You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

August 29, 2023

New Developments in Thailand’s Cannabis Law

Subscribe to Updates

Since the June 9, 2022, delisting of all parts of the cannabis plant according to the Narcotics Code, there has been an explosion of cannabis dispensaries operating in Thailand. The Department of Thai Traditional and Alternative Medicine (DTTAM) has issued more than 12,000 cannabis dispensary licenses to businesses in Thailand. A license allows a dispensary to sell cannabis flowers legally. In addition, the DTTAM requests the cooperation of dispensaries in submitting monthly reports about the sourcing, selling, and inventory of cannabis flowers. The DTTAM may suspend the selling license of dispensaries that fail to submit these reports.

Apart from the enforcement duties and administrative acts of the DTTAM, the enactment of the laws and regulations pertaining to cannabis seemed to be drastically winding down. One of the reasons was that Thailand had delays in the process of forming a new government following the general election of May 14, 2023. These delays dampened Thailand’s thriving cannabis industry.

In particular, the industry has concerns about the uncertainty of the nascent cannabis law. On August 11, 2023, the Narcotics Control Division of the Thai Food and Drug Administration (FDA) posted the Draft Regulation Re: Application for Approval and Approval for Manufacture, Importation, Exportation, Distribution or Possession of Narcotics under Category 5 (Extracts from Cannabis or Hemp Plants Only). This may be the first regulation that the newly formed government implements with regard to cannabis extracts. Unlike the DTTAM’s enforcement activities, the Thai FDA requests that a domestic manufacturer, importer, exporter, or seller of cannabis extracts apply for a license. The Thai FDA, as the authority, will consider granting a license only in the following cases:

  1. For medical benefits;
  2. For commercial or industrial benefits;
  3. For the benefit of medical or scientific analysis or research; and
  4. For use by the government for preventing and suppressing narcotics-related offenses.

Nonetheless, there is currently a restriction period of five years in place, limiting the importation of cannabis extract to cases 3 and 4 in the above list.

There are also some notable limitations for a legal entity applying for a license:

  • The entity must obtain corporate registration under Thai law;
  • The authorized signatories binding the legal entity (authorized directors) must have Thai nationality with an age of at least 20 years old;
  • If the entity is a limited company, it must have Thai shareholders holding at least 51% of the total number of shares; for legal entities in other categories at least two-thirds of the partners must be Thai nationals; and
  • The entity must have a physical office located in Thailand.

These limitations are likely to impact cannabis business operators engaging in the extraction of cannabis and the preparation of CBD/THC for both domestic and exportation purposes. If the regulation is implemented as written, business operators should review the structure of their legal entities carefully.

For more information, please contact Dr. Atthachai Homhuan, director of regulatory affairs, at atthachai.h@tilleke.

Related Professionals

Industries

Life Sciences

Practices

Regulatory Affairs

Location

RELATED INSIGHTS​ 

December 9, 2024
Cambodia’s Law on Seed Management and Plant Breeder’s Rights was enacted in 2008, but it was not until recently that new plant varieties could successfully be registered for protection in the country. Although the law has been in place for some time, recent developments confirmed the application process and a schedule of charges for the registration of new plant varieties. With these developments, breeders have been able to register their new plant varieties in Cambodia since March 1, 2024. Applicants for new plant variety protection must be Cambodian nationals, foreign nationals domiciled in Cambodia, or permanent residents of either a country that is a contracting party to the International Union for the Protection of New Varieties of Plants (UPOV) Convention or a country with which Cambodia has signed a memorandum of understanding on plant variety protection. Applicants can also claim a priority date from the first application for the same plant variety filed in any contracting party of the UPOV Convention within 12 months of the earliest application’s filing date. To be eligible for protection, new plant varieties must satisfy the following criteria: Novelty: A variety is considered “new” if, at the date of filing the application for new plant variety protection, it has not been sold, marketed, or otherwise disposed of others—by or with the consent of the breeder—for more than: One year for any plant variety in Cambodia; Six years for trees and vines or four years for all other plant varieties in countries besides Cambodia. Distinctiveness: A variety must be clearly distinguishable from any other existing varieties. Uniformity: A variety must be sufficiently uniform in its relevant characteristics. Stability: A variety must remain unchanged in its essential characteristics at the end of each cycle of propagation and in each generation. The last three criteria are often
Read More
December 4, 2024
On October 28, 2024, Indonesia officially amended its existing Patent Law when the president ratified Law Number 65 of 2024. This comprehensive update—the third such amendment in the history of Indonesia’s Patent Law—introduces several key changes that will significantly impact patent protection and application processes in Indonesia. Key highlights and changes are outlined below. Definition of Invention The new law broadens the definition of “invention” to explicitly include systems, methods, and uses. Additionally, the law introduces formal definitions for traditional knowledge and genetic resources. Patentability Criteria Notable changes include: Computer programs are now excluded, with an exception for computer-implemented inventions. Theories and methods in science and mathematics are added to the list of excluded inventions. Previous restrictions on new uses of existing products are removed. Grace Periods The grace periods for some patent-related actions have been adjusted: The grace period for disclosures has been extended to 12 months (from 6 months previously), providing inventors with more flexibility in filing patent applications after initial disclosure. A newly introduced item is the grace period for a conventional patent application claiming priority rights, which is 4 months after the 12-month filing deadline under the Paris Convention. The grace period for annuity payments is 6 months (from 12 months previously) with a fine for late payments of 100% of the annual fee payable. Patent Holder Rights and Obligations Patent holders can now grant permissions to enforce patents. There is a new requirement for patent holders to submit annual statements on patent implementation in Indonesia. Compulsory Licensing Significant changes to compulsory licensing include: Establishment of licenses based on the principle of expediency. Limitations on license scope and transferability. Prioritization of domestic market needs. New provisions for technical improvements and economic significance. Government Patent Exploitation The new law contains specific provisions for the government’s implementation
Read More
December 4, 2024
Thailand Legal Basics, a valuable primer for foreign investors, explores all aspects of living and doing business in Thailand. Written by specialists at Tilleke & Gibbins in Bangkok, it is the only comprehensive English-language guide to the Thai legal system with a focus on the concerns of foreign business and investment.
Read More
December 2, 2024
Kratom (Mitragyna speciosa) was once listed as a prohibited substance under the Narcotics Act. Kratom was then removed from the narcotics list in 2021 and is now regulated under the Kratom Plant Act B.E. 2565 (2022), which allows the trading, use, import, and export of kratom. Furthermore, the Ministry of Public Health has allowed the use of kratom in food and drink, food supplements, and herbal products. Anyone who wishes to launch kratom food or herbal products must first obtain a product license from the Thai Food and Drug Administration (FDA). On September 4, 2024, the Thai FDA announced guidelines specifically for powdered kratom leaves and kratom leaf extracts (using water or ethanol as solvents) as ingredients in food supplements. These guidelines aim to provide business operators with a clear framework for launching kratom-based food products in Thailand. Key points from these guidelines include: Raw material specifications and standards: Powdered kratom leaves and kratom leaf extracts must contain at least the prescribed amount of mitragynine (one of the primary active compounds in kratom) as a marker of quality. For example, mitragynine must account for at least 1% by mass for powdered kratom leaves. Food supplement specification and standards: Food supplements containing powdered kratom leaves or kratom leaf extracts must not have a dosage of over 0.2 mg/day of mitragynine (including 7-hydroxymitraglynine, which may occur naturally), or 1 mg/day for food supplements containing kratom extracts that use water as a solvent. Addition of 7-hydroxymitraglynine to food supplements is prohibited. Mitragynine content in food supplement products must not exceed the specified dosage limit. Additionally, the food supplement product must be in a ready-to-eat form (e.g., liquid, gel, tablet, or capsule). If powdered kratom leaves or kratom leaf extracts are to be used as ingredients in food categories other than food supplements,
Read More