Thailand Free Trade Agreements (FTA) Explained — How Importers Can Reduce Duty Costs
Thailand participates in several Free Trade Agreements that can significantly reduce or even eliminate import duties for many products. However, many foreign companies fail to use these benefits correctly.
Here’s a complete, SEO-friendly guide to understanding and applying FTAs when importing into Thailand.
**Why FTAs Matter for Importers**
Duty reductions can be huge—sometimes dropping from 30% to 0%.
For high-volume imports, FTAs can save millions of baht per year.
Common FTAs Thailand uses include:
- ASEAN (ATIGA)
- Thailand–China FTA (ACFTA)
- Thailand–Japan (JTEPA)
- Thailand–Korea FTA
- ASEAN–Australia–New Zealand (AANZFTA)
- ASEAN–India FTA (limited categories)
But the key is submitting correct origin documentation.
**How to Use an FTA**
**1. Meet Origin Requirements**
Goods must “qualify” under FTA origin rules. This means:
- Sufficient local content
- Proper manufacturing process
- Correct origin region
Every FTA has different rules.
**2. Obtain the Certificate of Origin (CO)**
Depending on the FTA, the exporter must provide:
- Form E (China)
- Form AJ (Japan)
- Form AK (Korea)
- Form D (ASEAN intra-trade)
- Form AANZ (Australia/New Zealand)
The CO must match the invoice exactly.
**3. Make Sure All Details Match**
Thai customs checks:
- HS code
- Product description
- Quantity
- Weight
- Manufacturer details
- Origin criteria
If something doesn’t match, customs can reject the CO—even if the product genuinely qualifies.
**4. Submit Documents Before Clearance**
FTA documents must be provided during customs declaration, not after. Late submission usually invalidates preferential duty.
**Common Reasons FTA Benefits Get Rejected**
- Wrong HS code
- Product description mismatch
- Missing signatures
- Incorrect form type
- Exporter not authorized to issue CO
- Missing origin criteria
- Altered or damaged documents
Each one will cause your shipment to be charged at full duty.
**Why Many Businesses Still Overpay**
Most rejections happen not because businesses are ineligible, but because:
- Exporters prepare incorrect COs
- Importers don’t know about FTA requirements
- Documents arrive late
- Details don’t match
- Brokers don’t double-check paperwork
A simple review by a Thailand customs specialist can save significant costs.
**Final Thoughts**
Thailand’s FTAs offer powerful benefits for international importers—but only when used correctly.
With proper documentation and local customs expertise, you can reduce duty costs dramatically and keep your supply chain efficient.