From 1 Jan 2026 Thai Customs charges import duty on foreign goods valued from 1 baht, on top of 7% VAT on items under 1,500 baht (since July 2024). Clothing faces up to 30%, bags 20%, other goods roughly 10-20%. Krungthai COMPASS estimates the measure cuts low-value imports by about 3.3 billion baht a year, but says it may not be enough against Chinese fashion, which still sells 52-58% below Thai-made clothing after tax. For SMEs, expect some relief on price pressure but plan to compete on quality, design and channels rather than price alone.