Commerce Ministry Reiterates Ban on Importing 'Used Cars' After December 9th; Violators Will Face Seizure and Fines
On November 29, 2019, Mr. Kirati Ratchano, Director-General of the Department of Foreign Trade, announced that the Ministry of Commerce's regulation designating used cars as prohibited or restricted items for import into the Kingdom will take effect on December 10, 2019. This regulation includes significant changes to the conditions for importing various types of used cars, specifically stating that personal used passenger cars are strictly prohibited from import. Consequently, import licenses issued under the previous legal framework will expire on December 9, 2019. Those who have already obtained licenses must complete their imports within the license's validity period.
“If any imports occur after December 10, 2019, the vehicles will be seized and destroyed, and the importer will incur a fine of five times the value of the used car. There will no longer be any auctions for these vehicles as before. The department has already provided a transition period for adjustment; it is not acceptable to wait until the last moment and risk non-compliance. Typically, around 200 used cars are imported each year, but this number has recently surged to about 300, which is expected since imports will no longer be permitted in the future,” Mr. Kirati stated.
Mr. Kirati further explained that for the import of special used vehicles, such as tractor units, cranes, and hoists, as well as used vehicles donated by government agencies, state enterprises, and charitable organizations, such as ambulances and fire trucks, these will still be regulated by the Ministry of Commerce and can be imported with permission. Other types of used vehicles, such as those with diplomatic privileges, temporary vehicles, prototype vehicles for research and testing, vehicles for refurbishment and export, museum display vehicles, and military vehicles, will be overseen by relevant agencies. Importers must ensure they check which agency they need to obtain permission from, as the department has delegated authority to these agencies due to their greater expertise.
However, regarding the import of vehicles for refurbishment and subsequent export, starting from December 10, 2019, automotive industry operators wishing to import used cars for improvement or repair to make them operational within free trade zones or bonded areas for export outside the Kingdom must comply with the regulations set by the Customs Department and the Industrial Estate Authority of Thailand (IEAT) and will no longer need to contact the department.
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