Thai Cabinet Approved to Reduce Import Tariff on Automobile Parts

On January 6, 2011, a report from the Thailand World Daily said that the Thai Cabinet Council approved to exempt and reduce import tariff on automobile parts, which can help the development of automobile enterprises. The Thai Ministry of Finance submitted two draft bills to the Thai Cabinet, which had been passed through the consideration by the Thai Cabinet and would take into effect soon.

The first draft bill suggested by the Thai Ministry of Finance indicated the reduction of import tariff on natural gas tank, changing the former 17% to zero and expiry date till December 31, 2011. The tariff as 10% will be imposed from January 1, 2012; the reduction of tariff on control equipment of natural gas was from 35% to zero, and the tariff of 10% will be levied from January 1, 2012. In addition, tariff reduction of 12 items of products, like brake imports, manual parts, etc will be reduced from 30% to 10%; the tariff on crane will be reduced from 40% to 10%.

The content of the second draft bill showed that the exempted import tariff on large carrier vehicle, freight car, truck and passenger car with its capacity over 10 persons will last for 2 years, including their parts. All these mentioned above refer to those cannot be produced in Thailand, excluding the freight car with its capacity of one ton.

The producible parts in Thailand can't enjoy the tariff preference, like battery, vent-pipe, coating, tire, etc.