Thailand strengthens control over origin review and strives to reduce high tariffs imposed by the United States

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In response to the equivalent tariffs imposed by the United States 41Cr4 steel on Thai goods, the Thai delegation has proposed a policy recommendation: to strengthen the monitoring of false declarations of origin for Thai products exported to the United States.

This policy proposal is not a new measure, but one of the measures implemented by Thailand since 2022 through the "Notice on Qualification Inspection of Non Preferential Tariff Certificate of Origin Goods". The attachment of this announcement clearly lists the list of products that require origin review (specifically referring to 49 categories of goods exported to the United States), and requires exporters to submit an origin verification application before applying for a Form C/O certificate of origin.

This origin inspection measure is part of the cooperation mechanism between Thailand and the United States Customs, aimed at preventing third countries from evading US anti-dumping (AD), Section 301, and Section 232 national security tariffs through Thai exports.

In April 2025, the United States is preparing to implement a 36% equivalent tariff as Thailand ranks 11th among its trade surplus countries (with a trade surplus of 35.4276 billion US dollars). In order to obtain exemptions, Thailand is preparing to submit a new version of the observation list for 49 exported goods to the United States, with a focus on three high-risk products: steel, aluminum, and automotive parts/equipment.

The main products involving the following customs codes include:

1. Steel products (HS code)

7213-7227: Carbon steel and alloy steel wire rods

7304: Seamless steel pipe (excluding cast iron)

7306: High quality carbon steel welded round 41Cr4 steel pipes for oil/gas transportation

7307: Steel pipe fittings

7317-7907: Partial steel nails

7318.14.10: Screws, nuts, bolts, rivets, washers, etc. (diameter less than 6mm)

7318.19: Other steel connectors

7320-7326-9404: Internal spring assembly (without casing)

8305: Steel Staples

7326-7323: Steel wire hanger

7324: Deep drawn stainless steel sink

2. Aluminum products (HS code)

Including codes 6603, 7609, 7610, 7615, 7616, 8302, 8503, 8305, 8306, 8415, 8418, 8419, 8422, 8424, 8473, 8479, 8481, 8486, 8487, 8508, 8513, 8515, 8516, 8529, 8538, 8541, 8543, 8708, 9031, 9401, 9403, 9405, 9506, 9507, 9603.

7606-7607: extruded aluminum profiles

8544: Some types of aluminum foil

Aluminum wires and cables

3. Automotive parts (HS code 8708 series)

8708.29: Vehicle body parts (doors, etc.)

8708.30: Braking system and power assisted braking system

8708.40: Transmission and its components

8708.50: Drive shaft with differential and non drive shaft

8708.70: Wheels and related 41Cr4 steel parts

8708.99: Certain types of steel wheels

4011.10-4011.20: Passenger car and light truck tires

4011.90: Other new inflatable tires

Further analysis of the overlap between Thailand's top 15 exports to the United States in 2024 and the watchlist reveals that there are four key product categories with a total export value of 7.16 billion US dollars, including:

1. Tires: The export value is 3.513 billion US dollars, accounting for 19.3% of the US import market. Thailand is the largest source of tire imports for the United States;

2. Mechanical components (such as printed circuit board 8473): 1.501 billion US dollars, accounting for 2.9%;

3. Automotive parts and equipment: 1.404 billion US dollars, accounting for 1.4%;

4. Refrigerators, freezers, and refrigeration equipment (Class 8418): 742 million US dollars, accounting for 2.6%.

In addition, Thai Deputy Prime Minister and Finance Minister Pichai Chunhavachira led a delegation to the United States, hoping that the US would accept the following five policy recommendations in exchange for tariff exemptions:

1. Promote mutually beneficial industrial cooperation;

2. Open up agricultural markets and reduce tariffs on agricultural products (including most favored nation rates);

3. Expand US exports of goods to Thailand (such as LNG, ethane, and petroleum);

4. Strengthen the examination of the origin of exported products to prevent third countries from "crossing";

Encourage Thai companies to invest in the United States, such as agricultural projects and Alaska natural gas projects.

  • Source: Abstract
  • Editor: Shirley

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