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August 23, 2023

Self-Reporting of Unpaid Customs Duty in Thailand

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Self-reporting of customs violations in Thailand is normally carried out at the ports. However, in 2020, the Customs Department launched a campaign called the One Stop Service Program (OSSP) for business operators to self-report issues relating to unpaid customs duty from a central location in Bangkok. The current extension of the OSSP, which has been extended several times over the past few years, is due to expire on September 30, 2026, although a further extension seems likely.

The OSSP offers a number of benefits. As noted above, settlement of unpaid duties can be done centrally in Bangkok even though the customs clearance itself is performed at Thai ports. Crucially, the fine for unpaid duty can be waived or reduced, and there is no late-payment penalty, which would normally amount to 20% of the unpaid duty if there is an official assessment and the duty is not paid within 30 days. The surcharge is reduced from 1% to 0.25%–0.75% per month on the unpaid duty.

Nevertheless, any value-added tax (VAT), VAT surcharge, and VAT penalty on the unpaid duty still apply.

To participate in the OSSP, the following conditions must be met:

  • The offense must be considered a false declaration charge (Section 202 of the Customs Act), such as one involving value, price, tariff code, tariff rate, privileges, or other similar issues.
  • The business operator must have committed the offense without intending to evade duty or restrictions.
  • The goods must not be prohibited or infringe intellectual property.
  • The declarations must not be under investigation by any authority in Thailand.

Applications to participate in the OSSP can be submitted to the Post-Clearance Audit Division of the Customs Department, and applicants must provide the necessary documentation, such as customs declaration forms, invoices, purchase orders, sales contracts, and other payment documents.

The officers will review the documentation and verify the additional duty payment amount, and they may request additional information or documents before issuing a payment request.

For further details or assistance on the OSSP regulations, or on any aspect of customs regulations in Thailand, please contact Chitchai Punsan at [email protected] or Jamorn Pornponwat at [email protected].

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