Thailand BOI: Promoted Activities: Chemicals, Papers, Plastics

May 24 2010 Categories: Thailand BOI, Thailand Business No comments yet

What are the activities eligible for promotion under section 6 of the BOI list?

Reminder: As you already know the Board of Investment is the agency in charge of promoting certain sectors of Thai economy. As such the BOI role is among other to determine:

What are the activities which are eligible for promotion

What are the conditions attached to said promotion

What are the privileges attached to said business activity

The activities that are promoted are divided in seven sections as follows: Section 1: Agriculture and Agricultural Products; Section 2: Mining, Ceramics and Basic Metals; Section 3: Light Industry; Section 4: Metal Products, Machinery and Transport Equipment; Section 5: Electronic Industry and Electric Appliances; Section 6: Chemicals, Paper and Plastics; Section 7: Services and Public Utilities.

The table below is a list of the activities promoted by the BOI under Section 6:

Note that whenever there is a blank or a – in the condition section it relation to an activity it means that the activity does not have special conditions attached.

List of activities eligible for promotion and their conditions
Section 6: Chemicals, Papers and Plastics
Activities	Conditions and privileges
6.1 Manufacture of basic chemicals6.1.1 Aluminum Oxide6.1.2 Aluminum Hydroxide 6.1.3 Magnesium Hydroxide 6.1.4 Potassium Hydroxide 6.1.5 Ammonium Sulphate 6.1.6 Ammonium Bicarbonate 6.1.7 Calcium Carbide 6.1.8 Calcium Chloride 6.1.9 Magnesium Chloride 6.1.10 Potassium Bicarbonate 6.1.11 Sodium Phosphate 6.1.12 Sodium Silicate 6.1.13 Ethyl Alcohol 6.1.14 Acetic Acid 6.1.15 Citric Acid 6.1.16 Glutamic Acid 6.1.17 Hexahydric Alcohol (Sorbital) 6.1.18 Polyether Polyol 6.1.19 Chlorinated Paraffin 6.1.20 Formaldehyde	The production must utilize a chemical process
6.2 Manufacture of other chemicals, except (54)(1) Industrial Gases(2) Calcium Oxide (3) Silicon Dioxide (4) Zinc Oxide (5) Sulfuric Acid (6) Calcium Hydroxide (7) Aluminum Sulphate (8) Potassium Aluminum Sulphate (9) Calcium Carbonate (10) Calcium Phosphate (11) Sodium Hypochlorite (12) Calcium Hypochlorite (13) Paraffin & Wax	1. The production must utilize a chemical process.2. Manufacture of silicone monomer and polymer is regarded as a priority activity of special importance and benefit to the country and promoted projects will not be subject to any cap on the amount of corporate income tax exemption
6.3 Manufacture of fertilizers	-
6.4 Manufacture of pesticides or herbicides	-
6.5 Manufacture of petrochemicals	-
6.6 Oil refineries	Regarding tax and duty privilege, only exemption of import duty on machinery will be granted for both Zone 2 and 3.
6.7 Manufacture of dyes and pigments (except paints)	-
6.8 Manufacture of Medicine and/or ActiveIngredients in Medicine (55)	1. The promoted project must achieve GMP standards prescribed by PIC/S within two years of the date the project commences operations2. Rights and benefits will be granted as follows:2.1 Exempt from import duty on machinery regardless of zone 2.2 Exempt from corporate income tax, as follows: - Exempt for five years if project is located in Zone 1. - Exempt for six years if project is located in Zone 2. - Exempt for seven years if project is located in an industrial estate or promoted industrial zone. Exempt for eight years if project is located in Zone3 - Other rights and privileges will be granted according to Board of Investment Announcement No. 1/2543. 3. Rights and benefits will not be granted for investment in developing skills, technology and for innovation according to the criteria of granting additional privileges.
6.9 Manufacture of plastic or plastic coated products6.9.1 Consumer products6.9.2 Parts or components for industrial goods	-
6.10 Manufacture of pulp	-
6.11 Manufacture of paper	-
6.12 Manufacture of paper containers or boxes	-
6.13 Manufacture of fiber, pulp, paper or paperboard articles	-
6.14 Production of printed matter (56)	Promoted activities utilize modern production processes, as approved by the BOI, covering any one or more of the following:- Pre-press process- Press process - After press process
6.15 Manufacture of body care products	-
6.16 Manufacture of high-purity or precision blended Gas (57)	1. High-precision manufacturing and analyses processes must be used in the production of the manufactured gas and have traceability specifications in accordance with national and international standards.2. The project must hold ISO9001 certification for production processes and ISO/IEC 17025 certification for laboratory operations.3. Production processes must utilize gravimetric (weight-based rather than volume-based) filling processes.
(54) Please see Board of Investment Announcement No. Sor 6/2550 dated September 14, 2007(55) Please see Board of Investment Announcement No. Sor 1/2549 dated March 20, 2006 56) Please see Board of Investment Announcement No. 4/2546 dated September 23, 2003 (57) Please see Board of Investment Announcement No. Sor 4/2547 dated July 29, 2004 SOURCES: http://www.boi.go.th/english/about/section6.pdf

Note: While we are exercising our best endeavors to maintain on this blog only updated information BOI elegible activities is a work in progress. Therefore always double check the information above with the list of the BOI

Note: This post is an excerpt of Rene Philippe Dubout next book: “How to Invest Safely Into Thailand” to be published in January 2010

About the Author:

The author Rene-Philippe DUBOUT is a lawyer since 1990 when he was admitted to Geneva bar (Switzerland). He practiced as a litigator there for 10 years until he moved to Thailand in 1999. In 2002 he founded with a group of Thai lawyers Rene Philippe & Partners Ltd a local law firm that specialized in Cross Borders Investments and Real Estate. He has been lecturing in several Thai Universities and a speaker to numerous conferences and seminars. He is the author of a must read book:”How to Purchase Real Estate Offshore Safely: The Case of Thailand”.

http//:www.renephilippe.com

Originally posted 2009-08-05 15:11:55.

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