Customs duties are governed by the Customs Tariff Decree of 1987, an amendment of previous tariff codes, to conform to the Harmonized System of the Customs Cooperation Council. Tariff duties on goods are levied on an ad valorem or a specific rate basis. The majority of goods imported by businesses are subject to rates between zero and 80%.
The majority of imported articles are subject to two different taxes: tariff duty and VAT. Export duties are imposed on only a few items including rice; hides, skins, and leather; scrap iron and steel; rubber, including latex, rubber waste, tree and lump scraps, earth rubber, and bark shavings from trees; teak and other kinds of wood.
Thailand is a member of the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO). Thai Customs law adopts practices and standards in accordance with the GATT codes in determination of customs price.
As a part of the BOI’s Investment Promotion Program, BOI-promoted companies are eligible to receive exemptions or reductions from import duties on raw and essential materials as well as machinery.