Import duty privileges under the Act
| Privilege | Section |
|---|---|
| Exemption or reduction of import duty on machinery | 28 and 29 |
| Reduction of import duty on raw or essential materials | 30 |
| Exemption of import duty on materials imported for R&D | 30/1 |
| Exemption of import duty on raw or essential materials imported for production for export | 36 |
Machinery
Exemption or reduction of import duty on machinery is a basic privilege found in many promoted activities. Projects must use new machinery unless imported used machinery meets the guide's criteria, for example used machinery not exceeding 5 years, or over 5 but not over 10 years, which carries extra conditions and requires a machinery performance certificate submitted with the master list of machinery.
Some activities have exceptions. For example, certain activities limit the machinery duty exemption to machinery used for R&D and training. Check the conditions for your activity.
Raw and essential materials
- Production for export: possible exemption of import duty on raw and essential materials used in production for export (Section 36)
- Research and development: possible exemption of import duty on materials imported for R&D (Section 30/1)
- Duty reduction: some activities receive reduced duty on materials not produced locally. One example in the guide is battery manufacturing, which gets a 90% reduction for five years, approved one year at a time from the first import.
Raw material privileges are activity-specific. Not every activity receives them, and some, such as international business centres, are expressly not eligible for the export raw material exemption. Check your activity's conditions first.
After the certificate: using the privileges
- 01Get the lists approved
Obtain approval of the machinery list and the raw material master list as the certificate requires.
- 02Get the production formula approved
If you use the raw material privilege, the production formula and material usage must be approved.
- 03Record usage and update balances
Update the balance of imported materials through the RMTS Online system.
Things to know
- Actual benefits depend on the activity, its conditions and the resolution in each promotion certificate
- Seek approval of the lists before importing, and keep import and usage records ready for inspection
- This page is an overview. Check the latest BOI announcements before you invest
Continue with tax incentives and the BOI application process.
Frequently asked questions
Does the BOI exempt import duty on machinery?
There is an exemption or reduction of import duty on machinery for many promoted activities (Sections 28 and 29), but the machinery list must be approved and the activity's conditions met.
Is import duty on raw materials for export production exempt?
Import duty on raw and essential materials used in production for export may be exempt (Section 36), subject to the activity's conditions and the promotion certificate.
Does every activity get the same raw material privileges?
No. They are activity-specific, and some activities do not receive certain privileges. Check the conditions for your activity.
Source: Investment Promotion Guide 2025, Thailand Board of Investment. This is an overview for general information, not legal or tax advice. Actual rights depend on the activity type, conditions and the latest BOI announcements.