November 23, 2005

 

Thailand keeps soymeal import tax for WTO members at four percent

 

 

The Thai Cabinet has agreed to keep the import duty on soymeal from World Trade Organization member economies at 4 percent in 2006, unchanged from 2005, according to a statement posted on the Government Spokesman Bureau's website Wednesday.

 

There is no limit on the quantity that can be imported, but only authorised importers, such as the Thai Feed Mill Association and the Thai Broiler Processing Exporters Association, can enjoy the preferential 4 percent duty.

 

In return, the government required these soymeal importers to buy locally produced soymeal at government-set prices, which would be no lower than THB9.50/kilogramme, according to the statement.

 

The duty on soymeal imports from non-WTO economies is 119 percent, but imports from Australia and New Zealand would be exempted from duties because of Free Trade Agreements between Thailand and these countries, the statement said.

 

Thailand had to import soymeal because its soymeal production could not meet demand. In 2004, Thailand imported 1.26 million tonnes of soymeal, according to data from the Customs Department.

 

Corn, fishmeal import policies in 2006
 

The Cabinet has also approved import policies for corn and fishmeal, according to the statement.

 

For 2006, the government has maintained authorised corn imports at 54,700 tonnes and kept the tax unchanged at 20 percent.

 

These corn imports, which must take place between Mar 1 and Jun 30, 2006, would fall under the WTO's minimum access volume, or MAV, allowance. Only the state-owned Public Warehouse Organization, or PWO, is allowed import of MAV corn.

 

Imports above the MAV, which are open to general importers, face a 73 percent duty and a THB180/tonne surcharge.

However, corn imports from Cambodia, Laos and Myanmar would not be subjected to time and quantity constraints. These corn cargoes would also be exempted from import duties, in line with the Irrawaddy-Chao Phraya-Mekong Economic Cooperation Strategy between Thailand and its three neighbours.

 

Because of an existing bilateral Free Trade Agreement, corn imports from New Zealand would not face any time or quantity constraints, and would be exempted from duty charges as well, the statement said.

 

However, the 5,743.50 tonnes of corn to be imported from Australia in 2006 would be subjected to a duty of 18.67 percent, as agreed under the Free Trade Agreement between Thailand and Australia. Only PWO could enjoy this preferential rate and imports are restricted to between Mar 1 and Jun 30, 2006, the statement said.

 

Corn imports from Australia above this quota could take place anytime, but would face a higher 65.70 percent import duty, the statement said.

 

The Cabinet also approved unlimited imports of fishmeal with a minimum protein content of 60 percent. These imports would be subjected to an import duty of 10 percent, plus a special surcharge amounting to half that duty, bringing the total tariff to 15 percent.

 

However, fishmeal imports from the Asean Free Trade Area would face a lower duty of 5 percent, while imports from Australia and New Zealand would face a 12 percent duty under the Free Trade Agreements with Thailand, the statement said.