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Super License: The Draft Act on Facilitation in the Consideration of Licenses and Provision of Services to the Public

The Draft Act on Facilitation in the Consideration of Licenses and Provision of Services to the Public, widely known as the “Super License” law, constitutes a major reform to Thailand’s administrative licensing and public service framework. It revises and expands upon the Facilitation of Licensing by Government Agencies Act B.E. 2558 (2015), aiming to reduce bureaucratic obstacles, enhance transparency, integrate digital processes,  foster a more efficient and applicant-centered administration.

1. Background:

The initiative traces its origins to evaluations of the 2015 Act, which demonstrated effectiveness in facilitating public interactions with government agencies but revealed opportunities for improvement amid evolving economic, social, and technological conditions. The Office of the Public Sector Development Commission (OPDC) proposed revisions to minimize unnecessary procedures, discretionary decisions, and compliance burdens while aligning with digital government objectives under the Electronic Government Operations Act B.E. 2565 (2022).

The draft was approved in principle by the Cabinet on April 2, 2024, and underwent public hearings (including a third round from September 20 to October 11, 2024) before review by the Office of the Council of State. It advanced through parliamentary consideration in 2025, passing reviews in both the House of Representatives and the Senate. Progress paused due to parliamentary dissolution prior to final enactment.

2. Key Provisions:

The draft organizes reforms across general principles, procedural enhancements, licensing mechanisms, service delivery improvements, periodic evaluations, centralized systems, and accountability measures. Core provisions include:

•  Expanded Scope: Application extends beyond licenses to registrations, notifications, approvals, and broader public services provided by state agencies, ensuring uniform standards.

•  Mandatory Public Handbooks: Authorities must publish detailed, standardized handbooks specifying criteria, procedures, documents, fees, timelines, conditions, and electronic options, with prohibitions on redundant requests and immediate deficiency notifications.

•  Streamlined Processing: Immediate verification of completeness upon receipt; strict timeline adherence with delay notifications (every 15 days) and explanations for extensions beyond 30 days; oversight by the Commission on Public Sector Development for persistent issues.

•  Automatic Renewal via Fee Payment: Renewal deemed effective upon fee payment for designated licenses (per ministerial regulations), reducing formal re-applications while maintaining compliance monitoring.

•  Super License (Principal License) Mechanism: The Cabinet may designate a principal license for activities requiring multiple approvals; issuance automatically grants subsidiary permissions, enabling single-point completion for sectors like factory construction, hotels, spas, and energy projects.

•  Extended or Permanent Validity: Licenses to have indefinite duration or a minimum five-year term where appropriate, replacing frequent short-term renewals.

•  Provisional/Trial Operations: Low-risk activities permitted temporarily via notification or registration pending full approval, with refinements toward notification systems recommended.

•  Centralized One-Stop and Electronic Centers: Joint physical/digital centers for submissions, inquiries, payments, and tracking; a national electronic central reception center (potentially with private involvement under data protection) forwards applications within one working day and monitors progress.

•  Fast-Track and Multilingual Support: Accelerated channels for urgent cases; forms and information available in English and other languages upon request.

•  Accountability Measures: Procedural violations (e.g., untimely processing, redundant demands) constitute disciplinary offenses for officials.

These elements collectively promote efficiency, digital integration, and reduced discretion while safeguarding public interests.

3. Impact to the Public:

The reforms promise tangible benefits for citizens, entrepreneurs, and investors:

•  Simplified access to services through consolidated processes and single-point submissions, reducing time, costs, and repeated interactions.

•  Greater transparency via mandatory handbooks, clear timelines, and limited discretion, minimizing opportunities for arbitrary decisions or corruption.

•  Faster business commencement, particularly for low-risk activities via provisional operations and automatic mechanisms, supporting economic activities in manufacturing, tourism, hospitality, and emerging sectors.

•  Enhanced competitiveness by improving Thailand’s ease of doing business rankings, attracting domestic and foreign investment, especially in high-value industries such as data centers, semiconductors, and modern agriculture.

•  Improved accessibility for non-Thai speakers and international applicants through multilingual support and digital channels.

Overall, the legislation prioritizes user convenience and national economic growth without compromising regulatory integrity.

4. Current Status:

As of mid-March 2026, the draft has secured prior approval from both the House and Senate but requires reaffirmation following parliamentary dissolution. Public discussions and media coverage in early March 2026 highlight cross-party recognition of its value, positioning it as a continuation of established reform efforts. No enactment has occurred, but momentum suggests active preparation for legislative progression.

5. Key Takeaways:

•  The Super License initiative modernizes governance by emphasizing efficiency, digital tools, and centralized services over fragmented approvals.

•  It exhibits policy continuity across administrations, demonstrating that beneficial reforms transcend political boundaries for national advantage.

•  Successful enactment could substantially alleviate bureaucratic burdens, boost investment attractiveness, and elevate public service quality.

•  Effective rollout will hinge on robust inter-agency coordination, digital infrastructure development, and periodic reviews (every five years) to adapt to future needs.

This proposed legislation underscores Thailand’s commitment to administrative modernization and enhanced competitiveness.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Plans to Reform Excise Tax System to Increase Revenue

Excise tax is one of the principal sources of revenue for the Thai Government (“Government”). For fiscal year 2026 (B.E. 2569), the Government has set a target to collect approximately THB 578.2 billion in excise tax revenue.

In the first quarter of fiscal year 2026 (October 2025 – January 2026), excise tax collection was in total amount of THB 191.3 billion, exceeding the Government’s projection by THB 8.3 billion. The higher-than-expected revenue was largely driven by strong domestic consumption and increased spending during the year-end tourism season and the New Year holidays.

To further strengthen fiscal revenue for fiscal year 2026, the Government is considering several reforms to Thailand’s excise tax system.

Plan to Increase Excise Tax Revenue

The Ministry of Finance aims to increase excise tax revenue by approximately 7.6% through several policy measures, including:

  • restructuring the excise tax framework;
  • adjusting tax rates for certain goods and services; and
  • improving tax administration and enforcement.

The Excise Department has conducted policy studies and is expected to submit the proposed reform plan to the Cabinet for consideration soon.

Proposed Reform of Cigarette Excise Tax

Thailand currently applies a two-tier excise tax system for cigarettes, consisting of the following components:

1. Ad Valorem Tax (Based on Retail Price)

  • 25% for cigarettes priced at not more than THB 72 per pack
  • 42% for cigarettes priced above THB 72 per pack

2. Specific Tax (Based on Quantity)

  • THB 1.25 per cigarette (approximately THB 25 per pack)

According to studies conducted by the Fiscal Policy Office, the current two-tier system has reduced government revenue because cigarette manufacturers often maintain retail prices below the THB 72 threshold in order to benefit from the lower tax rate.

To address this issue, the Excise Department is considering the introduction of a single-tier tax rate, under which cigarettes would be taxed at the same rate regardless of retail price. This approach is expected to reduce price distortions and improve tax collection efficiency.

The Excise Department has requested legal clarification from the Council of State regarding whether the proposed tax structure can be implemented. Further progress will likely depend on the policy direction of the new government.

Automobile Excise Tax Changes

The Government has revised the automobile excise tax framework, with tax rates varying depending on the type of vehicle and its environmental performance. The new tax structure came into effect on 1 January 2026.

Under the revised framework, the excise tax rate is determined primarily based on carbon dioxide (“CO₂”) emission levels, replacing the previous approach that focused mainly on engine displacement (cc). As a result, certain vehicle categories are now subject to higher tax rates compared with those applied in 2025.

Key changes include:

  • Internal combustion engine vehicles (“ICE”) with CO₂ emissions of 100 g/km: the tax rate increased from 12% to 13%.
  • ICE vehicles with engines exceeding 3.0 liters, such as luxury cars and supercars: the tax rate increased from 40% to 50%.
  • Hybrid electric vehicles (“HEV”) with CO₂ emissions not exceeding 100 g/km: the tax rate increased from 4% to 6%.
  • HEV with CO₂ emissions between 101–120 g/km: the tax rate increased from 8% to 9%.
  • HEV with CO₂ emissions between 121–150 g/km: the tax rate increased from 8% to 14%.
  • Electric pickup trucks, which were previously exempt from excise tax, are now subject to 2% tax rate.

As a result of this policy shift, the excise tax rate for vehicles in the eco-car segment has increased from 12% to approximately 13–34%, depending on emission levels.

The Government also plans to gradually increase automobile excise tax rates in two additional phases, during 2028–2029 and again in 2030, as part of its long-term environmental and fiscal policy.

Automobile excise tax collection in the first quarter of fiscal year 2026 increased partly because manufacturers and consumers accelerated vehicle purchases ahead of the tax increase. Following the implementation of the new tax structure on 1 January 2026, tax revenue from automobiles is expected to increase further in the remaining quarters of fiscal year 2026 due to the higher tax rates introduced under the revised framework.

Other Potential Excise Tax Measures

In addition to the proposed reforms to cigarette excise tax and automobile taxation, the Excise Department is also considering further adjustments to excise taxes on several categories of goods and services. However, the specific criteria and potential tax rate changes have not yet been clearly determined.

These potential measures may include:

  • restructuring excise taxes on petroleum and petroleum products;
  • increasing excise tax rates on sin goods, such as alcohol and beer;
  • introducing taxes on products harmful to health, such as a potential salt tax;
  • imposing taxes on environmentally harmful goods, including possible battery or carbon taxes; and
  • reviewing the taxation of luxury goods and services.

Conclusion

Thailand is considering several reforms to its excise tax system in order to strengthen government revenue and improve tax collection efficiency. Key measures include the potential introduction of a single-tier cigarette tax, revisions to the automobile excise tax framework based on vehicle type and CO₂ emissions, and possible adjustments to taxes on petroleum products, alcohol, health-related products, environmentally harmful goods, and luxury goods and services.

These reforms aim not only to increase government revenue but also to support broader policy objectives, such as promoting environmentally friendly vehicles and reducing harmful consumption. However, higher excise tax rates may also increase costs for businesses and retail prices for consumers.

With the revised automobile tax framework already taking effect on 1 January 2026, together with other proposed measures currently under consideration, excise tax revenue is expected to continue increasing throughout fiscal year 2026. Businesses operating in industries subject to excise tax should closely monitor future policy developments, as upcoming regulatory changes may significantly affect tax costs and compliance obligations in Thailand.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand’s New Import Duty Framework for Low-Value Goods: A Policy Shift Toward Competitive Neutrality

On 4 December 2025, the Thai Customs Department issued Customs Notification No. 219/2568 (2025), introducing significant reforms to Thailand’s import duty regime for low-value goods (LVGs). This measure eliminates the long-standing import duty exemption for LVGs as part of a broader policy initiative to address competitive imbalances between imported and domestically supplied goods and to restore tax neutrality in the Thai market. The Notification took effect on 1 January 2026 and remains in force until superseded by subsequent regulation.

Legal Background: Evolution of Import Duty Rules for LVGs

Historically, LVGs were exempt from import duty under Customs Notification No. 191/2561 (2018), which granted duty-free treatment for imported goods with a customs value not exceeding THB 1,500. This exemption was originally designed to reduce administrative burdens associated with customs clearance of small-value shipments.

However, the rapid expansion of cross-border e-commerce has resulted in LVGs being imported into Thailand on a substantial commercial scale, often in direct competition with domestically supplied goods. Over time, the exemption increasingly deviated from its original administrative rationale and raised concerns regarding fair competition and unequal tax treatment.

This measure was expressly temporary and applied only until 31 December 2024, after which the exemption regime reverted to the framework established under Notification No. 191/2561 (2018).

To establish a more sustainable policy framework, the Customs Department subsequently issued Customs Notification No. 219/2568 (2025), which formally repealed Customs Notification No. 191/2561 (2018). Consequently, the previous import duty exemption for LVGs has been fully revoked and is no longer in effect.

Current Import Duty Framework for LVGs

Under Customs Notification No. 219/2568 (2025), the following provisions now apply:

  • Imported goods with a customs value of less than THB 1 remain exempt from import duty.
  • Imported goods with a customs value of THB 1 or more are subject to import duty in accordance with the applicable tariff classification under Thailand’s customs tariff schedule.

Anticipated Benefits

  • Enhanced competitive equity: Domestic businesses, particularly small and medium-sized enterprises (SMEs), benefit from more equitable market conditions, as imported goods are now subject to import duty treatment comparable to locally supplied goods.
  • Improved tax neutrality: The revised framework reduces disparities in tax treatment between imported and domestically supplied goods, promoting a more level playing field.
  • Strengthened customs enforcement: These changes enhance customs oversight of large-scale commercial imports previously classified as low-value shipments, improving revenue collection and trade compliance.

Potential Challenges

  • Increased costs for cross-border sellers and consumers: Goods previously imported duty-free may now incur import duties, resulting in higher overall costs for end consumers and cross-border merchants.
  • Enhanced compliance obligations: Overseas sellers and e-commerce platforms face additional customs formalities and documentation requirements, potentially increasing operational complexity.
  • Administrative burden: The shift may require significant adjustments to existing logistics and compliance infrastructure.
  • Practical and Operational Implications
  • Pricing adjustments: Importers, logistics providers, and e-commerce platforms should revise their pricing structures to reflect increased exposure to import duties and maintain competitive positioning.
  • Process and system updates: Customs declarations, tariff classifications, and internal compliance systems require comprehensive review and updates to ensure alignment with the new regulatory framework.
  • Transitional considerations: Market participants may experience temporary operational adjustments and should implement appropriate change management procedures to facilitate smooth adaptation to the new regime.

Future Policy Considerations

In addition to the revised import duty framework, the Customs Department has indicated interest in simplifying the import duty structure for LVGs through the application of a single, uniform duty rate rather than multiple rates determined by product tariff classification. From a policy perspective, preliminary discussions suggest that collecting import duties on LVGs at an average rate of approximately 10% may be insufficient to achieve meaningful competitive balance. A higher rate—potentially in the range of 30%—has been discussed as more likely to establish parity between domestic and foreign businesses.

However, under the current caretaker government, the Customs Department lacks the authority to issue emergency decrees to amend the customs tariff schedule. Consequently, any modifications to duty rates or tariff structures will require legislative action following the formation of a new government.

Conclusion

The new import duty framework for low-value goods represents Thailand’s strategic policy response to the rapid growth of cross-border e-commerce and reflects a clear commitment to competitive fairness and tax neutrality. While these changes may result in increased costs and compliance obligations for certain overseas sellers and importers, they also strengthen customs enforcement capabilities and create more equitable conditions for domestic businesses.

Businesses engaged in importing goods into Thailand should conduct comprehensive reviews of their pricing strategies, customs classifications, and logistics and compliance processes to ensure ongoing adherence to the new regulatory framework. Early preparation and proactive adaptation will be essential to maintaining operational efficiency and market competitiveness under the revised regime.

Author: Panisa Suwanmatajarn, Managing Partner.

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Online Platform: ETDA’s Push for New Rules on Social Commerce to Safeguard Thai Consumers

In a move to tighten oversight on digital marketplaces, Thailand’s Electronic Transactions Development Agency (ETDA) is gearing up to introduce new regulations targeting social commerce platforms. This initiative aims to close loopholes in consumer protection, ensuring that online transactions meet stringent standards amid the growing popularity of buying and selling via social media. The announcement comes as platforms like Facebook argue they fall outside traditional e-commerce definitions, prompting ETDA to expand its regulatory net.

The backdrop for these changes is rooted in Thailand’s evolving digital economy. With e-commerce booming, the existing Electronic Transactions Committee’s announcement—set to take effect on December 31, 2025—already mandates that e-commerce platforms sell or advertise products adhering to standards from the Thai Industrial Standards Institute (TISI) and the Food and Drug Administration (FDA). However, social media giants such as Facebook have claimed exemption, citing the absence of integrated payment systems and separate user accounts for transactions. ETDA has countered this, stating, “Facebook has informed ETDA that they do not fall under the category. We are therefore preparing a new announcement to cover Facebook, as it cannot be denied that Facebook is widely used as a platform for buying and selling goods known as social commerce, which requires strict product standards.”

This conciliatory approach by ETDA also considers international trade dynamics, particularly U.S. policies under President Donald Trump, which threaten trade retaliation against countries restricting American platforms. By avoiding overly restrictive measures, Thailand seeks to balance consumer safety with open trade, preventing potential barriers for U.S.-based companies operating in the region.

Beyond social commerce, the new rules will extend to space-sharing platforms like Airbnb. ETDA plans to enforce standards for user safety, identity verification, and tenant rights, addressing common issues such as leaks or power outages. Additionally, concerns over monopolistic practices in delivery services—previously requiring platforms to offer at least three shipping options—have been shifted to the Trade Competition Commission (TCC) for handling and streamlining regulatory responsibilities.

These developments underscore Thailand’s commitment to fostering a secure digital ecosystem. As social commerce continues to thrive, with platforms blending social interaction and shopping, the need for robust oversight has become evident. ETDA’s efforts aim not only to protect consumers from substandard or unsafe products but also to promote fair competition and innovation in the online space.

Key Takeaways:

Future Implications: This could set a precedent for more comprehensive digital platform governance in Thailand, boosting trust in online transactions.

Expanded Regulation: ETDA’s new announcement will include social commerce platforms like Facebook, requiring them to enforce product standards from TISI and the FDA to plug consumer protection gaps.

Consumer Focus: The rules prioritize Thai buyers’ safety by mandating quality controls on goods sold online, effective from late 2025 onward.

International Considerations: A balanced approach avoids trade conflicts with the U.S., aligning with global digital trade norms.

Broader Scope: Space-sharing services like Airbnb will face new safety and rights standards, while delivery monopolies fall under TCC jurisdiction.

Author: Panisa Suwanmatajarn, Managing Partner.

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Medical Advertising: Criminal Fraud Convictions for Doctor, Clinic Owner, and Agency in Misleading Stem Cell Campaign

In a landmark ruling delivered by the Criminal Court in 2025, three parties—a licensed physician, the owner of a private medical clinic, and the advertising agency they hired—were found guilty of criminal fraud under Section 341 of the Penal Code. The case centered on misleading online advertisements for stem cell therapy and anti-aging treatments. All three received prison sentences and fines, marking one of the strongest judicial responses to date against false medical advertising in Thailand.

Summary of the Court’s Findings:

The court determined that the defendants jointly created and published advertisements on Facebook and Line that contained the following false or exaggerated claims:

  • “Stem cell therapy can cure diabetes, high blood pressure, and knee degeneration permanently.”
  • “100 % success rate with no side effects”
  • “Patients will look 10–20 years younger after one treatment.”

The advertisements used before-and-after photos of patients (without proper consent or medical evidence) and included fabricated testimonials. When patients paid between 280,000 and 650,000 baht per course, they received only standard vitamin infusions or platelet-rich plasma (PRP), not the promised stem cell therapy.

The court ruled that:

  • The physician knowingly allowed his name and medical license to be used in the deceptive ads
  • The clinic owner approved and paid for the campaign despite knowing the claims were impossible to fulfill
  • The advertising agency designed the content, posted it, and collected the advertising fee, fully aware of the falsehoods

All three were convicted of fraud by deception, causing property loss to the victims (Section 341 Penal Code) and of violating the Medical Profession Act B.E. 2525 (1982) (using a physician’s name in misleading advertising) and the Consumer Protection Act B.E. 2522 (1979) (false advertising).

Sentences Imposed:

  • The doctor: 2 years imprisonment (suspended for 4 years) + 200,000 baht fine
  • The clinic owner: 2 years 6 months imprisonment (suspended for 5 years) + 300,000 baht fine
  • The agency director: 2 years imprisonment (suspended for 4 years) + 200,000 baht fine

The court also ordered all three defendants to pay compensation totaling 4.2 million baht to the 12 victim-patients who filed complaints.

Relevant Laws Applied in the Judgment:

  1. Penal Code, Section 341 – Fraud by deception causing property loss (maximum 3 years imprisonment and/or fine)
  2. Medical Profession Act B.E. 2525 (1982), Section 27 – Prohibits physicians from allowing their name to be used in false or exaggerated advertising.
  3. Consumer Protection Act B.E. 2522 (1979), Section 22 – Prohibits false, deceptive, or exaggerated advertising that may cause misunderstanding
  4. Medical Facilities Act B.E. 2541 (1998) – The clinic’s license was placed under review for allowing unethical advertising.

How These Laws Interact:

  • The Penal Code provides criminal punishment for the actual financial harm caused to patients.
  • The Medical Profession Act targets the doctor’s ethical breach and can lead to license suspension or revocation by the Medical Council.
  • The Consumer Protection Act allows the Consumer Protection Board to impose additional administrative fines and bans on advertising.
  • When all three laws are applied together, the court can impose both imprisonment and compensation, while the professional council and government agencies handle long-term sanctions (license loss, business closure)

Key Takeaways:

  • Shared Criminal Liability: For the first time, the entire chain—physician, clinic owner, and advertising agency—was held jointly criminally responsible for fraudulent medical ads.
  • No “Ignorance” Defense: Doctors cannot claim innocence by saying they merely lent their name; agencies cannot hide behind “client instructions” if they know claims are false.
  • Severe Consequences: Beyond fines and suspended sentences, defendants face civil compensation and potential professional sanctions (e.g., license revocation).
  • Patient Protection Strengthened: Victims can pursue remedies through criminal complaints, Consumer Protection Board filings, or Medical Council reports.
  • Deterrent Effect: The ruling signals stricter enforcement against exaggerated health claims, especially in high-value treatments like stem cells and anti-aging therapies.

Significance of the Ruling:

This judgment sends a clear message that misleading medical advertising is not merely an ethical violation but can constitute criminal fraud when it induces financial loss. Patients who have paid for treatments after seeing similar online ads are strongly encouraged to retain evidence (screenshots, receipts, chat records) and file complaints with the Consumer Protection Board, the Medical Council, and/or the inquiry officer.

Author: Panisa Suwanmatajarn, Managing Partner.

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Burden of Proof in Credit Card Fraud: A Landmark Thai Supreme Court Ruling

The Thai Supreme Court has reaffirmed a critical principle in credit card fraud cases: the burden of proof rests with the issuing bank, not the cardholder. This represents a departure from the general rule that the party asserting a claim bears the burden of proof. In doing so, the Court has clarified the allocation of risk between consumers and financial institutions in disputes involving unauthorized credit card transactions. Supreme Court Judgment No. 2624/2568 establishes an important precedent on liability for unauthorized credit card transactions and significantly strengthens consumer protection under Thai law.

Case Summary

This case arose from a claim filed by the issuing bank alleging that the cardholder failed to make payment on multiple outstanding debts arising from credit card transactions recorded under the cardholder’s account.

The cardholder consistently maintained that the credit card had not been used for the transactions recorded on the dates specified by the issuing bank. The cardholder further asserted that the credit card information had been unlawfully obtained and misused by a third party, as evidenced by a clear discrepancy between the signature appearing on the transaction records and the cardholder’s actual signature. The matter was subsequently reported to the inquiry officer.

man in gray sweater holding black smartphone

In the court of first instance, the cardholder was ordered to pay the outstanding debt. On appeal, although both parties sought review of the judgment, the Court of Appeal upheld the cardholder’s liability and increased the amount payable, declining to consider the defense of unauthorized use on the grounds that it had not been properly raised before the Court of First Instance.

The Supreme Court reversed the lower courts’ rulings, holding that the burden of proof properly rested with the issuing bank, given its superior control over credit card security measures and specialized expertise in transaction authorization systems. As the issuing bank failed to discharge this burden, the claim was dismissed and the cardholder was found not liable. The Court further noted that both the issuing bank and the merchant bore partial responsibility for failing to conduct adequate verification and to implement appropriate preventive measures.

The Burden of Proof Issue

Once credit card fraud is alleged, the key issue is whether the credit card system issued by the bank was sufficiently secure against copying or counterfeiting, and consequently, which party bears the burden of proof.

The Supreme Court held that matters relating to credit card security concern manufacturing, design, and operational processes that fall within the issuing bank’s specific knowledge and control. Accordingly, pursuant to Section 29 of the Consumer Case Procedure Act B.E. 2551 (2008), the burden of proof rests with the issuing bank.

In this case, the issuing bank failed to adduce technical or expert evidence demonstrating the adequacy of its credit card security system. Moreover, evidence showed that other cardholders had lodged similar complaints involving counterfeit cards. As a result, the issuing bank failed to discharge its burden of proof.

Key Impact on the Consumer Protection Sector

1. Shift of the Burden of Proof

The burden of proof is shifted from the cardholder to the issuing bank, as the issuing bank possesses specialized knowledge and expertise in credit card systems and transaction security. Accordingly, cardholders are not required to prove technical matters beyond their reasonable capacity.

2. Enhancement of Bank Security Standards

Following this judgment, issuing banks are required to substantiate claims regarding system security with concrete technical evidence, rather than relying solely on general assertions or internal standards.

3. Promotion of Consumer Confidence

The judgment reinforces consumer protection based on principles of fairness, enhances public confidence in digital financial systems, and supports broader economic activity.

4. Precedent Value

This judgment establishes an important precedent affirming that issuing banks are responsible for implementing effective fraud prevention measures and ensuring the security of credit card systems. Future disputes involving credit card fraud may rely on this judgment in assessing bank liability.

Conclusion

Thai Supreme Court Judgment No. 2624/2568 marks a significant advancement in consumer protection law by placing the evidentiary burden on issuing banks in cases involving electronic payment fraud. The judgment reinforces fairness in the assessment of contractual obligations, strengthens protection for cardholders, and places increased pressure on financial institutions to enhance their security, authentication, and fraud monitoring systems.

Author: Panisa Suwanmatajarn, Managing Partner.

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Proposed Relaxations to Foreign Exchange Regulations

Current Framework and Underlying Issues:

Thailand’s foreign exchange regulations, administered by the Bank of Thailand (BOT) under the authority of the Ministry of Finance (MOF), are designed to centralize foreign currency flows, channel them toward public benefit, and maintain the stability of the Thai baht. These rules govern transactions involving the purchase, sale, exchange, or transfer of foreign currencies, which must be conducted through licensed authorized entities, such as commercial banks. Key provisions include the mandatory repatriation of foreign-sourced income exceeding USD 1 million (or equivalent) within 360 days of receipt—encompassing proceeds from exports, services, loans, and investments—and the requirement for investors to notify the BOT prior to outbound transfers for foreign securities investments. Upon notification, the BOT issues an Intention Acknowledgment Certificate, which must be submitted to banks as proof of compliance.

Despite these measures supporting macroeconomic stability, they have introduced structural challenges in an era of expanding international trade and investment. The continuous growth in cross-border commerce has heightened the demand for efficient foreign currency management among businesses and individuals, including handling overseas revenues, diversifying portfolios through foreign securities, and mitigating exchange rate risks. However, the current thresholds and procedural mandates impose administrative burdens, elevate cross-border transfer costs, and constrain liquidity. For instance, the rigid repatriation rule compels entities to return funds promptly, even when retaining them abroad could optimize future payments or consolidate inflows, thereby increasing operational inefficiencies and opportunity costs. Similarly, the pre-notification process for investments adds layers of documentation and coordination among investors, banks, and the BOT, hindering timely access to global markets. These constraints, rooted in pre-existing foreign exchange ecosystem limitations, have been progressively addressed since 2020 through phased reforms, yet residual rigidities persist amid volatile global conditions.

Proposed Amendments and Their Rationale:

To address these issues and advance the BOT’s Foreign Exchange Ecosystem Development Plan—initiated in 2020 to foster balanced capital flows, enhance transaction flexibility, and reduce private sector costs—the MOF and BOT are currently conducting a public consultation on targeted relaxations. This initiative aligns with broader efforts to modernize Thailand’s financial framework, promoting resilience against currency fluctuations while upholding oversight. The proposals, detailed in a draft ministerial regulation, encompass two principal amendments, effective upon gazette publication following stakeholder input.

1.  Elevation of the Foreign Income Repatriation Threshold: Under the existing regime, any person or entity that earns USD 1 million or more in foreign income must repatriate it to Thailand—via sale to an authorized bank or deposit in a foreign currency account—within 360 days. The proposed change raises this threshold to USD 10 million or equivalent, exempting smaller inflows from mandatory return. This relaxation directly alleviates liquidity pressures by permitting the retention of funds abroad for strategic uses, such as offsetting future overseas obligations or aggregating receipts for a single, cost-efficient repatriation. By minimizing frequent transfers, it curtails associated fees and administrative efforts, thereby streamlining cash flow management without compromising the centralization of substantial inflows for macroeconomic monitoring.

2.  Streamlining Documentation for Outbound Foreign Securities Investments: Presently, investors intending to transfer funds abroad for securities must submit a prior notification to the BOT, including relevant details via designated systems, to obtain the Intention Acknowledgment Certificate for presentation to commercial banks. This step, while ensuring regulatory adherence, generates redundant paperwork and delays. The amendment eliminates this BOT notification and certificate issuance, substituting it with a simplified acknowledgment form—attesting to the investor’s awareness of applicable guidelines and commitment to compliance—submitted directly to the commercial bank. Applicable to non-retail outbound investments (excluding those via Thai intermediaries such as securities firms or personal funds), this reform expedites processing, reduces inter-institutional coordination, and empowers banks to handle verifications autonomously. Collectively, these measures enhance operational agility, lower compliance costs, and facilitate portfolio diversification, supporting Thailand’s integration into global capital markets.

Anticipated Benefits and Stakeholder Impacts:

The proposed relaxations are projected to yield predominantly positive economic outcomes, bolstering efficiency across the financial ecosystem while mitigating risks to baht stability through retained thresholds and reporting safeguards. No new licensing systems, committees, criminal penalties, or discretionary powers for officials are introduced, preserving a principles-based approach.

•  Businesses and Individuals: Enhanced flexibility in managing overseas earnings will enable more effective financial planning, such as retaining funds for international expenditures or risk hedging, thereby reducing transfer expenses and improving overall liquidity. This is particularly advantageous for exporters and service providers navigating volatile trade environments.

•  Thai Investors: Simplified outbound investment procedures will accelerate access to foreign securities, promoting risk diversification and yield optimization without the encumbrance of multi-step approvals, ultimately fostering greater participation in international markets.

•  Commercial Banks: Relief from BOT-mediated notifications and certificate handling will streamline transaction facilitation, diminish internal workflows, and improve client service, allowing banks to focus on core advisory and execution roles.

Broader societal benefits include reinforced economic resilience, as these changes align with ongoing BOT initiatives to counter baht appreciation pressures and structural market imbalances. Environmental or social impacts are negligible, with primary effects confined to financial operations.

Conclusion:

These proposed amendments by the MOF and BOT represent a measured evolution in Thailand’s foreign exchange regime, directly tackling administrative hurdles to unlock greater efficiency in cross-border finance. By elevating repatriation thresholds and rationalizing investment documentation, the reforms will empower stakeholders to navigate global opportunities with reduced friction, while safeguarding systemic stability. As Thailand’s economy deepens its international ties, such targeted enhancements underscore a commitment to adaptive, stakeholder-informed policymaking.

Author: Panisa Suwanmatajarn, Managing Partner.

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First-Baht Import Duty Collection under the Quick Big Win Initiative: Towards a Fair and Sustainable E-Commerce Market

On 25 December 2024, the Ministry of Finance issued a temporary measure exempting import duties on consignments valued at no more than THB 1,500 per item purchased through foreign-operated e-commerce platforms, subject to the declaration of the “LVG” code on the commercial invoice. This exemption remained in effect from 1 January 2025 to 31 December 2025.

Subsequently, in accordance with the government’s Quick Big Win policy, the Customs Department implemented the collection of import duties on all online purchases from the first baht, effective 1 January 2026. This measure applies to both domestic and international e-commerce platforms. The authorities continue to coordinate with platform operators to ensure compliance and prevent the distribution of unlicensed or substandard goods.

Quick Big Win Policy of the Customs Department

The Quick Big Win policy of the Customs Department comprises three principal pillars:

  • Trade Enabler – Enhancing trade facilitation by revising customs regulations and procedures that constitute barriers to import and export operations, improving logistics efficiency, and permitting Inland Container Depots (ICDs) to conduct customs clearance for export goods directly.
  • Social Protector – Safeguarding society against unlawful products through the execution of Memoranda of Understanding (MOUs) with online platforms to regulate and prevent the distribution of illegal goods.
  • Revenue Collector – Ensuring equitable revenue collection with a target exceeding THB 600 billion, encompassing import duties, value-added tax (VAT), excise tax, and interior-related taxes.

New Measures: Collection from the First Baht

On 5 November 2025, the Director-General of the Customs Department announced that import duties would be collected on all goods purchased through online platforms from the first baht. This measure took effect on 1 January 2026, in alignment with the government’s Quick Big Win policy.

The measure applies to transactions conducted via major domestic e-commerce platforms, such as Shopee and Lazada, as well as international platforms, including TikTok, eBay, Amazon, and Alibaba. The Customs Department continues to coordinate closely with these platforms to ensure full compliance with applicable laws and to prevent the importation and distribution of unlicensed or substandard products that fail to meet national safety and quality standards.

Stakeholders Affected by the New Measure

  1. Domestic Businesses – Local sellers benefit from a fairer competitive environment, as foreign sellers lose the cost advantage previously derived from import duty exemptions. While competition may intensify, pricing dynamics become more balanced.
  2. Consumers – Imported goods may incur slightly higher costs; however, consumers benefit from enhanced product safety, improved quality assurance, and greater transparency, resulting from stricter controls on unauthorised or substandard items.
  3. E-Commerce Platforms – Both domestic and international platforms (including Shopee, Lazada, TikTok, and Amazon) must ensure compliance with customs regulations, accurately report transactions, and prevent the sale of non-compliant products.

Conclusion

The transition from the low-value import duty exemption to a comprehensive duty collection framework strengthens fair competition by reducing the cost advantages previously enjoyed by overseas sellers. While certain imported goods may experience modest price increases, consumers benefit from improved safety standards, quality assurance, and pricing transparency. Concurrently, domestic businesses gain access to a more equitable competitive environment.

This measure also supports government revenue collection through duties, VAT, and excise taxes, aligning with Thailand’s Quick Big Win policy objectives. By balancing trade facilitation, consumer protection, and fiscal sustainability, the initiative fosters a more equitable and sustainable import and e-commerce market.

Author: Panisa Suwanmatajarn, Managing Partner.

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Customs Duty: Duty Exemption Procedures under the Amended AANZFTA

The Second Protocol to Amend the ASEAN–Australia–New Zealand Free Trade Area (AANZFTA) modernizes the original agreement to align with contemporary trade practices. This amended agreement entered into force for Thailand and eight other Parties—Australia, New Zealand, Singapore, Brunei Darussalam, Malaysia, Lao People’s Democratic Republic, and the Socialist Republic of Viet Nam—on October 1, 2025, and for the Republic of the Union of Myanmar on October 12, 2025.

To fulfill Thailand’s obligations under the amended AANZFTA, the Customs Department of Thailand issued Notification No. 149/2568, titled “Criteria and Customs Procedures for Exemption and Reduction of Customs Duties under the ASEAN–Australia–New Zealand Free Trade Area (No. 3)” (“Notification”). This Notification aims to enhance trade facilitation, promote transparency, and ensure adherence to international trade commitments.

Criteria for Duty Exemption or Reduction:                                                        

To qualify for customs duty exemptions or reductions under the amended AANZFTA, goods must satisfy the following conditions:

  1. Origin Requirement: Goods must originate from an ASEAN member country (limited to participating Parties), Australia, or New Zealand, as defined by the AANZFTA Rules of Origin.
  2. Proof of Origin: Importers must provide either:
  3. A Certificate of Origin (Form AANZ) issued by a competent authority; or
  4. An Origin Declaration issued by an approved exporter.
  5. Low-Value Imports: Goods with an FOB or CIF value not exceeding USD 200 per shipment are eligible for duty benefits without requiring a Certificate of Origin (Form AANZ) or an Origin Declaration.

Benefits of the Notification:

The Notification offers several advantages for businesses trading with AANZFTA member countries, including:

  1. Cost Reduction and Competitiveness: Tariff reductions lower import costs, enabling businesses to offer competitive pricing and improve profitability.
  2. Efficient Customs Processes: Standardized documentation and clear procedures expedite customs clearance and reduce border delays.
  3. Support for Small and Medium Enterprises (SMEs): Simplified requirements for low-value imports (FOB/CIF ≤ USD 200) allow SMEs to access preferential rates without formal documentation.
  4. Improved Trade Compliance: Uniform procedures facilitate adherence to international trade regulations, enhancing compliance and transparency.

Examples of Eligible Goods:

Goods qualifying for full or partial duty exemptions under the amended AANZFTA include:

•  Electronic Equipment: Blenders, washing machines, and air conditioners.

•  Food and Beverage Products: Eggs and truffles.

•  Other Goods: Golf balls, tables, and fountain pens.

Conclusion:

The Notification provides comprehensive guidance on the criteria and procedures for customs duty exemptions under the amended AANZFTA. Eligible goods meeting origin requirements and supported by appropriate documentation benefit from full or partial duty exemptions, reducing costs, streamlining customs processes, and supporting SMEs. By establishing transparent and standardized procedures, the Notification strengthens Thailand’s commitment to facilitating international trade while ensuring compliance with AANZFTA obligations.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Streamlines Origin Certification Procedures for Exporters Under New DFT Notification

Pursuant to the mandate of the Ministry of Commerce, the Department of Foreign Trade (DFT) has been designated as the sole authority responsible for issuing Certificates of Origin (C/O) for goods exported from Thailand. The DFT recently issued the Notification on the Registration of Authorized Exporters for Self-Certification of Rules of Origin under International Trade Agreements or International Trade Practices B.E. 2568 (2025) (the “Notification”), which took effect on 1 October 2025.

This Notification establishes the criteria, procedures, and conditions for exporters to register and obtain authorization to perform self-certification of origin, enabling them to issue their own origin declarations to claim preferential tariff treatment or other benefits under international trade agreements.

Purpose of the Notification

The Notification enables exporters to certify the origin of their goods under regional trade agreements more efficiently, without relying exclusively on government-issued certificates of origin. The initiative is designed to:

  • Facilitate international trade;
  • Reduce administrative burdens; and
  • Expand exporters’ access to preferential tariff treatment under applicable trade frameworks.

A Streamlined Digital Process

Under this Notification, registration is conducted through an enhanced digital system, which:

  • Improves operational efficiency and transparency;
  • Supports digital compliance monitoring by the DFT; and
  • Enables faster access to preferential customs benefits, significantly reducing processing times.

This development provides qualified exporters with greater procedural efficiency, expedited access to tariff preferences, and reinforces Thailand’s commitment to regulatory harmonization in response to increasing global scrutiny of origin compliance.

Author: Panisa Suwanmatajarn, Managing Partner.

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