Transcript of the above video: 

I went ahead and we made a new thumbnail for this video to discuss import export matters specifically. I think more and more as time goes on, I think this is going to be something we're going to talk about a fair bit on this channel especially as it pertains to Customs duties. I could have put this under the category of tax but as it occurs in an import context and I think we are going to see more of this is time goes on I felt like it was probably best to just include it in its own category.

I thought of making this video after reading a recent article from the Bangkok Post, bangkokpost.com. This also came to my attention via a viewer, so tip of the hat to you sir. The article is titled: Thailand to impose 10% duty on low-cost imports to aid SMEs. Quoting directly: "Thailand will start collecting 10% custom duties on low-cost imports previously exempt from tax as part of a government plan to protect local small and medium-sized businesses, Finance Minister Ekniti Nithanprapas said on Friday." Quoting further: "Currently imported goods with a value of 1,500 baht or less are exempt from import duties, while those of higher value are subject to different rates of tax based on the type of product. Mr. Ekniti said the new measure, which will come into effect on Jan 1 next year, will help the Thai manufacturing sector, and the Government is also seeking cooperation from the operators of online commercial platforms to help collect the tax." Yeah look, this is pretty complex. I'm never one that is really much in favour of adding taxes but as you know, look Thailand's market has been flooded with really cheap manufactured goods from various other jurisdictions, although many people are quick to point out China is one of them which they are a big one, don't get me wrong, but there are other places from which Thailand does receive imports. 

That being said, yeah this is probably pretty big news especially for those, in terms of cost of living and things like that over here in Thailand, this will have an impact; exactly how it plays out remains to be seen. Now what I find kind of interesting in all of this is it's all kind of part and parcel with the overall reconfiguration if you will of various trade ties, various relationships with regard to taxation. As I have discussed in other videos, I have my own issues with the so-called OECD (Office for Economic Cooperation and Development) which is trying to put in all kinds of new tax policy, as well as banking policy imposing it on Thailand; again, this is all problematic for a variety of different reasons. 

That being said, at the end of the day there is something of a benefit that may accrue to the Thai manufacturing sector insofar as these duties being imposed; if anything you could call this a tariff albeit a relatively small one compared to the numbers we have seen Mr. Trump throwing around and it seems to be targeted primarily at China, rather than any other jurisdiction, at least, again not purely because it is an across-the-board policy, but I expect it will have a disproportionate impact on Chinese imports. That said, again it remains to be seen exactly how this is going to play out, so we will certainly be keeping you updated on this channel as the situation evolves.