Ministry of Commerce Lifts Export Control on Coal to Reduce Legal Redundancy
September, 22 2023
The Cabinet has approved a draft announcement from the Ministry of Commerce to lift export controls on coal, aiming to reduce legal redundancy in coal export regulations. Coal exporters will no longer require permission from the Ministry of Commerce, as coal is already regulated under the Ministry of Industry according to the Mineral Act B.E. 2560 (2017).
Ronnarong Poolpipat, Director-General of the Department of Foreign Trade, stated that on August 23, 2023, the Cabinet approved in principle the draft announcement from the Ministry of Commerce to repeal Notification No. 86 (1998) on Export Goods as proposed by the Ministry of Commerce. This aims to eliminate overlapping legal frameworks in the regulation of domestically sourced coal exports.
Since 2021, the Ministry of Industry, through the Department of Primary Industries and Mines, issued a regulation specifying the types and conditions of minerals prohibited from export outside the Kingdom or its continental shelf, under the authority of the Mineral Act B.E. 2560 (2017). This regulation prohibits the export of coal originating from the Kingdom and the continental shelf and has already come into effect.
With the repeal of the Ministry of Commerce’s regulation, imported coal can now be freely exported without requiring a permit from the Ministry of Commerce. This decision aligns with the consensus reached in a joint meeting with relevant agencies, including the Department of Primary Industries and Mines, Department of Mineral Fuels, Department of Alternative Energy Development and Efficiency, Customs Department, and the Electricity Generating Authority of Thailand. The new policy will be effective from the day following its publication in the Royal Gazette.
Between 2020 and 2021, Thailand exported an average of 0.11 million tons of coal per year. In 2022, coal exports reached 0.18 million tons, valued at 1.262 billion THB. Thailand's key export destinations for coal were:
- Cambodia (68%)
- Bangladesh (14%)
- Others (18%)
Meanwhile, Thailand imported 21 million tons of coal, valued at 94.895 billion THB. The major import sources were:
- Indonesia (70%)
- Australia (24%)
- Others (6%)