 WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO WT/TPR/M/123/Add.1 
28 January 2004 
 (04-0294) 
Trade Policy Review Body 
12 and 14 November 2003 Original:  English/ 
                 anglais/                  inglés 
  
TRADE POLICY REVIEW 
THAILAND 
Minutes of Meeting
 
Addendum  
Chairperson:  H.E. Mrs. Mary Whelan (Ireland) 
 This document contains the advance writte n questions, and replies provided by Thailand.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
12 et 14 novembre 2003  
EXAMEN DES POLITIQUES COMMERCIALES 
THAÏLANDE 
Compte rendu de la réunion
 
Addendum  
Présidente:  S.E.  Mme Mary Whelan (Irlande) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses 
fournies par la Thaïlande.1 
__________________________________________________________________________________ 
 
Órgano de Examen de las Políticas Comerciales 
12 y 14 de noviembre de 2003  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
TAILANDIA 
Acta de la reunión
 
Addendum  
Presidente:  Excma. Sra. Mary Whelan (Irlanda) 
 
 En el presente documento figuran las pre guntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Tailandia.1 
  
                                                     
 
1 In English only./En anglais seulement./En inglés solamente.  WT/TPR/M/123/Add.1 
 Page 3 
 
 
 ADVANCE WRITTEN QUESTIONS BY MEMBERS1 AND 
REPLIES PROVIDED BY THAILAND 
REPORT BY THE SECRETARIAT SUMMARY
 OBSERVATIONS 
(3) Policies and Measures Affecting Trade and Foreign Investment 
Paragraph 17  
(United States)  Could the representatives of Thailand please provide information on how it is 
determined that an industry w ill receive funding through the Vayupak Fund, as well as a list of 
industries that have received funding thus far? 
Answer:   Vayupak Fund is a 100-billion baht fund, whic h will give a higher choice to investors with 
a guaranteed return of 3 percent per year through its term.  Of the 100 billion baht in capital raised for 
the 10-year flexible fund, 70 billion will come from retail investors and another 30 billion from the 
Ministry of Finance.  The subscription period is  from November 11- 19, 2003, with investments 
focused on listed securities currently held by the ministry, mostly blue-chip companies   This fund is 
aimed at investors seeking higher returns than bank deposits but wary of taking the risks associated 
with the equities market. 
I. ECONOMIC ENVIRONMENT 
(1) Recent Economic Performance 
(2) Main Economic Developments 
(i) Macroeconomic policies Paragraph 9
 
(Japan)   Please specifically indicate the allocated budge t and the contents of the following policies, 
which were newly introduced in FY 2002: (a) Reserve Fund; (b) Village Fund; (c) Farm debt moratorium. Please indicate whether Thailand beli eves that these policies are trade-distorting or not. 
Should they not be considered as trade-distorting,  please provide reasons when referring to the 
specific articles of Agreement on Agriculture. Please al so inform us of why farm debt moratorium is 
needed, when referring to the specific data regar ding the management and indebtedness of farmers. 
Answer:  
Reserve Fund 
The Thai government established a 58-billion-baht  emergency spending program to help jump 
start the economy in the face of a rapidly deteriora ting external environment. The program is aimed 
directly at creating new jobs, enhancing labor  skills and ultimately increasing the country's 
                                                     
 
1 From Australia;  Brazil;  Canada;  China;  Colombia;  the European Commission;  Hong Kong, 
China;  Japan;  New Zealand;  Norway;  Switzerland;  Taiwan;  and the United States. WT/TPR/M/123/Add.1 
Page 4  
 
 competitiveness in the global market. The disbursem ent for the 58 billion baht reserve fund is 36.8% 
or 21.35 billion baht. 
Village Fund 
The Thai Government launched a micro-credit scheme, known as the Village Revolving 
Fund, in July 2001.  The public organization is d esigned to allocate money to offer loans to rural 
villages communities to help support rural development and human security at grass root level.  As a 
local funding source, the Village Fund scheme provi des a revolving fund of 1 million baht to each of 
more than 70,000 villages nationwide.  The amount, not  more than 80,000 million baht, is provided by 
the Government Savings Bank. 
The Village Community Fund has its headquarter s in Bangkok or nearby province.  Members 
of the Fund are allowed to seek loans from the revolvi ng fund for use in devel oping their occupations 
and finding ways to create and increase income.  Th e money may also be used for public services in 
each village community.  The interest  earned from the loans or donati ons to the fund will be used for 
public services of the village or urban community i nvolved.  From July 2001 to February 2003, the 
loan facility was allocated and tr ansferred to 74,286 villages.  
Farm Debt Moratorium 
The debt suspension program for small a nd resource -poor farmers is one of the 
Government’s urgent policies to ease farmers’  debt burden.  The Bank for Agriculture and 
Agricultural Cooperatives (BAAC) has found that farm ers joining the Government’s three-year debt 
suspension program have greater potential for savin g money.  Under the program, about 2.3 million 
farmers, owing the BACC not more than 100,000 baht, are entitled to benefit from the interest 
suspension scheme.  Of this group of farmers, 51 percent will be given a grace period for both interest 
and principal payments for 3 years, while 49 per cent, who did not join the interest suspension 
program, will derive other benefits from the scheme to assist in their production restructuring. (As of 
January 2002, over 2.27 million farmers with about  88.5 billion baht in debt had joined the 
programme.) 
Thailand believes the above measures are not trade distorting but are poverty alleviation and rural 
development measures to strengthen grass-root ec onomy, especially our farmers who are facing heavy 
trade distortion in the world agricultural market today. 
(ii) Structural policies 
Paragraph 16
 
(United States)   When the Royal Thai Government consid ers the privatization of various state 
enterprises, is the question of foreign participati on addressed in a uniform way or is it reviewed on a 
case-by-case basis? 
Answer:   It is reviewed on a case-by-case basis conti ngent upon the provision on  foreign participation 
of the law governing the sector in question. 
Paragraph 17  
(Switzerland)   We would appreciate if the Thai authoriti es could make additional clarifications on the 
term "fewer FDI restrictions on establishment" in their statement that "… non-U.S. foreign investors  WT/TPR/M/123/Add.1 
 Page 5 
 
 
 can also enjoy fewer FDI restrictions on establis hment in Thailand by applying to the BOI for 
investment promotion measures". Would it be a co rrect understanding that they can enjoy the same 
treatment as it is accorded to  U.S. investors according to the 1966 Treaty of Amity and Economic 
Relations between the United States and Thailand (als o of p.30, para.45, positi ve list of exceptions as 
regards national treatment)? If this were not th e case, what are the d ifferences in treatment? 
Answer:   This understanding would be incorrect. Non-US foreign investors cannot enjoy the same 
treatment as US investors under the 1966 Treaty of Amity and Economic Relations. However, 
Foreign investors, both non-US and US, are imposed  with fewer FDI restrictions on establishment of 
businesses under BOI promotion schemes, such as 100 percent ownership for the manufacturing sector and a majority of services under certain BOI conditions, for example, zoning conditions. 
Under BOI promotion, 100 percent foreign owners hip is allowed in the manufacturing sector and 
majority of services while the establishment in othe rs sector must comply with the Foreign Business 
Act B.E. 2542 (1999).  Nevertheless, US invest ors under the 1966 Treaty of Amity and Economic 
Relations between the US and Thailand can enjoy almo st the same treatment as Thai nationals – fewer 
restrictions than what stated in the Foreign Business Act B.E. 2542 (1999). 
(3) Developments in Trade and Foreign Investment 
(4) Foreign Investment Patterns 
(5) Outlook 
II. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
(1) Overview 
(2) General Constitutional and Institutional Framework 
(3) Structure of Trade Policy Formulation 
(i) Executive branches of government Paragraph 7
 
(Japan)   The Secretariat Report states that the Departm ent of Trade Negotiations, within the Ministry 
of Commerce, is mainly responsible for bilateral and multilateral trade negotiations. Please indicate 
how it conducted the decision-making of trade negot iations within the government, when referring to 
discussions among ministries, to consultations for NGOs and to the instructions to the Mission in 
Geneva. Please specifically describe the proce dures carried out by the Department of Trade 
Negotiations for coordinating with the Ministry of  Agriculture and Co-operatives, particularly during 
the agricultural negotiations. 
Answer:   The DTN is acting as a coordinating author ity in formulating Thailand’s positions on 
international trade negotiations at all levels through the Internationa l Economic Policy Committee 
chaired by a Deputy Prime Minister responsible for economic affairs.  Ministers of relevant 
authorities such as Minister of Agriculture and Co-operatives, Minister of  Commerce, Minister of Finance and Minister of Industries etc. are Members of the International Economic Policy Committee.    
The DTN also organizes coordination meetings with the relevant stakeholders both public and private 
at a technical level occasionally in order to exch ange views and formulating initial positions on the WT/TPR/M/123/Add.1 
Page 6  
 
 relevant issues.  Regarding the instructions to th e Mission in Geneva, it is mandated by Minister of 
Commerce upon recommendations of DTN. 
Chart II.1
 
(United States)   Could the representative of Thailand identify the Deputy Prime Ministers who 
oversee the following Ministries and entities: Ministry of Information and Communications 
Technology, Ministry of Public Health, Ministry of Commerce, and Public Relations Department? 
Answer:  DPM Somkid Jatusripitak – Ministry of Commerce 
 DPM Suwit Khunkitti – Ministry of Information and Communications 
Technology 
 DPM Purachai Piumsombun – Ministry of Public Health 
 DPM Wissanu Krea-Ngam – Public Relations Department 
(4) Trade Policy Objectives 
Paragraph 12  
(Chinese Taipei)   According to this paragraph, Thailand is ai ming at integrating itself into the global 
economy, which involves "pro-actively" supporting free trade in the multilateral arena and includes 
"advancing the ASEAN free trade arena". We woul d be grateful if Thailand could elaborate on the 
balance that it expects to maintain between prom oting multilateral and regional trade liberalization. 
Answer:   We give priority to the Multilateral Trade System (MTS) which will complement the 
bilateral trade system, and regional trade arrangeme nts. Under the present complex and volatile global 
environment, Thailand also fully recognizes that tr ying to embrace globalization individually may not 
be in our best interest. We are convinced that FTA s can be an effective building block  for the MTS. 
Under the MTS, we have participated actively in the DDA, with particular interest in areas of 
Agriculture, NAMA, Rules, and DSU, etc. 
(5) Trade Laws and Regulations 
Paragraph 14  
(United States)  Could the Thai representative provide an update on the status of the following 
legislation related to electronic commerce: the El ectronic Funds Transfer Bill, the Computer Crimes 
Bill, the Data Protection Bill, and the Universal Access Bill? 
Answer:   The ICT laws development project is an initiative to facilitate electronic commerce 
activities and promote confidence of foreign investors in Thailand. Six ICT laws  have been developed 
(some enacted, others in the drafting phase). The fo llowing paragraphs give brief descriptions of the 
laws. 
1. Electronic Transactions Law : 
Object and Purpose – To recognize the legal effect of  data messages by treating them as the functional 
equivalent of a writing or evidence in writing with  a view to promote electronic transactions to 
achieve reliability  WT/TPR/M/123/Add.1 
 Page 7 
 
 
 2. Electronic Signatures Law : 
Object and Purpose – To enable reliab ility of the use of electronic signatures 
Current Status – The first two laws, Electronic Tran sactions Law and Electronic Signatures Law, were 
combined into one called "Electronic Transactions  Act B.E. 2544". The Act was drafted as guided by 
the Model Law on Electronic Commerce 1996 and Model law on Electronic Signatures 2001 of the United Nations Commission in International Trade La w (UNCITRAL). It came into enforcement on 
April 3, 2002. 
3. Electronic Fund Transfers Bill
: 
Object and Purpose – To facilitate the electronic fund transfers 
Current Status – The National Electronics a nd Computer Technology Center (NECTEC) in 
conjunction with the Bank of Thailand (BOT) is cu rrently drafting the Electronic Fund Transfer Bill. 
4. Computer Crime Bill:  
Object and Purpose – To criminalize the new type  of the offences in the borderless virtual world 
Current Status – The Bill is currently being considered by the Council of State. 
5. Data Protection Bill : 
Object and Purpose – To protect rights of privacy in the information society by laying down the 
general rule to protect personal data of individuals 
Current Status – The ICT Minister is deliberati ng on the draft provisions before submitting it to the 
Council of Ministers for consideration. 
6. National Information Infrastructure Law  (By the Constitution Law Section 78 ): 
Object and Purpose – To devise an equitable a nd thorough information infrastructure, enable 
universal access by promoting more equitable a nd affordable rights and opportunities to access 
information and communication services.  The pur pose of NII law focuses on reducing Thailand’s 
digital divide. 
Current Status – The Bill has been approved by th e Council of State and is now seeking the approval 
from the Council of Ministers before further submission to the House of Representatives. 
(United States)   Could the Thai representative provide an update on implementation of the digital 
signature law, which was passed in April 2002? 
Answers:   In Thailand, digital signature is being used in  various areas, especially in financial sector 
including banking service and e-government initiativ es. However, Electronic Transaction Act 2001 
does not specify the technology to be used as electro nic signature. As a result, people can use letters, 
characters, numbers, sounds or any other symbols cr eated in electronic form and affixed to data 
messages in order to establish the association betw een a person and a data message. (Please see the 
definition of electronic signature in Section 4.) 
In ETA Section 26, an electronic signature is cons idered to be a reliable electronic signature if it 
meets the requirements in this section. Using dig ital signature is considered as reliable electronic 
signature because its qualifications meet those requi rements and will obtain some benefits from legal 
presumption.  WT/TPR/M/123/Add.1 
Page 8  
 
 Nowadays, there are two private CAs in Thailand,  namely, ThaiDigitalID (www.thaidigitalid.com) 
and Acerts (www.acerts.com). Their major customers are financial institutions. Furthermore, there are 
many companies that are preparing themselves to be private CAs in the near future, such as CAT 
Telecom Public Company Limited, TOT Corporation and PTT. 
For public sector, Government Information Technolog y Service (GITS), a unit in National Electronics 
and Computer Technology Center, provides digital si gnature applications for governmental agencies 
only. GITS has officially offered their service for almost two years.  
(6) Trade Agreements and Arrangements 
(ii) Preferential, regional, and bilateral arrangements 
Paragraph 24
 
(Japan)  The Secretariat Report states that seven items , including copra, coffee, cut flowers, and 
potatoes, were still excluded on grounds of sensitivity . Please provide the specific reason why these 
seven items, including those agric ultural products exempted from the Common Effective Preferential 
Tariff (CEPT) of the ASEAN Free-Trade Area (AFTA), are regarded as sensitive when quoting the relevant statistics.  
Answer:   Under the CEPT scheme, Thailand has alr eady transferred these seven items from the 
sensitive list to the inclusion list in 2003, after whic h tariffs of these 7 pro ducts will be 5% by 2010. 
Paragraph 35
 
(Japan)  Regarding all the FTA negotiations with Thailand and other partner countries, such as 
China, India, Australia, the U.S., Peru, Mexico, Ne w Zealand, Korea, etc., please indicate the status 
of progress in each negotiation, when referring to the conformity of each FTA negotiation with the 
WTO agreements. 
Answer:   With regards our FTA negotiations, the latest  progress is that we have signed a framework 
agreement with Bahrain, India, and Peru. In additi on, we are currently in negotiations with Australia, 
which is expected to be finalized by the first half of 2004. We have made a statement of intention to 
launch FTA negotiations in 2004. ASEAN-China and ASEAN-India framework agreements have 
been endorsed at high-level summits in both forum. We intend to undertake a joint study on a possible 
FTA between Thailand and New Zealand.  
(Japan)   On trade in services, national treatment is currently granted to US citizens and entities 
through the Treaty of Amity and Economic Relati ons between the Kingdom of the Thailand and the 
United States of America. This measure is a part of the Thailand’s MFN exemption list, having an 
intended duration of 10 years from th e entry-into-force of the GATS.  
Please provide information on the current situa tions and future plans in view of Thailand’s 
preparation of the scheduled expiration of the above intended duration.  
Please explain whether the Thailand is thinking of abolishing its bilateral agreements with the U.S. 
Answer:   We are discussing this matter with our U.S. counterpart.  WT/TPR/M/123/Add.1 
 Page 9 
 
 
 (United States)   In addition to the 626 items for which tariffs  have already been eliminated, what will 
be the process by which other tariffs will be e liminated by 2010? Is this agreement with Bahrain 
available to the public? If so, will Thailand provide us with a copy? 
Answer:   Thailand and Bahrain agreed in principle to reduce the tariff rates to 0-3 percent of 
626 products in the Early Harvest list. The ta riff rates of 419 items were eliminated on 
December 29, 2003, while the tariff rates of the re maining 207 items will be reduced to 3 percent in 
2005. By 2005, tariff for 40 percent of the remaini ng items will be eliminated. Consequently, by 2007, 
another 40 percent of the remaining tariff items w ill be further eliminated. By 2010, all items except 
sensitive products will have their tariffs eliminated. When the Agreement is finalized, a copy of the 
Agreement will be notified to the WTO subject to  the final outcomes of discussions on RTA at the 
Negotiating Group on Rules. 
(7) Trade Disputes and Consultations 
(8) Foreign Investment Regime 
(ii) Basic framework Paragraph 42
 
(Canada)  What is the rationale for setting the mini mum capital requirement for unrestricted 
businesses at B 2 million, and in the case of restri cted businesses at 25% of the total three-year 
average expected earnings, but not less than B 3 million? Are these limits reviewed or adjusted 
annually? 
Answer:   The 2 million Baht minimum capital requirement  for unrestricted businesses is according to 
the law. As for the case of restricted businesses, the minimum capital requirement is set according to 
the size of the businesses. At the moment, we ha ve no plan to review these requirements. 
Paragraph 43  
(Canada)  Canada notes that rejections of List 3 app lications may be appealed. Are those under 
List 2 similarly subjected to an appeal? If not, why not? 
Answer:   The decision to reject a List 2 application is made by the Minister of Commerce with the 
approval of the Council of Ministers. Therefore, it cannot be appealed. 
(Switzerland)  The Swiss Government welcomes the approac h of the Thai authorities relating to 
factors taken into account in assessing license applications for forei gn investors. However, wouldn't 
there be a possibility to create an even more st able and sound economic and legal environment 
leading to a better predictability for (foreign) investors if the criteria us ed to assess license 
applications were defined in laws and regulations in order to avoi d abuse of administrative discretion 
in their application? 
Answer:   We have never failed to cr eate a stable and sound econom ic and legal environment for 
investors. However, we are not convinced that administrative discretion goes beyond laws and regulations that are in force. WT/TPR/M/123/Add.1 
Page 10  
 
 Paragraph 45
 
(Chinese Taipei)   As indicated in the report, the Foreign Business Act does not apply where an 
international treaty requires Thailand to provide national treatment to foreign investors. Such is the 
case, for example, for US invest ors under the 1966 Treaty of Amit y and Economic Relations between 
the United States and Thailand. Thailand’s MFN Exemptions List (GATS/EL/85, 15/04/1994) 
contains the measure granting only American citiz ens and entities national treatment with respect to 
services sectors stipulated in the relevant articles of the above-mentioned Treaty, subject to a grace-
period of ten years, which expires at the end of 2004. It would be appreciated if Thailand could explain how this measure will be dealt with fo llowing the completion of this ten-year period. 
Answer:   We are discussing this matter with our U.S. counterpart. 
Paragraph 48
 
(Switzerland)   It is mentioned that Thailand is taking st eps to ratify membership  of the International 
Centre for the Settlement of Investment Disputes Be tween States and Nationals of Other States (the 
ICSID Convention), signed in 1985. It might be helpful to learn more about the time frame and about 
how concrete these steps towards ratification are. 
Answer:   The Ministry of Finance is engaged in consultative dialogue with relevant government 
agencies. The next step would be to provide lega l status for ICSID by incorporating it into the 
national law and subsequently proposing the draft law to Parliament for approval. 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) Introduction 
Paragraph 2  
(Chinese Taipei)   A quarter of all Thailand’s tariff lines are unbound and its bound rates often 
greatly exceed applied MFN rates, t hus affording the authorities consid erable scope for raising tariffs 
at any time. Could Thailand please describe the circumstances in which it might find it necessary to 
raise tariffs? 
Answer:   Normally, we would not raise tariffs. Only in exceptional circumstances such as during the 
financial crisis, would few tariff lines be raised. Th ese tariff lines are usually confined to luxury items. 
Nevertheless, this would still al ways be under the bound rate. 
(2) Measures Directly Affecting Imports 
(i) Customs procedures Paragraph 10
 
(United States)   Could the representative of Thailand provide information regarding the working 
hours for the inspection and clearance of imports at Thai airports and ports? 
Answer:   Customs operation at the airport is open 24  hours a day for inspection and clearance while 
the seaport is open at the request of importers outside normal working hours.  WT/TPR/M/123/Add.1 
 Page 11 
 
 
 (United States)   We understand that your government is c onsidering draft legislation to facilitate 
electronic signature use for customs clearance documents. Could the representative of Thailand 
provide any information regarding the status of this draft bill? 
Answer:   With regards to electronic signature for cu stoms clearance, relevant agencies including the 
Customs Department are in the process of consid ering how the mechanisms of the law can be 
effectively applied. It is foreseen that the early st ages of implementation of this law can commence in 
the year 2004. 
(United States)   Could Thailand please explain further its  efforts to adopt an all e-based trading 
system? Specifically, what obstacles prevent Tha iland from adopting a 100% EDI for customs 
declarations? In addition, we understand that, even  in instances where EDI has been adopted, many 
procedures still require paper, even when that me ans printing out a computer screen and signing it. 
Could Thailand comment on this proc ess and any plans to improve it? 
Answer:   We cannot implement EDI for 100 percent of all transactions due to the fact that a great 
number of SMEs do not yet have the capacity to implement this system.   
Paragraph 11  
(Switzerland)   The report indicates that Thailand is cu rrently not a contracting party to the Kyoto 
Convention, and that the Customs Department consid ers the possibility to become a party to the said 
Convention. Could Thailand indicate within wh ich time frame the Customs Department will have 
examined all the necessary elements to take a decision? 
Answer:   Thailand is in the process of joining the Ky oto convention, however there are still several 
conditions which we still have to comply and which members have yet to endorse. According to the 
accession of revised Kyoto Convention, given the fact that Thailand is not a contracting party to the 
existing Kyoto Convention and the revised Conventio n is not yet in effect, Thailand cannot accede to 
the Convention according to the Protocol for the amendment of the existing Convention. However, 
most of the current custom procedures applied for cargo clearance are already consistent with the 
general context of revised Kyoto Convention. 
Paragraph 12  
(United States)   Agricultural industry sources report t hat the applications for food product 
registration require detailed and often proprietary business information about the manufacturing 
process and composition of the food. Is Thailand w illing to revise the application for registration to 
be less invasive? 
Answer:   Thailand has designated 2004 as the "Food Sa fety Year". For food products, safety 
requirements are needed to protect the well-being and health of our consumers. These requirements 
are consistent with WTO principles including that of National Treatment.  
Paragraph 13  
(United States)   The Secretariat’s Report states Thailand am ended two laws, the General Provision of 
the Customs Tariff Decree B.E. 2530 (1987) and the Customs Act (No. 17) B.E. 2543 (2000) with a 
view to implementing the WTO Agreement on Custom s Valuation. Can the representative of Thailand 
explain what is included in the first law and provide a copy? Thailand recently notified the second 
law along with the Finance Ministerial Regulations No. 132 (B.E.2543) to the WTO WT/TPR/M/123/Add.1 
Page 12  
 
 (G/VAL/N/1/THA/1). The U.S. has various con cerns about the notification and posed a series of 
questions to Thailand (G/VAL/W/128). Could the representative of Thailand advise when we can 
expect a reply to these questions? Could the repr esentative of Thailand also advise whether there are 
any other laws or regulations that pertain to th e implementation of the WTO Valuation Agreement? If 
so, could you please provide us with copies? 
Answer:  We would like to thank the US for the concer ns and questions posted to Thailand in the 
document G/VAL/W/128; however, such concerns a nd questions have been automatically replied 
within the context of Thailand’s notificati on on Customs Valuation Checklist of Issues, 
G/VAL/N/2/THA/1, dated 6 October 2003.   
(United States)   During the seminar held in September,  the Customs Department acknowledged that 
some customs officials do not understand the WTO valuation methodology and that implementation 
procedures are unclear, but Customs is committe d to addressing theses problems soon. We would 
appreciate it if the representative of Thailand coul d explain how these problems will be resolved. 
Answer:   The difficulties experienced by the Custom s Department in implementing WTO Valuation 
Agreement are due to lack of skills and experiences es pecially in the first year of the implementation. 
Additionally, for the suspected invoices, the lack of sufficient valuation database caused some 
difficulties in valuation assessment or determination.  We are currently dealing with this through 
capacity-building, and training. Admittedly, this e ffort would be greatly enhanced through greater 
technical assistance. For example, we received assistance from AusAID in the form of customs 
valuation training, the course also included a wide ra nge of activities such as study tour to Australia, 
dispatching expert adviser to the Thai Custom s Department, related workshops on compliance and 
valuation management etc.  
(United States)   Could Thailand provide specific examp les of how the "clear customs appeal 
procedures" operate, and what entities are able to  utilize the appeal procedures, e.g., the express 
shipping company, the recipient, or a frequent or infrequent shipper? 
Answer:   The Customs Act. No. 17 B.E. 2543 provides importers and exporters the right to appeal the 
tariff appraisal decisions made by the authorities with the Appeals Committee determined by the 
Director General of the Customs Department within 30 days of the appraisal.  For cases involving the 
importation or exportation in provinces other than  Bangkok, the appeal may be launched at the 
customs checkpoint or with regional customs offices  in accordance with the guidelines determined by 
the Director General of the Customs Department.  The duration of the appeals process depends on the completeness of the data, and the readiness of th e members of the appeals committee namely, the 
director general of the Customs Department, as Chairman of the Committee, representatives from the 
Ministry of Finance, Council of State, and no less than 5, but no more than 7, experts from Customs 
Department, Civil Service Commission, Ministry of Ju stice, Office of the Attorney General, Revenue 
Department, Excise Department and National Police Office that may be designated by the Director 
General of the Customs Department. 
Paragraph 14
 
(United States)   U.S. exporters have reported experiencing problems with Thailand’s customs 
valuation for fruits. There have been reports of un even implementation, with custom officials using 
special reference prices to determine the value of  imported goods rather than the transaction value. 
On numerous occasions the U.S. government has enc ouraged Thailand to disc ontinue this practice, 
which is inconsistent with the terms of the Cust oms Valuation Agreement implemented in March 2000, 
however the agricultural trade continues to report problems.  WT/TPR/M/123/Add.1 
 Page 13 
 
 
 (United States)   What steps is Thailand taking to ensu re that the terms of Customs Valuation 
Agreement are being followed in customs valuatio n for apples and other fruits? What efforts is 
Thailand taking to address imports of smuggled apples, which have not paid import duties? 
Answer:   Thailand has always been in compliance with the WTO Transac tion Value methodology. 
To date, the Thai Customs Department has abolis hed the use of reference price in determining 
transaction value. 
Paragraph 15  
(Canada)   Would Thailand please expla in further the number of levels of "internal appeals", the 
process and procedures an importer must follow to file an appeal, as well the amount of time it will 
take for a decision to be rendered? 
Answer:   Importers not satisfied with decisions of Customs authorities concerning valuation, tariff 
classification can appeal to the Customs Appeal Committee. The Appeal Committee's decision shall 
become final. However, the appellant can appeal the Appeal Committee's decision within 30 days from the date of notification of the decision. Presen tly, there is no definite prescribed time limit for 
the rendering of a decision. Decision processes are based on the completeness of evidence and 
documents submitted by the appealing party. 
(Canada)   Would Thailand also explain what is meant  by the last sentence of paragraph 15, where it 
is stated that the matter may be ra ised in the Tax Court " if the St ate Attorney consider that there is 
sufficient evidence to warrant consideration of the case"? We note that Article 11 of the Agreement on 
Customs Valuation provides importers with a right of  appeal, without penalty, to a judicial authority. 
It also allows for an appeal or administrative review within the Cust oms administration, if so desired. 
In this light, the last sentence of paragraph 15 is  problematic, as it appears to indicate that an 
importer can file an appeal to the Tax Court onl y if "the State Attorney considers that there is 
sufficient evidence to warrant consideration of the ca se". This is clearly contrary to Article 10 of the 
Agreement on Customs Valuation which grants an unfettered right of appeal to the importer. We would note that it is good practice for the Customs administrations that make administrative decisions 
which may impact adversely on their clients or cu stomers to allow those who believe that they have 
been aggrieved to appeal those administrative decisi ons.  It allows the aggrieved party to be heard 
and also, importantly, serves to demonstrate that th e process is not arbitrary and that a Customs 
valuation determination can be challenged.  An  admission that Customs can make a mistake and, 
more importantly, is willing to correct itself speaks  to the issue of fairness and transparency and 
indicates that there is a provision for an appeal to the judiciary. 
Answer:   We thank Canada for raising this question rega rding action of a state attorney in the appeals 
procedures. We are pleased to respond to Canada that no reference is made in Section 112 of the 
Customs Act, regarding the intervention of a state a ttorney, other than the right to appeal which is 
recognized in the said legislation. 
Paragraphs 17-18
 
(United States)   Could the representative of Thailand provide an update on the consideration of non-
preferential rules of origin by the committee and subcommittee under the Cu stoms Department? Do 
these committees include private sector representati ves? Will draft regulati ons be available for 
comment? Is there any timetable for completion of this effort? WT/TPR/M/123/Add.1 
Page 14  
 
 (Canada)   If Thailand "does not have specific laws, judi cial decisions or administrative rulings of 
general applications relating to non-preferential rules of origin", why would a Committee and a Sub-
committee on Rules of Origin, under the Customs Department, need to "review the progress of 
harmonization, improvement, and simplification of  non-preferential rules of origin"? 
(Chinese Taipei)   As indicated in the Report, Thailand do es not have specific laws, judicial decisions 
or administrative rulings of general application rel ating to non-preferential rules of origin. Thus, a 
Committee and a Subcommittee on Rules of Origin , under the Customs Department, has been 
established to review the progress of harmoniza tion, improvement and simplification of non-
preferential rules of origin. We woul d appreciate knowing the following: 
 - whether the execution of the regime of non- preferential rules of origin in Thailand is 
solely at the discretion of the said Committee and Subcommittee on Rules of Origin 
under the Customs Department; 
 - how the Customs Department performs its duty under the present regime without 
reference or adherence to spec ific laws, judicial decisions or administrative rulings 
of general application relating to non-preferential rules of origin; and  
 - how Thailand can ensure that execution of the regime of non-preferential rules of 
origin in such a manner would be in full conformity with the WTO Agreements. 
Answer:   At present, Thailand adheres only to the certifi cation of origin presented by importers.   The 
main objective of the Committee and Subcommittee under the Customs Department is to formulate 
Thailand’s position in the negotiations on Harmon ization Work Programme for Non-Preferential 
Rules of Origin in the WTO.   These Committees al so include representatives from private sectors in 
order to be certain that all views are reflected when formulating the position.  The Department of 
Customs is expecting to consider setting up non-prefer ential rules of origin after the conclusion of the 
negotiations in the WTO.   
(ii) Tariffs 
Paragraph 19
 
(China)  The average applied MFN tariff rate of Tha iland has been reduced  since last review. 
However, Thailand’s import tariffs on agricultura l products and food still remain the highest among 
ASEAN countries. At present import of agricultura l products, especially processed food, are subject 
to duties up to 25.4%, and the tariff rates on many  fresh and processed food products are as high as 
30% to 40%. Does Thailand have any plan to re duce its tariff rates on agricultural products, 
especially food? 
Answer:   The average high tariff rates on our agricultura l products are necessary to improve the level 
playing field as the major developed countries are sti ll hesitant to eliminate their export subsidies and 
trade-distorting domestic supports.   The agreement on substantial agricultural trade reforms under the 
DDA will definitely make it possible for Thailand to  reduce any tariff rates on agricultural product. 
(New Zealand)   The Secretariat report notes that the Thai tariff is complex, with a multiplicity of 
rates applied to each tariff line and a high proportio n of non-ad valorem ta riff lines. Does Thailand 
have any plans to simplify the operation of its tariff?  WT/TPR/M/123/Add.1 
 Page 15 
 
 
 Answer:   Thailand participates actively in the NAMA a nd agriculture negotiati ons, we have made it 
clear that we support simplification of the tariff structure by transforming all non-ad valorem to ad valorem rates.   On the issue of a high proportio n of non ad valorem tariff lines, it is the result of 
the change of HS 1996 to HS 2002 which affects in the increased proportion of tariff lines with non-
ad valorem duties to the total, not that we ha ve increased the utilization of non-ad valorem. 
(Switzerland)   Thailand has four distinct sets of duty rat es. According to the report applied (adjusted) 
rates may be increased above WTO bound  rates. The fact that the im porter may ask to be taxed at 
WTO bound rates if the imports originate in a WTO Member country is a source of concern and of 
potential inconsistency with WTO commitments of  Thailand, as for WTO Members bound rates 
represent the absolute maximum they can levy on impor ts from WTO Members. In order to comply 
with Article II:1 a and b GATT, how does Thailand ensure that (in the case of applied rates being 
above bound rates) only bound duties at the maximum will be levied on imports from WTO Members 
without it be necessary for the importer to ask to be taxed at WTO bound rates? 
Answer:   In cases where applied rates are higher than bound WTO rates, the importers who are WTO 
members are subject to the bound rate. 
Paragraph 22
 
(Japan)  There is a high degree of unpredictability because bound tariff lines cover only about 70% 
and also because the bound rates themselves are consid erably in excess of the applied rates. We thus 
request Thailand to increase the number of its bound tariff lines. Japan also requests that transport 
equipment, one of our concerns,  the tariff line of which is not  bound, be bound through future 
negotiations. Regarding these matters, please provid e the views of the Government of Thailand. 
(New Zealand)  Similarly, Thailand has a high proporti on of unbound tariff lines (26.1%), which 
creates a lack of certainty or predictability for importers and investors. Does Thailand have any plans 
to increase the scope of its binding coverage? 
(New Zealand)   Could Thailand elaborate on the situation behind the statement in the Secretariat 
report that a sizeable number of applied rates exceed bound rates?  Why is this the case?  What steps 
will Thailand take to reduce to th eir respective bound rates the numb er of applied rates that currently 
exceed WTO bindings? 
(Switzerland)   Which measures does Thailand intend to take to improve the predictability of its tariff? 
Answer:   Thailand participates actively in the NAMA negotiations, and our de legation has made it 
clear that we support 100 percent binding of all tariff lines as has been done to agricultural products.  
(United States)   Thailand applies significantly higher tariffs on agricultura l products than non-
agricultural goods. For instance, Thailand’s bound rate for the import of fresh or chilled meat 
products ranges from 30 to 50 percent. Many fruits and nuts are subject to tariffs ranging from 30 to 
50 percent. Often, Thailand’s bound rates for agric ultural products exceed the applied MFN rates, 
and the MFN rate applied to imports from WTO me mber nations is significantly higher than the 
eventual 5 percent preferential rate accorded to AS EAN member nations as part of the ASEAN Free 
Trade Area (AFTA) under the Common Effective P referential Tariff (CEPT) scheme. Is Thailand 
taking any steps to reconcile these differences? Does T hailand plan to implem ent the plan approved 
by the Thai Cabinet on July 29, which would low er tariffs on 464 agricultural imports? If so, will 
Thailand please provide a list of products and the lower import tariffs the plan would institute? WT/TPR/M/123/Add.1 
Page 16  
 
 Answer:   We have reduced tariff on 464 agriculture products since the 4
th October 2003 according to 
cabinet instruction issued on 29 July 2003.  Th e list of products can be access from the customs 
department website, www.customs.go.th  
Paragraph 24  
(Canada)   We note that non-ad valorem duties account for 23% of all Thai tariff lines and that ad 
valorem equivalents (AVEs) have been provided for approximately 2/3 of these lines. What is 
Thailand’s position with respect to permanently converting non-ad valorem duties to ad valorem 
rates? Does the absence of AVEs reflect an absence of imports for those tariff lines (footnote 14)? 
Answer:   In the area of NAMA and Agriculture ne gotiations under the DDA, we maintain our 
position on converting all non- ad valorem  to ad valorem  rates on a permanent basis. 
Paragraph 26  
(Colombia)   We understand that Thailand applies surchar ges on out-of-quota maize (corn) and fish 
meal. We should like to have more in formation on the surcharges applied. 
(Japan)   The Secretariat Report states that a surcharge  is levied on the out-of quota imports of corn 
and certain fish meals. Regarding such surcharge, pl ease indicate in detail th e scheme for every item, 
by quoting the domestic laws and regulati ons on which the surcharge is based. 
(Switzerland)   The report indicates that Thailand impo ses product specific surcharges. Please give an 
exhaustive list of the products affected by this  measure (with HS numbers and product description and 
rates of the surcharges) as well as the reasons to take such a measure and its WTO justification. 
Answer:   We have provided details as indicated in our Schedule of Commitment LXXIX.  
Paragraph 27  
(Colombia)  Tariff quotas are applied to many products produced by Colombia, such as milk and 
cream, potatoes, onions and onion seeds, garlic, coc onuts, coffee, peppers, (maize) corn, rice, soya 
beans, soyabean oil, palm oil, coconut oil, cane  sugar, instant coffee, soyabean cake, unmanufactured 
tobacco, tobacco leaves, and raw silk. We should li ke to know how long this scheme will remain in 
place. It should be noted that the out-of-quota tar iffs are too high and practically prevent entry into 
the Thai market. 
(Japan)  According to Table III-1 of the Secretariat Repor t, the rate of the non-ad valorem tariffs 
(percentage of all tariff lines) has been increasing i. e. from 21.5% in 1999 to 23.0% in 2003. Please 
indicate the specific items (at HS 4 digit l evel) which have benefited from newly-applied non-ad 
valorem tariffs between 1996 and 2003. What are the reasons for such actions? Please respond by 
indicating the number of all tariff lines, and tariff lines of non-ad valorem tariffs. 
Answer:   This was caused by the change in the harmonization system from the year 1996 to 2002, 
which incorporated fewer tariff lines, re sulting in the higher average percentage. 
(Japan)   Regarding the minimum access commitments on longans and copra, please explain why the 
figure zero appears in the "actual imports". Re garding the tariff quotas of: milk and cream, not 
concentrated, not containing added sugar, pepper, drie d; maize for feedstuff; soya bean oil; palm oil; 
coconut oil; and cane or beet sugar, please explain  for each case why th e fill-rates are very low. 
Regarding the tariff quotas of garlic, fresh or chilled, whether or not in powder; coconut, fresh or  WT/TPR/M/123/Add.1 
 Page 17 
 
 
 dried; and rice, please explain for each case why a low percentage of tariff quotas is used. For all 
these tariff quota items, please indicate the act ual out of quota imports between 2000 and 2002. 
(United States)   Restrictive tariff rate quotas are applie d to 23 agricultural imports (e.g., milk and 
cream, potatoes, rice, soybean oil). In general, both the in-quota and out-quota tariff rates are quite 
high. For example, in the case of fresh potatoes,  the tariff rates for in-quota and out-quota imports 
are 27 percent and 85 percent, respectively. The tar iff has remained high despite Thailand committing 
in November 2001 to reduce the applied tariff from  30 percent to 15 percent. When does Thailand 
intend to reduce the applied tariff from 30 to 15 percent as was committed in 2001? Will Thailand 
provide a schedule for TRQ allocations? 
Answer:   It is necessary for Thailand to maintain TR Q in certain products in order to protect our 
agriculture from highly subsidized imports for the time being.  Thailand is committed to faithfully 
implement its obligations under the Agreement on Agri culture in full.  As a member of the Cairns 
Group, Thailand has made the proposal in the agri culture negotiations under the DDA to substantially 
increase TRQ volume as well as reduce out-quota tariff rates particularly tariff peaks. With regards to the schedule for TRQ allocations, we have already notified the Committee on Agriculture. 
Paragraph 30
 
(United States)   In the aftermath of the financial crisis, in October 1997, the RTG raised tariffs on 
passenger cars and sport utility vehicles to 80 p ercent, up from 42 percent and 68 percent, and 
promised to roll back these tariffs on January 1, 20 00. Unfortunately, these tariffs remain in place. 
Given Thailand’s economic recovery, we would enc ourage a reduction in these tariffs to pre-crisis 
levels as an initial step towards liberalization. 
Answer:   Thailand has increased tariff, for the gove rnment revenue purpose, on automobiles, 
including passenger cars and utility vehicles into th e level of bound rates since the financial crisis 
period. Although the financial crisis  situation had been relieved gradua lly, we are of the view that to 
reduce the tariff in this particular sector will de pend on the result of the Doha Round negotiations. 
Paragraph 40  
(Switzerland)   Please provide the list of products (HS num bers, product description and rates) subject 
to different rates according to th eir end-use. Please elaborate on the provisions regarding end-use of 
these products. 
Answer:   The provisions of end-use tariff reduction has been stipulated in the Notification of the 
Ministry of Finance Re: Reduction of the Rate of  Duty and Exemption duty of Any goods according 
to Section 12 of the Customs Tariff Decree B.E.  2530, dated 28 December 2001. The tariff reduction 
is applied to some certain raw materials mostly for producing electrical machineries and equipments, 
vehicle and parts, and chemical products. For more information please visit www.customs.go.th . 
Paragraph 41  
(New Zealand)   New Zealand welcomes Thailand’s efforts to unilaterally reduce tariffs since the 
previous Trade Policy review. Are these reductions part of a broader strategy in preparation for 
meeting the APEC Bogor Goals of free trade and investment by 2020? Can Thailand explain the 
rationale behind the decision to increase tariffs on automobiles and motorcycles, meat of bovine animals, oil cake, and packaging material? WT/TPR/M/123/Add.1 
Page 18  
 
 Answer:   Thailand increased tariffs on automobiles and motorcycles at the time of the 1997 financial 
crisis for the purpose of increasing government revenue. 
(iii) Non-tariff border measures 
Paragraph 46
 
(Canada)  Canada notes that there are no import prohibitions or licensing requirements with respect 
to products derived through biotech nology. We would be interested in any information that can be 
provided on this matter. 
Answer:   Thailand does not currently have policies for the commercial production of GMO products, 
therefore, importation of GMO seeds and grains are currently prohibited, except for maize and soybean where grains are permissible only for food and feed production and related industries.  
(Colombia)  Import licences are required for a large num ber of Colombian products potentially 
exportable to the Thai market: yellowfin tunas , milk and cream, including in powdered form, 
potatoes, onions (Allium cepa) and onion seeds, coffee, tea, peppers, (maize) corn, rice, copra, soya, soya-bean oil and its fractions, palm oil and its frac tions, coconut oil, fish meal, residues from the 
extraction of soya-bean oil, marble, gasolin e, kerosene, high-speed diesel, naphtha, liquefied 
petroleum gas (LPG), potassium permanganate, clenbut erol, salbutamol, caffeine, plastic waste, sawn 
or trimmed wood, raw silk, silk yarn, pita fibre ( fique), articles of apparel, sacks of pita fibre (fique) 
or textile material, stones for monuments, used e ngines, chainsaws, passenger cars, coin-operated 
amusement devices, original sculptures of any material, coated ceramics, gold, medicines and 
pharmaceuticals. The import licensing system appea rs to be complex. Does Thailand plan to 
eliminate import licences? 
(Japan)  The Secretariat Report states that infant industry protection has been the main objective 
behind import restrictions since the 1970’s. Please i ndicate the definition of "infant industry" in 
Thailand. 
(Switzerland)   In some cases the conditions attached to import licensing appear to be equivalent to 
quantitative restrictions. In addition the system of im port licensing tends to be opaque and complex. 
As Article XI GATT stipulates a general prohibiti on of quantitative restrictions and the Agreement on 
import licensing (Article 1, para. 3) requires that the rules be neutral in application and administered 
in a fair and equitable manner, which steps does Tha iland intend to take to comply with the relevant 
WTO provisions? 
Answer:   We are in the process of revising the list of products subject to import licensing including 
marbles and passenger cars. 
Paragraph 47
 
(United States)   The United States encourages the Thai go vernment to review the full range of its 
policies affecting imported products in consid ering policy changes. These policies can have a real 
effect on our exporters. For example, U.S. wine exporters, who face high tariffs and excise taxes, note that RTG requirements for import permits, certifica tion, and label registration add extra costs. 
Answer:   Excise tax is applied uniformly for domestic and imported wine products.  WT/TPR/M/123/Add.1 
 Page 19 
 
 
 Paragraph 49  
(Switzerland)   To prevent the outbreak of BSE (Bovin e Spongiform Encephalopathy) in Thailand and 
for food safety purposes, animal carcasses and produc ts thereof from countries where the disease 
exists are not admissible into Thailand. 
 a) Does this import ban include live animals, embryo and semen? 
 b) On what risk evaluation does this decision base? 
 c) What are the justifications for these measures on issues where the import ban of 
Thailand is going further that the recomme ndations of the competent international 
health organization (OIE World Organisation for Animal Health)? 
Answer:   With regards to the issue of BSE, we would like to clarify that we have imposed a ban on 
live animals from BSE affected countries, while for importation of semen and embryo, we would 
adhere to guidelines suggested by the international or ganization with relevant expertise on this matter, 
namely the OIE. 
Furthermore, risk evaluation decisions are based on OIE recommendations.  
Paragraph 50  
(United States)   The United States remains concerned with  the regulations for meat import permits, 
and we have received complaints that the adminis tration seems to be arbitrary and quantitatively 
restricting rather than on an automatic basis. This is  most often the case for sensitive items, and the 
scientific basis for the policy is unclear. 
(United States)   Meat inspection fees for uncooked meat  and offal are higher for imported product 
than domestic product. This would appear to be in violation of the WTO principle of national 
treatment. Will Thailand remedy this discrepancy? 
(United States)   Is Thailand addressing the discrepancy between the fees for import permits for 
uncooked meat and offal verse the fees for domestic product? 
Answer:   Inspection fees are charged according to  the cost of services rendered and does not 
discriminate between local and imported products.  However, for offal, we have already reduced 
inspection fees from 20 Baht/Kg. to 5Baht/kg.  
Paragraph 51  
(Switzerland)  What is the reason why Thailand has not yet complied with the obligation to notify its 
relevant import licensing legislation and to provide replies to the import licensing questionnaire under Articles 1.4(a), 8.2(b) and 7.3 of the Ag reement on import licensing? When does Thailand 
intend to fulfill its obligations? 
(United States)   The United States encourages Thailand to notify its relevant licen sing legislation and 
provide replies to the Import Licensing Questionnaire under Articles 1.4(a), 8.2(b) and 7.3 of the Agreement. Thailand’s complian ce with its WTO obligation would greatly enhance the transparency 
of Thailand’s import licensing system. 
Answer:   We are in the process of revising our import licensing list. WT/TPR/M/123/Add.1 
Page 20  
 
 (iv) Contingency measures 
Paragraph 53
 
(Hong Kong, China)  We note from the Secretariat Report t hat the safeguard measure involving the 
imposition of temporary surcharge on steel imports was terminated in July 2002 and replaced by AD 
measures. In the same year, the number of AD in itiations went up to 21, involving mainly steel 
products and a total of 16 economies. We should be grateful to know whether all the new AD cases 
against steel products were meant to replace the safeguard measure previously in force. Also, we 
should be grateful if Thailand could explain the rea sons for replacing the safeguard measure by AD 
duties, and why it considers it appropriate to do so. 
(Chinese Taipei)   As indicated in the Report [p.77], Thailand applied surcharges to some steel 
products from 29 January 2002. The su rcharges were imposed for six months, and ranged from 5% to 
25% on the c.i.f. prices of imports. Please would Thailand advise: 
 i) whether it has notified the measures to the WTO, in line with the Agreement on 
Safeguards and, if not, when it intends to notify; and  
 ii) whether the imposition of these tem porary surcharges was based simply on 
administrative procedures or on the results of an investigation. 
According to Article 2 of the Agreement on Safe guards, no safeguard actio n against imports from 
another Member can be taken unless certain conditions are met, e.g. increased imports, serious injury 
or threat thereof, and causation. Could Thail and please confirm whether its above-mentioned 
safeguard measure did, in fact, sa tisfy all the relevant conditions? 
Furthermore, in July 2002, the above-mentione d measure was terminated and replaced by anti-
dumping measures. Could Thailand please confir m whether the replacement by anti-dumping 
measures was legitimate, i.e. following a legally s tipulated investigation process, and, if so, what was 
the process? 
Paragraphs 54-55  
(Chinese Taipei)   The safeguard measure against steel imports was terminated in July 2002 and 
replaced by anti-dumping duties on six products from 12 WTO Members since May 2003. We also 
note from the report that the Committee on Dumpin g and Subsidy published a Notice on 16 July 2003, 
in which a special measure similar to tariff-rate quota was applied specifically  on flat hot-rolled steel. 
According to the notice, import within quota can be exempted from anti-dumping duties while import 
out of quota is still subject to anti-dumping duties.  The exempted quota for the first year is 47 MTs, 
which will gradually be reduced to 1 MT for th e fifth year. We would like to ask Thailand the 
following questions: 
 i) What is the rationale for imposing such  a phase-out tariff quota measure? What are 
the laws or rules on which the quota system is based? Does the me asure comply with 
the Anti-dumping Agreement? 
 ii) Furthermore, does Thailand assume t hat the injury to its domestic industry will 
increase during the implementation period and, if not, can it please explain how its 
measure is consistent with WTO rules?  WT/TPR/M/123/Add.1 
 Page 21 
 
 
  iii) Providing exemption to the original dump ing order would seem to indicate that the 
effect of the original remedy, in the form of anti-dumping duty, has exceeded the 
necessity to remove the injury to  the domestic industry. If this is the case, why does 
Thailand not consider adopting the lesser-duty pr inciple, as provided for in Article 9 
of the Anti-dumping Agreement? 
 iv) Could Thailand clarify whether it has no tified that anti-dumping measure to the WTO 
in accordance with the Anti-dumping Agreem ent and, if not, when does it intend to 
notify? 
 v) Could Thailand please also provide details of the "quotas" used since the measure 
entered into force. 
Answer:   In 2002 many countries used the safeguard meas ures against the flow of cheap steel imports 
so the flow of those products was diverted to Thailand.  Thailand therefore had to impose the 
temporary surcharges on some steel products in orde r to relieve injury to domestic industry which 
have already been adversely effected by the econo mic crisis. However, the surcharges have already 
been terminated. 
Thailand did not use the AD measures to replace the surcharges of BOI but the AD measures were 
imposed pursuant to the investigations initiated by the request of domestic i ndustries and conducted in 
accordance with Thailand’s Antidumping Act B.E. 2542 (1999) 
The measure was not the tariff-quota; however, due to the public interest, the Committee on Dumping 
and Subsidy decided to exempt the AD measures on flat hot-rolled steel imported to produce cold-
rolled steel products. Furthermore, the measure was applied in conformity with the WTO AD 
Agreement.  The authorities decided to impose the measures after determination of dumping, injury 
and causal link. 
The lesser duty rules were applied during the inves tigation. The measures were notified to the WTO 
AD Committee according to th e Document G/ADP/N/105/THA dated 10 October 2003.  
(v) Government procurement and countertrade 
Paragraph 56  
(Chinese Taipei)   As indicated in the Report, Thailand participates in the WTO Working Group on 
Transparency in Government Procurement althou gh it is not a signatory to the Government 
Procurement Agreement. A Thailand cabinet reso lution of 1 October 2002 requires that all 
government agencies maintain their own websites co ntaining procurement information. We have the 
following questions: 
 i) Does Thailand plan to become a signatory to the Government Procurement 
Agreement?  
 ii) If so, what preparations has Thailand made so far in pursuit of this objective?  
 iii) Will Thailand consider bringing together all its government proc urement information 
on to a single website? 
 iv) And finally, are government procuremen t bidding announcements available in the 
English language via the Internet? WT/TPR/M/123/Add.1 
Page 22  
 
 Answer:   We do not have any plan to become a party to the GPA. We are considering the 
implementation of the single webs ite; however, announcements in English are not presently available.  
(United States)  We encourage the RTG to accede to the WTO GPA and also urge Thailand to work 
constructively in the WTO to support and promote a future multilateral agreement on transparency in 
government procurement. 
Answer:   We do not have any plan to become a party to the GPA although we are actively 
participating in the working group on transparency in government procurement.  
Paragraph 62
 
(China)  The counter-trade decree issued by Thai Prem ier's Office in May 2000 stipulates that all 
procurement contracts by government agencies a nd state enterprises that involve imports above 
B 300 million must have a related counter-trade trans action of at least one half of the procurement 
value. China would like to invite Thailand to clarify the operation of those practices. 
Answer :  See attachment 1. 
(United States)   With respect to Thailand’s countert rade program, could the representative of 
Thailand tell us whether the RTG has analyzed this pr ogram to determine whether it has affected the 
quality of competition and the cost of goods and services procured? Does the government plan to 
make any changes to this program? 
Answer:   Countertrade is but one of Thailand's policy op tions. Under the Office of the Prime Minister 
Regulation on Countertrade, B.E. 2543 (2000) , a countertrade transaction is required on all 
procurement of foreign goods and services by government agencies and state enterprises with value 
over 300 million baht. The value for counterpurchase of Th ai products is set to at least 50 percent of 
the import value. To date, 12 counterpurchase agreemen ts have been signed, with the total value of 
8,646.38 million baht. 
(3) Measures Directly Affecting Exports 
(ii) Export taxes, charges, and levies Paragraph 64
 
(Japan)  Please indicate the specific standard used fo r selecting the items on which export taxes 
apply. Please also indicate the specific procedures for modifying the applied rates of export taxes by 
quoting the relevant domestic laws  and regulations. For each ite m where an export tax is applied, 
please indicate the results of both quantity and sum in terms of export, as well as the applied rates of 
export taxes, for every year over the past decade. 
(Japan)  The Secretariat Report states that, according to the authorities, the collection of export taxes 
is primarily for the purpose of c onserving the environment. For ea ch item where export taxes apply, 
please indicate the specific reason for maintaining the export tax. Please also explain in detail the 
specific contribution of export taxes to conserve the environment. 
(New Zealand)  Does Thailand consider that the imposition of export duties is the most effective 
means of conserving the environment for those products affected, and if so, why?  WT/TPR/M/123/Add.1 
 Page 23 
 
 
 (United States)   Thailand levies 5 different taxes on impor ted wine that amount to an effective 
300 percent duty. These taxes include the import duty, exci se tax, municipal tax, health tax and value 
added tax. Additionally, problems with the method of calculation lead to an over-assessment of the net 
excise tax. The excise tax has risen from 40 percent to 60 percent over the past ten years. Is Thailand 
aware that a higher excise tax is levied on importe d wine than domestic wine? This may be an issue of 
national treatment. What steps is T hailand taking to address the issue? 
Answer:   Export taxes are currently applied only on a few items, namely hides of bovine animals, 
wood, sawn wood and articles made of wood for the purpose of animal and environmental protection 
as well as the conservation of exhaustible natural r esources.  The measure is considered as one of the 
most effective means of conserving the environment and scarce resources.  
With regards to taxes on wine, Thailand uniformly ap plies taxes to both domestic and imported wine.   
(iii) Export prohibitions, restrictions, and licensing 
Paragraph 65  
(Japan)   Please provide the specific contents of th e export license required for rice by quoting the 
relevant domestic laws and regulations. According to the Secretariat Report, the prevention of 
domestic shortages and export control are listed as th e reasons for the export licensing of rice. Please 
explain whether this is in conformity with Artic le XI 2.(a) of the GATT, "Export prohibitions or 
restrictions temporarily  applied to prevent or relieve critical s hortages of foodstuffs or other products 
essential to the exporting contracting party". Regar ding the export license for shrimp and octopus, 
which is applied only on exports to the U.S. and the EU, please provide details of the specific request 
by those countries for establishing  the license, as well as the specific standard of reference to 
authorize it. Regarding such export license for rice,  please explain why an export quota has been 
specially established for the EU and what are the grounds for authorizing it. 
Answer:   The export licensing of rice is required under the Export-Import Act B.E. 2522 for the 
purpose of monitoring exports and is considered cons istent with the WTO rules.  In addition, an 
export quota has been established due to the bila teral agreement on EU Enlargement as well as the 
compensation to Thailand regarding the dispute case on EU’s Reference Price. 
Regarding export licensing on shrimp and cuttlefish, we invite Members to visit the Ministry of 
Commerce’s website at www.moc.go.th . 
(iv) Export assistance 
Paragraph 69  
(Japan)   Regarding the export finance scheme describe d on page 54, footnote 43, as well as on 
pages 53 to 55 in the former Secretariat Report (W T/TPR/S/63), please indicate whether or not there 
exists any such schemes, which include the agricultural sector as a beneficiary. 
Answer:   This exists but does not apply to the agricultural sector. WT/TPR/M/123/Add.1 
Page 24  
 
 (4) Measures Affecting Production and Trade 
(i) Taxation Paragraph 74
 
(United States)   We understand that the Thai government is considering reforms to the current excise 
tax system for motor vehicles. Could the representative of Thailand tell us what the status is of plans 
for reform of this system? 
(United States)   The United States recommends that th e RTG consider a value-based system that 
would be more transparent and equitable to all manufacturers. 
(United States)   Under Thailand’s current excise tax st ructure based on engine displacement, 
passenger vehicles are taxed at a rate of 35 percen t to 48 percent while pi ckup trucks are taxed at 
rate of only 3 percent. The pre- economic crisis excise tax for passe nger cars ranged from 5 percent to 
18 percent. In addition to the restructuring of th e excise tax system, as an initial step towards 
liberalization, the United States recommends that excise taxes be rolled back to pre-crisis levels. 
Answer:   The revision of this matter is under the consideration of the Minister of Finance. 
(United States)   We would be interested to hear an explanation from the Thai representative of the 
criteria used to set the excise tax rates for dis tilled spirits. The excise tax on brandy is 30 percent ad 
valorem or 190 Thai Baht per liter of pure alcohol , whichever is higher. The excise tax on all other 
spirits is 45 percent ad valorem or 240 Thai Baht per liter of pure alcohol. 
(United States)   Could the Thai representative provide more information on the January 2003 excise 
tax reduction for local wines? We are concerned t hat this measure might not be consistent with 
Thailand’s national treatment obligations. We not e that the excise tax on wine is 60 percent, and 
when import duties, excise taxes, and other surcharges are calculated, imported wines face a total tax 
of nearly 380 percent. 
Answer:   Thailand applies excise tax in accordance w ith the principle of National Treatment.  With 
regards to fermented spirit, the ex cise tax on wine (made of grapes) is  60 percent of value or 100 baht 
per liter of pure alcohol, whichever is higher. As for fermented spirits made  from fruits other than 
grapes, e.g. mangosteen, these are s ubject to excise tax of 25 percent of value or 70 baht per liter of 
pure alcohol, whichever is higher. 
(ii) Investment incentives 
Paragraph 84  
(United States)   Regarding reforms undertaken by the BOI to change its investment incentive 
schemes, this report states that one of the approv al criteria for this program is a requirement to 
generate a value added of at least 20% of sales revenue. Please explain whether this "value added" 
must be generated domestically? 
Answer:   As one of the approval criteria, the "value added" of each project is not necessarily 
generated domestically.  In fact, th e value added is usually derived from subtracting both domestically 
produced raw materials and imported raw materials from income.     WT/TPR/M/123/Add.1 
 Page 25 
 
 
 (iv) Standards and other technical requirements 
Paragraph 90  
(China)  In 2000, a new standard of exhausted gas disc harged by motorcycle was introduced, which 
combined standards and inspection procedures of other countries. It is one of most rigid standards in 
the world, compared with other countries. The implementation of the standard also lacks 
transparency. China would like to invite Tha iland to make explanations on enactment and 
implementation of this standard. 
Answer:   The main objective of this standard is to preserve the environment and to increase the 
responsibility of the industry for public safety as well as to keep pace with the sound industrial 
development.  The compulsory standard TIS 165 0-1998, which deals with motorcycle engine 
emission, is based on the European Standard, as ap pears in the EEC Directive 97/24/EC.It is applied 
to both domestic and imported motorcycles on a non-discriminatory basis.  The regulation is 
implemented in a clear and transparent on both operation and inspection procedures. For more 
information, please visit www.tisi.go.th . 
(Hong Kong, China)   We note that Thailand intends to align its standards in priority areas with 
relevant international standards  by end 2005, covering areas in cluding electrical products and 
electronic, rubber products, machinery, food l abelling, and standards and guides on conformity 
assessment. We are interested in knowing the extent of Thai industrial standar ds being aligned with 
international standards after completion of the pro cess. Are there any plans for further alignment in 
the next stage? 
(New Zealand)  New Zealand welcomes the increasing number of  Thai standards that are based on 
international standards. What plans does Thailand ha ve in place to further increase the adoption of 
international standards? 
Answer:   Thailand will align its standards further in a ddition to the 576 standards that have already 
been aligned. Furthermore, Thailand will align its  standards on IEC 60335s, CISPR and Safety of IT 
Equipment by the year 2008 deadline. Further info rmation can be accessed at the APEC website. 
(United States)   Could the Thai representative provide an explanation of the RTG ban on large-
displacement motorcycle traffic from its tollways.  This ban affects large motorcycles that are 
engineered to be ridden safely at highway speeds. 
Answer:   These standards have been put in place fo r reasons of ensuring safety on highways. 
Paragraph 93  
(Switzerland)   The National Accreditation Council of Thailand is signatory of the Multilateral 
Agreement of the International Accreditation Foru m. Countries with accreditation bodies that are 
signatories of the IAF MLA shall accept certificates i ssued by certification bodies accredited by other 
members of the IAF Multilateral Agreement (M LA). Does Thailand, therefore, accept quality 
management certificates of foreign certification bodi es if these bodies are accredited by a signatory of 
the IAF MLA (e.g. by the Swiss Accreditation Service SAS)? 
Answer:   Thailand does not automatically accept IAF- MLA accreditation. The concerned party must 
enter into a mutual recognition agreement (MRA) with  the Thai Industrial Standards Institute (TISI). WT/TPR/M/123/Add.1 
Page 26  
 
 Paragraph 94
 
(Switzerland)   Quality management system certificates required for certain products are accepted 
provided that such certificates are issued either by a certification bo dy that has been accredited by 
the National Accreditation Council of Thailand or by  a certification body that has been approved by 
the Industrial Product Standards Council. What are the requirements for an approval by the 
Industrial Product Standards Council? 
Answer:   Criteria for Product Certification can be accessed at the TISI website, www.tisi.go.th  
Paragraph 95  
(United States)   Could the Thai representative tell us whether the RTG has any plans to revise its 
current requirements for the import of  medical devices into Thailand? 
Answer:   With regards to revision of import criteria for medical devices, the FDA is currently 
considering revision of the current requirement to  efficiently adapt and cope with the changed 
environment. 
Paragraph 97  
(Switzerland)  For what specific products is an impor t license and/or a manufacturing license 
required? Is the import license granted automatic ally or non-automatically? Are manufacturing 
licenses issued by foreign authorities taken as a reference for manufacturing licenses required in 
Thailand? Are foreign manufacturing licenses even  recognized in Thailand if they are based on 
international standards? 
Answer:   There are approximately 50 specific produc ts which require import and manufacturing 
license, of which license is not automatically granted. 
(United States)   Could the Thai representative tell us whether the RTG has any plans to modify FDA 
procedures for licensing food and drug imports?  
Answer:   FDA is currently taking this into consideration. 
(United States)   Could the Thai representative describe any efforts by the RTG to make the process of 
application for registration of regulated im ported products faster and more transparent? 
Answer:   The FDA has to proceed with caution with regards to application for registration of 
imported food and pharmaceutical products as this c oncerns the health of our population. However, 
we welcome suggestions from other Member s on how this process could be improved.  
Paragraph 98  
(China)   In some cases, the SPS measures adopted by Thailand seem to be implemented arbitrarily. 
For instance, in March 2003, Ministry of Agriculture of Thailand issued a decree to strengthen fruit 
quarantine. As a result, fruits such as apple and pear as well as mushr ooms imported from China 
were detained in Thailand's ports. In April 2003 , Thailand prohibited imports of feather products 
from China on the grounds of suspected bird flu virus. China would like to have Thailand’s justification and implementation of its  sanitary and phytosanitary measures.  WT/TPR/M/123/Add.1 
 Page 27 
 
 
 Answer:   On SPS measures affecting importation of apples, pears and mushrooms, we would like to 
clarify that these standards apply to both impor ted products as well as domestic products, including 
those intended for exports. 
On the issue of the suspected bird flu viru s, we always base our SPS decisions on the 
recommendations of relevant internationa l organizations, such as Codex and OIE. 
Paragraph 99  
(Switzerland)  For what food products is a health certificate required? What are the requirements to 
such health certificates? 
Answer:   See SPS Committee notifications. 
(United States)   Please provide a listing of all recent changes or updates to existing sanitary and 
phytosanitary regulations. What is the status of th e requirement that all plants exporting meat to 
Thailand must receive certification from the Thai government? 
Answer:   With regards to our policy on inspection of plants exporting meat, we would like to inform 
that currently there are no plans to amend this, how ever, we maintain that these measures are carried 
out uniformly for all plants irrespective of their nationality. Additionally, these regulations are also 
applied to domestic meat processing plants. 
Paragraph 100  
(Japan)   The Secretariat Report states that, "A mi nisterial announcement on genetically modified 
food products was issued under the Food Act in  2002 and entered into force on 10 May 2003. The 
announcement stipulated that food products derived  from genetically mod ified or engineered maize 
and soya in whole or in part must be labelled as such in legible form; the announcement also 
prohibited labelling such as GM free or non GM fo od. Please indicate whether or not there are any 
other food products than maize and soya which must be labelled as such in legible form. Please 
indicate whether the maize and so ya, which must be labelled in legible form, are domestically 
produced or imported. Please provide a specific lis t of items, and the conditi ons of processed foods, 
which must be labelled in legible form. Are such pro cessed foods as oil or high fructose corn syrup, in 
which genetically modified or engi neered DNA or protein seemed not to exist, out of scope of labeling 
in legible form? Please indicate the exact amount of the term "a certain amount", which is described 
on page 63, footnote 74, of the Secretariat Report. If the amount has been established par each item, 
please provide details item by item. Please also  indicate whether or not IP-handling (Identity 
Preserved Handling System), the system of a cl ear discrimination between GM and non-GM foods 
exists at distribution level. 
Answer:   Only products from maize and soya must be labeled. The maximum threshold has been set 
at 5 percent.  
(v) Intellectual property rights 
Paragraph 102  
(Canada)   It is Canada’s understanding that Thailand has not yet acceded to certain international 
treaties relating to certain interna tional treaties relating to intellectual property rights, including the WT/TPR/M/123/Add.1 
Page 28  
 
 Paris Convention for the Protection of Industria l Property and the Patent Cooperation Treaty. Is 
Thailand undertaking the work necessary to acced e to these agreements in the near future? 
Answer:   The RTG is planning to accede to the Paris Convention and the PCT. The RTG is 
undertaking necessary work in order to comply with  the requirements of the two conventions, i.e. 
preparation of draft amendments to the patent law, and institutional adjustment. 
Paragraph 103
 
(Japan)  The Secretariat Report states that a draft la w on the protection of geographical indications 
is under consideration by Parliament. Please indicate  the prospects for the draft law being approved 
by Parliament. 
Answer:  The Parliament has recently approved the GI B ill. It is now pending the royal ascent. After 
the royal ascent, the Law will be published in th e Royal Gazette and enter into force soon after.  
(United States)   While the United States is in the process of translating the bill, the status of one 
controversial provision in the final bill is unclear. Is  the provision that allows for the names of plant 
and animal species to be eligible for protection as  geographical indications included in the final 
version? Under the International Un ion for the Protection of New Varieties of Plants (UPOV), 
varietal names of plants are considered to be gen eric terms. In addition, animal breeds/species are 
also considered generic terms and thus may be freel y used. It seems problematic that the Kingdom of 
Thailand would provide that varietal names and animal species are proprietary and protectable as 
geographical indications, while these are considered private rights according the TRIPs Agreement. 
Can Thailand address whether these is a provisi on in the Geographical Indication Bill that would 
allow plant varietals and animal breeds to be reg istered as private intellectual property rights, 
namely, geographical indications? Can Thailand a ddress how this is consistent with the TRIPs 
Agreement and with UPOV? 
Answer:   The names of plant and animal species are not excluded from geographical indications 
protection as long as they meet other legal require ments i.e. not being generic terms. The TRIPS 
provision does not refer to UPOV Convention. Therefor e, Thailand chose to apply general criteria of 
protection rather than exclude certain categories of  GI. Thailand has already complied with the TRIPS 
Agreement. Thailand, however, has not yet a member of UPOV. 
(United States)   For a geographical indication of a foreign country to enjoy the protection under the 
GI Bill, it is our understanding that there must be explicit evidence that such geographical indication 
is protected under the law of such country and has been used continuously until the date of filing an 
application for registration in Thialnd. What is mean t by "explicit evidence" that a GI is protected 
under the law of such country? Would this require that a GI be registered in the home country, if 
registration is possible? Would a valid US Certifica tion Mark Registration for a GI count as sufficient 
evidence? What other evidence would suffice? (e.g. court decision in home country?) Must an 
applicant submit "explicit evidence" that the GI has been used continuously until the date of filing an 
application" in Thailand? If so, woul d attesting to this (via affidav it, etc.) be sufficient? If physical 
evidence is required, would specimens be required? 
Answer:   "Explicit evidence" includes, for instance, certificate of registration or any thing proving 
that such GI is protected in that country. Regist ration is not compulsory. What the law requires is 
evidences proving that such GIs have been lega lly protected in their home country. A valid US 
Certification Mark Registration for a GI would be su fficient but such mark needs to be in line with 
our GI law as well. An applicant must submit explic it evidence that the GI has been used continuously  WT/TPR/M/123/Add.1 
 Page 29 
 
 
 until the date of filing an application in Thailand. However, the issue of sufficiency of evidence would 
be considered on a case-by-case basis. 
(United States)   The GI Bill indicates that application for registration of geographical indication 
shall be in accordance with the rules and procedures prescribed in Mi nisterial Regulations. Could the 
United States receive copies of the current drafts of these rules and procedures? 
Answer:   The draft Ministerial Regulations are being prepared. 
(United States)   It appears that during the examination of an application for a GI that no comparison 
is made for similarity to previously registered trade marks or GI’s. Is similarity to existing trademarks 
or GI’s grounds for refusal? W ould this be a ground for private rights holders to oppose or seek 
cancellation of the GI? What are the grounds  for opposition? Can a trademark owner oppose 
registration of the GI? On what basis? Can a tr ademark owner petition to cancel/amend the GI after 
registration? 
Answer:   Similar existing trademarks or GI's does not  establish ground for refusal. Opposition rights 
appear in Section 16 of the GI Bill. There is no specific ground for opposition to GI. Any stakeholders 
can file the opposition. A trademark owner can make  the opposition as long as he is an interested 
person (stakeholders). He can also  petition to cancel/amend the GI after registration. (Please refer to 
Article 22 of the Thai Geographical Indications Bill.) 
Paragraph 104  
(United States)   Does Thailand intend to ratify and implement the WIPO Copyright Treaty and the 
WIPO Performances and Phonograms Treaty? If so, what changes to Thailand’s Copyright Act will 
need to be made in order to implement the Treaties? 
Answer:   The Ministry of Commerce proposed draft amendments to the Copyright Law in order to 
comply with internationally recognized norms a nd standards as set by the relevant international 
intellectual property treaties. The Ministry of Comm erce has already incorporated important elements 
of the WCT and WPPT into the draft amendments, which is being considered by the Cabinet. The 
Royal Thai Government does not plan to ratify the two treaties at this stage. 
(United States)   The definition of "reproduction" does not appear to cover temporary copies. Please 
explain how temporary copies are treated under Thailand’s Copyright Act. 
Answer:   The RTG’s understanding is that the term  "reproduction" covers both situations, i.e. 
permanent and temporary copies. There has never been any problem interpreting this provision in 
Thai court. 
(United States)   Could the Thai representative provide an update on the status of the legislation to 
control the production, sale and distribution of optical media? 
Answer:   The draft optical disc control legislation is currently being considered by the Parliament. 
Paragraph 106  
(United States)   We understand Thailand’s revised Trademark Act entered into force in June 2000. To 
more fully understand Thailand’s trademark provision the United States requests a copy of the 
current version of the trademark law consolidated with the amendments passed in 2000. In Section 7 
of the Trade Mark Act (no.2) B.E. 2543 (2000), the text indicates that a trademark cannot be WT/TPR/M/123/Add.1 
Page 30  
 
 registered if it contains "geographi cal indications as protected und er the law governing such." This 
language suggests that a trademark for goods unrel ated to the goods covered by the geographical 
indication could not contain the geographic reference, even if the reference wa s accurate as to the 
origin of the goods. If true, then the Trademark Act provides, in effect, a very wide scope of protection 
to a geographical indication, even when such us would not be misleading. How does Thailand justify 
giving GIs a wider scope of rights than trademarks when the use of the geographic term in a 
trademark would not be misleading a nd would not be misdescriptive, in light of Articles 22-24 of the 
TRIPs Agreement? 
Answer:   The English translation of the Tradem ark Act is available at www.ipthailand.org
. 
Under Section 8, GI cannot be registered; however , a geographical name that is descriptive under 
Section 7(2) is considered to be non-distinctive, unless the applicant could prove the existence of the 
secondary meaning under Section 7(3). 
It is important to understand that Trademark and GI are different in nature. The explanation could be 
divided into two cases. When a geographical name describes a true origin of goods, the name would 
be considered as a non-distinctive mark; but when a geographical name is misleadingly referred to a 
wrong origin, the name would be considered as a decep tive mark. Yet, there is a possibility to register 
a geographical name as a trademark when it can be di stinctive either through the fanciful use of mark 
or the secondary meaning. On the other hand, rega rding GI, it is a geographical indication using to 
indicate the true origin of goods a nd certain link between goods and place. 
We could provide GI protection as is because it ma y, in principle, be extended to cover unfair 
competition or consumer protection which is not  inconsistent with the TRIPS Agreement. 
Paragraph 108-109  
(United States)   We have heard of concerns about the long patent pendency rates at the Thailand 
Department of Intellectual Property. Please descri be efforts in the department to address these 
concerns. 
Answer:   The Department of Intellectual Property is seeking to contract-out some parts of patent 
search for novelty and preparation of application to academic institutions in order to speed up 
registration process. 
Paragraph 109, Table III.10  
(Hong Kong, China)   We note from the Secretariat Report t hat while annual paten t applications have 
remained at more or less the same level, the num ber of registrations have plummeted sharply in 1999 
and revived significantly since 2000. Is there any partic ular reason for such fluctuation? Could this 
be the result of a change in policy in the pr ocessing of patent applications submitted to the 
authorities? 
Answer:   At that time, the patent office experien ced manpower shortage. As you may notice, the 
proportion between patent applicati on and patent granted does not fluctuate much in recent years. 
Paragraph 111  
(Switzerland)  Please explain how the Thai legislation en sures that undisclosed test or other data 
submitted by an applicant to the responsible state age ncy in the procedure for market authorization of  WT/TPR/M/123/Add.1 
 Page 31 
 
 
 a pharmaceutical or an agricultural chemical product is protected against unfair commercial use by 
a competitor. Is a second applicant prevented from rely ing on, or from referring to the original data 
of the first applicant, when applying subsequen tly for market authorization for a similar product? 
Answer:   Article 15 of the Trade Secret Act requir es state agencies concerned to maintain trade 
secrets from being disclosed, deprived of, or used in unfair trade activities, including to protect 
undisclosed test data or data submitted by an appli cant to responsible state agencies in the procedure 
for market authorization of a pharmaceutical or  an agricultural chemical product against unfair 
commercial use. The implementing regulations are bei ng prepared and expected to be promulgated in 
early 2004. 
As a minimum, the regulations shall contain the following provisions. 
 - Conditions of request submitted to state agencies for maintenance of trade secrets, 
 - Details of testing result and information that is qualified as trade secrets,  - Period of time for which trade secrets are to be maintained,  - Method for maintenance of trade secrets,  taking into consideration the type of 
technology and testing result or confidential information, and, 
 - Duties and responsibilities of state offici als in the maintenance of trade secrets. 
(United States)   What is the status of the implementati on regulations for the Thailand Trade Secret 
Act? When will these regulations be promulgated? 
Answer:   The implemention regulations for the Trade Secret Act are being prepared by agencies 
concerned. It can be expected that they will be promulgated in March or early 2004. 
Paragraph 114
 
(Japan)   Japan’s business industries have pointed out th at the registration of a license contract in 
Thailand could create a barrier for licensees when tr ying to obtain a license for intellectual property 
rights from the right holders, seeing as competitors  can have access to the detailed contents of the 
contract. This situation arises because a copy of all contracts is held by the Department of Intellectual 
Property Rights in Thailand and because the proce dure for registration is a burden for applicants. 
Please explain whether the conditions of  registration will be reviewed or not. 
Answer:   Regarding your concerns on trademark license procedures that it may reveal your 
contractual content to outsiders, Announcement of Department of Intellectual Property dated 
June 30, 2000 grants the licensor the right to omit confidential parts of his licensing agreement upon submitting it to the registrar. The registrar, however , still has a duty to review whether the agreement 
contains clauses that may create confusion to the public, oppose to public polic y or unfair competition 
practices (Sec. 69 of Trademark Act). 
Likewise, the content of patent licensing agreemen t will be subject to unfair competition law as well 
(Sec. 39 of the Patent Act). Due to the requireme nt of information law, such agreement can be 
revealed to the public. In practice, however, patent  licensor still holds the right to omit confidential 
clauses of his agreement upon submitting it to authorities. WT/TPR/M/123/Add.1 
Page 32  
 
 Paragraph 115
 
(United States)   Why is ex officio authority of customs officers to seize suspected infringing goods 
limited to only trademark infringing goods and not extended to copyright infringing goods? 
Answer:   According to the current Copyright Act, copyright infringements are compoundable 
offenses. The enforcement officers cannot act without complaint from the copyright owners. 
However, in practice, the problem is resolved th rough coordination and information sharing between 
customs officers and private rightholders. In a ddition, the proposed draft amendments to the 
Copyright Act include a proposal to change copy right violation into a non-compoundable, so that 
complaint from the copyright owners would no longer be required. 
(United States)   Where else, other than border points, do customs officers exercise their jurisdictional 
authority to inspect and seize suspected infringing goods? 
Answer:   It is understood that customs officers can only exercise their jurisdictional authority to 
inspect and seize suspected infringing goods at bor der points and customs areas as permitted by law. 
Paragraph 116  
(Japan)  In Thailand, damage suffered by Japanese enterp rises for imitations is still serious. In light 
of such circumstances, according to the Secretariat Report, the Govern ment has taken various actions 
to promote and enforce the protection of intellect ual property rights: the Royal Thai Police, for 
example, in coordination with the Department of  Intellectual Property, started monitoring and 
raiding shopping centres and factories; and the relev ant agencies are enhancin g coordination for the 
protection of intellectual property rights. Please pr ovide details of any plans that intend to take 
further monitoring and raiding actions to protect IPRs. 
Answer:  Thailand has adopted an effective system of intellectual property (IP) protection  both by 
modernizing our intellectual property legisl ation and effective enforcement system. 
In order to enhance a more effective system of intellectual property rights (IPRs) protection, the RTG 
recently taken the following initiatives: 
1. Legislative Measures 
Proposed the enactment of Optical Disc Control Bill  to the Parliament on 9 October 2003. This 
legislation once adopted would enable the RTG to effectively control and monitor the production of 
optical disc. The Bill is being reviewed by the special parliamentary committee. 
2. Enforcement Measures 
As a result of the aggressive enforcement efforts of  the RTG, the IPRs violations have been reduced 
substantially, especially VDO-CD. Provate sectors reporte d that the level of piracy has been reduced 
by 91%.   
2.1 In order to control the importation of CDs  producing machinery, the Ministry of Commerce 
requires import license. The importers are also requi red to be the legitimate right-owners or under 
licensed by right-owners.  WT/TPR/M/123/Add.1 
 Page 33 
 
 
 2.2 In order to control the production and distribution of CDs , owners of CDs producing 
machineries, producers, contractors, importers, selle rs or renters of CDs are obliged to report and 
subject to close monitor by relevant government agencies. 
2.3 In order to encourage all officers and indivi duals to join hands in cracking down copyright 
violations, the RTG is applying a new incentive scheme of granting rewards and bounties  to those 
involving in the executing of pirated CDs cases.  
2.4 Several memorandum of understanding  among government agencies and private sectors have 
been arranged in order to enhance optimum efficiency in carrying out suppression measures both internally and at the borders. Joint actio n plans were agreed and implemented.  
2.5 Seven special operation units
, composing of representatives of government agencies and 
stakeholders, have been set up to make daily insp ections of  factories and shopping centers. These 
task forces have been in a non-stop operation mode  since May 1, 2003 including weekends and public 
holiday 
(Japan)   With regard to the control of imitations, it is effective to take action at the borders in 
addition to any domestic monitoring. Please indicate  the current actions applied to suspend any 
imports or exports at the frontier in  order to protect from imitations. 
Answer:  Seize and destroy. 
(United States)   Is the coordination between the Royal Thai Police and the Thai Department of 
Intellectual Property, in the monitoring and raiding of major shopping centers and CD factories, an on-going or intermittent operation? 
Answer:   The seven task forces composing of representatives of government agencies and 
stakeholders have been set up to make daily insp ections of factories and shopping centers. These task 
forces have been in a non-stop operation mode si nce May 1, 2003 including  weekends and public 
holidays. 
(United States)   We understand that the Thai government is working hard to get agencies that are 
involved in the IP enforcement efforts or ganized and coordinated and that two Memoranda of 
Understanding (MOU) were signed by the Department of Intellectual Property (DIP) with the private 
sector and the police, and with the private sector  and the Customs Department, respectively. Could 
the Thai representative tell us what results have b een achieved to date due to the establishment of 
these MOUs? 
Answer:   As a result of the RTG's aggressive enforcemen t efforts, IPRs violations have been reduced 
substantially, especially those that involve VDO-CD. Private sector reported that the level of piracy 
has been reduced by 91percent. 
(United States)   We believe that the organization of the Special Investigation Division (SID) would 
make n important contribution to an effective su stained campaign against piracy. Could the Thai 
representative provide an update on the status of the pending legislation regarding the SID? 
Answer:   Since the proposed legislation for the est ablishment of the SID has been substantially 
amended by the Senate, the differences will be resolved by a joint Pa rliamentary committee. WT/TPR/M/123/Add.1 
Page 34  
 
 (United States)   We understand that the Thai government  is stepping up its efforts to address the 
rapidly growing problem of cabl e piracy. Is it possible for your government to shut down all 
unlicensed cable operators and withdr aw the licenses of licensed opera tors who violate the copyright 
law? Could your government instruct the el ectric authority to strip the illegal networks? 
Answer:   The Department of Intellectual Property is  consulting with the Department of Public 
Relations on the possibility to amend their regulations  so that the competent authority will have the 
power to refuse the renewal of license to their cable op erators if they were found to have violated the 
Copyright Law. 
The Government cannot instruct the electric author ity to strip the illegal networks because we are 
unable to encroach to the private rights of the Thai citizen. However, we can seek cooperation from 
the electric authority to act as permitted by law. 
Table III.11
 
(United States)   Is there an explanation for the apparent inverse relationship between the number of 
arrests in different years and the number of items/m aterials seized? For example, it would appear that 
under the Copyright Act, despite a noted increase in arrests in year 2001 and 2002 from the number 
of arrests in the year 2000, there was substantially fe wer items actually seized each subsequent year. 
This phenomenon also seems to have occurred unde r the Trademark Act in years 2000-2001; under 
the Patent Act in years 1998-1999, and 2000-2001;  and under the Cassette Business and Television 
Devices Act in years 2000 and 2002. 
Answer:   There is no correlation between the number of arrests and the number of items/materials 
seized. The number of items/materials seized is a matter of fact on a case-by-case basis. 
(vi) Involvement of state-owned enterprises in production and trade Paragraph 121
 
(United States)   The Government Pharmaceutical Organization (GPO) is not subject to the same 
requirements faced by the private sector with resp ect to registration and permitting. The GPO can 
also produce and market generic formulations of drugs marketed by foreign countries irrespective of 
safety monitoring program protecti on. Could the Thai representative tell us whether the RTG has any 
plans to modify any policies regarding the GPO? 
Answer:   FDA is in the process of modifying policies regarding the GPO. 
(vii) Regulation of corporate practices 
Paragraph 124  
(United States)   We would encourage the RTG to review its price control review mechanisms. Price 
control determinations are sometimes based on out dated assumptions, such as an exchange rate, but 
go long periods without review, even upon repeated petition for review by affected parties. 
(United States)   We are also concerned that while in pr actice few commodities are subject to formal 
price controls, the RTG may use its potential authori ty and its control of major suppliers of products 
and services under state monopoly, such as the petrol eum, aviation, and teleco m sectors, to influence 
prices in the local market.  WT/TPR/M/123/Add.1 
 Page 35 
 
 
 Answer:   The Price Control Act has just been enacted recently.  We do not have any plans to modify 
the Act at the moment.    
Paragraph 126  
(Japan)  The Secretariat Report states on pages 69 to 70, paragraph 126, that subject to Cabinet 
approval, the Central Commission on Price of Goods and Services has the power to designate any 
particular goods or services as c ontrolled goods or services, or introduce minimum purchasing prices 
for these goods and services, and to maintain the pri ces at a certain level. According to footnote 85 
on page 70 of the Secretariat Report, the current list of controlled goods includes such goods as 
formic acid, chemical fertilizers, pesticides and fungicides. Why are such goods included in the 
current list of the controlled goods? Regarding such controlled goods , have the maximum and 
minimum prices already been set up? If so, please indicate the price. 
Answer:   As formic acid, chemical fertilizers, pesticides and fungicides are the important factors of 
production for agricultural products, the purpose of including such goods in the list of controlled 
goods is therefore to prevent the unfair fixing of conditions or trade practices.   
The maximum and minimum prices of such controlle d goods have not been set up. However, the 
producers of such controlled goods are required to notify the competent official of the distribution 
price to ensure its conformity with the cost of production, quality and quantity. 
The Central Commission on Prices of Goods and Services will review the exercise of power at least 
once a year to ensure its conformity with the ec onomic conditions, taking into account the cost of 
production, expenses incurred in the production, the import, the export, the purchase, the distribution, 
the appropriate profit rate effects on investment in  the light of expansion of production capacity of 
subsequent stages. The notification of the Commi ssion shall be valid for the specified period, 
provided that the specified time shall not be longer th an one year unless a new notification is issued.  
Paragraph 129  
(Japan)   According to the Secretariat Report on page  70, paragraph 129, the Office of Trade 
Competition Commission has made decisions on three ca ses, two of which are described but the third 
is not. Please specifically indicate the case whic h is not described in the Secretariat Report. With 
regard to these three cases, please provide any materi al in English open to th e public, if available. 
(Japan)   It is reported that AP Honda is, this year, the objective of a complaint based on the Trade 
Competition Act. However, it seems that the relevant information has not been provided to AP Honda, 
the party primarily concerned. J apan is worried about ensuring a fair procedure for the case. Please 
indicate the current status of proceedings agains t AP Honda. Please describe how the measures by 
the Trade Competition Commission against anti-compe tition actions are open to the public. Please 
provide in English a list of the measures taken by the Trade Competition Commission. 
(Japan)  According to the authorities, one of the reas ons for a weak enforcement of the competition 
legislation could be the lack of resources, includi ng a lack of funds for such activities as staff-
training. Please indicate what measures the Government  of Thailand is taking to solve this problem. 
(Japan)  We note that Thailand has been technically assisted in competition policy by Japan and 
other donors. Please describe how Thailand deals wi th the dispatching the role between Japan and 
other donor countries in terms of the category and s hare of technical assistance by each developed 
county where referring to its lack of funds. WT/TPR/M/123/Add.1 
Page 36  
 
 Answer:   The case which is not described in the Secr etariat report is unfair trade practice in the 
motorcycle industry. This case is currently in th e course of the legal process.  The Thai Trade 
Competition Commission (T-TCC) will take action according to the Competition Law designation, 
which are conducted in line with in ternational standard. The result of the T-TCC consideration will be 
provided to the public where the scope of the la w provided via the media. Hence, the detailed 
information cannot be released to public until the case is finalized. 
With regard to the lack of resources and funds of  the competition agency, th e agency involved (the 
Department of Internal Trade) has solved  the problem by seeking technical assistance from 
international organization and ot her competition agencies by developed countries. The technical 
assistance is requested in term of providing competition experts to organize training programme for 
staffs and supporting funds for inte rnship program in order to lear n experience of other competition 
agencies from developed countries.  
IV. TRADE POLICIES BY SECTOR 
(1) Introduction 
Paragraph 2
 
(Chinese Taipei)   As a member of the "Cairns Group", Thailand supports trade liberalization for 
most farm products, but the high levels of tar iff escalation on many processed food products create 
barriers and deter imports of semi-finished and finished goods. Does Thailand have a plan and a timetable to reduce this tariff escalation? 
Answer:   Thailand fully supports the Cairns Group’s propo sal to ensure deep cut to all tariffs and to 
address the problems associated with tariff peaks and tariff escalation as indicated in Job (02)/112.  In 
addition Thailand also supports the Derbez Text, whic h addressed the problem of tariff escalation in a 
concrete manner, as a basis for further DDA nego tiations.  Thailand is pl anning to reduce tariff 
escalation as part of the agreed overall agricultural trade reforms - substantial improvement in market 
access, substantial reduction in domestic support a nd elimination of export subsidies - during the 
implementation period of DDA. 
(2) Agriculture 
Paragraph 9
 
(Japan)   Please describe in detail how the budget for agriculture, since the Asian economy crisis, has 
effected the production of agriculture in Thail and, by stating the overall budget amount of the 
government and of agriculture (or rather of the Ministry of Agriculture and Co-operatives), in 
addition to the amount of the gross product of agr icultural exports and to the amount of agriculture 
products. Please indicate the items which Thailand  regards as important in view of non trade 
concern, with the tariff rates and the main domestic  measures for such items. If many items are 
regarded as important in such view, please indicate about largest 5 items in order of the amount of agricultural products. 
Answer:   The budget of Ministry of Agriculture and C ooperative after Asia Economic Crisis has been 
allocated at 63.8, 65.7, 69.2, 67.7, and 63.4 b illion Baht in 1998, 1999 , 2000, 2001 and 2002 
respectively, while the value of agricultural sect or to GNP was recorded at 565, 503, 511 and 
532 billion Baht during the same corresponding pe riods. Information on the value and volume of 
agricultural exports of Thailand can be found in Document G/AG/W/32/Rev.6 and the following  WT/TPR/M/123/Add.1 
 Page 37 
 
 
 websites:  www.moc.go.th  and www.customs.go.th . Thailand is more concerned with trade distortions 
in the world agricultural markets as well as restrictiv e market access to our ex ports than any non-trade 
concern.  Of course our non-trade concerns are the poverty alleviation and rura l development.  We are 
certain that such problems could be solved by  comprehensive global agricultural trade reforms. 
(Japan)  In 2001, Thailand introduced a new scheme for the compulsory use of domestically -
produced raw milk in the context of its school milk  project. Please describe the scheme in detail and 
how the government sectors are invol ved in the scheme. Please provide Thailand’s view as to whether 
or not this is considered as a newly-estab lished indirect subsidy for dairy farmers. 
Answer:   Thai government provides a budget for the purchase of pasteurized fresh milk only for 
Grade 1 – Grade 4 pupils in public schools.  Most of them are from poor families and cannot afford to 
have lunch at school.  The objective of the schem e is to address the problem of malnutrition among 
underprivileged children.  Though it was carried out  in the form of government procurement, the 
purchase was made at the current market price. We do not consider such scheme to be an indirect subsidy but rather a scheme to help those child ren access to proper and nutritious school lunches. 
(Japan)   The Ministry of Agriculture and Co-operati ves has introduced a standardized farm scheme 
for livestock and poultry production, and has limite d production for exportation only to the accredited 
farms. Please provide details on the standard for ac creditation. Please indicate whether the applicant 
is limited to Thai nationals only. Will the scheme be also applied to imported agricultural products in 
the future? 
Answer:   Ministry of Agriculture and Cooperativ es has established criteria for accreditation of 
livestock and livestock product establishm ents in general and not those intended solely for export. It is 
the policy of the Department of Livestock Developm ent to monitor quality of exports that they meet 
importing countries’ requirements. It is therefore necessary to approve the whole system of livestock and livestock production through this registration sch eme. The applicants are not limited to Thai 
nationals. For imported products, in formation on sanitary measures applied in the exporting countries 
have to be provided to the Department of Livest ock Development to ensure the products are free from 
certain animal diseases and will not introduce certain  diseases into Thailand. Other measures include 
on-site visits of veterinary authority from the De partment of Livestock Development for approval of 
the establishment before a permit can be issued. 
(Japan)   Thailand introduced a 100% inspection for chemical residues in chicken and shrimp for 
exportation. Will this also be applie d to products sold in the domestic market in the future? If so, will 
imported products be affected? 
Answer:   Residues monitoring scheme is applied to  both domestic and export products. Since the 
Thai government has declared next year to be the "Food Safety Year" of Thailand, the Department of 
Livestock Development is working closely with relevant agencies in controlling the residues in 
agricultural products including meat, fisher y products, vegetable and fruits, etc.   
According to our national food safety policy, we are in the process of adoptin g a single standard for 
products and commodities intended for domestic c onsumption, for importation and exportation and 
therefore there is a need to adjust certain standa rds to achieve the said objective. Nevertheless, we 
would like to ensure that although we will use ne cessary and appropriate measures to ensure food 
safety and quality for our people, these measures will not run counter to WTO principles or cause 
unnecessary hindrances to international trade. WT/TPR/M/123/Add.1 
Page 38  
 
 Information regarding standards for livestock and poultry inspection can be  accessed at the following 
website:  www.acfc.go.th
. However, information regarding chic ken egg farms and duck farms has not 
yet been uploaded onto the website, but  will be uploaded in due course. 
Paragraph 10  
(Chinese Taipei)   The Public Warehouse Organization is responsible for the importation of certain 
quantities of tea under tariff quota. It would be appr eciated if Thailand could provide details of how 
decisions on quality and pricing a re made in practice, to demonstrate that the decision-making 
process operates purely on a commercial basis? 
Answer:   80% of TRQ volume would be annually allocat ed by the Department of Foreign Trade to 
the applicants according to their past import perform ance in the previous three years and 20% to those 
without past import performance in proportionality. 
(3) Policies Developments in the Energy Sector 
(ii) Other energy Paragraph 20
 
(Japan)  The Secretariat Report states that the distribution and sales of electricity remain a state 
monopoly; there is no third-party access for the time  being in the transmission and distribution 
system, and no retail competition. However, the Govern ment has promoted the participation of the 
private sector in electricity generation. Please exp lain whether any privatization in the distribution 
and sales of electricity or any third-party access, are being planned or not. 
Answer:   At the moment, Thailand has no plan to priva tize the distribution and sales of electricity nor 
third-party access.  Nevertheless it is worth noting th at the Energy Industry Act is being drafted in 
order to establish an independent regulator in ener gy sector.  The drafting process is expected to be 
finalized in 2005.  Under the Act, the regulator  will be endowed with the power determine the 
desirability and the necessity of privatization in the distribution and sales of el ectricity and third-party 
access. For more information, please visit the we bsite of Energy Plan and Policy Office:  
www.eppo.go.th/power/FF-E/pw-reform-1-main-E.html#4  
(United States)   Could the Thai representative provide deta iled information on the elements included 
in the approval process for sma ll and independent power producers? 
Answer:   
IPP 
 - The bidding process is overseen by th e Selection Committee comprising officials 
from Electricity Generating Authority of  Thailand (EGAT), National Economic and 
Social Development Board, Ministry of Fi nance and Energy Plan and Policy Office. 
 - The applicant must complete the environmental Impact Analysis (EIA). The EIA 
must be approved by Ministry of Na tural Resources and Environment before 
proceeding with the concession application. 
 - Other domestic regulations such as factory law could also be applied in granting a 
concession to the power producers.   WT/TPR/M/123/Add.1 
 Page 39 
 
 
 SPP 
 - A small power producer can submit the request any time.  
 - The Electricity Generating Authority of Thailand, the Metropolitan Electricity 
Authority and the Provincial Electricity Au thority will consider the request based 
upon (1) the connection and operating standards and (2) safety standards. 
 - Upon approval, the contract will have to be signed within 1 year. 
 - The applicant must complete the environmental Impact Analysis (EIA). The EIA 
must be approved by Ministry of Na tural Resources and Environment before 
proceeding with the concession application. 
 - Other regulations such as factory law w ill be applied in granting a concession to 
power producer. 
(4) Policies Developments in Selected Manufacturing Sectors 
(i) Textiles and clothing Paragraph 26
 
(United States)   We note that in the Uruguay Round Thailand bound its tariffs on clothing 
(HS Chapters 61 and 62) at no higher than 30% ad valorem, or in some cases, no higher than a 
specified value per unit. Thailand’s current applie d tariffs, as published on the APEC Website, on 
some clothing products in HS subheading 620 3-6215 are listed as 60% or more depending on 
whether a specific unit duty is applied. We would appreciate an explanation of the relationship between the tariffs listed on the APEC website and Thailand’s WTO bindings. 
Answer:   The information regarding Thailand’s textiles and clothing tariffs in the APEC website will 
be updated shortly in order to be in conformity with the WTO Commitment. 
(ii) Steel products 
Paragraph 31
 
(Switzerland)   Paragraph 31 mentions that steel products included in table AIII.2 of the same 
document must meet mandatory technical regulations . Why must these steel products meet mandatory 
technical regulations? Are the relevant industria l standards mentioned in table AIII.2 based on 
international standards? What are the conformity assessment procedures requi red in order to prove 
compatibility with these standards? 
Answer:  The steel products must meet mandatory technical regulations in order to ensure safety and 
prevent any harmful effects that may befall the public. The technical regulations are based on 
international standards and applie d on a non-discriminatory basis. Further information is available at 
www.tisi.go.th . WT/TPR/M/123/Add.1 
Page 40  
 
 (5) Services 
Paragraph 35
 
(Canada)  The WTO Secretariat Report notes that Thail and has taken Article II (MFN) exemptions on 
telecommunications.  Could Thailand please describe the measure(s) pertaining to telecommunications that are inconsistent with Article II and indicate how long these measures are 
likely to remain in effect? 
Answer:  Thailand never made a reserva tion on measures inconsistent with Article II (Most Favored 
Nations principle) in the telecoms sector. 
(Japan)  Except for such service secto rs as telecommunications and financial services, the foreign 
Business Act of Thailand labels juridical p ersons, those having 50% or more foreign capital 
participation, as "foreigner". Thus, foreign investors in service sectors, even though majority or full 
capital ownership are allowed pursuant  to the standards of the annex of  the above Act, could, in some 
service sectors, be subject to a sort of discriminat ory treatment, as provided for in Thailand’s 
Schedule of Specific Commitments. Please provide an illustration of major existing measures of a 
discriminatory nature, and the justification th ereof in view of national policy objection. 
Answer:  The entities that have majority foreign ow nership are subject to minimum capital 
requirements and general provisions stipulated in the Foreign Business Act. For further information 
please visit the website of the Department of Business Development at www.dbd.go.th
 
(Japan)  Thailand, in its initial offer (TN/S/O/THA), gi ves a specific example of subsidies for such 
discriminatory treatment.  
Please provide a list of all existing discriminatory subsidies indicating the respective applicability 
thereof. 
Answer:  The Ministry of Commerce is compiling the information on subsidies in services sector.  
(Japan)  Regarding the movement of na tural persons supplying servic es in the category of business 
visitors, it is understood that foreign natural persons , staying in Thailand for 15 days or longer, are 
required to obtain a Work Permit. This requirement,  however, is not indicated in the Schedule of 
Specific Commitments of Thailand. Please expla in about why such inconsistency exists.   
Please explain about why su ch inconsistency exists. 
Answer:  It is understood that Members are not obliged to schedule such requirements (such as work 
permit procedures and types of visa required). Th e Annex on Movement of Natural Persons gives a 
WTO Member freedom to apply any measures to regul ate the entry of natural persons into, or their 
temporary stay in, its territory including those measu res necessary to protect the integrity of, and to 
ensure the orderly movement of natural persons acr oss its borders. The fact is some Members have a 
unified entry system, meaning visas and work permits are issued by a single agency, and others do 
not. 
(Chinese Taipei)  As indicated in the Report, in financial  services, although new branches are subject 
to discretionary licensing, certain "grandfathering" provisions allow foreign bank branches operating 
in Thailand before July 1995 to open up to two more branches (GATS/SC/85/Suppl.3).   WT/TPR/M/123/Add.1 
 Page 41 
 
 
 Presumably, does this regulation apply to all qualifi ed foreign banks operating in Thailand? If this is 
the case, we would request that the application made by a particular Taiwanese bank be given 
favorable consideration. 
In addition, we are interested in knowing what are the relevant regulations governing the procedures 
and qualifications required for the representative office of a foreign bank to be upgraded to a branch.  
Answer:  Although the aforementioned branching guideline applies to all qualified foreign banks that 
were operating in Thailand prior to July 1995, th e Financial Sector Master Plan currently being 
deliberated by the Ministry of Finance also e nvisions ways in which existing foreign commercial 
banks will be allowed to open up additional branches. However, because the Plan is not yet 
completed, it is premature to detail the exact nu mbers or manners with which foreign commercial 
banks will be allowed to open additional branches. 
In terms of the financial institution licensing guide line, the review and appr oval criteria for new bank 
licenses are all based solely on prudential reasons. Going forward, we envision the creation of a committee to review applications for new licenses. 
(United States)   Could the Thai representative tell us wh ether the Royal Thai Government has any 
plans to liberalize current nationality and equity restrictions that apply to accounting and legal 
services? 
Answer:   Legal and accounting services fall under the 39 pr ofessions contained in the Annex attached 
to the Royal Decree Prescribing Works Relating to Occupation and Professional in which an Alien is 
Prohibited to Engage B.E. 2522 (1979). The Foreig n Business Act B.E. 2542 (1999) permits foreign 
equity participation of up to 49%. 
(United States)   Considering the experience and acco mplishments of foreign engineers and 
construction companies and the contribution they c an make to the local economy, could the Thai 
representative tell us whether the Thai government has contemplat ed relaxing regulations that 
prohibit or limit the ability of foreigners to partic ipate in construction a nd engineering in Thailand? 
Answer:   Apart from civil engineering, which is reserv ed for Thai nationals within the sense of the 
Royal Decree already mentioned above, other types of engineering services provided by foreign 
engineers are allowed. The Foreign Business Act B.E. 2542 (1999) pe rmits foreign equity 
participation of up to 49%. Full fo reign ownership is allowed for c onstruction of public utilities or 
transport requiring special tools machinery, tec hnology or construction expertise and meets the 
minimum capital requirement of 500 million baht. 
(United States)   From the standpoint that lawyers, architects and other professionals are an integral 
part of a country’s economic infrastructure, could th e Thai representative tell us whether the Thai 
government is considering licensing of qualified foreign professionals, who have much to contribute to a country’s efficient growth and development? 
Answer:   Relevant professional associations are exploring the possibility of licensing of qualified 
foreign professionals.   WT/TPR/M/123/Add.1 
Page 42  
 
 (i) Financial services 
Paragraph 39
 
(Hong Kong, China)  It is noted that foreign equity limits we re allowed to be raised from the previous 
25% UP TO 100% within a ten-year period starting from 1997. While we appreciate Thailand’s effort in liberalizing the market, would Thailand share with  us the rationale for limiting the implementation 
of this liberalization measure to a finite duration? 
Answer:   Under this guideline, once the 10-year limit is  completed, the foreign investor will not be 
allowed to purchase additional equity until their equi ty holding falls below 49 percent.  In other 
words, if there is no need for the financial instituti on to recapitalize, the foreign investor is welcomed 
to continue to maintain their 100 percent ownershi p, and therefore it can be said that the Bank of 
Thailand is not limiting the implementation of this liberalization measure.   
We also note that after the ten-year period, foreign investors will not be allowed to purchase 
additional equity or participate in equity recapita lization of financial institutions unless their equity 
holding is less than 49%. Would there be any limit  for such further increase of foreign equity? 
Besides, such allowance has not been so inscribe d in the commitments. Would Thailand consider 
reflecting such liberalization measure in the initial offers, so as to provide certainty for the market? 
Answer:   This guideline was included in Thailand’s sch edule of commitments that was tabled in the 
previous round of WTO negotiations so it may not be necessary for us to include the measure once 
more in the Doha round. 
(Japan)  The Secretariat Report states that foreign equity  limits were relaxed in 1997 for ten years in 
order to allow foreign ownership of up to 100 % (previously 25%) in commercial banks. Please 
confirm whether foreign ownership of 100% when establishing a co mmercial bank is still allowed. 
(United States)   Could the Thai representative tell us wh en Thailand plans to implement further 
liberalization in the financial sector? 
(United States)   The 10-year time limit on 100 percent foreign ownership of banks, finance 
companies, and securities firms would seem to work agai nst Thailand’s objective of attracting foreign 
investment to its financial sector. Could the Th ai representative tell us whether Thailand has 
considered removing these limits or lengthening them? 
Answers:   The Financial Sector Master Plan foresees further liberalization of the financial sector 
following the completion and implementation of su ch essential infrastructure frameworks such as the 
Deposit Insurance Act, and authority for regul ators to perform prompt corrective action.  
The 10-year time limit on 100 percent foreign owners hip of banks, finance companies, and securities 
firms would seem to work against Thailand’s objective of attracting foreign investment to its financial 
sector. 
Could the Thai representative tell us whether Th ailand has considered removing these limits or 
lengthening them? 
Answers:   Although the grandfathering of 100 percent foreign ownership of locally-incorporated 
banks has a 10-year limit, the foreign investor will not  be forced to dilute their ownership when the 
10-year period is completed. Once the 10-year limit is completed, the foreign investor will not be  WT/TPR/M/123/Add.1 
 Page 43 
 
 
 allowed to purchase additional equity until their equi ty holding falls below 49 percent.  In other 
words, if there is no need for the financial instituti on to recapitalize, the foreign investor is welcomed 
to continue to maintain their 100 percent ownership. 
Paragraph 46  
(Canada)   Although the Bank of Thailand regulates mo st of the banking sector (and will apparently 
increase its regulatory powers under the future Financ ial Institutions Businesses Act), the Minister of 
Finance is responsible for licensing locally incorpor ated banks.  Further to comments in paragraph 
46 of the Secretariat Report, what amendments to the bank-licensing regime are being considered?  Is 
Thailand considering moving licensing responsibility for local banks to the Bank of Thailand in the 
future, either through the Financial Institutions Bu sinesses Act, or in the Financial Sector Master 
Plan? 
Answer:   The Financial Sector Master Plan, currently being deliberated by the Ministry of Finance 
concerns amendments to Thaila nd’s financial institutions’ licensi ng regime. The Plan envisions a 
much more streamlined licensing regime with less duplication in terms of the financial institutions’ 
scope of business. Nevertheless, given the fact that th e Financial Sector Master Plan is currently being 
deliberated by the Ministry of Finance, it will be premature to comment on the specifics of the Plan. 
In terms of licensing authority, the draft Financ ial Institutions Businesses Act that was approved by 
the lower house of parliament envisions that the authority to license financial institutions will fall 
under the purview of the Bank of Thailand.  
(Canada)   Thailand’s GATS Schedule of Specific Comm itments for financial services notes that the 
Minister of Finance, with the consent of the C abinet, must approve new licenses for foreign bank 
branches.  Can Thailand please indicate what factors the Minister of Finance and Cabinet members 
consider in reviewing license applications?  Is this review based solely on prudential considerations?  
Is the Thai government also considering giving responsibility for licensing foreign bank branches to 
the Bank of Thailand in the future? 
Answer:   The Ministry of Finance will approve new licenses for foreign bank branches based on the 
Bank of Thailand’s analysis and opinion.  The re view and approval criteria for new bank licenses are 
all based solely on prudential reasons. For example,  in reviewing the applications of new commercial 
banks, the Bank of Thailand will perform fit and prop er scrutiny on qualifications of the applicant’s 
directors, and will also review the applicant’s past  financial performance and stability. Going forward, 
we envision the creation of a committee to review applications for new licenses. 
Paragraph 48  
(Canada)  The Secretariat Report notes that a bill is being considered at ministerial level to amend 
the insurance legislation and allow 49% foreign e quity participation, after which majority 
participation would be considered . Can Thailand please indicate whether it has a time-line for 
passage of this bill, and if so what is the target date? 
Answer:   The length of time required depends on the s ubstance of the amendment and workload of 
the Parliament. 
(Japan)  According to the Secretariat Report, proposed legislative amendments, if approved by the 
Parliament, would raise the limit of foreign equity participation in a joint venture from 25% to 49% WT/TPR/M/123/Add.1 
Page 44  
 
 as the second stage of liberalization for insurance.  Please indicate the current status of progress in 
the proposed legislative amendments. 
Answers:   The proposed amendment to the Life Insu rance Act and the Non-life Insurance Act has 
been endorsed in principle at the Ministerial level; pending the submission to the Council of Ministers.  
Generally, the law amendment process is initiated by the implementing authority, i.e. the Department 
of Insurance. The Minister of Commerce will consid er it. Once approved, the law will be submitted to 
the Council of Ministers. The Council of Ministers may seek legal opinion from the Council of State. If the Council of Ministers endorse the proposed amendm ent, it will refer to the Parliament.  The draft 
will have to pass three readings in the House of Representative and another three in the Senate. The 
whole process is completed upon HM the King’s royal signature. 
(United States)   Could the Thai representative provide a timetable for further liberalization in the 
insurance sector? 
Answer:   Thailand has formulated a three-stage policy on insurance sector liberalization. 
At the initial stage, began in 1995, Thailand started to open up insurance market to help create a more 
competitive environment and a better standard of ser vices through the invitation of applications for 
new insurance licenses, the first time since 1983. This resulted in the approval of 12 new life and 
13 new non-life insurers. 
Currently, Thailand is at the second stage. The Depa rtment of Insurance ( DOI), as the insurance 
supervisory authority is in the process of ame nding the current Life and Non-life Insurance Acts; 
facilitating insurance business operations in a more  competitive environment, while maintaining 
soundness and long term viability.  
One of the key areas is to propose higher foreign equity participation of up to 49 percent (from 
25 percent currently applied).  Along with this, the industry’s minimum required capital fund would 
gradually be raised to 500 and 300 million bath for life and non-life insurance companies respectively.  
In so doing, Thailand has also encouraged me rger among small insurers; whereby laws and 
regulations are to be reviewed to help strengthe n the competitiveness of local  insurance companies in 
transition to a more liberalized insurance market. 
The final stage is to remove barriers to market access for foreign insurers, which will be completed 
with full market liberalization where local and fo reign insurance business entities operate in Thailand 
at a level playing field. 
Paragraph 49
 
(Canada)   The requirement for all insurance premiu ms to be approved by the Insurance 
Commissioner seems overly onerous, and may delay the introduction of new products and hinder 
competition.  Considering recent and planned impro vements in prudential regulation by the 
Department of Insurance, is Thailand considering giving more pricing autonomy to insurance firms? 
Related to this, and given the Government of T hailand’s concerns over consumer protection, does 
Thailand have an insurance consumer ombudsman servi ce where consumers can independently raise 
complaints regarding policy premium levels?  WT/TPR/M/123/Add.1 
 Page 45 
 
 
 Answer:   Thai insurance market is not mature in terms of market practitioners and policyholders. 
Therefore, protection of policyholders’ interests and market stabilization are essential for future development.  
With regard to pricing, the Department of Insuran ce (DOI), as the insurance s upervisory authority, is 
doing a feasibility study for the establishment of a Rating Bureau to take care of premium rating. 
The DOI has also set up a Complaint Center where po licyholders, other interest parties or insurers can 
file their complaints on insurance related matters. Ea ch party may resort to the arbitration tribunal or 
the Civil Court if not satisfied with the result of the Complaint Center. Decisions made by the 
arbitration tribunal bind only the insurance company;  the policyholders could have a choice to lodge 
to the Court if they want to.   
Paragraph 50
 
(Canada)  Thailand offers tax incentives for citizens holding life insur ance policies from locally 
licensed firms, but not for holders of policies issu ed by branches of foreign firms.  Although Thailand 
reserves the right in its GATS Schedule of Specific  Commitments to maintain this discriminatory 
measure, and Thailand please indicate whether it has a prudential basis, or whether it is in place 
simply to promote the growth of domestic firms? 
(Chinese Taipei)   It is noted that life insurance premiu ms of up to 50,000 Baht annually are tax 
deductible for holders of insurance policies issued by locally licensed companies. However, similarly 
favorable treatment does not apply to holders of  policies issued by branches of companies 
incorporated abroad. We would urge  Thailand to consider removing th is restriction and thus conform 
to the principle of national treatment. 
Answer:   Branches, if licensed to op erate insurance business in Thaila nd, are subject to the same 
treatment as Thai insurance companies; a nd their acquired rights are guaranteed.  
Therefore, life insurance policies sold by a br anch of which license is granted by the Thai 
Government are entitled to the same tax privileg es as other locally established life insurers.   
(Canada)   Can the Thai government please provide info rmation on any shift of customers away from 
foreign branches to domestic firms since the ta x deductibility of life insurance premiums was 
increased to B 50,000? 
Answer:   As there is no such discriminatory treatment, shift of customers away from foreign branches 
to domestic firms, if any, should be caused by other factors such as consumer preference. 
Paragraph 51  
(Canada)   Can Thailand please advise whether the Department of Insurance requirements for 
domestic retention of reinsurance contracts are cons istent with its GATS commitments for National 
Treatment?  If these are prudential measures, c an Thailand please explain their prudential basis? 
Answer:   Insurance firms are risk-taking financial institutions. A reasonable amount of retention 
should be kept and managed within the country. 
The DOI and the General Insurance Association, through this measure, have encouraged insurance 
companies to utilize their full capacity in risk  underwriting depending on business strategy and 
specialty of each firm.   WT/TPR/M/123/Add.1 
Page 46  
 
 (ii) Telecommunications  (See attachment 2) 
(iii) Transportation 
Paragraph 70
 
(United States)   Could Thailand provide any examples when the RTG cabinet approved majority 
foreign investment for List 2 transportation busin esses? What are the procedures for such an 
approval? 
Answer:   In practice the Department of Business De velopment never received any application from 
foreign services suppliers in the transportation sector. 
The procedures for such an approval is to fill out th e application form available at the Department of 
Business Development. 
The DBD will propose the application to the Mini ster of Commerce who will give permission with 
the approval of the Cabinet. Once the Cabinet appr oves, the DBD will notify the applicant and issue 
the license within 15 days. 
(United States)  Are there any specific transportation businesses (e.g., trucking/ground freight, 
maritime, etc.) that are more or less likely to  receive cabinet approval for majority foreign 
investment? 
Answer:   Not at the moment except for Australian investors in supporting services for maritime 
transport (CPC 745**) (excluding cargo handling) 
Paragraph 73  
(Hong Kong, China)   We are pleased to note from the Secret ariat Report that Thailand is reviewing 
its bilateral maritime agreements to facilitate removal of its GATS MFN exemptions, and the cargo-
sharing clauses in the China and Vietnam agreemen ts were abolished in 1995 and 1999 respectively. 
We appreciate Thailand’s efforts in eliminating th e MFN exemptions. With the abolition of the cargo-
sharing clauses in the China and Vietnam agreements , would Thailand consider formally terminating 
the respective two MFN exemptions in its services schedules? 
Answer:   Thailand is considering taking the cargo-shar ing clauses out of the MFN exemption list. 
Nevertheless, this is the matter that is subject to negotiations.  
Paragraph 79  
(United States)   The United States, European Union, and others have developed CRS Codes of 
Conduct.  Is Thailand using any of these as examples from which it is working?  
Answer:   The Council of State is deliberating on the CRS Code of Conduct bill to see if it overlaps 
with the Electronic Transactions Act B.E. 2544 (2001). 
(United States)  Has there been a public comment process to allow CRS owner firms to provide 
input? 
Answer:   Not at this stage.   WT/TPR/M/123/Add.1 
 Page 47 
 
 
 (United States)  Could Thailand elaborate further on the draft CRS Code of Conduct? 
Answer:   The draft code follows the EU and th e US regulation on a Code of Conduct for 
computerised reservation system. 
(iv) Tourism 
Paragraph 80  
(United States)   Which entity, the Ministry of Tourism and Sports or the T ourism Authority of 
Thailand (TAT) is responsible for developing and im plementing laws and policies related to tourism 
services? 
Answer:   The Ministry of Tourism and Sports. 
Paragraph 81  
(United States)   Could Thailand provide further details on the hotel grading system being introduced 
and how that system has been developed? Have existi ng foreign-equity hotels been involved in the 
process? Will this system have investment exclusi ons (e.g., no foreign investment in hotels below a 
certain number of "stars")? 
Answer:   Thailand’s hotel grading system was comp leted in 2002. The grades are assigned according 
to the hotel’s standards of construction, facilities,  maintenance and services. There are 5 levels of 
certification using the symbol of star arranged in an ascending order.  One star signifies the basic standard. A five-star hotel is of the highest standard.    
Paragraph 82
 
(United States)   Could Thailand elaborate further on the measures now being considered by the 
Ministry of Tourism and Sports with respect to a llowing foreign ownership in travel and guided tour 
agencies and access for foreign-language tour guides? 
Answer:   Tour guide is one of the 39 professions reserv ed for Thais. And foreign ownership in travel 
and guided tour agencies is subject to Foreign Business Act 1999. 
REPORT BY THE GOVERNMENT 
I. OVERVIEW 
II. ECONOMIC ENVIRONMENT 
(c) Trade Environment Paragraph 14
 
(Canada)   Could the Thai Government please elaborate on its strategies to increase exports by 40% 
to secondary and new markets and, in particular, can it provide some insight into what it hopes will 
constitute the targeted 20% in crease in exports to Canada? WT/TPR/M/123/Add.1 
Page 48  
 
 Answer:   We are currently employing bilateral trade cooperation strategies, sending trade missions to 
as well as inviting incoming trade missions from new market destinations. Additionally, we support 
the establishment of new joint business councils. 
Paragraph 22
 
(Canada)   Has the Thai government seen the expecte d recovery of its tourism economy given the 
reversal of the SARS crisis? 
Answer:   Thailand sees recovery in the last quarter of the year as the number of incoming tourists 
from Hong Kong, Singapore, Malaysia, South Kor ea and Taiwan rise. The number of incoming 
tourists from Europe particularly German, the UK,  the Netherlands and Scandinavian countries is 
likely to rise towards the end of the year. 
III. PROGRESS ON ECONOMIC POLICY REFORM (c) Fiscal Policy Paragraph 36
 
(Canada)  Can the Thai Government elaborate on the operation of its "revolving Village Fund"? 
Answer:   The Thai Government launched a micro- credit scheme, known as the Village and Urban 
Revolving Fund, in July 2001.  The public organizati on is designed to allocate money to offer loans to 
rural villages and urban communities.  As a local funding source, the Village and Urban Fund scheme 
provides a revolving fund of 1 million Baht to each of more than 70,000 villages nationwide.  The amount, not more than 80,000 million Baht, is provided by the Government Savings Bank. 
The Village and Urban Community Fund have its headquarters in Bangkok or nearby province.  
Members of the Fund are allowed to seek loans fro m the revolving fund for use in developing their 
occupations and finding ways to create and increase income.  The money may also be used for public 
services in each village and urban community.  The in terest earned from the loans or donations to the 
fund will be used for public services of the village or  urban community involved.  From July 2001 to 
February 2003, the loan facility was allo cated and transferred to 74,286 villages. 
(d) Trade and Investment Policy 
Paragraph 42
 
(United States)   Could the representative of Thailand tell us  whether the texts of its FTAs are or will 
be documents that are available to the public? If so, please specify, when and how these documents 
will be available. If not, could the representative of Thailand provide detailed descriptions of any 
FTAs that have been concluded and FTAs that are currently under discussion? In particular, for 
FTAs that have been concluded, if an agreement has b een reached with respect to the elimination of 
tariffs on certain items, but other items are still subj ect to tariffs, could the representative of Thailand 
explain the process by which other tariffs will be eliminated? 
Answer:   The texts of our FTA negotiations are not ye t available as they are still at the discussion 
stage. We have signed a framework agreement with  Bahrain, India, Australia, and Peru; and ASEAN 
as a group has signed a framework agreement with China and India. The key principle we employ in 
the process of FTAs is to include substantially all the trade as is consistent with Article XXIV of the  WT/TPR/M/123/Add.1 
 Page 49 
 
 
 GATT 1994. Once these negotiations have been complete d, we will submit relevant documents to the 
WTO. 
IV. TRADE POLICY AND TRADE-RELATED POLICY DEVELOPMENTS 
(b) Import System Paragraph 55
 
(United States)   Could the representative of Thailand pr ovide a timetable for the completion of the 
tariff restructuring process? 
Answer:   The restructuring process is expected to be completed by 2004. 
(c) Customs procedures 
Paragraph 57  
(Chinese Taipei)   As indicated in the report of the go vernment, Thailand has introduced clear 
customs appeal procedures, which cover a variety of  customs-related areas, including one described 
as the quantity of imported goods. We would li ke to know under what circumstances an importer 
could appeal against customs determination on the basis of the "quantity of imported goods". 
Answer:   In the case of discrepancy or inconsistency between declared an actual quantity of imported 
goods. 
(e) Agriculture 
Paragraph 60  
(United States)   It is stated that under the "One Tambon One Product" scheme (OTOP), farmers can 
produce goods using local materials to sell products  for additional income. Could you please provide 
more information about this program? What type of assistance is provided under the scheme and 
what are the eligibility criteria for this assistance? 
Answer:   The OTOP scheme has been devised to  achieve the objective of assisting local 
communities, mostly in rural areas, to develop unique products with high marketability using indigenous knowledge, for example, silk, fermente d wine, herbal tea, preserved fruit etc. The 
government will provide technical and marketing assistance and also processing know-how, on a 
demonstrational basis. At present, 2,516 groups have been established producing 80 different 
agricultural product items. 
Paragraph 61
 
(Japan)   Please provide a list of those agricultu ral products which are applied under "the Good 
Agricultural Practice (GAP)" method by using the data of the current productivity and the targeted 
productivity. Is the standard, which was introdu ced by the National Bureau of Agricultural 
Commodity and Food Standards (NBA CFS), applied to import products? If so, please describe its 
conformity with the WTO Agreements w ith regard to every relevant agreement. 
Answer:   The list of agricultural products applied unde r "the Good Agricultural Practice (GAP) is as 
follows: WT/TPR/M/123/Add.1 
Page 50  
 
 All food crops, duck, chicken, swine, dairy cow,  honeybee, and organic agricultural products. The 
standard is currently applied on a voluntary basis for export products. 
More information can be accessed from the NBACFS website: www.acfs.go.th 
(f) Financial Services 
Paragraph 74
 
(Canada)   Thailand notes that it is planning to liberalize the licensing regime for mutual fund 
management in the near future.  Can Thailand pl ease indicate whether it will provide foreign fund 
managers with National Treatment regarding this liberalization? 
Answer:   Yes, under the new licensing regime for mutual  fund and foreign fund will be provided with 
national treatment. 
Paragraph 80  
(Canada)  Life insurance firms in other economies ha ve faced unhealthy pressure on the soundness of 
their operations due to the need to pay guaranteed  rates of return on customer policies when market 
conditions turn sour and interest rates drop (i.e. the firms’ investment and premium income cannot 
cover the amount needed to pay policyholders).  Can Thailand please confirm whether it imposes a 
required rate of return on life insurance firms?  If so, can Thailand please explain the rationale 
(prudential or other wise) behind this policy? 
Answer:   The Department of Insurance has taken necessary steps to reduce pressure on negative 
interest spread to insurance companies.  
On the one hand, the interest rat es have been decreasing to 2%-6% compared with the range of 4%-
6% applied the previous year -- the first reduction from 6% set for life premium calculation. Insurance 
companies can quote at any rate within the rang e depending on its business strategy and market 
situation.  
On the other hand, DOI reviewed the investment regul ation of the insurance companies with a view to 
promoting stability, diversification and yield enhanc ement at an acceptable risk level. For example, 
new types of investments and financial instruments are allowed/expanded to create greater flexibility 
in asset management. 
(j) Intellectual Property Rights 
Paragraph 103-105  
(United States)   While the enforcement efforts of the RTG are to be certainly acknowledged and 
welcomed in the area of anti-piracy activities agains t commercial/retail scale copyright infringement, 
are similar efforts contemplated, with the co mparable human and financial resources allocated by the 
RTG to combat widespread trademark counterfeiting? 
Answer:   We lend equal importance to the effort to combat copyright and trademark infringements.  WT/TPR/M/123/Add.1 
 Page 51 
 
 
 Paragraph 105  
(Hong Kong, China)  The Government Report indicates that the number of pirated goods confiscated 
has increased from 2 million pieces in the whole of 2001 to 4 million pieces just in the first six months 
of this year. Is this the result of increased piracy activities or th e concerted efforts of the Thai 
authorities following the conclusion of a MOU on Enforcement of IPR between 13 government 
agencies in end 2002? 
Answer:   This is definitely the result of increased  anti-piracy efforts by the Thai authorities. 
(United States)   When does the RTG anticipate final e nactment and implementation of the proposed 
draft legislation on Optical Disc Manufacturing Control? 
Answer:   The RTG has made it s best effort to propose the draft legislation on Optical Disc law to the 
Parliament. On 9 September 2003, the Cabinet of Ministers approved the draft bill on CD production 
control and already submitted the draft legislati on to the Parliament. The draft Bill is under the 
parliamentary process and is expected to be passed in the near future. 
Paragraph 110  
(Japan)   The Government Report states that Thailand has revised and enacted several laws to comply 
with the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPs) and Protection 
of Plant Varieties Act came into force in Decembe r 1999. Regarding the implementation of this Act, 
please indicate: 
 (a) the name of the plants to be protected as the right of the upbringing person, the 
number of varieties that have been registered, and the number of those which have been filed by foreign applicants;  
 (b) the names of the plants that are targeted  for protection in the future, and the schedule 
of the enlargement plan of protection; and  
 (c) the scope and conditions of th e protection of plant varieties. 
Answer:   It is in fact our policy to make know to the public names of the plants under protection. 
However, we are at an early stage of implementati on of the law in question, which has prevented us 
from making available such names at this juncture. 
(k) Investment 
Paragraph 111
 
(Canada)   Canada notes with interest the lack of forei gn equity restrictions in the manufacturing 
sector. Can the Thai Government ever envision a similar situation for its services sectors? 
Answer:   The answer is in the positive. It is a matter of time and sequencing. 
Paragraph 112  
(Chinese Taipei)   The Board of Investment (BOI) is poised  to become more proactive in targeting 
investors in order to improve both the quality and qu antity of investment. It would be appreciated if WT/TPR/M/123/Add.1 
Page 52  
 
 Thailand could inform us of the sectors/industri es it intends to attract foreign investment at the 
present time and details of the related investment incentives it might offered. 
Answer:   At present, the BOI policies focuses on 5 target industries namely 1) agro-industry, 
2) fashion industry, 3) automotive and parts 4) electronics, electrical appliances, and ICT, and 
5) value-added services.  Details of related inv estment incentives can be found at our website:  
www.boi.go.th
 
(Switzerland)   You mention that local-content and export requirements as part of investment 
incentives were abandoned in 2000, and the Secretaria t mentions in its report that "most local-
content requirements in manufacturing were eliminated".  In retrospect, are you of the view that such 
instruments were of any positive effect, or turned  differently, has the effectiveness of economic and 
investment policy been reduced aft er abandoning such instruments? 
Answer:   After most local content requirements have b een abolished, there were some impacts on the 
effectiveness of our economic a nd investment policy.  However,  this does enhance our domestic 
investors to become more competitive and, most of all, majority of foreign investors continue using 
our local raw materials in their production since they are more cost effective. 
V. REGIONAL TRADE ARRANGEMENT Paragraph 120
 
(Canada)   In the event that multilateral trade talks do  not resume in a timely manner, what does 
Thailand see for the future of its national trade st rategy?  Specifically, wh ich existing arrangements 
will receive the most emphasis or, will Thailand  be seeking new arrangements (regionally or 
bilaterally)? 
(Switzerland)   We note that "Thailand believes that bilateral/regional trade arrangements are 
complementary to the multilateral trade goals", and that Thailand is expandi ng the scope of its 
bilateral and regional agreements either indivi dually or through ASEAN. While we are aware and 
appreciate that Thailand is an active supporter of th e WTO process, is there a view developing in the 
Thai government, particularly after Cancun, in the sense that the significance and utility of bilateral 
and regional approaches may be rel atively increasing at the expense of the multilateral trading 
system? 
Answer:   We see regional approach to trade libera lization as complementary to the multilateral 
approach and view them as having equal and mutual  significance. We are currently engaged in many 
regional and bilateral negotiations to  which we attach equal importan ce. However, the most developed 
and advanced regional arrangement that we currently have, in terms of progress  in implementation, is 
the AFTA (ASEAN Free Traded Area).  
Response to EU Questions  
Government procurement  
Government procurement is vital for ensuring that the state utilizes government spending as 
efficiently as possible and that the market is not undesirably curbed. The EC has had good gains from 
using various tools in this field and should like Thailand to have similar gains. Consequently, the EC 
should like to pose the following questions:  WT/TPR/M/123/Add.1 
 Page 53 
 
 
  - Taking into account the highly developed nature of the Thai economy and the fact 
that she already participates in the WTO Working Group on Transparency in Government Procurement, when does Thaila nd think that she will be joining the 
GPA? 
Answer:   Thailand is now in the process of government  procurement reform which aims to achieve 
the international standard of government procurem ent. The major concern is the implementation of 
transparency in government procurement as well  as the other principles of value for money, 
accountability and due process, etc. 
 - Do the regulations, and in case which, for procurement activities allow for national 
 preferences of Thai products, contractors and consultants?  
Answer:   Yes. 
 - What is the amount of government proc urement contracts open annually to foreign 
bidders and what percentage is this of the total contracts? Further has the Cabinet 
resolution of October 2002 requiring all govern ment agencies to maintain their own 
web-sites containing procurement inform ation and implement e-Auction been 
effectively enforced? What percentage of th e agencies have actually been utilising e-
Auction and what kind of procurement info rmation was made available on the web-
site and for how long? 
Answer:   There is no information recorded for the amount of government procurement contracts open 
annually to foreign bidders. The Cabinet reso lution of October 2002 requiring all government 
agencies to maintain their own web-sites cont aining procurement info rmation and implement 
e-Auction has been effectively enfo rced since then. All government ag encies in central administration 
have implemented e-Auction as an alternative proc urement method. The procurement information is 
disclosed through the web-site of www.gprocuremen t.or.th since 2001. The procurement information 
provided includes related law and regulations concerning procuremen t procedures, advertising for 
procuring activities of e-auction.   
 - What kind of competition law will be applicable for public services? 
Answer:   There is no provision under the current  Competition Act 1999 which addresses government 
procurement.  
 - Finally, does the state agencies and ent erprises of Thailand currently carry out 
counter-trade policy. If so, please indicate under which regulation and according to which offset definition as well as the percen tage of the contracts that are yearly 
subject to counter-trade and for which total amount. 
Answer:   Countertrade is but one of Thailand's policy op tions. Under the Office of the Prime Minister 
Regulation on Countertrade, B.E. 2543 (2000) , a countertrade transaction is required on all 
procurement of foreign goods and services by government agencies and state enterprises with value 
over 300 million Baht. The value for counterpurchase of Thai products is set to at least 50 percent of 
the imported price. To date, 12 counterpurchase agre ements have been signed, the total value of 
which is 8,646.38 million Baht. 
 - Do the regulations, and in case which, for procurement activities allow for national 
preferences of Thai products, contractors and consultants? WT/TPR/M/123/Add.1 
Page 54  
 
 Answer:   The Cabinet resolution for government procur ement requires local preference for industrial 
products specified by the Ministry of Industry. If such local products are not available, government agencies can procure the products freely. 
 - What is the amount of government proc urement contracts open annually to foreign 
bidders and what percentage is this of the total contracts? Further has the Cabinet 
resolution of October 2002 requiring all govern ment agencies to maintain their own 
web-sites containing procurement inform ation and implement e-Auction been 
effectively enforced? What percentage of th e agencies have actually been utilising e-
Auction and what kind of procurement info rmation was made available on the web-
site and for how long? 
Answer:   Public sector reform in FY 2002 has resulte d in major changes to government structures 
and responsibilities, in this process public procur ement management has been transferred to the 
Ministry of Finance, which plans to develop a P ublic Procurement Management Master Plan by the 
end of 2003. This will be used as a framework to improve government procurement as a whole. 
We have taken steps to improve efficiency with  the aim of increasing tran sparency and open and 
effective competition. In the area of e-Auction,  a Cabinet resolution required that all government 
agencies maintain their own websites containing procurement information. These agencies must 
purchase at least one product list using e-Auction by December 2002. 
Telecommunication services
 
 - When will the Royal Thai Government decide on the setting up of the National 
Telecommunications Commission (NTC) and what is the precise path to achieving full liberalization in 2006? 
 - Will Thailand’s NTC have the power, under the Telecommunications Business Act 
2001, to redress all anti-competitive practi ces or is this task left to overall 
competition rules and regulator and what  are the next steps foreseen for the 
establishment of the new regulator? 
 - What is the link between those interconnection rules foreseen in the 
Telecommunication Business Act 2001? And will there be a systematic regulation of dominant suppliers for interconnection under these rules or under the Telecommunications Business Act 2001? 
Answer:   See attachment 2. 
Financial service
 
 - Could Thailand kindly explain the criteria used by the Ministry of Commerce to 
derogate to the caps on foreign shareholdi ng for non-brokerage securities activities? 
And when will the foreign investment cap be raised again to 49% And why is there 
still a cap on foreign ownership at all? 
 - In various service sectors Thailand refers to the Foreign Business Act of 1999. Does 
Thailand currently have plans to ease the curren t restrictions set out by the law and 
to revisit the list corresponding to the various business activities?  WT/TPR/M/123/Add.1 
 Page 55 
 
 
 Answer:   Under the Foreign Business Act of 1999, the list corresponding to the various business 
activities under the Foreign Business Act of 1999 will be revised annually. 
Transportation and distribution  
Liberalisation of transportation and distribution is ext remely vital for an economy as a whole. It is 
one of the nerves of a strong trading economy, simp ly because intensive competition will result in 
lower transport cost to the benefit of all sectors in th e economy. In this light, the EC should like to ask 
the following questions:  
 - How many people work in the distributi on sector, what has been the evolution in the 
last years and how much of the FDI attrac ted by the country in the last years has 
been in the distribution sector? 
Answer:   No systematic compilation of statistics is available. On top of that Thailand has a huge 
informal retailing sector. But based on the Office  of Labour Standard Development of Labour 
Protection and Welfare, in 2002 there were 152,175  registered business establishments in wholesale 
and retail trade, repair of motor vehicles (seg ments of distribution) employing a total of 
1,377,611 people. 
The past years have seen the rising business activiti es in modern trade and logistics and distribution 
management especially third party logistics servic es provided by both local and foreign firms.  
Based on the Board of Investment Database, the Board last year approved 3 projects worth 
720 million Baht. 
 - What is Thailand’s assessment of the effects of the distribution sector in her overall 
economic growth, employment and social development, and also in other economic 
sectors like construction, transport, com puter services, education and professional 
training? 
Answer:   There is rising awareness.  Universities and other educational institu tions have developed a 
course on logistics and distribution management which has proven very popular.  
The Government is allocating a budget for infrast ructural development such as the setting up of 
Central Distribution Center, Truck Terminal, Logi stics Database House and Bar Code and Tracking 
System. 
 - Thailand is undertaking reform of its airport activities (under AOT). Can Thailand 
give information as to the timetable and exten t of the foreseen privatisation? Are the 
reforms in this area foreseen to cover ground-handling services and airport management operations? And in relation to the former question: What are the 
current conditions for foreign companies that  want to set up dedicated (independent 
third party) ground handling operations in Thailand? 
Answer:   Airports of Thailand (AOT) is planning a par tial privatization by selling 30 percent stake in 
an initial public offering (IPO) scheduled in Februa ry and April 2004 to raise up to 15 billion bath 
(375 million USD).  
 - Does Thailand have a cargo sharing agreements or measures in place for 
international maritime transport. WT/TPR/M/123/Add.1 
Page 56  
 
 Answer:   Thailand is about to set up a national shipping liner. 
 - Thailand has announced that the port sector  is being reorganised and privatised. Will 
this imply that the restrictions and limitati ons placed on foreign ownership by the 
Foreign Business Act are also revisited? 
Answer:   They may be revised. 
 - How are the auxiliary activities as maritime agency services and customs clearance 
services affected by these reform plans?  
 - What is the existing, recently implemen ted and planned legisl ation applicable to 
retailing services? 
Answer:   At present, Thailand does not have specific legislation that deals directly with retail 
services. However, there are other related laws, such as the Town Planning Act B.E. 2518 (1975) and 
the Competition Act. The Town Planning Department  has implemented a regulation on zoning to curb 
the expansion of large stores in congested areas. 
 - Thailand is in the process of implementi ng a ‘Cosmetics Act’ that will provide further 
requirements on labelling and presentation of health certificates. What will these 
requirements be and for what produc ts will these have economic effect? 
Answer:   The requirement is for the text to be translat ed into Thai. The label must be factual and not 
misleading about the qualities of the cosmetics, whic h will ensure safety of the consumer as well as 
genuineness of the product. Further details ca n be accessed from:  www.fda.moph.go.th/fda-
net/html/product/cosmetic/cosme tic/page/index-en.htm  
Tourism
 
The EC understands that tourism is of some im portance for Thailand’s economy. Consequently, the 
EC should like to ask the following questions:  
 - How many people work in the tourism sect or and what has been the evolution in the 
last years? And what is Thailand’s assessmen t of the effect of the tourism sector in 
overall economic growth and employment, and in particular in other economic 
sectors like construction, transport, com puter services, education and professional 
training? 
Answer:   No systematic compilation of statistics is available. But based on the Office of Labour 
Standard Development of Labour Protection and Welfare, in 2002 there were 25,003 registered 
business establishments in hotels and restaurants (a se gment of tourism industry) employing a total of 
405,291 people. The Tourist Authority of Thailand estimates the total employment at 1,473,898 for 
the whole sector (including segments like transpor t for tourist purposes, travel agencies etc.). 
 - Does Thailand have plans to promote the tourism sector i.e. plans for improving 
professional education and training related to the tourism sector and what measures 
would they include to ensure non-discrimination of foreign service suppliers? 
 - What legislation is applicable to tour  managers and tourist guides and what does it 
entail? Does Thailand have plans about re ducing or eliminating discrimination of 
foreign service suppliers in these fields?  WT/TPR/M/123/Add.1 
 Page 57 
 
 
 Answer:   The Travel Agency Business and Guide Act B.E. 2535 (1992).  
It is important that tourism is carried out in a sustainable manner, in order to ensure that the very 
fundament for tourism itself is not eroded or disrupt ed. In this light, the EC should like to ask: 
 - What is Thailand’s approach to the regul ation of tourism-related aspects of general 
interests such us environment, wildlife, urban planning, etc? 
 - What is Thailand’s viewpoint about the tourism sector and promotion of local 
cultures, development of water supply and sanitation services, and public security? 
Answer:   Thailand has not yet had a coherent package of legislations on tourism. The issues related to 
public security, health and sanitation and environmenta l related issues are addressed in different laws 
to ensure that tourism development meets th e needs of visiting tourists and local hosts. 
Trade in goods  
It is vital to ensure a stable and not excessively hi gh tariff regime in order to ensure that trade and 
development is not disrupted by shocks and that th e evolution and reform of economic sectors is not 
undesirably halted due to protection of truly short-t erm interests of a few industries. The information 
collected by the EC on Thailand’s tariff regim e gives the following impression. Thailand’s MFN 
tariffs are high by regional standards with average MFN tariff rate at 27.2% for industrial goods and 
at 33.1% for agricultural goods. Currently 26.1% of  the tariffs are unbound and the bound rates often 
considerably higher than applied rates, which impl ies a high degree of unpredictability in tariffs. 
Some products are subject to high tariff peaks. In  many cases actual paid tariffs seem to be 
extenuated with high excise duties applie d to both domestic and imported goods. 
 - How does Thailand assess the impact of th e comparably high average tariffs on her 
development?  
 - How does Thailand assess the impact of her tariff peaks on her development and the 
stability of trade? Further, what is her assessment of the impact of very often rapid 
changes in her applied tariffs which have sometimes been more than doubled for 
some products? 
 - When is Thailand planning to increase the number of bound tariff lines and lower its 
MFN tariff protection?  
Answer:   See answers to (2) Measures directly affec ting Imports (ii) Tariffs, Paragraph 19 and 22. 
During the last TPR of Thailand WTO members took particular interest in Thailand’s " import price 
"uplifts" and their elimination in the course of  Thailand’s adoption of the Customs Valuation 
Agreement.  
 - Could Thailand give details as to the current status and application of import price 
"uplifts" on i.e. completely-built-up vehicles?  
Answer:   See answers to (2) Measures directly affecting Imports (i) Customs procedures, 
Paragraph 14. WT/TPR/M/123/Add.1 
Page 58  
 
  - The report from the Government of Thailand states, that Thailand has also adopted 
clear customs appeal procedures which cover a variety of customs-related areas, 
including valuation, tariff classification, amount of duty payable, origin of goods and 
quantity of imported goods. Could Thailand pr ovide information as to the workings 
and establishment of Thailand’s appeal procedures?  
Answer:   See answers to (2) Measures directly affecting Imports (i) Customs procedures, 
Paragraph 13. 
Thailand’s import licensing procedures appear cu mbersome. The report of the WTO Secretariat 
appear to validate the EC impression that Thailand has not notified its relevant licensing legislation 
nor provided replies to the Import Licensing Ques tionnaire under Articles 1.4(a) and 7.3 of the 
Agreement.  
 - When is Thailand planning to notify the relevant information to the WTO?  - How does Thailand assess the impact of its cumbersome import licensing procedures 
on its own development? 
 - The EC understands that licensing requirements based on infant industry protection 
are applied to various goods such as polis hed marble and granite construction stone 
and used vehicles for the transport of 30  or more persons. Considering that the 
current Thai legislation applicable dates back to 1978 and that Thailand’s domestic industry is complaining about the measures, when is Thailand planning to eliminate the non-automatic licensing requirements i.e. for polished marble and granite?  
Answer:   See answers to (2) Measures directly aff ecting Imports (iii) Non-tariff border measures, 
Paragraph 46. 
Thailand has been a strong advocate for eliminati ng subsidies. The report of the WTO Secretariat 
addresses the Thai utilisation of "tax cards" which domestic products are eligible for if they are 
exported and which can be used by the holders for payment of taxes and duties.  
 - Can Thailand provide further explanation of tax cards and this program’s 
relationship with the rules and obligations  under the WTO and is the programme to 
be included in its Subsidy Notificati on based on Article 25 SCM Agreement? 
Answer:   Tax rebate rates for the tax card or the so- called tax certificates are calculated from 
imported duties of physical inputs incorporated in  exported products which complies with Annex I(1) 
and Annex II in SCM Agreement. 
Thailand’s trade strategy
 
Bilateral, regional and global trade liberalisation a re all vital tools for promoting prosperity, growth 
and development to the benefits of the world at  large. The EC considers that the WTO and 
multilateral liberalisation is the most certain way for promoting global interests for industrialised 
countries and developing countries at large.  
 - How does Thailand judge the relative importance and weight of bilateral/FTA 
policies and further development of the WTO system in terms of its own trade and 
development needs?  WT/TPR/M/123/Add.1 
 Page 59 
 
 
 Answer:   See Thailand Trade Policy Review Presentation section on Free Trade Agreements. 
Though Thailand is a developing country, a number of  other developing countries are much worse off 
than Thailand, who has enjoyed the benefits of global  trade on a more or less rapid and safe path of 
development. 
 - How does Thailand judge  the possibilities for these less developed countries to 
participate in global trade and to benefit from the same development as Thailand? 
 - How does Thailand perceive the differen ces between the developing needs of these 
countries and those of a country as Thailand and how does Thailand believe that the different needs could be most optimally dea lt with in regional as well as global trade 
arrangements? 
Answer:   We are very much concerned with the situa tion in other less developed countries; as such 
we remain supportive of the initiatives to opera tionalize special treatment for these countries. 
However, this must be implemented in complianc e with WTO principles of enabling clause namely 
generalized, non-reciprocal and non-discriminatory basis. 
Response to Brazil’s Questions
 
I) INTELLECTUAL PROPERTY 
1. What products are eligible for geographical indications protection? 
Answer:   All products. 
2. Did Thailand undertake any evaluation of th e economic impact of exte nding the protection of 
article 23 of the TRIPS Agreement to products other than wines and spirits? 
Answer:   Yes, we did. 
II) TECHNICAL BARRIERS 
1. How is the standardization system organized in  Thailand? To what extent does the Thai 
government participate in the standardization process? 
Answer :  Please see attachment – Country Paper of Thailand (Standardization/Conformity 
Assessment Infrastructure, and TBT Related Issues) 
2. Are there any products which, under Thai t echnical regulations, are subject to specific 
environmental requisites as regards manufacturing processes? 
Answer:   The list of compulsory standards re: environment is as follows: 
2.1 TIS 341-2543 (2000) Motorcycle exhaust muffler 
2.2 TIS 1295-2541 (1998) Heavy duty diesel engine d vehicles: safety requirements; emission 
from engine, level 3 
2.3 TIS 1650-2541 (1998) Motorcycles: safety requi rements; emission from engines, level 4 
2.4 TIS 1870-2542 (1999) Gasoline engined vehicl es: safety requirements; emission from 
engine, level 6 WT/TPR/M/123/Add.1 
Page 60  
 
 2.5 TIS 1875-2542 (1999) Light duty diesel engined vehicles: safety requirements; emission 
from engine, level 5 
2.6 TIS 2066-2544 (2001) Showers: environm ent requirements; water –savings 
2.7 TIS 2067-2544 (2001) Faucets for sanitary war es: environment requirements; water – 
savings 
2.8 TIS 2134-2545 (2002) Room ai r conditioners: environment requirements; energy 
efficiency (to be enforced  in the near future). 
3. How is the accreditation system organized in  Thailand? How does the central government 
participate in the certification process? To what exten t Supplier´s Declaration of Conformity (SDoC) 
is used as a conformity assessment procedure? 
Answer:   Information on Thailand’s accreditation syst em can be found on the Thai Industrial 
Standards Institute website at www.tisi.go.th/nac/nac2 e.html
. 
Suppliers’ Declaration of Conformity (SdoC) is not used as a conformity assessment procedure in 
Thailand as the product liability law has not been established yet. 
III) MARKET ACCESS 
1. On page 23 of the Secretariat Report it is  mentioned that there are some "non-tariff 
incentives" under the AICO Agreemen t. What are those incentives? 
Answer:   Exporting companies under the AICO scheme will not be subject to quota or import 
licensing of importing countries’. 
2. On page 32 of the Secretariat Report it is st ated that there are a number of non-tariff border 
measures for "infant industry" protection. Could further information be provided regarding those 
measures? 
Answer:   Thailand has no intention to impose further non-tariff border measures for "infant industry" 
protection. As for the only remaining problem on ma rbles, the Department of Foreign Trade will hold 
a meeting next week to consider the matter, incl uding the liberalization of markets for marbles and 
granite. 
3. On page 36 of the Secretariat Report it is men tioned that 26.1% of Thai's HS seven-digit tariff 
lines are not bound. Those lines comprise salt, min eral fuels, fertilizers, pulp of wood, transport 
equipment, rubber products, iron and steel. Many of them are important inputs for agriculture and 
industry. Have the applied tariffs on those products changed often in the recent years? 
Answer:   The applied tariffs for the above-mentione d products have not changed often in recent 
years. More details on Thailand’s tariff rates can be downloaded from the WTO IDB database. 
4. Are there any criteria for determining wh ether a product should have an "ad valorem" or a 
"non-ad valorem" tariff? 
Answer:   Whether an "ad valorem" or a "non-ad valorem"  tariff is being collected is specified in the 
Customs Tariff Decree B.E. 2530 (1987).  WT/TPR/M/123/Add.1 
 Page 61 
 
 
 IV) SERVICES 
1. What is the status of the current ne gotiation process in ASEAN mutual recognition 
arrangements for professional services? 
Answer:   ASEAN has agreed to finalize the MRA’s fo r architecture and engineering professions by 
August 2004.  It is also in the process of expandi ng the coverage of ARA' s to other areas and has 
agreed to complete ARA's for qualifications in all major professional services by 2008 as recommended by the High Level Task Force. 
2. ASEAN members are increasingly pursuing bila teral negotiation with non-member states and 
other regional inter-governmental organizations. In which of these agreement s trade in services is 
negotiated? 
Answer:   Trade in services negotiation is included in  most agreements. The degree of commitment 
made, however, is subject to the negotiating parties’ discretion. 
V) GOVERNMENT PROCUREMENT 
1. Concessions are treated in the government  procurement universe? Are foreign companies 
allowed to participate in bids concerned with concessions? 
Answer:   The Cabinet resolution for government procur ement requires local preference for industrial 
products specified by the Ministry of Industry. If such local products are not available, government 
agencies can procure the products freely. 
2. Does Thailand use the Built Op erate Transfer (BOT), or similar contracts, as a purchasing 
method? Are Built Operate Transfer (BOT), or similar contracts, included in the coverage of trade 
agreements Thailand is negotiating or already takes part? 
Answer:   As specified in the Regulations of the Prime Minister’s Office on Procurement, both 
concession and Built Operate Transfer are not to be included in the coverage of trade agreements in 
government procurement. 
3. How is sub-central government procurement t reated in international agreements Thailand is 
negotiating or already takes part? 
Answer:   There is no particular sub-central govern ment agency responsible for international 
agreements in government procurement. Both centr al and provincial administrations in Thailand are 
under the same regulations of the Prime Minister’s Office on Procurement. That is, they are to be 
treated similarly in international agreements Th ailand is negotiating or has already taken part. 
4. How is treated public enterprises procurem ent in international agreements Thailand is 
negotiating or already takes part? 
Answer:   Public enterprises are allowed to set their own regulations concerning procurement 
activities, including those under international agreements. 
5. Relating to paragraph 62 of the Secretariat Report, what kind of countertrade is used? 
Answer:   Please refer to the answer to EC’s question on GPA. WT/TPR/M/123/Add.1 
Page 62  
 
 6. Are there any eco-labeling or eco-audit off sets in the Thailand government procurement 
regulations and laws in the central and sub-centr al level that may be used in government 
procurement? If affirmative, please indicate its  legal provisions and examples of their use. 
Answer:   Currently no. 
7. Regarding paragraph 57 of the Secretariat Repor t, are there different deadlines for tendering 
and delivery in e-Auctions? 
Answer:   Currently no. 
8. How do challenge procedures work for foreign companies allowed to participate in Thailand 
bids? 
Answer:   The Cabinet resolution for government procur ement requires local preference for industrial 
products specified by the Ministry of Industry. If such local products are not available, government 
agencies can procure the products freely. 
VI) IMPORT PROHIBITIONS, RESTRICTIONS AND LICENSING 
1. Please provide further information on the wa y the "gold card" system, mentioned in page 33, 
works. What are the criteria com panies have to meet in order to be granted such a preferential 
treatment? What kind of treatment is granted to  importers non-participant of the "gold card" system? 
Answer:   Among the necessary qualifications for "gold car d" applicants are a legal person status, a 
paid up registered capital of at least 5 million Baht, and a minimum of three-year experience in 
imports or exports. Detailed information can be found on the Thai Customs Department website at 
www.customs.go.th/TaxPrivilege/Tax Privilege6/TaxPrivilege6.jsp
 
2. Is there any kind of register required from  Thai importers as regards import licensing? 
Answer:   Normally, no registration is required, except for importers of certain products such as food, 
drugs, live animal, and petr oleum and related products. 
3. Are any licensing fees levied to cover admin istrative expenses related to processing of 
documents? If that is the case, what are the values? 
Answer:   The fees range from 50 to 100 baht. 
VII) INVESTMENTS AND POLICY MEASURES 
1. The Report by the Government, on page 20,  paragraph 111, states that "Thailand's 
investment regime is among the most liberal in the region. The Board of Investment (BOI) imposes no 
foreign equity restrictions in the manufacturing sect or. The law governing foreign direct investment in 
Thailand, Alien Business Law, has been revised .  The Foreign Business Act B.E. 2542 (1999) is 
currently in effect and allows more foreign partici pation in a wider range of activities such as 
brokerage services, wholesale and retail trade, constr uction, non-silk textile, garments, footwear, 
hotel, beverage production, and auction business." A re there any other sector allowed? How far is the 
participation allowed for the sectors listed?  WT/TPR/M/123/Add.1 
 Page 63 
 
 
 Answer:   As stated in the Government Report, Tha iland’s investment regime is among the most 
liberal in the region. We welcome foreign investors in all sectors with some exceptions as listed in the 
annex of the Foreign Business Act B.E. 2542 (1999) , due to reasons such as national safety, security, 
preservation of arts and culture, tradition, folk ha ndicraft, or natural resources and environment. 
Foreign equity for most sectors is limited to 49 percent while others such as banking and 
transportation have lower limits. For more informa tion, please visit the website of the Department of 
Business Development at www.dbd.go.th . 
2. According to paragraph 17, page 7, of the S ecretariat Report, "The 1966 Treaty of Amity and 
Economic Relations Between the United States and Thailand provides national treatment to each 
other's investors in the establishmen t, acquisition, and the right to do business, except in some major 
services sectors." What major services sectors are excepted? 
Answer:   The United States and Thailand reserve the right to provide national treatment for each 
other’s investors from establishing or acquiring interests, or doing businesses in the following six 
services sectors: 
- Communications - Transport - Fiduciary functions 
- Banking involving depository functions 
- The exploitation of land or other natural resources - Domestic trade in indigenous agricultural products 
OTHER ADDITIONAL QUESTIONS
 
Fish Products  
(Norway)  As a major exporter of fish and fish produc ts, Thailand would be nefit from stable and 
predictable market access conditions for these pro ducts. Still, Thailand maintains high tariffs for 
several fish and fish products, and several of the tariff lines are unbound. When can we expect 
Thailand to bind all of their tariff lines in the WTO? 
Answer:   All fish and fish products, except awabi and shark’s fin, are subject to WTO bound rates of 
5 per cent. 
Furthermore, as of January 1, 2002, Thailand’s app lied tariff rates (MFN) of fish and crustaceans, 
molluscs, and other aquatic invertebrates in Chapte r 03, except for awabi and shark’s fin, are reduced 
to 0-5 percent as follows 
(1) For items 0303.41, 0303.42, 0303.43, 0303.44, 0303.45, 0303.46, 0303.49, 0303.71, 
the tariffs rates are 0 percent. 
(2) Other items in chapter 3, except awabi and shark’s fin, the tariff rates of 5 percent are 
applied. WT/TPR/M/123/Add.1 
Page 64  
 
 In the NAMA negotiations, our delegation has supp orted the proposal for a 100 percent binding of 
tariff lines. 
Services:  Maritime Sector  
(Norway) 1. Conditions and possible restriction on par ticipation by foreign registered vessels in 
transports of cargoes owned or financed by government agencies 
Answer:   According to the Mercantile Marine Prom otion Act B.E. 2521, all imported government 
cargoes are required to be transported by Thai flag vessels in specific trade routes where Thai vessels 
are available for service. However, importers can re quest to be exempted from such provision if, at 
the time the imported cargoes are ready to be shipped at the port of loading, no Thai vessel is 
available. This means that they  can engage foreign vessels to carry the government cargoes with the 
permission of the Thai authority. In practice, a large number of importers have been granted 
exemption from such provision each year due to limit ed services of the Thai merchant fleet in certain 
trade routes. 
2. Measures with respect to taxation that  stimulates the use of Thai flag vessels. 
Answer:   All existing tax measures are intended to prom ote the expansion of the Thai merchant fleet. 
Such measures primarily focus on tax privileges given to Thai ship operators who wish to acquire new 
ships registered under Thai flag. One measure to pr omote the use of Thai fl ag vessels is the packing 
credit given to Thai exporters who engage Thai flag  vessels to transport their cargoes. Nevertheless, 
the effectiveness of this measure is limited by the capacity and capability of the Thai merchant fleet 
itself. 
3. Which bilateral agreements that  contain cargo sharing clauses? 
Answer:   Thailand has concluded bilate ral maritime agreements with  several countries. Only the 
agreements concluded with the People’s Republic  of China and Vietnam contain cargo-sharing 
clauses. Nevertheless, such clauses were abolished in 1995 and 1999 respectively in compliance with 
the GATS/WTO. 
Skimmed Milk Powder
 
(Australia)   Thailand has notified the WTO that it intends  to remove the local c ontent scheme for milk 
at the end of 2003 (G/C/W/459 of 18 March 2003 refers). This scheme had the effect of making dairy 
manufacturers purchase local raw milk  in preference to imported liquid milk or skimmed milk powder 
(SMP). How will Thailand allocate the skimmed  milk powder quota from 2004 onwards once the link 
between the use of local raw milk and the SMP quota allocation is abolished. 
Answer:   The local content scheme for milk will be abolished by the end of 2003.  From 2004 
onwards the import quota for milk products will be  determined solely on the basis of domestic 
demand with the WTO-bound TRQ volume as the minimum level.  WT/TPR/M/123/Add.1 
 Page 65 
 
 
 ATTACHMENT 1 
WRITTEN QUESTIONS FROM CHINA 
Trade Policies and Practices by Measure Question 2:  China would like to invite Thailand to clarify the operation of those practices. 
Answer: 
1. Procedure of Counterpurchase Execution 1.1 Towards the new fiscal year, government a nd state agencies forward notification of their 
intended projects (a value in excess of Baht 300 million) to the Department of Foreign Trade, 
Ministry of Commerce.  The Department of Foreign Trade is acting in the capac ity of the Secretary to 
the Countertrade Committee. 
1.2 The Department of Foreign Trade submits a list of intended projects to the Countertrade 
Committee.  The Committee will decide whether partic ular exceptions or changes will be made in the 
implementation of Countertrade measures as well as deciding the proportion of Counterpurchase to be 
required. 
1.3 The Department informs the relevant government or state agency of the Committee's decision.  
Letter of Undertaking for Counterpurchase (LOU), as  required in the tender documents is also 
forwarded to relevant government authority for future bidding process. 
1.4 The concerned government agency announ ces to companies for tender big.  The 
counterpurchase requirement, including the proportion of  counter-purchase to be required from part of 
the tender documents. 
1.5 The concerned government agency informs th e Department of Foreign Trade of the bidding 
outcome.  Upon the receipt of a Letter of Award fo r the main contract and the LOU, the successful 
bidder must contact the Department to finalize the Counterpurchase Agreement. 
1.6 The Department negotiates with the successf ul bidder before the Counterpurchase Agreement 
is signed.  In case where they lack of their own in-house facility, trading firm will normally take up 
this counterpurchase obligations. 
1.7 After the signing of Counterpurchase Agreemen t, the Department gives notification to the 
concerned government or state agency, so the main contract can be subsequently signed. 
1.8 The successful supplier or the designated trading firm must fulfill its counterpurchase 
commitments by exporting Thai products to foreign destinations (in line with the conditions set forth 
in the counterpurchase Agreement).  In order to s how evidence of fulfilment of the counterpurchase, it 
is required to submit Commercial Invoice, Bill of  Lading, and Credit Advice to the Department. 
1.9 The Department examines al these submitte d documents.  If the documents meet the 
counterpurchase conditions, then the counterpurcha se amount will be deducted to the value where 
goods are exported.  In return, the Department notif ies both the supplier and the trading firm of the 
outstanding balance. WT/TPR/M/123/Add.1 
Page 66  
 
 1.10 The Department reports progress on each Counterpurchase Agreement to the Countertrade 
committee. 
2. Entering of Counterpurchase Agreement 
2.1 The Department of Foreign Trade will pr oceed the Counterpurchase Agreement negotiations 
with the company selected and the assigned comp any in case where there is the assignment for 
execution of the Agreement. 
2.2 The detailed information of the counterpurchase shall consist of:  - Value of products for counterpurchase in which the evaluation will be based on the 
CIF value of imported products and service as a proportion stated by the Committee. 
 - A List of products for counterpurchase selected from the DFT's list of covered 
products for counterpurchase by the contractor of the Assignee. 
 - A Bank Guarantee issued by a commercial bank operating in Thailand to the value of 
5% of the counterpurchase value, in which the Contractor or the Assignee shall furnish to the DFT the mentioned Bank Guarantee at the time of signing of the Agreement to insure its implementation. 
 - A Penalty.  In case where the Contractor or the Assignee fails to complete an 
execution of the Agreement, according to the Bank Guarantee;  there will be a fine of 
5% of the value of counterpurchase obligation that are unfulfilled. 
 - Validity of the Counterpurchase Agreemen t.  The Agreement will be terminated 
2 months prior to the expiration of the Underlying Agreement. 
2.3 Signing of the Counterpurchase Agreement 
 - Time and date to sign the Counterpurch ase Agreement will be determined by the 
DFT. 
 - The signer of the Agreement shall be aut horized for signing.  In case where the signer 
does not have an authority for signing, submission of a Power of Attorney is required. 
 - In case where the Contractor assigns rights of the Agreement execution to the 
Assignee, the Assignee needs to sign an acceptation of the assignment at the same 
date which the Contractor Signs the Agreement. 
 - The Contractor and the Assignee in case of the assignment shall each side provide a 
witness at time of signing of the Agreem ent needs to sign an acceptation of the 
assignment at the same date which the Contractor signs the Agreement. 
 - The Contractor and the Assignee in case of the assignment shall each side provide a 
witness at time of signing of the Agreement. 
 - Mandatory documents required at the date of signing are:  WT/TPR/M/123/Add.1 
 Page 67 
 
 
   1) Company Registration (not more than 3 months, and has to be certified by the 
 Royal Thai Embassy or Thai Counsel lor in the country where the company 
 registered) 
  2) Guarantee of signing authority, or Power of Attorney   3) Bank Guarantee issued by a commercial bank operating in Thailand. 
3. Export of products under the Counterpurchase Agreement 
3.1 Following the signing of the Counterpurchase Agreement, the Contractor or the Assignee 
shall carry on the export of Thai products within  the conditions and timeframe stated in the 
Agreement. 
3.2 Subsequent to the export of products of each  consignment, certain e xport documents to show 
evidence of fulfillment of the counterpurchase ar e submitted to the DFT, which are Commercial 
Invoice, Bill of Lading, and Credit note or Credit Advice by an issuing bank confirming payment of such counterpurchase. 
3.3 The DFT will then examine such documents.  If the conditions set forth in the Agreement are 
fulfilled, the DFT will debit the account at the value of the date of export, and inform the deduction as 
well as the remaining amount to the Contractor or the Assignee. 
3.4 As soon as the Contractor or the Assignee has completed the obligation under the Agreement, 
the DFT shall inform the bank issuing the Bank Gu arantee and release the Bank Guarantee to the 
bank. WT/TPR/M/123/Add.1 
Page 68  
 
 ATTACHMENT 2 
TELECOMMUNICATIONS 
Concession conversion (USA)  Could the Thai representative provide an update on progress in the establishment of the NTC 
and conversion of existing telecommunications concessions? 
Answer:   Currently all concession contracts are in effect. The conversion process moves slowly 
because the agreement on the terms and conditions ca nnot be reached. In addition, market players are 
waiting for a clearer policy direction from the National Telecommunications Commission (NTC). 
NTC and the regulatory framework 
(USA)  Could the Thai representative tell us whether there is a plan to deal with important issues such 
as licensing, interconnection, competition, tariff- rebalancing and standards-making before the NTC is 
formed 
(Canada)  Could Thailand please clarify whether it has committed to the regulatory principles of the 
Reference Paper on telecommunications. If so, how does Thailand plan to implement these 
Principles? If not, does Thailand have any in tention of making these additional commitments? 
Canada understands that, despite the Master plan, th ere have been delays in the establishment of an 
independent regulator. Is the National Telecomm unications Commission (NTC) currently acting in its 
capacity as an independent regulator for the Tel ecommunications sector? If not, when does Thailand 
expect the NTC to assume this Role? Can WTO Members provide any assistance to expedite this 
process? 
Under the Telecommunications Business Act B.E. 2544 (2001), the NTC is empowered to establish a 
regulatory framework for promoting "free and fair " competition in the telecommunications sector. 
This framework is to include rules and regula tions on competitive practices, licensing, operation 
conditions, fees, tariff structures and consumer right s. Could Thailand outline its plans for addressing 
these issues? Has the NTC begun its work in this respect? 
We understand that a number of these issues have also  been addressed by study groups established by 
the Posts and Telegraph Department (PTD) of th e Ministry of Transport and Communications. One 
study group is drafting rules and procedures on Interc onnection for ministerial approval.  Other study 
groups are to address licensing, competition pol icy, universal services, pricing and consumer 
protection. Could Thailand update us on how th e study groups have been addressing these issues in a 
Telecommunications context? How will the work of th e study groups relate to the NTC’s Mandate to 
establish a regulatory framework? 
(EU)   When will the Royal Thai Government decide on the setting up of the National 
Telecommunications Commission (NTC) and what is the precise path to achieving full liberalization 
in 2006? 
Will Thailand’s NTC have the power, under the Te lecommunications Business Act 2001, to redress all 
anti-competitive practices or is this task left to  overall competition rules and regulator and what are 
the next steps foreseen for the est ablishment of the new regulator?  WT/TPR/M/123/Add.1 
 Page 69 
 
 
 What is the link between those interconnection ru les foreseen in the Telecommunication Business Act 
2001? And will there be a systematic regulation of  dominant suppliers for interconnection under these 
rules or under the Telecommunications Business Act 2001? 
Answer: 
On regulatory framework:  - The setting up of rules and regulations in cluding competition is under the purview of 
the NTC. A concrete regulatory framework will not be created until NTC comes into 
existence. 
 - However, the Post and Telegraph De partment, which will become the NTC’s 
Secretariat Office, has set up 6 study groups since March 2002 to come up with a set 
of recommendations. 
 - The study groups will look into the follo wing issues: pricing, interconnection, 
licensing, universal service and consumer protection, competition, and (spectrum) 
resources management. 
 - The study group on interconnection is the group most active in drawing up general 
guidelines which could be further recommended to the NTC.  
 - Thailand recognizes the legitimate objective of the regulatory principles described in 
the reference paper. The NTC will set up rules and regulations in line with the 
Telecommunication Business Act, and consis tent with principles in the reference 
paper to the greatest extent as possible.   
On NTC 
- The Selection Committee has prescribed the selection criteria and procedure and 
opened for application during October 200 3. The deadline for application is 
November 10, 2003. The Selection Comm ittee will process all the applications 
immediately with a view to submit the resu lt within the first quarter of the year 2004. 
Fourteen candidates will be nominated. Seve n of them will be selected members of 
the NTC. 
TOT and CAT privatization 
(USA)   Could the Thai representative tell whether any  whether any limits will be set on foreign 
participation in the privatization of the corporatized TOT and CAT? 
(Canada)   Could Thailand provide an update on its priva tization program, particularly as it relates to 
the Communications Authority of Thailand (C AT) and the Telephone Organization of Thailand 
Corporation Public Company Limited (TOT)? We understand that the plan for the corporatization 
and subsequent privatization for these two organizati ons has been delayed mainly due to delays in 
establishing an independent regulator. When does Tha iland estimate that the corporatization of CAT 
and the privatization of both CAT and TOT will be complete? How will this delay affect Thailand’s 
plan for full liberalization of basic telecommunication by 2006? 
Answer:   Ministry of Finance, as the major shareholde r of TOT and CAT after their corporatization, 
is exploring on the ways in which TOT and CAT s hould be privatized. This includes the issue of WT/TPR/M/123/Add.1 
Page 70  
 
 public and foreign equity participa tion, the timeframe of corporatization, and the roles of TOT and 
CAT after privatization. Although Thailand cannot give the exact timeline, TOT and CAT intend to 
offer shares to the public within the first half of the year 2004. 
Telecommunication liberalization 
(USA)  We encourage the Thai government to accelera te its progress towards  compliance with its 
WTO telecom commitments. Could the Thai represen tative describe what steps will be taken to 
achieve full liberalization in 2006? 
(Canada)  Canada notes that Thailand has not taken comm itments in any of the following sub-sectors 
of telecommunications services (2C of the Sectoral Classification List): 
 - Packet-switched data transmission services 
 - Circuit-switched data transmission services 
 - Private leased circuit services  - Electronic mail  - Voice mail  - Electronic data interchange (EDI) 
 - Enhanced/value-added facsimile services, incl. Store and forward store and retrieve 
 - Code and protocol conversion Are there any specific concerns that are making it difficult for Thailand to make Commitments in 
these areas? Does Thailand antici pate making further services Comm itments for telecommunications 
services in the current round of GATS Negotiations? 
Canada is pleased to see that Thailand has offered broad sector coverage for computer and related 
services in its September 15, 2003 services offer as it has made at least partial commitments in all of 
the computer and related services sub-sectors of the Sectoral Classification List. Canada notes, however, that Thailand has remained unbound for mode  1 of all of these sub-sectors. Canada prefers 
to see Members take full Commitments for the cr oss-border supply of all computer and related 
services. Are there any specific concerns that have prompted Thailand to leave mode 1 unbound? 
Would Thailand consider making commitments for mode 1 for computer and related services? 
(Hong Kong, China)   It is noted that foreign equity cap allowed under the Telecommunications 
Business Act has been dramatically changed from 49 % to 25% and then Back to 49 % within two 
years. We consider that this uncertainty is not Conducive to foreign investment, and look forward to the full liberalization of basic telecommunications in 2006. We note however that the planned 
Privatization of the state monopolies by 1999, whic h is part of the plan, has been delayed and the 
precise path to achieving the full liberalization is yet  to be specified. Would Thailand share with us 
the progress of the Implementation of the liberali zation plan? Besides, would Thailand Consider 
reflection the liberalization Plan in more details in th e initial offers, in a bid to ensure more certainty 
for the market?  WT/TPR/M/123/Add.1 
 Page 71 
 
 
 (Norway)   The secretariat’s report paragraph 59 menti ons the Master plan for Telecommunications 
Development from 1997 which stipulates gradual libera lization of the telecom market, targeting full 
competition in 2006. The Plan stipulates for instance the removal of state monopolies, the conversion 
of existing concessions to foreign Participants to  licenses and the establishment of an independent 
regulator. This is also reflected in Thail and’s GATS commitment on telecommunication services. 
According to the report, the Telephone Organiza tion of Thailand (TOT) and the Communications 
Authority of Thailand (CAT) have recently been cor poratized. Private operato rs have been allowed to 
provide services in joint ventures of under build-transfer-operate (BTO) Contracts with TOT or CAT 
what is the current timetable for the liberalizati on of the Telecommunication market in Thailand and 
when will the concession contracts for priv ate operators be converted into licenses? 
Thailand has scheduled foreign equity caps for te lecommunication services. An Equity cap prevents a 
fair competitive environment. When will the equity  cap be abolished making it possible for foreign 
companies to hold a larger share of the company’s capital? 
Answer: 
 - In practice, Thailand telecommunications development plan dated back in 1997 no 
longer serves as policy guidelines. This is due to  the fact that the market situation has 
departed from the assumptions used when Thailand formulated the plan. However, 
many elements in the 1997 development pl an are still valid such as the removal of 
state monopolies, the conversion of concession contracts, and the establishment of an independent regulator.  
 - The Post and Telegraph Department, the interim regulator, is currently working on 
the drafting of a new telecommunications development framework. 
 - Thailand is committed to liberalize th e telecommunication market within 2006. 
Precise steps toward the 2006 milestone w ill be more concrete once the NTC is 
established. 
Telecommunication Business Act 
(USA)   We understand that amendments to the Te lecommunications Business Act passed a first 
reading in Parliament in September. Could the Th ai representative tell us when these amendments are 
expected to be enacted? 
Answer:   The passage of the proposed amendment is expected before the end of the current 
parliamentary session in November 2003. 
INTERNET AND E-COMMERCE 
(CANADA)   Canada is pleased to see increased compe tition amongst Internet Service Providers in 
Thailand. Canada also commends Thailand on its sale of 51 % of the equity of the Company Internet Thailand. Canada notes, however, that Internet pene tration is low Due to regulatory constraints. 
Does Thailand plan to loosen those regulatory Constr aints? If so, what steps does Thailand intend to 
take, and what expected tim eline for that process? 
We understand that Thailand has recently passed legisla tion that aims to create a legal framework for 
"electronic transactions" and "electronic signatures"  and is meant to apply to all kinds of e-commerce WT/TPR/M/123/Add.1 
Page 72  
 
 (Electronic Transaction Act 2001). Could Thailand please elaborate on the areas addressed by this 
law? What has Thailand’s experience been  in relation to its implementation?  
Answer:   Thailand does plan to relax the equity limits in internet service provider (ISP) business. 
Rules and requirements relevant to this shall be instructed by the NTC. 
Whether CAT will divest its interests in inte rnet service providers is a business decision. 
POSTAL SERVICES (Canada)   Could the Thai representative please expl ain how Thailand will ensure the independence 
of the postal regulator? 
Answer:   The Postal Committee established at the sam e time as the Thailand Post Co., Ltd. is the 
regulator of postal services in Thailand. The Co mmittee is under the supervision the Ministry of 
Information and Communication Technology.  
Could the Thai representative tell us whether the postal regulator will ha ve authority to regulate 
express delivery services, including those provided by  the corporatized Thailand Post? If so, please 
explain the extent of that authority. 
Answer:   The Postal Committee is the regulator of post al services. The provisions of the Postal Act 
B.E. 2477 cover basic postal (letters and postcar ds) and personal information. Any enterprises 
providing express delivery services not related to pers onal information provide by the Act (such as 
parcel post) fall outside the purview of the Postal Committee. 
Could the Thai representative tell us whether th e corporatization process changes regulations 
governing express delivery services and Thailand Post’s  activities in this sector, and if so, how? 
Answer:   After the corporatization, Thailand Post Co., Ltd. is subject to the Postal Act B.E. 2477. 
Former rules and regulations still apply. The co mpany is still regarded as a state enterprise. 
__________ 