Are you involved in Import and Export Business in Thailand? This can be a good piece of information for you. Thailand’s Customs Department gave few relaxations to ease out the COVID-19 stresses on importers and exporters in Thailand.
Many businesses and individuals are facing difficult situations due to the COVID-19 pandemic. Therefore, Thailand’s Customs Department has made a crucial provision allowing importers and exporters to temporarily postpone pending customs duties requirements. This policy was included in the Announcement of Customs Department No. 103/2564, dated July 1, 2021. It was published under sections 37 and 38 of the Customs Act B.E. 2560. Additionally, it addresses processes and conditions for requests to delay overdue duty payments during the COVID-19 pandemic.
Background of Revision of Rules
Importers and exporters have the right to petition the Thai Customs Department. They can communicate for a duty payment hold at various stages of the customs consideration process under the Customs Act. This right applies to petitioners who are appealing a customs duty assessment. Additionally, this applies to those who have filed claims in Thai courts disputing a judgement of the Customs Board of Appeals.
The Main Announcement of the Customs Act on Principal, Methods and Conditions for Requesting a Stay of Outstanding Duty Payments No. 189/2560 was issued on December 29, 2017. It stipulates that a party appealing a customs duty assessment to the Customs Board of Appeals can request a stay of payment of outstanding duty payments.
The Customs Department responds to the COVID-19 pandemic’s pressures in mid-2020 by issuing relief measures. Firstly, a short-term easing of certain documentation requirements. Finally, then a longer-term extension of the deadline for requesting a review of outstanding import duty penalties, fines, and surcharges. This extension is until September 30, 2021.
Relief for Payments on Customs Duty
With the epidemic still wreaking havoc in Thailand in 2021, the focus of the Customs Department is towards providing relief to importers and exporters. They require more flexibility in completing their duty payment responsibilities. In this regard, the recent announcement of July 1, 2021, temporarily replaces the previous strict thirty-day deadline. However, it is for petitioners who submit a request during the period July 1 through September 30, 2021.
Importers and exporters appealing a duty assessment to the Board of Appeals might obtain a delay from the customs institution that issued the official letter of assessment. Those with a lawsuit with a Thai court disputing a Customs Board of Appeals ruling on duty assessment may obtain a stay directly from the Customs Department’s Legal Division.
There is something more for allowing petitioners to obtain a temporary delay of duty payment. The current notification provides procedural flexibility for depositing a security deposit. It covers the amount of the duty assessment when requesting a temporary stay. Only a petitioner who is also an “Authorised Economic Operator” (AEO) might submit a credit-based letter of guarantee as security. They can do so with the request to suspend outstanding duty payment in an amount sufficient to satisfy the duty assessment. This protocol is according to regulations in effect since December 2017.
Update for Petitioners without AEO Status
All petitioners, regardless of their AEO status, can deposit a credit-based letter of assurance under the temporary relief provisions. A petitioner can also submit a previous bank guarantee. However, it is possible at the customs clearance stage of importation or exportation. Moreover, it must accompany a bank statement permitting the guarantee of re-use for the overdue duty payments. However, this is a second option for delivering the security deposit.
The period for examining petitions to postpone payment of overdue duties remains the same. It is within fifteen days from the approval and denial of the request from the Director-General of the Customs Department. Additionally, one may receive a fifteen-day allowance if necessary, but with permission. All petitions for stay approvals are limited to outstanding duty assessments. It is applicable for those who are less than nine years old from the date of importation or exportation. It is due to statutory prescription limitations for customs assessment liabilities.
The Bottomline
During a difficult era for Thailand and the region, this announcement enabling temporary stay requests gives more flexible stay restrictions. It reflects the Customs Department’s understanding of the COVID-19 pandemic’s impact on import and export in Thailand, as well as the critical role they play in the supply chain. The Customs Department will examine whether to extend the measure beyond September 30, 2021, as Thailand and its neighbours continue to bear the economic burden of the protracted pandemic.
In case you need any type of support regarding Import-Export payment clearance or formalities in Thailand, feel free to mail us at [email protected]. Our team of specialists can help you to get import-export licenses as well.
