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Business
in Thailand - Factory
Licensing & Regulations
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The
Factory Act
The Factory Act of 1969 (amended in 1972, 1975, 1979
and 1992) stipulates regulations for factory construction
and operation, factory expansion and safety requirements.
The latest revision of the Act also imposes strict controls
on industrial pollution. The Act is administered by
the Department of Industrial Works at the Ministry of
Industry.
A
factory is defined as any premise, that uses machinery
equivalent to 5 horsepower or more, or that employs
7 or more workers for manufacturing, producing, assembling,
packing, repairing, maintaining, testing, improving,
processing, conveying, storing or destroying anything
included in the classes or types of factories presently
listed in the ministerial regulations.
The
Act does not apply to factories owned or operated by
government agencies for the purpose of national security
or safety, except that such factories must use the procedures
of the Act as guidelines for their operations.
Factory
Licenses
Factories are divided into 3 categories:
:: Factories
that do not require licensing.
::
Factories
that only require advance notification to officials
before the start of operations. Operators may commence
operations as soon as they receive a receipt from the
Ministry, stating that their notification has been received.
::
Factories that require licenses prior to
operation. Subject to the Ministry's discretion, operators
may be granted, prior to the license, a certificate
allowing them to build parts of the factory.
Please
Note: In general, the degree of government control required
is dependent on the degree of environmental protection
deemed necessary. The more likely a factory, based on
its output, is to cause pollution, the more that type
of factory is regulated.
The
Ministry of Industry has the power to issue regulations
for all of the categories regarding:
::
Description, category, or type of machinery
and equipment to be used in the operation of the factory
business.
::
Location, environment, interior, and description
of the factory.
::
Requirements for workers who have specific
knowledge to carry out any duties in the factory.
::
Process of manufacture and provision of
equipment to prevent, stop, or alleviate danger, damage,
or disturbances that may occur to the public or property
in the factory or nearby promises.
::
Standards and procedures for the control
or release of waste, pollution, or anything else arising
from factory operations, which may affect the environment.
::
Provision
of necessary data and documents by the factory operators
to ensure compliance with the law.
::
Provision of anything that may affect
the safety of work operations.
If
there is an inspection of a factory or machinery to
ensure compliance with the Act, a private body may carry
out the inspection and report in place of government
officials, provided this private body follows the regulations
concerning the Act as per the Government Gazette.
Licenses
granted are valid until the end of the fifth calendar
year from the year in which the business started operations,
except when the factory is transferred, leased or subject
to hire purchase, or if operations stop. In these cases,
the license is regarded as having expired on the date
of issuance of a license to the factory's new operators,
or on the date of cessation of operations.
Applications
for renewal of licenses must be submitted prior to the
date of expiration, along with a fee of 100,000 Baht.
Following submission, renewal is considered to have
been extended unless there is a specific order stating
otherwise. If the application is submitted within 60
days of the expiration date, it will be processed normally,
but an additional fee of 20,000 Baht will be levied.
Once the expire date is reached, an application for
a renewal must be made within 60 days.
For
more information, please do not hesitate to CONTACT
US.
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