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Many companies assume that once their BOI application is approved and the certificate is issued, they can go straight ahead with duty-free imports.

In practice, however, we often see situations like this:

• The company has completed its Thai company registration and obtained its BOI certificate.

• The equipment has been imported and has even gone into production.

• Yet the company is still required to pay back import duty and VAT.

The core of the problem is this: BOI importing is not a question of eligibility, but a question of process.

1. The Nature of BOI Imports: A System of Prior Approval and Closed-Loop Management

Many companies mistakenly see BOI as nothing more than a tax exemption policy. In reality, BOI importing is a strict approval system, not simple customs clearance.

The complete sequence is: file first, then apply, then import, then register.

Every step must be completed in the system. If any step is skipped, the import no longer counts as a BOI-compliant import.

2. The Five Core Steps of BOI Importing (Must Be Followed in Order)

Step 1: Machinery / Raw Material Filing

This is the most critical first step:

• Machinery filing determines whether equipment can be imported duty-free.

• Raw material filing determines whether production can benefit from the duty exemption.

Without filing, none of the subsequent imports can enjoy BOI privileges.

Step 2: Submit the BOI Import Application

The company must submit an application in the system before importing. What is being applied for is whether this particular shipment may enter duty-free.

Please note:

• Applications cannot be submitted retroactively.

• You cannot import first and complete the process afterwards.

Step 3: Obtain the Release Approval

Once BOI approves the application, an approval letter is issued. This is the key document Customs relies on when deciding whether to release the goods duty-free.

Step 4: Customs Clearance

At the clearance stage, the customs declaration must match the BOI approval letter exactly, including:

• Description of goods

• Quantity

• HS code

Step 5: Register the Goods in the System

After the import is completed, it must be registered in the BOI system. Otherwise:

• Subsequent BOI raw material reconciliation (write-off) cannot be carried out.

• The data chain is broken.

3. The Three Most Common Mistakes

1. Using the regular import process instead of the BOI process. Result: the duty exemption cannot be claimed.

2. Filing that does not match actual purchases. Result: duties are reclaimed on part or all of the goods.

3. Neglecting system registration. Result: later raw material reconciliation fails.

4. The Practical Impact on Companies

Non-compliant BOI import handling leads directly to:

• Loss of the duty exemption

• Payment of back import duty and VAT

• Problems with BOI raw material reconciliation

• In serious cases, an impact on the company's BOI status

5. Z&X Recommendations

When handling BOI imports, companies must:

• Complete filing before business operations begin.

• Establish internal process coordination between purchasing, finance and customs brokerage.

• Review import compliance regularly.