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 7, 2020
Vietnam’s efforts against the outbreak of COVID-19 in the country have been largely successful, and despite two distinct spikes of local transmission, in both cases the spread was halted relatively quickly. As these complications from the COVID-19 pandemic have been playing out in Vietnam throughout 2020, it became clear that effective and strong enforcement of healthcare regulations, especially those related to disease control, was crucial. On September 28, 2020, the government of Vietnam took action on this by issuing Decree No. 117/2020/ND-CP (“Decree 117”), which provides penalties for administrative violations in the healthcare sector. Some provisions of Decree 117—mostly those related to disease control and epidemic situations—took effect immediately, with the remainder taking effect on November 15, 2020. The decree, which was based on a draft proposed by the Ministry of Health, replaced Decree No. 176/2013/ND-CP on the same matter. The main administrative penalties under Decree 117 are reprimands and fines. Depending on the severity of the violation, violators may also be subject to additional penalties such as suspension of a certificate of eligibility for pharmaceutical business (CEPB), a license for healthcare operation, or other licenses and practicing certificates for up to 24 months; confiscation of illegal items; suspension of operations for up to 24 months; or deportation. Furthermore, remedial measures such as forced return of illegal earnings, compulsory quarantine and medical examination, public correction, or compulsory payment of treatment fees may also be applied. Some key highlights of Decree 117 are discussed below. In relation to disease control, the maximum fine for failure to comply with quarantine is doubled to VND 20 million (USD 855) for infected people of type-A contagious diseases, and VND 10 million (USD 427) for those who are not infected but are asked to quarantine. Failure to declare one’s contagious disease to a doctor
Read More
November 30, 2020
Vietnamese cuisine has a growing reputation internationally, and a visit to Vietnam will quickly reveal that food plays a very important role in the country’s identity and culture, as well as its economy. More than 80% of the population makes a living through some form of agriculture, and approximately 35% of household income in Vietnam is spent on food and beverages. As food is the most essential of necessities, and thus the first priority in household spending, this percentage tends to be high in developing countries, declining as incomes rise.
Read More
November 17, 2020
The Thailand updates to Practical Law’s Life Sciences Global Guide  have been released online, with legal practitioners from Tilleke & Gibbins contributing the Pharmaceutical Intellectual Property and Competition Law section.The guide is a Q&A-style overview of the regulatory frameworks of the life sciences industries across multiple jurisdictions worldwide, with this chapter addressing the following issues as they relate to Thailand:
Read More