Transparency is Goal of New Thai Trade Rules

The Thai Department of Export Promotion has collaborated with the kingdom’s excise department, revenue department, and the private sector to launch the “Thai Gems and Jewelry Trading Route.” The campaign primarily aims to create better understanding among local and foreign operators of regulations governing the conduct of gems trade.

The goal is to “ensure that the gem and jewelry trade is conducted transparently in order to maintain a sustainable growth,” the export promotion department said in a statement.

In order to take advantage of incentives such as VAT waiver, local operators are advised to register their businesses in accordance with actual sizes and procedures established by the country’s revenue department—in particular they should do the following: 

• Apply for Board of Investment’s incentives
• Conduct their trade in Free Trade Zone
• Adhere to the revenue department’s Por Por 01.5 registration rules
• Be a member of at least one gems and jewelry trade association

Normally, the rules do not apply to foreign individuals or companies that buy foreign gemstones in Thailand for exports. However, if they intend to sell the gemstones in the Kingdom of Thailand, they must first register under the Alien Business Act.

“The success of Thai Gems and Jewelry Trading Route depends largely on cooperation from the private sector in adhering to regulations, a step that lays a foundation on which the future of the industry is built,” the export department said.