Thai Customs Re-launched Voluntary Self Disclosure Program in May 2010

The Thai Customs Department has recently authorized the Post-Clearance Audit Bureau to re-launch a voluntary disclosure program from 15 May 2010 to 30 September 2010, where the importers, exporters and related parties can audit themselves and voluntarily disclose to the Customs on any potential customs risks or customs offences found from their self-audit.

Those who voluntarily reports to the Customs Department on the potential customs risks and/or customs offences that result in shortage of import duties and taxes, e.g. false declaration of tariff code, undervalue declaration, misuse of customs privilege and BOI privilege,...etc., shall be eligible for a waiver of import duty penalty and VAT penalty and shall only be subjected to the payment of import duty shortage, VAT shortage and surcharge 1.5% per month. Such waiver is based on 2 conditions as follows:

1) The customs risks and/or customs offences are not caused or made intentionally, and

2) The right to participate in the Customs Voluntary Disclosure Program is just 1 time per a company (those who previously utilized the right shall not be able to join this program).

Importation of restricted goods without import licenses and hand-carrying or smuggling goods into Thailand without duly processing import customs formality will be deemed as intentional customs offences and will not be eligible for a waiver of penalties under the Customs Voluntary Disclosure Scheme.

Related parties therefore are advised to take this golden opportunity by making self-audit and declaring any potential customs risks found to the Customs Department during 15 May 2010 to 30 September 2010so as to minimize duty exposures and comply with customs regulations.