idcOnic Co., Ltd.

Import & Export from/to Thailand

Author: Tavatchai Boodin

APFI Food Safety Regulations Series: Thailand

To better understand the food regulatory landscape in Asia, APFI has spoken to law firms that specialize in food law from five different countries across Asia, which include China, Thailand, Vietnam, Singapore and the Philippines.

In the second part of the series, we look at food safety regulations in Thailand. Alan Adcock, partner and deputy director, intellectual property and regulatory affairs, Tilleke & Gibbins, shares his advice.

How do food regulation and registration vary depending on the product or category?

The Thailand FDA classifies food products into four groups, depending on the risk level of the food, as follows:

  1. Specially controlled food:The foods in this group have a high risk level. This food group defines all quality standards, including labelling and production processes, and is tightly controlled. It includes foods for consumer risk groups such as infants.

The foods in this group are modified infant milk and modified infant milk formula, infant food and infant food formula, supplementary food for infants and young children, weight-control food, food additives, cyclamates, and steviol glycosides.

  1. Standardized food: This group comprises foods with a medium risk level. There are quality and labelling standards for each category of food, as in the first group. However, product owners are directly responsible for ensuring their products are in accordance with FDA regulations (i.e., regulations on formula, labelling, and safety and quality standards).

The foods in this group are coffee, edible salt, vitamin-fortified rice, alkaline-preserved egg, cream, electrolyte drinks, chocolate, tea, herbal tea, a few kinds of sauces (i.e., tomato sauce, chili sauce, papaya sauce, and flour sauce), ice, soy milk, drinking water, fish sauce, honey, peanut oil, butter oil, palm oil, coconut oil, fats and oils, mineral water, vinegar, butter, cheese, ghee, margarine and fat spreads, soy sauce, jam, jelly and marmalade, semi processed food, brine for cooking, royal jelly, royal jelly products, food supplements, beverages, cow’s milk, flavored milk, milk products, yoghurt, ice cream, and food in sealed containers.

Royal jelly products, food supplements, beverages, cow’s milk, flavored milk, milk products, yoghurt, ice cream, and food in sealed containers are tightly controlled.

  1. Food with labelling: This group comprises foods with a medium risk level. The FDA was formerly responsible for approving the labelling of food in this group. Currently, this group is no different from the second group. Product owners are directly responsible for ensuring their products are in accordance with FDA regulations (i.e., regulations on formula, labelling, safety, and quality standards).

The foods in this group are bread, husked-rice flour, sauces, meat products, flavoring, gelatine and jelly desserts, chewing gum and candy, ready-to-cook and ready-to-eat products, irradiated foods, GMO foods, and specially purposed food.

Specially purposed food (e.g., medical food, food for special persons, etc.) is tightly controlled.

  1. General food: This group comprises foods with a low risk level. Foods in this group do not require food product registration with the FDA.

The foods in this group are animals and animal products, plants and plant products, extracts or synthetic substances, nutrients, flour and flour products, premixed food for ready-to-cook products, seasoning, sugar, and spices.

In addition, the Thailand FDA provides basic levels of food safety that food manufacturing companies must adhere to in the form of ‘good manufacturing practices’ issued as notifications by the Ministry of Public Health. These are mandatory and discrete to certain food products. It is important for manufacturers to check regularly whether any are applicable to their products.

Have you seen a growth in the number of food and beverage companies entering the markets in Thailand?

We have seen growth not only in Thailand but also across the growing economies of Southeast Asia. Many clients encouraged us to expand our legal and regulatory services to other jurisdictions in the Association of Southeast Asian Nations, which we did in 2013 by opening our own fully independent law offices in Indonesia, Laos and Myanmar and subsequently in 2015 in Cambodia.

We find that more and more of our clients are looking for a ‘one-stop shop’ that can, for example, handle registration of their highly regulated products in multiple jurisdictions, which we provide with our cross-office Regulatory Affairs practice. We are also seeing more foreign clients pursuing patent litigation cases as local laws get tougher.

Food supplements and nutraceuticals are also becoming more prevalent in Southeast Asian markets. Interestingly, there is a growing number of local and foreign collaborative research and development projects focusing on indigenous flora for possible food and cosmetic applications.

We have seen a marked increase in the number of these projects across our offices here in Southeast Asia and we advise on the agreements, benefit-sharing assessments with local communities, plant variety and patent assessment and registration and, of course, manufacturing and distribution.

Which regulatory hurdles should manufacturers be aware of when entering the food market in Thailand?

Non-English language regulations require constant monitoring and vetting for importance to clients. Our regular involvement in local domestic industry associations also gives us opportunity to participate in regulatory drafting, consultation and bringing client perspectives to the attention of the regulators.

Regulatory non-compliance can result in fines and/or imprisonment depending on the violation and the type of product involved.

Will there be any major changes in Thailand’s food industry in the next few years?

The Thai legislative agenda can be difficult to predict, due to the changeable nature of Thai politics. However, the current government has been very enthusiastic about promoting the food industry as a driver of economic growth, and has made particular efforts to encourage startups in the industry.

In mid-2016, the government announced the establishment of a National Science Technology and Innovation Policy Office, which launched the Food Innopolis initiative. The initiative comprises a specifically designed science park, at which research and development companies can benefit from substantial tax incentives and various other forms of government support, many of which are guaranteed for between five and eight years.

This is indicative of a number of policies which the government has been seen to support, and it is reasonable to assume that the result will be a substantial increase in technologically innovative food and agricultural startups in the coming decade.

Source: https://www.tilleke.com/resources/apfi-food-safety-regulations-series-thailand

Thailand Import and Export Index for Jan – Mar 2016

Exports

Thailand’s overall export value slightly increased by 0.90% or USD479mil in Q1 2016 at USD53,829mil comparing to Q1 2015 at USD53,351mil. The main contribution for the increase comes from Switzerland which jumped from USD536mil to USD1,644mil while the main contribution for the decrease comes from China by USD356mil and Cambodia by USD238.

Thailand Export Index by country for Q1 2016

Thailand Export Index by country for Q1 2016

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Thailand Consumer Goods Import Index as of January 2016

Electrical household appliances remains the highest at USD576.81mil which increases by 21.23% from the previous month. The second highest imported consumer good group including fruits, vegetables, fruit and vegetable preparations went up to USD216.13mil which is 15.61% higher than the previous month. For the third highest group, the value of imported medicinal and pharmaceutical products was at USD211.37 which is dropped by 3.69% comparing to the previous month.

Consumer Goods Import Index as of Jan 2016 P1

Consumer Goods Import Index as of Jan 2016 P2

While the total value of imported consumer goods went down in Jan 2106, it actually follows the same trend as for Jan 2015 which we can see the recovery by the end of the quarter.

Source: Ministry of Commerce (Thailand)

ASEAN Import of Services by AMS and broad categories (in US$ Million)

The latest ASEAN import of services by AMS and broad categories (in US$ million) can be seen as follows which can be seen that Thailand contributes a very large market share among ASEAN members.

Asean import statistic by AMS and broad categories 2014

Source : http://aseanstats.asean.org

Thailand BOI Sponsored Seminar “Australian Company Investment to Thailand” in Perth

The Thailand Board of Investment is currently promoting foreign investment, especially by Australian manufacturing companies looking to expand their business into S.E Asia, with a combined domestic market of over 600 million people, and the AEC commencing in 2015.

Thailand is in an ideal location as a leading economy in the region and gateway into China, India, Myanmar (Burma), Laos, Cambodia, Vietnam, Malaysia and Singapore.

Come and hear what local Australian/Thai business people have to say about “doing business in Thailand” and what the BOI has to offer as incentives to FDI’s. BOI will be represented by one of its most senior executives from the Thai government in Bangkok.

A half day seminar will be held at DAFWA theatrette South Perth for the agribusiness sector and Australian companies looking to expand into Thailand and the ASEAN region.

Event venue: DAFWA Theatrette, Baron-Hay Court, South Perth

Date: 22nd February 2016

Time: 08:45 AM – 12:30 PM
For further information about this event, contact Peter Cook AgKnowledge (Perth) on (+61) 8 9291 8111 or (+61) 417 953 957 or cooke@iinet.net.au

Darren McCoy – VC Group (Sydney) on (+61) 407 463 488 or Email: darren.mccoy@vcgroup.com.au

Thailand’s Imported Food Index (Jan – Nov 2015)

From the YoY import food statistics between 2014 and 2015, Singapore still remains No. 1 highest exported food into Thailand even though the total imported value dropped by 3%. USA also remains No. 2 highest exported food into Thailand with the sustainable value.  Since China’s total imported value dropped by 14%, Indonesia came as No. 3 even though Indonesia’s total imported food value dropped by  6% mostly from Thailand’s overall imported food value dropped by 5%.

Thailand imported food statistics 2015

Source: Ministry of Finance, Thailand

 

Thai Cosmetics Company Pulls Ad Showing Actress in Blackface

A Thai cosmetics company quickly pulled a video in which an actress wears blackface and promotes a skin-whitener with the slogan: “You just need to be white to win.” The retraction did little, however, to stem a debate the ad ignited about the regularity of racist advertisements in the Southeast Asian country.

The online ad for the new product called “Snowz” featured porcelain-skinned Thai movie star Cris Horwang talking about being an aging actress in a competitive industry.

“If I stopped looking after myself, everything that I have worked for — all the investment I have made to keep myself white — would disappear,” says the 35-year-old actress. “New stars would replace me, I would fade away.”

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