Finance Minister Arkhom Termpittayapaisith has urged the Customs Department to expedite the customs clearance procedures for exports and imports, particularly those pertaining to the automotive industry.
Mr Arkhom said he instructed the department to improve customs facilitation in order to simplify and expedite import and export processes following a meeting he held with a group of Japanese investors in the middle of June.
The Japanese are one of the largest investor groups in Thailand, particularly in the automotive sector, using Thailand as a production base and raw material supply chain.
A shortage of some electronic components, notably chips, affected the supply chain in the automotive industry worldwide. As a result, buyers often have to deal with a long waiting period.
However, if the customs process was expedited, it would promote a more stable supply chain, he said.
Mr Arkhom said Japan wants Thailand to accelerate the process for importing auto parts to ensure timely production and export orders, as well as for domestic sales.
"The automotive market in Thailand is quite high-end compared with other countries, as buyers tend to purchase top-end variants or premium cars that require more parts than regular cars," he said.
Japan has sought cooperation from Thailand to harmonise product codes for both imports and exports as traded products use an international harmonised system, said Mr Arkhom.
This system is used by customs authorities around the world to identify products when assessing duties and taxes, utilising a 10-digit classification code.
In some cases, different codes used by importers and customs authorities resulted in different import tariffs, as well as delays in customs clearance procedures, he said.
Mr Arkhom said a platform should be developed to share data and achieve a common understanding.
"Japan remains Thailand's top foreign investor and helps to expedite our exports to the global market," he said.
"Supply chain problems occur globally, but the Customs Department can play a crucial role in facilitating the movement of raw materials in the supply chain."
Regarding rumours about the relocation of Isuzu's production base from Thailand to Indonesia, Mr Arkhom said Japan confirmed the company has no plans to relocate to Indonesia.
According to a report released by Krungthai Compass, a research unit under Krungthai Bank, last year Thailand ranked No.1 globally in the export of auto parts, spares and accessories, with the value representing 12.3% of GDP.
The research house predicts the country's auto parts market will be worth 1.51 trillion baht this year, up 1.3% year-on-year, while it is set to expand by 2.6% in 2024 as three factors support these gains.
The factors are growth of the automotive industry, both domestically and internationally; an increase in the number of used cars and motorcycles older than five years; and a promising export market.