G/SCM/Q2/THA/24  
 
6 May 2014  
(14-2775)  Page: 1/2  
Committee on Subsidies and Countervailing Measures  Original: English  
 
  SUBSIDIES 
QUESTIONS POSED BY THE UNITED STATES REGARDING THE NEW 
AND FULL NOTIFICATION OF THAILAND1 
The following communication, dated 2 May 2014, is being circulated at the request of the 
Delegation of the United States.  
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  N/220, Page 3, Program I. Investment Promotion Incentives 
 
The Thailand Board of Investment (BOI) administers a very wide range of incentive programs pursuant to the Investment Promotion Act (1977) (Amended 1991, 2001) (IPA). Many of these 
appear to be relatively complex schemes that warrant greater elaboration in subsidy notifications 
pursuant to Article 25 of the SCM Agreement. For instance, in reply to past questions
2, Thailand 
has indicated that a BOI policy to promote passeng er car and motorcycle production with import 
duty and income tax exemptions was a component of the BOI's Investment Promotion Incentives 
program.3 However, no information regarding this particular policy could be gleaned from either 
N/186 or N/220. These notifications also provide no information as to additional BOI policies 
identified in publicly available information.4 
 
 Could Thailand please submit notification with su fficient detail with regard to the BOI policy 
to promote passenger car and motorcycle production as identified in THA/23? 
 Could Thailand submit notification with sufficient detail regarding a BOI policy announced in 
November 2009 in connection with its "One Start One Stop" initiative under which, according to TPR/255 at page 77, enterprises qualify for tax incentives on investments with value-
added of at least 20% of sales revenue? Does the value-added requirement equate to 
certain levels of local content in production? 
 Could Thailand submit notification with sufficient detail as to another BOI policy announced 
in April 2010 under which, according to TPR/255 at page 78, investment in certain sectors - 
e.g. biofuels, biotechnology, high technology an d agricultural equipment—is encouraged with 
tax-based incentives? 
 Further, could Thailand also submit notification with sufficient detail regarding incentives 
provided under the Skill, Technology and Innovation (STI) Scheme, mentioned at page 79 of 
TPR/255 as another BOI initiative per Announcements No. 3/2549, 6/2552 and 11/2552? 
N220, Page 5, Program II. Industri al Estate Authority of Thailand 
 
TPR/255 at page 72 noted that under the program's current governing measure, I-EA-T Act B.E. 
2007, raw materials and components that enter I-EA-T Free Zones are entitled to tax and duty 
exemptions if they are produced locally. TPR/ 255 at page 73 also mentions a free zones program 
introduced in 2000 by the Thai Customs Department, under which goods entering free zones are 
                                               
1 G/SCM/N/220/THA-G/SCM/N/253/THA (11 July 2013), Subsidies Notification ("N/220"). 
2 G/SCM/N/186/THA (12 November 2009), Subsidies Notification ("N/186"). 
3 G/SCM/Q2/THA/23 (21 May 2010), Reply to Questi ons Posed by the United States ("THA/23"). 
4 See, e.g. WT/TPR/S/255 (24 October 2011), Report by the Secretariat, pages 67-79 ("TPR/255"). G/SCM/Q2/THA/24 
 
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  exempted from import duties, VAT, excise tax, ex port duty and export tax. It is unclear whether 
these incentives also fall under the I-EA-T Free Zones program notified in N220.  
 Could Thailand provide information with sufficient detail regarding the tax and duty 
exemptions for locally produced raw materials and components in light of the obligation 
under Article 3.1(b) of the SCM Agreement? 
 Please clarify whether the free zones program mentioned in TPR/255 at page 73 is different 
from the I-EA-T Free Zones program under I-EA-T Act  B.E. 2007 . 
 Could Thailand please submit a complete notification regarding all of its free zones 
incentives, with sufficient detail to satisfy th e requirements of Article 25.3 of the SCM 
Agreement or explain why they are not su bject to the notification obligation? 
 
 
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