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🇹🇭 Thailand /Economy & Trade

Shippers sound alarm on White House report

From Bangkok Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Thai shippers are concerned about their inclusion in a U.S. White House report on illegal transshipment.
  • The report could lead to increased U.S. inspections of Thai exports, raising costs and delays.
  • Thailand aims to improve supply chain traceability to regain U.S. confidence.

Thai exporters face potential scrutiny and increased costs following their inclusion in a U.S. White House report titled "The Great Transshipment Scam." The Thai National Shippers' Council (TNSC) expressed concern that this classification could erode U.S. confidence in Thai exports.

The report is a major warning sign that the export sector cannot overlook.

— Kanakorn KhantachawanaChairman of the Thai National Shippers' Council (TNSC), commenting on the U.S. White House report.

The report identifies countries, including Thailand, that exhibit significant illegal transshipment volumes. These nations are classified as Tier 2, indicating they are linked to transshipment activities that circumvent established logistics systems and supply chains connected to China. The TNSC chairman warned that U.S. inspections of Thai goods could intensify, particularly for items containing high proportions of Chinese raw materials or components.

Thai exporters will face longer customs clearance times and higher inspection and documentation costs.

— Kanakorn KhantachawanaChairman of the Thai National Shippers' Council (TNSC), explaining the potential impact of increased U.S. inspections.

This could result in longer customs clearance times and higher inspection and documentation costs for Thai exporters. The U.S. is developing an artificial intelligence system to trace supply chains beyond mere destination points. This system aims to identify the origin of goods and components more thoroughly, potentially leading to more extensive inspections in the future.

In the future, inspections may extend beyond the point of destination to include greater detail.

— Kanakorn KhantachawanaChairman of the Thai National Shippers' Council (TNSC), discussing potential future U.S. inspection methods.

Thailand's Commerce Ministry stated it is not concerned, as its trade negotiation team has already provided clear explanations and supporting data to the U.S. However, the TNSC recommended that the government establish an early warning system to identify transshipment risks before exporting to the U.S. They also urged the government to promote investment in genuine manufacturing, including domestic production of raw materials and components, and value-added processing, rather than just minimal processing for re-export.

Thailand needs to prepare for an area that must not just be declared, but proven for origin country.

— Kanakorn KhantachawanaChairman of the Thai National Shippers' Council (TNSC), emphasizing the need for origin verification.
DistantNews Editorial

Originally published by Bangkok Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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