Tax News: Thailand to Impose 10% Import Duty on Low-Value Goods to Support SMEs #thaicustomduty

[Source: Reuters]

The Ministry of Finance has announced that, starting 1 January 2026, Thailand will begin collecting a 10% import duty on low-value imported goods worth 1,500 THB or less, which were previously exempt. The measure aims to protect SMEs from the surge of low-cost imported products flooding into the country.

This policy is expected to affect the e-commerce, logistics, and retail sectors, as carriers will now need to conduct duty assessments on millions of parcels. It also marks a major policy shift in Thailand’s approach to regulating low-value cross-border imports.

Summary

- Thailand will impose a 10% customs duty on imported goods valued under 1,500 THB (previously duty-exempt).

- Effective 1 January 2026.

- The government says the measure aims to protect SMEs from cheap imported products, especially from China.

- The government is seeking cooperation from e-commerce platforms to help with tax collection.

- The policy impacts e-commerce, logistics, retail, and transport operators, who will now need to process duty assessments.

- Tilleke & Gibbins notes this is a major structural shift from the previous era of duty-free low-value imports.

- The previous administration had already approved 7% VAT collection on the same category of goods.

- Cheap Chinese imports have severely affected Thai manufacturers, causing factory closures and driving demand for policy intervention.

Pros

- Protects Thai SMEs: Reduces unfair competition from low-cost, low-quality foreign imports.

- Supports domestic manufacturing: Thai factories may recover as pressure from low-cost imports declines.

- Increases government revenue: From the newly imposed customs duty + existing VAT.

- Improves product quality control: Helps limit the influx of low-quality or unsafe goods.

Cons

- Higher costs for consumers: Low-cost goods purchased online from abroad will now incur duty (10%) + VAT (7%).

- Significant workload for e-commerce & logistics providers: Millions of parcels will need customs processing and tax assessment.

- Potential product shortages: Especially for low-cost items not sufficiently produced in Thailand.

- Cost pressure on online sellers: Thai sellers relying on low-value imported goods (LVC) will face higher costs.

- Trade tensions: Trade partners may view the policy as a protectionist barrier.

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