Tag: Industry

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Public Transportation: Thailand’s Draft Management of Joint Ticket System Act

Thailand’s transportation system, comprising both public and private operators, has long been plagued by inconsistent fare collection methods, creating a burden of complexity and inefficiency for its citizens. In response, the Office of Transport and Traffic Policy and Planning (OTP) under the Ministry of Transport (MOT) has introduced the Draft Management of Joint Ticket System Act B.E. …. (“Draft”). This aims to streamline public transport through a unified payment system and standardized fare rates, benefiting both citizens and operators. Public hearings for the Draft are open until 27 December 2024.

Key Issues of the Draft are as follows:

  1. Centralizing Technology Standards for Joint Tickets:
    • Goal: To ensure seamless integration across public and private operators.
    • Impact: To provide a consistent and efficient user experience for all passengers.
  2. Applying Uniform Fare Rates:
    • Goal: To eliminate fare discrepancies across different operators.
    • Impact:  To ensures fairness for citizens and promotes equal participation among operators.
  3. Promoting a Development Fund:
    • Goal: To support operators in transitioning to the joint ticket system.
    • Impact: To provide funding for initial setup and ongoing improvements and fostering innovation.
  4. Introducing Voluntary Licensing:
    • Goal: To incentivize operators to join the joint ticket system.
    • Impact: To offer financial and promotional support and encouraging collaboration across sectors.
  5. Enabling Enforcement through a Royal Decree:
    • Goal: To ensure critical operators align with the joint ticket system when necessary.
    • Impact: To maintain consistency and efficiency across the transportation network.
arial view photo of cars

Benefits of the Joint Ticket System

  1. Economic Growth:
    • Simplified fare systems are expected to boost public transport usage, leading to higher domestic revenue.
  2. Technological Advancement:
    • A unified infrastructure allows operators to adopt cutting-edge solutions, positioning Thailand as a regional leader in smart transit.
  3. Environmental Sustainability:
    • Enhanced public transport usage, reduces reliance on personal vehicles and thereby lowering greenhouse gas emissions.

Entrepreneurial Opportunities and Benefits

  1. Access to Funding:
    • The dedicated development fund offers financial support for innovation, system upgrades, and initial investments, reducing the financial burden on operators.
  2. Market Competitiveness:
    • Participation in the unified system allows private operators to expand their customer base and build trust through standardized services.
  3. Technology Integration:
    • Operators can adopt modern systems supported by the OTP, ensuring alignment with cutting-edge technological standards.
  4. Public-Private Collaboration:
    • The Draft encourages closer ties between public authorities and private operators, fostering long-term partnerships and mutual growth.

Conclusion

The Draft is poised to transform Thailand’s public transport network, creating significant opportunities for operators and offering greater convenience for citizens. By addressing inefficiencies, encouraging investment, and fostering collaboration, the Draft ensures sustainable growth and innovation to the country. Entrepreneurs stand to benefit from financial incentives, market expansion, and alignment with technological standards, making the win-win situation for all stakeholders. Through this initiative, Thailand solidifies its role as a forward-thinking leader in public transportation.

close up of people at a subway station entrance

Key Takeaways

  • Unified Ticketing System: Streamlines fare collection across all public transport modes.
  • Economic and Environmental Benefits: Increased public transport usage leads to economic growth and reduced emissions of greenhouse gas.
  • Support for Operators: Financial and technological support for operators to integrate into the new system.
  • Public-Private Partnerships: Enhanced collaboration between public authorities and private operators.

Author: Panisa Suwanmatajarn, Managing Partner.

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Tax System Reform: Thailand Adopts Pillar 2 in New Draft Emergency Decrees

Introduction

Thailand is actively pursuing membership in the Organisation for Economic Co-Operation and Development (“OECD”) to foster economic and social development and enhance its global standing. As part of this effort, Thailand is aligning its tax system with OECD standards by adopting Pillar 2. Pillar 2 comprises tax rules implemented by the OECD to prevent Multinational Enterprises (“MNEs”) from avoiding higher tax rates by shifting profits to low-tax jurisdictions.

Pillar 2 applies to MNEs whose consolidated financial statements show annual profits of €750 million (approximately THB 28 billion) or more. It imposes a 15% global minimum tax rate on MNEs’ profits, known as the “Top-up Tax.”

Two New Drafts for the Implementation of Pillar 2

To implement these rules, Thailand must enact domestic legislation to create a concrete legal framework for public compliance. Due to time constraints, Thailand is expediting the implementation process through emergency decrees rather than regular legislative acts. On 11 December 2024, the Cabinet approved two draft emergency decrees which are:

  1. The Draft Emergency Decree on Top-up Tax B.E. …. proposed by the Ministry of Finance: This draft outlines the rules and procedures for collecting top-up tax from legal entities within MNE groups whose consolidated financial statements show total revenue of at least €750 million (approximately THB 28 billion).
  2. The Draft Emergency Decree Amending the National Competitiveness Enhancement for Targeted Industries Act (No. ..) B.E. …. proposed by the Board of Investment: This draft amends existing law to address Pillar 2 by introducing measures to regulate the utilization of both tax and non-tax benefits.
accountant counting money

Both drafts will be submitted to the Office of the Council of State for detailed review. Upon approval, they will be proposed to the Cabinet again and then to the House of Representatives. The public will be notified of the final versions before they become effective, with enforcement projected for 2025. These changes are expected to generate additional government revenue, ensure fair competition, and provide clearer guidelines for investors regarding their tax responsibilities.

Conclusion

Thailand is taking a significant step toward aligning its tax system with global standards. By adopting the OECD’s Pillar 2, Thailand aims to create a more equitable tax environment. The implementation through draft royal decrees introduces top-up tax and measures to regulate tax and non-tax incentives for targeted industries. These changes will contribute to a more level playing field for businesses, attract foreign investment, and ensure MNEs pay their fair share of taxes. The implementation is expected to strengthen Thailand’s economic competitiveness and sustainable development. Stakeholders should closely monitor the draft emergency decrees to prepare for the new laws taking effect in 2025.

Key Takeaways

  • Thailand is implementing the OECD’s Pillar 2 through 2 emergency decrees as part of its accession for OECD membership.
  • The new tax framework applies to MNEs with annual consolidated revenues of €750 million or more.
  • Key measures include:
    • Introduction of a 15% global minimum tax rate
    • New regulations for tax and non-tax benefits of Board of Investment’s targeted industries
    • Enhanced monitoring of tax compliance for large MNEs
  • Timeline for Implementation:
    • Cabinet’s approval was obtained on 11 December 2024
    • Currently under review by the Office of the Council of State
    • Expected enforcement to begin in 2025
  • Business Impact:
    • Affected companies will need to reassess their tax planning strategies
    • Increased tax transparency requirements
    • Potential adjustments to investment structures and corporate operations
  • For companies operating in Thailand, it is crucial to:
    • Monitor regulatory updates
    • Review current tax structures and benefits
    • Prepare internal systems for compliance with the new requirements
    • Consider seeking professional advice for tax planning under the new regime

Author: Panisa Suwanmatajarn, Managing Partner.

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Waste Management: Bangkok Strengthens Regulations to Enhance Sustainability

Bangkok Metropolitan Administration initiated a public hearing on a new draft regulation aimed at improving waste management at the source. This regulation addresses the city’s growing waste problem by closing gaps in current practices and setting clear, sustainable standards.

Applicability

The draft regulation will apply to:

  • Restaurants and places for preparing, storing and selling food and beverages
  • Shopping malls and department stores
  • Hotels
  • Educational institutions (schools, colleges and universities)
  • Government offices and state enterprises
  • Markets
  • Large buildings producing over 2 cubic meters of waste daily
  • Residential buildings with 80+ rooms or over 4,000 square meters of usable space
  • Industrial plants
  • Land developers or juristic persons of housing estates

Waste Separation Requirements

Businesses must separate waste into four categories:

  • Organic Waste: Food scraps, garden waste, and other biodegradable materials, which should be composted or processed to reduce landfill waste.
  • Recyclable Waste: Plastics, paper, glass, and metals, which should be sorted cleanly to support recycling and conserve resources.
  • Toxic/Hazardous Waste: Batteries, chemicals, and e-waste, which must be stored and disposed of properly to avoid environmental and health risks.
  • General Waste: Non-recyclable materials that must be managed responsibly to minimize their impact.
recyclable glass items in a box

Key Waste Management Guidelines

To comply with the new regulation, businesses must implement the following management measures:

  • Storage: Provide safe, secure, and well-ventilated waste storage areas that can handle the volume of waste generated.
  • Collection and Disposal: Use appropriate methods for non-separable waste to avoid pollution and health hazards.
  • Leachate Management: Ensure proper collection and treatment of leachate to prevent contamination.
  • Pest Control: Implement measures to prevent infestations and maintain cleanliness.
  • Compliance: Follow all local and national regulations to avoid penalties.

Implications for Affected Businesses

Businesses such as hotels, educational institutions, shopping malls, department stores, and industrial plants will need to invest in waste management systems. Hotels and educational institutions must designate areas for composting organic waste and ensure that recyclable materials like plastics and glass are sorted. Shopping malls and department stores will need to set up waste storage and disposal systems to manage large volumes of waste. Industrial plants may require specialized methods for handling hazardous waste. Compliance will require ongoing monitoring, and businesses may need to engage in specialized waste management services.

aerial view of industrial recycling yard in chattanooga

Key Takeaways

  • Wide Reach: The regulations affect many types of businesses and residential buildings.
  • Mandatory Waste Separation: Businesses must separate waste into organic, recyclable, hazardous, and general categories.
  • Defined Disposal Standards: Clear guidelines for waste storage, collection, and disposal ensure better waste management.
  • Sustainability Focus: These regulations aim to reduce waste, promote recycling, and move Bangkok toward sustainability.
  • Increased Responsibility: Businesses must take proactive steps to comply and avoid penalties.

Author: Panisa Suwanmatajarn, Managing Partner.

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Reforming Industrial Licensing: New Approach to Factory Regulation and Environmental Compliance

Introduction:

The Department of Industrial Works (DIW), Ministry of Industry in Thailand has initiated a comprehensive reform of industrial licensing and factory management processes, signaling a significant shift towards more stringent environmental and operational standards. This strategic approach aims to enhance industrial governance, protect environmental interests, and promote responsible business practices.

Key Regulatory Reforms:

Licensing Mechanism Transformation

The DIW has implemented a multi-faceted approach to industrial licensing that focuses on:

  1. Streamlined Approval Processes
    • Simplifying factory operation permit issuance
    • Reducing administrative procedures
    • Accelerating permit processing times
  2. Merit-Based Support System
    • Prioritizing and supporting responsible industrial operators
    • Providing expedited consultations and services
    • Creating preferential pathways for compliant businesses

Blacklist Mechanism for Non-Compliant Operators:

The DIW will establish a comprehensive blacklist targeting industrial operators with problematic histories, including:

  • Companies with previous legal violations
  • Entities with environmental pollution records
  • Operators exceeding standard emission levels
  • Businesses with improper industrial waste management
  • Entities previously ordered to implement corrective measures
man walking on roof top

Rigorous Evaluation Criteria:

Blacklisted operators will undergo extensive scrutiny, including:

  • Historical operational performance assessment
  • Facility location analysis
  • Machinery installation review
  • Production safety protocols
  • Pollution treatment system standards
  • Waste management efficiency
  • Legal compliance verification

Focus on High-Risk Industrial Sectors:

Special attention will be directed towards high-risk industrial categories, particularly those involved in waste treatment and processing, such as:

  • Slag melting facilities
  • Industrial waste management plants (Categories 101, 105, 106)
  • Hazardous and non-hazardous waste processing facilities
  • Electronic waste recycling units
  • Chemical waste treatment centers

Regulatory Objectives:

The reforms aim to achieve the following strategic goals:

  1. Ensure clean and transparent industrial establishment processes
  2. Promote environmentally friendly industrial growth
  3. Balance economic development with social and environmental considerations
  4. Create a sustainable industrial ecosystem

Implementation Strategy:

The DIW will:

  • Reduce administrative bottlenecks
  • Implement strict review protocols
  • Provide clear guidelines for industrial operators
  • Maintain transparent monitoring mechanisms
  • Enforce rigorous compliance standards

Key Takeaways:

  1. Proactive Regulatory Approach: Thailand is transitioning from reactive to proactive industrial regulation.
  2. Environmental Priority: Protecting ecological systems and community health is paramount.
  3. Operator Accountability: Businesses must demonstrate responsible practices to maintain operational licenses.
  4. Transparent Governance: All processes will be open to public scrutiny and systematic review.

Conclusion:

These reforms represent a significant milestone in Thailand’s industrial policy, demonstrating a commitment to sustainable development, environmental protection, and responsible business practices.

Author: Panisa Suwanmatajarn, Managing Partner.

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Ministry of Finance: Update on Excise Tax in the Fields of Public Health, Environmental and Economic

On November 5, 2024, the Deputy Minister of Finance presented key policies to the Excise Department, emphasizing its crucial role in driving the transformation of the country’s economic structure, environmental sustainability, and public health. This will involve in studying new tax collection mechanisms, continuing the existing mechanisms, and adjusting the tax collection system to achieve such goals. The policy primarily focused on 3 key areas – health-related tax, environmental-related tax, and economic-related tax. The details are as follow:

1.Heath-Related Tax

  • Fat Tax Consideration: The Excise Department was advised to consider taxation mechanism for the fat tax to combat rising rates of fat consumption which are linked to increase a burden healthcare cost. The fat tax will be collected based on the type of fat in foods and products.
  • Expanding the Scope of Sodium Tax: Thailand’s current sodium tax will mainly target at four main product groups (i.e., instant noodles, frozen foods, snacks, and sauces). The policy is suggested to impose a sodium tax on products outside the current controlled lists, and prioritizing items with high sodium levels while considering the accessibility of essential goods for low-income individuals which will be calculated based on the level of saltiness.
  • Approving of the 4th Phase on the Sugar Tax: The sugar tax was implemented to encourage beverage manufacturers to reduce sugar content in 2017, in order to provide businesses and consumers time for adapting to the potential increases of the price, the sugar tax will be implemented into 4 phases which step-up system with rates increasing every 2 years. The implementation of sugar tax is currently in the 3rd phase, and the sugar tax has been approved for the 4th phase, commencing on April 1, 2025. This progressive approach aims to achieve the goal of reducing sugar content in packaged beverages.
  • Tobacco Tax System Development: Thailand’s tobacco tax structure consists of 2 main types: (1) a blended tax which considering both value and quantity, and (2) a single-rate tax which specific rate taxes, The policy requires the implementation of a blended tax system for tobacco product while stipulating the development of a single-rate tax system that aims to reduce price distortions, boost market competition, support local tobacco farmers, and increase government revenue.
  • Track & Trace system for Tobacco Products: Previously, Thailand’s tobacco verification system relied solely on stamps to confirm tax payment, with information accessible only to the Excise Department and manufacturers. To enhance transparency and traceability, a QR code tracking system has been implemented and enforced. This new system facilitates the process of verification, including allows the public to independently monitor product authenticity.

2. Environmental-Related Tax

  • Establishment of Carbon Pricing Mechanism: The Excise Department was advised to establish a carbon pricing mechanism in the excise tax on 6 different types of oil products to reduce the emission of Carbon dioxide gas from both the public and business operators. The initial carbon price is set at 200 baht per ton of carbon.
  • Reconsideration of Tax Rate for Battery Products: Currently, the tax rate for battery products is set to be at the rate of 8% for all types of batteries according to Ministerial Regulation regarding the Excise Tax Tariff Rates B.E.2560 (2017). However, the tax rate will be changed into a tiered tax system considering the characteristics of the batteries such as life cycle, weight, types, and energy used.
white smoke coming out from a building

3. Economic-Related Tax

  • Investment Incentive for Automobile Industry: The policy using tax incentives to attract investment in the domestic automotive industry, particularly for Plug-in Hybrid Electric Vehicle (PHEV), Battery Electric Vehicle (BEV), Fuel Cell Vehicle (FCEV) vehicles, and Hybrid Electric Vehicle (HEV) while maintaining the production base for Internal Combustion Engine (ICE). However, to support long-term restructuring, the policy will be exposed to short-term revenue losses.

 Strategic Objectives:

  1. Promote preventive healthcare
  2. Modify consumer behavior
  3. Support environmental sustainability
  4. Drive economic transformation
  5. Ensure balanced revenue collection

Implementation Considerations:

  • The phased approach to allow business adaptation
  • Targeted reduction of sodium consumption by 30% by 2025
  • Collaborative approach with relevant government agencies

Conclusion

The November 2024 excise tax policy update represents a sophisticated, multi-dimensional approach to addressing national challenges through strategic tax mechanisms, balancing public health, environmental sustainability, and economic development.

Recommended Actions for Stakeholders:

  • Invest in product reformulation
  • Review current product portfolios
  • Assess potential tax implications
  • Develop adaptation strategies
  • Engage with regulatory authorities

Author: Panisa Suwanmatajarn, Managing Partner.

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BOI: New Measures to Promote Thailand’s Automotive Parts Industry

Introduction:

On June 28, 2024, the Thailand Board of Investment (BOI) unveiled new investment promotion measures aimed at bolstering the country’s automotive parts industry. These measures, detailed in the BOI Announcement No. 11/2024, are designed to motivate and encourage automotive parts manufacturers to enhance their production capabilities and facilitate their transition to new industries.

Background:

As the global automotive industry shifts towards electric vehicles (EVs), Thailand, a leading automotive hub, recognizes the need to support both traditional combustion engine vehicle manufacturers and emerging EV parts producers. The BOI’s new measures aim to encourage manufacturers to modernize their machinery, invest in personnel training, and adopt advanced technologies. This approach is intended to enhance efficiency and competitiveness, positioning Thailand to thrive in the evolving automotive landscape and explore new industry opportunities.

Eligibility Criteria:

To qualify for support under these measures, entrepreneurs must meet the following criteria:

  1. Operational Status: The project must be currently operational, regardless of previous promotion status. Projects that were previously promoted must either no longer be eligible for corporate income tax exemptions and reductions or must have never received such benefits.
  2. Investment Plan: Applicants must submit a comprehensive investment plan to the BOI, outlining strategies for industry upgrade or transition. This plan should address technological advancements, industry standards, and workforce development.
  3. Minimum Investment: A minimum investment of 1 million baht is required, excluding land costs and working capital. The investment value will be calculated based on: a. Machinery and equipment b. Standards certification for the new industry c. Consultancy fees for production enhancement or transition d. Employee training for relevant technology or courses e. Software, programs, or information systems investments f. Cloud services or data center usage
blue silver black car engine

Application Deadline:

Interested parties must submit their applications for promotion under this announcement no later than the last business day of 2025.

Benefits for Eligible Projects:

Upon approval and receipt of a promotion certificate, eligible projects will be granted the following benefits:

  1. Machinery Import Duties Exemption: Full exemption on import duties for qualifying machinery.
  2. Corporate Income Tax Exemption: A three-year corporate income tax exemption, calculated as follows:
    • 50% of the project investment (excluding land and working capital)
    • 100% of the project investment (excluding land and working capital) if at least 30% of the changed machinery’s value supports the domestic automatic machinery manufacturing industry

Conclusion:

These new measures reflect Thailand’s commitment to maintaining its position as a key player in the global automotive industry. By incentivizing modernization and technological adoption, the BOI aims to ensure that Thailand’s automotive parts sector remains competitive and adaptable in the face of evolving industry trends, particularly the shift towards electric vehicles.

Key Takeaways:

  1. Modernization Focus: The BOI is encouraging manufacturers to adopt advanced technologies, modernize machinery, and invest in personnel training to enhance efficiency and competitiveness.
  2. Comprehensive Eligibility Criteria: Applicants must demonstrate a commitment to industry upgrade or transition, meet minimum investment thresholds, and adhere to specific investment guidelines.
  3. Attractive Financial Incentives: Eligible projects benefit from exemptions on import duties and corporate income tax.
  4. Time-Sensitive Opportunity: Investment promotion applications must be submitted by the end of 2025, emphasizing the need for timely action by interested parties.

Author: Panisa Suwanmatajarn, Managing Partner.

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Streamlining Thailand’s Industrial Operations: Amending the IEAT Act

Thailand’s industrial sector, a key driver of economic growth and investment, is poised for a significant overhaul with the proposed amendments to the Industrial Estate Authority of Thailand Act, B.E. 2522 (1979) (“Act”). On May 7, 2024, the Industrial Estate Authority of Thailand (IEAT) initiated a public hearing process on the draft of the new Industrial Estate Authority of Thailand Act, B.E. …. (“Draft Act”). This legislative effort aims to address longstanding challenges and obstacles encountered during the enforcement of the original Act, aligning its provisions with contemporary conditions and future developments in industry and commerce.

At the heart of the Draft Act lies a redefinition of IEAT’s mission and objectives. The current Act lacks an explicit delineation of IEAT’s role, leaving its focus somewhat ambiguous. The amendments seek to clarify and expand IEAT’s powers and objectives. This clarity is crucial in determining whether IEAT’s primary emphasis should be on promoting investment in industrial estates with a focus on profitability, fostering a conducive investment environment, or striking a balance between these aims while considering environmental impacts and ensuring harmonious coexistence between the industrial sector and society.

A significant aspect of the Draft Act revolves around the amendment of the permit system. Recognizing the potential impact of various activities conducted within industrial estates, such as pollution or resource utilization, on surrounding communities and environmental quality, the Draft Act proposes the establishment of pollution control standards and waste emission regulations. To effectively control and oversee activities that significantly affect life, rights, freedoms, society, or public interests, the Draft Act introduces measures prohibiting such activities or businesses until the necessary permissions are granted.

aerial view of white buildings

Furthermore, the Draft Act seeks to enhance the committee system by granting broader authority to issue regulations, rules, criteria, and policies to support the operations and activities of IEAT, industrial operators, and commercial operators. This expanded power encompasses the committee’s ability to issue regulations or rules concerning engineering specifications, environmental standards, and safety standards for activities and operations within industrial estates, as well as sale prices, rental rates, hire-purchase rates, and the duration of leases and hire-purchase agreements for real and personal property, as well as maintenance fees for facilities and service rates within industrial estates.

Recognizing the potential risks of accidents or damages affecting public order, the Draft Act grants enhanced authority to officials to prevent and maintain public order, address urgent situations requiring immediate resolution, and manage obstacles that may hinder their efforts to prevent and maintain order. Officials will be empowered to apply the principles of the Disaster Prevention and Mitigation Act, B.E. 2550 (2007) in such circumstances.

Additionally, the Draft Act proposes adjustments to various penalty provisions. While some criminal penalties will be replaced with disciplinary fines to provide appropriate punishment for offenders and avoid criminal records, certain criminal penalties will remain in place for specific offenses to prevent misconduct and effectively regulate industrial and commercial activities.

The public hearing process for the Draft Act is currently underway and will continue until June 15, 2024. The proposed revisions to the IEAT Act reflect a proactive response to the evolving challenges of the industrial sector, tailored to modern demands and focused on promoting sustainable development while reinforcing Thailand’s industrial prowess for future competitiveness and growth.

Author: Panisa Suwanmatajarn, Managing Partner.

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New Types of Projects That Required Submission of EIA and EHIA

The introduction of new types of projects that require the submission of Environmental Impact Assessment (EIA) and Environment and Health Impact Assessment (EHIA) reports will take place.

Under current regulations, projects, undertakings or operations (referred to as “Projects”) that meet the criteria outlined in the Enhancement and Conservation of National Environmental Quality Act B.E. 2535 (1992) and its subordinate regulations must prepare and submit an EIA and/or EHIA report to the Ministry of Natural Resources and Environment (MNRE).

calculator and pen on table

To update the criteria for projects that require the preparation and submission of EIA and/or EHIA reports, the MNRE has released a draft version of the modified MNRE Notification. This draft includes (1) criteria for projects, businesses, or operations that must conduct an EIA report, as well as principles, measures, and conditions for preparing the report (referred to as the “EIA Draft Notification”) and (2) criteria for projects, businesses or operations that may have a significant impact on natural resources, environmental quality, health sanitation and the community’s quality of life. This also includes principles, measures and conditions for preparing the report (referred to as the “EHIA Draft Notification”).

Although the essence and necessary details within the EIA or EHIA report remain largely the same, there are several revisions summarized as follows:

1.EIA Draft Notification

Firstly, the scope of applicability of the EIA Draft Notification has been expanded. It now includes existing projects that were operational before the enactment of the EIA Draft Notification, if there is an expansion of Project or Project details modification falling under the criteria as prescribed, requiring them to prepare a report in accordance with the EIA Draft Notification.

Secondly, certain definitions of projects provided in the previous version of the EIA Notification have been revised. For example, the definition of the “Iron or Steel Industry” has been amended to provide more clarity. The EIA Draft Notification now specifies the type of steel, such as primary steel or intermediate steel, that is smelted or cast.

Another significant revision under the EIA Draft Notification is the introduction of new types of projects that require conducting an EIA. Examples include:

  • Aerodromes or temporary takeoff and landing of aircraft on the water according to air navigation laws.
  • Rail transport system.
  • Land reclamation at sea or Songkhla Lake outside the original coastal line with an area of less than 300 rai except for reclamation for beach rehabilitation.
  • Industrial zone or land allocated for industrial purposes according to the industrial estate law, factory law, or land allocation law.

2.EHIA Draft Notification

Similar to the EIA Draft Notification, the EHIA Draft Notification also includes significant revisions. These revisions involve (1) the scope of applicability, (2) certain definitions of projects (e.g. upstream petrochemical industry, with the revision specifying the use of raw materials from petroleum refining, natural gas and condensate) and (3) the introduction of new types of projects that require conducting an EHIA. Examples of these new types of projects include:

  • Nuclear manufacturing that uses nuclear reactors.
  • Radioactive waste management service facility.

Author: Panisa Suwanmatajarn, Managing Partner.

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Procedure for Waste Disposal to be Changed

The Ministry of Industry has opened a public hearing to gather comments on the draft Announcement regarding Industrial Waste Disposal B.E. …. (“Draft Announcement”). The draft aims to improve the definition of waste terms in Article 5, define characteristic codes and disposal codes in the annex, and make the procedures more straightforward and clearer.

The Draft Announcement specifies the procedures and measures for waste disposal in accordance with the context of factory operations. The Factory Entrepreneur as prescribed by the Ministerial Regulation Re: Determination of the Category, Type and Size of the Factory B.E. 2563 (2020) issued by the virtue of Section 7 of the Factory Act B.E. 2535 (1992) is required to comply with this Draft Announcement.

This Draft Announcement is divided into three main issues for which the Factory Entrepreneur is responsible for the key issues as follows:

  1. Waste Generator: A factory entrepreneur that generates wastes. The procedures for disposing of waste in the generator is specified. The waste generator is required to submit an annual report on waste collection and disposal by 1 March of each year, using the document form as specified. The transportation of waste out of the factory premise must have permission and a license from the Director-General of Department of Industrial Works and the waste must be managed according to the criteria and procedures prescribed in this Draft Announcement. Additionally, the representative appointed by the generator to transport the waste out of the factory premise shall proceed strictly in accordance with this Draft Announcement. The exemption type of waste that is not required to comply with this Draft Announcement is also specified.
  2. Waste Processor: A person who represents the waste disposal for the waste generator. The processor shall only dispose of permitted waste types, record the waste analysis, and submit it to the waste generator. The processor must use a manifest sheet and report as prescribed by the Director-General of Department of Industrial Works. The Draft Announcement also specifies that “raw material” is waste received for disposal. The processor must manage the waste as specified and collect it in proper condition and safely in an appropriate building. The raw material disposal period is divided into 1. Hazardous raw material (which shall be disposed of within 30 days) and 2. Non-hazardous raw material (which shall be disposed of within 60 days). Additionally, the waste processor is specified for factory types that have additional regulations as prescribed.
  3. Provisional Chapter: The transportation of waste out of factory permission granted before this Draft Announcement becomes effective will be valid under this Draft Announcement.