End of Duty-Free Era From 1 Jan 2026, all online imports — no matter how small — will be taxed. | Fairer Competition Foreign sellers lose the THB 1,500 loophole; local retailers finally compete on equal terms. |
Price Impact Expect 10–30 % import duties — raising landed costs and squeezing margins. | Local Advantage Domestic producers gain ground as cheap cross-border parcels lose their edge. |
Closer Scrutiny Customs-platform data sharing means tighter audits and higher compliance risk. | Tax & TP Ripple New duties alter cost bases — transfer-pricing models need review. |
Deal Diligence Buyers must check if a target’s edge relied on duty-free imports. | Act Now Re-map supply chains, update pricing, and get compliance-ready for 2026. |
The Thai Customs Department has announced that, effective 1 January 2026, all goods imported via online platforms, such as Shopee, Lazada and Temu, will be subject to customs duties regardless of value. This change removes the current THB 1,500 duty-free threshold for small parcels entering Thailand. Average import duties are expected to range between 10 % and 30 %, depending on product type.
The measure aims to level the playing field between foreign e-commerce sellers and domestic retailers, who previously faced higher tax and duty costs when competing with duty-exempt imports. It is also part of a broader effort to improve customs transparency and ensure fair competition across the retail sector.
Foreign suppliers and local distributors involved in cross-border e-commerce should expect modest increases in landed costs and review their pricing or supply-chain arrangements ahead of implementation.
Policy Objective: Restoring Trade Fairness
The government has positioned this reform as a mechanism to correct trade imbalances between foreign online sellers and domestic Thai operators.
Under the existing regime, foreign e-commerce platforms and overseas suppliers could deliver small-value items directly to Thai consumers without paying import duty, while local retailers and importers of the same goods incurred full customs duties and VAT. This created an uneven competitive playing field, with imported parcels often undercutting Thai-sourced goods by 10-30%.
With the threshold abolished, the new policy aims to:
In effect, the reform strengthens the hand of domestic distributors and local producers, providing them with improved competitive parity in the Thai-market environment.
Implications for Inbound Investors
For foreign parent companies with Thai subsidiaries engaged in e-commerce or fulfilment operations, the change has several material implications:
a) Cost and Margin Pressure
Importing goods via online/fulfilment models that historically fell under the threshold of THB 1,500 will now attract duty. This will raise the landed cost of goods sold and may compress margins of Thai subsidiaries unless pricing adjustments are made.
b) Competitive Rebalancing
Domestic distributors gain a more level footing. Multinational groups reliant on cross-border parcel imports must reassess the viability of these models under the new duty regime.
c) Compliance and Audit Exposure
TCD’s collaboration with platforms to verify consignment data increases the risk of duty assessments, fine exposure, and reputational impact. Importers should ensure accurate Harmonize System (HS) classification, value declaration and documentary control.
d) Transfer Pricing and Cost Base
The additional import duty affects the cost base of Thai subsidiaries, with implications for inter-company pricing models and margin analyses. Documentation should reflect the altered cost structure and potential margin impact.
e) Due-Diligence in M&A
When evaluating targets in the Thai e-commerce space, diligence teams should check whether the target’s historic pricing advantage depended on duty-free small-parcel imports, an advantage which disappears as of 2026.
Conclusion
The removal of the THB 1,500 de minimis threshold for duty-free online imports is a meaningful shift in Thailand’s customs policy, both in its fiscal and fairness dimensions. For inbound multinational groups with Thai operations, it signals the need for immediate review, particularly of e-commerce fulfilment strategies, import cost bases and inter-company pricing. With the playing field adjusting to favour domestic operators, now is the time to re-examine supply-chain design and ensure compliance readiness.
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For tailored insights on import duty impact, transfer pricing, supply-chain modelling, cost-base mapping, and tax-readiness planning, contact Chanattorn Thunyaluck, Partner, Tax & M&A Advisory, Wise Equity Legal Counsel at chanattorn.t@wiseequitylegal.com — your trusted advisor for navigating Thailand’s evolving customs landscape.
Chanattorn Thunyaluck
