Key Takeaways
- Section 242: Smuggling (goods brought outside customs stations or bypassing declaration) risks a fine of 4 times the duty-paid value or up to 10 years in prison.
- Section 243: Duty Evasion (declaring undervalued prices or wrong HS codes) carries fines ranging from 0.5 to 4 times the short-paid duty.
- Section 244: Evading restrictions (importing restricted goods without licenses) carries imprisonment up to 10 years or a fine up to 500,000 THB.
- Section 252 Compound Power: Empowers the Director-General of Customs to settle customs cases out of court via administrative fines.
Section 242: The Offense of Customs Smuggling
Section 242 states that any person who imports into or exports out of the Kingdom any duty-unpaid goods, prohibited or restricted goods, or cargo that has not undergone proper customs clearance, or evades customs duties, shall be liable to imprisonment for a term not exceeding 10 years or a fine of 4 times the duty-paid value of the goods, or both. This includes concealing items in transport compartments or landing cargo at unauthorized natural borders.
Sections 243 and 244: Duty Evasion and Restrictions Avoidance
Most commercial trade disputes arise under Sections 243 and 244: - Section 243: Defines Duty Evasion. This commonly involves undervaluation of purchase prices on fake invoices, or misstating tariff codes to access zero-rate imports. Fines are proportionate to the short-paid tax. - Section 244: Defines Evasion of Restrictions, which focuses on importing goods subject to regulatory bans or licensing (e.g. food, cosmetics, medical equipment) without securing valid permits.
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Contact Our Experts NowSection 252 and the Out-of-Court Settlement (Compounding Case) Mechanism
To expedite trade resolution and avoid clogging the judiciary with technical violations, Section 252 grants the Director-General of Customs or the Compounding Committee the authority to settle cases administratively. If the offender admits the violation, pays the short-paid duty, and agrees to the statutory settlement fine, the criminal charge is legally extinguished without trial.
Official Reference Agencies and Regulations
- Thai Customs Department: Statutory sections on importer liabilities and criminal penalties under the Customs Act B.E. 2560.
- Ministry of Finance & Appeals Committee: Ministerial decrees on customs valuation and formal tax appeal tribunal procedures.
Statutory infractions under Sections 242, 243, and 244 of the Customs Act B.E. 2560 carry severe monetary fines and imprisonment. Section 242 mandates fines up to 4 times the duty-paid value of the goods or imprisonment up to 10 years for smuggling. Sections 243 and 244 govern duty evasion and evading import/export controls, respectively.
Frequently Asked Questions
Q: Can undervaluation of imports lead to imprisonment?
A: Yes, legally under Section 243, jail time is a statutory option. However, for first-time technical offenses, settling under Section 252 compounds the case, resolving it at the administrative level.
Q: Who has the authority to confiscate offending goods?
A: The court holds the primary power to order forfeiture. Alternatively, the Director-General of Customs can confiscate cargo as part of an out-of-court compounding settlement.
