Local transport operators have voiced concerns over a proposal of the Customs Department for cross-border shipments, saying their competitiveness will be hurt if the new regulation takes effect.
Tanit: Guarantee a burden on SMEs
The department proposed requiring transport operators to pay a customs deposit guarantee equal to their customs tax burden in Thailand and the countries of transit.
But the Federation of Thai Industries (FTI) opposes the proposal and is calling for a revision.
"If you have a small amount to ship, the impact won't be that big, but if you have a lot to transport, then this would be a big tax burden," said FTI vice-chairman Tanit Sorat.
The guarantee could cost as much as 3-4 million baht per container, noted Mr Tanit, who is also chairman of the Greater Mekong Subregion Business Forum.
While customs duties on most products under the Asean framework have been eliminated completely, some are still applicable.
Mr Tanit said most transport operators in Thailand are small and medium-sized enterprises that cannot afford the guarantee deposit.
The proposal stipulates companies ordering the shipments must pay the guarantee, but they usually do not have a presence in the country, meaning transport operators get stuck footing the deposit, said Mr Tanit.
He said the problem will be compounded once the Asean Economic Community starts in 2015, intensifying competition with foreign operators.
"If local operators cannot provide the deposit, then customers may turn to larger foreign companies," he said, noting that the proposal is not in line with the government's policy of encouraging Thai companies to invest abroad.
"Local companies that have set up plants abroad will have to use cross-border transport for their shipments, and it would be futile for a regulation to hold them back."
The value of cross-border trade is expected to reach 930-950 billion baht this year, an increase of between 5.6% and 6% from last year.
Thailand's cross-border trade in the first seven months of this year totalled 540 billion baht, up by 3% year-on-year.
Malaysia accounted for the largest chunk at 57.8% or 312 billion baht.
Myanmar, Laos and Cambodia accounted for 17.9%, 15.8% and 8.5%, respectively, during that period.
Last year's cross-border trade with neighbouring countries valued at just under 900 billion baht, up by 15.6% from 2010.
Exports accounted for most of that total at 587 billion baht.