Thailand is significantly bolstering its efforts to combat illicit trade and transshipment activities, implementing stringent measures in response to growing concerns from the United States. The Department of Foreign Trade (DFT) has confirmed that Thai authorities are prepared to take legal action against any violations discovered, particularly those involving false claims of origin or circumvention tactics.
Enhanced Enforcement and Cooperation
Mr. Araj Trakulwaranont, Director-General of the DFT, acknowledged the concerns raised by the U.S. regarding transshipment and false origin claims. He stated that Thailand is fully aware of the risks associated with these practices and is committed to addressing them. “While we enhance inspections and cooperate with the U.S., authorities are ready to take legal action if evidence of illegal activities or false origin claims is found,” Mr. Trakulwaranont explained.
To this end, Thai authorities have intensified on-site inspections of business establishments. These efforts are conducted in close collaboration with the Department of Customs and the Ministry of Industry. The inspections aim to trace the origin of goods and identify any operators who have violated the law. This proactive approach is crucial in ensuring the integrity of supply chains and preventing illicit trade from undermining legitimate businesses.
Technological Advancements in Trade Monitoring
The DFT is also expanding its watchlist system to cover a broader range of products. Effective from June 1, 2026, the system will encompass 94 Harmonized System (HS) codes, covering 49 items, up from the previous 191 HS codes covering 67 items. This expansion is designed to provide more comprehensive monitoring of goods entering and leaving the country.
Furthermore, the department plans to develop the REVOLVER Plus system, which utilizes artificial intelligence to assess and verify the risks associated with the origin of goods. This technological advancement is expected to significantly improve the efficiency and accuracy of origin verification processes. Businesses operating within Thailand have already undergone training on local content and origin rules, with over 2,000 business operators now equipped to comply with these regulations.
Diplomatic Engagement and Future Outlook
Representatives from the DFT and the Department of Customs are scheduled to meet with representatives from the Office of the U.S. Trade Representative from August 23rd to 25th. This meeting aims to communicate Thailand’s commitment to addressing transshipment and preventing illicit trade. The dialogue is expected to foster greater understanding and cooperation between the two nations on trade compliance issues.
Mr. Trakulwaranont emphasized that Thailand is ready to work constructively with the U.S., basing its actions on verifiable evidence, facts, and data. The goal is to take targeted action against wrongdoers while avoiding unnecessary burdens on legitimate businesses. “Such cases must be clearly distinguished from genuine economic activities, which may result in increased production capacity, production-based relocation, new investment, or changes in supply chains,” he noted.
He further elaborated that while increased trade may sometimes signal a need for further investigation, it does not automatically indicate trade circumvention. Thailand is committed to providing reliable data and information exchange with the U.S. to effectively resolve these issues and identify risks. The country also actively promotes local content to support its role in a reliable and transparent global supply chain.
Conclusion
Thailand’s stepped-up crackdown on illicit trade reflects a strong commitment to international cooperation and the integrity of global commerce. By enhancing enforcement, leveraging technology, and engaging in open dialogue with international partners like the U.S., Thailand aims to build a more secure and transparent trade environment, fostering legitimate economic activities and deterring illegal practices.
