Thailand is one of the world's largest importers of wood and wood products, and also a major exporter of my country's wooden furniture, sawn timber, wood planks, wood chips, and paper products, which has a great impact on my country's imported log supply.
lower import duties
In order to enhance Thailand's international competitiveness in the export of high-end wood raw materials, boards, and wood products, Thailand Customs has recently announced a new version of the tax reduction and tax rate adjustment policy for wood exports: from March 1, 2022, Thai logs, boards, and wood products will be Enjoy the export tariff-free treatment, and the export tariff of precious wood such as agarwood has also been greatly reduced. For example, the export tariff of agarwood will be reduced from 40% to 10%.
For timber merchants, raw materials are the largest production cost for the company. For a long time, the cost of foreign high-quality timber has been continuously compressing the profits of timber enterprises through layers and layers, and the operating pressure of timber enterprises is great. The adjustment of the timber tariff policy may reduce the import cost of Thai timber to a certain extent.
Timber exports increase
Changes in import duty rates affect the timber trade. The most obvious one is the stimulation of the import tariff policy on the amount of timber.
In this adjustment, Thailand has canceled most of the export approvals for economic forests on the basis of retaining the original export application requirements for special woods. This means that it will be easier to export timber, and Thailand's timber exports may increase.
But it's worth noting that not all wood is exempt from approval. The new regulations do not conflict with some timber export bans, and timber that is prohibited or restricted is still subject to export restrictions and requires authorization from relevant departments.
Rare timber still subject to export restrictions
Thailand's new version of the tax reduction and tax rate adjustment policy for timber exports has boosted the development of its national timber export industry, which is also good news for my country's timber industry. The reduction of import costs and thresholds has relieved the pressure on timber enterprises to a certain extent. In the short term, the tariff policy has just begun to be implemented, and the price of timber will not fluctuate too much.
