Customs Bureau Uncovers Billion-Baht False Origin Exports to US
Customs officials identified about one billion baht in goods falsely labeled as Thai-made exports to the US, predominantly consumer products like clothing and luggage, prompting stricter verification procedures to address American concerns
Thai Customs Director Panthong Loaykulnant reported that Thailand's exports to the United States over 11 months of fiscal year 2025 totaled approximately 2.7 trillion baht. Customs inspections identified goods falsely claiming Thai origin for export to America worth roughly one billion baht, predominantly consumer products such as clothing, luggage, and household items that do not rank among Thailand's top 10 export categories to the US. Loaykulnant noted that informal discussions with US officials have centered on concerns about Thailand's low Manufacturing Production Index (MPI), which the US views as inconsistent with rising export volumes and suggestive of transshipment fraud. The customs bureau is upgrading MPI data collection in coordination with economic agencies to reflect actual production more accurately.
Loaykulnant stated that many large exporters are currently not included in the MPI calculation, artificially lowering the index. In fiscal year 2026, customs will partner with the Department of Foreign Trade to strengthen the Certificate of Origin (C/O) verification process using the ROVERs PLUS system, which will scrutinize cost structure and production procedures online to verify genuine Thai transformation or manufacture, not mere repackaging. These improvements are intended to build US confidence and facilitate negotiations on the reciprocal trade agreement (ART) that the Thai government is pressing forward.
The customs bureau is enforcing stricter legal measures against origin fraud perpetrators in both imports and exports. Enhanced penalties now include a maximum fine of 500,000 baht for operators who intentionally declare false product origin to evade trade measures or claim tariff privileges under the Customs Act BE 2560, Section 202. Violators will also lose tariff benefits on the goods in question and must correct their documentation.
