Starting a Marijuana Business in Thailand

Starting a Cannabis Businesses in Thailand? On June 9,2022, The Ministry Public health has published the list of Category 5 drugs in the Narcotic Act, removing parts of cannabis and hemp from narcotic drugs. The lists include all of the parts of cannabis and any extracts made from the plant must not contain more than 0.2% tetrahydrocannabinol (THC), and Cannabidiol (CBD). If you want to know the basics of starting a marijuana business in Thailand then read further.

cannabis business

Starting a Marijuana business in Thailand

After the announcement come into force in the following regulations, people can grow cannabis without asking for a permission from authorities before planning it, but they have to registered via the “Plook Ganja” mobile application in order to notify The Food and Drug Administration (FDA) that they intent to grow cannabis for household use or for commercial use. However, the sale of cannabis seeds or branches shall comply under the Plant Varieties Protection Act.

In addition, any person who has been convicted of drug-related offences, shall be deemed as not having ever been convicted by the judgment for committing such offence, with the detail as follows:

  • Cannabis-related offences that resulted in court cases, in both sellingpossessingproducing, or consuming the said part of cannabis are not considered an offence.
  • Detention of cannabis-related cases will be cancelled.
  • If such person is still undergoing the punishment, the punishment shall forthwith terminate.
  • The court cannot bring a cannabis-related offense that the court had already judged in the previous case, as a cause to increase the punishment.
  • Police will be unable to arrest anyone in possession of cannabis when it’s officially removed from the Category 5 Narcotics list.

Lets see  how to get marijuana business license in Thailand.

 

Cannabis Import

Importing parts of cannabis and hemp (except seeds):

The importation of hemp and cannabis plants. Both for commercial and personal use is prohibited. This except herbal products that are imported by the government agencies, Public Higher Education Institutions or for research studies. The import of seeds must comply with The Plant Quarantine Act, B.E. 2507 and The Plants Act B.E. 2518.

Permission for importing cannabis seeds or other parts of the plants?

This would include the entire plant, stalk, fiber, leaves, flowers, or root, to produce herbal products or extracts.

There are the following steps as below:

  • Application and permission of importation shall be under the Plant Quarantine Act, B.E. 2507 (1964). This and permission of cannabis seed importation shall be under Plant Variety Act B.E. 2518 (1975).
  • After obtaining permission and/or approval for undertaking relevant actions. The health product contains an extract from cannabis plant as a raw material, shall be proceed under the law as provided for that purpose. However, cannabis cannot be imported to produce food or cosmetics in Thailand.

Disposal of Cannabis

Does the dispose require permission according to any law?

Disposing of any part of plant without requiring any permission unless dispose as a raw materials or production of herbal products shall require a license application.

Disposing of seeds, seedlings and cuttings must comply with The Plants Act B.E. 2518

Disposing of extracts is permitted under the law of Narcotics.

  • In the case of extracts must not contain more than 0.2% tetrahydrocannabinol (THC), a license to dispose narcotics is not required.
  • In case of extracts that contains more than 0.2% of THC, both buyers and sellers must have a narcotic license.

 

Disposing of product comply with the law as provided for its purpose.

Is it possible to import products containing cannabis and hemp extracts, and products containing parts of cannabis and hemp. This including any parts of plants that import for commercial and personal use?

The import of the finished products (food, cosmetics, herbal products). That is any import of products containing cannabis and hemp extracts. Hemp as well as products containing parts of the hemp, both for commercial and non-commercial use is prohibited. This except herbal products that import by Government agencies with a purpose to prevent or treat diseases. These are the  Thai Red Cross Society, Public Higher Education Institutions for education and for research studies.

Hemp Import

Do Cannabis plant and hemp growers need to ask a permission from the authorities?

They don’t have to ask a permission but they have to notify via FDA’s “Plook Ganja” application.

Can people import cannabis and hemp extracts? How?

The import of cannabis and hemp extracts is still strictly regulated by the authorities and need to ask a permission because all part of cannabis extracts have been classified as narcotics under category 5 under the Narcotics Act of Thailand.

Will cannabis and hemp extract included in medical devices be considered Category 5 Narcotics?

They will not be listed as Category 5 Narcotics, but will fall under the Medical Device Act.

Permission needed when importing finished products that contain cannabis or hemp extracts?

Permission is not required because these products do not fall under the Category 5 Narcotics List, but the FDA will control their import based on usage and manufacturing intent.

In case of importation of Food with cannabis extracts, cannot be imported under Notification of the Ministry of Public Health, (Number 424) of B.E. 2564, Section 6 (8), punishable by a fine of 5,000 – 20,000 Baht and imprisonment of 6 mouths to 2 years.

Importation of cosmetics with cannabis extracts is not allowed in Thailand, shall be punished under the Cosmetic Act B.E. 2558, Section 6(1), by a fine not exceeding 200,000 Baht or imprisonment not exceeding 2 years, or both.

In the case of importing other health products such as herbal products, shall comply under the law as specially provided for that purpose.

Could foreigners start a cannabis business in Thailand?

Yes, You can start a cannabis businesses in Thailand. The work permit or business registration is required. Whereby the foreigner should register a foreign business license (FBL), if there is more than 49%, of the shares in the company.

 

Source: Narcotics Control Division Cannabis, Food and Drug Administration

 

 

Legal Update to Law

Report: Drafting Secondary Legislation on Cannabis to Align with Government Policy (March 2024)

This is an update to the changes that the Thai government are considering when it comes to the use of cannabis. There is now an urgent need to draft secondary legislation in Thailand when it comes to the use and production of cannabis. The government has directed that the use of it must be to promote the medical and health benefits while staying with the international obligations.

 

Cannabis Background

The government’s policy has been to make an effort to use cannabis for medical and health-related purposes. Likewise the Prime Minister has now ordered that cannabis must be reclassified as a Category 5 narcotic. There must also be a clear deadline for completion of this by the end of this year. Likewise there are the necessities of a review and amendment of current legal statutes to align with the abovementioned directives.

 

Objectives

The Ministry of Public Health has outlined specific objectives for the secondary legislation, which are delineated as follows:

 

1. Medical and Legitimate Use of Cannabis

The primary intent of the granted permissions for the cultivation, possession, import, export, or consumption of cannabis must strictly be for medical benefits. This as well as for patient treatment, research, or other legitimate uses. Significantly, the legislation should not sanction the use of cannabis for recreational purposes.

 

2. Regulatory Framework and Conditions

Transitioning to the regulatory framework, it is imperative that the system for granting permissions does not impose undue burdens on citizens. At the same time, it must effectively prevent the recreational use of cannabis. To achieve this balance, criteria and conditions for granting permissions will be detailed in the forthcoming Ministerial Regulations. These criteria will encompass:

– Applicant qualifications

– Application submission procedures

– Timelines for the approval process

– Specific conditions for consideration of applications

The legislation must ensure that these regulations are clear, proportionate, and impose minimal compliance costs, focusing solely on essential requirements to mitigate risks associated with recreational use.

 

3. Implementation and Transition Period

– Additionally, once the Ministry’s announcements and Ministerial Regulations are published in the Royal Gazette, it is crucial to allow a reasonable enforcement period. This transition period will enable the public and stakeholders to adjust their businesses and undertake necessary actions in compliance with the new regulations before they come into effect.

Lastly as you will note that this report emphasizes the urgent need to draft secondary legislation that harmonizes with government policy and international obligations regarding cannabis use. By addressing the outlined objectives, the Ministry of Public Health aims to create a balanced legal framework that promotes the medical and health benefits of cannabis. This while mitigate risks associated its recreational use.

 

Starting a business in Thailand

You can also look at starting a restaurant in Thailand or see the food license Thailand article that we wrote as well. Cannabis is new however many foreigners own restaurants in Thailand. Likewise also see the TAT license requirements.  Lastly also see the signboard tax for your business in the country.