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November 12, 2025

Thailand to Remove Import Duty Exemption for Low-Value Goods

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Thailand’s Customs Department has announced the cancellation of the longstanding de minimis exemption, which waives import duties on goods valued at THB 1,500 or less, as of January 1, 2026. This policy shift will directly impact e-commerce, logistics, and retail sectors, and will have wide-ranging implications for any company involved in cross-border trade with Thailand.

Background

Under current regulations, imported goods with a customs value (cost, insurance, and freight, or “CIF”) of THB 1,500 or less are exempt from import duties. This has been a cornerstone of the cross-border e-commerce model, allowing for the duty-free import of millions of small parcels.

Under the new policy effective January 1, 2026, all imported goods, regardless of value, will be subject to assessment for import duties upon entry into Thailand. The stated rationale for this change is to create fair competition for Thai small and medium-sized enterprises (SMEs), which must pay VAT and other costs on their goods, putting them at a price disadvantage against foreign sellers who utilize the de minimis loophole.

Business Implications

This policy change will create new costs, compliance burdens, and operational challenges.

  • For foreign e-commerce sellers and platforms: The most direct impact will be the addition of import duties to low-value items. Assuming the costs are passed on to the consumer, the higher prices and potentially more complex or slower customs clearance processes could lead to increased cart abandonment and reduced consumer demand. Businesses should review their pricing models and develop a clear strategy for calculating, declaring, and paying these new duties.
  • For logistics providers and customs brokers: The administrative burden will be considerable. Carriers that previously handled millions of nondutiable parcels will now be required to process them for duty assessment and collection. This may necessitate new IT systems and streamlined processes to avoid delays at customs. The mechanism for duty collection (e.g., paid by carrier, paid by recipient) will be a critical operational detail.
  • For domestic SMEs and retailers: The removal of the de minimis exemption is expected to bring increased competitiveness by narrowing the price gap between goods from Thai businesses and those from foreign competitors.

Outlook

The Customs Department has not yet released detailed regulations or procedural guidelines for how these duties will be assessed and collected. While waiting for further guidance on these matters, businesses should:

  • Assess the expected impact of the policy change on product pricing and profit margins, using standard import duties based on HS (harmonized system) codes.
  • Consult with their customs brokers and logistics providers to understand their preparedness and plans for managing these new procedures.
  • Ensure their systems for product classification (HS codes) and valuation are accurate, as these will now be critical for every shipment, not just those over THB 1,500.
  • Monitor official announcements from the Ministry of Finance and Customs Department for regulatory implementation of the announced removal of the de minimis exemption.

This policy marks a fundamental shift away from duty-free low-value cross-border e-commerce in Thailand. Businesses that prepare for the new cost and compliance conditions will be best positioned to navigate the transition successfully.

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