BOI Scrap Inspection refers to the inspection process required by Thailand’s Board of Investment (BOI) for companies that receive investment promotion incentives. This applies particularly to manufacturing or promoted activities where imported raw materials (duty-free or tax-exempt under BOI privileges) generate waste, scrap, defective goods, or production losses.
What is BOI Scrap Inspection?
It is a third-party verification (by accredited inspection companies) of scrap, waste, or non-formula losses from production. The goal is to:
- Confirm the quantity and nature of the scrap/losses.
- Witness destruction or disposal (if required) to prevent misuse or resale without proper taxes.
- Issue a certificate that allows the company to deduct/write off these amounts from their raw material inventory/stock records with the BOI.
- Avoid paying import duties/taxes on the unused or wasted portion of imported materials when the promotion period ends or for ongoing compliance.
Without this inspection and certification, the remaining stock could be treated as taxable, leading to penalties or loss of BOI benefits.
When is it Required?
- During production: For scrap/waste from manufacturing processes (e.g., defective parts, expired raw materials, off-spec products).
- At the end of the promotion period: To settle any remaining imported raw material stock.
- For BOI-promoted companies importing materials duty-free (common in electronics, metals recycling, manufacturing, etc.).
- Especially relevant for industries like precious metal recycling from electronic waste (e.g., PCB scrap, circuit breakers), where scrap handling is strictly regulated.