{"id":2335,"date":"2025-11-05T09:20:32","date_gmt":"2025-11-05T09:20:32","guid":{"rendered":"https:\/\/www.advantage.co.th\/?p=2335"},"modified":"2025-11-17T01:38:53","modified_gmt":"2025-11-17T01:38:53","slug":"what-are-loss-and-scrap-under-section-36-of-the-boi-regulation","status":"publish","type":"post","link":"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/","title":{"rendered":"What Are \u201cLoss\u201d and \u201cScrap\u201d Under Section 36 of the BOI Regulation?"},"content":{"rendered":"\n

For companies granted BOI privileges<\/strong>, understanding the terms \u201cLoss\u201d<\/strong> and \u201cScrap\u201d<\/strong> is critically important \u2014 as they directly affect raw material write-offs<\/strong>, documentation accuracy, and compliance with BOI requirements.<\/p>\n\n\n\n

\ud83e\udde9 Definition of \u201cLoss\u201d<\/strong><\/h3>\n\n\n\n

Loss<\/strong> refers to raw materials that cannot be used for their original intended purpose<\/strong>, such as:<\/p>\n\n\n\n

    \n
  • Materials that are defective, substandard, or left over from production<\/li>\n\n\n\n
  • Raw material residues generated during the production process<\/li>\n\n\n\n
  • Damaged or non-sellable finished goods<\/li>\n<\/ul>\n\n\n\n

    \ud83d\udd25 Definition of \u201cScrap\u201d<\/strong><\/h3>\n\n\n\n

    Scrap<\/strong> refers to \u201cLoss\u201d that has already been destroyed<\/strong> and no longer retains its original form<\/strong>.<\/p>\n\n\n\n

    \u2699\ufe0f Types of Loss<\/strong><\/h3>\n\n\n\n

    Losses are categorized into two main types:<\/p>\n\n\n\n

    1. In-Formula Loss (Loss Included in Production Formula)<\/strong><\/h4>\n\n\n\n

    These are losses that can be predetermined and calculated<\/strong> in advance \u2014 and are approved to be included<\/strong> in the production formula.
    Examples:<\/strong><\/p>\n\n\n\n

      \n
    • Metal offcuts from stamping processes<\/li>\n\n\n\n
    • Powder dust from grinding processes<\/li>\n<\/ul>\n\n\n\n

      \u2705 These are automatically deducted from the raw material account.
      \ud83d\udd01 Must be measured in weight, volume, or area<\/strong> only.
      \u274c If the residue can be reused or recycled (e.g., plastic scrap), it cannot<\/strong> be classified as in-formula loss.
      \ud83d\udcb0 If it has commercial value<\/strong>, applicable duties or taxes must be paid<\/strong> before selling.<\/p>\n\n\n\n

      2. Out-of-Formula Loss (Loss Outside Production Formula)<\/strong><\/h4>\n\n\n\n

      These are losses that cannot be predetermined<\/strong> and may occur unexpectedly.
      Examples:<\/strong><\/p>\n\n\n\n

        \n
      • Raw materials damaged before production<\/li>\n\n\n\n
      • Waste or rejects found during quality control<\/li>\n\n\n\n
      • Non-conforming products after production<\/li>\n<\/ul>\n\n\n\n

        \ud83d\udccc These must undergo inspection and verification<\/strong> of type and quantity before write-off.
        \u2757 Write-off is allowed only after verification is complete.<\/strong><\/p>\n\n\n\n

        \ud83d\udcde For more information<\/strong>, please contact us today!<\/p>\n","protected":false},"excerpt":{"rendered":"

        For companies granted BOI privileges, understanding the terms \u201cLoss\u201d and \u201cScrap\u201d is critically important \u2014 as they directly affect raw material write-offs, documentation accuracy, and compliance with BOI requirements. \ud83e\udde9 Definition of \u201cLoss\u201d Loss refers to raw materials that cannot be used for their original intended purpose, such as: \ud83d\udd25 Definition of \u201cScrap\u201d Scrap refers […]<\/p>\n","protected":false},"author":3,"featured_media":2336,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[54,75,73,48],"class_list":["post-2335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-boi-scrap","tag-boi-inspection","tag-boi-requirements","tag-loss-included-in-production-formula","tag-scrap-2"],"acf":[],"yoast_head":"\nWhat Are \u201cLoss\u201d and \u201cScrap\u201d Under Section 36 of the BOI Regulation? - Advantage<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What Are \u201cLoss\u201d and \u201cScrap\u201d Under Section 36 of the BOI Regulation? - Advantage\" \/>\n<meta property=\"og:description\" content=\"For companies granted BOI privileges, understanding the terms \u201cLoss\u201d and \u201cScrap\u201d is critically important \u2014 as they directly affect raw material write-offs, documentation accuracy, and compliance with BOI requirements. \ud83e\udde9 Definition of \u201cLoss\u201d Loss refers to raw materials that cannot be used for their original intended purpose, such as: \ud83d\udd25 Definition of \u201cScrap\u201d Scrap refers […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/\" \/>\n<meta property=\"og:site_name\" content=\"Advantage\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/ACLinspection\" \/>\n<meta property=\"article:published_time\" content=\"2025-11-05T09:20:32+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-17T01:38:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.advantage.co.th\/wp-content\/uploads\/2025\/11\/18820.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1477\" \/>\n\t<meta property=\"og:image:height\" content=\"1108\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"admin@advantage\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin@advantage\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/\"},\"author\":{\"name\":\"admin@advantage\",\"@id\":\"https:\/\/www.advantage.co.th\/en\/#\/schema\/person\/5d079d592c12254a245bcb70f33fe3b8\"},\"headline\":\"What Are \u201cLoss\u201d and \u201cScrap\u201d Under Section 36 of the BOI Regulation?\",\"datePublished\":\"2025-11-05T09:20:32+00:00\",\"dateModified\":\"2025-11-17T01:38:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/\"},\"wordCount\":261,\"publisher\":{\"@id\":\"https:\/\/www.advantage.co.th\/en\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.advantage.co.th\/wp-content\/uploads\/2025\/11\/18820.jpg\",\"keywords\":[\"BOI Inspection\",\"BOI requirements\",\"Loss Included in Production Formula\",\"Scrap\"],\"articleSection\":[\"BOI Scrap\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/\",\"url\":\"https:\/\/www.advantage.co.th\/en\/what-are-loss-and-scrap-under-section-36-of-the-boi-regulation\/\",\"name\":\"What Are \u201cLoss\u201d and \u201cScrap\u201d Under Section 36 of the BOI Regulation? 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