Trade Digest Vol. 2 Issue 8 22 April 2015 Thailand Signs Protocol 7 of the ASEAN Goods in Transit Agreement On 24 February 2015, Mr. Sommai Phasee, Thailand’s Minister of Finance, signed Protocol 7 of the ASEAN Framework Agreement on the Facilitation of Goods in Transit (AFAFGIT) and its technical annex on rules and customs procedures. This ended the long-awaiting speculation on when the Protocol would be ready for signing after years of negotiations and revisions among ASEAN members. Mr Sommai stated that signing Protocol 7 showcased Thailand’s steadfast intent in honoring its commitments to becoming part of the ASEAN Community by the end of 2015. The CCA essentially allows only one customs inspection for adjoining countries in the Greater Mekong Sub-region (GMS) countries including Thailand, instead of the usual two inspections in the inbound and outbound countries. Currently, Thailand has the Mukdahan Customs Border practicing CCA inspection while other borders will follow shortly. With these developments, transporting goods in transit will be better facilitated which ultimately saves time and resources for all stakeholders. The AFAFGIT is comprised of 9 Protocols in total but Protocol 7 remains key in rendering the effectiveness of the Agreement not only because it allows the transit transportation to take place among ASEAN countries but also because it mandates the rules and customs procedures that business operators have to follow in order to engage in such transportation, enabling easier and more efficient transportation of goods to more than one ASEAN country. In parallel to signing Protocol 7, Thailand also issued many domestic regulations, one of which is the Customs Notification on customs transit in March 2015 as reported in previous Trade Digest articles. Another such regulation is the Customs Act (No 22) B.E. 2557 (2014) which stipulates the Common Control Area (CCA) practice for Thailand and its neighboring countries, in accordance with the domestic Cross Border Facilitation law and related international agreements between Thailand and other countries. Bolliger & Company Consulting Ltd. | Bolliger & Company (Thailand) Ltd. | Tel. +66 (0) 2 625 6300 | Fax. +66 (0) 2 625 6311 www.bolliger-consulting.com Page 1 Stay informed with latest development in trade negotiations and changes in trade laws/regulations. Get an insight of how the latest news will affect your market and regulatory environment from our “Trade Digest”. If you have any comments or questions regarding Trade Digest or any matters discussed herein, or if you are interested in finding out more about Bolliger & Company Consulting services, please contact any of the persons below: Malika Bhumivarn | Partner [email protected] Rachda Chiasakul | Partner | Director, Advisory Services [email protected] Tel. +66 (0) 2 625 6300 Fax. +66 (0) 2 625 6311 Bolliger & Company Consulting Bolliger & Company Consulting Limited is a Bangkok-based consulting firm with a proven track record in advising private and public sector organizations on a wide range of issues related to trade and investment. We are fully committed to delivering the highest standard of service and bringing our expertise to bear in helping our clients move forward in today’s dynamic business environment. Highly experienced in fields of expertise that cover customs, legal and tax, supply chain, and advisory services, we have played a key role in improving the performance of our clients in more than 15 jurisdictions including China, Japan, Indonesia, Singapore, and Thailand. “Clients’ success is our best interest” Bolliger & Company Consulting Ltd. | Bolliger & Company (Thailand) Ltd. | Tel. +66 (0) 2 625 6300 | Fax. +66 (0) 2 625 6311 www.bolliger-consulting.com
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