RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/LAO/12/Rev.3 
29 March 2011 
 (11-1547) 
Working Party on the 
Accession of the Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Action Plan on the Legislative Work and   
Implementation of the Customs Valuation Agreement  
 
Revision  
   The following submission, dated 16 March
 2011 , is being circulated at the request of the 
Government of the Lao People's Democratic Republic (Lao PDR). 
 
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 WT/ACC/LAO/12/Rev.3 
Page 2  
 
  Year Steps/Measures/Activities Technical Assistance 
(TA) 
2005/ 2006 - Customs Law was adopted by National Assembly in May 2005; 
- Lao PDR joined the Agreement to Establish and Implement the ASEAN 
Single Window (ASW) in December 2005, aiming at strengthening coordination among ASEAN customs administrations and economic operators (importers, exporters, tr ansport operators, customs brokers, 
etc.) to effectively and efficiently implement the ASW by 2012; 
- Developed technical training programme; and - Created Post Clearance Audit Unit under Customs Department. TA received from 
IMF on building legal framework. 
2007 - Became the 171th member of the World Customs Organization (WCO) 
in January 2007; 
- Post Release Review commenced; - Commenced training to customs officers and traders on WTO CVA; - Commenced trade outreach programme (consultation/information 
dissemination); and 
- Decree implementing the Customs Law No. 362/PM, based on key 
principles of the CVA, was adopted on 19 October 2007. TA received from 
IMF on building legal framework. 
2008 - Work plan prepared for compliance with the WTO CVA; 
- Technical assistance received from the World Bank under Customs and 
Trade Facilitation Project.  The purpose is to assist Lao PDR in the implementation of an automated customs system ASYCUDA World.  The project finances the acquisition of equipment, customization and installation including user training of UNCTAD's ASYCUDA at headquarter and nationwide at international border checkpoints in three phases:  1) Development of prototype; 2) Validation on a pilot site; and 3) Replication to remaining checkpoint sites; and  
- On-going training and outreach programmes provided to customs 
officers and traders on WTO CVA.  TA received under 
the Customs and 
Trade Facilitation Project. 
2009 - Guidance No. 0491/MOF on Implementation of Decree Implementing 
the Customs Law was adopted 12 March 2009; 
‐ Prepared valuation technical procedures; 
- On-going training and outreach programmes provided to customs 
officers and traders on WTO CVA;  
- Provided transitional assistance and guidance to traders; and 
‐ Commenced post release review. TA received from 
IMF on building legal framework.  TA received under the Customs and Trade Facilitation Project.  
2010 ‐ Risk management team was created to collect risk management data 
(company profile, import-export statistics and duties collection); 
‐ On-going trainings held for customs staff 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 Valuation no. 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 imported under FTAs (e.g. CEPT-AFTA) and by Government projects and international organizations (began in November 2010);  
‐ Post release review of customs declaration was carried out to verify 
accuracy of declared value (based on the PCA 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.  TA received from 
IMF on building 
legal framework.  TA received under the Customs and Trade Facilitation Project. 
  WT/ACC/LAO/12/Rev.3 
 Page 3 
 
 
   The challenges facing Lao PDR in implemen ting the WTO CVA provisions include the low 
rate of voluntary compliance by importers, their lack of sound accounting systems and record keeping, and the limited capacity of the customs o fficials to administer CVA valuation provisions. 
 Previously, Lao PDR applied reference price to a large number of products in order to provide 
consistency of treatment and to  deter valuation fraud.  The us e of reference price has been 
progressively phased out and replaced with the transac tion value and all other provisions of the CVA.  
Training and outreach programmes have been regularly  provided for customs officers and traders on 
the CVA methods.  Time is also required for La o PDR to develop its valuation procedures and 
policies, to strengthen the post release review and post clearance audit programme, as well as to 
develop automation system including a valu ation reference database to support ASYCUDA 
implementation. 
 Lao PDR will bring its legal framework into compliance with the provisions of the WTO 
CVA by December 2012, while full implementation th e CVA is to be achieved by December 2015.  
Specifically, the action plan foresees th e following objectives and timelines: 
By the end of 2011:
 
- Commence automation project implementation - ASYCUDA World (Phase 2:  Instalment of 
the Prototype at pilot sites) supported by the World Bank and UNCTAD to provide information and reports by selected and low risk importers;  
- Review Decree and regulations implementing the Customs Law with a view to ensure full 
compliance with the provisions of the WTO CVA;  
- Commence initial implementation of risk management; 
- Commence initial implementation of Post Clear ance Audit by June 2011 for goods imported 
under FTAs (CEPT-AFTA), and by Government pr ojects and international organizations;  
- Provide ongoing training and outreach progra mmes for customs officers and traders on the 
application of the WTO CVA; 
- Prepare for the operation of Lao PDR's national single window under ASEAN Single 
Window (ASW); and 
- The list of reference price will be reduced from 800 items to 288 items by the end of 2011. 
By the end of 2012:
 
- Complete the automated customs processing system - ASYCUDA World (Phase 3:  
Nationwide rollout) supported by the World Bank and UNCTAD, including a sophisticated selectivity function to identify pot ential cases of undervaluation;   
- Operationalize Lao PDR's national single wi ndow under the ASW by the end of 2012 by 
which customs transactions, processes and decisions are performed complying with the principles of:  consistency; simplicity; transparency; and efficiency;  
- Incorporating all provisions of the WTO CVA a nd its Interpretative Notes into regulations 
implementing the Customs Law; 
- Provide ongoing training and outreach progra mmes for customs officers and traders on the 
application of the WTO CVA; and   
- Eliminating all the reference prices by December 2012.    
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