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III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. The general thrust of Thailand's trade policy rema ins liberal, and the Government continues to 
encourage trade and improve market access in most cases (Chapter II).  The tariff remains one of the 
main trade policy instruments.  The impact is st ronger on prices than revenue, however, with taxes on 
imports and exports (about B 72 bil lion) having declined to around 6%  of tax revenue, less than 5% of 
total government revenue, and about 0.8% of GDP.1 
2. Since 2007, Thailand has adopted the ASEAN Harmonized Tariff Nome nclature (the AHTN 
Protocol).  This follows the six-digit comm odity classification codes of the World Customs 
Organization's Harmonized System (H S) adding two more digits to the codes for subheadings used 
across ASEAN.  The system applies to trade insi de and outside ASEAN.  The implications are 
discussed below (Section (2)(ii)), as are the co mplexities of Thai tariffs, with their 31 ad valorem  
rates of 0-80%, 19 specific-duty rates, 158 alternate-duty rates, over a quarter of tariff lines unbound, and peak ad valorem  rates on imports competing with locally  produced goods, such as farm products, 
automotive products, motorcycles, alcoholic beverages,  fabrics, paper and pape rboard, and restaurant 
products.
2 
3. The gap between bindings and applied rates allo ws tariffs to be raised and creates some 
uncertainty.  But the overall trend is for tariffs to continue to fall.  The period covered by the last 
Review of Thailand saw general cuts in duties, to 1% on raw materials, to 5% on intermediate 
products, and to 10% on finished products, and furthe r cuts were made on imports used by the food 
and automotive sectors and electronics products .  In 2008, duties were eliminated on 150 raw 
materials.  In October 2010, certain automotive pa rts for assembling or manufacturing hybrid-electric 
vehicles were exempted from import duty for three years, a move aimed at making Thailand a centre for producing environmentally friendly cars.  From November 2010, small and medium-sized 
enterprises have been eligible to apply for duty exemption on certain types of machinery.
3 
4. However, imports still often fa ce burdensome requirements incl uding extra fees, surcharges, 
and certificate-of-origin requirements.  They are re gulated through customs controls, duties and taxes, 
and currency controls, all of which ar e being moderated to some extent.4 
5. Despite remaining shortcomings in its syst em, Thailand supports trade facilitation and 
continues to streamline many of its customs pro cedures by using on-line processing and payment, and 
introducing "single window" services. Import licen sing and prohibitions on various items have 
remained generally unchanged during the review peri od.  They are applied for economic reasons such 
as infant industry protection.  During the period under review, Thailand notified a new safeguards law 
and initiated a number of safeguards and anti-dumping cases. 
6. The law allows export taxes to be levied on a number of products.  The persistence of 
relatively high statutory export taxes on a few co mmodities (by-products of animal hides and wood 
and sawn wood products) as well as the possibility of  reintroducing others (e .g. on rice and rubber) 
constitutes a form of assistance to domestic downstr eam industries.  More importantly, if Thailand 
was to apply export taxes to produc ts of which it is a major supplier, they could exacerbate world 
price fluctuations.  Export controls in the form of registration requirements, export licensing, quotas, 
                                                      
1 Bureau of the Budget (2010), p. 28; and IMF (2010), p. 31. 
2 Economist Intelligence Unit (2010a), p. 90. 
3 Economist Intelligence Unit (2010a), p. 90; and World Bank (2011), p. 81. 
4 Economist Intelligence Unit (2010a), p. 93. Thailand WT/TPR/S/255 
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and prohibitions apply to some 30 products, ma inly for purposes of safety, public health, 
environmental, and protection of intellectual propert y, or to comply with Thailand's international 
agreements.  Export licensing requirements on a few products have been removed since the previous 
Review.  Certain goods, mainly food staples, are r eserved by law to ensure that domestic needs are 
met before exports can be permitted.  
7. Thailand has various export promotion a nd incentive programmes, including bonded 
warehouses, duty drawback, and other duty and ta x refund schemes, as well as tax and non-tax 
benefits under the Industrial Estate  Authority of Thailand and the Customs Free Zones scheme.  In 
2007, Thailand notified the WTO that all export s ubsidies to be eliminated under programmes for 
which it had been granted an extension had been te rminated.  Exports remain eligible for "tax and 
duty compensation", which is set as a fixed percenta ge of the f.o.b. value for each product, hence 
opening the possibility of over- or under-compensati on, notwithstanding regular adjustments.  The 
state-owned Export-Import Bank of Thailand (EXI M Bank) provides a wide range of credit and 
insurance facilities to promote exports of goods and services, and operates in competition with 
commercial banks.  Statutorily, any severe lo sses incurred by the EXIM Bank from specific 
operations carried out in compliance with government policies are to be compensated by the Ministry 
of Finance.  However, the authorities have  indicated that this has never happened. 
8. A new law on safeguards was enacted in Augus t 2009.  Under the new law, a Committee on 
Safeguards may determine whether to impose safeguard s based on an investigation carried out by the 
Department of Foreign Trade and following a petiti on from domestic producers of like products.  At 
the time of writing, provisional safeguards had b een applied in one case.  The law on anti-dumping 
and countervailing measures has not been changed since the last Review of Thailand. Between 
1 January 2007 and 31 May 2011, Thailand initiated six anti-dumping cases; after review, it continued 
to apply anti-dumping duties in 19 cases and terminated them in 5.   
9. Government procurement underwent some re form during the review period with the 
completion of the first phase of a comprehensive electronic government procurement system.  This 
first phase, e-Auction, applied to government contracts of B 2 milli on or more.  However, government 
procurement remains complex, as different govern ment agencies are responsible for their own 
procurement, and several procurement methods are used, not all of which are open to competition. 
10. Taxes provide nearly all of government re venue and most tax is from income tax on 
companies, VAT, and excise duties.  The corporate income tax system is relatively complex with a 
number of different rates applied that depend on the size of the corporation and whether it is listed on 
the stock exchange or the alternative investment ma rket.  Adding to the complexity are the different 
allowances and tax relief measures designed to enco urage investment, which cost about B 160 billion 
per year.  Ostensibly, the VAT system is quite simp le with a standard rate of 7% applied to most 
goods and services.  However, the application of the system appears to be quite complex and was the 
subject of a WTO dispute that found, inter alia, that it discriminated against imports.  The excise 
system comprises many different rates on various goods and services. 
11. Thailand continues to apply a system of price monitoring and price controls on a wide range 
of products and services.  Prices of a broad range  of goods and services are regularly monitored for 
changes, and price controls are applied to some of them by setting maximum prices, requiring advance notice before prices can be increased, or by labelling requirements showing the price paid.  
12. Thailand continues to strengthen the protecti on of intellectual property rights, including 
enforcement, although a number of proposed laws rema in as drafts because of political disruption to 
legislation and some trading partners remain concer ned about abuses.  It is also promoting creativity WT/TPR/S/255 Trade Policy Review 
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and invention through intellectual property.  Consider able efforts continue to be made to increase the 
level of transparency and disclosure.   Nevertheless, they have only been partly effective in reducing 
allegations of corruption in certain areas, such as customs procedures, customs valuation, tariff-rate-
quota licensing, government procurement, and granting tax incentives. 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures 
(a) Recent developments 
13. Improving customs procedures and trade facilitati on in general are important objectives of the 
Thai Government and a major concern for the privat e sector.  The main official policy objectives are 
transparency, simplicity, honesty, using an update d version of the Harmonized System of tariff 
classification, and quick and secure electronic processing.  
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 Thailand, which the Government hoped would be fully operational by 
late 2011 or 2012, that would allow traders to use a single contact point to reach all the required 
authorities and permit-issuing agencies.  These elect ronic innovations continue to cut processing time, 
which was already falling because of reforms introduced in earlier years.5  Electronic services on the 
department's "customs clinic" website cover: exch ange rates, vessel and flight schedules, customs 
over-time fee checking, e-tracking, software for pre- transfers, import and export statistics, advanced 
ruling on customs tariff classification forms, advan ced ruling on customs valuation forms, advanced 
ruling on rules of origin, custom s fee forms, duty compensation form s, duty drawback forms, customs 
declaration forms, registration forms, counter servi ce submission forms, appli cation forms for agents.6  
It was also reported that these reforms would cut the widespread use of illegal payments and help 
eradicate the Customs 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 participation in solving probl ems, Thai and foreign companies were still 
complaining of a serious problem in 2010.7 
15. Thailand is not yet a contracting party to the International Convention on the Simplification 
and Harmonization of Customs Procedures (Kyoto C onvention) or the International Convention on 
the Harmonization of Frontier Controls on Goods;  ho wever, it has expressed its intention to accede to 
the Revised Kyoto Convention.  At the time of its  previous Review, Thaila nd was amending its laws 
to comply with the Revised Kyoto Convention and in  June 2007, the amendments were at the final 
stage of being considered in Parliament, but the pr ocess was disrupted by po litical events.  However, 
Thai officials say that present customs procedures ar e largely consistent with the revised convention.  
The Department website says its new-generation system, known as "e-C ustoms", is consistent with 
the standards and guidelines expressed in the Revise d Kyoto Convention (RKC), and is integrated 
with the systems of other government agencies and clients, such as transport operators, banks, Free 
Zones, and warehouse operators so that  it can be used quickly and securely.8 
                                                      
5 WTO (2008). 
6 Viewed at:  www.customsclinic.org, e-services page [15 June 2011]. 
7 Economist Intelligence Unit (2010a), p. 91. 
8 See: www.customs.go.th/Customs-Eng/CargoCl earance/CargoClearance. jsp?menuNme=Cargo, 
[15 June 2011]. Thailand WT/TPR/S/255 
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(b) Registration 
16. 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 
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 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. 
(c) Customs inspection and valuation procedures 
17. Further reforms to strengthen customs valua tion under the WTO Agreement were introduced 
during the period covered by the last Review.
9  Under the current procedures, valuation takes into 
account information on invoices and other documen ts, 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 transacti on value of identical goods and similar goods;  the 
deductive value;  computed value;  and a fallback es timated value.  Importers may appeal valuations 
within 30 days under customs laws in force sin ce 2000.  The decision of the Appeal Committee is 
final except if the importer raises concerns in a Ta x 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.  The authorities say this is for transparency and consistency, 
and to enable importers, exporters , international trade entreprene urs, and others to be more 
competitive. 
18. The Customs Department collects fees for cust oms services, including for documentation, and 
charges for attendance at Cust oms House during holidays or after office hours.  The import 
declaration fee is B 200 per transaction.10 
19. A WTO dispute DS371 was launched in February 2008 when the Philippines complained that 
Thai customs procedures and taxes on cigarettes di scriminated against Philippine exports.  The 
dispute panel found in favour of the Philippines in November 2010, and in June 2011 the Appellate 
Body upheld the core findings, which Thailand had challenged. 
20. Thailand does not require preshipment inspection for imports. 
(d) Rules of Origin 
21. Thailand does not have any legislation on non- preferential rules of origin and the rules 
applying to preferential rules of origin are taken from the relevant agreement, for example, imports 
from other ASEAN countries are subject to the AS EAN CEPT Scheme, imports from New Zealand to 
                                                      
9 See WTO (2008), which includes more details and a summary of the review after Thailand notified 
the laws used to apply the WTO Agreement. 
10 Fees are not easy to find on the otherwise informative Customs Department website except in sample 
valuations where the fee is given as US$50. Viewed at:  www.customsclinic.org [15 June 2011]. WT/TPR/S/255 Trade Policy Review 
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the Thailand-New Zealand Free Trade Agreement, a nd imports from Japan to the Thailand-Japan 
Economic Partnership Agreement.11  
22. In general, the basic rule is a product whol ly obtained or that has undergone substantial 
transformation in the country of export.  Substantia l transformation is defined as a change in customs 
classification and, for some products, value adde d above threshold which varies depending on the 
agreement.  
23. The Rules of Origin Division, under the Ta riff Classification Directorate of the Customs 
Department, reviews the progress of harmonizat ion, improvement, and simplification of non-
preferential and the preferential rules of origin. 
(ii) Tariffs  
(a) Applied MFN tariffs 
24. Since the start of 2007, Thailand has applie d the ASEAN Harmonized Tariff Nomenclature 
(AHTN) which has standardized the 8-digit cod es across ASEAN, simplifying trade and customs 
procedures.  It also had the effect of increasing the number of tariff lines from 5,505 to 8,300.  Although the application of the AHTN has had an imp act on the statistics for tariffs, the rates applied 
to specific products have not changed since the previous Review.  One effect the change in 
nomenclature has had on statistics has been a slight increase in the average ta riffs, not because tariffs 
on any product were increased but because the tari ff lines in the 2006 tariff book that were divided 
into two or more lines tended to be those that ha d above average tariffs.  Similarly, the apparent 
decrease in the proportion of non- ad valorem  tariffs is because these tariff lines were not divided by 
the application of the AHTN (Tables III.1 and AIII.1). 
Table III.1 
Tariff structure 
(%) 
MFN applied Final 
    2006 2011 bounda 
1 Bound tariff lines (% of all tariff lines) 73.7 73.6 73.6 
2 Simple average rate 11.0 11.2 28.0 
   WTO agricultural products 25.0 26.5 36.6 
   WTO non-agricultural products 8.8 9.0 26.0 
       Textiles  8.9 9.3 28.6 
        Clothing 30.1 29.6 30.0 
   First stage of processing 12.8 14.1 28.8 
   Semi-processed products 4.1 3.9 27.4 
   Fully processed products 14.8 13.8 28.1 
3 Duty free tariff lines (% of all tariff lines) 18.5 18.6 2.0 
4 Tariff quotas (% of all tariff lines) 1.0 1.2 1.2 
5 Domestic tariff "peaks" (% of all tariff lines)b 3.9 5.6 0.8 
6 International tariff "peaks" (% of all tariff lines)c 25.2 24.2 87.6 
7 Overall standard deviation of tariff rates 14.0 14.1 14.5 
  Table III.1 (cont'd) 
                                                      
11 Thai Customs Department online information.   Viewed at:  http://www.customsclinic.org/ 
index.php?option=com_content&view=article&id=159&Itemid=173&lang=en [May 2011]. Thailand WT/TPR/S/255 
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MFN applied Final 
    2006 2011 bounda 
8 Non- ad valorem  tariffs (% of all tariff lines) 22.5 9.2 9.6 
9 Non- ad valorem  tariffs with no AVEs (% of all tariff lines) 19.9 8.8 9.5 
10 Nuisance applied rates (% of all tariff lines)d 12.2 10.3 0.1 
 
Note: The 2006 tariff is based on HS02 nomenclature consisting of  5,505 tariff lines;  2011 tariff is based on HS07 nomenclatur e 
 consisting of 8,300 tariff lines.  Calculations  including AVEs provided by the authorities for non- ad valorem  rates.  In case of 
 non-availability the ad valorem  part of alternate rates (only those saying "which ever is higher") is taken into account.  Excluding 
 in-quota rates.  
a Based on 2011 tariff schedule.  Implementa tion of final bound rates was reached in 20 05.  Calculations are based on bound tar iff 
 lines only.  
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied rate. 
c International tariff peaks are defined as those exceeding 15%. 
d Nuisance rates are those greater than zero, but less than or equal to 2%. 
 
Source : WTO Secretariat calculati ons, based on data provided by the Thai authorities. 
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.  
26. Thailand has a relatively complicated tariff stru cture 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. 
Chart III.1
Tariff distribution by type of duty, 2011
(Share of total tariff lines)
Source: WTO Secretariat estimates, based on data provided by the authorities.Ad valorem duty
72.3%
Duty free
18.5%Non- ad 
valorem duty
9.2%
Note : Table III.1 shows 18.6% for duty-free rates;  this includes 0.1% of specific rates that have an AVE of 0%.Alternate duty
8.8%Specific duty
0.4%
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27. As noted above, the average applied MFN tariff increased slightly to 11.2% as a result of the 
increase in the number of tariff lines rather than actua l tariffs increases.  Tariff rates vary considerably 
from one HS chapter to another and within chapters .  Agricultural products (WTO definition) tend to 
have the highest tariffs, with an average applied ra te of 26%.  Within agricu ltural products, beverages, 
spirits, and tobacco have the highest tariffs with an  average of 49%.  The greatest variability in any 
sector, and the highest average tariff outside of agricu lture, is in transport equipment with a standard 
deviation of 26 and an average of 33% (Chart III.2). 
28. Thailand has notified the WTO Committee on Agriculture that it has 24 tariff quotas for 
agricultural products, including for products that Tha iland is a net exporter of, such as rice and sugar.  
Fill rates vary considerably from one quota to anothe r.  In the 2004-08 period, no in-quota imports 
were reported for garlic, copra, maize for feed, palm  oil, coconut oil, or longans;  while in-quota 
imports were well in excess of the minimum tariff quota for tea, soya bean s, and soya bean cake.12 
(b) Bound tariffs 
29. According to the authorities, Thailand has bound 74% of the 8,300 ASEAN harmonized tariff 
lines under the HS2007 nomenclature, which Thailand h as been using since 1 January 2007.  Of the 
26% of tariff lines that the authorities indicated are unbound, several are for agricultural products.13  
On average, bound tariffs are more than twice as high as applied MFN tariffs and they have greater 
variability both between and w ithin product categories.   
(c) Preferential tariffs14 
30. Thailand is a founder member of the ASEAN a nd applies the ASEAN fre e-trade area rules, 
which essentially provide for tariff- and quota-free access for practically all goods into Thailand.  As a 
member of ASEAN, Thailand applies the trade agr eements signed with China, Japan, Korea, India, 
Australia, and New Zealand.  It has also negotiated a number of bilateral trade agreements, with 
Australia, Japan, New Zealand, and India.  Sin ce the previous Trade Policy Review of Thailand, 
ASEAN has concluded trade agreements with India, Korea, Australia, New Zealand, and Japan while Thailand has not concluded an y new bilateral agreements. 
31. Thailand is also a participant in the Global Sy stem of Trade Preferences among Developing 
Countries (GSTP) and is participating in nego tiations on the Bay of Bengal Initiative on Multi-
Sectoral Technical and Economic Co-operation (BIMSTEC).
15 
  
                                                      
12 WTO documents G/AG/N/THA/55, 63, 67 and 71. 
13 According to the authorities, the unbound agriculture tariff line is:  HS 0505.90.10 (duck feathers);  
and the partially bound agriculture lines are HS 0102.10.00 (live bovine breeding animals), 0102.90.90 (Live 
bovine animals, other, other), 0207.13.00 (meat and edib le offal, of poultry of heading 01.05, fresh, chilled or 
frozen, cuts and offal, fresh or chilled), 0404.10.91 (whey,  fit for animal feeding, wh ey), 0404.10.99 (whey, fit 
for animal feeding, other), 0404.90.00 (whey, other), 0502.9 0.00 (pigs', hogs' or boars' bristles, badger hair and 
other brush-making hair, other), 0505.90.90 (feathers of a kind used for stuffing; down, other), 0506.90.00 
(bones, other), 0713.31.10 (beans ( Vigna mungo  (L) Heper or Vigna radiata  (L) Wilczek) suitable for sowing), 
0713.31.90 (beans ( Vigna mungo  (L) Heper or Vigna radiata  (L) Wilczek) other). 
14 For more details of preferential trade arrangements see Chapter II(5). 
15 WTO online database, "the Regional Trade Agreem ents Information System (RTA-IS)". Viewed at:  
http://www.wto.org/english/trat op_e/region_e/rta_participation_map_e.htm [May 2011]. Thailand WT/TPR/S/255 
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0 5 10 15 20 25 30 35 40 45 50
WTO agriculture
Animals & prod. thereof
Dairy products
Fruit, vegetables & plants
Coffee & tea
Cereals & preparations
Oil seeds, fats, oils & their prod.
Sugars & confectionary
Beverages, spirits & tobacco
Cotton
Other agricltural products
WTO non-agriculture
Fish & fishery products
Minerals & metals
Chemicals & photographic supplies
Wood, pulp, paper & furniture
Textiles
Clothing
Leather, footwear, travel goods
Non-electric machinery
Electric machinery
Transport equipment
Non-agriculture articles n.e.s.
PetroleumChart III.2
MFN applied tariff averages and dispersion by product groups, 2011
Product groups
(17.2)
(13.8)
(12.5)
(5.2)(10.0)
(11.6)(13.1)
(7.3)(12.1)
(9.6)
(5.0)(6.4)(19.5)
(14.8)
(6.0)
(6.2)(9.0)
(26.0)(10.1)(10.6)
(9.0)(3.1)(18.8)
(0.0)
Figures  in brackets correspond 
to the standard deviation
Source :   WTO Secretariat estimates, based on data provided by the authorities.Average (%)
 
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32. Under Thailand's bilateral free-trade agreem ents and under trade agreements between 
ASEAN and other countries, the degree of preferen ce over MFN tariffs depends on the agreement.  
For imports from other ASEAN countries, there are currently only a few exceptions to duty-free access to Thailand, with a 5% tariff on fresh cut fl owers, potatoes, non-roasted coffee, coffee husks, 
and copra.
16  In other agreements, both through ASEAN a nd bilaterally, Thailand has tended to retain 
protection for transport equipment, beverages and tobacco, vegetables, and footwear, while average 
tariffs, though less than the MFN averag e, remain significant (Table AIII.2). 
(iii) Other charges affecting imports 
33. Three products are subject to import surcharges, in some cases differentiating between 
imports from WTO members (and Laos) and from othe r countries.  One is charged zero: high grade 
fishmeal with a protein content of over 60% is cu rrently charged B 0.0 per tonne;  maize (corn) for 
animal feed is charged B 180 per tonne fo r out-of-tariff-quota quantities imported from WTO 
members and Laos;  and B 1,000 from other countries in  any quantities;  and soybean meal is charged 
B 2,519 per tonne from non-members of the WTO and not Laos.17 
(iv) Contingency measures 
(a) Safeguards 
34. The Ministry of Commerce is the government ag ency responsible for policy on contingency 
measures generally, including safeguards.  In August 2009, Thailand notified the Committee on Safeguards that the Safeguard Measures on Incre ased Imports Act B.E. 2550 (2007) had been 
enacted.
18  In responding to questions from one dele gation, Thailand noted that, in the event of 
conflict between the Agreement on Safeguards and the Act, WTO obligations would take 
precedence.19 
35. A Committee on Safeguard Measures has been established under the Act.  The Committee is 
made up of representatives from: the Ministries of Commerce, Finance, Foreign Affairs, Agriculture 
and Co-operatives, Industry and Labour;  the Offi ce of Consumer Protection Board;  and seven 
experts appointed by the Government.  The expert members of the Committee are required to 
represent each of the specific fields of internati onal trade, international economics, accounting and 
finance/fiscal, international trade laws, agri culture, industry and business administration. 
36. A safeguard investigation may be initiated follo wing a petition to the Department of Foreign 
Trade by a domestic producer of a like product.  The petition must include evidence supporting the claim of increased imports and injury to the domestic  industry.  The Department of Foreign Trade is 
then required to review the petition and the evidence and, if it is satisfied that the petition and 
evidence are complete and correct, it passes them to the Committee for a determination.  The 
                                                      
16 To be more precise:  HS 0603.11.00 Roses, 0603.12.00 Carnations, 0603.13.00 Orchids, 
0603.14.00 Chrysanthemums, 0603.19.00 Other; 0701 .10.00 Seed potatoes, 0701.90.00 Other potatoes;  
0901.11 Coffee, not roasted, not decaffeinated (0901.11.10 Arabica WIB or Robusta OIB, 0901.11.90 Other);  0901.12 Coffee, not roasted, decaffe inated (0901.12. 10 Arabica WIB or Robusta OIB, 0901.12. 90 Other);  
0901.90.10 Coffee husks and skins; 1203.00.00 Copra. 
17 Commerce Ministry notification No.74, B.E. 2533 (1990) on imports, identifies the three products 
subject to import surcharges under the Export and Import  Act, B.E. 2522 (1979);  the current rates are in a 
ministry notification issued in 1997. 
18 WTO document G/SG/N/1/THA/3, 27 August 2009. 
19 G/SG/Q1/THA/2. Thailand WT/TPR/S/255 
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Department of Foreign Trade may also submit a petition to the Committee on its own initiative, based 
on evidence of increased imports and injury to domestic industry. 
37. Following a determination by the Committee that there has been an increase in imports and 
injury to domestic industry, the Department of Fo reign Trade is required to investigate whether the 
imports caused the injury.  If the Committee deems it necessary, it may determine that a provisional 
safeguard be applied while an investigation tak es place and until it reaches a final determination, a 
process that can take no longer than 270 days fr om the date of starting the investigation. 
38. The Department of Foreign Trade notifies the initia tion of an investigation by publishing it in 
the Royal Gazette  and in the national press in English and Thai, as well as directly informing 
petitioners and other interested parties.  The Act re quires the Department to give importers, exporters, 
and other interested parties the opportunity to presen t their views and evidence.  At the end of the 
investigation, the Department is  required to present the results and an opinion to the Committee. 
39. The Committee's final determination may impo se a safeguard measure in the form of an 
additional duty, a quantitative restriction, or anot her measure to reduce the volume of imported goods 
so that the domestic producer(s) of the like produc t can implement an adjustment plan.  The maximum 
period for the safeguard measure is four years, extendable if necessary to a total of ten years. 
40. As of end-April 2011, Thailand had notified th e Committee on Safeguards that it had applied 
provisional safeguard duties to imports of glass blocks (HS 7016 9000) from 15 January 2011.20  
(b) Anti-dumping and countervailing measures 
41. The legislative basis for anti-dumping and count ervailing measures in Thailand is the Anti-
dumping and Subsidized Import Act, B.E. 2542 (1999).21  The Ministry of Commerce is the 
government agency responsible for policy and for conducting investigations while the Committee on 
Dumping and Subsidies is responsible for making provisional and final decisions. 
42. An anti-dumping or countervailing duty investig ation may be started on the initiative of the 
Committee or in response to a petition from the Depa rtment of Foreign Trade or from the domestic 
industry.  According to the authorities, no investig ation has yet been undertaken on the initiative of 
the Committee or the Department.  Once started, a claim is first examined by the Committee on 
Dumping and Subsidies, which determines whether th ere is sufficient evidence of dumping or subsidy 
and injury of a causal link between them to warrant an  investigation.  The clai m is then investigated 
by the Bureau of Trade Interest and Remedy in th e Department of Foreign Trade in the Ministry of 
Commerce. 
43. The start of an investigation is an nounced through its publication in the Royal Gazette  and 
local newspapers (in Thai and English).  In additi on, 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. The investigati on includes opportunities for third parties to make 
presentations.  The results of the investigation ar e submitted to the Committee, which is responsible 
for taking a final decision on whether to apply anti-dumping or countervailing duties and their 
amount.  Like the Committee on Safeguard Measures, the Committee on Dumping and Subsidies is 
                                                      
20 WTO documents G/SG/N/7/THA/1/Suppl.1;  G/SG/N/8/THA/1/Suppl.1;  and G/SG/N/11/THA/1/ 
Suppl.1, 28 January 2011. 
21 WTO documents G/ADP/N/1/THA/4 and G/SC M/N/1/THA/4, 20 December 1999;  and 
G/ADP/N/1/THA/4/Corr.1 and G/SCM/ N/1/THA/4/Corr.1, 18 July 2000. WT/TPR/S/255 Trade Policy Review 
Page 56 
  
made up of representatives of the relevant governme nt agencies and one expert each from the areas of 
international trade, economics, accounting,  law, agriculture, and industry.   
44. The Anti-dumping and Subsidized Import Act allo ws appeals to the Court of Intellectual 
Property and International Trade.  Since 1999, Comm ittee determinations have  been challenged four 
times, with eight on-going cases.  Of the cases comp leted by the Court, one is on appeal to the 
Supreme Court (as of end-June 2011), one was revers ed, one approved, and one  withdrawn.  Between 
1 January 2007 and 31 May 2011, Th ailand initiated six anti-dumping investigations, five of which 
involved imports from China and one involved imports  from Malaysia.  It has also reviewed and 
continued to apply anti-dumping duties in 19 cases and terminated them in five cases.  Steel products 
continue to be the main focus of anti-dumping meas ures (Table III.2) and China the main source of 
imports subject to anti-dumping measures and investigations. 
Table III.2 
Anti-dumping measures  
Country/ 
Customs 
Territory Product Initiation of 
original 
investigation Date of 
provisional 
measure Date of 
imposition 
final Date of 
extension Date of 
termination 
Algeria Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Argentina Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
China Citric acid 17-03-03 11-09-03 13-01-04 23-01-10  
 Glass block 19-07-06 05-04-07 06-08-07   
 H-sections 11-04-01 20-07-02 10-10-02 10-10-08  
 Sodium 
Tripolyphosphate 23-05-08 20-03-09 18-07-09   
 Woven fabrics 04-10-07 13-09-08 15-01-09   
 Ceramic flags and 
paving, hearth, wall 
tiles, mosaic cubes 03-12-09 none 02-06-11   
 Flat hot rolled 16-06-10 17-02-11    
Czech Republic Glass block 04-10-07 09-08-08 15-01-09   
EU Flat cold-rolled 
stainless steel 15-02-02 03-08-02 13-03-03  19-03-09 
India Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Indonesia Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
 Glass block 09-08-04 24-03-05 05-08-05  04-08-10 
Japan Flat cold-rolled 
stainless steel 15-02-02 03-08-02 13-03-03 19-03-09  
 Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Kazakhstan Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
 Cold rolled carbon 
steel sheet and strip in 
coils and cut to length 27-07-01 20-07-02 25-01-03  25-01-08 
Korea, Rep. of Flat cold-rolled 
stainless steel 15-02-02 03-08-02 13-03-03 19-03-09  
 Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Malaysia Cathode ray tubes 25-06-04  22-10-05  30-10-07 
 Flat hot rolled steel 16-06-10 17-02-11    
Romania Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Russian 
Federation Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
 Cold rolled carbon 
steel sheet and strip in 
coils and cut to length 27-07-01 20-07-02 25-05-03  25-01-08 
Slovak Republic Flat hot rolled stee l 08-07-02 18-11-02 27-05-03 23-05-09  
     Table III.2 (con'td) Thailand WT/TPR/S/255 
 Page 57 
 
 
Country/ 
Customs Territory Product Initiation of 
original 
investigation Date of 
provisional 
measure Date of 
imposition 
final Date of 
extension Date of 
termination 
South Africa Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Chinese Taipei Flat cold-rolled 
stainless steel 15-02-02 03-08-02 13-03-03 19-03-09  
 Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Ukraine Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Venezuela Flat hot rolled steel 08-07-02 18-11-02 27-05-03 23-05-09  
Note: Does not include cases that have been initiated only.  
Source: WTO notifications;  and the Thai authorities. 
45. Thailand has not notified the WTO Committee on Subsidies and Countervailing Measures of 
the initiation of any investigation or appl ication of any countervailing duty measures. 
(v) Non-tariff border measures 
(a) Import licensing and prohibitions 
46. Thailand's system of import restrictions i nvolving licensing and prohibitions remained 
generally unchanged during the review period.  Conditions attached to import licensing on various 
items tend to be complex and opaque, and in some c ases appear equivalent to quantitative restrictions 
(Table III.3).  A number of import restrictions are in force for economic purposes, including on several additional products made subject to import li censing or prohibition.  Infant industry protection 
has been the main objective behind import restrictions since the 1970s. 
Table III.3 
Products subject to import licensing and prohibition, 2011  
Commodity HS code Rationale Measures and condition 
Yellowfin tuna 0302.32 Environmental prot ection Import certificate required from 
the Department of Fishery  
 
Milk and cream 04.01,  2202.90 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
  
Milk and cream in powder 0402.10.0007 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
  
Potatoes  0701 Comply with market access 
commitment under the Agriculture Agreement Tariff quota 
  
 
Onion 0703.10.0119, 0712.20.0104, 
0712.20.0200 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
 
 
Garlic 0703.20.0007, 0712.90.0115, 
0712.90.0128 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
  
Coconut 0801.11.0000, 0801.19.0007 Comply with market access 
commitment under the Agriculture Agreement Tariff quota 
  
 
   Table III.3 (cont'd) 
 
 
 WT/TPR/S/255 Trade Policy Review 
Page 58 
  
Commodity HS code Rationale Measures and condition 
Dry longan 0813.4 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
  
Coffee 0901, 2101.10 Comply with market access 
commitment under the Agriculture Agreement Tariff quota 
  
 
Tea  09.02 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
 
 
Pepper 0904.11.0003, 0904.12.0004 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
  
Maize (corn) 1005.90 Comply with market access 
commitment under the Agriculture Agreement Tariff quota, import surcharge for 
non-WTO members  
 
Rice 1006.10, 1006.20, 1006.30, 
1006.40 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
 
 
Soyabeans 1201.001.000,  1201.009.001 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
 
 
Copra 1203.00.0005 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
  
Onion seeds 1209.91.0106 Comply with market access 
commitment under the Agriculture Agreement Tariff quota 
  
 
Soyabean oil and its fractions 1507.10.000 1, 1507.90.0006 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
 
 
Palm oil and its fractions 1511, 1513.210004, 
1513.29.0007 Comply with market access 
commitment under the 
Agriculture Agreement Tariff quota 
 
  
Coconut oil 1513.11.000 8, 1513.19.0005 Comply with market access 
commitment under the Agriculture Agreement Tariff quota  
  
 
Cane or beet sugar  1701 Comply with market access 
commitment under the Agriculture Agreement Tariff quota 
  
 
Fish-meal with protein 
content less than 60% 2301.200.106 Stabilize price of raw material 
used for animal food Non-automatic licensing: import 
not generally allowed 
 
Fish-meal with protein 
content more than 60% 2301.200.106 Stabilize price of raw material 
used for animal food Import surcharge 
 
 
Oil cake residues, from the 
extraction of soyabean oil 2304.00.0008 Stabilize price of raw material 
used as animal food Tariff quota, import surcharge for 
non-WTO members 
 
Marble (except marble block 
of 50x50x50 cm) 2515 Encourage and protect domestic 
industry Non-automatic licensing: import 
not generally allowed 
 
Gasoline 2710.001 Monitoring current fuel  price Automatic licensing, only for 
authorized importers 
 
   Table III.3 (cont'd) 
 Thailand WT/TPR/S/255 
 Page 59 
 
 
Commodity HS code Rationale Measures and condition 
    
Kerosene 2710.002 Monitoring current fuel price Automatic licensing, only for 
authorized importers  
High speed diesel oil 2710.003 Monitoring current  fuel price Automatic licensing, only for 
authorized importers  
Naphtha 2710.005, 2710.009  Monitoring current  fuel price Automatic licensing, only for 
authorized importers  
LPG gas 2711.120, 2711.130, 
2711.140, 2711.190 Monitoring domestic consumption Automatic licensing, only for 
authorized importers  
Potassium permanganate 2841.61 Public morals, drug suppression  Automatic licensing, only for 
registered importers  
Clenbuterol  2922.199 Public health  Non-automatic licensing: import 
is permitted with approval of the Food and Drug Administration 
 
Albuterol or Salbutamol 2922.509 Public health Non-automatic licensing: import 
permitted with approval of the 
Food and Drug Administration 
 
Caffeine  2939.30, 3003.40 Public health, social security Restriction, allowed only with 
certificate from the FDA, or 
other authority concerned 
 
Waste and scrap of plastics 3915 Environmental a nd public health Non-automatic licensing: with 
approval of the Department of 
Industrial Works  
Wood sawn or chipped 4403, 4407 — 4421 To facilitate international trade 
transaction Automatic licensing, certificate 
of origin, export certificate from exporting country 
 
Raw silk 5002 Accommodate to current situation, 
industry protection Tariff quota 
 
 
Silk yarn 5004 Accommodate current situation, 
industry protection Automatic licensing, with 
conditions set by Department of 
Foreign Trade 
 
Garments 61.01 to 61.14 61.17.90, 
62.01-62.11, 62.17.90 Compliance with ATC 
commitment until its expiry in 
2004 Automatic licensing 
 
  
Worked monumental or building stone 6802 Industry protection Non-automatic licensing: import 
not generally allowed  
Used motorcycle engines 8407.31, 8714.19, 72.04, 
76.02 Public health and safety  Absolutely prohibited  
Used diesel engines with 
displacement of 331-1,110cc. 8408.90 Public health and safety Non-automatic licensing: import 
not generally allowed 
Intaglio printing machinery 8443.500 To prevent making of counterfeit 
money Automatic licensing 
  
Chain saws 8467.81, 8467.91, 8508.20, 
8508.90 To prevent smuggling of logging, 
forest conservation Department of Foreign Trade 
authorizes the Department of Forestry to grant import permits 
 
Passenger cars (prototype) 8702.101, 870 2.901 Industry protection, foreign 
currency reservation Import not generally allowed, 
except as prototype for assembly 
or production 
 
   Table III.3 (cont'd) 
 WT/TPR/S/255 Trade Policy Review 
Page 60 
  
Commodity HS code Rationale Measures and condition 
Used motor vehicles 8703.21, 8703.229, 
8703.239, 8703.249, 
8703.319, 8703.329, 8703.339 Public health, environmental 
protection Non-automatic licensing: import 
not generally allowed, except for 
imports for re-export or import by individual 
 
Motor vehicles for the 
transport of 30 or more 
persons 8702.101, 8702.901 Industry protection, foreign 
currency reservation NAL: import not generally 
allowed, except as prototype for 
assembly or production 
 
Used motorcycles 8711 Public hea lth Import not generally allowed 
 
Colour photo-copying 
apparatus 9009.110, 9009.120 To prevent making of counterfeit 
money Automatic licensing 
 
 
Game machines, coin or disc 
operated 9504.30, 9504.901, 9504.909 Public moral Prohibited 
 
 
Original sculptures and 
statuary, in any materials 9703.009 To prevent smuggling of historical 
objects or antiques Non-automatic licensing: 
Department of Foreign Trade 
authorizes the Department of 
Fine Art to grant licences  
Used machines for multimedia production  To prevent the violation of 
intellectual property Non-automatic licensing 
  
CFC refrigerators   Public  health and environmental 
protection Import prohibited 
 
 
Glazed ceramic wares  Public health Non-automatic licensing: import 
allowed on case-by-case basis 
 
Gold  Economic security and stability Non-automatic licensing: 
Department of Foreign Trade 
authorizes the Department of Finance to grant licences 
 
Counterfeit products  To prevent import of imitation 
and counterfeit products Absolutely prohibited  
 
 
Medals, coins  To prevent making of counterfeit 
medals and coins Non-automatic licensing: import 
is allowed only by the Minister 
of Finance and other authorized 
entity   
Goods duplicating registered products  To prevent imports that violate 
registered product rights Absolutely prohibited  
  
Drug and pharmaceutical chemicals in 16 items, 154 categories (Aristolochia spp., Chloramphenicol, 
Chloroform, 
Chlorpromazine, Colchicin, Dapsone, Nitrofurans, 
Diethylstilbestrol, 
Sulfonamides, Fluoroquinolones, 
Glycopeptides, 
Dimetridazole, Metronidazole, Ronidazole, 
Ipronidazole, 
Nitroimidazoles)  Economic security, public health, 
to accommodate domestic production Automatic licensing, with import 
certificate from authorities concerned  
Source: Department of Foreign Trade online information.  Av ailable at:  http://www.dft.mo c.go.th/import_index.htm (in 
Thai only);  and information provided by the authorities. 
47. The legal authority for regulating imports is the Export and Import Act B.E. 2522 (1979).  
This gives the Minister of Commerce the power to  restrict imports with Cabinet's approval for Thailand WT/TPR/S/255 
 Page 61 
 
 
economic stability, public interest, public health, na tional 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-automatic li censing), they are allowed if specified conditions 
are satisfied.  Various other laws include import r estrictions.  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. 
Import licensing 
48. Products subject to non-automatic licensing curre ntly include the 24 agricultural items under 
tariff quota (section (ii)(f)) and processed goods (incl uding 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. 
unfinished garments, parts or components except co llars, 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. 
49. In September 2010, Thailand provided its third replies to the WTO Import Licensing 
Questionnaire.22  Thailand notified its licensing legislation as required under Articles 1.4(a) and 8.2(b) 
of the Import Licensing Agreement in 2007 (document G/LIC/N/1/THA/1).  
Import prohibitions  
50. In general, import prohibitions are used onl y to protect public morals, national security, 
human, animal, or plant life, health, and inte llectual property rights, in accordance with GATT 
Article XX exceptions.  Products that are abso lutely prohibited 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).23 
51. To prevent illegal logging, since 2005 the Depart ment of Foreign Trade has prohibited import 
of logs and sawn wood made of teak trees, rubber trees or forbidden trees from the border of Tak and 
Kanchanaburi provinces.  Bans (based on UN Reso lutions) on imports of di amonds, logs, and wooden 
products from Liberia were lifted in 2007, and on  diamonds from Sierra Leone in 2007 and 2003.  
Thailand accepts the Kimberly Certification Pro cess.  For SPS and TBT measures affecting imports 
see section (vi) below. 
(b) Import quotas 
52. According to the authorities, Thailand mainta ins no import quotas apart from its commitments 
under the Agreement on Agriculture (Table III.3).  
                                                      
22 Article 7.3 of the Agreement on Import Licensing Procedures requ ires all members to answer the 
Questionnaire on Import Licensing Pr ocedures by 30 September each y ear (See WTO documents G/LIC/16, 
13 November 2006, and G/LIC/N/3/THA/3, 30 September 2010). 
23 WTO (2008);  and Economist Intelligence Unit (2010), p. 92. WT/TPR/S/255 Trade Policy Review 
Page 62 
  
(vi) Technical measures 
(a) Technical barriers to trade 
53. Several bodies are responsible for different aspect s of technical regulations and standards in 
Thailand: 
 The Thai Industrial Standards Institute (T ISI), under the Ministry of Industry, is 
responsible for developing national standard s, certification, monitoring the quality of 
products (including food products) and services,  international cooperation (bilaterally 
and multilaterally), and establis hing a national single network on standardization.  The 
Institute was established in 1969 under the Industrial Pr oduct Standards Act BE 2511 
(1968);24 
 The National Bureau of Agricultural Commodity and Food Standards (ACFS), under the 
Ministry of Agriculture and Cooperatives, is r esponsible for developing food standards to 
protect consumers against health hazards  from food consumption, under the Food Act 
B.E. 2522 (1979);  accreditation of certification bodies;  international cooperation;  and 
food standards control;25 
 The Ministry of Commerce is responsible fo r policy 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 Science and Technology, 
which is responsible for implementation;26 and 
 The Office of the National Accreditation C ouncil of Thailand, the Department of 
Medical Service, the Department of Scien ce Service, and the ACFS are responsible for 
accreditation of organizations  for conformity assessment.   
54. The TISI is the designated inspection body fo r several countries with which Thailand has 
standards related agreements, includi ng Australia on automotive parts27;  as well as more general 
mutual recognition agreements in the Japan-Thaila nd Economic Partnership Ag reement, the Thailand-
Australia Free Trade Agreement, and the Tha iland-New Zealand Closer Economic Partnership 
Agreement.  It also has memoranda of understanding  with the Turkish Standards Institution, and the 
American national Standard Institute.28  The MoU with the Bureau of Indian Standards expired on 
10 April 2010.  Thailand is a member of the Intern ational Organization for Standardization (ISO), the 
International Electrotechnical Commission (IEC), and the International Telecommunications Union.  
It is also active in regional standards organizations  such as the Pacific Area Standards Congress, and 
the ASEAN Consultative Committee for Standards and Quality.    
55. Thailand is also a party to several plurilate ral mutual recognition agreements, such as the 
APEC Electrical and Electronic Equipment Mutual Recognition Agreement (Thailand is a participant 
in Part 1 to provide information on mandatory re quirements but not Part 2 on mutual acceptance of 
test reports)29, and the APEC-TEL MRA on conformity assessment of telecommunications 
                                                      
24 Viewed at:  http://www.tisi.go.th/eng/ [May 2011]. 
25 Viewed at:  http://www.acfs.go.th/eng/index.php [May 2011]. 
26 Viewed at: http://www.most.go.th/eng/index.php/ agencies-under-most/detail-nimt [May 2011]. 
27 WTO document G/TBT/10.7/N/22/Rev.1, 22 June 1999. 
28 Viewed at:  http://app.tisi.go.th/FTA/index.html#mra [May 2011]. 
29 Viewed at:  http://www.apec.org/Groups/Co mmittee-on-Trade-and-Investment/Sub-Committee-on-
Standards-and-Conformance/ap ec_eemra.aspx [May 2011]. Thailand WT/TPR/S/255 
 Page 63 
 
 
equipment.30  It has also signed the Pacific Accred itation Cooperation Multilateral Recognition 
Arrangement and IAF Multilateral Recognition Arrangement, the Asia Pacific Laboratory 
Accreditation Cooperation Multilate ral Recognition Arrangement, th e International Laboratory 
Accreditation Cooperation Multilate ral Recognition Arrangement, a nd the Asia Pacific Legal 
Metrology Forum Memorandum of Understanding.  
56. The WTO enquiry point for technical regulations relating to industrial products is the TISI, 
and for food and agricultural products it is the Na tional 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.31  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 protecti on.  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 th e 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.32 
57. As of 31 May 2011, the TISI had established a total of 2,979 Thai Industrial Standards of 
which 2,718 were not compulsory, 99 were compul sory, and 162 had been withdrawn.  Of the 99 
compulsory standards, over half are for constructi on materials or electrical/electronic equipment.  
Compliance with non-compulsory standards entitles th e manufacturer of the product to affix a label 
indicating that the product meets the appropriate standa rds.  Products subject to compulsory standards 
are required to comply with the standard and show the mandatory certification mark. 
58. In developing standards and technical regula tions, the TISI works with other government 
agencies and private-sector organisations.  The netw ork of agencies and organizations depends on the 
standard and may include:  the Department of Alte rnative Energy Development and Efficiency;  the 
Department of Industrial Works;  the Engineering Institute of Thailand;  the National Electronics and 
Computer Technology Center;  the Federation of Thai  Industries;  and other institutions with which 
the TISI has memoranda of understanding.  A te chnical committee, made up of the responsible 
national standards body and other interested parti es, develops a draft standard, which is then 
circulated for comment with final approva l by Industrial Products Standards Council.33  T h e  
comments of other countries are taken into acc ount through the WTO TBT Committee notification 
                                                      
30 Viewed at:  http://www.apec.org/en/Groups/SO M-Steering-Committee-on-E conomic-and-Technical-
Cooperation/Working-Groups/Telecommunications-and-Information/APEC_TEL-MRA.aspx [May 2011] 
31 WTO document G/TBT/CS/N/21, 22 November 1995. 
32 See WTO documents G/TBT/M/41 to 51. 
33 Sirilarpyos (2010). The Industrial Products Standa rds Council is chaired by  the Permanent Secretary 
for Industry and representatives from TISI, the Department of Industrial Works, the Department of Industrial 
Promotion, the Ministry of Agriculture and Cooperatives, the Ministry of Interior, the Ministry of Commerce, the Ministry of Sciences, Technology and Energy, the Ministry of Public Health, the Customs Department, 
Thailand Institute of Scientific and Technological Rese arch, the Office off the Boar d of Investment, the Office 
of the National Economic and Social Development Board and up to six qualified persons appointed by the Council of Ministers.   WT/TPR/S/255 Trade Policy Review 
Page 64 
  
and comment procedures.  The TISI's work progr amme, listing draft standards and the stage of 
development, is published bi annually and available online.34 
59. Producers and importers of products subject to  mandatory standards require a licence to 
indicate compliance with the standard and sell the product in Thailand.  Applications for an import 
licence, along with samples and a fee must be given to the TISI for assessment for conformity and of 
the quality control system.  A fee of  B 10,000 is charged for a licence to display the Standards Mark;  
to manufacture the product that must comply with th e standard;  or to import the product that must 
comply with the standard.  The process can take up to  42 days before a licence is delivered.  A similar 
process must be followed for licences to use quality  labels indicating compliance with voluntary 
standards.35  Manufacturers that have been awarded ISO 9000 certification may be exempted from 
assessment of their quality control system.36  However, the TISI may conduct additional assessments 
on items if the certified quality management system  differs from the particular requirements for 
product certification and the general requ irements for product quality control.37  
60. For export, the TISI maintains a list of organi zations certified as competent to provide export 
certificates and those accredited as competent to ce rtify quality systems (ISO 9000);  environmental 
management systems (ISO 14000), inspection services (ISO/IEC 17000), laboratories (ISO/IEC 
17025), and personnel and training registration. 
(b) Sanitary and phytosanitary measures 
61. As Thailand is a major exporter of agricultu ral and fisheries products, SPS issues are of 
serious concern.  For example, in 2006 exports of  chicken were sharply reduced following outbreaks 
of avian flu.  Due to measures taken by the Gove rnment, Thailand has had no further outbreaks of 
bird flu since 2008.   
62. Responsibility for sanitary and phytosanitary measures is divided between a number of 
government agencies: 
 The National Bureau of Agricultural Comm odity and Food Standards (ACFS) is 
responsible for setting standards for agricultu ral systems, commodity and food items and 
food safety;  for accreditation of certification bodi es;  for food standard controls;  and for 
promoting compliance with standards on farms and in food establishments;38 
 Animal health and imports of some anim al products are the responsibility of the 
Department of Liv estock Development,39 and the Department of Fisheries in the Ministry 
of Agriculture and Cooperatives;  
 Plant health is the responsibility of the Depa rtment of Agriculture in the Ministry of 
Agriculture and Cooperatives;  and  
 Food safety is the responsibility of the F ood and Drug Administration (FDA) of the 
Ministry of Public Health.   
                                                      
34 Viewed at:  http://203.154.78.183/work_prg/work_prg.html [May 2011]. 
35 TISI online information.  Viewed at:  http://app .tisi.go.th/license/diagram_c_e.html [May 2011]. 
36 WTO (2008). 
37 Criteria for product certification are available at :  http://www.tisi.go.th/eng/index.php?option=com_ 
content&view=article&id=39&Itemid=4 [May 2011]. 
38 ACFS online information.  Viewed at:  http://www.acfs.go.th/eng/index.php [March 2011]. 
39 WTO document G/SPS/N/THA/92 of 29 October 2002. Thailand WT/TPR/S/255 
 Page 65 
 
 
63. Thailand is an active participant in the SPS Co mmittee in the WTO, a member of the World 
Organisation for Animal Health (OIE), a contrac ting party to the International Plant Protection 
Convention (IPPC), and a member of the Codex A limentarius on food safety.  The WTO enquiry 
point and the notification authority is the Nati onal Bureau of Agricultural Commodity and Food 
Standards (ACFS).40  According to the 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 sometimes stricter than those established by OIE.41 
64. The FDA in Thailand is responsible for surve illance of food production and imports, pre- and 
post-marketing control, research, and labelling, as well as food safety.  New regulations are based on 
an analysis of the risk assessment, risk manageme nt, and risk communication.  Draft regulations are 
subject to a public hearing and are notified to th e SPS Committee in the WTO before being approved 
by the Food Committee on the FDA, which includ es consumer and industry representatives.  The 
regulations must be endorsed by the Minister of Public Health before becoming effective.42 
65. In the period 1 January 2007 to end-April 2011, Thailand made 42 regular notifications to the 
WTO Committee on Sanitary and Phytosanitary Measures (including revisions), and 14 emergency 
notifications along with 28 addenda  and corrigenda.  Most of the em ergency notifications referred to 
announcements of disease outbreaks or contaminated food in other countries.43  
66. There have been no changes to Thailand's legi slative 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 registra tion, labelling, and obligatory standards:44 
 Group 1 for Specifically Controlled Foods is fo r food products that require registration 
and must meet specifications set by th e FDA as well as packaging and labelling 
requirements.  Group 1 covers 14 food products, mainly dairy products; 
 Group 2 is Standardized Foods that are require d to abide by specific standards relating to 
quality but where no registration is required.   This group covers 30 food products 
including edible oils, food supplements , tea, coffee, conserves, and seasoning; 
 Group 3 is for Labelled Foods that are consider ed to be of lower risk than those in 
Groups 1 and 2 and, therefore, must carry la bels for consumer information rather than 
meet specific quality/food safety standards.   Group 3 covers 12 food products including, 
bread, meat products, flavourings, and ready to eat/cook foods;  and  
 Group 4 is for General Foods that are not in  Groups 1 to 3.  Registration for production 
or imports is not required but such foods mu st still meet, and are monitored for, specific 
hygiene, safety, labelling, and marketing requirements.45 
                                                      
40 WTO SPS Information Management System.  Viewed  at:  http://spsims.wto. org/ [March 2011]. 
41 USDA Foreign Agriculture Service (2010a). 
42 Presentation by Dr Parinyasiri, T (2010), Thai FDA Regulation on Food.  Viewed at:  
http://www.anchanthailand.com/asp /view_doc.asp?DocCID=2599. 
43 WTO online information, "SPS Informati on Management System ".  Viewed at:  
http://www.wto.org/english/tr atop_e/sps_e/sps_e.htm 
44 An unofficial translation into English is available from the Ministry of Public Health.  Viewed at:  
http://www2.fda.moph.go.th/exporters /frm_fd_eng.asp [March 2011]. 
45 USDA Foreign Agriculture Service (2010a). WT/TPR/S/255 Trade Policy Review 
Page 66 
  
67. Thailand prohibits imports of several food pr oducts on health grounds.  The list includes 
foods containing several additives, including some sw eeteners, along with puffer fish, and some types 
of genetically modified maize.   
68. All importers and manufacturers of food prod ucts must obtain a licence from the Food 
Control Division of the FDA, which must be re newed every three years.  If all documentation 
supporting the application is correct, the process ta kes about 7 working days for import licences and 
20-60 working days for manufacturing licences.  Te mporary import licences may be obtained for 
occasional imports of products that are not going to be  sold, such as for trade shows.  In addition to 
the import/manufacturing licence, product registrati on is required for products in Group 1, and 
product notification for products in Groups 2 and 3.  If all documenta tion supporting the application is 
correct, the approval procedures take about 35-90 working days for products in Group 1, and 2-
3 working days for products in the other two gr oups (except for dietary supplements and some 
beverages, which take 15-30 working days). 
69. Certain food products, whether imported or domestically produced, must comply with the 
Code of Good Manufacturing Practice (GMP) (since July 2003) set out in Ministerial Notification 
No. 193, BE 2543 (2000) Re: Production Processes,  Production Equipments, and Foods Storages.46  
The 57 products on the list include infant food, sever al dairy products, edible oils, tea, coffee, and 
food products of animal origin.  Importers are re quired to show a certifi cate, from the responsible 
government agency or another institution recogn ized by an international accreditation agency, 
indicating that production standards are equivalent to Thailand's GMP Code, such as a code of good 
practice based on guidelines from C odex Alimentarius or ISO 9000. 
70. The FDA is also responsible for control of food products after production, and import 
registrations and licences have been awarded th rough compliance monitoring and food surveillance.  
Compliance monitoring is through inspections of f actories and other premises where food is stored, 
and sampling and testing of food products.  The Food Analysis Division of the Department of Medical 
Science in the Ministry of Public Health is r esponsible for the analysis of food products to assess 
conformity with standards.  The FDA is also in volved in surveillance of food products in retail 
markets where samples  are delivered to the Food Analysis Division for analysis.    
71. All food products for public consumption must  carry a label in Thai providing basic 
information on the product.  For Specifically Cont rolled Foods, the label must be approved by the 
FDA before it is used.  All labels must comply with Ministerial Notificati on on Labelling No. 194 BE 
2543 (2000).  In addition, food products claiming to  have nutritional benefits and some snack food 
products are required to carry a la bel with information on nutrition.47  Labelling declaring "containing 
GMO" is also required for products containi ng more than 5% ingredients derived from GMO 
products. 
72. Imports of chilled or frozen meat must have  an import permit from the Department of 
Livestock Development in the Ministry of Agricu lture and Cooperatives and a health certificate from 
the country of origin.  Upon arrival, each consi gnment of chilled and frozen meat must be inspected 
by the Animal Quarantine Station at the port of entry.  Import fees for disinfection, sampling and inspection are B 10 per kg for poultry meat and B 5 per kg for other meats. 
73. In January 2005, the import prohibition on m eat and other products from bovine animals in 
countries that had recorded cases of BSE was replaced by a prohibition on imports of beef from 
                                                      
46 An unofficial translation into English is available from the Ministry of Public Health.  Viewed at:  
http://www.fda.moph.go.th/en g/eng_food/foodnotifica tion.htm [March 2011]. 
47 Ministerial Notification No. 182 of BE 2541 and Ministerial Notification No. 219 of BE 2544. Thailand WT/TPR/S/255 
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animals over 30 months old from these countries.48  According to the authorities, deboned meat from 
cattle under 30 months old from the United States, Canada, Japan, and the Netherlands may be 
exported to Thailand provided bilate ral negotiations and a risk assessment have been completed.  It 
was also reported that, in January 2010, Thailand lifted its ban on imports of pork and pork products 
that had been put in place because of  concerns about the H1N1 virus.49 
74. Plants and plant products are divided into three categories:  prohibited;  restricted;  and non-
prohibited with different import procedures applying to each.50 
 All imports of plants and plant product s must be accompanied by a phytosanitary 
certificate from the comp etent authorities in the exporting country; 
 An import permit is also required for prohib ited articles and the plant quarantine officer 
must be notified when the consignment arrives at the port of entry;  
 Imports of prohibited or restricted articles must be made through the plant quarantine 
station for inspection by the plant quarantine official;  and 
 A pest risk analysis is also required for imports of prohibited articles. 
(3) MEASURES DIRECTLY AFFECTING EXPORTS  
(i) Registration and documentation procedures 
75. As a general rule, there are no registration requi rements for exporters.  However, exports of a 
few products (mainly agricultural products, such as fresh longan, durian, apple juice, and orchids) 
require registration with the Department of Agricultu re to ensure export quality and food safety;  in 
most instances registration is required to meet the importing country's requirements.  
76. Under the Customs Act B.E. 2469 (1926), all goods being exported or re-exported from 
Thailand are subject to Customs control and approval .  Most export declarations are submitted via the 
e-Export system.  In addition to export declaration data, the following documents must be submitted:  
invoice, packing list, export licences (if applicable),  certificates of origin (if applicable), and other 
relevant documents such as catalogues, descriptions  of products, ingredients, etc.  Once the export 
declaration has been transmitted to the Customs computer system, it is subject to automatic 
processing, including data validation, data matc hing, and release status, as appropriate.  Where 
applicable, export duties and taxes may be paid e ither through the e-Payment system or at banks. 
(ii) Export taxes, charges, and levies 
77. Under the Customs 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 silk and silk yarn, and cer tain fish (Table III.4).  Export duties consist of 
statutory rates and applied rates;  applied rates involve both specific and ad valorem  duties.  In 
                                                      
48 WTO document G/SPS/N/THA/140, 8 February 2006. 
49 USTR (2010b). 
50 Under the Plant Quarantine Act BE 2507 (1964), as amended by Act 2542 (1999) and Act 2551 
(2008), and the Notification of Department of Agricultu re Re:  Criteria, Procedures and Conditions for the 
Importation or Bringing in Transit of Prohibited, Restrict ed and Unprohibited Articles, BE 2551 (2008). For an 
unofficial translation into English of the consolidated Plant Quarantine Act, see:  http://faolex.fao.org/faolex/ 
[March 2011]. WT/TPR/S/255 Trade Policy Review 
Page 68 
  
January 2011, specific export duties were levied on ce rtain 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 statutory rates, the persistenc e 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 st atutory rate.  Furthermor e, the imposition of export 
taxes could constitute a form of assistance to do mestic downstream industries and, if they were 
applied to products Thailand is a major supplier of, could exacerbate world price fluctuations.  The 
VAT rate on exports is zero.  
Table III.4  
Export duties, January 2011 
(Baht and %) 
Commodity Applied rate Statutory rate 
Hides of bovine animals   
   Raw hides Zero B 5 per kg 
   Other   
       Parings, waste, and dust for use in  the production of leather B 0.4 per kg B 4 per kg 
      Tanned hides 
       Other Zero 
B 4 per kg B 4 per kg 
Wood, sawn wood, and articles made of wood   
   Wood and sawn wood   
       Phai ruak (bamboo)  and coconut wood 5% 40% 
       Veneer 10% 40% 
       Other (except rubber wood, eucalyptus, wattle, etc.) 40% 40% 
   Articles of wood   
       Unsuitable for other conversion  Zero 10% 
       Other Zero 20% 
Rice Zero 10% 
Metal scraps Zero 50% 
Rubber Zero 40% 
Raw silk and silk yarn Zero B 100 per kg 
Fish, pulverized or only baked, unfit for human consumption Zero 75% 
Source:  Customs Department online information.  Viewed at:  http://igtf.customs.go.th/igtf/en/main-frame.jsp 
 [1 February 2011];  and data provided by the Thai authorities.  
(iii) Export prohibitions, restrictions and licensing 
78. Under the Export and Import of Goods Act B.E. 2522 (1979), the Minister of Commerce, 
with the approval of the Cabinet, has the authorit y to specify classes of goods that are subject to 
export (and import) controls in order to safeguard  economic stability, public health, national security, 
public order and morals, or "other  benefits to the State".  The Minister of Commerce is also 
empowered to control exports, mainly food staples, in  order to prevent domestic shortages.  Controls 
may involve export licensing, export surcharges, export quotas or outright prohibitions (Table III.5).   
79. Exports of rice and sugar require an expor t licence under the Export Standards Act No. 2 
B.E. 2522 (1979), administered by the Commodities Standards Office of the Ministry of Commerce, 
with the purpose of ensuring that these goods comply with set quality standards when being exported 
from Thailand.  Other items require export licences unde r different laws enforced by other Ministries 
and governmental agencies51, mainly for safety, public health, narcotic drug control, protection of 
national resources and treasures, and financial secur ity purposes.  Membership in the relevant trade 
association may be required to obtain an export li cence for certain agricultural goods.  Exports of 
certain goods destined to the EU, such as textiles and clothing and some agricultural products require 
export licences or certificates.  In accordance with  the Kimberly Process Scheme, exports of rough 
                                                      
51 In addition to the Ministry of Commerce, other Ministries exercising export controls include:  
Agriculture, Defence, Finance, Industry, Public Health, and Science and Technology. Thailand WT/TPR/S/255 
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diamonds require an export certificate from the Depa rtment of Foreign Trade before exportation from 
Thailand.   
80. In general, export prohibiti ons and export quotas are imposed to comply with Thailand's 
international obligations for envi ronmental, public health and inte llectual property reasons, or to 
comply with bilateral agreement provisions (Tab le III.5).  Thailand prohibits the exportation of 
counterfeit products and products that  infringe copyrights.  Exports of natural sand are prohibited in 
order to preserve national resources.  Export prohib itions are imposed on all types of arms, military 
vehicles, and related hardware and spare parts to certain countries in complia nce with the relevant 
United Nations resolutions.  The authorities have indicated that the export licensing and quota 
allocation system applied on exports of automobil es to Chinese Taipei was terminated during the 
period under review.   
81. Since its last Review, Thailand has eliminat ed export licensing on live horses, mules, and 
donkeys.  In addition, the Ministry of Commerce abolished an automatic export licensing procedure 
for fuel oil and products thereof.52  No significant changes have taken place in Thailand's export 
regime since 2007.  Export licensing requirement s on rice, elephants, and timber have been 
maintained for economic security reasons, and fo r the conservation of elephants and forest 
resources.53 
82. Under Thailand's foreign exchange  regulations, export proceeds equivalent to an amount of 
US$50,000 or above must be received in Thaila nd immediately upon payment and within 360 days 
from the date of exportation.  The proceeds must be  converted into Thai currency or deposited in a 
foreign currency account with an authorized ba nk in Thailand within 360 days of receipt.54 
Table III.5  
Products subject to export licensing, registration require ments or prohibitions, 2011  
Commodity HS Rationale Measures and condition 
Agriculture products    
Elephants 0106 Animal preservation NAL, with approval from 
Department of National Parks, Wildlife, and Plants 
Ornamental fish (in 
317 species) 0301.10 Animal preservation NAL, with approval from 
Department of Fisheries 
Live black tiger shrimp 0306 Prevent dome stic shortages Automatic licensing, with 
certificate from Department of 
Fisheries 
Crustaceans (shrimp and 
octopus) frozen or chilled 0306, 0307, 1605, 
1902 Requirement of importing nation (only 
exports to the U.S. and EU) Exporter must be member of Thai 
Frozen Food Association 
Pearl shell and its products 0307 Encourage local fa rming industries NAL, with export certificate from 
Department of Fisheries 
Fresh orchids for export to 
the EU 0603.10 According to bilateral agreement Exporter must be registered with 
Department of Agriculture;  and 
phytosanitary certificate required 
    
Durian 0810.90 Regulate the export system Automatic licensing, exporters 
must be registered with Department of Agriculture 
   Table III.5 (cont'd) 
 
                                                      
52 APEC (2010), Chapter 2 (Non-Tariff Measures). 
53 Ministry of Commerce Notification on Exports of Rice, Elephants and Timber B.E. 2549 (2006). 
54 Bank of Thailand online information.  Viewed at:  http://www.bot.or.th/English/Foreign 
ExchangeRegulations/FXRegulation/Pages/ExchangeControlLaw.aspx [2 February 2011]. WT/TPR/S/255 Trade Policy Review 
Page 70 
  
Commodity HS Rationale Measures and condition 
Longans  0810.90 Regulate the export system  Exporter must be registered with 
Department of Agriculture, 
Ministry of Agriculture 
Coffee 0901, 2101.10 Compliance with International Coffee 
Agreement Automatic licensing 
Rice 1006.10, 1006.20 
1006.30, 1006.40 Prevention of domestic shortages, export 
control  Automatic licensing, with 
certificate from Department of 
Foreign Trade 
Rice exported to the EU 
under tariff quota 1006.20, 1006.30, 
1006.40 Comply with the Agreement between 
Thailand and the EU Automatic licensing, export quota 
(EU) 
Cassava starches 1108.14 Regulate the export system and comply 
with the Agreement between Thailand and the EU Automatic licensing, with 
certificate from Department of Foreign Trade 
Tuna in airtight containers 1604.14 Regulate the e xport system Exporter must be member of Thai 
Food Processors Association 
Sugar 1701 Monitor exports Automatic licensing, exporters 
must be registered with Ministry of 
Industry 
Canned pineapple and 
concentrated pineapple 
juice 2008.20, 2009.40  Regulate the export system Exporter must be a member of 
Thai Food Processors Association,  
or Thai Pineapple Industry 
Oil cake and other solid 
residue, resulting from 
extraction of ground-nut oil 2304, 2305 Prevent domestic shortages Export is generally not allowed 
Oil cake and other solid 
residue, resulting from 
extraction of soybean oil 2304.00.0008 Prevent domestic shortages Export is generally not allowed 
Non-agriculture products    
Potassium permanganate 2841.61  Public moral, prev ention of narcotics Automatic licensing:  only with 
approval from Office of the Narcotic Control Board 
Caffeine and its salt 2939.30, 3003.40 Public h ealth Automatic licensing:  only with 
approval from FDA or Department of Industrial Works 
Wood, sawn or chipped 4401, 4403, 4404, 
4406, 4407 Forest conservation and prevention of  
domestic shortages Export is generally not allowed, 
except pines and eucalyptus with approval from Director-General of 
Royal Forest Department 
Wood charcoal 4402 Forest conservation NAL:  with approval from Royal 
Forest Department 
Rubber woods 4403, 4404, 4406, 
4407 Prevent domestic shortage Automatic licensing 
Rough diamonds 7102.10, 7102.21, 
7102.31 Comply with the UN resolution (subject 
to the export certification issued by the 
DFT under the Kimberly Process Scheme) Automatic licensing, with export 
certificate from the Department of 
Foreign Trade 
Non-categorized HS numbers    
All types of arms, military 
vehicles, hardware and spare parts to Sierra Leone, 
Ethiopia, Eritrea, Liberia, 
Somalia, and Congo   Comply with the UN Resolution Prohibited 
Antique idols, graven 
images  Protect national treasures of artistic, 
historic or archaeological value Automatic licensing, with export 
certificate from Department of 
Fine Arts 
Buddha images  To protect national treasures of artistic, 
historic, and archaeological value  Automatic licensing, with export 
certificate from Department of 
Fine Arts 
   Table III.5 (cont'd) Thailand WT/TPR/S/255 
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Commodity HS Rationale Measures and condition 
Coal  Conserve exhaustible natural re sources NAL, allowed only for re-export,  
or coal imported to produce for 
exports;  export certificate from the Department of Alternative Energy 
Development and Efficiency, 
Ministry of Energy  
Counterfeit products  Prevent production of counterfeit 
products Prohibited 
Gold  Economy security and st ability Automatic licensing, with 
conditions set by Ministry of 
Finance 
Goods duplicated from 
copyright products  Prevent exports of imitation products Prohibited 
Natural sand  Conserve exhaustible national resources Prohibited 
    
Silica sand or quartz sand  Conserve exhaustible national resources Department of Foreign Trade 
authorizes the Department of 
Mineral Resources to grant licences 
Textiles   Export items to the EU as from 2005  Bilateral agreement provisions 
Note: NAL = Non-automatic licensing. 
Source:   Information provided by the authorities.  
(iv) Export assistance and incentives 
83. In November 2007, Thailand informed the WT O SCM Committee that all export subsidies 
had been terminated under the programmes for wh ich it had been granted an extension of the 
transition period for the elimination of export subsidies.55  Export subsidies under the Export Market 
Diversification Promotion Programme were term inated on 31 December 2003;  export requirements 
for export processing zones under the Industrial Estate Authority of Thailand (IEAT) were phased-out 
on 1 January 200356, and the export subsidies of the last four investment projects under the Board of 
Investment (BOI) Programme were discontinued in 2006.57  
84. Thailand maintains several schemes to promot e and facilitate exports, including bonded 
warehouses, duty drawback, and other provisions allo wing for duty and tax ref unds, as well as tax and 
non-tax privileges under the Industrial Estate Authority  of Thailand Act (No. 4) B.E. 2550 (2007) and 
the Customs Free Zones scheme.   
85. Goods may be imported into a bonded warehou se without payment of import and export 
duties and taxes if they are to be used as inputs in a production process for export or are themselves 
re-exported.  The Customs Act provides for se veral types of bonded warehouses;  in the 
manufacturing-type bonded warehouse, imported goods must be stored and used within two years 
form the date of importation.58  If imported goods are removed from the bonded warehouse for 
domestic consumption, they are subject to the applicable import duties and taxes.      
                                                      
55 WTO document G/SCM/N/155/THA, 12 November 2007. 
56 WTO documents G/SCM/N/123/THA and G/SCM/N/128/THA, 23 June 2005. 
57 WTO document G/SCM/N/155/THA, 12 November 2007. 
58 In a bonded warehouse for vessel repair and cons truction, materials, parts, and accessories may be 
stored for a three-year period after import;  in a bonded warehouse for oil storage, petroleum may be stored for a 
period not exceeding six months;  in the duty-free shop and storage of duty-free goods type bonded warehouse, goods may be stored for a two-year period from the date of importation, which may be extended if necessary;  WT/TPR/S/255 Trade Policy Review 
Page 72 
  
86. A duty drawback scheme is provided under Section 19 bis of the Customs Act (No. 9) B.E. 
2482 (1939), under which exporters may obtain a refund of import duties paid on imported raw 
materials that are used in the production, mixing, assembling or packing of goods a nd exported within 
one year.  Claims for drawback must be made within  six months from the date of export.  Machinery, 
tools, moulds, and fuels for manufacturing are not eligible for duty drawback.  The auhtorities have 
indicated that duty refunds under this sceheme we re equivalent to US $273.5 million in 2007, 
US$372.7 million in 2008, US$438.4 million in  2009, and US$420.7 million in 2010.  
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 comp ensation for exports is set as a fixed percentage of 
the f.o.b. value and is calculated on both the pr oportion 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, the compensation rate is regularly adjusted to reflect changes in the 
input/output ratio and the tariff rates on inputs.  It ems that are not eligible for tax coupons include 
minerals, goods subject to export duties or fees, good s exported as samples, and other goods declared 
as not eligible by the Committee for Tax and Duty Compensation of Exported Goods Produced in the 
Kingdom.  According to the authorities, this progra mme aims to facilitate tax compensation, and the 
compensation provided must comply with the criteri a and conditions prescribed in the 1981 Act.  The 
authorities also indicated that compensation rates ranged from 0.01% to 3.86% in 2009.   
88. The Industrial Estate Authority of Thaila nd (IEAT) Act B.E. 2522 (1979) was amended and 
re-enacted as the Industrial Estate Aut hority of Thailand (No. 4) B.E. 2550 (2007).
59  Under the 2007 
Act, an I-EA-T Privilege scheme has been estab lished, according to which industrial estates are 
divided into two zones:  the General Industrial Zone, and the I-EA-T Free Zone, in lieu of the 
previous Export Processing Zone regime. 
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, an d raw materials necessary for the production of 
goods or for commercial purposes, as well 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 own land for th eir business operations, bring in foreign technicians 
and experts and their dependants, permission to remi t 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 ot her control except for those under the Customs Act.
60  
The 2007 IEAT Act provides tax burden relief for goods  from the I-EA-T Free Zon es sold to the local 
market;  the raw materials and components are en titled to tax and duty exemptions if they are 
produced locally.61   
                                                                                                                                                                     
and in the general-type bonded warehouse, goods may be stored for two years from the date of importation, 
extendable for up to one year if necessary (e.g. in the case of  "force majeure" or when the importer faces 
economic problems that cause delays).  For the criteria and conditions for the bonded warehouse schemes see Customs online information.  Viewed at:  http://www.customs.go.th/Customs-
Eng/Bonded/Bonded.jsp?menuNme=FreeZone. 
59 WTO document G/SCM/N/186/THA, 12 November 2009. 
60 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]. 
61 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]. Thailand WT/TPR/S/255 
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90. Exports from Thailand's I-EA-T Free Zones totalled B 246 billion in 2010, amounting to 
6.3% of total merchandise exports (5.2% in 2007).62  The main exports were electronic and electrical 
equipment, machines and parts, and motor vehicles (Table III.6). 
Table III.6 
The top 10 export products from the I-EA-T free zones, 2010 
N° Type of industries Export value 
(million Baht) 
1 Electronic equipment 58,319.391 
2 Machines and parts 56,748.734 
3 Motor vehicles 35,535.594 
4 Electrical equipment 18,574.960 
5 Rubber and plastic 11,867.421 
6 Laboratory instruments 6,979.477 
7 Chemical 6,192.656 
8 Cosmetic 5,825.014 
9 Oil 5,525.290 
10 Steel 5,275.040 
Source: Information provided by the authorities. 
91. The free zones (FZ) programme, introduced by the Customs Department in 2000 to promote 
investment in and exports from these zones, is still in force.  Goods imported and move into an FZ for 
industrial or commercial operations are eligible for exemption from import duties, VAT, and excise 
tax as well as from export duties on re-exports, duty on waste and scrap, and yield loss, and standard 
and quality control requirements;  they may also  qualify for export tax refund/exemption schemes.63  
At present, there are 62 free zones in Thailand. 
(v) Export financing and insurance 
92. The state-owned Export-Import Bank of Tha iland (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 Thai land's commercial base.  Its facilities include 
working capital loans64, term loans, financing for overseas projects, export credit insurance, 
buyers/bank risk assessment, buyer's  credit, and export insurance.65  According to the authorities, the 
EXIM Bank holds approximately 1% of the expor t financing market and operates in a very 
competitive environment with commercial banks.  Si nce 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.  
93. The EXIM Bank provides short-, medium-, and long-term credits, in Thailand and overseas, 
and in local or foreign currency.  Export credit is  offered pre- or post-shipment.  The term of 
financing is determined by product type:  for pr e-shipment financing, it does not normally exceed 
120 days, while term loans are available from 2 to 7 years.  Under the EXIM Bank of Thailand Act 
B.E. 2536 (1993), any severe loss incurred by th e Bank from export credit-insurance or business 
                                                      
62 Information provided by the Industrial Estate Au thority of Thailand.  See also Industrial Estate 
Authority of Thailand (2009). 
63 For additional information on the FZ regime see Customs Department online information.  Viewed  
at:  http://www.customsclinic.org/index.php?option=com_content&view=article&id=155&Itemid=202&lang 
=en. 
64 Working capital financing includes a broad range of facilities such as pre-shipment financing, 
express export credit, pre-shipment financing for small-  and medium-sized enterprises, export supplier's credit, 
and packing credit, plus export-credit insurance.   
65 For terms and eligibility for these programmes s ee EXIM Bank online information. Viewed at:  
http://www.exim.go.th. WT/TPR/S/255 Trade Policy Review 
Page 74 
  
operations carried out in compliance with governme nt policies or cabinet resolutions are to be 
compensated by the Ministry of Finance through the allocation of funds from the Government's annual budget.
66  The authorities have indicated that compensation would cover only severe losses 
from specific operations approved by the Government, and that this has never happened.  The EXIM 
Bank is under the supervision of the Ministry of Finance. 
94. The EXIM Bank offers several types of expo rt-credit insurance covering commercial and 
political risks (not exchange rate fluctuations).  It  is the only financial institution providing short-term 
insurance.  In February 2008, the Bank introdu ced its Exim Flexi export-credit insurance, which 
offers reduced premiums and faster approval, and covers up to 90% of loss realized.  In addition, in 
March 2009, the Bank launched the EXIM 4 SMEs , an export-credit insurance scheme with 
discounted premium rates for small and medium-s ized enterprises with export sales not exceeding 
B 100 million a year.  In September 2009, the EXIM  Bank joined in a Port folio Guarantee Scheme 
with the Small Business Credit Guarantee Corpora tion (SBCG) to provide guarantees against non-
performing loans (NPLs).  Under this scheme, the EXIM Bank is able to expand its credits to SME 
exporters, with a required collateralized amount not exceeding 30% of the credit line.67  An export 
credit facility plus premium-fee credit-insurance is available for exporters of  goods destined for the 
ASEAN market and to China, Japan, Republic of  Korea, India, Australia, and New Zealand.68  
95. The EXIM Bank used to operate the Merchant Marine Financing scheme to provide credit to 
merchant marine businesses to buy or renovate sh ips.  The programme, notified to the WTO SCM 
Committee69, was terminated in 2008.  
96. At end 2010, on aggregate the EXIM Bank had approved B 159.4 billion in loans and 
B 18.3 billion in export credit insurance and investme nt insurance.  The outstanding loans as of year-
end 2010 amounted to B 56.5 billio n and export credit insurance and investment insurance to B 
33.3 billion.  The Bank made a net profit of B 145 million in 2010, and its total assets were B 
67.9 billion.70  During the review period, the Bank con tinued to expand its domestic and overseas 
networks with other financial ins titutions with the aim of promoting Thai exports and investments. 
(4) OTHER MEASURES AFFECTING INVESTMENT AND TRADE  
(i) Taxation 
97. In 2009/10 taxes represented about 79%, or B 1,614 billion, of total government revenue.  
The Revenue Code sets out most of the legal provi sions covering tax in Th ailand with the Revenue 
Department responsible for implementing the law and collecting tax in most cases.  The main 
exceptions are excise tax collected  by the Excise Department, cu stoms duties collected by the 
Customs Department, and local taxes collected by th e local administrative organizations.  The Fiscal 
Policy Office in the Ministry of Finance is respons ible for policy.  In 2001, the Revenue Department 
began the introduction of the e-Revenue, and taxpa yers can now process their returns and make 
payments on-line.71 
                                                      
66 Section 23 and section 24 of the EXIM Bank of Thailand Act B.E. 2536 (1993). 
67 EXIM Bank of Thailand (2009). 
68 For terms and conditions for this facility see EXIM Bank online information.  Viewed at:  
http://www.exim.go.th/en/services/asianPlus6.aspx. 
69 WTO document G/SCM/N/155/THA, 12 November 2007. 
70 Information provided by the EXIM Bank.  See also EXIM Bank of Thailand (2009). 
71 Revenue Department (2010). Thailand WT/TPR/S/255 
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(a) Direct taxes 
98. Direct taxes on personal and corporate income re present around 42% (Table III.7) of total tax 
revenue.   
99. Personal income tax in Thailand is  levied on individuals, ordina ry partnerships, or undivided 
estates and is charged on regular income, includi ng dividends, interest on deposits in banks in 
Thailand, shares of profit, gains from transferring sh ares, rents, contracts, etc.  A wide range of 
deductions and allowances is permitte d, and the income tax rate is applied progressively with a top 
rate of 37% on annual incomes (net of deductions  and allowances) over B 4 million.  Income from 
dividends and interest payments from government bonds  or financial institutions that are specified by 
law for lending to promote agriculture, commerce or industry, may be excluded from the calculation 
of income tax, provided a withholding tax is paid at source.72 
100. Corporate income tax is levied on Thai companies on their worldwide net profits and on 
foreign companies, with some exceptions, on net profits from business in Thailand.  A number of exceptional allowances are applied in calculating taxable profit, including 200% of expenses on 
research and development, job training, and equipm ent for disabled persons.  In addition, initial 
capital allowances of 40% are applied to machin ery and computers for small and medium-sized 
enterprises.  The rate of tax varies from 10% to 30%  depending on the size of the company, whether it 
is listed on the stock exchange or the Market for Alternative Investment.
73  Net profits from petroleum 
operations are taxed at 50%. 
Table III.7 
Central government tax reven ue by source, 2005/06-09/10 
(B million) 
 2005/06 2006/07 2007/08 2008/09 2009/10a
Total tax revenue 1,317,277 1,374,438 1,493,384 1,370,973 1,613,942 
Taxes on income and profit 576,667  614,883 712,742 638,396 682,860 
Payable by individuals 159,347 177,205 187,471 177,896 187,687 
Payable by corporations and other ente rprises 417,321 437,678 525,271 460,500 495,173 
Taxes on goods and services 633,065 659,708 674,131 645,395 826,756 
General taxes on goods and services 310,078 288,073 332,392 277,242  346,874 
Value-added taxes 279,566 288,073 332,392 277,242  346,874 
Sales Tax 30,512     
Excise tax 297,702 326,984 308,517 338,262  448,282 
Profits of fiscal monopolies  5,835 8,210 6,095 10,170  4,879 
Taxes on specific services 16,297 34,085 24,831 17,549  22,397 
Taxes on use of goods, permission to  use goods 3,154 2,355 .... 2,173  4,323 
Taxes on international trade 97,845 91,605 96,537 76,882  92,843 
Import duties 93,748 87,440 96,041 76,482  92,675 
Export duties 3,880 4,164 497 400  168 
Other taxes 9,551 8,243 9,974 10,300  11,484 
a Preliminary. 
Source : Ministry of Finance online information.  View ed at:  http://dw.mof.go.th/foc/gfs/database/C1_ 
 CentralGovernments.html [May 2011]. 
                                                      
72 For further information on personal income tax see Revenue Department online information.  
Viewed at:  http://www .rd.go.th/publish/6045.0.html [May 2011]. 
73 For further information on corporate income tax see Revenue Department online information.  
Viewed at:  http://www .rd.go.th/publish/6044.0.html [May 2011]. WT/TPR/S/255 Trade Policy Review 
Page 76 
  
101. Foreign companies engaged in international transport or receiving income from Thailand 
while not engaged in business in the country pay ta x at 3% on gross receipts while foreign companies 
disposing of profit out of Thailand pa y tax at 10% on the amount disposed.74   
102. The Specific Business Tax (SBT) applies to certa in types of activities that are exempt from 
VAT, such as banking, life insurance, real estate,  pawn brokering, and repurchasing agreements.  The 
tax is applied to total income from these activ ities at 2.5% or 3% depending on the activity.75  
(b) Indirect taxes 
Excise duties 
103. Excise duties are an important source of governme nt 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.  
104. 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).76  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 domest ic production are based on the ex-factory price of 
the goods or gross receipts of the service. 
105. It would appear that, in some cases, different  excise duties are imposed on similar products, 
for example, some distilled spirits ("special spir its") 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. 
Value-added tax 
106. Value added tax accounts for more than a quarter of total tax revenue.  The standard rate of 
VAT is 7% and applies to all goods and services,  with exemptions only for books, education, 
hospitals, unprocessed agricultural products, fertilizer s, animal feeds, pesticides, and certain other 
social goods and services.  Also exempted ar e small businesses with a turnover of less than 
B 1.8 million, goods exempted from import duties,  and imports intended for re-export.  VAT on 
imports is charged on the c.i.f. price plus import duty plus excise duty plus other taxes and fees (if 
any).  A zero rate of VAT is charged on exports of  goods and services, air and sea vessels engaged in 
international transport, and the supply of  goods and services between bonded warehouses or 
enterprises located in free zones (section (3)).77 
                                                      
74 Oxford Business Group (2011), p. 241;  and Sections 67 and 70 of the Tax Code. 
75 For further information on the Special Business Tax see Revenue Department online information.  
Viewed at:  http://www .rd.go.th/publish/6042.0.html [May 2011]. 
76 For the various rates of excise duties (in Thai) s ee Excise Department online information.  Viewed 
at:  www.excise.go.th; and, for some products (in English) Thai Board of Investment online information. 
Viewed at:  http://www.boi.go.th/eng lish/how/tax_rates_and_double_taxation_ agreements.asp [May 2011]. 
77 Revenue Department online information.  View ed at:  http://www.rd.go .th/publish/ 6043.0.html 
[May 2011]. Thailand WT/TPR/S/255 
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107. It has been noted that there are some incons istencies between the application of VAT on 
imports and on domestically produced cigarettes,  resulting in a higher tax charge on imports.78 
(c) Paying taxes 
108. In addition to income tax, excise duties, and value added tax, companies and individuals are 
also potentially liable for stamp duties and local ta xes.  Although in many cases the rates of tax are 
not necessarily high the structures of different tax es, particularly excise duty, are complex and 
completing forms and estimating tax liabilities is tim e-consuming.  According to reports, in 2010 it 
took 264 hours to prepare, file, and pay taxes, which was well above the East Asia/Pacific region 
average of 218 hours and contributed to Thailand's low ranking of 91 out of 183 economies.79  
However, as already noted, a considerable effort  has been made to simplify and facilitate tax 
assessment, filing of returns, and payments, with many documents available for completion on-line. 
(ii) Investment incentives 
109. There has been no substantial change to the br oad range of incentives offered for investment.  
Most of the incentives are tax-related but a number  of legal guarantees and other provisions are in 
place to encourage investment.  The non-tax incenti ves include permits to own land and to transfer 
money out of Thailand.  Despite the wide range of incentives, Thailand continues to maintain a 
number of restrictions on foreign shareholdings, in particular, projects in agriculture, animal 
husbandry, fisheries, mineral e xploration, and mining, as well as certain services, including some 
telecommunications and financial services (Chapter IV (4)) and those related to land trading, media, 
and trading in antiques.  In these cases at least 51% of registered capital must be in Thai hands.   
110. As notified the WTO Committee on Subsidies and Countervailing Measures80, Thailand's 
basic legislation on investment promotion is cont ained in the Investment Promotion Act B.E. 2520 
(1977) as amended by the Investment Promotion Ac t (No.2) B.E. 2534 (1991), and the Investment 
Promotion Act (No.3) B.E. 2544 (2001).81 
111. In November 2009, the Board of Investment (B OI) opened the "One Start One Stop" centre, 
which brought together all the state agencies res ponsible for the permits and licences necessary to 
establish an enterprise and undertake investment in Th ailand.  In order to qualify for tax incentives by 
the BOI , a project must meet the following criteria: 
 have value-added components of at least 20% of sales revenue, except for the 
manufacture of electronic products, and agriculture-related projects; 
 have a debt to equity ratio of no more than three to one for a new project, while 
expansion projects are considered on a case-by-case basis; 
 only new machinery is installed, while used  machinery may be used only if certified 
as reliable and approved by the BOI; 
 provision is made for environmental protection;  and 
 projects with investment capital of more than B 80 million must submit a feasibility 
study to the BOI for approval. 
                                                      
78 WTO documents DS371/*, Panel and Appellate Body reports, "Thailand - Customs and Fiscal 
Measures on Cigarettes from the Philippines". 
79 World Bank Group online information, "Doing Business".  Viewed at:  
http://www.doingbusiness.org/ [May 2011]. 
80 WTO document G/SCM/N/186/THA, 12 November 2009, p.3-4. 
81 For the consolidated legislation (in English) see BOI online information.  Viewed at:  
http://www.boi.go.th/ english/download/b oi_forms/proact_eng.pdf [May 2011]. WT/TPR/S/255 Trade Policy Review 
Page 78 
  
112. The incentives granted to investment projects depend on the region of the country and the 
location of the project.  In all cases, approved pr ojects qualify for a five-year exemption from import 
tariffs on raw material and essential goods used in manufacturing exported prod ucts.  In addition: 
(a) in Zone 1, i.e. the more developed areas (Bangkok and the bordering provinces)82, the 
 incentives include: 
 a 50% reduction in import tariffs on machiner y where the tariff is more than 10%;  
and 
 for projects inside industrial estates or promoted industrial zone, a two year 
exemption for investments of more than Bt  10 million in industrial zones or three 
years if the project succeeds in getting ISO 9000 or 14000 certification within two years of start-up. 
(b) in Zone 2, i.e. the provinces ar ound Zone 1 plus Phuket in the south
83: 
 a 50% reduction in import tariffs on machinery where the tariff is more than 10% or, 
for projects located within industrial estates or  promoted industrial zones, exemption;  
and 
 a three-year exemption from corporate income tax, or a six-year exemption for 
projects inside industrial estates or promoted industrial zone with capital investment of more than B 10 million in industrial zones or seven years if the project succeeds in 
obtaining ISO 9000 or 14000 certification within two years of start-up. 
(c) in Zone 3, which covers the rest of the country: 
 a seven-year exemption from corporate income tax for projects with a capital 
investment of at least B 10 million or eight years if the project succeeds in obtaining ISO 9000 or 14000 certification within two years of start-up; 
 an additional 25% capital allowance on the cost of infrastructure or construction costs 
over a period of up to ten years; 
 a 50% reduction in corporate income tax on profits for five years after the exemption 
period; 
 twice the cost of electricity and water may be counted against revenue for ten years 
from the date of first revenue; 
 a reduction of 75% on import tariffs for fi ve years on raw materials and essential 
goods that cannot be sourced in Thailand and are used in manufacturing for the domestic market;  and 
 in addition, projects in some provinces in Zone 3 qualify for further incentives, such 
as a double allowance for the cost of trans port, and in some others, projects do not 
qualify for the reduction in import tariffs for sales to the domestic market. 
113. Companies may qualify for incentives for relocati ng to less developed zones and for specific 
activities.  In April 2010, the BOI announced the in troduction of a set of tax-based incentives for 
investments in sustainable development that a pply throughout the country except in Bangkok (BOI 
Announcement No. 2/2553).  The incentives are similar to those available for investment projects in 
Zone 3 and cover a wide range of activities relating to biofuels, energy conservation, high technology 
                                                      
82 Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon. 
83 Ang Thong, Ayutthaya, Chachoengsao, Chon Buri, Kanchanaburi, Nakorn Nayok, Ratchaburi, 
Samut Songkhram, Saraburi, Suphanburi, Phuket, and Rayong. Thailand WT/TPR/S/255 
 Page 79 
 
 
products, agriculture equipment, and biotechnology.  Incentives are also available under the Skill, 
Technology and Innovation (STI) Scheme (BOI A nnouncements No.3/2549, 6/2552 and 11/2552), 
and to promote research and development coopera tion between the industrial sector and educational 
institutions (Announcement No. 1/2550).84 
114. According to the authorities, the tax forgone on BOI approved investments is hard to quantify 
and they were unable to provide an estimate. 
115. Foreign investment in Thailand fell sharply 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 all but two projects to resume by September 2010 and the Government started to set up an independent authority to oversee health impacts of investment 
projects.
85 
Table III.8 
Investment in BOI approved projects 
2007 2008 2009 2010 
Total investment (number of projects) 1,342 1,253 1,003  1,566 
Total investment (million Baht ) 744,491 499,727 281,385  491,279 
Total foreign investment (number of projects)a  836 838 614  856 
Total foreign investment value (millio n Baht) 505,612 351,14 2 142,077  279,233 
   - 100% Foreign (number of projects) 479 496 361  558 
   - 100% Foreign (million Ba ht) 238,004 159,77 1 87,736  183,551 
   - Joint-Venture (number of projects)b 357 342 253  298 
   - Joint-Venture (million Baht) 267,608 191,371 54,341  95,682 
100% Thai (number of projects) 452 400 344  629 
100% Thai (million Baht) 220, 369 133,408 73,697  156,741 
Other investment (number of projects)c 54 15 45  81 
Other investment (million Baht) 18,510 15,177 65,611  55,305 
Note: Foreign investment projects refer to projects with forei gn capital of at least 10%.  Joint-venture projects refer to join t projects 
 between local Thai investors and foreign partners with foreign capital of at least 10%.  Other investment projects refer to jo int 
 ventures between local Thai investors and forei gn partners with foreign capital of less than 10%. 
Source: International Affairs Bureau, BOI.  
116. The BOI has never invoked Section 49 or 50 of the Investment Promotion Act, which 
authorize it to protect investments from foreign competition by charging additional import fees up to 50% of the insurance and freight charges for up to a year or, if this is not sufficient, banning imports of similar products. 
(iii) Competition policy 
117. There has not been any major change in Tha iland's competition policy since its last Trade 
Policy Review.  The basic legislation regula ting anti-competitive practices remains the Trade 
                                                      
84 BOI online information.  Viewed at:  http://www.boi.go.th/english/about/law_and_ regulations.asp 
[May 2011]. 
85 Economist Intelligence Unit (2010), p. 24. WT/TPR/S/255 Trade Policy Review 
Page 80 
  
Competition Act B.E. 2542 (1999).86  In addition, several other Acts may affect competition by 
seeking to protect the consumer and by affec ting how businesses behave and interact, such as: 
 the Unfair Contract Terms Act B.E. 2540 (1 997), which provides a legal basis on which 
the courts determine whether the terms of a contract are unfair and gives them the power to intervene by limiting or voiding such unfair terms
87; 
 the Prices of Goods and Services Act B.E. 2542  (1999), which gives legal basis for price 
controls and prescribes certain business practices as infringements on the operation of a free market (section (iv)); 
 the Direct Sales and Direct Marketing Act B. E. 2545 (2002), which entered into force in 
2007, regulates direct sales through the internet;
88  and 
 the Liability for Damages Arising from Unsa fe Products Act B.E. 2551 (2008), which 
established consumer courts and made produ cers and importers liable for selling unsafe 
products and put the burden of proof on them rather than on consumers.89 
118. The Trade Competition Act is implemented by the Office of the Trade Competition 
Commission in the Department of Internal Trade in  the Ministry of Commerce.  The Commission is 
chaired by the Minister of Commerce and includes representatives of the Ministries of Commerce and 
Finance along with other members appointed by the Council of Ministers.  The Act does not apply to central, provincial or local administration, state tr ading enterprises, farmers' groups, co-operatives or 
co-operative societies, or businesses prescribed by Mi nisterial Regulations to have an exemption from 
the Act.  The Act prohibits several typ es of anti-competitive behaviour, including: 
 abuse of a dominant position such as fixing buy ing or selling prices, applying conditions 
or restrictions to sales or purchases, or restricting supply of goods or services.  In February 2007, the Commission defined a dominant position as being a market share of more than 50% over a 12-month period, 3 companies having a combined market share of 
more than 75% with each player having at least 10%;
90 
 mergers that may result in monopoly or unfair competition; 
 agreements between businesses that amount to a monopoly, or a reduction or restriction 
of competition; 
 agreements that restrict purchase of goods or services from overseas;  and 
 unfair business practices. 
119. Since 1999, the Trade Competition Commission has received 77 complaints and made 
decisions in 66 cases (Table III.9) .  Some notable cases include: 
 alleged excessive pricing by a cable te levision monopoly, which the Commission found 
was outside its jurisdiction and passed to  the Mass Communication Organization of 
Thailand;  
                                                      
86 A tentative translation into English of the Act is available from the Department of Internal Trade.  
Viewed at:  http://www.dit.go.th/diteng/contentmain.asp?deptid=&catid=108 [May 2011]. 
87 Viewed (in English) at:  http://www.coj.g o.th/eng/LawsEng1/DE1.html [May 2011]. 
88 Viewed (in English) at:  http://www.thailawforum .com/database1/direct-sales-act.html [May 2011]. 
89 Viewed (in English) at:  http://www.thailawf orum.com/database1/Thailand-Product-Liability-
Act.html [May 2011]. 
90 Office of the Trade Commission (2007). Thailand WT/TPR/S/255 
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 an alleged tie-in of sales of beer with a liquor made by the same producer.  The 
Commission found a breach of the Trade Competition Act but did not take any legal action in the absence of any notification defining a dominant position; 
 allegations by domestic supplie rs and retail outlets that fo reign retail companies engaged 
in unfair business practices, such as mandato ry enrolment in pri ce promotion schemes 
and preferential treatment for own-brand pr oducts.  The case resulted in the Commission 
issuing "Guidelines for Unfair Trade Practices in the Wholesale/Retail Business".
91  As 
of end-June 2011, at the request of th e Commission, the Inquiry Sub-committee is 
investigating grounds for action in this case  
 alleged exclusive dealing in the motorcycle  market, where a foreign manufacturer that 
held a market share of 80% in Thailand, prohibited retail outlets from selling or displaying other brands in the same outlet.  The Commission found this to be an unfair 
business practice because the unequal bargaining power between the manufacturer and 
retailer enabled it to impose conditions that restricted competition.
92  
Table III.9 
Cases referred to the Trade Competition Commission 
 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 
             
Abuse of dominant position 1 2 3 2 3 0 0 0 3 0 1 0 
Mergers and acquisitions 0 0 0 0 0 0 0 0 0 0 0 0 
Restrictive Agreements 0 0 1 1 8 3 2 1 1 0 0 0 
Unfair trade practices 1 2 3 4 2 9 7 6 5 4 0 1 
Source : Data provided by the authorities. 
120. If the Commission finds a breach of the Trade Competition Act, it may refer the case to the 
public prosecutor who may pursue it through the courts ;  as of end-June 2011, only one such case has 
been referred to the public prosecutor. 
121. Failure to comply with the Act can result in fines of up to B 6 million and imprisonment for 
up to three years.  However, according to one re port, the Trade Competition Act is seen as having 
little impact on business practices due to poor transp arency in administration and enforcement of the 
law, the broad discretionary authority of the Comm ission, opaque rules for its implementation, and an 
ineffective structure and composition of the Commission.93  Another report reached a similar 
conclusion and cited the high level of political in fluence and lack of independence in a Trade 
Commission chaired by a Minister and including repr esentatives of trade associations that tend to 
represent large enterprises.94 
122. The authorities stated that they had organized a number of meetings with interested parties, 
including the Board of Trade, the Federation of Thai  Industries, lawyers, academics, and consumers, 
along with the ASEAN Regional Guidelines on Compe tition Policy, for possible revisions to the law 
and its implementation. 
                                                      
91 Viewed (in English) at: http://gis.dit.go.th/otcc/contentmain_en.asp?typeid=13 [May 2011]. 
92 Nikomborirak (2008). 
93 Mayer Brown JSM (2010). 
94 Nikomborirak (2008). WT/TPR/S/255 Trade Policy Review 
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(iv) Price controls 
123. The Prices of Goods and Services Act B.E. 25 42 (1999) established a Central Commission on 
Prices of Goods and Services (CCP) in the Department  of Internal Trade (DIT) in the Ministry of 
Commerce.  The Commission is chaired by the Mi nister of Commerce and includes representatives 
from the private sector and academics.95  The Commission has the authority to set out the goods and 
services subject to price controls, and to set controls for the sale or purchase prices on these goods and services.  It is required to ensure that there is a sufficient supply of goods and services subject to price controls to meet domestic demand, to consider comp laints about unfair price practices, and to set out 
procedures and conditions relating to the display of  prices for goods and services.  In addition to the 
Central Commission, the Act set up provincial commissions to regulate prices in each province. 
124. The CCP monitors prices of 205 goods and 20 services divided into three categories 
(Table III.10):  the Sensitive List of goods and ser vices whose prices are monitored daily because they 
are expected to increase in the near  future;  the Priority Watch List of goods and services that are 
monitored twice a week;  and the Watch List of goods and services that are monitored twice a month.  
125. Based on its monitoring of price fluctuations, the CCP has the power, under the Prices of 
Goods and Services Act, to apply price controls on  goods and services.  According to the authorities, 
the objective of applying price controls is to preven t unfair price fixing or unfair trade practices.  The 
CCP maintains three lists of products subject to va rying degrees of price control:  the Controlled List 
of 39 goods and 2 services for which the CCP imposes maximum prices
96;  the Administered List of 
205 goods and 20 services for which manufacturers mu st 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.   
126. The Commission also has the power to require the producer, distributor, purchaser for 
redistribution, or the importer for redistribution of goods or services, to display the prices of goods and services and it may prescribe rules, proce dures, and conditions for such display. 
127. The previous TPR report on Thailand stated tha t:  "In general, most manufacturers follow the 
DIT's requests as the DIT may take legal or administ rative actions against those who do not and if the 
manufacturers still do not comply, their products will be reclassified into the C ontrolled List to more 
stringent requirements." According to the authoriti es, products in the Administered List may be 
reclassified onto the Controlled List when necessar y and based on the circumstances of a particular 
case.  
128. The Ministry of Commerce may also ask manufacturers and retailers to freeze or cap prices 
voluntarily.  In February 2008, 300 producers of consumer goods agreed to freeze prices for six 
months and in December 2010, 200 manufacturers agreed to freeze retail prices until 
                                                      
95 A tentative translation into English of the Act is available from the Department of Internal Trade.  
Viewed at:  http://www.dit.go.th/diteng/contentmain.asp?deptid=&catid=108 [May 2011]. 
96 Products on the controlled list include pig meat, garlic, instant coffee, rice husk, condensed milk, 
yoghurt, milk powder, sugar, edible oils, bread, preserved food, shampoo, detergents, washing up liquid, soap, 
paper cartons, printing and writing paper, adhesive paper, tissue paper, automotive batteries, motorcycle tyres, vehicle seats, cement, power cords, rebar steel, LPG, fuel oil, fertilizer, corn, cassava, animal foods, plant 
disease and pest products.  Translated from Department of Internal Trade online information, "List of goods and 
services over the year 2553".   Viewed at:  http://www.dit.go.th/c ontentdetail.asp?typeid=9&catid= 
102&ID=2290 [July 2011]. Thailand WT/TPR/S/255 
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end-March 2011.97  Although these controls are voluntary, it has been stated that the threat of 
applying price controls is u sed to encourage producers to apply voluntary caps on prices.98 
Table III.10 
Products and services subject to monitoring, October 2006 
List Products 
Goods  
Sensitive  1. Gasoline oil, 2. Diesel oil, 3.  Milk powder, 4. Fresh milk, 5. Wire/cable 
Priority Watch 1. Sugar, 2. Fertilizer, 3. Animal feed, 4. Tyre, 5.Cement, 6.  Galvanized iron, 7. Steel rod, 8. Section, 9. Steel sheet 
(hot/cold/roll and stainless) 
Watch 1. Fresh chicken, 2. Eggs, 3. Duck eggs, 4. Beef, 5. Pork, 6. Tiger shrimp, 7. White shrimp, 8. Short-bodied 
mackerel, 9. Catfish, 10. Nile tilapia, 11. Steamed short- bodied mackerel, 12. Morning glory, 13. Chinese broccoli, 
14. Coriander, 15. Green oni on, 16. Chilli, 17. Lemon, 18.  Noodle, 19. Napa cabbage, 20. Cabbage, 21. Mustard 
leaf, 22. Clam mussels, 23. Rice, 24. Yogurt, 25. Soyb ean milk, 26. Sweetened condensed milk, 27. Sweetened 
creamer, 28. Instant coffee, 29. Artificial cream, 30. Ice,  31. Soft drink/soda, 32. Dr inking water, 33. Canned fruit 
juice, 34. Instant tea, 35. Instant coff ee, 36. Seal fruit, 37. Seal vegetable,  38. Instant chocolate drink (water and 
powdered), 39. Salt, 40. Cooking oil, 41. Fish sauce, 42. So y sauce, 43. Vinegar, 44. S oy bean sauce, 45. Oyster 
sauce, 46. Ketchup, 47. Chilli sauce, 48. Sweet chilli sauce, 49. MSG (M ono Sodium Glutamate), 50. Flour, 
51.Tapioca flour, 52. Thin dried noodle, 53. Glass noodle, 54.  Semi instant food, 55. Seasoning, 56. Instant food, 
57. Pepper, 58. Soybean sauce, 59. Coconut milk, 60. Body lotion, 61. Cleansing foam, 62. Soap, 63. Shampoo, 
64. Conditioner, 65. Hair gel,  66. Hair dye, 67. Air freshener, 68. Ta lcum powder, 69. Detergent, 70. Cleansing 
detergent, 71. Stained remover, 72. White bleach, 73. Soft ener, 74. Iron starch, 75. Dish washing product, 76. Toilet 
cleaner, 77. Floor cleaner, 78. Furniture  cleaner, 79. Shoe polisher, 80. Toot hpaste, 81. Toothbrush, 82. Sanitary 
napkin, 83. Diaper, 84. Cotton bud, 85. Battery (use for el ectronic appliance), 86. Razor blade, 87. Insecticides, 
88. Paper pulp, 89. Craft paper, 90. Sheet board, 91. Printing paper, 92. Proof paper, 93. Toilet paper, 
94. Notebook, 95. Light bulb, 96.Hair dryer, 97. Electric fan, 98. Rice cooker, 99. Refrigerator, 100. Television, 
101. Electric kettle, 102. Grinding mach ine, 103. Iron, 104. Air conditioner,  105. Washing machine, 106. Vacuum 
cleaner, 107. Water heater, 108. Purifier, 109. Tape a nd CD player, 110. Microwave, 111. Pumping machine, 
112. Passenger car, 113. Small truck, 114. Motorcycle, 1 15. Bicycle, 116. Lubrican t filter, 117. Air filter, 
118. Brake, 119. Motorcycle tyre, 120. Bicycle tyre, 1 21. Battery (use for vehicl e), 122. UV protection film, 
123. Motorcyclist helmet, 124. Wall tile and floor tile, 125.  Roof tile, 126. Gypsum board, 127. Heat protection 
board, 128. Cement floor, 129. Mirror, 130. Cement pipe , 131. PVC pipe, 132. Aluminium pipe, 133. Aluminium 
extrusion, 134. Plywood, 135. Nail, 136. Painting colour , 137. Rock, 138. Sand, 139. Brick, 140. Light block, 
141. Block concrete, 142. Finished c oncrete, 143. Concrete floor product,  144. Tank, 145. Fat screen tank, 
146. Lubricant, 147. Bunker oil, 148. Bio diesel gas, 149. Cooking gas, 150. Liquefied petroleum gas, 151. Plastic 
basin, 152. Plastic bag, 153. Carry  plastic bag, 154. Garbage bag, 155. Wrapping plastic bag, 156. NGV, 
157. Analgesic, 158. Cold relief medicine, 159. Muscular pain relief, 160. Wound soluti on, 161. Plastic adhesive 
bandage, 162. Cotton, 163. Two wheel walk-behind tracto r, 164. Farm tractor, 165. Lawn mower, 166. Rice 
combine harvester, 167. Water pump, 168. Slan, 169. Hoe,  170. Spade, 171. Hand grass shears, 172. Pesticides, 
173. Pesticides sprayer, 174. Food package foam, 175. Ti n plate, 176. Tin free, 177. Student bag, 178. Student 
uniform, 179. Student socks, 180. Student  shoes, 181. Water filter, 182. Cassette  tape, video tapes, compact disc, 
183. Mobile phone, 184. Mobile phon e battery, 185. Filling card, 186. Gold ornaments and gold bullion 
Services  
Sensitive  Delivery services ( document, package, and fax) 
Priority Watch Repair service 
Watch 1. Ticket service, 2. Flower arrangement, 3. Watch, cloc k, and shoes repair, 4. Laundry service, 5. Barber shop, 
6. Fixing clothes 7. Electronics, water, and telephone, 8.  Photocopy service, 9. Develop service, 
10. Parking service, 11. Refill and changing oil, 12. Pet care, 13. Gym,  swimming pool, and tennis/badminton 
court, 14. Barber shop, 15. Cassette tapes, video tape, and compact disc, 16. Apartment, hotel and accommodation 
rental, 17. Book rental 
Source:  Department of Internal Trade online information.  Viewed at: 
 http://www.dit.go.th/uploadne w/2007118E367_200_items.pdf [May 2011].  
                                                      
97 Economist Intelligence Unit (2010), p. 82. 
98 Business Report Thailand, " A cap on controls",  14 May 2011.  Viewed at:  
http://www.businessreportthailand.com/a- cap-on-controls-12802 [May 2011]. WT/TPR/S/255 Trade Policy Review 
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(v) Government procurement and countertrade 
(a) Government procurement 
129. At present, Thailand is neither a signatory nor an observer to the WTO Plurilateral Agreement 
on Government Procurement.  According to the authorities, Thailand is considering whether to 
become an observer as a possible firs t step towards full membership. 
130. The legislative basis for government procurement in Thailand is set out in several sets of 
regulations, including:  Office of the Prime Minist er Regulations on Procur ement B.E. 2535 (1992), 
which has been amended seven times, most recently 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 particular 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 
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). 
131. Several other pieces of legislation include pr ovisions that could have a bearing on public 
procurement, such as the Royal Decree on Good Governance in Public Sector B.E. 2546 (2003), 
which requires government agencies to take into account the quality and maintenance costs of goods 
and services in awarding contracts.  Similarly,  the Organic Act on Counter Corruption B.E. 2542 
(1999) and B.E. 2544 (2011) apply to government  procurement contracts, and the National Anti-
Corruption Commission (NACC) may investigate claims of corruption.  In addition, some rules apply 
to all public procurement, such as cabinet resolutions on local preferences.99 
132. For Central Government procurement, the Public Procurement Management Committee 
(made up of representatives of various government agencies) is responsible for oversight of the 
system, while the Office of Public Procurement Management in the Comptroller General's 
Department in the Ministry of Finance is responsib le for day-to-day implementation and regulation.  
Other agencies responsible for the administration of  government procurement include:  the Bureau of 
the Budget (responsible for the budget planning, allocation, and evaluation);  the Comptroller 
General's Department (budget disbur sement);  the Department of Special Investigation (inspection of 
the procurement process);  the Thai Industrial Standa rds Institute (registration of products subject to 
industrial standards requirements in order to be el igible for preference margins);  Office of the 
Auditor General (procurement audit);  Offi ce of the National Anti-Corruption Commission 
(inspection of the procurement process);  the Admi nistrative Court (the jurisdiction of administrative 
cases involving such matters as a dispute in relation to unilateral administrative acts);  and the Office 
of Ombudsman (an alternative fo r complaint and bid protest). 
133. The Department of Local Administration in the Ministry of the Interior is responsible for 
overseeing procurement by local government organiza tions and the State Enterprises Policy Office in 
the Ministry of Finance is responsible for ove rseeing procurement by state-owned enterprises.  
                                                      
99 APEC (2010), Chapter 9. Thailand WT/TPR/S/255 
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134. 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 development.100   
135. Six principal procurement methods are used in Thailand.  The method used depends on 
several factors, including the value of the cont ract, the procuring entity, and the urgency of 
procurement: 
 price agreement, or negotiation for procurements of less than B 100,000; 
 price inquiry, or price search for contracts of between B 100,000 and B 2 million; 
 open bidding for contracts of more than B 2 million;  
 electronic bidding (e-Auction), also for contracts of more than B 2 million; 
 special methods, which are used by governme nt agencies specified in Regulations for 
Local Administrative Organisations B.E. 2538 (1995);  and 
 special-case methods for procurement contracts worth more than B 100,000 where other 
methods are not suitable, such as in cases of repeat procurements or where a delay may 
cause problems for the procuring agency. 
136. The use of different methods has changed over the past few years with electronic bidding 
becoming more common as price search and open biddi ng have declined (Table III.11).  In 2010, 40% 
of the value of tenders awarded were based on el ectronic bidding.  However, the use of different 
methods varies widely from one government agency  to another.  Among the top seven agencies 
responsible for B 301 billion or over 80% of the tota l value of government procurement, the use of e-
Auction varied from 54% of total value for the Ministry of Transport to 19% for the Ministry of 
Natural Resources and Environment, while price negotiation varied from 41%  for the Ministry of Public Health to 3.3% for the Ministry of Defence.
101  
Table III.11 
Public procurement by method, 2005-09 
(% of price) 
 2005 2006 2007 2008 2009 
Negotiation 17.8 14.8 13.9 14.9 17.1 
Price search 21.5 16.1 13.9 12.0 12.0 
Open bidding 30.7 26.9 16.8 10.7 9.4 
Electronic bidding 10.1 24.9 34.1 37.2 36.0 
Special methods 12.3 11.6 14.1 17.0 17.0 
Special-case methods 7.6 5.8 7.2 8.2 8.6 
Other 0.0 5.8 7.1 6.2 6.1 
Source : Khoman, S. (2010), Thailand Public Procurement, Overview :  Procurement Cases and Design Problems,  
presentation at the Asia Pacific Procurement Partnership Initiative 30 November to 1 December 2010. 
                                                      
100 APEC (2010),  Chapter 9. 
101 The top seven were the ministries of Transport, Agriculture and Cooperativ es, Defence, Education, 
Public Health, Natural Resources and the Environment, and the Central Fund. WT/TPR/S/255 Trade Policy Review 
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Table III.12 
Public procurement by  agency and method, 2010 
(Million Baht) 
Agency Negotiation Price 
search Open 
bidding Electronic 
bidding Special 
methods Special 
case 
methods Other Total 
Ministry of Transport  4,557   9,303  18,257  54,501  3,974  862   3,936   95,390 
Ministry of Agriculture and 
Cooperatives  8,298   8,548  2,670  27,802  4,932  1,715   2,114   56,080 
Ministry of Defence  1,778   3,877  900  16,996  18,449  11,062   55   53,119 
Ministry of Education  10,176   12,639  3,714  14,235  4,266  805   220   46,054 
Central Fund  1,136   2,367  1,115  3,559  7,321  1,037   967   17,502 
Ministry of Public Health  6,970   1,937  1,221  3,363  2,556  682   61   16,790 
Ministry of Natural 
Resources and Environment  1,492   7,870  1,740  3,044  1,389  155   523   16,213 
Other public agencies  11,680   4,311  5,185  23,035  16,421  5,066   3,563   69,260 
Source : Thai authorities. 
137. In addition to the requirements applying to  procurement methods, contracts require 
authorization.  The level of authorization depends  on the value of the contract and the method of 
procurement used.  For procurement based on negotiati on, price search or open tendering, the head of 
the department may authorize contracts of up to B 50 million, the Permanent Secretary for contracts 
of B 50-100 million, and the Minister for contracts of more than B 100 million.  For special-case 
methods the thresholds are halved, except where pr ior approval has already been given by the Prime 
Minister or the Cabinet.  A similar structur e applies to procurement by local administrative 
organizations, for example, the mayor of a munici pality may approve contracts of up to B 300 million 
and the Governor for contracts exceeding this value.  
138. The legislation on Government  procurement includes some preferences for domestic suppliers 
of goods and services, particularly small- and medium-sized enterprises.  The Regulations on 
Procurement B.E. 2535 emphasize: the use of products  made in Thailand and Thai producers (Part 2, 
Section 2, Articles 16 and 17);  promote the use of Thai  advisors (Article 74);  and, as part of official 
health policy, give preferences to the Governme nt Pharmaceutical Organization where the price 
differential does not exceed 3% of a reference pric e established by the Ministry of Public Health 
(Articles 60-64).102  Some reports continue to state that gove rnment agencies or st ate 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 provision allegedly al lows considerable leeway in managing tenders.  
It was also reported that private-sector re presentatives have expressed concern regarding a 
government decision to remove arbitration clauses from concessions and government contracts.
103  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.104   
                                                      
102 Khoman (2009). 
103 USTR (2010a). 
104 The Thai authorities also noted that a procurement agency may reject the lowest price bid if there is 
proven evidence that the quality and qualification of items or services to be procured are not the same as those specified in the procurement documents and are not beneficial to the Government.  In addition, after bidding, 
but before signing a contract or agreement, if it is to th e benefit of the Government to alter essential details or 
conditions contained in the bid docume nts, which lead to any advantage or  disadvantage among the bidders, the 
head of the government agency may cancel the bid.  Other cases where th e lowest bid may be rejected or 
conditions changed are also specifically set out in legislation and include wrongdoing during the bidding 
process, if there is a derived joint benefit between the procuring agency and the bidder, if the winning bid exceeds the budget or if the bidding sp ecifications are discriminatory.  Furt hermore, the Office of the Auditor Thailand WT/TPR/S/255 
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139. In order to improve transparency, ease of use, accessibility for businesses, and public 
procurement policy, an electronic government procur ement (e-GP) system is being developed. The 
first phase was completed in April 2010 and the sec ond phase is to be introduced in August 2011; no 
date has been set for the third phase.  
140. An Electronic Procurement Information Center (EPIC) has been set up under the first phase 
(e-Auction).  Its five components are:  a registra tion management centre;  the operation system;  an 
information disclosure centre;  a management inform ation system;  and a help desk for users.  The 
e-Auction provides an online sealed-bid auction sy stem through 12 service providers licensed by the 
Comptroller General's Department.  The second ph ase will extend e-GP to cover all steps of the 
procurement process as well as the contract management and grading systems.  It is also to interface 
with related agencies and systems, including th e Government Financial Management Information 
System (GFMIS), commercial banks for bank guarantees,  and the Thai consultant data centre.  The 
third phase (e-Market), is intended to create a system  that integrates buyers, suppliers, distributors, 
and service providers.105   
141. The previous Review of Thailand highlighted ongoing concerns about corruption in public 
procurement, which had been highlighted in several  reports.  Although there is a comprehensive legal 
and institutional framework in place to oversee pub lic procurement it is dispersed through a number 
of pieces of legislation and agencies.  It was in re cognition of this problem that the e-Auction system 
was developed in addition to government and private-sector campaigns against corruption. 
142. According to the authorities, one of the main t ools for tackling the possibility of corruption is 
transparency and competition, along with fair pr equalification procedures.  All of Thailand's laws, 
regulations, and policy guidelines on pub lic procurement are published in the Royal Gazette  as well as 
being posted on several official we bsites.  The actual procurements contracts from central government 
agencies must also be posted on the Thai Governme nt Procurement website (Thai only), which also 
gives access to the e-Auction system and provides in formation on selection criteria (such as price and 
bidders' qualifications), the results of th e auction, and details for the decision.106  Thai officials are 
also required to abide by codes of conduct, both specifically concerning public tendering and more 
generally.107  Bribery is a penal offence and is punish able by fines and prison sentences, while the 
Transaction Committee, established under the Anti- Money Laundering Act B.E. 2542 (1999), may 
ban any transaction where there are grounds for susp icion of bribery;  assets may be frozen and 
forfeited.108  
143. Inspection of fulfilment of procurement contracts, by the Materials Inspection and 
Acceptance Committee, and auditing of accounts by th e Office of the Auditor General are intended to 
reduce the probability of corruption. Complaints  may be taken to the National Anti-Corruption 
Commission, the Public Procurement Manage ment Committee or the Auditor General. 
                                                                                                                                                                     
General and the Office of the National Anti-Corruption Commission has the right to revoke a bid in cases of 
wrongdoing during the bidding process.  Appeals may be made through the head of the procuring agency, the 
office of the Auditor General, the Office of the National Anti-Corruption Commission or the Office of the 
Ombudsman. 
105 Comptroller General's Department (2010). 
106 Online information.  Viewed at:  http://www.gprocurement.go.th/wps/portal/index_EGP 
[May 2011]. 
107 For example, the Anti-Money Laundering Act B.E. 2542 (1999), the Organic Act on Counter 
Corruption B.E. 2542 (1999), the Royal Decree on Good Governance in State Administration B.E. 2546 (2003), 
the Civil Service Act B.E. 2535 (1992), and the Civil Service Ethic Standards. 
108 Vasantasingh (2008). WT/TPR/S/255 Trade Policy Review 
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(b) Countertrade 
144. Countertrade and barter are no longer used for procurement, and the relevant policy 
regulations were repealed in early 2007.  However,  it has been reported that countertrades are used 
occasionally, for example with countries that have difficulties obtaining commercial banks to accept 
letters of credit.109 
(vi) Intellectual property rights 
145. Thailand has been a member of the World In tellectual Property Organization since 1989 and a 
party to the Berne Convention for the Protection of Literary and Artistic Works since 1931.  Since its 
last Trade Policy Review in 2007, Thailand has acce ded to the Paris Convention for the Protection of 
Industrial Property (in 2008) and th e Patent Cooperation Treaty (2009).110  It is not a party to the 
Rome Convention for the Protection of Perform ers, Producers of Phonograms and Broadcasting 
Organizations, but the authorities indicate that most of the convention's principles are already incorporated into current copyright legislation, in accordance with Article 2 of the WTO Agreement 
on Trade-Related Aspects of Intellectual Property Rights (TRIPS).  Thailand plans to accede to the 
Protocol relating to the Madrid Agreement Concerni ng the International Registration of Marks by the 
end of 2012; ASEAN members have agreed to do this by 2015 under the ASEAN Economic 
Community Blueprint.
111 
146. Under the WTO Doha Work Programme, Th ailand has co-sponsored proposals on the 
relationship between the TRIPS Agreement and th e UN Convention on Biological Diversity (TRIPS 
and CBD), where it has expressed concern about bi opiracy and inappropria te patenting, and on 
extending beyond wines and spirits the enhanced (TRIPS Article 23) protection for geographical 
indications (GI extension), Thailand has identified its fragrant rice (Hom Mali or Jasmine) as one of 
its interests.  On geographical indications, it co-s ponsored an unofficial document in November 2007 
proposing that Article 23 be exte nded to all products.  On TRIPS and biodiversity, it joined a 
May 2008 formal proposal for the TRIPS Agreement to require patent applicants to disclose the origin 
of the genetic resources, associated traditional knowle dge, or both, if used in their inventions (the 
"disclosure" proposal).  In July 2008, when a group of ministers met at the WTO to try to achieve a 
breakthrough in the Doha Round negotiations, Tha iland joined an enlarged group (the W52 Group) 
calling for modalities to be negotiated in parallel in three issues: the disclosure proposal, GI extension, 
and the multilateral register for geogra phical indications for wines and spirits.112  In 2011 it co-
sponsored proposals on "GI extension" (TN/C/W/60) and "TRIPS and CBD" (TN/C/W/59), and 
participated in the drafting group in the negotia tions on the GI register for wines and spirits. 
147. Thailand has not yet implemented the 2003 WTO General Council waiver on compulsory 
licensing, set up under Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public 
Health to allow compulsory licensing for exports to countries lacking their own production capacity 
                                                      
109 Economist Intelligence Unit (2009). 
110 See WIPO online information.  Viewed at:  www .wipo.int/treaties [22 April 2011]. Thailand's 
Ministerial Regulation on the Application for Patent Pr otection to Implement the Patent Cooperation Treaty, 
B.E. 2552 (2009) was notified in WTO document IP/N/1/THA/2, 9 March 2010. 
111 Information from the Department of Intellectual Property;  Nattaphol Arammuang (2008);  
Informed Counsel, Vol.1 No. 2, May 2010, Tilleke & Gibbins International, Bangkok;  WIPO online 
information.  Viewed at:  www.wipo.int/treaties [22 April 2011];  and Economist Intelligence Unit (2010a). 
112 The proposals are in WTO documents:  JOB(07)/190, 30 November 2007, on GI extension; 
TN/C/W/49, 28 May 2008, on "disclosure"; and TN/C/W/52, 19 July 2008, on the three issues.  See also 
Thailand's statements on TRIPS and CBD in various minutes of the TRIPS Council, and Secretariat document on GI extension issues TN/C/W/25, 18 May 2005. Thailand WT/TPR/S/255 
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(the "Paragraph 6" system).  Nor has it yet accepted the 2005 decision to convert the waiver into a 
TRIPS Agreement amendment.113  However, it is preparing to amend the Patent Act and the procedure 
for implementing the Paragraph 6 system will be discussed and then included in the draft amendment.
114  The aim was to submit a draft to the Ca binet 2011, after a process that includes public 
consultation;  however, due to the 3 July 2011 gene ral election, during the legislative plans under the 
next government and Parliament were unknown at the time of writing. 
148. Thailand has notified its intellectual property c ontact points as required by TRIPS Article 69 
on international cooperation.115 
(a) Legislative and institutional developments 
149. As a developing country, Thailand has implemented the WTO TRIPS Agreement since 2005.  
Although it has been planning further legislation to  strengthen the legal framework for intellectual 
property, no new laws have been p assed since its last Review in 2007.116  Legislation being prepared 
includes amendments to patent and optical disc laws first, followed by trademark, copyright and trade 
secrets legislation.117  The Information Technology and Communi cations Ministry is also reported to 
be considering amending the 2007 Computer Crime Act to include provisions on intellectual property 
infringement.118 
150. Under the Ministry of Commerce, the Department  of Intellectual Property (DIP), with around 
400 staff and a budget of B 316m (2011), is responsib le for implementing laws and initiating reforms 
on intellectual property protection covering copyright s, trade marks, patents, integrated circuit 
topographies, geographical indications, trade secret s, optical disc production, traditional knowledge, 
and other subjects.  This includes promoting the protection, creation, ma nagement, 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.119  The department is studying the options for 
turning itself into a self-regulatory body, looking at models in some other ASEAN countries.  One of 
the objectives is to increase financial independence so that more examiners can be hired, and to 
reduce the backlog of patent and trade mark applications.120 
151. The DIP is the focal point for the Governme nt's Creative Thailand project, involving the 
public and private sectors.  For this, it drafted a Creative Economy project, inaugurated in August 
2009, whose objectives include making Thailand a hub for creative industries in the ASEAN region, 
and increasing creative industries' contribution to GDP  from 12% to 20% by 2012.  Officials say that 
the project highlights the need for policy to take another track, in parallel with enforcement, which 
                                                      
113 See WTO online information.  Viewed at:  www.wto.org/tripshealth, and WTO document IP/C/57, 
10 December 2010 on the "Paragraph 6" review. 
114 Information from the Department of Intellectual Property. 
115 WTO online information, "Members' Transparency Toolkit, TRIPS". Viewed  at: www.wto.org/trips 
[22 April 2010]. 
116 English translations of Thailand's intellectual prop erty laws and related legislation, regulations, and 
treaties are available in the World Intellectual Proper ty Organization's database, WIPO Lex. Viewed at: 
http://www.wipo.int/wip olex/en/profile.jsp?code=TH.  Explanations of  the laws can be found in Department of 
Intellectual Property (2010). 
117 Information from the Department of Intellectual Property;  and Vachanavuttivong (2010). Some 
drafts are available in Thai from the Department of Intellectual Property online information. Viewed at: 
www.ipthailand.go.th [23 April 2011]. 
118 Mokkhavesa (2010). 
119 Department of Intellectual Property (2010) and (2011). 
120 Information from the Thai authorities; and Economist Intelligence Unit (2010). WT/TPR/S/255 Trade Policy Review 
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was originally the sole focus.  Separately, the DIP has also set up an online Intellectual Property 
Central Market, for rights holders to trade their inte llectual property.  The department highlights 4 out 
of 925 works that were traded by January 2010:  design patents for a nano noise filter and an air 
purifier, and distribution rights for a petty-paten ted wheel lock, and for trademarked "Kesorn Mai 
Hom".121  Since late 2007, the department has been se tting up technology licensing offices at various 
universities to encourage the private sector to lic ense the results of academic research.  It has 
agreements on technology licensing with six universities.122 
152. The Ministry of Science and Technology also has an Intellectual Property Management unit 
("We file.  We sell.  We value.  We do anything about IP") in its National Innovation Agency.  Its role 
is described as a broker to promote partnerships between private companies and local researchers, and 
a consultant on registration and a provider of various services.  
Copyright and related rights 
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
123, except for works of applied art, which ar e protected for 25 years from the date of 
creation.124  Copyright applies from the time a work is created.  Registration is not required, but the 
Department of Intellectual Property issues certific ates for notified copyrighted works.  Protected 
works are literary (including computer programs), dramatic, artistic, musical, audio-visual, photographic, cinematographic, sound recorded, br oadcast, 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 resear ch, study or other personal use, and if it is not for 
profit. 
154. If copyrights are infringed, rights holders may seek injunctions, compensation for damages, 
and recover investigation costs a nd legal expenses.  Competent au thorities under the Copyright Act 
have the right to seize pirated goods upon the requ est of the copyright holder and to enter any 
premises where they suspect these goods are bei ng held.  Penalties for direct infringement for 
commercial purposes range from B 100,00 0 to B 800,000, with prison te rms of six months to four 
years.  
155. Annual copyright notifications peaked in 2006,  at 39,511 and fell by almost half in 2009 
before increasing slightly in 2010 (Table III.12).  The largest numbers were in musical, artistic, and 
literary notifications, with the fall of almost 19, 000 from the peak in musical notifications accounting 
for almost the entire decline in the total.  Sound recording notifications also fell dramatically after 
2006.
125  This coincides with a period when the music industry was said to be struggling to compete 
with pirates.  According to one report, EMI Thailand (one of the big four multinationals in Thailand, 
                                                      
121 Economist Intelligence (2010). The web a ddress given for IP Central Market is 
www.thaiipmart.com. 
122 Information from the authorities; and Economist Intelligence Unit (2010a).  The six are Khon Kaen, 
Naresuan, Prince of Songkla, Chiang Mai, Suan Dusit Rajabhat, and Thai Chamber of Commerce universities.  
In July 2011, Prince of Songkla University's website adver tised itself as the first university in Thailand to apply 
for a patent through WIPO's Patent Cooperation Treaty. 
123 For joint authorship, copyright lasts for the life of the authors plus 50 years after the death of the last 
surviving author.  If the author is a legal person, copyrigh t lasts for 50 years from the date the work was created;  
if the work is published during the period, copyright lasts for 50 years from its first publication. 
124 If the work of applied art is published within 25 years of its creation, copyright lasts for 50 years 
from its first publication. 
125 Department of Intellectual Property (2010 ).  Viewed at:  ww w.ipthailand.go.th. Thailand WT/TPR/S/255 
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with Sony-BMG, Warner, and Universal) closed  its CD and DVD manufacturing in Thailand in 
January 2008, citing pirated discs as the cause;  in a ddition, 20 independent Thai  labels went out of 
business in 2006126, although other factors such a market structure in the Thai industry and the 
increase in legal and illegal downloading and f ile sharing may also have played a part. 
Table III.13 
Copyright notifications, 2005-10 
 2005 2006 2007 2008 2009 2010 
Literary 1,892 1,892 1,617 2,114 3,621 4,283 
Dance 4 4 18 43 26 23 
Artistic 3,899 3,899 4,823 5,430 4,966 6,776 
Musical 15,325 28,347 15,511 13,471 10,653 9,427 
Audiovisual 575 1,709 1,172 600 790 639 
Cinematography 50 16 76 24 31 61 
Sound recording 1,757 2,329 282 296 290 216 
Broadcasting 2 0 0 0 2 0 
Others 102 1,315 853 743 607 411 
Total 22,019 39,511 24,357 22,721 20,988 21,836 
Source: Department of Inte llectual Property, Annual Reports 2009 and 2010. Viewed at: http://www. ipthailand.go.th.  
156. In 2010, the Cabinet instructed the Intellect ual Property Department to undertake further 
study into making it a criminal offence to buy co pyright-infringing material.  Among the amendments 
to the Copyright Act under consideration are to make  it an offence to buy pirated computer programs, 
sound recordings, audiovisual materials, and movi es, and for property owners to knowingly allow 
others to use the property for piracy.  Also proposed are exemptions from protection for non-
commercial use by the handicapped.127  The United States has cited Thailand's failure to progress on 
copyright law amendments as a reason for keeping it on the Priority Watch List in 2011.  Among the 
concerns are lack of progress on landlord liability, unauthorized camcording of movies in cinemas, and failure to implement the WIPO Internet Treaties.
128  The Thai authorities say the Government 
considers WIPO's Internet Treaties to be beneficial and is planning to amend copyright law to include 
some of the core content of the treaties and to k eep up-to-date with rapidly changing technologies. 
Trade marks 
157. The Trademarks Act B.E. 2534 (1991) remains unchanged since its amendment in 2000, 
which included national treatment and extended coverage to coloured  and three-dimensional marks.  
Owners of registered trade marks are granted protection for ten years;  registration may be renewed every ten years.  Trade marks that are identical or  similar to well-known marks may not be registered 
and those already registered may be revoked.  Thai and foreign owners may apply to have their marks 
officially recorded as well-known.
129  Also protected are service marks, certification marks, and 
collective marks. 
158. Applications for trade mark registration must be filed with the Department of Intellectual 
Property.  To qualify, a trade mark must be distin ctive, different from other registered trade marks, 
and not violate public order or morality.  Goods a nd services are classified  according to the Nice 
Agreement Concerning the International Classificatio n of Goods and Services for the Purposes of the 
Registration of Marks.  The number of trade mark applications in Thailand fluctuated between 33,000 
and 37,000 during 2005-10, while regi strations fell from over 27,000 to about 22,000.  (Table III.14).  
Thai applications and regist rations continue to exceed t hose of foreign applicants. 
                                                      
126 Natera (2008). 
127 Drafts are available (in Thai) from the Departme nt of Intellectual Property online information.  
Viewed at:  www.ipthailand .go.th [23 April 2010]. 
128 Office of the US Trade Representative (2011). 
129 Vachanavuttivong (2008). WT/TPR/S/255 Trade Policy Review 
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159. A draft amendment of the Trademark Act was comp leted in 2006.  It is being revised by the 
Council of State (the Government's legal advisory body) under instruction from the Cabinet, before 
consideration by the Cabinet and ultimately Parliame nt.  Proposed amendments include provisions for 
registering unconventional trade marks such as sound and scent marks.130 
Patents 
160. Thailand's patent law, the Patent Act B.E. 2522 (1979), amended in 1992 and 1999, grants 
national treatment to nationals of other countries th at are party to any international convention that 
Thailand has signed.  If a patent owner imports the patented products, this is considered as working 
the patent.  The Patent Act covers  inventions and designs, and produc ts and processes.  It includes full 
patents for inventions that are new, industrially a pplicable, and represent an inventive step; and petty 
patents, which do not require an inventive step.  Te rms of protection, applied from the date of filing, 
are 20 years for inventions, 10 years for designs, and 6 years for petty patents.131  Under the Patent 
Act, an invention is defined as any innovation or invention that creates a new product or process, or 
any improvement on a known product or process.  A product design is defined as any form or 
composition of lines or colours that gives a special  appearance to a product and can serve as a pattern 
for an industrial or a handicraft product. 
161. Under the Act (Section 9), the following u npatentable are:  naturally occurring 
microorganisms and their components, animals, plants  or extracts from animals or plants;  scientific 
or mathematical rules or theories;  computer progr ams;  methods of diagnosis , treatment or cure of 
human and animal diseases;  and inve ntions contrary to public orde r, morality, health or welfare. 
Table III.14 
Trade marks and patents, 2005-10 
 2005 2006 2007 2008 2009 2010 
T r a d e  m a r k s        
Total applications 36,423 33,572 33,555 35,422 36,087 37,656 
Thai 24,275 21,171 20,140 21,950 24,733 24,781 
Foreign 12,148 12,401 13,415 13,472 11,354 12,875 
Total registrations 27,445 24,115 24,640 21,941 22,483 21,830 
Thai 18,497 15,595 14,769 12,574 11,981 13,268 
Foreign 8,948 8,520 9,871 9,871 10,502 85,625 
Patents (inventions)       
Total applications 6,340 6,261 6,818 6,741 5,867 1,925 
Thai 891 1,040 945 902 1,025 891 
Foreign 5449 5,221 5,873 5,839 4,832 1,034 
Total patents granted 553 1,121 948 966 846 772 
Thai 62 118 118 62 59 48 
Foreign 491 830 1,003 904 787 724 
Patents (designs)       
Total applications 4,545 3,580 3,521 3,820 3,873 6,614 
Thai 3,367 2,524 2,533 2,736 3,171 2,648 
Foreign 1,178 1,036 988 1,085 702 966 
Total patents granted 769 757 876 1,219 1,164 1,332 
Thai 443 450 544 719 709 841 
Foreign 326 307 332 500 455 491 
Source: Information provided by the Department of Intellectual Property, directly, and Annual Reports 2009 and 2010 .  
 Viewed at:  http://www.ipthailand.go.th. 
162. Applications for patents must be submitted to th e Department of Intellectual Property. Patent 
applications for inventions plumme ted from over 6,000 per year at the start of the review period to 
about 2,000 in 2009, while for designs they were mo re or less steady at around 4,000, before surging 
                                                      
130 Information from the Thai authorities;  and Vachanavuttivong (2010). Draft amendments (in Thai) 
viewed at:  www.ipthailand.go.th [23 April 2010]. 
131 These terms of protection can be extended twice for periods of two years. Thailand WT/TPR/S/255 
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to well over 6,000 in 2010.  Approvals fluctuat ed at around 1,000.  Lack of resources in the 
department 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 a pplications in late 2010.132  
There were more foreign applica tions and approvals than Thai fo r inventions, but the reverse for 
designs.  Officials say this is because Thailand has a lower capacity for innovation, requiring it to be a 
technology importer, but greater capability in artistic creativity and design. 
163. The Intellectual Property Department 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 stake-
holders both inside and outside government.  The draft could include provisions to implement the 
2003 WTO General Council compulsory-licensing-for-e xport waiver under the Paragraph 6 system on 
TRIPS and public health.  It could also set up a separate industrial design act and streamline patent 
examination.  Officials say they expect it to be completed and submitted to th e Cabinet for approval in 
principle by the end of 2011.133 
Layout designs of integrated circuits  
164. The Protection of Layout Designs of Integrated Circuits Act B.E. 2543 (2000) says a layout 
design must be the designer's own work and must not be commonplace.  The layout design must be 
registered with the Department of Intellectual Prope rty.  Protection enters into force when the design 
is registered and a certificate is issued.  The certific ate is valid for ten years from the date of filing or 
the date of the first commercial exploitation, in or  outside Thailand, whichever occurs first, but no 
longer than 15 years from when the layout design was completed. 
Trade secrets 
165. Under the Trade Secrets Act B.E. 2545 (2002), undisclosed information is only protected if it 
is not generally known or readily accessible within th e business, if its secrecy makes it valuable, and 
if it is in the control of the information owners w ho have taken steps to keep it secret.  Generally, the 
Government has to keep secret an y confidential information it receives subject to limited exceptions.  
The protection lasts as long as the information remain s confidential.  Test data for pharmaceutical and 
agricultural chemicals products qualify, but Thai law does not give data "exclusivity";  the law does 
not prevent the data from being used for the approval of generic versions. 
166. The number of industrial and commercial tr ade secrets notified to the Department of 
Intellectual Property tumbled from 1,801 in 2005 to 254 in 2010.134  The reasons for the low uptake 
are unclear, although officials say it could be because  of different perceptions about notification and 
its value in protecting secrets.  Various sources (inc luding the previous Review of Thailand) suggest 
the private sector might fear notified secrets are insecu re, or they might view it as weak because of the 
low number of injunctions or cases brought to the In tellectual 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 
                                                      
132 Economist Intelligence Unit (2010a). 
133 Information from the Thai authorities; dr aft amendments in Thai are viewed at:  
www.ipthailand.go.th [23 April 2010].  Some of th e proposed changes are discussed in Vachanavuttivong 
(2010). 
134 Department of Intellectual Property (2010) and (2011). WT/TPR/S/255 Trade Policy Review 
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protecting the secret or "commercializing" it.  The Intellectual Property Department is trying to 
encourage the private sector to use the notification system.135 
Geographical indications 
167. Thailand's Geographical Indications Act B.E.  2546 (2003) protects domestic and foreign 
geographical indications in Thailand and includes terms associated with places as well as the place 
names themselves 136, allowing protection, for example, for fragrant rice such as Hom Mali (Jasmine). 
168. Once a term is registered, similar or identical 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 
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 pub lic order, morals or policy.  The 
law allows for fines of up to B 200,000 for violations. 
Table III.15 
Geographical indications, 2005-10 
 2005 2006 2007 2008 2009 2010 
Total applications 15 12 14 13 7 10 
Thai 14 9 12 10 5 10 
Foreign 1 3 2 3 2 0 
Total registrations 3 8 8 1 9 0 
Thai 2 7 6 1 7 0 
Foreign 1 1 2 – 2 0 
 
Source: Department of Inte llectual Property , Annual Report 2009  and 2010.  
169. The Department of Intellectual Property regist ers Thai and foreign terms and issues permits 
for individuals or compani es to use Thai-owned terms.137  Registration is valid until it is cancelled.  
Among foreign terms registered are Champagne (Fra nce), the first European geographical indication 
to obtain registration;  Cognac (France);  Brunello di Montalcino and Prosciutto di Parma (Italy); Scotch Whisky (UK); and Pisco (Peru).  Register ed Thai geographical indications include fruits, 
coffee, wine, seafood, roast pork, and fragrant rice.  According to the authorities, the low number of 
registrations compared with applications reflect s the time needed to handle registration and the 
department's staffing constraints.
138 
Protection of plant varieties 
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 plan t 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 
                                                      
135 Information from the Thai authorities; and Chokw aranun (2010). This article, which is advice for 
companies preparing litigation, recommends six actions to demonstrate to the court that the company has made 
an effort to keep the information confidential; but it does not consider notification to the department to be 
significant enough to include in the list. 
136 Tanasanti (2007). 
137 Department of Intellectual Property online information (in Thai).  Viewed at: www.ipthailand.go.th 
[24 April 2010)] 
138 Information from the Thai authorities; Tanasanti (2011);  and Economist Intelligence Unit (2010a). Thailand WT/TPR/S/255 
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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.  Thaila nd is not a member of International Union for the 
Protection of New Varieties of Plants (U POV), and has not signed its Convention. 
Traditional knowledge 
171. The first form of traditional knowledge protect ed by law was traditional medicine, under the 
Protection and Promotion of Traditional Thai Medicinal Intelligence Act, B.E. 2542 (1999), 
administered by the Public Health Ministry.  In 2002, the Department of Intellectual Property started 
registering traditional knowledge more broa dly through an announcem ent citing a general 
administrative law.139  The department recently studied the protection of traditional knowledge and 
artistic expressions, including a possible new law.  A summary of the study, which included 
consultations with focus groups was published in  2008 and includes a range of views on whether 
ownership should be national or by local communities.140  In June 2007, Thailand was one of 
50 signatories of the Bandung Declaration on th e Protection of Traditional Cultural Expressions, 
Traditional Knowledge and Genetic Resources, an  outcome of the Asian-African Forum on 
Intellectual Property and Traditional Cultural Expressions, Traditional Knowledge and Genetic 
Resources.141 
Table III.16 
Traditional knowledge notifications, 2006–10 
 2006 2007 2008 2009 2010 
Local knowledge      
Bangkok 13 13 5 91 0 
Provincial 186 105 112 701 70 
Total local knowledge 199 118 117 792 70 
Folklore      
Bangkok 0 0 0 3 0 
Provincial 1 16 1 13 0 
Total folklore 1 16 1 16 0 
Total 200 134 118 808 70 
Source: Department of Inte llectual Property , Annual Report 2010.   Viewed at:  http ://www.ipthailand.go.th. 
(b) Parallel imports 
172. Parallel imports are allowed for copyrighted or trade marked goods.  By contrast, a patent 
right holder has exclusive control over imports of the patented product or a product produced by the 
patented process.  However, that right expires (is exhausted) if the patent owner has allowed a third 
party to produce or sell the product, including the ri ght to prevent parallel imports.  Right holders of 
integrated circuit designs also have an ex clusive right to import the protected design. 
                                                      
139 Department of Intellectual Property online information (in Thai).  Viewed at:  
http://www.ipthailand.go.th /ipthailand/index.php?option=com_docma n&task=doc_download&gid=57&Itemid=
377 [24 April 2010]. 
140 Department of Intellectual Property online information (in Thai).  Viewed at:  
http://www.ipthailand.go.th /ipthailand/index.php?option=com_docma n&task=doc_download&gid=57&Itemid=
377 [24 April 2011]. 
141 WIPO Intergovernmental Committee on Intellectual Property and Genetic Resources, Traditional 
Knowledge and Folklore document WIPO/GRTKF/I C/11/12;  and Economist Intelligence Unit online 
information. Viewed at:  http://country.eiu.com/Thailand [26 April 2011]. WT/TPR/S/255 Trade Policy Review 
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(c) Government use and compulsory licensing 
173. Thailand's use of compulsory licensing for HIV/AIDS, heart disease, and cancer drugs142, has 
attracted considerable attention on all sides of  the debate, both inside and outside Thailand.143  
Seven compulsory licences for medicines were issued  during 2006-08, under Se ction 51 of the Patent 
Act and Article 31 of the TRIPS Agreement, for non-commercial use under the Government's policy 
of providing affordable universal healthcare.  On e was for heart disease, two for HIV/AIDS, and four 
for cancer.144  The medicines were imported from Indi a because the Government Pharmaceutical 
Organization, the supplier specified in the com pulsory licences, could not manufacture them.  In 
August 2010, the Government announced that it w ould extend the compulsory licences for the two 
HIV/AIDS medications until their pa tents expire in 2012 and 2016.145  In return for the compulsory 
licences, the Government Pharmaceutical Organization offered to pay royalties of 0.5–5.0% of total 
sales value to the right holders; the lower offers were for three medicines (Efavirenz, Kaletra, and 
Clopidrogel) and were initial figures that could be negotiated.  The Government said the compulsory 
licences would not affect the market for patented medicines since the generic versions would go to patients who could not afford the pate nted versions.  It has offered to buy the patented versions if the 
price is no more than 5% above the generic price, an offer that has not be taken up.  The cheaper 
drugs would also not be exported.
146  Since the measure took effect, the prices of Efavirenz and the 
Lopinavir-Ritonavir combination have  fallen 3.4 and 6.4-fold respec tively, and the number of people 
receiving Efavirenz has increased from 4,539 to 29,360 and for Lopinavir/Ritonavir from 39 to 6,246.
147   
174. The compulsory licences were issued by the Public  Health Ministry in 2006-08.  During that 
period some trading partners expressed concerns a bout compulsory licensing.  The United States, was 
concerned about the way it was implemented, referri ng to a lack of transparency and due process, and 
the potential for increased use.148  The European Commission was also concerned about the way 
compulsory licensing was used.149  In 2007 and 2008, the Public Health Ministry released two white 
papers defending the use of compulsory licences fo r two anti-retroviral and four cancer treatment 
drugs.150  The governments that took office after the 2007 election did not issued any new licences, 
the two extensions were under existing licences.  Acco rding to the authorities, they tried in vain to 
negotiate with the patent holders, even though th ey did not have to do so, and that in general 
                                                      
142 Compulsory licensing allows someone to produce (or supply) a patented product or use a patented 
process without the consent of the patent owner.  In Thailand, the licences were issued to the government itself, 
i.e. the Government Pharmaceutical Organization, which has used the li cence to import all generic versions 
from India, but was reported to be preparing to manufacture anti-retroviral  medicines Efavirenz and 
Lopinavir/Ritonavir in 2011 ( Bangkok Post , 27 September 2010). 
143 See, for example, Rungpry and Kelly (2008);  and Bangkok Post , 7 February, 5 March, 2 and 5 
May, 21 August 2009 , 15–17 June, 3 August, 27 September, 27  December 2010, and 18 January 2011. 
144 For cardiovascular disease:  Cl opidogrel (trade name Plavix). For HIV/AIDS:  Efavirenz (trade 
name Stocrin) and Lopinavir/Ritonavir (trade name Kaletra).  For cancer:  Docetexel (trade name Taxotere), 
Letrozole (trade name Femara), Erlotinib (trade name Ta rceva), and Imatinib (trade name Glivec).  See Ministry 
of Public Health and National Health  Security Office (2007) and (2008). 
145 The Bangkok Post , 15 June 2010, reported the extension, and said that patents on Efavirenz will 
expire on 31 January 2012 and on L opinavir/Ritonavir on 4 December 2016. 
146 Ministry of Public Health and National Health Security Office (2007) and (2008). 
147 Bangkok Post , 15 June 2010; and Economist Intelligence Unit (2010a). 
148 See, for example, USTR (2007);  and Economist Intelligence Unit (2010a). 
149 European Commission (2009);  and Economist Intelligence Unit (2010a); 
150 Ministry of Public Health and National Health Security Office (2007) and (2008). Thailand WT/TPR/S/255 
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compulsory licensing remains an option to be used as a last resort.151  The latest U.S. Section 301 
reports continue to cite compulsory licensing as a cause for concern, and urge Thailand to negotiate 
with all sides meaningfully and transparently, includ ing with rights holders, in order to deal with 
health issues while encouraging innovation.152 
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 typ es 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 application was submitted, whichever is later.
153  In addition, Section 51 of the 
Patent Act allows licences to be granted for govern ment use, for example to carry out any service for 
public consumption or to prevent or relieve a sever e 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. 
(d) Enforcement 
176. Thailand's efforts to tackle piracy and counte rfeiting continue, but its major trading partners 
are still concerned about judicial weaknesses leading to a lack of successful prosecutions, and high 
levels of  piracy.  Piracy in Thailand includes illegal downloading from the Internet, and cable and 
satellite signal piracy, in addition to more trad itional complaints about CDs, DVDs, camcorder 
recording of cinema screenings, disc-based softwa re, and fake designer goods.  According to the 
USTR, this is an important reason for keeping Tha iland on its Section 301 Priority Watch List since 
2007.  The EU has also listed Thailand as one of f our Category 2 priority countries (ranked according 
to perceived harm to the EU's competitiveness) be cause "enforcement remains weak in general and 
some areas seem to have deteriorated" such as civil, criminal, and customs procedures.154  In response, 
the Government cites removal from the US Priori ty Watch list as one of its motives for clamping 
down on piracy.  It was hoping to be moved back to the non-priority list in April 2011155, but that did 
not happen.  The Government also considers its enfo rcement efforts to be consistent with its Creative 
Thailand and Creative Economy projects.  In its Prior ity Watch List citation, the United States praises 
the Government for a continued commitment to im prove protection and enforcement, the various 
"Creative" and public awareness projects, and partnership activities with the United States.156  
177. In 2009 the Government set up the National Committee on Intellectual Property Policy, 
chaired by the Prime Minister, with various sub-committees and working groups dealing with 
investigation and suppression, and publ ic relations, awareness, and education (including in the school 
curriculum).  Represented on the committee are the Intellectual Property, Police, Special 
Investigations and Customs departments, and the Pub lic Attorney and Intellectual Property court.  An 
action plan aimed specifically at removing Thailand  from the US Priority Watch List covers:  law 
                                                      
151 Bangkok Post , 2 May 2009 and 15 June 2010.  These reports also say that in 2009 the Government 
decided that it would not issue new licences, but there has been no official annou ncement and the authorities 
deny that this is official policy. 
152 Office of the US Trade Representative (2011). 
153 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. 
154 Office of the US Trade Representative (2011);  Department of Intellectual Property (2010), which is 
also the source for much of the information on government actions in this section;  and European Commission 
(2009). The 2009 report added the United States and Canada among the EU's Category 3 priority countries. 
155 Economist Intelligence Unit (2010a). 
156 Office of the US Trade Representative (2011). WT/TPR/S/255 Trade Policy Review 
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enforcement;  revising legal procedures taken ag ainst intellectual property infringement; patent 
protection;  eradication of intellectual property in fringement on the Internet;  legal measures;  and 
cooperation with the private sector. 
178. Raids involving intellectual property officials and the police continue against manufacturers 
and sellers of pirated products (Table III.7) in 2009,  two CD manufacturing factories were raided in 
two provinces on the outskirts of Bangkok, and a CD and DVD copying operation was raided at a 
housing estate called Sue Trong (meaning "Honest").  In 2010, the enforcement agencies focused on 
ring-leaders and major counterfeiters nationwide, with actions taken against manufacturers and well-
known outlets.  They have held well-publicized  ceremonies destroying the counterfeit products, 
including in Phuket.  The Department of Inte llectual Property has introduced numerous campaigns 
and events under names such as "Stop Piracy", "Lov e Thailand, Use Genuine Products" and "IP Spy".  
It also helps small and medium-sized companies to obtain discounted software packages to promote 
the use of licensed software.  The words of a highly-revered monk, Luang Pho Khoon, have been 
adopted as a slogan for a 2011 campaign, "intellect ual property infringement is a sin", through mass 
media advertising and merchandising.157  
Table III.17 
Suppression of intellectual property rights violations, 2006-10 
Legislation 2006 2007 2008 2009 2010 
Copyright Act       
Arrests 6,459 4,614 3,215 3,781 2,487 
Materials seized (items) 1,704,970 2,228,348 2,485,679 3,099,592 2,241,202 
Trademark Act       
Arrests 3,100 2,495 2,697 3,826 2,347 
Materials seized (items) 1,105,629 1,472,813 946,262 2,168,887 1,970,547 
Patent Act       
Arrests 4 4 1 5 2 
Materials seized (items) 5,208 10,045 1 46,461 513 
Cassette Business and Television Devices Act      
Arrests 12 35 10 1 15 
Materials seized (items) 7,781 34,830 4,374 3,595 35,446 
Customs Act      
Arrests 222 628 540 667 588 
Materials seized (items) 862,607 1,332,319 1,328,975 473,858 295,761 
Total      
Arrests 9,797 7,776 6,463 8,280  5,439 
Materials seized (items) 3,686,195 5,078,355 4,765,291 5,792,393 4,543,469 
Source: Department of Inte llectual Property , Annual Report 2010 .  Viewed at:  http ://www.ipthailand.go.th. 
179. Part of the responsibility for enforcement lies with the Customs Department, whose officials 
may seize imported or exported goods  that infringe copyrights or trade marks at the border, when 
asked by the rights holders or if they suspect pir acy.  Customs jurisdiction is not confined to border 
points.  If they suspect that pirated or counterfeit goods are being smuggled, customs officials may 
invite rights owners to inspect the goods, and join t inspections take place regularly at Klong Toey 
Port.  In order to strengthen border enforcement,  the Customs Department has proposed amending the 
Customs Act B.E. 2469 (1926), last emended in 2005,  to empower customs officers to inspect goods 
in transit, and transhipments, and to broaden the scope of border enforcement to cover all intellectual 
property rights. 
180. Coordination has been improved since a Dece mber 2002 Memorandum of Understanding was 
signed on the Cooperation of the Relevant Governme nt Agencies on the Enforcement of Intellectual 
Property Rights.  The Ministry of Commerce also signed a memorandum of understanding with a number of private-sector representatives and law-enfo rcement groups in August 2006, to coordinate 
                                                      
157 Information from the Thai authorities;  and Economist Intelligence Unit (2010a). Thailand WT/TPR/S/255 
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efforts and cooperation.158  In August 2010, inter-agency coope ration was strengthened with a new 
regulation from the Prime Minister's Office.  Th is set up a new committee of senior officials from 
20 agencies tasked with using every me ans available to handle enforcement. 
181. The Intellectual Property and International Trade (IPIT) Court was set up in 1997 as a 
separate specialized court of original jurisdicti on covering other trade issues, such as anti-dumping 
measures and countervailing duty, as well as intellectua l property.  Its purpose is to foster a fair, 
speedy, friendly, and equitable atmosphere for settling trade disputes and to enforce intellectual 
property rights effectively.  It employs specially trained career and associate judges.  It has its own 
rules and procedures to speed-up court cases, such as  continuous hearings w ithout adjournments.  It 
introduced procedures that were new to the Thai le gal system to prevent the defendant frustrating the 
process of justice by destroying the subject-matter of an action or documents or other relevant 
evidence.  It offers equitable re medies and preliminary injunctions.159  The court completed hearing 
6,612 intellectual property cases in 2009 (6,874 in 200 8).  Most involved trade mark violations 
(2,166) and copyright infringements (2,145).  Only te n involved patents.  Court procedures have been 
shortened to 6-12 months.160  Generally a fine is imposed and the goods are destroyed.  But some 
trading partners are dissatisfied with the results.  An EU report in 2009 maintains that a number of 
weaknesses remain, including inadequate and over-lengt hy civil and criminal procedures, rare use of 
injunctions, a shortage of experienced judges, burdensome evidence required by Customs and, 
ultimately, a lack of political will and cases of corruption in enforcement in general.161 
182. Private sector business lobbies continue to expr ess concern about the extent of piracy in 
Thailand although they also recognize some significant  reductions such as in illicit computer software 
and the production of pirated optical discs.  The International Intellectual Property Alliance (IIPA) 
claimed that piracy cost businesses US$382.9 million in 2009;  in 2011, it reversed its earlier 
recommendation to move Thailand down from the Priori ty Watch List to the non-priority list.  It 
complained that optical disc piracy remained wide spread, but said that production by larger Thai 
factories has declined, the supply replaced by im ports from other countries and production by small, 
home-based operators.162  According to the Business Software Alliance, the percentage of software 
that is pirated remains high, but declined from 80% in 2005 and 2006 to 73% in 2010, compared with a 60% average for the Asia Pacific region in 2010.  To put this in some perspective, the estimated 
US$777 million commercial value of the pirated soft ware put Thailand about 15th in the world in 
2010, after the three major North American countries, five large EU countries, China, Russia, Brazil, 
India, Japan, and Indonesia, although the developed countries' piracy rates are estimated at around 
20-30% of installed software.
163  Thai officials say that Thailand has also been praised for the four-
year decline in software piracy, which is attributed  to greater levels of intellectual property rights 
awareness and protection. 
                                                      
158 An important aspect of the memorandum is the obligation it imposes on department stores and 
landlords.  When the Department of Intellectual Property advises them that a tenant has been prosecuted for 
intellectual property infringement, they must immediately terminate the tenant's lease.  Failure to do so could 
lead to civil liability for land lords and tenants alike.  Similar measures have been partly successful in China and 
Malaysia but in Thailand pirated software, music, and films remain easily available (Economist Intelligence 
Unit, 2010a).  The proposed amendment to the Copyright Act would make it an offence for landlords to knowingly allow tenants to use the property for piracy. 
159 Ariyanuntaka (2010); see also WTO (2008). 
160 Economist Intelligence Unit (2010a). 
161 European Commission (2009). 
162 International Intellectual Property Alliance (2011);  and Economist Intelligence Unit online 
information.  Viewed at:  http://cou ntry.eiu.com/Thailand [26 April 2011]. 
163 Global Software Alliance (2010) and (2011). WT/TPR/S/255 Trade Policy Review 
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183. According to the International Intellectual Pr operty Alliance, the main problem with the 
courts is lenient criminal sentences that are not severe enough to be a deterrent, for example minimal 
fines, no custodial sentences, suspended imprisonmen t, or custodial work orders, even for repeat 
offenders, and a reluctance to prosecute manage rs or landlords instead of small distributors.164 
                                                      
164 International Intellectual Property Alliance (2011).