Thailand to End Duty-Free Treatment for Low-Value Imports: Impact on Cross-Border E-Commerce and Logistics

Today, we examine Thailand’s decision to abolish duty-free treatment for low-value imports and how this policy shift will affect cross-border e-commerce and logistics operations.

From 2026 onward, companies can no longer rely on low-cost, duty-free shipping models, making logistics strategy redesign unavoidable.

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Thailand’s Decision to Tax Even One-Baht Imports

Thailand’s Customs Department announced that starting January 1, 2026, all imported goods will be subject to customs duties and VAT.

This applies even to items valued at just one baht, ending the previous exemption for shipments under 1,500 baht.

Protecting Domestic Industry and Restoring Fair Competition

The policy targets the massive inflow of low-priced goods from China via platforms such as Shopee, Lazada, and TikTok Shop.

Because these goods entered duty-free, local Thai manufacturers and retailers paying full taxes were placed at a competitive disadvantage.

The government’s move aims to restore market fairness and protect domestic industries.

Part of a Global Shift Away from Duty-Free E-Commerce

Thailand’s decision reflects a broader global trend.

The United States is reviewing its de minimis rules, the EU plans to abolish duty exemptions, and Japan is also reconsidering its own system.

This signals a global move toward tax neutrality and stricter border controls for e-commerce shipments.

Implications for Logistics and Supply Chains

From a logistics perspective, customs workloads will increase and clearance times may lengthen.

As a result, companies may shift toward local warehousing and bulk import models instead of direct-to-consumer shipping.

For logistics providers operating in Southeast Asia, 2026 will be a critical year for operational restructuring.