12 December 2025
Let's examine what is bonded warehouse; this is a facility approved for storing imported goods with exemption from import and export duties, whether the goods are released in their original imported condition or after undergoing permitted processes. This exemption does not apply to goods originating within the country that are subject to export duty and brought into the bonded warehouse before being exported in the same condition.
All goods stored in a bonded warehouse remain under the supervision of the Customs Department. Storage is permitted for a maximum period of two years, with extensions allowed subject to the prescribed conditions. Bonded warehouses are established to serve three primary purposes:
Storage of imported goods
Display and sale of goods stored within the warehouse
Use as a facility for manufacturing, mixing, assembling, packing, or carrying out other authorised operations
This makes a bonded warehouse suitable for businesses that import goods for storage before domestic distribution or re-export to other markets, as duties are not paid immediately, enabling greater cash-flow flexibility and more efficient stock management.
Duty exemption for imported goods that are required to be re-exported overseas.
Lower working capital requirements as there is no need to pre-pay import duties, with flexibility to store goods for up to two years.
Ability to conduct quality checks (QC) or basic authorised operations within the designated bonded area.
Suitable for imported goods on which duties have not yet been paid, whether they are being stored, manufactured, assembled, packed, or awaiting export, all under the supervision of the Customs Department.
Storage-only bonded warehouses used strictly for holding imported items under customs control
Bonded warehouses permitted for display and sale activities under customs supervision
Bonded warehouses authorised for manufacturing, mixing, assembling, packaging or other processes before export
An automotive parts importer stores overseas parts in a bonded warehouse and pays duty only after selling to domestic dealers
A logistics company imports various products from different countries and uses the bonded warehouse as a distribution hub for regional customers
A free zone is a designated area where imported goods, machinery, raw materials and equipment can enter without import duty and VAT, as long as they remain inside the zone. Free zones are commonly used by export-oriented manufacturers, warehouses and regional distribution centres, making them ideal for businesses heavily involved in import–export operations.
Exemptions from import duty and VAT on goods used in production
Excise tax exemption where eligible
Significant reductions in raw material and tax costs
Smoother, faster import–export processing with structured customs procedures
Strong support for foreign investment and export-driven industries
Free zones at Don Mueang Airport, Suvarnabhumi Airport and U-Tapao Airport
Free zones within special economic development areas
Free zones under the Eastern Economic Corridor (EEC) scheme
Free zones inside industrial estates or BOI-promoted factories
Businesses must obtain approval from the Customs Department to establish a free zone
A traceable stock and accounting system is required
All goods entering or leaving the free zone must undergo proper customs checks and reporting
An electronics manufacturer in the EEC imports raw materials and machinery duty free, produces components and exports them abroad
An international logistics company uses a free zone as a regional distribution centre for neighbouring markets
References
เขตปลอดอากร (Free Zone). Retrieved on 24 October 2025 from https://www.customs.go.th/cont_strc_simple.php?ini_content=tax_incentive_160929_03&ini_menu=menu_tax_incentive&lang=th&left_menu=menu_tax_incentive_160928_04
คลังสินค้าทัณฑ์บน. Retrieved on 24 October 2025 from https://www.customs.go.th/list_multi_tab.php?link=cont_xsimple.php&ini_menu=menu_tax_incentive&left_menu=menu_tax_incentive_160928_03&ini_tab=menu_tax_incentive_160928_03&ini_content=tax_incentive_160928_02_160928_01&tab=menu_tax_incentive_160928_03_170404_01&&tab=menu_tax_incentive_160928_03_170404_01&xleft_menu=menu_tax_incentive_160928_03_170404_01
ระบบทะเบียนสิทธิประโยชน์ทางอากร. Retrieved on 24 October 2025 from https://www.fleth.co.th/attachments/import-export/1015_1015.pdf
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