Principles of fair-trade practices relating to credit term in the case of small and medium businesses who sell goods or services in Thailand
The Trade Competition Commission (“TCC”) has issued the announcement of fair trade practices regarding credit term in the case of Small and Medium Enterprises (“SMEs”) who sell products or services. Goods or services or guideline credit term was announced in the Government Gazette on June 18, 2021, and was effected on December 16, 2021. The announcement covers issues in terms of content and processes that the relevant business operators must prepare to adjust the business guidelines correctly as shown in this announcement. The entrepreneurs are able to avoid behaviors that may be considered unfair trade or illegal as well.
泰國貿易競爭委員會(簡稱TCC)已發布關於銷售產品或服務的中小型企業 (簡稱SMEs) 的信用期限的公平貿易慣例的公告。商品或服務、或是指導信用期限於 2021年6月18 日公告在政府公報上，並於 2021 年12 月16 日生效。本公告涵蓋內容和流程，相關商業經營者必須準備調整商業準則以便正確符合本公告內容。企業家也能夠避免可能被視為不公平貿易或非法的行為。
TCC has the powers and duties to supervise companies to ensure fairness of trade, especially SMEs which are likely to be taken advantage by bargaining less power, which will cause damage from unfair trade practices under Section 57 of the Trade Competition Act B.E. 2560 (2017). In addition, the government has the policy to reduce economic inequality and create fairness for SMEs business, so TCC deems it is appropriate to set rules and standards for the appropriate periods of credit term of 30 to 45 days to SMEs as recommended by the National Economic and Social Development Council (NESDC) and Bank of Thailand.
泰國貿易競爭委員會有權及責任監督企業以確保貿易公平，尤其是中小企業，可能因議價能力減弱而被利用，將根據佛曆2560年(2017年)《泰國競爭交易法》第 57 條對不公平貿易行為造成損害。此外，政府制定政策減少貧富差距和為中小企業創造公平經營，因此泰國貿易競爭委員會會認為依據泰國國家經濟和社會發展委員會(簡稱NESDC)及泰國銀行的建議，制定規定及標準為中小企業製定 30 至 45 天的適當信用期限的規則和標準為適當。
“SMEs” is a business operator having the following business characteristics:
1. In the case of production: A company must employ no more than 200 employees or a company has an annual income of not more than 500 million baht.
2. In the case of service provision, wholesale business or retail business: A company must employ no more than 100 employees or a company has an annual income of not more than 300 million baht.
提供服務、批發業務或零售業務的情況:公司必須僱用不超過 100 名員工或公司年收入不超過3 億泰銖。
By the criteria for determining the period of credit term between any business operator who is a business partner with SMEs, must comply with the guidelines for considering fair trade principles as follows:
1. Duration of credit term:
(A) The trade, manufacturing, and service may not exceed 45 days, unless a shorter credit term is agreed in this clause.
(B) The trade, the manufacturing, and the service related to agricultural commodities or primary processed agricultural products with simple processes may not exceed 30 days, unless shorter credit term is agreed in this clause.
與農產品或加工簡單的農產品初級加工產品有關的貿易、製造和服務不得超過 30 天，除非本條款約定較短的信用期限。
If both parties stipulate different credit terms of more than 45 days, it may be permitted, but there must be a valid business, marketing, or economic reason. There should be terms and conditions of the contract mutually agreed between both parties as well.
如果雙方規定不同的信用期限為超過 45 天，這可以被允許，但需要有效的業務、市場或經濟理由。且需要雙方約定的合約條款和條件。
2. Principles for counting the period of credit term:
The beginning of the credit term counting from the date of delivery of the goods or the date that the service is deemed to be rendered. Or in the case of consignment, the credit term shall begin from the date of the sale of goods in full according to the agreed amount, or according to normal trade practices.
3. Principles for credit term payment:
Credit term payment of any business operator who is a business partner with the SMEs must clearly show the payment process in accordance with the normal trade practice. The SMEs must show important evidence such as the number of employment or income, documents confirming the status of a SMEs shall be communicated to the other business operator as well.
Any of the following acts shall be regarded as an act that falls into the scope of unfair trade practices and may be an offense under Section 57 of the Trade Competition Act B.E. 2560 (2017):
以下任何行為均應被視為屬於不公平貿易行為範圍，並可能構成佛曆2560年(2017年)《泰國競爭交易法》第 57 條規定的犯罪行為:
1. Unreasonable delay in the payment of goods or services beyond the specified credit term.
2. Changes to the term of credit or other terms under the agreement without reasonable reason or without giving the other party not less than 60 days' notice in advance.
無合理理由或未提前不少於 60 天通知另一方的情況下更改協議的信用條款或其他條款。
3. Acting in other ways is unfairly enforced by any business operator who is business partner with the SMEs, such as stipulating special conditions related to credit term which may be create unnecessary burdens on the contracting party, etc.
If any parties’action which is considered an unfair trade practice, it will be an offense under Section 57 of the Trade Competition Act B.E. 2560 (2017) stated that “Any business operator who violates Section 57 of the Trade Competition Act B.E. 2560 (2017), who conducts unfair trade competition behavior must pay an administrative fine at the rate of not more than 10% of the income in the year of the offense. In the case of committing an offense in the first year of business, such person must pay an administrative fine at a rate not exceeding 1 million baht”.
如果任何一方的行為被認為是不公平的貿易行為，根據佛曆2560年(2017年)《泰國競爭交易法》第 57 條構成犯罪。該法說明“任何違反佛曆2560年(2017年)《泰國競爭交易法》第 57條的經營者實施不正當貿易競爭行為，應當處以不超過當年收入10%的行政罰款。如果在營業的第一年發生違法行為，將處以不超過 100 萬泰銖的行政罰款”。
 By virtue of Section 17 (3) of the Trade Competition Act B.E. 2560.  Section 2 paragraph one of the Announcement of the Trade Competition Commission dated 18 June 2021.  Section 4(1) of the Announcement of the Trade Competition Commission dated 18 June 2021.  Section 4(2) of the Announcement of the Trade Competition Commission dated 18 June 2021.  Section 4(3) of the Announcement of the Trade Competition Commission dated 18 June 2021.
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