February 24, 2012

A draft agreement on tax quotas to be granted by the EU to Thai processed poultry has been approved by the Thai Cabinet to take effect on July 1, 2012 after an approval by parliament.

Deputy Secretary-General to the Prime Minister and acting Government Spokesperson, Thitima Chaisang, said on Wednesday (Feb 22) that under the agreement, the EU will give a quota of 14,000 tonnes to Thai processed chicken with more than 25-27% of muscle meat to be imported into the EU and another quota of 13,500 tonnes to processed duck with more than 57% of muscle meat.

As for products with low sale records, Thailand receives a quota of 10-2,100 tonnes with a 10.9% in-quota tax rate. As for processed poultry products outside the quotas, they are subject to a tax rate of EUR2,756 (US$3,685) per tonne. These products include almost all kinds of processed poultry except processed duck with muscle meat of over 57%. They are subject to a tax rate of EUR630 (US$842) per tonne.

All processed poultry exports eligible for the quotas must have the Ordinary Certificate of Origin issued by a government agency.