Thai ministry tackles substandard imports threatening SMEs

The Commerce Ministry has partnered with ten government agencies to implement measures aimed at reducing the influx of low-priced, substandard imported goods, which pose safety risks to consumers purchasing from both online and offline vendors.

The Commerce Permanent Secretary, Vuttikrai Leewiraphan, highlighted that the rise of Chinese e-commerce platforms using a direct-to-customer model allows buyers direct access to inexpensive products manufactured in Chinese factories.

“This development could negatively impact small and medium-sized enterprises (SMEs) that act as intermediaries importing products from China. The model is set to disrupt the entire supply chain of both large operators and SMEs.”

Relevant agencies have been tasked with reviewing existing regulations and laws to determine if they can control or limit the operations of such e-commerce platforms, aiming to enhance consumer safety and ensure fair trade.

Participating agencies include the Finance Ministry, Customs Department, Revenue Department, Industry Ministry, Digital Economy and Society Ministry, Food and Drug Administration (FDA), Office of the Board of Investment, Office of the Consumer Protection Board, Department of Special Investigation, and the Electronic Transactions Development Agency (ETDA).

Both offline and online goods must meet certification standards from Thailand’s FDA and the Thai Industrial Standards Institute. Random inspections of imported products sold in Thailand revealed that some sellers were not Thai nationals and lacked visas, work permits, or business licences.

The Commerce Ministry will collaborate with relevant agencies to investigate businesses suspected of violating the Foreign Business Act, with offenders to be prosecuted under the respective laws of each agency.

The ministry directed the Customs Department to provide a list of the top 10 imported products for further scrutiny and has tasked relevant agencies with reviewing whether existing laws governing online product sales necessitate the physical presence of representatives in Thailand.

Measures will focus on tightening law enforcement monitoring by the authorities in the short and medium term as said by Vuttikrai.

The Royal Decree on Digital Platform Service Business Requiring Notification (2022) stipulates that a digital platform provider must notify the ETDA before starting business operations and annually thereafter, reported Bangkok Post.