You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 18, 2021

Thai Customs Department Temporarily Eases Restrictions on Requesting Stay of Duty Payments

Subscribe to Updates

Sensitive to the difficulties many business entities and individuals are experiencing during the COVID-19 pandemic, the Thai Customs Department recently implemented an important measure providing importers and exporters with the opportunity to temporarily stay pending customs duty obligations. This measure, which addresses procedures and conditions for requests to stay outstanding duty payments during the COVID-19 pandemic, was included in Announcement of Customs Department No. 103/2564, dated July 1, 2021, issued under sections 37 and 38 of the Customs Act B.E. 2560 (2017).

Background

Under the Customs Act, importers and exporters have the right to petition the Customs Department for a stay of duty payments at various stages of the customs consideration process. For example, this right extends both to petitioners who are in the process of appealing a customs duty assessment, and to those who have filed claims in the Thai courts challenging a Customs Board of Appeals decision.

On December 29, 2017, Main Announcement of the Customs Act on Principal, Methods and Conditions for Requesting a Stay of Outstanding Duty Payments No. 189/2560 was issued, stipulating that a party who appealed to the Customs Board of Appeals regarding customs duty assessment (or submitted a further complaint with the Thai courts challenging the board’s decision) can request a stay of payment of outstanding duties within thirty days from the date of filing an appeal regarding customs duty assessment.

In mid-2020, the Customs Department responded to the pressures of the COVID-19 pandemic by issuing relief measures—first a short-term easing of certain documentation requirements, followed by a longer-lasting (until September 30, 2021) extension of the deadline for requesting review of import duty penalties, fines, and surcharges on outstanding import duty amounts.

Relief for Payment of Customs Duty

With the pandemic still being acutely felt in Thailand in 2021, the Customs Department turned their attention to relief for importers and exporters who need more flexibility in meeting their duty payment obligations. In this regard, the recent announcement of July 1, 2021, temporarily replaces the previous strict thirty-day deadline for requests for stay for those petitioners who submit a request during the period July 1 through September 30, 2021. Importers and exporters who have filed a duty assessment appeal with the Board of Appeals may submit a request for stay directly to the customs entity that issued the official letter of assessment. Meanwhile, those who have filed a complaint with the Thai court challenging a Customs Board of Appeals decision on duty assessment may submit a stay request directly to the Legal Division of the Customs Department.

In addition to providing this time for petitioners seeking to temporarily stay duty payment, the recent announcement offers procedural flexibility for submitting a security deposit (covering the duty assessment amount) upon requesting a temporary stay. According to the regulations in place since December 2017, only a petitioner who is also an “authorized economic operator” (AEO) could submit a credit-based letter of guarantee as security with the request to stay outstanding duty payment in an amount to cover the duty assessment. Under the temporary relief measures, all petitioners—regardless of their AEO status—can deposit a credit-based letter of guarantee. A second option for providing the security deposit is for a petitioner to submit the previous bank guarantee from the customs clearance stage of importation or exportation, along with a certified statement from that bank allowing re-use of the guarantee for the outstanding duty payments.

The timeframe for considering requests to stay payment of outstanding duties remains unchanged—the director general of the Customs Department will approve or deny a request within fifteen days (plus an additional fifteen-day allowance if necessary and authorized). Due to statutory prescription periods for customs assessment liabilities, all requests for stay approvals are limited to outstanding duty assessments that are less than nine years from the importation or exportation date.

This announcement allowing temporary stay requests provides more flexible stay rules during a challenging period for Thailand and the region. It represents the Customs Department’s recognition of the impact of the COVID-19 pandemic on importers and exporters, as well as the vital importance they play in the supply chain. As Thailand and its neighbors continue to experience the economic burden of the ongoing pandemic, the Customs Department will reevaluate whether to extend the measure beyond the current September 30, 2021, time period.

Related Professionals

Practices

Customs and International Trade

Dispute Resolution and Litigation

Location

RELATED INSIGHTS​ 

June 17, 2025
On January 9, 2025, the Lao official gazette published the newly amended Decision on Trade Inspection Implementation No. 0019/MOIC, dated January 6, 2025. This decision aims to establish principles and rules for trade officers to inspect, fine, and take measures against violators of trade laws and their related regulations on business competition, business operations, and intellectual property rights to protect consumers and business operators in Laos. Changes in Trade Inspection Procedures Previously, trade inspection officers, operating independently under the central Ministry of Industry and Commerce (MOIC) or the provincial-level Department of Industry and Commerce (DOIC), were responsible for administrative raid actions focusing exclusively on intellectual property issues. However, following the enactment of Decision No. 0019/MOIC, trade inspection officers will now be grouped into the Trade Officers Unit, which will also include business competition officers and consumer protection officers. This unit will conduct and participate in raids, considering not only intellectual property laws but also competition and consumer protection laws when imposing penalties on infringers. Trade Inspection Authority Levels Trade inspection implementation is overseen by authorities at three levels: Central level: Department of Business Competition and Trade Inspection, MOIC. The MOIC handles trade inspection work covering all provinces in Laos. Provincial level: DOIC offices in provinces and Vientiane handle trade inspections covering two or more districts. District level: Office of the Industry and Commerce offices in districts. Violations Individuals, legal entities, and organizations violating the newly amended trade inspection decision, the Decree on Trade Inspection, or other related regulations will be educated about the issue, warned, disciplined (for government servants), fined, subject to compensation for damage incurred, or punished by the relevant laws, depending on the gravity of the violation. Trade Violations Violations of trade laws and regulations concerning business operations will result in fines and additional measures. Examples include:
Read More
June 13, 2025
In today’s digital age, cyberattacks have become a real threat to organizations worldwide. These attacks can range from phishing and malware to ransomware and distributed denial of service (DDoS) attacks. As the frequency and sophistication of these attacks increase, so does the importance of cybersecurity compliance. In the corporate world, compliance refers to the process of ensuring that a company and its employees adhere to all relevant laws, regulations, standards, and ethical practices—but it should not stop there. Compliance should also encompass asset recovery and disciplinary measures, which can both help organizations address incidents effectively and promote good governance. Cyberattacks are malicious attempts to access or damage a computer system or network, often carried out for financial gain, for political activism, or simply to cause disruption. For instance, a successful attack might involve an attacker creating an email address that closely resembles a legitimate one, perhaps by changing only one or two characters. That email address is then inserted into an existing conversation thread, making it appear as if the user with this email address was already part of the discussion. This tactic can easily deceive a recipient into believing the email was sent from a trusted source, thereby leading them to click on malicious links, provide sensitive information, or even make payments in accordance with the attacker’s request or instructions. Phishing attacks like these are particularly dangerous and can have a serious impact on the ongoing business of a corporation because they exploit the trust and familiarity established in the original email chain. Effective Mitigation Approaches Mechanisms for addressing the aftermath of a crisis provide important recourse to affected organizations, but effective compliance mechanisms can minimize the risk of such crises ever occurring. Companies should therefore prioritize preventative measures and implementation of effective crisis management schemes. Various legal
Read More
June 11, 2025
Myanmar’s Ministry of Commerce has established new regulatory measures for importing electric vehicles (EVs) as part of a pilot project running from January 2025 to March 31, 2026, while the Ministry of Planning and Finance has reduced customs duty rates for fuel-powered vehicles manufactured domestically under semi-knocked down (SKD) and completely knocked down (CKD) systems, effective June 1, 2025, to May 31, 2026. Importation of EVs On May 29, 2025, Myanmar’s Ministry of Commerce (MOC) issued an announcement regarding the importation of EVs from abroad as part of its pilot project, detailed in MOC Notification No. 40/2025. The MOC notification establishes the following regulatory measures to support the development of EVs and related businesses: Approval must be obtained from the National-Level Steering Committee for the Development of Electric Vehicles and Related Enterprises. A registration certificate for an EV sales showroom must be secured. Vehicles must be imported in accordance with the permitted number and standards defined by the National-Level Steering Committee for the Development of Electric Vehicles and Related Enterprises. The importing company must provide necessary arrangements for warranties on imported EVs, spare parts, and after-sales services. For companies wishing to open a sales showroom, the following requirements apply: The company must be a registered national or joint venture entity with the Directorate of Investment and Company Administration. The company must be officially appointed as a distributorship or dealership by the original company or regional office for each brand. A permit from the respective state or regional government and a business license from the respective Municipal Committee must be obtained. The company must provide evidence of tax clearance issued by the Internal Revenue Department. Standards for the showroom, building, and warehouse, as issued periodically by the MOC, must be adhered to, including: Compound area: 10,000 square feet (the total
Read More
June 11, 2025
Thailand’s tax dispute resolution framework has undergone a significant transformation with the enactment of the Act Establishing the Tax Court and the Procedure for Tax Cases (No. 3) B.E. 2568. Published in the Government Gazette on May 27, 2025, the amended act will come into force on November 24, 2025, which is 180 days after its publication. The amended act marks a pivotal shift in the jurisdiction and procedures of the Tax Court, most notably by empowering it to adjudicate certain criminal tax cases for the first time. Background and Rationale The Tax Court was originally established in 1985 as a specialized forum to handle complex tax disputes, including those related to revenue, customs, and excise taxes. The creation of the Tax Court recognized the need for judicial expertise in tax law, given its technical and specialized nature. The latest amendment is designed to address procedural inefficiencies, modernize court processes, and align Thailand’s tax litigation system with international standards. The reform demonstrates Thailand’s commitment to enhancing the efficiency, transparency, and fairness of its tax dispute resolution mechanisms. Key Amendments and Provisions Six of the key changes in the amendment are highlighted below. Expansion of jurisdiction to criminal tax cases. The most significant change is the extension of the Tax Court’s jurisdiction to include criminal offenses under the Revenue Code, customs law, excise tax law, and other tax-related laws that may be specified by royal decree. New sections in the act explicitly grant the Tax Court authority to hear and decide criminal tax cases, so individuals and entities accused of criminal tax evasion or other tax-related crimes will now have their cases heard by judges with specialized tax expertise. The law also clarifies the Tax Court’s jurisdiction when a single act constitutes multiple offenses (some tax-related, some not) or when
Read More