1. Free Zone Business Model

2. Free Zone Business Model 1 Manufacturing Waxing Casting Setting Polishing QC Packing 2 Commercial Buying Selling Raw Material, Tools, Finished goods 3 Services Distribution Sorting Repacking Assembling Exhibition Show Case Repairing

3. 1 Manufacturing Waxing Casting Setting Polishing QC Packing

4. 1Manufacturing OVERSEAS THAILAND COMPANY “ S ” GEMOPOLIS FREE ZONE COMPANY “ C ” 1 OTHERS PRIVILEGE - BOI - BONDED WAREHOUSE - CUSTOMS FZ I-EA-T Free Zone 1 1 1 2 1 2 = No VAT No Duty = Duty + VAT COMPANY “LOCAL” 1

5. 2 Commercial Buying Selling Raw Material, Tools, Finished goods 1 Manufacturing Waxing Casting Setting Polishing QC Packing

6. 2Commercial OVERSEAS THAILAND COMPANY “ S ” GEMOPOLIS FREE ZONE COMPANY “ C ” 1 OTHERS PRIVILEGE - BOI - BONDED WAREHOUSE - CUSTOMS FZ I-EA-T Free Zone 1 1 1 2 1 2 = No VAT No Duty = Duty + VAT COMPANY “LOCAL” 1

7. 3 Services Distribution Sorting Repacking Assembling Exhibition Show Case Repairing 2 Commercial Buying Selling Raw Material, Tools, Finished goods 1 Manufacturing Waxing Casting Setting Polishing QC Packing Free Zone Business Model

8. 3 International Distribution OVERSEAS THAILAND COMPANY “ S ” GEMOPOLIS FREE ZONE COMPANY “ C ” 1 OTHERS PRIVILEGE - BOI - BONDED WAREHOUSE - CUSTOMS FZ I-EA-T Free Zone 1 1 1 1 = No VAT No Duty COMPANY “LOCAL” 1

9. OVERSEAS THAILAND COMPANY “ S ” GEMOPOLIS FREE ZONE OTHERS PRIVILEGE - BOI - BONDED WAREHOUSE - CUSTOMS FZ I-EA-T Free Zone 1 1 1 2 1 2 = No VAT No Duty = Duty + VAT COMPANY “LOCAL” 3 Local Distribution

10. 3 Sorting OVERSEAS THAILAND GEMOPOLIS FREE ZONE COMPANY “LOCAL” COMPANY “LOCAL” COMPANY “ S ” COMPANY “ C ” 1 1 2 = No VAT No Duty = Duty + VAT 1 2 1

11. Free Trade Agreement THAILAND Thai-Aus Effective 2005 Thai-China Thai-NZ Effective 2005 Thai-India Reducing to 0% Sep 2006 Thai-Peru Effective 2010 Thai-Japan Effective 2009

12. Local Content FTA / Local Content OVERSEAS THAILAND GEMOPOLIS FREE ZONE COMPANY “ S ” COMPANY “ C ” 1 1 1 = No VAT No Duty COMPANY “LOCAL” 1 Local Content OTHERS PRIVILEGE 1

13. Local Value Added Content FTALocal Content THAI - INDIA 20 % THAI - AUSTRALIA 40 – 45 % THAI - NEW ZEALAND 40 – 45 % THAI - JAPAN 40 %

14. Local Value Added Content Material Wages Management and Marketing Cost Utilities Cost Profit

15. GEMOPOLIS FREE ZONE + Imported Local 80% 100% Export WagesProfit Material Others Cost 20% Local Value Added Content Thai-India

16. FTA Rules of Origins (RoO) Wholly Obtained Substantial Transformation Local Content THAI - INDIA ITFTA CTSH 20 % THAI - AUSTRALI A TAFTA CTH 40 – 45 % THAI - NEW ZEALAND TNZCEP CTH 40 – 45 % THAI - CHINA THAI - JAPAN JTEPA CTC+LC 40 % Local Value Added Content

17. Free Trade AgreementTHAILAND Thai-Aus Effective 2005 Thai-China Thai-NZ Effective 2005 Thai-India Reducing to 0% Sep 2006 Thai-Peru Effective 2010 Thai-Japan Effective 2009 ASEAN-Aus-NZ Effective 2010 ASEAN + 3 ASEAN + 6 ASEAN - China ASEAN - Korea ASEAN - Japan ASEAN - India