Crackdown on cheap foreign goods planned
Short-term plans to be ready by year-endPUBLISHED : 19 NOV 2024 AT 04:50
NEWSPAPER SECTION: BUSINESS
WRITER: PHUSADEE ARUNMAS
The Commerce Ministry has drafted a plan to deal with an influx of cheap substandard goods from abroad.
There was a broad public outcry about the entry of foreign e-commerce platforms into Thailand leading to more substandard products being sold online, harming consumers and local small and medium-sized enterprises (SMEs).
Deputy Commerce Minister Napintorn Srisunpang said the ministry's subcommittee in charge of supporting Thai SMEs and cracking down on poor-quality foreign goods held a meeting on Thursday with representatives of 20 government agencies to discuss measures to crack down on these goods, categorised into three groups: agricultural, consumer and industrial.
Agricultural products will be checked for origin and pesticide residue, which can be harmful to human health, he said.
Consumer goods will be checked for safety and quality, especially those available via e-commerce online platforms such as Temu and Lazada, according to the Commerce Ministry.
Foreign e-commerce operators will be required to set up registered offices in Thailand under the digital platform service law, according to the Electronic Transactions Development Agency, noted the ministry.
Under the Foreign Business Act of 1999, foreign digital platform service operators must obtain permission from the Consumer Protection Board as specified in the lists of the act, as well as disclose shareholding proportion prior to commencing the business.
Chinese online marketplace Temu registered as a legal entity in Thailand on Nov 11, 2024.
The agency plans to issue the required notification in January 2025.
As for industrial goods, the Customs Department plans to allow the import of goods that meet standards set by the Thai Industrial Standards Institute.
The meeting approved plans for the short, medium and long term to be proposed to the Committee on Foreign Product and Business Compliance and the cabinet for approval.
Short-term plans will be completed by year-end.
For the medium term, the ministry will enhance the competitiveness of Thai products both domestically and internationally by 2025.
For the long term, the ministry will expand the market and create sustainability for Thai products along with amending relevant laws to facilitate trade, which is expected to be effective from October 2025.
The Commerce Ministry wants to increase the GDP contribution from SMEs from 35.2% to 40% by 2027.
To achieve this target, various agencies under the subcommittee plan to support SMEs through training, funding, selling products via online marketplaces, and business matching activities at international exhibitions and trade shows.
The subcommittee will have the authority to define urgent policies and measures to integrate various agencies in finding solutions to the problem of importing and distributing substandard goods from abroad, in collaboration with relevant public and private sectors.
Five main measures and 63 action plans have been outlined, which include stringent enforcement of laws and regulations, amending relevant laws to align with future trade, implementing tax measures, supporting SMEs, and enhancing cooperation with trading partners.
