Thailand Tightens Export Rules to Combat 'Fake Thai' Goods Targeting US

Ministers act to prevent Chinese products being fraudulently labelled, risking US tariffs

 

The Thai government is escalating efforts to prevent Chinese goods being falsely labelled as Thai to avoid US import duties.

 

The Department of Foreign Trade is taking over all approvals for Certificates of Origin (C/Os) for US-bound exports and has expanded its watchlist of high-risk products to 65 categories (224 tariff codes).

 

Discussions with US Customs are underway to align product classifications.

 

The move follows concerns raised by the US about Southeast Asian countries being used to relabel Chinese goods.

 

While Thailand enjoys a trade surplus with the US, it has a significant deficit with China.

 

The government aims to prevent this loophole from being exploited, which could harm genuine Thai exports.

 

Prime Minister Paetongtarn Shinawatra has tasked the Department of Foreign Trade with leading new verification measures and monitoring the high-risk goods, mostly industrial products.

 

Longer-term plans include stricter penalties for companies misrepresenting origin.
 
The Ministry of Commerce is coordinating with US Customs on tariff codes and will now be the sole issuer of general C/Os for the initial 49 monitored items.

 



 

The Department of Foreign Trade is also actively reviewing another 65 high-risk product categories (224 tariff codes) for potential origin misrepresentation.

 

They are in communication with CBP to address concerns and establish joint operational procedures to ensure alignment on information, particularly regarding the specific tariff codes of goods being tracked and monitored by the US, as some classifications differ.

 

Once clear details are established, joint working and inspection protocols will be developed. Subsequently, rigorous factory inspections and export documentation checks will be implemented for high-risk goods, in collaboration with the Department of Industrial Works and other relevant agencies, to ensure US Customs accepts Thai verification processes. 

 

The Department of Foreign Trade intends to expedite this matter.

  

The Federation of Thai Industries (FTI) has highlighted instances of Chinese firms falsely claiming Thai origin and urges strong legal action. They noted that some Chinese companies ship goods to Thailand to obtain Thai C/Os and then export them to the US to avoid tariffs.

 

Furthermore, the Ministry of Commerce may need to pursue legal action against those found guilty of misrepresenting origin to serve as a deterrent, rather than simply revoking individual C/Os.

 

The government must prioritise preventing this practice and swiftly implement necessary trade measures, such as anti-dumping and anti-circumvention measures.

 

Deputy Prime Minister and Finance Minister Pichai Chunhavajira has instructed the Board of Investment (BOI) to revise investment incentives to prevent Thailand from being used for tariff evasion, potentially including stricter local content requirements for manufacturers.

 

The BOI plans to propose these changes by May 2025, aiming to ensure that investment benefits local manufacturers and reduces reliance on the US market.

(2025/04/28-00:00)