7.2. Informal Cross-border Trade
Local border wholesalers play an important role in cross-border supply chains as being either indirect exporters or importers of goods. Despite permitted local border retailing functions at border crossing points, there are still illegal cross-border trades, which are carried out by both local people and outsiders. According to a local customs official, the value of illegal cross-border trade between Thailand and bordering countries is estimated at 10% of the total formal cross-border trade value (Anusit Kanchanapol, pers.comm.). Its trend is likely to decline as a consequence of tariff reductions and continuing efforts to formalize cross-border trading. In 2011, the leading illegal cross-border trade commodities with respective countries were from Myanmar (narcotics, personal cars, counterfeit bank notes, cameras and batteries); from Lao PDR (game boxes, clothes, fruits, garlic and narcotics); from Cambodia (personal cars, dry chili, paddy, cassava, frozen prawns, second-hand clothes and cigars); and from Malaysia (personal cars, narcotics, motorcycle parts, compact discs and tractors) (Department of Customs of Thailand 2012b).