BANGKOK, THAILAND – Thailand will introduce a 10 percent import levy on low-cost online orders from January, ending decades of duty-free treatment for small parcels.
Government moves to curb cheap imports
From 1 January, all online purchases valued at up to 1,500 baht (about 38 euros) will no longer be exempt from import duties, as the government seeks to level the playing field between overseas sellers and domestic firms. The measure, championed by Finance Minister Ekniti Nithanprapas, responds to a surge of low-priced goods from China that officials say has undercut local industry and intensified competitive pressure.
“We must create a fair environment for small and medium-sized enterprises.”
said Ekniti Nithanprapas, finance minister.
Bangkok’s new rules mirror steps taken in the United States and the European Union, and are expected to slow import volumes. Large e-commerce platforms such as Lazada and Shopee are to be required to help collect the new duty at the point of sale, effectively turning platforms into tax collection partners for the state.
Logistics overhaul and end of duty-free threshold
The change will force a sweeping reorganisation of cross-border shipping. Freight companies will need to assess and clear customs on each individual parcel, creating a heavy administrative burden and pushing up operating costs. The law firm Tilleke & Gibbins described the reform as a watershed for the sector, saying:
“Millions of small consignments that were previously cleared tax-free will now be examined. This changes the entire logistics chain.”
said Tilleke & Gibbins, law firm.
International sellers are expected to revise pricing and shipping models as cheap consumer goods become more expensive and delivery times lengthen. Some may shift to stocking goods in domestic warehouses to avoid border bottlenecks, but that would entail higher fixed costs. Logistics providers are preparing new IT systems, training and stricter valuation procedures, while customs agents report plans to hire additional staff and adjust fee structures. Industry representatives say it remains unclear whether future customs costs will fall on senders or recipients, with a lack of detailed guidance from the Finance Ministry adding to uncertainty.
A further tightening is scheduled for 1 January 2026, when the Customs Department plans to abolish the remaining de minimis threshold, subjecting all imports, regardless of value, to customs review. Officials argue this closes a key competitive gap, as domestic manufacturers must pay value-added tax and various fees, while foreign suppliers have been able to use exemptions to avoid comparable charges. Local businesses welcome the shift, hoping for more stable production sites and a less aggressive price war with Chinese competitors.
Economists caution that the reforms could fuel short-term inflation as bargain goods become more costly and parcels face delays at the border. Yet they also view the move as part of a broader global trend following U.S. trade policy toward Chinese products, signalling that Thailand intends to reduce reliance on cheap imports and strengthen protection for its local economy.