| Investment Privileges from I-EA-T |
| I-EA-T FREE ZONE: ENHANCED INVESTMENT POTENTIAL AND OPPORTUNITY IN AN INDUSTRIAL ESTATE |
For over three decades, as a state enterprise established under the Industrial Estate Authority of Thailand Act B.E. 2522 [1979], the Industrial Estate Authority of Thailand (I-EA-T) has been carrying out its roles and responsibilities to develop ideal industrial estates perfectly equipped with an extensive range of infrastructure and facilities, coupled with a full-scale administrative system and numerous privileges. Based on such favorable attributes, each industrial estate is expected to be a production base that contributes to the competitiveness of all business operators.
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To improve effectiveness and efficiency as a potential and performance-enhancing tool for investors and operators in industrial estates, the Industrial Estate Authority of Thailand Act B.E. 2522 [1979] was amended and re-enacted as the Industrial Estate Authority of Thailand Act (No.4) B.E. 2550 [2007] to meet the needs of today’s dynamic marketplace and obligations under World Trade Organization (WTO) agreements.
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| Fundamentals of the Industrial Estate Authority of Thailand Act (No.4) B.E. 2550 [2007] |
1.Industrial estates are divided into two zones: General Industrial Zone and I-EA-T Free Zone – in lieu of an Export Processing Zone, whereby no export conditions are imposed in accordance with WTO obligations.
2.The operation of service businesses are allowed in a General Industrial Zone, where service operators are granted the right to land ownership.
3.Operators in an I-EA-T Free Zone are entitled to additional tax privileges.
4.The administrative process was streamlined to facilitate business operations in an I-EA-T Free Zone.
5.The process of industrial estate establishment and land allocation was improved to ensure faster and more convenient implementation.
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| Enhanced Potential and Opportunity |
| An investors’ potential in operating a business in an industrial estate – be it in a General Industrial Zone or an I-EA-T Free Zone – are augmented by a wider spectrum of privileges and facilities that make each estate an ideal strategic production and service base designed to heighten competitiveness for both business operators and industrial estate developers. |
| Investment in General Industrial Zone |
Investors in a General Industrial Zone are eligible for following opportunities, options and privileges:
1.Permission to operate service businesses in the General Industrial Zone
I-EA-T provides industrial operators in a General Industrial Zone with comprehensive services essential for industrial operation – such as transportation, warehouses, training centers and clinics – as well as permission to own land required for their operations.
2. Non-Tax privileges for operators in a General Industrial Zone
• The right to own land in an industrial estate • The right to bring in foreign skilled workers as well as their spouses or dependents • The right to remit money abroad
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| Investment in I-EA-T Free Zone |
Under the most recent Industrial Estate Authority of Thailand Act, investors in an I-EA-T Free Zone are entitled to additional tax privileges and other preferences:
1. Privileges
• Operators in an I-EA-T Free Zone are afforded the privilege of exporting products without any restrictions and with the added convenience of being able to bring merchandise or raw materials into an I-EA-T Free Zone.
• Supplies taken into an I-EA-T Free Zone are entitled to improved tax and duty privileges.
• Tax burden relief for products taken out of an I-EA-T Free Zone for domestic use or consumption. Contrary to the previous Act, content or raw material components, if produced domestically, are entitled to tax and duty exemptions.
• Operators in a I-EA-T Free Zone remain entitled to privileges indicated in the previous Industrial Estate Authority of Thailand Act:
Tax privileges including import/export tax and duty exemptions; value-added tax (VAT) as well as excise tax on machinery, equipment, components, raw materials and supplies used for the production of goods and other merchandise
General privileges consisting of the right to own land, bring in technicians, experts, their family members and dependents, as well as the ability to remit foreign currency to their home countries
2. Operational preferences
• Permission to import into Thailand or bring into an I-EA-T Free Zone, merchandise and raw materials for production, trade or service offering, without any restriction that importation of such material is limited to business operators.
• Permission, for export goods producers, to bring supplies or raw materials into an I-EA-T Free Zone for manufacturing, mixing, assembling, packing or any other operations, without requiring any import permits or particular seals or symbols and with exemptions from standard and quality control requirements contained in any other laws - except those found in the customs law.
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| Increased Competitiveness of Industrial Estate Developers |
The amended Industrial Estate Authority of Thailand Act was rewritten to increase industrial estate developer competitiveness, through the following:
• The establishment of an I-EA-T Free Zone is now expedited through the issuance of I-EA-T Announcements – instead of Royal Decrees.
• The land allocation process is now facilitated by allowing the I-EA-T Governor to grant approval according to I-EA-T-specified criteria, methods and conditions.
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| Thailand’s Competitive Potential on the Global Arena |
The amended Act provides advantages to Thai operators on the global trade stage, through the following:
o Thailand is to earn acceptance and recognition from member nations who also comply with WTO obligations resulting in a positive impact on trade and investment.
o Operators will not encounter any retaliation on issues concerning government-subsidized export products by the WTO member nations, to which operators export their products.
o Trade expansion can take place in accordance with free trade guidelines, propelling Thailand’s economy to greater heights.
o Operator and entrepreneur confidence is improved.
o Special privileges such as tax breaks are granted by the 150 WTO member nations.
o Operators are able to conduct business more effectively as they can select appropriate trade markets – whether to sell products domestically or internationally – based on competitive conditions and thereby enhancing their capabilities for global market expansion.
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