Key Takeaways
- Sections 13-14: Provide the legal framework for preferential tariff claims based on proven country of origin.
- Origin Criteria Standards: Divided into Wholly Obtained (WO) and products undergoing Substantial Transformation (CTC/RVC).
- Direct Consignment Rule: Requires cargo to ship directly from the exporting partner country; transshipment through a third country requires customs custody verification.
- Retroactive Duty Risks: Invalid or falsified Certificates of Origin result in cancellation of privileges and retroactive duty claims.
Sections 13 and 14 and Tariff Reduction Rights
Sections 13 and 14 of the Customs Act B.E. 2560 establish guidelines for declaring imports under preferential tariff rates negotiated through bilateral or multilateral trade treaties (e.g., ASEAN-China Form E, ASEAN Form D). Importers must present a valid Certificate of Origin at the time of entry. If customs officers suspect the origin status or document validity, they may suspend the rate and demand full duty deposits under standard rates while launching verification inquiries with the exporting state's trade authority.
Understanding Origin Criteria
To qualify, goods must comply with one of two core origin rules: 1. Wholly Obtained (WO): Goods entirely grown, harvested, or produced in the exporting country without foreign inputs (e.g. agricultural products, minerals). 2. Substantial Transformation (ST): Goods containing imported components that undergo significant processing, determined by a Change in Tariff Classification (CTC) or meeting a minimum Regional Value Content (RVC) threshold.
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Contact Our Experts NowThe Direct Consignment Rule and Third-Country Transshipments
A vital operational condition is the Direct Consignment rule. Goods must be transported directly from the exporting partner country to Thailand. If transshipped through a non-treaty country (e.g., shipping from China via Hong Kong to Thailand), the goods must remain under customs supervision in that transit port, and importers must present a Through Bill of Lading or a Non-Manipulation Certificate issued by transit customs.
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.
Claiming preferential tariff treatment under Free Trade Agreements (FTAs) is governed by Rules of Origin implemented under Sections 13 and 14 of the Customs Act B.E. 2560. Importers must prove the goods satisfy specific origin criteria and submit a valid, unaltered Certificate of Origin (C/O).
Frequently Asked Questions
Q: Can I claim a tariff refund retroactively if the Certificate of Origin was not ready at import?
A: Yes, provided that a declaration of intent to preserve preferential rights is made on the import entry, and the refund claim is filed within 1-2 years as specified by regulations.
Q: Will minor spelling mistakes on the C/O lead to rejection?
A: Under most FTAs, minor typographical or administrative discrepancies that do not cause doubt regarding the origin of goods will not invalidate the certificate.
