On 4 November 2020, the Thai Board of Investment (BOI) announced that it was reinstating the International Procurement Office (IPO) category in order to encourage trade and investment, as well as strengthen Thailand’s supply chains. IPOs were previously replaced by the International Trading Center (ITC) category, which was superseded in turn by International Business Centers (IBC).
IPO businesses conduct the following activities:
1. Procurement of raw materials, parts, and semi-finished goods from Thailand or overseas;
2. Sale of goods to manufacturers for further processing and assembly of other products (cannot be directly sold to an end-user);
3. Export of raw materials, parts, and semi-finished goods that were purchased in Thailand.
Businesses that engage in promoted activities under the IPO category will enjoy import duty exemptions on machinery and raw materials used in export manufacturing, as well as non-tax incentives.
To be eligible for investment promotions, IPO businesses must meet the following criteria:
1. Undertake the procurement of raw materials, parts, and components used in manufacturing industries;
2. Own or rent a warehouse and manage inventory with an IT-based system used exclusively for warehouse management;
3. Employ required processes in merchandise procurement and management, namely quality inspection and packaging;
4. Undertake procurement domestically in Thailand;
5. Conduct domestic wholesale and/or overseas exports;
6. Have no less than 10 million Baht of registered capital.