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Bangkok Post
Bangkok Post
Business
WICHIT CHANTANUSORNSIRI

Alibaba still interested in EEC centre

The Customs Department is in talks with Chinese e-commerce giant Alibaba on setting up a regional distribution centre for the company in the Eastern Economic Corridor (EEC).

The department and Alibaba will discuss the issue in detail before the end of this month, focusing on the company's product control measures in duty-free zones, said director-general Kulit Sombatsiri.

Alibaba hopes to set up a regional distribution centre in Thailand by 2019.

The EEC is an economic zone spanning the provinces of Chon Buri, Rayong and Chachoengsao.

Mr Kulit denied earlier reports suggesting that Alibaba would relocate the planned distribution centre elsewhere because of Thai customs law.

He said the reports are untrue because the latest customs law, taking effect on Nov 13, includes principles for easing import and export business.

For instance, an electronic system will be used for product inspection to accelerate customs procedures. The Customs Department is also in the process of drafting 10 organic laws to accommodate practical details of the new customs law, Mr Kulit said.

For Alibaba's planned distribution centre, if goods are meant for export from Thailand to a third country, then a tax liability will not be imposed and no import licence is required, Mr Kulit said.

This marks a shift from current customs law, which requires an import licence for exporting to a third country.

But for imported goods meant for domestic sale, an import licence is required and a tax liability will be imposed, Mr Kulit said.

For goods transported by sea or air, a pre-approved system will be in place for cargo checks, he said, adding that if an import company is not blacklisted by the Customs Department, the company can take out its goods immediately upon arrival.

The new customs law also manages cross-border goods and transshipment cargo by enabling a faster trans-shipment process and limiting those goods to 30 days' storage in Thailand in order to prevent goods being left over in the country.

An electronic lock system and key cards will be used for cross-border goods and transshipment cargo to curb smuggling, Mr Kulit said.

He said the new customs law also slashes rewards offered for informing on smuggled and illegal goods to 20% of the value of impounded goods and a maximum of 5 million baht.

The current customs law offers rewards of 55% of the value of impounded goods, and there is no cap on the reward.

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