Couriers upset over customs fee hike
Couriers have joined forces against an abrupt increase in overtime charges imposed by the Customs Department, which have gone up by between 500 per cent and a massive 28,000 per cent.The Conference of Asia-Pacific Express Carriers (CAPEC) – whose members include DHL, FedEx, TNT and UPS – has called for an immediate suspension of the additional overtime charges, citing a violation of international trade regulations.
The group has also asked for immediate consultations with the government, saying the move could affect the country's long-term aspirations to become a regional cargo hub, Ian Impey, head of the conference, said in a telephone interview from Brussels.
The Customs Department imposed overtime charges on air-express companies by factors of 500-28,000 per cent, effective July 16. The department informed the air-express operators on July 16 that the decision had been made to increase overtime charges for Customs clearance activities that are conducted outside of standard operating hours. The revised regime is based on levying the overtime charges on an individual airway bill.
The industry has estimated that the high charges will impose an additional cost burden of between US$800,000 (Bt34 million) and $7 million per month on the import/export business of the four major couriers alone.
It is likely that the major operators will pass the additional expenses directly to their customers, who are in the international trading business. This will have the drastic impact of reducing the competitiveness of domestic companies in the global market and adversely affecting any plans for the industry to expand or maintain its regional hub or distribution services here, conference sources said.
The conference members earlier filed a complaint with Deputy Finance Minister Suchart Jaovisit, the Customs Department and members of the domestic air-express industry about the issue, but there was no conclusion.
Imprey said Thailand had global trading commitments with the World Trade Organisation and the World Customs Organisation, but the Customs Department's measures do not look good for trade organisation formalities connected with import and export.
"Also, we're worried about the different international practice of the Thai Customs Department to impose charges without any prior consultation with the industry in terms of trade facilitation. The hikes in overtime charges will not only considerably increase the cost to the industry, it will obviously impact Thailand's competitiveness," the expert said.
He stressed that the industry needed a quick decision as consultation is necessary to deal with the matters affecting the express industry. Obviously, the industry needs Customs to maintain the status quo on the matter.
CAPEC expects that the only other alternative for the air-express industry is to discontinue the practice of clearing goods outside normal Customs hours. This would have an obvious detrimental effect on all local companies and individuals that demand time-sensitive services.
That means the whole notion of an internationally based, just-in-time supply chain would no longer exist in the Kingdom.
Besides the removal of the increased overtime charges, CAPEC requires a refund of the difference between all charges collected from the industry since that date and the charges recoverable under the previous regime.
It also suggests setting up a joint working party among the Finance Ministry, Customs Department and the express industry to assess the overall desirability of a customs overtime regime in the current international climate, and any operating arrangements for such a regime.
