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United States Makes Demands for Thai Trade Deal.
Byline: Wichit Chantanusornsiri
Jul. 7--The United States has made full compliance with General Agreement on Tariffs and Trade (Gatt) valuation procedures a prerequisite before any progress can be made on a US-Thai free trade agreement.
Chavalit Sethameteekul, director-general of the Customs Department, said US authorities have long complained that Thai officials were not applying Gatt valuations on imports, but instead demanded time-consuming inspections to ensure shipments were not being underdeclared in value.
The issue of customs procedures is one of several points which has been raised by trade negotiators looking to forge a free-trade agreement between the two countries.
Total trade between the US and Thailand stands at around 577 billion baht a year.
The General Agreement on Tariffs and Trade, the precursor of the World Trade Organisation, calls on member nations to standardise valuation procedures for tax purposes.
Transaction values are generally to be used as the basis for calculating import tariffs. Service and raw material fees in certain cases must also be included in the final import prices.
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