Scrap Recorded Without Linking to Production Orders — A Common BOI Compliance Gap
One of the most frequent weaknesses found in BOI-promoted factories is recording scrap quantities without linking them to specific production orders or batches. At first glance, recording total scrap each month may seem sufficient.However, under the compliance expectations of the Thailand Board of Investment, scrap must be traceable to the exact production activity that generated […]
What is Material Balance in BOI-Promoted Factories?
Material balance means a factory can clearly account for every unit of raw material imported under BOI privilege. It shows transparency in how materials move through production and ensures the company uses tax-exempt imports correctly under the rules of the Thailand Board of Investment. A proper material balance system should clearly demonstrate: 1. Imported QuantityThe […]
Most Common BOI Scrap Compliance Gaps in Factories
1. ❗ Not performing third-party scrap verification Many factories record scrap internally but forget that BOI usually requires independent inspection and certification of losses or destruction. Without this, unused materials may be treated as taxable stock and BOI benefits can be revoked. 2. ❗ Poor traceability between imported material and scrap Factories often fail to […]
Performance Testing for Coffee Machines
Performance testing ensures that every coffee machine consistently delivers optimal brewing quality, efficiency, and reliability under normal operating conditions. The following tests verify that the product meets both customer expectations and regulatory requirements in Thailand. 1️⃣ Brewing Temperature Consistency Test (85–96°C) Proper extraction of coffee requires water temperature between 85°C and 96°C. Purpose:To confirm the […]
How Scrap or Waste Generated During Production Must Be Handled
(According to BOI Thailand – Section 36(1)) Under BOI Thailand regulations, scrap, waste, or production loss generated from raw materials imported under Section 36(1) (duty exemption) cannot be handled freely. The handling method depends strictly on the type of loss and its commercial value 1. First Step: Classify the Scrap Correctly All production scrap must […]
Classification of Raw Material Loss
Raw material loss is divided into two types: 1. Loss Included in the Production Formula (Formula Loss) 2. Loss Not Included in the Production Formula (Non-Formula Loss) Tax Calculation for Commercially Valuable Loss In the case where Company A purchases raw materials from BOI-promoted Company B and adjusts raw material accounts monthly via Report-V, if […]
BOI Related Important Information
Can an individual apply for investment promotion?Yes. An individual is eligible to submit an application for investment promotion and may also accept the approval resolution as an individual. However, at the stage of issuance of the Promotion Certificate, the applicant must be registered as a legal entity in Thailand, such as a company, cooperative, or […]
ASML – BOI Thailand Meeting
ASML, the world’s leading semiconductor manufacturing equipment company from the Netherlands, met with Thailand’s Board of Investment (BOI) to discuss cooperation in developing Thailand’s semiconductor supply chain. The collaboration aims to support Thailand’s national strategy and the vision of “Chip Made in Thailand”, including long-term ecosystem development. ASML expressed strong interest in expanding its supplier […]
Loss Quantity Inspection Service
One of the comprehensive quality services provided by Advantage Co., Ltd., ready to assist with inspecting imported raw materials from abroad used in various industries, as well as losses occurring during the production process or with substandard machinery that must be destroyed. This service helps facilitate clients across different industries in claiming import duty privileges […]
What Scrap / Loss Means Under BOI Rules (PCBA Products)
Under Thailand BOI regulations—particularly those enforced under Section 36 of the Investment Promotion Act—scrap and loss refer to raw materials, components, or in-process goods that cannot be used or sold as intended during PCBA manufacturing. These are unavoidable by-products of the electronics assembly process, but they are not part of the approved formula loss 🔧 […]