New to Thailand’s warehouse and industrial real estate landscape? This glossary covers the key terms foreign companies encounter when setting up or expanding operations. Terms are listed alphabetically.
A
Amata Nakorn Industrial Estate
One of Thailand’s largest industrial estates, located in Chonburi province (EEC zone). Managed by Amata Corporation. Home to Toyota, Honda, Denso and hundreds of Tier-1 automotive suppliers. Includes an IEAT Free Zone section. Our Bangpakong site is ~30 km from Amata Nakorn — making it a practical buffer stock or overflow warehouse option for Amata tenants.
B
BOI (Board of Investment)
Thailand’s government investment promotion agency. BOI-promoted companies receive corporate income tax exemptions (3–8 years depending on activity and zone), import duty exemptions on machinery and raw materials, and non-tax benefits including work permit facilitation and 100% foreign ownership rights for promoted activities. Applications submitted via boi.go.th. Our EEC location qualifies for maximum BOI incentives.
Bonded Warehouse (Customs Bonded Warehouse)
A warehouse licensed by Thai Customs (กรมศุลกากร) where imported goods can be stored for up to 2 years without paying import duty. Duty is only triggered when goods leave the bonded area to enter the Thai domestic market. Ideal for importers who need flexible timing on customs clearance. A bonded warehouse licence can be applied for at most warehouse locations, including ours.
C
Chanote (โฉนดที่ดิน)
Thailand’s highest-grade land title deed. A Chanote confirms full ownership rights and the precise GPS boundaries of a land plot. When renting a warehouse, always verify the landlord holds a Chanote — not a lesser document like a Nor Sor 3 or possession certificate. KT Thai Property holds Chanote title deeds for all our properties.
CKD / SKD (Completely/Semi Knocked Down)
CKD: a vehicle or product imported as separate parts/components for assembly in the destination country. SKD: partially assembled. Thailand’s automotive BOI heavily incentivises CKD/SKD imports for local assembly — duty exemptions apply for qualifying manufacturers. Our large warehouse units support CKD staging and JIT delivery to assembly plants.
E
EEC (Eastern Economic Corridor / ระเบียงเศรษฐกิจพิเศษภาคตะวันออก)
Thailand’s flagship special economic zone covering Chachoengsao, Chonburi and Rayong provinces. Established by the EEC Act 2018. The EEC offers: maximum BOI incentive tier (Zone 3+), Smart Visa for foreign specialists, 50-year land leasehold for qualifying projects, one-stop permit service (EECO), and targeted infrastructure (high-speed rail, port expansions, airport upgrades). Our Bangpakong site is inside the EEC.
EECO (EEC Office)
The EEC Office is the government authority managing the Eastern Economic Corridor. EECO operates a One-Stop Service Centre for permits and approvals targeting 30-day processing. EECO works alongside BOI to attract investment in EEC’s 12 target industries (S-Curve sectors).
F
FBA (Foreign Business Act)
Thailand’s Foreign Business Act B.E. 2542 (1999) restricts foreigners from operating certain types of businesses without a Foreign Business Licence (FBL). Wholesale and retail trading, as well as many service activities, are on restricted lists. However, BOI-promoted companies are generally exempt from FBA restrictions for their promoted activities — a key reason to pursue BOI promotion.
Free Zone (เขตปลอดอากร)
A designated customs zone where goods can be imported, stored, processed and re-exported without import duties. Thailand’s Free Zones are managed by IEAT within its industrial estates. Key Free Zone benefits: 100% duty exemption on materials for export, simplified one-stop customs, VAT exemption on Free Zone transactions. Limitation: only available inside IEAT estates. See also: Free Zone warehouse guide.
G
GDP (Good Distribution Practice)
WHO and Thai FDA standard for pharmaceutical distribution. GDP requires controlled temperature, humidity, segregated storage zones, pest control, documented SOPs and continuous monitoring. Required for all pharmaceutical warehouse operators in Thailand distributing regulated medicines. Our warehouse structure supports GDP-compliant fit-out.
GMP (Good Manufacturing Practice)
Quality standard for manufacturing pharmaceuticals, food and medical devices. Required by Thai FDA and international buyers. GMP covers facility design, equipment qualification, documentation, personnel training and quality control. Our site’s factory licence (Ror Ngor 4) supports GMP-certified operations.
I
IEAT (Industrial Estate Authority of Thailand / การนิคมอุตสาหกรรมแห่งประเทศไทย)
Thai government body (state enterprise) that develops, manages and promotes industrial estates. IEAT manages both General Industrial Zones and IEAT Free Zones. Major estates: Amata Nakorn (Chonburi), Map Ta Phut (Rayong), Laem Chabang (Chonburi), Bangpoo (Samut Prakan), Welgrow (Chachoengsao). For businesses that need Free Zone status, they must lease/purchase inside an IEAT estate. Our site is near Welgrow (IEAT-managed) and Amata Nakorn.
R
Ror Ngor 4 (รง.4 / Factory Licence)
Ror Ngor 4 (abbreviated from the Thai name of the Factory Act notification) is the factory operating licence issued by Thailand’s Department of Industrial Works (DIW). Required for manufacturing and processing activities. Our EEC location at Bangpakong is permitted to issue Ror Ngor 4 licences for a wide range of industrial activities — a key advantage over many non-zone commercial warehouse sites where manufacturing is not permitted.
S
Smart Visa (EEC)
A special visa category for foreigners in EEC target industries. Smart Visa holders enjoy 4-year multiple-entry visas (vs standard 1-year Non-B visa), no 90-day reporting, and the right to work without a separate work permit. Categories: T (talent), I (investor), E (executive), S (startup). Requires endorsement from the relevant agency (BOI, EECO, DEPA etc.) and meeting salary/investment thresholds.
W
Welgrow Industrial Estate (นิคมอุตสาหกรรมเวลโกรว์)
An IEAT-managed industrial estate in Bangpakong, Chachoengsao — the same district as KT Thai Property’s warehouse. Welgrow focuses on electronics, electrical components and precision parts manufacturing. Its proximity to our site makes us a natural overflow/buffer warehouse option for Welgrow tenants, and a practical base for suppliers to Welgrow factories.
Still Have Questions?
We work with foreign companies from Japan, Korea, Taiwan, China, Europe and the US navigating Thailand’s warehouse and industrial landscape. Happy to explain any of these concepts in the context of your specific business. No obligation.
📞 081-147-8118 | 📧 info@ktthai.com | Line: @natree
Or explore our guides: Complete Warehouse 101 Guide | BOI Warehouse | Free Zone vs BOI | EEC Zone Explained