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As published by the Ministry of Foreign Affairs, Kingdom of Thailand.
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III. SELLING TO THAILAND
A. Import policy, regulations and procedures
Throughout the 1990s, the Thai Government has been shifting its trade
policy in order to promote more efficient industrial development, reduce
protectionism and improve the overall tariff structure. Part of Thailand's
structural adjustment has been a progression of import tariff adjustments, aimed
at reductions in compliance with World Trade Organization (WTO) principles.
As a result, Thailand does not prohibit imports in any category and continues to
liberalize trade accordingly.

1. Import approval

In general, imports require no formal approval. Import licenses are
required for only small number of items. Importers may import goods if
obtaining letter of credit, with authorized banks approving payment following
submission of the necessary documents.

2. Licensing, quotas and prohibitions

Currently, there are approximately 40 items subject to import licensing
required by the Ministry of Commerce under The Export and Import Act, B.E.
2522 (1979). Most items subject to import licensing are controlled by non-
automatic licensing, Import licences must be requested from and approved by the
Foreign Trade Department, Ministry of Commerce, prior to the arrival of the
shipment. An import licence is usually valid for three months from the date of
issuance, unless specified otherwise on the licence.

Three types of licenses are currently in effect in Thailand:

Non-automatic licensing covering the majority of items, especially
agricultural goods

Special measures licensing applied to yellow fin tuna for environmental
conservation, and wood and sawn wood from Myanmar to maintain a
positive political relationships


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Protection of public morals and public health licensing

Moreover, some products are subject to import surcharges including fish
meal and soya bean cake. In the case of soya bean cake, surcharges apply only
for non-WTO members, except Lao People's Democratic Republic and
Cambodia.

Products controlled under import licenses include:

Antique idols, including parts thereof, and parts of ancient monuments
from or originating from other countries

Ceramic food containers coated with lead of solubility more than 2 mg per
liter

Chain saws, including parts and accessories thereof within tariff number
8467.81, 8467.91, 8508.20 and 8508.90

Clenbuterol compounds, of hemical name -1-(4-Amino-3,5- diehlorophenyl)
-2-tert-butyl-aminocthanoll and its salts

Coffee
Coins in size and weight similar to coins in official circulation
Copra and coconut, desiccated
Dried longans
Fish meal with protein lower than 60 per cent
Fresh milk, not concentrated whether sweetened or not

Gold ores, gold bars, in lumps, in foil or in any other form, or mixed with
any materials, excluding goldsmiths' wares generally used as personal
ornaments

Gunny bag

Intaglio printing machinery within tariff number 8443.50 and color
photocopiers within tariff number 9009.11 or 9009.12


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Jute and kenaf

Machinery and parts thereof which may be used to violate copy rights of
cassette tape, video tape, and compact disc

Marble traverine ecaussine and other calcareous monumental and building
stone of an apparent density of 2.5 kg or more per 1,000 cubic centimeters,
uncompressed; and alabaster, including such stones not further worked other
than roughly split, roughly squared or squared by sawing within tariff
number 25.15

Potato
Rice

Six-wheel buses, over 30 passengers capacity, whether fitted with seats or
not

Tobacco

Unfinished garments, parts or components thereof falling under tariff
numbers 61.01 to 61.14.6117.90,62.01 to 62.11 and 6217.90, except collars,
cuffs, waistband, pocket and cuffs for trouser

Used Diesel engine, displacement of 331-1100 cc, flat piston and cylinder
case within tariff number 8408.90

Used engines, parts and accessories of motorcycles displacement not over 50
cc and wheels with diameters not over 10 inches

Used motor vehicles whether reconditioned or not.
Used motorcycles within tariff number 8711
Viny chloride monomer

- in form of gas or liquid under pressure

- mixed or combined with product contained in acrosols or
airsprays only, insecticides, hair spray and air refreshencrs



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Waste, parings and scrap of plastic

Worked monumental or building stone, alabaster and articles there of
including mosaic cubes

In the context of trade liberalization, it is also necessary to periodically
check the notifications of the Ministry of Commerce for changes in items subject
to import licensing. The notifications are periodically distributed by the Ministry
of Commerce and also published in the Government's Royal Gazette. Details of
the notifications may also be obtained from the Foreign Trade Department,
Ministry of Commerce.

A number of items are subject to controls under laws and regulations of
other ministries, such as the Ministry of Public Health, the Ministry of Industry
and the Ministry of Agriculture and Cooperatives. Importation of pharmaceutical
products, for example, require import licences from the Ministry of Public
Health under Drug Act, B.E. 2510 (1967). The licence enforcement is in
accordance with the rules, measures and conditions prescribed in ministerial
regulations. Every item used in drug preparation must also be licenced.

At the present time, validity of an issued licence is life-long. However,
in the near future a re-evaluation process will be developed to set up a fixed
period of time for licensing validity. Some drugs are listed in the consolidated list
of banned or restricted products. Information on these items can be acquired by
request.

Any imports of poisonous substances must be registered with the
Government according to the Poisonous Articles Act. The Ministry of Public
Health also administers the Food Quality Control Act which requires special
permits for the import of irradiated foodstuffs.

(a) Quotas

Thailand, as a member country of WTO, is required to liberalize
markets such that import licences will no longer be in use. Importers must,
however, posses a certificate which indicates quota amount to be approved by

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Customs Department in order to obtain low tariff rate. However, the above-
mentioned measure is applied among WTO members only.

(b) Import
prohibitions

Imports of counterfeit products, goods utilizing deceptive practices and
goods infringing copyright are also banned. Used engines and parts of small
motorcycles, household refrigerators utilizing chlorofluorocarbons (CFCs) and
electrical or mechanically operated games are banned for reasons of health or
public morals.

3 Anti-dumping duties

Currently, anti-dumping duties are applied to the following goods:

Hot-rolled steel sheet in coils from Russian Federation and Ukraine
Structural steel (H-beam) from Poland and Republic of Korea
Float glass from Indonesia
Hydrogen peroxide from India

4. Food and drug import requirements

The Food and Drug Administration (FDA), Ministry of Public Health is
the govenment entity whose main responsibility is to protect consumers from
substandard or harmful products. Goods, under the jurisdiction of FDA, imported
or locally-produced, are subject to the same licensing, registeration and labelling
requirements.

Products under the jurisdiciton of FDA are not confined only to food
and drugs, but also include cosmetics, household hazardous substances narcotics,
medical devices and psychotropic substances. However, food and drugs
constitute the bulk of licences issued under the FDA.

5. Import procedures

Importers of food and drug products need a licence which requires a
premises inspection. All drugs imported into Thailand must be also be registered

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beforehand, barring imported pharmaceutical raw materials which
require only an import licence. Registration is also required for certain kinds of
food, including beverages in sealed containers, coffee, food additives, infant
food, milk and tea. Importation of food raw materials to manufacture finished
food products are exempt from registration requirements. Products that are
registered must abide by what is specified in the registration form such as
labelling, manufacturing process, product appearance, specifications and
standards. Imported food that does not require registration must only adhere to
labelling requirements for domestic sales in accordance with related
notifications.

6. Manufacturers in Thailand

Manufacturers of both food and drug products are required to have
licences. The drug manufacturers are subject to the Code of Goods
Manufacturing Practice of World Health Organization (WHO), while Hazard
Analysis Critical Control Point (HACCP) is applied to food manufacturers.

7. Process reforms

International agreements, both bilateral and multilateral, have shortened
and simplified procedures for granting FDA licences and registration.
Transparent time requirements are explicitly declared, with any delays justified
to the applicant. In general, standards for food and drugs set by the Thai FDA are
similar in scope with international standards such as Codex, International
Standards Organization (ISO) guides and pharmacopoeia.

Recently, the Customs Department and FDA introduced a simplified
process of import procedures. Customs officers now require FDA officers'
approval only in cases of first importation, in cases where packaging
accidentally breaks during transportation and in cases where the customs officer
has doubts regarding the safety of products.

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Contact addresses

The Food and Drug Administation
Ministry of Public Health
Tiwanond Road, Amphoe Muang
Nonthaburi 11000
Tel: (662) 590-7281, 591-8452
Fax: (662) 591-8457
E-mail : somdejs@health.moph.go.th

Standard Analytic Method Division
The Customs Department

Sunthornkosa Road, Klong Toey, Bangkok 10110
Tel: (662) 249-4339, 249-1122, 249-0431-40 ext 3101
Fax: (662) 249-4097


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B. Customs

1. Regional and international cooperation

Thailand has a total of 41 bilateral agreements with various countries.
Table 5 provides a list of agreements on trade, economic and technical cooperation.

Table 5. Bilateral agreements




Country
Trade agreement
Economic cooperation
Japan


Republic of Korea
28 December 1957

Argentina
15 September 1961

Austria
10 December 1961
20 October 1981
United States of America
30 September 1964

India
29 May 1966
2 June 1977
Canada
13 December 1968

Islamic Republic of Iran
22 April 1969
11 July 1988
Bulgaria
12 November 1969

Russian Federation
3 March 1970
In progress
Bangladesh
25 March 1970
In progress
Viet Nam
22 August 1977

China
31 March 1978
12 March 1985
Lao People's Dem. Rep.
1 June 1978

Hungary
15 September 1978
In progress
Romania
18 September 1978
In progress
Czechoslovakia
20 September 1978
In progress
People's Dem. Rep. of Korea
26 February 1979

Yugoslavia
5 October 1979

Australia
15 November 1980
In progress
Poland
18 November 1980
In progress
Germany
10 February 1980

New Zealand
22 October 1981

Chile
21 October 1981
In progress
Senegal
16 March 1984
In progress
Pakistan
16 March 1984
1 Sept. 1997
Egypt
12 September 1984
In progress
Brazil
28 September 1984
12 Sept. 1984
Iraq
15 April 1986

Tunisia
7 March 1987
In progress
Kuwait
23 March 1987
In progress
Turkey
12 April 1989

Myanmar

6 June 1972
Netherlands

2 Dec. 1985
Norway
12 Dec. 1986
Spain
24 May 1988
Finland

Economic Union of Belgium and
23 Nov. 1979
Luxembourg

Italy
10 February 1983



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Thailand's participation in subregional trade cooperation includes the
Agreement on ASEAN Preferential Trading Arrangements, 1977. Thailand is
also a signatory to the Bangkok Agreement of 1975 which provides for mutual
reduction and elimination of import duties among signatory Economic and Social
Commission for Asia and the Pacific (ESCAP) member countries.

Thailand also participates in a number of commodity agreements and
arrangements:


Asian and Pacific Coconut Community

Association of Natural Rubber Producing Countries

International Coffee Agreement

International Agreement on Jute and Jute Products

International Rubber Agreement

International Sugar Agreement


International Agreement on Tropical Timber and Association of Tin
Producing Countries

From 1 January 1988, Thailand has been using the Harmonized System
commodity classification system, based on the International Convention on the
Harmonized Commodity Description and Coding System. For tariff purposes,
Thailand uses the six digits code of Harmonized System and adds a seventh digit
for national purposes.

The tariff formulating body is The Fiscal Policy Office (FPO) of the
Ministry of Finance.

Contact addresses
The Fiscal Policy Office
Ministry of Finance

Rama VI Road,
Bangkok 10400
Tel: (662) 273-9020
Fax: (662) 273-9168


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2. Customs duties

From 1985 to 1995, import customs duty rates have been changed
several times in line with economic considerations and government policy.
Before 1 January 1995, the tariff for imported goods was relatively high using
up to 39 rates from 0-100 percent with an average percentage of 30.24. On 1
January 1995, the government reduced import tariff rates to only 6 bands
(excluding motor vehicles) as follows:

0 per cent: exempted duty goods, including instruments and appliances used
in dental, medical, surgical or veterinary sciences

1 per cent: raw materials
5 per cent: primary and fundamental products
10 per cent: secondary products
20 per cent: finished products
30 per cent: special protection products

The average import tariff rates is currently 17.01 per cent.

Most duties are ad valorem, based on the cost, insurance and freight
(CIF) price. When a specific duty is applied, the calculation is based on weight,
volume or units. Duties based on weight refer to net weight, not including
packaging materials, unless expressly stated otherwise. Some items have both
specific and ad valorem rates. Where an item has both types, the rate yielding the
higher revenue is applied.


3. Preferential trading arrangements

Thailand was one of the founding members of Association of Southeast
Asian Nations (ASEAN) in 1967; the other founding members were Indonesia,
Malaysia, the Philippines and Singapore. Brunei Darussalam joined ASEAN as
the sixth member in 1984, while Viet Nam joined ASEAN as the seventh
member in 1995.


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The ASEAN Basic Agreement on Preferential Trading Arrangements of
February 1977 provides a framework for preferential trading and trade
liberalization among member countries. The system includes: (1) long-term
quantity contracts, (2) purchase finance support at favourable interest rates, (3)
preference in government procurement, (4) extension of tariff preferences, (5)
liberalization of non-tariff measures on a preferential basis and (6) any other
measures mutually agreed upon. The exchange of tariff preferences among
ASEAN member countries is the most prominent of the six mechanisms under
the agreement. The trade preference negotiations are conducted by the ASEAN
Committee on Trade and Tourism (COTT) under the authority of the ASEAN
Economic Ministers (AEM).

Margins of preference range from 5 to 20 per cent. To date, 14,462
items have been granted tariff concessions under ASEAN Basic Agreement on
Preferential Trading Arrangements. Under the current implimentation
programme of the ASEAN Free Trade Agreement, the tariff rates of the products
catagorized as normal track must be reduced to 20 per cent by 1 January 1998
and must be reduced to between 0 and 5 per cent by 1 January 2003. For
products catagorized as fast track, the tariff rates must be reduced to 0 per cent
by January 2000.

In order for export goods to qualify for ASEAN Basic Agreement on
Preferential Trading Arrangements they must be wholly produced in an ASEAN
country, or they should be products for which the total value of production
materials from non-ASEAN sources does not exceed 50 per cent of free on board
(FOB) value. The rate is 40 per cent in the case of Indonesia.

(a)
The Global System of Trade Preferences Among Developing Countries

Thailand is a member of the Global System of Trade Preferences
Among Developing Countries (GSTP) which constitutes a major instrument for
the promotion of trade among members of the 77 developing countries.

As a preferential trading arrangement, the GSTP comprises a set of
components that include tariff, non-tariff and other trade measures with a view to
furthering the expansion of the GSTP scheme. Participants may periodically

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hold rounds of negotiations and conduct these negotiations in accordance with
any, or a combination of, the following approaches:

Across-the-board tariff reductions
Direct trade measures
Product-by-product negotiations
Sectoral negotiatons

A tariff as defined by the GSTP Agreement, is a customs duty stipulated
in the national tariff schedules of the participants. The negotiating objective in
the area of tariffs is to establish an effective margin of preference for mutual
trade among the GSTP participants. Negotiating countries will also aim at
achieving significant reductions of high duty rates and an increase of minimal
preference margins to commercially significant levels with a view to improving
access to markets for their export products.

4. Customs valuation

There are three methods of levying duties on imported goods: (1) goods
on which ad valorem rates are applied, (2) goods on which either specific rates or
ad valorem rates are applied, whichever is higher, and (3) goods attracting only
specific rates. The national concept of assessable value of duty used by Thai
Customs is based on the true market value of the goods in the open market.
"True market value of goods" is defined as the wholesale cash price, exclusive of
duty in the case of imports, for which goods of like kind and quality would be
sold without loss at the time and place of importation or exportation without any
deduction or abatement.

In practice, the Customs Department has established procedures of
customs valuation for officers to follow. However, if any facts or reasons are
presented that are beyond the normal case, then the Customs Department will
take this information into account on a case-by-case basis.

The adoption of the General Agreement on Tariffs and Trade (GATT)
evaluation Agreement is being considered by the Customs Department.



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5. Taxes and surcharges

According to the Export and Import Act, B.E. 2522 (1979), the Minister
of Commerce, with the approval of the Council of Ministers has the power to fix,
revise or cancel rates of special fees for import and export. Both the Minister of
Commerce and the Minister of Finance control execution of the Export and
Import Act by appointing competent officers and issuing ministerial regulations
and notifications.

The Customs Department has authority to collect a business tax which
is levied on almost all imports. Assessment of the business tax is based on cost
plus duty and a standard profit. The business tax on most imports in usually 1.5
per cent or 9 per cent. For some import items, such as motor vehicles, the
business tax can range up to 40 or 50 per cent. A 2 per cent reduction of the
business tax is allowed if paid in cash or made as a cash deposit at the time of
submitting the import declaration.

In addition to the business tax, there is a municipal tax which is
equivalent to 10 per cent of the business tax.

The BOI is given the power to levy surcharges on imports, if necessary,
to protect local or promoted industries. Such surcharges are levied on specific
items. The regulation imposing the surcharge is effective for one year and may
be renewed for subsequent one year periods. Recently, the BOI has been placing
less reliance on imposition of surcharges. As of August 1998, the BOI repealed
surcharges on bars and rods, and hydrogen peroxide.

Contact addresses

The Customs Department
Ministry of Finance
Sunthornkosa Road, Klong Toey
Bangkok 10110
Tel: (662) 249-4339, (662) 249-1122, (662) 249-0431
Fax: (662) 249-4097



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C. Foreign exchange regime

In general, Thailand has a liberal system of exchange controls, and
foreign exchange is available without restriction to cover merchandise imports.
The Bank of Thailand administers exchange control and delegates responsibility
to commercial banks to act as authorized agents for most transactions.

Since foreign exchange liberalization in 1991, no approval is required
for any outgoing payments for imports. Importers may freely purchase or draw
foreign exchange from their own foreign currency accounts for import payments
by presenting either the sales contract, bill for collection or invoice. Letters of
credit may be opened without authorization by providing documentary evidence
such as a proforma invoice and other relevant documents.

There are no exchange restrictions relating to exports. However, there is
a requirement for export proceeds to be brought into Thailand immediately after
payment has been received, but within a maximum of 120 days from the date of
export and surrendered to an authorized agent or deposited in a foreign currency
account with an authorized agent in Thailand within seven days from the date of
receipt.

1. Currency convertibility

The Thai currency, the baht, is freely convertible. Since 2 July 1997,
Thailand has adopted a managed float exchange rate policy under which the
exchange rate is determined on the basis of demand and supply conditions in the
exchange markets.


2. Money and finance measures

There are no special requirements for the settlement of trade
transactions.

3. Banking

The Bank of Thailand is the central bank which administers the
Exchange Control Act of B.E. 2485 (1942), and related regulations, notifications
and notices.

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All commercial banks whose business is specified in the commercial
Banking Act, B.E. 2505 are authorized agents. As of 1 June 1998, there are 36
commercial banks in Thailand, 16 domestic and 20 foreign. Domestic banks have
branches throughout the country.

At present, 52 banks, 15 domestic, 18 foreign with branches in Thailand
and 19 foreign without branches in Thailand have been licensed under the
Bangkok International Banking Facilities (BIBF). Currently, 48 are in operation.
The main operations of BIBF are acquiring of foreign funds in foreign currencies
for the purpose of lending of foreign currencies in Thailand and outside
Thailand.

4. Methods of payment

Table 6 categorizes the methods of payment for trade transactions.


Table 6. Methods of payment
(Percentage)

Methods of
Imports Exports
Payment

1994
1995
1996
1997
1994
1995
1996
1997
Letter of credit
40.2
41.3
34.5
28.4
39.0
35.1
34.1
32.3
D/P
2.2
2.6
2.0
1.7
10.3
10.1
8.7
8.2
D/A
7.3
6.9
5.8
4.9
5.3
4.9
4.2
3.6
Offset
2.4
1.5
4.9
5.7
7.5
6.4
7.7
6.8
Advance
0.6
1.2
0.2
0.2
0.8
0.4
0.4
0.4
Payment
14.1
12.8
14.4
16.3
nil
nil
nil
nil
Open Account
33.2
33.7
38.2
42.8
37.1
43.1
44.9
48.7
Others
Total
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Source: F.T.1 and F.T.2 forms, Bank of Thailand

The use of cash, cheque, draft and fund transfer has increased over the
past few years and together accounted for the largest proportion of payment
methods used in Thailand's international trade settlements in 1997. Letters of
credit accounted for around 30 per cent of trade payments. Other methods of
payment used are bills of exchange, offset, advance payment and open account.

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5. Other exchange regulations

There are no other exchange regulations relating to imports and
exports.

Contact address for further information

Bank of Thailand
273 Samsen Road
Bangkhunprom
Bangkok 10200
Tel: (662) 283-5353
Fax: (662) 280-0449, 280-0626

D. Documents

Table 7. Documents required for imports




Document
Number of Copies
Responsible authority



Import certificate
1
The concerned authorities
Import entry form
5
Tariff Division, Customs


Department
Commercial invoice
4
Export (Seller)
Packing list
1
Export (Seller)
Bill of lading or air waybill
1
Transportation Company
Foreign transaction form
1
Bank of Thailand
(F.T.2)

(For goods with value
exceeding baht 500,000)
Source: Bank of Thailand


1. Special requirements

The Customs Department may require a certificate of origin for imports
from ASEAN nember countries. A quality control certificate may also be
required by the Customs Department depending on the nature of the shipment.
The Department of Medical Sciences, Ministry of Public Health is responsible
for issuing the health and sanitary certificates concerning food and drugs. An
import or export license may be required for specific goods.


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E. Marketing and distribution

1. Market regulations

Strict regulations are in effect concerning food items and medicines.
The Ministry of Public Health prescribes standards, qualities, methods of
manufacture and labelling requirements for controlled foodstuffs and medicines.

The metric system is generally used in Thailand, although some
traditional weights and measures are still used. In the Thai market, buyers prefer
to have accompanying labels, instructions and descriptions in Thai for imported
products. For many products it is mandatory to have labelling, instructions or
warnings in Thai.


2. Product standards

The national standards organization of Thailand is the Thai Industrial
Standards Institute (TISI) which is under the Ministry of Industry. TISI prepares
and publishes industrial standards, grants licences for use of standards marks,
promotes use of standards, represents Thailand at the International Organization
for Standardization (ISO), the International Electrotechnical Commission (IEC)
and cooperates with the WHO Food and Agricultural Organization Food
Standards Programme.

TISI develops standards and carries out a certification scheme that
includes certification marking and product registration. As of 1995, the number
of published Thai industrial standards was 1,313, of which 41 are compulsory
standards. A list of the items subject to compulsory standands is shown in table
8.

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Table 8. List of compulsory standards published by the Thailand Industrial Standards Institute





1. TIS 4 : Part I-2529(1986)
Incandescent lamp
2. TIS 10-2529(1986)
Low-voltage distribution link fuses
3. TIS 11-2531(1988)
PVC-insulated cables and flexible cords
4. TIS 20-2532(1989)
Unplasticized polyvinyl chloride pipes for

Drinking water service
5. TIS 20-2527(1984)
Steel bars for reinforced concrete : rounds bar
6. TIS 23-2521(1978)
Ballast for fluoredcent lamps
7. TIS 24-2536(1993)
Steel bars for reinforced concrete : deformed bar
8. TIS 27-2528(1985)
Liquefied petroleum gas containers
9. TIS 30-2527(1984)
Nitrous oxide for medical use
10. TIS 51-2530(1987)
Canned pineapple
11. TIS 52-2516(1973)
Tapioca products
12. TIS 53-2536(1993)
Matches
13. TIS 78-2528(1985)
Laundry detergent powder
14. TIS 183-2528(1985)
Starters for fluorescent lamps
15. TIS 196-2536(1993)
Automotive safety glasses : laminated safety

Glass
16. TIS 197-2536(1993)
Automotive safety glasses : tempered safety

Glass
17. TIS 198-2536(1993)
Automotive safety glasses : zone tempered

Safety glass
18. TIS 211-2527(1984)
Steel bars for reinforced concrete rerolled round

Bars
19. TIS 293-2526(1983)
PVC-insulated aluminium cables
20. TIS 309-2525(1982)
Mosquito coils and sticks
21. TIS 330-2530(1987)
Hard tapioca pellet
22. TIS 332-2537(1994)
Dry chemical portable fire extinguishers
23. TIS 341-2528(1985)
Motorcycle exhaust muffler
24. TIS 344-2530(1985)
Lampholders for tubular fluorescent lamps and

Starterholders
25. TIS 366-2528(1985)
Electric iron
26. TIS 369-2528(1986)
Protective helmets for road users
27. TIS 370-2525(1982)
Liquified petroleum gas cylinder for internal
28. TIS 496-2526(1983)
Combustion engines
29. TIS 520-2527(1984)
Lacquer thinner
30. TIS 531-2536(1993)
Automotive nitrocellulose lacquer thinner

Plastics containers for steril pharmaceutical
31. TIS 539-2527(1984)
Products
32. TIS 540-2527(1984)
Carbon dioxide for medical use
33. TIS 882-2532(1989)
Oxygen for medical use
34. TIS 870-2532(1980)
Portable fire extinguishers : foam

Electric stoves; open type heating elements :
35. TIS 934-2533(1990)
safety requirements
36. TIS 950-2533(1990)
A.C. electric fans : safety requirements
37. TIS 956-2533(1990)
Solid alcohol fuel
38. TIS 1040-2534(1991)
Fluorescent lamps : safety requirements
39. TIS 1120-2535(1992)
Two-stroke gasoline engine lubricating oil

Gasoline engined vehicles : safety requirements :
40. TIS 1140-2536(1993)
emission from engine, level 2

Light duty diesel engined vehicles : safety
41. TIS 1185-2536(1993)
Requirements; emission from engine, level 1

Motorcycles : safety requirements; emission
from engines, level 2



29


When the standard for a product has been made compulsory, both the
manufacturer and the importer are required to obtain a licence to manufacture or
import such a product for sale in Thailand. TISI will carefully examine whether a
product conforms to the standard and whether the factory's production quality
control is satisfactory before granting a licence.

The regulations of the Ministry of Industry specifies the required
documents and supporting materials that must be provided when applying for the
licence. After TISI issues a licence, the licensee must mark the products with the
standard mark before the products can be released by the Customs officer. The
Minister of Industry may permit marking after release from Customs only under
specified conditions. The Customs Department is in charge of clearing and
sampling imported products submitted for inspection.

Details concerning standards for imported products are set forth under
the Industrial Product Standards Act, B.E. 2511 (1968) and its amendments; the
Industrial Product Standards Act (No. 2), B.E. 2522 (1979) and the Industrial
Product Standards Act (No. 3), B.E. 2522 (1979) and the Industrial Product
Standards Act (No. 4), B.E. 2531 (1988) and the Industrial Product Standards
Act (No. 5), B.E. 2535 (1992), together with related ministerial regulations. The
TISI brochure, Certification Marking Procedures is designed as a guideline in
applying for a licence to manufacture or to import industrial products for sale in
Thailand requiring a standards mark.


3. Distribution systems


Bangkok is the main port and transit zone for Thailand's trade, as well
as the centre for government and industry. There are also about 30 small-scale
provincial ports. Provincial ports at Phuket and Songkhla in southern Thailand
are being upgraded and developed into deep-water ports capable of handling
20,000 dwt vessels. Two other deep-water ports are planned or under
construction at Laem Chabang and Map Ta Phut as part of a large-scale,
Government-sponsored Eastern Seaboard Programme to create an industrial
growth centre in the area south-east of Bangkok.


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Bangkok's Klong Toey port has facilities to handle container, bulk and
breakbulk cargo and can accommodate 19,000 dwt vessels. The planned port at
Laem Chabang will have a capacity for berthing agri-carriers of 120,000 dwt.
The international deepwater port planned at Map Ta Phut is being designed to
handle vessels as large as 60,000 dwt. In the initial phase, the capacity will
consist of multipurpose berths for 20,000 dwt vessels and two berths for
hazardous cargos in vessels up to 8,000 dwt.

Thailand's land transport system is comprised of an inter-city road
network of about 45,000 kilometres. The railway network of 4,500 kilometres
radiates from Bangkok to other urban centres throughout the country and to
Malaysia.

Thailand has an extensive system of inland waterways comprised of
rivers and canals which are used to transport goods to various parts of the
country. The main artery in the water transport system is the Chao Praya River.
There are about 6,000 kilomtres of inland waterways in Thailand.

Bangkok International Airport is a major transit point in South-East
Asia and has had its cargo facilities as well as passenger terminals modernized
and expanded. Three other international airports are located at Chiangmai in the
north, and Haad Yai and Phuket in the south. There are also local services to
twenty-two airports in provinces throughout the country.

A number of commercial businesses of various types and sizes handle
the sale and distribution of imported goods. Generally, there are four main kinds
of importers-agents.

The first kind is the smaller-sized importer who specializes in one line
of business, usually for the purpose of maintaining much-needed contact with
potential buyers. They might, for example, specialize in selling to particular
goverment departments or particular industries. A second kind of importer-agent
is the long-established expatriate company which may have large-scale activities
and handle marketing and distribution for a wide variety of products. The third
type of importer/agent is the relatively new company which has technical
capability and uses modern marketing techniques. Companies in this category
aim at growing into major marketing organizations. The fourth type of

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importer/agent is known as an international trading company. These are private
firms specifically set up to do import-export business. They are also been granted
privileges by the BOI in the form of tax and duty exemptions.


Wholesale firms which handle imported items are mostly located in the
Bangkok metropolitan area. There are many different types of retail firms and
shops. They range from the small neighbourhood general store to a wide variety
of specialty stores to modern supermarkets, department stores and discount stores
in metropolitan and suburban areas.

Marketing and advertising for imported products must consider the
unique social and cultural characteristics of Thailand. For Thai buyers, price is
usually the major factor, although they also consider issues of quality and
durability related to higher prices. Thai buyers are especially aware of brand and
its associations to quality and reputation.

Flexibility in tailoring imported products to meet local demand and
local markets is important. In addition, labelling and instructions should be in
Thai language even when not prescribed by regulation. After sales service is also
an important element for marketing in Thailand.


Contact addresses


Port Authority of Thailand
Sunthornkosa Road
Khlong Toey, Bangkok 10111
Tel: (662) 249-0362, (662) 249-0399, (662) 249-0419
Fax: (662) 249-0885

Laem Chabang Port
Sriracha, Chonburi 20230
Tel: (6638) 351-761-80
Fax: (6638) 351-789


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Thai Airways International Public Company Limited


89 Vibhavadi Rangsit Road, Bangkok 10900
Tel: (662) 513-0121
Fax: (662) 513-5532
Telex: 82890 BKKKXTG TH CABLE THAINTER

Airports Authority of Thailand
89 Vibhavadi Rangsit Road
Bangkok 10210
Tel: (662) 535-1111
Telex: TH 87424 AIRHOTL TH 87425 AIRHOTL
Cable: AIRPORTHAI
Fax: (662) 531-5559

Thai Maritime Navigation Company Limited



15th Floor Manorom Building
3354/51 Rama IV Road
Klong Toey, Bangkok, 10110
Tel: (662) 249-0100-7
Telex: 87328, 84653 TMNSHIPTH
Fax: (662) 249-0108, (662) 249-7578


F. Government procurement, State and public trading organizations

Countertrade practices were first lauched in Thailand in 1981 under the
responsibility of the Ministry of Commerce. The value and volume of
countertrade conducted at the time was relatively low in proportion to the total
Thai trade figure and mostly in the form of barter trade. However, the Thai
Government has resumed its effort in establishing the countertrade policy as a
supplementary measure since 1993 aimed to promote and expand Thai trade by
the Government. The most common type executed at present is in the form of
counterpurchase.

Under cabinet resolution of 6 June 1995 and 30 April 1996, the current
countertrade policy is as follows:


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Any procurement of foreign products or services made by government
agencies and state enterprises with minimum imported value of baht 500
million will be obligated under countertrade requirements

The counterpurchase value is placed between 20 to 50 per cent of the
imported content price

The eligible forms of countertrade consist of counterpurchase, technology
transfer and joint venture

Consideration of specific exemptions and changes to counter purchase
proportion is under the authority of the Subcommittee on Countertrade

Countertrade exemption will be granted to any procurement stemming from
a soft loan or donation offered by certain international monetary institutions,
foreign governments of foreign governmental organizations as well as
export financing listed by the Subcommittee on Countertrade

Countertrade principles and procedures are to be in accordance with the
decision of the Subcommittee on Countertrade

The cabinet has recently approved that value of projects in excess of B
300 million is subject to counterpurchase obligations and that the
counterpurchase value must be no less than 50 per cent. This cabinet decision is
pending a declaration in the Royal Gazette for enforcement.

No specific items are identified to be imported by or through
government procurement and state or public trading organizations

Contact addresses

The Department of Foreign Trade, Ministry of Commerce
4 Sanamchai Road, Bangkok 10200
Tel: (662) 225-1315

Fax: (662) 622-1728



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The Department of Foreign Trade,
Ministry of Commerce
4 Sanam Chai Road,
Bangkok 10200
Tel: (662) 223-1481-5, (662) 225-1315-29
Fax: (662) 224-7269

The Electicity Generating Authority of Thailand (EGAT)
53 Charan Sanit Wong Road
Bang Kruai, Nonthaburi 11000
Tel: (662) 423-0580, (662) 423-0590
Telex: 8274 EGAT TH

The Metropolitan Electricity Authority (MEA)
30 Soi Chidlom, Ploenchit Road
Pathumwan, Bangkok 10330
Tel: (662) 254-9550
Fax: (662) 253-1424
Cable: METELEC Bangkok
Telex 82746 TH

The Provicial Electricity Authority (PEA)
200 Ngam Wong Wan Road
Chatuchak, Bangkok 10900
Tel: (662) 589-0100-1
Fax: (662) 589-4850-1
Telex: 72224 PEABKK TH
Cable PEA Bangkok

Telephone Organization of Thailand (TOT)
89/2 Moo 3 Chaengwattana Road
Khet Dommuang, Bangkok 10210
Tel: (662) 505-1000
Fax: (662) 574-9533
Telex: 82886 Tel Thai TH



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Thailand Tobacco Monopoly
184 Rama IV Road
Khlong Toey, Bangkok 10110
Tel: (662) 253-0353
Fax: (662) 255-4220
Telex 72438 TOBIN TH

The Royal Irrigation Department
Samsen Road, Bangkok 10300
Tel: (662) 241-0740-9
Fax: (662) 243-0966
Cable: DEPROIR Bangkok 10300
Telex: 72307 DEPROIR TH

The Department of Highways
Sri-Ayutthaya Road
Ratchathevi, Bangkok 10400
Tel: (662) 246-1122-30


IV. BUYING FROM THAILAND

A. Export policies, regulations and procedures

For several decades, Thailand's development policies have been based
on free market economics with an emphasis on export-oriented agriculture and
industry. Thailand is one of the five largest food exporters in the world. In
manufacturing, export policy aims to have the country become a major export
platform for foreign companies seeking to relocate primary manufacturing as
well as assembly, component and sub-assembly operations.

The Foreign Trade Department, Ministry of Commerce, administers
export controls. Food staples and important materials are under export control to
ensure that domestic needs get priority. Other export controls demanded by the
Government are intended to assure the quality and quantity of supply in
compliance with international and bilateral agreements. The Thai Industrial