Thailand Tightens Export Rules to Combat Mislabeling of Thai Products in the U.S. Market

The Thai government is intensifying its efforts to prevent Chinese goods from being fraudulently labelled as Thai products to evade US import duties. This action comes in response to US concerns about Southeast Asian countries being used to relabel Chinese goods, which could harm genuine Thai exports.

Key Points

• Thailand is tightening export rules to prevent Chinese goods from being falsely labeled as Thai to avoid US import duties.
• The Department of Foreign Trade is now responsible for all Certificates of Origin (C/Os) approvals for exports to the US and has expanded its watchlist to 65 high-risk product categories.
• Thailand is in discussions with US Customs to align product classifications and establish joint operational procedures.
• The government aims to prevent the exploitation of Thailand as a transit point for Chinese goods, which could harm genuine Thai exports.
• Stricter penalties are planned for companies misrepresenting origin, and the Board of Investment (BOI) is revising investment incentives to prevent tariff evasion.

Thailand has recently implemented stricter export regulations to address the issue of mislabeling Thai products in the U.S. market, particularly in response to concerns over “origin fraud.” This practice involves falsely labeling goods as Thai to gain trade benefits, such as lower tariffs. The move comes amid heightened U.S. scrutiny and the imposition of a 36% tariff on Thai goods, which has strained Thailand’s export-driven economy.

The new regulations require exporters to provide detailed documentation verifying the origin of their products. This step is crucial to restoring trust with international trade partners and ensuring that genuine Thai products are not unfairly penalized. Thai authorities are also collaborating with U.S. officials to enhance transparency and streamline the verification process. In addition to regulatory changes, the Thai government is investing in technology to track and authenticate goods more effectively.