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

March 2, 2021

Thailand’s Decriminalization of Cannabis Plants

Informed Counsel

The cannabis plant has fascinated many civilizations, societies, and individuals through the centuries with its unique properties, and many have learned how to benefit from these, finding a variety of therapeutic and industrial uses of the plant that, in turn, enhanced domestic economies worldwide. In Thailand, cannabis plants and their derivatives have been used since ancient times as treatment for many diseases, and the plant forms a key ingredient in many Thai traditional medicinal remedies. However, over the past few decades, cannabis usage was seen to change in a way that became incrementally more abusive, resulting in outright prohibition in almost all countries. Thailand was no exception, and in 1979 the Thai government officially enacted the Narcotics Act forbidding the use of cannabis and listing cannabis plants and their derivatives—most notably marijuana (cannabis with psychoactive properties) and hemp (cannabis with limited or no psychoactive properties)—as category 5 narcotics (i.e., prohibited substances).

Despite these restrictions, many Thais continued to use cannabis illegally, and some urged the government to legalize personal and commercial use of cannabis plants and their derivatives. Eventually, some in the Thai government agreed that it was time to consider steps toward legalization, As a result, the government has been taking action to delist cannabis plants from the list of prohibited narcotics since 2018, when a regulation allowed the cultivation of hemp for industrial and non-commercial purposes, such as household cooking and research and development.

The next significant step came in February 2019, when the Narcotics Act (No. 7) was amended, legalizing medical marijuana within certain limitations. In national elections the following month, the Bhumjaithai political party, whose election campaign included a pledge to decriminalize and legalize cannabis plants, won substantial support in parts of the country and chose to join the coalition government, with the Bhumjaithai party leader assuming control of the Ministry of Public Health (MOPH). Since then, the government, with cooperation from the MOPH and the Food and Drug Administration (FDA), has been working to reclassify cannabis products and to issue new regulatory pathways to accommodate these new “cash crops” to boost the domestic economy. Subsequently, a notification was issued in August 2019 that reclassified certain modern drugs, cosmeceuticals, nutraceuticals, cosmetics, and food containing hemp out of the scope of the Narcotics Act. At the same time, cannabis and hemp legalization were also taking a higher profile in the public sphere. For instance, the issue of cannabis legalization was raised and promoted in the election campaigns of early 2019 by one of the large political parties.

After a long interlude (caused primarily by government focus turning to the COVID-19 pandemic and other emergent priorities), a new MOPH notification was published in the Government Gazette on December 14, 2020, expanding the delisting of cannabis from the Narcotics Act to include nearly all parts of cannabis and hemp plants, as detailed in the table below.

Anyone who wishes to participate in this emerging cannabis industry must be cautious and carefully review the Narcotics Act and its relevant notifications. Although many parts of the cannabis plant were delisted, there some parts remain on the narcotics list (e.g., marijuana seeds, buds, and leaves with cannabis inflorescence or complete cannabis flower head), and the limits on CBD and THC content must be strictly observed.

Importantly, this notification covers only cannabis cultivated in Thailand. Foreign participants are precluded from any participation in an approved cannabis business until a five-year ban on foreign participation—counting from the initial delisting in February 2019—has passed. This means that only the Thai government and its authorized partners have standing to apply for a commercial license until February 20, 2024, which is when foreign parties will be allowed to obtain a commercial cannabis license (subject to any extension or further imposition of restrictions). However, non-commercial licenses (e.g., for research and development) may be issued to Thai applicants.

Despite these limitations, the MOPH notification is another progressive step for driving cannabis research, development, and industry in Thailand. In addition, it delisted other plants that had been classified as category 5 narcotics, including kratom plants (a common plant in Southeast Asia with mild stimulant properties) such as Mitragyna speciosa (Korth.) Havil; opium plants such as Papaver somniferum L. and Papaver bracteatum Lindl.; and fungi of the species Psilocybe cubensis, which contain psilocybin or psilocin. Further notifications on these substances are expected to be issued soon.

The government quickly followed up on the December 14, 2020, notification by publishing another notification on December 30, establishing the criteria for filing applications for licenses to produce, import, export, distribute, and possess hemp (Cannabis sativa) in Thailand. Processing of these applications by the FDA opened on January 29, 2021, for interested Thai citizens and entities under Thai law. Industry operators are now waiting for the Thai FDA’s final promulgation of its own regulations for cannabis licensing to support this development.

Parties interested in entering into this emerging industry should closely monitor the ongoing development of the regulatory regime for cannabis plants in Thailand, as this regime is solidifying rapidly. Those who stay apprised of the situation and remain ready to act when opportunities arise will be able to take full advantage of the new regulatory changes, and in the process will help strengthen a nascent industry in Thailand.

RELATED INSIGHTS​ 

December 12, 2024
On November 21, 2024, the National Assembly of Vietnam adopted a law amending and supplementing the 2016 Law on Pharmacy (“Amended Law on Pharmacy”). The Amended Law on Pharmacy simplifies some procedures for the pharmaceutical field, and will take effect on July 1, 2025, except for regulations on drug registration and rights and responsibilities of certain types of pharmaceutical business. Some outstanding points in the Amended Law on Pharmacy are presented below. E-commerce Distribution The Amended Law on Pharmacy allows trading in pharmaceutical products by the e-commerce channel, including e-commerce trading floors, e-commerce sales applications, and e-commerce sales websites with online ordering functions. Accordingly, e-commerce retail of non-prescription drugs is permitted if the drugs are neither specially controlled drugs nor drugs included in the list of drugs restricted for retail sale, and e-commerce wholesale of drugs and drug materials is permitted, as long as they are not specially controlled drugs. New Rights for Import FIEs The amendment provides some additional rights to foreign-invested enterprises (“FIEs”) that import drugs, including the rights to: Repurchase drugs and drug materials manufactured through the technology transfer of the FIE itself in Vietnam, and sell such products to wholesalers; Import drug materials to supply to drug manufacturers in Vietnam that are hired by or receive technology transfer from the FIE itself under a processing contract or technology transfer contract; Deliver and transport drugs and drug materials the FIE has imported, outsourced for processing, or transferred technology for in Vietnam, from the FIE’s warehouse to its wholesalers; Deliver and transport drugs used in aid, sponsorship, humanitarian, and disease prevention and control programs to medical facilities receiving funding; and Transport drug materials imported by the FIE from its warehouse to drug manufacturers that are hired by or receive technology transfer from the FIE itself under a
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
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
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.