G/VAL/N/1/LAO/1  
 
10 July 2013  
(13-3669)  Page: 1/40  
Committee on Customs Valuation  Original: English  
 
 NOTIFICATION UNDER ARTICLE 22 OF THE AGREEMENT ON 
IMPLEMENTATION OF ARTICLE VII OF THE GENERAL 
AGREEMENT ON TARIFFS AND TRADE 1994 
LAO, PEOPLE'S DEMOCRATIC REPUBLIC  
 The following communication, dated 24 June 2013,  is being circulated at the request of the 
delegation of Lao, People's Democratic Republic. 
 
 
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The Foreign Trade Policy Department, Ministry of Industry and Commerce as the World Trade Organization focal point of Lao PDR has the honour to notify the Committee on Customs Valuation 
regarding the legislation of Lao PDR relevant to the Customs Valuation Agreement attached as 
follows:  
- Customs Law (revised version), No. 04/NA dated 20 December 2011; 
- Instruction of the Minister of Finance on Customs Valuation of Imported Goods 
No. 1537/MOF dated 4 June 2012; and 
- Instruction on Supplementary Explanation on Customs Valuation for Imported Goods, 
No. 11589/CD dated 24 July 2012. 
  
 
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  LAO PEOPLE'S DEMOCRATIC REPUBLIC 
Peace Independence Democracy Unity Prosperity 
*****===000===***** 
Ministry of Finance 
Customs Department No. 11589/CD 
Vientiane Capital, 24 July 2012 
Instruction on 
Supplementary Explanation on Cust oms Valuation for Imported Goods 
- Pursuant to the Customs Law No. 04/NA, dated 20 December 2011, Chapter 2, Article 13 on 
Customs Valuation for Importation; 
- Pursuant to the Finance Ministerial Instruction on Customs Valuation for Imported Goods 
No. 1537/MOF, dated 4 June 2012. 
The Director General of Customs hereby issue instruction as follow: 1. Objective 
This instruction provides additional explanat ion on the principles and methods for customs 
valuation as stipulated in the Finance Ministerial Instruction on Customs Valuation for Imported Goods No. 1537/MOF, dated 4 June 2012 (hereafter called "the Ministerial Instruction"), to ensure 
implementation of customs valuation is performed in a uniform manner across the country. 
All Articles mentioned in this instruction refer to the Articles set forth in the Ministerial Instruction. 
Terms applied in this instruction have the same definition described in the Ministerial Instruction. 
2. General Explanation 
 2.1  Sequential Application of Valuation Methods 
2.1.1  Articles 4 through 9 define how the customs value of the imported goods is to be 
determined under the provision of the Ministerial Instruction.  The methods of valuation are set out 
in a sequential order of application.  The first method for customs valuation is defined in Article 4 
and imported goods are to be valued in accordance with the provision of this article whenever the conditions prescribed therein are fulfilled. 
2.1.2  In the case where the customs value ca nnot be determined under the provisions of 
Article 4, it is to be determined by proceeding sequentially through the succeeding Articles to the first such Article under which the customs value can be determined Except as provided in Article 3, it is only when the customs value cannot be determined under the provisions of a particular Article 
that the provisions of the next Article in the sequence can be used. 
In addition, in the case where the customs valu e cannot be determined under the provision of 
Article 4, there shall normally be a process of consultation between the customs administration 
and the importer with a view to arriving at a basi s of value under the provisions in Article 5 or 6. 
For example:  the importer may have the inform ation about the customs value of identical or 
similar imported goods which may not be available to the customs administration.  On the other 
hand, the customs administration may have information about the customs value of identical or 
similar imported goods which may not be available to the importer.  A process of consultation between the two parties will enable exchange of  information, subject to the requirements of 
commercially confidentiality, with a view to de termining a proper basis of value for customs 
purposes. 
2.1.3  If the importer does not request that the order of Articles 7 and 8 be reversed, the 
normal order of the sequence is to be followed.  If  the importer does so request but it then proves 
to be determined under the provisions of Article 7, if it can be so determined. G/VAL/N/1/LAO/1 
 
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  2.1.4  Where the customs value cannot be dete rmined under the provisions of Articles 4 
through 8 it is to be determined under the provisions of Article 9. 
2.1.5  The customs officer should select the method for customs valuation in sequential order.  2.2  Use of Generally Acce pted Accounting Principles 
2.2.1  "Generally accepted accounting principles" refers to the recognized consensus or 
substantial authoritative support within state authorities at a particular time as to which economic resources and obligations should be recorded as assets and liabilities, which changes in assets and 
liabilities should be recorded, how the assets and liabilities and changes in them should be 
measured, what information should be disclosed and how it should be disclosed, and which financial statements should be prepared. These standards may be broad guidelines of general application as well as detailed practices and procedures. 
2.2.2  For the purpose of the Ministerial Instru ction, the customs administration shall utilize 
information prepared in a manner consistent with generally accepted accounting principles in the country which is appropriate for the relevant Articles. For example: the determination of usual 
profit and general expenses under the provisions of Article 7 would be carried out utilizing 
information prepared in a manner consistent with generally accepted accounting principles of the country of importation. On the other hand, the determination of usual profit and general expenses 
under the provisions of Article 8 would be carried out utilizing information prepared in a manner 
consistent with generally accepted accounting principles of the country of production. As a further example, the determination of an element provid ed for in paragraph 1.2 (ii) of Article 10 
undertaken in Lao PDR of importation would be carried out utilizing information in a manner 
consistent with the generally accepted accounting principles of Lao PDR. 
3. Explanation on Article 2 "persons" includes legal persons where appropriate. 
For the purposes of this Agreement, one person  shall be deemed to control another when the 
former is legally or operationally in a position to exercise restraint or direction over the latter. 
4. Explanation on Article 4 Price Actually Paid or Payable 
1. The price actually paid or payable is the total payment made or to be made by the buyer to 
or for the benefit of the seller for the imported goods.  The payment need not necessarily take the f o r m  o f  a  t r a n s f e r  o f  m o n e y .   P a y m e n t  m a y  b e  m a d e  b y  w a y  o f  l e t t e r s  o f  c r e d i t  o r  n e g o t i a b l e  instruments.  Payment may be made directly or indirectly.  For example, an indirect payment 
would be the settlement by the buyer, whether in wh ole or in part, of a debt owed by the seller. 
The price actually paid or payable include all payments that have been already paid or are payable 
under the sale condition set by the seller to the buyer or to the third party for exercising such 
imposed obligation. 
2. Activities undertaken by the buyer on the buyer's own account, other than those for which 
an adjustment is proved in Article 10, are not cons idered to be an indirect payment to the seller, 
even though they might be regarded as of benefit to the seller.  The costs of such activities shall 
not, therefore, be added to the price actually pa id or payable in determining the customs value. 
3. The customs value shall not include the follow ing charges or costs, provided that they are 
distinguished from the price actually paid or payable for the imported goods: 
(1) charges for construction, erection, assembly, maintenance or technical assistance, 
undertaken after importation on imported goods such as industrial plant, machinery or equipment; 
(2) the cost of transport after importation; 
(3) duties and taxes of Lao PDR. G/VAL/N/1/LAO/1 
 
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  4.  The price actually paid or payable refers to the price for the imported goods.  Thus the flow 
of dividends or other payments from the buyer to the seller that do not relate to the imported goods are not part of the customs value. 
Paragraph 1.1 (iii) 
Among restrictions which would not render a price actually paid or payable unacceptable are 
restrictions which do not substantially affect the value of the goods.  An example of such restrictions would be the case where a seller requires a buyer of automobiles not to sell or exhibit 
them prior to a fixed date which represents the beginning of a model year. 
Paragraph 1.2 1.  If the sale or price is subject to some condition or consideration for which a value cannot be 
determined with respect to the goods being valued, the transaction value shall not be acceptable 
for customs purposes.  Some examples of this include: 
(a) the seller establishes the price of the imported goods on condition that the buyer will also 
buy other goods in specified quantities; 
(b) the price of the imported goods is dependent upon the price or prices at which the buyer of 
the imported goods sells other goods to the seller of the imported goods; 
(c) the price is established on the basis of a form of payment extraneous to the imported 
goods, such as where the imported goods are semi-finished goods which have been 
provided by the seller on condition that the seller will receive a specified quantity of the finished goods. 
2.  However, conditions or considerations relating to the production or marketing of the 
imported goods shall not result in rejection of the transaction value.  For example, the fact that 
the buyer furnishes the seller with engineering an d plans undertaken in the country of importation 
shall not result in rejection of the transaction value for the purposes of Article 4. Likewise, if the 
buyer undertakes on the buyer's own account, even though by agreement with the seller, activities 
relating to the marketing of the imported goods, the value of these activities is not part of the 
customs value nor shall such activities result in rejection of the transaction value. 
Paragraph 2 
1. Paragraphs 2.1 and 2.2 of Article 4 provide different means of establishing the acceptability 
of a transaction value. 
2. Paragraph 2.1 provides that where the buye r and the seller are related, the circumstances 
surrounding the sale shall be examined and the tran saction value shall be accepted as the customs 
value provided that the relationship did not influence the price.  It is not intended that there should be an examination of the circumstances in all cases where the buyer and the seller are 
related.  Such examination will only be required  where there are doubts about the acceptability of 
the price.  Where the customs administrations have no doubts about the acceptability of the price, it should be accepted without requesting further information from the importer.  For example, the 
customs administration may have previously examined the relationship, or it may already have 
detailed information concerning the buyer and the seller, and may already be satisfied from such examination or information that the relationship did not influence the price. 
3. Where the customs administration is unable to  accept the transaction value without further 
inquiry, it should give the importer an opportunity to supply such further detailed information as 
may be necessary to enable it to examine the circumstances surrounding the sale.  In this context, the customs administration should be prepared to examine relevant aspects of the transaction, 
including the way in which the buyer and seller organize their commercial relations and the way in 
which the price in question was arrived at, in order to determine whether the relationship influenced the price.  Where it can be shown that the buyer and seller, although related under the 
provisions of Article 2, buy from and sell to each other as if they were not related, this would 
demonstrate that the price had not been influenced by the relationship.  As an example of this, if 
the price had been settled in a manner consistent wi th the normal pricing practices of the industry 
in question or with the way the seller settles prices for sales to buyers who are not related to the G/VAL/N/1/LAO/1 
 
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  seller, this would demonstrate that the price had not been influenced by the relationship.  As a 
further example, where it is shown that the price is  adequate to ensure recovery of all costs plus a 
profit which is representative of the firm's overal l profit realized over a representative period of 
time (e.g. on an annual basis) in sales of goods of the same class or kind, this would demonstrate 
that the price had not been influenced. 
4. Paragraph 2.2 provides an opportunity for the importer to demonstrate that the transaction 
value closely approximates to a "test" value previously accepted by the customs administration 
and is therefore acceptable under the provisions of  Article 4.  Where a test under paragraph 2.1 is 
met, it is not necessary to examine the question of influence under paragraph 2.1.  If the customs 
administration has already sufficient information to be satisfied, without further detailed inquiries, that one of the tests provided in paragraph 2.2 has been met, there is no reason for it to require 
the importer to demonstrate that the test can be met.  In paragraph 2.2 the term "unrelated 
buyers" means buyers who are not related to the seller in any particular case. 
Paragraph 2.2 
A number of factors must be taken into consideration in determining whether one value "closely 
approximates" to another value.  These factors include the nature of the imported goods, the nature of the industry itself, the season in which the goods are imported, and, whether the 
difference in values is commercially significant.  Since these factors may vary from case to case, it 
would be impossible to apply a uniform standard such as a fixed percentage, in each case.  For example, a small difference in value in a case in volving one type of goods could be unacceptable 
while a large difference in a case involving another type of goods might be acceptable in 
determining whether the transaction value closely a pproximates to the "test" values set forth in 
paragraph 2.2 of Article 4. 
5. Explanation on Article 5 
1.  In applying Article 5, the customs administration shall, wherever possible, use a sale of 
identical goods at the same commercial level and in substantially the same quantities as the goods being valued. Where no such sale is found, a sale of identical goods that takes place under any 
one of the following three conditions may be used: 
(a) a sale at the same commercial level but in different quantities; 
(b) a sale at a different commercial level but in substantially the same quantities; or (c) a sale at a different commercial level and in different quantities. 
2.  Having found a sale under any one of these three conditions adjustments will then be made, 
as the case may be, for: 
(a) quantity factors only; 
(b) commercial level factors only; or 
(c) both commercial level and quantity factors. 
3.  The expression "and/or" allows the flexib ility to use the sales and make the necessary 
adjustments in any one of the three conditions described above. 
4.  For the purposes of Article 5, the transaction value of identical imported goods means a 
customs value, adjusted as provided for in paragraphs 1.2 and 2, which has already been accepted under Article 4. 
5.  A condition for adjustment because of different commercial levels or different quantities is 
that such adjustment, whether it leads to an increase or a decrease in the value, be made only on the basis of demonstrated evidence that clearl y establishes the reasonableness and accuracy of 
the adjustments, e.g. valid price lists containing prices referring to different levels or different 
quantities.  As an example of this, if the imported goods being valued consist of a shipment of 10 units and the only identical imported goods for which a transaction value exists involved a sale 
of 500 units, and it is recognized that the seller gr ants quantity discounts, the required adjustment 
may be accomplished by resorting to the seller's price list and using that price applicable to a sale of 10 units.  This does not require that a sale had to  have been made in quantities of 10 as long as G/VAL/N/1/LAO/1 
 
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  the price list has been established as being bona fide through sales at other quantities.  In the 
absence of such an objective measure, however,  the determination of a customs value under the 
provisions of Article 5 is not appropriate. 
6.  Explanation Article 6 
1.  In applying Article 6, the customs administration shall, wherever possible, use a sale of 
similar goods at the same commercial level and in substantially the same quantities as the goods being valued.  Where no such sale is found, a sale of similar goods that takes place under any one 
of the following three conditions may be used: 
(a) a sale at the same commercial level but in different quantities; 
(b) a sale at a different commercial level but in substantially the same quantities; or (c) a sale at a different commercial level and in different quantities. 
2.  Having found a sale under any one of these three conditions adjustments will then be made, 
as the case may be, for: 
(a) quantity factors only; 
(b) commercial level factors only; or 
(c) both commercial level and quantity factors. 
3.  The expression "and/or" allows the flexib ility to use the sales and make the necessary 
adjustments in any one of the three conditions described above. 
For the purpose of Article 6, the transaction va lue of similar imported goods means a customs 
value, adjusted as provided for in paragraphs 1.2 and 2, which has already been accepted under 
Article 4. 
4. A condition for adjustment because of different commercial levels or different quantities is 
that such adjustment, whether it leads to an increase or a decrease in the value, be made only on the basis of demonstrated evidence that clearl y establishes the reasonableness and accuracy of 
the adjustment, e.g. valid price lists containing prices referring to different levels or different 
quantities.  As an example of this, if the import ed goods being valued consist of a shipment of 10 
units and the only similar imported goods for which a transaction value exists involved a sale of 
500 units, and it is recognized that the seller grants quantity discounts, the required adjustment 
may be accomplished by resorting to the seller's price list and using that price applicable to a sale of 10 units.  This does not require that a sale had to  have been made in quantities of 10 as long as 
the price list has been established as being bona fide through sales at other quantities.  In the 
absence of such an objective measure, however,  the determination of a customs value under the 
provisions of Article 6 is not appropriate. 
7.  Explanation on Article 7 
1. The term "unit price at which ... goods are sold in the greatest aggregate quantity" means 
the price at which the greatest number of units is sold in sales to persons who are not related to the persons from whom they buy such goods at the first commercial level after importation at 
which such sales take place. 
2. As an example of this, goods are sold from a price list which grants favourable unit prices for 
purchases made in larger quantities. 
Sale quantity Unit price Number of sales Total quantity 
sold at each price 
1-10 units 100 10 sales of 5 units 
5 sales of 3 units 65 
11-25 units 95 5 sales of 11 units 55 
over 25 units 90 1 sale of 30 units 
1 sale of 50 units 80 
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  The greatest number of units sold at a price is 80; therefore, the unit price in the greatest 
aggregate quantity is 90. 
3. As another example of this, two sales occur. In  the first sale 500 units are sold at a price of 
95 currency units each.  In the second sale 400 units are sold at a price of 90 currency units each. 
In this example, the greatest number of units sold  at a particular price is 500; therefore, the unit 
price in the greatest aggregate quantity is 95. 
4. A third example would be the following situation where various quantities are sold at various 
prices. 
Sales 
Sale quantity Unit price 
40 units 100 
30 units 90 
15 units 100 
50 units 95 
25 units 105 
35 units 90 
5 units 100 
 
Totals Unit price Total quantity sold 
65 90 
50 95 
60 100 
25 105 
 
In this example, the greatest number of units sold  at a particular price is 65; therefore, the unit 
price in the greatest aggregate quantity is 90. 
5. Any sale in the importing country, as described in paragraph 1 above, to a person who 
supplies directly or indirectly free of charge or at reduced cost for use in connection with the 
production and sale for export of the imported goods any of the elements specified in paragraph 1.2 of Article 10, should not be taken into account in establishing the unit price for the purposes of 
Article 7. 
6. It should be noted that "profit and general expenses" referred to in paragraph 1 of Article 7 
should be taken as a whole.  The figure for the pu rposes of this deduction should be determined on 
the basis of information supplied by or on behalf of the importer unless the importer's figures are 
inconsistent with those obtained in sales in the country of importation of imported goods of the same class or kind.  Where the importer's figures are inconsistent with such figures, the amount for profit and general expenses may be based upon relevant information other than that supplied 
by or on behalf of the importer. 
7. The "general expenses" include the direct and indirect costs of marketing the goods in 
question. 
8. Local taxes payable by reason of the sale of the goods for which a deduction is not made 
under the provisions of paragraph 1.4 of Articl e 7 shall be deducted under the provisions of 
paragraph 1.1 of Article 7. 
9. In determining either the commissions or th e usual profits and general expenses under the 
provisions of paragraph 1 of Article 7, the question whether certain goods are "of the same class or kind" as other goods must be determined on a case-by-case basis by reference to the 
circumstances involved.  Sales in the country of importation of the narrowest group or range of 
imported goods of the same class or kind, which includes the goods being valued, for which the 
necessary information can be provided, should be examined. For the purposes of Article 7, "goods 
of the same class or kind" includes goods impo rted from the same country as the goods being 
valued as well as goods im ported from other countries. G/VAL/N/1/LAO/1 
 
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  10. For the purposes of paragraph 2 of Article 7,  the "earliest date" shall be the date by which 
sales of the imported goods or of identical or  similar imported goods are made in sufficient 
quantity to establish the unit price. 
11. Where the method in paragraph 2 of Article 7 is used, deductions made for the value added 
by further processing shall be based on objective and quantifiable data relating to the cost of such 
work.  Accepted industry formulas, recipes, meth ods of construction, and other industry practices 
would form the basis of the calculations. 
12. It is recognized that the method of valuation provided for in paragraph 2 of Article 7 would 
normally not be applicable when, as a result of the further processing, the imported goods lose their identity.  However, there can be instances wh ere, although the identity of the imported goods 
is lost, the value added by the processing can be determined accurately without unreasonable 
difficulty.  On the other hand, there can also be instances where the imported goods maintain their 
identity but form such a minor element in the good s sold in the country of importation that the use 
of this valuation method would be unjustified.  In view of the above, each situation of this type 
must be considered on a case-by-case basis. 
8.  Explanation on Article 8 1. As a general rule, customs value is determined  under the Ministerial Instruction on the basis 
of information readily available in the country of importation.  In order to determine a computed 
value, however, it may be necessary to examin e the costs of producing the goods being valued 
and other information which has to be obtained from outside the country of importation. Furthermore, in most cases the producer of th e goods will be outside the jurisdiction of the 
authorities of the country of importation.  The us e of the computed value method will generally be 
limited to those cases where the buyer and seller are related, and the producer is prepared to 
supply to the authorities of the country of importation the necessary costings and to provide 
facilities for any subsequent veri fication which may be necessary. 
2. The "cost or value" referred to in paragraph 1. 1 of Article 8 is to be determined on the basis 
of information relating to the production of the goods being valued supplied by or on behalf of the 
producer. It is to be based upon the commercial accounts of the producer, provided that such 
accounts are consistent with the generally accepted accounting principles applied in the country where the goods are produced. 
3. The "cost or value" shall include the cost of elements specified in paragraphs (1.1) (ii) and 
(iii) of Article 10.  It shall also include the value, apportioned as appropriate under the provisions 
of the relevant note to Article 10, of any element specified in paragraph 1.2 (iv) of Article 10 which 
has been supplied directly or indirectly by the bu yer for use in connection with the production of 
the imported goods.  The value of the elements sp ecified in paragraph 1.2 (iv) of Article 10 which 
are undertaken in the country of importation shall be included only to the extent that such elements are charged to the producer.  It is to be understood that no cost or value of the elements 
referred to in this paragraph shall be counted twice in determining the computed value. 
4. The "amount for profit and general expenses" referred to in paragraph 1.2 of Article 8 is to 
be determined on the basis of information suppli ed by or on behalf of the producer unless the 
producer's figures are inconsistent with those usually reflected in sales of goods of the same class 
or kind as the goods being valued which are made by producers in the country of exportation for 
export to the country of importation. 
5. It should be noted in this context that the "amount for profit and general expenses" has to 
be taken as a whole.  It follows that if, in any particular case, the producer's profit figure is low 
and the producer's general expenses are high, th e producer's profit and general expenses taken 
together may nevertheless be consistent with that usually reflected in sales of goods of the same 
class or kind.  Such a situation might occur, for example, if a product were being launched in the 
country of importation and the producer accepted a nil or low profit to offset high general expenses associated with the launch.  Where the producer can demonstrate a low profit on sales of the imported goods because of particular commercial circumstances, the producer's actual profit 
figures should be taken into account provided that the producer has valid commercial reasons to 
justify them and the producer's pricing policy re flects usual pricing policies in the branch of G/VAL/N/1/LAO/1 
 
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  industry concerned.  Such a situation might occur,  for example, where producers have been forced 
to lower prices temporarily because of an unforesee able drop in demand, or where they sell goods 
to complement a range of goods being produced in the country of importation and accept a low profit to maintain competitively.  Where the prod ucer's own figures for profit and general expenses 
are not consistent with those usually reflected in sales of goods of the same class or kind as the 
goods being valued which are made by producers in  the country of exportation for export to the 
country of importation, the amount for profit an d general expenses may be based upon relevant 
information other than that supplied by or on behalf of the producer of the goods. 
6. Where information other than that supplied by or on behalf of the producer is used for the 
purposes of determining a computed value, the authorities of the importing country shall inform the importer, if the latter so requests, of the source of such information, the data used and the 
calculations based upon such data, subject to the provisions of Article 16. 
7. The "general expenses" referred to in paragraph 1.2 of Article 8 covers the direct and 
indirect costs of producing and selling the goods for export which are not included under 
paragraph 1.1 of Article 8. 
8. Whether certain goods are "of the same class or kind" as other goods must be determined 
on a case-by-case basis with reference to the circumstances involved.  In determining the usual 
profits and general expenses under the provisions of Article 6, sales for export to the country of 
importation of the narrowest group or range of goods, which includes the goods being valued, for which the necessary information can be provided, should be examined.  For the purposes of Article 6, "goods of the same class or kind" must be from the same country as the goods being 
valued. 
9. Explanation on Article 9 1.  Customs values determined under the provisio ns of Article 9 should, to the greatest extent 
possible, be based on previously determined customs values. 
2. The methods of valuation to be employed und er Article 9 should be those laid down in 
Articles 4 through 8 but a reasonable flexibility in the application of such methods would be in 
conformity with the aims and provisions of Article 9. 
3. Some examples of reasonable flexibility are as follows: 3.1  Identical goods - the requirement that the identical goods should be exported at or about 
the same time as the goods being valued could be flexibly interpreted; identical imported 
goods produced in a country other than the country of exportation of the goods being valued 
could be the basis for customs valuation; customs values of identical imported goods already determined under the provisions of Articles 7 and 8 could be used. 
3.2  Similar goods - the requirement that the similar goods should be exported at or about the 
same time as the goods being valued could be flexibly interpreted; similar imported goods produced in a country other than the country of exportation of the goods being valued could 
be the basis for customs valuation; customs values of similar imported goods already 
determined under the provisions of Articles 7 and 8 could be used. 
3.3  Deductive method - the requirement that the goods shall have been sold in the "condition as 
imported" in paragraph 1 of Article 7 could be flexibly interpreted; the "90 days" 
requirement could be administered flexibly. 
10.  Explanation on Article 10 Paragraph 1.1(i) 
The term "buying commissions" means fees paid by  an importer to the importer's agent for the 
service of representing the importer abroad in the purchase of the goods being valued. 
1. There are two factors involved in the a pportionment of the elements specified in 
paragraph 1.2 (ii) of Article 10 to the imported go ods - the value of the element itself and the way 
in which that value is to be apportioned to the imported goods.  The apportionment of these G/VAL/N/1/LAO/1 
 
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  elements should be made in a reasonable manner appropriate to the circumstances and in 
accordance with generally accepted accounting principles. 
2. Concerning the value of the element, if the importer acquires the element from a seller not 
related to the importer at a given cost, the value of the element is that cost.  If the element was 
produced by the importer or by a person related to the importer, its value would be the cost of 
producing it.  If the element had been previously  used by the importer, regardless of whether it 
had been acquired or produced by such importer, the original cost of acquisition or production 
would have to be adjusted downward to reflect its use in order to arrive at the value of the 
element. 
3. Once a value has been determined for the element, it is necessary to apportion that value to 
the imported goods.  Various possibilities exist.  For example, the value might be apportioned to 
the first shipment if the importer wishes to pay duty on the entire value at one time.  As another 
example, the importer may request that the va lue be apportioned over the number of units 
produced up to the time of the first shipment.  As a further example, the importer may request 
that the value be apportioned over the entire anticipated production where contracts or firm 
commitments exist for that production.  The method of apportionment used will depend upon the documentation provided by the importer. 
4. As an illustration of the above, an importer provides the producer with a mould to be used in 
the production of the imported goods and contracts with the producer to buy 10,000 units. 
By the time of arrival of the first shipment of 1,000 units, the producer has already produced 
4,000 units.  The importer may request the customs administration to apportion the value of the 
mould over 1,000 units, 4,000 units or 10,000 units. 
Paragraph 1.2 (iv) 1. Additions for the elements specified in paragr aph 1.2 (iv) of Article 10 should be based on 
objective and quantifiable data. In order to mi nimize the burden for both the importer and 
customs administration in determining the values to be added, data readily available in the buyer's commercial record system should be used in so far as possible. 
2. For those elements supplied by the buyer which were purchased or leased by the buyer, the 
addition would be the cost of the purchase or th e lease.  No addition shall be made for those 
elements available in the public domain, other than the cost of obtaining copies of them. 
3. The ease with which it may be possible to calc ulate the values to be added will depend on a 
particular firm's structure and management practice, as well as its accounting methods. 
4. For example, it is possible that a firm which imports a variety of products from several 
countries maintains the records of its design centre outside the country of importation in such a 
way as to show accurately the costs attributable to a given product.  In such cases, a direct 
adjustment may appropriately be made under the provisions of Article 10. 
5. In another case, a firm may carry the cost of the design centre outside the country of 
importation as a general overhead expense without allocation to specific products.  In this 
instance, an appropriate adjustment could be made  under the provisions of Article 10 with respect 
to the imported goods by apportioning total design centre costs over total production benefiting from the design centre and adding such apportioned cost on a unit basis to imports. 
6. Variations in the above circumstances will, of course, require different factors to be 
considered in determining the proper method of allocation. 
7. In cases where the production of the element in question involves a number of countries and 
over a period of time, the adjustment should be li mited to the value actually added to that element 
outside the country of importation. G/VAL/N/1/LAO/1 
 
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  Paragraph 1.3 
1. The royalties and licence fees referred to in paragraph 1.3 of Article 10 may include, among 
other things, payments in respect to patents, tr ademarks and copyrights.  However, the charges 
for the right to reproduce the imported goods in the country of importation shall not be added to 
the price actually paid or payable for the imported goods in determining the customs value. 
2. Payments made by the buyer for the right to distribute or resell the imported goods shall not 
be added to the price actually paid or payable for the imported goods if such payments are not a 
condition of the sale for export to the country of importation of the imported goods. 
Paragraph 2 Where objective and quantifiable data do not exist with regard to the additions required to be 
made under the provisions of Article 10, the transaction value cannot be determined under the 
provisions of Article 4.  As an illustration of this, a royalty is paid on the basis of the price in a sale 
in the importing country of a litre of a particular product that was imported by the kilogram and made up into a solution after importation.  If the royalty is based partially on the imported goods 
and partially on other factors which have nothing to do with the imported goods (such as when the 
imported goods are mixed with domestic ingredients and are no longer separately identifiable, or when the royalty cannot be distinguished from special financial arrangements between the buyer 
and the seller), it would be inappropriate to attempt to make an addition for the royalty.  However, 
if the amount of this royalty is based only on the imported goods and can be readily quantified, an addition to the price actually paid or payable can be made. 
11.  Explanation on Article 11 
For the purposes of Article 11, "time of importation" may include the time of entry for customs 
purposes. 
12.  Explanation on Article 13 
Article 13 provides the importer with the right to appeal against a valuation determination made 
by the customs administration for the goods being valued. Appeal may first be to a higher level in the customs administration, but the importer shall have the right in the final instance to appeal to 
the judiciary. 
"Without penalty" means that the importer shall not be subject to a fine or threat of fine merely 
because the importer chose to exercise the right of appeal.  Payment of normal court costs and 
lawyers' fees shall not be considered to be a fine. 
13.  Additional Explanation 
1. In Article 2, paragraph 3 in the Ministerial Decision No. 2095/MOF, dated 
26 September 2011, it should be understood that importer or customs declarant is responsible for 
declaring customs value in accordance with provis ion of the Ministerial Instruction No. 1537/M0F, 
dated 4 June 2012 regarding to customs valuation for imported goods; and be legally responsible for all information filled in the declaration form. 
2. In Article 11, paragraph 3 in the Instruction of Customs Department No. 0266/CD, dated 
4 November 2011 it should be understood that a customs officer may hold information in a 
valuation support database for the purpose of risk management only and the price retrieved from the database should not be applied as the minimum price (reference price) 
14.  Implementation 
All division under the Customs Department, Regional Customs, Customs Border Checkpoints 
across the country, all concerned entities, persons and legal persons operating importations shall 
acknowledge and fully comply with the provisions of this instruction. G/VAL/N/1/LAO/1 
 
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  15.  Effectiveness 
This instruction shall be effective from the date of signing and shall replace the instruction 
No. 2401/CD, dated 29 September 2010. 
Director-General of Customs Department 
Athsaphangthong Siphandone G/VAL/N/1/LAO/1 
 
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  National Assembly              No. 04/NA 
Vientiane Capital, date:  20 December 2011 
CUSTOMS LAW  
(Revised version) 
PART I 
GENERAL PROVISIONS 
Article 1. (Revised) Objectives 
This Law provides principles, policies, rules and measures on export-import, transit and movement 
of goods within the Lao People's Democratic Republic with a view to encouraging investments, protecting legitimate benefits in the fields of social, economic and national security, international integration, ensuring [more effective] revenue collection for the state budget and contributing to 
national social and economic development. 
Article 2. (Revised) Customs Duty 
Customs duty means the monetary obligations that are paid to the State by individuals, legal 
entities and organizations undertaking export an d import, transit and movement of goods through 
customs border checkpoints as specified in the customs tariff nomenclature. 
Article 3. (Revised) Explanation of Terms 
Terms used in this Law shall have the following meanings: 
1. Customs Administration  means the Department of Customs, Regional Customs [Offices], 
Customs Border Checkpoints and other Customs organizations, which are organizations under the Ministry of Finance that are responsible for implementing the Customs Law and 
other laws and regulations in a centrally uniform manner throughout the country. 
2. Customs Authority  means a customs officer duly appointed to implement duties in the 
Customs Administration at each level or any specific tasks. 
3. Customs Duty Declarant  means an individual, legal entity, organization, customs 
clearance broker or authorized person who is  authorized to prepare and submit customs 
declarations and sign the detailed customs declaration forms. 
4. Other obligations mean various taxes and fees as specified in regulations, and the Budget 
Law for which the customs authorities are authorized to collect such taxes and fees.  
5. Regular detailed customs declaration means filling in detailed information on exported 
and imported goods on the forms provided by the Customs Administration.  
6. Electronic detailed customs declaration means the application of information, data and 
technology for declaring information on goods through the customs automated electronic system of the Customs Administration .  
7. Electronic signature means a signature of the customs declarant to certify the accuracy of 
information declared by means of an electr onic system and recognized by the Customs 
Administration.  
8. Specific route is any route for shipping goods determined by Customs Authorities to control 
exportation, importation, transit and movement of goods.  
9. Seizure of goods means withholding the goods temporarily while waiting for the results of 
legal proceedings.  G/VAL/N/1/LAO/1 
 
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  10. Retention of goods means retaining goods temporarily at the premises of the accused 
suspect, and which such goods shall not be purchased, sold, transferred or pawned while waiting for a [determination] of proof or the results of legal proceedings.  
11. Confiscation of goods means the Customs Administration's taking of goods that are 
evidence of customs breaches to be State assets in accordance with court decisions.  
12. Investigation Body of the Customs Authority means the Customs Administration at all 
levels that are assigned duties to investigate proceedings and settlement of customs cases.  
13. Customs border checkpoint means international customs checkpoints, local customs 
checkpoints and traditional customs checkpoints that authorize the entry and exit of passengers, vehicles and goods.  
14. Suspension of Custom Duty means to suspend for a designated period of time the 
customs duty during the exportation-importation of goods, but should not be beyond the 
time identified in the laws and regulations.  
15. Extra cost means the expenses for customs cases proceedings, warehouse, uploading, 
maintenance, transportation and other relevant costs.  
Article 4. (Revised) State Policy on Customs  
The Government has a policy to promote individual s, legal entities and organizations engaged in 
the export and import of goods to be aware of [t he need] to pay obligations to the State with an 
aim for national social and economic development, particularly to expand strongly and continuously health care and education activities and to strengthen the implementation of the duties of Customs Administration by means of laying out policies, regulations, allocation and 
development of human resources, and providing the budget to develop necessary infrastructure, 
vehicles and equipment for the implementation of customs activities.  
Article 5. (New) Customs Principles  
Customs operations shall comply with the following principles:  
1. Ensure uniform and centralized management throughout the country;  
2. Ensure the promotion and growth of production, business operations and investments;  
3. Ensure justice, modernity, transparency, and prompt service and accountability;  
4. Facilitate trade and promote investment;  
5. Collaborate harmoniously between vertical and horizontal lines of management;  
6. Implement various obligations of regional and international agreements, treaties and 
conventions of which Lao PDR is a party to;  
Article 6. (Revised) Goods Subject to  Customs Duty and Other Obligations  
All categories of goods exported from and import ed to Lao PDR are subject to customs duty and 
other obligations according to the rates defined in the customs tariff nomenclature, except for 
cases where customs duty and other obli gations are exempted or suspended.  
Individuals, legal entities and organizations that export and import goods shall pay customs duties 
and other obligations as set out in the laws and regulations .  
Article 7. (Revised) Customs Territory  
The customs territory covers all territory of La o PDR where the scope of functions of customs 
authorities is determined. Customs authorities are allowed to exercise their functions outside the 
customs territory in accordance with agreements or protocols in which the government of Lao PDR 
has signed.  G/VAL/N/1/LAO/1 
 
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  Within the customs territory, individuals, legal en tities and organizations regardless of nationality 
who export, import, transit and transport goods through customs checkpoints shall comply with this Law and other relevant laws and regulations.  
Article 8. (New) Customs Control  
Customs control is an application of procedures, methods, regulations and measures by customs 
administration according to this Law and other relevant laws to control the exportation, importation, transit and movement of goods.  
Article 9. (Revised) International Cooperation  
The government opens and promotes relations and cooperation with foreign countries, regions and 
the world on customs matters by the exchange of  lessons [learned], information, techniques, 
technologies, training and upgrading of staff ca pacity and other [activities], and to implement 
international agreements, treaties or conventions of which Lao PDR is a Party to.  
PART II CUSTOMS DECLARATION REGULATIONS AND PROCEDURES  
Chapter I Classification of Goods and Country of Origin  
Article 10. (Revised) Cl assification of Goods  
All categories of goods that are exported and impo rted shall be declared according to the code of 
each category of goods as specified in the Ha rmonized System Customs Tariff Nomenclature.  
The customs tariff nomenclature of Lao PDR is developed according to the international 
Harmonized System Customs Tariff Nomenclature which may be amended periodically.  
Article 11. (Revised ) Country of Origin  
The country of origin is a country where a produc t is extracted, produced or [changed] through 
production or processing processes, based on spec ified regulations in compliance with regulations 
on the application of the Customs Tariff Nomenclature and [regulations] on the determination of the content of the components or other regulations on trade.  
Country of origin is used to determine the country where goods are produced and [are eligible to] 
receive privileges for tariff reductions with respec tive countries which the government of Lao PDR 
has signed preferential trade agreements.  
Chapter 2 Customs Valuation  
Article 12. (Revised) The Cust oms Value of Exported Goods  
The customs value of exported goods is the actual  value of goods, including transportation costs 
delivered to the customs border checkpoint of export .  
Article 13. (Revised) Customs Value for Import  
Customs value for import shall be the actual value of goods including transportation and/or 
insurance costs at the customs border checkpoint of import in accordance with 1994 WTO's 
General Agreement on Customs and Trade,  pertaining to Customs Valuation.  
The Ministry of Finance shall issue detailed regulati on on the principle of import customs valuation.  G/VAL/N/1/LAO/1 
 
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  Chapter 3 Customs Clearance Brok ers and their Responsibilities  
Article 14. Customs Clearance Brokers  
Customs clearance brokers have the duty to declar e customs duties on behalf of owners of goods 
or transporters. The Ministry of Finance shall issue regulations with respect to standards, 
requirements and the scope of operations of customs clearance brokers.  
Article 15. (New) Responsibilitie s of Customs Clearance Brokers  
Customs clearance brokers have the following obligations:  
1. Transacting business with the Customs Administration for goods declaration procedures; 
completing customs documentation, customs clearance, payment of duty and other obligations; and removal of goods from a warehouse or checkpoint on behalf of the goods owner;  
2. Contacting the Customs Administration to register their electronic declaration system;  
3. Declaring goods correctly to the Customs Administration and submitting supporting 
documents in accordance with customs protocols and procedures;  
4. Signing detailed customs declarations in electron ic format and/or other formats on behalf of 
the goods owner when authorized;  
5. Paying customs duty and other obligations on behalf of the goods owner;  
6. Participating in the inspection of goods with Customs Authorities, for instance, opening 
[containers] and boxes of goods, counting th e quantity of goods, weighing and measuring 
goods;  
7. Representing owners of goods, transporters or other clients in dealing with the Customs 
Authority for any breach of the Customs Law and regulations and other relevant laws and 
regulations;  
8. Being responsible for the costs of transportation, unloading, warehousing and other 
expenses occurring [during] the inspection of goods.  
Chapter 4 Customs Risk Management  
Article 16. (New) Customs Risk Management  
Customs risk management is the application of a Custom Administration mechanism to analyze 
and select information for customs control that aims to ensure the facilitation of imports, exports, transit, movement and inspection of goods by applying risk management principles.  
Article 17. (New) Customs Risk Management Principles  
Customs risk management principles are as follows:  
1. Apply risk management measures effectively throughout the customs territory and in all 
customs activities;  
2. Collect information within the Customs Administration and from other relevant sectors to be 
used for analysis and selection of th e management of risk effectively;  
3. Issue regulations on risk management and develop standards of risk management in parallel 
with implementing customs control and management effectively;  
Chapter 5 Customs Formalities and Clearance  
Article 18. (New) Customs Formalities  
Customs formalities are the formulated provisions to control the export, import, transit and 
movement of goods within a customs territory.  
Article 19. (Revised) Declaration of  Manifest and Conveyance Papers  
When the goods arrive at the Customs border ch eckpoint, the declarant or the transport service 
provider shall implement the following procedures:  G/VAL/N/1/LAO/1 
 
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  1. Submission of manifest or declaration according to prescribed forms by Customs within 
24 hours;  
2. Submission of conveyance papers to the Customs Authorities for control and management 
as described in the Customs Law and regulations.  
3. Prohibition to unload goods from conveyance prior to submission of the manifest, except 
when they are authorized by Customs Authorities or in the case of force majeure.  
Article 20. (Revised) Reporting of Personal Belongings of Passengers  
Personal belongings of passengers travelling through customs checkpoints by car, train, boat and 
airplane shall be under customs control.  Passengers who possess goods in excess of the amount permitted by regulations shall correctly and fully declare these to Customs in a prescribed form.  
Passengers shall comply with the regulations an d other requirements regarding the export and 
import of foreign currencies, Lao Kip, precious ob jects, and archaeological and cultural objects.  
Article 21. (Revised) Declaring Mailed Goods by Post  
Parcel post and mail imported, exported or in tr ansit shall be subject to customs control.  This 
[control] shall be end only if customs formalities are carried out in accordance with customs 
regulations.  
A legal entity running a business as a freight fo rwarder and dispatching parcels and mail shall be 
responsible for customs clearance on behalf of the goods owner as prescribed in Customs Law and 
regulations.  
Article 22. (Revised) Detailed Customs Declaration  
The declarant shall submit a regular detailed cust oms declaration and/or an electronic detailed 
customs declaration with regard to imported-exported or transit goods, as follows:  
1. Fill out the information required in the detailed customs declaration form and sign it;  
2. The detailed customs declaration verified by th e Customs Authorities shall be registered;  
3. Signature in the detailed customs declaration an d/or electronic detailed customs declaration 
has equal value;  
4. The detailed customs declaration that has been approved and registered shall not be subject 
to change except [when] the declarant has th e information and evidence to validate [the 
need] for the Customs Administration to consid er to modify the information before actual 
goods inspection by Customs Authorities;  
5. [If] The detailed customs declaration has been erased, struckout, or stained, it is considered 
invalid.  
Article 23. Customs Decl aration Documentation  
The documents required for detailed customs declaration are as follows:  
1. Detailed customs declaration;  
2. Invoice;  
3. Manifest;  
4. Packaging list (if any);  
5. Certificates of origin (if any); and  
6. Export or import permit (if any).  
Article 24. (Revised) Time and De tailed Customs Declaration Measures  
The declarant shall submit a completed declaration to Customs within 15 working days from the 
date of the Customs Authorities record [for the] goods according to the manifest.  
If the declarant does not know detailed information regarding the goods, he/she is allowed to 
examine actual goods in the warehouse based on th e prescribed time identified in the above first 
paragraph to prepare customs declaration documents.  G/VAL/N/1/LAO/1 
 
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  In case the detailed customs declaration is submitted to the Customs Administration later than the 
prescribed time, the goods shall be under specia l customs control and shall be subject to the 
following procedure:  
1. Shall declare the detailed customs duty on good s within 45 working days and shall be fined 
at a rate of 0.1 per cent of the value of goods;  
2. If he/she fails to submit a detailed declaration within 45 working days, the Customs 
Administration shall announce or issue a notice to the declarant to make a detailed 
declaration within 21 working days; if the declarant submits a declaration within such time 
period, he/she is subject to a fine of 0.5 per cent of the value of goods;  
3. If the extra 21 working days is over, the goods shall be subject to confiscation.  
Customs declaration measures of goods to be used for Government's projects are identified in 
separate regulations.  
Article 25. (Revised) Payment of Cu stoms Duties and Other Obligations  
After the Customs Authorities accept a detailed custom declaration form, the declarant shall pay 
the duties and other obligations in full amount in Lao Kip according to relevant regulations.  
Chapter 6  
Inspection and Release of Goods from the Customs Checkpoint or Customs Warehouse  
Article 26. (Revised) Inspection and Release of Goods from the 
Customs Checkpoint or Warehouse  
After the detailed customs declaration form is approved and registered, the Customs Authorities 
shall inspect goods as a whole or by sampling depe nding on what is appropriate.  Inspection of 
goods shall be carried out in the presence of the declarant at the customs checkpoint and shall be 
done at the warehouse or its surrounding or another location specified by the Customs Administration.  
In case there are disputes arising from the inspec tion of some part of goods, the declarant may 
request the Customs Authorities to re-inspect all goods.  
After completing the inspection of goods, the Customs Authorities shall record the results, 
including the type of goods, quantity, weights,  price, manufacturing country, transportation 
vehicle, date and place of inspection and put a signature, name and family name on the detailed customs declaration form and/or releasing note of goods.  
In case the results of the inspection of goods are different from information declared on the 
detailed and/or electronic customs declaration form, the Customs Authorities shall make a case 
report to initiate a customs case proceeding.  
Article 27. (Revised) Security for Releasing Goods from the  
Customs Checkpoint or Warehouse  
Security for releasing goods from the customs checkpoint or warehouse before the detailed 
customs declaration shall proceed according to the following:  
1. The declarant shall make a request for the deposit of security with the Customs 
Administration;  
2. The security shall be equal to customs duties and other obligations with an additional twenty 
20 per cent in cash or guarantee letter from a financial institution or bank or individual, legal 
entity or organization that has a reliable financial status;  
3. After releasing goods from the warehouse, within 15 working days, a detailed customs 
declaration shall be made.  Money or the guarantee letter shall be returned;  
4. If the declaration is made later than the specified time, the declarant shall be fined 
0.10 per cent of the value of goods;  G/VAL/N/1/LAO/1 
 
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  5. If the declarant fails to comply with the security contract, the violator shall be prosecuted 
based on the laws and regulations.  
Chapter 7 Advance Rulings and Pre-Shipment Clearance  
Article 28. (New) Advance Rulings  
In case the declarant is not sure about identifyin g the customs classification code and country of 
origin of goods needed to prepare for a detailed customs declaration, the declarant is allowed to 
request for advice and to apply for an advance ruling from the Customs Administration by 
following the procedures below:  
1. The documents and/or samples of goods shall be submitted in writing to the Customs 
Administration;  
2. The Customs Administration shall consider [the request] in order to issue an official certified 
document [certificate of approval] within 15 working days from the date [the customs 
authority] receives full documentation;  
3. In case the Customs Administration needs additional information, the declarant shall provide 
relevant information within 15 working days from the date of receipt of a notice from the 
Customs Administration. If it is beyond the deadline, the Customs Administration may not consider the application.  
4. The certificate of approval from the Customs Administration is valid for not more than one 
year as long as the specifications regarding the imported goods do not change. If there is 
strong evidence or information that the goods ha ve changed, the certificate of approval shall 
be cancelled.  
5. When [there is] information or evidence that  a good [has] changed, the declarant must 
request to the Customs Administration to consider and issue a new certificate of approval.  
Article 29. (New) Pre-Arrival Customs Declaration  
To facilitate the import and export of goods, the declarant may declare details of goods before the 
arrival of goods at customs checkpoints and shall apply the following procedures:  
1. The declarant is eligible to make pre-arrival clearance within seven working days prior to the 
arrival of goods at the customs checkpoints and shall prepare sufficient documentation as 
defined in Article 23 of this Law;  
2. The payment of customs duties and other obligat ions shall take place at the time the goods 
arrive at the customs checkpoint as defined in Article 25 of this Law.  
PART III CONTROLLED AND RESTRICTED GOODS  
Article 30. (Revised) Controlled Goods  
Controlled goods are goods under the control of the Customs Administration that are defined in the 
relevant laws and regulations [of the Lao PDR] for reasons of national security, sanitation, 
phytosanitation, environmental protection and others.  
Exportation, importation, transit and movement of controlled goods shall be authorized by the 
Government or concerned State authorities as prescribed by laws and regulations.  
Article 31. (Revised) Prohibited Goods  
Prohibited goods are goods that are defined in relevant laws and regulations, especially weapons, 
narcotics, psychotropic substances and hazardous chemical substances. It is prohibited to export, 
import, transit, move, purchase, sell and be in possession of prohibited goods.  G/VAL/N/1/LAO/1 
 
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  PART IV INTELLECTUAL PROPERTY RIGHTS PROTECTION MEASURES  
Article 32. (New) Protection Measures  
If the owner of intellectual property rights has reliable information that imported, exported or 
transited goods infringe his/her trademarks or copyrights, the owner of the intellectual property 
right is entitled to prepare a request and submit [it] to the Customs Administration to inspect and 
seize such goods temporarily.  
Article 33. (New) Implementati on of Protection Measures  
The Customs Administration shall issue detailed re gulations to implement the protection measures 
as defined in Article 32 of this Law, in which it must be consistent with the Intellectual Property Law and agreements and conventions that Lao PDR is party to.  
PART V MOVEMENT OF GOODS  
Article 34: (Revised) Movement of Goods within the Customs Territory  
Goods that are subject to documentation for movement are goods for which customs duties and 
other obligations have not been paid, duty free goods, goods imported under investment 
promotion policy and goods that are moved within the warehouse regime.  
The declarant wishing to transport goods within the customs territory shall follow special routes 
specified by the Customs Administration; when goods arrive at the destination, they shall be 
declared to Customs Authorities to proceed with entry formalities.  
Article 35. (New) Movement of Goods outside the Customs Territory  
In case goods cannot be moved within the customs territory, the Customs Administration may 
allow the movement of goods by using the territory of another country in accordance with the 
agreement of the transit country; such goods are ex empted from export duties as well as export-
import procedures.  
The transportation of such goods shall be accompanied by the movement customs declaration 
form.  
Article 36. (Revised) Transportation of Goods across International Borders  
The transporter or declarant who transports goods across an international border and through the 
territory of the Lao PDR shall be approved by  the relevant government authorities and the 
Customs Administration as follows:  
1.  The transporter shall provide a security in the form of check or a letter of guaranty issued by 
a bank or financial institution in the amount equal to the customs duties and other 
obligations;  
2.  The transporter of goods shall submit the relevant manifest to the Customs Administration;  3.  The transportation vehicle shall follow a sp ecified route and time frame determined by the 
Customs Administration;  
4.  Goods under international transit shall be under the control of the Customs Authorities and 
they are prohibited to be distributed;  
5.  In case of accidents or force majeure , the closest Customs Authority shall be informed; any 
unloading of goods shall be approved by the Customs Authority;  
 In case goods are damaged by accident and cannot be recovered or [goods that] affect the 
environment, the transporter shall be responsible for it according to the laws and regulations 
of Lao PDR;  
6.  Once goods are transported from Lao PDR territory across the international border, security 
ends and the Customs Authorities shall issue a ce rtificate. Money or the Letter of Guaranty 
shall be returned to the issuer.  G/VAL/N/1/LAO/1 
 
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  PART VI WAREHOUSES AND WAREHOUSE REGIME  
Article 37. (Revised) Warehouses  
The warehouse is a place to temporarily store goods and is located within the customs territory 
and under the control of Customs Authorities while waiting for customs clearance.  
Article 38. (Revised) Warehouse Regime  
A warehouse regime is the warehouses storing goods that are intended to be exported and 
imported within a certain period of time with customs duty suspension and under the control of the 
Customs Administration while waiting for customs clearance.  
There are four types of warehouses that are grouped into the warehouse regime:  1. Bonded warehouse is a place used to store general goods with normal characteristics, 
excluding goods that are classified for ware house types 2, 3 and 4 of this Article;  
2. Temporary warehouse is a place used to store goods destined for duty free shops with a 
guarantee contract that the goods shall be sold to travellers who are going to other countries and shall be sold in accordance with specific regulations.  
3. Industrial warehouse is a place used to store goods intended for temporary export and 
import for assembly, modification, proce ssing or repair and then re-export;  
4. Special warehouse is a place used to store certain types of goods, such as:  
- Live animals;  
- Controlled goods or goods that are under special control;  - Goods that have high risks and are dangerous and that are not appropriate to store in 
other types of warehouse.  
The Ministry of Finance shall be in charge of th e approval of the establishment and development of 
regulations related to the location for the establishment, application, control and time [period] for the storage of goods in each type of warehouse.  
Article 39. (New) Goods that Deteriorate Quickly  
With regard to goods that deteriorate quickly [and where there is] no contact with the owners, the 
Customs Administration may sell them through auction and the money received will offset the 
necessary expenses occurred in the auction, with the remaining money retained subject to further 
legal proceedings.  
Article 40. (Revised) Wareho use Management Procedures  
Customs Authorities may inspect accounts and goods in different types of warehouses at any time 
according to regulations, if necessary.  
In case the number of goods in a warehouse is not consistent with the accounts reported earlier, 
the management of the warehouse shall be responsible according to the laws and regulations.  
When moving goods within the warehouse regime, a moving permit shall be obtained from 
Customs Authorities.  
PART VII TEMPORARY EXPORT AND IMPORT OF GOODS  
Article 41. (Revised) Temp orary Export of Goods  
Temporary exportation of goods out of the country and when bringing goods into the country 
again, if there are some modification, change or adding some equipment [to the goods], [the G/VAL/N/1/LAO/1 
 
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  goods] shall be subject to customs duties and othe r obligations based on the laws and regulations, 
with the cost of the modification, change or adding of some equipment used as the basis for customs calculation.  
Exportation of goods for the purpose of exhibition, experiment, research, analysis and etc. in 
foreign countries are subject to declaration of the detailed customs duty, to insurance for the 
exported [goods] and to follow relevant regulations.  
For controlled goods, it must be approved by relevant sectors.  
Temporary exported goods shall be suspended from customs duties and other obligations.  
Article 42. (New) Temporary Importation  
Temporary importation of goods include:  1. Goods imported for manufacturing, processing, assembling, modifying or repairing;  
2. Vehicles to be used for project survey and design;  
3. Vehicles to be used for tourist visits;  
4. Equipment to be used for project survey and design;  
5. Goods for exhibition;  
6. Goods for study and experiment.  
Goods that are classified under clauses 1 to 6 above are suspended from the application of 
customs duties and other obligations and when it is  re-exported, it is subject to customs duties 
exemption as specified in the regulations.  
Article 43. (Revised) Importation of Ma terials for Manufacturing, Processing, 
Assembling, Modifying or Repairing  
Temporary importation of materials including container and packaging materials for 
manufacturing, processing into finished products or semi-finished products, assembling, modifying, 
repairing, and [the good is] re-exported with authorization by the regulations of relevant sectors, 
[the goods] are subject to customs suspen sion and shall be applied as follows:  
1. Submit an import plan and/or production formula to the Customs Administration;  
2. Shall comply according to a specified time under temporary import regulations, and if failing 
to do so, the Customs Administration shall be informed;  
3. The waste for production, processing, assembling and modifying finished or semi-finished 
products where the quality is not consistent with the requirements for re-exporting, [the waste] is subject to customs duties and other obligations according to regulations.  If the 
waste cannot be further used or it has adverse impact on health or the environment, they 
shall be disposed of according to the regu lations and then reported to the Customs 
Authorities.  
Article 44. (Revised) Import of Vehi cles for Project Survey and Design  
Both domestic and foreign legal entities and organizations wishing to temporarily import vehicles 
for project survey and design purposes according to the agreements made with the Government of 
Lao PDR shall follow the requirements below:  
1. Temporary import of vehicles shall be based on a master plan, with volume of work of the 
project and agreements made with concerned sectors;  
2.  Importers of such vehicles shall present a valid registration from a foreign country;  
3.  A security contract with the Customs Administration shall be established and the timeframe 
for the security contract shall be a maximum of two years or should not be beyond the project completion date. If an extension of th e contract is needed, documents and vehicles 
shall be presented to the Customs Administration for consideration 30 days before the 
contract is terminated.  
4. In case such vehicles cannot be re-exported, documents and vehicles shall be presented to 
the Customs Administration for consideration 30 days before the contract expires.  G/VAL/N/1/LAO/1 
 
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  Article 45.  (Revised) Import of Vehicl es for Tourism and Visits  
Any person wishing to import vehicles into Lao PDR for the purposes of tourism, visiting, or use for 
business purposes shall follow the regulations of the relevant sectors and the following requirements:  
1. He/she shall present details of each vehicle to Customs Authorities to process customs 
formalities;  
2. [Vehicles admitted] shall be vehicles that are already registered in other countries;  
3. Such vehicles shall be re-exported according to a specified time frame and at border 
customs checkpoint identified by Customs Author ities; if they are over the deadline, they 
shall be fined based on the regulations;  
4. In case an extension for the permit is needed, documents and vehicles shall be presented to 
the Customs Administration for consideration tw o days before the deadline of such permit.  
Article 46. (Revised) Import of Materials for Project Survey and Design  
Both domestic and foreign legal entities and organizations wishing to temporarily import materials 
and equipment, such as machinery and tools fo r surveying, designing and operating a project 
according to an agreement made with the Government of Lao PDR, shall follow the requirements below:  
1. The [temporary] import of materials and equipm ent shall be based on a master plan, with 
the volume of work of the project [based on] contracts made with concerned sectors;  
2. The imports of such materials and equipment shal l have a usage life over the entire period 
of the project and can be re-exported in the same quantity.  
3. Such imports shall be suspended from customs duties and other obligations and [shall be] 
under the temporary import regulation.  
4. A security contract shall be prepared for the importation of such materials and equipment 
with the Customs Administration with the time period of not more than one year.  If an 
extension of the contract is needed, docu ments shall be presented to the Customs 
Administration for consideration 30 days before the contract is terminated.  
5. In case such materials and equipment cannot be re-exported, documents shall be presented 
to the Customs Administration for consideration 30 days before the contract terminates.  
Article 47. (Revised) Import  of Goods for Exhibition  
The temporary import of goods for exhibition shall follow the following procedures:  
1. [Applicants ] shall obtain documents or security certified by relevant sectors;  
2. Make a security contract with the customs administration;  
3. When the exhibition ends, the ex hibition [goods] shall be re-exported in the same quantity 
and condition.  
Article 48. (New) Temporary Import of Materials for Education and Experiment  
The temporary import of materials for education and experiment that are not of a commercial 
nature shall have certified documents from the relevant government offices and be re-exported in 
the same quantity.  
Article 49. (New) Temporary Import Control Measures  
Anyone who makes a security contract with the Customs Administration shall strictly comply with 
the specified time and requirements.  
Temporarily imported goods are prohibited from ownership transfer, pawning, exchange, [being] 
bought or sold or misused. If [these conditions are] violated, measures shall be taken according to 
law and regulations.  
In case it is necessary to use imported goods domestically, they shall be authorized by the 
Customs Administration.  G/VAL/N/1/LAO/1 
 
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  PART VIII EXEMPTION AND SUSPENSION OF CUSTOMS DUTIES AND OTHER 
OBLIGATIONS  
Chapter 1 Exemption and Suspension of Cu stoms Duties and Other Obligations for 
Diplomatic Missions and International Organizations  
Article 50. (Revised) Exemptio n of Customs Duties and Other Obligations for Diplomatic 
Missions  
The import of goods and vehicles for diplomatic mi ssions in compliance with the Vienna Convention 
on Diplomatic Relations of 18 April 1961, and appr oved by the Ministry of Foreign Affairs of Lao 
PDR, are exempted and suspended from customs duties and other obligations.  
Article 51. (New) Suspension of Customs Duti es and Other Obligations for International 
Organizations  
The import of goods and vehicles by international organizations or international nongovernmental 
organizations or project-based international expert (s) that have been certified or approved by 
Ministry of Foreign Affairs of Lao PDR are exempt ed and suspended from customs duties and other 
obligations.  
Article 52. (New) Completion of Exemption and Suspension of Customs Duties and Other 
Obligations  
For goods and vehicles imported for the use of diplomats, international organizations and 
international non-governmental organizations and project-based international experts for which customs duties and other obligations have been ex empted and suspended, after completion of the 
mission in Lao PDR, these goods and vehicles are to be re-exported; however, if these goods and 
vehicles are to be used domestically, they shall be subject to customs duties and other obligations 
pursuant to regulations.  
Chapter 2 General Exemption of Cust oms Duties and Other Obligations  
Article 53. (Revised) General Exemption fr om Customs Duties and Other Obligations  
Imported goods that are exempted from customs duties and other obligations are:  1. Personal belongings of passengers;  
2. Certain kinds of items when changing a residency (moving house);  
3. Gifts of a delegation from overseas official visits;  
4. Goods obtained from grant assistance sources and government borrowing;  
5. Essential items used for education, health, scientific study, samples and religious items;  
6. Special items used for national defence and public security.  
The government shall specify a detailed list of goods that are exempted from customs duties; if 
necessary, the government is entitled to propose to the Standing Committee of the National 
Assembly to consider and identify a list of goods for further exemption of customs duties.  
Article 54. (Revised) Exemption of Cu stoms Duties for Personal Belongings  
Passengers traveling to the Lao PDR with belongin gs will receive incentive exemptions for customs 
duties and other obligations as follows:  
1. Precious objects and foreign currencies with a value not more than as specified by the Bank 
of Lao PDR;  
2. All types of alcohol not exceeding 2 litres, all types of beer not exceeding 5 litres, all types 
of wine not exceeding 3 litres;  
3. All types of cigarettes not exceeding 1 carton (200 cigarettes), cigars not exceeding 
50 cigars or tobacco leaves not exceeding 250 grams;  
4. Perfume and fragrant oils not exceeding one item each.  G/VAL/N/1/LAO/1 
 
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  Article 55. (Revised) Exemption of Cu stoms Duties for Certain Types of  
Items While Moving a Residency  
Students, civil servants and diplomats completing their mission abroad and foreigners intending to 
have permanent residency who import items and presents of [Lao] delegations returning from an 
overseas trip in addition to motorized vehicl es are exempted from customs duties and other 
obligations as follows:  
1. Certain items and in certain quantities that are not of a commercial nature;  
2. Necessary items for households;  
3. Goods received from inheritance.  
Article 56. (Revised) Exemption of Customs Duties for Goods Obtained from Grant Aid or 
Loans by the Government  
The import of goods received as grants or loans by the government from foreign countries and 
humanitarian assistance and disaster relief items shall be exempted from customs duties and other obligations based on the decision of the Government.  
Article 57. (Revised) Exemption of Custom s Duties for Essential Items Used for 
Education, Health, Scientific St udy, Samples and Religious Items  
The importation of some essential, non-commercial goods will be exempted from customs duties 
and other obligations as follows:  
1. Essential items used for education, health, scientific study and samples items shall be 
certified by relevant sectors;  
2. Religious items, such as Buddha Images, worship items, essential materials-equipments and 
items for religious ceremony shall require a Certified Letter from the Lao Front for National 
Construction in collaboration with the Information, Culture and Tourism Sector.  
Article 58. (Revised) Exemption of Customs Duties for Professional Items Used for 
National Defence and Public Security  
The importation of goods, weapons and professional  vehicles to be used in national defence and 
public security are exempted from cu stoms duties and other obligations.  
Article 59. (New) General Expo rt Customs Duty Exemption  
Exportation of agricultural products derived from production, plantation and breeding, and 
industrial products that have been manufactured or processed, and handicraft products, are exempted from export customs duties, except fo r some items of goods that require an export 
duty.  
PART IX SUSPENSION, EXEMPTION OR REDUCTION OF CUSTOMS DUTIES AND OTHER 
OBLIGATIONS FOR INVESTMENT  
Article 60. (New) Exportation-Importat ion under Investment Promotion Policy  
In order to promote investment and support production according to Government policy, the 
exportation-importation of goods are subject to exemption or reduction of customs duties and 
other obligations based on the Law on Investment Promotion.  
Article 61. (Revised) Exportation-Importat ion under the Policy of Special Economic 
Zones and Specific Economic Zones  
The export and import of goods into and out of  special economic zones and specific economic 
zones are exempted, suspended or reduced from customs duties and other obligations according 
to relevant and specific regulations.  G/VAL/N/1/LAO/1 
 
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  Article 62. (Revised) Duty Free Shops  
The Ministry of Finance shall authorize the establis hment of duty free shops to distribute goods to 
outbound travellers. Those goods are suspended from customs duties and other obligations according to regulations.  
Article 63. (New) Management of the Utilizat ion of Materials, Equipment or Vehicles  
Goods imported or exported under exemption, su spension or reduction regulations for customs 
duties and other obligations shall be under the control of the Customs Administration.  
Goods from a special economic zone and specific economic zone intended for distribution or 
consumption in the territory of Lao PDR shall pay customs duties and other obligations according to regulations.  
Vehicles or materials/equipment authorized for import under the investment promotion policy shall 
be used according to their objectives and are prohib ited to be distributed and sold in general. If a 
violation occurs, customs measures shall be taken according to the laws and regulations.  
PART X MANAGEMENT OF DOCUMENTS AND APPEALS  
Chapter 1 Management of Document, Post Clearance Audit by Customs Administration  
Article 64. (Revised) Docume nt Management Procedures  
Business operators carrying out an import-export or transit business shall maintain customs 
documents as follows:  
1. Accounting data, detailed customs declaration as well as other supporting documents and 
information shall be kept for a period of three years;  
2. When Customs Authorities audit business operators or their representatives, [they] shall 
provide accounting data and records, document files and other information on export, import 
and transit [to the Customs Authorities].  
Article 65. (Revised) Duration of Time for Post Clearance Audit by the Customs 
Administration  
Detailed customs declaration forms shall be su bject to post clearance audit by the Customs 
Administration within a period of three years from the date the detailed customs declaration 
document has been registered or the date on th at goods were released from a customs warehouse 
or customs checkpoint.  
Article 66. (New) Principles for Conducting Post Clearance Audit  
Principles for conducting post clearance audit on  the export, import and transit of goods by the 
Customs Authorities shall be implemented as follows:  
1. Re-inspect all information related to customs clearance including goods in the stock of 
business operators;  
2. Inspect reference documents on the export and import of goods such as the customs 
declaration value, country of origin, coding, payment information, financial and accounting records and books and other information of business operators;  
3. Keep or retain on a temporary basis all or part of evidence from business operators while 
the inspection or investigation is being carried out;  
4. Shall report audit results to business operators;  
Relevant sectors shall cooperate to provide information on business operators on the request of 
the Customs Authorities.  G/VAL/N/1/LAO/1 
 
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  Article 67. (New) Audit Procedures  
Audit procedures of Customs Authorities shall be implemented according to the following steps:  
1. Collect and analyze information on the detailed customs declaration forms;  
2. Send a written notice to a business operator in advance to prepare information and evidence 
for audit;  
3. Visit business premises to conduct the audit activities according to regulations;  
4. Conclude the audit results and implement remedies;  
5. Inform the results of the post clearance audit to the business operators.  
The Ministry of Finance shall issue detailed regulations related to post clearance audit.  
Chapter 2 Appeal and Settlement  
Article 68. (New) Appeal  
Declarants have the right to appeal when finding out that they are not treated fairly based on the 
agreements or decisions made by the Customs Administration on custom declaration valuation, the classification of goods and the country of origin of goods.  
The appeal of the declarant shall be implemented as follows:  
1. A declarant shall submit an appeal with suppo rting documents and evidence to the Appeal 
Settlement Committee as identified in Article 69 of this Law;  
2. The time frame for submitting an appeal is 30 days from the date the contested agreement 
or decision was made.  
Article 69. (New) Appeal Settlement Committee  
An Appeal Settlement Committee shall be appointed by Minister of Finance, consisting of two 
levels, as follows:  
1. The Regional Appeal Settlement Committee, with membership consisting of the Director of 
Regional Customs as the chairman, representatives from Provincial/Vientiane Capital Finance 
Department, relevant sectors and customs experts from where the Regional Customs is 
located;  
2. The Central Appeal Settlement Committee, with membership consisting of the Director 
General of the Customs Department as the chairman, representatives from other 
Departments under the Ministry of Finance, other concerned ministries and customs experts.  
Article 70. (New) Procedures for Settling Appeals  
Procedures for settling appeals shall be implemented as follows:  
1. After receiving an appeal, within 30 working days, the Regional Appeal Settlement 
Committee shall finalize the settlement of the appeal and notify the decisions to the applicant;  
2. If the applicant disagrees with the decision  made by the Regional Appeal Settlement 
Committee, the applicant may submit his/her appeal to the Central Appeal Settlement Committee within 15 days from the da te of receiving such decision;  
3. In case there is an objection to the decision of the Central Appeal Settlement Committee, 
the applicant has the right to further submit the appeal to the People's Court within 30 days from the date of receiving such decision.  The People's Court decision is effectively enforceable.  G/VAL/N/1/LAO/1 
 
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  PART XI USE OF BOATS FOR TRANSPORTING PASSENGERS OR GOODS ALONG BORDER 
RIVERS  
Article 71. Registration of Boats along Border Rivers  
Any boat whose owner resides in Lao PDR that transports passengers or goods along border rivers 
shall be formally registered at the customs checkpoint where the boat owner resides.  
Article 72. (Revised) Transportati on of Goods along Border Rivers  
Before loading or unloading goods from a boat, the transporting boat for goods along border rivers 
shall stop/park at the port where the customs checkpoint is located, except for the case of 
emergency. In such case, the owner of the boat  shall present the boat registration paper and 
manifest of the goods to the Customs Authorities for examination.  During navigation or after arriving at the port or if there is inspection of the boat on the navigating route, the owner of the 
boat shall present the boat registration pape r and manifest of the goods to the Customs 
Authorities for examination regardless of whether su ch boat is transporting goods and passengers.  
If there is a sale [and] purchase, transfer or change to the features of the boat or the boat has 
ceased to navigate, the owner of the boat must notify the Customs Authorities and the relevant 
organizations where the boat is registered with in twenty days from the date of sale [and] 
purchase, transfer or change to the features of the boat or the boat has ceased to navigate.  
Boat navigation on the Mekong shall be applie d according to the Agreement of Greater Mekong 
Sub-region Countries.  
PART XII  
ORGANIZATION AND ACTIVITIES OF CUSTOMS ADMINISTRATION  
Chapter 1 Organization  
Article 73. (Revised) Location and Role  
The Customs Administration is an organization under the Ministry of Finance that has the 
responsibility for managing customs operations based on a vertical line of command from central 
to local levels; acts as the advisory body to the Minister of Finance in managing customs operations at the macro level; and, carries out internal customs inspections and audits, 
investigations and implementation of the Customs Law and other concerned laws and regulations 
in order to implement its assigned duties effectively.  
Article 74. (Revised) Orga nizational Structure of the Customs Administration  
The organizational structure of the Customs Administration is as follows:  
- Customs Department;  
- Regional Customs;  - Customs border checkpoints consisting of international customs border checkpoints , local 
customs checkpoints and traditional customs checkpoints.  
Article 75. (Revised) Duties and Rights of the Customs Administration  
Customs Administration at each level has the following rights and duties:  
A.  Customs Department  
1. Act as an advisory body to the Ministry of Finance regarding customs policy, laws and 
regulations, strategic plans, and customs development plans;  
2. Revise laws and regulations, and issue detailed implementation instructions;  
3. Implement and disseminate laws, orders, and various policies relating to customs;  G/VAL/N/1/LAO/1 
 
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  4. Consider and propose the establishment of a wa rehouse regime to the Ministry of Finance 
for consideration;  
5. Manage, supervise, monitor and control the orga nization, profession and activities of the 
Customs Administration at each level nationwide;  
6. Collect and provide export and import data about customs activities;  
7. Develop plans for capacity building, traini ng, allocation, appointment, dismissal and 
reassignment of personnel; implement promotion policy regarding customs personnel based 
on the laws and regulations.  
8. Coordinate and cooperate with sectors at the central level and local administrations with 
regard to customs activities;  
9. Conduct post clearance audit, inspection and anti-smuggling activities, proceed and settle 
customs related cases;  
10. Consider, study and address complaints of the declarant based on its scope of responsibility;  
11. Investigate customs cases and file customs cases to People's Prosecutor to litigate cases in 
court;  
12. Coordinate and cooperate with other countries and fulfil commitments under regional and 
international agreements, treaties and conventi ons for customs activities that Government 
of Lao PDR is a Party to;  
13. Summarize and report the outcomes of customs activities to Ministry of Finance regularly;  
14. Implement other rights and duties as defined in the laws and regulations.  
B.  Regional Customs:  
1. Act as an advisory body to the Customs Department to strictly implement strategy, policy 
and customs management mechanism within its mandates according to the Customs Law and regulations and other relevant laws and regulations;  
2. Disseminate policies, laws and regulations regarding customs activities to individuals, legal 
entities and organizations in the society so th at they can be informed and be aware of the 
compliance of the laws and regulations;  
3. Supervise, manage, inspect and control the implementation of customs activities, the 
professionalism and performance of Customs Authorities within the region and border customs checkpoints under their jurisdiction;  
4. Develop a plan for revenue collection from customs duties and other obligations for the fiscal 
year within their jurisdiction to [report] to the Customs Department;  
5. Consider and settle complaints of the declarant under their jurisdiction;  
6. Conduct post clearance audits, inspections and anti-smuggling activities, and conduct 
customs cases proceedings;  
7. Investigate customs cases and submit case files to the People's Prosecutor to take cases to 
court;  
8. Coordinate with local administrations and other government offices with regard to customs 
activities within their region;  
9. Develop plans for capacity building, training, allocation, appointment, dismissal, 
reassignment, and rotation of customs personnel under its jurisdiction to the Department of 
Customs to consider according to regulations;  
10. Supervise and evaluate the customs declaration ac tivities of individuals, legal entities and 
organizations in accordance with the Customs Law and regulations in order to reward 
traders with good records of customs compliance as appropriate;  
11. Implement international coordination and liaison with regard to customs activities as 
assigned by the Customs Department;  
12.
 Summarize and report the outcomes of customs activities to the Customs Department and 
the Vientiane Capital/Provincial  Administrations regularly;  
13. Implement other rights and duties as defined in the laws and regulations.  
C.  Border Customs Checkpoint:  
1. Implement plans, policies and the Customs Law and regulations within their jurisdiction 
strictly;  
2. Collect customs duties and other obligations accurately, fully in accordance with the budget 
plan on a timely basis;  
3. Manage and use equipment and tools in customs activities effectively;  
4. Serve, manage, monitor, inspect and facilitate the export, import and transit of goods 
through checkpoints quickly and accurately as defined in the laws and regulations;  G/VAL/N/1/LAO/1 
 
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  5. Inspect and suppress any violations of customs laws and regulations and other concerned 
regulations within their checkpoints and prosecute violators;  
6. Coordinate with other government offices within the checkpoint while performing their 
duties;  
7. Summarize and report customs activities to Regional Customs and Municipality/District 
Administration regularly;  
8. Implement other rights and duties as assigned by Regional Customs.  
Article 76. (Revised) Personnel Structure  
The personnel structure of the Customs Administration is as follows:  1. Director General, Deputy Director Generals  
2. Director of Divisions, Deputy Directors of Di visions; Head and Deputy Head of Regional 
Customs;  
3. Heads and Deputy Heads of Units within the Di visions; Head and Deputy Heads of Units of 
Regional Customs, Head and Deputy Heads of International Customs Checkpoints;  
4. Head, Deputy Heads of Units of International Customs Checkpoints, Head and Deputy Heads 
of Local Customs Checkpoint and Traditional Customs Checkpoints;  
5. Customs Staff and Authorities;  
6. Some supporting staff.  
The appointment or removal of personnel at each level must be in accordance with relevant law.  
Article 77. (Revised) Requirements of the Customs Authority  
Customs Officers and Authorities have the following requirements:  
1. Be a Lao citizen and must be over 18 years of age;  
2. Have good attributes, ethics/morale and loyalty;  
3. Have an educational certificate, and obtain knowledge, competency, financial and customs 
duties experience and relevant profession background, know some foreign languages;  
4. No disciplinary measures or no intentional financial wrongdoing;  
5. Be healthy.  
Article 78. (Revised) Maintaining Confidentiality  
Customs Officers and Authorities shall strictly maintain confidentiality.  
Chapter 2 Rights and Duties of Customs Authorities  
Article 79. (Revised) Rights of Customs Authorities  
Customs Authorities have the following rights:  
1. To conduct investigations as defined in this Law and the Law on Criminal Procedure;  
2. To stop and seize goods and retain evidence that are related to custom offenses as defined 
in the Customs Law and the Law on Criminal Procedure;  
3. To inspect the premises and other locations, vehicles and individuals as defined in the 
Customs Law and the Law on Criminal Procedure and other relevant laws;  
4. To enter business premises and warehouses to inspect goods and relevant documents on 
export and import transactions as defined in the Customs Law and regulations;  
5. To use weapons, technical equipment and tools in performing their duties;  
6. To collaborate in seeking cooperation and requests for assistance if needed from local 
administrations at all levels, national defence and public security forces, the general public 
and other relevant sectors;  
7. To implement rights as defined in the laws and regulations and as per assignment.  G/VAL/N/1/LAO/1 
 
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  Article 80. (Revised) Duties of the Customs Authorities  
Customs Authorities have the following duties:  1. To propagate, disseminate and give advice to the society, particularly individuals, legal 
entities and organizations that are running export-import of goods;  
2. To strictly implement the Customs Law and regulations and other relevant laws;  
3. Provide quick and fair services;  
4. To accurately and fully collect customs duties and other obligations on a timely basis;  
5. To implement measures to prevent and suppress ac tivities relating to all kinds of smuggling 
and illegal trade according to the laws and regulations;  
6. To maintain confidentiality of State and official secrets;  
7. To summarize and report the outcomes of their performance to higher authorities regularly;  
8. To perform other duties as defined in laws and regulations.  
Article 81. Operations within the [Customs] Territory  
The customs operational territory is the control area of the Customs Authorities that extends 
30 kilometres inland from the border into the customs territory.  If the customs office is 
established outside the operational territory, the operations shall cover ten kilometres around the customs office.  
In order to facilitate the prevention and suppressi on of smuggling, illegal trade and violation of 
customs law and regulations, the Ministry of Fina nce has the right to issue regulations extending 
the customs operational territory from 30 kilometres to 50 kilometres and from ten kilometres to 20 kilometres around customs offices at specified locations and for specified periods of time.  
Article 82. Operations Outside the Operational Territory  
In the case of hot pursuit of goods that are sm uggled [and] evading customs with firm evidence, 
Customs Authorities have the right to perform their duties throughout the customs territory as 
defined in Articles 7 and 81 of this Law.  
Article 83. (Revised) Uniform,  Symbol, Sign, Badge and Seal  
The Customs Authority has its own seal, symbol and customs officers have a uniform, official 
badge and signs, including insignia of rank , baldric, and other signs of authority.  
Customs Administration has an official sign and seal.  The uniform, official badge, signs, marks and seals are specifically identified.  
PART XIII PROHIBITIONS  
Article 84. (New) Prohibitions for Customs Authorities  
It is strongly prohibited for customs authorities to do the following behaviours:  1. Retard, falsify documents, or be irresponsible for the assigned tasks;  
2. Abuse power, [use] violence, threaten or take bribes that cause substantial damage to the 
interests of the State, collectives or individuals and organizations;  
3. Guard or collude with business operators to breach laws and regulations;  
4. Falsify the customs declaration form, money receipt or other documents;  
5. Use the money from customs duties and other obligations for personal enrichment;  
6. Use, cause damage and losses, or take evidence from customs cases;  
7. Other actions that violate the laws and regulations related to customs.  
Article 85. Prohibition for Declarants  
It is strongly prohibited for declaran ts to do the following behaviour:  G/VAL/N/1/LAO/1 
 
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  1. Destroy data and evidence, falsify documents, mis-declare the information, [inappropriately] 
avoid paying customs duties;  
2. Offer bribes and obstruct the performance of the customs authorities;  
3. Humiliate, threaten and use violence against customs authorities;  
4. Collude to conceal and support actions related to payment of obligations by the business 
operators;  
5. Do other behaviour that violates customs laws and regulations.  
PART XIV OFFENSES AND CUSTOMS CASE PROCEEDINGS  
Chapter 1 Customs Offense  
Article 86. (New) Customs Offences  
Customs offenses are violations of the Customs Law and regulations with respect to the export-
import, transit and movement [of goods] and all kinds of smuggling activities.  
Article 87. (Revised) Types of Customs Offenses  
- Customs offenses are classified into two types: minor offenses and serious offenses. Minor 
offenses have three degrees: Minor offenses at the first degree;  
- Minor offenses at the second degree;  - Minor offenses at the third degree.  
- Serious offenses have two degrees:  
- Serious offenses at the first degree;  - Serious offenses at the second degree.  
Article 88. (Revised) Minor O ffences at the First Degree  
Minor offense at the first degree is as follows:  
1. Incorrectly and incompletely declaring detailed information that did not cause a significant 
impact on customs duties and other obligations;  
2. Hiding or refusing to provide necessary documents to Customs Authorities as defined in 
Article 64 of this Law;  
3. Disturbing or creating difficulties to Customs Authorities to implement their duties;  
4. Goods are not imported into and/or exported from Lao PDR through the checkpoint as 
specified in the licence;  
5. Using vehicles to commit customs offenses;  
6. Other offenses, if they are not included in other types of customs offenses.  
Anyone who commits a minor offence at the first degree shall be fined as follows:  
- [For a] value of goods lower than 5,000,000 Kip, they shall be educated and warned;  
- [For a] value of goods from 5,000,001 kip to 10,000,000 Kip, they shall be fined 5 per cent 
of the value.  
- [For a] value of goods [above] 10,000,001 Kip, they shall be fined 10 per cent of the value.  
Article 89. (Revised) Minor Offenses at the Second Degree  
Minor offenses at the second degree are as follows:  
1. Declaring incorrect information that affects customs duties and other obligations such as: 
tariff classification, country of origin, tariff, tax rates, declared customs values, and other information;  
2. Declaring the incorrect number of boxes of goods or combining many units or many types of 
goods into one unit or one type, and thereafter submitting to the Customs Authorities, thereby intentionally evading the customs duties and other obligations;  
3. Declaring the incorrect number of boxes of goods that are under customs duty and other 
obligations [that are] suspended, exempted or reduced;  
4. The export-import of goods without permission from relevant sectors;  G/VAL/N/1/LAO/1 
 
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  5. Decreasing or increasing the number of good s and not declaring the number of goods in a 
warehouse regime;  
6. Violating regulations on export, import , movement and transit of goods;  
7. Using vehicles or goods that are under temporary customs duty and other obligations [that 
are] suspended, exempted and reduced outside their purposes.  
Any person who has committed minor offences at the second degree shall fully pay customs duties 
and other obligations as defined in the laws and regu lations.  In these cases, they are also subject 
to a fine of 30 per cent of the value of goods.  
If the offense occurs a second time, the violator shall pay customs duties and other obligations in 
full amount and also a fine of 50 per cent of the value of goods.  
The seized goods, materials and objects used for concealing and vehicles used for committing the 
offence, that are not controlled by the State sh all be returned to the owner after the case is 
solved.  
Article 90. (Revised) Minor Offense at the Third Degree  
Minor offences at the third degree are as follows:  
1. Minor offenses at the second degree committed for the third time;  
2. Exporting or importing of non-controlled and non-prohibited goods out of or into the Lao 
PDR without making detailed customs declaration;  
3. Concealing goods through the use of vehicles or materials in order to intentionally avoid 
customs duties;  
4. Storing or possessing non-controlled or non-prohibited goods over the needs of household 
consumption without holding detailed customs declaration documents according to the laws 
and regulations.  
Any person who has committed a minor offence at the third degree will be considered as 
intentionally avoiding customs and shall pay full customs duties and other obligations and a fine at 
70 per cent of the value of the smuggled goods.  
If an offense at the third degree was committed for the second time, customs duties and other 
obligations shall be paid in full amount according to the laws and regulations together with a fine 
at 100 per cent of the value of the goods.  
The seized goods, materials and objects used for concealing, and vehicles used for committing the 
offence, that are not controlled by the State sh all be returned to the owner after the case is 
solved.  
Article 91. (Revised) Serious Offense at the First Degree  
A serious offense at the first degree is the act of  exporting-importing or moving of controlled 
goods without holding a detailed customs declaration or without an authorization from relevant 
sectors or if a minor offense at the third degree was committed on a repeated basis.  
Any person committing a serious offense at the firs t degree shall pay a fine at 30 per cent of the 
value of goods. The seized goods shall belong to the State.  
Article 92. (Revised) Serious Offense at the Second Degree  
A serious offense at the second degree is a serious offense at the first degree that occurs for the 
second time, and the violation of intellectual property rights and falsification of customs 
documents.  
Any person committing a serious offense at the seco nd degree shall pay a fine of 50 per cent of 
the value of goods.  The seized goods shall belong to the State.  G/VAL/N/1/LAO/1 
 
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  A serious offense at the second degree is a crim inal offense, in which the violators shall be 
prosecuted based on the Law on Criminal Procedure and other relevant laws.  
Article 93. Offense Related to Prohibited Goods  
When Customs Authorities discover illegal goods, such as weapons, opium, heroin, amphetamine 
or narcotics and other prohibited items, the Customs Authorities shall document the seizure of 
these items and send the evidence with the suspect to the People's Prosecutor for prosecution as defined in the laws and regulations.  
Article 94. Possessing Goods and Vehicles  
Any person who possesses illegal goods or whose vehicles containing such goods shall be 
responsible for such goods and vehicles.  
Drivers of all kinds of vehicles will be responsi ble for customs and criminal activity only if the 
violation of the Customs Law arises from their own actions.  
Article 95. (Revised) Civil and Criminal Responsibility  
The owner of goods shall be responsible for any civi l offense on behalf of a person who is assigned 
by the owner to carry out the customs declar ation, payment of customs duties and other 
obligations that are not according to the laws and regulations, and shall be responsible for the seized goods.  
The guarantor shall be responsible for the payment of customs duties and other obligations 
according to the laws and regulations that are under the responsibility of the person being guaranteed by the guarantor.  
The colluders for a customs offense shall be prosecuted based on Law on Criminal Procedure and 
the measures of this Law shall be taken.  
Chapter 2 Customs Case Proceedings  
Article 96. (Revised) Making a Report Regarding Seized Goods  
When a customs offense is found, the Customs Authorities have the right to seize goods and 
vehicles that are used to commit the offense as well as related documents as evidence for legal proceedings.  
A written report regarding the seizure of goods sh all be made immediately by at least two customs 
officers.  
The report of the seizure of goods shall be prepared in the presence of the suspect and the suspect 
shall be asked to read the report.  In case the suspect cannot read the report, this shall be 
assigned to a third party to read out loud, then the suspect shall sign it or put his/her finger print 
on the report.  In case the suspect refuses to sign or to put his/her fingerprint on it, a remark to that effect shall be written on the report.  The report shall be made in three originals, one to be 
used for the case file, another to be given to the suspect and the other to be kept with the 
Customs Administration.  
In case the suspect is not found, after the completion of the report, Customs Authorities shall 
make a notice and post it in front of customs offices or on various media within 48 hours.  The 
notice shall require the owner of the goods to contact the Customs Administration within 21 days from the date of notification.  If the owner does not contact the Customs Administration by the deadline, the goods will belong to the State; if they are controlled goods or prohibited goods they 
shall be subject to court proceedings based on the laws and regulations.  G/VAL/N/1/LAO/1 
 
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  Article 97. (Revised) Statement Hearing  
After the completion of the report on the seizur e of goods, the Customs Authorities shall take 
statements from the suspect and then make a statement report according to the following 
procedures:  
1.  Taking a statement from the suspect shall be done immediately at the time of seizing the 
goods.  In case the statement cannot be obtained immediately, a report shall be made with reasons for this;  
2.  Before taking statements, the Customs Authorities shall notify the suspect of the violations 
and also explain the rights and obligations of an accused person; when taking a statement, there shall be at least two customs officers present;  
3.  Taking of the statements shall be conducted in a place determined by the Customs 
Administration;  
4. When the taking of a statement is completed,  the person who is giving the statement shall 
read the contents of the report; if that person cannot read, there shall be third person who 
reads it aloud or the report taker shall read it aloud and then the person who is giving a 
statement shall sign it or put his/her fingerpr int on it.  If the person giving a statement 
intends to modify by adding or reducing cert ain information, there shall be a signature on 
the changes and he/she shall put a fingerprint in front of the corrected line;  
5.  In case the person who is giving a statement declines to sign or put a fingerprint [on the 
report], the Customs Authorities who are conducting an investigation shall make a remark [to this effect] at the end of the report;  
6.  While taking a statement, the suspect or persons who are involved in the case and officials 
who take the statement are prohibited from using violence, force, threats or other illegal measures;  
7.  The report of a statement shall be made in three originals; one original is used in the case 
file, another is given to the suspect and the other is kept with the Customs Authority.  
Article 98. (Revised) Preservation of Evidence  
Goods and means of transportation that are seized for evidence shall be kept by the Customs 
Authorities.  It is prohibited to use, cause damage to, lose, interchange or steal the evidence. The offender shall be responsible in accordance with applicable laws.  
With respect to rapidly deteriorating goods or goods that are not appropriate for storage, the 
Customs Authorities shall conduct auctions according to the laws and regulations. The sale 
proceeds of such goods shall be kept by Cu stoms Authorities until the termination of the 
prosecution.  
Article 99. (Revised) Mutual Consent  
Customs Authorities may settle customs cases based on the consent of the offender and applicable 
laws and regulations.  
From the date of signing the report, the offender  shall make a consent settlement regarding a case 
with the Customs administration within 7 working days.  If he/she fails to do so, Customs Authorities shall post a notice at the Customs Office or in the media requiring the offender to make contact within 21 days from the date of announcemen t.  If it is beyond the deadline, such goods 
will belong to the State; if they are controlled or  prohibited goods, they shall be subject to court 
proceedings based on the laws and regulations.  
In case the offender consents with the contents of the report, the Customs Authorities shall enter 
into a consent report requiring the offender to pay customs duties and other obligations with 
penalties immediately.  
If the payment cannot be made immediately, it shall be paid not later than 15 days from the date 
of making a consent report. After the payment is completed, the non-controlled and non-
prohibited goods with vehicles and materials used in connection with the offense shall be returned to the owner.  G/VAL/N/1/LAO/1 
 
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  Article 100. (New) Inspection  of Vehicles and Persons  
The inspection of vehicles means conducting insp ections of all kinds of vehicles, boats, ferries, 
ships, airplanes, trains or other means of transportation when there is strong evidence or indications of concealing smuggled goods. Inspections can be made at any time and shall be made 
in the presence of the owner of the me ans of transportation or drivers.  
The inspection of a person shall be made in appr opriate locations and shall be done by [a customs 
officer of] the same sex as the person being inspected.  
Article 101. (New) Inspection of Premises  
The inspection of premises shall be implemented according to the following rules:  1. Shall request for an authorized order for inspection in writing from the People's Prosecutor 
or the People's Court, except in the case Cu stoms Authorities are chasing smugglers at close 
distance or there is a face-to-face offense that is urgent.  These inspections shall be 
reported to the People's Prosecutor or People's Court within 48 hours after the inspection is completed;  
2. Prior to and after inspection, the Customs Authorities and persons involved shall be honest 
with the owners of the premises that are being inspected;  
3. Shall be done in the presence of owners of the premises, at least two witnesses and 
representative of local administration. In the case of inspecting companies, offices, and 
organizations, inspections shall be done in th e presence of representatives of the premises 
or concerned authorities;  
4. Once the inspection is completed, a report on the findings of the inspection shall be made 
and read out to people involved in the inspection and then signed by them or put his/her 
fingerprint on it for evidence. The report shall be made in four originals; one original version to be attached to the case file, another version given to the owner of the premises, another 
original version give to the local authority and the fourth original version is kept by Customs 
Authorities.  
Chapter 3 Procedures for Submitting a Case to Court  
Article 102. (Revised) Customs Cases Taken to Court  
Customs cases that the Customs Administration can take to court are the following:  1. There is no consent to pay customs duties and other obligations as well as the fine;  
2. The consent report is not complied with;  
3. The seizure of goods and vehicles without any owner;  
4. Security contract is not complied with;  
5. Offense is committed repeatedly or is a criminal offense.  
Article 103. (Revised) Submitting the Case File  
The Customs Administration shall submit a case file to the competent People's Prosecutor or 
People's Court to proceed with a case based on the laws and regulations.  
The case file shall consist of an application, a report regarding the seizure of goods or an order to 
open the investigation, an investigation report and other required documents.  
The contents of the application shall briefly indica te the offense of the offender, the accusations, 
the articles of the law that are violated and the objectives and content of the civil proceeding.  
The prosecution shall comply with the Law on Criminal Procedure or Civil Procedure and other 
relevant laws.  G/VAL/N/1/LAO/1 
 
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  Article 104. (Revised) Rationale for Opening the Investigation  
The Customs Administration will conduct an investigation for a customs case in order to prosecute 
[a case in] court when customs documents are falsified, the case becomes complicated or Customs Authorities are physically attacked and other offenses as defined in the Law on Criminal Procedure 
or other laws that identify criminal offenses.  
For the offenses that are considered as criminal offenses as defined in Article 102 of this Law, 
when having sufficient evidence, the Customs Administration may submit case files to the People's 
Prosecutor to directly take [the case] to court without opening investigations.  
Article 105. (New) Order for Opening Investigation  
The Director General of the Customs Department may issue an order to open an investigation 
under his/her mandate/jurisdiction and according to the provisions of this Law and the Law on 
Criminal Procedure.  
Article 106. (New) Evidence for Case Files  
The Customs Authorities who conduct investigations shall accurately, completely and objectively 
inspect the evidence, including physical, documentary and witness evidence that indicate legal 
offenses, as follows:  
1. Physical evidence refers to the materials used as evidence in a customs offense, such as the 
evidence received from the seizure of goods, objects, materials and other equipment used 
for committing customs offenses;  
2. Documentary evidence refers to information related to detailed customs declaration and 
supplementary documents as defined in Article 64 of this Law, investigation memorandum 
and other records such as accounting books, photos and other documents related to 
customs offenses;  
3. Witness evidence refers to the statement of suspects, witnesses and certified comments 
from experts and others that are related to customs offenses.  
Chapter 4 Resolving Customs Cases  
Article 107. (New) Resolving Customs Cases  
Customs cases where a resolution has been consented to or goods that have been seized and 
ownership has been transferred to the State, are considered to have been finally resolved, except for the criminal offenses.  
In cases where the organizations, civil servants, soldiers and police officers capture, seize or 
confiscate smuggled goods in a face-to-face or urgent situation, they shall immediately provide the 
case along with information and evidence to the nearest Customs Authorities to settle customs cases as defined in this Law.  
Article 108. (New) Allocation of Fine s and/or Sale of Confiscated Goods  
Once a customs case is completed and after deducting all expenses, the remaining money from 
customs duties and other obligations shall be allo cated to the State budget. For the allocation of 
fines or sale of confiscated goods, it is identified in the separate regulation.  
Article 109. (Revised) Pa rticipatory Obligation  
In the course of customs authorities performing their duties to combat and suppress customs 
smuggling activities, civil servants, soldiers, po lice officers and the general public have the 
obligation to participate and cooperate.  G/VAL/N/1/LAO/1 
 
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  PART XV CUSTOMS ADMINISTRATION AND INSPECTION  
Chapter 1 Customs Administration Organization  
Article 110. (Revised) Customs Administration Organization  
The Government centrally and uniformly supervises customs activities nationwide by assigning the 
Ministry of Finance to be the focal point for collaboration with other ministries and relevant local 
administration.  
The Customs Administration Organization consists of:  
1. Ministry of Finance;  
2. Customs Department;  
3. Regional Customs;  
4. Border Customs Checkpoints.  
Article 111. (Revised) Rights and Du ties of the Ministry of Finance  
The Ministry of Finance has the rights and duties to administer customs activities as follows:  1. To research strategies, policy plan, laws and regulations and plans relating to the 
development of customs activities for submission to the government for consideration;  
2. To issue regulations, decisions, orders, instructions and notifications relating to customs 
activities;  
3. To supervise, monitor and inspect the im plementation of the duties of customs 
administration throughout the country;  
4. To propagate and disseminate policies and la ws and regulations relating to customs and 
other relevant laws;  
5. To collaborate with various sectors at central and local levels and to supervise and promote 
the implementation of the Customs Law and regulations;  
6. To develop capacity building and training plan s and provide incentives towards outstanding 
customs officers based on regulations;  
7. To cooperate and liaise with foreign countries and international organizations with regard to 
the administration of customs activities;  
8. To summarize and report to the Government and the National Assembly [on issues] relating 
to customs activities;  
9. To exercise other rights and duties as stipulated in the laws and regulations.  
For the rights and duties of Customs Depart ment, Regional Customs and Border Customs 
Checkpoint, it is stipulated in Article 75 of this Law.  
Chapter 2 Customs Inspection  
Article 112. (Revised) Custom s Inspection Organizations  
Customs Inspection Organizations consist of internal control organizations and external control 
organizations.  
1. Internal control organization:  Ministry of Finance, Financial Audit Department of the Ministry 
of Finance.  
2. External control organizations:  National Assembly; Government Inspection Authority and 
Anti-Corruption; State Audit Organization; Local Administration at all levels, Lao Front for National Construction, Mass organizations, civil society, mass media and other concerned 
sectors that are involved in inspection according to their mandates.  
Article 113. (Revised) Rights and Duties  of Internal Control Organizations  
Internal control organizations have the rights and duties to control the implementation of laws and 
regulations and the performance of duties and resp onsibilities of the Customs Administration at 
each level.  G/VAL/N/1/LAO/1 
 
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  Article 114. (Revised) Rights and Duties  of External Control Organizations  
External control organizations have the rights and du ties to control the implementation of duties of 
the Customs Administration within their scope of rights and duties to ensure efficiency, 
transparency and fairness of customs activities.  
Article 115. (Revised) Forms of Inspection  
Inspection by the Customs Administration consists of three forms as follows:  1. Regular inspection is an inspection that is carried out according to a plan on a regular basis 
and at a specified time;  
2. Inspection upon advance notification is an inspection that is conducted outside the plan 
when it is necessary and that requires advance notification to the person subject to the inspection;  
3. Urgent inspection is the inspection that is carried out quickly without advance notification to 
the person subject to the inspection.  
During an inspection by the Customs Administration, the inspectors shall strictly carry out their 
rights and duties as defined by the laws and regulations.  
PART XVI INCENTIVES TOWARDS OUTSTANDING PERFORMERS AND MEASURES 
AGAINST VIOLATORS  
Chapter 1 Incentives towards Outstanding Performers  
Article 116. Rewards  
Customs Authorities, civil servants, soldiers, police  officers and the general public who contribute 
to customs activities by providing data and information, and were involved directly or indirectly in 
arresting suspects regarding customs offenses, shall receive reward certificates or other benefits 
specified by the Government.  
Article 117. (Revised) Policies towards the Declarant  
Declarants who are honest and [who] accurately an d fully comply with the laws and regulations on 
a timely basis shall be complimented and receive facilitation to operate their export-import of 
goods.  
Chapter 2 Measures against Violators  
Article 118. (Revised) Measures against Declarants  
Any declarant who violates the Customs Law and regulations and other relevant laws and 
regulations, apart from education, warning, fine or prosecuted customs case proceedings, shall be 
subject to compensation for civil damages resulting from their actions; and shall be criminally 
prosecuted based on the severity of the case.  
Article 119. Measures against Customs Authorities and Customs Administration  
Any Customs Authority and Customs Administration who violates the Customs Law and regulations 
but does not cause any damage to customs revenues and other obligations will be educated and warned.  
Any person who intentionally violates the laws and regulations and their action results in some 
damage to customs revenue and other obligations will be subject to disciplinary measures in accordance with the regulations [and] must pay compensation for damages.  
Any person who violates the Customs Law and re gulations and cause substantial damage to the 
interests of the State, the collectives or individual s, such as abuse of position, power and duty for G/VAL/N/1/LAO/1 
 
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  personal interests, taking actions exceeding their au thority, falsifying documents, or taking bribes, 
shall be subject to criminal prosecution depending on the severity of the offence and in accordance with the laws and regulations.  
PART XVII FINAL PROVISIONS  
Article 120. (Revised) Adjustment of Tariff  
In case it is necessary to adjust a tariff to be in line with the national social-economic growth in 
each period, the government may propose to the Standing Committee of the National Assembly for 
consideration and propose to the President of the State to issue temporarily a Presidential Decree 
for promulgation consistent with relevant laws, agreements and international conventions in which Lao PDR is a Party to.  
Article 121. (Revised) Implementation  
The Government of Lao People's Democratic Republic shall implement this Law.  
Article 122. (Revised) Effectiveness  
This Law is effective after 90 days from the date  the President of the Lao People's Democratic 
Republic issues a Presidential Promulgation Decree.  
This law replaces the Customs Law No. 05/NA dated 20 May 2005  Any regulations and provisions that contradict this Law shall be cancelled.  
President of the National 
Assembly 
 
 
 
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