3.           Factory Operations

The Ministry of Industry has the power to designate:

·       The size and quantity of the type of factory in each category that should be established or expanded or not be established or expanded in any locality in the Kingdom.

·         The type, quality, source of origin and ratio of raw materials and/or factors or kinds of energy to be used or produced in a factory.

·         The type or quality of products to be manufactured in a factory to be established or expanded.

·         The application of the produces from factory being established or expanded in certain types of industry; or the export of all or part of such produces.

If a factory in Category 2 or 3 stops operation consecutively for more than one year, the operator must notify the competent authority in writing within seven days of the date the one-year period has lapsed, and must inform the competent authority of such in writing before restarting the operations. In the case of a factory in Category 3, the operator must first receive written permission from the competent authority before restarting the operations.

If there is an accident that causes death, injury or sickness that incapacitates a worker beyond a 72-hour period, the operator must inform the competent authority of such in writing within three days of the date of the death or the lapse of the 72-hour period. If there is an accident that causes the factory to stop operations for more than seven days, the operator must notify the competent authority of such in writing within 10 days of the date of the accident.

A factory operator must obtain permission from the Permanent Secretary to remove machinery from its original place of installation to another site for temporary operations. The period of permission shall be as per request but shall not be longer than one year.

In the case of moving a factory to another site, the operator has to proceed as if establishing a new factory.

Permission must also be obtained to transfer, rent, offer for hire purchase or sell a licensed factory. In these cases, the prior license is considered to have expired, and a new license must be applied for by the transferee, lessee or hire-purchaser within seven days, although no fee is required. Upon submission of such application, the engagement in a factory business shall be continued pending the receipt of a license as if such applicant were the recipient of the license.

If the licensee dies, the heir or administrator of the estate must submit an application for the transfer of the license within 90 days of the date of death; otherwise, the license shall be deemed to expire. Upon submission of such application, the heir or administrator of the estate engaging in a factory business shall be deemed as if they were the recipient of a license.

Source: A Business Guide to Thailand

Updated: November 2015