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22 April 2025

Thailand Strengthens Measures Against Product Misappropriation

Prime Minister emphasizes collaboration to enhance Thai exports and credibility

On April 22, 2025, Ms. Phetongtharn Shinawatra, the Prime Minister of Thailand, convened a crucial meeting with the Ministry of Commerce, the Customs Department, the Thai Chamber of Commerce, and the Thai National Shippers' Council. This meeting aimed to address pressing issues related to the standardization of Thai products and the issuance of Certificates of Origin (C/O) for exported goods. The goal is to enhance the credibility of Thai products and bolster the export capabilities of Thai entrepreneurs.

During the meeting, the Prime Minister emphasized the importance of cooperation across all sectors to tackle challenges and improve the quality of Thai goods for export. She stated, "I believe that if we implement stringent checks on the origin of products, the volume of product misappropriation will significantly decrease within 90 days. This will open up opportunities for Thai entrepreneurs, including SMEs, to operate more effectively and increase the export of Thai products and raw materials, ultimately enhancing Thailand's trade value."

In the short term, the Department of International Trade Promotion (DITP) will take the lead in discussions with the U.S. Customs and Border Protection (CBP) to establish new guidelines for issuing certificates of origin. They will also monitor the misappropriation of 65 specific product categories, primarily industrial goods, to ensure more rigorous inspection processes.

Mr. Wuthikai Leeviraphan, the Permanent Secretary of the Ministry of Commerce, highlighted that the export of goods to the United States requires a Certificate of Origin Form C/O. Currently, three agencies are authorized to issue this form: the DITP, the Thai Chamber of Commerce, and the Thai National Shippers' Council. However, concerns have arisen regarding the importation of goods from foreign countries into Thailand, which are then exported to the U.S. using Thai certificates, raising alarms in the U.S.

To address these concerns, the meeting concluded with several key action points. The DITP will be the sole agency responsible for issuing the Certificate of Origin Form C/O for the monitored products destined for the U.S. They will also improve their inspection procedures before issuing certificates, including detailed factory inspections and stringent checks on export documentation for high-risk products. This collaboration aims to build trust with U.S. customs officials, who will provide training to Thai staff on inspection protocols.

The Prime Minister urged all relevant agencies, both public and private, to work together to resolve these issues within the next 90 days and to develop long-term strategies to prevent the misappropriation of Thai goods being exported to other countries. She noted that existing laws may be outdated and not adequately cover current irregularities.

Furthermore, Mr. Wuthikai stated that the Ministry of Commerce is committed to exploring legal measures or regulations to prosecute companies that engage in product misappropriation. This will involve integration with various agencies, and after a period of implementation, there will be a review of necessary legal amendments.

While the Prime Minister underscored the importance of these measures, she also stressed that they must not hinder the facilitation of Thai exporters. It is crucial that exporters who comply with regulations continue to have efficient access to services and the issuance of certificates.

This initiative comes at a time when Thai exporters are facing various challenges, including stricter inspections from foreign markets. The Prime Minister's proactive approach aims to enhance the competitiveness of Thai products in the global market, particularly for small and medium-sized enterprises (SMEs).

As Thailand moves forward, the government is keen on ensuring that the quality of Thai goods meets international standards, thereby increasing their marketability abroad. This focus on quality is expected to not only benefit exporters but also strengthen Thailand's overall trade value.

In conclusion, the Thai government is taking significant steps to combat product misappropriation and enhance the credibility of its exports. By fostering collaboration between various sectors and implementing stringent measures, Thailand aims to improve its export landscape and support its entrepreneurs in navigating the complexities of international trade.