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Tag: purchases

  • Thailand Abolishes Tax Exemptions for Online Purchases from Abroad: A Boost for Local Businesses

    Thailand Abolishes Tax Exemptions for Online Purchases from Abroad: A Boost for Local Businesses

    Thailand is set to impose taxes on all foreign goods sold through online platforms starting from January of next year. This move marks an end to the existing exemptions granted to low-value imports that are priced under 1500 baht (US$46.30).

    Creating a Fair Business Environment

    Panthong Loikulnan, the director-general of the customs department, has said that the motivation behind this change is to establish a more level playing field for local businesses and to increase government revenue. He stated, “The absence of duties grants foreign goods an advantage over Thai businesses. This is particularly unjust to our SMEs.”

    In the new system, all imported goods, regardless of their value, will be subject to customs duties and value-added tax (VAT) as mandated by law. This change is set to replace the existing tariff exemption which is due to expire at the end of this year.

    Currently, imported goods priced below 1500 baht account for over 30 billion baht ($927 million) in annual imports.

    Loikulnan has indicated that enforcing an average 10 per cent duty could generate at least an additional 3 billion baht ($92.7 million) in government revenue each year.

    Ensuring Compliance

    The system will primarily depend on data verification from online platforms. Random inspections will also be carried out to ensure compliance.

    Thailand’s customs department has been engaging in discussions with major e-commerce operators, including Shopee and Lazada, to directly link their sales and import data.

    Loikulnan stated that this reform will assist in leveling the playing field for domestic retailers who are already paying taxes, particularly the small and medium-sized enterprises that are affected by the surge of low-cost imported products.

    He expressed concerns about the delay in implementing this process, stating that, “If we procrastinate, we will find ourselves at a disadvantage because all other countries are beginning to face the same issue: domestic sellers pay taxes, but foreign goods are imported tax-free.”

    Future Suggestions

    For the longer term, Loikulnan suggested introducing a “lump-sum tax”, which would be a flat rate of 20 to 30 per cent per imported package. He believes this would help simplify the system and increase its efficiency. However, he noted that such a change would necessitate legislative amendments and would require time to implement.

    Questions & Answers

    What is the motivation behind the imposition of taxes on foreign goods sold online?
    The introduction of the tax is aimed at creating a level playing field for local businesses and increasing government revenue.

    How will the system ensure compliance?
    The system will primarily depend on data verification from online platforms, with random inspections being carried out to ensure compliance.

    What is the ‘lump-sum tax’ that is being suggested for the longer term?
    The ‘lump-sum tax’ refers to a flat rate of 20 to 30 per cent per imported package. This is aimed at simplifying the system and increasing its efficiency.

  • Over Half Of South Korean Consumers Foret Refunds For Counterfeit Online Purchases, Cites Complex Procedures

    Over Half Of South Korean Consumers Foret Refunds For Counterfeit Online Purchases, Cites Complex Procedures

    Over half of South Korean consumers who inadvertently buy counterfeit products online do not pursue refunds, according to a recent survey by the Korea Consumer Agency. The respondents pointed to complex refund procedures and nominal sums involved as the main reasons for not seeking recompense.

    Consumer Responses and Counterfeit Products

    The survey, which included 1,000 consumers using eight leading online platforms, revealed that 58.6% of those who unintentionally bought counterfeit goods did not request a refund. Reasons given were that the refund process was too intricate or time-consuming (60.4%), or that the purchased items were of low value or indistinguishable from genuine products.

    The most frequently bought counterfeit items were bags, with 38.8% of consumers knowingly purchasing them. Shoes, however, were the most common accidental purchase, with 43.8% of consumers having inadvertently bought counterfeit footwear.

    Interestingly, many of the consumers who intentionally bought counterfeit products showed a lack of awareness about intellectual property rights. Almost half of them stated that they were unaware of, or unconcerned about, any possible issues.

    Responsibility and Complaints

    When asked who should bear the responsibility for counterfeit goods, 45.4% of the respondents blamed the sellers. Online platforms came second at 37.3%, while 17.3% of consumers held themselves accountable.

    The Korea Consumer Agency also examined 1,572 consumer complaints lodged between 2022 and February 2025. Handbags were the most frequently reported counterfeit items (21%), followed by shoes, cosmetics, audio devices, and clothing. The majority of complaints involved luxury brands, along with specific products such as Dyson hair dryers and Apple earphones.

    Price Comparisons and Seller Practices

    An analysis of price comparisons revealed further risks. On platforms like AliExpress and Temu, 72.5% of examined products were listed for less than 20% of their official market prices. Instagram and Naver Band also displayed similar steep discounts for over half of their items, with descriptors such as “mirror-grade leather” or “authentic-level” being used. Many sellers used private or external channels, which complicates monitoring efforts.

    Several platforms, including Naver Band, AliExpress, Coupang, and Temu, were criticised by the agency for their lack of clear instructions on how to report counterfeit items. Instead, they necessitated individual inquiries for each case.

    Call to Action

    The agency recommended that authorities and businesses augment their efforts to curb the sale of counterfeit goods. This includes limiting the use of misleading language on social media and enhancing transparency in reporting procedures.

    Questions & Answers

    What is the most common counterfeit item purchased intentionally in South Korea?
    Bags were the most common counterfeit items purchased on purpose, according to the survey.

    Who do consumers believe is most responsible for the sale of counterfeit goods?
    45.4% of respondents believe that sellers are the most responsible for counterfeit items.

    What measures has the Korea Consumer Agency suggested to combat counterfeit sales?
    The agency has suggested strengthening actions against counterfeit sales, restricting the use of deceptive terms on social media, and enhancing the transparency of reporting procedures.

  • PM Calls for Increased US Aircraft and LNG Purchases to Boost Trade

    PM Calls for Increased US Aircraft and LNG Purchases to Boost Trade

    Vietnam Urges Increased U.S. Imports to Strengthen Trade Relations

    In a recent governmental meeting, Prime Minister Pham Minh Chinh emphasized the importance of boosting imports of U.S. products, including liquefied natural gas, aircraft, and pharmaceuticals, to enhance Vietnam’s trade balance. This move comes amid ongoing negotiations with the U.S. aimed at fostering a more equitable trading partnership.

    Strategic Imports for Trade Balance

    During the meeting held on April 29, Chinh noted that while trade negotiations with the United States are progressing positively, securing contracts for essential imports is crucial for continued success. He highlighted the need for Vietnam to actively procure U.S. goods to maintain momentum in bilateral trade discussions.

    Chinh was addressing the backdrop of the recent suspension of high reciprocal tariffs by the Trump administration, which currently stands at a temporary rate of 10%. This pause offers an opportunity for Vietnam to align its import strategies with U.S. market demands.

    Upcoming Bilateral Trade Negotiations

    A Vietnamese delegation is scheduled to visit the United States on Thursday to engage in further negotiations on trade. These discussions will focus on achieving balanced and reduced import duties for both nations. Chinh aims to ensure that any trade agreements respect Vietnam’s sovereignty and national security while honoring international commitments.

    In addition to import duties, Vietnam plans to advocate for its classification as a market economy by the U.S. and seek the removal of restrictions on high technology exports.

    Impact on the Retail Sector and Consumers

    The push for increased imports from the U.S. is expected to not only bolster Vietnam’s trade balance but also to satisfy rising consumer demand for American products. As Vietnam seeks to diversify its import sources and strengthen bilateral relations, the effects on the retail sector could be significant, paving the way for enhanced availability of U.S. goods in the Vietnamese market. This strategic approach underscores Vietnam’s commitment to fostering robust international trade relations while catering to evolving consumer trends.

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  • Prepaid purchases gaining traction in India

    Prepaid purchases gaining traction in India

    For the first time, cash is no longer king in India’s online shopping scene.

    In a post-Diwali media release, India’s online marketplace Snapdeal reported that customers across India were willing to pay at the time of making the purchase instead of opting for cash on delivery.

    “This was in part driven by Snapdeal’s partnerships with eight leading banks this Diwali including with American Express, Axis Bank, Citi Bank, HDFC Bank, Kotak Bank, Standard Chartered Bank, State Bank of India and Yes Bank,” the report noted.

    These banks offered 10-25% additional instant discounts on each day of the sale in October. Data also showed that customers who bought electronics and furniture were the most likely to go for prepaid options.

    Among the cities, Trivandrum had the highest share of prepaid orders, constituting a whopping 85% of the total orders from the city. But the preference for prepaid transactions was the strongest in South India, followed by North, West, and East in that order.

    Snapdeal’s Unbox Diwali Sale was held from October 2-6. On the first 16 hours of the sale alone, Snapdeal reported more than 800,000 buyers from over 2,800 cities and towns across India, with sales volumes jumping six times the daily average. The orders went to nearly 50,000 sellers all over the country.

    During the sale, the e-commerce giant said it recorded the fastest shipping track record by delivering an order within an hour. An order for iPhone 5s placed at 7.20 a.m. was delivered to the buyer in Gurgaon at 8.10 a.m.

    To power faster deliveries, Snapdeal said nearly 72% orders were shipped out of its fulfillment centers (SD+). Nearly 32,000 people deployed every day of the month to deliver the packages across India.

    On the seller side, out of the more than 300,000 sellers on the platform, more than 32,000 sellers saw sales grow 7X from last Diwali season. The cities where most of these sellers are based were: Delhi NCR, Mumbai Metropolitan Region, Bengaluru, Jaipur and Surat.

    A little more than 60% orders came from Tier 2 cities and beyond. Moreover, over 82% of overall orders were placed through mobile platforms. The highest numbers of units ordered were for the fashion category, followed by home, electronics and mobiles in that order. In the fashion category, women’s’ ethnic wear was the most popular purchase.

    Diwali or Deepavali is a Hindu festival of lights celebrated every year in autumn. People generally dress up and exchange gifts on Diwali night and shop during the festive period.