Thai Shippers Warn on White House Transshipment Report
Get the Geopolitics newsletter
Daily geopolitics — wars, elections, sanctions, the diplomatic moves that move markets. Free.
- Thailand and Vietnam were classified as Tier 2 on the White House report titled 'The Great Transshipment Scam,' which flags more than 40 countries associated with elevated transshipment risk.
- TNSC chairman Dhankharakasemsri called the report a major warning sign the export sector cannot overlook, and warned that if the US tightens inspections — particularly on Thai goods with high Chinese raw-material or component content — legitimate exporters could face higher communication/inspection costs and longer customs processing times.
- The US is developing an intelligence-enabled 'detective border' system to analyze shipping routes, product origins, components, and supply chains to identify transshipment.
- Commerce Minister Suphajee Suthonthum said the ministry is not concerned, noting Thailand's trade negotiation team had already provided supporting data and clear explanations to the US in May as part of Section 301 investigations into excess capacity.
- Suthonthum added Thai exporters must prepare for a regime where country of origin must be approved, not just declared.
- Dhankharakasemsri recommended a strategy covering raw materials, production processes, value-added content, and export shipments to verify genuine 'Made in Thailand' products, and urged Bangkok to clarify with Washington the criteria for country of origin and substantial transformation.
- TNSC proposed an early warning system to flag supply-chain and origin risks before goods ship to the US, and called on the government to seize the moment to accelerate local content and value-added production rather than rely on minimal processing, repackaging, or relabeling before re-export.
Why it matters: Thailand's Tier 2 placement puts its export sector — particularly goods with embedded Chinese inputs — in the crosshairs of a new US intelligence-driven 'detective border' enforcement regime, with TNSC warning that legitimate shippers could absorb higher inspection costs and longer customs delays. The Thai government's comparatively calm stance hinges on engagement already underway through the Section 301 process, leaving real exposure to whether Bangkok can credibly prove local content and value-added processing on individual shipments.
Ask SkimNews
