WT/TPR/M/400/Add.1
25 March 2021
(21-2442) Page: 1/320
Trade Policy Review Body Original: English/anglais/inglés 24 and 26 November 2020 French/français/francés Spanish/espagnol/español
TRADE POLICY REVIEW
THAILAND MINUTES OF THE MEETING Addendum Chairperson: H.E. Mr. Harald Aspelund (Iceland)
This document contains the advance written questions and additional questions by WTO Members, and replies provided by Thailand.1
Organe d'examen des politiques commerciales 24 et 26 novembre 2020
EXAMEN DES POLITIQUES COMMERCIALES
THAÏLANDE COMPTE RENDU DE LA RÉUNION Addendum Président: S.E. M. Harald Aspelund (Islande)
Le présent document contient les questions écrites communiquées à l'avance par les Membres de l'OMC, leurs questions additionnelles, et les réponses fournies par la Thaïlande.1
Órgano de Examen de las Políticas Comerciales 24 y 26 de noviembre de 2020
EXAMEN DE LAS POLÍTICAS COMERCIALES
TAILANDIA ACTA DE LA REUNIÓN Addendum Presidente: Excmo. Sr. Harald Aspelund (Islandia)
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y las preguntas adicionales de los Miembros de la OMC, así como las respuestas facilitadas por la Tailandia.1
1 In English only./En anglais seulement./En inglés solamente.
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Contents AUSTRALIA ...... 3 BRAZIL ...... 16 BRAZIL – 1ST ADDITIONAL QUESTIONS ...... 18 BRAZIL – 2ND ADDITIONAL QUESTIONS ...... 21 CANADA ...... 28 CHILE ...... 45 CHINA ...... 56 CHINA - FOLLOW-UP QUESTIONS ...... 77 COLOMBIA ...... 81 COLOMBIA – 1ST ADDITIONAL QUESTIONS ...... 93 COLOMBIA – 2ND ADDITIONAL QUESTIONS ...... 96 ECUADOR ...... 100 EUROPEAN UNION ...... 106 HONG KONG, CHINA ...... 126 INDIA ...... 130 INDIA – ADDITIONAL QUESTIONS ...... 147 INDONESIA ...... 153 ISRAEL ...... 158 JAPAN ...... 161 REPUBLIC OF KOREA ...... 167 MALAYSIA ...... 177 MEXICO ...... 185 MYANMAR ...... 193 NEW ZEALAND ...... 196 NORWAY ...... 201 PERU ...... 203 PHILIPPINES ...... 206 RUSSIAN FEDERATION ...... 232 SINGAPORE ...... 247 SWITZERLAND ...... 250 CHINESE TAIPEI ...... 263 TURKEY ...... 272 TURKEY – ADDITIONAL QUESTIONS ...... 275 UKRAINE ...... 280 UNITED KINGDOM ...... 294 UNITED KINGDOM – FOLLOW-UP QUESTIONS ...... 303 UNITED STATES ...... 304
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AUSTRALIA
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
SUMMARY
Page 10, Paragraph 15
The report states that, since 2015, Thailand has developed 743 new standards, of which 32 are mandatory. The share of national standards that are identical or similar to international standards is 37.4%.
Question 1
What measures is Thailand taking to increase awareness, recognition and alignment with international standards?
Answer
The Thai Industrial Standards Institute (TISI), as the national standards body, is a full member of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) in order to participate in the development of international standards and to ensure conformity and harmonization between Thai national standards and international standards. 80 national mirror committees participate in ISO and IEC standard development and a number of international standards have been adopted as national standards.
Before regulating voluntary standard as a compulsory standard, public consultation will be held to welcome comments from stakeholders.
2 TRADE AND INVESTMENT REGIMES
2.4 Investment Regime
Page 45, Paragraph 2.44
The report states that the authorities' objective is to promote the role of Thailand as an international business hub. The number of licence applications approved annually during the period under review was: 404 in 2015; 352 in 2016; 270 in 2017; 272 in 2018; and 217 in 2019.
Questions 2 and 3
Can Thailand provide any data on the total number of total applications in those years?
Is a breakdown available for applications by sector?
Answers
Statistics of numbers of total application are not available. However, the numbers of licenses and certificates issued under the FBA are available at https://www.dbd.go.th/dbdweb_en/more_news.php?cid=254.
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3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.4.2 Import licensing
Page 59, Paragraph 3.45
Table 3.8 Products subject to other import requirements, 2020 lists measures for fresh oranges, shallots and swine offal requiring Importers must be registered with the Department of Foreign Trade (DFT) as importers of fresh oranges, and must report the import, possession, export, storage, disposal and balance of their products to the DFT every month;
Question 4
How do these measures protect public health and how are they administered?
Answer
The importers of fresh oranges, shallot and swine offal must be registered as importers of fresh orange, shallots or swine offal, report the importation and have to declare Phytosanitary Certificate or Health Certificate for the importation in order to certify that the import products are safe and not harm people/public health.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.5 Anti-dumping, countervailing, and safeguard measures
3.1.5.1 Anti-dumping and countervailing measures
Page 61, Paragraph 3.47
The report states that legislation has been amended to clarify issues related to anti-circumvention.
Question 5
Could Thailand please outline the factors that are used when assessing if behaviour is circumventing measures currently in place, and if they have changed as a result of the fore-mentioned legislative amendments? Additionally, what was the rationale for this legislative clarification?
Answer
The amendment has added a new chapter relating to Anti-Circumvention. To investigate the case, there are three factors that need to be considered:
1) There is a change in pattern of trade which stems from a practice, process or work for which there is insufficient due cause or economic justification other than the imposition of the duty.
2) The remedial effects of the duty are being undermined in terms of the prices and/or quantities.
3) There is evidence of dumping in relation to the normal values previously established or evidence of subsidy.
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Page 62, Paragraph 3.51
The report discusses the challenges to the determinations of the Committee on Dumping and Subsidies for a variety of reasons.
Question 6
The last sentence in Paragraph 3.51 suggests that the decision to impose measures also takes into account public interest considerations, if this interpretation is correct, could Thailand please outline what these public interest considerations are, and how they are assessed?
Answer
A determination to impose any measures shall include the consideration on the interests of the domestic industry, consumer and public interests which differ in each case.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.3 Sanitary and phytosanitary requirements
Page 85, Paragraph 3.152
The report noted the relevant legislation for Thailand's sanitary and phytosanitary regimes includes Plant Quarantine Import Regulations on the prevention of the invasion of plant pests and diseases from outside the country.
Question 7
Could Thailand provide a summary of how it investigates and reports to trading partners on detections of emergency plant pests?
Answer
The Department of Agriculture (DOA), as the National Plant Protection Organization (NPPO) of Thailand, is responsible for the inspection of import plants and plant products come into and across plant quarantine stations. This action has been performed by qualified plant quarantine inspectors according to the procedure. If a quarantine pest or any harmful organisms were intercepted, an appropriate measure will be selected to reduce pest risks such as destruction, treatment or return to its origin. Moreover, the notification of non-compliance, as complied with ISPM13, including the measure that has been taken will be informed to the exporting countries.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.3 Sanitary and phytosanitary requirements
Page 85, Paragraph 3.153
The report notes the National Bureau of Agricultural Commodity and Food Standards (ACFS) under the Ministry of Agriculture and Cooperatives, is responsible for setting standards for agricultural systems, commodity and food items, and accrediting certification bodies and inspection bodies of agricultural commodities and foods; food standard controls; and promoting compliance with standards on farms and in food establishments.
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Question 8
With the travel restrictions in place due to the COVID-19 pandemic, could Thailand outline alternatives to in-country inspections and audits of overseas food manufacturing facilities required to assure imported food meets Thailand's standards?
Answer
During COVID-19 pandemic, ACFS has set up remote assessment or virtual site assessment to certify certification bodies (CBs) under responsibility. By applied technology such as recording VDO, interviewing staff, and collecting document, the remote assessment can do traceability and ensure that complied with an original on-site assessment because the virtual site assessment is conducted base on IAF MD4 – IAF Mandatory Document for The Use of Information and Communication Technology for Auditing/Assessment Purposes.
In case the importation of product under mandatory standard, the inspection is complying with the requirement clarified in the mandatory standard.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.3 Sanitary and phytosanitary requirements
Page 86, Paragraph 3.154
The report notes 'New SPS regulations are based on an analysis of the risks involved, and draft regulations are subject to a public hearing and are notified to the WTO Members for comment before being approved by the responsible authority.'
Question 9
Could Thailand provide further assurance it will notify WTO members of draft regulations and make risk assessments available as part of consultations, before regulations are approved by the responsible authority.
Answer
According to Article 7 "Transparency" regulated that members shall notify changes in their sanitary or phytosanitary measures and shall provide information on their sanitary or phytosanitary measures in accordance with the provisions of Annex B of the Agreement on the Application of Sanitary and Phytosanitary Measures, Thailand usually notifies WTO members of draft regulations and proceeds the procedure based on such provision.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.3 Sanitary and phytosanitary requirements
Page 88, Paragraph 3.164
Maximum residue limits (MRLs) for food and agricultural products are regulated by the FDA under the Ministry of Public Health's notifications (No. 387 B.E. 2560 (2017) on Food Containing Pesticides Residues99, and No. 393 B.E 2561 (2018) on Food Containing Pesticide Residues (No. 2)100). These notifications are mandatory standards for both domestic and imported produce and products. Additionally, standards (voluntary) for MRLs on crops and agricultural commodities were also established by the Ministry of Agriculture and Cooperatives (MOAC):
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• the Agricultural Standard on Pesticide Residues: Maximum Residue Limits (MRLs: TAS 9002-2016); and
• the Agricultural Standard on Pesticide Residues: Extraneous Maximum Residue Limits (EMRLs: TAS 9003-2004).
Question 10
Could Thailand share its method of risk assessment underpinning reclassification of certain pesticides as type 4 hazardous substances resulting in zero tolerance for residue levels in food and agriculture products for human consumption, including imports?
Answer
The classification of agricultural hazardous substances to be hazardous substance type 4 is based on scientific evidences of health human risk by using and consuming the residue of hazardous substances as well as the negative effect on environment by using the hazardous substances. For the level of residues on food and agricultural product, Thailand based on national treatment has equality procedure for both domestic producers and import products.
The National Hazardous Committee considered all information proposed by members and experts to make appropriate decision based on Thailand's context and philosophy that human health cannot be compromised.
Examples of heal effects are as follows:
1) Epidemiological study found that high prevalence of necrotising fasciitis among farmers in Nong Bua Lumphu, which is associated with the intensive use of paraquat in sugarcane plantations in the area;
2) Increasing trend of incident reports of death from paraquat use;
3) There is no antidote (specific) to paraquat; paraquat has acute toxicity, etc.
Therefore, Thailand enacted the Notification of the Ministry of Industry on List of Hazardous Substances (No. 6) B.E. 2563 (2020), Chlorpyrifos, chlorphyrifos-methyl, paraquat, paraquat dichloride, paraquat [bis (methyl sulfate)] or paraquat methosulfate are specified as hazardous substance type 4, hence, the production, import, export or having in possession is prohibited since 1 June 2020.
In order to comply with the Notification of the Ministry of Industry, the Ministry of Public Health has proposed Notification of the Ministry of Public Health regarding Food Containing Pesticide Residues (Pesticide Residues in Food) (No. 3).
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.6 Competition policy and price regulation
3.3.6.3 Enforcement
Page 100, Paragraph 3.211
The report discusses new administrative penalties and recent TCC findings.
Among them, 34 claims were related to unfair trade practices, 3 to restrictive agreements, 7 to abuse of dominant position, and 1 was in the area of mergers. The TCC concluded 27 cases and found violation in one case.
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Question 11
Australia notes the Government is working to raise public awareness of competition law. How are these efforts progressing, and what is the Government's assessment of the public awareness of competition law currently?
Answer
Thailand has developed competition law to promote transparency and fair competition and established Office of Trade Competition Commissions (OTCC) as the authorised authority to enforce the competition law. Moreover, the Trade Competition Commission has been developing a programme to build the primary target (Business Operator) awareness on Trade Competition Act since the beginning of our organisation until now.
In addition, the OTCC measures number of followers and feedbacks on several platforms, such as Facebook, OTCC website, and news websites, after every OTCC event are held or news related to our organisation are published. Number of our followers has been increased from time to time until now. However, the OTCC still has a limitation of resources, as our organisation is growing and the OTCC does not have enough workforce to develop and distribute knowledge on Trade Competition Act. Therefore, our long-term plan is to cooperate with major universities in all regions of Thailand who provide a course involving Trade Competition Act, to be one of OTCC main channel to reach public awareness and communicate to business operators or people who might be interested in the Trade Competition Act.
Question 12
Does Thailand view any particular sectors as a priority sectors?
Answer
We seemingly have priority sectors. In details, we identified the priority products which may have anti-competitive conducts in their markets. Please see the list below:
No. Product/Service name No. Product/Service name 1 Product – Seeds/Inputs (maize) 2 Service – Online Travel Agency (OTA) 3 Service – Fresh fruit trading 4 Product – Ice production 5 Product – Bottled tea (beverage) 6 Product – Feed mills 7 Product – Functional drinks 8 Product – UHT milk 9 Product – LED lights 10 Product – Diaper for adults 11 Product – Sanitary ware 12 Service – e-Market places (e-Commerce) 13 Service – Food delivery platforms 14 Product – Instant noodle 15 Product – Seasoning powder (MSG) 16 Product – Chemical fertilizer 17 Product – Motor bicycles 18 Service – Medical services (Hospital)
4 TRADE POLICIES BY SECTOR
4.1 Agriculture
4.1.3 Agricultural policies
4.1.3.1 Legal, institutional, and policy framework
Page 115, Paragraph 4.9
The report outlines MOAC target to achieve balanced and sustainable management of agricultural resources and the environment, including water resource management, conservation and recovery of agricultural resources, agricultural area management, adaptation to climate change, and international cooperation.
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Question 13
Could Thailand outline the principles of its water allocation policy, in particular for agricultural water use?
Answer
Royal Irrigation Department (RID) has the water management strategies and we have put them in order of priority for the following water usage activities:
1) Water allocation for consumption
2) Water allocation for preservation of ecology
3) Water reserve for usage in the beginning of rainy season for consumption and preservation of ecology during May to June
4) Water allocation for agriculture (through participatory irrigation management and knowledge sharing basis)
5) Water allocation for industry.
Question 14
Could Thailand provide more information on what is considered balanced and sustainable land management?
Answer
According to the National Land Policy Committee Act B.E. 2562 (2019) under Section 10 stated that the National Land Policy Committee (NLPC) shall have responsibility and authority to administrate the national land and soil resources management. The NLPC Secretariat under Office of Natural Resources and Environmental Policy and Planning (ONEP) has launched Policy and Plan for managing Nation's Land and Soil Resources (B.E. 2560-2579) (2017-2036) which the main long-term national policy framework.
The objective of the Policy and Plan is to assign the direction of national land and soil resources management to be united, integrated, and non-overlapping. Because lands and soil resources are basic factors of nation's production in agriculture, industry, and services, for nation's socio-economic development, therefore lands and soil resources shall be managed most efficiently for the utmost benefit, and to protect the rest for natural sustainability and balance.
The Policy and Plan covers important issues of land and land resource problem solving under the principle to balance between mutual benefit and community benefit through participatory process. The Policy and Plan consists of four main strategies as follows:
Strategy 1: Nurture of natural balance, sustainable conservation, and development of lands and soil resources
Strategy 2: Utilisation of lands and soil resources for maximum benefits
Strategy 3: Fair and inclusive land allocation for disadvantaged people
Strategy 4: Management of lands and soil resource.
Question 15
Can Thailand provide information on whether the management and reporting of emissions is to feature in their agriculture strategy to adapt to climate change?
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Answer
Office of Natural Resources and Environmental Policy and Planning (ONEP), as Thailand's national focal point for UNFCCC, is responsible for the preparation of emissions report, officially called national greenhouse gas (GHG) inventory, as part of the National Communication (NC) and Biennial Update Report (BUR) submitted to UNFCCC. The inventory has been utilised by policymakers to develop appropriate GHG emissions management or mitigation policy. In terms of adaptation to climate change, ONEP has developed a national adaptation plan (NAP) which address priority sectors impacted by climate change including agricultural and food security.
Question 16
Can Thailand provide more information how it plans to adapt to climate change as part of the MOAC target to achieve balanced and sustainable management of agricultural resources?
Answer
The current government has the idea of developing the national economy by using an economic model called the "BCG Model", which consists of development of 3 economies: Bio Economy, Circular Economy and Green Economy.
Bio economy is an economic development model that focuses on the use of Biological resources that are worthwhile while maintaining the environmental balance. Resources that are produced in the Bio economy system must be renewable, reduce dependence on fossils fuel and reduce greenhouse gas emissions. Circular economy refers to an economy in which all resources in a production system can be restored and recycled. It focuses on maintaining product value while promotes reuse and generates the lowest amount of waste. Also, the Circular economy pay more attention to the management of production and consumption waste by bringing raw materials that have been manufactured and consumed back into the new production process. Green Economy is an economic development model that focuses on achieving balanced development in three areas: economic, social and environmental aspects, and emphasizes balanced use of resources. This economic development will eventually lead to sustainability and international competitiveness.
In order to drive Thailand forward in a concrete way, all 3 economies must develop at the same time. The BCG model is consistent with the Sustainable Development Goals (SDGs) and the Sufficiency Economy Philosophy (SEP) principle, which is the driving force of the country. It is an economic development model that focuses on balancing economic growth and sustainability of natural resources. By bringing knowledge and advancement of technology and innovation to enhance the internal strength of Thailand, namely biodiversity and abundant agricultural products, along with adjusting the production system to the cost-effective use of resources. The development of the BCG economy consists of combination of two main concepts (the biological economy and the circular economy) and make it in line with the concept of green economy. The Ministry of Agriculture and Cooperatives has studied, researched and conveyed environmentally friendly methods to farmer to reduce the destruction of quality of environment and production resources. For example: Preserve soil microorganisms and the fertility of farmland by not burning stubble in the rice fields; promote cutting fresh sugarcane instead of burning during harvesting by providing replacement machinery or setting higher purchasing price for non-incineration sugarcane; and Alternative Wetting and Drying or AWD (Grow rice with less water).
The BCG Model should be linked to the area-based approach in line with the provincial and regional agricultural development plans by using area-based biodiversity and the diversity of cultures as a driving force. Zoning by agri map will be used as a tool for finding potential areas to reduce unnecessary use of inputs, fertilizer, and water, to create a balanced and sustainable management of natural resources. In addition, in the future, BCG should be driven digitally, by using Big Data and AI platforms, to bridge and leverage the BCG's value chain. Science, technology and innovation will be used to support and upgrade Thai agriculture from traditional agriculture to precision agricultural system with the principles of market driven production to increase the efficiency of resource utilization.
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Question 17
Can Thailand provide more detail on the types of/or approach to innovation and technology to build the capacity of farmers and smart farming?
Answer
Ministry of Agriculture and Cooperatives pay more attention on agricultural technology policy 4.0 to adapt to new technology and innovation. Therefore, Agri-tech and innovation Center (AIC) were established in 77 provinces nationwide in order to develop the competitiveness of the agricultural sector through the combination of local wisdom and technology.
AIC was established with a purpose to develop competitiveness in the agricultural sector through technology and innovation, to support and promote agricultural technology Innovation Including agricultural machinery, to be a farmer incubator training center and supporting Smart Farmer including Young Smart Farmer in each province. AIC pushing forward technology and innovation through research, development, investment, processing and commercial management. AIC is also a center for farmer service that brings together knowledge on agricultural technology, innovation, local wisdom, and agricultural philosophers. AIC is an integrated work of 6 parties, namely the Ministry of Agriculture and Cooperatives, Ministry of Commerce, Ministry of Industry, Farmers, Academic, and Private sectors. AIC has structure of 1 province, 1 center, managed by provincial authority and located at the chosen university. AIC will focus on management in collaborative farm, and attracting young smart farmers as a driving force to join in enhancing knowledge in e-commerce, story and packaging creation, including building a good network step into the age of Agriculture 4.0. By combining the knowledge of local wisdom with technological innovation, research units at the university level, to create a new way of developing agriculture both in terms of farmers' traditional knowledge, technology and innovation to help improve quality, increasing productivity, and reducing costs of production.
The example of work of AIC:
1) E-Commerce O2O (offline to online market): focus on sending agricultural products from normal markets or local markets to markets outside the area through an online communication system and delivery service.
2) Start Up/UniconX: AIC connects Farm Service to drive Start up/Uniconx (new businesses).
3) AIC Channel: set up a communication channel in the province between the AIC Center and farmers to update information and technology.
4 TRADE POLICIES BY SECTOR
4.1 Agriculture
4.1.3 Agricultural policies
4.1.3.2 Border measures
Page 117, Paragraph 4.18
The reports notes a certificate from the Office of the Cane and Sugar Board under the Ministry of Industry is required to import cane or sugar.
Question 18
Could Thailand outline the process for obtaining a certificate from the Office of the Cane and Sugar Board to import sugar?
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Answer
The importation of sugar products under the Thailand-Australia Free Trade Agreement (TAFTA) is in the process of revising the draft regulations, procedures, and conditions for sugar import.
4 TRADE POLICIES BY SECTOR
4.3 Energy
4.3.1 Introduction
Pages 128-129, Paragraph 4.60
The report states that the PDP 2018-2037 will focus allocating reliable capacities to meet the power demand up to 2037.
Question 19
Can Thailand provide its forecasts on power demand up to 2037? What percentage of the future energy mix will be met by gas?
Answer
In the year 2037, Thailand power demand forecast will be 367,458 GWh and the ratio of gas to overall energy mix will be 53%.
4 TRADE POLICIES BY SECTOR
4.3 Energy
4.3.2 Hydrocarbons
Page 130, Paragraph 4.65
The report states that Thailand's natural gas reserves have generally declined and, in 2018, it held 6.83 trillion cubic feet of proven natural gas reserves.
Question 20
How long will Thailand's proven natural gas reserves last at current rates of production?
Answer
With reference to Annual Report 2018 of Department of Mineral Fuels, Ministry of Energy, the Kingdom of Thailand's natural gas Proved Reserve was commercially estimated for 6.06 Trillion Cubic Feet (TCF) at the year-end of 2018. Under current circumstance, with this amount, it is seemingly projected to supply natural gas demand of the nation for at least five years. Nevertheless, it is convinced that there is still more potential to be developed and the natural gas proved reserve can extend for longer through further development activities.
Thus, to strengthen the capability of long-term securing energy supply, one of the prime policies of the Royal Thai Government is still to promote and encourage investors to perform exploration and development in upstream business. In this regard, Thailand is now in the process of preparation to launch a new bidding round for the right to petroleum exploration and production in new areas to boost exploration activities for continuous development within the business.
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4 TRADE POLICIES BY SECTOR
4.3 Energy
4.3.2 Hydrocarbons
Page 131, Paragraph 4.70
The report states that Thailand relies increasingly on natural gas imports, which take the form of LNG, primarily from Qatar, and pipeline gas from neighbouring offshore fields in Myanmar. In 2015, Thailand signed its first long-term contract with Qatar to secure gas supplies. Thailand has an extensive natural gas transmission infrastructure, and the national gas pipeline system connects onshore and offshore gas fields to gas separation plants, power plants, and industrial users. Consumption of natural gas is primarily driven by electric-power generation, followed by the industrial sector, and natural gas processing plants.
Question 21
Will Thailand look to diversify its LNG suppliers in the future? What opportunities are there for Thailand to consider importing LNG from Australia?
Answer
The government does not regulate the LNG market. Therefore, the private sector can import LNG from global market.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT
3.1 National Policies towards Structural Reform
Page 6, Paragraph 3.6
The 10 targeted industries have been categorized into two groups as "First S-Curve Industries" - the upgrading of five existing industries, and "New S-Curve industries" - the development of new high- technology and innovative industries
Question 22
Are there incentives available for foreign investment in these industries?
Answer
Yes. Thailand Board of Investment's investment promotion scheme is on non-discriminatory basis.
3 ECONOMIC AND TRADE POLICY DEVELOPMENT
3.1 National Policies towards Structural Reform
3.1.2 Trade and Business Facilitation
3.1.2.1 Ease of Doing Business
Page 8, Paragraph 3.16
Department of Business Development (DBD) has undertaken several activities in order to put force greater ease of doing business for foreign investors as follows:
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(1) Launching the e-Registration System and currently working on a project to upgrade the system with the objective to develop its capacity…
Question 23
We note Thailand has identified a number of efficiencies during COVID-19 that have made doing business easier – particularly on issues like e-documentation and e-commerce. What steps will Thailand take to retain these efficiencies, which incentivise trade and investment with Thailand, as we return to a business-as-usual setting?
Answer
We aim to maintain our service and business continuity by encouraging the use of the e-Registration system in order to reduce face-to-face services.
3 ECONOMIC AND TRADE POLICY DEVELOPMENT
3.1 National Policies towards Structural Reform
3.1.2 Trade and Business Facilitation
3.1.2.3 Regulatory guillotine
Page 8, Paragraph 3.21
To enhance Thailand's competitiveness and improve Thailand's ease of doing business, since 2016 the Government has initiated the project called "Regulatory Guillotine" by hiring Thailand Development Research Institute (TDRI) to review Thailand's existing laws, rules, and regulations to ensure efficiency, as many laws have become redundant, obsolete, or incompatible with current situations. The first stage of the project is "Licensing Guillotine", focusing on streamlining the complex licensing and permits issuing processes and regulatory procedures to facilitate people and businesses.
Question 24
Can Thailand provide an update on this project, including any specific outcomes that relate to improving Thailand's regulatory environment?
Answer
The Government has given approval to the revised National Reform Plan wherein the “Regulatory Guillotine” project has been highlighted as one of the key reform areas to be achieved by the year 2022, with the Strategic Transformation Office (STO) and Office of Public Sector Development Commission (OPDC) as the main steering agencies. At this stage, Thailand Development Research Institute (TDRI), which had been commissioned by the Government, has submitted findings to STO, identifying a total 1,094 licensing processes in several business sectors, including inter alia SMEs, service providers, real estate, tourism, and international trade, which could be reviewed. These findings have been circulated to all agencies concerned. Agencies are expected to take action based on findings in this study. They may seek guidance and consultation from STO and OPDC. One example of a specific outcome relating to Thailand's regulatory environment is the facilitation of movement of foreign nationals residing in Thailand by streamlining declaration of stay requirements.
Question 25
Can Thailand provide an update on progress to meet its commitments under TAFTA in relation to maize and sugar imports?
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Answer
The Ministry of Commerce issued the legal enactment on the importation of maize under TAFTA that will be effective on 1 January 2021. For sugar, the relevant agency is considering the draft regulation for the importation of sugar under TAFTA.
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BRAZIL
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
4 TRADE POLICIES BY SECTOR
4.1 Agriculture
Page 120, Paragraphs 4.29 and 4.32
According to the Secretariat Report, the Bank for Agriculture and Agricultural Cooperatives has been providing input subsidies to farmers. This has been confirmed by Thailand in its response to questions posed by Brazil in the Committee on Agriculture (CoA). In addition, Thailand has provided product-specific support to sugarcane since 2009, and some of the programmes that have already been notified are expected to expire in 2020. In light of the above, could Thailand provide the following information:
Questions
Could Thailand provide a complete list with the legislation enacting the "Input Support Scheme for Cane Growers" and the "Support to improve environment Cane Growers", both mentioned by Thailand in its answers to the Q&A in the CoA?
Aside from the two abovementioned programmes, has Thailand enacted any other product-specific domestic support programmes directed at sugarcane or sugar producers since its last notification, which covered the 2014-2016 period? If so, could Thailand provide a list of the legislation enacting those programmes?
Answer
Thailand confirms the answers that was submitted in the CoA meeting as follows:
1) The Cabinet has approved the assistant measures for cane growers in two schemes:
- Input Support Scheme for cane growers: The Cabinet approved 6.5 billion Baht budgetary outlay for the scheme. The support provides a payment of 85 Baht per ton for cane growers who sell their canes to domestic sugar factories (at a maximum of 5,000 tonnes per household). This scheme aims to help cane growers to access agricultural facilities such as fertilizers, seeds, pesticides and tools, as most cane growers in Thailand are low-income people whose crops were affected by droughts. Cane growers who have registered with the Office of Canes and Sugar Board and signed contract with sugar millers will receive these payments.
- Support to improve environment: Cane growers in Thailand sometimes burn their sugar canes before cultivation for ease of harvesting. The sugar cane burning has caused pollution and hazardous dust of PM 2.5 in many provinces across Thailand. In order to reduce PM 2.5, the government approved 3.5 billion Baht budgetary outlay for the scheme. The support programme provides a payment of 92 Baht per ton for cane growers if they do not burn their canes. This scheme aims to reduce sugar cane burning before cultivation, which will help to improve environment and protect human health from PM 2.5 as a result. The Cabinet approval can find at http://www.cabinet.soc.go.th/
2) Since 19 November 2007, the Cabinet approved the government budget of 450 Million Baht to subsidize the Cane and Sugar Fund's liabilities from the Bank for Agriculture and Agricultural Cooperatives' loan. The payment started in 2009 and will be expired by the end of 2020
3) The Ministry of Commerce is collecting information from the relevant authorities. Once we received all information, we will notify to the CoA.
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Question
Does Thailand plan to notify any domestic support policies directed at sugarcane or sugar producers under article 6 of the AoA? If so, could Thailand provide details on these policies (e.g. under which paragraph of Article 6 will the policy be notified)?
Answer
Thailand confirms the answers that was submitted in the CoA meeting as follows:
1) The Cabinet has approved the assistant measures for cane growers in two schemes:
- Input Support Scheme for cane growers: The Cabinet approved 6.5 billion Baht budgetary outlay for the scheme. The support provides a payment of 85 Baht per ton for cane growers who sell their canes to domestic sugar factories (at a maximum of 5,000 tonnes per household). This scheme aims to help cane growers to access agricultural facilities such as fertilizers, seeds, pesticides and tools, as most cane growers in Thailand are low-income people whose crops were affected by droughts. Cane growers who have registered with the Office of Canes and Sugar Board and signed contract with sugar millers will receive these payments.
- Support to improve environment: Cane growers in Thailand sometimes burn their sugar canes before cultivation for ease of harvesting. The sugar cane burning has caused pollution and hazardous dust of PM 2.5 in many provinces across Thailand. In order to reduce PM 2.5, the government approved 3.5 billion Baht budgetary outlay for the scheme. The support programme provides a payment of 92 Baht per ton for cane growers if they do not burn their canes. This scheme aims to reduce sugar cane burning before cultivation, which will help to improve environment and protect human health from PM 2.5 as a result. The Cabinet approval can find at http://www.cabinet.soc.go.th/
2) Since 19 November 2007, the Cabinet approved the government budget of 450 million Baht to subsidize the Cane and Sugar Fund's liabilities from the Bank for Agriculture and Agricultural Cooperatives' loan. The payment started in 2009 and will be expired by the end of 2020
3) The Ministry of Commerce is collecting information from the relevant authorities. Once we received all information, we will notify to the COA.
WT/TPR/M/400/Add.1
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BRAZIL – 1ST ADDITIONAL QUESTIONS
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT – WT/TPR/S/400
2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES
Pages 116-117, Paragraph 4.16
Brazil notes that more than a quarter of Thailand's tariffs are non-ad valorem.
Question
Is Thailand currently evaluating the possibility of replacing these tariffs by their ad valorem equivalent?
Answer
At present, The Royal Thai Government has no plan to replace non-ad valorem tariffs by their ad valorem equivalent.
Question
What was the average, the maximum and the minimum applied tariff for the tariff lines subjected to non-ad valorem duties between 2017 and 2019?
Answer
The average, the maximum and the minimum applied tariff for the tariff lines subjected to non-ad valorem duties between 2017 and 2019 are summarised in the table below:
Applied tariff (Baht per unit) Unit name No. of tariff lines Average Maximum Minimum Kilogramme 737 12.20 0.001 100.00 Litre 95 4.15 0.01 80.00 Litre (of solid goods in kilogramme) 49 2.08 0.02 7.00 Metre 1 0.50 0.50 0.50 Gross 1 2.00 2.00 2.00
Pages 119-120, Paragraphs 4.30-4.31
The Secretariat's ability to report on Thailand's domestic support policies has been hampered by the lack of DS:1 notification. Members have also been curtailed on their capacity to evaluate Thailand's compliance with its obligations as established in the AoA and its schedule of concession by the same reason. Considering that the current TPR provides an opportunity for a broader dialogue between Members, could Thailand provide answers for the following questions:
Questions
When will Thailand notify its Domestic Support outlays regarding years 2017-2019 to the CoA?
How much has Thailand spent on its agricultural sector in the form of input subsidies from 2017-2019?
Answers
The Ministry of Commerce is collecting information from the relevant authorities. Once we received all information, we will notify to the CoA.
Question
Why there was no input subsidy granted during 2015?
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Answer
Because 2015 was the transitional period to the new government.
Question
What are the eligibility criteria for input subsidies in the form of loans from the BAAC? Is it defined by which legislation?
Answer
The qualifications for BAAC loan applicants has been set in the Bank for Agriculture and Agricultural Cooperatives Regulations 44 (for farmers) and 45 (for individuals), which are under the Royal Thai Government Act. The qualifications are shown as the following.
For farmer:
1) The applicant must be farmer. 2) The applicant must be of legal age. 3) The applicant must have Thai nationality. 4) The applicant must have sufficient expertise or have received training in agriculture. 5) The applicant must have residence and occupation of his or her agriculture in the operating area of the branch for which he or she has applied for registration as a branch customer for at least one consecutive year. 6) The applicant is the one who generates agricultural production for sale or has other income in a given year of value. 7) The applicant has a good reputation, be honest, diligent and thrifty person. 8) The applicant is not a maniac or has mental infirmity 9) The applicant is not being a bankrupt or an insolvent person. 10) The applicant has never been terminated as a loan customer before. For individual:
1) The applicant must have Thai nationality. 2) The applicant must be of legal age. 3) The applicant must have sufficient expertise or have received training in industry, commerce or service profession. 4) The applicant must have residence and occupation of his or her agriculture in the operating area of the branch for which he or she has applied for registration as a branch customer for at least one consecutive year. 5) The applicant is the one who has an occupational income in a given year of value. 6) The applicant has a good reputation, be honest, diligent and thrifty person. 7) The applicant is not a maniac or has mental infirmity 8) The applicant is not being a bankrupt or an insolvent person. 9) The applicant has never been terminated as a loan customer before.
Question
What are the interest rates for loans from the BAAC for the acquisition of input subsidies? Is there a difference between commodities? How do they relate to market interest rates?
Answer
BAAC has used the floating rate which is based on the Bank of Thailand's interest rate. In details, the Minimum Retail Rate (MRR) has been set for farmers and individual customers' standard loan interest, while the Minimum Loan Rate (MLR) has been set for group or corporate customers' standard loan interest. All customers will be determined the risk rate according to the type of borrower.
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Pages 118-119, Paragraph 4.22
As recalled in the Secretariat's report, in November 2019, Brazil raised a specific trade concern (STC) on the SPS Committee regarding Thailand's approval procedures for imports of pork, because Brazil had not received the questionnaire that it needs to answer in order for Thailand's authorities to initiate the risk analysis procedures. Since then, there has not been any update on the process, which began in 2016.
Questions
Has there been any consideration by the committee on market access of animals and animal products about Brazil request to start exporting pork to Thailand?
When will the Department of Livestock Development (DLD) send the questionnaires for the assessment of animal health and public health controls as well as Brazil's veterinary services?
How long does the process described on G/SPS/N/THA/243 and G/SPS/N/THA/244 usually take?
Answers
The request to export pork to Thailand by Brazil is still in process of Market Access (MA) committee. The questionnaire will be distributed to Brazil after the MA process is done. The process of G/SPS/N/THA/243 and G/SPS/N/THA/244 is case by case basis. It depends on various factors such as time to spend for answering questionnaires and providing additional information when committee requests.
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BRAZIL – 2ND ADDITIONAL QUESTIONS
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT – WT/TPR/S/400
2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES
Page 8, Paragraph 3
During 2020, the difficulties facing the Thai economy have been exacerbated by the adverse impact of the COVID-19 pandemic. The contraction of global trade has severely affected Thai merchandise exports and disrupted global supply chains, including in the automobile sector, which is one of Thailand's main industries.
Question
What were the main channels through which the COVID-19 pandemic shock impacted the Thai economy?
Answer
The Thai economic has been affected through two main channels: (1) the export of goods which effected by the slump in global demand and the supply chain disruption due to the pandemic, and (2) revenue from foreign tourists due to the international travel restriction measure.
Question
What were the main Global/Regional Supply Chains (GSCs or RSCs) in which the Thai economy takes part disrupted by the COVID-19 pandemic shock?
Answer
The main COVID-19 disrupted Global/Regional Supply Chains (GSCs or RSCs) involving Thai economy are such as Aviation, Transportation, Tourism and Hospitality due to a steep decline in overall demand and changes in consumer behaviours pattern.
Question
Is there any econometric simulation of the impact of the COVID-19 pandemic shock on the Thai economy in terms of sectors/products and export/import of goods and services - for instance, using Computable General Equilibrium (CGE) models? If so, under which hypotheses have the simulations been run?
Answer
The key assumption to estimate the impact of pandemic on the Thai economy is the contraction of the export of goods and services. A magnitude of this negative shock is consequential assumption for the projection.
Page 8, Paragraph 5
Thailand's two-way trade in goods and services represented 110% of GDP in 2019, reflecting the country's outward-orientation and integration into global value chains. Thailand's international trade flows show the growing importance of China and ASEAN as its main regional markets and suppliers, although the United States, the European Union and Japan are still among its top trading partners.
Question
Has the Thai economy upgraded its relative position in terms of backward and forward linkages within GSCs or RSCs during the review period?
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Answer
Thai economy has maintained position on "downstream" ends of the value chains as Thailand's backward GVC participation rate is greater that its forward GVC participation rate. According to the 2015 OECD's Trade in Value Added (TiVA) database, Thailand's backward participation rates were 36% and 33.6% in 2010 and 2015 respectively, whereas the forward participation rate were 14.9% and 13.8% in 2010 and 2015 respectively.
Thailand will focus on joining bilateral and multinational trade agreements to decrease trade barriers and strengthen cooperation between countries, especially with ASEAN, in order to make ASEAN to be a center of global supply chains.
Page 14, Paragraph 1.7
The COVID-19 outbreak, which hit Thailand in early 2020, has had an adverse impact on the economy due to a sharp decrease in external and domestic demand. The contraction of global trade has severely affected Thai merchandise exports and disrupted global supply chains, including the automobile sector, which is one of Thailand's main industries.
Question
Do the Thai authorities envisage any change in its pattern of trade integration as a result of the adverse and potentially lasting impact of the COVID-19 pandemic on GSCs or RSCs?
Answer
COVID-19 pandemic highlighted the vulnerability of the current Global Supply Chains (GSCs), that is, relying on few production locations or countries. In the future, the GSCs thereby has a tendency to become more regionalized as countries try to diversify risks and increase resiliency of their regions (such as America and Asia) to future shocks. As a result, regional trade integration will become more important to spur connectivity, trade and production and develop strong, more resilient Regional Supply Chains (RSCs).
Page 16, Paragraph 1.12
In 2019, the Thai economy entered a downturn, with real GDP growing by 2.4%, the weakest pace in the past five years. This reflected both the prevailing global slowdown and international trade tensions, which affected Thai merchandise exports, especially electronic products.
Question
Through which specific sectors/products have the trade tensions between the US and China affected the Thai economy?
Answer
US-China trade tensions has affected Thai economy through sectors that highly linked to Chinese supply chains, especially computers and electronics. Trade tension coupled with changes in technology has caused Thai exports and subsequently domestic production of computers and electronics to contract by 7.2% last year. However, its export has begun to show sign of recovery as it expanded slightly by 1.1% in the first nine months of this year.
Page 24, Paragraph 1.37
During the first two months of 2020, largely as a result of the COVID-19 outbreak, the baht depreciated by about 5% against the US dollar, following a similar trend to other emerging economy currencies around the world, affected by heightened volatility in international financial markets. The baht also depreciated against regional currencies, as reflected in the decline in the NEER and the REER since the beginning of 2020.
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Question
Does the BOT set any formal or informal rule to the baht's real effective exchange rate (REER) value against other regional currencies - the ASEAN countries, more specifically?
Answer
Under managed-float exchange rate regime, BOT does not target a fixed level of the exchange rate. The intervention framework is focused on curbing short-term volatility, while keeping the exchange rate aligned with economic fundamentals in the medium and long term.
Question
In setting monetary policy, does the BOT take into account the potential impact of its interest-rate decision on its regional peers - the ASEAN partners, more specifically?
Answer
The Monetary Policy Committee considers potential impacts of its interest-rate decision on the domestic and external fronts. However, global factors have played a much larger part influencing exchange rate and capital flow movements for small open economies.
Page 136, Paragraph 4.96
During the review period, Thailand was engaged in the implementation of the third phase of the Financial Sector Master Plan (FSMP III), covering the years 2016-20. The FSMP III promotes a more "competitive, inclusive, connected and sustainable" financial sector in Thailand. To this end, it focuses on the following strategic objectives: (i) to promote electronic financial and payment services, and the efficiency of the financial system; (ii) to promote greater financial services access for individuals and businesses of all sizes; (iii) to enhance the capacity of the financial system to support economic and financial integration under the ASEAN Economic Community and with other countries in the region; and (iv) to develop the financial infrastructure (including the legal infrastructure to enhance risk management, and to support financial innovation) so that the financial system remains robust, in compliance with international standards, and able to support the country's economic growth.
Question
What are the regional financial institutions and services (both formal and informal) which best reflect the growing regional financial integration of Thailand into ASEAN?
Answer
ASEAN economies have become more interconnected through regional integration. The role of financial institutions, particularly banks from ASEAN countries, together with necessary financing, such as, credit, payments for imports and exports, will definitely serve as the backbone of regional economic growth. Intra-regional loans and cross-border payments have been growing, thereby, reflecting its relevance. Also, this is in line with the Financial Sector Master Plan (FSMP III), the role of ASEAN banks will become more important in terms of supporting cross-border trade and investment arising from regional economic integration. This results in a regional initiative to further liberalize the banking sector in the region through establishment of "Qualified ASEAN Banks" (QABs). More information can be found in the secretariat report Paragraph 4.112
Thailand concluded QABs negotiations with Malaysia and inscribed market access commitments in the Eighth Package of Commitment on Financial Services (8th Package) of the ASEAN Framework Agreement on Services (AFAS). Apart from bilateral negotiations, Thai commercial banks also pursued business opportunities abroad by obtaining a license or through merger and acquisitions, particularly in ASEAN countries.
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Pages 155-156, Paragraph 4.202
As with the aviation industry, the COVID-19 pandemic struck the tourism sector. From January to May 2020, 6.69 million international tourists arrived in Thailand (an almost 60% decrease from the same period last year); and tourism receipts were USD 11.1 billion, compared to USD 27.4 billion in the same period last year. The authorities noted that the subsectors having the most adverse impact were hotels, and recreation activities industries.
Question
What were the main sectors directly and indirectly affected by international tourism restrictions in Thailand?
Answer
The main sectors that affect from the international tourism restrictions are definitely tourism-related sectors, for instance, the airline business, hotel and restaurant sector, food and beverage businesses (especially that rely heavily on foreign customers), service sector such as a traditional Thai massage business. As of September 2020, the incomes from tourism in Thailand reduced 70.57% from last year at the total value of 0.65 trillion Baht, the hotel occupancy rate was at a low level at 27.93%. However, there are sectors that have indirect impacts of the international tourism restrictions, which are the sectors that involve with a reduction of both foreign and domestic consumptions, for instance, energy businesses, agricultural businesses as well as manufacturing industries. This could result in a surge in unemployment rate from reducing production capacity of industries and might cause negative impacts to the Banking sectors through higher NPLs from businesses.
Question
What are the alternative sources of income for those workers that are directly or indirectly affected by the international tourism restrictions shock?
Answer
The alternative incomes might come from new businesses started during the COVID-19 pandemic, for instance, trading goods via online channel. The others come from family supports, personal savings and also incomes from investments. If a reduction in incomes become a long-term new normal, moving back to stay with family in rural areas or upcountry is a possible option, altering lifestyles towards the Philosophy of Sufficiency Economy.
Question
To what extent is the Thai banking sector dependent upon hospitality services revenues stemming from international tourism? Did they need any governmental support such as special credit lines?
Answer
The financial supports from the government is essential for Thailand's service sectors especially SMEs during this COVID-19 pandemic. At the moment, the government has been promoting the soft loan for SMEs campaign, which involves providing the financial supports for SMEs in tourism sector at the value of 10,000 million Baht with 2% of interest rate and 2-year duration for the maximum of THB 20 million each.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
Page 4, Paragraph 1.4
During the review period, our international trade always accounts more than 100% of GDP. However, due to the global economic slowdown in recent years, plus the novel COVID-19 pandemic in 2020 which is still ongoing, the future of global economy, including Thai economy, might be gloomier than the 2008 Financial.
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Question
To what extent and by which specific factors is the prospect for the Thai economy gloomier now under COVID-19 pandemic than after the Global Financial Crisis of 2007-8?
Answer
1) The Global Financial Crisis affected the Thai economy through the external demand shock and hence the export of goods did decline sharply during that period, but the domestic sector particularly banking sector remained sound. However, this pandemic notably effects domestic sector due to the lockdown and social distancing measures together with the global demand slump, hence this crisis had affected the Thai economy severely than the GFC. The domestic demand contracted sharply in the second quarter of 2020. Moreover, income from foreign tourist which is one of the crucial sources of private revenue notably decreased due to the international travel restriction policy.
2) The extent of economic impacts for Thai economy from the current COVID-19 economic crisis has the tendency to be worse and more prolonged than the impacts from the Global Financial Crisis of 2007-2008. The reason is that the current crisis derived from impacts on real sectors with the majority of labour while the 2007-2008 Global Financial Crisis had originated from the US financial sector.
Page 5, Paragraph 2.6
Thailand's major trading partners during 2015-19 based on total trade value are China, Japan, and United States respectively. In 2019, in terms of export, United States was Thailand's top major export destination, following by China and Japan with the export values of 31.3, 29.2, and USD 24.6 billion respectively. For imports, China was the largest import partner of Thailand, followed by Japan and United States with the import values of 50.3, 33.2, and USD 17.3 billion respectively. If counting all ASEAN member states together, ASEAN would become the most important trading partner of Thailand with values of export and import at USD 62.9 billion and USD 45.0 billion respectively.
Questions
In what sense is this role of regional integration into ASEAN an official growth strategy to counterbalance single players?
How does this conform with the other RTAs in which the Thai economy takes part?
Answers
Thailand attaches great importance to the regional integration as ASEAN is an important market for Thailand products and services. With the harmonized rule and various agreement in the region, the trade and investment environment is much improved. Furthermore, by being united as one, each ASEAN Member state can increase their bargaining power.
Page 5, Paragraph 2.9
Thai enterprises also increasingly invest abroad. The statistics show that in 2019 31.0% of Thai investment flows went to ASEAN, mainly to Singapore (20.0% of total investment outflows), followed by Japan (13.0%); the European Union (11.7%); the United States (10.0%); and Hong Kong, China (7.5%). Sectors that Thai enterprises focused on were manufacturing, wholesale and retail trade, and financial and insurance.
Question
Are these flows of FDI into and out of the Thai economy exclusively trade-related, in the sense of being an integral part of the global/regional supply chains (GSCs or RSCs)?
WT/TPR/M/400/Add.1
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Answer
FDI inflows and outflows of Thailand were involved with direct investment that played a significant role in setting up both domestic and oversea production plants and led to the integration with global and regional supply chains, particularly in exporting sectors, such as agro-manufacturing, electronics, vehicles, and petroleum-related manufacturing. Due to the liberalization of outward investment, there were a gradual increase in FDI outflows to these sectors abroad as well. Nevertheless, it is undeniable that more than half of the inflows and outflows did not directly link to global supply chains or trade-related activities, but financial investment or other business-related transactions. These flows, for example, went to real estate, financial intermediary, and insurance.
Page 23, Paragraph 3.96
Due to the COVID-19 outbreak, the Government has elevated the implementation of measures to the highest level by virtue of Section 5 of the Emergency Decree on Public Administration in Emergency Situations B.E. 2548 (2005) on 26 March B.E. 2563 (2020). Since March 2020, the Government has approved three phases of COVID-19 Relief Package to mitigate the economic impacts from the pandemic, focusing on economic stimulus package and healthcare spending.
Question
How has the COVID-19 pandemic affected the workings of the GVCs or RVCs in which Thailand takes part (ASEAN in particular)?
Answer
During the pandemic, there are some constraints to the Thai cross border trading situation, such as transportation restriction. Nevertheless, it is expected that the trade facility will resume shortly, and the regional trade integration remains in the same tendency.
The spread of COVID-19 in China and other countries led to the disruption of supply chains and limited flows of travel and trade. The lockdown and quarantine measures in Thailand and ASEAN member states brought immediate difficulty to connectivity among member states. Nevertheless, ASEAN member states agreed to keep their markets open to mitigate the impact of pandemic. Now, Thailand and ASEAN member states currently put efforts on trade facilitation and strengthening supply chain connectivity. Among the initiatives are the adoption of Ha Noi Plan of Action to ensure the smooth flow of essential goods, and trade facilitation through the full boarding of all ten member countries on the ASEAN Single Window Live Operation for the exchange of the e-ASEAN Trade in Goods Agreement (ATIGA) Form D.
Question
In which way has the Thai economy been affected by the dislocations in GVCs or RVCs caused by the COVID-19 pandemic in terms of its exports and imports of goods and services?
Answer
The slowdown in global demand and the disruption of supply chain and logistics due to the COVID-19 outbreak and related measures has caused Thai exports and imports in the first half of this year 2020 to contract by 7.09% and 12.62%, respectively. The underperforming export products were vehicles and parts, electronic circuits, machinery and parts, and air conditioners. Imports of raw materials and intermediate products declined correspondingly to the exports. Nevertheless, agricultural and agro-industrial products were still in high demand and their exports were able to maintain positive momentum amid the outbreak.
Page 23, Paragraph 3.98
At present, Thailand has 13 regional and bilateral free trade agreements (FTAs) successfully in effect. There are two FTAs which have entered into force during 2015-19, namely Thailand-Chile FTA and ASEAN-Hong Kong, China FTA.
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Question
How has GVCs or RVCs influenced Thailand's participation in Regional Integration Agreements (RIAs)?
Answer
Thailand views that participating in RIAs will help Thailand to better integrate into global value chains. Thailand focuses on joining bilateral and multinational trade agreements to decrease trade barriers and strengthen cooperation between countries, especially with ASEAN, in order to make ASEAN to be a centre of global supply chains.
Question
What are the main sectors/products in which Thailand's participation in GVCs or RVCs materializes itself?
Answer
With Thailand's strategic location, regional and bilateral trade agreements and policy to welcome trade and investment from all countries, Thailand has become a major production hub of various sectors. This was reflected by the high GVC participation rate of manufacturing sectors such as electrical equipment (56.4%), computer, electric and optical products (50.86%), and motor vehicles (47.79%), according to 2015 OECD's Trade in Value Added (TiVA) database.
WT/TPR/M/400/Add.1
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CANADA
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
2 TRADE AND INVESTMENT REGIMES: Trade Policy Formulation and Objectives
Page 35, Paragraph 2.12
It is noted that Thailand's Ministry of Commerce's Action Plan for 2020-2022 has an objective of "Enhancing Capacity Building and International Development Cooperation," aimed at increasing Thailand's capabilities and competitiveness in order to expand its presence in foreign markets, and at enhancing its economic partnerships with key trading partners. As part of this Plan, one of the implementation guidelines includes the enhancement of international trade and economic cooperation through FTA negotiations, and promotion of technical cooperation with neighbouring countries, including Cambodia, Lao PDR, Myanmar and Vietnam.
Question 1
Would Thailand explain what type of technical cooperation it provides to neighbouring countries? How is this technical cooperation delivered? In what areas does Thailand provide technical cooperation?
Answer
Under the Ministry of Commerce's Strategic Plan 2020 – 2022, one of our objectives is to build capacity and promote international development cooperation by means of i) expanding markets for Thai's products and business operations in foreign countries; ii) promoting border and cross-border trade; and iii) engaging in negotiations on international trade and development cooperation.
Program for technical cooperation, which will be held by Ministry of Commerce, is a part of enhancing academic and trade relationship between Thailand and neighbouring countries. We will host an international conference among Thailand, Cambodia, Lao PDR, Myanmar and Vietnam (CLMVT) as CLMVT Conference on Economics Trade Indices: CLMVT - CETI with an aim to upgrade CLMVT international standard and quality on Economics Trade Indices.
Page 35, Paragraph 2.13
It is noted that the Joint Public and Private Sector Consultative Committee, public hearings and online public-hearing platforms are the main channels for consultations with the public on trade policy issues.
Question 2
Would Thailand explain their consultations process for trade policy issues, such as in regard to a specific trade agreement or a specific trade policy issue?
Answer
The Joint Public and Private Sector Consultative Committee (JPPSCC) comprises of government and private sector related to trade in Thailand. The JPPSCC meets regularly to review trade concerns and issues from all sectors. The matters are then conveyed to relevant authorities for solution and policy formulation, if applicable.
Question 3
Other than the private sector, what other sectors or stakeholders are consulted on trade policy issues?
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Answer
NGOs, academics, and the general public are consulted on most trade policy issue as a part of the public hearing process.
2 TRADE AND INVESTMENT REGIMES: Trade Agreements and Arrangements: WTO
Page 38, Paragraph 2.19
The Secretariat Report notes that "Thailand has been an active user of the WTO's dispute settlement mechanism. Overall, the country has been involved directly in 18 cases: 14 as a complainant and 4 as a respondent. It has also participated as a third party in 93 cases. During the period under review, Thailand was involved in two new dispute settlement cases: one as a complainant, and the other as a respondent. In addition, it kept engaged in the new developments of a previous dispute brought by the Philippines against certain Thai customs and fiscal measures on cigarettes. In this case, in September 2019, Thailand appealed the second compliance panel report (Article 21.5 of the DSU), which was circulated on 12 July 2019." [footnotes omitted]
Question 4
With respect to the dispute concerning certain Thai customs and fiscal measures on cigarettes, and taking into account that the Appellate Body cannot hear the appeal filed by Thailand, is Thailand willing to consider entering into an appeal-arbitration agreement under DSU Article 25 so as to enable a prompt resolution of that dispute?
Answer
Please refer to Thailand's statement in recent DSB meetings.
3 TRADE POLICIES AND PRACTICES BY MEASURE: Customs Valuation Procedures
Page 50, Paragraph 12
It is noted that Thailand permits the reversal of the deductive method and the computed method, if such requests from importers are approved by customs officers.
Question 5
Article 4 of the Customs Valuation Agreement states that "at the request of the importer, the order of application of Articles 5 and 6 shall be reversed." This represents a mandatory obligation on Customs to reverse the order of the methods if so requested by the importer. Could Thailand explain the process of obtaining such approval for the reversal of the deductive method and the computed method, and how its procedure is consistent with the obligation in Article 4?
Answer
Written request to reverse the methods must be submitted by an importer to Customs officer. In addition, importer must submit other documents and evidence for calculation. When all information is received, officer would consider if computed method can be processed, however, if not, consultation process will be conducted in order to proceed to fallback method.
3 TRADE POLICIES AND PRACTICES BY MEASURE: Import Licensing
Page 58, Paragraph 3.44
The Secretariat Report indicates that "the import of munitions is subject to a non-automatic licence, for maintaining national security, public order or public benefit reasons; the same requirement applies to the importation of narcotic drugs, and psychotropic substances, to protect human health."
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Question 6
What laws or regulations apply for the import of arms, strategic items and dual-use goods into Thailand? Could Thailand provide links to the relevant laws/regulations?
Answer
Department of Foreign Trade has announced The Control of Item in Relation to the Proliferation of Weapons of Mass Destruction Act B.E. 2562 (2019) (TCWMD Act) to regulate controlled activities and strategic items in order to prevent the proliferation of WMD. However, at present import of arms and strategic items are not yet regulated.
The link to the relevant laws/regulations can be found at:
English: https://bit.ly/3lmo2DI
Thai: http://www.ratchakitcha.soc.go.th/DATA/PDF/2562/A/056/T_0085.PDF
The law for the import of arms is "Arms Control Act B.E. 2530 (1987)" and for other laws and regulations which are related also published on DID's website (http://www.dil.mod.go.th) under article "laws and regulations".
3 TRADE POLICIES AND PRACTICES BY MEASURE: Anti-dumping and Countervailing Measures
Page 61, Paragraph 3.47
Canada notes that Thailand's legislation on anti-dumping and countervailing measures was modified over a year ago, in May 2019, but has not been notified to the WTO yet.
Question 7
Could Thailand indicate when the English translation of the new law will be notified to the WTO?
Answer
Still in the process and will be notified to the WTO when the translation into English is completed.
3 TRADE POLICIES AND PRACTICES BY MEASURE: Customs Procedures and Requirements
Page 63, Paragraph 3.58
It is noted that the Department of Foreign Trade issues certificates of origin for exports from Thailand.
Question 8
Could Thailand explain if the Department of Foreign Trade is going to issue certificates of origin for exports from Thailand to Canadian importers, in the context of a Free Trade Agreement?
Answer
In the future, if Thailand has FTA with Canada, the Department of Foreign Trade will be the only authorized issuing authority of preferential certificates of origin in Thailand.
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3 TRADE POLICIES AND PRACTICES BY MEASURE: Export Licensing
Page 64, Paragraph 3.66
The Secretariat Report states that "the Minister of Commerce, with the approval of the Cabinet, may impose non-automatic or automatic export licensing requirements for various reasons" and the corresponding Table 3.10 lists the products subject to export licensing requirements. However, the table makes no reference to arms, strategic, or dual-use goods.
Question 9
In reviewing the WTO Secretariat report, there is no mention of export licensing requirements for arms, ammunition, military/strategic goods or dual-use items. Could Thailand provide details of its export licensing requirements for these types of goods and/or links to the relevant laws and regulations?
Answer
The main documents of the export licensing for arms, ammunition, military goods are:
1) The copy of purchase order/sale contract/MOU or any related documents between seller and buyer
2) End User Certificate (the destinations shall not be sanctioned by UN)
3) Munitions Specifications/Safety Data Sheet.
Mark: Any relevant documents if necessary.
The other requirements, law, and regulations also published on DID's website (http://www.did.mod.go.th) under article "laws and regulations".
Additionally, Thailand is in the process of drafting the subordinate legislation under The Control of Item in Relation to the Proliferation of Weapons of Mass Destruction Act B.E. 2562 (2019) (TCWMD Act) along with other measures necessary for the export control on strategic items such as Control List and electronic support system (e-TCWMD).
3 TRADE POLICIES AND PRACTICES BY MEASURE: Free zones under the Industrial Estate Authority of Thailand
Page 68, Paragraph 3.76
The Secretariat Report mentions that Industrial Estate Authority of Thailand's (I-EA-T) free zones are established to cater the specific needs of export-oriented companies. Companies established in I-EA-T free zones are eligible for several tax and non-tax incentives, but the report mentions that these incentives are not contingent upon export performance requirements.
Question 10
Could Thailand provide clarifications on eligibility requirements that have to be met by companies to receive the various incentives in the I-EA-T free zones?
Answer
In order to receive the various incentives in the I-EA-T free zones, companies are required to own a land in the I-EA-T free zones that established by Industrial Estate Authority of Thailand, which currently has a total of 14 I-EA-T free zones covered in different regions of Thailand as listed below:
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No. I-EA-T Free Zone Industry Estate located 1 Bangpu I-EA-T free zone Bangpu Industrial estate 2 Lat krabang I-EA-T free zone Lat krabang Industrial estate 3 North I-EA-T free zone North Industrial estate 4 Laem Chabang I-EA-T free zone Laem Chabang Industrial estate 5 South I-EA-T free zone South Industrial estate (Songkhla) 6 Sa kaeo I-EA-T free zone Sa kaeo Industrial estate 7 WHA Chonburi 1 I-EA-T free zone WHA Chonburi 1 Industrial estate 8 Ban wa I-EA-T free zone Ban wa Industrial estate (Hi-tech) 9 Bang pa-in I-EA-T free zone Bang pa-in Industrial estate 10 Gateway city I-EA-T free zone Gateway city Industrial estate 11 Anya thani I-EA-T free zone Anya thani Industrial estate 12 TFD I-EA-T free zone TFD Industrial estate 13 TFD I-EA-T free zone 2 TFD Industrial estate 2 14 World I-EA-T free zone (Lamphun) World Industrial estate (Lamphun)
Note: TFD I-EA T free zone 2 and World I-EA-T free zone have been established in 2020.
Question 11
Also, could Thailand elaborate on the conditions that have to be met before a company can establish in a I-EA-T free zone?
Answer
In order to establish company in the I-EA-T free zone, companies are required to have certificate issued by Ministry of Commerce to apply for permission to be a business operator in the industrial estate and certificate of being an industrial operator or a commercial operator in the I-EA-T free zone, respectively.
3 TRADE POLICIES AND PRACTICES BY MEASURE: Activity- and Merit-Based Incentives
Page 77, Paragraph 3.115
The report mentions that the Office of the Board of Investment (BOI) grants merit-based incentives. One of these merit-based incentives relates to decentralization.
Question 12
Could Thailand explain what is "merit for decentralization", i.e. what are the specific conditions that have to be met?
Answer
Thailand Board of Investment will grant additional incentives if the eligible investment project is located in 20 provinces with lowest per capita income, in industrial estate or industrial zone, in Special Economic Zones (SEZ) defined by the National Economic and Social Development Board and in promoted border provinces in southern Thailand.
3 TRADE POLICIES AND PRACTICES BY MEASURE: Sanitary and phytosanitary requirements
Page 85, Paragraph 3.152
The Secretariat Report notes that there have been no major changes to Thailand's sanitary and phytosanitary regime since its last review.
Question 13
Does Thailand have any planned sanitary and phytosanitary regulatory initiatives that may impact Canadian exports of agriculture, forestry, or aquatic products?
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Answer
According to Article 7 "Transparency" regulated that members shall notify changes in their sanitary or phytosanitary measures and shall provide information on their sanitary or phytosanitary measures in accordance with the provisions of Annex B of the Agreement on the Application of Sanitary and WTO Phytosanitary Measures, Thailand usually notifies WTO members of draft regulations and proceeds the procedure based on such provision.
Page 86, Paragraph 3.154
The Secretariat Report notes that according to the authorities, Thailand generally follows standards set by the OIE, Codex Alimentarius, and the IPPC, where they exist.
Question 14
In July 2012, the Codex Alimentarius Commission announced that it had adopted maximum residue levels (MRLs) for the amount of ractopamine allowed in tissues of pigs and cattle, a decision that was made after a rigorous process of scientific assessment to ascertain the proposed levels have no impact on human health. The assessment was carried out by the Codex Joint Experts Committee on Food Additives. Since 2009, Thailand has continued to ban imports of Canadian pork because ractopamine is approved for use in Canada. Could Thailand advise whether it plans to adopt MRLs for ractopamine based on the Codex MRLs and, if not, could Thailand provide a scientific justification for not basing its import measure relating to the use of ractopamine on the relevant international standard as established by Codex?
Answer
Since Codex has adopted the MRLs for Ractopamine in pig tissue, there was not a consensus. The main concern of MRLs of Ractopamine is the safety for consumer health. Thailand is one of the countries that doesn't allow the use of Ractopamine. Our research team from Mahidol University has studied the impact and risk assessment of Ractopamine on Thai consumer health. This study was published in Thai Journal of Toxicology Vol. 35 No. 2 (2020). The summary of the study is as follows.
"Ractopamine is a β-adrenoceptor agonist produced acute cardiac response. It has been approved to be used as feed additive for swine to promote carcass leanness in some countries. The ractopamine residues in offal are greater than in other tissues. This study aimed to estimate acute risk of dietary exposure to ractopamine from the consumption of swine offal. The exposure was calculated from large amount of swine offal found in each recipe (large portion size) over a single meal (eater only) combined with high residue ractopamine concentration in swine offal found in the recipe. Food consumption data as one person-day was interviewed from 649 people who consumed swine offal 4 times per month. Using residue data from Beijing study in China (used 95/95 Tolerance limit in lung and median residue in other offals) for exposure estimation. The consumption of swine offal from the recipe provided the highest ractopamine exposure in each person of this population showed that the exposures exceeded the acute reference dose (ARfD). The mean, median, 95th percentile and 97.5th percentile exposures were 176, 145, 345 and 375% of ARfD, respectively. Thus, the use of ractopamine as feed additive in pork will provide the exposure raise the significant health concern for acute health risk in Thai people who like to consume food dishes containing swine offal."
3 TRADE POLICIES AND PRACTICES BY MEASURE: Government Procurement
Page 91, Paragraph 3.181
The Secretariat Report indicates that while Thailand has included government procurement chapters in its RTAs with relevant trade partners, they are all limited to cooperation and information-sharing aspects. It is also noted that the Thai Government considers government procurement as a significant tool to promote social and economic development, and that certain policies have been introduced and maintained in this regard.
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Question 15
Could Thailand please provide examples of these policies that aim to promote social and economic development through government procurement?
Question 16
Are such policies applicable only to Thai goods, services and suppliers?
Answer for Q15-Q16
Ministerial Regulation Prescribing of supplies that State needs to Promote or Support and Prescribing of Procurement Procedures by the Selection method and Specific Method B.E. 2560 (2017) is used to promote social and economic development by encouraging Thai SMEs to participate in government procurement.
Question 17
Can Thailand please provide examples of projects or programs currently underway that actively facilitate or fulfil their commitments to cooperation and information exchange with respective RTA Parties?
Answer
There is no information exchange with RTA Parties presently because Thailand has not yet signed any RTA in terms of government procurement.
Page 92, Paragraph 3.182
It is noted that, amongst the prominent new features of the Public Procurement and Supplies Administration Act B.E. 2560 (compared with the previous Regulations), the Act standardized the public procurement process across the country by extending the scope of application from government agencies to SOEs and public organizations, such as universities under the supervision of the State.
Question 18
Does Thailand anticipate further extending the scope of application to include some form of PPPs?
Answer
Thailand does not have plan to extend the scope of application of PPPs. For Thailand, all PPPs projects are not government procurement and they are under Public-Private Partnership Act B.E. 2562 (2019).
Page 93, Table 3.23
The Secretariat Report states that a condition under which the selection method can be used is if a general solicitation notification method has been used but no one has tendered a proposal, or the proposals have not been selected.
Question 19
Under which specific conditions can a procuring entity refuse to select any proposal submitted under the general solicitation notification method?
Answer
In the case where there is no tenderers tendering proposals, or the proposals tendered are not selected, the committee shall purpose to the head of State agency through the head officer to
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Page 95, Paragraph 3.190
The Secretariat Report indicates that Thailand's electronic government procurement system (e-GP system), launched in April 2010, started with pilot projects covering a limited number of procurement entities and methods, and was gradually extended to other procurement entities with the aim of including all government procurement contracts. During the review period, the e-GP system concluded its Phase 3 projects and entered Phase 4 projects on 24 August 2017.
Question 20
Can Thailand please provide an update on the share of government procurement contracts now covered under the e-GP system?
Answer
From the e-GP system data, there are 2,748,413 government procurement projects carried out during October 2018 - September 2019. It can be categorized by procurement method as following:
Procurement methods Projects Total value (million THB) e-bidding 86,776 588,125.15 Specific method 2,480,436 421,399.16 Selective method 14,708 111,441.31
Question 21
Has the Comptroller General's Department set a target date by which they intend to have all projects covered under the e-GP system?
Answer
All public procurement now proceeds under e-GP system.
Page 95, Paragraph 3.192
The Secretariat Report states that Thailand has implemented green public procurement policies since 2005 to achieve sustainable procurement. The Report indicates that the Pollution Control Department, within the Ministry of Natural Resources and Environment, has developed plans to build awareness and support the implementation of green public procurement, and that procuring entities are encouraged to give favourable consideration to products that are certified to be environmentally friendly.
Question 22
Could Thailand please elaborate on the plans developed by the Pollution Control Department, or any efforts now underway, to build awareness and support the implementation of green public procurement?
Answer
Thailand has implemented green public procurement policies since 2005 to achieve sustainable procurement. Pollution Control Department, within the Ministry of Natural Resources and Environment, has developed Green Procurement Promotion (GPP) Plans. The 1st GPP Plan (2008- 2011) targeted only government organizations. The 2nd GPP Plan (2013-2016) covered other organisations including local organizations, state enterprises, and universities. In the 3rd GPP Plan (2017-2021), private companies registered in the stocks market have been the main target group as well as other organizations interested to join in this activity. Additionally, there are totally 36 green product categories which all organization could select to support green public procurement.
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Moreover, all organizations that have been involved in green public procurement policy have to report to the Pollution Control Department every six months. Thus, the number of implementing agencies and expenditure on green products and services increase year by year.
Additionally, the Comptroller general's Department has drafted the Ministerial Regulation Prescribing of supplies that the State needs to Promote or Support (No. 2) B.E.…. Once this regulation gets approval from the Cabinet and Council of State of Thailand, it will be used to support the implementation of green public procurement.
3 TRADE POLICIES AND PRACTICES BY MEASURE: Intellectual Property
Page 105, Table 3.28
Per the Secretariat Report, Table 3.28 identifies applications for trademarks, industrial designs, patents, and patents granted (emphasis added).
Question 23
Can Thailand provide information on the trademarks and industrial designs granted during the review period (emphasis added)?
Answer
The statistics on trademarks and industrial designs granted can be found at https://www.ipthailand.go.th/images/3534/2564/AR_DIP2019_Fianl.pdf (pages 76 and 78).
Page 109, Paragraph 3.247
Per the Secretariat Report, a higher standard of protection is available for wine, spirits, rice, silk, and others as may be designated by the Minister of Commerce, as outlined in Chapter 5 of Thailand's Geographical Indication Protection Act B.E. 2546 (2003) for the protection of specified goods.
Question 24
Could Thailand provide additional information on the criteria used by the Minister to designate certain goods for this higher standard of protection?
Answer
At present, the designated products are rice, silk, wines and spirits; the last two of which are the requirement under Article 23 of the TRIPS Agreement. With respect to rice and silk, they are important products to Thailand.
Question 25
Could Thailand provide a list of what designated products are currently designated by the Minister of Commerce as specified goods, and confirm whether this designation is available for products from third countries?
Answer
At present, the designated products are rice, silk, wines, and spirits. The level of protection afforded to these designated products is available for products from third countries as well.
Question
Could Thailand provide additional information on what level of protection applies to specific product categories under its legislation? How does the level of protection differ as between the product categories covered by Thai legislation?
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Answer
The level of protection afforded to specific goods is stipulated in Section 28 of the GI Protection Act B.E. 2546 (2003). Under Section 28, the use of a GI for the goods not originating in the geographical origin indicated in the application for registration is unlawful, even where the user has also indicated the true geographical origin of those goods or has used any expression or performed any act indicating the true geographical origin thereof. This includes the use of the expressions such as "kind", "type", "style" or any expression or thing similar thereto in association with the GI used for such goods.
For other product categories, Section 27 stipulates that the following acts deem unlawful; (1) the use of a GI for indicating or misleading others to believe that the goods which do not originate in the geographical origin specified in the application for registration are goods originating from such geographical origin or (2) the use of a GI in a manner which causes the public to be confused or misled as to the geographical origin of the goods and as to the quality, reputation or other characteristics of such goods, with a view to causing damage to other traders.
Page 110, Paragraph 3.256
Per the Secretariat Report, in 2019, more than one third of civil cases (207 out of 582 cases) related to IP disputes. In contrast, virtually all the criminal cases related to IP offences such as those relating to counterfeit goods (60-70%), trademark counterfeiting, and violating the Copyright Act. While civil cases are settled or withdrawn in about 50% of the cases, criminal cases are almost universally decided for the plaintiff.
Question 27
Could Thailand provide information on the how many of the cases (civil and criminal) involve residents and how many involve non-residents?
Answer
The statistics of cases is not currently categorized on the basis of residents and non-residents.
Page 111, Paragraph 3.259
Per the Secretariat Report, the number of items seized declined from over 10.8 million items in 2018 to 1.6 million in 2019. All items seized by enforcement authorities were destroyed. In September 2019, the Department of Intellectual Property, in collaboration with the enforcement authorities, destroyed more than 10 million infringing goods.
Question 28
Could Thailand clarify whether items are seized following requests from IP rights holders, or whether determinations on items to be seized and destroyed are a result of independent inspections from Thailand's enforcement authorities?
Answer
The statistics are not gathered on the basis of ex officio and IPR owners' requests.
Question 29
Noting that 1.6 million items were seized in 2019, could Thailand provide additional information on where the additional roughly 8 million items were collected, and subsequently destroyed?
Answer
The destruction carried out in September 2019 was in relation to the items seized in 2018, which amounted to over 10 million items.
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4 TRADE POLICIES BY SECTOR: Agriculture
Page 115, Paragraph 4.10
The Secretariat Report lists the agricultural policies the MOAC implemented in 2020. Item 5 in the list includes "encouraging rain-making during drought seasons, […]"
Question 30
Could Thailand describe the process related to "rain-making" and how the MOAC provides support for this activity?
Answer
Please visit https://www.royalrain.go.th/royalrain/ShowDetail.aspx?DetailId=7031. The Department of Royal Rainmaking and Agricultural Aviation (DRAA) is an organisation under Ministry of Agriculture and Cooperatives, therefore, its budget is allocated from the MOAC's budget. In fiscal year 2020, the budget allocation for DRAA was THB 2,038,091,100.
Page 115, Paragraph 4.12
The Secretariat Report notes that "Thailand has been using a number of policy tools, both at the border and domestically, to facilitate the development of the agricultural sector (see below). However, these measures may not always give the desired results. According to a World Bank study, subsidies for rice production may have slowed the need to transform Thai agriculture. While Thailand is currently the world's second largest exporter of rice, its rice exports face higher production costs compared to competitors from neighbouring countries. This is compounded by volatile foreign exchange rates. The authorities disagree, and stated that Thailand has been developing new rice varieties according to the needs of the world market by dividing rice products into five major groups, namely Thai Hom Mali Rice, Thai fragrant rice, white rice (hard and soft textures), glutinous rice, and niche market rice (such as organic rice, and high-nutrition rice)."
Question 31
In light of the findings in the World Bank study, could Thailand elaborate if the diversification into new rice varieties will reduce the level of subsidies provided to its rice farmers?
Answer
The agricultural domestic support will be used depending on the cultivate situation. When Thailand gives subsidies to our farmers, it will comply with the WTO rules.
Question 32
Would Thailand explain what support, if any, it is providing specifically for its chicken meat and eggs sector?
Answer
According to the MOAC 5-year Agricultural Plan (2018-2022), the Department of Livestock Development (DLD) provides various technical and practical training programmes for Thai livestock farmers including poultry farmers. Not only small-farmers but also large-farmers are covered under this plan. The purpose of training is to enhance Thai farmers' capability to become smart farmers. One of the key programmes is Strengthening Poultry Farmer Project. Farmers, especially small-scale farmers (for household consumption or local sale) will be trained for proper biosecurity measures, good farming management, and managing animal feed. Moreover, the DLD organises the training about Good Agricultural Practices (GAP) for farmers who would like to improve their farm management and get a certification in order to promote their domestic sale and export.
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4 TRADE POLICIES BY SECTOR: Financial services; Banking
Page 139, Paragraph 4.109
It is noted that foreign bank branches are eligible to apply for a subsidiary licence if their country of origin meets any of these conditions: it has a free trade agreement with Thailand; it offers reciprocal market access to Thai banks; or it has "significant business relations with Thailand".
Question 33
Could Thailand clarify which countries have been eligible to apply for a subsidiary licence (e.g., trade agreement, reciprocal market access)?
Question 34
Could Thailand clarify what is considered a "significant business relations with Thailand" and how that assessment takes place?
Answer for Q33-Q34
In applying for a banking license in Thailand, eligibility criteria may vary by liberalization objectives of each licensing period. So far, Thailand has liberalized its banking market for both unilateral and reciprocal track. Previously, Thailand has liberalized its banking sector unilaterally, which allow a foreign bank from any country to submit an application.
Given specific liberalization objectives, the criteria for eligible candidates has been set for each round of application. Considering the licensing round in 2013, the new foreign banks' subsidiaries were aimed at supporting cross-border trade and investment and promoting competition. To reflect the liberalization objectives, the applicants had to demonstrate that their country of origin had significant business relations with Thailand, either by having an FTA with Thailand or being a significant international trade and investment partner.
The significant business relations were a part of the consideration whether the application should be accepted. Also, it would be one of the decisive factors when the number of applicants is greater than the number of licenses to be granted. The criteria indicating significant business relations primarily include, but not limited to, volume of trade with Thailand, direct investment in Thailand, ranking of trade volume and direct investment. The Financial Institutions Policy Committee (FIPC) was the body responsible for application review and finalized the shortlisted candidates, which were subsequently proposed to the Minister of Finance.
Page 140, Paragraph 4.110
It is noted that Thailand Ministry of Commerce issued regulations to remove commercial banking, representative offices of foreign banks, and life and non-life insurance businesses from the list of restricted activities under the Foreign Business Act, both in 2016 and 2017.
Question 35
Could Thailand confirm if they applied this waiver to all financial services investments (e.g., banking; life and non-life insurance)?
Question 36
If not, could Thailand confirm which financial services sub-sectors are still subject to foreign business licensing requirements?
Answer for Q35-Q36
The Ministry of Commerce by Foreign Business Commission reviews categories of businesses in the Lists annexed to the Act annually. Since 2013, the Ministry of Commerce has issued four Ministerial
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Regulations Prescribing Service Business Not Subject to Application for Foreign Business Permission covering 40 business categories, such as securities business under the law on securities and securities exchange, insurance business under the law on insurance, financial institution business, and representative office/regional office.
4 TRADE POLICIES BY SECTOR: Financial Services; Insurance
Page 142, Paragraph 4.120
It is noted that Thailand has implemented amendments in 2019 focused on new provisions on insurance business.
Question 37
Could Thailand clarify the nature of the new provisions governing electronic transactions in the insurance business, and if they apply to cross-border transactions?
Answer
There is an Insurance Commission Notification on Insurance sale, issuing insurance contract and claim payment via Electronic which provide scope on conducting sale, issuing insurance contracts and claim payment through electronic method and emphasize insurance company to have IT Security Standard in order to provide effective electronic insurance services. This notification is applicable for domestic insurers.
Page 142, Paragraph 4.122
It is noted that Thailand authorities are holding discussions regarding the structure of the insurance market, including with regard to the participation of virtual players from other countries.
Question 38
Could Thailand clarify the meaning of "virtual players from other countries", and what would be their potential role?
Answer
Virtual Insurer is the project which OIC study the feasibility of insurance company to change their operation process that can improve the insurance industry landscape by using the digital technology. This project is in the Insurance Development Plan No. 4 (2021-2025).
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19: BCG Economy
Page 9, Paragraphs 3.23 and 3.24
Paragraph 3.23 states that the Government has introduced the concept of "Circular economy" and has exerted much effort to restructure the industry's production pattern from linear to a new circulating pattern that employs cost-effective, waste management and raw materials recycling concepts. Paragraph 3.24 mentions that the Ministry of Finance grants tax incentive for businesses that purchase bio-plastics packaging in order to promote the consumption of bio-plastics.
Question 39
Canada welcomes Thailand's circular economy initiatives. Could Thailand provide details on other measures (in force and future) related to plastics use and waste?
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Answer
Pollution Control Department has formulated Thailand's Roadmap on Plastic Waste Management B.E. 2561-2573 (2018-2030), approved by the Cabinet on 17 April 2019 as a framework and direction to prevent and solve plastic waste management problems in Thailand. This aims to encourage all sectors and stakeholders to take part in the integrated plastic waste prevention and solution problems.
The Roadmap consists of two goals. First is to reduce and eliminate the targeted plastics by using environmentally friendly renewable materials, which will proceed with category and type of unnecessary plastics and plastics that cause environmental impacts. Second is to recycle 100% of the targeted plastic waste by 2070, emphasising on recycle and utilisation according to the circular economy concept.
The Action Plan on Plastic Waste Management Phase 1, B.E. 2563-2565 (2020-2022) is drafted to be a framework and guideline for joint operations of all sectors in preventing and solving plastic waste problems. The implementation will introduce effective results in the first three years (2020-2022) which at least 50% of the targeted plastics will be recycled into the circular economy system by 2022. Additionally, Pollution Control Department has continually implemented measures to manage plastic waste from food delivery services and to control import of plastic scraps and well as driven the plastic waste management together with various agencies.
Furthermore, the Royal Decree was issued for the Revenue Code in B.E. 2559 (2016) allowing 125% corporate income tax exemption for companies or juristic person's partnership spending on specified compostable plastic products which would be used in their business operations for the period of three accounting cycles from 1 January B.E. 2562 (2019) – 31 December B.E. 2564 (2021). In this connection, the government urges the uses of bio-based compostable plastics rather than the petroleum-based ones in order to emphasize the usages of local agricultural byproducts.
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19: Agriculture
Page 11, Paragraph 3.34
Canada notes that the Government Report indicates that Thailand's agriculture GDP is witnessing an increase however, the values provided show the opposite. "During 2015-19, the agricultural GDP increased from USD 19.73 billion in 2015 to USD 7.56 billion in 2019, with an average growth rate of 2.3% per year."
Question 40
Could Thailand clarify the growth rate for agriculture within these years?
Answer
WTO has already corrected the number to USD 27.56 billion.
Pages 12-13, Paragraphs 3.35 and 3.36
It is noted that Thailand's Ministry of Agriculture and Cooperatives (MOAC)'s 5-year operational plan aims at strengthening farmers and agricultural institutions as well as increasing farmers' incomes.
Question 41
What policy tools does Thailand plan to utilize to support farmers as part of this plan? Does this include support for poultry farmers and chicken meat and eggs exports?
Answer
Please see Answer to Q32.
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3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19; Services; Financial Services
Pages 15-16, Paragraph 3.48
It is noted that one of the main initiatives regarding regional connectivity includes further liberalization of banking sector on a reciprocal basis, through bilateral negotiations with ASEAN members.
Question 42
Would Thailand clarify if the liberalization of the banking sector, negotiated bilaterally with ASEAN Members, is part of the ongoing deregulation of commercial banking under the amendments of the Foreign Business Act (FBA), or is it a separate more targeted initiative?
Answer
The bilateral liberalization of the banking sector with ASEAN Members is a regional-level initiative in which its framework has been reviewed and agreed by the ASEAN Central Bank Governors on the principles, elements and implementation process, so it is not part of the ongoing deregulation of commercial banking under the amendments of the Foreign Business Act (FBA).
The liberalization of banking sector in ASEAN incorporates comprehensive principles and key elements in market access and operational flexibility that have been agreed at a multilateral stage. This includes negotiation framework, the characteristics and admission process of the Qualified ASEAN Banks (QABs). The QABs negotiations are on the principles of progressive liberalization and reciprocal basis.
The ongoing deregulation of commercial banking business under the amendments of the Foreign Business Act (FBA) is a continuous effort to reduce regulatory compliance on the banking business. As a result of the deregulation, foreign banks in Thailand are not required to obtain a foreign business license from the Ministry of Commerce when performing certain commercial activities. Nevertheless, the license to operate regulated financial business from the Ministry of Finance is still required.
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19: Intellectual Property
Page 19, Paragraphs 3.69-3.84
It is noted that Thailand's 20-Year IP Roadmap has an aim to guide the development of the country's IP system and to ensure that the IP system is aligned with the country's shift towards "Thailand 4.0".
Question 43
Given the time range of this IP Roadmap, does Thailand intend to conduct periodic review to ensure that the roadmap is reflective of domestic and international IP developments (i.e. impact of the COVID-19 pandemic on the global IP system)?
Answer
From time to time, significant IP developments consistent with the IP Roadmap are reported to the National Committee on Intellectual Property Policy. The committee can review the IP Roadmap as it deems fit.
Question 44
Regarding IP creation and IP protection, could Thailand elaborate on the feedback of awareness and educational activities? Are seminars and workshops tailored to different publics? In addition to social media platforms for the younger generation, are there any other channels of communication for specific audiences?
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Answer
The seminars and workshops organized by the Department of Intellectual Property (DIP) include those which are suitable for the general public and those which are more tailored. Seminars and workshops for the wider public would generally focus on the general knowledge about different aspects of IP. However, the DIP also organizes more focused seminars and workshops for targeted audience. For example, it organized a seminar on copyright law in the digital age for writers, translators, publishers, users of copyright works and students. A seminar on patent law and patent registration procedure was also organized for patent agents.
In addition to social media platforms, the DIP uses other means to reach out different audiences. For example, the DIP provides mobile units to give IP consultation services and accept IP applications in both central and provincial areas. The DIP officials also visits provinces in all regions of the country, among others, to educate local communities and entrepreneurs about the importance of GI and to give advice on GI registration and quality control system. The DIP also produces public relation materials such as infographic and press releases to disseminate IP knowledge.
Question 45
Regarding the IP commercialization aspect of the IP Roadmap, could Thailand provide some quantified information on the performance of the IP Mart platform and IP Fair event?
Answer
There is currently 1,156 items listed on the IP mart online platform. Since 2018, the website has been visited more than 600,000 times.
The IP Fair 2020 was organized on 15-16 September 2020, attracting around 1,200 visitors. During the IP Fair 2020, there were seven seminars on various IP topics including the Madrid trademark registration system and the green innovation. There were also the exhibition of 31 IP works being successful for commercialization and the exhibition of various works winning the IP Champion Awards.
Page 20, Paragraph 3.74
It is noted that Thailand is in the process of amending the Patent Act, including addressing the formality of applications for patents related to genetic resources and traditional knowledge.
Question 46
Could Thailand provide more details on the changes being made to this section of the Patent Act, and the policy goals to be achieved through these amendments?
Answer
In the draft amendment of the Patent Act, a patent application needs to disclose genetic resources and traditional knowledge (if any). The disclosure requirement for genetic resources and traditional knowledge in the said draft does not affect patentability. This is to avoid the misappropriation of genetic resources and traditional knowledge.
4 FUTURE ECONOMIC AND TRADE POLICY DIRECTIONS
Pages 28-29, Paragraphs 1-4
It is noted that Thailand is pursuing economic and trade measures to support post-COVID-19 recovery, including supporting the continued operation of supply chains.
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Question 47
Aside from WTO efforts, what trade policy measures is Thailand pursuing or considering to support post-COVID-19 recovery and supply chain continuity?
Answer
Please see NESDC Economic Report - Thai Economic Performance in Q3 and Outlook for 2020-2021, under section Economic Management for the Year 2021 (page 28), at https://www.nesdc.go.th/nesdb_en/ewt_dl_link.php?nid=4443&filename=Macroeconomic_Planning.
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CHILE
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
RESUMEN
Párrafo 14, página 11
"Tailandia cuenta con multitud de programas de incentivos fiscales y no fiscales a la inversión, con una estructura bastante compleja, entre ellos, los incentivos otorgados por la Junta de Inversiones y los ofrecidos a las zonas económicas especiales, las pymes y a determinados sectores como la agricultura, la pesca y las energías renovables. Entre las principales medidas de apoyo introducidas durante el período objeto de examen figuran las siguientes: planes de incentivos para la promoción de actividades en el marco de la Ley del Corredor Económico Oriental (mayo de 2018); un programa de incentivos fiscales puesto en práctica por el Departamento de la Renta para promover Tailandia como centro internacional de negocios (octubre de 2018); y el conjunto de medidas "Tailandia Plus" dirigido a atraer empresas extranjeras para que se establezcan en el país y a acelerar las inversiones a gran escala (septiembre de 2019). Puesto que no hay un presupuesto específico destinado a los incentivos para la promoción de las inversiones, no se dispone de información sobre los ingresos sacrificados como consecuencia de esas medidas".
Question
El párrafo 14 indica que Tailandia cuenta con multitud de programas de incentivos fiscales y no fiscales a la inversión, con una estructura bastante compleja, entre ellos, los incentivos otorgados por la Junta de Inversiones y los ofrecidos a las zonas económicas especiales, las pymes y a determinados sectores como la agricultura, la pesca y las energías renovables. Al respecto, Chile agradecería a Tailandia compartir mayores detalles respecto a las características de estos incentivos, si son tributarios o no, además del perfil de los inversionistas que favorecerían, y los criterios para diferenciar entre dichos inversionistas.
[Paragraph 14 mentions that Thailand has numerous fiscal and non-fiscal incentive programs to promote investments. Chile would appreciate additional information about these incentives. Whether or not they are tax related, as well as the investor profile they are targeting and how different investor types are being recognised.]
Answer
Thailand's Board of Investment provides both tax and non-tax incentives for promoted juristic persons. An example of tax incentive is the exemption from payment of corporate income tax for a certain period. An example of non-tax incentives is permission to bring foreign skilled workers and experts into Thailand to work in promoted projects. Non-tax incentives aim at facilitating investors' operation in their promoted projects. Incentives provided to local and foreign investors are the same, based on eligible activities. For more details, please visit our website at www.boi.go.th.
2 REGÍMENES DE COMERCIO E INVERSIÓN
2.3 Acuerdos y arreglos comerciales
2.3.3 Otros acuerdos y arreglos
2.3.3.4 Otros acuerdos de cooperación
Párrafo 2.39, páginas 48-49
"Tailandia participa en otros marcos de cooperación subregionales, en particular los siguientes: la Iniciativa de Cooperación Técnica y Económica Multisectorial del Golfo de Bengala (BIMSTEC), destinada a mejorar y acelerar el crecimiento económico mediante la cooperación mutua entre sus miembros en diversas esferas; actualmente están negociando varios acuerdos constitutivos que, en última instancia, formarán parte de un acuerdo de libre comercio. La Estrategia de Cooperación Económica Ayeyawady-Chao Phraya-Mekong (ACMECS) es un marco de cooperación entre Camboya,
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Myanmar, la República Democrática Popular Lao, Viet Nam y Tailandia cuyo fin es promover un desarrollo equilibrado en la subregión. El Programa de Cooperación Económica en la Subregión del Gran Mekong (GMS-EC) tiene por objeto aumentar la prosperidad y la integración entre las economías participantes; su plan estratégico 2012-2022 está basado en una estrategia triple: aumentar la conectividad mediante el desarrollo de la infraestructura física y corredores económicos transnacionales; mejorar la competitividad mediante la facilitación del movimiento transfronterizo de personas y mercancías y la integración de los mercados, los procesos de producción y las cadenas de valor; y crear un mayor sentido de comunidad mediante programas que aborden preocupaciones sociales y medioambientales comunes. El Diálogo para la Cooperación en Asia (ACD) tiene por objeto promover las asociaciones estratégicas y la cooperación en todas las subregiones de Asia."
Question
El párrafo 2.39 alude al Programa de Cooperación Económica en la Subregión del Gran Mekong (GMS-EC), como una iniciativa de cooperación que tiene por objeto aumentar la prosperidad y la integración entre las economías participantes y en específico a su plan estratégico 2012-2022, basado en una estrategia triple. Al respecto, Chile agradecería a Tailandia informar si participa en acuerdos de cooperación específicos que tengan como fin mejorar la competitividad los procesos de producción y las cadenas de valor. De ser así, Chile agradecería a Tailandia compartir mayores antecedentes respecto a dichos acuerdos de cooperación específicos.
[Paragraph 2.39 refers to the Greater Mekong Subregion Economic Cooperation as a program which aims to increase trade and growth in the participating economies, particularly related to the 2012-2022 strategic plan. Chile would like to know if Thailand participates in regional agreements that aim to improve the competitiveness of production processes and the value chain. If so, Chile would appreciate additional information relating to specific agreements.]
Answer
Thailand is one of Mekong countries, comprised of Myanmar, Lao PDR, Cambodia, Thailand, and Vietnam. Mekong countries have participated in various sub-regional cooperation arrangements, with major dialogue partners; namely the Lower Mekong Initiative (Mekong – USA), Mekong – Japan Cooperation, Mekong – Republic of Korea Cooperation, Mekong – Lancang Cooperation (Mekong – China), and Mekong – Ganga Cooperation (Mekong – India). Each arrangement has different objectives but the common goal among these cooperation is to promote sustainable economic growth and well-being of people in the sub-region. One important strategy is to enhance connectivity and improve competitiveness across the sub-region, which can facilitate and enhance trade, improve supply chain as well as reduce poverty, and better the livelihood of the people.
For RCEP agreement, information can be found in Thailand's TPR government report (WT/TPR/G/400) pages 27-28, paragraph 1.1.2. As stated in the report, Thailand is in the process of legal scrubbing the RCEP agreement and expects to sign the agreement by the end of this year.
2.4 Régimen de inversión
Párrafo 2.42, páginas 49-50
"Con arreglo a la Ley de Empresas Extranjeras, los sectores están clasificados en tres categorías o listas en función del nivel de restricción, con diferentes límites de participación extranjera en el capital social y requisitos de aprobación para cada una de ellas (cuadro 2.5). En la Lista 1 figuran los sectores en los que no está permitida la inversión extranjera, que abarcan actividades como la prensa, la radiodifusión, el cultivo de arroz, la ganadería, la silvicultura y la elaboración de madera de bosques naturales, la pesca y el comercio de tierras. Se permite la inversión extranjera en los sectores de la Lista 2 únicamente si los inversores extranjeros obtienen una autorización previa del Consejo de Ministros y una licencia del Ministro de Comercio. Además, estos sectores están sujetos a un límite de participación extranjera en el capital social del 60% (hasta el 75% en algunos casos), y al menos las dos quintas partes de la Junta Directiva deben ser nacionales de Tailandia. La Lista 2 abarca los sectores relacionados con la seguridad nacional y aquellos que tienen una repercusión en las artes, la cultura, las costumbres tradicionales, la artesanía local, los recursos naturales o el medio ambiente. La Lista 3 abarca los sectores en los que "los nacionales tailandeses no están aún en condiciones de competir con los extranjeros". Los inversores extranjeros pueden participar en estos
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- 47 - sectores siempre que dispongan de una licencia concedida por el Director General del Departamento de Desarrollo Empresarial del Ministerio de Comercio y de la autorización del Comité de Empresas Extranjeras. En este caso no se aplica ningún límite de participación extranjera. En la Lista 3 se abarca una amplia gama de actividades, entre ellas, la molturación de arroz, la construcción, la ingeniería, los servicios jurídicos y de contabilidad y los servicios de hostelería (salvo la gestión de hoteles). Sin perjuicio de lo dispuesto supra, las empresas extranjeras que realicen inversiones sustanciales en beneficio de la economía de Tailandia pueden recibir la autorización de la Junta de Inversiones para llevar a cabo actividades de las Listas 2 y 3".
Question
De acuerdo con el párrafo 2.42, la Ley de Empresas Extranjeras de Tailandia clasifica los sectores en tres categorías o listas en función del nivel de restricción, con diferentes límites de participación extranjera en el capital social y requisitos de aprobación para cada una de ellas. En relación con ello, Chile agradecería a Tailandia compartir más información sobre los sistemas de revisión y actualización de estas listas que realiza el Ministerio de Comercio y si estas revisiones contemplan alguna periodicidad. Adicionalmente, Chile agradecería si Tailandia pudiera indicar si considera modificar o liberalizar las listas o sectores específicos de las mismas próximamente.
[According to paragraph 2.42, the Foreign Business Act B.E. 2542 (1999) classifies sectors in three categories according to restrictions, with different limits on foreign participation and different approval requirements. Chile would like to ask about how these lists are revised and updated by the Ministry of Commerce, and whether these updates occur regularly. Additionally, Chile would like to ask if Thailand is considering liberalizing or modifying the lists or sectors in the near future.]
Answer
The Ministry of Commerce by Foreign Business Commission reviews categories of businesses in the Lists annexed to the Act annually. Since 2013, the Ministry of Commerce has issued four Ministerial Regulations Prescribing Service Business Not Subject to Application for Foreign Business Permission covering 40 business categories such as securities business under the law on securities and securities exchange, insurance business under the law on insurance, financial institution business, and representative office/regional office.
To review the regulated businesses under the FBA, the regulation promulgation process is required to hold public hearings from stakeholders and sector regulators are held. The result based on pros and cons usually requires sufficient information for the Commission to remove the regulated businesses from the list.
3. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS
3.3 Medidas que afectan a la producción y al comercio
3.3.3 Prescripciones sanitarias y fitosanitarias
Párrafo 3.155, páginas 97-98
"Tailandia participa activamente en el Comité de Medidas Sanitarias y Fitosanitarias de la OMC. En él se plantearon, durante el período objeto de examen, preocupaciones comerciales específicas con respecto a medidas sanitarias y fitosanitarias aplicadas por Tailandia. El país informó acerca de los progresos realizados y cooperó con sus interlocutores comerciales para resolver esas preocupaciones comerciales específicas, que fueron planteadas por:
• el Taipei Chino, sobre las restricciones de Tailandia a la importación de semillas de papaya (Situación: resuelta);
• los Estados Unidos, sobre los derechos de importación aplicados por Tailandia en relación con los procedimientos de aprobación relativos a los animales vivos y/o los productos de origen animal.92 En respuesta a la preocupación planteada por los Estados Unidos, Tailandia explicó cómo se calculan los derechos de importación y demostró que su cálculo
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era conforme al párrafo 1) f) del Anexo C del Acuerdo MSF. Hasta junio de 2020, los Estados Unidos no habían vuelto a plantear esta cuestión en las reuniones del Comité MSF;
• el Brasil y la Unión Europea, sobre los procedimientos establecidos por Tailandia para aprobar la importación de carne de porcino y otros productos animales.93 En respuesta a la preocupación planteada, Tailandia anunció que había estado colaborando con sus interlocutores comerciales a fin de acelerar el proceso para aprobar la importación de carne de porcino y otros productos animales de acuerdo con el procedimiento de importación notificado;
• el Japón, sobre las restricciones aplicadas por Tailandia a las importaciones de frutos cítricos; y
• los Estados Unidos, sobre el proyecto de lista de Tailandia de sustancias peligrosas relativa a los alimentos que contienen residuos de plaguicidas".
Question
En relación con el párrafo 3.155, el cual se refiere a las preocupaciones comerciales específicas con respecto a medidas sanitarias y fitosanitarias aplicadas por Tailandia durante el período objeto de examen - y en particular a la preocupación comercial planteada por Brasil y la Unión Europea, sobre los procedimientos establecidos por Tailandia para aprobar la importación de carne de porcino y otros productos animales - Chile agradecerá a Tailandia informar acerca de los países que actualmente están autorizados para exportar carne de cerdo y las medidas que aplican en cada caso.
[Regarding paragraph 3.155, which refers to specific trade concerns regarding sanitary and phytosanitary measures applied by Thailand during the period under review, and in particular to trade concerns raised by Brazil and the European Union regarding the Procedures established by Thailand to approve the importation of pork and other animal products, Chile would like to ask which countries are currently allowed to export pork products and what measures are being applied in each case.]
Answer
The DLD has received requests of exportation of pork products from France, Spain, Ireland, Belgium, Hungary, Poland, Netherland, Germany, Denmark, and Austria. Each country is in different stages of importation. Some are in process of consideration by market access committee, some are answering questionnaires, and some entering to import risk assessment.
Currently, the DLD allows importation of cure meat from Italy and chilled and frozen pork from Japan. Both countries had been through the process described on G/SPS/N/THA/243 and G/SPS/N/THA/244.
3.3.6 Política de competencia y regulación de los precios
3.3.6.1 Marco jurídico e institucional
Párrafo 3.196, página 109
"En octubre de 2017 se promulgó la nueva Ley de Competencia Comercial, E.B. 2560 (2017), que derogó la versión anterior de la Ley de Competencia Comercial, E.B. 2542 (1999). La nueva Ley aborda cuestiones relacionadas con la competencia, como los cárteles, el abuso de una posición dominante, las fusiones anticompetitivas, las prácticas comerciales desleales, las exenciones y las sanciones. Asimismo, regula las actividades comerciales, incluidas las empresas agropecuarias, la industria manufacturera, el comercio, los servicios financieros, los seguros y otros sectores de servicios. No obstante, los sectores para los cuales existen disposiciones legislativas específicas en materia de competencia (por ejemplo, las telecomunicaciones y la energía) quedan excluidos del ámbito de aplicación de la nueva Ley. También se excluyen las administraciones de los gobiernos central, provinciales y locales, las cooperativas agrícolas y de otro tipo y las organizaciones sin fines de lucro".
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Question
En relación con la elaboración de las disposiciones legislativas específicas en materia de competencia, en aquellos sectores que quedan excluidos del ámbito de aplicación de la nueva Ley de Competencia Comercial – mencionados en el párrafo 3.196 – Chile agradecería a Tailandia indicar de qué manera participa la autoridad tailandesa en el ámbito de Competencia, en la elaboración de dichas legislaciones especiales. Adicionalmente, Chile agradecería a Tailandia informar si existe una revisión de la competencia, que busque mejorar las condiciones de ella en la elaboración de regulaciones (por ejemplo, por medio de consultas a la autoridad de Competencia).
[In relation to the preparation of specific legislative provisions on competition, in those sectors that are excluded from the scope of the new Act as mentioned in paragraph 3.196, Chile would like to know how Thai authorities regulate competition. Additionally, Chile would be grateful to Thailand to inform whether there is a process to improve competition through the development of regulations, for example, by consulting with the competition authorities when drafting regulations.]
Answer
There are specifically six sectoral regulators excluded from the scope of Trade Competition Act B.E. 2560 (2017), which are Office of the National Broadcasting and Telecommunication Commission, Energy Regulatory Commission, Securities and Exchange Commission, Bank of Thailand, Office of Insurance Commission, and Civil Aviation Authority of Thailand. The sectoral regulators could monitor the anti-competitive behaviours of business operators closely to further improve the business competition.
In order to improve competition through the development of regulations, the Trade Competition Act 2017 authorises the Trade Competition Commission to have powers and duties to propose opinions and recommendations to the Minister and the Cabinet with regard to the government's policies on competition (Section 17 (11)), as well as to give recommendations to government agencies on rules, regulations, or orders which are obstacles to competition and causing obstruction, restriction, or reduction of competition, and that may result in unfairness between business operators (Section 17 (12)); thus, this might be the effective approach for Chile in terms of improving competition through the development of regulations.
General question
En relación a las políticas comerciales abordadas en el informe de la Secretaría (WT/TPR/S/400), se observa que no se hace referencia a algún programa o estrategia de política comercial que involucre la variable enero. Al respecto, Chile agradecería si Tailandia pudiera compartir si cuenta con alguna línea de acción o estrategia que considere la variable mencionada.
[The secretariat report does not mention a program of trade policy program or strategy that involves the gender variable. With regards to this, Chile would like to ask if there is a line of action or strategy which considers the mentioned variable.]
Answer
The Federation of Business and Professional Women's Associations of Thailand under the Royal Patronage of H.M. the Queen (BPW Thailand) is one of the business partners of Department of Women's Affairs and Family Development (DWF), Ministry of Social Development and Human Security (MSDHS). BPW Thailand became an associate member BPW International in 1976. Since the beginning, BPW Thailand has continuously carried on its activities and objectives with development the professional, business and leadership potential of women on all levels through advocacy, mentoring, networking, skill building and economic empowerment programs and projects around the world.
As acknowledged Thailand as a member of ASEAN and also the DWF as the focal point of ASEAN Committee on Women (ACW) of Thailand, MSDHS carries out the implementation of the ASEAN's regional key priorities in women's issues and also the cooperation and the promotion of Women Entrepreneurs' Network. So, BPW Thailand has been cooperated as the ASEAN Women Entrepreneurs' Network of Thailand (AWEN – Thailand) that aims to work with other international and regional
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- 50 - networks of women entrepreneurs or AWEN with the objective of exchanging experience and developing new initiatives to promote economic and trade activities for women in order to enhance and strengthen their skill of entrepreneurship at the national level as well as international level.
4 POLÍTICAS COMERCIALES, POR SECTORES
4.5 Servicios
4.5.1 Servicios financieros
4.5.1.2 Seguros
4.5.1.2.2 Marco jurídico
Párrafo 120, página 162
"Los servicios de seguros se rigen principalmente por la Ley de Seguros de Vida E.B. 2535 (1992) y la Ley de Seguros Distintos de los Seguros de Vida E.B. 2535 (1992). Durante el período examinado, esas leyes se modificaron en 2015 y 2019. Las modificaciones de 2015 consistieron principalmente en cambios en la definición de accionistas tailandeses tanto en las compañías de seguros de vida como en las compañías de seguros distintos de los seguros de vida para hacer posible una mayor participación extranjera en las empresas de seguros nacionales. También se modificaron las disposiciones relativas al Fondo de Seguros de Vida con objeto de proteger mejor a los titulares de pólizas en caso de insolvencia de una empresa de seguros o anulación de su licencia. Las modificaciones de 2019 se centraron en las nuevas disposiciones por las que se rigen las transacciones electrónicas en el sector de los seguros, a fin de mejorar la supervisión de los intermediarios de seguros (agentes y corredores) e introducir sanciones para las actividades fraudulentas en la esfera de los seguros."
Question
El párrafo 4.120 destaca que en el año 2019 se introdujeron sanciones para las actividades fraudulentas en la esfera de los seguros. Al respecto, Chile agradecería a Tailandia compartir ejemplos de algunas de estas sanciones introducidas por las modificaciones del mencionado año.
[Paragraph 4.120 mentions that in 2019 penalties were introduced for insurance fraud. Chile would like to know what penalties are currently in use.]
Answer
According to Life insurance Act (No. 4) B.E. 2562, penalties for insurance fraud are as follows:
Section 114/3 Any person who in bad faith deceives any other person by soliciting, introducing or arranging for execution or renewal of a life insurance agreement between that other person and the company, but does not cause the life insurance contract to be actually execute or renew, and by such deception receives any property from the deceives or any third person, or causes the deceived or any third person to execute, withdraw or destroy any title deed, shall be liable to imprisonment not exceeding three years, or a fine not exceeding three hundred thousand baht, or both.
Where the offence under paragraph one is committed through making false statements to the public, or concealment of any fact that ought to be notified to the public, the offender shall be liable to imprisonment not exceeding five years, or a fine not exceeding five hundred thousand baht, or both.
Section 114/4 Any person who in bad faith claims the benefits under an insurance policy or presents false evidence for the claim will be liable to imprisonment not exceeding three years or a fine not exceeding three hundred thousand baht, or both.
A person who, in manner, assists or facilitates any other person in committing the offence under paragraph one shall be liable to punishment under paragraph one.
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Section 114/5 Any person who gives, demands, or agrees to give any property or benefit to or for a director, person who has power of management, an officer, employee or person authorized by the company in order to induce compensation or payment or provision of benefits under an insurance policy which should not be made in accordance with law shall be liable to imprisonment not exceeding five years, or a fine not exceeding five hundred thousand baht, or both.
A person who asks for, receives, agrees to accept any property or benefit for him or herself, or for other, in order to receive compensation or payment or benefits under an insurance policy which should not be made in accordance with law shall be liable to imprisonment not exceeding five years, or a fine not exceeding five hundred thousand baht, or both.
Párrafo 122, páginas 162-163
"Con arreglo a la ley vigente, los servicios de seguros de vida y seguros distintos de los seguros de vida solo pueden ser suministrados por una sociedad anónima o una sucursal de una compañía de seguros extranjera (no se permite el establecimiento de más de una sucursal). En ambos casos se requiere la correspondiente licencia. La solicitud de licencia para emprender una actividad aseguradora deberá presentarse al Ministro de Hacienda; si se aprueba, el inversor interesado deberá constituir una sociedad anónima, entregar un depósito de seguridad a la OIC y establecer un fondo de capital suficiente en el plazo de los seis meses siguientes a la constitución de la sociedad. La licencia se expide cuando se cumplen esas condiciones. Una compañía de seguros de vida autorizada no puede intervenir en actividades de seguros distintos de los seguros de vida, y viceversa. Como el mercado local de seguros está saturado, el Gobierno no ha expedido nuevas licencias desde 1997; en lugar de ello, alienta a las compañías de seguros a realizar fusiones y aumentar la participación del capital extranjero. Actualmente, las autoridades deliberan sobre la estructura del mercado de seguros, en particular con respecto a la participación de agentes virtuales de otros países. En 2018 se anuló la licencia de una compañía de seguros distintos de los seguros de vida debido a su fragilidad financiera".
Question
El párrafo 4.122 dispone algunos requisitos para suministrar seguros de vida y seguros distintos de los seguros de vida. Entre ellos, la solicitud de licencia deberá presentarse ante el Ministerio de Hacienda. En relación con ello, Chile agradecería a Tailandia compartir los criterios y requisitos que observa el Ministerio de Hacienda para el otorgamiento de las licencias, así como los plazos del procedimiento. Junto con ello, Chile agradecería si Tailandia pudiera ahondar en las razones de por qué no se han expedido nuevas licencias desde 1997, más allá de la razón indicada (saturación de mercado).
[Paragraph 4.122 mentions some requirements to provide life and non-life insurance. Among them, a license application must be submitted to the Ministry of Finance. Chile would appreciate information about the requirements for granting such licenses and the timeframes/due dates involved. Chile would also like to know more about why no new licenses have been issued since 1997, other than stated reasons of market saturation.]
Answer
According to the Notification on Establishment Insurance Company, 1995, the summary of the licensing criteria and requirement are as follows:
1) Sound business and financial plans
2) Qualifications of Shareholders, Board of Directors and Senior management
3) No relationship in term of shareholding and management with existing insurance company
4) Minimum capital requirement 500 million Baht for a life insurance company and 300 million Baht for a non-life insurance company.
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Supporting documents for applying a license:
1) An application (company name, location of head quarter and registered capital etc.)
2) Biography of founders
3) 5 years business plan
4) Biography of executive
5) Expected expenditure for establishing a company
6) Expected premium.
Registration: After the application is approved, the company shall register as a limited company or public limited company within 90 days from the date of receipt of approval to establish a company.
Submission of applications: A person who wishes to establish a limited company or a public limited company and obtain a life insurance business license or a non-life insurance business license for the year 1995 may submit an application and place a deposit specified herein within three months from the date of publication hereof in the Government Gazette.
[Why no new licenses have been issued since 1997, other than stated reasons of market saturation?]
The roadmap for insurance liberalization in Thailand is consist of three phases as follows:
Phase 1 New License for domestic insurer
In 1997: New licenses were issued to increase the number of life and non-life insurance companies.
Phase 2 Increase portion of foreign shareholder up to 49% (Amend Insurance Act)
In 2008:
• Up to 49 % with approval from OIC Board
• Excess of 49% with approval from MOF with OIC Board recommendation only in a case that the company's standing or operations are of a condition that might cause damage to the insured or the public
In 2015:
• Add the case of Excess of 49% for the purpose of strengthening the stability of the company or insurance business.
Phase 3 New license for foreign insurer
4.5.2 Comunicaciones
4.5.2.1 Telecomunicaciones
Párrafo 4.145, página 168
"En lo que respecta a la conexión a la red troncal nacional, Tailandia adopta una política de "red de acceso abierto". Siempre que los proveedores de servicios apliquen una tarifa justa y asequible para la última milla, todo operador con licencia podrá conectarse a la red gratuitamente, previa solicitud presentada al MDES. Si un operador con licencia que posea su propia red rechaza una solicitud de acceso presentada por otro operador, se cobrará a este último la conexión a la red troncal".
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Question
El párrafo 4.145 indica que se debe aplicar una tarifa justa y asequible para conectarse a la red troncal nacional. Al respecto, Chile agradecería Tailandia compartir a qué se refiere con el término "tarifa justa y asequible". Específicamente, agradecemos si Tailandia pudiera indicar si existe algún estándar predefinido, o se estudia caso a caso.
[Paragraph 4.145 indicates that a "fair and affordable last-mile rate" must be applied to connect to the national backbone. In this regard, Chile would appreciate sharing what Thailand means by the term "fair and affordable last-mile rate". Specifically, we appreciate if Thailand could indicate if there is a defined standard, or if this rate is determined on a case-by-case basis.]
Answer
With the Open Access Network policy, it allows the telecom operators to connect to the network (national backbone) and able to install the fiber optic cables from the connecting point to the houses in the target areas. This policy will reduce the investment cost for the telecom operators (no connecting charge) and will lower the internet charges under the circumstances of free competition. The rate will be determined by the market mechanism.
4.5.3 Transporte
4.5.3.1 Aviación civil
Párrafo 4.163, página 171
"En Tailandia no se permite el cabotaje"
Question
El párrafo 4.163 establece que en lo que respecta al transporte aéreo, Tailandia no permite el cabotaje. Al respecto, Chile agradecería a Tailandia indicar el motivo de esta prohibición, junto con compartir si se ha evaluado permitir este tipo de servicio.
[Paragraph 4.163 mentions that with regards to air transport, Thailand does not allow cabotage. Chile would like to know the reason for this prohibition and whether allowing it has been considered.]
Answer
Thailand pursues the gradual liberalization policy in air services and has not yet considered allowing cabotage.
Párrafo 4.169, página 172
"La participación extranjera en la explotación y gestión de los aeropuertos está restringida. Los operadores de los aeropuertos no pueden tener más de un 49% de capital extranjero, y la dirección y administración de la empresa ha de estar a cargo de ciudadanos tailandeses. Actualmente no hay participación extranjera en el sector de la explotación y gestión de los aeropuertos"
Question
El párrafo 4.169 indica que actualmente no habría participación extranjera en el sector de la explotación y gestión de los aeropuertos. Al respecto, Chile agradecería a Tailandia informar si existen medidas para incentivar la participación extranjera en dicho sector y, en caso de existir medidas, pudiese indicar en qué consisten. Junto con ello, Chile agradecería si Tailandia pudiera compartir si han tenido conocimiento de las razones por las cuales no habría participación extranjera en el sector de la explotación y gestión de los aeropuertos.
[Paragraph 4.169 mentions that there is currently no foreign participation in airport operation and management. Chile would like to know if measures to incentivize foreign participation are being
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Answer
Thailand does not have any policy to change the liberalisation in the near future. However, foreigners can participate in airport operation by investing in the stock, but the total of foreign equity must not have more than 49% of all equity. Also, for the business management, foreigners can participate in the operation but there must be controlled by Thai nationals.
4.5.3.2 Transporte terrestre
4.5.3.2.1 Transporte por carretera
Párrafo 4.183, página 175
"Las empresas de transporte de carga pueden ser en un 100% de propiedad privada, pero la participación extranjera no puede superar el 49% del capital. En el mercado del transporte de carga predominan los operadores privados. Los cinco principales transportistas en términos de ingresos son empresas privadas. Las tarifas del transporte de carga no están reguladas".
Question
El párrafo 4.183 señala que en lo relativo a los servicios de transporte terrestre por carretera, las tarifas del transporte de carga no estarían reguladas. Al respecto, Chile agradecería si Tailandia pudiera compartir si existe algún motivo en particular por el cual las tarifas mencionadas no están reguladas. Junto con ello, Chile agradecería a Tailandia indicar si sus autoridades han evaluado la posibilidad de regular dichas tarifas.
[Paragraph 4.183 mentions that the price of road freight transport is unregulated. Chile would like to know why the decision not to regulate these rates was made, and whether regulating them in future is under consideration.]
Answer
The price of road freight transport is upon to market price. Therefore, transport operators are allowed to compete freely in the market. Nonetheless, the Department of Land Transport currently has not had any new policy on price of road freight transport.
4.5.4 Turismo
Párrafo 4.201, página 178
"El 15 de febrero de 2019 Tailandia puso en marcha un sistema de visados electrónicos para que los visitantes extranjeros puedan solicitar un visado de entrada con mayor facilidad. El sistema se implantó en primera instancia para los solicitantes de visados de China, Francia y el Reino Unido. Las autoridades han señalado que el Gobierno tiene previsto ampliar el servicio de visados electrónicos a todas sus misiones diplomáticas. Su objetivo es proporcionar a los extranjeros un canal eficaz y cómodo para solicitar visados de entrada en Tailandia."
Question
El párrafo 4.201 dispone que, a partir de febrero de 2019, Tailandia puso en marcha un sistema de visados electrónicos para los visitantes extranjeros. Al respecto, Chile agradecería a Tailandia compartir cómo se complementa este nuevo sistema de visados electrónicos con la recién lanzada visa ASEAN.
[Paragraph 4.201 mentions that as of February 2019, Thailand has launched the e-visa system for foreign visitors. Chile would like to know how this new electronic visa system is complemented with the recently launched ASEAN visa.]
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Answer
Presently, ASEAN nationals can travel freely due to bilateral agreements between ASEAN member countries themselves. The discussion of ASEAN common visa is still on going. Amidst the COVID-19 pandemic, Thailand's e-Visa system is an important mechanism to effectively screen and facilitate all non-Thai nationals who are currently required to apply for visa to enter Thailand.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 EVOLUCIÓN DE LA POLÍTICA ECONÓMICA Y COMERCIAL, 2015-2019
3.3 Acuerdos comerciales regionales y cooperación económica
3.3.3 Foro de Cooperación Económica de Asia y el Pacífico (APEC)
Párrafo 3.110, página 29
"Habida cuenta de los distintos niveles de desarrollo económico, Tailandia está a favor de establecer un mecanismo de creación de capacidad que promueva la competitividad de las mipymes para que puedan integrarse en las cadenas de valor mundiales y, de esa forma, lograr un desarrollo inclusivo y sostenible. Eso incluye también iniciativas para promover la integración económica regional a fin de reducir los obstáculos al comercio y mejorar la facilitación del comercio"
Question
En relación con lo indicado en el párrafo 3.110: "Tailandia está a favor de establecer un mecanismo de creación de capacidad que promueva la competitividad de las mipymes para que puedan integrarse en las cadenas de valor mundiales", Chile agradecería a Tailandia compartir mayor información sobre si existen actualmente mecanismos que busquen profundizar la competitividad de las pymes. De ser así, Chile agradecería si Tailandia pudiera compartir antecedentes respecto a dichos mecanismos.
[According to paragraph 3.110: "Thailand supports capacity building mechanism that aims to promote MSMEs' competitiveness to integrate into Global Value Chains (GVCs) to realize an inclusive and sustainable development", Chile would like to know if there are currently programs in place to increase competitiveness of MSMEs. If so, Chile would like to know more about them.]
Answer
APEC SME Working Group Projects in 2019 - 2020 co-sponsored by Thailand
Project Proposing Project title year Economy 1. APEC Cross-Sector Innovation Ecosystem Conference: Strengthening Networks 2020 Chinese Taipei of SMEs Co-Innovation for Better Future (self-funded) 2. APEC SME Business Forum - Promoting Resilience and Sustainability of SMEs 2020 China (2020-2021) (self-funded) 3. 2020 APEC SMEs Smart Factory Forum (self-funded) 2020 ROK 4. 2020 APEC SME Cyber Security Forum (self-funded) 2020 ROK 5. APEC Women-Led Start-Up Accelerator Initiative 2020 Chinese Taipei 6. 2020 APEC Business Ethics for SMEs Forum: Realizing the Nanjing Declaration 2020 United States to Universal Code of Ethics Adoption 7. APEC Young Entrepreneurs Kick-Off 2019 Malaysia 8. The 11th APEC SME Technology Conference and Fair (APEC SMETC) 2019 China 9. From Platforms to Payments: Promoting Growth and Innovation for Women 2019 United States Entrepreneurs through E-Commerce
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CHINA
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Pages 8-9, Paragraph 6
The report states that 6. In addition to the immediate threats to its economic outlook, looking forward, Thailand faces some important challenges. Domestic structural constraints, notably low levels of public and private investment, added to the effect of natural disasters and socio-political tensions, have weighed on Thailand's recent economic performance. Persistent inequality also remains a challenge, as income and regional disparities have increased in recent years. Thailand will also need to complete fiscal reform to face the increasing spending requirements associated with a rapidly aging population, and deal with structural problems in its labour market, including the existence of a large informal sector. Another challenge is to achieve higher and sustained increases in total factor productivity, a key indicator of international competitiveness. Thailand's prospects of sustained economic growth could be further improved by increasing public and private investment, implementing policies to enhance innovation, productivity and competitiveness, and pursuing the liberalization of trade and investment, particularly in the services sector.
Question 1
What is Thailand's plan to upgrade the economy structure?
Answer
Section 65 of the Constitution of the Kingdom of Thailand stipulates that the State should develop a national strategy which to be employed as the country's goal for sustainable national development in accordance with the principle of good governance. The National Strategy shall be employed as a framework for formulating consistent and integrated plans in a congruous drive to achieve the aforementioned goals in accordance with the rules and procedures enumerated by national strategy legislation. In this context, the National Strategy Act B.E. 2560 (2017) was drawn up and the National Strategy Committee (NSC) has been mandated to develop the draft National Strategy. The Act also specifies procedures for public participation in formulation of the National Strategy, including monitoring, inspection and evaluation, and measures for encouraging and supporting all civic sectors to comply with the National Strategy. The National Strategy (2018-2037) is the country's first national long-term strategy developed pursuant to the Constitution. It shall be pursued to ensure that the country achieves its vision of becoming "a developed country with security, prosperity and sustainability in accordance with the Sufficiency Economy Philosophy" with the ultimate goal being all Thai people's happiness and well-being.
The implementation of the National Strategy is cascaded through levels of plans as endorsed by the Cabinet's resolution on 4th December 2017. National Strategy is the 1st level of plans; followed by 4 2nd level of plans including 23 Master Plans under the National Strategy, 13 Country Reform Plans, 12th National Economic and Social Development Plan and National Security Plan; and government agencies' 3rd level of plans.
23 Master Plans under the National Strategy are a key implemented tool to evaluate milestones of achievement as they have targeted goal values specified for each five years. Furthermore, the Cabinet, on 3rd December 2019, endorsed the key responsible government agencies for each Master Plans with the main task being to ensure collaboration and integration between related government agencies to move forward to the same direction to successful achieve the vision.
Question 2
Please provide some examples of the informal sectors. Who are mainly involved in those sectors? What is the impact of these sectors on Thailand's economy?
Answer
The informal sector in Thailand contributes around 55% of labour force. It is mainly consist of agricultural labours, self-employed, and unpaid family workers. Hence the informal sector has a
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Page 9, Paragraph 7
The report states that Since Thailand's last Review, a new Constitution was promulgated in 2017, and general elections were held in 2019. The new Government issued the National Strategy (2018-2037), underpinned by its development policy, Thailand 4.0. The latter aims at transforming Thailand into a value-added, innovative, and knowledge-based economy through, inter alia, promoting innovation and the development of new technology-based industries, and enhancing Thailand's position as a regional hub by upgrading its physical infrastructure.
Question 3
Please specify the significant changes of the new Constitution.
Answer
One of the notable changes in the current Thailand's Constitution is the requirement (Section 65) for the State to develop a "national strategy" as a blueprint for the country's economic and social development in the long run based on sustainability and good governance.
Consequently, 20-year National Strategy (for 2018-2037) has been introduced for the first time, with six areas to be addressed, namely 1) National Strategy on Security 2) National Strategy on Competitiveness Enhancement 3) National Strategy on Developing and Strengthening Human Capital 4) National Strategy on Social Cohesion and Equity 5) National Strategy on Eco-Friendly Development and Growth and 6) National Strategy on Public Sector Rebalancing and Development.
Moreover, under the Chapter XVI, National Reform, Section 257-261, prescribes that in order to facilitate national policies towards peaceful nation and society for the sake of good quality of people's lives, national reform in various areas shall be carried out. Certain aspects of economic reform are stipulated in the Constitution including, 1) eliminating obstacles and promoting competitiveness 2) establishing mechanism to promote and support innovation and modern technologies in the economic development 3) improving the taxation and budgeting systems 4) establishing a mechanism to promote competitiveness of cooperatives and social enterprises and green enterprises of all sizes and establishing a mechanism to increase employment opportunities.
Section 270 also mandates the Senate, during its first 5-year term, to follow up and accelerate the outlined national reforms.
In comparison with the Constitution of the Kingdom of Thailand B.E. 2550 (2007), the current Constitution still preserves the parliamentary mandate in ratifying treaties and giving approval to international negotiations, despite the fact that two provisions in the previous Constitution (Section 190) have been amended, i.e., the specified and inflexible timeframe (60 days) for the parliament to give approval, as well as the requirement for the cabinet to present the draft treaties or negotiation frameworks to the parliament before concluding an agreement with other states or becoming a party to treaties.
The official translation of the Constitution can be found at: http://web.krisdika.go.th/data/document/ext849/849061_0001.pdf.
Question 4
How will Thailand implement the policy of Thailand 4.0? What measures have been taken and to be taken?
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Answer
Thailand 4.0 concentrates on driving economy by using technology and innovation. Thailand has recently urged to changing in primary industries through the targeted industries which require the intensity of technology and innovation, for example, the supporting of electric vehicle, robotics and mechanical industry, aviation parts, medical supplies, and bioenergy. Nevertheless, government has already implemented measures, which are the investment promotion scheme and the specific support for facilitating each industry, to bolster Thailand 4.0.
Page 11, Paragraph 20
They must obtain approval to engage in sugar production, rice milling and flour production from rice and other crops.
Question 5
Please specify the qualifications and items for examination and approval.
Answer
For the rice milling production, after a foreigner is granted an approval to operate business in Thailand under the Foreign Business Act B.E. 2542 (1999), s/he will need to apply for a rice trading license under the Rice Trade Act B.E. 2489 (1946) by submitting the documents such as a certificate of juristic person showing a purpose of rice trading (certified before the time of application no more than one month), list of shareholders, factory business license, map of the office, etc. If it is a limited company or a public company limited, majority of the board members must hold a Thai nationality, and there must be at least one person of Thai nationality with an authority to endorse any application forms and certify copies of documents.
Normally, applications for permission will be approved within a day if all the supporting documents are complete. The authorization will be valid for one year from the date of approval and must be renewed every year.
For more information, please visit https://www.dit.go.th/Content.aspx?m=9&c=1078.
Page 14, Paragraph 1.8
The reports states that in response to the pandemic, the Government has implemented a comprehensive package of monetary and fiscal measures. …The relief measures primarily target the most vulnerable households and businesses (in particular, informal workers and SMEs) and consist mainly of cash transfers, provision of soft loans, and tax relief measures (Table 1.2). Increased spending on local infrastructure projects is also contemplated. At the beginning of June 2020, the Finance Minister announced plans to introduce new stimulus measures from the third quarter onward to spur domestic consumption and tourism.
Question 6
How about the effectiveness of these monetary and fiscal measures?
Answer
Those policies partially relieved the impact of the pandemic, particularly to the sector that has substantially effected such as tourism sector.
Question 7
Please share more information on motivating the development of tourism and effectively preventing the spreading of COVID-19?
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Answer
Thailand's tourism industry is heavily affected by the dramatic reduction in the number of inbound international tourists and domestic travels. Therefore, to relieve the impact on the tourism industry, 10,000 million baht of soft loans is designated for the Government Savings Bank to lend and preserve liquidity amongst SMEs in the tourism sector. Several programs are issued to stimulate domestic spending on hotel stays, restaurant dining, and retail shopping. In the "We Travel Together" campaign, for example, the government subsidizes up to five million room nights of hotel accommodation at 40% discount of normal room rates and also provides daily allowance for food and services through government e-wallet application to registered applicants.
Meanwhile, to help prevent the spread of COVID-19 and safeguard public health, Thailand enforces the screening, quarantine, and testing requirements for travelers from abroad to ensure that a COVID-19 case can be detected early and travelers are free from the virus before they visit public places. Domestic and international travelers are encouraged to use mobile phone applications to check into locations which they visit so as to enable effective contact-tracing if a case of COVID-19 happens to be linked to such locations. Many locations, including public transportations, also require mask-wearing and provide hand sanitizers for visitors to reduce the probability of a spread. Overall, a strong, well-resourced and inclusive medical and public health system, early and effective management of patients in hospitals, and a strong capacity to trace and quarantine contacts are key to preventing the spread of COVID-19.
Page 29, Paragraph 1.47
The reports states that FDI inflows into Thailand were volatile during the period under review. After a sharp decrease in 2016, consistent with a general drop of FDI to emerging markets in Asia, FDI inflows rebounded in the following years, reaching a peak of USD 13,2 billion in 2018 (driven mainly by investments in real estate and the financial sector), only to fall again significantly in 2019 (Table 1.7).
Question 8
Please specify the reason on decrease of the FDI in 2019 after the continued increase from 2016 to 2018?
Answer
The decrease of FDI in 2019 was primarily due to two causes. First of all, in March, 2019, there was a large transaction done by Thai energy corporate after it completed the acquisition of foreign energy-related company in Thailand in order to increase its production capacity and enhance long-term performance. This transaction was considered as divestment of non-resident investors, hence it decreased FDI inflows of the approximate amount of USD 3 billion. Secondly, from the 2nd to 4th quarters in 2019, reinvested earnings, which is partly affected by operating profits, modestly dropped from previous year in several sectors primarily due to the ongoing softening domestic demand and the negative impact of trade war on Thai exports.
Page 38, Paragraph 2.19
The reports states that Thailand has been an active user of the WTO's dispute settlement mechanism. Overall, the country has been involved directly in 18 cases: 14 as a complainant and 4 as a respondent. It has also participated as a third party in 93 cases. During the period under review, Thailand was involved in two new dispute settlement cases: one as a complainant, and the other as a respondent. In addition, it kept engaged in the new developments of a previous dispute brought by the Philippines against certain Thai customs and fiscal measures on cigarettes. In this case, in September 2019, Thailand appealed the second compliance panel report (Article 21.5 of the DSU)18, which was circulated on 12 July 2019.
Question 9
Please provide more information of the 18 cases and two new dispute settlement cases?
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Answer
Information on each of the 18 WTO dispute settlement cases involving Thailand either as complainant or respondent, including the two new cases, can be viewed at the following links:
Date of No. Name of dispute request for Complainant (s) Respondent (s) Web link for more information consultations 1. DS17: European 5 October Thailand European https://www.wto.org/english/tratop Communities - Duties on 1995 Communities _e/dispu_e/cases_e/ds17_e.htm Imports of Rice 2. DS35: Hungary - Export 27 March 1996 Argentina; Hungary https://www.wto.org/english/tratop Subsidies in respect of Australia; _e/dispu_e/cases_e/ds35_e.htm Agricultural Products Canada; New Zealand; Thailand; United States 3. DS47: Turkey - 20 June 1996 Thailand Turkey https://www.wto.org/english/tratop Restrictions on Imports _e/dispu_e/cases_e/ds47_e.htm of Textile and Clothing Products 4. DS58: United States - 8 October India; Malaysia; United States https://www.wto.org/english/tratop Import Prohibition of 1996 Pakistan; _e/dispu_e/cases_e/ds58_e.htm Certain Shrimp and Thailand Shrimp Products 5. DS122: Thailand - Anti- 6 April 1998 Poland Thailand https://www.wto.org/english/tratop Dumping Duties on _e/dispu_e/cases_e/ds122_e.htm Angles, Shapes and Sections of Iron or Non- Alloy Steel and H Beams from Poland 6. DS181: Colombia - 7 September Thailand Colombia https://www.wto.org/english/tratop Safeguard Measure of 1999 _e/dispu_e/cases_e/ds181_e.htm Imports of Plain Polyester Filaments from Thailand 7. DS205: Egypt - Import 22 September Thailand Egypt https://www.wto.org/english/tratop Prohibition on Canned 2000 _e/dispu_e/cases_e/ds205_e.htm Tuna with Soybean Oil 8. DS217: United States - 21 December Australia; Brazil; United States https://www.wto.org/english/tratop Continued Dumping and 2000 Chile; European _e/dispu_e/cases_e/ds217_e.htm Subsidy Offset Act of Communities; 2000 India; Indonesia; Japan; Korea, Republic of; Thailand 9. DS242: European 7 December Thailand European https://www.wto.org/english/tratop Communities - 2001 Communities _e/dispu_e/cases_e/ds242_e.htm Generalized System of Preferences 10. DS283: European 14 March 2003 Thailand European https://www.wto.org/english/tratop Communities - Export Communities _e/dispu_e/cases_e/ds283_e.htm Subsidies on Sugar 11. DS286: European 25 March 2003 Thailand European https://www.wto.org/english/tratop Communities - Customs Communities _e/dispu_e/cases_e/ds286_e.htm Classification of Frozen Boneless Chicken Cuts 12. DS324: United States - 9 December Thailand United States https://www.wto.org/english/tratop Provisional Anti- 2004 _e/dispu_e/cases_e/ds324_e.htm Dumping Measures on Shrimp from Thailand 13. DS343: United States - 24 April 2006 Thailand United States https://www.wto.org/english/tratop Measures Relating to _e/dispu_e/cases_e/ds343_e.htm Shrimp from Thailand 14. DS370: Thailand - 25 January European Thailand https://www.wto.org/english/tratop Customs Valuation of 2008 Communities _e/dispu_e/cases_e/ds370_e.htm Certain Products from the European Communities 15. DS371: Thailand - Customs 7 February Philippines Thailand https://www.wto.org/english/tratop and Fiscal Measures on 2008 _e/dispu_e/cases_e/ds371_e.htm Cigarettes from the Philippines
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Date of No. Name of dispute request for Complainant (s) Respondent (s) Web link for more information consultations 16. DS383: United States - 26 November Thailand United States https://www.wto.org/english/tratop Anti-Dumping Measures 2008 _e/dispu_e/cases_e/ds383_e.htm on Polyethylene Retail Carrier Bags from Thailand 17. DS507: Thailand - 4 April 2016 Brazil Thailand https://www.wto.org/english/tratop Subsidies concerning _e/dispu_e/cases_e/ds507_e.htm Sugar 18. DS573: Turkey - 5 December Thailand Turkey https://www.wto.org/english/tratop Additional duties on 2018 _e/dispu_e/cases_e/ds573_e.htm imports of air conditioning machines from Thailand
Page 40, Paragraph 2.29
The reports states that the ASEAN Agreement on Electronic Commerce, signed in 2019 and currently under the ratification process, aims to facilitate cross-border e-commerce transactions, contribute to creating an environment of trust in the use of e-commerce, and intensify e-commerce to drive inclusive growth. The Agreement covers provisions on paperless trading, electronic authentication and electronic signatures, online consumer protection, cross-border transfer of information by electronic means, online personal information protection, and the location of computing facilities, among others. Also, the ASEAN Digital Integration Framework was developed in 2018, followed by the ASEAN Digital Integration Framework Action Plan 2019-2025, which focuses on facilitating seamless trade, protecting data while supporting innovation, enabling seamless digital payments, broadening the digital talent base, and fostering entrepreneurship.
Question 10
What obstacles and new challenges that the ASEAN Agreement on Electronic Commerce may bring?
Answer
ASEAN Agreement on Electronic Commerce aims to coordinate and cooperate the development and use of e-commerce in ASEAN as well as facilitate cross-border e-commerce transactions in the region. However, due to the rapid technological changes, ASEAN might need to review the Agreement more frequently to keep up with the fast-changing technological development and explore additional areas of cooperation.
Page 44, Paragraph 2.42
It is stated that the industries in List 2 are permitted only if foreign investors obtain prior approval from the Cabinet and a licence from the Minister of Commerce (MoC). Moreover, they are subject to a foreign equity limit of 60% (up to 75% in some cases), and at least two fifths of the board of directors must be Thai nationals. List 2 industries include those concerning national safety and security, and those which have an impact on the arts, culture, tradition, local handicrafts, natural resources or the environment.
Question 11
Please specify more information on specific procedures and requirements for the licence? Is there any plan to release the barriers on board of directors for those foreign investors so as to encourage the foreign investment?
Answer
Foreigners who operate businesses under List 3 must obtain foreign business license (FBL) under FBA and sector-specific license under sectorial regulation (if any).
In granting permission to foreigners for the operation of businesses under the FBA, the Foreign Business Commission shall consider advantageous and disadvantageous effects on national safety
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To review the regulated businesses under the FBA, the regulation promulgation process is required to hold public hearings from stakeholders and sector regulators are held. The result based on pros and cons usually requires sufficient information for the Commission to remove the regulated businesses from the list.
Page 46, Paragraph 2.48
Thailand has a relatively complicated tariff structure. Non-ad valorem duties account for 8% of all tariff lines (860 out of 10,813). Specific duties are applied on 37 tariff lines (mainly petroleum oils; playing cards and tables designed for games; and undenatured ethyl alcohols). Alternate rates (the higher of an ad valorem rate and a specific duty) apply to 823 tariff lines. It was not possible to calculate ad valorem equivalents (AVEs) for a number of non-ad valorem tariffs.
Question 12
Is there any plan to simplify the complicated tariff structure?
Answer
Thailand revises its tariff structure on a regular basis and the tariff rates have been reduced according to the country's economic situation. Should there be any circumstances such as changes in economics, trade or investment which make tariff reductions deem appropriate or necessary, the tariff structure will be revised accordingly.
Page 61, Paragraph 3.49
Between 1995 and end-2019, Thailand initiated 84 anti-dumping cases, including 23 after 2015.22 It notified to the WTO that, as at 30 June 2020, 43 anti-dumping measures in the form of duties were in force on 12 types of products: 10 types of steel or steel alloys; citric acid; and inner tubes of rubber for motorcycles.23 Thirty of these measures were extensions of existing measures beyond their sunset period.
Question 13
Are there any relief measures for steel companies once the cases are initiated?
Answer
The relief measures shall be considered and granted case by case upon a request by interested parties.
Page 78, Paragraph 3.119
The Policy Committee of Special Economic Zones, under the Office of National Economic and Social Development Council, stipulates targeted industries for each Zone, i.e. each Zone has different targeted activities depending on local potential, limitations, and needs. The 13 targeted industries are: agriculture and fisheries, and related industries; ceramics; textile, garment, and leather industries; furniture manufacturing; gems and jewellery; medical equipment manufacturing; automotive, machinery, and parts; electrical appliances and electronics; plastic production; medicine production; logistics; industrial estates/zones; and tourism-related industries.
Question 14
Whether Traditional Chinese Medicine is included among the 13 targeted industries, especially in the area of medicine production?
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Answer
Yes, the manufacture of medicine is one of the 13 targeted industries for investment in the Special Economic Zones (SEZs). However, a proposed project will be granted investment incentives, subject to investment criteria stipulated by the Board of Investment (BOI), namely:
1) For conventional medicine projects, such promoted projects must achieve GMP standard prescribed by PIC/S within two years from the full operation start-up date.
2) For traditional medicine projects, such promoted projects must achieve GMP standard within two years from the full operation start-up date.
3) For the improvement of existing projects, existing machinery can be used in the promoted project, but its value shall not be included in the investment amount eligible for corporate income tax exemption.
An investment incentive for the manufacture of medicine is different from one SEZ to another. A proposed project on the manufacture of medicine established in Tak, Sakaeo, Nakhon Phanom, Chiang Rai, and Kanchanaburi SEZs will be granted investment incentives at a high level, such as the exemption of corporate income tax up to eight years (subject to cap which accounts for 100% of investment capital) and additional 50% corporate income tax reduction for five years. Whereas a proposed project on the manufacture of medicine established in the other five SEZs (Songkhla, Mukdahan, Trat, Nong Khai, and Narathiwat) will be granted incentives such as 3-year exemption of corporate income tax.
For more information, please visit https://www.boi.go.th/upload/content/BOI-A%20Guide_EN.pdf
Page 82, Paragraph 3.138
The report states that in September 2019, Thailand introduced "Thailand Plus", a stimulus package aimed at attracting foreign businesses to relocate and to expedite large-scale investment, and at strengthening workforce development. The new measures include an enhanced incentive package for projects worth at least THB 1 billion of investment, additional incentives for companies engaged in human resource development, and revised incentives to encourage corporations to set up science, technology, engineering, and mathematics (STEM) education or vocational training institutions.
Question 15
Please provide more details on "Thailand Plus" package, especially those additional incentives for companies engaged in human resource development? How will the government ensure foreign companies get the same treatment as the local companies?
Answer
Additional incentives include additional corporate income tax. Thailand Board of Investment's investment promotion scheme is on non-discriminatory basis.
Pages 82-83, Paragraph 3.140
Since the previous Review, there have been no major changes to the institutional framework for standards and conformity assessment. The Thai Industrial Standards Institute (TISI), under the Ministry of Industry, was established in 1969 under the Industrial Product Standards Act B.E. 2511 (1968). It is responsible for developing national standards (both voluntary and compulsory), product certification and registration, and participating in the standardization activities both at regional and international levels.
Question 16
Has TISI developed national standards (both voluntary and compulsory) on food? If so, what are the differences between the national standards on food developed by TISI and the food standards
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Answer
To comply with the strategy and policy of Ministry of Industry, the Thai Industrial Standards Institute (TISI) develops national standards concerning the processed agricultural products and processed food products only. All of them are voluntary standards and notified to the National Bureau of Agricultural and Food Standards (ACFS).
Question 17
What are the specific responsibilities of FDA in managing food safety?
Answer
Thai FDA is responsible for food safety for domestic consumption under Food Act B.E. 2522 (1979).
Page 83, Paragraph 3.142
For each standard in preparation, a technical committee, made up of the responsible national standards body and other interested parties, develops a draft standard. The draft standard is then circulated for comment, with final approval by the Industrial Products Standards Council. Thailand also notifies the draft standard to the WTO Committee on Technical Barriers to Trade for comments. Voluntary standards may be made compulsory by reference to technical regulations.
Question 18
Is this statement applicable to relevant standards and technical regulations on food safety?
Answer
Yes, similar process applies to the development of food safety standard under Food Act B.E. 2522 (1979). Once food safety standard has been developed, the draft food safety standard is then circulated for comments, public hearing, and final approved by the Food Committee instead of the Industrial Products Standards Council.
Question 19
Please explain ways to effectively guarantee the conformity and harmonization between the voluntary standards referred to and relevant technical regulations along with the development and revision of such provisions? Is there any possibility that related content of voluntary standards will be included into related technical regulations under revision?
Answer
In the process of developing a compulsory standard, the standard is developed as a voluntary standard first. The voluntary standard is regulated as a compulsory standard by the Industrial Products Standards Council's approval; thereafter, public consultation is held to welcome comments from stakeholders. After completing the above mentioned process, the compulsory standard is published and enter into force. Therefore, the content in voluntary standard and compulsory standard is not much different.
Page 89, Paragraph 3.171
Private traders with permission from the Excise Department may import or export tobacco or tobacco-related products. In 2014 and 2015, all cigarettes imported into Thailand were imported through the TTM but in 2016 the TTM imported only a quarter of all cigarette imports.
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Question 20
Please explain the sharp drop in cigarette imports through the TTM in 2016 and provide the import sources of other cigarettes.
Answer
According to the Tobacco Authority of Thailand Act B.E. 2561 (2018), Thailand Tobacco Monopoly has changed its name to Tobacco Authority of Thailand (TOAT) which is an SOE under the supervision of the Ministry of Finance. However, during 2014-16, the Excise Department did not issue any license to import cigarettes to the TOAT. All cigarettes sold by the TOAT are made in Thailand.
In 2016, Tobacco Authority of Thailand (TOAT) (former TTM) did not import other cigarettes for commercial. It imported cigarettes from sources for only experimental purpose. For example, calibration; the imported cigarettes were used for calibrating to the standard scores of the machine in order to compare the nicotine content and other contents with TOAT's cigarettes. These scores must be as accurate as the standard before launching the product to the market. The volume of cigarette imports in 2016 was 4,000 rolls in total from Japan and Germany.
Page 90, Paragraph 3.176
We can see from the report that the Government has been using public private partnerships (PPPs) to further reform and improve the performance of SOEs, in particular to spur private investment in state enterprises and improve the infrastructure of the country. The Public Investment in State Undertakings Act (PISU Act), 1992, was replaced by the PISU Act, 2013, which requires the PPP Committee to publish a PPP Strategic Plan that is consistent with the National Economic and Social Development Plan (NESDP). In 2015, the first PPP Strategic Plan, covering the period 2015-19 and based on the NESDP No. 11 was issued. In 2017, the second PPP Strategic Plan, covering the period 2017-21 and based on the NESDP No. 12, was published. The focus of PPP projects was expanded from roads and rail, to cover new sectors such as airports, education, and health.
Question 21
Please provide more details on how PPPs improve the performance of SOEs, including the second PPP Strategic Plan.
Answer
On 11th March 2019, Thailand has established a new PPP Act, the Public Private Partnership Act B.E. 2562 (2019) (the PPP Act 2019) (replaced the former PPP Act, the Public Investment in State Undertakings Act B.E. 2556 (2013) (the PISU Act 2013).
Section 12 of the PPP Act 2019 stipulates that the Public-Private Partnership Project Delivery Plan (the PPP Delivery Plan) shall be prepared in a manner consistent with the Master Plans on the Infrastructure and Social Development under the National Strategy 2018 - 2037 (the Master Plan) as prepared by the Office of the National Economic and Social Development Council. Undertakings under this Act shall also be carried out for the purpose of achieving goals of PPP, including the consistency with the PPP Delivery Plan.
In the PPP Policy Committee (the Committee) meeting on 15th April 2020, the Committee approved the PPP Delivery Plan 2020-2027, which has been already published on the SEPO's website at http://www.ppp.sepo.go.th/tinymce/plugins/filemanager/thumbs//PPP%20Delivery%20Plan%202 020-2027_Mar2020%20(EN).pdf.
The PPP Delivery Plan 2020-2027 will play a significant role in setting out a PPP policy framework, which creates clarification for both public and private sectors, including the prioritization of PPP projects. The PPP Delivery Plan also helps draw private parties' attention, and attracts them to jointly invest in PPP projects under the PPP Delivery Plan. This scheme can help reduce government budget/debt constraints, and increase the efficiency on the provision of public services by leveraging know-how, capability, expertise and innovation of private parties.
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Moreover, PPP also helps allocate risk from a state agency to private sector in the provision of infrastructure and public services
Page 96, Paragraphs 3.196&3.197
Question 22
Please specify which national authority is excluded from the scope of the new Trade Competition Act? How to deal with the abuse of administrative power by these national authorities to exclude or restrict competition?
Question 23
Please explain which authority is responsible for the interpretation of the provisions on the exemption of SOEs? What are the specific exemption procedures, and are there any specific cases of exemption?
Answer for Q22-Q23
According to Section 4 of the Trade Competition Act of 2017, the Act shall not apply to the operation of the followings:
1) central, regional, or local administrations
2) state-owned enterprises, public organizations, or other government agencies, provided that they conduct their undertakings according to the law or resolutions of the Cabinet which are necessary for the benefit of maintaining national security, public interest, the interests of society, or the provision of public utilities
3) groups of farmers, cooperatives, or cooperative groups recognized under the law and having the aim in their business operations to benefit the vocation of farming
4) businesses that are specifically regulated under other sectoral laws having jurisdiction over competition matters.
Therefore, national authorities that will be excluded from the enforcement of the scope of the new Trade Competition act shall be in accordance with the Section 4 of the Trade Competition Act of 2017.
In order to deal with the abuse of administrative power by these national authorities to exclude or restrict competition, the Trade Competition Act of 2017 empowers the Trade Competition Commission to have powers and duties to propose opinions and recommendations to the Minister and the Cabinet with regard to the government's policies on competition (Section 17 (11)), as well as to give recommendations to government agencies on rules, regulations, or orders which are obstacles to competition and causing obstruction, restriction, or reduction of competition, and that may result in unfairness between business operators (Section 17 (12)); thus, this will be the approach that TCC and OTCC can address the abuse of administrative power conducted by national authorities to exclude or restrict competition.
According to section 4(2) of the Trade Competition Act of 2017, the Act shall not apply to the operation of state-owned enterprises, public organizations, or other government agencies, provided that they conduct their undertakings according to the law or resolutions of the Cabinet which are necessary for the benefit of maintaining national security, public interest, the interests of society, or the provision of public utilities. Thus, the authority that is responsible for the interpretation of the exemption of competition law enforcement to SOEs is the Trade Competition Commission (TCC) pursuant to the section as mentioned above. Furthermore, the State Enterprise Policy Office (SEPO) will play an important role in identifying and categorising the operations of the SOEs which are in accordance with the law or resolutions of the Cabinet for the benefit of maintaining national security, public interest, the interests of society, or the provision of public utilities for the effective enforcement of competition law.
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As of now, there is no specific exemption procedures and cases. However, OTCC will consider the exemption of competition law enforcement pursuant to the Trade Competition Act of 2017 case by case, as well as will focus on analysing and identifying the operations of SOEs whether or not their undertakings are in accordance with the law or resolutions of the Cabinet necessary for the benefit of maintaining national security, public interest, the interests of society, or the provision of public utilities.
Pages 96-97, Paragraphs 3.198, 3.199, 3.200
Question 24
Please provide information on the staffing, rough annual budgets, incomes from service fees and operating incomes of the TCC and the OTCC? How do the TCC and the OTCC ensure independence and impartiality in their acts of carrying out business activities and obtaining operating incomes?
Answer
Please find the requested information as follows:
Staffing: 104 Officials
Rough annual budgets: 200,000,000 THB
Operating Incomes: 740,000 THB
Others: 2,260,000 THB.
In terms of ensuring independence and impartially of carrying out business activities and obtaining operating incomes of the TCC and OTCC, we have the Internal Audit Division that will monitor and check this issue. Also, the OTCC will be checked its expenditure by the State Audit Office of the Kingdom of Thailand (SAO) once a year for the transparency of using annual government statement of expenditure by the OTCC.
Page 99, Paragraphs 3.206, 3.207, 3.208
Question 25
Please explain whether an approval may be requested from the TCC in advance for a merger which may substantially reduce competition? What measures will the TCC take if such a merger, upon completion, results in a loss of market competition?
Answer
According to the Trade Competition Act B.E. 2017, is it necessary for the company to grant an approval from the Office of Trade Competition Commission as written in the law. Referring to the Section 54 and 55 of the Trade Competition Act B.E. 2560 (2017) prohibit any undertaking to enter into an agreement with any other undertakings to conduct a practice that monopolizing, reducing competition, or limiting competition by defining natures of prohibited practiced. Therefore, any businesses who seeking for merge the business is require approval from the OTCC.
Pursuant to Section 51 Para (2), any business operator planning to conduct a merger which may cause a monopoly or result in a dominant position in a market, shall seek permission from the Commission. By Section 52, the Commission shall complete the procedure within 90 days from the request's receipt date. In case by necessity, such consideration is not completed within the period, an extension of not more than 15 days shall be given and the reasons and necessity for an extension of the consideration shall be recorded. The key consideration to permit the merger is based upon recognition of valid business-related necessity, benefit in supporting a business operator, not causing severe damage to the economy, and no impact on the essential benefits for consumers as a whole.
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Page 99, Paragraph 3.209
It reports that during previous Reviews, enforcement of the old Act was considered weak due to legislative and institutional shortcomings. In order to enhance effectiveness in restraining violations, the new Act empowers the TCC to issue administrative penalties in response to violations (Table 3.25). However, only the Intellectual Property and International Trade Court is authorized to order criminal penalties. The TCC has the power to settle cases with the alleged business operators. It may also order remedies to redress market conditions affected by a merger or competition violation. The new Act does not prescribe a leniency programme as such. However, under Article 79 paragraph 3, it does authorize the TCC to impose a lower fine for a whistleblower, provided that s/he follows the criteria, methods, and conditions prescribed by the Commission; these are yet to be approved.
Question 26
Why only the Intellectual Property and International Trade Court is authorized to order criminal penalties? Is there any plan to expand the scope to other courts for the sake of facility and efficiency?
Answer
Intellectual Property and International Trade Court is authorized to order only criminal cases while Administrative Court is authorized to handle the administrative cases. Pursuant to Section 79, the Commission shall have the power to settle cases. In executing such power, the Commission may assign the Secretary-General to act on the Commission's behalf. When the alleged person pays the fine for the amount of settlement within the required period, it shall be deemed that the case is terminated under the provisions of the Criminal Procedure Code. The amount of fine to settle cases shall be determined according to criteria, methods, and conditions prescribed in the Commission's notification.
Pursuant to Section 85, in considering the issuance of an order to impose an administrative fine, the Commission shall consider the seriousness of the offense first. In a case where the person subject to an administrative fine does not pay that fine, the provisions related to an administrative order's execution under the Law on Administrative Procedure shall apply mutatis mutandis. In a case where there is no officer to execute such an order, or there is a person but he or she is unable to proceed with the execution of the order, the Commission shall have the power to file a lawsuit in an administrative court in order to enforce the payment of the fine. In this case, if the administrative court views that such an order for the payment of the fine is lawful, the administrative court shall have the power to consider and make a judgment and enforce seizure or take hold of properties to sell by auction to pay for the fine imposed. So far, Thailand has no plan to expand the scope to other courts for the sake of facility and efficiency.
Question 27
Is there any good practice sharing on implementing of the enforcement policies? What are the main barriers now?
Answer
The Trade Competition Act B.E. 2017 is intended to create a framework of rules for doing business in a way that promotes free and fair-trade competition and in manner that is most beneficial to consumers. It is aimed at enforcing the law in the most efficient and prompt manner, as well as preventing practices that violate the law and creating trust in the private business sector through promoting good governance to enhance and strengthen a stable and sustainable Thai economy.
Page 103, Paragraph 3.222
Domestic improvements during the review period included the establishment of a subcommittee on enforcement against IP infringement (led by a Deputy Prime Minister), the amendment of the Trademark Act to provide for the registration of sound marks, and the amendment of the Copyright and Computer Crime Acts to better address online IP infringement. Thailand made considerable
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Question 28
Please provide details of the registration of sound marks, including its procedures and requirements. What is the most difficult thing in terms of registration?
Answer
Where a trademark application is of a sound mark or composed of sound, the applicant is required to provide a clear description of the sound, accompanied by a clear audio record of the sound (e.g. in a USB drive). The applicant also needs to indicate the type of the sound, i.e. whether it is a human sound, an animal sound, a song/musical sound or any other type of sound. The applicant may also submit a musical notation, sound-graph or other representation of the sound to support the application.
There are some challenges in the examination of application for the trademark which is a combination of word and sound (as opposed to sound only).
Page 104, Paragraph 3.225
It reports that Thailand, like most middle-income countries, is a net IP-importing country (Chart 3.3). Since 2016, the negative trade balance on IP licence fees has continued its long-term trend, reaching USD 5 billion in 2018.
Question 29
It is notable that Thailand made considerable efforts towards streamlining its trademark and patent examination processes. Will these efforts be applicable to foreign companies?
Answer
The streamlining of our trademark and patent examination processes will be beneficial to all.
Question 30
As a net IP-importing country, please specify the main trading partners, and in what areas or fields does Thailand use those IPs? Is there any plan to issue preferential policy towards foreign countries to strengthen the international cooperation?
Answer
Thailand places importance on cooperation in the area of IP with foreign countries to ensure an IP-friendly environment beneficial to trade and investment in the country.
Question 31
What measures will be taken towards the human resources and other relevant aspects to strengthen its capacity for independent innovation?
Answer
Some examples of the measures to strengthen the capacity for independent innovation are as follows: 1) The Ministry of Higher Education, Science, Research and Innovation was established in May 2019 with an aim to ascertain harmonized aspects of education, R&D, science, and innovation. In particular, The Ministry plays a significant role on innovation-driven developments of the country by enhancing the inter-connectivity of various functions of science, research, education, and innovation. 2) The Department of Intellectual Property established the IP Innovation Driven Enterprise Center (IP IDE Center) in 2017. The Center, which is located in the Department's building,
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Page 106, Paragraph 3.233
Since the previous TPR, Thailand has signed and ratified WIPO's Marrakesh VIP Treaty, which entered into force on 28 April 2019, and joined the Madrid Protocol in 2017. Thailand is a member of WIPO and party to a number of its treaties, such as the Patent Cooperation Treaty, the Paris Convention for the Protection of Industrial Property, and the Berne Convention for the Protection of Literary and Artistic Works. It has yet to accede to the WIPO Copyright Treaty (WCT) or the WIPO
Performances and Phonograms Treaty (WPPT). According to the authorities, preparations for these are underway.
Question 32
Please provide an update as to Thailand's plans with respect to joining the WCT and WPPT.
Answer
Thailand is amending the Copyright Act B.E. 2537 (1994), which consists of two phases:
The first phase includes the preparation for Thailand's accession to the WCT. The draft amendment for this phase was approved by the Cabinet in September 2020 and is now forwarded to the Parliament for consideration. Upon the completion of the amendment, Thailand will be ready to join the WCT as approved by the National Legislative Assembly in December 2018.
The second phase covers Thailand's preparation for the accession to the WPPT. The Department of Intellectual Property is currently working on the draft amendment of the Copyright Act for this phase.
Question 33
On 28 April 2020, Beijing Treaty on Audio-visual Works came into force officially after eight years' preparation and ratification. Please clarify Thailand's plans and timing toward acceding to the Treaty.
Answer
Despite not being in the top priority at present, Thailand has consistently placed importance on the Beijing Treaty on Audio-visual Performances.
Page 108, Paragraph 3.243
The situation regarding compulsory licences remained unchanged during the review period. Of the compulsory licences for government use granted for seven medicines in 2006-08 by the Ministry of Public Health, only one remains in use: the licence on a combined formulation of Lopinavir and Ritonavir, which covers up to 250,000 patients entitled to essential medicines under three national health security schemes, and is due to expire in 2021, after an extension in 2010. The other licences have either expired, or are effective only where an essential need for these medicines exist.
Question 34
Whether Traditional Chinese Medicine is included in the seven medicines mentioned in this part? Whether Traditional Chinese Medicine is included in the national health security Act and whether health insurance in Thailand covers Traditional Chinese medicine treatment ?
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Answer
The seven medicines mentioned in this part were chemical-based. For National Health Security Act, please visit http://eng.nhso.go.th/view/1/National_Health_Security_Act_B.E.2545/EN-US.
Pages 108-109, Paragraph 3.246
The Regulation entered into force in September 2019, and imposed tobacco plain packaging and health warning requirements from 8 December 2019. Thailand is thus the first country in Asia to require compulsory standardized packaging for tobacco products, including cigarettes. Tobacco packaging must bear the manufacturer's name in a standardized font, in either English or Thai, display packaging in the standard colour pantone cool grey 2 C, and include health warning photos on both sides of the cigarette box, which must extend to 85% of the packet's area. The Regulation sets an administrative fine of THB 40,000 (around USD 1,300).
Question 35
How do relevant authorities protect the trademarks having been used on the packages of tobacco products when implementing the policy of compulsory standardized packaging?
Answer
Registered trademarks are protected in accordance with the Trademark Act B.E. 2534 (1991). Any person who counterfeits or imitates a trademark will be liable for both criminal offences and civil remedies. Thailand continues to put considerable efforts on IPR enforcement including trademark rights for all goods including tobacco products.
Question 36
In 2017, Thailand promulgated the Tobacco Products Control Act (TPCA B.E. 2561). Later, the Ministry of Public Health issued the Regulation concerning Criteria, Methods and Conditions of Tobacco Product and Cigarette Packaging, which entered into force in 2019. How does Thailand evaluate the effectiveness of its tobacco control? Thailand is the first country in Asia to execute compulsory plain packaging for tobacco products, and require that health warning photos shall take at least 85% of the cigarette packet on the front side. How do cigarette importers and domestic producers react to such measures? What are the measures that Thailand is going to take for further tobacco control?
Answer
How does Thailand evaluate the effectiveness of its tobacco control?
Thailand has stronger monitoring in retail shops, manufacturing sites, and warehouses of Tobacco Industry. Generally, Department of Disease Control uses studies conducted by Tobacco Control Research and Knowledge Management Centre for policy effectiveness evaluation. For more information, please visit http://www.trc.or.th/en/.
How do cigarette importers and domestic producers react to such measures?
Importers and domestic tobacco producers have fully complied with the standardised packaging measures and have not had any complaints.
What are the measures that Thailand is going to take for further tobacco control?
In 2021, Thailand will change the health warning photos on cigarette packaging.
Page 117, Paragraph 4.18
Thailand maintains 23 tariff quotas (TQs) covering 128 tariff lines at the HS eight-digit level; all are agricultural products (Section 3.1.2.4). All quotas are global quotas. To import 21 out of
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23 agricultural products (other than cane or sugar, or unmanufactured tobacco and tobacco leaves) subject to TQ arrangements, importers must obtain certificates from the Department of Foreign Trade under the Ministry of Commerce. To import cane or sugar, a certificate from the Office of Cane and Sugar Board under the Ministry of Industry is required; and to import unmanufactured tobacco and tobacco leaves, a certificate from the Excise Department under the Ministry of Finance is required.
Question 37
Please explain the reasons why certificates from relevant authorities are required to import cane and sugar or tobacco and tobacco leaves?
Answer
Tobacco and tobacco leaves: Because Thailand would like to control tobacco production and consumption of tobacco. Therefore, tobacco production and tobacco importation into the Kingdom must be submitted for permission under the Excise Tax Act B.E. 2560 (2017).
Sugar: Ministry of Commerce authorizes the Office of Cane and Sugar Board (OCSB) to issue an import license of sugar because the OCSB is a Thai government agency which has technical expertise and specialist in supply chain management of Thai Sugar industry. (DFT)
Page 118, Table 4.4
…"Unmanufactured tobacco; tobacco leaves. Tariff quota quantity as scheduled (tonnes) is 6,435; In-quota imports during period (tonnes) is 228; Fill rate (%) is 3.5"…
Question 38
As shown in the table, in "Unmanufactured tobacco; tobacco leaves", tariff quota quantity as scheduled (tonnes) is 6,435; in-quota imports during period (tonnes) is 228; fill rate (%) is 3.5. Please explain why the fill rate is only 3.5%
Answer
Because a restructuring of an excise tax in 2017 caused a decrease of domestic cigarette sales, consequently resulting in a decline of domestic cigarette production by Tobacco Authority of Thailand in following years. Therefore, the tobacco leaves produced domestically in 2019 were sufficient for domestic production.
Page 119, Paragraph 4.23
Thailand reserved its right to take special safeguard (SSG) action on 55 HS02 eight-digit agricultural items, such as milk, potatoes, onions, garlic, coconuts, coffee, tea, peppers, maize, rice, copra, soya bean oil, crude palm/coconut oil, sugar, non-alcoholic beverages, tobacco, and raw silk (Section 3.1.5.2). Thailand notified to the WTO that it did not invoke SSG provisions under Article 5 of the WTO Agreement on Agriculture during the review period.
Question 39
Please clarify what specific special safeguard action to be taken on 55 HS02 eight-digit agricultural items? What if they are contradictory with those provisions of WTO Agreement on Agriculture?
Answer
Thailand has not yet imposed Special Safeguard measure under Article 5 of the WTO Agreement on Agriculture on such products.
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Page 134, Paragraph 4.85
The authorities stated that the Plan sets specific targets in terms of minimum annual growth rates from 2019 to 2037, for the following indicators: industrial sector's GDP no less than 4.5%; rate of investment in the industrial sector no less than 10%; export value no less than 8%; and total factor productivity no less than 2%.
Question 40
Please specify more information on statistics of the rate in respective industrial sectors.
Answer
The specific targets of the Action Plan on Industrial Development including annual industrial GDP growth, export growth and total factor productivity were set to conform with development target specify in the 20-year National Strategy (2018 – 2037) and the 12th National Economic and Social Development Plan (2017 – 2021) taking in to account of the past data gathered each year.
Page 135, Paragraph 4.93
In September 2019, the BOI launched a wide range of investment promotion measures, such as additional tax incentives to education and vocational training institutes specializing in science, technology, engineering, and mathematics, with a view to enhancing human resource development. The authorities stated that foreign and Thai investors are granted the same incentives for eligible activities.
Question 41
How to ensure both foreign and Thai investors getting the same incentives for eligible activities? Are there any official policies or relevant legislation?
Answer
Thailand Board of Investment's investment promotion scheme is on non-discriminatory basis.
Page 139, Paragraph 4.108
Under current legislation, foreign ownership of commercial banks is capped at 25% of the bank's shares, and the number of foreign directors may not exceed one quarter of the total. Nevertheless, the BOT can, on a case-by-case basis, increase the statutory cap on foreign ownership to 49% and the limit on foreign directors to one half of the total. Furthermore, the Minister of Finance, upon recommendation of the BOT, has the power to authorize foreign ownership of more than 49% in a commercial bank, where this is deemed necessary to improve the financial performance or strengthen the security of any financial institution, or the financial system in its entirety. The last time the Minister of Finance granted such authorization was in 2013.
Question 42
Under what circumstances, will the BOT and the Minister of Finance raise the statutory cap on foreign ownership and foreign directors?
Answer
Under the Financial Institutions Business Act (FIBA), foreign ownership limits may be relaxed only in the case that expanding the foreign ownership cap will improve the financial performance or to strengthen the stability of any financial institutions or the financial system. This includes, but is not limited to, situations where the bank's financial position is weak and existing shareholders are not willing to increase bank's capital.
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Regarding the statutory cap on foreign directors, the Ministry of Finance and the Bank of Thailand apply the same rationale as the statutory cap on foreign ownership. When the proportion of foreign ownership has been relaxed, therefore, the statutory cap of foreign directors will be further relaxed in the same proportion.
Page 151, Paragraph 4.170
No foreign equity limits are applied to ground-handling services as long as all legal and regulatory requirements are met. Foreign companies wanting to provide ground-handling services are required to obtain approval from the Foreign Business Committee, and a business permit from the Department of Business Development under the Ministry of Commerce, then they will need the CAAT to certify their operation.
Question 43
At present, are there any foreign companies providing ground-handling services in Thailand? What are the specific legal requirements to get the permit for foreign companies? Are there similar requirements in other services sectors? Is there any plan to remove these additional requirements for foreign companies so as to encourage foreign investment?
Answer
Ground-handling services fall into List 3 (21) of the Foreign Business Act (B.E. 2542). No foreign equity limits. Approval required from the Foreign Business Committee and permits granted by the Director-General of the Department of Business Development (DBD). The DBD granted the permit to some foreign companies to operate the aircraft maintenance checks and inspection.
In granting permission to foreigners for the operation of businesses under the FBA, the Foreign Business Commission shall consider advantageous and disadvantageous effects on national safety and security, economic and social development of the country, public order or good morals, national values in arts, culture, traditions and customs, natural resources conservation, energy, environmental preservation, consumer protection, sizes of undertakings, employment, technology transfer and research and development.
The Ministry of Commerce by Foreign Business Commission reviews categories of businesses in the Lists annexed to the Act annually. Since 2013, the Ministry of Commerce has issued 4 Ministerial Regulations Prescribing Service Business Not Subject to Application for Foreign Business Permission covering 40 business categories such as securities business under the law on securities and securities exchange, insurance business under the law on insurance, financial institution business, and representative office/regional office.
To review the regulated businesses under the FBA, the regulation promulgation process is required to hold public hearings from stakeholders and sector regulators are held. The result based on pros and cons usually requires sufficient information for the Commission to remove the regulated businesses from the list.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
Page 6, Paragraph 3.6
The 10 targeted industries have been categorized into two groups as "First S-Curve Industries" - the upgrading of five existing industries, and "New S-Curve industries" - the development of new high-technology and innovative industries.
Question 1
Whether the TCM is included in the New S-Curve industries, especially in the area of Medical and Comprehensive Healthcare?
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Answer
The Ministry of Industry is a key agency to drive target industries. The comprehensive medical industry is one of the future industries. In term of medical services, the Ministry of Public Health has prepared the strategy to develop Thailand as a medical hub. One of strategies addressed is a strategy to develop Thai traditional and alternative medical services. Moreover, the Ministry of Public health has provided TCM (traditional Chinese medicine) to serve the people.
Page 19, Paragraph 3.69
In 2016, the National Committee on Intellectual Property Policy adopted the 20-Year (2017-2036) IP Roadmap in order to guide the development of the country's IP system and to ensure that the IP system is aligned with the country's shift towards "Thailand 4.0".
Question 2
Please share more information on the Intellectual Property Policy adopted the 20-Year (2017-2036) IP Roadmap.
Answer
Thailand has developed the IP system in accordance with the six areas in the IP Roadmap.
For IP creation and IP commercialization, the DIP and relevant government agencies including the National Innovation Agency and the Ministry of Higher Education, Science, Research and Innovation have been encouraging and promoting R&D and creation and supporting IP commercialization to all sectors. With regard to IP Protection, Thailand has also been improving the standard and timeliness of IP protection, including by amending laws and regulations and utilizing the IT system to streamline and enhance the efficiency of the IP registration process.
For IP Enforcement, Thailand places much importance on integrating works of relevant IP enforcement agencies to ensure the efficient enforcement operations, using both voluntary and legal mechanisms to enforce IP rights, and raising IP awareness to the general public.
With regard to GIs, this area is to encourage the inclusivity of local communities in the IP system through GIs and to ensure economic value and importance of GIs to local community members, local producers and consumers. The efficiency of GIs registration system will also be developed.
With regard to GR/TK/TCEs, this area aims to put in place an appropriate protection of GR/TK/TCEs including the principles of benefit-sharing and prior informed consents. This may, among others, include the development of relevant laws, regulations, and databases.
OTHER QUESTIONS
Question 1
In 2019, the State-Owned Enterprise Development Act and the Public Private Partnership Act came into force. Are the two acts applicable to the tobacco industry? What are the implications for state-owned enterprises in the tobacco industry in Thailand? As per the Tobacco Authority of Thailand Act (B.E. 2561 (2018)), TOBACCO AUTHORITY OF THAILAND (TOAT) was established in May 2018. What is the relationship between TOAT and THAILAND TOBACCO MONOPOLY (TTM)? Under the tobacco monopoly system, what are the specific mandates of TOAT and TTM?
Answer
The State-Owned Enterprise Development Act, B.E. 2562 (2019) is related to all SOEs that are defined by this Act. A state agency under the Public Private Partnership Act, B.E. 2562 (2019) (the PPP Act 2019) must be related to infrastructure and public services specified by the Act. However, the tobacco is not included under this Act. Thus the tobacco industry may not be within the scope of the PPP Act 2019.
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As the tobacco can cause health effects to people, the Thai government has to control this issue by ruling authority to the SOE in the tobacco industry.
Thailand Tobacco Monopoly (TTM) was the SOE under Ministry of Finance but it was not a juristic person. In 2018, the TTM changed its name to Tobacco Authority of Thailand (TOAT). The TOAT is still the SOE under Ministry of Finance but its status has changed to be the juristic person. At this time, the government fully authorises the TOAT to produce the cigarettes and many types of tobaccos. However, the tobacco monopoly system does not include marketing.
Question 2
Please specify more information on the developments in international cooperation in IPR enforcement.
Answer
In terms of international cooperation in the area of enforcement, Thailand has been cooperating with our foreign counterparts, such as the US, the EU, China, and the UK in exchanging knowledge, experiences and best practices in several seminars and workshops related to IPR enforcement. Thailand has also actively engaged with WIPO member states in the Advisory Committee on Enforcement at WIPO.
Question 3
Is there any private lawsuits filed by the Consumer Protection Commission, or any association or foundation recognized by the Commission under the law on consumer protection require consumers' authorization? How to distribute the compensation obtained to the consumers?
Answer
Yes, there are private lawsuits filed by the Consumer Protection Board that such legal proceedings will be beneficial to consumers as a whole. Besides, if the entrepreneurs and consumers are unable to reach an agreement, Office of the Consumer Protection Board (OCPB) will file without debar the consumer rights for his or her own litigation. In part of handling consumer complaints concerning a consumer's claim for compensation, the process is as follows:
1) OCPB provides a mediation process for consumers
2) The Consumer Protection Board approves litigation of the civil case on behalf of consumers by the OCPB by virtue of the Consumer Protection Act, B.E. 2522 (1979).
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CHINA - FOLLOW-UP QUESTIONS
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Page 61, Paragraph 3.47
The legislation on anti-dumping and countervailing measures was amended on 22 May 2019, and the amendment came into effect on 18 November 2019. Thailand will notify the WTO once the translation into English is completed. The amendment clarifies certain issues, including anti-circumvention provisions.
Question 1
Does this amendment involve other issues in addition to anti-circumvention?
Answer
The amendment to the Anti-Dumping and Countervailing Act does not affect the Antidumping and Countervailing procedures which are conducted in compliance with the ADA and ASCM.
The main novelty is to introduce the new chapter related to the Anti-circumvention. This new chapter covers the factors needed to be considered and the investigation process. Investigation shall be concluded within nine months and can be extended to another three months. If circumvention is found, Anti-dumping duties not exceeding the residual anti-dumping duty may be extended to the imports from companies which circumvent the measure in force.
Question 2
When will the English translation be completed? Has Thailand initiated anti-circumvention investigations per the amended law?
Answer
The English translation is still being processed. Thailand has not yet initiated any Anti-circumvention investigation.
Page 62, Paragraph 3.49
Between 1995 and end-2019, Thailand initiated 84 anti-dumping cases, including 23 after 2015. As of 30 June 2020, 43 anti-dumping measures in the form of duties were in force on 12 types of products: 10 types of steel or steel alloys; citric acid; and inner tubes of rubber for motorcycles. Thirty of these measures were extensions of existing measures beyond their sunset period. Actions mostly affected products originating in China (11), Chinese Taipei (5), the Republic of Korea (5), and Vietnam (5).
Question 3
China noticed that since this year, Thailand has initiated four anti-dumping cases involving Chinese products: flat hot dip galvanized of cold rolled steel, tinplate, tinfree, and biaxially originated polypropylene (BOPP) film. The number of cases surged compared with the situation a few years ago. What is the comment from Thailand? What are the main reasons? Does this mean that Thailand trade relief policy has been changed to some extent?
Answer
Thai investigating authority initiates the AD investigation, in compliance with Article 5 of the Anti-Dumping Agreement (ADA), based on the facts and information that there is sufficient evidence of dumping, injury, and causality, as well as other matters to justify the initiation of an investigation. An Anti-dumping measure is just a measure of protection for domestic industry against the unfair trade practices.
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Page 112, Paragraph 4.1
Growth rates of the agriculture, forestry and fisheries sector have been volatile, ranging from -6.5% in 2015 to 5.5% in 2018, and falling to 0.1% in 2019 .
Question 4
What caused volatile growth rate of the agriculture, forestry and fisheries sector? Has the Thai government issued policies and measures to stabilize the agriculture, forestry and fisheries sector? If so, please specify.
Answer
The volatile growth rate in agriculture, forestry and fisheries sectors was mainly due to a decrease in important crop yields which resulted from inclement weather (drought and flood problems) during 2014-2020.
To stabilize the agriculture, forestry and fisheries sectors, the Thai government has issued policies targeting the improvement of water management to mitigate damages for the agricultural sector. This includes the expansion of irrigation areas, efficiency improvement for the irrigation system and also the promotion of water reservoir in farms in non-irrigated areas.
The Ministry of Agriculture and Cooperatives (MOAC) has adopted the agricultural management policy with "Market-driven production" strategy in major agricultural products such as rice, rubber, palm oil, fruit, fishery and livestock. Moreover, farmers are encouraging to use technology and innovation along with modern agriculture to plan the production appropriately and accordingly to the market demand. This policy has been done jointly between the Ministry of Agriculture and Cooperatives and the Ministry of Commerce (MOC), under the concept of "MOAC producing / MOC marketing"
To be more specific, in production side, farmers will encourage to form collaborative farm to lead to the proper use of technology and innovation in production. The government has issued policies that support the enhancement of production capacity through the use of technology and know-how such as:
1) The creation of learning centres for agricultural production efficiency
2) The introduction of targeted management of agricultural areas through the use of Agri-map to analyse the potential and suitability of the area to guide farmers for decision making on the production of crops, livestock and fisheries that are suitable to the areas
3) The establishment of Agri-Tech and Innovation Centre (AIC) in each province to be a centre for promoting the use of technology and innovation in production for farmers and also a training centre and knowledge transfer centre for start-ups and young smart farmers
4) The encouragement to grow alternative crops/plants that require less water as well as the incubation of Smart Farmers.
The MOAC also focus on developing agricultural products that are unique with quality standard and traceability.
In marketing side, the MOAC facilitate access between producers and consumers through increasing the online marketing channels for agricultural products by using online platforms such as LAZADA, Shopee, as well as online agricultural products websites. In addition, business matching between farmers groups, co-operatives, community enterprises and modern trade malls such as Makro and Lotus is promoted.
Page 112, Paragraph 4.4
In 2017, ...... with an average farm size of 4 ha (up from an average of 3.1 ha in 2013).
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Question 5
What is the main reason leading to the expanded farm size? Has the Thai government issued policies and incentives to expand farm size?
Answer
According to Center of Agricultural Information, Office of Agricultural Economics under the Ministry of Agriculture and Cooperative, the average farm size of Thailand during 2013-2019 are as shown in the following table:
Farm size Year Rai Hectare 2013 25.28 4.045 2014 25.26 4.042 2015 25.28 4.045 2016 25.26 4.042 2017 25.22 4.035 2018 25.28 4.045 2019 25.26 4.042
Source: Center of Agricultural Information, Office of Agricultural Economics, Ministry of Agriculture and Cooperatives (website: www.oae.go.th).
OTHER QUESTIONS
Question 1
China noticed that Thailand initiated safeguard measure investigation on aluminum foil on 1 October this year. Please explain what is the consideration for initiating such an investigation?
Answer
Based on a preliminary assessment of all relevant factors, in compliance with the Agreement on Safeguards (SG Agreement), Thai investigating authority found the prima facie evidence to initiate and conducts a safeguards investigation to determine whether Aluminum Foil are being imported into Thailand in increased quantities and is causing serious injury to the domestic industry.
Question 2
What is the respective proportion of pre-arrival processing and e-bill payment in practice in Thailand.
Answer
The proportion of e-bill payment during Fiscal Year 2019-2021 is demonstrated in the following table:
THB billion e-payment Total e-payment Share of Total Fiscal year EDC e-Pay (Direct Bill Pay (EDC + e-payment payment debit) e-payment) (%) 2019 5,869.80 332,395.09 520.51 338,785.40 591,839.11 57.2 2020 11,619.81 287,450.41 6,489.35 305,559.58 485,303.55 63.0 2021 (Oct-Dec 2020) 4,079.13 79,790.89 2,614.08 86,484.10 125,195.44 69.1
Source: Customs Department.
Question 3
Has Thailand announced the time that each process will take from cargo arrival to release? If so, please specify. What bottlenecks have Thailand found in customs clearance through TRS? What are the differences between the TRS conducted in October 2020 and the previous ones?
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Answer
Thailand has no announcement about the time that each process will take from cargo arrival to release. Thai Customs has conducted the national Time Release Study base on the WCO TRS guidelines. The latest Time release Study was conducted in 2018, reviewing importation/exportation process at Suvarnabhumi Airport Cargo Clearance Customs office (by air) and Laem Chabang Port Customs Office (by sea). For the bottleneck, Thailand has found that the time spent in customs inspection process is very short due to fully electronic customs processes. While for imported goods, the leak time mostly happened by the action of importers to delay their pick-up process from port, and some happened by the port authority. And for the exported goods, the port authority is the main cause of leak time as goods have to wait for loading into aircraft/ship for several hours to days. However, Thailand does not have TRS information conducted in October 2020. Thai Customs plans to conduct Time Release Study at Suvarnabhumi Airport Cargo Clearance Customs office and Laem Chabang Port Customs Office in 2021.
Question 4
China noticed that for mandatory TISI certification, Thailand has not authorized any third-party testing and certification institution, and the whole process is done by domestic ones. Considering the active role of mutual recognition of certification and testing results in promoting trade facilitation, please explain the main considerations for only accepting the report from local laboratories.
Answer
TISI has not authorized any third-party testing and certification institution because they do not meet the criteria for recognition of testing and certification institution.
Question 5
China noticed that foreigners must obtain approval to engage in sugar production, rice milling and flour production from rice and other crops. Please specify the conditions for approval.
Answer
For the rice milling production, after a foreigner is granted an approval to operate business in Thailand under the Foreign Business Act B.E. 2542 (1999), s/he will need to apply for a rice trading license under the Rice Trade Act B.E. 2489 (1946) by submitting the documents such as a certificate of juristic person showing a purpose of rice trading (certified before the time of application no more than one month), list of shareholders, factory business license, map of the office, etc. If it is a limited company or a public company limited, majority of the board members must hold a Thai nationality, and there must be at least one person of Thai nationality with an authority to endorse any application forms and certify copies of documents. If the operators submit all required documents, they will certainly be granted the trading license.
Normally, applications for permission will be approved within a day if all the supporting documents are complete. The authorization will be valid for one year from the date of approval and must be renewed every year. For more information, please visit https://www.dit.go.th/Content.aspx?m=9&c=1078.
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COLOMBIA
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
1 ENTORNO ECONÓMICO
1.2 Evolución Económica Reciente
1.2.1 La pandemia de COVID-19
En el cuadro 1.2 la Secretaria indica las principales medidas de alivio adoptadas por Tailandia para hacer frente a los efectos de la COVID-19.
Question 1
Respecto de los temas de facilitación del comercio y ante los efectos de la pandemia por COVID-19, podría Tailandia compartir información sobre qué medidas específicas ha establecido para facilitar y garantizar el flujo de las operaciones de importación y exportación de mercancías. ¿Estas medidas se implementaron de manera temporal o se ha previsto mantenerlas de forma permanente?
[With regards to trade facilitation in the face of the pandemic, could Thailand share information about what specific measures have been implemented to facilitate import/export operations? Are these measures temporary or permanent?]
Answer
To facilitate trade during COVID-19 crisis, Thailand has amended and issued some subsidiary laws and regulations as follows.
1) Ministerial Regulation Re: Exempt an importer or an exporter from complying with Customs Act B.E. 2560 (2017) in whole or in part B.E. 2563 (2020): This ministerial regulation was issued in order to temporarily extend the 30-day terms of allowance for goods in transit or transshipment. In case a person bringing in goods for transit or transshipment is unable to bring such goods out of the Kingdom within 30 days because of the COVID-19 pandemic, he/she is entitled to file a petition and supporting documents indicating the obstacle caused by COVID-19 to the Thai Customs Department. The allowance of extension will be under its consideration according to the circumstance of case-by-case basis.
2) Notification of the Ministry of Finance Re: Reduction of customs tariff rate and exemption of customs duty according to Section 12 of Customs Tariff Decree B.E. 2530 (1987) (No. 3): This notification was issued to exempt customs duty of tariff code 6307.90.40 and 6307.90.90 which are surgical masks and anti-pollution masks respectively. The exemption was applied due to a high demand of using in medical sector and in public while a capacity of manufacturing in the country was inadequate. This is a temporary measure ending on 20 September 2020.
3) Notification of the Ministry of Finance Re: Exemption of customs duty for imported goods to use in treatment, diagnosis and prevention of the COVID-19: This notification was issued to exempt customs duty of goods to use in treatment, diagnosis and prevention of the COVID-19 based on the list announced by the Ministry of Health. It is a temporary measure ended on 30 September 2020.
4) Notification of the Customs Department No. 76/2563 Re: Principle and customs formality of customs duty exemption for imported goods to use in treatment, diagnosis and prevention of the COVID-19: This notification was issued to inform how to declare the imported goods to use in treatment, diagnosis and prevention of the COVID-19 in accordance with the notification of the Ministry of Finance in 3.
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5) Notification of the Customs Department No. 81/2563 and 166/2563 Re: Declaration of certificate of origin for importers facing with an obstacle because of the COVID-19 pandemic: This notification was issued to resolve the delay transfer of an original certificate of origin (CO). Regularly, importers, who declare a reduced tariff rate or an exemption of customs duty according to the rule of origin of each FTA, must file an original form of CO to the official at the customs house while performing customs formalities. However, to declare the original form in a specific time is impossible during the COVID-19 pandemic since the global transportation is delayed due to state quarantine and work from home policy. Therefore, the CO filing time is extended to within 30 days from the date of release of goods and if needed, another 30 days from the date of first 30-day extension ended. This measure applies to all FTA existing and will end on 31 December 2020.
2. REGÍMENES DE COMERCIO E INVERSIÓN
2.1 Marco General
En el párrafo 2.9 se señala que "… a fin de aprovechar la ubicación estratégica de Tailandia en el corazón de Asia Sudoriental, el Gobierno ha creado el Proyecto del Corredor Económico Oriental (EEC), que consiste en una zona económica especial de 13.000 km2, que se extiende por tres provincias orientales. Gracias a la mejora de las infraestructuras y a las instalaciones logísticas actualmente en construcción, el propósito del EEC es potenciar la conectividad regional y servir de centro de operaciones para las industrias designadas (sección 3.3.1). En el marco de las iniciativas destinadas a promover la digitalización de las pymes, se ha creado la Academia para la Nueva Economía, un centro de conocimientos orientado a la tecnología digital que ofrece programas de formación y desarrollo para las pymes; asimismo, un nuevo sitio web (Thaitrade.com) proporciona un mercado electrónico para poner en contacto a empresas tailandesas, sobre todo pymes, con clientes de otros países".
Question 2
Podría el Gobierno de Tailandia ampliar la información sobre la "Academia para la Nueva Economía":
¿Es una entidad que funciona con recursos públicos o privados? ¿Los programas de formación son a nivel tecnológico o profesional? ¿Quién asume los costos de la matrícula en esta academia, los empresarios de las PYMES, los empleados de las PYMES o el gobierno de Tailandia? ¿Un país podría solicitar cooperación a la Academia para la Nueva Economía con el fin de que estudiantes de ese país asistan a programas de formación en esa entidad? En caso afirmativo, ¿Cuál sería el trámite?
[Could the Thai government expand on the "New Economy Academy"?]
[Is this a public or a private entity? Are the training programs on a technical or professional level? Who covers the cost for this training? Is it the SMEs, the employees or the Thai government? Could a country request cooperation with the Academy for a New Economy and send students to attend? If so, what would be the procedure?]
Answer
New Economy Academy (NEA) is a public entity under the Department of International Trade Promotion, Ministry of Commerce of Thailand. It was set up in January 2017 in response to the Thai government's policy vision to adopt a new economic model, Thailand 4.0, which has for objective to create a value-based economy driven by innovation, technology and creativity. One of the agendas for Thailand 4.0 is to incubate Thai entrepreneurs to create innovation driven enterprises. To this end, the NEA aims to provide training courses to develop export capacities of Thai SMEs in the New Economy era.
Question 3
En el párrafo 2.13 la Secretaria informa que "El Comité Consultivo Mixto Público-Privado es la principal vía para la celebración de consultas sobre cuestiones de política comercial entre el Gobierno y el sector privado. Las audiencias públicas periódicas son otro de los canales que permiten al sector
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Podría el Gobierno de Tailandia brindar más información sobre el Comité Consultivo Mixto Público- Privado: ¿Cuándo fue establecido y Cuántos miembros lo conforman? ¿Qué entidades públicas están allí representadas y quien preside este Comité? ¿Cómo se eligen los miembros del sector privado que participan en este Comité y cada cuánto los cambian? ¿Cada cuánto se reúnen el Comité? ¿Cuál es el balance de su gestión?
[Could the Thai government give more information on Joint Public and Private Sector Consultative Committee? When was it established and how many members does it have? What public entities are present and who presides over the committee? How are private-sector members chosen and how many are there? How long do they serve in this role? How often does the committee meet? What are the results of using these committees?]
Answer
Royal Thai government has several national committees responsible for the economy and society, each with both public and private sectors. One of the committees that the Thai government has given top priority is the Joint Public and Private Sector Consultative Committee: JPPSCC. This committee is chaired by the Prime Minister and assigned the Office of the National Economic and Social Development Council (NESDC) to act as secretary. Members from the government sector consist of the Minister of the Economy and the heads of relevant government agencies Private sector committees consist of representatives from three private institutions, namely the Council of the Chambers of Commerce of Thailand Federation of Thai Industries and the Thai Bankers' Association.
The establishment of the JPPSCC allows the government to serve as a primary mechanism for public- private consultations in formulating solutions for economic problems, to implement policies for cooperation between the public and private sectors to perform at the central and regional levels, and to strengthen the private institution as well as disseminate knowledge and understanding on the benefits that the public will receive from continuous cooperation.
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS
3.1 Medidas que afectan directamente a las importaciones
3.1.3 Otras cargas que afectan a las importaciones
En el párrafo 3.36 se señala que "Se aplican recargos a la importación de harina de pescado con un contenido de proteínas superior al 60% (SA 2301.20.20); tortas de soja (soya) (SA 2304.00.90); y maíz forrajero (SA 1005.90.90.002). Antes de importar esos productos, los importadores deben pagar el recargo de importación al Departamento de Comercio Exterior".
Question 4
Podría Tailandia brindar información sobre el motivo o fundamentación de los recargos a la importación de harina de pescado con un contenido de proteínas superior al 60% (SA 2301.20.20); tortas de soja (soya) (SA 2304.00.90); y maíz forrajero (SA 1005.90.90.002).
[Could Thailand provide the reasons why the following products have to pay import duties: 1. fish meal with a protein content of more than 60% (2301.20.20), 2. soya bean cake (2304.00.90), 3. maize for feedstuff (1005.90.90.002)?]
Answer
Import surcharges are applied to Soya bean cake, Maize for feedstuff, and fish meal with a protein content of more than 60% in order to stabilize domestic price of raw material for animal feed appropriately.
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3.1.4 Prohibiciones, restricciones y licencias de importación
En el párrafo 3.38 indica la Secretaria que "3.38. De conformidad con el artículo 5 de la Ley de Exportación e Importación, E.B. 2522 (1979), el Ministro de Comercio, con la aprobación del Consejo de Ministros, puede publicar notificaciones en la Gaceta Oficial para restringir las importaciones (y las exportaciones) por motivos tales como la estabilidad económica, la salud pública, la seguridad nacional, la paz y el orden, la moral o cualquier otro motivo de interés nacional".
Question 5
Podría Tailandia compartir información si en los últimos 3 años, ha hecho uso del artículo 5 de la Ley de Exportación e Importación, E.B. 2522 (1979), el cual autoriza al Ministro de Comercio, con la aprobación del Consejo de Ministros, a restringir las importaciones (y las exportaciones) por motivos tales como la estabilidad económica, la salud pública, la seguridad nacional, la paz y el orden, la moral o cualquier otro motivo de interés nacional.
[Could Thailand share information about whether or not in the last three years they have made use of article 5 of the Export and Import Act B.E. 2522 (1979), which authorises the trade minister, with the approval of the council of ministers to restrict imports or exports for reasons of economic stability, health, national security, peace, order, morals or any other reason affecting the national interest?]
Answer
During 2018 – 2020, Thailand notified two law/regulations issued under article 5 of the Export and Import Act B.E. 2522 (1979) as follows:
1) Notification of the Ministry of Commerce Regarding the Determination of Used Motor Vehicles as Import Prohibited Goods or Subject to Import Licensing into the Kingdom of Thailand B.E. 2562 (2019)
2) Notification of the Ministry of Commerce Regarding the Determination of Used Motor Vehicles as Import Prohibited Goods or Subject to Import Licensing into the Kingdom of Thailand (No.2) B.E. 2562 (2019).
3.1.5 Medidas antidumping, compensatorias y de salvaguardia
3.1.5.1 Medidas antidumping y compensatorias
En el párrafo 3.47 la Secretaria informa que "La legislación sobre medidas antidumping y compensatorias -la Ley de Medidas Antidumping y Compensatorias, E.B. 2542 (1999)- se modificó el 22 de mayo de 2019, y la modificación entró en vigor el 18 de noviembre de ese año. Las autoridades han indicado que presentarán la correspondiente notificación a la OMC cuando esté ultimada la traducción al inglés. Asimismo, las autoridades han señalado que la modificación aclara ciertos aspectos, incluidas las disposiciones contra la elusión".
Question 6
Podría Tailandia compartir información sobre ¿Cuáles fueron los cambios sustanciales que se incorporaron a legislación tailandesa vigente sobre medidas antidumping y compensatorias al modificar la ley E.B. 2542 (1999), con el fin de hacer más eficientes y efectivas las investigaciones por comercio internacional desleal?
[Could Thailand share information about what substantial changes were made to legislation with regards to the Anti-Dumping and Countervailing Act, B.E. 2542 (1999) with the purpose of making unfair competition investigations more effective?]
Answer
The amendment has added a new chapter relating to Anti-Circumvention in order to enhance the effectiveness of AD/CVD measures by extending Anti-dumping duties not exceeding the residual
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3.3 Medidas que Afectan a la Producción y al Comercio
3.3.6 Política de competencia y regulación de los precios
3.3.6.4 Regulación y control de los precios
La Secretaria informó en el párrafo 3.216 que "La CCP mantiene dos tipos de listas, una en la que figuran los productos y servicios sujetos a vigilancia de precios (cuadro 3.26), y otra que contiene los productos y servicios sujetos a control de precios (cuadro 3.27). Ambas listas se actualizan periódicamente".
Question 7
Colombia desearía profundizar en el sistema de vigilancia de precios y en las subvenciones sobre en el sector agrícola de Tailandia. ¿Estas subvenciones son compatibles con el Artículo 5 del Acuerdo de Subvenciones de la OMC?
[Colombia would like to know more about the price monitoring and subsidies related to agricultural production in Thailand. Are these subsidies compatible with article 5 of the WTO agreement on subsidies?]
Answer
The list of goods and services that the Department of Internal Trade (DIT) monitor prices, are divided into three categories: i) Sensitive List: to be monitored daily ii) Priority Watch List: to be monitored twice a week, and iii) Watch List: to be monitored every 15 days or every month.
Factors to be considered in listing such goods and services include, among others:
- The goods or services are necessary for consumption
- Prices of raw materials tend to rise
- Market demand is high
- The goods or services are sensitive to price fluctuation.
Therefore, these goods and services are under close price surveillance by the DIT.
3.3.1 Incentivos
3.3.1.2.3.2 Otros incentivos ofrecidos por la BOI
Tailandia Plus
En el párrafo 3.138 se indica que "En septiembre de 2019, Tailandia presentó Tailandia Plus, un conjunto de medidas de estímulo dirigidas a atraer empresas extranjeras para que se establezcan en el país y a acelerar las inversiones a gran escala, así como a reforzar la capacitación de la mano de obra. Las nuevas medidas comprenden un conjunto mejorado de incentivos para los proyectos que impliquen una inversión igual o superior a THB 1.000 millones, nuevos incentivos para las empresas que lleven a cabo actividades de desarrollo de los recursos humanos e incentivos revisados para animar a las empresas a establecer centros de formación en ciencias, tecnología, ingeniería y matemáticas o de formación profesional".
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Question 8
¿Podría el gobierno de Tailandia explicar en mayor detalle las medidas de estímulo establecidas en septiembre de 2019 en el marco del programa Tailandia plus para atraer empresas extranjeras con inversiones a gran escala? ¿En qué consisten los incentivos "revisados" para promover actividades de desarrollo de los recursos humanos y el establecimiento de centros de formación en ciencias, tecnología, ingeniería y matemáticas?
[Could the Thai government explain the stimulus measures adopted in September 2019 in the framework of the Thailand Plus to attract foreign companies with large scale investments? What are the revised incentives to promote human resources development, and the establishment of teaching centers in science, technology, engineering and math?]
Answer
"Thailand Plus package" covers comprehensive measures that will enhance Thailand's attractiveness as an investment location, including investment acceleration incentives, fiscal measures supporting STEM manpower development, deregulation, and improved pre- and post-investment services. Additional incentives include reduction of corporate income tax and additional tax exemption.
4 POLÍTICAS COMERCIALES, POR SECTORES
4.2 Pesca
4.2.3 Política pesquera
4.2.3.1 Marco jurídico, institucional y normativo
En los párrafos 4.33 y 4.44 se informa que "En 2019 la industria pesquera representó el 0,68% del PIB (0,8% en 2013) y el 2,13% de las exportaciones totales (2,9% en 2014). Según la información en línea del Departamento de Pesca, en 2018 el sector de la pesca estaba compuesto por:
• un subsector de pesca marina, que contaba con 11.069 embarcaciones de pesca comercial con 155.757 trabajadores (64.935 tailandeses y 90.822 extranjeros), y 21.460 embarcaciones artesanales con 32.190 trabajadores; y
• un subsector de acuicultura, con 571.355 trabajadores.2
La captura marina total se redujo de 2 millones de toneladas en 2007 a 1,4 millones de toneladas en 2019, probablemente debido al problema de la sobrepesca y a las medidas adoptadas por el Gobierno para controlar la pesca ilegal, no declarada y no reglamentada (INDNR). Según los datos de las autoridades, el porcentaje de captura marina dentro de la zona económica exclusiva (ZEE) de Tailandia aumentó considerablemente (del 58% en 2007 a casi el 100% en 2019), mientras que la pesca fuera de Tailandia disminuyó".
Question 9
¿La medida que prohíbe a los extranjeros la pesca en lo que respecta a la captura de animales acuáticos en aguas tailandesas y en zonas económicas específicas, pero que puedan trabajar en la tripulación de una embarcación pesquera a condición de que estén registrados en Tailandia como trabajadores extranjeros, cumple con los parámetros de Trato Nacional del GATT y del GATS?
[Does the measure which forbids foreigners from fishing and capturing marine life in Thai territorial waters and in the Thai specific economic zones, but allows them to work as crew on a fishing vessel as long as they are registered in Thailand as foreign workers, respect the national treatment parameters of GATT and GATS?]
2 DOF, Thailand Fisheries Overview. Consultado en: https://www4.fisheries.go.th/index.php/dof_en/view_message/215.
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Answer
According to Notification of Ministry of Labour regarding the Professions and Occupations prohibited to foreigners B.E. 2563 (2020), working in fishery is under the third category where foreign workers are allowed if employer presents.
Question 10
En el párrafo 4.42 sobre la política pesquera, se indica que "En el caso de las embarcaciones que enarbolan el pabellón tailandés en aguas internacionales, se prevé la presencia de observadores del Departamento de Pesca a bordo para vigilar la pesca y el transbordo de los cargueros.".
Podría Tailandia dar más detalles sobre cómo funciona el sistema de observadores a bordo, el tipo de información que recogen y control que ejercen, así como explicar cuál es procedimiento que se sigue en caso de identificación de barcos u operadores que infrinjan actividades de pesca ilegal, no declarada y no reglamentada.
[Could Thailand provide more details about how the system of observers onboard works? What information do they collect? What control do they perform? What is the procedure if illegal, unreported, and unregulated fishing vessels are detected?]
Answer
Observers onboard duties are as follows:
1) Observe and collect biological data (aquatic animal composition, transshipment sample collection, related activities such as selecting, processing, marine catch transshipment, observing parts of vessel, storage rooms, vessel bridge, and also fishing gear technology).
2) Record biological information or information about the practice of conservation measures and management such as biological data of aquatic animals, number of incidental catches and thrown back to the sea, types of fishing gears, size of nets/trawls, fishing log book, fish transshipped, and also sign in transshipment declaration.
Currently, the Fishing and Fleets Management Division under the Department of Fisheries, Thailand requires observers to collect data and pictures of vessels suspected operating unregistered vessels or adherent with international organizations, and send to fisheries authorities via electronic communication tools for further consideration.
Question 11
En el informe de la Secretaría, párrafo 4.43 y el cuadro 4.6 se indican las estrategias de ordenación de la pesca.
Podría Tailandia ofrecer mayores detalles sobre el alcance y funcionamiento de las estrategias para "Aumentar la producción pesquera y mejorar la capacidad de los piscicultores" y para "Mejorar la competitividad".
[Could Thailand provide additional information on the reach and way of working of the strategies to "Improve fish production and the capability of fish farmers" and to "Improve competitiveness"?]
Answer
Thailand works on various strategies as follows:
1) To develop aquatic animal production
- Organize organic agriculture projects
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- Promote aquaculture of new economic aquatic animals
2) To improve capability of fish farmers
- Use Mega Farm project to increase income and reduce production costs of fish farmers.
3) To enhance the competitiveness
- Promote online selling and measures to prevent COVID-19 in export products.
Question 12
El párrafo 4.46 del informe de la Secretaría, se indica que existen 35 líneas arancelarias que están sujetas a tipos alternativos. Una de ellas es la correspondiente a aletas de tiburón.
Podría Tailandia indicar cuál es el arancel aplicable a este producto y qué tipo de controles se aplican a la importación de este. ¿Cómo responden estos controles a las políticas de lucha contra la pesca ilegal?
[Could Thailand explain what tariffs and what controls are applied to this product? How do these controls relate to the fight against illegal fishing?]
Answer
The Department of Fisheries use legal measures on sanitation as follows:
1) The Animal Epidemics Act. B.E.2558 (2015)
2) The Food Act, B.E. 2522 (1979)
3) The combat of IUU fishing measure is the Royal Ordinance on Fisheries, B.E. 2558 (2015) and additional amendments.
Implementing these law and regulations, importation of aquatic animals to Thailand requires importers to show Catch Certificate or any other documents to confirm that the imported fishes have been caught legally and not involved the IUU fishing.
4.4 Manufacturas
En el párrafo 4.85 se señala que "En 2019 la Oficina de Economía Industrial, dependiente del Ministerio de Industria, puso en marcha un Plan de Acción para el Desarrollo Industrial (2019-2037), con el propósito de "avanzar hacia una industria impulsada por el conocimiento en conexión con la economía mundial". Los principales objetivos son mejorar la competitividad industrial de Tailandia en el mundo; generar más ingresos y crear más empleo, y asegurar un crecimiento económico continuado y estable; y hacer del desarrollo industrial un motor esencial para transformar Tailandia en un país desarrollado y de ingresos altos. Según las autoridades, en el Plan se establecen unos objetivos específicos en lo que se refiere a las tasas de crecimiento anual mínimas en el período 2019-2037 para los siguientes indicadores: una contribución del sector industrial al PIB igual o superior al 4,5%; una tasa de inversión en el sector industrial igual o superior al 10%; un valor de las exportaciones igual o superior al 8%; una productividad total de los factores igual o superior al 2%".
Para alcanzar estos objetivos el párrafo 4.86 señala que "en el Plan se definen cinco subsectores y tres directrices orientadas a su desarrollo".
El párrafo 4.87 indica que "esos cinco subsectores son los siguientes: i) el subsector de la agricultura y la biotecnología, como la industria de los alimentos y las bebidas, la agroindustria y la bio-industria; ii) el subsector de la salud, el bienestar y la biomedicina, como la industria farmacéutica y de los productos fito-terapéuticos, los dispositivos médicos y los servicios médicos; iii) el subsector de los dispositivos inteligentes, la robótica y la mecatrónica, como las industrias robótica, aeroespacial,
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Question 13
Colombia desearía conocer sobre el Plan de Acción para el Desarrollo Industrial de Tailandia, cuyo objetivo es incrementar el valor medio de las exportaciones en, al menos, un 8% anual. En particular, nos gustaría saber con más detalle ¿Cómo Tailandia ha estructurado los incentivos para aumentar sus exportaciones? Y ¿Cómo las mismas son compatibles con el Artículo 5 del Acuerdo de Subvenciones de la OMC?
[Colombia would like to understand the Action Plan on Industrial Development, which aims to increase export value by 8% annually. In particular, we would like to know how Thailand has structured incentives to increase exports and how these are compatible with article 5 of the WTO treaty on subsidies.]
Question 14
¿Qué tipo de incentivos consagra el Plan para las Industrias Primarias de Petroquímica y Química, Energía, Metalurgia, Embalaje, Maquinaria, Molturación y Minería? ¿Son estos incentivos subvenciones recurribles según el Artículo 5 del Acuerdo de Subvenciones de la OMC?
[What kinds of incentives are in the Plan for Primary Petrochemical Industries, Chemistry, Energy, Welding, Packaging, Machinery and Mining? Are these incentives actionable subsidies as defined in article 5 of the WTO Subsidy Agreement?]
Answer for Q13-Q14
The industrial sectors under the action plan are the target industries that the Ministry of Industry considered as the important engines of economic growth. They consist of 5 groups namely; (1) Agriculture, Food processing and Biotechnology, (2) Public Health, Health, and Medical Technology, (3) Electronically Controlled Mechanical, Smart Devices, and Robots e.g. automotive and parts, electrical appliances and telecommunication equipment, robots, and aircraft, (4) Digital Groups e.g. internet technology, connected devices, artificial intelligence, software development, e-commerce, and data center cloud computing, and (5) Creative Industry Capital, Culture and High Value Services e.g. tourism, fashion industry, lifestyle industry, creative media and animation industry. Instead of utilizing import substitution or export support measures. The Ministry of Industry's measures focus on building a necessary infrastructure and creating good business environment to promote investment in the abovementioned industries in order to reach the stated goal.
Question 15
En el párrafo 4.93 se destaca que "El Gobierno ha puesto en marcha el modelo económico "Tailandia 4.0", destinado a impulsar el crecimiento económico a través de la innovación. Con el fin de favorecer una reestructuración industrial conforme a este modelo, la BOI ha promovido las inversiones en sectores y tecnologías designados, entre ellos los relacionados con el modelo BCG. En este contexto, se conceden diversos incentivos al sector manufacturero en forma de, entre otras, la exención temporal del impuesto sobre la renta de las sociedades y la exención de los derechos de importación en el marco de la Política de Promoción de las Inversiones de la BOI. También se conceden varios incentivos fiscales y no fiscales a las empresas establecidas en el corredor económico oriental, las zonas francas aduaneras y las zonas francas de la Administración de Polígonos Industriales de Tailandia. Asimismo, se ofrecen diversos incentivos para atraer IED en el marco del conjunto de medidas Tailandia Plus (sección 3.3.1). En septiembre de 2019, la BOI puso en marcha una amplia gama de medidas de promoción de las inversiones, como nuevos incentivos fiscales para los centros de enseñanza y de formación profesional especializados en ciencia, tecnología, ingeniería y matemáticas, con el fin de potenciar el desarrollo de los recursos humanos. Las autoridades han señalado que se otorgan los mismos incentivos a los inversores nacionales y a los extranjeros para las actividades admisibles".
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Podría Tailandia profundizar los detalles sobre la política de desarrollo "Tailandia 4.0", y confirmar si en la implementación de esta política se toman medidas contra el uso de programas informáticos sin licencia y el robo de señales de cable y de satélite, en los términos del Artículo 10 del ADPIC?
[Could Thailand provide more detail about the "Thailand 4.0" development policy and confirm whether measures in this program against the use of unlicensed software and the theft of cable or satellite signal are addressed as in the terms of article 10 of TRIPS?]
Answer
The Thailand 4.0 national strategy primarily is the development plan to put creativity, innovation, and value-based economy as the engine of growth. Therefore, the policy would not support any violation or unlicensed intellectual properties required by international standards and practices. In addition, the strategy 6 of Thailand Digital Economy and Society Development Plan aims to build trust and confidence in the use of digital technology in both economic and social sector. The strategy includes a plan to amend and update related laws which include intellectual property law to promote innovation and comply with international standards to support the utilization of digital technology.
More details about the "Thailand 4.0" policy can be found in paragraph 3.4 of the Government Report. Thailand has consistently tackled with the use of unlicensed software and the theft of cable or satellite signals. Effective IPR protections including copyright protection go hand in hand with promoting the digital economy under the Thailand 4.0 policy and consistent with the Article 10 of TRIPS Agreement.
4.5 Servicios
4.5.4 Turismo
En el párrafo 4.204 se informa que "… las autoridades han tomado medidas para mejorar la preparación del sector, como la puesta en marcha de un sistema de certificación de la gestión en materia de seguridad y salud. El objetivo de la certificación es mejorar los protocolos seguidos para la prestación de servicios, poniéndolos en conformidad con las directrices sanitarias internacionales más recientes relativas a la COVID-19. Además, en junio de 2020, el Consejo de Ministros aprobó la propuesta de poner en marcha tres paquetes de medidas para impulsar el turismo nacional. En el marco de estas medidas se dará un apoyo económico a los turistas nacionales que hagan gasto en el mercado interno".
Question 16
¿Podría el Gobierno de Tailandia ampliar la información sobre los tres paquetes de medidas para impulsar el turismo local? Por ejemplo: acciones, ámbito de aplicación de cada una de las medidas, recursos destinados para cada paquete, duración de las medidas.
De otro lado, ¿Cuál es el mecanismo que van a utilizar para entregar el apoyo económico a sus ciudadanos que hagan gastos en el turismo interno? ¿Por cuánto tiempo pretenden mantener esa medida? ¿Cuántos serán los recursos económicos previstos para ese beneficio económico?
[Could the Thai government provide more information on the three tourism packages to boost local tourism? For example: actions, area of application of each measure, resources destined for each measure, and duration of each measure. ]
Answer
Thailand's Cabinet approved three packages intended to boost Thailand's declining tourism industry, hit hard by the COVID-19 pandemic.
The funding for the three packages will come from the THB 1.9 trillion budget intended to cushion the impacts on the economy and the Thai people from COVID-19 pandemic.
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The first package is intended to provide incentives to about 1.2 million front-line medical personnel and public health volunteers. Each will be given 2,000 baht travelling expenses for two days and one night. The package is estimated to cost the taxpayer 2.4 billion baht.
The second package is intended to encourage two million people to travel and spend. Each will be given 1,000 baht to cover 40% of their travel by air, public bus or by rented car. The cost of this package is estimated at 2 billion baht.
The third, which will cost an estimated 18 billion baht, will cover 40% of the hotel expenses of customers, for room rates not exceeding 3,000 baht per night, and food expenses. Hotels wanting to join this program must register with the state-owned Krung Thai Bank.
[What mechanisms will be used to provide resources to those citizens who engage in national tourism? How long will those resources be available?]
Answer
In order to promote domestic travel in the final quarter, the Ministers of Finance, and Tourism and Sports are planning to prolong and change the parameters of the We Travel Together tourism initiative and possibly extending this initiative. The domestic tourism stimulus program, launched on 15 July, is part of the government's attempt to spur domestic travel since due to the COVID-19 pandemic, international tourists are still prohibited from entering the world.
At 40% of usual room prices, the government subsidizes 5 million nights of hotel lodging, with the discount being restricted to 3,000 baht a night for up to five nights. The other 60% is accountable to visitors. Subsidies are set at 600 baht per room per night for other facilities, including food. The subsidized tourism facilities would operate outside the home provinces of the tourists and are restricted to 40% of real costs, with the remainder being charged by tourists. According to the Fiscal Policy Office (FPO), about 1.2 million rooms have been utilized by individuals in the program.
QUESTIONS REGARDING THE REPORT BY THE GOVERNEMENT – WT/TPR/G/400
En el párrafo 3.39 – 3, se indica que "En el caso de las embarcaciones que enarbolan el pabellón tailandés y faenan en aguas internacionales, el Departamento de Pesca ha establecido medidas para controlar, vigilar y prevenir la pesca ilegal, incluido el estacionamiento de observadores a bordo para vigilar la pesca y el transbordo de cargueros en aguas internacionales. A este respecto, se ha creado la Red de Información sobre la Pesca, que es una base de datos electrónica en tiempo real de embarcaciones pesqueras que vincula diversos datos para que la unidad de operaciones pueda inspeccionar y vigilar con eficacia y precisión."
Question 17
Podría Tailandia dar más información sobre el número de embarcaciones que realizan faena de pesca en aguas internacionales.
Qué porcentaje de la captura marina total representa la pesca realizada en aguas internacionales?
Las embarcaciones que realizan faena en aguas internacionales se benefician de los programas de ayuda interna ofrecidos por la Junta de Inversiones u otras entidades del gobierno, según lo referido en el 4.51 del informe de la Secretaría?
[How many vessels are carrying out fishing in international waters?]
[What share of the national catch is from international waters?]
[Are vessels operating in international waters receiving help from the Board of Investment or other entities as mentioned in 4.51 of the Secretariat Report?]
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Answers
Currently, four commercial fishing vessels are permitted to do fishing outside Thai waters and 11,069 commercial fishing are permitted to do fishing in Thai waters. In 2019, the catch volume of fisheries in Thai waters was 1,410,414 tons and the catch volume outside of Thai waters was 251 tons. The overseas fishing fleets do not get supports from the Board of Investor (BOI).
Question 18
¿El sector de la pesca se beneficia de subsidios a los combustibles? ¿En particular, este sector se beneficia de la Ley del Fondo del Petróleo?
[Does the fishing sector benefit from fuel subsidies? Specifically, is it supported with help from the Oil Fuel Fund?]
Answer
The fishing sector receives neither fuel subsidies nor any support from the Oil Fuel Fund.
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COLOMBIA – 1ST ADDITIONAL QUESTIONS
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT – WT/TPR/S/400
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS
3.3 Medidas que Afectan a la Producción y al Comercio
3.3.2 Normas y otras prescripciones técnicas
1) El parágrafo 3.140 señala lo siguiente:
"Desde el anterior examen no ha habido cambios importantes en el marco institucional por el que se rigen las normas y la evaluación de la conformidad. El Instituto Tailandés de Normalización Industrial (TISI), que depende del Ministerio de Industria, fue establecido en 1969 en virtud de la Ley de Normas sobre los Productos Industriales, E.B. 2511 (1968). Se encarga de la elaboración de normas nacionales (tanto voluntarias como obligatorias), la certificación y el registro de productos, y la participación en las actividades de normalización regionales e internacionales. Además del TISI, los siguientes organismos se encargan de diversos aspectos de los reglamentos técnicos y las normas:
• la Oficina Nacional de Normas sobre Productos Básicos Agrícolas y Productos Alimenticios (ACFS), dependiente del Ministerio de Agricultura y Cooperativas, se encarga de la aplicación de las normas a lo largo de la cadena de suministro de alimentos, la acreditación de los organismos de certificación e inspección de productos agropecuarios y alimentos, la cooperación internacional y el control de las normas alimentarias;
• el Ministerio de Comercio se ocupa de la política y legislación sobre metrología;
• el Instituto Nacional de Metrología (Tailandia), dependiente del Ministerio de Ciencia y Tecnología, se encarga de la aplicación de la reglamentación relativa a la metrología; y
• la Oficina del Consejo Nacional de Normalización (NSC) y su red de organismos, incluidos el Departamento de Servicios Médicos, el Departamento de Servicios Científicos y la ACFS, se ocupan de la acreditación de las organizaciones de evaluación de la conformidad."
Question 19
¿Tailandia podría proporcionar más información sobre su experiencia en la revisión de reglamentos técnicos?
[Could Thailand provide more information on its experience in reviewing technical regulations?]
Question 20
¿Cómo se incorporan las buenas prácticas de regulación en el proceso adoptado por TISI?
[How are good regulatory practices incorporated into the process adopted by TISI?]
Answer for Q19-Q20
In the process of developing standard, the international standards such as International Organization for Standardization (ISO), International Electrotechnical Commission (IEC) are recognized to ensure conformity and harmonization between national and international standards. Before regulating a compulsory standard, the public consultation is held to welcome comments from stakeholders. Furthermore, the standard is reviewed every five years.
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2) Los parágrafos 3.149 a 3.151 señalan lo siguiente:
"3.149. En el marco de la OMC, el TISI es el servicio de información para cuestiones de la OMC relacionadas con los reglamentos técnicos sobre productos industriales, y la ACFS cumple la misma función con respecto a los productos alimenticios y agropecuarios. Tailandia aceptó el Código de Buena Conducta para la Elaboración, Adopción y Aplicación de Normas que figura en el Anexo 3 del Acuerdo sobre Obstáculos Técnicos al Comercio (Acuerdo OTC)".
3.150. Entre el 1 de enero de 2015 y el 27 de julio de 2020, Tailandia presentó 234 notificaciones al Comité de Obstáculos Técnicos al Comercio de la OMC, incluidas 135 notificaciones ordinarias, 7 corrigendum, 71 addendum y 21 revisiones. La mayor parte de las notificaciones se hicieron en virtud del artículo 2.9 del Acuerdo OTC y fueron presentadas en su mayoría por el TISI, con un plazo de 60 días para la formulación de observaciones. Las notificaciones relativas a los productos agropecuarios y alimenticios fueron presentadas por la ACFS. La mayoría de las notificaciones se referían a la salud o seguridad humanas, algunas a la protección del consumidor mediante el etiquetado, la protección del medio ambiente, o la reducción de los obstáculos al comercio y la facilitación del comercio".
3.51. Durante el período examinado, en el Comité OTC de la OMC se plantearon algunas preocupaciones comerciales específicas contra Tailandia en relación con los siguientes puntos:
• nuevas prescripciones de certificación para la importación de bebidas espirituosas;
• normas, procedimientos y condiciones aplicables al etiquetado de bebidas alcohólicas; y
• controles de la promoción de alimentos para lactantes y niños pequeños y productos conexos."
Question 21
¿Tailandia cuenta con mecanismos de coordinación con partes interesadas para tratar asuntos relacionados con Obstáculos Técnicos al Comercio OTC? ¿Cómo funciona y qué entidad lo realiza?
[Does Thailand have coordination mechanisms with stakeholders to deal with issues related to TBT? How does it work and what entity does it?]
Question 22
¿Tailandia apoya a las empresas a identificar asuntos relacionados con Obstáculos Técnicos al Comercio OTC que puedan afectar el comercio? ¿Cómo funciona y qué entidad lo realiza?
[Does Thailand support companies to identify issues related to TBT that may affect trade? How does it work and what entity does it?]
Question 23
¿Tailandia monitorea y revisa reglamentos técnicos previstos o adoptados por otros países miembros de la OMC y ayuda en la formulación de comentarios y observaciones? ¿Cómo funciona y qué entidad lo realiza?
[Does Thailand monitor and review technical regulations envisaged or adopted by other WTO member countries and assist in making comments and observations? How does it work and what entity does it?]
Answer for Q21-Q23 & Q25
TISI has circulated the notifications of other members under the Technical Barriers to Trade agreement to Thai stakeholders, including government agencies and private sectors, for comment. Any comment or question from the stakeholders is forwarded to the enquiry point of other members for their consideration. For specific trade concerns (STCs), all STCs will be submitted to the Thai TBT
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Committee, comprising of representatives from government agencies and private sectors, for approval before raising or response STCs in WTO/TBT Meeting.
Question 24
¿Tailandia hace uso de la herramienta E-PING de la OMC? ¿Cómo ha sido su experiencia y para que fines utiliza la herramienta?
[Does Thailand make use of the WTO ePing tool? How has your experience been and for what purposes do you use the tool?]
Answer
TISI uses the WTO ePing tool to search for the information related to the notifications and interesting technical regulations. However, the information updated on ePing website is one day late comparing with Information Management System. Therefore, using IMS is more preferable.
Question 25
¿Tailandia tiene mecanismos que involucren diferentes partes interesadas, para construir preocupaciones comerciales especificas a medidas de otros países miembros y para la defensa de las preocupaciones presentadas contra Tailandia? ¿Qué mecanismo, cómo funciona y qué entidad está a cargo de esta actividad?
[Does Thailand have mechanisms that involve different stakeholders, to build specific trade concerns to measures of other member countries and to defend the concerns raised against Thailand? What mechanism, how does it work and what entity is in charge of this activity?]
Answer
See the answer above.
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COLOMBIA – 2ND ADDITIONAL QUESTIONS
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Evolución económica reciente
1.9. Las medidas de salud pública adoptadas por Tailandia han sido bastante eficaces para contener rápidamente la propagación de la COVID-19 y se ha registrado un número relativamente pequeño de casos confirmados y muertes en comparación con otros países de la región y del mundo. No obstante, los costos económicos y sociales de la pandemia, resultantes de las medidas de contención aplicadas por muchos países y Tailandia, han sido importantes. En el primer trimestre de 2020, la economía tailandesa se contrajo un 1,8% interanual, y más de 170.000 trabajadores del sector formal solicitaron prestaciones por desempleo. Se prevé un aumento de las pérdidas de empleo en los trimestres segundo y tercero de 2020, dado que hay 8,4 millones de puestos de trabajo en riesgo en las industrias manufactureras y de servicios como resultado del brote de COVID-19, que se suman a otros 6 millones de puestos de trabajo agrícolas afectados por la sequía generalizada.
Question
Dado que la industria de los servicios representa más del 50% del empleo total, además de las medidas fiscales tomadas, ¿cuáles son las medidas específicas que se dispone Tailandia a tomar para incentivar la industria de los servicios y revertir el efecto de la pérdida de empleos en el corto, mediano y largo plazo?
Question
Acuerdos regionales y preferenciales
2.27. En cuanto al comercio de servicios, se han liberalizado 12 sectores de servicios principales, que comprenden 128 subsectores. En 2018 se firmó el Protocolo de Aplicación del 10º Conjunto de Compromisos sobre Servicios Financieros en virtud del Acuerdo Marco de la ASEAN sobre Servicios (AFAS). Además, en abril de 2019 se concluyó el Acuerdo de la ASEAN sobre el Comercio de Servicios (ATISA), que se venía negociando desde 2013 y ahora se encuentra en el proceso de firma y ratificación. El ATISA consolida los logros alcanzados en el marco del AFAS, prevé una futura transición a un enfoque de lista negativa para la consignación de los compromisos de liberalización, y a la larga sustituirá al AFAS. Se está elaborando un plan de trabajo para la presentación de las listas de medidas no conformes. En lo que respecta a la integración financiera, en abril de 2019, se firmó el Protocolo de Aplicación del Octavo Conjunto de Compromisos sobre Servicios Financieros en virtud del AFAS, que entró en vigor en octubre de ese año, y los miembros han iniciado las negociaciones sobre el noveno conjunto de compromisos. De forma análoga, han proseguido los esfuerzos para facilitar la movilidad de los profesionales de los servicios mediante la aplicación del Acuerdo de la ASEAN sobre el Movimiento de Personas Físicas, el Acuerdo de Reconocimiento Mutuo de la ASEAN sobre Servicios y el Marco de Referencia de Cualificaciones de la ASEAN.
¿Cuándo prevé Tailandia que se perfeccione la transición a un enfoque de lista negativa para la consignación de los compromisos de liberalización del Acuerdo de la ASEAN sobre el Comercio de Servicios (ATISA) en el marco del AFAS? ¿Considera viable Tailandia que dicha transición también se realice en el marco de otros acuerdos comerciales? ¿Esa es una directriz de política comercial?
Question
Telecomunicaciones
4.134. Tailandia aspira a transformarse en una economía digital; el Gobierno tiene previsto impulsar al máximo las tecnologías digitales en todas las esferas de la sociedad y la economía. En este contexto, empezó en 2016 a aplicar la política "Tailandia 4.0". Desde febrero de 2020, la inversión extranjera en los servicios digitales y los parques digitales ya no requiere autorización previa del MDES.
En el marco de este desarrollo en torno a la economía digital, ¿han desarrollado alianzas, trabajos o firmado acuerdos con otros países en la materia?
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Question
¿Puede Tailandia informar cuales iniciativas y listar la mejora regulatoria resultante de la aplicación de la política "Tailandia 4.0"? ¿Qué logros específicos ha tenido Tailandia con la aplicación de la política "Tailandia 4.0" y cuáles son los aspectos a intervenir en el corto y mediano plazo?
Question
4.142. (...) Los principales operadores privados en el mercado (por ejemplo, True y DTAC) tienen participación extranjera en el capital.
¿Existen en Tailandia estrategias de Red Carpet o de atracción a la inversión para el sector de las telecomunicaciones? Si sí, ¿cuáles son?
Question
4.152. En 2019, con el fin de impulsar la transición del país hacia una economía digital, Tailandia aprobó varias leyes y reglamentos nuevos y modificó los existentes para crear un entorno favorable. La Ley de Ciberseguridad creó nuevas autoridades encargadas de combatir los delitos cibernéticos y de proteger la infraestructura crítica de información a nivel nacional; la Ley de Protección de los Datos Personales establece normas y mecanismos para proteger los datos personales. Además, la Ley de Transacciones Electrónicas se modificó en dos ocasiones para tener en cuenta los últimos avances tecnológicos.
En el marco de las leyes y reglamentos nuevos, ¿se han contemplado, analizado y/o aprobado normas que incluyan tecnologías de la cuarta revolución industrial o tecnologías emergentes? ¿cuáles son?
Question
Régimen de Inversión
2.43. La Ley de Empresas Extranjeras permite al Ministerio de Comercio revisar y eliminar las categorías de actividades de las listas mencionadas supra mediante reglamentos ministeriales. Durante el período objeto de examen, el Ministerio de Comercio emitió este tipo de reglamentos ministeriales en algunos casos: en 2016, se eliminó mediante un reglamento el requisito relativo a la licencia de actividad económica para extranjeros para las inversiones en banca y en seguros; en 2017, la exención se aplicó a otras actividades que se rigen por las leyes relativas a las instituciones financieras (grupo 1) y a actividades que se rigen por otras leyes específicas relativas, por ejemplo, a la gestión de activos, las oficinas de representación, las oficinas regionales y los servicios por contrata prestados a organismos públicos o empresas de propiedad estatal (grupo 2). Un reglamento ministerial emitido en junio de 2019 eximió del requisito de licencia de actividad económica para extranjeros a las actividades relacionadas con los servicios de préstamo nacionales, el arrendamiento de espacio de oficina y los servicios de consultoría (gestión, comercialización, recursos humanos y TI) entre las sociedades matrices, sus entidades afiliadas y sus filiales.
¿Cuáles son los criterios aplicados por el Ministerio de Comercio para eliminar requisitos de aprobación y/o participación de capital extranjero en los sectores que pertenecen a alguna de las tres categorías en las que se restringe la inversión extranjera? Cuando se elimina algún requisito, ¿ello se hace de forma temporal o permanente?
Question
2.49. Tailandia es miembro del Organismo Multilateral de Garantía de Inversiones (OMGI) del Banco Mundial y es parte en la Convención sobre el Reconocimiento de las Sentencias Arbitrales Extranjeras. También es signataria del Convenio sobre Arreglo de Diferencias entre Estados y Nacionales de otros Estados (Convenio del CIADI), pero aún no lo ha ratificado. Varios acuerdos de libre comercio firmados por Tailandia incorporan disposiciones sobre inversión, o están siendo revisados para permitir la inclusión de disposiciones sobre inversión.
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¿Cuáles son los acuerdos de libre comercio firmados por Tailandia que no contienen capítulos de Inversión pero que están siendo revisados para incluir disposiciones de inversión? ¿Qué motivó a Tailandia a realizar esa revisión y estimar la conveniencia de contar con disposiciones en materia de inversión en dichos acuerdos comerciales?
Question
3.16 El Departamento de Desarrollo Empresarial (DBD) ha emprendido varias iniciativas para facilitar la actividad empresarial de los inversionistas extranjeros, como se indica a continuación: (…). 4. Promulgación de reglamentos ministeriales para eliminar determinados sectores de servicios de las listas de la Ley de Empresas Extranjeras, E. B. 2542 (1999), y eximir así a las empresas de la obligación de obtener una licencia de actividad económica para extranjeros, a fin de facilitar las operaciones comerciales y promover el comercio y la inversión en Tailandia.
¿Qué criterios emplea el Departamento de Desarrollo Empresarial para eliminar a los sectores de servicios de las listas de la Ley de Empresas Extranjeras? ¿Existe alguna restricción similar para los sectores de bienes? ¿También se están adoptando medidas para facilitar la inversión extranjera en bienes?
Question
Simplificación normativa
3.23 El Gobierno ha introducido el concepto de "economía circular", mediante el cual no solo se apoya a las industrias para lograr un crecimiento equilibrado y sostenible en todas las esferas, sino que también se cumple el Objetivo de Desarrollo Sostenible 12 de las Naciones Unidas, "Garantizar modalidades de consumo y producción sostenibles". En este sentido, el Gobierno ha realizado grandes esfuerzos para reestructurar el modelo de producción industrial, que ha pasado de ser lineal a ser un nuevo modelo circular que aplica conceptos de rentabilidad, de gestión de desechos y de reciclado de materias primas. Las directrices de desarrollo de la economía circular pueden dividirse en tres esferas principales, como se indica a continuación.
¿Cómo parte de esta política de "economía circular" existe alguna medida para fomentar las inversiones extranjeras sostenibles o responsables? De existir en qué consistes estas medidas?
Question
Propiedad Intelectual
3.222. Las mejoras introducidas a nivel nacional durante el período objeto de examen incluyen el establecimiento de un subcomité de lucha contra las infracciones de la propiedad intelectual (dirigido por un Vice Primer Ministro), la modificación de la Ley de Marcas de Fábrica o de Comercio para regular el registro de las marcas de sonido y la modificación de la Ley de Derecho de Autor y la Ley de Delitos Informáticos para combatir más eficazmente las infracciones de la propiedad intelectual en línea. Tailandia ha realizado esfuerzos considerables para simplificar los procesos de examen de las marcas de fábrica o de comercio y las patentes, lo que ha llevado a una reducción de los plazos de tramitación de las patentes en el período examinado.
¿Podría Tailandia informar con mayor detalle cómo funciona el subcomité de lucha contra las infracciones de la propiedad intelectual ¿Qué resultados se han obtenido desde la implementación de este subcomité?
Question
¿Podría Tailandia informar con mayor detalle que herramientas específicamente se incorporaron en a la Ley de Delitos Informáticos dirigidas a combatir más eficazmente las infracciones de la propiedad intelectual en línea ¿Qué resultados se han obtenido?
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Question
3.70 La Hoja de Ruta abarca seis esferas: 1) la creación de propiedad intelectual, 2) la protección de la propiedad intelectual, 3) la comercialización de la propiedad intelectual, 4) la observancia de la propiedad intelectual, 5) las indicaciones geográficas y 6) los recursos genéticos, los conocimientos tradicionales y las expresiones culturales tradicionales. Desde su adopción, la Hoja de Ruta ha orientado el desarrollo del sistema de propiedad intelectual del país, y los organismos competentes, encabezados por el Departamento de Propiedad Intelectual (DIP) del Ministerio de Comercio, la están aplicando.
¿Qué acciones se han incluido en la espera concerniente los recursos genéticos, los conocimientos tradicionales y las expresiones culturales tradicionales? ¿Existe algún mecanismo legal para la protección de estos activos a través de la propiedad intelectual?
Question
3.74. Tailandia está modificando la Ley de Patentes, E.B. 2522 (1979), tanto la sección relativa a las patentes como a los dibujos y modelos industriales. En la sección relativa a las patentes, la modificación se centra en simplificar los procedimientos de registro de patentes, garantizar la conformidad con el Protocolo por el que se enmienda el Acuerdo sobre los ADPIC y regular la tramitación de las solicitudes de patentes relacionadas con los recursos genéticos y los conocimientos tradicionales. En la sección relativa a los dibujos y modelos industriales, la modificación se centra en simplificar los procedimientos de registro de los dibujos y modelos industriales y sentar las bases para la adhesión de Tailandia al Arreglo de la Haya.
¿La modificación a la Ley de Patentes contempla las flexibilidades sobre licencias obligatorias e importaciones paralelas que contempla el ADPIC? ¿Cómo se están aplicando estos temas?
.
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ECUADOR
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Pág. 58, párrafo 3.20
"Se aplican derechos alternativos (es decir, un tipo ad valorem o un derecho específico, según cuál de ellos sea más elevado) a 823 líneas arancelarias".
Al respecto, podría indicarnos Tailandia:
Question
¿Cómo se administra la aplicación de los derechos alternativos para un mismo producto, en relación a la diferencia existente entre el nivel arancelario ad valorem y específico?
[How is the application of alternate rates administered for the same product, in relation to the difference between the ad valorem rate and specific duty?]
Answer
Having calculated the tariff for a particular product by using the ad valorem and the specific duty rates, importers pay the higher tariff obtained from the calculation.
Question
¿Qué criterios de aplicación se utilizan además del nivel del arancel?
[What criteria are used to the level of the tariff?]
Answer
The level of tariff is set according to the country's economic situation and industry investment environment. Should there be any circumstances such as changes in economics, trade or investment which make tariff reductions deem appropriate or necessary, the tariff structure will be revised accordingly.
Question
¿Cómo esta medida ayuda al principio de previsibilidad en beneficio de los importadores?
[How does this measure help the predictability principle for the benefit of importers?]
Answer
The calculation method is rather straightforward. Hence, the importer can predict the tax burden and the benefits of importing before the import.
Question
¿Se publican las dos alternativas de derechos alternativos y criterios de aplicación, o se definen internamente?
[Are the two alternate rates and criteria published, or defined internally?
Answer
The two alternate rates are published.
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Pág. 62, Cuadro 3.4
"Líneas arancelarias sujetas a tipos aplicados más altos que sus tipos consolidados".
Question
Según se puede observar, el EAV del tipo aplicado sería más alto que el techo consolidado para ciertos productos. ¿Podría indicarnos Tailandia cómo esa diferencia se ajusta a los compromisos de su Lista de Concesiones y si tiene previsto realizar algún ajuste en el marco de sus compromisos de consolidación?
[As can be seen, the AVE of the applied rate is higher than the bound rate for certain products. Could Thailand tell us how this difference is in line with its Schedule of Concessions commitments and if Thailand plans to make any adjustments under its binding commitments?]
Answer
The imposed tariff rates are not higher than the bound rates. Some of these tariff rates are reduced by Free Trade Agreement negotiations. However, when revising the possibility of reducing tariff rates, the government has to concern about tariff revenues in the short term, and also fiscal sustainability in the long term.
Pág. 64, Párrafo 3.36
Reconociendo que se trata de una medida diferente a una licencia de importación no automática, pero que afectaría también a las importaciones:
Questions
¿Podría explicarnos Tailandia cómo los recargos a la importación de harina de pescado, con un contenido de proteínas superior al 60%, afecta al precio de materias primas para piensos y su estabilización?
[Could Thailand explain how import surcharges for fish meal with a protein content of more than 60% affect the price of feed materials and their stability?]
¿Podría indicarnos Tailandia si esos recargos se cobran en forma de impuestos, tasas u otras figuras impositivas?
[Could Thailand tell us if these surcharges are collected in the form of taxes, fees or other tax figures?]
¿Bajo qué disposiciones de la normativa multilateral se justifican esos recargos?
[Under what provisions of the multilateral regulations are these surcharges justified?]
Considerando que se tratan de impuestos internos recaudados en frontera, a la importación de productos similares, sustitutos, directamente competidores de los de producción nacional ¿Podría indicarnos Tailandia cómo la medida se ajusta a su compromiso en materia de no discriminación, trato nacional?
[Considering that these are internal taxes collected at the border, on the importation of similar products that are substitutes or directly competitive with those of national production, could Thailand indicate how the measure is in line with its commitment regarding non-discrimination, national treatment?]
¿Qué sucede con los productos nacionales similares, sustitutos, directamente competidores, deben pagar algún tipo de recargo similar y bajo qué figura impositiva lo harían?
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[What happens with similar domestic products that are substitutes or directly competitive with the imports? Must they pay some types of similar surcharge and under what tax figure would they do it?]
Answers
Currently, the import surcharge of this product is at 0 Baht/Ton. Thus, is measure does not affect the price of feed materials and their stability.
The import surcharges of fish meal content more than 60% are collected in form of charges imposed on imported goods.
The import surcharge of fish meal content more than 60% is currently at 0 Baht/Ton. This apply to all FTAs and from every country. Thus, it is non-discrimination.
Pág. 64, párrafo 3.38
"…el Ministro de Comercio, con la aprobación del Consejo de Ministros, puede publicar notificaciones en la Gaceta Oficial para restringir las importaciones (y las exportaciones) por motivos tales como la estabilidad económica, la salud pública, la seguridad nacional, la paz y el orden, la moral o cualquier otro motivo de interés nacional".
Questions
¿Podría indicarnos Tailandia cómo una restricción a las importaciones coadyuvaría a conseguir el objetivo de estabilidad económica, cómo se ajusta esta medida a la normativa multilateral?
¿Qué variables de carácter económico se evaluarían para alcanzar ese objetivo?
[Could Thailand tell us how the restriction on imports would help to achieve the objective of economic stability? How does this measure comply with multilateral regulations?]
[What economic variables would be evaluated to achieve this objective?]
Answer
To supervise the import - export have quality/standard and correspond with an internal demand. The import – export measures under the Export and Import Act B.E. 2522 (1979) under the Ministry of Commerce are complied with the WTO rights and obligations.
Pág. 64, párrafo 3.39
En relación a la disposición normativa que permitiría la prohibición de las importaciones de mercancías que compitan con las producidas por una rama de producción nacional, con miras a prestar asistencia a esa rama de producción.
Questions
Según las autoridades la BOI no ha presentado solicitudes de ese tipo, no obstante ¿Podría informarnos Tailandia bajo qué disposiciones de la normativa multilateral se justificaría esa prohibición?
¿Qué criterios debería cumplir una rama de producción nacional para que el BOI pueda solicitar esa restricción? ¿La asistencia técnica, de qué se trata, qué temas se incluirían en la misma?
¿A nivel bilateral, en sus ACRs, Tailandia ha negociado alguna disposición que permita la aplicación de esa posible prohibición?
[According to the authorities, the BOI has not submitted such requests, however, could Thailand inform us under which provisions of the multilateral regulations such a ban is justified?]
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[What criteria must a domestic industry meet for the BOI to request such a restriction? Is there any technical assistance and what topics would be included in the technical assistance?]
[At the bilateral level, in its RTAs, has Thailand negotiated any provision that allows the application of this possible ban?]
Answers
Under the Investment Promotion Act (1977), BOI has no direct authority to impose import restriction on any products. The measure is under the consideration of the Ministry of Commerce under the requirement of the Export and Import of Goods Act, B.E. 2522 (1979).
Pág. 66, Cuadro 3.7
Productos sujetos a prescripciones en materia de licencias de importación 2020, respecto de la medida a la harina de pescado con un contenido de proteínas inferior al 60%.
Questions
¿Podría indicarnos Tailandia cómo esa medida (licencia no automática) ayuda a estabilizar el precio de materias primas para la fabricación de piensos?
¿Qué sucede con la producción nacional de harina de pescado con un contenido de proteínas inferior al 60%? ¿Cómo se administra su consumo y comercialización?
[Regarding the measure for fish meal with a protein content of less than 60% in Table 3.7, could Thailand tell us how this measure (non-automatic license) helps to stabilize the price of raw materials used for animal food?]
[What happens to the national production of fish meal with a protein content of less than 60%? How is its consumption and marketing managed?]
Answer
To control the proper amount of importation of fishmeal not affect the overall price raw material used for animal in the country.
Pág. 74, Cuadro 3.11
Otros productos sujetos a prescripciones en materia de exportación, 2020 sobre el atún en contenedores herméticamente cerrados.
Question
¿Podría indicarnos Tailandia el objetivo de la medida, con mayor detalle, en relación a la interpretación de la situación actual del comercio?
[Regarding tuna in airtight containers mentioned in Table 3.11, could Thailand tell us the objective of the measure in more detail, in relation to the interpretation of the current trade situation?]
Answer
To control the quality/standard and promote the export To correspond with national standard.
Question
¿Por qué razón sólo se permitiría la exportación a los Miembros la Asociación Tailandesa de Elaborados de Alimentos o de la Asociación Tailandesa de Industrias Atuneras?
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[Why are only the Thai Food Processors' Association or the Thai Tuna Industries Association allowed to export?]
Answer
In order to export this product, exporter have to be the member of Thai Food Processors' Association or the Thai Tuna Industries Association. Currently, there are 265 members in total.
Págs. 75 y 76, párrafos 3.72 y 3.73
Respecto de la medida de compensación de impuestos y derechos sobre los productos de exportación producidos en el Reino en relación a lo siguiente: "El monto de la compensación de impuestos y derechos corresponde a un porcentaje fijo del valor f.o.b. de las exportaciones, y se calcula teniendo en cuenta la proporción de materias primas e insumos utilizados en la producción (según las tablas de insumo/producto) y su tipo arancelario medio".
Questions
¿Podría indicarnos Tailandia cómo la medida se ajusta a las disposiciones en materia de subvenciones prohibidas del Acuerdo sobre Subvenciones y medidas Compensatorias de la OMC?
¿Cómo se asegura Tailandia que la tasa de compensación no exceda del valor de impuestos o derechos efectivamente pagados por el exportador?
[Could Thailand tell us how the measure complies with the prohibited subsidies provisions of the WTO Agreement on Subsidies and Countervailing Measures?]
[How does Thailand ensure that the compensation rate does not exceed the value of taxes or duties actually paid by the exporter?]
Answers
Thailand's tax and duty compensation for exported goods is under Tax and Duty Compensation of Exported Goods Produced in the Kingdom Act B.E. 2524 (1981) (http://www2.fpo.go.th/FPO/modules/Content/getfile.php?contentfileID=14327) which complies with Annex I (i) and Annex II (1) of Agreement on Subsidies and Countervailing Measures.
Pág. 92, Cuadro 3.19
Subvenciones notificadas a nivel sectorial. En el marco del Programa de Compensación para Propietarios de Embarcaciones Pesqueras Afectados por la Medida de Eliminación de Embarcaciones Pesqueras Adoptada por el Gobierno.
Questions
¿Podría indicarnos Tailandia si las donaciones se otorgan por una sola vez a los operadores/pescadores que se han visto afectados por la medida?
¿Qué sucede con las embarcaciones a las que se les prohibió pescar de forma permanente en aguas tailandesas, pueden pescar fuera de su mar territorial?
¿Qué sucede cuando se alcanza el máximo rendimiento sostenible, se autoriza nuevamente la pesca a esas embarcaciones?
[Regarding the fishing vessel-buying programme to help fishermen affected by the Government combating IUU fishing, could Thailand tell us if the grants are awarded only once to the operators/fishers who have been affected by the measure?]
[What happens to the vessels that were permanently banned from fishing in Thai waters? Can they fish outside their territorial sea?]
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[What happens when the maximum sustainable yield is reached? Are those vessels allowed to fish again?]
Answers
The compensate scheme to help fishermen affected by the Government combating IUU fishing is a one-time payment.
1) Vessels banned fishing in Thai waters were not permitted to request for a fishing license and thus are incapable of doing fishing in both Thai waters and outside Thai waters.
2) The vessels participating in the buy-backs and compensation scheme will be continued to build artificial reefs and demolished out of the fishing effort.
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EUROPEAN UNION
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
SUMMARY
Paragraph 9, Page 9 (see also Sections 4.5.2.3 and 4.5.3.3)
"There were no major changes to Thailand's foreign investment regime during the review period. While some steps were taken to liberalize FDI in infrastructure development and in certain services industries, restrictions on foreign participation remain in several sectors, such as media, rice farming, fisheries, mining, transportation, financial services, telecommunications, transport, and tourism."
Question 1
The paragraph explains that there were no major changes to Thailand's foreign investment regime and that restrictions on foreign participation remain in several sectors. Does the government envisage any liberalisation in the coming years, including concerning the limitation on foreign shareholding in different sectors (e.g. tourism, terrestrial and maritime transport), especially as a way to recover from the crisis and develop a solid manufacturing and services base, furthering the goals of the Thailand 4.0 strategy?
Answer
For the Department of Land Transport, according to Land Transport Act B.E. 2522 (1979) Article 24, Private ownership in providing freight transport is allowed for up to 100% and foreign participation may not exceed 49% of the equity. However, in the near future, there would not be any changes in the aforementioned act.
For Tour Operators and Travel Agents, the government does not have any plans for liberalisation yet in the coming year.
In Thailand, international maritime transport is open for vessels of all nationalities. Although Thai- flag vessels engaged in international voyages are required to maintain limitation on Thai to foreign equity (51/49), this does not prevent vessels flying foreign flag from taking part in Thailand's international maritime trade. As the Thai merchant fleet has accommodated only about 10% of the country's foreign trade for more than four decades, there is always room for foreign vessels to tap on the rest of this huge market. In addition, no discriminatory treatments are imposed at major public ports in Thailand.
For domestic maritime trade, vessel operators engaged in Thai territorial waters are required to maintain stricter limitation on Thai to foreign equity (70/30) due to national security reason. However, certain exemptions can be allowed under Article 47 of the Thai Vessels Act, B.E. 2481 (1938) and as amended. The first paragraph of this Article stipulates that such limitation may be relaxed in compliance with relevant provisions of international treaties or agreements that Thailand has concluded with other countries, while the second paragraph requires the permission granted by the Minister of Transport to use foreign vessels if Thai vessels are not sufficient to provide services in Thai territorial waters.
Paragraph 14, Page 10 (see also paragraphs 3.106, page 75 and 3.126 - 3.129, page 139)
"Thailand maintains a myriad of tax and non-tax investment incentives schemes, with a rather complex structure. These include the incentives provided by the Board of Investment, and those offered to special economic zones, SMEs, and certain sectors such as farming, fishing, and renewable energy. Among the main support measures introduced during the review period are: incentive packages for promoted activities under the Eastern Economic Corridor (EEC) Act (May 2018); a tax incentive scheme operated by the Revenue Department to promote Thailand as an international business centre (October 2018); and the "Thailand plus" package to attract foreign businesses to relocate to Thailand and to expedite large-scale investment (September 2019). As there is no specific
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Question 2
Paragraph 14 states that there is a myriad of tax and non-tax investment incentives schemes with a rather complex structure, and Section 3.3.1.2.4 provides information on the specific incentives in the EEC provinces. Are there any plans to streamline the use of investment incentives/apply the EEC incentives across the country? Have there been any evaluation in the usefulness of the existing incentives and their impact on competition?
Answer
EEC plays an important role as a regulatory sandbox uplifting the country's competitiveness, initially focused on the three Eastern provinces, namely Rayong, Chonburi, and Chachoengsao. The useful case will be considered applied to any certain area across the country. A plan to streamline the use of investment incentives is currently under consideration. Regarding the evaluation, Thailand Board of Investment conducts the assessment and evaluation of investment promotion policy every two years.
2 TRADE AND INVESTMENT REGIMES
2.1 General Framework
Paragraph 2.7, Page 34
"In 2017, the Government issued its 20-Year National Strategy (2018-37), developed by the Office of the National and Economic Development Council (NESDC). The National Strategy's main goal is for Thailand to attain developed country status and to transit to a digital economy, based on the principle of self-sufficiency."
Question 3
Can Thailand share more information on its plans to reach a developed country status by 2037?
Answer
Section 65 of the Constitution of the Kingdom of Thailand stipulates that the State should develop a national strategy which to be employed as the country's goal for sustainable national development in accordance with the principle of good governance. The National Strategy shall be employed as a framework for formulating consistent and integrated plans in a congruous drive to achieve the aforementioned goals in accordance with the rules and procedures enumerated by national strategy legislation. In this context, the National Strategy Act B.E. 2560 (2017) was drawn up and the National Strategy Committee (NSC) has been mandated to develop the draft National Strategy. The Act also specifies procedures for public participation in formulation of the National Strategy, including monitoring, inspection and evaluation, and measures for encouraging and supporting all civic sectors to comply with the National Strategy. The National Strategy (2018-2037) is the country's first national long-term strategy developed pursuant to the Constitution. It shall be pursued to ensure that the country achieves its vision of becoming "a developed country with security, prosperity and sustainability in accordance with the Sufficiency Economy Philosophy" with the ultimate goal being all Thai people's happiness and well-being.
The implementation of the National Strategy is cascaded through levels of plans as endorsed by the Cabinet's resolution on 4th December 2017. National Strategy is the 1st level of plans; followed by 4 2nd level of plans including 23 Master Plans under the National Strategy, 13 Country Reform Plans, 12th National Economic and Social Development Plan and National Security Plan; and government agencies' 3rd level of plans.
23 Master Plans under the National Strategy are a key implemented tool to evaluate milestones of achievement as they have targeted goal values specified for each five years. Furthermore, the Cabinet, on 3rd December 2019, endorsed the key responsible government agencies for each Master
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Plans with the main task being to ensure collaboration and integration between related government agencies to move forward to the same direction to successful achieve the vision.
2.3 Trade Agreements and Arrangements
2.3.1 WTO
Paragraph 2.18, Page 37
"With respect to its transparency obligations, Thailand has maintained a good record of notifications to the WTO. However, notifications on agricultural domestic support for recent years remain outstanding".
Question 4
The latest notification by Thailand in relation to agricultural domestic support (G/AG/N/THA/85) dates back to 2017 and covers domestic supports for 2014 – 2016. Can Thailand provide information about its plan to notify agricultural domestic supports for the period after 2016?
Answer
The Ministry of Commerce is collecting information from the relevant authorities. Once we received all information, we will notify to the COA.
2.3.2 Regional and preferential agreements
2.3.2.2 ASEAN
Paragraph 2.26, Page 40
"Progress was also made in the harmonization of technical regulations and the conclusion of ASEAN mutual recognition agreements in several sectors".
Question 5
Could Thailand provide information on the state of play with regard to the ASEAN mutual recognition agreements for automobiles and automotive parts?
Answer
ASEAN Member States, including Thailand, approved the draft ASEAN MRA on Type Approval for Automotive Products (ASEAN APMRA). AMSs agreed to proceed with the signing on ad-referendum basis via diplomatic channel. Expectation is that all 10 AMSs will be complete the signing before the end of year 2020.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.1 Customs procedures, valuation, and requirements
3.1.1.1 Registration and documentation
Paragraph 3.1, Page 48
"Thailand's customs procedures are governed mainly by the Customs Act B.E. 2560 (2017), which came into force on 13 November 2017.1 The Act, which repealed the Customs Act B.E. 2469 (1926), aims to modernize Thailand's customs law by easing customs procedures and bringing more transparency".
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Question 6
Since the entry into force of the revised Customs Law in November 2017, is Thailand in a position to share an assessment of its implementation? If not, could Thailand indicate how it plans to monitor the actual easing of customs procedures and the benefits it effectively brings to businesses? Could Thailand share a list of implementing regulations that have been adopted to accompany the application of the new Customs law? Are these implementing regulations publicly accessible in English? To complement on the regulatory tools, could Thailand indicated if the custom authorities produced administrative guidelines to ensure a harmonized implementation of the measures across the country, as well as practical guidelines intended for economic operators in order to foster compliance?
Answer
Since the Customs Act B.E.2560 (2017) has become effective on 13 November 2017, Thailand has follow-up measures after the entry into force of law as follows:
1) Assessment of implementation: An assessment of implementation of law is not required. However, an assessment of legal content itself is obliged by section 258 of the Thai Constitution B.E. 2560 (2017) and the procedure of doing so is stated in section 34 of Drafting And Assessment of law Act B.E. 2562 (2019). Thus, we must evaluate and review the customs act every 5 years after the date of execution. During the process, other governmental bodies and private sectors shall be invited to participate. The scope of review is relevant to the proportionality between benefits and burdens of individuals caused by the implementation of law, the record of criminal procedure and penalties and the consistency of international laws.
2) List of Implementing Regulations: Due to the new customs act, all subsidiary laws according to the previous customs act was automatically unenforceable unless they do not conflict or contradict provisions of the new one. Thus, subsidiary laws, which are royal decree, ministerial regulations, notifications of the ministry of finance, notifications of the customs department, regulations and general order of the customs department, were issued in replace. There are 200 – 300 hundred of subsidiary laws issued in relevant. The list of them can be found on www.customs.go.th for Thai version and www.thailandntr.com for English version (There is no English translation of the content).
3) Complement of Regulatory tools: The administrative guideline is available for customs officials in the form of Customs Practice Code ("CPC") in order to gather all regulations and general orders issued in accordance with the new customs law. Therefore, the operation and discretion on customs matters would be controllable and consistent. Concurrently, practical guidelines are provided in the form of manual concluding laws and regulations on which importers or exporters shall access via online. The manual was written in accordance with Licensing Facilitation Act B.E. 2558 (2015) aiming to increase the compliance of law and ease of doing business.
Thailand has appointed a working group of government and private sectors to facilitate the import and export by issuing an order of the Customs Department No. 489/2562. The purposes are providing opportunities for those who involved in import and export, participating in the exchange of ideas and recommendations on development improving work patterns and methods for efficient integration, and meeting the needs and facilitate the import and export.
The duties and responsibilities are as follows:
1. Discuss problems and obstacles in the implementation of import and export. As well as propose solutions for problems.
2. Coordinate with relevant departments to perform various actions and be able to resolve problems effectively.
3. Follow up on the implementation of various problems.
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4. Invite experts, practitioners, or related parties to give information, documents, or suggestions for consideration.
5. Advisors of the working group or heads of the working group empowers to appoint a sub-working group as appropriate.
6. Report on the implementation of the Director-General of Customs
7. All agencies under the Customs Department cooperate to perform the duties of the working group efficiently.
Paragraph 3.11, Page 50
"According to World Bank Doing Business data, in 2020, Thailand was ranked in 62nd place (down from 59th in 2019) out of 190 economies in the ease of trading across borders, better than the East Asia and Pacific regional average[…]".
Question 7
Could Thailand please provide information on how it promotes ease of doing business?
Answer
(1) Enhancing effectiveness of targeting profile by using risk-based management to reduce physical inspection rate: Thai Customs Department developed the "Profile System" in order to help customs officers to better select which shipments should or should not be inspected by using risk-based analysis. As a result, it helps to facilitate low-risk importers/exporters while maintaining the efficiency of customs control. Likewise, it can reduce cost of importers/exporters such as Customs broker fees, Cost of container movement, Container storage, and etc.
(2) Increasing of three Fast Scan: Drive – Through X-RAY container machines: World Customs Organisation (WCO) gave an advice towards customs around the World about using X-Ray technology for goods inspection. This is because by using advance X-Ray technology, this will help customs inspection process to be non-intrusive inspection. With this regard, Thai Customs has increased 3 more X-Ray scanners at Laem Chabang Port in order to strengthen scanning capabilities to be non-intrusive inspection. The new scanners create the benefits related to the reduction of time and increase the effectiveness of x-ray process as follows:
(2.1) The new drive-through X-Ray scanners are high throughput of 150 container units per hours which increasing 5-time capability of X-Ray scanning as compared to the two existing old version (fixed inspection scanners) where throughput only 30 units per hour.
(2.2) Allow drivers to drive through the scanners tunnel directly at speed up to 15 km. per hour without stopping the vehicle and any image distortion.
(2.3) Advance technology in global standard (IAEA, WHO, ICRP, ANSI, N43.17, U.S.NRC, EURATOM, IEC62523) as these drive-through scanners are used across the world such as Singapore, China, Netherlands, Poland, U.A.E., Brazil and so on.
(2.4) Reduce time waiting of the truck/vehicle queue on x-ray scanner line. To highlight, normally, the X-Ray process is using the fixed inspection scanners which all drivers must stop the truck/vehicle for proceeding the X-Ray process. On the contrary, the new Fast Scan scanners, there will be NO TIME WAITING FOR THE QUEUE.
(3) Pre-Arrival Processing (PAP): Pre-Arrival Processing is one of the important customs measures to facilitate international trade as referred to in the article 7 of Trade Facilitation Agreement (TFA) of WTO. According to the PAP notification of Thai Customs Department Customs No. 5/2561 dated 10 January 2018, the airline companies are required to send the airline manifest one hour after the plane takes off from originating country whereas the ship agents are required to send the manifest at least 24 hours before the arrival of the vessels. At the beginning, Pre-Arrival Processing system started implementation as a pilot project on 1 February 2018 (in almost all Customs Bureaus and
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Customs Houses, except Laem Chabang Port where started implementation on 1 March 2018). Since 1 May 2018, Pre-Arrival Processing system began full implementation in all Customs Bureaus and Customs Houses. The system allows the advance electronic submission, which causes two benefits to the importers namely:
(3.1) since shippers/importers are required to submit manifest data prior to the arrival of vessel, customs will be able to conduct better and efficient risk-based management in advance by using information from advance electronic submission. As a consequence, the exporters/importers who pose low risk will be further facilitated.
(3.2) when ship/plane arrive, the importers/customs brokers can submit declaration and pay duty/tax faster than it used to be due to the fact that, with PAP, manifest is submitted to the customs system before the arrival of vessel in comparison with the previous time when the manifest submitted after the arrival within 24 hours after ship arrival. The manifest received by customs will allow importer and customs brokers are able to start submitting declaration.
3.1.2 Tariffs
3.1.2.3 Applied tariff
Paragraph 3.28
"According to Thailand's Tariff Schedule for 2020, provided by the authorities and also notified to the IDB, the applied rates on a number of tariff lines are higher than the bound rates (Table 3.4). The authorities indicate that this is not the case, using as evidence a 2017 notification from the Ministry of Finance (in Thai only)."
Question 8
Can Thailand explain the level of applied tariffs for the goods listed in Table 3.4. and confirm that the applied tariffs are not higher than bound tariffs?
Answer
Thailand's applied tariff rates under The Ministry of Finance RE: Exemption Duty, Decreasing and Increasing Customs Duty Tariff rate under the obligations of Marrakesh Agreement Establishing The World Trade Organization, dated 10 November B.E. 2560 (2017) totally comply with the bound rates under WTO, while applied tariff rates under other Notifications besides the said Notification are applied to non-WTO members. The exporters/importers from WTO member countries must indicate their origin during the customs procedures in order to get the WTO applied tariff rates.
Additionally, according to the notification, Thailand committed tariff rates for Barley other than seed under the tariff code 1003.90.00 at 27%, for Other cereals under the tariff code 1008.90.00 at 27%, for Toothpicks of bamboo under the tariff code 4421.91.60 at 20% and for Toothpicks of wood other than bamboo under the tariff code 4421.99.80 at 20%, all in ad valorem rate. When concerned products imported from WTO member's country, the rate as mentioned above will be applied.
3.1.1.1 Registration and documentation
3.1.4 Import prohibitions, restrictions, and licensing
3.1.4.2 Import licensing
Table 3.7 Products subject to import licensing requirements, 2020, page 58
Question 9
In view of the obligations for WTO members under Article 5 of the Agreement on import licensing procedures, could Thailand clarify its intentions with respect to the notification of (i) its import licence regime for feed wheat (HS 10019990 – not listed in the report) and of (ii) the draft Regulation of
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Answer
Before issuing any import measures, Thailand also considers the obligation for WTO members under the Article 5 of the Agreement on Import Licensing Procedure. The intentions of issuing the Ministerial Notification on import license regime for feed wheat is to relieve the suffering of maize fit for animal feed's growers in domestic country who are affected by large quantities of wheat substitution for maize's importation.
3.3 Measures Affecting Production and Trade
3.3.1 Incentives
3.3.1.1 Taxation
Paragraph 3.98, Page 73
"The standard statutory VAT rate is 10%, although the applied rate is 7% (until 30 September 2020, unless further extended by the Government)."
Question 10
Could Thailand indicate whether it intends to maintain the said lower rate, and if so for how long?
Answer
The Cabinet approved the proposal from the Ministry of Finance to maintain the reduced VAT rate of 7%, effective from 1 October 2020 to 30 September 2021. The revision of the VAT rate depends on country's economic circumstances at that time.
3.3.3 Sanitary and phytosanitary requirements
Paragraph 3.152, Page 85
"[…] there have been no major changes to Thailand's sanitary and phytosanitary regime. Relevant legislation includes […] Agricultural Standard Act (3rd edition) B.E. 2561 (2018), which assigns agencies to issue licences to manufacturers, exporters, or importers of agricultural products".
Question 11
Could Thailand provide an update on the amendment of Agricultural Standard Act, leading to the transfer of authority in the import controls and authorisation process from the FDA to the Ministry of Agriculture and Cooperatives (i.e. the Department of Livestock Development (DLD) and the Department of Agriculture (DOA))? So far, what are the agricultural products for which the FDA has already transferred the import control tasks to the DLD or the DOA? Which agricultural product authorisations remain with the FDA?
Answer
There may be some misunderstanding regarding the transfer of authority. The FDA did not transfer full authority over the import control to the DLD. The FDA only transfers authority of products inspection (at border inspection post) to the DLD. These products refer to the raw meat. The content in Agricultural Standard Act B.E. 2551 (2008) does not include any information about the transfer of authority in the import controls and authorization process from the FDA to the Ministry of Agriculture and Cooperatives.
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Please see a list of products that the FDA transferred its authority in the import controls and authorisation process to the Ministry of Agriculture and Cooperatives at https://www.fda.moph.go.th/sites/logistics/Shared%20Documents/Other/HScodeTransfer.pdf.
Paragraph 3.158, Page 87
"Licences, renewed every three years, are issued by the FDA before the importation or manufacturing of food products".
Question 12
Could Thailand explain why the licenses are required to be renewed at a fixed period (i.e. every three years) [and on site re-audits are required every three years by DLD for import authorisation of animals and animal products], rather than relying on other criteria that may be more suitable?
Answer
Food Act B.E. 2522 (1979) requires that licenses for food premises and importation shall be valid until 31 December of the third year from the date of issuance.
The fixed period is for an evaluation of food safety and animal health control in exporting countries concerning the export of animal and animal products to Thailand. If there is no historical risk (chemical, physical, and biological) during three years of importation, the importation approval will be prolonged.
3.3.4 State trading, state-owned enterprises and privatization
3.3.4.2 SOEs
Paragraphs 3.177 and 3.178, Page 90
"[…] the PPP Fast Track Process was another effort by the Government to eliminate red tape and bottlenecks in the approval procedures of infrastructure projects […] the PPP Fast Track measures used in previous PPP Law (PISU Act) were incorporated into the PPP Act 2019, to streamline the PPP projects. The SEPO is also preparing the new PPP Delivery Plan (PPP Plan), which is consistent with the National Strategy prepared by the Office of the National Economic and Social Development Council". "The EEC Fast Track governs all PPP projects within the three provinces through the EEC Policy Committee"
Question 13
Could Thailand provide information on (i) the state of play of the preparation of the new PPP plan, (ii) its intended scope (e.g. covered contracts), and (iii) how it would relate to on-going PPP projects listed in the PPP strategic Plan (2017-2021) and to those listed in the PPP fast track scheme under PISU Act?
Could Thailand clarify if the EEC Fast Track is governed by the same legislative framework as other PPP projects or by a different framework?
Answer
The PPP Delivery Plan is a long-term plan, which contains 92 PPP projects. The PPP projects are categorized based on the priority and urgent need of PPP Projects under the Plan into three groups, which are (1) High Priority, (2) Normal, and (3) Initiative.
The prioritization will help monitor and follow up PPP projects to be proposed to the PPP Committee according to the Plan. In addition, the line ministry shall also report a summary of implementation, progress, and problems and obstacles with regard to projects under the Plan to the PPP Committee at twice a year for the PPP Committee's further consideration.
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The undertakings of projects under the EEC Track will be subject to Eastern Special Development Zone Act B.E. 2561 (2018), under the responsibility of The Eastern Economic Corridor Office of Thailand. In the meantime, the undertakings of PPP projects will be subject to the PPP Act 2019, which is a different Act.
3.3.5 Government procurement
3.3.5.2 Legislation, general policies and institutional arrangements
Paragraph 3.185, Page 92
"In order to allow flexibility and achieve expediency of their procurements, SOEs, universities under state supervision and foreign-located state agencies are allowed to put in place their own rules, subject to approval by the Policy Commission."
Question 14
Could Thailand clarify whether the SOEs, universities and foreign-located state agencies have completed their own procurement rules, and if there is a publicly accessible and updated central database of these rules?
Answer
The Public Procurement and Supplies Administration Act B.E. 2560 (2017) explained that "In order to engender flexibility and expediency of operations of a State enterprise, a university under supervision of the State, a State agency in a foreign country or a work unit of a State agency located in a foreign country or any other State agency as prescribed in the Ministerial Regulation, such State enterprise, university under supervision of the State or State agency may, if it so intends, put in place its own Rules, Regulations or Ordinances relating to procurement and supplies administration in whole or in part, provided that it shall be done in conformity with the rules on procurement and supplies administration framed under this Act unless, in a foreign country where the State agency or a work unit of the State agency is located, laws, practices or local customs specifically exist or provide otherwise". General information about Thai government procurement can be found on the website www.gprocurement.go.th (only in Thai language).
Paragraph 3.186, Page 92
"Thailand does not allow direct cross-border participation of foreign suppliers in its government procurement contracts. The CGD maintains a mandatory registration system for business operators that wish to participate in Thailand's government procurement. The registration should be filed according to the criteria, procedures and conditions prescribed in relevant ministerial regulations. Generally speaking, a supplier eligible for registration must be a juristic person registered in Thailand. S/he must have an office located in Thailand, and half of the board directors must hold Thai citizenship. Regarding the registration of consultants, independent consultants must be Thai citizens and, in the case of juristic persons, they should be juristic persons in Thailand, with no less than 51% of their total shares held by Thai citizens."
Question 15
The report mentions that the new legislation, namely, the Public Procurement and Supplies Administration Act B.E. 2560, adopted in August 2017, has among its objectives the promotion of fair competition. However, in Paragraph 3.186 it is noted that Thailand does not allow direct cross- border participation of foreign suppliers in its government procurement contracts. This is in contrast with the principle of open and fair competition.
- Please provide any details as to whether there is any plan in Thailand to enable cross border participation of foreign products and suppliers to public procurement tenders.
- Furthermore, could Thailand clarify if the lists of eligible suppliers are completed and whether international bidding is allowed and, if so, under which criteria?
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Answer
The Public Procurement and Supplies Administration Act B.E. 2560 (2017) does not mention about direct cross-border participation of foreign suppliers. It depends on the requirement of procuring entities whether to procure products from overseas suppliers. Foreign suppliers that would like to participate in government procurement have to register in procurement system by submitting registration form in-person at the Comptroller General's Department. In term of international procurement, Regulation of Ministry of Finance on public procurement and supplies administration B.E. 2560 (2017), Clause 60 explained that:
1) The state agencies provide a draft of scope of work or specifications of supplies or construction plan to be procured.
2) Provision of procurement documents for the international price tender method and solicitation notifications shall be at the discretion of the head of State agency whether to be in the Thai or English language.
3) The publication of notifications or procurement documents shall be published for at least 30 consecutive business days.
Regarding to doing business in Thailand, foreign suppliers have to follow Foreign Business Act, B.E. 2542 (1999).
3.3.5.3 Procurement methods
Paragraph 3.188, Page 94
"The procuring entities are obliged to give preference to domestic suppliers to which the State intends to promote or support".
Question 16
In addition to supplies stipulated in the Ministerial Regulation on Determining Supplies and Procurement Methods that the Government Wants to Promote or Support B.E. 2563 (2020), could Thailand provide additional information on other existing "Buy Thai" policies (e.g. the provisions regarding products and services that the government would like to promote or support, the compulsory use of Thai Industrial Standards and the Thailand Innovation List)?
Answer
The Ministerial Regulation Prescribing of supplies that the State needs to Promote or Support (No. 2) B.E. … has detail about products and services that government would like to support and promote. However, the regulation has not been enacted yet as it is in the process of Cabinet and Council of State of Thailand approval. The Ministerial Regulation mentions "Made in Thailand" which is not "Buy Thai" policies. However, Thailand has policies to support Thai SMEs that is same as many countries and support the following:
1. Supplies for agricultural promotion and development
2. Supplies for medium-small enterprise and disadvantaged person promotion
3. Supplies for learning purpose
4. Supplies for research promotion and development or provision of educational services
5. Supplies for promotion of innovation
6. Supplies for health and public health promotion
7. Supplies for promotion of stability of energy and natural resources.
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In addition, Department of Industrial Promotion (DIP), as a government agency in charge of promoting and supporting Thai's SMEs, aims to support Thai entrepreneurs by helping them to standardize their products and production processes. DIP expects to increase consumer trust in Thai products so that the consumers can purchase Thai products confidently. DIP also encourages Thai entrepreneurs to improve production process by introducing new technologies and enhancing their capacity. Additionally, DIP urges Thai entrepreneurs to apply for Thai Industrial Standard to ensure the quality of their products.
DIP also advocates entrepreneurs, such as those in medical and healthcare industry, to enroll their products in Thailand Innovation List to benefit from the privilege in government procuring process. DIP plays roles in giving advice on documents preparation and enrollment process.
3.3.5.4 Electronic government procurement
Paragraph 3.190, Page 95
"Thailand introduced an electronic government procurement system (e-GP system) in April 2010. The Comptroller General's Department is responsible for the development and promotion of the system.116 The system started with pilot projects covering a limited number of procurement entities and procurement methods, and was gradually extended to other procurement entities, with the aim of including all government procurement contracts. During the review period, the e-GP system concluded its Phase 3 projects and entered Phase 4 projects on 24 August 2017. Phase 4 projects are aimed at bringing the system in line with the new Act and, in particular, enabling the selection method and the specific method in the system. According to the authorities, the e-GP system helped to save 8.26% of the budget for the completed procurements."
Question 17
The report indicates that Thailand introduced an electronic government procurement system (e-GP system) in April 2010:
- When will the electronic government procurement system be fully operational? Please provide further details as to which contracting authorities (e.g. levels of government) will be obliged to use it and as to which contracting authorities will be able to use it.
- Please provide details as to how foreign suppliers will be able to participate to electronic government procurement system.
Answer
Electronic government procurement system is fully operational since August 2017. In principle, foreign suppliers can participate to electronic government procurement system by submit registration form in-person at the Comptroller General's Department in order to get user name and password. All tender documents will be sent via e-mail. The procurement notices will publish on the website.
4.5 Services
4.5.1 Financial services
4.5.1.1 Banking
4.5.1.1.1 Market structure and overview
4.5.1.1.2 Legal framework
Paragraph 4.108, Page 95
"Under current legislation, foreign ownership of commercial banks is capped at 25% of the bank's shares, and the number of foreign directors may not exceed one quarter of the total. Nevertheless,
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Question 18
Could Thailand provide information on whether it envisages further liberalisation of the financial sector concerning foreign ownership? Notably, would Thailand consider introducing objective conditions for increasing foreign ownership of banks up to 100%? If not, could Thailand clarify whether foreign operators who receive a negative reply from the BOT or the Minister of Finance in this context can appeal, and if so, under what conditions?
Answer
In terms of market access in the Thai banking sector, foreign banks can enter into the Thai market through the following three channels:
1) Acquiring shares of existing banks
2) Establishing a new foreign bank branch
3) Establishing a new subsidiary.
The current legislation as mentioned in 4.108 only applies to the case of acquiring existing local banks. As foreign ownership of local commercial banks is capped at 25% of the bank's shares, the Financial Institutions Business Act (FIBA) allows the Bank of Thailand (BOT) to relax the statutory cap on foreign ownership to 49%. However, if deemed necessary, the Minister of Finance, upon recommendation of the BOT, may authorize foreign ownership of more than 49% in a local bank. The foreign ownership limit may be relaxed only if to improve the financial performance or to strengthen the stability of any financial institutions, or the financial system.
A request to relax foreign ownership cap is considered on a case-by-case basis. Therefore, no specific criteria or conditions are set. Under the current legislation, there has been no appeals to the BOT or the Ministry of Finance regarding our decisions. In case an appeal is needed, domestic procedures may be followed as set out by the administrative court.
In light of liberalization, raising foreign ownership in local banks to 100% is not necessary as there are other forms of market access, such as through the establishment of foreign bank branches and subsidiaries, which allow foreign banks to have full ownership and control. For subsidiaries, the law permits a foreigner or a parent bank to hold at least 95% of the shares sold.
4.5.1.2 Insurance
4.5.1.2.2 Legal framework
Paragraph 4.124, Page 9
According to the paragraph, a foreign operator can obtain up to 100% of an insurer in Thailand if the former complies with several conditions.
Question 19
Could Thailand clarify what a technology transfer plan is, its requirements, and whether such a plan is compulsory for foreign investors in the insurance sector?
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Answer
Technology transfer plan which stated in the requirement are the implementation plan of using the new technology to enhance the insurance industry development or strengthening the insurance company such as improvement of operation process, transfer know-how, knowledge sharing and cost efficiency.
4.5.3 Transport
4.5.3.1 Civil aviation
Paragraph 4.162, Page 150
The paragraph mentions "policy of gradual liberalization in international air transport".
Question 20
Could Thailand provide information on the state of play of this gradual liberalisation and whether this will continue in the context of drastic activity reduction following the pandemic? Were specific measures taken during the pandemic to protect domestic airlines?
Answer
Thailand gradually opens up the market access for international air transport in the appropriate manner, taking into account the interests of all stakeholders and realizing that this approach can create a regulatory environment in which the air carriers could operate and grow in a healthy and sustainable manner. However, some specific measures were taken during the pandemic to protect domestic airlines such as several relief packages including reduction in landing and parking fees for airlines.
Paragraph 4.169, Page 151
"Foreign participation in airport operation and management is restricted […]".
Question 21
Is Thailand planning liberalisation in airport operation management in the future?
Answer
Thailand does not have any policy to change the liberalisation in the near future. However, foreigners can participate in airport operation by investing in the stock, but the total of foreign equity must not have more than 49% of all equity. Also, for the business management, foreigners can participate in the operation but there must be controlled by Thai nationals.
Paragraph 4.173, Page 151
"Civil aviation and aerospace are also featured among the target industries under the EEC plan. Accordingly, the Aerospace Industrial Estate Development Plan (2016–45) for the U-Tapao International Airport aims to develop the domestic aviation and aerospace industries, with special priority given to the further development of maintenance repair and overhaul (MRO) services; tax and non-tax incentives are granted to eligible activities."
Question 22
Can Thailand provide more information on the incentives provided to MRO services? In particular, could Thailand clarify whether they are restricted to invested operators and if they apply to both domestic and foreign operators?
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Answer
Incentives include both tax and non-tax incentives. For more detail, please visit our website at www.boi.go.th.
4.5.4 Tourism
Paragraph 4.201, Page 155
"Thailand launched an e-visa system on 15 February 2019 to facilitate foreign visitors requiring entry visas. The system was introduced to visa applicants in China, France, and the United Kingdom. The authorities noted that the Government plans to extend the e-visa service globally to all its diplomatic missions; it aims to provide an effective and convenient channel for foreign nationals to apply for visas to enter Thailand."
Question 23
Could Thailand provide more information on when the e-visa system will be extended and on how long it takes, on average, to approve entry visa applications via the e-visa system?
Answer
The e-Visa system was launched on 15 February 2019 to provide service in China, and subsequently in the UK and France in June 2019, to facilitate foreign visitors.
The plan is to gradually extend the e-Visa service to all Thai diplomatic missions abroad. On average, it takes less than three working days to process and approve an e-Visa application.
Paragraph 4.206, Page 155
"Any person who intends to operate a tourism business must obtain a Tourism Business Licence from the Department of Tourism. Foreign investment restrictions remain in place. Foreign capital participation in hotels, travel agencies, and travel operators, may not be more than 49% of a company's total equity, unless prior approval is granted."
Question 24
Could Thailand provide more information on the procedure for granting prior approval referred to in the report?
Answer
Foreign investors who want to operate in hotels, travel agency, and travel operator businesses need license permit from both under the Foreign Business Act B.E. 2542 (1999) and Tourism Business and Guide Act B.E. 2551 (2008).
In granting permission to foreigners for the operation of businesses under the Foreign Business Act B.E. 2542 (1999), the Foreign Business Commission shall consider advantageous and disadvantageous effects on national safety and security, economic and social development of the country, public order or good morals, national values in arts, culture, traditions and customs, natural resources conservation, energy, environmental preservation, consumer protection, sizes of undertakings, employment, technology transfer and research and development.
In granting permission to foreigners for the operation of businesses, the Department of Tourism has its duty to act in accordance with the Tourism Business and Guide Act, B.E. 2551 (2008) and its amendments stating that "Tourism Business" within the meaning of the Act covers only "Tour Operators and Travel Agents" that operate tourism businesses under Section 4 of the Tourism Business and Guide Act, B.E. 2551 (2008) and its amendments. In case of foreign shareholding in the hotel business or travel agents besides the tourism business in the meaning of WTO members
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QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.1 National Policies towards Structural Reform
Paragraph 3.1, Page 5
"The 20-Year National Strategy (2018-2037) has been issued since 2017. The National Strategy sets its goal as a springboard for Thailand to transform itself to be a digital economy, based on the sufficient economy principle. The strategy includes a wide range of top-down initiatives".
Question 25
Could Thailand provide information about the involvement and consultation of stakeholders in the development and implementation of the 20-year National Strategy?
Answer
National Strategy Act B.E. 2560 (2017) was drawn up and the National Strategy Committee (NSC) has been mandated to develop the draft National Strategy. The Act also specifies procedures for public participation in formulation of the National Strategy, including monitoring, inspection and evaluation, and measures for encouraging and supporting all civic sectors to comply with the National Strategy.
Abiding by the National Strategy Act B.E. 2560 (2017), the NSC has set up six National Strategy Drafting Committees, each mandated to develop a set of key strategies in line with set criteria, methodology and requirements. The NSC also conducted public hearing meetings, as required by the law, to encourage relevant government agencies and the public to share their opinions, which were incorporated into the drafting of the National Strategy. Public hearing was conducted throughout the country in four regions, with participants from all walks of life whose comments and feedbacks were taken into account of the drafting of the National Strategy.
3.1.2.3 Regulatory guillotine
Paragraph 3.21, Page 8
"To enhance Thailand's competitiveness and improve Thailand's ease of doing business, since 2016 the Government has initiated the project called "Regulatory Guillotine" by hiring Thailand Development Research Institute (TDRI) to review Thailand's existing laws, rules, and regulations to ensure efficiency, as many laws have become redundant, obsolete, or incompatible with current situations. The first stage of the project is "Licensing Guillotine", focusing on streamlining the complex licensing and permits issuing processes and regulatory procedures to facilitate people and businesses".
Question 26
Could Thailand provide more information on the state of play of the first stage of the Regulatory guillotine and an overview of the content and timeline planned for the subsequent stages?
Answer
The Government has given approval to the revised National Reform Plan wherein the “Regulatory Guillotine” project has been highlighted as one of the key reform areas to be achieved by the year 2022, with the Strategic Transformation Office (STO) and Office of Public Sector Development Commission (OPDC) as the main steering agencies. At this stage, Thailand Development Research Institute (TDRI), which had been commissioned by the Government, has submitted findings to STO,
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3.1.3 BCG economy
Paragraph 3.23, Page 9
"The Government has introduced the concept of "Circular economy" [...] the Government has exerted much effort to restructure the industry's production pattern from linear to a new circulating pattern that employs cost-effective, waste management and raw materials recycling concepts [...] The government encourages the use of raw materials that have already passed production and consumption into the new production process. At the same time, the Government tries to promote the processing of waste and used goods back into industrial raw materials and to set the standards for secondary use of raw materials".
Question 27
Could Thailand provide information on the approach deployed to promote the use of used goods as inputs in new production processes? Are specific incentives foreseen in particular for remanufactured and refurbished goods?
Answer
Promoting the use of used products as raw materials for re-entering the production process is one of the Thai industrial development approach based on the circular economy concept. The Ministry of Industry has set the vision of this development approach as "Maximize Economic Value + Minimize Social & Environmental Impact". The Ministry of Industry has formulated three main guidelines to promote circular economy as the following:
1) Increasing production efficiency and environmentally friendly production by reduction resources consumptions/optimizing resources usages as well as adjusting the production process to be environmentally friendly one.
2) Adding industrial value and creating new products from waste or waste materials (Upcycling) by supporting the use of waste or waste materials, especially materials that are available in the country into resources to create innovative products with high added value.
3) Promotion of business model adjustment by encouraging entrepreneurs to adjust their business model to create a new business or Circular Startup business model such as circular design, product as a service, and sharing platform.
In order to promote the use of used goods as input, the Ministry has developed ecosystems to facilitate the implementation of the above 3 guidelines, such as the introduction of a standard for the circular economy entitled the Thai Conformity Assessment Standard No. 2-2562: the Framework for Implementing the Principles of the Circular Economy in Organizations by the Thai Industrial Standards Institute (TISI) and the establishment of the recycle technology research and development center by Department of Primary Industries and Mines.
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3.2 Sectoral Policies
3.2.1 Tariffs and customs procedures
3.2.1.1 National Single Window & ASEAN Single Window
Paragraph 3.27, Page 10
"The way forward to enhance the business activities using NSW was recently defined, for example, completely simplify and standardize the process for import/export of strategic goods (sugar, rice, rubber, frozen product, and hazardous substance), cooperate and develop the integration of port and logistics communities via NSW, and expand the single submission system for the import/export permission of agricultural products.
ASEAN's efforts to promote trade facilitation in the region continued to intensify towards achieving the regional goals of reducing the trade transaction costs by 10% by 2020 and doubling intra-ASEAN trade between 2017 and 2025. One such measure is the ASEAN Single Window, which is an electronic mechanism for exchanging trade-related documents".
Question 28
Could Thailand provide information on the state of play concerning the linking electronic import/export certification systems of the key authorities responsible for agricultural products to the NSW and on the timeline to complete this process? Are there plans to also: (i) link the NSW with the export/import certification system of third countries in order to facilitate trade, (ii) translate ASW certification-related procedures into domestic legislation?
Answer
Yes, Thai NSW has been developing and implementing the exchange of information for the agricultural products, such as the single-entry application for the issuance of electronic Sanitary and Phytosanitary certificates and the permits for the import/export of the industrial drop. The project is being carried on and expected to be implemented by 2021.
Are there plans to also: (i) link the NSW with the export/import certification system of third countries in order to facilitate trade, (ii) translate ASW certification-related procedures into domestic legislation?
(i) Under the ASEAN Single Window work plan, the NSW of ASEAN member countries would be one of the systems to exchange the information with the third countries. Currently, there is a project for the exchange of e-C/O with some Asian countries and it is in the process of the proposal and roadmap deliberation. In addition to the bilateral cooperation for the data linkage via Thai NSW with the individual third country, Thailand welcomes for the further discussion on both technical and legal matters.
(ii) The ASW certification-related procedures have been enabled by the Protocol on the Legal Framework as ASEAN has ratified and each ASEAN member country should review and revise the relevant domestic regulations to be aligned with the Protocol. Therefore, the domestic legislation in Thailand is already supported the procedures presently used in the ASW environment.
3.2.2 Agriculture
Paragraph 3.35, Page 12
Strengthening the Farmers and Agricultural Institutions of the 5-year agricultural plan (2018-2022) aims at "enhanc[ing] farmers to be proud and feel secure in their careers".
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Question 29
Could Thailand provide more information on ongoing/planned measures to ensure safe and decent working conditions in the agricultural sector?
Answer
Ministry of Agriculture and Cooperatives encourages farmers to follow GAP standard and use best- practice agriculture by:
1) Reduce unnecessary use of chemicals
2) Use chemicals in the smart way
3) Implement GAP standard
4) Use innovative and new technologies
5) Use precision farming and smart agriculture.
These practices will create safe products and safe agriculture to serve consumer safely and finally create pride in the career of farmers.
Paragraph 3.37, Page 13
The report states that the Government focuses on "improving the quality of life and well-being conditions of fishermen and farmers".
Question 30
Could Thailand provide more information on ongoing/planned measures to achieve this objective?
Answer
Marine fisheries:
Thailand has robust fisheries law against IUU fishing and stringent penalties for offenders. The granting numbers of fishing license use the Maximum Sustainable Yield (MSY) in the calculation so there is no overfishing according to the sustainable management of aquatic animal resources. In addition, there is a traceability system that applies to both domestic and imported aquatic animals in order to assure that fishes caught in the supply chain do not come from illegal fishing and overfishing sources.
Aquatic animals from aquaculture:
Thai aquaculture has a traceability system to trace back from consumers, exporters, farmers to aquatic animal broodstock suppliers. Products obtained from aquaculture farms was set a standard and environmentally friendly. The residues control applies in accordance with internationally accepted standards.
3.2.4 Industry
Paragraph 3.41, Page 14
The paragraph refers to "restructuring and strengthening competitiveness of primary industries (…), include[ing] energy (…)".
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Question 31
Could Thailand give further detail on how and which part of the energy sector will be restructured? Which type of competitiveness are the authorities aiming for?
Answer
Thailand supports domestic production of BEV which sets the target of 250,000 BEV in 2030 and also supports domestic production of Battery Energy Storage. The promotion package of BOI covers a comprehensive range of electrical vehicles, namely passenger cars, buses, trucks, motorcycles, tricycles, and ships. Additionally, to promote local EV battery production, the Board of Investment (BOI) also approved additional incentives for the production of both battery modules and battery cells for local market by granting a 90% reduction of import duties for two years on raw or essential materials not available locally.
3.2.8 Government procurement
Paragraph 3.90, Page 22
"In 2017 Public Procurement and Supplies Administration Act has been enacted in Thailand. The main objective of this Act is to promote transparency, accountability, efficiency, effectiveness, and value of money which lead to reliability in Thai public procurement for all sectors in both national and international level. According to the Act, all government agencies must follow the procurement procedures, including State-owned Enterprises (SOEs), local administrations, and other Independent public organizations except the procurement by SOEs that directly involving commerce such as purchasing oil and gas of Petroleum Authority of Thailand."
Question 32
Could Thailand clarify: (i) the definition of the "procurement by SOEs that directly involving commerce" that are exempted from the Act? (ii) which procedural guarantees against decisions of procuring authorities are available to bidders?
Answer
"Procurement by SOEs that directly involving commerce" means the State Owned Enterprises that are listed companies or doing business that compete with private sectors such as PTT Public Company Limited. Under Public Procurement and Supplies Administration Act (2017), Section 8 indicate that procurement and supplies administration by a State agency must generate optimal benefits to the State agency and must conform with the value for money principle, the transparency principle, the efficiency and effectiveness principle, and accountability principle.
3.3.7 ASEAN Capital Markets Forum
Paragraph 3.129, Page 28
We note that 5 ASEAN Sustainability Bonds, including one Social Sustainability Bond, have been issued in Thailand.
Question 33
Could Thailand provide more information on measures to promote these bonds among companies in Thailand (e.g. positive incentives and communication)?
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Answer
Products
- We realised that green bonds, social bonds, and sustainability bonds are important financing instruments that can mobilise massive capital flows to sustainable development projects
- So, we have been actively promoting this sector by engaging with potential issuers, and underwriters through organising bootcamps and workshops to create technical know-how. Also, in order to enhance the growth of the sustainable bond market, SEC has waived the approval and filing fee from 2019 until May 2021. In addition, SEC have been coordinated with international organisations such as the Asian Development Bank (ADB) and the UK prosperit fund for technical assistance and support for the cost of the external review.
- The issuance of these Green, Social, and Sustainability bonds from Thai issues have been growing rapidly. The total issuance value has grown to almost USD 3 billion, including our first sovereign issuance this year.
- Last year, the SEC have organised a high-level meeting to promote the bond issuance with the government agencies to leverage capital market for the public work.
- In August this year, we finally have witnessed the first government's sustainability bonds, which is also the first of its kind in ASEAN. The USD 1 billion proceeds will be used for the mass transit project and COVID-19 relief package for those affected. The deal was highly successful with exceptionally strong demand from the investors with 3.05 times oversubscription.
- In addition, there are also issuances from a state-owned enterprise of USD 500 million, of which USD 188 million worth of green bond from Bank for Agriculture Cooperatives and USD 212 million worth social bonds from National Housing Authority.
Investors and information center
- Investor is a key driver to voice and use their voting power. The investment Governance Code (I Code) was launched in 2017 as investment governance principles and guidance for responsible and effective stewardship investments. We will continue communicating and working towards higher commitment from institutional investors and the asset owners. Another initiative will be to encourage the listed companies to take ESG-related factor in choosing their provident fund manager.
- In addition, we have recently developed a bulletin platform, in cooperation with ThaiBMA, which would be a center for providing information on sustainable financing debt securities to promote the visibility for them.
External review
- As some issuers raised their need for local reviewer to reduce cost or facilitate the working process. We have been cooperating with ADB to support technical assistance for the potential local reviewers. Recently, TRIS, the local credit rating agency has just been approved as the verifier under the CBI standard.
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HONG KONG, CHINA
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
TRADE POLICIES BY SECTOR
Banking services
Pages 137 and 139, paras 4.100 and 4.107
It is a mandate for state-owned Specialized Financial Institutions (SFIs) to provide financing to those who are not adequately served by commercial banks, such as low-income households and specific economic sectors (e.g. agriculture, small businesses, and housing). As noted in the Secretariat Report, SFIs are not subject to the same supervision regime and disclosure obligations as commercial banks.
Question 1
Is there any timetable or plan to carry out the recommendation of International Monetary Fund (IMF) in 2019 to align the regimes of the largest deposit-taking SFIs with that of commercial banks? What would be the major challenges in implementing the recommendation?
Answer
The BOT has been implementing regulation and supervision framework for SFIs that are in line with those of commercial banks. The details are as follow:
Regulations:
- The BOT works closely with Ministry of Finance to develop regulations for SFIs that align with those of commercial banks and, at the same time, suit specific mandate of each SFIs. The regulations were designed to be issued in stages according to their priorities and necessities. This allows BOT and MOF to monitor the impact of regulations as well as economic situation and be able to schedule regulations issuance appropriately.
- Upon approvals from Ministry of Finance, in 2019 - 2020, the BOT has issued rules and guidelines aiming for stability and prudence, which include standards on governance, capital requirement, liquidity reserve requirement, credit process, single lending limit, accounting, branches service, outsourcing, KYC, IT risk management, mortgage loan, and market conduct.
- To enhance SFIs' risk management further, the BOT is in the process of issuing rules and guidelines on reverse mortgage, digital channel, operational risk management, compliance and internal audit function, and business continuity plan and management.
Examination:
- SFI examination follows the same guideline as commercial banks. The BOT focuses on financial institutions supervision according to each financial institution's level of significance to the overall system, together with its inherent risks. For any transactions that the BOT has not issued specific regulations for, reference is made to regulations for commercial banks.
- SFI examination processes are the same as commercial banks. Furthermore, the BOT conducts ongoing supervisory framework and adapts data analytic for off-site monitoring and assessing risk to SFIs.
However, the wide-ranging mandates result in varying strategies and business models of SFIs. Thus, the regulatory principles have been added more flexibility by taking into account differences of SFIs from commercial banks in four aspects: (1) Deposit taking and systemic importance (2) Risks
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Page 140, Paragraph 4.113
Individual and juridical depositors in local currency (except non-resident baht accounts) are protected under the Deposit Protection Agency Act B.E. 2551 (2008) in case a financial institution goes bankrupt. From 11 August 2019 Thai baht deposits are protected under the Act up to a maximum of 5 million baht per one depositor per financial institution until 10 August 2021. It will be reduced to THB 1 million afterwards.
Question 2
What are the reasons for lowering the protection coverage level in 2021? Have stakeholders been consulted before implementation?
Answer
The coverage limit for deposit protection scheme has been set based upon the Core Principles for Effective Deposit Insurance System (amended in 2014), and as such specified in the Deposit Protection Agency Act B.E. 2551 (2008). The lowering of the coverage limit from 5 million baht per one depositor per financial institution to 1 million baht was previously scheduled to begin in 2020. However, taking into consideration the COVID-19 pandemic in 2020 in combination with related research and public hearings with stakeholders, including depositors and the banking sector, the government has enacted the Royal Decree Prescribing the Amount of Protected Deposits B.E. 2563 (2020) in order to enhance the security and stability for financial and financial institution system and regain public confidence by temporarily extending the coverage limit up to 5 million baht for another year. As a result, the lowering of the protection coverage level to one million baht will begin in 2021, in compliance with section 53 of the Deposit Protection Agency Act B.E. 2551 (2008).
It should be noted that the reduction in deposit protection limit to 1 million baht will not affect the great majority of the public, because such protection limit covers more than 98.72% of the total number of accounts (as of 10 November 2020).
Telecommunications services
Page 148, paragraph 4.152
In order to embrace the country's transition towards a digital economy, in 2019, Thailand passed several new laws and amended existing ones to foster a supportive environment. The Cybersecurity Act established new authorities responsible for cracking down on cybercrimes and protecting the national critical information infrastructure; the Personal Data Protection Act provides rules and mechanisms for personal data protection. In addition, the Electronic Transaction Act was amended twice to respond to the latest technology developments.
Question 3
Have these new or amended laws already entered into force? Are there any other legislative proposals in the pipeline aiming to support Thailand's transformation to a digital economy?
Answer
Laws that are already in force:
- Re-organization of Ministry, Bureau and Department Act, B.E. 2559 (2016) - Establishing Ministry of Digital Economy and Society
- Digital Economy and Society Development Act B.E. 2560 (2017)
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- Computer Crime Act (Amendment) B.E. 2560 (2017)
- Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Service (Amendment) B.E. 2560 (2017) and B.E. 2562 (2019)
- Electronic Transactions Development Agency Act B.E 2562 (2019)
- Electronic Transactions Act (Amendment) B.E. 2562 (2019)
- National Council for Digital Economy and Society Act B.E.2562 (2019)
- Cybersecurity Act B.E. 2562 (2019)
- Personal Data Protection Act B.E. 2562 (2019)
- Electronic Transactions Act (4th version) Digital ID B.E. 2562 (2019).
For the next step, Thailand plans to issue the Subordinate Legislation under the Cybersecurity Act and Personal Data Protection Act.
Question 4
What changes have been made in the two amendments to the Electronic Transaction Act?
Answer
Amendment No. 3 and No. 4 adopted selected principles from the UNCITRAL e-Communications Convention, reinforced the law enforcement, adjusted the rules on the supervision of electronic transaction businesses, amended the components and authorities of the Electronic Transactions Commission (ETC) and empowered the Electronic Transactions Development Agency the ETC Secretariat.
Tourism services
Page 156, Paragraph 4.206
Foreign investment restrictions remain in place for hotels, travel agencies, and travel operators. Foreign capital participation may not be more than 49% of a company's total equity, unless prior approval is granted.
Question 5
What criteria will be considered in granting prior approval for investment involving foreign capital participation of more than 49% in these industries?
Answer
In term of Tour Operators and Travel Agents, there is no exception or granting for foreign capital participation more than 49% of a company's total equity. It is recommended to ask for further information from the responsible organization, the Foreign Business Act, B.E. 2542 (1999).
Page 156, Paragraph 4.207
Incentives are provided to a number of economic activities in the tourism sector, such as hotels, convention halls, tour boating, cruise terminals, amusement parks, Thai cultural centres, and Thai art and craft centres.
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Question 6
What kind of incentives are provided? Are foreign companies eligible to apply?
Answer
Thailand Board of Investment provide both tax and non-tax incentives for promoted juristic persons. An example of tax incentive is the exemption from payment of corporate income tax for a certain period. An example of non-tax incentives is permission to bring foreign skilled workers and experts into Thailand to work in promoted projects. Non-tax incentives aim at facilitating investors' operation in their promoted projects. Incentives provided to local and foreign investors are the same, based on eligible activities. For more details, please visit our website at www.boi.go.th and https://www.boi.go.th/upload/section7_en_wt_link.pdf.
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INDIA
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
Page 6, Paragraph 3.4
Question 1
India requests Thailand to explain what measures does one of its key development policies i.e "Thailand 4.0" seeks to adopt so as to integrate digital technologies into public administration to improve its quality and efficiently deliver public services?
Answer
A Thailand digital government development plan 2017 - 2021 was made to (1) Enhance the universal indicators relating to digital government, (2) Improve public services especially being paperless, (3) Increase transparency and accountability, and (4) Cooperate seamlessly between government organisations to be more efficient and provide better services for people.
The expected outcomes of Thailand 4.0 policy are as follows:
1) Economic Prosperity: to create a value-based economy that is driven by innovation, technology and creativity. The model aims to increase Research and Development (R&D) expenditure to 4% of GDP, increase economic growth rate to full capacity rate of 5-6% within five years, and increase national income per capita from 5,470 USD in 2014 to 15,000 USD by 2032.
2) Social Well-being: to create a society that moves forward without leaving anyone behind (inclusive society) through realization of the full potential of all members of society. The goals are to reduce social disparity from 0.465 in 2013 to 0.36 in 2032, completely transform to social welfare system within 20 years and develop at least 20,000 households into "Smart Farmers" within five years.
3) Raising Human Values: to transform Thais into "Competent human beings in the 21sth Century" and "Thais 4.0 in the first world. Measures under Thailand 4.0 will raise Thailand HDI from 0.722 to 0.8 or the top 50 countries within 10 years, ensure that at least five Thai universities are ranked amongst the world's top 100 higher education institution within 20 years.
4) Environmental Protection: to become a livable society that possesses an economic system capable of adjusting to climate change and low carbon society. The targets are to develop at least 10 cities into the world's most livable cities and reduce terrorism risk.
The example of integration digital technologies into industrial sector to improve its quality and efficiency such as establishment of the Industry Transformation Center (ITC) through cooperation of three ministries, including, Ministry of Industry (MOI), Ministry of Higher Education, Science, Research and Innovation (MHESI) and Ministry of Digital Economy and Society (MDES). The purpose of this programme is to be integrated service center that aims to develop products, processes, and people of Thai industries by connecting private manufactures and SMEs with innovation and research and creating opportunities, especially sharing knowledge on product development, business management, and innovation.
Page 15, Paragraph 3.44
3.2.5.1 Civil aviation
3.44. In this regard, the Ministry of Transport and the Civil Aviation Authority of Thailand (CAAT) jointly resolved the 33 findings by amending Thailand Air Navigation Act and enhancing CAAT officers' competence to gain trust and credibility from global civil aviation community. A new air
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Question 2
With reference to the above para, Thailand is requested to elucidate its new scheme and explain the certification process mentioned therein.
Answer
The Civil Aviation Authority of Thailand (CAAT), established as an autonomous government agency, started the process of regulatory reform of the safety oversight system through the amendments of the primary regulation, the introduction of more ICAO standard regulations, recruitment of new qualified technical staff, provision of appropriate training to enhance and maintain their competency, the establishment of technical guidance, manuals and tools both for own technical personnel and for the operators.
A new air operator certification system was introduced and all international air operators were required to recertify under section 37 of the Civil Aviation Emergency Decree B.E. 2558 for issuing regulations, requirements, notifications, rules and orders to stipulate qualifications, rules, procedures, conditions, standards and practical guidance for the following matters to ensure conformity with current and timely International Standards.
The regulations of Thailand to hold an Air Operator Certificate (AOC) are required by:
- Regulation on Civil Aviation Board No. 85 on The Air Operator Certificate
- Regulation on Civil Aviation Board No. 86 on Operation of Aircraft
- Air Operator Certificate Requirements (AOCR)
- Helicopter Operations Requirements (Additional Requirement for Helicopter).
Air Operator Certification Process: A 5-phase process for systematic handling of all AOC applications has been adopted. The five phases are explained briefly as follows:
Phase 1: Pre-Application Phase
- A preliminary discussion is held whereby basic information and general certification requirements are discussed, and an application form is provided when the applicant desires to continue with the AOC application.
- The applicant will be provided with an overview of the certification process and made aware of the various department responsible for financial, economic and legal matters, and for the assessment of your financial resources and ability to support the proposed operations.
- If the phase meeting is satisfactory and both parties are in agreement that the application may proceed, the applicant will be asked to submit a formal application.
- The applicant will then be provided with an AOC Application package that includes the following documents:
a) A draft schedule of events in the Application certification process
b) The Operations Manual Checklist
c) An AOC Approvals Document template
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d) The Aircraft Equipment checklist template
e) Template OPS form 4, to be completed for each nominated post holder.
Phase 2: Formal Application Phase
- This phase begins when the applicant submits the completed application letter with attachments containing the information required by the CAAT comprising a formal application package.
- The application letter shall be signed by the applicant's Accountable Executive and shall contain at least the following information:
a) a statement that application serves as a formal application for an AOC
b) the name and address of the applicant
c) the location and address of the applicant's principal place of business and the main base of operations
d) a description of the applicant's business organization and corporate structure, name, and addresses of those entities and individuals having a major financial interest
e) the name and address of the applicant's legal representative
f) the identity of key management personal – Refer to AOCR, Chapter 1
g) the nature of the proposed operations
h) the desired date for the operation to commence.
The attachments that need to accompany the formal application letter are:
a) the identification of the operation specifications sought with information on how associated conditions will be met
b) the schedule of events in the certification process with appropriate events addressed and target dates
c) an initial statement of compliance or detailed description of how the applicant intends to show compliance with each provision of the air navigation regulations; – Statement of Compliance to the AOC Requirement
d) the management structure and key staff members including, functional tasks, lines of reporting-authority-accountabilities, titles, names, backgrounds, qualifications, and experience, with regulatory requirements satisfied
e) the details of the SMS framework
f) a list of designated destination and alternate aerodromes for scheduled services, areas of operation for non-scheduled services and bases for operations, as appropriate to the intended operations
g) a list of aircraft to be operated
h) documents of purchase, leases, contracts or letters of intent
i) arrangements for crew and ground personnel training and qualification, facilities and equipment required and available
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j) the operations manual, properly structure on Parts A, B, C and D
k) the General Maintenance Manual (GMM)
l) detail of the method of control and supervision of operations to be used
m) Complete Forms 107, 108, 109; and
n) The detail of the Quality Management System.
Phase 3: Document Evaluation Phase
A thorough evaluation of all the manuals, documents, and attachments etc. This is to ensure that all documentation meets the required standards and requirements. All manuals and documents submitted will also be retrained by the Authority during the currency of an AOC.
Phase 4: Demonstration and Evaluation Phase
The applicant demonstrates to CAAT an ability to comply with regulations and safe operating practices to ensure that the applicant has an adequate organisation, the method of control and supervision of flight operations, training programme, ground handling, and maintenance through proving flights for evaluation by CAAT.
Phase 5: Certification Phase
After all, documentation has been assessed to be complete, the AOC will be issued with the corresponding operations specifications to enable the applicant to commence revenue operations.
Page 19, Paragraph 3.68
Question 3
Can Thailand throw some light on some of the key measures it has taken to improve tourism and accomplish the objective of its Second National Tourism Development Plan B.E. 2560-2564 (2017-2021)?
Answer
Thailand has not revised the Second National Tourism Development Plan as the plan was initiated before the pandemic and now nearing its validity. Nevertheless, Thailand has taken measures to cope with the situation of the COVID-19 pandemic.
Page 20, Paragraph 3.80
Question 4
India requests Thailand to provide an insight on some of the key step/measures it has taken for inclusion of local communities into its IP system and how it has promoted GI among local farmers.
Answer
The Department of Intellectual Property has been promoting GI among local farmers in a number of ways. For example, we have our officials visit provinces in all regions of the country to educate local farmers and entrepreneurs about the importance of GI and to give advice on GI registration and quality control system.
In terms of marketing, we have also been assisting GI producers in developing their products and packaging in order to increase the value of their GI products, as well as helping to create market opportunities for GI products by seeking cooperation from modern trade operators in distributing GI products and organizing the "GI Market" events regularly.
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Page 22, Paragraph 3.92
3.2.9 Competition
3.92. The Trade Competition Act B.E. 2560 (2017) is Thailand's current law which governs competition policy framework. Repealing the Trade Competition Act B.E. 2542 (1999), the present law has been in force since 5 October 2017. The Act regulates anti-competitive conducts such as abuse of market dominant position, mergers and acquisitions, cartels (vertically and horizontally) and unfair trade practices.
Question 5
With reference to above paragraph India would like to know is there any provision to address the issue of "Collective Dominance" under Thailand's Competition Laws?
Answer
No, the provisions in relation to collective dominant are irrelevant to the government tax revenue.
Page 9, Paragraph 3.24
Question 6
With reference to Para 3.24 (1) (page 9), "And other measure is to financially support Green Projects in which the Bank for Agriculture and Agricultural Cooperatives provides low interest rate loans to approved agricultural entrepreneurs or agricultural related businesses which are in search of financial support for this environmentally friendly project.", India would like to know the products being dealt by entrepreneurs and businesses having received such benefits under the programme. In addition to this, kindly elaborate on the targeted industries entitled/aimed for incentivization.
Answer
The green credit is the project which promotes and supports BAAC customers to run environmentally friendly businesses. The four types of projects/products that can apply for green credit are:
1) Organic or safe food production; especially the certified standards or food safety practices such as International Federation of Organic Agriculture Movements - IFOAM, Organic Thailand, USDA ORGANIC, Good Agricultural Practice; GAP, Good Hygiene Practice; GHP, Good Manufacturing Practice; GMP, Hazard Analysis Critical Control Point; HACCP, Participatory Guarantee System ; PGS) etc., or any products which received certifications about food safety from govermental agencies.
2) Alternative energy Or renewable energy Or clean energy uses such as Biogas system for both household use or livestock farms, Biomass power generation systems for the community, Solar energy or any changing to use alternative energy Or renewable energy or clean energy, etc.
3) Conservation of natural resources and the environment, such as the Wastewater treatment system modification, Waste management, Environment agricultural production or Project according to the sufficiency economy concept.
4) Arts, culture or community way promotion such as Producing, Processing, Distributing agricultural products from local wisdom, Agricultural Community Tourism Promotion or ecological community tourism, etc.
In the case that the customer is certified to the standards or guidelines related to each type of loan objectives according to the above projects. The bank will adjust interest rates at the rate of MRR-1 (for farmers or individuals) or MLR-0.50 (for group or corporate customers). Thus, the target industries that are eligible for green credit will be covered throughout the agricultural value chain financing and also include in the management of industrial pollution and ecotourism.
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Page 11, Paragraph 3.2.2
Question 7
With regards to Section 3.2.2 (Page 11)- Agriculture, Para 3.34, line –"During 2015-19, the agricultural GDP increased from USD 19.73 billion in 2015 to USD 7.56 billion in 2019, with an average growth rate of 2.3% per year. In 2015-16, agricultural GDP declined continuously due to severe natural disasters, especially, the drought that had occurred since 2014.", kindly review the highlighted text and provide correct statement.
Answer
WTO has already corrected the number to USD 27.56 billion.
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Page 9, Paragraph 9
Question 8
Can Thailand please elucidate the steps that has been taken to liberalize FDI in infrastructure development and also what are those certain services industries where it seeks to liberalize FDI?
Answer
On 11 March 2019, Thailand has established a new PPP Act, the Public Private Partnership Act B.E. 2562 (2019) (the PPP Act 2019) (replaced the former PPP Act, the Public Investment in State Undertakings Act B.E. 2556 (2013) (the PISU Act 2013). Section 12 of the PPP Act 2019 stipulates that the Public-Private Partnership Project Delivery Plan (the PPP Delivery Plan) shall be prepared in a manner consistent with the Master Plans on the Infrastructure and Social Development under the National Strategy 2018 - 2037 (the Master Plan) as prepared by the Office of the National Economic and Social Development Council. Undertakings under this Act shall also be carried out for the purpose of achieving goals of PPP, including the consistency with the PPP Delivery Plan. The PPP Delivery Plan 2020-2027 is published on the SEPO's website at http://www.ppp.sepo.go.th/tinymce/plugins/filemanager/thumbs//PPP%20Delivery%20Plan%202 020-2027_Mar2020%20(EN).pdf.
The PPP Delivery Plan is a long-term plan, which contains 92 PPP projects. The PPP projects are categorized based on the priority and urgent need of PPP Projects under the Plan into three groups, which are (1) High Priority, (2) Normal, and (3) Initiative. The prioritization will help monitor and follow up PPP projects to be proposed to the PPP Committee according to the Plan. In addition, the line ministry shall also report a summary of implementation, progress, and problems and obstacles with regard to projects under the Plan to the PPP Committee at twice a year for the PPP Committee's further consideration.
Page 11, Paragraph 20
Question 9
What are the conditions and is there any specific time period for taking agricultural lands on lease by the foreigners?
Answer
Under the provision of Section 19 (7) of the Agricultural Land Reform Act. B.E. 2518 (1975), the Agricultural Land Reform Executive Committee Regulation, in respect of rules, procedures and conditions upon selecting eligible farmers entitled to land allocation from agricultural land reform B.E. 2535 (1992), provided in clause 6 (1) that farmers, who are eligible to apply for land utilization in land reform area, must have a Thai nationality. Hence, foreigners cannot apply for land lease in land reform area.
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Page 12, Paragraph 1.2
ECONOMIC ENVIRONMENT
Question 10
Could you elaborate on the different measures/initiatives in order to maintain financial stability in the economy?
Answer
To maintain financial stability in the economy the Ministry of Finance and the Bank of Thailand (BOT) have worked closely together to swiftly implement measures to alleviate the impact of the COVID-19 outbreak on households and businesses. However, the intensified and longer-than-anticipated outbreak necessitates additional relief measures to support small and medium-sized enterprises (SMEs), which are the backbone of the Thai economy and a primary source of employment. It is also necessary to have measures to stabilize the corporate bond market to ensure the normal functioning of the market as the financing source for the private sector and to safeguard the economy and financial stability as a whole.
The package consists of four important measures:
1) A loan payment holiday of six months for all SMEs with a credit line not exceeding 100 million baht
2) Soft loans to support liquidity for SMEs with a credit line not exceeding 500 million baht, with a concessional interest rate of 2% per annum and interest-free for the first six months.
3) In order to stabilize the corporate bond market by providing liquidity backstop to ensure its continued functioning, the BOT and the Ministry of Finance establish the Corporate Bond Stabilization Fund (BSF) to provide bridge financing to high-quality firms with bonds maturing during 2020-2021, at higher-than-market 'penalty' rates.
4) Reducing the FIDF fee will ease the loan interest burden of businesses and households. BOT will halve the rate of contribution from financial institutions to the FIDF from 0.46% of deposit base to 0.23% per annum for a period of two years. This is intended for financial institutions to immediately pass on such cost savings to businesses and households by further reducing their loan rates.
Additionally, in safeguarding Thailand's financial stability, the BOT collaborates with relevant supervisory authorities, such as the SEC, the OIC and the FPO, to assess risks and coordinate policies. Areas of financial risk build-up are identified through sectoral surveillance and risk assessments by relevant departments and authorities. Key issues identified as well as policy recommendations are then discussed at cross-organizational forums, both at the working level (the Financial Stability Working Group containing representatives of the key financial regulators) and policy level (the Joint Meeting of the Monetary Policy Committee (MPC) and the Financial Institutions Policy Committee (FIPC) which discuss and decide on cross-cutting financial stability issues and potential policy responses).
As a result of the financial system surveillance framework described above, several macro prudential measures have been introduced to prevent pockets of vulnerabilities from escalating into systemic risks. For example:
• To address the issue of household over-indebtedness, debt-to-income limits on credit card and personal loans from commercial banks were imposed in 2017 to prevent excessive debt creation, especially for lower-income borrowers. The BOT has also worked closely with financial institutions to improve credit underwriting standards and assessment of borrowers' debt serviceability as well as affordability. In this regard, the BOT, in collaboration with financial institutions (FIs), has developed standard DSTI definition and
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started gathering DSTI data from FIs to monitor the risk of household over-indebtedness. Banks have submitted monthly granular data to the BOT since Oct. 2019.
• To curb excessive speculation in the real estate market, the BOT has revised the loan-to-value (LTV) measure on mortgage loans in 2019 to impose a more stringent LTV limit for second and subsequent mortgage contracts and for housing units with value exceeding 10 million baht.
• To alleviate the impact of the COVID-19 pandemic, the BOT has also implemented a series of measures to address problems faced by affected businesses and households, as well as to maintain stability of the financial market.
At the peak of the pandemic, measures have been implemented in a broad-based manner as all sectors were significantly affected by the lockdown. Key financial relief measures for businesses and households include debt payment holiday, soft loans to support liquidity for SMEs and debt restructuring schemes. On the financial market side, preventive measures have also been implemented to stabilize financial markets, including the establishment of the Mutual Fund Liquidity Facility (MFLF) and the Corporate Bond Stabilization Fund (BSF; a backstop facility for corporate bond rollover) to boost investors' confidence and restore effective market functioning.
After lockdown restrictions were eased, businesses have resumed their operations and employment. Policy focus has now shifted from dealing with broad-based liquidity pressures to supporting a sustainable recovery in a targeted manner. While relief measures continue to be maintained to support recovery, additional liquidity support will be targeted to illiquid but solvent firms. At the same time, measures to support the stability of financial markets will be adjusted as appropriate to ensure that the markets continue to function smoothly.
Page 13, Paragraph 1.5
Question 11
What steps will the government take to improve its participation in global value chains which was affected due to global effective downturn, trade wars and current pandemic situation?
Answer
COVID-19 pandemic causes supply and demand shocks and disrupts economies across the world. Although Thailand has efficiently controlled the spread, the pandemic has caused an inevitable impact to the economy, society, and people's quality of life. Consequently, the Thai government has activated emergency procedures and policy responses that help Thailand to recover from the crisis. The government has approved THB 1.9 trillion fiscal stimulus package, which focuses on economy restructuring to enhance the country's competitiveness in the long run.
Thailand has planned to invest in the markets that it has a potential to expand in a new normal scenario, especially in technology and innovation that adds high value to the new s-curve industries including robotics and automation, aviation and logistics, bio-fuels and bio-chemicals, digital, integrated medical service, future automotive, smart devices, quality tourism and health tourism, agriculture and bio-technology, and food processing. Moreover, the government has invested to improve logistics and transportation system, and infrastructure, such as Laem Chabang port, U-Tapao International Airport, and a high-speed rail linked to the airport, to attract foreign investors.
A prominent barrier to foreign investors and human resources are rules and regulations. To facilitate inbound foreign investors, executives, experts, and startups, the Law Reform Commission of Thailand has launched the SMART Visa and revised the relevant rules and regulations that impede business operations. The government also focuses on upskilling the country's workforce, promoting research and development, and enhancing the digital transformation.
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Page 14, Paragraph 1.7
Question 12
Does Thailand has any specific plans to revive its tourism sector which is affected due to COVID-19?
Answer
Thailand does not have a specific plan to revive the tourism sector yet, but there are measures to cope with the COVID-19 pandemic, such as measures to support tourism sector and stimulus measures to boost domestic travel.
Pages 16-17, Paragraph 1.12
Question 13
Are there any future actions plans to increase SME's participation in Thailand exports?
Answer
According to the 4th SME Master Plan, one of the key performance indicators and goals of the third strategy (promoting market access and internationalization) is that SMEs are capable to compete in the international market. The action plans are as followings:
- Support in-depth oversea markets information by developing a "market intelligence", which includes trade opportunity, investment, consumer behaviours, trade statistics, law and regulations, buyer lists etc. and SMEs can easily access such information online.
- Support potential SMEs to compete in the international market. Provide business opportunities for SMEs in the international trade, subsidize SMEs to international markets, develop electronic market for international markets, promote standardizing products and support innovative SMEs to the international market.
- Foster new exporters: organize trainings/seminars and online learning on how to do business oversea as well as provide consulting.
- Facilitate SMEs who are interested in foreign direct investment by establishing "One Stop Service" and "SME estates" in oversea markets to assist SMEs.
Page 20, Paragraph 1.20
Question 14
What are those countries which gets visa waivers for tourists under the Thai Stimulus Package?
Answer
The Thailand Special Tourist Visa (STV) is a special visa introduced by the Tourism Authority of Thailand for long-stay tourists who would like to travel to Thailand. It is one of the economic measures by the Thai government to restore the local tourism industry that has been affected heavily by the COVID-19 pandemic.
Thailand Special Tourist Visa Qualifications
Foreigners applying for a Special Tourist Visa must be:
- Foreigner from a low-risk country according to the Public Health Ministry regulations.
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- Accept compliance of preventive measures as prescribed by the government, including submitting to alternative state quarantine (ASQ) in accredited hospitals/hotels for not less than 14 days upon arrival.
- Provide evidence of accommodation during the long stay visit.
- Provide proof of payment for hotel accommodation or admittance to hospitals chosen as alternative state quarantine (ASQ) facilities.
Requirements for Thailand STV
Foreigners applying for the STV will need to provide the following:
1. Proof of accommodation after the 14-day quarantine, which could be any of the following:
- Proof of payment for hotel or accommodation to be used after discharge from quarantine.
- Copy of a condominium title deed owned by the visitor or a family member.
- Evidence of renting accommodation – condominium or house.
- Evidence of payment for the purchase or lease of a condominium-type residence that foreigners can legally buy or lease.
2. Proof of medical and travel insurance with a minimum 100,000 USD coverage for COVID-19 medical treatment and a minimum coverage of 400,000 THB for other medical and accident expenses. The insurance must cover for at least 90 days which is the initial validity of the visa.
Foreigners with the evidence needed above will be eligible to apply for an STV from Thai embassies or consulates in selected countries.
STV Application Process
The applicant must get in touch with the Thai Embassy or Consulate or local office of the Tourism Authority of Thailand in their country or an accredited travel agency. An initial application will be submitted to the Bureau of Immigration for a background check. After receiving the approval from the Immigration Bureau, the applicant or the agency will be requested to submit the visa application form, pay the visa fee, provide the proof of ASQ accommodation, proposed chartered flight to Thailand and copy of the health insurance policy. The application will be submitted to the Ministry of Foreign Affairs.
After the visa application has been approved by the MFA, the applicant will collect the STV visa and the Certificate of Entry (COE) which will be issued by the Thai Embassy or Consulate in his/her current location. The applicant will also provide the Fit to Fly Medical Certificate which must state that the applicant does not have COVID-19 and this certificate must be issued within 72 hours before the flight departure.
Visa Fee and Validity
Eligible applicants will have to pay a visa fee of 2,000 THB and the visa holder will be allowed to stay in the country for 90 days. After this period expires, immigration officers will be able to renew the holder's visa twice, each for another 90 days at a time. Foreigners must submit an application and pay a fee in accordance with the rules.
Upon Arrival in Thailand
Upon arriving in Thailand, visitors must undergo health screening from the Ministry of Public Health. The STV holder will be issued a permit to stay for 90 days in Thailand if the tourists pass all screening measures. They will immediately depart the airport to begin the strict state quarantine at their paid
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ASQ/ALSQ. Once they are tested negative for COVID-19 after the 14-day quarantine, long-stay tourists will have the freedom to travel as they please around the country with a mobile application that will track their destination. The Thailand Special Tourist Visa (STV) holders can enter Thailand starting on 1 October 2020 until 30 September 2021.
Page 20, Paragraph 1.21
Question 15
Kindly elaborate on the various measures taken by Thailand government during the outbreak of the COVID-19 to mitigate the economic impact of the outbreak?
Answer
The government rolls out relief measures to mitigate the economic impact of the outbreak in three phases – first on 10 March 2020, second on 24 March 2020, and third on 7 April 2020. The most recent package has just been approved by the cabinet on 3 November 2020. The relief measures take different forms, including soft loans, tax deductions, tax deferrals, cash transfers, and expenditure reliefs.
Soft loans or low-interest loans have been made available to businesses in order to help them maintain the hiring of workers, to individuals with and without collaterals, and to SMEs. Soft loans have been issued not only via Specialized Financial Institutions (SFIs) but also, under supervision of the Bank of Thailand, commercial banks. Terms of government-owned pawnshops are also relaxed, and their interest rate reduced.
Multiple tax measures are applied:
• Additional tax deductions are allowed for expenditures incurred by SMEs for their hiring of workers as well as for interest payments incurred from the soft loans, while, for individuals, deductions allowed for health insurance premium are increased.
• Tax exemptions are also made to facilitate the working of the healthcare system. Hazard pays for healthcare workers are also tax-exempted. Duties and/or VAT are exempted from imported goods, including medicines and medical supplies, to be donated to government medical facilities, government agencies, or charities for treatment, diagnosis, or prevention of COVID-19.
• Other tax measures are also available to keep the businesses Exemptions of taxes and reductions of fees related to debt restructuring are also employed to promote debt restructuring in prevention of default and in order to alleviate the burden incurred by the debtors.
• Tax deferrals are allowed for several items, including corporate income tax, personal income tax, and excise tax for affected businesses and for petroleum products.
• To help businesses with liquidity, withholding tax rate is reduced and VAT refund process is accelerated.
• Collection of fees and charges levied by government agencies and state-owned enterprises is delayed. Rental fees levied on lessees under the obligation to pay rents on land used for residential or agricultural purpose will be waived for one year.
Cash transfers have been made to compensate for the loss of incomes during the lockdown to informal workers as well as farmers. To workers inside the social security system, benefits are provided to workers who are out of work for the force majeure reason, including workers who are asked to take a furlough, and workers who become unemployed by quitting or being laid off.
Reliefs on expenditures are given to both businesses and households, including discounts on utilities payments and are provided with an extended grace period to make such payments, while fixed deposits held by service providers are also refunded to select groups of users. Required contributions
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- 141 - to the social security fund are reduced for both employers and workers, and the period during which the payments can be made is also extended.
Fiscal disbursements are accelerated to fund local projects, especially those related to tourism sector and infrastructure development at the local level.
Financial measures are designed to support the financial market. The Corporate Bond Stabilization Fund is created to purchase securities issued by firms who may temporarily suffer from liquidity shortage. With supports from the Bank of Thailand, individual and SME debtors are encouraged to renegotiate their loan terms so as to reduce default rate while the economy is still recovering from the pandemic.
Page 24, Paragraph 1.36
Question 16
Can Thailand enlist some of the measures which BOT has put in place to make it easier for Thai businesses and residents to invest abroad?
Answer
Prior to the BOT's latest relaxation on foreign exchange regulations in the past few years, the BOT had relaxed the regulations to allow Thai residents to make direct investment abroad without limit as well as Thai institutional investors to invest in securities abroad freely.
During the past few years, the BOT further relaxed the regulations on investment in securities abroad by retail investors including increasing investment limits and expanding the scope of products in which they can invest such as unit linked insurance. Currently, the retail investors are allowed to make such investment through local intermediaries without limit and up to USD 5 million without going through the intermediaries.
Page 31, Paragraph 1.49
Question 17
Kindly mention the major sectors in which Thailand has major inflow of FDI from Singapore, China and Japan?
Answer
In 2019, FDI inflows from China were mainly in three sectors: Rubber manufacturing (40%), Auto parts manufacturing (19%), and Real estate related activities (19%). The FDI inflows from Singapore largely involved in holding activities (32%) and insurance business (29%). It is noteworthy that FDI inflows to insurance business in 2019 skyrocketed mainly due to the acquisition of Thai insurance company by a foreign investor. Moving onto the flows from Japan, financial intermediary and machinery and auto parts manufacturing received the most direct investment from Japan, accounting for 30% and 26% of its total investment in 2019, respectively.
Page 32, Paragraph 1.50
Question 18
Kindly provide the blueprint of the initiatives to boost investment and business opportunities in the coming years in Thailand? What are the various barriers related to Investment and Movement of People in Thailand?
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Answer
COVID-19 pandemic causes supply and demand shocks and disrupts economies across the world. Although Thailand has efficiently controlled the spread, the pandemic has caused an inevitable impact to the economy, society, and people's quality of life.
Due to the COVID-19, Thailand needs to boost local investment as well as foreign investment by focusing more on investment facilitation such as the relaxation of specific deadline in each process and the utilisation of electronic system for investment application process.
Thailand has planned to invest in the markets that it has a potential to expand in a new normal scenario, especially in technology and innovation that adds high value to the new S-curve industries including robotics and automation, aviation and logistics, bio-fuels and bio-chemicals, digital, integrated medical service, future automotive, smart devices, quality tourism and health tourism, agriculture and bio-technology, and food processing. Moreover, the government has invested to improve logistics and transportation system, and infrastructure, such as Laem Chabang Port, U-Tapao International Airport, and a high-speed rail linked to the airport, to attract foreign investors.
A prominent barrier to foreign investors and human resources are rules and regulations. To facilitate inbound foreign investors, executives, experts, and startups, the Law Reform Commission of Thailand has launched the SMART Visa and revised the relevant rules and regulations that impede business operations. The government also focuses on upskilling the country's workforce, promoting research and development, and enhancing the digital transformation.
Page 35, Paragraph 2.12
Question 19
Kindly elaborate on the various cross border trade measures taken by Thailand.
Answer
The Thai Customs Department trade facilitation measures on customs formalities such as import, export and the transit of goods are still in place, where traders have to proceed according to customs law and other related regulations as usual at any customs houses. We also have utilized a new information technology through the Thai Customs Electronic System (e-Customs) that is used for customs formalities such as import, export and transit of goods and also transformed the operation system into a more modern customs service, which utilizes electronic payment through the Bill Payment system. By implementing the new electronic payment system, we ensure the reduction of time and costs as well as better facilitation for traders.
Page 35, Paragraph 2.14
Question 20
Please highlight the policies taken in order to create a conducive and fair business environment for trade in Thailand.
Answer
As establishment of Trade Competition Commission Office as an independent agency is an important progress to create the fair business environment in Thailand. Regarding Competition Act B.E. 2560 (2017), there are several reasons to establish the Trade Competition Commission as an independent agency. Firstly, with independence, the Commission can operate and support the trade competition freely without any interference and be able to execute their works effectively and efficiently. Moreover, it is intended that the Commission should have a transparent, consistent, and sufficient source of the budget for the supervision and administration for the trade competition. Furthermore, the Trade Competition Council was expected to have a brand-new administrative method to push the organisation's administration forward with activeness and promptness. In terms of the structure of work, the Council should have the working process which emphasises flexibility and creates
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- 143 - spontaneous learning, so to encourage its personnel to become more active and strive for new knowledge that is beneficial for their jobs.
Page 39, Paragraph 2.24
Question 21
What are those imports from developing countries on which Thailand grants preferential tariff treatment under its GSTP?
Answer
Thailand grants GSTP to developing countries according to The Global System of Trade Preferences among Developing Countries.
See Notification of the Ministry of Finance on website of the Customs Department at https://www.customs.go.th/cont_strc_simple_net_with_download.php?ini_content=usage_fta_and _wto_01_20&ini_menu=menu_interest_and_law_160421_01&left_menu=menu_fta_and_wto.
Page 40, Paragraph 2.29
Question 22
Could Thailand please provide more detailed information to facilitate cross-border e-commerce transactions?
Answer
The factors to facilitate cross-border e-commerce transactions include paperless-trading, e-Authentication & e-Signature, online consumer protection, cross-border transaction of Information by electronic means, online personal protection, and location of computing facilities.
Page 52, Paragraph 3.1.2.3
3.1.2.3 Applied tariff
Question 23
What is the reason for keeping higher average MFN rate for transport equipment sector?
Answer
The applied tariff rates are not higher than the bound rates. Moreover, some of these tariff rates are reduced by Free Trade Agreement negotiations.
Page 62, Paragraphs 3.52-3.54
3.1.5.2 Safeguards
Question 24
Can Thailand please explain the reason and time period if it has taken any transitional safeguard measures?
Answer
Thailand has never applied any transitional safeguard measures. The implementation of the transitional safeguard measures would be conducted in compliance with the agreements.
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Page 66, Paragraphs 3.70
3.2.4.1 Bonded warehouses
Question 25
Can Thailand please explain if the exemption from import duties and taxes for the imported goods to be used further as an input for exports amounts to export subsidy within the meaning of ASCM agreement and is it compatible with the ASCM?
Answer
The exemption of import and export duty for goods released from bonded warehouse is under the requirement of Article 126 of the Custom Act B.E.2560 (2017) which complies with the Revised Kyoto Convention.
Page 85, Paragraph 3.3.3
3.3.3 Sanitary and phytosanitary requirements
Question 26
Does Thailand agree to the fact that all SPS measures taken by them are within the Appropriate level of Protection (ALOP) as per WTO Agreement on SPS?
Answer
According to Thailand proceeds the sanitary and phytosanitary measures based on the Agreement on the Application of Sanitary and Phytosanitary Measures that members have the right to take sanitary and phytosanitary measures necessary for the protection of human, animal or plant life or health.
Page 92, Paragraph 3.186
Question 27
Does Thailand allow cross-border supply by foreign entities through local operators for government procurement or if any Thai entity require those supply for the purpose of government contracts?
Answer
Thailand does not have prohibition on cross-border supply by foreign entities through local operators as joint ventures.
Page 99, Paragraph 3.3.6.2.3
3.3.6.2.3 Mergers
Question 28
Can Thailand explain the regulatory framework and requirements for Cross-Border mergers?
Answer
The Cross-Border mergers which may substantially reduce competition in a market of Thailand or may cause a monopoly or result in a dominant position in a market of Thailand shall be proceeded pursuant to the Trade Competition Act of 2017 (Sections 51-53), as well as relevant Commission's notification such as Criteria, Procedures and Conditions in requesting for the permission and the permission for business merging B.E. 2561, as well as Rules, Procedures and Conditions for Notification of Business Merging Results B.E. 2561.
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Nevertheless, this is quite difficult for the Office of Trade Competition Commission (OTCC) to enforce the Trade Competition Act of 2017 to this issue since it might impact the market structure and there might be no subsidiary companies, dealers, or agents of the companies that engage in the Cross-Border mergers located in Thailand; therefore, the OTCC will consider and address this issue case by case in accordance with the Trade Competition Act of 2017, as well as proceed other mechanisms such as exchange of information and international cooperation to support our competition law enforcement.
Page 108, Paragraph 3.245
3.3.7.6 Trademarks
Question 29
Does Thailand recognize the use of smell marks within the ambit of its Trademark laws and regulations?
Answer
Smell marks do not fall within the ambit of Thailand's Trademark law.
Page 142, Paragraph 4.121
Question 30
Thailand is requested to provide an overview on investment made by "insurance companies" in financial products.
Answer
Office of Insurance Commission (OIC) supervises investment activities by implementing the Notification of the Insurance Commission on Investment in Other Businesses of Life/Non-life insurance companies.
The Notification prescribed the eligible asset classes that insurance companies could invest, such as Deposit in Financial Institutions, Thai government debt instruments, Private debt instruments, Thai equity instruments and some complex investment assets. Moreover, the insurance companies are also allowed to invest in international markets in order to manage asset allocation and diversification.
Page 117, Paragraph 4.19
With respect to Paragraph 4.19 (page 117) regarding Thailand's Tariff rate quotas, it is mentioned that "The fill rates for garlic, dried longans, maize for feedstuff, copra, soya bean oil, palm oil, and raw silk were zero, while those for coconuts, rice, coconut oil, sugar and sucrose, and unmanufactured tobacco and tobacco leaves were less than 5%." Thailand has explained that the low fill rates are on account of imports from ASEAN countries and Thailand being a grower as well as exporter of many of these products.
Question 31
In this regard, India would like to understand if such fill rates will prevail even in the future for the products being imported from ASEAN or produced and exported by Thailand? What measures are being undertaken by Thailand to improve the fill rates as part of their WTO commitments?
Answer
In order to enhance an efficiency of quota allocation and consistence with current trade situation, Department of Foreign Trade, Ministry of Commerce currently has revised the regulations, procedures and conditions of quotas allocation for imported agricultural products.
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Page 115, Paragraph 4.12
With Reference to Paragraph 4.12 (Page 115), "Thailand has been using a number of policy tools, both at the border and domestically, to facilitate the development of the agricultural sector (see below). However, these measures may not always give the desired results. According to a World Bank study, subsidies for rice production may have slowed the need to transform Thai agriculture. While Thailand is currently the world's second largest exporter of rice, its rice exports face higher production costs compared to competitors from neighbouring countries. This is compounded by volatile foreign exchange rates. The authorities disagree, and stated that Thailand has been developing new rice varieties according to the needs of the world market by dividing rice products into five major groups, namely Thai Hom Mali Rice, Thai fragrant rice, white rice (hard and soft textures), glutinous rice, and niche market rice (such as organic rice, and high-nutrition rice)."
It is understood that Thailand has implemented a programme named " The Direct Payment to Cover Rice Production Cost Program " with an aim to reduce cost of production and support agricultural tools and essentials inputs for rice farmers. However, as per the World Bank Study referred in the above para, providing subsidies for rice production would slow down the need to transform Thai Agriculture.
Question 32
India is interested in knowing Thai Government's view with regard to the effectiveness of the program in reducing the production costs faced by rice farmers. Details may also be provided of the program with supporting statistics on the cost of production before and after the implementation of the program with reference to relevant years- beginning of the programme and most recent evaluation year? How does the cost of production fair with the domestic and export price of rice in recent years? Relevant statistics may be provided to support the response.
Answer
First of all, Thailand would like to clarify that we normally do not have "The Direct Payment to Cover Rice Production Cost Program". We will use the support program only if there is any crisis or disaster, the implementation will be limited, just to cope the lost for the farmers
To effectively reduce the production cost, Thailand has launched the Collaborative Farm Project to reduce the production costs for farmers throughout the supply chain. The project will encourage farmers to cooperate with each other to decrease cost of production per unit, increase product quality standard, and increase the negotiation power. The project will provide certain markets, also. In fiscal year 2020, Thailand evaluated major crops' operations, and found that the production costs were decreased, such as, plant varieties, agricultural inputs, fertilizers, etc. Furthermore, farmers moved from using chemicals to biological substances, as well as, made a group to bargain cheap agricultural inputs. Therefore, agricultural net income increased; for instance, income of rice increased for 69.97 USD/Rai, income of maize increased for 50.94 USD/Rai, income of cassava increased for 67.36 USD/Rai, income of sugar cane increased for 37.86 USD/Rai, and income of oil palm increased for 53.21 USD/Rai.
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INDIA – ADDITIONAL QUESTIONS
Paragraph 4.152 of the Secretariat Report states:
In order to embrace the country's transition toward a digital economy, in 2019, Thailand passed several new laws and amended existing ones, to foster a supportive environment. The Cybersecurity Act established new authorities responsible for cracking down on cybercrimes and protecting the national critical information infrastructure; the Personal Data Protection Act provides rules and mechanisms for personal data protection. In addition, the Electronic Transaction Act was amended twice to respond to the latest technology developments.
Question 1 i. In furtherance of Thailand's transition to digital economy, are there any other laws and regulations that have been or are likely to be adopted by Thailand?
Answer
Laws that are already in force:
- Re-organization of Ministry, Bureau and Department Act, B.E. 2559 (2016) - Establishing Ministry of Digital Economy and Society
- Digital Economy and Society Development Act B.E. 2560 (2017)
- Computer Crime Act (Amendment) B.E. 2560 (2017)
- Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Service (Amendment) B.E. 2560 (2017) and B.E. 2562 (2019)
- Electronic Transactions Development Agency Act B.E 2562 (2019)
- Electronic Transactions Act (Amendment) B.E. 2562 (2019)
- National Council for Digital Economy and Society Act B.E.2562 (2019)
- Cybersecurity Act B.E. 2562 (2019)
- Personal Data Protection Act B.E. 2562 (2019)
- Electronic Transactions Act (4th version) Digital ID B.E. 2562 (2019).
For the next step, Thailand plans to issue the Subordinate Legislation under the Cybersecurity Act and Personal Data Protection Act.
Question ii. Could Thailand please explain and elaborate specific provisions related to the following in its laws, regulations or policies related to digital economy:
a) Cross border transfer of personal/ non-personal data
b) Localization of data (except telecom sector where there is no requirement of data localisation as per the report)
c) Data sharing obligations and provisions, if any, with regard to SME/startups
d) Sharing of source code of digital technologies with public authorities
e) Data adequacy arrangements with other countries
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f) Measures to address anti-competitive behaviour due to network effect of digital monopolies
g) Regulations of social media applications.
Answer
Legal Frameworks related to the requested topics include:
- Electronic Transaction Act
- Personal Data Protection Act
- Cybersecurity Act
- Computer Crime Act.
Paragraph 3.120 of the Government Report states:
To date, ASEAN has concluded the seven following Mutual Recognition Arrangements (MRAs) aiming to facilitate mobility of professionals/skilled labour in ASEAN through recognition of their qualifications namely:(1)MRA on Medical Practitioners,(2)MRA on Nursing Services,(3)MRA on Dental Practitioners (4)MRA on Architectural Services (5)MRA on Engineering Services (6)MRA on Accountancy Services, and (7)Framework Arrangements for the Mutual Recognition of Surveying Qualifications. ASEAN is also undergoing the implementation process for the MRA on Tourism Professionals which aims to facilitate mobility of tourism professionals within ASEAN, and at the same time, improve the quality of services delivered by tourism profession.
Question 2
Is Thailand also engaged in/envisages negotiations of similar arrangements with other FTA partners bilaterally? May provide details on the same.
Answer
Currently, Thailand has no additional commitment on MRAs on professional services beyond those listed in Para 3.120.
Paragraph 3.3.1.2 of Secretariat Report on Tax and non-tax incentives
Question 3
Could Thailand elaborate on the types and quantum of subsidies/incentives/tax breaks provided to service providers in Thailand under different Government programmes for all modes of supply? How much of these subsidies/incentives were provided to services exporters of Thailand in 2019?
Answer
Under Thailand Board of Investment's scheme, incentives will be granted to activities only in Mode 3 of service supply (Commercial presence) vary. For more details, please visit our website at www.boi.go.th.
Paragraph 1.46 of the Secretariat Report states:
Thailand posted a surplus in the trade in services balance throughout the review period, reflecting mainly the strong performance of tourism-related services but also the country's over-reliance on the tourism industry. In 2019, travel and passenger transportation accounted for 79.4% of total services exports. The second-largest contributor, with 14.2% of export receipts, was the item "Other business services"48. Regarding imports, transportation services (mostly freight) had the highest share (32.2%), followed by "Other business services" and travel (mainly personal travel). The share
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Question 4
Could Thailand elaborate on the mechanism of preparing, sectoral and modal coverage of its data on international trade in services? How frequently is it released in the public domain?
Answer
Thailand's services trade statistics are compiled on a monthly basis, covering 12 standard services categories as stated in the IMF's sixth edition of the Balance of Payments and International Investment Position Manual (BPM6). Data from different sources (FX transaction reported by banks, surveys, and estimation models) are integrated to ensure comprehensive coverage, especially for components most relevant to the Thai economy. As data are collected and derived primarily to serve the balance of payments (BOP) compilation, produced statistics on services trade are therefore not classified in accordance with WTO's "mode of supply" or with "sectoral breakdown".
Services trade statistics are disseminated on the BOT's website as part of the BOP table on a monthly basis (as an aggregated amount of services, primary income, and secondary income), and on a quarterly basis (with breakdown into standard services categories).
(https://www.bot.or.th/English/Statistics/EconomicAndFinancial/Pages/StatBalanceof Payments.aspx)
Paragraph 3.80 of the Secretariat Report states:
With the aim of promoting Thai products and services that meet international quality standards, the DITP has implemented the Thai Select and the Thailand Trust Mark (T-Mark) programmes. Thai Select is a seal of DITP approval, recognizing high-quality standards; it is granted to Thai restaurants overseas and processed Thai food products. The T-Mark is intended to be a symbol of excellence and trusted quality; it was created to add a distinctive value to the Thai products and services that are made in Thailand. Thai entrepreneurs have received the T-Mark recognition in six industry groups: food and agriculture industry, industrial products, lifestyle industry, fashion, other industries (medical equipment, pharmaceutical products, cosmetics and spa products), and service businesses (wellness and medical services, trade logistics, and animation and digital content).
Question 5
Thailand may provide the details of regulations to mandate quality of delivery of health services to foreign travellers.
Answer
1. Health Business Establishment Act B.E. 2559 (2016):
https://www.krisdika.go.th/data//document/ext851/851957_0001.pdf.
2. Medical Facilities Act B.E. 2541 (1998):
https://www.krisdika.go.th/data//document/ext809/809996_0001.pdf.
3. National Health Security Act B.E. 2545 (2002):
http://eng.nhso.go.th/assets/portals/1/files/NHS%20ACT_book_revised%20Apr5.pdf.
Table 3.27 of the Secretariat Report provides a list of goods and services under price control as on March 2020 which also includes treatment services, medical services and other services of medical institutions relating to treatments.
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Question 6
Thailand may provide details of the regulations related to price controls for this sector specifically, including delivery of medical and wellness services to foreign travellers.
Answer
At present, goods and services under the "Controlled Goods and Services" list under the Prices of Goods and Services Act B.E. 2542 (1999) are regulated by notifications of the Central Committee on Prices of Goods and Services (CCP). They include key measures, for example, price control (only on surgical masks), monthly notifications of prices and quantities, notifications of different information such as costs, prices, details of goods, price adjustments, and warehouse details. For more information of different measures/notifications, please visit https://law.dit.go.th/SearchResultUI.aspx?DocID=2370.
As for the measures being imposed on medicines, there are requirement for private hospitals, manufacturers, importers, and distributors to notify prices of medicines to the Department of Internal Trade (DIT) in order to publish the selling prices of each private hospital through the DIT's website. Private hospitals are also required to show a QR code at any clearly visible areas in order for patients to easily access the pricing information. Moreover, they are required to notify adjustments of the prices of medicines, medical supplies for medical treatments and medical services to DIT 15 days in advance of the adjustment.
Question 7
Thailand has emerged as a major player in medical value and wellness travel in the region.
Could Thailand elaborate on the measures/support for grievance redressal related to healthcare sector, especially for health and wellness services to foreign travellers.
Answer
1) Visa exemption for patients
Thailand allows 90-Day Stay on Medical Ground with 4 followers for 11 countries: the member countries of GCC (Saudi Arabia, Kuwait, Oman, United Arab Emirates, Qatar and Bahrain) and CLMV (Cambodia, Laos, Myanmar and Vietnam), together with China. Currently, the United States and Japan are being considered the countries allowed for visa exemption for patients who receive medical treatment in Thailand, as well as other highly potential countries.
2) The extension of the Long Stay Visa for elderly (10 Years)
Currently, South Korea, Belgium, Austria and New Zealand are being considered the countries allowed to obtain the extension of the Long Stay Visa for elderly (10 Years). Originally, there are 14 member countries: Denmark, Norway, Netherlands, Sweden, England, France, Finland, Italy, Germany, Switzerland, Australia, the United States, Japan and Canada.
3) The extension of the Long Stay Visa for elderly (1 Year)
The extension of the Long Stay Visa for elderly (1 Year) must include health insurance.
Paragraph 2.8 of the Secretariat Report inter alia states:
Thailand 4.0 is the Government's key development policy underpinning the National Strategy. Its aim is to transform Thailand into a value-added, innovative and knowledge-based economy. Thailand 4.0 is based on the following core elements: advancing technology and innovation to increase productivity of already high-performing industries; developing new technology-based industries with great growth potential; enhancing Thailand's position as a regional hub by upgrading its physical infrastructure (ports, road and rail links, and airports); and promoting the digital competitiveness of Thai SMEs. Ten industries have been targeted under Thailand 4.0: the first five (called S-curves) are existing industries: next-generation automotive; smart electronics; medical
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Question 8
Could Thailand elaborate on the regulations related to telemedicine and tele-education in force? Are foreign service providers allowed to provide telemedicine and tele-education services as per the current autonomous regime?
Answer
Thailand has no restriction for providing services through Mode of telemedicine and tele-education services. However, a service provider for aforementioned sectors shall be subject to related laws and regulations. For example, in case of the medical advice services, a service provider shall obtain a healing arts of practitioner licence from the Medical Council of Thailand.
Please refer to the Announcement of the Medical Council of Thailand No. 54/2020 On Telemedicine Practice Guidelines (Telemedicine) and Online Clinic published in the Royal Gazette on 21 July 2020.
(http://www.ratchakitcha.soc.go.th/DATA/PDF/2563/E/166/T_0052.PDF) There is no specific reference to foreign service provider.
In addition, the Department of Health Service Support, Ministry of Public Health is also drafting new guidelines to regulate private healthcare service providers. It is not yet available to the public.
Audio–visual services
Question 9
Could Thailand elaborate on regulations related to supply of audio-visual services by foreign service providers, including for services like audio-visual post-production services (CPC Ver.2 9613) and sound recording services (CPC Ver.2 9611) across all modes of supply? Are the restrictions on foreign service providers different from those related to domestic service providers? Is there some preferential treatment given to local content?
Answer
Thailand has not undertaken market access commitments on audio-visual post-production services and sound recording in WTO. The service provider shall be subject to related laws and regulations such a:
- National Film and Video Board Notification on the Request for the Permission for Foreign Film Production in Thailand on rules, regulations, and measures about asking for permission and permission to producing the foreign film in Thailand B.E. 2552 (2009)
- Film and Video Act, B.E. 2551 (2008)
- Foreign Business Act, B.E. 2542 (1999)
- Broadcasting and Television Business Act, B.E. 2551 (2008)
- The Regulations of National Parks, Wildlife and Plant Conservation Department on permission to producing the foreign film in National Parks B.E. 2552.
A foreign film producer who intends to film production in Thailand shall submit the permission to the Department of Tourism, Ministry of Tourism and Sports which oversees the Film and Video Act, B.E. 2551 (2008).
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Thailand has no restriction for foreign service provider to provide post-production service and sound recording service, but this service provider shall be subject to criteria and qualifications according to related Thai laws and regulations.
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INDONESIA
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Paragraph 22, Page 11
The financial sector remained sound and stable during the review period, despite challenging external and internal conditions. The authorities continued to improve the regulatory and supervisory frameworks to enhance financial stability. Measures were also taken to modernize the sector (such as the adoption of regulations to enable the use of digital technologies and support a more inclusive FinTech system) and to allow greater foreign participation in financial institutions.
Question
How does Thailand Government regulate the infant startup company in the FinTech industry?
Answer
Ministry of Finance (MOF) in cooperation with the Bank of Thailand (BOT), the Securities and Exchange Commission (SEC), and the Office of Insurance Commission (OIC) have been consistently advancing Thailand's financial technology (Fintech) towards the goals in efficiency, security, and safety. The activities / services to be provided by FinTech companies will determine whose regulatory regime will apply. For example, FinTech firms that pursue e-payment or P2P lending activities could be subjected to BOT's purview, while firms seeking to offer capital market- or digital asset-related products / services could be under SEC's oversight. The three regulators coordinate closely both at policy and working levels to create an enabling environment for useful innovations, keeping in mind that this is an ongoing effort, particularly in fine-tuning regulatory regimes and building supervisory capacity. All three regulators have launched regulatory sandbox initiatives to allow players to experiment with new products / services.
Question
Is there any specific competition policy that has been set out by the government to regulate the competition between conventional bank and Fintech?
Answer
The government has not set out any specific competition policy to regulate the competition between conventional banks and Fintech providers. However, the financial sector is covered under the Trade Competition Act B.E. 2560 (2017). For Thailand, in many cases incumbents and FinTechs are actually working together, instead of competing.
Paragraph 3.139, Page 82
Standards and other technical requirements are regulated under the National Standardization Act B.E. 2551 (2008), and the Industrial Products Standards Act B.E. 2511 (1968) and its amendment (No. 8) B.E. 2562 (2019). Amendments made by the Industrial Products Standards Act (No. 8) B.E. 2562 (2019) include:
• mandatory standards are enforced by a ministerial regulation, not by a royal decree.
Questions
What is the difference between ministerial regulation and royal decree in terms of its degree of authority and the reason of this amendment?
To what extend this amendment affects the implementation of standard and other technical requirements in Thailand, especially in relation with imported products?
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Answers
Royal Decree is enacted as law and signed by the King with the advice of the Cabinet, while Ministerial Regulation is enacted by the Ministers with the approval of the Cabinet. Mandatory standards being enforced by ministerial regulations instead of Royal Decrees is the result of the amendment to the Industrial Product Standards Act B.E. 2511 (1968). The purpose of this amendment is to simplify the process of standards development. Therefore, it does not affect the implementation of standards and other technical requirements in Thailand. The imported products are required to obtain a licence whether prescribed by the royal decrees or ministerial regulations.
Paragraph 3.16, Page 51
Thailand does not have legislation on non-preferential rules of origin, and notified this to the WTO under Article 5 of the Agreement on Rules of Origin.
Question
Could you please clarify how the Government defines and proves/confirms the country of origin of goods in the application of most-favoured-nation basis?
Question
Paragraph 3.33, Page 56
Thailand provides tariff- and quota-free access to practically all goods originating in ASEAN partners under the ASEAN Trade in Goods Agreement (ATIGA). In addition, Thailand applies preferential tariffs under the trade agreements signed by ASEAN with Australia; China; India; Japan; New Zealand; the Republic of Korea; and Hong Kong, China; and under its own bilateral trade agreements with Australia, Chile, India, Japan, New Zealand, and Peru. Furthermore, Thailand provides duty-free and quota-free market access for imports from LDCs (Table 3.5).
Could Thailand submit detail information on the implementation and utilization tariff- and quota-free access under the ASEAN Trade in Goods Agreement (ATIGA)?
Answer
Under ATIGA, Thailand has already eliminated duties on all products and has provided quota-free access to all goods originating in ASEAN partners except the sensitive list, which are 15 tariff lines (8 digits) covering coffee beans, potatoes, copra, and cut flower plants. For information of the FTA utilization, please visit http://www.dft.go.th.
Question
Is there any member that has trade agreement with Thailand still subjected to import duties? If the answer is positive, could Thailand explain the reasons?
Answer
Thailand currently has implemented 13 of Free Trade Agreements with ASEAN; Australia; New Zealand; China; Japan; Republic of Korea; India; Hong Kong, China; Peru; and Chile. There are some sensitive list remain in those FTAs.
Questions
From the Secretariat Report, Indonesia notes that there is no restriction for importers instant coffee. Indonesia seeks clarification if there is a requirement to issue import license for ready-to-drink instant coffee (i.e. recommendation from relevant authorities). Please elaborate more on the rationale behind the requirement.
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Please also clarify should there is any specific period of time in which agricultural products (i.e. Coconuts) are allowed/prohibited to be imported into Thailand.
Answers
Please visit http://www.dft.go.th for more information.
Paragraph 3.55, Page 62
Thailand reserved its right to take special safeguard (SSG) action on 55 HS02 eight-digit agricultural items, including milk, potatoes, onions, garlic, coconuts, coffee, tea, pepper, maize, rice, copra, soya-bean oil, crude palm/coconut oil, sugar, non-alcoholic beverages, tobacco, and raw silk. During the review period, Thailand notified to the WTO that it did not invoke the SSG provisions under Article 5 of the WTO Agreement on Agriculture.
Question
Is there any special safeguard provisions invoked after the review period (July until now)? Please provide an update and if so, please provide detail information on the basis for the imposition of SSG.
Answer
Thailand invokes special safeguard (SSG) on coconut (HS code 0801.12.00 0801.19.10 and 0801.19.90) between 25-31 December 2020 and already submitted MA 5 notification to the WTO Secretariat.
Paragraph 3.39, Page 57
The Investment Promotion Act allows the Board of Investment (BOI) to request the MoC to ban imports of goods competing with those produced by a domestic industry, with a view to assisting the industry. The authorities stated that the BOI has not made any such request.
Question
Please explain this matter in detail.
Answer
Under the Investment Promotion Act (1977), BOI has no direct authority to impose import restriction on any products. The measure is under the consideration of the Ministry of Commerce under the requirement of the Export and Import of Goods Act, B.E. 2522 (1979).
Paragraph 3.144, Page 83
The main categories of products that are subject to compulsory standards are as follows: civil and construction materials; consumer products; electrical/electronic engineering; fluid engineering; food; heat transfer engineering; medical, science; paints, colours, and varnishes; mechanical engineering and vehicles; and chemicals. Products subject to compulsory standards must comply with the standard and show the mandatory certification mark. (…)
Question
Could you please provide detail information on the scheme of mandatory certification mark, especially for the food?
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Answer
To comply with the strategy and policy of Ministry of Industry, the Thai Industrial Standards Institute (TISI) develops national standards concerning the processed agricultural products and processed food products only.
Paragraph 4.193, Page 154
A cargo reservation policy remains in place, requiring that goods directly or indirectly imported into Thailand by government agencies or public enterprises must be transported by Thai-flagged vessels on designated shipping routes, where such vessels are available.
Question
Could you please clarify the mandatory requirements for imported goods transported by Thai-flagged vessels?
Answer
According to the criteria of Thailand's cargo reservation measure, government authorities, government agencies or public enterprises or their contract parties which intend to import goods to Thailand (including transshipment) on nine designated mandatory shipping routes, namely, from (1) Japan (2) Republic of Korea (3) Chinese Taipei (4) Hong Kong, China (5) Singapore (6) Europe (Norway, Sweden, Finland, Denmark, United Kingdom, Ireland, Germany, Netherlands, Belgium, France, Spain, Portugal and Italy), (7) United States (8) China, and (9) Malaysia to Thailand are required to engage Thai-flag vessels for such transportation. As shipping routes other than those nine designated routes are not mandatory, any vessels flying Thai or non-Thai flag can be engaged to carry the imported goods.
Thai-flag vessels in this context include vessels registered with the Marine Department of Thailand to fly Thai flag and foreign vessels chartered by Thai shipowners or operators which receive the same rights and privileges as Thai-flag vessels.
If a government authority/agency or its contract party decides to engage service provided by a Tha-flag vessel or a chartered foreign vessel receiving the same rights and privileges as Thai-flag vessels, the government authority/agency or the contract party is required to notify the Marine Department for the use of such service at least one day before imported goods are loaded.
In addition, when such vessel arrives at a Thai port, the responsible government authority/agency or its contract party is also required to notify its arrival to the Marine Department within seven days.
If neither Thai-flag vessels nor chartered foreign vessels are available for services, the government authority/agency or its contract party is required to seek permission to engage services provided by non Thai-flag vessels from the Marine Department no less than 10 days before imported goods are loaded. After receiving such request, the Marine Department will contact Thai shipowners/operators to see whether any Thai-flag vessel or chartered foreign vessel is available to transport imported goods to Thailand. If the Department receives a reply from a Thai shipowner/operator that he has a Thai ship available to provide service, the Department will not grant permission to the requested government authority/agency or its contract party and insist that the requested government authority/agency or its contract party must engage the service provided by the reply shipowner/operator. On the other hand, if the Department receives no reply from Thai shipowners/operators, it will grant permission to the requested government authority/agency or its contract party for the use of non Thai-flag vessel to transport imported goods to Thailand.
When the non Thai-flag vessel arrives at a port in Thailand, the government authority/agency or its contract party must notify the Marine Department of such arrival. If any government authority/agency or its contract party does not use the service of Thai-flag vessel or chartered foreign vessel or does not seek permission to use non Thai-flag vessel from the Marine Department, such government authority/agency or its contract party is required to pay a special fine to the Marine Department.
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Question
Secretariat Report states that shrimp and prawn production have the highest share in Thailand's aquaculture production. Is there a ban or cancellation of import permits if domestic production meets the demand?
Answer
Currently, the Ministry of Commerce does not have any regulation of ban or cancellation of import permits. However, before issuing any import measure, government agency also considers reasons, necessary and the compatibility of WTO rules.
GENERAL QUESTIONS
Question
Could Thailand explain the procedures and requirements on doing construction business in Thailand?
Answer
Construction, except for (i) that of infrastructure for delivery of public services in the sphere of public utilities or transportation, requiring the use of special machinery, technology or expertise and having a minimum foreign capital of THB 500 million; and (ii) other types of construction as prescribed by ministerial regulations, falls into List 3 of the Foreign Business Act B.E. 2542 (1999). No foreign equity limits. Approval required from the Foreign Business Committee, and licence granted by the Director-General of the Department of Business Development. Hence, foreigners who operate businesses under List 3 must obtain foreign business license (FBL) under FBA and sector-specific license under sectorial regulation (if any).
Question
How many construction workers that are needed by Thailand for the next five years?
Answer
Currently, Thailand is working on the projection of the labour demand for 2022-2026. However, according to the labour demand study for 2017-2021, the demand for construction labour in 2020 and 2021 are 0.67 and 0.7 million respectively.
Question
How many skilled and certified construction workers in Thailand? Please provide data both domestic and foreign workers.
Answer
In 2020, there were 2,160,338 construction workers in Thailand which 1,257,266 were formal and 903,072 were informal. (Source: http://statbbi.nso.go.th/analytics/saw.dll?Dashboard)
Question
How many construction service companies in Thailand?
Answer
There are about 46,259 establishments in Thailand. (Source: The information from The 2017 Industrial Census: basic information.)
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ISRAEL
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
2 TRADE AND INVESTMENT REGIMES
2.3 Trade Agreements and Arrangements
2.3.2 Regional and preferential agreements
2.3.2.1 Overview
2.21, 2.23
"As a member of the Association of South East Asian Nations (ASEAN)20, Thailand is a party to the ASEAN Economic Community (see below), and a signatory to ASEAN's RTAs with third countries (Australia and New Zealand; China; India; Japan; Republic of Korea; and Hong Kong, China).
Bilaterally, Thailand has trade agreements in force with Australia, Chile, Japan, India, New Zealand, and Peru. In total, Thailand currently has 13 RTAs in force.
Negotiations on RTAs between Thailand and the European Union, and between Thailand and the European Free Trade Area (EFTA), respectively, have been put on hold since 2014. However, the current Government, elected in June 2019, has launched an internal procedure on the possibility of resuming negotiations with the European Union and EFTA in the near future… On a bilateral level, Thailand continues trade negotiations with Pakistan, Sri Lanka and Turkey. "
Question 1
Israel would appreciate if Thailand could elaborate on its decision making process for launching FTA Negotiations: What are the criteria? What is the internal process needed in order to start negotiations? How are the partners and focus areas for FTAs prioritized?
Answer
Thailand's priorities for FTA negotiations are:
1) To enhance opportunities on trade and economic
2) To protect and preserve country's trade and investment interests.
Therefore, Thailand consider negotiating FTAs with countries who have potential trade growth with Thailand in recent years.
The negotiating processes are as follows.
1) Pre-negotiations
(1) Undertake studies and public hearing
(2) Solicit views from industries and stakeholders
(3) Submit the negotiations framework and position to the Cabinet for approval
(4) Cabinet approves
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2) Negotiations
(1) Rounds of negotiations
(2) Conclusion and legal scrubbing
(3) Signing an Agreement
3) Pre-ratification
(1) Article 178 of the 2017 Constitution requires a Parliamentary approval within 60 days
(2) Publish the Agreement in the Royal Gazette
4) After the Agreement enters into force
Parliament approves
• Ratification
• Monitoring, reviewing, and remedies
Parliament disapproves
• Dismissal/Amendment.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.2 Tariffs
3.1.2.1 Tariff structure
3.19
"Thailand's 2020 Tariff Schedule applies the ASEAN Harmonized Tariff Nomenclature (AHTN) consisting of 10,813 tariff lines (9,558 in 2015) at the HS eight-digit level, in the HS17 nomenclature. Of all tariffs, 92% are applied on an ad valorem basis. Among all the ad valorem duties, the applied MFN tariff rates vary between duty-free and 226%. Domestic tariff peaks affect 7.1% of all tariff lines, while international tariff peaks affect 26.8% of them. Overall standard deviation was 23.7% in 2020, the same as in 2014."
Question 2
It would be appreciated if Thailand could elaborate whether it has any planned tariff reduction initiatives for the near future. If so, which sectors or products are planned to be included in such initiatives?
Answer
Thailand revises its tariff structure on a regular basis and the tariff rates have been reduced according to the country's economic situation. Should there be any circumstances such as changes in economics, trade or investment which make tariff reductions deem appropriate or necessary, the tariff structure will be revised accordingly.
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3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.4 Import prohibitions, restrictions, and licensing
3.1.4.2 Import licensing
Table 3.8 Products subject to other import requirements, 2020
Products HS code (2017) Rationale Measures 3D printing machines, 8477.10.39, 8479.89.39 To prohibit the illegal use - Importers must be rapid prototyping of products registered with the DFT machines, and additive as importers of 3D manufacturing machines printing machines, and must notify the importation to the DFT, and report the import, possession, disposal and balance of these products to the DFT twice a year (end-June and end- December); and - Importers must notify Customs of importation Question 3
Israel would appreciate if Thailand could elaborate more on the rationale behind the restrictions and requirement to issue an import license for 3D printers, i.e. what are Thailand's main concerns regarding possible use of 3D printers? What information is being examined regarding the importers record before granting an import license? In addition, it would be appreciated if Thailand could provide past statistics regarding these licenses, for example how many import licenses for 3D printers were issues during the past two years.
Answer
To supervise, monitor and trace 3D Printing machines not to misuse and illegal use which will cause safety and national security problems. The importation of 3D Printing Machines require importers to notify the information before import. There is no requirement for import license. Number of Import notification confirmed by DFT; (1) year 2018 = 678 cases (2) year 2019 = 629 cases.
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JAPAN
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.1 National Policies towards Structural Reform
3.1.2 Trade and business facilitation
Question 1
Paragraph 3.16, Page 8
Japan would like to request Thailand to provide with the details regarding the Department of Business Development's several activities in order to deregulate business for foreign investors such as (1) e-Registration system, (4) Ministerial regulations.
Answer
DBD's e-Registration system and other online system are developed on the basis of service that aim to facilitate all of users. Foreign investors can use the e-Registration in order to incorporate their business entity (either partnership or company limited) and other matters regarding business registration.
Since 2013 The Ministry of Commerce has issued 4 Ministerial Regulation Prescribing Service Business Not Subject to Application for Foreign Business Permission (40 business categories) as follows.
• Securities business under the law on securities and securities exchange,
• Insurance business under the law on insurance,
• Financial institution business
• Representative office/regional office.
3.2 Sectoral Policies
3.2.1 Tariffs and customs procedures
Paragraph 3.25, Page 10
Question 2
According to some surveys targeting foreign companies, there are requests for improvement in tariff and customs clearance operations. Japan would like to request Thailand to provide the information of the actual operation or implementation.
Answer
The Thai Customs Department has Customs Notification No. 174/B.E. 2560 (2017) specifying the principles and progress of customs inspection during customs clearance process, in accordance with Customs Act BE. 2560 (2017), Section 158-159.
Section 158 - A customs officer shall have a power to inspect goods being passed through a customs formality or under a supervision of the customs, as well as to take a sample of goods for analysis, value assessment or other purposes for benefits of the government as necessary without paying a compensation. The samples shall be taken in a manner that causes the least possible loss or burden to an owner of the goods, and the remaining of sample shall be promptly returned to the owner.
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Section 159 - An exercise of the powers by the customs officer entrusted by the Director-General under Section 157 or by the customs officer under Section 158 shall be in accordance with the rules, procedures and conditions specified by the Director-General.
The customs officer shall have a power to enter into a place of business to examine or request for an account, a document, an evidence and any other information related to goods being passed or have been passed through customs formalities within a period of time not exceeding five years from the date of an importation of goods into, an exportation of goods out of or a transit of goods through the Kingdom.
3.3 Regional Trade Arrangements and Economic Cooperation Sectoral Policies
3.3.1 FTAs
Paragraph 3.98, Page 23
Question 3
Japan would like to request the Thai government to provide with the answer to the following question: What is the current position of the Thai government regarding its accession to the TPP11 Agreement, and what are the possible ways for Thai government to mitigate domestic barriers against Thailand's accession to the TPP11 Agreement?
Answer
Recently, the special committee created by the parliament has already concluded the CPTPP study and it is expected to submit the study to the Cabinet for consideration within November 2020.
According to the results, there were supporting groups who see benefits from CPTPP and concerning groups that still have concerns in joining the CPTPP. However, Thailand still needs to create more awareness and understanding and need a period of time to revise the domestic regulations to be in line with CPTPP.
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
1 ECONOMIC ENVIRONMENT
1.1 Main Features of the Economy
Paragraph 1.3, Page 13
Question 4
How is Thailand planning to overcome domestic structural constraints in its economy, particularly low levels of public and private investment?
Answer
The 12th National Economic and Social Development Plan aims to increase the national's research and development as a key to enhance an economic structure through the advance innovation. Moreover, the plan also highlights an investment in key infrastructure and logistics system in order to stimulate domestic investment and encourage regional integration.
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3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.4 Import prohibitions, restrictions, and licensing
3.1.4.1 Import prohibitions / 3.1.4.2 Import licensing
Paragraph 3.40, Page 57 & Paragraph 3.45, Page 59
Question 5
Please provide the following information regarding:
i) import prohibition on "Logs and sawn wood from teak trees, rubber trees or forbidden trees from the borders of the Tak and Kanchanaburi provinces" (Table 3.6 page 57), and,
ii) import requirement on "Logs, wood and all wooden products (imported into Thailand along the Thai-Myanmar and Thai-Cambodia borders)" (Table 3.8, page 59). a) Details of these measures, such as:
1) when these measures were introduced,
2) detailed specification of tree species and product categories covered by these measures,
3) whether or not the exact locations of logging are linked with these measures, and how they are specified if so,
4) national (or regional/local) authorities responsible for the administration of these measures,
5) procedures and necessary documentations in applying for import permission under such measures,
6) penalties in case of violation (e.g. penalties for violation of import prohibition, forgery of necessary documentations such as certificates of origin or evidences of approval for export, and other offense against these regulations). b) situation of import of illegal timber before these measures were introduced (e.g. the volume of illegally imported timber), c) outcome and effectiveness of these measures (e.g. how the volume of illegally imported timber decreased), d) compatibility with WTO rules of import prohibition (Understanding the necessity to deal with illegal logging, Japan would appreciate if Thailand would share the legal rationale behind the measures in terms of compatibility with WTO rules).
Answer a) Details of the measures:
1) when these measures were introduced
Answer: The measures of (i) was introduced in B.E. 2548 (2005) whereas the measures of (ii) was introduced in B.E. 2535 (1992)
2) detailed specification of tree species and product categories covered by these measures
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Answer: The measures of (i) cover timber, timber product that made by teak, dipterocarp and restricted species (157 species). Whereas the measures of (ii) cover all tree species of log, wood and all wooden products.
3) whether or not the exact locations of logging are linked with these measures, and how they are specified if so
Answer: The exact location is not needed.
4) national (or regional/local) authorities responsible for the administration of these measures
Answer: There are 6 government agencies responsible for the administration of the measures, namely (1) Ministry of Interior (2) Royal Thai Police (3) Ministry of Defense (4) Ministry of Commerce (5) Ministry of Natural Resources and Environment and (6) Customs Department, Ministry of Finance.
5) procedures and necessary documentations in applying for import permission under such measures
Answer: The documentation for importation (ii) is C/O or evidence of approval to export from the exporting country.
6) penalties in case of violation (e.g. penalties for violation of import prohibition, forgery of necessary documentations such as certificates of origin or evidences of approval for export, and other offense against these regulations)
Answer: Penalties depend on type of violation and the related law and regulation. The penalty of violation under the Ministry of Commerce regulation is indicated in Section 20 and 22 of the Export and Import Act B.E. 2522 (1979). b) situation of import of illegal timber before these measures were introduced (e.g. the volume of illegally imported timber)
Answer: No case was found. c) outcome and effectiveness of these measures (e.g. how the volume of illegally imported timber decreased)
Answer: No data because no case was found. d) compatibility with WTO rules of import prohibition (Understanding the necessity to deal with illegal logging, Japan would appreciate if Thailand would share the legal rationale behind the measures in terms of compatibility with WTO rules).
Answer:
- Article XX (General Exceptions) (g) for the reason of conservation of exhaustible natural resources.
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3.3 Measures Affecting Production and Trade
3.3.7 Intellectual property rights (IPRs)
3.3.7.3 Structure and use of the IP system
Paragraph 3.232, Page 106
Question 6
According to Report by the Secretariat, Thailand continues to experience a surge in applications for utility models which are not with substantive examination. In such a situation, it is concerning that number of lawsuits based on utility model right which can be granted easily than patent with substantive examination might increase. Japan would like to know how the government of Thailand copes with such situation.
Answer
To ensure the quality of utility models, Thailand is currently amending the Patent Act, which include the amendment on articles related to registration procedure of utility models.
4 TRADE POLICIES BY SECTOR
4.1 Agriculture
4.1.3 Agricultural policies
4.1.3.2 Border measures
Paragraph 4.19, Pages 117-118
Question 7
Can Thailand explain the reasons of low fill rates of rice (1.81%), coconut oil (2.25%), sugar and sucrose (1.26%) and soya bean cake for human consumption (0.66%)?
Answer
Rice: Thailand is a major producer and exporter of rice. Each year we produce rice sufficient for domestic consumption and export of around 10 million tons hence there is limited demand for imports.
Coconut oil: Coconut oil importers mainly imports products from ASIAN countries and use tariff benefit under AFTA, which gives tariff benefit more than WTO.
Sugar and sucrose: Thailand is a major producer and exporter of Sugar and sucrose. We can produce and manufactured sugar enough for domestic demand. So, there is low demand for importing sugar.
Soya bean cake for human consumption: The import quantity of Soya bean cake for human consumption depends on the specific requirement of soy sauce manufacturers accordance to their own production formula.
4.1.3.3 Domestic support
Paragraph 4.31, Page 120
Question 8
Can Thailand explain why the volumes of input subsidies (Article 6.2 supports) drastically varied from year to year and possibly specify the factors affecting the volume?
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Answer
Bank for Agriculture and Agricultural Cooperatives (BAAC) is a state-owned financial institution governed by the Ministry of Finance. We are assigned by the government to provide input subsidies to farmers under the government's policy.
For the volume of input subsidies each year, it depends on the government initiative.
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REPUBLIC OF KOREA
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Page 48, Paragraph 3.1
3.1. Thailand's customs procedures are governed mainly by the Customs Act B.E. 2560 (2017), which came into force on 13 November 2017.1 The Act, which repealed the Customs Act B.E. 2469 (1926), aims to modernize Thailand's customs law by easing customs procedures and bringing more transparency. It reduced incentives and rewards to customs officers and whistle-blowers; clarified customs offences and statutory penalties; imposed deadlines for post-clearance audits, duty evaluation, duty refunds, and appeals; and created an Appeal Committee, among other aspects (Table 3.1).
Table 3.1 [...]
Duty refund
The importers or exporters could claim a duty The importers or exporters may claim a duty refund refund within 2 years of the date of shipment. within 3 years of the date of shipment.
Question 1
In relation to customs duty refund, import duties are to be refunded to importers through customs refund procedures for re-export purposes, but many companies complained of inconvenience due to delayed refunds. Are there any institutional or legal changes under the revised version of the Customs Law in response to delays in duty refund?
Answer
According to the Customs Notification No. 177/2560. The importer who is granted an approval for duty drawback under Section 29 and requires claiming for duty drawback must submit a drawback claim to the Customs within six months from the date of exportation unless the Director-General grants extension of the period of time for a period not exceeding six months. The duty drawback for imported raw materials is based on the first-in first-out audit system.
In case where the submitted documents are complete and correct, the duty drawback is granted within certain periods of time from the date of receiving the drawback claim as following:
- within 15 working days, if the claim contains data of import and export declaration to not more than 100 in total
- within 30 working days, if the claim contains data of import and export declaration between 100-500 in total
- within 45 working days, if the claim contains data of import and export declaration to more than 500 in total.
Moreover, the duty drawback for the Exportation Division has developed duty drawback system by using modern technology to calculate the amount of duty drawback (e-Drawback system) automatically. This system is not only to facilitate an importer to get refund faster but also to track duty drawback process in every step. Please find attached the Customs Notification No. 123/2563.
Page 48, Paragraph 3.1
3.106. Thailand maintains a myriad of investment incentives, such as tax and duty deductions and exemptions, grants, permits for various activities, guarantees, and protection measures, among others (Table 3.17). Incentives are mainly regulated under the Investment Promotion Act, 1977 (which was most recently amended in 2017), and the Competitive Enhancement Act, 2017. Obtaining incentives under both Acts simultaneously is not possible. Most incentives are approved and granted by the Office of the Board of Investment (BOI), a government agency under the Office
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- 168 - of the Prime Minister. The authorities stated that the incentives are provided to domestic and foreign investors under the same conditions. The incentive system is complex, and there seems to be a lack of analysis on impact and effectiveness. The authorities stated that external experts evaluate the effectiveness of Thailand's investment promotion policy once every two years. According to the authorities, the most recent report found that the investment promotion policy contributed positively to the economy: in 2015 and 2016, the incentive schemes boosted real GDP growth by 3.31%, private consumption by 1.59%, private investment by 6.03%, exports by 4.29%, and employment by 0.46% on average.
Table 3.17 [...]
Non-tax incentives Permit to bring into the country skilled workers and experts to work in investment-promotion activities
Question 2
While entry permits for skilled workers is mentioned in the Secretariat report as one of the non-tax incentives for investment to Thailand, many foreign companies are having difficulty in making initial investments as they are required to hire four Thai workers for each foreign national to obtain a work permit under Thai labor law. (Any violation of these requirements is punishable by fine of 5,000 baht or up to three months in prison.) Is there any possibility that these work permit requirements will be mitigated in line with Thai's investment promotion policy?
Answer
The requirement on hiring four Thais for each foreigner in granting stay is set as criteria and conditions under the Order of the Royal Thai Police No. 327/2557 pursuant to the immigration Act B.E. 2522 (1979). This portion is in the regard of the criteria and conditions for consideration of application for a temporary stay in the Kingdom of Thailand and it is enforced by the Immigration Officer in a non-discrimination manner applying to all foreign businesses. This requirement is determined to guarantee employment of Thai people and national security. However, this requirement is reduced to one Thai worker to one foreign worker for three types of business: representative office of international trade business, regional offices and branch offices of overseas companies.
In addition, this restriction is exempted in case that any foreign investor coming to invest in Thailand under BOI Promotion Act, Industrial Estate Authority of Thailand Act, and Petroleum Act. Under these special Acts, foreign investors shall enjoy a tax free incentive and be facilitated in visa and work permit application and also be exempted from the 4:1 requirement.
Page 54, Paragraph 3.28
According to Thailand's Tariff Schedule for 2020, provided by the authorities and also notified to the IDB, the applied rates on a number of tariff lines are higher than the bound rates (Table 3.4).
Question 3
According to Paragraph 3.28 of the WTO Secretariat Report, Thailand's tariff schedule with respect to six items exceeds its bound rates. Could Thailand please provide clarified explanations for this, particularly in terms of WTO consistency?
Answer
Thailand's applied tariff rates under The Ministry of Finance RE: Exemption Duty, Decreasing and Increasing Customs Duty Tariff rate under the obligations of Marrakesh Agreement Establishing The World Trade Organization, dated 10 November B.E. 2560 (2017) totally comply with the bound rates under WTO, while applied tariff rates under other Notifications besides the said Notification are applied to non-WTO members. The exporters/importers from WTO member countries must indicate their origin during the customs procedures in order to get the WTO applied tariff rates.
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Additionally, according to the notification, Thailand committed tariff rates for Barley other than seed under the tariff code 1003.90.00 at 27%, for Other cereals under the tariff code 1008.90.00 at 27%, for Toothpicks of bamboo under the tariff code 4421.91.60 at 20% and for Toothpicks of wood other than bamboo under the tariff code 4421.99.80 at 20%, all in ad valorem rate. When concerned products imported from WTO member's country, the rate as mentioned above will be applied.
Page 61, Paragraph 3.47
The legislation on anti-dumping and countervailing measures – the Anti-Dumping and Countervailing Act, B.E. 2542 (1999) - was amended on 22 May 2019, and the amendment came into effect on 18 November 2019. The authorities indicated that they will notify the WTO once the translation into English is completed. The authorities state that the amendment clarifies certain issues, including anti-circumvention provisions.
Question 4
In the past Thailand notified the changes in the relevant law within three months. Could Thailand please explain the reason why changes in the Anti-Dumping and Countervailing Act, B.E. 2542 (1999) have not been notified to the WTO within the same timeframe, while almost a year has passed since the amendment?
Answer
Still in the process and will be notified to the WTO when the translation into English is completed.
Page 61, Paragraph 3.49
Between 1995 and end-2019, Thailand initiated 84 anti-dumping cases, including 23 after 2015.22 It notified to the WTO that, as at 30 June 2020, 43 anti-dumping measures in the form of duties were in force on 12 types of products: 10 types of steel or steel alloys; citric acid; and inner tubes of rubber for motorcycles.23 Thirty of these measures were extensions of existing measures beyond their sunset period. Actions mostly affected products originating in China (11), Chinese Taipei (5), the Republic of Korea (5), and Viet Nam (5). During the review period, Thailand terminated its anti-dumping measures on:
Question 5
As of 30 June 2020, 43 anti-dumping measures in the form of duties were in force, 30 of these measures were extensions of existing measures beyond their sunset period. The extended measures account for about 70% of the total measures and it seems to be considerably high. Could Thailand please explain in more detail what rationale and criteria the Thai investigating authorities uses in the AD review process?
Answer
If the expiry of the duty would be likely to lead to continuation or recurrence of dumping, the measures would be extended. Thai investigating authorities conduct the AD review process in compliance with Article 11.4 of the Anti-Dumping Agreement (ADA).
Page 64, Paragraph 3.158
The Department of Industrial Technology under the MOEA provides funding opportunities for domestic and foreign companies to carry out R&D activities under the Industrial Technology Development Programme. These include grants to cover up to 50% of R&D project expenses with a cap of NT$30 million, for a maximum of three years. Enterprises are encouraged to set up R&D centres through two incentive programmes; grants are provided to cover personnel-related costs in relation to the R&D centre operations. Foreign applications for grants to support setting up R&D centres will no longer be accepted after 1 May 2014.
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Question 6
Could Thailand please explain why foreign applications for grants have been excluded from the Industrial Technology Development Programme since May 2014?
Answer
This referred paragraph is not in Thailand's TPR. It is likely to be Chinese Taipei's.
Page 82, Paragraph 3.140
3.140. Since the previous Review, there have been no major changes to the institutional framework for standards and conformity assessment. The Thai Industrial Standards Institute (TISI), under the Ministry of Industry, was established in 1969 under the Industrial Product Standards Act B.E. 2511 (1968). It is responsible for developing national standards (both voluntary and compulsory), product certification and registration, and participating in the standardization activities both at regional and international levels. In addition to the TISI, other bodies responsible for different aspects of technical regulations and standards are: [...]
Question 7
Could Thailand please provide more detailed information on product certification program and relevant laws with respect to (i) certification by FDA of medical equipment and (ii) certification by NBTC of wireless communication equipment? For the past few years, there have been several cases repeatedly reported to the Korean government by its exporters that (i) the certification process by Thai FDA takes substantially longer period of time ranging from three months to three years; and (ii) while NBTC's certification is required for importation to Thailand of wireless communication equipment, the same process causes excessive costs and complexities (particularly, including on-site verification by Thai government staff to Korea's production facilities) that it has become virtually impossible for Korean manufacturers to export the said items to Thailand.
Answer
(i) The Food and Drug Administration has clearly stipulated the procedure and registration timeline for medical devices. Please see the website: https://bit.ly/3lbNH1Y (available only in Thai).
(ii) Telecommunications Equipment under the NBTC regulation (NBTC)
All suppliers of telecommunications equipment in Thailand are obliged to conformity assessment in order to ensure that technical characteristics of telecommunications equipment conform to the NBTC technical standards. The NBTC standard requirements are based on the International Organization for Standardization and the International Electrotechnical Commission (ISO/IEC) and WTO agreement on Technical Barrier to Trade (TBT). The main purposes of conformity assessment are to protect consumers against harmful or unsafe products as well as avoid radio frequency interference.
The telecommunications equipment that requires NBTC certificate of conformity is as prescribed in section 4 of the Radiocommunications Act B.E. 2498 (1955) and section 70 of the Operation of the Sound Broadcasting Service and the Television Broadcasting Service Act B.E. 2551 (2008).
However, there is some equipment that the suppliers are not required to have a license for manufacture, import, export, sale or install which are listed in Notification of the NBTC on Exemption of License for Radiocommunication Equipment and Radio Communication Station under Radiocommunications Act B.E. 2498 (1955) and Notification of the NBTC on Criteria for the General Use of Frequency and Radiocommunication Equipment.
Conformity Assessment
For the protection of consumers and safety concern, The NBTC certificate of conformity is prerequisite for the application of import license. The NBTC has published several notifications on technical standards as well as criteria and procedures for conformity assessment as follows:
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- Notification of the NBTC on Conformity Assessment of Radiocommunication Equipment and Devices in Sound and Television Broadcasting Services
- Notification of the NBTC on Conformity Assessment of Telecommunications Equipment
- Notification of the NBTC on Conformity Assessment Procedures of Telecommunications Equipment Done by the Office of NBTC
- Notification of the NBTC on Rules, Procedures, and Conditions on Establishing Testing Laboratory (in Thailand) for Telecommunications Equipment
- Notification of the NBTC on Rules for Recognizing Telecommunications Equipment Test Report from Foreign Laboratory.
The procedures of conformity assessment are different depending on the classes of telecommunications equipment as portrayed in the diagram (please see next page).
The conformity assessment of the technical standard for telecommunications equipment of the NBTC is the universal practice which has no intricacy and difficulty. It conforms to the principle of ISO/IEC 17025 and the testing report is certified by the accredited testing laboratory. The timeframe of certification process conducted by the Office of NBTC takes five working days and the fee costs 5,000 baht (VAT not included). It takes three working days for the registration of telecommunications equipment (registered with the Office of NBTC), with the fee of 1,000 baht (Vat not included). In this regard, both the procedure and the fee are not burdensome for the suppliers.
The guide to the Conformity Assessment of Telecommunications Equipment and other notifications in English are available at http://standard.nbtc.go.th.
Import License
The suppliers of telecommunications equipment and devices, including those which are not listed in the abovementioned NBTC notifications, are obliged to apply for the import license granted by the NBTC in accordance with laws and regulations as follows:
- Radiocommunications Act B.E. 2498 (1955)
- Notification of the NBTC on the Importation of Radiocommunication Equipment
- Notification of the NBTC on the Sale of Radiocommunication Equipment
- Notification of the NBTC on Criteria and Procedures for Granting a Permit to Manufacture, Import, Sell, or Offer for Sale or Install Receiver, Apparatus or Device Enabled for Receiving or Decoding Signals to Receive Programs of the Subscription Broadcasting Business (No. 2).
Notification of the NBTC on Manufacturing, Importing, Selling or Offering for Sale or Installing Internet TV Box.
The procedures of application for the import license take not over 38 working days. Fees for the application of import license are prescribed in the abovementioned notifications. For instance, the fee for the import license of receiver, apparatus or device for receiving or decoding signals to receive programs of the subscription broadcasting business costs 1 baht per 1 device (VAT not included). The fee for the import license of radiocommunication equipment costs 200 baht (VAT not included). The fee for the sale license of radiocommunication equipment costs 1,000 baht (VAT not included).
It is noted that the NBTC does not conduct any on-site verification for conformity assessment of technical standard or granting import license of telecommunications equipment. The NBTC has no such activities or procedures as the deployment of its staffs to verify factories, or telecommunications equipment manufacturing facilities in either manufacturing sources or abroad. Hence, no fee shall be collected for inspecting factories or manufacturing facilities of telecommunications equipment.
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Nevertheless, the NBTC officers will request testing report from the manufacturers for the verification of technical standards.
Moreover, the NBTC has already published all notifications and public manuals regarding the importation of telecommunications equipment on website https://www.nbtc.go.th/ to clearly demonstrate the procedures and criteria for suppliers.
Therefore, the NBTC procedures, criteria, timeframes and fees for both conformity assessment of technical standard and application for the import license of telecommunications equipment are reasonable, transparent and publicly available on the NBTC website. Suppliers can also contact NBTC officers for more information or complain if they experience difficulty via [email protected].
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Page 136, Paragraph 4.97
Under the FSMP III, the Bank of Thailand has implemented a number of measures and policy initiatives, leveraging new technologies and adapting the regulatory framework in order to build an enabling and more inclusive FinTech banking system. Some of the main measures include: amending IT regulations and guidelines to enhance the security of mobile banking services; formulating the Payment Systems Roadmap Phase 4 (2019-2021) to promote digital payments; adopting regulations on person-to-person lending platforms to increase access to funding for individuals and businesses; expanding the scope of the Consumer Debt Relief Program to include defaults on credit card debts, revolving loans and unsecured personal loans; revising the regulation on supervised personal loans, to allow the use of alternative information in assessing repayment capability to enhance the financial access of low-income individuals at a reasonable price; promoting the use of basic banking accounts; adopting a standardized QR code for domestic and cross-border e-payments; developing the electronic authentication infrastructure through the National Digital Identity platform; and setting up a regulatory framework on identification and authentication systems.45 In addition, progress has been made towards ASEAN financial integration (Section 4.5.1.1.2).
Page 136, Paragraph 4.97
Under the FSMP III, the Bank of Thailand has implemented a number of measures and policy initiatives, leveraging new technologies and adapting the regulatory framework in order to build an enabling and more inclusive FinTech banking system. Some of the main measures include: amending IT regulations and guidelines to enhance the security of mobile banking services; formulating the Payment Systems Roadmap Phase 4 (2019-2021) to promote digital payments; adopting regulations on person-to-person lending platforms to increase access to funding for individuals and businesses; expanding the scope of the Consumer Debt Relief Program to include defaults on credit card debts, revolving loans and unsecured personal loans; revising the regulation on supervised personal loans, to allow the use of alternative information in assessing repayment capability to enhance the financial access of low-income individuals at a reasonable price; promoting the use of basic banking accounts; adopting a standardized QR code for domestic and cross-border e-payments; developing the electronic authentication infrastructure through the National Digital Identity platform; and setting up a regulatory framework on identification and authentication systems.45 In addition, progress has been made towards ASEAN financial integration (Section 4.5.1.1.2).
Question 8
Thailand is actively studying ways to incorporate digital technology in the financial sector. It successfully experimented a wholesale Central Bank Digital Currency (CBDC) early this year and it is currently in the process of conducting another study to integrate CBDC with business' platform. Is Thailand also considering to extend the CBDC to private users (a retail CBDC)? How is Thailand dealing with privacy in CBDC? Is it giving anonymity vouchers for example?
Answer
Currently, the BOT has been conducting a study and developing a CBDC proof-of-concept prototype for corporates. However, CBDC for retail individuals has also been in our interest, as part of our strategy to enhance readiness for financial services and businesses rapidly entering the digital age. Whether the BOT should issue a retail CBDC needs to be extensively discussed among stakeholders, as such a decision could pose a potential risk to financial stability and even change Thailand's financial landscape. Risks and impacts from retail CBDC issuance must first be clearly understood and weighed against opportunities. Moreover, the BOT will need to prepare appropriate policy responses to mitigate such risks and impacts.
Regarding privacy requirements around CBDC, we realize that it is one of the key issues for retail CBDC. However, we cannot give a clear answer yet whether transactions done with retail CBDC should be kept private and to what extent. The key consideration will be the trade-off between popularity and illicit activities. We believe that more privacy tends to be preferred among users, on the other hand, it may have unintended consequences in encouraging more illegal transactions. Regarding technical aspects, we have been exploring possibilities on the degree of privacy for each technology for retail CBDC issuance eg. Blockchain or centralized based technology, and we will need
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- 174 - to find an optimal point by taking other technical issues into account (scalability, performance, security and etc.)
Question 9
Another question concerns cross-border e-payment. Could Thailand elaborate on the status of the standardized QR code adoption negotiations with other ASEAN central banks?
Answer
For Thailand, the standardized Thai QR payment has been introduced in since late-2017, which is in line with international standards (EMVCo). Currently, most of countries in ASEAN have their own standardized QR Code as well or are developing such kind of code. These standards enable interoperability among countries in ASEAN and are the basis of several cross-border e-payment linkages.
OTHER QUESTIONS
Question 1
As there was tightening of OIC regulations, only a Fellow of the Society of Actuaries (FSA) has been allowed to become a chief actuary since 2020. Under the regulations, foreign insurance companies, which do not have a FSA, have difficulty in doing their business as they need to bear the costs of designing a FSA of an external agency each tine when they develop new products.
In China, it is possible for Korean actuaries to become a chief actuary when they pass an exam regarding the regulations of the Chinese insurance law. Therefore, we ask you to amend the regulations so that Korean actuaries can serve as a chief actuary in Thailand.
Answer
Foreigners can become Chief Actuary in Thailand. There is no restriction for chief actuary needs to be fellow of the Society of Actuaries (FSA) under OIC regulations. OIC requires licensed actuary to certify actuarial report annually. The license is issued by OIC and must be renewed every two years. Only Life licensed actuaries are required to be a fellow of the Society of Actuaries of Thailand (SOAT).
To be a fellow of SOAT, the person is a Fellow of one of the Recognized Actuarial Associations which are full members of the International Actuarial Association (IAA).
The Society recognizes the following actuarial associations principally for the purpose of admission into the Society of Actuaries of Thailand:
1) Institute and Faculty of Actuaries, UK
2) Society of Actuaries, United States of America
3) Institute of Actuaries of Australia
4) Canadian Institute of Actuaries
5) Casualty Actuarial Society, United States of America.
SOAT can consider others actuarial associations approved by SOAT's Board.
Question 2
Foreign securities companies which operate their business in Thailand are subject to frequent audits by the Securities and Exchange Commission (SEC). However, lack of notices or guidelines makes it difficult for the companies to prepare for the audits. So, it would be helpful, if prior notice or audit guidelines are provided to the companies.
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Answer
The inspection in Thailand consists of periodic and non-periodic basis. Almost all of them are conducted on an announced basis which the SEC will send the regulated entity (asset management companay/mutual fund supervisor/securities company) a letter notifying it of the inspection 10-15 working days prior to the inspection. The letter containing a request list that identifies certain information or documents together with the SEC's expectation for asking of those information or documents.
We also conducted training course for compliance officers, fund managers, and related personnels which share the deficiencies that we found from inspection. In addition, the inspection report on regulated entity also disclose on SEC website.
Question 3
When a foreign financial institution plans to go public, it is required to appoint a Thais who has experience in accounting for more than 10 years as the Chief Financial Officer (CFO) by the SEC. We hope that the authorities ease the requirements so that either an employee from the headquarters in Korea with more than 10 years of accounting experience or a Korean expert can be appointed as the CFO.
Answer
The SEC does not have specific requirements for appointment of CFO of foreign financial institutions. The SEC current requirements for CFO of listed and IPO companies are not related to nationality, but related to education qualification, work experience and an orientation/CPD courses in accounting knowledge. The only requirement with minimum number of years is the work experience with the following details:
Work experiences:
- Having work experience in accounting/finance fields for at least three years during the last five years or having work experience in any fields, which are relevant and beneficial to their role as a CFO, for at least five years during the last seven years before holding a position as the company's CFO
- Holding a position as a CFO in the company for at least one year before filing application with the SEC (Only for IPO companies).
Question 4
Some member's financial companies have trouble in raising finance to meet Regulations on the establishment of foreign financial institutions in Thailand. Therefore, Is there any possibilities to ease regulations for reducing difficulty to other member's financial companies to establish local companies or branch?
Answer
In establishing a foreign bank branch or a subsidiary in Thailand, minimum capital requirement is one of the requirements that the applicants are required to comply with. The required amount of capital allows the licensed institution to expand its asset, absorb both expected and unexpected losses, as well as ensure the bank's competitiveness in Thailand.
The most recent application for new foreign subsidiaries in 2013 required the minimum capital of 20 billion baht. The requirement has been set to select foreign commercial banks with financial strengths and has reflected a commitment for operating business in Thailand in the long term. The amount of required capital in 2013 was equivalent to a medium-sized bank in Thailand. This was in line with one of the objectives of licensing in 2013 that aimed to promote domestic competition.
However, the Bank of Thailand also currently focuses more on reciprocal market access through bilateral negotiations. This could also include flexibility on the minimum capital requirement of both
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Question 5
The mandatory to use more than 90% local contents in a Thailand Public Construction Project makes it difficult for other member's companies to participate in the bidding. Also, there is a possibility that this measurement is being used as non-tariff barriers. Could Thailand please specifically explain the legal basis for this measurement?
Answer
Thailand has drafted the government procurement ministerial regulation to support local steel and related construction industries in government construction project. The draft states that 60% of construction materials of the project has to use local materials of which 90% of construction steel must be local steel. This measure uses to support local construction industries not being use as non-tariff barrier. However, Thailand is not a member of GPA.
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MALAYSIA
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Page 36
2.3.1 WTO
2.15. Thailand is a founding Member of the WTO, and participated in the post-Uruguay Round negotiations on telecommunications and financial services. It became an Observer to the WTO Committee on Government Procurement in June 2015. In 2016, it accepted the Protocol Amending the TRIPS Agreement, and notified to the WTO its Least-Developed Country Services Waiver, granting preferential treatment to services and services suppliers of LDCs. As a party to the WTO's 1996 Information Technology Agreement (ITA), Thailand participated in the negotiations to expand the ITA's product coverage, finalized in mid-201511, and implemented the tariffs commitments under the ITA expansion on 1 July 2016. Thailand ratified the Protocol concerning the Trade Facilitation Agreement (TFA) on 5 October 2015, and notified most of its commitments (over 90%) in Category A (i.e. implemented upon entry into force of the TFA) and the remaining commitments in Category B (i.e. to be fully implemented by 2024). The TFA entered into force on 22 February 2017.
Question
Would Thailand please elaborate her progress on the implementation of the remaining commitments under Category B of the Trade Facilitation Agreement?
Answer
Thailand has completed the implementation of the TFA provisions related to all customs works. This accounts to 97.1% of the implementation of the TFA, with only 6 chapters remained under Article 5 (Other measures to Enhance Impartiality, Non-Discrimination and Transparency) and Article 11 (Freedom of Transit), which is expected to be completed within the definitive date (2022 and 2024).
Page 52
3.1.2.2 Tariff bindings
3.22. In the WTO, Thailand bound 76.3% of its tariff lines at the HS eight-digit level: 100% binding on agricultural products (WTO definition), and 73% on non-agricultural products. Seven tariff lines carry specific duties, 1,904 carry alternate duties, and the rest carry ad valorem rates. The rates of tariff lines carrying ad valorem rates range from zero to 226% (raw silk) for agricultural products, and from zero to 80% (motor vehicles) for non-agricultural products. When AVEs are included, the overall average bound tariff is 31.3%; the average bound tariff for agricultural products is 41.7%, and that for non-agricultural products is 29.2%. 2,557 tariff lines remain unbound.
Question
According to para 3.22, there are 2,557 tariff lines remain unbound. Could Thailand indicate whether there is any plan to review the unbound tariffs in future?
Answer
Thailand revises its tariff structure on a regular basis and the tariff rates have been reduced according to the country's economic situation. Should there be any circumstances such as changes in economics, trade or investment which make tariff reductions deem appropriate or necessary, the tariff structure will be revised accordingly.
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Table 3.6
Table 1 Products prohibited from importation, 2020
Products HS code (2017) Rationale Logs and sawn wood from teak trees, rubber trees Various To prevent illegal or forbidden trees from the borders of the Tak and logging and conserve Kanchanaburi provinces natural resources
Question
1. Will it prevent the export of timber and timber products from Malaysia to Thailand?
2. Does it require additional procedures for that purpose? Please elaborate.
Answer
- The scope of this measure does not include the imported timber and timber products from Malaysia.
- There is no additional procedure for importing timber and timber product from Malaysia to Thailand under the Ministry of Commerce regulation if such product are not imported along the border specify in the Notification of the Ministry of Commerce on Importation of Goods into the Kingdom of Thailand (No. 92) B.E. 2535 (1992).
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Thailand-Plus
3.138. In September 2019, Thailand introduced "Thailand Plus", a stimulus package aimed at attracting foreign businesses to relocate and to expedite large-scale investment, and at strengthening workforce development. The new measures include an enhanced incentive package for projects worth at least THB 1 billion of investment, additional incentives for companies engaged in human resource development, and revised incentives to encourage corporations to set up science, technology, engineering, and mathematics (STEM) education or vocational training institutions.
Question
Could Thailand elaborate on the types of additional incentives that are provided for corporations to set up STEM and TVET institutions?
Answer
Additional incentives for STEM include additional corporate income tax.
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3.3.5.4 Electronic government procurement
3.190. Thailand introduced an electronic government procurement system (e-GP system) in April 2010. The Comptroller General's Department is responsible for the development and promotion of the system. The system started with pilot projects covering a limited number of procurement entities and procurement methods, and was gradually extended to other procurement entities, with the aim of including all government procurement contracts. During the review period, the e-GP system concluded its Phase 3 projects and entered Phase 4 projects on 24 August 2017. Phase 4 projects are aimed at bringing the system in line with the new Act and, in particular, enabling the selection method and the specific method in the system. According to the authorities, the e-GP system helped to save 8.26% of the budget for the completed procurements.
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Question
Since the selection method allows for procurement under extra ordinary circumstances, how will the Phase 4 of the e-GP System successfully reflect this and what progress has been made thus far?
Answer
E-GP System is the main government procurement system in Thailand. It allows government entities to publish invitation notices and awarded contracts notices. However, suppliers in selection method cannot submit procurement proposals via e-GP system.
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3.3.7.5 Patents
3.240. Over the review period, the DIP made significant efforts to improve efficiency and timely service by improving the allocation of existing resources. It more than tripled the number of patent examiners during the review period (from 30 in 2014 to 99 in 2018), and intensified the training provided to examiners in order to allow them to handle more complex applications, with the particular aim of reducing the lengthy pendency and examination time. Additional examiners helped decrease the patent application backlog by 20% in 2018. Since then, the examination of patent applications has been shortened from an average of 10 years, to an average of 6-8 years.
Questions
Does the Thai Patent Office consult the Thailand FDA on patents application concerning pharmaceuticals?
Answer
There is no requirement that the Thai FDA has to consult with the Thai Patent Office with regard to the patent applications concerning pharmaceuticals. However, the Thai FDA, if wishes, can do so.
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3.3.7.5 Patents
3.243. The situation regarding compulsory licences remained unchanged during the review period. Of the compulsory licences for government use granted for seven medicines in 2006-08 by the Ministry of Public Health, only one remains in use: the licence on a combined formulation of Lopinavir and Ritonavir, which covers up to 250,000 patients entitled to essential medicines under three national health security schemes, and is due to expire in 2021, after an extension in 2010. The other licences have either expired, or are effective only where an essential need for these medicines exist.
Questions
What are the circumstances that allow for the application of compulsory licenses (CL) for pharmaceuticals?
Does the Thai Patents Act narrow the scope to only cases of "extreme urgency" or does it also take into account the aspect of 'affordability of medicines and what is the benchmark (i.e. based on Gross Domestic Product (GDP) or threshold values)?
Is there a specific duration that a CL can be in force for pharmaceuticals and if so, is there a limit to the number of times the duration of a CL can be extended?
Answers
In order to carry out any service for public consumption or which is of vital importance to the defense of the country or for the preservation or realization of natural resources or the environment or to
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- 180 - prevent or relieve a severe shortage of food, drugs or other consumption items or for any other public service, any ministry, bureau or department of the government may, by themselves or through others, exercise any right under Section 36 (patentee's rights) by paying a royalty to the patentee or his exclusive licensee and shall notify the patentee in writing without delay.
During a state of war or emergency, the Prime Minister, with the approval of the Cabinet, shall have the power to issue an order to exercise any right under any patent necessary for the defense and security of the country by paying a fair remuneration to the patentee and shall notify the patentee in writing without delay. (Section 52 of the Patent Act)
It shall be noted that the scope and duration of the compulsory license shall not be more than necessary under the said circumstances and aimed predominantly for the supply of the domestic market. (Section 50 of the Patent Act)
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4.4 Manufacturing
4.85. In 2019, the Office of Industrial Economics, under the Ministry of Industry, launched an Action Plan on Industrial Development (2019-37), aimed at "moving towards a wisdom-driven industry that connects with global economy". The main objectives include: enhancing Thailand's industrial competitiveness in the world; generating more income and creating more jobs, and ensuring the continuity and stability of economic growth; and using industrial development as a key engine to transform Thailand into a high-income, developed country. The authorities stated that the Plan sets specific targets in terms of minimum annual growth rates from 2019 to 2037, for the following indicators: industrial sector's GDP no less than 4.5%; rate of investment in the industrial sector no less than 10%; export value no less than 8%; and total factor productivity no less than 2%.
4.86. To reach these targets, the Plan identified five subsectors, and mapped out three guidelines focusing on their development.
4.87. The five subsectors are: (i) the agricultural and bio-technology subsector, such as the food and beverage industry, the agricultural processing industry, and bio-industry; (ii) the health, wellness and bio-med subsector, such as the pharmaceutical and herb industry, medical devices, and the medical service industry; (iii) the smart device, robotics, and mechatronics subsector, such as the robotics, aerospace, automotive and auto parts industries; (iv) the digital industry subsector, such as data centre cloud computing and system integration (SI) services; and (v) the creative industry, culture and high value services subsector.
Question
Appreciate if Thailand can share the Action Plan on Industrial Development for the local pharmaceutical manufacturing industry. Is this plan available online?
Answer
The industrial sectors under the action plan are the target industries that the Ministry of Industry considered as the important engines of economic growth. They consist of five groups namely; (1) Agriculture, Food processing and Biotechnology, (2) Public Health, Health, and Medical Technology, (3) Electronically Controlled Mechanical, Smart Devices, and Robots e.g. automotive and parts, electrical appliances and telecommunication equipment, robots, and aircraft, (4) Digital Groups e.g. internet technology, connected devices, artificial intelligence, software development, e-commerce, and data center cloud computing, and (5) Creative Industry Capital, Culture and High Value Services e.g. tourism, fashion industry, lifestyle industry, creative media and animation industry. Instead of utilizing import substitution or export support measures. The Ministry of Industry's measures focus on building a necessary infrastructure and creating good business environment to promote investment in the abovementioned industries in order to reach the stated goal.
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Page 135
4.93. The Government launched Thailand 4.0, which is an economic model aimed at driving economic growth through innovation. To promote industrial restructuring in accordance with Thailand 4.0, the BOI has been promoting investment in targeted sectors and targeted technologies, including those related to the BCG model. Against this background, a range of incentives are provided to the manufacturing sector in the form of, inter alia, corporate income tax holidays and import tariff exemptions under the BOI's investment promotion policy. Several tax and non-tax incentives are also provided to businesses located in the EEC, the customs free zones, and the free zones under the Industrial Estate Authority of Thailand. In addition, several incentives to attract FDI are offered under the Thailand-Plus package (Section 3.3.1). In September 2019, the BOI launched a wide range of investment promotion measures, such as additional tax incentives to education and vocational training institutes specializing in science, technology, engineering, and mathematics, with a view to enhancing human resource development. The authorities stated that foreign and Thai investors are granted the same incentives for eligible activities.
Question
How was the response and interest of the private sector and investors alike on the additional tax incentives promotion measures by the Government of Thailand to develop human resource, specialising in STEM and innovation?
Answer
In the investment policy impact assessment report (2018)* shows that Investment incentive schemes under the 7-year strategic investment promotion policy (2015-2021) contributed 418 billion baht to Thailand's GDP growth. The scheme is streamlining the ongoing transformation of Thailand's economic structure towards an advanced economy driven by science and technology.
The policy has contributed positively to Thailand's economy. In the years 2015 and 2016, the investment incentive scheme boosted real GDP by 3.31%, private consumption by 1.59%, private investment by 6.03%, exports by 4.29%, and employment by 0.46% on average.
The report also indicates that promoted projects have high added-value of revenue. In the years 2015-2017, the added-value of revenue of promoted projects was 40.28% on average. The service sector experienced the largest expansion in all industries with a growth of 64.47% in value-added revenues, followed by the industrial sector with 36.09% and the agricultural and agricultural processing sector with 26.75%.
New measures launched in 2019 have not been evaluated yet.
* Policy evaluation is conducted by third party for every two years. The investment policy assessment report of 2018 was first released in 2019 and the next report is expected to be published in 2021.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
Page 8
3.1.2.1 Ease of doing business
3.16. Department of Business Development (DBD) has undertaken several activities in order to put force greater ease of doing business for foreign investors as follows:
(1) Launching the e-Registration System and currently working on a project to upgrade the system with the objective to develop its capacity.
(2) Improving the capacity of company name reservation system by using fully functional AI technology in considering the request to reserve a company name.
(3) Launching a single-service platform by combining the incorporation process with Social Security registration.
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(4) Issuing Ministerial Regulations to remove service businesses under the Foreign Business Act, B.E. 2542 (1999) to exempt business from the foreign business license requirement in order to facilitate business operations and promote trade and investment in Thailand.
Question
Appreciate if Thailand could indicate the presence of one-stop center to assist or facilitate periodic submission and reduce redundancy in relation to regulatory requirements for the existing local manufacturing industries.
Answer
As part of its commitment to support the transition into e-Government, the DBD has continued to develop new, innovative public services that are more convenient, faster and cost-saving for all service recipients including commercial and non-commercial organizations as well as individuals alike. One of the key tasks within the responsibility of DBD which plays part in bringing about trust and confidence in Thai juristic persons' transactions is to provide a range of services in relation to the issuing of certificates and certifying copies of original, official business registration documents. DBD services are already moving away from manual operation to full-scale electronic-based system. Use of e-Certificate files as well as the electronically submitted applications for certificates and the registrar's e-Signature.
Became available for the registration of partnerships and limited companies since 18 April 2017, the service feature of paperless e-Registration system is fully operable online and supports the whole process of juristic person registration, including the name reservation, filling out and submitting the application forms, accepting and approving the registration, paying fees, and filing applications for juristic person certificates. To put it simply, the e-Registration system makes everything about registration easier for business operators because it eliminates the redundant steps formerly required for filing the applications, allows more use of paperless forms and documents, and saves time and costs typically arising from walk-in services. The e-Registration also enhances the overall quality of services in terms of security, reliability, efficiency, standardization that meets global level, and rising acceptance in integrated public services.
DBD also developed DBD e-Filing System to improve the accountability and transparency of business financial data, by providing the open data exchange standard for business reporting to public service (DBD Data warehouse). This system makes a task easier and more efficient than traditional method to exchange and share financial data on the real time, as well as, saves cost and time for public sector and business society.
Moreover, DBD has been to a great degree employing advanced information technology in facilitating all-round services rendered to the business sector. One of the key tasks within the responsibility of DBD which plays part in bringing about trust and confidence in Thai juristic persons' transactions is to provide a range of services in relation to the issuing of certificates and certifying copies of original, official business registration documents.
Contacting Address
Business Development Office Region 1 (Pinklao): Thanalongkorn Tower, 14th Floor Borommaratchachonnani Road, Bangbamru, Bangplat, Bangkok 10700
Business Development Office Region 2 (Phaholyothin): 78/13 Rama VI (Pradiphat Intersection) Phayathai, Bangkok 10400
Business Development Office Region 3 (Ratchadaphisek): Preecha Complex Building (C 2), 3rd Floor Ratchadaphisek Road, Huai Khwang, Bangkok 10310
Business Development Office Region 4 (Surawong): Amigo Tower, Si Phraya Road, Mahapruek, Bangrak, Bangkok 10500
Business Development Office Region 5 (Thanya Park Shopping Center Building): Thanya Park Building, 735/1-8 Building A, 2nd Floor, Srinakarin Road, Suanluang, Suanluang, Bangkok 10250
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Business Development Office Region 6 (The Government Complex): Ratthaprasasanabhakiti Building, 1st Floor, The Government Complex, Chaeng Wattana Road, Thung Song Hong, Lak-si, Bangkok 10210
Central Business Registration: Department of Business Development, 4th Floor, Nonthaburi Road, Mueang Nonthaburi, Nonthaburi 11000
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3.2.5.3 Tourism
3.67. In realizing the vision of Thailand Tourism 2036, the nation needs to devise stepping stones to lay out the development path to reach the ambitious goal. The 5-year objectives and targets have been set to portray what Thailand could realistically achieve in the next five years. The overarching strategic objectives and targets over the next five years focus on improving the overall quality and capabilities of Thailand's tourism industry and supporting sustainable growth that leverage the great value of Thainess. The challenge now lies in the ability to create greater economic benefits from the industry, while ensuring the sustainability of the nation's tourism assets.
Question
Taking into account the development surrounding of COVID-19, is there any possibilities of revising these objectives and targets?
Answer
Thailand has not revised the Second National Tourism Development Plan as the plan was initiated before the pandemic and now nearing its validity. Nevertheless, Thailand has taken measures to cope with the situation of the COVID-19 pandemic.
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3.2.8 Government procurement
3.90. In 2017 Public Procurement and Supplies Administration Act has been enacted in Thailand. The main objective of this Act is to promote transparency, accountability, efficiency, effectiveness, and value of money which lead to reliability in Thai public procurement for all sectors in both national and international level. According to the Act, all government agencies must follow the procurement procedures, including State-owned Enterprises (SOEs), local administrations, and other Independent public organizations except the procurement by SOEs that directly involving commerce such as purchasing oil and gas of Petroleum Authority of Thailand.
Question
What percentage of Government procurement involve direct purchases by state owned enterprises?
Answer
From October 2018 – September 2019, the percentage of government procurement by state owned enterprises is 13.10%.
Question
In the case of direct purchases made by state owned enterprises, how does Thailand ensure transparency?
Answer
It is a mandatory that tender information must be published on the website. Moreover, Thailand has the project called Integrity Pact (IP) that has been used in government procurement in order to
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3.2.10 COVID-19 related policies and measures
3.96. Due to the COVID-19 outbreak, the Government has elevated the implementation of measures to the highest level by virtue of Section 5 of the Emergency Decree on Public Administration in Emergency Situations B.E. 2548 (2005) on 26 March B.E. 2563 (2020). Since March 2020, the Government has approved three phases of COVID-19 Relief Package to mitigate the economic impacts from the pandemic, focusing on economic stimulus package and healthcare spending.
3.97. Additionally, various measures related to trade and investment have been implemented temporarily as follows:
(1) Trade-related measures: (1) Tariff exemption for essential products, such as surgical masks, (2) Export prohibition of bird eggs to prevent the critical shortage, (3) Export restriction of surgical masks to ensure adequacy of the products, and (4) Exemption of conformity assessment for licensing to import for sale industrial products.
(2) ICT-related measures: (1) Providing high speed broadband internet for people, (2) Offering Special tariff and payment terms for telecommunication services, and (3) Establishing cloud Infrastructure to support government applications/IT systems needed during COVID-19 outbreak.
(3) Services-related measures: (1) Insurance, such as premium refunds and premium discounts, and (2) Security and Exchange, such as notifying the business operators to activate Business Continuity Management (BCM) and Business Continuity Plan (BCP), and postponement of financial statement submission for companies that are affected by COVID-19.
(4) Investment-related measures: such as: (1) Extension of the application deadline for corporate income tax exemption privileges, (2) Launching of online document submission service (e-submission), and (3) Launching of SMART Visa Online Clinic.
Question
Appreciate if Thailand could indicate if all policies and measures taken to support growth and mitigate impact of COVID-19 to the local manufacturing industries (including tax exemptions that are provided) are available online?
Answer
The Thai Cabinet has set up a COVID-19 measures information center to integrate information from all government agencies as well as to publish public relations media regarding COVID-19 prevention as well as to hear requests or complaints from the public. The information about this center can be found on Thai government website: www.thaigov.go.th/news.
Cabinet resolutions and press releases of multiple measures are available online. Where the measures require legislations or regulations to be issued, or tax codes to be amended, the documents are also available online. Examples are the Emergency Decree on the Provision of Financial Assistance for Entrepreneurs Affected by COVID-19 Pandemic, B.E. 2563 (2020), the Emergency Decree Authorizing the Ministry of Finance to Raise Loans to Solve Problems, to Remedy, and Restore the Economy and Society as Affected by the Coronavirus Disease Pandemic, B.E. 2563 (2020), the Emergency Decree on the Maintenance of Stability of the Financial System and Economic Security of the Country, B.E. 2563 (2020), and the Royal Decree on Exemptions from the Tax Codes for Interests Paid on Soft Loans Received by Businesses Directly or Indirectly Affect by COVID-19.
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MEXICO
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Párrafo 3.196, Página 109
No obstante, los sectores para los cuales existen disposiciones legislativas específicas en materia de competencia (por ejemplo, las telecomunicaciones y la energía) quedan excluidos del ámbito de aplicación de la nueva Ley. También se excluyen las administraciones de los gobiernos central, provinciales y locales, las cooperativas agrícolas y de otro tipo y las organizaciones sin fines de lucro.
Question
¿Estas exclusiones también se extienden a lo referente a la emisión de opiniones sobre los efectos en la competencia derivados de ajustes a programas, iniciativas legislativas u otras disposiciones jurídicas y administrativas realizadas en alguno de los tres niveles de gobierno?
[Do these exclusions also extend to the issuance of opinions on the effects on competition derived from adjustments to programs, legislative initiatives or other legal and administrative provisions made in any of the three levels of government?]
Answer
Even though Article 4 written that Competition Act B.E. 2017 should not apply for SOEs or other government agencies that they conduct their undertakings according to the law or resolutions of the Cabinet which are necessary for the benefit of maintaining national security, public interest, the interests of society, or the provision of public utilities, Article 17 (11) and (12) under the Act provide the commission powers to propose opinion and recommendations to the Minister and the Cabinet with regard to the government's policies on competition and also give recommendations to government agencies on rules, regulations, or orders which are obstacles to competition and causing obstruction, restriction, or reduction of competition, and that may result in unfairness between business operators. Thus, the exclusions do not extend to any issuances of the commission opinions on the effects of any competition issues.
Párrafo 3.20, Página 110
El presupuesto de la TCC y de la OTCC es independiente del presupuesto de cualquier otro organismo gubernamental. Está compuesto por el capital inicial aportado por el Gobierno, los ingresos derivados de la prestación de servicios y diversas operaciones, y las donaciones de países extranjeros u organizaciones internacionales. Si el presupuesto no cubre los costos operacionales, el Gobierno subvenciona a la TCC y a la OTCC. Todavía no se ha realizado una evaluación oficial del desempeño de la TCC y de la OTCC. Sin embargo, según las autoridades, su mayor independencia les ha permitido mejorar su desempeño. La OTCC es miembro de la Red Internacional de Competencia.
Questions
• ¿Qué países y organizaciones internacionales han donado recursos para la operación de la TCC y de la OTCC?
• ¿Cuáles son los mecanismos de cooperación internacional en cuyo marco se llevan a cabo las donaciones financieras para la operación de la TCC y de la OTCC?
• ¿Se considera que se puede ver comprometida la independencia operativa y decisoria de la autoridad de competencia en la medida en que deba recurrir a la subvención del gobierno central o a la prestación de servicios?
• ¿Cuánto tiempo se tiene previsto que el capital inicial aportado por el gobierno, financie la operación de la Oficina de la Comisión de la Competencia Comercial (OTCC)?
• ¿Cuáles son los criterios (solicitud de un monto específico, desempeño, monto mínimo de referencia, planes de trabajo u otros) para determinar el monto de asignación
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presupuestal por parte del gobierno a la OTCC, en caso que no pueda cubrir sus costos operacionales?
• ¿en qué medida esta asignación gubernamental puede afectar la independencia de la OTCC?
Answers
[What countries and international organizations have donated resources for the operation of TCC and OTCC?]
We do not get any resources donation from any countries or international organisation for the operation.
[What are the mechanism of international cooperation which financial donations are made for the operation of the TCC and the OTCC?]
OTCC and TCC do not get financial donations from international mechanism cooperation in cash, but we do get in kind.
[Is it considered that the operational and decision-making independence of the competition authority can be compromised as it has to resort to subsidies from the central government?]
We do not have such of that mechanism to compromise TCC's decision-making independency.
[How long is the initial capital provided by the government expected to finance the operation of the Office of the Trade Competition Commission (OTCC)?]
The OTCC is mostly funded by the annual budget allocated by the government since its establishment. The office has never received the initial capital to finance the operation.
[What are the criteria (request for a specific amount, performance, minimum reference amount, work plans or others) to determine the amount of budget allocation by the government to the OTCC, in case it cannot cover its operational costs?]
According to the Budget Procedures Act B.E. 2018, the OTCC as a budget receiving until must propose its action plans and budget expenditure plan, as well as a report on non-budget money to the director of Bureau of the Budget. According to Section 23, ensuring the accordance of the budget with national strategies, the national development plans, policies of the government, and mission of budget receiving units, with a view to putting forth budget-expenditure efficiency and cost effectiveness as well as achievement in public administration.
[To what extent can this government budget allocation affect the independence of the OTCC?]
The government budget allocation has limited effect to the independence of the office since the Trade Competition Act, B.E. 2560 (2017) has ensured the independence of the commission and the office and give the commission a power to issue regulations or rules regarding organisational structure, personnel management, budgeting finance, and property and other operations of the office. Moreover, the office is allowed by the law to be funded by other sources, including fees, compensation, service charge, or other income from the operation. The office is also allowed to receive, without any condition or commitment agreed that may affect the operation of the commission or the office, donated money and assets or subsidised money from a foreign country and international organisation.
Párrafos 3.201, Página 110
La TCC se encarga de dictar las normas y los reglamentos de aplicación de la nueva Ley. Esta establece también que la TCC tiene la obligación de escuchar las opiniones de las partes interesadas al redactar las normas y los reglamentos de aplicación.
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Question
En los años 2018 y 2019, la TCC ha introducido 16 normas y reglamentos relativos a procedimientos contra prácticas anticompetitivas y al control de concentraciones; al respecto y en vista de su participación en la Red Internacional de Competencia (ICN, por sus siglas en inglés) ¿De qué manera ha contribuido la participación de la TCC en la ICN para el diseño o mejora de estos instrumentos?
[In 2018 and 2019, the TCC has introduced 16 rules and regulations related to procedures against anti-competitive practices and merger control. In this regard and in view of your participation in the International Competition Network (ICN), in what way has TCC's participation in ICN contributed to the design or improvement of these instruments?]
Answer
The Trade Competition Commission (TCC) adopted and applied ICN's concepts and core principles of market definition, market structure, and the key topics of analyzing the market structures of products and services relating to the business operator which would like to conduct M&A.
In terms of the assessment of the impact on competition after the M&A, such assessment shall include significant information such as analyzing data, market concentration, entry and expansion, non-coordinated or unilateral effect, and coordinated effect. Such information are prescribed in the Announcements of Trade Competition Commission on the topic of Criteria, Procedures and Conditions in Requesting for the Permission and the Permission for Business Merging B.E. 2561 (2018).
Párrafos 3.202, Página 111
Question
¿En qué consiste la Notificación sobre Medidas de reglamentación de las fusiones en el sector de telecomunicaciones y radiodifusión, emitida por la NBTC en 2018?
[What is the Notification of the NBTC on Merger Regulatory Measures for Broadcasting and Telecommunications Business, issued by the NBTC in 2018?]
Answer
The NBTC notifications on merger regulatory measures in broadcasting and telecommunications services
Pursuant to the section 4 of Trade Competition Act B.E. 2560, this act shall not apply to businesses that are specifically regulated under other sectoral laws having jurisdiction over competition matters. Therefore, the competition-related issues in broadcasting and telecommunications services as well as the merger of such businesses shall be regulated by the National Broadcasting and Telecommunications Commission (NBTC). The NBTC enforced the merger regulatory measures as follows:
1. The NBTC Notification on Merger Regulatory Measures in Broadcasting and Television Business B.E. 2561 (2018)
This notification aims to alleviate the conditions of merger in broadcasting and television business. The broadcasting and television operators shall report the merger to the NBTC but they are not required to apply for the permission for merger. This notification aims at facilitating operators in running business, improving regulatory environment for technological convergence as well as promoting competitive market.
The merger can be divided into two cases:
1) General merger: prior to the merger, licensees shall report the merger to the Secretary General of the NBTC no less than 30 days as described in the notification.
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2) Conditioned merger: if such merger falls into the conditions described in clause 6-8 of the notification which are, for example, the merger whose value of assets exceeds the described amount, the merger of subsidiary companies and the stock purchasing that exceeds the described share of ownership, licensees shall report the outcome of merger to the Secretary General of the NBTC within seven days after the merger becomes effective.
Moreover, the impact on competition of market shall be evaluated in both cases through the evaluation of Herfindahl-Hirschman Index (HHI), as well as, the evaluation of post-merger licensees' behaviors that have impact on the market. The NBTC requires that the operator submit report and relevant documents of merger within seven days after such merger becomes effective.
2. The NBTC Notification on Merger Regulatory Measures in Telecommunications Business B.E. 2561 (2018)
Prior to the undertaking of merger, telecommunications operator shall notify Secretary General of the NBTC no less than 90 days if the merger falls into the following conditions:
- Forming new legal person or;
- Wholly or partially acquiring assets from other telecommunications licensees or;
- Making a purchase contract of ownership more than 25% share.
After conducting a merger, telecommunications operator shall notify Secretary General of the NBTC within seven days if the merger falls into the conditions related to the values of post-merger assets, annual revenue, the values of acquiring assets, the merger with subsidiary companies, and the purchasing stocks of ownerships as described in the notification.
If the merger results in the emergence of SMP (Significant Market Player) which is evaluated by HHI and relevant factors, the SMP is required to comply with the NBTC regulation in order to ensure competitive market
Question
Se menciona que la Ley de Competencia Comercial solo se aplica a los sectores de telecomunicaciones y radiodifusión cuando no se abordan en los reglamentos sectoriales las cuestiones pertinentes relacionadas con la competencia. ¿Se podrían compartir los casos en que esto haya sucedido y cómo es que se resolvieron los casos?
[It is mentioned that the Trade Competition Act only applies to these sectors when relevant competition issues are not addressed by the sectoral regulations. Could you share the cases where this happened and how the cases were resolved?]
Answer
As of now, there is no concrete case of applying the Trade Competition Act to relevant competition issues which are not addressed by the sectoral regulations. Nevertheless, there were four cases of the post-merger notification pursuant to Section 51 paragraph 1 of the Act proceeded by insurance business operators in 2020.
Normally, such insurance business operators are regulated by the Office of Insurance Commission (OIC) which is one of the six regulators in Thailand; however, the sectoral regulations of OIC do not prescribe the provisions of M&A in terms of competition in the insurance business sector. Therefore, the M&A of insurance businesses shall be in accordance with the Merger Control under the Trade Competition Act.
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Párrafos 3.204 y 3.205, Página 112
Question
¿La OTCC tiene atribuciones para seguir el procedimiento penal en caso de abuso de posición dominante y cárteles intrínsecamente nocivos? En caso negativo, ¿cuál es el procedimiento?
[Does the OTCC have powers to follow criminal proceedings in cases of abuse of dominant position and inherently harmful cartels? If not, what is the procedure for the cases?
Answer
OTCC has powers to follow criminal proceedings in cases of abuse of dominant position and inherently harmful cartels (section 50 & 54 of the Trade Competition Act B.E. 2560 (2017)).
Párrafo 3.206, Página 112
La Ley de 2017 establece un requisito de autorización previa a la fusión y un sistema de notificación posterior a la fusión. Toda fusión de empresas que pueda dar lugar a un monopolio o una posición dominante en el mercado debe ser autorizada por la TCC antes de efectuarse. Las fusiones que puedan reducir sustancialmente la competencia deben notificarse a la TCC dentro de los siete días siguientes a la fecha de la fusión.
Question
¿Las llamadas killer acquisitions caen dentro de los supuestos contemplados para el control ex post de concentraciones que puedan reducir sustancialmente la competencia?
[Do the "killer acquisitions" fall within the assumptions contemplated for ex post control of concentrations that can substantially reduce competition?]
Answer
Currently, the Trade Competition Commission (TCC) have not found the anti-competitive issue of killer acquisition in Thailand. However, if there are any conducts of M&A which will substantially reduce competition in the market, the OTCC will enforce the Trade Competition Act of 2017 against such anti-competitive M&As, particularly section 51 paragraph one prescribing that any business operator conducting a merger which may substantially reduce competition in a market under the criteria prescribed in the Commission' s notification shall notify the outcome of such merger to the Commission within seven days from the date of merging, as well as the Announcements of Trade Competition Commission on the topic of Criteria, Procedures and Conditions in Requesting for the Permission and the Permission for Business Merging B.E. 2561 (2018).
Cuadro 3.25, Página 113
Infracciones: Abuso de posición dominante en el mercado. Sanciones Penales: 1. Pena de prisión de dos años como máximo; o 2. Multa no superior al 10% de la cifra de negocios registrada en el año en que se cometió la infracción; o 3. Ambas.
Question
¿Se contempla solicitar la pena de prisión en todos los casos de abuso de posición dominante o sólo se busca esta sanción en la presencia de causales agravantes?; ¿En el segundo caso; cuáles son esas agravantes?
[Is the prison sentence applied in all cases of abuse of a dominant position or is this sanction only applied in the case of aggravating causes? In the second case; what are these aggravating factors?]
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Answer
The imprison sentence is not apply to all abuse of dominant cases, only applied in the case of aggravating cause. However, the sentence implementation will depend on the court's direction.
Párrafo 3.210, Página 113
La Ley de 2017 también prevé la posibilidad de utilizar medios privados para lograr la observancia. Concretamente, quienes sufran daños por infracciones previstas en la Ley tendrán derecho a entablar una demanda y a presentar una reclamación por daños y perjuicios. La Comisión de Protección del Consumidor, o cualquier asociación o fundación reconocida por la Comisión en virtud de la Ley de Protección del Consumidor, está facultada para iniciar reclamaciones por daños y perjuicios en nombre de los consumidores.
Question
• ¿Se prevé que la incorporación del derecho privado de acción disminuya los incentivos que encuentran los agentes económicos para colaborar en investigaciones a fin de obtener los beneficios de inmunidad y reducción de multas contemplados en la Ley?
• ¿Existe la posibilidad, de que la autoridad de competencia participe como amicus curiae en demandas civiles por daños generados por conductas anticompetitivas?
[Is it expected that the incorporation of the private right of action reduces the incentives that economic agents find to collaborate in investigations in order to obtain the benefits of immunity and reduction of fines contemplated in the Law?]
Answer
Usually a criminal offense, if there is damage, the private can sue for compensation. Even though the law allows the incorporation of the private right to prosecution to claim compensation from an action that violates competition law, the case has never been conducted in Thailand. Therefore, we still cannot speculate that the incorporation of the private right will obstruct the investigation process. Nevertheless, it is noted that the criminal offense for economic agent is a serious punishment and has a negative impact to business that subjects to other law.
Question
[Is it possible for the competition authority to participate as Amicus Curiae in civil lawsuits for damages generated by anti-competitive conduct?
Answer
It is not possible, since Thailand law system does not prescribe the section of Amicus Curiae in the Trade Competition Act B.E. 2560 (2017).
Párrafo 4.131, Página 164
Question
¿En qué consistieron las modificaciones realizadas a la reglamentación de los servicios de radiodifusión y telecomunicaciones, que se llevaron a cabo en 2017 y 2019?
[What were the modifications made to the regulation of broadcasting and telecommunications services, which were carried out in 2017 and 2019?]
Answer
Modifications of the Act on the Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services:
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1. The major modifications made in 2017 to the Act on the Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services were as follows:
1.1. Empowering the NBTC to reclaim unused or used but undervalued spectrums from an existing licensee for relocation with the provision of appropriate compensation for the affected license.
1.2. Providing exemption from spectrum auction for telecommunications services in the case where spectrums are sufficient for usage or are to be used for non-commercial purposes as criteria prescribed in advance by the NBTC.
1.3. Authorizing the NBTC to prescribe licensing conditions requiring spectrum sharing between the licensee and other parties, to the extent that the spectrum sharing will not interfere or compete with the licensee.
2. The major modifications made in 2019 to the Act on the Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services were as follows:
2.1. Granting the NBTC the authority in regulating satellite business and granting the right of orbital slot usage as well as the landing rights for the operation in Thailand.
2.2. Providing exemption from spectrum auction for telecommunications and broadcasting services in the case where spectrums are sufficient for usage or are to be used for public interest, state security, or non-commercial purposes as criteria promulgated by the NBTC.
2.3. Prohibiting the transfer of a frequency license to any other person without prior approval from the NBTC. The criteria and fees for the transfer of a frequency license must be promulgated in advance by the NBTC.
2.4. A spectrum licensee can use the assigned spectrum for converged services in accordance with a spectrum management master plan formulated by the NBTC.
Remark: 2.2 – 2.4 has not yet come into force until the royal decree implementing such provisions is enacted.
Párrafos 4.132, Página 165
Question
¿Cuáles son las atribuciones del nuevo Ministerio de Economía y Sociedades Digitales?
[What are the powers of the Ministry of Digital Economy and Society?]
Answer
Powers and Duties
According to the Reorganization of Ministry, Sub-Ministry and Department Act (No. 17), B.E. 2559 (to establish the Ministry of Digital Economy and Society) Chapter 8/1 Section 21/1, the Ministry of Digital Economy and Society shall have powers and duties relating to planning, promoting, developing and carrying out functions on digital economy and society; meteorology; statistics; and other civil service prescribed by law to be the powers and duties of the Ministry of Digital Economy and Society or its affiliated government agencies.
Missions
1) Proposing national plans, policies and laws relating to digital economy and society development, meteorology and statistics including cybersecurity.
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2) Develop and manage telecommunication networks for the national development of digital economy and society.
3) Promote the usage of technologies, innovation, and research, and encourage digital capacity development to raise the country's competitiveness and to improve quality of life.
4) Promote the usage of digital technology to elevate governmental operations and transform it into Digital Government.
5) Manage the country's statistical system to aid the decision-making process and promote meteorological development for its effectiveness and modernization.
6) Regulate, monitor and evaluate national plans, policies, and laws relating to digital economy and society development, meteorology and statistics including cybersecurity.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/S/400
Párrafos 3.97, Página 26
Question
Se podrían describir cuáles han sido las medidas que se han implementado durante la contingencia sanitaria derivada de la pandemia de COVID – 19 en relación al acceso a Internet de banda ancha, las tarifas y condiciones de pago especiales para los servicios de telecomunicaciones.
[Could Thailand describe the measures that have been implemented during the health contingency derived from the COVID-19 pandemic in relation to broadband Internet access, rates and special payment conditions for telecommunications services?]
Answer
Ministry of Digital Economy and Society, TOT Public Company Limited, and CAT Telecom Public Company Limited supported Work from Home measure by offering three - month free service for home internet package. This free of charge service will be enabled after network installation through 31 July 2020. Including the monthly fee reduction, payment due date extension, speed upgrade and service suspension without penalty etc.
To support the Government policy on “Working from Home”, the National Broadcasting Telecommunications Commission (NBTC) has worked with five telecommunication service providers to provide the following assistance during the COVID-19 outbreak to mobile users.
1. Providing extra 10GB to mobile phone users who currently have the Internet package not more than 10GB for free of charge.
2. Providing fixed Broadband users who currently have speed below 100 mbps will automatically be upgraded to 100 mbps. for 30 days from 10 April 2020 onwards.
3 Offering 100 minutes' voice calls for 45 days for free of charge to mobile users per number per operator. Mobile users will be able to register from 1 to 15 May 2020. It applies to both prepaid and postpaid mobile users. However, subscriptions by foreigners or corporate names are not eligible for the scheme.
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MYANMAR
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Question 1
In the Secretariat Report of Thailand's 8thTrade Policy Review, the following facts have been mentioned as follows:
(a) In chapter 2 (Trade and Investment Regimes), page 41, paragraph 2.35, it is mentioned, "Since April 2015, Thailand has granted duty-free quota-free access to its market for imports from least developed countries".
(b) In chapter 3 (Trade Policies and Practices by Measures), page 51, paragraph 3.18, it is mentioned, "Thailand notified to the WTO its preferential rules of origin for least developed countries (LDCs): according to the list specified by the Ministry of Finance, goods originating from LDCs are subject to duty-free quota-free access to Thailand's market".
(c) In chapter 3(Trade Policies and Practices by Measures), page 56, paragraph 3.33, line 1-2 and 5-6, it is mentioned, "Thailand provides tariff- and quota-free access to practically all goods originating in ASEAN partners under the ASEAN Trade in Goods Agreement (ATIGA)","Furthermore, Thailand provides duty-free and quota-free market access for imports from LDCs".
(d) In chapter 2 (Trade and Investment Regimes), page 40, paragraph 2.26, it is mentioned, "Over the review period, ASEAN member States continued to advance towards deeper economic integration. In the area of trade in goods, as a result of further trade liberalization under the ASEAN Trade in Goods Agreement (ATIGA), 98.6% of import tariffs on intra-ASEAN trade had been eliminated by 2019".
As it is known by all WTO members, Myanmar is an LDC country and also one of the ASEAN Member States. According to the facts mentioned in the above paragraph 1 (a) (b) (c) and (D), all Myanmar's export commodities to Thailand are eligible for duty-free quota-free access. However, Ministry of Commerce of the Republic of the Union of Myanmar has often been informed by local traders that they have been encountering difficulties in exporting some of major exported commodities such as Corn, Yellow Maize, Onion and Garlic in certain months.
In this connection, we would like to know whether Thailand has granted duty-free quota-free access to its market for imports from Myanmar just like the imports from other least developed countries as mentioned in chapter 2 (Trade and Investment Regimes), page 41, paragraph 2.35.
Myanmar would also like to know whether Thailand imposed any restrictions for Myanmar's exported commodities (Thailand's imports from Myanmar), and, if so, we would like to seek clarity on whether such restrictions are in line with existing WTO rules and regulations or other bilateral or regional, initiative.
Answer
Thailand's duty-free quota-free scheme is granted to the extent of goods originating from the least developed countries as specified in the list published by the Ministry of Finance.
Question 2
In the Secretariat Report, "Table 3.8" mentions the list of products subject to other import requirements, in which the importation of logs, wood and all wooden products (imported into Thailand along the Thai-Myanmar and Thai-Cambodia borders)" requires a certificate of origin or evidence of approval to export from the exporting country. Regarding this measure Myanmar would also like to know the reason for choosing only two border points (Thai-Myanmar and Thai-Cambodia) among countries bordering Thailand and Myanmar also would like to request the notification of this measure.
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Answer
The selection is based on countries (Myanmar and Cambodia) negotiations with Thailand. The notification of this measure is the Ministry of Commerce Notification A.D. 2005.
Question 3
Summary, Para 13
Export duties are levied on a few goods; although in most cases they are not applied in practice, the persistence of relatively high statutory export taxes remains an element of uncertainty for traders. Some products are prohibited from exportation and, during the COVID-19 pandemic, export bans on bird eggs and surgical masks were adopted, with the ban on the latter still in place. (and)
Paragraph (3.65), during the COVID-19 pandemic, Thailand notified to the WTO its temporary export prohibition measures for bird eggs and surgical masks. The exportation of bird eggs was prohibited from 26 March to 30 April 2020, and the exportation of surgical masks is prohibited for one year since 5 February 2020.
Myanmar finds that:
The statement in the Government Report 3.97 which states that Thailand has adopted Trade-related measures such as Export restriction of surgical masks to ensure adequacy of the products.
The Secretariat Report's Para 13 & 3.65 state that "the exportation of surgical masks is prohibited for one year since 5 February 2020".
Myanmar would like to get clarification the difference of export restriction in Government Report & Exportation prohibition in Secretariat report. The two reports should be consistent.
Answer
According to the Notification of the Central Committee for Prices of Goods and Services No. 17 B.E. 2563 dated 30.06.2020, Thailand has imposed the export restriction on surgical masks from 5 February 2020-3 February 2021 to ensure adequacy of the products as they are the vital tools for tackling the COVID-19 pandemic. (HS Code, 63079040 and 63079090)
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
Question 1
In the paragraph (3.97), it is mentioned that Additionally, various measures related to trade and investment have been implemented temporarily as follows:
(a) Trade-related measures: (1) Tariff exemption for essential products, such as surgical masks, (2) Export prohibition of bird eggs to prevent the critical shortage, (3) Export restriction of surgical masks to ensure adequacy of the products, and (4) Exemption of conformity assessment for licensing to import for sale industrial products.
Myanmar understands that:
Masks, including N95 Particulate Respirators, are included in the WCO & WHO's indicative list for COVID-19 Pandemic.
Declaration of the Special ASEAN Summit on Coronavirus Disease 2019 (COVID-19) tasked our Economic Ministers and Senior Economic Officials to explore an arrangement to preserve supply chain connectivity, particularly amongst ASEAN Member States, for the smooth flow of essential goods, including medical, food and essential supplies; and refrain from imposing unnecessary restrictions on the flow of medical, food and essential supplies.
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Thus, Myanmar would like to get clarification:
Is there any exemption for regional FTAs such as ATIGA regarding the Export restriction of surgical masks to ensure adequacy of the products?
Is there any exemption for regional FTAs such as ATIGA regarding the Export restriction of surgical masks to ensure adequacy of the products?
Answer
The measure is temporary and in conformity with the rights and obligations under the WTO Agreement as well as the FTAs to which Thailand is a party, including the ATIGA.
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NEW ZEALAND
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3.5 Government procurement
3.3.5.2 Legislation, general policies and institutional arrangements
WT/TPR/S/400, Page 91
Paragraph 3.182 of the Secretariat's report notes that the main development in the area of government procurement was the enactment of new legislation, namely the Public Procurement and Supplies Administration Act B.E. 2560, in August 2017. Paragraph 3.186 of the report goes on to state that Thailand does not allow direct cross-border participation of foreign suppliers in its government procurement contracts.
Questions
Is direct cross-border participation of foreign suppliers in its government procurement contracts prohibited by the new legislation and if so, could Thailand please advise which specific section or sections of the Act do that?
If direct cross-border participation of foreign suppliers in its government procurement contracts is not specifically prohibited by the new legislation, what actions would Thailand need to take in order to permit direct cross-border participation of foreign suppliers in its government procurement contracts?
Answer
The Public Procurement and Supplies Administration Act B.E. 2560 (2017) does not mention about direct cross-border participation of foreign suppliers.
The Public Procurement and Supplies Administration Act B.E. 2560 (2017) does not mention about direct cross-border participation of foreign suppliers. It depends on the requirement of procuring entities whether to procure products from overseas suppliers. Foreign suppliers that would like to participate in government procurement have to register in procurement system by submitting registration form in-person at the Comptroller General's Department. In term of international procurement, Regulation of Ministry of Finance on public procurement and supplies administration B.E. 2560, Clause 60 explained that:
1) The state agencies provide a draft of scope of work or specifications of supplies or construction plan to be procured.
2) Provision of procurement documents for the international price tender method and solicitation notifications shall be at the discretion of the head of State agency whether to be in the Thai or English language.
3) The publication of notifications or procurement documents shall be published for at least 30 consecutive business days.
Regarding to doing business in Thailand, foreign suppliers have to follow Foreign Business Act B.E. 1999 (2542).
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4 TRADE POLICIES BY SECTOR
4.1.3 Agricultural policies
4.1.3.2 Border measures
WT/TPR/S/400, Page 116, Paragraph 4.14
Paragraph 4.14 of the Secretariat's report notes that Thailand's "agriculture sector receives more trade protection than the rest of the economy. Various trade policy tools have been used at the border, including tariffs, surcharges, tariff quotas, import and export licencing on SPS grounds and export taxes."
Question
How does Thailand ensure the transparency and predictability of the trade policy tools being applied at the border for agricultural trade?
Answer
The import and export measures on agricultural products will be regulated and published in the Government Gazette. The effective date of each measure will state clearly in the regulations, for example immediately effective, effective after being published in the Government Gazette and effective within a specified period. The effective date determined regarding to the sensitivity of each agricultural product and current situation.
4 TRADE POLICIES BY SECTOR
4.1.3 Agricultural policies
4.1.3.2 Border measures
WT/TPR/S/400, Page 117, Paragraph 4.19
Paragraph 4.19 of the Secretariat's report notes that "Quota fill rates vary significantly" and that "Quotas may be allocated (i) on a demand basis, first-come and first-served; (ii) to manufacturing companies using the imports under quota as inputs for their production; or (iii) to specific organisations or associations"
Question
What steps is Thailand taking to improve tariff quota administration to provide a commercially reliable import arrangement setting for agricultural trade?
Answer
Since 2018, Importers can apply quota allocations online through our electronic system called e-Quota. e-Quota system will support and facilitate importers as well as reduce paper processing. Moreover, Department of Foreign Trade will continue to develop our system to enhance the effectiveness and reliability.
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4 TRADE POLICIES BY SECTOR
4.1.3 Agricultural policies
4.1.3.2 Border measures
WT/TPR/S/400, Page 119, Paragraphs 4.25-26
In paragraphs 4.25-26 of the Secretariat's report notes that "Thailand notified the WTO that it did not provide any export subsidies to agricultural products from 2015 to 2019" but that "during the global outbreak of COVID-19, exports of bird eggs of fowls [] were prohibited for seven days."
Question
Does Thailand intend to put in place further COVID-19 related measures and if so, would they be assessed based on the principles of being necessary, targeted, proportionate, transparent and temporary?
Answer
Due to the situation of the COVID-19 pandemic during March-April 2020, domestic consumption behaviours had changed because people needed to ensure stable livelihood, causing demand of necessary products to increase tremendously. The demand of eggs was no exception, and at the time there was higher consumption than that in normal situation and even higher than daily production. Therefore, the Central Committee on Prices of Goods and Services (CCP) issued two notifications, dated 26 March 2020 and 1 April 2020, regarding export restriction on chicken eggs with aims to prevent critical shortage in the domestic market resulting from the global outbreak of the COVID-19. Thailand applied the export restriction measure to bird egg pursuant to Article XI, paragraph 2(a) of GATT 1994 and in accordance with Article 12, paragraph 1 (b) of the Agreement on Agriculture. The measure was assessed it is necessary, transparent, and temporary. It was applied between 2 April 2020 and 30 April 2020. Currently, the measure is already expired. Afterward, because the situation of the pandemic in Thailand improved, Thailand has not yet issued another export restriction measure.
Regarding surgical masks, on 4 February 2020, the CCP issued a notification listing surgical masks as a "Controlled Good." Later on 2 April 2020, the CCP imposed a measure requiring exportation of surgical masks to obtain a permission letter from the Sub-Committee on Integrating Supply Management for Prevention, Control or Cure of Coronavirus Disease 2019 (COVID-19). In any event, at present, Thailand's surgical mask production capacity has increased, but we are still in need of continuing to monitor spread of the disease in other countries which has lately become quite serious. Thailand plans to review this restriction measure in early January 2021.
4 TRADE POLICIES BY SECTOR
4.2.3 Fisheries policies
4.2.3.3 Domestic support
WT/TPR/S/400, Page 125
Paragraph 4.51 of the Secretariat's report notes a number of support measures to the fisheries sector, in the form of soft loans or grants (Table 3.19).21 These include mainly programmes to help fishermen and fishing vessel owners affected by the Government's measures to combat IUU fishing (Section 4.2.1).
Questions
What steps has Thailand taken to ensure that payments made under the vessel buy-back programme in 2016 and the compensation programme in 2019 have not been used by recipients to increase fishing capacity?
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Answer
Thai government take steps as follows:
1) Run the push net vessels buy-back scheme, all participated fleets are set to be submerged to build artificial reefs near the scale artificial reefs construction of Thailand to avoid problems of navigation and fishing in shallow water.
2) Run the Compensation scheme by divided payment in two phases. For the first phase, first range the government had proceed the compensation to 252 participating vessels already and forwarded all of them into dismantling operations.
3) Both two schemes outcome is the process to carry the affected vessels and vessels participating entirely out of the fishing industry. All schemes that include building artificial reefs from vessels sunk and Ship dismantling were inspected by authorities in every step rather to ensure that these vessels will not return in fishing business.
4) The compensation scheme set payment conditions as follows:
The first installment of compensation will be paid 30% of appraised value when the owner of a vessel executed a vessel demolition contract with the Provincial Fisheries Office and agreed by the Working Group on vessel buy-back and compensation scheme. The last installment of compensation will be paid 70% of appraised value after the owner of a vessel had finished vessel demolition's process and agreed by the Working Group. Breach of contract within a specified time will fail to receive the last installment and shall have to return 30% of first installment to the Department of Fisheries.
Question
What measures has Thailand enacted so that fishers found to have committed IUU fishing do not benefit from domestic support programmes?
Answer
1. Thai government takes all actions within the framework of the law. There's a committee to consider on every stage. One decision is not a verdict, therefore a justice in consideration is well assured.
2. A Special committee, subcommittee and working group are appointed to verify profile, validity of documents and qualifications of vessel's owner and fleets. The conditions of vessels to participate in buy-back vessel scheme are legal practice and not showing in IUU lists according to the announcement of the Department of Fisheries and the Regional Fisheries Management Organizations (RFMOs) and not showing in the Watch list of the Thai Marine Department.
3. Once documents consideration are processed; the ship's valuation will work in next step and request the budget from the cabinet's approval. Then, the compensation will be paid to the owner of vessel. Every step has criteria set by those who have the knowledge, abilities and responsibilities of each faculty in accordance with their assigned duties.
4. Hence, the compensation paid to vessels following these both schemes are not involving to IUU fishing vessels.
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QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.3 Regional Trade Arrangements and Economic Cooperation
3.3.3 APEC
WT/TPR/G/400, Page 25
Paragraph 3.108 of Thailand's Country Report notes "Thailand supports the final assessment of the Bogor Goals which could be served as a guideline to improve the narrative of trade and investment in our region and provide recommendation on APEC's regional economic integration in the future. Hence, Thailand joined APEC Member Economies to undertake Individual Action Plan Update for 2019-2020 to provide improvements made since 2018 and future works planned for 2020 and beyond."
Question
New Zealand notes that the liberalisation of tariffs on environmental goods (as mandated through APEC's Environmental Goods List of 2012) is one of the tangible tariff commitments APEC economies have made in supporting the Bogor Goals. New Zealand welcomes Thailand's efforts towards implementing this to date. We are interested to hear of Thailand's plans for completing this process.
Answer
Thailand has been working towards full implementation of the commitment to reduce tariffs to 5% for all products on the EGL. However, the process has been delayed internally due to the COVID-19 pandemic.
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NORWAY
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Reference is made to WT/TPR/S/400 para 4.193 regarding a cargo reservation for government cargo and the possibility for waivers as described in WT/TPR/M/326/Add.1/Rev.1 (pages 76 and 77) during TPR 2015.
Question
1. Could Thailand provide information on the use of the waiver possibility for government cargo in terms of the number of waivers in recent years and the share (percentage) of cargo carried by Thai vessels and foreign vessels respectively?
Question
2. Likewise, could Thailand provide information on the number of waivers issued in recent years for domestic maritime transport (cabotage) for foreign flagged vessels?
Answer for Q1-Q2
To obtain exemption from the cargo reservation measure, which requires imported government cargo to be carried by Thai flag vessels available on mandatory shipping routes, the Marine Department must verify before granting exemption to make sure that no Thai flag vessels are available for services on such shipping routes at the time goods are ready for loading. However, there are certain goods which are not required to be carried by Thai flag vessels or seek permission to use non Thai-flag vessels as follows:
1) Petroleum and petroleum products.
2) Imported government cargo under foreign loans with a condition on transport means, which makes it impossible to use the service of Thai-flag vessels.
3) Small shipments with inexpensive freight charges. The first category is imported government cargo from (1) Japan (2) Republic of Korea (3) Chinese Taipei (4) Hong Kong, China (5) Singapore (6) People's Republic of China and (7) Malaysia, each shipment of which does not exceed 1,000 kilograms in terms of weight or 1 cubic meter in terms of volume, with freight charges not exceeding 2,500 Baht. The second category is imported government cargo from (1) European countries: Norway, Sweden, Finland, Denmark, United Kingdom, Ireland, Germany, Netherlands, Belgium, France, Spain, Portugal, Italy and (2) United States, each shipment of which has the same weight and size as the first category, but the freight charges not exceeding 5,000 Baht.
4) Imported government cargo that need transshipment on the following shipping routes and under specific circumstances:
(1) All shipping routes, provided that such cargo are loaded in LCL containers together with other cargo which are not required to be carried by Thai-flag vessels and such containers are loaded at the port not located on the mandatory shipping routes.
(2) On the European shipping routes: Norway, Sweden, Finland, Denmark, United Kingdom, Ireland, Germany, Netherlands, Belgium, France, Spain, Portugal, and Italy, before transshipment to Thailand.
If Thai-flag vessels are not available to provide services, the government authority/agency or its contract party is required to seek permission to engage services provided by non Thai-flag vessels from the Marine Department no less than 10 days before imported goods are loaded. After receiving such request, the Marine Department will contact Thai shipowners/operators to see whether any Thai-flag vessel or chartered foreign vessel is available to transport imported goods to Thailand. If the Department receives a reply from a Thai shipowner/operator that he has a Thai ship available to provide service, the Department will not grant permission to the requested government
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When the non Thai-flag vessel arrives at a port in Thailand, the government authority/agency or its contract party must notify the Marine Department of such arrival. If any government authority/agency or its contract party does not use the service of Thai-flag vessel or chartered foreign vessel or does not seek permission to use non Thai-flag vessel from the Marine Department, such government authority/agency or its contract party is required to pay a special fine to the Marine Department.
Cases of exemption (permission granted for engaging non Thai-flag vessels to transport imported government cargo to Thailand) during 2017 – 2019 and percentage of cargo carried by Thai-flag vessels and non Thai-flag vessels are as follows:
No. of voyages Share of cargo carried (%) Year Total Thai-flag Non Thai-flag Thai-flag Non Thai-flag 2017 37 4,549 4,586 0.81 99.19 2018 90 4,993 5,083 1.77 98.23 2019 47 5,092 5,139 0.91 99.09
Source: Maritime Regulatory Division, Marine Department.
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PERU
Question 1
¿Qué porcentaje de los trabajadores de las empresas tailandesas que se involucran en el comercio internacional, es mujer? ¿Qué puestos/cargos son ocupados predominantemente por mujeres dentro de dichas empresas?
[What percentage of the people working in Thai companies involved in international trade is female? What positions are most commonly held by women in such companies?]
Answer
Thailand does not have the requested data. However, we have statistics on employment by sector and sex as of Q3/2019 shown in the table below.
Unit: Thousands Q3/2019 Sector Male Female Employee Employee Total 9,666.8 8,050.5 1. Agriculture, forestry and fishing 948.5 588.2 2. Mining and quarrying 40.2 14.8 3. Manufacturing 2,477.5 2,101.8 4. Electricity, gas, steam and air conditioning supply 95.2 28.0 5. Water supply; sewerage, waste management and remediation activities 58.4 29.4 6. Construction 1,262.1 248.6 7. Wholesale and retail trade; repair of motor vehicles and motorcycles 1,331.8 1,165.5 8. Transportation and storage 537.4 189.3 9. Accommodation and food service activities 352.5 632.9 10. Information and communication 104.2 72.3 11. Financial and insurance activities 189.8 279.3 12. Real estate activities 56.4 73.3 13. Professional, scientific and technical activities 112.1 149.0 14. Administrative and support service activities 284.0 220.2 15. Public administration and defence, compulsory social security 957.9 595.0 16. Education 360.0 751.7 17. Human health and social work activities 132.0 469.8 18. Arts, entertainment and recreation 60.1 57.9 19. Other service activities 230.5 179.2 20. Activities of households as employers; undifferentiated goods and services- 41.6 169.6 producing activities of households for own use 21. Activities of extraterritorial organizations and bodies 2.6 1.8 22. Unknown 32.0 32.8
Source: National Statistics Office.
Question 2
¿Qué acciones públicas y/o privadas, internacionales o nacionales, se han llevado a cabo en Tailandia para fomentar una mayor participación de la mujer en la economía y en particular en el comercio internacional?
[What measures have been taken to increase participation of women in the economy, particularly in international trade?]
Answer
The Federation of Business and Professional Women's Associations of Thailand Under the Royal Patronage of H.M. The Queen (BPW Thailand) is one of the business partners of Department of Women's Affairs and Family Development (DWF), Ministry of Social Development and Human Security (MSDHS). BPW Thailand became an associate member BPW International in 1976. Since the beginning, BPW Thailand has continuously carried on its activities and objectives with development the professional, business and leadership potential of women on all levels through
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As acknowledged Thailand as a member of ASEAN and also the DWF as the focal point of ASEAN Committee on Women (ACW) of Thailand, MSDHS carries out the implementation of the ASEAN's regional key priorities in women's issues and also the cooperation and the promotion of Women Entrepreneurs' Network. So, BPW Thailand has been cooperated as the ASEAN Women Entrepreneurs' Network of Thailand (AWEN - Thailand) that aims to work with other international and regional networks of women entrepreneurs or AWEN with the objective of exchanging experience and developing new initiatives to promote economic and trade activities for women in order to enhance and strengthen their skill of entrepreneurship at the national level as well as international level.
Question 3
¿Podría Tailandia endosar próximamente la Declaración Conjunta sobre Comercio y Empoderamiento Económico de la Mujer en la OMC, o participar en el Grupo de Trabajo informal de la OMC que busca compartir prácticas y métodos para fomentar el empoderamiento económico de la mujer y su participación en el comercio?
[Could Thailand soon endorse the Joint Declaration on Trade and Economic Empowerment of Women in the WTO, or participate in the WTO informal Working Group that seeks to share practices and methods to promote the economic empowerment of women and their participation in the economy?]
Answer
Department of Women's Affairs and Family Development (DWF), Ministry of Social Development and Human Security, Thailand, has never participate in the WTO informal Working Group to share practices and methods on the said above issues. However, DWF is the principle national mechanism for the promotion of gender equality and women's empowerment, is assigned to be the secretariat of the National Committee on the Policy and Strategy for the Advancement of Women, the convener of the National Women Assembly, as well as to monitor the implementation of the Chief Gender Equality Officers and the Gender Focal Points. The DWF is the national focal point for mainstreaming and implementing obligations and standards under the CEDAW, BPfA and SDG 5.
Women's Economic Empowerment Implementations are related to some issues of Joint Declaration; the examples are as following:
1. Gender-Responsive Budgeting
In accordance with the Constitution of 2017, there has been operationalized the concept of Gender- Responsive Budgeting (GRB) through the following measures:
At the policy level, the Checklist and Gender Responsive Budgeting Manual has been developed and incorporated in the National Budgeting System. The Annual Budget Expenditures Act for Fiscal Year 2019 was developed while taking into account the different needs based on gender, age and conditions of persons according to the Constitution. In addition, we are working with the Organization for Economic Co-operation and Development (OECD) on a project in advancing budget reform through the Budgetary Governance Review under OECD's Thailand Country Programme to analyze and oversee that budgetary implementation is aligned with public goals and on another project in developing a Gender Budgeting Action Plan.
At the operational level, Thailand has taken several initiatives to build capacity on gender-responsive budgeting through existing mechanisms such as through Chief Gender Equality Officers and Gender Focal Points, local government organizations, women's networks, and CSOs. Budget needs assessment is supported by the Gender Analysis Matrix.
2. The collection of gender – disaggregated data
Supporting the government sector in collecting sex disaggregated data, for analytical purpose and for formulating gender - sensitive policies as well as for monitoring progress made in the realization
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3. Gender - based discrimination Protection
Promulgation the 2015 Gender Equality Act, to protect everyone from gender - based discrimination. Under this Act, the Committee on the Determination of the Unfair Gender Discrimination is in charge of tackling gender-based discrimination and compensation measures will be provided for victims of such discrimination by the Gender Equality Promotion Fund.
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PHILIPPINES
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
1 ECONOMIC ENVIRONMENT
Paragraph 1.7, Page 14
The COVID-19 outbreak, which hit Thailand in early 2020, has had an adverse impact on the economy due to a sharp decrease in external and domestic demand. The contraction of global trade has severely affected Thai merchandise exports and disrupted global supply chains, including the automobile sector, which is one of Thailand's main industries.
Question 1
The auto sector is one of Thailand's top industries. What are the government initiatives to support the sector that was globally hit by the pandemic?
Answer
The Ministry of Industry has policies to develop and upgrade automotive industry by focusing on infrastructure development such as to set up The Vehicle and Tire Research and Testing Center (ATTRIC), to promote investment and innovation for modern automotive and to develop human resources in order to maintain the leadership position in production of international standard modem vehicle in Southeast Asia and Oceania region. The Ministry of Industry has not yet provided any specific measure to support automotive sector because of the COVID-19 pandemic.
Paragraph 1.25, Page 21
The Ministry of Finance is currently drafting a tax reform plan that will include changes to tax policy and tax administration. The main objectives of the tax reform plan are: (i) to make the tax system fair and transparent; i.e. with a tax structure that reduces income inequality, with clear rules and regulations to minimize authorities' discretion and to fight against corruption; (ii) to make the tax system easy and efficient by using advanced technologies (e.g. National e-Payment, e-Tax Invoice, e-Receipt, e-Withholding Tax, and income tax returns via PromptPay); and (iii) to make the tax system competitive and sustainable with competitive tax rates to attract investors while still generating sustainable revenues for the future.
Question 2
Is the tax reform proposal still being considered by the executive and legislative bodies in light of the COVID-19 pandemic? Further, will the reform include changes in the incentives and tax rates for manufacturing companies?
Answer
Due to the COVID-19 situations, Thailand's Ministry of Finance is now revising the tax reform plan to make it more suitable to the country's social and economic conditions after the pandemic. The tax reform plan aims at further enhancing fiscal sustainability to allow the government to sufficiently respond to the pandemic and strengthening the tax system in the medium term. This will enable the government to deal with major challenges including moving towards an aging society, budget allocation to welfare programs for low income earners and more investment on public infrastructure. Furthermore, for manufacturing companies, the reform will improve the tax structure and adjust tax rates for various tax types to help relieve manufacturing companies' tax burden and to promote future investment.
Additionally, Excise tax reform (Excise Tax Act B.E. 2560) has already been in effect since 16 September 2017. Currently, the Excise Department is not in the process of tax reform. However, the Excise Department has taken measures to reduce the impact of the COVID-19 pandemic situation such as to extend the tax payment period, and to set zero tax rate for 95% ethy alcohol as material for producing clean and sanitized products, etc. However, these measures have ended. Therefore,
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2 TRADE AND INVESTMENT REGIMES
Paragraph 2.8, Page 34
Thailand 4.0 is the Government's key development policy underpinning the National Strategy. Its aim is to transform Thailand into a value-added, innovative and knowledge-based economy. Thailand 4.0 is based on the following core elements: advancing technology and innovation to increase productivity of already high-performing industries; developing new technology-based industries with great growth potential; enhancing Thailand's position as a regional hub by upgrading its physical infrastructure (ports, road and rail links, and airports); and promoting the digital competitiveness of Thai SMEs. Ten industries have been targeted under Thailand 4.0: the first five (called S-curves) are existing industries: next-generation automotive; smart electronics; medical and wellness tourism; agriculture and biotechnology; and "food for the future". The other five (new S-Curve) industries are: robotics; aviation and logistics; biofuels and biochemicals; digital; and medical hub. In order to attract investment to these targeted industries, the Government implements various incentives measures (Section 3.3.1)
Question 3
What are the key incentive schemes under Thailand 4.0, and how are they designed to contribute to achieving policy goals?
Answer
Thailand has applied the best practices from other countries to formulate a strategy under the policy of Thailand 4.0. The strategy has been improved aligning with the modern context and also developed to attract the foreign companies.
Thailand Board of Investment provides both tax and non-tax incentives for promoted companies. An example of tax incentive is the exemption from payment of corporate income tax for a certain period, exemption of import duty for machinery, exemption of import duty for raw materials used in R&D, exemption of import duty for raw materials used in export, and other measures. An example of non-tax incentives is the right to bring foreign skilled workers and experts into Thailand. Incentive scheme is designed to attract more investment in activities with advanced technology, with innovation and with environmental-friendly process in order to achieve knowledge-based economy with sustainable development in line with Thailand 4.0 policy.
Paragraph 2.12, Page 35
Thailand's trade policy is formulated within the broader framework of the 20-Year National Strategy (2018-2037) and the NESDP 2017-2021. In this context, the MoC has issued its own action plan for 2020-2022. In addition to the objectives and strategies that have guided trade policy since the last Review, the current version of the MoC Action Plan includes the objective of "Enhancing Capacity Building and International Development Cooperation", aimed at increasing Thailand's capabilities and competitiveness in order to expand its presence in foreign markets, and at enhancing its economic partnerships with key trading partners (Table 2.1). […] The Action Plan also includes a strategy for increasing private sector competitiveness through innovation, technologies and creativity, and for integrating micro, small and medium-sized enterprises (MSMEs) into global value chains.
Question 4
Please elaborate further on the initiatives that were undertaken to implement the said Action Plan on promoting MSME integration to global value chains.
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Answer
To promote MSMEs to become a part of global value chain, Ministry of Commerce has encouraged MSMEs to produce high value-added products by the utilization of innovation, creativity, technology, commercialization of research findings, product designing, brands and trademarks creation, and so on. These have been in order to make their products become more attractive and valuable. Moreover, MOC has created market opportunities through social media, online market channel; built consumer's confidence and encouraged business coalition and networks to be able to integrate MSMEs into Global Value Chain.
Various programs undertaken by Ministry of Commerce, either on capacity building or marketing activities, MSMEs would always be considered as our priority to participate in the programs. MOC has encouraged MSME to take part in trade fairs with large – size exhibitors, in order to increase their opportunities to networking with large enterprises in which most of them are the major exporters existed in the global value chain.
3 TRADE POLICIES AND PRACTICES BY MEASURE
Paragraph 3.1 and Table 3.1, Page 48
"Thailand's customs procedures are governed mainly by the Customs Act B.E. 2560 (2017), which came into force on 13 November 2017.1 The Act, which repealed the Customs Act B.E. 2469 (1926), aims to modernize Thailand's customs law by easing customs procedures and bringing more transparency. It reduced incentives and rewards to customs officers and whistle-blowers; clarified customs offences and statutory penalties; imposed deadlines for post-clearance audits, duty evaluation, duty refunds, and appeals; and created an Appeal Committee, among other aspects (Table 3.1)."
Question 5
In the old Customs Act, the excessively generous rewards facilitated wrongdoings in customs procedures, and introduced biased audits and investigations. Whereas in the revised new Customs Act which aims to modernize Thailand's customs law by easing customs procedures and bringing more transparency, the commission paid to a customs officer or a whistle-blower is limited to THB 5 million per case, with a view to eliminating any possibility of bias or wrongdoing. What are the measures being implemented, if any, to ensure that the reduced rewards to the customs officer or whistle-blower will prevent erroneous reporting of customs evasion and customs avoidance? Are there plans to end this scheme?
Answer
According to the Customs Acts B.E. 2560, officers or individuals, who involved in detection of customs fraud in any offenses, may be entitled to incentives and rewards. However, incentives and rewards shall be paid in proportion and by conditions according to section 255 of the Customs Act. Therefore, the Customs Department has issued Customs Regulation on incentives and rewards (B.E. 2560) in order to implement the section 255. This regulation rules that rewards shall be paid on certain offenses such as in the case of tax leakage. The regulation also determined the further criteria for reward payment such as whether the illicit action is exists. The reward payment shall be paid only to the eligible person and it is available after the case is final. The mentioned criteria are provided to ensure an efficient reward scheme.
Furthermore, even with reward scheme or not, the defendant who opposes or needs to appeal against the claim of the officer shall have the right to appeal either on classification, valuation, or litigation to separate committees consisting of some representatives from outside customs area, i.e. prosecutor. These committees could scrutinize the case and decrease defects of customs-offense detection from the beginning if any. Nevertheless, we realized that the reward scheme may cause a concern to people relating to customs matters. Thus, the Thai Customs Department is handling a research project to avoid the conflict of interest in every aspect, at the same time, to maintain whistle-blowers and customs officers' efficiency of work.
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Question 6
It is observed that Thailand's incentive system has been a cause of serious concern, is there any ongoing reforms to eliminate this incentive scheme?
Answer
Currently, Thailand has created the 20-Year National Strategy. One of these strategies is to rebalance and develop management of public authorities. This strategy sets the roadmap to modify laws and reform anti-corruption system. Pursuant to the 20-Year National Strategy, the incentives and rewards scheme will be studied.
Question 7
How does Thailand ensure that the incentive scheme is objectively implemented?
Answer
Thailand makes the utmost afford to implement the incentives and rewards scheme transparently and equitably. Defendants are enabled to present the evidence against officers. They can also access the appeal process on classification, valuation, and litigation. The payment of incentives and rewards is also implemented in conformity with the customs regulation on incentives and rewards (B.E. 2560). These measures will strengthen the awareness of customs officers in the enforcement of laws and ensure that the incentives and rewards will be paid accordingly to the law.
Paragraph 3.13, Page 50
"Importers may appeal valuations within 30 days to the customs Appeal Committee; the decision of the Appeal Committee is final unless the importer raises concerns in a tax court. The Authorities stated that, since 2015, 116 appeals have been made."
Question 8
What is the basis of Customs for rejecting a transaction value?
Answer
1. Whether sale for exportation to Thailand occur or not.
2. Whether there is any aspect falling into condition as per No. 16 of the Ministerial regulation for determining and using customs valuation BE. 2560, for instance; restriction, price is subject to condition or consideration for which a value cannot be determined with respect to the goods being valued, proceeds of any subsequent resale, and influent to the price in case buyer and seller are related). However, some restrictions are acceptable, including:
- restrictions that imposed or required by Thai regulations/authorities
- restrictions that limit the geographical area in which the goods may be resold or
- restrictions that do not substantially affect the value of the goods.
3. When Customs officers state reasons to doubt the truth or accuracy of the declared value but importer does not respond or making any sufficient grounds/evidence (within certain period of time) that the declared value represent the total amount actually paid or payable for the imported goods, adjusted in accordance with the Ministerial regulation for determining and using customs valuation BE. 2560, No. 11-15.
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Question 9
When importers file for an appeal on the rejected transaction value, how are the appeals evaluated by the Appeal Committee?
Answer
Regarding to Customs Act, B.E. 2560, the appeal committee ensure to reject transaction value accordingly.
Section 41 - The Appeal Committee shall complete an appellate procedure within one hundred eighty days from the day a customs officer has received an appeal with all evidences and documents related to the appeal.
In case there is a necessary cause, the Appeal Committee may extend the appellate procedure for not more than ninety days.
Section 42 - If the Appeal Committee cannot complete an appellate procedure within the period of time prescribed in Section 41 paragraph one, an importer or an exporter shall have a right to file a lawsuit in a court.
In case the importer or the exporter files a lawsuit at the court, the Appeal Committee shall dismiss the appeal of such importer or exporter.
Question 10
What are the methodologies, if any, applied in determining transaction value?
Answer
Price actually paid or payable, adjusted in accordance with the Ministerial regulation for determining and using customs valuation BE. 2560, No. 11-15, on basis of objective and quantifiable data for determining the value.
Question 11
If there are several methodologies, how does Customs determine the methodology to be applied in a given case? Please cite the specific provisions of the law or rules on the application of methodologies and determination of value.
Answer
Customs values are determined by several methodologies in orders, starting from method 1 to 6; transaction value, identical goods, similar goods, deductive method, computed method, and fallback method as per the Thai Customs Act BE. 2560, section 16, and the Ministerial Regulation for Determining and Using Customs Valuation B.E. 2560.
Question 12
What are the procedures observed before introducing or amending any customs laws, rules and regulations?
Answer
Thai Customs Department has amending any customs laws, rules and regulation in order to complied WTO and WCO regulations to implement policy relating trade facilitation and collaboration and also modernization and simplify customs procedure at the same time.
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Question 13
How much is the reduction on import duties on imported raw or essential materials?
Answer
Under Thailand Board of Investment's incentive scheme, the Board may grant a promoted juristic person a reduction of import duties not exceeding 90% of the normal rates.
Question 14
How will the government determine whether the raw materials are used for manufacturing of goods for domestic sale?
Answer
This can be determined by certified documentation provided by the company, for example, the invoice of local consumers.
Paragraph 3.20, Page 51
Thailand has a relatively complicated tariff structure. Non-ad valorem duties account for 8% of all tariff lines (860 out of 10,813). Specific duties are applied on 37 tariff lines (mainly petroleum oils; playing cards and tables designed for games; and undenatured ethyl alcohols). Alternate rates (the higher of an ad valorem rate and a specific duty) apply to 823 tariff lines. It was not possible to calculate ad valorem equivalents (AVEs) for a number of non-ad valorem tariffs.
Question 15
How often does Thailand review its MFN tariff structure and what factors/circumstances trigger such review?
Answer
Thailand revises its tariff structure on a regular basis and the tariff rates have been reduced according to the country's economic situation. Should there be any circumstances such as changes in economics, trade or investment which make tariff reductions deem appropriate or necessary, the tariff structure will be revised accordingly.
Question 16
What is Thailand's procedure in the modification of its MFN tariff rates/structure?
Answer
First, having gathered information and statistics of relevant economics, trade, investment and import data, the Ministry of Finance (MOF) will consult with both government and non-government organisations about the possibility of tariff rate cuts or tariff structure change. Then, the MOF will propose the "new" tariff rates to the Cabinet for approval. The "new" rates will be enacted into law and will be enforced from a specified date.
Question 17
Which government agency/ies is responsible for policy and implementation issues related to tariffs? What are their specific mandates/functions?
Answer
Ministry of Agriculture and Cooperatives, Ministry of Commerce, Ministry of Finance, Ministry of Industry are responsible for cooperatively revising the tariff rates to support economics, trade and
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Paragraph 3.21, Page 51
For the specific duties where AVEs were calculated, AVEs range from zero to 270% (HS code 2207.10.00 - undenatured ethyl alcohol of an alcoholic strength by volume of 80% vol. or higher (THB 80/litre)). For the alternate duties where AVEs were calculated, their AVEs range from 1% to 557.4% (HS code 4421.99.80 – toothpicks of wood other than bamboo (20% or THB 100/kg, whichever is higher)).
Question 18
What is the rationale for imposing high tariffs/AVEs?
Answer
The imposed tariff rates are not higher than the bound rates. Some of these tariff rates are reduced by Free Trade Agreement negotiations. However, when revising the possibility of reducing tariff rates, the government has to concern about tariff revenues in the short term, and also fiscal sustainability in the long term.
Paragraph 3.23, Page 52
The simple average applied MFN tariff rate rose from 13.4% in 2014 to 14.5% in 2020 (including AVEs where calculable). The rise was mainly due to the nomenclature change from HS12 to HS17. A major change during the transposition process was the split of tariff lines in the transport equipment section (HS section 17), where the number of tariff lines at the HS eight-digit level increased from 565 in 2014 to 1,033 in 2020, and the number of tariff lines with a tariff rate of 80% increased from 106 in 2014 to 436 in 2020. The authorities stated that the ASEAN Harmonized Tariff Nomenclature Task Force (currently the Technical Sub-Working Group on Classification) changed and split these tariff lines to align them with the standard HS2017 of the WCO.
Question 19
Which government agency/ies has the specific mandate on the administration and transposition of Thailand's tariff schedules?
Answer
Ministry of Finance.
Paragraph 3.47, Page 61
The legislation on anti-dumping and countervailing measures – the Anti-Dumping and Countervailing Act, B.E. 2542 (1999) - was amended on 22 May 2019, and the amendment came into effect on 18 November 2019. The authorities indicated that they will notify the WTO once the translation into English is completed. The authorities state that the amendment clarifies certain issues, including anti-circumvention provisions.
Question 20
To address the problem of circumvention, what measures have the Thailand authorities adopted? Please elaborate.
Answer
Thailand will conduct a circumvention investigation. If circumvention is found, Anti-dumping duties not exceeding the residual anti-dumping duty may be extended to imports from companies which circumvent the measure in force.
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Paragraph 3.49, Page 61
Between 1995 and end-2019, Thailand initiated 84 anti-dumping cases, including 23 after 2015. It notified to the WTO that, as at 30 June 2020, 43 anti-dumping measures in the form of duties were in force on 12 types of products: 10 types of steel or steel alloys; citric acid; and inner tubes of rubber for motorcycles. Thirty of these measures were extensions of existing measures beyond their sunset period. Actions mostly affected products originating in China (11), Chinese Taipei (5), the Republic of Korea (5), and Viet Nam (5). During the review period, Thailand terminated its anti- dumping measures on:
• sodium tripolyphosphate from China, in 2015;
• unglazed/glazed ceramic flags and paving, hearth or wall tiles; unglazed/glazed ceramic mosaic cubes and the like, whether or not on backing, from China, in May 2017;
• "H-sections" from China, on 10 October 2017; and
• painted hot dip, galvanized, of cold-rolled steel, and painted hot dip, plated or coated with aluminium zinc alloys of cold-rolled steel, from China, Chinese Taipei, and the Republic of Korea, in January 2019.
In sunset reviews:
Question 21
Do Thailand authorities conduct on-site investigation in the country of export for purposes of determining the likelihood of continuation or recurrence of dumping?
Answer
If investigating authorities get enough information or evidence to determine the likelihood of continuation or recurrence of dumping, there is unnecessary to have an on-site verification in the country of export.
Question 22
What factors are considered in determining the likelihood of continuation or recurrence of injury?
Answer
In order to determine the likelihood of continuation or recurrence of injury, the factors as stated in Article 3 of the ADA such as the volume of the dumped imports, the effect of the dumped imports on prices and the impact of the dumped imports on the domestic industry shall be examined.
Question 23
How are de minimis dumping margins treated?
Answer
De minimis dumping margins principle only applies in an original investigation but there is no obligation to apply such principle in the review process.
Paragraph 3.53, Page 62
The DFT is responsible for conducting investigations. The Committee, based on investigation results, may impose safeguard measures in the form of an additional duty, a quantitative restriction, or other measures to reduce the volume of imported goods so that the domestic producer(s) of the like or directly competitive product can implement an adjustment plan. Safeguard measures are for a maximum of four years, and may be extended to a total of 10 years.
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Question 24
Is the DFT responsible for monitoring compliance by the domestic industry with its adjustment plan/s? Is so, what parameters are considered? IS compliance with adjustment plan/s used as basis for extension of a SG measure?
Answer
The DFT, the Safeguard Committee secretary, conducts Safeguard investigations while the Committee is responsible whether to impose the measure or not. As for the adjustment plans of the domestic industry, Thailand has another committee responsible for considering and reviewing the adjustment plans. A determination for extension of a SG measure, other than a necessity of a measure to prevent or remedy serious injury, the evidence of industry adjusting shall be also taken into consideration.
Paragraph 3.109, Page 76
Criteria for the BOI to approve applications include:
• The value added of the project must not be less than 20% of revenues (for projects in agriculture, agricultural products, electronic products and parts, and coil centres, the value added must be at least 10% of revenue);
• Activities must use advanced technology;
• Adequate and efficient guidelines and measures to protect the environment and to reduce environmental impacts must be included;
• The minimum capital requirement of each project must be THB 1 million (excluding the cost of land and working capital); and
• For newly established projects, the debt-to-equity ratio must not exceed 3:1. Expansion projects are considered on a case-by-case basis.
Question 25
Assuming the criteria for approval are met, are there any further restrictions or grounds for denial of application specifically listed on the BOI's application procedure?
Answer
No. However, criteria for approval also includes conditions and requirements under relevant laws and regulations.
Question 26
What are the exact classifications for "advanced technology" and "[reduced] environmental impacts"?
Answer
It is indeed difficult to define the term "advanced technology". Thailand Board of Investment has set up working groups and sub-committee, comprising of experts from research institutions and relevant government agencies in related fields to consider the production process submitted by the company. In terms of environment, promoted projects have to comply with relevant laws and regulations.
Paragraph 3.115, Page 77
The BOI grants additional incentives based on the value of a project (i.e. merit-based incentives):
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• merit for competitiveness enhancements: additional CIT exemption of up to three years; and additional investment cap of up to 300% of the permitted expenses;
• merit for decentralization: additional CIT exemption of up to three years; some activities receive a 50% reduction in CIT for five years; double deduction for transportation, electricity, and water costs for ten years; and deduction of 25% from the net costs of the project's infrastructure installation or construction; and
• merit for industrial area development: additional CIT exemption of up to one year.
Question 27
The Thai government has established several food manufacturing/innovation complexes in many parts of the country. Under Thailand's activity-and-merit-based incentive system, is there a differentiated menu/set of incentives afforded to locators depending on which food complex/innovation hub they will locate? Further, what is Thailand's criteria in selecting a location wherein the food complexes/innovation hubs will be established?
Answer
The package of incentives granted to investors in food innovation hub is related to eligible activities regardless of the location of the food innovation hub. The locations of food innovation industrial zone (Food Innopolis) are identified by the government agency under the Ministry of Higher Education, Science, Research and Innovation. For more information, please visit http://foodinnopolis.or.th/en/home/.
Paragraphs 3.171, 3.175, Pages 89, 90
The Thailand Tobacco Monopoly (TTM) is an SOE under the supervision of the Ministry of Finance. It was authorized under the Tobacco Act B.E. 2509 as the sole producer of cigarettes in Thailand, with a view to reducing the negative consequences of cigarette consumption by controlling the product's domestic supply. Private traders with permission from the Excise Department may import or export tobacco or tobacco-related products. In 2014 and 2015, all cigarettes imported into Thailand were imported through the TTM but in 2016 the TTM imported only a quarter of all cigarette imports. From 2014 to 2016, all cigarettes exported from Thailand were exported through the TTM.
On 23 May 2019, the State-Owned Enterprise Development Act was enacted, which summarized the SOE development mechanisms in Thailand. Under the Act, the State Enterprise Policy Office (SEPO) is the agency in charge of:
• supervising and overseeing state-owned enterprises (SOEs) and enhancing systematic collaboration and efficiency, through its State-owned Enterprise Policy Committee;
• providing clear and consistent direction for SOE development, through its SOE Development Plan;
• setting up an evaluation system to reflect the efficiency of the implementation of the SOE development Plan, through its Performance Evaluation System;
• selecting qualified persons to be board members, through a standardized and transparent process, through its Director Nomination Committee; and
• enhancing good corporate governance and ensuring fiduciary obligations, through its Governance and Transparency Mechanisms.
Question 28
28. How does Thailand guarantee the accountability and transparency of administrative actions relating to customs matters for SOEs especially in ensuring that currently implemented measures are enforced without prejudice to imported goods that are also domestically produced for local
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Answer
According to section 4 of the Trade Competition Act 2017, the Act shall not apply to the operation of the followings:
1) Central, regional, or local administrations;
2) State-owned enterprises, public organizations, or other government agencies, provided that they conduct their undertakings according to the law or resolutions of the Cabinet which are necessary for the benefit of maintaining national security, public interest, the interests of society, or the provision of public utilities;
3) Groups of farmers, cooperatives, or cooperative groups recognized under the law and having the aim in their business operations to benefit the vocation of farming;
4) Businesses that are specifically regulated under other sectoral laws having jurisdiction over competition matters.
Therefore, SOEs that are not in accordance with the section 4(2) of the Trade Competition Act 2017 shall be included in the enforcement of the scope of the Act.
Paragraph 3.222, Page 103
Domestic improvements during the review period included the establishment of a subcommittee on enforcement against IP infringement (led by a Deputy Prime Minister), the amendment of the Trademark Act to provide for the registration of sound marks, and the amendment of the Copyright and Computer Crime Acts to better address online IP infringement. Thailand made considerable efforts towards streamlining its trademark and patent examination processes, which led to a reduction in patent pendency during the review period.
Question 29
Before the amendment of the Trademark Act, did Thailand allow the registration of other non-traditional marks? If not, we would like to seek clarification why the amendment pertains only to the registration of sound marks?
Answer
We allow registration of three dimensional trademarks before the amendment of the Trademark Act. As sound has increasingly been used as trademarks by businesses, Thailand amended the Trademark Act to enable registration of sound marks.
Question 30
Does Thailand plan to accede to the Singapore Treaty on the Law of Trademarks?
Answer
There is currently no plan for Thailand to accede to the Singapore Treaty on the Law of Trademarks.
Paragraph 3.253, Page 110
The amendments further establish a separate cause of action against the illegal recording of films in movie theatres ("camcording"), and introduce liability exemptions for Internet service providers (ISPs) when preliminary injunction motions are filed for the removal of copyright-infringing content from the Internet. While the adoption of the takedown mechanism was well received, IP owners continue to raise concerns over excessive requirements and limited effectiveness vis-à-vis foreign
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ISPs, since Section 32/3 does not explicitly provide for website blocking. Further concerns relate to the functioning of collective rights management and the widespread use of unlicensed software. The authorities reported that Thailand is in the process of addressing these concerns, by replacing Section 32/3 with a notice on the takedown process.
Question 31
How does Thailand intend to implement the notice on the takedown process particularly towards ISPs with servers not located in Thailand?
Answer
In case that the ISPs whose servers are not located in Thailand, the cooperative measures via foreign government agencies can be taken.
Paragraph 3.258, Page 111
"Enforcement actions by the Royal Thai Police, the Department of Special Investigation, and the Customs Department have, in general, declined, from a total of 8,733 in 2015, to 4,880 in 2019. Raids conducted by the Customs Department during said period remained stable, at around 1,000 per year, while those conducted by the Royal Thai Police and the Department of Special Investigation declined. The decline reflected overall changes of IPR-infringing cases from physical to digital ones."
Question 32
In addition to the enforcement actions on IPR-related matters together with the Royal Thai Police and Customs Department, what are the other roles of the Department of Special Investigation?
Answer
Roles of the Department of Special Investigation on Intellectual Property Rights Infringement Matters
The Department of Special Investigation (DSI) is a multidisciplinary law enforcement agency under the Ministry of Justice that has authority to prevent, suppress and control serious and complex crime that causes huge damage, both economically and socially, to national security.
"Special cases" are serious and complex criminal cases that are committed by influential persons acting as principals, instigators, or accessories, or associates with organized criminal groups who possess and abuse knowledge of highly sophisticated technology in their criminal conduct, and that require innovative forms and special methods of inquiry, investigation, and evidence collection to dismantle organized crime syndicates that cause serious effects upon public order and moral, national security, international relations, or the country's economy or finance.
Under Section 21 Paragraph One (1) of the Special Investigation Act B.E. 2547 (2004) and its amendments, special cases required to be investigated and examined are criminal cases according to the laws provided in the Annex attached to the Notification of the Board of Special Case (No. 7) B.E. 2562 (2019), where such criminal cases shall have any of the following natures:
a) a complex criminal case that requires special inquiry, investigation and special collection of evidence
b) a criminal case which has or might have a serious effect upon public order and moral, national security, international relations or the country's economy or finance
c) a criminal case which is a serious transnational crime or committed by an organized criminal group
d) a criminal case in which influential person being a principal, instigator or supporter
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e) a criminal case in which the Administrative Official or Senior Police Officer, who is neither the Special Case Inquiry Official nor Special Case Officer, is the suspect as there is reasonable evidence of crime committed, or being the alleged culprit, or being the accused.
Special cases within the scope of the DSI's authority include 23 offences under the laws provided in the Annex attached to the Notification of the Board of Special Case (No. 7) B.E. 2562 (2019), where there are three offences related to Intellectual Property Rights (IPR) Infringement:
1. The offences under the Trademark Act
The offences punishable under the Trademark Act, B.E. 2534 (1991) and its amendments that have or are well-grounded to have the commission of offences as the place of production, place of distribution, place of purchasing, place of storage or the import into the Kingdom of Thailand, by having in possession of things or goods for use in committing crime, or obtaining from the commission of offence, or having in possession regarded as the offence of that valued at the market price upward of ten million baht, or the case likely to cause the damage value from the commission of offence upward of ten million baht.
2. The offences under the Copyright Act
The offences punishable under the Copyright Act, B.E. 2537 (1994) that have or are well-grounded to have the commission of offences as the place of production, place of distribution, place of purchasing, place of storage or the import into the Kingdom of Thailand, by having in possession of things or goods for use in committing crime, or obtaining from the commission of offence, or having in possession regarded as the offence of that valued at the market price upward of ten million baht, or the case likely to cause the damage value from the commission of offence upward of ten million baht.
3. The offences under the Patent Act
The offences punishable under the Patent Act, B.E. 2522 (1983) and its amendments that have or are well-grounded to have the commission of offences as the place of production, place of distribution, place of purchasing, place of storage or the import into the Kingdom of Thailand, by having in possession of things or goods for use in committing crime, or obtaining from the commission of offence, or having in possession regarded as the offence of that valued at the market price upward of ten million baht, or the case likely to cause the damage value from the commission of offence upward of ten million baht.
Paragraph 3.260, Page 111
Despite the considerable efforts made to tackle enforcement issues, use of unlicensed software in both the public and private sectors, extensive cable and satellite signal theft, and counterfeit goods (that find their way to other countries in Asia, South America and the Middle East, which serve as transit channels), remain significant. These have a chilling effect on the ecosystem for creative content in Thailand, making it a difficult marketplace for the content industry, consumers and other pertinent actors.
Question 33
Does Thailand plan to address or resolve these problems? How?
Answer
Thailand continues to intensify its enforcement efforts, both in the physical markets and online. For example, with regard to the problem of illegal software, the Cabinet had a resolution on 21 May 2019, instructing all government agencies to ensure uses of legitimate software in procuring computers and relevant appliances. In response, the DIP is preparing the Government Procurement Guidelines on the Acquisition of Legitimate Software, which will be distributed to all relevant government agencies in due course. Thailand also encourages uses of legitimate software in the private sector. An example is the "Clean up to Count Down" campaign, which is the cooperation
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4 TRADE POLICIES BY SECTOR
Paragraph 4.9, Page 114
The MOAC follows its 5-year Agricultural Plan (2018-22) and the Organization Plan, both of which are in compliance with Thailand's 20-Year National Strategy (2018-37). The MOAC's plans aim to achieve "secured farmers, prosperous agriculture, and sustainable agricultural resources", where farmers' income is to be increased by more than USD 3,134 by 2022.
Question 34
Please discuss the accomplishments to date under the 5-Year Agricultural Plan, particularly with respect to achieving prosperous agriculture. What were the challenges in terms of implementation? What adjustment measures were made in areas where targets were not met?
Answer
MOAC focus the support on small scale farmers to make prosperity in agriculture. Farmers must be self-sufficient with knowledge of technology, innovation, and agriculture 4.0, especially the young farmers. The challenge is that older farmers are difficult to adapt to the new change. It will take young farmers who are ready to return to their homeland, to support the adoption of e-marketing in operations.
Paragraph 4.10, Page 115
In 2020, the MOAC started implementing the following agricultural policies:
• increasing the irrigation area and improving water management;
• promoting alternative agriculture and integrated agriculture, encouraging organic farming, and replacing chemicals by organic substances to promote food safety;
• expanding markets and encouraging smart farmers to become entrepreneurs, strengthening community enterprises and cooperatives, and developing agricultural processing;
• reducing production costs and promoting technology and the use of agricultural machines, improving efficiency in agriculture logistics, and building agri-technology and innovation centres;
• encouraging rain-making during drought seasons, providing land right titles for farmers, promoting livestock that conforms to market demand, controlling and preventing the outbreak of animal or plant diseases, and simulating substitute plants to reduce water usage;
• building a National Agricultural Big Data Centre; and
• developing an Agricultural Learning Centre where farmers can learn local production programmes.
Question 35
Please elaborate on the services provided by the National Agricultural Big Data Centre. How does its services feed into the implementation of agricultural policies? Please cite specific examples to illustrate its implementation.
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Answer
The National Agricultural Big Data Centre or NABC provide services as follows:
1. Data Services: NABC provides Data Catalogue covering farmer's and agricultural product's aspects throughout the supply chain. These data are beneficial for Government sector in policy planning, private sector in agricultural production planning, farmers in cultivation planning and agricultural price monitoring. The data catalogue also support the big data analytics along with artificial intelligence (AI) to make more accurate in planning and decision making. NABC also introduced Application called "Farm D" and "Raka (price) Farm" to facilitate the farm activities and report agricultural product prices.
2. Analytical Data on Dashboard (data visualization system): NABC provides Agricultural Calendar which contains agricultural production in provincial level in monthly basis to monitor food security and nutrition of the local level. NABC also monitor important products such as rice, maize, cassava, oil palm and rubber.
3. Agricultural Economic Analysis: NABC provides 1) Economic Outlook which contains the quarterly Thai economy data report, and the Thai economy trend in the next year in monthly format. 2) Agricultural Price Index which contains agricultural production index, agricultural price index, farm income index in a monthly format.
4. Natural Disaster Impact Analysis: NABC provide Natural Disaster Impact analysis by monitor disaster situation in the local area, drought impact, below-period rain and farmer's assistance measures, etc.
5. Additional Service: Recently, NABC provide more services for agricultural sectors which are 1) Coaching system for agricultural knowledge transfer 2) Public AI System which is agricultural activity's guideline system 3) provide Open data set to government open data center (data.go.th)
Question 36
How is the Agricultural Learning Centre operationalized? Please describe the selection, funding process and other forms of assistance for farmers to access the programs.
Answer
1. The selection of Agricultural Learning Center for Increasing Agricultural Production Efficiency, Thailand
The Royal Thai Government by the Ministry of Agriculture and Cooperatives has established the Agricultural Learning Center for Increasing Agricultural Production Efficiency (ALC) in every district. The objectives are to use ALC as the center to transfer production technologies, management, and marketing including providing agricultural services and disseminating agricultural information to farmers. In addition, ALCs serve as the platform for government agencies from various units to collaborative work to solve emerging challenges and develop agriculture in accordance with different conditions and needs of each district. At present, 882 ALCs are located in every district across the country. There are 2,646 network centers supporting ALCs consisting of 882 community fertilizer and soil management centers (one district one center), 1,764 community pest management centers (one district two centers), and other network centers such as fisheries, livestock, household account, etc. to provide all relevant agricultural knowledge to farmers.
There are various governmental agencies of the Ministry of Agriculture and Cooperatives collaboratively working to improve ALCs and embrace range of agriculture issues in every field. These agencies are Department of Agricultural Extension, Livestock Department, Fisheries Department, Department of Agriculture, Land Development Department, Cooperative Auditing Department, The Queen Sirikit Department of Sericulture, and Office of Agricultural Economics. ALCs must have a readiness and facilities to serve learners. Furthermore, it is essential to provide the sense of ownership to farmers and communities together with contributing practical knowledge to farmers. ALCs are managed by role-model farmers in their area. Set of knowledge, demonstration plots, and learning stations are developed and prepared to train learners.
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- Role-model farmers: The role-model farmers are farmers who have a successful experience on agriculture to enhance and develop significant agricultural activities from production, management, to marketing, e.g., increasing productivity, reducing cost, and developing product quality. Furthermore, they are well-known and accepted by their communities, volunteer to implement ALCs' work with family support, have a leadership and are able to collectively work with others.
- Demonstration plots: The plots belong to role-model farmers, used for their farming. The learners study from the real farming of the role-model farmers.
- A set of knowledge: It contains agricultural knowledge and means to solve agricultural problems of communities. This set of knowledge is jointly analyzed and made by role-model farmers, agricultural extension officers, and other partners from various governmental agencies in each community. Thus, set of knowledge have a different knowledge depending on challenges and conditions of each area.
- Learning spots: Learning spots provide specific knowledge consistent with a set of knowledge, e.g., applying fertilizer from soil testing results, seed production, microbial pesticide, agricultural machineries, pest management, etc. Learners studies from lecture from a set of knowledge and practices from learning spots, which foster them to deeply understand and apply to their farms further.
The availability of these components is required for all ALCs. However, ALCs may have other facilities such as buildings for studying, other necessary infrastructures, etc. to respond each community requirement.
2. Funding
The Department of Agricultural Extension has been assigned by the Ministry of Agriculture and Cooperatives to be responsible for development and implementation of ALCs. ALCs are annually budgeted by the Department of Agricultural Extension. The budget spends on below activities.
1) Enhancing capacity of ALCs and network centers
2) Supporting services of ALCs, e.g., organizing the Field day event at every ALCs to transfer agricultural technology and knowledge to farmers
3) Developing farmers through trainings to farmers and chairperson of network centers.
3. Other forms of assistance for farmers to access the program
The Ministry of Agriculture and Cooperatives has other forms and channels to support farmers to access to the program. Line agencies of MoAC also have their learning center such as fisheries learning centers, livestock learning centers, household accounting learning centers, etc. scattering over the country to support the specific knowledge to farmers and being the channels for farmers to access the government's program. The Department of Agricultural Extension, for example, has 50 operation units, e.g., 26 agricultural occupation promotion and development centers (8 highland agricultural extension and 18 others), 14 agricultural technology promotion centers, 9 plant protection centers, 2 agricultural engineering promotion centers, 2 economic insect centers, 1 farm youth promotion center and 10 seed and plant propagation centers. These operation units serve as learning spots and training centers on farm occupation, produce production inputs for use in extension works and for supply to farmers, provide agricultural services and technical advices on farm engagement.
Furthermore, Training and Visit (T & V) approach is used to transfer knowledge and solve agricultural problems to famers. T & V approach has been used in Thailand for over decades and it has been gradually developed for suitability. T & V duties include visiting farmer groups and individuals, holding group meetings, and delivering advice on crops and other problems. T & V team consists of chief of agricultural extension office/agricultural extension officer, expert level, sub-district agricultural extension officer, and partners from other government agencies in that area jointly visit farmers in forms of a group. Then, the team visits individual farmers who may have a particular
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MoAC also has various mobile applications created by line agencies to serve knowledge to farmers. For example, Smart Rice Farm (SRF) is collaboration between Rice Department, and Land Development Department to hand on knowledge on rice cultivation and others related. DoAE Smartcheck Application is made by the Department of Agricultural Extension to inform natural disaster, plant pests and disease, etc. to farmers. DoA research application created by the Department of Agriculture offers DoA researches to people and farmers. Plants for U application made by the Department of Agriculture contributes plant knowledge to increase productivity and quality and reduce the cost investment.
Paragraph 4.13, Page 116
"The World Bank suggested that raising labour productivity and deepening capital in agriculture could facilitate structural transformation. Accordingly, it recommended: developing a better- functioning land rental market; increasing the efficiency and sustainability of irrigation investments; more and better funding of agricultural research and extension programmes; and moving away from commodity support programmes towards a broad-based agricultural and food policy."
Question 37
Is there any pending legislation and recently implemented policy reform or government program in Thailand that addresses these issues on irrigation investment sustainability, land rental market functionality, agricultural research and commodity support to food policy-based transition?
Answer
Royal Irrigation Department (RID) has the water management strategies and we have put them in order of priority for the following water usage activities:
1) Water allocation for consumption
2) Water allocation for preservation of ecology
3) Water reserve for usage in the beginning of rainy season for consumption and preservation of ecology during May to June
4) Water allocation for agriculture (through participatory irrigation management and knowledge sharing basis)
5) Water allocation for industry.
In terms of research, development and innovation for food industry, Thailand has launched "Food Innopolis". For more details, please visit http://foodinnopolis.or.th/en/home.
Paragraph 4.55, Page 127
The Ministry of Energy is in charge of setting government policy for the exploration and extraction of hydrocarbons, and for the production, transmission, and sale of electricity. The Energy Policy and Planning Office (EPPO), in the Ministry of Energy, is responsible for ensuring national energy security by devising energy policies and plans; defining measures for easing and preventing energy shortages; monitoring and evaluating compliance of measures with energy policies; and managing energy data and funds.23 The EPPO took several policy measures during the review period, including the revision and development of the Power Development Plan (PDP) 2018-37.
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Question 38
What plans or targets in accordance with the Paris Agreement are currently in place? Does the Thai government have a plan to increase the share of renewable energy in the existing energy mix of Thailand at this time?
Answer
In accordance with the Paris Agreement, target of CO2 reduction in Thailand's Nationally Determined Contribution (NDC) is 20-25% in the year 2573. Current status of CO2 reduction in Thailand was 57.84 Mt CO2 equal to 15% in 2016 compared to base year 2005. Thailand tends to increase the share of renewable energy to comply with AEDP2018.
Paragraph 4.68, Page 131
According to the EPPO Annual Report, from 2017 to September 2019, exporters of locally produced LPG had to pay a contribution fee to the Oil Fuel Fund of THB 0.70 per kg. The EPPO stated that this was intended to discourage the exportation of locally produced LPG, to avoid domestic shortages. However, LPG exports persisted so, in the second half of 2018, the PTT Public Company Limited, which is the SOE that accounts for the largest share in the oil market in Thailand, suspended commercial exports of LPG at the request of the CEPA.32 The authorities stated that the exportation of LPG is not prohibited anymore.
Question 39
Is the contribution fee paid by LPG exporters still in place with the lifting of prohibition on LPG exports? Please expound on the circumstances that led to the lifting of the ban on LPG exports.
Answer
The circumstances that led to the lifting of the ban on LPG exports was to prevent domestic shortage. However, contribution free by LPG exporters no longer exists.
Paragraph 4.104, Pages 138-139
It should be noted that, in recent years, commercial banks made significant strides in developing and adopting new digital banking platforms to reduce operating costs, improve access to a wider range of financial products, and contribute to promoting financial inclusion. Thai banks have also started to undertake new initiatives to expand in the region as ASEAN Economic Community (AEC) integration and regional competition increase, and AEC member countries prepare for ASEAN-wide liberalization of the banking sector in 2020. For example, one of the top five Thai banks, Kasikornbank, opened locally incorporated banks in Cambodia, China and Lao PDR, and maintains representative offices in Indonesia, Myanmar, Vietnam and Japan.
Question 40
It was mentioned that significant strides on digital banking has been developed and adopted. Was there any regulation on remittance services? What is the legal regime regarding the remittance services in Thailand?
Answer
Cross-border remittance services are subject to the Exchange Control Act and other relevant laws such as Payment Systems Act. According to the foreign exchange regulations, foreign currency can be freely transferred into Thailand. Outward remittances are allowed for any purposes except few specific purposes such as settlement of FX/THB transactions with financial institutions abroad. Transfers for some purposes such as purchase of immovable assets are subject to certain amount limits. (Remittance services through non-bank license i.e. money transfer agent is subjected to certain amount limits)
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Paragraph 4.118, Pages 141-142
During the period under review, changes were introduced to the insurance industry's legal regime in order to modernize it and bring it in line with the rules governing banks and with international standards. The changes included provisions to strengthen the supervisory framework and enhance consumer protection in all aspects of the insurance business. Also, as in the case of banking, there has been a progressive relaxation of restrictions on foreign participation in insurance firms for the purpose of promoting stability of the industry.
Question 41
Under 4.118, it was mentioned that changes were introduced in the insurance's industry's legal regime. Among the changes, was there any distinction between the insurance regulations of foreign and domestic nationals?
Answer
Under insurance legal regime in Thailand, there is no discrimination in both foreign investors and domestic investors. Foreign investors doing businesses in Thailand must be given the same treatment as its domestic investors. However, for the foreign equity and non-Thai directors limitation is in accordance with the laws under Life Insurance Act and Non-Life Insurance Act and its amendment which are divided in three levels as follows:
1) Foreign shareholders are allowed up to 25% and not less than three-fourths of the total number of its directors must be Thai nationals.
2) Foreign shareholders may hold up to 49%, upon a permission granted by the Commission where it deems appropriate and the commission may permit persons of non-Thai nationality to serve as directors in a number exceeding one-fourth, but less than one-half, of the total number of directors.
3) Foreign shareholders may hold more than 49%, upon a permission granted by the Minister of Finance with a recommendation from the Commission, in the following cases:
- A case that the company's standing or operations are of a condition that might cause damage to the insured or the public
- A case to strengthening the stability of the company or the insurance industry.
The consideration of approval foreign shareholder relaxation is case by case basis.
Question 42
What is the legal regime regarding insurance of foreign nationals employed in Thailand?
Answer
Participation of foreign shareholders and foreign directors in insurance company is according to Life Insurance Act and Non-Life Insurance Act. Also, licensing of Agents, Brokers, Actuaries, Loss Adjustors are not required to be Thai Nationality. However, any foreigners who want to work in Thailand might subject to Foreign Business Act and law relating to work permit.
Paragraph 4.134, Page 145
Thailand has been aiming to transform itself into a digital economy; the Government has a vision to maximize digital technologies in all areas of society and the economy. In this context, it began implementing the Thailand 4.0 policy in 2016. Since February 2020, foreign investment in digital services and digital parks no longer requires prior approval from the MDES.
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Question 43
How does the Government of Thailand ensure competition and protection of consumer welfare in the telecommunications industry? Are there any other action plans that Thailand is looking to implement to address the digital divide, given the more critical role of connectivity at present?
Answer
Competition in Telecommunications Market
The regulation over the competition of telecommunications business shall comply with the Trade Competition Act B.E. 2560 (2017). The regulation of NBTC shall be under the principles of the four notifications, which are:
1) Notification of the NBTC on Measures to Prevent the Monopoly or Unfair Actions in the Telecommunications Business B.E. 2549 (2006).
2) Notification of the NBTC on Criteria and Procedures to Identify the Significant Market Power in the Telecommunications Business B.E. 2557 (2014).
3) Notification of the NBTC on Definitions and Scopes of Relevant Telecommunications Market (Vol. 2) B.E. 2563 (2020).
4) Notification of the NBTC on Merger and Acquisitions Regulation in Telecommunications Business B.E. 2561 (2018).
Currently, the Office of NBTC is reviewing the procedures to identify the Significant Market Power in the telecommunications business by considering mainly on the change of technology and market demand, as well as the condition of the competition.
Consumer Protection
The National Broadcasting and Telecommunications Commission (NBTC) of Thailand has the authority to supervise telecommunications business for the protection of the service users, pursuant to the Telecommunications Business Act B.E. 2544. The service users (consumers) have the right to lodge a petition to the NBTC in case of suffering from the telecommunications operators or the licensees, the right to request information of his or her service usage from the licensees and the right to use service from his or her own telecommunications equipment, but not limited to the right of freedom and privacy to communicate by means of telecommunications. In case licensees violate or fail to comply with this regulation, the NBTC has the power to order the licensees to terminate such violation, or to correct and act in appropriate manner within a specified period. Should the licensees not comply, the NBTC has the authority to suspend or revoke the license.
Moreover, the NBTC is obligated to protect consumer rights against unfair contract terms. In accordance with Notification of the NBTC on Standard Contracts for Telecommunications Service Provision B.E. 2549, the NBTC has the authority to examine and approve the standard contracts provided by telecommunications service providers to ensure that those contracts shall contain necessary contract terms and shall be devoid of unfair contracts that exploit service users.
The NBTC also vigorously encourages the service users to be aware of their rights. The NBTC has actively instructed the service providers to inform of users' rights by publicizing the notifications on the rights of mobile-phone users and fixed-line Internet users at their service-providing premises. This serves to ensure that the service users are well aware of their rights with precision and clarity.
The Telecommunications Consumer Protection Bureau (TCP) is an organization to be in charge of protecting the rights of service users, under the authorization of the NBTC. The roles and missions of TCP shall be elaborated as follows:
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The NBTC's Telecommunications Consumer Protection Bureau (TCP)
The Telecommunications Consumer Protection Bureau (TCP) has been established to have its responsibilities concerning the measure for the protection of freedom rights of the citizen, for not being exploited by the telecommunications operators, for promoting people's rights, freedom and equity so that they are able to access the spectrum and telecommunications services, setting up criteria and procedures and handling of matters related to consumer protection, receiving and managing complaints, and resolving disputes between telecommunications services providers and consumers, as well as giving support on administrative services to the Sub-committee on Telecommunications Consumer Protection.
TCP also supervises and acts upon the activities regarding consumer protection in accordance with:
1) NBTC's Regulation on the mediation of disputes between telecommunications business licensees and complainants B.E. 2555 (2012).
This regulation is expedient to determine the mediation process for considering the complaints between the telecommunications business licensee and the complainant in order to solve the problems of the parties. Adding the channels for resolving disputes and giving the parties the opportunity to settle the dispute promptly and satisfactorily. This can also maintain good relations among concerning parties and create balance in the development of telecommunications as well as increasing the efficiency of consumer protection.
2) Notification of the NBTC on the process for receiving and considering complaints on telecommunications business B.E. 2559 (2016).
This Notification is expedient to revise Notification of NBTC on the process of complaints receiving and considering for the protection of the users' benefits, particularly the rights and freedoms of people. It also ensures that the users will not be taken advantage of from business operators. In order to consider and resolve complaints, the protections encompasses personal information, privacy rights, and freedom of the individuals to communicate by means of telecommunications. It will be convenient, fast, and aligned with the provisions of law on the organization to allocate radio frequency and to regulate radio broadcasting business and telecommunications operation.
TCP also establishes a channel for receiving complaints for the consumers through:
(1) Email: [email protected] (2) URL: http://tcp.nbtc.go.th (3) NBTC Call Center Dial 1200 (4) SMS to 1200 (5) Fax: 02 2279 0251
The NBTC's roles in bridging digital divide
The NBTC's roles to bridge Thailand's digital divide proceeds with a promising progress. So far, the NBTC has been working, with ardour and vigour, to fulfil the Universal Service Obligation (USO) and reduce the gap in telecommunications access. Pursuant to the Section 27 (12) and Section 50 of the Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 (2010) and Section 17 of the Telecommunications Business Act B.E. 2544 (2001), the NBTC is obligated to ensure the universal basic accessibility to the telecommunications service for all walks of lives in Thailand – covering both spatial and social dimensions.
The NBTC adopts the framework based on Notification of the NBTC on the Universal Service Masterplan No. 2 B.E. 2560-2564 (2017 – 2021). The Masterplan is set to provide telecommunications service in areas including rural, low profit-yielding, service-insufficient, service-lacking, but not limited to services in religious sites, hospitals, and social service agencies. It also requires the NBTC to provide public telecommunications service access to the groups of individuals, comprising the underprivileged, the disabled, children, the elderly, and other disadvantaged groups.
Another key framework which the NBTC operates is the Telecommunications Masterplan No. 2 B.E. 2562-2566 (2019 – 2023). The Telecommunications Masterplan accentuates the NBTC's
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1) Provision of Basic Telecommunications Services in Geographical Dimension
2) Provision of Basic Telecommunications services in Social Dimension
3) Promoting and Supporting Digital Technology Skill Development to Encourage the Target Group to Utilize Telecommunications Services Efficiently with Social Responsibility in order to Empower the People, Community, and Society to Support Digital Society Development.
Moreover, the NBTC is expediting the provision of mobile phone service and high-speed internet service projects in the marginalized areas (Zone C+), as well as the high-speed internet service projects in remote areas (Zone C). These plans and operations therefore serve to alleviate the inequitable access to telecommunications and effectively bridge the ongoing issue of digital divide in Thailand.
Paragraph 4.172, Page 151
Improving infrastructure and connectivity is a core objective of EEC plan, aimed at transforming the eastern provinces into a leading ASEAN economic hub. To improve connectivity by air, Thailand is expanding the U-Tapao international airport in the Rayong province. The objective is to construct a new passenger terminal and a second runway to increase the airport's passenger capacity to 3 million people.
Question 44
Aside from the U-Tapao airport development, how does the government plan to attract more aircraft-related investments, such as for maintenance, repair and overhaul (MRO) and components manufacturing, either for commercial or defense segments?
Answer
Thailand is located at the strategic location as the center of highest growth in aircraft movements region which brings to high demand for MRO and aircraft components and spare parts as well as the human resource development is undertaking to meet the investors' requirements. Furthermore, the foreign substantial ownership and effective control restriction under the Thai Air Navigation B.E. 2497 has been relaxed subject to certain conditions.
Moreover, Thailand Board of Investment promotes the manufacture or repair of aircraft, or aircraft parts. For more detail, please visit our website at www.boi.go.th.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT
Paragraphs 3.5-3.7, Page 6
Thailand has become a middle-income country since 1976. In order to overcome this problem and move up to high-income country, Thailand urgently needs to reform its economic structure and enhance country's competitiveness under the dynamic digital era. Thus, the Government has set "10 Targeted Industries" to be Thailand's new economic growth engines that will help Thailand achieve its structural reform by shifting Thai economy to be high-valued, high technology and innovative based. The 10 targeted industries have been categorized into two groups as "First S-Curve Industries" - the upgrading of five existing industries, and "New S-Curve industries" - the development of new high-technology and innovative industries.
In accordance with Thailand 4.0 policy, the Board of Investment (BOI) announced 7-year investment promotion strategy (2015-2021) with an aim to lead the country towards innovation-driven economy
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Question 45
Given the identification of the 10 Targeted Industries as well as the formulation of the 2015-2021 Investment Promotion Strategy, does Thailand plan to maintain or restructure these policies to take into account COVID-related adjustments such as the shift in global value chains for essential goods and services? If so, how would these change the current outlook of priority sectors as projected in the 2015-2021 Investment Promotion Strategy?
Answer
Thailand continues to invest in the 10 targeted industries (the S-curve industries). Besides aligning with the 20-year National Strategy, the S-curve industries have capabilities to help Thailand recover from the pandemic. However, COVID-19 has hit the Thai economy hard. Therefore, the government specifically aims to promote industries that are ones of the country's strengths, including food, electrical and electronics, medical equipment, and integrated medical service (the medical hub). The targeted industries also have a high demand in the global market.
Moreover, Thailand Board of Investment plans to review investment promotion policy in response to changing situation and environment. Priority sectors would be the sectors that Thailand has high potential and have opportunities to grow in the pandemic situation.
Paragraph 3.12, Page 7
Additionally, the MOT has launched Thailand's Transport Infrastructure Development Strategy 2015-2022, which is a framework to efficiently implement and monitor transport infrastructure projects over the next eight years. The essence of the infrastructure development plan comprises of five plans as follows: (1) Intercity rail network development, (2) Improving public transport networks and service, (3) Enhancing connectivity between key domestic production bases and neighboring countries, (4) Increasing water transport network, and (5) Enhancing air transport capability.
Question 46
On infrastructure development, how did the COVID-19 pandemic affect Thailand's infrastructure development plans and which projects were set aside or pushed to a later date to accommodate infrastructure requirements in light of the "new normal"?
Answer
The COVID-19 pandemic does not directly affect Thailand's infrastructure development plans. Transport infrastructure projects usually take long time from planning, design, construction and operation therefore the COVID-19 pandemic does not affect the projects that are in the pipeline. Currently, although demand for travel, especially air transport has not returned to normal, it is an opportunity for related agencies to accelerate the development of infrastructures which has been delayed or overcapacity such as airports and double track rail network.
In addition, the outbreak of COVID-19 led to higher use of digitization such as Port Authority of Thailand (PAT) has implemented "National Single Window" (NSW) system which simplifies the documentary requirements, procedures and formalities associated with arrival and departure of ships via a single electronic gateway in order to facilitate maritime traffic and provide efficient and environmentally sound shipping. During the pandemic, the NSW plays a crucial role to resolve disruption in shipping while meeting the health and safety measures to minimize the transmission of COVID-19 among maritime personnel, as well as maintain the efficiency of maritime trade and transport.
At the same time, Department of Land Transport initiated DLT Smart Queue application which assists in pre-booking for DLT services, e.g. driving license, car registration, and DLT Vehicle Tax.
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Paragraph 3.21, Pages 8-9
To enhance Thailand's competitiveness and improve Thailand's ease of doing business, since 2016 the Government has initiated the project called "Regulatory Guillotine" by hiring Thailand Development Research Institute (TDRI) to review Thailand's existing laws, rules, and regulations to ensure efficiency, as many laws have become redundant, obsolete, or incompatible with current situations. The first stage of the project is "Licensing Guillotine", focusing on streamlining the complex licensing and permits issuing processes and regulatory procedures to facilitate people and businesses.
Question 47
Please cite the accomplishments since 2016 of the "Regulatory Guillotine" project in terms of improving ease of doing business in Thailand. Has the review led to changes or reforms in specific laws and regulations? If so, what are these?
Answer
Thailand's ease of doing business rankings under various indices have consistently improved since 2016. This accomplishment was not solely attributable to the “regulatory guillotine” project, but more a collaboration of several efforts by both the public and private sectors, all under the same vision laid out by the Government to eliminate unnecessary burden and costs for undertaking businesses in Thailand. In fact, the final paper of proposals for regulatory guillotine prepared by the Thailand Development Research Institute (TDRI) was submitted to the Strategic Transformation Office (STO) in the year 2020. Nonetheless, prior actions, for instance, the recent passage of “digital transformation” laws, such as the Digital Government Act, Electronic Transactions Amendment Act, and numerous other implementing regulations, were in alignment with the direction and objectives of regulatory guillotine. As a way forward, the Government has now mandated responsible agencies to examine and review their licensing processes based on the findings of TDRI by the year 2022.
Paragraph 3.26, Page 10
National Single Window (NSW) has been operating since 2008 and officially implemented in 2011 with the establishment of two secure data centres serving the exchange of electronic documents among government agencies and business sectors. It enables multiple transactions including G2G, B2G/G2B, and B2B and comprises various services to facilitate the stakeholders to reach the single point of entry, single submission to relevant agencies, and accommodate the regulatory authorities to perform the single decision making in accordance with international standard for Single Window. There are currently 37 government agencies linked through NSW and 19 of them have expanded the services to business. The prominent systems are launching to allow the traders utilizing single declaration to apply for the import/export permission and certification, e.g. hazardous substance importation, rubber exportation, certificate of origin, and SPS certificate
Question 48
Please cite the significant accomplishments of the NSW in terms of facilitating trade.
Answer
Since Thailand NSW has been launched, the number of electronic transactions regarding import and export procedures is greater than 100 million documents and increasing approximately 5% every year. It indicates the intent participation of the government agencies to implement the electronic systems as well as the system integration linked through Thailand NSW in order to simplify and facilitate the business activities.
Question 49
Please also discuss stakeholders (exporters, importers) views in terms of utilizing the NSW.
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Answer
Thai Customs established Thailand NSW as a platform for trade and transport information exchange which allows the entrepreneur (importers, exporters, and relevant stakeholders) to connect with the regulatory agencies, financial institutes, and business sectors via a single channel. The current NSW utilization is acted by up to 10,000 subscribers representing more than 100,000 traders. The NSW is continually developed to provide various services upon traders' requirements and the national strategic plans. Thai NSW is also conducted the annual assessment to evaluate what are needed to be enhanced to meet the users' satisfactory.
Question 50
What services are still to be included in the full implementation of the NSW?
Answer
The service implemented in the initial stage has been purposed to exchange the electronic documents related to the customs formality. Afterwards, most relevant government agencies have provided the services for the application and issuance of electronic permits or licenses. The additional services are now being developed and implemented are to enable the single entry, single submission, and the simplification of the import/export procedures for the strategic and industrial products.
Paragraph 3.70, Page 19
The Roadmap covers six areas, namely: (1) IP creation, (2) IP protection, (3) IP commercialization, (4) IP enforcement, (5) geographical indications, and (6) genetic resources, traditional knowledge and traditional cultural expressions. Since its adoption, the Roadmap has been providing the direction for the development of the nation's IP system and is currently being implemented by the relevant agencies, with the Department of Intellectual Property of the Ministry of Commerce (DIP) being the main responsible agency.
Question 51
What is the long-term objective of Thailand for genetic resources, traditional knowledge and traditional cultural expressions under the Roadmap?
Answer
One of the long-term objectives is that an appropriate protection of GR/TK/TCEs including the principles of benefit-sharing and prior informed consents is put in place. This may, among others, include the development of relevant laws, regulations, and databases.
OTHER QUESTIONS
Question 52
The governments of the US, Japan and South Korea are providing incentives to re-shore production of multinational companies from China. Nearby Southeast Asian countries, such as the Philippines and Thailand, among others, are in a position to capture these investment opportunities in manufacturing to further deepen their participation in the global value chains. Is there a strategy from the government of Thailand on how it aims to capture some of these investments, either through a more active promotions campaign or implementation of new incentives for these companies? Is Thailand espousing selective company strategy or industries to capture these investments from China? And if so, what would these be?
Answer
Having a geographical advantage, Thailand is in the center of the region for trade and supply. Hence, the government follows the National Strategy to create opportunities to attract investment in future technology and innovation through incentives, which will add high value to products and services. The government also builds connections and ecosystem that benefit investment, for example,
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However, currently there is no specific promotion campaign for re-shore production of MNCs or selective companies or industries. BOI has launched Thailand Plus package that aims at generally expediting large scale investment not limited to any situation.
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RUSSIAN FEDERATION
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
1 OVERVIEW
Page 4, Paragraph 1.3
Thailand is fully committed to the World Trade Organization (WTO) and strongly supports the rules-based multilateral trading system providing for stability and sustainability of international economic growth. In 2019, Thailand played importance role in both regional and international trade cooperation. Thailand was the chair of ASEAN Committee in Geneva (ACG) as an ASEAN's chairmanship and the chair of General Council. In addition, Thailand has successfully concluded two FTAs (Thailand-Chile FTA, and ASEAN-Hong Kong, China FTA) and is currently negotiating several bilateral and regional trade agreements.
Question 1
It seems that the commitments in certain services subsectors (distribution; educational; tourism and travel-related; recreational, cultural and sporting; and transport services) are weaker in Chile-Thailand FTA in contrast to GATS. Could you please explain the rationale for weakening such commitments?
Answer
The commitments if trade in services under Thailand – Chile Free Trade Agreement (TCFTA) has objectives to offer freer trade in services and movement of natural person to those of WTO in the form of WTO plus agreement. The subsectors committed under TCFTA have been shown in fewer numbers because those are selected subsectors agreed by both sides for offer better accesses comparing to those listed under GATS. Moreover, these services commitments under TCFTA, such as distribution services, have clearly demonstrated freer access to Thai as well as Chilean markets by allowing majority of foreign equity participation in some service subsectors, whereas under GATS, foreign equity holders must not exceed 49% of the registered capital for all of the committed services.
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.2 Sectoral Policies
3.2.6 Intellectual property
Pages 20-21, Paragraph 3.80
Thailand also sees the importance of the inclusion of local communities within the IP system. In this connection, the DIP has been promoting geographical indications as tools for local farmers and producers to increase economic value of their products. Provinces across the country have been encouraged to have their products registered as GI products, and as of June 2020, 76 out of 77 provinces have at least one GI registered, with a total of 126 GIs. The DIP has also sought to promote the registrations of Thai GIs in foreign countries, which resulted in Thai GIs now being registered in the European Union (Thung Kula Rong-Hai Thai Hom Mali Rice, Doi Tung Coffee, Doi Chaang Coffee, and Sangyod Muang Phatthalung Rice), Viet Nam (Isan Indigenous Thai Silk Yarn), Indonesia (Lamphun Brocade Thai Silk), and India (Lamphun Brocade Thai Silk).
Question 2
Could Thailand please further elaborate on the existing protection tools for geographical indications (GI) in Thailand and experience of cooperation with foreign countries in the field of GI protection?
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Answer
Thailand has a sui generis system for the protection of GIs under the Geographical Indications Act B.E. 2546 (2003). The cooperation activities with foreign countries which the Department of Intellectual Property have carried out in this area include exchange of information on relevant laws and regulations, practices, experiences, and knowledge. The cooperation also extends to the GI-site visits, GI awareness raising, and GI promotion activities.
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
1 ECONOMIC ENVIRONMENT
1.3 Developments in Trade and Investment
1.3.1 Trends and patterns in merchandise and services trade
1.3.1.1 Merchandise trade
Page 26, Paragraph 1.41
Thailand remains a predominantly outward-oriented economy, as indicated by the high ratio of its trade (exports and imports) of goods and services to GDP. However, this ratio decreased over the last decade, from a peak of 150% in 2008 to 110% in 2019. The authorities explained that this was the result of Thailand's policy to maintain potential economic growth while expanding the domestic economy and reducing its high dependency on international trade. In 2019, Thailand's share in global merchandise exports was 1.6%, and its share in world merchandise imports stood at 1.5%.
Question 3
Could Thailand please elaborate on the specific measures that Thai government is going to take to execute this policy?
Answer
The high international trade dependency rate results in fluctuation of the Thai economy, Thai government pays attention to balance between domestic and international sector. The government implements policies and measures in order to promote local economy such as establishing Border Special Economic Zone for developing border province economy, implementing fiscal policy both government spending and tax reduction/tax refund for encouraging domestic consumption and tourism, as well as strengthening grassroot economy.
Thailand has remained a predominantly outward-oriented economy and export is a key role to drive economy. Ministry of Commerce continues to enhance economic relationship with trading partners in order to maintain market opportunities for existing markets and expand new potential markets.
2 TRADE AND INVESTMENT REGIMES
2.2 Trade Policy Formulation and Objectives
Page 35, Paragraph 2.12
Thailand's trade policy is formulated within the broader framework of the 20-Year National Strategy (2018-2037) and the NESDP 2017-2021. In this context, the MoC has issued its own action plan for 2020-2022. In addition to the objectives and strategies that have guided trade policy since the last Review, the current version of the MoC Action Plan includes the objective of "Enhancing Capacity Building and International Development Cooperation", aimed at increasing Thailand's capabilities and competitiveness in order to expand its presence in foreign markets, and at enhancing its economic partnerships with key trading partners (Table 2.1). To this particular end, the Action Plan sets out three implementation guidelines: (i) expansion of Thailand's foreign markets by encouraging Thai enterprises to increase their business in foreign countries through activities such as trade fairs
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Question 4
The Secretariat's Report states that Thailand's authorities promote border and cross-border trade through marketing activities that encourage trade and investment in Thailand's border provinces and special economic zones. Could you please specify what steps will Thai government take to achieve stated goal and which industries will be affected by the measure?
Answer
In 2015, Thailand commenced the establishment of 10 Special Economic Zones (SEZs) in 10 key border provinces, namely Tak, Mukdahan, Sakaeo, Trat, Songkhla, Chiang Rai, Nong Khai, Nakhon Phanom, Kanchanaburi, and Narathiwat with the ideas that SEZs will become economic gateways connecting with the neighboring countries, and the people will have better quality of life. The objectives of SEZs are: (1) prosperity contribution to border areas, (2) increase in and improvement of quality of life, and (3) solving of security problems.
The Ministry of Commerce realizes the importance of boosting trade in Thailand's border provinces and improving the competitiveness of Thai entrepreneurs. Therefore, the border trade promotion between Thailand and neighboring countries events have been held in order to promote trade and investment cooperation and help increase economic growth in the local areas. Such activities included:
1) Border trade exhibition by Thai entrepreneurs and entrepreneurs from neighboring countries;
2) Customized courses emphasizing capacity building for Thai entrepreneurs, such as, developing tourism products for export, and New Normal E-Commerce; and
3) Business matching event between Thai entrepreneurs and entrepreneurs from neighboring countries.
Furthermore, the Young Entrepreneur Network Development Program or YEN-D was initiated to help establish business networking among potential young entrepreneurs from Thailand and neighboring countries. During the past five years, there were over 1,400 Thai and foreign entrepreneurs joining in the program, raising over THB 5,200 million in trade value. The Ministry of Commerce will continue to promote the aforementioned activities in order to increase trade and investment in the border areas.
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2 TRADE AND INVESTMENT REGIMES
2.3 Trade Agreements and Arrangements
2.3.3 Other agreements and arrangements
2.3.3.2 Asia-Pacific Economic Cooperation (APEC)
Box 2.1 Thailand's Bogor Goals Progress Report (September 2018)
Pages 42-43
Question 5
The Secretariat's Report states that Thailand's government representatives have upheld foreign ownership restrictions remained in some areas. Could you please provide the full list of restrictions for foreign business owners in Thailand?
Answer
Please refer to Table 2.5 (Businesses restricted for foreign investment under the Foreign Business Act) in the Secretariat Report.
2 TRADE AND INVESTMENT REGIMES
2.4 Investment Regime
Table 2.5 Businesses restricted for foreign investment under the Foreign Business Act
List 3 - Businesses in which Thai nationals are not yet ready to compete with foreigners
Pages 45-46
Question 6
The list of restrictive measures seems to be quite large. Could Thailand please clarify whether there are any plans to decrease the number of businesses, in particular, from List 3?
Answer
The Ministry of Commerce by Foreign Business Commission reviews categories of businesses in the Lists annexed to the Act annually. Since 2013, the Ministry of Commerce has issued four Ministerial Regulations Prescribing Service Business Not Subject to Application for Foreign Business Permission covering 40 business categories such as securities business under the law on securities and securities exchange, insurance business under the law on insurance, financial institution business, and representative office/regional office.
To review the regulated businesses under the FBA, the regulation promulgation process is required to hold public hearings from stakeholders and sector regulators are held. The result based on pros and cons usually requires sufficient information for the Commission to remove the regulated businesses from the list.
2 TRADE AND INVESTMENT REGIMES
2.4 Investment Regime
Page 46, Paragraph 2.47
Land ownership by foreign individuals and legal persons is regulated under several laws, i.e. the Land Code, the Industrial Estate Authority of Thailand Act, the Investment Promotion Act, and the
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Condominium Act. In general, under the Land Code, a foreign company or a Thai company with foreign capital in excess of 49% may not own land in Thailand, unless the company is promoted by the BOI or the land is on a government-approved industrial estate, and provided certain conditions are met. A foreign company that is promoted by the BOI may apply for land ownership under Section 27 of the Investment Promotion Act; if the land acquisition is approved, the use of the land is limited to the activity being promoted. A foreign company that is allowed to undertake industrial or commercial activities in an industrial estate will be granted the right to own land for the business undertaking and commerce under Section 44 of the Industrial Estate Authority Act (1979) and its revisions. Under the Condominium Act, foreign individuals and companies may hold ownership in a condominium, provided they do not own more than 49% of the total area of the condominium unit.
Question 7
Could Thailand please explain the expression "domestic companies which are deemed foreigners" from your Schedule of specific commitments in services (document GATS/SC/85, page 3). Does it refer to all Thai companies with foreign capital in excess of 49%?
Answer
Yes.
2 TRADE AND INVESTMENT REGIMES
2.4 Investment Regime
Page 47, Paragraph 2.50
Thailand has 36 bilateral investment treaties in force, one of which (with the United Arab Emirates) came into force during the period under review. The country also maintains 61 double taxation treaties (DTAs), 3 of which entered into force since the last Review (with Cambodia, Ireland and Tajikistan); previously existing DTAs with India and Singapore were revised during the review period, and a new DTA with the Philippines was concluded and came into force in 2018 (Box 2.2).
Question 8
According to UNCTAD, the last Bilateral Investment Treaty (BIT) that Thailand has signed so far was with UAE on 23/02/2015. Could you please explain why Thailand has not concluded any new BITs since 2016?
Answer
Since 2017, Thailand has suspended all BIT negotiations in order to revise the BIT Model to take into account new developments in the international investment landscape and to further improve clarity of ISDS procedures. Since then, Thailand has been coordinating with UNCTAD and holding internal consultations among line agencies to improve the BIT Model which was recently concluded in 2020.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.2 Tariffs
3.1.2.3 Applied tariff
Pages 54-55, Paragraph 3.28
According to Thailand's Tariff Schedule for 2020, provided by the authorities and also notified to the IDB, the applied rates on a number of tariff lines are higher than the bound rates (Table 3.4). The
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Question 9
According to the report, Thailand applies for some tariff lines rates that are higher than its bound rates under the WTO obligations. Could Thailand please explain the reasons for such measures? How do these measures comply with the Thailand's WTO obligations?
Answer
Thailand's applied tariff rates under The Ministry of Finance RE: Exemption Duty, Decreasing and Increasing Customs Duty Tariff rate under the obligations of Marrakesh Agreement Establishing The World Trade Organization, dated 10 November B.E. 2560 (2017) totally comply with the bound rates under WTO, while applied tariff rates under other Notifications besides the said Notification are applied to non-WTO members. The exporters/importers from WTO member countries must indicate their origin during the customs procedures in order to get the WTO applied tariff rates.
Additionally, according to the notification, Thailand committed tariff rates for Barley other than seed under the tariff code 1003.90.00 at 27%, for Other cereals under the tariff code 1008.90.00 at 27%, for Toothpicks of bamboo under the tariff code 4421.91.60 at 20% and for Toothpicks of wood other than bamboo under the tariff code 4421.99.80 at 20%, all in ad valorem rate. When concerned products imported from WTO member's country, the rate as mentioned above will be applied.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.2 Tariffs
3.1.2.5 Tariff exemption
Page 55, Paragraph 3.30
Tariff reductions and exemptions for the importation of machinery, equipment and materials have been maintained, as the Government tries to support the development of local industry, through incentive schemes provided by the Board of Investment and the Revenue Department, among others (Section 3.3.1).
Question 10
Could Thailand please elaborate on the conditions and eligibility requirements for the tax exemptions?
Answer
Under the investment promotion scheme of Thailand's Board of Investment, the benefit from the exemption from the payment of import duties will be granted to promoted juristic persons. The utilization of this benefit is on voluntary basis, investors can choose whether to use local machinery/materials or imported machinery/materials. However, the imported machinery/materials that can enjoy this benefit must be in consistence with the approved production process of the promoted activity.
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3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.2 Tariffs
3.1.2.5 Tariff exemption
Page 55, Paragraph 3.30
Tariff reductions and exemptions for the importation of machinery, equipment and materials have been maintained, as the Government tries to support the development of local industry, through incentive schemes provided by the Board of Investment and the Revenue Department, among others (Section 3.3.1).
Question 11
Could Thailand please specify the reasons for applying non-automatic import licensing requirements on tires of rubber for buses and trucks? What are Thailand's plans for liberalization of this measure, if any?
Answer
To ensure its appropriateness and compatibility with the current tire trade and manufacture circumstances. There is no plan for termination of this measure.
Question 12
What is the role of automatic licensing regarding a wide range of products in the context of people's life and health protection and environment preservation?
Answer
The Export and Import Act B.E. 2522 (1979) gives the authority to the Minister of Commerce with the approval of the Cabinet to issue import – export measures of goods for economic stability, public benefit, public health, national security, peace and order, good morals or any other interests of the State.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.5 Anti-dumping, countervailing, and safeguard measures
3.1.5.1 Anti-dumping and countervailing measures
Pages 61-62
Question 13
Thailand informs that some changes were introduced to the Antidumping and Countervailing Act. Could Thailand please explain the main novelties in trade remedies procedures? How could they potentially affect exporters' rights? How does Thailand ensure transparency when applying such remedies, in particular while conducting antidumping and safeguards investigations? Could Thailand please indicate criteria for it?
Answer
The amendment to the Anti-Dumping and Countervailing Act does not affect the Anti-dumping and Countervailing procedures which are conducted in compliance with the ADA and SCM.
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The main novelty is to introduce the new chapter related the Anti-circumvention. This new chapter covers the factors need to be considered and the investigation process. Investigation shall be concluded within nine months and can be extended to another three months. If circumvention is found, Anti-dumping duties not exceeding the residual anti-dumping duty may be extended to imports from companies which circumvent the measure in force.
Question 14
Since 2014, Thailand government has implemented an Adaptation Plan in respect of the metallurgical industry of Thailand introduced in conjunction with the application of protective measures. The Plan is designed for 5-year period (up to 2019) and is aimed at facilitating the process of economic adaptation of the metallurgical industry, increasing its competitiveness in the domestic and foreign markets. Considering current sunset review of the anti-dumping measure in force for Russian products, we kindly ask Thailand government to provide the results of the implementation of the Plan within the framework of the present TPR.
Answer
Domestic industry do not have to complete an adaptation plan when request to extend the AD measure. However, if the domestic industry decided to send in its adaptation plan along with the petition it would be confidential.
Question 15
Could Thailand please provide a factual basis for measures that the government takes in respect of domestic industry in order to avoid global steel overcapacity? Does Thailand take into account the global steel overcapacity while elaborating domestic policy and programs for this industry?
Answer
Thailand was also affected by the global steel overcapacity problem. The increasing number of imported products causing an excess supply and domestic prices shrink problems. The local steel industry thus cannot produce at full production capacity, resulting in higher production cost and loss of competitiveness. In order to mitigate the impact, The Ministry of Industry has been trying to reduce the global steel overcapacity production problem in Thailand by issuing "Ministry of Industry's Notification" to prohibit a new establishment or expansion of a factory for concrete reinforced steel bars and billets to raise production capacity of the industry to the optimum point.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.2 Measures Directly Affecting Exports
3.2.4 Export support and promotion
3.2.4.3 Tax and duty compensation
Page 67, Paragraph 3.72
Exports of goods manufactured in Thailand continue to be eligible for tax coupons, which may be used to pay taxes and duties. The scheme is regulated under the Tax and Duty Compensation of Exported Goods Produced in the Kingdom Act B.E. 2524 (1981). In addition to goods exported to other countries, the scheme also covers goods sold in Thailand to government agencies or state enterprises under foreign loans or foreign aid programmes, and goods sold to international organizations that are entitled to tax and duty exemptions.
Question 16
Could Thailand please provide more detailed information regarding this mechanism? How does it comply with the Thailand's WTO obligations? Which sectors of Thai economy are affected by this measure?
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Answer
Thailand's tax and duty compensation for exported goods is under Tax and Duty Compensation of Exported Goods Produced in the Kingdom Act B.E. 2524 (1981) (http://www2.fpo.go.th/FPO/modules/Content/getfile.php?contentfileID=14327) which complies with Annex I (i) and Annex II (1) of Agreement on Subsidies and Countervailing Measures.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.2 Measures Directly Affecting Exports
3.2.5 Export finance, insurance, and guarantees
Page 70, Paragraph 3.84
EXIM Thailand offers its credit and insurance products at market rates based on risk, in order to cover its own costs and generate profits. Under the Export-Import Bank of Thailand Act B.E. 2536 (1993), any severe loss incurred by EXIM Thailand from export-credit insurance or business operations approved by the Government is to be compensated by the Ministry of Finance through the allocation of funds from the Government's budget.
Question 17
Could Thailand please provide information on the amounts compensated by the Government of Thailand to EXIM Bank in 2017-2019? What is meant by «severe losses» that serve as a basis for a compensation.
Answer
Since no severe loss occurred in 2017-2019, EXIM Thailand did not request for any compensation from the Government of Thailand during that period.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.1 Incentives
Page 71
Question 18
Could Thailand please provide more information on the ongoing FTA negotiations with Turkey, Pakistan and Sri Lanka? What are the possible results of these negotiations?
Answer
Thailand-Turkey
Thailand and Turkey started negotiations for a Free Trade Agreement in 2017. The first phase of the agreement negotiations would only cover trade in goods, while investments and trade in services will be incorporated into the free trade agreement in the next stage. The 6th round of negotiations was held in December 2019, while the next round had to be postponed due to the recent pandemic. The on-going negotiations are focusing on Market Access and Rules of origin. Customs Procedures and Trade Facilitation as well as economic cooperation have been concluded where other areas such as TBT, SPS, Trade Remedies, and legal issues are in much progress. The conclusion of this FTA is expected in 2021.
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Thailand-Pakistan
Thailand and Pakistan launched FTA negotiations in 2015 with trade in goods as the first negotiation agenda. To date, 9 rounds of negotiations have already been taken place with the conclusion of 12 chapters out of 13 chapters under the FTA pact. The negotiations have already concluded the tariff reduction modality. The next negotiation round will be held after Pakistan is ready to exchange the offer lists. The two countries aim to sign the FTA pact in 2021.
Thailand-Sri Lanka
Thailand and Sri Lanka started negotiations for a comprehensive Free Trade Agreement in 2018 covering Trade in Goods, Trade in Services, investment and economic cooperation. The 2nd round of negotiations was held in September 2018, two months after the kick-off negotiation in July 2018. The next round, however, was held back by the newly elected Sri Lankan government. The negotiations will be resumed once Sri Lanka has a new negotiating committee.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.2 Standards and other technical requirements
Pages 82-85
Question 19
What criteria does Thailand use in order to prioritize countries and goods for a MRA?
Answer
Before signing a MRA with any country, TISI would prioritize the countries and goods by considering the government policy, international trade volume, and comparing our technical regulations with those of the member countries.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.6 Competition policy and price regulation
3.3.6.4 Price regulation and control
Page 103, Paragraph 3.217
The 229 goods and services on the price monitoring list are watched over by the Department of Internal Trade. The list is further subdivided into three categories: (i) the sensitive list; (ii) the priority watch list; and (iii) the watch list. Products on the sensitive list are subject to daily monitoring; those on the priority watch list are subject to monitoring twice a week; and those on the watch list, every 15 days or every month. For the 56 goods and services currently on the price control list, the manufacturers or services suppliers must get approval from the CPP before raising prices, or give advance notice of a change in price. The price control list covers essential items for daily use, such as food and consumer products, farm-related products (fertilizers, pesticides, animal feed, tractors, rice harvesters), construction materials, transport equipment, paper, petroleum, and medicines. Delivery services for online shopping were added to the control list in 2017, and medical services in 2019. In March 2020, face masks and hand sanitizers were declared controlled goods, due to the COVID-19 pandemic.
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Question 20
What is the motivation to use price control mechanism despite the fact it includes not only essential social goods, but also a number of industrial goods, in particular metal products, paper, tires, fertilizers and pesticides?
Answer
At present, goods and services under the "Controlled Goods and Services" list under the Prices of Goods and Services Act B.E. 2542 (1999) are not under any price control measure, except surgical masks domestically produced that are set a ceiling price. Due to the COVID-19 pandemic, the demand for surgical masks in Thailand has increased significantly resulting in price increase inconsistent with the cost. A selling price is set in order to ensure fairness to consumers.
For other goods appeared in the "Controlled Goods and Services" list, usual regulatory measures are requiring business operators to report prices and quantities monthly, to notify costs, prices, and details of goods, to notify price adjustments, to notify quantities and places of storage, and importation and production plans, etc.
4 TRADE POLICIES BY SECTOR
4.3 Energy
4.3.2 Hydrocarbons
Pages 130-131
Question 21
Thailand have implemented subsidy reforms in recent years in respect of hydrocarbons. Could Thailand please provide more information considering the results of this reform?
Answer
The government has a policy to offset fuels containing biofuels to help Thailand benefit as follows:
1. Economic
Reduce the import of fuel from abroad to reduce energy dependence from abroad.
2. Social aspect
It helps farmers earn more by growing crops that can be used as biofuel.
3. Environment
Reduce pollution emitted from fuel combustion.
4 TRADE POLICIES BY SECTOR
4.4 Manufacturing
Page 134, Paragraph 4.85
In 2019, the Office of Industrial Economics, under the Ministry of Industry, launched an Action Plan on Industrial Development (2019-37), aimed at "moving towards a wisdom-driven industry that connects with global economy". The main objectives include: enhancing Thailand's industrial competitiveness in the world; generating more income and creating more jobs, and ensuring the continuity and stability of economic growth; and using industrial development as a key engine to transform Thailand into a high-income, developed country. The authorities stated that the Plan sets
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Question 22
Could Thailand please elaborate on the «Action Plan» started by Thai officials and provide an input of actions that government endeavor to achieve stated goal? Which sectors will be affected by the «Plan»? Does it envisage import substitution and export support measures for products manufactured in Thailand? Which industries are prioritized according to the declared Plan?
Answer
The industrial sectors under the action plan are the target industries that the Ministry of Industry considered as the important engines of economic growth. They consist of five groups namely:
1) Agriculture, Food processing and Biotechnology
2) Public Health, Health, and Medical Technology
3) Electronically Controlled Mechanical, Smart Devices, and Robots e.g. automotive and parts, electrical appliances and telecommunication equipment, robots, and aircraft
4) Digital Groups e.g. internet technology, connected devices, artificial intelligence, software development, e-commerce, and data center cloud computing
5) Creative Industry Capital, Culture and High Value Services e.g. tourism, fashion industry, lifestyle industry, creative media and animation industry.
Instead of utilizing import substitution or export support measures. The Ministry of Industry's measures focus on building a necessary infrastructure and creating good business environment to promote investment in the abovementioned industries in order to reach the stated goal.
4 TRADE POLICIES BY SECTOR
4.5 Services
4.5.2 Communications
4.5.2.1 Telecommunications
Pages 146-147, Paragraph 4.143
The concentration of Thailand's telecommunication market is considered high, with the latest available Herfindahl-Hirschman Index (HHI) numbers greater than 2,500 (Table 4.15). According to the authorities, there are eight service providers in the fixed telephony market in 2020. In the first quarter of 2020, TOT Public Company Limited accounted for nearly 80% of the market share, followed by TRUE Internet Corporation Company Limited with 17%; the rest occupied some 4%.
Question 23
What are the measures undertaken to promote competition in the telecommunication market?
Competition in Telecommunications Market
The regulation over the competition of telecommunications business shall comply with the Trade Competition Act B.E. 2560 (2017). The regulation of NBTC shall be under the principles of the four notifications, which are:
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1) Notification of the NBTC on Measures to Prevent the Monopoly or Unfair Actions in the Telecommunications Business B.E. 2549 (2006).
2) Notification of the NBTC on Criteria and Procedures to Identify the Significant Market Power in the Telecommunications Business B.E. 2557 (2014).
3) Notification of the NBTC on Definitions and Scopes of Relevant Telecommunications Market (Vol. 2) B.E. 2563 (2020).
4) Notification of the NBTC on Merger and Acquisitions Regulation in Telecommunications Business B.E. 2561 (2018).
Currently, the Office of NBTC is reviewing the procedures to identify the Significant Market Power in the telecommunications business by considering mainly on the change of technology and market demand, as well as the condition of the competition.
Consumer Protection
The National Broadcasting and Telecommunications Commission (NBTC) of Thailand has the authority to supervise telecommunications business for the protection of the service users, pursuant to the Telecommunications Business Act B.E. 2544. The service users (consumers) have the right to lodge a petition to the NBTC in case of suffering from the telecommunications operators or the licensees, the right to request information of his or her service usage from the licensees and the right to use service from his or her own telecommunications equipment, but not limited to the right of freedom and privacy to communicate by means of telecommunications. In case licensees violate or fail to comply with this regulation, the NBTC has the power to order the licensees to terminate such violation, or to correct and act in appropriate manner within a specified period. Should the licensees not comply, the NBTC has the authority to suspend or revoke the license.
Moreover, the NBTC is obligated to protect consumer rights against unfair contract terms. In accordance with Notification of the NBTC on Standard Contracts for Telecommunications Service Provision B.E. 2549, the NBTC has the authority to examine and approve the standard contracts provided by telecommunications service providers to ensure that those contracts shall contain necessary contract terms and shall be devoid of unfair contracts that exploit service users.
The NBTC also vigorously encourages the service users to be aware of their rights. The NBTC has actively instructed the service providers to inform of users' rights by publicizing the notifications on the rights of mobile-phone users and fixed-line Internet users at their service-providing premises. This serves to ensure that the service users are well aware of their rights with precision and clarity.
The Telecommunications Consumer Protection Bureau (TCP) is an organization to be in charge of protecting the rights of service users, under the authorization of the NBTC. The roles and missions of TCP shall be elaborated as follows:
The NBTC's Telecommunications Consumer Protection Bureau (TCP)
The Telecommunications Consumer Protection Bureau (TCP) has been established to have its responsibilities concerning the measure for the protection of freedom rights of the citizen, for not being exploited by the telecommunications operators, for promoting people's rights, freedom and equity so that they are able to access the spectrum and telecommunications services, setting up criteria and procedures and handling of matters related to consumer protection, receiving and managing complaints, and resolving disputes between telecommunications services providers and consumers, as well as giving support on administrative services to the Sub-committee on Telecommunications Consumer Protection.
TCP also supervises and acts upon the activities regarding consumer protection in accordance with:
1) NBTC's Regulation on the mediation of disputes between telecommunications business licensees and complainants B.E. 2555 (2012).
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This regulation is expedient to determine the mediation process for considering the complaints between the telecommunications business licensee and the complainant in order to solve the problems of the parties. Adding the channels for resolving disputes and giving the parties the opportunity to settle the dispute promptly and satisfactorily. This can also maintain good relations among concerning parties and create balance in the development of telecommunications as well as increasing the efficiency of consumer protection.
2) Notification of the NBTC on the process for receiving and considering complaints on telecommunications business B.E. 2559 (2016).
This Notification is expedient to revise Notification of NBTC on the process of complaints receiving and considering for the protection of the users' benefits, particularly the rights and freedoms of people. It also ensures that the users will not be taken advantage of from business operators. In order to consider and resolve complaints, the protections encompasses personal information, privacy rights, and freedom of the individuals to communicate by means of telecommunications. It will be convenient, fast, and aligned with the provisions of law on the organization to allocate radio frequency and to regulate radio broadcasting business and telecommunications operation.
TCP also establishes a channel for receiving complaints for the consumers through:
(1) Email: [email protected] (2) URL: http://tcp.nbtc.go.th (3) NBTC Call Center Dial 1200 (4) SMS to 1200 (5) Fax: 02 2279 0251.
The NBTC's roles in bridging digital divide
The NBTC's roles to bridge Thailand's digital divide proceeds with a promising progress. So far, the NBTC has been working, with ardour and vigour, to fulfil the Universal Service Obligation (USO) and reduce the gap in telecommunications access. Pursuant to the Section 27 (12) and Section 50 of the Act on Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 (2010) and Section 17 of the Telecommunications Business Act B.E. 2544 (2001), the NBTC is obligated to ensure the universal basic accessibility to the telecommunications service for all walks of lives in Thailand – covering both spatial and social dimensions.
The NBTC adopts the framework based on Notification of the NBTC on the Universal Service Masterplan No. 2 B.E. 2560-2564 (2017 – 2021). The Masterplan is set to provide telecommunications service in areas including rural, low profit-yielding, service-insufficient, service-lacking, but not limited to services in religious sites, hospitals, and social service agencies. It also requires the NBTC to provide public telecommunications service access to the groups of individuals, comprising the underprivileged, the disabled, children, the elderly, and other disadvantaged groups.
Another key framework which the NBTC operates is the Telecommunications Masterplan No. 2 B.E. 2562-2566 (2019 – 2023). The Telecommunications Masterplan accentuates the NBTC's commitment to mollify the ongoing digital divide. This appears in the strategy No. 4 "Providing Universal Basic Telecommunications and Social Services" of this Telecommunication Masterplan. To drive the strategy, three implementation approaches have been introduces as follows:
1) Provision of Basic Telecommunications Services in Geographical Dimension
2) Provision of Basic Telecommunications services in Social Dimension
3) Promoting and Supporting Digital Technology Skill Development to Encourage the Target Group to Utilize Telecommunications Services Efficiently with Social Responsibility in order to Empower the People, Community, and Society to Support Digital Society Development.
Moreover, the NBTC is expediting the provision of mobile phone service and high-speed internet service projects in the marginalized areas (Zone C+), as well as the high-speed internet service projects in remote areas (Zone C). These plans and operations therefore serve to alleviate the
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4 TRADE POLICIES BY SECTOR
4.5 Services
4.5.3 Transport
4.5.3.2 Terrestrial transport
4.5.3.2.2 Rail transport
Page 153, Paragraph 4.187
The State Railway of Thailand (SRT), an agency under the Ministry of Transport, owns the national network, and acts as the sole carrier for inter-city/inter-regional traffic, and as the network infrastructure manager. The SRT's main business is passenger transport. Under the Public Service Obligation, an agreement with the Government, 90% of passenger loads are price-capped (i.e. transported in third-class carriages), which occupy 70% of track capacity. Freight is not considered a priority for the SRT; it operates, on average, 62 freight trains per day, carrying fuel, construction materials, containers, and general goods. In 2015, rail freight accounted for 1.4% of total freight transport.
Question 24
What are the policies aimed at liberalizing participation of foreign companies in rail freight transport, if any?
Answer
Ministry of Transport is promoting private sector to participate in transport infrastructure development, management as well as services in the form of Public-Private Partnership (PPP) which aim to utilise private expertise in transport sectors. Therefore, foreign companies can join with Thai company and abide by relevant law and regulations.
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SINGAPORE
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT – WT/TPR/S/400
2 TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES
Question 1
Trade Policies by Sector (Section 4.5.3.3 Maritime transport)
Page 154, Paragraph 4.193
We note that Thailand has in place a cargo reservation policy which requires goods imported into Thailand by government agencies or public enterprises to be transported by Thai-flagged vessels on designated shipping routes, where such vessels are available. We wish to seek Thailand's clarification on the circumstances under which foreign vessels may be permitted to provide such services, if domestic vessels are not available and how these circumstances are determined. We would also appreciate if Thailand could share if there are any administrative procedures involved. In addition, we would like to know if Thailand intends to review its cargo reservation policy as part of the review of its key maritime laws.
Answer
According to the criteria of Thailand's cargo reservation measure, government authorities, government agencies or public enterprises or their contract parties which intend to import goods to Thailand on nine designated mandatory shipping routes (including transshipment), namely, from (1) Japan (2) Republic of Korea (3) Chinese Taipei (4) Hong Kong, China (5) Singapore (6) Europe (Norway, Sweden, Finland, Denmark, United Kingdom, Ireland, Germany, Netherlands, Belgium, France, Spain, Portugal, and Italy), (7) United States (8) China, and (9) Malaysia to Thailand are required to engage Thai-flag vessels for such transportation. As shipping routes other than those nine designated routes are not mandatory, any vessels flying Thai or non-Thai flag can be engaged to carry the imported goods.
Thai-flag vessels in this context include vessels registered with the Marine Department of Thailand to fly Thai flag and foreign vessels chartered by Thai shipowners or operators which receive the same rights and privileges as Thai-flag vessels.
If a government authority/agency or its contract party decides to engage service provided by a Thai-flag vessel or a chartered foreign vessel receiving the same rights and privileges as Thai-flag vessels, the government authority/agency or the contract party is required to notify the Marine Department for the use of such service at least one day before imported goods are loaded.
In addition, when such vessel arrives at a Thai port, the responsible government authority/agency or its contract party is also required to notify its arrival to the Marine Department within seven days.
If neither Thai-flag vessels nor chartered foreign vessels are available for services, the government authority/agency or its contract party is required to seek permission to engage services provided by non Thai-flag vessels from the Marine Department no less than 10 days before imported goods are loaded. After receiving such request, the Marine Department will contact Thai shipowners/operators to see whether any Thai-flag vessel or chartered foreign vessel is available to transport imported goods to Thailand. If the Department receives a reply from a Thai shipowner/operator that he has a Thai ship available to provide service, the Department will not grant permission to the requested government authority/agency or its contract party and insist that the requested government authority/agency or its contract party must engage the service provided by the reply shipowner/operator. On the other hand, if the Department receives no reply from Thai shipowners/operators, it will grant permission to the requested government authority/agency or its contract party for the use of non Thai-flag vessel to transport imported goods to Thailand.
When the non Thai-flag vessel arrives at a port in Thailand, the government authority/agency or its contract party must notify the Marine Department of such arrival. If any government authority/agency or its contract party does not use the service of Thai-flag vessel or chartered
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The Marine Department has intended to review the cargo reservation measures from time to time since the implementation of such measures involve loads of administrative work.
Page 155, Paragraph 4.195
Question 2
We note that foreign vessels may be permitted to provide specific shipping services in Thailand for one year, if domestic vessels are not available. We further note that this would be on a case-by-case basis and subject to the authorisation of the Thailand Ministry of Transport. We would like to seek clarification on the circumstances under which foreign vessels may be permitted to provide such services, and whether there are any administrative procedures involved. We would also like to seek Thailand's clarification on whether there are other services besides the laying of pipes which foreign vessels may be permitted to provide.
Answer
Circumstances for engaging services provided by foreign vessels
The circumstances under which foreign vessels may be permitted to provide specific shipping services in Thailand mainly arise from the insufficient number of Thai vessels providing services to meet the domestic transport demand in certain parts of Thai territorial waters. To present, the circumstances under which foreign vessels have been permitted to provide services in Thai territorial waters include:
- Survey, inspection and installation of submarine transmission cable
- Construction of a marine terminal
- Activities relating to petroleum industry
- Transportation of goods and chemical products
- Channel dredging and sand suction.
Administrative procedures involved
If such circumstance does exist, one who wishes to use such transport services in certain part of the Thai territorial waters that Thai vessels are not available to provide services must apply for the permission and submit a written request form to the Ship Registration Standard Bureau, Marine Department or the Marine Regional Offices.
The Ship Registration Standard Bureau, Marine Department or the Marine Regional Offices, after which, receiving the written request form, will make an assessment of the availability of shipping services of Thai vessels in the specified area by putting the official request seeking the available shipping services provided by Thai ship owners/operators on the Department's website at least 15 days while issuing official letters on the same matter to stakeholders such as the Thai Shipowners' Association.
If the Department receives no reply on the availability of shipping services provided by Thai ship owners/operators or the unfavorable reply indicating the unavailability of such services, the applicant must submit the request for permission to use the non Thai-flag vessel to carry the imported goods to Thailand together with supporting documents to the Ship Registration Standard Bureau, Marine Department or the Regional Marine Offices within 30 days.
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After verifying the validity of request form and supporting documents, the Marine Department will submit the request to the Minister of Transport to consider granting permission. If the Minister agrees to grant permission, the Marine Department will notify the applicant to pay a special fee and issue a permit. If not, the Marine Department will notify the applicant of the result and the right to appeal.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT – WT/TPR/S/400
Nil.
GENERAL QUESTIONS
Foreign Equity Limit
Question 3
We understand that most of the ASEAN Member States (AMS) have removed the Foreign Equity Limit in the Insurance and Capital Markets Sectors in the Financial Services Protocol of the ASEAN Framework Agreement on Services (AFAS). However, Thailand has been maintaining the Foreign Equity Limit at 49%. While we note that the regulatory regime allows certain Financial Institutions to go beyond the current cap in the AFAS, this would still be given on a case-by-case basis unlike a standard rule as in the FTA. Given that the existing leeway to increase and the strong push for financial integration in the region as well as the high levels of Mode 3 commitments shown by the other AMS, could Thailand reconsider removing or increasing the current Foreign Equity Limits?
Answer
The foreign equity limitation is in accordance with the laws under Life Insurance Act and Non-Life Insurance Act and its amendment. However, the foreign shareholder in insurance company under the Insurance Act are in three levels as follows:
1) Foreign shareholders are allowed up to 25%.
2) Foreign shareholders may hold up to 49%, upon a permission granted by the Commission where it deems appropriate.
3) Foreign shareholders may hold more than 49%, upon a permission granted by the Minister of Finance with a recommendation from the Commission, in the following cases:
- A case that the company's standing or operations are of a condition that might cause damage to the insured or the public
- A case to strengthening the stability of the company or the insurance industry.
The consideration of approval foreign shareholder relaxation is case by case basis. Reconsidering to remove or increase the current Foreign Equity Limits is subject to the government policy.
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SWITZERLAND
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Summary
Paragraph 16
Question 1
The paragraph states that Thai SOEs are "among the top receivers of public funds". Could Thailand elaborate on the amounts, nature and affectation of these funds?
Answer
In fiscal year 2020, state enterprises received THB 155,202.8 million budget or approximately 4.9% of total.
Please visit http://www.bb.go.th/en/topic-detail.php?id=11211&mid=456&catID=0 for more information.
1 ECONOMIC ENVIRONMENT
1.1 Main Features of the Economy
Question 2
According to Table 1.1 (page 12), the unemployment rate in Thailand is really low (below and around 1% from 2015-19), how do you explain this number?
Answer
Please see the study by Bank of Thailand at: https://www.bot.or.th/English/MonetaryPolicy/MonetPolicyComittee/MPR/BOX_MRP/BOXMPR_EN_ March2019_01.pdf.
Paragraphs 1.3, 1.16, 1.25
Question 3
La Thaïlande fait face à un accroissement des inégalités de revenu et prévoit une réforme fiscale pour y faire face. La Thaïlande envisage-t-elle d'autres mesures afin de lutter contre l'accroissement des inégalités de revenu et régionales (par ex. concernant l'accès à l'éducation)?
[Thailand is facing increasing income inequality and is planning tax reform to address it. Is Thailand considering other measures to address growing income and regional inequalities (e.g. access to education)?]
Answer
The Office of National Economic and Social Development Council (NESDC) publishes the annual poverty and inequality report each year. The assessment of inequalities of this report contains rich information and insights that help us track inequality performance in Thailand over the past decade. Although the indicators show that the gaps in opportunities have gradually narrowed, much more remains to be accomplished.
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Policy gaps that need to be addressed include:
1) The resources of public assistance programs have not entirely directed to those most in need
2) GTPs (Government Transfer Payments) alone may not sustainably tackle poverty
3) Regional inequality explains the differences in opportunities and quality of public services
4) Evaluation of anti-poverty/inequality programs is needed to assess impacts.
Taking these into account, the following are the policy implications that we are considering addressing inequality problems in Thailand:
5) Improve the poverty-targeting system to reach more poor people, while ensuring minimum inclusion error
6) Tailor public assistance programs to the unique needs of the poor
7) Expand growth to other regions and empower communities to develop and apply locally-based solutions to poverty
8) Effectively utilize allocated resources to deliver public services in a cost-effective manner
9) Redesign tax system in a way that enhance income redistribution and reduce inequalities
10) Assess the effectiveness of public assistance programs in order to improve and eliminate programs that are duplicative and ineffective.
Paragraphs 1.5, 1.7
Question 4
La Thaïlande est fortement dépendante du commerce et de son intégration dans les chaînes de valeur mondiales. A-t-elle entamé ou envisage-t-elle une réflexion en ce qui concerne les conséquences de la pandémie de COVID-19 sur les chaînes d'approvisionnement mondiales et la dépendance vis-à-vis de l'étranger?
[Thailand is heavily dependent on trade and its integration into global value chains. Have Thailand started or is considering thinking about the consequences of the COVID-19 pandemic on global supply chains and dependence on overseas?]
Answer
The COVID-19 pandemic brings the economic stagnation, trade and investment deceleration so that Thai economic is not able to rely on other countries as it used to be.
To drive the country during the pandemic, the Separated Master Plan from the COVID-19 pandemic (2021-2022) and the 13th National Economic and Social Development Plan focus on the "Resilience" to emphasize on strengthening the local economy and SMEs and to decrease the dependency of external/international economy. This will make the manufacturing sector to have a higher ability to adapt and grow in a direction that promotes strong domestic growth and create opportunities from the appropriate linkages with the international / regional economy.
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1.3 Developments in Trade and Investment
Question 5
In Chart 1.3, we see an increase of the share of gold exports from 2015-19 (1.8% to 3.4%). What are the reasons for this increase?
Answer
Higher proportion of Thailand's gold exports was resulted from appreciation of THB by 9.4% from 2015-2019 (from 34.2 baht/USD in 2015 to 31 THB/USD in 2019). The western countries used economic stimulus measures and easy monetary policy, resulting in more capital movement to Thailand and Asia. Despite Thailand's capital-account surplus, higher Forex reserves, and more economic stability, higher demand for THB caused appreciation.
Impacts of gold imports and exports
Negative economic factors increased the gold price in the global market (From 1,200 dollars/troy ounce in 2015 to 1,400 dollars/troy ounce in 2019). Appreciation of THB resulted in cheaper import cost of gold. Therefore, gold trading through Thailand increased. This could be viewed from increasing imports and exports, both amount and value (In 2019, gold exports increased by +74% YoY during the most appreciation of THB). This also resulted in more gem businesses growth. In fact, Thailand is a country where gold production is not sufficient for domestic use. Therefore, we mainly rely on gold imports from other countries.
Paragraph 2.8
Question 6
How do you see the opportunities and the roles of the foreign companies in the national strategy Thailand 4.0?
Answer
The Thailand 4.0 national strategy is designed for the engine of growth upon the value creation through technological innovation, value-based economy and digital transformation. Service-oriented and knowledge-based sectors are supported with wide range of opportunities to explore. There are five clusters to be focused as targeted clusters: 1) Food, Agri and Bio-tech, 2) Health wellness & Bio-Medical, 3) Smart Devices, Robotics & Mechatronics, 4) Digital, IoT, Artificial Intelligence & Embedded Technology, 5) Creative, Culture & High Value Services. Unless stated as prohibited by laws and regulations, the foreign companies are welcome to trade and invest in the targeted clusters.
The government is also developing new growth hubs by starting with the Eastern Economic Corridor (EEC) which covers Rayong, Chonburi, and Chachoengsao provinces, with a total area of 13,000 square kilometers. The government is also set to accelerate the area's readiness to support all aspects of investment and economic growth, and fully expects that the EEC will be an important center for trade, investment, regional transportation, and a strategic gateway to Asia. Under the EEC, there are many benefits and privileges offered to foreign investors such as taxation, visa, and property investment and so on.
The foreign companies, that own technology and innovation, will be the significant enablers for advancing Thailand's technology and research as well as enhancing labour skills in the industries. These companies will play a role in transferring technology and knowledge to Thai people. In addition, the targeted industries are going to heavily invest in research and development which is key to success for driving the policy of Thailand 4.0.
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2 TRADE AND INVESTMENT REGIME
2.1 General Framework
Question 7
Is the approval of international agreements, or of amendments thereof, always in the competence of the National Assembly or are there exceptions (i.e. limited scope of new rights and obligations, amendments of a technical nature, etc.)?
Answer
According to Section 178 of the Constitution of the Kingdom of Thailand B.E. 2560 (2017), three categories of treaties, or international agreements, must be submitted to the National Assembly for approval prior to their entry into force:
a) any treaty which provides for a change in Thai territories or external territories over which Thailand has sovereign right or jurisdiction under a treaty or international law;
b) any treaty which requires the enactment of a legislative Act for implementation; and
c) any treaty pertaining to free trade, common customs union, or the authorisation of natural resources utilisation, or which cause the country to lose rights over natural resources, in whole or in part, or any other types of treaties provided by law, provided that any aforementioned treaty may have wide scale effects on the security of economy, society, or trade or investment of the country.
Amendment of treaties is subject to the same constitutional requirement.
Question 8
What is the timeframe of approval of international agreements by the National Assembly? Is provisional application of an international agreement after signature by the King and before approval by the National Assembly possible?
Answer
What is the timeframe of approval of international agreements by the National Assembly?
According to Section 178 of the Constitution of the Kingdom of Thailand B.E. 2560 (2017), the National Assembly shall complete its consideration for the approval of an international agreement within sixty days as from the date of receipt of such matter. If the National Assembly does not complete the consideration within such period of time, it shall be deemed that the National Assembly has given approval.
Is provisional application of an international agreement after signature by the King and before approval by the National Assembly possible?
As a point of clarification, treaties entered into by Thailand are signed either by the Prime Minister, the Foreign Minister or relevant Minister with Full Powers. Even though Section 178 of the Thai Constitution provides that the King has the Royal Prerogatives to conclude treaties with other countries or international organisations, in practice this power is exercised through the Council of Ministers.
Thailand recognises the provisional application of treaties, as stipulated in Article 25 of the Vienna Convention on the Law of Treaties (1969). The Contracting Parties may express their intention during the treaty negotiation process, to include a provision on provisional application in the treaty, to allow treaty application before the Contracting Parties complete their internal procedures for the treaty to enter into force.
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It should be noted that as in any dualist State, the application of a treaty in Thailand will not be automatic and internal procedures must first be completed.
2.3.2 Regional and preferential agreements
Question 9
What are Thailand's priorities in the field of free trade agreements?
Answer
1) To enhance opportunities on trade and economic
2) To protect and preserve country's trade and investment interests.
Question 10
What are Thailand's priorities within the ASEAN?
Answer
Thailand priorities the following developments under ASEAN in 2020:
1) Economic recovery after COVID-19 pandemic. Thailand supports the ongoing development of the ASEAN Comprehensive Recovery Framework, which provides a strong foundation for a swift and sustainable economic recovery in ASEAN. Thailand also recognises the importance of maintaining supply chain connectivity, as highlighted in the "Hanoi Plan of Action on Strengthening ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the COVID-19 Pandemic" that was adopted by the ASEAN Economic Ministers in June 2020.
2) Supporting transformation into digital economy and preparation for harnessing the benefits of the fourth industrial revolution (4IR). 4IR will bring substantial benefits to ASEAN, including empowering SMEs and creating new ways to connect people to healthcare. On the other hand, 4IR will create considerable challenges as Artificial Intelligence and advanced robotic will undermine both manufacturing and services jobs. Thus, ASEAN is intensifying efforts to take a coordinated and holistic approach in regional transition to the 4IR.
3) Singing and entry-into-force of the RCEP Agreement. The Regional Economic Comprehensive Partnership (RCEP) will deliver tangible benefits to all 15 participating countries through improvements in market access, more coherent trade facilitation measures and conducive regulatory rules and cooperation. In turn, the economic integration will provide more choices to consumers and create new opportunities for ASEAN to participate in the global value chains.
4) Trade facilitation:
4.1) ASEAN Single Window (ASW) - All ASEAN Members have now joined the ASW. The ASW opens a vast window of opportunities for ASEAN to exchange documents electronically starting from the certificate of origins (e-Form D) and will expand to cover other documents including customs declaration, phytosanitary certificate and so forth.
4.2) ASEAN-Wide Self-Certification (AWSC) - AWSC is a unified Self-Certification scheme under the ASEAN Trade in Goods Agreement (ATIGA). It is a trade facilitation initiative that allows Certified Exporter (CEs) in all ASEAN Member States to self-declare the origin for their exports under ATIGA instead of applying for a Certificate of Origin (FORM D) with the Certificate Issuing Authority in their respective State. ASEAN is currently expediting the domestic process to ensure full operation of the AWSC as soon as possible.
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5) Managing Non-Tariff measures (NTMs) in ASEAN. The removal of NTMs that are considered as Non-Tariff Barriers (NTBs) are amongst key components of ASEAN's efforts to enhance intra-regional trade in ASEAN. In this connection, ASEAN has applied ASEAN's NTMs Guidelines and the Matrix of Actual Cases on NTMs/NTBs that ASEAN has developed in addressing, resolving, and removing identified NTBs.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1.2 Tariffs – 3.1.2.3 Applied tariff
Paragraph 3.27 – Page 53
Question 11
According to paragraph 3.27, the significant difference between bound and applied rates gives the possibility to raise applied tariffs to their bound levels.
- Could Thailand indicate whether it has used this possibility since the previous TPR?
- If yes, could Thailand indicate for which products (HS code, product description and rate)?
Answer
Thailand has never raised applied tariffs to bound levels.
Paragraph 3.28 and Table 3.4 – Pages 54 and 55
Paragraph 3.28 and table 3.4 indicate that for six tariff lines the applied rates are higher than the bound rates. However, the Thai authorities indicate that this is not the case.
Question 12
Could Thailand explain the reasons of this divergences and confirm that the applied rates for these six tariff lines are below its bound rates?
Answer
Thailand's applied tariff rates under The Ministry of Finance RE: Exemption Duty, Decreasing and Increasing Customs Duty Tariff rate under the obligations of Marrakesh Agreement Establishing The World Trade Organization, dated 10 November B.E. 2560 (2017) totally comply with the bound rates under WTO, while applied tariff rates under other Notifications besides the said Notification are applied to non-WTO members. The exporters/importers from WTO member countries must indicate their origin during the customs procedures in order to get the WTO applied tariff rates.
Additionally, according to the notification, Thailand committed tariff rates for Barley other than seed under the tariff code 1003.90.00 at 27%, for Other cereals under the tariff code 1008.90.00 at 27%, for Toothpicks of bamboo under the tariff code 4421.91.60 at 20% and for Toothpicks of wood other than bamboo under the tariff code 4421.99.80 at 20%, all in ad valorem rate. When concerned products imported from WTO member's country, the rate as mentioned above will be applied.
3.1.5 Anti-dumping, countervailing, and safeguard measures
Question 13
The report of the Secretariat, paragraph 3.47, mentions that Thailand's legislation on anti-dumping and countervailing measures was amended in 2019 and that the amendment will be notified to the WTO once the English translation is completed. Could Thailand elaborate on the main changes introduced by the amendment?
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Answer
The amendment has added a new chapter relating to Anti-Circumvention which cover the factors need to be considered and the investigation process. Investigation shall be concluded within nine months and can be extended to another three months. If circumvention is found, Anti-dumping duties not exceeding the residual anti-dumping duty may be extended to imports from companies which circumvent the measure in force.
3.3.4 State trading, state-owned enterprises, and privatization
Question 14
The Performance of SOEs (GDP) is steadily rising. Further to the State-Owned Enterprise Development Act and to the use of public private partnerships (PPPs), does Thailand foresee to continue to reform and improve the performance of SOEs?
Answer
The government has continued to develop and improve SOEs' performances. At present, Ministry of Finance has established the State Enterprise Strategic Plan, B.E. 2560 – 2564 (2017 – 2021), which aims to develop SOEs' operation to achieve the goal set by the National Strategic Plan.
In addition, Ministry of Finance has several SOEs' management and monitoring tools to improve SOEs' performance, such as SOEs' Good Corporate Governance principles and guidelines, Internal Control, Internal Audit, Risk Management guidelines, Performance Evaluation System, and Disclosure.
Question 15
The authorities stated that the Government has not implemented any policy one SOE privatization since 2015. Is any such policy planned for the future?
Answer
The government does not have any policy to privatize a state enterprise yet. On the other hand, the government encourages the improvement of SOE's performance and enhances the efficiency of SOEs, as well as promotes PPP.
3.3.5 Government procurement
Question 16
According to paragraph 3.181, the procurement regime in Thailand attaches great importance to the principles of value for money, transparency, efficiency, effectiveness and accountability. What are the experiences made so far with the new Public Procurement and Supplies Administration Act B.E. 2560 of August 2017 in promoting and implementing these principles? As Thailand may be aware because of its observer Status within the WTO Committee on Government Procurement, the same kind of principles are also the cornerstone of the WTO Government procurement Agreement (GPA). Does Thailand consider that adhering to the international recognized standards provided by the WTO Agreement on government procurement (GPA) in the near future may constitute an additional leeway to support transparency, competition, value for money and to prevent corruption and collusive practices in government procurement?
Answer
Thailand has adopted many international recognized standards in government procurement such as Integrity Pact (IP) and Construction Sector Transparency Initiative (CoST) which significantly improve transparency and value for money in Thai government procurement. In addition, Public Procurement and Supplies Administration Act B.E. 2560 (2017) complies with international standards such as GPA, or UNCITRAL, however, Thailand does not have plan to become GPA member.
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3.3.6 Competition policy and price regulation
Paragraph 3.196
Question 17
La nouvelle législation sur la concurrence (Trade Competition Act) est entrée en vigueur en 2017. Quel est l'objectif principal que poursuit cette nouvelle loi? Est-ce que la protection des consommateurs est également un but de cette loi?
Answer
In the past, the price regulation was practiced at the destination of the product, the selling place, which was the retail price followed by the observation of the wholesale price. Later, the trading system was changed. There were both oligopolistic and monopolistic markets. The retailers would sell their products at the price that was set by the originating point which resulted in the fact that consumers were forced to buy products at an expensive price. To prevent the entrepreneurs to build any monopolistic power over certain activities such as to limit the number of products to be sold which leads to the shortage of products that consequently the increases of product prices. Apparently, consumer protection is not a goal of this law.
However, the competition law (Trade Competition law), if the authority can apply every law effectively, the outcome could lead to consumer protection. However, Thailand introduced the Consumer Protection Act B.E. 2522 (1979) specifically to take care of this specific matter.
Question 18
Does the Office of the Trade Competition Commission as constituted under the new Trade Competition Act also cooperate and consult with competition authorities of other Member States in their dealings with anti-competitive practices?
Answer
Yes. As the OTCC has been established only for two years, OTCC cooperates with other member states in dealings with anti-competitive practice to help the OTCC developing and improving its works and competencies. There are several authorities that OTCC has cooperated with, such as ASEAN Experts Group on Competition (AEGC), International Competition Network (ICN), Competition Policy and Law Group (CPLG) (APEC), UNCTAD, OECD, etc.
Paragraph 3.202
Question 19
Des régulateurs sectoriels sont responsables des secteurs télécommunications et énergie. Est-ce que dans le cadre de la refonte des autorités institutionnelles de la concurrence, une discussion a eu lieu sur la suppression des régulateurs sectoriels au profit d'une seule autorité de concurrence?
[Sectoral regulators are responsible for the telecommunications and energy sectors. As part of the overhaul of institutional competition authorities, has a discussion taken place on the abolition of sectoral regulators in favour of a single competition authority?]
Answer
The OTCC is the organisation to enforce the Competition Act B.E. 2560 (2017). However, Thailand has a sectoral regulator with experts who have particular skill set to regulate those sectors. Therefore, the government never has discussion taken place on the abolition of sectoral regulators in favour of a single competition authority.
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Paragraph 3.213
Question 20
This para of the Secretariat Report mentions that there are competition chapters/provisions in some FTAs to which Thailand is a party but they are generally limited to transparency and cooperation. What sort of cooperation provisions are included in these FTAs? Does Thailand include, or foresee to include, provisions regarding measures against anti-competitive practices in its preferential trade agreements? If this is the case, would these provisions also apply for state-owned enterprises?
Answer
Thailand-New Zealand Closer Economic Partnership
In Thailand-New Zealand Closer Economic Partnership Agreement, the Competition chapter comprises cooperation provisions on competition law enforcement, including through the exchange of information, notification, consultation, and coordination of enforcement matters that are cross-border in nature. Moreover, technical cooperation activities related to the implementation of competition law and policy are also included. These activities may entail (a) exchange of personnel for training purposes; (b) participation of personnel as lecturers or consultants at training courses of competition law and policy co-organised and co-sponsored by the competition authorities of the Parties; and (c) any other form of technical assistance as mutually decided by the competition authorities of the Parties.
In the Competition chapter, elements of measures against anti-competitive practices are also mentioned. The agreement promotes an effective coordination on competition policy and law between the Parties. It also requires that any measures taken by a Party to proscribe anti-competitive practices, and the enforcement actions taken pursuant to those measures, shall be consistent with the principles of transparency, timeliness, non-discrimination, comprehensiveness and procedural fairness. In addition, the text specifies that, at the request of either Party, the Parties shall consult on particular anti-competitive practices and other competition issues adversely affecting trade or investment between the Parties. However, specific sectors can be exempted from the application of competition law provided that such exemptions are transparent and undertaken on the grounds of public policy or public interest.
Thailand-Australia Free Trade Agreement
Chapter 12 of the FTA highlights some of the most important aspects of competition policy by addressing the promotion of competition through adopting and enforcing means or measures as parties deemed appropriate. Moreover, the TAFTA has also promoted the cooperation and exchange of information in the area such as competition law enforcement and the matters related to the cross-border in nature. The TAFTA stipulates commitments for parties to promote transparency, non-discrimination, comprehensiveness as well as procedural timeliness and fairness in relation to application of competition laws. In addition, the parties must made publicly available laws and regulations related to promotion of fair competition and anti-competitive practices. However, due to the non-binding nature of the commitments, these are applied to promote fair competition and curtail of anti-competitive conducts of businesses in general, with exemption for conducts undertaken on the grounds of public policy and public interest.
ASEAN-Australia-New Zealand Free Trade Area
Due to different in stage of development of parties, the commitments relating to competition under AANZFTA are limited to cooperation activities such as (a) exchange of experience regarding the promotion and enforcement of competition law and policy; (b) exchange of publicly available information about competition law and policy; (c) exchange of officials for training purposes; (d) exchange of consultants and experts on competition law and policy; (e) participation of officials as lecturers, consultants, or participants at training courses on competition law and policy; (f) participation of office ials in advocacy programmes; (g) other related activities following the introduction of a competition law in a Party; and (h) any other form of technical co-operation as agreed upon by the Parties. At the moment the commitments of competition under AANZFTA will focus around the area of cooperation to increase members' capacity in these aspects.
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Japan-Thailand Economic Partnership Agreement and ASEAN-Japan Comprehensive Economic Partnership
There is a chapter on Competition under Thailand – Japan FTA, aiming to promote fair and free competition by proscribing anti-competitive activities. For ASEAN – Japan FTA, the cooperation on competition policy is one of the fields under Economic Cooperation provision, aiming to liberalize and facilitate trade and investment and to promote the well-being of the people.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.2.4 Industry
Question 21
Paragraph 3.42 presents three guidelines contained in Thailand's "Action plan on industrial development" with the goals to boost national competitiveness, ensure consistent economic growth, and support the country vision towards "Thailand to become a developed country with security, prosperity, and sustainability in accordance with the Sufficient Economy Philosophy". Guideline (1) is formulated as follows: (1) To transform Thailand's industry towards wisdom-driven industry by enhancing productivity of targeted industries, increasing the utilization of digital technology in SMEs, raising the amount of Innovation-driven Enterprise (IDE), as well as reducing waste and CO2 from industrial sector.
(a) Could Thailand elaborate on what is meant by "wisdom-driven industry"?
(b) Guideline (1) states the objective to reduce waste and CO2 from industrial sector. Are there any quantitative targets for the reduction of waste and CO2 from industrial sector (reduction by x% for example)?
Answer
(a) "Wisdom-driven Industry is one of the main strategies to push forward Thai industries. It consists of four goals as follows:
1) Increasing productivity and efficiency of the targeted industries.
2) Increasing digital usage in the production among SMEs.
3) Increasing the number of innovation-based entrepreneurs.
4) Reducing of CO2 emission and increasing the competitiveness of the targeted industry cluster.
(b) For targets on reducing the amount of waste and carbon dioxide emissions from the industrial sector, the Ministry of Industry through the Department of Industrial Works was assigned to be the primary responsible agency to formulate the National Greenhouse Gas Reduction Action Plan 2021 - 2031 in the field of industrial processes and product usage including industrial wastewater treatment together with the Ministry of Energy in order to meet the country's greenhouse gas reduction target of 20% or 111 million tons of carbon dioxide by 2030.
3.2.5 Services
Question 22
Point 3.2.5.2.1 outlines important developments in the Thai banking sector. Switzerland would like to ask if Thailand could describe the legal requirements for foreign banks to be in a position to offer asset management services to Thai banking clients.
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Answer
In Thailand, asset management services usually refer to the management of financial assets which is regulated by the Securities and Exchange Commission (SEC). Alternatively, asset management services may refer to the management of non-performing assets and doubtful accounts. The Bank of Thailand permitted all commercial banks, including foreign banks, to operate both activities as follow.
Regarding asset management services regulated by the SEC, the Bank of Thailand permits commercial banks to operate some types of securities business to encourage development of the capital and debt instrument markets and to enhance the commercial banks' liquidity management. The banks wishing to supply these services must be licensed, registered, or approved in accordance with relevant law and may need to comply with additional requirements as set out in the Notification of the Bank of Thailand No. FPG. 15/2561. The list of permitted activities can be found in the table below.
Regulations for business operations No. Type of approved business SEC regulations BOT regulations 1 Brokering, dealing, and underwriting businesses 1.1 Brokering, dealing and underwriting of securities which are v v debt instruments and Sukuk 1.2 Brokering, dealing and underwriting of securities which are v v investment units and trust certificates 2 Investment advisory business 2.1 Financial Advisor v - 2.2 Financial Advisor (securities) v - 3 Fund management business 3.1 Private fund management v - 3.2 Provident fund management v - 3.3 Mutual fund management v v 3.4 Venture capital fund management v v 4 Other types of securities businesses 4.1 Securities borrowing, lending, and short setting business v v 4.2 Local securities underwriters v - 4.3 Securities registrar v - 4.4 Mutual fund supervisor v - 4.5 Debenture holder representative v - 4.6 Custodian service v -
In supplying asset management services, commercial banks need to comply with additional requirements, such as, exchange control regulations and requirements against anti-money laundering, and written policies for operating securities business approved by the board of directors is needed.
For the management of non-performing assets and doubtful accounts, commercial banks are allowed to set up their own asset management company as a subsidiary for the purpose of sales or transfers of their loans in order to facilitate and enhance efficiency of their asset management. Commercial banks may accept debtors/loans from other banks and other juristic persons in Thailand. In the case of assets transfers from its subsidiary back to the parent bank, the parent bank can only accept transfers of performing debtors and restructured debtors. In accepting or purchasing loans from other entities, whether individually or by portfolio, prudential review is needed in order to ensure that the loans will generate revenue in the future.
3.2.10 COVID-19 related policies and measures
Question 23
Paragraph 3.97 (1) mentions export restrictions measures for bird eggs and surgical masks (measures (2) and (3)). Does Thailand plan to lift these export restrictions? And if so, when?
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Answer
Due to the situation of the COVID-19 pandemic during March-April 2020, domestic consumption behaviors had changed because people needed to ensure stable livelihood, causing demand of necessary products to increase tremendously. The demand of eggs was no exception, and at the time there was higher consumption than that in normal situation and even higher than daily production. Therefore, the Central Committee on Prices of Goods and Services (CCP) issued two notifications, dated 26 March 2020 and 1 April 2020, regarding export restriction on chicken eggs. These measures ended on 30 April 2020. Afterward, because the situation of the pandemic in Thailand improved, the CCP has not yet issued another export restriction measure.
Regarding surgical masks, on 4 February 2020, the CCP issued a notification listing surgical masks as a "Controlled Good." Later on 2 April 2020, the CCP imposed a measure requiring exportation of surgical masks to obtain a permission letter from the Sub-Committee on Integrating Supply Management for Prevention, Control or Cure of Coronavirus Disease 2019 (COVID-19). In any event, at present, Thailand's surgical mask production capacity has increased, but we are still in need of continuing to monitor spread of the disease in other countries which has lately become quite serious. Thailand plans to review this restriction measure in early January 2021.
3.3.4 ASEAN
Question 24
Point 3.1.2.1. mentions the aspects of electronic and digital integration, for example in the context of ASEAN. Switzerland would like to know, if Thailand intends to intensify cooperation in the areas of digital trade / electronic commerce outside South East Asia? Did Thailand already conclude FTAs containing provisions on digital trade / electronic commerce outside the ASEAN area?
Answer
Bilaterally, Thailand has already signed the 3 following FTAs that have provisions related to electronic commerce.
1) Thailand-Australia Free Trade Agreement (TAFTA) - having an Electronic Commerce Chapter
2) Thailand–New Zealand Closer Economic Partnership (TNZCEP) - having an Electronic Commerce Chapter
3) Thailand-Chile Free Trade Agreement - having electronic commerce provisions in its Cooperation Chapter.
Multilaterally, Thailand has already been a Member of WTO's Joint Statement Initiative on Electronic Commerce (JSI).
4 FUTURE ECONOMIC AND TRADE POLICY DIRECTIONS
Para 4.4 states that "Thailand remains supportive of the rules-based multilateral trading system and the WTO as crucial mechanism for Thailand and WTO Members to address economic challenges resulting from COVID-19 crisis and prepare for the post-pandemic recovery."
Question 25
The current challenging situation calls for the possibility of a trade and health initiative at the WTO. The initiative would aim at securing supply chains for trade in medical and essential goods in times of crisis and promote predictable markets in the long-term. Would Thailand be interested in participating in such an initiative? What would be the main focus for Thailand?
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Answer
Thailand attaches great importance to securing supply chains for trade in medical and essential goods in times of crisis. Moreover, Thailand has joined the Memorandum of Understanding on the Implementation of Non-Tariff Measures on Essential Goods under the Hanoi Plan of Action on Strengthening ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the COVID-19 Pandemic. As for the participation of a trade and health initiative at the WTO, Thailand is in the process of domestic consultation.
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CHINESE TAIPEI
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
2 TRADE AND INVESTMENT REGIMES
2.2 Trade Policy Formulation and Objectives
Page 35, Paragraph 2.12 and Table 2.1
Thailand's trade policy is formulated within the broader framework of the 20-Year National Strategy (2018-2037) and the NESDP 2017-2021. In this context, the MoC has issued its own action plan for 2020-2022. In addition to the objectives and strategies that have guided trade policy since the last Review, the current version of the MoC Action Plan includes the objective of "Enhancing Capacity Building and International Development Cooperation", aimed at increasing Thailand's capabilities and competitiveness in order to expand its presence in foreign markets, and at enhancing its economic partnerships with key trading partners (Table 2.1). (FN: The MoC Action Plan is only available in Thai. A summary of its key points in English was made available to the Secretariat.) To this particular end, the Action Plan sets out three implementation guidelines: (i) expansion of Thailand's foreign markets by encouraging Thai enterprises to increase their business in foreign countries through activities such as trade fairs and marketing events to promote Thai products and services, brand awareness programmes (e.g. Thai Halal products), and improving Thailand's international trade services; (ii) promotion of border and cross-border trade through marketing activities that encourage trade and investment in Thailand's border provinces and special economic zones; and (iii) enhancement of international trade and economic cooperation through FTA negotiations, and promotion of technical cooperation with neighbouring countries (i.e. Cambodia, Lao PDR, Myanmar and Viet Nam), among other actions. The Action Plan also includes a strategy for increasing private sector competitiveness through innovation, technologies and creativity, and for integrating micro, small and medium-sized enterprises (MSMEs) into global value chains.
Question
What is the Thai government's strategy on promoting halal products? Are there specific certification rules for halal imports and exports in Thailand?
Answer
Department of Industrial Promotion (DIP) has a strategy on promoting halal products by raising awareness of halal and enhancing entrepreneurs in related industry through provision of knowledge in order to standardize their products and factories.
DIP has also been reaching out to educate Thai entrepreneurs in halal related industries such as hotels, restaurants, department stores, etc., on halal certification and rules to register for halal certification mark.
2.4 Investment Regime
Page 47, Paragraph 2.50
Thailand has 36 bilateral investment treaties in force, one of which (with the United Arab Emirates) came into force during the period under review. The country also maintains 61 double taxation treaties (DTAs), 3 of which entered into force since the last Review (with Cambodia, Ireland and Tajikistan); previously existing DTAs with India and Singapore were revised during the review period, and a new DTA with the Philippines was concluded and came into force in 2018 (Box 2.2).
Question
1. What is the current progress in drafting the Model BIA?
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Question
2. What is the expected timeframe for completing the Model BIA?
Answer for Q2-Q3
Thailand is in the final stages of revising its Model Bilateral Investment Treaty (BIT Model) to take into account new developments in international investments and to further improve clarity of ISDS procedures.
Once the draft BIT Model receives high level endorsement, it will customize the BIT Model for each negotiating partner. Once this process is completed, Thailand will start BIT negotiations with interested countries.
Question
3. What are the considerations and criteria that determine the priority of future negotiations with other countries?
Answer
Criteria that determine the priority for negotiation takes into account various elements including: (1) the amount of trade and investment flows between Thailand and interested parties; (2) the willingness of the parties to negotiate; and (3) the urgency or need to update or renegotiate existing BITS.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly affecting Imports
3.1.5.2 Safeguards
Page 62, Paragraph 3.52
A domestic producer of a like or directly competitive product may file a petition to the DFT under the MoC. After being checked by the Department, the petition is passed to the Committee on Safeguard Measures for a determination. The DFT may also submit petitions to the Committee on its own initiative, based on evidence of increased imports and injury to the domestic industry. The initiation of an investigation is published in the Royal Gazette and local newspapers, in Thai and in English. The DFT must inform petitioners and other known interested parties.
Question
Since the notice of initiation about the safeguard investigation is published in Thai and English, can the petition of domestic producers also be published in both Thai and English?
Answer
Interested parties are welcome to present their views or comments pertaining to the investigation in English. Generally the petition would be available in Thai language unless the domestic producers are willing to provide the petition in both Thai and English voluntarily.
3.3 Measures Affecting Production and Trade
3.3.5 Government procurement
Page 94, Paragraph 3.190 and footnote
Thailand introduced an electronic government procurement system (e-GP system) in April 2010. The Comptroller General's Department is responsible for the development and promotion of the system.
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The system started with pilot projects covering a limited number of procurement entities and procurement methods, and was gradually extended to other procurement entities, with the aim of including all government procurement contracts. During the review period, the e GP system concluded its Phase 3 projects and entered Phase 4 projects on 24 August 2017. Phase 4 projects are aimed at bringing the system in line with the new Act and, in particular, enabling the selection method and the specific method in the system. According to the authorities, the e GP system helped to save 8.26% of the budget for the completed procurements. Thai Government Procurement. CoST Thailand. Viewed at: http://www.gprocurement.go.th/new_index.html
Question
Currently, the said website is only in Thai. In order to improve transparency and accessibility for businesses, does Thailand plan to provide key information in English on the website?
Answer
Thailand published laws and regulations related to government procurement in Thai and English languages on the website www.gprocurement.go.th. For the international price tender method, however the solicitation notifications shall be at the discretion of the head of State agency whether to be in the Thai or English language.
3.3.7 Intellectual property rights (IPRs)
3.3.7.8 Copyright and related rights
Page 110, Paragraph 3.253
The amendments further establish a separate cause of action against the illegal recording of films in movie theatres ("camcording"),...
Question
1. According to the Copyright Act, any person reproducing a copyright work without authorization should be held criminally liable. Why have Sections 28/1 and 69/1 of the Copyright Act been amended to include provisions specifically dealing with "camcording"?
Answer
Sections 28/1 and 69/1 were added by the Copyright Act (No. 3) B.E. 2558 (2015). The rationale for the amendment was the recognition of the need to address the unauthorized reproduction of a cinematographic work in a cinema, which causes economic harm to the movie industry and right holders.
Question
2. How many cases heard have resulted in imprisonment or fines under the aforementioned provisions?
Answer
Since the entry into force of the camcording provision, there have not been many legal actions taken by rightholders.
Question
3. How effective have the aforementioned provisions been?
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Answer
The cinemas have generally placed the sign warning criminal liability of camcording at their premises. Even though there are not many legal actions taken under this provision, the said sign has relatively been an effective tool to suppress the camcording.
Page 110, Paragraph 3.254
Copyright owners may opt for takedown under the new Computer Crime Act (No. 2) B.E. 2560 (2017), which provides for a permanent injunction to block websites that have online IP-infringing content. Under the Act, where there is an offensive dissemination of computer data, an officer may, with approval from the Minister of Digital Economy and Society (MDES), file a motion with evidence to the court requesting the cessation of dissemination or deletion of such computer data from the computer system…
Question
1. What is the rationale for the amendment of the Computer Crime Act (No. 2) B.E. 2560 (2017), which provides for a permanent injunction to block websites that have online IP-infringing content? Please explain the provisions in more detail.
Answer
The rationale of the amendment law as mentioned above is to create an effective channel to restrict the proliferation of IPR infringing content in the form of online or on the websites as well as to protect the intellectual property infringement in suitable with the rapid change of technology.
The provision under the amended Computer Crime Act 2017 relating to intellectual property is section 20 (3) of the Act; a computer data constituting a criminal offence under the law relating to intellectual property or other law, provided that such computer data is, by nature, against public order or good morals of the public and a request is made by the official under such law or the inquiry official under the Criminal Procedure Code. With the approval of the Minister, the competent official may file with the Court of competent jurisdiction a motion, accompanied by supporting evidence, for an order compelling the discontinuance of the proliferation of the computer data or deletion thereof from a computer system.
Question
2. How effective have the aforementioned provisions been? What are the stakeholders' opinions on this amendment?
Answer
Since the amended Computer Crime Act entered into force in 2017, rights owners have made use of site blocking mechanisms under the Act to combat online infringement. As of October 2020, courts have issued orders to block or disable access to copyright infringing contents for approximately 1,500 URLs.
Question
3. What exactly does "an offensive dissemination of computer data" mean? If the majority of a website's content is legal and only a fraction infringes IP rights, must the said website still comply with the aforementioned provisions? What percentage of infringing content may the website contain to still comply with these provisions?
Answer
In case that part (not all) of the website infringes IPR, a measure to deal with this situation can be disability of the URL linking to the particular IPR infringing content on the website. If all contents of the website infringe IPR, the website can be closed.
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4 TRADE POLICIES BY SECTOR
4.3 Energy
4.3.1 Introduction
Page 127, Paragraph 4.58
The Oil Fuel Fund Act B.E. 2562 (2019) came into effect in 2019, and is aimed at stabilizing fuel prices in Thailand in the event of a fuel crisis. According to the Act, an Oil Fuel Fund Office, and an Oil Fuel Fund Administration Committee, were set up. Oil fuel fund money comes from levies on domestic petroleum product consumption except jet fuel.
Question
1. What are the mechanisms and objectives (e.g., fuel type) for stabilizing fuel prices?
Answer
The capital rate of fuel is a mechanism used to maintain appropriate domestic retail fuel levels for the purpose of stabilizing fuel prices.
Question
2. What is the origin of the reasoning for excluding jet fuel from the Oil Fuel Fund?
Answer
As jet fuel is consumed by commercial airlines which is not only domestic usage but also international usage, therefore, jet fuel is excluded from the Oil Fuel Fund.
Page 128, Paragraph 4.61
The Government has been implementing a number of policies, mainly domestic measures such as subsidies and various incentive programmes, to reach these targets. These subsidies, however, have been generating significant costs to the economy. In addition, prices of energy products are monitored or controlled (Section 3.3.6.4). For certain products, such as natural gas for vehicles (NGV), diesel, and liquefied petroleum gas (LPG), retail prices were set below the cost of production, resulting in government subsidies to cover price discrepancies. In recent years, Thailand has been focusing on promoting the use of renewable energy, not only through incentives in the form of corporate income tax and import tariff exemption or reductions offered by the BOI (Section 3.3.1), but also through other incentive programmes (Table 4.8).
Question
1. The government has implemented subsidies on NGV, diesel, and LPG. Have these subsidies led to wastefulness in the use of fossil fuel?
Answer
Thailand subsidised NGV, Diesel, and Liquefied Gas to make the domestic retail price suitable for the living of the people. However, in recent years, Thailand provides various incentives to promote renewable energy consumption.
Question
2. Has the ENCON Fund complied with the principles of National Treatment?
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Answer
According to Section 26 of Energy Conservation Promotion Act B.E. 2535 (1992), a private organisation entitled to a grant or subsidy under Section 25(3) shall be a juristic person under Thai or foreign laws, whose business is directly related to energy conservation or environment protection and correction of environmental problems arising from energy conservation, and which does not have political or profit oriented objectives.
Please visit http://www.eppo.go.th/images/law/ENG/nation2.pdf for more details.
4.3.2 Hydrocarbons
Page 131, Paragraph 4.72
In accordance with the Foreign Business Act B.E. 2542 (1999) and the Petroleum Act B.E. 2514 (1971), foreign investors must obtain licences, issued by the Ministry of Commerce, if they wish to engage in: petroleum exploration; or the production and/or distribution of petroleum products. Oil and gas exploration and production rights are granted by the Ministry of Energy with the approval of the Cabinet. Royalty rates range from 5% to 15% in 2020, and the compulsory exploration period is six years. The concession is for 20 years, and the total exploration area of any single concessionaire may not exceed five blocks of 20,000 km2. Concessionaires are allowed to sell or otherwise dispose of the petroleum produced, insofar as they meet their royalty and tax obligations.
Question
Regarding foreign investors that engage in the production and/or distribution of petroleum products, please provide relevant regulatory information and criteria.
Answer
Please refer to Petroleum Act B.E. 2514 (1971) at:
https://www.krisdika.go.th/data//document/ext810/810273_0001.pdf.
For more information, please visit Department of Mineral Fuels's website at:
https://law.dmf.go.th/public/law/index/main/id/95.
4.5 Services
4.5.1 Financial services
Page 139, Paragraph 4.109
A foreign commercial bank may be established in Thailand under either of two forms: as a foreign bank branch or as a subsidiary. Representative offices of foreign banks may not provide commercial banking services. Foreign bank branches may operate a maximum of three service points. However, as part of the Government's measures to liberalize the banking sector, in 2012, existing foreign bank branches were given the option to apply for a subsidiary licence and thus establish up to 40 service points, provided they met the relevant requirements, including a minimum paid-up capital of THB 10 billion. Foreign bank branches are eligible to apply for a subsidiary licence if their country of origin meets any of these conditions: it has signed a free trade agreement with Thailand; it offers reciprocal market access to Thai banks; or it has "significant business relations with Thailand". In 2013, the Thai bank market was opened again for applications to establish new foreign bank subsidiaries, with similar eligibility conditions as in 2012, and a minimum paid-up capital of THB 20 billion; as a result, licences were granted to two banks, whose subsidiaries have been in operation since 2015. Once foreign banks obtain a subsidiary licence, they are subject to the same regulations and supervision standards as domestic commercial banks, and are able to provide the same range of services as local banks.
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Page 140, Paragraph 4.112
In the context of the AEC process, ASEAN member countries are working towards the liberalization of the banking sector in the region for "Qualified ASEAN Banks" (QABs). QABs are to be given market access and operational flexibility in the host country on a reciprocal basis through the conclusion of bilateral arrangements. Thailand completed negotiations with Malaysia, and is currently negotiating with Indonesia, Myanmar and the Philippines. The QABs commitments between Malaysia and Thailand were inscribed in the 8th package of commitments under the ASEAN Framework Agreement on Services (AFAS) and were ratified. In addition, ASEAN members agreed to a 5-year Roadmap for Regulatory Coherence (2020-2025) to enhance convergence of banking regulations and supervision across ASEAN towards international standards. Moreover, members have been negotiating the 9th package of commitments on financial services under the AFAS, which will be superseded by, and its results incorporated into, the ASEAN Trade in Services Agreement (ATISA), signed in April 2019.
Question
According to Paragraph 4.5 of the Secretarial report, Thailand mentioned further liberalization of the banking sector, such as branches of foreign banks applying for a subsidiary license. In addition, ASEAN member countries are working toward liberalization of the banking sector in the region for "Qualified ASEAN Banks". Considering that the mentioned liberalization of the banking sector is aimed at foreign bank subsidiaries and ASEAN banks, has Thailand considered further opening market access for foreign banks to set up branches? If so, could Thailand please elaborate on the relevant plans and timeframe?
Answer
Regarding opening market access, Thailand will not be granting new licenses in the near future as new foreign bank subsidiary licenses have recently been granted and further liberalization is being considered through bilateral negotiations (reciprocal market access) under the Qualified ASEAN Banks (QAB) framework. Therefore, in the foreseeable future, there may be new foreign bank licenses granted to banks from ASEAN countries.
In terms of entity forms, global regulatory reform since 2008 has favored a more decentralized and more independent business structure such as establishment of foreign-owned subsidiaries. Therefore, new licenses for foreign bank branches are very less likely in the next few years. However, as the current trend of banking business is moving towards digitization, this leads us to explore the possibilities for new types of digital-only license, such as, virtual banking license. However, any further details or timeframe are still not available as this is still under our internal review.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.1 National Policies towards Structural Reform
EEC
Page 7, Paragraph 3.9
EEC is the strategic area designated to be a centre of the targeted industries development to support high value-added, high-technology, and innovative economy. EEC initially focuses on three Eastern provinces, namely Rayong, Chonburi, and Chachoengsao. The EEC development plan includes world- class transport infrastructure development (rail, road, marine, and air transport), digital infrastructure development, smart cities, tourism development, and human resource and R&D development. Investors who invest in EEC will receive various generous incentives compared to who investment in other areas, for example, longer corporate income tax exemption (maximum 13 years), fixed rate of personal income tax for foreign executives and staffs at 17%, and longer period of land and real estate lease (50+49 years).
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Question
How long does it usually take to conduct an environmental impact assessment (EIA) review involving an EEC investment case?
Answer
It would take the same review process of EIA under Environmental Law.
Question
If a foreign investor plans to invest in the development of a smart city (e.g., advanced manufacturing industrial zone) in the EEC, will the relevant EIA review process be the same as that for ordinary cases? Or is there an accelerated review mechanism?
Answer
It would be required to apply the same process per the EIA review.
Question
If there is no accelerated review mechanism, could the Thai government consider formulating relevant promotional measures to shorten the time for EIA review so as to expedite the implementation of relevant investment cases and thereby encourage foreign investors to increase investment in the EEC?
Answer
It is possibly in the consideration.
3.2 Sectoral Policies
3.2.1.2 Border trade facilitation
Page 11, Paragraph 3.33
Thailand is a member of the WTO which has an obligation to comply with WTO Trade Facilitation Agreement (WTO TFA) for simplification and harmonization of customs procedures. The latest update in March 2020 for Thailand on the Implementation of WTO TFA in provisions amounts to 97% have already been executed.
Question
Could Thailand explain which aspects of the WTO TFA implementation have not been completed? When are these provisions expected to be completed?
Answer
At the present (November 2020), Thailand has not yet completed Article 11.1 and Article 5.3, expect to be implemented in 2022, and 2024 respectively.
Intellectual property
Page 19, Paragraph 3.73
Another important legislative development is the Computer Crime Act (No. 2) B.E. 2560 (2017), which amended the Computer Crime Act B.E. 2550 (2007). After the revised Act entered into force on 24 May 2017, right owners have been able to make use of the site blocking mechanisms under the Act to combat online infringements.
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Question
With respect to the aforementioned site blocking mechanisms under the Computer Crime Act (No. 2) B.E. 2560 (2017), can these mechanisms be used to deal with trademark infringements?
Answer
Yes.
3.3 Regional Trade Arrangements and Economic Cooperation
3.3.1 FTAs
Page 24, Paragraph 3.99
Thailand is in the process of negotiating FTAs with Pakistan, Turkey, and Sri Lanka. Since 2019, Thailand has undertaken internal procedures reform and engaged in consultations with the European Union and the European Free Trade Area (EFTA) with a view to complete internal process in 2020.
Question
Could Thailand explain its main considerations and criteria for selecting potential FTA partners?
Answer
The value and growth of international trade between Thailand and potential countries.
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TURKEY
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19, 3.2, Pages 5-6
It is stated in the Government Report that " Moreover, there is the Twelfth National Economic and Social Development Plan (NESDP) 2017-2021 which is the main tool for the implementation is set aside to drive the country to achieve its goals in the first period. There are four complementary strategies in the NESDP 2017-2021; advancing infrastructure and logistics; developing science, technology, research and innovation; developing regional, urban and economic zones; and strengthening international cooperation and development. Additionally, annual budget allocation, integrate development issues WT/TPR/G/400 • Thailand - 6 - to formulate specific strategic investment plans are also taken into account. To effectively achieve the objectives of the National Strategy and the NESDP 2017-2021, many concrete measures are indicated."
Question
Could Thailand provide detailed information about the four complementary strategies in the NESDP 2017-2021?
Answer
The 20-year National Strategy is the first long-term development plan of Thailand. It addresses strategic direction, guiding principles and key development areas for long-term development of Thailand. It, hence, does not elaborate detailed guidelines or actions for development. Meanwhile, the Twelfth Economic and Social Development Plan is the 5-year plan. Taking consideration of changes and their impacts on the country development, the 12th Development Plan is designed to be the plan for driving the National Strategy to actions for the first five years. The 12th Development Plan includes 10 strategies. Six of ten are main strategies and another four are supporting or complementary strategies.
The six primary strategies of the 12th Development Plan includes: (1) Strengthening and Developing the Potential of Human Capital; (2) Creating a Just Society and Reducing Inequality; (3) Strengthening Sustainable Economic Development and Competitiveness; (4) Green Growth for Sustainable Development; (5) National Security for the Country's Development towards Prosperity and Sustainability; and (6) Public Administration, Corruption Prevention, and Good Governance in Thai Society.
In addition, four supporting or complementary strategies are set for efficiently enabling the aforementioned six strategies, including (7) Advancing Infrastructure and Logistics; (8) Science, Technology, Research, and Innovation Development; (9) Regional, Urban, and Economic Zone Development; and (10) International Cooperation for Development. The objectives of the four complementary strategies of the 12th Development Plan are presented below:
Strategy 7 Advancing Infrastructure and Logistics
1) To improve transportation and trade facilities and infrastructure, while having effective regulatory mechanisms to ensure efficiency and transparency in transportation businesses, in order to increase the country's competitiveness and improve the people's quality of life.
2) To ensure energy security, improve energy efficiency, increase the use of alternative and clean energy, and expand Thailand's energy-related business opportunities in ASEAN.
3) To increase the efficiency and coverage of digital services to be country-wide at reasonable cost, as well as encourage new digital businesses and innovations while developing appropriate cyber security systems and ensuring consumers' rights.
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4) To expand and improve the efficiency of water supply infrastructure services nationwide, reduce non-revenue water, and establish an integrated management mechanism for water supply operations.
5) To promote infrastructure-induced industries to reduce imports and increase the country's economic capacity.
Strategy 8 The Development of Science, Technology, Research, and Innovation
1) To strengthen and enhance the capability of advanced science and technology to support higher value-added in target production and service industries.
2) To create opportunities for farmers, community enterprises, and SMEs to access and utilize technology.
3) To develop innovation that helps reduce inequality and enhance the quality of life.
4) To integrate the management systems of science, technology, research, and innovation to move in the same direction.
Strategy 9 Regional, Urban, and Economic Zone Development
1) To distribute regional growth and economic opportunities more equitably.
2) To develop the city centers of each province to become livable cities for all.
3) To develop and revive key economic areas to grow ecologically and improve the living standards of their communities.
4) To develop new economic areas to enhance competitiveness and attain sustainable growth.
Strategy 10 International Cooperation for Development
1) To utilize fully Thailand's strategic location as a key connecting point between several economic corridors to promote the country's economic and social development.
2) To expand cross-border trade and investment opportunities and emerge as an attractive and productive investment and production base.
3) To play a more influential part on the international stage by promoting Thailand's constructive role under various cooperation initiatives, and supporting development under the Sustainable Development Goals (SDGs).
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19, 3.4, Page 6
It is stated in the Government Report that ""Thailand 4.0" is also one of the key development policies supporting the National Strategy. To continue with the digital economy theme, the Government targets to encourage the utilization of digital technology in order to deal with emerging issues, such as, smart cities, the digitalization of public sector, transport and logistics system to improve the quality and reach of public services, and thus pursue more inclusive growth outcomes. Thailand 4.0 is set as a key engine to transform Thailand into a value-added, innovative and knowledge-based economy, among others, the Government targets to explore the concept and best practices of digital government as well as the integration of digital technologies into public administration to improve its quality and effectively and efficiently deliver public services. The Government also aims to apply emerging digital technologies via Thailand 4.0 to promote structural reform for better governance and regulation of the digital economy. Basically, this policy is based on the following core elements; advancing technology and innovation to increase productivity of ready high performing industries; developing new technology-based industries with great growth potential; enhancing Thailand's
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Question
Could Thailand further elaborate on the outcomes and performance of the "Thailand 4.0." policies adopted by the Government?
Answer
Thailand 4.0 is a key enabler of a stable, prosperous, and sustainable country by using Value-Based Economy in order to get rid of being in a middle-income trap and decrease the degree of inequality at the same time. The decentralisation of development also assists Thailand in achieving those goals. The recent outcome of the policy of Thailand 4.0 has affected the increase in the investment of New S-Curve industry which contains biofuel and biochemical industry, medical hub, digital industry, automotive industry and logistics, and automation and robotics industry. Thailand has been developing an Eastern Economic Corridor (EEC) and also another infrastructure to embrace the expansion of the targeted industries. The R&D expenditure has increased from 0.5% of GDP in 2013 to 1.11% in 2018 and the public and private investment in R&D is 30:70.
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TURKEY – ADDITIONAL QUESTIONS
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
1.2.5 Balance of payments, Page 26, Paragraph 140 (1.1 Main Features of the Economy, Table 1.1 Selected macroeconomic indicators, 2015-19, Page 12)
It is stated in the Secretariat Report that, " Given its strong current account surplus, Thailand accumulated substantial foreign exchange reserves over the last five years, which reached USD 224.3 billion at end-2019, equivalent to more than 12 months of imports (Table 1.1). As noted above, said strong external position was in part responsible for the appreciation of the baht until the beginning of 2020. Thailand's external debt increased moderately during the period under review in absolute terms but remained at around 30% of GDP. In 2019, the external debt-GDP ratio was 31.7%, and the debt-service ratio was 6.8%. This reflects Thailand's lower dependency on external financing compared to other emerging market economies. Amid the global economic fallout caused by the COVID-19 pandemic, Thailand's surplus in the current account has continued to narrow and capital outflows have increased; however, the level of foreign reserves remains adequate."
Question
In addition, it is known that Thailand has swap agreements and transactions with countries like China and Japan. Could Thailand provide information on the actual limits and the utilization of these transactions during the COVID-19 pandemic and the impact of currency swap mechanisms on its foreign trade with the relevant countries?
Answer
Currently, the BOT has the bilateral swap agreements (BSA) with both China and Japan. Each BSA is established on different purposes, mainly to support trade and investment settlements between both countries (in order to promote the use of local currencies and bolster confidence of private sector on the availability of local currencies), as well as to provide the financial safety net in case of liquidity shortage due to the balance of payment difficulties.
Although, we have observed the increase in trade volume with China after the BSA was signed (while the BSA with BOJ was just launched few weeks before the pandemic escalated in Thailand and the BSA with JMOF is aimed to response to BOP difficulties, so better omitted in this case), but we view that it may be overclaimed to conclude that the rise in trade volume was due to the BSA itself, as there are many factors involved. In addition, during the COVID-19, none of these BSAs have been activated since our level of foreign reserves is adequate and public sectors have launched supportive policies to help private sectors and household to ensure the financial stability of Thai economy as a whole.
As mentioned earlier, below are the objectives and amounts of each BSA as follows:
1) The BSA with the Ministry of Finance of Japan aims to strengthen the stability of the financial markets and further develop growing economic and trade ties between the two countries. The maximum amount is USD 3 billion.
2) The Bilateral Local Currency Swap Arrangement with the Bank of Japan is acted as an additional channel of central bank's liquidity provision to financial institution who experienced liquidity shortage in local currencies (Baht & Yen) which will reinforce the stability of the financial system and further promote the usage of local currencies. The maximum amount is 240 billion THB or 800 billion JPY.
3) The BSA with the People Bank of China, is aimed to support trade and investment in local currency for cross-border trade and investment settlement. The maximum amount is 370 billion THB or 70 billion CNY.
Source: https://www.bot.or.th/Thai/PressandSpeeches/Press/News2561/n4761e.pdf
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3.1.4.2 Import licensing, Pages 58-59, 3.43
It is stated in the Secretariat Report that "Under the Export and Import Act B.E. 2522 (1979), Thailand applies both automatic and non-automatic import licensing requirements on a number of products (Table 3.7). Licences are issued electronically or manually (depending on the product) by the MoC. The MoC may issue notifications allowing other government authorities to issue such licences. Product coverage may change, and the changes are announced through MoC notifications, and through Thailand's notifications to the WTO under the Agreement on Import Licensing Procedures. The authorities stated that all changes have been notified to the WTO."
According to "Table 3.7 Products subject to import licensing requirements, 2020", Thailand applies "Non-automatic licences" to products such as "Building stone - marble, travertine, ecaussine and other calcareous monumental or building stone; and - marble, travertine and alabaster, granite; other stone" with the purpose of "administering the importation and utilization of marble and building stone."
Question
Could Thailand provide clarification about the non-automatic import licensing procedure and its timing of implementation ?
Answer
Importers submit an import license application to the Department of Foreign Trade, Ministry of Commerce which they will be granted the license within 7 working days. However, the Ministry of Commerce is in progress of developing e- service for such products.
3.2.4.4 Customs free zones, Page 67, Paragraph 3.74
It is stated in the Secretariat Report that, "Customs has been administering a free zones (FZ) programme since 2000, aimed at promoting investment into, and exports from, these zones. Under this programme, goods imported and moved into an FZ by a licensee operator are exempted from: import duties, VAT, excise tax, export duties on re-exports, and standards and quality control requirements. In addition, they may be eligible for export tax refund/exemption schemes. In October 2019, Thailand launched the E-Commerce Customs Free Zone in the Eastern Economic Corridor (EEC) area, with the aim of promoting exports of goods through electronic commerce; the Zone was not yet operational at the time of drafting this report. Currently, there are 119 FZs (84 in 2014), with a total of 394 commercial and industrial units operating within them. The main sectors of activity are distribution centres, logistics, packaging, and production of auto parts. The authorities indicated that the share of exports from FZs in total exports averaged 10.2% annually over the period 2015-19.
Question
Could Thailand further explain the structure of the E-Commerce Customs Free Zones, as well as the existing and additional, if any, benefits that could be offered for businesses operating in the mentioned zone?
Answer
There is no definition of "E-Commerce Customs Free Zone" directly. However, E-Commerce Free Zone practically means the duty-free zone within the Special Economic Zone for electronic commerce activities in the Eastern Development Zone. According to the policy announcement of the Eastern Economic Corridor Policy Committee for the benefits of customs duties in the commercial operation are as follows:
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1) Save cost due to the simplified Customs procedures
2) Grant import duty exemption
3) Expedite Customs procedures through modern technology employment such as controlling the movement of goods/inventory by using electronic key systems and using QR CODE technology to record products information
4) Promote and support e-commerce products exportation in Thailand, such as local products, to be sold to other countries through an online trading platform.
4.5.2.1 Telecommunications, Page 144, Paragraph 4.131
It is stated in the Secretariat Report that, "The National Broadcasting and Telecommunications Commission (NBTC) remains the sectoral regulator. Its regulatory powers cover telecommunications, broadcasting, and television/radio communication businesses. During the review period, the Act on the Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services was amended twice, in 2017 and 2019. According to the authorities, both amendments served to improve the structure of the NBTC for better governance in response to the latest developments in telecommunications technology. The 2019 amendment granted the NBTC power to also regulate satellite communication business in Thailand."
Question
Could Thailand provide information whether the latest situation in the telecommunications market reflects more liberalization than its GATS commitments in the telecommunication sector?
Answer
Foreign ownership in broadcasting and telecommunications services are as follows:
1) Broadcasting services
The Broadcasting Business Act B.E. 2551, the Organization to Assign Radio Frequency and to Regulate the Broadcasting and Telecommunications Services B.E. 2553 (2010) and secondary law prescribe that the broadcast licensee, including service licensee, network licensee and infrastructure licensee shall be a juristic person with Thai nationality. Moreover, a person authorized for the licensee must have Thai nationality, while a shareholder person who has voting right and number of directors not less than 75% of the licensee must have Thai nationality
2) Telecommunications services
In accordance with section 7 and 8 of Telecommunications Business Act B.E. 2544 and amendments, the NBTC categorizes telecommunications license as Type 1, Type 2 and Type 3. Each telecommunications license has a range of different conditions on foreign ownership as follows:
Type 1: license granted to the telecommunications business operator who operates without his or her own network for telecommunications services which are deemed appropriate to be fully liberalized.
Type 2: licenses granted for telecommunications operators whose services are provided for limited group of people, have or do not have their own networks, and pose no significant impacts on free and fair competition or public interest and consumers.
Type 3: licenses granted for telecommunications operators who have their own networks, run business which intends to provide services for general public, have significant impacts on free and fair competition, or public interests that require consumer protection.
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The applicant for Type 2 and Type 3 licenses shall not be a foreigner under the Foreign Business Act. In this regard, foreign ownership and control is limited to 49% for Type 2 and Type 3 licenses which are facilities-based telecommunications.
4.5.4 Tourism, Page 155, Paragraph 4.201
It is stated in the Secretariat Report that "Thailand launched an e-visa system on 15 February 2019 to facilitate foreign visitors requiring entry visas. The system was introduced to visa applicants in China, France, and the United Kingdom. The authorities noted that the Government plans to extend the e-visa service globally to all its diplomatic missions; it aims to provide an effective and convenient channel for foreign nationals to apply for visas to enter Thailand."
Question
Could Thailand provide detailed information about the e-visa system and the time period foreseen for the possible extension of it to other countries?
Answer
The e-Visa system was launched on 15 February 2019 to provide service in China, and subsequently in the UK and France in June 2019, to facilitate foreign visitors.
The plan is to gradually extend the e-Visa service to all Thai diplomatic missions abroad. On average, it takes less than three working days to process and approve an e-Visa application.
QUESTIONS REGARDING THE REPORT BY THE GOVERNEMENT - WT/TPR/G/400
3.2.1.2 Authorized Economic Operator (AEO), Page 11, Paragraph 3.32
It is stated in the Government Report that "Thailand's Authorized Economic Operator (AEO) Program has been administered by Thai Customs Department since 2011. The program is carried on in accordance with WCO SAFE Framework of Standards to secure and facilitate global trade. There are two categories of AEO operators in Thailand: Importer/Exporter and Customs broker. The AEO operators will enjoy the benefits such as simplified customs procedures covering import, export and re-export, speed and fast process for tax/duty refund and compensation, facilitated and simplified process for placing a guarantee on transhipment and transit, tax incentive including export under the Mutual Recognition Arrangement (MRA). As of 31 March 2020, there were 382 AEO operators; 196 AEO Importers/Exporters and 186 AEO Customs brokers. Thai Customs Department has signed AEO-MRA with Hong Kong, China (June 2015), the Republic of Korea (December 2016), and Singapore (June 2018). Under the MRAs, Thai Customs Department takes into account the status of the other AEO programs when conducting its own risk assessment. In addition, Thai Customs Department has its strategy to expand the AEO-MRA in order to strengthen cooperation with other foreign Customs Administrations and enhance the security level of global supply chain and facilitate global trade."
Question
Could Thailand explain with which countries it plans to make new MRA deals?
Answer
Thailand is under negotiation for AEO-MRA with Malaysia, Australia, Japan, and China including ASEAN MRA
3.2.4 Industry, Page 14, Paragraph 3.41
For elaborating on the "Action Plan on Industrial Development" introduced in paragraph 3.40, it is stated in the Government Report paragraph 3.41 that "To achieve the objectives of this Action Plan, the Government has set five sectors of targeted industries as the "New Engine of Growth" namely (1) Agricultural and bio-technology, (2) Health, wellness, and bio-med, (3) Smart device, robotics, and mechatronics, (4) Digital, and (5) Creative industry, culture, and high value services.
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Furthermore, restructuring and strengthening competitiveness of primary industries and supporting industries are also emphasized in order to support the targeted industries. These primary industries include petrochemical and chemical, energy, metallurgical, packaging, machinery, mold, and mine industries."
Question
Could Thailand elaborate on the conformity of its possible actions to support the foregoing targeted industries with the WTO Agreement on Subsidies and Countervailing Measures?
Answer
The industrial sectors under the Action Plan are the targeted industries that the Ministry of Industry considered as the important engines of economic growth. With a view to achieving the goals set forth under the Action Plan, the Ministry of Industry's measures focus on creating good business environment to promote investment in the targeted industries.
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UKRAINE
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.1 Customs procedures, valuation, and requirements
3.1.1.1 Registration and documentation
Page 50, Paragraph 3.11
The Report states: "Importing a standard container of goods takes 50 hours and costs USD 233 for border compliance, and four hours and USD 43 for documentary compliance; exporting the same container requires 44 hours and USD 223 for border compliance, and 11 hours and USD 97 for documentary compliance."
Question 1
Could Thailand kindly elaborate on justification of the costs for border compliance and documentary compliance?
Answer
Thailand, as a member of the World Trade Organization (WTO), is obliged to follow "Agreement on Implementation of Article VII of the general on tariffs and trade 1994" by using GATT valuation for customs value calculation and implement it as an internal law according to the Customs Act B.E 2560 (2017).
Question 2
How can Thailand ensure that these fees and formalities are in compliance with Article VIII of GATT 1994?
Answer
The Thai Customs Department has Customs Notification No. 118/2549 to ensure that fee and formalities are implemented according to compliance with Article VIII of GATT 1994.
3.1.2 Tariffs
3.1.2.1 Tariff structure
Page 51, Paragraphs 3.19-3.21
According to the Report, Thailand's tariff structure remains relatively complex: non-ad valorem duties account for 8% of tariff lines, and tariff rates range from zero to 226% when ad valorem equivalents are excluded, and 557.4% when they are included.
Question 3
Could Thailand kindly specify whether it intends to reduce the applied tariff rates for goods that are subject to tariff peaks?
Answer
The imposed tariff rates are not higher than the bound rates. Moreover, some of these tariff rates are reduced by Free Trade Agreement negotiations. However, when revising the possibility of
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Question 4
Does Thailand envisage simplification of its tariff structure over the next years?
Answer
Thailand revises its tariff structure on a regular basis and the tariff rates have been reduced according to the country's economic situation. Should there be any circumstances such as changes in economics, trade or investment which make tariff reductions deem appropriate or necessary, the tariff structure will be revised accordingly.
3.3 Measures Affecting Production and Trade
3.3.5 Government procurement
3.3.5.1 Overview
Page 91, Paragraph 3.181
The Report mentions, that Thailand has been an observer in the WTO Committee on Government Procurement since 2015. However, it is not yet a signatory of the WTO Agreement on Government Procurement (GPA).
Question 5
Ukraine would appreciate if Thailand could inform whether any further steps to join the WTO GPA are considered, taking into account the observer status of Thailand in the WTO Committee on Government Procurement since 2015.
Answer
Currently, Thailand does not have a plan to become GPA member.
3.3 Measures Affecting Production and Trade
3.3.6 Competition policy and price regulation
3.3.6.4 Price regulation and control
Pages 100-103, Paragraphs 3.214-3.217
Under the Report, the Central Commission on Prices of Goods and Services (CCP) has a right to prescribe rules, procedures and conditions with regard to the production, import, export, purchase, distribution or storage of the controlled goods or services. The 229 goods and services on the price monitoring list are watched over by the Department of Internal Trade.]
Question 6
Could Thailand kindly provide information on how the CCP and the Department of Internal Trade coordinate their activities?
Answer
The Central Committee on Prices of Goods and Services (CCP) was established under the law on prices of goods and services. CCP's key powers and duties are to issue notifications prescribing any good or service as "a controlled good or service," to impose measures to apply to "the controlled
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The CCP consists of the Minister of Commerce as Chairperson, Permanent Secretary of the Ministry of Commerce and Secretary General of the Thailand Board of Investment as Vice Chairpersons, and at least four but no more than eight eminent persons whom the Cabinet appoints as committee members and at least half of them shall be from the private sector. The Director-General of the Department of Internal Trade (DIT) is a committee member and secretary to the committee.
The Director-General of the DIT acting as the Secretary-General of the CCP will be the highest executive person responsible for the performance of the CCP, that is, administrative work of the CCP and subcommittees. Furthermore, the Director-General of the DIT has the duty to coordinate with Provincial Committees on the Prices of Goods and Services (PCP) and has the powers and duties under the law, such as studying, analysing, or researching goods or services, their prices as well as business operation. S/he is also, among others, to monitor changes of prices of controlled goods and services and behaviours of business operators to report to the CCP and to receive complaints from individuals.
Question 7
Which agency is responsible for the enforcement of prescribed rules, procedures and conditions for import and export?
Answer
Customs Department, Ministry of Finance, and Department of Foreign Trade, Ministry of Commerce.
Question 8
Do the Customs Authorities of Thailand use the price-monitoring list to collect duties and taxes in connection with importation or exportation?
Answer
Thai Customs does not use the price-monitoring list of the Department of Internal Trade to collect duties and taxes in connection with importation or exportation.
Page 102, Paragraphs 3.215-3.217
The Report indicates that the legal framework for price regulation remains unchanged, and many goods and services are subject to price monitoring or control (e.g. food, farm inputs, medical supplies, and delivery services for online shopping).
Question 9
Could Thailand kindly explain the reason for price control on delivery services for online shopping?
Answer
Currently, trading services and/or freight forwarding services for online businesses are prescribed as "Controlled services" which must be displayed prices, details regarding sales of goods and services, as well as other fees and charges through electronic or online systems. At present, Thailand does not impose any controlling measure, i.e. price control on these services.
In practice, prescribing goods or services as "Controlled goods or services" is only a process of listing them to be closely monitored. Only when it is necessary, appropriate regulatory measures will be issued pursuant to the powers of the Act on Prices of Goods and Services B.E. 2542 (1999), such as, requiring business operators to declare to the Department of Internal Trade (DIT) quantity, place of storage, cost, and expenses of such goods or services.
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The DIT also prescribes rules, measures, and conditions to be followed by business operators with regards to production, purchase, or distribution of goods or services, etc. The "controlled goods or services" list is intended to enable the CCP to determine appropriate regulatory measures efficiently and timely.
4 TRADE POLICIES BY SECTOR
4.1 Agriculture
4.1.3 Agricultural policies
4.1.3.1 Legal, institutional, and policy framework
Pages 114-115, Paragraph 4.9
The Report states, that the Ministry of Agriculture and Cooperatives (MOAC) follows its 5-year Agricultural Plan (2018-22) and the Organization Plan, both of which are in compliance with Thailand`s 20-Year National Strategy (2018-37). The MOAC`s plans aim to achieve "secured farmers, prosperous agriculture, and sustainable agricultural resources", where farmers` income is to be increased by more than USD 3,134 by 2022.
Question 10
In light of the challenges faced as a result of COVID-19, is Thailand planning to make amendments to its 5-year Agricultural Plan (2018-22), the Organization Plan or the five strategies contained therein? If so, could Thailand, please, elaborate on the possible key elements?
Answer
While facing with COVID-19 challenges, Thailand did not make any amendment to our 5-year Agricultural Plan (2018-22). In short terms, Thailand implement the post COVID-19 Relief projects both in Departmental level and Provincial level. The following are the examples:
1) One Stop Service on soil and fertilizer for community. This project aims to enhance productivity and reduce cost of production by applying technology to analyze soil and fertilizer that suitable for the area.
2) One Tambon One Farmer Group. This project aims to promote the Sufficiency Economy Philosophy (SEP) and develop the new theory agriculture learning center in all sub-district in Thailand.
3) Enhancing Collaborative Farm by modern agriculture and market linkage. This project aims to increase production efficiency and reduce production costs for farmers or groups of farmers by applying appropriate technology and innovation, including a network of cooperation from various sectors. Also, we focus on improving the production level to standard quality products in line with market demand and downstream industry needs.
4) Adjust the structure of production, collection, and processing of farmers institutions to support agricultural products. This project aims to raise the potential of farmer institutions to be a center for agricultural product management throughout the agricultural production chain. And to support and promote farmer institutions as a key community mechanism to facilitate members and farmers in the cultivation, collection, storage and processing of agricultural products.
In the long run, Thai government responses to the COVID-19 impact on food and agricultural systems by implementing a "3S" policy aims to position Thailand as the kitchen of the world, both in times of normalcy and crisis.
The first "S" is Safety. Food Safety is one of the important missions of the Ministry of Agriculture and Cooperatives. We focus on producing agricultural and food products that are safe and meet
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The second "S" is security. Thailand is committed to being a source of agricultural and food production for people around the world and prepare to be ASEAN food reserve. During the coronavirus pandemic, Thailand has not imposed and export ban but fully supported international trade to be carried out in accordance with the market mechanism
The last "S" is Sustainability. Ministry of Agriculture and Cooperatives attaches great importance to the concept of sustainable management of resource such as water, soil, and fisheries as well as sustainable fisheries management.
4.5 Services
4.5.1 Financial services
Pages 135-136, Paragraph 4.95
Under the Report, Thai financial institutions are classified into two types: (i) depositary corporations (commercial banks, state-owned specialized financial institutions (SFIs), and saving cooperatives and credit unions); and (ii) non-depositary corporations (e.g. mutual funds, insurance companies, and securities companies).
Table 4.10 presents information on number and assets of financial institutions, including pawn shops, leasing companies, credit unions etc.
Question 11
Could Thailand, please, describe features of legal regulation, requirements and supervisory functions of state authorities regarding activity of the following financial institutions:
- pawn shops;
- leasing companies (financial leasing);
- credit unions;
- micro financial companies?
Answer
Pawnshops
Pawnshop is regulated under the Pawnshop Act B.E. 2505 (1962). It must comply with the regulatory requirements under the Pawnshop Act and subordinate regulations. An operator may not operate as a pawnshop until s/he has obtained a license under the Pawnshop Act and paid the appropriate fees based on geographical location and whether the pawnshop is state-owned or private.
The agency governing pawnshops is the Ministry of Interior. Licensing authority in Bangkok is the Department of Provincial Administration. Licensing authority in other provinces is the Governor of each province. And Department of Social Development and Welfare operates the state pawnshop in the name "Government Pawnshop". Under the Pawnshop Act, pawnshops are defined as any premise accepting a pledge as security for a loan in its normal operations, where the pledge's value does not exceed THB 100,000 and where there is an agreement or understanding, directly or impliedly, that the redemption can be made later on.
For legal interest rate:
1) If the pledge's value is less than or equal to THB 2,000, the interest rate is 2% per month.
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2) If the pledge's value is greater than THB 2,000, the interest rate is 2% per month for the first THB 2,000 of the Pawn Value, and 1.25% per month for any remaining Pawn Value.
Credit Unions
Cooperative Auditing Department (CAD) is the cooperative auditor under Section 69 of the Cooperatives Act, B.E. 2542 (1999) and the additional amendments. CAD is responsible for audit cooperatives and farmers groups to be in accordance with auditing standards and regulations set by CAD, and also develop an inspection system to build reliability and transparency for cooperatives and farmer groups by establishing the Cooperative Registrar's Regulation regarding the Cooperatives' Inspection B.E. 2563 (2020).
CAD has developed financial and accounting management for cooperatives and farmers groups by strengthening their capacity on doing accounts, financial statements, and upgrading the quality level of the internal control by establishing the Cooperative Registrar's Regulation on the accounting of cooperatives and farmers groups, B.E. 2563 (2020). CAD has supported accounting and financial statements of cooperatives and farmer groups to be beneficial to the economic decisions of users of financial statements and correspond with financial reporting standards. Moreover, CAD has responsibility for developing technological innovations and cooperative accounting programs to assist and manage auditing.
The supervision of cooperative management according to the Cooperatives Act, B.E. 2542 (1999) and the additional amendments are under the supervision of the cooperative registrar (CPD) such as:
1) Ministerial Regulation issued under the Cooperative Act, B.E. 2542 (1999)
- On dividends per shares
- On maintaining cooperative liquid assets
2) Announcement of the Ministry of Agriculture and Cooperatives on determining ratio of maintaining cooperative liquid assets
3) Announcement of the National Cooperative Development Board
4) Regulations of the Cooperative Promotion Department (CPD) regarding discussions on the implementation of laws, regulations, orders, announcements of the CPD or the cooperative registrar, rules, and cooperative regulations
5) Announcement of the Cooperative Promotion Department regarding guidelines on measures of cooperative financial transactions for safety and prevention of money laundering and countering terrorism financing
6) Relevant laws.
Cooperative Auditing Department, Cooperative Promotion Department, Bank of Thailand, and the Ministry of Finance have discussed drafting ministerial regulations according to Section 89/2 of the Cooperatives Act B.E. 2542 and the amendments in B.E. 2562 for the operating and supervising all thrift and credit cooperatives, and credit union cooperatives. There are 13 issues including:
1) Draft: Ministerial Regulations on determining the size of thrift and credit cooperatives, and credit union cooperatives
2) Draft: Ministerial Regulation on determining qualifications and other prohibited characteristics of the cooperative board of directors, and cooperative managers of thrift and credit cooperatives, and credit union cooperatives
3) Draft: Ministerial Regulation on defining authorities and duties of the operating committee of thrift and credit cooperatives, and credit union cooperatives
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4) Draft: Ministerial Regulation on lending and credit of thrift and credit cooperatives, and credit union cooperatives
5) Draft: Ministerial Regulations on deposits, debt, and creation of contingencies including loans or guarantees of thrift and credit cooperatives, and credit union cooperatives
6) Draft: Ministerial Regulation on maintaining funds of thrift and credit cooperatives, and credit union cooperatives
7) Draft: Ministerial Regulation on asset management and maintaining cooperative liquid assets of thrift and credit cooperatives, and credit union cooperatives
8) Draft: Ministerial Regulations on determining deposits or investments of thrift and credit cooperatives, and credit union cooperatives
9) Draft: Ministerial Regulation on good governance of thrift and credit cooperatives, and credit union cooperatives
10) Draft: Ministerial Regulation on asset classification and provision of thrift and credit cooperatives, and credit union cooperatives
11) Draft: Ministerial Regulations on accounting preparation and disclosure of financial statements, audit, and appointment of auditors
12) Draft: Ministerial Regulations on information recording and reporting of thrift and credit cooperatives, and credit union cooperatives
13) Draft: Ministerial Regulations on supervising concentration of financial transactions of thrift and credit cooperatives, and credit union cooperatives.
Remark: The Council of Ministers has approved the draft No. 1 – 7 and 9 – 13 of Ministerial Regulations (except No. 8) and the Office of the Council of State has considered the draft No. 1 – 3, 6, 9, 11 – 12 of Ministerial Regulations.
4.5.1.2 Insurance
4.5.1.2.2 Legal framework
Pages 141-144, Paragraphs 4.118-4.129
The Report describes the regulatory developments in legal and institutional framework for the insurance industry that have occurred in Thailand during the period under review.
Question 12
Would Thailand, please, describe features of legal regulation in the field of life and non-life insurance and provide the links to appropriate legislative acts in English?
Answer
Life Insurance Act and Non-Life Insurance Act provide scope of legislations from entering into market of insurance company until exit from the market. Both Acts also provide scope of supervision on insurance company and policyholder protection scheme.
Link to translation of both Acts is as follows: https://www.oic.or.th/en/consumer/rule/6/335 and https://www.oic.or.th/en/consumer/rule/7/335.
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Question 13
What are legal requirements for life and non-life insurance contracts (please, provide the links to appropriate legislative acts in English)?
Answer
Fundamental terms and conditions of both Life and Non-Life insurance contract will be subjected to Section 861 – 897 of Thai Civil and Commercial Law. Also, insurance policy and premium rate shall be approved by the Registrar of both Life Insurance Act and Non-Life Insurance Act.
Question 14
Could Thailand kindly describe legal framework for providing protection of rights of financial services consumers and elucidate supervisory functions of the State in this regard?
Answer
The Registrar of both Life Insurance Act and Non-Life Insurance Act may review and arrange for resolution on any dispute on insurance contract. In addition, OIC provides mediation and arbitration services for both disputed parties.
Life Insurance Act and Non-Life Insurance Act provide that in case the insurance company has its license revoked, insurance creditors have preferential rights on assets of security deposit and reserve that placed with the Registrar. Also, Life Insurance Fund and Non-Life Insurance Fund will provide remedy to insurance creditors with the limit of THB 1 million.
Question 15
What are state guarantees for protection of accumulated capital under life insurance contracts?
Answer
Under Life insurance Act, there is a Fund to be called the "Life Insurance Fund" which was established as a juristic person, for the purposes of protecting creditors who are entitled to receive payment of insurance debts, in the event that a company is bankrupt or is subject to revocation of the license to undertake life insurance business. The Fund are financed by 0.1% levy on the gross written premium of each insurance company. Neither Fund is guaranteed by the Stated. Payment are limited to THB 1 million per claimant.
Question 16
What are the requirements for persons providing life and non-life insurance services?
Answer
According to Life Insurance Act B.E. 2535 (1992) and the amendments, and Non-Life Insurance Act B.E. 2535 (1992) and the amendments, all persons providing life and non-life insurance services or insurance intermediaries need to be licensed. Licenses are subject to appropriate applications. For insurance intermediaries, there are two types of licenses, "Agent" and "Broker".
The requirements for Agent
All a life and non-life insurance agent shall have the following qualifications:
(1) is sui juris;
(2) is domiciled in Thailand;
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(3) having studied life or non-life insurance at an institute prescribed by the Office of Insurance Commission or have passed an examination concerning life or non-life insurance knowledge, in accordance with the program and procedures prescribed by the Office of Insurance Commission;
(4) not being declared as a person of unsound mind, incompetent or quasi incompetent;
(5) not having been sentenced to imprisonment upon final judgment, for offenses relating to property committed dishonestly, unless the sentence was completed at least five years prior to the date of application;
(6) is not a bankrupt;
(7) is not a life or non-life insurance broker;
(8) not having a life or non-life or life insurance agent or broker's license suspended, or its issuance or renewal is suspended in accordance with the law on life or non-life insurance;
(9) not having had a life or non-life insurance agent or broker license revoked within the period of five years prior to the date of application for a license; and
(10) not having had a bad background or having acted in any manner which displays a lack of responsibility or due care that a person ought to have in his disposition and circumstance, in accordance with the procedures, conditions and time prescribed by the Office of Insurance Commission.
A person who qualified all requirements and wishes to be a life or non-life insurance agent of any insurance company shall submit to the Registrar an application for a life or non-life insurance agent license for such insurance company, together with a letter from the company expressing its intention to have such person be its life or non-life insurance agent, as well as a certificate confirming that such person satisfactorily passed a training program organized by the Office of Insurance Commission, or other training according to the program and procedures prescribed by the Office of Insurance Commission.
The requirements for Broker
For brokers, there are level of licenses, at "natural person" (individual) level and at "Juristic Person" (corporate) level:
1) Natural Person (Individual) Level
A natural person who applies for a life or non-life insurance broker's license must not be a life or non-life insurance agent or director, manager, officer, or employee of any company and shall have the following qualifications:
(1) is sui juris
(2) is domiciled in Thailand
(3) having studied life or non-life insurance at an institute prescribed by the Office of Insurance Commission or have passed an examination concerning life or non-life insurance knowledge, in accordance with the program and procedures prescribed by the Office of Insurance Commission
(4) not being declared as a person of unsound mind, incompetent or quasi incompetent
(5) not having been sentenced to imprisonment upon final judgment, for offenses relating to property committed dishonestly, unless the sentence was completed at least five years prior to the date of application
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(6) is not a bankrupt
(7) not having a life or non-life insurance agent or broker's license suspended, or its issuance or renewal is suspended in accordance with the law on life or non-life insurance
(8) not having had a life or non-life insurance agent or broker license revoked within the period of five years prior to the date of application for a license
(9) not having had a bad background or having acted in any manner which displays a lack of responsibility or due care that a person ought to have in his disposition and circumstance, in accordance with the procedures, conditions and time prescribed by the Office of Insurance Commission
2) Juristic Person (corporate) level
A juristic person which applies for a life or non-life insurance broker's license must have the following qualifications:
(1) have characteristics as prescribed by the Commission such as minimum capital fund
(2) have a head office in Thailand
(3) have a representative, who is responsible for the operation, with qualifications as prescribed by the Commission
(4) have the systems and personnel for the operation of a life or non-life insurance brokerage in accordance with the rules, procedures, and conditions prescribed by the Commission
(5) not have had its life or non-life insurance broker's or agent's license suspended, or its issuance or renewal is suspended in accordance with the law on life or non-life insurance
(6) not have had its life insurance broker's license, or non-life insurance broker's license under the law on life or non-life insurance, revoked, within five years prior to the date of application for a license
(7) not have had a bad background, or never to have acted in any manner which indicates a lack of responsibility or due care that a person ought to have in his disposition and circumstance, in accordance with the procedures, conditions and time prescribed by the Commission.
Question 17
Would Thailand, please, describe Thai pension system: features and principles of its functioning, organizational and legal framework, participants of the system, state guarantees?
Answer
Pension System in Thailand
Thailand's pension system was completely restructured in late 1990s. According to World Bank, the system comprises of three pillars.
The first pillar is the state pension comprising of Old Civil Service Scheme and Social Security Fund. This scheme is intended to secure the basic needs.
The second pillar consists of the Government Pension Fund. The Government Pension Fund (GPF) is a defined contribution pension system for civil servants.
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The third pillar is a privately financed personal provision and is voluntary. Provident Fund is an occupational pension. Unlike normal savings, it is incentivized with tax advantages and can be used as a means of closing pension gaps. In addition, voluntary retirement saving can be made through personal saving plans, including the Retirement Mutual Funds, which is opened for all including the employees not covered by provident funds.
In 2015, the government introduces the National Saving Fund (NSF), a new voluntary retirement savings program. It is intended to cover Thai citizens who are not covered by any pension schemes, especially the informal workers.
Question 18
What are available life insurance programs and pension programs/plans (please, provide the links to appropriate documents in English)?
Answer
There are many types of life insurance products in Thailand consisting of Endowment with and without dividend, Whole life, Term, Pension, Mortgage, Unit-Linked, Universal life, Health, Critical Illness, Accident and Total Permanent Disability.
Moreover, for Pension, the coverage is to provide regular income when insured are at the age of 55 and up to 85 or more than 85 years by reference to being alive. For more information, please visit
OIC website through this link https://www.oic.or.th/en/node/89363.
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.1 National Policies towards Structural Reform
S-Curve & New S-Curve industries
Page 6, Paragraph 3.7
In accordance with Thailand 4.0 policy, the Board of Investment (BOI) announced 7-year investment promotion strategy (2015-2021) with an aim to lead the country towards innovation-driven economy by offering incentives for targeted industries in order to accelerate R&D, innovation, and human resource development in Thailand.
Question 19
Could Thailand kindly elaborate on the preliminary results of the investment promotion strategy mentioned in the report?
Answer
In the investment policy impact assessment report (2018)* shows that Investment incentive schemes under the 7-year strategic investment promotion policy (2015-2021) contributed 418 billion baht to Thailand's GDP growth. The scheme is streamlining the ongoing transformation of Thailand's economic structure towards an advanced economy driven by science and technology.
The policy has contributed positively to Thailand's economy. In the years 2015 and 2016, the investment incentive scheme boosted real GDP by 3.31%, private consumption by 1.59%, private investment by 6.03%, exports by 4.29%, and employment by 0.46% on average.
The report also indicates that promoted projects have high added-value of revenue. In the years 2015-2017, the added-value of revenue of promoted projects was 40.28% on average. The service
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New measures launched in 2019 have not been evaluated yet.
* Policy evaluation is conducted by third party for every 2 years. The investment policy assessment report of 2018 was first released in 2019 and the next report is expected to be published in 2021.
3.2 Sectoral Policies
3.2.2 Agriculture
Page 11, Paragraph 3.34
The Report states, that "During 2015-19, the agricultural GDP increased from USD 19.73 billion in 2015 to USD 7.56 billion in 2019, with an average growth rate of 2.3% per year."
Question 20
Could Thailand kindly re-confirm the numbers of growth provided?
Answer
WTO has already corrected the number to USD 27.56 billion.
3.2.6 Intellectual property
Page 19, Paragraph 3.71
According to the Report, Thailand is in the preparation process for its accession to the WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty and the Hague Agreement Concerning the International Registration of Industrial Designs.
Question 21
Could Thailand kindly elaborate on the stage of its accession to the WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty and the Hague Agreement Concerning the International Registration of Industrial Designs?
Answer
Thailand is amending the Copyright Act B.E. 2537 (1994), which consists of two phases:
The first phase includes the preparation for Thailand's accession to the WCT. The draft amendment for this phase was approved by the Cabinet in September 2020 and is now forwarded to the parliament for consideration. Upon the completion of the amendment, Thailand will be ready to join the WCT as approved by the National Legislative Assembly in December 2018.
The second phase covers Thailand's preparation for the accession to the WPPT. The Department of Intellectual Property is currently working on the draft amendment of the Copyright Act for this phase.
With regard to the Hague Agreement, Thailand is currently amending the Patent Act. The amendment includes the groundwork for Thailand's accession to the Hague Agreement. The draft amendment was available for public comments during 30 September - 31 October 2020. After this, the Department of Intellectual Property plans to submit the draft amendment to the Cabinet by the end of 2020.
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3.2.10 COVID-19 related policies and measures
Page 23, Paragraph 3.96
The Report states, that due to the COVID-19 outbreak, the Government has elevated the implementation of measures to the highest level by virtue of Section 5 of the Emergency Decree on Public Administration in Emergency Situations B.E. 2548 (2005) on 26 March B.E. 2563 (2020). Since March 2020, the Government has approved three phases of COVID-19 Relief Package to mitigate the economic impacts from the pandemic, focusing on economic stimulus package and healthcare spending.
Question 22
Could Thailand kindly provide more detailed information on the key elements of COVID-19 Relief Package, particularly, in the agriculture sphere?
Answer
Two key elements of package that affect agriculture sphere are (1) rental fees levied on lessees under the obligation to pay rents on land used for residential or agricultural purpose having been waived for one year, and (2) three monthly installments of electronic cash transfers are made to farm households in the amount of 5,000 baht per month.
3.3 Regional Trade Arrangements and Economic Cooperation
3.3.1 FTAs
Page 24, Paragraph 3.99
The Report mentions the process of negotiating FTAs by Thailand.
Question 23
Would Thailand, please, inform on the existing preconditions and procedures for deciding on the beginning of negotiations for the conclusion of a Preferential Agreement?
Answer
Thailand's priorities for FTA negotiations are:
1) To enhance opportunities on trade and economic
2) To protect and preserve country's trade and investment interests.
Therefore, Thailand consider negotiating FTAs with countries who have potential trade growth with Thailand in recent years.
The negotiating processes are as follows:
1) Pre-negotiations
(1) Undertake studies and public hearing
(2) Solicit views from industries and stakeholders
(3) Submit the negotiations framework and position to the Cabinet for approval
(4) Cabinet approves.
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2) Negotiations
(1) Rounds of negotiations
(2) Conclusion and legal scrubbing
(3) Signing an Agreement.
3) Pre-ratification
(1) Article 178 of the 2017 Constitution requires a Parliamentary approval within 60 days
(2) Publish the Agreement in the Royal Gazette.
4) After the Agreement enters into force
Parliament approves
• Ratification
• Monitoring, reviewing, and remedies
Parliament disapproves
• Dismissal/Amendment.
3.3.2 WTO
Page 25, Paragraph 3.106
The Report notes, that on Electronic Commerce, Thailand has participated in discussions under the Work Programme on Electronic Commerce and co-sponsored the Joint Statement on E-commerce Initiative launched in January 2019 during the Informal WTO Ministerial Gathering (IMG) in order to strongly support negotiations on trade-related aspects of e-commerce.
Question 24
Could Thailand kindly elaborate on its vision with regards to further activities under Work Programme on Electronic Commerce within the WTO and the role of the WTO in promoting regulatory environment in facilitating electronic commerce?
Answer
Thailand as a co-sponsor of WTO Joint Statement on E-commerce Initiative strongly supports the next step of negotiations on trade-related aspects of E-commerce.
We recognise the importance of E-commerce as one of game changers in digital economy that substantially affects pattern of international trade in goods and services.
During the past years, we have witnessed the negotiations on E-commerce Chapter under a number of bilateral and regional Free Trade Agreements. We are therefore of the view that it is timely for multilateral negotiations on E-commerce under WTO with a view to promoting open, transparent, non-discriminatory, and predictable regulatory environments and facilitating E-commerce while ensuring that consumers are well protected. Moreover, WTO is a significant forum that Members could explore and discuss new trade issues as digital economy or E-commerce.
Thailand views that the negotiations under the JSI are of great importance and that members should keep the momentum going in order to reach an inclusive and balanced outcome for the MC12 in 2021.
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UNITED KINGDOM
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
2 TRADE AND INVESTMENT REGIMES
2.4 Investment Regime
Thailand's FBA affects many business sectors. In recent times certain sectors have been liberalised.
Question 1
Does Thailand have plans to review the remaining sectors (especially those on List 3)? Additionally, would Thailand consider further liberalisations for sectors that could create transition opportunities between professional bodies (e.g. accounting/legal etc.).
Answer
The Ministry of Commerce by Foreign Business Commission reviews categories of businesses in the Lists annexed to the Act annually. Since 2013, the Ministry of Commerce has issued four Ministerial Regulations Prescribing Service Business Not Subject to Application for Foreign Business Permission covering 40 business categories such as securities business under the law on securities and securities exchange, insurance business under the law on insurance, financial institution business, and representative office/regional office.
To review the regulated businesses under the FBA, the regulation promulgation process is required to hold public hearings from stakeholders and sector regulators are held. The result based on pros and cons usually requires sufficient information for the Commission to remove the regulated businesses from the list.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.7 IPRs
We welcome Thailand's progress in combating counterfeiting and piracy, particularly the creation of the Committee on enforcement against intellectual property (IP) infringements, led by the Deputy Prime Minister.
Question 2
Could Thailand explain what it is doing to increase the speed of civil IP enforcement legal actions and increase the level of damages to ensure there is a deterrent to counterfeiting and piracy?
Answer
In tackling with IPR infringement in a quick manner, the preliminary injunction is available in the Civil and Commercial Code and Rules for Intellectual Property and International Trade Cases 1997. The punitive damages are also available in the Copyright Act.
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3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures affecting Production and Trade
3.3.2 Standards and other technical requirements
Paragraph 3.151
Question 3
To ask for clarity around the rules, procedures and conditions for labels of alcoholic beverages. We would also be interested in an update on the 'graphic health warning' labelling requirements.
Answer
1) Labels of alcoholic beverages: Currently Thailand is developing technical document regarding rules, procedures and conditions labelling of alcoholic beverages. The third version has not been finalised on label text yet.
2) Graphic warning labelling: Currently there is no progress.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.5 Government Procurement
Paragraph 3.3.5.2
Legislation, general policies and institutional arrangements
Question 4
Please elaborate on the scope of the Public Procurement and Supplies Administration Act (2017). Does the Act, or equivalent rules, apply to:
a. Public utilities that are government controlled, including for railways, highways, port and airport facilities, urban transport, power/energy and water utilities
b. Regional and local government
c. The procurement of all goods, services, and construction services.
Answer
Public Procurement and Supplies Administration Act B.E. 2560 (2017) applies to the central administration, the provincial administration, the local administration, a State enterprise under the law on budgetary procedures, a public organisation, an independent organ, a constitutional organ, an administrative unit of the Court, a university under supervision by the State, an agency attached to the National Assembly or under supervision of the National Assembly, a State independent agency and any other agency as prescribed in the Ministerial Regulation. It also covers the procurement of all goods, services, and construction services.
Question 5
To what extent do the separate procurement rules put in place by SOEs, universities under state supervision and foreign-located state agencies need to comply with the Public Procurement and Supplies Administration Act (2017) and associated regulations, and what criteria does the Policy Commission use to approve these rules?
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Answer
Under Public Procurement and Supplies Administration Act B.E. 2560 (2017), Section 8 indicate that procurement and supplies administration by a State agency must generate optimal benefits to the State agency and must conform with the value for money principle, the transparency principle, the efficiency and effectiveness principle, and accountability principle. In Section 6 mentions that in order to engender flexibility and expediency of operations of a State enterprise, a university under supervision of the State, a State agency in a foreign country or a work unit of a State agency located in a foreign country or any other State agency as prescribed in the Ministerial Regulation, such State enterprise, university under supervision of the State or State agency may, if it so intends, put in place its own Rules, Regulations or Ordinances relating to procurement and supplies administration in whole or in part, provided that it shall be done in conformity with the rules on procurement and supplies administration framed under this Act unless, in a foreign country where the State agency or a work unit of the State agency is located, laws, practices or local customs specifically exist or provide otherwise.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.5 Government Procurement
Paragraph 3.3.5.2
Legislation, general policies and institutional arrangements
Question 6
Please elaborate on the specific criteria, procedures and conditions overseas suppliers and service providers need to satisfy to participate in Thailand's mandatory registration system for government procurement. For example, can overseas suppliers register at any given time, and is the system accessible electronically and free to use? How long does it take for a supplier to become registered on the system? Are reasons for rejection given to the supplier?
Answer
All suppliers are required to register in order to participation in government procurement. However, overseas suppliers have to submit registration form in-person at The Comptroller's General Department. Online registration is not available. None of the supplier is rejected.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.5 Government Procurement
Paragraph 3.3.5.3
Procurement methods
Question 7
What are Thailand's rules concerning use of technical specifications in tender requirements? Are use of international standards (including safety standards) generally preferred over national or local standards? When descriptive requirements are used in a tender, does Thailand require its procuring entities to consider internationally equivalent goods and services that demonstrably fulfil those requirements?
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Answer
Both international standards and national standards are acceptable. It depends on requirement of procuring entities. Normally, procuring entities will require goods that have Thai Industrial Standard.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.5 Government Procurement
Paragraph 3.3.5.4
Electronic government procurement
Question 8
Are notices published on Thailand's electronic government procurement system summarised in English? Are sub-central entities and public utilities also required to use the electronic government procurement system?
Answer
Procurement notices are published in Thai language without English summary except international bidding, which will be published in English language. All government agencies covered in the Act are required to use the electronic government procurement system.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.5 Government Procurement
Paragraph 3.3.5.2 Legislation, General policies and institutional arrangements and Paragraph 3.3.5.6 Other policy considerations
Question 9
It is noted that Thailand has put measures in place to promote transparency and fair competition. How effective have these been at achieving their objectives? Please elaborate on any other current or planned actions to continue promoting transparency and fair competition.
Answer
The Comptroller General's Department provides the information such as public procurement notices, TOR, or awarded contract on the website. Online bidding is used for preventing collusion and interested suppliers can participate in the procurement. In addition, Thailand has the project called Integrity Pact (IP) that has been used in government procurement in order to prevent corruption. IP is an agreement that is signed by three parties which are government agencies, project owner, and independent observer. Any government procurement that valued above THB 1,000 million will be selected to join this project. Since IP is carried out, it can save millions THB of government budget. Another project named Construction Sector Transparency Initiative (CoST), it is one of the Government's measures to improve transparency and value of money spent on public infrastructure and to prevent corruption.
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3 TRADE POLICIES AND PRACTICES BY MEASURE
3.3 Measures Affecting Production and Trade
3.3.5 Government Procurement
Paragraph 3.3.5.3 Procurement methods
Question 10
It is noted that Thailand still retains preferences for certain domestic suppliers, where use of the "specific procurement method" (direct awards, limited tendering) is permitted. Under what circumstances and for what types of procurement can procuring entities apply these preferences for domestic suppliers and use the "specific procurement method"? How is the list of suppliers that the government wants to promote or support determined?
Answer
Ministerial Regulation Prescribing of supplies that State needs to Promote or Support and Prescribing of Procurement Procedures by the Selection method and Specific Method B.E. 2560 (2017) detailed the type of promote and support supplies as following:
1. Supplies for agricultural promotion and development
2. Supplies for medium-small enterprise and disadvantaged person promotion
3. Supplies for learning purpose
4. Supplies for research promotion and development or provision of educational services
5. Supplies for promotion of innovation
6. Supplies for health and public health promotion
7. Supplies for promotion of stability of energy and natural resources.
4 TRADE POLICIES BY SECTOR
4.5 Services
4.5.2 Communications
4.5.2.1 Telecommunications
During COVID-19 lockdown, Global Travel Retail came to a halt, all bars and restaurants were closed for an extended period, and footfall in retail outlets was much reduced. To some extent, the industry's losses were offset by increased on-line sales. Now, Thailand has passed legislation that will ban e-commerce in alcoholic beverages, commencing in December. Some parts of British industry are concerned this is an over-reaction to the increase in on-line sales that took place during lockdown and that it is perfectly acceptable for a well-regulated e-commerce market in alcoholic drinks to operate in a country like Thailand with a strong imported and local alcoholic drinks market, provided of course that the young are protected.
Question 11a
Will the Thai authorities reconsider the planned introduction of ban on e-commerce in alcoholic beverages, if the industry demonstrates that measures to prevent under-age persons from obtaining alcohol in this way?
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Answer
The process of this legislation has started before the outbreak of COVID-19. Thus, it does not correlate with the COVID-19 pandemic. This notice is a general consideration that the sale of alcoholic beverages should be banned via e-commerce in order to prevent underage drinking. Thailand welcomes demonstration of any practical measures to control time, place and person of online alcoholic beverages buying.
Question 11b
We understand that a proposal to ban all forms of advertising of alcoholic beverages has been under consideration since before the Coronavirus crisis. Any such measure is bound to impact more heavily upon imported products new to the market than on established local products and would thus constitute a barrier to trade. British exporters take their corporate social responsibilities seriously and abide by a voluntary code of practice on advertising.
Can Thailand update on their potential reforms regarding the advertising of alcohol beverages?
Answer
Currently, advertising alcoholic beverages in Thailand still has to follow the Alcohol Control Act B.E. 2551 (2008).
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.1.2 Trade and business facilitation
3.1.2.1 Ease of doing business
Paragraph 3.16 (4)
Question 1
Please elaborate on the services sectors that have been removed from the Foreign Business Act, B.E. 2542 (1999) to exempt business from the foreign business license requirement in order to facilitate business operations and promote trade and investment in Thailand.
Answer
The Ministry of Commerce has reviewed categories of businesses in the Lists annexed to the Act annually in order to promote and attract foreign investment. Since 2013 The Ministry of Commerce has issued 4 Ministerial Regulation Prescribing Service Business Not Subject to Application for Foreign Business Permission (40 business categories) as follows:
- Securities business under the law on securities and securities exchange,
- Insurance business under the law on insurance,
- Financial institution business
- Representative office/regional office.
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3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.3 Regional Trade Arrangements and Economic Cooperation
3.3.5 RCEP
Paragraph 3.123
Question 2a
The report gives an update on RCEP negotiations, noting it is expected to be a modern, comprehensive, high-quality, and mutually beneficial economic partnership agreement. Will Thailand be looking to accede to other such agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership?
Answer
Recently, the special committee created by the parliament has already concluded the CPTPP study and it is expected to submit the study to the Cabinet for consideration within November 2020.
According to the results, there were supporting groups who see benefits from CPTPP and concerning groups that still have concerns in joining the CPTPP. However, Thailand still needs to create more awareness and understanding and need a period of time to revise the domestic regulations to be in line with CPTPP.
Question 2b
The UK would also like to understand more broadly Thailand's plans for its future trade negotiations.
Answer
Thailand's trade negotiations aim at accomplishing five key benefits.
1) Export expansion
2) Increased investment inflow and outflow
3) Reduced production cost by securing alternative and new sources for material
4) Human resource and technology development
5) Supplement existing trade agreements WTO, ASEAN, FTAs and other sub-regions arrangements.
Thailand's plan for future trade negotiations
1) Thailand - EU
2) Thailand - EFTA
3) Thailand - EAEU
4) Thailand - UK
5) ASEAN - Canada
6) CPTPP.
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GENERAL QUESTIONS
Question 1
The UK would like to ask for further information on the Maximum Procurement Price/Median Pricing Policy methodology and process.
Answer
Under the Public Procurement and Supplies Administration Act B.E. 2560 (2017), "Focal price" means the price used as a basis for comparing prices offered by persons tendering proposals, in respect of which procurement may actually be materialised in the following orders:
1) The price derived from the calculation in accordance with the rules prescribed by the Focal Prices Committee
2) The price derived from the supplies index-price database established by the Comptroller-General's Department
3) The standard price prescribed by the Bureau of the Budget or other central agencies
4) The price derived from market-price investigation
5) The price from the last procurement over two finance years
6) Any other price in accordance with the rules, procedures or practices of the State agency concerned.
In the case where there exists the price under (1), the price under (1) shall first be adopted. In the case where the price under (1) does not exist but there exists the price under (2) or (3), the price under (2) or (3) shall first be adopted, provided that in considering whether the price under (2) or (3) shall be adopted, prime regard shall be had to the interest of the State agency. In the case where prices under (1), (2) and (3) do not exist, the price under (4), (5) or (6) shall be adopted provided that in considering whether the price under (4), (5) or (6) shall be adopted, prime regard shall be had to the interest of the State agency.
Question 2
The UK would like to ask for clarification on how products are selected to be included in the National List of Essential Medicines (NLEM).
In Thailand, selecting medicines to be included in the National List of Essential Medicine (NLEM) is primarily determined on the aim to prevent and resolve the health problem in Thailand. Moreover, cost and economic impact on the national economy are the key elements to be determined in the medicine selection process. The selection requires sufficient evidence-based literature in combination with the opinions of experts from relevant areas of expertise, including medicine, pharmacy, public health, and economics. In addition, an effective scoring system, ISafE score, is used to determine the safety, efficacy, and effectiveness of the medicine. The information on drug quality including dosage form, storage, stability, dosage, expiration date, efficacy, administration, and patient compliance are required to consider whether the medicine should be included in the NLEM. Regarding the safety concern, none of the medicines in the safety monitoring programme or used as an off-label indication will be included in the list of essential medicines.
Question 3
The UK would like to understand whether Thailand would consider opening up foreign participation in the workforce by looking at mutual recognition of qualifications or simplifying qualification conversion options?
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Answer
Thailand views that the mutual recognition of qualifications would help facilitate the movement of natural persons, therefore Thailand encourages related professional councils to explore possibility to facilitate movement of natural persons through MRAs. ASEAN MRAs are among the good examples.
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UNITED KINGDOM – FOLLOW-UP QUESTIONS
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
Follow-up on answer to Question 2
We note that a technical document on 'Rules, procedures and conditions for labelling of alcoholic beverages' is under consideration. Will these Rules etc be notified to the WTO for comment by Thailand's trading partners, and when can we expect this to happen?
Answer
The improvement of technical document is still in progress. Thailand will certainly notify the trading partner countries once the new version of the Technical Document is revised.
Follow up on answer to Question 5
Thank you for the information on Thailand's mandatory registration system for government procurement. Please can you confirm whether there is a cost for overseas suppliers to register to use this system?
Answer
Registration for overseas suppliers at the Comptroller General's Department is free of charge.
Follow-up on answer to Question 11
We note that advertising is still subject to the Alcohol Control Act B.E. 2551 (2008). We understand this to mean that Thailand has no plans to revise the regulations under the Act at this time and welcome the fact that no stricter measures are likely. However, we would like to ask Thailand to reconsider the existing regulations, which severely restrict the ability of exporters to promote their products and bring them to the attention of potential consumers in Thailand. This means Thai consumers have less choice.
The UK spirits industry takes its corporate social responsibilities seriously and follows a code of practice on advertising which precludes health claims and the targeting of minors. Is this something the authorities would be prepared to look at again?
Answer
Alcohol advertising under the Alcohol Control Act 2008, Section 32, paragraph 2, does not prevent any alcohol advertisement. Therefore, entrepreneurs can import alcoholic beverages for sale and marketing in Thailand.
The consumption of alcohol is a major factor affecting health and society which causes negative effects on the health and body of the drinkers. In addition, it also causes harmful effects and damages to others, such as disturbances and quarrels, violence, crimes, and road accidents, etc. According to the Alcohol Control Act B.E. 2551 (2008) aims which focus on controlling the sale and consumption of alcoholic beverages by measures such as limiting the date, time, place of sale and consumption. The purpose is to limit accessibility of individuals, especially young people, and new drinkers. Therefore, Thailand currently does not have any plans to revise the Act.
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UNITED STATES
QUESTIONS REGARDING THE REPORT BY THE SECRETARIAT - WT/TPR/S/400
2 TRADE AND INVESTMENT REGIMES
2.3.2 Regional and preferential agreements
2.3.2.1 Overview
Page 39, Paragraph 2.23
The Secretariat Report states that negotiations between "Thailand and the European Union, and between Thailand and the European Free Trade Area (EFTA), respectively, have been put on hold since 2014. However, the current Government, elected in June 2019, has launched an internal procedure on the possibility of resuming negotiations with the European Union and EFTA in the near future."
Question 1
Is Thailand still considering restarting negotiations with the European Union and EFTA? If so, please describe the Government's plans in this regard.
Answer
1) The European Union and the EFTA are important trading partners of Thailand. Free Trade Agreements with both blocs would help Thailand remain competitive in both markets, taking into consideration the advantages enjoyed by countries that have concluded an FTA with the EU and the EFTA during the period that negotiations with Thailand have been put on hold.
2) Currently, for the resumption of the negotiations with the EU, Thailand has completed the impact study and nationwide stakeholder consultations. The next step is to seek the approval of the Cabinet for resumption of negotiations, possibly around the end of this year. For EFTA's, such internal process is still undergoing and we expect to submit the proposal for Cabinet's approval around Q1 or Q2 of next year.
3) Discussions with the EU and the EFTA in preparation for the resumption could be conducted in parallel with our above-mentioned internal process.
Page 39, Paragraph 2.23
The Secretariat's report states, "On a bilateral level, Thailand continues trade negotiations with Pakistan, Sri Lanka and Turkey."
Question 2
Please explain the status of these negotiations, including the progress made to date and the remaining areas.
Answer
Thailand-Turkey
Thailand and Turkey started negotiations for a Free Trade Agreement in 2017. The first phase of the agreement negotiations would only cover trade in goods, while investments and trade in services will be incorporated into the free trade agreement in the next stage. The 6th round of negotiations was held in December 2019, while the next round had to be postponed due to the recent pandemic. The on-going negotiations are focusing on Market Access and Rules of origin. Customs Procedures and Trade Facilitation as well as economic cooperation have been concluded where other areas such
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Thailand-Pakistan
Thailand and Pakistan launched FTA negotiations in 2015 with trade in goods as the first negotiation agenda. To date, 9 rounds of negotiations have already been taken place with the conclusion of 12 chapters out of 13 chapters under the FTA pact. The negotiations have already concluded the tariff reduction modality. The next negotiation round will be held after Pakistan is ready to exchange the offer lists. The two countries aim to sign the FTA pact in 2021.
Thailand-Sri Lanka
Thailand and Sri Lanka started negotiations for a comprehensive Free Trade Agreement in 2018 covering Trade in Goods, Trade in Services, investment and economic cooperation. The 2nd round of negotiations was held in September 2018, two months after the kick-off negotiation in July 2018. The next round, however, was held back by the newly elected Sri Lankan government. The negotiations will be resumed once Sri Lanka has a new negotiating committee.
3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.1 Customs procedures, valuation, and requirements
3.1.1.1 Registration and documentation
Page 48, Paragraph 3.1
"the Customs Act B.E. 2560 (2017)… aims to modernize Thailand's customs law by easing customs procedures and bringing more transparency. It reduced incentives and rewards to customs officers and whistle-blowers." As stated, the Customs Act reduced the maximum awardable allowance for customs officers and whistle-blowers to 5 million baht (USD 150,000). However, this still provides a significant incentive for bias or wrongdoing.
Question 3
Will Thailand consider further reduction of this maximum reward or its elimination?
Answer
The Customs Department would like to address that we have been aware of the justification in the customs control process for importers, exporters, and relevant stakeholders. The studying on proportionality and effects of incentives and rewards paid to customs officers and whistle-blowers, is ongoing.
3.1.2 Tariffs
3.1.2.3 Applied tariff
Page 54, Paragraph 3.28
The Secretariat Report notes that, "[a]ccording to Thailand's Tariff Schedule of 2020, provided by the authorities and also notified to the IDB, the applied rates on a number of tariff lines are higher than the bound rates. The authorities indicate that this is not the case, using as evidence a 2017 notification from the Ministry of Finance (in Thai only)."
Question 4
Please explain what the 2017 notification from the Ministry of Finance states.
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Question 5
Please explain how the 2017 notification is evidence that Thailand's applied tariff rates in 2020 are not higher than its WTO bound rates, despite Thailand's Tariff Schedule of 2020 indicating the opposite.
Question 6
If any applied tariff rates are higher than Thailand's WTO bound rates, please explain how Thailand intends to promptly bring them into compliance with the bound rates.
Answer Q4, Q5, Q6
Thailand's applied tariff rates under The Ministry of Finance RE: Exemption Duty, Decreasing and Increasing Customs Duty Tariff rate under the obligations of Marrakesh Agreement Establishing The World Trade Organization, dated 10 November B.E. 2560 (2017) totally comply with the bound rates under WTO, while applied tariff rates under other Notifications besides the said Notification are applied to non-WTO members. The exporters/importers from WTO member countries must indicate their origin during the customs procedures in order to get the WTO applied tariff rates.
Additionally, according to the notification, Thailand committed tariff rates for Barley other than seed under the tariff code 1003.90.00 at 27%, for Other cereals under the tariff code 1008.90.00 at 27%, for Toothpicks of bamboo under the tariff code 4421.91.60 at 20% and for Toothpicks of wood other than bamboo under the tariff code 4421.99.80 at 20%, all in ad valorem rate. When concerned products imported from WTO member's country, the rate as mentioned above will be applied.
3.1.5 Anti-dumping, countervailing, and safeguard measures
3.1.5.1 Anti-dumping and countervailing measures
Page 61, Paragraph 3.4.7
The Secretariat notes that: "The legislation on anti-dumping and countervailing measures – the Anti-Dumping and Countervailing Act, B.E. 2542 (1999) - was amended on 22 May 2019, and the amendment came into effect on 18 November 2019. The authorities indicated that they will notify the WTO once the translation into English is completed.
Question 7
Please provide an update as to when the legislation will be notified to the appropriate WTO committees
Answer
Still in the process and will be notified to the WTO when the translation into English is completed.
3.2 Measures Directly Affecting Exports
3.2.5 Export finance, insurance, and guarantees
Page 69, Paragraph 3.83
The United States notes that the Export-Import Bank of Thailand (EXIM Thailand) takes part in the Portfolio Guarantee Scheme (PGS) of the Thai Credit Guarantee Corporation (TCG), a state-owned specialized financial institution governed by the Ministry of Finance, that helps Thai exporters and entrepreneurs who have funding needs.
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Question 8
Please explain whether the PGS has been used to finance the export of Thai agricultural and food products. If so, please notify this agricultural export credit guarantee program in the WTO Export Competition Questionnaire (ECQ).
Answer Q8 and Q10
BAAC provides an export insurance service as EXIM Bank's agent for BAAC's exporters to insure against non-payment under the contract. BAAC will forward the application from BAAC customer to EXIM Bank for its consideration. For forward contract, BAAC provides it with the objective of hedging foreign exchange risk to BAAC customers.
Page 70, Paragraphs 3.86-88
Question 9
How does EXIM Thailand establish its terms and conditions for its export credit support (given that Thailand is not one of the Participants to the OECD Arrangement on Officially Supported Export Credits)?
Answer
The terms and conditions for EXIM Thailand's credit support depends on internal policy of the Bank which takes into account of various factors, such as type of credit, risks involved, current market practice, etc.
Page 70, Paragraph 3.87
The Secretariat's report states that EXIM Thailand is the only state-owned financial institution providing export credit insurance. However, the United States notes that the Bank for Agriculture and Agricultural Cooperatives (BAAC), a state-owned financial institution governed by the Ministry of Finance, also offers Export Insurance and Forward Contract (i.e., foreign exchange risk hedging) trade services. (Source: https://www.baac.or.th/baac_en/content- product.php?content_group_sub=3&content_group_semi=1)
Question 10
Please explain whether BAAC's export insurance and forward contract programs should be notified in the WTO Export Competition Questionnaire (ECQ). If so, please notify BAAC's agricultural export financing programs in the ECQ.
Answer
BAAC provides an export insurance service as EXIM Bank's agent for BAAC's exporters to insure against non-payment under the contract. BAAC will forward the application from BAAC customer to EXIM Bank for its consideration. For forward contract, BAAC provides it with the objective of hedging foreign exchange risk to BAAC customers.
3.3.3 Sanitary and phytosanitary requirements
Page 86, Paragraph 3.155
According to the Secretariat's report, "Thailand is an active participant in the WTO Committee on Sanitary and Phytosanitary Measures. During the review period, specific trade concerns (STCs) were raised against SPS measures maintained by Thailand at the WTO SPS Committee. Thailand reported progress and cooperated with trading partners to resolve these STCs, which were raised by:" Brazil and the European Union, Japan, Chinese Taipei, and the United States. The United States notes that there were two agricultural issues that were mentioned by the WTO Secretariat Report under this
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Question 11
Please explain how U.S. STCs on Thai SPS measures were resolved.
Answer
Refer to the Ministerial Regulations Prescribing Fees and Exemption of Fees under the Animal Epidemic Act, B.E. 2558 (2015), the differences of the fee of importing animal carcasses intended for human consumption or animal feed which is 7 baht/kg while the fee of importing animal carcass for any other purposes is 3 baht/kg. The fee of importing animal carcasses for any another purposes such as salted cattle skin or cow hides will transform into the budget for laboratory collection and sampling test of Anthrax disease which caused by Bacillus Anthracis. Anthrax is a serious infectious disease affects domestic and wild animals and zoonosis. Anthrax can form a spore and found naturally in soil and commonly around the world and usually transmitted from animals. Whereas the fee of importing animal carcasses intended for human consumption or animal feed will transform into the cost of laboratory test for food safety and quality control purposes such as food-borne infection, food poisoning to be ensured that the imported carcasses are safe for human consumption and suitable to produce the animal feed.
Page 86, Paragraph 3.157
The Secretariat's report states that all foods must meet, and are monitored for, specific hygiene, safety, labelling, marketing, and advertisement requirements.
Question 12
Please confirm that the criteria by which food inspectors detain import consignments are based on existing criteria and guidelines of international standard setting bodies, such as OIE, IPPC and Codex Alimentarius.
Answer
Thai FDA inspects the imported food in accordance with guidelines of international standard setting bodies, such as guidelines have established by Codex Committee on Food Import and Export Inspection and Certification System; CCFICS, Guidelines for Food Import Control Systems (CAC/GL 47-2003). The inspection will base on the risk of products, its origin and the history of conformance to the regulations under Food Act B.E. 2522 (1979). Whenever the competent officer found the imported food do not comply with the law, the consignments will be quarantined to protect consumers' health.
Page 87, Paragraph 3.162
The Secretariat's report states that imports of meat, chilled or frozen, must have a health certificate from the country of origin.
Questions 13, 14, 15
Please identify which regulatory body and/or bodies will assess these health certificates.
Please also provide further information on the criteria for recognizing exporting countries' health certificates (phytosanitary, veterinary, and/or sanitary certificates). For example, will Thailand restrict recognition of an exporting country's health certificates to those only provided by a federal and/or state-level regulatory authority?
Will Thailand also recognize third-party certification?
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Answer for Q13-Q15
Multiple agencies may have regulatory authority over the products. The DLD is one of the agency having authority over meat, chilled, or frozen.
Before importation is allowed, the DLD and the government agency of trading partner will make an agreement on health certificate. The DLD accepts health certificate only issued by government agencies at federal level and state-level.
Page 88, Paragraph 3.165
The Secretariat's report states that the Ministry of Agriculture and Cooperatives and the National Bureau of Agricultural Commodity and Food Standards issued voluntary standards to promote food safety in agriculture and aquaculture production.
Question 16
Please explain the basis of these voluntary standards and explain how they differ from Codex standards.
Answer
There are two categories of the voluntary standards, food and non-food. In case of food standards, the requirements are based on Codex standards which chiefly consider food safety.
Page 88, Paragraph 3.166
According to the Secretariat's report, "Applications for open field trials and commercial cultivation of genetically modified (GM) products must be submitted to the MOAC. The Department of Agriculture will then conduct a biosecurity risk evaluation to consider the risk management control measures. Based on the risk evaluation, the MOAC conducts a public hearing before approvals are granted by the Minister. The authorities indicated that, so far, three applications have been approved."
Question 17
Please provide more details about the three application approvals, specifically which products were approved (e.g., corn, soy, etc.), the developer/applicant of the products, the type of application approval (e.g., confined field trial, commercialization, etc.), and which authority granted the approval.
Answer
The Ministry of Agriculture and Cooperatives had granted permission for the field trials of GM plants in Thailand including Flavr Savr tomato in 1994, Bt cotton in 1995, Bt corn in 1997. However, due to pressure from NGOs, the decision of the Cabinet ministers on 3 April 2001 was to suspend all field-testing of transgenic plants in Thailand.
Question 18
Please clarify if there is a process to supplement application information in the case that the original application is found to contain incomplete or inaccurate information. Would there also be a mechanism for the Subject to consult with Thailand's regulators prior to submitting a dossier to ensure that the dossier contains all of the information Thailand will require for that application?
Answer
DOA has a process of requesting permission to import and conduct experiment with genetically modified crops under Plant Quarantine Act. The guide book has process of submitting and requesting a dossier from applicant.
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Question 19
Please clarify if additional laboratory testing would be required in instances when a scientific explanation could be sufficient to resolve a question.
Answer
Thailand has laboratory testing (accredited ISO/IEC17025) to test and certify import and export products. In the case of import prohibitions on seeds, the DOA will take samples and send to DOA laboratory for analysis.
Question 20
Are the procedures for receiving a written denial and appeals specified? Would Thailand also please confirm that a denial will be accompanied with an explanation for the rejection so that the developer can understand the basis for the decision?
Answer
In the case of denial, it must have an explanation for rejection.
Question 21
Please clarify if an applicant will have the opportunity to re-apply if it is able to address any deficiencies in the previous application.
Answer
The government authority will inform the applicant concerning the process.
Page 88, Paragraph 3.166
The Secretariat's report references the procedure for submitting genetically modified (GM) products; however, GM plants for cultivation appear to escape the Thailand 4.0 preference for efficient 'e-approval' of applications. The report indicates the Minister of Agriculture must approve any application and that only three have been approved.
Question 22
Please identify the three approvals and summarize the characteristics that ultimately led to their approvals.
Question 23
Furthermore, please disclose the total number of applications received to date.
Answer Q22-Q23
Regarding genetically engineered (GE) plants for cultivation, Thailand allows the importation of GE soybeans, and corn grain for processed foods, feed, and industrial use. Four government agencies are involved in the approval of agricultural biotechnology as follows:
Ministry of National Resources and Environment (MONRE)
- Ministry of Agriculture and Cooperative (MOAC), Department of Agriculture (DOA), Department of Fisheries (DOF), Department of Livestock Development (DLD), National Bureau of Agricultural Commodity and Food Standards (ACFS)
- Ministry of Public Health (MOPH), Food and Drug Administration (FDA)
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- Ministry of Higher Education, Science, Research and Innovation (MHESI), National Center for Genetic Engineering and Biotechnology (BIOTEC).
Applications for open field trials and commercial cultivation of genetically modified (GM) products must be submitted to the MOAC. GM plants are under the responsibility of the DOA and GM fishes are under the responsibility of the DOF which conduct by using the biosafety guideline and risk assessment to consider the risk management control measures. Based on the risk assessment, the DOA, MOAC conducts public hearings and approved the proposed control measures before submission to the cabinet ministers for granting approval by the Minister. Currently, Thailand has not approved any commercialization of GM crops for cultivation. The status of national regulation, MONRE has drafted the Biodiversity Act, which is ongoing to establish as national legislation for LMOs regulation.
In 2015, Thailand Issued the DOA notification and order relating to field trial as follows:
1) Notification of the Department of Agriculture on Regulatory Measures for Risk assessment of Genetically Modified Plants in Government Experimental Plot. B.E. 2558 (2015)
2) Order of the Department of Agriculture Regarding the formulation of rules and methods of field trial of genetically modified plants in the government experimental plot by public hearing.
3.3.5 Government procurement
3.3.5.2 Legislation, general policies and institutional arrangements
Page 92, Paragraph 3.186
The Secretariat Report states that Thailand "does not allow direct cross-border participation of foreign suppliers in its government procurement contracts."
Question 24
Does Thailand have any plans in progress to open competition to foreign suppliers?
Answer
The Public Procurement and Supplies Administration Act B.E. 2560 (2017) does not mention about direct cross-border participation of foreign suppliers. It depends on the requirement of procuring entities whether to procure products from overseas suppliers. Foreign suppliers that would like to participate in government procurement have to register in procurement system by submitting registration form in-person at the Comptroller General's Department. In term of international procurement, Regulation of Ministry of Finance on public procurement and supplies administration B.E. 2560 (2017), Clause 60 explained that:
1) The state agencies provide a draft of scope of work or specifications of supplies or construction plan to be procured.
2) Provision of procurement documents for the international price tender method and solicitation notifications shall be at the discretion of the head of State agency whether to be in the Thai or English language.
3) The publication of notifications or procurement documents shall be published for at least 30 consecutive business days.
Regarding to doing business in Thailand, foreign suppliers have to follow Foreign Business Act, B.E. 2542 (1999).
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3.3.6 Competition policy and price regulation
3.3.6.4 Price regulation and control
Page 101, Paragraph 3.216
The Secretariat's report states that "the Central Commission on Prices of Goods and Services (CCP) maintains two types of lists: one list contains goods and services under price monitoring (Table 3.26), and the other contains goods and services subject to price control (Table 3.27). Both lists are updated regularly."
Question 25
Please explain how agricultural producers benefit from the commodities subject to price controls where "purchasers cannot purchase at the prices not lower than the fixed prices" as noted under part 1 of Section 25, of the Price of Goods and Services Act, B.E. 2542 (1999).
Answer
Currently, agricultural products are listed as "Controlled Goods" but Thailand does not impose any price control measure on them pursuant to Part 1 of Section 25 of the Price of Goods and Services Act B.E. 2542 (1999).
The "controlled goods or services" list is intended to enable the CCP to determine appropriate regulatory measures efficiently and timely.
Page 103, Paragraphs 3.217-219 (includes Table 3.27)
Thailand requires private hospitals to notify price adjustments for medicines to the Department of Internal Trade every 15 days.
Question 26
What is the process and criteria to add medicines to the price control list? Will industry and foreign government stakeholders have an opportunity to weigh in on such a process?
Answer
Private hospitals in Thailand are not required to notify price adjustments for medicines every 15 days. Current measures being imposed are to require private hospitals, manufacturers, importers, and distributors to notify prices of medicines to the Department of Internal Trade (DIT) in order to publish the selling prices of each private hospital through the DIT's website. Private hospitals are also required to show a QR code at any clearly visible areas in order for patients to easily access the pricing information. Moreover, they are required to notify adjustments of the prices of medicines, medical supplies for medical treatments and medical services to DIT 15 days in advance of the adjustment.
The reason why medicine is listed as a "Controlled Good" is that there had been a number of complaints on unfairly high prices of medicines and medical services. Therefore, it is necessary to prescribe medicines, medical supplies for medical treatments and medical services to be listed as "controlled goods and services." The measures requiring private hospitals to clearly report prices of medicines, medical supplies for medical treatments and medical services with transparency allow consumers to know prices and make informed decisions in purchasing goods and services.
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3.3.7 Intellectual property rights (IPRs)
3.3.7.5 Patents
Page 108, Paragraph 3.243
Question 27
What is the process and criteria to grant a compulsory license for a patent?
Question 28
When the license expires, how is the decision made to extend it, and who makes that decision?
Question 29
What is the process for notifying and seeking authorization from the patent holder prior to issuing the license?
Question 30
What are the criteria for determining the appropriate remuneration for the patent holder, and who makes that determination?
Answer for Q27-Q30
In order to carry out any service for public consumption or which is of vital importance to the defense of the country or for the preservation or realization of natural resources or the environment or to prevent or relieve a severe shortage of food, drugs or other consumption items or for any other public service, any ministry, bureau or department of the government may, by themselves or through others, exercise any right under Section 36 (patentee's rights) by paying a royalty to the patentee or his exclusive licensee and shall notify the patentee in writing without delay. In the said circumstances, the ministry or bureau or department shall submit its offer setting forth the amount of remuneration and conditions for the exploitation to the Director-General of the Department of Intellectual Property. The royalty rate shall be as agreed upon by the ministry or bureau or department and the patentee or his licensee. (Article 51 of the Patent Act)
During a state of war or emergency, the Prime Minister, with the approval of the Cabinet, shall have the power to issue an order to exercise any right under any patent necessary for the defense and security of the country by paying a fair remuneration to the patentee and shall notify the patentee in writing without delay. The patentee may appeal the order or the amount of remuneration to the court within sixty days from the receipt of the order. (Section 52 of the Patent Act)
It shall be noted that the scope and duration of the compulsory license shall not be more than necessary under the said circumstances and aimed predominantly for the supply of the domestic market. The remuneration fixed shall also be adequate for the circumstances of the case. (Section 50 of the Patent Act).
3.3.7.6 Trademarks
Page 108, Paragraph 3.244
The DIP introduced trademark forms designed for the electronic filing process and increased the number of trademark examiners (from 20 in 2014 to 36 in 2018) and improved their training to streamline the examination process. Despite these improvements, in 2019, the average time taken to register a trademark was around 16-18 months (without opposition or appeal).
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Question 31
How does the DIP intend to improve pendency? For example, does the DIP intend to improve its technological capacity or hire additional trademark examiners?
Answer
The DIP has adopted the e-Filing system since 2018 and is in the process of further improving its IT system for the management of trademark registration. In addition, the DIP has recently set up a Working Group to manage the quality of trademark examination. The Working Group is currently in the process of revising the "Guidelines on the Trademark Examination" which is expected to further enhance the efficiency of the registration process.
Question 32
It is unclear, based on the Secretariat Report and the Thai Government Report, how many trademark examiners currently work for the DIP. How many trademark examiners currently work for the DIP and are actively reviewing trademark applications?
Answer
At present, there are 34 trademark examiners actively reviewing trademark applications.
4.5.2 Communications
4.5.2.1 Telecommunications
Page 145, Paragraph 4.138
As detailed in the paragraph, Thai law allows foreign equity up to 49% in Type I and II licenses, and imposes no equity limitation on Type I services. This constitutes an improvement on the 20% foreign equity cap listed in Thailand's provisional 1997 WTO commitments. However, Thailand has not revised its WTO General Agreement on Trade in Services (GATS) schedule, as it committed to do, to reflect these higher foreign-equity limits and its adoption of pro-competitive regulatory measures (e.g., mandatory interconnection).
Question 33
When will Thailand introduce into its GATS schedules these improvements, as it committed to do?
Answer
Thailand is in the process of internal consultation to revise its telecommunications commitments of Uruguay round to be consistent with Telecommunications Act". Currently, Thailand is in a public hearing stage, and the results of public hearing will be presented to the cabinet and parliament for approval. The further step after the approval, Thailand will proceed to the notification process. Thailand expects to submit the revised schedule of commitment to WTO by 2021.
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4 TRADE POLICIES BY SECTOR
4.1 Agriculture
4.1.3 Agricultural policies
4.1.3.1 Legal, institutional, and policy framework
Page 115, Paragraph 4.10
Regarding agricultural policies, the Secretariat Report suggests that Ministry of Agriculture and Cooperatives (MOAC) promotes alternative and integrated agriculture, as well as "replacing chemicals by organic substances to promote food safety."
Question 34
Please explain how Thailand plans to provide alternative crop protection tools, and/or provide risk assessments relating to maximum residue limits (MRLs) and food safety.
Answer
The Department of Agriculture, Thailand will provide alternative crop protection tools through the harmonization of the use of crop protection products, Integrated Pest Management (IPM), and Good Agricultural Practice (GAP) for the higher quality and yields parallel with food safety standards.
Question 35
The same paragraph continues to suggest "implementing agricultural policies…reducing production costs…"
Please explain how removing access to crop protection tools, use of which is supported by international standards, and cutting costs is consistent with implementing agricultural policies that reduce production costs.
Answer
The Thai government encourages farmers to adopt the Integrated Pest Management (IPM), which is an effective and environmental sensitive approach to control and eradicate crop pest and diseases. Moreover, there are also is the Integrated Farming System (IFS) programs which is an approach that integrates natural resource management and livelihood diversification to stabilize farmer's income, aiming at promoting farmers to reduce the use of the chemicals and encourage the use of locally available alternative crop protection tools, such as biocontrol agents and bioextracts in order to reduce production cost.
4.2.3.3 Domestic support
Page 125, Paragraphs 4.51-4.52, and Table 3.19 on Page 81
Question 36
Concerning support for fishermen and vessel owners affected by measures to combat IUU fishing: are these payments a one-time outlay, or a recurring set of payments for a particular stretch of time, or as part of a permanent program?
Answer
The compensation scheme has conditions in payment as follows:
The first installment of compensation will be paid 30% of appraised value when the owner of a vessel executed a vessel demolition contract with the Provincial Fisheries Office and agreed by the Working
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Group on vessel buy-back and compensation scheme. The last installment of compensation will be paid 70% of appraised value after the owner of a vessel had finished vessel demolition's process and agreed by the Working Group. Breach of contract within a specified time will fail to receive the last installment and shall have to return 30% of first installment to the Department of Fisheries.
Question 37
Concerning the payments to artisanal fishing communities, what are the eligibility criteria for individual fishers' receipt of payments?
Answer
The payment is transferred to the account of local fishing community organizations registered with the Department of Fisheries only, not into the personal bank account.
4.4 Manufacturing
Pages 134-135, Paragraphs 4.85-89
Action Plan for Industrial Development.
Questions 38 and 39
Under the Action Plan for Industrial Development, how will information be gathered about targeted subsectors? What process will be used to develop Action Plans?
Will industry and foreign government stakeholders have opportunities to raise issues, comment on proposed plans, and otherwise participate in the development process?
Answer Q38, Q39
The Ministry of Industry has formulated the "20-year strategy for the development of the Thai Industry 4.0" as a framework for the Thai industry development to drive the country's economy for stable and sustainable growth. These strategies are in line with the 20-year National Strategy and the concept of Thailand 4.0 model by transforming the traditional labour-intensive to a knowledge-based and high value-added innovation economy. These 20-year strategy was approved by the Strategy Committee called SPRING Board which consists of the Minister of Industry as well as senior executives and industry experts from government and private sectors. Afterwards, the Ministry of Industry has translated this strategy into the Action Plan on Industrial Development (2018 – 2040) under the vision "Towards an industry that is empowered by intelligence and connected to the world economy" in order to support and fulfill the 20-year National Strategy (2018 – 2037) and the 12th National Economic and Social Development Plan (2017 – 2021).
QUESTIONS REGARDING THE REPORT BY THE GOVERNMENT - WT/TPR/G/400
3 ECONOMIC AND TRADE POLICY DEVELOPMENT, 2015-19
3.1 National Policies towards Structural Reform
Page 6, Paragraph 3.6
S-Curve & New S-Curve Industries
Question 40
Which specific subsectors are targeted under biotechnology and "medical and comprehensive healthcare"?
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Answer
The scope of biotechnology and medical and comprehensive healthcare should be broad for the new development in the future. Interested investors can submit application with details to Thailand Board of Investment for consideration.
Question 41
How will decisions be made on which subsectors will be targeted under these different iterations of industrial development?
Answer
The scope of biotechnology and medical and comprehensive healthcare should be broad for the new development in the future. Investors can submit application with details to Thailand Board of Investment for consideration.
Question 42
What incentives will be made available to promote biotechnology and "medical and comprehensive healthcare", and do multinational companies have an opportunity to take advantage of these incentives? If so, how can multinational companies apply for them?
Answer
Incentives include both tax and non-tax incentives. Thailand Board of Investment's investment promotion scheme is on non-discriminatory basis. MNCs can apply for BOI promotion by contacting BOI. For more detail, please visit our website at www.boi.go.th.
Section 3.1.2, Trade and Business Facilitation
Pages 8-9, Paragraph 3.21
Regulatory Guillotine
Question 43
Can industry and/or foreign government stakeholders make recommendations on regulations that should be reviewed by the Thai government under the "regulatory guillotine"?
Answer
Production costs for the farmers in Thailand mostly subsidized by the government for the overall food chain such as GAP-registration, Agricultural Produce Insurance.
Section 3.1.3, Bio-Circular-Green (BCG) Economy
Page 9, Paragraphs 3.22-24
Medical and Healthcare as part of BCG Economy Initiative
Question 44
Under the Bio-Circular-Green (BCG) initiative, how will the Thai government make decisions on which areas of the targeted industries will receive government support (both subsidies and research & development)?
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Answer
The Ministry of Finance will support various measures according to the BCG economy development strategies led by the Ministry of Higher Education, Science, Research and Innovation. The government is ready to listen to recommendation from all stakeholders on initiative that will drive forward BCG in Thailand.
Question 45
Will industry and foreign government stakeholders have opportunities to make recommendations on areas which should receive support under this program?
Answer
The Ministry of Finance will support various measures according to the BCG economy development strategies led by the Ministry of Higher Education, Science, Research and Innovation. The government is ready to listen to recommendation from all stakeholders on initiative that will drive forward BCG in Thailand.
Section 3.2.4, Industry
Pages 14-15, Paragraphs 3.40-42
Action Plan on Industrial Development (APID)
Question 46
Under the Action Plan for Industrial Development, how will information be gathered about targeted subsectors? What process will be used to develop Action Plans?
Question 47
Will industry and foreign government stakeholders have opportunities to raise issues, comment on proposed plans, and otherwise participate in the development process?
Answer Q46, Q47
The Ministry of Industry has formulated the "20-year strategy for the development of the Thai Industry 4.0" as a framework for the Thai industry development to drive the country's economy for stable and sustainable growth. These strategies are in line with the 20-year National Strategy and the concept of Thailand 4.0 model by transforming the traditional labor-intensive to a knowledge-based and high value-added innovation economy. These 20-year strategy was approved by the Strategy Committee called SPRING Board which consists of the Minister of Industry as well as senior executives and industry experts from government and private sectors. Afterwards, the Ministry of Industry has translated this strategy into the Action Plan on Industrial Development (2018 – 2040) under the vision "Towards an industry that is empowered by intelligence and connected to the world economy" in order to support and fulfill the 20-year National Strategy (2018 - 2037) and the 12th National Economic and Social Development Plan (2017 – 2021).
3.2.6 Intellectual Property
Page 20, Paragraph 3.74
According to the Government Report, Thailand is in the process of amending the Patent Act B.E. 2522 (1979), which covers both the patent section and the industrial design section. For the patent section, the amendment focuses on streamlining the patent registration procedures, complying with the Protocol Amending the TRIPS Agreement and addressing the formality of applications for patents related to genetic resources and traditional knowledge.
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Question 48
When is the amendment to the Patent Act expected to become effective, and what steps have to be taken to ratify the amendment?
Answer
The Department of Intellectual Property made the draft amendment of the Patent Act available for public comments during 30 September - 31 October 2020. After this, the Department of Intellectual Property plans to submit the draft amendment to the Cabinet by the end of 2020.
Question 49
New patent examination guidelines have also been issued; please explain the effect of these guidelines on the patentability determination for patent applications, in particular with respect to inventions in the pharmaceutical field.
Answer
The guidelines have been used by patent examiners to ensure the standards of examination including the patentability that have to be in line with the Patent Act and the relevant rules and regulations. The guidelines have helped patent examiners in all filed of inventions including pharmaceutical by providing clear and consistent explanations and examples with which they can consult.
Question 50
Please explain how the compulsory licensing provisions in the amendment to the Patent Act are consistent with the TRIPS Agreement, including, in particular, Article 31 and 31bis.
Answer
The amendment to the compulsory licensing provisions adds the provision regarding export of pharmaceutical products to comply with the Protocol Amending the TRIPS Agreement.
Question 51
Please describe the new disclosure requirement for genetic resources and traditional knowledge in the amended Patent Act. Will enforcement of this disclosure requirement affect patentability determinations? What are the consequences if an applicant fails to comply with the disclosure requirement?
Answer
The disclosure requirement for genetic resources and traditional knowledge in the draft amendment of the Patent Act does not affect patentability. Failing to comply with the disclosure requirement may result in a possible liability.
Page 20, Paragraph 3.78
The DIP recruited 20 trademark examiners during 2016-18 to facilitate the registration process.
Question 52
Has DIP hired additional trademark examiners between 2018-2020? If so, how many?
Question 53
How has the hiring of additional trademark examiners affected the trademark examination backlog in Thailand?
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Answer Q52-Q53
Trademark examiners have not been added during 2018-2020. The situation of trademark backlog has been slightly better over the past years. It is noted that despite the increase of trademark examiners during 2016-2018, a number of trademark applications particularly via the Madrid system have also increased since the Madrid Protocol entered into force in Thailand on 7 November 2017.
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