Recent Updates on Myanmar Trademark Registration

The New Trademark Application under the old Registration System is still accepting
Currently, the Registration of Deeds Office is still accepting the filing of new trademarks during the soft opening period under the Old Trademark Registration System. When the new Trademark Law comes into force, accepting the filing of new trademarks will be stopped by issuing the notice from the Ministry of Commerce (MOC).
Please be notified that the filing of the new trademark system is slightly changed with the previous filing system. But the timeframe of filing is two weeks as previously.
Firstly, the application must be submitted from 2 pm to 4 pm during the working days. Secondly, officer will inform the applicant of the trademark about the filing date via phone and at that stage; trademark registration process will start. Thirdly, the certificate of the Declaration of Ownership of Trademark will be issued from the Registration of Deeds Office after two weeks from the filing date.

Re-filing Registered Trademarks under the New Trademark Law 2019
The re-filing of old trademarks registration during the Soft Opening Period is still effective before the Trademark Law comes into force.
The Ministry of Commerce, Intellectual Property Department held the meeting about the presentation on the official filing fees and clarified the ongoing work plans of the department in Nay Pyi Taw on 24th May 2021. The Ministry of Commerce may announce related to the official filing fees and POA when the Law effect.
Union Minister of the Ministry of Commerce informs that the Head Office of the IP Department may be in Nay Pyi Taw and the branches may be in Yangon and Mandalay.

Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Htar Su May
Paralegal
Htar@ilawasia.com
ILAWASIA Co., Ltd.


Digest on New Cambodian Tax and Corporate Laws

Taxation
“Notification No. 8716 GDT, dated 18 May 2021, on the Date of Submitting U.S. Reportable Accounts for the Calendar Year 2020 of the Banks, Insurers and Financial Institutions”
Based on this Notification, the Cambodian General Department of Taxation requires all commercial banks, insurance enterprises and financial institutions, who fall under the reporting obligations of the agreement entered into between the Royal Government of Cambodia and the United States, to better international tax compliance, as well as to comply with the Foreign Account Tax Compliance Act (FATCA) of the United States of America, all banks, insurance enterprise and financial institutions are required to submit U.S. reportable accounts for the calendar year 2020 to the U.S. Internal Revenue Service-IRS through the General Department of Taxation within 30 July 2021. Additionally, the report shall follow IRS’s standard.
Failure to report, banks, insurance enterprises and financial institutions will risk being penalized by FATCA, agreement entered into between Cambodia and the United States, as well as this Notification.

Corporate and Commercial
❶ “Notification No. 1143 of 26 May 2021, issued by the Ministry of Commerce, on the Issuance of E-Commerce Permit or License”
Cambodian Ministry of Commerce, on 26 May 2021, issued a Notification requiring all individuals and legal entities, including foreign entities, doing business in e-commerce spheres to apply for e-commerce permits and licenses with the Department of Commercial Registration of the General Department of Commercial Services of the Ministry of Commerce.
E-Commerce license and permit is regulated by the Department of Commercial Registration, General Department of Commercial Services. Application could be done through website: www.ecommercelicensing.moc.gov.kh. Any individual or legal entity doing business in e-commerce without permit or license will be financially penalized based on the relevant regulation.

❷ “Ministerial Prakas No. 316, dated 12 May 2021, on Financial Penalties under the Supervision of the Ministry of Commerce”
On 12 May 2021, the Ministry of Economy and Finance and the Ministry of Commerce jointly issued an Inter-Ministerial Prakas, regarding the financial penalties under the supervision of the Ministry of Commerce. The financial penalties are imposed based the Law on Commercial Rules and Commercial Registers, Law on Trade Marks, Trade Names and Acts of Unfair Competition, Law on Commercial Enterprises and Law on 
E-Commerce and other regulations being in force in the Kingdom of Cambodia.
The amount of penalties are as the following:

Description of Breach Amount of 
Financial Penalty (in Khmer Riels) Amount of Financial Penalty (in US Dollars) *
Failure to register in any amendment at the Ministry of Commerce 1,000,000 247
Failure to file annual declaration of commercial enterprise 2,000,000 494
Providing false information and faking other required documents to register company 1,000,000 247
Operating e-commerce business without license or permit 10,000,000 2,468
Providing false information on the report, minutes or other documents of the company which need to be filed with the Ministry of Commerce 2,000,000 494
Failure to submit copy of financial report to be filed with the Ministry of Commerce 2,000,000 494
More than 6-month late application to re-register mark 200,000 50

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Vicheka Lay
Partner
Vicheka.Lay@ilawasia.com
ILAWASIA Co., Ltd.

Huyching Cheang
Associate
Huyching.C@ilawasia.com
ILAWASIA Co., Ltd.


LEGAL 500: FIRMS IN THE SPOTLIGHT

ILAWASIA is prouded to be named as one of the FIRMS IN THE SPOTLIGHT for Myanmar, Cambodia and Laos in the Legal 500.

🏆 Myanmar : ILAW MYANMAR CO., LTD.
🏆 Cambodia : I.L ASIA CO., LTD.
🏆 Laos : ILAW LAOS CO., LTD.

For 33 years, The Legal 500 has been analysing the capabilities of law firms across the world, with a comprehensive research programme revised and updated every year to bring the most up-to-date vision of the global legal market.

Find more information on this link https://bit.ly/3tVpbWx


Myanmar imposed a ban on products not allowed to import through the border areas

In Brief
Myanmar has imposed a ban on the products from other countries, including Thailand through the border areas. The announcement of Customs Department, Ministry of Planning and Finance and Industry (No.1-TaKa (OSS)/2021(3)) issued on 19 April 2021, and the Announcement of Trade Department, Ministry of Commerce (No.2020-2021 (0607) issued on 18 April 2021, and other relevant announcements of Trade Department have been issued to impose four kinds of products that are prohibited to import to Myanmar, comprising of:

1) All kind of soft drinks;
2) All types of coffee mix and tea mix;
3) instant coffee; and
4) Sweetened condensed milk/raw milk.

This regulation will be effective on May 1, 2021 and enforced to the importation through Thai-Myanmar border checkpoints, including 1) Myawaddy; 2) Tachileik; and 3) Kawthaung. However, importation by seaborne routes and by air are still allowed, but there may be increasing of the relevant costs.

Exceptional
There is exceptional condition in case that you import the products by sea instead of land importation. The following list of import documentations have to be prepared to present at the customs checkpoint:

No. Documents
1. Proforma Invoice
2. Packing List
3. Sale Contract
4. DO/BL
5. Import License/Import Permit
6. Other necessary documents

Our opinions
The Announcements have been issued and administrated under the Military Council. Therefore, it is believed that these Announcements are linked to the political crisis in Myanmar. Most Myanmar people started to boycott the purchase of goods from junta-linked companies that seized power on February 1, 2021 to overthrow the Civilian Government.

Although importation by sea is allowed, Burmese and foreign Traders estimate that the closure of seaborne routes would make difficulties to importation and destabilize the food market.
As the case maybe, the military council’s restrictions on border trade have led to a return to the black market; some border traders also said that corruption could occur. Presently, Chinese products are not used in the country that supports the coup government. Campaigns are underway not to buy.

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Htar Su May
Paralegal
Htar@ilawasia.com
ILAWASIA Co., Ltd.

Jessupa Na Pomphet
Associate
Jessupa.N@ilawasia.com
ILAWASIA Co., Ltd.


Further Updates on Fast-track Examination of Thai Trademark Prosecution and Continuous

In Brief
On April 5, 2021, The Department of Intellectual Property (DIP) has announced 1) Notification regarding the criteria of fast track examination for trademark registration application which repealed the previous Notification issued on February 23, 2021; and 2) Notification regarding the criteria of fast track examination for trademark renewal application.
The Notification initiated a new fast-track system for trademark prosecution and continuous, which reduced the timeframe for examination of a trademark application and shortened the issuance of a trademark renewal certificate. The purpose is to lift up service level, and facilitate transaction for the private sector and regular people, as well as contribute positive factors for trademark business.

Key Takeaways
A. Trademark Prosecution
Generally, the registrar takes 16 months for the examination and issuance of the registration certificate, no matter how much of the quantity of the item of goods/services it is. However, under the fast-track system, the registrar will take only 6 months for the procedures if the items of goods/services will not exceed 10 items and these items conform with the specification of goods/services, shown in the website of DIP (https://tmsearch.ipthailand.go.th). Below is the comparative between the usual and the recent updates on trademark registration.

Matters Usual Recent Updates
Time for Approval 16-months 6-months
Official Fees
  • 1,000 Baht charges per item of goods/ services for 1-5 items of goods/services.
  • 9,000 Baht charges as a lump sum for more than 5 items of goods/services.
Remain the same.
Quantity 1 item of goods/services or more Not exceed 10 items.
Conditions for Fast-Track Examination These items conform with the specification of goods/services, shown in the website of DIP.

Key Takeaways (cont.)
B. Trademark Renewal
Generally, the registrar takes 3-6 months for the examination and issuance of the renewal certificate, no matter how much of the quantity of the item of goods/services it is. However, under the fast-track system, the registrar will take only 60 minutes for the procedures if the items of goods/services will not exceed 30 items and an amendment of the specification of goods/services will not be filed. Below is the comparative between the usual and the recent updates on trademark renewal.

Matters Usual Recent Updates
Time for Approval 3 to 6 months 60 minutes
Official Fees
  • 2,000 Baht charges per item of goods/ services for 1-5 items of goods/services.
  • 18,000 Baht charges as a lump sum for more than 5 items of goods/services.
Remain the same.
Quantity 1 item of goods/services or more. Not exceed 30 items.
Conditions for Fast-Track Examination
  • No changes may have been made to the details of the registration
  • The application must be submitted by the owner or an appointed attorney;
  • The Power of Attorney must clearly authorize appointed attorney to file the renewal application and collect the certificate on behalf of the owner’s; and
  • Applicants must request the fast-track examination when submitting renewal applications.
  • Fully-paid the official fee.
  • In case there will be an incomplete on the trademark renewal application, but it is able to revise within the date of filing, the registrar can order and approve the renewal on its filing date. However, if it is unable to review on its filing date, the registrar can consider within the timeframe as mentioned in the manual guide issued under the Licensing Facilitation Act, B.E. 2558, which is generated to public.

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.


An Emergency Decree Amended Interest Rate in Thailand

In Brief
On April 10, 2021, New Emergency Decree which amended the Civil and Commercial Code on the reduction of default interest rates has been published in the Government Gazette and it shall be effective on April 11, 2021.
The purpose of the Emergency Decree is aiming to 1) prevent loopholes caused by ambiguity in the previous provision that allowed creditors to charge unfair interest rates which had been enforced since A.D. 1925 (B.E. 2468) that is not practically aligned with the current economic situation; and 2) relief the effect of Covid-19 pandemic that caused widespread damage to businesses, SMEs, and entrepreneurs to handle the obligations and debts’ payment during the economic crisis and to reduce economic inequality and unfairness.
Key Takeaways
The essential changes of the amendment are 1) to repeal the previous Section 7, 224 and replaced with new statements; and 2) to add remark provision on Section 224/1 of the Civil and Commercial Code, as summarized by the table below:
A. Section 7 : Standard Interest Rate that is neither predetermined nor required by law

Previously After 11 April 2021 Remark
7.5 per cent per annum Decrease to 3 per cent per annum To be reviewed every 3-years by the Ministry of Finance, and compared to close with deposit interest rate and loan interest rate of commercial banks

B. Section 224 : Default Interest Rate

Previously After 11 April 2021 Remark
7.5 per cent per annum
    • 3 percent perannum, as prescribed in Section 7;
    • Add-on 2 percent per annum
  • The creditor is able to demand higher interest on any other legitimate grounds;
  • Interest for default shall not be paid upon interest.

C. Section 224/1 : Installment Payment of Default Interest Rate

Additional provisions Result
1. A Debtor who fails to make installment payment at any dues. The creditor is able to calculate the default interest only from the principal of the installment in which the debtor has defaulted. The creditor will no longer be able to collect default interest on the total principal amount of the debts that have not been paid.
2. Any clause of agreements is contrary to the above provision. Such an agreement will be void.

Conclusions
In the past period, many creditors have forced debtors who failed to make a payment, to pay interest on top of the principal amount owed, as the repealed provision of law did not set a default rate. Thus, this new decree entitled to decrease the interest rate to be applied with the current world situation and economic trends.
However, the new interest rate under this decree shall only be applicable for the Interest and Default Interest calculation of the debt or the installment payment of which is due from the effective date of the decree.

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Nannapas Phatcharakeatkanok
Associate
Nannapas.P@ilawasia.com
ILAWASIA Co., Ltd.

Chananya Yongmunkongkul
Associate
Chananya.Y@ilawasia.com
ILAWASIA Co., Ltd.


Timeframe Updates for Thai Trademark Prosecution and Continuous

In brief
On February 23, 2021, The Department of Intellectual Property (DIP) has announced the notification regarding the criteria of fast track examination for trademark registration application and trademark renewal application.
The Notification initiated a new fast-track system for trademark prosecution and continuous, which reduced the timeframe for examination of a trademark application and shortened the issuance of a trademark renewal certificate. The purpose is to lift up service level, and facilitate transaction for the private sector and regular people, as well as contribute positive factors for trademark business.

Key takeaways
A. Trademark Prosecution
Generally, the registrar takes 16 months for the examination and issuance of the registration certificate, no matter how much of the quantity of the item of goods/services it is. However, under the fast-track system, the registrar will take only 6 months for the procedures if the items of goods/services will not exceed 30 items and these items conform with the specification of goods/services, shown in the website of DIP (https://tmsearch.ipthailand.go.th). Below is the comparative between the usual and the recent updates on trademark registration.

Matters Usual Recent Updates
Time for Approval 16-months 6-months
Official Fees
  • 1,000 Baht charges per item of goods/services for 1-5 items of goods/services.
  • 9,000 Baht charges as a lump sum for more than 5 items of goods/services.
Remain the same
Quantity 1 item of goods/services or more Not exceed 30 items
Conditions for Fast-Track Examination These items conform with the specification of goods, shown in the website of DIP (https://tmsearch.ipthailand.go.th)

B.Trademark Renewal
Generally, the registrar takes 3-6 months for the examination and issuance of the renewal certificate, no matter how much of the quantity of the item of goods/services it is. However, under the fast-track system, the registrar will take only 45 minutes for the procedures if the items of goods/services will not exceed 30 items and an amendment of the specification of goods/services will not be filed. Below is the comparative between the usual and the recent updates on trademark renewal.

Matters Usual Recent Updates
Time for Approval 3 to 6 months 45 minutes
Official Fees
  • 2,000 Baht charges per item of goods/services for 1-5 items of goods/services.
  • 18,000 Baht charges as a lump sum for more than 5 items of goods/services.
Remain the same
Quantity 1 item of goods/services or more Not exceed 30 items
Conditions
  • No changes must have been made to the details of the registration.
  • The application must be submitted by the owner or an appointed attorney;
  • The Power of Attorney must clearly authorize appointed attorney to file the renewal application and collect the certificate on behalf of the owner’s; and
  • Applicants must request the fast-track examination when submitting renewal applications.
  • Fully-paid the official fee.
  • In case there will be an incomplete on the trademark renewal application, but it is able to revise within the date of filing, the registrar can order and approve the renewal on its filing date. However, if it is unable to review on its filing date, the registrar can consider within the timeframe as mentioned in the manual guide issued under the Licensing Facilitation Act, B.E. 2558, which is generated to public.

Should you have any further inquiries or require any assistance, please let us know.

Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.


Recent Updates on Processual and Implementation for Registration of Cosmetic Products in Lao PDR

Overview
The importers must have a business license and their business category must be shown that the importers are operating the cosmetics business activity. Then, the importers have to prepare the documents base on Article 11 in Registration of cosmetic products and guideline.
After that, the importers have to submit the documents to the Drug Division, Department of Food and Drug, Ministry of Health. The processes will take two weeks as mentioned in the Standard Operating Procedure (SOP) of the Drug Division.

Registration of Cosmetic Products
A. The mandatary documents are as follows:

  1. Application form.
  2. The request letter with the following mandatary document:
    • Product Information File Part 1 (PIF Part 1) or the proof of safety products provided by the manufactory or the product owner including:
      • Formulation;
      • Authorization Letter,
      • Certificate of Free Sale;
      • Certificate of Notification;
      • Certificate of Analysis;
      • GMP;
      • Labels and Batch Coding System;
      • Claim Support Summary;
      • Undesirable Health Effects Summary;
      • Safety Assessment Summary; and
      • The Model Product.
      • Receipt

B. The fee for registration of cosmetic products is at 150,000 Kip for one product.

Recent Updates
On 15-17 March 2021, Ministry of Health held the meeting to discuss regarding to the management of cosmetic products in Lao market and disseminate the Electronic Notification System.
In this regards, Ms. Viengsamai SyLuexay, the Director of Drug, Chemist and Cosmetic Administrative Division, said that the advantages of the Electric Notification System is a good way to help the entrepreneurs submit the document without any risk of losing the documents and their can be check any time.

Initiation of an Implementation
Before getting the registration of cosmetic products, the entrepreneurs must prepare the following documents: 1) Business License; 2) Authorization Letter; 3) Personal data; and 4) Picture of the Product; to register at the Department of Food and Drug via email address at: cosmeticfdd@cpnp.gov.la ; And when the registration has been successfully registered, the entrepreneurs will get the confirmation by email.
Next step, the entrepreneurs have to register the cosmetic products at the Electronic Notification System via www.moh.gov.la with the following documents: 1) ACD Form; 
2) Ingredient.csv; 3) Claim Support Summary; 4) Undesirable Health Effects Summary; and 5) Assessment Summary.
Then, the officer will send the receipt for registration of cosmetic products to the entrepreneurs. And if your registration is approved, the officer will send you the List of Template for Notification of Cosmetic Products but if it is get decline, the Letter of Disapproval will be sent to the entrepreneurs accordingly.

Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Viphavanh Syharath
Associate
Viphavanh.S@ilawasia.com
ILAWASIA Co., Ltd.

Vanisha Chaidee
Associate
Vanisha.C@ilawasia.com
ILAWASIA Co., Ltd.


Myanmar Coming to Crossroads

 Overview
There has been attempting of forming sovereignty in Myanmar by separating of powers into two main powers. The first side is illegal government settled by the military coup; and another side is the group of people who take sides with the previous government elected by the citizen, named Committee Representing Pyidaungsu Hluttaw (CRPH).
There are numerous announcements issued by both sides.
1. Illegal junta issued specially on martial law titled Hlaing Tharyar Township on March 14, 2021. Myawaddy TV broadcasts that the military council has declared martial law in Hlaing Tharyar, South Dagon, North Dagon, Dagon Seikan and North Okkalapa townships in Yangon on March 15, 2021.
2. Democratically elected government issued both political and economics announcements.

Current Situations
1. Destroying of properties: At least three Chinese factories in Yangon are burned. Embassy of China has called for action on burning of these Chinese factories in Myanmar.
2. Closing of operation: The private banks are still closing for the officer safety. Most of the staffs are also absent and taking leave from work without salary.
3. Civil Disobedience Movement (CDM): The government officers have been participated in the Movement. Therefore, the government operations have still been suspended.
4. Communication: Internet signal and access are restricted for almost 30 days and cut off from 1am to 9am. Telephone internet lines are not available. Cable internet lines will also cut off soon.

Conclusion
There are “UN’s Statements” which were issued to denounce the violence in Myanmar and call for the restoration of democracy. Nevertheless, most of Myanmar citizen still perceive that this action of the UN seems not actually lessen the ongoing brutality and severity there. The protestors in Myanmar recognize that they have the right to defense themselves and call for democracy and justice. It has been predicted that the local war will probably occur in the near future and the situation could be the long-term fight during the military regime to hand back the power to the citizen.

Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Htar Su May
Paralegal
Htar@ilawasia.com
ILAWASIA Co., Ltd.

Jessupa Na Pomphet
Associate
Jessupa.N@ilawasia.com
ILAWASIA Co., Ltd.


Implementation of Lao National Single Window platform (LNSW) to manage businesses

In brief
The Cabinet Office of the Ministry of Finance has issued an additional the Notification number 0163/CO, dated 27 January 2021, Subject: Application of LNSW platform (Lao National Single Window) to manage on import of the goods at Friendship Bridge 1 International Customs Border Checkpoint.
This Notification was issued in order to modernize customs activities, centralize, ensure the effectiveness and smoothness of the use of LNSW platform for importation of all the goods under exemption or suspension of customs duties and other obligations.

Key takeaways
Importers and exporters are assigned to pay customs, duties, and fees in one single point by following details:

 

Matters Details
Relevant agencies LNSW Co., Ltd is assigned to collect customs, tax, and service fees.
Official fees 120,000 Kip (One Hundred and Twenty Thousand Kip) for one transaction,
which excludes customs, duties, tax, fees and service fees of relevant agencies.
Payment channels and methods Bank Pour Le Commerce Exterieur Lao (BCEL) service unites; and Lao Development Bank (LDB) which includes BCEL i-Banking, BCEL One LDB Corporate Banking by cash, money transfer, and cheque.
Starting date 23 February 2021 onwards.

This is to notify all relevant sectors to acknowledge and ensure strict and productive implementation of this notification.

Yours sincerely,

Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.

Viphavanh Syharath
Associate
Viphavanh.S@ilawasia.com
ILAWASIA Co., Ltd.

Vanisha Chaidee
Associate
Vanisha.C@ilawasia.com
ILAWASIA Co., Ltd.