Part of the Warehouse 101 Series for foreign buyers.
Two questions we hear constantly from foreign companies evaluating Thailand: “Do I need a Free Zone?” and “Should I apply for BOI?” The honest answer is — it depends on your business model. This post gives you a clear decision framework.
Quick Decision Table
| Your Situation | Recommended Setup |
|---|---|
| Manufacturing 100% for export | IEAT Free Zone or BOI + bonded warehouse |
| Distribution to Thai market | BOI (logistics/DC) + standard customs clearance |
| Mixed: export + domestic sales | BOI promoted; bonded warehouse for imported materials |
| Small operation, under THB 10M investment | Standard EEC warehouse; BOI optional |
| Automotive/electronics OEM | IEAT Free Zone or EEC + BOI Activity Group A |
| Pharma / cold chain logistics | BOI Activity B1 + GDP-compliant facility |
| E-commerce fulfillment | Standard EEC warehouse; BOI possible for larger operations |
IEAT Free Zone — When It Makes Sense
The IEAT Free Zone is ideal when:
- You import large volumes of materials/components and re-export the finished product — duty exemption is the primary driver
- You want single-point customs management inside an industrial estate
- Your industry cluster is already located inside an IEAT estate (e.g., automotive in Amata Nakorn)
Downside: IEAT Free Zone facilities are inside specific estates only, availability is limited, and estate management fees apply. You cannot simply choose any warehouse — you must take space inside an IEAT estate.
BOI + EEC Warehouse — When It Makes Sense
BOI promotion paired with an EEC-zone warehouse is usually the better choice when:
- You want location flexibility — choose your site, not just what’s available inside an estate
- Your primary benefit is corporate tax reduction rather than duty exemption on materials
- You’re a service or distribution business (not a manufacturer importing bulk raw materials)
- You want lower headline rent than industrial estate rates
- You need to move in quickly — BOI applications can run concurrently with lease signing
Customs Bonded Warehouse — The Third Option
A Customs Bonded Warehouse licence (from Thai Customs) lets you import goods and store them duty-free for up to 2 years — only paying duty when they enter the Thai market. This works at most warehouse locations, including ours at Bangpakong.
This is ideal for importers who need flexible timing on customs clearance — e.g., seasonal goods, buffer stock for just-in-time delivery.
Cost Comparison
| Cost Factor | IEAT Free Zone | EEC BOI Warehouse (KT Thai) |
|---|---|---|
| Headline rent | THB 150–300/sqm/mo | THB 120–200/sqm/mo |
| Estate common fees | THB 20–50/sqm/mo | None |
| Setup / fit-out | Standard | Standard |
| CIT on profit | Partial/exempt | Exempt up to 8 years (BOI) |
| Import duty on machinery | Exempt | Exempt (BOI) |
| Agency / broker fee | Often charged | None (owner-direct) |
Our Recommendation
For most distribution, logistics and mixed-use operations: EEC warehouse + BOI promotion gives better financial outcomes than a Free Zone, with more flexibility and lower overall cost. If you’re a large-scale exporter manufacturing with heavy material imports, explore IEAT Free Zone — but speak with a BOI consultant first, as many operations qualify for an equivalent or better setup outside the estate.
📞 081-147-8118 | 📧 info@ktthai.com | Line: @natree — we’ll connect you with a BOI advisor if needed.