Thailand’s Board of Investment (BOI) has extended its previously announced period for reduction of import duty on imported raw and essential materials for battery manufacturing for electric vehicles and other applications. The BOI’s announcement No. 5/2565 dated August 8, 2022, extended the reduction period to a maximum of five years.
The BOI’s promoted activities list includes two battery-manufacturing business activities:
- Activity 4.8.3.1 – Battery manufacturing
- Activity 5.2.6.1 – High energy density battery manufacturing
Qualifying battery manufacturers who have cell or module manufacturing processes are eligible for 90% import duty reductions on raw and essential materials that cannot be produced in Thailand. These reductions will be available on an annual basis, and are renewable for five years in total—up from the original two years.
Existing projects (i.e., those which have the original two-year duration in their BOI certificate) can also benefit from the extension by preparing a project amendment form, along with a clarification letter and supporting documents, for submission to the BOI office.
For further information, please contact:
Charuwan Charoonchitsathian, Partner, Tilleke & Gibbins
charuwan.c@tilleke.com
