LEGAL 500: FIRMS IN THE SPOTLIGHT
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🏆 Myanmar : ILAW MYANMAR CO., LTD.
🏆 Cambodia : I.L ASIA CO., LTD.
🏆 Laos : ILAW LAOS CO., LTD.
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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 |
|
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 |
|
Remain the same. |
| Quantity | 1 item of goods/services or more. | Not exceed 30 items. |
| Conditions for Fast-Track Examination |
|
|
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 |
|
|
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 |
|
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 |
|
Remain the same |
| Quantity | 1 item of goods/services or more | Not exceed 30 items |
| Conditions |
|
|
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:
- Application form.
- 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
- Product Information File Part 1 (PIF Part 1) or the proof of safety products provided by the manufactory or the product owner including:
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.
How current political situation in Myanmar effected to business and economy system?
The new regime
The Office of the President released Order Number (1/2021) on 1st February 2021 declaring the State of Emergency and the emergency declaration shall remain in force for one year, effective from 1st February 2021 according to Article 417 of the Constitution of the Republic of the Union of Myanmar.
There are various orders, announcements and notifications issued and appeared in the Global New Light of Myanmar (2nd and 3rd February 2021), leading to the establishing of the new regime in Myanmar.
Most of the judges of the Supreme Court and the High Courts of the Regions and States were reappointed and the ruling junta reappointed the new ministers at the relevant government office.
Therefore, some process will not be performed stably. The journalists described that the situation as thousands protest against the military.
Shortage of fuel in the next two months
Myanmar has only two months usage for gas. Imports of fuel (gas & oil) have been suspended and trade and banking have been suspended as the anti-military uprising, which has been raging since the Myanmar military overthrew the legitimate federal government and continues to this day.
Gasoline traders are estimate that oil, which accounts for 98 percent of domestic demand, is the main importer and that there will be a shortage of fuel in the next two months, according to traders.
No more oil tankers arrived. Puma Energy was shut down on 10th February 2021, the trade was suspended until the banks reopened because oil importers could no longer pay their bills due to the closure of all banks.
All banking services have been shut down
All banking services have been shut down, and customs and trade offices can no longer operate on import duties and permits.
Myanmar's economy as a whole has stagnated and departmental offices are running low. Coup administration; the strong impact of the Civil Disobedience Movement (CDM), which is being led by millions of Myanmar people, to shut down all economic mechanisms.
Economic outlook
Amata Corporation, a Thai industrial zone developer, has announced that it will slow down its investment in the industrial zone in Yangon. A senior associated of the company officer told the press online that the current investment of more than 4.5 million will be slowed down.
According to Myanmar’s politics situation, THE MYANMAR TIMES issue the announcement that journals, websites and pages were suspend for three months. Moreover, private banking and most of the government officer participated in Civil Disobedience Movement. As a result, there have been delayed in financial operations in Myanmar.
Risk and difficulties
Due to the changing of enacted laws, reappointment, and administration of ministers since 1st February 2021, there are many ongoing processes with the government authorities have been suspended and most of the government officers have been participating in Civil Disobedience Moment (CDM). Therefore, investors who liaise with the government sectors and the investors who wish to invest in Myanmar are facing many difficulties in communicating with relevant government authorities.
As a result, other processes related to the government would not be able to proceed, apart from online services for some cases. Although the internet system can be used and accessed in limited time, this drawback has still been affecting telecommunication business and some businesses which need to use and rely on internet.
Moreover, the export and import businesses can also be severely affected due to transportation. The cost of foods, fuel and consumer goods will be more pricing, expensive, and scarce.
Thus, under this circumstance, the lack of Rule of Law in country can cause interruption to foreign investment in aspect that the investors may reduce their investments and the remaining investors may also stop their investments in the country later. The employment opportunities will be decreased constantly. Consequently, if there is nothing better, these could be the major
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
Htar@ilawasia.com
Paralegal
ILAWASIA Co., Ltd.
Jessupa Na Pomphet
Associate
Jessupa.N@ilawasia.com
ILAWASIA Co., Ltd.
Vanisha Chaidee
Associate
Vanisha.C@ilawasia.com
ILAWASIA Co., Ltd.
Updates on Amendments to Thai Copyright Act
A. Latest Process
On September 29, 2020, the Thai Cabinet approved a draft amendment of the Copyright Act to National which has been reviewed by Council of States and submitted Assembly. The House of Representatives of the National Assembly of Thailand has been accepted the principles of the draft amendment of the Copyright Act at the first reading on January 27, 2021. The proposed of an amendment shall be reviewed within 7 days by Select Committee.
Recently, the Select Committee has been appointed the head and other internal positions to consider the draft amendment on January 29, 2021; the second and third meeting was also held on February 3, 2021 and February 10, 2021 respectively.
Key Takeaways
A. Added the definition of “Service Providers” and “Service User” and revised the definition of Technology Protection Measure”
B. Expanded the definition of “service providers”.
The draft amendment defined “Service Providers” as to include an intermediary service provider; a temporary computer data storage service provider; a computer data storage service provider; and a computer data locating service provider.
C. Limited liability of service providers.
Service providers shall be limited liability of copyright infringement as of their services. They must be service providers who announced the cancellation of services for a service consumer who clearly infringes copyright and follows the announced measure. Service providers must provide any of the following services.
- To be provided an intermediary service to transmit computer data through the automatic technic processing that not be an originator who transmit or select a computer data receiver and not alter the content of the said computer data.
- To be provided a temporary computer data storage service which does not alter the content of the said computer data, nor intervene by using technology to obtain information data of a service user, and have a system to keep computer data up-to-date.
- To be provided a computer data storage service that do not know, or have no reasonable cause to know that there is a computer data has infringed copyright on the system or computer network used and immediately remove such data out of the system or computer network or restrict the access to the said data when they know or receive a notification.
- To be provided a computer data locating service provider that do not know, or have no reasonable cause to know that there is a computer data has infringed copyright and immediately remove reference sources or access points to such data out of the system or computer network or restrict the access to the said data when they know or receive a notification.
D. Copyright infringement claims.
The draft amendment aims to protect manufacturers and vendors of devices used for hacking and to boost efficiency in restraining intellectual property violations on the internet and encourage the confidence for copyright owner.
Copyright owners can send a request to internet service providers (ISPs) to remove infringed online materials of copyright from websites without having time-consuming of court proceedings.
Moreover, copyright owners can send notices to such ISPs. After the notices are verified, ISPs have to remove pirated materials and inform the removal to those who posted.
In case of the infringed materials or contents is hosted in overseas, the copyright owner must file the petition to the court. The case will be taken to the court to order the suppression notice to such piracies.
E. Protection of photographic works.
The draft amendment aims to enlarge the protection on photographic work for the lifetime of the creator and for 50 years after his/her death.
F. Protection of audiovisual works, cinematographic works, and sound recordings or broadcastings.
The duration for copyright protection of a work in the form of audiovisual, cinematographic, and sound recordings or broadcastings will be 50 years from the date of creation. However, if such work has advertised during the said period, the protection shall be 50 years from the first advertised.
G. Compliances
This motivation of revision to the Copyright Act shall also make Thailand comply with the WIPO Copyright Treaty (WCT) and increase efficiency for protecting copyright modernizing of the changing of digital technology, including the improvement of the provision of the limited liability of service providers.
What’s next?
The Bill is currently being considered by the Select Committee and expected to be proposed to the House of Representatives for the Second Reading in approximately two months. We will continue to closely monitor and provide following updates on progress.
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.
