Thailand mandates foreign e-commerce offices under new law

Thailand will soon require foreign e-commerce operators to establish registered offices within the country, as stipulated by the new digital platform service law.

The Electronic Transactions Development Agency (ETDA) announced this move following consultations with the Department of Trade Negotiations to ensure compliance with international trade agreements, according to executive director Chaichana Mitrpant.

The initiative is part of broader efforts by various state agencies to address the influx of low-cost products from China flooding the Thai market through e-commerce platforms. The digital platform service law mandates that operators of a certain size must provide critical information to the ETDA before commencing operations.

The agency intends to introduce a clause in the law requiring these operators to register their offices in Thailand. Chaichana noted that Chinese e-commerce giant Temu has already had its Singapore-based subsidiary register with the ETDA as a digital platform operator. Over 1,400 digital platform service operators have complied with the law to date.

Visanu Vongsinsirikul, Secretary-General of the Trade Competition Commission of Thailand, confirmed that the commission is monitoring business practices and identifying risky behaviours.

“If any business is found engaging in risky or unfair trade practices, such as predatory pricing or selling products below cost, we will take action.”

Penalties for violations can include criminal and administrative sanctions, such as up to two years of imprisonment, fines of up to 10% of annual revenue, or both.

Pawoot Pongvitayapanu, a pioneer in the local e-commerce sector, emphasised the need for the Thai government to conduct thorough assessments of the impact of cheap imported goods. He suggested using the Traffy Fondue city management platform to allow citizens to report issues related to the influx of these items and to monitor the resolution of such problems, reported Bangkok Post.

In related news, Thailand’s Trade Policy and Strategy Office (TPSO) raised alarms about the expanding trade deficit with China.