BOI 104: Saving on Machinery Import Duties

For industrial investors, the "Entry Cost" into Thailand is often the machinery. Importing specialized equipment from Europe, China, or Japan can trigger significant import duties and VAT.

 

The Duty Exemption

Under BOI Section 28, promoted companies are granted Exemption of Import Duties on Machinery. This applies to:

• New machinery used directly in the promoted activity.
• Essential parts and components.
• Equipment for research and development.

 

The 'Master List' Process

This isn't an automatic discount at the port. Your company must submit a "Master List" of your equipment to the BOI for approval. Once approved, your customs broker uses a digital system (e-MT) to clear the goods at 0% duty.

 

Strategic Value

If you are importing 100 million THB worth of automated assembly lines, a 15% duty exemption saves you 15 million THB in cash flow immediately. This liquidity can then be used for training, local marketing, or operational expenses, giving your Thai startup a massive head start.

 

Where Applications Go Wrong

• Importing before approval: Equipment shipped before the Master List is approved generally arrives without the exemption. Sequence purchase orders around the approval, not the other way around.
• Vague equipment descriptions: Customs compares each shipment against the approved list. A description that does not match the actual machine invites delay, reassessment, or duty demands at the port.
• Assuming everything qualifies: The exemption targets machinery used directly in the promoted activity. Office furniture and general-purpose equipment usually sit outside it, so budget for those items separately.

 

Keep the Paper Trail Alive

The benefit generally covers approved imports made within the promotion period, and promoted companies are expected to keep records linking each shipment to the approved list and the promoted activity. Disciplined documentation preserves the exemption through customs reviews for years after the machines are installed.

 

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Related Service: Logistics & Customs Clearance — Management of e-MT master lists and duty-free customs clearing.