RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/LAO/18 
1 June 2010 
 (10-3022) 
Working Party on the 
Accession of Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Additional Questions and Replies  
 
 
 The following submission, dated 17 May 2010, is  being circulated at the request of the 
Delegation of Lao People's Demo cratic Republic (Lao PDR). 
  
_______________  WT/ACC/LAO/18 
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TABLE OF CONTENTS 
II. ECONOMIC POLICIES..........................................................................................................1  
- Investment Regime.............................................................................................................. ......1  
- State Ownership and Privatization .........................................................................................2  
- Pricing Policies ............................................................................................................... ...........3  
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 .....................................................................5  
- Trading Rights ................................................................................................................. .........5  
A. IMPORT REGULATIONS......................................................................................................9  
- Other duties and charges....................................................................................................... ...9 
- Tariff rate quotas, tariff exemptions.....................................................................................10  
- Fees and charges for services rendered.................................................................................11  
- Application of internal taxes to imports ...............................................................................11  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............12  
- Customs valuation.............................................................................................................. .....16  
- Rules of origin ................................................................................................................ .........17  
- Pre-shipment inspection ........................................................................................................ .19 
B. EXPORT REGULATIONS ...................................................................................................20  
- Export rest rictions ............................................................................................................ ......20  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................21  
- Industrial policy, including subsidies....................................................................................21  
- Technical barriers to trade, standards and certification.....................................................22  
- Sanitary and phytosanitary measures...................................................................................25  
- State-trading entities......................................................................................................... ......28  
- Free zones, special economic areas........................................................................................28  
- Agricultural policies.......................................................................................................... ......29  
V. TRADE RELATED INTELLECTUAL  PROPERTY REGIME.......................................30  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ...........................................................................31  
- Copyright and related rights..................................................................................................3 1 
- Trademarks, including  service marks...................................................................................34  
- Geographical indications, including appellations of origin.................................................34  WT/ACC/LAO/18 
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 ENFORCEMENT...................................................................................................................3 7 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................38  
VII. TRANSPARENCY .................................................................................................................38  
 
  WT/ACC/LAO/18 
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 II. ECONOMIC POLICIES 
- Investment Regime Question 1 In reply to Question 1 of WT/ACC/LAO/17 and paragraph 26 of the Factual Summary, Lao 
PDR notes that a revised Investment Law is expe cted to be submitted to the National Assembly 
for adoption this year. 
Could Lao PDR provide an update on the status of the revised Law? Will Decree No. 301/PM (12 October 2005), which implements  the current Foreign Investment 
Law, also be revised in conformance with the new law? 
Answer:
 
In 2009, the National Assembly adopted the ne w Law on Investment Promotion No. 02/NA, dated 
8 July 2009 which eliminated the provision on local content requirements.  The Law unifies the Law on Foreign Investment Promotion of 2004 and the Law on Domestic Investment Promotion of 2004, aiming at further enhancing the investment environm ent for investors of all economic sectors.  The 
new Law regulates investment activities, investors' rights and obligations, the allocation of incentives, 
and the administration of investment activities in  Lao PDR.  Through this new Law, the Decree
 of the 
Prime Minister Regarding the Implementation of  the Law on Promotion of Foreign Investment 
No. 301/PM, dated 12 October 2005 and Decree of th e Prime Minister Regarding the Implementation 
of the Law on Promotion of Domestic Investment  No. 300/PM, dated 12 October 2005, are 
automatically abrogated.  A new Decree in line with the new Investment Promotion Law is under 
preparation and it is expected to be adopted by the end of 2010. 
Question 2 During the Working Party meeting of 13 July, Lao PDR announced that a new draft Investment 
Law was passed by the National Assembly, whic h foresees the elimination of local content 
requirements linked to investment incentives.  Lao PDR confirmed that this new Investment Law provides for the immediate elimin ation of local content requirements. 
Could a copy of this draft Law be shared  with the Members of this Working Party? 
Could Lao PDR confirm as from which date local content requirement will be removed?  
Could Lao PDR explain the measures and actions planned in order to do away with local 
content requirements? 
Answer:
 
Lao PDR confirms that under the new Law on Investment Promotion No. 02/NA, dated 8 July 2009, 
the local content requirements have been eliminated. 
Please see the copy of the Law on Investment Pr omotion which has been provided to the WTO 
Secretariat (see document WT/ACC/LAO/18/Add.1). WT/ACC/LAO/18 
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 Question 3 
In paragraph 21, Lao PDR notes that invest ment applications for concession agreements 
(Category 3) and large-scale projects (over US$20  million), especially those involving the use of 
natural resources, were forwarded to the Govern ment for approval rather than the Committee 
for Promotion and Management of Investment (C PMI).  Lao PDR also notes that the investor 
should receive a written response within 15 working days for Category 1 projects; 25 working 
days for Category 2 projects; and 45 working days for Category 3 projects. 
We remain interested in information on the ti meframes for large-scale projects and who they 
would need to be approved by. 
Answer:
 
The timeframe for approval of large-scale projects is not more than 45 working days from the date of 
receipt of the application and the approving author ity is the Prime Minister's Office through the one 
stop service at the Ministry of Planning and Investment. 
- State Ownership and Privatization 
Question 4 
In WT/ACC/LAO/17, in Lao PDR response to Question 3, it explains that the Government 
intends to retain a 51 per cent ownership stake in  the remaining the 37 enterprises "until such 
time as it consider feasible to reduce its stake." 
Can Lao PDR please explain what factors or criteri a it will use in determining the feasibility of 
reducing its ownership in these 37 enterprises? 
Answer:  
As provided for in Factual Summary JOB(07)/160/Rev. 2, paragraph 30; the factors in retaining the 
51 per cent ownership in the remaining SOEs w ould pertain to importance of national security, 
defense, and economic a nd social development. 
Lao PDR wishes to highlight that its SOE sector is small, with limited contribution to economic 
growth.   
Please refer also to the responses to Questions 5 and 6. 
Question 5 
Does Lao PDR have any sense of timing on when it might be able to reduce its share of the 
existing SOEs? 
Answer:  
Please see the response to Question 3 of WT/ACC/LAO/17. Question 6 We understand that, under Lao PDR's sixth five-y ear development plan (2006-2010), the State 
sector will continue to be the leading sector in economic development.  Please explain to what  WT/ACC/LAO/18 
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 extent these SOEs play a role in the implemen tation of Lao PDR's industrial policies, and 
describe the financial relationship between the Government and the SOEs. 
Answer:  
The 37 SOEs provided for in Table 5 of Factual Su mmary play a limited role in the national economy 
with less than 15,000 employees in total and represen ting only about 0.2 per cent of total Government 
revenue in  2008.  The Government encourages SOEs to be self sufficient and competitive. 
- Pricing Policies  
Question 7 
We request that the following commitment be  added after paragraph 33 in the Factual 
Summary: 
"xx.  The representative of Lao PDR confirmed th at pricing policy (including price controls) in 
Lao PDR would be applied in compliance with the WTO Agreement, including Article III:4 and 
XI:1 of the GATT 1994, Article VIII of the General Agreement on Trade in Services (GATS), 
and Article 4 of the Agreement on Agriculture.  He  further confirmed that, to this end, in the 
application of price controls, Lao PDR would ta ke account of the interests of exporting WTO 
Members as provided for in Article III.9 of the GATT 1994.  Lao PDR would publish the list of 
goods and services subject to State price control and any changes to this list in its Official 
Gazette and would continue to do so after acce ssion.  The Working Party took note of these 
commitments." 
Answer:  
Lao PDR suggests 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 measures in a WTO-consistent fashion, and take account of the 
interests of exporting WTO Members as provided fo r in Articles III.4 and III.9 of the GATT 1994, 
and Article 4 of the Agreement on Agriculture, a nd in Article 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." 
Question 8 
Paragraphs 31-33 of the Factual Summary:  Lao PDR has in place a system of maximum prices 
for fuel, gas, steel and cement.  Lao PDR has stated in its answers that Article III:9 of the GATT 
1994 is respected by taking into account the int erests of exporting countries.  That is not the 
only obligation imposed by Art III of the GATT 1994.   If max prices are set at such a low level 
that that the sale of imports becomes more diffi cult than for domestic products, imports would 
be subject to less favourable treatment, possibly in violation of Art III:4 the GATT 1994.  
Answer:  
See the response to Question 7. WT/ACC/LAO/18 
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 Question 9 
Lao PDR has in place a system of maximum prices for fuel, gas, steel and cement. (Table 6(a)). 
Could Lao PDR clarify under which criteria those prices are set? 
Answer:
 
In addition to paragraphs 32-33 of the Factual Summary (JOB(07)/160/Rev.2), the criteria used are 
the supplier's costs and profit margin which is guided by the consumer price index. 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government Question 10 We request that the following commitment be  added after paragraph 41 in the Factual 
Summary: 
"xx.   The representative of Lao PDR confirmed that the current Constitution, Laws and 
regulations provide the necessary institutional ba se for the prompt administrative and judicial 
review of the Government's actions.  He furthe r confirmed that from the date of accession Lao 
PDR's laws would provide individuals or enterp rises 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 Agreement 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.  To this end, the procedur es for appeal would cover actions relating to the 
implementation of national treatment, confor mity assessment, and the regulation, control, 
supply or promotion of a service (including the grant or denial of a licence to provide a service 
and other matters), and the tribunals responsibl e for such reviews would be impartial and 
independent of the agency entrusted with admi nistrative enforcement and would not have any 
substantial interest in the outcome of the matter.  Notice of the decision on appeal would be 
given to the appellant and the reasons for such a decision would be provided in writing.  The 
Working Party took note of these commitments."  
Answer:
 
Lao PDR suggests the following commitment language: "Lao PDR confirms that the current constituti on, laws and regulations  provide the necessary 
institutional base for the prompt administrative and j udicial review of the administrative actions.  Lao 
PDR further confirms that from the date of a ccession its laws and regul ations would provide 
individuals or enterprises affected by any admini strative action subject to WTO provisions, the right 
to appeal such action to the courts or other inde pendent 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 Agreem ent on Implementation of Article VII of the 
GATT 1994, Article 62 of the Agreement on Trade-Re lated Aspects of Intellectual Property Rights 
and Article VI of GATS.  The Working Party took note of these commitments."  WT/ACC/LAO/18 
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 Question 11 
We request that paragraph 44 in the Factual Summary be modified to reflect the following 
commitment: 
"44.  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 in the 16 provinces and 
Vientiane Capital, special economic zones, a nd other areas where special regimes for tariffs, 
taxes and regulations were established ensure that the sub -central authorities comply with 
WTO  obligations .  Law No. 50/NA "On the Office of the Public Prosecutor" of 21 October 2003 
provided the legal redress to companies facing an  apparent breach of WTO obligations by sub-
central authorities.  He further confirmed that when appraised or alerted of a situation where 
WTO provisions were not being applied or were  applied in a non-uniform manner, central 
authorities would act to enforce WTO provisions wi thout requiring affected parties to petition 
through the courts.  The Working Party took note of these commitments. " 
Answer:  
Lao PDR suggests the following commitment language: "Asked how the central authorities might address compla ints 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 regimes for tariffs, taxes and regul ations 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 obliga tions by sub-central authorities.  He further 
confirmed that when informed of a situation wher e WTO provisions were allegedly not being applied 
or were applied in a non-uniform manner, central aut horities would investigate such claims and, if the 
charges were found to be valid, act to enforce WTO provisions without requiring affected parties to 
petition through the courts.  The Working Party took note of these commitments." 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 12 Paragraph 45 explains that the place of registratio n can be the ministerial, provincial, or district 
level.  It further notes that the registration documentation requirements and evaluation criteria 
are "the same at the ministerial and provincial levels." 
Are the registration documentation requirements a nd evaluation criteria also the same at the 
district level?  If not, can Lao PDR please explain how they differ?  Further, why is there a difference between the ministerial and provincial levels' registration requirements?  
Answer:
 
The National Assembly passed th e Enterprise Law No. 11/NA, on 9 November 2005, superseding the 
Business Law of 1994, with a view to furthe r improving the business environment.  The Law 
regulated the establishment, management and operati on of enterprises in Lao PDR.  The Enterprise WT/ACC/LAO/18 
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 Law is applicable throughout Lao PDR's entire cust oms territory, including its special economic zones 
and other areas where special regimes for tariffs, tax es and regulations were established.  Under the 
new Law the business registration procedure has been  updated, where the enterprise registration can 
be undertaken at two levels, following the sa me registration documentation requirements and 
evaluation criteria: 
1. Central level - at Internal Trade Department  (ITD), Ministry of Industry and Commerce; and 
2. Provincial level - at provincial and Vien tiane Capital Industry and Commerce Offices. 
Therefore, the district level no longer has the aut hority to issue enterprise registration.  Please update 
the Factual Summary paragraph 45 accordingly . 
Question 13 
With respect to the registration requirements to engage in importation and exportation, 
paragraph 46 of the Factual Summary states that  "the administrative fees for the registration 
forms, company stamp form, and for typing the reg istration certificate was set at KN 132,000."   
Please confirm whether this cost reflects the approximate costs of the services described. 
We request that Lao PDR please make a commitment that the registration fees for importers 
and exporters reflect the cost of  the services rendered and that  these fees will conform with 
WTO requirements by Lao PDR's date of accession. 
Answer:
 
See the response to Question 27. 
Question 14 
Paragraph 47 of the Factual Summary notes that  "enterprises engaging in trade for commercial 
purposes imported or exported the goods for wh ich they had registered", and that these goods 
"were listed in their business certificates."  To expand the scope of what can be imported, a trading enterprise must "submit an applicatio n to the Enterprises Registry Office of the 
Internal Trade Department of the Ministry of Industry and Commerce". 
Please explain why enterprises that engage in th e importation of goods may only import goods 
for which they had registered.  What is the purpose  of listing goods on the business certificate?  
Is this requirement equally applied to domestic and foreign firms? 
Answer:
 
Enterprises need to have listed in their business regi stration the goods that they intend to import, the 
scope of which is expanded automatically provided that they fulfil the conditions for the particular 
products.  For example, the importation of ph armaceutical products requires pharmaceutical 
qualifications within the company or by the natural person.  The conditions are applicable to foreign 
and domestic firms equally.  WT/ACC/LAO/18 
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 Question 15 
What criteria are used to determine if a compan y can import the specific products for which it 
is registering?  Are the criteria the same for do mestic and foreign firms?  How long does this 
initial registration process take? 
How is it decided whether a good listed in a bus iness certificate is the same as the one being 
imported?  
Answer:  
See the response to Question 14.  In addition under the Article 3 of the Prime Mi nister's Decree implementing the Enterprise Law 
No. 68/PM dated 28 April 2008, the business registra tion process takes ten working days, and may be 
extended for another three working days.  
The decision whether a good listed in a business certificate is the same as the one being imported is 
undertaken by customs officials at the border checkpoint. 
Question 16 
Is permission to expand scope automatically gr anted upon an application to expand the scope, 
or are there criteria used to determine if a co mpany can expand the scope of its imports?  If 
specific criteria are used, what are they, and are th ey the same for domestic and foreign firms?  
How long does it take for these applications to be approved? 
Answer:
 
See the responses to Questions 14 and 15. 
Question 17 
In Question 6, WT/ACC/LAO/17, Members requested information on the changes Lao PDR will 
be making to bring its regime into compliance with its WTO trading rights obligations, given 
that currently a Lao product may be sold directly  to a customer, whereas an imported product 
may not be so sold because it must first be imported by a Lao company or a foreign company 
with domestic presence.  This is not consistent  with Lao PDR's trading rights obligations under 
Article III of the GATT 1994, which requires that th e imported product ha ve access to the same 
channels of distribution as the like domestic product, with no requirements or conditions 
imposed on such importation unless they are also  imposed on the domestic like product.  Lao 
PDR needs to explain how its regime is being chan ged to ensure to meet this obligation.  The 
current reply only addresses individuals and legal entities that have commercial presence in Lao 
PDR, and does not fully answer the question.   
What specific steps is Lao PDR taking to ensu re its trade regime allows foreign (legal or 
natural) persons the opportunity to directly import products for a customer in Lao PDR 
without first establishing domestic presence? 
Answer:  
The amendments to the Decree on Import and Export Management No. 205/PM, dated 
11 October 2001, are currently being drafted with a view to bringing Lao PDR's trade regime in WT/ACC/LAO/18 
Page 8  
 
 conformity with the trading right obligation.  The De cree is expected to be adopted by the end of 2010 
and it will be followed by Implementing Regulations which are expected to be adopted by the end 
of 2011.  See the revised Legislative Action Plan (WT/ACC/LAO/9/Rev.4).   
Technical assistance on this issue has been received from development partners , and consultation with 
businesses has taken place.  
Question 18 Paragraph 49 notes that only those foreign fi rms which are "physically present" in Lao PDR 
may enjoy the same rights to import as domestic firms.  The reply to Question 6 in WT/ACC/LAO/17 further explains that the Decree on Import and Export Management 
No. 205/PM of 11 October 2001 provides for individuals and legal entities who have commercial 
presence in Lao PDR by virtue of the Law on th e Promotion of Foreign Investment, No. 11/NA, 
and therefore categorized as investors, to engage in import and export activities; and that the 
Enterprise Law No. 11/NA also allows foreign investors who have commercial presence to 
engage in import and export activities.  We app reciate that this legislation has been provided to 
the Working Party for review. 
What additional legislation, if any, prohibits non-residents from importing or exporting goods, 
or registering as an importer of record? 
If any legislation exists that prohibits non-residents from importing or exporting or registering 
as an importer of record, what steps is Lao PDR ta king to bring it into conformity with its WTO 
obligations? 
We request that Lao PDR please develop an action plan to include specific dates by which it will 
replace or amend its existing legislation concernin g trading rights, to bring it in line with WTO 
obligations. 
Answer:
 
See the response to Question 17. 
Question 19 
The reply to Question 6 in WT/ACC/LAO/17 explains that Lao PDR is undertaking 
consultations with relevant stakeholders concerning trading rights. 
What stakeholders has Lao PDR consulted with , and what has been the outcome of these 
consultations?  Does Lao PDR intend to  engage in further consultations?  
What additional steps is Lao PDR taking to bring its trade regime in line with WTO obligations 
concerning trading rights? 
As appropriate, we request that the Secretaria t please update the Factual Summary to reflect 
the information provided by Lao PDR in reply to Question 6, in the opening paragraphs of the 
section (before or after paragraph 45). 
Answer:  
See the response to Question 17.   WT/ACC/LAO/18 
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 Question 20 
Question 7 in WT/ACC/LAO/17 and paragraphs  45-49 of the Factual Summary:  Lao PDR 
confirmed that foreign firms had the same rights  to import as Lao firms provided the foreign 
firms were "physically present" in the country, i. e. registered as an import and/or export 
enterprise in accordance with relevant laws and regulations of Lao PDR.  To date, Lao PDR 
does not provide for registration as importers or exporters of firms or individuals located 
outside the country.  During the last meetings, and again in the written rep lies, Lao PDR notes it 
is undertaking consultations with relevant stakeholders.  
Could Lao PDR explain the result of the related consultations with stakeholders?  Could Lao PDR share with Members any proposed amendments to its legislation on trading 
rights? 
Answer:
 
See the response to Question 17. 
Question 21 
Factual Summary:  Paragraph 49 and Quest ion 7, WT/ACC/LAO/17:  We note in 
paragraph 49, that Lao PDR does not at presen t provide for registration as importers or 
exporters of firms or individuals located outs ide the country, and that firms had to be 
"physically present" in Lao PDR. 
Lao PDR has noted that it would undertake co nsultations with stakeholders regarding this 
issue.  We would be interested in the outcomes of these consultations.  
Answer:  
See the response to Question 17. 
A. IMPORT REGULATIONS 
- Other duties and charges Question 22 We request that paragraph 52 in the Factual Summary be modified to reflect the following 
commitment: 
The representative of Lao PDR said that, other than ordinary customs duties, Lao PDR did not 
levy any "other duties and charges" in the meaning of Article II:1(b) of the GATT 1994.  He 
confirmed that Lao PDR would not introduce new "other duties and charges".  He further 
confirmed that Lao PDR will bind "other duties and ch arges" as defined in Article II:1(b) of the 
GATT 1994 at zero in its Goods Schedule.  The Working Party took note of these 
commitments."  
Answer:  
Lao PDR accepts the proposed commitment language. WT/ACC/LAO/18 
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 Question 23 
Paragraph 52 of the Factual Summary:  We note that Lao PDR indicates in paragraph 52 that it 
does not levy other duties and charges (ODCs) within the meaning of Article II:1(b) of the GATT 1994.  Moreover, at the Fifth Meeting of the Working Party Lao PDR announced that it would commit to binding ODCs at zero.  
We look forward to Lao PDR including commitmen t language on ODCs to this effect in the 
Factual Summary of Points Rai sed/Draft Working Party Report.  
Answer:
 
See the response to Question 22. 
- Tariff rate quotas, tariff exemptions 
Question 24 
Question 8 in WT/ACC/LAO/17 and paragraph 55 of the Factual Summary:  Lao PDR states 
that investors for promoted sectors are entitled to  a 1 per cent tariff as an investment incentive 
under the Law on Promotion of Foreign Investment.   
Please clarify which particular provisions of  the Investment Promotion Laws and/or 
implementing decrees provide for this particular investment incentive. 
Answer:  
The one per cent import duties incentive is no longer applicable. Presently, under Article 52 of the new Law on Inve stment Promotion No. 02/NA, dated 8 July 2009, 
the incentives are that the import of equipment, ra w material and vehicles directly used for production 
are exempted from import duties.  In addition, the provision to fulfill the local content requirement to 
avail of the import duties exemption is eliminated. 
Question 25 
We request that the following commitment be  added after paragraph 55 in the Factual 
Summary: 
"xx.   The representative of Lao PDR confirme d that any tariff rate quota maintained or 
introduced after the date of accession would be  applied and administered in conformity with 
WTO rules, including MFN and national treatment provisions.  The Working Party took note of 
this commitment."   
Answer:
 
Lao PDR accepts the proposed commitment language.  WT/ACC/LAO/18 
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 - Fees and charges for services rendered 
Question 26 There are a number of different fees and charges for services rendered discussed in 
paragraph 56 of the Factual Summary and th e reply to Question 9 of WT/ACC/LAO/17.   
We appreciate the updated information on specifi c fees that was provided in the reply to 
Question 9, and ask that the Secretariat pl ease update the Factual Summary with this 
information.   
We thank Lao PDR for reforming the 0.01 per cent inspection fee on imported fuels, steel bars, 
and cement.  Lao PDR noted that new regulations removing these ad valorem  fees would be 
adopted by 2009.  What is the status of these new regulations? 
Answer:
 
The ad valorem inspection fees for fuel, steel bar and cement  were converted to the specific rate 
following the adoption of the Regulation No. 1226/PMO-NAST, dated 17 July 2009.  
In addition, the ad valorem inspection fees for food were also converted to the specific rate following 
the adoption of the Presidential Decree on Fees and Service Charges No. 03/PO dated 
19 November 2008, which replaced the Presidential Decree on Fees and Services Charges No. 02/PO 
dated 27 November 2002.  
Question 27 
We also appreciate Lao PDR's confirmation in reply  to Question 9 that its fees and charges for 
services related to imports and exports will be applied in conformity with the relevant provisions of the GATT 1994.  We request that  Lao PDR make a commitment that from the 
date of accession any fees or charges imposed on or in connection with importation and 
exportation will be applied in accordan ce with Article VIII of the GATT 1994. 
Answer:
 
Lao PDR accepts that from the date of accession an y fees or charges imposed on or in connection 
with importation and exportation will be applied in accordance with Article VIII of the GATT 1994.    
- Application of internal taxes to imports 
Question 28 
We appreciate that Lao PDR is currently converting from a turnover tax to a value added tax.  
The current bifurcated system risks some discri mination, and we would appreciate additional 
information on when Lao PDR will have a unified taxation system. 
Answer:  
Lao PDR confirms that the Value Added Tax has been entered into force since 1 January 2010 
following the adoption of the Value Added Ta x Law No. 04/NA, dated 26 December 2006 and the 
Decree Implementing the VAT Law No. 270/PMO, da ted 18 September 2009.  Lao PDR is reviewing 
and amending the Tax Law, including provisions on the turnover tax with a view to gradually 
ensuring the tax system complies with Article III of the GATT 1994 upon accession to the WTO. WT/ACC/LAO/18 
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 See also the response to Question 29. 
Question 29 
We request that the following commitment be  added after paragraph 60 in the Factual 
Summary: 
"xx.   The representative of Lao PDR confirme d that, from the date of accession, all laws, 
regulations and other measures relating to intern al taxes and charges levied on imports would 
be in full conformity with its WTO obligations, including Article III of the GATT 1994.  The Working Party took note of this commitment." 
Answer:
 
Lao PDR accepts the proposed commitment language. Question 30 
Paragraph 60 of the Factual Summary and Ques tion 11 of Additional Questions and Replies :  
We appreciate the information from Lao PDR that  it intends to replace the turnover tax with a 
value added tax (VAT) by October 2009 and that due to the complexity of the change the concurrent application of VAT and turnover t ax would continue to apply for some time. 
We appreciate the efforts of Lao PDR to ensure that its tax regime will be consistent with WTO 
obligations and look forward to continui ng to receive information concerning the 
implementation of the VAT system. 
Answer:
 
See the responses to Questions 28 and 29.  
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 31 
With regard to Table 8: Import Prohibitions, it appears that Lao PDR has not yet completed 
updating the table to reflect the proper HS codes and relevant authorities.  We request that Lao 
PDR please update the table with this information. 
Answer:  
To implement the Decree on Import Licensing Pro cedures No. 180/PMO, dated 7 July 2009, Lao 
PDR issued the Notification on Goods Requiring Non-Automatic Import and Export Licensing No. 2151/MOIC.DIMEX, dated 30 October 2009, to  replace Notification No. 1376/MOIC.DIMEX.  
See also a copy of the Decree on Import Licensing Procedures which has been provided to the WTO 
Secretariat (WT/ACC/LAO/17/Add.3). 
Question 32 
Paragraph 62 of the Factual Summary notes that  "licensing procedures were implemented by 
the trade offices in Vientiane Capital and in the provinces."  Are the trade offices in the  WT/ACC/LAO/18 
 Page 13 
 
 
 provinces run by the Central Government, or do the provincial governments have their own 
trade offices?   
Answer:  
The laws and regulations governing import licensi ng procedures as promulgated in the Decree on 
Import Licensing Procedures No. 180/PMO dated 7 July 2009 are implemented uniformly throughout 
the entire territory of Lao PDR.  Each administra tive entity in Lao PDR implements these procedures, 
i.e. at the central level by the Department of Import and Export under the Ministry of Industry and Commerce and at the provincial level by Vientia ne Capital and Provincia l Industry and Commerce 
Offices (formerly referred to as trade offices).  
Question 33 
We appreciate the information provided in reply to Question 12, that MOIC is consulting with 
line ministries to streamline and shorten the list of goods subject to import licensing procedures.   
What is the current status of this effort? We request that the Secretariat please update th e Factual Summary with this information, as 
appropriate.   
Answer:
 
See the response to Question 31.  In addition, please  note that Lao PDR is currently preparing the list 
of goods subject to automatic licensing to implement the Decree on Import Licensing Procedures No. 180/PMO, dated 7 July 2009.  
When ready this list will be posted in MOIC webs ite.  Presently, the non-automatic licensing list has 
already posted in the website of Ministry of Industry and Commerce:  www.moic.gov.la. 
Question 34 Similarly, paragraph 63 of the Factual Summary notes that the list of controlled goods is under 
review with a view to consolidating them.  What is the status of this review?  
Answer:
 
See the responses to Questions 31 and 33. Question 35 The list of controlled goods for the Ministry of Information and Culture, which is described in 
paragraph 63, is not included in Table 9.  We request that Table 9 be updated to reflect any 
goods subject to import or export control by this or other Ministries. 
Answer:
 
See the responses to Questions 31 and 33. WT/ACC/LAO/18 
Page 14  
 
 Question 36 
We appreciate the information provided in Tabl e 9, "Goods Subject to Import Licensing", but 
note that the columns for "HS Code", "Minis try or Agency Responsible for Export/Export 
Control", and "Fees for Import Licence" are current ly blank.  We request that Lao PDR please 
provide this information, or please explain why it  is not applicable to specific products listed in 
the table. 
Answer:
 
See the response to Question 31.  
Question 37 
We appreciate the updated information on the dr aft Decree on Import Licensing Procedures 
provided in the reply to Question 12.   
What is the status of the implementing regulations for this Decree? Please provide information on what will be add ressed in the implementing regulations for this 
Decree. 
Answer:
 
See the response to Question 31. 
Question 38 
Paragraph 66 of the Factual Summary notes that an action plan for conformity with the 
Agreement on Import Licensing Procedures is und er preparation.  What is the status of this 
action plan? 
Answer:  
There is no need for an action plan as Lao PDR is already adhering to the Agreement on Import 
Licensing Procedures. 
Question 39 
Paragraphs 61-63 of the Factual Summary and Question 12 of Additional Questions and 
Replies:  We thank Lao PDR for the informatio n provided in paragraph 61 and Table 8 on the 
five product groups subject to import prohibitions. 
We look forward to receiving additional inform ation on the HS codes when the list is revised 
and reduced. 
Answer:  
See the response to Question 31.    WT/ACC/LAO/18 
 Page 15 
 
 
 Question 40 
In paragraph 62, Lao PDR provides information on  import licensing, and notes that existing 
regulations do not establish specific timefram es for the processing of import licensing 
applications, which depended on the nature of the imported product. 
Does Lao PDR have any general timeframes, such  as minimum or maximum periods, by which 
import licensing applications should be processed? 
Answer:  
The Decree on Import Licensing Procedures No. 180/PM , dated 7 July 2009, Article 6.3 stipulates 
that the application shall be processed immediately with maximum of ten working days for automatic import licensing.  In the case of non-automatic licensing the maximum is thirty working days. 
See a copy of the Decree on Import Licensing Procedures which has been provided to the WTO 
Secretariat (WT/ACC/LAO/17/Add.3). 
Question 41 
We thank Lao PDR for the information provided in Table 9 (referred to in paragraph 63) 
concerning goods subject to import licensing. 
We see that the lists of controlled goods were currently under review with a view to 
consolidating them and would be interested in fu rther information on the status of the review. 
We would also be interested in how decisions are arrived at on products to be included on the 
lists, for example in relation to food pro ducts and items such as silver and gold. 
We would also be interested in further informat ion on the import licensing procedures involved 
in the importation of agricultural produc ts and items such as silver and gold. 
Answer:
 
See the response to Question 31. The considerations whether or not the products are in cluded in the lists are provided for in Articles 6.4 
for automatic licensing and Article 7.4 for non-auto matic licensing of the Decree on Import Licensing 
Procedures No. 180/PM, dated 7 July 2009.  
The import licensing procedures for these products are provided for in the Decree on Import 
Licensing Procedures No. 180/PM, dated 7 July 2009. 
Specifically, for the importation of gold and silver  the Decree Law on the Management of Foreign 
Exchange and Precious Metals No, 01/OP , dated 17 March 2008 is also applied. 
Question 42 
We note also in paragraph 63, that relevant auth orities can elaborate their own detailed lists of 
goods subject to import or export control. 
We would be grateful for information on the process and how authorities develop their lists. WT/ACC/LAO/18 
Page 16  
 
 Answer:
 
The process to develop the lists of goods subject to import and export control is provided for in 
Articles 6.4 for automatic licensing and Article 7.4 for non-automatic licensing of the Decree on 
Import Licensing Procedures No. 180/PM, dated 7 July 2009. 
Question 43 
Question 12 in WT/ACC/LAO/17 and paragraphs  61-66 of the Factual Summary:  Lao PDR 
announced the adoption of a new Decree on Import Licensing, which is meant to adapt Lao's current regulation to the requirements set out in the WTO Import Licensing Procedures 
Agreement. 
Could Lao PDR Lao indicate where Members can consult this new Decree? 
Answer:
 
See the copy of the Decree on Import Licensing Pr ocedures No. 180/PM, dated 7 July 2009 which has 
been provided to the WTO Secretariat.  (WT/ACC/LAO/17/Add.3). 
Question 44 
Could Lao PDR indicate how this new Decree covers the provisions set out in Article 2.2(b) of 
the Agreement on Import licensing Procedures wh ich allows automatic import licensing to be 
maintained "as long as the circumstances which gave  rise to its introduction prevail and as long 
as its underlying administrative purposes canno t be achieved in a more appropriate way"? 
Answer:  
The last paragraph of Article 6 of the Decr ee on Import Licensing Procedures, No. 180/PM, dated 
7 July 2009, addresses the provisions set out in Ar ticle 2.2(b) of the Agreement on Import Licensing 
Procedures.  A copy of the Decree is availabl e from the WTO Secretariat (WT/ACC/LAO/17/Add.3). 
- Customs valuation 
Question 45 We appreciate Lao PDR's submission of  the Prime Minister's Decree No. 362/PM, 
implementing the Customs Law, to the Working Party for review.  However, contrary to the 
information in paragraph 68 of the Factual Summa ry, Article 4 of this Decree does not appear 
to establish the hierarchy of valuation methodol ogies in the Customs Valuation Agreement.   
We request that Lao PDR please explain the specific steps it is taking to implement: - The valuation hierarchy established in the CVA; 
- The interpretive notes of the CVA, in line with Article 14 of the CVA; and - The due process requirements of the CVA (eg., the ability for suppliers to receive 
written information on how customs value was determined; right of appeal; etc).   
Answer:
 
Lao PDR respectfully is of the view that Article 4 of the Decree which elaborates Article 13 of the 
Customs Law of 2005, does establish a hierarchy of va luation methods:  the article explicitly refers to  WT/ACC/LAO/18 
 Page 17 
 
 
 Article VII of the GATT 1994, enumerates - from 1 to  6 - the six methods of the CVA, and indicates 
that these are "applied in successive order".  Lao PD R remains available for any further clarifications. 
The interpretive notes of the CVA will be included in  the Ministerial Instruction to implement the 
Decree No. 362/PM, which is expected to comple te by the end of 2011.  Lao PDR will fully 
implement the CVA by the end of 2012.  See the CVA Action Plan (WT/ACC/LAO/12/Rev.2).  
The right of appeal is specified in Article 29 of the Customs Law No. 05/PM, dated 20 May 2005 and 
Article 9 of the Prime Minister's D ecree No. 362/PM, dated 19 October 2007.  
Question 46 
We are concerned that Lao PDR intends to estab lish a price-reference database.  As has been 
noted, previous guidance from the Technical Committee on Customs Valuation indicates that 
value databases are to be used exclusively as a risk assessment tools and not as a substitute of 
value or to establish minimum values. 
We request that Lao PDR please explain why it n eeds to develop a price-reference database if it 
does not currently employ one.  Development of a database would divert its scarce resources to 
that endeavour, which in effect hinders its accession commitments. 
We request that Lao PDR please provide assurances that, if indeed a value database is 
developed, that it will be exclusively used as a risk assessment tool. 
Answer:  
The database is undergoing a phase-out process.   Paragraph 69 of the Factual Summary says 
that the database of minimum va lues will be used until 2011, but  it will be gradually phased 
out according to action plan; and then from the end of 2012 the CVA will be fully applied.  
This means that reference price lists will no l onger be used after CVA is fully applied.  Lao 
PDR assures that the value database will be ex clusively used as a risk assessment tool for 
addressing customs fraud. 
Question 47 
Paragraphs 67-71 of the Factual Summary:  Could Lao PDR please explain why the risk 
management system will be focussed solely on the use of the transaction value method, as it 
seems? 
Answer:  
Risk management is undertaken specifically on the use of the transaction value as Lao PDR has 
experienced many cases of customs frauds where the value declared by the importers is under-invoiced.  
See also paragraphs 70 and 71 of the Factual Summary. 
- Rules of origin 
Question 48 Paragraph 73:  We are currently reviewing the rules of origin and customs valuation sections of 
the Implementation of the Customs Law, Decree  No. 362/PM.  In this same paragraph, Lao WT/ACC/LAO/18 
Page 18  
 
 PDR notes that a regulation is being prepared to  elaborate further on the implementation of 
Article 2(h) and paragraph 3(d) of Annex II of the Agreement on Rules of Origin. 
We request that Lao PDR please provide an update  on the status of this regulation, and also 
provide a draft of this regulation to the Workin g Party when it is ready for Member review. 
Answer:
 
Lao PDR adopted the Decree on Rules of Origin of Goods No. 228/PMO, dated 22 April 2010 
replacing Decree on the Management of the Use of Certificate of Origin No. 97/PMO, dated 8 December 1992.  The new Decree incorporates provisions of the Agreement on Rules of Origin, including Article 2(h) and paragra ph 3(d) of Annex II.  A copy of the Decree is available from the 
WTO Secretariat (see document WT/ACC/LAO/18/Add.1). 
Question 49 Decree on Rules of Origin of Goods, Article 7:  Simple manufacturing or processing operations:  
What is meant by "simple mixing of products "?  Does Lao PDR define this anywhere?  For 
example, what if two chemicals are mixed which results in a chemical reaction.  Would this be origin conferring? Is this referring to mere diluti on with water or another substance that does 
not materially alter the characteristics of the good? 
Answer:
 
"Simple mixing of products" refers to where one or  more components of the mixture do not meet the 
conditions to enable them to be considered as originating products ; and mere dilution with water or 
another substance that does not materially alter the characteristics of the product.  
Question 50 
What is meant by "simple assembly of parts"?  Is there a threshold number of parts, above 
which assembly moves from simple processi ng to substantial transformation?   
Answer:  
Simple assembly of parts refers to simple manufacturing or processing operations that are deemed to 
be simple and shall not be taken into considerati on when determining the country of origin of goods. 
Question 51 Articles 16 and 19:  Administration of origin of  goods:  Included in the list of bodies that are 
considered origin administration agencies, Lao PDR lists "relevant sectors."  What role specifically would the certain sectors play in th e administration of origin of goods?    
Answer:
 
The role of relevant sectors is provided for in Ar ticle 19 of the Decree on Rules of Origin of Goods 
(see document WT/ACC/LAO/18/Add.1). 
Question 52 
2005 Customs Law:  Article 11 of Customs Law No. 05/NA states:  "country of origin of 
imported goods can be correctly determined only if there is a certificate of country of origin and  WT/ACC/LAO/18 
 Page 19 
 
 
 the goods are directly delivered from the countr y of origin to the importing country in 
accordance with regulations."  
- Could Lao PDR please elaborate on the meaning of this provision?  Does this mean that 
Lao PDR will not accept a good's declaration of origin unless it is shipped directly to Lao PDR from the declared country of origin? 
- How should this provision be interpreted, given Article 13 of the Customs Law 
Implementing Decree, which identifies only certain cases in which a certificate of origin must be provided? 
Answer:
 
The elaboration is provided for in the Decree on Rules of Origin of Goods.  
Article 13 of the Decree implementing the Customs Law only refers to temporary import of vehicles.  
Question 53 
Article 11 also states that the Government may issue regulations regarding the determination of 
origin.  Is the Decree on the origin of import a nd export goods considered to be the regulations? 
Answer:  
The regulation referred to in Article 11 of the Customs Law is the Decree on Rules of Origin of 
Goods.  
- Pre-shipment inspection 
Question 54 With respect to paragraph 75 of the Factual Su mmary, we appreciate the information that Lao 
PDR is no longer pursuing a pre-shipment inspect ion system.  We request that the following 
commitment be added after paragraph 75 in the Factual Summary: 
"xx.   The representative of Lao PDR confirme d that if preshipment inspection requirements 
were introduced, they would be temporary a nd in conformity with the requirements of 
the Agreement on Preshipment Inspection and other WTO agreements.  He further confirmed 
that Lao PDR would ensure that such enterprise s operating on its behalf complied with the 
provisions of WTO agreements including the Agreem ents on Technical Barriers to Trade, the 
Application 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 Measu res, Safeguards, and Agriculture.  To this 
end, the establishment of charges and fees would be consistent with Article VIII of the GATT 1994 and Lao PDR would ensure that the due  process and transpa rency requirements of 
the WTO Agreements, in particular 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 note 
of these commitments." 
Answer:
 
Lao PDR suggests the following commitment language: WT/ACC/LAO/18 
Page 20  
 
 "The representative of Lao PDR confirmed that  if preshipment inspection requirements were 
introduced, they would be temporary and in confor mity with the requirements of the Agreement on 
Preshipment Inspection and other related WTO ag reements.  He further confirmed that the 
establishment of charges and fees would be consis tent with Article VIII of the GATT 1994 and Lao 
PDR would ensure that the due process and transpar ency requirements of the WTO  Agreements, in 
particular Article X of the GATT 1994, would be app lied.  He also confirmed that decisions by such 
firms could be appealed by importers in the sa me way as administrative decisions taken by the 
Government of Lao PDR.  The Working Party took note of these commitments." 
B. EXPORT REGULATIONS 
Question 55 
Question 15, and paragraphs 77-81 of the Factual Summary:  Lao PDR notes that given the 
significance of export duties' revenues, it need s "to continue to avail itself of these measures".  
Could Lao PDR indicate the amount of revenues obta ined from actually applying export duties?  
Answer:
 
As for revenues from exports, the duties are outlined in Table 1 of the Factual Summary and amount 
on average is about 43 billion kip per year, equiva lent to around 1 per cent of Government revenue. 
Question 56 
The following sub-question included as part of Question 15 was not replied, and therefore, we 
raise it again:  Could Lao PDR confirm that it is committed not to apply export duties on products which are not included in Table 10 of JOB(07)160/Rev.2? 
Answer:
 
Lao PDR reiterates its need to continue to avail it self of the use of export duties.  However, Lao PDR 
confirms that it will comply with all disciplin es in the GATT 1994 and WTO Agreements as regards 
to export duties.  
- Export restrictions 
Question 57 
As regards export restrictions:  Could Lao PDR please further explain why the export ban on 
log can be considered as "relating to the conservation of exhaustible resources"? 
Answer:  
See the response to Question 16 of WT/ACC/LAO/17.  To reiterate, there is a logging and export ban 
on logs from natural forests to conserve these resourc es, in a manner consistent with Article XX(g) of 
the GATT 1994.  Logging and exports of logs  from farmed plantations is permitted. 
Question 58 Paragraph 81 of the Factual Summary and Questio n 16 of Additional Questions and Replies:   
We thank Lao PDR for the information provide d in Tables 11 (export restrictions) and 12 
(goods subject to export licensing).  We note, in  paragraph 81, that these lists continued to be  WT/ACC/LAO/18 
 Page 21 
 
 
 under review.  We would be interested in addition al information on export licensing procedures 
and how the granting of export licenses is determined. 
Answer:  
Please refer to the Decree on Import Licensing Procedures No. 180/PMO, dated 7 July 2009 and the 
Notification on Goods Required Non-Au tomatic Import and Export Licensing 
No. 2151/MOIC.DIMEX, dated 30 October 2009.  A c opy of the Decree and Notification is available 
from the WTO Secretariat (see documents WT/ACC/LAO/17/Add.3 and WT/ACC/LAO/18/Add.1). 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 59 
In paragraph 85 of the Factual Summary, Lao P DR states that the Government had formulated 
an Industry-Handicraft Development Plan for th e period 1996-2005 covering various industrial 
sectors including, among others, the manufacturing, textiles and construction materials industries. 
We understand based on public information th at other industrial development programmes 
exist.  Please describe the nature of these programmes and explain whether these programmes 
will be included in the subsidy notification that Lao PDR will submit for the Working Party's review. 
Answer:
 
The Industry-Development Plan referred to is a polic y paper that identifies areas that the Government 
seeks to promote.  The programme for promotio n is then addressed through provisions in the 
Investment Law and its implementing Decree, just  as the other industrial development programmes 
referenced in the second part of the question.  
Question 60 
Additionally, we understand that the State B udget Plan for Fiscal Year 2008-2009 includes a 
line item for "subsidies and contribution."  Pl ease describe what expenditures are envisioned 
under this line item and explain whether any of the expenditures will be included in the subsidy 
notification that Lao PDR will submit.  
Answer:  
Please note that the items "subsidies" and "contri bution" under the Government Expenditures under 
the Budget Plan are not related to the Industrial S ubsidies Notification.  The item "subsidies" should 
be read as benefits other than salaries and wages for Government officials while the item 
"contribution" refers to annual membership fees for international organizations of which Lao PDR is a 
member.  
Question 61 
We understand that encouragement of various indu strial sectors and promotion of key exports, 
are integral components of the sixth five-yea r development plan (2006-2010).  Other than the 
incentives already articulated in the Investment  Promotion and Border Trade Zone Laws, could WT/ACC/LAO/18 
Page 22  
 
 Lao PDR provide information as to what other measures are in place or being planned to 
implement these goals? 
Answer:
 
The development plan outlines the main industrial a nd export priorities.  At present, financial support 
by the Government to promote the priorities outlin ed in the plan are provided through investment 
incentives stated in Investment Law and its Decree.  
Question 62 
Question 18 in WT/ACC/LAO/17, and paragraphs 87-88 of the Factual Summary:  In response 
to comments regarding export performance a nd local-content requirements under Lao PDR's 
Investment Promotion and Border Trade Zone Laws, Lao PDR states that a Committee under 
the Prime Minister's Office has been set up to propose alternative measures to promote Lao 
PDR's industrial policy. 
Please provide an update as to what proposals are being formulated by this Committee. In particular, what proposals is the Committee considering to bring the Investment Promotion 
and Border Trade Zone Laws into co nformity with the SCM Agreement? 
Answer:
 
The proposal is to make the measures under the La o PDR's investment promotion and border trade 
zone legislation compliant with the provision on the use of domestic over imported goods as 
stipulated in ASCM.  To this effect, the new Law on Investment Promotion was passed by the 
National Assembly on 8 July 2009 which remove d the export performance requirement and local 
content requirement measure.  In addition,  the Decree on the Border Trade Zone at 
Boten-Louangnamtha No. 162/PM, dated 8 October 2002 was also amended to comply with the 
ASCM.  
Please note, however, that the Decrees on Special Economic Zone and on Border Trade Zones allow 
for the use of the local content requirement and e xport performance, which Lao PDR is in the process 
of reviewing to comply with the provisio n on the use of domestic over imported goods.  
Lao PDR reiterates its need to avail itself to  the rights and flexibilities on export performance 
requirement as provided to LDCs in the ASCM.  
Lao PDR is thankful for Members' unders tanding as stated in the Factual Summary 
(JOB(07)/160/Rev.2), paragraph 87. 
- Technical barriers to trade, standards and certification 
Question 63 
Paragraph 91 of the Factual Summary states that "Standards and technical regulations were 
developed in consultation with principal Gov ernment stakeholders and the private sector."  
We request that Lao PDR please explain the pro cess it envisions for the National Authority for 
Science and Technology to conduct to encourage pr ivate sector stakeholders to participate in 
the development and use of standards.  WT/ACC/LAO/18 
 Page 23 
 
 
 Answer:  
Private sector stakeholders participate in the deve lopment and use of standards through the National 
Standards Council which is established under the Decision on the Organization and Activities of 
National Standards Council, No. 235/PMO-NAST, date d 3 February 2010.  The National Standards 
Council, consisting of representatives from the Gove rnment and private sectors, has the role to 
consider and adopt national standa rds which will then be submitted for approval by the President of 
the National Authority for Science and Technology. 
Question 64 
We welcome Lao PDR's commitment for the Enquiry Point to be operational from the date of 
accession. 
Answer:  
Lao PDR reconfirms its commitment to operati onalize the TBT Enquiry Point upon its accession to 
the WTO.  It is now in the process of drafting the Decree on the SPS and TBT Notification Center and Enquiry Points which will be adopted by the end of  2010.  Lao PDR expresses its sincere thanks to 
development partners for gener ous supports in the drafting of the Decree and looks forward to 
continued technical assistance in the following phase of implementation.  
Question 65 
Paragraph 93 of the Factual Summary states that  Lao PDR recognized the results of conformity 
assessment conducted by relevant bodies in ex porting countries if similar to Lao PDR 
standards, including for textiles, cons truction materials and chemicals.  
Are imports of these goods required to meet Lao PDR's standards in these sectors – i.e., are 
these standards in fact mandatory?  
Answer:
 
The standards for these products are voluntary, but technical regulations are compulsory.  
Question 66 
Paragraph 93 of the Factual Summary states that  quality attestation should be accompanied by 
a certificate from a testing laboratory accredited  by a national standardization body in the 
exporting countries.  In some countries, accredit ation of test labs is largely performed by 
private sector organizations that are signator ies of the ILAC MRA.  Article 9 of the TBT 
Agreement states that where positive assurance of conformity with a standard is required, 
Members shall, where practicable, formulate a nd adopt international systems for conformity 
assessment and become members thereof.  We consider accreditation through an ILAC MRA to 
be consistent with this obligation. 
Will Lao PDR recognize accreditation by internatio nal systems of conformity assessment such 
as ILAC and IAF?  
Answer:  
Lao PDR recognises accreditation by international syst ems of conformity assessment such as ILAC 
and IAF.  WT/ACC/LAO/18 
Page 24  
 
 Question 67 
Paragraph 93 of the Factual Summary states that Lao PDR utilizes the principle of equivalency, 
and that goods meeting international standards are cleared for import.  Lao PDR specifically 
cites standards produced by ISO and IEC. 
Does Lao PDR recognize the principles of the 2000 Decision of the TBT Committee for 
determining international standards? (Annex B, G/TBT/1/Rev.9)? 
We welcome the information provided by Lao P DR that its Law on Standardization was built 
upon provisions of the TBT Agreement a nd look forward to reviewing it. 
Answer:
 
Yes, as provided for in paragraph 95 of the Factua l Summary, the Law on Standardization covers the 
key principles of the TBT Agreement, including no n-discrimination, avoiding unnecessary barriers to 
trade, transparency, harmonization with internationa l standards; and the concepts of equivalence and 
mutual recognition.  
Please see WT/ACC/LAO/16/Add.2 for a copy of the Law on Standardization. 
Question 68 
Question 21 of WT/ACC/LAO/17:  Lao PDR notes that mandatory requirements aim at 
protecting environment or safety, sanitary, health, national defence, or public order.  We would 
like to note that the TBT agreement lists as legitimate objectives of technical regulations 
national security, protection of human/animal/plant  life and the environment, and prevention of 
deceptive practices.  However, "public order" as such is not a legitimate objective listed in the 
TBT Agreement. 
Could Lao PDR explain what it understands by "protecting public order"?  Answer:
 
Lao PDR understands that protecting public order is a legitimate objective of the TBT Agreement as 
included under national security concerns.  
Question 69 
Paragraph 91 of the Factual Summary:  Lao PDR indicated that "Standards and technical 
regulations were developed in consultation with  the principal Governmental stakeholders and 
the private sector". 
Could Lao PDR provide a more detailed outline of  how the public consultation process works? 
(e.g. is a public notice made in an official publication/website?  
Are foreign stakeholders included in the consultation process?  
Answer:  
In addition to the response to Question 63, La o PDR is drafting a Decree on the SPS and TBT 
Notification Centre and Enquiry Points which will be adopted by the end of 2010.  It is foreseen that  WT/ACC/LAO/18 
 Page 25 
 
 
 the draft Decree will bring the development process of standards and technical regulations into 
conformity with the transparency requirements of the TBT Agreement. 
- Sanitary and phytosanitary measures 
Question 70 WT/ACC/LAO/13/Rev2 - SPS Action Plan:  We no te progress in Lao PDR's development of 
regulations, particularly related to food safety  and animal health issues which have a direct 
impact on public health.  However, timelines  for future legislation actions are vague and Lao 
PDR's comments on potential technical assi stance to support the development of these 
regulations are limited. 
Please provide detailed information on when L ao PDR will draft, finalize and implement the 
outstanding regulations. 
Also, please provide more details regarding Lao P DR's intention to request technical assistance 
and/or training from the Trade Development Fac ility, international organizations, and/or other 
WTO Members. 
Answer:
 
Regulations on food safety and animal health a dopted in 2009 took into consideration the WTO 
requirements that standards should be based on scien tific reasons and necessity, with an equivalence 
of standards and non-discrimination.  
For more details on the progress of outstanding regulations, please see the SPS Action Plan 
(WT/ACC/LAO/13/Rev.3) for detailed information. 
Question 71 
Food Law - We note the Lao PDR use of the term "nearly expired food".  With the exception of 
some highly perishable foods and baby food, mo st expiration periods are considered to be 
voluntary.  International standard-setting bo dies such as Codex Alimentarius have not 
recommended any mandatory shelf-life standa rds, but have recommended the use of 
manufacturer-determined "best by/before" date ma rking for food products.  Codex defines this 
as "the date which signifies the end of the period under any stated storage conditions during 
which the product will remain fully marketable  and will retain any specific qualities for which 
tacit or express claims have been made". 
Please explain Lao PDR's use of the term "nearly ex pired food" and why it has chosen to use it.  
We suggest Lao PDR consider using the manufactu rer-determined "best by/before" for all food 
products. 
Answer:  
This Question relates to labelling of pre-packaged food.  Lao PDR wishes to inform that Regulation 
No. 519/MoH on Labelling of Pre-packaged Food  implementing the Food Law No. 04/NA dated 
15 May 2004, provides that the term expiry date or  use-by date which is defined as the end of the 
estimated period under which any stated storage c onditions after which the product will not have the 
attributes expected by consumers.  After this da te the food should not be regarded as marketable. WT/ACC/LAO/18 
Page 26  
 
 Question 72 
National Policy on Food Safety - Lao PDR ment ions stakeholder participation as a component 
of the risk analysis process. 
What role will stakeholders play in the process? How does the stakeholder input contribut es to a science based risk analysis? 
Answer:
 
Under the heading "Risk Analysis", the National Food Safety Policy (13 February 2009) identifies as 
one of its strategies: 
 3(b): Establish food controls, including sta ndards, using risk analysis to foster a 
comprehensive scientific evaluation, wide stake holder participation, transparency of process, 
consistent treatment of different hazards and systematic decision-making by risk managers. 
The Government of Lao PDR recognizes that risk analysis comprises three components: risk 
assessment, risk management and risk communication.  Stakeholder participati on is only relevant in 
communicating risks, and may also contribute to risk assessment insofar as stakeholders have access to data (for example on food handling practices, consum ption patterns, etc.) that may be used in the 
conduct of an objective, science-based evaluation of risk.  
Question 73 
Regulation No. 518/MOH "On the Basic Principles in  the Application of Sanitary and Technical 
Measures for the Food Safety Management" - We are interested in Lao PDR's use of a 
"reasonable risk assessment framework" as the basis for the risk assessment procedure.   
Please provide more information on what is meant by this reasonable risk assessment 
framework and what it may involve. 
Answer:
 
Article 11 of Regulation No. 518/MoH says that m easures applied for food safety "shall be based on 
reasonable risk assessment framework".  The term refers to the conventional risk assessment steps of 
hazard identification, hazard characterization, expos ure assessment and risk characterization in food 
safety management.  
Given that risk assessment is a technically and sophist icated data rich procedure, Lao PDR is working 
with development partners in applying such principl es and steps in a manner that is appropriate to the 
circumstances of Lao PDR. 
Question 74 
We request more information on Lao PDR's approac h to recognition of foreign standards.  It 
appears that standards that are consistent with  Codex Guidelines - where they exist- would be 
acceptable to Lao PDR but that standards which fa il to meet Codex can be outright rejected.  
We would like to point out that there are also cases where standards would go beyond Codex 
guidelines.    WT/ACC/LAO/18 
 Page 27 
 
 
 For each of these cases, please ex plain how the scientific rationale behind the regulations will be 
factored into the decision making regardi ng recognition of foreign standards.   
Answer:  
Article 6 of Regulation No. 518/MoH states that th e food standards of Lao PDR will be based on the 
standards, guidelines and recommendati ons of the Codex Alimentarius. 
Article 12 of Regulation No. 518/MoH states that La o PDR recognizes the standards of countries that 
have adopted the standards of C odex Alimentarius.  The SPS certification of those countries will be 
accepted by Lao PDR.  In case the product fails to meet  such standards, it can also be rejected.  Lao 
PDR applies Codex Alimentarius as the minimum required standards. 
Question 75 
We request additional information to better understand the response to Question 27, 
WT/ACC/LAO/17, regarding Lao PDR's applicat ion of the transparency provisions of the 
WTO SPS Agreement. 
Specifically, we request that Lao PDR specify and describe the responsibilities of the SPS and 
TBT Enquiry Points and role of Ministry of I ndustry and Commerce's (MOIC) officials in this 
process. 
For example:  Who will be responsible for noti fying the Lao PDR's SPS and TBT regulations to 
the WTO? 
When requested, who will be responsible for pr oviding Lao PDR's SPS-related regulations and 
other related information to WTO Members? 
Who will be responsible for coordinating the review and comments on foreign SPS regulations 
within Lao PDR and private industry, etc.?  
Answer:  
In addition to the response to Question 28 of Document WT/ACC/LAO/17 , Lao PDR is pleased to 
inform that  currently the Decree on the SPS and TBT Notifi cation Centre and Enquiry Points is under 
preparation and will be ad opted in the end of 2010 .  This Decree foresees the SPS Enquiry Point be 
established at the Ministry of Agriculture and Forestry (MAF) while the TBT Enquiry Point be 
established at the National Authority for Science a nd Technology (NAST).  The Ministry of Industry 
and Commerce (MOIC) will be responsible  for SPS and TBT Notification Centre.  
The two Enquiry Points will be responsible fo r providing information related to SPS and TBT 
measures to WTO Members, while the Notificatio n Centre will be responsible for notifying Lao 
PDR's SPS and TBT regulations to the WTO Secret ariat and coordinating th e review and comments 
from Members on Lao PDR's SPS and TBT regulati ons, and on Lao PDR's comments on foreign SPS 
and TBT regulations.   
Question 76 
Paragraphs 96-104 of the Factual Summary:  We thank Lao PDR for submitting regularly 
updates of its action plans on SPS.  We welcome the Lao's efforts to align its regulations with 
the provisions of the SPS Agreement.  WT/ACC/LAO/18 
Page 28  
 
 We note that Lao is currently drafting new Regu lations which are to be finalised by 2010.  We 
seek further clarification on how Lao plans to implement these new regulations on grounds and 
in practice.  
We also invite Lao to comply with the specified timeline (no later than 2010).  The sooner the 
outstanding regulations would be finalized, the mo st accurate and faster the assessment of the 
accession process in terms of SPS measures will be.  
The checklist of illustrative SPS issues described in the document WT/ACC/LAO/6, should be 
updated and circulated, in view of matching the existing/new/drafted regulations with the 
principles of the Agreement regarding science-b ased regulations, transparency provisions, 
measures based on necessity, equivalence, no n-discrimination, and control, inspection and 
approval procedures. 
Answer:
 
See the updated SPS Checklist (WT/ACC/LAO/6/Rev.1) and the SPS Action Plan 
(WT/ACC/LAO/13/Rev.3).  
- State-trading entities 
Question 77 
Paragraphs 107-108 of the Factual Summary:  Lao PDR claims not to have STEs as defined by 
Article XVII of the GATT 1994 but then acknowledges that 16 of its State-owned enterprises are currently involved in importation and exportat ion of goods.  Further clarification regarding 
the behaviour of those enterprises would be useful.  
Could Lao PDR elaborate further on whether the enterprises listed in Table 5, in their 
purchases or sales involving either imports or  exports, act consistently with the non-
discriminatory principle enshrine d in the GATT 1994 and solely in  accordance with commercial 
consideration?  
Has the Decree No. 15/PMO "On Trade Competition"  any substantial grip on the behaviour of 
such enterprises?    
Answer:
 
This answer has been provided in the light of the "Understanding on the Interpretation of 
Article XVII".  To the understa nding of Lao PDR, the STEs in question are governmental or 
non-governmental enterprises which have monopoly or special rights or privileges which they use to 
influence the level of imports.  Lao PDR can confirm that none of the SOEs in Table 5(a) meet this 
working definition. 
- Free zones, special economic areas Question 78 Paragraph 111 of the Factual Summary notes th at legislation was being reviewed to ensure 
compliance with WTO rules on free zones.  Wh at is the status of this legislation?  WT/ACC/LAO/18 
 Page 29 
 
 
 Answer:  
See the response to Question 62. 
- Agricultural policies 
Question 79 Paragraph 116 of the Factual Summary explains th at import controls on agricultural products 
are maintained pursuant to Notification No . 1376/MOIC.DIMEX of 10 October 2006.   
We request that this notification please be subm itted to the Working Party for review, and that 
any import controls on agricultural products be  clearly articulated in Section IV. (A) of the 
Working Party Documentation concerning qua ntitative import restrictions, including 
prohibitions, quotas and licensing systems, as applicable.   
Answer:
 
The wording in the Factual Summary paragraph 11 6 which reads "Import controls on agricultural 
products were maintained pursuant to Notificati on No. 1376/MOIC.DIMEX of 10 October 2006.  The 
procedure for obtaining import permits for ag ricultural commodities and agro-chemicals was 
demonstrated with a flow chart, circulated in document WT/ACC/LAO/5 Annex V" is no longer valid 
and please reflect change accordingly.   
To implement the Decree on Import Licensing Procedures No. 180/PMO, dated 7 July 2009, the 
Ministry of Industry and Commerce issued the Notification on Goods Required Non-Automatic 
Import and Export Licensing No. 2151/MOIC.DIMEX , dated 30 October 2009.  A copy of the 
notification is available from the WTO Secr etariat (see document WT/ACC/LAO/18/Add.1).  
The MOIC is currently preparing the list of produc ts proposed to be subject to Automatic Licensing 
for import.  This would include other agriculture commodities and agro-chemicals and the procedures 
on their importation.  See also the response to Question 33.   
Question 80 
Does Lao PDR maintain any seasonal tariffs, prohib itions or other controls on the importation 
of agricultural products?  If yes, please specify the products, by HS line, and articulate the 
specific control applied.   
Answer:  
Lao PDR does not maintain any seasonal tariffs, prohi bitions or other controls on the importation of 
the agricultural products other than those spec ified in Notification No . 2151/MOIC.DIMEX, dated 
30 October 2009.  
Question 81 
Paragraph 116 of the Factual Summary notes th at Lao PDR intends to "reserve the right to 
impose import restrictions on rice". 
We request that Lao PDR make a commitment that any current or future import restrictions 
will be applied in accordance with the WTO Agreements. WT/ACC/LAO/18 
Page 30  
 
 Answer:
 
Lao PDR confirms that import restriction on rice will be applied in accordance with the WTO 
Agreements.  
Question 82 
Paragraph 121 of the Factual Summary:  We welcome the information provided on agricultural 
support measures.  We note that Lao PDR (E S:1 of WT/ACC/SPEC/LAO/1/Rev.1, Domestic 
Support and Export Subsidies in the Agricultural) has not applied any export subsidies in the 
2001-2003 base period selected. 
We would be grateful if Lao PDR could confir m that it has not used agricultural export 
subsidies in recent years 
Answer:  
Lao PDR reiterates its right to use agricultural export subsidies provided for Developing Countries 
including LDCs in the Agreement on Agriculture.  
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME 
Question 83 
Comments and Questions on the Law on Intellect ual Property.  (Legislation submitted to the 
Working Party for review in July 2009).  
We note that Article 2 provides that "Intellectual property is work of the human mind through 
inventions and creations having economic value and benefit in social development."  This definition for "intellectual property" raises a concern because intellectual property that is eligible for protection under TRIPS/Berne because it has met the criteria to qualify as a patent 
or trademark or copyright, may not receive protection under the Lao Law on Intellectual 
Property because it is determined that it does not have any economic value or it does not benefit in social development. 
Answer:
 
The definition for intellectual property of th e Intellectual Property Law No. 08/NA, dated 
24 December 2007, is a general policy vision to enco urage and promote people in the society to make 
any inventiveness or creativeness, which have ec onomic value and will eventually contribute to 
social-economic development of any given country.  Please refer to Section III Part 1 and Section V 
Part 1, Part 2 of the Law on Intellectual Property re garding the criteria for the protection of trademark, 
patent and copyright which is TRIPS/Berne concep t that can be protected under this IP Law.   WT/ACC/LAO/18 
 Page 31 
 
 
 - SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights Question 84 
In the definition of "Copyright" in Article 3.25,  we believe that it is important to insert 
language to ensure that protection is not extende d to ideas.  We suggest adding:  "whatever 
manner or mode of expression" at the end of that definition. 
Answer:
 
Lao PDR confirms that the definition in Article 3.25 explicitly refers to "a work" which is an 
expression which is created by the author in whatever mode in the domains of art, literature or 
science.  The definition listed in the Article 3 can  be refined through the Implementing Decree of the 
IP Law which is expected to be adopted by the end of 2011.   
Question 85 
In the definition of "Related Rights", in Arti cle 3.26, we suggest deleting "encrypted" because 
unencrypted broadcast should be covered also. 
Answer:  
Lao PDR confirms that both "encrypted" and "une ncrypted" broadcasts are covered in Articles 3.26 
and 3.31.  
Article 3.26:  Related right  means the right of an  individual or organization relating to copyright in 
the domains of performance, phonograms and broad casting or satellite signal carrying encrypted 
programme.  
Article 3.31:  Broadcasting means making works ava ilable to the public through radio or television 
broadcasts or by other similar means, such as:  the internet, or satellite transmissions, etc. 
Thus, unencrypted broadcast is covere d under the definition of broadcasting. 
Question 86 
The definition for "derivative works", in Article 3.28. is too narrow.  We suggest the following 
revision:  "Derivative works means the translatio n, adaptation, modification, transformation, 
interpretation, elucidation of a copyrighted work." 
Answer:  
In the view of Lao PDR, the defin ition contained in Article 3.28 of the IP Law is equivalent to the one 
provided in the question, and reads: " Derivative works  means a work translated from any language 
into Lao or any other language or from Lao into another language, adapted, modified, transformed, compiled, interpreted, elucidated, [of] a selected or chosen work.
"   WT/ACC/LAO/18 
Page 32  
 
 Question 87 
In Article 5.4, "for commercial purpose" should  be deleted as the exercise of any exclusive 
rights by a third party of an intellectual prop erty right, not only in cases where there is a 
commercial purpose, must be with the authorization of the right holder.  
Answer:
 
The IP Law provides for specific provisions that the use of protected intellectual property by a third 
party, whether for commercial or non-commercial pur poses, must be authorized by IP owner, as 
provided for in Article 101 on Industrial Property;  Article 106 on Copyrights and Related rights; and 
Article 103 on Plant Varieties.  
Please see a copy of the Law on Intellectual Property which has been provided to the WTO Secretariat 
(see document WT/ACC/LAO/17/Add.2). 
Question 88 
In Article 76, we suggest the insertion of "ideas" as another item ineligible of a copyright (see 
TRIPS Article 9.2). 
Answer:  
The Implementing Decree of the IP Law which is expected to be adopted by the end of 2011 will 
make it explicitly clear that copyright pr otection will not be extended to ideas. 
Question 89 
Article 78 appears to provide protection for related  rights of Lao citizens.  Please clarify how 
the rights of foreign performers and produ cers of phonograms and broadcasting organizations 
would be protected.  
Answer:  
The Intellectual Property Law, Article 6 is appli cable to domestic and foreign individuals and 
organizations who are involved in intellectual pr operty activities under this Law, and international 
conventions to which the Lao PDR is a party. 
In addition, the rights of foreign performer s and producers of phonograms and broadcasting 
organizations shall be protected under the internatio nal conventions to which the Lao PDR is a party 
as provided for in Articles 78.2 and 78.3 of the Inte llectual Property Law.  Lao PDR will endeavour to 
become a member of Berne Convention by the end of 2011.  See also the TRIPS Action Plan (WT/ACC/LAO/15/Rev.3).  
Question 90 
Please clarify what Article 78.4 is intended to cover. 
Answer:
 
Article 78.4 ensures that the protection of the related rights in Items 1, 2 and 3, do not affect the 
protection of the works themselves, as provided for in this Article.   WT/ACC/LAO/18 
 Page 33 
 
 
 Question 91 
Article 85.1 and Article 85.2 appear to be contra dictory.  Article 85.2 provides that individuals 
or organizations who invest, finance etc. are th e rights owners of film and drama; however, 
Article 85.2 lists additional "owners".  How ca n all the parties listed be rights owners? 
Answer:  
The individuals or organizations in Article 85.2 ar e the legal owners of the rights.  These rights may 
be extended to the persons in Article 85.1 if ther e is an agreement between them, as provided for in 
subparagraph of Article 85.1. 
Question 92 
Article 91.2 provides that a Broadcasting organization has the right to enjoy the benefits from 
the recording, distribution and communication to the public of its broadcasts.  Please explain 
the meaning of "the right to enjoy the benefits". 
Answer:  
The right to enjoy the benefits means the righ t to get compensation/remuneration from the rights 
provided for in Article 91.1. 
Question 93 Article 92 provides that investors in the performance have similar rights as the performers.  
Please explain how this would work when the inve stor and performer have conflicting interests 
in the performance. 
Answer:
 
In the event of a conflict of interests, the parties may resort to dispute resolution as per Section VIII 
of this Law or seek recourse through the court of law.   
Question 94 
Article 93.3 provides that in the case where Lao P DR is a party to an international convention 
or an international agreement, the term of protec tion for copyright shall be as determined in 
such convention or agreement.  Please explain wh at would happen if the term of protection in 
Article 93.1 or 93.2 is inconsistent with the term  of protection in the convention or agreement. 
Answer:  
If the term of protection in Articles 93.1 or 93.2 is  inconsistent with the term of protection in the 
convention or agreement to which La o PDR is a contracting party, that  of international convention or 
agreement shall prevail.  Please refer to Article 5.5 of the IP Law.  
Question 95 
Article 94.4 provides the same situation as in Arti cle 93.3 in the above for related rights.  Please 
explain what would happen if the term of pr otection in Articles 94.1 or 94.2 or 94.3 is 
inconsistent with the term of protect ion in the convention or agreement. WT/ACC/LAO/18 
Page 34  
 
 Answer:
 
If the term of protection in Articles 94.1, 94.2, or 94 .3 is inconsistent with the term of protection in 
the convention or agreement to which Lao PDR is a c ontracting party, that of international convention 
or agreement shall prevail.  Please refer to Article 5.5 of the IP Law.  
Question 96 
Please clarify how Article 104 differs from Articles 95 and 96. Answer:
 
The three articles refer to limitations or exceptions to  copyright but expressed from different interests. 
Article 104 refers to the owner rights whil e Article 95 and 96 refer to user rights. 
Question 97 
Please clarify how Article 105 differs from Articles 97 and 98. Answer:
 
The three articles refer to limitations or excepti ons to related rights but expressed from different 
interests.  Article 105 refers to the owner right s while Article 97 and 98 refer to user rights. 
Question 98 
Section V.  Copyright and Related Rights; Part 4.   Copyright Owner; Article 83.  Categories of 
Copyright Owner; page 23:  Article 83 suggest s that "the local community" is the fourth 
category of copyright owners.  Reference to gr oups, communities and organizations also appear 
in Article 87 as they pertain to traditional ar tistic and literary works.  We would appreciate 
clarification as to whether the IP law permits a collective ownership of copyright for traditional 
cultural expressions. 
Answer:  
The collective ownership of copyright for traditi onal cultural expressions is permitted under the Law 
on Intellectual Property.  See also the response to Question 38 of Document WT/ACC/LAO/17.  
- Trademarks, including service marks 
- Geographical indications, including appellations of origin 
Question 99 
In response to Question 42, WT/ACC/LAO/17, Lao PDR suggest that "[ a] GI would not be 
registered if the reputation of another party's trademark is such that the use of GI would mislead the consumer as to the origin ("true identity") of the goods." 
What safeguards will be instituted to ensure compliance with TRIPS Article 16?  WT/ACC/LAO/18 
 Page 35 
 
 
 Answer:  
The IP Law on Industrial Property Rights Owner (Part 4) does not have prior and exclusive right 
owner and also does not have detail on examina tion of the application and cancellation of the 
registration.  
The Implementing Decree of the Intellectual Propert y Law will include all the provisions to preserve 
the rights of industrial property owners, especially co nsistent with Article 16. 1 and Article 24.5 of the 
TRIPS Agreement which relates to Trademarks and GI. 
Question 100 
We note the following:  TRIPS Article 16 requires that the owner of a trademark have the 
exclusive right to prevent confusing uses of his trademark, even as to a later GI.  Hence, 
coexistence between a prior trademark and a later GI may violate the trademark owner's 
rights.  Still, in one case, WTO jurisprudence (WTO Panel Report WT/DS174/R) allowed for the possibility of coexistence between a prior trad emark and a conflicting later GI, as a limited 
exception to a trademark owner's rights under Article 17.  The Panel found that the Member's co-existence regime was consistent with Article 17 of TRIPS, but only because in that case, 
coexistence was conditioned upon the following: (1) registration of the GI could be prevented if 
use of the GI would cause a high likelihood of confusion with the prior trademark; (2) registration of the GI could be directly o pposed by interested third parties; and (3) the 
owner of the prior trademark could prevent the GI from being used in a translated form, if such uses conflict with that prior trademar k and are likely to cause confusion. 
What safeguards are in place in the case of the Lao law? 
Answer:
 
Lao PDR takes notes of Member's comments.  The relevant provisions of the Law on Intellectual 
Property are cited below: 
Article 23.6 notes that "marks which are identical, or  similar to trademarks of any goods or services 
already registered" are ineligible for registration as trademarks. 
Article 25.3 notes that "geographical indications which are identical or similar to protected trademarks 
that lead to misunderstanding as to the origin of  the said goods" are ineligible for registration as 
geographical indications.  
Article 28 provides under Principles used for Consider ation on Application of Registration, that "[i]f 
there are many applicants requesting registration for the same or similar industrial property which are 
in compliance with registration regulations, the person who file first or the person who obtained 
priority date shall be considered first." 
Regarding existing industrial property rights,  Paragraph 1.6 of Article 100 provides under 
Prohibitions on the Industrial Property Owner and th e Authorized User, that "[t]he owner of the 
industrial property has no right to prohibit others from using or doing the following: 
1.6 using of the same or similar trademark as the geographical indication where trademark became 
protected before the date of filing the geogra phical indication application for registration." WT/ACC/LAO/18 
Page 36  
 
 Notwithstanding the aforementioned, the provisions of Article 17 of the TRIPS Agreement will be 
taken into account in developing the Implementing Decree of the IP Law.  Please see the TRIPS 
Action Plan (WT/ACC/LAO/15/Rev.3).  
Question 101 
In response to Question 43 in WT/ACC/LAO/17, Lao PDR suggests that its law is consistent 
with TRIPS Article 16.  In that connection, please see the question immediately above.  
Answer:
 
Lao PDR takes notes of Member's comment.  Please refer to the response to Question 99.  In addition, 
please note that the provisions of Article 16 of the TRIPS Agreement will be taken into account in developing the Implementing Decree of the IP Law.  See the TRIPS Action Plan 
(WT/ACC/LAO/15/Rev.3).  
Question 102 
In response to Question 45, Lao PDR reports that third parties may seek cancellation of a GI 
registration that was obtained in bad faith. 
Is cancellation available in cases where the registration was not obta ined in bad faith, but where 
the registration nevertheless violates another party's right, or is otherwise inconsistent with Lao 
Law? 
Answer:
 
In such situations, Article 120 of the In tellectual Property Law provides that the National Authority 
for Science and Technology can issue or cancel intellectual property registration certificates.  
Question 103 
In response to Question 46 in WT/ACC/LAO/17, Lao PDR provided a further explanation as to 
the meaning of the term "recognition," and explained that it refers to "reputation." 
Among which consumers must this "reputation" exist?  Consumers in Lao? 
Answer:  
The criteria contained in Article 19(2) of the IP  Law refer to the requirements for obtaining a 
GI certificate for a Lao product and as such requir es that there be reputation among Lao consumers.  
Question 104 Law No. 08-NA on Intellectual Property (WT/ACC/LAO/17/Add.2): Section I.  General Provisions; Article 3.  Definitions; 17.  Geographical indication; page 2:  The 
definition of "Geographical indication" is in complete; the last part seems to be missing. 
Answer:
 
Lao PDR takes note of Members' comments.  The de finition in Article 3.17 of the Law on Intellectual 
Property is to be read in conjunction with the last paragraph of Article 19.    WT/ACC/LAO/18 
 Page 37 
 
 
 - ENFORCEMENT 
Question 105 Section VIII.  Dispute Resolution and Violat ion Remedies; Article 115.  Administrative 
Remedy; page 36: And  Section X.  Awards and Sanctions; Article 130.  Education Measures; 
page 40:  Articles 115 and 130 relate to enforcement measures.  Canada would appreciate 
further details and clarification as to the nature of the "administrative remedy" (Article 115) 
and "education measures" (Article 130)  to address IP infringements.  
Answer:
 
Details on the nature of administrative remedy an d education measures will be elaborated in the 
Decree and regulations implementing the IP Law.  
Question 106 WT/ACC/LAO/2/Rev.8 (comments No. 157- 166) and the TRIPS Action Plan 
(WT/ACC/LAO/15/Rev.2) note that Decrees Implementing the Intellectual Property Law must be formulated to bring Lao PDR into complia nce with the requirements set forth by the 
enforcement provisions of the TRIPS Agreement, such  as those relating to civil administrative 
procedures and remedies (Articles 42-50) and criminal procedures (Article 61).  
With regards to the requirements for special bord er measures set forth in Articles 51-60 of the 
TRIPS Agreement, please clarify whether the 2005 Customs Law and implementing Decree No 362/PM satisfy these requirements.  
For example, please describe where Lao PDR ha s established procedures to enable a right 
holder to lodge an application in writing with competent authorities and that allows for the 
suspension of release of counterfeit trademark or pirated copyrights goods as required in 
Articles 51-55. 
Answer:
 
Article 124 of the Law on Intellectual Property Ri ghts provides under "Inspection of Intellectual 
Property at Border Checkpoints" that "[i]n order to  intercept intellectual property violations, customs 
officers and other officers assigned to border chec kpoints have the rights and duties in accordance 
with laws and regulations to inspect goods im ported and exported, seize and impound goods which 
violate intellectual property:" 
In addition, Articles 129 to 135 refe r to the applicable sanctions.  
Article 76.10 of the Customs Law also provides for the rights of customs officers to inspect and seize 
goods that violate the intellectual property rights.  
Lao PDR takes notes of Members' comments on provisions of Articles 51 to 55 of the TRIPS 
Agreement and will take them into account in prepar ing regulations implementing the Customs Law.   WT/ACC/LAO/18 
Page 38  
 
 VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 107 Could Lao PDR confirm whether branching is permitted, as stated in paragraph 170 of the 
Factual Summary of the Secretariat?  
Answer:
 
The new Law on Investment Promotion No. 02/NA dated 8 July 2009, which unifies the Law on 
Foreign Investment Promotion of 2004 and the La w on Domestic Investment Promotion of 2004, 
provides for the establishment of branches (Article 48 of the Law on Investment Promotion).  This 
does not obviate the need for the entity to be regi stered in accordance with standard practice under the 
applicable laws and regulations. 
VII. TRANSPARENCY Question 108 We take note of the information provided in paragraph 173 of the Factual Summary that Lao 
PDR does not currently have legislation or regul ations that allow public comment on draft laws 
and regulations.   
Keeping in mind the transparency obligatio ns Lao PDR will fulfil under the SPS and TBT 
Agreements, which require a specific number of  days for public review and comment of 
proposed legislation and regulations, we enco urage Lao PDR to consider enacting a broader 
regulatory review process that will allow publ ic review and comment on legislation and 
implementing regulations, to fost er greater overall transparency.  
Answer:
 
Lao PDR is pleased to inform that the Decree on the SPS and TBT Notification Centre and Enquiry 
Points is under preparation and will be adopted by the end of 2010.  The Decree incorporates 
provisions requiring consultations with relevant  stakeholders with re asonable timeframe for 
comments through the Notification Centre and Enquiry Points in the process of preparing draft laws and regulations relate to  SPS or TBT measures.  
In addition, the Presidential Ordinance on Legi slation Making No. 02, dated 20 October 2003 also 
provides for the general principles and procedures  including consultations with stakeholders to 
prepare laws and regulations.  A copy of the Preside ntial Ordinance has alread y been provided to the 
WTO Secretariat (WT/ACC/LAO/16/Add.1).  
__________