Are you thinking about growing cannabis in Thailand? If so, the rules are not as clear as you might imagine. In all honesty, cannabis laws even in places like California are complicated and not straightforward when it comes to legal aspects of growing ganja for wholesale.
Today, we are going to go through these laws and to show you how to obtain a license to grow weed in Thailand in order for it to become a commercial business, Let’s start at the start so you are not confused and know exactly what you are dealing with.
Thailand Cannabis Laws
The Thai cannabis laws regarding the legal uses, production and sale of cannabis in Thailand are as follows. The older Narcotics Act B.E. 2252 that have been in place for decades states that cannabis in Thailand was prohibited in regards to the production, cultivation, possession, sale, storage, manufacturing, and consumption were prohibited as a category 5 substance, but thankfully the laws have now changed.
From 9 February 2022, the new Thai cannabis laws came into place that made all parts of the plant decriminalized The law was fully enacted 10 later on 9 June 2022. His now means that all parts of the cannabis plant such as the buds, sticks, stems, leaves, roots and seeds have been removed from the narcotics list and are no criminal any more.
However, a distinction must be made between the plant itself and its extracts. The latter are still classified as narcotics unless they:
- Contain no more than 0.2% of tetrahydrocannabinol (THC); and
- Come from the seeds and are cultivated in Thailand; or
- Are categorized as a medical devices under medical equipment law and used only for specific purposes.
- Moreover, the recreational use of the plant and smoking in public remains illegal and these offenses can lead to fines of up to 25,000 baht and prison terms of up to 3 months.
Clear Definition of Thai Ganja Laws
When it was first announced that cannabis would be decriminalized in Thailand, it was met with much confusion over the actual meaning of the rules. While it is true that ganja is legal for all manner of health and medical reasons, it’s not legal to smoke it recreationally, and especially not to be smoked in public or a dispensary establishment. This is where the confusion lies for many people.
It is legal to grow your own cannabis at home, but you will need a license to sell it. Licensed weed shops and cannabis dispensaries in Thailand can sell all parts of the plant, although it is illegal for people under the age of 20 years old to buy and pregnant or breastfeeding women.
The truth is that you can grow, store and sell cannabis in Thailand, but you can’t use it recreationally, so you have been warned. Anyone breaking these laws could still face stiff financial penalties for, so you need to take all that into consideration.
How Can I Set Up a Cannabis Business in Thailand?
The truth is that you will need a license to set up a cannabis business in Thailand where you are selling to other people or cultivating for commercial reasons. It seems like the perfect time to setup a business selling or growing cannabis in Thailand with the current market valuation at around 40 billion THB. The figure is expected to massively grow to around 70 billion THB by the end of 2024 in accordance with figures from the Thai Hemp Trade Association.
You will require a Thai Limited Company to set up a cannabis company in Thailand that needs any foreign-owned business to be party owned by a majority Thai shareholder. If you are attempting to set up a commercial size grow enterprise, you might need to get authorization from the Thai Food and Drug Administration (FDA) because they regulate the industry here.
If you simply wanted to buy or sell cannabis in Thailand, it’s not that difficult to do. To grow cannabis here, you must register via the mobile app on Google Play or by visiting the website. Plookganja, that was created by the local FDA. From there, you can fill in details like you ID number, your date of birth and why you want to grow ganja commercially. This will give you a one-year registration.
The rules for importing parts related to cannabis from abroad are a little more complicated. To do this, you will need to get permission in accordance with rules that include the Plant Quarantine Act B.E. 2507 and the Propagation Act B.E. 2518. If you want to import THV extracts from abroad, even those under 0.2% or it’s for medicinal purposes, it’s illegal and would be seen as drug smuggling and you could face prison time.
If you wanted to sell food or drinks or even cosmetic with cannabis extracts, you must ensure that they are under 0.2% THC or they will be illegal.
Step by Step Cannabis Registration Process
Step 1: Getting a license so you can import controlled seed from DOA
Requirement:
· Set up a Thai company
· The company must first register as an importer/exporter with customs
· Foreign director with a work permit and/or Thai director
· Need a place suitable for business operations, with a rental agreement and company map
· Need photos of storage and collection location, tools, and equipment to produce, collect, import, or export controlled seeds
Professional fees: 15,000 THB (VAT 7% not included)
Government fees: 400 THB
Timeframe: Received 1 to 3 business days after filing a complete application.
Validity: 1 year.
Step 2: Register shipment of seeds.
The importer must show:
· Invoice indicating the reason for import or purpose of import (commercial)
· Packing list
· Phytosanitary certificate
· Certificate that the plants are not GMO
· Inform the place where the seeds will be used with evidence (lease, pictures, etc.)
· Declare the variety of the plant with details (how tall, harvest time, necessary substances, suitable weather, area, etc.) / variety profile
· Declare THC % with evidence
· Need to indicate germination rate and purity rate: Both must be proven with a certificate from the government or certifying body from the country where seeds are imported from with a seed quality inspection certificate
Original documents will have to be provided to the customs when clearing the shipment at customs.
Professional fees: 25,000 THB (VAT 7% not included) for the 1st shipment, discounted thereafter if the client can provide adequate documents.
Government fees: 400 THB
Timeframe: Received 1 business day after filing the complete application.
Validity: Only for 1 shipment.
Additional: License to re-package seeds.
Re-packager/seller:
· Must have its trademark (**NOT INCLUDED, MUST BE DONE SEPARATELY**)
· Must provide Thai language labels
· Must mention “controlled seeds” and “store in a cool and dry place out of sunlight and air.”
· Must mention marijuana cultivar
· Must mention cultivar name
· Lot must be numbered and trackable
· Must inform about germination rate and the purity rate
· Must inform about collection and expiration date
· Must inform about net content in weight (metric only) or number of seeds
- Declare the variety of the plant with details (how tall, harvest time, necessary substances, suitable weather, area, etc.) / variety profile
Professional fees: 25,000 THB (VAT 7% not included)
Government fees: 400 THB
Timeframe: Received 1 to 3 business days after filing a complete application.
Validity: Valid until December 31 of the current year.
Trademark: 25,000 THB (VAT 7% not included) of professional fees, and approximately 3,000 THB of government fees.
Additional: License to sell seeds.
Applicant must have:
· A Thai company
· The company must first register as an importer/exporter with customs
· Foreign director with a work permit and/or Thai director
· Need a place suitable for business operations, with a rental agreement and company map
· Must have a suitable storage
· Seeds sold must be labeled correctly (see above)
Professional fees: 15,000 THB (VAT 7% not included)
Government fees: 400 THB
Timeframe: Received 1 to 3 business days after filing a complete application.
Validity: Valid until December 31 of the current year.
Summary
Growing cannabis in Thailand can seem like a lot of legal hassle, but it’s worth it in the long run. You just need to ensure that you get a license legally so you are above the law. If you break these laws, you will receive stiff penalties that can result in jail time and a large fine, so it makes sense to do it right from the start.
The Thailand cannabis laws are a bit vague in some ways, but all of these types of laws are, even across America and Canada, so you need to do your research. Start off on the right foot and do the right thing from the start and everything will be okay,
If you are looking for commercial property options in Thailand for long-term rent or to buy, please click here. If you have any questions or queries, please do drop us a line. But if you are still confused and divided, I suggest that you seek out proper legal advice to ensure you are above the law ad operating legally in Thailand.
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