Thailand's private sector is being urged to invest more in warehouse, silo and cold storage facilities to help strengthen the distribution of fisheries and agricultural products.
Commerce Minister Apiradi Tantraporn said the Warehouse, Silo and Cold Storage Act 2015 gives new entrepreneurs easier access to such facilities as it reduces both the approval process and the time taken to obtain a licence.
The law, which came into force on Dec 25, 2015, allows a juristic person in the form of a limited partnership, limited company, public limited company or cooperative to conduct warehouse, silo and cold storage businesses only with the consent of the director-general of the Internal Trade Department.
Earlier, permission from the Commerce Minister was required.
According to the law, a company operating warehouse, silo and cold storage services for affiliated companies' goods in the usual course of its business for remuneration is required to report the name and address of the storage facility as well as its area, size and capacity plus the name and address of the affiliated company, within 30 days from the commencement date of the business operation to obtain a notification receipt.
Any juristic person who conducts warehouse, silo and cold storage services without a licence shall be subject to imprisonment of not more than one year, or a fine of not more than 100,000 baht, or both, and a fine of not more than 10,000 baht per day throughout the violation period.
Any person who has a warehouse, silo and cold storage facility for storing affiliated companies' goods in the usual course of its business for remuneration and fails to inform the authorities and obtain a notification receipt within 30 days from the commencement date of the business operation, shall be subject to a fine of not more than 20,000 baht.
Moreover, the director or any responsible individual of the juristic person shall also be subject to punishment for such offences.
For the juristic person that, before the effective date of the law, obtained permission to conduct warehouse, silo and cold storage services or has a warehouse, silo and cold storage business for storing affiliated companies' goods in the usual course of its business for remuneration has to inform the officer within 120 days from the effective date of the law.
Wiboonlasana Ruamraksa, director-general of the Internal Trade Department, said the number of public warehouses, silos and cold storage facilities is insufficient to meet demand, particularly from the farm and fishery sectors.
Thailand has 245 operators providing public warehouses, silo and cold storage services.