Thailand Advances U.S. Trade Negotiations and Tightens Controls on False Origin Declarations
On 28 September 2026, Thailand’s Deputy Prime Minister and Minister of Commerce, announced that Thailand and the United States (the “U.S.”) had reached an agreement in principle on the key terms of the proposed Agreement on Reciprocal Trade (the “ART”). Thailand aims to finalize the remaining details before the U.S. announces the outcome of its investigations under Section 301 of the Trade Act of 1974.
In parallel, Thailand is strengthening measures to prevent foreign goods from being falsely declared as Thai-origin. These measures are intended to address U.S. concerns over possible transshipment and to support the ART negotiations.
Status of the ART Negotiations
According to the Thailand’s Deputy Prime Minister and Minister of Commerce’s discussion with the Office of the U.S. Trade Representative (“USTR”), there were no major obstacles identified.
The two countries have agreed on the principal terms of the ART. Technical details and final wording remain under review. The ART is therefore not yet final, and its terms remain subject to further coordination.
Measures Against False Origin Declarations
To build U.S. confidence in Thai exports, the Thai Customs Department (“CD”) is working with the Department of Foreign Trade (“DFT”) to tighten controls on false origin declarations.
The Director-General of the CD, noted that Thailand’s Manufacturing Production Index (“MPI”) understates actual manufacturing output. The index has remained comparatively low even as exports to the U.S. have grown, partly because several large exporters are not captured in it. This gap has fed U.S. concerns over transshipment, where foreign goods are falsely declared as Thai-origin, and over structural excess production capacity.
In response, the CD is improving the accuracy of MPI data, working with the DFT to strengthen origin verification, and tightening enforcement. The key measures are:
- Stronger origin verification. In fiscal year 2027, the CD and DFT plan to enhance origin checks through the Paperless Rules of Origin Verification System (“ROVERs Plus”). This online platform reviews raw materials, production costs and manufacturing processes to determine whether goods satisfy the applicable rules of origin. Exporters of designated goods to the U.S. who apply for a Certificate of Origin (“C/O”) must complete this verification. The measure targets goods that are merely repackaged or relabeled.
- Stricter customs enforcement. The CD is placing greater emphasis on legal penalties, in addition to seizing goods. Depending on the circumstances, the following provisions of the Customs Act B.E. 2560 (2017) may apply:
- Section 202 (incorrect declarations): Submitting incorrect or incomplete declarations or information that may mislead customs officers is punishable by a fine of up to THB 500,000.
- Section 244 (evasion of import or export restrictions): Violations are punishable by a fine of up to THB 500,000, imprisonment of up to 10 years, or both.
Key Takeaways
- Thailand and the U.S. have agreed on the ART’s principal terms, but technical details remain under review.
- The CD is improving MPI data and, with the DFT, strengthening origin verification to address U.S. transshipment concerns.
- Together with stricter enforcement, these steps are expected to build U.S. confidence in Thai exports and support the conclusion of the ART.
Author: Panisa Suwanmatajarn, Managing Partner.
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