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Free Trade Zone in Thailand

Free Trade Zone in Thailand

Industrial Estate Authority of Thailand Act, B.E. 2522, establishing the Industrial Estate Authority of Thailand. Thailand became a state enterprise under the Ministry of Industry, abbreviated as “I-EA-T” with several objectives in establishing, starting from the acquisition of suitable land for the establishment or expansion of industrial estates or to operate of other businesses that would be beneficial.

Conduct land improvements to provide services as well as provide operational facilities, including the public.

For industrial operators in industrial estates, industrial estates are divided into 2 types: General industrial area which is a designated area for industrial and business operations benefits or related to the industry export industrial area which is the area designated for the operation of industries, services for exporting goods to be sold abroad, and other activities that are beneficial to or related to the business of industry, trade or services for exporting goods to be sold abroad

At present, the export industry There are 10 customs offices located:

1. Ladkrabang Industrial Estate (Bangkok)
2. Bangpoo Industrial Estate (Samut Prakan)
3. Northern Industrial Estate (Lamphun)
4. Laem Chabang Industrial Estate (Chonburi)
5. Bo Win Industrial Estate (Chonburi)
6. Ban Wa Industrial Estate (Ayutthaya)
7. Bang Pa-In Industrial Estate (Ayutthaya)
8. Placing Yao Industrial Estate (Gateway City) Chachoengsao)
9. Southern Export Industrial Estate (Songkhla)
10. Phichit Industrial Estate (Phichit)

In which the Industrial Estate Authority of Thailand has provided tax incentives to operators. Export industry in industrial estates of the Industrial Estate Authority of Thailand The Customs Department, which is responsible for regulating and be responsible for government taxes and for the promotion of exports to entrepreneurs’ general industry and export industrial zone Therefore, regulations for industry practice must be established.

Customs procedures that should be known for entrepreneurs in industrial estates

(1) Customs clearance in the export industrial zone

1.1 Entrepreneur submits an import declaration to a friend The importer of goods into the export industrial zone must have a letter from the Industrial Estate of Thailand (IEAT) as an entrepreneur in the export industrial zone attached to the part. In the case of a lieutenant under Section 48 of the Industrial Estate Authority of Thailand Act B.E. 2522 B.E. Additional duties from the Industrial Estate Authority of Thailand.

1.2 An importer who is an Industrial Estate Authority of Thailand with a letter certifying that he is an industrial operator who is a transport operator must sign a contract of insurance with the Customs Department in accordance with the prescribed form and the transport must follow the route specified by the Customs Department. too

(2) Customs formalities in general industrial zones If an operator in a general industrial zone wishes to perform formalities at an industrial customs office, the same shall be done as a customs procedure in an exporting industrial zone. with evidence showing that The general industrial area operators of the industrial estates are also present to the authorities.

(3) Responsibility for unloading goods from ports or imported into industrial estates. The importer will be responsible for damages to the taxes and duties. charges or damages any other things as the insurance contract has been made with the Customs Department

(4) Taking goods out of the export industrial zone for use or distribution in the country.

4.1 Entrepreneurs can take goods out of the export processing zone for use or distribution in the country. The obligation to pay taxes must submit an import declaration and a letter of authorization for the importation of goods from the export industry for use or distribution in the country. the country of the IEAT to the customs office of the IEAT

4.2 For the product price account to declare the trading price in Thai Baht The Customs Department will proceed with Imported goods as one import importing goods from abroad And such items will be subject to special fees under investment promotion law, import duties and excise taxes. Interior tax and VAT according to the condition, price, and tax rate that exists on the date the goods are taken out of the export industrial zone. It is considered as having been imported into the Kingdom on the date of removal from the export industrial zone.

4.3 Assessment price or the price used as a basis for tax calculation For industrial zones that are taken out of the export industrial zone for use or distribution in that Kingdom Two customs prices under Section Customs Act, B.E. 2469.

(5) Exporting goods from industrial zones for export to foreign countries by government agencies.

5.1 Entrepreneurs can bring goods out of the export industrial zone to be exported to foreign countries by government agencies. service and submit an application in the form prescribed by the Customs Department with 1 copy to the ceremonial unit of the settlement inspection industry as well as entering into an insurance contract with the Customs Department in accordance with the prescribed form. The insurance must be worth the duty and tax of the items listed in the letter filed with the Customs Department plus an additional 20 and Allow the merchant to insure themselves.

5.2 When the customs office of the industrial estate consider granting permission and will return the original book back to Entrepreneurs to control goods brought from the export industrial zone to deliver to the government agency for export outside the kingdom.
5.3 When that government agency have exported goods out of the Kingdom An entrepreneur must submit a certificate certifying that the government agency has actually exported the goods to the customs office of the industrial estate within 30 days from the date that the government agency has sent the goods, otherwise it will be considered a breach of insurance contract and the Customs Department. The contract will be enforced immediately.

(6) Temporary removal of goods from the export industrial zone for other purposes.

6.1 Entrepreneurs can bring goods in the export industry. temporarily leave the export processing zone for repairs, modifications, improvements or other purposes as necessary by submitting a request to the customs office Industrial Estate and make an insurance contract with the Customs Department According to the prescribed form, the insurance money under the insurance contract must be worth the duty and tax of the items listed in the request. by adding an additional 20 percent

6.2 In the event that the operator is unable to bring goods taken from the Export Processing Zone back into the Export Processing Zone according to the certificate provided, the entrepreneur can apply for an extension of the return period. Industrial zones can only be exported once. and the period of time does not exceed the previous request to take out the goods, unless there is a reasonable cause, the period shall be extended more than 1 time
6.3 If any operator does not comply with the assurances provided That operator must pay the tax. Additional 1% per month From the date of taking out of the goods until the date of the payment to be completed within 15 days from the due date.

(7) Bringing goods into the Kingdom into the export industrial zone. The Kingdom can enter the export industrial zone by submitting a request to bring goods in the Kingdom into the industrial zone. Export (KorSorKor122). to the customs officer in the industrial estate

(8) Goods imported into the export industrial zone for repair and re-exported without the exemption of duties under the Customs Tariff Act, B.E. 2530, Region 4, Category 2, must be goods imported into the Kingdom by Taxes have been paid in full and must be approved by the Industrial Estate Authority of Thailand (IEAT).

(9) Goods imported into an industrial zone, exported and brought back into the Kingdom. with exemption from duty, request for the Kingdom or foreign goods imported into the Kingdom and have already paid the duty area if imported in export industry and after being taken out of the exporting industrial zone back into the Kingdom without changing its appearance or shape in any way will be exempt from duty. Industry of Thailand to show as well.

Tax incentives for entrepreneurs in industrial estates

(1) Exemption from special fees under the law on investment promotion, import duty, value added tax Excise for machinery equipment, tools and appliances including the components of such things Manufacture and goods used to build a factory or building

(2) Exemption from special fees under the law on investment promotion, including import duty, value tax, excise tax on goods imported for use in the production of goods.

(3) exemption from export duty, value added tax and excise tax which has been imported under Section 49 of the Industrial Estate Authority of Thailand Act, B.E. 2522, including by-products and other things. production and export

(4) exemption or refund of tax on goods subject to the provisions of law to be exempted or refund tax when exported out of the Kingdom or if the operator is exempt from duty on raw materials according to 2520 B.E., or operators who are a bonded warehouse in the category of a factory under section 8 bis 2) (of the Customs Act 2469 B.E. customs (No. 9), 1939 Send goods into the export industry. will be exempt from tax or refund the same tax and duty as when exporting out of the Kingdom

(5)Selling goods or providing services between entrepreneurs located in the export industrial zone. whether in the area same industry or not Pay VAT at zero rate

(6)Selling goods or providing services between bonded warehouses and operators located in industrial zones shall pay VAT at zero rate.

(7) Bringing domestic goods into the export industrial zone Pay VAT at zero rate regarded as an export

Source: Customs Department