Thailand’s Updated Customs Act 2017: A More Rational Penalty System
Jan 20, 2022
Thailand has made significant strides to modernize its customs regulations with the introduction of the Customs Act BE 2560 (2017), effective from Nov. 13, 2017. This legislation replaces the outdated Customs Act BE 2469 (1926), addressing many of its limitations.
Key Features of the New Act:
Enhanced Classification of Offences: The previous act, under Section 27, lumped all customs violations together. The 2017 Act provides a nuanced approach, dividing penalties across three separate sections (242, 243, and 244) to account for varying degrees of infractions.
Revised Requirements of Intent: The former act presumed strict liability for all Section 27 offences, even unintentional errors. The new Act, particularly in Section 252, lessens the presumption of intent, requiring the prosecution to prove “willful intent” or “negligence”, promoting the principle of presumed innocence.
Flexible Penalty Calculations: Before, Section 27 mandated penalties at four times the total cost of goods and customs duty and/or up to 10 years of imprisonment. The revised Act, while retaining the potential for imprisonment, introduces more proportional fines based on the severity of the offence:
Section 243 focuses on duty evasion. Fines are determined by the actual duty evaded, multiplied by a factor ranging between one-half and four times.
Section 242 deals with illicit import/export of items bypassing customs. Offenders face penalties of four times the item's total cost (including duty) and/or a maximum of 10 years in jail. The offending items are also subject to confiscation.
Section 244 addresses customs evasion in terms of import restrictions or prohibitions. Conviction can result in a fine of 500,000 baht, and/or up to a decade in prison, with potential forfeiture of the involved items.
Retroactive Application: A noteworthy aspect is the Act's retroactive applicability to ongoing cases from its effective date. This might bring relief to entities or individuals contending with existing customs cases.
Implications and Outlook:
The 2017 Customs Act brings greater clarity and fairness to the customs process. The revamped penalty structure, reduced strict liability, and tiered penalties for different infractions are particularly beneficial. While the private and public sectors stand to gain from this more rational system, the expected forthcoming regulations will provide further insights.
Although the new Act is a significant step forward, there's room for improvement. Businesses should remain vigilant and attentive to future adjustments and refinements.