Considering Thailand’s recent relaxation of cannabis regulations, some may be considering venturing into the cannabis business in Thailand. While countries like the United States and Canada have legalized cannabis, entering the cannabis business in such countries requires a deep understanding of complex regulations. Thailand, too, has intricate regulations concerning cannabis, making it challenging to navigate.
This article briefly introduces the current state of cannabis regulations in Thailand, whether licenses are necessary for conducting cannabis business, and what types of cannabis products can be sold in Thailand.
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Legal Status of Cannabis Cultivation in Thailand
In 2022, Thailand relaxed its regulations on cannabis, allowing individuals to cultivate cannabis at home. By November 2023, over 6,000 cannabis dispensaries had opened in urban areas of Thailand. With the legal amendments, all parts of the cannabis plant, including sprouts, stems, leaves, roots, and seeds, were removed from the narcotics list. While cannabis plants are no longer classified as narcotics, there are regulations regarding extracts that need attention. The regulations for cannabis in Thailand include:
- THC content must be below 0.2%.
- Seeds must be cultivated in Thailand.
- Public consumption of cannabis is prohibited.
- Use of cannabis products while driving is prohibited.
- Cannabis can only be used for specific purposes such as medical, health, or research purposes.
Violating these regulations, such as using cannabis in public, can result in imprisonment for up to three months or a fine of 25,000 baht. Regulations are expected to be reviewed within 2024, with recreational use likely to be prohibited.
Is a License Required for Cannabis Business?
To conduct a cannabis business in Thailand, acquiring multiple licenses and permits is necessary, which can be a complex process.
Firstly, a cannabis cultivation license issued by the Thai Food and Drug Administration (FDA) is required. This license specifies the strains to be cultivated, cultivation locations, and quantities.
For processing and selling cannabis, a cannabis processing and selling license from the FDA is essential. Additionally, retail businesses require a separate retail license.
Moreover, if you are a foreigner, you need to find a Thai business partner as part of the license acquisition process. The requirements include having a registered corporation in Thailand with a Thai representative. Meeting financial criteria set by the FDA and security standards such as surveillance cameras is also necessary.
There are various other criteria and requirements, so those considering cannabis business in Thailand are advised to check the FDA’s official website.
Types of Cannabis Products Allowed
- CBD Products (THC content below 0.2%): CBD products with THC content below 0.2% can be handled. These include CBD oil, CBD balm, CBD edibles, and CBD-infused cosmetics. CBD edibles, such as brownies, CBD gummies, and CBD-infused drinks, are particularly popular in Thailand.
- Medical Cannabis: Medical cannabis requires a doctor’s prescription, and THC content must be below 5%. Thailand was among the first in Asia to legalize medical cannabis, with many hospitals and clinics using medical cannabis and attracting attention as destinations for medical tourism.
Summary
This article has briefly summarized the current cannabis regulations in Thailand and the licenses necessary for cannabis business. Entering the cannabis business in Thailand requires establishing a legal entity in Thailand and meeting numerous criteria set by the FDA. Due to the complexity of license applications, consulting with experienced companies or professionals is recommended.