Industrial Estate(EPZ)

There are 2 categories of industrial estate:

• General Industrial Zone: General Industrial Zone means an area designated for industrial activities or other activities beneficial to or connected with industrial activities.
• Export Processing Zone: Export Processing Zone means an area designated for industrial activities, trading or services or other activities beneficial to or connected with industrial activities, trading or services for the purpose of exporting products.

Advantages of Industrial Estate

All of the advantages an Industrial Estate Program can offer Industrial operators in export processing zone (EPZ) under the Industrial Estate Authority of Thailand are numerous. A few main benefits that account for most of the companies that apply for the Industrial Estate Program are listed below:

• Relief from Special Surcharges and Import/Internal Taxes/Duties: Machinery, equipment, tools and supplies including parts of them removed into the EPZ for the purpose of producing goods and constructing, assembling, or installing a factory or a building in the EPZ are not subject to special surcharges under the Investment Promotion Act, import duty, excise tax, and value added tax.
  Similarly, materials removed into the EPZ for the purpose of manufacturing goods are also not subject to special surcharges under the Investment Promotion Act, import duty, excise tax, and value added tax.
• Relief from Export Duty, Excise Taxes, and Value Added Tax: Goods imported under Section 49 of the Industrial Estate Authority of Thailand Act B.E. 2522, including products and by-products arising from the manufacture in the EPZ are not subject to export duty, excise tax, and value added tax, provided they are exported out of the country.
• Entitled for Export Tax Refund/Exemption Schemes: Merchandise entitled to export tax refund/exemption schemes when exported is still qualified for such schemes after it is removed into the EPZ.
• Zero Tax Rate: A zero tax rate is applied to calculate VAT in the following circumstances:
  1. Sale of services or goods among industrial operators whether in the same or different EPZs;
  2. Sale of services or goods between industrial operators and bonded warehouse licensees; and
  3. Domestic merchandise removed into the EPZ.

Location of the EPZs

Currently, there are altogether 9 EPZs in Thailand as listed below:

• Lard Krabang Industrial Estate (Bangkok);
• Bangpoo Industrial Estate (Samut Prakarn);
• Northern Region Industrial Estate (Lamphun);
• Leam Chabang Industrial Estate (Chonburi);
• Bo-Win Industrial Estate (Chonburi);
• Lard Krabang Industrial Estate (Bangkok);
• Baan Wa High-Tech Industrial Estate (Ayudthaya);
• Bangpa-In Industrial Estate (Ayudthaya);
• Plang Yaow Industrial Estate (Gate Way City, Chachoengsao); and
• Southern Region Industrial Estate (Chalung, Songkla).

Contact

For additional information in relation to the drawback under Section 19 bis, interested person may contact the Drawback and Compensation Division, the Customs Privilege Bureau and all ports of entry during office hours. For those require further information on bonded warehouses may contact the Bonded Warehouse Division, the Customs Privilege Bureau and all ports of entry during office hours.