Thai Tariffs Dropped on More Than 140 Japan-Made Parts

Thailand is ending import tariffs on more than 140 automotive parts from Japan.

Trade Negotiations Department Director-General Srirat Ratspana says the Finance Ministry’s customs department ended the tariffs previously set at 10% to 20%.

She tells The Nation newspaper the items to benefit include axle shafts, transmissions, seatbelts, brakes, wheels, shock absorbers, clutches, exhaust pipes and fuel tanks.

“The zero-tariff rate will be retroactive to April 1, 2012,” Srirat says.

The tariff removal was made under the Japan-Thailand Economic Partnership Agreement to support the Thai government’s goal of making the country a regional auto-production hub.

Since the free-trade agreement took effect in 2007, Thailand has removed tariffs on 72.3% on imports from Japan, while Japan has done the same with 81.1% of its imports from Thailand.

However, Mitsubishi Thailand is calling for an end to import tariffs on lithium-ion batteries, to help grow the fledgling electric-vehicle sector.

Company President Nobuyuki Murahashi tells the Bangkok Post local production of the advanced power packs is not viable, as the EV is a new type of car in Thailand. He says EV makers should be allowed to import batteries duty-free at first to spur demand before local battery production begins.

Mitsubishi plans to spin off an electrified version of its Mirage small car, now built with a conventional gasoline engine under the Thai government’s eco-car scheme.

Mirage production for domestic and export markets is expected to reach 150,000 units by next year. Mitsubishi tells the newspaper this could rise if Thai assembly of a plug-in Mirage goes ahead.

The government wants to make EVs the third pillar of the country's automotive industry after pickup trucks and eco-cars.