Customs duties, imposed under the Customs Tariff Decree BE 2530 are levied on both imports and selected exports.

               Goods that are obscene, dangerous to health, or harmful to the national economy may be prohibited from import. Moreover, specific goods may be restricted from time to time, and these require prior government permission before being either imported or exported. Apart from these, most goods may be imported or exported after complying with the necessary customs procedures and the payment of customs duties, where applicable.

A. Imports
              1. Classification
                  Thailand has adopted the Brussels Tariff Nomenclature (BTN) as an instrument for customs tariff classification since 1960. The BTN was renamed as the Customs Co-operation Council Nomenclature (CCCN) in 1974.
                   Due to the enormous changes in the area of innovation of new technology, industrial production, commercial techniques, and the pattern of ‘goods in international trade’ which has taken
place during recent decades, the CCCN has become less effective in facilitating the expansion of such international trade. The CCCN has developed a new system called “the Harmonized System” arising to serve not only the custom’s purpose but also purposes in other areas such as transportation, industrial production, statistics, and international trade data.
                  This new system helps a great deal in solving delays and bottlenecks associated with customs formalities. However, some discontent and frustration among importers and exporters still prevails as the system gradually develops.
                  Nowadays, classification of imports is based on the Harmonized Commodity Description and Coding System (Harmonized System 2002). This system covers approximately 5,505 items and is consistent with classifications used by most of Thailand’s trading partners.

                 2. Tax Rates   
                 The customs tariff rates are listed in Part 2 of the Customs Tariff Decree BE 2530 (1987). Duties are levied on either a specific or an ad-valorem basis, whichever is the higher. The value of imports is based on their CIF prices. Customs tariffs previously ranged between 0% - 80%, the highest rate being for passenger cars. Nowadays, the Customs tariff rate has been reduced and the range has narrowed to that of targeting 3 rates for production processes, namely:
                 (a) 1 % for raw materials and inputs not produced locally.
                 (b) 5 % for semi-finished products.
                 (c) 10% for finished products, products requiring extra protection, and luxury goods.

                  As a result of the customs tariff reform in 2002, the number of tariffs was decreased to 3 rates as shown above. However, the reform package has yet to be completed in its entirety. Items remaining include petrochemical products, which constitute about 95 percent, their tariffs will be reduced in line
with the 3-rate framework. The average tariff rate as of January 1, 2004 is 12.8 %.

                 3. Exemption
                     Imported goods exempted from customs duties are listed in Part 4 of The Customs Tariff Decree BE 2530 (1987).
                (1) Export articles including those exported which are then re-imported within one year without any change in character or form, and for which a re-importation certification was obtained at the time of exportation.
                (2) Articles imported into Thailand under which duty has been paid and subsequently sent out of the country for repairs, if re-imported within one year from the date of re-importation certificate issued at the time of exportation.
                (3) Tools, equipment and ammunition, vehicles and merchandise samples brought into Thailand for the purpose of exhibition, entertainment, employment reasons, or travel and which will be re-exported within six months.
                (4) Prizes and awards for personal work or performance in arts, science, literature, sports or public services or otherwise as a record of meritorious achievement or conduct.
                (5) Reasonable amounts of personal consumption goods with the exception of automobiles, firearms, and ammunitions.
                (6) Second-hand household effects in reasonable amounts, accompanied with the owner on change of domicile.
                (7) Part and accessories of aircrafts or vessels including materials imported to be used for repair or construction of aircrafts or vessels.
                (8) Fuel oil, lubricating oil, and lubricants to be used for replenishment of that stored on aircraft or on ships not exceeding 500 tons gross tonnage.
                (9) Crops, cultivated by persons having domicile in Thailand, on islands and along the foreshore of rivers forming the Thai boundary.
                (10) Privileged goods in accordance with the Thai government and the United Nations or those with diplomatic reciprocity.
                (11) Motor vehicles imported or exported for public donation to a charitable purpose on behalf of government organizations or public charity organizations or goods imported for gifting to government organizations or public organization.
                (12) Postal package, imported, value per package not over 1,000 baht.
                (13) Munitions to be used in by an official service.
                (14) Samples of merchandise, fit only to be used as such and having no commercial value.
                (15) Containers.
                (16) Tools and equipment for the handicapped.
                (17) Imported goods to be used at an international conference in reasonable amounts and under certain rules and conditions.
                (18) Exported goods, proved to the satisfaction of the Director General of the Customs Department, that they were imported not more than two years ago and have not changed in character or form.

                 B. Exports  
                     Export duties are listed in Part 3 of the Customs Tariff Decree BE 2530 (1987), and currently imposed on only two groups of commodities, namely, raw hides and wood.