Thailand is preparing to establish a dedicated task force in October to manage a surge in certificates of origin, following pending trade rule changes with the United States amid Washington’s intensified scrutiny of transshipment practices.
U.S. authorities have recently focused on Southeast Asian nations, including Thailand and Vietnam, for allegedly facilitating the rerouting of Chinese goods to the U.S. market without significant value-added processing, in an effort to circumvent higher tariffs.
While the U.S. scaled back its proposed tariff on Thai imports from 36% to 19%, it warned that products suspected of misrepresenting their origin could still face duties of up to 40%.
Details on how the U.S. will define and enforce transshipment are yet to be determined, as negotiations continue over new rules for regional value content—the share of a product’s value that must originate from a specific country or region.
Arada Fuangtong, head of Thailand’s Department of Foreign Trade, said the new rules as part of the evolving tariff structure are likely to create a dramatic increase in the demand for certificates of origin.
She noted that this could mean issuing documents for millions of export shipments to the U.S. each year, compared with 70,000 annual certificates currently. To manage this, Thailand will introduce a 50-member team, develop systems, and implement dedicated workflows for U.S.-bound goods.
Last year, Thailand exported $55 billion in goods to the U.S., making up around 18% of its total exports. Current regulations require certificates of origin primarily for shipments suspected of labeling fraud, but under the new arrangements, nearly all exports to the U.S. would need official documentation verifying origin, cost, and local content.
Arada added that the necessary changes are being designed to avoid disrupting trade, noting that previously, certificates were also issued by the Thai Chamber of Commerce and the Federation of Thai Industries.
