Application Procedures for Free Zone Users

 Application Procedures for Free Zone Users

     A state enterprise or public limited company that is granted permission to run a business in a Free Zone has to submit a completed application form together with supporting documents to the Director of Customs in the Tax Incentives Department. However, if applicants with a grant to operate a Free Zone in a Special Economic Zone or in a prototype project – triangle cities with security, wealth, and sustainability – they should submit their completed application form to the Customs Station in their area.   

Eligible and ineligible Free Zone Users

(1) Eligible applicants

• A legal person or public company limited with at least 5 million THB of paid-up capital. If the applicants run businesses in a Special Economic Zone or in a prototype project (triangle cities with security, wealth, and sustainability), the paid-up capital should be not less than 1 million THB;
• A business that has been granted approval from a Free Zone licensee to operate Free Zone activities;
• Applicants must be a site owner or have the right to manage the areas proposed for approval to be a Free Zone;
• A legal person with secure financial status certified by a licensed auditor. The accumulated deficit must not be over 50% of paid-up capital.  In the case of a legal person that has recently been registered, they must submit a Feasibility Study for consideration;
• Operations in a Free Zone shall be in compliance with the stated Free Zone objectives.

(2) Ineligible applicants

• License has been withdrawn;
• The license was withdrawn, but the withdrawal period is more than three years prior to the current application date.

Responsibilities of applicants

• Provide effective warehouse management that is suitable for an import-export business. Able to prepare standard reports;
• Provide up-to-date tools, equipment, or programs to facilitate the work of Customs officers, such as data storage system for import-export, domestic trading, tax exemption and tax deduction, residual material management, effective CCTV, etc.;
• In cases of applying for commercial business, applicants must submit to the Customs Department a letter of consent and report of goods transferring in and out of the Free Zone.

     If all documents are verified, a Customs officer will proceed with further steps within 15 days. After the Director of Customs grants approval, applicants will be informed.

     After being granted approval from Customs, applicants must make an agreement of bond and security as a guarantee for any damages, together with license and annual fee within 15 days after receiving notification. If applicants neglect or incompletely follow the regulations, it will be assumed that the applicants do not wish to get the license, and the application will be rejected from the system. When an agreement of bond and security is conducted, and the license and annual fee are paid, the Director of Customs will sign his name on the agreement and grant approval. 

Data updated on July 23, 2018
Source: Free Zone Establishment Department, Customs Department
Tel. : +66 2667 6536