RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/LAO/4 
27 August 2010 
 (10-4487) 
Working Party on the 
Accession of the Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Elements of a Draft Working Party Report  
  WT/ACC/SPEC/LAO/4 
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  TABLE OF CONTENTS 
 
I. INTRODUCTION ................................................................................................................... .1 
DOCUMENTATION PROVIDED ......................................................................................................1  
INTRODUCTORY STATEMENTS....................................................................................................1  
II. ECONOMIC POLICIES..........................................................................................................3  
- Monetary and Fiscal Policy..................................................................................................... .3 
- Foreign Exchange and Payments ............................................................................................5  
- Investment Regime.............................................................................................................. ......7  
- State Ownership and Privatization .......................................................................................10  
- Pricing Policies ............................................................................................................... .........11  
- Competition Policy............................................................................................................. .....13  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................13  
- Powers of Executive, Legislative and Judicial Branches of Government ..........................13  
- Authority of Sub-Central Governments ...............................................................................17  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................18  
- Trading Rights ................................................................................................................. .......18  
A. IMPORT REGULATIONS....................................................................................................20  
- Ordinary cust oms duties ........................................................................................................ 20 
- Other duties and charges....................................................................................................... .21 
- Tariff rate quotas, tariff exemptions.....................................................................................21  
- Fees and charges for services rendered.................................................................................22  
- Application of internal taxes to imports ...............................................................................22  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............24  
- Customs valuation.............................................................................................................. .....26  
- Rules of origin ................................................................................................................ .........27  
- Other customs formalities ...................................................................................................... 28 
- Pre-shipment inspection ........................................................................................................ .28 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................29  
B. EXPORT REGULATIONS ...................................................................................................29  
- Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports............................................................................................................... .........29  
- Export rest rictions ............................................................................................................ ......30  
- Export subsidies ............................................................................................................... .......31  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................31  
- Industrial policy, including subsidies....................................................................................31  WT/ACC/SPEC/LAO/4 
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  -
 Technical barriers to trade, standards and certification.....................................................33  
- Sanitary and phytosanitary measures...................................................................................37  
- Trade-related investment measures ......................................................................................43  
- State-trading entities......................................................................................................... ......44  
- Free zones, special economic areas........................................................................................45  
- Government procurement......................................................................................................46  
- Transit........................................................................................................................ ..............47  
- Agricultural policies.......................................................................................................... ......47  
(a) Imports........................................................................................................................ .............47  
(b) Exports........................................................................................................................ .............48  
(c) Internal policies.............................................................................................................. .........48  
- Trade in ci vil aircraft........................................................................................................ ......49  
- Textiles regime ................................................................................................................ ........49  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................49  
- GENERAL........................................................................................................................ .......49  
- Industrial property protection...............................................................................................49  
- Responsible agencies for policy formulation and implementation .....................................50  
- Participation in international intellectual property agreements ........................................51  
- Application of national and MFN treatment to foreign nationals......................................52  
- Fees and taxes................................................................................................................. .........52  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ...........................................................................52  
- Copyright and related rights..................................................................................................5 2 
- Trademarks, including  service marks...................................................................................54  
- Geographical indications, including appellations of origin.................................................56  
- Industrial designs............................................................................................................. .......57  
- Patents........................................................................................................................ ..............57  
- Plant variety protection....................................................................................................... ...58 
- Layout designs of integrated circuits ....................................................................................58  
- Requirements on undisclosed information, including trade secrets and test data............59  
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS......................................................................................................................... ..........59  
- ENFORCEMENT...................................................................................................................5 9 
- Civil judicial procedures and remedies.................................................................................59  
- Provisional measures ........................................................................................................... ...60 
- Administrative procedures and remedies.............................................................................60   WT/ACC/SPEC/LAO/4 
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  - Special border measures........................................................................................................ .61 
- Criminal procedures............................................................................................................ ...61 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................62  
VII. TRANSPARENCY .................................................................................................................64  
- Publication of information on trade......................................................................................64  
- Notifications.................................................................................................................. ...........64  
VIII.  TRADE AGREEMENTS .......................................................................................................64  
CONCLUSIONS .................................................................................................................... ..............65  
ANNEX .......................................................................................................................... .......................66   WT/ACC/SPEC/LAO/4 
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  I. INTRODUCTION 
1. The Government of the Lao People's Democra tic Republic (Lao PDR) applied for accession 
to the World Trade Organization (WTO) in July 1997.  At its meeting on 19 February 1998, the 
General Council established a Working Party to ex amine the application of the Government of 
Lao PDR to accede to the World Trade Organizati on under Article XII of the Marrakesh Agreement 
establishing the WTO.  The terms of reference and the membership of the Working Party are 
reproduced in document WT/ACC/LAO/2/Rev.[9].   
2. The Working Party met on 28 October 2004 under the Chairmanship of H.E. Mr. T. Groser 
(New Zealand); on 30 November 2006, 15 November 2007, and 4 July 2008 under the Chairmanship of H.E. Mr. B. Gosper (Australia) and on 14 Ju ly 2009 and ................... under the Chairmanship of 
Mr. Zhang Xiangchen (China). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Lao PDR (WT/ACC/LAO/ 3), the questions submitted by Members on the 
foreign trade regime of Lao PDR, together with the replies thereto, and other information provided by 
the authorities of Lao PDR (WT/ACC/LAO/4, WT/ACC/LAO/5, WT/ACC/LAO/6 and Revision 1, 
WT/ACC/LAO/7, WT/ACC/LAO/8, WT/ACC/LAO/9 and Revisions 1, 2, 3 and 4, WT/ACC/LAO/11, WT/ACC/LAO/12 and Revisions 1 and 2, WT/ACC/LAO/13 and Revisions 1, 2 
and 3, WT/ACC/LAO/14 and Revisions 1, 2 and 3, WT/ACC/LAO/15 and Revisions 1, 2 and 3, 
WT/ACC/LAO/16, WT/ACC/LAO/17, WT/ACC/LAO/ 18, WT/ACC/LAO/19 [...]), including the 
legislative texts and other documentation listed in Annex I.   
INTRODUCTORY STATEMENTS 
4. The representative of Lao PDR said that his G overnment had implemented a comprehensive 
reform programme since the mid 1980s to transf orm the economy from central planning towards a 
market-oriented system.  Lao PDR had joined th e Asia Pacific Trade Agreement in 1975 and the 
Association of South East Asia n Nations (ASEAN) in 1997, with the aim to establish an ASEAN 
Economic Community by 2015, and was negotiating regi onal trade agreements with dialogue partners 
of the ASEAN.  Lao PDR was thereby gradually in tegrating into a regional forum consistent with 
WTO rules and procedures.  However, the institutio nal base for a market economy remained weak in 
Lao PDR, principally due to landlockedness and underdeveloped infrastructure.  Notwithstanding 
these challenges, his Government remained committed to economic integration as the foundation for WT/ACC/SPEC/LAO/4 
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  long-term socio-economic development.  In this context, WTO Membership would complement pro-
poor domestic economic and trade reforms in response to increasing competition in the global 
economy.   
5. Lao PDR was pursuing an open trade regime consis tently and was keen to ensure widespread 
confidence in it.  The trade policy regime was being reformed to enhance transparency and secure an 
enabling trade environment.  Over a period of ten years, his Government had been transforming the 
legal regime from a framework based on decrees to a system essentially based on laws passed by the 
National Assembly.  However, as a land-locked LD C, Lao PDR was vulnerable and continued to face 
structural challenges.  He therefore called upon Memb ers to be sympathetic to his country's needs and 
flexible with respect to the terms and conditio ns whereby Lao PDR would be implementing its 
accession obligations.  His Government would seek to benefit from the special and differential 
treatment provisions and the flexibilities granted to LDCs, including the transitional periods and 
technical assistance foreseen in the WTO Agreements, and the General Council's Decision on 
Guidelines for LDCs Accession (document WT/L /508).  Customs valuation, sanitary and 
phytosanitary measures, technical barriers to trad e, trade-related investment measures, industrial 
subsidies, and intellectual property rights were ar eas in which his Government required particular 
flexibility and assistance.   
6. Members welcomed Lao PDR's application to join the WTO and pledged to work 
constructively to advance and conclude Lao PDR's accession on appropriate terms.  While 
appreciating the domestic reforms already undertak en, some Members noted that further work was 
needed to achieve compliance with WTO rules and di sciplines.  Several Members indicated that they 
would continue to extend technical assistance to  facilitate Lao PDR's accession to the WTO.  
Lao PDR was a beneficiary of the Enhanced Integrat ed Framework.  The country's status as an LDC 
was recognized, and in keeping with WTO Ministeria l Declarations, Decisions and the Guidelines for 
LDCs Accession, this would be a relevant factor in establishing the terms of accession for Lao PDR.   
7. The Working Party reviewed the economic polici es and foreign trade regime of Lao PDR and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by Members of the Working Party on the various aspects of Lao PDR's foreign trade regime, and on the terms and 
conditions of Lao PDR 's accession to the WTO, ar e summarized below in paragraphs 8 to [..].    WT/ACC/SPEC/LAO/4 
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  II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 8. The representative of Lao PDR said that contro lling inflation and mainta ining exchange rate 
stability were the main aims of monetary policy.   The central bank - the Bank of Lao PDR (BOL) - 
was in charge of monetary policy and supervised the banking sector pursuant to Law No. 05/95 "On the Bank of Lao PDR" of 14 October 1995 w ith amendments of 14 October 1999.  Money supply 
expansion was calibrated to meet in flation and growth targets.  Alt hough the Asian financial crisis had 
pushed annual inflation to 129 per cent in 1999, th e economy had stabilized once again, and inflation 
had returned to the single-digit level of the 1990s.  The recent global financial crisis had little direct 
impact on the economy of Lao PDR.  The rate of  inflation had amounted to 4.5 per cent in 2007, 
7.6 per cent in 2008 due to price hikes on fuel and food, before dropping to 3.9 per cent in 2009.   
9. The BOL regulated the monetary system through indirect monetary policy instruments such 
as mandatory reserve requirements, the issuance of bonds, overdraft facilitie s for commercial bank 
borrowing, and discount facilities for loans secured against treasury bills and BOL bonds; and, when 
necessary, with direct monetary policy interventio ns, including credit/deposit ratios, direct sale of 
foreign exchange to the market, and moral suasion to limit the credit expansion or to smooth 
transitory fluctuations in the exchange rate.  Th e BOL had so far been successful in implementing its 
monetary policy framework with a view to mainta ining low inflation and a stable exchange rate 
within a managed float exchange rate system.  In 2009, the BOL had reduced the short-term interest 
rate from 7 to 4 per cent; maintained the mandato ry reserve requirement ratio at 5 per cent for 
deposits in local currency, and at 10 per cent fo r foreign currency deposits; continued to facilitate 
open-market-operations; and issued BOL bonds to m obilize funds for infrastructure development.    
10. The banking sector in Lao PDR comprised the BOL, four State-owned commercial banks, 
two joint venture commercial banks, seven privately- owned banks and ten bran ches of foreign banks.  
Banking activities permitted in Lao PDR were sti pulated in Law No. 03/NA "On Commercial Banks" 
of 26 December 2006, replacing Decree Law No. 01/NA of 11 March 1997.  The implementing decree to the new law was in preparation.  No tification No. 0777/PMO of 20 June 2001 outlined 
Lao PDR's plans for the long-term development of  the financial and banking sector.  A financial 
sector strategy was in preparation.  
11. Since 1988, public finances in Lao PDR had b een overhauled with emphasis on improving the 
tax system and controlling government expenditures for fiscal balance and sustainability.  However, 
with increased outlays for health, education and basi c infrastructure in the 1990s, public expenditure WT/ACC/SPEC/LAO/4 
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  had outpaced government revenue.  Over the peri od 1994 - 1998, expenditure had accounted for 21 to 
27 per cent of GDP, and revenue between 11 and 13 pe r cent of GDP.  The fiscal deficit in 1998 had 
amounted to 12.8 per cent of GDP.  Helped by tax changes, revenue had been higher than expected 
since the fiscal year 2005/06, while expenditures had been in line with established targets.  Over the 
period 2004/05 - 2008/09, the revenue to GDP ratio had ranged from 12.1 to 17.4 per cent, while the 
expenditure ratio had been in the 19 to 20.7 per cen t range.  Net domestic fina ncing had continued to 
decline.   
12. The Tax Law No. 04/95/NA of 14 October 1995 (with amendments of 28 September 1998) 
had brought about improvements in the tax system  by reducing the profit tax rates, introducing 
ad valorem  customs duties, enlarging the income tax base,  and enhancing the role of excise taxes.  
The tax regime had been transformed further with  the promulgation of a new Tax Law No. 04/NA of 
19 February 2005.  Lao PDR was aiming to broaden its direct and indirect tax base, improve tax 
efficiency, increase revenues from domestic taxes,  and reduce the dependence on border duties.  
A break-down of government re venue from 2004/05 to 2008/09 is presented in Table 1.   
Table 1:  Government Revenue
 
Government revenue (KN billion) 
Fiscal year 2004/05 2005/06 2006/07 2007/08  2008/09 
Tax revenue 2,803.1 3,641.1 4,583.3 5,627.1 6,207.6 
Profit tax 307.2 458.9 955.4 1,321.6 1,303.0 
Income tax 214.9 234.2 255.1 333.1    424.7 
Land tax 27.6 30.1 44.8 78.0      63.9 
Business licences 2.2 6.1 1.5 2.5        3.7 
Minimum tax 12.8 22.2 21.2 21.5       29.2 
Turnover tax 673.5 887.1 1,043.3 1,228.5   1,401.0  
Excise tax 522.8 800.3 987.3 1,190.0   1,432.5  
Tax on foreign trade 472.0 567.6 573.0 696.5      774.0 
- Import duties 428.6 514.5 548.1 674.2      726.2 
- Export duties 43.4 53.1 24 .9 22.3       48.8 
Registration fees 17.6 24.7 49.0 13.9       26.7 
Other fees 211.2 162.6 156.2 185.6 - 
Natural resource taxes 94.8 217.6 283.8 316.5     219.5 
Timber royalties 189.4 172.5 166.3 105.2      78.1 
Hydro royalties 57.1 57.2 46.4 56.4     77.7 
Non-tax revenue 584.3 624.9 604.4 812.0   822.8 
Leasing income 44.2 36.1 32.7 27.2     41.1 
Concessions 8.1 7.4 8.1 17.9     30.7 
Fines 15.3 23.8 30.3  31.4     25.3 
Administrative fees 69.2 89.2 83.1 100.9     76.0 
Dividends 177.8 174.8 153.4 293.3   338.4 
Interest 47.9 65.0 65.6 105.3     94.7 
Overflight charges 221.8 228.6 231.2 235.4   203.4 
Total Revenue 3,387.4 4,266.0 5,187.7 6,439.1 7,030.4 
  WT/ACC/SPEC/LAO/4 
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  - Foreign Exchange and Payments 
13. Some Members noted that the national curre ncy of Lao PDR - the kip (KN) - was not 
convertible, and that the IMF had c onducted an analysis to determine wh at restrictions remained that 
prevented Lao PDR from accepting the obligati ons of Article VIII of the IMF's Articles 
of Agreement, including the elimination of forei gn exchange restrictions on the making of payments 
and transfers for current international transactions .  Lao PDR was requested to describe its existing 
foreign exchange regime, indicate how work w as proceeding to enable Lao PDR to accept the 
obligations of IMF Article VIII, and provide a timetabl e for the elimination of restrictions such as the 
repatriation, surrender, and ta x certificate requirements.   
14. The representative of Lao PDR replied that the legal framework on foreign exchange 
management implemented by the Bank of La o PDR (BOL) had been founded on Decree Law 
No. 1/OP "On the Management of Foreign Excha nge and Precious Metals" of 9 September 2002 and 
its implementing regulations (In struction No. 2/BOL of 29 Augus t 2003 and Additional Instruction 
No. 1/BOL of 5 February 2004), and Regulation No. 1/BOL of 2000.  He stated that the IMF had 
concluded that the practice followed by the BOL had resulted in de facto  liberalization of current 
account transactions for some time.  Following the re view and the amendment of certain provisions in 
Lao PDR's legal framework, the Government of La o PDR had formally accepted the obligations of 
Article VIII, Sections 2, 3 and 4 of the IMF's Articles of Agreement on 28 May 2010. 
15. Decree Law No. 1/OP had been amended, specifi cally with respect to Article 13 (about the 
exchange rate being determined by the market) and Article 27 (the need for tax certificates for 
remitting profits abroad).  The amended Decree Law had been promulgated in March 2008 (Decree 
Law No. 1/OP of 17 March 2008).  Notification No. 57/BOL had been adopted on 6 March 2008.  
The Notification facilitated the acquisition of fo reign exchange by the public.  Purchases not 
exceeding 20 million kip per day (per person) requi red only the presentation of  an identity card.  
The BOL had reviewed Instruction No. 2/BOL (2 003) and the Additional Instruction No. 1/BOL 
(2004) relating to the obligation that foreign exch ange earnings be repatria ted within 120 days, and 
that resident exporters, except those who had been given specific permission (i.e. income used to repay external loans approved by the BOL, paymen t for letters of credit approved by the BOL, or 
conditions stipulated in a contract between a forei gn investor and the Government of Lao PDR), were 
required to remit their proceeds through any commerci al bank located in Lao PDR within a stipulated 
time limit.  Following this review, Instructio n No. 2/BOL (2003) and Additional Instruction 
No.1/BOL (2004) were replaced by Instruction No . 1/BOL "On the Implementation of Decree Law on 
the Management of Foreign Currency and Precious Me tals" of 2 April 2010.  Lao PDR also intended WT/ACC/SPEC/LAO/4 
Page 6  
 
  to abolish Regulation No.1/BOL (2000) on fo reign exchange surrender by wood exporters by 
December 2009.  The Regulation required exporters  of wood and wood products to sell a portion of 
their net foreign exchange proceeds - 100 per cent for logs, 80 per cent for sawn timber, and 
60 per cent for wood products - to State-owned commercial banks in Lao PDR.   
16. The representative of Lao PDR said that forei gn exchange transactions were handled by 
commercial banks, foreign exchange bureaus or ot her business entities authorized by the BOL.  
Residents could keep all their foreign exchange proceeds in foreign exchange accounts; no retention 
ratio was specified.  Residents in need of local  currency for domestic payments could sell foreign 
currency to the commercial banks or authorized fore ign exchange bureaus.  Pursuant to Notification 
No. 53/BOL, foreign exchange bureaus only required a copy of an identity card to buy or sell foreign 
exchange to the general public.  In accordance with  Notification No. 57/BOL, foreign exchange could 
be purchased for (i) payment of imported goods; (ii) payment of fees for import or export related 
services, including transportation, insurance and ware house charges; (iii) settlement of foreign debt 
approved by the relevant authorities; (iv) transfer or repatriation of profit, interest and capital from 
foreign investments made pursuant to Lao PDR's in vestment legislation; (v) investment in capital 
assets abroad with government approval; (vi) the ex penses of Lao PDR's embassies, representatives or 
other residents authorized by his Government to  operate abroad; (vii) overseas travel (official 
business, commercial purposes, medical treatment, studies, tourism or visits) within limits established by the BOL; (viii) expenses of students and academics duly authorized by the Mi nistry of Education, 
and within limits established by th e BOL; and (ix) emigrating residents, within limits set by the BOL, 
to cover travel expenses and, as authorized, to ex port their capital.  No quotas or prior approval 
requirements existed for the purchase of foreign exchange through banks by residents or non-
residents.  Asked about "additional administrativ e requirements" applicable to foreign currency 
transactions above US$10, 000, he said that these requirements referred to withdrawals of cash from 
personal bank accounts in excess of the equivalent of  US$10,000 per day.  In such cases, the bank was 
obliged to conduct due diligence or a "know-your-customer" procedure.  
17. In the absence of full convertibility, the Ba nk of Lao PDR used exchange rates from 
international and domestic (official and parallel) ma rkets to calculate a weighted average exchange 
rate between the Lao kip and the US dollar at the end of each trading day.  This rate became the 
reference rate for the following day, and served as the basis for the BOL (Operations Department) and 
the commercial banks to determin e the buying and selling rates vis-à-vis their customers, e.g. the 
Government, international organizati ons, and the general public.  In the first four months of 2009, the 
average exchange rate had amounted to 8,564 kip per US$1.    WT/ACC/SPEC/LAO/4 
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  18. As for Lao PDR's balance-of-payments situati on, he said that Lao PDR's merchandise trade 
balance was usually in deficit (US $3.72 million in 2009), but the overall balance had been in surplus 
since 2002.  Gross foreign reserves had been at leve ls providing 5.4 months of import cover in 2009. 
The external debt to GDP ratio had declined fro m 71.3 per cent in 2002 to 48.5 per cent in 2008.  
The debt-service ratio had fallen over the same pe riod from 8.6 per cent in 2002 to 4.6 per cent in 
2008. 
- Investment Regime 
19. The representative of Lao PDR said that La w No. 02/NA "On Investment Promotion" of 
8 July 2009 regulated investments and investors' ri ghts and obligations in Lao PDR.  The new Law 
had unified and replaced Law No. 10/NA "On the Promotion of Domestic Investment" (that previously governed domestic investments) a nd Law No. 11/NA "On the Promotion of Foreign 
Investment" of 22 October 2004 (that previously gov erned foreign investments).  The implementing 
regulations - Decree Nos. 300/PM and 301/PM of 12  October 2005 – had been abrogated.  He added 
that an implementing decree for the Investment Promotion Law No. 02/NA was in preparation and 
would be adopted by the end of 2010.   
20. In accordance with  Law No. 02/NA "On Investment Promotion", investment could be wholly 
domestic or foreign owned; a joint venture betw een domestic and foreign investors; or a joint-
business investment contract.  The Law further distinguished between investment in general 
businesses; concession businesses; and in border or special economic zones.  The list of concession 
businesses would be elaborated in the decree implementing the Investment Promotion Law.  Article 4 
of Law No. 02/NA provided that the Government s hould promote and facilitate investments in all 
sectors, businesses and areas across Lao PDR.   Exceptions were with regard to threats to national security; the environment; public health; and na tional culture, as reflected in Decree No. 68/PM 
"On Controlled Business" (Negative List) of 28 Ap ril 2008.  The Negative List was being reviewed 
and amended (Table 2). 
21. Investment approval was not automatic.  General business investments required an 
application to a one-stop-service at the Enterprise Registry Office under the Ministry of Industry and 
Commerce or the Provincial Industry and Commer ce Office.  Concession business investments 
required an investment application to a one-stop-servi ce at the Ministry of Planning and Investment or 
the Provincial Planning and Investment Office.  I nvestors in border or special economic zones were 
required to submit an application to a one-stop-servi ce within the zone.  Data on foreign investment 
projects approved since 2003 is presented in Table 3.   WT/ACC/SPEC/LAO/4 
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  Table 3:  Approved Foreign Investment Projects (2003-2009)
 
Years 2003 2004 2005 2006 2007 2008 2009 
Number of projects 178 161 143 171 191 136 190 
Value (US$ million) 465.6 533.1 1,245.3 2,699.7 1,136.9 1,215.5 4,312.8 
 
22. Investment projects were subject to a re gistration fee established in accordance with 
Presidential Decree No. 03/PO "On Fees and Service Charges" of 19 November 2008 (Table 4).  The 
fee had previously been stipulated in US dollars for foreign investment projects, but was now 
stipulated in kip for all investments.  In the past , the Ministry of Finance had also charged a fee for 
registration as a taxpayer equal to 0.1 per cent of th e value of the investment.  This fee had been 
abolished through Prime Minister Instruction No . 04/PM "On Streamlining Investment Project 
Approval Procedure and Investment Promotion" of 3 March 2005.  In addition to the registration fee, 
the Ministry of Planning and Investment collect ed a fee per investment application (KN 50,000 
per form), for the issue of investment licences (KN 70,000 per form), and a service fee for the 
evaluation of investment proposals (KN 500,000 per report).   
Table 4:  Registration Fees for Foreign and Domestic Enterprises  
No. Enterprise's register ed capital Registration fee 
 
1. 2. 
3. 
4. 
5. 
6. 7. 
8. 
9. 10.  
Less than 1,000,000 kip From 1,000,001 to 10,000,000 kip 
From 10,000,001 to 20,000,000 kip 
From 20,000,001 to 50,000,000 kip 
From 50,000,001 to 100,000,000 kip 
From 100,000,001 to 400,000,000 kip From 400,000,001 to 1,000,000,000 kip 
From 1,000,000,001 to 10,000,000,000 kip 
From 10,000,000,001 to 20,000,000,000 kip Above 20,000,000,001 kip  
Nil 
20,000  kip 
50,000  kip 
100,000  kip 
300,000  kip 
500,000  kip 
1,000,000  kip 
2,000,000  kip 
3,000,000  kip 5,000,000  kip 
 
23. Asked whether foreign enterprises registered in  Lao PDR were allowed to establish their own 
business chambers or join the Lao National Ch amber of Commerce and Industry (LNCCI), the 
representative of Lao PDR said that any lawfully re gistered enterprise, domestic or foreign-owned, 
could apply for membership to the LNCCI.  The Statutes of the LNCCI did not provide for the 
creation of separate chambers for foreign-owned enterprises.   
24. As for investment incentives, the representa tive of Lao PDR said that, being an LDC, 
Lao PDR did not have the resources to provide any fi nancial support or credit.  However, in terms of 
revenue foregone, Law No. 10/NA and implementing D ecree No. 300/PM stipulated incentives in the 
form of profit tax exemptions up to seven years,  reduced profit tax rates, exemption from export 
duties, and import duty exemptions on raw materi als, machinery and equipment for domestically-
funded export-oriented projects or investment promot ing local content.  Foreign investment was also  WT/ACC/SPEC/LAO/4 
 Page 9 
 
 
  eligible for the same tax and duty exempti ons or reductions, according to Article 18 of 
Law No. 11/NA and Decree No. 301/PM, Article 34 and Annex 2.  The incentives provided under 
Law Nos. 10/NA and 11/NA and its implementing decr ees could be carried forward until the end of 
their exemption period.  The promoted sectors were agriculture, industry, handcrafts and services based on Government priorities for poverty reduction,  employment, etc.  The Government had also 
designated zones, namely Zone 1 with insuffici ent socio-economic infrastructure to facilitate 
investments, e.g. mountainous remote regions; Zone 2 with socio-economic infrastructure to partially 
facilitate investments; and Zone 3 with infrastruct ure favourable for investments.  To qualify for these 
investment incentives in promoted sectors or regions (i.e. Zones 1, 2 or 3), companies were required 
to fulfil a minimum of three among six stipulated c onditions, namely (i) hiring at least 90 per cent of 
the labour force locally; (ii) using model technolog y; (iii) preserving the environment in accordance 
with the Law "On Environmental Protection"; (iv) a promoted activity complementing other domestic 
production; (v) using more than 50 per cent of local  raw materials; and (vi) exporting 80 per cent or 
more of the total output.  Under the local conten t requirement, import duty remission or exemption 
was only granted for products or materials not av ailable domestically.  In response to a specific 
question, he added that all forms of foreign inv estment qualified for the in centives, except for the 
production of construction materials - if the foreign share of the investment exceeded 70 per cent, or 
the registered capital of the enterp rise was less than US$1 million.   
25. Some Members urged Lao PDR to eliminate WT O incompatible investment measures upon 
accession.  The export performance and local conten t requirements were noted, as well as provisions 
in Law No. 11/NA requiring foreign-invested compani es to hire at least 90 per cent of the work force 
locally (Article 12.5) and obliging them to train,  upgrade professional skills, and transfer technology 
to the local employees (Article 13).  While recognizing the importance of technology transfer, some Members did not consider mandatory provisions on technology transfer helpful for the investment 
climate; the 90 per cent local workforce requirement  was discriminatory as well as counterproductive:  
and incentives linked to minimum 50 per cent local  raw material were incompatible with 
the Agreement on Trade-Related I nvestment Measures and Article 27 of the Agreement on Subsidies 
and Countervailing Measures.  In reply, the representative of Lao PDR said that the purpose of the 
local workforce requirement was to ensure that foreign direct investment created job opportunities for 
the population.  According to his understanding,  Annex 1A of the WTO Agreement contained no 
obligations related to granting access to Lao PDR' s labour market.  Similarly, the training and 
technology transfer provisions had been introduced to  allow the benefits of FDI to be shared more 
equitably.  The requirements pertaining to local wo rkforce, training and technology transfer were not 
TRIMs measures in his opinion.  Article 25 of the Labour Law No. 06/NA of 27 December 2006 
allowed foreign-invested companies to hire up to  10 per cent unskilled foreign labour, and 20 per cent WT/ACC/SPEC/LAO/4 
Page 10  
 
  skilled labour.  Permission to engage more forei gn labour could be sought from the Prime Minister's 
Office.  As for export performance and local cont ent requirements, his Government would seek to 
avail of the flexibilities provided for in Article 27 of the Agreement on Subsidies and Countervailing 
Measures and the transitional arrangements in respect  of the TRIMs Agreement available to LDCs in 
the Ministerial Declaration of the Sixth WTO Ministerial Conference (paragraphs 35-36 and Annex F).  He added that the local content requi rements in Investment Laws Nos. 10/NA and 11/NA 
and their implementing decrees had been eliminated in the new Investment Promotion Law 
No. 02/NA. 
26. With the promulgation of Law No. 02/NA, inv estors could, upon written request, receive the 
incentives available under the new inv estment regime.  The Law stipul ated incentives in the form of 
profit tax, import and export duty exemptions.  To  encourage investments in promoted sectors or 
regions, profit tax exemptions  were granted for four to ten years in Zone 1; two to six years in Zone 2; 
and one to four years in Zone 3.  Special incen tives in the form of rental or land concessions (from 
three to 15 years) were extended to investment s in hospitals, kindergar tens, schools, vocational 
schools, colleges, universities, research centres a nd public utilities.  Investments in these activities 
were also eligible for an additional five year pr ofit tax exemption.  Import duty exemptions were 
granted for the importation of raw materials, vehicles and equipment used as production inputs 
(Article 52 of Law No. 02/NA).  None of the inve stment incentives extended, pursuant to the Law 
No. 02/NA "On Investment Promotion", were conti ngent upon local content or export performance 
requirements.      
- State Ownership and Privatization 
27. The representative of Lao PDR said that the limited period of central planning in Lao PDR 
had mitigated the transition to a market economy.  The role of the State had been scaled down with 
the number of State-owned enterprises dropping from 800 in 1990 to 37 enterprises in 2002 (Table 5).  
Although precise estimates were not available, th e 37 State-owned enterprises were considered to 
employ less than 15,000 people and accounted for approximately 4 per cent of Lao PDR's GDP in 
2002.     
28. Most State-owned enterprises had been privati zed in the 1990s, and the economic significance 
of the State-owned sector was now, in his opinion, similar to that in many market economies.  
Privatization had occurred in services sectors such as telecommunications, transportation, insurance, 
real estate and tourism.  The preferred method of pr ivatization was a joint venture model in which the 
State retained 51 per cent ownership initially, and th en reduced its share at subsequent stages.    WT/ACC/SPEC/LAO/4 
 Page 11 
 
 
  29. Asked whether retaining majority State ownership might restrain the privatized enterprises in 
their efforts to improve efficiency, and whether fore ign investors would be able to take control as the 
State was reducing its share, the representative of Lao PDR said that the 37 enterprises would remain 
majority State-owned until his Government would c onsider it feasible to reduce its share.  Foreign 
ownership of such stakes could be expected, and th e granting of control over some of the privatized 
enterprises would be considered.   
30. He stated that Lao PDR at present had no plans to privatize the remaining 37 State-owned 
enterprises, which were considered important for national security, defence, and economic and social 
development.  He noted that a restructuring pr ogramme had been initiated for certain enterprises, 
i.e. Electricité du Laos; Lao Airlines; Lao Nationa l Tourism; the State-owned commercial banks; and 
in the supply of water (decentralization of the Vien tiane Municipality Authorit y).  No timetable had 
been set for the restructuring of these enterprises.  Enterprises which were profitable, considered well 
managed, and in need of capital to expand operations  would be prime candidates to be listed in the 
securities market at a future date .  However, the establishment of a securities market in Lao PDR was 
still under study.  Privatization of  the State-owned commercial banks was considered premature as the 
banks continued to hold a large portion of non-performing loans.   
- Pricing Policies 
31. The representative of Lao PDR said that pri ces for most goods and services were set by 
market forces.  Prime Minister's  Decree No. 207/PM of 11 October 2001 authorized the Ministry of 
Industry and Commerce to monitor prices or institute  price controls.  Based on the Prime Minister's 
Decree, the Ministry had issued Instruction No. 0334/MOC/ITD of 22 March 2002, making some 30 products/product groups s ubject to price controls or surveillance (Table 6(a) and 6(b)).  Instruction 
No. 0334/MOC/ITD was being revised to redu ce the product coverage of these measures.  
Table 6(a):  Price Controls in Lao PDR
 
 HS Number Product description Measure 
1. 2710, 2711 Fuel and gas 
2. 7213-7215 All kinds of steel for construction 
3. 2523 Cement Maximum prices 
4. 1006 Rice Minimum prices 
 
 
Table 6(b):  Price Surveillance in Lao PDR  
 HS Number Product description 
1. 39,18, 4409, 6904, 
6905, 6907, 6908 Roof, floor and wall tiles 
2. 7907 Roof made of zinc WT/ACC/SPEC/LAO/4 
Page 12  
 
   HS Number Product description 
3. 4407 Sawn wood 
4. 3208-3210 All kinds of house paint  
5. 3917 PVC pipes 
6. 8701 Tractors 
7. 8413 Water pumps 
8. 8432, 8433 Harvesting or threshing machines 
9. 31 Fertilizer 
10. 2309 Animal feed 
11. 8437 Milling machinery (of cereals and vegetables) 
12. 8437.20 Milling machinery (of rice) 
13. 8712 Bicycles 
14. 8711 Motorcycles 
15.  Student clothing 
16.  Writing tools 
17.  Raw materials for factories 
18. 30 Medicines 
19. 1701, 1702 Sugar 
20. 2103.10.00 Soya sauce 
21. 2103.90.30 Fish sauce 
22. 2922.42.20 Monosodium glutamate 
23. 1507, 1511, 1512, 1513 Vegetable oil 
24. 1101, 1102, 1106 Flour 
25. 0201, 0202, 0203, 
0207, 0209, 0210, 1602 Meat (cattle, pork and poultry) 
26. 03 Sea fish and fresh water fish 
 
32. Price surveillance did not imply any governme nt intervention in the market, but was 
principally a monitoring device for goods where pr ice hikes could have severe repercussions on 
households.  The measure essentially implied insp ection by officials from the Internal Trade 
Department of the Ministry of Industry and Co mmerce or the Provincial Offices of Industry and 
Commerce.  The inspectors controlled that traders di splayed the prices of their products appropriately, 
and conducted spot checks to ensure adherence to th e pricing regulations.  Traders were required to 
maintain proper records and cooperate fully with the inspecting officials.   
33. For rice, price controls implied a minimum price in support of farmers' incomes.  
The minimum price for rice in the husk was tabulat ed annually on the basis of production costs.  
Maximum prices applied to fuel and gas - all of which was imported – and to domestically-produced 
and imported construction steel and cement.  The maximum price was guided by the consumer price 
index and calculated by the suppliers, who made allowances for all costs and a profit margin.  
The proposed prices were considered by the Internal  Trade Department of the Ministry of Industry 
and Commerce, and the Department monitored the adherence to the approved maximum prices.   
34. [The representative of Lao PDR confirmed that 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 Agr eement on Trade in Services (GATS), and Article  WT/ACC/SPEC/LAO/4 
 Page 13 
 
 
  4 of the Agreement on Agriculture.  He further confirme d that, to this end, in the application of price 
controls, Lao PDR would take account of the inte rests 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 woul d continue to do so after 
accession.  The Working Party took note of th ese commitments.][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 for in Articles III.4 and III.9 of  the GATT 1994, and Article 4 of the Agreement 
on Agriculture, and in Article VIII of the General Agreement on Trade in Services.  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.] 
- Competition Policy 
35. The representative of Lao PDR said that Decr ee No. 15/PMO "On Trade Competition" of 
4 February 2004 provided the legal basis for the promotion of fair competition in Lao PDR.  
The Decree provided for rules, measures and en forcement mechanisms to regulate monopolization 
and all forms of unfair competition in trade, aiming at promoting fair trade, protecting the rights and 
legal interests of consumers, and encouraging business activities to function efficiently in Lao PDR.  
The Decree foresaw the establishment of a Trade Competition Committee within the Internal Trade 
Department of the Ministry of Industry and Commerce, and his authorities were in the process of 
establishing this enforcement agency.   
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government 
36. The representative of Lao PDR said that exte nsive powers were vested in the National 
Assembly, granted through the Constitution of  the Lao PDR - its first, promulgated on 
15 August 1991, and subsequent ly amended on 6 May 2003.  The 115-member Assembly had 
exclusive authority to decide on matters of wa r and peace; to enact or amend the Constitution and 
laws; to elect or remove the President, the Vice -President (on the recommendation of the National 
Assembly Standing Committee), the President of  the People's Supreme Court and the Public 
Prosecutor-General; to appoint or remove member s of the Government on the recommendation of the 
President; to create or dissolve ministries; to introdu ce or abolish taxes; to ratify or reject Lao PDR's 
accession to international treaties; to grant amnest ies; and to exercise any other rights or duties WT/ACC/SPEC/LAO/4 
Page 14  
 
  prescribed by law.  The National Assembly supervi sed and oversaw the activities of the executive and 
judicial branches pursuant to Chapter V of the 2003 Constitution.   
37. The executive comprised the President, the Prime Minister and his/her Government and local 
authorities (the Governors of Provinces, the Chiefs of Districts and the Heads of Villages).  The President was the Head of State and the Chie f of the Armed Forces.  The National Assembly 
elected the President by two thirds majority for five  year terms in office.  Presidential powers, with 
the approval of the National Assembly, included appoi nting the Prime Minister for five-year terms; 
and issuing decrees.  The Government of Lao PDR consisted of the Prime Minister, the Deputy Prime 
Ministers, Ministers and Chairmen of ministry-equiv alent authorities.  The Prime Minister supervised 
the work of the ministries and other government organizations.  The Govern ment was responsible for 
implementing the Constitution, laws and resolu tions adopted by the National Assembly and 
presidential edicts/ordinances and decrees; prepar ing socio-economic development plans and annual 
State budgets for submission to the National Assembly ; the functioning of all branches of central and 
local administration; suspending or revoking deci sions and instructions of ministries, other 
government organizations or local administration if contrary to existing laws; and signing and 
implementing treaties with foreign States.   
38. The Ministry of Industry and Commerce was resp onsible for international and bilateral trade 
policy and his Government's interests in the WTO.  Other line ministries  or agencies involved in trade or 
tariff policy matters were the Prime Minister's Office, the Ministry of Finance (including the Customs 
Department), the Ministry of Agriculture and Forest ry (agricultural policy, sa nitary and phytosanitary 
measures), the Ministry of Health  (health safety relating to food a nd drugs), the Ministry of Public 
Works and Transport (TBT), the Ministry of Energy and Mining (TBT), the Minist ry of Public Security 
(TBT), the Ministry of Informa tion and Culture (copyright), the Water Resources and Environment 
Administration (environmental protection) and the National Authority for Science and Technology 
(TBT and protection of intellectual property rights).   
39. The judiciary in Lao PDR consisted of the Dist rict and Municipal Courts; the Provincial and 
City Courts (Court of First Instance); Courts of Appeal; and the People's Supreme Court.  District Courts, the lowest tier of the court system, dealt wi th civil or criminal cases involving claims of less 
than KN 500,000 or prison terms of less than two years;  appeals of the decisions of the District Courts 
and other civil and criminal cases were addressed to  the Provincial Courts or City Court (Court of 
First Instance).  Appeals of lower-court decisions  could be brought to the Court of Appeal, the 
Supreme Court being the last resort.  According to  the new Law on Courts, three Courts of Appeal  WT/ACC/SPEC/LAO/4 
 Page 15 
 
 
  had been established (in Vientiane Capital and th e provinces of Luang Prabang and Champasak) to 
reduce the workload of the Supreme Court.   
40. National Assembly Resolution No. 05/NA of 21 October 2003, amending the Law "On the 
People's Courts of Lao PDR", ha d established civil and commercial chambers attached to the 
provincial courts, appellate  courts and the Supreme Court of Lao PDR.  In accordance with Article 48 
of the Law No. 02/NA "On Civil Procedures" of 15 May 2004, commercial chambers had the 
jurisdiction to adjudicate on busi ness or commercial matters, including cases relating to business or 
commercial contracts and documents (promissory notes,  bills of exchange, che ques, etc.); commercial 
loan Agreements; the bankruptcy and liquidati on of enterprises; cases involving business or 
commercial relationships concerning the importation or exportation of goods, including trade support 
services; and violations of copyright and trademar ks.  The commercial chambers did not have the 
authority to rule on trade-related admini strative decisions of the Government.   
41. On the right to appeal administrative decisions to  the courts or an independent tribunal in line 
with Article X of the GATT 1994 and WTO requirements, the representative of Lao PDR said that natural or legal persons had the right  to lodge complaints in the civil chambers of the courts to protect 
their interests or claims resulting from governme ntal action (Article 47 of Law No. 02/NA "On Civil 
Procedures" of 15 May 2004).  Few administrative ru lings on trade issues had been requested to be 
redressed in the court system since the entry into force of the Law.  Complaints against administrative 
rulings could be lodged by importers or exporter s through administrative or judicial procedures.  
Thus, customs decisions could be appealed to the higher customs authorities and, if not appropriately 
settled, a petition could be filed in court.  The est ablishment of a specialized  Commercial Court or an 
administrative tribunal was not being contemplated at this stage.   
42. The representative of Lao PDR said that Decree No. 106/PM "On the Resolution of Economic 
Disputes" of 15 July 1994 provided a mechanism for dispute resolution, including mediation and 
arbitration procedures.  The Decree had been upgraded to a Law No. 02/NA "On Resolution of 
Economic Disputes" of 19 May 2005.  An Offi ce of Economic Disputes Resolution had been 
established in the Ministry of Justice.  Arbitra tion sub-centres (branches) had been created in the 
Luang Prabang, Oudomxay and Savannakhet provin ces.  Economic disputes (apart from appeals or 
complaints against the decisions of government bodies) could be brought to the Office of Economic 
Disputes Resolution within three years of the disput e.  Decisions or awards  by the Office of Economic 
Dispute Resolution could be appealed in the co mmercial chambers attached to the courts.   
43. [The representative of Lao PDR confirmed that the current Constitution, laws and regulations 
provide the necessary institutional base for the prom pt administrative and judicial review of the WT/ACC/SPEC/LAO/4 
Page 16  
 
  Government's actions.  He furthe r confirmed that from the date of accession, Lao PDR's laws would 
provide individuals or enterprises affected by an y 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 Countervailin g 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 procedures for 
appeal would cover actions relating to the im plementation of national treatment, conformity 
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 responsible for such reviews 
would be impartial and independent of the agency  entrusted with administrative enforcement and 
would not have any substantial interest in the outco me of the matter.  Notice of the decision on appeal 
would be given to the appellant and the reasons fo r such a decision would be provided in writing.  
The Working Party took note of these commitm ents.][Lao PDR confirmed that the current 
constitution, laws and regulati ons provide the necessary institutional base for the prompt 
administrative and judicial review of the administra tive actions.  Lao PDR further confirmed that from 
the date of accession, its laws and regulations w ould provide individuals or enterprises affected by 
any administrative action subject to WTO provisions, th e right to appeal such action to the courts or 
other independent tribunal in conformity with WT O obligations, including those set out in Article X 
of the GATT 1994, Article 23 of the Agreemen t 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 Intellect ual Property Rights and Article VI of GATS.  
The Working Party took no te of these commitments.] 
44. The representative of Lao PDR said that the hierarchy of legislation comprised - in 
descending order - (i) the Constitution of the Lao PDR;  (ii) Laws adopted by the National Assembly; 
(iii) Edicts/Ordinances promulgated by the Presi dent on the recommendation of the Standing 
Committee of the National Assembly; (iv) Presiden tial Decrees or Orders; (v) Prime Minister's 
Decrees; and (vi) Government resolutions, and instru ctions or decisions of the Prime Minister or 
ministries.  The latter were adopted to implement la ws or decrees.  Although the legislation hierarchy 
did not include treaties and international agreemen ts ratified by Lao PDR (amending or promulgating 
new domestic laws), he noted that such treaties a nd international agreements were placed between the 
Constitution and laws adopted by the National Assembly.  Presidential Decree No. 01/PO 
"On Conclusion, Accession and Implementation of  Treaties" of 7 October 2009 regulated the 
negotiation, ratification and impl ementation procedures of interna tional treaties.  Pursuant to 
Article 31, paragraph 4 of this Decree, internati onal treaties prevailed over national laws in case of  WT/ACC/SPEC/LAO/4 
 Page 17 
 
 
  conflict.  Presidential and Prime Minister decrees or  orders were based on laws or edicts/ordinances 
specifically authorizing the issue of such decrees or  orders.  Only the National Assembly could amend 
the Constitution (Article 97 of the 2003 Constituti on), or ratify Lao PDR's accession to treaties and 
international agreements such as the WTO.  Following approval of Lao PDR's accession terms by the National Assembly, the Prime Minister's office would notify line ministries and publicize the 
ratification.  WTO Agreements would prevail over domestic legislation (exc ept the Constitution) in 
case of conflict.  However, Lao PDR was pursuing a programme of legislative reform - the Plan for 
Building New Laws and Amendment of Laws (2001-200 6) - to introduce WTO-consistent legislation 
and implement WTO provisions.  Laws recently ad opted or amended included the laws on Customs; 
Tax; Petitions; Forestry; Value Added Tax; Comme rcial Banks; State Inspection; Resolution of 
Economic Disputes; the amended Law on Business (renamed the Law on Enterprises); Intellectual 
Property; Livestock Production and Veterinary; and Plant Protection.  The representative of Lao PDR 
updated the Working Party on progress in legislative reform and the outlook for further reforms in 
legislative action plans (document WT/ACC/LAO/9 and its Revisions).   
- Authority of Sub-Central Governments 
45. The representative of Lao PDR said that his country was divided into 16 provinces and 
Vientiane Capital.  The provincial administrati on, comprising representatives of central government 
ministries, administered policies on behalf of - and as determined by - the Government of Lao PDR.  The Office of the Public Prosecutor was responsible for monitoring the full and uniform adherence of 
the laws and regulations by all ministries, minist ry-equivalent bodies, government organisations, local 
administrations, enterprises, and citizens.  The pr ovinces and Vientiane Capital had no authority to set 
tax rates, grant subsidies or regulate trade independe ntly of the central authorities.  The sub-central 
authorities reported regularly to the central government  to ensure that the Government's policies were 
properly implemented.  The Ministry of Industry and Commerce could dispatch envoys to examine 
the implementation of trade-related policies by the local authorities.   
46. [Asked how the central authorities  might address complaints by importers or exporters of sub-
central entities violating WTO provi sions, 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,  and other areas where special regimes for tariffs, taxes and 
regulations were established.  [Article 4 of the Law No. 07/NA "On Resolving of Public Complaints" 
of 9 November 2005][Law No. 50/NA "On the Office of the Public Prosecutor" of 21 October 2003] 
provided the legal redress to companies facing an ap parent breach of WTO obl igations by sub-central WT/ACC/SPEC/LAO/4 
Page 18  
 
  authorities.  He further confirmed that when [appr aised or alerted][informed] of a situation where 
WTO provisions were [allegedly] not being applied or were applied in a non-uniform manner, central 
authorities would [investigate such claims and, if th e 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  
47. The representative of Lao PDR said that busines s entities wishing to engage in importation or 
exportation registered according to  the requirements and procedures laid down in Prime Minister's 
Decree No. 206/PM "On Goods Trading Busine ss" of 10 October 2001 and in Supplementary 
Announcements of the Ministry of Commerce Nos. 0530/MOC of 10 May 2002 and 0538/MOC of 
13 May 2002.  Ministerial Re gulation No. 462/MOC of 1993, which had stipulated eight general criteria 
to be met for import/export regi stration had been revoked with the entry into force of Decree 
No. 206/PM.  Decree No. 205/PM "On Import and Export Manage ment" of 11 October 2001 allowed 
individuals or legal entities with commercial presen ce in Lao PDR (and categorized as investors) to 
engage in import and export activities.  He adde d that Enterprise Law No. 11/NA of 9 November 2005 
also permitted foreign investors with commercial pr esence to engage in import and export activities.  
48. The 2005 Enterprise Law, which replaced the Bu siness Law No. 03/94/NA of 18 July 1994,  
regulated the establishment, ma nagement and operation of busi nesses in Lao PDR.  The Law 
distinguished between private; State;  joint; and collective enterprises.  Enterprises could be established 
in the form of a sole-proprietorship; general or limited partnership; or a private limited or public 
company.  Business registration was effected pur suant to the Enterprise Law and its implementing 
Decree No. 68/PM of 28 April 2008.  The place of registration was either at the ministry or the 
provincial level depending on the nature of the enterp rise and type of activit y.  Registration was at 
ministry level - Internal Trade Department, Mini stry of Industry and Co mmerce - for State-owned 
enterprises established by the central authorities and joint ventures with these enterprises; for enterprises engaged in importation of vehicl es, petroleum and luxury goods, or  exportation of wood and wood 
products; and for foreign-invested enterprises w ith a registered capital of US$200,000 or more.  
Province-level registration at the Vientiane Capita l and Provincial Industry  and Commerce Offices 
applied to other domestic and foreign-invested enterprises, Stat e-owned enterprises established by the 
provincial authorities (and joint ventures with them ), and commercial enterprises engaging in import-
export trade outside the scope regulated by a Ministry .  The registration of en terprises was split between 
the central and provincial authoriti es to overcome human and institu tional capacity constraints and to  WT/ACC/SPEC/LAO/4 
 Page 19 
 
 
  speed up the approval process.  The business regi stration process usually took ten working days, but 
could be extended for an additional three working days in case of controlled businesses (Prime 
Minister's Decree No. 68/PM, Article 3).  Controlled businesses were characterized as highly sensitive 
to national stability, social order, national traditions  and the environment, and, therefore, required the 
permission of, and inspection by, the relevant authori ties, prior to the registration of the enterprise.  
The list of controlled businesses was be ing reviewed and amended (Table 2).   
49. The documentation requirements and evaluation crit eria for registration a pplications were the 
same at the ministerial an d provincial levels.  In addition to th e application form, foreign investors 
submitted a copy of the foreign inve stment licence; sectoral approvals,  as appropriate; a statement of 
assets; the bio-data of the owners  and management, photographs and copi es of their passports or other 
ID; the company's rules (for new enterprises); and proof of power of attorney for persons acting on 
behalf of the owners.  Domestic investors submitte d the application form; a copy of the investment 
licence; sectoral approvals, as appropriate; a statem ent of assets; the bio-da ta of the owner(s) and 
management, photographs and copies of their IDs;  and verification of cr iminal record(s).  
The registration forms to be completed were repr oduced in document WT/ACC/LAO/5, Annex I.  
The administrative fees for the registration forms, company stamp form, and for typing the registration 
certificate was set at KN 132,000 (President ial Decree No. 03/PO of 19 November 2008).   
50. Enterprises engaging in trade for commercial purposes impor ted or exported the goods for 
which they had registered.  The goods were listed in their business cert ificates and verified at the border 
by customs officials.  A trading en terprise wishing to expand the scope of its business to other products 
would submit an application to the Enterprises Regist ry Office of the Internal Trade Department of the 
Ministry of Industry and Commerce (and/or Provincial Industry and Comme rce) and needed to fulfil the 
conditions or requirements manda ted for particular products.  A dditional requirements applied to 
specific goods such as medicines (competency and st orage facilities) a nd fuels and gas (safe handling).  
These requirements applied equally to  domestic and foreign firms.  Impor ters of vehicles,  petroleum and 
luxury goods required verificati on from the provincial authorities before  registering with the Ministry of 
Industry and Commerce.  Importers we re not automatically considered wh olesalers, and an importer was 
not required to also be the distributor of the im ported goods.  Importation by en terprises and individuals 
of goods for own or personal use was permitted subj ect to the applicable laws and regulations.   
51. Some Members requested copies of the legislation governing regi stration and trading rights.  
A Member recalled that the right to import and export, as required under th e GATT 1994, was distinct 
from the business of importing and exporting.  The right to import and export allowed a foreign exporter 
located outside Lao PDR to  enter its products into the customs territory of Lao PDR, clear customs WT/ACC/SPEC/LAO/4 
Page 20  
 
  formalities, and access the same channels of distri bution as domestic firms, with no requirements or 
conditions imposed on such importation unless these were also imposed on the domestic like product. 
This Member understood that a Lao pr oduct could be sold directly to a customer in Lao PDR whereas an 
imported product could not be so sold as it had to be  imported by a Lao company or by a foreign firm 
with domestic presence.  Lao PDR appeared to deny  foreign firms located outside the country the right 
to import as it did not provide for the registration of  such enterprises in Lao PDR.  In this light, the 
representative of Lao PDR was request ed to explain how foreign firms or  individuals would be able to 
exercise trading rights and be the importer or expor ter of record without esta blishment in Lao PDR.  
Lao PDR was asked to modify its rules to provide fo r trading rights consistent  with WTO requirements, 
specifically Articles III and XI of the GATT 1994.  Lao PDR was also  requested to confirm that any 
registration fees for importers and exporters woul d, by the date of acces sion, conform with WTO 
requirements and approximate the co st of services rendered.  This Member suggested that Lao PDR 
develop an action plan specifying dates by whic h Lao PDR intended to re place or amend existing 
legislation concerning tradi ng rights, in conformity with WTO obligations.   
52. The representative of Lao PDR replied that fore ign firms had the same rights to import as Lao 
firms provided the foreign firms were "physically present" in his country, i.e. registered as an import 
and/or export enterprise in accordan ce with relevant laws  and regulations of Lao PDR.  At present, 
Lao PDR did not provide for regist ration as importers or exporters of firms or  individuals located 
outside the country.  However, in light of Memb ers' comments and following consultations with 
stakeholders, he stated that Lao PDR was amen ding Decree No. 205/PM "On Import and Export 
Management" of 11 October 2001 to bring its regime in conformity with WTO obligations on trading 
rights.  These amendments were expected to be adopted in 2010 and implementing regulations would be 
enacted by the end of 2011.    
A. IMPORT REGULATIONS - Ordinary customs duties 
53. The representative of Lao PDR said that Lao PDR had applied the AS EAN Harmonized Tariff 
Nomenclature (AHTN) since 1 October 2003.  Th e nomenclature was curr ently based on the 2007 
version of the Harmonized Commodity Description and Coding System (HS).  All MFN customs duties 
were ad valorem , applied on the c.i.f value of the imported goods , with a median tariff  rate of 5 per cent 
and a weighted average tariff of 14.7 per cent; 9.5 per cent unweighted.  Lao PD R maintained six tariff 
bands with duty rates of 5, 10, 15, 20, 30 and 40 per cent.  Low tariffs (5 to 10 per cent) were set on 
imported raw materials and agricultural inputs.  Th e highest rate applied to "luxury goods" (document 
WT/ACC/LAO/5, Annex IV), or to protect local agricu ltural, handicraft and manu facturing activities.    WT/ACC/SPEC/LAO/4 
 Page 21 
 
 
  54. The Customs Department in the Ministry of Finance was responsible for customs 
administration, and the Ministries of Finance, Industry and Commerc e, and Agriculture and Forestry 
were the government bodies involved in  setting tariff levels.  Any change in the tariff rates required 
approval by the National Assembly, following up on a proposal from the Prime Minister's Office.   
[Lao PDR's revised offer on goods dated 10 Au gust 2010 and the applied tariff rates dated 
2 November 2006 are available for consultation (see  notice in documents WT/ACC/SPEC/LAO/2/Rev.3 
and WT/ACC/LAO/10, respectively).] 
- Other duties and charges 
55. 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 furthe r confirmed that Lao PDR 
would bind "other duties and charges" 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.   
- Tariff rate quotas, tariff exemptions 
56. The representative of Lao PDR said that La o PDR did not apply tariff rate quotas on any 
product.   
57. The representative of Lao PDR noted that, in  accordance with Customs Law No. 05/NA of 
20 May 2005, tariff exemptions applied to a range of imported goods, namely (i) foodstuff carried by 
travellers; (ii) household items when moving resi dence; (iii) inherited objects; (iv) personal 
belongings and gifts carried by delegations; (v) pers onal belongings carried by students, civil servants 
and diplomats of Lao PDR; (vi) education material s for non-commercial use; (vii)  scientific research 
materials and equipment; (viii) fuel residues in tanks of motor vehicles; (ix) fuel for air transport; 
(x) samples of goods for non-commercial use; (xi) gi fts, grants or loans from a foreign government; 
(xii) items for humanitarian assistance; and (xiii) na tional defence and public security equipment.  
He added that the 1 per cent tariff as an invest ment incentive provided pursuant to the Law "On the 
Promotion of Foreign Investment" and the Law "On the Promotion of Domestic Investment" had been 
discontinued.  Under the new investment regime, th e import of raw materials, vehicles and equipment 
used for production were exempt from duty (Article 52 of Law No. 02/NA "On Investment 
Promotion").  No exemptions were discretionary, and the Minister of Finance did not have the 
authority to grant duty exemptions.   WT/ACC/SPEC/LAO/4 
Page 22  
 
  58. The representative of Lao PDR confirmed 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.  Th e Working Party took note of this commitment. 
- Fees and charges for services rendered 
59. Asked to enumerate all fees levied for customs processing or other customs-related fees, the 
representative of Lao PDR said that no such fees had b een established.  He added that the Ministry of 
Health collected a fee for the inspection of impor ted medicines (KN 20,000 per invoice); the biennial 
registration of imported foodstuff s ubject to controls (KN 100,000 per product); and a fee for issuing 
import permits for food products wh ich had been converted from an ad valorem  to a specific rate 
(KN 50,000 per invoice).  The inspection fees for imported food were levied according to the Presidential Decree No. 03/PO "On Fees and Service Charges" of 19 November 2008.  The National 
Authority for Science and Technology collected a qua lity inspection fee on imported fuels, steel bars, 
and cement which had been re viewed, and converted from an ad valorem  to a specific rate 
(Regulation No. 1226/PMO-NAST of 17 July 2009).   
60. [The representative of Lao PDR confirmed that from the date of accession, any fees or 
charges imposed on or in connection with im portation and exportation would be applied in 
accordance with Article VIII of the GATT 1994.  Th e Working Party took note of this commitment.] 
- Application of internal taxes to imports 
61. The representative of Lao PDR said that ex cise duties ranging from 5 to 90 per cent were 
levied on fuels, alcoholic and non-alcoholic beve rages, tobacco products, perfumes and cosmetics, 
playing cards, fireworks, motor vehicles, recreationa l boats, electrical appliances and certain services 
in accordance with the 2005 Tax Law, Article 28.  The goods and services subject to excise tax are 
listed in Table 7.  The current tax rates did not distinguish between imported and domestically-
produced goods.  Previously, and as noted by so me Members, the excise duty regime based on 
Notification No. 1061/MOF of 13 June 2003 had impos ed substantially higher duties on imports than 
on domestic production.  Purchases by embassies and in ternational organizations, or for externally-
funded projects; kerosene; alcohol for medicina l purposes (Accon 90); and exported excisable goods; 
were not subject to excise tax.   
62. The representative of Lao PDR said that Lao PDR applied a turnover tax pursuant to the Tax 
Law No. 04/NA of 19 February 2005.  The turnover  tax constituted a general indirect tax on the 
consumption of goods and services, levied at a rate of  5 or 10 per cent.  According to Article 13 of the  WT/ACC/SPEC/LAO/4 
 Page 23 
 
 
  2005 Tax Law, some goods and services were exempt from the turnover tax, e.g. equipment imported 
for research projects, imported vaccines, educ ation materials, goods and services related to 
afforestation, and goods and services related to aid projects.  The turnover tax was collected at 
customs checkpoints (on imports) and from wholesaler s.  A refund mechanism allowed businesses to 
deduct turnover tax paid on raw materials from their monthly turnover tax bills.  According to Article 14 of the Tax Law, the taxable base for turnover tax on imported goo ds included import duty 
and excise tax, if applicable, whereas domestically -produced goods circulated in Lao PDR were taxed 
on the basis of the actual sales price, the actual value of the contract for goods produced under 
contractual arrangements, and the actual price paid by the customers for sales on credit.   
63. In response to specific questions, he confirmed that goods exempt from import duty were also 
exempt from the turnover tax.  However, goods whic h were zero-rated for the purpose of import duty 
were subject to turnover tax.     
64. He added that Lao PDR had begun replacing th e turnover tax with a value added tax (VAT) 
following the adoption of the Value Added Tax Law No. 04/NA of 26 December 2006 and its implementing Decree No. 270/PMO of 18 September 2009.  VAT was levied at a single rate of 
10 per cent; exports were zero-rated.  Since 1 Jan uary 2010, VAT was initially being applied to 
businesses with annual turnover exceeding KN 400 milli on.  Some 4,500 to 5,000 entities qualified 
for the new regime at present according to Article 15 of the VAT Law.  Enterprises not required to 
comply immediately with the new VAT system would continue to pay turnover tax pursuant to the 
2005 Tax Law, although any small business wishing to re gister for VAT would be able to do so.  The 
concurrent application of VAT and turnover tax wo uld continue for some time due to the complex 
nature of the VAT, limited institutional capacity, and the prevalence of small and medium sized 
enterprises in the Lao economy.  Lao PDR was maki ng every effort to keep its tax regime WTO 
consistent.  Asked whether Lao PDR was contemplating a VAT refund mechanism for 
non-established taxable persons, he said that VAT was not collected on exports.   
65. While appreciating the efforts made by Lao PDR to convert the turnover tax to a VAT, a 
Member noted that the current bifurcated tax system posed a risk of being discriminatory, and requested Lao PDR to table information on its plan s for a unified taxation system.  In reply, the 
representative of Lao PDR said that his Governme nt was reviewing and amending the Tax Law, 
including the provisions on turnover tax in a phased manner to ensure that, upon accession, the tax 
regime would be consistent w ith Article III of the GATT 1994. 
66. The representative of Lao PDR confirmed that, from the date of accession, all laws, 
regulations and other measures relati ng to internal taxes and charges levied on imports would be in WT/ACC/SPEC/LAO/4 
Page 24  
 
  full conformity with its WTO obligations, includ ing Article III of the GATT 1994.  The Working 
Party took note of this commitment. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
67. The representative of Lao PDR said that Lao PDR prohibited the importation of certain types 
of goods considered to pose a serious threat to the national security, public order, health or the 
environment.  In response to requests for further cl arifications and precision to the list of prohibited 
goods presented in document WT/ACC/LAO/5 (Annex II), he said that the Ministry of Industry and 
Commerce had revised the list of controlled goods, th e most recent listing provided in Notification 
No. 2151/MOIC.DIMEX of 30 October 2009.  Presently, eight product groups were subject to import 
prohibition (Table 8).  Asked about "exceptional cases" whereby prohibited goods could be imported 
subject to the approval of the Prime Minister's Office , he said that this referred to, for example, arms 
and ammunition imported by the Ministry of  National Defence for military purposes, or per se  
harmful chemicals imported for medical or scientific  purposes with the endorsement of the Ministry 
of Public Health.  To import prohibited produc ts in these exceptional cases, the importer first 
submitted a request to the relevant authority (e.g. the Ministry of Public Health), and with the 
endorsement of the relevant authority obtained approval from the Prime Minister's Office.   
68. The representative of Lao PDR said that Lao PDR had been streamlining import procedures 
with a view to bringing them into compliance with  the Agreement on Import Licensing Procedures.    
Decree No. 180/PMO "On Import Licensing Procedures" of 7 July 2009 and Prime Minister's Decree 
No. 205/PMO "On Export and Import Management" of  11 October 2001 constituted the legislative 
basis for the licensing regime - with the Ministry of Industry and Commerce issuing Notifications to 
specify the goods subject to approval or non-automa tic or automatic import licensing.  Based on 
Notification No. 2151/MOIC.DIMEX of 30 Octobe r 2009, the updated list of products subject to 
non-automatic import licensing procedures are detailed in Table 9.  Lao PDR was also in the process 
of developing the list of goods subject to automatic licensing.   
69. Decree No. 180/PMO set out the import licensing procedures.  For gold and silver, Decree 
Law No. 01/OP "On the Management of Foreign Exchange and Precious Me tals" of 17 March 2008 
also applied.  The licensing procedures were implem ented uniformly by the Department of Import and 
Export, Ministry of Industry and Commerce or th e Provincial and Vientiane Capital Industry and 
Commerce Offices.  The timeframe for processing applications for automatic and non-automatic 
import licenses was ten and 30 working days, respec tively.  Applications were forwarded to the 
relevant authorities (Table 9).  The approval pro cedures and the agencies involved differed depending 
on the nature of the imported product.        WT/ACC/SPEC/LAO/4 
 Page 25 
 
 
  70. The relevant authorities could elaborate their ow n detailed lists of goods subject to import or 
export control (based on the considerations outlined in Articles 6.4 and 7.4 of Decree No. 180/PM).  
The relevant authorities issued Instructions on the importation of controlled goods under their own 
responsibility.  The Ministry of Public Health had issued, for example, Regulation No. 08/MOH of 
4 January 2005, specifying drugs and substances al lowed to import, substances and drugs "affecting 
the brain", and chemical substances that were either strictly controlled, controlled, or on a watch list 
(Table 9).  He added that the lists of controlled goods were currently under review with a view to 
consolidating them.   
71. Goods which were not prohibited or subject to non-automatic import licensing were in 
principle imported under automatic licence.  Origin ally, Lao PDR had also applied a trade balancing 
policy, i.e. importers had been obliged to export goods to earn the foreign currency used to pay for 
their imports.  This policy had been replaced by in dicative import plans, whereby importers of goods 
not prohibited or otherwise controlled submitted annu al plans specifying the total value of the goods 
to be purchased abroad.  Each shipment would th en be counted against the amount indicated in the 
plan, and goods were cleared through customs w ithout any problem as long as the overall amount had 
not been exhausted.  He added that the indicativ e import plan mechanism had been abolished through 
Order No. 0453/MOIC.DIMEX of 26 March 2007.   
72. A Member requested a rationale for making all im ports subject to some form of control or 
licensing, recalling that Article 2.2(b) of the Agreement on Import Licensing Procedures authorized 
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 cannot be achieved in a 
more appropriate way".  Lao PDR was asked to pr ovide a timeline for revising its import licensing 
regime.   
73. The representative of Lao PDR replied that the licensing regime of Lao PDR continued to 
adapt to WTO requirements regard ing automatic and non-automatic licensing procedures, as well as 
WTO disciplines on TBT and SPS measures.  Decree  No. 180/PM "On Import Licensing Procedures" 
had been approved in 2009.  He stated that the requirements of Article 2.2(b) of the Agreement on 
Import Licensing Procedures were addressed in Article 6 of the Decree No. 180/PM.   The Ministry of 
Industry and Commerce was consulting with other line ministries to streamline and shorten the list of 
goods subject to import licensing.  In this cont ext, the Ministry had issued a Notification 
No. 2151/MOIC.DIMEX with an updated list of goods  subject to non-automatic licensing, and a list 
for automatic licensing procedures was in preparation.   WT/ACC/SPEC/LAO/4 
Page 26  
 
  - Customs valuation 
74. Based on the initial information provided by Lao PDR (document WT/ACC/LAO/3, 
Annex 4), some Members noted that Lao PDR acknowledged that its legislation was not in 
conformity with the Agreement on Implementati on of Article VII of the GATT 1994 (Customs 
Valuation Agreement).  These Members stressed  that Lao PDR should focus on establishing a 
valuation system that implemented the hierarchy of valuation methods laid down in the Customs 
Valuation Agreement with transaction value being the preferred method of appraisement; banned the 
use of valuation methods prohibited according to Article 7 of the Agreement, including minimum 
customs value or arbitrary or fictitious values; en sured adequate protection of confidential business 
information; met the transparency and due pro cess requirements of the Agreement, including the 
means for importers to obtain written information on the determination of value and the right of 
appeal; and allowed importers to withdraw their me rchandise against surety or deposit when the final 
determination of customs valu e was being delayed.  Lao PDR should also incorporate the 
Interpretative Notes to the Agreement in its  legislation, as Article 14 of the Customs 
Valuation Agreement stipulated that these notes we re an integral part of the Agreement.   
75. In reply, the representative of Lao PDR said that Customs Law No. 05/NA had been adopted 
on 20 May 2005, replacing the 1994 Customs Law, to bring Lao PDR's customs regime into conformity with WTO requirements.  Prime Minister's Decree No. 362/PM implementing the 
Customs Law adopted on 19 October 2007 had been  supplemented by Ministerial Instruction 
No. 0491/MOF "On the Implementation of Cust oms Law and Decree" of 12 March 2009 and 
Ministerial Instruction No. 1298/MOF "On Customs Va luation" of 16 June 2010.  He stated that 
Article 13 of the 2005 Customs Law and Article 4 of the Decree established the hierarchy of the 
valuation methodologies in line with the Customs Valuation Agreement.  The right of appeal was provided for in Article 29 of the Law and Article 9 of  the Decree.  He added that the Interpretative 
Notes would be incorporated in a Ministerial Instruct ion to be approved by the Ministry of Finance in 
2011.  He provided an action plan in document WT/ACC/LAO/12 and its Revisions, outlining the 
steps undertaken and the objectives, timelines and technical assistance and training needs foreseen to 
implement the Customs Valuation Agreement gradua lly.  Full compliance with the Agreement would 
be achieved by the end of 2012.   
76. Among the challenges Lao PDR was facing in im plementing the Agreement, he highlighted 
the lack of proper accounting and record keeping practices among importers, the low rate of voluntary compliance with existing rules, and the limited ca pacity of the customs administration to enforce 
valuation provisions.  At present, the Customs Depa rtment at the Ministry of Finance was applying  WT/ACC/SPEC/LAO/4 
 Page 27 
 
 
  minimum values to a large number of products to provi de consistency of  treatment and to deter fraud.  
He stressed that rapid elimination of the minimum values could pose a serious threat to customs 
revenue.  According to the action plan, transaction va lue (and the other valuation methods) would first 
be applied, by the end of 2010, to imports by large multinational and Lao companies with "good" 
compliance records, international organizations, and goods imported for Government projects and 
under Free Trade Agreements (Notification No. 1940/CD of 21 July 2010).  The minimum price lists 
would be developed into an automated database, to be used primarily as a source of reference in 
determining customs value, during 2011.  By the end of 2012, the valuation prov isions of the Agreement 
would be applied to all imports.  He added that Lao PDR was looking into a risk management and post 
clearance audit system to allow use of valuation me thods, other than the transaction value, on imports 
specifically identified as "high risk" to revenue, either due to the nature of the good, its origin, or the 
compliance record of the importer.   
77. A Member expressed concern about  Lao PDR's reliance on price databases, recalling that the 
World Customs Organization had issued guidelines restri cting the use of such databases.  The databases 
were not to be used to determine the customs value for imported goods, to establish substitute values, or 
as a mechanism to establish minimum values.  Lao PDR should focus on establishing a risk 
management system that would allow it to use the transa ction value to the greatest extent possible, rather 
than devoting scarce resources to a transitory syst em.  Lao PDR was also asked to confirm that any 
value database developed would to be used exclusively as a risk assessment tool.    
78. In reply, the representative of Lao PDR noted that Lao PDR was requesting a transitional period 
to implement the Customs Valuation Agreement.  Th e use of reference price lists or minimum values 
was being phased out and would be eliminated by the end of 2012 as per the action plan.  A risk 
management system might need to be introduced on ce the new system had been established to address 
fraud and underinvoicing by im porters.  He stated that the value reference database  being developed 
would be used exclusively as a risk assessment tool.   
- Rules of origin 
79. The representative of Lao PDR said that Lao PD R did not require certification of origin for 
non-preferential imports.  A certif icate of origin was required for pr eferential access to the Lao PDR 
market under free trade agreements, including the AS EAN Free Trade Area and the Asia-Pacific Trade 
Agreement.  The customs officials in the Ministry of Finance and at the borders were responsible for administering the requirement.  The Department of Import and Export at the Ministry of Industry and 
Commerce and provincial industry and commerce offices ce rtified Lao exports to preferential markets, WT/ACC/SPEC/LAO/4 
Page 28  
 
  while the Chamber of Comm erce and Industry issued the certific ates for non-prefe rential exports.  
The fees for issuing the cer tificate of origin ranged from KN 40,000 to KN 100,000. 
80. Asked to clarify whether Custom Law No. 05/NA implied that Lao PDR would not accept a 
declaration of origin unless the good was shipped di rectly to Lao PDR from the declared country of 
origin, he referred to Decree No. 228/PMO "O n the Origin of Import and Export Goods" of 
22 April 2010 and Ministerial Guidance No. 103 1/MOIC/DIMEX of 25 May 2010 (replacing Decree 
No. 97/PMO "On the Management and Use of Ce rtificate of Origin" of 8 December 1992).  
The administration and the role of bodies responsib le for administering the origin of goods were 
elaborated in Articles 16 and 19 of Decree No. 228/PM O.  In response to a specific question, he said 
that the term "simple assembly of parts" referre d to the manufacturing or processing operations that 
were deemed basic and not taken into considerati on when determining the origin of goods.  Importers 
had the right to appeal decisions on the origin of goods. 
81. Responding to queries on how Lao PDR applied, or would implement, the requirements of 
Article 2(h) and Paragraph 3(d) of Annex II of the WTO Agreement on Rules of Origin regarding 
prior and binding assessments of origin, the represen tative of Lao PDR said that Decree No. 228/PMO 
incorporated the provisions of the WTO Agreemen t on Rules of Origin, including Article 2(h) and 
Paragraph 3(d) of Annex II.   
- Other customs formalities 
82. A Member noted that Lao PDR had listed "consul ar fees overseas" in its Memorandum on the 
Foreign Trade Regime and asked whether this mean t that Lao PDR required authentication of import 
documentation by consular officials or other institutions  in the country of export and, if so, what fees 
were applied to such authentications.  The repres entative of Lao PDR replied that this measure had 
been abolished since 1 May 2002.   
- Pre-shipment inspection 
83. The representative of Lao PDR said that Lao PD R did not require mandatory pre-shipment 
inspection.  He confirmed, however, that due to valuation problems in border trade, plans had been 
put forward to create a joint-venture inspection comp any (Société Mixte d'Inspection Lao) to combat 
under-valuations and reinforce the collection of tax es.  The company was to have been established 
within three years of signature of the contract of in tention.  This had not been achieved, and all plans 
for pre-shipment inspection had s ubsequently been scrapped.    WT/ACC/SPEC/LAO/4 
 Page 29 
 
 
  84. [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 agre ements.  He further confirmed that [Lao PDR 
would ensure that such enterprises operating on  its behalf complied with the provisions of 
WTO agreements including the Agreements on Tec hnical Barriers to Trade, the Application of 
Sanitary and Phytosanitary Measures, Import Licensing Procedures, the Implementation of 
Article VII, Rules of Origin, the Implementati on of Article VI (Antidumping), Subsidies and 
Countervailing Measures, Safeguards, and Agriculture.  To this end,] the establishment of charges and 
fees would be consistent with Article VIII of th e GATT 1994 and Lao PDR would ensure that the due 
process and transparency 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 deci sions taken by the Government of Lao PDR.  
The Working Party took no te of these commitments.] 
- Anti-dumping, countervailing duties, safeguard regimes 
85. The representative of Lao PDR said that Lao PDR had no legislation authorizing the 
application of anti-dumping, countervailing, or safe guard measures at present, but would not exclude 
the possibility that such legislation could be impl emented in the future.  He confirmed that his 
Government would not apply any anti-dumping, countervailing or safeguard measures until it had 
notified and implemented appropriate  laws in conformity with the provisions of the WTO Agreements 
on the Implementation of Article VI of the GATT 1994, on Subsidies and Countervailing Measures, 
and on Safeguards.   
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
86. The representative of Lao PDR said that e xport duties were levied on some products, 
enumerated in Table 10.  He added that the e xport duties on sawn wood and logs had been abolished 
and a stumpage fee was collected on all logs, whethe r for domestic consumption or for export.  Export 
duties were collected for revenue purposes contributi ng, on average, about KN 43 billion per year to 
the exchequer (equivalent to 1 per cent of total Government revenues).  Lao PDR had no plans, at 
present, to phase out the remaining duties.  Exports we re exempt from the application of internal taxes 
such as the turnover tax.  The requirements and pr ocedures for business entities wishing to engage in 
exportation were the same as those applicable to importation.   WT/ACC/SPEC/LAO/4 
Page 30  
 
  87. Asked to commit not to introduce export duties on products not included in Table 10, the 
representative of Lao PDR reiterated the importance of export duties to government revenue and the 
need to maintain this measure.  He added th at Lao PDR would comply with GATT 1994 and WTO 
provisions with regard to export duties.   
Table 10:  Export Duties
 
No. Product Rate of export duty 
(%) Legal basis 
1. Livestock 5   
2. Coffee 5   
3. Electricity 20   
Semi-finished wooden products  
- lumber 40  4. 
- parquet 40  
Finished wood products  5. 
- plywood 3  Prime Minister Decree No. 187/PM of 
21 October 1994; 
Minister Instruction No. 230/MOF of 4 March 1995. 
 
- Export restrictions 
88. The representative of Lao PDR said that most goods exported from Lao PDR were not subject 
to any licensing arrangements or restrictions.  For goods subject to export prohibition or licensing, the 
Prime Minister's Decree No. 205/PMO "On Expor t and Import" of 11 October 2001 provided the 
legal basis for the controls, and the specific goods  subject to export measures were described in 
Notifications of the Ministry of Industry an d Commerce, the most recent being Notification 
No. 2151/MOIC.DIMEX of 30 October 2009.  The expor t restrictions were applied to protect national 
security; public order; human, animal or plant life and health; articles of artistic, historic and 
archaeological value; or to conserve exhaustib le natural resources and were, in his view, in 
conformity with Articles XX and XXI of the GATT 1994.  The goods currently subject to export 
prohibition and licensing are enumerated in Tables 11 and 12.   
89. Some Members requested further details on the banning of log exports (and other forestry 
products) and the export licensing arrangements for mi ning and forestry products, in particular the 
policy objectives being served by these licences, whet her the goal was to limit exportation for the 
conservation of these resources or to pursue some  other purpose, and what WTO justifications 
Lao PDR would forward for preserving these licences.  Lao PDR was requested to provide information on comparable restrictions applicab le domestically to conserve forests.   
90. In response, the representative of Lao PDR sa id that mines and forests were exhaustible 
natural resources requiring conservation, for exampl e through export licensing.  He considered the 
banning of exportation of logs and other forestry pr oducts from natural forest s could be justified under  WT/ACC/SPEC/LAO/4 
 Page 31 
 
 
  Article XX(g) of the GATT 1994.  He noted that expor ts of logs from farmed plantations was allowed 
and, in his opinion, the restrictions on log exports  were applied in a non-discriminatory manner.     
- Export subsidies 
91. The representative of Lao PDR said that the Ministry of Industry and Commerce was 
responsible for export promotion activities.  The Ministry, in collaboration with the Lao National 
Chamber of Commerce and Industry and business asso ciations and groups, promoted Lao products at 
home and abroad.   
92. Some Members noted that Lao PDR was reserving its rights to special and differential 
treatment as an LDC under Article 27 of the Ag reement on Subsidies and Countervailing Measures 
(ASCM), and that Lao PDR appeared to have in cluded incentives contingent on export performance 
within the meaning of Article 3.1(a) of the ASCM in its Law No. 10/NA "On the Promotion of 
Domestic Investment" (Articles 9 and 11); Law No. 11/NA "On the Promotion of Foreign 
Investment" (Articles 16 and 18); and implemen ting Decree Nos. 300/PM and 301/PM (Article 15 
and Annex 2).  As Article 25 of the ASCM obliged  WTO Members to notify all subsidies, including 
prohibited subsidies contingent upon export or the use of domestic over imported goods, Lao PDR 
was requested to submit such a document to the Working Party for review.   
93. In reply, the representative of Lao PDR submitte d a draft notification for the period 2008 to 
2010 in document WT/ACC/LAO/19.  Information was provided on subsidies, prohibited or 
otherwise.  The notification included particulars of the incentives contingent upon export performance 
requirements in the domestic and foreign investment  legislation (Law Nos. 10/NA and 11/NA, Decree 
Nos. 300/PM and 301/PM); and in the border tr ade zones and special economic zone (Decree 
Nos. 25/PM, 162/PM and 177/PM - see section on "Free z ones").  As an LDC, he reiterated that Lao 
PDR reserved its right to avail of the flexibiliti es in the ASCM on the use of export performance 
requirements.  The existing export performance (and  local content) requirements in the investment 
regime, however, had been eliminated and re placed by incentives provided pursuant to Law 
No. 02/NA "On Investment Promotion" of 8 July 2009.     
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 94. The representative of Lao PDR said that Lao PDR had formulated an Industry-Handicraft 
Development Plan for the period 1996-2005 cove ring the manufacturing industry, cottage and 
handicraft industries, power generation, mini ng, agro-processing industries, textiles and the WT/ACC/SPEC/LAO/4 
Page 32  
 
  production of construction materials.   Encouragement of key industri es and exports were priorities in 
the Sixth Five-Year Development Plan for the period 2006-2010.  The share of the manufacturing 
sector as a percentage of the GDP had increased from 14.4 per cent in 1990 to 29.2 per cent in 2005.  
The manufacturing industry, in particular food pr ocessing, was the primary source of employment, 
and about 92 per cent of the industrial workforce was employed in factories with less than ten 
employees.  The principal challenges for Lao PDR' s continued industrial development were import 
competition in the case of handicrafts, inadequate infr astructure to attract new industries, a shortage of 
technical and entrepreneurial skills, and the lack of  electricity outside the main population centres.  
Lao PDR was looking for domestic and foreign capita l to improve the production technology and 
working methods, and to improve the infrastructure in rural areas with the available labour force.  
The Governors of Vientiane Capital, Champa sack, Savannakhet, Khammouane, Bolikhamxay, 
Oudomxay, Luangnamtha, and Vientiane provinces had been discussing the establishment of an 
"Industrial Zone" but so far no progress had been achieved and these plans had been shelved.   
95. In response to specific questions concerning the mining sector and power generation, the 
representative of Lao PDR said that Lao PDR sought to  develop a favourable legal system for mineral 
prospecting and exploration and to promote foreign investment in mining.  The Mining Law had been 
revised in 2008 to create a more enabling environmen t for investment in this area.  Key amendments 
included streamlining the licensing procedures and delineating the responsibilities of the central and 
local authorities regulating the mining sector.  Lao PDR did not have a specific national energy plan, 
but had devised a strategy to develop the electricity  sector, including a target to extend the electricity 
grid to 90 per cent of the households by 2020.  For the time being, much of the electricity was being exported.  Electricity production had doubled in 1998 when a new hydro power station had come on 
stream.  In 2007, Lao PDR had gene rated electricity totalling 3,374 m illion kWh, of which net exports 
had amounted to 2,230 million kWh.  Lao PDR had a considerable untapped hydropower potential.  
The Law on Electricity stated that the sector s ought to increase foreign investment in production, 
distribution, exportation, importation a nd the development of this sector.   
96. Some Members noted that certain provisions of Lao PDR's laws appeared to provide 
incentives contingent upon the use of domestic over imported goods within the meaning of 
Article 3.1(b) of the ASCM, namely Law No. 10/NA "On the Promotion of Domestic Investment" 
(Articles 9 and 11); Law No. 11/NA "On the Promoti on of Foreign Investment" (Article 18); Decree 
No. 300/PM "Regarding the Implementation of the La w on the Promotion of Domestic Investment"; 
Decree No. 301/PM "Regarding the Implementati on of the Law on the Promotion of Foreign 
Investment" (Article 34 and Anne x 2); and the legislation on the special economic and border trade 
zones (Decree Nos. 25/PM, 162/PM and 177/PM - see section on "Free zones").  Lao PDR was  WT/ACC/SPEC/LAO/4 
 Page 33 
 
 
  invited to use the format of document G/SCM/6/Re v.1 to provide a subsidy notification.  Lao PDR 
was requested to (i) identify clearly the subsidi es contingent on the use of domestic over imported 
goods in the manufacturing process for which it would seek a transition period; (ii) provide an action 
plan to the Working Party with a date certain for th e elimination of such subsidies; and (iii) commit to 
comply with the obligation under Article 25 of the ASCM, as a WTO Member, to notify all subsidies, 
including prohibited subsidies contingent upon e xport or the use of domestic over imported goods.  
Some Members stressed that LDCs  were exempted from the prohibition of export subsidies, but not 
from the prohibition of local content subsides, an d Lao PDR should therefore, in their opinion, 
commit to eliminate all local content requirements by the date of accession.   
97. In response, the representative of Lao PDR presented a draft subsidy notification for the 
period 2008 to 2010 in document WT/ACC/LAO/19.  The notification identified the tax and duty 
exemptions provided by Lao PDR in its investment , special and border trade zones legislation.  
In terms of form of subsidy, the notification distinguished between measures falling within and 
outside the scope of Article 3.1 (a) and (b) of the ASCM.  He added that Lao PDR was taking steps to 
eliminate provisions requiring the use of domestic over imported goods.  His Government had set up a 
Committee under the Prime Minister's Office to pr opose alternative measures to promote Lao PDR's 
industrial policy.  In light of these efforts, the new Law No. 02/NA "On Investment Promotion" of 8  July 2009 had eliminated incentives based on local  content requirements in Lao's investment 
legislation.  Lao PDR was also reviewing and amending the local content requirements in the 
legislation governing border trade zones and the special economic zone (Decree Nos. 25/PM, 162/PM 
and 177/PM).   
- Technical barriers to trade, standards and certification 
98. The representative of Lao PDR said that the Decree of the Prime Minister No. 85/PM 
"On Management of Standards and Quality of Pr oducts and Goods" of 2 November 1995 constituted 
the basic legal framework for Lao PDR's present system of standards, technical regulations and 
conformity assessment.  Amongst the relevant regulations in this ar ea he pointed to the Regulation 
No. 1036/STEA-PMO "On Quality Inspection of Imported Goods" of 11 June 2002; Regulation 
No. 08/MOH of 4 January 2005 (e.g food additives such as acetic acid and caffeine being subject to 
surveillance); Regulation No. 586/MOH "On the Cont rol on Production, Export-Imported Safe Food" 
of 12 May 2006; Regulation No. 518/MOH "On the Basic Principles in the Application of Sanitary and Technical Measures for the Food Safety  Management" of 18 March 2009; Regulation 
No. 1226/PMO-NAST "On Quality Inspection of Goods" of 17 July 2009; and Decision No. 235/PMO-NAST "On the Organization and Activ ities of the National Standards Council" of WT/ACC/SPEC/LAO/4 
Page 34  
 
  3 February 2010.  He added that  Decree No. 85/PM was being replaced by the new Standardization 
Law No. 13/NA of 26 December 2007.  The new Law ha d entered into force in April 2008, and would 
be supplemented by implementing decrees and regul ations to be adopted in 2009-2010.   
99. He provided a checklist of illustrative TBT issues in document WT/ACC/LAO/6 and its 
Revision 1; and an action plan for the implementation of the Agreement on Technical Barriers to Trade in document WT/ACC/LAO/14 and its Revisions (Table 13).  Accordin g to the timelines set 
out in the action plan, Lao PDR intended to comple te its assessment of the institutional, legal and 
regulatory framework by 2010.  Implementing regul ations or decrees of the Standardization Law 
No. 13/NA were being drafted for adoption in 2009-2 010.  The action plan also foresaw the adoption 
of the draft Decree "On the SPS and TBT Notificati on Centre and Enquiry Poin ts" by 2010.  Lao PDR 
would need to equip and train officials for the notif ication and enquiry points to be operational by the 
date of accession.  With technical assistance be ing provided and additional assistance being sought, he 
envisaged full implementation of the TBT Agreement by 2012.   
Table 13:  Action Plan for the Implementation of the TBT Agreement
 
Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Standardization Law No. 13/NA 
dated 26 December 2007 Adopted in 2007 Technical Assistance (TA) 
received from EU and 
UNIDO (ended 2008). 
Decree on the Implementation of the Standardization Law To be drafted by 
2010 TA to be received from 
Trade Development Facility 
(TDF). 1. Technical 
regulations 
Regulation on the Quality 
Inspection of Goods Adopted in 2009  
Regulation on the Use of 
Standard Mark for Lao Products Adopted in 2006 TA received from EU and 
UNIDO 
Standardization Law No. 13/NA 
dated 26 December 2007 Adopted in 2007 TA received from EU and 
UNIDO (ended 2008). 
Decree and Regulation on the Implementation of the 
Standardization Law To be drafted by 
2010 TA to be received from 
TDF. 2. Standards 
 
Decision on the Organization and 
Activities of the National Standard Council Adopted in 2010  
Standardization Law No. 13/NA 
dated 26 December 2007 Adopted in 2007 TA received from EU and 
UNIDO (ended 2008). 
Decree and Regulation on the 
Implementation of the Standardization Law To be drafted by 
2010 TA to be received from 
TDF. 3. Conformity 
Assessment 
Establishment of testing facilities 
for construction materials, textiles 
and chemicals Deferred TA to be requested.  WT/ACC/SPEC/LAO/4 
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  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Draft Decree on the SPS and TBT Notification Centre and Enquiry 
Points (formerly referred to as 
Regulation on Information 
Procedures for SPS and 
TBT Agreements) To be adopted by 
2010 TA received from EU on 
drafting. 
Establishment of TBT Enquiry Point at the Department of 
Intellectual Property, 
Standardization and Metrology, National Authority on Science 
and Technology Operational upon 
accession TA to be requested for 
training, equipment, 
database. 4. Information 
Procedures 
Establishment of the SPS and 
TBT Notificatio n Commerce and 
Industry at the Foreign Trade 
Policy Department, Ministry of 
Industry and Commerce  Operational upon 
accession To be requested from 
USAID and ADB. 
5.    TBT related 
activities  Reassessment of the institutional, legal and regulatory framework 
for TBT To be completed by 
2010 TA received from TDF. 
 
100. The representative of Lao PDR said that Lao PDR had become a signatory to the ASEAN 
Consultative Committee on Standards and Quality (ACCS Q) in 1998, and had joined the International 
Organization for Standardization (ISO) in January 2007.  Lao PDR had become a signatory to the 
IEC-APRC Affiliate Country Programme in 2002.  The development of standards and technical 
regulations followed the ACCSQ principles as stipulat ed in his Government's National Master Plan 
No. 1352/PM.DS of 11 August 2000 for the "Developm ent of Standards and Conformity Assessment 
in Lao PDR".  Standards and technical regulations were developed in consu ltation with the principal 
governmental stakeholders and the private sector, a nd - for standards - work was also being pursued 
through the ACCSQ based on ISO/IEC guidelines.  As  a signatory, his Government abided by the 
decision of the ACCSQ that IEC standards be ad opted as national standards and notified to the 
IEC-APRC-ACP.   
101. The National Authority for Science and T echnology (NAST) - formerly the National 
Organization for Science and Technology - in th e Office of the Prime Minister was the central 
management agency for work on TBT-related matters .  For matters dealing with food and drugs, the 
Food and Drug Administration Committee under the Mini stry of Public Health was the responsible 
agency.  Under the auspices of NA ST, the National Standards Council - comprising of representatives 
from the Government and private sector - examined proposed new standards and technical regulations 
elaborated in specific technical committees (Dec ision No. 235/PMO-NAST "On the Organization and 
Activities of the National Standards Council" of 3 February 2010).  Once finalized, the National 
Standards Council would forward the proposal to  the NAST for approval.  Approved technical WT/ACC/SPEC/LAO/4 
Page 36  
 
  regulations, standards, or confor mity assessment procedures were published in the official gazette  
(Government Journal) and other media.   
102. He said that Lao PDR would further meet the tr ansparency obligations of the TBT Agreement 
in the development of standards and technical regul ations with the adoption of the Decree "On the 
SPS and TBT Notification Centre and Enquiry Points " in 2010.  The Decree would allow for public 
review and a reasonable timeframe for comments in the preparation of draft TBT (and SPS) laws and 
regulations.  The Enquiry Points and the Notificati on Centre would be fully operational from the date 
of accession.  The single TBT Enquiry Point would be located in the Department of Intellectual 
Property, Standardization and Metrology at NAST; and the Notification Centre, responsible for the 
submission of WTO notifications, would be established in the Foreign Trade Policy Department of the 
Ministry of Industry and Commerce.      
103. In response to specific questions, he said that  Lao PDR recognized the results of conformity 
assessment conducted by the relevant bodies in expor ting countries if similar to Lao technical 
regulations and standards, includi ng for construction materials, te xtiles and chemicals (Regulation 
No. 1226/PMO-NAST "On Quality Inspection of Goods").  The quality attestation should be 
accompanied by a certificate from a testing laborator y accredited by the national standardization body 
in the exporting country.  The procedure for imported steel bars, cement, and petrol was stipulated in 
Regulation No. 1036/STEA-PMO, and for food an d drugs in Regulation No. 586/MOH.  Lao PDR 
recognized accreditation by international systems of  conformity assessment such as the International 
Laboratory Accreditation Cooperation (ILAC) and th e International Accreditation Forum (IAF).  
Asked how Lao PDR established and a pplied the principle of equivalence, he said that goods meeting 
international standards, such as those established by  the ISO and the IEC, were cleared for import.  
Technical assistance was requested to build capacity and fully establish the basis to assess 
equivalence.  The principle was still in the process of  being incorporated in national regulations - for 
example in Regulation No. 518/MOH of 18 March 20 09 with respect to food products.     
104. Some Members requested more information about the Standardization Law No. 13/NA, 
including its structure and scope, and the distinc tion between voluntary and mandatory requirements.  
A Member asked how Lao PDR would ensure that dom estic regulations adopted before the passage of 
the Standardization Law would conform with the obligations of the TBT Agreement.   
105. In reply, the representative of Lao PDR said that the Standardization Law built upon key 
provisions of the TBT Agreement incorporated in Decree No. 85/PM, as well as other requirements of 
the Agreement.  The Law set out the framework  for standards (Articles 19 and 21), technical 
regulations (Articles 28 and 29) , and conformity assessment procedures (Part V), and would be  WT/ACC/SPEC/LAO/4 
 Page 37 
 
 
  accompanied by more detailed legislation as per th e action plan.  The Standardization Law covered 
the key principles, including non-discrimination (Articles 6 and 44), avoiding unnecessary barriers to 
trade (Article 6), transparency (Articles 21-22,  27-30 and 47), harmonization with international 
standards (Articles 7, 19 and 44); and the concepts of equivalence and mutual recognition.  According 
to Article 20 of the Law, all standards were vol untary unless specifically indicated in the relevant 
regulations.  An implementing Decree for the Law on  Standardization was in preparation.  With the 
adoption of the Decree, all other regulations on sta ndards and related matters in conflict with the Law 
or its implementing Decree would be replaced or annulled.   
- Sanitary and phytosanitary measures 
106. The representative of Lao PDR said that Lao PDR was a member of the WHO Codex 
Alimentarius Commission, the World Organization fo r Animal Health (OIE), and the International 
Plant Protection Convention.  The SPS regulations  and standards of Lao PDR were based on the 
relevant international standards,  guidelines and recommendations.   
107. Lao PDR was also participating in a regional harmonization framework of ASEAN regarding 
SPS measures.  As ASEAN Members were adopting the standards and recommendations of the IPPC, 
OIE and Codex Alimentarius on an individual basis, a framework for the harmonization of 
phytosanitary procedures had been developed, app licable only to ASEAN Members.  The scheme was 
initially covering ten agricultural products.  Work on a phytosanitary certifica tion management system 
had been completed.  The Member countries had so  far focused on exchange of legal normative 
documents, sharing the results of scientific studies, an d developing a pest list for some major crops for 
the performance of risk assessment.  In his view , the harmonization framework was consistent with 
the SPS Agreement.   
108. The main laws and regulations in the SPS area were the Food Law No. 04/NA of 
15 May 2004; the Livestock Production and Veterinary Law No. 03/NA of 25 July 2008; the Plant 
Protection and Quarantine Law No. 06/NA of 9 December 2008; the Law No. 01/98NA 
"On Agriculture" of 10 October 1998; Ministerial Regulations Nos. 0719/MAF "On the Management 
and Use of Planting Material and Seeds in La o PDR" of 3 December 1997 and 0639/MAF "On the 
Quarantine of Plants in the Lao PDR" of 2 July  1993; Decree No. 66/PM "On Plant Quarantine" of 
21 March 1993; Ministerial Regulation No. 0886/MA F "On Management and Use of Pesticide in 
Lao PDR" of 10 March 2000; Instruction No . 0005/MAF for the Regulation on Livestock 
Management in Lao PDR of 2 January 1997; Regul ation No. 0004/MAF "On Livestock Management 
in Lao PDR" of 2 January 1997; Decree No. 85/PM O "On Livestock Management in Lao PDR" of 
31 May 1993; Technical Norms No. 0313/MAF "On Livestock Management in the Lao PDR" of WT/ACC/SPEC/LAO/4 
Page 38  
 
  21 January 2000; Regulation No. 518/MOH "On the Basic Principles in the Application of Sanitary 
and Technical Measures for the Food Safety Ma nagement" of 18 March 2009; and, Regulation 
No. 586/MOH "On the Control on Production, Exporte d-Imported Safe Food" of 12 May 2006.  
A National Policy on Food Safety (No. 028/PM) ha d been adopted on 3 February 2009.     
109. At the central level, the key governmental agencies involved in the elaboration of SPS 
measures were the Ministry of Agriculture and Fore stry - Department of Agriculture (plant health) 
and the Department of Livestock and Fisheries (ani mal health); and for food safety the Ministry of 
Public Health - the Departments of Food and Drug and of Hygiene and Disease Prevention.  The two 
Departments of the Ministry of Public Health wo rked on food safety issues under the supervision of 
the Food and Drug Advisory Committee.  The Committee was made up of representatives of the Ministries of Industry and Commerce, Agriculture a nd Forestry, and Health, and was chaired by an 
official from the Department of Intellectual Property, Standardization and Metrology within the 
NAST.  The implementation of food safety and anim al and plant health policies was carried out by 
provincial and local authorities in the 16 provinces and in Vientiane Capital, e.g. the provincial Health 
offices and the provincial Agriculture and Forestry Offices.   
110. He added that in order to comply with the Agreement on the Application of Sanitary and 
Phytosanitary Measures, Lao PDR would need to im prove its risk assessment procedures, upgrade the 
existing legislation, and improve and develop its SPS-related processes and infrastructure.  According 
to Lao PDR's checklist of illustrative SPS issues ( document WT/ACC/LAO/6 and its Revision 1), the 
principles of the Agreement regarding science- based regulations, measures based on necessity, 
equivalence, and non-discrimination had yet to be fully incorporated in domestic regulations, in 
particular, for measures affecting animal or plan t health.  He provided an action plan for the 
implementation of the SPS Agreement in documen t WT/ACC/LAO/13 and its Revisions (Table 14).  
As per the action plan, Lao PDR also intended to am end or promulgate new decrees or regulations on 
food control, food additives, inspection of meat and live animals (import and transit), plant inspection 
and certification, plant quarantine, pesticide mana gement, and complete work on the designation of 
pest and disease free areas.  The transparency prov isions of the Agreement would also be addressed, 
and steps were being taken to operationalize the SP S Enquiry Point and Notification Centre by the 
date of accession.  With the provision of technical  assistance, he expected Lao PDR to be in full 
compliance with the SPS Agreement by 2012.    WT/ACC/SPEC/LAO/4 
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  Table 14:  Action Plan for the Implementation of the SPS Agreement  
Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Regulation No. 585/MOH "On 
Bottled Drinking Water" of 
12 May 2006 Adopted in 2006 Technical Assistance (TA) 
including recommendations 
received from FAO and WHO. 
Regulation No. 586/MOH "On Production, Exported-Imported 
Safe Food" of 12 May 2006 Adopted in 2006 TA including recommendations 
received from FAO and WHO. 
National Policy No. 028/PM "On Food Safety" of 3 February 2009 Adopted in 2009 TA including recommendations 
received from FAO and WHO.  
TA requested from TDF for 
publication, dissemination and training for all stakeholders. 
Regulation on Basic Principles in 
Application of Sanitary and 
Technical Measures in Food 
Safety Management in 
accordance with the SPS Agreement (formerly 
referred to as Decree on 
Implementation of Food Law) Adopted in 2009 Recommendations received 
from FAO and WHO. 
 
TA to be requested from TDF 
for publication, dissemination and training for all 
stakeholders. 
Regulation on Labelling of 
Pre-Package Food  Adopted in 2009 TA received from WHO on 
drafting. 
Regulation on Food Inspection 
(formerly referred to as 
Regulation on Food Control System) Regulation being 
drafted by MOH 
To be adopted by 2011 TA received from WHO and 
FAO in drafting regulation and 
to be requested from TDF and WHO for finalizing the 
regulation and guidelines as 
well as training for food inspectors. 
Regulation on Food Additives To be adopted in 
2011. 
The assessment and gathering 
data on additive 
use in Lao PDR 
is ongoing. TA to be requested from TDF 
FAO and WHO for drafting and 
finalizing the regulation. 
Adopting Codex Alimentarius Standards for Lao PDR Priority standards 
have been selected. 
Adoption is 
ongoing. TA to be requested  from TDF 
for translation, publication, training and implementation. 
Establishment of an independent food laboratory Deferred  1.  Food Safety 
Improving food processing by 
introducing food hygiene 
practice, GMP GMP Guidelines 
developed and 
training provided in 2009-2010  TA provided by EC, FAO and 
WHO in November 2009 for 
training and developing guidelines. TA requested from 
Japan for GMP through APO 
project. WT/ACC/SPEC/LAO/4 
Page 40  
 
  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Livestock Production and Veterinary Law No. 03/NA, 
dated 25 July 2008 (formerly 
referred to as a Veterinary Law) Adopted in 2008 Recommendations received 
from FAO and EU. 
 
TA requested from FAO and 
TDF for publication, 
dissemination and training for all stakeholders. 
Law on Fisheries Adopted in 2009 TA to be requested for 
publication, dissemination and 
training for all stakeholders 
Ministerial Decision on Meat Inspection (formerly referred to 
as Decree on Meat Inspection) To be adopted in 
2010 Recommendations received 
from EU. 
Amendment of Decree on Inspection of Live Animals on Import and Transit To be adopted in 
2010 Recommendations received 
from EU. 
Amendment of the Decree on 
Animal Epidemic Diseases To be adopted in 
2010 Recommendations received 
from EU. 
Decree on Livestock Production 
Management Decree is 
unnecessary as required 
provisions 
already included in Livestock 
Production and 
Veterinary Law   
Decree on Animal Qu arantine Decree is 
unnecessary as 
required provisions 
already included 
in Livestock Production and 
Veterinary Law   
Establishment of a diagnostic 
laboratory Design finished 
in 2010 Implementation funding  
requested from the World Bank. 
Regulation on Criteria for Livestock Production and 
Veterinary Business  To be adopted in 
2010  2.  Animal Health 
Identification of animal disease 
free areas To begin in 
September 2010 TA to be requested. 
Law on Plant Protection and 
Quarantine (formerly referred to 
as Law on Plant Protection and 
Plant Quarantine) Adopted in 2008 Recommendations received 
from FAO legal experts, 
practices of neighbouring 
countries. 
 
TA received from TDF for publication, dissemination and 
training for all stakeholders. 
Regulation on Plant Quarantine 
to be updated To be drafted by 
2011 TA requested from TDF for 
drafting the update. 
Regulation on Plant Inspection and Certification To be drafted by 
2011 TA requested from TDF for 
drafting the regulation. 3.  Plant Health 
Establishment of a laboratory on 
plant diseases and pests Deferred   WT/ACC/SPEC/LAO/4 
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  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Identification of pest and disease free areas To be completed 
in 2010 TA to be requested. 
 
Regulation on Pesticide 
Management Adopted in 2010 TA requested from TDF. 
Decree on SPS and TBT 
Notification Centre and Enquiry 
points  To be adopted in 
2010 TA received from EU on 
drafting and to be requested 
from USAID and ADB for 
implementation. 
Establishment of SPS Enquiry Point at the Department of 
Planning, Ministry of 
Agriculture and Forestry Operational upon 
accession TA to be requested from 
USAID and ADB for 
implementation. 4.  Information 
     Procedures 
Establishment of the SPS and 
TBT Notification Centre at the 
Foreign Trade Policy 
Department, Ministry of Industry and Commerce  Operational upon 
accession TA to be requested from 
USAID and ADB for 
implementation. 
 
111. Having examined the information and action plan submitted by Lao PDR, some Members 
requested more detailed information concerning  how Lao PDR intended to develop its legal 
framework to incorporate the basic principles of the SPS Agre ement and apply measures in 
conformity with the Agreement with respect to f ood safety, and animal and plant health.  Lao PDR 
was invited to be more precise regarding the timelines envisaged to draft, finalize and implement 
outstanding legislation, and to also elaborate furt her on its technical assistance needs to finalize its 
legislation,  and enhance the instituti onal capacity and laboratory build-up.   
112. In reply, the representative of Lao PDR noted that, in the area of food safety, the 2004 Food 
Law together with the National Policy on Food Safety (No. 028/PM) and Regulation No. 518/MOH 
provided the basis for the adoption of new food standards based on the standards of the Codex 
Alimentarius - a programme that would continue on an ongoing basis.  The Policy reiterated that the 
standards of Lao PDR should adhere to standards,  guidelines and recommendations developed by the 
relevant international organizati ons, including Codex Alimentarius, IPPC and the OIE, and comply 
with the SPS and TBT Agreements.  In additio n, key components of the Policy included the 
implementation of food safety through laws, regulati ons and standards; use of risk analysis (with 
stakeholder participation limited to risk comm unication and risk assessment - where data was 
accessible - for an objective science-b ased evaluation of risk); adoption of an Integrated Food Chain 
Approach; the promotion of greater internationa l co-operation in the area of food safety, and 
strengthening human and institutional capacities.  Al l the basic principles of the SPS Agreement such 
as necessity, non-discrimination, transparency, science-based regulations, risk assessment, 
harmonization, and equivalence had been in cluded in Food Law No. 04/NA; National Policy 
No. 028/PM "On Food Safety"; and, Regulation No. 518/MOH.  Specific regulations had been WT/ACC/SPEC/LAO/4 
Page 42  
 
  adopted for the production, import and export of saf e food, labelling of pre-packaged food, and for 
drinking water in sealed containers.  Regulati ons were being develope d on Good Manufacturing 
Practices (GMP) and Hazard Analysis and Critical Control Points (HACCP), food inspection, and 
food additive substances.  In response to specifi c questions, he added that the "reasonable risk 
assessment framework" in Regulation No. 518/MOH referred to the conventional risk assessment 
steps of hazard identification and characterizati on, exposure assessment and risk characterization in 
food safety management.  In the absence of national standards, Codex Alimen tarius standards were 
applicable with respect to food residues and cont aminants, and substances  such as sweeteners, 
colorants, preservatives etc.  On the recognition of foreign standards, he said that Lao PDR accepted 
the standards and certification of countries that, like Lao, had adopted Codex Alimentarius standards.  
For standards that went beyond Codex guidelin es, he added that Lao PDR applied Codex 
Alimentarius as the minimum required standards.        
113. In the area of animal health, he expected th e 2008 Livestock Production and Veterinary Law 
and the 2009 Fisheries Law to be followed up by  the amendment or adoption of regulations and 
decrees, the identification of animal disease free  areas, and the establishment of a diagnostic 
laboratory.  As for plant health, a new Law on Plant Protection and Plant Quarantine had been 
adopted in December 2008.  A technical assistance pr oject to strengthen the regulatory framework on 
plant health had begun in mid-2008 under the auspi ces of the Enhanced Integrated Framework.  
Legislation in the pipeline included updating or drafting regulations on plant quarantine, pesticide 
management, plant inspection and certification, and the identification of pest and disease free areas.  
He provided a list of quarantine pests (2005)  in document WT/ACC/LAO/11, Annex 2.   
114. He added Lao PDR was in the process of elaborating detailed technical assistance 
requirements for bringing its entire regime in to compliance with the SPS Agreement under the 
Enhanced Integrated Framework.  The Ministry of Agriculture and Forestry in collaboration with the 
Ministry of Public Health and the National Aut hority for Science and Technology was finalizing a 
project, i.e. the Trade Development Facility, unde r a multi-donor trust fund.  The key components of 
the project were (i) strengthening the SPS in stitutional, legal and regulatory framework; 
(ii) determining risk-based policies and control meas ures for SPS; and (iii) strengthening the role of 
the private sector in the SPS regime.       
115. Asked how the transparency provisions of th e SPS Agreement would be applied in Lao PDR, 
he said that Lao PDR was planning to establish its SPS Enquiry Point at the Department of Planning 
in the Ministry of Agriculture, whereas the Foreig n Trade Policy Department in the Ministry of 
Industry and Commerce would be responsible for the submission of SPS (and TBT) notifications to  WT/ACC/SPEC/LAO/4 
 Page 43 
 
 
  the WTO.  The regulatory and institutional fra mework was in preparation, and Lao PDR was 
receiving technical assistance to train staff.  Contacts in other relevant ministries, such as the Ministry 
of Public Health, would be designated form ally through the Decree "On the SPS and TBT 
Notification Centre and Enquiry Points".  He exp ected the Decree to be adopted by 2010.  The SPS 
Enquiry Point and the Notification Centre would be operational by the date of accession to the WTO.   
116. In response to a specific question, he said that Regulation No. 0886/MAF - which concerned 
the use of pesticides in agriculture - required an  import permit from the Department of Agriculture 
(or the Agriculture and Forestry Office in the prov inces and Vientiane Capital) for each shipment, and 
prior registration of the pesticide with the Departme nt or Offices.  The registration was valid for two 
years, but the Department or Offices considered th e import permit the only possible way to administer 
the Regulation.  He noted that Lao PDR conti nued to experience incidences of imported food and 
beverages having expired shelf life.  Regulation No. 519/MOH "On Labelling of Pre-Packaged Food" 
defined the expiry or use-by date as the period after which the product, under any stated storage conditions, would not have the attributes expect ed by the consumer.  A quality certificate was 
required for all imported food, and for each shipment.  The certificate was a precondition for 
obtaining an import licence prior to the actual impor tation of the product.  As Lao PDR did not have 
resources to undertake extensive analysis and testing,  certificates issued in the exporting country were 
recognized and accepted.  The Food and Drug De partment was the only institution in Lao PDR 
capable of examining and certifying food products.  Registration forms for quality control on 
domestically-circulated foodstuff were reproduced in document WT/ACC/LAO/5, Annex VII.   
- Trade-related investment measures 
117. Some Members noted that Law No. 10/NA "On th e Promotion of Domestic Investment", Law 
No. 11/NA "On the Promotion of Foreign Investme nt" and its implementing regulations (Decree 
Nos. 300/PM and 301/PM) encouraged export-orient ed production and import substitution and would, 
with these objectives in mind, appear to include measures falling within the scope of the Agreement 
on Trade-Related Investment Measures.  In partic ular, Decree Nos. 300/PM and 301/PM included 
provisions for import duty and tax concessions and eligibility criteria for investment incentives 
(Annex 2, footnote) that could be construed as lo cal content or export performance requirements.  
Lao PDR was reminded that in order to u tilize the transitional arrangements under the 
TRIMs Agreement, Lao PDR would be required to identify the precise measures for which it would 
be seeking transitions.  Lao PDR should also indicat e how long within the allowable period it believed 
it would be necessary to maintain the measures, and commit to the elimination of all measures inconsistent with the TRIMs Agreement within a date certain, e.g. seven years from the date of WT/ACC/SPEC/LAO/4 
Page 44  
 
  accession to the WTO.  In case Lao PDR would like to  avail itself of the transitional period allowed 
for in the Hong Kong, China Ministerial Declaratio n, Lao PDR was requested to confirm that the 
phase-out period for existing measures would last fo r seven years from the date of accession and have 
effect for those existing measures notified to the Council for Trade in Goods.   
118. In reply, the representative of Lao PDR took note of the request for TRIMs measures to be 
notified.  Bearing in mind the flexibilities granted to LDCs through the Sixth WTO Ministerial 
Conference Declaration (paragraphs 35-35 and Annex F), he said that Lao PDR would like to avail 
itself of the available transitions and phase out its incompatible TRIMs measures as foreseen for LDC 
Members.  A Committee had been set up under the Pr ime Minister's Office to propose alternative 
measures to promote Lao PDR's i ndustrial policy.  He added th at Lao PDR had revamped its 
investment legislation with Law No. 02/NA "On I nvestment Promotion" replacing Law Nos. 10/NA 
and 11/NA and annulling Decree Nos. 300/PM and 301/PM.   
- State-trading entities 
119. Noting a preliminary statement by the representative of Lao PDR that Lao PDR did not have 
State trading enterprises in the sense of Article XVII of the GATT 1994 and the working definition of 
the Understanding on that Article, but  that his Government would conti nue to consider this issue and 
report to the Working Party if necessary, some Members requested Lao PDR to elaborate on the 
functioning of State-owned enterprises engaging in imports or exports of goods and State "controls" 
on certain imports and exports, re minding Lao PDR that the obligations of the GATT Article XVII 
and the Understanding on that Article applied equa lly to all enterprises owned or controlled by the 
State,  as well as to enterprises to which the State gr anted special or exclusive privileges.  In reply, the 
representative of Lao PDR said that 16 State-ow ned enterprises were currently involved in 
importation or exportation of  goods (Table 5).   
120. A Member requested Lao PDR to elaborate fu rther on whether the 16 enterprises (Table 5) 
operated solely in accordance with commercial cons iderations in their purchases or sales involving 
either imports or exports, and to clarify if they acted in a manner consistent with the 
non-discriminatory principles enshrined in the GATT 1994.   In reply, he said that none of the listed 
enterprises had monopoly or special rights or privileges used to influence the level of imports.  These 
enterprises had been established and operated on th e same basis as private enterprises engaged in 
foreign trade, and his Government did not interfere in their decision-making.  No enterprise - private 
or State-owned - imported or exported goods on behalf of th e Government or engaged in 
stock-building from international trade.  State "contro l" in the context of international trade in goods  WT/ACC/SPEC/LAO/4 
 Page 45 
 
 
  referred to licensing and regulation, and did not im ply the designation of specific firms to conduct 
trade, the setting of prices or profits, or State decision-making regarding purchases or sales.   
- Free zones, special economic areas 
121. The representative of Lao PDR said that La o PDR had established two border trade zones 
(Boten and Dansavanh Village) and one special ec onomic zone (Savan-Seno) pursuant to Decree 
No. 25/PM "On Dansavanh Village Border Trad e Zone" of 25 March 2002; Decree No. 162/PM 
"On Border Trade Zone at Boten, Louangnamt ha Province" of 8 October 2002; and Decree 
No. 148/PM "On Savan-Seno Special Economic Zone " of 29 September 2003.  Decree Nos. 25/PM 
and 162/PM set out the requirements for investing in the trade zones (Articles 5-7) as well as the 
incentives accorded to the projects (Articles 14- 24).  Natural or legal persons, regardless of 
nationality, could invest in these z ones and engage in manufacturing, services or trading activities.   
122. In addition to the incentives available under the investment regime and in accordance with 
Decree Nos. 25/PM and 162/PM, investors in the bo rder trade zones could avail of import and export 
duty exemptions on goods exported from the zones ( as well as duty-free imports for exhibitions and 
trade fairs); reductions or exemptions on profit ta x with a tax holiday of four years followed by 
payment of half the applicable rate over a grace pe riod of four years (losses could be carried forward 
and the tax was rebated if profits were reinvested in the zones); income (dividend) tax exemption 
during the profit tax exemption period; and exemp tion from turnover tax (except for goods that were 
imported for a trade fair or exhibition and subsequent ly sold in the border trade zone).   Investors 
could also avail of an exemption from the land lease fees for a period of five to seven years.     
123. As for the special economic zone, Article 6.4 of Decree No. 148/PM indicated that 
preferential duty and tax treatment would be determined under separate legislation (Decree 
No. 177/PM "On Management Regulation and Incen tive Policies regarding the Savan-Seno Economic 
Zone" of 13 November 2003).  Pursuant to Decree  No. 177/PM, investments in the special economic 
zone were exempt from turnover, excise and land tax.  Construction material, machinery, raw 
materials, semi-finished products, vehicles and spar e parts used as inputs for production were exempt 
from customs duty.  In addition, reductions or ex emptions from profit tax were granted for periods 
ranging between two to 10 years as outlined in document WT/ACC/LAO/19 (pages 10-12).  
124. In response to specific questions, the represen tative of Lao PDR confirmed that goods 
produced in the border trade zones and in the speci al economic zone would be  subject to import duty 
when entering the normal customs territory of Lao PDR.   WT/ACC/SPEC/LAO/4 
Page 46  
 
  125. He noted that certain incentives in the special economic zone an d the border trade zones were 
contingent upon export performance and the use of lo cal content.  Profit tax exemptions or reductions 
in the special trade zone were contingent upon e xport performance (enterpris es exporting 70 per cent 
or more of their output could avail of a ten y ear tax holiday, while enterprises exporting between 
30 and 69 per cent were eligible for seven years,  and those exporting less than 30 per cent were 
eligible for a five year exemption period).  In addition, enterprises sourcing 50 per cent or more of 
their raw materials domestically could avail of a re duced profit tax rate.  In the border trade zones, a 
discount was applied to the ordinary rate of cust oms duty depending on the percentage of local raw 
materials and the value added in the zones.  Goods w ith local content up to 20 per cent were subject to 
a flat 10 per cent reduction in the customs duty (e.g. 4.5 per cent instead of 5 per cent).  The customs 
duty for goods with more than 20 per cent local c ontent was rebated by a percentage corresponding to 
the percentage of local content in the good in question.   
126. Some Members urged Lao PDR to remove th e differentiated treatment between imported 
products and the goods produced in the border trad e zones/special economic z one and to apply normal 
import duties, without reductions, when such good s entered the domestic market.  In reply, the 
representative of Lao PDR said that legislation was being reviewed to ensure compliance with WTO 
principles and the ASCM.  Decree No. 162/PM had been amended, while Decree Nos. 25/PM and 
177/PM were being revised with respect to prov isions on the use of domestic over imported goods. 
- Government procurement 
127. The representative of Lao PDR said that gove rnment procurement was regulated by Prime 
Minister Decree No. 03/PM "On Goods, Works, Main tenance, and Services" of 9 January 2004, and 
Regulation No. 063/MOF of 12 March 2004.  Th e requirements of bidding documents and 
procurement manuals were develope d and used by government agencies and State-owned enterprises 
at the central and provincial levels.  The Procurem ent Monitoring Office at the Ministry of Finance 
was responsible for administering the procuremen t of all ministries, governmental agencies, the 
provinces and Vientiane Capital, and State-owned enterprises.   
128. The regulations stipulated seven methods of procurement and defined the precise conditions 
for using each procedure, i.e. (i) public bidding whereby individuals, companies, enterprises, joint 
ventures or international enterprises obtained equal opportunity to submit bids; (ii) limited bidding, 
whereby the number of suppliers was limited, but the procuring entity was required to ensure a 
competitive price and sufficient capacity; (iii) price comparison - domestic and international.  Domestic price comparison implied offers being sought from at least three qualified domestic suppliers, and international price comparison woul d involve at least three qualified international  WT/ACC/SPEC/LAO/4 
 Page 47 
 
 
  suppliers from at least two countries; (iv) direct c ontracting, in which case the procuring entity would 
negotiate the contract terms and c onditions directly with one or more  supplier(s).  Approval for this 
procedure was subject to certain conditions and decided case by case; (v) international competitive 
bidding, where bidders could be domestic or fore ign companies and the bidding notification was 
available abroad.  A margin of preference was taken into account for comparison between domestic 
and foreign suppliers; (vi) pre-qualification of bidd ers, e.g. for large-scale, technically complex and 
high value projects, where the suitability of the bidders would be assessed by a tender committee, a 
number of companies would be short-listed, and th e selected candidates would be invited to submit 
bids; and (vii) two-stage bidding, whereby technical  and methodological requirements were taken into 
account at the first stage, followed by an eval uation of the proposals at the second stage.   
129. Asked whether Lao PDR would consider joining the Agreement on Government 
Procurement, the representative of Lao PDR said the decision would depend on the capacity of governmental agencies to manage the term s and conditions of the Agreement.   
- Transit 
130. The representative of Lao PDR said that Lao PDR was a land-locked country dependent on 
the effective cross-border transit of goods.  ASE AN had developed arrangements to facilitate transit 
trade among its members and to reduce costs in the cross-border movement of goods.  Goods in transit through Lao PDR were regulated accordi ng to Article 33 of the Customs Law (2005) and 
Article 8 of Ministerial Instruction No. 0491/MOF of  16 June 2009.  Goods in transit were exempt 
from import and export duties.   
- Agricultural policies 
(a) Imports 
131. The representative of Lao PDR said that the impor t duty on agricultural products ranged from 
5 to 40 per cent with a simple average of 18.8 per cent.  As agriculture was the backbone of the Lao 
economy, high tariffs were maintained on products co mpeting directly with local production.  In the 
past, imports of all animal parts and agricultural goods produced locally such as chillies, aubergines, 
tomatoes, bananas, lemons and other fruit ha d been banned (Notification No. 870/MOC of 
19 September 1996).  Presently, Lao PDR did not mainta in any seasonal restrictions, prohibitions or 
other controls on the importation of agricultural products other than those listed in Notification 
No. 2151/MOIC.DIMEX of 30 October 2009 (Tables 8 and 9).  Although import controls had been 
relaxed in recent years, Lao PDR nevertheless reserved  the right to impose import restrictions on rice, WT/ACC/SPEC/LAO/4 
Page 48  
 
  the predominant staple in the traditional diet, partic ularly if measures were required to underpin the 
minimum farm gate prices established for rice.  Rice (HS 100610, 100620, 100630 and 100640) was 
subject to non-automatic import licensing requirement s.  According to Notification No. 0100/MOC of 
28 January 2000, each province was required to prep are an annual plan to balance the demand for 
rice.  In case of short supply, th e provincial governor coul d approve the importation of rice.  He added 
that any existing or future import restriction on rice would be applied in accordance with 
WTO Agreements.  In response to a specific query , he said that the procedure for obtaining import 
permits for agricultural commodities and agro-chemicals demonstrated with a flow chart, circulated in 
document WT/ACC/LAO/5 Annex V was no longer va lid.  Lao PDR was now preparing a list of 
goods subject to automatic import licensing which would include certain agro-chemicals and agricultural products and the procedures for their importation.      
(b) Exports 
132. The representative of Lao PDR said that some goods were prohibited to export (Table 11) and 
some products were subject to export licensing (Table  12).  An export tax of 5 per cent was levied on 
coffee beans and livestock.  His Government woul d reserve the right to apply controls on the 
exportation of rice for food security considerations.   
133. A Member noted that Lao PDR had no agricultural export subsidies, but would like to 
maintain a right to use such s ubsidies as long as it remained an LD C.  Lao PDR was encouraged to 
maintain standstill on export subsid ies for agricultural products.   
134. In reply, the representative of Lao PDR noted that Lao PDR did not envisage such measures 
at this stage, but welcomed the underlying developmen t rationale of the flexibilities granted to LDCs.   
(c) Internal policies 
135. The representative of Lao PDR said that his count ry was predominantly an agrarian economy 
as the agricultural sector accounted for more than 50 per cent of Lao PDR's GDP, employed about 
80 per cent of the workforce, and provided a livelihood - often at a subsistence level - to the majority 
of the population.  Rice was the staple crop cultivat ed and consumed domestically.  Other grains and 
pulses, vegetables, fruit, livestock, tobacco and coffee were also produced in Lao PDR.   
136. The representative of Lao PDR provided in formation on domestic  support and export 
subsidies in the agricultural sector for the period 2001-2003 in document 
WT/ACC/SPEC/LAO/1/Rev.1.  Expenditures on "green box" measures – principally the funding of research, pest and disease control, training and exte nsion and advisory services - had averaged some  WT/ACC/SPEC/LAO/4 
 Page 49 
 
 
  KN 56.7 billion (US$5.6 million) per year during this period.  In addition, Lao PDR reported outlays 
on development programmes (Article  6.2) for input subsidies (investment and operating credits 
provided by the Agriculture Promotion Bank to low-in come farmers in poor regions, and electricity at 
reduced rates to poor farmers), and a market pr ice support programme for rice.  The minimum farm 
gate price for rice (in husk) was based on production costs and calcul ated annually; and the external 
reference price was derived from data released by the University of Arkansas.  However, the 
minimum farm gate price had been  well below the external referen ce price throughout the period.  
The Ministry of Agriculture and Forestry had also  spent an average KN 86.4 billion (US$8.5 million) 
per year on irrigation.  All support was well below the 10 per cent de minimis  level.   
137. He noted that his Government had raised  US$19,500 in 1994 to establish a State-owned 
enterprise to purchase farm products at market prices  and resell the goods in the domestic market at a 
later time to stabilize the market.  The enterprise  had operated with a profit since its establishment, 
and no further funding had been necessary.  The Minist ry of Agriculture and Forestry, the Ministry of 
Industry and Commerce, and the National Statistics Centre were developing a market information 
system for the benefit of agricultural producers.   
- Trade in civil aircraft 
138. In response to a specific question concerning th e current import duty on civil aircraft and 
aircraft parts, the representative of Lao PDR said that the rate on aircraft parts was 10 per cent.   
- Textiles regime 
139. The representative of Lao PDR said that textiles were subject to the same general measures 
applied to other products.  The simple averag e applied import duty on textiles and clothing was 
9.46 per cent.   
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL 
- Industrial property protection 
140. The representative of Lao PDR provided a technical note on the implementation of 
the Agreement on Trade-Related Aspects of Inte llectual Property Rights (TRIPS) in document 
WT/ACC/LAO/7, and an action plan for the implem entation of the TRIPS Agreement in documents 
WT/ACC/LAO/15 and Revisions (Table 15).  With th e provision of technical assistance and national WT/ACC/SPEC/LAO/4 
Page 50  
 
  capacity building, the implementation of the TRIP S Agreement would be achieved at the latest by 
January 2013 according to the action plan.  He added that Lao PDR, as an LDC, intended to avail of 
the special and differential treatment provisions provided for under the TRIPS Agreement and WTO 
Ministerial Declarations (paragraph 47 of WT /MIN(05)/DEC and IP/C/40 refers).    
141. At present, industrial property protection was provided through the Prime Minister's Decree 
No. 06/PM "On Trademarks" of 18 January 1 995 and Regulation No. 466/STEA-PMO "On the 
Registration of Trademarks" of 7 March 2002; Decree No. 01/PM "On th e Protection of Patents, Petty 
Patents (Utility Models) and Industrial Designs" of 17 January 2002, and Regulation No. 322/STEA-
PMO "On the Implementation of the Patents Decree" of 18 February 2003.  He added that a new Law 
– the Intellectual Property Law No. 08/NA of 24 December 2007 - covering copyright and related 
rights, trademarks, trade secrets, geographical indica tions, industrial designs, patents, petty patents, 
layout designs of integrated circuits, and the prot ection of plant varieties had entered into force on 
14 April 2008.  The Law would be complemented by an implementing decree and regulations to meet 
the requirements of the WTO.  The estimated timeframe for the adoption of these decrees and 
regulations was by 2011-2012.   
142. A Member noted that Article 2 of the Intell ectual Property Law defined intellectual property 
as a "work of the human mind through inventions an d creations having economic value and benefit in 
social development".  This Member asked Lao PDR to explain whether works eligible for protection 
pursuant to the TRIPS Agreement/Berne Convention and meeting the criteria to qualify as a patent, 
trademark or copyright could be denied protecti on under the Intellectual Property Law on the grounds 
that they did not have economic value or contri bute to social development.  In reply, the 
representative said that this definition set out La o PDR's general policy vision to promote socio-
economic development.  The specific criteria to qua lify for patent, trademark or copyright protection 
in accordance with the TRIPS Agreement/Berne C onvention was provided for in the Intellectual 
Property Law (Sections III.1, V.1 and V.2 ). 
- Responsible agencies for policy formulation and implementation 
143. The representative of Lao PDR said that the Department of Intellectual Property, 
Standardization and Metrology (DISM) in the National Authority for Science and Technology 
(NAST) had overall responsibility for the coordi nation of the implementation of policies on 
intellectual property.  The functions of the DISM in cluded preparation of legislation, the formulation 
of strategic development plans on intellectual prope rty, the establishment of a registration system, 
international co-operation, dissemination of inform ation, and receiving petitions and claims from the 
public and coordinating with other agencies to resolve them.  A copyright and related rights  WT/ACC/SPEC/LAO/4 
 Page 51 
 
 
  information centre had been established under the Copyright Division of the DISM in 2009.  
The centre was, inter alia , responsible for drafting legislation for the management of copyright and 
related rights, notification of information related to  copyright and related rights; and the establishment 
of a database.  The centre also acted as a forum for receiving complaints and could perform mediation 
to address such complaints.  Lao PDR was also in the process of setting up a geographical indications 
information section under the Industrial Property Divi sion of the DISM by 2011.  The Department of 
Legislation in the Ministry of Justice provided advice in the preparation of new legislation and 
endorsed the bills before submission to the Nationa l Assembly.  NAST would coordinate with other 
Ministries and provincial authorities depending on the subject matter, e.g. the Ministry of Industry and Commerce on trademarks and trade secrets, the Ministry  of Agriculture and Forestry (plant varieties), 
and the Ministry of Information and Culture (c opyright and related rights) and other concerned 
ministries. 
144. The Customs Department at the Ministry of Finance was responsible for measures applied at 
the border to enforce intellectual property rights.  The Economic Police within the Ministry of Public 
Security enforced intellectual property rights within the country.     
- Participation in international intellectual property agreements 
145. The representative of Lao PDR said that Lao PD R had become a signatory to the convention 
establishing the World Intellectual Property Organi zation in 1995, acceded to the Paris Convention 
for the Protection of Industrial Property in 1 998, and the Patent Cooperation Treaty in 2006.  
Preparations were ongoing to accede to the Berne Convention for the Protection of Literary and 
Artistic Works (by the end 2011).  Decisions to acced e to the Rome Convention for the Protection of 
Performers, Producers of Phonograms, and Broadcas ting Organizations and the Washington Treaty on 
Intellectual Property in Respect of Integrated Circ uits had been deferred due to technical capacity 
limitations.  In 1996, Lao PDR had signed a tw o-year bilateral Agreement with Thailand on 
trademarks and other areas of intellectual property rights.  Lao PDR was participating in an ASEAN 
treaty on a common filing system for trademarks, industrial designs and in the area of copyright.   
146. Asked about Lao PDR's intenti ons regarding accession to the International Union for the 
Protection of Plant Varieties (UPOV), and urged to join the WIPO Copyright Treaty, the WIPO 
Performances and Phonograms Treaty, the Gene va Phonograms Convention, and the Brussels 
Convention Relating to the Distribution of Progr amme-Carrying Signals Tr ansmitted by Satellite, the 
representative of Lao PDR noted that the TRIPS Ag reement did not require accession to intellectual 
property treaties and conventions such as the UPOV.   His Government would nevertheless study the 
implications of acceding to the various Agreements.   WT/ACC/SPEC/LAO/4 
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  - Application of national and MF N treatment to foreign nationals 
147. The representative of Lao PDR noted that Article  3 of the TRIPS Agreement stipulated the 
principle of national treatment subject to the exce ptions provided in the Paris Convention (which 
Lao PDR had joined in 1998), the Berne Convention (accession in preparation), and the Rome Convention (accession deferred), a nd he expected Lao PDR to accord national treatment in 
accordance with the TRIPS Agre ement once it became bound by the Agreement.  At present, 
foreigners were required to use an accredited represe ntative in Lao PDR to file trademark applications 
pursuant to the Regulation on the Registrati on of Trademarks No. 466/STEA/PMO (2002).  
The accredited representative could also be used fo r the registration of other types of intellectual 
property, e.g. petty patent and industrial designs pursuant to the Regulation on the Implementation of 
the Decree on Patent, Petty Patent and Industr ial Designs No. 322/STEA-PMO (2003).  Concerning 
adherence to the MFN principle, the intellectua l property legislation of Lao PDR did not accord 
additional favourable treatment to the nationals of  any country.  He added that the 2007 Intellectual 
Property Law included provisions on MFN and nationa l treatment (Articles 6 and 7) and ensured 
conformity with Article 3 of the Berne Conve ntion and Article 9 of the TRIPS Agreement. 
- Fees and taxes 
148. The representative of Lao PDR said that as Lao PDR was still in the process of introducing 
protection for various forms of intellectual prope rty.  The current fees and charges related to 
trademarks, patents, petty patents and industri al designs are enumerated in Table 16.   
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights 
149. The representative of Lao PDR said that a new Intellectual Property Law - based on the 
WIPO model law and the requirements of the TR IPS Agreement - had entered into force in 
April 2008.  The Law included provisions on copyri ght and related rights, thereby protecting this 
subject matter for the first time in Lao PDR.  A Decree to implement the Intellectual Property Law 
would be adopted by 2011 and a Regulation on Copyri ght and Related Rights was expected by 2012.  
His Government was also prepar ing to accede to the Berne Conve ntion by the end of 2011.  
A copyright and related rights information centre had been established in 2009.      WT/ACC/SPEC/LAO/4 
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  150. Having reviewed a draft of the Intellectual Prope rty Law, a Member had noted that the draft 
generally appeared to fall short of full complianc e with the requirements under the Berne Convention 
and the TRIPS Agreement, and specifically with respect  to the rights conferred, registration to receive 
protection, exceptions and exclusions, the non-inclus ion of scientific works and compilations of data, 
and the definition of related rights.  Moreover, the draft law had not set forth the term of copyright 
protection for audiovisual works and sound recordings .  In reply, the representative of Lao PDR said 
that many of the points raised had been addressed  in the promulgated Law, including the term of 
protection (Articles 93 and 94), the objects of protection (Articles 74, 75, 77 and 78), the rights granted (Parts 4 and 5), the term of protection fo r audiovisual works and sound recordings (Article 
94), the requirement to extend protection to scientific  works and compilations of  data (Article 74), and 
other requirements of the TRIPS Agreement.  He ad ded that the Law did not require the registration 
of a copyright for protection, as works were prot ected automatically upon creation (Article 79).  
In accordance with Decision No. 1028/PMO-NAST "On Notifying Information on Copyright and 
Related Rights" of 17 June 2009, ho wever, owners of copyright a nd related rights could voluntarily 
notify their works.  This could be useful as evidence in case of violations or disputes. 
151. On the 2007 Intellectual Property Law, a Member  noted that copyright protection was not 
extendable to ideas and requested Lao PDR to am end the Law (Articles 3.25 and 79) to ensure 
conformity with Article 9.2 of the TRIPS Agreem ent.  Lao PDR was also requested to include 
unencrypted broadcasts in the definition of related ri ghts.  Noting that Article 78 of the Law appeared 
to provide protection for the related rights of La o nationals, this Member asked Lao PDR to explain 
how protection would be extended to the rights of  foreign performers and producers of phonograms 
and broadcasting organizations.  Lao PDR was al so requested to explain how it would address 
situations where the term of protection for copyri ght and related rights provided for in its Law was 
inconsistent with or differed from the term extended in an international convention or agreement.   
152. The representative of Lao PDR replied that the de finition of copyright e xplicitly referred to a 
"work", which was understood to be an expression creat ed by the author, in whatever mode, in the 
domains of art, literature or science.  The definiti on would be refined in the implementing Decree of 
the Intellectual Property Law and would explicitly cl arify that copyright protection did not extend to 
ideas.  Unencrypted broadcasts were, in his view, covered under the definition of broadcasting, and 
the rights of foreign performers and producers of  phonograms and broadcasting organizations would 
be protected by Lao PDR's participation as a contr acting party to international conventions.  He said 
that in case the term of protection in the Intellect ual Property Law was inconsistent with the term 
accorded in an international convention or agreemen t to which Lao PDR was a contracting party, then 
the term of protection of that international conven tion or agreement would prevail.  In response to WT/ACC/SPEC/LAO/4 
Page 54  
 
  certain specific questions, he said that the Inte llectual Property Law included provisions stipulating 
that use of protected intellectual property by a th ird party, whether for commercial or non-commercial 
purposes, must be with the authorization of the right holder.  In the event of a conflict of interest, the 
parties could avail of the dispute resolution provisi ons of the Law (Section VIII) or seek remedy in the 
courts.    
153. Asked to clarify which "works" of "traditiona l art and literature" w ould be eligible for 
copyright protection and whether collective ownershi p of such works was permitted, he said that the 
collective ownership of copyright for traditiona l cultural expressions w as permitted in Lao PDR 
(Articles 83 and 87 of the Intellectual Property Law) .  The local community would be considered the 
"author" of such works.  Traditional art and literature  were (local or group) traditional compilations of 
creations revealing the way of life of the comm unity, the performance was culturally and socially 
consistent and transmitted orally th rough generations, copied or made similar such as local stories, 
poems, maxims, or proverbs; local songs, dances, or music; traditional dance, games, rites and 
competitions; or musical instruments, paintings, dr awings, sculptures, architectural designs having 
been created using local materials and equipment.  Individuals or entities using works of traditional 
art and literature were required to protect the s ource of the traditional performance and preserve its 
original values.  The protection involved moral rights and not commercial rights.  Their term of protection had not been determined.   
154. As for limitations on copyright subject to comp ensation (Articles 95 and 97), individuals or 
entities "broadcasting programs with sponsorship" w ould not be liable for obtaining permission from 
the copyright owner for using published works, but would be liable to paying royalties or remuneration as agreed to the authors, copyright owners, performers, or broadcasting organizations 
for sound/video recordings.   
- Trademarks, including service marks 
155. The representative of Lao PDR said that tradem arks were protected pursuant to the Prime 
Minister's Decree No. 06/PM "On Trademarks" of 18 January 1995, Regulation No. 466/STEA-PMO 
"On the Registration of Trademarks" of 7 Marc h 2002, and the 2007 Intellectual Property Law.  
A trademark was defined as a mark (i.e. any sign, which could be an image, word, letter, number, 
signature, name, colour, form or shape of an item,  or combination thereof) which could be used to 
distinguish a good or service from others.  Applicati ons for registration of a trademark were to be 
filed with the Department of Intellectual Propert y, Standardization and Metrology (DISM) in the 
NAST.  The Department processed the application,  entered the approved trademark in a national 
register, and issued a trademark registration certifi cate.  The registered mark was published in the  WT/ACC/SPEC/LAO/4 
 Page 55 
 
 
  Official Gazette of the NAST.  The normal time frame between applicati on and the granting of a 
certificate was six months or less.  The term of protection for a registered trademark was ten years, 
renewable indefinitely for successive periods of ten years.  Applications for renewal should be filed 
six months prior to expiry.  A trademark registration could be cancelled for non-use during a continuous period of five years, unless it could be demonstrated that special circumstances had 
prevented the use of the trademark.   
156. Excluded from registration were trademarks that  were (i) not clear and did not identify any 
product or service; (ii) contrary to national culture, mo rals or public order; (iii) misleading or likely to 
mislead, in particular with respect to geographical origin, nature or character istics; (iv) forged or 
copied; (v) comprising symbols such as national seals, flags or emblems, or other symbols closely identified with a nation's culture or  heritage; (vi) comprising names or bearing the official seals of 
countries or governments, international organizations , or organizations established by treaties; or 
(vii) if the mark was identical with - or confusingl y similar to - trademarks or trade names of goods or 
services which were widely "well-known".   
157. The owner of a trademark already registered abroad had the right to claim priority when filing 
for registration in Lao PDR.  Registration for pr otection of a trademark was not compulsory in 
Lao PDR, but the rights of the owner or his/her c onsent could only be recognized if a trademark had 
been registered.  Owners of registered trademarks ha d the exclusive right to use the trademarks, or to 
authorize others to use them.  Individuals or legal entities using trademarks without the consent of the 
owner would receive a warning from DISM, which w ould invite the parties concerned to find a 
mutually acceptable solution.  If no agreement wa s reached, the matter could be referred to the 
Economic Arbitration Office under the Ministry of Jus tice, or to the courts.  The suspected infringer 
could be subject to legal sanction if he/she ignored  the Agreement, or if the infringement was highly 
damaging to the economic interests of the rightful owner, etc.   
158. Responding to specific questions and comments, he acknowledged that Article 12 of the 1995 
Decree made no reference to marks identical or confus ingly similar to marks that were the subject of 
registration or pending applications (but not well-kn own).  Decree No. 06/PM would also need to be 
amended to ensure full compliance with Article 15. 5 of the TRIPS Agreement regarding the provision 
of reasonable opportunity for petitions to cancel a regi stration.  He added that Articles 16, 23 and 45 
of the 2007 Intellectual Property Law incorporated  the rights conferred to the trademark owner by 
virtue of Article 16.1 of the TRIPS Agreement to prevent the use of "similar signs" and to presume 
confusion where an identical mark was used without authorization.  Registration of trademarks that 
were the same as, or similar to, trademarks of any goods (or services) already registered would be WT/ACC/SPEC/LAO/4 
Page 56  
 
  denied, even if used on goods not similar to the goods associated with the registered mark, unless the 
new registration was sought by the owner of the re gistered mark.  The 2007 Intellectual Property Law 
would be supplemented by an implementing decree to  preserve the exclusive and prior rights of an 
owner and to cover examination of a pplications for a trademark and cancellation of a registered mark.     
- Geographical indications, including appellations of origin 
159. Having reviewed a draft of the Intellectual Prope rty Law, a Member noted that the provisions 
relating to geographical indications  (GIs) were limited to definiti on and duration.  This Member 
therefore requested further information on how Lao PDR intended to provide protection for geographical indications, including additional protection for GIs for wines and spirits, and addressing 
situations where the owner of an earlier protected trademark would be able to prevent the protection 
or registration of a confusingly similar and late r-in-time geographical indication in accordance with 
Articles 16.1 and 24.5 of the TRIPS Agreement.   
160. The representative of Lao PDR replied that provisions for the protection of geographical 
indications had been included in the Intellect ual Property Law No. 08/NA of 24 December 2007.  
Article 19 of the Law established the requirements fo r the protection of a geographical indication.  
The term of protection of a regist ered geographical indication was perm anent, but third parties had the 
right to seek cancellation of a GI registration, if the registration had been made in bad faith as per 
Articles 57, 115, 116 and 117 of the Intellectual Prope rty Law.  Detailed provisions, in line with 
Articles 16.1 and 24.5 of the TRIPS Agreement, w ould be included in the implementing decree.  
Lao PDR had set up a committee to supervise a proj ect on the establishment of potential geographical 
indications under the Ministry of Agriculture a nd Forestry in 2007, and established a geographical 
indications registration unit under the DISM in 2009.     
161. In response to specific questions on the Law and the draft implementing decree regarding the 
possible co-existence of protected geographical indi cations and trademarks and on the safeguards in 
place to ensure compliance with Article 16 of th e TRIPS Agreement, the representative of Lao PDR 
said that a geographical indication could not be register ed if the indication was "identical or similar to 
protected trademarks that lead to misunderstanding as  to the origin of the said goods" (Article 25.3 of 
the Intellectual Property Law).  The geographical indi cation, however, could be registered if its use 
would not mislead the consumer.  Article 100 (par agraph 1.6) barred the owner of a geographical 
indication from preventing the use of the same or similar trademark where the mark acquired protection before the date of filing of a registra tion application for the geographical indication.  
Foreign geographical indications that were not pr otected in the foreign jurisdiction could not be 
registered in Lao PDR.  He added that comment s with regard to WTO jurisprudence (WT/DS174/R)  WT/ACC/SPEC/LAO/4 
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  and the safeguards for compliance with Articles 16 and 17 of the TRIPS Agreement would be taken 
into account in developing the implementing decree to the Intellectual Property Law.  
- Industrial designs 
162. The representative of Lao PDR said that Article 29 of Decree No. 01/PM "On the Protection 
of Patents, Petty Patents (Utility Models) and Industrial Designs" of 17 January 2002 provided 
protection for new industrial designs.  The Decr ee covered the protection of textile designs 
(Article 32), but did not distinguish new from origin al designs.  Provisions on industrial designs had 
also been included in the 2007 Intellectual Property Law.   
163. Having reviewed the draft Law, which appear ed to be restating provisions in Decree 
No. 01/PM, a Member noted that Lao PDR would seem  to be protecting industrial designs for five 
years, less than the ten-year term of protecti on provided for under the TRIPS Agreement.   
164. In reply, the representative of Lao PDR said  that in accordance with Article 48 of the 
Intellectual Property Law,  the term of protection fo r industrial designs was 15 years, from the date of 
filing the application.  Application procedures for the registration of industrial designs were provided 
for in Section III of the Intellectual Property Law.   
- Patents 
165. The representative of Lao PDR said that patents we re granted for inventions considered new, 
involving an inventive step, and industrially applicable pursuant to Decree No. 01/PM "On the Protection of Patents, Petty Patents (Utility Mode ls) and Industrial Designs " of 17 January 2002, 
Regulation No. 322/STEA-PMO of 18 February 200 3, and the 2007 Intellectual Property Law.  
Discoveries; scientific theories and mathematical  methods; schemes, rules or methods for doing 
business; the performance of pure mental acts or pl aying games; methods for the treatment of the 
human body or animals; and inventions contrary to public order or national cultural morality were not 
recognized as patentable subject matter.  The term  of protection for a patent was 20 years without 
renewal (ten years for a petty patent).  The requirements of Article 29 of the TRIPS Agreement - 
conditions on patent applicants - were covered by Article 30 of the Intellectual Property Law.   
166. The rights conferred to the patent owner - in cluding the right to assign, transfer by succession 
and to conclude licensing contracts - were pr ovided through Articles 45, 101 and 108 of the 
Intellectual Property Law and were, in his opin ion, in conformity with Article 28 of the 
TRIPS Agreement.  Exceptions to the exclusive ri ghts conferred by a patent were laid down in 
Articles 53 and 54 of the Law.  Responding to a comme nt that earlier provisions had appeared to be WT/ACC/SPEC/LAO/4 
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  attempting to provide for a compulsory licence wher e the provisions of Article 5(A)(4) of the Paris 
Convention applied, although this was not clear from the text, he said that Article 54 of the 2007 Law 
related to non-use or insufficient exploitation of a pa tented invention for three years after the patent 
had been granted.   
167. The representative of Lao PDR said that Article 53 of the Intellectual Property Law 
concerned compulsory licensing of the use of patent s or petty patents in cases of national emergency 
or urgent need - for non-commercial purposes.  The permit would determine the limitations on use 
and stipulate the compensation to the right owner.  The owner could challenge the issue of the licence 
and the compensation offered within 60 days.  Hence, such compulsory licence would be non-exclusive and define the scope, function, time lim it, adequate compensation, and the condition of 
payment as provided for in the Paris Convention.   
168. The representative of Lao PDR added that some aspects of the TRIPS Agreement relating to 
patents had been addressed further in the 2007 Intellectual Property Law, notably more specific 
provisions had been added regarding the opportunity for judicial review of decisions to revoke or 
forfeit a patent (Article 32 of the Agreement), the conditions for providing limited exceptions to the 
rights conferred (Article 30), a nd to allow reversal of the bur den of proof in process patent 
infringement actions in the instances foreseen in Article 34 of the TRIPS Agreement.   
- Plant variety protection 
169. The representative of Lao PDR said that provi sions on plant variety protection had been 
included in Section IV of the 2007 Intellectual Property Law.  The requirements for a new plant 
variety to be protected were novelty, distinctness, uniformity, stability and denomination.  The term of 
protection of new plant varieties was 25 years for trees and 15 years for plants.   
170. Asked whether Lao PDR would consider becoming a UPOV member, the representative of 
Lao PDR said that Lao PDR would focus its limite d capacities on implementing TRIPS requirements, 
as it understood that the TRIPS Agreement did not re quire membership of the UPOV Convention.   
- Layout designs of integrated circuits 
171. The representative of Lao PDR said that protection of layout designs (topographies) of 
integrated circuits were provided for in Sections III, IV, VI and VII of the 2007 Intellectual Property 
Law.  The term of protection of layout designs (t opographies) of integrated circuits was 12 years.  
A decision to accede to the Washington Treaty on In tellectual Property in Respect of Integrated 
Circuits had been deferred due to technical capacity limitations.    WT/ACC/SPEC/LAO/4 
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  - Requirements on undisclosed information,  including trade secrets and test data 
172. The representative of Lao PDR said that Article  95 of the Criminal Law contained a general 
provision making any person disclosing confidential matters having come to his/her knowledge in the 
performance of his/her profession or duty, and thereby causing damage to the owner of the 
confidential information, liable to imprisonment of three to six months and a fine ranging from 
KN 50,000 to KN 500,000.   
173. Provisions providing protection for undisclosed in formation or trade secrets were contained in 
Articles 20, 101, 107 and 111 of the 2007 Intellectua l Property Law.  Lao PDR would develop more 
specific legislation to comply with Article 39 of the TRIPS Agreement, notab ly in the implementing 
decree for the Law.   
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS 
174. The representative of Lao PDR said that measures to control abuse of intellectual property 
rights had been included in Decree No. 01/PM "On the Protection of Patents, Petty Patents (Utility 
Models) and Industrial Designs" (Articles 20 a nd 21), Decree No. 06/PM "On Trademarks", and 
Decree No 15/PM "On Trade Competition".  Provisions to control anti-competitive practices had also 
been included in Articles 54 – 57 and 111 of the 2007 Intellectual Property Law.   
- ENFORCEMENT 
175. The representative of Lao PDR said that, in add ition to the existing legislation on intellectual 
property protection (industrial property; copyright a nd related rights), provisions relevant to the 
enforcement of IPRs could be found in the Civil Procedure Law No. 02/NA of 17 May 2004, the 
Criminal Procedure Law No. 01/NA of 15 May 20 04, the Penal Code Law, the Law No. 03/NA 
"On Judgement Enforcement" of 15 May 2004, the Law "On the People's Courts", and the Customs 
Law No. 05/NA of 20 May 2005.  Ri ght holders could opt for administrative measures or civil or 
criminal procedures to protect their rights, and any decision of the trial court could be appealed to a 
higher court.  So far, one IPR case had been filed for resolution in the court.  He added that the 
enforcement procedures and remedies were being strengthened through the 2007 Intellectual Property 
Law and its implementing decree and regulations.   
- Civil judicial procedures and remedies 
176. The representative of Lao PDR said that right hol ders could evoke civil judicial procedures 
pursuant to the Civil Procedure Law (Artic les 78, 83, 92 and 93), Decree No. 06/PM WT/ACC/SPEC/LAO/4 
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  "On Trademarks" (Article 17), Decree No. 01/PM "O n the Protection of Patents, Petty Patents (Utility 
Models) and Industrial Designs" (Article 19) a nd the implementing Regulations Nos. 322/STEA-
PMO (Article 42) and 466/STEA-PMO (Article 23).  A judge could or der the production of evidence 
to substantiate a party's claims according to Article  20 of the Civil Procedure Law, and Article 76 of 
the Law provided for additional remedies including  the seizure and destruction of infringing goods, 
materials and implements.  In addition, provisions on civil judicial procedures and remedies would be 
included in the implementing decree and regulati ons to the 2007 Intellectual Property Law.   
177. Certain requirements of the TRIPS Agreement were not clearly reflected in the existing 
legislation, notably the ability of a judge to en join a defendant from infringing intellectual property 
rights; order the payment of adequate damages; allo w the right holder to recover enforcement costs, 
lost profits and/or statutory damages; indemnifica tion of the defendant, including attorney's fees, in 
the event of litigation abuse by plaintiffs; and ensu ring that administrative remedies would conform to 
these principles.  Current legislation had no provision exempting public authorities and officials from liability in connection with the administration of IP  laws where actions were taken or intended in 
good faith and within the scope of their authority.  These issues would be considered further, and 
provisions would be elaborated in the implementi ng decree and regulations to the 2007 Intellectual 
Property Law.   
- Provisional measures 
178. The representative of Lao PDR stated that judges could grant temporary restraining orders 
and provisional relief to prevent infringement and to preserve evidence according to Articles 119 and 
124 of the Civil Procedure Law and the Law "On J udgement Enforcement".  The customs authority 
had the right to inspect and seize infringing goods (Article 76.10 of the Customs Law).  Asked about 
indemnification of the defending party in case of unj ustified provisional relief, he said that Article 7 
of the Criminal Procedure Law allowed defendants to  protect their rights and legitimate interests.   
- Administrative procedures and remedies 
179. The representative of Lao PDR said that administrative procedures and remedies had been 
established pursuant to the Decree "On Trademarks", the Decree "On the Protection of Patents, Petty Patents (Utility Models) and Indus trial Designs", and the 2007 Intellectual Property Law.  
The procedures would be elaborated further in the implementing decree and regulations of the Law.  
180. Administrative officials had the authority to issu e injunctions to order a party to desist from 
an infringement and to prevent infringing goods  from entering the channels of commerce.   WT/ACC/SPEC/LAO/4 
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  For example regarding trademarks, the Department  of Intellectual Property, Standardization and 
Metrology could issue a warning by administrative procedure to individuals and legal entities using 
trademarks without the consent of the owner or otherwise pursuing the use of trademarks 
illegitimately.  The DISM would invite the parties concerned to discuss the alleged violation and find 
a mutually agreeable solution (acceptable also to  DISM).  If no Agreement was reached, the matter 
could be referred to the Economic Arbitration Office under the Ministry of Justice or to the courts.   
181. He added that Lao PDR had a tradition to se ttle trademark disputes through administrative 
channels.  Eight cases involving claims of trademark infringement had been settled thus far; seven of 
them through DISM, and one case by the Economic  Arbitration Office.  Although the settlements 
needed to be "certified" by a court to be lega lly enforceable, he considered the administrative 
procedure generally effective.  He stressed that  the complainant could bring an infringement case 
directly before a court and was not required to invoke the administrative procedure.   
- Special border measures 
182. The representative of Lao PDR said that the 2005 Customs Law and its implementing Decree 
No. 362/PM included provisions for intellectual prope rty rights protection at the border.  Right 
holders would request the Department of Intellectua l Property, Standardization and Metrology in the 
NAST to take action, and the Department coordinate d with the Customs Department in the application 
of border measures.  Pursuant to Article 76.10 of the Customs Law, the customs authorities could inspect and seize infringing goods.   
183. In response to specific questions on whethe r the Customs Law and Decree No. 362/PM 
allowed for inspection and seizure of both impor ted and exported infringing goods, suspended the  
release of counterfeit or pirated goods, and whether further provisions were being contemplated, he 
noted that provisions on special border measures had also been included in Article 124 of the 2007 Intellectual Property Law which authorized border officials to inspect, seize and impound infringing 
imported or exported goods.  Articles 129 through 135 of the Intellectual Property Law elaborated the 
applicable sanctions.  Provisions  covering Articles 51 through 55 of the TRIPS Agreement would be 
taken into account in implementing regulations of  the Customs Law and in the Decree implementing 
the Intellectual Property Law by 2011.   
- Criminal procedures 
184. The representative of Lao PDR said that the exis ting legislation on trademarks and patents, 
petty patents and industrial designs allowed recourse to criminal pr oceedings in case of infringement WT/ACC/SPEC/LAO/4 
Page 62  
 
  of intellectual property rights.  Penalties were stipul ated in the Penal Code Law and in the Criminal 
Procedure Law.  One IPR case had so far been filed in Lao courts.   
185. Asked to explain how existing legislation complie d with Article 61 of the TRIPS Agreement, 
he added that the 2007 Intellectual Property La w (Article 134) and its implementing decree and 
regulations would also include sanctions against infringement of all intellectual property rights.  
Penalties were foreseen in the form of imprisonm ent ranging from three months to two years, and 
fines between KN 0.5 million and KN 5 million.   
VI. POLICIES AFFECTING TRADE IN SERVICES 
186. The representative of Lao PDR said that servi ces accounted for a quarter of all trade and 
around 38.4 per cent of Lao PDR's GDP in 2009.  The public sector had traditionally been the 
principal services supplier, but with market-oriented reforms and privatization the private sector was 
gaining prominence.  The main services sectors were wholesale and retail trade, followed by 
transportation, storage, communication and financia l services.  Tourism was an important source of 
export revenue.   
187. The legal framework and the regulatory capacity for several service sections were still being 
developed.  Ministries and agencies responsible fo r services included the Ministries of Planning and 
Investment; Public Works and Transport; Justice;  Finance; Health; Education; Information and 
Culture; Agriculture and Forestry; Industry and Commerce; Energy and Mining; and Labour and 
Social Welfare; the Bank of Lao PDR; the Nationa l Authority for Science and Technology; the Water 
Resources and Environment Administration; the Na tional Tourism Administration; and the National 
Sports Committee.  The Ministry of Planning and Investment coordinated services negotiations under  
the ASEAN Framework Agreement on Services, wher eas the Ministry of Industry and Commerce had 
overall responsibility for trade in services issues as they arose in the WTO.  His authorities were 
establishing the GATS enquiry point in the Foreign Trade Policy Department of the Ministry of 
Industry and Commerce.  The enquiry point wo uld be operational upon accession to the WTO. 
188. He noted that investment in service sectors were  governed by the new investment legislation, 
i.e. Law No. 02/NA "On Investment Promotion".  The Business Law No. 03/94/NA of 18 July 1994 which had reserved certain activities for Lao nationa ls, notably services incidental to forestry or 
manufacturing, retail services, clerical or secretarial services, tourist guides, road transport services, 
teaching the Lao language, security guard services, building cleaning services and postal services had 
been replaced by the Enterprise Law No. 11/NA of  9 November 2005, which aimed at providing 
foreign and domestic investors an opportunity to  conduct businesses on an equal footing. However,  WT/ACC/SPEC/LAO/4 
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  the Land Law No. 04/NA of 21 October 2003 stipulat ed that foreign nationals or juridical persons 
were not entitled to own land but c ould own premises or lease land.  Pursuant to the Labour Law 
No. 06/NA, foreign investors were encouraged to gi ve priority to Lao nationals in recruitment.  
Foreign employees should be no more than 10 per cent of the unskilled workforce or 20 per cent of the skilled employees, and enterprises were urged to upgrade the skills of local employees.    
189. Foreign investors could also open representative offices or branches (Article 48 of Law 
No. 02/NA "On Investment Promotion").  This, however, did not obviate the standard registration 
requirements in accordance with applicable laws and regulations.   
190. In legal services, foreign nationa ls could provide advisory services as legal consultants, but 
could not represent clients directly in the court.  According to Article 13 of the Prime Minister's Decree No. 64/PM of 21 February 1996, membership in the Lao Bar Association was necessary to 
practice law in a court.  However, membership in the Lao Bar Association was limited to Lao 
nationals.   
191. Lao PDR was preparing for the mutual rec ognition of professional qualifications in the 
framework of a Mutual Recognition Arrangement (MRA) with other members of ASEAN.  Seven 
MRAs had been concluded by December 2009 in accountancy services, architectural services, 
engineering services, nursing services, medical pr actitioners, dental practitioners, and surveying 
qualifications. 
192. The banking system was under the supervision of BOL and regulated by Law No. 03/NA 
"On Commercial Banks".  The securities market was in process of being established.  Law 
No. 11/90/NA "On Insurance" and its implemen ting decree governed the insurance sector.  
The insurance market remained narrow whereby most insuran ce coverage applied to non-life 
insurance products and only a small proportion of  the Lao population had insurance coverage.  
A monopoly on insurance services granted to Assuran ces Généerales du Laos, a joint venture with 
51 per cent foreign ownership, had expired in 2002. 
193. Although some natural monopolies existed, particularly in the supply of public services, a 
number of sectors had been opened to competition, including the telecommunication, insurance, air 
and road transport, water supply, and hospital ser vices sectors.  La Poste du Lao had retained a 
monopoly on the supply of postal services related to  postal savings, national defence and national 
security, but all other postal services, including co urier services, were open to competition.   WT/ACC/SPEC/LAO/4 
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  194. The Telecommunications Act No. 02/NA of 10 April 2001 provided the legal framework for 
telecommunication services.  The National Author ity for Post and Telecoms provided regulatory 
oversight for this sector.  Domestic and interna tional fixed line telephone services were no longer a 
monopoly for the Lao Telecommunications Company,  a joint venture with 49 per cent foreign 
ownership.  Five companies provided mobile telephony services, and there were no specific 
limitations on operators of e nhanced and value-added services, including internet services.   
[Lao PDR submitted an initial offer on specific comm itments in services in October 2007 (document 
WT/ACC/SPEC/LAO/3) and revised offers in June 2008, June 2009, and July 2010 (document WT/ACC/SPEC/LAO/3/Rev.3)] 
VII. TRANSPARENCY - Publication of information on trade 195. The representative of Lao PDR said that the Decree "On the SPS and TBT Notification 
Centre and Enquiry Points" to be adopted by the end of 2010 included provisions for prior comment 
and public review of proposed SPS and TBT regulations and legislati on.  He also noted that public 
consultations with stakeholders were required for ad opting laws - particularly those relating to many 
parties and the vital interests of the Lao people - pursuant to Article 37 of the Presidential Ordinance 
No.02/OPR "On Legal Act Drafting" of 20 October 2003.  The Ordinance also provided for the publication of laws and regulations in the Official Gazette and/or dissemination through mass media.  
A Member encouraged Lao PDR to consider enacti ng a broader regulatory review process, to foster 
greater overall transparency.   
- Notifications 
[to be completed] 
VIII. TRADE AGREEMENTS 
196. The representative of Lao PDR said that Lao PDR had joined ASEAN and the ASEAN Free 
Trade Area (AFTA) in 1997.  By implementing the AFTA Common Effective Preferential Tariff 
scheme, duties on imports into Lao PDR from other ASEAN members would set to fall to zero, or maximum 5 per cent, on nearly 99 per cent of the tariff line items (8,300 lines).  For goods on the "Sensitive List" (203 tariff lines), Lao PDR would el iminate the duties by 2015, or in some cases by 
2018.  Lao PDR had included 464 tariff line items on the "General Exemption List", thus excluded 
from any reduction commitment.  He estimated that  about 60 per cent of Lao PDR's imports would be  WT/ACC/SPEC/LAO/4 
 Page 65 
 
 
  covered when AFTA had been fully implemented.   Lao PDR was also a member of the ASEAN 
Framework Agreement on Services and the ASEAN Investment Area Agreement.  Negotiations for 
Free Trade Agreements with ASEAN di alogue partners were underway.   
197. Lao PDR had signed bilateral tr ade and economic cooperation ag reements with Argentina, 
Belarus, Cambodia, China, the European Union,  India, Kuwait, Malaysia, Mongolia, Myanmar, 
Democratic People's Republic of Korea, the Russian  Federation, Thailand, Turkey, the United States, 
and Viet Nam.  Lao PDR was also a party to the Asia Pacific Trade Agreement, together with 
Bangladesh, China, India, Republic of Korea, a nd Sri Lanka.  Lao PDR be nefited from preferential 
access under the General System of Preferences acco rded to LDCs by both developed and developing 
countries.   
CONCLUSIONS 
[to be completed] WT/ACC/SPEC/LAO/4 
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  ANNEX 
Laws, Regulations and Other Information Pr ovided to the Working Party of Lao PDR
 
- Law No. 5/95/NA "On the Bank of the Lao PDR" of 14 October 1995; 
- Decree No. 95/PM "On the Bank of Lao" of 22 June 1993; - Regulation No. 02/BOL "On Commercial Banks and Financial Institutions' Capital Adequacy 
Under Supervision by the Bank of the Lao PDR" of 15 January 1996; 
- Regulation No. 04/BOL "On Protecting Soundn ess Practices of the Commercial Banks and 
Financial Institutions which are Under the S upervision of the Bank of the Lao PDR" of 
15 January 1996; 
- Additional Instruction No. 01/BOL "On Implemen tation of Some Articles of the Instruction 
No. 02/BOL of 29 September 2003" of 5 February 2004; 
- Regulations No. 08/BOL "On Foreign Currency Exposure" of 7 May 1996; 
- Decree No. 53/PCM "On the Management of Foreign Exchange and Precious Metals" of 
7 September 1990; 
- Law No. 02/NA "On Investment Promotion" of 8 July 2009; 
- Law No. 11/NA "On the Promotion of Foreign Investment" of 22 October 2004; 
- Decree No. 301/PM "Regarding the Implementation of the Law on the Promotion of Foreign 
Investment" of 12 October 2005; 
- Law No. 1/94 "On the Promotion and Management of Foreign Investment in the Lao PDR" of 
14 March 1994; 
- Decree No. 46/PM "On the Implementation of the Law on the Promotion and Management of 
Foreign Investment in the Lao PDR" of 23 March 2001; 
- Decision No. 013/CPC "On the Rules for Cons ideration Approval of Foreign Investment 
Project in the Lao PDR" of 27 February 2002; 
- Law No. 10/NA "On the Promotion of Domestic Investment" of 22 October 2004; - Domestic Investment Promotion Law No 03/95/NA of 14 October 1995; 
- Resolution No.3/NA "Approving the Dom estic Investment Promotion Law" of 
14 October 1995; 
- Decree No. 27/PM "On Domestic Investment Promotion" of 26 October 1995; - Law No. 04/97/NA "Mining Law" of 12 April 1997; - Prime Minister's Order No. 18/PM "On Forest ry Management Policy for the Year 2002-2003" 
of 4 October 2002; 
- Notification No. 11/PM "On the Management of Forestry and the Timber Industry" of 
23 August 1999; 
- Forestry Law No. 01/96 of 11 October 1996; - Resolution "On the Adoption of the Forestry Law No. 04/96" of 11 October 1996; - Decree No. 125/PDR "On the Promulgation of the Forestry Law" of 2 November 1996; 
- The Constitution of the Lao PDR of 15 August 1991; 
- Presidential Ordinance No. 02/OPR "On Le gal Act Drafting" of 20 October 2003; 
- Enterprise Law No. 11/NA of 9 November 2005; - Business Law No. 03/NA of 18 July 1994; - Decree No. 31/PMO "On the Implementation of the Business Law" of 1 February 1996; - Notification No. 750/MOC "On the Implementation of Enterprise Registration Based on the 
Business Law" of 6 August 1996; 
- Decree No. 206/PMO "On Goods Trading Business" of 11 October 2001; - Decree No. 205/PM "On Export and Import" of 11 October 2001; - Regulations No. 462/MOC "On the Authoriza tion for the Operation of the Import-Export 
Business" of 8 December 1993; 
- Notification No. 870/MOC "Amendment to Notification No. 175/MOC of 4 April 1994 - On 
Prohibited Goods for Import or Export" of 19 September 1996; 
- Notification No. 1552/MCTPC "On the Import of Motor Cycles Over 250cc" of  8 July 1996;  WT/ACC/SPEC/LAO/4 
 Page 67 
 
 
  - List of Chemical Products Under Restricted Control No. 1364/95/DFM of September 1995; 
- Decree No. 03/PR "On the Preservation of Cultura l, Historical and Natural Heritage" of  
20 June 1997; 
- List of Medicines Prohibited in the Lao PD R based on Decree of the Ministry of Public 
Health No. 740/MPH of 3 April 1994; 
- Decree No. 180/PM "On Import Licensing Procedures" of 7 July 2009; 
- Notification No. 2151/MOIC.DIMEX "On the List of Controlled Goods Subject to 
Non-Automatic Import and Export Licensing Pro cedures in Lao PDR" of 30 October 2009; 
- Notification No. 0202/MOC.FTD "On the List of Imports and Exports Subject to Licensing 
from Trade Authorities and Subject to Technical Certification from Related Authorities (for 
the year 2002-2003)" of 14 February 2003; 
- Law No. 05/NA "Customs Law" of 20 May 2005; - Decree No. 362/PM "On the Implementation of  the Customs Law" of 19 October 2007;  
- Law No. 4/94/NA "Customs Law" of 18 July 1994; - Decree No. 228/PM "On the Origin of Import and Export Goods" of 22 April 2010; 
- Decree No. 187/PM "On the Abolishing of Export Tariffs for Agricultural Products" of 
21 October 1994; 
- Minister Instruction No. 230/MOF "On the A bolishing of Export Tariffs for Agricultural 
Products" of  4 March 1995; 
- Decree No. 85/PM "On the Management of the Standards and Quality of Goods and Services" 
of 2 November 1995; 
- Provisions No. 105/FMC for Quality Control of 31 October 1991; 
- Standards Law No. 13/NA of 26 December 2007; - Regulation No. 0719/MAF "On the Management and Use of Plant Sp ecies and Seeds for 
Planting in the Lao PDR" of 3 December 1997; 
- Regulation No.0639/MAF "On the Quarantine of Plants in the Lao PDR" of 2 July 1993; 
- Decree No. 66/PM "On the Quarantine of Plants in the Lao PDR" of 23 March 1993; 
- Regulation No. 894/MAF "On the Control and Use of Plant Pesticides in the Lao PDR" of 
21 November 1992; 
- List of pets and diseases of plants quarantine; - Law No. 03/NA "On Livestock Production and Veterinary Matters" of 25 July 2008; 
- Instruction No. 0005/MAF for the Regulati on on Livestock Management in Lao PDR of 
2 January 1997; 
- Decree No. 85/PMO "On Livestock Management in Lao PDR" of 31 May 1993; - Regulation No.  0004/MAF "On Livestock Mana gement in Lao PDR" of 2 January 1997;  
- Technical Norms No. 0313/MAF "On livestock management in the Lao PDR" of 
21 January 2000; 
- Law No. 04/NA "On Food" of 15 May 2004; 
- National Policy No. 028/PMO "On Food  Safety" of 3 February 2009; 
- Regulation No. 518/MOH "On the Basic Principles in the Application of Sanitary and 
Technical Measures for the Food Safety  Management" of 18 March 2009; 
- Regulation No. 586/MOH "On the Control on Pr oduction, Exported-Imported Safe Food", of 
12 May 2006; 
- Provisions No. 035/FMC "On the Control of Export-Oriented and Imported Foodstuffs" of 
26 October 1991; 
- Elaborated Recommendations No. 035/FMC Rela ting to the Regulations on Quality Control 
of Export-Oriented and Imported Foodstuffs of 9 September 1991; 
- Regulation No. 105/CFD "On Food Quality Control in Domestic Distribution" of 
31 October 1991; 
- Provisions No. 048/FMC "On Quality Control of  Domestically Produced Food Products" of 
26 September 1991; 
- Resolution No. 09/PMO endorsing "The National Science and Technology Policy of 
Lao PDR up to the year 2010" of 27 November 2003;  WT/ACC/SPEC/LAO/4 
Page 68  
 
  - Decree No. 162/PM "On Border Trade Zone at Boten, Louangnamtha Province" of 
8 October 2002; 
- Decree No. 25/PM "On Dansavanh Village Border Trade Zone" of 25 March 2002; 
- Decree No. 148/PM "On Savan-Seno Special Economic Zone" of 29 September 2003; - Implementation of Rules and Regulations No . 01639/MOF "On Government Procurement of 
Goods, Construction, Repairs and Services" of 22 December 1998; 
- Law No. 08/NA "On Intellectual Property" of 24 December 2007; - Regulation No. 466/STEA-PMO "On Registra tion of Trademarks" of 7 March 2002;  
- Decree No. 06/PM "On Trademarks" of 18 January 1995; - Decree No. 01/PM "On Patent, Petty Patent and Industrial Designs" of 17 January 2002; 
- Regulation No. 322/STEA-PMO "On the Implem entation of Decree on Patent, Petty Patent 
and Industrial Designs" of 18 February 2003; 
- Regulation "On Conditions for Establishing Ba nks in the Lao PDR" of 30 November 1995; 
- Decree No. 01/NA "On Commercial Banks" of 11 March 1997; - Insurance Law No. 11/90/PSA of 29 November 1990; 
- Telecommunications Act No. 02/NA of 10 April 2001; 
- Decree No. 64/PM "On Private Education" of 14 August 1995; - Regulations No. 159/OPM "On the Management of  Hotels and Guesthouses" of 30 July 1997;  
- Regulations No. 1150/PM "On the Establis hment and Management of Tourist Service 
Operators" of 25 October 1993; 
- Regulations No. 1413/49/MCTPC "On the Esta blishment of Businesses of Transportation 
Shipping and Repair Services by the State; State Private Collectives and Private Individuals" 
of 22 June 1996; 
- Law No. 3/97/NA "On Road Transportation" of 12 April 1997; and - Decree No. 35/PDR "On the Enforcement of the Law on Road Transportation" of 
31 May 1997. 
  WT/ACC/SPEC/LAO/4 
 Page 69 
 
 
  Table 2: List of Controlled Businesses (Negative List)  
 
ISIC Code Controlled businesses 
 Agriculture, forestry and fishing 
0170 Hunting, trapping and related service activities 
0210 Silviculture and other forestry activities 
0220 Logging 
0230 Gathering of non-wood forest products 
0312 Freshwater fishing 
 Mining and quarrying 
0510 Mining of hard coal 
0520 Mining of  lignite 
0610 Extraction of crude petroleum 
0620 Extraction of natural gas 
0710 Mining of iron ores 
0721 Mining of uranium and thorium ores 
0729 Mining of other non-ferrous metal ores 
0810 Quarrying of stone, sand and clay 
0891 Mining of chemical and fertilizer minerals 
0892 Extraction of peat 
0893 Extraction of salt 
0899 Other mining and quarrying n.e.c. 
 Electricity, gas, steam and air conditioning supply 
3510 Electric power generation, transmission and distribution 
3520 Manufacture of gas; distribution of gaseous fuels through mains 
 Water supply; sewerage, waste management and remediation activities 
3600 Water collection, treatment and supply 
3700 Sewerage 
3812 Collection of hazardous waste 
3822 Treatment and disposal of hazardous waste 
 Transportation and storage 
4911 Passenger rail transport, interurban 
4912 Freight rail transport 
4930 Transport via pipeline 
5110 Passenger air transport 
5120 Freight air transport 
5310 Postal activities 
 Information and communication 
5811 Book publishing 
5813 Publishing of newspapers, journals and periodicals 
5911 Motion picture, video and television programme production activities 
5912 Motion picture, video and television programme post-production activities 
5913 Motion picture, video and television programme distribution activities 
5920 Sound recording and music publishing activities 
6010 Radio broadcasting 
6021 Television broadcasting 
6022 Leasing program via cable, satellite and other 
6110 Wired telecommunications activities 
6120 Wireless telecommunications activities 
6130 Satellite telecommunications activities 
6190 Other telecommunications activities 
 Financial and insurance 
6411 Central banking 
6419 Other monetary intermediation 
6420 Activities of holding companies WT/ACC/SPEC/LAO/4 
Page 70  
 
  ISIC Code Controlled businesses 
6430 Trusts, funds and similar financial entities 
6491 Financial leasing 
6492 Other credit granting 
6499 Other financial service activities, except insurance and pension funding activities, n.e.c. 
6511 Life insurance 
6512 Non-life insurance 
6520 Reinsurance 
6530 Pension funding 
6611 Administration of financial markets 
6612 Security and commodity contracts brokerage 
6619 Other activities auxiliary to financial service activities 
6630 Fund management activities 
 Human health and social work activities 
8610 Hospital activities 
8620 Medical and dental practice activities 
8690 Other human health activities 
 Arts, entertainment and recreation 
9200 Gambling and betting activities 
9321 Activities of amusement parks and theme parks 
  WT/ACC/SPEC/LAO/4 
 Page 71 
 
 
  Table 5:  State-Owned Enterprises  
A. Enterprises Involved in Importation and Exportation of Goods 
No. Name of SOEs Responsible 
Agency Sectors Registered Activities 
1. Lao Trade Import-
Export Company  Ministry of 
Industry and Commerce Construction and 
technical equipment Import of construction materials, 
electrical equipment and export of wood and handicraft products. 
2. Lao International 
Import-Export Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of construction materials, 
electrical equipment and export of wood 
and handicraft products. 
3. Technical 
Equipment Supply 
Enterprise Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of technical equipment including 
telecommunication equipment. 
4. Lanexang 
Development Co. Ltd Ministry of 
Industry and Commerce Construction and 
technical equipment Import of construction materials, spare 
parts, electrical eq uipment; export of 
wood and handicraft products. 
5. Construction 
Materials, Surveys 
and Analyses Co. Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of construction materials and 
technical equipment. 
6. Lao International 
Trade Service 
Company Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of technical equipment including 
various consumption goods; export of 
handicraft products. 
7. Lao State Fuel 
Company Ministry of 
Industry and 
Commerce Energy Import of gasoline,  diesel, lubricants and 
gas. 
8. Barite Exploration 
Co. Ministry of 
Energy and Mining Mining Operation ceased. 
9. Lao Cotton State 
Enterprise Lao Women's 
Union Textile Export of clothing and other cotton-made 
products. 
10. Pharmaceutical 
Factory No. 2 Ministry of 
Public Health Public health Import of chemical products and export 
of medicines. 
11. Pharmaceutical 
Factory No. 3 Ministry of 
Public Health Public health Import of chemical products and export 
of medicines. 
12. State Printing 
Enterprise  Ministry of 
Information 
and Culture General printing  Printing equipment. 
13. Agricultural 
Machinery 
Company (Tha Ngone) Ministry of 
Agriculture 
and Forestry Agriculture and 
forestry Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
14. Development of 
Agro-Forestry 
Industry Co. (DAFI) Ministry of 
Defence Agriculture and 
forestry Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
15. State Enterprise for 
Agriculture and 
Industry Development Ministry of 
Defence Agriculture, 
forestry and 
manufacturing Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
16. Bolisat Phattana 
Khet Phoudoi 
(Mountainous Area Development 
Company) Prime 
Minister's 
Office Agriculture, 
forestry and rural 
development Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
 WT/ACC/SPEC/LAO/4 
Page 72  
 
  B. Other State-Owned Enterprises 
No. Names Responsible agency Products or services 
17. Lao National Tourism Prime Mini ster's Office Tourist services 
18. Education Printing Enterpri se Ministry of Education Education printing services 
19. Education Equipment Printing  Lao Youth Union  Educ ational equipment 
20. Electricité du Laos Ministry of Energy and Mining Electricity  
21. National Lottery Co. Ministry of Finance Lottery 
22. Lao Labour Services Co. Mini stry of Labour and Social 
Welfare Employment services 
23. Banque Pour Le Commerce 
Exterieur du Laos Bank of Lao PDR Banking service 
24. Lao Development Bank Bank of Lao PDR Banking service 
25. Agricultural Promotion Bank Bank of Lao PDR Banking service 
26. Lao Water Supply Co. Ministry of Public Works and  
Transport Water supply 
27. La Poste du Laos Nationa l Authority of Post and 
Telecommunication Postal service 
28. Lao Airlines Ministry of Public Works and  
Transport Airline services 
29. Design Communication Institute National Authority of Post and 
Telecommunication Communication and design 
30. Road and Bridge Construction 
No. 8 Co. Ministry of Public Works and  
Transport Construction 
31. River Transportation Co. Ministry of Public Works and  
Transport Transportation 
32. River Construction and 
Transportation Co. Ministry of Public Works and  
Transport Construction 
33. Communication and Design Co. Na tional Authority of Post and 
Telecommunication Communication and design 
34. River survey and Design Co. Mi nistry of Public Works and  
Transport Survey and design 
35. Consultant Services Co. Ministry  of Finance Consultant services 
36. Lao Air Ministry of Public Works and  
Transport Airline service 
37. Enterprise Telecommunication du 
Lao (ETL) National Authority of Post and 
Telecommunication Telecom services 
  WT/ACC/SPEC/LAO/4 
 Page 73 
 
 
  Table 7:  Excise Tax  
No. Goods and services liable to Excise Tax Tax rate 
( in per cent) 
1. Fuel: 
- Gasoline (super) 
- Gasoline (normal) 
- Diesel 
- Plane gasoline 
- Lubricant, hydraulic oils, grease, and brake oil   
25 
24 12 
10 
5 
2. Liquor or alcoholic drinks: 
- Liquor or drinks with alcoholic content from 15 ˚ upwards 
- Liquor, wine and other drinks with alcoholic content under 15 ˚ 
- Beer  
70 
60 
50 
3. -  Mineral water, ready-made drinks, and similar drinks 
- Aerated drinks 
- Soda and energy drinks 10 
20 
30 
4. Ready-made tobacco, cigarettes in packets, and cigars 55 
5. Perfumes and cosmetics 30 
6. Playing cards and similar items , traditional rockets, fireworks 70 
7. Vehicles: 
- Vans with 15 seats and less, 
- Buses with more than 15 seats 
- Lorries 
- Motorcycles 
- Jeeps with soft cover 
- Jeeps with hard cover (with maximum of 2000 CC) 
- Jeeps with hard cover (2,001 CC to 4,000 CC) 
- Jeeps with hard cover (with engine volume of minimum 4,001 CC)  
- Cars with a maximum of 1,000 CC 
- Cars with a engine volume between 1,001 and 1,500 CC 
- Cars with engine volume between 1,501 and 3,000 CC 
- Cars with minimum engine volume of 3,001 CC  
- Tall/low pick-up trucks with two doors and a cabin 
- Tall/low pick-up trucks with four doors and a cabin  
25 
20 
10 20 
30 
65 70 
75 
60 65 
75 
90 20 
25 
8. Speed boats, motor boats for sport activities, including their motors and 
accessories  10 
9. Electrical appliances such as: air-c onditioners, satellite TV signal receivers, 
audio-video players, cameras, audio-vi deo recorders, musical instruments, 
including components and accessories 15 
10. Freezers, water heaters, wash ing machines, vacuum cleaners 10 
11. Importation, sales and services of billiard/snooker tables, football game tables, 
and other game-playing machines 20 
12. Entertainment services: night clubs, discotheques, karaoke 25 
13. Mobile phone, cable TV, internet services 10 
14. Lottery services 10 
15. Casino activities 15 
  
  WT/ACC/SPEC/LAO/4 
Page 74 Table 8: Import Prohibitions  
No. HS Code Description Rationale Legislation Responsible Authorities 
1. 3601-3603 
3604.10.10 8710 
9301 
9302 9304 
9305 
9306 9307 Guns, ammunition and all types of 
weapons (with th e exception of 
explosive substances for industrial use) 
and warfare vehicles. To protect public order 
and national security. - Article 5 of the Criminal Law. 
- Prime Minister's Decision No. 
39/PM to Regulate the 
Management and the Use of 
Explosive Substances in Lao PDR, dated 12 July 2001. Ministry of National Defence (General 
Department of Army) 
2.  1207.91.00 
1211.40.00 
1211.90.11 1211.90.12 
1211.90.93 
1302.11.00 2939.11.00 
2939.19.00 
2939.91.10 Poppy seeds, poppy, cannabis, opium, 
cocaine, and their derivatives. To protect public order 
and national security. - Article 146 of the Criminal Law. 
- Law "On Narcotic Drugs". 
- Decree No. 076/PM "On the 
Implementation of Law on 
Narcotic Drugs", dated 
20 February 2009. - Ministry of Public Security (Anti-
Narcotic Drugs Police) 
- Prime Minister's Office (Agency of 
Narcotic Drugs Inspection and 
Control). 
3.  Detrimental fishing tools. To protect environment 
and water resources. Law "On Fisheries". Ministry of Agriculture and Forestry 
(Department of Fisheries) 
4.  Used diesel engines. To protect human health 
and the environment.  Ministry of Industry and Commerce 
(Department of Imports and Exports) 
5.  Refrigerators, water-cooling fridges or 
freezers containing Chlorofluorocarbons 
(CFC) substances. To protect human health 
and environment.  Ministry of Industry and Commerce 
(Department of Imports and Exports) 
6.  Used products in the following 
categories: - Garments, shoes, clothes; 
- Electronic goods; 
- Electrical appliances; - Interior decoration items; ceramics 
and items which are cloaked by 
metal or made of glass, plastic, rubber, liquid and other 
substances. To protect human health 
and environment.  Ministry of Industry and Commerce 
(Department of Imports and Exports) 
7.  Used medical products and equipment. To protect human health 
and environment. Policy "On Medical Equipment 
Management", 2003. Ministry of Public Health (Department 
of Food and Drug, and the Department of Clinical and Treatment)  
   WT/ACC/SPEC/LAO/4
 Page 75No. HS Code Description Rationale Legislation Responsible Authorities 
8.  Highly toxic chemicals.  To protect human health 
and environment.  Ministry of Industry and Commerce 
(Department of Industry) 
Note : 
- List based on Notification No. 2151/MOIC.DIMEX of 30 October 2009. 
- Relevant authorities may issue instructions on the importation of controlled goods under their own responsibility (see below Table 9). 
  
  WT/ACC/SPEC/LAO/4 
Page 76 Table 9:  Goods Subject to Non-Automatic Import Licensing  
No. HS Code Description Rationale Legislation Responsible Authorities 
1. 1006.10 
1006.20 1006.30 
1006.40 Rice in the husk; milled but unpolished 
rice; broken rice; semi-milled rice or wholly milled rice - whether not or 
polished or glazed. To control 
smuggling/illegal trade. - Decree No. 205/PM "On Import 
and Export Management", dated 11 October 2001. 
- Notification No. 1691/PMO "On 
Import and Export Documentation Procedures and 
Internal Transportation of 
Goods", dated 7 October 2004. Ministry of Industry and Commerce 
(Department of Imports and Exports). 
2. 2523 
3816 Cement, mortar, concrete. To control smuggling/ 
illegal trade. - Decree No. 205/PM "On Import 
and Export Management", dated 
11 October 2001. 
- Decree No.  188/PM. - Notification No. 1691/PMO 
"On Import and Export 
Documentation Procedures and Internal Transportation of 
Goods", dated 7 October 2004. Ministry of Industry and Commerce 
(Department of Imports and Exports). 
3. 2710 Fuel. To control smuggling, 
fraud, deception and 
forgery. - Decree No. 207/PM "On Price 
Management", dated 
11 October 2001. 
- Decision No. 1785/MOIC.ITD 
"On Management of the Fuel 
Importing Businesses and 
Wholesale Services", dated 7 September 2009. Ministry of Industry and Commerce 
(Department of Imports and Exports). 
4. 2711 Gas. To control smuggling. - Decree No. 205/PM "On Imports 
and Exports Management", 
dated 11 October 2001. 
- Notification No. 1691/PMO 
"On Import and Export 
Documentation Procedures and Internal Transportation of 
Goods", dated 7 October 2004. Ministry of Industry and Commerce 
(Department of Imports and Exports).  
   WT/ACC/SPEC/LAO/4
 Page 77No. HS Code Description Rationale Legislation Responsible Authorities 
5. 3603 Detonator: 
- Plain detonator; 
- Electric detonator; - Non-electrical detonator; 
- Nonel tube; 
- Detonating line; - Fuse for explosive device. To protect human 
health, life, and 
environment. - Notification No. 121 
"On Management and Inspection 
of Explosive Materials for Civilian Activities in Lao PDR", 
dated 29 June 2005. 
- Prime Minister's Decision 
No. 39/PM "To Regulate the 
Management and Use of 
Explosive Substances in Lao PDR", dated 12 July 2001. 
- Decision No. 88/MND 
"On Authorization to Import Explosive Items", dated 
12 January 2005. Ministry of National Defense 
(Department of National Defense 
Industry). 
6. 3915 Waste; scrap items; paring and scrap of 
plastics. To protect environment.  Ministry of Industry and Commerce 
(Department of Industry). 
7. 4004.00 
4012.11 
4012.12 
4012.19.90 
4012.20.10 
4012.20.90 Retreaded pneumatic used tyre 
including broken pneumatic tyre wasted 
or whether or not parings. To protect the 
environment.  Ministry of Industry and Commerce 
(Department of Imports and Exports). 
8. 4901-4906 
4909-4911 Publications (books, electronic 
publications or other types of 
publication for distribution). To protect public 
morals. Law No. 05/NA "On Publications", 
dated 9 December 2008. Ministry of Information and Culture 
(Department of Publications). 
9. 7108.12.10 Gold bar (only gold bars that are 
internationally acceptable as a means/medium of payment). Financial stability. - Presidential Decree Law 
No. 01/President "On the Management of Foreign 
Exchange and Precious Metals",  
dated 17 March 2007.  
- Regulation No. 01/BOL 
"On Establishment and 
Administration of Enterprises entitled to Import and Export 
Precious Metals", dated 
15 May 2007. Bank of Lao PDR (Department of 
Monetary Policy).  
  WT/ACC/SPEC/LAO/4 
Page 78 No. HS Code Description Rationale Legislation Responsible Authorities 
10. 7213-7229 Bars, rods and other forms of steel. To control smuggling. - Decree No. 205/PM "On Imports 
and Exports Management", 
dated 11 October 2001. 
- Notification No. 1691/PMO 
"On Import and Export 
Documentation Procedures and Internal Transportation of 
Goods", dated 7 October 2004. Ministry of Industry and Commerce 
(Department of Imports and Exports). 
11. 3215.19.00 
4802.69.20 4802.69.90 
8443.19.10 
8443.29.10 8443.30.10 
8443.40.10 
8443.59.90 Banknote printing machine; banknote 
paper and inks for banknote printing, and melting machines for making coins. Government 
procurement and financial stability.  Bank of Lao PDR (Department of 
Monetary Policy). 
12. 8525.10 
8525.20.92 
8526.10 
8526.92.00 Telecommunication devices, radio-
wave receiver and transmitter devices 
capable of receiving radio frequency 
range from 3 KHz to 300 GHz and 
capable of transmitting radio frequency 
from 50 MW or more; Radar, long-distance radio wave controller and 
command devices. National security. Law "On Telecommunication". Post and Telecommunication Agency 
(Department of Telecommunication and 
Internet). 
13. 8467.81 
8467.91 8508.20 
8508.90 Wood cutting machines, chain saws 
including parts of chain saws. To control illegal 
logging and natural resource protection. Article 101, Law "On Forestry". Ministry of Agriculture and Forestry 
(Department of Forestry). 
14. 8702-8705 Used cars. To protect environment. Prime Minister's Decision No. 14/PM 
"On Mechanism for Importation of Auto Vehicles and Spare Parts for 
Assembly in Factory", dated 
28 February 2003. Ministry of Industry and Commerce 
(Department of Imports and Exports). 
15. 9303.20 
9303.30 Guns and ammunition used for  sport . National s ecurity.  Ministry of Na tional Defense (General 
Department of Army). 
16. 9504.30 
9504.90 Gambling machines. To protect public 
morals. Regulation No. 664/MIC 
"On Management and Inspection of 
Games in all Forms in Lao PDR", dated 23 September 2003  Ministry of Information and Culture 
(Department of Mass Culture).  
   WT/ACC/SPEC/LAO/4
 Page 79No. HS Code Description Rationale Legislation Responsible Authorities 
17.  - Explosives (for non military 
purposes) 
- Ammonium Nitrate (NH 4NO 3) To protect human 
health, life and 
environment. - Notification No. 121 
"On Management and Inspection 
of Explosive Materials for Civilian Activities in Lao PDR", 
dated 29 June 2005. 
- Prime Minister's Decision 
No. 39/PM "To Regulate the 
Management and the Use of 
Explosive Substances in Lao PDR", dated 12 July 2001. 
- Decision No. 88/MOFA 
"On Authorization to Import Explosive Items", dated 
12 January 2005. Ministry of National Defense 
(Department of National Defense 
Industry). 
18.  Logs and processed woods from the 
natural forest. To prevent illegal 
logging along the borders. - CITES (Lao PDR is a 
contracting party). 
- Prime Minister's Order 
No. 17/PM "To strengthen the 
protection and conservation of 
forests and coordination in 
managing forest and wood businesses", dated 
22 September 2008. - Ministry of Agriculture and 
Forestry (Department of Forestry). 
- Ministry of Industry and 
Commerce (Department of Imports 
and Exports). 
Note : 
- List based on Notification No. 2151/MOIC.DIMEX of 30 October 2009. 
- Relevant authorities may issue instructions on the importation of controlled goods under their own responsibility  (see below ).  
  WT/ACC/SPEC/LAO/4 
Page 80 Controlled Products pursuant to Ministry of H ealth Regulation No. 08/MOH of 4 January 2005  
 
I. Substances to produce drugs that can be imported : 
 
 Codeine phosphate; Fentanyl citrate; Morphine hydrochloride;  Opium (raw, powder or tincture); Pethidine hydrochioride. 
 II. List of substances and drugs affecting the brain
: 
 
 Barbital Sodium; Bromazepam; Chlordiazepoxide hydrochloride; Clonazepam; Clorazepate; Diazepam ; Flunitrazepam; Midazolam; Mepr obamate; 
Nitrazepam; Pentazocine hydrochl oride; Phenobarbital sodium. 
 
III. Chemical substances:  
 
 Strictly Controlled List (Schedule I):  Acetic Anhydride; N-acetylanthranilic Acid; Ergome trine; Ephedrine; Isosafrole; Methylene Dioxyphenyl; 
Propanone; Norephedrine; Piper onal; Pseudoephedrine; Safrone. 
  Control List (Schedule II)
: Acetone; Anthranilic Acid; Methyl Ethyl Ketone (MEK); Ba rium Sulphat; Benzaldehyde; Benzal Cyanide; Diethylamine; 
Phenyl; Propanone; Ethyl Ether; Hydrochloric Acid; Methylamine; N itroethane; Phenyl Acetic Acid; Piperidine; Potassium Permanga nate; Pyridine; 
Sulphuric Acid; Toluene. 
  Watch List (Schedule III)
: Acetic acid, Glacial; Caffeine; Methyl Iso Butyl Ket one (MIBK); Phosphorous Trichloride; Thionyl Chloride. 
  
   WT/ACC/SPEC/LAO/4
 Page 81Table 11: Export Prohibitions  
No. HS Code Description Rationale Legislation Responsible Authorities 
1. 1207.91.00 
1211.40.00 1211.90.11 
1211.90.12 
1211.90.93 1302.11.00 
2939.11.00 
2939.19.00 2939.91.10 Poppy seeds, poppy, cannabis, opium, 
cocaine, and their substances. To protect public order 
and national security. - Article 146 of the Criminal Law. 
- Law "On Narcotic Drugs". - Decree No. 076/PM "On the 
Implementation of Law on 
Narcotic Drugs", dated 20 February 2009. - Ministry of Public Security (Anti-
Narcotic Drugs Police). 
- Prime Minister's Office (Agency of 
Narcotic Drugs Inspection and 
Control). 
2. 3601-3603 
3604.10.10 
8710 9301 
9302 
9304 9305 
9306 
9307 Guns, ammunition and all types of 
weapons (with th e exception of 
explosive substances for industrial purposes) and warfare vehicles. To protect public order 
and national security. - Article 5 of the Criminal Law. 
- Prime Minister's Decision 
No. 39/PM "To Regulate the Management and the Use of 
Explosive Substances in Lao 
PDR", dated 12 July 2001. Ministry of National Defence (General 
Department of Army). 
3.  Logs and processed wood from the 
natural forest. To prevent illegal 
logging along the 
borders. - CITES (Lao PDR is a 
contracting party). 
- Prime Minister's Instruction 
No. 17/PM "To Strengthen the 
Protection and Conservation of 
Forests and Coordination in Managing Forest and Wood 
Businesses", dated 
22 September 2008. - Ministry of Agriculture and 
Forestry (Department of Forestry). 
- Ministry of Industry and 
Commerce (Department of Imports 
and Exports). 
4.  Antique items, including Buddha 
images; Hindu God images and other 
religious respectful items; historical, 
archeological and cultural invaluable items 50 years old or more. To preserve the cultural 
heritages of the nation. - Article 15 of the Customs Law. 
- Law "On National Heritage". 
- Article 2 of the Presidential 
Decree "On Conservation of the Nation's Cultural, Historical and 
Natural Heritages". Ministry of Information and Culture 
(Department of Heritage). 
  
  WT/ACC/SPEC/LAO/4 
Page 82 Table 12:  Goods Subject to Export Licensing  
No. HS Code Description Rationale Legislation Responsible Authorities 
1. 1006.10 
1006.20 1006.30 
1006.40 Rice in the husk; milled but unpolished 
rice; broken rice; semi-milled rice or wholly milled rice - whether or not 
polished or glazed. To control smuggling. - Decree No. 205/PM "On Import 
and Export Management", dated 11 October 2001. 
- Notification No. 1691/PMO 
"On Import and Export Documentation Procedures and 
Internal Transportation of 
Goods", dated 7 October 2004. Ministry of Industry and Commerce 
(Department of Imports and Exports). 
2. 1006.10.10 Rice seeds. To preserve Lao 
traditional rice seed and 
control illegal exports. - International Plant Protection 
Convention (IPPC). 
- Regulation No. 719/MAF 
"On the Management of   the Use of Seeds and Plants for 
Cultivation in Lao PDR", dated 
13  December 1997. Ministry of Agriculture and Forestry 
(Department of Agriculture). 
3. 3603 Detonator: 
- Plain detonator; 
- Electrical detonator; 
- Non-electric detonator; 
- Nonel tube; 
- Detonating line; - Fuse for explosive devices. To protect human health 
and environment. - Notification No. 121 
"On Management and Inspection 
of Explosive Materials for 
Civilian Activities in Lao PDR", 
dated 29 June 2005. 
-  Prime Minister's Decision 
No. 39/PM "To Regulate the 
Management and the Use of 
Explosive Substances in Lao PDR", dated 12 July 2001. 
-  Decision No. 88/MND 
"On Authorization to Import Explosive Items", dated 
12 January 2005. Ministry of National Defence 
(Department of National Defence 
Industry).  
   WT/ACC/SPEC/LAO/4
 Page 83No. HS Code Description Rationale Legislation Responsible Authorities 
4. 3602 Explosive items and explosive 
substances (Ammonium 
Nitrate/NH 4NO 3). To protect human 
health, life and 
environment. -  Notification No. 121 
"On Management and Inspection 
of Explosive Materials for Civilian Activities in Lao PDR", 
dated 29 June 2005. 
- Prime Minister's Decision 
No. 39/PM "To Regulate the 
Management and Use of 
Explosive Substances in Lao PDR", dated 12 July 2001. 
- Decision No. 88/MND 
"On Authorization to Import Explosive Items", dated 
12 January 2005. Ministry of National Defence 
(Department of National Defence 
Industry). 
5.  Finished wood products. To control illegal 
exportation. - Prime Minister's Order 
No. 17/PM to Strengthen the Protection and Conservation of 
Forests and Coordination in 
Managing Forest and Wood 
Businesses, dated 
22 September 2008. 
- Regulation No. 1415/MOIC.DI 
"On Forms and Sizes of Wood 
Products, dated 22 August 2008. Ministry of Industry and Commerce 
(Provincial Offices and Vientiane Capital Office of Industry and 
Commerce). 
6. 7108.12.10 Gold bar. Financial stability. - Presidential Decree 
No. 01/President "On the 
Management of Foreign 
Exchange and Precious Metals", dated 17 March 2007. 
- Regulation No. 01/BOL 
"On Establishment and Administration of Enterprises 
Entitled to Import and Export 
Precious Metals", dated 15 May 2007. Bank of Lao PDR (Department of 
Monetary Policy). 
7.  Minerals and mineral products. To control illegal 
exportation. Law No. 04/97/NA "On Mining", 
dated 12 April 1997. Ministry of Energy and Mining 
(Department of Mining).  
  WT/ACC/SPEC/LAO/4 
Page 84 No. HS Code Description Rationale Legislation Responsible Authorities 
8.  Logs and processed wood harvested 
from plantation. To control illegal 
exportation. Prime Minister's Instruction 
No. 17/PM to Strengthen the 
Protection and Conservation of Forests and Coordination in 
Managing Forest and Wood 
Businesses, dated 22 September 2008. - Ministry of Agriculture and 
Forestry (Department of Forestry). 
- Ministry of Industry and 
Commerce (Department of Imports 
and Exports). 
9.  Bat manure. To control illegal 
exports  - Article 29 of the Law 
No. 01/98NA "On Agriculture", 
dated 10 October 98. 
- Ministerial Instruction 
No. 0613/MAF.06 "On the 
Management and the Use of Bat 
Manure in Lao PDR", dated 8 July 2005. Ministry of Agriculture and Forestry 
(Department of Agriculture). 
 
 
  
   WT/ACC/SPEC/LAO/4
 Page 85Table 15:  Action Plan for the Implementation of the TRIPS Agreement  
Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
General Provisions: 
Participation in Intellectual Property 
Conventions Participation in: 
 
- World Intellectual Property Organization 
- Paris Convention - Patent Cooperation Treaty 
- Berne Convention 
- Currently NAST is seeking approval from the 
Ministry of Foreign Affairs.   
- Rome Convention 
- Washington Treaty on Intellectual Property in 
Respect of Integrated Circuits  
 
Since 1995 
Since 1998 Since 2006 
Expected to join by the 
end of 2011 
 
Deferred 
Deferred  
 
 
  
TA is required for creating awareness on 
the Berne Convention.  
(Deferred due to technical capacity 
limitations.  Priority to be given to drafting Decree and Regulations to implement the 
Intellectual Property Law). 
Part II, Section 1: 
Copyrights and related rights Intellectual Property Law 
  
 
Decree Implementing the In tellectual Property Law 
 
 Regulation on Copyright and Related Rights 
 
 Training of personnel involved in copyrights protection 
such as customs officials, pol ice, judges, prosecutors and 
lawyers  
Instrument for Ratification of Berne Convention Adopted in 2007 
  
 
To be adopted by 2011 
 
 
To be adopted by 2012 
 
 
Ongoing activities 
 
  
To be prepared by 2010 Based on WIPO model law.  Technical 
assistance provided by WIPO and EU (ECAP II Project 2005-2007). 
 
TA provided by WIPO and EU (ECAP III 
Project). 
 TA provided by WIPO and EU (ECAP III 
Project). 
 TA provided by WIPO and EU (ECAP III 
Project). 
  
TA is required for creating awareness on 
the Berne Convention.  
  WT/ACC/SPEC/LAO/4 
Page 86 Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part II, Section 2: 
Trademarks Decree on Trademarks 
 Regulation on Trademarks Registration  
 
Intellectual Property Law  
 
Decree Implementing the In tellectual Property Law 
 
 
Training of personnel involved in trademarks protection such as customs officials, pol ice, judges, prosecutors and 
lawyers January 1995 
 
March 2002 
 
Adopted in 2007 
 
 
To be adopted by 2011 
 
 
Ongoing activities In force. 
 In force. 
 
TA provided by WIPO and EU (ECAP II Project 2005-2007). 
 
TA provided by WIPO and EU (ECAP III Project). 
 
TA provided by WIPO and EU (ECAP III Project). 
Part II, Section 3: Geographical indications Intellectual Property Law 
  
Decree Implementing the In tellectual Property Law 
 
 
Training of personnel involved in protection of geographical indications such as  customs officials, police, 
judges, prosecutors and lawyers  Adopted in 2007 
  
To be adopted by 2011 
 
 
Ongoing activities TA provided by WIPO and EU (ECAP II 
Project 2005-2007).  
TA provided by WIPO and EU (ECAP III 
Project). 
 
TA provided by WIPO and EU (ECAP III Project). 
Part II, Section 4: Industrial designs Decree on Patents, Petty Patents (Utility Models) and 
Industrial Designs  
Regulation on the Implementation of Decree on Patents, 
Petty Patents and Industrial Designs  
Intellectual Property Law 
  
Decree Implementing the In tellectual Property Law 
  
Training of officials involved in enforcement such as 
customs officials, police, judges, prosecutors and lawyers January 2002 
  
February 2003 
  
Adopted in 2007 
  
To be adopted by 2011 
  
Ongoing activities In force. 
  
In force. 
  
TA provided by WIPO and EU (ECAP II 
Project 2005-2007).  
TA provided by WIPO and EU (ECAP III 
Project).  
TA provided by WIPO and EU (ECAP III 
Project).  
   WT/ACC/SPEC/LAO/4
 Page 87Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part II, Section 5: 
Patents Decree on Patents, Petty Patents (Utility Models) and 
Industrial Designs  
Regulation on the Implementation of Decree on Patents, 
Petty Patents and Industrial Designs  
Intellectual Property Law 
  
Decree Implementing the In tellectual Property Law 
  
Training of officials involved in enforcement such as 
customs officials, police, judges, prosecutors and lawyers January 2002 
  
February 2003 
  
Adopted in 2007 
  
To be adopted by 2011 
  
Ongoing activities In force. 
  
In force. 
  
TA provided by WIPO and EU (ECAP II 
Project 2005-2007).  
TA provided by WIPO and EU (ECAP III 
Project).  
TA provided by WIPO and EU (ECAP III 
Project). 
Part II, Section 6: Layout-designs (Topographies) of 
integrated circuit Intellectual Property Law 
 
 
Decree Implementing the In tellectual Property Law 
 
 Training of officials involved in enforcement such as 
customs officials, police, judges, prosecutors and lawyers Adopted in 2007 
 
 
To be adopted by 2011 
 
 
Ongoing activities TA provided by WIPO and EU (ECAP II 
Project 2005-2007). 
 
TA provided by WIPO and EU (ECAP III 
Project). 
 TA provided by WIPO and EU (ECAP III 
Project). 
Part II, Section 7: 
Undisclosed information Decree on Trade Competition 
 Intellectual Property Law 
 
 Decree Implementing the In tellectual Property Law 
 
 Training of officials involved in enforcement such as 
customs officials, police, judges, prosecutors and lawyers April 2004 
 
Adopted in 2007 
 
 
To be adopted by 2011 
 
 
Ongoing activities In force. 
 TA provided by WIPO and EU (ECAP II 
Project 2005-2007). 
 TA provided by WIPO and EU (ECAP III 
Project). 
 TA provided by WIPO and EU (ECAP III 
Project). 
Part II, Section 8: 
Control of anti-competitive practices in contractual licence Decree on Trade Competition 
 Intellectual Property Law 
 
 Decrees Implementing the In tellectual Property Law April 2004 
 
Adopted in 2007 
 
 
To be adopted by 2011 In force. 
 TA provided by WIPO and EU (ECAP II 
Project 2005-2007). 
 TA provided by WIPO and EU (ECAP III 
Project).  
  WT/ACC/SPEC/LAO/4 
Page 88 Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part III, Section 2: 
Civil and administrative procedures and remedies Decree on Trademarks 
 Regulation on Trademarks Registration  
 
Decree on Patents, Petty Pa tents and Industrial Designs 
 
Regulation on the Implementation of Decree on Patents, 
Petty Patents and Industrial Designs  
Constitution of Lao PDR (Amended) 
 Law on the People's Courts 
 
Civil Procedure Law (Amended)  
Judicial Enforcement Law 
 Penal Code Law (Amended) 
 
Intellectual Property Law 
 
 Decrees Implementing the In tellectual Property Law 
 
 Establishment of copyright and related rights information 
centre under Copyright Division 
 Establishment of geographical indications information 
centre under Industrial Property Division January 1995 
 
March 2002 
 
January 2002 
 
February 2003 
  
May  2003 
 
October 2003 
 
May 2004 
 
May 2004 
 
November 2005 
 
Adopted in 2007 
 
 
To be adopted by 2011 
 
 
Adopted in 2009 
 
 
To be adopted by 2009 In force. 
 In force. 
 
In force.  
In force. 
  
In force. 
 In force. 
 
In force.  
In force. 
 In force. 
 
TA provided by WIPO and EU (ECAP II 
Project 2005-2007). 
 TA provided by WIPO and EU (ECAP III 
Project). 
 Completed. 
 
 TA provided by WIPO and EU (ECAP III 
Project).  
   WT/ACC/SPEC/LAO/4
 Page 89Agreement on Trade Related Aspects 
of Intellectual Property Rights Laws/Actions Implementation 
Timeframe Remarks 
Part III, Section 4: 
Special requirements related to border measures Customs Law 
 Decree Implementing Customs Law 
 
Intellectual Property Law  
 
Decrees Implementing the In tellectual Property Law 
 
 
Training of officials involved in enforcement such as customs officials December 2005 
 
Adopted in 2007 
 
Adopted in 2007 
 
 
To be adopted by 2011 
 
 
Ongoing activities In force. 
 In force. 
 
TA provided by WIPO and EU (ECAP II Project 2005-2007). 
 
TA provided by WIPO and EU (ECAP III Project). 
 
TA provided by WIPO and EU (ECAP III Project). 
Part III, Section 5: 
Criminal procedures Criminal Procedure Law  
 
Penal Code Law (Amended)  
Intellectual Property Law 
 
 
Decrees Implementing the In tellectual Property Law May 2004  
 
November 2005 
 
Adopted in 2007 
 
 
To be adopted by 2011 In force. 
 
In force.  
TA provided by WIPO and EU (ECAP II 
Project 2005-2007). 
 
TA provided by WIPO and EU (ECAP III Project). 
Others Increased computerization of NAST 
 
 Increased computerization of enforcement agencies 
 
 Practical training in copy right piracy and trademark 
counterfeiting 
 Developing rules, regulations and manuals 
 
 Enhancing public awareness on the protection of 
intellectual property rights To be implemented by 
2010 
 
To be implemented by 
2011 
 
Ongoing activities 
 
 
To be implemented by 
2012 
 
Ongoing activities TA is needed. 
 
 TA is needed. 
 
 TA is needed. 
 
 TA provided by WIPO and EU (ECAP III 
Project). 
 TA is needed. 
 
 WT/ACC/SPEC/LAO/4 
Page 90  
 
  Table 16:  Fees for Intellectual Property Registration
 
Action Fee (US$ per mark or item) 
TRADEMARKS 
Trademark registration or trademark renewal 80 
- Each class (fee per class) 5 
Transmission 20 
Consultation for the registration 5 
Search of Trademark 10 
Modification of items of the application 10 
Publication 20 
Application per form 2 
PATENTS 
Official fees:  
 
1. Official fee for granted patent  
 
30 
Regular services fees:  
 
1. Application form for registration of invention 
2. Consultation on invention  
 
20 
10 
Irregular services fees : 
 
1. Request against registration 
2. Amendment of application for registration 3. Assignment or licensing of patent rights 
4. Duplicate of patent  
 
20 
10 40 
10 (per copy) 
Fee charge of each search report relies on the calculation of relevant 
foreign examination body or international organization.  
In order to maintain the patent, an an nual official fee and service fee shall 
be paid by the owner of invention are as follows:  
- 5th year: Official fee 
   Services fee - 6th year: Official fee 
   Services fee 
- 7th year: Official fee    Services fee 
- 8th year: Official fee 
   Services fee 
- 9th year: Official fee 
   Services fee - 10th year: Official fee 
   Services fee 
- 11th year: Official fee    Services fee 
- 12th year: Official fee 
   Services fee - 13th year: Official fee 
   Services fee 
- 14th year: Official fee    Services fee 
- 15th year: Official fee 
   Service fee - 16th year: Official fee 
   Services fee 
- 17th year: Official fee  
  
 
  
30 
20 40 
20 
50 20 
60 
40 
80 
60 
100 
80 
140 100 
180 
120 230 
150 
280 180 
330 
210 390 
250 
450  WT/ACC/SPEC/LAO/4 
 Page 91 
 
 
  Action Fee (US$ per mark or item) 
   Services fee 
- 18th year: Official fee    Services fee 
- 19th year: Official fee 
   Services fee 
- 20th year: Official fee 
   Services fee 300 
510 350 
570 
400 
650 
450 
PETTY PATENTS 
Official fees : 
 
1.  Official fee for granted petty patent      
 
30 
Regular services fees : 
 1.  Application form for registration of device 
2.  Consultation on device  
 
10 
10 
Irregular services fees : 
 1. Request against registration   
2.  Amendment of application for registration   
3.  Assignment or licensing of petty patent rights      4.  Duplicate of petty patent   
 
10 
10 
40 
10 (per copy) 
In order to maintain the petty patent, an annual official fee and service 
fee shall be paid by the owner of device are as follows: 
 - 2nd year: Official fee 
   Services fee 
- 3rd year: Official fee 
   Services fee 
- 4th year: Official fee    Services fee 
- 5th year: Official fee 
   Services fee - 6th year Official fee 
   Services fee 
- 7th year: Official fee    Services fee  
 
 
10 
15 
20 
15 
30 20 
40 
25 50 
30 
70 35 
INDUSTRIAL DESIGNS 
Official fees : 
 
1. Official fee for certifi cate of industrial design  
 
20 
Regular services fees : 
 
1. Application form for registration of industrial design  
2. Consultation on industrial design  
 
10 
10 
Irregular services fees : 
 
1. Request against registration 
2. Amendment of application for registration 
3. Assignment or licensing of rights of industrial design 
4. Duplicate of industrial design  
 
10 
10 
40 
10 (per copy) 
In order to maintain the industrial  design, an annual official fee and 
service fee shall be paid by the owner are as follows: 
 
 2nd year: Official fee    Services fee 
 3rd year: Official fee  
 
 
10 
5 
15 WT/ACC/SPEC/LAO/4 
Page 92  
 
  Action Fee (US$ per mark or item) 
   Services fee 
- 4th year: Official fee    Services fee 
- 5th year: Official fee 
   Services fee 
- 6
th year - 15th year: 
   Official fee    Services fee 8 
20 11 
25 
11 
 
30 20 
 
Remark:  
In addition to the official fee for registration of inventio n, device or industrial design, the Registry Unit is asked 
to gather a contribution fund from the owner of patent, petty patent and industrial design for publication of the 
result of the patent registration US$40, device registration US$30, and industrial design registration US$30 per item. 
 
__________