RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/LAO/20 
31 March 2011 
 (11-1592) 
Working Party on the 
Accession of the Lao PDR  
 
 
 
ACCESSION OF LAO PDR 
 
Additional Questions and Replies  
 
 
 The following submission, dated 17 March 2011, is  being circulated at the request of the 
Delegation of the Lao People's Democratic Republic (Lao PDR). 
 
_______________ 
 
  WT/ACC/LAO/20 
 Page i 
 
 
  TABLE OF CONTENTS 
II. ECONOMIC POLICIES..........................................................................................................1  
- Foreign Exchange and Payments ............................................................................................1  
- Investment Regime.............................................................................................................. ......1  
- Pricing Policies ............................................................................................................... ...........2  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ......................................4  
- Powers of Executive, Legislative and Judicial Branches of Government ............................4  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................6  
- Trading Rights ................................................................................................................. .........6  
A. IMPORTANT REGULATIONS .............................................................................................7  
- Fees and charges for services rendered...................................................................................7  
- Application of internal  taxes to imports .................................................................................9  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ ...............9  
- Customs valuation.............................................................................................................. .....15  
- Rules of orgin ................................................................................................................. .........16  
- Pre-shipment inspection ........................................................................................................ .17 
B. EXPORT REGULATIONS ...................................................................................................17  
- Export Restrictions ............................................................................................................ .....17  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................19  
- Industrial policy, including subsidies....................................................................................19  
- Technical barriers to trade, standards and certification.....................................................24  
- Sanitary and phytosanitary measures...................................................................................28  
- Agricultural policies.......................................................................................................... ......37  
(a) Imports........................................................................................................................ .............37  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................38  
- GENERAL........................................................................................................................ .......38  
- Fees and taxes................................................................................................................. .........38  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS ...........................................................................38  
- Copyright and related rights..................................................................................................3 8 
- Geographical indications, including appellations of origin.................................................45  
- Patents........................................................................................................................ ..............48  
- ENFORCEMENT...................................................................................................................5 0 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................60   WT/ACC/LAO/20 
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  II. ECONOMIC POLICIES 
- Foreign Exchange and Payments Question 1 We note that in the Elements of a Draft Working Party Report, there appear to be at least three 
different versions of Lao PDR's Decree Law No. 1/OP "On the Management of Foreign 
Exchange and Precious Metals" referenced, to include 9 September 2002 (paragraph 16), 
17 March 2007 (Table 9), and 17 March 2008 (paragraph 69). 
- We request that Lao PDR please clarify whether the 17 March 2008 version of this 
legislation is the most recent? 
- If so, we request that the Elements of a Draft Working Party Report be updated to 
reflect the most current legislation, as appropriate. 
- We also request that Lao PDR please submit the most current version of this legislation 
to the Working Party for review. 
Answer:
 
Lao PDR confirms that the Presidential Decr ee Law on Management of Foreign Currency and 
Precious Metals No. 01/PC dated 17 March 2008 is the most recent.  
Copy of the legislation is provided for in documen t WT/ACC/LAO/20/Add.1.  It is also available at 
the website of the Bank of Lao PDR:  
http://www.bol.gov.la/lawAct%20lists%20Upda te/02/Decree%20law%2001%20eng.pdf   
Lao PDR reminds that it formally accepted Article VIII of the IMF's Articles of Agreement on 
28 May 2010 (WT/ACC/SPEC/LAO/4, paragraph 14).   Lao PDR invites Members to propose proper 
commitment language. 
- Investment Regime  
Question 2 Paragraphs 19-26:  We have had the opportuni ty to review the Investment Promotion Law 
(passed in 2009, but the English version was only recently available).  We have noted that while 
it seems that Lao PDR is generally open to  foreign investors, the Law imposes certain 
obligations such as that investors need to provi de compensation for impacts that may be caused 
by the business operation.  We would be grateful if Lao PDR could confirm whether this is the case. 
Answer:
 
The compensation obligation of the investors as pr ovided for in Article 69.5 of the Investment 
Promotion Law is a general obligation deriving its b asis from Article 83 of the Contract and Tort Law 
No. O1/NA dated 8 December 2008, which provides th at any person - domestic or foreign investor 
- shall be liable for damages caused by his act.  This is a civil claim basis which requires a complaint from the affected party.  Thus, the compensation as mentioned under Article 69.5 of the Investment 
Promotion Law is not automatic and must be subject  to court proceeding in accordance with the Civil 
Procedure Law of Lao PDR. 
 WT/ACC/LAO/20 
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  Question 3 
Paragraphs 19-26:  Furthermore, it would be useful  if Lao PDR could clarify to what extent the 
Lao PDR Registration Authority is authorized to suspend or even revoke the investment, i.e. if the business has severe negative impacts on the environment or socio-economic development 
(see Part VII, Article 74 "Suspension of Investment"). 
Answer:
 
Pursuant to Article 74 of the Investment Promo tion Law, the investment may be suspended by 
licensing authority in the following two cases: 
- Upon request by the investor in case of financial difficulty; or 
- Upon request by relevant authority or by licensing authority itself in case the investment has 
caused serious adverse impact on the envir onment or the socio-economy, or has been 
operated not in compliance with a pplicable laws or regulations. 
If the cause to the suspension has not been solved within th e timeline as determined by the suspending 
authority, such an investment will be dissol ved in accordance with the Enterprise Law.   
The suspension basis under point 2 above may be u sed by the authority only in case the investment 
operation has violated applicable laws and re gulations of Lao PDR, including environmental 
obligation as provided for under Article 70 of the Investment Promotion Law. 
In accordance with Article 40 of the Decree on Environment Impact Assessment No. 112/PM dated 
16 February 2010, the Authority determines the seve re negative impacts of an investment by the 
following factors:  (i) the degree of severity of the environmental and social impacts; (ii) the severity 
of pollution caused by the violation; (iii) the pr eventive measures for foreseeable environmental and 
social impact have not been put into place; (iv) record of violations committed by the project 
developer; and (v) record of violations  committed by the investment project.  
 
- Pricing Policies 
Question 4 
A Member notes that in Table 6(a): Price Cont rols in Lao PDR, minimum price measures are 
listed as applying to rice (HS 1006).  Further, par agraph 33 states that "For rice, price controls 
implied a minimum price in support of farmers' incomes". 
- Can Lao PDR please clarify whether these mi nimum price measures also apply to sales 
of imported rice? 
- It would be useful to incorporate an explanation of whether this is the case in the draft 
Working Party Report. 
Answer:  
Lao PDR is in the process of reviewing the instrume nt to ensure the minimum price on rice with the 
main objective to make it consistent with WTO requirements.  
In view of the socio-economic importance of rice in Lao PDR, the Government wants to have the 
possibility to ensure a minimum price for farmers.  These prices are not set annually or seasonally and 
the last adjustment was in 2002.  In almost all years, the minimum price is below the international 
market price, and therefore has no impact on the import and export regime of Lao PDR.   WT/ACC/LAO/20 
 Page 3 
 
 
  However, Lao PDR is currently re-examining whether this measure is consistent with the provisions 
of the WTO Agreements, which will ensure a minimum price for our farmers.  
The Prime Minister's Decree on Prices of Goods and Services No. 474/PMO dated 18 November 2010 
was adopted to replace the former Decree on Pri ces No. 207/PMO of 2001.  The new Decree provides 
the principles that prices in Lao PDR are determined  by market force; the Government respects the 
right to price determination and price competition of business operators in a ccordance with the laws 
and regulations.  The Decree also provides for n on-discrimination and transparency principles.  
A copy of the Decree No. 474/PMO can be re quested from the Secret ariat (see document 
WT/ACC/LAO/20/Add.1). 
The list of goods subject to price administration as provided in Tables 6(a) and 6(b) of the document 
WT/ACC/SPEC/LAO/4 is still valid.  Lao PDR is in the process of adopting the list of essential 
utilities (services) subject to price administration.  See the timeline in the revised Legislative Action 
Plan (WT/ACC/LAO/9/Rev.5).   
Lao PDR proposes the following commitment language:   "The representative of Lao PDR confirmed that , from the date of accession, in the application 
of price controls, Lao PDR would apply such me asures in a WTO-consistent fashion, and take 
account of the interests of exporting WTO Memb ers as provided for in Articles III.4 and III.9 
of the GATT 1994, and Article 4 of the Agreemen t on Agriculture, and in Article VIII of the 
General Agreement on Trade in Services.  La o PDR would also publish the list of goods and 
services subject to price control and any change s to this list in its Official Gazette.  
The Working Party took no te of these commitments." 
 
Question 5 
We appreciate Lao PDR's response to Question 7 of WT/ACC/LAO/18, where Lao PDR 
proposed revisions to the commitment text concerning pricing policies.  In working with Lao PDR's proposed text, we are requesting some additional changes: 
 "The representative of Lao PDR confirmed that, from the date of accession, in the 
application of price controls,  Lao PDR would apply price controls  such measures in a 
WTO-consistent fashion, including with Articles III.4 and III.9 of the GATT 1994, and 
Article 4 of the Agreement on Agriculture, and in Article VIII of the General Agreement 
on Trade in Services,  and take account of the interests of exporting WTO Members as 
provided for in Articles III.4 and III.9 of the GATT  1994, and Article  4 of the 
Agreement on Agriculture, and in Arti cle VIII of the General Agreement on Trade in 
Services .  Lao PDR would also publish the list of goods and services subject to price 
control and any changes to this list in its Official Gazette.  The Working Party took note of these commitments." WT/ACC/LAO/20 
Page 4  
 
  Answer:
 
Lao PDR proposes the following commitment language:   "The representative of Lao PDR confirmed that , from the date of accession, in the application 
of price controls, Lao PDR would apply such me asures in a WTO-consistent fashion, and take 
account of the interests of exporting WTO Memb ers as provided for in Articles III.4 and III.9 
of the GATT 1994, and Article 4 of the Agreemen t on Agriculture, and in Article VIII of the 
General Agreement on Trade in Services.  La o PDR would also publish the list of goods and 
services subject to price control and any change s to this list in its Official Gazette.  
The Working Party took no te of these commitments." 
 III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government Question 6 We appreciate Lao PDR's response to Question 10 of WT/ACC/LAO/18, and its proposed 
revisions to the commitment text concerning Lao PDR's framework for administrative and 
judicial review of the Government's actions.  Ho wever, we note that Lao PDR's revision left out 
the phrase "without penalty" with regard to appe als.  We note that the language "without 
penalty" is found in some of the WTO A nnex 1 Agreements, e.g., Customs Valuation. 
Given this obligation, we request that the text on  "without penalty" be retained.  We also have 
some additional non-substantive revisions to the text.  The text would now read: 
 "The representative of
 Lao PDR confirms that the current constitution, laws and 
regulations provide the necessary institutio nal base for the prompt administrative and 
judicial review of the administrative actions.  The representative of  Lao PDR further 
confirms that from the date of accession its  Lao PDR's  laws and regulations would 
provide individuals or enterprises affected by any administrative action subject to WTO provisions, the right to appeal such action, without penalty,
 to the courts or other 
independent tribunal in conformity with WTO obligations, including those set out in 
Article X of the GATT 1994, Article 23 of the Agreement on Subsidies and Countervailing Measures, Article 11 of the Agree ment on Implementation of Article VII 
of the GATT 1994, Article 62 of the Agreement on Trade-Related Aspects of Intellectual Property Rights and Article VI of GATS.  The Working Party took note of these 
commitments." 
Answer:
 
Lao PDR accepts the proposed commitment language.   WT/ACC/LAO/20 
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  Question 7 
We appreciate Lao PDR's response to Question 11 of WT/ACC/LAO/18, and Lao PDR's 
proposed revisions to the commitment text concerning how central authorities will address 
complaints by importers or exporters. 
We can largely accept Lao PDR's revisions, on the condition that the word "promptly" is added 
to the phrase "central authorities would investigat e such claims promptly".  The text would now 
read: 
 "Asked how the central authorities might address complaints by importers or exporters 
of sub-central entities violating WTO provisions, the representative of Lao PDR replied that from the date of accession, Lao PDR would apply WTO provisions, including 
Lao PDR's Protocol of Accession, uniformly throughout the entire customs territory, 
including its special economic zones, and oth er areas where special regimes for tariffs, 
taxes and regulations were established.  Article 4 of the "Law on Resolving of Public Complaints" No. 07/NA of 9 November 2005 provided the legal redress to companies facing an apparent breach of WTO obligations  by sub-central authorities.  He further 
confirmed that when informed of a situation where WTO provisions were allegedly not 
being applied or were applied in a non-uniform manner, central authorities would investigate such claims promptly
 and, if the charges were found to be valid, act to 
enforce WTO provisions without requiring a ffected parties to petition through the 
courts.  The Working Party took note of these commitments." 
Answer:  
Lao PDR proposes the following commitment language: 
"Asked how the central authorities might addr ess complaints by importers or exporters of 
sub-central entities violating WTO provisions, the representative of Lao PDR replied that 
from the date of accession, Lao PDR would apply WTO provisions, including Lao PDR's 
Protocol of Accession, uniformly throughout the entire customs territory, including its special 
economic zones, and other areas where special re gimes for tariffs, taxe s and regulations were 
established.  Article 4 of the "Law on Reso lving of Public Complaints" No. 07/NA of 
9 November 2005 provided the legal redress to companies facing an apparent breach of WTO obligations by sub-central authorities.  He  further confirmed that when informed of a 
situation where WTO provisions were allegedly not being applied or were applied in a  
non-uniform manner, central authorities would investigate such claims promptly
 and, if the 
charges were found to be valid, act to enfo rce WTO provisions without requiring affected 
parties to petition through the c ourts.  The Working Party took note of these commitments." 
LAO PDR does not object to the fact that such clai ms should be investigated promptly.  However, 
Lao PDR does not believe that it has to be a dded in the commitment for the following reasons: 
- It does not add anything as it is implicit. Mo reover the concept is vague and gives place to 
different interpretations. Promptly in a str ong institutional setting may not mean the same 
thing as in a LDC like Lao PDR; 
- It does not figure in WTO texts except in the CVA; and - Other Recently Acceded Members have not includ ed this in their commi tments. The fact that 
it is included in the commitments of Lao PDR could be interpreted as if Lao PDR takes a 
special commitment concerning the time required to investigate. WT/ACC/LAO/20 
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  IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights  Question 8 Paragraphs 47-52:  The Legislative Action Plan indicates that an amendment to the Decree on 
the Import and Export Management is being p repared and is planned to be approved by the 
end of 2010.  As stated during the Working Pa rty meeting, Lao PDR indicated that this 
amendment would integrate the necessary provisi ons to comply with the WTO provisions on 
trading rights, and remove all WTO inconsistencies. 
We would be grateful if Lao PDR could provide  precise information regarding how this Decree 
will allow for the registration as importers or ex porters of firms or individuals located outside 
the country.   
Furthermore, we would be interested to know the indicative timing when Lao PDR will be in a 
position to share the text of this Decree with the Working Party Members.  
Answer:
 
Lao PDR has embarked upon liberali zation of its import and export re gimes to be in line with WTO 
rules and principles.  In addition to the Decree  No. 180/PMO on Import Licensing Procedures, dated 
7 July 2009, the Prime Minister's Decree on Import and Export of Goods has been drafted and in finalization stage of adoption.  The new Decree cove rs substantive elements of the WTO Agreements, 
in particular GATT Articles II, III, X and XI a nd will replace the Decree No. 205/PM of 2001on 
Import and Export Management.  The draft Decree on Import and Export of Goods was submitted to 
the Government for approval and its adoption is expected by the end of April 2011.  Once adopted, 
Lao PDR will provide a copy to the WTO Secretariat for updating the Elements of a Draft Working 
Party Report.  
With respect to trading rights, the "importer of  record", i.e. importers who have no commercial 
presence will be allowed to import goods into Lao PD R and can sell those goods to enterprises having 
the rights to distribute them. 
Question 9 Paragraph 52 of the Elements of the Draft Working Party Report states the following:  
"in light of Members' comments and foll owing consultations with stakeholders, 
[the representative of Lao PDR] stated th at Lao PDR was amending Decree No. 205/PM 
"On Import and Export Management" of 11 October 2001 to bring its regime in conformity with WTO obligations on tradin g rights.  These amendments were expected 
to be adopted in 2010 and implementing reg ulations would be enacted by the end of 
2011." 
What is the present status of the amendments to Decree No. 205?  By what date does Lao PDR 
expect them to be enacted? 
Answer:
 
See the response to Question 8.   WT/ACC/LAO/20 
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  A. IMPORTANT REGULATIONS 
- Fees and charges for services rendered Question 10 Lao PDR has described the following fees on or in  connection with importation and exportation: 
Lao PDR Fees on or in Connection with Importation or Exportation 
Fee or Charge for Services Rendered Amount of Fee or Charge Ministry or Agency 
Responsible 
Inspection of imported medicines KN 20 ,000 per invoice Ministry of Health 
Foodstuffs:   
Issuing a permit for imports  KN 20,0 00 per invoice Ministry of Health 
Biennial registration of imported products KN 50,000 per product 
registered Ministry of Health 
Quality inspection of import of fuel, steel 
bar and cement 0.01% of each import 
value* The National Authority for 
Science and Technology 
Fee for Import or Export Licence  (List Ministries) 
Customs Processing Fee for Import and 
Export  Customs Service 
* We understand the ad valorem  fee is being reviewed and will be converted to a specific rate. 
- When, and at what level, will the NAST fee fo r quality inspection of imported fuel, steel 
bar and cement be converted to approxima te the cost of the service rendered?  
Please correct the shaded part of the chart. 
- What fees does Lao PDR's customs service charge for import and export processing?  
Please provide the appropriate information in the shaded part of the chart. 
- What fees are charged by the import and ex port licensing agencies for securing licenses?  
Please provide the appropriate information in the shaded part of the chart. 
- Are the fees listed in the chart above the only ones that Lao PDR charges on or in 
connection with importation and exportation?   Are there comparable fees on domestic 
similar products? 
- Are there stamp taxes on official document s necessary for importation or exportation? 
- Does Lao PDR have any port fees or warehouse fees? WT/ACC/LAO/20 
Page 8  
 
  Answer:
 
See the fees and charges related to import and export of goods in the table below: 
Lao PDR Fees on or in Connection with Importation or Exportation 
Fee or Charge for Services Rendered Amount of Fee or Charge Ministry or Agency Responsible 
Inspection of imported medicines KN 20,000 per invoice Ministry of Health 
Foodstuffs:     
Issuing a permit for imports  KN 20,000 per invoice Ministry of Health 
Biennial registration of imported products KN 50,000 per product 
registered Ministry of Health 
Quality inspection of import of fuel, steel bar 
and cement KN 600,000 per invoice 
 National Authority for Science 
and Technology 
Fee for Import or Export Licence -  Import license for vehicles and parts  
-  Import license for machines, raw 
materials, semi-final products or other parts for installation, manufacturing, assembly or 
processing in factories  KN 10,000 per set 
 
KN 40,000 per set Ministry of Industry and 
Commerce and relevant 
competent licensing authorities 
Customs Processing Fee for Import and 
Export 1. Certificate of Vehicles duty payment; 
2. Customs declaration form (large); 
3. Customs declaration form (attachment 
form); 
4. Customs seal; 
5. Sticker (D9); 6. Duty stamp(big one); 
7. Duty stamp (medium, small); 
8. Stamp for duty free alcohol, stamp for 
cigarette; 
9. Certificate of duty payment of vehicle 
for those produced and assembled in 
the system of IKD; 
10. Customs declaration form for vehicle 
for touring (D53); 
11. Customs declaratio n form for guarantee 
(large one D86); 
12. Customs declaratio n form for guarantee 
(attachment form) (D86); 
13. Retail customs declaration form (D44); 14. Service charge of customs data 
management system;  
 KN 2,000 
 
KN 500 KN 250 
 
KN 3,000 KN 4,000 
KN 600 
KN 500 
KN 1,500 
 KN 2,000 
 
 KN 2,000 
 
KN 500  
KN 250 
 KN 500 
 
KN 100,000  Customs Service 
 
Warehouse fees Fees are collected in non 
ad valorem , depending on 
type of goods and period of storage. Warehouse authorities 
 
As provided for in the response to Question 26 of document WT/ACC/LAO/18, the ad valorem 
inspection fees for fuel, steel bar and cement were converted to the specific rate (KN 600,000 
per invoice) following the adoption of Regula tion No. 1226/PMO-NAST, dated 17 July 2009. 
  WT/ACC/LAO/20 
 Page 9 
 
 
  Lao PDR proposes the following commitment language:  
 "The representative of Lao PDR confirms th at from the date of accession Lao PDR would 
apply all fees and charges for services related to imports and exports would be operated in 
conformity with the provisions of the WTO Agre ement, in particular Articles VIII and X of 
the GATT 1994.  The Working Party took note of this commitment." 
- Application of internal taxes to imports Question 11 Paragraph 62 states:  "According to Article 14 of the Tax Law, the taxable base for turnover 
tax on imported goods included import duty and excise tax, if applicable, whereas domestically produced goods circulated in Lao PDR were taxed on  the basis of actual sales price, the actual 
value of the contract for goods produced under co ntractual arrangements, and the actual price 
paid by the customers for sales on credit". 
Can Lao PDR please clarify whether the taxable base for turnover tax for domestic goods also 
includes the excise component, where applicable? 
Answer: 
 
According to the MOF Guideline No. 2137/MOF Secti on 2, paragraph 5, the taxable base for turnover 
tax is calculated as follows:  
- For domestic goods: 
[Whole sale factory price + excise tax (if applicable) + fees (if applicable)] x Turnover tax  
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 12 
Paragraph 67 states that the "importation of certain types of goods considered to pose a serious 
threat to the national security, public order, he alth or the environment" was prohibited.  
Table 8 shows the eight product groups that were subject to import prohibition. 
Are bans on some products listed in Table 8 (fo r example, used products such as garments, 
shoes and clothes; interior decorating items)  accompanied by domestic policies to address 
domestically produced goods? 
Answer:  
Lao PDR has been liberalizing its quantitative import restrictions, including prohibitions and licensing 
systems with a viewing to bringing them into compliance with WTO Agreements.  Import prohibitions are being transformed to WTO-c onsistent alternative measures whereas those to 
be retained are to be justified under the WTO.  As such the revision of list of import prohibitions 
(Notification No. 2151) is in the finalization stage and expected to be adopted by the end of 
March 2011.  The used products are to be removed from the revised list of import prohibited goods.  
Once the list is adopted, Lao PDR will provide a copy to the WTO Secretariat for updating the 
Elements of a Draft Working Party Report.  
See the timeline in the revised Legislative Action Plan (WT/ACC/LAO/9/Rev.5). WT/ACC/LAO/20 
Page 10  
 
  Question 13 
Table 9 (referred to in paragraph 68) lists produc ts subject to non-automatic import licensing 
procedures.  A Member notes that for rice, th e rationale for non-automatic import licensing 
procedures was to control smuggling/ illegal trade. 
Can Lao PDR please explain what measures they use to control import of rice and how these 
measures work to combat smuggling/ illegal trade? 
Answer:
 
The objective of rice being subjected to non-automati c licensing is for socio-economic considerations 
and food security reasons.  See the timeline for revising the list of goods subject to non-automatic licensing in the revised Legislative Action Plan (WT/ACC/LAO/9/Rev.5).    
Question 14 Paragraph 68 notes that Lao PDR was in the "pro cess of developing the list of goods subject to 
automatic licensing".  We would be interested in any updates that Lao PDR could provide in relation to this process. 
Answer:
 
Lao PDR has embarked upon aligning its automatic import licensing in line with the provisions of 
Decree No. 180/PM on Import Licensing Procedures, in particular Article 4 (Principles on import 
licensing procedures) and Article 5 (Automatic Lice nsing).  The list of goods subject to automatic 
import licensing is being consolidated in consulta tion with relevant line ministries and businesses as 
part of the revision of Notification No. 2151/MOIC .DIMEX of 2009.  The list is expected to be 
adopted by the end of March 2011.  Once adopted, Lao PDR will provide a copy to the 
WTO Secretariat for updating the Elements of a Draft Working Party Report.  
 See the timeline in the revised Legislative Action Plan (WT/ACC/LAO/9/Rev.5). 
Question 15 
We note that in paragraph 70, "lists of controlled goods were currently under review with a 
view to consolidating them."  We would be intere sted in further information on the status of the 
review. 
Answer:
 
The Notification on the List of Controlled Goods  Subject to Non-Automatic Import and Export 
Licensing in Lao PDR No. 2151/MOIC.DIMEX of 2009 is in the finalization stage of revising and 
expected to be adopted by the end of March 2011.  Once adopted, Lao PDR will provide a copy to the 
WTO Secretariat for updating the Elements of a Draft Working Party Report. 
See also the responses to Questions 12 and 14.   WT/ACC/LAO/20 
 Page 11 
 
 
  Question 16 
In reply to Question 33 of WT/ACC/LAO/18, Lao PDR states that it is preparing a list of 
products, including agricultural products, propo sed to be subject to automatic licensing for 
import.   
- We request that Lao PDR please submit this list to the Working Party for review. 
- The Legislative Action Plan indicates this list will be completed by the end of 2010.  
Can Lao PDR please provide the current status of this list? 
- Please describe the sorts of goods that  will be subject to automatic licensing. 
Answer:  
Lao PDR has embarked upon aligning its automatic import licensing in line with the provisions of 
Decree No. 180/PM on Import Licensing Procedures, in particular Article 4 (Principles on import 
licensing procedures) and Article 5 (Automatic lic ensing).  The list of goods subject to automatic 
import licensing is being consolidated and finali zed as part of the revision of Notification 
No. 2151/MOIC.DIMEX of 2009.  The list is expected to be adopted by the end of March 2011.  Once adopted, Lao PDR will provide a copy to the WTO Secretariat for updating the Elements of a 
Draft Working Party Report. 
See the timeline in the revised Legislative Action Plan (WT/ACC/LAO/9/Rev.5). 
Question 17 
With respect to paragraph 68 of the Elemen ts of a Draft Working Party Report:   
When was the system described in Prime Mi nister's Decree No. 180/PM and Ministry of 
Industry and Commerce Notification No. 2151/MOIC.DIMEX implemented? 
Answer:
 
As stipulated in the final provisions of the Prime Minister's Decree No. 180/PM on Import Licensing 
Procedures and Ministry of Industry and Comm erce Notification No. 2151/MOIC.DIMEX, the 
system enters into force 90 days after their signature.   
To fully and consistently implement the Decree No 180/PM some line Ministries may further 
elaborate criteria and procedures as was done in  the Notification No. 2151/MOIC.DIMEX for the 
MOIC. 
Question 18 
With respect to Prime Minister's Decree No. 180/ PM "Decree on Import Licensing Procedures" 
of 7 July 2009: 
- Article 2 refers to "legal entities entitl ed to import goods."  Where are those "legal 
entities" defined? 
- Does Lao PDR have activity licensing requirements or other restrictions on which 
individuals and firms can import? 
- Article 4 refers to the "import licensing authority."  Is MOIC the import licensing 
authority? 
- Article 5 states that importers shall, upon re quest, be "given a reason for the refusal" of 
a licence.  Will this explanation be in writing?  Is that legally required? WT/ACC/LAO/20 
Page 12  
 
  - Articles 6.4 and 7.4 state that MOIC w ill list the goods subject to automatic and 
non-automatic licensing after coordination a nd consultation with the relevant Ministries 
and notification to business entities.  Ho w are domestic and foreign stakeholders 
consulted before the list is finalized?  Is the dr aft list notified and published in draft for 
a period prior to implementation for public comment? 
- Please confirm that the final list of import s and exports under control is published both 
on the MOIC website and the websites and offices of the "import licensing agencies." 
- Do the procedures in this Decree apply fo r import licenses for all import licensing 
agencies? 
- Please confirm that MOIC is responsible for coordinating the list of goods subject to 
import and export licensing, but that it is the line Ministries (the "import licensing 
agencies") that actually issue the licenses a nd are responsible for making the application 
procedures available to traders. 
- Please describe the role of the provincial offices of the Ministries in Lao PDR's import 
and export licensing procedures. 
Answer:
 
The legal entities are not defined in Decree No. 180/PM.  However, please be informed that Lao PDR 
is adopting a Decree on Import and Export of Goods (to replace Decree No. 205/PM of 2001), in which the term "legal entities" will be extended to legal entities which are registered in any foreign 
countries. 
With respect to the Enterprise Law (2005), enterp rises -- registered for a specific business operation 
such as distributors of medicine, car, and petroleum -- have to fulfil some particular conditions or 
requirements from relevant agencies prior to get a business certificate. 
Activity licences often do give also the rights to import, but they are not a condition for importing. The Ministry of Industry and Commerce is an impo rt licensing authority, and so do other relevant 
Ministries and Agencies, which are specified in Notification No. 2151/MOIC.DIMEX on the List of 
Controlled Goods Subject to Non-Automatic Import and Export Licensing in Lao PDR.  
The Notification is being revised.  See the ti meline in the revised Legislative Action Plan 
(WT/ACC/LAO/9/Rev.5).  In addition, according to the draft Decree on Import and Export of Goods, the licensing authority is the "Governmental Agen cies having powers to administer and license the 
import and export of each type of goods".  This mean s that the licensing authority depends on the type 
of license requested.  For example, a license to  import pharmaceuticals would require a license from 
the Ministry of Public Health, in which there w ould be an import licensing authority for such goods. 
Refer to Article 5.9 of Decree No. 180/PM, dated 7 July 2009 on Import Licensing Procedures, it 
stipulates that upon request, a refused applicant should be given the reason in writing for the refusal of 
a licence.   
The consultation meetings with relevant stakehol ders including ministries and business sector have 
been conducted before the list is finalized to c over participants throughout the country.  The 
participants include representatives from various  provincial offices and local businessmen. 
Lao PDR confirms that the final list of imports  and exports licensing is published on the MOIC 
website and offices of the import licensing agencies. 
Lao PDR confirms that the procedures in this Decr ee apply for import license for all import licensing 
agencies.  WT/ACC/LAO/20 
 Page 13 
 
 
  Lao PDR confirms that MOIC is responsible for co ordinating the list of goods subject to import and 
export licensing, but that it is the line ministries (t he "import licensing agencies") that actually issue 
the licenses and are responsible for making the a pplication procedures available to traders.  
See Decree No. 180/PM on Import Licensing Procedur es.  The first two sentences of paragraph 70 of 
the document WT/ACC/SPEC/LAO/4 should be appropriately reflected.  
The provincial offices of ministries have the role to act as import and export licensing as specified in 
Notification No. 2151/MOIC.DIMEX.  The licensing pr ocedures are to be uniformly implemented at 
both the Ministerial and Provincial levels as ensh rined in Decree No. 180/PM on Import Licensing 
Procedures (Articles 1 and 10).  Notification No. 2151/MOIC.DIMEX is being revised.  See the timeline in the revised Legislative Action Plan (WT/ACC/LAO/9/Rev.5).   
Question 19 Are any of the controlled imports or export lis ted in Notification No. 2151/MOIC.DIMEX under 
quota?  What procedures have been developed for quota allocation? 
Answer:
 
Lao PDR confirms that no controlled impor ts or exports listed in Notification 
No. 2151/MOIC.DIMEX are under quotas.   
Question 20 
Please describe any fees charged for obtaining an import licence. 
Answer:  
See the response to Question 10. 
Question 21 
Concerning prohibition of imports of used pr oducts, including engines, electronic goods, 
appliances, medical equipment: 
We have in the past noted that this is an unne cessary trade barrier to trade in remanufactured 
and refurbished products, and we draw your at tention to the report on this contained in 
document TN/MA/W/18/Add.11: "Market Access Non-agricultural Products - Negotiating 
NTBs Related to Remanufacturing and Refurb ishing".  We believe that a form of 
non-automatic licensing would be more appr opriate.  Has Lao PDR considered this? 
Answer:  
Lao PDR takes note of Members' comments.  In the process of improving the import and export 
licensing regime, the used products have been move d from the list of import prohibition to the list of 
non-automatic licensing.  
See also the response to Question 12.  WT/ACC/LAO/20 
Page 14  
 
  Question 22 
Paragraph 71 of the Elements of a Draft Working Party Report explains that all goods, which 
are not prohibited, are currently subject to some form of licensing, whether it is non-automatic 
licensing or automatic licensing. 
- Approximately what portion of Lao PDR' s imports and exports will be subject to 
automatic and to non-automatic licensing? 
- Does Lao PDR anticipate reducing the list of goods subject to automatic licensing, so 
that not all imports require some form of licence? 
Answer:
 
Paragraph 71 refers to the situation before  the reforms were undertaken.  Notification 
No. 2151/MOIC.DIMEX is in the final stage of revi sion and the number of goods subject to licensing 
would be minimal and implemented as per the provisi ons of Decree No. 180/PM.  See the timeline in 
the revised Legislative Action Plan (WT/ACC/LAO/9/Rev.5). 
In addition, the draft Decree on Import and Export of  Goods states that the goods will proceed to the 
customs clearance at the relevant customs checkpoi nt directly, if they are not falling into the 
following two cases:   
- import or export goods which are in the list of  goods subjected to licensing after obtaining 
import or export license from the Import and Export Administration Authorities; or  
- import or export goods which are in the list of  goods subjected to sanitary and phytosanitary 
measures and technical regulations after passing the control or certification of sanitary and phytosanitary measures or technical regulations from the Import and Export Administration 
Authorities or from any other certification authorities of international standard and of the 
exporting country or a third country recognized by the Government of Lao PDR.   
Question 23 
We understand from the responses in document WT/ACC/LAO/18 that the Prime Minister's 
Decree No. 180/PM of 7 July 2009 "Decree on Im port Licensing Procedures" is the basis for 
Lao PDR's import licensing regime. 
- Please identify the law/decree that is the basis for Lao PDR's export licensing 
procedures. 
- The Legislative Action Plan refers to a pending amendment to the Decree on Import and 
Export Management.  What does this decree cover and what is its relationship to Decree No. 180/PM? 
Answer:
 
The import licensing procedures are provided for in the Decree No. 180/PM on Import Licensing 
Procedures.  According to the draft Decree on Impo rt and Export of Goods, the licensing procedures 
set out in Decree No. 180/PM are also applicable to export licensing.  WT/ACC/LAO/20 
 Page 15 
 
 
  Question 24 
We request that Lao PDR provide the Working Party with a draft Response to the 
Questionnaire on Import Licensing Procedur es, required annually of all WTO Members, 
perhaps after Lao PDR has enacted its Notificati on of the List of Goods Subject to Automatic 
Licensing and amendment to the Decree on Import and Export Management. 
Answer:  
Lao PDR is preparing the response to the Questionna ire while taking inputs from the legislation being 
developed.  It is expected to be submitted to Members for review by the end of 2011.   
- Customs valuation 
Question 25 
We appreciate Lao PDR's submission of a decree and guidelines concerning customs valuation.  
Regarding the Instruction of the Minister of Finance on Customs Valuation (dated 16 June 2010) and the Guidance of the Ministry of Finance on the Implementation of the Customs Law No. 05/NA (dated 12 March 2009), we have the following questions: 
- The Customs Valuation Instruction appears to be missing a number of provisions of the 
WTO Agreement on Customs Valuation.  Ho w does Lao PDR plan to incorporate the 
missing provisions, including the Interpret ative Notes, Article 10 (confidentiality), 
Article 11 (the right to appeal without penalty), Article 13 (the right to withdraw goods pending a final determination)  and Article 16 (right to a written explanation as to how 
the customs value was determined)? 
- Additionally, we have concerns with Article 11 of the Instruction, which provides for the 
use of reference prices.  How long does L ao PDR intend to maintain such reference 
prices?  Will the use of references prices be phased out prior to accession? 
- Which goods does Lao PDR consid er to be sensitive and high risk, so that they are 
subject to reference prices? 
Answer:
 
The right to appeal is provided for in Article 29 of Customs Law No. 05/PM, dated 20 May 2005, and 
Article 9 of the Prime Minister's Decree implementing the Customs Law No. 362/PM, dated 
19 October 2007. 
With technical assistance provided by the IMF,  World Bank and UNCTAD, Lao PDR has embarked 
upon substantive customs modernization and reform  programs.  Key progress made up to the end of 
2010 include:  
- Risk management team was created to coll ect risk management data (company profile, 
import-export statistics and duties collection); 
- On-going trainings held for customs staf f on the application of risk management; 
- Commencement of automation project implementation - ASYCUDA World 
(Phase 1: Development of Prototype) supported by the World Bank and UNCTAD; 
- Ministerial Regulation on Customs Valuati on No. 1398 /PM was adopted on 16 June 2010;  
- Implementation of the CVA by starting to apply transaction value (and the other methods 
provided for in the CVA) to goods im ported under FTAs (e.g. CEPT-AFTA) and by 
Government projects and international or ganizations (began in November 2010);  WT/ACC/LAO/20 
Page 16  
 
  - Post release review of customs declaration w as carried out to verify accuracy of declared 
value (based on the Post Clearance Audit (P CA) Strategic Plan and work plan);  
- On-going training and outreach programmes provided to customs officers and traders on 
WTO CVA;  
- Reference price was reduced from 2,000 to 800 items; and 
- Customs Department began to prepare Regulation on PCA procedures. 
Lao PDR takes note of Members' comments on other provisions of the Interpretative Notes.  In 2011, 
Lao PDR has begun to review the D ecree and regulations implementing the Customs Law with a view 
to bringing them into compliance with the WTO CVA by December 2012.  See the timeline in the 
revised Customs Valuation Action Plan (WT/ACC/LAO/12/Rev.3).  
Lao PDR is in the process of gradual eliminati on of the reference prices.  The number of goods 
subject to referenced prices has been substantially reduced from 2,000 tariff lines (HS 8 digits) in 
2009 to 800 tariff lines in 2010 and w ill be further cut to less than 300 tariff lines by the end of 2011.  
Goods that Lao PDR considers to be sensitive and high risks for the purpose of reference prices are 
motor vehicles and parts; luxury goods (beer, spark ling wine, wine, whisky, cigarette and cigar, and 
perfume); construction materials (cement, roof ing and steel bar); and petroleum and gas. 
Lao PDR confirms that it will bring legal framework into compliance with the CVA by 
December 2012 while full implementation of the pr ovisions of CVA by is to be achieved by 
December 2015.  
- Rules of origin 
Question 26 
We appreciate Lao PDR having submitted it s April 2010 Decree on Origin of Import and 
Export Goods to the Working Party for review.  Given this decree, we recommend the following 
two commitments be included in this section of the Elements of a Draft Working Party Report: 
 "The representative of Lao PDR confirmed that certificates of origin will be required 
for preferential purposes only, and will not be necessary for MFN treatment." 
 "The representative of Lao PDR confirmed that, from the date of accession, Lao PDR's 
preferential and non-preferential rules of origin would comply fully with the 
WTO Agreement on Rules of Origin, including the requirements of Article 2(h) and Annex II, paragraph 3(d) of the Agreement, which require provision of an assessment of 
the origin of the import upon the request of the importer or any person with a justifiable cause.  An assessment shall be issued as soon as possible, but no later than 150 days after 
the request for such an assessment, provide d that all necessary elements have been 
submitted.  Any such assessment would remain valid for three years.  The Working Party took note of these commitments." 
Answer:
 
Lao PDR accepts the proposed commitment language.   WT/ACC/LAO/20 
 Page 17 
 
 
  - Pre-shipment inspection 
Question 27 We appreciate Lao PDR's response to Question 54 of WT/ACC/LAO/18, however, we note that 
Lao PDR has requested to delete the following  text from the commitment that it would 
undertake on PSI: 
 "He further confirmed that Lao PDR would ensure that such enterprises operating on 
its behalf complied with the provisions of  WTO agreements including the Agreements 
on Technical Barriers to Trade, the Appl ication of Sanitary and Phytosanitary 
Measures, Import Licensing Procedures, the Implementation of Article VII, Rules of 
Origin, the Implementation of Article VI (Antidumping), Subsidies and Countervailing 
Measures, Safeguards, and Agriculture".   We would like to clarify that this commitment 
reflects Lao PDR's obligations under the PSI Agreement. 
As Lao PDR will be assuming this obligation upo n accession, we request that the above text be 
maintained. 
Answer:  
Lao PDR reiterates its proposed commitment language in Question 54 of WT/ACC/LAO/18 as 
follows: 
 "The representative of Lao PDR confirmed that  if pre-shipment inspection requirements were 
introduced, they would be temporary and in  conformity with the requirements of 
the Agreement on Pre-shipment Inspection and other related WTO agreements.  He further 
confirmed that the establishment of charges and f ees would be consistent with Article VIII of 
the GATT 1994 and Lao PDR would ensure th at the due process and transparency 
requirements of the WTO Agreements, in par ticular Article X of the GATT 1994, would be 
applied.  He also confirmed that decisions by  such firms could be appealed by importers in 
the same way as administrative decisions taken by the Government of Lao PDR.  The Working Party took no te of these commitments." 
As Lao PDR accepts the commitment that if pre- shipment inspection requirements were introduced 
they would be in conformity with the requirement s of the Agreement on Pre-shipment Inspection and 
other related WTO Agreements, we believe th at this additional phrase is redundant.   
B. EXPORT REGULATIONS 
- Export Restrictions Question 28 
Paragraphs 86-90:   During the Working Party meeting, Lao PDR affirmed that it applies 
export duties on other products not mentioned in  Table 10 of the Elements of a Draft Working 
Party Report.  In this regard, Lao PDR promis ed to provide an updated and revised list of 
products subject to export duties accordingly.  Therefore, we encourage Lao PDR to provide an 
extensive list of products before the next Working Party meeting. WT/ACC/LAO/20 
Page 18  
 
  Answer:
 
The list of products subject to export duties is  being revised and will be adopted through the 
Presidential Edict on Export Duties by the end of 2011.  The draft Presidential Edict was completed 
by the Ministry of Finance and, as of March 2011, is seeking endorsement from the Ministry of Justice.  If endorsed, it will be then forwarded to  the Government and the National Assembly for 
consideration and approval.   
Once completed, Lao PDR will submit the Presidentia l Edict to the Working Party for review.   
Question 29 
Paragraphs 86-90:   In its written replies, Lao PDR has reiterated that it needs to "continue to 
avail itself of the use of export duties" (see Question 56 of WT/ACC/LAO/18).  However, as 
Lao PDR indicates in the reply to Question 55, th e revenues from export duties only amount to 
approximately KN 43 billion per year, "equival ent to around 1 per cent of Government 
revenues".  In view of these duties' low contri bution to public revenues, could Lao PDR be more 
explicit regarding the absolute need for mainta ining export duties on an unlimited number of 
products? 
Answer:
 
Lao PDR reiterates its need to continue to avail itself of the use of export duties to maintain a 
minimum of policy space.  However, Lao PDR confirms that it will comply with all disciplines in the GATT 1994 and WTO Agreements as regards to export duties.  
Question 30 
Furthermore, could Lao PDR consider the possibilit y of applying alternative measures that 
could foster the production of those domest ic products targeted by export duties? 
Answer:
 
Lao PDR takes note of Members' comments and w ill take them into account.  Lao PDR does not 
intend to apply export duties to a large number of  products.  From a development point of view, 
Lao PDR has limited possibilities to foster value-a dded production and/or reve nue sources.  Therefore 
it intends to maintain the possibility of imposing WTO conform export duties for revenue or 
development purposes.   
See also the response to Question 29. 
Question 31 
Paragraph 90 states "banning of exportation of logs and other forestry products from natural 
forests could be justified under Article XX(g) of the GATT 1994".  Article XX(g) of 
the GATT 1994 states "relating to the conservation of exhaustible natural resources if such 
measures are made effective in conjunction wi th restrictions on domestic production or 
consumption". 
Can Lao PDR please explain what restrictions are in place domestically that complement the 
banning of exportation of logs and other forestry products?    WT/ACC/LAO/20 
 Page 19 
 
 
  Answer:  
Restrictions in place domestically that compleme nt the banning of exporta tion of logs and other 
forestry products are as follows:   
The Government of Lao PDR has a ban in place concer ning the exploitation of logs and other forestry 
products from natural forests.   
Any exploitation of natural forest is in principle forbidden.  For areas that have to be deforested 
because of development projects such as dams and roads construction, the Government determines the 
quantity of logs to be cut and distributes them through bidding procedures. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 32 
Paragraph 97 notes that "Lao PDR was also reviewing and amending the local content 
requirements in the legislation governing border trade zones and the special economic zone".  
We would be interested in further information on the status of this review. 
Answer:  
The Prime Minister has issued the Decree No. 443/PM on Specific and Special Economic Zone in 
Lao PDR, dated 26 October 2010.  The Decree sti pulates principles, regulations, establishment, 
operation and other policies regarding specific and special economic zones throughout the country.  
The Decree further elaborates provisions of Article 59 of the Investment Promotion Law.  Article 37 
of Decree No. 443/PM outlines an exhaustive list of incentive that can be given in those zones.  
The list is in compliance with SCM Agreement.  Existing Decrees for some Border Trade Zones and 
Special Economic Zones still have incentives based on local content requirement.  Lao PDR is in the 
process of revising those decrees.  To this effect, Decree No. 162 of 8 October 2002 "On Border Trade Zone at Boten, Louangnamtha Province" is terminated, and Lao PDR will eliminate the local 
content requirement in the remaining z ones (Savan-Seno Special Economic Zone, 
Decree No. 177/PM and Densavanh Village Border Trade Zone, Decree No. 25/PM) upon accession.   
Lao PDR proposes the following commitment language: 
 "The representative of Lao PDR confirmed that , as of the date of Lao PDR's accession to the 
WTO, the programme that provided investment incentives contingent upon the use of domestic over imported goods for domestic businesse s and foreign-invested enterprises is no 
longer valid.  He noted that Lao PDR as a L east Developed Country is entitled under the 
Article 27.2(a) of the Agreement on Subsid ies and Countervailing Measures.  He also 
confirmed that, by the date of accession, a subs idy notification, in accordance with Article 25 
of the Agreement, would be provided to the Committee on Subsidies and Countervailing 
Measures.  The Working Party took note of these commitments". WT/ACC/LAO/20 
Page 20  
 
  Question 33 
In parts of the Elements of a Draft Working Party Report (paragraphs 25 and 91 to 97),        
Lao PDR states that it continues to seek flexibilities for LDCs pursuant to Article 27 of the Agreement on Subsidies and Countervailing Measu res (SCM Agreement), e.g., in paragraphs 25 
and 93.  In other places Lao PDR explains that it  has already eliminated, or is taking steps to 
eliminate, incentives contingent upon exportatio n or the use of domestic over imported goods, 
such as in paragraphs 93 and 97. 
- Could Lao PDR please confirm that it will  eliminate or modify any WTO-prohibited 
subsidies upon accession to the WTO, includi ng any incentives that are contingent upon 
exportation or the use of domestic over imported goods? 
- Could Lao PDR also commit that once it becomes a WTO Member it will not implement 
any new incentives that are contingent upon exportation or the use of domestic over 
imported goods, consistent with Article 3 of the SCM Agreement? 
 
Answer:
 
Please note that although incentives that are contingent  upon exportation or th e use of domestic over 
imported goods have been eliminated in the new Investment Promotion Law, Lao PDR reiterates its 
need to avail itself to the rights and flexibilities as provided in Article 27, Annex VII of the ASCM with respect to the incentives that ar e contingent upon export performance.  
See also the response to Question 32. Lao PDR proposes the following commitment language: 
 "The representative of Lao PDR confirmed that , as of the date of Lao PDR's accession to the 
WTO, the programme that provided investment incentives contingent upon the use of domestic over imported goods for domestic businesse s and foreign-invested enterprises is no 
longer valid.  He noted that Lao PDR as a Least Developed Country is entitled under 
Article 27.2(a) of the Agreement on Subsidies and Countervailing Measures.  He also 
confirmed that, by the date of accession, a s ubsidy notification, in accordance with Article 25 
of the Agreement, would be provided to the Committee on Subsidies and Countervailing 
Measures.  The Working Party took note of these commitments". 
Question 34 
With respect to paragraph 94, Lao PDR states th at is has formulated an Industry-Handicraft 
Development Plan for certain industries and that  encouragement of key industries and exports 
were priorities in the Sixth Five-Year Deve lopment Plan for the period 2006-2010. 
- Could Lao PDR please explain what indus tries are key priorities in the new 
development plan?  What types of incentives, apart from those contained in the draft subsidies notification, are being contemplated to support the development plan? 
- Could Lao PDR please commit that any new incentives formulated as part of the 
development plan will be notified to the Working Party pursuant to Article 25 of the 
SCM Agreement or to the WTO Membership if implemented after accession.  WT/ACC/LAO/20 
 Page 21 
 
 
  Answer:  
Lao PDR wishes to reiterate that in the new Soci al Economic Development Plan, there is a general 
policy to promote value added industry, especia lly processing industry.  There are no specific 
promotional incentives stipulated in the new plan  other than incentives programme for promotion 
addressed through provisions in the Investment  Promotion Law and its Implementing Decree.  
See also the responses to Questions 32 and 33.  
Lao PDR proposes the following commitment language:  "The representative of Lao PDR confirmed that , as of the date of Lao PDR's accession to the 
WTO, the programme that provided investment incentives contingent upon the use of 
domestic over imported goods for domestic businesse s and foreign-invested enterprises is no 
longer valid.  He noted that Lao PDR as a Least Developed Country is entitled under 
Article 27.2(a) of the Agreement on Subsidies and Countervailing Measures.  He also confirmed that, by the date of accession, a subs idy notification, in accordance with Article 25 
of the Agreement, would be provided to the Committee on Subsidies and Countervailing 
Measures.  The Working Party took note of these commitments." 
Question 35 
With respect to paragraph 97, Lao PDR states that it has established a Committee under the 
Prime Minister's Office to consider alternative measures to promote its industrial policy. 
- Could Lao PDR please explain what types of  alternative measures the Committee is 
considering? 
- Could Lao PDR please commit that any new incentives implemented under this process 
will be notified to the Working Party pursu ant to Article 25 of the SCM Agreement or 
to the WTO Membership if they are implemented after accession? 
Answer
 
See the responses to Questions 32, 33 and 34.  
Question 36 
On the Draft Subsidy Notification (WT/ACC/LAO/19):  A Member would like to commend 
Lao PDR for submitting its draft subsidy notification for the period 2008-2010 to the Working Party.  This Member is impressed by the scope and quality of this draft notification.  At this 
time we would like to seek some additional clarif ications regarding the draft notification from 
Lao PDR. 
Regarding Programme V:  Incentives for invest ments not contingent upon local content or 
export performance requirements - New Investment Promotion Law No. 02/NA. 
- Could Lao PDR please explain when it expects to finalize the implementing decree for 
the New Investment Promotion Law No. 02/NA ("02/NA")?  Could Lao PDR also 
confirm that the decree will be circulated to  the Working Party for review and that any 
incentives provided under the Decree will be reflected in Lao PDR's subsidy notification? 
- Please explain what sectors are "promoted"  under Article 49 of 02/NA.  Are there any 
legal or administrative measures where these sectors are listed or defined? WT/ACC/LAO/20 
Page 22  
 
  - Article 52 of 02/NA describes various customs duty and tax incentives, such as import 
duty exemptions on equipment, parts and ve hicles that are "used for production".  
Could Lao PDR please explain how such exemptions would meet the conditions set out in the SCM Agreement under Annex I, item (i), and Annex II. 
- With regard to Article 58 of 02/NA, could Lao PDR please explain under what 
conditions investors will be entitled to purchase land use rights and provide further 
details regarding the terms of those purchases? 
- Article 59 of 02/NA states that the Government of Lao PDR can propose additional 
incentives to the National A ssembly for approval.  Please explain further the process of 
introducing such additional incentives. 
- With regard to Article 99 of 02/NA, could Lao PDR explain how much longer companies 
will be permitted to continue receiving be nefits from the old incentive programmes 
being rescinded under the new law?  Please al so explain how many companies currently 
benefit from the old incentive programmes. 
Answer:
 
The implementing decree of the Investment Promotion Law is in the process of being finalized. It is 
expected to be adopted by April 2011.  On ce adopted, Lao PDR will submit the Decree to the 
Working Party for review.    Furthermore, Lao PDR confirms that any new incentives provided under 
the new decree will be reflected in Lao PDR's Subsidy Notification.   
The list of promoted sectors is being prepared by the Ministry of Planning and Investment in 
collaboration with line ministries and will be anne xed to the Implementing Decree of Investment 
Promotion.   
The various customs duty and tax in centives, such as import duty exemptions on equipment, parts and 
vehicles that are "used for production" under Article 52 of 02/NA are not collected in the form of duty 
drawback systems.  Lao PDR wishes to reiterate th at the duty drawback system is not imposed in 
Lao PDR.  Therefore, the SCM Agreement Annex I, item (i), and Annex II would not be applied in 
this case.   
There are several conditions for investors to be entitled to purchase the land use rights in Lao PDR.  
These conditions will be clearly stipulated in the Implementing Decree of the new Investment Promotion Law.   
Article 59 of the new Investment Promotion Law is to give policy space for the Government to 
introduce targeted incentives in the future withou t having to change or amend the Investment 
Promotion Law.  The Government of Lao PDR will ensure the WTO-consistency of any new 
incentives to be introduced and will notify WTO Members.   
Article 99 of the new Investment Promotion La w No. 02/NA provides the choice for the existing 
investors to either continue having those benefits  or incentives provided under the previous Laws until 
the expiration of the investment license term, or to  be governed under the new Law.  Please note that 
the existing investors under the old law can continue to maintain those incentives without having to be 
in compliance with the local content requirement.    WT/ACC/LAO/20 
 Page 23 
 
 
  Lao PDR proposes the following commitment language: 
 "The representative of Lao PDR confirmed that , as of the date of Lao PDR's accession to the 
WTO, the programme that provided investment incentives contingent upon the use of domestic over imported goods for domestic businesse s and foreign-invested enterprises is no 
longer valid.  He noted that Lao PDR as a L east Developed Country is entitled under the 
Article 27.2(a) of the Agreement on Subsid ies and Countervailing Measures.  He also 
confirmed that, by the date of accession, a s ubsidy notification, in accordance with Article 25 
of the Agreement, would be provided to the Committee on Subsidies and Countervailing 
Measures.  The Working Party took note of these commitments". 
Question 37 
Regarding Programmes VI and VII:  Incentiv es for investment in the Savan-Seno Special 
Economic Zone - Decree No. 177/PM, and Progra mmes VIII and IX:  Incentives for investment 
in the Densavanh Village Border Trade Zone Decree No. 25/PM. 
- How many industries and companies currently benefit from incentives available under 
these programmes? 
- Please explain why Decree No. 148/PM, Decree of the Prime Minister on Savan-Seno 
Special Economic Zone, was not referenced in the notification for the Savan-Seno programme? 
- Could Lao PDR please explain what progress ha s been made in reviewing and amending 
the local content and export requirements in Decree Nos. 25/PM, 148/PM and 177/PM 
governing the Savan-Seno and Densavanh zones?  Please also provide an estimated time 
line of when the revised legislation governing these zones will be available for Members 
to review. 
Answer:
 
There are 29 companies operating under the Savan- Seno Special Economic Z one, Decree No. 177/PM 
and 14 companies operating under Densavanh Village  Border Trade Zone, Decree No. 25/PM, which 
currently benefit from incentives available under programmes VI & VII and VIII & IX.  
The reason why Decree No. 148/PM was not refere nced to in the notification for Savan-Seno 
programme is because it is a decree that governs the organization, activities and basic policies on the 
Savan-Seno Special Economic Zone.  The Decree No. 148/PM is not related to the provision of any 
investment incentives.  
See also the response to Question 32.  
Lao PDR proposes the following commitment language: 
 "The representative of Lao PDR confirmed that , as of the date of Lao PDR's accession to the 
WTO, the programme that provided investment incentives contingent upon the use of domestic over imported goods for domestic businesse s and foreign-invested enterprises is no 
longer valid.  He noted that Lao PDR as a L east Developed Country is entitled under the 
Article 27.2(a) of the Agreement on Subsid ies and Countervailing Measures.  He also 
confirmed that, by the date of accession, a subs idy notification, in accordance with Article 25 
of the Agreement, would be provided to the Committee on Subsidies and Countervailing 
Measures.  The Working Party took note of these commitments." WT/ACC/LAO/20 
Page 24  
 
  - Technical barriers to trade, standards and certification 
Question 38 Paragraphs 98-105:  Lao PDR has been reporti ng on the good progress made in setting up of 
TBT and SPS enquiry points, which are to be opera tional upon accession.  It would be useful if 
Lao PDR could provide more information regarding the current state of play of the legislation 
establishing these enquiry points and how the finalization of outstanding legislation regarding 
TBT is proceeding.  
Answer: 
 
The Decree No. 363/PM "On Notification and Enquiry of Trade Related Information", ( hereinafter 
referred to as  "Decree No. 363") was adopted on 19 Augus t 2010.  The copy was submitted to the 
WTO Secretariat (WT/ACC/LAO/18/Add.2, or available at www.m-lao.com/ftpd).  The Decree forms 
the basis for the establishment of the SPS and TBT No tification Unit at the Ministry of Industry and 
Commerce, the SPS Enquiry Point at the Ministry of  Agriculture and Forestry, and the TBT Enquiry 
Point at the National Authority for Science a nd Technology.  Detailed addresses are as follows: 
Address of SPS and TBT Notification Unit:  
Foreign Trade Policy Department  
Ministry of Industry and Commerce 
PO Box 4107, Vientiane Capital, Lao PDR 
Tel: 85621-450065 Fax: 85621-450066 Website: www.m-lao.com/ftpd  
Address of SPS Enquiry Point:
 
Department of Planning 
Ministry of Agriculture and Forestry  
PO Box 811, Vientiane Capital, Lao PDR Tel: 85621-415363 Fax: 85621-412343 
Address of TBT Enquiry Point:
 
Department of Intellectual Propert y Standardization and Metrology 
National Authority for Science and Technology PO Box 2279, Vientiane Capital, Lao PDR Tel/Fax: 85621-243405  
To further strengthen the coordination and info rmation exchange among SPS and TBT Notification 
Unit, SPS Enquiry Point and TBT Enquiry Point, a number of regulations are being developed.  
The Ministry of Industry and Commerce adopted the Decision No. 0471/MOIC on SPS and TBT 
Notification Unit,  dated 9 March 2011 (WT/ACC/LAO/18/Add.2, or available at  www.m-lao.com/ftpd).  The Ministry of Agriculture and Forestry is finalizing the Regulation on SPS Enquiry Point, and the National Authority for Science and Technology is also finalizing the 
Regulation on TBT Enquiry Point. See the timeline in the revised SPS and TBT Action Plans 
(WT/ACC/LAO/13/Rev.4 and WT/ACC/LAO/14/Rev.4).   WT/ACC/LAO/20 
 Page 25 
 
 
  In parallel to legislative developments, Lao PDR is also conducting capacity building programs and a 
public awareness campaign to ensure the effective operation of the notification and enquiry points 
upon accession through the support of the Asian Development Bank (ADB), USAID, and Trade 
Development Facility (TDF).  The TDF is a mu lti-donor trust fund supported by the World Bank, 
Australia and the European Union.  Technical as sistances are supporting various activities including 
for developing regulations, devel oping operational manuals of the Enquiry Points and the Notification 
Unit, training staff, developing websites for shar ing legal information of SPS and TBT, and also 
provide necessary equipment.  To this effect, Lao PDR wishes the communication between SPS and 
TBT related competent authorities and business sector both inside and outside the country in SPS and 
TBT practices will be more effective and transparent. 
See the response to Question 40 with regard to progress on adopting regulations to implement the 
Law on Standardization.  See also the timeline in the revised TBT Action Plan (WT/ACC/LAO/14/Rev.4) on legislative developmen ts to bring the legal framework into full 
compliance with the TBT Agreement.  
Question 39 
Paragraphs 98-105:  As regards  policy-making in the TBT area, could Lao PDR elaborate on 
the process of consultations with stakeholders,  and confirm whether foreign stakeholders do 
also participate in these consultations, and if so, how? 
Answer:
 
The Law on Standardization, Articles 21 and 29, pr ovides the provisions for adopting standards and 
technical regulations.  The Standard Council was established by virtue of the Regulation 
No. 235/PMO-NAST on the Organization and Activ ities of National Standa rd Council, dated 
3 February 2010.  The Central Technical Committee  was also established according to the Regulation 
on Central Technical Committee to provide techni cal support to the Standard Council on adopting 
standards and technical regulations.  See al so paragraph 101 of document WT/ACC/SPEC/LAO/4.   
Therefore, foreign stakeholders can participate in  the consultations.  The consultative mechanism is 
done through the Standard Council and Central Tec hnical Committee.  The establishment of SPS and 
TBT Notification Unit and TBT Enquiry Point will also  be supportive of this mechanism.  According 
to Article 3.4 of the Decree No. 363/PM "On Notifi cation and Enquiry of Trade Related Information", 
dated 19 August 2010,  before adopting technical barriers to trade meas ures all interested parties both 
domestic and foreign are allowed w ithin a reasonable time (60 days) for submission of comments on 
the draft measures.  The Decree also provides th at all adopted SPS and TBT regulations shall be 
published 180 days before their enforcem ents, except in urgent circumstances. 
See also the response to Question 38.   
Question 40 
The Law on Standardization itself has references to  all of the elements relevant to implementing 
the TBT Agreement, though some references are very brief or vague, and there are some overall 
coherence issues.  How the Law is implemented w ill be of key concern, and we look forward to 
seeing the implementing measures.  We understand th at there is also the "Re-assessment of the 
Institutional, Legal and Regulatory Framewor k" work underway, which could contribute to 
overall coherence. WT/ACC/LAO/20 
Page 26  
 
  Answer:
 
Following the adoption of the Law on Standardi zation, Lao PDR has embarked upon substantive 
implementation of the TBT Agreement.  The key legislative developments include:   
- Regulation on the Quality Inspection of Goods, adopted in 2009; 
- Regulation on Basic Principles in Application of Sanitary and Technical Measures in Food 
Safety Management, adopted in 2009;  
- Regulation on the Organization and Activities of  the National Standard Council, adopted in 
2010; 
- Regulation on Labelling of Pre-Packaged Food, adopted in 2009;  
- Regulation on Central Technical Committee, adopted in 2010; and  
- Draft Decree on the implementation of the La w on Standardization, completed by NAST in 
January 2011 and is expected to be adop ted by Prime Minister by December 2011. 
In addition, the Law on Metrology was adopted by National Assembly in the December 2010.  
The Checklist of Illustrative TBT Issues (WT/ACC/L AO/6/Rev.2) takes stock of the progress that 
Lao PDR has made in bringing its legal framework  into compliance with the TBT Agreement in 
particular points:  3) Establishment and operati on of the TBT Enquiry Point; 4) Identification of 
authority responsible for notifications, publicatio ns and other internal procedures to ensure 
transparency obligations; 5) Development and app lication of technical regulations and conformity 
assessment procedures; and 6) Development and a pplication of standards and conformity assessment 
procedures.  
Lao PDR is thankful for technical assistance r eceived from development partners, including ADB, 
FAO, EU, UNIDO, WHO, USAID as well as under the multi donor trust fund (Trade Development 
Facility:  TDF).  See also details in the revised TBT Action Plan (WT/ACC/LAO/14/Rev.4).  
Re-assessment of the Institutional, Legal and Re gulatory Framework for TBT is being undertaken 
under the TDF.  The key objective is to assess gaps a nd overlaps in legal, regulatory and institutional 
capacity in the areas of technical regulations, st andards and conformity assessment as well as to 
provide recommendations to ensure full and eff ective implementation of the TBT Agreement.  
The re-assessment was launched in January 2011 a nd is expected to be completed in June 2011. 
Question 41 
We understand that one implementing measure under development is the "Draft Decree on the 
SPS and TBT Notification Centre and Enquiry Poin ts".  With respect to this Implementing 
Decree, we would like to stress that effective operation of the Enquiry Point is critical to 
ensuring that producers and manufacturers in Lao PDR have access to information on the 
technical regulations, standards and conformity assessment procedures requi red in existing and 
prospective export markets. 
Answer:  
Lao PDR agrees with Members' comments and is fully  aware of the importance for exporters to have 
access to information on those issues.  To en sure speedy implementation, Lao PDR is seeking 
technical assistance from donors (USAID, Trade Development Facility and ADB).   
See also the progress of establishing the SPS and TBT Notification Unit and TBT Enquiry Point in the 
response to Question 38.    WT/ACC/LAO/20 
 Page 27 
 
 
  Question 42 
With respect to Lao PDR's TBT checklist, Section 5(e) stated that Lao PDR wanted Technical 
Assistance to be able to implement.  We would like to clarify that technical assistance is not necessary to be able to system atically consider the equivalence of technical regulations of other 
Members.  That provision in the TBT Agreement can be useful in certain priority sectors 
(for example, "organic" agricultural produce) in which an investment in technical capacity to 
understand the regulations of significant trading pa rtners can be a way to help catalyse trade by 
bringing down the costs of compliance.  In other words, it is not necessary to have any 
"upfront" or "overall" capacity with respect to  implementing the equivalence provisions of the 
TBT Agreement. 
Answer:
 
Lao PDR agrees with Members' comments and is maki ng the best effort to gradually implement this 
provision due to the lack of national capacity.  Lao PDR has no interest to postpone the implementation of that provision. 
Lao PDR has been actively participated in the re gional standards and conformance under the ASEAN 
Consultative Committee on Standards and Quality  (ACCSQ) aiming at harmonizing national 
standards with international standards and impl ement mutual recognition arrangements (MRAs) on 
conformity assessment, including recognising test reports issued by testing laboratories which are already accredited by National Accreditation Bodies in ASEAN that are signatories to the mutual 
recognition arrangements of International Laborator y Accreditation Cooperation.  Lao PDR joined 
ASEAN MRA for Electrical and Electronic Equipmen t in 2002 and is working toward harmonization 
of regulatory regime in electrical and electronic sector by 2010.  
The National Authority for Science and Technology (NAST) is in the process of adopting the IEC 
International Standards and to establish the Lao National Accreditation Bureau (LNAB), in 
accordance with international standard ISO/IEC 17011,  which will be laid out in draft implementing 
Decree of Standardization Law.  La o PDR's long-term goal is to partic ipate in MRAs of International 
Laboratory Accreditation Cooperation (ILAC) and Inte rnational Accreditation Forum (IAF), at which 
time Lao PDR will accept conformity assessment pro cedures of exporting member countries that also 
participate in the MRAs.  
Question 43 
We recommend that Lao PDR consider, to the exte nt possible and if it is not already doing so, 
participating in the Asia Pacific Metrology Pr ogram (APMP), the Asia Pacific Legal Metrology 
Program (APLMF), and the Pacific Area Standards Congress (PASC).  Our experience 
indicates that long-term cooperative efforts and information exchange among specialists offer a 
critical venue for helping developing country ex perts build the domestic knowledge base needed 
to evaluate and prioritize their country's ow n needs regarding technical infrastructure 
development.  These regional organizations can allow Lao PDR's national specialists to have 
access to a variety of viewpoints and independent  technical assessments in an environment of 
professional exchange among experts. WT/ACC/LAO/20 
Page 28  
 
  Answer:
 
Lao PDR is a correspondent member of the Asia Pacific Legal Metrology Forum (APLMF).  It has 
benefited in terms of capacity bu ilding through attendance in semi nars, training and working group 
meetings organized by the APLMF.  
Lao PDR has intention to join PASC, but lacks ne cessary human and financial resources to do so.  
Lao PDR is still a Least Developed Country with limited capacity and budget, and therefore joining 
any regional or international body is accompanie d by human and financial implications which we 
have to be selective. 
- Sanitary and phytosanitary measures 
Question 44 
Paragraphs 106-116:  A Member welcomes Lao PDR' s efforts to align its regulations with the 
provisions of the SPS Agreement, including the tr ansparency provisions of the Agreement.   
With the provision of technical assistance, Lao PDR has confirmed that it expects to be in full 
compliance with the SPS Agreement by 2012 pr ovided technical assistance continues to be 
provided in this area.  This Member is active ly providing this assistance-as Lao PDR has 
acknowledged it in the checklist- and we are confident that this assistance will enable Lao PDR 
to meet its accession obligations in terms of SPS requirements.  It is important to recall that 
Lao PDR should implement the new Regulations swiftly after their adoption.  We invite Lao PDR to continue sending regular updates of the checklist of illustrative SPS issues. 
Answer:
 
Decree No. 363/PM "On Notification and Enquiry of  Trade Related Information", (hereinafter 
referred to as "Decree No. 363") was adopted on 19 A ugust 2010.  The copy has been submitted to the 
WTO Secretariat (WT/ACC/LAO/18/Add.2, or available at www.m-lao.com/ftpd).  The Decree forms the basis for the establishment of the SPS and TBT No tification Unit at the Ministry of Industry and 
Commerce, the SPS Enquiry Point at the Ministry of  Agriculture and Forestry, and the TBT Enquiry 
Point at the National Authority for Science a nd Technology.  Detailed addresses are as follows: 
Address of SPS and TBT Notification Unit:
 
Foreign Trade Policy Department  
Ministry of Industry and Commerce PO Box 4107, Vientiane Capital, Lao PDR Tel: 85621-450065 Fax: 85621-450066 
Website: www.m-lao.com/ftpd  
Address of SPS Enquiry Point:
 
Department of Planning 
Ministry of Agriculture and Forestry  PO Box 811, Vientiane Capital, Lao PDR 
Tel: 85621-415363 
Fax: 85621-412343  WT/ACC/LAO/20 
 Page 29 
 
 
  Address of TBT Enquiry Point:  
Department of Intellectual Propert y Standardization and Metrology 
National Authority for Science and Technology PO Box 2279, Vientiane Capital, Lao PDR Tel/Fax: 85621-243405  
To further strengthen the coordination and info rmation exchange among SPS and TBT Notification 
Unit, SPS Enquiry Point and TBT Enquiry Point, a number of regulations are being developed.  
The Ministry of Industry and Commerce adopted the Decision No. 0471/MOIC on SPS and TBT Notification Unit, dated 9 March 2011 (WT/ ACC/LAO/18/Add.2, or available at  
www.m-lao.com/ftpd).  The Ministry of Agriculture and Forestry is finalizing the Regulation on SPS 
Enquiry Point, and the National Authority for Science and Technology is also finalizing the 
Regulation on TBT Enquiry Point.  See the ti meline in the revised SPS and TBT Action Plans 
(WT/ACC/LAO/13/Rev.4 and WT/ACC/LAO/14/Rev.4).   
In parallel to legislative development, Lao PDR is also conducting capacity building programmes and 
public awareness campaign to ensure the effective operation of the notification and enquiry points 
upon accession through the support of the Asian Deve lopment Bank, the USAID, and a multi-donor 
trust fund TDF.  Technical assistances suppor ting various activities including for developing 
regulations and operational manuals of the Enquiry Points and the Notification Unit, training staff, 
developing websites for sharing le gal information of SPS and TBT measures, and also providing 
necessary equipment.  To this effect, Lao PD R wishes that the communications between SPS and 
TBT related competent authorities and business sector  both inside and outside the country will be 
more effective and transparent. 
Lao PDR will ensure that its lega l framework on food safety, animal and plant health is in compliance 
with the SPS Agreement by 31 December 2012.  Full implementation of the SPS Agreement is to be 
achieved by 31 December 2014, taking into consid eration of national capacity and the provision of 
technical assistance mentioned above. 
Please see the updated Checklist of Illustrative SPS in document WT/ACC/LAO/6/Rev.2.  See also 
the timeline for future legislative programmes in the revised SPS Action Plan (WT/ACC/LAO/13/Rev.4).  
Question 45 
Paragraphs 106-116:  We note that the Food  Law has been supplemented by Regulation 
No. 518/MOH in March 2009.  As regards Lao PDR's action plan, we take note about 
Lao PDR's intention to promulgate new decrees or reg ulations on food control, food additives, 
inspection of live animals (import and transit), animal quarantine, zoonotic disease control, 
plant inspection and certification, update the Re gulation on Plant Quarantine, and complete 
work on the designation of pest and disease free areas.  In this regard, we invite Lao PDR to 
provide an update of the expected timefr ames for completion of this legislation. WT/ACC/LAO/20 
Page 30  
 
  Answer:
 
Lao PDR is making good progress in implementing th e SPS Agreement thanks to technical assistance 
provided by development partners.  The le gislative developments are as follows:   
Food safety  
To implement the 2004 Food Law, the following le gislation has been adopted and developed:  
- National Food Safety Policy of Lao PDR No. 028/PM, adopted on 3 February 2009;  
- Ministerial Regulation on Basic Principles in the Application of Sanitary and Technical 
Measures for Food Safety Management No . 518/MoH, adopted on 18 March 2009;  
- Regulation on Food Additives, being drafted by MoH and to be adopted in March 2011; and  
- Regulation on Food Inspection, being drafted by MoH and to be adopted by December 2011.  
Animal health  
To implement the Law on Livestock and Veterinary Matters, and the Law on Fisheries, the following 
legislation has been adopted and developed:   
- Decree on Inspection of Live Animals on Import and Transit (amendment), draft prepared by 
MAF in January 2011 and to be adopted by December 2011; 
- Decree on Animal Epidemic Diseases (amendment), draft prepared by MAF and to be 
adopted by December 2011; and  
- Ministerial Decision on Animal Slaughtering a nd Animal Product Inspection, draft prepared 
by MAF and to be adopted in March 2011.  
Plant health  
To implement the Law on Plant Protection, the following legislation has been developed:  
- Decree on Implementing on Plant Protection Law, draft being prepared by MAF and to be 
adopted by December 2011; and  
- Instruction on Principles in the Appli cation of SPS Measures in Plant and Animal 
Administration, draft being prepared by MA F and to be adopted by December 2011.   
The newly adopted legislations are being transl ated in English and will be provided to the 
WTO Secretariat when completed.  For more de tailed information, see the revised SPS Action Plan 
(WT/ACC/LAO/13/Rev.4). 
Question 46 
In response to Question 70 of WT/ACC/LAO/18, Lao PDR mentions that "regulations on food 
safety and animal health took into considerati on the WTO requirements that standards should 
be based on scientific reasons and necessity  with an equivalence if standards and  
non-discrimination".   
What does that mean and can Lao PDR please provide an example?  WT/ACC/LAO/20 
 Page 31 
 
 
  Answer:  
All standards and technical regulations on food safet y, animal and plant health such as standards and 
regulations for food additives, cont aminants, toxins, control and mana gement of animal deceases and 
pests used in Lao PDR conform to relevant Codex,  OIE and IPPC standards.  On food safety, the 
relevant provisions of SPS Agreem ent have been included in nationa l regulations (refer to document 
WT/ACC/LAO/6/Rev.2) on animal and plant health , the incorporation of those requirements of 
SPS Agreement into national regulations are un der process and expected to be completed 
by 2011.  Please see the updated SPS Action Pl an (WT/ACC/LAO/13/Rev.4) and the Checklist 
(WT/ACC/LAO/6/Rev.2).  
Question 47 
We request that Lao PDR please submit a copy of its national policy on food safety and its 
regulation "Basic Principles in Application of  Sanitary and Technical Measures" to the 
Working Party for review.  What does the latter reg ulation seek to achieve and does it apply to 
animal and plant health as well? 
Answer:  
Regulation No. 518/MoH on Basic Principles in the Application of Sanitary and Technical Measures 
is to implement the Food Law of 2004 in full compliance with the SPS Agreement by requiring all food safety related measures to be in compliance wi th the requirements of necessity, scientific-basis, 
equivalence, harmonization, transparency, risk assessment and non-discrimination. 
Regulation No. 518/MoH on Basic Principles in App lication of Sanitary a nd Technical Measures does 
not cover animal or plant health (A rticle 2 scope of application).   
See also the revised SPS Action Plan (WT/ACC/LAO/13/Rev.4) on the application of the SPS 
principles in plant and animal health.  The nationa l policy on food safety and the Basic Principles in 
Application of Sanitary and Technical Measures ha ve already been submitted to the WTO Secretariat 
(WT/ACC/LAO/17/Add.1, or available at www.m-lao.com/ftpd).  
Question 48 
Can Lao PDR please explain what its plans are for food inspection regulations? 
- Will Lao PDR have different domestic and import plans? 
- How will Lao PDR know where products are coming from and if they are safe? 
- How often are domestic products inspected? 
Answer:
 
Lao PDR is drafting a Regulation defining the pr ocedures for food safety inspection for import and 
domestic production, basing on Codex standards, guidelines and recommendations, and taking into 
account non-discrimination principle between domestic and foreign suppliers and the requirements of 
Article 8 and Annex C of the SPS Agreement.  This regulation is expected to be adopted during 2011. 
For assuring safe food entered to Lao PDR, the follo wing documents are required to be issued by 
competent authority of exporting country:  COA, HC, GMP HACCP and samples for testing.  
Lao PDR is receiving technical assistance from FAO, WHO and UNIDO for developing legal 
framework, strengthening capacity building and equi pping laboratory to be able to implement the 
SPS Agreement.  WT/ACC/LAO/20 
Page 32  
 
  Due to limited staff and financial resource, food in spection is normally conducted in corresponding to 
availability of alert information - requ ested by consumer or other sources. 
Question 49 
In Lao PDR's SPS Action Plan, document WT/ACC/LAO/13/Rev.3, Lao PDR states that 
"priority CODEX standards have been selected. "  What standards is Lao PDR talking about 
and what were the criteria used to select "priorities"? 
Answer:
 
For imports, Lao PDR accepts all international CODEX standards.  It is Lao PDR's policy to apply the 
same CODEX standards for domestic products.  Ho wever, due to limited resources and capacity 
constraints to apply all those standards interna lly, Lao PDR had to select priority list of essential 
standards for the purposes of consumer pr otection and domestic production management. 
The prioritization of standards applies only to local production.   The Food Law of 2004 and Regulation No. 518/MoH on Basic Principles in the Application of 
Sanitary and Technical Measures provide that all food safety related measures to be in compliance 
with the SPS Agreement, in particular the requi rements of necessity, scientific-basis, equivalence, 
harmonization, transparency, risk assessment and non-discrimination. 
Question 50 
Without the creation of an independent food laboratory, how does L ao PDR ensure decisions 
are science based?  Does Lao PDR work  with other laboratories?   
Answer:
 
Lao PDR needs additional laboratory capacity to monitor and certify whether import, domestic and 
export productions are following international sta ndards.  Food and Drug Quality Control Center 
(FDQCC) is the food testing laboratory under Ministry of Health.  It has been working with the National Association of Testing Authorities, Aust ralia (NATA) in conducting an assessment on the 
accreditation of ISO 17025 since November 2009.  The assessment process is on-going under the 
support of UNIDO, and it has also been working wi th ASEAN Reference Laboratories (ARL) such as 
participating in Proficiency testing (PT) test with Quatest 3 which is ARL for microbiology.  
To follow-up that activity, FDQCC has worked with  Thailand and Sri Lanka counterparts to provide 
training for staff on microbiology testing and analysis for food. For testing that cannot be executed in Lao PDR, samples are sent to Thailand's laboratories (Medical Science Department of MoH and Department of Agriculture of Ministry of Agricu lture) e.g. for Ochratoxine, and Vietnam laboratory 
for Melamine testing.  
 
Question 51 
How does Lao PDR communicate with domestic and foreign agricultural producers about SPS 
practices?  WT/ACC/LAO/20 
 Page 33 
 
 
  Answer:  
The Lao PDR communicates with domestic and foreign agricultural producers on SPS practices 
through seminars, workshops and media.  Lao PDR needs to improve such communication to be more 
efficient and comply with the transparency principle of SPS Agreement.   
For this purpose, Lao PDR is establishing the SPS and TBT Notification Unit and SPS Enquiry Point 
pursuant to the Decree No. 363/PM on Notification and Enquiry of Trade Related Information dated 
19 August 2010.  According to Article 3.4 of the Decree No. 363/PM "On Notification and Enquiry of 
Trade Related Information", before adopting SPS me asures all interested parties both domestic and 
foreign are allowed within a reasonable time ( 60 days) for submission of comments on the draft 
measures.  The Decree also provides that all adopted SPS measures shall be published 180 days 
before their enforcements, excep t in urgent circumstances.   
See also the response to Question 44.  
Question 52 
With respect to issues related to animal health: - Is Lao PDR a member of the OIE?  What is  Lao PDR's policy on BSE?  Does Lao PDR 
allow the use of pathogen reduction trea tments on poultry to reduce salmonella 
contamination, and if so, are there any restrictions on which pathogen reduction 
treatments are used?  Does Lao PDR have a to lerance policy for salmonella, if so, please 
describe it. 
- How will an exporter know that a live animal  has been subject to quarantine measures 
in Lao PDR?  Where will the test results come from?  Does Lao PDR's law/regulation 
allow for equivalence and regionalization determinations? 
Answer:
 
Lao PDR has been a member of OIE since 1954.  Lao PDR has general polic y on zoonosis; however, 
specific policy on BSE does not yet exist in the country.  The Lao disease control policies are 
generally developed on a case by case basis.  If th ere is an outbreak of BSE, Lao PDR will follow the 
OIE recommendations and guidelines in taking B SE quarantine measures and/or imposing trade 
restrictions. 
Lao PDR allows the use of pathogen reduction tr eatment on poultry, including the OIE guidance on 
reducing contamination by salmonella.  At present, there are no specific "restrictions on which pathogen reduction treatments are used".  Howe ver, Lao PDR generally follows OIE recommended 
practices to minimize salmonell a caused food poisoning in poultry m eat and egg products.  Thus so 
far, Lao PDR does not have an official tolerance policy for salmonella.   
Lao PDR is planning to introduce a BSE related regulation as developed by the Lao PDR Committee 
of Contagious Diseases, which should follow the guidance of the OIE regarding BSE.  
Due to financial and human resources limitation, cu rrently Lao PDR does not have animal quarantine 
facilities at the border checkpoints.  At the chec kpoints, importer is mainly required to provide 
relevant documents and subject to physical insp ection in accordance with given information.  
Additionally, the quarantine is normally done by  exporting countries.  Law No. 03/NA on Livestock 
Production and Veterinary Matters (Articles 45, 46 and 47) defines general provisions on animal 
quarantine.  To further bring the legal framewo rk on animal health into compliance with the 
SPS Agreement, the Decree "On Inspection of Live Animals on Import and Transit" is WT/ACC/LAO/20 
Page 34  
 
  being amended.  Basically, transparency requirement s are to be incorporated into this Decree which 
requires all proposed regulations to be notified and published before their adoption and enforcement. 
The test results can be obtained at the National Animal Disease Diagnostic Laboratory at National 
Animal Health Center (NAHC). 
Lao PDR is in process of incorporating equivalence c oncept into domestic regulation.  To this effect, 
draft Instruction on the Principles in the App lication of SPS Measures in Plant and Animal 
Administration is being prepared and expected to be adopted by December 2011.  See also the revised SPS Action Plan.  
On regionalization determination, Lao PDR stri ctly follows OIE's standards, guidelines and 
recommendations.  Once there is announcement made by OIE on specific diseas e or disease free area, 
Lao PDR automatically adapts its regulation and implementation corresponding to the OIE 
announcement.  
Question 53 
With respect to issues related to plant health: - Does Lao PDR follow IPPC guidelines? 
- In document WT/ACC/LAO/14/Rev.3, it is explained that Lao PDR is following 
"practices of neighbouring countries".  What  does that mean and which countries is 
Lao PDR following? 
- What is Lao PDR looking for in its inspections of plants?  How often is Lao PDR testing 
domestic and imported plants and what is Lao PDR testing for? 
- Next year, Lao PDR is planning to draft a regulation on Plant Inspection and 
Certification - what will Lao PDR require to be certified? 
- What does Lao PDR's regulation on pestic ide management cover?  How does Lao PDR 
test for MRL residues?  Does Lao PDR establish its own MRLs or follow CODEX standards?  What happens when you find an MRL violation on a specific commodity?  What is your enforcement programme? 
- Lao PDR's enquiry points will be operational upon accession.  How does a trading 
partner currently learn of Lao PDR's regulatory requirements? 
Answer:
 
Lao PDR is the member of IPPC (G/SPS/49/Rev.9); therefore it follows IPPC guidelines. There is no "practices of neighbouring countries" wording in WT/ACC/LAO/14/Rev.3.   The inspection of plants is conducted for different reas ons, inter alia, to look for the regulated pest as 
attached in the Plant Protection La w to avoid their entrances, to look  for pesticides, mycotoxin etc. 
and the inspection is being conducted in complia nce with IPPC guidelines, in particular, ISPM 
No. 15; 20; 23 and 25.  The Plant Protection Law is being translated into English and will be 
submitted to the WTO Secretariat.  Plant inspectio n requires analysing the quality of plants, on the 
existence of any chemical residues, pests and deceas es in order to ensure safety for plant health and 
consumption.  Lao PDR does not apply plant inspec tion requirement to imported plants however an 
importer has to provide plant health certificate is sued by relevant competent body of exporting 
country. 
Lao PDR is promoting organic plant production theref ore there is a need for certifying this process.    WT/ACC/LAO/20 
 Page 35 
 
 
  Lao PDR's Regulation on Pesticid e Management was adopted in 2010 with technical assistance from 
the TDF.  The regulation covers:  1) registration of  pesticide; 2) management of production, import, 
export, distribution, transportation, storage and trans it of pesticide; 3) use and disposal of pesticides; 
4) packaging, labelling and advertising of pesticides; and 5) management and inspection of pesticide.   
On the MRLs, Lao PDR follows CODEX standard and the adoption process is completed.  See the 
revised SPS Action Plan.   
Lao PDR is establishing the SPS and TBT Notifica tion Unit and SPS Enquiry Point pursuant to the 
Decree on Notification and Enquiry of Trade Relate d Information No. 363/PM dated 19 August 2010.  
This would provide the mechanism for trading partners to learn of Lao PDR's SPS regulatory 
requirements.  The Address of SPS Enquiry Point is:   
Department of Planning:  
Ministry of Agriculture and Forestry  
PO Box 811, Vientiane Capital, Lao PDR Tel: 85621-415363 Fax: 85621-412343 
The Department of Livestock Production and Fisheries,  Department of Agriculture and Department of 
Food and Drugs are mandated to support the func tions of the SPS Enquiry Point in providing 
responses for all enquiries as requested by trading partners.   
See also the response to Question 44.  
Question 54 
With regard to the issue of "nearly expired food" discussed in Question 71 of 
WT/ACC/LAO/18, it would appear that this measure goes beyond CODEX and appears to be 
mandatory. 
- Is that correct? 
- What is the scientific justification for this measure and how do you determine one date 
for all perishable products? 
Answer:
 
Lao PDR follows labelling requirements provide d by CODEX standards, as stipulated under 
Regulation No. 519/MoH on Labelling of Pre-packag ed Food.  This implements the Food Law 
No. 04/NA, dated 15 May 2004, which provides that th e term expiry date or use-by date which is 
defined as the end of the estimated period under wh ich any stated storage conditions after which the 
product will not have the attributes expected by consumers.   
The "nearly expired food" concept is only used to prevent nearly expired packaged food which is 
often imported to Lao PDR at discounted prices and which often expires by the time that they are consumed in Lao PDR and causes health hazards.  The definition of nearly expired packaged food 
needs to be improved.  Lao PDR is in the pro cess of reviewing the definition and will adapt its 
regulation.   WT/ACC/LAO/20 
Page 36  
 
  Question 55 
Concerning Lao PDR's National Policy on Food Safety, discussed in Question 72 of 
WT/ACC/LAO/18:   
- Will Lao PDR be publishing its draft risk assessments to ensure stakeholder 
participation? 
- How does Lao PDR communicate risk to stakeholders? 
Answer:
 
Lao PDR has not yet started the preparation for risk assessment methodology.  Currently the 
appropriate technical assistance is being identified by Lao PDR to elaborate this methodology to be 
submitted to the existing technical working group  on food safety which includes private sector 
representatives.   
Lao PDR will communicate the risk to stakeholders  through a rapid alert system within ASEAN as 
well as the INFOSAN network of the WHO.  Th e establishment of the SPS and TBT Notification 
Unit and the SPS Enquiry Point will also be supportive of this work.   
Question 56 
What is a "reasonable risk assessment framework", discussed in Question 73 of 
WT/ACC/LAO/18? 
- Which development partners are working with you on risk characterization? 
- Does the precautionary principal and /o r consumer opinion play a role in 
"risk characterization?" 
Answer:  
See the response to Question 55.   
Recently, Lao PDR has conducted a series of trainings  on risk analysis and started doing exercise on 
risk profiles development and proposed management  options for managers with assistance of FAO 
experts (2009-2010):  FAO-NZAID funded project on  Improving Food Safety in Lao PDR, Viet Nam 
and Cambodia. 
Question 57 Lao PDR's response to Question 74 of WT/ACC/LAO/18 states that Lao PDR rejects standards 
that fail to meet CODEX standards, but then explains that CODEX is the minimum required 
standard. 
- What is Lao PDR's policy? 
- If a country imposes a different standard than CODEX, what is Lao PDR's general 
policy?  WT/ACC/LAO/20 
 Page 37 
 
 
  Answer:  
Lao PDR general policy follows the recommendati ons of international standards and guidelines 
(Food Law, Article 13).  
If a country imposes a standard which results in a hi gher level of sanitary or phytosanitary protection 
than would be achieved by CODEX standards, Lao PDR will accept such standards.  In case, a 
country adopts different standards than CODEX it will  have to provide the scientific justification.  
- Agricultural policies 
Question 58 
We note that in its most recent market acces s offer, Lao PDR has flagged several agriculture 
products (i.e., meat, poultry, vegetable, and ri ce) with a Special Safeguard (SSG) indicator. 
- Please explain why Lao PDR is proposing to use SSG measures for these products? 
- Historically, has Lao PDR ha d to raise tariffs or implement other measures to restrict 
imports of these types of products?  Please explain. 
Answer:  
Previously, Lao PDR was maintaining non-tari ffs barriers on these products through quantitative 
restrictions such as prohibition or licensing.  Therefore, once Lao PDR liberalizes its trade regime 
under the WTO, Lao PDR applies SSG measures for some products in order to limit the unforeseen 
risk and secure the adverse effects on those vulnerabl e poor farmers, who are more than 30 per cent of 
population living under the poverty line.   
(a) Imports 
Question 59 
Paragraph 131 explains that rice was subject to non-automatic import licensing requirements.  
In addition, "According to Notification No. 0100/MOC each province was required to prepare an annual plan to balance the demand for rice" and that in cases of rice being in short supply, 
"the provincial governor could approve the importation of rice". 
- We note inconsistency in this section with the explanation given for non-automatic 
import licensing on rice in paragraph 68 (and Table 9). 
- What steps is Lao PDR planning to take to  ensure that measures pertaining to rice are 
consistent with the requirements of Article 4.2 of the Agreement on Agriculture? 
Answer:
 
See the response to Question 4. 
Question 60 
We note that Lao PDR has provided notifications of domestic support and export subsidies for 
the period 2001-2003.  We encourage Lao PDR to prepare notifications of expenditure for a more recent reporting period. WT/ACC/LAO/20 
Page 38  
 
  Answer:
 
Lao PDR takes note of Members' encouragement for updating the notifications of domestic support 
and export subsidies in the agricultural sector (WT/ACC/SPEC/LAO/1/Rev.1)  which indicates that 
that all of its domestic support was well below the 10 per cent de minimis  level.  The situation has not 
been changed since then.  Lao PDR will subm it the updated notifications upon the accession. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME - GENERAL - Fees and taxes Question 61 We note that the first sentence of paragraph 148 of the Elements of a Draft Working Party 
Report requires editing. 
Answer:
 
Lao PDR takes note of Members' comments and advises the WTO Secretariat to reflect change 
accordingly. 
 
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights Question 62 With respect to paragraph 153 of the Elements of a Draft Working Party Report: We request that Lao PDR provide additional information on how collective ownership would 
work for traditional cultural expressions. 
Answer:
 
The protection of traditional cultural expressions under  Lao PDR's IP Law aims to the preservation of 
traditional values of Lao culture and the moral ri ghts of the community over these expressions.  
Lao PDR plans to elaborate more on collective ownership through the Implementing Decree and 
regulations of the IP Law.  See the timeline in the revised TRIPS Action Plan 
(WT/ACC/LAO/15/Rev.4).   WT/ACC/LAO/20 
 Page 39 
 
 
  Question 63 
We note Lao PDR's answer to Question 83 of WT/ACC/LAO/18.  However, we remain 
concerned over the language in Article 2 which requires that intellectual property have "economic value and benefit in social develo pment".  Although we understand that other 
provisions in the law do not contain this qualifying language, having such language in the 
General Provisions of the Law on Intellectual Property might be read as limiting further 
descriptions of intellectual property found elsewhere in the law. 
Because of this inconsistency, we ask that this  qualifying language be struck from Article 2. 
Answer:
 
Lao PDR takes note of Members' comments and woul d like to reemphasise that this provision is not 
intended to limit the rights of legitimate IPR holde rs (Articles 13, 14, 15, 16 of the IP Law). 
Question 64 
We note Lao PDR's answer to Question 84 of WT/ACC/LAO/18. - However, we ask that inclusion of th e language "whatever manner or mode of 
expression" be added to Article 3.25 directly  and not through the Implementing Decree, 
as explained. 
- We remain concerned that the lack of this  language could extend copyright protection to 
ideas or other works that are not expressed, and clarification through the Implementing 
Decree may be insufficient as it would limit the protections of the law and lead to confusing interpretations. 
- For purposes of accession and implementation  of Article 9(2) of the TRIPS Agreement, 
we suggest clarification in Lao PDR's intellectual property law. 
Answer:
 
By requiring a mode of expression, protection of IPR would only extend to works that are expressed. 
However, Lao PDR takes note of Members' commen ts and will clarify this language in the draft 
Decree implementing the IP Law and will also take this into account in revising the IP Law.  
See the timeline in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4). 
Question 65 
We note Lao PDR's answer to Question 85 of WT/ACC/LAO/18.  However, we remain 
concerned over whether Article 3.26 covers both encrypted and unencrypted satellite 
programmes as written.  Therefore, we request revis ion of Article 3.26 to specify both encrypted 
and unencrypted programmes, as well as Article 78(3) and (4) of the draft law. 
Answer:  
Lao PDR takes note of Members' comments and will ta ke this into account in revising the Article 3.26 
of IP Law with respect to both encrypted and unen crypted satellite programmes.  See the timeline in 
the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  WT/ACC/LAO/20 
Page 40  
 
  Question 66 
We note Lao PDR's answer to Question 86 of WT /ACC/LAO/18.  However, as it is currently 
worded, the language in Articles 3.28 and 75 of  the Law on Intellectual Property could be read 
to mean that the acts of adaptation, modification, transformation, compilation, interpretation, elucidation of works apply only to the translated works mentioned first in Articles 3.28 and 75. 
In order to clarify this possible misinterpre tation, we suggest the following revision: 
"Derivative works means the translation, adaptation, modification, transformation, interpretation, elucidation of a copyrighted work." 
Derivative works means a work translated from any language into Lao or any other 
language or from Lao into another language; a work that is adapted, modified, 
transformed, compiled, interpreted, elucidated, a selected or chosen work.  
Answer:  
Lao PDR takes note of Members' comments and will ta ke the suggested clarification into account in 
revising Articles 3.28 and 75 of the IP Law.  S ee the timeline in the revised TRIPS Action Plan 
(WT/ACC/LAO/15/Rev.4).  
Question 67 
Article 3.30 of the Law on Intellectual Property defines reproductions as the "copying of a work 
or phonogram in a certain number, or numerous  copies".  The act of reproducing a work 
should not be defined by the number of copies made , as a single copy is sufficient to be deemed 
reproduction. 
Therefore, we suggest the following revision: "R eproduction means the copying of a work or 
object of related rights by any method, including the permanent or temporary copying of the work or object of related rights." 
Answer:
 
Lao PDR takes note of Members' comments and will ta ke this into account in revising Article 3.30 of 
IP Law following the requirements of the TRIPS Agreement.  See the timeline in the revised 
TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
Question 68 
We note Lao PDR's answer to Question 87 of  WT/ACC/LAO/18.  Article 5.4 requires that all 
use of intellectual property for a commercial purpose be authorized by the right holder; 
however, a right holder has the right to prevent any use of his copyrighted work, not just uses 
for a commercial purpose. 
As Lao PDR explained in its answer to Question 87,  because all types of uses must be authorized 
by a right holder, we suggest deleting referen ce to uses "for a commercial purpose" from 
Article 5.4. 
Answer:  
Lao PDR takes note of Members' comments and will ta ke this into account in revising Article 5.4 of 
the IP Law.  See the timeline in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).   WT/ACC/LAO/20 
 Page 41 
 
 
  Question 69 
We note Lao PDR's answer to Question 88 of  WT/ACC/LAO/18.  However, for purposes of 
accession and implementation of Article 9(2) of  the TRIPS Agreement, we suggest that "ideas" 
be inserted as another item ineligible of a copyright in Article 76 of the draft law. 
Answer:  
Lao PDR is elaborating the language "ideas" in the draft Decree implementing the IP Law.  Lao PDR 
will also take this into account in revising the IP Law.  See the timeline in the revised TRIPS Action 
Plan (WT/ACC/LAO/15/Rev.4). 
Question 70 
Paragraph 1 of Article 76 in Lao PDR's draft law provides that "information just for the 
purpose of news communication" is in eligible for copyright protection. 
Please clarify this provision, consistent with Arti cle 2(8) of the Berne Convention (incorporated 
in Article 9(1) of the TRIPS Agreement), to provi de that "news of the day or miscellaneous facts 
having the character of mere items of pres s information" are ineligible for copyright 
protection? 
Answer:  
Lao PDR is further elaborati ng the language "information just for the purpose of news 
communication" in the draft Decree implementing th e IP Law.  Lao PDR will also take this into 
account in revising the IP Law.  See the timeline in the revised TRIPS Action Plan 
(WT/ACC/LAO/15/Rev.4).  
Question 71 
We note Lao PDR's answer to Question 89 of WT/ACC/LAO/18.  However, Article 78 of the 
Law on Intellectual Property does not seem to ex tend protection to performances, producers of 
phonograms, and broadcast organizations belonging to foreign nationals or foreign individuals 
residing in Lao. 
Please explain where in the draft law protection for related rights is extended to foreign 
nationals. 
Answer:  
Lao PDR confirms that Article 78 (1.2, 1.3, 2.2 an d 3.2) does provide protection to foreign nationals 
who are protected under international conve ntions to which Lao PDR is a party. 
Lao PDR will join the Bern Convention by Sept ember 2011.  Lao PDR benefits from technical 
assistance provided by development partners as  outlined in the revised TRIPS Action Plan 
(WT/ACC/LAO/15/Rev.4). WT/ACC/LAO/20 
Page 42  
 
  Question 72 
We thank Lao PDR for its answer to Question 91 of WT/ACC/LAO/18.  Lao PDR explains that 
the persons in Article 85.2 are the legal owners of the rights, and that these rights may be extended to the persons in Article 85.1 if th ere is an agreement between them.  However, the 
language in the law does not make clear that an agreement among the parties is necessary for 
the rights in 85.2 to be extended to the persons in Article 85.1. 
Therefore, we suggest revision of the langua ge in Article 85 for purposes of clarity and 
consistency with Article 14 bis(2) of the Berne Convention, as incorporated in Article 9(1) of the 
TRIPS Agreement. 
Answer:
 
Lao PDR takes note of Members' comments and w ill clarify this language in the draft Decree 
implementing the IP Law and will also take this into account in revising the IP Law.  See the timeline 
in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
Question 73 
Article 86 of the draft law defines data comp ilation.  We appreciate Lao PDR's efforts to 
implement the TRIPS Agreement, but ask Lao PDR to consider further clarifying the definition 
in Article 86 so that it is more consistent with Article 10(2) of the TRIPS Agreement. 
We suggest the following language:  "Data comp ilation is the collection of data or other 
material, whether in machine readable or othe r form, which by reason of the selection or 
arrangement of their contents constitute intellect ual creations.  The copyright protection of data 
compilations does not extend to th e data or material itself and does not prejudice the copyright 
holders of the data or material itself." 
Answer:  
Lao PDR takes note of Members' comments and w ill clarify this language in the Draft Decree 
implementing the IP Law and will also take this into account in revising the IP Law.  See the timeline 
in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
Question 74 
Article 89(3) of the draft law grants performers  the right to "record live performances of the 
performer onto audio-visual discs."  The scope of this provision appears narrower than 
Article 14(1) of the TRIPS Agreement by limiting the fixation of works onto audio-visual discs, 
therefore eliminating such fixations in audio-only or visual-only formats. 
We suggest that Lao revise Article 89(3) of the dr aft law to be consistent with Article 14(1) of 
the TRIPS Agreement granting performers th e right to the "fixation of their unfixed 
performance", regardless of the medium on which the performance is fixed. 
Answer:  
Lao PDR takes note of Members' comments and will ta ke this into account in revising the IP Law.  
See the timeline in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).   WT/ACC/LAO/20 
 Page 43 
 
 
  Question 75 
Article 89(4) of the draft law grants performers  the right to "reproduce live performance of the 
performer onto audio-visual discs, directly or in directly."  The scope of this provision appears 
narrower than Article 14(1) of the TRIPS Agreement by limiting the fixation of works onto audio-visual discs, therefore eliminating such fi xations in audio-only or visual-only formats. 
We suggest that Lao PDR revise Article 89(4) of the draft law to be consistent with Article 14(1) 
of the TRIPS Agreement granting performers the right to the "direct or indirect reproduction of their fixed performance," regardless of the medium on which the performance is fixed. 
Answer:
 
Lao PDR takes note of Members' comments and will ta ke this into account in revising the IP Law.  
See the timeline in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
Question 76 
We thank Lao PDR for its answer to Question 93 of WT/ACC/LAO/18 with respect to 
Article 92 of the draft law.  Would Lao please explain who would be considered an "investor" for purposes of Article 92? 
Answer:
 
The term "Investor" refers, in general, to the indi vidual or entity who has provided the funds for the 
performance.  In this regard, Lao PDR takes not e of Members' comments and will clarify this 
language in the draft Decree implementing the IP Law and will also take this into account in revising 
the IP Law.  See the timeline in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
Question 77 
Article 93(2) of the draft law provides that, "in the case that the author is an organization, the 
term of copyright protection is 50 years starting from the date that the work is first published.  
In the case that the work is published, the term  of copyright protection shall be 50 years from 
the date that the work is first published." 
We suggest that Lao PDR revise Article 93(2) of th e draft law to be consistent with Article 12 of 
the TRIPS Agreement, which provides for a term of  protection of 50 years from the end of the 
calendar year of authorized publication, or, failin g such authorized publication within 50 years 
from the making of the work, 50 years from the end of the calendar year of making. 
Answer:  
Lao PDR takes note of Members' comments and will ta ke this into account in revising the IP Law.  
See the timeline in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  WT/ACC/LAO/20 
Page 44  
 
  Question 78 
Article 94(1) and (2) of the draft law provides for the term of protection for performers and 
producers of phonograms. 
We suggest that Lao PDR revise Article 94 of the draft law to be consistent with the term of 
protection for performers and producers of phonograms provided in Article 14(5) of the 
TRIPS Agreement, that is: 50 years computed from the end of the calendar year in which the 
fixation was made or the performance took place. 
Answer:
 
Lao PDR takes note of Members' comments and will ta ke this into account in revising the IP Law.  
See the timeline in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
Question 79 
With respect to Article 95(1) of the draft law: 
- Would Lao PDR please explain the limitation in Article 95(1) permitting the use of 
published works by broadcasting organizations for carrying out broadcasting programmes with sponsorship? 
- What are considered broadcasting programmes "with sponsorship"? 
Answer:
 
This provision establishes that when a broadcast re ceives sponsorship, the use of protected works is 
subject to remuneration, and does not require permission to be broadcasted. 
Question 80 
We suggest that Lao PDR further narrowing the limitations in Article 96 for purposes of 
complying with Article 13 of the TRIPS Agreement.  Suggestions include: 
- Narrowing Article 96(1.1) to a single reproduc tion of a literary or artistic work from a 
lawfully obtained copy; 
- Permitting the act in Article 96(1.2), (1.3 ) and (1.4), provided that the quoting is 
compatible with fair practice and its exte nt does not exceed that justified by the 
purpose; 
- Narrowing Article 96(1.5) to the reproduction of a single copy of a work for purpose of 
preservation (as opposed to research); 
- Narrowing Article 96(1.6) to only specifi c types of gatherings for non-commercial 
purposes or where a fee for admission is not charged; and 
- Narrowing Article 96(1.10) by limiting the number of copies that may be imported for 
one's personal use. 
Answer:  
Lao PDR takes note of Members' comments and will ta ke this into account in revising the IP Law, in 
particular the limitation of number of copies allo wed to special cases which do not conflict with 
normal exploitation of the work and do not unreas onably prejudice the legitimate interests of the 
rights holder, as provided for in Article 13 of the TRIPS Agreement.  See the timeline in the revised 
TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).   WT/ACC/LAO/20 
 Page 45 
 
 
  Question 81 
With respect to Article 97(1.1) and (1.2) of the draft law: Would Lao PDR please explain the limitation in Article 97(1.1) and (1.2) and how such 
limitations are consistent with Article 13 of the TRIPS Agreement? 
Answer:
 
Lao PDR takes note of Members' comments and will ta ke this into account in revising the IP Law, in 
particular the limitation of number of copies allo wed to special cases which do not conflict with 
normal exploitation of the work and do not unreas onably prejudice the legitimate interests of the 
rights holder, as provided in Article 13 of the TRIP S Agreement.  See the timeline in the revised 
TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
Question 82 
We suggest that Lao PDR further narrow the limit ations in Article 98 of the draft law for the 
purpose of complying with Article 13 of th e TRIPS Agreement.  Suggestions include: 
- Narrowing Article 98 (1.1) and (1.2) to a si ngle reproduction from a lawfully obtained 
copy; and 
- Permitting the act in Article 98 (1.3), provide d that the quoting is compatible with fair 
practice and its extent does not exceed that  justified by the purpose.  Furthermore, 
Lao PDR may consider further narrowing the cas es in which this limitation applies as it 
is currently written broadly. 
Answer:  
Lao PDR takes note of Members' comments and will take this into account in revising 
Articles 98(1.1), (1.2) and (1.3) of the IP La w, in accordance with Article 13 of the 
TRIPS Agreement.  See the timeline in the revi sed TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
- Geographical indications, including appellations of origin 
Question 83 Paragraphs 159-161:  As regards  Question 161, Lao PDR's replies that a posterior Geographical 
Indication cannot be registered if it would "lead to misunderstanding as to origin of goods", but 
can be registered if "its use would not mislead the consumer".  Moreover, Lao PDR also replied 
that when a trademark acquired protection before the date of filing of registration for a Geographical Indication, the owner of a Geographi cal Indication cannot prevent the use of it.  
Could Lao PDR explain how these explanatio ns are consistent with each other? 
Generally, it would be useful if Lao PDR could elaborate further on the co-existence of prior 
trademarks with posterior Geographical Indications. WT/ACC/LAO/20 
Page 46  
 
  Answer:
 
The draft Decree on Implementing IP Law states that  any measures to implement this Decree will not 
prejudice the eligibility of or the validity of the registration of a trademark, or the right to use a trademark, on the basis that such a trademark is id entical with, or similar to, a geographical indication, 
where a trademark has been applied for or registered in good faith: 
- before the date of entry into force of the Law on IPR; or 
- before the geographical indication is protected in its country of origin. 
Question 84 
We appreciate Lao PDR's response to Question 99, which explains that Lao PDR's current 
legislation does not currently address certain asp ects of Article 16 of the TRIPS Agreement, 
however, that its draft Implementing Decree of the Intellectual Property Law will include all the 
provisions to preserve the rights of industrial property owners, especially consistent with Article 16.1 and Article 24.5 of the TRIPS Agreement which relates to Trademarks and 
Geographical Indications. 
- We request that Lao PDR please submit this draft decree to the Working Party for 
review when it becomes available. 
- Can Lao PDR please provide an update on wh en this draft decree may be available for 
review? 
Answer:
 
Lao PDR takes note of Members' comments.  Currently, an initial draft of the Decree implem enting the IP Law was completed by the National 
Authority for Science and Technology and it is seek ing comments and inputs from line ministries and 
development partners, including WIPO, EU and US AID.  Once adopted, Lao PDR will submit it to 
the WTO Secretariat and made available to Members for review by the end of 2011 as provided for in 
the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).
 
Question 85 
We appreciate Lao PDR's response to Questi on 100.  Please explain whether Lao PDR is 
contemplating a procedure in which a party believing it will be harmed by the registration of a geographical indication may object to its registration. 
Answer:
 
Lao PDR will provide a procedure in which a party be lieving it will be harmed by the registration of a 
GI may object to its registration in order to comply with Article 16 and Article 17 of the 
TRIPS Agreement.  See the timeline for implementi ng regulations in the revised TRIPS Action Plan 
(WT/ACC/LAO/15/Rev.4).  WT/ACC/LAO/20 
 Page 47 
 
 
  Question 86 
We appreciate Lao PDR's response to Question 102.  Will the National Authority for Science 
and Technology provide for parties who believe  they will be harmed by registration of a 
geographical indication to file objections if, for example, they have prior trademark rights? 
Answer:  
Lao PDR takes note of Members' comments and confirms that in the draft Implementing Decree of 
the IP Law will incorporate the parties who believe  they will be harmed by registration of a 
geographical indication to file objections if, they ha ve prior trademark rights. See the timeline in the 
revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).   
Question 87 
We appreciate Lao PDR's response to Question 104, which explains that the definition in 
Article 3.17 of the Law on Intellectual Property is  to be read in conjunction with the last 
paragraph of Article 19.   
- We suggest that Lao PDR set out the complete definition in Article 17.   
- This would avoid the possibility that those rea ding Article 17 would think that what is 
included now is a complete definition of geographical indications. 
 
Answer:  
Lao PDR takes note of Members' comments and will ta ke this into account in revising Articles 17 of 
the IP Law, to avoid the possibility confusions of GI's definition.  See the timeline in the revised 
TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  
Question 88 Article 49 of the draft law "Term of Protection of Trademarks" sets the commencement of that 
term as the filing date of the application for reg istration.  This appears inconsistent with the 
TRIPS Agreement because the TRIPS Agreement set s the commencement of protection at the 
date of registration and renewal. 
Could Lao PDR please explain whether there is  there a reason for commencing protection 
before such protection is conferred? 
Answer:
 
In the case of Lao PDR, the date of filing is the sa me as the date of registration.  Lao PDR provides a 
longer term of protection than that require d by Article 18 of the TRIPS Agreement. WT/ACC/LAO/20 
Page 48  
 
  - Patents  
Question 89 According to paragraph 168 of the Elements of a Draft Working Party Report, the 
representative of Lao PDR stated that several provisions were added to the 2007 Intellectual Property Law to provide the right holder and o pportunity for judicial review of any patents 
that were revoked or forfeited, and to allow fo r the reversal of the burden of proof in process 
patent infringement actions. 
Please provide a copy of these new provisions, or state them in whole. 
Answer:
 
Lao PDR would like to request a rephrasing of the Elements of a Draft Working Party Report, to 
properly reflect the inclusion of provisions on judici al review and burden of proof in the Laotian 
legislation which are included in the Civil Procedur e Law Article 3 (The Right to File Claims and the 
Right to Request court Declarations) and Article 20  (Obligations of the Litigants to Present and 
Collect Evidence).  
Question 90 
Referring to paragraph 167 of the Elements of a Draft Working Party Report, if a compulsory 
licence is awarded, the owner of the patent or pe tty patent has 60 days to petition against any 
order or remuneration that it considers unreasona ble.  To what entity may the owner seek 
review of this decision? 
Answer:  
The owner may lodge petition against any order or remuneration that it considers unreasonable in 
accordance with remedies as provided for in Article 119 of the IP Law. 
Question 91 
On the 2007 Intellectual Property Law:  Article 21  of the 2007 Intellectual Property Law states 
that inventions or innovations that are contrary to the "culture and fine tradition of the nation: are ineligible for protection.  Please provide an example of an invention or innovation that 
would be ineligible for protection based on these criteria. 
Answer:
 
This provision is the reflection in Lao PDR's legi slation of Article 27.2 of the TRIPS Agreement, 
which allows for the exclusion of patent protection when, inter alia ,  it is "necessary to protect ordre 
public  or morality", e.g. the use of the image of the Buddha in obscene ways, and methods/ 
formulations of illegal drugs. 
Question 92 On the 2007 Intellectual Property Law:  Are non-bi ological or microbiological processes eligible 
for patent protection under the Lao PDR patent law?  WT/ACC/LAO/20 
 Page 49 
 
 
  Answer:  
Yes, non-biological or microbiological processes are eligible for patent prot ection under the Lao PDR 
IP Law.  Further clarification will be provided in the decree implementing the IP Law.  See  the timeline in the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4). 
Question 93 
On the 2007 Intellectual Property Law:  Article 20  of the 2007 Intellectual Property Law states 
that one of the requirements of a trade secret is th at it is information that "must not have been 
accessed by relevant persons."  It is not clear who "relevant persons" are. 
To clarify, and ensure conformity with Articl e 39.2 of the TRIPS Agreement, we suggest the 
following text: "has been kept secret by persons in control of the information". 
Answer:
 
Lao PDR takes note of Members' comment and the re quirements provided for in Article 39.2(a) of the 
TRIPS Agreement.  This will be taken into account  in drafting the Decree implanting the IP Law.  
See the timeline in the revised TRI PS Action Plan (WT/ACC/LAO/15/Rev.4). 
Question 94 
On the 2007 Intellectual Property Law:  Articl e 100(2)(2.3) of the 2007 Intellectual Property 
Law states that the owner of a trade secret has no right to prohibit others from using "confidential information relating to pharmac eutical products and agricultural chemicals 
having no commercial purposes". 
Please explain the types of confidential information that fall under this provision and provide an 
example. 
Answer:
 
Article 100(2) or 100(2.3) of the 2007 Intellectual Property Law should be read in conjunction with 
Article 111.5 of the same law. These provisions aim to protect the public, reflecting Article 39.2 and 3 of the TRIPS Agreement. However, in order to improve their clarity, Lao PDR takes note of Members' comments and will take it into account in revising Article 20 of IP Law and in drafting its 
implementing regulations.  See the timeline in the revised TRIPS Action Plan 
(WT/ACC/LAO/15/Rev.4).  
Question 95 
Please explain how the Lao PDR complies with Article 39.3 of the TRIPS Agreement which 
requires that confidential data provided to th e Government, as a condition of approving the 
marketing of pharmaceutical or agricultural chem ical products must be protected from unfair 
commercial use.  Please cite to  relevant laws and regulations. WT/ACC/LAO/20 
Page 50  
 
  Answer:
 
Lao PDR complies with Article 39.3 of the TRI PS Agreement through the enforcement of following 
laws: 
- Intellectual Property Law No. 08/NA dated 24 December 2007 (Art. 111.5, 130 to 135); and 
- Criminal Law No. 09/NA dated 12 November 2005 (Art. 104 and 153). 
- ENFORCEMENT Question 96 Please specify where in its laws Lao PDR provides for effective action against infringement of 
intellectual property rights and remedies which constitute a deterrent to further infringement without creating barriers to legitimate  trade or opportunities for abuse. 
Answer:
 
Lao PDR provides for effective action against infr ingement of intellectual property rights and 
remedies which constitute a deterre nt to further infringement without creating barriers to legitimate 
trade or opportunities for abuse in the following laws: 
- Intellectual Property Law No. 08/NA dated 24 December 2007 (Articles 130 to 135); 
- Civil Procedure Law No. 02/NA dated 17 May 2004 (for civil action); and 
- Criminal Procedure Law No. 01/NA dated 15 May 2004 (for criminal action). 
Question 97 
Please specify where in its laws Lao PDR provid es enforcement procedures that are fair and 
equitable and are not unnecessarily complicated or  costly and do not en tail unreasonable time 
limits or unwarranted delays. 
Answer:  
Lao PDR provides enforcement procedures that ar e fair and equitable and are not unnecessarily 
complicated or costly and do not entail unreasonabl e time limits or unwarranted delays in the 
following laws: 
- Economic Dispute Resolution Law No. 02/ NA dated 19 May 2005 (for mediation and 
arbitration) which was amended in December 2010; 
- Petition Handling Law No. 07/NA dated 9 No vember 2005 (Articles 16 to 20 for 
administrative action); 
- Civil Procedure Law No. 02/NA dated 17 May 2004 (for civil action);  - Criminal Procedure Law No. 01/NA dated 15 May 2004 (for criminal action);  - Court Fee Law No. 7/NA dated 27 December 2006 (for court fees); 
- Presidential Edict on Fees and Service Charges No. 03/PO dated 17 March 2008 
(for administrative fees); and 
- Judgment Enforcement Law No. 04/NA dated 25 July 2008 (for judgment enforcement).  WT/ACC/LAO/20 
 Page 51 
 
 
  Question 98 
Where specifically in its laws does Lao PDR requi re that decisions on the merits be based upon 
the evidence presented by the parties to the proceeding? 
Answer:  
Lao PDR uses "inquisitorial system" in court proceedings where the court or a part of the court is 
actively involved in investigating the facts of the case.  Therefore, the merit decisions are based on 
evidence as presented by parties as well as evidence disc overed by the court.  Below are the relevant 
laws: 
- People's Court Law No. 09/NA date d 26 November 2009 (Article 12);  
- Civil Procedure Law No. 02/NA dated 17 May 2004 (Articles 20 and 78); and 
- Criminal Procedure Law No. 01/NA dated 15 May 2004 (Articles 28 to 30). 
Question 99 
Where specifically, if at all, in its laws does Lao PDR require that the decisions on the merits of 
a particular case be done in writing with the reasons explained? 
Answer:  
Civil Procedure Law No. 02/NA, dated 17 May 2004, in particular, in its Article  85 indirectly requires 
that decisions on civil cases must be in writing.  Article 105 of the same law indirectly requires that 
court decisions on civil cases must include reasons of decision.  There are similar requirements for criminal cases as set out in Articles 80 and 93 of the Criminal Procedure Law No. 01/NA, dated 15 May 2004. 
Question 100 
Where specifically in its laws does Lao PDR provi de for appeals to judicial bodies of final 
administrative decisions and of at least the legal aspects of initial judicial decisions on the merits of a case? 
Answer:
 
Lao PDR provides for appeals to judicial bodies of fi nal administrative decisions and of at least the 
legal aspects of initial judicial decisions on the merits of a case in the following law:  
- Intellectual Property Law No. 08/NA dated 24 December 2007 (Article 117); 
- Petition Handling Law No. 07/NA dated 9 Nove mber 2005 (in particular Article 6.6); 
- Civil Procedure Law No. 02/NA dated 17 May 2004 (for civil action); and  - Criminal Procedure Law No. 01/NA dated 15 May 2004 (for criminal action). 
Question 101 
Where specifically in its laws does Lao PDR provide  a procedure that allows plaintiffs to bring 
an action for infringement for those types of in tellectual property covered by Articles 9 to 40 of 
the TRIPS Agreement? WT/ACC/LAO/20 
Page 52  
 
  Answer:
 
Lao PDR provide general procedures that allow plain tiffs to bring an action for infringement for IP 
covered by Articles 9 to 40 of the TRIPS Agreement in the following laws:  
- Petition Handling Law No. 07/NA dated 9 Nove mber 2005 (for administrative action);  
- Civil Procedure Law No. 02/NA dated 17 May 2004 (for civil action); and  
- Criminal Procedure Law No. 01/NA dated 15 May 2004 (for criminal action). 
Question 102 
Where specifically in its laws does Lao PDR re quire that defendants be notified of such 
proceedings in writing? 
Answer:  
Lao PDR requires that defendants be notified of such  proceedings in writing in the following law:   
- Civil Procedure Law No. 02/NA dated 17 May 2004 (Article 40).  
Question 103 
Where specifically in its laws does Lao PDR pe rmit both sides to the proceeding to present 
evidence in support of their position? 
Answer:  
Lao PDR permits both sides to the proceeding to pr esent evidence in support of their position in the 
following laws:  
- Civil Procedure Law No. 02/NA dated 17 May 2004 (Article 20); and 
- Criminal Procedure Law No. 01/NA dated 15 May 2004 (Articles 28 to 30). 
Question 104 
Where specifically in its laws does Lao PDR provi de a means to protect confidential information 
in such proceedings? 
Answer:  
Lao PDR provides a means to protect confidential in formation in such proceedings in the following 
laws:  
- Intellectual Property Law No. 08/NA dated 24 December 2007 (Articles 107.3); 
- Petition Handling Law No. 07/NA dated 9 November 2005 (Article 33);  
- People's Court Law No. 09/NA dated 26 N ovember 2009 (Articles 13 and 56.5); and 
- Criminal Law No. 09/NA dated 12 November 2005 (Articles 104 and 153). 
Question 105 
Where does Lao PDR law give judges the authority to order production of evidence necessary to 
substantiate a party's claims where that part y has been unable to obtain evidence that lies 
within the control of the opposing party?  WT/ACC/LAO/20 
 Page 53 
 
 
  Answer:  
Lao PDR indirectly gives judges the authority to order production of evidence necessary to 
substantiate a party's claims where that party has been unable to obtain evid ence that lies within the 
control of the opposing party in the following laws: 
- Civil Procedure Law No. 02/NA dated 17 May 2004 (Article 20); and 
- Criminal Procedure Law No. 01/NA dated 15 May 2004 (Articles 28 to 30). 
Question 106 
Where does Lao PDR law provide judges the authority to issue orders or injunctions enjoining 
a party from intellectual property infringements? 
Answer:  
Lao PDR provides judges the authority to issue orders or injunctions enjoining a party from violations 
(including intellectual property infringements) in the following laws:  
- Civil Procedure Law No. 02/NA dated 17 May 2004 (Article 71); and  
- Criminal Procedure Law No. 01/NA dated 15 May 2004 (Articles 59 to 68). 
Question 107 
Where does Lao PDR law provide judges the authority to order the payment of monetary 
damages adequate to compensate for the injury suffered by the right holder as a result of the 
infringement? 
Answer:  
Lao PDR provides judges the authority to order mo netary compensation for any damages caused by 
one person to another person (inclu ding damages caused by IPR infringements) in the following law:  
- Law on Contract and Tort No. 1/NA dated 8 December 2008 (Articles 83, 91 and 101). 
Question 108 
Where does Lao PDR law provide judges the authorit y to order infringers to pay right holders' 
enforcement costs? 
Answer:  
Lao PDR provides judges the authority to order infring ers to pay right holders' enforcement costs in 
the following laws:  
- Court Fee Law No. 7/NA dated 27 December 2006 (Articles 26 and 33); and  
- Judgment Enforcement Law No. 04/NA dated 25 July 2008 (Article 35). 
Question 109 
Where does Lao PDR law provide judges the authority to order that goods found to be 
infringing be disposed of outside the channels of commerce? WT/ACC/LAO/20 
Page 54  
 
  Answer:
 
Article 71 of the Civil Procedure Law No. 02/NA,  dated 17 May 2004, provides judges quite broad 
authority to order injunctions against any on-going vi olations.  Such broad authority allows judges to 
order that goods found to be infringing be dis posed of outside the channels of commerce. 
Question 110 
Where does Lao PDR law provide judges with the authority to order that materials and 
implements used to create the infringing goods be  disposed of outside the channels of commerce 
in such a manner as to minimize the risks of further infringements? 
Answer:  
Article 71 of the Civil Procedure Law No. 02/NA,  dated 17 May 2004, provides judges quite broad 
authority to order injunctions against any on-going vi olations.  Such broad authority allows judges to 
order that materials and implements used to creat e the infringing goods be disposed of outside the 
channels of commerce in such a manner as to minimize the risks of further infringements. 
Question 111 
Where does Lao PDR law provide judges auth ority to order the payment of adequate 
compensation to parties injured as a result of being wrongfully enjoined or restrained, including 
attorney's fees and expenses, in those cases where the party requesting enforcement measures 
has abused such procedures? 
Answer:  
Lao PDR provides judges the authority to order mo netary compensation for any damages caused by 
one person to another person (inc luding damages caused by abuse of any court injunction) in the 
following law: Law on Contract and Tort No. 1/NA, dated 8 December 2008, (Articles 83, 91 
and 101). 
Question 112 
Where does Lao PDR law exempt public authoriti es and officials from liability in connection 
with the administration of intellectual property laws where such actions are taken or intended 
in good faith in the course of the administration of that law? 
Answer:  
Lao PDR exempts public authorities and officials fro m liability in connection with the administration 
of intellectual property laws where such actions are taken or intended in good faith in the course of 
the administration of that law in the following laws:  
- Law on Contract and Tort No. 1/NA da ted 8 December 2008 (Article 83); and  
- Criminal Law No. 09/NA dated 12 November 2005 (Articles 22 and 23). 
Question 113 
To the extent that any civil remedy can be orde red as a result of admi nistrative procedures, 
where does Lao PDR law ensure that administ rative procedures conform to the principles 
contained in Articles 42 to 49?  WT/ACC/LAO/20 
 Page 55 
 
 
  Answer:  
Civil remedy cannot be ordered as a result of administrative procedures under Lao PDR's law.  
Question 114 
Where does Lao PDR law authorize judges to  grant temporary restraining orders and 
provisional relief to prevent infringement and to preserve relevant evidence relating to the 
alleged infringement? 
Answer:  
Civil Procedure Law No. 02/NA (Articles 71, 76 and 119), dated 17 May 2004, and Criminal 
Procedure Law No. 01/NA (Articles 59-68), dated 15 May 2004, provide judges quite broad authority 
to order injunctions against any on-going violations .  Such broad authority allows judges to grant 
temporary restraining orders and provisional relief to prevent infri ngement and to preserve relevant 
evidence relating to the alleged infringement. 
Question 115 
Where does Lao PDR law provide judges with the authority to adopt provisional measures 
inaudita altera parte  (ex parte )? 
Answer:  
Lao PDR provides judges with the authority to adopt provisional measures inaudita altera parte  
(ex parte ) in the following laws: 
- Civil Procedure Law No. 02/NA dated 17 May 2004 (Articles 71, 76 and 119); and  
- Criminal Procedure Law No. 01/NA dated 15 May 2004 (Articles 59 to 68).  
Question 116 
Where does Lao PDR law provide judges with the au thority to require the complaining party to 
provide a security or equivalent assurance to  protect the defendant and prevent abuse? 
Answer:  
Lao PDR law does not specifically provide judges with  the authority to require the complaining party 
to provide a security or equivalent assurance to pr otect the defendant and prevent abuse.  However, 
Lao PDR is elaborating a Ministerial Instruction on  Customs Protection of Intellectual Property where 
the applicant for a suspension of the release of imported or exported goods from free circulation shall 
deposit a security with the Customs Department in order to protect the defendant and to prevent 
abuse.  The Instruction is planned to be issued by the end of 2011.  WT/ACC/LAO/20 
Page 56  
 
  Question 117 
Where does Lao PDR law provide for notice to  parties affected by the adoption of ex parte  
provisional measures? 
Answer:
 
While Lao PDR does not specifically provide for no tice to parties affected by the adoption of ex part e 
provisional measures, it has a general rule under the second paragraph of Article 13 of the Civil 
Procedure Law No. 02/NA, dated 17 May 2004, which requires courts to notify the parties of their 
rights and obligations, warn and instruct them to co mply with laws and regulations.  Therefore, if 
imposing any obligation or measure to any party, the relevant court shall notify such a party.  
Question 118 
Where does Lao PDR law provide for a right to be heard, within a reasonable period after 
receipt of notification that provisional measures have been instituted, on the issue of whether the measures should be modified, revoked or confirmed? 
Answer:
 
Article 72 of the Civil Procedure Law No. 02/NA, dated 17 May 2004, provides for a right to be heard 
on the issue of whether the provisional measures should be modified, revoked or confirmed. 
Question 119 
Where does Lao PDR law provide for suspension of release by the competent authorities of 
goods suspected of bearing a counterfeit trademark or of being a piratical copyrighted work at the request of a right holder? 
Answer:
 
Lao PDR is elaborating a Ministerial Instruction on  Customs Protection of Intellectual Property where 
a right holder may request the customs authority fo r a suspension of the release of suspected goods 
from free circulation. The Instruction is planned to be  issued by the end of 2011.  The Instruction will 
cover the requirements of Articles 51 to 60 of th e TRIPS Agreement.  See the timeline the revised 
TRIPS Action Plan (WT/ACC/LAO/15/Rev.4). 
Question 120 Where does Lao PDR law require right holders init iating border measures to provide evidence 
of a prima facie infringement and a description of the goods sufficient for customs authorities to recognize them? 
Answer:
 
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Articles 51 to 60 of the TRIPS Agreement. The Instruction is planned 
to be issued by the end of 2011.   WT/ACC/LAO/20 
 Page 57 
 
 
  Question 121 
Where does Lao PDR law require the right holder to  be notified within a reasonable time of a 
decision by the competent authority re garding acceptance of the application? 
Answer:  
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Articles 51 to 60 of the TRIPS Agreement. The Instruction is planned 
to be issued by the end of 2011. 
Question 122 
In accordance with the qualifying language co ntained in Article 53(2), where does Lao PDR law 
authorize the competent authorities to require the owner, importer, or consignee entitled to the 
release of suspended goods involving industrial d esigns, patents, layout designs or undisclosed 
information to post a bond sufficient to protect the right holder for any infringement? 
Answer:  
Lao PDR is elaborating a ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011. 
Question 123 
Where does Lao PDR law require prompt notifica tion of the right holder and the importer 
when action under Article 51 is taken? 
Answer:  
Lao PDR is elaborating a ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011. 
Question 124 
Where does Lao PDR law provide for the release of the suspended goods in those cases where 
the competent authorities have not been informed of the initiation of proceedings that will lead 
to a decision on the merits as called for in Article 55? 
Answer:  
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011.  
Question 125 
Where does Lao PDR law authorize competent au thorities to require the right holder to 
compensate the importer, consignee, or owner of the goods for any injury caused to the importer, consignee, or owner through the wron gful detention of goods and/or through the 
detention of goods released pursuant to the terms of Article 55? WT/ACC/LAO/20 
Page 58  
 
  Answer:
 
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011. 
Question 126 
Where does Lao PDR law provide right holders the right to inspect the detained goods in order 
to substantiate the right holder's claims? 
Answer:  
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011. 
Question 127 
Where does Lao PDR law provide importers the right to inspect the detained goods? 
Answer:  
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011. 
Question 128 
Where, if at all, does Lao PDR law provide the co mpetent authorities with the right to act upon 
their own initiative in suspending the release of goods that are suspected of infringing 
intellectual property rights? 
Answer:  
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011. 
Question 129 
Where does Lao PDR law provide the competent authorities with the authority to order the 
destruction or disposal of infringing goods in accordance with the principles set out in Article 46? 
Answer:
 
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011.  WT/ACC/LAO/20 
 Page 59 
 
 
  Question 130 
Where does Lao PDR law specify that competent authorities shall not allow the re-exportation 
of counterfeit trademark goods in an unaltered st ate or subject them to a different customs 
procedure, other than in exceptional circumstances? 
Answer:  
Lao PDR is elaborating a Ministerial Instruction on Customs Protection of Intellectual Property which 
will cover the requirements of Artic les 51 to 60 of the TRIPS Agreemen t.  The Instruction is planned 
to be issued by the end of 2011. 
Question 131 
Where does Lao PDR law provide criminal proce dures and penalties, sufficient to act as a 
deterrent, for wilful trademark counterfeiting  or copyright piracy on a commercial scale? 
Answer:  
Lao PDR provides criminal procedures and penalties,  sufficient to act as a deterrent, for wilful 
trademark counterfeiting or copyright piracy on a commercial scale in the following laws: 
- Intellectual Property Law No. 08/NA date d 24 December 2007 (Article 134); and  
- Criminal Procedure Law No. 01/NA dated 15 May 2004 (for criminal procedures). 
Question 132 
Where does Lao PDR law provide that, in appr opriate cases, criminal remedies shall also 
include the seizure, forfeiture and destruction of  the infringing goods and of any materials and 
implements used in the commission of the offense? 
Answer:  
Lao PDR generally provides in the following laws th at, in appropriate cases, criminal remedies shall 
also include the seizure and forfeiture of the infringing goods and of any materials and implements used in the commission of the offense: 
- Criminal Law No. 09/NA dated 12 November 2005 (Article 34); 
- Criminal Procedure Law No. 01/NA dated 15 May 2004; and 
- Intellectual Property Law No. 08/NA dated 24 December 2007 (Article 135).  
Lao PDR will incorporate the requirement of dest ruction of infringing goods in the implementing 
decree of the Intellectual Property Law.  See the timeline the revised TRIPS Action Plan (WT/ACC/LAO/15/Rev.4).  WT/ACC/LAO/20 
Page 60  
 
  VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 133 Paragraph 186:  The Elements of the Draft Wo rking Party Report indicates that "the public 
sector had traditionally been the principal servi ces supplier, but with market-oriented reforms 
and privatization the private sector was gaining prominence".   
- Could this be elaborated on to outline ho w and to what extent the private sector has 
gained prominence?   
- What sectors are seeing the most private sector growth?   - What sectors are still dominated by a public service supplier? 
Answer:
 
The private sector has gained pr ominence in such services sectors as computer, courier, telecoms, 
construction, distribution, education, environmen tal, insurance, banking and tourism services.  
In 2009, the service sector accounted for 26 per cen t of GDP.  Services exports have grown at about 
6.6 per cent per annum since 1990 while the grow th in services exports was largely due to a 
significant expansion in the tourism industry.  At this  stage, there is no data to assess the growth of the 
specific services sectors.   
Services sectors that are still dominated by public suppliers are hospital, water supply, electricity 
distribution, and postal services. 
Question 134 
Paragraph 187:  The Elements of the Draft Working Party Report suggests that "the legal 
framework and the regulatory capacity for se veral sections were still being developed".  
For which service sectors specifically are the legal framework and regulatory capacities still 
being developed, and at what stage is this development? 
Answer:  
The legal framework is being de veloped while regulatory and supervisory capacities are also being 
strengthened in most of services sectors as part of the reform process of Lao PDR.  For example in 
telecommunication, the draft Telecom Law is bei ng finalized to replace the Telecoms Law of 2001 
while in insurance sector, the Insu rance Law is in its initial draft to replace the Insurance of 1990.  
In the banking system, the Commercial Bank Law was adopted in 2006 which then followed by its implementing Decree in 2009.  However, further regul atory framework needs to be elaborated to take 
into account the opening up of new activities in ba nking services in response to the development need 
of Lao PDR.  Recent legislative developments in other services incl ude the adoption of Law on Postal 
(2004), Law on Tourism (2005), Law on Civil Aviati on (2005), Law on Health Care (2005), Law on 
Accounting (amendment, 2007), Law on Educatio n (amendment, 2007), Law on Media (2008), 
Law on Water Supply (2009), and Law on Construction (2008). 
To implement transparency obligation under the GATS Agreement, a single enquiry point was 
established in the Ministry of Industry and Commerce following the adoption of Decree No. 363/PM 
on the Notification and Enquiry of Trade Relate d Information, dated 19 August 2010, and Decision 
No. 0349/MOIC.FTPD on the GATS Enquiry Point, dated 22 February 2011.  A copy of the 
legislation has been provided to the WTO Secretariat (WT/ACC/LAO/18/Add.2 and WT/ACC/LAO/20/Add.1).  WT/ACC/LAO/20 
 Page 61 
 
 
  Address of the GATS Enquiry Point is:  
Foreign Trade Policy Department  
Ministry of Industry and Commerce PO Box 4107, Vientiane Capital, Lao PDR Tel: 85621-450065 
Fax: 85621-450066 
Website: www.m-lao.com/ftpd 
Question 135 
Paragraph 193:  The Elements of the Draft Working Party Report indicates that although some 
natural monopolies exist, a number of sectors have  been opened to competition.  Could the 
Elements of the Draft Working Party Report elaborate, identifying which areas still have 
natural monopolies and which have been opened  to competition?  Although the examples 
presented in the Elements of the Draft Work ing Party Report are useful, a more specific 
account of the affected sectors would be valuable. 
Answer:
 
The information in services sector is still valid accord ing to paragraph 193 of the Elements of a Draft 
Working Party Report.  The sectors that have prev iously been under natural monopoly which are now 
open to competition include: courier and telecoms  (with new entry of foreign and joint venture 
companies after 2000) as well as banking and insura nce (after 2007).  See also the response to 
Question 133. 
Question 136 
Paragraph 188 of the Elements of the Draft Working Party Report states the following:  
"The Business Law No. 03/94/NA of 18 July 1994 which had reserved certain activities 
for Lao nationals, notably services incide ntal to forestry or manufacturing, retail 
services, clerical or secretarial services, touris t guides, road transport services, teaching 
the Lao language, security guard services, build ing cleaning services and postal services 
had been replaced by the Enterprise Law No. 11/NA of 9 November 2005, which aimed 
at providing foreign and domestic investo rs an opportunity to conduct businesses on an 
equal footing." 
- It is not clear which activities remain reserved for Lao nationals.  Could Lao PDR 
provide a list of which activities, if any, may only be carried out by Lao nationals? 
- Could Lao PDR indicate whether services inci dental to forestry or manufacturing, retail 
services, and road transport services remain reserved for Lao nationals? 
Answer:  
Concerning business activities, there are no restric tions except a few services which have a cultural 
sensitivity such as tour guide services.  However,  the Labour Law has certain restrictions, according 
to immigration policy.   
__________