New Draft Bill for Cannabis and Hemp of Thailand

Since 9 June 2022, cannabis and hemp are no longer classified as narcotics under the Narcotics Code,which may lead to widespread possession, consumption, and use. This situation could have significant impact on public health, economy, and society.

To address these concerns and align with government policy, on 6 November 2024, the Ministry of Public Health has proposed the Cabinet, a new draft bill to regulate the cultivation, production, import, export, sale, and advertisement of cannabis, hemp, and their extracts (the “Draft Bill”). The Draft Bill is currently under review and consideration by the Cabinet.

KEY PROVISIONS OF THE DRAFT BILL

A. Licensing Requirements

The Draft Bill establishes that the cultivation, production, import, and sale of cannabis, hemp, and their extracts require licenses from the Director-General of the Department of Thai Traditional and Alternative Medicine.

The application for a license to cultivate cannabis or hemp will be categorized based on the size of the cultivation area:

• • Small area : Not exceeding 5 rai (approximately 1.98 acres)
  • Medium area : More than 5 rai but not exceeding 20 rai (approximately 7.91 acres)
  • Large area : More than 20 rai but not exceeding 400 rai (approximately 158.16 acres)

In addition to a general license, the import and export of cannabis, hemp, and their extracts will require a specific permit for each transaction.

B. Exempt Activities

The Draft Bill exempts the following activities from licensing requirements:

• • The production, export, or sale of roots, branches, leaves, stems, or seeds of cannabis or hemp (excluding cannabis and hemp flowers).
  • The prescription of cannabis, hemp, or their extracts for the treatment, care, alleviation of human ailments, or disease prevention by licensed medical practitioners, dentists, Thai traditional medical practitioners, applied Thai traditional medical practitioners, Chinese medicine practitioners, or folk medical practitioners, as defined under the laws on Thai traditional medical professions.

C. Applicant Eligibility

Applicants for the licenses must not possess any prohibited characteristics as specified in the Draft Bill. In addition, the following eligibility criteria apply:

• • Individuals must be Thai nationals, of at least 20 years old, and residents of Thailand and has no prohibited characteristics under the law.
  • Companies must be Thai nationality with its office in Thailand, with directors who are Thai nationals and of at least 20 years old and has no prohibited characteristics under the law.
  • A community enterprise that is not a legal entity under the law on community enterprises with its representative who is Thai national and of at least 20 years old and has no prohibited characteristics under the law.
  • The Thai Red Cross Society or a government agency with related responsibilities under the law.

D. License Validity and Renewal

Licenses are valid for 3 years from the date of issuance and must be renewed before expiration.

E. Limitation on the Use of Cannabis, Hemp and Their Extracts

The Draft Bill prohibits any consumption of cannabis, hemp and their extracts, except the following cases:

• 1. Treatment, relieve of pain for human and prevention from diseases including the use for wellness under the control of licensed medical practitioners, dentists, Thai traditional medical practitioners, applied Thai traditional medical practitioners, Chinese medicine practitioners, or folk medical practitioners, as defined under the laws on Thai traditional medical professions;
  2. Research by government authorities, research for medical study, pharmaceutical study or science, medical pharmaceutical or science service, for the benefit of medical use, pharmaceutical use, Red-Cross use or academic use; and
  3. Production of herbal products, medical products, food products, cosmetic products or other products as specified by relevant laws and regulations.

F. Fees

License fees will be determined by ministerial regulations issued by the Ministry of Public Health, subject to the maximum rates outlined in the annex to the Draft Bill. Fee amounts may vary based on the cultivation area, the quantities of cannabis, hemp or their extracts, or the size of the licensee’s business.

 G. Advertisement

The Draft Bill prohibits the advertisement or marketing communication of cannabis flowers or resin, hemp flowers or resin, extracts, and tools or equipment related to cannabis smoking. Additionally, all other advertisements concerning cannabis, hemp, or their extracts must not be false, misleading, or exaggerated, nor support or encourage illegal or immoral actions.

CONCLUSION

In conclusion, the new Draft Bill offers a clearer regulatory framework for the cultivation, production, import, export, sale, and advertisement of cannabis, hemp, and their extracts, addressing significant gaps in the existing legislation. While the timeline for its enactment remains uncertain, the approval process by the Cabinet and Parliament is underway, with expectations that the new law could be in place by Q2 of 2025. Once enacted, this legislation will not only enhance legal clarity but also bolster the stability and growth potential of the cannabis and hemp industries in Thailand, creating a more secure environment for investors and entrepreneurs.

For businesses navigating these changes, ILAWASIA offers expert legal advice and regulatory support to help clients stay compliant and seize emerging opportunities in this dynamic sector. Let us be your trusted partner in ensuring your business thrives in the evolving legal landscape.

Authors: Tanadee Pantumkomon, Wachinorot Siladet and Phoomphop Rungsri