BANGKOK, Thailand – Thailand’s Customs Department has collected more than 4 billion baht in import tax and VAT under a policy requiring taxes to be paid on foreign goods from the first baht of value, while authorities are also examining products labeled “Made in Thailand” that may not genuinely be produced domestically. Customs Department Director-General Phanthong Loykulnant said the department had collected more than 4 billion baht in import tax and VAT since the first-baht collection policy took effect on Jan. 1, 2026.
During the first 11 months of fiscal 2026, from October 2025 through August 2026, imports covered by the measure were valued at about 41 billion baht, involving approximately 225 million items.
Phanthong said the amount of import tax collected had declined, partly because higher prices for overseas products had encouraged consumers to buy more goods produced and sold domestically through platforms operated by sellers based in Thailand. Imports of miscellaneous products from China have remained relatively stable, although consumers have reduced their orders, he said.
The Customs Department is also examining products declared as “Made in Thailand” where officials suspect the goods may not actually have been manufactured domestically. Phanthong said Thailand needs to address such cases because claims about the origin of goods can affect the country’s exports and its trade relations, including concerns raised by the United States. He said officials were examining businesses that appear to import goods under one tariff classification and export them under the same classification, which could indicate that little or no processing had taken place in Thailand.
The Customs Department is working with the Department of Foreign Trade to examine relevant manufacturing licenses and other information. Phanthong cited cases in which a factory appeared large enough for production but machinery was reportedly covered and not in use. He said such cases represented only a small part of overall exports but still needed to be investigated.
He also pointed to limitations in Thailand’s industrial production data, saying some newer industries may not yet be fully reflected in the Manufacturing Production Index (MPI), potentially creating discrepancies between reported industrial activity and export figures.
Overall revenue collected by the Customs Department on behalf of other government agencies reached 590.8 billion baht during the first 11 months of fiscal 2026, up 9% from the same period a year earlier. The figure includes taxes and fees collected on behalf of agencies such as excise tax, VAT and local government-related taxes. The department expects these collections to exceed 600 billion baht for the full fiscal year, compared with 596 billion baht recorded in fiscal 2025.
VAT collected by Customs on behalf of other agencies amounted to 383 billion baht during the first 11 months, an increase of 11% year-on-year.
Phanthong noted that Customs’ own import-tax revenue has been declining over time because Thailand has free trade agreements with numerous countries, meaning many imported goods enter with little or no customs duty. He said import duties are now collected mainly on goods from countries and regions without applicable free trade agreements, including the United States, parts of the Middle East and some European countries.
For every 100 baht of goods passing through Customs, the department collects only about 0.82 baht in customs duty, he said. While direct customs-duty revenue is relatively small, Phanthong said the department’s role in collecting taxes on behalf of other government agencies generates substantially more revenue.
