Thailand: Proposed temporary reduction of customs duty surcharge for inadvertent underpayments

The relief is provided in response to the coronavirus (COVID-19) pandemic.

The relief is provided in response to the coronavirus (COVID-19) pandemic.

The Thai Cabinet approved a draft ministerial regulation that would allow a reduction of the customs duty surcharge that otherwise would apply, provided that the customs duty underpayment is resolved within a specific time period. The relief is provided in response to the coronavirus (COVID-19) pandemic.

Currently, underpayments of customs duties attract a 1% per month surcharge. However, if an importer or exporter knows that it has underpaid the customs duty and voluntarily pays the outstanding amount, a reduced surcharge can apply, but is granted on a case-by-case basis. 

The draft regulation proposes a reduction of the surcharge imposed on an importer or exporter that has underpaid an amount of customs duty (there was no intention to evade payment) and makes up the difference and pays the outstanding amount by a certain date. The surcharge reduction is to be available at a rate of 0.25% per month, as calculated from the full or the additional amount of customs duty paid from the day goods were released from customs custody or the date of exportation until the date of customs duty payment.

The surcharge relief is effective from the day after it is published in the official gazette until 30 September 2021.
 

Read a May 2021 report [PDF 99 KB] prepared by the KPMG member firm in Thailand

 

 

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