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We often assume that FDA relapses when they are exposed to drug-related stimuli. For what it could be, the FDA may also experience drug cravings even when there is no stimulus. Based on previous reports, we hypothesized that the brain areas implicated in drug craving are significantly activated at rest in FDA [16,17,18,19,20]. We used the resting-state functional MRI (rs-fMRI) technique as it allowed us to measure the brain activity of the FDA in a safe and non-invasive way. The novelty of this work is that focuses on individuals who have been abstinent from drug use, whereas most studies have mainly focused on active drug users. Additionally, while studies have been performed by exposing the participants to drug-related stimuli, the present work examined the brain activities of the FDA in the absence of such stimuli. This method would allow us to better understand the neural mechanisms underlying drug craving more straightforwardly. With this understanding, an evidence-based treatment plan or rehabilitation programme could potentially be developed to effectively inhibit drug craving at the neural level, thus minimizing the relapse rate.

When drug-abstinent individuals are exposed to drug-related stimuli, the brain areas responsible for craving, reward, motivation, memory, and cognitive control show significant activations [11]. The significant activations in these brain areas (commonly referred to as the reward pathway) have been found to induce drug cravings in drug-abstinent individuals, thus increasing their tendency to relapse [34]. However, less is known about whether similar activation would be observed in drug-abstinent individuals even when there are no drug-related stimuli. Therefore, the primary purpose of this study was to investigate whether the brain areas implicated in drug cravings show significant activation in drug-abstinent individuals without exposing them to drug-related stimuli. This study found seven significantly activated brain clusters when drug-abstinent individuals were at rest. These clusters comprised seven brain areas: the right PrG, left middle MOG, right SPL, right MCgG, bilateral AnG, left SFG, and left SMG. We interpret these findings in relation to those reported previously in the neuroscience literature.

The brain area with the highest peak of activation is the right PrG. The PrG is part of the primary motor cortex and is known for controlling the body’s voluntary motor movement [35]. Activation of the right PrG has been reported in many rs-fMRI studies [36,37,38,39]. In these studies, activation of the PrG during rs-fMRI was attributed to its role in the salience network—a brain network crucial for detecting and responding to internal and external stimuli. The salience network is constantly activated even when one is at rest. Similarly, we attribute activation of the right PrG to the processing and coordination of neural resources. Moreover, studies have not reported the role of the right PrG in drug addiction. The second-highest peak of activation was found for the left MOG, which is primarily responsible for visual processing. The specific role of the left MOG in drug addiction has been under-reported in the literature. Of those that did, most reported a decrease in activation of the left MOG rather than an increase. For instance, it was found that individuals with major depressive disorder and active cocaine addicts had decreased activations of the left MOG [40, 41]. As most studies mainly focused on active drug addicts, there is no available report on the activation of the left MOG in the FDA. As such, we attributed this increase in activation to visual processing, where our participants had to keep their eyes open during the rs-fMRI scans to avoid falling asleep [42,43,44].

Next, we found significant activation of the right SPL, which is responsible for many neuronal activities including visuomotor, cognitive, sensory, working memory, higher order, and attentional [45]. The significant activation of the right SPL in this study aligns with an earlier study demonstrating that drug-related stimuli evoked activation of SPL in heroin-abstinent individuals [11]. The authors mentioned that SPL played a role in motor preparation and output, suggesting that its activation may induce drug craving. Consequently, when viewing drug-related images, heroin-abstinent individuals tend to imagine the action of taking drugs, thus triggering the SPL. Although our study did not require participants to view drug-related images, the significant activation of SPL may suggest a residual neural activity related to motor imagery or planning, possibly linked to their history of drug use.

Apart from that, we also found a significant activation of the right MCgG. This region is part of the limbic system which is involved in reward processing, motivation, emotion, cognitive, motor function, and memory [46]. It has been proposed that the cingulate gyrus serves as a central “hub” in addiction-related neural networks of cognitive functions [47]. In addition to this, increased activation of the right MCgG has been suggested to modulate the reward circuit in individuals with cocaine use disorder [48]. In support of this, a study found that increased activation of this region was associated with increased cocaine craving in cocaine-dependent individuals [49]. Therefore, the significant activation of the right MCgG suggests that drug-abstinent individuals may still crave drugs even at rest. However, this assumption is arguable considering that the participants reported no feeling of craving. The role of the right MCgG in drug addiction remains elusive and warrants further investigations.

Subsequently, this study showed significant activation in bilateral AnG, left SFG, and left SMG. Previous rs-fMRI studies highlighted the role of these three regions as the primary center of DMN, which is mainly involved in mind wandering and internal thinking and is more highly activated during resting or passive conditions rather than during task-specific conditions [41, 50]. They are expected to be involved in internal mental states and become prominent when participants do not engage in external interaction. Significant activation of these regions may be attributed to their role in monitoring internal and external environments [51]. This explanation is plausible given that the participants did not engage in any task-specific condition during the rs-fMRI scans. Moreover, previous studies have not implicated these regions in drug addiction.

In summary, our findings did not support our hypothesis as we initially expected to see significant activation in the reward-related pathway including the insula cortex, basal ganglia, insula, amygdala, parahippocampal gyrus, and DLPFC [16,17,18,19,20]. We firmly believe that the reason behind this may likely be due to the demographics of our participants, which are very different from those of the previous studies. More precisely, our study involved participants who had been drug abstinent for approximately six years, while the participants in the earlier studies on which we based our hypothesis were either active users [16, 17] or had been drug abstinent for less than three months [20]. Therefore, the activation of the reward pathway documented in these studies may be due to their participants’ brains being still sensitive to drug craving. This is plausible provided evidence showing significant brain activations in FDA who had been drug abstinent for up to two years [34]. Our findings suggest that prolonged abstinence may reduce drug-specific brain responses. This is supported by previous reports linking prolonged abstinence with reduced brain reactivity and diminished activation of the reward pathway [51, 52]. The diminished activity in the reward pathway may be due to neuroplasticity—the ability of the brain to recover and restore its normal brain function in affected brain regions over time [53]. This neural adaptation was found in the brains of former marijuana and methamphetamine users following a long period of abstinence for at least 14 mon [54, 55]. Additionally, longitudinal neuroimaging studies provide strong evidence that prolonged abstinence from drug use leads to functional and neurochemical recovery in brain regions associated with reward and craving. For instance, a study found that heroin-dependent individuals with long-term abstinence showed significantly reduced activation in the medial prefrontal cortex, anterior cingulate cortex, and caudate in response to drug cues, compared to those with short-term abstinence [56]. This attenuation of cue-reactivity observed in the long-term abstinence participants was also associated with more stable subjective craving. Similarly, a systematic review examined 45 longitudinal neuroimaging studies involving treatment-seeking individuals with substance use disorders who underwent abstinence for at least two measurement time points [57]. The results consistently showed at least partial neurobiological recovery following abstinence. Structurally, significant regeneration occurred primarily within the frontal cortex, insula, hippocampus, and cerebellum, suggesting substantial restoration of gray matter integrity. Functionally and neurochemically, improvements were observed in prefrontal regions as well as subcortical areas such as the midbrain, striatum, and thalamus. Notably, structural recovery tended to emerge first, followed soon after by neurochemical normalization, and functional improvements, which required longer periods of abstinence. Overall, these findings underline the brain’s remarkable capacity for neuroplastic recovery during sustained abstinence and highlight the importance of timing in treatment interventions and relapse prevention. Based on these reports, the non-significant activation of the reward pathway reported in this study may indicate that the brains of the FDA rewire themselves and begin to normalize after a long period of abstinence. Together, these findings support the interpretation that neuroplastic changes during extended abstinence contribute to the normalization of brain function and reduced vulnerability to relapse. The findings also underscore the importance of long-term abstinence in inhibiting drug cravings and lowering relapse rates.

It is worth noting that this study has several limitations that should be considered when interpreting its results. Firstly, we only reported the brain areas that were significantly activated at rest and did not extend our investigation to connectivity analyses. The reason was that there are currently limited studies investigating the brain networks of the FDA, particularly in those using methamphetamine. Most studies have largely focused on heroin and cocaine users. In this study, we focused on methamphetamine as it is the most abused substance in the authors’ country [58]. As such, we focused on identifying and understanding the activated brain regions before extending our analyses to examine the functional connectivity of these regions. Additionally, as we only focused on methamphetamine, we cannot generalize our findings to other types of substance use (e.g. heroin or cocaine).

Secondly, most studies on this topic focus on active substance users. Of those that examined abstinent individuals, very few focused on methamphetamine. Therefore, the interpretation and discussion of our results are very limited and include findings that are not specific to methamphetamine alone (e.g., including results from cocaine and heroin studies). This limitation indicates that more research is warranted in exploring the brain functions of methamphetamine users, particularly in those who are no longer active users.

The third limitation is the demographics of our participants where we only included male participants, which limits the generalizability of the results to female FDA. Therefore, future studies should consider including both male and female FDA as their participants and compare the findings of both genders. A gender balanced study is recommended to reduce the potential confounding effects, ensure consistency, and enhance the validity of the results. Thus, a more comprehensive understanding of how the brain induces drug craving in male and female FDA could be achieved, allowing for the planning of a treatment that considers possible gender differences.

The fourth limitation is that the non-significant finding of the reward pathway activation may reflect the low sensitivity due to the small sample size. At the beginning of the study, we calculated that the optimal sample size for this study was 24 participants. However, after excluding those who did not meet the eligibility criteria, we were left with only 20 participants. Based on an earlier study suggesting that a sample size of 16 to 32 participants is adequate to achieve good sensitivity in an fMRI study [22], we believed that our number of participants was optimal, even after excluding the four participants. However, given that the results were not statistically significant at the stringent threshold, we should reconsider our understanding of this matter. Moreover, a much more recent fMRI study recommended a sample size ranging between 46 and 72 participants to yield results with high statistical power [59]. Therefore, future fMRI studies on addiction in particular should consider using a large sample size of 46 to 72 participants. Moreover, we did not include a healthy group for comparison as our primary objective was to investigate neural activation patterns within the FDA group. However, the absence of a control group limits the ability to determine whether the observed activations are specific to the FDA or reflect typical resting-state activity. Future studies should include matched healthy controls to clarify this distinction.

While the absence of reward pathway activation in the FDA group may be interpreted as a sign of neuroplastic recovery following long-term abstinence from methamphetamine use, it is important to consider alternative explanations for this finding. One possibility is that the observed null effect reflects limited statistical power, particularly given the relatively small sample size and the variability often observed in neural responses among individuals with a history of substance use. Additionally, task-related factors or residual effects of prior drug use could have influenced the observed activation patterns. Without a healthy control group, it is difficult to determine whether the absence of activation in reward-related regions is specific to the FDA group or reflects a normative resting-state pattern. Although a formal Bayesian analysis could have provided a quantitative estimate of the evidence for the null hypothesis (i.e., absence of activation), we chose not to conduct such an analysis due to the exploratory nature of the study, the single-group design, and the limited sample size. Under these conditions, Bayesian results could be sensitive to prior assumptions and potentially difficult to interpret without appropriate control comparisons. Nevertheless, we acknowledge the value of Bayesian approaches for evaluating null effects and recommend that future studies adopt this framework, particularly in combination with larger, well-powered samples and the inclusion of appropriate control groups. Such designs would allow for a more precise interpretation of the absence of activation in the reward pathway and contribute to a clearer understanding of the neural mechanisms underlying recovery in addiction.

Lastly, we acknowledge that examining functional connectivity represents a key strength of resting-state fMRI and could provide additional insights into the neural mechanisms underlying addiction and recovery. However, due to the scope and objectives of the current research that primarily focused on activation patterns within specific brain regions, functional connectivity analyses were not conducted. Future studies incorporating both activation and connectivity approaches would be valuable to more comprehensively characterize the alterations in brain networks associated with long-term abstinence from methamphetamine use. Despite these limitations, the findings of this study have advanced our understanding of the neural mechanisms underlying addiction in long-term abstinent individuals and contribute to the limited literature on methamphetamine addiction.

Study design

This retrospective cohort recruited 776 patients hospitalized in three tertiary teaching hospitals in Shiraz, Iran, from March to September 2020. We included hospitalized adult patients with COVID-19 confirmed by positive results of real-time RT-PCR from nasopharyngeal oropharyngeal swabs and underwent at least one chest CT imaging without any contrast agents. The patients below 18 years of age and those who lacked positive PCR results or did not undergo chest CT at the initial stage of their hospital admission were excluded. Applying the eligibility criteria, we excluded 87 patients due to a lack of positive PCR report and 123 due to a lack of chest CT or assessable CT imaging. Hence, a total number of 566 patients were included in this study. Afterward, the study population was divided into two groups based on in-hospital mortality status: survivors and nonsurvivors.

All the patients underwent initial laboratory testing such as CBC, coagulation markers, and kidney and liver function tests. Patients at each center received treatment and managed based on a similar national guideline released by Iran’s Ministry of Health and Medical Education (DTFC: Diagnostic Therapeutic Flowchart for COVID-19) [17]. Indications for ICU admission, mechanical ventilation use, and discharging criteria have been described in guideline [17].

Variables

This study collected data on three domains of patients’ demographic features, initial clinical manifestations, disease outcomes, and radiologic findings. Clinically relevant variables included sex, fever, dry cough, dyspnea, admission to intensive care units, and mortality status. Regarding laboratory variables, leukopenia was defined as WBC count < 4.0 × 10⁹ per liter, thrombocytopenia as PLT count < 150 × 10⁹ per liter, and lymphocytopenia as lymphocyte count < 1.5 × 10⁹ per liter. Reviewing CT images, we recorded radiologic findings, including crazy paving pattern, halo sign, reversed halo sign, air bronchogram, pleural effusion, GGO/consolidation, and mediastinal lymphadenopathy (Fig. 1).

Validation of visual severity scores

We searched the electronic database using the keywords of “prognostic modeling,” AND “COVID-19,” AND “CT findings”. We reviewed 13 related papers with the development of a prognostic model identifying COVID-19 patients at high risk of mortality. Then, three articles were chosen based on sample size, methodology, and their proposed prognostic models. Upon quality assessment of the radiologic-based scoring component of these selected models, three CT severity scoring systems [12,13,14] were finally selected to be validated in this study, and their respective variables were investigated. Table 1 summarizes the details about the function and interpretation of the selected radiologic models. All the patients were evaluated by three prognosis-predictive models of COVID-19. We extend our analyses to propose the most fitting model according to results obtained from our study population (Table 1).

The data required to validate selected prognostic models include patients’ demographic features, clinical history, laboratory results, and radiologic findings. All data were registered in patients’ medical records at the hospital admission course. Also, these patients received the necessary medical treatment and supportive care during their hospitalization course. The review of the selected articles clarified three systems of radiologic severity scoring as follows:

• 15-Score model Wang et al. [13] introduced a prognostic model with a maximum score of 15

• 20-Score model Tabatabaei et al. [14] defined a CT-based predictive model with a sum score ranging from 0 to 20

• 24-Score model Zheng et al. [12] introduced a prognostic nomogram based on clinical and CT features with a sum score ranging from 0 to 24

CT-scan acquisition

All the patients underwent chest CT-scan without contrast injection with a single inspiratory phase while holding their breath. The acquisition of images in all centers was conducted in the supine position of the patients using a multidetector 16-section scanner (GE Medical Systems, Milwaukee, WI, USA). The tube voltage was set at 120 kV for all scans. The CT images included the whole extent of the chest and the upper portion of the abdomen. The CT apparatus photographed the images with a 1.25–2-mm thickness and intervals of 1.25 mm.

The patients’ CT images were reviewed and analyzed by a certified expert radiologist (with more than 15 years of experience) blinded to the disease outcomes, clinical presentations, demographic features, and laboratory profile. The radiologist stratified the severity of pulmonary involvement according to each scoring system, as explained in Table 1. Each scan was evaluated for GGO, consolidation, crazy paving, halo sign, reversed halo sign, air bronchogram, pleural effusion, and lymphadenopathy. The definition of these CT manifestations had been previously explained in Fleischner’s Glossary of Terms for Thoracic CT [18]. Further, the CT images were evaluated for changes in liver density as described previously [12,13,14]. We categorized opacification patterns into GGO, consolidation, and mixed GGO and consolidation. Also, mediastinal lymphadenopathy was considered when the axial diameter of lymph nodes exceeded 1 cm.

Statistical analysis

The data obtained were analyzed by SPSS v.24 software. All the qualitative data were presented in frequency and percentages. These categoric variables were compared between groups using the Chi-square test. On the other hand, quantitative data were presented in median (IQ2) due to non-normal distribution. These continuous variables were compared using a nonparametric Mann–Whitney U test. We compared the CT findings across the survivor and nonsurvivor groups using linear-by-linear association.

The external validation was performed using a logistic multivariate regression model. At this step, each radiologic severity scoring system was independently assessed with three variables of age, gender, and lymphocyte count by multivariate logistic regression model. Our statistical goal was to predict the mortality outcome (Y or dependent variable) based on predictor factors (X or independent variables). Four variables were chosen to build a multivariable prediction curve to avoid overfitting bias. It means that the independent variables should minimally show inter-dependence on each other. We conducted a correlation analysis between the predictors to avoid multicollinearity in the regression model. The correlation for each pair of these four variables was separately calculated before including them in the logistic regression model. Finally, to identify the COVID-19 patients with a high risk of mortality in the most accurate fashion, we conducted ROC analysis to determine the most optimal system of radiologic severity scoring. A significance was considered when P < 0.05 for all the analytic tests.

The discussion paper (28-page // 519KB PDF), published by the Australian Treasury, highlights the need to reduce the regulatory burden for investors where possible; increase support for more efficient administration of the framework by regulators; and make the framework easier to navigate for investors and stakeholders. Consultation on the discussion paper closes on 12 December.

Joni Henry, an expert in corporate mergers and acquisitions at Pinsent Masons, said: “These proposed reforms are a positive step because Australia is reviewing far more foreign investments, relative to its size, than comparable countries which impacts the attractiveness of Australia as an investment destination.”

“The majority of the applications to the Foreign Investment Review Board are low-risk and passed with minimal conditions, but the applications take time and delay investment,” she said.

“The regulatory burden imposed on many investors is disproportionate to the risks involved.”

The legislative reforms will focus on streamlining and strengthening the foreign investment framework and ensuring that Australia remains an attractive destination for global capital, while managing “evolving risks to the national interest and national security in an increasingly challenging international security environment,” according to the Australian Treasury.

Andrew Fisken, an expert in cross-border mergers and acquisitions at Pinsent Masons, said: “If implemented, these reforms can help streamline foreign investment while still protecting Australia’s national interests and security. We encourage interested parties to read through the discussion paper and consider making a submission.”

Currently, the criteria for mandatory screening of foreign investments are based on monetary thresholds, sectors and the profile of investors. Potential investor proposals are considered as either requiring review or not, resulting in the same regulatory burden being imposed regardless of the level of risk posed to national interests or national security.

The federal government is seeking feedback on whether new categories of lower risk investments, defined by objective criteria, should be subject to a notification requirement only, rather than require review and approval before the investment can be made.

Feedback is also being sought on other potential reforms to reduce regulatory costs, including whether reporting requirements can be reduced by enabling reporting on behalf of others for a single transaction and changing the types and range of transactions that are reportable.

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A battle for control of a little-known chipmaker has threatened global auto production by choking off the semiconductor supply chain, though there are signs the crisis is inching toward a resolution.

The power struggle over Nexperia, a Chinese-owned Dutch semiconductor maker, highlights how technology supply chain vulnerabilities are squeezing auto makers, most notably forcing Honda to halt production at a Mexican factory making its popular HR-V crossover for North American markets. It also exposes how Europe is caught in the middle of the wider geopolitical showdown between Washington and Beijing.

Here’s a look at the dispute:

The turmoil erupted into public view in mid-October, when the Dutch government announced it had invoked a rarely used World War II-era law to take effective control of Nexperia weeks earlier.

The Dutch ministry of economic affairs said it took action because of national security concerns. Officials said they intervened because of “serious governance shortcomings” at Nexperia, asserting control to prevent the loss of crucial tech know-how that could threaten Europe’s economic security.

Nexperia’s Chinese owner Wingtech Technology, a partially state-owned company, is at the heart of the dispute. Amid the boardroom battle, a Dutch court granted the ministry’s request to oust Nexperia’s Chinese CEO Zhang Xuezheng. American officials told the Dutch government he would have to be replaced to avoid trade restrictions, according to a court filing.

Nexperia makes simple semiconductors such as switches and logic chips. The auto industry — one of Nexperia’s biggest markets — uses its chips for numerous functions, such as adaptive LED headlight controllers, electric vehicle battery management systems and anti-lock brakes.

Headquartered in the Dutch city of Nijmegen, Nexperia was spun off from Philips Semiconductors two decades ago. It was eventually purchased by China’s Wingtech Technology in 2018 for $3.6 billion.

Nexperia has wafer fabrication plants in Britain and Germany. It operates an assembly and testing center in China’s southern manufacturing heartland of Guangdong — which accounts for around 70% of its end-product capacity — and similar centers in the Philippines and Malaysia.

The dispute is part of the broader struggle between the U.S. and China over tech supremacy, which has left Europe caught in the middle.

It stems from Washington’s decision late last year to place Wingtech on its “entity list,” which subjects companies to export controls because of national security risks. In late September, the U.S. expanded that list to Wingtech’s subsidiaries, including Nexperia, pressuring allies to follow suit.

After the Dutch government asserted control of Nexperia, Beijing responded soon after, blocking the export of Nexperia chips from its assembly plant in the Chinese city of Dongguan. It blamed the Netherlands for “turmoil and chaos” in the chip supply chain.

There were signs of hope following last month’s high-profile meeting between U.S. President Donald Trump and Chinese leader Xi Jinping, when the White House said Beijing would ease the export ban as part of a U.S.-China trade truce.

Despite Beijing also confirming exports would be allowed to resume, Nexperia’s Chinese unit said headquarters suspended shipments of wafers used to make chips to its Chinese factory, potentially crimping its ability to deliver finished products.

Nexperia’s head office hit back in a statement Wednesday, saying the Chinese unit refused to pay for the wafers and accused it of “ignoring the lawful instructions” from its global management team. The company said it can’t guarantee the quality of any chips delivered from its China plant since October 13.

Modern automobiles rely on so-called discrete chips made by companies like Nexperia, which, unlike more advanced microprocessors, perform a single function. Leaders at big carmakers spelled out their worries in the latest round of earnings calls, saying that finding a replacement for Nexperia at scale in the short term will be difficult.

“While Nexperia makes up only about 5% of the automotive silicon discrete market in term of revenue, its share is much higher in terms of discrete chip volume,” S&P Global Mobility analysts wrote in a recent note.

Nexperia’s parts are widely used across vehicle systems — often dozens to hundreds per vehicle — and carmakers in North America, Japan and South Korea are at risk, they added.

“It’s an industrywide issue. A quick breakthrough is really necessary to avoid fourth quarter production losses for the entire industry,” Ford CEO Jim Farley said.

General Motors CEO Mary Barra warned that production could be hit. The company has “teams working around the clock with our supply chain partners to minimize possible disruptions,” she said.

Nissan CEO Ivan Espinosa told CNBC that the company is setting aside a 25 billion yen ($163 million) provision for supply risks, in part to “absorb” the impact from the Nexperia crisis on production.

Mercedes-Benz is “scurrying around the world to look for alternatives,” CEO Ola Kallenius said. The European Automobile Manufacturers’ Association said members including BMW, Renault, Volkswagen and Volvo have been forced to use their reserve stockpiles of chips and warned of assembly line stoppages if they run out.

The European Union’s trade commissioner, Maros Sefcovic, on Saturday noted “encouraging progress,” writing on X that China’s Commerce Ministry had confirmed “further simplification” of export procedures for Nexperia chips to the EU and global customers.

In Beijing, the Commerce Ministry also said Saturday that it agreed to a Dutch request to send representatives to China for “consultations.”

But it noted that the Netherlands had not taken any concrete actions yet to restore the global semiconductor supply chain since the Dutch government said days earlier it would take “appropriate steps on our part where necessary.”

Economics Affairs Minister Vincent Karremans had said in that statement that “the Netherlands trusts that the supply of chips from China to Europe and the rest of the world will reach Nexperia’s customers over the coming days.”

Honda has received word that Nexperia’s shipments from China have resumed, Executive Vice President Noriya Kaihara told reporters Friday. He said the Japanese automaker expects to resume production during the week of Nov. 21 at its plant in Celaya, Mexico, which can make up to 200,000 vehicles a year.

Published – November 10, 2025 09:34 am IST

Story Continues

The mistrial was confirmed by William Fick, a lawyer for Anton Peraire-Bueno at Fick & Marx [File]
| Photo Credit: REUTERS

Thailand’s position as a manufacturing and logistics hub makes customs management a central factor in investment and supply-chain decisions. In 2024, Thailand recorded US$300.53 billion in exports and US$306.81 billion in imports, reflecting its high trade integration within global supply networks. For foreign companies, the ability to align free trade agreements (FTAs), tariff classification, and duty recovery mechanisms determines not only compliance efficiency but also margin stability.

These instruments operate best when used together as a single cost-management system. By integrating them within a coordinated framework, companies can achieve both regulatory certainty and predictable landed costs in Thailand’s trade environment.

Understanding Thailand’s customs environment

Thailand’s customs framework operates under the Customs Act B.E. 2560 (2017), administered by the Thai Customs Department under the supervision of the Ministry of Commerce. The Act modernized valuation, classification, and post-clearance audit procedures, replacing the 1926 law.

Digital reforms such as the National Single Window and the electronic certificate of origin (e-CO) platform have accelerated customs processes and improved traceability. These systems enable businesses to integrate trade documentation with enterprise resource planning tools and monitor import and export flows in real time.

Thailand participates in ASEAN, the Regional Comprehensive Economic Partnership (RCEP), and bilateral trade agreements with Japan, China, Australia, and India. Each framework offers different tariff concessions and documentation requirements, making the choice of mechanism dependent on a company’s sourcing model and compliance capability.

Using FTAs and HS classification for tariff advantage

Effective duty planning begins with precise product classification under the ASEAN Harmonized Tariff Nomenclature (AHTN 2022), which determines base duty rates, licensing requirements, and eligibility for preferential treatment. Where uncertainty exists, importers may request a binding tariff classification ruling from Thai Customs before importation to ensure certainty and avoid reassessment.

Preferential tariff rates apply when goods meet the rules of origin (ROO) established under an FTA and are accompanied by a certificate of origin, such as Form D under ASEAN or Form AJ under ASEAN–Japan. Rules of origin vary by product and agreement, covering criteria such as regional value content or change in tariff heading. Businesses should apply the specific product rule rather than rely on generic thresholds.

When production relies heavily on regional inputs, FTA use can reduce or remove tariffs with manageable documentation requirements. When supply chains depend on global sourcing or record-keeping is inconsistent, paying the Most Favored Nation (MFN) rate may be safer to avoid post-clearance reassessment.

Under the 2017 Customs Act, misclassification or unsupported origin claims can attract penalties of up to four times the unpaid duty and possible seizure of goods. For firms with regular shipments, linking HS codes and FTA eligibility within automated systems helps maintain compliance and capture savings sustainably.

Choosing between duty drawback and duty suspension

Thailand allows duty drawback for imported inputs used in export production under Section 19 bis of the Customs Act, administered by the Duty Drawback and Compensation Division. To qualify, companies must demonstrate a traceable link between import entries, production records, and export documentation. Claims must be submitted within prescribed timelines, and refunds are issued once Customs verification is complete.

Where liquidity or mixed domestic and export sales are key concerns, free zones and bonded warehouses permit duty suspension until goods enter the domestic market. These facilities fall under Thai Customs supervision and, in some cases, align with Board of Investment (BOI) or industrial-estate programs.

The choice between refund and suspension depends on a firm’s export ratio, documentation discipline, and cash-flow needs. Export-heavy manufacturers often gain more from duty drawback, while regional distributors may benefit from deferred-duty schemes. Firms should evaluate refund lead times and administrative costs against deferred-payment advantages using their internal production and logistics data.

Integrating Customs Strategy with Business Operations

Manufacturers with investment promotion can combine preferential tariffs with drawback mechanisms where exported goods meet both BOI and Customs requirements. Importers and distributors outside the BOI regime should maintain strict classification governance and complete origin records to minimize audit exposure under Thailand’s risk-based inspection system.

For multinational enterprises using Thailand as a regional logistics base, Free Zone and Bonded Warehouse structures offer the flexibility to consolidate imports, defer duties, and re-export throughout ASEAN. In 2024, total U.S.–Thailand goods trade reached US$81.2 billion, reflecting the strategic scale of Thailand’s role as a regional manufacturing and re-export hub. The most efficient customs configuration depends on a combined assessment of landed cost, refund timing, audit risk, and administrative capacity.

Properly designed, customs management functions as a form of operational governance, aligning compliance with financial control.

Sustaining compliance and governance

Customs compliance in Thailand demands continuous oversight. Annual reviews of tariff classifications, verification of rules of origin, and ongoing updates to internal systems are necessary as trade agreements evolve. Maintaining complete digital archives of import, origin, and refund documentation enables a rapid response to audit inquiries. Cooperation with licensed Thai customs brokers and trade advisors supports accuracy in submissions and ensures alignment with current procedures.

Proactive governance preserves transparency with authorities and enables foreign investors to sustain predictable cost structures as Thailand’s trade environment continues to evolve under regional integration. Effective customs governance ultimately protects both compliance integrity and profit margins.

Namnyak, a Maasai herder in north Tanzania, fears a carbon credit scheme linked to Volkswagen — dismissed by NGOs as “greenwashing” — could destroy her community’s way of life.

Under the scheme, local Maasai are being offered money to keep their cattle on a strict “rotational grazing” scheme so that the grass grows longer and captures more carbon.

The idea is that Volkswagen, and possibly other companies, will pay for this through “carbon credits” which are supposed to offset carbon emissions from its factories and operations.

Many researchers and NGOs question the whole concept, saying such schemes disrupt local communities while doing little to improve the environment, existing only to allow companies to keep polluting elsewhere.

The scheme in northern Tanzania is run by Volkswagen partner Soils for the Future Tanzania (SftFTZ), covering the districts of Longido and Monduli, an area of 16,000 square kilometres (6,200 square miles) — roughly 20 times the size of New York City.

For Namnyak, a 33-year-old mother of three in Longido, it seems absurd.

Local Maasai have been sustainably living on the land — rotating grazing in line with the weather and seasons — for centuries.

Many locals, she said, fear the company has ulterior motives and may one day seize their land.

“It does not matter how much money they give us. We depend on our land for our cattle, our crops and our beekeeping. This is our lives, and the ones of the future generations,” she told AFP.

– ‘Implausible’ –

SftFTZ and Volkswagen deny any desire to take their land, but many locals remain suspicious and feel they are getting money for nothing.

A 2023 study of a similar scheme in neighbouring Kenya by Survival International, an NGO supporting Indigenous communities around the world, found it was “highly implausible” that the new grazing regime was actually being implemented.

“To the contrary, the vegetation appears to continue to deteriorate in large parts of the project area,” it said.

Verra, the main international body that validates carbon credit projects, suspended credits from a major forestry project in Zimbabwe in September, for which Volkswagen was also a client, saying its benefits had been exaggerated.

Verra told AFP it had yet to audit the project in Tanzania, or a competing carbon credit scheme proposed by US-based Nature Conservancy in the same region.

– ‘Scam’ –

Several researchers and NGOs believe the Maasai are unwitting participants in a vast “greenwashing” scheme by Volkswagen.

“Ultimately, there is nothing done for the land, not even a tree is being planted,” said Maasai lawyer Joseph Oleshangay, calling the whole thing a “scam”.

“Why is Volkswagen not doing this in Frankfurt or New York? Because they feel people here are easier to manipulate,” he added.

SftFTZ is offering the local Maasai $2 per hectare to sign a 40-year contract, under which they promise to move their cattle roughly every two weeks.

Some have agreed since that amounts to huge sums by local standards, said Namnyak: “If someone gives you free money, who will refuse it?”

Sherie Gakii, advocacy officer for Greenpeace, said such projects only existed to let companies like Volkswagen “continue polluting and making big profits on the backs of indigenous people trying to protect their ancestral land”.

Volkswagen’s environmental arm, ClimatePartner, strongly disagrees.

It told AFP the carbon credits would be “based on scientifically validated measurements” including regular soil samples to ensure that carbon capture was increasing.

A Verra spokesperson defended carbon credit schemes as “one of the few vehicles that bring sustained investment into rural areas”.

The SftFTZ contract promises to give 51 percent of the value of all carbon credits sold to the local community.

But the Maasai International Solidarity Alliance, an NGO, questions whether that money will ever materialise and has called for a five-year pause on all such schemes until they can be properly evaluated.

Benja Faecks of think tank Carbon Market Watch told AFP the focus should be on getting companies to stop polluting in the first place.

“When a company like Volkswagen or Danone or Nestle can buy these credits and claim they are carbon neutral… that’s misleading and false,” said Faecks.

“Volkswagen should focus on phasing out the internal combustion engine.”

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