Two Years for Traders' Claims
The Civil and Commercial Code applies a two-year prescription period to a merchant's claim for the price of goods supplied or work done in the ordinary course of business, running from the date the claim became enforceable. Longer periods apply to other categories of obligation, but for a supplier the two-year figure is the operative one.
This is the single most important fact on a Thai file. A written acknowledgement of the debt or a part payment restarts the period, so a debtor who keeps promising payment may inadvertently be preserving your claim - but that has to be documented, not assumed. Where invoices are approaching the deadline, the step that stops the clock takes priority over continued negotiation.
A Court Built for Cross-Border Trade
Thailand operates a specialised Central Intellectual Property and International Trade Court which, despite its name, handles international sale of goods, carriage and trade finance disputes alongside intellectual property matters.
For a foreign supplier this is a materially better forum than the general civil courts: the judges deal with cross-border trade documentation routinely, the procedure is designed for it, and appeals run on a dedicated track. Where a claim qualifies, it should be brought there rather than in a provincial court of general jurisdiction.
Arbitration and Award Enforcement
Thailand is a party to the New York Convention and has an established arbitration framework, with institutions in Bangkok administering commercial cases. Where a contract provides for arbitration the clause governs, and enforcement of an award proceeds through the courts subject to the Convention's grounds.
For contracts still being negotiated, an arbitration clause with a seat outside Thailand is a common and defensible choice for a foreign supplier - but the two-year prescription point applies regardless of forum, so it does not reduce the urgency.
How Long Does a Thai Claim Take?
| Stage | Typical Duration | Cost |
|---|---|---|
| Formal demand Written demand in Thai, negotiation | 3β5 weeks | Low |
| IP&IT Court claim Specialised international trade forum | 10β20 months | High |
| General civil claim Where the case does not qualify | 1β3 years | High |
| Arbitration Where the contract provides for it | 1β2 years | High |
| Enforcement Execution against assets | 4β10 months | Medium |
How Does SXB Global Handle a Thai Case?
We check the prescription position before anything else and say plainly if the file is close to the deadline - on a Thai claim that is more important than any strategic judgement about route. We then assess whether the matter qualifies for the specialised trade court. Contact is conducted in Thai. Where legal proceedings become appropriate, SXB Global coordinates the instruction of appropriately authorised local counsel. Legal services are provided by the relevant independent legal professionals.