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Home > News > Industry Activities > Thailand Eliminated Import Tariff of Japan’s Auto Part

Thailand Eliminated Import Tariff of Japan’s Auto Part

By Unknown , 2012-07-09 12:00:00

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Thailand has eliminated tariffs on more than 140 types of auto parts imported from Japan, retroactive to this past April.

The move comes under the Japan-Thailand Economic Partnership Agreement (JTEPA), supporting the country's aim to become the regional hub of car production.

Srirat Rastapana, director-general of the Trade Negotiations Department, said the Finance Ministry issued an announcement to cut tariffs on auto parts imported from Japan from 10-20% to zero this year.

The products include axles, transmissions, brakes, tyres, fuel tanks and engines.

The JTEPA took effect on Nov 1, 2007, and both sides have gradually cut tariffs, with 81% of Thai products to Japan and 72% of Japanese items to Thailand facing no import tariff.

Under the JTEPA, auto parts were classified as sensitive items.

The tariffs on these products could be cut only after the original members of Asean - Thailand, Indonesia, the Philippines, Singapore and Malaysia - plus Brunei cut tariffs to zero for all products (except highly sensitive ones).

Asean achieved the goal by the Jan 1, 2010 deadline.

Mrs Srirat said the tariff reductions would help automakers in Thailand cut costs by importing high-quality auto parts from Japan at lower prices, strengthening the local industry.

Over the past three years, Japan has been the source of auto parts imports totalling more than US$3 billion a year.

Last year's figure reached $5.87 billion or 63% of Thailand's total imports for this group of products.

Mrs Srirat credited Japanese investment in Thailand's automotive industry, which has created jobs and value.

From 2003-11, Japanese investment in the Thai automotive industry surpassed $36 billion or 24% of total Japanese investment in the sector in Asia.

 

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