With its abundance of natural resources and relatively cost effective structure, Thailand is considered one of the best investment locations for multinational companies, especially for manufacturing. A growing number of free trade agreements (“FTAs”) entered into by Thailand further enhances its attraction. However, such benefits often come with complex rules and regulations. Companies often find themselves confused by the increasing number of and ever-changing regulatory requirements, resulting in the inability to optimize their business set-ups, and in the worst case scenario, face administrative and criminal charges for violations of Thai laws and regulations.

Bryan Cave International Trade has extensive customs, trade and investment expertise in Thailand. We assist clients on their business strategies and operations in Thailand to capitalize on various tax benefits while ensuring compliance with the extensive governing laws and regulations. We also represent clients in dealing with investigations and enforcement actions initiated by Thai authorities.

Customs Compliance & Advisory

Thailand attracts a large portion of foreign investments with a catalog of incentives that includes various import duty reduction and exemption privileges. In order to capitalize on such privileges, companies need to understand and keep up with the strict and constantly evolving regulatory requirements. These include determination of the origin of goods, tariff classification and valuation. Although, customs privileges are designed to reduce import duties, obtaining these privileges usually require additional investment. If the requirements are not properly complied with, companies may face significant penalties.

Bryan Cave International Trade provides assistance in identifying cost saving opportunities, reviewing and implementing customs compliant systems, as well as managing potential liabilities. Specifically, BCIT assists clients in:

• Reviewing transaction, documentation, supply chain and financial flows, identifying the cost-savings opportunities as well as assessing the risks;

• Providing up-to-date information about the conditions and criteria for granting privileges, in order to identify cost-saving opportunities as well as minimize risks;

• Reviewing importations to ensure that information provided to Thai Customs is accurate and complies with the relevant rules and regulations;

• Reviewing goods and document flows, correspondences, internal controls and systems, contracts and agreements, and transfer pricing policies;

• Determining the declared value of imports for customs purposes. This includes advice relating to dutiable elements not included in the invoice price as well as possible exclusion of certain costs, partially or wholly, from the transaction value resulting in lower customs value and thus, reduced payable duty/tax;

• Determining/verifying the origin of the goods pursuant to relevant rules of origin to exercise the appropriate import duty reduction privileges;

• Identifying the best approach to take when engaging Thai Customs on specific customs matters, ensuring that the applicable evidence, documentation and/or justification is put forward to obtain the correct outcome;

• Developing a reliable and practical internal system to ensure customs compliance;

• Reviewing and updating transfer pricing policies from the perspective of indirect tax planning and assisting in risk analysis; and

• Training relevant personnel to ensure that they understand the customs issues and know how to manage them effectively.

Strategic Business Advisory

Bryan Cave International Trade works with clients to develop the most optimal solution for their investment and business strategies with regard to Thailand. We advise clients on:

• Structuring their operations to capitalize on certain special schemes, such as Board of Investment (“BOI”) promotion programs, bonded warehouse schemes, free zones and export processing zones, as well as assisting clients to obtain the official approvals on participation in the schemes;

• Reviewing transaction, documentation, supply chain and financial flows, identifying the cost-savings opportunities as well as assessing the risks; and

• Facilitating the allocation of foreign specialists for positions in Thailand by assisting with obtaining the approval from the BOI in relation to work permits and non-immigrant visas for expatriates.  

WTO & FTA Advice

Many of Bryan Cave International Trade’s consultants are former trade and investment officials with experience negotiating free trade agreements (“FTAs”) and at the World Trade Organization (“WTO”). We assist clients in:

• Monitoring the status and direction of Thailand’s on-going FTA discussions and analyzing the implications of the on-going discussion in relation to a client’s business and operations;

• Understanding the interpretation and application of the FTAs that Thailand has entered into;

• Reviewing government programs relating to the industrial and services sectors for compliance with WTO rules and FTA obligations;

• Avoiding potential WTO-related problems in transactions (e.g., addressing discriminatory regulations and barriers in the services and other sectors), as well as on leveraging on WTO rules to obtain fair treatment and/or to increase market access; and

• Devising investment schemes, incentive programs and other tax and regulatory structures that are compliant with WTO rules and FTA requirements for presentation to the government.