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Thailand plans to launch dual-use items licensing scheme

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Targets heavy and nuclear equipment in the first pilot scheme

In brief

The Control of Items in Relation to the Proliferation of Weapons of Mass Destruction Committee of Thailand agreed to enforce the licensing requirement for the export and re-export of dual-use items. The first pilot scheme will apply to heavy and nuclear equipment.

In more detail

On 23 May 2024, the Control of Items in Relation to the Proliferation of Weapons of Mass Destruction Committee agreed to enforce the licensing requirement for the export and re-export of so-called “dual-use items”. The first pilot scheme will be for heavy and nuclear equipment as it has the least impact on business operators in Thailand, and we understand that the products that will be subject to this regulation are those listed in category 0 of EU Dual-Use Regulation (EU) 2021/821.

This licensing requirement aims to increase Thailand’s reliability in compliance with the United Nations Security Council Resolution (UNSCR) 1540 on controlling the proliferation of weapons of mass destruction and enhance domestic operators’ competency to compete in the global market.

Next, the Department of Foreign Trade and the Customs Department will jointly work on determining the customs tariff code and the statistic codes for dual-use items so the Department of Foreign Trade can link the licensing data with the Customs Department’s National Single Window (NSW) System.

The government has not yet published or announced the specific timeline for implementing this first pilot scheme, nor the criteria, procedures, or conditions for requesting and issuing a license. However, we anticipate that the government will provide a transition period beforehand, due to the likely effect on businesses.

Our Tax Team will closely monitor for developments and keep you posted on any updates.

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Pornapa Luengwattanakit currently leads Baker McKenzie’s Corporate & Commercial, Tax, as well as the International Trade, Compliance & Customs practice groups in Thailand. She practices mainly in the areas of corporate restructuring, major projects, mergers and acquisitions and trade competition. Ms. Luengwattanakit joined Baker McKenzie in 1982 and became a partner in 1989.

Author

Keerati is a partner in Baker McKenzie's Bangkok office. He joined Baker McKenzie in 2013 and is currently active in the Tax Practice Group and the International Commercial & Trade Practice Group. Prior to joining the Firm, he worked as an in-house lawyer at a leading automotive company, at which his areas of practice were general corporate matters, labour law, intellectual property law and customs law.
With 10 years of practice in tax, customs and trade controversies, Keerati helps clients with a comprehensive range of services, including post-reviews, post-clearance audits, negotiation, settlement with relevant authorities, appeals, and litigation. He has assisted clients during all stages of business, including planning, business structuring, implementation, investment, and dispute resolution.

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Panya Sittisakonsin joined Baker McKenzie in 2002 and became a Partner in 2012. He is currently a partner in the Tax Practice Group. He is also active in the International Commercial & Trade Practice Group, focusing on customs and supply chain issues.

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Pattaranut Choochuy is an Associate in Baker McKenzie, Bangkok office.

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