The Cabinet on Tuesday approved an 8-month waive on import tariffs on machinery and completely-built units (CBU) as well as components, Industry Ministry Wannarat Charnnukul said.
The temporary measure will stand from October 25 this year until June 30, 2012 and cover only imports to substitute lost production in the Kingdom, Wannarat added. Details on this would be determined by the Industrial Economics Department.
Though several assemblers are affected, only Honda Automobile (Thailand) Co Ltd is eligible for zero tariffs for the imports of vehicles, as floods completely shut down its plant operations in Rojana Industrial Park in Ayutthaya. The plant, with 240,000 annualised capacity, has been suspended since early October.
Water drainage continues at Rojana and other inundated industrial estates, except Bangpa-in Industrial Estate which was recently fully recovered. The drainage at Rojana is expected to be completed at the end of this month, to allow rehabilitation process at factories. Hundreds of new cars have been totally damaged.
Pitak Pruittisarikorn, executive vice president of Honda Automobile (Thailand), on Tuesday reiterated the company's plan to demolish all the damaged vehicles in line with the insurance policy. It would be not resold or donated to vocational schools as teaching materials, to prevent the possibility that donated vehicles could find way to markets. He also assured that no part of the damaged vehicles would be left from the demolition and reused.