Requesting Advance Rulings on Customs Classification under Thai Law

March 14, 2025

Requesting Advance Rulings on Customs Classification under Thai Law

Importers of goods into Thailand can often reduce confusion and preempt customs disputes by proactively seeking an advance ruling on customs classification. This process, which has been possible since Customs Department Announcement No. 17/2561 in 2018, allows importers to request a ruling from Thailand’s Customs Department on the tariff classification of goods prior to importation. Obtaining an advance ruling significantly reduces risks and uncertainties in business operations.

Benefits of Requesting an Advance Ruling

Some of the benefits of requesting an advance ruling include:

Certainty and clarity: Receiving an advance ruling helps importers know the correct tariff classification before importing, aiding in confident business planning and decision-making. Having clear information on tariff classification reduces the risk of fines or penalties due to incorrect classification.
Reducing disputes: An advance ruling helps reduce disputes and delays in the customs clearance process, ensuring smooth operations. Importers will have clear evidence to confirm the correct tariff classification, reducing conflicts with customs officials.
Cost management: Knowing the tariff classification in advance allows importers to accurately estimate import costs. Financial planning and cost management become more efficient, enabling businesses to better control expenses.
Legal compliance: Requesting an advance ruling helps importers comply with customs laws, reducing the risk of fines or penalties. Proper legal compliance builds business credibility and reduces the risk of audits.
Operational efficiency: The customs clearance process becomes faster and more efficient as customs officers can proceed based on the predetermined tariff classification. Reducing clearance time helps businesses bring goods to market more quickly.

Requesting an Advance Ruling

Obtaining advance rulings from the Customs Department is a simple and straightforward process that involves the following steps:

Document preparation: Importers must prepare relevant documents such as purchase orders, sales contracts, price lists, or other documents indicating the goods to be imported. Complete and clear documentation helps expedite the review process.
Request submission: Importers must submit the request to the Customs Department, either online through the Customs Department’s website or in person at the tariff classification office.
Review process: The Customs Department will review the request and submitted documents. If sufficient information is provided, the process will be completed within 30-60 working days, depending on the complexity of the goods. A swift review helps importers plan their imports efficiently.

Importers should submit the request at least 30 working days before importing to allow sufficient time for review. Early submission reduces the risk of delays in importing. The request must contain clear and complete information to ensure a quick and accurate review. Providing complete information reduces the risk of request rejection.

Advance rulings on customs classification issued by the Thai Customs Department are valid for a period of three years from the date of issuance, unless there are changes in the relevant laws, regulations, or circumstances that affect the ruling.

Conclusion

Requesting an advance ruling on classification is a valuable tool for importers to reduce risks and uncertainties in business operations. Receiving an advance ruling helps importers know the correct tariff classification, reduce disputes, and manage costs efficiently. Importers should take advantage of this process to ensure smooth and legally compliant import operations.

Related Professionals

Chitchai Punsan

Thailand

+66 2056 5779

Email

RELATED INSIGHTS

March 13, 2025

Lexology Panoramic: Licensing 2025 – Vietnam

Tilleke & Gibbins has updated the Vietnam chapter in the newly released Licensing 2025 guide, published by Lexology Panoramic. The comparative guide provides companies and other interested readers with information on licensing law and practice in various countries around the world. Licensing 2025 provides detailed information on the following topics: Restrictions, laws and licensing arrangements Intellectual property issues: Paris Convention for the Protection of Industrial Property, contesting the validity of licensor’s IP rights, invalidity and expiry of IP rights, security interests, proceedings against third parties, sublicensing, jointly owned IP, first to file, scope of patent protection, trade secrets, copyright Software licensing: Perpetual licensing, legal requirements, user restrictions Royalties and payments, currency conversion, and taxes: Relevant legislation, restrictions, taxation of foreign licensors Competition law issues: Restrictions on trade, legal restrictions, and IP-related court rulings Indemnification, disclaimers, and damages: Prevalence and enforceability of indemnity provisions and contractual waivers of damages Termination: Right to terminate, impact of termination Bankruptcy: Impact of licensee or licensor bankruptcy Dispute resolution: Governing law, arbitration, enforceability, injunctive relief, contractual waivers The Vietnam chapter was authored by Linh Thi Mai Nguyen, partner and head of Tilleke & Gibbins’ trademark team in Vietnam; Son Thai Hoang, trademark executive; and Chi Lan Dang, associate, of Tilleke & Gibbins’ trademark team, along with corporate and commercial senior associate Tu Ngoc Trinh, who has extensive experience in franchising and competition law. The Vietnam chapter is available below as a PDF. Tilleke & Gibbins also contributed the Thailand chapter to Licensing 2025. Readers can gain 30 days of complementary access to the full Licensing 2025 guide and the rest of Lexology Panoramic’s varied offerings through this link.

March 13, 2025

Lexology Panoramic: Licensing 2025 – Thailand

Licensing specialists at Tilleke & Gibbins in Bangkok have contributed the Thailand chapter to the newly issued Licensing 2025, a comprehensive guide from Lexology Panoramic to licensing in various jurisdictions around the world. The Thailand chapter covers the following topics: Laws and licensing arrangements: Unfair Contract Terms Act, Trade Competition Act, pre-contractual disclosure, registration of international licensing, implied obligations, Civil and Commercial Code, Trademark Act, Patent Act, Trade Secrets Act Intellectual property issues: Paris Convention for the Protection of Industrial Property, contesting the validity of licensor’s IP rights, invalidity and expiry of IP rights, security interests, proceedings against third parties, sublicensing, jointly owned IP, first to file, scope of patent protection, trade secrets, copyright Software licensing: Perpetual licensing, legal requirements, user restrictions Royalties and payments, currency conversion, and taxes: Relevant legislation, restrictions, taxation of foreign licensors Competition law issues: Restrictions on trade, legal restrictions, and IP-related court rulings Indemnification, disclaimers, and damages: Prevalence and enforceability of indemnity provisions and contractual waivers of damages Termination: Right to terminate, impact of termination Bankruptcy: Impact of licensee or licensor bankruptcy Dispute resolution: Governing law, arbitration, enforceability, injunctive relief, contractual waivers The Thailand chapter was authored by Alan Adcock, partner, and Kasama Sriwatanakul, counsel, both in the Thailand regulatory affairs team. The full Thailand chapter is available below as a PDF. Tilleke & Gibbins also contributed the Vietnam chapter to Licensing 2025. Readers can gain 30 days of complementary access to the full Licensing 2025 guide and the rest of Lexology Panoramic’s varied offerings through this link.

March 6, 2025

Thailand Extends Jurisdictional Powers of Tax Court to Criminal Tax and Customs Disputes

On February 18, 2025, the Thai Senate approved an amendment to the Act on the Establishment of and Procedures for the Tax Court. This follows the July 2024 approval by the Thai cabinet and subsequent preparation of supporting secondary legislation. This important amendment to procedural law, once it takes effect, will extend the exclusive jurisdictional powers of the Tax Court to all criminal tax, customs, and excise tax claims in addition to the court’s existing jurisdiction over all such civil claims. The amendment, while now formally approved by the legislature, is awaiting the king’s signature and will take effect 180 days after its publication in the Government Gazette. Based upon its projected publication date, the amendment will likely take effect by the end of the third quarter of this year. This development is set to offer a more sophisticated Tax Court litigation process for highly specialized and often complex criminal tax and customs claims, something with which Thailand’s traditional criminal courts have struggled. It also ensures that all tax and customs matters are adjudicated before the same court, saving time, party costs, and judicial resources. This appears likely to result in more consistent adjudication of criminal tax and customs disputes, a benefit for the Thai government and party litigants alike. Any ongoing criminal tax and customs claims already commenced with the respective criminal courts on the date on which the amendment becomes effective will remain under the exclusive jurisdiction of those criminal courts. The Tax Court will have exclusive jurisdiction over all other claims. This important legislative change offers those managing or otherwise facing civil and/or criminal Thai tax or customs disputes the opportunity to more effectively plan and execute a uniform defense strategy before a single, qualified forum.

March 5, 2025

How Importers in Thailand Can Win Customs Assessments: The WCO’s Explanatory Notes

It is a common misconception that importers will never win classification assessments by the Thai Customs Department. However, this belief is far from the truth. Importers can indeed prevail in customs assessments, and one of the most effective tools at their disposal is the World Customs Organization’s (WCO) Explanatory Notes. The WCO’s Explanatory Notes are an indispensable resource for understanding the Harmonized System (HS) of tariff nomenclature. These notes provide detailed commentary on the scope of each heading, including lists of main products included and excluded, technical descriptions, and practical guidance for identifying goods. By leveraging these notes, importers can ensure accurate classification of their goods, which is crucial for fair customs assessments. Understanding the Explanatory Notes The Explanatory Notes serve as the official interpretation of the Harmonized System at the international level. They offer clarity on the classification of goods, which can significantly impact the duties and taxes imposed on imports. For instance, the notes provide insights into the properties, methods of production, and uses of various goods, helping importers to classify their products correctly and avoid misclassification disputes. Thailand’s Customs Tariff Decree holds that the classification interpretation must follow the General Rules for Interpretation together with the Explanatory Notes to the Harmonized System of the WCO. Most Thai Supreme Court decisions on classification also refer to the WCO’s Explanatory Notes and past rulings as the basis of their decisions. Successful Appeals There have been numerous instances of importers successfully appealing customs assessments by relying on the Explanatory Notes. For example, one importer of electronic components was initially assessed a higher duty due to misclassification. By presenting evidence from the Explanatory Notes that accurately described the components, the importer was able to demonstrate the correct classification and secure a favorable reassessment. Practical Steps for Importers To minimize the

You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

Industries

Practices

March 14, 2025