| Document symbol WT/TPR/M/326/Add.1/Rev.1 | Document date 08/04/2016 | Doc # 16-1995 | Access level Public |
TRADE POLICY REVIEW
THAILAND
MINUTES OF THE MEETING
Revision
Chairperson: H.E. Mr. Atanas Atanassov Paparizov (Bulgaria)
This document contains the advance written questions and additional questions by WTO Members, and replies provided by Thailand.1
Organe d'examen des politiques commerciales
24 et 26 novembre 2015
EXAMEN DES POLITIQUES COMMERCIALES
THAÏLANDE
COMPTE RENDU DE LA RÉUNION
Révision
Président: S.E. M. Atanas Atanassov Paparizov (Bulgarie)
Le présent document contient les questions écrites communiquées à l'avance par les Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par Thaïlande.1
Órgano de Examen de las Políticas Comerciales
24 y 26 de noviembre de 2015
EXAMEN DE LAS POLÍTICAS COMERCIALES
TAILANDIA
ACTA DE LA REUNIÓN
Revisión
Presidente: Excmo. Sr. Atanas Atanassov Paparizov (Bulgaria)
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por Tailandia.1
PART I: QUESTIONS ON THE SECRETARIAT REPORT ( WT/TPR/S/326 )SUMMARY
Page 9 (Para 8)
Question(s): As we observed that several safeguard and anti-dumping measures have been adopted against steel products during the review period, we would like to know how did Thai government ensure the procedural transparency while applied these measures?
(Chinese Taipei) Anti-dumping and safeguard proceedings of Thailand are set out to comply with all rights and obligations under the WTO Agreements. Both Anti-dumping and Safeguards Acts enable importers, exporters and other interested parties the opportunity to present their opinions with supporting evidence. Non-confidential version of information regarding the proceeding will be made available to all other interested parties with opportunity to respond to the claim. In addition, in accordance with the obligations under Article 16 of the Anti-dumping Agreement and Article 12 of the Safeguards Agreement, Thailand consistently and promptly submits notifications with regards to both measures. |
Page 10 (Para 11)
Question(s): As we know that foreign companies who is interested in participating Thailand government procurement projects is obligated to register on e-GP system for the e-market and e-bidding methods. But the criteria for e-GP registration is relatively difficult for foreign companies such as having Thailand Tax number and complete company registration from Ministry of Commerce, Thailand in advance. Therefore, we would like to inquire that whether Thailand ever considers reducing the entry barriers for foreign companies who are interested in participating the e-GP system?
(Chinese Taipei) The e-GP registration system is applied to every supplier who is interested in participating in the e-GP system, either Thai companies or foreign companies. |
Pages 10-11, paragraphs 15 and 16: The Secretariat's Report notes that Thailand will pursue several measures to increase domestic consumption and investment, including income transfer programs and other fiscal stimulus. Please clarify whether Thailand has plans to implement new subsidies to encourage consumption or support farmers.
(US) Thailand does not plan to implement any new subsidies. However, we have estimated that the drought will be more excessive in the next year since the impact of climate changed so, we may focus on the rural development and employment. |
1 ECONOMIC ENVIRONMENT
1.3 Main Macroeconomic Policy Developments
1.3.1 Monetary and exchange rate policy
Page 17, paragraph 1.8: In addition to the recent relaxation of capital outflow controls, please clarify whether Thailand is considering other measures regarding capital flows.
(US) The Bank of Thailand has recently announced relaxation plan on capital controls and is now under implementation period of such plan. The BOT's capital flows relaxation plan consists of (1) the relaxation on foreign exchange regulations to facilitate residents' holdings of foreign assets as well as to increase the participation of non-banks in foreign exchange business and (2) the relaxation on measures to prevent Thai baht speculation in order to increase flexibility for non-residents in borrowing Thai baht from domestic financial institutions. For further details, please see https://www.bot.or.th/Thai/PressandSpeeches/Press/News2558/n2358e.pdf. |
State-owned Enterprises (SOE's)2
Referring to 1.4.3 in the Report by the secretariat, State enterprise reforms are considered vital to upgrading Thailand's growth potential.
What are the plans and timeline to complete the transition from concessionary agreements to a licensing framework in the telecommunication sector?3
(Norway): Telecommunications industry is in the transition period from concessionary agreements to a licensing framework. The National Broadcasting and Telecommunications Commission (NBTC) was established in 2010 as a single converged regulator for telecoms and broadcasting sectors. NBTC is responsible for licensing for the telecom operators and the allocation of broadcasting frequencies. The last concession agreement in the telecommunications sector will expire in 2018. Currently, government is attempting to set up the neutral company to manage and oversee the telecommunication infrastructures of the country. This requires the dispute resolution of telecommunications infrastructure assets. |
2 TRADE AND INVESTMENT REGIME
2.3 Trade Policy Formulation and Objectives
Page 28, table 2.1
Thailand notes that it is seeking to develop an agricultural futures exchange. What products will be traded on the exchange and when is this expected to commence?
(Australia) The Repeal Act of the Agricultural Futures Trading Act B.E. 2542, B.E. 2558 (2015) took effect on 6 November 2015. Pursuant to the Repeal Act, the Agricultural Futures Exchange of Thailand (AFET) will be merged with the Thailand Futures Exchange (TFEX) . The merger process under the Repeal Act requires TFEX to launch its maiden agricultural futures trading within five months from 6 November 2015. Following the launch, AFET will wind down its trading and will be dissolved by 6 February 2017 at the latest. Natural Rubber Ribbed Smoked Sheet No. 3 (RSS No. 3) will be TFEX's initial product to be traded on the exchange. For more information, please visit http://www.afet.or.th/. |
Part II. Trade and Investment Regime: Trade Agreements and Arrangements, Regional Trade Agreements: paragraph 2.16, page 31:
It is noted that an RTA was signed with Chile in 2013 but had not yet been entered into force.
Could Thailand indicate the status on the Thailand-Chile FTA, indicate when the text of the FTA will be released, and when the agreement is expected to enter into force?
(Canada) Thailand-Chile FTA has entered into force on 5 November 2015. The text of the Agreement can be found at: http://www.dtn.go.th/files/FTA/TCFTA/TCFTA_-_Eng_-_00_00.pdf. |
Part II. Trade and Investment Regime: Trade Agreements and Arrangements, Regional Trade Agreements: paragraph 2.17, page 31-32:
It is noted that Thailand is in negotiations with India on the remaining goods tariff lines and on services and investment.
What is the status of the Thailand-India negotiations and is there an expected timeframe for the conclusions of negotiations?
(Canada) The FTA between Thailand and India is a Comprehensive FTA that includes Trade in Goods, Trade in Services and Investment. Currently, the FTA negotiations have been progressed more than 90 percent. Both countries will notify the scope of the FTA after the negotiation has been concluded. No time-frame. |
It is noted that Thailand is undertaking an impact assessment on its possible participation in the TPP RTA negotiations.
What is the status of the assessment and will a final report be made public?
(Canada) Currently, Thailand is in the process of conducting a comprehensive study and carefully assessing the impacts of joining the TPP Agreement in all aspects during the period while TPP member is undergoing internal procedure to ratify the Agreement. The final study report will be made public when it is completed in 2016. |
2. TRADE AND INVESTMENT REGIME
(2) TRADE AGREEMENTS AND ARRANGEMENTS
(iii) Preferential trade agreements
Page 33 (Para 2.23)
Could you elaborate the above duty-free quota-free preference and related technical support that Thailand has provided to LDCs countries during the review period, particularly for its neighboring countries in line with the AEC integration?
(Chinese Taipei) In accordance with Thailand's Duty Free Quota Free scheme, Thailand exempts customs duties and quota for 6,998 goods (at 8-digit HS code) from the all least developed countries as classified by the United Nations provided that a good is originating in the exporting beneficiary country, consigned directly to Thailand and has a certificate of origin. Goods will be considered as originating if a good is wholly obtained or produced in the exporting beneficiary country or it has a qualify value content of not less than 50 percent of FOB value and the final process of production is performed within the exporting beneficiary country. Due to the fact that Duty Free Quota Free scheme Focuses only on providing market access for the least developed countries by eliminating customs duties and quota for their goods. |
2.5 Foreign Investment Regime
Page 35, paragraph 2.27
The report notes the government is considering how to amend the 1999 Foreign Business Act to make it more investor-friendly, promote investment and enhance transparency.
What steps will the government take to improve the investment environment and which sectors will these amendments be made to? What is the indicative timeframe for these amendments?
(Australia) The Ministry of Commerce fully understands that foreign investors are concerned with the policy on the FBA amendment which may affect business operation of foreign investors. The Ministry of Commerce would like to assure that Thailand has clear policy to promote foreign investments and this law shall not be an obstacle to foreign investments. With the issuance of the Ministerial regulation prescribing service business not subject to application for Foreign Business Permission B.E. 2556 (2013), Securities business and other businesses under the law on securities and securities exchange, Derivatives business under the law on derivatives, and Serving as a trustee under the law on trust for transactions in capital market are now excluded from (21) of List 3 annexed to the Foreign Business Act, B.E. 2542 (1999) . |
Does Thailand have any specific plans to review the regulatory regimes governing key sectors such as professional services, financial services, transport and education to promote more competition and enhance productivity and innovation?
(Australia) Securities and Exchange Commission of Thailand (SEC) has reviewed securities business licensing regime and the related qualifications & requirements in order to enhance flexibility and variety of business providers in Thai capital market in response to changing business environment and increasing competition. The review is expected to finalise by next year. The SEC has amended the regulations to enhance product variety in Thai capital market; (1) allowing mutual fund to invest in non-investment grade/ unrated securities with no limit but diversification (the amended regulation for retail fund has been effective in Q2/2015) and (2) to allow fund for accredited (or sophisticated) investor to invest in more variety of securities (expected to finalise by 2016) . In addition, the SEC has recently launched new regulation for registered equity crowdfunding business aiming at promote market-based financing for SMEs and start-up companies. The regulation has been in effect since May 2015 |
Investment incentives are offered by the Board of Investment (BOI) with a new incentives scheme coming into effect in January 2015 (section 3.4.2.1) ."
Taking into account the information set out in paragraph 2.30, we would like to request Thailand to provide an update of the new program implemented, including their characteristics, requirements to be met to be a beneficiary and, if possible, a reference to the benefits that have been achieved
(Mexico) The BOI's new incentive scheme which has come into effect from 1 January 2015, aims to encounter the rapid changes of the current and future economic situations, to enhance Thailand's competitiveness and to achieve sustainable development. Moreover, the new scheme is in line with the direction of Thailand's development under the National Economic and Social Development Plan. Investment activities stipulated by BOI, which covering all sectors, are eligible for investment promotion and the following incentives are granted: • Exemption of import duty on machinery. • Exemption of import duty on raw or essential materials used in manufacturing export products for 1 year (extendable) . • 3-8 year corporate income tax exemption. • Other non-tax incentives such as permission to own land, facilitation for visas and work permits for foreign experts. However, the results from the new incentive scheme is too early to evaluate, since it has recently come into force in January 2015. |
3 TRADE POLICIES AND PRACTICES BY MEASURE
Para 3.2 Page 38
Is there a foreseen date for completion of the transposition of the binding commitments to SA2012?
(Mexico) Thailand has undertaken domestic transposition to HS2012 and already implemented HS2012 since 1 January 2012. |
Para 3.3. Page 38
Question: Are there any additional future actions that are scheduled for the operation of the AEO in Thailand?
(Mexico) For AEO programme in Thailand, AEO Standard Division, Customs Standard Procedures and Valuation Bureau plans to review and extend the benefits as well as to enhance cooperation with other authorities regarding the operation on AEO programme. Moreover, it also plans to extend the number and categories of operators. With regard to Mutual Recognition Arrangement, the cooperation among ASEAN Member States; for example, experience exchange on AEO programme and MRA negotiation, are being carried out. |
Page 39, paragraph 3.7
The report highlights that language used in government procurement tenders excludes foreign products, and there irregularities in government procurement practices persist.
Given recent comments from senior Thai government figures on the need to stamp out corruption, can Thailand elaborate on the efforts of the government to prevent irregularities in this area?
(Australia) The Regulations of the Office of the Prime Minister on Procurement B.E. 2535 (1992) applies to all central government agencies. However, state-owned enterprises and local authorities have their own procurement regulations. All central government agencies must abide by the Regulations of the Office of the Prime Minister on Procurement B.E. 2535 (1992) . The suppliers can file complaints with Government Procurement Committee, if they find irregularities in government procurement practices. Thailand is currently reforming the new Public Procurement Act which will apply to all central government agencies, state-owned enterprises and local authorities. |
Please provide the details on any amendments to the procurement regulations now under consideration by the government, including amendments which will enable foreign products and organisations to compete in tenders.
(Australia) Thailand is in the process of proposing draft Public Procurement Act for the National Legislative Assembly's consideration and amendment. However, the new Public Procurement Act will increase more transparency, efficiency and widely open for competition. |
3.2 Measures Directly Affecting Imports
3.2.1 Customs clearance
3.2.1.1 Registration and documentation
Page 40, paragraph 3.10: The Secretariat's Report notes that in the period under review Thailand is shifting from the "gold card" scheme to an authorized economic operator system. The process to shift beneficiaries from the "gold card" scheme started in 2013. What is the status of the shift? Have all companies been transferred to the AEO program? What are the differences between the "gold card" scheme and the AEO program? Which companies are eligible to apply to the AEO program? What are the benefits to companies under the AEO program?
What is the status of the shift?
(United States) As from 2013, the beneficiaries of Gold Card Scheme are being shifted to the Authorized Economic Operator (AEO), if the gold card importers or exporters did not apply for AEO program, their gold card status expired on 1 October 2013. Those who applied for AEO prior to 1 October 2013 still have the rights under the Gold Card Scheme until the Customs Department approves them as AEO operators. In brief, there are 46 importers/exporters that are pending for the AEO approval. As a result, they still have the rights under Gold Card Scheme. |
Have all companies been transferred to the AEO program?
(United States) Refer to the answer No. 1, not all companies have been transferred to AEO. |
What are the differences between the "gold card" scheme and the AEO program?
(United States) Gold Card Scheme was one of the measures to facilitate import and export procedures. The Customs Department would grant the gold card status for importers or exporters with good record and reliable background. Meanwhile, AEO program is a measure to both secure and facilitate global trade. The Customs Department is aware of the global security supply chain. Thus, the Customs Department adopted the SAFE FoS by signing in Letter of Intent on May 9, 2006 to stimulate and express the intention to implement WCO SAFE FoS. For AEO program, its framework highlights on global trade security as well as the global trade facilitation. The Customs Department emphasizes on the security measure of the operators. To ensure that the operators are appropriate for AEO status, the operators shall provide necessary documents and prepare for the following process: • examination and verification applicants' qualification; • on-site validation visit. In this regard, the benefits of Gold Card Scheme and AEO program are rather similar. In comparison, here are the benefits of Gold Card Scheme and AEO program: Gold Card Scheme benefits AEO program benefits
• Importation Processing import procedures via "Green Line" A manifest is written off after the clearance of goods The goods are exempted from examination unless it is a random examination • Exportation Processing export procedures via "Green Line" The goods are exempted from examination unless it is a random examination • Drawback claims as well as tax and duty compensation claims are approved at the time of filing. • Other future privileges as determined by the Director-General. • Exemption from physical examination except other procedure/related laws otherwise stated or having reasonable suspicious. • In case of physical examination needed, the AEO cargo will be prioritized under special track provided. • In case of any doubt or controversial during the course of undertaking the Customs procedure or clearance, the operator can have a consultation process with the assigned competent officer or the customs committee at that Customs office to seek a solution. • In case that the goods sample(s) is required for laboratory analysis or assessment purposes before clearance of goods, the sample of AEO cargo will be taken and that shipment can be released before final determination except other laws or regulations pertaining customs otherwise stated. • Importation of goods in form of bulk cargo is not required to deposit the security. • The exported goods from Thailand will be recognized by the foreign Customs administrations through the Mutual Recognition Arrangement (MRA), which benefit to the clearance of goods in importing countries. • The privileges on re-export, transshipment, transit and duty drawback, duty compensation and duty free zone are simplified and enhanced as appropriate. • Instead of 5 normal year audit, the AEO Importer and exporter will be audited only for the last two years from the date of importation or exportation. • Customs incentives on legal proceedings will be simplified and enhanced as appropriate.
|
Which companies are eligible to apply to the AEO program?
(United States) The companies who wish to apply AEO shall prepare a complete application form and necessary supplement documents, the qualifications are as follows: Importer and Exporter Category • Being the juristic person registered in Thailand and having the paid-up capital not less than 5 million baht; • Having a stable financial status based on the profit shown in the financial statements certified by auditor and submitted to the Ministry of Commerce. With that regard, the applicant's business must gained profit for the last two accounting years retrospectively. Additionally, the applicant's financial status shall be certified by either the Federation of Thai Industries or the Thai Chamber of Commerce or the Thai National Shippers' Council or the Thai Airfreight Forwarders Association or the Thai Gold Card Importer & Exporter Association; • Carrying on its business related to import or export not less than three years and be able to undertake the customs procedure by electronic means according to the criteria prescribed by the Customs Department (e-customs), or hire the customs broker with AEO status or used to hire the licensed customs broker; • Having no customs offence record concerning smuggling according to Section 27 of the Customs Act B.E. 2469 (1926), the offence concerning document forgery and usage of such document according to the Thai Criminal Law. Thai Customs will retrospectively check the customs violation records for the last three years from the date of submission the AEO application form; • Having a control plan, a management and an assessment against the risks in doing safely business in accordance with the Guideline for the Security Measures in Supply Chain, details as attached to this Customs Notification; • Having an appropriate workplace for business and having the headquarters being located at the address as registered at the Department of Business Development, Ministry of Commerce; • Having never been revoked from the AEO status in the past three years from the date of submission. Customs Broker Category • Receiving a permission from Thai Customs to be a Customs broker or licensed Customs broker according to the Customs Notification No 76/2552 dated 14th October 2009; • Being the juristic person registered in Thailand and having the paid-up capital not less than 1 million baht; • Being a member of a customs approved association and dealing with customs clearance of goods, not less than 3 years; • Having a stable financial status based on the profit shown in the financial statements certified by an accredited auditor and submitted to the Ministry of Commerce. With this regard, the applicant's business must gained profit for the last three accounting years; • Having no customs offence record concerning smuggling according to Section 27 of the Customs Act B.E. 2469 (1926), the offence concerning document forgery and usage of such document according to the Thai Criminal Law. Thai Customs will retrospectively check the customs violation records for the last three years from the date of submission the AEO application form; |
• Being able to undertake the customs procedure by electronic means according to the criteria prescribed by Thai Customs (e-customs); • Having, at least, one person of full-time customs expert, certified by Thai Customs and having workers or employees that are registered as operating staff for clearance of goods in the number proportionate to their workload; • Having a control plan, a management and an assessment against the risks in doing safely business in accordance with the Guideline for the Security Measures in Supply Chain, details as attached to this Customs Notification; • Having an appropriate workplace for customs broker business, located at the address as registered at the Department of Business Development, the Ministry of Commerce; • Having Brokers' license or the authorization under the licensed customs broker scheme and having never been revoked in the last three years from the date of submission. |
What are the benefits to companies under the AEO program?
(United States) The benefits for AEO operators are as follows: • Exemption from physical examination except other procedure/related laws otherwise stated or having reasonable suspicious. • In case of physical examination needed, the AEO cargo will be prioritized under special track provided. • In case of any doubt or controversial during the course of undertaking the Customs procedure or clearance, the operator can have a consultation process with the assigned competent officer or the customs committee at that Customs office to seek a solution. • In case that the goods sample(s) is required for laboratory analysis or assessment purposes before clearance of goods, the sample of AEO cargo will be taken and that shipment can be released before final determination except other laws or regulations pertaining customs otherwise stated. • Importation of goods in form of bulk cargo is not required to deposit the security. • The exported goods from Thailand will be recognized by the foreign Customs administrations through the Mutual Recognition Arrangement (MRA), which benefit to the clearance of goods in importing countries. • The privileges on re-export, transshipment, transit and duty drawback, duty compensation and duty free zone are simplified and enhanced as appropriate. • Instead of 5 normal year audit, the AEO Importer and exporter will be audited only for the last two years from the date of importation or exportation. • Customs incentives on legal proceedings will be simplified and enhanced as appropriate. |
Page 41, paragraph 3.17
In the World Bank "ease of doing business" report 2016, Thailand was ranked 49th, down from 46th in 2015.
We would welcome advice on progress towards simplifying taxation structures, improving customs procedures and trade facilitation to promote ease of doing business, as well as amendment to the Customs Act.
(Australia) At present, the draft Customs Act, B.E. …, which contains provisions on the above-mentioned issues, has been approved by the Cabinet. The draft is now under consideration of the Office of the Council of State. |
Para 3.23
Question 1: With regard to the possibility of further unilateral cuts and simplification of the tariff structure, we would like to know whether progress has been made in the course of this year and if not the case, if Thailand could anticipate future developments.
Does Thailand have any plan to improve its tariff structure in this area?
(Mexico, Canada, Australia) The Ministry of Finance is in the period of reformation the import tariff structure for enhancing the ability of domestic entrepreneurs to compete and there are 2 phases. Phase1 is the reduction of import tariff structure for goods/products that cannot be produced by domestic manufacturers, such as machinery, tools and machinery supplies and this phase has been operated successfully since 30 December 2014. Phase 2 is the reduction of import tariff structure for goods/products that are not grouped in Phase 1. |
Questions 3: Please share the experience and introduce the problems encountered during the implementation of tariff reduction in the APEC List of Environmental Goods. For example, how many kinds of environmental goods are entitled to tariff reduction? How are the specific environmental products identified under six-digit tariff numbers?
(China) There are 3 major problems encountered during the implementation of tariff reduction in the APEC List of Environmental Goods. (1) The clarification of products. Most of the product's description is not practical for customs' administration (2) The mismatch between HS code and product's description identified in Annex C. (3) Not every of products under each HS code are environmental-related so it is difficult to convince stakeholders about reducing their tariffs. However, we will try to identify the specific environmental products with ex-out description under 8 digit HS code. |
Part III. Trade Policies and Practices by Measure: Measures Directly Affecting Imports Tariffs, Bound Tariffs: paragraph 3.28, page 46:
The non-comparability of Thailand's HS2002 and HS2012 nomenclatures is noted here with respect to Thailand's bound tariffs.
Can Thailand confirm whether applied rates have been raised to the bound rate or above the bound rate on any tariff lines where there has been a change (i.e., transposition) from HS2002 to HS2012?
(Canada) Transposition tariff lines from HS2002 to HS2012 have no effects on bound rate. |
3.2.2.6 Tariff-rate quotas
Para 3.30 Page 46
Additional information concerning the difference of criteria used for the purposes of quota allocation is requested, since the Secretariat's report notes that in some cases only certain groups of producers have access to quotas.
(Mexico) The quota allocation is subject to the concerning committees, quota and allocations unused quota of TRQ products are allocated to various types of importers by different quota administration methods. |
3.2.2 Tariffs
3.2.2.7 Special duties
Paragraph 3.32, page 47
Could Thailand elaborate on the compliance of these special fees and import bans with its WTO commitments, particularly the GATT 1994 Articles I, II, III, VIII and XI?
Page 47, paragraph 3.32: The Secretariat's Report states that Thailand's Investment Promotion Act allows its Board of Investment (BOI) to impose special fees on imports of goods deemed similar to those produced by BOI-promoted domestic commercial entities, although no recourse to this measure has taken place since 2004. Please explain whether Thailand intends to abolish the BOI's authority to impose such special fees on imports in the future.
(EU, US) Although the BOI retains its authority according to the Investment Promotion Act Article 49-50, this measure has not been exercised since 2004. |
Table 3.2 Products subject to import licensing and prohibition, 2015
page 48
The table in question mentions the following rationales as a basis for tariff quotas, import surcharges and non-automatic licensing with respect to certain goods: "stabilize price of raw material used for animal food" and "to be consistent with the need for production and domestic use". In our view, the said reasons are not completely in line with the Articles XI, XX and XXI of the GATT.
Question 1: Could Thailand please provide more detailed information concerning the mentioned grounds?
(Russian Federation) Import surcharge principles and non-automatic licensing comply with the commitment of Thailand under the WTO. |
Question 2: Please clarify what is meant by "import surcharges"? Please provide further details.
(Russian Federation) According to the Notification of the Ministry of Commerce on the importation of goods (No. 74) B.E. 2533 (1990) dated 7 March 1990, the import surcharge refers to an addition fee impose on import of fishmeal with protein content of more than 60%. However, since 1 January 1998 until now, the import surcharge rate on such product is 0 baht per metric ton. |
Question 3: Concerning oil cake residues, from the extraction of soya bean oil, could Thailand please clarify is there tariff quota, import surcharge for non-WTO Members only?
(Russian Federation) Oil cake residues, from the extraction of soybean oil is a TRQ product which has quota volume of 230,559 tonnes, the in quota tariff is 20 percent and out quota tariff of 133 percent. However, in the recent year, the applied rate for this product is 2 percent with unlimited import volume. |
Question 4: Could Thailand please elaborate on the reasons for application of measures to fishmeal with protein content of less/more than 60%?
(Russian Federation) Thailand apply some measures to these products to: (1) stabilize price of raw material used for the animal feed; (2) control and monitor for proper use of these products. |
Paragraph 3.42, page 52
The EU would like to know the timeline for the mandatory industry standard for new pneumatic tyres of rubber to come into effect.
(EU) TISI is in the process of drafting mandatory standards for pneumatic tyres, as list below, that are expected to complete in 2016, and will take effect around 2018. (1) Pneumatic Tyre for Motor Vehicles and Their Trailers (2) Pneumatic Tyre for Commercial Vehicles and Their Trailers (3) Pneumatic Tyre for Motorcycles and Mopeds |
3.2.5.2 Safeguards
Para 3.49 Page 53
In connection with the "Safeguard Measures on Increased Imports Act B.E. 2550 (2007)", Chapter 3 (Determination of establishing protective measures and enforcement thereof), Article 26, paragraph 3, could Thailand elaborate on the kind of measures considered under the phrase "or other measures to reduce the volume imported goods"?
(Mexico) Article 5.1 of the Agreement on Safeguards allows Members to apply "safeguard measures only to the extent necessary to prevent or remedy serious injury and to facilitate adjustment" and give an opportunity to Members to "choose measures most suitable for the achievement of these objectives." In Thailand's view, provided that all conditions are met, any measure that reduces or restricts the volume of imported products in order to allow the domestic industry the opportunity to implement the adjustment plans is deemed to be appropriate. Safeguard measures can take a variety of forms. They may involve an increase of tariffs or quantitative restrictions or a combination of both in the form of tariff quotas. In practice, Thailand imposed only three safeguard measures, all in the form of additional duties. |
Page 54, paragraph 3.51
Concerning sector-specific safeguards, Thailand reserves the right to take special safeguards (SSG) action on 55 items including milk.
Can Thailand inform members of the instances when it has taken SSG action during the review period and the exceptional circumstances that necessitated the SSG action.
(Australia) GATT 1944 Article 19, the Uruguay Round Safeguards Agreement, and in Article 5, the Special Safeguard Provision, on present Agriculture Agreement allow the country members to make temporarily action to raise their tariff with the special circumstances such as a surge in imports or price fall in order to restrict imports of a product with such products have to post in its schedules of commitments. Thailand has reserved the right to use the Special Agricultural Safeguard (SSG) on the listed of 52 tariff lines on the schedules of commitments on agriculture. However, the SSG has never been applied since then. If the SSG would applied, it is in line with the agreement under WTO. |
3.2.6.1 Standards and other technical requirements
Para 3.52 Page 54
What are the main changes and/or updates between the strategic plan (2011-2015) and the new plan (2016-2020)?
(Mexico) The strategic plan (2016-2020) will focus on the TISI to elevate the standards of products and services (conformity assessment in line with the standards/services), to promote consumers' confidence and capacity building of entrepreneurs to increase competitiveness at regional and international levels. |
Please specify the authorities (bodies) responsible for quality control and for phytosanitary requirements for exports and imports of agricultural products (brief description of their functions, areas of competence, their higher authorities, mechanism of interagency cooperation) .
(Russian Federation) Phytosanitary requirements for imports of agricultural products is a responsibility of Department of Agriculture and for exports of agricultural products is a responsibility of National Bureau of Agricultural Commodities and Food Standards. For more information, please refer to: https://www.ippc.int/static/media/files/reportingobligation/2015/04/10/1309960296_NPPO_general_information_2013042321-18En.pdf. |
Page 55 (Para 3.55 )
Questions: Please introduce in detail the 9 accredited environment management system certification bodies mentioned in the paragraph.
(China) As of November 2015, there are 8 accredited environmental management system certification bodies. The list is available on website at http://www.tisi.go.th/eng/accreditation/item/76.html. |
Page 55 para 3.56
Question: Could Thailand provide the name list of the contracting party/body regarding the bilateral MRA on automotive products?
(Chinese Taipei) Mutual Recognition Arrangement on Automotive Products between the Thai Industrial Standards Institute of the Kingdom of Thailand and the Federal Office of Road Safety of Australia (See Notification G/TBT/10.7/N/22/Rev.1 ) . This arrangement covers only road vehicles, equipment and parts originating in the countries of the Parties to the Arrangement. The Parties will mutually accept test reports for road vehicles, equipment and parts issued and/or certified by each Party as demonstration of compliance with technical regulations listed in Annex I and administered under the legislative, regulatory and administrative provisions listed in Annex II by the Thai Industrial Standards Institute of the Kingdom of Thailand and The Federal Office of Road Safety of Australia. |
Para 3.57
Question 1: Regarding the technical regulation on alcoholic beverages, which is the current status of regulation?
(Mexico) The Notification of Alcoholic Beverage Control Committee, regarding to Rule, Procedure and Condition for Labels of Alcoholic Beverage B.E. 2558(2015) became effective on 22 April 2015. In case of guidance document on the regulation had been provided for the propose of expressed their intention to intendment of law, not any effect like a law. |
Question 2: In the framework of the WTO Committee on Technical Barriers to Trade, there are permanent concerns of various WTO Members on this measure, will Thailand foresee additional amendments to the regulations I order to address the concerns?
(Mexico) Thailand emphasize in all concerns, We have well-realised with the fulfilment of the TBT agreement. We are strongly believed that our policy is not based on trade barrier intention but to fulfil our ultimate goal of addressing alcohol-related problems and served the purpose of consumer's protection. |
3.2.6.2 Sanitary and Phytosanitary measures
Page 56, Paragraph 3.58
Question: Under the heading Sanitary and Phytosanitary measures, the report notes that 'The trend towards primary responsibility being given to the private sector and more coordination by the Government is being continued.'
Could Thailand please clarify this comment? Does it mean that Thailand is moving towards private sector responsibility for policy development of SPS measures and/or certification of SPS conditions through Approved Officer-type schemes? If so, what measures are in place to ensure that the Appropriate Level of Protection is being provided without interference from domestic industries which may have an interest in SPS measures being more trade restrictive than necessary?
(Australia) According to the Cabinet Resolution as of 11 May B.E. 2553, government agencies have been authorized to transfer their responsibilities of inspection and certification to the private sectors for the purpose of lightening the government duties as well as responding to the farmers and manufacturers' demands. The responsibilities transferred to private sectors are limited to accredited laboratories and GAP/GMP inspection and certification. However, government agencies still responsible for policy development of SPS measures, issuance of health certificates and phytosanitary certificates for export, and supervising the operation of private sectors for transferred responsibilities. |
Paragraph 3.63, page 57
Question: Could Thailand provide the estimated time line for the pest risk assessment (PRA) for imports of prohibited articles and explain which are the criteria in use for prioritising the applications?
(EU) A standard Pest Risk Assessment for the new market access request of prohibited articles normally take approximately 24 months. It may take more than 24 months if the information submitted by exporting countries is not adequate or both sides are not agreeable on proposed import conditions. |
Page 58 para 3.65
Question: While Canada recognizes the on-going efforts the Government of Thailand is making to actively resolve this market access issue, Canada would be grateful if Thailand could provide an update on when it intends to adopt the MRLs for ractopamine as adopted by the Codex Alimentarius Commission.
(Canada) Thailand has strictly controlled animal feed and human food by enforcing measures that are applicable, in a non-discriminatory manner, to both locally produced products and imported products. The Ministry of Agriculture has prohibited the use of Beta-Agonist, including ractopamine, in any animal feed production under Animal Feed Quality Control Act since 1982. Furthermore, under the Notification of the Ministry of Public Health in 2003, all food products sold in Thailand must not be contaminated with Beta-Agonist. Consequently, all meat products in Thailand are Ractopamine free. The Codex Alimentarius Commission established MRLs for ractopamine in cattle and pig tissues in 2012. Risk analysis by Codex considers the safety of consuming in four kinds of tissue only while consumers in Thailand consume many internal organs. In addition, The information from additional risks assessment analysis of China for ractopamine in the other pig's tissues which the result was submitted to Joint FAO/WHO Expert Committee on Food Additives (JECFA) for evaluation shown that there is high level of ractopamine residues in such tissues. Therefore, in terms of reviewing the Thai regulations with regard to MRL in food products, it has been discussed in overall picture with the relevant agencies, namely the Ministry of Agriculture and Cooperatives, Ministry of Commerce, Ministry of Public Health, Ministry of Science and Technology and Ministry of Industry which is concluded that the measures and legislation prohibiting the use of beta-agonist in animal feed and the residues are still implemented. The rationale behind such prohibit legislation is to protect consumer's health because Thai consumers consume the other pig's tissues which Codex does not set MRLs value. |
Question: Could you please explain the reason for higher inspection fee for the imported goods than for domestic products?
(Russian Federation) The fees for domestically produced meat are collected under the Animal Slaughter Control and Meat Sale Act B.E. 2535 (1992) . The fees cover, among others, slaughter fee, fee for using slaughter house, and lairage fee or fee for using animal handling facilities before slaughtering. These fees are collected by the local administrative authority under the Ministry of Interior. This Act was enacted for the safety benefit for local consumption and supporting free trade in the country. While the inspection fees for imported meat are collected in order to assure safety of meat product when importing to Thailand. The fees cover testing animal and animal products, including inspection process, collecting the sample, and laboratory diagnosis. The fees are under the regulation under the Animal Epidemic Act. Therefore, these two types of fees are different in the perspectives of intentions and purposes of the fees. In addition, the new Animal Epidemics Act is effective since 2014, however, it is awaiting for the implementing regulations which will result in a fivefold increase in inspection fees, from the current ceiling rates of B 20/kg (US$667/MT) to B 100/kg (US$3,330/MT) . |
page 59 para 3.69
Question: With respect to the plain packaging law on tobacco products, which is the status of that law? Will this law be notified to the TBT Committee of the WTO?
(Mexico) Notification of the Ministry of Public Health Re: Criteria, Procedures, Conditions for Displaying Statements about Dangers and Hazards of Consuming Tobacco Products on Cigarette Label pursuant to Tobacco Product Control Act B.E. 2535 (A.D. 1992) (No.18) B.E. 2558 (A.D. 2015) had been notified to the TBT Committee and in force since 30 September 2015 (See Notification G/TBT/N/THA/468 ) . |
Question: It might Thailand deliver more information about the current state of the law in plain packaging for products of snuff?
(Honduras) The draft Tobacco Consumption Control Act is being considered by the Council of State. |
Question: The Secretariat report emphasizes the "Ministry of Health" is considering a plain packaging law. Could Thailand clarify whether the Ministry of Trade and the Ministry of Finance have any role in the decision to introduce plain packaging in Thailand?
(Honduras) When the draft law was first submitted to the Cabinet, the Secretariat of the Cabinet invited comments from the relevant agencies, including the Ministry of Commerce and Ministry of Finance for the consideration of the Cabinet and the Council of State. |
Question: Has the Ministry of Health conducted any scientific study or independent research on the Thai market that concludes that prohibiting the display of product names, marks and the name of the manufacturer or Importer of tobacco products, would have significant impact on tobacco consumption in Thailand?
(Honduras) Scientific study or independent research on the Thai market has not been conducted. However, the empirical evidence based on Cigarette consumer's buying behaviors shows that they do not change brands frequently and they tend to remain loyal to particular brands for extended periods of time. |
Question: Other measures have Thailand considered that are consistent with its WTO commitments, and less trade-restrictive than plain packaging for tobacco products?
(Honduras) Thailand does not consider any additional measures. |
Question: Can Thailand explain how statement regarding the value of intellectual property rights is consistent with the proposal to prohibit the display and use of trademarks in tobacco and, eventually, alcoholic products?
(Honduras) The core mission of the Ministry of Public Health (MPH) is to promote public health, to ensure quality public health system and universal access to healthcare with participation of the people, communities and all sectors. The objective of the Tobacco Consumption Control Act is to reduce public health risks caused by tobacco consumption which is a legitimate public policy objective. Furthermore, there is no restriction in this Act to prevent the use of trademark. |
Question: Thailand Could Provide Further information on the decision to extend plain packaging to alcoholic products? When Thailand is planning to implement measure?
(Honduras) Thailand has not implemented yet plain packaging measure to both tobacco products and alcoholic beverages. Moreover, Thailand does not plan to extent plain packing measure to alcohol product. |
Question: If, as the Secretariat report suggests is implemented plain packaging for tobacco and alcoholic products, what would be the impact on trademarks currently being used on these products in Thailand?
(Honduras) The Tobacco Consumption Control Act has not yet entered into force. |
Question: Taking into account the need for industry to get acquainted with the new rules, as well as the important changes introduced by the new rules and the fact that several aspects remain unclear, the EU would like to know whether Thailand has considered extending the implementation period of the alcohol labelling regulation into a longer time frame. Furthermore, the EU is also wondering whether Thailand is planning to issue additional technical guidelines on the implementation of this measure, in order to further clarify implementation aspects.
(EU) We cannot consider on extending the implementation period into a longer time frame anymore. Grace period that was given is a normal and reasonable time frame. However, additional time of 180 days is also given so that manufacturers would have enough time to comply with the regulation. |
Question: The EU also noted that the alcohol labelling regulation prohibits widely used terms which indicate quality, such as ''finest'' or ''premium'' on the labels. Could Thailand explain how this measure could discourage irresponsible consumption of alcohol?
(EU) The use of word relate to quality or characteristics of a product such as "finest", "premium", "original", "rare" and "limited" can mislead consumers into believing that the product is better or special than other brand, according to various studies conducted by various academic institutions. |
Question: Could Thailand provide an update on the current status of the proposed graphic labels and warning regulation on alcoholic beverages?
(EU) At present, the considering of selection a suitable picture is ongoing. |
Question a) Has the implementation period of the measure been extended (from 6 to 12 months)? Is Thailand considering an extension?
(Brazil) We cannot reconsider to extend an implementation period of the measure. The implementation period which remarked in the notification is reasonable because if compare to the same characteristic of other law that related to changing label's measure issue in Thailand, for example food, drug or tobacco this notification can be considered as a normal implementation period. |
Question b) Are the criteria for the new labelling requirements for alcoholic beverage packages or pictorial labels/warning statements based on international norms, recommendations or standards?
(Brazil) Base on TBT and TRIPS TBT: on the issue of Technical Regulations and Standards - Article 2: Preparation, Adoption and Application of Technical Regulations by Central Government Bodies With respect to their central government bodies: Members shall ensure that in respect of technical regulations, products imported from the territory of any Member shall be accorded treatment no less favourable than that accorded to like products of national origin and to like products originating in any other country. Members shall ensure that technical regulations are not prepared, adopted or applied with a view to or with the effect of creating unnecessary obstacles to international trade. For this purpose, technical regulations shall not be more trade-restrictive than necessary to fulfil a legitimate objective, taking account of the risks non-fulfilment would create. Such legitimate objectives are, inter alia: national security requirements; the prevention of deceptive practices; protection of human health or safety, animal or plant life or health, or the environment. In assessing such risks, relevant elements of consideration are, inter alia: available scientific and technical information, related processing technology or intended end-uses of products TRIPS: Part I — General Provisions and Basic Principles Article 8 – Principles Members may, in formulating or amending their laws and regulations, adopt measures necessary to protect public health and nutrition, and to promote the public interest in sectors of vital importance to their socio-economic and technological development, provided that such measures are consistent with the provisions of this Agreement |
Question c) How does Thailand define, in scientific grounds, whether a piece of information provided in labels is "regarded as an unfair message to consumers or which may cause negative social effects" or "directly or indirectly persuades consumption or make claims on the benefit or quality of an alcoholic beverage"?
(Brazil) Define by refer to measure presented in The Notification clearly, The Labels of Alcoholic Beverage shall not use any messages as follows: 1. The message which is unfair to consumers or leads to consequentially affected to social although these messages may relate to sources, condition, quality or characteristics of products or services including delivery, procurement or application of products or services; The messages being regarded as unfair message to consumers or consequentially affected to social are defined as follows: a. the message which is false or exaggerated; b. the message which misleads the content of products or services although these messages may refer to an academic report, statistical data or unrealistic or exaggerated information; |
the message that directly or indirectly supports an illegal or morality or leads to discredit to the national culture; c. The message that leads to disharmony or prejudice to the social or people. The message which directly or indirectly persuades to consume or pretentiously exaggerates the benefit or quality of alcoholic beverage. |
Question d) Has Thailand published any implementation guide for the regulation?
(Brazil) The Notification's implementation guide in Thai language was published in Office of Alcohol Control Committee's website since 27 September 2015. |
Question e) Can Thailand provide a version of the new regulation in English or Spanish, as requested before by the Brazilian Delegation in Geneva?
(Brazil) The name of new regulation is "Notification of the Alcoholic Beverages Control Committee, Regarding to Rules, Procedure and Condition for Labels of Alcoholic Beverages B.E. 2558 (2015)" which the same main point as presented in Thailand's Draft Notification of Alcoholic Beverages Control ( G/TBT/N/THA/437 ) . For Technical guideline document had been provided for the propose of expressed their intention to intendment of law, not a law, thus can be sent this document to your embassy for translation |
Question: The Secretariat's Report discusses a number of requirements related to alcohol labelling. Please explain what the alcohol label approval process is and which government authorities are responsible for implementing and enforcing the alcohol labelling regulations. Please also provide clear guidelines on prohibited texts. Finally, please explain what information would be considered misleading to consumers.
(US) This Notification has not defined to submit for verifying or any label approval process from Thai official in order to decrease procedure and difficulty to Alcoholic Beverage's manufacturers and importers. However, to provide facility, a manufacturers and importers could be consult to Office of Alcohol Control Committees, Department of Disease Control, Ministry of Public Health on Alcoholic Beverage's label and container issue. Office of Alcohol Control Committee not has priority to approve a label, the priority for issue a label hold by Excise Department. For prohibited texts, it presents clearly in the Notification as this follow: The messages being regarded as unfair message to consumers or consequentially affected to social are defined as follows: a. the message which is false or exaggerated; b. the message which misleads the content of products or services although these messages may refer to an academic report, statistical data or unrealistic or exaggerated information; c. the message that directly or indirectly supports an illegal or morality or leads to discredit to the national culture; d. The message that leads to disharmony or prejudice to the social or people. |
3.2.7 Government procurement
Page 60 para 3.71
Question: When will Thailand be in a position to consider moving from observer to the Committee on Government Procurement to full member of the GPA?
(Canada) Thailand has to consider the conditions rules and regulations of GPA, develop Thailand government procurement rules and regulation to comply with GPA and enhance the understanding of GPA to government agencies, government entities and suppliers before applying to the GPA member. |
Page 60 para 3.74
Question: We understand that, during the period of review, the Government of Thailand began working on a draft Procurement Law. What is the status of law? What are the goals and objectives of the Procurement Law?
(US) The objectives of the new Public Procurement are to elevate the Regulations of the Office of the Prime Minister on Procurement B.B. 2535 (1992) to be Public Procurement Act, harmonized all procurement regulations of government agencies, local authorities, and state-owned enterprise, disclose public procurement information to public as much as possible in order to increase transparency, competition and fairness in public procurement. |
Page 61 para 3.77
Question: The EU understands that Thailand is in an ongoing process of reforming its government procurement legislation to manage the risk of corruption in public procurement. Could Thailand provide more detailed information on the revision schedule?
(EU, Canada) Thailand has expected that the new Public procurement Act will be enforced in 2016. |
Question: Does Thailand plan to eliminate the price preference against foreign suppliers in order to improve competition and technology transfer?
(EU) Thailand is in the process of proposing draft Public Procurement Act for National Legislative Assembly consideration and amendment. However, the new Public Procurement Act will increase more transparency, efficiency and widely open for competition. |
Page 63 para 3.82
Question: Will all procuring entities be covered by this new act?
(Canada) The new Public procurement Act will cover all government agencies, state enterprises and local authorities. |
Question: Will the new act treat domestic and foreign companies differently?
(Canada, New Zealand) Thailand is in the process of proposing drafted Public Procurement Act for parliament consideration and amendment. However, the new Public Procurement Act will increase more transparency, efficiency and widely open for competition. |
Page 64 para 3.86
Question: What are the considerations of Thailand in reinstating export tax for such products as rice? How would Thailand address the concern over the implications of its export tax policy on global price?
(Hong Kong, China) Thailand repealed the imposition of export tax on rice. Thailand's export taxes for wood and leather are primarily for the purpose of conserving the environment. |
3.3.3 Export prohibitions, restrictions and licensing
Table 3.4 Products subject to export licensing, registration requirements or prohibitions, 2015
Questions: Could Thailand clarify which are the import requirements applied to exporters to the EU and US to become member to the food association? Could Thailand also explain what situation applies when exporting to countries other than the US and the EU?
(EU) There is no mandatory import requirement applied to exporters to become a member of the food association for exporting crustaceans to the EU and US, however, the export requirements as mentioned in the Notification of the Ministry of Commerce on the Export Regulation of (No.43) B.E. 2530(1987) are applied in order to control the quality standard of "frozen or chilled shrimp", "frozen or chilled octopus", and "food with shrimp ingredient over 10 percent by weigh" exporting to the US and the EU as Thailand's major export market. Exporting of such products to countries other than the US and the EU, the exporters shall not be required to be a member of Thai Frozen Food Association. |
Question: Could Thailand submit a detailed description of the exports procedures of canned tuna? In particular, could Thailand clarify how these two associations regulate the export system?
(EU) The product subject to the Notification of the Ministry of Commerce on the Export Regulation of Canned Tuna B.E. 2557 (2014) is "Canned Tuna" in various forms including whole or in pieces, but not minced of Tunas (of the genus Thunnus), skipjack (strip-bellied bonito) or bonito (Sarda spp.) in airtight can under the Thai Customs Tariff Code 1604.14.11 and 1604.14.19. According to the Ministry of Commerce's Notification, the exporters of canned tuna to every country shall be a member of "Thailand Food Processors' Association" or These two associations have authority to regulate the export system. However, each association can determine the criteria for applying for membership such as having the food manufacturing license from the Food and Drug Administration of Thailand, having the certificate on GMP/HACCP as the confirmation of announced intentions to practice the Food Safety Policy, IUU Fishing Policy and sustainable policy and ethical code of conduct of the Association in order to control their members to conform with their conditions and restrictions. |
3.3.4.3 Industrial Estate Authority of Thailand free zones
3.3.4.4 3.3.4.4 Customs free zones
Page 68 para 3.96
Question: We would appreciate to know whether the authority has detected investor's preferences for any of the types of free zones described in the report of the Secretariat, and if that preferences may be associated with some kind of particular advantage.
(Mexico) Advantages of Free Zone All of the advantages a Free Zone Scheme can offer manufacturers and processors located in Thailand are numerous. A few main benefits that account for most of the companies that use a Free Zone Scheme are listed below: 1. Relief from import and internal taxes/duties: imported merchandise, removed into or manufactured in a Free Zone for industrial or commercial operations or any other operations involving economic growth and development, is not subject to import taxes and duties. This includes: machinery, equipment, and parts; foreign merchandise; and merchandise transferred from other Free Zones. In addition the imported merchandise removed into or manufactured in a Free Zone is also not subject to Value Added Tax (VAT), excise taxes, alcohol tax, including tax stamp and fees under the Alcohol Act, Tobacco Act, and Playing-Card Act. Additionally, a "ZERO" tax rate is applied to calculate VAT for domestic merchandise removed into a Free Zone, provided that such merchandise subject to export duty or exempted from export duty under the Customs Act. 2. Relief from export duty on re-exports: without a Free Zone, if a manufacturer or processor imports a component or raw material into Thailand, it is required to pay import taxes and duties at the time the component or raw material enters the country. However, a Free Zone is considered to be outside Thailand and Thai Customs territory. Accordingly, when foreign merchandise is brought into a Free Zone, no taxes and duties is owed until the merchandise leaves the Zone and enters Thailand for consumption. Only then is the merchandise considered imported and the duty paid. If the imported merchandise is re-exported to other countries, no Customs duty is charged. 3. Relief from standard/quality control requirements: imported merchandise or domestic raw materials removed into a Free Zone for manufacturing, mixing, assembling, packing, or any other operations is relieved from standard/quality control requirements or any other similar requirements; provided that such merchandise is re-exported to other countries. Duty Exemption on Waste, Scrap, and Yield Loss: If the processor or manufacturer is conducting its operations within a Free Zone environment, the merchandise is not considered imported, and therefore scrap, waste, or yield loss from an imported component is exempted from import and internal taxes and duties, if applicable. 4. Eligible for export tax refund/exemption schemes: merchandise entitled to export tax refund/exemption schemes when exported is still qualified for such schemes after it is removed into a Free Zone. |
3.4.1.1.1 Excise tax
Page 70, paragraph 3.104
Question: On 24 April 2013, a new excise tax structure for automobiles taking into account carbon emission was approved and expected to enter into force in 2016.
We would appreciate advice on the effective date of the new automotive excise tax regime.
(Australia) The new regime is expected to enter into force on 1 January 2016. |
Para 3.106
Question: Does the government have any further plans to reform excises so that it addresses concerns about the current regime potentially disadvantages imported vehicles?
(Australia) The future reformation of excise tax law will transform tax base, by using suggested retail price (exclude VAT) as tax base to meet the challenges of AEC and social outcomes. This will create fairness as goods imported and produced domestically are subject to the same tax base and enhance the transparency of the tax calculation and address the problem in which the previous excise tax system created. |
Para 3.107
Question: Why has the government changed the basis for excise tax computation from an ex-factory price, CIF price, or last wholesale price, to a "suggested retail price" and how will this impact on importers?
(Australia) The Excise Department treats all the traders equally by applying the same tax rate to the same products. In detail, spirits tax burden will vary on their type and quantity not vary on the place of origins. Therefore, the same tax rate is applied on the same type of spirits. |
Page 74, Para 3.116
Question:
3.116…According to the authorities, currently there are neither incentives in place nor any plans for new incentives for Thai companies investing abroad. The BOI only provides consultation services domestically as well as training programs aimed to prepare companies in their ventures abroad. Please introduce the specific measures for the incentive plans based on regions, activities and performance.
(China) Currently the BOI does not provide incentives for Thai investors investing overseas. |
Page 75 para 3.118
Question: We would like to know more detail about the achievements reached by establishing special economic zones.
(Mexico) Achievement reached for special economic zone (SEZ) in Thailand: (1) Designated 10 border SEZ areas namely: Tak SEZ, Sakaeo SEZ, Songkhla SEZ, Mukdahan SEZ, Trat SEZ, Nong Khai SEZ, NakhonPhanom SEZ, Chiang Rai SEZ, Kanchanaburi SEZ and Narathiwat SEZ. (2) Specified special investment privilege for border SEZ, for general activities and 13 target activities (Announcement of the Board of Investment No. 4/2014) . General Activities 13 Target Activities
1. Additional corporate income tax exemptions of 3 years but not exceeding 8 years in total. 1. Exemption of corporate income tax for a period of 8 years
2. If the activities are in Group A1 or A2, which are entitled to 8 years corporate income tax exemption, then a 50 percent reduction of corporate income tax for next 5 years will be permitted 2. 50 percent reduction of the normal rate of juristic person income tax on the net profit deriving from the promoted activity for next 5 years
3. Permission to double deduct costs of transportation, electricity and water supply for a period of 10 years. ✓
4. Permission to deduct 25 percent of investment costs on the installation or construction of facilities. ✓
5. Exemption of import duty for machinery. ✓
6. Exemption of import duty for raw materials and essentials used in the production of products for export for ✓
7. Permission to employ foreign unskilled workers for promoted projects (according to conditions determined by the Board.) ✓
8. Non-tax incentives. ✓
From February-August 2015, the Board of Investment approved 2 projects; total investment cost about 300 million baht in Tak SEZ. |
Questions: If feasible, we would like to know which elements were taken into account in defining that the establishment of a special economic zone would be more advantageous than the creation of a free zone.
(Mexico) Why SEZ would be more advantageous than the creation of a Free zone? (1) For Thai Government: the objective of border SEZ in Thailand is to enhance trade and investment in border areas and to decentralize economics activities, social activities to border areas. Thus, for decentralization objective, border SEZ is more appropriate than a Free zone which emphasizes on trade and investment in enclosed area, while Thai border SEZ also encompass surrounding communities so that not only investors but also the communities around the area will benefit. (2) For investors: special investment privilege in border SEZ is higher than in a free zone and also migrant labor can be legally utilized and it is not limited to export. |
Question: To which extent applicable requirements for benefiting from a special economic zone may differ with respect to requirements applicable in a free zone which operates in Thailand.
(Mexico) The requirements for benefiting from locating in SEZs are different from that of a free zone. To receive incentives from the BOI, not only must a project be located in the SEZs, but it also has to engage in activities eligible for investment promotion. In a contrary, in order to enjoy the benefit from locating in a free zone, a project is not required to engage in a specified activity. |
Page 75, paragraph 3.119
Question: The report notes incentives to improve cooperation between the industrial and education sectors.
What other efforts has the government taken to improve investment in education and promote trade in education services?
(Australia) The BOI promotes investment in educational services i.e. vocational training center. The approved projects will be granted both tax and non-tax incentives, such as 8-year corporate tax exemption, import duty exemption on machinery, permission to own land for doing the business. |
Page 76, Para 3.122
Question: Please introduce the criteria for recognizing ROHs and IHQs and the conditions for enjoying preferential policies.
(China, Singapore) Under the new investment promotion scheme, ROHs is replaced by policies to promote IHQs which was defined as a company incorporated under Thai law that provides any of the following activities to their branches or "associated enterprises", whether located in Thailand or overseas. International Headquarters (IHQ) established in Thailand must conduct activities within the following scope: (1) Managerial services or technical services or (2) Supporting services which include: • General management, business planning, and business coordination • Procurement of raw materials and parts • Research and development • Technical support • Marketing and sales promotion • Human resource management and training • Financial advisory services • Economic and investment analysis and research • Credit management and control • Any other supporting services as stipulated by the Director-General of the Revenue Department International Headquarters (IHQ) projects applying for the BOI investment promotion will receive the following incentives: • Permission to bring in skilled personnel and experts into the Kingdom to work in investment promoted activities • Permission to own land • Exemption of import duty on machinery (Only machinery for R&D and training activities) • Exemption of import duty on raw materials and parts for export purpose • Conditions to apply for privileges offered by the BOI o Must supervise associated enterprises in foreign countries or its foreign branches in at least one country o The paid-up registered capital must not be less than THB 10 million The IHQ projects can also apply for the different set of incentives from the Revenue Department. |
3.4.3 State involvement in production and trade
Page 79, paragraph 3.130
Question: Since 2014, a State Enterprises Policy Committee has been tasked to spearhead reform policies and monitoring standards, in order to help state enterprises fulfil their missions more efficiently.
We would welcome an update on SOEs reform, including a progress on the corporatisation of 13 SOEs and the setting up of a holding company to manage the performance of these SOEs and shield them from direct political intervention.
(Australia, Mexico, Canada) The main objective of SOE reforms is to increase efficiency and effectiveness, enhance transparency and accountability, and mitigate political abuses. One of the main processes is to set up the ownership structure (i.e. National holding company), which will be an independent supervision to manage and monitor the performance of major SOEs. This requires a new legislation that establishes the governance structure, outlining responsibilities of and relationships among the State Enterprise Policy Committee (SEPC), the State Enterprise Policy Office, National holding company, and SOEs. The draft Act comprises two main parts: the overseeing of SOEs and the establishment of the holding entity. According to the governance structure in the proposed legislation, the SEPC will supervise 55 SOEs and will design policies in a macro perspective. These 55 SOEs are divided into 2 groups. On the one hand, National holding company will govern SOEs that are listed and limited companies (in the first stage of implementation) . On the other hand, the State Enterprise Policy Office will command the rest. Currently, the Act for establishing such governance structure is now being drafted and supervised by the SEPC. The proposed legislation is expected to be under the Cabinet's consideration by the end of 2015. In addition to the above legal framework, the SEPC establishes "National Holding Company" Establishment Subcommittee to determine the action plan and timeframe for setting up National holding company, and propose the governance structure, budget, personnel and compensation scheme for National holding company. |
Page 81 para 3.133
Question: Has the TCC issued any guidelines concerning mergers and acquisitions? How many mergers and acquisitions cases have been reviewed since the last trade policy review?
(China) A guideline concerning mergers and acquisitions is currently under the consideration of the OTCC. |
Page 82 para 3.134
Question: Paragraph 3.134 states that the Trade Competition Commission (TCC) and sectoral regulators (in the case of telecommunications the National Broadcasting and Telecommunications Commission -NBTC-) may have concurrent and overlapping powers, and it is not always clear as to which authority shall be the enforcement authority in the case of an overlap. In this regard, has there been any case of alleged anticompetitive practices in the telecommunications sector where the concurrent power generated conflicts between authorities, NBTC and TCC?
(Mexico) No, there has not been any case where conflicts between the NBTC and TCC arose. |
Question: Following a possible matching or overlapping powers of the TCC and sectoral regulators, it is requested to know if there are additional actions to be carried out on this subject.
(Mexico) Thus far, the two authorities have been in close cooperation in order to prevent and deal with any possible conflicts in a timely manner. |
Question: Could Thailand provide a timeframe for the inclusion of state own enterprises within the scope of its Trade Competition Act?
(EU) Trade Competition Act (under the responsibility of Ministry of Commerce) is now being revised. One of the key agenda is to include state own enterprises (with an exemption for some public interest purposes) within the scope of Trade Competition Act. Currently, Ministry of Commerce is still on the process to get approval from National Legislative Assembly. We estimate the timeframe of less than two years starting from the submission of the draft to the Council of State to the publication of the law in the Royal Gazette. |
Question: The Secretariat's Report notes that the only entities that are exempt from the Trade Competition Act "are the central, provincial or local government administrations, state-owned enterprises regulated under the law on budgetary procedures, [etc.]." We understand that as a result of this "exemption" that certain SOEs are exempt from requirements private firms have to meet. For instance, the Government Pharmaceutical Organization (GPO) is not subject to the licensing requirements on the production, sale and importation of pharmaceutical products. Does this mean that the GPO does not have to go through marketing approval for their products? What is the basis for not requiring the licenses for the GPO?
(US) The Office of Trade Competition Commission does not have an authority over the licensing requirements referred to in the question. |
Questions: Are there any mechanisms of division of labor between the TCC and sectoral regulatory authorities when dealing with an antitrust case? Does a central body coordinate the TCC and sectoral regulatory authorities on an overlapping antitrust case?
(Chinese Taipei) There is no formal mechanism of division of labour and no central body to coordinate the work of the TCC and sectoral regulatory authorities. However, the OTCC and other two sectoral regulatory authorities, Office of the National Broadcasting and Telecommunication Commission and Office of the Energy Regulatory Commission, have been in close cooperation in dealing with any case that might overlap the authorities of the two offices.
Question: Do the groups and businesses, which are fully or partially exempt from the application of the TCA, be reviewed periodically for their necessity of exempting?
(Chinese Taipei) No. There has never been an issue of Ministerial Regulation prescribing businesses which can be fully or partially exempted from the application of the law (Section 4(4) of the Competition Act), has never been issued |
Page 82 para 3.135
3.135... Concerning anticompetitive mergers, no business operators can merge if the merger results in a monopoly or unfair competition according to the TCC's thresholds, except where permission is obtained from the TCC. However, the thresholds prescribed by the TCC have not yet been issued, so the merger control provision has never become effective though still under consideration.
Question: As stated above, the TCC has not formulated any thresholds for reporting merger cases. Are there any relevant provisions in the existing laws related to mergers? If not, what are the conditions for reporting a case to the TCC?
(China) The relevant provision on mergers and acquisition under the Competition Act 1999 is Section 26, prohibiting any mergers or acquisitions which may result in a monopoly or unfair competition as provided in the announcement published in the Royal Gazette. |
Para 3.137
Question: Under what circumstances is "a term of imprisonment" set out in the TCA (1999) used as penalties?
(China) All violations to the Competition Act are subject to imprisonment of up to three years and/or a fine of up to six million Baht. However, because no case has reached trial, there has been no precedence on the circumstances where "imprisonment" will be imposed. There is no guideline on this matter |
Page 83 Para 3.138
Question: We note that since Thailand's Trade Competition Act came into force in 1999, there have been 95 claims made to the Trade Competition Commission (TCC) and decisions were made by the TCC in 84 of the cases (as of January 2015) . We note that no case has reached trial or prosecution to date. Could Thailand elaborate on the considerations behind the absence of trials and prosecutions, as well as the outcomes, of these cases?
(Singapore) There was one case that reached the public prosecutor but it did not continue to trial as the public prosecutor did not find sufficient evidence to go to trial. Summary of decisions made by the TCC or the statuses of claims can be found on the website http://otcc.dit.go.th. |
Page 83 para 3.139
Question: Authorities intend to amend the Trade Competition Act 1999 (TCA) to ensure the changes are enforced within the current government's tenure.
Could Thailand provide more information on the efforts to reform the TCA?
(Australia) Amendment of the Competition Act 1999 has been one of the major national reform issues under the current government since 2014. Last month, the National Reform Council submitted its draft amendment text to the Cabinet. The text was discussed among relevant government agencies. Currently, the Ministry of Commerce by the Office of Trade Competition Commission (OTCC) is in the process towards submitting its own amendment text to the Cabinet. The proposed areas of reform in both texts include coverage of application of the law, the establishment of OTCC as an independent body, and adjustment of the penalties to be suitable with the present situation. |
Question: The Secretariat report notes that efforts were made to amend the TCA. These include the Office of Trade Competition Commission's (OTCC) consideration of alternative definitions for dominant players in various sectors, reducing the minimum turnover for companies to be held accountable, and setting different market-share figures.
Would the amendments expand the scope of the law to cover state enterprises that run businesses in competition with the private sector?
(Australia) Among the proposed changes, the OTCC requested for the change of coverage of the law so that state-owned enterprises are excluded from the application of the law only for the operations according to the law or the public policy which are necessary for national security, public interests, maintenance of public benefits, or provision of public facilities. All the proposed changes will be subject to a parliamentary approval after consideration by the Council of State. |
Page 84, Paragraph 3.141
Question: Thailand's Central Commission on Prices of Goods and Services (CCP) lists sugar under its Controlled List which is subject to price controls.
How does the world price factor into the CCPs decisions regarding price controls for sugar?
(Australia) There is a ceiling price for sugar sold in the domestic market, which have been fixed since 1984. The actual domestic market prices are determined by domestic market mechanisms, up to the limit of the ceiling price. Export prices are determined by the global market mechanisms and global prices. As such, there is no artificial relation between the domestic prices and export prices as both are determined by the respective market mechanisms. |
3.4.6. Intellectual Property Rights
Page 88, paragraph 3.151: The Secretariat's Report provides updates regarding Thailand's progress acceding to several international IP treaties governed by WIPO.
Question: Please provide an update regarding the status of Thailand's accession to the Hague Agreement Concerning the International Registration of Industrial Designs.
The Secretariat's Report also notes that Thailand is currently not a contracting party to the WIPO Internet Treaties (WCT and WPPT), and also indicates in paragraph 3.164 that the 2015 amendments to the Copyright Act were intended to align the law with the obligations in these two treaties.
(US) Thailand is preparing domestic procedures to access to the Hague Agreement Concerning the Registration of Industrial Designs. |
Question: Please provide an update as to Thailand's plans with respect to joining the Internet Treaties. In addition, please clarify Thailand's plans (and timing) toward acceding to the Marrakesh VIP Treaty (2013) and the Beijing Treaty on Audio-visual Works (2012) .
(US) Thailand has not yet been party of the WCT, the WPPT, the Marrakesh VIP Treaty and the Beijing Treaty. The Department of Intellectual Property (DIP) under the Ministry of Commerce has however recently amended the Copyright Act B.E. 2537 by adding new provisions which are in line with the WIPO Internet Treaties and exception provision for persons with disabilities. |
Question: As part of the Intellectual Property Rights Action Plan 2011-2015, ASEAN Member States have agreed collectively to accede to the Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks by 2015. We should be grateful to know Thailand's latest progress in this regard.
Question: It is requested to know if there is any scheduled accession to the Protocol relating to the Madrid Agreement Concerning the International Registration of Marks.
(Hong Kong, China; Mexico) Thailand is amending the Trademark Act B.E.2534 (1991) to support future accession of Thailand to the Madrid Protocol The draft amendment is under consideration of the National Legislative Assembly (NLA) . It is expected that Thailand will be able to accede to the Madrid Protocol at the beginning of 2016 |
Page 88 para 3.152
Question: As of end-June 2015 the acceptance of the Protocol amending the WTO TRIPS Agreement was in the process of Parliamentary approval" Australia commends Thailand on progress towards accepting this important instrument, and encourages members yet to do so to take this important step. Can Thailand provide further information on the expected time frame for accepting the Protocol?
(Australia) Thailand recognizes the importance of accepting the Protocol amending the TRIPS Agreement which is currently under consideration of the National Legislative Assembly (NLA) . It is expected that Thailand will be in a position to accept the Protocol in the beginning of 2016. |
3.4.6.1 Legislative and institutional developments
Page 89, paragraph 3.154: The Secretariat's Report states that the Department of Intellectual Property, through the Office of Higher Education Commission, has set "guidelines for using IP at a commercial level."
Question: Please provide details on the substance of these guidelines as well as to which entities they are directed (e.g., SME, independent inventors, domestic, foreign, multinationals, etc.) . Would the government of Thailand enforce these guidelines on entities or are they more a set of best practices?
(US) The Department of Intellectual Property (DIP) under the Ministry of Commerce is the key agency responsible for protecting intellectual property rights, promoting creativity and innovation, and encouraging proper management of intellectual property as well as the commercial exploitation of IPR. Therefore, the DIP supports Higher Education Commission to set up the Technology Licensing Office (TLO) in order to manage their intellectual property rights and promote transfer and commercialization of patented technologies. Operating under the concept "From Lab to Market", the TLOs play an important role in paving the way for economic and social development by helping turn scientific progress into tangible products. The Technology Licensing Office (TLO) does not set any guideline for using IP at a commercial level. |
3.4.6.2 Industrial property
3.4.6.2.1 Patents
Pages 89-90, paragraph 3.155: The Secretariat's Report indicates that amendments to the Patent Act are under consideration.
Question: What is the status of the bill? What changes are being considered?
The Secretariat's Report also states that "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".
(US) The objective of the future amendment of the Patent Act is to support accession of Thailand to Hague Agreement Concerning the Registration of Industrial Designs. It is still under consideration of the Department of Intellectual Property (DIP) under the Ministry of Commerce. |
Question: Please clarify how this definition of industrial design eligibility covers designs embodied in a graphical user interface (GUI) .
(US) Under Article 3 of the Patent Act B.E. 2522 (1979) "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". Therefore, a graphical user interface (GUI) could be considered as elements of design or colors of product. |
Page 90 para 3.156
Question: Could Thailand provide statistics on its backlog in 'invention patents' for the period 2011-2014, outlining what actions are taken to address this problem?
(EU, US, Japan, Chinese Taipei) The number of patent applications increases annually while the number of examiners is limited. According to statistics dated 30 September 2015, there are 28,025 pending patent applications. Currently, the Department of Intellectual Property (DIP) has 24 patent examiners handling approximately 8,000 patent applications yearly. Thailand realizes that IP registration services can be further improved to ensure timelines and safe costs of doing business. In this connection, the Department of Intellectual Property (DIP) is holding a dialogue with the Office of the Civil Service Commission and in the process to seek for the approval to increase patent examiners. The reduction of backlog has thus been the DIP's priority. We plan to increase the number of examiners in order to resolve bottlenecks, improve IT system to enhance IP registration efficiency, introduce legislative change to streamline the registration process, The DIP has maintained close cooperation with other IP Offices, especially the WIPO, ASEAN and Japan, to share patent information to facilitate the examination of the examiners. |
Question: Could Thailand explain how Thai Patent Act compensates patentee to meet the requirement under the Article 33 of TRIPS, if the backlog may not be rapidly reversed?
(Japan) Section 35 of the Patent Act B.E.2522 (1979) provides that the patent will be protected for 20 year from the date of filing of the application in the country. |
Question: Section 9(4) of Thai Patent Act provides "methods of diagnosis, treatment or cure of human and animal diseases" are not patentable. The Decision No. 1/2533 rejected medical use patent application despite the claim directs to medical use, not method of treatment under Section 9 (4) . Could Thailand explain how this interpretation to Section 9(4) meets the requirement under the Article 27.1 of TRIPS?
(Japan) According to the DIP's Manual for Examination of Applications for Patents of Inventions and Petty Patents of Chemical and Pharmaceutical Products, "use" which shows the procedure and method leading to concrete success is considered as "process" in accordance with Article 27.1 of the TRIPS Agreement, provided that the claim for medical use complies with the general principles contained in Section 5 of the Patent Act B.E.2522 (1979) (novelty, inventive step and industrial applicability) and is not in conflict with Section 9 of the Patent Act B.E.2522 (1979) . The Decision No.1/2553 was rejected by the Patent Committee because the claims were considered as "the method for treatment" which are prohibited by Section 9 (4) . |
Question: Has Thailand considered joining the Patent Law Treaty? This would reduce formalities, thereby making getting patents less cumbersome.
(EU) Thailand has no plan to join the Patent Law Treaty yet. We have nevertheless engaged in cooperation with WIPO and EPO to optimize workflow. |
Question: Please expand on the details of this program, especially regarding the pendency of these 25 ASPEC routed applications. Also, please provide an updated status regarding ASPEC use since July 2015. Finally, please provide further details regarding the types of applications received by DIP through ASPEC, include enitity nationality and the subject matter of the invention.
(US) The ASEAN Patent Examination Co-operation (ASPEC) is the first regional patent work-sharing programme among 9 participating ASEAN Member States (AMS) IP Offices of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, the Philippines, Singapore, Thailand, and Viet Nam. The programme was launched on 15 June 2009. The purpose of the ASPEC is to share search and examination results between the participating offices to allow applicants in participating countries to obtain corresponding patents faster and more efficiently. The programme would reduce duplication on the search and examination work done, thereby saving time and effort. Additionally, search and examination work done on a corresponding application serves as a useful reference in producing quality reports. Recently, Thailand received 28 ASPEC routed applications which are from Singapore, Malaysia, and Indonesia. |
Page 90 para 3.157
Question: Could Thailand clarify how, allowing generic applicants to rely on proprietary test data submitted to regulatory authorities during the relevant protection period, complies with the second obligation under Article 39.3 of the TRIPS Agreement to protect test data against unfair commercial use?
(EU) Article 39.3 of TRIPS requires Members to protect undisclosed test and data submitted to regulatory authorities against unfair commercial use. Thailand's Ministry of Public Health has observed the obligation on data protection through the issuance of the Ministry of Public Health Regulation on the Protection of Undisclosed Drug Registration Data B.E. 2550 (2007) which provides that the pharmaceutical test data submitted for marketing approval shall be protected against disclosure and unfair commercial use. The use of or reference to or reliance on any disclosed scientific knowledge on the safety and efficacy of a drug in the public domain in support of the marketing authorization of generic products by generic manufacturers is allowed and in compliance with the obligation under Article 39.3 of TRIPS. |
Page 90, para 3.158
Question: While imposing tobacco control, the Thai authorities should take into full account the protection of intellectual property rights (especially trademarks) in tobacco products. How can "plain packaging" protect trademarks?
How can the Tobacco Consumption Control Act ensure a fair competition environment for the sale of tobacco products?
(China) Thailand confirms its commitments to protect trademarks in accordance with the TRIPS Agreement. The tobacco plain packaging has not been implemented yet in Thailand. The objective of the Tobacco Consumption Control Act is to reduce public health risks caused by tobacco consumption which is a legitimate public policy objective. |
Question: The Secretariat's report states that "[a]s of 2014 the Ministry was considering a plain packaging Law, the Tobacco Consumption Control Act, which includes language prohibiting the display of product names, marks, importer or manufacturer names on tobacco products, and similar regulation could also be extended to alcoholic products. The new regulation could require warning labels on all cigarette packages to cover 85% of a package (up from 55%), thus restricting the size of trademarks on tobacco product labels; the authorities indicated that the registered trademarks are still protected under the Trademark Act."
Please provide an update regarding whether similar plain packaging regulations will indeed be extended to alcoholic beverages. Would such regulations be imposed on foreign entities that manufacture and/or sell their alcoholic beverages in Thailand?
(US) Thailand confirms that the new regulation requires health warnings on all cigarette packages to cover 85% of a package (up from 55%), thus restricting the existing size of trademarks on tobacco product labels; the relevant registered trademarks are still protected under the Trademark Act. Thailand has not implemented yet plain packaging measure to both tobacco products and alcoholic beverages. If yes, it would apply to both domestic and foreign products on a non-discriminatory basis |
3.4.6.2.3 Trade Secrets
Page 91 para 3.160
Question: The Secretariat Report notes that "Under the Trade Secrets Act B.E. 2545 (2002), last amended in 2015 (section 3.4.6.1), undisclosed information remains protected only when not generally known or readily accessible within the business, its secrecy makes it valuable, and it is in the control of the information owners who have taken steps to keep it secret". Could Thailand tell us how many civil and criminal actions against willful misappropriation or disclosure of trade secrets/undisclosed information had been brought since 2002? Or, could Thailand tell us any statistical data about those kinds of cases?
(Japan) According to the Central Intellectual Property and International Trade Court's official website, there are 41 civil cases and 28 criminal cases filed against willful misappropriation or disclosure of trade secrets/undisclosed information from 2002 to 2014 |
3.4.6.3 Copyright and related rights
3.4.6.3.1 Copyright
Paragraph 3.161, page 91
Question: Is Thailand considering joining the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty? If it is not, how does the government intend to address the fast-growing problem of online piracy in Thailand taking into account that current protection is widely considered to be insufficient for the effective prevention and countering of digital copyright infringement?
(EU) Even though Thailand has not yet joined the WIPO Copyright Treaty (WCT) and the WIPO Performances and Phonograms Treaty (WPPT), the Department of Intellectual Property (DIP) under the Ministry of Commerce has recently amended the Copyright Act B.E. 2537 by adding new provisions which are broadly in line with the Treaties. On February 5, 2015, the Copyright Act (No.2) B.E. 2558 and the Copyright Act (No.3) B.E. 2558 were published in the Government Gazette and came into force on August 4, 2015 and April 6, 2015 respectively. The Copyright Act (No.2) B.E. 2558 was designed to improve the protection for copyrighted works on the Internet as well as to solve the problem of online piracy in Thailand. The amended law covers the following provisions: • protection of technological protection measures; • protection of rights management information; • limitations on ISP's liability; • exhaustion of rights; • exception for temporary reproduction; • moral rights of performers; • punitive damages; and • allows the court to give an order that such things are unusable or issue an order to destroy such things whereas the infringer shall be liable to any cost of such. |
Page 93, paragraph 3.166: The Secretariat's Report states that Thailand's recent copyright amendments fail to provide adequate protections "against the circumvention of technological protection measures" and "omit a much-needed landlord liability provision."
Question: Please provide an update as to whether there have been any developments to addressing these two deficiencies noted by the Secretariat's Report.
(US) The Department of Intellectual Property (DIP) under the Ministry of Commerce has recently amended the Copyright Act B.E. 2537 by adding new provisions which are in line with the Treaties. On February 5, 2015, the Copyright Act (No.2) B.E. 2558 and the Copyright Act (No.3) B.E. 2558 were published in the Government Gazette and they came into force on August 4, 2015 and April 6, 2015 respectively. The Copyright Act (No.2) B.E. 2558 was designed to improve the protection for copyrighted works on the Internet as well as to solve the problem of online piracy in Thailand by adding several provisions including the provisions on protection of technological protection measures. (Section 53/4 and section 53/5 of the Copyright Act B.E. 2537 as amended by the Copyright Act (No.2) B.E. 2558 and the Copyright Act (No.3) B.E. 2558) . Even though there is no specific landlord liability provision, in any case, if there is strong evidence that a landlord is a principal, an instigator or a supporter in committing an infringement of intellectual property rights, an injured person is able to make a complaint to the competent official to carry out criminal proceedings against the landlord of the place where an infringer sells infringing products in accordance with section 83, section 84 or section 86 of the Thai Panel Code. |
3.4.6.4 Government use and compulsory licensing
Pages 93-94, paragraph 3.170: The Secretariat's Report states that current Thai law permits any interested person to apply for a compulsory license to translate a work into Thai or to reproduce a translation published in Thai, under special circumstances. We understand that Thailand has deposited with WIPO a notification in which the Government avails itself of the provisions found in Article II of the Appendix to the Berne Convention.
Question: Please identify how many of these translation reproduction licenses have been issued in recent years.
(US) Article 54 of Copyright Act B.E. 2537 (1994) allows a Thai national, who desires to seek a copyright license for a work which has already been registered but has not been translated into the Thai language for the benefit of study, teaching or research without a profit-seeking purpose, apply for a compulsory license to translate a work into Thai or to reproduce a translation published in Thai, under special circumstances. Since this regulation was published, there has not been any application for the translation reproduction licence. |
3.4.6.7 Enforcement
3.4.6.7.1 Features
Pages 94-95, paragraphs 3.174-175: The Secretariat Report outlines a wide range of concerns related to IP enforcement, despite Thailand's efforts.
Question: Please identify what steps Thailand is taking, beyond the efforts described in the report, to address the deficiencies in its enforcement.
(US) Thailand is not a major manufacturing site but the country remains market for IPR infringing goods. The Department of Intellectual Property of Thailand focuses its efforts more on public education and awareness campaigns to nurture a respect for IP rights. This tackles the problem at its roots and we believe this will be a long-term solution. |
Question: Could Thailand outline what actions it is taking to address this problem, providing examples of actual actions that have been carried out?
(EU) The Thai Customs Department focuses its enforcement efforts on trademark counterfeiting and copyright piracy at the border. With respect to trademark protection, a rights holder can file a Customs trademark recordation form with Department of Intellectual Property (DIP) and the information will be published in http://www.thaiipr.com. Customs officers can ex-officio or take actions based on the recordation submitted to intercept shipment containing goods suspected of infringing trademark. Regarding copyright, since there is no copyright registration, rights holder must make a request to Customs for suspension of release of goods and provide guarantee or file a complaint with the police and notify customs officers. Most border measures are taken against trademark counterfeiting. Copyright owners seldom file a request for suspension of suspected pirated goods. The Thai Customs Department has recognized that the trade in counterfeit and pirated goods is posing increasing risks for the country. Various actions have been initiated to assist Customs in combating counterfeiting and piracy. Thai Customs established a specialized unit called "IPRs Coordination Center" under the Investigation and Suppression Bureau to focus mainly on IPRs related issue e.g. advises Customs officers on IPR matters, liaises with rights holder and etc. Several tools have been deployed e.g. online Customs trademark recordation database, Word Customs Organizations Interface Public Members (IPM) system and etc. Also, Thai Customs utilizes risk management indicators to locate suspicious shipments and actively monitor the postal system for goods suspected of infringing IPR and have noticed a large increase in this method of distribution, in recent years. The challenges that Thai Customs faces concerning trademark protection are that the rights holder does not file Customs trademark recordation, is not present on the scene to inspect the goods especially when the quantity is small or when seized at the remote border or grant power of attorney to the representative only for trademark registration not for trademark enforcement. |
3.4.6.7.2 Border enforcement
Page 95, Paragraph 3.176
Question: "Upon request of the rights holders or suspicion and in collaboration with the DIP, customs officers are allowed to seize, at the border, trademark- or copyright- infringing goods that are being imported or exported."
• Can Thailand please elaborate on the process for enforcing IPR following seizure of goods at the border?
• Can seized goods be forfeited by the importer?
• Is there a time limit for the rights holder to initiate court proceedings?
• Does Thailand prosecute IPR infringements without the involvement of the rights holder?
(Australia, Japan) As far as trademark inspection is concerned, the process can be initiated by both rights holders and customs officers. Rights holders can file a recordation or inform Customs of any suspicious shipments or Customs can act ex-officio. With regard to copyright, rights holder must make a request to Customs for suspension of release of goods. In ex-officio cases, the rights holder has to formally request a suspension of release of goods within 24 hours after being notified by Customs. When the rights holder cannot determine immediately whether the goods are pirated or counterfeit or not, he/she will be given another 10 days to verify. If the goods are found trademark or copyright infringing, the case will be transferred to the Customs Legal Bureau for administrative settlement or prosecution. After the case is finalized, the infringing goods will be destroyed at the government expense. Section 24 of Customs Act, B.E. 2469 (1926) provided that any article liable to forfeiture under this Act may be seized at any time and any place by the Customs officers, administrative or police officers. With regard to Customs offence, the Customs Department is responsible for initiating court proceedings within 15 years from the date the offence is committed. The rights holder is responsible for verification of the authenticity of the suspected goods and will have to stand as a witness in court. |
Question: "Between 2011 and 2014 the number of arrests for IPRs violations under the Customs Act increased by 38.7%"
Does Thailand attribute this increase to a growing problem or better modes of detection and enforcement?
(Australia) It is very unlikely to draw a conclusion or pattern on our seizures statistics. While the number of cases went up, the quantity of goods decreased by 40%. |
Question: Japan would like to know the scope of intellectual property rights subject to ex officio suspension at the border with respect to import shipments. In addition, Japan would like to know whether the scope of intellectual property rights subject to ex officio suspension at the border with respect to export shipments is the same as that of import shipments.
(Japan) The Thai Customs Department focuses its enforcement efforts on trademark counterfeiting and copyright piracy at the border. With respect to trademark protection, a rights holder can file a Customs trademark recordation form with Department of Intellectual Property (DIP) and the information will be published in http://www.thaiipr.com. Customs officers can ex-officio or take actions based on the recordation submitted to intercept shipment containing goods suspected of infringing trademark. Regarding copyright, since there is no copyright registration, rights holder must make a request to Customs for suspension of release of goods and provide guarantee or file a complaint with the police and notify customs officers. Most border measures are taken against trademark counterfeiting. Copyright owners seldom file a request for suspension of suspected pirated goods. |
4. TRADE POLICIES BY SECTOR
Page 97, Paragraph 4.1
Question: Could Thailand elaborate on the "various short-term support measures (that) were taken over the period 2014/15" for rice producers? What were these support measures and what were the eligibility criteria to access this support?
(Australia) The income compensation for low-income group project is granted to assist the farmers to earn enough income for their livelihood due to the severe drought. The compensation is 1,000 baht per rai to the maximum of 15,000 baht per households. The target farmers are the ones who planted in-season rice crop in 2014/2015 and registered and certified by the Department of Agricultural Extension. The farmers will receive money transfers through accounts opened with the Bank for Agriculture and Agricultural Cooperatives. Minimization of the production cost of rice is the short-term project to help farmers to access cheaper inputs. The government has requested the cooperation from entrepreneurs to sell their inputs (such as seeds, fertilizers and pesticides) in fair price to farmers. |
4.2.3.1 Legal, institutional, and policy framework
Page 101, Paragraph 4.14
Question: Could Thailand please elaborate on the Water Sources Development Scheme? Are the irrigation systems provided under this Scheme on-farm or off-farm?
(Australia) Currently, Thailand has about 20 percent of irrigated agricultural land while suffering from a severe drought. Therefore, the promotion of integrated water management is needed in order to increase the efficiency of agricultural land for farmers in the area of irrigation water thoroughly and fairly by the administration of water supply and drainage. Also, the irrigated areas were increased by the construction of new water delivery system with the scientific principle selection, the supply of water in the farms and communities including the prevention and mitigation of floods and droughts with the construction of the flood way. The irrigation system provides under this scheme is mainly on farm assistance. The land development is to restore soil in cultivated areas continuously by providing the knowledge transfer in improving soil substances and developing their own organic fertilizer etc. There is no incentive in money at all. The measures are taken to support irrigation and land development for sustainable solutions in agriculture. |
4.15 p 101
Question: Do these six schemes including Farmer Market Scheme apply as well to farmers' foreign trade activities (for instance, do they contribute to farmers' exports)?
(Russian Federation) The six guidelines of the MOAC roadmap 2015 are the structural and mechanical development and supports with covering the impact mitigation of natural disasters. They are also included improving the regulatory in accordance with international standard and commitment and area-based agricultural extension without focusing on specific products. |
4.2.3.2 Border Measures
Page 102, Paragraph 4.19
Question:
The report notes that imports of almost all the main agricultural commodities which Thailand produces are subject to the highest tariff rates.
How is Thailand working to increase the competitiveness of these key agricultural industries given its various tariff reduction commitments in bilateral and multilateral preferential trade agreements?
(Australia) Thailand need to concentrate on production technology, research and development, and processed food in value chain intensively in order to increase the value of products. |
Pages 102-103, Table 4.5 TRQ fill rates, 2011-2013
For some agricultural products there are particular importers being eligible for import under tariff rate quotas (Marketing Organization for Farmers, Public Warehouse Corporation, Thai Food Processors' Association, and Thailand's Cooperative of Onion farmers) .
Question 1: Can these companies be considered as state trading enterprises? If no, please explain the reasons.
(Russian Federation) Marketing Organization for Farmers (MOF) and the Public Warehouse Organization (PWO) are state enterprises. Thai Food Processors' Association is an importer of soybeans to be processed into soybean oil for domestic consumption. The Cooperative of Onion farmers is an importer of onion seed for domestic supply of onion. |
Question 2: Could Thailand please explain the reasons why the lowest fill rates (zero) are showed by the Public Warehouse Corporation as an eligible importer for certain agricultural products?
(Russian Federation) For some certain products, there are several sources of import other than from WTO member countries such as: (1) Garlic can be imported under ASEAN-CHINA FTA and AFTA with preferential tariff. (2) Maize can be imported from ASEAN neighboring countries with zero tariff rates under AFTA. (3) Palm oil can be imported from ASEAN neighboring countries with zero tariff rate under AFTA. Hence, WTO quotas are under-utilised. |
Question 3: Could Thailand please explain the rationale for maintaining the mechanism of the eligible importers?
(Russian Federation) The designated of eligible importers for some products are consider on the basis of the actual request, actual import, actual production capacity, and historical import data. These mechanisms are for making sure of actual use of the import products. |
Question 4: Could Thailand please clarify the reasons why soy beans and soy bean cake are subject to import by "listed domestic associations"?
(Russian Federation) The only users of soybean cake in Thailand are those in the stock feed business. The quotas allocation for soybean cake is on "Licensing on Demand" basis. There is no selection bias. |
Page 103, paragraph 4.21
Question: Please explain what specific action Thailand is taking to address concerns about non-transparent TRQ allocation practices for skim milk powder, potatoes, soybean meal, etc.
(US) Thailand's TRQ allocation aims to facilitate trade-flow and reflects local demand. The expansion of import quotas for certain products are taken when there is an increasing in demand, such as: • Milk powder: from bounded 55,000 tonnes to 77,172 tonnes. • Potatoes: from 302 tonnes to 45,000 tonnes • Soybeans: from 10,922 tonnes to unlimited with tariff rate of 2 % instead of 20% as bounded. Normally, the committee's decision of expanding the quotas and reduction of tariff for TRQ products with excess demand will be announced in 3-years time period in advance. This process will facilitate the entrepreneurs in planning their importing strategy. The quota allocation is based on "Licensing on Demand" manner. Eligible importers can submit their requests to concerned committee. Generally, the committee would issue license for importing these products. |
Question: The report points out that "Thailand reserves the right to use the special agricultural safeguard (SSG) on 55 tariff lines".
Could Thailand please elaborate more on the 55 tariff lines subject to the SSG?
(EU) GATT1944 Article 19, the Uruguay Round Safeguards Agreement, and in Article 5, the Special Safeguard Provision, on present Agriculture Agreement allow the country members to make temporarily action to raise their tariff with the special circumstances such as a surge in imports or price fall in order to restrict imports of a product with such products have to post in its schedules of commitments. Thailand has reserved the right to use the Special Agricultural Safeguard (SSG) on the listed of 52 tariff lines on the schedules of commitments on agriculture. However, the SSG has never been applied since then. If the SSG would applied, it is in line with the agreement under WTO. |
Page 105, Paragraph 4.28
Question: Under the Paddy Pledging Scheme, large stockpiles of rice were generated (reportedly 17 million tonnes) and stocks have recently been gradually released onto the market. Can Thailand elaborate on the measures it is using to dispose of the surplus and what impact this is having on both domestic rice prices and global rice market prices?
(Australia) To release 17 million tonnes of rice stockpiles in Thailand, the Government has taken inclusive measures for good management and gradually set up auctions for both domestic and export purchases. The released amount shall be carefully considered by all stakeholders and conducted with transparency approach in order not to affect the domestic prices and the global market prices. |
Question: Over the period 1 October 2014 to 30 September 2015 the Government of Thailand provided soft loans to rice farmers. Could Thailand please elaborate on the nature of these loans and how they were used, what the concessional interest rate was compared to normal market rates, and what percentage of rice farmers made use of the soft loans on offer?
(Australia) The income compensation for low-income group project is granted to assist the farmers to earn enough income for their livelihood due to the severe drought. The compensation is 1,000 baht per rai to the maximum of 15,000 baht per households. The target farmers are the ones who planted in-season rice crop in 2014/2015 and registered and certified by the Department of Agricultural Extension. The farmers will receive money transfers through accounts opened with the Bank for Agriculture and Agricultural Cooperatives. Minimization of the production cost of rice is the short-term project to help farmers to access cheaper inputs. The government has requested the cooperation from entrepreneurs to sell their inputs (such as seeds, fertilizers and pesticides) in fair price to farmers. Reduce interest rate for wet season cropping in year 2014/2015 – by 3 percent/year. The maximum loan amount is 50,000 baht/person (1,430 USD), and loan period does not exceed 6 months. |
Part IV Trade Policy by Sector: Manufacturing, Policy objectives and measures: paragraph 4.69, page 116:
Question: This paragraph notes the limited production capability of Thai manufacturers in high-technology products, and the need to transform Thailand from a low-cost exporter to creating and selling production of a higher value.
Is a lowering or elimination of tariff barriers for products, including high technology products, which serve as inputs, an element in Thailand's strategy to becoming a producer of higher value goods?
(Canada) Yes. |
Question: Does Thailand view rapid tariff elimination provided by trade liberalization initiatives such as the expansion of the Information Technology Agreement as a means of achieving this objective?
(Canada) Yes. |
(7) SERVICES
(ii) Financial services
Page 121 (Para 4.87)
Question(s): With respect to the upcoming FSMP III, would Thai Government please further elaborate its policy and blueprint of further liberalizing the market access for foreign banks? In particular, any planned schedule for granting licenses to new foreign bank branches?
(Chinese Taipei) Please see page 124 paragraph 4.99 for details on liberalization of market access for foreign banks. Further policy implications regarding foreign banks are conditional on the new foreign banks' performance and resulting impact on the Thai financial system, which remain to be evaluated as the new entrants have just recently begun their operations. FSMP III is now under the BOT's consideration and the information is not publicly available yet. |
Banking services
Page 124 para 4.99
Question: How many foreign commercial bank subsidiary applications and licences have been received and granted since the last TPR of Thailand? Are reasons for rejection of the application provided at the request of the applicant? Does the response from foreign bank branches meet any anticipation set before the implementation of the policy? Will the Thai government take any action to further encourage foreign commercial bank branches to apply for subsidiary licences?
(Hong Kong, China) Since 2011, two new foreign commercial bank subsidiary licenses and one branch to subsidiary upgrade have been granted. The license application process is based on prudential measures to ensure that only strongly committed banks of appropriate financial strength can become licensed. Further policy implications regarding new foreign bank licenses are conditional on the new subsidiaries' performance and resulting impacts on the Thai financial system, which remains to be evaluated as the new entrants have just recently begun their operations. The criteria for granting banking licenses are clearly specified through the BOT Notifications. Any interested applicants might inquire for further details during their application processes from time to time. Since 2011, the banks that applied for licenses successfully met those criteria. |
Insurance services
Page 126 para 4.110
The consulting team hired by the Office of the Insurance Commission (OIC) proposed through their guideline that foreign reinsurers should be registered or authorised so that they can be regulated. However, this recommendation has not been adopted.
Question: Why did the OIC decide not to adopt the recommendation from the consulting team? Is the Thai government considering other plans to develop reinsurance supervision?
(Hong Kong, China) The OIC cannot adopt the recommendation because it would be a violation of the insurance law as stated in Sections 7 and 8 of the Life Insurance Act B.E. 2535 (1992), amended by the Life Insurance Act (No.2) B.E. 2551 (2008) and Sections 6 and 7 of the Non-life Insurance Act B.E. 2535 (1992), amended by the Non-life Insurance Act (No.2) B.E. 2551 (2008) . The Insurance Acts prescribe the requirements in which an insurance company must comply with in order to obtain a license and operate in Thailand. The full text of the Insurance Acts can be found at: http://www.oic.or.th/upload/lifeinsurrance/download/883-4137.pdf; http://www.oic.or.th/upload/nonlifeinsurrance/download/884-9305.pdf |
4.7.3 Telecommunications
Page 127, paragraph 4.113
Question: The report highlights the challenges of reforming the telecommunications sector, with the legacy of existing concession agreements creating a disadvantage to new license holders. The last concession agreement in the sector will expire in 2018.
Could Thailand elaborate on efforts to reform the telecommunications sector and how will it manage the expiration of concession agreements?
(Australia) The plans and timeline: According to Section 70 in the Private Investment in State Undertaking Act B.E. 2556 (2013), the state-owned enterprises or the host of BTO (Build-Transfer-Operate) project are required to set up contingency plan after the termination of the concession agreement. |
Question: Are the existing concession operators required to comply with regulations/rules of the regulatory body? If not, how could the Thai government ensure fair competition among the existing operators and new licence holders? Given the last concession agreement will expire in 2018, is there any plan to align the regulatory requirements for both existing operators and new licence holders?
(Hong Kong, China) Yes, all operators are equally treated on the same regulations by law. |
Page 128 para 4.120
Question: Could Thailand ensure investors that frequencies allocated free-of-charge on public grounds to e.g. SOEs will not be used to compete in the market place with private mobile operators who have purchase bandwidth through auctions?
(EU) Thailand can ensure the investors that frequencies allocated free-of-charge on public grounds will not be used to compete in the market place. Frequency bands allocated free-of-charge on public grounds are used with unlicensed conditions, or provided to the public based on public welfare and not through the market place. According to the Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 (2010), all frequency bands allocated for telecommunication business must have gone through auction processes and NBTC will insist this principle to future amendments made to the Act. |
Question: With regard to Cyber Security Bill, could Thailand confirm that the currently licensed private and public International Gateway (IG) operators will be permitted to provide consumers access to global Internet services also in the future instead of being forced to direct their services through a Single Gateway managed by a SOE (notably Communication Authority of Thailand)?
(EU) There is no reference to public International Gateway (IG) in the Cyber security Bill. |
Paragraph 4.122, page 129
Other actions NBTC has taken to implement the Master Plan have included: (a) efforts to ensure that FDI thresholds are not being circumvented. A relevant footnote refers to NBTC Notification on the prescription of prohibited acts which are deemed as foreign dominance.
Question: Could Thailand confirm that the Telecommunications Business Act limits only the amount of equity ownership a foreigner can hold in a Thai company, not the voting shares or foreigners' ability to control the company through preferential shares similarly to the Foreign Business Act?
(EU) In accordance to Section 8 (1) of Telecommunication Business Act B.E. 2544 prescribed the Commission may prescribe the prohibition that the applicant for certain nature or categories of telecommunications business who is a juristic person, shall not commit any other act which has the nature of business takeover by a person who is not of Thai nationality. |
Question: Could Thailand ensure that this Notification on Foreign Dominance does not incorporate any new limitations to national treatment elements, which have not been introduced into its Specific Schedule of Commitment?
(EU) The Notification is based on the authority given by the Telecommunications Business Act B.E. 2544 (2001) amended by (No. 2) B.E. 2549 (2006) . The Notification regulates only Thai companies not foreign companies. Therefore, the Notification does not incorporate any new limitations to national treatment elements. |
Question(s): It is stated that there have been no changes on FDI caps since 2012. According to Telecommunications Business Act, it is stated that in case of juristic person, the shareholding proportion of Thai national shall not be less than seventy-five percent of its total capital, and not less than three fourth of the total amount of the director as well as its authorized person shall be of Thai nationality. We'd like to clarify whether the FDI cap still remains at 25%.
(Chinese Taipei) At the present, The Telecommunications Business Act B.E. 2544 amended by (No. 2) B.E. 2549 (2006) in regards of the applicant for a Type Two and Type Three licenses shall not be a foreigner under the law on foreign business. In pursuant to the Foreign Business Act B.E. 2542 (1999), the foreign shareholding shall not exceed 49% not 25%, respectively. |
Page 130-131 (Paragraph 4.131)
Question: We note that the Thailand Board of Investment offers incentives for maritime transportation services, including corporate income tax exemptions of eight years. Could Thailand provide us with more information regarding the conditions and eligibility requirements for the corporate tax exemptions?
(Singapore) To be eligible for investment promotion for maritime transportation services, an investment project must comply with the criteria of the Marine Department. There is no foreign equity restriction for this activity. |
Air transport services
Page 133 para 4.140
It is noted that foreign companies wanting to provide ground-handling services need to meet the additional legal requirements specified in the Foreign Business Act B.E. 2542 and the Private Investment in State Undertakings Act B.E. 2566 (2013) .
Question: At present, how many foreign companies can provide ground-handling services in Thailand? What are the additional legal requirements specified in Foreign Business Act B.E. 2542 and the Private Investment in State Undertakings Act B.E. 2566 (2013)? Are there similar requirements in other services sectors? Does the Thai government have any plans to remove these additional requirements for foreign companies so as to encourage foreign investment?
(Hong Kong, China) At present, there is no provider owned by foreigners. |
Tourism services
Page 136 para 4.155
The Board of Investment (BOI) offered some incentives for various tourism promotion services under certain conditions as well as various activities to support tourism. These incentives included corporate income tax and customs duty exemptions.
Question: We are interested to know more about the details of these incentives. What are the conditions of application? Are foreign companies eligible for these incentives? If so, will they receive the same treatment as local companies?
(Hong Kong, China) Tourism promotion services and activities to support tourism which are listed on the BOI list of eligible activities are eligible for tax and non-tax incentives from the BOI. Conditions for eligibility vary from activity to activity. Foreign investors receive equal treatment to local investors. |
Report by the Secretariat – WT/TPR/S/326
2 TRADE AND INVESTMENT REGIME
Page 27, Para 2.6
"In order to improve regulatory quality, all government agencies are required to conduct a regulatory impact analysis (RIA) before submitting any draft act to the Cabinet. The RIA consists of ten questions to be clarified by government agencies which consider the regulation's impact on the economy, society and environment.…"
Question: Please introduce the specific measures adopted and factors considered in assessing environment impact during an RIA.
(China) The analysis composes of ten questions to be clarified by the government agencies, such as: what are the objectives and goals of the proposed legislation? What are burdens of individuals caused by the proposed legislation? What are working process and audit method? What are the results of public consultation (if any)? |
2.4.1 WTO
Page 29, paragraph 2.15
Question: The Secretariat's Report notes that Thailand has outstanding notifications "with respect to agriculture (domestic support), TRIPS (response to checklist of issues on enforcement), import licensing (replies to questionnaire), rules of origin, and state trading enterprises (Table 2.2) . Additionally, it has not notified its partial scope RTAs with India and Peru." Please identify in each instance when Thailand will make the applicable outstanding notification(s) .
(US) The FTA between Thailand and India is a Comprehensive FTA that includes Trade in Goods, Trade in Services and Investment. Currently, the FTA negotiations have been progressed more than 90 percent. Both countries will notify the scope of the FTA after the negotiation has been concluded. |
2.4.2 Regional trade agreements
2.4.2.1 ASEAN
Page 32, paragraph 2.19
Question: We continue to encourage ASEAN centrality and Thailand's leadership in liberalizing trade and investment in the region through the ASEAN Economic Community (AEC) . Please explain whether Thailand will utilize the AEC to increase the movement of skilled labor across borders.
(US) ASEAN has concluded seven Mutual Recognition Arrangements (MRAs) to facilitate the movement of ASEAN professionals through recognition of their qualifications: (1) MRA on Medical Practitioners; (2) MRA on Nursing Services; (3) MRA on Dental Practitioners; (4) MRA on Architectural Services; (5) MRA on Engineering Services; (6) Framework Arrangement for the Mutual Recognition of Surveying Qualifications; and (7) MRA on Accountancy Services. |
Question: With reference to section 2.4.2.1 in the Secretariat's report, the planned launch of the ASEAN Community by December 31 2015 draws near, even if several important measures of economic integration remain unimplemented. How does Thailand foresee the progress in implementing the remaining measures of the ASEAN economic community? At the same time, the trade agreements under the Trans Pacific Partnership (TPP) and the expected conclusion of the negotiations on the Regional Comprehensive Economic Partnership (RCEP), divides the ASEAN member states over overlapping and/or conflicting frameworks. Does Thailand see possible positive spillover effects between the various initiatives, or is there a possibility that these different frameworks could limit, rather than utilize the full potential for economic growth in ASEAN as well as Thailand?
(Norway) With regard to the progress in implementing AEC measures, Thailand is of the view that, out of the remaining measures, ASEAN will be able to achieve the so-called 'high priority measures' which are identified as those with greatest impact on trade and could be realistically implementable by the end of 2015, such as the elimination of tariff, the harmonization of standards and conformance, the completion of competition laws in several ASEAN Member States, the development of Strategic Plan of Action for SME Development 2025, the ratification and entry into force of the 6th Package of Financial Services commitments under ASEAN Framework Agreement on Services, the arrangement of ASEAN+1 FTAs etc. However, as agreed by ASEAN member states, the implementation of unfinished measures will further be completed by the end of 2016. Meanwhile, ASEAN Economic Ministers have agreed that some remaining measures, which are the mega projects requiring continual process, budget and resources for full implementation, particularly measures on infrastructure development, will also be deferred and prioritized under the post-2015 agenda. Currently, Thailand is in the process of studying and assessing the impact of TPP Agreement at both country and region levels, since its full text has recently been released. Therefore, Thailand views that it is too early to conclude whether these different frameworks will create spillover positive effects or limit the full potential for economic growth in the region. |
2.4.4 Other agreements and arrangements
2.4.4.2 Asia-Europe Meetings (ASEM)
Paragraph 2.27, table 2.5. page 35
The report states that there have been no major changes to the regulatory and institutional framework governing foreign investment in Thailand over the review period and that the main law remains the 1999 Foreign Business Act (B.E. 2542) which contains a list of restricted activities, stipulating foreign equity limits and approval requirements.
Question: Could Thailand provide more detailed statistical data on the number of companies, value of the investment approvals granted and clarify if a separate license is required on a case-by-case basis on each individual service activity undertaken by the same foreign operator? With regard to FBA license approvals, could Thailand clarify the role of the local industry organisations as part of the Foreign Business Committee?
(EU) Licenses Issued under FBA 1999, classified by nationalities and business Sector, (March 3, 2000 – October 31, 2015) (Unit : Number)
Nationalities
Service Business
Representative office/regional office
Construction, engineering service and project management service with government or State enterprise
Broker or agent business, retailing and wholesaling business
Accounting service business and legal service business
Other businesses
Total
Japan
852
387
245
171
73
7
1,735
Singapore
263
269
28
54
21
3
638
Hong Kong, China
92
114
10
9
6
1
232
Germany
61
80
40
24
12
-
217
Netherlands
134
15
3
16
13
1
182
France
55
48
30
8
3
-
144
Korea (Rep. of)
31
56
41
10
-
1
139
UK
49
50
24
8
3
-
134
China
56
31
29
4
1
-
121
USA
48
43
10
3
4
2
110
Others
308
252
88
58
33
2
741
Total 1,949 1,345 548 365 169 17 4,393
Remark: 1) Other service businesses under List 3(21) of FBA e.g. lending to affiliate, rental service, leasing, hire purchasing, repair of products in particular brand. 2) Other businesses e.g. auctioning, advertising business. 3) Juristic person registered in countries not stated specified listed in table. |
Investment
Paragraph 2.27. of the Secretariat Report WT/TPR/S/326 states "There have been no major changes to the regulatory and institutional framework governing foreign investment in Thailand over the review period." And goes onto state "The authorities indicated that the Interim Government is considering how to amend the act to make it more investor-friendly, to promote more investment and to enhance transparency; however an amendment to the Foreign Business Act is unlikely to be forthcoming in the near future."
Question: What amendments are the Thai authorities considering to make to the Foreign Business Act 1999 to better promote investment and enhance transparency? Please also specify the timeframes for finalising these amendments.
Question: From a purely investment perspective less restrictions on foreign ownership may have a positive impact. Are there any changes in progress regarding The Foreign Business Act?
Question: Are there plans to open up for private ownership, including foreign ownership, in industries currently exclusively state-owned?
Page 129 (Para 4.124)
Question: Will there be further liberalization of market access in the telecommunication sector?
Question: We note that Thailand has implemented a Telecommunications Master Plan to guide its work and priorities over the period of 2012 – 2016. We note that under the Master Plan, there are no plans to change the FDI caps for the telecommunications sector. Does Thailand have any plans to review the FDI caps in the future?
(New Zealand, Norway, Singapore) Thailand undertakes a review of the Foreign Business Act B.E.2542 (1999) annually with a view to improving investment environment. For example, securities businesses and other businesses under the law on securities and securities exchange, derivatives business under the law on derivatives, and serving as a trustee under the law on trust for transactions in capital markets are excluded from the application of List 3 with the issuance of the Ministerial Regulation Prescribing Service Businesses Not Subject to Application for Foreign Business Permission, B.E. 2556 (2013) . |
Question: On tax, we have some concerns over the Thai practice not to consider the tax status of the beneficial owner of investments in the context of publically held investments. Our impression is that Thailand lags behind many other jurisdictions in this regard. Are there any changes in progress resulting in the tax authorities generally looking to the beneficial rather than the legal owner of publically listed securities to determine the relevant tax treatment for an investor?
(Norway) In practice, the Thai Revenue Department takes the tax status of the beneficial owner of investments in the publicly held investments in consideration for determining the relevant international tax treatment rather than the legal owner status. Thailand has many Double Tax Agreements (DTAs) with many countries, and it is covered in the treaty policy that Thailand will use the beneficial owner basis to determine the true beneficiary for tax treatment in accordance with the OECD framework for DTA. However, some of the older DTAs might not cover this topic; nevertheless, Thailand is looking to update the DTA to the current standard. |
2.5 Foreign Investment Regime
Page 36 Table 2.5
List 3 - Businesses in which Thai nationals are not yet ready to compete with foreigners
No foreign equity limits. Approval required from the Foreign Business Committee and permits granted by the Director-General of the Department of Business Development。
Broker or agency businesses, except (a) for underwriting securities or services connected with futures trading of commodities or financing instruments or securities;…
With the issuance of the Ministerial Regulation Prescribing Service Businesses Not Subject to Application for Foreign Business Permission, B.E. 2556 (2013), securities businesses and other businesses under the law on securities and securities exchange, derivatives business under the law on derivatives, and serving as a trustee under the law on trust for transactions in capital markets are excluded from the application of List 3.
Question:Please explain the specific restrictions imposed on foreign institutions to conduct securities trading, futures trading and other business as well as the major progress in the liberalization of foreign investment access in the recent two years.
(China) At present, there is no restriction on foreign equity participation in securities business in Thailand and no limitation on licensing quota. In addition, all securities business licenses are subjected to approval by the Securities and Exchange Commission of Thailand (SEC) under Securities and Exchange Act and the related laws and regulations. |
Page 36, Paragraph 2.28)
Question : Thailand included a ten-year time limit in its GATS Schedule of Specific Commitments of exemption of measure inconsistent with the MFN obligation. However, it is our understanding that this exemption period has already expired. We would like to ask for the view.
(Japan) That is correct, the exemption period has expired. |
Part II. Trade and Investment Regime: Foreign Investment Regime: paragraph 2.32, page 37:
This paragraph notes that Thailand is signatory to the International Convention on the Settlement of Investment Disputes (ICSID) .
Question: As Thailand is signatory to ICSID, can Thailand please provide details on when they are expecting to ratify this Convention?
(Canada) The ratification of the Convention is under consideration of relevant authorities. |
3 TRADE POLICIES AND PRACTICES BY MEASURE
Page 40, paragraph 3.2 Measures directly affecting imports
The EU also notes that the Customs Act No. 21 B.E. 2557, entered into force at the beginning of 2015, incorporates provisions concerning advance rulings. In EU's understanding, the Customs Department has issued separate Customs Notifications to implement the advance rulings with specific timelines in each process and, in particular, that the ruling shall be issued within 7 days from the date the Customs Department has received all ''sufficient'' information pertaining to the request for the ruling.
Question: Considering that the law does not give a definition of "sufficient information" how does Thailand ensure that the provisions of the advance rulings as presented in the Customs Act and the relevant Customs Notifications are implemented effectively and impartially when it remains the discretion of customs official handling the request to determine at what point the information provided to the Customs by the applicant is ''sufficient''?
(EU) When the Customs officers have found that the provided information meet with the Customs laws and related Notification, the Customs officers will issue the ruling respectively. |
Page 40, paragraph 3.10
Question: What are the principles and standards for applying for the "gold card" treatment? Please provide details on the Gold Card Scheme.
(China) Gold Card Scheme was one of the measures to facilitate Customs Procedure for importer and exporter. The Customs Department would grant the gold card status for importers or exporters with good record and reliable background with a privilege on Customs procedure. Qualification of Importer and Exporter to apply for Gold Card Scheme (1) Being the juristic person registered in Thailand (2) having the paid-up capital not less than 5 million baht (3) Carrying on its business related to import or export not less than three years and be able to undertake the customs procedure by electronic means according to the criteria prescribed by the Customs Department (e-customs), or hire the customs broker with privilege status. (4) Being member of the Federation of Thai Industries or the Thai Chamber of Commerce or the Thai National Shippers' Council or the Thai Gold Card Importer & Exporter Association. Having a stable financial status based on the profit shown in the financial statement and approved by those associates. (5) Having a stable financial status based on the profit shown in the financial statement certified by auditor and submitted to the Ministry of Commerce. With that regard, the applicant's business must gained profit for the last three accounting years retrospectively. (6) Having no record, in the customs offence concerning smuggling according, the offence concerning document forgery and using such documents according to the Thai Criminal Law. The Customs Department will retrospectively check the historical record in customs violation three years from the date of submission. (7) Deposit a bank guarantee, securities or otherwise guaranteed approved by the Customs Department in the amount of 2 million baht. In case of being member of "Clear Customs Project" the bank guarantees Insurance will be reduce to 1 million baht. (8) Having an appropriate workplace of business and having headquarter being located at the address as registered at the Department of Business Development, Ministry of Commerce. Benefit for Importation • Processing import procedures via "Green Line" • A manifest is written off after the clearance of goods • The goods are exempted from examination unless it is a random examination Benefit for Exportation • Processing export procedures via "Green Line" • The goods are exempted from examination unless it is a random examination • Drawback claims as well as tax and duty compensation claims are approved at the time of filing. • Other future privileges as determined by the Director-General. |
Question: How was the shifting of beneficiaries of the Gold Card Scheme realized around 2013? Which institutions are shifted to be authorized economic operators?
(China) As from 2013, the beneficiaries of Gold Card Scheme are being shifted to the Authorized Economic Operator (AEO), Gold Card status expired on 1 October 2013. Thus, the Thai Customs Department adopted the SAFE FoS by signing in Letter of Intent on May 9, 2006 to stimulate and express the intention to implement WCO SAFE FoS. AEO Programme under the pillar two of WCO SAFE FoS was fully implemented on February 2013 for exportation and importation cover two categories of operators; (1) importer/exporter (2) customs broker Its framework highlights on global trade security as well as the global trade facilitation and emphasizes on the security measure of the operators. |
Page 40, paragraph 3.11
Question: The Secretariat's Report states that "[m]easures are being taken to address persisting corruption allegations." Please identify and describe what measures are being adopted to address corruption allegations in customs.
Also, we understand that Thailand has notified the WTO that it has ratified the WTO Trade Facilitation Agreement. We welcome this development. Though not described in the Secretariat's Report, we also understand that Thai Customs has amended its Customs Act during the period under review, including steps necessary to implement reforms consistent with the Trade Facilitation Agreement (e.g., changes to its procedures related to advance rulings) . Please describe the amendments to the Customs Act that have been adopted.
(US) The Customs department has issued the Customs Act (No.21) B.E. 2557, the Customs Act (No.22) B.E. 2557 and the Act Amending Emergency Decree on Customs Tariffs B.E. 2530 (No.8), B.E. 2557. The changes introduced include the provisions on the definition of "transit" and "transshipment", the introduction of advance rulings, and the provision that electronic data shall be as legally binding as a customs procedure done by paper documents. |
3.2.1.1 Registration and documentation
Paragraph 3.11 of the report of the Secretary indicates that ... "The improvement of customs procedures and trade facilitation in general remain important objectives of the Thai government, in which the private sector has a keen interest (section 3.2.1.2) . The main policy objectives are transparency, simplicity, honesty and electronic processing quickly and safely. Action is being taken following persistent allegations of corruption. Thailand completed the internal process necessary to ratify the Agreement on Trade Facilitation WTO in late 2015, when it also established a National Trade Facilitation Committee in accordance with that agreement. "
Question: Thailand could further information on measures taken to prevent and combat corruption c HAT has been the effectiveness of these measures?
(Colombia) The measures customs takes to prevent corruption are e-customs system with published manuals for private sectors, and developing National Single Window system, the system transmits data information involved in licenses directly between the customs and other relevant agencies. |
Part III. Trade Policies and Practices by Measure: Measures Directly Affecting Imports, Tariffs, Applied MFN tariffs, Table 3.1, page 44:
The number of lines with nuisance applied rates has decreased from 2011 to 2014.
Question: Is Thailand considering a further decrease or elimination of these nuisance rates going forward?
(Canada) The Ministry of Finance is in the process of reformation the import tariff structure. |
3.2.1.2 Customs valuation procedures
3.18. During the review period, customs valuation procedures remained unchanged. Under current procedures, valuation takes into account information on invoices and other documents, such as country of origin, quantity, composition of value, and description of goods. Valuation is based on the c.i.f. (cost, insurance, and freight) price of imports. Customs officials accept the declared value shown on the invoice as the transaction value, i.e. the export price actually paid or payable for the goods when sold to Thailand, adjusted and meeting prescribed conditions. If the transaction value cannot be applied, other methods are used in the following sequence: the transaction value of identical goods and similar goods; the deductive value; computed value; and a fall-back estimated value. Importers may appeal valuations within 30 days. The decision of the Appeal Committee is final except if the importer raises concerns in a tax court. The "advance ruling" policy for customs valuation available as an electronic advance ruling on valuation system was suspended in March 2015 due to doubts about the authenticity of documents submitted electronically. Data on under-invoicing cases is only available when officially requested by a market operator."
Question: With regard to the issuance of electronic advance rulings on valuation system, we would like Thailand to provide an update on the possible continuation of such issuance, and the measures that were implemented to resolve the doubts about the authenticity of documents submitted electronically.
(Mexico) With regard to the issuance of electronic advance rulings on valuation system, we would like to inform that the policy has been suspended due to developing of the electronic system has not yet completed. |
Question: Are advance rulings on valuation method is so physically issuing or not issuing such advance rulings?
They could share their experience on the issue of advance rulings electronically?
(Colombia) The advance ruling regulation was issued as the Customs Act no.21 B.E. 2557 and the notification no.38 B.E.2558. The case studies which are modified from advance ruling are on the process to be electronically published on the Thai customs website soon. |
Page 42, paragraph 3.19
Question: The Secretariat's Report notes that "there seems to be concern about the lack of transparency in Thailand's customs regime and the significant discretionary authority exercised by Customs Department officials." We understand that Thai Customs is working on further draft amendments that would make changes to the penalties and reward system that has long been a concern to the United States and other trading partners. Is Thailand considering changes to the penalties and reward scheme that eliminate the conflict of interest created by the direct benefit to customs officers involved in the investigation and incentivizing the practice of retrospective enforcement resulting in the application of retroactive tariff payments and fines? Will the changes also allow for the penalty system to take into account the intent in the levying of penalties?
(US) The provisions on penalties and intent have been reviewed with a view to ensuring that penalties are proportional to the degree of wrongdoing. The provisions relating to the reward scheme have also been reviewed. At present, the draft Customs Act, B.E. …, has been approved by the Cabinet. It is now under consideration of the Office of the Council of State. |
3.22. During the review period, there was no fundamental change in Thailand's tariff legislation. Whereas changes to statutory rates require legislative approval , 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 a "special duty" for any goods at a rate not exceeding 50% of the relevant statutory rate in the Tariff Schedule (section 3.2.2.7) . The Customs Department indicated that currently it does not apply this provision."
Question: In reference to the possibility of setting a "special duty", we would appreciate more information on the procedure to be followed for seeking approval of the Cabinet, and the relevant factors that would be assessed and considered in the proposal to be submitted for that purpose.
(Mexico) The relevant factors according to section 12 of the Customs Tariff Decree B.E. 2530 are national economy, public welfare or national security. |
APEC Environmental Goods List
Paragraph 3.23 of the Secretariat Report WT/TPR/S/326 states "MFN applied tariff rates on 54 items contained in the September 2012 APEC List of Environmental Goods that directly and positively contribute to green growth and sustainable development objectives remain subject to tariffs of 5% or less. And at paragraph 4.22 of the Thai Report WT/TPR/G/326 states "Furthermore, Thailand supports APEC's ground breaking commitment in 2012 to reduce the applied tariff rates of the APEC List of 54 Environmental Goods to 5% or less by the end of 2015, which is a considerable contribution to trade liberalization objectives under the Bogor Goals and the green growth and sustainable development agenda."
Question: Can Thailand update on progress reducing tariffs on the APEC Environmental Goods List? Which products from the list remain outstanding and does Thailand expect these to be implemented in time for the APEC Summit?
(New Zealand) The tariffs on 43 products out of 54 products in APEC EGs list have been reduced to 5% or less. The remainder is subject to the consideration of the Ministry of Finance and other related agencies. |
Page 45,Para 3.26
3.26. …In particular, non-agricultural products continue to face considerably lower tariff rates (10.1%) than agriculture items (WTO definition) (34.7%); notably beverages, spirits, and tobacco, coffee and tea, and dairy (Table A3.1) remain significantly higher, thus reflecting sensitivities in these sectors.
Questions: Thailand imposes a 30% ad valorem duty on imported tobacco leaves but levies no duty on tobacco leaves imported from ASEAN members. Will tobacco leaves imported from China enjoy the same treatment of tariff reduction and exemption as those from ASEAN members?
(China) Tobacco tariff exemption is implemented according to the agreement of ASEAN. But the agreement of ASEAN-China hasn't referred to tariff reduction and exemption yet. |
3.2.2 Tariffs
3.2.2.7 Special duties
Page 47, paragraph 3.32: The Secretariat's Report states that Thailand's Investment Promotion Act allows its Board of Investment (BOI) to impose special fees on imports of goods deemed similar to those produced by BOI-promoted domestic commercial entities, although no recourse to this measure has taken place since 2004. Please explain whether Thailand intends to abolish the BOI's authority to impose such special fees on imports in the future.
Thailand Reply: Although the BOI retains its authority according to the Investment Promotion Act Article 49-50, this measure has not been exercised since 2004.
U.S. Follow-Up: Given WTO compliance concerns raised by multiple Members in the past, please explain how the authority provided to BOI in the Investment Promotion Act Article 49-50 is a WTO consistent measure.
(US) Although the BOI retains its authority under Article 49-50 of the Investment Promotion Act, Thailand still monitors the WTO consistency of all measures when exercising one and has successfully managed to steer clear of the measure since 2004. |
3.2.4 Import prohibitions and licensing
Page 48, paragraph 3.38
Question: The Secretariat's Report notes that "the Board of Investment may request 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." Beyond the special fees listed in paragraph 3.2.2.7, what are the other forms of protection that can be used before the Ministry of Commerce bans the import? Please clarify how often the Ministry of Commerce has banned imports in this context. What factors does the Ministry of Commerce consider in making the decision?
(US) During the current review period (2011-2015), there has not been any import ban of this nature. |
Pages 48-51, Table 3.2
Question: This table in the Secretariat's Report lists those products subject to import licensing and prohibitions, as well as the rationale for the restriction or prohibition. There are a number of products where the rationale listed includes accommodation of the domestic industry or domestic production, including drugs and pharmaceuticals, silk yarn, and worked monumental and building stone. Please provide further explanation of what is meant by accommodation of the domestic industry or to accommodate domestic production. Does this mean that the licenses are used to protect the domestic industry?
(US) Unlike other goods, pharmaceutical products directly affect humans' or animals' health and lives. The public must be assured of their quality, safety, and efficacy before administering them. Importing license is one of the health necessary measures imposed by the National Drug Regulatory Authority (i.e., FDA, Thailand) to ensure that only assured quality medicines will be available to the public. With regard to stone, it is to administer the importation and utilization of marble and building stone. |
3.2.4.2 Import licencing
Paragraph 3.41
Products subject to non-automatic licensing currently include: i) 22 agricultural items under tariff quota (section 3.2.2.6 and 4.2.3.2) and processed goods (including abuterol or salbutamol, caffeine and its salts, clenbuterol, fishmeal with a protein content of less than 60%, machinery and parts thereof which can be used to violate copyrights of cassette tape, video tape, and compact disc, marble (except marble block of 50x50x50 cm), ii) medals and coins, iii) original sculptures and statuary in any materials, iv) certain re-treaded or used pneumatic tyres of rubber for buses or trucks, v) used diesel engines with displacement of 331-1,100 cc, vi) used motor vehicles for the transport of 30 or more persons, vii) used motorcycles, viii) certain volatile alkyl nitrite substances, ix) waste and scrap of plastics, x) worked monumental or building stone (Table 3.2) .
Question: Could Thailand justify the reasons for maintaining non-automatic import licensing for marble (HS 2515) and worked monumental stone (6802)?
(EU) To administer the importation and utilization of marble and building stone. The products that require for import licensing are under HS 2515 (except 2515.12.10), 6802.21.00, 6802.23.00, 6802.29.10 and 6802.29.90. |
Question: Could Thailand explain under which circumstances the Ministry of Commerce (MOC) is granting the licenses?
(EU) The import permit is granted consistent with the need for utilization. |
Paragraph 3.42, page 52
Question: The EU understands that, currently, there is no (mandatory) standard and detailed inventory reporting requirement applied on automotive tyres produced domestically. Could Thailand elaborate on the compliance of the import licensing measure and the inventory reporting requirement on automotive tyres with the WTO commitments, in particular the GATT 1994 Article III and the WTO TBT Agreement Article 2?
(EU) Thailand is always compliance with WTO commitments. TISI is in the process of drafting mandatory standards for pneumatic tyres, as list below, that are expected to complete in 2016, and will take effect around 2018. (1) Pneumatic Tyre for Motor Vehicles and Their Trailers (2) Pneumatic Tyre for Commercial Vehicles and Their Trailers (3) Pneumatic Tyre for Motorcycles and Mopeds |
Page 54, Para 3.52
Question: What definition of "international standard" use Thailand for the production and delivery of technical regulations?
(Colombia) Standard used globally as a reference in the production and trading. We used international standards (i.e. ISO and IEC) as references. |
3.52. During the review period Thailand's Strategic Plan (2011-2015) was aimed at developing standards that meet sectoral needs and international standards, developing a conformity assessment system in line with international guidelines, and increasing standards awareness for all stakeholders.
Question: How does Thailand develop this conformity assessment system? What factors are considered? Please provider its specific framework and elaborate on the administration on food safety therein.
(China) Main bodies are responsible for standards and accreditation of organizations for conformity assessment: the Thai Industrial Standards Institute (TISI), under the Ministry of Industry; and the National Bureau of Agricultural Commodity and Food Standards (ACFS), under the Ministry of Agriculture and Cooperatives responsible for accreditation of organizations for conformity assessment. |
Paragraph 3.53
Question: Do you currently applies Thailand Regulatory Impact Analysis in the development and application of technical regulations, in order to choose the best regulatory option, in imposing mandatory technical requirements?
(Colombia) Under the review process for all new legislation proposals established in 2005, by a Royal Decree, all government agencies are required to conduct RIA before submitting any draft act to the Cabinet. The analysis composes of ten questions to be clarified by the government agencies, such as: what are the objectives and goals of the proposed legislation? What are burdens of individuals caused by the proposed legislation? What are the results of public consultation (if any)? |
3.2.6 Standards and other technical requirements
3.2.6.1.1 Voluntary, compulsory, national, and aligned standards
Paragraphs 3.54 to 3.57
Question: What is the rationale for the discrepancy between the TISI standard on ceramic tiles (TIS 2508/2555) and the international standard (ISO 13006:2012)?
(EU) Thai Industrial Standard on Ceramic Tiles (TIS 2508: 2555(2012)) uses ISO 13006:1998 as reference. Although ISO standard 13006:1998 has currently been revised to become ISO 13006:2012, there is no change in the content of the standard and therefore is not different from TIS 2508: 2555(2012) to a large extent. |
Question: Could Thailand explain the obligation to carry out an on-site certification within the manufacturing facilities in the country of origin, contrary to ISO standards, for a product that could be easily tested in laboratories?
(EU) (1) TISI Product certification is carried out by using system 5 as specified in ISO/IEC 17067. (2) TISI is not allowed to operate product certification for manufacturers in the country of origin. Due to the provisions of the law, product certification is license for importer |
3.54. On 25 January 2014 a mandatory conformity assessment procedure was imposed on ceramic tiles, which requires a seemingly burdensome and costly certification process (e.g. on-site certification, the disclosure of manufacturers' confidential information and certification per line of production) . Concerns were raised about the practicalities of the new standard, in particular the discrepancies between Thai and international standards ISO 13006:2012 requiring the TISI mark to be attached to each and every tile and differences in the water absorption levels."
Question: What is the reason for the standard on ceramic tiles not to be harmonized with the international standard ISO 13006: 2012?
(Mexico) Thai Industrial Standard on Ceramic Tiles (TIS 2508: 2555(2012)) uses ISO 13006:1998 as reference. Although ISO standard 13006:1998 has currently been revised to become ISO 13006:2012, there is no change in the content of the standard and therefore is not different from TIS 2508: 2555(2012) to a large extent. |
Question: Based on the concerns raised, were there any changes made to the standard or conformity assessment procedure?
(Mexico) None. |
Paragraph 3.54
Question: Since 2011 Thailand has signed mutual recognition agreements with other countries in order to facilitate trade between them as provided in paragraph 6.3 of the Agreement on Technical Barriers to Trade (TBT) of the World Trade Organization (WTO )?
(Colombia) None |
Question: Why yes / Why not? If so, how many Mutual Recognition Agreements signed Thailand since and with which countries?
(Colombia) None |
Paragraph 3.55
Thailand has a National Accreditation with international recognition, among others, perform accreditation activities Organizations Conformity Assessment, as stated 6.1.1 of the Agreement (TBT) (WTO)?
(Colombia) Thailand Accreditation is operated under the Standardization Act B.E. 2551 (2008) as one single network. The network includes: • Office of the National Standardization Council of Thailand (ONSC), the Thai Industrial Standards Institute (TISI): provide accreditation to certification bodies, inspection bodies, testing and calibration laboratories. • Department of Science Services (DSS): provides accreditation to testing laboratories in the fields of Physics, Chemistry, and Bioscience, as well as proficiency testing program providers • Department of Medical Sciences (DMSc): provides accreditation to public health, testing and medical laboratories. • The National Bureau of Agricultural Commodity and Food Standards (ACFS): provides accreditation to food safety certification bodies as well as product certification bodies for Good Agricultural Practice. The details are available on website at http://www.tisi.go.th/eng/index.php/item/126. |
Page 55 (Para 3.56)
Question: Which phase Thailand has participated in the APEC MRA on Conformity Assessment of Telecommunications Equipment (APEC Tel MRA), and who is the Designating Authority?
(Chinese Taipei) At present, Thailand policy on participation in APEC MRA on Conformity Assessment of Telecommunications Equipment is unclear. Even though we didn't participate in MRA, the NBTC issued the notifications that can accept the result of testing lab in foreign countries and the process is quicker. |
3.2.6 Standard and other technical requirements
3.2.6.2 Sanitary and phytosanitary measures
Page 56, paragraph 3.58
Question: The Secretariat's Report states that responsibility for sanitary and phytosanitary measures remains shared between: the ACFS, the Departments of Agriculture (plant health), Livestock Development and Fisheries (animal health) of the Ministry of Agriculture and Cooperatives (MOAC), and the Food and Drug Administration (FDA) of the Ministry of Public Health. Please advise which of these government entities is responsible for assessing risk and setting standards on ractopamine. Since the Codex Alimentarius Commission established MRLs for ractompamine for pork, Thailand has stated that it is in the process of conducting a risk assessments. What were the results? Please explain when Thailand plans to establish MRLs for ractopamine.
(US) The Department of Livestock Development has banned the use of beta agonist compounds in feed and food, including ractopamine both in domestic as well as import since 2003. Risk analysis by Codex considers the safety of consuming 4 kinds of tissue only while consumers in Thailand consume many internal organs. The information from the additional study of China which evaluated by JECFA expert found high-level residues in other internal organs. Thailand maintains a monitoring and surveillance programme for illegal use of beta-agonists, such as collection of samples of animal feed and animal urine to determine the residues at farm, animal quarantine checkpoints and slaughterhouses. |
Question: Please specify the certain control (supervision) measures for agricultural products (both animal and plant origin) and for fish exported products. What is the procedure and frequency of such measures?
Question: Is there any difference in volumes (quantities) or in any other indicators in conducted researches for imported and domestic products?
Question: What authority (body) is responsible for SPS risk assessment and scientific evidence?
(Russian Federation) Normally, the feed exporting establishments must apply with GMP/HACCP following CODEX and importing country requirements. After they pass GMP/HACCP, they will receive DLD feed establishment code "VCN: Veterinary Control Number". The DLD feed auditors will audit feed mills for GMP and HACCP certification at least once time per year. The GMP/HACCP certificates have valid for 3 years. Normally, Thailand does not have a central agency to conduct risk assessment specifically. We issue regulations in accordance with international standards. When international standards do not exist, the concerned agency is responsible for conducting risk assessment for such regulations. |
3.2.6.2.1 Food standards-setting framework
Paragraph 3.58. of the Secretariat Report WT/TPR/S/326 states "Food safety control measures include hazard prevention, inspections and surveillance on imports and domestic production apparently based on the risk analysis principle and scientific evidence."
Question: Could Thailand please advise whether it is considering any changes to the legislative Act for "Controlling the Marketing Promotion on Food for Infant and Young Children and other Related Products" (commonly known as "The Milk Code") and if so, what are those changes? Will any changes be in line with international standards, in particular the World Health Organisation's "International Code of Marketing of Breast-Milk Substitutes"? Please provide a copy of the latest draft milk code governing the sale of infant formula and nutritional products and identify any amendments that Thailand is considering more generally to its milk code. Also, please clarify when Thailand intends to finalize this code, as well as the process of stakeholder consultation. In instances where the draft deviates from the international guidance, please provide the scientific rationales to support and justify those deviations.
(New Zealand, US) The current Thai laws does not specifically cover marketing of food for infant and young children. Therefore, the Milk Code was drafted to address the issue and was approved by the cabinet on December 1, 2015. The Draft is consistent with the MFN and National Treatment under the WTO GATT 1957, since the Milk Code will apply to both domestic and imported products. As for the details on marketing restrictions, it is consistent with the International Code of Marketing of Breast-Milk Substitutes, which is an international standard of advice, as well as the WHA 54.2 resolution on Infant and young child nutrition. The stakeholder consultation process has been conducted on May 18, 2015. The consultation involves over 600 participants from the public sector, private companies, milk powder manufacturers, doctors, NGOs, etc. The draft of the Milk Code can be obtained by request from the Department of Health. |
Page 56 paragraph 3.59
Question: Are there any legal acts in Thailand for SPS requirements (measures) which result in a higher level of sanitary or phytosanitary protection than those based on relevant international standards, guidelines and recommendations? Please clarify such legislation. Are there any agreements on equivalence with third countries? Please provide the internet link where we can get acquainted with such agreements.
(Russian Federation) Thailand' SPS requirements comply with the CODEX Alimentarius and the Agreement on Technical Barrier to Trade, as well as the Agreement on the Application of Sanitary and Phytosanitary Measure of the WTO. Additional information on Thailand standards can be found here: http://www.acfs.go.th/eng/standard_act.php. |
Question: The general standard in the Thai food safety standard system only regulates limits of pollutants, microbes, pesticides and veterinary drugs residues for fruits and vegetables, meat and aquatic products, as well as the usage amount of certain food additives. What are the relevant regulations for other kinds of food? How does Thailand regulate the safety of other processed food like dairy products?
(China) The regulations are generally classified into horizontal and vertical regulations. The vertical regulations are specific requirements for quality and safety of food products such as jams, jellies and marmalades, coffee, infant formula, ice cream, and dairy products, etc. The horizontal regulations apply to all foods, for examples, food contaminants, labeling, food additives, pesticide residues, etc. The process of legislation is as described in Para 3.59 as on the basis of international standards, risk analysis principle, and consultation of stakeholders including consumers. |
3.2.6.2.2 Quarantine requirements
Paragraph 3.62, page 57
3.62 Imports of chilled or frozen meat must have an import permit from the Department of Livestock Development (under the Ministry of Agriculture and Cooperatives (MOAC)) and a health certificate from the country of origin. Upon arrival, each consignment of chilled and frozen meat must be inspected by the Animal Quarantine Station at the port of entry."
Question: We would like to request more details on the type and scope of inspections carried out in the port of entry, which are referred to in paragraph 3.62.
(Mexico) Thailand has conducted the control of importation of live animals and animal products under the Animal Epidemic Act B.E. 2558. The Animal Quarantine Station at the port of entry is a responsible agency for control the animal disease of live animals and animal products from the country of origin. The veterinary officer at the port must inspect the products especially the diseases that Thailand has concerned by collecting sample sending to the Government laboratory. |
The report mentions that Imports of chilled or frozen meat must have an import permit from the Department of Livestock Development. The EU notes that the import permit is required for the imports of not only chilled and frozen meat, but also all imported animals and animal origin products (i.e. day-old-poultry, boar and bovine semen and etc) .
Question: Could Thailand explain the reason(s) for requiring such an import permit considering that there is already a thorough assessment procedure carried out before trading partner countries are allowed to export meat to Thailand and have to issue a health certificate accompanied with each consignment?
Question: Could Thailand explain whether such import permit is required for each imported consignment?
Question: Could Thailand explain in which timeframe such import permit is issued?
(EU) The import procedure is legally proceeding under the Animal Epidemic Act. B.E.2499 (1956), Ministerial Regulation and DLD legislation. An Application Request for import permit of each consignment shall be submitted to an authorized veterinary official at the port of entry. The submission should not be less than 7 (seven) days prior to an importation. A specific animal health requirements relevant to a commodity subjected to be imported into Thailand, shall be attached to the Import Permit. The imported animals or animal products of each consignment must be accompanied by a Health Certificate signed by a full-time authorized veterinary official of the government of the exporting country, certifying all conditions as stated in the animal health requirements attached to the Import Permit. |
Question: Could Thailand explain under which circumstances import permits are not granted and/or are granted for a limited quantity?
(EU) There is no a limited quantity per import permit of each consignment. However, the limited quantity of each consignment is under control by the capacity of container or airfreight. |
Question: Could Thailand clarify whether the country is currently implementing system-audits on a country-by-country basis, with pre-listing approach based on international standards?
(EU) Regarding the audit basis, the system audits or by plant basis is depending on the request of exporting country. Currently, Thailand has implemented system audit basis for several countries with pre-listing such as the country from EU members (UK, France and Netherlands) . |
Question: Could Thailand indicate which is the estimated timeline for the import risk analysis process (i.e. from the submission of the questionnaire, on-site inspection, audit report, list of approved establishments to the agreement on health certificate)?
(EU) Currently, there is no specific timeline because the timeline for import risk analysis process is up to the several factors. |
Question: With reference to the imports of chilled or frozen meat, could Thailand justify the cost of inspections for consignments and provide information on the cost paid by domestic producers for the same inspections? Could Thailand please clarify if the country has foreseen an increased budget for the inspections in various third countries, including that for additional inspectors?
(EU) Thailand allows import of bovine products considered safe commodities as listed in the chapter of BSE of OIE regardless of the BSE risk status of the exporting country. The exporting country shall follow the requirement for importation beef and beef products and the additional requirement for importation live bovine or bovine products regarding BSE risk status in accordance with the OIE standard. The budget for the inspection is depending on the budget of fiscal policy. |
Question: Could Thailand clarify whether they are planning to adopt a risk-based approached re-audit instead of the current fixed re-audit every 2 years?
(EU) Recently, DLD has announced the general provision of DLD legislation, stipulate applying for permission, issuing for permits, procedures for importation and exportation, and transit of animals and animal carcasses through the Kingdom of Thailand B.E.2558 (2015) which is carried out under Animal Epidemic Act. B.E.2558 (2015) dated 16 October 2015. The rules has mentioned the on-site inspection and evaluate standard practice of the establishments interested to export livestock commodities in order to approve as the accredited establishments to export animals or animal products into Thailand for the period of 3 years since the date of issuance of the acceptance letter of DLD. |
Question: Could Thailand kindly provide the current state–of–play of the amendment of the Ministerial Regulation stipulating import permit fee of pig offals?
(EU) Currently, Department of Livestock Development is in an ongoing process of the amendment of the Ministerial Regulation stipulating inspection fee of livestock commodities which regulated under the Animal Epidemic Act. B.E.2558 (2015) . |
Question: Could Thailand please provide information about seafood import requirements?
(Russian Federation) Seafood import requirements are to comply with: (1) Detection/quarantine disease on aquatic animal requirements under the Animal Epidemics Act B.E. 2558 (2) Food safety requirements under the Food Act B.E. 2558. (3) Prohibition requirements on IUU fish and Fisheries products to import, export, transit and transship into national jurisdiction under the Royal Ordinance B.E. 2558 |
Question: Please specify which legal act sets out sampling rules for agricultural (animal and plant) products in Thailand? and please clarify could the mentioned products be re-inspected after they entered Thailand?
(Russian Federation) The Thai Agricultural Standard Act. B.E. 2551 (2008) and the Plant Quarantine Act. B.E. 2507 (1964) are the legal frameworks for the sampling rules. In addition to the SPS inspection at the borders, Thailand Food and Drugs Administrations are responsible for food safety inspection. |
Page 57, paragraph 3.62
Question: The Secretariat's Report states that "[i]mports of chilled or frozen meat must have an import permit from the Department of Livestock Development (under the Ministry of Agriculture and Cooperatives (MOAC)) and a health certificate from the country of origin." However, Thailand has, for many years, not issued any import permits for poultry even though a market exists and no sanitary or other issue has been identified. Could Thailand please explain the reasons for the unavailability of import licenses for poultry?
(US) Thailand have conducted the control of importation and exportation of live animals and animals products under the Animal Epidemic Act B.E. 2499 until now, there is the new law which is the Animal Epidemic Act B.E. 2558. As stipulated by the Animal Epidemic law, no animal nor animal products shall be allowed for importation into/ or exportation from, or transit in Thailand without a permission from the Director-General (DG), Department of Livestock Development or an authorized person designated by Director-General. Under the permission (a permission document for importation is import license, exportation is export license, and transit is transit license) appropriate protocol and health conditions are designated in compliance with regulations and risk assessment. |
Paragraph 3.65, Page 58
Question: With regard to BSE import measures, does Thailand allow imports of the bovine products considered safe from an SPS point of view as listed in the relevant OIE standard regardless the OIE country BSE status of the exporting country?
(EU) Thailand allows import of bovine products considered safe commodities as listed in the chapter of BSE of OIE regardless of the BSE risk status of the exporting country. The exporting country shall follow the requirement for importation beef and beef products, and the additional requirement for importation live bovine or bovine products regarding BSE risk status in accordance with the OIE standard. |
Question: Could Thailand clarify whether imports of bovine and bovine products are allowed from countries with an OIE country BSE status which is controlled or undetermined?
(EU) Currently, DLD has allowed import beef and beef products from countries with an OIE country BSE status which is controlled or undetermined such as the United Kingdom. The exporting countries shall comply with the procedure for approval for import of live animals and/or animal products into Thailand, the requirement for importation beef and beef products and the additional requirement for importation live bovine or bovine products regarding BSE risk status. |
Page 58, paragraph 3.65
Question: The Secretariat's Report states that "Thailand has not yet lifted its long-standing ban on feed or feed ingredients from the United States that contain, or are derived from, ruminant animals despite the World Animal Health Organization (OIE) having recognized the United States as a negligible bovine spongiform encephalopathy (BSE) risk country in 2013." Nevertheless, the United States recognizes that Thailand has allowed import of U.S. deboned beef from animals less than 30 months of age and has made progress towards reopening the beef market fully to U.S. beef and beef products. However, final approval for restoring full market access is still pending. Please explain when Thailand intends to restore full market access for U.S. beef and beef products, consistent with the United States' negligible risk status.
The Secretariat's Report also states that Thailand requires inspection and approval of U.S. manufacturing facilities that produce certain animal-derived products as a condition of import. According to some sources, such audit is required every two years. Could Thailand please explain the rationale for the audits in light of its obligations under the WTO SPS Agreement?
Finally, the Secretariat's Report also states that "[d]omestic food safety inspection fees for uncooked meat are significantly lower than those affecting imports in the form of import permit fees." Please identify what concrete action Thailand is taking to address the issue of these discriminatory inspection fees.
Question: What is the rationale for differentiating between domestic food safety inspection fees for uncooked meat and those affecting imports in the form of import permit fees?
Question: If any, please provide more details on import permit fees. How do they relate to inspection fees? What products are subject to these fees? What is the purpose (reason) for import permit fees?
(EU, US, Russian Federation) Domestic fee was collected according to Animal Slaughter Control and Meat sale Act B.E. 2535 (1992) . Domestic fee cover slaughter fee, fee for using slaughter house, and lairage fee or fee for using animal handling facilities before slaughtering; etc. These fee were charged by local administrative authority under Ministry of Interior. This Act was enacted for the safety benefit for local consumption and supporting free trade in the country. As the inspection fee for import which was collected for inspection purpose in order to assure safety of meat product when importing to Thailand. This fee was charged for testing animal and animal products which cover inspection process, collecting the sample, laboratory diagnosis; etc.. This fee was in the regulation under Animal Epidemic Act. From this point of view, it is noted that Domestic fee and Inspection fee were collected for the purpose of safety in animal product; however, collection of fee for use in Domestic fee and Inspection fee is rather different in terms of sort of fee, intention for use of fee in the process, different Act. |
Question: Please specify the legislative act that sets up the requirements for beta-agonists in the imported products especially requirements for inspections number. What other feed additives, growth promoters and antibiotics are banned for the imported products in Thailand?
(Russian Federation) Animal feeds and feed additives are regulated and controlled under The Animal Feed Quality Control Act B.E. 2525 (1982) and Revision B.E. 2542 (1999) and now was repealed by The Animal Feed Quality Control Act B.E. 2558 (2015) . These products such as raw material, feed additives and feed must be registered prior to production or imported for sale. DLD supervises and controls materials, the manufacture, distribution and use of animal feed and feed additive for animal. Therefore a person shall not produce or import for sale any animal feed unless he has received a license to produce or a license to import animal feed from DLD. The DLD feed inspectors routinely inspect and samples feed in accordance with the Act of manufactures and farms to ensure feed quality and feeds do not use banned substances identified. According to the Publish Notification of the Ministry of Agriculture and Cooperatives that feed additives are prohibited to be mixed in animal feed include β-agonists, Nitrofurans, Nitroimidazoles, Chloramphenicol, Avoparcin, Carbadox, Olaquindox, Diethylstilbestrol (DES), Melamine and melamine analogue. |
Page 58, paragraph 3.66:
Question: Please explain if Thailand is willing to enhance its risk-based approach by granting further consideration to the compliance history of the importer and the known safety risks of the countries of origin in order to maximize efficiency and resources while maintaining robust sampling and inspection.
Question: Please specify certain control (supervision) measures for quality control of food products and feed products for import and export. Are there any specific SPS-control procedures for enterprises responsible for agricultural goods production?
(US, Russian Federation) The quality control for import of animal feed. According to the Feed Quality Control Act B.E. 2558 (2015), the importers must be allowed by DLD for importing animal feed, especially controlled animal feed must be registered before importing by DLD. All imported animal feed shall have certificate of origin, randomly sampling for quality control, and certificate of health/certificate of phytosanitary, product information, certificate of formula, certificate analysis, and method of analysis and packaging by authorized organization of exporting country. Normally, the exporting establishments have to apply for GMP/HACCP certificate. The DLD feed auditors shall follow up auditing at least once time per year. In case, they miss the GMP/HACCP requirements (minor case), the plants must have corrective action within 45 days, including preventive action. In major case which affect to human and food safety, the plants must have immediately corrective action. However, if they cannot solve or ignore the problem, they will be withdraw the GMP/ HACCP certificate and cannot export until they solve the problem. |
Question: The authorities indicated that while the Codex Alimentarius Commission established MRLs for ractopamine in cattle and pig tissues in 2012 the Ministry of Agriculture and Ministry of Public Health have banned the use of beta-agonist compounds in feed and food, including ractopamine both in domestic production as well as import since 2003.
While Canada recognizes the on-going efforts the Government of Thailand is making to actively resolve this market access issue, Canada would be grateful if Thailand could provide an update on when it intends to adopt the MRLs for ractopamine as adopted by the Codex Alimentarius Commission.
(Canada) The DLD has banned the use of beta agonist compounds in feed and food, including ractopamine both in domestic as well as import since 2003. Risk analysis by Codex considers the safety of consuming 4 kinds of tissue only while consumers in Thailand consume many internal organs. The information from the additional study of China which evaluated by JECFA expert found high-level residues in other internal organs. Thailand maintains a monitoring and surveillance programme for illegal use of beta-agonists, such as collection of samples of animal feed and animal urine to determine the residues at farm, animal quarantine checkpoints and slaughterhouses. |
Paragraph 3.67, Page 58
The report states that emergency notifications were carried out for disease outbreaks.
Question: Could Thailand explain, in detail, its procedure to recognise the concept of disease free areas (regionalisation policy) whenever such an application is submitted by a trading partner which contains the necessary evidence that such areas are likely to remain disease free? Could Thailand explain its standard processing period to finalise such an application request?
(EU) Normally, the trade of livestock and livestock products following disease outbreaks especially poultry and its products, Thailand will resume the exporting country when the "country" is free from diseases in accordance with the OIE Terrestrial Code and Thai laws. The exporting country shall provide the final epidemiology and surveillance reports to authorized official organization of Thailand. |
3.2.6.3 Labelling requirements
Page 59, paragraph 3.68
Question: The Secretariat's Report discusses a number of labelling requirements under the new Thai Food Labelling law, including a "best before" date requirement. Please explain the scientific rationale for requiring the "best before" date labelling on prepackaged food packaging. Also, please explain the rationale for a requirement of a minimum font size of 2 mm. Finally, please explain why a separate food allergy statement is necessary if the allergens present in the food are already declared in the ingredient list.
(US) The Notification of the Ministry of Public Health (No. 367) B.E. 2557 (2014) Re: Labeling of Prepackaged Foods has been enacted on the basis of CODEX standard (CODEX General Standard for the Labeling of Prepackaged of Foods CODEX STAN 1-1985 (Rev. 1-1991)) . Requirement of best before date is therefore to inform consumers as well as to be consistent with the international standards. The requirement of a minimum font size of 2 mm relating to the space of label is readily legible for consumers and practical for manufacturers based on consultation with stakeholders. The Notification of the Ministry of Public Health (No. 367) BE. 2557 (2014) Re: Labeling of Prepackaged Foods requires food allergy statement for food containing allergen or hypersensitivity substances because it is not only necessary for consumers concerning about their health but also to comply with international standards. Even such allergen or hypersensitivity substance has been listed as ingredient, the food allergy statement is still required in order to ensure that consumers have adequate information for their consideration. However, if the allergen or hypersensitivity substances are already declared on both name of food and ingredient list, the food allergen statement is not required to present on such food label. |
3.2.6.3 Labelling requirements
3.68. 3.68. All food products for public consumption must carry a label in Thai providing basic information on the product; for Specifically Controlled Foods (section 3.2.6.2.2), the label must be approved by the FDA before it is used. A new Thai Food Labelling law became effective on 3 December 2014 and provides for a two-year transition period from this date allowing companies to make the necessary changes to their processes and labelling designs. A new MOPH Notification (No. 367 Re: Food Labelling for Pre-Packed Foods), notified to the WTO in August 2013 ( G/SPS/N/THA/219 ), amends existing legislation on food labelling by: changing definitions of pre packed food, expiry date (use by date), best before, repacking, and allergens; highlighting allergens (e.g. peanuts, tree nuts, grains, milk) in the list of ingredients; minimizing font size requirements; requiring the display of food additives' functional class in the ingredient list; requiring the format and conditions for the declaration of best before date; and including warning messages. Some importers' concerns about the new food labelling legislation relate to the minimum font size of 2 mm and the method of displaying food additives on labels together with their functional class that may confuse or frighten consumers who have limited knowledge of food additives."
Question: Why changes to the rules "Food Labelling for Pre-Packed Food" containing provisions on labeling was not notified in the TBT Committee of the WTO?
(Mexico) The Notification of the Ministry of Public Health (No. 367) B.E. 2557 (2014) Re: Labeling of Prepackaged Foods was notified in TBT Committee of the WTO on September 9, 2013 (G/TBT/N/THA/Rev.1) . Please find below the link to the webpage which will enable you to download the notification. https://docs.wto.org/dol2fe/Pages/FE_Search/FE_S_S009-DP.aspx?language=E&CatalogueIdList=128960,128959,128958,128957,128956,128955,128948,128947,128946,128943,128945,128944,128929,128933,128932,128931,128927,128926,128924,128923,128921,128920,128919,128903,128902,128898,128892,127467,126970,119700,119137,82277&CurrentCatalogueIdIndex=30&FullTextSearch= |
Question: Which is the current state of the amendment?
(Mexico) The Notification is current requirements for food labeling of prepackaged foods. Therefore, following notifications regarding food labeling have been repealed: (1) The Notification of the Ministry of Public Health (No.194) B.E. 2543 (2000), Re: Labels, dated 19th September B.E. 2543 (2000), (2) The Notification of the Ministry of Public Health (No.252) B.E. 2545 (2002), Re: Labels (No.2), dated 30th May B.E. 2545 (2002), (3) The Notification of the Ministry of Public Health (No. 343) B.E. 2555 (2012), Re: Labels (No.3), dated 17th April B.E. 2555 (2012) . |
3.2.6.3 Labelling requirements
Page 59, paragraph 3.69
Question: As of 22 April 2015, Thailand implemented a regulation titled Notification of the Alcoholic Beverages Control, Regarding Rules, Procedure and Condition for Labels of Alcoholic Beverages first notified in March 2014 and discussed at the WTO Committee on Technical Barriers to Trade meetings on 5 and 6 November 2014 and on 18 and 19 March 2015.
Will the government undertake consultations with industry to assist them develop labels that will fully comply with the new requirements?
Question: Can Thailand provide more information on the potential impact of this regulation for importers and manufacturers, especially now that the regulation has entered into force and the grace period has passed?
(Australia) Manufacturers and importers may consult the Office of Alcohol Control Committee, Department of Disease Control, Ministry of Public Health. |
Question: Furthermore, Thai officials expressed their intention to revive a requirement for graphic labels and warning statements on all alcoholic beverages sold in Thailand.
We would welcome an update on the status of this plan.
Question: In this paragraph it is indicated that the Thai authorities intend to revive the requirement of graphic labels and warning statements on all alcoholic beverages sold in Thailand. Will these requirements be notified to the TBT Committee of the WTO? Are the images mentioned, are the same as those proposed in 2010? When will these measures come into effect?
Question: What is the status of the proposed graphic health warning regulations and does Thailand intend to notify this to the WTO TBT Committee?
(Australia, Mexico, New Zealand) At present, the considering of selection a suitable picture is ongoing. |
The Secretariat Report notes that the Notification of the Alcoholic Beverages Control Regarding Rules, Procedure and Conditions for Labels of Alcoholic Beverages came fully into effect as of October 19, 2015.
Question: The rules broadly prohibit the use of any wine labels that contain: images of athletes, artists, singers or cartoons. While acknowledging Thailand's objective of limiting the use of images that appeal to youth, the current requirement appears to be overly broad to meet this objective. Can Thailand point to studies demonstrating a correlation between the sale of products labelled in such a way an uptake in youth or irresponsible drinking?
Question: Given the broad restriction on the use of "unfair messages", it appears that certain terms that relate to the quality or the characteristics of a product are now prohibited. This includes commonly-used terms such as "finest", "premium", "original", "rare" and "limited", among others. Such terms are intended to provide information to consumers about the product, and are not intended to encourage misuse of alcohol. Can Thailand provide an explanation of how the prohibition of such widely-used, and generally accepted, terms on the labels of alcoholic beverages supports the policy objective of preventing abuse of alcohol?
(Canada) The use of word relate to quality or characteristics of a product such as "finest", "premium", "original", "rare" and "limited" can mislead consumers into believing that the product is better or special than other brand, according to various studies conducted by various academic institutions. |
Question: Given that Thailand's Office of Alcohol Beverage Control only made the guidance document on the regulation available as of September 30, 2015, will Thailand consider suspending the enforcement of the regulations to allow the industry time to make informed decisions on how they will adapt?
Question: Given that the guideline document for this regulation was issued only 3 weeks prior to the enforcement date, we ask whether Thailand intends to put in place an extend the grace period, in order to provide industry with sufficient time to ensure that their products comply with this regulation?
Question: Given that the enforcement procedure is not clear, can Thailand explain at which point(s) in the supply chain enforcement would occur and identify the agency/body responsible for enforcement?
(Canada, New Zealand) Grace period that was given is a normal and reasonable timeframe. However, additional time of 180 days is also given so that manufacturers would have enough time to comply with the regulation. |
Question: Could Thailand report on the current status of the proposed plain packaging law on tobacco products?
(EU) The draft Tobacco Consumption Control Act is being considered by the Council of State. |
Page 63, paragraph 3.85
Question: Please clarify what authorities (bodies) are responsible for inspections of the exported products? What certain control (supervision) inspections are conducted for the exported products? Whether the inspections vary from one risk group of export shipments to another.
(Russian Federation) The duty of inspecting and control the exported products belong to customs officers at the ports/places or airports of export of the products. Although Thailand's trade policies support trading, they have the measure to control exported products in Customs Tariff Act., Part III "Export Tariff". |
3.3.5 Export financing and insurance
Pages 38-39, paragraph 3.5
Question: The Secretariat's Report notes that Thailand continues to maintain high statutory export taxes on a number of commodities, including sawn wood. Please explain whether Thailand has any plans to reduce these export taxes.
The Secretariat's Report also states that the state-owned Export-Import Bank of Thailand has launched five new credit facility products for small and medium enterprise exporters. Please explain whether exporters of agricultural products are eligible under any of the five new credit facility products. If so, please identify which ones.
Page 69, paragraph 3.97
Question: The Secretariat's Report discusses the existence and operation of the Export-Import Bank of Thailand (ExIm) . Given that this is a state-owned entity:
• Please describe the export financing programs offered by EXIM for which agricultural commodities and products are eligible;
• Please provide the value of agricultural exports supported by each of EXIM's export financing programs during 2013 and 2014;
• Please explain what the agricultural products supported were, their destinations, the maximum and average annual repayment terms, and the average premium rate; and
• Given the above, please explain why Thailand has previously reported in the WTO "Questionnaire on Export Competition" ( G/AG/W/125/Rev.2/Add.2 dated 19 May 2015) that it does not provide export financing programs for agricultural products.
(US) EXIM Bank does not provide specific assistance to the agricultural sector. EXIM Bank provides credit facilities at interest rates which are in line with the market rate, and uses the fund from its money and capital markets. |
Credit Facilities
Page 68 para 3.99
The Export-Import Bank of Thailand (EXIM Bank) offers several types of export-credit insurance covering commercial and political risks (not exchange rate fluctuations) . It is the only financial institution providing short term insurance.
Question: Could Thailand advise the reasons why no other commercial financial institutions are providing short term insurance?
(Hong Kong, China) EXIM Bank is not the only institution that can provide export-credit insurance. Foreign insurance companies, e.g. Coface, Euler, AIG, QBE, offer services in Thailand via Thai insurance companies, e.g. Bangkok Insurance PCL and Muang Thai Life Assurance PCL. Commercial banks in Thailand, however, cannot provide export credit insurance due to the lack of necessary permits. |
Page 69 para 3.101
In 2015, the state-owned EXIM Bank launched five new products for small and medium enterprises (SME) exporters, namely, the SMEs Export Delight; the SMEs Border Trade; the SMEs Relocation & Expansion; the Financing Facility for Special Economic Development Zones; and, the Buyer's PLUS Supplier's Credit.
Question: Are these products applicable to SMEs with foreign investment, including cases in which the majority shares of the SMEs are not owned by local Thai citizens? Would some commercial banks also be providing the facilities?
(Hong Kong, China) EXIM Bank provides credit facilities to domestic business operators according to the Export-Import Bank of Thailand Act, which provides as follows: • "Exporter" means the domestic business operator who export goods or services for selling abroad in order to obtain returns in currency or any other property equivalent in value to currencies into Thailand and shall also mean the provider of services to persons abroad. - "Investor" means: (1) The domestic business operator connected with the exportation of goods or services from Thailand, the business, which earns foreign exchange or contributes to foreign exchange earnings or the business which saves foreign exchange. (2) The business operator abroad having the investor or joint investor who is: (a) a Thai national or (b) a juristic person registered in Thailand having the majority capital held by the person(s) under (a) or a juristic person having the person(s) under (a) holding a majority share of the total capital in such juristic person and having the authority, by the law or regulation or agreement to appoint the majority directors or to cast a majority vote to formulate operational policies of such juristic person. |
3.4 Other Measures Affecting Production and Trade
3.4.1 Taxation
3.4.1.1.1 Excise tax
Page 71, paragraph 3.105
According to the report, discrimination between "white liquor" and "vodka" as well as sales licensing fees has been maintained.
Question: Could Thailand explain what is the rationale for maintaining a higher ad valorem import tariff for wine than for distilled liquor? Along the same line, could Thailand explain what is the rationale for higher specific rate on wine and sparkling wine from grapes than on all the other alcoholic beverages?
(EU) We apply excise tax on alcoholic beverages for 2 reasons which are the reason of health damages and luxury concept according to "Income Distribution". Based on the fact that wine and sparkling wine from grapes are consumed by wealthy people so they meet both reasons and they are supposed to be taxed higher than other. |
Question: The EU welcomes the fact that Thailand has been gradually removing discrimination with regard to alcoholic beverages and would like to know if Thailand has plans to remove the remaining discrimination and if so, the timeframe for doing so.
(EU) We are trying to reduce tax gap among alcoholic beverages at proper time. |
Question: Could Thailand specify if there are plans to modify burdensome tax treatment affecting alcoholic beverages?
(Russian Federation) We will reduce the paper work and use the national single window to provide more convenience for entrepreneurs, importers and tax payers. |
New Zealand remains concerned that the excise tax regime disproportionately affects imported wines and spirits. According to the WHO "2014 Global report on alcohol and health" 73% of alcohol consumed in Thailand is spirits (in particular locally produced white spirits), 27% is beer and less than 1% is wine. Additionally, alcoholic spirits have much higher alcohol content per litre than either beer or wine.
In light of these figures, how do the 2013 amendments to the Thai Liquor Act, in which excise tax on beer and wine increased significantly while white spirits saw only a minor increase, achieve the Act's stated goal of reducing harm from alcohol?
Question: What measures is Thailand taking to address the loophole described in para 3.105 whereby bulk wine imports may be mixed with fruit juice to create fruit wine, attracting a lower excise rate?
(New Zealand) The Excise Department treats all the traders equally by applying the same tax rate to the same products. In detail, spirits tax burden will vary on their type and quantity not vary on the place of origins. Therefore, the same tax rate is applied on the same type of spirits. |
SMEs
Page 77 para 3.124
SMEs have very limited participation in export industries; those involved tend to operate with low skills and technology. By 2013, SMEs comprised 97.2% of businesses (about 2,763,997 SMEs), and 28.4% (2010) of them were involved in export activities.
Question: With the export-credit insurance and new support measures and facilities for SME exporters, is there any recent assessment on SMEs' participation in export industries? We are interested to know if the new measures and facilities are effective in providing an environment conducive to the participation of SMEs in the export industries.
(Hong Kong, China) There is no assessment at this moment. |
Price controls
Page 85 para 3.144
The long-standing price controls policy was to be discontinued by the end of 2013, but this has not been the case so far in order to help people cope with high living cost, depending on necessity and changing external and internal circumstances. In light of increasing production costs it seems that in recent years many producers have shifted to making other goods and downsizing content of existing items to avoid increasing prices.
Question: Could Thailand confirm if the price control, which distorts trade, is still in practice? If yes, is there any plan to do away with the measures in the near future as it appears that such policy could not achieve its original purpose to help its people cope with the high living cost as conglomerates with a dominant position have been the principal cause of rising prices for several consumer goods?
(Hong Kong, China) The notification of Controlled list of goods and services (not price controls) is annually reviewed by the Central Commission on Price of Goods and Services which composes of representatives from all relevant sectors including producers, traders, consumers, academics and government officials. The Commission has an authority to designate the notification of any particular goods and services to be controlled goods and services. Thus, Thailand assures that these mechanisms are transparent and accepted by all stakeholders. At present, sugar is the only one commodity subjected to a price control. This is done in order to maintain fairness to the producers of sugarcane and refinery sugar, middlemen and consumers. Other products under the controlled goods and services list are not subject to any price control, but are subject to price change or price modification monitoring depending upon the necessity and appropriateness of the circumstances of each year for each commodity. |
3.4.6 Intellectual property rights
Page 88, paragraph 3.152
Question: Does the patent protection also apply to the Chinese patent medicine? If so, please introduce related practices and regulations.
(China)The patent protection under Thailand's Patent Act 1979 covers all fields of technology, provided that they are new, involve an inventive step and are capable of industrial application. Moreover, that invention must not be an unpatentable invention under Section 9 of this Act. A foreign patent that has not been registered in Thailand receives no protection under the Patent Act. However, foreign patent holders in foreign countries may enter into business transactions with parties in Thailand and seek equivalent protection through contractual obligations in the form of a licensing agreement or they can apply for patent protection at the Department of Intellectual Property. |
3.4.6.4 Government use and compulsory licensing
Paragraphs 3.167-3.168, page 93-94
Question: Could Thailand explain what would be the grounds and procedure for granting a compulsory licence, clarifying also whether Thailand is considering new compulsory licences?
(EU) As a WTO Member, Thailand, affirms the rights to grant a compulsory licence and freedom to determine the grounds upon which the compulsory licence is granted as specified in the Doha Declaration on the TRIPS Agreement and Public Health. Regarding compulsory licensing, the Patent Act B.E. 2522 (1979) (as amended) is in line with the TRIPS Agreement. The Act specifies clearly in Articles 46-52 regarding the grounds and procedures for issuing a compulsory licence. Please consult the Patent Act B.E.2522 (1979) for more information. Currently, there is no indication from the Ministry of Public Health about the need to issue a new compulsory licensing. |
Page 94, paragraph 3.172
Question: Why has the DIP of Ministry of Commerce cancelled the DIP Notification on traditional knowledge?
(China) The objective of the Notification on Traditional Knowledge is to collect information in on Thai local knowledge for reference. The recordation does not convey any legal rights. Moreover, as mention in the Secretariat's Report, Thailand has specific law related to traditional knowledge, namely, Thai Medicinal Intelligence Act, B.E. 2542 (1999) , administered by the Ministry of Public Health and National Culture Act B.E. 2553 (2009), administered by Ministry of Culture. Therefore, DIP cancelled the Notification on Traditional Knowledge to avoid potential overlap or conflict between laws implemented by other relevant agencies. |
Patents
Question: Does Thailand have any forecasts or set any internal deadline with regards to the further reduction of the average time required to obtain a patent?
(Switzerland) The Department of Intellectual Property of Thailand (DIP) has consistently been trying to improve the efficiency of IP registration service, in particular patent registration, in order to eliminate a backlog in pending patent applications. The DIP expects to gain more patent examiners within a timely manner, and aims to reduce the average time required to obtain a patent within five years. |
Test Data
Question: How does Thailand implement TRIPS Art 39.3? In particular, what measures does the Thai legislation provide in order to protect undisclosed test data of the first applicant for market approval against unfair commercial use by the second or later applicants?
(Switzerland) Section 15 of the Trade Secrets Act B.E 2545 (2002) provides protection of undisclosed test data by determining that state agencies concerned have the duties to maintain the undisclosed test (trade secrets) from being disclosed, deprived of or used in unfair trading activities. |
Government use and compulsory licensing
Question: Switzerland welcomes Thailand's willingness to give preference to negotiate voluntary licences over the grant of compulsory licences, since the manufacturing and adherence to safety standards of voluntary licensed pharmaceuticals prove in practice often to be more effective and faster in their implementation than the grant of a compulsory licence. For purposes of our better understanding, could Thailand still explain the procedural and substantive requirements applicable under Thai legislation during the course of considering compulsory licensing and inform about what authority is responsible to examine a request for and decide on the grant of a compulsory licence?
(Switzerland) The criteria and requirements regarding the grant of compulsory licenses are determined by Section 51 and Section 52 of the Patent Act B.E. 2522 (1979) . |
Patent Term Adjustment
Question: Does the Thai legislation provide for the possibility to compensate for patent protection term lost due to unreasonable delay arising from patent examination? If so, can you please explain under what conditions such compensation is available/applicable?
(Switzerland) The Thai legislation does not provide any possibility for patent term adjustment. |
New Use Inventions
Question: Could the Thai authorities explain whether and to what extent new uses of existing products or processes are patentable in Thailand and what conditions will be applicable?
(Switzerland) Section 5 of the Patent Act B.E. 2522 (1979) determines that a patent may be granted for an invention in respect of which the following conditions are satisfied: (1) the invention is new; (2) it involves an inventive step; and (3) it is capable of industrial application. While Section 9 determines the inventions that are not protected under the Patent Act: (1) naturally occurring microorganisms and their components, animals, plants or extracts from animals or plants; (2) scientific or mathematical rules or theories; (3) computer programs; (4) methods of diagnosis, treatment or cure of human and animal diseases; (5) inventions contrary to public order, morality, health or welfare. |
4 TRADE POLICIES BY SECTOR
4.1 Introduction
Page 97, Paragraph 4.1
Question: What liberalization is Thailand undertaking in the air transport sector to encourage foreign investment and increased competitiveness in airport operation services and aircraft repair and maintenance services to achieve this?
(New Zealand) A study is being undertaken regarding the feasibility of an aviation industrial estate. |
4.2 Agriculture and Food Processing
4.2.2 Trade
Page 99, Para 4.8
The report mentions that "concerns have been expressed that domestic production of spirits is supported by a discriminatory excise tax structure".
Question: Could Thailand kindly explain the discriminatory excise tax structure and steps taken to fix the issue?
(EU) We do treat our taxpayers the same tax administration by using different tax rates on types of alcoholic beverages. However, we will gradually reduce tax gap among different kind of alcoholic beverages at proper time. |
Paragraph 4.11, page 99
Reference is done to Thailand's key exports are showed in Table 4.3. According to Data, the Thai sugar industry is one of the largest worldwide. In EU's view, the export orientation of the Thai sugar industry is rather remarkable given the fact that Thailand maintains a quota system having three distinct quotas: A, B and C quota, with minimum prices, fixed internal sugar price, direct support to growers through the state-run "Cane and Sugar Fund" plus direct payment programs. The EU quota and minimum prices were the reason that the WTO regarded EU exports of out-of-quota sugar as subsidised and hence under the Agreement on Agriculture (AoA), total EU exports of subsidised sugar are restricted to an annual limit of 1.374 million tons (MT) .
Question: Could Thailand explain how can Thailand continue to export sugar unabated, while having a quota system with minimum prices for sugar(cane)?
(EU) The ceiling prices for domestic sugar do not affect the quantities of sugar exported. Quota Z is the quota used mainly for exportation, and is the left over from Quota X and Quota Y (Quota Z = Quantity produced – (Quota X+ Quota Y)) . The domestic price does not have any bearing on the quantity of sugar produced for domestic consumption as the quantity has already been fixed by Quota X. Thus, the quantity exported, mainly from Quota Z, has no relation to domestic price set by the Cane and Sugar Board. There is no stringent requirement to export Quota Z sugar. |
In addition, it appears that Thai government is encouraging rice producers to divert rice land to sugar cane, in order to address the rice surplus problem. In this way, it is planning a further increase of sugar production, by 50% in next five years.
Question: How is the Thai sugar industry able to achieve such a production gain with current world sugar prices at low level?
(EU) The purpose is to improve the efficiency of resource management and utilization in accordance with market mechanisms. The project will merely encourage farmers to grow appropriate crops efficiently in appropriate areas. Decisions of the farmers will be voluntary. |
Paragraph 4.14
Question: Can Thailand provide more detailed information on the Ministry of Agriculture and Cooperatives' Production Development Strategy?
(New Zealand) Thailand's agricultural policy for production development strategy is focusing on reducing production costs in each agricultural product by researching and developing, technology transfer and integration of modern technology with local wisdom. MOAC also develop quality of agricultural product standard, agricultural machinery and environmentally friendly technologies. The consultation and recommendation on optimal chemical fertilizers and agricultural chemicals usage are provided in each product including the production of compost fertilizer, liquid biofertilizer and green manure. |
Paragraph 4.19
Question: New Zealand urges Thailand to prioritise the reduction of tariffs on agricultural products to increase the productivity of this sector. At what frequency are MFN and preferential tariff rates for agricultural products reviewed?
Page 91, Para 4.20
4.20. …However, consistently low fill rates are observed for garlic, coconut, copra, maize, rice palm oil, coconut oil, raw silk and dried longans (Table 4.5) . Over the review period, various Members have raised questions in the WTO Committee on Agriculture about the reasons for low fill rates for certain products …
Question: The Secretariat Report has not mentioned the low proportion of imported tobacco leaf products in Thailand. The import quotas of raw tobacco products and tobacco leaf in Thailand are 6,435 tons per year. Thailand has a total tobacco production capacity of about 50,000 tons per year. The Thailand Tobacco Monopoly has a cigarette production capacity of 33 billion pieces per year, accounting for 33% of the total market share in Thailand. The market share of hand-rolled cigarettes is about 45%, that of legally imported cigarettes is about 12%, and that of smuggled cigarettes is about 10%. Therefore, the total demand for tobaccos in Thailand is estimated at around 60,000 tons per year and the amount in short needs to be imported. Will the import quotas of tobacco leaf products in Thailand be properly increased?
(New Zealand, China) Regarding the products that are subject to Thai tariff-rate quotas (TRQs), Thailand has been committing to the WTO agreement and notifying the tariff quotas regularly. Nonetheless, each TRQ product has been managed differently based on its nature of industry. |
4.2.3 Agricultural policies
4.2.3.1 Legal, institutional, and policy framework
Paragraph 4.21, Page 103
Question: We would welcome information from Thailand on measures under consideration to simplify tariff quota administration and to help ensure that the negative trade impacts from quota administration are minimised.
(New Zealand) Subject to the TRQ products, different administration methods are determined by concerning committees in order to ensure that both domestic and international trade are managed properly. Concerning the importation of corn, Thailand has manipulated an appropriate quota of maize for animal feeding on basis of domestic consumption without any period restriction. |
The report indicates that "allocation of tariff quotas to importers tends to be complex…"
Question: Could Thailand explain whether there are "performance requirements" imposed as conditions for applying for an import licenses (i.e. historical import performance, guarantee and etc.)? What is the average timeframe for processing applications for an import license? Does Thailand maintain a publicly accessible and updated database on the utilisation/ fill rate of the TRQ? If yes, how can the interested importers get access to the information?
(EU) The Department of Foreign Trade, Ministry of Commerce, clearly publishes all the document requirements and procedures in each import licensing notification. Applications are granted upon complete documentation in the procedure. |
4.2.3.4 Recent developments in key sectors
4.2.3.4.1 Rice
Paragraph 4.26, page 105
According to the report, under the terminated paddy-pledging scheme, the Government spent THB 425 billion purchasing 17.8 million metric tonnes of grain rice that it was unable to sell.
Question: Could Thailand indicate the level of stocks remaining from the Paddy Pledging Scheme as per 30 September 2015? How many metric tonnes of rice have been sold/auctioned? Of this, how much rice has been exported and what was the average price?
Question: The Secretariat's Report states that various price support mechanisms for rice have resulted in the Government of Thailand purchasing an estimated 17.8 million metric tonnes of grain rice that it was unable to sell. Please provide the most recent overall rice stock figure. Also, please explain how much rice was released or sold into each of the five channels described at paragraph 4.28 and the terms of these releases or sales.
Paragraphs 4.28 and 4.29, page 105
According to the report, the paddy-pledging scheme was terminated in February 2014. The Rice Policy and Management Committee started the government rice auction in August 2014 and by end 2014, the Committee had approved four rice tenders amounting to 622,131 metric tonnes. In the first part of 2015, the Committee had approved three tenders amounting to 2,112,372 metric tonnes.
Question: Could Thailand detail sales for respectively the four tenders approved in 2014 as well as three tenderers approved in 2015 according to the five channels mentioned in the report: a) Government to government, b) Public auctions; c) Agencies or entities; d) Futures market; e) Donations to persons affected by natural disasters?
Question: Could Thailand indicate the average sales for the quantities sold under a) to d) in respectively 2014 and 2015?
(EU, US) Currently, Thailand is unable to provide the figures as the relevant authority is examining and finalizing the account. The information is also subject to the ongoing investigations and upcoming court proceedings relating to the past pledging programme. |
4.2.3.4.2 Sugar
Page 106, Paragraph 4.30
Question: Could Thailand please explain the policy rationale for establishing quotas for sugar production? What is the role of the Thai Cane and Sugar Corporation Ltd in the granting of production quotas and exports?
(Australia) The Thai Cane and Sugar Corporation Ltd is privately owned by sugarcane farmers and sugar producers, and has the overall responsibility for pricing and selling raw sugar under Quota Y for the purpose of calculating the revenue sharing between the cane farmers and the sugar producers. The company does not receive any special support or privileges from the government. |
4.3 Fisheries
Paragraph 4.37, page 108
Shrimp farming has a non-negligible impact on biodiversity, which is particularly sensitive in mangrove ecosystems: it can put aquatic and terrestrial species at risk, and it is closely linked to mangrove deforestation. Mangrove deforestation increases, in turn, the exposure of coastal areas to floods, salt intrusion, erosion and changing draining patterns.
Question: The EU would like to know to what extent the new Fisheries Act is in line with the objectives of the Convention on Biological Diversity, in particular Aichi Targets 6 and 7 (https://www.cbd.int/sp/targets/) .
(EU) On Target 6 and 7: Three approaches under the new Fisheries law, are in line with the objective of the CBD for conservation of biodiversity, the sustainable use of its components and equitable sharing of the benefits arising out of the utilization of genetic resources, including by appropriate access to genetic resources. Firstly, several objectives are outlined for management and harvesting fisheries resources including for management aquaculture practices and products to achieve long terms economic, social and environmental sustainability. Secondly, Fisheries management measure provisions are mainly focused in tackling IUU fishing practices, preventing and eliminating overfishing, overcapacity and destructive fishing practices that have the effects on biodiversity by using the best available scientific evidence, in line with ecosystem and precautionary approach, to ensure that fisheries resources are maintained or restored to a level that can produce the maximum sustainable yield. Lastly, access and benefit - sharing on genetic resources on fisheries are implemented under fisheries law and a specific regulation on Access and Benefit Sharing (ABS) or in case by case under the access agreement/the material transfer agreement. |
Table 4.9 Government financial transfers to the fisheries sector, 2009-2014
Page 109, Table 4.9
Question: Can Thailand provide more information on the types of management, research and enforcement services that are provided to the aquaculture industry?
(Australia) All types of management, research and enforcement services are provided for the purpose of aquaculture as follows : (1) To maintain and balance the ecological habitats and to increase the abundance of aquatic species at the sustainable level. (2) Encouraging education, research, study and use aquaculture technologies to develop the quality, storage , transportation , production methods, processing and inspection of the fish and fisheries products for the sanitary and food safety benefits and reduction of waste |
4.4 Forestry
Paragraph 4.43, page 110 (see also paragraph 4.7, page 98)
Question: The EU would like to know to what extent increasing oil palm cultivation can be compatible with the goal of the National Forestry Policy of the Ministry of Natural Resources and Environment to achieve a total forest area of 40% (20.4 million hectares) of the country, up from the current 16.3 million hectares (31%) .
(EU) The main mission of the Royal Forest Department (RFD) is to increase the forest covering 40% of the country area, and the RFD has a strong plan of action to achieve that ultimate goal in the near future, including a forest management plan to deal with the land once palm concessions expire. |
(5) ENERGY
Page 113 (Para 4.53)
Question(s): To support the production of renewable energy, rules and regulations of the related Thailand government authorities, such as the Ministry of Energy (MOE), Electricity Generating Authority of Thailand (EGAT), Board of Investment (BOI), offer a range of fiscal and non-tax incentives for promotions. Among these incentive measures, such as Fit for RE Programme, Solar Rooftop Programme, Solar Water Heater Subsidy Programme and Energy Conservation Promotion Fund (ENCON Fund), do foreign companies receive less favourable treatment? Are there special regulations, such as local content requirements, local partnership requirements and export requirements?
(Chinese Taipei) In terms of investment promotion, foreign companies are treated equally to local companies. As for the incentives offered by the BOI for activities in energy sector, there is no requirement for foreign equity, local content requirements, local partnership or export performance in place. With regard to the FiT Programme, foreign companies may make an application. However, such companies are required, under Aticle 4(2)(e) of the Regulation of the Energy Regulatory Commission on Application for License and Permission for Energy Industry Operation B.E. 2551, to have an authorized representative, a representative of juristic person or manager of juristic person, who has Thai nationality. Nevertheless, foreign and domestic companies are treated equally when it comes to the consideration for the granting of approval. More info at http://www.erc.or.th/ERCWeb2/Upload/Document/CommentariesOfLawRelatedToEnergyIndustry.pdf. |
(i) Hydrocarbons
Page 114 (Para 4.57)
Question(s): According to the secretariat report, the Thai Government have implemented subsidy reforms actively in recent years. As a member of APEC, does the government consider to take part in the APEC Fossil Fuel Subsidy Reform (FFSR) peer review?
(Chinese Taipei) Relevant authorities are to be consulted with regard to this. |
4.6.1.1 Automotive sector
Para 4.72, page 117
The report mentions the high import duties (80%) applied to completely built units and the quantitative import restrictions in the form of non-automatic licensing on certain used diesel engines as well as import prohibition of used passenger cars.
Question: Is Thailand envisaging a review of its tariff levels as well as other restrictive measures applied to the automotive sector?
(EU) The Ministry of Finance is in the process of reformation the import tariff structure. |
Paragraph 4.84
Could Thailand please advise whether amendments to existing restrictions on foreign participation in services industries, in the Foreign Business Act 1999, to bring the AEC into effect, will be applied to all foreign services investors, or on a preferential basis to ASEAN member states? Could Thailand please detail all existing measures relating to foreign investment in services industries which are currently implemented on a preferential basis for ASEAN member States?
(New Zealand) Thailand had finished its internal consultation process and ready to submit the 10th package of Commitments under the ASEAN Framework Agreement on Services (AFAS) . Thailand's schedule of specific commitments covered approximately 100 services sub-sectors with equity participation capped at 70% and has increased number of commitments from 9th Package under two sectors, namely, communication services and transport services. More information can be viewed at: http://www.asean.org/. |
4.7.2.2. Insurance
4.7.2.1.2 Legal and institutional framework
Page 126, Paragraph 4.108
The Life and Non-Life Insurance Acts were amended in February 2015 in relation to shareholder participation and the Life and Non-Life Funds.
Question: Could Thailand provide more detailed information on these shareholding changes made in the beginning of 2015?
(EU) According to the Life and the Non-life Insurance Act (No 3), BE 2558 (2015), The amount of shares of the Company that are held by persons of Thai nationality shall not be less than seventy-five per cent of the total amount of distributed voting shares. The number of directors of the Company who are persons of Thai nationality shall be at least three-fourths of the total number of directors. If there is reasonable ground, the Committee may allow persons of non-Thai nationalities to hold up to forty-nine per cent of the total amount of distributed voting shares, or allow the number of directors who are persons of non-Thai nationalities to be higher than one-fourth but lower than one-half of the total number of directors. In case the condition or operation of a Company is in a state that may cause damage to the insureds or to the public, or to promote the strength of a Company or for the soundness of the non-life insurance business, the Minister, with the advice of the Committee, has the power to relax the requirements, allowing a Company to have the amount of shares or the number of directors other than as prescribed in paragraph 2. The application for and grant of the permission under paragraph 2 or the relaxation under paragraph 3 shall be subject to rules, procedures and conditions or timeframes as prescribed by the Committee or the Minister. Once permission is granted by the Committee or a relaxation is made by the Minister, the Office of Insurance Commission shall publish such permission or relaxation, together with the rationale and conditions or timeframes, in the Government Gazette. |
Page 121
Question: This chapter only introduced the market structure and legal framework of the banking sector and the insurance sector. Please detail on the market structure and legal framework of the securities and futures sectors.
(China) Please refer to Thailand's Government Report, page 18-19 and for further information, please visit the Stock Exchange of Thailand (SET) website http://www.set.or.th/set/mainpage.do. |
4.7.2.2.2 Legal framework
Page 126, paragraph 4.109
Question: The report notes that there is a 25 per cent cap on foreign ownership of insurance companies but there are exceptions that the Office of Insurance Commission and the Minister may approve.
What efforts has the government taken to liberalise the insurance market and what reforms does it plan to undertake to improve the competitiveness of the insurance sector?
(Australia) The Office of Insurance Commission (OIC) has issued the Life and the Non-life Insurance Act (No 3), BE 2558 (2015), which made shareholding changes as follow. According to the Life and the Non-life Insurance Act (No 3), BE 2558 (2015), The amount of shares of the Company that are held by persons of Thai nationality shall not be less than seventy-five per cent of the total amount of distributed voting shares. The number of directors of the Company who are persons of Thai nationality shall be at least three-fourths of the total number of directors. If there is reasonable ground, the Committee may allow persons of non-Thai nationalities to hold up to forty-nine per cent of the total amount of distributed voting shares, or allow the number of directors who are persons of non-Thai nationalities to be higher than one-fourth but lower than one-half of the total number of directors. In case the condition or operation of a Company is in a state that may cause damage to the insureds or to the public, or to promote the strength of a Company or for the soundness of the non-life insurance business, the Minister, with the advice of the Committee, has the power to relax the requirements, allowing a Company to have the amount of shares or the number of directors other than as prescribed in paragraph 2. The application for and grant of the permission under paragraph 2 or the relaxation under paragraph 3 shall be subject to rules, procedures and conditions or timeframes as prescribed by the Committee or the Minister. Once permission is granted by the Committee or a relaxation is made by the Minister, the Office of Insurance Commission shall publish such permission or relaxation, together with the rationale and conditions or timeframes, in the Government Gazette. The OIC is in the process of developing the Insurance Development Plan III, which will consists of 4 strategies that will contribute to improving competitiveness of the insurance sector: (1) Increasing the capacity of the insurance industry by strengthening the capacity of insurers, increasing the standard of performance of insurers, and increasing the level of market conduct of the insurance system. (2) Increasing the knowledge and access of insurance by promoting insurance knowledge as well as developing and increasing the distribution channels to reach people throughout the country. (3) Creating an insurance environment that facilitates competition by detariffing insurance premium rates, promoting the development of insurance products to be in accordance with the needs and risks, and promoting market connectivity in the ASEAN region. (4) Strengthening insurance infrastructures by developing and increasing the quality of insurance personnel to professionalism, strengthening the research capacity and information technology, and to push forward for insurance to become a risk management tool. |
4.7.3 Telecommunications
Page 128, paragraph 4.120
Question: Eight bills related to the digital economy are being prepared, including the Bill on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunication Services.
What changes will be made to the powers and duties assigned to the National Broadcasting and Telecommunications Commission and what is the timeframe for the passing of the legislation?
(Australia) They are still under review process and there is no time frame. |
Question: How Thailand's telecommunications related regime is changing to meet the needs of the digital economy?
(Australia) Thailand's mobile communication sector is highly competitive. Spectrum freed from expired concession (for example, 1800 MHz band) has been recently auctioned for 4G/ LTE mobile services successfully. Also, broadband services (wired and wireless) will be deployed to cover all villages in Thailand in the next 2-3 years. At the moment, the government and the NBTC are working on details to improve open access and infrastructure sharing for all telecom service providers to help reduce investment costs and speed up service deployment. These infrastructure developments are to respond to the growing demand of the digital economy. |
Question: Are there any amendments to Thailand's intellectual property laws to protect and facilitate the digital economy?
(Australia) Yes, e.g. the Copyright Act has been amended as described in paragraph 3.55 of the Government Report. |
State-owned Enterprises (SOE's)
Referring to 1.4.3 in the Report by the secretariat, State enterprise reforms are considered vital to upgrading Thailand's growth potential.
Question: Will new collaborative models between private operators and SOE's in the area of sharing infrastructure be enabled?
(Norway) With regards to questions related to state-owned enterprises, the transition from concessionary agreements to a licensing regime has been effective since 2001. The last concession will expire in 2018. And yes, even though private operators are currently already sharing infrastructure owned by the SOE's (as enabled by the NBTC's regulation), at the moment the government and the NBTC are working on details to improve open access and infrastructure sharing. |
Spectrum auction
Question: When will the remaining concessionary spectrum (1800MHz and 850Mhz) be made available for auction?
(Norway) The current concessions for the spectrum bands 1800MHz and 850Mhz are due to expire in 2018. It is expected that all preparatory processes will be made in preparatory processes will be made in parallel in order to make the spectrum available for auction in the same year. |
Question: Will the 850MHz spectrum continue to be available for telecommunication services?
(Norway) The office of the NBTC is in the process of assessing the spectrum valuation with respect to all alternative spectrum plans. The assessment is conducted to ensure the best spectrum plan that allows maximal public interest in terms of economic growth, employment rate, and improved quality of life. While awaiting the research outcome, we can reveal high possibility that the 850MHz spectrum will be made available for telecommunication services but the frequency blocks might be slightly shifted due to new frequency arrangement. |
Digital economy bills4
Question: Will the eight bills to promote Thailand's Digital Economy be available for public consultation/hearing?
(Norway) Yes. |
Question: Will the Bill on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunication Services allow for "public interest" to be taken into account when allocating spectrum? If so, which "public interest" will be considered in this regard?
(Norway) The NBTC will assign frequency and regulate telecommunications business conforming to the constitution which stated that in carrying out the act, the independent regulatory agency shall optimize the benefit of the people at national and local levels in education, culture, state security and other public interests with free and fair competition. Under the Section 27(8) of the Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 (2010) states that the powers and duties of NBTC to set the criteria and procedures in telecommunications services which shall be fair to telecommunications service providers with due regard to public interest. In addition, the Section 29 of this Act prescribed that the NBTC shall have due regard to the public interest and burden of the consumers, costs of providing service, optimization and efficient allocation of resources. |
Question: Under which circumstance can frequencies be allocated through other mechanisms than auction?
(Norway) According to the law, all spectrum bands for telecommunication business must be allocated though action processes. This principle is applied to all spectrum bands that are used to provide direct telecommunication services to consumers through the telecommunication market. However, spectrum frequencies for radio communication services including fixed links, land mobile, etc. are allocated on a first-come-first-serve basis. |
Question: How will the independence of NBTC be ensured in the new framework?
(Norway) The independence of the NBTC is ensured by the Constitution which stated that there shall be an independent regulatory agency having the duty to allocate the frequencies and exercise supervision over the operation of radio and television broadcasting and telecommunications business. |
Foreign dominance notification5
Question: How does the Foreign Dominance Notification comply with Thailand's GATS commitments on market access and non-discrimination against foreigners?
(Norway) The notification is based on the authority given by the Telecommunications Business Act B.E. 2544 (2001) which relates to the Foreign Business Act B.E. 2542 (1999) . The notification regulate only Thai companies which are type2 and type3 licensees not foreign companies. |
Page 135 (Paragraph 4.148)
Question: We note that the Port Authority of Thailand (PAT) is working to develop the Single Rail Transfer Operator and the Coastal Terminals at Laem Chabang Port and Bangkok Port, to strengthen the role of primary seaports in Thailand, and as part of the government's plan to shift the modes of transport from road to rail and waterway. We would like to seek clarification on the additional cargo volume that Thailand expects to be facilitated via rail and waterway as a result of these developments. In addition, could Thailand elaborate more on its other port development plans, such as the development of the Pak Bara Port – as mentioned in paragraph 3.48 of the report by Thailand – and its proposed land bridge link to Songkhla Port? Will these projects be integrated with the PAT's overall development plans for the ports under its purview?
(Singapore) The Development Project of Single Rail Transfer Operator aims to develop infrastructure and necessary facilities for serving the discharging/loading containers transported by rail within the port area. The project would largely help facilitate rail transfer in the future in response to the completion of double track construction project of State Railway Authority of Thailand (SRT) . It would increase the handling capacity of rail transport in LCP from the existing of 500,000 TEUs/year to 2 million TEUs/year. For Pak Bara Project, we would like to inform that it's out of PAT's supervision. However, The PAT always concern about Pak Bara Project to integrate with the PAT's Development Projects. |
3.Maritime Transport
Page 134 (Paragraph 4.143)
Question: Reference is made to WT/TPR/S/326 Transportation, Maritime Transport, Shipping and the information in para. 4.143. Could Thailand please indicate whether the laws under review affect foreign maritime transport services providers' ability to provide services in Thailand?
Question: We note that Thailand has in place a cargo reservation policy which requires goods imported into Thailand by government agencies or public enterprises to be transported by Thai-flagged vessels on designated shipping routes, where such vessels are available. We would like to seek clarification on the circumstances under which foreign vessels may be permitted to provide such services, if domestic vessels are not available and how this situation is determined. Could Thailand also provide more information on whether there are any administrative procedures involved and whether there are plans to review its cargo reservation policy as part of the review of its key maritime laws?
Question: We note that foreign vessels may be permitted to provide specific shipping services in Thailand for one year, if domestic vessels are not available. We further note that this would be on a case-by-case basis and subject to the authorisation of the Thailand Ministry of Transport. Could Thailand elaborate on the circumstances under which foreign vessels may be permitted to provide such services, and whether there are any administrative procedures involved? We would also like to seek clarification on whether there are other services, besides the laying of pipes, which foreign vessels may be permitted to provide.
(Norway, Singapore) The laws under review, i.e. the Thai Vessels Act, B.E.2481; the Navigation in Thai Waters Act, B.E.2456; and the Merchant Marine Promotion Act, B.E. 2521, do not affect the ability of foreign maritime transport services to provide services in Thailand for the following reasons: Thai Vessels Act, B.E.2481: International maritime transport to and from ports in Thailand is open in nature to service suppliers of any nationalities with no particular restrictions on ship registration, flag of vessels, shareholders, foreign equity, board of directors, paid-up capital or whatsoever. Foreign service suppliers can engage vessels of their own non-Thai flag vessels in providing such services. However, to provide services by Thai-flag vessels, Article 7 bis of the Thai Vessels Act, B.E. 2481 (1938), as amended, stipulates that the owner of such vessels must be juristic person with Thai nationality and major Thai equity of 51%. Nevertheless, there is no discriminatory treatment between Thai-flag and foreign-flag vessels in access to supporting services at public ports owned by the government in Thailand. In spite of the fact that domestic maritime transport between two or more ports in Thailand is reserved for Thai-flag vessels only, Article 47 of the Thai Vessels Act provides exemptions of three categories, i.e., (1) international agreements between Thailand and other countries which allows vessels flying the flag of the other contracting party to provide domestic maritime transport service, (2) small vessels (self-propelled vessels of 10 GRT or more or sea barge of 20 GRT or more or river barge of 50 GRT or more) owned by foreign natural persons, and (3) lack of services of Thai vessels in certain part of Thai territorial waters. For the third category, vessels flying foreign flag will be allowed to provide maritime transport services in Thai territorial waters upon approval granted and conditions imposed by the Minister of Transport for a period not exceeding one year. Navigation in Thai Waters Act, B.E.2456: the Navigation in Thai Waters Act contains provisions concerning monitoring and control of navigation safety and marine environmental aspects in Thai territorial waters which will equally apply to both Thai and foreign vessels in the Thai waters. The Merchant Marine Promotion Act, B.E. 2522: the Merchant Marine Promotion Act contains provisions on, among others, cargo reservation measure for the imported government cargo on the routes where the services of Thai-flag vessels are available. However, waivers can be made to such measure, if it can be proved that the services of Thai-flag vessels are not available when such cargo are ready for loading on board and transporting to Thailand at the port of origin. In such case, the importer is required to file the application for using non-Thai flag vessels at the Marine Department. |
Question: Reference is made to WT/TPR/S/326 Transportation, Maritime Transport, Shipping and the information in para. 4.143. Could Thailand provide further information regarding the procedures for granting waivers to the cargo reservation policy?
(Norway, Singapore) According to Article 17 of the Merchant Marine Promotion Act, B.E.2521, imported government cargo on nine designated routes, where the service of Thai flag vessels are available, are required to be transported by such Thai vessels. The designated routes include those originating from the following countries to Thailand: Japan, Republic of Korea, Taiwan, Hong Kong China, Singapore, European countries with maritime border, the United States of America, People's Republic of China and Malaysia. The importer is required to notify the Marine Department on the engagement of a particular Thai vessel for transporting the imported government cargo to Thailand in advance before loading at the port of origin by submitting the application form together with documents required (a copy of sales contract, contract with the government authority or public enterprise, purchase order and letter of credit) to the Marine Department. When such Thai vessel arrives at a port of destination in Thailand, the importer or importer's contractor are required to notify the arrival of the imported government cargo within seven days since the day of arrival. Obtaining Waivers from such requirement can be made if there is no Thai vessel available when the imported government cargo are ready to be loaded at the port of origin. In such case, the importer is required to submit the application form together with supporting documents (a copy of purchase order, letter of credit, sale contract, a document indicating the date of arrival of such cargo at the port of origin which are ready for loading and a written evidence indicating the reason for the inability to engage Thai vessel) to the Marine Department 10 days in advance before the cargo is loaded on board a foreign vessel. The Marine Department will consider whether to grant approval or not and notify the importer via any immediate communication channel within five days since the date of receiving the application form. When such foreign vessel arrives at a port of destination in Thailand, the importer or importer's contractor are required to notify the arrival of the imported government cargo within seven days since the day of arrival. If the imported government cargo is loaded on and transported by a foreign vessel before obtaining permission for waiver from the Marine Department, the importer or importer's contractor is required to pay the fine for the amount that is determined by the Department. |
Question: Reference is made to WT/TPR/S/326 , chapter 2.4 Trade Agreements and Arrangements. We would be pleased to receive information on whether maritime transport services is included in Thailand's regional and bilateral trade agreements?
(Norway) Maritime transport services part is included in some regional and bilateral trade agreements, to name e few, ASEAN Framework Agreement on Services (AFAS), Thailand – EU FTA, ASEAN – Japan FTA, ASEAN – China FTA. |
REPORT BY THAILAND – WT/TPR/G/326
3 ECONOMIC AND TRADE POLICY DEVELOPMENT
3.1 Agriculture
Page 5, Paragraph 3.5
Question: Could Thailand please elaborate on the income transfer programmes for rice and rubber farmers? What were the eligibility and payment conditions for the income transfers? Were such transfers linked to agricultural production? How do these programs work and when are they due to expire given that they are described as 'short-term measures'?
(Australia) Thailand suffered from a severe drought resulting in yield loss. Farmers' income is not enough for living. This project was a temporary, a one time, measure to help small farmers who grow rice during the 2014/15 rice production year, in the period from November 2014 to January 2015. So, Farmers would have some income for their cost of living. The payment did not exceed 15,000 baht (430 USD) per household and didn't link to production. The farmers whom are small and low-income, registered and certified from the Department of Agricultural Extension would receive money transfers through saving accounts of the Bank for Agriculture and Agricultural Co-operatives. |
Page 5 ,Para 3.7
"…approval of the guideline to simplify and eliminate duplication of work among several agencies in determining requirements for sewage, and issuing permits to release sewage to the environment, environmental regulations, and environment assessment reports...."
Question: Please introduce the details of issuing permits to sewage releasing enterprises.
(China) The details regarding the simplification of requirements for sewage and issuing permits to release sewage are still being considered by relevant agencies, such as the Ministry of Industry and the Ministry of Natural Resources and Environment. |
3.1 Overall Economic Policy under the Current Reform
Page 5, Paragraph 3.8
Question: Thailand notes that it is committed to improving the overall investment environment and that Foreign Direct Investment is recognised as a means to generate employment, economic growth and increase productivity and efficiency of Thailand's industry.
We also note that Thailand has restrictions in place for foreign ownership of land and prohibitions and restrictions on foreign operation of businesses in a range of agricultural industries ( WT/TPR/S/326 paragraph 4.18) .
What mechanisms or incentives does the Board of Investment (BOI) use to promote investment in agro-businesses?
(Australia) The BOI promotes various activities in the sector of agriculture and agricultural products with both tax and non-tax incentives granted. Most of the promoted activities have no foreign equity restriction. |
Question: Does BOI have specific target sectors for investment within the agro-business industry?
(Australia) Agro activities under the BOI list of eligible activities for investment promotion are classified as target sectors (http://www.boi.go.th/upload/content/newpolicy-announcement%20as%20of%2020_3_58_23499.pdf) . |
Question: Does Thailand plan to expand opportunities for foreign investment in agricultural land and industries as a means to generate employment, economic growth and increase productivity and efficiency of Thailand's industry?
(Australia) Foreign investors are allowed to invest in agro industries listed on the BOI list of eligible activities for investment promotion (http://www.boi.go.th/upload/content/newpolicy-announcement%20as%20of%2020_3_58_23499.pdf) . |
Paragraph 3.9
Question: Mexico congratulates Thailand for adopting Licensing Facilitation Act in January. Although it is in the early stages of implementation, we would like to know the benefits associated with the operation of the new licensing procedure with respect to the way it operated before the adoption of that Act.
(Mexico) Examples of the benefits associated with operation of the new licensing procedure include, but not limited to, the availability of manuals for approval with clear requirements, e.g. processing time, related fee, etc. Necessary documents are also made available and can be downloaded from permitting authorities' websites. Additionally, with state agencies being required to have a one-stop-service centre to facilitate people in seeking services from the Government, information regarding permit procedures is easily accessible. |
Part III. Economic and Trade Policy Development: Developments by Sectors/Measures, Tariffs: paragraph 3.16, page 6:
It is noted that: "Duties are levied as ad valorem rate, specific rate, or ad valorem and specific rates, whichever is the higher".
Question: Could Thailand clarify the basis for imposing duties under each respective type of duty listed here?
(Canada) The customs Tariff Decree B.E. 2530 Section 5 determined that "For goods subject to both ad valorem and specific rates of duty, only the rate which renders higher amount of duty shall be applied." |
Tariff Transposition
Question: Is Thailand prepared to apply HS 2017 (including the changes to Chapter 44) on 1 January 2017?
(New Zealand) Thailand and other ASEAN members have begun the process of establishing ASEAN Harmonized Tariff Nomenclature (AHTN 2017) to be implemented by 1 January 2017. This will be in line with WCO HS 2017. |
(iii) Customs procedure
Page 7 (Para 3.19.)
In addition, the Thai Customs Department expects to enter into Mutual Recognition Arrangement (MRA) with other customs administrations to enhance international supply chain security and facilitate movement of legitimate goods in the future. Currently, the Thai Customs Department has already signed the MRA with the Hong Kong, China Customs and Excise Department on 11 June 2015 and is in the process of MRA implementation negotiation. After signing the Action Plan with Korea Customs Service on 24 November 2014, the two Customs Administrations are working on the comparison of written authorization criteria as well as to finalize the Program of Activities for the joint site validation visit.
Question(s): Could you please provide us with the latest progress on MRA scheme and future roadmap in the face of AEC integration?
(Chinese Taipei) Thai Customs Department is in negotiation with Singapore. At present, the two countries are in the process of studying both AEO programs and considering the Joint Roadmap of MRA. Thai Customs Department also proposed signing in Action Plan in order to further proceed regarding MRA. For future roadmap in the face of AEC integration, the cooperation among ASEAN Member States; for example, experience exchange on AEO program and MRA negotiation, are being carried out. |
3.2 Development by sectors/measures
Page 7, Paragraph 3.21
Question: Could Thailand please explain the farm income stabilization programme, including the crop insurance programme, that was part of the Farmers Development Strategy? What agricultural commodities were eligible for crop insurance? How does the crop insurance programme work in practice?
(Australia) In-season rice is the only crop in Crop Insurance Programme. The objective is to prevent the risk from damage occurring in the cultivation of rice farming. The Government would partly support insurance premiums. The crop insurance will cover the risk from flooding, dry spell, windstorm, fires, hail, cold weather disasters, including pest and disease outbreaks which are unpredictable disasters as well. Bank for Agriculture and Agricultural Co-operatives is an administered agency of this program and the private sector is an insurer. |
Question: Under the Production Development Strategy, could Thailand please explain "food security through more cost reduction"? What was the nature of the cost reductions and what agricultural commodities were impacted?
(Australia) Thailand would like to clarify that Thailand intended to increase productivity by encouraging farmers to cultivate in suitable areas for certain crop. The government agency survey found that there was about 34 percent of planting in unsuitable or less suitable area. To grow plant in the suitable area contributes to increase productivity and easier food access. |
Question: Under Agricultural Resources Development, there was a focus on expanding irrigation areas and land development. Could Thailand please explain how the expansion of irrigated areas and land development took place, and what financial or production incentives were offered? What was the nature of assistance to irrigated areas? Was assistance provided on-farm or off-farm for the irrigation areas under the programme?
(Australia) Currently, Thailand has about 20% of irrigated agricultural land while suffering from a severe drought. Therefore, the promotion of integrated water management is needed in order to increase the efficiency of agricultural land for farmers in the area of irrigation water thoroughly and fairly by the administration of water supply and drainage. Also, the irrigated areas were increased by the construction of new water delivery system with the scientific principle selection, the supply of water in the farms and communities including the prevention and mitigation of floods and droughts with the construction of the flood way. The irrigation system provides under this scheme is mainly on farm assistance. The land development is to restore soil in cultivated areas continuously by providing the knowledge transfer in improving soil substances and developing their own organic fertilizer etc. There is no incentive in money at all. The measures are taken to support irrigation and land development for sustainable solutions in agriculture. |
Page 8, paragraph 3.22
Question: Please explain whether Thailand intend to address agricultural trade issues, specifically related to SPS issues, under Legislation and Legislative Amendment Scheme. Also, if trade impacting SPS regulations are proposed, will Thailand notify the WTO at an early stage, prior to adoption and when comments from interested Member States can still be taken into account, as stipulated in Article 7, and Annex B of the SPS Agreement?
(US) Legislation and Legislative Amendment Scheme of the MOAC 2015 Roadmap focuses on the conformation of law to align with international standards and commitments as well as the current situations. The MOAC legislates the regulations as necessary to improve the effectiveness of agricultural sector, not particularly specific to agricultural trade or sanitary and phytosanitary measures. Normally, when trade impacting SPS regulations are proposed, Thailand notifies the regulations to the WTO as early as possible to seek comments from WTO member countries prior to the entry into force of such regulations. Between 1 January 2011 to 12 June 2015, Thailand made 36 notifications along with 22 addenda to the WTO Committee on Sanitary and Phytosanitary Measures. |
3.2 Developments by Sectors/Measures
Pages 7-8, Paragraphs 3.21 and 3.25
Question: Thailand outlines the use of crop insurance programs to insure against natural disasters and other negative impacts to the produce.
Are the crop insurance products issued by the Thai government (either explicitly, through a SOE, or other government subsidiary) or by private insurance providers?
What 'other negative impacts to the produce' are typically covered under these crop insurance policies? Would it include situations such as pest incursions or unexpectedly and unexplained low yields?
(Australia) In-season rice is the only crop in Crop Insurance Programme. The objective is to prevent the risk from damage occurring in the cultivation of rice farming. The Government would partly support insurance premiums. The crop insurance will cover the risk from flooding, dry spell, windstorm, fires, hail, cold weather disasters, including pest and disease outbreaks which are unpredictable disasters as well. Bank for Agriculture and Agricultural Co-operatives is an administered agency of this program and the private sector is an insurer. |
3.2 Developments by Sectors/Measures
Pages 8, Paragraph 3.22
Question: The MOAC 2015 roadmap includes a drought relief scheme which aims to restore infrastructure, improve efficiency to production and provide career training.
What mechanisms are to be used to achieve these aims? Does the drought relief scheme include any direct payments to farmers or have any provisions for adaption to plan for and increase resilience to future droughts?
(Australia) The main purpose is to mitigate the drought. There are various activities such as hiring workers in rural area, Job training in the field of agriculture, providing legumes bean seed and green manure plant, including generating the income and agricultural development in community in order to alleviate the drought. Developing agricultural infrastructure and increasing productivity in community through a participatory process are also encouraged. In addition, government has persuaded farmers to shift their planting to growing crops that use less water, such as sugarcane, corn and legumes. Moreover, the integrated water management would be a sustainable solution for flood and drought in the long term. Thailand does not intend to use the direct payment for these means. |
3.2 Developments by Sectors/Measures
Pages 8, Paragraph 3.23
Question: 3.23 outlines how steps have been taken to implement the 2015 MOAC roadmap by increasing private sector participation on product inspection and certification.
Would any of these arrangements for private sector certification extend to SPS certification which is the responsibility of various Thai competent authorities for exports of plant, animal and food products?
(Australia, US) According to the Cabinet Resolution as of 11 May B.E. 2553, government agencies have been authorized to transfer their responsibilities of inspection and certification to the private sectors for the purpose of lightening the government duties as well as responding to the farmers and manufacturers' demands. The responsibilities transferred to private sectors are limited to accredited laboratories and GAP/GMP inspection and certification. However, government agencies still responsible for policy development of SPS measures, issuance of health certificates and phytosanitary certificates for export, and supervising the operation of the private sectors for the transferred responsibilities. Smart Farmer development policy aim to develop farmers towards professional farmer by enhancing farmers to access knowledge, information, and learning process in order to improve or adapt their farming practice. Smart Officer is the government officers who have well-knowledge on policy and new technology, to help farmer to reach their goal. |
3.2 Developments by Sectors/Measures
Page 8, Paragraph 3.24
Question: Could Thailand confirm that the release of extensive rice stocks built up during the paddy pledging scheme has been (and continues to be) sold at world market prices? Could Thailand also explain what percentage of the rice stockpile has been "lost" due to inadequate storage and loss of product quality? What was the total cost to government of the paddy pledging scheme?
(Australia) To release rice stockpiles in Thailand, the Government has taken inclusive measures for good management and gradually set up auctions for both domestic and export purchases. The released amount shall be carefully considered by all stakeholders and conducted with transparency approach in order not to affect the domestic prices and the global market prices. |
3.2 Developments by Sectors/Measures
Page 8, Paragraph 3.25
Question: Could Thailand please elaborate on how cooperation with the private sector reduced the cost of farm inputs such as fertilizers, pesticides and seeds? Were there any government incentives to the private sector to provide cost reductions?
(Australia) The cost reduction for rice inputs is a short-term project which aims to help farmers to access cheaper inputs. The government sought cooperation from input entrepreneurs to sell their inputs at fair prices to farmers such as seeds, fertilizers and pesticides. |
Question: Could Thailand please elaborate on the insurance programme for seasonal rice to insure against natural disasters and "other unexpected negative impacts to the produce". Do other agricultural crops have similar protection?
(Australia) In-season rice is the only crop in Crop Insurance Programme. The objective is to prevent the risk from damage occurring in the cultivation of rice farming. The Government would partly support insurance premiums. The crop insurance will cover the risk from flooding, dry spell, windstorm, fires, hail, cold weather disasters, including pest and disease outbreaks which are unpredictable disasters as well. Bank for Agriculture and Agricultural Co-operatives is an administered agency of this program and the private sector is an insurer. |
Page 8, paragraph 3.25
Question: Please explain Thailand's sales of rice from intervention stocks for prices lower than the purchase price in light of Thailand's obligations under the WTO Agreement on Agriculture.
(US) Thailand would like to clarify that at present, when conducting tenders, the Department of Foreign Trade will announce the market price of the rice, below which the government will not sell. Therefore, the bidders will not be allowed to offer any price below the market price. |
3.2 Developments by Sectors/Measures
Pages 8, Paragraph 3.26
Question: Thailand advises the government has moved towards a more sustainable and environmentally-friendly fisheries industry and outlines all the work it has done on Illegal, Unreported and Unregulated (IUU) fishing.
Has Thailand engaged in any policy or activities unrelated to IUU fishing which also seeks to achieve a sustainable fishing industry (for example, regarding aquaculture industries)?
(Australia) Thailand's policy towards a more sustainable and environmentally - friendly fisheries industry, include: (1) Promoting good aquaculture practice (GAP) at the national and international levels in order to achieve a management system that does not have adverse environmental effects, and delivers safe and traceable products to consumers. (2) Zoning (3) Promoting the formation of clusters, such as Black tiger shrimp cluster, and co-operatives to increase the bargaining power of farmers. (4) Developing, promoting and supporting environmentally friendly aquaculture, e.g. the Recirculation Aquaculture System, Zero-waste Aquaculture System and Green City Project. (5) Promoting efficient use of feeds and energy in farming in order to reduce the cost of production. (6) Conducting research and development on feeds other than fishmeal. |
Fish subsidies
Question: New Zealand welcomes Thailand's efforts to improve the sustainability of its fisheries including through reforms to tackle IUU fishing as a top Government priority (Paragraph 3.2.5 ) . In New Zealand's experience this requires a whole-of-government approach to ensure policy coherence. We also note that in 2011 Thailand advised that fisheries subsidies provided through the Department of Fisheries equated to about 0.14 % of the total value of fishery production.
With this in mind we ask that Thailand provide:
- the level of subsidies that have been provided to the fisheries sector in the TPR period (total amount and as a percentage of catch value);
- a description of the nature of the subsidies and the stocks affected;
- details of the steps Thailand takes to ensure it is not providing subsidies to vessels or operators engaged in IUU fishing or the fishing of stocks that are in an overfished condition.
(New Zealand) The fisheries subsidies in 2014 provided through the Department of Fisheries equated to about 196.12 million baht or 0.39% of the total value of marine catch production. The nature of fisheries subsidies (1) Mitigation damages of the farmers from the natural disaster under the condition that the fisheries subsidies are not harmful the quantities of fisheries resources. (2) Management natural resources and biodiversity for achieving the balance, sustainability and equity by protecting, conservating and restorating fisheries resources, including to establish the community network to participate in fisheries resources management for the abundance and sustainable use of fisheries resources and help to increase the abundance of fisheries resources. Thailand did not have the policy to subsidies the vessels or operators engaged in IUU fishing or the fishing of stocks that are in an overfished condition. |
Part III. Economic and Trade Policy Development: State-owned Enterprises: paragraph 3.35, page 10:
This section notes that the Cabinet has recently modernized the regulations of the Office of the Prime Minister on the Policy and Governance of State Enterprises.
Question: Can Thailand please provide details on the modernized regulation on Policy and Governance of State Enterprises; specifically the objectives and strategic direction related to how SOE's are chosen for corporatization or kept as state enterprises in conducting social and welfare-related missions.
(Canada) The main objective of SOE reforms is to increase efficiency and effectiveness, enhance transparency and accountability, and mitigate political abuses. One of the main processes is to set up the ownership structure (i.e. National holding company), which will be an independent supervision to manage and monitor the performance of major SOEs. This requires a new legislation that establishes the governance structure, outlining responsibilities of and relationships among the State Enterprise Policy Committee (SEPC), the State Enterprise Policy Office, National holding company, and SOEs. The draft Act comprises two main parts: the overseeing of SOEs and the establishment of the holding entity. According to the governance structure in the proposed legislation, the SEPC will supervise 55 SOEs and will design policies in a macro perspective. These 55 SOEs are divided into 2 groups. On the one hand, National holding company will govern SOEs that are listed and limited companies (in the first stage of implementation) . On the other hand, the State Enterprise Policy Office will command the rest. Currently, the Act for establishing such governance structure is now being drafted and supervised by the SEPC. The proposed legislation is expected to be under the Cabinet's consideration by the end of 2015. In addition to the above legal framework, the SEPC establishes "National Holding Company" Establishment Subcommittee to determine the action plan and timeframe for setting up National holding company, and propose the governance structure, budget, personnel and compensation scheme for National holding company. |
(vi) Industry
Page 9 (Para 3.31)
The Government main policy on industrial development consists of the following objectives: (1) to promote industrial sectors consistent with the country's competiveness, for instance, agro-processing industry, high-tech industry, design and creative industry, and hi-technology machinery industry to transform production process in to automated and semi-automation.
Question(s):
Would Thailand provide more specific and detailed policy on promoting design and creative industry?
(Chinese Taipei) Under the new investment promotion scheme, creative product design and development centers are promoted with 8-year exemption on corporate income tax and exemption of import duty on machinery and raw materials used for export products. |
Would Thailand explain whether there is any preferential policy or limitation for foreign design companies?
(Chinese Taipei) According to the investment promotion policy, there is no different treatment between Thai and foreign investors. However, only creative activities under the BOI list of promoted activities are eligible for investment promotion. |
3.2.8 Government procurement
Page 10, Paragraph 3.37
Question: Australia welcomes Thailand's recent decision to become an observer at the WTO Committee on Government Procurement. What is Thailand's current thinking on seeking accession to the WTO Government Procurement Agreement (GPA)?
(Australia) Thailand has to consider the conditions, rules and regulations of GPA, develop Thailand government procurement rules and regulation to comply with GPA and enhance the understanding of GPA to government agencies, government entities and suppliers before applying for the GPA member. |
Part III. Economic and Trade Policy Development: Government procurement: paragraph 3.38, page 10:
The Secretariat Report notes that "Thailand is currently in the ongoing process of developing an e-GP system… Moreover, e-GP is expected to increase openness and transparency in the process and to help reduce corruptions in government procurement". Canada commends this initiative and is looking forward to working with Thailand towards its use once in place.
Question: When does Thailand anticipate these changes to be finalized?
(Canada) Thailand is in the process of launching the 3rd phase of the Electronic Government Procurement (e-GP) System which are: • e-bidding • e-market • supplier grading system • price performance • certified authority (CA)/digital signature • e-contract Thailand has expected to fully use e-GP system within 2016. |
Question: Will the planned e-GP system be used as a single point of access for all procuring entities?
(Canada) e-GP system is used in central government agencies. Thailand will apply e-GP to all government agencies, state enterprises and local authorities in the future. |
Page 11 (Para 3.45)
Question: We note that Thailand is in the process of amending its competition legislation (i.e. Trade Competition Act B.E. 2542 (1999)) . Could Thailand share with us the key changes that are currently being proposed to its competition legislation, as well as the progress and timeline of the proposed changes? In addition, are there any proposed amendments to the existing exclusions/exemptions?
(Singapore) Amendment of the Competition Act 1999 has been one of the major national reform issues under the current government since 2014. Last month, the National Reform Council submitted its draft amendment text to the Cabinet. The text was discussed among relevant government agencies. Currently, the Ministry of Commerce by the Office of Trade Competition Commission (OTCC) is in the process towards submission of its own amendment text to the Cabinet. The proposed areas of reform in both texts include coverage of application of the law, the establishment of OTCC as an independent body, and adjustment of the penalties to be suitable with the present situation. |
Page 11, Para 3.49
Question: Are there any legal provisions regarding the establishment of a wholly-owned company by foreign passenger and cargo transport enterprises in Thailand? If yes, please provide details of the specific policies.
(China) Article 8(2) of the Foreign Business Act, B.E.2542, stipulates that foreigners are prohibited to do business affecting national safety or security; arts, culture, tradition, folk handicrafts; natural resources or environment as indicated in the List of Prohibited Business No. 2, except obtaining a permission from the Minister of Commerce after getting approval from the cabinet. According to Section 1(2) under the List of Prohibited Business No.2, the business affecting national safety or security also includes domestic land transport, maritime and inland water transport or air transport. |
3.2.12 Intellectual property
Page 12 paragraph 3.52
Question: Could Thailand explain if it has any support measures for SMEs to reduce or exempt patent fees in order to promote patent applications? If so, could foreign applicants utilize such measures?
(Japan) Thailand has initiated a campaign called "IP Mobile Unite", which provide for mobile service of IP registration in suburban area and exempts patent application fees for eligible SMEs, with an amount not exceeding 500 Thai baht. The objectives of this campaign are to promote importance of IPR to provincial entrepreneurs and to encourage them to register their IPR as well as increase overall awareness and understanding of IPR registration under the law. |
Question: Could Thailand provide information about remarkable cases of successful management and utilization of intellectual property by particular enterprises?
(Japan) Thailand puts priorities in recognizing the success of the enterprises in market and utilization of IPR. We present annually "IP Champions Awards" to honor inventers, entrepreneurs or companies who commercialize their innovations thru IP system, in recognition of their significant contributions to promoting and protecting IP. Some of these remarkable examples are Siam Cement Group (SCG) who develop and implement outstandingly their IPR management. |
Page 13 (Para 3.57)
Question: Korea welcomes Thailand's announcement that it is introducing a package of draft amendments to the Trademark Act to support the future accession of Thailand to the Madrid Protocol and addressing the issue of illegal refilling practices. However, there has recently been an issue with the use of the image of the Korean national flag (Taegeukgi) and the Korean alphabet by Thai cosmetic products although they were not made in Korea and have no relationship with Korean cosmetics makers. Would the planned amendments to the current Trademark Act address this problem?
(Korea, Rep. of.) The problems raised by Korea have already been addressed by the current trademark law, namely a trademark consisting of a state flag will be refused. From our search into the database of Department of Intellectual Property, we have not found that the DIP has registered any trademark consisting of Korea's national flag. With regard to Korean alphabets, if it is not a word describing quality or characteristics of the goods directly, it can be registered. This is a general and internationally excepted principle. Therefore the amendment of our trademark law does not necessarily include these issues. |
Page 13, paragraph 3.59
Question: Please clarify the status of the draft Computer Crimes Act and whether there is a time period for review by the Council of State. Also, please identify when it is anticipated that the Act it will be submitted for NLA approval.
(US) Council of State already approved the draft. It is awaiting the submission to the National Legislative Assembly. |
Page 16, paragraph 3.73
Question: Paragraph 3.73 indicates that the National Broadcasting and Telecommunications Commission (NBTC), by master plans focused on spectrum management, the allocation of broadcasting frequencies, seeks among other things, to generate telecommunications and broadcasting services at affordable prices based on fair competition and the efficient management of resources. In this regard, are there official data on the impact of the implementation of these plans on the economic competition in telecommunications and broadcasting?
(Mexico) Competition between 3 key players in the mobile sector led to retail price decrease from average retail price of B 0.66 in Q1 2012 to B 0.44 in Q3 2014.Competition was also stimulated by the introduction of number portability in 2010 which the percentage of success is 85 percent. Mobile penetration reached 139.01 percent by Q1 of 2015 while active mobile numbers both prepaid and postpaid are 85,028,972 numbers. |
Page 16 (Para 3.79)
Question: We appreciate Thailand's efforts to promote the telecommunications sector by improving rules and regulations to facilitate market entry and liberalizing many key services that affect the development of the telecommunications industry, including International Internet Gateway. Could Thailand elaborate on its plans to establish a single Internet Gateway?
(Singapore) Currently, there is no plan to establish a Single Internet Gateway. |
4 REGIONAL TRADE AGREEMENTS AND ECONOMIC COOPERATION
Para 4.5 page 21
Question: Appreciate if Thailand could share with Members some details on the Rules of Origin (ROO) applicable to products from LDCs under its DFQF scheme.
(Malaysia) Preferential Rules of Origin under Duty Free Quota Free Scheme Since the 9th of April 2015, Duty Free Quota Free Scheme has been effective. Import under 6,998 tariff lines (at 8-digit HS code) from the all least developed countries as classified by the United Nations has been exempted from customs duties and quota provided that such good is originating in the exporting beneficiary country. A good will be considered as originating if • it is wholly obtained or produced in the exporting beneficiary country; or • it has a qualify value content of not less than 50 percent of FOB value or the value of non-originating materials content does not exceed 50 percent of FOB value and the final process of production is performed within the exporting beneficiary country. The qualify value content will be calculated based on indirect method. The qualify value content will be calculated based on indirect method as QVC = [ (FOB – VNM) / FOB ] * 100 Where Non Originating Materials means materials imported from any countries as well as materials procured locally within the exporting beneficiary country in which fail to comply with origin requirement sets out in Rules of Origin for Preferential Tariff Treatment for LDCs under Thailand's Duty Free Quota Free Scheme. A good will not be considered as originating good; even through its qualify value content is more than or equal to 50 percent of FOB value if its operation in the export beneficiary country is classified as minimal operations or processes. Moreover, an originating good must be consigned directly from the exporting beneficiary country to Thailand. However, a good will seem to be consigned directly although it is transported through a third country if • a transit entry is justified for geographical reason or by consideration related exclusively to transport requirements; • a good does not enter into trade and consumption in a third country • a good does not undergo any operations in a third country other than unloading and reloading or any other operations to preserved in a good condition. In order to claim preferential tariff treatment under DFQF scheme, "Generalized System of Preferences for Goods under Duty Free Quota Free for Least Developed Countries Certificate of Origin (Form DFQF)" is needed to submit to Thai customs, together with other import documents, at time of importation. A country in the list of eligible countries who would like to enjoy a preferential tariff treatment under the DFQF scheme, please submit name address specimen of official seal of issuing body and specimen signatures of issuing officers to Thai Customs. The format of DFQF certificate of origin other details and information related to rules of origin and operational procedures are provide in link which appeared in Thailand's notification G/RO/N/130 . |
4.2 ASEAN
Page 21, paragraph 4.9
Question: Please provide more details on the objectives and elements of the ASEAN Single Window Pilot Project. What are the role and future plans of the Thai government to achieve the aims of this project?
(Korea, Rep. of) The objectives of ASEAN Single Window (ASW) Pilot Project: • To analyze and design all feasible components of the ASW in order to determine the action plan and guidance for ASEAN member states' compliance in ASW Pilot procedures. • To development and test both ready ASEAN member states' National Single Window (NSW) systems and ASW infrastructure needed to exchange electronic documents. • To conduct parallel testing using live data in both paper and electronic form prior to cutover to live operation by December 2015 or early 2016. • To assess the outcomes of the ASW Pilot Project covering technical and financial matters for enhancing and addressing all aspects for the live implementation. The elements of ASW Pilot Project: • In term of physical infrastructure, ASW is composed of NSW of ASEAN member states where bilaterally operate and integrate via ASW environment. • The exchangeable document is the electronic ATIGA Form D, and considering the other documents related to Customs clearance to be further use through ASW. • The relevant agencies comprise the Customs administration, the issuing authorities, such as ministry of trade or commerce in regard to the ATIGA Form D issuance. • The legal framework, regulations, and the relevant agreement will be used to electronically enable the secure cross-border transactions and regulatory requirements in ASW. Role and Future Plans of the Thai Government: • The Thai Customs Department as a lead agency in establishing Thailand NSW and relevant agencies are enhancing NSW and other electronic systems to support the live exchange of electronic ATIGA Form D. • The amendment and ratification of the legal framework and relevant draft regulations has been reviewing by our representatives from related legal working group to support ASW data exchange. • The capacity building for the concerned stakeholders, e.g. the customs officers, importers/exporters will be conducted to gain their benefits and real understanding in electronic ATIGA Form D usage. |
Page 21(Para 4.11)
Question(s): As we know that Thailand's Nat'l Trade Repository (NTR) has been launched since November 2014, could Thailand elaborate the progress of developing ASEAN Trade Repository (ATR) among ASEAN members?
(Chinese Taipei) The ASEAN Trade Repository (ATR) provides a single point of access to all the trade-related information of ASEAN Member States. The ATR is an ASEAN-level IT interface linked by means of hyperlinks to a series of interoperable National Trade Repositories (NTRs) that provide and maintain the national-level trade related information and the actual contents. |
The trade-related information accessible through the ATR is organized on the basis of nine 'topics' in line with Article 13 of the ASEAN Trade in Goods Agreement (ATIGA) . All the actual information is available on NTRs of the ASEAN Member States and duly maintained by their respective Governments. The information found on the ATR is accessible both by 'topic' and by 'country' (i.e., the ten ASEAN Member States) . The nine 'topics' are the following: (1) tariff nomenclature; (2) MFN tariffs, preferential tariffs offered under the ATIGA and other Agreements of ASEAN with its Dialogue Partners; (3) rules of origin; (4) non-tariff measures; (5) national trade and customs laws and rules; (6) procedures and documentary requirements; (7) administrative rulings; (8) best practices in trade facilitation; and (9) list of authorised economic operators. The structure of the ATR allows, for each topic, to retrieve the trade-related information sought in each ASEAN Member State. For the National Trade Repositories of each ASEAN Member States, please visit http://atr.asean.org/read/national-trade-repositories/60. |
Page 23, Paragraph 4.22
Question: As it is a signatory to the 2012 APEC Economic Leaders Declaration on Environmental Goods, has Thailand given any further consideration to joining the Environmental goods Agreement (EGA) currently being negotiated by WTO members?
(Australia) Thailand is currently undertaking EGA's product analysis and internal consultation with relevant agencies and stakeholders. However, as we have encountered 3 major problems during the implementation of tariff reduction in the APEC List of Environmental Goods and as EGA incorporates wide coverage of products, Thailand would require times for further analysis and consultation prior to joining the EGA. 3 major problems include: (1) The clarification of products (product's description may not be practical for customs' administration) . (2) The mismatch between HS code and product's description. (3) The difficulty of convincing stakeholders about reducing their tariffs because products under each HS code may not necessarily be environmental-related. |
Question: Could Thailand provide an overview of the progress it has made so far as to the implementation of the APEC's 2012 commitment to reduce the applied tariff rates of the APEC List of 54 Environmental Goods by the end of 2015?
(Canada) The tariffs on 43 products out of 54 products in APEC EGs list have been reduced to 5% or less. The remainder is subject to the consideration of the Ministry of Finance and other related agencies. However, the final outcome of the consideration should be announced by the end of 2015. |
5. FUTURE ECONOMIC AND TRADE POLICY DIRECTIONS
Pages 26, Paragraph 5.4
Question: Thailand outlines that it aims to increase the economy's competitiveness through different strategic plans on agriculture, i.e. for Thailand's main crops such as rice, maize, cassava, palm products and palm oil, sugarcane and sugar.
Are the strategic plans referred to the ones under 3.22? If so, which plans relate to which commodities and if not, which other plans are being used to increase the competitiveness of these specific industries?
(Australia) The six guidelines of the MOAC roadmap 2015, the same as the once under 3.22, are the structural and mechanical development and supports with covering the impact mitigation of natural disasters. They are also include improving the regulatory in accordance with international standard and commitment and area-based agricultural extension without focusing on specific products. |
Question: Could Thailand please elaborate on the Thai Government's plans to encourage farmers to shift from rice to sugar production? What government incentives are provided to encourage this commodity production shift, if any?
(Australia) According to the study of area suitability of rice, there are almost 30% of rice cultivating in unsuitable ground. Such practice results to the lower yield. Therefore, the government agency announced the suitable agricultural products for growing in the area concerned to farmers as a guideline. This plan is implemented in voluntary-based manner to ask the farmer to change their planting to appropriate plant without any incentive measure. |
Page 47, paragraph 3.32
Question: Given WTO compliance concerns raised by multiple Members in the past, please explain how the authority provided to BOI in the Investment Promotion Act Article 49-50 is a WTO consistent measure.
(US) Although the BOI retains its authority under Article 49-50 of the Investment Promotion Act, Thailand still monitors the WTO consistency of all measures when exercising one and has successfully managed to steer clear of the measure since 2004. |
__________
1 In English only./En anglais seulement./En inglés solamente.
2 Reference to 4.113 Thailand TPR Secretariat Report.
3 See 2.29 in the Secretariat Report.
4 Reference to 4.120 Thailand TPR Secretariat Report
5 Reference to 3.82 Thailand TPR Report