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 […]
BOI Scrap Inspection
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 […]
Type of Scrap Usually Found for Circuit Breakers in the Electronics Industry
Circuit breaker scrap is highly valuable due to its content of precious and base metals. The scrap can be categorized as follows: 1. Precious Metal-Bearing Components: 2. Base Metal Components: 3. Non-Metallic Components: 4. Mixed/Composite Waste:
What Are “Loss” and “Scrap” Under Section 36 of the BOI Regulation?
For companies granted BOI privileges, understanding the terms “Loss” and “Scrap” is critically important — as they directly affect raw material write-offs, documentation accuracy, and compliance with BOI requirements. 🧩 Definition of “Loss” Loss refers to raw materials that cannot be used for their original intended purpose, such as: 🔥 Definition of “Scrap” Scrap refers […]