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Department of Excise Introduces e-Seal for Strengthening Regulation Over Underground Fuel Market

To combat the issue of illicit fuel trade, the Excise Department has recently implemented the e-Seal system for supervising and tracking the overland transportation of oil exports. This new system is intended to bring better control over the issue.

Electronic Seal Implementation for Strictening Illegitimate Fuel Market Oversight by Excise...
Electronic Seal Implementation for Strictening Illegitimate Fuel Market Oversight by Excise Department

Department of Excise Introduces e-Seal for Strengthening Regulation Over Underground Fuel Market

Thailand Introduces e-Seal System to Enhance Oil Export Oversight

The Excise Department in Thailand has introduced a new e-Seal system aimed at enhancing the regulation and monitoring of oil exports. The system, which replaces traditional lead seals, is designed to meet EU Certification Annex III standards and offers a range of benefits in controlling illicit fuel trade.

Key Components of the e-Seal System

The e-Seal system utilizes electronic seals connected to GPS systems, replacing traditional lead seals on oil transport vehicles. This innovative technology allows for real-time tracking of the vehicle's journey from its origin to the export checkpoint.

The GPS connection enables continuous monitoring of the vehicle's route, tracking seal lock and unlock events, and the vehicle's location throughout the journey. In case of irregularities such as deviations from the designated route, prolonged stops, or accidents, the system sends immediate alerts to authorities, ensuring prompt action can be taken to prevent illicit activities.

The e-Seal system also directly transmits route and seal status information to destination authorities, streamlining inspection procedures and reducing delays at checkpoints. This digital approach enhances the accuracy of clearance processes and contributes to increased efficiency.

Benefits in Controlling Illicit Fuel Trade

The e-Seal system offers several benefits in controlling illicit fuel trade. By ensuring that tax-exempt fuel intended for export is tracked and monitored closely, the system helps prevent its re-entry into the domestic market, thereby reducing smuggling activities.

The system increases transparency and trust in Thailand's taxation system by providing accurate and reliable data on fuel movements. This transition towards a digital approach aligns with broader efforts to modernize administrative processes.

Moreover, the digital nature of the e-Seal system simplifies the inspection process, reducing the reliance on manual checks and thus speeding up the clearance of goods at checkpoints. This not only enhances efficiency but also contributes to a more secure and reliable supply chain.

Launch and Implementation

The launch of the e-Seal system took place at Thai Pipeline Network in Ban Phai district, Khon Kaen, presided over by Paopoom Rojanasakul, Deputy Minister of Finance. The system has undergone testing with over 9,000 oil transport trips in collaboration with several oil companies and storage facilities.

The Excise Department will fully implement the e-Seal system starting September 1, 2025, marking a significant step in Thailand's efforts to strengthen oversight of oil exports, prevent illicit fuel trade, and align its tax administration with international standards. The e-Seal system lays the groundwork for advancing Thailand's tax system into the digital age.

In conclusion, the e-Seal system is a significant stride forward in Thailand's fight against illicit fuel trade, offering increased transparency, efficiency, and security in the oil export process. The system's introduction represents a commitment to modernizing administrative processes and aligning with international standards, setting a promising precedent for the future of Thailand's tax system.

[1] Excise Department, Thailand. (n.d.). e-Seal System. Retrieved from https://www.excise.go.th/en/e-seal-system [2] The Nation. (2022, February 10). Thailand unveils e-Seal system for oil exports. Retrieved from https://www.nationthailand.com/news/40011056

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