Thai Shippers Warn US Transshipment Report Threatens Exports
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- Thai National Shippers' Council (TNSC) voiced concern over Thailand's inclusion in the White House report titled "The Great Transshipment Scam," which classified Thailand, Vietnam, Malaysia, Indonesia and over 40 countries as Tier 2 on May 2.
- TNSC chairman Dhanan Kukamjad said the report is a major warning sign, warning that legitimate Thai exports of components, raw materials, or goods containing a high proportion of Chinese inputs could face heightened US inspections.
- Kukamjad noted the US is developing an intelligence-led "detective border" system designed to analyze shipping routes and components to identify supply chain identity fraud.
- Future inspections may extend beyond documentation to include detail checks for excessive cargo capacity and undeclared transshipment, according to the TNSC chairman.
- Commerce Minister Suphajee Suthumpun said the ministry does not yet have clear data to support expanded US market access, because the Section 301 investigation exceeds the ministry's capacity.
- Kukamjad urged the Thai government to ease regulations with the US on origin-of-goods criteria, including processing levels, value-added content, raw materials, production processes, and "Made in Thailand" certified export shipments.
Why it matters: Thailand's Tier 2 placement puts its exporters in the crosshairs of an evolving US enforcement regime that will demand proof of country-of-origin rather than just tariff classification, while Bangkok's commerce ministry concedes it lacks the data infrastructure to respond during the active Section 301 investigation.
Ask SkimNews
