Thailand BOI: Promoted Activities: Mining, and Base Metals

November 19 2012 Categories: @ Thailand Investment Blog, BOI Promotion Thailand No comments yet

What are the mining and base metals activities eligible for promotion under section 2 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 2:

List of activities eligible for promotion and their conditions
Section 2 Mining, Ceramics and Base Metals
Activities	Conditions and privileges
2.1 Mineral ore prospecting	-
2.2 Mining or ore dressing (except tin)	For mining, a mining license must be obtained from the Department of Mineral Resources prior to the issuance of the promotion certificate.
2.3 Marble or granite mining	A mining license must be obtained from the Department of Mineral Resources prior to the issuance of the promotion certificate.
2.4 Manufacture of ceramic products	-
2.4.1 Stoneware	-
2.4.2 Porcelain	-
2.4.3 Bone china	-
2.5 Manufacture of glass or glass products	-
2.6 Smelting	-
2.7 Manufacture of metal powder	-
2.8 Manufacture of ferro-alloy	-
2.9 Manufacture of up-stream and intermediate steel(16)	Investment projects in steel the industry which also manufacture up-steam steel must have a debt ratio to registered capital less than 2:1.
2.9.1 Manufacture of up-stream steel such as Hot Metal, Pig Iron, Sponge Iron, Direct Reduction Iron – DRI and Hot Briquetted Iron (HBI)	Conditions for manufacture of up-stream steel Classified as a priority activity of special importance and benefit to the country - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone without being subject to corporate income tax exemption cap - Projects located in Zone 3 are entitled to benefits under section 35(1), 35(2) and 35(3).
2.9.2 Manufacture of intermediate steel such as Slab, Billet and Bloom	Conditions for manufacture of intermediate steel 1. Rights and benefits shall be granted according to BOI Announcement No 1/2543. 2. The production process of intermediate steel developed from up-steam steel within the same project is classified as a priority activity of special importance and benefit to the country and shall be granted privileges as follows: - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone without being subject to corporate income tax exemption cap 3. Projects located in Zone 3 are entitled to benefits under section 35(1), 35(2) and 35(3). 4. Projects located in Zone 3 are entitled to benefits under section 35(1), 35(2) and 35(3).
2.10 Manufacture of down-stream steel products (17)	-
2.10.1 Manufacture of long steel products such as steel wire rods, wires, shafts and bars	-
2.10.2 Manufacture of flat rolled steel products such as hot and cold rolled stainless steel sheets, steel plates, hot or cold rolled steel sheets and coated steel sheets	-
2.11 Manufacture of steel pipes or stainless steel pipes	-
2.12 Manufacture of iron or steel casting	Casting of metal parts using an induction furnace is classified as a priority activity - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone
2.13 Manufacture of forged steel parts	Classified as a priority activity - Exempt from import duty on machinery, regardless of zone - Corporate income tax exemption for eight years, regardless of zone
2.14 Rolling, drawing, casting or forging of non-ferrous metals	-
2.15 Manufacture of fire-resistant materials or heat insulation	-
2.16 Manufacture of ceramic roof tiles	-
2.17 Manufacture of gypsum board or gypsum products	-
2.18 Coil center (18)	1. Entitled to rights and benefits under section 36(1) and (2) 2. Other rights and benefits on non-tax privileges shall be granted.
(16) Please see Board of Investment Announcement No. 2/2548 dated February 11, 2005 (17) Please see Board of Investment Announcement No. 2/2548 dated February 11, 2005 (18) Please see Board of Investment Announcement No. Sor 12/2547 dated December 28, 2004 SOURCES: http://www.boi.go.th/english/about/section2.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

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 2009-08-03 07:09:13.

Doing Business in Thailand