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

Subscribe to Updates
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 Professionals

Industries

Life Sciences

Practices

Regulatory Affairs

Location

RELATED INSIGHTS​ 

April 19, 2021
Thailand has made significant changes to its statutory interest rate framework for the first time in almost a century. Since 1925, the statutory interest rate codified in Thailand’s Civil and Commercial Code (the CCC) has remained at 7.5% per year. But with Covid-19 having an unprecedented impact on the Thai economy, the Thai Government, via emergency decree, has reduced the statutory rate. While the decree is largely aimed at providing relief to hard-hit SMEs and individual debtors, the amendments have broader implications for doing business in Thailand. Main Changes The new interest rate revisions are contained within the Emergency Decree Amending the Civil and Commercial Code B.E. 2564 (2021) (the Emergency Decree), which was published in the Government Gazette on April 10, 2021 and came into effect on April 11, 2021. The Emergency Decree amends Sections 7 and 224 of the CCC, which stated the previous statutory interest rate of 7.5% per year. The Emergency Decree makes three major changes. The first involves a reduction of the statutory interest rate from 7.5% per year to 3% per year in Section 7. The new 3% annual rate is subject to review every three years by the Ministry of Finance. The interest rate is subject to further change later by a royal decree. The second change concerns money debts under Section 224 of the CCC. The previous version of Section 224 stated, among other things, that a money debt based on a default bears interest of 7.5% per year. Under the Emergency Decree, the new actual statutory default interest rate is the statutory interest rate stated in Section 7 with an additional rate of 2% per year. The result is a 5% annual statutory default interest rate. Since the statutory default interest rate is based in part on the Section 7
Read More
February 23, 2021
As many are already aware, following the change of government in Myanmar on February 1, 2021, a draft Cyber Security Law was proposed which attracted widespread criticism. However, less attention has been paid to significant amendments to two existing laws, some of which have a similar effect to parts of the draft Cyber Security Law. In other words, while the draft Cyber Security Law has not progressed further and is under public scrutiny, significant elements of it have found their way into law in Myanmar by other routes. Because these amendments are already law, it is very important that individuals and businesses in Myanmar understand their implications. Amendments to the Law Protecting the Privacy and Security of Citizens The Law Protecting the Privacy and Security of Citizens (2017), or the “Privacy Law,” was amended on February 13, 2021, less than two weeks after the military government came into power. These amendments chiefly address the power of the government to conduct searches, seizures, and arrests; to extend detention without judicial oversight; and to carry out broad surveillance and investigation activities that could intrude on individual privacy. The amendments accomplish this by suspending various sections of the Privacy Law for as long as the State Administration Council (the military body now governing Myanmar) is in power. The suspended sections include the following: Section 5: Search, seizure, and arrest without civilian observation The relevant part of Section 5 of the Privacy Law states, “The responsible authorities shall … when acting in accordance with existing law, not enter into a person’s residence or a room used as a residence, or a building, compound or building in a compound, for the purpose of search, seizure, or arrest, unless accompanied by minimum of two witnesses who should comprise Ward or Village Tract Administrators…”. The suspension
Read More