New Draft Bill for Cannabis and Hemp of Thailand
Since 9 June 2022, cannabis and hemp are no longer classified as narcotics under the Narcotics Code, which may lead to widespread possession, consumption, and use. This situation could have significant impact on public health, economy, and society.
To address these concerns and align with government policy, on 6 November 2024, the Ministry of Public Health has proposed the Cabinet, a new draft bill to regulate the cultivation, production, import, export, sale, and advertisement of cannabis, hemp, and their extracts (the “Draft Bill”). The Draft Bill is currently under review and consideration by the Cabinet.
KEY PROVISIONS OF THE DRAFT BILL
A. Licensing Requirements
The Draft Bill establishes that the cultivation, production, import, and sale of cannabis, hemp, and their extracts require licenses from the Director-General of the Department of Thai Traditional and Alternative Medicine.
The application for a license to cultivate cannabis or hemp will be categorized based on the size of the cultivation area:
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- Small area : Not exceeding 5 rai (approximately 1.98 acres)
- Medium area : More than 5 rai but not exceeding 20 rai (approximately 7.91 acres)
- Large area : More than 20 rai but not exceeding 400 rai (approximately 158.16 acres)
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In addition to a general license, the import and export of cannabis, hemp, and their extracts will require a specific permit for each transaction.
B. Exempt Activities
The Draft Bill exempts the following activities from licensing requirements:
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- The production, export, or sale of roots, branches, leaves, stems, or seeds of cannabis or hemp (excluding cannabis and hemp flowers).
- The prescription of cannabis, hemp, or their extracts for the treatment, care, alleviation of human ailments, or disease prevention by licensed medical practitioners, dentists, Thai traditional medical practitioners, applied Thai traditional medical practitioners, Chinese medicine practitioners, or folk medical practitioners, as defined under the laws on Thai traditional medical professions.
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C. Applicant Eligibility
Applicants for the licenses must not possess any prohibited characteristics as specified in the Draft Bill. In addition, the following eligibility criteria apply:
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- Individuals must be Thai nationals, of at least 20 years old, and residents of Thailand and has no prohibited characteristics under the law.
- Companies must be Thai nationality with its office in Thailand, with directors who are Thai nationals and of at least 20 years old and has no prohibited characteristics under the law.
- A community enterprise that is not a legal entity under the law on community enterprises with its representative who is Thai national and of at least 20 years old and has no prohibited characteristics under the law.
- The Thai Red Cross Society or a government agency with related responsibilities under the law.
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D. License Validity and Renewal
Licenses are valid for 3 years from the date of issuance and must be renewed before expiration.
E. Limitation on the Use of Cannabis, Hemp and Their Extracts
The Draft Bill prohibits any consumption of cannabis, hemp and their extracts, except the following cases:
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- Treatment, relieve of pain for human and prevention from diseases including the use for wellness under the control of licensed medical practitioners, dentists, Thai traditional medical practitioners, applied Thai traditional medical practitioners, Chinese medicine practitioners, or folk medical practitioners, as defined under the laws on Thai traditional medical professions;
- Research by government authorities, research for medical study, pharmaceutical study or science, medical pharmaceutical or science service, for the benefit of medical use, pharmaceutical use, Red-Cross use or academic use; and
- Production of herbal products, medical products, food products, cosmetic products or other products as specified by relevant laws and regulations.
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F. Fees
License fees will be determined by ministerial regulations issued by the Ministry of Public Health, subject to the maximum rates outlined in the annex to the Draft Bill. Fee amounts may vary based on the cultivation area, the quantities of cannabis, hemp or their extracts, or the size of the licensee’s business.
G. Advertisement
The Draft Bill prohibits the advertisement or marketing communication of cannabis flowers or resin, hemp flowers or resin, extracts, and tools or equipment related to cannabis smoking. Additionally, all other advertisements concerning cannabis, hemp, or their extracts must not be false, misleading, or exaggerated, nor support or encourage illegal or immoral actions.
CONCLUSION
In conclusion, the new Draft Bill offers a clearer regulatory framework for the cultivation, production, import, export, sale, and advertisement of cannabis, hemp, and their extracts, addressing significant gaps in the existing legislation. While the timeline for its enactment remains uncertain, the approval process by the Cabinet and Parliament is underway, with expectations that the new law could be in place by Q2 of 2025. Once enacted, this legislation will not only enhance legal clarity but also bolster the stability and growth potential of the cannabis and hemp industries in Thailand, creating a more secure environment for investors and entrepreneurs.
For businesses navigating these changes, ILAWASIA offers expert legal advice and regulatory support to help clients stay compliant and seize emerging opportunities in this dynamic sector. Let us be your trusted partner in ensuring your business thrives in the evolving legal landscape.
AUTHOR:
Tanadee Pantumkomon, Partner
Wachinorot Siladet, Associate
Phoomphop Rungsri, Associate
APAA 2024 Annual Conference
#APAA2024 We’re excited to join the Asian Patent Attorneys Association (APAA) 2024 annual conference in the vibrant city of Manila. A fantastic opportunity to connect with global IP leaders, share insights, and stay ahead of the curve in the world of intellectual property.
Stay tuned for updates as we make meaningful connections and explore the future of innovation! 💼📚
#ILAWASIA #Manila #IntellectualProperty #GlobalConnections #Innovation
ILAWASIA listed as ALB Fastest Growing Firms 2024.
“ILAWASIA Recognized as One of ALB’s Fastest Growing Firms 2024”
ILAWASIA Co., Ltd. is proud to be listed among the Fastest Growing Firms 2024 by Asian Legal Business (ALB). This recognition highlights our consistent growth, innovative approach, and unwavering commitment to delivering exceptional legal services across Southeast Asia.
The ALB Fast 30 list celebrates law firms that have significantly influenced the future of the legal industry in Asia, standing out as leaders in an increasingly competitive and dynamic market.
We extend our gratitude to our clients, partners, and dedicated team for their trust and contribution to this remarkable achievement. As we continue to expand and innovate, we remain committed to excellence in meeting the evolving needs of our clients in a dynamic legal landscape.
Source : https://www.legalbusinessonline.com/sites/default/files/e-magazines/ALB-ASIA-NOVEMBER-2024/
#ILAWASIA #ALB #ALBFast30 #FastestGrowingFirms2024 #AsianLegalBusiness #LegalExcellence #GlobalRecognition
A Notification of the Procedure for Employment of Foreign Labor in the Kingdom of Cambodia
Overview:
The Cambodian Labor Law, enacted on March 13, 1997, and amended in 2007, 2018, and 2021, requires foreign workers to obtain a work permit and employment card from the Ministry of Labour and Vocational Training (MLVT). On August 20, 2014, MLVT issued Prakas No. 196 on foreign labor employment, followed by Notification No. 022/24 ក.ប/ស.ជ.ណ.ម.ហ, on August 12, 2024,
Key Provisions:
1. The Procedure for Enterprise Establishment:
- – Firstly, the enterprise shall apply for a letter permit of employment for foreigner labour from the Ministry of Labour and Vocational Training, not more than 10% of the total number of Cambodian workers.
- – Secondly, registration of employment contract.
- – Lastly, apply for a foreigner work permit and foreigner employment card.
2. The Procedure for Foreigners:
- – Firstly, the foreigner shall request the owner or director of the enterprise to present a letter permit of employment for foreigner labour issued by the Ministry of Labour and Vocational Training
- – Secondly, the foreigner shall sign an employment contract with the owner or director of the enterprise establishment.
- – Lastly, apply for a foreigner work permit and foreigner employment card.
3. Documents require
Submit the application on www.fwcms.mlvt.gov.kh with a passport, recent patent tax certificate, health checkup certificate, and a 4×6 cm photo.
4. Penalty
Failure to apply for a work permit for the year 2025 within the deadline shall result in factories and enterprises being subject to a penalty of KHR 12,600,000 (about USD3,150) per person, in accordance with the No.106 in Annex 1of PraKas of Inter-Ministerial No. 498 dated 31 July 2023 on the Monetary Fine for those who Violate the Labour Law.
Conclusion:
In conclusion, the Cambodian Labor Law mandates that foreign workers obtain a work permit and employment card from the Ministry of Labour and Vocational Training (MLVT). The law outlines clear procedures for both employers and foreign workers, including documentation requirements and penalties for non-compliance, which may reach KHR 12,600,000 (approximately USD 3,150) per worker in 2025.
Once a foreigner obtains a work permit and employment card, a foreigner can apply for a work visa either at a Cambodian embassy abroad, online via www.evisa.gov.kh, or at Cambodia’s international borders. These regulations ensure adherence to labour standards and facilitate the integration of foreign labour in Cambodia.
Authors:
Vicheka Lay; and
Hort Lypheng
Contact Detail:
2025 Minimum Wage for Workers in Garment, Textile, Footwear, Travel Goods, and Bag Sectors under the Cambodian Minimum Wage Law
Overview:
Article 4 of the Law on Minimum Wage, enacted on July 6, 2018, states that the minimum wage is determined by a PraKas from the Minister of Labor. On September 20, 2024, the Ministry of Labour and Vocational Training (MLVT) issued Prakas No. 221/24 ក.ប/ប្រ.ក.ខ.ល on determining the minimum wage for workers in the garment, textile, footwear, travel goods, and bag sectors, which will be effective from January 1, 2025. Any conflicting provisions of this Prakas are void.
Key provisions:
The previous minimum wage was $202 per month for probationary workers and $204 for regular workers, according to PraKas No. 283/23 ក.ប/ប្រ.ក.ខ.ល issued on September 29, 2023. Recently, in accordance with the Article 2 of Prakas No. 221/24 issued on September 20, 2024, by MLVT, workers in the garment, textile, footwear, travel goods, and bag sectors, will receive the following minimum wages:
1- For probationary workers is at $206 per month. At the end of the probationary period and became a full-time worker, the minimum wage shall increase to $208 per month.
2- For regular workers, the pay rate is based on production level. If this results in a rate above the minimum wage, workers receive the higher amount. If it falls below the minimum wage, the employer must adjust pay to meet the minimum wage ($206 per month for probationary workers and $208 per month for regular workers).
Other benefits for workers in the garment, textile, footwear, travel goods and bag sectors remain unchanged, including a transportation or accommodation allowance of $7 per month, an attendance bonus of $10 per month, a meal allowance for overtime working of $0.50 or one free meal, and a seniority bonus of $2 to $11 per month for workers with 2 to 11 years of services.
Penalties:
Under Article 24 of the Law on Minimum Wage 2018, employers who commit any of the following violations can be fined up to 40,000,000(forty million) Riels:
- the wage must be at least equal to the minimum wage set by a PraKas of the Minister of Labor .
- any agreement, written or oral, requiring wages below the legal minimum is null and void .
- in subcontracting or wage-based work, skilled workers should earn at least the guaranteed minimum wage. Workers who paid by the quantity of product must be paid based on their actual output. If their earnings exceed the minimum wage, they receive the extra. If it’s less, the employer must top it up to meet the guaranteed minimum wage .
- all workers covered by this law must be paid equally for the same work, skills, and conditions, regardless of origin, gender, or age .
Conclusion:
In conclusion, Article 4 of the Law on Minimum Wage establishes that the minimum wage is determined by a PraKas from the Minister of Labor. As of September 20, 2024, the Ministry of Labour and Vocational Training has set new minimum wages for workers in the garment, textile, footwear, travel goods, and bag sectors, effective January 1, 2025. Probationary workers will earn $206 per month, increasing to $208 upon full-time status, while regular workers’ pay is based on production levels, with provisions to ensure it meets the minimum wage. Additional benefits for these workers remain unchanged, and strict penalties are imposed for violations of the minimum wage laws, emphasizing the importance of fair compensation regardless of a worker’s origin, gender, or age.
Article 4 of the Law on Minimum Wage 2018.
Ibid., Article 6 Paragraph 1.
Ibid., Article 7.
Ibid., Article 8.
Attendance at the Cambodian Trust Law Seminar
On October 11, 2024, Vicheka Lay delegated Hort Lypheng, attended a “Trust Law” seminar by AmCam Exchange and CamEd University
Training on E-Commerce Regulations and Operation
On October 23, 2024, Mr.Lay Vicheka as Vice-President of Kampot-Kep Provincial Chamber of Commerce, assigned Miss. Um Makara participates in the training program “Skills in Setting Up E-commerce Stores for Small and Medium Enterprises.”
The Cambodia Chamber of Commerce, in collaboration with Codingate Technology, organized a two-day training course focusing on “Skills in Setting Up an Online Shopping Store (E-commerce)” aimed at all traders, merchants, and members who own small and medium enterprises. At the event, His Excellency Oknha Nguon Meng Tech, Director General of the Cambodia Chamber of Commerce, stated at the opening ceremony that the event is being held under the auspices of Oknha Kith Meng.
The primary objective of this training course, hosted by the Cambodia Chamber of Commerce, is to equip business owners with essential digital technology knowledge, enabling them to thrive in the e-commerce market. Participants will benefit from expert-led sessions covering key topics such as setting up an e-commerce shop, digital marketing strategies, target customer identification, and the utilization of various automation tools for business optimization in today’s rapidly evolving digital landscape.
Please note that the aforementioned program takes place over two days, from October 23 to October 24, 2024, at the Cambodia Chamber of Commerce, with participation from more than 70 traders, businesspeople, and members from various provinces.
タイ、国際商標登録に対する現地登録証の発行を開始
ニュース速報：
タイ、国際商標登録に対する現地登録証の発行を開始
タイが2017年にマドリッド議定書に加盟して以来、国際商標登録（IR）の手続きはよりスムーズになりました。しかし、タイ商標局（TMO）の技術的な問題により、タイを指定した国際商標登録に対するタイでの登録証の発行が遅れていました。この度、タイ商標局はこの問題を解決し、タイを指定した国際商標登録に対する登録証の発行を開始しました。これにより、公的な認証を待っていたブランド所有者にとって大きな進展となりました。
長年、タイ商標局は世界知的所有権機関（WIPO）による登録許可の声明に基づき、タイでの登録証を発行することを約束していましたが、商品およびサービスの仕様に関する暫定的拒絶通報が原因で遅延していました。2024年8月時点でタイ商標局は技術的な問題を解決し、同年9月初旬から登録書の発行を開始しています。
タイ商標局は、まず2017年および2018年に提出されていた申請から未処理案件を処理しています。暫定的拒絶通報を受けなかった国際商標登録については順次登録証が発行されています。この進展により、長らくタイでの公的な登録証を待っていたブランド所有者にとって朗報となります。
今後の進展
タイ商標局が未処理案件に取り組む中で、特に暫定的拒絶通報を受けた国際商標登録指定を含むポートフォリオについては再確認されることをお勧めします。この進展は、タイにおける商標登録手続きにおける重要な変化を示しており、国際的な商標出願者にとって、より明確で効率的な保護が提供されることになります。
ブランド所有者は、これらの変更について最新の情報を確認し、ポートフォリオに関するサポートが必要な場合はご連絡ください。
著者
- Somphob Rodboon, Managing Partner
- Thanapha Phetkeereeskul, Senior Associate
- Gensei Ohama, Attorney-at-Law
- Contact us at JapanDesk@ilawasia.com
Instructions on the Procedure for Business Dissolution Permanently under the Tax Laws
On 17 September 2024, the General Department of Taxation, under the Ministry of Economy and Finance, issued an instruction on the procedure for business dissolution permanently. According to Paragraph 2 of Article 203 of the Law on Taxation 2023, “businesses must inform the tax administration within 15 days if there are changes to their address, format, name, business objective, transfer, dissolution, management structure, or the person in charge of tax affairs of the enterprise.”
I. Procedure for Application for Business Dissolution Permanently
1.) Application:
Taxpayers can apply for business dissolution permanently with one of the following options:
- Option 1: File the application at www.registrationservices.gov.kh. (Taxpayers can find more about the guidelines in the booklet “How to apply for changes in registration of the company or enterprise’s information.”)
- Option 2: Apply to the tax administration by completing the application for business dissolution permanently (Form 103) and must be signed by the governor, manager, owner, or a representative with a legal authorization letter, with the required documents attached. Taxpayers choosing this option can apply:
- •By the Electronic Tax Administration (GDT e-Administration) program:
- Step 1: Download the e-tax administration software from www.tax.gov.kh, select the e-tax services, and set-up this software on the taxpayer’s computer.
- Step 2: Use your existing account to access other General Department of Taxation systems or programs. If you don’t have an account, click “Create a new account” to register.
- Step 3: Select the type of applicant as a taxpayer or tax service agent.
- Step 4: Click on the menu “Create a new administrative letter”, then enter the information of the applicant, enter the subject “business dissolution permanently” and select “General Department of Taxation.”
- Step 5: Attach the administrative letter as a PDF format, check and verify the information, re-enter any details if needed, and click ‘Send’ to submit it to the General Department of Taxation. Taxpayers can print a receipt to track their documents. The officer will review the application and email approval or rejection through GDT e-Administration.
- • Or apply directly at the General Department of Taxation or a provincial tax branch.
- •By the Electronic Tax Administration (GDT e-Administration) program:
After submitting the application, the taxpayer will receive an acceptance letter from the tax administration. For enterprises not yet registered for tax or lacking updated information, taxpayers must apply for tax registration or apply to update their enterprise information before they can apply for business dissolution permanently.
2.) Required Documents
- • A letter of notification on business dissolution permanently.
- • An application of business dissolution permanently. (An application form of 103 can be downloaded from the official website of the General Department of Taxation, www.tax.gov.kh)
- • A receipt of stamp duty on legal documents on the closure of the company for 1,000,000 (one million) Riels. (For companies registered with the competent ministry)
II. Obligation of Taxpayers to Apply for Business Dissolution Permanently
- 1.To apply for permanent business closure, the taxpayer must first complete the accounting records, submit the monthly tax returns, and file the annual income tax return by the business’s final closure date.
- 2.Once the tax administration receives the application of business dissolution permanently, the taxpayer no longer needs to file monthly or annual tax returns. The business’s electronic tax management systems or services will be shut down, except for tax payment and tax debt payment services. Tax certificates, such as tax patent, tax registration certificates, or VAT certificates, incentives, and/or other enterprise permits issued by the General Department of Taxation, will be suspended indefinitely. The business will also be unable to issue tax or regular invoices for any transactions, including imports and exports.
III. Penalties for Non-Compliance under Tax Laws
Failure to register with the tax administration or to update registration information after receiving more than two warning letters from the tax administration results in a penalty of 5,000,000 (five million) Riels. In cases of double jeopardy under this act, offenders shall be punished by imprisonment from 1 (one) month to 1 (one) year and a fine ranging from 50,000,000 (fifty million) Riels to 100,000,000 (one hundred million) Riels.
Conclusion
In conclusion, the General Department of Taxation has established clear steps and strict requirements for permanent business closure. Businesses must apply within 15 days, either online or directly, with necessary documentation. Once approved, tax responsibilities and certifications are indefinitely suspended, ending all business transactions. The tax administration may inspect and audit the business per the tax audit guidelines, requiring full cooperation from taxpayers. Non-compliance can lead to heavy penalties and imprisonment, stressing the importance of following these rules.
The Establishment of National Committee for Intellectual Property Rights (NCIPR)
Overview:
On October 27, 2021, the Royal Government of Cambodia issued Sub-Decree No. 206 អនក្រ.បក, establishing the National Committee for Intellectual Property Rights (NCIPR). The NCIPR promotes national IP policies, enhances cooperation among ministries, organizes educational programs, and enforces IP laws according to Cambodia’s international commitments. It can also receive technical assistance from national and international partners. Sub-Decree No. 142 អនក្រ.បក from September 18, 2008, regarding the National Committee for Intellectual Property Management, is now null and void.
Key Provisions:
1. Committee Composition:
- The National Committee for Intellectual Property Right (NCIPR) is chaired by the Minister of Commerce.
- The permanent vice-chair is a Secretary of State from the Ministry of Commerce, who is essential to the committee’s continued operations.
- Additional vice-chairs include a Secretary of State from the Ministry of Economy and Finance, Ministry of Culture and Fine Arts, Ministry of Industry, Science, Technology & Innovation
- The committee includes representatives from various ministries, including the Council of Ministers, Interior, Foreign Affairs, Agriculture, Education, Environment, Information, Justice, Telecommunications, Health, Tourism, Women’s Affairs, and Labor.
2. Roles and Responsibilities:
- Act as the main coordinator for international cooperation on intellectual property (IP) with countries and organizations.
- Support the drafting and enforcement of IP laws and compliance with international treaties.
- Promote strong enforcement of IP laws to prevent infringement, unfair competition, and rights violations, including those related to genetic resources and cultural practices.
- Work on implementing the Nagoya Protocol for fair distribution of benefits from genetic resources.
3. Governance:
The committee meets at least once a year, with members attending by the chairman’s invitation. If the chairman is absent, a vice-chairman may lead. Meeting procedures are set by internal regulations. The committee is supported by a secretariat in the Department of Intellectual Property under the Ministry of Commerce, led by its director and including vice-chairmen and technical officers from relevant ministries.
4. Budget and Funding:
The committee’s operational funds come from the national budget, as outlined in the Ministry of Commerce’s annual budget. To fulfil its mandates effectively, the committee may also accept and manage funds from international cooperation and other legal sources.
Conclusion:
The National Committee for Intellectual Property Rights (NCIPR) was established under international agreements and national policies to play a key role in protecting intellectual property in Cambodia. It strengthens the legal framework, fosters innovation and creativity, and supports economic growth. By safeguarding the rights of inventors, creators, and businesses, the NCIPR helps create a more competitive and prosperous in Cambodia.
