Page 1 of The Application Request Service and Examination Division, Trademark Bureau, the Department of Intellectual Property.

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1 Page 1 of 9 Although it presents numerous opportunities the Thai market can pose significant challenges for foreign companies. Whether buying, selling or investing, whether dealing in physical products or knowledge, it is important to be aware of the complexities and risks. Outdated or overlapping regulations are common challenges in Thailand, as businesses have become more sophisticated and outpaced the original domains covered by tax codes and regulations. None are insurmountable, but they do require time and resources. Grey areas cannot always be clarified, and should be recognised as a potential risk element. Intellectual Property Rights (IPR) As a member of the World Trade Organization (WTO), Thailand is committed, under the auspices of the Trade-Related Aspects of Intellectual Property Rights (TRIPs) agreement, to provide the effective and appropriate enforcement of IPR. The Thai Government has been taking systematic measures to reduce IPR violation in every sphere of business activity, including producing, distributing, selling, importing and exporting. Trademarks Trademark protection in Thailand is regulated through the Trademark Act BE 2534 (1991), which came into force on 13 February There are four options for submitting an application for the registration of a trademark in Thailand. They are: 1. The Application Request Service and Examination Division, Trademark Bureau, the Department of Intellectual Property. 2. The Provincial Commercial Offices. 3. Via registered mail to the Trademark Registrar, the Department of Intellectual Property, with a payment of the fee by money order, payable to the Trademark Registrar. 4. Via the internet at the online trademark service: (only available in the Thai language at present). The process of registering a trademark in Thailand can take up to nine months. It is valid for ten years from the date of registration and may be renewed within 90 days prior to expiry for a further period of ten years. Thailand's trademark registration procedures in English can be found at (only available in the Thai language at present). Patents, petty patents and designs

2 Page 2 of 9 In Thailand, inventions and product designs can acquire a protection under the Patent Act BE 2522 (1979), later amended by the Patent Act (No.3) BE 2542 (1999). Detailed information on the Patent Act and application procedures in English can be found at (only available in the Thai language at present). It can sometimes take up to one year for the application of protection to be granted. Duration of protection: - Patents are valid for 20 years - Petty patents are valid for six years (although they can be renewed twice, with each renewal lasting for two years. Therefore the maximum duration is ten years). - Designs are valid for ten years. Copyright In 1931 Thailand became a member of the Berne Convention for the Protection of Literary and Artistic Works, an international agreement governing copyright. Copyright protection in Thailand is provided through the Copyright Act BE 2534 (1994), which was promulgated on 21 December 1994 and became effective on 22 March In Thailand the period of validity for copyright in a work which is created in the course of employment, instruction or control, endures for 50 years from creation. If the work is published during this period, copyright endures for 50 years from first publication. Computer programs in Thailand are protected as literary works under the Copyright Act. For more information contact: Department of Intellectual Property 44/100 Nonthaburi 1 Road Bangkrasow Muang Nonthaburi Thailand Tel: +66 (0) Fax: +66 (0) osdip@moc.go.th Website: Procurement Since 2005 Thai government procurement over 2 million baht ( 40,000) has been conducted through an electronic auction. The responsible organisation is the Thai Government Procurement Office ( - only available in the Thai language at present). Normally, large private companies/state enterprises/government organisations advertise their invitation to bid in the Bangkok Post and The Nation, two local English-language daily newspapers.

3 Page 3 of 9 The UKTI team in Bangkok publishes details of tenders received directly from state enterprises or government organisations on the UKTI website ( under "Business opportunities". Regulations and Standards Investment rules and incentives Two governmental organisations have the authority to grant investment incentives in order to encourage both foreign and local investment in Thailand. They are: - Thailand Board of Investment (BOI) : may grant general investment privileges. These are based on the location of the enterprise. Presently, there are three general regional zones, to which are allocated different levels of investment privileges. - Industrial Estates Authority of Thailand (IEAT): has the authority to grant investment privileges to enterprises that are located specifically within industrial estates that have been developed either by the IEAT, or as a joint venture between the IEAT and a private entity. While the BOI provides valuable incentives many Thai and foreign companies establish businesses without BOI assistance. Accordingly, investors should carefully consider the advantages of seeking BOI incentives before making an application. Foreign ownership The Foreign Business Act 1999 allows foreign ownership of businesses in Thailand according to a classification on three lists. List 1 allows for no foreign ownership, List 2 allows very restricted foreign ownership and List 3 allows up to 49 per cent foreign ownership. However, foreign investors often wish to own all or at least a majority interest in their subsidiaries established abroad. Where such a subsidiary in Thailand seeks BOI privileges, the BOI may allow it to be majority or 100 per cent foreign owned, subject to conditions. In 2007 the Thai Government considered further amendments to the Foreign Business Act which would have made it more difficult for foreign companies to own a majority shareholding in a business in Thailand. The initiative lost momentum after the return to power of civilian government in However, UK companies thinking of investing in Thailand should ensure they have the relevant and up-to-date information before making any decisions. Comprehensive information and guidance are available on the BOI website ( and from the UKTI team in Bangkok. Customs duties The majority of imported articles in Thailand are subject to two different taxes: tariff duty and VAT. The Customs Tariff Decree also contains a section on goods that are

4 Page 4 of 9 exempt from duty. Foreign trade transactions are subject to certain provisions of the exchange control law and various licensing requirements: - Import duty: The majority of goods imported by businesses in Thailand are subject to duty rates of between 0 per cent and 100 per cent. - Value added tax (VAT): VAT was introduced in Thailand on 1 January 1992, replacing business tax. The current rate of VAT is 7 per cent, down 3 per cent from when it was first introduced. Export goods are not subject to VAT. - Excise tax: Import goods in Thailand subject to excise tax are petroleum products; beverages; electrical equipment; perfume and cosmetics; crystalware or other types of crystal products; passenger cars and vehicles seating not more than ten people; and yachts. - Export duty: Export duties apply to seven items - rice; scrap metal; raw or tanned hides of bovine animals; rubber; wood; raw silk and silk yarn; and powdered fish. - Exchange controls: Most imports valued at over 500,000 baht can be cleared only upon presentation of a certificate issued by a commercial bank demonstrating that the import has been reported to the Bank of Thailand. - Exports exceeding 500,000 baht in value : Before these can be cleared, the exporter must present a Certificate of Exportation to the Customs officer. Normally, export proceeds must be brought into Thailand within 180 days and converted to baht or deposited in a foreign currency account in Thailand within 15 days of receipt. - Duty refund: Goods such as raw materials used in producing, processing or packaging items for export may be imported under a system allowing for duties paid to be refunded or for a guarantee to be posted. The items imported must be re-exported within the time stipulated under Customs regulations. Imported goods which are not processed in any way and are not kept in a bonded warehouse are eligible for a partial duty refund equal to 90 per cent of the duty paid or the entire duty paid in excess of 1,000 baht, whichever is higher. - Exceptions: Custom duty exceptions apply to the importation of machinery, equipment and materials for use by oil and gas concessionaires, their contractors, and certain companies promoted by the BOI. - Businesspeople relocating to Thailand may import their household effects, but the Customs Department requires that a work permit be submitted before they are released free of duty. - ASEAN agreement: Thailand, as a member of ASEAN, is subject to the agreed plan for the reduction of import duties that applies to trade between all the ASEAN countries. Thailand, which is also a member of the World Trade Organization (WTO)

5 Page 5 of 9 and General Agreement on Tariffs and Trade (GATT), currently has free trade agreements (FTAs) with four countries: China (signed under ASEAN), Australia, New Zealand and India. FTA negotiations with other countries are under way. More detailed advice on Thai customs duties can be found at Import controls Certain goods entering Thailand are subject to import controls. They include: - Drugs, foods and supplementary products : require prior licensing from the Food and Drug Administration at Thailand's Ministry of Public Health. - Antiques/works of art: require permission from the Fine Arts Department. - Weapons, ammunition, explosives, fireworks and real or replica firearms require an appropriate licence from the Ministry of Interior. Weapons such as electric-shock devices must also be declared. Some of these items may require a permit before importation. - Cosmetics: Thailand's Cosmetic Act stipulates that, for the purpose of protection of public health, any importer of controlled cosmetics must provide the name and location of the office and the place of manufacture or storage of the cosmetics, the category or kind of cosmetics to be imported and their major components. - Wild fauna, flora, fish and other aquatic fauna: Depending on the goods being imported, permission is required from the National Park, Wildlife and Plant Conservation Department, the Department of Agriculture or the Department of Fisheries. Customs documentation When goods arrive in or leave Thailand the importer/exporter is required to file a goods declaration and supporting documents to Customs to enable cargo clearance. To speed up and facilitate the flow and movement of legitimate cargo the Thai Customs Department provides two clearance systems: manual and electronic data interchange (EDI). The procedure works as follows: 1. Importer/exporter files a goods declaration (Customs Form No. 101 or No. 101/1). 2. Importer/exporter prepares the following supporting documents:invoice Packing list Foreign transaction form if the free on board (FOB) value exceeds 500,000 baht Export/import licence (if applicable) Other relevant documents (if applicable)

6 Page 6 of 9 3. Customs checks the declaration and supporting documents. 4. Customs collects export duties and taxes. 5. Customs inspects and releases cargo. Labelling and packaging The labelling of products in Thailand is regulated by the Consumer Protection Act BE 2522 (1979), which is administered by the Consumer Protection Committee (CPC). The CPC in turn delegates its authority to individual committees on advertising, labels and contracts. Generally, goods that are manufactured (by the factories covered by the law on factories and goods) and ordered or imported into Thailand for sale are designated as label-controlled goods. However, the Committee on Labels also has the power to designate the following goods as controlled for the purpose of labelling: 1. Goods whose nature or usage may endanger physical or mental health. 2. Goods that are regularly used by the public and where labelling would benefit. Labels on controlled goods must contain truthful statements. They must not include any statements which could lead to misunderstanding as to the material facts concerning the goods in question. Getting your goods to Thailand Sea freight: Goods can be sea freighted in consolidated containers to Bangkok Port and Laem Chabang Port. The average delivery time from UK seaports to Thailand is days. Air freight: Goods normally arrive within two to three days. Consolidated air freight (which is cheaper) takes between seven and ten days. Courier: Several courier companies operate in Thailand, including DHL, FedEx, TNT, UPS and OCS. Postal parcel/express mail service: The Thai service provider is Thailand Post ( They must also feature: - The name or trademark of the manufacturer or importer. - The place of manufacture or the place of operating import business.

7 Page 7 of 9 - Statements indicating the nature of the goods. - The name of the manufacturing country, in the case of imported goods. - Price, quantity, usage, recommendations, caution and expiry date. In no circumstances may the Committee on Labels force business operators to reveal their manufacturing secrets, unless such information is essential to the health and safety of consumers. All products sold in Thailand must have a Thai label. For further information please contact: Division of Consumer Protection on Labelling Office of the Consumer Protection BoardThe Government Complex 5th Floor, Building 5 Chaengwattana Road Laksi, Bangkok Thailand Tel: +66 (0) Fax: +66 (0) consumer@ocpb.go.th Website: Standards and technical regulation Standardisation policies in Thailand come under the remit of the Thai Industrial Standards Institute (TISI) ( part of the Ministry of Industry. Getting Paid and Financial Issues Since 1997, 100 per cent advanced payment through wire transfer is commonly used by traders in Thailand instead of an open account. Necessary details such as bank name, account name, account number, bank address and swift code have to be given to clients. Bank drafts are used for smaller purchases. For a middle-term customer, 50 per cent pre-payment and 50 per cent payment after invoice date can be agreed upon. The normal credit term is 30 days. For a long-term customer this can be extended to 120 days. Irrevocable Letters of Credit would be used if the total sale amount exceeds 1 million baht ( 20,000). Financial assistance There are 32 commercial banks in the Thai banking system - 14 Thai commercial banks, two retail banks, one subsidiary bank and 15 branches of foreign commercial banks. They include the UK's HSBC ( and Standard Chartered Bank (Thai) Public Co Ltd ( As of 24 February 2008, foreign currency brought into or taken out of Thailand above the value of US$20,000 must be declared at the Thai Customs Office. Thai currency over the amount of 50,000 baht must also be declared. People travelling to one of

8 Page 8 of 9 Thailand's neighbouring countries are not allowed to take out more than 500,000 baht of Thai currency. Non-residents are allowed to open foreign currency accounts with any commercial bank in Thailand. As a special gesture to non-residents no restrictions are imposed on the maintenance of and withdrawal from the account, as long as the funds originate from abroad. Travellers cheques in US dollars can be cashed at provincial banks and authorised money changers, but the best rates can be obtained in Bangkok. Hotel rates are usually lower than those offered by banks and authorised money changers. Bank working hours Main offices and branches: (Monday-Friday) Branches operated in department stores: (Monday-Sunday) Insurance The private sector in the UK provides credit insurance for exports of consumer products, raw materials and other similar goods. Speak to your banker or insurance broker for more information or contact the British Insurance Brokers' Association for impartial advice. British Insurance Brokers' Association Tel: +44 (0) (consumer helpline) enquiries@biba.org.uk Website: Private-sector insurance has some limitations, particularly for sales of capital goods, major services and construction projects that require longer credit packages or are in riskier markets. The Export Credits Guarantee Department (ECGD), a separate UK government department that reports to the Secretary of State for Business, Innovation and Skills, provides a range of products for exporters of such goods and services. Export Credits Guarantee Department Tel: +44 (0) help@ecgd.gsi.gov.uk Website: Management Control and Quality Assurance UK companies use a variety of quality assurance and management control techniques in Thailand. These include extensive travelling by UK personnel, a controlling or liaison presence in Thailand or providing extensive training and management for Thai staff. It is important not to allow milestones to slip by, whether these are attending a board meeting in a joint venture or arranging a quality audit with a supplier.

9 Page 9 of 9 Particular attention to detail should be paid when sourcing products from Thailand. Specifications can be misunderstood, so they need to be very clearly explained and agreed, and a quality management system put in place with the Thai company. Consultancies can undertake all or part of this process on your behalf. Bribery and Corruption Corruption remains an issue in Thailand. Anyone doing business in the country is likely to encounter or hear of corruption in one form or another. Practices such as facilitation payments, bribes and the giving and receiving of expensive gifts in order to develop business relationships are still a problem in certain places. Our advice to companies encountering corruption is simple - don't get involved. Not only are there issues of business integrity to bear in mind, but it is also, of course, illegal. Companies should ensure that all their commercial activities in Thailand are compliant with the UK Bribery Act which is set to come into force in April In 2010 Thailand was ranked 78th out of 178 nations in the Corruption Perceptions Index compiled by Transparency International. By way of comparison to other Southeast Asian nations, Malaysia ranked 56th, Indonesia 110th and the Philippines 134th. Source - UKTI Sponsored By: ; Contact IMA International Market Advisor IMA House 41A Spring Gardens Buxton Derbyshire SK17 6BJ United Kingdom info@ima.uk.com General enquiries switchboard:+44 (0) Website: