Thailand Tightens Rules on Disposal of Illegal Cigarettes and Vapes
To strengthen enforcement and disposal procedures, Thailand’s Bureau of Internal Revenue (BIR) has issued new guidelines requiring illegal cigarette and vape brands to be destroyed within 20 days of seizure.
New Disposal Guidelines Issued by BIR
According to Business Mirror (September 2), the BIR released Tax Memorandum Order No. 33-2024 on August 30, signed by BIR Director General D. Lumagui Jr..
The directive aims to enhance enforcement measures covering cigarettes, vapes, perfumes, sweetened beverages, and other excise-taxed goods—both locally manufactured and imported to reduce congestion at storage facilities.
Alignment with Revenue Regulation 14-2024
Lumagui explained that the order was issued in accordance with Revenue Regulation 14-2024, which standardizes procedures for the “Methods of Disposal of Recovered/Seized Items.”
This regulation establishes clear rules for handling seized or confiscated items to ensure transparency and accountability in enforcement.
Disposal of Non-Essential and Luxury Items
The BIR stated that non-essential goods such as perfumes, jewelry, yachts, luxury vehicles, fuels, and minerals will be disposed of via public auction or, if necessary, negotiated/private sale.
Proceeds from these sales, after deducting taxes, storage fees, and liabilities, will be deposited into a special fund to support the Department of Revenue’s enforcement and disposal operations.
If these goods remain unsold after two public auctions, they may be sold through private negotiation with prior approval from the Department of Finance (DOF) Secretary.
Mandatory Destruction of Harmful Goods
Goods deemed harmful to public health, including cigarettes, vape products, wine, and sugary beverages, along with machinery used in their production, must be destroyed as they violate the Internal Revenue Code.
Additionally, all materials used in counterfeiting tax stamps and labels are subject to destruction to prevent reuse.
The regulation mandates that all seized tobacco and vape products be destroyed within 20 days of confiscation.
Oversight and Environmental Compliance
The Commissioner of State Revenue, upon recommendation by the Disposal Committee, will decide the fate of all other recovered or seized materials.
The Disposal Committee is tasked with ensuring that all disposal or destruction processes comply with environmental laws, rules, and regulations, maintaining both legal integrity and environmental safety.
