Core Insights - The Thai Ministry of Commerce is launching a crackdown on false origin declarations for goods exported to the U.S. in response to a 19% tariff set to take effect on July 31, 2025 [1] - The U.S. is Thailand's second-largest export market, accounting for 18% of total exports, approximately $55 billion annually [1] - The U.S. has changed its origin determination standard from "substantial transformation" to "Regional Value Content" (RVC), requiring a higher proportion of local materials [1] Summary by Sections - **New Regulations and Tariffs** - The Thai government is responding to the U.S. imposing a 19% tariff on Thai goods starting July 31, 2025, with potential penalties of up to 40% for goods found to have falsified origins [1] - **RVC-Up Program** - The Ministry has introduced the "RVC-Up" program aimed at increasing local content in exports to the U.S., set to be implemented in Q4 2025, benefiting around 6,000 exporters [1] - The program includes three main components: - AI Verification System: Utilizing AI to verify approximately 8,000 RVC certificates monthly to ensure compliance with U.S. regulations [1] - Training and Consultation: Providing training and consulting services to about 6,000 exporters regarding the new regulations [1] - Low-Interest Funding Support: Collaborating with the finance department to offer low-interest loans to companies enhancing local material usage [1] - **Regulatory Oversight** - The Thai government has established the "Illegal Foreign Investment Management Committee" to investigate "nominee" companies registered under Thai names, preventing foreign companies from falsely declaring Thai origin [1]