INVESTMENT PROMOTION ACT - BOI

1 INVESTMENT PROMOTION 2520 Amended byINVESTMENT PROMOTION ACT (NO. 2) 2534 Amended byINVESTMENT PROMOTION ACT (NO. 3) 2544 January 20022 INVESTMENT PROMOTION 2520 Amended byINVESTMENT PROMOTION ACT (NO. 2) 2534 Amended byINVESTMENT PROMOTION ACT (NO. 3) 2544 -----------------------------------His Majesty King Bhumibol Adulyadej is graciously pleased toproclaim that:Whereas it is expedient to revise the law on PROMOTION ofinvestment;Be it, therefore, enacted by the King, by and with advice andconsent of the National Administrative Reform Assembly as follows:Section 1. This Act is called the INVESTMENT PROMOTION Act, Section 2. This Act shall come into force as from the day followingthe date of its publication in the Government 3. The following are he re by re pe ale d:(1) Announce me nt of the Re volutionary Party N o. 31 date d 29thN ove mbe r, 2501; and(2) Announce me nt of the N ational Exe cutive Council No.

2 227,date d 18th Octobe r, other laws, rules, and regulations in so far as they deal withmatters governed by this Act. Or are contrary to, or inconsistent with theprovisions of this Act, shall be replaced by this 4. In this Act, Applicant means one who applies for INVESTMENT promotionunder this Act; Published in the Government Gazette Volume 94, Part 38, Special Issue,dated May 4, 2520 ( 1977) Published in the Government Gazette Volume 108, Part 201, Special Issue,dated November 21, 2534 ( 1991) Published in Government Gazette Volume 118, Part 110 Kor., Decree Issue,dated November 30, 2544 ( 2001)3 Promoted person means one who is granted a promotioncertificate under this Act; Machinery means the machinery which is essential for thepromoted activity and those which are essential for the construction of afactory, and includes component parts, equipment, tools, implements,and pre-fabricated factory structures to be assembled as a factory; Board means the Board of I nvestment; Member means a member of the Board of I nvestment, andincludes the Chairman and the Vice Chairman of the Board ofInvestment; Advisor means an advisor to the Board of INVESTMENT ; Secretary General means the Secretary General of the Board ofInvestment; Office means the Office of the Board of INVESTMENT ; Compe te nt Office me ans one who has bee n appointe d by thePrime Minister for the execution of this 5.

3 The Prime Minister shall have charge and control ofthe execution of this Act and shall have the power to appoint competentofficials for the execution of this ter 1 Board, Advisors and Competent OfficialsSection 6. There shall be a Board of INVESTMENT consisting of thePrime Minister as Chairman, the Minister of Industry as Vice Chairman,not more than ten other competent persons appointed by the PrimeMinister to act as members, and the Secretary General as member andsecretary to the Board, having the powers and duties under this Prime Minister may appoint not more than five othercompetent persons to act as 7. A member or advisor shall hold office for term of twoye ars .In the case where a member or an advisor is appointed, either asan addition or as a replacement, during the term of office of members oradvis ors alre ady appointe d, the pe rs on s o appointe d s hall hold office onlyfor the remaining term of his member or advisor who vacates his Office may be 8.

4 Apart from the expiration of term of office undersection 7 paragraph one, a member or advisor vacates his office upon:(1) de ath,(2) resignation,(3) dismissal by the Prime Minister,(4) be ing adjudge d bankru pt,(5) being adjudged incompetent or quasi-incompetent, or(6) being imprisoned by a final judgement to imprisonment, exceptfor a petty offence or an offence committed by a member or advisor vacates his office under paragraphone, the Prime Minister may appoint any other person to fill the 9. The Chairman of the Board shall convene a a meeting, the attendance of not less than one-half of totalnumber of members of the Board shall be required to constitute Chairman shall preside over the meeting. If the Chairman isabsent from the meeting or is unable to attend, the Vice Chairman shallpreside over the meeting. If the Vice Chairman is absent from the meetingor is unable to attend, the members present shall elect one of them topreside over the de cision of the me eting s hall be take n by a majority of votes.

5 Each member shall have one vote. I n case of an equality of votes,the person who presides over the meeting shall cast another vote as ade 10. In the case where the Chairman is unable to performhis duties, the Vice Chairman shall act on his behalf. If the Chairmanand the Vice Chairman are unable to perform their duties, the SecretaryGeneral shall convene the meeting in order that a member may be electedto act on behalf of the 11. I n the performance of duties under this Act, theBoard may authorise the Office to act on its behalf, appoint sub-committees to perform any assigned duties, or summon any personconcerned to give facts, explanations, advice or provis ions of se ction 9 shall apply mutatis mutandis themeetings of the completion of the assigned duties under paragraph one, theOffice or the sub-committees, as the case may be, shall report to theBo 12. Members, advisors and members of sub-committeesshall be entitled to receive such remuneration as may be prescribed bythe Council of 13.

6 The Office shall be administered by the SecretaryGeneral who shall be responsible for the administration of the office anddirectly under the Prime Minister. There shall be Deputy SecretaryGeneral (s) and there may also be an Assistant Secretary General toassist the Secretary General in carrying out his Secretary General, Deputy Secretary General (s) and AssistantSecretary General shall be ordinary civil Office shall have the following powers and duties:(1) to perform such functions as may be resolved or assigned to itby the Board;5(2) to undertake works to publicise INVESTMENT potentials andinduce investments in those activities which are important andbeneficial to economic and social development, and security ofthe country;(3) to establish an INVESTMENT Services Centre to assist prospectiveinvestors and investors in obtaining permissions and servicesrelated to INVESTMENT which include facilities and assistance toprospective investors in the implementation of investmentproje cts.

7 (4) to appraise proje cts re ques ting PROMOTION , s upe rvise , control,and e valuate promote d inve stme nt proje cts ;(5) to conduct studies and research in identifying investmentopportunities , pre pare fe as ibility re ports, and formulate aninvestment PROMOTION programme;(6) to study and compile data relating to INVESTMENT on theKingdom;(7) to perform other duties in the furtherance of the objectives ofthis 14. A competent official shall have the power to enter thepre mise s of the applicant and of the promote d pe rson during workinghours for inquiry of fact from any person on such premises orexamination of any document or thing relating to the activity in whichthe PROMOTION is being sought or has been granted, as may be n the case where the competent official intends to enter thepremises, referred to in paragraph one, the applicant or the promotedperson shall, except in case of urgency, be notified in writing at areasonable time in ter 2 Applying for and Granting of PromotionSection 16.

8 The activities which are eligible for investmentpromotion by the Board are thos e which are important and bene ficial tothe economic and social development, and security of the country,activities which involve production for export, activities which have highcontent of capital, labour or service or activities which utilise agriculturalproduce or natural resources as raw materials, provided that in theopinion of the Board, they are non-existent in the Kingdom, or existentbut inadequate, or use out-of-date production Board s hall make an announce me nt des ignating the types andsizes of INVESTMENT activity eligible for PROMOTION and may stipulate therein the conditions under which PROMOTION is to be granted and mayamend or abolish those conditions at any n the case where the Board is of the opinion that any activityannounce d to be e ligible for PROMOTION unde r paragraph two no longe rrequires to be promoted, it may announce a temporary or permanentcancellation of PROMOTION for that 17.

9 A person who seeks to be a promoted person shall fileto the Office and application for PROMOTION in accordance with the rules,proce dure and forms pres cribe d by the Se cretary Ge ne ral, des cribing theinvestment project for which PROMOTION is promote d pe rs on s hall be a company, a foundation or a co-operative established in accordance with the respective for PROMOTION prior to the formation of a company, afoundation, or a co-ope rative unde r paragraph two s hall be made inaccordance with the rules, procedure and forms prescribed by theSecretary 18. The INVESTMENT project to which the Board may grantpromotion shall be one which is economically and technologically will be given to:(1) the existing number of producers and production capacity inthe Kingdom and the size of production capacity to be createdunder PROMOTION compared with demand estimates;(2) the prospect for which such activity will expand the market forthe products or commodities produced or assembled in theKingdom and will encourage the production or assembly in theKingdom;(3) the quantity and proportion of the resources available in theKingdom including the capital.

10 Raw or essential materials andlabour or other services utilised;(4) the amount of foreign currency which may be saved or earnedfor the Kingdom;(5) the suitability of the production or assembly processes;(6) other requirements which the Board deems necessary andappropriate .Section 19. The INVESTMENT project to which the Board may grantpromotion shall be one which incorporates appropriate measures for theprevention and control of harmful effects to the quality of the environmentin the interest of the common good of the general living of the public andfor the perpetuation of mankind and 20. In the case where the Board deems it appropriate togrant PROMOTION to any applicant, the Board may stipulate conditions inthe PROMOTION certificate for the compliance by the promoted person inone or more areas as follows:(1) amount and source of capital;(2) nationality and number of shareholders;(3) size of activity including the types of products, commodities orservices and the production or assembly processes, andcapacity thereof;(4) amount of local raw materials to be used;(5) nationality and number of workers, technicians and experts;(6) training and employment of manpower;7(7) prevention and control of damaging elements to the quality ofthe environment;(8) period of time to commence the implementation of thepromoted project;(9) period of time to place orders for the purchase of machinery;(10) period of time to import machinery into the Kingdom.