Thailand to crack down on grey businesses

Thailand’s government is ramping up its campaign against so-called “grey businesses” to prevent the country from being used as a transit hub for illegal goods and to protect its industrial reputation.

Under enforcement efforts such as the “Shut the Door on Evil” campaign and the “Sud Soi” task force, authorities have shut down more than 38 illegal factories, screened over 46,000 companies suspected of using nominee shareholders and seized substandard goods worth more than 1 billion baht, with prosecutions underway. Officials have also blocked hazardous e-waste imports, ordering immediate returns to their country of origin.

Industry Minister Akanat Promphan stated that the ministry’s focus extends beyond enforcement, including efforts to improve industrial standards and uphold the “polluter pays” principle. Factories are being monitored more closely to ensure compliance with regulations, and business owners are encouraged to adopt environmentally friendly production methods to lessen community and environmental impacts.

For foreign businesses operating in Thailand, the crackdown also targets transshipment schemes used to bypass tariffs in third countries. This practice could expose legitimate exporters to punitive duties of up to 36%. Authorities inspect suspicious cargo containers for false declarations, seize non-compliant goods and work with international agencies to share intelligence.

“These actions are designed to protect both the economy and Thailand’s reputation as a responsible trading partner,” Akanat said, noting that non-compliance risks disrupting market access for law-abiding companies.