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New Electronic Transactions Bill: Major Changes for Digital Contracts, E-Signatures and Trust Services

A major overhaul of the legal framework for electronic transactions is underway. A new Electronic Transactions Bill has been submitted to the Cabinet with the objective of replacing the existing Electronic Transactions Act and modernizing the rules governing electronic documents, electronic signatures and seals, automated contracts, electronic transferable records, electronic stamp duty, and electronic transaction service providers.

The Bill is not yet law. If it completes the legislative process and is published in the Government Gazette, it is intended to take effect 180 days after publication. The existing Electronic Transactions Act and its amendments would then be repealed. The government has also indicated that 26 pieces of subordinate legislation are being prepared—two Royal Decrees, three Ministerial Regulations, and 21 notifications—to support implementation of the new regime.

Electronic transactions as the principal mode, without eliminating paper:

The Bill reflects a broader policy shift toward making electronic transactions a principal means of conducting transactions rather than treating electronic methods merely as alternatives to paper. This does not mean that paper transactions will become invalid or prohibited. Instead, the proposed framework strengthens the principle of functional equivalence between electronic and paper-based processes.

Electronic information and electronic printouts may therefore satisfy requirements traditionally associated with documents or evidence, subject to the applicable reliability requirements. An important practical consequence is that disputes concerning electronic evidence are likely to focus increasingly on the reliability of the process and system used to create, transmit, authenticate, and preserve the information, rather than simply on whether the information exists in electronic form.

Electronic signatures and electronic seals:

The Bill strengthens the framework for electronic signatures and expressly addresses electronic seals. Where a reliable electronic method is used, or a method specified by the Electronic Transactions Development Agency (ETDA) is followed, an electronic signature or seal may satisfy the corresponding legal requirement for a physical signature or seal.

The express recognition of electronic seals is particularly relevant to juristic persons and organizations that need to authenticate the origin and integrity of documents without requiring an individual to sign every document personally. In practice, businesses should review not only the technology used for electronic signing, but also authorization procedures, identity verification, audit trails, document integrity, and record retention.

Contracts formed by automated systems:

The Bill expressly addresses contracts formed through automated systems, an increasingly important issue for digital commerce.

A contract would not be denied legal effect merely because an automated system performed the relevant transaction without an individual reviewing or intervening in each step. The proposed framework recognizes legal effect where the system operates in a manner that the parties could reasonably expect from its normal operation. It also provides greater clarity concerning the sending, receipt, and acknowledgment of electronic information.

This provision has potentially broad application. It is relevant not only to conventional e-commerce platforms but also to automated procurement, payment systems, algorithmic transaction processing, and other business systems capable of initiating or completing transactions without contemporaneous human intervention.

For businesses, the important issue will therefore increasingly be who bears the legal consequences of the operation of an automated system, and whether the system’s operation falls within what the parties could reasonably have anticipated. Contract terms dealing with system errors, unauthorized transactions, allocation of risk, authentication, and system-generated records may consequently become more important.

Electronic transferable records:

Another major development is the introduction of a framework for electronic transferable records, including bills of exchange, promissory notes, and checks in electronic form.

The proposed regime allows such instruments to have legal effect equivalent to their paper counterparts, while translating concepts traditionally dependent on physical possession—such as possession, delivery, and endorsement—into an electronic environment. The framework therefore addresses control of an electronic record, identification of the person exercising control, transfer, endorsement, and alteration of information through reliable electronic methods.

This is potentially significant for banks, financial institutions, exporters and importers, logistics operators, and businesses involved in trade finance. The legal recognition of electronic transferable records could facilitate end-to-end digitalization of commercial and trade documentation that has historically remained dependent on original paper instruments.

Electronic stamp duty:

The Bill also expressly recognizes electronic stamp duty, with electronic stamping to be carried out in accordance with the criteria and procedures prescribed by the Revenue Department.

This is an important practical component of electronic contracting. Moving a contract to an electronic format does not by itself eliminate tax or stamp duty requirements. Businesses designing digital contracting workflows should therefore integrate execution, authentication, stamping, and record retention rather than treating these as separate processes.

Seven categories of electronic transaction service providers:

One of the most substantial regulatory changes is the introduction of a broader framework governing electronic transaction service providers. The Bill identifies seven categories:

  1. identity proofing or authentication services;
  2. electronic signature services;
  3. electronic date and time-stamping services;
  4. electronic information receipt, transmission, or storage services;
  5. website or domain name registration or certification services;
  6. electronic transferable record system services; and
  7. other services prescribed by Ministerial Regulation.

The significance of this framework extends beyond classification. The Bill moves toward a risk-based regulatory approach, under which the duties and responsibilities imposed on service providers can reflect the risks associated with their services. Providers are expected to use reliable methods when creating, sending, receiving, storing, or processing electronic information and to maintain information capable of serving as evidence of transactions. Failure to comply with statutory duties may also result in liability for resulting damage.

The proposed framework therefore represents a broader conception of digital trust infrastructure. Electronic signatures, identity verification, timestamps, transmission and storage services, domain-related services, and electronic transferable record systems are treated as components of an ecosystem supporting reliable electronic transactions.

From licensing toward risk-based certification:

The Bill also changes the regulatory architecture applicable to service providers. Rather than relying exclusively on the existing licensing model, the proposed regime introduces certification mechanisms administered or recognized by ETDA, while allowing the level of regulatory intervention to correspond to the risks associated with particular services. The government’s description of the Bill indicates that certification may be obtained through ETDA or through certification bodies recognized under the statutory framework.

This distinction will be important once the subordinate legislation is available. Businesses currently providing—or procuring—electronic signature, identity, timestamp, electronic storage, or similar services should determine whether their activities fall within one of the seven categories and what certification or technical standards may ultimately apply.

Transitional arrangements:

The Bill contains transitional provisions intended to prevent disruption to existing regulated services.

In particular, providers of digital identity proofing and authentication services already licensed under the existing legal regime are intended to be treated as certified providers under the new legislation. This should facilitate continuity when the new regulatory framework replaces the existing regime.

Importantly, the existing Royal Decree governing digital platform services subject to notification requirements will continue to apply notwithstanding the replacement of the existing Electronic Transactions Act. It will remain in force until separate legislation governing digital platform service businesses becomes effective.

Digital platform operators should therefore not interpret the new Bill as terminating their existing obligations under the current digital platform regime.

Implementation will depend heavily on subordinate legislation:

Although the Bill establishes the overall statutory architecture, much of its practical effect will depend on subordinate legislation. The government has indicated that approximately 26 subordinate instruments are being prepared, comprising two Royal Decrees, three Ministerial Regulations, and 21 notifications.

This will be particularly important for determining what constitutes a reliable electronic method, the standards applicable to particular service providers, certification requirements, technical requirements for electronic transferable records, and the operation of the risk-based regulatory framework.

Accordingly, businesses should not wait only for enactment of the primary legislation. Organizations that rely heavily on digital transactions may wish to begin mapping their current electronic processes—including contracting, electronic signatures and seals, identity verification, automated systems, time-stamping, document transmission and storage, electronic evidence, and stamp duty—against the structure contemplated by the Bill.

Key takeaways:

  • The Bill represents a fundamental modernization of the electronic transactions framework rather than a limited amendment to the existing legislation. Most notably, it moves beyond the basic legal recognition of electronic documents and signatures toward a broader infrastructure for digital trust and end-to-end electronic transactions.
  • The proposed recognition of automated contracts and electronic transferable records could remove significant legal uncertainty from transactions that previously depended on human intervention or original paper instruments. At the same time, the seven-category framework for electronic transaction service providers introduces a substantially broader regulatory architecture based on the risk associated with the relevant service.
  • The Bill is not yet in force. The existing Electronic Transactions Act and applicable subordinate legislation therefore continue to govern electronic transactions. If the Bill completes the legislative process in its present form, it is intended to become effective 180 days after publication in the Government Gazette.
  • Businesses should monitor both the progress of the Bill and, importantly, the 26 subordinate instruments being prepared. For many businesses and technology providers, those instruments may ultimately be as important as the Act itself in determining the technical, certification, and compliance requirements applicable to electronic transactions.

Author: Panisa Suwanmatajarn, Managing Partner.

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Cabinet Extends Skills Development Programs to 2031 to Strengthen Industry-Ready Skills

Executive Summary

On September 15, 2026, the Thai Cabinet approved an extension and strategic realignment of the “New-Breed Vocational and Graduate” development initiatives, spearheaded by the Ministry of Higher Education, Science, Research and Innovation (MHESI). The program’s timeline has been extended from its original 2026 (B.E.2569)  completion date to 2031 (B.E.2574), backed by a remaining budget allocation of THB 3.1 billion.

Designed to combat persistent talent shortages in advanced economic sectors, this policy pivots toward a “Skills-First, Degree Later” framework, focusing intensely on practical, industry-aligned competencies in high-growth technology and manufacturing clusters. For domestic and multinational enterprises operating in Thailand, this extension signals a major opportunity to collaborate with academic institutions, tap into government-backed workforce subsidies, and bridge critical talent gaps.

1. Key Highlights of the Cabinet Resolution

  • The initiative’s execution period is officially extended through 2031, providing long-term regulatory and funding stability for workforce planning.
  • The extended program aims to upskill and reskill 81,600 individuals, split between 80,000 enrollees in Non-Degree professional certificate courses and 1,600 enrollees in formal degree pathways.
  • Priority is heavily weighted toward 10 Future Growth Engine industries, including Semiconductors, Artificial Intelligence (AI), Electric Vehicles (EVs), High-Value Medical and Health Services, and Small and Medium Enterprises (SMEs).
  • The curriculum shifts to agile Non-Degree programs (3–4 months or 9 credits) allowing participants to accumulate academic credits that can be transferred toward a full degree later. Crucially, at least 50% of the learning hours must involve hands-on practical training within actual business enterprises.
  • Other key ministries (such as the Ministry of Labor, Ministry of Industry, and NESDC) have aligned with the policy, emphasizing unified database tracking, integrated KPIs, and institutional mentoring models to elevate readiness across all participating universities and firms.

2. Strategic Benefits for Businesses

Employers and corporate investors stand to gain multiple strategic advantages under the extended 2031 (B.E.2574) framework:

  • Direct Access to Pre-Vetted, Job-Ready Talent: Because the curriculum is co-designed around the specific technical requirements of high-tech and future industries, participating enterprises bypass traditional onboarding and retraining bottlenecks.
  • Cost-Efficient Talent Incubation: Companies can leverage government-subsidized frameworks to train workers on real company projects. The requirement for 50% practical workplace training means businesses effectively gain dedicated project contributors while shaping them into permanent hires.
  • Alignment with Thailand 4.0 Incentives: Participation strengthens a corporation’s profile when aligning with Thailand Board of Investment (BOI) criteria, particularly regarding human capital development, R&D collaboration, and technology transfer mandates.
  • Enhanced Retention and Higher Productivity: Historical data from the 2018–2025 (B.E.2561-2568) phase demonstrated that graduates of these programs experienced higher initial employment rates and wages compared to standard curricula, translating to lower turnover and higher operational efficiency for employers.

3. Legal and Compliance Preparation for Businesses

To maximize the benefits of this initiative while mitigating regulatory risks, corporate legal and human resources teams should proactively address the following legal and operational steps:

  • Review and Restructure Internship & Trainee Agreements: As students must complete at least 50% of their curriculum via practical work placement, companies must ensure their standard internship contracts comply with Thai Labor Protection Act provisions, particularly concerning non-employee student trainees, confidentiality obligations, and intellectual property (IP) assignment.
  • Secure Intellectual Property (IP) and Invention Assignments: Given that trainees will be embedded in core R&D, technology, and AI operations, robust IP assignment clauses must be integrated into agreements to ensure that any innovations, code, or proprietary designs developed during the program vest fully with the corporate employer.
  • Data Protection and Cross-Border Compliance (PDPA): With the program emphasizing digital skills, data analytics, and inter-agency database integration, companies must ensure that handling and sharing employee or trainee performance metrics with MHESI or partner universities strictly complies with the Personal Data Protection Act (PDPA).
  • Formalize Institutional Partnerships: Enterprises wishing to access the 81,600 target talent pool should formalize Memorandums of Understanding or consortium agreements with participating MHESI-approved universities (numbering over 123 institutions) to secure priority placement for cohorts tailored to their corporate needs.

Author: Panisa Suwanmatajarn, Managing Partner.

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Thailand Seeks U.S. Investment in AI and Digital Infrastructure

Executive Summary

During an official diplomatic mission to New York, a high-level Thai delegation led by the Prime Minister and Minister of Interior, accompanied by the Deputy Prime Minister and Minister of Commerce, and the Minister of Digital Economy and Society (“DES”), engaged in strategic discussions with global financial and technology leadership—including senior executives from Bank of America (“BofA”), Microsoft Corporation, and Pacific Investment Management Company LLC (“PIMCO”). Joined by senior representatives from the Stock Exchange of Thailand (SET) and the Federation of Thai Capital Market Organizations (FETCO), the delegation presented Thailand’s policy roadmap to over 25 major institutional fund managers representing more than USD 40 trillion in assets under management (AUM).

The discussions focused primarily on foreign direct investment (FDI) opportunities in Thailand’s rapidly expanding digital economy—specifically targeting Artificial Intelligence (“AI”), data center architecture, cybersecurity, digital infrastructure, and clean energy transition to support energy-intensive tech operations. To reinforce global investor confidence, the Thai government emphasized its neutral, balanced foreign policy between the United States and China, focusing on mutual economic benefit without taking sides. Furthermore, the delegation expressed gratitude to Microsoft Corporation for its ongoing support of Thailand’s accession process to the Organization for Economic Co-operation and Development (“OECD”) as a structural catalyst to elevate domestic regulatory frameworks, legal productivity, and regional supply chain competitiveness.

Benefits for Thai Business Operators and Local Investors

The Thai government’s focused push to position the country as Southeast Asia’s digital and AI hub creates significant structural advantages for domestic commercial entities and institutional investors:

  • Local Tech, Telecom, and Infrastructure Developers: Domestic companies operating in telecommunications, cloud hosting, and data center facilities stand to benefit directly through joint ventures, technical knowledge transfer, and strategic co-investments with major U.S. technology leaders such as Microsoft Corporation.
  • Renewable Energy and Utility Operators: As large-scale AI processing and data center operations require sustainable power, local clean energy providers gain direct commercial opportunities through long-term Power Purchase Agreements (PPAs) and green energy solution partnerships.
  • Export and Technology-Driven Supply Chains: Alignment with international technology and OECD standards enhances the global competitiveness of Thai enterprises, facilitating seamless integration into multinational supply chains and technology networks.
  • Thai Capital Market and Local Financial Institutions: Sustained engagement with top-tier asset managers like PIMCO and BofA stimulates foreign portfolio allocations toward domestic debt and capital markets, lowering capital costs and enhancing liquidity for local corporate issuers seeking digital transformation financing.

Preparation for Thai Business Operators and Investors: Strategic and Legal Roadmaps

To effectively absorb foreign direct capital, leverage advanced U.S. technology, and ensure seamless commercial integration, domestic business operators and local investors should address key regulatory, legal, and operational considerations:

1. Compliance with the Upcoming Draft Digital Infrastructure Act for Data Center Operators

Under the pending Draft Digital Infrastructure Business Operation Act, data center operators face an evolving regulatory landscape:

  • Licensing & Corporate Setup: Operators shall incorporate as a Thai limited or public limited company, secure an operating license from the Ministry of Digital Economy and Society (DES), and post performance financial guarantees.
  • Resource & Environmental Standards: High-energy operations shall meet mandatory clean energy consumption ratios, strictly manage power/water usage effectiveness (PUE/WUE), comply with zoning rules, and undergo Environmental Impact Assessments (EIA).
  • Local Data Storage: The bill enforces data localization for domestic personal and corporate data, permitting overseas transfers only under specific legal exemptions.

2. Data Governance, Cross-Border Transfer, and Cybersecurity Compliance

In tandem with sector-specific data center rules, domestic entities shall maintain full compliance with the Personal Data Protection Act B.E. 2562 (2019) (PDPA) and the Cybersecurity Act B.E. 2562 (2019). Companies partnering with multinational cloud or AI providers shall review cross-border data transfer mechanisms and cloud infrastructure security protocols to ensure strict regulatory alignment.

3. Intellectual Property (IP) Protection and Technology Licensing

Collaboration with foreign technology providers involves processing proprietary algorithms and advanced software solutions. Thai business operators shall establish comprehensive IP protection strategies under the Patent Act B.E. 2522 (1979) and the Copyright Act B.E. 2537 (1994). Commercial contracts shall explicitly define IP ownership rights, technology licensing terms, source code access, and non-disclosure obligations (NDAs) for co-developed AI solutions.

4. Corporate Structuring, Green ESG Alignment, and Investment Incentives

Foreign partnerships and joint venture arrangements shall comply with statutory foreign equity limitations prescribed under the Foreign Business Act B.E. 2542 (1999) (FBA). Additionally, local enterprises should structure corporate vehicles to align with international ESG metrics and capitalize on green investment privileges granted by the Board of Investment (BOI) or regulatory incentives within the Eastern Economic Corridor (EEC) framework.

5. Workforce Upskilling and Legal Governance for AI Integration

Local companies integrating enterprise AI solutions should update internal employment contracts, acceptable use policies, and compliance manuals to account for AI-driven workflows. Organizational governance frameworks should adhere to national guidelines—such as the Thailand National AI Strategy and Action Plan—ensuring transparent algorithmic risk management and proper employee training on data privacy and cyber defense.

Author: Panisa Suwanmatajarn, Managing Partner.

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ETDA’s TTR Guidance: A New Framework for E-Marketplace Fee Transparency

The Electronic Transactions Development Agency (ETDA) has issued new guidance introducing the concept of the Total Take Rate (TTR) for e-marketplaces. The guidance is intended to give merchants a clearer and more comparable picture of the total fees and expenses associated with selling through an e-marketplace, particularly before they decide whether to participate in a campaign, promotional program, or additional service.

The initiative responds to an increasingly complex fee structure in the e-commerce ecosystem. A merchant’s cost of selling through an e-marketplace may extend well beyond the headline commission rate and include payment processing fees, infrastructure or system fees, campaign participation costs, merchant-funded discounts, advertising fees, affiliate fees, and charges for additional services. Because these charges may use different names, rates, and calculation bases, merchants may find it difficult to determine the actual economic cost of a transaction. The TTR framework is designed to address this information gap by presenting the aggregate financial impact in a standardized and understandable form. (ETDA⁠)

What is the Total Take Rate?

Under the guidance, TTR generally represents the total fees and expenses borne by a merchant in connection with the sale of a product, expressed as a percentage of the net product price. The net product price is essentially the initial selling price after deducting discounts for which the merchant is responsible. TTR should be presented both as a percentage and as an actual monetary amount so that merchants can see how platform charges affect the proceeds they expect to receive. (ETDA⁠)

The guidance divides TTR into three components:

Baseline TTR represents the aggregate fees ordinarily necessary for an order to take place and be completed. These may include commissions, payment processing fees, and infrastructure fees, without including costs attributable to campaigns or additional services.

Scenario TTR takes the Baseline TTR and adds the costs associated with a particular campaign or additional service that the merchant is considering. Depending on the arrangement, these may include additional discounts, campaign participation charges, advertising fees, affiliate fees, or fees for special programs.

Incremental TTR represents the difference between the Scenario TTR and Baseline TTR. It therefore gives the merchant a relatively straightforward indication of the additional economic burden associated with participating in the proposed campaign or additional service. (ETDA⁠)

This distinction is important because a platform’s headline commission rate may provide only a partial picture of the actual cost of a sale. By comparing the Baseline and Scenario TTR, a merchant can assess the financial position both with and without participation in a particular campaign.

Disclosure before the merchant commits:

A central feature of the guidance is the timing of disclosure. Relevant TTR information should be made available at the point at which the merchant is making the commercial decision, particularly before confirming participation in a campaign or additional service.

The platform should provide information that allows the merchant to understand the Baseline TTR, the Scenario TTR, the resulting Incremental TTR, and the estimated net proceeds. The objective is to enable the merchant to assess the economic consequences before committing, rather than discovering the full cost only after the transaction has taken place.

The guidance therefore encourages platforms to place TTR information at relevant decision points, such as product pricing pages, fee information pages, seller dashboards, and, importantly, the screen presented before a merchant confirms participation in a campaign or additional service. Information should be presented clearly and accessibly rather than being obscured in detailed terms and conditions or links that are difficult to locate. (ETDA⁠)

TTR calculation tools:

The guidance also encourages e-marketplaces to provide merchants with a TTR calculation tool that is easy to use and available without an additional charge.

Such a tool could allow a merchant to select a particular product or SKU and enter relevant variables, including the selling price, merchant-funded discounts, campaign participation, and applicable fees. The resulting calculation should enable the merchant to compare the cost of selling under the ordinary arrangement with the cost that would apply if the merchant participates in the proposed campaign or additional service.

The output should show relevant fees in both monetary and percentage terms and provide an estimate of the merchant’s net proceeds. Where sufficient information is available, the tool may also show gross profit and the break-even selling price. The guidance additionally contemplates merchants being able to save or download calculation results for subsequent verification. (ETDA⁠)

This aspect of the guidance may have practical implications beyond simply adding another disclosure to a platform’s terms of service. E-marketplace operators may need to consider whether their merchant interfaces, campaign enrollment processes, fee databases, and internal calculation systems are capable of generating sufficiently accurate TTR information at the point when a merchant makes its decision.

Changes to fees affecting TTR:

The guidance also addresses subsequent changes to the fee structure. Where a platform changes a fee rate, calculation base, collection method, or other condition affecting TTR, it should generally notify merchants at least 30 days in advance.

The information should allow merchants to compare the position before and after the change and understand how the change affects the Baseline TTR and Scenario TTR. This gives merchants an opportunity to assess the commercial consequences and adjust their pricing or participation strategy before the new fee structure applies. (ETDA⁠)

This approach reflects a broader transparency objective: merchants should not merely know that a particular fee has changed, but should also be able to understand how that change affects the overall cost of using the platform.

Transparency after the transaction:

The TTR framework does not end once the merchant has agreed to participate in a campaign. The guidance also encourages transparency after a transaction has been completed.

Merchants should be able to review the fees actually deducted and compare them against the TTR previously estimated. Where the amounts differ, the platform should provide sufficient information to explain the discrepancy. Possible reasons could include the actual use of coupons, product returns, refunds, or changes in the merchant’s status.

ETDA also recommends that calculation histories and actual fee information remain accessible through the platform for at least three months and that merchants be able to save or download relevant information. Annual summaries are also contemplated to assist merchants in evaluating the overall cost of selling through the platform. (ETDA⁠)

A transparency framework, not a fee cap:

An important point is what the TTR guidance does not do. It does not prescribe a maximum commission or impose a ceiling on the amount that an e-marketplace may charge. ETDA describes its purpose as improving the completeness, transparency, comparability, and verifiability of fee information so that merchants can make informed commercial decisions. (ETDA⁠)

The legal status of the instrument should therefore be understood accordingly. ETDA places the TTR guidance within its category of “Best-practice/Self-Regulation” measures rather than mandatory platform rules. (ETDA⁠) The guidance should therefore not be characterized as immediately imposing a statutory obligation on every e-marketplace to implement the TTR model exactly as described.

Nevertheless, the distinction between guidance and mandatory regulation should not obscure its practical importance. The TTR framework provides a detailed regulatory benchmark for how ETDA considers platform fee transparency should operate. E-marketplace operators should therefore consider the guidance when reviewing their fee structures, merchant-facing disclosures, campaign enrollment processes, and supporting IT systems.

Why TTR matters for merchants:

For merchants, the principal benefit of the TTR model is that it changes the focus from individual fee rates to the aggregate economic effect of selling through the platform.

Consider a product with an initial price of THB 1,000 where the merchant bears a THB 100 discount, producing a net product price of THB 900. ETDA illustrates how a Baseline TTR of 12.96% would correspond to approximately THB 116.63 in baseline charges and estimated net proceeds of THB 783.37. If participation in a campaign creates another THB 108 of costs, the Scenario TTR would rise to 24.96%, with the Incremental TTR showing an additional 12 percentage points and estimated net proceeds falling to THB 675.37. (ETDA⁠)

The example illustrates the commercial rationale behind the framework. A merchant considering a campaign should be able to assess not simply whether the campaign may increase sales, but also how much additional revenue or volume would be required to offset the additional platform costs.

Practical implications for e-marketplace operators:

For platform operators, implementation of the TTR framework is potentially a product, compliance, and systems issue rather than merely a matter of revising contractual terms.

Platforms may need to map the different charges imposed on merchants, identify the relevant calculation bases, distinguish baseline costs from campaign-specific or additional costs, and ensure that their systems can calculate and present the resulting TTR accurately. Merchant dashboards and campaign enrollment interfaces may also need to be designed so that relevant information is available before the merchant confirms participation.

Operators should also consider whether their post-transaction records allow merchants to reconcile estimated and actual charges and whether changes to fees can be communicated in a manner that explains their overall TTR impact rather than merely announcing a revised percentage for an individual fee.

For merchants, meanwhile, TTR could become a useful metric for comparing the economic effect of different campaigns and services. In particular, the Incremental TTR provides a relatively direct way of assessing the additional cost of a campaign against its expected contribution to sales.

Key takeaways:

  • ETDA has introduced TTR as a framework for improving transparency over the aggregate fees and expenses borne by merchants selling through e-marketplaces.
  • TTR is divided into Baseline TTR, Scenario TTR, and Incremental TTR, allowing merchants to distinguish ordinary transaction costs from the additional costs associated with campaigns or additional services.
  • The guidance emphasizes disclosure before a merchant commits to a campaign or additional service, rather than relying solely on general fee schedules or contractual terms.
  • E-marketplaces are encouraged to provide accessible TTR calculation tools showing fees, estimated net proceeds, and other relevant financial information in both monetary and percentage terms.
  • Changes affecting TTR should generally be notified to merchants at least 30 days in advance, together with information enabling them to understand the impact of the change.
  • Merchants should be able to compare estimated TTR with fees actually deducted after transactions and access historical fee information.
  • The TTR framework does not impose a cap on platform fees. It is currently presented by ETDA as a best-practice/self-regulatory measure aimed at transparency and informed decision-making rather than direct price regulation.
  • Although not framed as an immediately mandatory fee-control regime, the guidance provides e-marketplace operators with a detailed regulatory benchmark against which their fee disclosure practices and merchant-facing systems can be reviewed.

Author: Panisa Suwanmatajarn, Managing Partner.

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DIP e-Exchange: A New Framework for Accessing and Using IP Data

The Department of Intellectual Property (DIP) has launched DIP e-Exchange, a new platform designed to enable government agencies and private-sector organizations to connect with and exchange intellectual property (IP) information held by the DIP. The initiative goes beyond providing another online search facility. It establishes an application programming interface (API)-based infrastructure through which eligible organizations can potentially integrate official IP information into their own systems and workflows.

The DIP describes the platform as part of its development of an IP data infrastructure that allows information to be exchanged between organizations in a standardized and secure manner. The new system replaces the DIP’s previous API channel for existing participating organizations and is provided without charge. The DIP also emphasizes compliance with government data governance and information security requirements.

From IP Records to Usable Business Data:

The DIP e-Exchange currently provides APIs covering six categories of IP information: copyright, geographical indications, petty patents, design patents, invention patents, and trademarks. The DIP’s announcement indicates that the information available through the system includes, for example, granted or published patent information, trademark and rights-holder information, and information concerning copyright works and persons who have notified copyright information to the DIP.

This is significant because IP registry information has traditionally been approached primarily as information to be searched when a particular legal or commercial need arises. An API-based infrastructure offers a different model. Instead of requiring a user to conduct an individual search and manually incorporate the results into another process, an authorized organization’s system can potentially retrieve relevant information directly from the DIP and use that information within its own digital workflow.

The DIP has identified a broad range of potential applications. These include verifying the existence of IP rights in public- and private-sector transactions, supporting the development of higher-value products and services through IP, assisting IP valuation for SME financing, facilitating research and analysis, and enabling enforcement authorities to verify IP rights more efficiently.

Implications for IP Transactions and Financing:

The new infrastructure could be particularly relevant to transactions in which the existence, ownership, or status of IP rights needs to be verified. IP information is routinely relevant to mergers and acquisitions, investments, licensing, technology transfers, financing arrangements, enforcement actions, and IP due diligence. Where organizations regularly undertake these activities, direct access to official data may allow some verification processes to be incorporated into existing compliance, transaction, or portfolio-management systems.

The potential application to financing is particularly noteworthy. One practical challenge in IP-based financing is obtaining reliable information concerning the underlying asset. The DIP specifically identifies the use of IP information for IP valuation in connection with financial institutions’ lending to SMEs as one potential application of the platform.  Easier access to authoritative registry information could therefore contribute to the information infrastructure necessary for financial institutions and other stakeholders to assess IP assets.

However, data obtained from the DIP should not be regarded as a substitute for legal due diligence. Registry information is only one component of determining the legal and commercial position of an IP asset. Depending on the transaction, separate investigation may still be required regarding matters such as chain of title, licenses, assignments, security interests, contractual restrictions, pending disputes, actual use of trademarks, unregistered rights, and the validity or enforceability of particular rights. The legal significance of information retrieved through the system must therefore be distinguished from the efficiency with which that information can be obtained.

Information Security and Data Governance:

DIP e-Exchange is intended for legal entities in both the public and private sectors whose activities relate to IP and that maintain appropriate information security arrangements. Organizations seeking access are required to register and submit supporting documentation to the DIP.

The supporting documentation identified by the DIP includes a request for data connectivity, an MOU where applicable, the relevant service application form, and either evidence of ISO/IEC 27001 certification or the organization’s information security policies and practices.  The platform’s technical documentation also indicates that API access operates through an authorization token, illustrating that access is controlled rather than being an unrestricted bulk-data facility.

These requirements highlight an important distinction between making IP information available for individual public searches and permitting systematic access to government data through APIs. Once information can be retrieved and processed at scale, issues of cybersecurity, access control, permitted use, data retention, system integrity, and internal accountability become increasingly important.

Organizations considering connection to DIP e-Exchange should therefore approach implementation as both an IP-data project and a data-governance project. Appropriate internal controls may need to address who is authorized to access the system, the purposes for which information may be retrieved, how retrieved information is stored and incorporated into other databases, and how access and use are monitored.

Toward Interoperable IP Infrastructure:

The broader significance of DIP e-Exchange is the movement from digitization toward interoperability in IP administration.

Digitization allows applicants, rights holders, professionals, and members of the public to interact electronically with the DIP. Interoperability goes a step further: it enables official IP information to become part of the digital processes of other organizations. Instead of government data remaining within a standalone database that must be consulted separately, standardized APIs can potentially allow that data to interact with other systems.

This may create opportunities well beyond conventional IP searches. Businesses and service providers could potentially incorporate official IP information into portfolio-management and transaction systems; financial institutions could use relevant data as part of IP valuation and financing processes; researchers could conduct more systematic analysis; and enforcement agencies could verify rights more efficiently. The DIP itself has characterized IP information as capable of supporting public services, policy analysis, and the development of future digital services.

The practical value of DIP e-Exchange will ultimately depend on matters such as the scope and quality of the available data, the frequency with which it is updated, the conditions governing access and use, and the extent to which organizations integrate the APIs into their operational systems. Nevertheless, the platform represents an important change in how official IP information can be accessed and potentially used.

For businesses, financial institutions, technology companies, research organizations, IP professionals, and other organizations that regularly process IP information, the relevant question may increasingly shift from whether official IP information is available online to how authoritative IP data can be securely incorporated into the systems through which legal and commercial decisions are made.

Key Takeaways:

DIP e-Exchange introduces API-based access to official IP information, covering copyright, geographical indications, petty patents, design patents, invention patents, and trademarks.

The potential uses extend beyond conventional registry searches. The DIP identifies transaction verification, IP valuation and financing, research, enforcement, and development of digital services among the intended applications.

API access may facilitate the integration of IP information into organizational workflows, including due diligence, portfolio management, financing, and compliance processes.

Registry data does not replace legal due diligence. Ownership, contractual rights, chain of title, disputes, unregistered rights, and validity or enforceability issues may still require separate investigation.

Information security is a central feature of the framework. Organizations seeking access are expected to demonstrate appropriate information security standards, policies, or practices.

The initiative represents a broader transition toward interoperable IP infrastructure, in which government-held IP information can potentially become part of the digital systems used to make legal, financial, and commercial decisions.

Author: Panisa Suwanmatajarn, Managing Partner.

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Amendments to TCCT Notifications: Modernizing Thailand’s Market Dominance and Merger Control Frameworks

Driven by the rapid transformation of modern trade alongside increasingly complex business operations, concerns regarding unfair market practices and anti-competitive conduct in Thailand have escalated substantially. To address these concerns, the Trade Competition Commission of Thailand (“TCCT”) has drafted three notifications to modernize market oversight and ensure clear, robust legal standards. These Drafts update market dominance criteria and refine merger control concepts by establishing clearer monetary thresholds, including explicit rules on affiliate sales aggregation.

Accordingly, the TCCT has released the following draft notifications (“Drafts”):

1.     Draft Notification on Rules for Determining Business Operators with Market Dominance (“Draft Market Dominance Notification”)

2.     Draft Notification on Rules, Procedures, and Conditions for Seeking Permission and Granting Approval for Business Combinations (No. ..) B.E. …. (“Draft Merger Approval Notification”)

3.     Draft Notification on Rules, Procedures, and Conditions for Reporting the Results of Business Combinations (No. ..) B.E. …. (“Draft Merger Reporting Notification”)

These Drafts, presently open for public feedback between September 22 and October 21, 2026, represent a significant update to Thailand’s trade competition and merger control framework. By revising market dominance criteria, refining the definition of a monopoly, and updating thresholds for mergers that may significantly reduce competition, these changes aim to eliminate regulatory ambiguity, close corporate loopholes regarding sales aggregation across affiliated entities, adapt to modern business models, and foster fair market competition.

Key Objectives

1. Draft Market Dominance Notification

·        Repeal of the Previous Notification

This Draft explicitly repeals the Notification of the TCCT regarding Criteria for Determining Business Operators with Market Dominance, dated November 10, B.E. 2568 (2025).

·        Revised Quantitative Thresholds for Market Dominance

The Draft mandates that a business operator shall be regarded as holding market dominance if it meets either of the following quantitative conditions:

o   Single Entity: A single operator in any product or service market that commanded a market share of 33% or higher and generated sales revenue of 500 million THB or more in the preceding year.

o   Two Entities Combined: Any two operators in a given market that held a combined market share of 75% or higher in the preceding year. However, this rule exempts any operator within the pair whose individual annual sales were below 500 million THB or whose market share was less than 10%.

·        Aggregation of Market Share for Corporate Affiliates

The proposed provision directs the authority to aggregate the market shares and sales revenues of business entities sharing policy-level management or controlling power, explicitly declaring all affiliated entities within such a group as dominant operators.

·        Qualitative Assessment Criteria for Dynamic and Digital Platform Markets

The proposed amendments exempt dynamic markets—such as rapidly evolving industries, short-term supply/demand fluctuating markets, and digital platforms—from the quantitative thresholds outlined above. Instead, regulators are instructed to determine dominance using qualitative metrics, including barriers to market entry, buyer power, and relevant regulatory frameworks.

2. Draft Merger Approval Notification

·             Redefining “Monopoly”

The TCCT has revised the definition of “Monopoly” under the Notification of the TCCT on Rules, Procedures, and Conditions for Seeking Permission and Granting Approval for Business Combinations B.E. 2561 (2018). The new provision combines an annual sales threshold of 500 million THB or more with the existing qualitative criteria of single-operator price and output control.

3. Draft Merger Reporting Notification

·          Redefining “Mergers that May Significantly Reduce Competition”

The Draft Notification updates the definition of mergers that significantly reduce competition under the Notification of the TCCT on Rules, Procedures, and Conditions for Reporting the Results of Business Combinations B.E. 2561 (2018). The revised rule establishes a combined annual sales threshold of 500 million THB or more for transactions that do not create a monopoly or dominance. Furthermore, it explicitly directs the authority to aggregate sales revenues from all policy-linked or common-control affiliates.

Implementation and Public Participation

These proposed amendments mark an important milestone for competition regulation in Thailand. It is crucial that all stakeholders—including businesses, industry associations, and consumer advocates—thoroughly examine the text and submit insightful feedback while the consultation window remains open. Direct involvement from all sectors will play a pivotal role in shaping a balanced regulatory environment that aligns rigorous oversight with commercial realities.

Conclusion

The proposed amendments to the TCCT notifications mark a pivotal shift toward a more transparent, predictable, and modern trade competition framework in Thailand. By establishing clear monetary thresholds of 500 million THB, mandating sales aggregation across corporate affiliates, and introducing qualitative evaluations for dynamic digital markets, these Drafts effectively close long-standing regulatory loopholes. Ultimately, this comprehensive reform balances rigorous antitrust oversight with practical commercial realities, fostering a fair competitive landscape while strengthening long-term consumer welfare.

Author: Panisa Suwanmatajarn, Managing Partner.

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Criteria and Conditions for Allowing Foreign Nationals to Use Automated Passport Control Channels

Background

The Immigration Bureau introduced Automated Passport Control Channels under the Order No. 322/2566 (the “Previous Order”), effective 15 December 2023, to support tourism and improve immigration processing efficiency.

However, the original framework was relatively narrow in scope, covering only a limited group of foreign nationals and restricting outbound automated processing to Suvarnabhumi Airport. To enhance accessibility and accommodate a wider range of travelers, the Immigration Bureau subsequently issued the Order No. 196/2569 (the “Current Order”), which substantially expands the scope of the Automated Passport Control System.

Immigration Bureau Order No. 196/2569

To further facilitate immigration clearance for foreign travelers, the Immigration Bureau issued the Current Order, effective on 24 August 2026. The Current Order significantly expands access to Automated Passport Control Channels by broadening eligible nationalities, visa categories, and airport checkpoints. Here is what has been changed compared to the previous order.

  1. Expanded Eligible Nationalities

The most significant change is the expansion of eligible nationalities from only Singapore and Hong Kong under the Previous Order to 33 countries and territories under the Current Order.

The expanded list now includes major business and tourism markets such as the United Kingdom, Japan, South Korea, Australia, New Zealand, Germany, France, Switzerland, Italy, the Netherlands, Sweden, Norway, Denmark, Finland, Belgium, Austria, Canada, and Singapore.

As a result, a substantially larger number of foreign travelers are now eligible to use Automated Passport Control Channels when entering and departing Thailand.

  • Expanded Visa Eligibility

The Previous Order primarily limited access to permanent residents, diplomats, government representatives, and certain designated individuals.

Under the Current Order, eligibility has been extended to holders of specified Non-Immigrant Visas as listed in its Appendix, covering a wider range of foreign nationals residing, working, studying, investing, or living with family members in Thailand.

  • Expanded Airport Access

Under the Previous Order:

  • Inbound automated channels were available only to a limited group of foreign nationals and specific type of passport holders.
  • Outbound automated channels were available only at Suvarnabhumi Airport.

Under the Current Order:

  • Eligible foreign nationals as listed in its Appendix can use automated channels for both inbound and outbound travel.
  • Access is available at any international airport equipped with the Automated Passport Control System.
  • Operational Improvements

The Current Order also introduces procedures enabling immigration officers to promptly correct minor system errors, including issues related to visa classification, period-of-stay records, and automated overstay alerts, thereby helping to reduce delays and unnecessary processing.

  • Broader Coverage of Eligible Travelers

The Current Order also broadens eligibility to include:

  • Business: employees, executives, assignees, and investors;
  • Education: teachers, researchers, and students;
  • Family: spouses, parents, children, and other qualifying family members of Thai nationals, permanent residents, and eligible foreign residents.  

It is crucial to note that each criterion is evaluated independently. Therefore, if a foreigner fits into one of the eligible groups (such as holding a qualifying visa or belonging to an eligible nationality), they will be allowed to use the automated channels

Practical Examples

  1. Long-Term Business Professionals and Expatriates Holding Non-Immigrant “B” Visas

Under the Previous Order:

  • Inbound: No access to the Automated Passport Control System was allowed; even senior executives of multinational companies and citizens of major economies such as the United States, the United Kingdom, Japan, and China. They  were required to use manual immigration counters.
  • Outbound: The Automated Passport Control System is available only at Suvarnabhumi Airport.

Under the Current Order:

  • Inbound and Outbound: It is accessible at any international airport equipped with the Automated Passport Control Channels, provided the traveler qualifies under the Appendix of the Current Order and holds a valid re-entry permit where required.
  • Short-Term Business Travelers and Tourists

Under the Previous Order:

  • Inbound: No access to the Automated Passport Control System was allowed, except for Singaporean and Hong Kong passport holders.
  • Outbound: The Automated Passport Control System is available only at Suvarnabhumi Airport.

Under the Current Order:

  • Inbound and Outbound: Eligible travelers from countries listed in the Appendix to the Current Order, including the United States, Japan, China, and the United Kingdom, can use Automated Passport Control Channels at any international airport equipped with the Automated Passport Control System.

Key Takeaways

  • Significant Expansion: Eligibility has increased from only two nationalities to 33 countries and territories under the Current Order.
  • Broader Access: Business travelers, expatriates, investors, academics, students, and family-based visa holders can now benefit from automated immigration processing.
  • Nationwide Availability: Automated outbound processing is no longer limited to Suvarnabhumi Airport, and it is now being used at any international airport equipped with the system.
  • Improved Efficiency: Immigration officers are now authorized to resolve minor system errors immediately, helping to reduce delays and unnecessary procedures.

Author: Panisa Suwanmatajarn, Managing Partner.

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Social Commerce Overhaul: From Seller Verification to Influencer Accountability

The regulatory gap created by social commerce:

Social commerce has blurred many of the distinctions on which traditional e-commerce regulation was built. A consumer may discover a product through an influencer, encounter promotional content on a social-media platform, communicate directly with a seller through the same platform, and complete the purchase without ever visiting a conventional online marketplace. The seller, the person promoting the product, the person paying for the advertisement, and the platform carrying the content may all be different parties. This structure creates a regulatory challenge because consumer protection laws have traditionally focused on businesses supplying goods or services and unlawful advertising, while digital-platform regulation has focused principally on platform operators. Social commerce sits between these regimes. Recent regulatory initiatives indicate that this gap is gradually being addressed—not through a single “social commerce” law, but through complementary regulatory work-streams involving the Electronic Transactions Development Agency (ETDA) and the Office of the Consumer Protection Board (OCPB).

ETDA: From online marketplaces to identifying sellers and advertisers

The regulatory framework for digital commerce has already moved beyond conventional marketplace websites. Under the Digital Platform Services (DPS) framework, ETDA regulates qualifying digital platform services and has progressively developed requirements and guidance concerning online marketplaces, product and seller information, advertising, notice-and-takedown mechanisms, and other aspects of platform governance. Social media is increasingly relevant to this framework because commercial activity can take place within services that were not originally designed as conventional marketplaces. ETDA has also identified social commerce as an area requiring further regulatory attention.

A particularly important development is the increasing emphasis on the identity and traceability of sellers and advertisers. ETDA’s existing advertising guidance recommends that platforms establish procedures for checking advertiser information and verifying identity, maintain relevant advertiser records, and use mechanisms such as watchlists, blacklists, and whitelists. It also addresses screening advertisements before publication and monitoring them afterward through reporting and flagging mechanisms. ETDA’s developing measures for social-media platforms build on this approach by contemplating risk-based identification and verification of users, sellers, and persons placing advertisements. The underlying regulatory objective is increasingly clear: commercial activity conducted through social media should not permit the persons behind a seller account or paid advertisement to remain effectively unidentifiable. For social-commerce businesses, advertiser and seller identification may therefore become an increasingly important part of the platform compliance infrastructure.

OCPB: Bringing influencers into the consumer-protection framework

A parallel development is occurring under consumer protection law. The OCPB has proposed a substantial amendment to the Consumer Protection Act aimed at modernizing the framework for digital commerce and contemporary advertising practices. One of its significant features is the proposed expansion of responsibility within the advertising ecosystem, including persons hired to advertise goods or services. If enacted in its proposed form, this could bring influencers, content creators, and other persons engaged to promote products more directly within the statutory consumer-protection framework. This is particularly important for influencer marketing, where the traditional distinction between an advertiser and the medium carrying an advertisement can be difficult to maintain. Influencers may create promotional content themselves, demonstrate products, repeat claims supplied by brands, integrate commercial messages into personal recommendations or entertainment, provide purchasing links, and participate in affiliate arrangements. The person communicating the advertising message can therefore play a much more active role in influencing the consumer’s decision than a conventional advertising medium.

The OCPB initiative addresses a different part of the social-commerce problem from ETDA’s platform regulation. ETDA’s developing framework focuses substantially on the platform and the identification and traceability of persons using it for commercial activity, while the OCPB proposal strengthens responsibility for the consumer-facing commercial message and the persons participating in communicating that message. The proposed Consumer Protection Act amendment remains draft legislation, so its final scope may change during the legislative process. Nevertheless, its direction is important for brands, agencies, influencers, and content creators because compliance may increasingly extend beyond the business that ultimately supplies the product.

Two regulatory layers across one transaction:

The interaction between these initiatives is perhaps the most significant feature of the emerging framework. Consider a typical social-commerce transaction: a brand engages an influencer to promote a product; promotional content appears on a social-media service; the content directs consumers to a seller operating through that platform or another online channel; and a consumer purchases the product after relying on representations contained in the promotional content. Different regulatory obligations can potentially attach at several points along that chain. The platform may increasingly be expected to identify sellers and advertisers, retain information permitting them to be traced, screen certain advertisements, monitor problematic content, and provide mechanisms for responding to complaints or unlawful activity. The seller or brand remains subject to applicable consumer-protection and product-specific requirements. At the same time, the OCPB amendment could place influencers and other persons hired to advertise more directly within the consumer-protection regime.

The emerging division can therefore be summarized as follows: ETDA is developing the infrastructure of accountability, while OCPB is extending accountability through the advertising chain. The distinction is not absolute. ETDA’s role extends beyond identity verification into advertising screening and monitoring, while OCPB already exercises broad authority over consumer-facing advertising. The regulatory regimes should therefore be understood as overlapping layers rather than completely separate jurisdictions. Together, however, they address a central weakness of social commerce: the difficulty of identifying and allocating responsibility among the multiple parties involved between the creation of an advertisement and the eventual consumer transaction.

From regulating the seller to regulating the commercial chain:

These developments point toward a broader change in the regulation of digital commerce. Traditional e-commerce could largely be conceptualized around the consumer, the online seller, and the marketplace facilitating the transaction. Social commerce introduces additional actors: platforms distribute commercial content, advertisers may be different from sellers, influencers and content creators communicate product claims, and transactions can move from public social-media content into private messaging or other channels. The emerging regulatory framework increasingly follows this entire chain. Instead of asking only who sold the product, regulators are developing mechanisms that can also address who promoted it, who paid for or arranged the advertisement, who communicated the claims, and which platform facilitated the commercial interaction.

For businesses, social-commerce compliance should therefore no longer be treated solely as an issue for the legal entity making the final sale. Brands will need to consider how influencers and advertisers are selected, instructed, and supervised; whether advertising and product claims can be substantiated; what information must be supplied to platforms; and how responsibility is allocated contractually among brands, agencies, influencers, and other participants. Influencer and advertising agreements may require greater attention to regulatory compliance, disclosure and approval procedures, substantiation of claims, record-keeping, corrective measures, content removal, and cooperation with platforms or regulators. Platforms face a different compliance trajectory, with increasing expectations around identification, verification, screening, monitoring, traceability, and intervention where commercial activity creates risks for consumers.

An emerging social-commerce framework:

There is not yet a single comprehensive regulatory instrument governing social commerce. Instead, a network of complementary rules is emerging to regulate different stages of the same commercial activity. ETDA’s DPS framework and related initiatives provide the platform-governance layer; developing seller and advertiser verification requirements strengthen identification and traceability; and the proposed Consumer Protection Act amendment would strengthen the consumer-facing advertising layer by potentially extending responsibility more directly to influencers and other participants in the advertising process. Viewed together, these developments suggest that social commerce is moving toward end-to-end accountability—from the identity behind an advertisement to the person delivering the commercial message and ultimately to the transaction with the consumer.

Key Takeaways:

The social-commerce regulatory framework is developing through several complementary initiatives rather than one dedicated law. ETDA is strengthening the platform side of the equation, particularly the identification and traceability of sellers and advertisers, while OCPB is seeking to strengthen responsibility on the consumer-facing side, including the role of influencers and other persons engaged in advertising. Businesses operating through social commerce should therefore look beyond seller compliance alone. Brands, sellers, advertising agencies, influencers, content creators, and digital platforms increasingly form parts of the same regulated commercial chain, and the compliance focus is shifting from responsibility for the final sale toward accountability throughout the process by which a consumer encounters, evaluates, and purchases a product online.

Author: Panisa Suwanmatajarn, Managing Partner.

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Public Procurement Reform Would Shift Focus Beyond Price

The Cabinet has approved in principle a significant amendment to the Public Procurement and Supplies Administration Act that could materially change how government agencies evaluate bidders and manage contractor performance. The proposal forms part of a broader legislative reform package and is intended to move public procurement away from an approach perceived as placing excessive emphasis on the lowest price. Importantly, the amendment remains a draft Act. Cabinet approval does not itself amend the existing procurement rules, and the proposal must proceed through the legislative process before becoming binding.

Greater Emphasis on Value and Performance:

A central feature of the proposed reform is a shift in supplier selection toward the interests of the procuring government agency, the purpose for which the goods or services will be used, and the bidder’s ability to perform the contract. The Government has previously explained the policy objective as enabling government agencies to obtain supplies and services that offer appropriate value and quality rather than evaluating procurement predominantly by reference to the lowest price.

This could be particularly significant for procurements involving technology, cloud services, cybersecurity, healthcare products, infrastructure, consulting and other sophisticated services. Suppliers whose offerings involve higher initial prices but stronger technical capabilities, security, reliability, service levels or lifecycle value may have greater scope to differentiate their proposals if the final legislation and implementing rules translate the policy into broader evaluation criteria. Businesses should nevertheless distinguish between the Government’s stated policy direction and the criteria that will ultimately become legally applicable once the legislation and related rules are finalized.

Stronger Consequences for Poor Performance:

The draft would also strengthen the Government’s ability to deal with contractors that fail to perform satisfactorily. The proposed amendments expand the circumstances in which contracts may be terminated and contractors may be designated as defaulting contractors where performance is defective or involves serious errors that cause, or could cause, damage to government agencies, the public, property or the environment. The proposal would also give heads of contracting government agencies greater authority to designate bidders or contractors as defaulting contractors, with the relevant information subsequently circulated through the government procurement system.

These changes could substantially increase the consequences of contract-performance failures. Government contractors should therefore consider strengthening project governance, acceptance procedures, quality controls, subcontractor management and documentation of contractual performance. For technology and service contracts in particular, careful documentation of service levels, testing, acceptance criteria, incident management and responsibility for delays may become increasingly important where poor performance could potentially lead not only to contractual remedies but also to restrictions on participation in future government procurement.

Procurement Appeals May Become More Costly:

Another significant element is the proposed introduction of measures intended to discourage procurement appeals made without reasonable grounds. The Government has indicated that frequent appeals can delay procurement projects and that the amendment is intended to reduce inappropriate use of the appeal mechanism. The contemplated framework includes security requirements for certain procurement appeals.

The details will be important. An appropriately calibrated security mechanism could discourage tactical challenges intended primarily to delay contract awards. However, if the required security is substantial, it could also affect the practical ability of smaller bidders to challenge procurement decisions. Businesses participating regularly in government tenders should therefore monitor the final provisions governing the amount of security, circumstances in which it must be provided, and conditions for its return or forfeiture.

Particular Relevance to Technology Procurement:

The move away from predominantly price-based evaluation could be especially relevant to government technology procurement. Technology solutions are often difficult to compare meaningfully by acquisition price alone because cybersecurity, resilience, interoperability, data-management capability, service levels, scalability and lifecycle costs can materially affect the overall value and risk of a project.

The proposed reform could provide a stronger statutory foundation for procurement approaches that recognize these factors. However, the Cabinet materials do not themselves establish cybersecurity certification, data-management capability, SLA performance or interoperability as mandatory evaluation criteria. Whether and how such considerations become part of procurement evaluations will depend on the final legislation, implementing regulations, procurement specifications and practices adopted by individual government agencies.

What Businesses Should Do Now:

Because the proposal is not yet binding, suppliers do not need to change their tendering practices solely as a result of Cabinet approval. Businesses that regularly contract with government agencies should nevertheless follow the legislative process and begin considering how their procurement strategies may need to evolve. In particular, suppliers may wish to strengthen evidence demonstrating technical capability and value beyond price, review internal controls for government-contract performance, maintain detailed records supporting compliance with contractual obligations, and reassess procedures for deciding whether and when to challenge procurement decisions.

Key Takeaways:

The proposed amendment represents a potentially important change in public procurement policy: from an emphasis on price toward a broader assessment of value, suitability and contractor capability. At the same time, the reform would increase the potential consequences of defective performance and could make procurement appeals more disciplined through security requirements.

For businesses selling sophisticated products and services to government agencies, the reform could create opportunities to compete more effectively on quality, technical capability and long-term value rather than price alone. Those opportunities would come with increased performance and compliance risk. For now, however, the existing procurement regime remains applicable, and businesses should monitor the draft as it proceeds through the legislative process.

Author: Panisa Suwanmatajarn, Managing Partner.

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Substantive Agreement Reached on the Thailand–United States Agreement on Reciprocal Trade (ART)

Introduction

On 1 September 2026, Thailand and the United States reached agreement on the substance of an Agreement on Reciprocal Trade (the “ART”) in Washington, D.C. Technical details remain outstanding, and the ART has not been signed.

The tariff rate applicable to Thai goods is likewise unsettled. A Section 301 investigation into structural excess capacity remains before the United States Trade Representative (“USTR”), and the final rate will depend on its outcome.

The 12.5 percent rate now in force did not simply replace an earlier rate. It is the latest in a sequence of four measures, each resting on a different legal footing, and in each case the preceding measure ceased to apply because its statutory basis lapsed, was struck down, or was superseded by negotiation.

How One Measure Replaced Another

  • Reciprocal tariffs under IEEPA: Thailand was subject to a reciprocal tariff of 36 percent imposed under the International Emergency Economic Powers Act (“IEEPA”). Following a joint statement with the United States, that rate was reduced to 19 percent, announced on 1 August 2025, which in turn led to the announcement of the ART framework on 26 October 2025.
  • The Supreme Court ruling: On 20 February 2026, the United States Supreme Court held, by six votes to three, that IEEPA does not confer authority on the President to impose tariffs. The reciprocal tariff regime fell away, including the 19 percent rate applied to Thailand.
  • Section 122: The United States then imposed a temporary tariff of 10 percent on all countries under Section 122 of the Trade Act of 1974. That authority carries a statutory limit of 150 days, and the measure expired on 24 July 2026.
  • Section 301: On the same day, the USTR announced tariffs under Section 301 covering 60 trading partners. Thailand was placed in the 12.5 percent band under the forced labor case. Cambodia, Indonesia and Malaysia were placed at 10 percent, leaving Thai exporters with a cost disadvantage of approximately 2.5 percentage points against those regional competitors.

Each step rests on a different statute. A rate imposed under one authority is not comparable with a rate imposed under another, even where the percentage is identical.

Where the Rate Stands Now

Section 301 does not produce a single rate. It proceeds case by case, and the resulting rates accumulate.

  • Case 1 — Forced labor: Determined, producing the 12.5 percent rate now in force.
  • Case 2 — Structural excess capacity: Pending, no determination has been issued.

The Department of Foreign Trade (“DFT”) expects the two cases together to result in a combined rate of no more than 19 to 20 percent. With Case 1 at 12.5 percent, this implies approximately 6.5 percent from Case 2.

It is at this point that the two figures of 19 percent must be kept distinct. The 19 percent applied before February 2026 was a single reciprocal tariff imposed under IEEPA and no longer exists. A figure of 19 percent today refers to the two Section 301 cases taken together, under an entirely different statute. The same number denotes a different measure.

What Was Agreed on 1 September

The Deputy Prime Minister and Minister of Commerce met the USTR and the Deputy USTR in Washington, D.C. on 1 September 2026, following four days of technical negotiation conducted by Thailand’s representatives.

The parties agreed on the substance of the ART, and the negotiating teams on both sides were directed to finalize the remaining technical details. The ART addresses non-tariff barriers, digital trade, and commercial opportunities. The United States indicated that the rate arising from the pending Section 301 excess capacity investigation would be set at a fair and competitive level.

Why the ART Does Not Settle the Rate

The Ministry of Commerce (“MOC”) confirmed on 7 September 2026 that agreement on the substance of the ART does not fix the final tariff rate, because the Section 301 excess capacity investigation remains under consideration.

Two distinct instruments are involved:

  • The ART is a bilateral agreement between Thailand and the United States.
  • A Section 301 determination is a unilateral United States administrative process.

Concluding the former does not conclude the latter.

The two meet at a single point. The USTR set the Case 1 rate at 10 percent for economies that already prohibit imports of goods made with forced labor, that operate a partial regime having that effect, or that have committed through an ART to impose and enforce such a prohibition. Thailand satisfies none of these conditions and therefore remains at 12.5 percent.

What lowers the rate is the forced labor commitment that an ART carries, not the ART itself. An agreement without such a commitment would not qualify, and an agreement containing one would still leave Case 2 open.

What Remains Outstanding

Three matters remain unresolved.

  • The Case 2 determination has not been issued, and no date has been announced. Until it is, the rate applicable to Thai goods is not fixed.
  • The technical annexes to the ART have not been finalized, and the agreement has not been signed.
  • The commercial terms of the ART have not been published. Commitments on imports of United States goods will bear on Thailand’s trade and current account balances.

Key Takeaways

  • The tariff applicable to Thai goods has been replaced three times since 2025, moving from 36 percent and then 19 percent under IEEPA, to 10 percent under Section 122, to 12.5 percent under Section 301 to date.
  • Rates imposed under different statutes are not comparable, even where the percentage is identical.
  • Section 301 rates accumulate across cases. Case 1 (forced labor) produced the current 12.5 percent. Case 2 (excess capacity) is pending.
  • A combined figure of 19 to 20 percent refers to both Section 301 cases together, and not to the former IEEPA rate of 19 percent.
  • Agreement on the substance of the ART was reached on 1 September 2026. Technical details remain outstanding and the ART is not signed.
  • An ART containing a forced labor undertaking would move Case 1 from 12.5 percent to 10 percent, but would not determine Case 2. Thailand remains at 12.5 percent, and the MOC confirmed on 7 September 2026 that the final rate awaits that determination.

Author: Panisa Suwanmatajarn, Managing Partner.

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