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Industrial
Estates
Thailand
has created a network of Industrial Estates, which operate similarly
to free trade zones, in order to promote exports, foreign investment
and economic decentralization from Bangkok. The Industrial Estate
Authority of Thailand (IEAT), which is attached to the Ministry
of Industry has an objective to ensure orderly planned industrialization,
administrates the numerous estates in the kingdom.
There
are two categories of estates. The first is General Industrial Zone
(GIZ), which is the area reserved for the location of industries
manufacturing for domestic or export consumption. The other is Export
Processing Zone (EPZ), which is the area reserved for the location
of industries manufacturing for export only.
Firms
located in an EPZ or GIZ receive benefits that include:
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Corporate
tax exemptions |
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Reduction
or exemption of import duties on machinery or materials used
in factory manufacturing. |
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Permission
to own land |
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Permission
to use foreign consultants, skilled technicians and experts |
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EPZ's
will usually contain a customs clearing house for fast clearance
of goods |
The
extent of the benefits granted to a company operating in an EPZ
or GIZ depends upon the area of the country it is located in. Thailand's
Board of Investment (BOI) has created three Investment Promotion
Zones in the country with projects in each zone receiving additional
incentives, tax and duty reductions as well as allowances for infrastructure
investments. Zone 1 is Bangkok and the five surrounding provinces;
Zone 2 is central Thailand consisting of 10 provinces including
Ayuttaya, Ratchaburi and Samut Songkhram; Zone 3 contains the remaining
61 provinces. As the goal is economic decentralization, projects
located in Zone 3 receive the most incentives while one located
in Zone 2 receive more than those based in Zone 1.
Zone
1: includes Bangkok, Samut Prakan, Samut Sakhon, Nakhon Pathom,
Nonthaburi and Pathum Thani (Bangkok and 5 provinces)
Zone
2: includes Samut Songkhram, Ratchaburi, Kanchanaburi, Suphanburi,
Angthong, Ayutthaya, Saraburi, Nakhon Nayok, Chachoengsao, and Chonburi
(10 provinces)
Zone
3: encompasses the remaining 61 provinces plus Laem Chabang
Industrial Estate
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