RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/LAO/12/Rev.2 
25 May 2010 
 
 (10-2896) 
Working Party on the 
Accession of the Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Action Plan on the Legislative Work and  
Implementation of the Customs Valuation Agreement  
 
Revision  
   The following submission, dated 18 May 2010, is  being circulated at the request of the 
Government of Lao People's Democratic Republic (Lao PDR). 
 
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 WT/ACC/LAO/12/Rev.2 
Page 2  
 
  Year Steps/Measures/Activities Technical Assistance 
(TA) 
2005/ 2006 - The (revised) Customs Law, based on key principles of the 
Customs Valuation Agreement (CVA), was adopted by National 
Assembly in May 2005; 
- Drafted the Prime Minister's D ecree on implementing the Customs 
Law; 
- Developed technical training programme; and - Created Post Cl earance Audit Unit. TA received from 
IMF on building legal 
framework. 
2007 - Became the 171th member of the World Customs Organization 
(WCO) in January 2007; 
- Commenced Post Release Review; 
- Provided regular training to staff and traders on WTO CVA; 
- Commenced trade outreach prog ramme (consultation/information 
dissemination); and 
- Decree on Implementing the Customs Law No. 362/PM, based on 
key principles of the CVA, was adopted on 19 October 2007. TA received from 
IMF on building legal 
framework. 
2008 - Prepared work plan for compliance with the WTO CVA; 
- Provided regular training to staff and traders on WTO CVA; and - Commenced trade outreach prog ramme (consultation/information 
dissemination). TA received under 
the Customs and Trade Facilitation 
Project. 
2009 - Guidance No. 0491/MOF on  Implementation of the Decree 
Implementing the Customs Law was adopted 12 March 2009; 
‐ Prepared valuation technical procedures; 
- Provided regular training to customs staff and traders in application 
of the WTO CVA; 
- Provided transitional assistance  and guidance to traders; and 
‐ Commenced post release review. TA received under 
the Customs and Trade Facilitation 
Project.  
 
 The challenges facing Lao PDR in implemen ting the WTO CVA provisions include the low 
rate of voluntary compliance by importers, their lack of sound accounting systems and record keeping, and the limited capacity of the custom s officials to administer WTO CVA valuation 
provisions. 
 Lao PDR currently applies reference price list to a large number of products in order to 
provide consistency of treatment a nd to deter valuation fraud.  Movi ng too quickly to application of 
the WTO CVA and eliminating use of the reference pr ice list, before alternative anti-fraud procedures 
can be adopted, would place the revenue at risk. 
 While the WTO CVA provides (in Annex III, para graph 2 of the Agreement) for a transition 
period for developing countries, the use of refere nce price list will be phased out and replaced with 
the transaction value provisions of the Customs Valuation Agreement. 
 A transition plan is necessary to educate im porters on the new valuation provisions and on 
customs' requirements for importer record keeping and accounting systems.  Time is also required for 
Lao PDR to develop its valuation procedures and policies, to strengt hen the post release review and 
post clearance audit programme, to develop info rmation technology support systems including a 
valuation reference database and AS YCUDA, and to fully train staff. 
 Lao PDR will implement the provisions of the WTO CVA including the use of transaction 
value procedures and the related techniques for pr operly determining the customs value of imports. 
 Lao PDR requires extensive technical assistance and advice in preparing and implementing its 
transition plan.  WT/ACC/LAO/12/Rev.2 
 Page 3 
 
 
  Specifically, the action plan foresees th e following objectives and timelines: 
By the end of 2010:  
- Provide regular training for customs staff and traders on the application of the WTO CVA 
through the Customs Law and its Implementing Decree; 
- Provide regular training of customs staff in the application of Risk Management; 
- Commence automation project implementation - ASYCUDA World (Phase 1:  Development 
of Prototype) supported by the World Bank and UNCTAD; 
- Continue carrying out post release review of customs declaration and to verify accuracy of 
declared value (based on the PCA Strategic Plan and work plan); 
- Begin the reduction of items in the reference price list; and 
- Commence the implementation of the CVA by starting to apply the transaction value (and the 
other methods provided in the Agreement) to  goods imported for Government projects, 
international organizations, goods imported under FTAs (CEPT- AFTA), large multinational 
and Lao PDR companies with good compliance records. 
By the end of 2011:  
- Provide regular training for all customs staff and traders on the application of the WTO CVA 
through the Customs Law and its Implementing Decree; 
- Prepare Ministerial Instruction incorporati ng CVA Interpretative Notes to elaborate the 
Decree No. 362/PM implementing the Customs Law; 
- Commence automation project implementation - ASYCUDA World (Phase 2:  Instalment of 
the Prototype at pilot sites) supported by the World Bank and UNCTAD to provide 
information and reports by selected and low risk importers; 
- The reference price list shall be developed into an automate d 'valuation reference database' 
and used primarily as a reference source in de termining customs value.  As the valuation 
reference database is developed, other smaller importers of these products shall be permitted 
to participate based on their compliance records and their agreement to meet their conditions 
outlined above; 
- Commence initial implementation of Risk Management; - Commence initial implementation of Post Clearance Audit; and - The valuation provisions shall be applied fo r all imports with a highly limited number of 
exceptions for imports specifically identified as high revenue risk for which the reference 
price list would apply.  The criteria of risks sh all be determined by the record of compliance 
of importers, nature of goods, and origin of goods. 
By the end of 2012:
 
- Provide regular training for all customs staff and traders on the application of the WTO CVA 
through the Customs Law, its Implementing Decree and the Ministerial Instruction incorporating CVA Interpretative Notes; 
- Complete the automated customs processing system - ASYCUDA World (Phase 3:  
Nationwide rollout) supported by the World Bank and UNCTAD, including a sophisticated selectivity function to identify pot ential cases of undervaluation; and 
- Lao PDR will fully implement the provisions of the CVA by the end of 2012. 
Note:  Lao PDR has provided information relating to its overall customs modernization plan for transparency 
purposes.  It is not necessarily in Lao PDR's view that all of the reform s outlined are required under the CVA. 
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