G/TFA/N/LAO/3  
 
19 March 2021  
(21-2318) Page: 1/8 
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  
The following communication, dated 11 March 2021 , is being circulated at the request of the 
delegation of Lao People's Democratic Republic  for Members' information.  
 
_______________  
 
 
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) . 
 
(1) Advance Rulings  
 
Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 3 Advance Rulings  C 31 Dec 2022  To be determined  
Donor: World Bank  
 
Progress in the provision of technical assistance and capacity building support:  
 
Customs department has established an Advance Ruling authority, however i mportant areas of valuation and 
entitlement to the duty exemption or relief have been left out from its purview. Further, the validity of the 
Advance Ruling has bee n kept only for a year, which  is very short and needs to be extended . These provisions 
will be added to the scheme vide suitable amendment of the legislative provisions .  
  
The WB  through the Lao PDR’s Competitiveness & Trade Project (LCTP) aims to provide  the following assistance:  
1. Suitable amendment of Customs Law to fully comply with the provisions of Article 3 of the TFA;  
2. Development of regulations and procedures in line wi th requirements of this Article;  
3. Capacity building to support the Advanced Rulings  during 2020.  
 
However , the Lao Customs Department (LCD)  will require assistance from development partners/WTO on –  
(i) Capacity development and training  of Customs staff , and 
(ii) Wider publicity of the scheme among the trade & industry to avail of its benefits.  
 
Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 5.3 Test procedures  C 31 Dec 2022  To be determined  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
 
There is no legal provision to allow for second test, but in exceptional cases, authorities allow re-test in 
government laboratories to verify if the goods are technically compliant. In case of Customs, t hese provisions 
will be added to the scheme vide suitable amendment of the Lao Customs Law . G/TFA/N/LAO/3  
 
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  The WB  through the Lao PDR’s Competitiveness & Trade Project (LCTP) is providing the following assistance:  
1. Suitable amendment of Customs Law to fully comply with the provisions of Article 5.3 of TFA;  
2. Development of regulations and procedures in line wi th requirements of this Article;  
3. Capacity building to support above measures in a limited way.  
 
Support from development partners/WTO  is required for the following activities:  
(i) Regulato ry changes in non -customs agencies in line with the requirements of this article,  
(ii) Capacity building of these agencies, particularly for identifying and notifying the accredited 
laboratories for second tests, and 
(iii) Wider publicity of the scheme among the trade & industry to avail of its benefits.  
 
Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 7.2 Electronic Payment   C 31 Dec 2022  To be determined  
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 e xports. Non-customs agencies (NC As) are unable to allow 
it due to resource constraints in providing IT infrastru cture to their field formations. There is no support 
available from any donor in this regard.  
 
Therefore, the Lao PDR  will require assistance from devel opment partners/WTO on –  
(i) Provision of I CT infrastructure in non-Customs agencies  for enabling them to accept electronic 
payment s of fees and processing charges relating to import, export and transit   
(ii) Requisite changes in regulation & procedures, and  
(iii) Capac ity building of these agencies.  
     
Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 7.4 Risk Management  C 31 Dec 2022  To be determined  
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 level 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 invol ving Customs and other border agencies is planned to undertake joint examination and 
clearance using the Customs’ selectivity module.  
 
The WB under the Lao PDR’s Competitiveness & Trade Project (LCTP)  aims to provide following support:  
1. To enhance  the matu rity level of the LCD’s exi sting risk 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  
 
However, due to fund constraints, support of the WB project is lim ited, and hence Lao PDR will require following 
assistance from the development partners/WTO:  
 
1. Technical support 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  
2. Upgradation of the Risk Management S ystem in Lao Customs following international best practices  
3. Capacity building of Customs & other border agencies for above functions beyond 2020  
 
 G/TFA/N/LAO/3  
 
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  Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 7.5 Post-clearance Audit  C 31 Dec 2022  To be determined  
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 them 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 t raders’ own 
financial accounts and commercial records  
3. Introduction of post clearance audit in other 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 support is limited and hence, support of development partners/WTO is 
required for the following activities beyond 2020:  
(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  
 
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 2022  To be determined  
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 February 2019, it tried to include other border agencies as well.  
The WB under the Lao PDR’s Competitiveness & Trade Project (LCTP ) has assured to provide following support:  
1. To Customs, for conducting TRS survey (using WCO’s TRS software) in 2020  
2. Capacity building of non -Customs agencies at the border for joining in the future TRS surveys  
However, due to fund constraints, WB support is limited and hence, support of development partners/WTO is 
required for the following activities beyond 2020:  
(a) To conduct TRS survey for Customs and other border agencies beyond 2020, particularly including the 
time taken in issuing licenses and f or other documentary compliances  
(b) Capacity building of the officials of Customs and other border agencies for this purpose  
 G/TFA/N/LAO/3  
 
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  Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 7.7 Trade Facilitation 
Measures for 
Authorized Operators  C 31 Dec 2022  To be determined  
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 assistance 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 assured to provide following support:  
1. Legal & procedural changes in customs for an effective AEO scheme  
2. Develo pment of detailed guidelines for processing of applications and validation of AEOs  
 
However, due to fund constraints, WB support is limited and hence, support of development partners/WTO is 
required for the following activities beyond 2020:  
 
(a) Capacity building of Customs staff for conducting AEO validation and development of Mutual 
Recognition Agreements (MRAs) on AEOs  
(b) Awareness generation of the private sector for developing voluntary compliance to AEO requirements  
 
Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 7.8 Expedited Shipments  C 31 Dec 2022  To be determined  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
 
Special procedure is needed for fast track release of expedited shipments under the TFA. The WB under the 
Lao PDR’s Competitiveness & Trade Project (LCTP)  has assured to provide following support:  
1. To help LCD in developing special procedures and operational guidelines for fast track processing of 
expedited shipments, like courier parcels etc. arriving by air   
2. Capacity building of Lao Customs for above  
 
Support of development partners/WTO is require d for following activities:  
(a) Development of procedures and instructions for non -Customs agencies in fast track clearance of 
expedited shipments  
(b) Capacity building on non -Customs agencies in quick clearance of expedited shipments  
 G/TFA/N/LAO/3  
 
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  Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 8  Border Agency 
Cooperation  C 31 Dec 2022  To be determined  
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 a n 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 s pecial procedures for clearance of perishables (like fresh fruits & vegeta bles 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 beyond 2020 , which will 
involve cross -border cooperation : 
(a) Provision of infrastructure for common border facilities or juxtaposed border posts with neighbouring 
countries at prominent border cros sings 
(b) Development of procedures and instructions for Customs and other border agencies for allowing Single 
Stop Inspections in collaboration with 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 2022  To be determined  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
 
Review of border procedures is planned 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 requirements of Cus toms, 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 of 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  
 
Support of development partne rs/WTO is required for the revision of procedures followed by other agencies, 
like the Department of Standardization & Measures, 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 and instructions for reducing documentary compliance on 
import, export & transit  
(c) Capacity building of the staff of these agencies for on cross -border cooperation for Single Stop 
Inspections and clearance  
 G/TFA/N/LAO/3  
 
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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 2022  To be determined  
Donor: World Bank  
Progress in the provision of technical assistance and capacity building support:  
Customs and other agencies are accepting authenticated copies of supporting documents and Lao PDR does 
not require any assistance in this regard.  
 
Provision  Heading/Descripti on Category  Indicative date 
for 
implementation  
 Definitive date for 
implementation  
 
Article 10.3 Use of International 
Standards  C 31 Dec 2022  To be determined  
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. Revisio n 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 during 2020.  
 
Support of develop ment partners/WTO is required for other line departments, like the Department of 
Agriculture, Food & Drug Department, Department of Standardization & Measures, Department of Transport, 
Department of Industry & Handicraft and Department of Mines etc. for following activities : 
(a) Revision of th eir laws and regulations to comply with the international standards in respective areas  
(b) Development of operational procedures and instructions to translate them into action, and  
(c) Capacity building of the staff of these agencies for implementing above changes, especially after 2020, 
when WB project would have exhausted its allocated funds under the current project.  
 
Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 10.4 Single Window  C 31 Dec 2022  To be determined  
Donor: None 
Progress in the provision of technical assistance and capacity building support:  
 
Lao PDR is engaged in establishment of National Single Window (NSW), in which a pilot is currently being run 
at its leading border post for import of automobiles. On successful completion, the NSW will be scaled up to 
include other commodities and the remaining border posts too.  
 
Support of development partners/WTO is required for the following activities : 
(a) Development o f infrastructure and Technical Assistance to scale up the National Single Window to 
include other products and remaining border posts  
(b) Drafting of suitable procedures in different departments for operationalizing NSW to clear other 
commodities  
(c) Capacity building of the staff of these agencies for implementing above changes  
 G/TFA/N/LAO/3  
 
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  Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 10.7 Common Border 
Procedures and 
Uniform 
Documentation 
Requirements  C 31 Dec 2022  To be determined  
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 activ ities: 
(a) Regular study and review of procedures and documentation requirements of border agencies, like the 
Department of Food & Drugs and Department of Agriculture (Plant & Animal Quarantine departments) 
to ensure that common border procedures and documenta tion 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.  
 
Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 10.8 Rejected goods  C 31 Dec 2022  To be determined  
Donor: None 
Progress in the provision of technical assistance and capacity building support:  
 
The Plant Protection L aw 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 P DR’s Competitiveness & Trade Project (LCTP) , the WB has assured support to 
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 regulati ons in line with TFA provision.  
Support of development partners /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 fo r implementing above changes  
 
Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 11  Freedom of Transit  C 31 Dec 2022  To be determined  
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 Lao Customs 
Department for the following activities:  
1. Drafting of operational  procedures to implement  ASEAN Framework Agreement on Facilitation of Goods 
in Transit (AFAFGIT), ASEAN Customs Transit System (AC TS) and other such transit agreements  
2. Develop ment of  suitable transit procedures to cover the multimodal movement of goods, including 
that by Lao-China rail that  is scheduled to start in 2021  
3. Capacity building of Lao Customs for implementing the above procedures.  
 
Support of development partners /WTO  is required for other line departments, like the Department of 
Agriculture, Food & Drug Department, Department of Standardization & Measures and Department of Transport, 
for following activities : 
(a) Development of simplified procedures by non -customs agencies for seamless transit of goods across 
ASEAN by road, rail, and multi -modal means of transport   
(b) Capacity building of the staff of these agencies for implementing above changes . 
 G/TFA/N/LAO/3  
 
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  Provision  Heading/Description  Category  Indicative date 
for 
implementation  Definitive date for 
implementation  
 
Article 12 Customs Cooperation  C 31 Dec 2022  To be determined  
Donor: None 
Progress in the provision of technical assistance and capacity building support:  
 
Currently, no donor support is available for customs cooperation.  
 
Support of development partners /WTO  is required for Lao Customs for following activities : 
(a) Development of protocols and procedures to implement various Customs cooperation agreement  
(b) Provision of technical assistance and ICT infrastructure for exchange of information with other customs 
administrations  
(c) Capacity building of the staff for implementing above.  
 
__________