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Grant Approval for Industrial Estate Developers

HANDBOOKw w w . i e a t . g o . t hIndustrial Estate Authority of Thailand

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G r a n t A p p r o v a l f o r I n d u s t r i a l E s t a t e D e v e l o p e r s /

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P R E F A C E

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www.ieat.go.th .

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The Industrial Estate Authority of Thailand, or the IEAT, has responsibilities in grantingapproval to operators wishing to establish or expand an industrial estate. Some grants of the IEATare permits for the master plan, construction plans of infrastructure systems, facilities, and landallotment. The IEAT also provides services to developers for land utilization, construction, commercingoperation, tax privilege requests, and work permits for alien, skilled workers. These services will becarried out accordingly to the laws regulations and with respect to announcement. Furthermore,the IEAT has been enhancing the procedures and regulations in order to give more convenience toits applicants. The enhancements will provide applicants with fast, convenient, transparent andaccountable services.

The Development for joint managing industrial estate handbook was complied by the IEATwith the objective of aiding its applicants in the initial procedure processes. The handbook providesapplicants with easy step by step procedures for all grants and approval. Applicants can obtainmore information from the IEAT website at www.ieat.go.th, or by contacting the Joint IndustrialEstate Administration Department and all industrial estate offices.

The Industrial Estate Authority of Thailand February 2005

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C O N T E N T S

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1 Part 1 Editorial

1 The Definition of Joint Managing Industrial Estate

2 Privileges Received from Joint Managing

2 /Part 2 Grant Approval Procedures for Industrial Estate Developers

1 The Establishment of Joint Managing Industrial Estate

2 Declaration of an Industrial Estate Zone

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(Environmental Impact Assessment : EIA)Approval for the Environmental Impact Assessment

4 (Master Plan)Application for Authorization of the Master Plan

5 Application for Authorization Construction Plans of Infrastructure Systems andother Facilities

6 Application for permit Land Allotment of Industrial Estate

Appendix

Privileges for Industrial Operators and Export Processing Operators in IEAT

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1 EDITORIAL

(Developer) (Strategic Production Base)

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Presently The Industrial Estate Authority of Thailand (IEAT) has made many alterations to itsstructure, which is distinctly different from its original one. The purpose of the alterations werebecause there will be more association and collaboration between the government sector and theprivate sector (Developer).

This cooperation force between both sectors will generate growth of Thailand's industryenabling Thailand to compete with its regional neighbors and foreign countries. The industry willabide by the environmental and safety laws along with adhering to the government policies in

expanding the industry throughout the region. All of this will be in accordance to the structureof the Joint Managing Industrial Estate, which is a strategic production base containingorganization techniques with factors in production, business and service that work and balancealongside the environment and society.

The IEAT has assembled a handbook grant approval for industrial estate developers to be ofbeneficial use when developers apply for various grant approvals with hopes of fast, convenient,

transparent, accountable and standard services.

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1 1.1

1.2

(Developer)

1.3 (Developer)

1.4

1 The Definition of Joint Managing Industrial Estate1.1 An area used for industrial purposes and for any activities relating to the establishment of

an industry under the agreement of the Industrial Estate Royal Decree.1.2. An area established and equipped by the developer that complete with infrastructure

systems and facilities. The procurement of land, developed, serving and will be consistentlymaintained infrastructure systems that there are invested by the developer.

1.3. An area that has been authorized and regulated by the Industrial Estate. The Industrial

Estate also administers and provides support to the developer in developing the area intoan Industrial Estate in accordance to the laws, regulations, and standards of IEAT andconcerning of the offices.

1.4 An area in which the developer receives privileges in accordance to the Industrial EstateRoyal Decree and additional support for the project provided by the government sector.As sush as industrial Estate operated by IEAT.

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2 2.1

(1) . (Marketing)

(2) .

(3)

(4)

2 Privileges Received from Joint Managing2.1 Developer

(1) The developer will receive privileges according to the IEAT Royal Decree in Marketing.This will create trust in conjunction with forming a good reputation in the eyes of bothThai and foreign investors.

(2) Joint Managing Industrial Estate will be supported by the government. The governmentwill guarantee that the IEAT will be the government sector responsible for operators

establishing a factory in the Industrial Estate for eternity.(3) The application process is faster, more convenient, and concise due to the fact that

developer apply for grants declaration of industrial estate zone, permit land allotment,building construction permit, commercing operation etc. at the Industrial Estatewithout having to permit to further at other organizations.

(4) Developers will receive privileges in coordination with both government and privateorganizations.

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2.2

(1)

(2) .

(3) .

(4)

2.2 Industrial Estate Authority of Thailand (IEAT)

(1) The IEAT will achieve the government policies of expanding the Industrial Estatethroughout the region under the environmental regulation and management system.

(2) The IEAT will form ties with both the government and private sectors in developingindustrys the infrastructure. This will in supporting investment and industrial operation,so that the IEAT will not be burdened in forming its own industrial estate.

(3) IEAT will accomplish its provided of having the private sector take part in the

establishment of an Industrial Estate.(4) A figure of speech of the Industrial Estate Authority of Thailand (IEAT) is created since

the private sector is taking part in the joint managing.

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EIA

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* Applicants must submit all the required documents forestablishing an industrial estate as required by the IEAT.This is in order for the IEAT to propose the following documentto Board of Directors of the IEAT for evaluation

Diagram of Grant Approval Procedures for Industrial Estate Developers

5 Days

Acknowledged of evaluationresults by applicants and Followout procedures :

- Measure and DivideLand Deed

- Request for InfrastructureSystems Inspection

- Conduct a letter ofguarantee for unfinishedInfrastructure Systems

IEAT Evaluation andOffer to Governor or Deputy

Governor Operations 2Authorization in Issue andNotification of permission

Applicant Request for theissue permission of Land

Allotment

Issue Permission of LandAllotment and Inform

Notification of Permissionto the Province

5 Days

1. The Establishment of Joint Managing Industrial Estate

Submit Application form for theEstablishment of an Industrial Estate *

Evaluation Results and Proceed toprocedures by the Applicants

IEAT will Evaluate the Pre Feasibility Study

Site Location Survay

Submit to the Board of Directors of the IEAT

60 Days

Authorization of Joint Managing Contract 7 Days

2. Declaration of an Industrial Estate Zone 3 Approval Process for the Environmental Impact Assessment (EIA)

Declared an

Industrial Estate

Zone

Create Draft ofDeclaration and Map

Proposal to the Ministry of Industry or the Chairmanof Board of Directors of the IEAT for Declarationof an Industrial Estate Zone and announcement

under the Government Gazette

7 Days Submit the EIAto the IEAT

The IEAT review EIA and makepreliminary comment

Results to theApplicants

Submit to office of NaturalResources and Environmental Policyand Planning for Approval (ONEP)

3 Days

EIA Approved by ONEP

4. Application for Authorization of the Master Plan 6. Application for permit Land Allotment of Industrial Estate

Submit applicationform for Approval of theMaster Plan Along with

Related Documents

IEAT Evaluation andCoordination with

Applicants that statingdetail of evaluation

within 3 Days

Authorization of the

Master Plan

5 Days

5. Application for Authorization Construction Plans ofInfrastructure Systems and Other Facilities

Submit Application formfor the Approval of theInfrastructure Systemsand Other Facilities ofConstruction Plans

IEAT Evaluation withCoordination with

Applicants

Approval ofInfrastructure Systemsand Other Facilities ofConstruction Plans

Incomplete Documents/Disagrecment ApplicantsChange and improvement

Proposal to the Board of Directors of theIEAT or Governor or Deputy Governor

Evaluation of Agreement while conductinga notification of the Evaluation Results

operation 2 to the Applicant and Province

IEAT EvaluationSubmit Application forpermit Land Allotment

5 Days

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1 1.1

1.2

1.3

1.4

2 /GRANT APPROVAL PROCEDURES FOR INDUSTRIAL ESTATE DEVELOPERS

1 The Establishment of Joint Managing Industrial Estate1.1 Private or Government Sectors interested in proposing an area for establishment of joint

managing industrial estate will submit an application form its along with relateddocuments to the Strategy and Strategic Planning Division of the Strategy Department inthe Industrial Estate Authority of Thailand.

1.2 The IEAT will evaluate the initial suitability notification of evaluation results to the privateor government sectors. In cases where location is suitability. The IEAT will coordinate with

private or government sector for an inspection date of survey location.1.3 The IEAT will survey location inspection according to the location inspection routine of

establishment. If the location abides by the regulations its. The IEAT will be submitted tothe Board of Directors of IEAT for agreement establishment while conducting a notificationof the evaluation results.

1.4 In the case where there is consent, the IEAT coordinate with the private or governmentsector in drafting joint managing contract and the date of authorization its.

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1.5 . 1/2539 22 2539 2 1

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1.5 The joint managing according to the IEAT announcement of 1/1996 (Authorized onAugust 22 1996) consists of 2 alternative methods :Alternative 1 The developer transfers rights of all immovable property, instruments,

infrastructure systems, and other facilities to the IEAT. The IEAT will bemanage for the above services.

Alternative 2 The developer does not transfer rights of all immovable property,instruments, infrastructure systems, and other facilities to the IEAT.The developer will be manage for the above services.

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2.1

2 Declaration of Industrial Estate Zone2.1 The developer submits application for the Declaration of Industrial Estate Zone

along with related documents to the Legal Department or the Joint Industrial Estate

Administration Department in the IEAT.

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2.2 .

2.3

3 (Environmental Impact Assessment : EIA )3.1

3.2

3.3

3.4

2.2 The IEAT will evaluate the application along with related documents while creating adeclaration and map. It is to be submitted to the Chairman of Board of Directors of the IEAT.

2.3 The IEAT will sent declaration that announce under the Government Gazette.

3 Approval for the Environmental Impact Assessment (EIA)3.1 The developer submits application for the Environmental Impact Assessment (EIA) to the

Environment and Energy Division and Environmental of Safety Department in the IEAT.3.2 Environment and Energy Division and Environmental of Safety Department will evaluate

premiere application along with providing suggestions to the developer and consultcompany.

3.3 The IEAT will send the EIA to the Natural Resources and Environmental Policy and Planning.3.4 The Natural Resources and Environmental Policy and Planning will give consent on the EIA.

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4 4.1 (Master Plan)

(Conceptual Design)

4.2

4.3

5 5.1

5.2

4 Application for Authorization of the Master Plan4.1 The developer submits application for authorization of the Master Plan with the

conceptual design and related documents to the Developer Business Service Division ofthe Joint Industrial Estate Administration Department in the IEAT.

4.2 The IEAT will coordinate with developer and a consultant state detail of the evaluation.4.3 The Master Plan will be approved by the IEAT.

5 Application for Authorization Construction Plans ofInfrastructure Systems and otherFacilities

5.1 The developer submits an application for the approval for construction plans ofinfrastructure systems and other facilities along with related documents to the DeveloperBusiness Service Division of the Joint Industrial Estate Administration Department in theIEAT.

5.2 The IEAT will evaluate the construction plans of infrastructure systems and other facilities

and notification of the evaluation results.

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6 6.1

(1)

(2)

(3) . ( 2 )

(4) - -

6 Application for permit Land Allotment of Industrial Estate6.1 Permit Procedures for Land Allotment of Industrial Estate

(1) The developer submits an application for Land Allotment along with related documentsto the Developer Business Service Division of the Joint Industrial Estate AdministrationDepartment in the IEAT.

(2) The IEAT will evaluate the application and coordinate with applicants in statingdetail its. The IEAT survey location of issue a permit land allotment of industrial estate.

(3) The IEAT will submit a proposal of authorization to the Board of Directors of the IEAT orGovernor or Deputy Governor Operation 2 and evaluate agreement while conducting anotification of the evaluation results for the applicant and the province.

(4) After the developer has been notified of the results and process to :- The developer will submit the measured and divided land deed to the Land and

Premise Division of the province in which the land is located on.- The developer will submit for inspection of infrastructure and other facilities at the

Developer Business Service Division of the Joint Industrial Estate AdministrationDepartment.

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(5)

(6) ( 2)

- Working group inspection of the infrastructure systems and facilities LandAllotment of joint managing industrial estate will be conducted.

In cases where the infrastructure systems and other facilities have not yet beencompleted, the developer must have a bank or a financial institution that conducta letter of guaranteeing the unfinished infrastructure systems.

In cases where all the infrastructure systems and facilities have been completed the

developer will carry out the next procedures.

(5) The developer will submit application for the Issue permission of land allotmentalong with related documents to the Developer Business Service Division of the JointIndustrial Estate Administration Department in the IEAT.

(6) The IEAT will evaluate the application that has submited an authorization in issuepermission and Plan of Land Allotment Project by the Governor of the IEAT or Deputy

Governor Operation 2. The IEAT will be sent issue permission and plan of land allotmentproject to the developer and copy its will be sent to notify the province.

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6.2

(1)

(2)

(3) ( 2)

(4) - -

6.2 Application for permit to revise the plan of Industrial Estate Land Allotment Project

(1) The developer will submit an application of Request for permit of revise the plan ofIndustrial Estate Land Allotment Project along with related documents to theDeveloper Business Service Division of the Joint Industrial Estate AdministrationDepartment in the IEAT.

(2) The IEAT will evaluate the documents and coordinate with developer in stating details.

The IEAT survey location of issue a permit land allotment of industrial estate.(3) The IEAT will submit a proposal to Governor of the IEAT or Deputy Governor Operation 2

for approval of revision in the Plan of Industrial Estate Land Allotment Project along witha notification letter of the evaluation results to the developer and the province.

(4) After the developer has been notified of the results, Follow out procedures :- The developer will submit the measurement and divided land deed to these Land in

Province Land Office.

- The developer will submit for inspection of infrastructure and other facilities at theDeveloper Business service Division of the Joint Industrial Estate AdministrationDepartment.

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(5) ()

- Working group inspect of the infrastructure systems and facilities in the jointmanaging industrial estate land allotment project will conduct infrastructure andother facilities.

In cases where the infrastructure systems and other facilities have been unfinished,the developer must have a bank or a financial institution that conduct a letter ofguaranteeing the unfinished systems.

In cases where all the infrastructure systems and facilities have been completed thedeveloper will carry out the next procedures.

(5) The developer will submit an application for an issue permission of revised the plan ofindustrial estate land allotment project and permission of land allotment (in caseswhere the developer submit for additional land allotment) along with relateddocuments to the Developer Business Service Division of the Joint Industrial EstateAdministration Department.

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(6) ( 2)

6.3

(1)

(2)

(3) ( 2)

(6) The IEAT will evaluate the application and submit an authorization an issue permissionof revised the plan of industrial estate land allotment project, permission of landallotment and plan of land allotment project by Governor of the IEAT or DeputyGovernor Operations 2. The IEAT will be sent to the developer and a copy of issuepermission and plan of land allotment project will be sent to notify the province.

6.3 Application for permit Land Mortgage of Allotted Land

(1) The developer will submit an application for land mortgage of allotted land along withrelated documents to the Developer Business Service Division of the Joint IndustrialEstate Administration Department in the IEAT.

(2) The IEAT will evaluate the application and coordinate with developer in stating details.The IEAT survey location of issue a permit land mortgage of Allotted Land.

(3) The IEAT will submit a proposal to the Board of Directors of the IEAT or Governor orDeputy Governor operation 2 for evaluation in issuing a land mortgage permit to thedeveloper. The IEAT will be sent to the developer and the province for notification.

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APPENDIX

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1. . ( 44)

2. . ( 45)

3. 45 . ( 46)

Privilege which the Industrial Operator and Export Processing Operatorsin Industrial Estates shall receive, under the Act Governing The Industrial EstateAuthority of Thailand B.E. 2522, as Amended

Non-Tax Privilege in General Industrial Zone and Export Processing Zone

1. Both Thai and alien industrial operator and trader for export, shall be permitted to hold titleover land in industrial estates to operate its business for areas which the Board of Director

of IEAT deems appropriate, to the extent of exceeding the limit prescribed by other laws(Section 44)2. An industrial operator and trader for export shall be permitted to bring in aliens who are

skilled persons, expert, their spouses and dependents, into the Kingdom and live in theKingdom, for the number and within the periods which the Board of Director of IEAT deemsappropriate. (Section 45)

3. An alien skilled person and expert who is permitted to stay in the Kingdom under Section45 is allowed to work in the position which the Board of Director of IEAT approves,throughout the period permitted to stay in the Kingdom. (Section 46)

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4. ( 47)

1. ( 48 ... . .. 2522 )

4. An industrial operator and trader for export who has domicile outside the Kingdom shall bepermitted to remit money in foreign currencies out of the Kingdom only when the saidamount is an inward remitted investment, dividends or profit derived from such investment,foreign loan and the money which the operator has obligations in foreign countries (section47)

Tax Privilege in Export Processing Zone

1. Exemption from special fees subject to the law governing investment promotion, importduty, value added tax and excise tax for machinery, equipment, tools, including part thereof which are required for production of goods and those used in the construction, assemblyor installation of a factory or building (under Section 48 of Act Governing the IndustrialEstate Authority of Thailand B.E. 2522, as amended.)

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2. ( 49 ... ... 2522 )

3. 49 ( 50 ... . .. 2522)

4. 48 49 ( 52)

2. Exemption from special fees subject to the laws governing investment promotion, importduty, value added tax and excise tax for items imported for use in production of goods(under Section 49 of Act Governing the Industrial Estate Authority of Thailand B.E. 2522,as amended)

3. Exemption from export duty, value added tax and excise tax for items imported underSection 49, including by-products and items derived from such production (under Section50 of Act Governing the Industrial Estate Authority of Thailand B.E. 2522, as amended.)

4. Exemption from or refund of taxes and duty for things subject to the provisions of laws tobe exempted from or refund of taxes and duty, upon exportation of items out of theKingdom, even though such items were not exported but were imported into the ExportProcessing Zone for use under Section 48 or Section 49 (Section 52)

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Industrial Estate Authority of Thailand

618 10400

. : (66) 2253 0561 : (66) 2650 0210 Call Center (66) 2365 9699Internet Home Page : http://www ieat go th E-mail : ieat@ieat go th