Category Archives: News & Articles

This legal summary provides an overview of the laws and regulations governing product recalls in Thailand under the Consumer Protection Act, B.E. 2522 (1979). It aims to guide business operators on mandatory steps, recommended practices, and compliance requirements when conducting product recalls within Thailand.

This summary is designed to assist all business operators in Thailand, offering guidance on adhering to product safety standards and complying with consumer protection laws.

The Consumer Protection Act, B.E. 2522 [A.D. 1979]

The Consumer Protection Act mandates that goods intended for sale in Thailand must be safe. It outlines specific requirements that business operators must consider:

• Goods must meet safety standards based on their characteristics, components, design, packaging, assembly instructions, and consumer expectations.
• The presentation, labeling, warnings, and usage instructions must adequately address safety concerns.
• Businesses must assess potential risks when goods are used in conjunction with other products and consider vulnerable consumer groups.
• Compliance with universally accepted safety measures and best practices is required.

The Act prohibits business operators from manufacturing, ordering, or importing dangerous goods that could pose risks to life, health, or property, except for goods regulated by specific laws.

Measures for Label-Controlled Goods

For goods classified as “label-controlled” (goods manufactured or imported for sale), business operators have additional responsibilities:

• They must continuously monitor the safety of these goods throughout the warranty period.
• Implement appropriate safety measures to mitigate identified risks.
• Establish effective channels for consumer notifications and maintain comprehensive records of these communications.

Duty to Notify the Public

Business operators are required to notify relevant parties promptly under certain circumstances:

1. Voluntary Notification: Operators may notify relevant parties when they suspect their goods may be dangerous.
2. Mandatory Notification: Notification becomes mandatory if the goods cause severe harm or danger, necessitating alerts to consumers, relevant authorities, and the Committee overseeing consumer protection.

Duty to Recall and Remedial Actions

Upon identifying risks associated with their products business operators must take immediate action, such as rectifying, modifying, replacing, or recalling the goods. They must promptly inform the Office of Consumer Protection about the issue and actions taken, providing specific details about the goods and the nature of the identified danger.

Proof of Safety and Committee’s Powers; The Committee established under the Act has the authority to:

• Order testing of goods suspected to be dangerous and set deadlines for reporting test results.
• Impose temporary sales prohibitions pending the verification of product safety.

Dangerous goods (the term) is defined as goods which causes or may cause danger to life, body, well-being, health, mental condition, or property, excluding goods which is already subject to specific laws.

In addition to testing and sales prohibitions, the Committee can:

1. Lift sales prohibitions based on favorable test results.
2. Prescribe further corrective actions if deemed necessary to mitigate risks posed by dangerous goods.
3. Action after No-Sell Order

When a no-sell order is issued:

• Business operators must promptly remove the goods from the market.
• Notify consumers about the recall and the potential risks associated with the product.
• Compensate affected parties for any losses incurred due to the recall.

Based on the provisions of the Act, affected companies operating in Thailand should immediately notify distributors, service providers, advertising agencies, consumers, and the Consumer Protection Board upon identifying a product defect. Additionally, they should initiate a recall process promptly and effectively communicate recall details to all relevant stakeholders. We also advise that they continue to maintain accurate records and comply with reporting requirements stipulated under the Act.

This summary offers comprehensive guidance on navigating the product recall process under Thai consumer protection laws. It underscores the importance of proactive compliance to ensure consumer safety and adherence to regulatory requirements in Thailand. As always, we highly suggest that you seek professional legal assistance and encourage you to reach out to us at law@ilct.co.th

Consumer Protection: Laws and Regulations Governing Product Recall [please download]

In accordance with the regulations governing visa policies and international agreements, notable modifications have been made regarding exemptions and visa-on-arrival privileges for various nationalities, from May 9, 2024. The following adjustments are to be duly noted:

Indian Passport Holders:

Effective from May 11, 2024, to November 11, 2024, Indian passport holders are eligible to enter Thailand without a visa for a period of stay not exceeding 30 days.

Kazakhstan Passport Holders:

From March 1, 2024, to August 31, 2024, individuals holding Kazakhstan passports may enter Thailand without the requirement of a visa for a period of stay not exceeding 30 days.

Taiwan Passport Holders:

Commencing from May 11, 2024, to November 11, 2024, holders of Taiwanese passports can enter Thailand without a visa for a period of stay not exceeding 30 days.

Tourist Visa Exemption Scheme:

Passport holders from Brazil, Korea (Republic of Korea), and Peru are entitled to the tourist visa exemption scheme upon entry into Thailand.

Bilateral Agreements:

Thailand has entered into bilateral agreements with Brazil, Korea (ROK), and Peru, allowing holders of diplomatic, official, and ordinary passports to avail visa exemption for visits not exceeding 90 days.

Vietnam and Hong Kong Passport Holders:

Under the tourist visa exemption scheme, passport holders from Vietnam and Hong Kong are entitled to enter Thailand without a visa.

Bilateral Agreements with Vietnam and Hong Kong:

Bilateral agreements with Vietnam and Hong Kong enable holders of diplomatic, official, and ordinary passports to enjoy visa exemption for visits not exceeding 30 days.

Russian Passport Holders:

As of May 1, 2024, until October 31, 2024, individuals holding Russian passports can stay in Thailand without the necessity of obtaining a visa for a period of stay not exceeding 60 days.

Myanmarese Passport Holders:

Through bilateral agreements, Myanmarese passport holders are permitted to enter Thailand for a duration of 14 days without obtaining a visa. However, it is imperative to note that entry must be facilitated through an international airport.

Bangladeshi and Pakistani Passport Holders:

Holders of diplomatic passports from Bangladesh and Pakistan are entitled to a visa-free stay of up to 30 days in Thailand.

Greek and Spanish Diplomatic Passport Holders:

Diplomatic passport holders from Greece and Spain are granted entry and permission to stay in Thailand for a period of 90 days without the need for a visa.

These amendments to the visa policies of Thailand are implemented in accordance with the prevailing laws and regulations and are subject to periodic review and adjustment as deemed necessary by the competent authorities. Any queries or concerns regarding these modifications should be directed to the appropriate governmental agencies responsible for immigration and visa affairs.

As always, it is recommended to seek professional legal advice regarding this issue. Please do not hesitate to reach out to law@ilct.co.th and we will connect you with one of our immigration specialists.

Summary of Changes to Countries and Territories Entitled for Visa Exemption and Visa on Arrival to Thailand [please download]

Innovation is the fundamental pillar of achievement in the rapidly evolving business landscape. It is essential for both emerging entrepreneurs and established industry players to safeguard their intellectual property to sustain a competitive advantage. However, the patent application process in Thailand, like many other countries, involves a variety of examination and review phases. Although its purpose is to verify the validity and integrity of patents, this procedure can be lengthy and cumbersome. Time is unfortunately of the essence in the fast-paced business environment of today. Delayed patent approvals may result in missed opportunities, thereby enabling competitors to seize advantages of similar ideas or technologies. The examination and issuance of a Thai patent typically take up to ten years, commencing from the date of filing until the patent is finally granted. The Department of Intellectual Property Thailand (DIP) received around 13,000 patent applications by 2022, comprising both domestic and foreign submissions. This volume of applications results in a backlog of patent applications that are yet to be examined in Thailand.

Fortunately, there are ways to expedite the examination and grant of a Thai patent, allowing inventors to enjoy the benefits of their invention sooner. In this article, we will explore the steps to expedite the patent application process in Thailand.

In order to expedite the examination and issuance of a Thai patent, applicants may utilize a variety of mechanisms and strategies. Steps for expediting the approval of a Thai patent are as follows:

1.  Submitting a letter requesting for expedited examination of a patent application directly to the DIP

Directly addressing the DIP with a letter requesting for expedited examination of a patent application speeds up the approval process in a straightforward and direct manner. By employing this approach, applicants can formally convey their desire for expedited evaluation and furnish rationales for why their application merits priority review.

2.  Adjustment of the existing Thai specification and claims to align with the corresponding foreign patent

Applicants may submit copies of letters patent, search reports, and substantive examination reports from corresponding foreign patents (e.g., those from the United States, European Patent Organization, United Kingdom, Australia, Japan, and China) to expedite a Thai patent application. This procedure entails adjusting the existing specifications and claims of the Thai patent to align with the chosen foreign jurisdictions. Applicants can utilize the examination results and legal standards that have already been established in these nations to expedite the approval process in Thailand. Implementing this approach not only expedites the evaluation procedure but also improves the likelihood of obtaining patent approval by ensuring compliance with internationally recognized patent standards

3.  Requesting for the external examination with Thai Patent Office

Applicants may request an accelerated examination procedure from external entities, such as the Australian Patent Office, specialized agencies, or agreed Thai University for a novelty search at the applicant’s expense. This method may expedite the issuance of exclusive rights to an invention beyond the timeframe permitted by standard procedure. In order to justify the acceleration, the request typically involves providing compelling reasons, such as impending commercialization or potential market competition. Furthermore, it may be necessary for the petitioner to furnish extensive documentation and evidence that substantiates the invention’s novelty and inventiveness. Upon approval, the external examination process proceeds swiftly, potentially reducing the time typically required for patent approval and enabling the inventor to bring their innovation to market more quickly.

4.  Patent Acceleration Programs

Patent acceleration programs are strategic endeavors implemented by patent offices and affiliated organizations with the aim of accelerating the examination of patent applications. The primary objectives of these programs are to promote innovation, reduce redundancy, improve the efficacy of the patent system, and decrease the backlog of pending patent applications.

i)  ASEAN Patent Examination Cooperation (ASPEC)

The ASPEC program was launched on 15 June 2009. The ASPEC is the first regional patent work-sharing initiative comprised of the IP Offices of nine ASEAN Member States (AMS): Vietnam, Brunei, Cambodia, Indonesia, Lao, Malaysia, Philippines, Singapore, and Thailand.

This program aims to facilitate the expeditious and more efficient acquisition of corresponding patents by applicants residing in participating countries by exchanging search and examination results among participating offices. By eliminating redundant tasks during the search and examination process, the program has the potential to reduce work and accelerate turnaround time.

Request for the ASPEC program is provided with no cost to the applicant. However, local search and examination fees will continue to apply at the AMS IP office.

As of 27 August 2019, two initiatives under the ASPEC have been introduced:

a) ASPEC Acceleration for Industry 4.0 Infrastructure and Manufacturing (ASPEC-AIM)

This initiative operates within the framework of the ASPEC program. Its primary objective is to facilitate the advancement of Industry 4.0 technologies in the ASEAN region by prioritizing Industry 4.0 patent applications. These encompass progressions in sectors such as hardware, software and connectivity. The ASPEC-AIM endeavors to accelerate the commercialization of groundbreaking Industry 4.0 solutions and foster economic expansion in the ASEAN region by supporting innovators to receive a patent more quickly and reduce Time to Market (TTM) with a committed turnaround time of 6 months to receive the first office action.

Application submitted under this program will be evaluated based on search and examination results report issued by another participating AMS IP Office on the corresponding application. This program has a capacity of 50 applicants per year.

b) Patent Cooperation Treaty-ASEAN Patent Examination Cooperation (PCT-ASPEC)

This collaborative program between the World Intellectual Property Organization (WIPO) and AMS has combined the benefits of the PCT and the ASPEC program.

Under the PCT-ASPEC program, patent applicants may register a single international patent application through the PCT system. The application will be evaluated by using a PCT reports/written opinions established by ASEAN International Searching Authority or International Preliminary Examination Authority (ISA/IPEA). These reports subsequently facilitate the examination process in other AMS IP offices. Through the utilization of the ASPEC program’s collaboration among ASEAN patent offices and the PCT system’s international filing process, the PCT-ASPEC framework serves to optimize operations, diminish administrative obstacles, and elevate the standard of patent evaluation throughout the ASEAN area. This platform offers a streamlined and economical method for enterprises and inventors to pursue patent protection in numerous ASEAN nations, thus promoting economic expansion and facilitating innovation in the area. The program has a capacity of up to 100 applications per year.

Both programs have been extended for an additional 2-3 years until 26 August 2025.

ii) JPO-DIP Patent Prosecution Highway (PPH)

The JPO-DIP PPH is the cooperation program between the DIP and the Japanese Patent Office (JPO) to speed up the patent application by requesting urgent patent inspection.

The objective of the PPH Pilot Program is to optimize the efficacy of patent applicants in both nations and streamline the patent examination procedure. Patent applicants who receive a patent inspection result of the first patent office (DIP/JPO) are eligible to request expedited examination of their corresponding patent applications submitted at the second patent office (DIP/JPO). This enables applicants to potentially accelerate the overall patent grant process by using examination results obtained in one jurisdiction to streamline the examination process in the other. As a result, duplication of efforts is reduced. The PPH program promotes international cooperation in the preservation of intellectual property rights while enhancing the quality and efficiency of patent examination through the facilitation of information exchange and the utilization of each other’s examination results. The pilot program functions as a significant mechanism for enhancing the bilateral relationship between Japan and Thailand with regards to intellectual property, while also promoting economic growth and innovation in both nations.

PPH program is projected to end in December 31, 2025 with possible extension.

iii)  Target Patent Fast-Track

In order to address burgeoning public health and food security concerns that have reached unprecedented magnitudes, the DIP has launched Target Patent Fast-Track: Medical Sciences, Public Health since 2022, and newly added Target Patent Fast-Track: Future Food since 2024. This fast-track program aims to expedites patent and petty patent application relating to Medical Sciences, Public Health and Future Food. Applications will be selected by the DIP for the participation in the program. Selected application will receive urgent patent examination and announce the results within 12 months for patent and 6 months for petty patent after the commencement date of participation in the program.

In conclusion, the examination and issuance of a Thai patent can be accelerated in a number of ways, including by utilizing the results of foreign examinations, submitting convincing justifications, and participating in patent acceleration programs. By exploring these alternatives and maneuvering the patent application process strategically, applicants can expedite the endorsement of their patents and gain a competitive advantage in the market.

This article was authored by Mr. Panudeth Juengwiwattanakitti, a Patent Specialist at ILCT. For specific legal advice on this matter, please contact us at ipgroup@ilct.co.th

Unlocking Innovation: Expedite Your Thai Patent Approval for Competitive Advantage [please download]

On March 12, 2024, the Cabinet made significant strides in fiscal policy by endorsing tax measures designed to stimulate fundraising activities utilizing digital tokens for investment purposes, termed Investment Tokens. This legal article provides a comprehensive examination of the ratified tax measures, elucidating their ramifications and objectives within the framework of nurturing the digital economy in consonance with governmental directives.

The individual investors who receive share of profits (dividend) or any benefits of a similar nature from holding or possessing investment tokens may elect to pay personal income tax at the rate of 15% equal to withholding tax amount, instead of including the share of profits (dividend) or any benefits for personal income tax calculation and paying tax at progressive rates up to 35% of the net income, provided the investors do not claim for a refund or use withholding tax amount as a tax credit, whether in wholly or partially.

These tax measures become enforceable from January 1, 2024, onwards, symbolizing their immediate applicability in the fiscal landscape.

In conclusion, the Cabinet’s endorsement of tax measures on March 12, 2024, signifies a seminal progression towards nurturing the growth and maturation of the digital economy within the nation. By incentivizing investment through digital tokens and aligning oversight standards akin to those governing securities, the government underscores its commitment to harnessing technology for economic advancement. The delineated tax benefits serve to incentivize individual participation in tokenized investment ventures while ensuring compliance with pertinent tax statutes. Overall, these measures epitomize the government’s proactive stance towards promoting and cultivating the digital economy, positioning the nation for sustained prosperity and innovation in the digital age.

As always, it is recommended that you seek professional legal advice regarding this matter to ensure accurate information. Please contact law@ilct.co.th for more information concerning this.

Cabinet-Approved Personal Income Tax Measures for Investment Tokens [please download]

Empowering the Future: Cabinet Extends Tax Relief Measures for Digital Assets Trading

In a notable development on February 6, 2024, the Cabinet announced its resolution to extend tax relief measures for digital asset trading, providing a lifeline for individuals and juristic entities involved in the realm of cryptocurrencies (“Cryptos”) and utility tokens. The Value Added Tax (VAT) exemption for transfers of Cryptos and utility tokens has been extended from December 2023 to January 1, 2024, onwards.

“Cryptocurrency” means an electronic data unit built on an electronic system or network created for the purpose of being a medium of exchange for the acquisition of goods, services, or other rights, including the exchange between Digital Assets. “Digital Tokens” consist of:

• “Investment Token” means an electronic data unit created on an electronic system or network which is issued for the purpose of specifying the right of a person to participate in an investment in any project or business.
• “Utility Tokens” means an electronic data unit created on an electronic system or network which is issued for the purpose of specifying the right of a person to acquire specific goods, specific service, or any specific other right under an agreement between the issuer and the holder, and shall include any other electronic data units of right as specified in the notification of the Securities and Exchange Commission.

VAT exemption for individuals and juristic entities on Transfers of Cryptos and Utility Tokens:

1. Transfer Crypto or Utility Tokens traded on the Digital Asset Exchange under the Digital Assets Business Law
2. Transfer Cryptos or Utility Tokens traded through Digital Asset brokers under the Digital Assets Business Law
3. Transfer Cryptos or Utility Tokens to Digital Asset Dealers (“Buyers”) under the Digital Assets Business Law
4. Transfer Cryptos or Utility Tokens by Digital Asset Dealers (“Sellers”) under the Digital Assets Business Law.

The Cabinet’s decision to extend tax relief measures for Cryptos and Utility Token trading signifies a strategic move to bolster the burgeoning Digital Assets market. By providing VAT exemptions for a range of transactions, the government aims to stimulate growth, encourage innovation, and create a favorable environment for both individuals and juristic entities.

It’s important to note that transfers of investment tokens in the primary market and secondary market have been exempt from VAT since May 14, 2018, under Royal Decree No. 779.

As with all legal related matters, it is advised that you consult a professional legal advisor for expert opinion. Please reach out to us at law@ilct.co.th.

Empowering the Future: Cabinet Extends Tax Relief Measures for Digital Assets Trading [please download][

The Revenue Department has recently announced changes to the taxation of foreign-sourced income brought into Thailand by Thai tax residents. Previously, Thai tax residents who earned income abroad would not be subject to personal income tax if the taxable income was not brought in within the same tax year that it was earned.

Effective from 1 January 2024 onwards, foreign-sourced income brought into Thailand in any tax year will therefrom be subject to Thai personal income tax. Additionally, personal income tax on foreign-sourced income shall be applied for the foreign-sourced income incurred from this date onwards. Simply put, this means that only income generated and brought into Thailand from the start of 2024 will be subject to Thai personal income. If the income was generated before 2024 and brought into Thailand in 2024, or later years, it will not be subject to Thai personal income tax.

Key Points of the Revenue Department Order:

A Thai tax resident is defined as an individual residing up to 180 days or more in Thailand within a tax year. Under the new regulations, Thai tax residents who earned foreign-sourced income in the same tax year are required to include foreign-sourced income in their Thai Personal Income Tax calculations in the tax year in which the taxable income was brought into Thailand.

This includes income from employment, foreign business activities, or foreign property ownership brought into Thailand in the tax year. The combined income, including foreign sourced income, is subject to Thai Personal Income Tax at progressive rate of 0-35% of the net income.

Those who have experienced tax deductions or payments on their foreign-sourced income in another nation may have the opportunity to use these tax deductions or payments as tax credit against their Thai Personal Income Tax in Thailand or exemption, as the case may be. This option is available in accordance with the rules prescribed in the applicable Double Tax Treaties between Thailand and the respective foreign country.

These modifications represent a considerable transformation in the taxation of foreign-sourced income brought into Thailand, requiring thoughtful deliberation from individuals impacted by the updated regulations.

Seeking guidance from tax professionals is advisable to ensure proper compliance and tax optimization. Please reach out to law@ilct.co.th for any specific legal enquiries.

Personal Income Tax on foreign-sourced income brought into Thailand by Thai tax residents [please download]

In a significant legal development, the Minister of Interior, acting on the recommendations of the Hotel Business Promotion and Control Committee, has issued the “Ministerial Regulation on Hotel Business Types and Criteria (No. 2) B.E. 2566 (2023),” hereinafter referred to as the “New Regulation.” Published in the Royal Gazette on 30th August 2023.  This New Regulation is set to become effective on 29th October 2023, marking an amendment to the “Ministerial Regulation on Hotel Business Types and Criteria B.E. 2551 (2008).”

This article outlines the New Regulation’s three key provisions and their implications for the Thai hotel industry:

1. Revision of non-hotel accommodation criteria: The New Regulation broadens the definition of ‘Non-Hotel Accommodations’ from those with up to 4 rooms and 20 guests to those with up to 8 rooms and 30 guests. This change will mean that over 50,000 previously recognized small hotels will now be excluded from the Hotel Act classification (Section 4(3)). The amendment aims to preserve unique architectural and cultural characteristics in local community accommodations, which often exceed 4 rooms. These changes will reduce the burden on communities to conform to Building Control Regulations to obtain a Hotel Business License, preventing adjustments that could diminish cultural building uniqueness.

The New Regulation not only reclassifies many small hotels but also encourages community accommodations for tourism home stays. It mandates property owners (recognized in this context by the Ministry of Interior as individuals as opposed to companies or other juristic persons) intending such use to notify the hotel registrar. The registrar conducts inspections and, if compliant, issues a notification. Owners must inform the registrar if they cease such usage. This increases supervision of Non-Hotel Accommodations, complementing existing hotel regulations.

2. Revisions to Hotel Types: The revised hotel regulations introduce changes to the categorization of hotels. Under the previous regulations, ‘Type 1 hotels’ were defined as establishments with up to 50 rooms, while ‘Type 2 hotels’ were those offering guest rooms as well as a canteen room. This required hotel operators planning to construct hotels with more than 50 rooms to include a canteen room. However, the New Regulation redefines ‘Type 1 hotels’ as those with up to 50 rooms and ‘Type 2 hotels’ as those with more than 50 rooms or those with a canteen room. This modification effectively eliminates the requirement for hotels with over 50 rooms, that solely provide accommodations, to include a canteen room in their facilities. Notably, this modification complements the great demand for local street food in Thailand, making it unnecessary for hotels to provide a canteen room. Nevertheless, Type 3 and 4 hotels have remained the same.

3. Revisions to Buildings with Special Characteristics: The New Regulation is connected to the “Ministerial Regulation on Building Control Criteria and Security Systems for Hotel Businesses B.E. 2566 (2023),” having also been published on the same day. This regulation sets out specific rules for unique hotel buildings to be able to apply for construction certificates, which is the most significant qualification for the hotel operation license application
   According to the regulation, unique hotel buildings that can now operate as hotels include raft or boat hotels, tent hotels, modified wreck vehicles, container hotels, and hanging hotels with heights exceeding 2 meters from the ground, such as tree houses. The regulation sets specific requirements for these unique hotel buildings. For example, it acknowledges that these buildings cannot easily meet the standard hotel building requirements related to building structure and fire resistance materials. Therefore, the regulation removes these obstacles to preserve the distinctive character of each special hotel building.

Nevertheless, the regulation continues to ensure the safety of these unique hotel buildings. For instance, it mandates that each permitted unique hotel building must have one portable fire extinguisher for every 112 square meters of the hotel area. In essence, these buildings can now meet the criteria to apply for construction certificates, enabling hotel operators and potential investors to open these distinctive buildings as hotels.

As a result of the notable changes in these laws, it is advised that hotels seek legal guidance for specific queries. Reach out to law@ilct.co.th for any support.

Amendment to the “HOTEL” definition and criteria to accommodate operators with small unique accommodations (please download)