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​ 

March 13, 2026
For decades, intellectual property rights holders seeking to eliminate counterfeit goods from the Thai market have relied primarily on criminal raid actions to seize infringing products and hold infringers accountable. The deterrent value of this approach is typically threefold: imposing criminal liability on infringers, removing counterfeit goods from circulation, and subjecting violators to imprisonment and fines. However, these outcomes often fall short of fulfilling brand owners’ broader objectives. In many cases, those prosecuted are merely staff or intermediaries rather than the principals orchestrating the infringing operations. Moreover, any fines imposed are remitted to the Thai government—not to the rights holders who have suffered commercial harm and invested substantial resources in investigation and coordination with law enforcement authorities. As in other jurisdictions worldwide, rights holders seeking monetary compensation for IP infringement in Thailand have traditionally pursued separate civil litigation. Before initiating such proceedings, a brand owner must gather sufficient evidence to establish both the infringement and the resulting damages. Notably, Thai law does not recognize punitive damages; courts award only actual damages proven by the claimant. In the absence of seized infringing goods, the damages awarded in such cases are typically minimal. This all leaves rights holders with limited recourse despite possibly having suffered significant commercial injury. In 2005, Thailand amended its Criminal Procedure Code to introduce Section 44/1, which enables rights holders to claim damages within criminal proceedings at the Intellectual Property and International Trade Court prior to the evidentiary hearing. In practice, this mechanism allows an injured party to submit a petition for civil damages directly within the criminal case initiated by the public prosecutor. Historically, rights holders in Thailand have been reluctant to use Section 44/1 because the compensation awarded by courts was often insufficient to justify the effort. However, recent years have seen a notable shift
Read More
March 9, 2026
Over the past several years, numerous automobile manufacturers have brought electric vehicles (EVs) to the market and received positive feedback from consumers in Thailand and around the world. EVs have gained popularity due to their lower maintenance costs, reduced energy expenses, and environmental benefits. However, reports have emerged of EVs causing problems such as battery fires, autopilot malfunctions leading to accidents, and safety systems such as brakes engaging automatically under inappropriate conditions. Even when these situations do not cause injury to drivers or passengers, they raise significant concerns for EV manufacturers, importers, and sellers operating in Thailand. These problems may seriously impact businesses if the products are identified as unsafe under Thailand’s Product Liability Act (PLA), officially known as the Liability for Damages Arising from Unsafe Products Act. Under this law, authorities or courts can order business operators to recall products from the market or prohibit their export, import, or sale. To manage and mitigate the risk of being found liable for damages due to an unsafe product under the PLA, EV business operators should be aware of the scope of the law. Potentially Liable Parties The PLA identifies several types of entrepreneurs and business operators—both individuals and entities—as “potentially liable parties” (PLPs) who may be held liable under the law. In the EV context, this could include vehicle manufacturers, battery suppliers, software developers whose systems are integrated into the vehicle, and local importers or distributors. Specifically, the PLA covers: Manufacturers or hirers Importers Sellers of goods for which the manufacturer, hirer, or importer cannot be identified Any other party who uses the name, trade name, trademark, or statements associated with the alleged unsafe products, or acts in a manner that causes them to be perceived as a manufacturer, hirer, or importer Definition of “Product” and “Unsafe Product” The
Read More
March 5, 2026
Amid increasing financial globalization, Vietnam’s establishment of an International Financial Center (IFC) represents a strategic initiative to attract high-quality foreign investment and enhance the country’s position in the global financial system. In support of this objective, a Specialized Court was introduced under Resolution No. 222/2025/QH15 as a dedicated dispute resolution mechanism within the IFC framework. The Specialized Court at the IFC was subsequently operationalized by Law on the Specialized Court No. 150/2025/QH15, effective from January 1, 2026. Organizational Structure of the Specialized Court The Specialized Court at the IFC is a court within the system of the People’s Courts, organized and operating in accordance with the Law on the Specialized Court, and vested with jurisdiction to adjudicate and resolve cases at the IFC. The Specialized Court is located in Ho Chi Minh City and comprises (i) a Court of First Instance; (ii) a Court of Appeal, and (iii) a supporting apparatus. Jurisdiction of the Specialized Court The jurisdiction of the Specialized Court at the IFC is strictly defined based on both (i) the subject matter of the cases and (ii) the membership status of the parties involved. Specifically, the Specialized Court has jurisdiction over (except for cases involving public interests or the interests of the state) the following: Disputes arising from investment and business activities. Requests for recognition and enforcement in Vietnam of judgments and decisions of foreign courts and foreign arbitral awards. Requests related to dispute resolution by arbitration. Other disputes directly related to investment and business activities (to be specified by the Supreme People’s Court). Additionally, at least one party in the case must be a member of the IFC. The IFC’s membership status is established through registration, recognition as a member, or the grant of a license for establishment and operation within the IFC. In the
Read More
February 27, 2026
On January 26, 2026, Vietnam’s Ministry of Finance issued Circular No. 06/2026/TT-BTC (Circular 06), amending and supplementing Circular No. 13/2015/TT-BTC, which provides guidance on dossiers and procedures for customs recordal and customs supervision in relation to intellectual property rights (IPR). Circular 06 has an effective date of March 1, 2026. Some notable points of Circular 06 include the following: Simplified Documentation for Customs Recordal Applications Circular 06 reduces some documentary requirements for IPR owners: A power of attorney is no longer required to be legalized. Applicants are no longer required to submit title or registration certificates if such documents are issued in digital form. In such cases, it is sufficient to declare comprehensive information on the relevant IPR, enabling customs authorities to verify the information through publicly accessible databases. In practice, this amendment is particularly beneficial for international trademark registrations designating Vietnam. IPR owners may no longer need to obtain a confirmation letter from the Intellectual Property Office of Vietnam regarding the validity of a trademark registration in Vietnam. Instead, they may rely on registration status information available from the World Intellectual Property Organization (WIPO) database, reflecting that the international registration has been granted protection in Vietnam. Clearer Mechanism for Ex Officio Suspension of Suspected Infringing Goods Although ex officio suspension has been referenced in earlier regulations, Circular 06 provides clearer guidance on the circumstances and procedures under which customs may proactively suspend customs procedures for consignments suspected of being counterfeit or pirated goods. Accordingly, customs authorities may initiate the suspension of clearance without waiting for a formal request from IPR owners. Enhanced Supervision of Imported/Exported Goods in E-Commerce Circular 06 also supplements provisions on the inspection of imported and exported goods transacted through e-commerce channels. Customs authorities may apply risk management measures to assess goods traded via e-commerce
Read More