What the BOI Scrap Certificate / Scrap Inspection Is
When a company in Thailand obtains promotion from the Board of Investment (BOI), it receives tax and duty incentives (e.g., corporate tax exemption, import duty exemption) for eligible activities. Under BOI rules, these incentives apply only when imported raw materials or parts are actually used in production — not resold or misused.
Scrap or waste materials generated during production (such as defective boards, solder waste, damaged components) must be properly inspected and verified before they can be:
✔ disposed of
✔ exported
✔ sold domestically
This ensures companies don’t misuse raw materials just to benefit from tax exemptions and then sell leftovers without duty.
A BOI Scrap Certificate (also called Scrap Loss Verification) is the official paperwork confirming that:
- the scrap was legitimately generated from BOI-promoted production, and
- the amounts/types are correctly documented according to BOI and Customs requirements.
Without this certificate or inspection, the company cannot claim incentives for those materials and may face compliance issues.
📌 Why BOI Investors Need This Service
1. Maintain Tax & Duty Benefits
The BOI incentives (e.g., import duty avoidance and corporate tax holidays) are conditional. If a promoted company does not correctly account for materials — including scrap — it risks losing incentives or facing retroactive duties. Proper scrap verification ensures compliance with BOI and Customs rules.
2. Comply With BOI and Customs Regulations
BOI mandates that scrap materials must be inspected and certified before they are allowed to leave the factory, be exported, or be sold. Customs also requires this documentation to support duty exemptions.
3. Prevent Tax Evasion Concerns
Without an official scrap inspection report, authorities could treat the sale or disposal of imported materials as taxable. This can lead to audits, penalties, and legal issues (as seen in enforcement cases where companies couldn’t justify scrap deductions).
4. Support Accurate Reporting & Audits
The BOI and Thai Revenue Department conduct compliance audits. Having certified documentation for scrap ensures smooth accounting, full advantage of BOI incentives, and clean audit trails.
5. Facilitate Environmental & Inventory Controls
Certified scrap reports help manage inventory accurately, support environmental compliance (proper disposal or recycling), and improve transparency in production.
🛠 Why Investors Use Advantage Co., Ltd for This
Advantage Co., Ltd is an officially appointed third-party inspector for BOI scrap verification. They provide:
🔹 Professional inspection and documentation services
🔹 Verification of actual scrap amounts against BOI and Customs standards
🔹 Assistance preparing and submitting reports for tax and duty benefits
They help BOI-promoted companies navigate this complex regulatory requirement efficiently and ensure the documentation meets government standards.
💡 Without an experienced inspector like Advantage, companies may struggle with the technicalities of measurement, reporting, and compliance.