G/TFA/N/LAO/3/Rev.1  
 
24 August  2022 
(22-6430) Page: 1/6 
Committee on Trade Facilitation  Original: English  
 
 
NOTIFICATION OF ARRANGEMENTS AND PROGRESS IN THE PROVISION  
OF TECHNICAL ASSISTANCE AND CAPACITY BUILDING SUPPORT  
FOR CATEGORY C COMMITMENTS  
COMMUNICATION FROM LAO PEOPLE'S DEMOCRATIC REPUBLIC  
Revision  
The following communication, dated 24 August 2022 , is being circulated at the request of the 
delegation of Lao People's Democratic Republic  for Members' information.  
 
_______________  
 
 
Following up from the notification dated 19 March 2021 (G/TFA/N/LAO/3),  Lao People's Democratic 
Republic  hereby notifies information on the arrangements concluded and progress made in the 
provision of technical assistance and ca pacity building support of the C ategory C commitments , in 
response to Article 16 of the Trade Facilitation Agreement  (TFA) . 
 
Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 7.2 Electronic Payment   C 31 Dec ember 2022 31 December 2024  
Donor: None 
Progress in the provision of technical assistance and capacity building support:  
Among border agencies, Customs is the only department with provision for electronic payment of duties, taxes 
and inspection or quality test fees for imports and exports through Smart Tax Card . In addition, the Lao 
National Single Window (LNSW) also provides for electronic payment of Customs duties and taxes, as well as 
of fees payable to participating agencies for issuing licenses, permits and certificates. LNSW is currently 
available only at a few border crossings and is limited to just a handful of participating agencies, like DIMEX 
and Department of Transport. The progress of LNSW roll out is however slow in absence of lack of IT 
infrastructure in concerned agencies.  
 
Non-customs agencies (NCAs) are unable to allow it due to resource constraints in providing IT infrastructure 
to their field formations. There is no support available from any donor in this regard.  
 
Therefore, the Lao PDR will require assistance from deve lopment partners/WTO on : 
  
(a) Provision of ICT infrastructure in non -Customs agencies for enabling them to accept electronic 
payments of fees and processing charges relating to import, export and transit.  
(b) Requisite changes in regulation & procedures, and  
(c) Capacity building of these agencies.  
 G/TFA/N/LAO/3/Rev.1  
 
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  Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 7.4 Risk Management  C 31 Dec ember  2022 31 December 2024  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
Lao Customs Department is applying risk management principles in examination of goods at the border posts 
using the selectivity module of ASYCUDA, its automated processing system. The skill l evel of officers engaged 
in risk management functions needs to be enhanced for an effective application of risk management principles 
and reducing the percentage of border examinations. Further, development of an Integrated Risk Management 
Framework involv ing Customs and other border agencies is planned to undertake joint examination and 
clearance using the Customs ' selectivity module. With the support of the WB 's LCT project, border agencies 
already signed an MOU to implement the joined risk management. Ho wever, all border agencies need to work 
together to come up with the SOP for joined risk management.  
The WB under the Lao PDR 's Competitiveness & Trade Project (LCTP) aims to provide following support:  
 
1. To enhance the maturity level of the LCD 's existing r isk management functions.  
2. To develop an integrated risk management framework (IRMF) involving Customs and other border 
agencies, like Food & Drugs Department and Plant & Quarantine departments for improved border 
functions.  
3. Preparation of Operation Manuals  and guidelines for implementing risk management in border 
agencies  
4. Capacity building of above border agencies in application of risk management principles.  
 
In addition, Lao Customs Department is also helped by JICA in building its capacity for risk asses sment, 
analysis and development of risk parameters for effective risk management.  
 
However, due to fund constraints, support of the WB project is limited, and hence Lao PDR will require 
following assistance from the development partners/WTO:  
 
(a) Technical sup port on risk analysis and development of risk profiles, particularly in the Department of 
Agriculture and the Department of Livestock & Fisheries, towards effective functioning of the risk 
management framework.  
(b) Upgrad e of the Risk Management System in Lao Customs following international best practices.  
(c) Capacity building of Customs & other border agencies for above functions.  
 
Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 7.5 Post-clearance Audit  C 31 Dec ember  2022 31 December 2024  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
Lao Customs has been following Post -Clearance Audit since 2007. However, PCA functioning in Lao Customs 
is confined to an asset verification exercise, rather than a comprehensive scrutiny of trader 's own accounts 
and commercial records. Hence, it needs qualitative upgradation, including capacity building of the staff for 
making the m more effective. Other border agencies also need to evolve PCA mechanism to supplement their 
risk-based border inspections.  
 
The WB under the Lao PDR 's Competitiveness & Trade Project (LCTP) aims to provide following support:  
 
1. Strengthening the existing  system of Post -Clearance Audit in Customs for enhancing compliance  
2. Development of Operation Manual and guidelines for conducting PCA in Customs by using traders ' 
own financial accounts and commercial records.  
3. Introduction of post clearance audit in othe r agencies, like Food & Drugs Department and plant & 
quarantine agencies by restructuring their post -marketing compliance system.  
4. Capacity building of various border agencies for an effective post -clearance audit.  
 
However, due to fund constraints, WB su pport is limited and hence, support of development partners/WTO is 
required for the following activities:  
 
(a) Development of Operation Manuals and protocols in non -Customs border agencies, for conducting 
PCA and sharing results with each other.  
(b) Capacity building, especially the on -job mentoring of the officials of border agencies.  
 G/TFA/N/LAO/3/Rev.1  
 
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  Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 7.6 Establishment and 
Publication of Average 
Release Times  C 31 Dec ember  2022 31 December 2024  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
Lao Customs has been conducting Time Release Study (TRS) surveys for many years and in the last survey 
conducted in 2020, it expanded its scope to capture the time taken by various cross -border regulatory 
authorities for issuance of various licences and pe rmits by needed for import, export and transit.  
 
The WB under the Lao PDR 's Competitiveness & Trade Project (LCTP) continues to provide following support:  
  
1. To Customs, for conducting TRS survey (using WCO 's TRS software) in 2022 and 2024.  
2. Capacity build ing of non -Customs agencies at the border for joining in the future TRS surveys.  
3. The TRS 2022 and 2024 survey will continue to cover the areas of survey to the field of license 
issuance with improved methodology and also aims to include licenses/permits i ssued at the 
provincial level.  
 
Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 7.7 Trade Facilitation 
Measures for 
Authorized Operators  C 31 Dec ember  2022 31 December 2024  
Donor: World Bank, International Finance Corporation , World Customs Organization  
Progress in the provision of technical assistance and capacity building support:  
Lao Customs has already launched an Authorized Economic Operators (AEO) program with the assi stance of 
WB (IFC) and has also conducted rigorous training of its staff with the WCO help recently. It however requires 
continued support in capacity building of its staff and the private sector for developing a robust system of 
AEO regime.  
 
The WB under  the Lao PDR 's Competitiveness & Trade Project (LCTP) has provided following support:  
 
1. Legal & procedural changes in customs for an effective AEO scheme.  
2. Development of detailed guidelines for processing of applications and validation of AEOs.  
 
Due to f und constraints, WB support is limited and hence, support of development partners/WTO is required 
for the following activities:  
 
(a) Revising the scheme for tier based AEO program as not many economic operators are attracted to 
join the scheme due to its stringent qualifying criteria for validation.  
(b) Capacity building of Customs staff for conducting AEO validation and development of Mut ual 
Recognition Agreements (MRAs) on AEOs.  
(c) Awareness generation of the private sector for developing voluntary compliance to AEO 
requirements . 
 G/TFA/N/LAO/3/Rev.1  
 
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  Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 8  Border Agency 
Cooperation  C 31 December 2022  31 December 2024  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
The WB under the Lao PDR 's Competitiveness & Trade Project (LCTP) has assured to provide following support:  
1. To evolve an efficient mechanism of border management involving Customs and other agencies for 
conducting joint inspection and clearance at the border using Customs ' ASYCUDA platform  
2. To develop special proce dures for clearance of perishables (like fresh fruits & vegetables and 
fisheries) on priority  
3. Capacity building of Customs, Food & Drugs, and Plant & Animal Quarantine departments for joint 
inspection and clearance by using Customs ' selectivity module  
 
However, due to fund constraints, WB support is only limited to in -country border -agency cooperation and 
hence, support of development partners/WTO is required for the following activities, which will involve cross -
border cooperation:  
(a) Provision of infrastruct ure for common border facilities or juxtaposed border posts with neighbouring 
countries at prominent border crossings  
(b) Development of procedures and instructions for Customs and other border agencies for allowing 
Single Stop Inspections in collaboration wit h the cross -border administrations at key border posts  
(c) Capacity building of the staff of Customs and other border agencies on cross -border cooperation for 
Single Stop Inspections and clearance  
 
Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 10.1 Formalities and 
Documentation 
Requirements  C 31 Dec ember  2022 31 December 2024  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
 
Review of border procedures is being undertaken by Customs and other border agencies under the WB 's Lao 
PDR's Competitiveness & Trade Project (LCTP), which has assured to provide following support:  
 
1. Revision of border procedures and documentation requirem ents of Customs, food & drugs, plant and 
animal quarantine departments with the purpose of reducing the processing time and cost.  
2. Development of suitable procedures for clearance of import, export & transit cargo transported by 
rail and multimodal means o f transport.  
3. Review of clearance procedures for the goods using the rail link connecting to Laem Chabang port in 
Thailand.  
4. Capacity building of Customs, Food & Drugs, and Plant & Animal Quarantine departments for applying 
revised procedures.  
5. Capacity bu ilding of the staff of these agencies for cross -border cooperation for Single Stop 
Inspections and clearance.  
 
Support of development partners/WTO is required for the revision of procedures followed by other agencies, 
like the Department of Import and Exp ort, Department of Standardization & Metrology, Department of 
Transport and Department of Mines etc. for following activities:  
 
(a) Review of NTMs in order to reduce paperwork and streamline compliance procedures.  
(b) Development of operational procedures, regulations, and instructions for reducing documentary 
compliance on import, export & transit.  
 G/TFA/N/LAO/3/Rev.1  
 
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  Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 10.2 Acceptance of Copies  
of supporting 
documents  C 31 Dec ember  2022 31 December 2024  
Donor: to be determined  
Progress in the provision of technical assistance and capacity building support:  
Customs and other agencies are accepting authenticated copies of supporting documents. With the roll out of 
LNSW, and provision for electronic processing of documents thereunder, documents will be available in the 
LNSW system for use by all the participating departments. Lao PDR does not require any assistance in this 
regard.  
 
However, assistance is needed to develop a government -wide strategy to replace the paper based with 
electronic processing, especially in issuing agencies and border agencies.  
 
Technical Assistance needed to promote coordination among related agencies to trans ition to electronic 
document.  
 
Human resources/training -capacity building for relevant officials to ensure enhanced border coordination.  
 
Assistance needed to capacitate other agencies with ICT tools and enablers in order to meet international 
standards fo r computerized system.  
 
Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 10.3 Use of International 
Standards  C 31 Dec ember  2022 31 December 2024  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
Under the Lao PDR 's Competitiveness & Trade Project (LCTP), the WB has assured support to the Lao Customs 
Department in revision of its law and regulations to align them with international standards, which includes 
the following:  
 
1. Revision of Customs law and regulations to  comply with the TFA provisions and Revised Kyoto 
Convention (RKC) standards;  
2. Capacity building of Customs for implementing the revised law and regulations.  
 
Similarly, FDD has been following the standards and guidelines laid down under the FAO WHO 's Codex 
Alimentarius for clearance of food items. On the same lines, DOLF has been applying guidelines issued by the 
World Organization for Animal Health (WOAH/OIE) in regulating import and export of cattle and poultry 
products. DOA too has been following th e International Plant Protection Convention (IPPC) in sampling and 
clearance of plant materials and pesticides etc. However, capacity building of the staff of these agencies for 
implementing above is required.   
Article 10.7 Common Border 
Procedures and 
Uniform 
Documentation 
Requirements  C 31 Dec ember  2022 31 December 2024  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
With the automation of customs processes using ASYCUDA, common procedures and documentation are being 
followed by Customs throughout the country. Further, under the Lao PDR 's Competitiveness & Trade Project 
(LCTP), the WB has assured support to key border agencies in using the ASYCUDA platform for conducting 
joint border inspection and clearance, which is expected to bring uniformity in border procedures across the 
country.  
 
However, support of development partners/WTO is required for following activities:  
 
(a) Regular study and review of procedures and documentation requirements of bo rder agencies, like 
the Department of Food & Drugs and Department of Agriculture (Plant & Animal Quarantine 
departments) to ensure that common border procedures and documentation requirements are 
followed throughout the country.  
(b) Development of monitoring mechanism for ensuring common border procedures and documentation, 
and  
(c) Capacity building of the staff of these agencies for implementing above changes.  
 G/TFA/N/LAO/3/Rev.1  
 
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  Provision  Heading/Description  Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 10.8 Rejected goods  C 31 Dec ember  2022 31 December 2024  
Donor: to be determined  
Progress in the provision of technical assistance and capacity building support:  
The Plant Protection Law of Lao PDR allows for return of goods back to the exporting country if the goods are 
found to be non -compliant with SPS regulations. However, there is no such provision under the Customs Law 
or other laws. Under the Lao PDR 's Competitiveness & Trade Project (LCTP), the WB has assured support t o 
LCD for revision of its law and regulations, which will also include suitable provision for allowing return of 
imported goods found inconsistent with SPS or other technical regulations in line with TFA provision.  
 
However, support of development partner s/WTO is required for the following activities:  
 
(a) Revision of laws and procedures of non -Customs agencies for complying with the TFA provisions.  
(b) Capacity building of the staff of these agencies for implementing above changes.  
 
Provision  Heading/Descript ion Category  Indicative date for 
implementation  Definitive date for 
implementation  
Article 12 Customs Cooperation  C 31 Dec ember  2022 31 December 2024  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
Under the Lao PDR 's Competitiveness & Trade Project (LCTP), the WB has assured support to LCD for revision 
of its law and regulations to be in line with TFA provision. The LCT will also support the capacity building of 
the staff for implementing.  
 
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