  the commissioners of the new 
regulator were in the process of being selected at the time of writing this report.  
 
(Australia) We note the reference to the creation of a new single regulator to oversee the broadcasting and telecommunications industries (the  National Broadcasting and Telecommunications 
Commission), that commissioners for this new regulator  were in the process of being selected.   We 
would welcome an update on the NBTC, including selection of the commissioners and the 
commencement of its role as the new industry regulator. 
 
(EC) Could Thailand provide the latest update on the regulatory framework (including on the recently 
appointed National Broadcasting and Telecommunications Commission, NBTC) and future policy 
direction in the telecommunications sector?  
 (China) In this connection, the authorities have indicated that the telecommunications sector has 
undergone a process of reform and restructuring over the past three years and a new regulatory body will be set up shortly to oversee the sector, w ith the Ministry of Information and Communication 
Technology retaining responsibility for policy-making and mapping out the direction for further 
liberalization.  The outcomes of this process will be reflected in Thailand's Schedule of Commitments 
upon completion.  Could Thailand please share w ith Members the progress in setting up the above-
mentioned new regulatory body and th e specific function of this body? 
 (EU) Could Thailand provide the latest update on the regulatory framework (including on the 
recently appointed National Broadcas ting and Telecommunications Commission, NBTC) and future 
policy direction in the telecommunications sector? 
 
(Norway) In paragraphs 1 16 and 118, reference is made to dela ys in the auctioning of 3G licences for 
private operators. An indication of when such auc tion could be held for private operators would be 
appreciated.      
 (US)  Now that the NBTC has been appointed, w hat is the expected timing of the 3G spectrum 
licensing process?    (Japan) According to the Secretariat’s Report, the process of 3G licensing has been delayed 
repeatedly and private companies currently operate only second-generation mobile-phone services. In  WT/TPR/M/255/Add.1 
 Page 105  
 
 
 
 
  the meantime, the authorities have indicated that a license auction for 3G (new 2.1 GHz frequency 
spectrum) will be organized by the new independe nt regulator, NBTC. Japan would like to know in 
which stage a preparation for the auction for 3G is at this moment and for when the auction is 
scheduled.   (Japan) The Secretariat’s report mentions that a Type 3 license as well as a spectrum license must be 
obtained in order to operate mobile services co mmercially. Japan would like to know if service 
providers who don’t have their own networks and lease the network held by Type 3 licensees could 
provide mobile service commercially in Thailand.  (India) It has been mentioned in the Sectt. Re port that at present, private companies operate only 
second generation mobile phone services because the pr ocess of 3 G licensing has been delayed since 
2005 due to legal complication. W hat time horizon is being considered by the Thai Government to 
launch the 3G licensing process?  (EC) When will Thailand intr oduce commitments on interconnec tion and public availability of 
licensing criteria to its Schedule of Specific Commi tments that would establish the above mentioned 
level playing field as committed in its  current Schedule to be done by 2006? 
 (US) Now that the NBTC has been appointed, what is the expected timing of the 3G spectrum licensing process?    Answer 
The Act on Organization to Assign Radio Freq uency and to regulate the Broadcasting and 
Telecommunication B.E. 2553 mandates the National Broadcasting and Telecommunications Commission to develop the Master Plan for Te lecommunication Frequency Management serving as 
the initial guidelines for the authorization of a ll activities related to telecommunication frequency 
usage. The National Broadcasting and Telecommunica tions Commission is also mandated to develop 
the Master Plan for Telecommunication as the basi s for regulating business operations, which aims at 
promoting development and fair competition in the fi eld. The procedures for the authorization of 3G 
services shall be launched after the two Master Plans are successfully developed. We expect that the 
procedures for the authorization of 3G services could begin in 2012.  
 
Mobile services operators having their own netw orks shall acquire Type 3 license as well as a 
spectrum license in order to operate mobile services.  For mobile services operators who do not have 
their own networks, they could provide services as Mobile Virtual Network Operator (MVNO). At 
present, there are a number of Type 1 licensees operating as MVNO.   
(Norway) In the report WT/TPR/S/255, the S ecretariat in paragraph 111 refers to delays in 
implementing reforms in the telecommunications regulatory regime and that a single regulator has 
been created to oversee the broadcasting and te lecommunication industries. On 31 August, a 
notification of the National Broadcasting and Telecommunication Commission, the NBTC, was published regarding the prescription of prohibited ac ts which are deemed as foreign dominance.  
 
(Norway) Norway has followed Thailand’s effort s to liberalize the telecommunications sector over 
many years. It would be greatly appreciated if T hailand could outline and explain the changes this 
notification will entail for foreign economic opera tors investing in your country (inter alia 
appointment of management, share cl assifications and voting rights).  
 (Japan) According to t the Secretariat’s Report, the process of 3G licensing has been delayed 
repeatedly and private companies currently operate only second-generation mobile-phone services. In WT/TPR/M/255/Add.1 
Page 106 
 
 
 
 
  the meantime, the authorities have indicated that a license auction for 3G (new 2.1 GHz frequency 
spectrum) will be organized by the new independe nt regulator, NBTC. Japan would like to know in 
which stage a preparation for the auction for 3G is at this moment and for when the auction is 
scheduled.  (Norway) In paragraphs 1 16 and 118, reference is made to dela ys in the auctioning of 3G licences for 
private operators. An indication of when such auc tion could be held for private operators would be 
appreciated.  
 
(EC) Can Thailand confirm that the Telecomm unications Business Act limits only the amount of 
equity ownership a foreigner can hold in a Thai company, not the voting shares or foreigners' ability 
to control the company through preferential s hares similarly to the Foreign Business Act?  
 
(EC) Can Thailand explain the National Tel ecommunications Commission Notification on Foreign 
Dominance published in the Royal Gazette in A ugust 2011 restricting foreign shareholders ability to 
"having the controlling power or influencing either directly or indirectly in determining policy, 
business management, director appointment, executive appointment, administration, or important 
management that affects business management"?  
 (EC) Can Thailand ensure that this Notification on Foreign Dominance does not incorporate any new limitations to national treatment elements, which ha ve not been introduced into its Specific Schedule 
of Commitment? 
 
(US) Under the NTC, Thailand adopted regul ations to restrict "foreign dominance" in 
telecommunications which became effective August 31.  Please provide more detailed information 
regarding the regulations recently adopted to restri ct "foreign dominance" in telecommunications.  
Please explain the process or processes for the implementation of this regulation and how the 
49 percent limit will be calculated. 
 
Answer 
The Telecommunication Act B.E. 2544 and its subse quent modifications do not specifically cap the 
foreign equity. However, they require that Type 2 and Type 3 license applicants shall not be foreign 
business within the definition under the Foreign Bu siness Act. Therefore, in order to determine 
whether Type 2 and Type 3 license applicants are fo reign business, we will have to respect the criteria 
set out under the Foreign Business Act.  Regarding the determination of the activities constitu ting foreign dominance as appeared in the Annex 
attached to the NTC regulations to restrict forei gn dominance B.E. 2554, the NTC Office is currently 
holding a public hearing on this issue.  The NTC regulations on foreign dominance B. E. 2554 are initiated pursuant to Article 8 
Paragraph 3(1) of the Telecommunication Act B. E. 2544. All telecommunication services providers 
shall be subject to the regulations. The regulati ons, therefore, are not in breach of the National 
Treatment principle. In addition, it was also provide d that the application of the regulations shall be 
exercised to the extent that Thailand’s internati onal commitments are observe d, which is a similar 
principle to Article 10 of the Foreign Business Act B.E. 2542.  
The cornerstone of the NTC Regulations on foreig n dominance B.E. 2554 is to lay down the criteria 
of activities constituting foreign dominance in telecommunication business operation for type 2 
licensees having their own networks and type 3 li censees in which the enfor cement shall be initially 
done through licensees’ self-certification. When there may be a case that a business operation is 
dominated by foreigners, the concerned business ope rator shall report to the NTC for the scrutiny 
including the verification from the National Securi ty Competent Authorities to determine whether 
such activities affect the national security, public order and moral. If that was found to be the case, the  WT/TPR/M/255/Add.1 
 Page 107  
 
 
 
 
  NTC may request the concerned business operator to  take necessary action to resolve the effects 
caused by foreign dominance within the determined  period. In the case where the concerned business 
operator fails to do so, the NTC may enforce necessa ry measures as set out in the laws, for example, 
imposing administrative fines, suspending/revoking the license or holding the issuance of the license.  
 
(iv) Transport 
(a) Air Transport  
(c) Road and rail transport  
 
WT/TPR/G/255 – Thailand Country Report 
 OVERVIEW 
II. ECONOMIC ENVIRONMENT 
(1) E
CONOMIC DEVELOPMENTS , 2007-2010 
(2) E CONOMIC SITUATION IN 2011  Q1 
(3) T RADE ENVIRONMENT  
(4) M EDIUM -TERM OUTLOOK  
III. MACROECONOMIC AND STRUCTURAL POLICIES  
(1) M ONETARY POLICY  
(2) F ISCAL POLICY  
(a) Trade and Investment Policies 
 
(US) Please provide specific information as to whic h Thai laws are referenced in the following Thai 
Government statement:  "In addition, Thailand  also aims to promote transparency and good 
governance by closing loopholes and strengtheni ng the enforcement of the existing laws." 
 
(Australia) We would welcome an update on the review of the laws which are identified, namely: the 
Competition Law, Foreign Business Ac t, and three Insurance-related Acts. 
 (US) Is the Thai Government currently considering amendments to the Foreign Business Act (FBA)?  
If so, please provide details of the proposed revisions to the FBA  
 
(Australia) We note the reference to revitalizi ng and improving the legal framework for doing 
business in Thailand and the ongoing review of se veral existing laws.  We would welcome an update 
on the review of the laws which are identified, nam ely: the Competition Law, Foreign Business Act, 
and three Insurance-related Acts. 
 
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) It would be appreciated if 
Thailand could please advise us of progress on this legisl ation and provide further details as follows:     
i) What are the main elements of the drafted amendments?   
ii) Is information on these amendments or  drafts available in English?  
iii) Will these amendments or drafts be made available for public comment?  
 
Answer 
The revision of Thai competition law is to revise  the scope of the law to apply to state-owned 
enterprises, especially in the form of public compa ny, that compete with the private sector.  Currently 
the amendment proposal is under consid eration of the Office of the Council of State.  Any change to 
the FBA and insurance acts are currently under review.   
 WT/TPR/M/255/Add.1 
Page 108 
 
 
 
 
  IV. TRADE AND TRADE-RELATED POLICY DEVELOPMENTS  
(1) T ARIFFS  
(2) I MPORT SYSTEM  
(3) E XPORT SYSTEM  
(4) C USTOMS PROCEDURES AND CUSTOMS VALUATION  
(5) C ONTINGENCY MEASURES  
(6) A GRICULTURE  
 
Paragraph 74:  Thailand refers to drought and floods in 2010 and its severe impact on certain 
productions.  
 
(EC) Would it be possible to get a more detailed report of the impact on sugarcane, palm oil and 
rice? Also, in relation to current floods in Thailand, could Thailand already comment on the most 
likely impact on food production and food prices?  
 
Answer  
The drought and flood in 2010 reduced rain-fed rice yield for about 4.6% while there was no effect on irrigated rice production. About 1.3 million tonnes of sugarcane and 0.8 million tonnes of palm oil 
were damaged.   In relation to current flood in Thailand, it is too soon to provide precise da ta on food production and 
prices. However, as flooded areas are mainly in th e central part of Thailand where horticulture and 
fisheries are produced, it is predicted that production should be reduced, resulting on higher price, at 
least for a short term.    
 
Paragraph 76: Thailand describes very broadl y its agricultural policy.  
 
(EC) Could Thailand indicate the public budget allocated to this policy? 
 
Answer 
In the 10
th NESDB Plan (2007-2011), each year the MOAC was allocated the average budget of 
70,000 million baht. As many of offices of the MOAC are involved in the budget calculation and 
desegregation, it might take a while to be able to  report the details required in paragraph 76 of 
document WT/TPR/G/255. 
 
Paragraph 77: Thailand refers to activities such as promotion of quality agricultural products.  
 
(EC) Could Thailand give more detail on these q uality schemes? Are thes e private schemes, or 
publicly supported? Do they cover organic produc tion, geographical indications (GIs)?  
 
Answer  
The schemes are publicly supported and focus main ly on establishing Good Agricultural Practice 
(GAP). GAPs are introduced to farmers so as to improve production quality and to be used as an 
inspection mechanism of food safety of all commodities, including organic farming. The publicly 
supported schemes cover geographi cal indications (GIs) as well. 
 GAPs are developed by the National Bureau of  Agricultural Commodities and Food Standards 
(ACFS), which was established in October 2002. GAP helps meet the community demand to reduce 
the use of chemical substances, improving the qualit y and add the agricultural values to the products. 
It also has farm inspectors to examine the quality  of produces of farms and provide GAP certification  WT/TPR/M/255/Add.1 
 Page 109  
 
 
 
 
  marks for those farms that pass the criteria.  MOAC strongly recommends that exporters buy from 
farms with GAP certification marks. This increases the credibility of Thai agricultural produces.  
 The high quality and safe products are exported directly  to suppliers and to Thai restaurants abroad 
and locally used as ingredients in the agro-industries.   (7) I
NDUSTRY  
 
Paragraph 79 and 82  
 
(Singapore) Backed by the National Industria l Development Master Plan to enhance industry 
competitiveness, Thailand’s industrial sector regi stered a 10.9% year-on-year increase in 2010.  
However, the continuation of such growth mi ght be hampered by the recent floods, which have 
resulted in extensive damages to industrial properti es and equipment.  In this regard, we would 
appreciate it if Thailand could elaborate on plans to assist such firms in resuming their operations 
and the preventive measures to mitigate the impact of future floods in these industrial parks. 
 
Answer  
1. Loan from Small Business Credit Guarant ee Corporation (SBCG) and the Government 
 Savings Bank. 2. Industrial Estates Flood Management Plan for the Long Term Phase.  
2.1 The Industrial Estate Authority of Thailand will be offered loan to develop their flood 
protection systems for manage the flood risk over the next 50-100 years. 
2.2 Design, construct and improve the infrast ructure’s capacity: water supply system, water 
management system, electricity network system – to  ensure operation and better risk management in 
case of flood. 
2.3 Improve Early Warning System for effici ent flood emergency management to ensure 
industrial confidence, for instance, dams, reservoirs, irrigation system in the specific areas to control 
water flow and respond to water demand in the industrial parks. 
 
(8) F
INANCIAL SERVICES  
 
Paragraph 105: (Singapore) We note that the Bank of Thailand has continued to ease exchange 
control regulations, and that the relaxation is ai med to add more balance to Thailand’s capital flows 
and provide more investment alternatives to Thai individuals.  We would appreciate if Thailand could provide more information on the exchange c ontrol regulations that have been relaxed.  
 
Answer 
During 2007-2009, the exchange control regula tions that have been relaxed included: 
 raising limits on Thai direct investment abroad  and finally removing the limit of investment 
by juridical persons in 2010 
 allowing institutional investors to invest in securities abroad within permitted amount limit 
and later expanded the scope of portfolio i nvestment by allowing them to engage in 
derivatives transactions in order to fac ilitate investment and risk management 
 allowing retail investors to purchase securities abro ad upon the Bank of Thailand’s approvals  
 raising the limit for purchase of immovable properties abroad  
 allowing juridical persons to lend to non-aff iliated companies abroad within permitted amount WT/TPR/M/255/Add.1 
Page 110 
 
 
 
 
  limit  
 relaxing regulations on forei gn currency deposit to allow residents to deposit funds from 
abroad without restrictions and foreign curre ncies purchased from commercial banks up to the 
permitted outstanding balances (such as up to USD 100 million for companies having future 
obligations payable in foreign currencies). 
 
(9) Transportation 
(10) Telecommunication 
(11) Tourism (12) Investment  
Paragraph 155: The report by the Government states that  "According to the Foreign Business Act 
B.E. 2542 (1999), foreign participation is allowed in  a wide range of activities, such as brokerage 
services, wholesale and retail trade, construction, non-silk textiles, garments, footwear, hotels, 
beverage production, and auction businesses.  Howe ver, foreign investors are required to obtain 
necessary permissions from relevant ministries to be able to operate. /…/". 
 
(EC) Can Thailand elaborate on whether there will be foreseeable policy chang es in the near future 
to investment incentives/schemes pr ovided, especially under the Board of Investment (BOI)? Can 
Thailand specify the amounts of FDI pledged and th e amounts of FDI disbursed under the Board of 
Investment (BOI) of Thailand and, on the other hand, under the regular regime governed by the 
Foreign Business Act?  
 
Answer 
The activities which are eligible for investment  promotion are those which are important and 
beneficial to the economic and social development,  and security of the country, activities which have 
high content of capital, labor or service or ac tivities which utilize agricultural produce or natural 
resources as raw materials, provided that the industry are non-existent in the country, or existent but 
inadequate, or use out-of-date production processes.   The amount of FDI in the year 2009 is as attached.  
(13) I
NTELLECTUAL PROPERTY RIGHTS  
 
Paragraph 157  (US) Please indicate which "legislative enactments " have actually been carried out or enacted by 
Parliament, or have they only been proposed to be submitted in the legislative process? 
 
Answer 
Most of the proposed legislative amendments a nd enactments are still pending in various stages of 
legislative process.  
 
Developments at the Policy level  
 
Paragraph 158: The report by the Government informs a bout the Eleventh National Economic and 
Social Development Plan, to be implemented 2012-1016.  
  WT/TPR/M/255/Add.1 
 Page 111  
 
 
 
 
  (EC) Could Thailand elaborate more on the cont ent of the Creative Economy policy and describe in 
practical terms which concrete measures will be ta ken and projects launched in order to carry this 
policy out?  
Answer 
The Eleventh Social and Economic Development Plan  puts creativity and innovation at the center of 
the growth strategies marked by an attempt to  boost growth by enhancing skilled and creative 
workforce; building strong and well diversified services sector, strengthening intellectual property 
regime and, capitalizing on own rich culture.  
Thailand Creative Economy Agency (TCEA) has been established as a permanent office under the 
Office of the Prime Minister to ensure the policy is  translated into tangible results. This new agency 
will coordinate overall implementa tion and serve as a think tank and intelligence unit to propel 
Creative Economy Policy in Thailand.   
Paragraph 159 
 
(Australia) What are the twelve point comm itments in the Creative Thailand policy?  
 Answer  
1. The Government will establish a "Creative Ec onomy Agency" within 6 months to oversee the 
implementation of Creative Economy. 
2. The Government will enhance the efficiency of  the entire intellectual property management 
system within 6 months. 
3. The Government will develop ICT infrastructur e to support creative industries such as 3G 
system, Fiber Optics, Broadbrand and WireMax. 
4. The Government will enhance creative learning in the national curriculum.  Educational 
institutions will provide courses and textbooks on Creative Economy and intellectual property 
by the next academic year in order to cultivate creative thinking in the Thai education system. 
5. The Government will support specialisation in the areas of design and other forms of art.  
Systematically increase the number of personnel and expand creative workforce. 
6. The Government will promote Creative Economy at the regional and community levels in 
order to create added value of traditional knowledge  and generate income to the local people. 
7. The Government will enhance the professional standing of creative Thais whose 
accomplishments earn international recognition.  Ensure that the "winning projects" create 
wave of "Thailand, the land of Thinkers" and popularise Thai are and culture in the world 
community. 
8. The Government will provide spaces for activitie s and exhibitions re lated to creativity 
(creative Zone), such as visual art, zone, performing art zone.  The spaces are open for creative thinkers and creators to express their ideas or exhibit their works free of charge. 
9. The Government will establish Creative Econom y Fund and support other funding sources to 
enable new entry and value creative of  business operators particularly SMEs. 
10.  The Government will undertake new invest ment promotion measures to support creative 
 industries including legislative changes and enact new law to promote and support Creative 
 Economy, promote private sector investment and value-added. 
11.  The Government will promote marketing and commercial activities and promote exports of 
 creative products to the global marketplace. 
12.  The Government will allocate a budget of 20,000 million Baht from the Strong Thailand 
 Stimulus Plan, to be disbursed over 3 years, to lay the groundwork and push the agenda  forward. WT/TPR/M/255/Add.1 
Page 112 
 
 
 
 
  Paragraphs 162-163 
 
(Australia) In relation to the proposed anti-unaut horised camcording legislation, is it a new and 
separate piece of legislation from the Copyright Act. What does it cover?  
 
Answer 
It is concluded that the anti-unauthorised camcording legislation will be incorporated in the Copyright 
Act.  A separate criminal offense for copyright infringement by unauthorised camcording in movie theatres will be provided for.  Nonethel ess, the drafting process is still pending. 
 
(Australia) Can Thailand provide details of the propo sed amendments to the Copyright Act to provide 
better protection to works in digital form? In particul ar are there provisions to protect and facilitate 
the digital economy such as ISP safe har bours and technological protection measures?  
 
Answer 
The draft amendment of the Copyri ght Act incorporates some of th e core elements of the WIPO 
Internet Treaties namely the Technological Pr otection Measure (TPM), Right Management 
Information (RMI) and the safe harbour provisio ns which provide limitation to internet service 
providers’ liability regarding the IPR violation on their sites.  
(US) What is the status of Thailand’s pending legislation regarding landlord liability, unauthorized 
camcording, implementation of the WIPO Intern et Treaties, and general amendments to the 
Copyright Act (including digital works)? Is the reference to "second" liability in the Copyright Act 
intended to cover all types of contributory and vi carious liability, commonly referred to as "landlord 
liability"? What is the status of legislation to pr ovide Thai Customs officials with the authority to 
seize suspect goods absent a formal complaint by a rights holder?  What is the status of "the 
amendment to the Trademark Act to provide prot ection to unconventional marks and the revision of 
the penalties set forth in the Trade Secret Act"?   
 
Answer  
Landlord liability: The Department of Intellect ual Property convened a m eeting with relevant 
government agencies and IPR right holders to consid er available courses of action under existing laws 
including the deployment of administrative measures.  In 2012, the Department will revisit the idea of 
amending Copyright Act B.E. 2537 (1994) and Tradem ark Act 2534 (1991) with a view to criminalize 
landlord who facilitate IPR infringing activities. 
 Unauthorized camcording:  As suggested by  the Council of State, the Department of 
Intellectual Property is drafting an amendment to the Copyright Act B.E. 2537 (1994) to incorporate the anti-camcording provision into such Act.  The draft amendment will be 
submitted to the Cabinet in due course. 
 General amendment to the Copyright Act (incl uding works in digital environment) is under 
the final review of the Council of State. 
 The draft amendment to the Trademark Act is now  under the consideration of the Parliament.   
 
Paragraph 173:  The report by the Government gives an overview on enforcement activities.  
 (EC) Could Thailand elaborate more on what exactly are the enforcement powers of the Customs 
department (including the actions on goods for ex port for example) and how th ese have been used by 
the Customs officials in  the previous years? 
   WT/TPR/M/255/Add.1 
 Page 113  
 
 
 
 
  Answer 
By virtue of Section 5 of the Export and Import Act B.E. 2522, the Ministry of Commerce issued 
notifications, rendering trademark counterfeit goods and copyright pira ted goods fall into the category 
of "prohibited goods". Import and export of these prohibited goods are explicitly outlawed by section 
27 of the Customs Act B.E. 2469 (1926), thus em powers the Customs officials to intercept such 
goods. 
 
Page 30 
 
(Australia) The number of infringing goods that  were destroyed seems to be significantly small 
compared to the number of goods that were sei zed (for example 878,757 pieces destroyed compared 
to 4.3 million pieces seized in 2010). Was there a particular reason?  
 
Answer 
There are two main reasons for this. First, the government agencies can only lawfully destroy 
infringing goods where the cases are final. This could mean that the cases have reached the final 
judicial decision and the Court has ordered the go ods to be destroyed, or the cases are settled under 
the Customs Law. Since the number of seizures (for instance, 4.3 million in 2010) comprises of any 
goods which enforcement agencies seized after the arrest. These seizures may not necessarily proceed 
through to the court. For instance, under the Copyri ght Act, the case may be terminated by settlement 
between the IP offender and the IP right holder.  Furthermore, the same legislation stipulates that infringing goods in copyright cases belong to the IP 
right holder. In both cases, the seizures will be return ed to the right holder who may decide not to 
destroy these goods. In other instances, the cases may be dismissed and goods are returned to the 
defendant.   
 
Second, where the cases are final, the infringing good s may not be destroyed all at once and by the 
same government agencies. The figure referred to above (878,757 pieces) is the number of infringing 
goods destroyed in three destruction ceremonies organized by the Department of Intellectual Property 
together with the Royal Thai Police, the Depa rtment of Special Investigation, the Customs 
Department and the IPR right holders, and thus , does not represent the total amount of infringing 
goods destroyed in 2010 in Thailand.  In many inst ances, it may not be feasible, practical or cost-
effective to dispatch infringing goods for destruc tion in these ceremonies and therefore the relevant 
authorities would destroy these goods themselves, thus leaving a significant number of destroyed 
goods unreported.  
Paragraph 175 
 
(Australia) What are the enforcement activities against IPR infringements that are not in the form of 
goods (for example illegal file shar ing or unauthorised downloading)?  
 
Answer 
Thailand has intensified its enforcement efforts ag ainst camcording and internet piracy in recent 
years.  
 
To tackle illegal camcording in cinema theatres, th e Department of Intellectual Property is currently 
amending the Copyright Act to insert specific anti- camcording provisions. Th e draft amendment will 
subsequently be submitted to the Cabinet. In a meantime, all the relevant government agencies are 
seeking to utilize existing legislation and rul es to prosecute camcorders. Amongst various 
enforcement agencies, the Royal Thai Police has take n efforts in the fight against illegal camcording; 
its recent activities included the launch of several awareness raising campaigns at cinemas in Bangkok WT/TPR/M/255/Add.1 
Page 114 
 
 
 
 
  and organization of trainings for cinema staffs on camcording detection. In addition to these 
government’s activities, IP right holders, most notab ly the Thai National Federation of Thai Film 
Associations and the Motion Picture Association of America, as well as cinema owners has also been 
playing proactive roles in preventing camcordi ng. As a consequence, warning signs against 
camcording are now displayed in most cinemas, s hort features educating the public about camcording 
are screened prior to the movie showing and, in many  cineplex, cinema staffs are instructed to patrol 
the screening room on a regular basis.   
 As for internet piracy, the Thai government has taken various initiatives to forge cooperation with 
internet service providers (ISPs) and to enhance the capacity of enforcem ent agencies. On the 
legislative front, the Ministry of Commerce by the Department of Intellectual will continue to push 
forward the enactment of ISP limit ed liability provisions under the Copyright Act.  Furthermore, it has 
been advocating an amendment to the Computer Crim e Act so as to broaden the scope of the Act to 
cover all IP online crimes. This will enable th e process of blocking websites selling IP infringing 
goods, or facilitating copying and sharing of copyrigh ted works. On capacity building, many agencies 
have conducted trainings/seminars/ workshops on the subject of internet piracy including the 
Department of Intellectual Property and the Royal Th ai Police. In 2011, for instance, the Department 
of Intellectual Property organized a workshop on ne w investigative techniques in IP cases for 600 
police officers from the Metropolitan Police Bureau , the Central Investigation Bureau and the 
Provincial Police Region 1 and 8, as well as conducted a workshop in partnership with the USPTO on 
internet piracy for police officers, customs offi cers, DSI officials, public prosecutors as well as 
officials from the Central Intellectual Property and International Trade Court. The Royal Thai Police 
also organized a seminar on Suppression against Internet Piracy in cooperation with INTERPOL. 
 
(Australia) Are there any statistics on the scale or extent of this kind of infringement? 
 Answer 
No information available.  
(Australia) Are there reported figures on the impac t of IPR infringement on Thailand’s economy and 
relevant industries (for example economic loss, bankruptcies etc.)? 
 
Answer 
No information available. 
 
(Australia) Have there been any initiatives re cently implemented to  enhance enforcement? 
 Answer 
Mentioned above.  
(Australia) Are right holders satisfied with penaltie s/ sentences applied by the IP court? Also, are 
they satisfied that the Court has an adequate understandi ng of the economic harm caused by piracy 
and counterfeiting?  
Answer No information available. 
 
Paragraph 178 
 
(Australia) Does Thailand receive support from oth er countries in relation to capacity building? 
  WT/TPR/M/255/Add.1 
 Page 115  
 
 
 
 
  Answer 
Yes, we receive support from other countries and in ternational organizations in relation to capacity 
building through bilateral and re gional cooperation frameworks with  WIPO, US, EU and Japan for 
example.  
(Australia) Are right holders satisfied with penaltie s/ sentences applied by the IP court? Also, are 
they satisfied that the Court has an adequate understandi ng of the economic harm caused by piracy 
and counterfeiting?  Answer 
Yes. 
 (14) Competition Policy (15) Initiative in the WTO V. REGIONAL TRADE ARRANGEMENTS AND ECONOMIC COOPERATION (1) ASEAN   
 
Paragraphs 191-192 
 
(Japan) Please inform us of the category of prof essionals if ASEAN has negotiated or is negotiating 
MRAs on any other professionals than the seven cate gories of professionals liste d in paragraph 191? 
 Answer  
So far ASEAN have signed 7 MRAs where 5 have b een concluded and entered into force, namely 
Engineering, Architect, Medical, Nursing and Dental, while the framework arrangements for 
Accountancy and Land Survey are in place and to  be negotiated and concluded in the future.   
 
(Japan) Which MRAs listed in paragraph 191 have entered  into force? Please inform us of the current 
status and future stages for implementation of mu tual recognition of each professional category and 
provide the text of the implementation ag reement for each professional category, if any. 
 
Answer ASEAN is focusing on the existing MRAs which have  been concluded, to be fully implemented 
before consider developi ng new professional MRAs. 
 
(Japan) Is ASEAN planning to standardize a medical system in the region as a project of the ASEAN 
Economic Community by 2015, while ASEAN ha s concluded MRAs on Nursing services, Medical 
Practitioners and Dental Practitioners? 
 
Answer  
As for the standard medical system, so far, the st andard medical system in the region has not been 
developed, currently ASEAN is in the process of  exchanging and compiling each member’s domestic 
regulations as well as core competency standard w ith the aim to develop ASEAN core competency 
standard in the near future. 
 
(Japan) In the ASEAN Mutual Recognition Arrangeme nts on professionals, there exists a provision on 
the Dispute Settlement Mechanism on related matte rs on mutual recognition. Japan would appreciate 
it if Thailand could provide information on wheth er any dispute settlement procedure has ever been 
undertaken based on these provisions? WT/TPR/M/255/Add.1 
Page 116 
 
 
 
 
  Answer 
No dispute settlement procedure has ever taken place.  
 
(2) APEC 
(3) Asia-Europe Meeting (ASEM) (i) Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation 
 (BIMST-EC) 
(ii) Asia Cooperation Dialogue (ACD) (iii) Ayeyawady-Chao Phraya-Mekong Econ omic Cooperation Strategy (ACMECS) 
(iv) Indonesia-Malaysia-Thaila nd Growth Triangle (IMT-GT) 
(v) Greater Mekong Subregion (GMS) (vi) Free trade agreements 
 
(Norway) In WT/TPR/G/255 chapter V (vi) informa tion on free trade agreements are outlined. We 
would be pleased to receive information on wheth er maritime transport services are included in these 
agreements.   
 
Answer Maritime transport services are included in some fr ee trade agreements such as Thai-Australia FTA, 
Thai-India FTA, Thai-Japan FTA (JTEPA), ASEAN-China FTA. 
(vii) Bilateral arrangements 
(viii) Regional arrangements (ix) Financial and technical cooperation 
VI. FUTURE ECONOMIC AND TRADE POLICY DIRECTIONS  
 Border Trade 
 
(India) Report of WTO and Thailand: In both the Repo rts, no details of Thailand’s trade through land 
border have been indicated. What steps have been taken by Thailand to encourage border trade with 
neighbouring countries? Has Thailand entered into transit-trade agreements with any country? If so, 
details of such agreements?  
 
Answer 
One of the steps Thailand has taken to encourage border trade is to provide transport facilitation. 
Many Agreements and MOUs regarding transit trans port are drafted, some are signed. For example, 
Thailand is a party to the regional and sub-regi onal agreements, which are AFAFGIT, AFAFIST and 
GMS-CBTA. Moreover, Thailand has entered into b ilateral agreements with  Malaysia and Laos: 
MOU between Thailand and Malaysia on the Movement in Transit of Perishable Goods by Road from 
Thailand through Malaysia to Singapore and Agreement between THAILAND and LAO PDR on 
Road Transport respectively.  WT/TPR/M/255/Add.1 
 Page 117  
 
 
 
 
  REPLIES PROVIDED AFTER  THE MEETING AND  
REPLIES TO THE FOLLOW-UP QUESTIONS 
 
ASEAN (third set) 
Reference: Report by the Secretariat 
Page 105 -106, paragraphs 19-21 on Domestic support in Agriculture 
According to the Secretariat Report, Thailand su pports agriculture in a number of ways. One of 
which are programs that directly affect production and trade, and this is specific ally true for rice.  
Since 2001, there had been two rice support schemes  which Thailand implemented interchangeably, 
the mortgage scheme and the price insurance scheme.  In Octob er 2011, the mortgage scheme was re-
introduced where the policy provides low interest loan to farmers.   
Could Thailand elaborate the long term direction of th is rice policy?  What could be the flow on effect 
of this policy on other Members’ food security wher e dependence on rice staples is high, especially in 
the Asian Region?   
Answer 
Thailand rice policy for each year will be stipulat ed in accordance with ec onomic circumstance and 
policy of such current government to help dom estic farmers. However, the government would 
carefully take into account of the food security po licy of ASEAN members when stipulating Thai rice 
policy. 
 
BRAZIL (second set) 
1. Concerning document WT/TPR/S/255, page 90, paragraph 153, please explain the exemption for 
"other personal use" on computer software.  
Answer 
 Section 35 of the Copyright Act B.E. 2537 provides a number of specific actions against 
 copyrighted software that do not constitute copy right infringement.  Such actions must be in 
 compliance with the requirements of the first paragraph of Section 32.  
 Some of the actions under Section 35 may be considered as "personal use" for example; 
o using for the benefit of the owner of the copy of the computer program, 
o for the person who legally obtains the comput er program, making a reasonable quantity of 
 copies of such a program for the purposes of maintenance or prevention of loss.   
2. Concerning document WT/TPR/S/255, page 93 , paragraph 165, please explain the "Data 
Protection System" of Thailand, in particular how third parties may use such protected data for 
approval of generic versions of medicines.  
Answer 
The undisclosed test data submitted to the Food a nd Drug Administration for marketing approval is 
protected against commercial use by the third party under Trade Secret Act. 
 
3. Concerning document WT/TPR/S/255, page 95, paragraph 172, please explain how the exclusive 
right to control imports may be exhausted. Please refer to the sentence indicating that the "right WT/TPR/M/255/Add.1 
Page 118 
 
 
 
 
  expires (is exhausted) if the patent owner has allowe d a third party to produce or sell the product, 
including the right to prevent parallel imports." 
 Answer 
Thailand applies principle of intern ational exhaustion.  S ection 36 of the patent law provides that even 
though the patentee has an exclusive right to use, sale, having in possession for sale, offering for sale 
or importation of a patented product, such rights are exhausted when the patent product has been 
produced or sold with the authorization or con sent of the patentee regardless of the territory. 
 
4. Concerning document WT/TPR/S/255, page 96 , paragraph 173, please provide additional 
information on the compulsory licensing of Efavi renz, Kaletra and Clopidrogel, especially regarding 
any eventual plan to produce such drugs locally. 
 
Answer 
The Government Pharmaceutical Organization (GPO) has already produced, on a non-commercial 
basis, the generic version of Efavirenz, Kaletra and Clopidrogrel under the compulsory licenses.  5. Concerning document WT/TPR/S/255, page 97 e 98, paragraph 177, please provide examples of 
measures for the "eradication of intellectual property infringement on the internet". 
 Answer 
 Measures undertaken to combat intellectual pr operty infringement on the Internet include; 
o the amendment to the Copyright Act to impr ove the protection of work in the digital 
 environment, 
o proposed amendment to the Computer Crime Act to authorize competent authority to block 
 pirate websites, and o various capacity building programs for en forcement officers on the prevention and 
 suppression of IPR infringement on the Internet. 
 
6. Concerning patent protection, please explain whic h are the patentable subject matters in Thailand. 
Please refer to the patentability of second indi cation/use (or new indication/use), polymorphs, 
selection patents, Suisse formula, Markush claims and others likewise.  Answer 
 Patent Act B.E. 2537 (1994) does not specifically identify subject matters which are 
 patentable, therefore, subject to the exceptions provided in the Act, a patent is available for 
 any invention, whether products or processes, in all fields of technology. 
 Section 9 of such the Act provides that the following inventions are not protected under the 
 Act; o naturally occurring microorganisms and their components, animals, plants or extracts from 
 animals or plants; 
o scientific or mathematical rules or theories; 
o computer programs; 
o methods of diagnosis, treatment or cure of human and animal diseases; and 
o inventions contrary to public orde r, morality, health or welfare. 
 Section 5 of the Act provides that a patent may be grant only for an invention only when the 
 following conditions are satisfied; o The invention is new, 
o The invention involves an inventive step, and 
o The invention is capable of industrial application.  WT/TPR/M/255/Add.1 
 Page 119  
 
 
 
 
   Section 6 of such the Act provides that an invention is new if it does not form in whole or in 
 part existing state of the art.  Therefore, second indication/use may not be patentable in 
 Thailand. 
 Section 7 also provides that an invention shall be  considered involve an inventive step if it is 
 not obvious to the person with ordinary skilled in the art. 
 Therefore, the patentability of polymorphs, selection patents, Suisse formula, Markush claims 
and others likewise shall be subject to the conditi ons set forth in Section 5, 6 and 7 above.  The 
determination thereof is on a case by case basis.  7. Regarding the ASEAN treaties, please explai n if there are any clauses on intellectual property 
rights.  Answer  
 The ASEAN member countries entered into ASEAN Framework Agreement on Intellectual 
 Property Cooperation which was done at Bangkok, Thailand on 15 December 1995.  The 
 Agreement aimed at strengthening the cooperation among ASEAN member countries in the 
 field of intellectual property and seeking for the possibility to set up IPR protection and  registration systems and standards among ASEAN countries.  
 ASEAN Working Group on Intellectual Property Cooperation (AWGIPC) has been set up as 
 a forum for head of ASEAN IP offices to m eet at least twice a year to discuss on IPR 
 cooperation among ASEAN member count ries and with dialogue partners.  
 
8. Regarding the protection and enforcement of intellectual property rights, please provide 
information of any Free Trade Agreement Thailand has signed or is currently  negotiating containing 
such clauses."  Answer 
Free Trade Agreements Thailand has signed that contain the provisions on the protection and 
enforcement of intellectual property rights are the Th ai – Australia Free Trade Agreement, the Thai – 
New Zealand Free Trade Agreement and the Japan  – Thailand Economic Partnership Agreement. 
 
THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES (6) TRADE AGREEMENTS AND ARRANGEMENTS (ii) Preferential, regional and bilateral arrangements (c) Bilateral arrangements 
Pages 39&40, paragraphs 59&67 
 
It is reported that Thailand believes that bilateral free trade agreements can be an effective catalyst 
for liberalization and eventually a building blo ck for the multilateral trading system. Among the 
countries that have been considered by Thailand  for bilateral free-trade agreements are Chile, 
Pakistan, Papua New Guinea and Hong Kong, China.  
What are Thailand’ s main considerations in selecting potential future FTA partners? 
 Answer 
In selecting FTA partners, Thailand considers the ex isting markets and at the same time looks at the 
potential future markets, among others, as a gatewa y to the region. These approaches are aimed to 
strengthen and deepen Thailand’s trade relati onship with both old and new markets.   
 WT/TPR/M/255/Add.1 
Page 120 
 
 
 
 
  III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) MEASURES DIRECTLY AFFECTING IMPORTS 
(iv) Contingency measures (b) Anti-dumping and countervailing measures 
Page 55, paragraph 43 
 
The Department of Foreign Trade is required to inform petitioners, plus exporters and importers of 
the product, or their representatives, of the initiation of an investigation.  
According to our information, during the investi gation, foreign producers/exporters are required to 
fill in pre-questionnaires or full-questionnaires and submit them by a certain deadline. However, not 
all documents provided by the Department are in E nglish, such as petitioner's complaints, which have 
created a hindrance to producers/exporters being able to respond in time.  
Does Thailand have plans to provide all relevant info rmation in English to all the relevant parties in 
the future?  Answer 
Anti-dumping proceeding of Thailand is set out to best  comply with all rights and obligations under WTO 
Agreement even though the point of transl ation is absent from such agreement. 
With the best comply, the English version of initiation of an Anti-dumping and subs idies investigations and 
disclosure of relevant confidential and non-confiden tial information are sent to each known exporter or 
their representatives. Similar to those Members which English is not  official language, the Thai Anti-dumping and 
Countervailing Act requires domestic industries to offici ally file petition or submit their response in Thai 
version. The petitioner’s compliant is attached to the notification of the initiation. Thailand provides 
reasonable period of time to all interested parties to express their view on the initiation and also on the 
result of the investigation. An extension is normally granted by our investigating authority upon request of 
interested parties.    (4) OTHER MEASURES AFFECTING INVESTMENT AND TRADE (v) Government procurement and countertrade (a) Government procurement 
Page 87, paragraph 142 
 
The Thai Government Procurement website (in Th ai only) gives access to the e-Auction system and 
provides information on selection criteria, the resu lts of auctions, and details of the decisions.  
In the interests of improving transparency and accessibility for businesses, does Thailand have plans 
to provide key information in English on the website?   
 
Answer 
Thailand has provided government procurement info rmation in English in case of international 
bidding for foreign supp liers participating.  
B. WTO Secretariat Report (WT/TPR/G/255) 
III. MACROECONOMIC AND STRUCTURAL POLICIES 
(2) FISCAL POLICY  (a) Trade and investment policies 
Page 12, paragraph 46 
  WT/TPR/M/255/Add.1 
 Page 121  
 
 
 
 
  Thailand indicates that several existing laws, i.e.  the Competition Law, Foreign Business Act, and 
three Insurance-related Acts, are at present under r eview. All have been amended or drafted by taking 
into account the full recognition of the role of foreign investment in the Thai economy.  
It would be appreciated if Thailand could please adv ise us of progress on this legislation and provide 
further details as follows:     
What are the main elements of the drafted amendments?   
Answer 
Regarding three insurance Acts, details as attached. 
Is information on these amendments or  drafts available in English?  
Answer 
Regarding three insurance Acts, No.  
Will these amendments or drafts be made available for public comment?  
Answer 
the drafted law is to revise insurance company’s sh areholding and directors’ structure in order to 
increase strengthening of insurance business and to dictate the debt payment fund to pay any debt occurred by an insurance company in which its life insurance license been revoked, which is benefited 
to private sectors   THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU 
SECOND SET 
 WTO Secretariat Report (WT/TPR/S/255) 
 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(1) OVERVIEW 
Page 18, paragraph 5 
 Under Thailand’ s foreign investment regime, negative lists restricting levels of foreign direct 
investment in some activities and in the restrict ed industries sector have remained unchanged. 
Amendment of certain legal provisions is under wa y to prevent foreign investors from using nominee 
shareholders or preferential voting rights to take cont rol of Thai companies in restricted sectors. U.S. 
investors receive preferential treatment under a 1966 Treaty. 
Our questions are as follows:  
Given the continuous growth of its economy, why does Thailand not review or reduce the number of 
restricted activities in its negative lists in order to further boost economic momentum? 
Why does Thailand consider it necessa ry to further protect the benefits of Thai stockholders through 
the amendment of certain legal provisions? 
To which sectors do these legal amendments mainly  apply? Were the opinions of foreign investors 
taken into account during the drafting of those provisions? 
In which sectors do U.S. investors enjoy pr eferential treatment under the 1966 Treaty? 
 
Answer 
Thailand participated in the third review of th e MFN exemptions in November 2010 and March 2011 
under the purview of the Council on Trade in Servi ces, and has provided our response concerning the 
treaty between Thailand and the US.  It appears that  the recent political changes in Thailand have led WT/TPR/M/255/Add.1 
Page 122 
 
 
 
 
  to a legal requirement to impose necessary procedures prior to eventual legislative approvals that 
would finally lead to the commencement of international trade negotiations, as well as the 
implementation of the final results of negotiations.  These procedures require, inter alia , the conduct 
of a feasibility study of proposed free trade agreements, public hearings, and parliamentary reviews.  Pending the uncertainty on a constitutional setting, these steps in the procedures necessitate a new 
enactment of legal instruments  and must be in accordance with the constitutional requirements. 
 (5) TRADE LAWS AND REGULATIONS 
Page 23, paragraph 21 
 As indicated in the report, efforts continue to  streamline business’ s dealings with the government, 
particularly through various online services, such as the new "national single-point e-starting 
business service", which cut the average processing ti me for business registration from 4 days to 90 
minutes. Reforms of this kind are needed to make Th ailand more attractive for foreign and domestic 
investors. 
Could Thailand please describe the main functions of the "national single-point e-starting business 
service" and benefits that it provides? 
What have been the comments and reactions of fore ign and domestic investors to this service so far? 
What difficulties, if any, have been encountered with this service, and how have they been resolved? 
What other online streamlining procedures has Thailand introduced with a view to reducing the 
business costs of investors?  Answer 
Thailand has released the e-Starting Business proj ect in 2010 with an aim to make the business 
registration in Thailand become easier, faster, and ch eaper.  In 2009, start up a business in Thailand, 
entrepreneur needs to visit 3 government agenci es and to obtain 3 business numbers which are 
business registration number at Department of Busi ness Development, taxpayer identification number 
at Revenue Department, and employer account number at Social Security office.  This process took 
approximately 4 days to complete.  Department of Business Development with Revenue Department 
and Social Security Office announced the "4S con cept" to put the e-Starting business project into 
practice including Single Point, Single Form, Single Document, and Single Number.  This concept allows entrepreneurs to visit only Department of Business Development as a Single Point for start up 
a business and to receive all 3 numbers at once without visit other 2 government agencies and the 
business data that received at Department of Busi ness Development will be transferred to the other 
2 government agencies for record management. 
 
The e-Starting business project was launched into 2 phases as following; 
Phase 1 Single Point: To receive 3 business numbers at Department of 
Business Development 
 Single Form: Combine 3 different forms into 1 at Department of 
Business Development 
 Single Document: Eliminate unnecessary documents required and to 
submit at Department of Business Development 
Phase 2 Single Number: Linking database of 3 government agencies and allow 
entrepreneur to have only 1 business number 
 
 
 
 
  
 
  WT/TPR/M/255/Add.1 
 Page 123  
 
 
 
 
  The e-Starting business project offers benefits for both entrepreneurs and count ry as following table; 
Benefits for Entrepreneurs Benefits for Country 
6. Reducing the process of starting business from 7 steps 
to 5 steps 
7. Reducing the total process time from 4 days to 60 
minutes 
8. Reducing the contact point from 3 to 1, thus a travel 
cost saving of 400 baht (estimate 200 baht/trip) 
9. Reducing the forms and documen ts from 3 sets to 1 set 
10. Immediate business starts up 6. Modernize system that allows easier, faster, and 
cheaper business start up 
7. Significant contribution to the e-Government initiative 
with a One Stop Services integrating functions of 4 agencies 
8. An introduction of inter-agency collaboration 
9. Reducing the working process of government services, 
thus freeing up resources 
10. A significant reduction of paper usage 
 
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) What have been the comments and reactions of foreign and domestic investors to this service so far?  
Answer 
The e-Starting business project was a significant achievement for Department of Business 
Development and other related government agencies to  improve the business register system that offer 
benefits for business operators in both foreign and dom estic.  This project established a simple Single 
Point contact and make business registration much easier and faster. 
The statistic record of number of business registration shows that more than 80% of business 
operators have received the services under e-Starti ng business which is equivalent to approximately 
45,000 corporations throughout Thailand.   The Department of Business Development has also won 4 Quality of Public Service Awards from 
Office of the Public Sector Development Commission of Thailand (OPDC).  The awards were separated as 3 outstanding awards and 1 consol ation award.  The e-Starting business project was 
given to be one of the 3 outstanding awards of Depa rtment of Business Development.  In addition to 
this, these awards were given by the Prime Minister of Thailand on December 16
th, 2010 at the Royal 
Thai Navy Convention Hall. 
 
(Separate Customs Territory of Taiwan, Penghu, Ki nmen and Matsu) What difficulties, if any, have 
been encountered with this service,  and how have they been resolved? 
 Answer 
The difficulties in running the e- Starting Business project can be categorize into 3 main specific 
categories as follow; 
Process 
The differentiation in structure and process a nd capability of staffs in each organization. 
Capability of staffs in specific tasks and skill to  adapt new system into knowledge management. 
The confident in collaborate the government agencies. Law and regulations 
Based on the history of Thai government system, each organization usually operates their own work 
that the law regulates.  The e-Starting Busin ess project will be the new challenges for Thai 
government system. The changes in law and regulations may affect some tasks and the result of new organization 
structure.  Therefore, the law and regulations process were needed to focus carefully throughout 
3 departments that were involved. 
Technology 
The differences of the system in each department in cluding data entry system, data filing, and data 
recoding. The process of converting 3 different numbers ( business registration number 13 digits, taxpayer 
identification number 10 digits, and employer account number 16 digits) into 1 as Single Number. 
 
(Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu) What other online streamlining WT/TPR/M/255/Add.1 
Page 124 
 
 
 
 
  procedures has Thailand introduced with a view  to reducing the business costs of investors? 
 
Answer 
In term of reducing cost and offering online servi ces, Department of Business Development offers 
2 services online that enable business operators to co mplete some transactions within the "starting a 
business" categories which are Online business registration and Online reserving a company name.  
The 2 services are as follow; 
Online business registration The online business registration en ables business operators to prepare forms and documents that are 
required for register a business and send them to th e registrar.  These forms and documents will be 
verified and confirmed by the registrar online and business operators are required to bring them to the 
Department of Business Development for register the business (fast track registration).  
Online Reserving a company name 
The online reserving a company name enables business operators to do the transaction online (Check 
and Reserve name) without going to the Department  of Business Development offices.  In addition, 
there is no fee for online transaction comparing to the reserving a company name walk-in service of 
20 Baht per time.   (ii) Financial services (a) Banking and finance Legal framework 
Page 119, paragraph 79 
 
As indicated in the Report, upon assessment of the results of proposed measures under FSMP Phase II 
to improve competitiveness in the financial services sector, and subject to the need to fill in any 
remaining gaps in the financia l system, the authorities will consider the possibility of allowing new 
entrants to the market. 
According to Thailand’s WTO commitments, newly established branches of foreign banks are subject 
to approval by the Minister of Finan ce with the consent of the Cabinet.  
Would the Thai government please elaborate further on its policy and blueprint for allowing new 
market entrants into the banking sector, and in pa rticular on any plans for granting licences to new 
branches of foreign banks?  
Would the Thai government please indicate the sub- sector(s) of the financial industry where gaps exist 
that need to be filled in?   
 Answer 
Comprehensive and extensive financial liberali zation is in the FSMP Phase II above, for example 
Allow the existing foreign banks branches to open two additional branches since 2010 
Allow the existing foreign banks branches to beco me subsidiaries with additional branches and off-
premise ATMs to the maximum of 20 branches and 20 off-premise ATMs. 
For a subsidiary license, foreign investors can hold more than 95% of shares in the financial 
institution.   WT/TPR/M/255/Add.1 
 Page 125  
 
 
 
 
  CHILE 
 
WT/TPR/S/255 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
 
Thailand continues to operate a generally liberal fo reign investment regime.  Negative lists restricting 
levels of foreign direct investment in some activ ities have remained unchanged.  Amendment of 
certain legal provisions is under way to prevent fo reign investors from using nominee shareholders or 
preferential voting rights to take control of Thai companies in restricted sect ors.  US investors receive 
preferential treatment, being exempt from most restrictions on foreign direct investment under a 
1966 Treaty. 
 
Will these amendments include a formal limitation on  the partial acquisition by foreign investors of 
ownership of companies in certain sectors?  Answer 
At present, the Foreign Business Act B.E. 2542 (1999)  has been in force. No amendment has been 
made.  
The Board of Investment (BOI) does not restrict fo reign ownership under the e ligible list of activities 
for investment promotion. However, the BOI’s el igible activities are subject to related laws and 
regulations of other government agencies, which may have foreign restriction in certain sectors. (BOI) 
 
In early January 2007, despite widespread oppos ition from foreign investors, the Government 
approved plans to amend the FBA to include voti ng rights as another criterion for determining which 
juridical persons are foreign in restricted sectors.   The proposed amendments covered the definition of 
"foreigners", punishment/penalties, and the "List 3" businesses in which Thais are not competitive (see also Chapter IV(1)(i)).  Although the changes are not as far reaching as initially expected, the 
move seems to have compounded in vestor concerns over the unpredictability of policy.  Companies 
that seek or have already received Board of Invest ment promotion will not be subject to the proposed 
ownership rule revision, except in those activities sp ecified in List 1 where the Foreign Business Act 
requires Thai majority ownership, and in activ ities that fall under specific laws such as 
telecommunications, and marine, air, and land tran sport.  Currently, seven categories covering over 
273 activities in both manufacturing and services are eligible for BOI promotion. 
 
Is it possible for new investors to benefit from the Board of Investment's investment promotion 
measures without being affected by the ownership rule revision?  Answer 
FBA is a general law, which applies to all fore ign business entering Thailand. The BOI Investment 
Promotion Act and investment promotion measures is separate from the FBA with their own approval 
criteria and eligible list of activities for investment  promotion, which does not supersede related laws 
and regulations of other government agencies. For new investors to benefit from the BOI’s investment 
promotion measures, they can apply if their busin ess activities are listed under the eligible list of 
activities for investment promotion.  (BOI) 
Under the Investment Promotion Act B.E. 2520 (1999) , Thailand allows foreign equity participation 
of up to 100 percent in many activities eligible for investment promotion.  Currently the Investment 
Promotion Act is still active, therefore, new inv estors can benefit from the Board of Investment 
promotion measures. However, when the Investment Pr omotion Certificate that an investor receives is 
expired, an investor and his investment must comply  with the law applicable at that time including the 
ownership rule.  WT/TPR/M/255/Add.1 
Page 126 
 
 
 
 
  (2) General constitutional and institutional framework 
 
Regarding the Thai judicial system, which includes an International Trade Court:  
What is this court, and what a re its powers and competences under Thai law?  Is it a sort of customs 
court?  What is its jurisdiction?  Is it limited to its territory?  Is it a decen tralized or centralized 
entity? 
 Answer 
The Central Intellectual Property a nd International Trade Court is the specialized court in Thailand 
adjudicating intellectual property and international trade cases both civil and criminal cases.  The 
Territorial Jurisdiction of the court covers the whole Bangkok Metropolis, Samutprakan, Samut 
Saklon, Nakhon Pathom, Nonthaburi and Pathum Than i Provinces.  At present, before establishing the 
Regional Intellectual Property and International Trade Court, the territorial jurisdiction of the court 
extends throughout the Kingdom.   The judicial procedures of the Court are simplif ied and modernized.  For example, full day and 
continuous hearings, speedy inquiry and orders fo r preliminary injunctions, possibility of in camera 
proceedings, possibility of appointing expert witness  as amicus curial, use of video conferencing for 
the examination of witness outside the court, in cluding oversea, upon request, documentary evidence 
in English that does not concern the main issues in dispute may not have to be translated into Thai, 
etc.  Regarding the internalization of trade agreements concluded under Thai law. 
 
What are the internal formalities for vali dating the agreement under your domestic law? 
 Answer 
The Executive Branch has the prerogative to conclude  trade treaties with countries and international 
organizations except:  
- treaties providing for a change in the Thai terr itories or the Thai extraterritorial areas over 
which Thailand has sovereign right or jurisdic tion under any treaty or international law; 
- treaties requiring the enactment of an Act for its implementation; 
- treaties that have extensive impacts on economic  or social security of the country; or  
- treaties that have significant commitments in trade, investment, and on the budget of the 
country.  
These treaties shall be submitted for the National Assembly’s approval. 
 
CHILE (additional) 
 
WT/TPR/S/255 
 
(1) S ERVICES  
(i) Main features and multilateral commitments 
Overall, the liberalization of Thailand's servic es sector is still an ongoing agenda.  Significant 
restrictions remain on market entry and foreign eq uity participation in several subsectors, and the 
regulatory framework is burdensom e.  Rationalizing the regulatory regime and increasing competition 
in Thailand's services sector could help to enha nce innovation and productivity, and hence increase 
the competitiveness of the Thai economy as a whole.   WT/TPR/M/255/Add.1 
 Page 127  
 
 
 
 
  Is Thailand considering rationaliz ing this regulatory framework and making it less burdensome, and, 
if so, how?  
Answer 
Thailand is currently developing a national restru cturing plan for the domestic services industries in 
Thailand.  The plan aims to lay the foundation in terms of improving services quality and 
competitiveness in order to meet the challenges of li beralization, particularly in the ASEAN region.  
Thailand’s regulatory regime governing services sector s, which Thailand has committed to liberalize, 
will be subject to amendment.  Legislation governing key sectors, transport, distribution and telecommunications are under review.        
(iii) Telecommunications 
The two State-owned enterprises TOT Public Company Limited (TOT) and CAT Telecom Public 
Company Limited (CAT Telecom) continue to play  a major role in Thailand's telecommunications 
sector.  Historically, TOT held a monopoly over domestic telephony, while CAT had the monopoly 
over international gateway services.  Until the pr omulgation of the Telecommunications Business Act 
(B.E. 2544) in 2001, private sector entry into the telecommunication market was possible only 
through build-transfer-operate (BTO) concessions awar ded by the State-owned companies.  While the 
Act terminated the statutory State monopolies by  allowing for the issuance of telecommunication 
licences, it upheld the validity of the BTO agreemen ts signed in the past.  In some cases, these 
agreements stipulate terms and conditions (such as acces s charges) that are not entirely in line with 
modern regulatory rules, posing a challenge to the sect or regulator to establish a level playing field.  
Phasing out the concession agreements  is another unresolved issue. 
 
How long will these agreements remain in effect? 
 Answer 
The last concession of TOT and CAT will be expire d on 2018, and Thailand w ill not have any further 
extended period for the former concessions (ICT). 
 (b) Regulatory framework 
There is no limit on foreign ownership in Type 1 telecommunication businesses.  As regards Type 2 
and Type 3 businesses, as a result of amendments ma de to the TBA in January 2006, the limits on 
foreign ownership were increased from 25 per cent to less than 50 per cent,  in accordance with the 
Foreign Business Act B.E. 2542 (1999).  
What limitations does this Act place on foreign services and service suppliers? 
 
Answer 
The 2nd version of the Telecommunications Busin ess Act (2006) states that the applicant for Type 
Two and Type Three licenses shall not be a foreigne r under the law on foreign business. (It means that 
the foreign equity participation for Type II and Ty pe III licenses should be less than 50%). In this 
regard, the Commission may prescribe the prohibiti on that the applicant for certain nature or 
categories of telecommunications business who is a ju ristic person, shall not commit any other act 
which has the nature of business takeover by a person who is not of Thai nationality. (ICT). 
 
 
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Page 128 
 
 
 
 
  (iv) Transport 
The overall quality of Thailand's transport infrastruct ure has been upgraded during the review period, 
but there is still room for improving logistics effi ciency.  According to the World Bank's Logistic 
Performance Index (LPI), which is a comprehens ive measure of a country's trade logistic 
performance, in 2010 Thailand ranked 35th (out of 155 countries), behind Singapore (2nd) and 
Malaysia (29st), but ahead of all other ASEAN countries.  In terms of the quality of transport 
infrastructure (ports, railways, and roads)  and logistic services, Thailand ranked 36th and 39th, 
respectively.  Although the Government's policy is  to encourage private sector participation in 
infrastructure development, the regulatory fra mework for the provision and management of 
infrastructure services is complex and significant restrictions on foreign investment remain in all transport subsectors.  Which of these restrictions are the most significant? Answer 
The restriction of foreign equity ownership of 49% could be considered as the most significant 
barriers for transportation and logistics servic es. Since the inland transportation both land and 
sabotage are related to national security, hence, it would be rather difficult to remove the current 
restrictions imposed.    
 (b) Maritime transport and ports 
Thailand is not a party to the United Nations Liner Code of Conduct.  The cargo-sharing clauses in the 
maritime transport agreements between Thailand and the People's Republic of China and between 
Thailand and Viet Nam were abolishe d in 1995 and 1999, respectively. 
 
Why is Thailand not a party to this Code? 
 
Answer 
The United Nations Liner Code of Conduct contains pr ovisions on liner shipping conference practices with 
a view to, among others, ensuring a balance of inter ests between suppliers and users of liner shipping 
services with no discrimination against ship-owners, sh ippers or foreign trade of any country. However, 
Thailand is not a party to the Code of  Conduct due to the following reasons: 
1. The Thai commercial fleet is rather small. Very fe w Thai shipping companies have been engaged in liner 
shipping services. 
2. Some provisions such as cargo allocation/sharing ag reement and freight rates are not practicable in the 
commercial point of view. For example, the cargo allocati on/sharing is also affected by other uncontrollable 
factors such as choices of shippers while the determ ination of freight rates depends on business competition 
and company strategy to a great extent.    3. At present, other forms of business undertakings in shipping liner services have been widely accepted 
which, as a result, have significantly re duced the role of liner conferences.  
In this regard, Thailand has a view that being a pa rty to the UN Liner Code of Conduct will have less 
advantage to the Thai shipping industry.  
(v) Tourism 
Under the Hotel Act B.E. 2547, the operation of  a hotel business requires a licence and business 
registration issued by the district office responsible for the area where the hotel is located.  Foreigners 
wishing to establish a hotel business in Thailand mu st abide by the Foreign Business Act B.E. 2542 
(1999).  The limit on foreign equity participation in hotels is set at 49 per cent.  However, majority  WT/TPR/M/255/Add.1 
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  foreign ownership is possible, upon approval under the Foreign Business Act.  So far, many 
international hotel chains have set up operations in Thailand. 
 
What are the criteria for authorizing majority foreign ownership? 
 Answer 
Section 5 of the Foreign Business Act B.E. 2542 (1999) deals with the criteria for granting 
permission. In permitting the foreigners to opera te the businesses under the Act, the  advantages and 
disadvantages to the nation’s safety and security, ec onomic and social devel opment, public order or 
good moral, art, culture and tradition of the count ry, natural resource conservation, energy and 
environment, consumer protection, size of enterp rises, employment, technology transfer, and research 
and development shall be taken into account.  
Having set up operations in Thailand, internationa l hotel chains rendering hotel management service 
are not required to obtain permission under the Fore ign Business Act since hotel management service 
is not in the restricted list of the Foreign Business Act.   
CANADA 
Report by the Secretariat (WT/TPR/S/255) 
Part III. Trade Policies and Practices by Measure: (2) Measures directly affecting imports; (vi) 
Technical measures; (a) Technical barrier s to trade: paragraph 57, page 63:  
 The Secretariat Report indicates that products subject to compulsory standards are required to comply 
with the standard and show the mandatory certification mark.   
Does Thailand recognize foreign certification bodies to authorize the affixing of the mandatory 
certification mark on the products?  
 
Answer 
Standards marks and product marking are regulated by law, i.e. the Industrial Product Standards Act 
B.E. 2511(1968) which does not provide for forei gn bodies authorizing the affixing of the mandatory 
certification mark on the products. 
 
Could Thailand please provide a list of forei gn certification bodies recognized by Thailand?  
 
Answer 
None. 
 Could Thailand please indicate what are the re quirements and criteria for the recognition of foreign 
certification bodies?   
 Answer 
None.  
Are the requirements and criteria for recognition of foreign certification bodies the same as those that 
apply to domestic bodies?   Answer 
None.  
 WT/TPR/M/255/Add.1 
Page 130 
 
 
 
 
  Part III. Trade Policies and Practices by Measure: (2) Measures directly affecting imports; (vi) 
Technical measures; (a) Technical barrier s to trade: paragraph 59, page 64:  
 
The Secretariat Report indicates that producers a nd importers of products subject to mandatory 
standards require a licence to indicate compliance wi th the standard and sell the product in Thailand. 
 Could Thailand please confirm whether the pro cess and applicable fees for foreign manufacturers are 
the same as those applicable to domestic manufactu rers? If not, could Thailand please explain the 
differences?   
 Answer 
The process and fee in general are the same for domestic and import produc ts, equal treatment under 
WTO TBT. 
 
Part IV. Trade Policies by Sector: (1) Agriculture;  (iii) Agriculture policies; (a) Market access: 
paragraph 16, page 105:  
The Secretariat Report notes that the allocation of tari ff quotas to importers tends to be quite complex.  
 
Could Thailand please elaborate on an eventual pl an to reduce the complexity of its TRQ 
administration system?  Answer 
Each product subject to TRQ is administered  under different committees of which committee 
members are appointed from different agencies.  All notifications with regard to TRQ are published 
with transparency, and the public may request  for information from relevant agencies. 
 
Part IV. Trade Policies by Sector: (1) Agriculture;  (iii) Agriculture policies; (a) Market access: 
paragraph 17, page 105:  
 
The Secretariat Report notes that Thailand administers some quotas in a manner that could limit 
market access, for example, limiting the import pe riod or limiting the entities that can access quota.  
 
Could Thailand please elaborate on the reasons for these limits placed on access to quota?  
 Answer 
The administration of TRQ is determined the policy of the Ministry of Agriculture and Cooperatives, 
taking into account, among others, production and domestic demand.  Could Thailand please describe the eligibility criteri a of those entities eligible for quota allocation?  
 Answer 
Such entities must be juridical pers ons to ensure accountability.   
  WT/TPR/M/255/Add.1 
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  Report by the Secretariat (WT/TPR/S/191) 
 Part III. Trade Policies and Practices by Measu re: (4) Measures Affecting Production and 
Trade; (vi) Intellectual property rights: paragraph 135, page 90: 
 
Canada notes that in 2007, Thailand was in the st age of developing an on-line patent registration 
system in which an applicant would be able to file a patent application and submit other relating 
documents though the internet.   
Could Thailand please indicate whether this patent register is now available online? 
 
Answer 
The Department of Intellectual Property launched an on-line patent registration system in the 
beginning of 2011.  However, the applicant is requi red to subsequently subm it related documents to 
the Patent Office.  
EUROPEAN UNION 
 
Follow-up to question 12 (WTO Secretaria t’s report, page 18, paragraph 5):  
In its reply, Thailand indicated that no amendment of legal laws and regulations has been made 
beyond the FBA to prevent foreign investors us ing preferential voting rights controlling a Thai 
company? However, foreign participation in the lif e and non-life insurance sector remains restricted 
and has been further limited with the enactment of  the Insurance Act Amendments of 2008, which 
requires existing foreign majority-controlled life an d non-life insurance companies to amend their 
voting share structures to become ma jority Thai controlled by 2013.  
 
Could Thailand elaborate further on this? 
 
Answer Please see the attachment on insurance  
 Follow-up to question 14 (WTO Secretaria t’s report, page 18, paragraph 5):  
Thailand's Schedule of Commitments states clearly that the Treaty of Amity Exemption (MFN 
exemption) is valid for 10 years (until 1 January 200 5). Thailand in its reply refers to its statement 
given in the WTO Council on Trade in Services in November 2010, which only refers to a " process of 
negotiations had been prolonged ".  
 
a) Could Thailand please clarify whether the "renew ed negotiations" referred to means that it intends 
to enter into negotiations with the US on exte nding this MFN exemption which expired on 1 January 
2005?  
 b) When does Thailand intend to notify its intention to bring the inconsistent measure in conformity 
with paragraph 1 of the Article II of GATS?       
Answer Thailand participated in the third review of the MFN exemptions in November 2010 and March 2011 
under the purview of the Council on Trade in Servi ces, and has provided our response concerning the 
treaty between Thailand and the US.  It appears that  the recent political changes in Thailand have led 
to a legal requirement to impose necessary procedures prior to eventual legislative approvals that 
would finally lead to the commencement of international trade negotiations, as well as the 
implementation of the final results of negotiations.  These procedures require, inter alia , the conduct WT/TPR/M/255/Add.1 
Page 132 
 
 
 
 
  of a feasibility study of proposed free trade agreements, public hearings, and parliamentary reviews.  
Pending the uncertainty on a constitutional setting, these steps in the procedures necessitate a new 
enactment of legal instruments  and must be in accordance with the constitutional requirements. 
 
Follow-up to question 15 (WTO Secretaria t’s report, page 18, paragraph 5):  
Thailand indicated that Thai companies can only co mpete in certain labour-intensive service sectors 
and there is no correlation between the competitiv eness between the Thai service providers and the 
US ones which are technology and capital-intensive.  Therefore, US investments under the Treaty are 
allowed in all services sector with the exemptions of the six areas mentioned.   
We would appreciate if Thailand would elaborat e how non-US and US service providers differ in 
terms of technology and capital-intensiveness in su ch a way that, under the FBA, privileges can only 
be granted to US companies?  
Answer 
Under the Treaty of Amity, U.S. investors can engage in all businesses under the List of the Foreign 
Business Act, except reserved by the treaty. Th e investors operating the business under a treaty to 
which Thailand is a party shall be exempted from th e application of some provisions of the Foreign 
Business Act and shall comply with the provisions of  the treaty. Therefore, the competitiveness of the 
Thai company in the areas of technology or capital sh all not be taken into consideration when issuing 
the Certificate to the U.S. investors.  Follow-up to question 21 (WTO Secretaria t’s report, page 34, paragraph 39):  
The EU noted that Thailand has been undertaki ng steps in liberalizing trade in services under ASEAN 
Framework Agreement on Services: AFAS and the AEC Blueprint; and that various agencies have 
taken parts in keeping up with the liberalization target for the goal of AEC 2015. 
Could Thailand comment/elaborate on the extent to which actual commitment of ASEAN member 
countries' schedules under the AFAS and the objectives towards the AEC 2015 would be 
strengthened, or otherwise, by the "flexibilities" and the "ASEAN Minus X" formula as stipulated in 
the AEC Blueprint? 
Answer 
Thailand has undertaken steps in liberalizing tr ade in services under ASEAN Framework Agreement 
on Services (AFAS) and the AEC Blueprint. All of the 12 service sectors as categorized under 
Services Sectoral Classification List (MNT.GNS/W /120) of the WTO, namely Business service; 
Communication service; Construction and related Engineering services; Distribution services; Education services; Environmental services; Health related and Social services; Tourism and Travel 
related services; Recreational, Cultural and Sporti ng services; and Transport services are intended to 
be liberalized under the AEC Blueprint.   
We are gradually improving our schedule of commitm ents under AFAS in accordance with the target 
set out in the AEC Blueprint with wider sectoral c overage and deeper level of commitment aiming at 
achieving the goal of AEC 2015 as planned.  Follow-up to question 38 (WTO Secretar iat’s report, pages 60-61 paragraph 47) 
 
Thailand only provides a partial reply to question 38 : could Thailand provide specific information for 
the period since 1987 on the quantity of imports for which import licences have been requested and 
for which import licences were actually granted? Plea se provide statistics for the period since 1987 to 
the year to date by value and volume for industria l nitrocellulose by supplying country, if available.  WT/TPR/M/255/Add.1 
 Page 133  
 
 
 
 
  Answer 
Nitrocellulose is categorized as chemical substanc e which can be used in making an arm used in 
combat or warfare, according to Section 15 of the Arms Control Act B.E. 2530 (1987), an importation 
of nitrocellulose needs to have an import licen se from the Permanent Secretary of Ministry of 
Defense.   
Follow-up to question 40 (WTO Secretaria t’s report, page 61, paragraph 48):  
Thailand replied that at present, only the impor tation of marble (HS. 2515 except HS. 2515.12.10), 
marble, travertine, alabaster (HS. 6802.21.00), Granite (HS. 6802.23.00) and other building stones 
(HS. 6802.29.00) is required to apply for a non- automatic import license from the Department of 
Foreign Trade in order to administer the import and the use of marble and building stone.  Thailand lifted the import-licensing requirements on  imports of block marble merely cut but not 
polished, which is still subject to import restric tion. Does Thailand have any plan to phase out this 
non-automatic import license?  Answer 
Thailand has no further plan to phase out non-automa tic import license for marble and building stone 
since the Ministry of Commerce i ssued the Notification of the Ministry of Commerce on the import of 
Stone, dated 16 June B.E. 2551 to e limination of the import restriction of marble, worked monumental 
or building stone in 2008.  
 
Questions 49 – 50 have not been replied:  
 
WTO Secretariat's report, page 65, paragraph 63 
 The Secretariat’s report states "/…/ According to th e authorities, Thailand generally follows standards 
set by the OIE, Codex Alimentarius, and IPPC (where  they exist). However, it has also been reported 
that animal health standards are sometim es stricter than those established by OIE." 
 
Could Thailand explain its system in place fo r justifying stricter import standards (animal 
health/plant health and food safety related) t han those established by the international standard 
organisations (CODEX Alimentarius, OIE and IPPC)? 
 
Does Thailand possess a risk assessment based on scie nce for each Thai standard which is stricter 
than the international standard set by the interna tional standard setting body referred to in the WTO 
SPS Agreement? Could Thailand inform whether such  a risk assessment is made publicly available, 
and if not, could Thailand explain how such risk a ssessment could be obtained by a WTO Member 
Country and provide an indication on the timeframe it takes for receiving?  
 
Answer 
Since Thai standard which is stricter than Intern ational Standards i.e. Codex Standard, is based on 
Risk Assessment based on science. The informati on could be obtained through WTO Contact Point 
such as Codex Contact Point of Thailand about the explanation for risk assessment results or other 
request. The timeframe for receiving this informa tion depend on Regulation Es tablishment Process of 
Thailand such as sending the exposure assessment information or must be reviewed by Food-
subcommittee or Food Committee before answer the request of WTO to WTO Contact Point member 
country. 
 
Questions 51 – 52 have not been replied:  
 WT/TPR/M/255/Add.1 
Page 134 
 
 
 
 
  WTO Secretariat’s report, page 66, paragraph 68 
 
The Secretariat’s report mentions that "All impor ters and manufacturers of food products must obtain 
a licence from the Food Control Division of the FD". Food and Drug Administration ("FDA") has provided a process and estimated timeline for appl ying the import license in its website. However, 
according to the importers, they are required to pr ovide FDA with confidential information such as 
ingredients and recipe, production process (includi ng machine layout) and product specification as 
well as a certificate of free sale (CFS) issued/ ce rtified by authorities in the country of production or 
distribution.  What can import license applicants do in the case  that they import a product from certain EU 
Member States that do not have a normal practice in issuing CFS to reassure the Thai authorities that 
the product is authorized for sale in their country? 
 Answer 
Thai FDA would like to clarify that the requireme nt for CFS for import food product is need only for 
dietary supplement product that contain novel ingred ient which does not have a history of use in 
Thailand. In this case a CFS issued or certified by authorities in the country of production or 
distribution. To ensure that this product is f it for human consumption and can be sale in the 
production or distribution country.  
 
Given that information on product recipe and produ ction process are sometimes regarded as trade 
secrets of the producers, is it possible for the EU to enter into a bilateral consultation with the Thai 
authority to justify that food products sold in the EU market have met the stringent EU food safety 
requirements and that they should be acceptable to be sold in the Thai market?  Answer 
According to the safety concern and regulatory requi rement for some products which is trade secret 
information of the producer shall be given, in th is case it shall be submitted directly to FDA offices 
and will be kept as confidential information. 
 
Follow-up to question 53 (WTO Secretaria t’s report, page 66, paragraph 71):  
The referred Notifications only expla in information to be put on the label and how to affix it. 
However, it is still not clear when to affix it; be fore distribution in the ma rket or before importation 
into Thailand? 
 
Answer 
Thai label must be affixed under Food Act B.E.  2522 (1979) before importation in the country. 
 
Follow-up to question 76 (WTO Secretaria t’s report, page 86, paragraph 138):  
In its reply, Thailand indicated that according to  rules and regulations on Thai public procurement, 
there are no discriminatory measures against fore ign suppliers/goods in Thai procurement except 
giving advantage to several Thai public enterprises.  However, public enterprise's privileges have been 
removed over time. 
 
Can Thailand provide more information about the pr ecise measures and timing of their removal?    
 Answer 
Thailand has already had cabinet resolution si nce 31 May 2005 to remove public enterprise’s 
privileges. For removing public enterprise’s privileg es, the cabinet has to appoint the committee in 
charge of considering public enterprise’s privile ges removal. This committee will consider that  WT/TPR/M/255/Add.1 
 Page 135  
 
 
 
 
  whether each privilege conflicts with section 84(1) of Thailand’s constitution or not. If the privilege 
oppose to the constitution, the committee will ask the cabinet to revoke that privilege. However, the 
public enterprises that receive the privileges will be the entity that related to national security, public 
interests and so on. Although the agency is entitled by law to get privilege, that privilege will be 
revise or amend frequently. 
 
Question 78 has not been replied:  
 
WTO Secretariat’s report, page 89, paragraph 150  
The Secretariat’s report notes that the Department of Intellectual Property (DIP) under the Ministry of 
Commerce is responsible for implementing laws  and initiating reforms on intellectual property 
protection rights. This includes promoting the pr otection, creation, management, and commercial 
exploitation of intellectual property (including th e protection of foreign intellectual property), 
registering intellectual property un der international agreements, arbitrating disputes, and suppressing 
infringements in cooperation with other agencies.  
 
Concerning the suppression of intellectual prop erty violations, please provide more detailed 
information on the role sharing and cooperati on between the DIP and other enforcement agencies. 
How does Thailand assess the impact of this cooperation?  Could Tha iland clarify which is the lead 
agency that IPR right-holders should refer to when facing an issue of IPR enforcement?  Answer 
The DIP cooperates with other enforcement agen cies through a network of various interagency 
committees/working groups as well as the implem entation of MOU among concerned agencies both 
public and private.  Details can be found in  paragraph 97 of the Secretariat Report. 
 It is quite difficult to assess the impact of the cooperation.  Nonetheless, Thailand receives 
positive feedback for continued efforts in in teragency cooperation a nd IPR enforcement. 
 There are various agencies the right holders shoul d turn to when right violation occurs.  For 
criminal prosecution, the right holders shoul d refer to the Royal Thai Police or the 
Department of Special Investigation.  For the border enforcement, the right holder is 
requested to contact the Customs Department.  DIP can also plays a coordinating role. 
 
Question 84 has not been replied:  
 WTO Secretariat’s report, page 98, paragraph 179  
According to the Secretariat’s report, "/…/In or der to strengthen border en forcement, the Customs 
Department has proposed amending the Customs Ac t B.E. 2469 (1926), last amended in 2005, to 
empower customs officers to inspect goods in transit, and transhipment s, and to broaden the scope of 
border enforcement to cover all intellectual property rights." 
 
Could Thailand provide information on the current st atus of the amendment law which authorised the 
customs authorities to act ex officio to inspect bot h goods in transit, and transhipments import and 
broaden the scope of border enforcement to cover all intellectual property rights? If possible, please 
specify a timeframe to pass the law? 
 
Answer 
The proposed amended law is now under the consideration of the Council of State. 
 
 WT/TPR/M/255/Add.1 
Page 136 
 
 
 
 
  WTO Secretariat’s report, page 116, paragraph 62 
 The Secretariat’s report notes that for life and non-lif e insurance services, foreign equity participation 
is capped at 25%.  
 
Could Thailand please confirm if this statement is still correct? It is our understanding that the 
amended Life Insurance Act (No. 2) B.E. 2551 (200 8) and the amended Non-Life Insurance Act (No. 
2) B.E. 2551 (2008) the Office of Insurance Commission the discretion to allow up to 49% of the shares (as well as its voting rights) to be held  by foreigners as well as the power to relax the 
requirement regarding the nationality of the directors provided always that not more than half of the total number of directors on the board of directors can be foreigners. 
 
Answer 
Yes. Please see the attachment on insurance. 
 (b) Insurance  
Legal framework 
 
WTO Secretariat’s report, page 122, paragraphs 91-92 
 
The Secretariat’s report states that "Amendments to the Life Insurance Act (1992) and Non-Life 
Insurance Act (1992) entered into force in February  2008. The main changes included a relaxation of 
the limit of foreign ownership." and "/…/The rela xation of the limits on foreign participation is 
considered as part of the second stage of the on-going liberalization./…/."  
 
Beyond what has been mentioned in the TPR report, can Thailand confirm that  the amended Life and 
Non-Life Insurance Act of 2008 intr oduced a new legal framework on the issue of voting share sold or 
voting rights of foreign shareholding in an insurance company? 
 Answer 
Yes, the sections of the Life/Non-Life Insuran ce Acts regarding foreign shareholder are mainly 
consistent with the Financial Institution Act B.E. 2551 (2008) 
 Can Thailand elaborate on the interpretation of the introduced voting shares sold concept, 
particularly whether or not this entails that an insurance company must have Thai nationals holding at least 75% of the total shares sold and at least 75% of the voting rights in the company? If so, how 
can this be reconciled with Thailand's commitmen ts in Schedule of Specific Commitments, which on 
life and non-life insurance sub-sections refer to 'none' on mode 3 limitations to national treatment?  
 
Answer 
(1) Section 8 of the Non-Life Insurance Act B.E.  2535 (1992) (section 9 for Life Insurance) provides 
that shares of insurance company must be co mmon shares. Hence each share has one vote. 
Amendments to the Life Insurance Act B.E. 2535 (1992) and the Non-Life Insurance Act B.E. 2535 
(1992) entered into force in February 2008 and section 8 is amended as follows; 
"The Company’s ordinary shares and preference shares shall be in the form of a named certificate, and shall have a registered par value of not more  than one hundred baht (Baht 100) per share. 
The issuance of preference shares under the foregoing  paragraph shall be in accordance with the Law 
on Public Limited Companies. The Registrar may pr escribe the rules, procedures, and conditions for 
protecting the interests of the insured, provided that  those rules, procedures, and conditions are not in 
conflict with the Law on Public Limited Companies."   WT/TPR/M/255/Add.1 
 Page 137  
 
 
 
 
  This amended section is intended to accommodate the fact that insurance company will transform to 
public company limited and as a public company limited, it should be able to issue preference share. 
Nevertheless, the issuing of preference share is subject to Registrar Notification stating that 
preference share must be one share one vote. Hence, the voting rights of sharehol ders remain the same as 
prior to the amendments to the Li fe Insurance Act B.E. 2535 (1992)  and the Non-Life Insurance Act 
B.E. 2535 (1992) entering into force in February 2008. 
(2) All companies licensed in Thailand are treated equally. 
 
Can Thailand confirm that, under the current amendmen ts to Life and Non-life Insurance Act, existing 
companies not qualifying as Thai by February 2013 will not be allowed to open up new branches and 
be subject to a fine up to THB 200,000, and a further fine up to THB 10,000 for every day the contravention continues? 
 
Answer 
Yes, according to Section 84 of the Non-Life In surance Act B.E. 2535 (1992) (section 89 for Life 
Insurance).  Can Thailand confirm if insurance companies establishe d before the effective date of 1992 insurance 
law, who have enjoyed previous grandfathering (all owing foreign shareholdings in excess of 25 per 
cent), will also have to comply with the 2008 amendments on 'voting shares sold' by 2013?  
 Answer 
Yes, according to Section 57 of the Non-Life In surance Act (No.2) B.E. 2551 (2008) (section 55 for 
Life Insurance). 
 
Is Thailand considering amending the Life and Non-Life Insurance Act before its retroactive 
application on February 2013 subjecting foreign national s controlling a Thai company to a daily fine 
or loss of control of the company?  
 
Answer 
Yes, the draft of the amended act is currently un der the consideration of the Council of the State, 
details as attached. 
 
WTO Secretariat’s report, page 123, paragraph 92 
 
The Secretariat’s report states that  "/…/In practise, as of end of 2010, three Thai insurance companies 
had been granted an exception to the limits on foreign ownership; in two, the foreign equity limit was 
allowed to be increased to 49%, while  the third company was authorised  to have up to 99.9% foreign 
ownership/…/". 
 
Can Thailand disclose the nationality of the forei gn company exempted based on capital solvency 
requirements and need to strengthen its financial position amidst the recent global financial crises?  
 Answer 
Yes. Public has access to the list of  insurance companies’ shareholders. 
 The EU notes that foreign participation in the life and non-life insurance sector remains restricted and 
has been further limited with th e enactment of the Insurance Act of 2008, which requires existing 
foreign majority controlled life and non-life in surance companies to amend their voting share 
structures to become majority Thai controlled by 2013.Recognizing the importance of foreign 
investment, the EU encourages Thailand to review the 2008 Insurance Act of Thailand because it will WT/TPR/M/255/Add.1 
Page 138 
 
 
 
 
  restrict operations of existing foreign insurers by making foreign voting control illegal and subject to a 
daily fine from February 2013 onwards. This w ould increase Thailand's attractiveness for foreign 
investment and enhance economic development.   
 
To what extent did Thailand consult with stake holders in the development of its law reform in 
insurance sector, in particular with those com panies whose operations the government has noted may 
need to be "restructured" as a result of the law? 
 Answer 
The drafted law is to revise insurance company’s sh areholding and directors’ structure in order to 
increase strengthening of insurance business and to dictate the debt payment fund to pay any debt occurred by an insurance company in which its life insurance license been revoked, which is benefited 
to private sectors. 
 
JAPAN (additional 1) 
 
The Secretariat Report (WT/TPR/S/255) 
 
III. TRADE POLICY AND PRACTICES BY MEASURE (4) OTHER MEASURES AFFECTING INVESTIMENT AND TRADE (vi) Intellectual property rights  Question 10: Page 98, paragraph 179 
 
According to the Secretariat’ s Report, if Customs officials suspect that pirated or counterfeit goods are being smuggled, they may invite rights owners to inspect the goods, with joint inspections taking 
place regularly at Klong Toey Port. Japan would like to know whether the joint inspection is to be 
conducted on Customs’ own initiative or only based on the request by the rights’ owners. If the latter 
is the case, is it correct to understand that Cust oms officials are not authorized to make a final 
decision on infringement of the suspected goods und er joint inspection? If that is not the case, Japan 
would like to know how much the rights’ own ers are empowered to influence a decision on such 
goods. 
 
Answer 
The examination of infringement goods have to  comply with the Customs Act and Customs 
Regulations including the consideration of the request by the rights’ owners. 
The final decision of the Customs officials on infringement of the suspected goods is comply with the Customs Regulations as follows: 1. In the case of Trademark infringement: 
In accordance with Trademark Act B.E. 2534 the infringement of Trademark is a Criminal offence.  
1.1  If the Customs officials detected that the suspected goods are counterfeit of trademark, the 
Customs officials have the authority to make a decision for litigation. 
1.2  If the rights’ owners sent the request on in fringement of the suspected goods to the Customs 
officials, the Customs officials will consider and if there were enough reas ons to believe in the 
request, the Customs officials will make a decision for litigation. 
1.3 If there weren’t enough reasons for the Custom s officials to believe in the request by the 
rights’ owners, the Customs officials will send the example of the suspected goods together with the 
rights’ owners request and the document of the Cust oms officials’ primary decision to the Department 
of Intellectual Property for a final decision.   2. In the case of Copyright infringement 
In accordance with Copyright Act B.E. 2537 is a personal case.   WT/TPR/M/255/Add.1 
 Page 139  
 
 
 
 
  2.1 The injured person must send the request on infringement of the suspected goods to the Customs 
officials. The Customs officials will consider and if there were enough reasons to believe in the 
request, the Customs officials will make a decision for litigation. 2.2 If there weren’t enough reasons for the Custom s officials to believe in the request by the 
rights’ owners, the Customs officials will send the example of the suspected goods together with the 
right’s owners request and the document of the Customs officials’ primary decision to the Department 
of Intellectual Property for a final decision. 
For the consideration of the request by the rights’  owners, the rights’ owners do not have empowered 
to influence a decision of the Customs officials b ecause the Customs officials have to make a decision 
based on the Customs Act and Customs Regulations. 
 
UNITED STATES 
 WT/TPR/S/255  Page 73, paragraph 91  explains that the Customs Free Zon es program allows qualifying companies 
to benefit from export tax refund and exemption sche mes. To the extent the export tax refund and 
exemptions are contingent upon exportation of a good from a Free Zone, please explain how this 
program is in line with Thailand’s statement that it no longer provides export subsidies (See 
WT/TPR/G/255, page 15, paragraph 61). 
 
Answer 
The establishment of free Zones is part of an ec onomic policy that creates the employment and the 
development of associated trade activities. The ta x incentives following this program have to be 
complied with the standard principle as allowed under the Kyoto Convention of WTO. 
 
Page 3 of "Thailand Replies I"  
Page vii, paragraphs 5-7; 21:  The Secretariat’ s report notes that the decline in foreign direct 
investment is a serious macroeconomic concern fo r Thailand, and that restrictions on foreign 
ownership in the services sector cont ribute to this decline.  The repor t further notes that while still a 
large portion of the Thai economy, services’ cont ribution to GDP has dropped 2% over the review 
period.  In addition, while the report notes that lib eralization in the sector is ongoing, restrictions on 
market access and equity participation remain,  and any changes appear to be taken on a 
discretionary, case-by-case basis.  In light of the im portance of trade in services to the Thai economy, 
and Thailand’s ongoing services policy reform, what sp ecific steps does Thailand intend to undertake 
to liberalize further this sector? 
 
Answer 
With a view to further liberalization of service sectors, Thailand undertake a review of the Foreign 
Business Act B.E. 2542 (1999) annually aiming at rais ing level of foreign equity participation in 
various service sectors.  
U.S. Follow up Question:  Please provide details  of the services-related legislation currently under 
review including provisions that liberalize trade and investment in services, and provisions that 
restrict services trade and investment.  Answer 
The amendment of services-related legislation is  still underway due to the dissolution of the 
Parliament and changed of governments during th e past few years. Therefore, Thailand cannot 
provide detail of the proposed amendments at this juncture.  WT/TPR/M/255/Add.1 
Page 140 
 
 
 
 
  Pages 24 and 25 of "Thailand Replies I" 
 
(EU) In addition, could Thailand provide more deta iled information about the proposed Customs law 
reform on reward scheme, in particular in the a rea of rewards, including its content and expected 
time of adoption?  
Answer The details of proposed Customs Act reform on reward scheme are as follows: 
Bonus Payment = 30% of the value of the exhibits or the fine Rewards = 15% of the value of the exhibits or the fine - Thai Customs Department expects to adopt  the new reward scheme as soon as completing a 
legislative process.  
- Apart from the Thai Customs Department, Thailand’s  legislative function is also involving in other 
draft Acts from various government agencies, ther efore, the timeline for the adoption of the new 
Customs Act is beyond our control. 
 
U.S. Follow up question:  Can Thailand please cl arify what the difference is between the "bonus 
payments" of 30% and the "rewards" of 15% as included in the new reward scheme? 
- Who is eligible to receive the bonus payments,  and under what circumstances are such bonus 
payments provided?   - Who is eligible to receive rewards payments,  and under what circumstances are such reward 
payments provided?  
Answer "Brides" are provided to informer for the arrest.    
"Rewards" are provided to customs official. In the case where there is no informer for the arrest, 20 percent of the fine sh all be deducted and paid 
as rewards. 
In all circumstances, brides and rewards shall be provided by deducting from sale proceeds only 
when the exhibits are sold. Howeve r, in the case where the exhibits have not been forfeited or cannot 
be sold, the amount of such payment sh all be partially deducted for the fine. 
 
Page 26 of "Thailand Replies I" 
 
Page 48, paragraph 15:  (US) The Secretariat says  that Thailand "has expressed its intention to 
accede to the Revised Kyoto Convention."  What amendments to the Customs Law is the Thai 
Government considering to comply with the R evised Kyoto Convention?  The Secretariat Report 
indicates that amendments had been under considera tion in Parliament prior to being disrupted by 
political events.  We understand that these amendm ents have not been referred to the current 
Parliament, but have been returned to the Minist ry of Finance to restart the process.  Is our 
understanding correct?  What are the next steps in the process and when does the Ministry of Finance 
expect to produce a new draft?  Is the Thai Govern ment considering amendments to the Customs Law 
that: (1) are similar to the customs legislation s ubmitted to the Thai Parliament in 2010 and/or (2) 
address the rewards system and/or (3) provide the Cu stoms Department with ex officio authority to 
interdict in-transit shipments?     
 Answer 
To comply with the RKC, Thai Customs is c onsidering the amendment on the following issues: 
 1) De Minimis  2) Advanced – Binding Ruling 
 3) Electronic Commerce  WT/TPR/M/255/Add.1 
 Page 141  
 
 
 
 
   4) Risk Management (General Annex) 
 5) Outward Processing (Specific Annex) 
- As the draft amendment had been disrupted by past  political events, they ha d been returned to the 
Ministry of Finance for restarting the process.  - Thai Customs Department is preparing to resubmit the customs legislation, similar to the legislation 
which was submitted to the Thai Parliament in 2010, to the Ministry of Finance once again.  
 U.S. Follow up question: Please provide an o verview of the proposed Customs Act reform as it 
pertains to the rewards system, including any c hanges being made specifically to address the problem 
of corruption within Customs.    Answer 
Apart from the domestic laws of Thailand, the propo sed Customs Act reform also adopts international 
standards and best practices to improve our customs operation.   
For example, "Electronic Commerce" has been propo sed in order to facilitate and reduce face to face 
interaction. Therefore, the transparency of custom s operation is improved and can be checked at every 
stage.  
A decrease in "brides" and "rewards" paid to the info rmer of the arrest and customs official is another 
change that being made to confront the probl em of corruption within Customs and reduce the 
motivation for the arrest with the hope for reward  
Page 27 and 28 of "Thailand Replies I" 
 
(d) Customs inspection and valuation procedures 
 
Paragraph 17  
 
(EU) Can Thailand provide assurances that customs valuation practices will continue to conform to 
WTO rules? What steps is Thailand taking to ensure that Thai Customs legislation ensures 
transparency and predictability, specifica lly the Customs reward scheme? 
 Answer 
Yes, Thailand can provide assurances that the customs valuation practices will continue to conform 
with the WTO Agreement because;  
- The Thai Customs Regime and the Customs Valuation process in Thailand complied with 
   WTO Valuation Agreement and Thai Nationa l Law (namely the Customs Act (No.17)    
   B.E. 2543 and Ministerial Regulations No.132 (B.E. 2543). 
- Moreover, we always review the laws and regulations relating to customs procedure and 
   valuation, with a view to update them, if necessary.  
- Furthermore, in order to increase transparency  in Customs valuation procedures, Thailand is 
   currently applying the Price Database b ased on the WCO Valuation Database Guideline. 
   Such Price Database is being used by a Customs Administration only for the purpose of risk    assessment, particularly in assessing potential ri sks regarding the truth or accuracy of the 
   declared value for imported goods. However, the Price Database will not be used to    
   determine the customs values of the imported g oods. The price data is collected and/or     
   verified by statistical method as well as we ll-founded research methodology.  It is worth 
   stressing that the Thai Customs primarily use the transaction value method to determine the    customs values of the imported goods. 
- In addition to setting out obligations to pr omote transparency and consistency as well as 
   facilitating trade for importers and interna tional trade entrepreneurs, the Customs    
   Department has issued policy relevant to th e advance ruling on valuation since 2009. At    WT/TPR/M/255/Add.1 
Page 142 
 
 
 
 
     present, the system has been being developed to become an automatic system in the project 
   called the "Electronic Advance ruling on Valuation". 
           - Finally, we also have established the E- Customs in order to furt her promote transparency and 
 facilitate the procedure for customs valuati ons, consistent with the WTO Agreement, as 
 shown in the following diagram;   
 
 
(Annex 1) 
All these steps are being undertaken to ensure that the Thai Customs Legislation is fully transparent 
and predictable, specifically on the Customs reward scheme.  
 
U.S. follow up question:  
How often are the values in the price database updated?   
 
Answer 
How often the values in the price database update d depends on what kind of goods’ data. For 
example, the data of agriculture goods, which often fluctuates rapidly, is updated four times per year. 
 
How, specifically, is the price data contained in the database collected?  
 Answer 
The price data contained in the database is collect ed and/or verified by statistic method, as well as 
research methodology. 
 
Page 29 of "Thailand Replies I"  
(US) Please provide more information about the appeals process, including whether decisions on 
appeals are provided in writing and whether the officials involved in the appeals process are 
independent of the officials w ho made the original ruling. 
 
Answer 
- How to make an appeal?  WT/TPR/M/255/Add.1 
 Page 143  
 
 
 
 
  If the appellant desires to appeal the customs offi cer’s valuation, he/she can submit a written request 
in the appeal form as determined by the Director General (Form Kor Sor Kor  171) together with all 
supporting details such as the import entry number wh ich the appeal is for;  the Assessment Notice 
(Form Kor Sor Kor  114 or Form Kor Sor Kor  115); the amount of Customs duties; the aspects of 
disagreement, including reason and evidence, etc. 
- To whom does importer or exporter have to submit the appeal? 
According to Article 112 septem  of the Customs Act B.E. 2469, amended by the customs Act(17) 
B.E. 2543, the appeal form must be submitted to the Appeal Committee comprising of  
 The Director-General of Customs, acting as the Chairperson  
 A representative from the Ministry of Finance, acting as a Member  
 A representative from the Council of State, acting as a Member  
 5-7 experts appointed by the Director-General of Customs, acting as Members 
- Deadline to submit an appeal 
The right to submit a request for valuation appeal is given for a period of 30 days from the date of 
receiving an Assessment Notice from the Customs. - Supporting Documents. 
 A copy of the Assessment Notice (Form Kor Sor Kor  114 or Form Kor Sor Kor  115);  
 A copy of the receipt for duty payment or guarantee, as applicable;  
 A copy of Customs entry and invoice;  
 A copy of the identification card of the person f iling the appeal. In the case of the legal entity, 
the attached documents must include a certif ication from the Ministry of Commerce and a 
copy of the identification card of the managing director or director partner with the legal entity’s seal together with the signature of the authorized person signed on  behalf of the legal 
entity. 
 Other relevant documents (if any) i.e. a sale contract, proforma invoice, a price list, a 
catalogue, etc. 
- Decision on appeal Appeal Committee will read, hear and decide the dis pute subject to all relevant laws and regulations. 
Then their valuation ruling is made  and sent in writing to the importers. 
- Disagreement In the case of disagreement with the decision made  by the Appeal Committee on Customs Valuation, 
the appellant has the right to file the appeal to the court within 30 days from the date they are notified 
of the decision.  U.S. follow up question:  Can Thailand please confirm that th ere is no penalty for appealing a 
customs valuation decision?    Answer 
Thailand confirms that there is no penalty imposed  by law or regulation for appealing a customs 
valuation decision. 
 
Page 50 of "Thailand Replies I" 
 
Paragraph 115 
 
(US) The Secretariat notes that the Thai Government took certain actions following the court case involving several major projects in the Map Ta Phut  industrial zone.  Please describe the new 
policies and measures related to he alth and the environment that are now in effect and any measures 
still under consideration, but not yet implemented, including the type of businesses and/or business 
activities subject to these new policies and measures. 
 WT/TPR/M/255/Add.1 
Page 144 
 
 
 
 
  Answer 
Proceeding the environmental concerns in the Map Ta  Phut industrial zone, the Ministry of Natural 
Resources and Environment requires existing projec ts, expansion projects in Map Ta Phut, and 
projects in Map Ta Phut engaging in mining operati ons, industrial estates, oil refinery, natural gas 
separation or processing, cement industry, raw s ugar, white sugar, refi ned sugar production, 
chemical fertilizers production, central waste trea tment plant, commercial airport, mass transit 
system, rail transport system, hotels and resort with  over 80 rooms or 4,000 sqm. area or more, and 
hospitals (with 30 in-patient beds or more if locat ed within 50 meters from river, coastline, lake or 
beach, and with 60 in-patient beds or more if located elsewhere) to conduct H/EIA (Health and 
Environmental Impact Assessment) and demonstrat e environmental impacts if there is any.  
 
U.S. Follow up Question:  Please provide specific information on any relevant new laws, regulations, 
or other new measures now in effect and any me asures still under consideration related to health and 
environment that would apply to existing or  new projects located anywhere in Thailand. 
 
Answer 
The Ministry of Natural Resources and Environment  issues the Notification of the Ministry of Natural Resources and Environment About defining ty pe, size and procedure for Project or Activity 
which May affect community severely in respect of both the quality of Environment, Natural Resources and Health that Government agency, St ate Enterprise Or Private Sector should prepare 
environmental impact assessment report B.E. 2553 (2010) in order to regulate projects or activities that may affect community severely in respect of both the quality of environment, natural resources and health.   
 
Page 28 of "Thailand Replies II" 
 
(US Question) Page 93, paragraph 165:  Thai la w does not provide for data "exclusivity"; the law 
does not prevent the data from being used for the approval of generic versions.  How, then, does 
Thailand meet the requirement of TRIPS 39.3?  
Answer 
TRIPS 39.3 require Member to protect undisclosed test and data submitted in the process of 
marketing approval against unfair commercial use:  
• The Food and Drug Administration under the Ministry of Public Health is a government 
agency not a profit oriented or commercial entity .  Therefore, the use of the submitted data by 
the government authority in marketing approval of  a generic version could not be considered 
as commercial use. 
• Moreover, the Ministry of Public Health Regul ation on the Protection of the Trade Secret of 
Pharmaceutical Data B.E. 2550 (2007) provides that the pharmaceutical test data submitted 
for marketing approval shall be protected.  This fulfils Thailand’ s obligation under TRIPS 
39.3.   
 
U.S. Follow-up Question: Thailand’s reply to the U. S.’s question on TRIPS 39.3 obligation states that 
"The Food and Drug Administration under the Ministry of Public Health is a government agency not 
a profit oriented or commercial entity.  Therefore,  the use of the submitted data by the government 
authority in marketing approval of a generic version  could not be considered as commercial use."  
Please clarify whether the Thai FDA uses undisclo sed test data submitted for market approval of a 
pharmaceutical product by the own er for approval of a generic version of another company.  Please 
confirm whether the undisclosed test data is protect ed under the Trade Secret Act B.E. 2545 (2002).  
If so, please explain this use in light of Section 34 of the Act. 
  WT/TPR/M/255/Add.1 
 Page 145  
 
 
 
 
  Answer 
The undisclosed test data submitted for the purpose of marketing approval of a pharmaceutical is not 
used in marketing approval of a generic version as it is kept secret in accordance with the Ministry of 
Public Health Regulation on the Protection of the Trade Secret of Pharmaceutical Data B.E. 2550 (2007).  (US Question) Page 94, paragraph 168:  It appe ars that Thailand’s Protection of Geographical 
Indications Act B.E. 2546 (2003) ("the GI Act") does not explicitly prohibit the registration of GIs that conflict with earlier trademarks.  Please confirm whether or not this is the case. 
 
Answer 
Thailand sees the protection of geographical indication and trademark as separate systems, therefore, they could co-exist. 
U.S. Follow-up Question:  How does Thailand’s co existence regime limit the negative effects on 
consumers of confusion in the marketplace?  Answer  
 The consumers’ confusion between a trademar k and a geographical indication is limited as 
Section 7(2) of the Trademark Act B.E. 2534 (1991) provides that geographical names are not entitled to be registered as a trademark.   
 If a geographical name had been registered as a trademark before the Trademark Act 
B.E. 2534 (1991) entered into force, its protec tion would continue in accordance with Section 
117 of the Trademark Act B.E. 2534 (1991).  In this case, the geographical indication can also be registered, provided that the registrar may set up a condition to the registration to avoid 
public confusion.  
 
COLOMBIA 
 
Secretariat Report WT/TPR/S/255 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES (2) G
ENERAL CONSTITUTIONAL AND INSTITUTIONAL FRAMEWORK  
 
According to paragraph 6, page 19, of the Secr etariat Report, "International treaties involving 
sovereignty, security or economic or other inter ests - including trade agreements - have to be 
approved by Parliament, with ade quate public consultation.  Due c onsideration or compensation must 
be given to medium and small-scale enterprises a nd others who may suffer as a result.  A March 2011 
amendment requires an organic law to specify the t ypes of these agreements that need parliamentary 
approval, which may allow for more flexible free trade negotiations …"  1. Does public consultation, as described above,  take place after trade agreements have been 
approved and how is it conducted?  2. Is public consultation always necessary under Thai legislation or is it optional?  Answer to questions 1 and 2 
Under Section 190 of the Constitution of the Kingdom  of Thailand B.E. 2550, before the conclusion 
of a treaty with other countries or international organization (providing for a change in the Thai 
territories or the Thai extraterritorial areas over which Thailand has sovereign right or jurisdiction 
under any treaty or international law; requiring the en actment of an Act for its  implementation; having 
extensive impacts on economic or social security of the country; or having significant commitments in WT/TPR/M/255/Add.1 
Page 146 
 
 
 
 
  trade, investment, and on the budget of the country), the Council of Ministers must provide 
information thereon to the public, conduct public cons ultation and declare the details of such treaty to 
the National Assembly.  Upon giving signature to such treaty, the Council of Ministers shall, prior to expressing consent to be bound, grant public access to the details of such treaty.   
 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(2) M
EASURES DIRECTLY AFFECTING IMPORTS  
(vi) Technical measures (b) Sanitary and phytosanitary measures 
 
According to paragraph 61 of the Secretariat Report,  "As Thailand is a major exporter of agricultural 
and fisheries products, SPS issues are of serious con cern.  For example, in 2006 exports of chicken 
were sharply reduced following outbreaks of avian fl u.  Due to measures taken by the Government, 
Thailand has had no further outbreaks of bird flu since 2008".  As far as sanitary and phytosanitary measures are concerned, the following points are noteworthy: 
 
Responsibility for sanitary and phytosanitary measur es in Thailand is divided between a number of 
government agencies, including the National Bureau  of Agricultural Commodity and Food Standards 
(ACFS), which is responsible fo r setting standards for agricultural systems, commodity and food 
items and food safety;  the Department of Livestoc k Development and the Department of Fisheries in 
the Ministry of Agriculture and Cooperatives are res ponsible for animal health and imports of some 
animal products;  plant health is the responsibility of the Department of Agriculture in the Ministry of 
Agriculture and Cooperatives;  and food safet y is the responsibility of the Food and Drug 
Administration (FDA) of the Ministry of Public Health.  Thailand is an active participant in the WTO SPS Committee, a member of the World Organisation 
for Animal Health (OIE), a party to the Intern ational Plant Protection Convention (IPPC), and a 
member of the Codex Alimentarius on food safety.  The authority responsible for notifications to the 
WTO is the National Bureau of Agricultural Co mmodity and Food Standards (ACFS).  Thailand 
generally follows the standards set by the OIE, Codex Alimentarius, and IPPC. 
 
New SPS regulations are based on an analysis of th e risk assessment, risk management, and risk 
communication.  According to Thailand, there ha ve been no recent changes to its legislative 
framework in this respect.  In view of the foregoing, Colombia has no SPS-rela ted questions for Thailand concerning this trade 
policy review. 
 
(i) Customs procedures 
(a) Recent developments 
 
According to paragraph 13 of the Secretariat Report, "Improving customs procedures and trade 
facilitation in general are important objectives of th e Thai Government and a major concern for the 
private sector.  The main official policy objectives are transparency, simplicity, honesty, using an 
updated version of the Harmonized System of tari ff classification, and quick and secure electronic 
processing".   WT/TPR/M/255/Add.1 
 Page 147  
 
 
 
 
  3. One of the main official policy objectives is  transparency.  Does Thailand have electronic 
information services to handle questions and requ ests from customs users and, if so, is the 
information service provided free of charge or is a there a fee attached to the service? 
 Answer 
The customs Department has electronic information services such as importing and exporting, procedure customs on the internet, direct mail by circulating information via e-mail and letters to 
customs-related stakeholders all of these provided free of charge. 
 
4. Do the Customs Department and other bord er agencies afford customs users the opportunity 
to comment on the introduction or amendment of draft laws and regulations?  
Answer According to Part 10 (Right to Information and Complaints) of the Constitution of the Kingdom of 
Thailand B.E. 2550 (2007), State agencies, State enterprise or local government organization shall 
afford the right to public to express their opi nion to agencies concerne d for consideration. 
When enacting or amending laws a nd regulations, Thai Customs Department, therefore, have always 
been conducting public hearings to educate cust oms users on such laws and regulations as well as 
obtain their comments and concerns on sensitive or controversial issues for further consideration. 
According to paragraph 14 of the Secretariat Report, "Electronic services on the Customs Department's 'customs clinic' website cover advan ced ruling on customs tariff classification forms, 
advanced ruling on customs valuation forms and advanced ruling on rules of origin". 
 5. Would Thailand please explain how this electronic system operates? 
 Answer 
See Attachment 1. 
 
6. What are the time-limit and the procedure for issuing such rulings? 
 Answer 
1) Advanced ruling on rules of origin 
The time-limit and the procedure for issuing the rulings is within 30 working days with the complete 
document for determine ruling. 
2) Advanced ruling on customs tariff classification 
An application for advance tariff ruling must be in  the prescribed form as indicated in the customs 
Notification NO 13/2553. Each application shell is r estricted to a single product and accompanied by 
the documents/ information listed below: (1.1) Supporting documents which indicate the intention to import the inquired product e.g. a 
purchase order or a sale contract or an invoice or a letter of credit (L/C), or a pro forma 
invoice. etc.; and 
(1.2) A full description of goods  as necessary for making tariff decision together with other 
supporting documents such as trade name/brand, specific characteristics of goods, compositing of goods, production formula, chemi cal structure , production process by which 
the goons are manufactured, a description of packaging , the anticipated use of goods, 
manufacturer’s product literature , drawings, photographs, samples, catalogue, information on 
the tariff classification on the similar goods previously imported, etc. 
The application for the advance tariff ruling, acco mpanied by the documents/ information listed in 
(1.1) and (1.2), should be delivered to the cust oms tariff bureau, Thai Customs Headquarters in 
Bangkok at least 30 days before the  proposed date of importation of the goods. Thai customs sets WT/TPR/M/255/Add.1 
Page 148 
 
 
 
 
  standard for issuing the advance ta riff ruling within 30 working days of  the receipt of the application 
and all necessary information. 
In case of the request is accompanied only by the do cuments/ information listed in (1.2), the ruling 
response will be returned within 60 working days of the receipt of the application and all necessary 
information. 3) Advanced ruling on customs valuation 
The time limit and the procedures for issuing the adva nce ruling are shown in th e attached flow chart 
presenting a process of advance ruling on customs valuation in brief.  (Detail appears on attachment 2)  
 
7. How long do they remain in effect? Answer 
1) Advanced ruling on rules of origin 
The Advance Ruling in Thailand is Just a pilot project So it is not binding.  
2) Advanced ruling on customs tariff classification.  
The ruling is valid for one year. 3) Advanced ruling on customs valuation 
The advance ruling shall be valid for reasonable peri od of time after its issuance unless the law, facts 
or circumstances supporting the original  advance ruling have been amended.  
 
8. Under what circumstances do they cease to be valid?  Answer 
1) Avanced ruling on rules of origin 
1. When the advance ruling is in conflict with th e new tariff measures or the judicial judgment. 
2. The advance ruling is revoked, revised cancelle d, or modifier because additional information 
upon which the rulings were based or wh ich effect the rulings is received. 
3. An advance ruling may be revoked by Thai cust oms if the application for an advance ruling 
contains a misstatement or omission of/incomplete material facts. 
2) Advanced ruling on customs tariff classification 
1. Inaccurate or incomplete informa tion was provided on application  
2. From time to time, the Thai customs Tariff Decree is amended. Where the tariff item upon 
which an advance ruling was based is amended, the advance ruling ceases to be valid form the 
effective date of the amendment.  
3. There is a change at a later date  
3) Advanced ruling on customs valuation 
It is not compatible with any change  in the domestic laws and regulation; 
It is revoked, revised, concalled, or modified because additional information upon which the rulings 
were based or which effect the ruling is received.  
(b) Registration 
 According to paragraph 16 of the Secretariat Re port, "All importers and government agencies, are 
required to register.  Special treatment is given to companies eligible for a 'gold card' system:  they 
must have registered paid-up capital of not less th an B 5 million, have been engaged in import-export 
for at least three years, and be a member of the Federation of Thai Industries, the Thai Chamber of 
Commerce or the Thai Gold Card Importers and Exporte rs Association;  they must have not violated 
customs laws and regulations for three years, and must provide a bank guarantee.  They are exempt 
from regular inspection.  Government agencies,  state enterprises and companies granted duty 
exemptions by the Board of Investment are also eligible".   WT/TPR/M/255/Add.1 
 Page 149  
 
 
 
 
  9. Thailand gives special treatment to companies eligible for a "gold card".  Would it please 
provide details regarding any oth er benefits or special treatment and specify whether foreign legal 
persons are eligible for this card?  Answer 
See Attachment 3. 
 IV. TRADE POLICIES BY SECTOR (1) A
GRICULTURE  
 
According to paragraph 16 of the Secretariat Repor t, "Administration methods used for tariff quotas 
vary, although all quotas are open to all supplying countries.  Import certificates are required from the 
Department of Foreign Trade in the Ministry of Commerce for all tariff quotas except sugar 
(certificates from the Office of Cane and Sugar Board in the Ministry of Industry) and 
unmanufactured tobacco (certificates from the Excise Department of the Ministry of Finance).  Allocation of tariff quotas to importers tends to be quite complex with partial allocations on 
a first-come-first-served basis, to manufacturers for imports of raw materials, to historical importers, 
and to producer groups". 
 
10. Would Thailand please explain the quota allocation procedure?  
11. Are other methods applied?  
12. Which are the entities res ponsible for administration? 
 
Answer to questions 10-12 With regard to the above-mentioned questions on the Administration methods applied for Thailand’s 
TRQ products under the WTO, Thailand’s quota admini stration is in line with its WTO’s obligations. 
The quota allocation is based on "Licensing on Demand"  approach. The eligible importers can submit 
their requests specifying the required amount of im porting along with the required documents to the 
concerned product committees which mostly are under the responsibilities of the Ministry of 
Agriculture and Cooperatives.  According to paragraph 17 of the Secretariat Re port, "Some quotas are administered in ways that 
could limit access.  For example, in 2011 in-quota imports of maize are limited to the State-owned 
Public Warehouse Organization, which may import onl y during 1 March to 30 June.  In late 2010, in 
response to rising prices, the Ministry of Commerc e announced that it was suspending application of 
quotas and tariffs on soybeans…". 
 
13. Would Thailand please explain the point made here by the Secretariat? 
14. Which products are affected in terms of access to the country? 
 
Answer to questions 13 and 14  
As for the quota administration by limiting the access of products under the TRQ, the quotas allowed 
for imports have been considered  by the concerned product committees  which mostly are under the 
responsibilities of the Ministry of Agriculture a nd Cooperatives. In many cases, Thailand has allowed 
the imports of some specific products more th an the WTO bounded quantities with lower import tariff 
rates. Regarding the quota administration for maize in 2012, the restriction of import period is not the policy to be undertaken.   
 (b) Domestic support  WT/TPR/M/255/Add.1 
Page 150 
 
 
 
 
  According to paragraph 20 of the Secretariat Report, "In marketing year 2009/10, when stocks 
reached 6 million tonnes, the mortgage scheme was replaced by a price insurance scheme.  Under the 
new scheme, producers are paid the difference betw een an insurance price and a weekly benchmark 
price.  The scheme has become popular, with 3.5 mi llion farmers registered.  Insurance prices range 
from B 15,300 per tonne for up to 14 tonnes of fragrant rice per household to B 9,500 per tonne for up to 25 tonnes of glutinous rice per household". 
 
15. Would Thailand please explain how this sch eme operates, and what are the sources for 
setting the insurance and the benchmark prices?   16. Colombia would be interested to lear n about the methodology and functioning of the 
mortgage scheme. 
 
Answer to questions 15 and 16  
The Government has established certain categories of ri ce to be eligible for the participation in the 
scheme.  The scheme will be implemented similarly to the way it was done in the previous pledging 
schemes.  The duration for this crop has been set out from 7 October 2011 to 29 February 2012.  We 
expect that the scheme would not affect the expor t prices as the prices will be determined by the 
world mechanism and the domestic demand.  According to paragraph 23 of the Secretariat Report,  "The sugar industry in Thailand is overseen by 
the Office of the Cane and Sugar Board, is made  up of representatives of the Government, the milling 
industry, and producers.  The Board sets ceiling pric es for producers, and the quantities and prices of 
refined and raw sugar that can be sold by  the sugar mills to the domestic market". 
 
19. Would Thailand please explain the methodolog y used for setting the prices and the quantities 
for sale, the type of information used and the rel evant sources, and the intervals at which they are 
established? 
 
Answer  
Thailand sugar industry is governed by the Cane and Sugar Act B.E. 2527 (1984). According to the 
Act, the Cane and Sugar Board must allocate sugar mills the amount of sugar for their production in 
each crop year as follows:- 
Quota A sugar: White and refined sugar for local cons umption, the amount of which is set by the Cane 
and Sugar Board, taken into account the growth of  local consumption, GDP and the amount of Quota 
A sugar left from the previous years. Ex-factory prices of Quota A sugar are set by the Ca ne and Sugar Board with approval of the Cabinet. 
Wholesale and retail prices are set and announced annually by the Committee on Goods and Services 
under the Prices of Goods and Services Law B.E. 2542 (1999) of the Ministry of Commerce. 
Quota B sugar: Raw sugar exported by Thai Cane and Sugar Corporation Limited in the amount of 
800,000 tons. Export prices made by the company will be used as reference prices for exported sugar 
in the calculation of revenue sharing system. Quota C sugar: Raw, white and refined sugar left  from Quota A and B and exported by sugar mills. 
 
(iv) Support levels 
 
According to paragraph 28 of the Secretariat Repor t, "Thailand's most recent notification for domestic 
support is for the years 2005, 2006, and 2007.  This s hows that about half of all support to agriculture 
was for infrastructural services (mostly for dams , drainage, and irrigatio n) and did not benefit 
producers directly.  The total support for infrastruct ural services and other measures notified in the 
Green Box averaged about B 40 billion in the 2000-07 period (Chart IV.1).  In addition to Green Box  WT/TPR/M/255/Add.1 
 Page 151  
 
 
 
 
  support, Thailand also provides price supports for se veral products, particularly rice, as well as input 
subsidies". 
 
20. Would Thailand please specify what products or inputs other than rice receive price support? 
 
Answer  
Products receive price support differ year by year, de pending on the market situation of each product 
in that year. For example, in 2005 there were 6 pr oducts (maize, manioc, coffee, longan, rambutan 
and garlic) received price support, while only 3 pro ducts (manioc, longan a nd eggs) received price 
support in 2006. 
ATTACHMENT 1 
 CUSTOMS AUTOMATION SYSTEM  
Prior to the introduction of an automated system, trade-related documents were manually prepared 
and processed by traders and Customs officers respectively. Given the constraints faced by Thai Customs because of the increasing volume of inte rnational trade and limited resources, Customs 
implemented Electronic Data Inte rchange (EDI) to control all Cu stoms operations by introducing 
computer clearance system for exports in 1998. Th e system has been expanded to cover imports and 
fully implemented at seaports a nd airports nationwide in 2000. 
 Computer techniques are increasingly used by Thai  Customs to support a wide range of Customs 
operations.  "e-Customs" was impl emented on 1 January 2007, compri sing of e-Import, e-Export, e-
Manifest, e-Payment and e-Warehouse.   
The "e-Customs" system is the comprehensive syst em developed by Thai Customs to facilitate and 
process all commercial goods exported from and importe d into Thailand. It is widely recognized as 
one of the most sophisticated and integrated bus iness-oriented systems.  The e-Customs system 
significantly cuts costs, and reduces paperwork requ irements for both Customs and relevant trading 
communities. It provides business operators such  as exporters, importers, Customs brokers and 
shipping companies with a paperless environment and a one stop service. 
 
1 e-import procedure 
(1) When a shipment arrives in Thailand, importers are required to file an import declaration for 
the import of goods and electronically lodge the declaration to the e-Customs system. Imported cargo are not legally entered Thailand un til after the shipment has arrived within the 
port of entry, delivery of the imported cargo has been authorized by Customs, and applicable 
taxes and duties have been paid. It is the responsibility of an importer to arrange for 
examination and release of the imported cargo.  
(2) In addition, depending on the nature of the impor t, and regardless of value, the importers may 
need to obtain a permit to facilitate clearance  of the imports. Some, not all, of the goods 
requiring permit, and the import permit shall be issued by the relevant  issuing agencies prior 
to the importation. 
Documents 
In case of Red Line (high risk shipment), the minimum documents required to be submitted to 
Customs for the clearance of imports consists of:  
(3) Import  Declaration (Electronic Document) 
(4) Bill of Lading (B/L) or Air Waybill 
(5) Invoice (Electronic Document) 
(6) Packing List 
(7) Import License (if applicable) WT/TPR/M/255/Add.1 
Page 152 
 
 
 
 
  (8) Certificates of Origin (if applicable) 
(9) Other relevant documents such as catalogues, product ingredients, etc. 
Declaration and Clearance Process 
(10) Under the e-Import system, there is no need for relevant parties to submit 
paper documents as all data is tran smitted electronically from an importer 
computer system to the e-Customs system. Generally, declaration and 
clearance process include 4 stages: 
(1) Transmission and/or Submission of a Declaration : The first stage of import clearance 
process is to complete an Import Declaration and submit it to the e-Customs system. Prior to the 
arrival of cargo or upon the arriva l of cargo, a shipping agent electronically transmits a ship or 
aircraft arrival report, and manifest information to the e-Customs system. If there is no error, the 
ship or aircraft arrival report number is auto matically generated by the e-Customs system and 
the response message is transmitted to the shipping agent.  When the cargo arrives at the port or 
place of entry, an importer or a Customs broker submits an Import Declaration to the e-Customs system.  
(2) Check and Verification of the Declaration : The second stage is the check and verification of 
the Declaration and all supporting documents (in ca se of red line) made by an importer. Again, 
the e-Customs system validates the given data  and issues a Declaration and Payment Numbers 
within a few seconds in conjunction with the e-payment system. In addition, the selectivity profile system will validate the transmitted data and specify the Goods Declaration to be the 
Green Line or Red Line.   
(3) Payment of Import Duties and Taxes : The third stage is payment of applicable duties and 
taxes and/or guarantee. There are currently 2 options for the payment of import duties and 
taxes: payment at the Customs Department, and payment via the e-Payment system.   
(4) Inspection and Release of Cargo : The last stage is to inspect and finally release cargo from 
Customs custody.  
(4.1) In case of Green Line , an importer submits the verified Declaration together with the 
payment receipt at appropriate warehouses for the release of the imported cargo. At this stage, cargo data is screened against pr edetermined selectivity criteria in order to 
indicate whether the Declaration is under a Red Line (requiring thorough physical inspection) or a Green Line (permission of release). A Green Line Declaration is cleared within a few minutes without Custom s intervention. Then, the cargo status is 
electronically forwarded to both the Port Authority and the importer/Customs broker.  
(4.2) In case of Red Line , the predetermined selectivity criteria indicate that the cargo is 
under the Red Line, the Port Authority re moves the cargo container for physical 
inspection by Customs before the release of the cargo. 
 
      
 
    
 
 
Receive declaration  
& payment Nos. 
Forward ship arrival 
report, manifest & 
container list 
Receive ship arrival 
report No. 
Forward Import 
 Declaration 
11  
22  Customs Port of Entry Shippin g/Agent 
Validate data & 
issue ship arrival  
report No. 
Importer/Broker 
Verify data, then 
 issue  declaration & 
 payment Nos. 
VAN 
VAN 
E-Payment Bank
33
Contact a warehouse  
owner for release of 
goods 
44  
Red 
Line 
Green 
Line 
Cargo 
Inspection 
Cargo 
Release 
 WT/TPR/M/255/Add.1 
 Page 153  
 
 
 
 
  2 e-Export Procedures 
Goods intended for export from Thailand are subj ect to normal export procedures. All goods being 
exported from Thailand are subject to Customs c ontrol and must be reported to Customs.  
 Customs role in the exportation of goods is to en sure that all goods being exported from Thailand are 
reported as required. Customs also administers cont rols on behalf of permit issuing agencies on the 
export of restricted goods and gathers information re garding the nature and volume of exports to assist 
government and industry in policy and decision-making.  Unless specifically exempted, goods may not be load ed on a ship or aircraft for export unless they 
have been entered for export in the Customs syst em and Customs has given approval to export. Most 
applications for an Export Declaration are su bmitted electronically via the e-Export system.  
 Documents 
In case of red line (high risk shipment), the minimum documents required to be submitted to Customs 
for the clearance of export consists of:  
(1) Export  Declaration (electronic document) 
(2) Invoice 
(3) Export License (if applicable) 
(4) Certificates of Origin (if applicable) 
(5) Other relevant documents such as catalogues, product ingredients, etc. 
Declaration and Clearance Process 
Similar to the e-Import system, once the Export Decl aration data has been entered into the Customs 
computer system, it will be subjected to automated processing, for example, data validation, data 
matching, release status, etc. and the cargo is  released. Generally, the export clearance processes 
include 4 stages: (1) Transmission and/or Submission of a Declaration : The export procedures start when an 
exporter/broker submits an Export Declara tion using ebXML message to the e-Customs 
system. 
(2) Check and Verification of a Declaration : The second stage is the check and verification of 
the Declaration. As soon as the e-Customs system receives the Export Declaration data, such data is preliminary validated. In cases where the validated data contains no error, the Export 
Declaration number is automatica lly generated in conjunction with the e-Payment system (if 
export taxes and duties are applicable.). The r esponse message, then, is transmitted to the 
exporter/broker. In addition, the selectivity pr ofile system will validate the transmitted data 
and classify the Export Declaration into two categories: Green Line and Red Line. 
(3) Payment of Duties and Taxes : The third stage is payment of applicable duties and taxes 
and/or guarantee. There are currently 2 options  for the payment of import duties and taxes: 
payment at the Customs Department, and payment via e-Payment system.   
(4) Inspection and Release of Cargo : The last stage is to inspect and finally release cargo from 
Customs custody. At this stage, a freight  forwarder loads cargo into containers and 
electronically sends a cargo control report to the e-Customs system. The e-Customs system 
validates the data, and reports any error for i mmediate online correction. If no error is found, 
the cargo control report number is automatica lly generated by the system and the response 
message is forwarded to the freight forwarder and the exporter/broker. The freight forwarder 
then prints out the cargo control report with its  number and removes the cargo to the port of 
exit. At this stage, the Customs officer at a sub-gate checks whether the declaration is a Red 
Line or a Green Line.  (4.1) In case of Green Line , the Declaration is cleared within a few minutes. After the 
cargo is exported, a shipping company/agnt is required to submit, the cargo manifest WT/TPR/M/255/Add.1 
Page 154 
 
 
 
 
  information to the e-Customs system. The sy stem then automatically loads the Export 
Declaration and transmits the response me ssage back to the exporter/broker.  
(4.2) In case of Red Line , the cargo is removed for physical inspection. 
   
 
 
 
Forward Cargo Control 
Report to Customs 
Forward Export 
Declaration
Receive Declaration  
& Payment Nos. 
Loading cargo into 
containers 
11  
33  Customs Port of Exit Exporter/Broker 
Issue Declaration 
& Payment Nos. 
Freight Forwarder 
Verify data, then 
 issue Cargo Control 
Report No.
VAN 
VAN 
E-PaymentBank
22
Record No. of Cargo 
Control Report & check 
Risk Profile 
44  
Red Line 
Cargo Inspection
Cargo Loading Print out the Report & 
remove containers to the  
Port/place of exit 
 WT/TPR/M/255/Add.1 
 Page 155  
 
 
 
 
  ATTACHMENT 2 
 
 
 
 
1.  
2.  
3.  
4.  
 
 Yes
YesNo	The	importer	submits	FORM	1	
requesting	for	Advance	Ruling	
on	Valuation 	Is there any 
designated 
personnel?Letter	of		authorization	
Customs Officer accepts 
the Request Form Is the document 
accurate and 
complete? 
Inform	the	importer
Customs	Officer	considers	
the	Request	FormThe	 importer	 submits	accurate	 and	 complete	
document	
Is there enough 
information for 
consideration? 
Customs	 Officer	 issues	 a	letter	 informing	 the	importer	 to	 submit	
additional	 document	
(Form	4)	Customs	 Officer	
proceeds	 onto	 Pre‐Valuation	 Process	
according	 to	 GATT	
Valuation	
The importer 
submits the 
additional 
document within 
15 days? Customs	 Officer	i s s u e s 	a 	l e t t e r 	
cancelling	the	Request	
Form	(Form	5)	Is there enough 
information for 
consideration? Can the Customs 
Officer consider 
within 30 days 
from the date of 
receiving complete 
information?Customs	 Officer	 issues	 a	 letter	
indicating	the	reasons	and	expected	
date	to	finish	consideration	 process		
Customs	Officer	issues	a	letter	indicating	 the	 result	 of	 the	
valuation	(Form	2)	Finish	
consideration	
process	Yes
YesYesNo
No	
NoNoNo
YesWT/TPR/M/255/Add.1 
Page 156 
 
 
 
 
 ATTACHMENT 3 
 
GOLD CARD 
The Gold Card scheme is one of a measure to fa cilitate import and export pr ocedures. Similar to a 
Licensed Customs Broker scheme, in this connecti on, importers/ exporters with good record and 
reliable background who meet the criteria in the Customs Notification No. 90/2553 are granted ‘Gold 
Card’ status. 
ELIGIBLE APPLICANTS 
 A legal person with a paid register cap ital of not less than 5 million baht 
 Being import or export business for at least 3 years and processing Customs formalities via 
automated system 
 Being a member of the Federation of Thai Industries, or the Board of Trade of Thailand, or the 
Thai Chamber of Commerce, or the Thai Gold Card Importer and Exporter Association, or the 
Thai National Shipper’s Council or the orga nizations with similar appearance. These 
organizations must certify that the applicants have a reliable status 
 Have a stable financial status, considered from th e financial statements submitted to the Ministry 
of Commerce. These financial statements must be  approved by a certified public auditor that the 
applicant had earned a profit for at least 2 past consecutive years. Also the applicant should never 
been denied to certify the financial status by any commercial organizations as above    
 Do not have any record of offences against the Customs Laws or other Cu stoms related laws for 
the period of 3 years prior to the date of application except for minor offences or indulged 
offences by the Customs Department 
 Place a bank guarantee or any security, as approved by Thai Customs, of 2 million baht. 
(However, an applicant who is a member of th e Customs Transparency Partnership Project is 
allowed to place a bank guarantee or any security of 1 million baht.) 
The documents required to ap ply for gold card importers/ ex porters are as listed below: 
 A request form as indicated in the Customs Notification No. 90/2553  
 A certificate of juristic person registration 
 Financial statements submitted unde r the requirement of the Ministry of Commerce for the past 3 
years and the certificate of financial status from the commercial organizations 
 A VAT registration (Por Por 20) 
 A list of stakeholder which is certified, not more  than 30 days, by the Department of Business 
Development 
 Other relevant documents such as a copy of a ma nager’s identification card, volume of imports, 
exports and domestic sales etc. 
BENEFITS OF THE AUTHORIZED GOLD CARD MEMBERS 
(1) Importation 
 Exemption from physical inspection except when rules and regulations state otherwise. 
 In case where samples of goods have to be sent to the laboratory or Customs has to verify the 
samples of goods, such samples will be sent to  relevant offices after the goods are cleared 
from Customs, except when rules and regulations state otherwise. 
 In case of bulk cargo, no quantity insurance is required. 
 Customs examines the value of goods, tariff clas sification, and tax and duty calculation after 
the goods are cleared, except that certain offences or fraud are found 
(2) Exportation 
 Exemption from physical inspection except when rules and regulations state otherwise   
 Exemption from taking samples of goods except when rules and regulations state otherwise. 
   WT/TPR/M/255/Add.1 
 Page 157  
 
 
 
 
  (3) Re-Export 
 The imports remaining in Customs custody and to be re-exported at different port/place from 
when they were imported is subject to the paym ent of one-tenth of applicable taxes and duties 
but not more than 1,000 baht. 
 The goods are not jointly examined by an o fficer from the Investigation and Suppression 
Bureau except when there is a reasonable ground to do so. 
(4) Transshipment : The gold card importers/ exporters are allowed to process Customs 
formalities for transshipped goods with a secu rity of the gold card importers/ exporters 
instead of a security of a person requesting for transshipment. 
(5) Transit:  The gold card importers/ exporters are allowed to process Customs formalities for 
transit goods with a security of the gold card im porters/ exporters instead of a security of a 
person requesting for transit. 
(6) Post Clearance Audit : The gold card importers/ exporters are allowed to post  clearance audit 
keep the original Declaration including all relevant documents only 2 years after the goods 
are cleared from Customs 
(7) Duty Drawback under Section 19 bis 
a. The gold card importers / exporters are allowed to reduce  for 5% of normal tariff rate 
under Section 19 bis 
b. A production formulation submitted by the gol d card importers/ exporters are approved 
within 10 working days after the date of receiving the request with complete and 
correct documents. 
(8) Duty Compensation:  The verification of the paid duty compensation is conducted within the 
days from the date of approval as depend on the amount of list of items 
a. Not more than 10 list of items within 5 working days  
b. Over 10 list of items but not more than 50 list of items within 10 working days 
c. Over 50 list of items within 15 working days 
The time-limited above is subjected to the re quest with complete and correct documents. 
(9) Bonded Warehouses : A production formulation submitte d by the gold card importers/ 
 exporters are approved promptly  CONTACT 
For further inquiry and information, please contac t Registration and Customs Privileges Division 
Customs Standard Procedures and Valuation Bureau .  At tel. 02-667-7902 or call center tel. 1164  
The Customs Notification No. 90/2553 can download at http://www.customs.go.th. 
 WARNING 
The information in this website is intended as a ge neral guideline only and subject to change without 
prior notice.  
 
PERU 
 
IV. TRADE POLICIES BY SECTOR 
(4) SERVICES (i) Main features and multilateral commitments 
 
1. According to paragraph 65, "At the regional level, Thailand has adopted services 
liberalization commitments under the ASEAN Fram ework Agreement on Services (AFAS), and the 
ASEAN Economic Community Blueprint (signed in 2007);  the latter includes a commitment to substantially reduce all restrictions on tr ade in services by 2015 (Chapter II(6)(ii))". 
 WT/TPR/M/255/Add.1 
Page 158 
 
 
 
 
 Peru would like to know whether the intended future liberalization of trade in services at ASEAN level 
involves the examination and modification of restri ctions currently applicable to foreign service 
suppliers from ASEAN and non-ASEAN countries alike.  Answer 
Thailand’s services liberalization commitments under the ASEAN Framework Agreement on Services (AFAS) and the ASEAN Economic Community Bluepr int are the steps towards the integration among 
ASEAN Member Countries to become ASEAN Commun ity similar to the process of the European 
Union. Therefore, the modification of restrictions that applicable to ASEAN might not be applicable 
to other non-ASEAN countries.  The progressive liberalization of trade in services under AFAS is in accordance with the General Agreements  on Trade in Services (GATS).   
 (ii) Financial services 
 
2. According to paragraph 75, "the Finance Minister, with the advice of the BOT, has the authority to allow foreign investors to hold more  than 49 per cent of a commercial bank's shares, 
where this is deemed necessary to improve the fina ncial performance or strengthen the security of any 
financial institution, or the financial system as a w hole.  This authorization may be granted according 
to specified rules and criteria and subject to a time- limit.  The authorities indicated that these rules and 
criteria are in the process of being defined".  
Peru would like to know whether a specified timeframe  has been set for defining the rules and criteria 
that are to allow foreign investors to hold more than 49 per cent of a commercial bank's shares. 
 
Answer 
In the case where it is deemed necessar y to rectify the operations or to strengthen the stability of any 
financial institution or the stability of the financia l institutions system, the Minister of Finance upon 
recommendation of the Bank of Thailand may allow foreign investors to hold more than 49% of 
shares in these institutions for a period of ten years.  After ten years, foreign investors will not be 
forced to sell their shares but may not purch ase any additional shares, unless the amount of 
shareholding is less than 49% of total shares.  Add itional shares may then be acquired to bring foreign 
shareholdings to the maximum of 49%. 
 
(iii) Telecommunications  
3. According to paragraph 122, "These chang es as well as other regulatory improvements appear 
to be in line with Thailand's intention to libera lize the telecommunication sector, as indicated in its 
multilateral commitments.  However, such changes have not yet been incorporated in Thailand's 
GATS Schedule as indicated by its commitment that  upon the passage and entry into force of the 
necessary new communication acts '... commencing in the year of 2006, Thailand will introduce the 
market access elements as contained in those acts into the relevant parts of its Schedule of Specific 
Commitments relating to the supply of  public telecommunication services'". 
 
Peru would like to know whether an approximate timef rame has already been set for the entry into 
force of the new communication acts.  
Answer 
Over the past 3 years, the telecommunications sector in Thailand has been going through drastic 
reforms and restructuring in order to r espond to increased demand and technology for 
telecommunication services and the need for better admi nistrative efficiency and regulation in this key 
sector.  WT/TPR/M/255/Add.1 
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  Under these reforms, it is anticipated that a new re gulatory body (NBTC) will be set up this year to 
oversee the operations of this sector while the Ministry of Information and Communication 
Technology will be responsible for policy maki ng and mapping out the direction for further 
liberalization and to reflect the outcomes in Thailand’s Schedule of Commitments thereafter. The Ministry of ICT with the cooperation with the related agencies such as NBTC are on the process 
of improvement (drafting) the schedule of commitment  to be conformed to the rule and regulation on 
Telecommunications especially on Telecommunications  Business Act (2001) and the 2nd version of 
the Telecommunications Business Act (2006).  (v) Tourism  4. Paragraph 176 states the following:  "According to the authorities, there is no discrimination 
between domestic and foreign service suppliers as l ong as foreigners wishing to undertake tourism 
business in Thailand obtain a licence from the Bureau  of Tourism Business and Guide Registration." 
 
Peru would like to know what are the requi site criteria for obtaining such a licence. 
 
Answer 
To obtain a travel agency license, foreigner is required to comply with the regulations under the 
Travel Agency Business and Guide Act B.E.2535.  Th e Act generally allows foreigner to obtain up to 
49% of equity ownership in companies, registered  partnerships or limited partnership engaged in 
travel agency business. However, a licensee must  possess Thai nationality and has a domicile in 
Thailand.  For tour guide, the Royal Decree prescrib ing works relating to occupation and profession in 
which an alien is prohibited to e ngage, B.E. 2522 (1979) prohibits forei gner to work as a tour guide in 
Thailand.  
 
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