Instead, the department plans to have factories adopt a self-declare approach under a reform expected to start late this year or early next year.

Industry Minister Uttama Savanayana said that the department will amend the Factory Act, B.E. 2535 to cancel the licence extension period to facilitate factories. About 60,000 factories nationwide are expected to gain from this planned move.

The legal amendment will go first to a meeting of the Cabinet and then to the National Legislative Assembly.

Meanwhile, the public sector will receive factory-related information that will be used in development of Big Data for the nation’s industrial development.

The department will team up with the Federation of Thai Industries (FTI) to help factories understand the self-declare approach as the planned cancellation of the factory license extension on a five-year basis will be a change in principle. Earlier, department officials examined the practice of factory licence extensions.

Once the legal amendment takes effect, factories will be required to follow the self-declare approach by showing their information – including matters concerning safety and the environment – to certify that their operations comply with the laws. Then, state officials or registered private factory inspectors will inspect the factories thereafter and certify the factories’ information.

This planned measure will facilitate factory operators and boost service efficiency, while reducing the waiting time for requests regarding factory licences as well as address complaints over a lack of transparency in the licence extension process.

Thongchai Chawalitpichaet, the DIW director-general, said that about 60,000 factories will be required to have their licenses extended on a five-year basis from 2019-2023. Once the Factory Act is amended and the new act takes effect, these manufacturers will not be required to seek license extensions for their plants. Under the change, the department will lose fee-based income in the range of Bt1,500 to Bt60,000 per factory.

The department expects the change will bring more convenience for factory operators. This benefit would outweigh the fee income lost, Thongchai said.

FTI chairman Suphan Mongkolsuthree said that the Ministry of Industry’s policy change would greatly benefit manufacturers.

Source: http://www.nationmultimedia.com/detail/Economy/30357189