Key Takeaways
- Bonded Warehouse Thailand: Duty suspension for raw materials and goods stored up to a maximum of 2 years from import.
- Thailand Free Zone (e.g., Bangkok, Laem Chabang, Mae Sot Free Zone): No storage time limit; exempts import duties on machinery and materials used within the zone.
- Free Zone Rules of Origin: Goods manufactured inside a Thai Free Zone meeting at least 40% Thai/ASEAN local content (RVC) may qualify for preferential tariff privileges when sold into the domestic market.
- Bonded Fuel Exemption: Fuel stored in bonded oil depots for international aircraft or ocean-going vessels is exempt from customs duty and excise tax because it is consumed outside domestic customs territory.
1. What is a Bonded Warehouse & Bonded Fuel?
Under Sections 119–132 of the Customs Act B.E. 2560, a Bonded Warehouse stores imported goods under customs control without immediate duty payment. Duties are exempted if the goods are re-exported. Similarly, bonded fuel is aviation jet fuel or marine bunker oil kept in a licensed bonded tank and supplied exclusively to international flights or foreign-going vessels—making it tax-free under international customs conventions.
2. Comparing Bonded Warehouse vs. Free Zone vs. BOI e-Submission
- Bonded Warehouse: 2-year maximum storage limit; requires strict stock balance reporting and production formula registration.
- Free Zone: Unlimited storage period; exempts import duty on capital machinery as well as raw materials; ideal for regional distribution hubs (Bangkok Free Zone, Suvarnabhumi Free Zone, Mae Sot Free Zone).
- BOI e-Submission: Grants duty exemption on machinery (e-MT) and export raw materials (RMTS) for BOI-promoted factories located anywhere in Thailand.
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Contact Our Experts Now3. Rules of Origin for Free Zone Goods Entering Thailand
When goods manufactured inside a Thai Free Zone are cleared for domestic consumption, import duty is normally assessed on the finished product. However, under Thai Customs Free Zone Rules of Origin notifications, if the product achieves at least 40% local/ASEAN Regional Value Content (RVC) or satisfies tariff shift criteria, the manufacturer can apply for reduced or zero preferential duty rates.
Official Sources: Tax Incentives Bureau, Thai Customs Department (customs.go.th) and Thailand Board of Investment (boi.go.th).
Need Free Zone, Bonded Warehouse, or BOI Customs Clearance?
Logistics No Limit (LNL) assists importers and manufacturers with BOI e-Submission releases, Free Zone / Bonded Warehouse customs declarations, and domestic/international freight.
View BOI & Customs ServicesA Bonded Warehouse (Sections 119–132 of the Thai Customs Act B.E. 2560) allows importers to store, repack, or manufacture goods under duty suspension for up to 2 years. A Free Zone (Sections 133–166) is a designated customs-free area granting import duty, excise tax, and VAT exemptions on both machinery and raw materials with no storage time limit until goods enter the domestic Thai market.
Frequently Asked Questions
Q:What is the maximum storage period in a Thai Bonded Warehouse?
A:Under the Thai Customs Act B.E. 2560, goods may be stored in a licensed Bonded Warehouse for up to 2 years from the date of importation.
Q:What is bonded fuel and why is it tax-free?
A:Bonded fuel is aviation turbine fuel or marine bunker oil stored under customs control in a licensed bonded depot and supplied exclusively to aircraft or vessels departing on international voyages, qualifying it for exemption from import duty and excise tax.
Q:How do Free Zone Rules of Origin work when selling into Thailand?
A:Products manufactured inside a Thai Free Zone that achieve at least 40% Thai/ASEAN Regional Value Content (RVC) under Thai Customs criteria can apply for preferential tariff exemption when cleared into the domestic Thai market.
