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Thai logic - Customs charges tea money twice.


MaiLuk

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Seems that regulators mandated that importers pay a set amount of tea money to customs officials so that there would no longer be a need for under the table tea money payments. End of customs corruption right? Wrong. Customs guys still require the same under the table tea money. They now get twice what they were getting before.

 

I suspect other thai agencies are envious and will also want to legitimize tea money.

 

 

 

CORRUPTION: Customs still taking tea money

Published on November 12, 2004

 

Practice continues despite service fee

 

Corruption at the Customs Department is still widespread despite the department converting under-the-table payments into a legal service fee, Chulalongkorn University researchers have found.

 

Private firms complained they still have to pay tea money to corrupt officials for customs clearance, Nualnoi Treerat, head of the research team, said yesterday.

 

In August, the department was allowed to charge importers an additional service fee of Bt270 for incoming goods, 95 per cent of which would go to its officials. The amount was based on the average tea money importers had to pay for each invoice.

 

However, the 200 exporters and importers surveyed still complained about chronic corruption imposing costs on their businesses.

 

Private companies are also worried that costs would increase further if related agencies were also allowed to legitimise under-the-table fees.

 

Other state agencies involved in imports and exports include the Port Authority of Thailand, the Commerce Ministry and the Food and Drug Administration.

 

Despite commitments made over the past five years, the Customs Department is yet to deliver a higher standard of services, Nualnoi said.

 

The department is under pressure from the private sector and the government, who say unnecessary costs on exporters and importers are eroding the country's competitiveness.

 

The National Economic and Social Development Advisory Council, an independent body, sponsored the new research with the aim of improving good governance in the public sector.

 

Nualnoi said there were some indicators of improved service, but corruption was still a concern. Overall, the level of corruption this year is lower than in 1999, she added.

 

Sixty per cent of private firms surveyed said they paid tea money of less than 1 per cent of the total cost of customs clearance. Eighteen per cent said they paid between 1 and 3 per cent, 4 per cent handed over between 3 and 5 per cent, and 2 per cent forked out 5 to 10 per cent of the total cost.

 

By comparison, in 1999, 18.3 per cent of surveyed companies said they paid less than 1 per cent of the total cost, while 19.5 per cent paid the top rate of between 5 and 10 per cent.

 

The department has introduced an electronic system and reduced complicated procedures in an effort to improve services and lower corruption, said Nualnoi's assistant Noppanun Wannathepsakul.

 

But researchers said private firms still worried that corruption had become ingrained in the Customs Department's culture.

 

Meanwhile, permanent secretary at the Finance Ministry Suparut Kawatkul yesterday set up a hotline for dealing with corruption. The 24-hour service can be accessed by calling 1689.

 

Wichit Chaitrong

 

The Nation

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i am sorry but what is the difference between under the table money and tea money. not that i would not have any experience with under the table money in thailand......

 

just a nicer word or is under the table money in opposite to tea money for hard liquor?

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Apparently when tea money is required to be paid by law, it becomes a 'service fee'. If the service fee is collected AND tea money is also collected on top of that, then the new tea money is now called "under the table' tea money to distinguish it from the 'service fee' tea money.

 

Are we all on the same sheet? :p

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Hi,

 

"Then again, I am not involved in business here."

 

No need, we pay 20 Baht to the garbage collectors each month. Failure to do so may result in your garbage no longer being picked up (according to the missus).

 

Now, (20 Baht / month x say 2,500 houses) / 4 collectors = 12,500 Baht / month. Not a bad amount of tea money, eh?

 

Sanuk!

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Mailuk,

 

lots of laughter. The more interesting survey would be how much the famous importers pay to the customs officials for being undercharged on import duties. Example : import duty automotive parts , cast iron , is 28 % ; a "willing " official declares it as coconuts and duty drops to maybe 3 % on a ridiculously low value.

 

I recommend to inspect the customs car park at Don Muang , car many too big .

 

BuBi

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MaiLuk said:<big snip>

 

Meanwhile, permanent secretary at the Finance Ministry Suparut Kawatkul yesterday set up a hotline for dealing with corruption. The 24-hour service can be accessed by calling 1689.

 

 

So, does this mean you can go to Customs to pickup your shit, wait for the prick to request the extra fees, then dial this number and ask him to speak to your friend on the phone?

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Now, (20 Baht / month x say 2,500 houses) / 4 collectors = 12,500 Baht / month. Not a bad amount of tea money, eh?

 

Just over US$300 and have to sift through trash and lord knows what else for a month? I think those guys are short-changing themselves. They should be charging much more.

 

Of course based on the way the streets of BKK look on a normal basis I guess some collectors have decided to charge more. Unfortunately it appears the residents simply don't pay and throw their garbage out in the street.

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Hi,

 

"Just over US$300 and have to sift through trash and lord knows what else for a month?"

 

12,000 Baht is about 50% more than a univ graduate makes, more than double the salary of a factory worker / security guard.

So, yes, I would say this is a lot of money.

 

Converting it to US$ is totally irrelevant as these guys do not live and work in the US. They pay 20 Baht for lunch, do you?

 

Sanuk!

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