Current automotive policies are as follows:
1. The limitation of the number of automotive firms was abolished. Consequently, new automotive companies enjoy free entry into the automotive industry.
2. The Board of Investment may grant rights and privileges for the production of automotive assemblies and automotive parts.
3. Incentive measures for automotive exports are as follows:
3.1 Tax reimbursement on imported materials for export production, as article bis 19 of the Customs Act
3.2 Tax redemption on exported parts and vehicles, as announced by the Ministry of Finance
3.3 Tax reduction on imported materials, as regulated in article 30 of the Investment Promotion Act, by redemption of import duty
3.4 Permission given in order to establish stock warehouse and import-tax exemption for imported materials
3.5 The Introduction of Export Promotion Zone (EPZ) in order to help exporters on governmental procedures, including financial matters
3.6 Encouragement of cooperation among ASEAN countries, especially on industrial matters such as AICO and BBC
3.7 Establishment of Free Trade Zone Area (FTZ) in order to support exportrelated investments in terms of customs procedures, including production, trade and services. The introduction of import-and-export tax exemption.
4. The Ministry of Industry announced emission and safety standards for automotive products. These standards apply to both domestically produced and imported passenger vehicles, commercial vehicles, motorcycles, as well as auto parts. At present, all the compulsory standards are as follows:
5 Tariffs on vehicles, including import duty, excise tax, municipal tax and value added tax, are divided into two groups: assembled vehicles – Completely Built Up (CBU), and Completely Knock Down sets (CKDs).
(see table A-7 in Appendix for detail of current tax and tariff rates)
