G/SCM/N/343/THA  
 
4 July 2019 
(19-4482) Page: 1/5 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
 
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  
OF THE GATT 1994 AND  ARTICLE 25 OF THE A GREEMENT  
ON SUBSIDIES AND COU NTERVAILING MEASURES  
THAILAND  
The following communication, dated 28 June 2019, is being circulated at the request of the 
Delegation of Thailand.  
 
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1  INVESTMENT PROMOTION  INCENTIVES  
1. Title of the subsidy programme  
 
Investment Promotion Incentives.  
 
2. Period covered by the notificati on 
 
1 January 2017 - 31 December 2018.  
 
3. Policy Objective and/or purpose of the subsidy  
 
The BOI's investment promotion incentives aim at promoting investment to enhance Thailand's 
competitiveness and to achieve sustainable growth in accordance with the sufficiency economy 
philosophy. Also, the incentives have been geared towards promoting technology -based activities in 
order to enhance the country's technological competitiveness and promote investment in targeted 
industries in accordance with the country 's economic policy of Thailand 4.0 . 
 
4. Background and authority for the subsidy  
 
The legal basis of the investment promotion incentives is the Investment Promotion Act (1977) 
amended in 1991, 2001, and 2017. The responsible authority is the Office of the Board of 
Investment.  
 
5. Form of the subsidy  
 
Tax concession such as exemption/reduction of corporate income tax, exemption of import duties 
on machinery, exemption of import duties on raw and essential materials used for export products 
(similar to duty d rawback scheme), and special deduction of certain expenditures.  
 
6. To whom and how the subsidy is provided  
 
The investment incentives programme is generally available to all investment projects that meet the 
criteria as prescribed by the BOI. All foreign and local investors can apply to the investment 
promotion scheme on an equal basis.  
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  A wide range of investment activities covering various sectors are eligible for investment promotion 
incentives and the investors can freely choose where to locate their i nvestments in Thailand. Also, 
the BOI does not take into consideration the export performance of the projects as a criterion to 
grant investment promotion. The BOI scheme is not contingent upon location or export performance.  
 
Apart from the main scheme, t he BOI also offers other measures as follows:  
 
• The Eastern Economic Coridor (EEC)  
• Special Economic Development Zones (SEZS)  
• Investment promotion policy for industrial development in border provinces in Southern 
Thailand (Narathiwat, Yala, Satun, and four districts of Songkhla)  
• 20 provinces with low per capita income (Kalasin, Chaiyaphum, Nakhon Phanom, Nan, Bueng 
Kan, Buri Ram, Phrae, Maha Sarakham, Mukdahan, Mae Hong Son, Yasothon, Roi Et, Si Sa 
Ket, Sakhon Nakhon, Sa Kaew, Sukhothai, Surin, Nong B ua Lamphu, Ubon Ratchatani, and 
Amnatcharoen)  
 
7. Amount of the subsidy  
 
There is no specific budget earmarked for investment promotion incentives. The information on the 
subsidy per unit is therefore cannot be provided. No statistics on corporate income tax and import 
duties exemption/reduction are available.  
 
8. Duration of the subsidy and/or anytime attached to it  
 
The duration of the investment promotion incentives programme is indeterminate. However, the 
incentives granted to each investment project a re subject to certain time limits.  
 
2  COMPENSATION PROGRAM  FOR FISHING VESSEL OWNERS AFFECTED BY T HE 
GOVERNMENT'S FISHING  VESSEL REMOVAL MEAS URE 
1. Title of the subsidy program   
 
Compensation program for fishing owners affected by the government's fishing ve ssel removal 
measure.  
 
2. Period covered by the notification  
 
January – December 2019.  
 
3. Policy objective and/or purpose of the subsidy  
 
The objective is to compensate fishing vessel owners for their loss opportunity to fish resulting from 
the government 's fishing vessel removal measure in 2015. This program will help 
operators/fishermen who affected from the measure to earn a living and alleviate their debt 
problems.  
 
4.  Background and authority for the subsidy  
 
In 2015, the government decided to contr ol the number of fishing vessels operating in Thai's waters 
to maintain fish stocks at the levels that can produce the maximum sustainable yield (MSY) which 
is one of the government's measures to manage fisheries resources and address IUU fishing 
problems.  There were several fishing vessels removed and not allowed to fish permanently through 
this process. In order to compensate for fishing vessel owners for their loss opportunity to fishing, 
the government designated the Department of Fisheries to implement  the above -mentioned 
program.  
 
5.  Form of the subsidy  
 
Grants.  
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  6.  To whom and how the subsidy is provided  
 
Fishing vessel owners or fishing operators who affected from the government's fishing vessel 
removal measure and could not use those vessels to fish permanently since 2015, including 
252 wooden vessels of less than 90 GT.  
 
7.  The amount of the subsidy  
 
The government provides grants for 252 wooden fishing vessels of less than 90 GT which were 
removed from fishing activities permanently with total  amount of 469,603,900 Baht.  
 
8.  Duration of the subsidy is provided  
 
March – September 2019.  
 
3  THE LIVELIHOOD IMPRO VEMENT AND RESILIENC E BUILDING PROGRAM F OR 
ARTISANAL FISHERIES COMMUNITIES  
1.  Title of the subsidy program   
 
The livelihood improvement an d resilience building program for artisanal fisheries communities.  
 
2.  Period covered by the notification  
 
January - December 2019.  
 
3. Policy objective and/or purpose of the subsidy  
 
The objectives are :  
 
1)  to increase artisanal fishers' incomes and improve their livelihoods.  
2) to conserve and restore fisheries resources and promote community - based management for 
artisanal fisheries in coastal areas  
3) to promote better qualities of lives.  
 
4.  Background and authority for the subsidy  
 
This progr am is operated by the Department of Fisheries under the Royal Ordinance on Fisheries 
B.E. 2558 to provide support for local fishing communities to manage, maintain, conserve, restore 
and sustain utilization of fisheries resources within fishing grounds inc luding to improve their 
livelihoods and qualities of lives.  
 
5.  Form of the subsidy  
 
Grants.  
 
6.  To whom and how the subsidy is provided  
 
The Department of Fisheries provides grants for 65 artisanal fishing communities in the 
three  southern coastal prov inces in a wide range of activities to improve livelihoods, promote quality 
of lives, restore and conserve fisheries resources.  
 
7.  The amount of the subsidy  
 
The total budget is 99,800,000 Baht.  
 
8. Duration of the subsidy is provided  
 
April – September  2019.  
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  4  CAPACITY BUILDING ON  MARINE SHRIMP PRODU CTION AND MARKETING FOR 
DOMESTIC SHRIMP CONS UMPTION  
1.  Title of the subsidy program  
 
Capacity building on marine shrimp production and marketing for domestic shrimp consumption.  
 
2. Period covered by the notification  
 
January - December 2019.  
 
3. Policy objective and/or purpose of the subsidy  
 
The objectives of the program are  
 
 1) to resilience building for marine shrimp farmers' institutes and community enterprises 
to become self – reliance and self suff iciency; have more bargaining power and can manage 
the marketing process and product distribution for domestic shrimp market.  
 2) to support small - scale marine shrimp farmers who are a member of farmer's institutes 
and community enterprises back in busin ess by providing access to business opportunity and 
funding and specific pathogen -free shrimp seed.  
 
4. Background and authority for the subsidy  
 
The responsible authorities are the Department of Fisheries (DOF) and the Bank for Agriculture and 
Agricultura l Cooperatives (BAAC).  
 
5.  Form of the subsidy  
 
Grants and soft loans .  
 
6.  To whom and how the subsidy is provided  
 
 1) DOF provides grants for marine shrimp farmers at 90% of the prices to buy specific 
pathogen -free and quality shrimp seed. However, th e grant should not be more than 
40,000  Baht per each farmer.  
 2) BAAC provides soft loans for marine shrimp farmers to buy farming inputs. The loan 
amount for each farmer should not be more than 300,000 Baht in 1st year (2019). DOF will 
compensate farmers at 3% interest rate per year.  
 3) BAAC provides soft loans for marine shrimp farmer's institutes and 
community  enterprises to increase managing and marketing abilities and product distribution. 
The loan amount for each farmer's institute/community enterpr ise should not be more than 
2,000,000 Baht per each institute in 1st year (2019). DOF will compensate the farmers at 3% 
interest rate per year.  
 
7.  The amount of the subsidy  
 
Year 2019: 278 million Baht.  
 
8.  Duration of the subsidy is provided  
 
Year 2019  (The whole period of the program ranges from 2019 - 2021).  
 
5  MICROORGANISMS PRODU CTION CENTERS FOR GR OUPS OF MARINE SHRIM P FARMER 
GROUPS  
1.  Title of the subsidy program   
 
Microorganisms production centers for groups of marine shrimp farmer Groups.  
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  2.  Period covered by the notification  
 
January - December 2018.  
 
3. Policy objective and/or purpose of the subsidy  
 
The objective of the program was to establish microorganisms production centers in order to provide 
microorganisms (liquid and powder) for shrimp  farmers sufficiently.  
 
4.  Background and the authority for the subsidy  
 
The Department of Fisheries intended to promote the use of microorganisms for alleviating damage 
and loss from environment degradation and disease problems and reducing use of antib iotics in 
shrimp farming.  
 
5.  Form of Subsidy  
 
Grants.  
 
6.  To whom and how the subsidies is provided  
 
The Department of Fisheries provided grants for groups of shrimp farmers which had potential and 
capacity to establish 20 microorganisms production centers in 19 shrimp producing provinces.  
 
7.  The amount of the subsidy   
 
The budget for each center was 490,000 Baht. Total budget for 20 centers was 9,800,000 Baht.  
 
8.  Duration of the subsidy  
 
March – September 2018.  
 
 
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