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Wed, June 21, 2006 : Last updated 16:49 pm (Thai local time)



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Home > Business > Trade-related bribery may affect exports





Trade-related bribery may affect exports

Export and import companies paid Bt404 million in bribes last year for faster service at trade checkpoints around the country, reported a university survey.

Although the amount plunged from an estimated Bt10 billion paid in 2004, the surveyor urged the government to tackle the "tea money" problem if Thailand's export competitiveness was to be improved.

Last year's fall in bribes paid was attributed by the University of the Thai Chamber of Commerce's Centre for International Trade Studies to the government's stringent measures to crack down on internal corruption and provide more transparency.

However, it said its trade-facilitation index survey showed that much still needed to be done to reduce bribery in government agencies, in order to ensure trade facilitation and strengthen the country's export competitiveness. Trade laws, facilitation measures and official procedures all need to be improved.

Centre director Aat Pisanwanich said Thailand needed urgently to amend trade-facilitation laws within the next year, or else the country would be unable to compete in the tough global trading system.

The survey collected data from 500 export and import enterprises. They admitted to paying an average of Bt100,000 to Bt200,000 in bribes to government agencies to expedite their business. But Aat said some payments may have exceeded millions of baht.

He said exporters and importers complained that old-fashioned trade-facilitation laws were the main reason for the problem.

Thirty per cent of the exporters and importers surveyed admitted having been involved in bribery during customs procedures.

Aat suggested the government set up a central committee to formulate comprehensible tariff rates. When government officials are the only ones with the authority to interpret tariff regulations, this lends itself to corruption.

"If the government does not immediately solve the defects in the trade-facilitation system, Thailand will lose its competitive trade position to others," he said. In the judgement of the exporters and importers, Vietnam already has a better customs environment than Thailand has.

The centre said bribe-taking was not limited to the Customs Department. The Industry Ministry, the Foreign Trade Department, the Food and Drug Administration and the Thai Industrial Standards Institute are also involved.

The trade-facilitation index for Thailand's ports rose in the second quarter to 71.2 points, from 69.1 in the first quarter. Nevertheless, 56 per cent of respondents said low efficiency on the part of government officials led to bribery.

Klong Toei - the country's main port - has the highest record for bribery collection, followed by Don Muang International Airport and Laem Chabang Port in Chon Buri province.

In the second quarter, indexes for the customs environment rose to 71.8 points from 68.3; trade laws and regulations to 74.4 points, from 73.2; and the e-commerce process to 87.9 points, from 77.8.

Aat said that although all indexes rose in the second quarter, there were still many weaknesses in trade facilitation that needed to be eliminated, and customs procedures had to be reduced.

He said the outcome of the study would benefit government agencies, private companies and the general public.

Petchanet Pratruangkrai

The Nation








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