New Cannabis Industry Regulations in Thailand
A new bill on the legalization of marijuana in Thailand addresses the role of foreigners in the production and import of cannabis into the country. Foreigners will be allowed to own shares in commercial production of pharmaceutical products based on marijuana. According to the new regulations, foreign ownership cannot exceed 33%.
The new rules, developed by the Ministry of Public Health, will allow the production of marijuana-based medicines in Thailand for local consumption and export, with prior approval from the Narcotics Control Board and the Ministry of Health.
Currently, the bill is under review by the State Council, the agency responsible for ensuring that all legislative bodies in Thailand comply with existing laws. If the law is passed, the regulations are expected to take effect in the first quarter of 2020.
Industry observers and marijuana legalization activists in Thailand are closely monitoring developments, as no private company has yet received a license to produce cannabis in the country.
If approved, the new rules will open up an entirely new world of business in cannabis and medicinal marijuana. The economic benefits will be felt by the entire population of Thailand. Marijuana will, for the first time, move beyond the narrow confines of laboratory research. At the same time, efforts will continue to prevent abuse and the diversion of marijuana into illegal recreational use.
Since the beginning of this year, licenses for the production of narcotic cannabis have been limited to government organizations, universities, and hospitals, and only for research and patient treatment purposes, not for commercial use.
The Narcotics Control Board will grant companies the status of “authorized person of the Ministry of Health,” allowing them to apply for a license to cultivate marijuana and produce cannabis-based medicines.
We Need More Marijuana, My Lord!
Government hospitals in Bangkok and beyond are currently overwhelmed with patients suffering from cancer and neurological diseases. They are hoping for cannabis treatment, but there is currently only one state producer of cannabis oil, and only for research purposes. Commercial production of medicinal cannabinoids has not yet been established. There are simply no local suppliers of marijuana in Thailand for the production of cannabis-based medicines.
Thousands of practicing doctors, pharmacists, and dentists specially trained in cannabis-based treatments have licenses to use marijuana. However, these licenses are gathering dust on the shelves, as doctors cannot find cannabis-based medicines to prescribe to their patients.
The launch of commercial production of cannabis-based medicines will help meet the high demand among the Thai population.
Flooding the World with Marijuana
The export of cannabis-containing medicines to the global market is clearly stated as a justification for the new law. This suggests that world-class technology and investment will be required for the industrial production of high-quality cannabis-based medicines.
Modern pharmaceutical companies, both Thai and foreign, are already well-versed in the know-how and have the necessary resources. They have every chance to obtain the status of “authorized persons of the Ministry of Health” under the new regulations for the production and distribution of medical cannabis products.
The adoption of these regulations will provide enough confidence for large Thai conglomerates to participate in this promising venture, supported by foreign funds and partnerships.
In the future, it is possible to imagine dozens of modern pharmaceutical plants in Thailand, as joint ventures with major Thai corporations, located, for example, in the Eastern Economic Corridor. This will become a reality as soon as the marijuana industry is fully operational.
Is This Really Allowed?
While some officials promote the economic benefits that cannabis can bring, Thai authorities are cautious in advancing and commercializing this sector. This caution compels them to implement strict measures to vet potential participants in this multi-billion-dollar market.
According to the application procedures outlined in the draft guidelines, applicant companies will undergo detailed background checks by authorities, and proof of a clean criminal record will be required.
It is not specified how detailed the background checks will be or whether they will cover shareholders and company directors, but such a possibility should be anticipated.
Two-Step Authentication
The licensing procedure itself will take place in two stages. For a company to apply for the status of “authorized person of the Ministry of Health,” it must already have a standard license to produce non-narcotic pharmaceutical products from the Food and Drug Administration (FDA).
An FDA license to manufacture medicines and the status of “authorized person of the Ministry of Health” will allow the company to apply for a license to produce narcotic cannabis, also issued by the FDA.
Existing pharmaceutical companies that already have a regular FDA license to manufacture medicines will have an advantage; it will be easier for them to immediately enter the cannabis business and obtain a second FDA license to produce narcotic cannabis-based medicines.
Two FDA licenses will automatically allow them to sell and distribute finished cannabis-based medicines on the Thai market—no additional sales licenses will be required. However, standard registration of drug formulas is still necessary.
Bring in the Marijuana by the Barrel
Many foreign fans of Thailand will be pleased to learn that the new bill is very friendly to tourists.
After several months of uncertainty, the bill finally details how foreign tourists can obtain a Thai license to use and carry their own marijuana for the treatment of personal illnesses, as prescribed by doctors in their home countries.
Foreigners will be allowed to bring a 90-day supply of marijuana. A copy of the prescription and the original doctor’s certificate with the necessary details will be required.
The required information includes the patient’s name and address, illness, diagnosis and symptoms, the name and characteristics of the narcotic drug, prescribed doses and the amount of the substance, as well as the name, address, and certificate number of the attending physician.
There is no mention of notarization of documents, but as with any documents issued abroad, notarization by a public notary and legalization and certification of the documents (not their content) by the Thai embassy in the applicant’s country should be expected.
The bill also provides for the licensing of airlines to transport marijuana on board for emergency assistance to passengers.