WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/SPEC/LAO/5 
16 February 2012 
 (12-0930) 
Working Party on the 
Accession of the Lao PDR  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF THE LAO PDR TO THE 
WORLD TRADE ORGANIZATION 
  WT/ACC/SPEC/LAO/5 
 Page i 
 
 
  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 
-  Competitio n Policy ............................................................................................................ ...... 14 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES .................................... 14  
-  Powers of Executive, Legislative and Judicial Branches of Government .......................... 14  
-  Authority of Sub-Central Governments ............................................................................... 17  
IV.  POLICIES AFFECTING TRADE IN GOODS ................................................................... 18  
-  Trading Rights ................................................................................................................ ........ 18 
A.  IMPORT REGULATIONS .................................................................................................... 21  
-  Ordinary customs duties ....................................................................................................... . 21 
-  Other duties and charges ...................................................................................................... .. 21 
-  Tariff rate quotas, tariff exemptions ..................................................................................... 22  
-  Fees and charges for services rendered ................................................................................. 22  
-  Application of internal  taxes to imports ............................................................................... 23  
-  Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ....................................................................................................................... .............. 25  
-  Customs valuation ............................................................................................................. ...... 27 
-  Rules of origin ............................................................................................................... .......... 30 
-  Other customs formalities ..................................................................................................... . 31 
-  Pre-shipment inspection ....................................................................................................... .. 31 
-  Anti-dumping, countervailing duties, safeguard regimes ................................................... 32  
B.  EXPORT REGULATIONS ................................................................................................... 33  
-  Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports .............................................................................................................. .......... 33 
-  Export restri ctions ........................................................................................................... ....... 34 
-  Export subsidies .............................................................................................................. ........ 35 
C.  INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ......................... 36  
-  Industrial policy, including subsidies .................................................................................... 36  
-  Technical barriers to trade, standards and certification ..................................................... 38  
-  Sanitary and phytosanitary measures ................................................................................... 45  
-  Trade-related investment measures ...................................................................................... 57  
-  State-tradin g entities ........................................................................................................ ....... 58 
-  Free zones, special economic areas ........................................................................................ 59  
-  Government procurement ...................................................................................................... 6 1 WT/ACC/SPEC/LAO/5 
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  -  Transit ....................................................................................................................... ............... 62  
-  Agricultural policies.......................................................................................................... ...... 62 
(a)  Imports ....................................................................................................................... .............. 62  
(b)  Exports ....................................................................................................................... .............. 63  
(c)  Internal policies ............................................................................................................. .......... 63 
-  Trade in ci vil aircraft ....................................................................................................... ....... 64 
-  Textiles regime ............................................................................................................... ......... 64 
V.  TRADE-RELATED INTELLECTUAL  PROPERTY REGIME ....................................... 64  
-  GENERAL ....................................................................................................................... ........ 64 
-  Industrial property protection ............................................................................................... 64 
-  Responsible agencies for policy formulation and implementation ..................................... 65  
-  Participation in international intellectual property agreements ........................................ 66  
-  Application of national and MFN treatment to foreign nationals ...................................... 67  
-  Fees and taxes ................................................................................................................ .......... 67 
-  SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ........................................................................... 67  
-  Copyright and related rights ..................................................................................................  67 
-  Trademarks, including service marks ................................................................................... 70  
-  Geographical indications, including appellations of origin ................................................. 72  
-  Industrial designs ............................................................................................................ ........ 73 
-  Patents ....................................................................................................................... ............... 74  
-  Plant variety protection ...................................................................................................... .... 75 
-  Layout designs of integrated circuits .................................................................................... 76  
-  Requirements on undisclosed information, in cluding trade secrets and test data ............ 76  
-  MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS ........................................................................................................................ ........... 76  
-  ENFORCEMENT ...................................................................................................................  77 
-  Civil judicial procedures and remedies ................................................................................. 77  
-  Provisional measures .......................................................................................................... .... 78 
-  Administrative procedures and remedies ............................................................................. 78  
-  Special border measures ....................................................................................................... .. 79 
-  Criminal procedures ........................................................................................................... .... 80 
VI.  POLICIES AFFECTING TRADE IN SERVICES .............................................................. 80  
VII. TRANSPARENCY ................................................................................................................. 83 
-  Publication of information on trade ...................................................................................... 83  
-  Notifications ................................................................................................................. ............ 84  
VIII. TRADE AGREEMENTS ....................................................................................................... 84  
CONCLUSIONS ................................................................................................................... ............... 85  
ANNEX ......................................................................................................................... ........................ 87   WT/ACC/SPEC/LAO/5 
 Page 1 
 
 
  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.[11].   
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); on 14 July  2009, 24 September 2010, and 29 June 2011under 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 Revisions 1, 2 
and 3, WT/ACC/LAO/7 and Revisions 1, WT/ACC/L AO/8, WT/ACC/LAO/9 and Revisions 1, 2, 3, 
4, 5 and 6, WT/ACC/LAO/11, WT/ACC/LAO/12 and Revisions 1, 2, 3 and 4, WT/ACC/LAO/13 and Revisions 1, 2, 3, 4 and 5, WT/ACC/LAO/14 and Revisions 1, 2, 3, 4 and 5, WT/ACC/LAO/15 and 
Revisions 1, 2, 3, 4 and 5, WT/ACC/LAO/16, WT/ACC/LAO/17, WT/ACC/LAO/18, 
WT/ACC/LAO/19, WT/ACC/LAO/20, WT/ACC/LAO/24, WT/ACC/LAO/25, [...]), 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 transform 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 WT/ACC/SPEC/LAO/5 
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  these challenges, his Government remained committed to economic integration as the foundation for 
long-term socio-economic development.  In this  context, WTO Membersh ip 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 u ndertaken, some Members noted that further work 
was needed to achieve compliance with WTO rules and disciplines.  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/5 
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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 7.6 per cent in 2008 due 
to price hikes on fuel and food, before dropping to 0.03 per cent in 2009.  It rose again to 5.9 per cent 
in 2010.   
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.  
The short-term interest rate was r eadjusted from 4 to 5 per cent in 2010   
10. The banking sector in Lao PDR comprised the BOL, four State-owned commercial banks, 
two joint venture commercial banks, eight privatel y-owned banks and 11 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.  Implementing Decree 
No. 275/PM to the new law was adopted on 25 Sept ember 2009.  A financial sector strategy was 
adopted by Prime Minister's Decree No. 273/PM , dated 22 September 2009 and Decision of the 
Governor No. 276/BOL, dated 20 April 2010.  WT/ACC/SPEC/LAO/5 
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  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 
had outpaced government revenue.  Over the peri od 1994 to 1998, expenditure had accounted for 
21 to 27 per cent of GDP, and revenue between 11 an d 13 per cent of GDP.  The fiscal deficit in 1998 
had amounted to 12.8 per cent of GDP.  Helped by  tax reforms, revenue had been higher than 
expected since the fiscal year 2005/06, while expenditu res had been in line with established targets.  
Over the period 2004/05 to 2009/10, the revenue to  GDP ratio had ranged from 12.1 to 22.3 per cent, 
while the expenditure ratio had been in the 19 to  24.6 per cent range.  Net domestic financing had 
continued to decline.   
12. 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 enha ncing the role of excise taxes.  The tax regime 
had been transformed further with the promulgation of the Tax Law No. 04/NA of 19 February 2005.  Lao PDR was aiming to broaden its direct and indi rect tax bases, improve tax efficiency, increase 
revenues from domestic taxes, and reduce the de pendence on border duties.  A break-down of 
government revenue from 2004/05 to 20 09/10 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 2009/10 
Tax revenue 2,803.1 3,641.1 4,721 5,627.1 6,207.6 7,502.6 
Profit tax 307.2 458.9 918. 6 1,321.6 1,303.0 1,125.0 
Income tax 214.9 234.2 251.8 333.1 424.7 462.4 
Land tax 27.6 30.1 46.6.8 78.0 63.9 77.6 
Business licences 2.2 6.1 1.5 2.5 3.7 2.5 
Minimum tax 12.8 22. 2 19.3 21.5 29.2 33.2 
Turnover tax 673.5 887.1 1,045. 99 1,228.5 1,401.0  1,868.7 
Excise tax 522.8 800.3 998. 7 1,190.0 1,432.5  1,686.7 
Tax on foreign trade 472.0 567.6 598.5 696.5 775.0 890.8 
- Import duties 428.6 514.5 572.6 674.2 726.2 832.0 
- Export duties 43.4 53.1 25.9 22.3 48.8 58.9 
Registration fees 17.6 24.7 49.0 13.9 26.7 44.6 
Other fees 211.2 162.6 261.62 263.4 372.6 702 
Natural resource taxes 94. 8 217.6 273.8 316.5 219.5 450.6 
Timber royalties 189.4 172.5 212.3 105.2 78.1 49.3 
Hydro royalties 57.1 57.2 43.0 56.4 77.7 109.3 
Non-tax revenue 584.3 624. 9 620.3 812.0 822.8 1,036.0 
Leasing income 44.2 36.1 29.9 27.2 41.1 38.0 
Concessions 8.1 7.4 8.7 17.9 30.7 37.6 
Fines 15.3 23.8 33.1 31.4 25.3 29.8 
Administrative fees 69. 2 89.2 94.9 100.9 76.0 122.5 
Dividends 177.8 174.8 156.7 293.3 338.4 419.0 
Interest 47.9 65.0 65.9 105.3 94.7 147.2 
Over flight charges 221.8 228.6 231.2 235.4 203.4 222.4 
Total Revenue 3,387.4 4,266.0 5,341.0 6,439.1 7,030.4 8,538.3  WT/ACC/SPEC/LAO/5 
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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 BOL was containe d in Edict No. 01/P "On Management of Foreign 
Exchange and Precious Metals" of 17 March 2008 and its implem enting regulations (Instruction 
No. 1/BOL "On the Implementation of Edict on th e Management of Foreign Currency and Precious 
Metals" of 2 April 2010).  Edict No. 01/P (2008) ha d amended and replaced the previous Decree Law 
No. 1/OP (2002) to reflect the IMF's recommenda tion on Article 13 (about th e exchange rate being 
determined by the market) and Article 27 (the need for tax certificates for remitting profits abroad).  
Following the review and the amendment of certain  provisions in Lao PDR's legal framework, the 
Government of Lao PDR had formally accepted the oblig ations of Article VIII, Sections 2, 3 and 4 of 
the IMF's Articles of Agreement on 28 May 2010.  Notification No. 57/BOL had been adopted on 
6 March 2008.  The Notification facilitated the ac quisition of foreign exchange by the public.  
Purchases not exceeding KN 20 million per person per day required the presen tation of an identity 
card only. 
15. Instruction No. 1/BOL of 2 April 2010 repl aced Instruction No. 2/BOL (2003) and the 
Additional Instruction No. 1/BOL (2004), which rela ted to the obligation that foreign exchange 
earnings be repatriated within 120 days, and that resident exporters , except those who had been given 
specific permission (i.e. income used to repay ex ternal loans approved by the BOL, payment for 
letters of credit approved by the BOL,  or conditions stipulated in a c ontract between a foreign investor 
and the Government of Lao PDR), were required to remit their proceeds through any commercial 
bank located in Lao PDR within a stipulated time li mit.  He further added that Regulation No. 1/BOL 
(2000) had been replaced by Notification No. 499/BOL of 7 July 2009, whereby foreign exchange surrender by wood exporters was abolished.  WT/ACC/SPEC/LAO/5 
Page 6  
 
  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 the Governme nt 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 Ministry of 
Education, and within limits established by the BOL;  and (ix) emigrating residents, within limits set 
by the BOL, to cover travel expenses and, as aut horized, to export their capital.  No quotas or prior 
approval requirements existed for the purchase of fo reign 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 organiza tions, and the general public.  In 2010, the average exchange rate 
had amounted to KN 8,247 per US$1.   WT/ACC/SPEC/LAO/5 
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  18. As for Lao PDR's balance of payments situa tion, he said that Lao PDR's merchandise trade 
balance was usually in deficit, but the overall bala nce had been in surplus since 2002.  Gross foreign 
reserves had been at levels providing 5.4 months of import cover in 2009 an d 4.3 months in 2010.  
The external debt to GDP ratio had declined from 71.3 per cent in 2002 to 48.5 per cent in 2008 and 
further reduced to 43.7 in 2010.  The debt-ser vice ratio had fallen over the same period from 
8.6 per cent in 2002 to 4.6 per cent in 2008 and rose slightly to 4.7 in 2010.  He informed Members 
that the overall balance of payment for 2010 recorded  a surplus of US$97.4 million compared with the 
US$3.72 million deficit in 2009.  
- 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) and Law No. 11/NA "On the Promotion of Foreign 
Investment" of 22 October 2004 (that previously gov erned foreign investments).  The implementing 
regulation of Law No. 02/NA, Decree No. 119/PM "On Implementation of Investment Promotion 
Law" (see document WT/ACC/LAO/24/Add.1), was adopted on 20 April 2011, which had replaced 
the previous implementing regulations, Decrees No s. 300/PM and 301/PM of 12 October 2005.  
20. In accordance with  Law No. 02/NA "On Investment Promotion", investment could be wholly 
domestic or foreign owned; a joint venture be tween domestic and foreign investors; or a 
joint-business investment contract.  The Law furthe r distinguished between investment in general 
businesses; in concession businesses; and in border or special economic zones.  The list of concession businesses had been elaborated in Decree No. 119/PM  "On Implementation of Investment Promotion 
Law".  Article 4 of Law No. 02/NA provided that  the Government should promote and facilitate 
investments, both domestic and foreign, in all sectors, businesses and areas across Lao PDR.   
Exceptions were with regard to threats to nati onal security; the environment; public health; and 
national culture, as reflected in Decree No. 68/PM  "On Controlled Business" (Negative List) of 
28 April 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 Department of Investment Promotion for General Businesses 
under the Ministry of Industry and Commerce or the Provincial Industry and Commerce Office.  Concession business investments required an invest ment application to a one-stop-service at the 
Ministry of Planning and Investment or the Provinc ial Planning and Investment Office.  Investors in 
border or special economic zones were required to submit an application to a one-stop-service within WT/ACC/SPEC/LAO/5 
Page 8  
 
  the zone.  The timeframe for granting licenses was identical for domestic and foreign investments.  
Data on foreign investment projects appr oved since 2004 is presented in Table 3. 
Table 3:  Approved Foreign Investment Projects (2004 to 2010) 
Years 2004 2005 2006 2007 2008 2009 2010 
Number of projects 161 143 171 191 152 208 207 
Value (US$million) 533.1 1,245.3 2,699.7 1,136.9 1,215.5 4,312.9 1,402.2 
 
22. Investment projects were subject to a regist ration fee established in accordance with Edict 
No. 03/PO "On Fees and Service Charges" of 19 Nove mber 2008 (Table 4).  In the past, the Ministry 
of Finance had also charged a fee for registration as a taxpayer equal to 0.1 per cent of the 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 collected 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 registered capital Registration fee 
 
1. 
2. 
3. 
4. 5. 
6. 
7. 8. 
9. 
10.  
Less than KN 1,000,000  
From KN 1,000,001 to KN 10,000,000  
From KN 10,000,001 to KN 20,000,000  
From KN 20,000,001 to KN 50,000,000  From KN 50,000,001 to KN 100,000,000  
From KN 100,000,001to KN 400,000,000  
From KN 400,000,001to KN 1,000,000,000  From KN 1,000,000,001 to KN 10,000,000,000  
From KN 10,000,000,001 to KN 20,000,000,000  
Above KN 20,000,000,001   
Nil 
KN 20,000   
KN 50,000   
KN 100,000   KN 300,000   
KN 500,000   
KN 1,000,000   KN 2,000,000   
KN 3,000,000   
KN 5,000,000   
 
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 financial support or credit.  Investment incentives 
were provided in the form of revenue foregone.  According to Law No. 02/NA "On Investment 
Promotion", investors could, upon written request, receive the incentives available under the new 
investment regime.  The Law stipulated incentives in  the form of profit tax, import and export duty  WT/ACC/SPEC/LAO/5 
 Page 9 
 
 
  exemptions.  The promoted sectors were agriculture, industry, handcrafts and services based on 
Government priorities for poverty reduction, employmen t, etc.  The Government had also designated 
zones, namely Zone 1 with insufficient socio-ec onomic infrastructure to facilitate investments, 
e.g. mountainous remote regions; Zone 2 with soci o-economic infrastructure to partially facilitate 
investments; and Zone 3 with infrastructure favourable  for investments.  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 incentives in the form of rental or land 
concessions (from three to 15 years) were extended  to investments in hospitals, kindergartens, 
schools, vocational schools, colleges, universities, resear ch centres and public utilities.  Investments in 
these activities were also eligible for an additiona l five year profit 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 investment incentives extended, 
pursuant to the Law No. 02/NA "On Investment Promotion", were contingent upon local content or export performance requirements. 
25. Previously, Laws Nos. 10/NA and 11/NA, as well as their Implementing Decrees 
Nos. 300/PM and 301/PM, had provided similar incentiv es.  However, to qualify for these investment 
incentives, companies had been required to fulfil a minimum of three among six stipulated conditions, 
namely (i) hiring at least 90 per cent of the la bour force locally; (ii) using model technology; 
(iii) preserving the environment in accordance w ith the Law "On Environmental Protection"; 
(iv) a promoted activity complementing other domes tic 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 content 
requirement, import duty remission or exemption was only granted for products or materials not 
available domestically.  Some Members had ur ged Lao PDR to eliminate WTO incompatible 
investment measures upon accession, in particular  the export performance and local content 
requirements; provisions requiring foreign-invested co mpanies to hire at least 90 per cent of the work 
force locally (Article 12.5); and obliging foreign-invested companies to train, upgrade professional 
skills, and transfer technology to the local employ ees (Article 13).  The representative of Lao PDR 
took note of Members' comments and agreed to cons ider them when revising Laws Nos. 10/NA and 
11/NA, and their implementing regulations.  He s ubsequently confirmed that these requirements had 
been eliminated in Law No. 02/NA "On Investment Promotion" of 8 July 2009 and its implementing 
decree (Decree No. 119/PM).  
26. In response to a question concerning the investor's obligation to provide compensation for 
impacts caused by their business operation, the representative of Lao PDR clarified that this 
obligation, as provided for in Article 69.5 of Law No. 02/NA "On Investment Promotion", was a WT/ACC/SPEC/LAO/5 
Page 10  
 
  general obligation deriving from Article 83 of  the Contract and Tort Law No. 01/NA of 
8 December 2008.  According to this Article, a dom estic or foreign investor should be liable for 
damages caused by his act.  The affected party had to file a complaint.  Compensation provided for 
under Article 69.5 of Law No. 02/NA "On Investment Promotion" was non-automatic and subject to a 
court proceeding, in accordance with th e Civil Procedure Law of Lao PDR. 
27. A Member requested Lao PDR to clarify to wh at extent the Lao PDR Registration Authority 
was authorized to suspend or revoke the investme nt, on the basis of environment or socio-economic 
conditions (Article 74 of Law No. 02/ NA "On Investment Promotion").  In reply, the representative of 
Lao PDR said that the authority would only suspend an investment, if the investment operation had 
violated applicable laws and regulations of Lao PD R.  This would include environmental obligations, 
as provided for under Article 70 of Law No. 02/NA.  In accordance with Article 40 of Decree 
No. 112/PM "On Environment Impact Assessment " of 16 February 2010, the Authority could 
determine severe negative impacts of an investment on the basis of the following factors:  (i) degree 
of severity of the environmental and social impacts; (ii) severity of pollution caused by the violation; 
(iii) existence of preventive measure s for foreseeable environmental and social impact; (iv) record of 
violations committed by the project developer; a nd; (v) record of violations committed by the 
investment project.  The enterprise would be disso lved in accordance with the Enterprise Law if no 
solution could be found within the timeframe of su spension, which was determined by the Authority. 
- State Ownership and Privatization 
28. 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 fo r approximately 4 per cent of Lao PDR's GDP 
in 2002. 
29. 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 then reduced its share at subsequent stages.  WT/ACC/SPEC/LAO/5 
 Page 11 
 
 
  30. 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 consider it feasible to reduce its share.  
Foreign ownership of such stakes could be expect ed, and the granting of control over some of the 
privatized enterprises would be considered. 
31. He stated that, at present, Lao PDR had taken no decision to privatize the remaining 
37 State-owned enterprises, as they were consider ed important for national security, defence, and 
economic and social development.  He adde d that Lao PDR was currently implementing a 
programme, supported by the World Bank, to restruct ure State-owned enterprises in order to increase 
their efficiency.  The restructuring programme had be en initiated for certain enterprises, i.e. Electricité 
du Laos (EDL); Lao Airlines; Lao National T ourism; Banque pour Le Commerce Extérieur Lao 
(BCEL); Enterprise of Telecommunication Lao (ETL); and in the supply of water (decentralization of 
the Vientiane Municipality Authority).  No timeta ble had been set for the restructuring of these 
enterprises.  He noted that the restructuring pr ocess did not necessarily include privatization, but 
could lead to it.   
32. The representative of Lao PDR said that the study  for the establishment of a securities market 
in Lao PDR was completed in mid-2010.  The La o Securities Exchange (LSX) was established on 
10 October 2010 and had been operational since Janua ry 2011.  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.  As a result of the restructuring programme, 25 per cent of the shares 
of EDL and 30 per cent of the shares of BCEL ha d been sold to the public through initial public 
offering (IPO).  The newly reconstituted EDL-Gen (with 75 per cent shareholding by EDL) and 
BCEL had been listed in the LSX since January 2011.  ETL was planning an IPO of 30 per cent of its 
shares.     
- Pricing Policies 
33. 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 "On the Administration of Prices of Goods" of 
11 October 2001 authorized the Ministry of Indust ry 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 "On the Implementation of Pri ce Administration" of 22 March 2002, making 
some 30 products/product groups subject to price cont rols or surveillance (Tables 6(a) and 6(b)).  
He noted that the plan to revise Instruction No. 0334/MOC/ITD was no longer being pursued.  WT/ACC/SPEC/LAO/5 
Page 12  
 
  Lao PDR was in the process of adopting the list of essential utilities (services) subject to price 
administration, which had been included in th e revised Legislative Action Plan (document 
WT/ACC/LAO/9/Rev.6).   
34. Prime Minister's Decree No. 207/PM had subsequently been replaced by Prime Minister's 
Decree No. 474/PMO "On Prices of Goods and Services" of 18 November 2010 (see document WT/ACC/LAO/20/Add.1).  This new Decree provided the principles of price administration: 
(i) prices should be determined by market force; (ii) the Government should respect the right of price 
determination and price competition of business operators in accordance  with the laws and 
regulations; and, (iii) the Government might a pply measures to administer prices only in case of 
necessity, and should adhere to non-discrim ination and transparency principles. 
Table 6(a):  Price Controls in Lao PDR 
 HS Number Product description Measure 
1. 2710, 2711 Fuel and gas Maximum prices 
2. 7213-7215 All kinds of steel for construction 
3. 2523 Cement 
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 
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  WT/ACC/SPEC/LAO/5 
 Page 13 
 
 
   HS Number Product description 
25. 0201, 0202, 0203, 0207, 
0209, 0210, 1602 Meat (cattle, pork and poultry) 
26. 03 Sea fish and fresh water fish 
 
35. On price controls, in order to support farmers'  incomes, a minimum (floor) price for glutinous 
rice was determined and recommended annually by the Government of Lao PDR to serve as an 
optional reference for the sale and purchase of glutinous rice between farmers and mill houses.  
The representative of Lao PDR confirmed that such  minimum price was not compulsory and did not 
affect imported rice.  The minimum prices had been below the international market price in almost all years.  In his view, the price control on rice had no impact on the import and export regime of Lao PDR.  Lao PDR was currently re-examining this  measure to ensure its consistency with the 
provisions of the WTO Agreements.  Consideri ng the socio-economic importance of rice, the 
Government would like to maintain the possibility of  using this measure.  He added that Lao PDR had 
no policy prohibiting the importation of rice and noted that his Government included rice in the automatic licensing regime instead of  the non-automatic licensing regime. 
36. Maximum prices applied to fuel and gas – all of which was imported – and to domestically-
produced and imported construction steel and ce ment.  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 th e Internal Trade Department of the Ministry of 
Industry and Commerce, and the Department mon itored the adherence to  the approved maximum 
prices.   
37. On price surveillance, the representative of La o PDR said that the measure was principally a 
monitoring device for goods where price hikes could have severe repercussions  on households and did 
not imply any government intervention in the mark et.  The measure essentially implied inspection by 
officials from the Internal Trad e Department of the Ministry of Industry and Commerce or the 
Provincial Offices of Industry and Commerce.  The inspectors controlled that traders displayed the 
prices of their products appropriate ly, and conducted spot checks to ensure adherence to the pricing 
regulations.  Traders were required to coopera te fully with the inspecting officials.   
38. The representative of Lao PDR confirmed that, from the date of accession, Lao PDR would 
apply price controls in a WTO-consistent fashion, including Articles III:4 and III:9 of 
the GATT 1994, and Article 4 of the WTO Agreement on Agriculture, and Article VIII of the General 
Agreement on Trade in Services (GATS), and take account of the interests of exporting 
WTO Members.  Lao PDR would also publish the lis t of goods and services subject to price control WT/ACC/SPEC/LAO/5 
Page 14  
 
  and any changes to this list in its Official Gazette.  The Working Party took note of these 
commitments.  
- Competition Policy 
39. 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 
40. 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 
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.   
41. 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  WT/ACC/SPEC/LAO/5 
 Page 15 
 
 
  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 and decrees; preparing so cio-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 decisions and instructions of ministries, other government 
organizations or local administration if contra ry to existing laws; and signing and implementing 
treaties with foreign States.   
42. 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 Information, Culture and T ourism (copyright), the Minist ry of Natural Resources 
and Environment (environmental protection) and th e Ministry of Science and Technology (TBT and 
protection of intellectu al property rights).   
43. Pursuant to the amended Law No. 09/NA "On the People's Court" of 26 November 2009, 
39 Regional Courts had been established to replace the District Courts; the Courts of Appeal had been 
named as the High Courts; and, the Juvenile Courts  would be established at  provincial level and in 
Vientiane Capital.  The new judiciary in Lao PD R consisted of Regional C ourts; Juvenile Courts; 
Provincial and Vientiane Capital Court (Court of  First Instance); High Courts; and the People's 
Supreme Court.  Regional Courts, the lowest tier of the court system, dealt with cases relating to family relations; and civil or criminal cases i nvolving claims of less than KN 300,000,000 or prison 
terms of less than two years.  Appeals of the d ecisions of the Regional Courts and other civil and 
criminal cases were addressed to the Provincial Courts or Vientiane Capital Court.  Appeals of 
decisions of the Provincial Courts or Vientiane Ca pital Court could be brought to the High Courts.  
The Supreme Court was the last resort.  
44. Law No. 05/NA "On the People's Courts of La o PDR" of 21 October 2003 had established 
civil and commercial chambers attached to the prov incial 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 jurisd iction to adjudicate on business or commercial 
matters, including cases relating to business or co mmercial contracts and documents (promissory 
notes, bills of exchange, cheques, etc.); commercia l loan Agreements; the bankruptcy and liquidation WT/ACC/SPEC/LAO/5 
Page 16  
 
  of enterprises; cases involving business or commercial relationships concerning the importation or 
exportation of goods, including trade support services; a nd violations of copyright and trademarks.  
The commercial chambers did not have the authorit y to rule on trade-related administrative decisions 
of the Government.   
45. 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.   
46. 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, which was further revised as Law No. 06/NA "On Resolution 
of Economic Disputes" of 17 December 2010.  An Office 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.   
47.  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 
administrative actions.  The representative of Lao PDR further confirmed that from the date of accession, Lao PDR's laws and regulations would provi de individuals or enterprises affected by any 
administrative action subject to WTO provisions, the ri ght to appeal such action, without penalty, to 
the courts or other independent tribunal in confor mity with WTO obligations, including those set out 
in Article X of the GATT 1994, Article 23 of the WTO Agreement on Subsidies and Countervailing 
Measures, Article 11 of the WTO Agreement on Implementation of Article VII of the GATT 1994,  WT/ACC/SPEC/LAO/5 
 Page 17 
 
 
  Article 62 of the WTO Agreement on Trade-Relate d Aspects of Intellectual Property Rights and 
Article VI of GATS.  The Working Party took note of these commitments. 
48. 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 promulgated by the President on th e recommendation of the Standing Committee of the 
National Assembly; (iv) Presidential Decrees; (v) Prime Minister's Decrees; and (vi) Government 
resolutions, and instructions or decisions of the Prime Minister or ministries for implementing laws or 
decrees.  Although the legislation hierarchy did not include treaties and international agreements 
ratified by Lao PDR (amending or pr omulgating new domestic laws), he noted that such treaties and 
international agreements prevailed the Constituti on and laws adopted by the National Assembly.  
Edict No. 01/PO "On Conclusion, Accession and Im plementation of Treaties" of 7 October 2009 
regulated the negotiation, ratification and implem entation procedures of international treaties.  
Pursuant to Article 31, paragraph 4 of this Edict, international trea ties prevailed over national laws in 
case of conflict.  Presidential and Prime Minister decrees were based on laws or edicts specifically authorizing the issue of such decrees or orders .  Only the National Assembly could amend the 
Constitution (Article 97 of the 2003 Constitution), 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 in case of conflict.  Lao PDR 
was pursuing a programme of legislative reform, th e Plan for Building New Laws and Amendment of 
Laws (2011 to 2015), to introduce WTO-consistent le gislation and implement WTO provisions.  Laws 
recently adopted or amended included the laws on Customs; Tax; Petitions; Forestry; Value Added 
Tax; Commercial Banks; State Inspection; Resolu tion of Economic Disputes; Business (renamed the 
Law on Enterprises); Intellectual Property; Live stock Production and Ve terinary; and Plant 
Protection.  The representative of Lao PDR update d the Working Party on progress in legislative 
reform and the outlook for further reforms in th e Legislative Action Plan (document WT/ACC/LAO/9 
and its Revisions).   
- Authority of Sub-Central Governments 
49. 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 WT/ACC/SPEC/LAO/5 
Page 18  
 
  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.   
50. [Asked how the central authoriti es might address complaints by  importers or exporters of 
sub-central entities violating WTO provisions, the re presentative of Lao PDR replied that from the date 
of accession, Lao PDR would apply WTO provisions, including Lao PDR's Protocol of Accession, uniformly throughout the entire customs territory, including its special economic zones, and other areas where special regimes for tariffs, taxes and regulations were established.  Article 4 of the Law No. 07/NA "On the Handling of Petition" of 9 Novemb er 2005 provided the legal redress to companies 
facing an apparent breach of WTO obligations by su b-central authorities.  He further confirmed that 
when informed of a situation where WTO provisions were allegedly not being applied or were applied 
in a non-uniform manner, central authorities would investigate such claims [promptly] and, if the 
charges were found to be valid, act to enforce WTO provisions without requiring affected parties to 
petition through the courts.  The Working Party took note of these commitments.] 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights  
51. 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. 114/GOL "On the Import and Export of Goods" of 6 April 2011  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 pre sence to engage in import and export activities.    
52. The 2005 Enterprise Law, which replaced the Business 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  WT/ACC/SPEC/LAO/5 
 Page 19 
 
 
  company.  Business registration was affected 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 - the Department of  Investment Promotion for General Businesses, Ministry of Industry 
and Commerce - for State-owned ente rprises established by the centra l authorities and joint ventures 
with these enterprises; for enterp rises engaged in importation of ve hicles, petroleum and luxury goods, 
or exportation of wood and wood produ cts; and for foreign-invested ente rprises with a registered capital 
of US$200,000 or more.  Province-leve l registration at the Vientiane Ca pital and Provincial Industry and 
Commerce Offices applied to other domestic and fore ign-invested enterprises, State-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 
enterprises was split between the central and provinc ial authorities to overcome human and institutional 
capacity constraints and to speed up the approval pr ocess.  The business registration process usually 
took ten working days, but could be extended for an a dditional three working days in case of controlled 
businesses (Prime Minister's Decree No. 68/PM, Articl e 3).  Controlled businesses were characterized as 
highly sensitive to national stability, social order, national traditions a nd the environment, and, therefore, 
required the permission of, and inspec tion by, the relevant authorities, prior to the registration of the 
enterprise.  The list of controlled businesses was being reviewed and amended (Table 2). 
53. 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 (Edi ct No. 03/PO of 19 November 2008).   
54. Enterprises engaging in trade for commercial purposes were allo wed to import or export the 
goods for which they had registered.  The goods were lis ted in their business certif icates and verified at 
the border by customs officials.  A trading enterprise  wishing to expand the scope of its business to other 
products would submit an application to the Depa rtment of Investment Promotion for General 
Businesses of the Ministry of Industry and Comme rce (and/or Provincial Industry and Commerce) and WT/ACC/SPEC/LAO/5 
Page 20  
 
  needed to fulfil the conditions or requirement s mandated for particular  products.  Additional 
requirements applied to specific goods such as medicines (competenc y and storage faci lities) and fuels 
and gas (safe handling).  These requi rements applied equally to domestic  and foreign firms.  Importers 
of vehicles, petroleum and luxury goods required verification from th e provincial authorities before 
registering with the Ministry of Industry and Co mmerce.  Importers were no t automatically considered 
wholesalers, and an importer wa s not required to also be the di stributor of the imported goods.  
Importation by enterprises and individuals of goods fo r own or personal use was permitted subject to the 
applicable laws and regulations in accordance w ith Decree No. 114/GOL "On the Import and Export 
of Goods". 
55. 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 
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 would, by the da te of accession, conform with 
WTO requirements and approximate th e cost of services rendered.  This Member suggested that 
Lao PDR develop an action plan specifying dates by  which Lao PDR intended to replace or amend 
existing legislation concerning trading rights , in conformity with WTO obligations.   
56. The representative of Lao PDR st ated that Prime Minister's Decree No. 114/GOL "On Import 
and Export of Goods" of 6 April 2011, which had re placed Decree No. 205/PM "On Import and Export 
Management" of 11 October 2001, covered substantive elements of the WTO Agre ements, in particular, 
Articles II, III, X and XI of the GATT 1994, and would further liberalize La o PDR's import and export 
regimes, including trading ri ghts, to bring them in line with WTO rules and principles.  In response to 
specific questions, he replied that foreign firms had th e same rights to import as Lao firms provided the 
foreign firms were "physically present" in his coun try, i.e. registered as an import and/or export  WT/ACC/SPEC/LAO/5 
 Page 21 
 
 
  enterprise in accordance with relevant laws and re gulations of Lao PDR.  Pr eviously, Lao PDR did not 
provide for registration as importers or exporte rs of firms or individuals located outside the country.  
However, in light of Members' comments and foll owing consultations with stakeholders, Decree 
No. 114/GOL had allowed the "importer of record", i.e. importers who had no commercial presence in Lao PDR, to import goods into La o PDR and sell those goods to ente rprises that had the rights to 
distribute such goods.  He said that there were currently no other regist ration requirements for 
prospective importers of record.  Lao PDR was studying the necessity  to establish the registration 
regulation for prospective importers  of record.  A copy of Prime Mi nister's Decree No. 114/GOL had 
been submitted to the Working Party (document WT/ACC/LAO/21). 
A. IMPORT REGULATIONS 
- Ordinary customs duties 57. The representative of Lao PDR said that Lao PDR had applied the AS EAN Harmonized Tariff 
Nomenclature (AHTN) since 1 October 2003.  The nomenclature was currently based on the 
2007 version of the Harmonized Co mmodity Description and Coding Sy stem (HS).  All MFN customs 
duties were ad valorem , applied on the c.i.f value of the impor ted goods, with a median tariff rate of 
5 per cent and a weighted average tariff of 14.7 pe r cent; 9.5 per cent unweighted.  Lao PDR maintained 
six tariff bands with duty rates of 5, 10, 15, 20, 30 a nd 40 per cent.  Low tariffs (5 to 10 per cent) were 
set on imported raw materials and agricultural inputs.  The highes t rate applied to "luxury goods" 
(document WT/ACC/LAO/5, Annex IV),  or to protect local agricultura l, handicraft and manufacturing 
activities. 
58. 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 59. 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 a nd charges".  He further confirmed that Lao PDR WT/ACC/SPEC/LAO/5 
Page 22  
 
  would bind "other duties and charge s" 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 
60. The representative of Lao PDR said that La o PDR did not apply tariff rate quotas on any 
product.   
61. 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 reduction as an investment incentive provid ed 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, the import of raw materials, vehicles and 
equipment used for production were exempt from dut y (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.   
62. 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 
63. The representative of Lao PDR said that pursuan t to Edict No. 03/PO "On Fees and Services 
Charges" of 19 November 2008, the Customs Serv ice charged some customs processing fees on 
importation and exportation, ranging from KN 250 to KN 100,000.  The Ministry of Health collected 
a fee for the inspection of imported medicines (KN 20,000 per invoice); the biennial registration of imported foodstuff subject to controls (KN 50,000 per product); and a fee for issuing import permits 
for food products which had been converted from an ad valorem  (0.05 per cent) to a specific rate 
(KN 20,000 per invoice).  The Ministry of Science and Technology (MoST) collected a quality inspection fee on imported fuels, steel bars, and cement, which had been reviewed, and converted  WT/ACC/SPEC/LAO/5 
 Page 23 
 
 
  from an ad valorem  to a specific rate (KN 600,000 per invoice) in accordance with Regulation 
No. 1226/PMO-NAST of 17 July 2009.  The Ministry of Industry and Commerce and relevant 
competent licensing authorities charged fees (KN 10,000 or KN 40,000 per set) for issuing import or 
export licences.  Warehouse authorities collected non- ad valorem  warehouse fees, which would be 
based on the type of goods and the period of storag e.  All these fees and charges set-out in Edict 
No. 03/PO "On Fees and Services Charges" were enum erated in Table 7 (see Annex).  He added that 
the Edict was being revised and woul d be adopted by September 2012.   
64. [The representative of Lao PDR confirmed that, from the date of accession, all fees and 
charges for services rendered, applied on or in connection with importation or exportation, would 
conform with the provisions of the WTO Agreemen t, in particular Articles VIII and X of the 
GATT 1994.  The Working Party took note of this commitment.] 
- Application of internal taxes to imports 
65. The representative of Lao PDR said that pursuant to Article 28 of the Tax Law No. 04/NA of 
19 February 2005, excise taxes ranging from 5 to 90 per cent were levied on fuels, alcoholic and 
non-alcoholic beverages, tobacco products, perfumes and cosmetics, playing cards, fireworks, motor 
vehicles, recreational boats, electrical appliances a nd certain services.  The goods and services subject 
to excise tax are listed in Table 8.  The excise ta x rates no longer distinguished between imported and 
domestically-produced goods.  Previously, and as not ed by some Members, the excise duty regime 
based on Notification No. 1061/MOF of 13 June 2 003 had imposed substantially higher duties on 
imports than on domestic production.  Purchases by embassies and international organizations, or for 
externally-funded projects; kerosene; alcohol for medicinal purposes (Accon 90); and exported 
excisable goods; were not subject to excise tax.   
66. The representative of Lao PDR said that Lao PDR applied a turnover tax pursuant to Tax Law 
No. 04/NA of 19 February 2005.  The turnover tax constituted a genera l indirect tax on the 
consumption of goods and services.  Previously, two tax rates, 5 or 10 per cent, had been levied.  
The two tax rates had been unified to a single rate  of 10 per cent in accordance with Edict No. 001/OP 
"On Amendment of Rates of Business Turnover Ta x, Profit Tax and Salary Income Tax" of 
1 March 2011.  According to Article 13 of the Tax Law, some goods and services were exempt from 
the turnover tax, e.g. equipment imported for research projects, imported vaccines, education 
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 wholesalers.  A refund mechanism allowed businesses to deduct turnover tax paid on raw materials from their monthly 
turnover tax bills.  According to Article 14 of th e Tax Law, the taxable base for turnover tax on WT/ACC/SPEC/LAO/5 
Page 24  
 
  imported goods was the declared customs value plus the customs duty and the excise tax, if 
applicable, whereas domestically-produced goods circ ulated in Lao PDR were taxed on the basis of 
the actual sales price, the actual value of th e contract for goods produced under contractual 
arrangements, or the actual price paid by the purch aser for sales on credit.  If applicable, the excise tax 
and fees were also calculated together with the wh olesale factory price, as taxable base for turnover 
tax.  
67. In response to specific questions, he confirmed that goods exempt from import duty were also 
exempt from the turnover tax.  However, goods subject to a zero import duty were subject to turnover tax. 
68. 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 
Tax Law, although any small business wishing to register for VAT would be able to do so.  
The concurrent application of VAT and turnover tax would 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 w as making every effort to keep its tax regime 
WTO consistent.  Asked whether Lao PDR wa s contemplating a VAT refund mechanism for 
non-established taxable persons, he said that VAT was not collected on exports.   
69. 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 provide 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 with Article III of the GATT 1994.  The two turnover tax rates, 5 per cent 
and 10 per cent, had already been unified to a single rate of 10 per cent. 
70. 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 
full conformity with its WTO obligations, includ ing Article III of the GATT 1994.  The Working 
Party took note of this commitment.  WT/ACC/SPEC/LAO/5 
 Page 25 
 
 
  - Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
71. 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.  The list of prohibited goods presented in document WT/ACC/LAO/5 (Annex II) had 
been revised and simplified.  The most recent listing provided in Notification No. 0973/MoIC.DIMEX "On Prohibited Goods on Import or Export" of 25 May 2011.  
Six product groups were subject to import prohibition (Table 9).  In response to specific questions on 
the prohibition of used products, he stated that  used products had been removed from the prohibited 
import list.  They were no longer subject to either import prohibition or import licensing .  
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,  weapons and ammunition 
imported by the Ministry of National Defence for m ilitary purposes.  To import prohibited products in 
these exceptional cases, the importer first submitted a request to the relevant authority (e.g. the 
Ministry of Public Health), and w ith the endorsement of the relevant  authority obtained approval from 
the Prime Minister's Office. 
72. The representative of Lao PDR said that Lao PDR had been streamlining its import 
procedures with a view to bringing them into  compliance with the WTO Agreement on Import 
Licensing Procedures.  He confirmed that the trade balancing policy and the indicative import plans 
had been abolished in 2007 (Order No. 0453/MOIC .DIMEX of 26 March 2007).  Currently, Decree 
No. 180/PMO "On Import Licensing Procedures" of 7 July 2009 and Decree No. 114/GOL 
"On Export and Import of Goods" of 6 April 2011 cons tituted the legislative basis for the licensing 
regime.  The Ministry of Industry and Commerce, in consultations with other relevant ministries, was 
responsible for issuing Notifications to specify the goods subject to approval or non-automatic or 
automatic import licensing.  Notification No. 0076/ MOIC.DIMEX "On the List of Goods subject to 
Automatic and Non-automatic Import-Export Licensi ng" of 13 January 2012, provided updated lists 
of products subject to non-automatic import licen sing procedures (Table 10) and automatic import 
licensing procedures (Table 11).  He confirmed that the products listed in Tables 10 and 11 were the 
only goods that required a non-automatic or an au tomatic import licence for importation into Lao 
PDR. 
73. Decree No. 180/PMO set out the import licensing procedures.  The licensing procedures were 
implemented uniformly by the Department of Import and Export, Ministry of Industry and Commerce; other relevant Ministries (the Import Licensing Authorities) specified in Tables 10 and 11; or the Provincial and Vi entiane Capital Industry and Comme rce Offices.  The timeframe for WT/ACC/SPEC/LAO/5 
Page 26  
 
  processing applications for automatic and non-au tomatic import licenses was ten and 30 working 
days, respectively.  Applications were forwarde d to the relevant Import Licensing Authorities.  
The approval procedures and the agencies involved di ffered depending on the nature of the imported 
product.  Fees charged for obtaining an import licence we re listed in Table 7.  If an application for 
a licence was refused, importers were given the reas on in writing.  In cases where importers were still 
not satisfied with the solutions provided, the impor ters had the right to appeal, as provided for in 
Article 5.9 of Decree No. 180/PMO. 
74. Pursuant to Article 4, 6 and 11 of Decree No. 114/GOL "On Export and Import of Goods" of 
6 April 2011, the Ministry of Industry and Commerc e was responsible for issuing and revising the list 
of goods subject to import and export licensing, in coordination and consulta tion with the relevant 
Ministries that actually issue the licences.  Cons ultation meetings with relevant stakeholders, 
including Ministries and business sectors would be conducted before the list was finalized.  
The participants of these consultations would incl ude representatives from various provincial offices 
and local businessmen.  He added that, as provided for in Decree No. 180/PM and Decree 
No. 363/PM "On Notification and Enquiry of Trad e Related Information", the private sector was 
consulted through their representatives together with  the ministries.  There was a specific timeframe 
to receive comments (within at least 60 days before adoption) and a specific timeframe to publish these lists (at least 180 days prior to publication).  The final list of goods subject to imports and exports licensing would be published on the MOIC website and offices of the Import Licensing 
Authorities.   
75. Members requested Lao PDR to modify this  mechanism to fulfil the requirement of 
Article 2.2(b) of the WTO Agreement on Import Licensing Procedures.  In response, the representative of Lao PDR stated that the requirements of Article 2.2(b) of the WTO Agreement on Import Licensing Procedures were addressed in Article 6 of Decree No. 180/PM "On Import 
Licensing Procedures". According to Article 6.4 of Decree No.180/PM, the Ministry of Industry and 
Commerce had to consult with other relevant mini stries to determine the list of goods subject to 
automatic import licensing.  The consultation could be held either annually or extraordinarily, upon 
request of the relevant ministry, to review whet her the list needed to be  adjusted, based on the 
circumstances which gave rise to the introduction of such an import licensing measure.  He added that 
the consideration of such necessity needed to comply with interna tional obligations of Lao PDR as 
required under Article 4 of Decree No. 114/GoL "On Import and Export of Goods" of 6 April 2011.  
Goods which were not prohibited or subject to th e sanitary and phytosanitary measures, technical 
regulations, the automatic or non-automatic import licensing (as listed in Tables 10 and 11) proceeded 
directly to customs clearance without the requirement for any import or export licence.  WT/ACC/SPEC/LAO/5 
 Page 27 
 
 
  76. The representative of Lao PDR noted that  a response to the Questionnaire on Import 
Licensing Procedures was submitted to the Wo rking Party in document WT/ACC/LAO/25.  
The Questionnaire provided further details on the crit eria and procedures to obtain an import licence. 
77. In response to the questions about the lists  of product subject to import licensing, the 
representative of Lao PDR replied that the previous  lists of products subject to import and export 
licensing (0826/MoIC.DIMEX) had been adjusted and replaced by the lists contained in Notification 
No. 0076/MOIC.DIMEX.  A number of products, such as rice, timber processing machines, 
refrigerators and ice maker, previously subject to non-automatic licensing, have been moved to the list 
of automatic licensing or have been removed from the list of products subject to import licensing.  
The import of such goods did not require any discre tion from the relevant authority.   He confirmed 
that the adjusted Notification had removed "first-c ome, first-served basis"  as a rule for issuing 
the import licences.   The list of products subject to automatic import licensing was also adjusted.  
Regarding the justification for automatic import licen sing on certain products, he stated that automatic 
licensing were only for statistical and import monitoring purposes.  As suggested by Members, HS codes had been added in the lists of produc ts subject to import or export licensing.  
78. [The representative of Lao PDR confirmed that, from the date of accession, Lao PDR's import 
licensing regime would conform to the provisions of the WTO Agreement on Import Licensing Procedures.  The Working Party t ook note of this commitment.] 
- Customs valuation 
79. Based on the initial information provided by Lao PDR (document WT/ACC/LAO/3, 
Annex 4), some Members noted that Lao PDR had ac knowledged that its legislation had not been in 
conformity with the WTO Agreement on Impl ementation 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 hier archy of valuation methods laid down in the 
Customs Valuation Agreement with transaction valu e being the preferred method of appraisement; 
banned the use of valuation methods prohibited accord ing to Article 7 of the Agreement, including 
minimum customs value or arbitrary or fictitious va lues; ensured adequate protection of confidential 
business information; met the transparency and due  process requirements of the Agreement, including 
the means for importers to obtain written informati on 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 not es were an integral part of the Agreement.   WT/ACC/SPEC/LAO/5 
Page 28  
 
  80. 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 Customs Law and Decree" of 12 March 2009, Ministerial 
Instruction No. 1398/MOF "On Customs Valuation"  of 16 June 2010 and Instruction No. 2401/CD 
"On Customs Valuation for Imported Goods" of 29 September 2010.  He stated that Article 13 of the 
2005 Customs Law and Article 4 of the Decree No. 362/ PM established the hierarchy of the valuation 
methodologies in line with the Customs Valuation Agre ement.  The right of appeal was provided for 
in Article 29 of the Law and Article 9 of the Decr ee No. 362/PM.  In 2011, Lao PDR had commenced 
a review of the Decree and relevant implementin g regulations with a view to incorporating all 
provisions of the Customs Valuation Agreement, in cluding the Interpretative Notes.  A new regulation 
on customs valuation of imported goods was being prepared and would be issued by June 2012 to 
implement Instruction No. 1398/MoF of 16 June 2010 .  The new regulation would replace Instruction 
No. 2401/CD of 29 September 2010.  He provided an Action Plan in document WT/ACC/LAO/12 
and its Revisions, outlining the steps undertaken a nd the objectives, timelines and technical assistance 
and training needs foreseen to implement the Cust oms Valuation Agreement gradually.  According to 
the latest revision of the Action Plan, Lao PD R would bring its legal framework on Customs 
Valuation into compliance with the Customs Va luation Agreement by December 2012.  Full 
implementation of the Agreement would be achieved upon accession.  
81. The representative of Lao PDR said that fu ll implementation of the Customs Valuation 
Agreement was a significant challenge to Lao PD R in terms of techni cal, organizational and 
institutional aspects.  Among the difficulties Lao PD R was facing, 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 capacity of the custom s administration to enforce valuation provisions.  
He noted that Lao PDR needed technical assistance on international best practices and provision of 
physical infrastructure in the establishment of the customs value database, trainings to equip 
Lao Customs with analytical skills in assessing the value of goods. 
82. The representative of Lao PDR said that the Cu stoms Department at th e Ministry of Finance 
had previously applied minimum values to a larg e number of products to provide consistency of 
treatment and to deter fraud.  To mitigate the impact to customs revenue, the introduction of the 
transaction value method and the elimination of th e minimum values had been undertaken gradually 
according to an action plan.  Transaction value (and the other valuation methods) had first been applied, 
at the end of 2010, to imports by large multin ational and Lao companie s with "good" compliance  WT/ACC/SPEC/LAO/5 
 Page 29 
 
 
  records, international organizations, and goods  imported for Governme nt projects and under 
Free Trade Agreements (Notification No. 1940/CD of 21 July 2010).  Alt hough there was no accurate 
statistics, the transaction value ha d been applied to the imports fro m ASEAN and other countries with 
which Lao PDR had conclude d FTAs, which account for the majority of Lao PDR's trade.  By the end 
of 2012, the valuation provisions of the Agreem ent would be applied to most imports.   
83. 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.    
84. 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.  The number of products subj ect to reference prices had been substantially 
reduced from 2,000 tariff lines (HS 8 digits) in 2009 to  800 tariff lines in 2010.  In 2011, the reference 
prices for most general goods and luxury goods (liquor , beer and wine) were eliminated.  For 2012, the 
reference price was only applied to the following six ve hicles and fuel products: sedan; pick-up; minibus 
with 16 seats and lower; jeep; gasolin e; and diesel.  The reference price for vehicles would be eliminated 
by 31 December 2012 and for fuel upon WTO accession.  A risk manageme nt system might need to be 
introduced once the new system had been establishe d to address fraud and unde r-invoicing by importers.  
He stated that the value reference database bei ng developed would be used exclusively as a risk 
assessment tool.   
85. Having reviewed Lao PDR's legislation on cust oms valuation, Members noted that certain 
provisions of the WTO Customs Valuation Agreemen t had not been adequately incorporated into 
relevant laws and regulations, notab ly, Article 1.2(a), Article 1.2(c), Article 2.1(a), Article 2.3 Article 
3.3, Article 6, Article 7, Articles 10-13, Articl es 15.2(c), (d), (e) and Article 15.5, Article 16, 
the principles set-out in the General Introductory  Commentary and the Interpretative Notes.  In 
response, the representative of Lao PDR noted that some of these Articles had already been reflected 
in Instruction No. 2401/CD "On Customs Valua tion for Imported Goods" of 29 September 2010.  
He added that Lao PDR was in the process to amen d Instruction No. 2401/CD to fully comply with 
the WTO Customs Valuation Agreement and to in corporate all Articles questioned by Members, 
including the Interpretative Notes.  WT/ACC/SPEC/LAO/5 
Page 30  
 
  86.  [The representative of Lao PDR confirmed that, from the date of accession, Lao PDR would 
fully apply the WTO provisions concerning customs valuation, including the WTO Agreement on the 
Implementation of Article VII of the GATT 1994 a nd Annex I (Interpretative Notes).  Lao PDR 
would ensure that any customs valuation method to  be applied would be in accordance with these 
WTO rules.  In this regard, he confirmed that refe rence prices and fixed valu ation schedule applied to 
imports in lieu of the transaction value to determin e customs valuation will be eliminated by accession 
and would not be reintroduced and that all methods of valuation used would be in strict conformity 
with those provided for in the WTO Customs Valua tion Agreement.  The Working Party took note of 
these commitments.] 
- Rules of origin 
87. 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 ASEAN Trade in Goods Agreement (ATIGA) and the 
Asia-Pacific Trade Agreement.  The customs officials in the Ministry of Finance and at the borders were responsible for administerin g the requirement.  The Department of Import and Export at the Ministry of 
Industry and Commerce and provincia l industry and commerce offices certified Lao exports to the 
markets covered by the ASEAN Trade in Goods Agreement (ATIGA) and ASEAN-India Free Trade 
Area, while the Chamber of Commerce and Industry issu ed the certificates for non-preferential exports 
and preferential exports for all ot her free trade areas (FTAs).  The fe es for issuing the certificate of 
origin ranged from KN 40,000 to KN 100,000. 
88. Asked to clarify whether Customs 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, the representative of Lao PDR said that th e Customs Law No. 05/NA had been amended in 
December 2011 and this provision had been remove d.  He further confirmed that Lao PDR accepted 
declarations of origin of goods, regardless of whethe r they were shipped from their country of origin.  
As defined in Article 2 of Decree No. 228/PM "O n the Origin of Imported and Exported Goods" of 
22 April 2010, the origin of goods was the pl ace where goods were produced or undergone production 
process.  The administration and the role of bodies responsible for administering the origin of goods 
were elaborated in Articles 16 and 19 of Decree No . 228/PMO.  In response to a specific question, he 
said that the term "simple assembly of parts" referred to the manufacturing or processing operations that were deemed basic and not taken into cons ideration when determining the origin of goods.  
Importers had the right to appeal decisions on the origin of goods.  WT/ACC/SPEC/LAO/5 
 Page 31 
 
 
  89. 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.   
90. The representative of Lao PDR confirmed that certificates of origin would be required for 
preferential purposes only, and would not be neces sary for MFN treatment.  The representative of 
Lao PDR confirmed that, from the date of accession, Lao PDR's preferential and non-preferential rules of origin would comply fully with the WTO Agreement on Rules of Origin, including the 
requirements of Article 2(h) and Annex II, paragra ph 3(d) of the Agreement, which require provision 
of an assessment of the origin of the import upon th e request of an exporter, importer or any person 
with a justifiable cause.  An assessment shall be i ssued as soon as possible, but no later than 150 days 
after the request for such an assessment, provided th at all necessary elements have been submitted.  
Any such assessment would remain valid for three years.  The Working Party took note of these 
commitments. 
- Other customs formalities 
91. 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 represen tative of Lao PDR replied that this measure was 
abolished on 1 May 2002.   
92. The representative of Lao PDR confirmed that La o PDR did not require consular certification 
or notarization of documents by consular officials in the country of export to be provided to customs 
officials at the time of importation into Lao PDR,  and would not require consular certification or 
notarization in the future.  The Working Pa rty took note of this commitment.   
- Pre-shipment inspection 
93. 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 WT/ACC/SPEC/LAO/5 
Page 32  
 
  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.   
94. The representative of Lao PDR confirmed that if preshipment inspection requirements were 
introduced, they would be temporary and in conform ity with the requirements of the WTO Agreement 
on Preshipment Inspection and other [related] WTO ag reements.  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 estab lishment 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 WT O Agreements, in particular Article X of 
the GATT 1994, would be applied.  He also confirmed that decisions by such firms could be appealed 
by importers in the same way as administrative decisions taken by the Government of Lao PDR.  The Working Party took no te of these commitments. 
- Anti-dumping, countervailing duties, safeguard regimes 
95. [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.  He further c onfirmed that Lao PDR would ensure  full conformity of such laws 
and regulations with the WTO Agreement, includi ng Articles VI and XIX of the GATT 1994 and the 
Agreements on the Implementation of Article VI , Subsidies and Countervailing Measures, and 
Safeguards.  He also confirmed that, after such laws and regulations were  implemented, Lao PDR 
would only apply any anti-dumping duties, count ervailing duties and safeguard measures in full 
conformity with WTO provisions.  The Work ing Party took note of these commitments.] 
[The representative of Lao PDR said that Lao PDR had no legislation authorizing the application of 
anti-dumping, countervailing, or safeguard measures at present, but would not exclude the possibility 
that such legislation could be implemented in the future.  With respect to safeguard measures, the 
representative of Lao PDR noted that his Government was in the process of drafting legislation but required a transition period of up to five years after its accession to the WTO to enact and notify  WT/ACC/SPEC/LAO/5 
 Page 33 
 
 
  safeguard legislation to the WTO that was in conf ormity with the provisions of the WTO Agreement 
on Safeguards.  During this period, Lao PDR woul d be able to impose safeguard measures to address 
serious injury or the threat of such injury with r espect to a specific list of 63 tariff lines (HS 8-digit) in 
Table 12, which were being imported into its territory in increased qua ntities, absolute or relative to 
domestic production.  Lao PDR explai ned that, during the transition period and despite the lack of 
previously established procedures as required by Ar ticle 3.1 of the WTO Agreement on Safeguards, 
Lao PDR would generally only take action in conformity with the provisions of the WTO Agreement 
on Safeguards, in particular with respect to the n eed to conduct an investiga tion which allowed for all 
interested parties to present their views and evid ence, and notification to the WTO upon initiating an 
investigatory process, prior to imposing a measure.  He also confirmed that his Government would not 
apply any anti-dumping or counter vailing measures until it had notifie d and implemented appropriate 
laws in conformity with the provisions of the WT O Agreements on the Implementation of Article VI 
of the GATT 1994, and on Subsidies and Countervailing Measures.] 
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
96. The representative of Lao PDR said that e xport duties were levied on some products, 
enumerated in Table 13.  This list had been revised  to include all products currently subject to export 
duties. The list had been adopted by the Governme nt and was expected to be approved by the 
National Assembly by June 2012.  He added that  the export duties on sawn wood and logs had been 
abolished and a stumpage fee was collected on all logs, whether for domestic consumption or for 
export.  Export duties were collected for revenue purposes contributing, 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 re maining duties.  Exports were exempt from the 
application of internal taxes such as the turnove r tax.  The requirements and procedures for business 
entities wishing to engage in exportation were the same as those applicable to importation.   
97. Asked to commit not to introduce export duties on products not included in Table 13, the 
representative of Lao PDR reiterated the importance of export duties to government revenue and the 
need to maintain this measure for development pur poses.  Lao PDR intended to apply export duties to 
a limited number of products.  He took note of Me mbers' suggestion of applying alternative measures 
that could foster the production of those domestic products subject to export duties.  However, he 
stated that Lao PDR had limited possibilities to fost er value-added production an d/or revenue sources.  WT/ACC/SPEC/LAO/5 
Page 34  
 
  He added that Lao PDR would comply with GA TT 1994 and WTO provisions with regard to export 
duties.   
Table 13:  Export Duties 
No. Product Rate of export duty (%) Legal basis 
1. Livestock 5  
2. Coffee 5  
3. Electricity 20  
4. Semi-finished wooden products  Prime Minister Decree 
No. 187/PM of 
21 October 1994; Minister Instruction 
No. 230/MOF of 
4 March 1995. - lumber 40 
- parquet 40 
5. Finished wood products  
- plywood 3 
- Export restrictions 
98. The representative of Lao PDR said that most goods exported from Lao PDR were not subject 
to any licensing arrangements or restrictions.  Fo r goods subject to export prohibition or licensing, 
Decree No. 114/GOL "On Export and Import of Goods " of 6 April 2011 provided the legal basis for 
the controls, and the specific goods subject to e xport prohibition and licensing were described in 
Notifications of the Ministry of Industry and Commerce.  The most recent list of goods subject to export prohibition contained in Notification No. 0973/MoIC.DIMEX "On Prohibited Goods on 
Import or Export" of 25 May 2011 (Table 14).  G oods subject to non-automatic and automatic export 
licensing were listed in Notification No. 0076/MOIC .DIMEX "On the List of Goods subject to 
Automatic and Non-automatic Import-Export Licensi ng" of 13 January 2012 (Tables 15 and 16).  
The export restrictions were applied to protect nati onal security; public order; human, animal or plant 
life and health; articles of artistic, historic and archae ological value; or to cons erve exhaustib le natural 
resources and were, in his view, in conformity  with Articles XX and XXI of the GATT 1994.  
According to Decree No. 114/GOL "On Import and Export of Goods" of 6 April 2011, the licensing procedures set out in Decree No. 180/PM "On Import Licensing Procedures" of 7 July 2009 were also 
applicable to export licensing.  
99. 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.    WT/ACC/SPEC/LAO/5 
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  100. In response, the representative of Lao PDR sa id that mines and forests were exhaustible 
natural resources requiring conservation.  The expl oitation of natural forest was in principle 
forbidden.  A ban on the exploitation of logs and ot her forestry products from natural forests had been 
in place.  Therefore, he considered that the export restrictions on logs and other forestry products from 
natural forests could be justifie d under Article XX(g) of the GATT 1994.  He added that the previous 
export prohibition on logs and othe r forestry products had been terminated and replaced by export 
licensing regime (see Notification No. 0076/MOIC.DIMEX).   
- Export subsidies 
101. 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.   
102. Some Members noted that Lao PDR was reserving its rights to special and differential 
treatment as an LDC under Article 27 of the WTO Agreement on Subsidies and Countervailing 
Measures (ASCM), and that Lao PDR appeared to  have included 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 implementing Decree Nos. 300/PM and 301/PM 
(Article 15 and Annex 2).  As Ar ticle 25 of the ASCM obliged WTO Members to notify all subsidies, 
including prohibited subsidies contingent upon e xport or the use of domestic over imported goods, 
Lao PDR was requested to submit such a docum ent to the Working Party for review.   
103. In reply, the representative of Lao PDR su bmitted a draft notification for the period 
2008 to 2010 in document WT/ACC/LAO/19.  Inform ation was provided on subsidies, prohibited or 
otherwise.  The notification included particulars of the incentives contingent upon export performance 
requirements in the domestic and foreign invest ment legislation (Law Nos. 10/NA and 11/NA, 
Decree Nos. 300/PM and 301/PM); and in the bor der trade zones and special economic zone 
(Decree Nos. 25/PM, 162/PM and 177/PM - see section on "Free zones").  As an LDC, he reiterated that Lao PDR reserved its right to avail of the flexibilities in the ASCM on the use of export 
performance requirements.  The existing export perf ormance (and local content) requirements in the 
investment regime, however, had been eliminated  and replaced by incentives provided pursuant to 
Law No. 02/NA "On Investment Promotion" of 8 July 2009.     WT/ACC/SPEC/LAO/5 
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  C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 104. The representative of Lao PDR said that Lao PDR had formulated an Industry-Handicraft 
Development Plan for the period 1996 to 2005 covering the manufacturing industry, cottage and 
handicraft industries, power generation, mini ng, agro-processing industries, textiles and the 
production of construction materials.   Encouragement of key industri es and exports were priorities in 
the Sixth Five-Year Development Plan for the period 2006 to 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.  
Prime Minister Decree No. 443/PM "On Specific and Special Economic Zone in Lao PDR" was 
adopted on 26 October 2010.  The Decree further elaborated the provisions of Article 59 of 
Law No. 02/NA "On Investment Promotion" and sti pulated principles, regulations, establishment, 
operation and other policies regarding specifi c and special economic zones in Lao PDR. 
105. 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, which was revised and adopt ed by the National Assembly in December 2011, 
stated that the sector sought to increase foreign i nvestment in production, distribution, exportation,  WT/ACC/SPEC/LAO/5 
 Page 37 
 
 
  importation and the development of this sector.  He  added that Lao PDR currently had no specific 
plan for foreign investment in the energy sector.  
106. 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 Prom otion of Foreign Investment" (Article 18); 
Decree No. 300/PM "Regarding the Implementation of the Law on the Promotion of Domestic 
Investment"; Decree No. 301/PM "Regarding the Im plementation of the Law on the Promotion of 
Foreign Investment" (Article 34 and Annex 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 
invited to use the format of document G/SCM/6/Rev.1 to provide a subsidy notification.  
Lao PDR was requested to (i) identify clearly the subsidies contingent on the use of domestic over 
imported goods in the manufacturing process for whic h it would seek a transition period; (ii) provide 
an action plan to the Working Party with a date cer tain for the elimination of such subsidies; and 
(iii) commit to comply with the obligation unde r Article 25 of the ASCM, as a WTO Member, to 
notify all subsidies, including prohibited subsidies co ntingent upon export or the use of domestic over 
imported goods.  Some Members stressed that LD Cs were exempted from the prohibition of export 
subsidies, but not from the prohibition of local c ontent subsides, and Lao PDR should therefore, in 
their opinion, commit to eliminate all local c ontent requirements by the date of accession.   
107. 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 lo cal content requirements in Lao's investment 
legislation.  The new Decree No. 443/PM "O n Specific and Special Economic Zone" of 
26 October 2010 provided for an exhaustive list of in centives available in those zones, which, in his 
view, were in compliance with the SCM Agreement.   Decree No. 162/PM "On Border Trade Zone at 
Boten, Louangnamtha Province" had been terminated.  He added that the local content requirement in 
the remaining zones Savan-Seno Special Econom ic Zone (Decree No. 177/PM) and Dansavanh 
Village Border Trade Zone (Decree No. 25/PM) would be eliminated by February 2012.  In response WT/ACC/SPEC/LAO/5 
Page 38  
 
  to a specific question on Article 99 of the new In vestment Promotion Law No. 02/NA, he said that 
upon entry into forces of the new law, investors cove red by the previous investment law could choose 
between receiving benefits granted by the new or  old incentive programmes.  However, even when 
the old incentive programme was chosen, companies we re no longer required to comply with the local 
content requirement.  He added that as the local  content requirement had actually never been 
enforced, the government did not have further info rmation on the total number of companies that 
benefitted from the old programmes.  He confirmed that no local content requirements were currently 
imposed.  A Prime Minister's decree would be adopt ed by February 2012 to officially repeal all 
existing local content requirements. 
108. [The representative of Lao PDR confirmed that, as of the date of Lao PDR's accession to the 
WTO, the programme that provided investment ince ntives contingent upon the use of domestic over 
imported goods for domestic businesses and forei gn-invested enterprises was no longer valid.  
He noted that Lao PDR as a Least Developed C ountry was entitled under the Article 27.2(a) of the 
WTO Agreement on Subsidies and Countervailing Measures.   He also confirmed that, by the date of 
accession, a subsidy notification, in accordance with Article 25 of the Agreem ent, would be provided 
to the Committee on Subsidies and Countervailing M easures.  The Working Party took note of these 
commitments.]    
- Technical barriers to trade,  standards and certification 
109. The representative of Lao PDR said that the new Standardization Law No. 13/NA of 
26 December 2007, which replaced the Decree of th e Prime Minister No. 85/PM "On Management of 
Standards and Quality of Produc ts and Goods" of 2 November 1995, constituted the basic legal 
framework for Lao PDR's present system of sta ndards, technical regulations and conformity 
assessment.  Amongst the relevant regulations in this  area he pointed to the 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 Control 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 G oods" of 17 July 2009; Regulation No. 519 
"On Labelling of Pre-packaged Food" of 18 March 2009; Regulation No. 336/NSC NAST 
"On Organization and Activities of Centra l Technical Committee" of 22 October 2010;  and Decision 
No. 235/PMO-NAST "On the Organization and Activ ities of the National Standards Council" of 
3 February 2010.  Law No. 07/NA "On Metrolog y" was adopted by the National Assembly on 
20 December 2010.   WT/ACC/SPEC/LAO/5 
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  110. He provided a checklist of illustrative TBT issues in document WT/ACC/LAO/6 and 
its Revisions; and an action plan for the impl ementation of the WTO Agreement on Technical 
Barriers to Trade (TBT Agreement) in documen t WT/ACC/LAO/14 and its Revisions (Table 17).  
According to the timelines set out in the Action Plan, Lao PDR had completed the re-assessment of 
the institutional, legal and regulatory framework in June 2011.  Suggestions had been made on how to 
ensure the compliance of the technical regulations, standards and conformity assessment procedures 
with regional and international obligations.  The Implementation of the Law on Standardization and 
the preparatory work for the TBT Enquiry Points had been identifi ed as the key actions.  The Draft 
Decree "On the Implementation of the Law on Standard ization" had been endorsed by Ministry of 
Justice in January 2012 and would be adopted  by Prime Minister by March 2012.  Decree 
No. 363/PM "On Notification and Enquiry of Trade Related Information" was adopted on 
19 August 2010.  The notification unit and Enqui ry points would be operational upon accession.  
The re-assessment had also identified shortcomi ngs of existing institutional set-up and capacity 
constraints.  These deficiencies were the main reas on for Lao PDR to request the transition period and 
technical assistance.  With tec hnical assistance being provided and additional assistance being sought, 
Lao PDR would ensure that its legal framework on technical regulations, standards and conformity 
assessment was in compliance with the TBT Agreement by 31 Decemb er 2012.  The representative of 
Lao PDR envisaged full implementation of th e TBT Agreement by 31 December 2014.  
Table 17:  Action Plan for the Implementation of the WTO TBT Agreement 
Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
1. TBT related 
activities Reassessment of the Institutional, 
Legal and Regulatory Framework for TBT. Launched in January 
2011 and completed in June 2011 TA received from Trade 
Development Facility (TDF). 
2. Institutional 
strengthening activities Medium to Long-Term Institutional 
Development Strategy for Quality Infrastructure. Ongoing, and under 
brain storming process TA to be requested from 
TDF and USAID. 
3. Technical 
regulations Law on Standardization, No. 13/NA, 
dated 26 December 2007. Adopted in 
December 2007 TA received from EU and 
UNIDO (ended in 2008). 
Decree on the Implementation of the Law on Standardization. The draft was 
endorsed by Ministry of Justice in January 2012 and to 
be adopted by Prime 
Minister by March 2012. TA received from USAID 
and TDF. 
Regulation on Quality Inspection of Goods, No. 1226/PMO-NAST, dated 17 July 2009. Adopted in July 2009  WT/ACC/SPEC/LAO/5 
Page 40  
 
  Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
Regulation on Basic Principles in Application of Sanitary and Technical Measures in Food Safety Management in accordance with the SPS Agreement, No. 518/MoH, dated 18 March 2009. Adopted in 
March 2009 Recommendations received 
from FAO and WHO.  TA received from TDF for publication, dissemination and training for all stakeholders. 
Regulation on Labelling of Pre-Packaged Food, No. 519/MoH, dated 18 March 2009. Adopted in 
March 2009 TA received from WHO on 
drafting. 
Code of Practice for Technical Regulations. To be drafted by 
April 2012 TA to be requested from 
USAID. 
Regulation on Food Inspection (formerly referred to as Regulation on Food Control System). Regulation being 
drafted by MOH and to be adopted by March 2012 TA received from TDF, 
FAO legal expert has been employed for finalizing the regulation. 
4. Standards Law on Standardization, No. 13/NA, 
dated 26 December 2007. Adopted in 
December 2007 TA received from EU and 
UNIDO (ended 2008). 
Decree on the Implementation of the 
Law on Standardization. The draft was 
endorsed by Ministry of Justice in January 2012 and to be adopted by Prime Minister by March 2012 TA received from USAID 
and TDF. 
Regulation on the Use of Standard Mark for Lao Products, No. 1718/ PMO-NAST, dated 7 August 2006. Adopted in 
August 2006 TA received from EU and 
UNIDO. 
Decision on the Organization and Activities of the National Standards Council, No. 235/PMO-NAST, dated 
3 February 2010. Adopted in 
February 2010  
Regulation on Organization and 
Activities of Central Technical Committee, No. 336/NSC NAST, dated 22 October 2010. Adopted in 
October 2010  
5. Conformity 
Assessment Law on Standardization No. 13/NA 
dated 26 December 2007. Adopted in 2007 TA received from EU and 
UNIDO (ended in 2008). 
Decree on the Implementation of the Law on Standardization. The draft was 
endorsed by Ministry of Justice in January 2012 and to be adopted by Prime Minister by March 2012 TA received from USAID 
and TDF. 
Law on Metrology, No. 07/NA, dated 20 December 2010. Adopted in 
December 2010 Technical review by 
UNIDO Experts. 
Lao PDR joined MRA under ASEAN for Electrical and Electronic Equipment.  5 April 2002  
Establishment of testing facilities for 
construction materials, textiles and chemicals. Deferred TA to be requested.  WT/ACC/SPEC/LAO/5 
 Page 41 
 
 
  Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
6. Information 
Procedures Decree on Notification and Enquiry 
of Trade Related Information,  No. 363/PM , dated19 August 2010. Adopted in 
August 2010 TA received from EU on 
drafting and received from USAID and ADB for implementation. 
Establishment of TBT Enquiry Point under Decree on Notification and Enquiry of Trade Related Information No. 363/PM dated 19 August 2010   Decision on TBT Enquiry Point, No. 1199/ PMO-NAST, dated 22 June 2011 was adopted to strengthen coordination among notification unit, enquiry points and relevant authorities. 
 
 Address of TBT Enquiry Point:   Department of Standardization and Metrology, Ministry of Science and Technology;  PO Box 2279, Vientiane Capital, Lao PDR. Tel/Fax:  85621-243405 Email: enquiries@laostbt.gov.la  (To be operational upon accession) Operational upon 
accession     Adopted in June 2011 TA received from USAID 
and ADB for implementation.    TA received from USAID. 
Establishment of SPS and TBT Notification Unit under Decree on Notification and Enquiry of Trade Related Information No. 363/PM dated 19 August 2010   Decision on SPS and TBT Notification Unit, No. 0471/MOIC, dated 9 March 2011   Address of SPS and TBT 
Notification Unit:   
Foreign Trade Policy Department, Ministry of Industry and Commerce.  P.O. Box 4107, Phonexay Road, Vientiane Capital, Lao PDR Tel: 85621-450065 Fax: 85621-450066  Website: www.laoftpd.com   Operational upon 
accession     Adopted in March 2011 TA received from USAID 
and ADB for implementation, e.g. establishment of database, training of relevant staff on the SPS and TBT Agreements including through exchange experiences and study visit. 
 
 
111. 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 WT/ACC/SPEC/LAO/5 
Page 42  
 
  IEC-APRC Affiliate Country Programme in 2002 a nd was a member of the Asia Pacific Legal 
Metrology Forum (APLMF).  The development of st andards and technical regulations followed the 
ACCSQ principles as stipulated in his Government's National Master Plan No. 1352/PM.DS of 
11 August 2000 for the "Development of Standard s and Conformity Assessment in Lao PDR".  
Standards and technical regulations  were developed in consultation with the principal governmental 
stakeholders and the private sector, and - for st andards - 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 adopted as nationa l standards and notified to the IEC-APRC-ACP. 
112. The Ministry of Science and Technology (MoST) - formerly the National Authority for 
Science and Technology - was the central manageme nt agency for work on TBT-related matters.  
For matters dealing with food and drugs, the Food and Drug Administration Committee under the 
Ministry of Public Health was the responsible agency.  Under the auspices of MoST, 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 
(Decision No. 235/PMO-NAST "On the Organizati on and Activities of the National Standards 
Council" of 3 February 2010).  The Central Tec hnical Committee was also established to provide 
technical support to the Standard Council on adopting new technical regulations and standards.  Once 
finalized, the National Standards Council would fo rward the proposal to the MoST for approval.  
Approved technical regulations, sta ndards, or conformity assessment procedures were published in the 
official gazette (Government Journal) and other media.   
113. He said that Lao PDR would further meet the tr ansparency obligations of the TBT Agreement 
in the development of standards and technical regulations with the a doption and implementation 
of Decree No. 363/PM "On Notification and Enquiry of Trade Related Information" of 19 August 2010.  The Decree allowed for public revi ew and a reasonable timeframe for comments in 
the preparation of draft TBT (and SPS) laws and regulations.  The E nquiry Points and the Notification 
Unit would be fully operational from the date of accession.  According to Decree No. 363/PM, the 
single TBT Enquiry Point would be located in the Department of Standardization and Metrology of 
the Ministry of Science and Technology; and the No tification Unit, responsible for the submission of 
WTO notifications, would be established in the Fore ign Trade Policy Department of the Ministry of 
Industry and Commerce. 
114. The representative of Lao PDR noted that Ministerial Decision No. 1199/NAST-PMO 
"On the Organization and Operation of Technical Barriers to Trade (TBT) Enquiry Point (EP)" of 
22 June 2011 and Decision No. 0471/MIOC "On the Notification Unit of SPS and TBT" of  WT/ACC/SPEC/LAO/5 
 Page 43 
 
 
  9 March 2011, had been adopted as the impl ementing regulations of Decree No. 363/PM.  
These regulations would strengthen coordination among notification unit, enquiry point and relevant 
authorities.  Supported by the Asian Developmen t Bank (ADB), USAID, and Trade Development 
Facility (TDF), capacity building programs and a public awareness campaign had been conducted to 
ensure the effective operation of the Notificati on Unit and Enquiry Points.  Technical assistance 
included developing regulations a nd operational manuals, training of staff, developing websites, and 
providing necessary equipment.  He stressed that fu rther technical assistance was needed to ensure 
that Lao PDR could fully implement the transparency  provisions of the TBT Agreement.  The contact 
details of the TBT Notification Unit and Enquiry Point were:  
SPS and TBT Notification Unit: 
Foreign Trade Policy Department  
Ministry of Industry and Commerce P.O. Box 4107, Vientiane Capital, Lao PDR Tel:   85621-450065 
Fax:   85621-450066 
Website:  www.laoftpd.com  
TBT Enquiry Point: 
Department of Standard ization and Metrology 
Ministry of Science and Technology 
PO Box 2279, Vientiane Capital, Lao PDR 
Tel/Fax:  85621-243405 Email:   enquiries@laostbt.gov.la 
115. Lao PDR was asked to elaborate the policy-ma king process in the TBT area and how it would 
ensure participation of foreign stakeholders.  Th e representative of Lao PDR stated that foreign 
stakeholders participated in the consultative m echanism through the Standard Council and the Central 
Technical Committee.  In addition, Article 3.4 of the newly adopted Decree No. 363/PM 
"On Notification and Enquiry of Trade Related Information" provided that, before adopting a 
TBT measure, all interested par ties, both domestic and foreign, would be allowed to submit comments 
on the draft measures, for a period of at least 60 da ys.  The Decree also stipulated that all adopted 
technical regulations and standards, and other TB T measures should be publ ished 180 days before 
their enforcements, except in  urgent circumstances.  
116. 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, including for c onstruction materials, textiles and chemicals 
(Regulation No. 1226/PMO-NAST "On Quality Inspection of Goods").  The quality attestation should 
be accompanied by a certificate from a testing laboratory accredited by the national standardization WT/ACC/SPEC/LAO/5 
Page 44  
 
  body in the exporting country.  The procedure fo r imported steel bars, cement, and petrol was 
stipulated in Regulation No. 1036/STEA-PMO, and fo r food and drugs in Regulation No. 586/MOH.   
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 2009 w ith respect to food products.  He added that 
Lao PDR implemented mutual recognition arrange ments (MRAs) on conformity assessment through 
recognising test reports issued by testing labor atories accredited by National Accreditation Bodies of 
ASEAN members that were signatories to the MR As of International Laboratory Accreditation 
Cooperation.  Lao PDR joined ASEAN MRA for El ectrical and Electronic Equipment in 2002 and 
was working toward harmonization of regulatory regime  in electrical and electronic sector by 2010.  
The MoST was in the process of adopting the IEC International Standards and to establish the 
Lao National Accreditation Bureau (LNAB).  He stated that Lao PDR's long-term goal was to participate in MRAs of International Laborator y Accreditation Cooperation (ILAC) and International 
Accreditation Forum (IAF).  Even though Lao PDR had not participated in these MRAs, it recognized 
accreditation by those international systems of conformity assessment and accepted conformity assessment of exporting countries that were participants in these arrangements.   
117. 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 to the obligations of the TBT Agreement. 
118. 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 
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 to 30 and 47), harmonization with international 
standards (Articles 7, 19 and 44); and the concep ts of equivalence and mutual recognition.  
According to Article 20 of the Law, all standard s were voluntary unless specifically indicated in the 
relevant regulations.  An implementing decree for the Law on Standardization was in preparation and 
envisaged to be approved by the Government by March 2012.  With the adoption of the Decree, all  WT/ACC/SPEC/LAO/5 
 Page 45 
 
 
  other regulations on standards and related matters in conflict with the Law or its implementing Decree 
would be replaced or annulled.   
119. [The representative of Lao PDR stated that Lao PDR would progressively implement the 
WTO Agreement on Technical Barriers to Trade in accordance with the action plan set-out in Table 
17.  Full implementation would start from 1 January 2015 without recourse to any further transitional 
period.  The Working Party took note of this commitment.] 
- Sanitary and phytosanitary measures 
120. 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 (IPPC).  The SPS regula tions and standards of Lao PDR were based on 
the relevant international standard s, guidelines and recommendations.   
121. 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 to all 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 WTO Agreement on the Application of Sa nitary and Phytosanitary Measures (the 
SPS Agreement).   
122. 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 on Fisheries No. 03/NA of 
9 July 2009; the Law No. 01/98NA "On Agriculture" of 10 October 1998; National Policy on Food 
Safety No. 028/PM of 3 February 2009; Decree No . 66/PM "On Plant Quarantine" of 21 March 1993; 
Decree No. 85/PMO "On Livestock Management in Lao PDR" of 31 May 1993; Decree No. 363/PM 
"On Notification and Enquiry of Trade Related Information" of 19 August 2010; Ministerial 
Regulation No. 0639/MAF "On the Quarantine of Plants  in the Lao PDR" of 2 July 1993; Regulation 
No. 0004/MAF "On Livestock Management in Lao PDR" of 2 January 1997; Instruction 
No. 0005/MAF for the Regulation on Livestock Management in Lao PDR of 2 January 1997; 
Ministerial Regulations No. 0719/MAF "On the Mana gement and Use of Planting Material and Seeds WT/ACC/SPEC/LAO/5 
Page 46  
 
  in Lao PDR" of 3 December 1997; Ministerial Regulation No. 0886/MAF "O n Management and Use 
of Pesticide in Lao PDR" of 10 March 2000;  Regulation No. 586/MOH "On the Control on 
Production, Exported-Imported Safe Food" of 12 Ma y 2006; Regulation No. 518/MOH "On the Basic 
Principles in the Application of Sanitary and T echnical Measures for the Food Safety Management" 
of 18 March 2009; Ministerial Decision No. 2860/MA F "On Control of Pesticides in Lao PDR" of 
11 June 2010 (formerly referred to as the Regulati on on Pesticide Management); Ministerial Decision 
No. 0870/MAF "On Animal Slaughtering and Anim al Product" of 18 March 2011; Ministerial 
Decision No. 605/MOH "On Adopting Codex Alimentari us Standards as Priorities" of 27 April 2011; 
and Technical Norms No. 0313/MAF "On Livest ock Management in the Lao PDR" of 
21 January 2000. 
123. At the central level, the key governmental agencies involved in the elaboration of 
SPS measures were the Ministry of Agriculture and Forestry - the Department of Agriculture for 
plant health and the Department of Livestock and Fisheries for animal health; and for food safety the 
Ministry of Public Health - the Department s of Food and Drug and of Hygiene and Disease 
Prevention.  The two Departments of the Ministry  of Public Health worked on food safety issues 
under the supervision of the Food and Drug Adviso ry Committee.  The Committee was made up of 
representatives of the Ministries of Industry and Co mmerce, Agriculture and Forestry, and Public 
Health, and was chaired by the Department of Food  and Drug.  The implementation of food safety and 
animal and plant health policies wa s carried out by provincial and local  authorities in the 16 provinces 
and in Vientiane Capital, e.g. the provincial H ealth Offices and the provincial Agriculture and 
Forestry Offices.   
124. He added that in order to comply with the SPS Agreement, Lao PDR would need to improve 
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 Revisions), the principles of the Agreement regarding 
science-based regulations, measures based on necessi ty, equivalence, and non-discrimination would 
be fully incorporated in domestic regulations, includ ing for measures affecting animal or plant health.  
He provided an action plan for the implementation of the SPS Agreement in document 
WT/ACC/LAO/13 and its Revisions (Table 18).  As per the Action Plan, Lao PDR also intended to 
amend or promulgate new decrees or  regulations on food inspection; movement control of livestock; 
animal disease control; livestock production and vete rinary business; general regulation on plant and 
animal administration; plant inspection and certif ication; plant protection and quarantine; and 
complete work on the identification of pest and di sease free areas.  The transparency provisions of 
the Agreement would also be addressed, and steps were being taken to operationalize the SPS Enquiry  WT/ACC/SPEC/LAO/5 
 Page 47 
 
 
  Point and Notification Unit by the date of accessi on.  The representative of Lao PDR stated that 
Lao PDR would ensure its legal framework on food safety, animal and plant health to be in 
compliance with the SPS Agreement by 31 D ecember 2012.  Full implementation of the 
SPS Agreement would be achie ved by 31 December 2014. 
Table 18:  Action Plan for the Implementation of the SPS Agreement 
Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
1.  Food Safety Regulation on Bottled Drinking 
Water, No. 585/MoH, dated 12 May 2006 Adopted in May 2006 TA including 
recommendations received from FAO and WHO. 
Regulation on Production, Exported-Imported Safe Food, No. 586/MoH, dated 12 May 2006 Adopted in May 2006 TA including 
recommendations received from FAO and WHO. 
National Policy on Food Safety, No. 028/PM, dated 3 February 2009 Adopted in 
February 2009 TA including 
recommendations received from FAO and WHO.  TA received from Trade Development Facility (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, No. 518/MoH, dated 18 March 2009  Adopted in March 2009 Recommendations received 
from FAO and WHO.  TA received from TDF for publication, dissemination and training for all stakeholders. 
Regulation on Labelling of Pre-Packaged Food, No. 519/MoH, dated 18 March 2009  Adopted in March 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 and to be adopted by March 2012 TA received from TDF, FAO 
legal expert has been employed for finalizing the regulation. 
Regulation on Food Additives Adopted under 
Ministerial Decision on Adopting Codex Alimentarius Standards as Priorities, No. 605/MoH, dated 27 April 2011 TA to be requested from TDF 
for translation, publication, training and implementation. 
Ministerial Decision on Adopting 
Codex Alimentarius Standards, 
No. 605/MoH, dated 27 April 2011 Adopted in April 2011 TA to be requested from TDF 
for translation, publication, 
training and implementation.  
National Association of Testing Authority (NATA)'s assessment on ISO 17025 accreditation for microbiology testing laboratory Started in 2009 
 Ongoing TA received from UNIDO. WT/ACC/SPEC/LAO/5 
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  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
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. 
2.  Animal Health Law on Livestock Production and 
Veterinary, No. 03/NA, dated 25 July 2008  Adopted in July 2008 Recommendations received 
from FAO and EU.  TA received from FAO and TDF for publication, dissemination and training for all stakeholders. 
Law on Fisheries, No. 03/NA, dated 9 July 2009 Adopted in July 2009 TA received from TDF for 
publication, dissemination and training for all stakeholders. 
Ministerial Decision on Animal Slaughtering and Animal Product Inspection, No. 0870/MAF, dated 18 March 2011  Adopted in March 2011 Recommendations received 
from EU. 
Amendment of Decree on Livestock and Livestock Products Movement Control  The draft is reviewing 
by MoJ and to be sent to GoL by March 2012 Recommendations received 
from EU and USAID. 
The amendment of Decree on Animal Epidemic Diseases To be adopted by 
March 2012 Recommendations received 
from EU and USAID. 
Establishment of a diagnostic laboratory Completed in 
December 2011 BSL.3 system is being installed.  Equipment moved in from the old laboratory. Implementation funding 
requested from the World Bank. 
Identification of animal disease free areas  Regulation on Establishment of Animal Disease Free Area or Compartmentalization  The draft has been 
prepared in November 2011  ADB and World Bank under 
process of designing programme to get accreditation from OIE, and the inputs from international expert for the draft is to begin in April 2012. 
Regulation on Principles in the Application of SPS Measures in Plant 
and Animal Administration, 
No. 0039/MAF, dated 11 January 2012  Adopted in 
January 2012 TA received from USAID.  
Regulation on Criteria for Livestock 
Production and Veterinary Business  To be drafted by 
June 2012 and to be adopted by October 2012 TA received from TDF, FAO 
legal expert has been employed.  
3.  Plant Health Law on Plant Protection and 
Quarantine, No 06/NA, dated 9 December 2008  Adopted in 2008 Recommendations received 
from FAO legal experts, practices of neighbouring countries. TA received from TDF for publication, dissemination, translation and training for all stakeholders.  WT/ACC/SPEC/LAO/5 
 Page 49 
 
 
  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Decree on Implementing on Plant Protection and Quarantine (formerly referred to as Regulation on Plant Quarantine)  To be adopted by 
March 2012 TA received from TDF for 
dissemination. 
Regulation on Good Agriculture Product Adopted in 2010  
Guideline on Inspection and 
Certification Procedures for Plants, Plan Products and Related Articles (formerly refers to as the Regulation on Plant Inspection and Certification). To be started June 2012 TA received from TDF, FAO 
legal expert has been employed. 
Establishment of a laboratory on plant diseases and pests Deferred No funding.  
Identification of pest and disease free 
areas Deferred No funding. 
Ministerial Decision of on Control of 
Pesticides in Lao PDR, No. 2860/MAF of 11 June 2010 (formerly referred to as the Regulation on Pesticide Management) Adopted in 2010 TA requested from TDF for 
translation and publication.  
4.  Information Procedures Decree on Notification and Enquiry 
of Trade Related Information, No. 363/PM, dated 19 August 2010 (formerly referred to as Decree on the SPS and TBT Notification Centre and Enquiry Points) Adopted in 
August 2010 TA received from EU on 
drafting and received from USAID and ADB for implementation. 
Establishment of SPS Enquiry Point under Decree on Notification and Enquiry of Trade Related Information 
No. 363/PM 
 Decision on SPS Enquiry Point, No. 1502/MAF, dated 23 June 2011 was adopted to strengthen coordination among notification unit, enquiry points and relevant authorities. 
 Address of SPS Enquiry Point:  Department of Planning, Ministry of 
Agriculture and Forestry  PO Box 811, Vientiane Capital,  
Lao PDR 
Tel: 85621-415363 
Fax: 85621-412343 
Email: enquiries@laossps.gov.la   (To be operational upon accession) Operational upon 
Accession  
 
 Adopted in June 2011 TA received from USAID and 
ADB for implementation.  
 
TA received from USAID. WT/ACC/SPEC/LAO/5 
Page 50  
 
  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Establishment of SPS and TBT Notification Unit under Decree on Notification and Enquiry of Trade Related Information No. 363/PM  Decision on SPS and TBT Notification Unit No 0471/MOIC, 
dated 9 March 2011 
 Address of SPS and TBT Notification Unit: Foreign Trade Policy Department, Ministry of Industry and Commerce.  P.O. Box 4107, Phonexay Road, Vientiane Capital, Lao PDR Tel:  85621-450065 Fax: 85621-450066  Website:  www.laoftpd.com   Operational upon 
Accession    Adopted in March 2011 TA requested from USAID 
and ADB for implementation, e.g. establishment of database, training of relevant staff on the SPS and TBT Agreements including through exchange experiences and study visit. 
 
125. Having examined the information and the previ ous versions of the SPS Action Plan submitted 
by Lao PDR, some Members requested more deta iled information concerning how Lao PDR intended 
to develop its legal framework to incorporate th e basic principles of the SPS Agreement and apply 
measures in conformity with the Agreement with re spect to food 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 ela borate further on its technical assistance needs to 
finalize its legislation, and enhance the institutiona l capacity and laboratory build-up.  Members also 
sought clarifications on specific SPS measures and po licies; in particular, stakeholder participation 
and communication in drafting risk assessments.  
126. In reply, the representative of Lao PDR noted that, in the area of food safety, all the basic 
principles of the SPS Agreement such as necessity , non-discrimination, transparency, science-based 
regulations, risk assessment, harmonization, and equi valence had been incorporated in national laws 
and regulations, specifically in the 2004 Food Law 04/NA of 15 May 2004; the National Policy on 
Food Safety No. 028/PMO of 3 February 2009;  and Regulation No. 518/MOH "On the Basic 
Principles in the Application of Sanitary and T echnical Measures for the Food Safety Management" 
of 18 March 2009.  Ministerial Decision No. 605/ MOH "On Adopting Codex Alimentarius Standards 
as Priorities" of 27 April 2011 provided the basis for the adoption of new food standards based on the standards of the Codex Alimentarius.  On animal and plant health, the requirements contained in the 
SPS Agreement were incorporated in Decision No . 0039/MAF "On Principles in the Application of 
SPS Measures in Plant and Animal Administration" of  11 January 2012.  He believed that the laws, 
decrees and regulations provided for in the SPS Action Plan (Table 18) would provide a  WT/ACC/SPEC/LAO/5 
 Page 51 
 
 
  comprehensive legal basis for Lao PDR to comply with all the requirements of the SPS Agreement 
and relevant international standards.   
127. On food safety, he further explained that the National Policy on Food Safety No. 028/PMO 
reiterated that the standards of Lao PDR should adhere to standard s, guidelines and recommendations 
developed by the relevant intern ational organizations, including C odex Alimentarius, IPPC and the 
OIE, and comply with the SPS and TBT Agreements .  In addition, key components of the Policy 
included the implementation of food safety through laws, regulations and standards; use of risk 
analysis (with stakeholder participation limited to risk communication and risk assessment - where data was accessible - for an objective science-based evaluation of risk); adoption of an Integrated 
Food Chain Approach; the promotion of greater intern ational co-operation in the area of food safety, 
and strengthening human and institu tional capacities.  Specific regula tions had been adopted for the 
production, import and export of safe food, for labelli ng of pre-packaged food, for food additives and 
for bottled drinking water.  The Manual on Good  Manufacturing Practices (GMP) and Hazard 
Analysis and Critical Control Points (HACCP) ha d been developed by the Department of Food 
and Drug.  The regulation on food insp ection would be adopted by March 2012. 
128. The representative of Lao PDR said that La o PDR accepted all Codex standards both for 
imported and domestically-produced goods.  However, due to limited resources and capacity constraints, it was difficult to transform all Codex st andards into the national standards.  Therefore, 
Lao PDR had identified a list of essential standards,  which were the priorities for consumer protection 
and domestic production management.  These standa rds applied only to local production to raise 
awareness and build capacity for local producers, so  as to ensure their production and processing 
related activities eventually meet with the requi rements of the Codex standards, guideline, and 
recommendations.   
129. In response to specific questions, he added th at the "reasonable risk assessment framework" in 
Regulation No. 518/MOH referred to the conventional risk assessment steps of hazard identification 
and characterization, exposure assessment and risk  characterization in food safety management.  
Lao PDR was currently seeking technical assistance in  developing the risk assessment methodology.  
Lao PDR would ensure enough participation of stak eholders in the risk analysis process through a 
rapid alert system within ASEAN, the INFOSAN ne twork of the WHO, and the future operation of 
the SPS and TBT Notification Unit and the SPS Enquiry Point.  In the absence of national standards, 
Codex Alimentarius standards were applicable w ith respect to food residues and contaminants, 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 PDR, had WT/ACC/SPEC/LAO/5 
Page 52  
 
  adopted Codex Alimentarius standards.  The SPS certification of those countries would be accepted 
by Lao PDR.  He added that La o PDR's general policy followed inte rnational standards and guidelines 
(Food Law, Article 13) and applied Codex Alimenta rius as the minimum required standards.  If a 
country imposed a standard, which resulted in a highe r level of sanitary or phytosanitary protection 
than provided for by Codex standards, Lao PDR would accept such standards.  In case a country 
adopted different standards than Codex standards, th e scientific justification was required.  He added 
that to evaluate and assess whether a trading partne r's standard was compliant with Codex standards, 
Lao PDR followed the SPS Committee Decision on Equi valence (G/SPS/19/Rev.2) in addition to the 
provisions of Article 4 of the SPS Agreement, and Guidelines on the Judgement of the Equivalences 
of Sanitary Measures Associated with th e Food Inspection and Certification Systems 
(CAC/GL 53-2003).  Applications of Good Manufact uring Practices (GMPs) and Hazard Analysis 
and Critical Control Points (HACCP) or HACCP-like syst em were also factors to be considered in the 
assessment process. 
130. In response to specific questions on food inspec tions, the representative of Lao PDR said that 
for imported food products, the documents, Certificat e of Analysis (COA), Health Certificate (HC), 
Good Manufacturing Practices (GMP), Hazard Analysis  and Critical Control Points (HACCP), issued 
by competent authority of exporting country, and te sting samples were required.  For domestically-
produced products, national sta ndards based on Codex standards, guidelines and recommendations 
had to be respected.  Domestic producers were re quired to prove compliance every 180 days through 
testing analysis.  Due to limited human and fina ncial resource, food inspections were normally 
conducted in cases of safety alerts or requests by consumers or other sources.  Lao PDR was in the 
process of drafting a regulation defining the procedures for food inspection for import goods and domestic production, based on Codex standards, guidelines and recommendations, and taking account 
of the non-discrimination principle between domestic  and foreign suppliers and the requirements of 
Article 8 and Annex C of the SPS Agreement.  He said that the new draft Decision on Food 
Inspection required the same inspection procedur es based on risk assessment for both imported and 
domestically-produced products.  A risk assessment  system, with all food products categorized 
according to their risk levels, would be introduced  in the new draft Decision on Food Inspection.  
Under the new draft Decision, the frequency of in spection had been defined by three food risk 
categories: A - high risk foods; B - medium risk foods; and C - low-risk foods.  The high risk foods would be subject to higher frequency of inspection.   The consignments accompanied by certificates of 
health issued by competent authorities of exporting countries and test reports from accredited laboratories in exporting countries would be subject to a lower frequency of inspection.  The Codex 
General Guidelines on Sampling had also been in corporated into the new draft Decision.  
The Decision on Food Inspection was expected to be adopted by March 2012.  Lao PDR was  WT/ACC/SPEC/LAO/5 
 Page 53 
 
 
  receiving technical assistance from FAO, WHO and UNIDO for developing legal framework, 
strengthening capacity building and equipping laboratory. 
131. A Member noted that the proposed documentati on requirements could be burdensome for its 
exporters.  The Member encouraged Lao PDR to c onsider introducing a food safety system targeting 
inspection resources based on risk assessment.  In r esponse, the representative of Lao PDR said that 
his Government would take appr opriate action in accordance with the Decision on the Implementation 
of Article 4 of the WTO Agreement on the Applica tion of Sanitary and Phytosanitary Measures and 
the Codex Guidelines for the Design, Operation, Assessment and Accreditation of Food Import and 
Export Inspection and Certification Systems, to ensu re that the certification requirement was justified 
by the risk to health or the risk of fraud or decep tion.  In addition, alternatives to certification would 
be considered wherever possible, in particular where the inspection system and requirements of an 
exporting country were assessed as being equivalent to  those of Lao PDR.  Bilateral or multilateral 
agreements, such as mutual recognition agreements or pre-certification agreements, would provide for dispensing with certification and/or the issuance of  certificates which were previously required in 
certain cases.   
132. He noted that Lao PDR continued to experi ence incidences of imported food and beverages 
having expired shelf life.  Regulation No. 519/M OH "On Labelling of Pre-packaged Food" defined 
the expiry or use-by date as the period after whic h the product, under any stated storage conditions, 
would not have the attributes expected by the consumer .  Some Member noted that the use of the term 
"nearly expired food" was inconsistent with Code x standards.  In response, the representative of 
Lao PDR said that Lao PDR followed labelling require ments as provided for by Codex standards in 
Regulation No. 519/MoH.  He noted that the "nearly  expired food" concept was only used to prevent 
importation of discounted food, whic h expired by the time of consumption and might cause health 
problems.  He added that Lao PDR was in the proc ess of reviewing the definition and would adapt its 
regulation accordingly. In response to a specific question, he confirmed that the labelling 
requirements do not apply to bulk fresh fruits and ve getables as indicated by Codex Standard 1-1985. 
133. A Member of the Working Party expressed c oncerns regarding the mandatory labelling 
requirement for genetically-engineered (GE) foods or food ingredients, as described in 
Article 5(1)(b)(ii) of the Regulation on Labelling of Pre-packaged Food.  The Member pointed out 
that such measure could be considered misl eading and requested Lao PDR to provide more 
information on the scientific rationale on which th e labelling requirement was to be based; the process 
of implementation; and, analytical methods a nd sampling procedure to be used.  The Member 
suggested that Lao PDR reconsidered this manda tory labelling requirement and instead introduced WT/ACC/SPEC/LAO/5 
Page 54  
 
  voluntary labelling or other means to provide meaningf ul information to consumers and to achieve the 
Government's objectives.  In response, the repr esentative of Lao PDR stated that the mandatory 
labelling requirement for GE food was an obliga tion of Lao PDR under Section 4 of the ASEAN 
Common Principles and Requirements for the Labelling of Pre-packaged Food.  Provisions to implement the ASEAN food safety framework would be  incorporated in the draft Regulation on Food 
Inspection, applying the specific procedure describ ed in paragraph 7.1 of the ASEAN Guidelines on 
Risk Assessment of Agriculture-Related Genetically Modified Organisms (GMOs) (see the answer to 
Question 100 of document WT/ACC/LAO/24). 
134. In the area of animal health, the represen tative of Lao PDR expected the 2008 Livestock 
Production and Veterinary Law and the 2009 Fisheri es 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.  He stated that Law No. 03/NA "On Livestock Production 
and Veterinary Matters (Articles 45, 46 and 47)"  of 25 July 2008 defined general provisions on 
animal quarantine.  The Ministerial Decision No . 0870/MAF "On Animal Slaughtering and Animal 
Product" was adopted on 18 March 2011.  In add ition, the amendments of Decree "On Livestock and 
Livestock Products Movement Control"  and Decree "On Animal Epidemic Diseases", as well as the 
new regulation "On Criteria for Livestock Producti on and Veterinary Business" were also being 
prepared to incorporate the key SPS principles, in cluding the transparency requirements, which would 
require all proposed regulations to  be notified and published before their adoption and enforcement.  
The test results can be obtained at the National Animal Disease Diagnostic Laboratory at National 
Animal Health Center (NAHC).  On regionalizati on determination, Lao PDR strictly followed OIE's 
standards, guidelines and recommendations.  While  the Regulation establishing animal disease-free 
area was still in preparation, Lao PDR automatica lly adapted its regulations in response to OIE 
announcements on a specific disease or disease-free area.  He added that Decision "On Principles in 
the Application of SPS Measures in Plant and Anim al Administration" of 11 January 2012 ensured 
that any trade restrictions would comply with the SPS Agreement in particular, Articles 2.1, 2.2, 2.3 
and 6.   
135. The representative of Lao PDR noted that due to  financial and human resources constraints, 
Lao PDR did not have any quarantine facilities at th e border checkpoints in place.  At the checkpoints, 
importers were required to provide  relevant documents and were s ubject to a physical inspection.  
Lao PDR, therefore, relied on exporting countri es to undertake quarantine inspections.    WT/ACC/SPEC/LAO/5 
 Page 55 
 
 
  136. In response to questions on specific SPS measures, the representative of Lao PDR said that 
Lao PDR currently did not have a specific policy on Bovine Spongiform Encephalopathy (BSE) in 
place.  The disease control policies were generally developed on a case-by-case basis.  In case of an 
outbreak of BSE, Lao PDR would follow the OIE recommendations and guidelines in taking BSE quarantine measures and/or imposing trade restric tions.  Regarding the po licy on pathogen reduction 
treatments (PRTs), he said that Lao PDR allowed the use of PRT on poultry to reduce contamination 
by salmonella.  At present, there was no specific "restrictions on which pathogen reduction treatments 
are used".  However, Lao PDR would generally  follow OIE recommended practices on salmonella 
control.  Lao PDR did not have an o fficial tolerance policy for salmonella. 
137. As for plant health, Law No. 06/NA "On Plant Protection and Plant Quarantine" had been 
adopted in December 2008.  A technical assistance  project 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 do cument WT/ACC/LAO/11, Annex 2.  As a member 
of IPPC, Lao PDR followed IPPC guidelines in the implementation of SPS measures. Plant inspection 
was conducted to analyse the quality of plants and th e existence of any chemic al residues, pests and 
diseases in order to ensure safety for plant health and consumption.  Lao PDR did not require plant 
inspection for imported plants. However, an importe r was obliged to provide plant health certificate 
issued by relevant competent body of exporting co untry.  In response to a question regarding the 
Regulation "On Pesticide Manageme nt" adopted in 2010, the representative of Lao PDR said that the 
Regulation covered:  (i) registration of pesticide;  (ii) management of production, import, export, 
distribution, transportation, storage and transit of pesticide; (iii) use and disposal of pesticides; 
(iv) packaging, labelling and advertising of p esticides; and (v) management and inspection of 
pesticide.  He added that Lao PDR followed C odex standards in setting and testing the Maximum 
Residue Levels (MRLs).   
138. In response to specific questions, he sai d that Ministerial Decision No. 2860/MAF 
"On Control of Pesticides in Lao PDR" of 11  June 2010 (formerly referred to as Regulation 
No. 0886/MAF "On Pesticide Management") requi red an import permit from the Department of 
Agriculture (or the Agriculture a nd Forestry Office in the provinces and Vientiane Capital) for each 
shipment with a view to monitoring the actual im portation of pesticides.  A prior registration of 
pesticide with the Department or Offices was also required except for botanical pesticides not packed 
for sale; pesticide imported for the purpose of resear ch, trial or exhibition with a condition of getting 
provisional registration from agriculture authorities.  The registration was valid for two years.  WT/ACC/SPEC/LAO/5 
Page 56  
 
  139. 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 Ministry of Science and Technology was finalizing a project, i.e. 
the Trade Development Facility, under a multi-donor tr ust fund.  The key components of the project 
were (i) strengthening the SPS institutional, le gal and regulatory framework; (ii) determining 
risk-based policies and control measures for SPS; and (iii) strengthening the role of the private sector 
in the SPS regime. 
140. Asked how the transparency provisions of th e SPS Agreement would be applied in Lao PDR, 
he said that, pursuant to Decree No. 363/PM "O n Notification and Enquiry of Trade Related 
Information" of 19 August 2010, Lao PDR was estab lishing its SPS Enquiry Point at the Department 
of Planning in the Ministry of Agriculture and Forestry, and its SPS (and TBT) Notification Unit at 
the Foreign Trade Policy Department in the Minist ry of Industry and Commerce.  He noted that 
Ministerial Decision "On the Organization and Oper ation of Sanitary and Phytosanitary Enquiry 
Point" of 23 June 2011 and Decision No. 0471/ MOIC "On SPS and TBT Notification Unit" of 
9 March 2011 had been adopted to further strengt hen the coordination and information exchange 
among SPS and TBT Notification Unit and Enquiry Points.  The regulatory and institutional 
framework was in preparation, and Lao PDR was receiving technical assistance to train staff.  The SPS Enquiry Point and the Notification Centre w ould be operational by th e date of accession to 
the WTO.  The contact details of the TBT Notification Unit and Enquiry Point were: 
SPS and TBT Notification Unit: 
Foreign Trade Policy Department  
Ministry of Industry and Commerce 
PO Box 4107, Vientiane Capital, Lao PDR Tel:   85621-450065 Fax:   85621-450066 Website:  www.laoftpd.com 
SPS Enquiry Point: 
Department of Planning 
Ministry of Agriculture and Forestry  PO Box 811, Vientiane Capital, Lao PDR Tel:   85621-415363 Fax:   85621-412343 
Email:  enquiries@laossps.gov.la  WT/ACC/SPEC/LAO/5 
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  141. Decree No. 363/PM (Article 3.4) also provide d for that before adopting SPS measures, all 
interested parties, both domestic and foreign, wo uld be allowed a period of at least 60 days for 
comments on the draft SPS measures.  The Decree also required that all adopted SPS measures be 
published 180 days before their en forcements, except in urgent circumstances.  In response to a 
specific question, he said that Lao PDR would pub lish all SPS related laws a nd regulations, including 
SPS related import conditions, on the Lao Trade Port al, a website, which was being developed by the 
Ministry of Industry and Commerce with support from the Trade Development Facilities (TDF).  
The website would provide comprehensive information to facilitate international trade.  All relevant 
requirements and procedures for importation wo uld be present for each product (by HS code), 
including SPS/TBT measures.  This website was expected to be launched by June 2012. 
142. [The representative of Lao PDR stated that Lao PDR would progressively implement the 
WTO Agreement on the Application of the Sanitary  and Phytosanitary Measures in accordance with 
the action plan set out in Table 18.  Full implem entation would start from 1 January 2015 without 
recourse to any further transitional period.  The Working Party took note of this commitment.] 
- Trade-related investment measures 
143. Some Members noted that Law No. 10/NA "On the Promotion of Domestic Investment", 
Law No. 11/NA "On the Promotion of Foreign I nvestment" and its implementing regulations 
(Decree Nos. 300/PM and 301/PM) encouraged ex port-oriented production and import substitution 
and would, with these objectives in mind, appear to  include measures falling within the scope of the 
WTO Agreement on Trade-Related Investment Measures (TRIMs Agreement).  In particular, Decree 
Nos. 300/PM and 301/PM include d provisions for import duty and tax concessions and eligibility 
criteria for investment incentives (Annex 2, footnote ) that could be construed as local content or 
export performance requirements.  Lao PDR was re minded that in order to utilize the transitional 
arrangements under the TRIMs Agreement, Lao PD R would be required to identify the precise 
measures for which it would be seeking transitions.  Lao PDR should also indicate how long within 
the allowable period it believed it would be necessary to maintain th e measures, and commit to the 
elimination of all measures incons istent with the TRIMs Agreement within a date certain, e.g. seven 
years from the date of accession to the WTO.  In  case Lao PDR would like to avail itself of the 
transitional period allowed for in the Sixth WTO Ministerial Conference Declaration, Lao PDR was 
requested to confirm that the phase-out period for existing measures would last for seven years from 
the date of accession and have effect for those ex isting measures notified to the Council for Trade in 
Goods.   WT/ACC/SPEC/LAO/5 
Page 58  
 
  144. 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 to 38 and Annex F), he said that Lao PD R 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 Prime Minister's Office to propose alternative measures to promote Lao PDR's industria l policy.  He added that Lao PDR had revamped 
its investment legislation with Law No. 02/NA "On Investment Promotion" of 8 July 2009 replacing 
Law Nos. 10/NA and 11/NA and annulling Decree Nos. 300/PM and 301/PM.  Law No. 02/NA did not include provisions on import duty and tax c oncessions and eligibility criteria for investment 
incentives that could be construed as local c ontent or export performance requirements.   
145. The representative of Lao PDR said that Lao PDR would not maintain any measures 
inconsistent with the TRIMs Ag reement and would apply the TRIMs Agreement from the date of 
accession without recourse to any transitional period.  The Working Party took note of this commitment. 
- State-trading entities 
146. 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).   
147. 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 privile ges used to influence the level of imports.  
These enterprises had been established and operated on the same basis as private enterprises engaged 
in foreign trade, and his Government did not inte rfere in their decision-making.  No enterprise - 
private or State-owned - imported or exported good s on behalf of the Government or engaged in  WT/ACC/SPEC/LAO/5 
 Page 59 
 
 
  stock-building from international trade.  State "contro l" in the context of international trade in goods 
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 
148. The representative of Lao PDR said that La o PDR had established two border trade zones 
(Boten and Dansavanh Village) and one specia l economic zone (Savan-Seno) pursuant to 
Decree No. 25/PM "On Dansavanh Village Border Trade Zone" of 25 March 2002; 
Decree No. 162/PM "On Border Trade Zone at Bo ten, Louangnamtha Provin ce" 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 requi rements for investing in the trade zones 
(Articles 5 to 7 Decree Nos. of 25/PM and 162/PM ) as well as the incentives ac corded to the projects 
(Articles 14 to 24 Decree Nos. of 25/PM and 162/PM ).  Natural or legal persons, regardless of 
nationality, could invest in these zones and engage in manufacturing, services or trading activities. 
Subsequently, Decree No. 443/PM "On Specific and Special Economic Zone" was adopted on 26 October 2010, which provided for the general guidelines for special economic zones and the list of 
incentives available in those zones 
149. 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 subseque ntly 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. 
150. As for the special economic zone, the preferen tial duty and tax treatment was determined in 
Decree No. 177/PM "On Management Regulation a nd Incentive Policies regarding the Savan-Seno 
Economic Zone" of 13 November 2003 (as provided  for in Article 6.4 of Decree No. 148/PM).  
Pursuant to Decree No. 177/PM, investments in the special economic zone were exempt from 
turnover, excise and land tax.  Construction mate rial, machinery, raw materials, semi-finished 
products, vehicles and spare parts used as inputs for production were exempt from customs duty.  In addition, reductions or exemptions from profit ta x were granted for periods  ranging between two to 
10 years as outlined in document WT/ACC/LAO/19 (pages 10 to 12).  WT/ACC/SPEC/LAO/5 
Page 60  
 
  151. In response to specific questions, the represen tative of Lao PDR confirmed that goods 
produced in the border trade zones and in the special  economic zone would be subject to import duty 
when entering the normal customs territory of Lao PDR.   
152. He noted that certain incentives in the special economic zone and the border trade zones had 
been contingent upon export performance and the use of local content.  Profit tax exemptions or 
reductions in the special trade zone were con tingent upon export performance (enterprises exporting 
70 per cent or more of their output could avail of a ten year 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 reduced 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.   
153. 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. 443/PM  "On Specific and Special Economic Zone" was 
adopted in October 2010.  Decree No. 162/PM "O n Border Trade Zone at Boten, Louangnamtha 
Province" was no longer in force.  The provisions on the use of domestic over imported goods in the remaining zones Savan-Seno Special Economic Zo ne (Decree No. 177/PM) and Dansavanh Village 
Border Trade Zone (Decree No. 25/PM) would be eliminated by February 2012.  However, the 
representative of Lao PDR reiterated the flexibilitie s on export performance requirements provided to 
LDCs by the WTO Agreement on Subsidies and Countervailing Measures. 
154. The Representative of Lao PDR said that fr ee zones established under Decree No. 443/PM 
"On Specific and Special Economic Zone in Lao PDR"  and any subsequent legislation would be fully 
subject to the coverage of WTO Agreements and its  commitments in its Protocol of Accession to the 
WTO Agreement and that Lao PDR would ensure enforc ement of its WTO obligations in those zones.  
In addition, the Representative of Lao PDR confir med that from the date of accession goods produced 
in any free trade, special economic  zones or areas under tax and tari ff provisions that exempt imports 
and imported inputs from tariffs and certain taxes would be subject to normal customs formalities  WT/ACC/SPEC/LAO/5 
 Page 61 
 
 
  when entering the rest of Lao PDR, including the ap plication of tariffs and taxes.  The Working Party 
took note of these commitments. 
- Government procurement 
155. 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.  The bi dding documents and proc urement manuals were 
developed and used by government agencies and St ate-owned enterprises at the central and provincial 
levels.  The Procurement Monitoring Office at the Ministry of Finance was responsible for 
administering the procurement of all ministries, governmental agencies, the provinces and Vientiane 
Capital, and State-owned enterprises.   
156. 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 
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.   
157. Asked whether Lao PDR would consider jo ining the WTO 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.   WT/ACC/SPEC/LAO/5 
Page 62  
 
  - Transit 
158. 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 
159. 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 a number of products that affected the livelihood of the 
majority of Lao people.  In the past, imports of  all animal parts and agricultural goods produced 
locally such as chillies, aubergin es, tomatoes, bananas, lemons and other fruit had been banned 
(Notification No. 870/MOC of 19 September 1996).   Presently, Lao PDR did not maintain any 
seasonal restrictions, prohibitions or other controls on the importation of agricultural products other 
than rice (HS 1006) and plant products under HS 0601, which were subject to automatic licensing (Table 11).  He confirmed that the import restric tions previously imposed on rice, i.e. non-automatic 
licensing and indicative annual import plan, had been a bolished.  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  Annex V of document WT/ACC/LAO/5 was no longer 
valid.  The current regime was explained in  the Import Licensing Questionnaire (document 
WT/ACC/LAO/25).  
160. Some Members noted that Lao PDR was seek ing recourse to apply Special Safeguards 
(SSGs) for some products in its most recent market  access offer.  Lao PDR was invited to provide the 
rationale for this request.  In reply, the representa tive of Lao PDR explained that Lao PDR previously 
maintained quantitative restrictions, such as prohib itions or licensing requirements for these products.  
He noted that once Lao PDR liberalized its tr ade regime, Lao PDR intended to maintain the 
possibility to apply SSG measures for some products in order to limit the unforeseen risk and mitigate 
adverse effects on vulnerable poor farmers, who ac counted for more than 30 per cent of Lao PDR's 
population and were living under the poverty line.  WT/ACC/SPEC/LAO/5 
 Page 63 
 
 
  (b) Exports 
161. The representative of Lao PDR said that some ag ricultural products were subject to export 
licensing (Tables 15 and 16).  An export tax of 5 pe r cent was levied on coffee beans and livestock.  
His Government would reserve the right to apply controls on the exportation of rice for food security 
considerations.   
162. 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.   
163. 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 
164. 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.   
165. The representative of Lao PDR provided in formation on domestic  support and export 
subsidies in the agricultural sector fo r the period 2001 to  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 
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.   WT/ACC/SPEC/LAO/5 
Page 64  
 
  166. He noted that his Government had previously  established a State-owned enterprise to 
purchase agricultural products at market prices and r esell the goods in the domestic market at a later 
time to stabilize the market.  The ente rprise had already ceased operations.   
167. [Lao PDR confirmed that, upon accession, it would apply all WTO obligations contained in 
the GATT and in the WTO Agreement on Agricu lture related to domestic support and export 
subsidies.  The Working Party took note of this commitment.] 
- Trade in civil aircraft 
168. 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 
169. 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 
170. The representative of Lao PDR provided a tec hnical note on the implementation of the 
WTO Agreement on Trade-Related Aspects of In tellectual Property Rights (TRIPS) in document 
WT/ACC/LAO/7/Rev.1, and an Action Plan for the implementation of the TRIPS Agreement in 
documents WT/ACC/LAO/15/Rev.5 (Table 19).  With the provision of technical assistance and 
national capacity building, the im plementation of the TRIPS Agreem ent would be achieved, at the 
latest by December 2015, 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).  
171. Industrial property protection was provided thro ugh the Prime Minister's Decree No. 06/PM 
"On Trademarks" of 18 January 1995 and Regulation No. 466/STEA-P MO "On the Registration of 
Trademarks" of 7 March 2002; Decree No. 01/PM "O n the Protection of Patents, Petty Patents 
(Utility Models) and Industrial Designs" of 17 Jan uary 2002, and Regulation No. 322/STEA-PMO 
"On the Implementation of the Patents Decree" of  18 February 2003.  He further noted that  WT/ACC/SPEC/LAO/5 
 Page 65 
 
 
  Intellectual Property Law No. 08/NA of 24 December  2007 - covering copyright and related rights, 
trademarks, trade secrets, geographical indications, industrial designs, patents, petty patents, layout 
designs of integrated circuits, and the protecti on of plant varieties, had entered into force on 
14 April 2008.  Previously, the 2007 Intellectual Property Law superseded provisions of the above-mentioned decrees and regulations to the extent  that those provisions were incompatible with 
the 2007 Intellectual Property Law.  Initially, Lao PDR intended to complement the 2007 Intellectual 
Property Law by an implementing decree and regula tions to meet the requi rements of the WTO.  
The representative of Lao PDR noted, however, that his Government had instead revised the entire 
Law and incorporated all elements, which were initially foreseen for the implementing decrees and 
regulations, into the 2011 Intellectual Property Law,  adopted in December 2011.  He added that a 
copy of the 2011 Law would be submitted to the Working Party, when it was promulgated by the 
President (which was envisaged by April 2012).   
172. A Member noted that Article 2 of the 2007 Intellectual Property Law defined intellectual 
property as a "work of the human mind through inve ntions and creations ha ving economic value and 
benefit in social development".  This Member as ked 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 deni ed protection under the 2007 Intellectual Property Law 
on the grounds that they did not have economic value or contribute to social development.  In reply, 
the representative said that the definition contai ned in the 2007 Intellectual Property Law set out 
Lao PDR's general policy vision to promote socio- economic development - without the intention to 
limit the rights of holders of Intellectual Property Rights.  He said that the specific criteria to qualify for Intellectual Property Rights protection was provided for in Sections III and V of the 
2007 Intellectual Property Law.  The representative of Lao PDR explained, however, that in the 
2011 Intellectual Property Law the terminology "econom ic value and benefit in social development", 
as part of the definition of an intellectual property, was no longer used.   
- Responsible agencies for policy formulation and implementation 
173. The representative of Lao PDR said that the Depa rtment of Intellectual Property (DIP) in the 
Ministry of Science and Technology (MoST) had overall responsibility for the coordination of the 
implementation of policies on intellectual property.  The functions of the Department of Intellectual 
Property included preparation of legislation, th e formulation of strategic development plans on 
intellectual property, the establishment of a re gistration system, international co-operation, 
dissemination of information, and receiving petition s and claims from the public and coordinating 
with other agencies to resolve them.  Copyright and related right were under the Copyright Division WT/ACC/SPEC/LAO/5 
Page 66  
 
  which was, inter alia , responsible for drafting legislation for the management of copyright and related 
rights; notification of information related to copy right and related rights; and the establishment of a 
database.  The IP Dispute Settlement Division 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 Registry under the Trademark Division by December 2012.  The Ministry of Science and Technology would coor dinate with other Ministries and provincial authorities depending 
on the subject matter, e.g. the Ministry of Indust ry and Commerce on trademarks and trade secrets, 
the Ministry of Agriculture and Forestry (plant  varieties), and the Ministry of Information, 
Culture and Tourism (copyright and related rights) and other concerned ministries. 
174. 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 
175. 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 on-going to accede to the Bern e Convention for the Protection of Literary and 
Artistic Works (on 14 March 2012).  Decisions to ac cede to the Rome Convention for the Protection 
of Performers, Producers of Phonograms, and Broa dcasting Organizations and the Washington Treaty 
on Intellectual Property in Respect of Integrated Ci rcuits had been deferred due to technical capacity 
limitations.  Lao PDR had signed a two-year b ilateral agreement with Vietnam on intellectual 
property in 2011 and was in the process of renewing  the bilateral agreement on Intellectual Property 
Cooperation with Thailand.   In 1996, Lao PDR had signed a two-year bilateral Agreement with 
Thailand on trademarks and other areas of intellectua l property rights.  The representative of Lao PDR 
added that his Government was also considering acceding to the Protocol Relating to the Madrid 
Agreement Concerning the Internati onal Registration of Marks.    
176. 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/5 
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  - Application of national and MF N treatment to foreign nationals 
177. The representative of Lao PD R stated that the 2007 Intellectual Property Law included 
provisions on MFN and national treatment (Articles 6 and 7) and ensured confor mity with Article 3 of 
the Berne Convention and Article 9 of the TRIPS Agreement.  He also confirmed that Lao PDR 
applied the principle of national treatment in acco rdance with the Paris Convention for the Protection 
of Industrial Property; and MFN treatment consistent  with other internationa l agreements to which 
Lao PDR was a party.  At present, any person with out lawful representation in Lao PDR was required 
to use an accredited representative in Lao PDR to f ile industrial property applications pursuant to 
Article 27 of the 2007 Intellectual Property Law.  The requirement was aimed at protecting the 
interest of the right holder and at facilitating th e right holder's communication with the competent 
State authorities.  The representative of Lao PDR noted that under the 2011 Intellectual Property Law, 
MFN and national treatment (Article 6) were grante d to all foreign nationals in accordance with the 
provisions of Articles 3 and 4 of the TRIPS Agreement.  
- Fees and taxes 
178. The representative of Lao PDR said that as Lao PDR was in the process of revising its 
existing intellectual property legislation to bring it in to conformity with the requirements set out in the 
TRIPS Agreement. The current fees and charges rela ted to trademarks, patents, petty patents and 
industrial designs are enumerated in Table 20.   
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights 
179. The 2007 Intellectual Property Law entered into force in April 2008.  The representative of 
Lao PDR said that this Law was based on the WIPO model law and the requirements of the 
TRIPS Agreement.  The Law included provisions on copyright and related rights, thereby protecting 
this subject matter for the first time in Lao PDR.  Initially, Lao PDR intended to adopt a decree to 
implement the 2007 Intellectual Property Law by th e end of 2011 and a Regulation on Copyright and 
Related Rights was expected by 2012.  Howeve r, the representative of Lao PDR said that the 
Government of Lao PDR had instead revised th e entire 2007 Law and adopted a new Intellectual 
Property Law in December 2011.  In his view, th e 2011 Intellectual Property Law took full account of 
the WTO TRIPS Agreement, the Berne Conventi on and Members' comments.  A copy of the WT/ACC/SPEC/LAO/5 
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  2011 Intellectual Property Law woul d be submitted to the Working Pa rty when promulgated by the 
President (envisaged by April 2012).  He added that his Government was also preparing to accede to 
the Berne Convention on 14 March 2012.  A copyri ght and related rights information section was 
established in 2009.  
180. Previously, a Member had noted that the draft of the 2007 Intellectual Property Law appeared 
to fall short of full compliance with the re quirements 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 audio-visual works and sound recordin gs.  In reply, the representative of Lao PDR said 
that many of the points raised had been addressed in the promulgated 2007 Intellectual Property 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 for audio-visual 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 TR IPS Agreement.  He added that the 2007 Law did 
not require the registration of a copyright for prot ection, as works were protected automatically upon 
creation (Article 79).  However, the voluntary notifi cation of works was available in accordance with 
Decision No. 1028/PMO-NAST "On Notifying Informa tion on Copyright and Related Rights" of 
17 June 2009, by which owners of copyright and related rights could voluntarily notify their works 
with the MoST.  This could be useful as evidence in case of violations or disputes. 
181. 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 2007 Law (Articles 3.25 and 79) to ensure 
conformity with Article 9.2 of the TRIPS Agre ement.  Lao PDR was also requested to amend 
Articles 3.26, 78(3) and 78(4) of the 2007 Law to in clude unencrypted broadcast s in the definition of 
related rights.  Noting that Article 78 of the 2007 La w appeared to provide protection for the related 
rights of Lao nationals, this Member asked Lao PD R to explain how protecti on would be extended to 
the rights of foreign performers, producers of phonograms and broadcasting organizations 
(Articles 78, 1.2, 1.3, 2.2. and 3.2).  Lao PDR was also 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 interna tional convention or agreement.  
Lao PDR was further requested to include a more  specific definition of the act of reproduction 
(Article 3.30).  A Member requested Lao PDR to further clarify the provision contained in paragraph 1 of Article 76.  WT/ACC/SPEC/LAO/5 
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  182. 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 re presentative of Lao PDR noted that under the 2011 
Intellectual Property Law, it was clearly defined th at copyright protection did not extend to ideas.  
In the 2007 Intellectual Property Law, unencrypted  broadcasts were, in his view, covered under the 
definition of broadcasting, and the rights of fo reign performers and pro ducers of phonograms and 
broadcasting organizations would be protected by Lao PDR's participation as a contracting party to 
international conventions.  He said that in case the te rm of protection in the 2007 Intellectual Property 
Law was inconsistent with the term  accorded in an international convention or agreement to which 
Lao PDR was a contracting party, then the term of  protection of that international convention or 
agreement would prevail.  In response to certain specific questions, he said that the 2007 Intellectual 
Property Law included provisions stipulating that u se of protected intellectual property by a third 
party, whether for commercial or non-commercial pur poses, must be with the authorization of the 
right holder.  In the event of a conflict of inter est, the parties could avail of the dispute resolution 
provisions of the 2007 Law (Section VIII) or seek remedy in the courts.    
183. 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 2007 Intellectual Property La w).  The collective ownership of copyright for 
traditional cultural expressions aimed at the preser vation of traditional values and moral rights.  
The local community would be considered the "author " of such works.  Traditional art and literature 
were (local or group) traditional compilations of cr eations revealing the way of life of the community, 
the performance was culturally and socially consis tent and transmitted ora lly through generations, 
copied or made similar such as local stories, poe ms, maxims, or proverbs; local songs, dances, or 
music; traditional dance, games, rites and competiti ons; or musical instruments, paintings, drawings, 
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 source of the 
traditional performance and preserve its original valu es.  The protection involved moral rights and not 
commercial rights.  Their term of protection had not been determined .  Previously, he informed the 
Working Party that a Decree Implementing the Intellectual Property Law and other relevant 
regulations on Intellectual Property would be adopted  to further elaborate the collective ownership of 
such works.  He noted, however, that his Gove rnment had instead adopted the 2011 Intellectual 
Property Law, superseding the 2007 Intellectual Proper ty Law (see the revised TRIPS Action Plan in 
document WT/ACC/LAO/15/Rev.5).  According to  the 2007 Intellectual Property Law, as for 
limitations on copyright subject to compensation (Articles 95 and 97), individuals or entities WT/ACC/SPEC/LAO/5 
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  "broadcasting programs with sponsorship" would no t 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, performer s, or broadcasting organi zations for sound/video 
recordings.  In reply to a Member's concern w ith regard to Articles 95 and 97 of the 2007 Law, 
the representative of Lao PDR noted that the 2011 Intellectual Property Law no longer contained such provisions.    
184. Lao PDR was also requested to further refine th e definition of "data compilation" (Article 86).  
A Member noted that the 2007 Intellectual Property Law granted performers the right to record and reproduce live performances of the performer onto audi o-visual discs (Articles 89(3) and 89(4)), this 
provision appeared to be more limited than the corresponding provision provided for in the 
TRIPS Agreement, Lao PDR was therefore requested  to amend its 2007 Intellectual Property Law to 
ensure full compliance with Article 14(1) of the TRIPS Agreement.  A Member requested further 
clarification as to who would be considered an i nvestor under the 2007 Intellectual Property Law, the 
representative of Lao PDR replied that under Article 92 of the Law, an individual or entity providing 
the funds for the performance was c onsidered as an "investor".  The representative of Lao PDR noted 
that under the 2011 Intellectual Property Law, the provision contained in Article 92 of the 2007 Law 
was no longer contained.  Regarding the term of pr otection of a work (Article 93(2)), Lao PDR was 
requested to bring the 2007 Law into compliance with  Article 12 of the TRIPS Agreement.  Article 12 
of the TRIPS Agreement provided for a term of prot ection of the copyright, namely 50 years from the 
end of the calendar year of authorized publication,  or, failing such authorized publication, 50 years 
from the end of the calendar year of the making.  Lao PDR was further requested to bring its Articles 94(1) and 94(2) of the 2007 Law into complia nce with the term of protection available to 
performers and producers of phonograms according to  Article 14(5) of the TRIPS Agreement.  
A Member sought further clarification as to how th e limitations provided for in Articles 96, 97 and 98 
of the 2007 Law were consistent with Article 13 of the TRIPS Agreement and requested Lao PDR to 
bring these provisions into compliance with the TRIPS Agreement.  In response, the representative of 
Lao PDR said that, in his view, the 2011 Intellect ual Property Law had brought these provisions into 
compliance with the TRIPS Agreement.  The 2 011 Law was expected to be promulgated by 
April 2012.  A copy of the 2011 Law would be submitted to the Working Party.   
- Trademarks, including service marks 
185. 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.   WT/ACC/SPEC/LAO/5 
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  The 2007 Intellectual Property Law superseded pr ovisions contained in Prime Minister's Decree 
No. 06/PM and Regulation No. 466/STEA-PMO wher e provisions were incompatible with the 
2007 Intellectual Property Law.  Pursuant to th e 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.  Applications for regist ration of a trademark were to be filed with the 
Department of Intellectual Property in the MoST.  The Department processed the application, entered 
the approved trademark in a national register, and issued a trademark registration certificate.  The registered mark was published in the Offici al Gazette of the MoST.  The normal timeframe 
between application 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 fi ve years, unless it could be demonstrated that 
special circumstances had prevented the use of the trademark.   
186. Under the 2007 Intellectual Property Law, trad emarks were excluded from registration that 
were (i) not clear and did not identify any product or service; (ii) contrary to national culture, morals 
or public order; (iii) misleading or likely to mislead,  in particular with respect to geographical origin, 
nature or characteristics; (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 ma rk was identical with - or confusingly similar to 
- trademarks or trade names of goods or services which were widely "well-known".   
187. Pursuant to the 2007 Intellectual Property Law, the owner of a trademark already registered 
abroad had the right to claim priority when filin g for registration in Lao PDR.  Registration for 
protection of a trademark was not compulsory in Lao PDR, but the rights of the owner or his/her 
consent could only be recognized if a trademark had been registered.  Owners of registered 
trademarks had the exclusive right to use the trademar ks, or to authorize others to use them.  He noted 
that the 2007 Intellectual Property Law (Articles 112 to 118) provided for general administrative and 
judicial remedies to owners of registered trademarks  against any infringement of such trademarks.    
188. Responding to specific questions and comments,  he acknowledged that Article 12 of the 
1995 Decree made no reference to marks identical or  confusingly similar to marks that were the 
subject of registration or pending applications ( but not well-known).  Decree No. 06/PM would also 
need to be amended to ensure full compliance wi th Article 15.5 of the TRIPS Agreement regarding WT/ACC/SPEC/LAO/5 
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  the provision of reasonable opportunity for petitions  to cancel a registrati on.  He added that 
Articles 16, 23 and 45 of the 2007 Intellectual Propert y 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 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 registered mark.  
The representative of Lao PDR noted that the 2011 Intellectual Property Law maintained the above 
provisions of the 2007 Intellectual Property Law.  He added that, in his view, the 2011 Law also 
preserved the exclusive and prior rights of an owne r and covered examination of applications for a 
trademark and cancellation of a registered mark.  
- Geographical indications, including appellations of origin 
189. Having reviewed a draft of the 2007 Intellectual Property Law, a Member noted that the 
provisions relating to geographical indications (G Is) were limited to de finition and duration.  
A Member further requested additional informati on 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 pr otected trademark would be able to prevent the 
protection or registration of a confusingly sim ilar and later-in-time geographical indication in 
accordance with Articles 16.1 and 24.5 of the TRIPS Agreement. 
190. 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 2007 Intellectual Property Law est ablished the requirements for the protection of a 
geographical indication.  The term of protectio n of a registered geographical indication was 
permanent, but third parties had the right to seek ca ncellation of a GI registration, if the registration 
had been made in bad faith as per Articles 57, 115, 116 and 117 of the 2007 Intellectual Property 
Law.  The representative of Lao PDR noted that the 2011 Intellectual Property Law maintained the 
above provisions of the 2007 Intellectual Property La w.  He added that, in his view, the 2011 Law 
also included further provisions to ensure compliance with Articles 16.1 and 24.5 of the 
TRIPS Agreement.  Lao PDR had set up a committee to supervise a project on the establishment of 
potential geographical indications under the Ministry of  Agriculture and Forestry in 2007.  He added 
that, in 2009, Lao PDR established a geographical indications registration unit under the Department 
of Intellectual Property.  WT/ACC/SPEC/LAO/5 
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  191. A Member noted that, for the definition of GIs, Article 3.17 and the last paragraph of 
Article 19 of the 2007 Intellectual Property Law need ed to be read in conjunction.  The Member 
therefore suggested Lao PDR to provide the complete  definition in Article 3.17 in order to avoid any 
confusion.  The representative of Lao PDR replie d that, in his view, the 2011 Intellectual Property 
Law provided a complete definition of GIs.    
192. In response to specific questions on the 2007 Law regarding the possible co-existence of 
protected geographical indications and trademar ks and on the safeguards in place to ensure 
compliance with Article 16 of the TRIPS Agreem ent, the representative of Lao PDR said that a 
geographical indication could not be registered if th e indication was "identical or similar to protected 
trademarks that lead to misunderstanding as to th e origin of the said goods" (Article 25.3 of the 
2007 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) of the 2007 Law barred the owner of a 
geographical indication from preventing the use of th e same or similar trademark where the trademark 
acquired protection before the date of filing of  a registration application for the geographical 
indication.  He added that Lao PDR would not pr ejudice the eligibility for or the validity of the 
registration of a trademark, or the right to use a trademark, on the basis of such trademark was 
identical with or similar to a geographical indica tion, in cases when the trademark was registered in 
good faith (i) before the date of entry into for ce of the Law on Intellectual Property Rights; or 
(ii) before the geographical indication was protected  in its country of origin.  Foreign geographical 
indications that were not protected in the foreign jurisdiction could not be registered in Lao PDR.  
He added that comments with regard to WTO ju risprudence (WT/DS/174/R) and the safeguards for 
compliance with Articles 16 and 17 of the TRI PS Agreement were taken into account in the 
2011 Intellectual Property Law.  He further noted that, in his view, the 2011 Intellectual Property Law 
had incorporated a provision to allow owners of a re gistered trademark or third parties to object the 
registration of a geographical indication.   In response to a specific question on the registration of 
later-in-time geographical indications, the repr esentative of Lao PDR noted that pursuant to 
Article 25.5 of the 2011 Intellectual Property Law, a geographical indication coul d not be registered if 
the indication would lead to misunderstanding or c onfusion as to the origin of the good with an 
already registered geographical indication. 
- Industrial designs 
193. 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 WT/ACC/SPEC/LAO/5 
Page 74  
 
  (Article 32), but did not distinguish new from origin al designs.  Provisions on industrial designs had 
also been included in the 2007 Intellectual Pr operty Law.  The 2007 Intellectual Property Law 
superseded provisions of the Decree where they were  incompatible with the 2007 Intellectual Property 
Law.  The representative of Lao PDR noted, howe ver, that the 2011 Intellectual Property Law, 
adopted in December 2011, superseded the 2007 Intellectual Property Law.    
194. Having reviewed a draft of the 2007 Law, whic h appeared to be restating provisions in 
Decree No. 01/PM, a Member noted that Lao PDR woul d seem to be protecting industrial designs for 
five years, less than the ten-year term of pr otection provided for under the TRIPS Agreement.  
In reply, the representative of Lao PDR said that in accordance with Article 48 of the 2007 
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 2007 Intellectual Property Law.   
- Patents 
195. 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 2003,  the 2007 Intellectual Property Law, and the 
2011 Intellectual Property Law.  He noted that th e 2007 Intellectual Property Law superseded the 
provisions of Decree No. 01/PM and Regulation No . 322/STEA-PMO, which were incompatible with 
the 2007 Intellectual Property Law.  In accordance with Article 21 of the 2007 Intellectual Property 
Law, discoveries; scientific theories and mathemat ical 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.  He noted that this provision was in line with Article 27.2 of 
the TRIPS Agreement.  In response to a specific  question, he confirmed that non-biological or 
microbiological processes were eligible for patent  protection.  Pursuant to the 2007 Intellectual 
Property Law, the term of protection for a patent was 20 years without renewal (ten years for a petty 
patent with a possible extension of two year s).  The requirements of Article 29 of the 
TRIPS Agreement - conditions on patent appli cants - were covered by Article 30 of the 
2007 Intellectual Property Law.  The representativ e of Lao PDR noted that the 2011 Intellectual 
Property Law, adopted in December 2011, superseded  the 2007 Intellectual Property Law.  He stated 
that the 2011 Intellectual Property Law also contained the provisions of the 2007 Intellectual  WT/ACC/SPEC/LAO/5 
 Page 75 
 
 
  Property, as described above.  He also noted that further details and provisi ons on patent protection 
had been included in the new Law.   
196. 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 
attempting to provide for a compulsory licence wh ere the provisions of Article 5(A)(4) of the 
Paris Convention applied, although this was not clea r from the text, he said that Article 54 of the 
2007 Law related to non-use or insufficient exploita tion of a patented invention for three years after 
the patent had been granted.   
197. The representative of Lao PDR said that Artic le 53 of the 2007 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.   
198. The representative of Lao PDR added that some aspects of the TRIPS Agreement relating to 
patents had been addressed further in the Civil Procedure Law (Articles 3 and 20), in particular, 
regarding the opportunity for judicial review of d ecisions to revoke or forfeit a patent (Article 32 of 
the TRIPS Agreement), the conditions for provi ding limited exceptions to the rights conferred 
(Article 30 of the TRIPS Agreement), and to allow re versal of the burden of proof in process patent 
infringement actions in the instances foreseen in Article 34 of the TRIPS Agreement.   
- Plant variety protection 
199. 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.  The representative of 
Lao PDR added that under the 2011 Intellectual Pr operty Law, adopted in December 2011, domestic 
and foreign natural and legal persons were entitled to apply for plant variety rights.   WT/ACC/SPEC/LAO/5 
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  200. Asked whether Lao PDR would consider becoming a UPOV member, the representative of 
Lao PDR said that Lao PDR would focus its limited capacities on implementing TRIPS requirements, 
as it understood that the TRIPS Agreement did not require membership of the UPOV Convention.  
He added that, in his view, the 2011 Intellectual Property Law was substantially in compliance with 
the UPOV Convention.   
- Layout designs of integrated circuits 
201. 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.  Under the 2007 Intellectual Property Law,  the term of protection of layout designs 
(topographies) of integrated circuits was 12 years.   A decision to accede to the Washington Treaty on 
Intellectual Property in Respect of Integrated Circ uits had been deferred due to technical capacity 
limitations.  The representative of Lao PDR noted th at the 2011 Intellectual Property Law, adopted in 
December 2011, maintained these provisions and provided further provisions on the protection of 
layout designs of integrated circuits.   
- Requirements on undisclosed information,  including trade secrets and test data 
202. The representative of Lao PDR said that Article  104 of the 2005 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.   
203. Provisions providing protection for undisclosed in formation or trade secrets were contained in 
Articles 20, 100(2), 101, 107 and 111.5 of the 2007 Intellectual Property Law.  The representative of 
Lao PDR noted that the 2011 Intellectual Property La w, adopted in December 2011, maintained these 
provisions and provided further provisions on the prot ection of undisclosed information in line with 
Article 39.2 and 39.3 of the TRIPS Agreement. 
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS 
204. The representative of Lao PDR said that measures to control abuse of intellectual property 
rights had been included in Decree No. 01/PM "O n the Protection of Patents, Petty Patents 
(Utility Models) and Industrial Designs" (Articles 20 and 21), Decree No. 06/PM "On Trademarks", 
and Decree No. 15/PM "On Trade Competition".  He  noted that the 2007 Intellectual Property Law 
superseded the provisions contained in Decree s No. 01/PM, No. 06/PM and No. 15/PM in cases  WT/ACC/SPEC/LAO/5 
 Page 77 
 
 
  where they were incompatible with the 2007 Inte llectual Property Law.  Provisions to control 
anti-competitive practices had also been included in Articles 54 to 57 and 111 of the 2007 Intellectual 
Property Law.  The representative of Lao PDR noted that, in his view, the 2011 IP Law, adopted in 
December 2011, was fully in line with the require ments in the TRIPS Agreement on the control of 
anti-competitive practices in contractual licenses. 
- ENFORCEMENT 
205. 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 strengthe ned through the 2007 Intellectual Property Law.  
He further noted that the 2011 Intellectual Property Law contained provisions relevant to enforcement 
procedures and remedies, including civil and criminal  procedures.  He further added that Ministerial 
Instruction No. 1970/MOF on Customs Protection of Intellectual Property was issued in September 2011 to provide for border measures that  were in compliance with Section 4 of the 
TRIPS Agreement.  
- Civil judicial procedures and remedies 
206. The representative of Lao PDR said that right hol ders could evoke civil judicial procedures 
pursuant to the 2007 Intellectual Property Law (Article 117) and the Civil Procedure Law 
(Articles 78, 83, 92 and 93).  In response to a sp ecific question, the representative of Lao PDR said 
that pursuant to Article 83 of the Civil Procedure Law and Article 78 of the Criminal Procedure Law, 
any party had equal opportunities to be heard in a court h earing on evidence presented either by the 
judge or by any of the parties.  A judge could orde r the production of evidence to substantiate a party's 
claims according to Article 20 of the Civil Pro cedure Law, and Article 76 of the Law provided for 
additional remedies including the seizure and destruction of infringing goods, materials and 
implements.  In response to Members' concerns , the representative of Lao PDR said that the 
2011 Intellectual Property Law specifically included the destruction of infringing goods, as an additional remedy.  In his view, the 2011 Law was therefore fully compliant with Articles 46 and 59 WT/ACC/SPEC/LAO/5 
Page 78  
 
  of the TRIPS Agreement.  In addition, he noted that the 2011 Law included provisions on civil 
judicial procedures and remedies in line with the TRIPS Agreement.  
207. A Member previously noted that certain re quirements of the TRIPS Agreement were not 
clearly reflected in the existing legislation.  In reply, the representative of Lao PDR, however, stated 
that certain requirements had been reflected, name ly:  the ability of a judge to issue orders or 
injunctions enjoining a party from infringing intellect ual property rights (Article 71 of Civil Procedure 
Law No. 02/NA, dated 17 May 2004); order the paym ent of adequate damages (Articles 83, 91 
and 101 of Law No. 01/NA "On Contract and Tort",  dated 8 December 2008); allow the right holder 
to recover enforcement costs, lost profits and/or  statutory damages (Articles 26 and 33 of Court Fee 
Law No. 07/NA, dated 27 December 2006 and Article  35 of Judgment Enforcement Law No. 04/NA, 
dated 25 July 2008); indemnification of the defenda nt, including attorney's fees, in the event of 
litigation abuse by plaintiffs; and ensuring that administrative remedies would conform to these 
principles.  He further noted that provisions exemp ting public authorities and officials from liability in 
connection with the administration of IP laws where actions were taken or in tended in good faith and 
within the scope of their authority were containe d in Article 83 of Law No. 1/NA "On Contract and 
Tort", dated 8 December 2008.   
- Provisional measures 
208. The representative of Lao PDR stated that judges could grant temporary restraining orders 
and provisional relief to preven t infringement and to preserve evidence according to Articles 76 
and 119 of the Civil Procedure Law (for civil cases) and Articles 59 to 68 of the Criminal Procedure 
Law (for criminal cases).  The customs authority had the right to inspect and seize infringing goods 
(Article 76.10 of the Customs Law and Article 124 of  the 2007 Intellectual Property Law).  He further 
noted that Article 76.10 of the Customs Law a nd Article 124 of the 2007 Intellectual Property Law 
had been revised by Ministerial Instruction No . 1970/MOF on Customs Protection of Intellectual 
Property (which was issued in September 2011), to ensure compliance with Section 4 of the 
TRIPS Agreement.  Asked about indemnificati on of the defending party in case of unjustified 
provisional relief, he said that Articles 83, 91 and 101 of the Law No. 01/NA "On Contract and Tort", 
dated 8 December 2008, allowed defendants to pr otect their rights and legitimate interests.  
- Administrative procedures and remedies 
209. 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 Industrial Designs ", the 2007 Intellectual Property Law, the  WT/ACC/SPEC/LAO/5 
 Page 79 
 
 
  2011 Intellectual Property Law and the Petition Ha ndling Law No. 07/NA, dated 9 November 2005.  
The representative of Lao PDR said that the 2011 Inte llectual Property Law provided the possibility to 
request administrative action with the Ministry of Science and Technology (MoST) or Customs 
Department (for border measures).  He further not ed that the administrative actions with border 
measures would be handled under Ministerial Inst ruction No. 1970/MOF "On Customs Protection of 
Intellectual Property" and the actions with MoST re lied on the general provisions of the 2005 Petition 
Handling Law. 
210. 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.  
For example regarding trademarks, the Department  of Intellectual Property (DIP) could issue a 
warning by administrative procedure to individuals  and legal entities using trademarks without the 
consent of the owner or otherwise pursuing the u se of trademarks illegitimately.  The DIP would 
invite the parties concerned to discuss the allege d violation and find a mutually agreeable solution 
(acceptable also to DIP).  If no Agreement was r eached, the matter could be referred to the Economic 
Arbitration Office under the Ministry of Justice or to the courts.   
211. 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 DIP, and one case by the Economi c Dispute Resolution Office.  Although the 
settlements needed to be "certified" by a court to be legally 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 
212. The representative of Lao PDR said that th e 2005 Customs Law and its implementing 
Decree No. 362/PM included provisions for intell ectual property rights protection at the border.  
Right holders would request the Department of Inte llectual Property in the MoST to take action, and 
the Department coordinated with the Customs Depart ment in the application of border measures.  
Pursuant to Article 76.10 of the Customs Law, the customs authorities could inspect and seize infringing goods.   
213. 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 WT/ACC/SPEC/LAO/5 
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  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.  The representa tive of Lao PDR noted that Ministerial Instruction 
No. 1970/MOF on Customs Protection of Intellectua l Property (issued in September 2011) covered 
Articles 51 through 60 of the TRIPS Agreement.  He  further said that the 2011 Intellectual Property 
Law included provisions in line with Section 4 of th e TRIPS Agreement.  He also added that a new 
Customs Law had been adopted in December 2011 but ha d not yet entered into force.  A copy of the 
2011 Customs Law would be submitted to the Wo rking Party, when it was promulgated.  
- Criminal procedures 
214. The representative of Lao PDR said that the 2007 Intellectual Property Law and the 
2007 Criminal Law allowed recourse to criminal pr oceedings in case of infringement of intellectual 
property rights in accordance with Criminal Proce dure Law.  Penalties were stipulated in the 
2007 Intellectual Property Law and in the 2007 Crimin al Law.  The representative of Lao PDR noted 
that the 2011 Intellectual Property Law also allo wed recourse to criminal proceedings in case of 
infringement of intellectual property rights - in  the form of imprisonment and fines.   
215. 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) included sanctions against 
infringement of all intellectual property rights.  Pe nalties were in the form of imprisonment ranging 
from three months to two years, and fines between  KN 0.5 million and KN 5 million.  He added that 
under the 2011 Intellectual Property Law, adopted in December 2011, fines ranged between KN 0.5 
million and KN 10 million.   
VI. POLICIES AFFECTING TRADE IN SERVICES 
216. The representative of Lao PDR said that servi ces accounted for a quarter of all trade and 
around 26 per cent of Lao PDR's GDP in 2009.  The public sector had traditionally been the principal 
services supplier.  The main services sectors we re wholesale and retail trade, followed by 
transportation, storage, communication and financia l services.  Tourism was an important source of 
export revenue. But with market-oriented reforms and privatization the private sector was gaining 
prominence in services sectors, such as: computer, courier, telecoms, construction, distribution, 
education, environment, insurance,  banking and tourism.  He added that services exports had grown at 
about 6.6 per cent annually since 1990 while the grow th in services exports was largely triggered due 
to a significant expansion in the tourism industry.  He noted that there was currently no data available  WT/ACC/SPEC/LAO/5 
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  to assess the growth of the specific services sectors.  Public suppliers continued to dominate the 
following services sectors:  hospitals, water supplies,  electricity distribution, and postal services.  
217. Legislative developments had been made in va rious sectors, including:  the adoption of the 
Law "On Postal" (2004); the Law "On Tourism" (2005); the Law "On Civil Aviation" (2005); the Law "On Health Care" (2005); the Law "On A ccounting" (2007 Amendment); the Law "On 
Education" (2007 Amendment); the Law "On Media"  (2008); the Law "On Water Supply" (2009); the 
Law "On Construction" (2008); the revised Law "On Telecommunications" (2011); the revised 
Insurance Law (2011); the Law "On Bar Association"  (2011); and, the Law "On Electricity" (2011).  
The legal framework and the regulatory capacity for several service sections, such as banking was still 
being developed.  Ministries and agencies responsible  for services included the Ministries of Planning 
and Investment; Public Works and Transport; Jus tice; Finance; Health; Education and Sports; 
Information, Culture and Tourism; Agriculture and Forestry; Industry and Commerce; Energy and 
Mines; and Labour and Social Welfare; Science and Technology; Natural Resources and Environment; Post, Telecommunication and Communica tion and the Bank of Lao PDR.  The Ministry 
of Planning and Investment coordinated ser vices negotiations under the ASEAN Framework 
Agreement on Services, whereas the Ministry of  Industry and Commerce had overall responsibility 
for trade in services issues  as they arose in the WTO.  Followi ng the adoption of Decree No. 363/PM 
on the Notification and Enquiry of Trade Related Information, dated 19 August 2010, and Decision 
No. 0349/MOIC.FTPD on the GATS Enquiry Point,  dated 22 February 2011, his Authorities 
established the GATS Enquiry Point in the Foreign Trade Policy Department of the Ministry of 
Industry and Commerce.  Lao PDR submitted a copy of the legislation to the Working Party.  
The GATS Enquiry Point could be contacted at: 
Foreign Trade Policy Department 
Ministry of Industry and Commerce PO Box 4107, Vientiane Capital, Lao PDR Tel:   +85621-450065 
Fax:   +85621-450066 
Website: www.laoftpd.com Email: gats.enquiry@laoftpd.com 
218. He noted that investment in service sectors were  governed by the new investment legislation, 
i.e. Law No. 02/NA "On Investment Promotion" and its Implementing Decree.  The Business Law No. 03/94/NA of 18 July 1994, which had reser ved certain activities for Lao nationals, 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 replac ed by the Enterprise Law No. 11/NA of 
9 November 2005, which aimed at providing foreign and domestic investors an opportunity to WT/ACC/SPEC/LAO/5 
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  conduct businesses on an equal footing and retained only certain restrictions related to cultural 
sensitivity, for example, tourist guides. Howeve r, the Land Law No. 04/NA of 21 October 2003 
stipulated that foreign nationals or juridical persons were not entitled to  own land but could own 
premises or lease land.  Pursuant to the Labour La w No. 06/NA, foreign investors were encouraged to 
give 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 th e skilled employees, and enterprises were urged to 
upgrade the skills of local employees.  
219. 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.   
220. In legal services, foreign nationa ls could provide advisory services as legal consultants, but 
could not represent clients directly in the court.  According to the Law on Bar Association adopted in 
December 2011, foreign lawyers were allowed to pr actice law in Lao PDR once registered with the 
Ministry of Justice. 
221. 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. 
222. The banking system was under the supervision of BOL and regulated by Law No. 03/NA 
"On Commercial Banks" and the Implementing Decr ee No. 275/PM.  The Lao Securities Exchange 
(LSX) was established on 10 October 2010 and ha d become operational since January 2011.  
Law No. 11/90/NA "On Insurance" and its impl ementing decree governed the insurance sector.  
The Insurance Law had been amended and adopt ed in December 2011.  The insurance market 
remained narrow whereby most insurance coverage  applied to non-life insurance products and only a 
small proportion of the Lao population had insura nce coverage.  A monopoly on insurance services 
granted to Allianz General Laos, a joint venture with 51 per cent foreign ownership, had expired 
in 2002.  WT/ACC/SPEC/LAO/5 
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  223. Although some natural monopolies existed, particularly in the supply of public services, a 
number of sectors had been opened to competition, including telecommunication, banking, insurance, 
air and road transport, water supply, and hospital services 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.   
224. The Telecommunications Act No. 02/NA of 10 April 2001 provided the legal framework for 
telecommunication services.  The Ministry of Post, Telecommunication and Communication provided 
regulatory oversight for this sector.  Domestic and international fixed line te lephone services were no 
longer a monopoly for the Lao Telecommunications Company, a joint venture with 49 per cent foreign ownership.  Five companies provided mob ile telephony services, and there were no specific 
limitations on operators of e nhanced and value-added services, including internet services.  
The representative of Lao PDR added that the 2001 Telecommunication Act had been revised and the 
new Law was adopted in December 2011.  A copy of the revised Law would be submitted to the 
Working Party, following its promulgation.   
[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 225. The representative of Lao PDR said that Decr ee No. 363 "On the Notification and Enquiry of 
Trade-Related Information" of 19 August 2010 in cluded provisions for prior comment and public 
review of proposed SPS and TBT regulations and legisl ation.  He also noted that public consultations 
with stakeholders were required fo r adopting laws - particularly tho se relating to many parties and the 
vital interests of the Lao people - pursuant to Artic le 37 of the Presidential Ordinance No. 02/OPR of 
20 October 2003 "On Legal Act Making".  The Ordina nce 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 enacting a broade r regulatory review process, to foster greater 
overall transparency.   
226. [The representative of Lao PDR confirmed that, upon accession, Lao PDR would fully and 
promptly implement Article X of the GATT 1994, Article III of the GATS, Article 63 of the TRIPS Agreement, and other transparency provisio ns in the WTO Agreements requiring notification WT/ACC/SPEC/LAO/5 
Page 84  
 
  and or publication.  He further confirmed that no law, regulation, judicial decision, administrative 
rulings, or other measures of general application,  at any level of government, pertaining to or 
affecting trade in goods, services and TRIPS would b ecome effective prior to its publication in the 
Official Gazette.  The publication of such laws, regulations and other measures would include the 
effective date of these measures and list the products  and/or services affected by the particular 
measure.  The Working Party took note of these commitments.] 
[The representative of Lao PDR confirmed that, upon accession, Lao PDR would promptly implement 
Article X of the GATT 1994, Article III of the GATS,  Article 63 of the TRIPS Agreement, and other 
transparency provisions in the WTO Agreements requiring notification and or publication of laws, 
regulations, judicial decisions, administrative rulings and other measures of general application, at any 
level of government, pertaining to  or affecting trade in goods, services and TRIPS.  The Working 
Party took note of these commitments.] 
- Notifications 
227. The representative of Lao PDR confirmed that, at th e latest within six months of the entry into 
force of the Protocol of Accession, Lao PDR woul d submit all initial notifications required by the 
WTO Agreement.  Any laws, regulations, or other measures subsequently enacted by Lao PDR, and 
which were required to be notified pursuant to the WTO Agreement, would also be notified in a time 
and manner consistent with WTO requirements.  Th e Working Party took note of these commitments. 
VIII. TRADE AGREEMENTS 
228. 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, later renamed ASEAN Trad e in Goods Agreement (ATIGA), du ties on imports into Lao PDR 
from other ASEAN members would set to fall to zero, or maximum 5 pe r cent, on nearly 99 per cent 
on HS 2007.  For goods on the "Sensitive List" (203 tariff lines), Lao PDR would eliminate 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 co mmitment.  He estimated that about 60 per cent 
of Lao PDR's imports would be c overed when AFTA had been fully implemented.  Lao PDR was also 
a member of the ASEAN Framework Agreement on Services (AFAS) and the ASEAN Investment 
Area Agreement, later renamed ASEAN Comprehensive Investment Agreement (ACIA).  Free Trade 
Agreements with ASEAN dialogue partners (Chi na, India, Japan, Korea, as well as the Closer 
Economic Relations (CER) Agreement w ith Australia and New Zealand) were in force.  He noted that  WT/ACC/SPEC/LAO/5 
 Page 85 
 
 
  the ASEAN-Japan and ASEAN-India negotiations in services were expected to be concluded by the 
end of 2012.  
229. 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.  
230. [The representative of Lao PDR confirmed that  his Government would observe the relevant 
provisions of the WTO Agreement, including Article XXIV of the GATT 1994, the 1979 GATT 
Decision on Differential and More Favourable Treat ment, Reciprocity and Fuller Participation of 
Developing Countries (Enabling Clause) and Article  V of the GATS in its trade agreements and 
would ensure that the applicable provisions of th e WTO Agreements for notification, consultation, 
and other requirements concerning free trade areas,  customs unions and other preferential trade 
arrangements, of which Lao PDR was, or may become, a Member, were met from the date of 
accession.  The Working Party took note of these commitments.] 
CONCLUSIONS 
231. The Working Party took note of the explanati ons and statements of Lao PDR concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the commitments 
given by Lao PDR in relation to certain specific ma tters which are reproduced in paragraphs […].  
The Working Party took note that these commitments  had been incorporated in paragraph 2 of the 
Protocol of Accession of Lao PDR to the WTO. 
232. Having carried out the examination of the foreign trade regime of Lao PDR and in the light of 
the explanations, commitments and concessions made  by the representative of Lao PDR, the Working 
Party reached the conclusion that Lao PDR be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article XII.  For this purpose, the Working Party has prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and 
takes note of Lao PDR's Schedule of Concess ions and Commitments on Goods (document 
WT/ACC/LAO/…/Add.1) and its Schedule of Specific Commitments on Services (document WT/ACC/LAO/…/Add.2) that are annexed to the Protoc ol.  It is proposed that these texts be adopted 
by the General Council when it adopts the Report.  When the Decision is adopted, the Protocol of WT/ACC/SPEC/LAO/5 
Page 86  
 
  Accession would be open for acceptance by Lao PD R which would become a Member thirty days 
after it accepts the said Protocol.  The Working Part y agreed, therefore, that it had completed its work 
concerning the negotiations for the accession of La o PDR to the Marrakesh Agreement Establishing 
the WTO.   WT/ACC/SPEC/LAO/5 
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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; 
- Presidential Decree Law No. 01/P "Governing the Management of Foreign Exchange and 
Precious Metals", dated 17 March 2008; 
- Instruction No. 01/BOL "On Implementation of  Decree Law on Management of Foreign 
Currency and Precious Metals", dated 2 April 2010; 
- Law No. 02/NA "On Investment Promotion" of 8 July 2009; - Decree No. 119/PM "On Implementation of the Investment Promotion Law", dated 
20 April 2011; 
- Decree No. 68/PM "On Adoption of the Negative List", dated 28 April 2008; 
- 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; - Contract and Tort Law No. 01/NA, dated 8 December 2008;   
- 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; 
- Law No. 06/NA "On the Resolution of Econom ic Disputes", dated 17 December 2010;   
- 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; WT/ACC/SPEC/LAO/5 
Page 88  
 
  - Notification No. 750/MOC "On the Implementation of Enterprise Registration Based on the 
Business Law" of 6 August 1996; 
- Decree No. 474/PM "On the Administration of Prices of Goods and Services", dated 
18 November 2010; 
- Decree No. 207/PMO "On Goods Trading Business" of 11 October 2001; 
- Decree No.114/GoL "On Import and Export of Goods", dated 6 April 2011 
- 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; - List of Chemical Products Under Restricted Control No. 1364/95/DFM of September 1995; - Decree No. 03/PR "On the Preservation of Cultu ral, 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. 0826/MOIC.DIMEX "On the Automatic and Non-automatic Licensing of 
Import and Export of Goods", dated 3 May 2011:   
- Annex 1:  Goods subject to non-auto matic import and export licensing; and 
- Annex 2:  Goods subject to automatic import and export licensing;   
- Notification No. 0076/MOIC.DIMEX "On the Li st of Goods subject to Automatic and 
Non automatic Import and Export Licensing" of 13 January 2012; 
- 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; - Guidance No. 0491/MOF "On the Implementation of the Customs Law No. 05/NA dated 
20 May 2005 and Decree Implementing th e Customs Law" dated 12 March 2009; 
- Instruction No. 1398/PM "On Custom s Valuation" dated 16 June 2010; 
- Instruction No. 2401/CD of the Director-General of the Customs Department "On Customs 
Valuation for Imported Goods", dated 29 September 2010. 
- 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; - Ministerial Decision No. 0039/MoAF "On the Basic Principles for the Application of Sanitary 
and Phytosanitary Measures in Plant and Animal Product Administration", dated 
11 January 2012;  
- Decree No. 363/PM "On the Notification and E nquiry of Trade Related Information" dated 
19 August 2010; 
- Decision No. 0471/MOIC "On Notification Unit of Sanitary-Phytosanitary Measures and 
Technical Barriers to Trade", dated 9 March 2011;  WT/ACC/SPEC/LAO/5 
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  - Decision No. 1199/NAST-PMO "On the Organization and Operation of Technical Barriers to 
Trade Enquiry Point", dated 22 June 2011; 
- Decision No. 1502/MAF "On the Organization and Operation of Sanitary and Phytosanitary 
Enquiry Point", dated 23 June 2011; 
- Regulation No. 519/MoH "On Labelling of Pre-packaged Food", dated 18 March 2009;  
- Law No. 06/NA "On Plant Protection", dated 9 December 2008;  
- 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; 
- Fisheries Law No. 03/NA, dated 9 July 2009; - Resolution No. 09/PMO endorsing "The National Science and Technology Policy of 
Lao PDR up to the year 2010" of 27 November 2003;  
- 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; - Decree No. 443/PM "On Special Economic Zone and Specific Economic Zone in the 
Lao PDR", dated 26 October 2010; 
- 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; - Instruction No. 1970/MOF "On Customs Measures for the Protection of Intellectual Property 
Rights", dated 8 September 2011; 
- 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; WT/ACC/SPEC/LAO/5 
Page 90  
 
  - Presidential Decree No. 06/PO "On the Prom ulgation of the Amended Law on Court Fees", 
dated 16 January 2007;   
- Presidential Decree No. 137/PO "On the Pr omulgation of the Law on the Handling of 
Petitions", dated 9 December 2005;   
- Presidential Decree No. 34/PO "On the Prom ulgation of the Amended Law on Criminal 
Procedure", dated 14 June 2004; 
- Presidential Decree No. 04/PO "On the Promulgation of the Penal Law", dated 
9 January 1990; 
- Decision No. 0349/MOIC.FTPD "On GATS E nquiry Point", dated 22 February 2011; 
- Law No. 04/NA "On Judgement Enforcement (Amended)", dated 8 July 2008;   
- 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; - Decree No. 275/PM "On the Implementation of the Law on Commercial Bank", dated 
25 September 2009;   
- 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/5 
 Page 91 
 
 
  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 televi sion 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/5 
Page 92  
 
  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/5 
 Page 93 
 
 
  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/5 
Page 94  
 
   
B. Other State-Owned Enterprises 
No. Names Responsible agen cy Products or services 
17. Lao National Tourism Prime Mini ster's Office Tourist services 
18. Education Printing Enterprise Ministry of Education Education printing services 
19. Education Equipment Printing  Lao Youth Union  Educational equipment 
20. Electricité du Laos Ministry of Energy and Mining Electricity  
21. National Lottery Co. Ministry of Finance Lottery 
22. Lao Labour Services Co. Ministry of Labour and Social 
Welfare Employment services 
23. Banque Pour Le Commerce 
Extérieur 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 National 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. National Authority of Post and 
Telecommunication Communication and design 
34. River survey and Design Co. Ministry 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/5 
 Page 95 
 
 
  Table 7: Fees on or in Connection with Importation or Exportation 
Fee or Charge for Services Rendered Amount of Fee or Charge Ministry or Agency Responsible 
Inspection of imported medicines KN 20,000 per invoice Ministry of Health 
Foodstuffs: 
- Issuing a permit for imports - Biennial registration of imported 
products  
KN 20,000 per invoice  KN 50,000 per product 
registered  
Ministry of Health  Ministry of Health 
Quality inspection of import of fuel, steel bar and cement KN 600,000 per invoice Ministry of Science and 
Technology 
Fee for Import or Export Licence - Import licence for vehicles and parts  
- Import licence for machines, raw 
materials, semi-final products or other parts for installation, manufacturing, 
assembly or processing in factories   
KN 10,000 per set 
KN 40,000 per set Ministry of Industry and 
Commerce and relevant 
competent licensing authorities 
Customs Processing Fee for Import and 
Export 
1. Certificate of Vehicles duty payment; 
2. Customs declaration form (large); 3. Customs declaration form (attachment 
form); 
4. Customs seal; 5. Sticker (D9); 
6. Duty stamp(big one); 
7. Duty stamp (medium, small); 8. Stamp for duty free alcohol, stamp for 
cigarette; 
9. Certificate of duty payment of vehicle 
for those produced and assembled in 
the system of IKD; 
10. Customs declaration form for vehicle 
for touring (D53); 
11. Customs declaratio n form for guarantee 
(large one D86); 
12. Customs declaratio n form for guarantee 
(attachment form) (D86); 
13. Retail customs declaration form (D44); 
14. Service charge of customs data 
management system;  
 
KN 2,000 
KN 500 KN 250 
 
KN 3,000 KN 4,000 
KN 600 
KN 500 KN 1,500 
 
KN 2,000  
 
KN 2,000  
KN 500 
 KN 250 
 
KN 500 
KN 100,000 
 Customs Service 
Warehouse fees Fees are collected in 
non-ad valorem , depending 
on type of goods and 
period of storage. Warehouse authorities WT/ACC/SPEC/LAO/5 
Page 96  
 
  Table 8: 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, cigarette s 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 2,000 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 an 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-conditioners, satellite TV signal receivers, 
audio-video players, cameras, audio-video recorders, musical instruments, 
including components and accessories 15 
10. Freezers, water heaters, washin g machines, vacuum cleaners 10 
11. Importation, sales and services of billia rd/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/5
 Page 97Table 9: Import Prohibitions 
No. HS Code Goods Purpose Regulation Supervising authority 
1. NA Chemicals of high-level danger used in 
industries  For protection of health, 
safety of human and 
environment   At present the governing regulation 
is being drafted and expected to be 
issued by March 2011. 
 Decree on Import and Export of 
Goods No. 114/GoL dated 
6 April 2011. Ministry of Industry and Commerce 
(Industry Department) 
2. 8710.00.00 
9301 
9302.00.00 
9306 Bullets and weapons of all kinds (except 
for explosives used in industries ) and 
war vehicles For public order and 
national security  Articles 76 & 77 of Criminal Law 
No. 12/NA, dated 9 November 2005. 
 Prime Minister’s Decision on the 
Control and Use of Explosives in Lao PDR No. 39/PM, dated 
12 July 2001. Ministry of National Defense (Advisory 
Major Department) 
3. 1211.40.00 
1211.30 1211.90.12 
1207.91.00 
1302.11 2939.11.00 
2939.19.00 
2939.91.10 Opium 
Opium balls, poppy seeds Opium poppies, other finished and dried 
opium poppies made from coco leaves, 
marihuana in various forms, cocaine and their derivatives   For public order and 
national security  Article 146 of Criminal Law No. 
12/NA, dated 9 November 2005. 
 Law on Narcotic Drugs. 
 Decree implementing Law on 
Narcotic Drugs No. 076/PM, dated 20 February 2009. Ministry of Public Security   
(Narcotic Drug Control Police)  
Prime Minister’s Office  
(Narcotic Drug Control and Inspection Authority) 
4. NA Destructive fishing tools  For sustainable 
conservation of aquatic 
fauna and environment   Fisheries Law. Ministry of Agriculture and Forestry 
( Department of Livestock and Fishery) 
5. NA Pornographic medias / materials  For protection of fine 
tradition   Law on Printings No. 05/NA, dated 
9 December 2008. Ministry of Information and Culture  
(Media Department) 
6. 3215.19.00 
4802.62.90 
8443.19.00 
8454.30.00 Banknote paper, banknote ink, banknote 
printer and coin making machine  For financial stability   Article 4 scope of rights of banks, 
Law on Bank of Lao PDR 
No. 05/NA dated 14 October 1999. Bank of Lao PDR 
(Stock-Monetary Department) WT/ACC/SPEC/LAO/5 
Page 98  
 
  Table 10: Goods Subject to Non-Automatic Import Licensing 
 
No HS Code Product Reason Responsible Agencies 
1. 93.03.20 
93.03.30 Guns and bullets for 
sportive purposes  For safety of public and national security Ministry of National Defense 
(National Defense Department) 
2. 36.02 
36.03 Explosives used in 
industries: 
- explosives - explosive equipment 
- explosive objects 
- fireworks 
 For safety of public and 
national security  Ministry of National Defense 
(National Defense Industry 
Department 
3. 7108.12.10 Gold bars (only for 
gold bars as 
internationally 
recognized as medium of payment) For exchange stability Bank of Lao PDR 
(Monetary Policy Department) 
  WT/ACC/SPEC/LAO/5 
 Page 99 
 
 
  Table 11: Goods Subject to Automatic Import Licensing 
No. HS Code Products Reasons Responsible Agencies 
1. 8701.20 
8701.30.20 
8701.90 
87.02 87.03 
87.04 
87.05 87.11 Road vehicles, except road 
vehicles with three wheels 
(87.04.31) For statistical and 
import monitoring 
purpose Ministry of Industry and Commerce
(Department of Import and Export) 
2. 27.10 
27.11 Petroleum and Gas For statistical and 
import monitoring 
purpose Ministry of Industry and Commerce
(Department of Import and Export) 
3. 4403 
4407.10-
4407.28 
0601 Logs, trunks, barks and 
rough-processed timber For statistical and 
import monitoring 
purpose Ministry of Industry and Commerce
(Department of Import and Export) 
4. 1006 
 Rice, Rice in the husk, 
husked (brown) rice,  semi-
milled or wholly milled rice, whether or not 
polished or glazed For statistical and 
import monitoring 
purpose Provincial, Vientiane Capital 
Department of Industry and 
Commerce 
5. 72.13  
72.14 72.15 
72.16 Bars and rods, hot-rolled, in 
irregularly wound coils, of iron or non-alloy steel; 
Other bars and rods of iron 
or non-alloy steel, not further worked than forged, 
hot-rolled, hot-drawn or 
hot-extruded, but including those twisted after rolling; 
Other bars and rods of iron 
or non-alloyed steel;  Angles, shapes and sections 
of iron or non-alloy steel. For statistical and 
import monitoring purpose Provincial, Vientiane Capital 
Department of Industry and Commerce 
6. 25.23 
38.16 Cement, mortar, concrete For statistical and 
import monitoring purpose Provincial, Vientiane Capital 
Department of Industry and Commerce 
7. 4901 
4903 4905.91.00 
4905.99.00 
4906  Publications For statistical and 
import monitoring purpose Ministry of Information, Culture 
and Tourism (Department of Publication) 
8. 26.01-26.17 
 Minerals and mineral 
products For statistical and 
import monitoring 
purpose Ministry of Energy and Mines 
(Mining Department) 
9. 84.67.81.00 
84.67.89.00 
84.67.91.10 Timber exploitation 
machines, logging 
machines, chain saws 
including parts and equipment's thereof For statistical and 
import monitoring 
purpose Ministry of Agriculture and 
Forestry 
(Forestry Department) 
 
 WT/ACC/SPEC/LAO/5 
Page 100  
 
  Table 12: List of Products Eligible for Safeguard Measures during Transition Period 
 
HS Code Description 
0201.10.00 - Carcasses and half-carcasses 
0201.20.00 - Other cuts with bone in 
0201.30.00 - Boneless 
0202.10.00 - Carcasses and half-carcasses 
0202.20.00 - Other cuts with bone in  
0202.30.00 - Boneless 
0203.11.00 - - Carcasses and half-carcasses 
0203.12.00 - - Hams, shoulders and cuts thereof, with bone in 
0203.19.00 - - Other 
0203.21.00 - - Carcasses and half-carcasses 
0203.22.00 - - Hams, shoulders and cuts thereof, with bone in 
0203.29.00 - - Other 
0206.49.00 - - Other  
0206.90.00 - Other, frozen  
0207.11.00 - - Not cut in  pieces, fresh or chilled 
0207.12.00 - - Not cu t in pieces, frozen 
0207.13.00 - - Cuts and offal, fresh or chilled 
0207.14.10 - - - Wings 
0207.14.20 - - - Thighs 
0207.14.90 - - - Other 
0207.24.00 - - Not cut in  pieces, fresh or chilled 
0207.25.00 - - Not cu t in pieces, frozen 
0207.26.00 - - Cuts and offal, fresh or chilled 
0207.27.10 - - - Livers 
0207.27.90 - - - Other 
0207.32.10 - - - Of ducks 
0407.00.11 - - Hens' eggs 
0407.00.12 - - Ducks' eggs 
0407.00.19 - - Other 
0407.00.91 - - Hens' eggs 
0407.00.92 - - Ducks eggs 
0407.00.99 - - Other 
0702.00.00 Tomatoes, fresh or chilled. 
0704.10.10 - - Cauliflowers 
0710.40.00 - Sweet corn 
0710.80.00 - Other vegetables 
0710.90.00 - Mixtures of vegetables 
0805.10.00 - Oranges 
0805.50.00 - Lemons (Citrus limon, Citrus limonum) and limes (Citrus aurantifolia,  
0807.19.00 - - Other 
0807.20.00 - Papaws (papayas) 
0813.40.00 - Other fruit  
0813.50.00 - Mixtures of nuts or dried fruits of this Chapter 
1006.10.90 - - Other   
1006.20.10 - - Thai Hom Mali rice   
1006.20.90 - - Other  
1006.30.11 - - - Whole 
1006.30.12 - - - Not more than 5% broken  
1006.30.13 - - - More than 5% but not more than 10% broken 
1006.30.14 - - - More than 10% but not more than 25% broken   
1006.30.19 - - - Other   WT/ACC/SPEC/LAO/5 
 Page 101 
 
 
  HS Code Description 
1006.30.20 - - Parboiled rice 
1006.30.30 - - Glutinous rice (pulot) 
1006.30.40 - - Basmati rice 
1006.30.50 - - Thai Hom Mali rice   
1006.30.61 - - - Whole 
1006.30.62 - - - Not more than 5% broken  
1006.30.63 - - - More than 5% but not more than 10% broken 
1006.30.64 - - - More than 10% but not more than 25% broken  
1006.30.69 - - - Other  
1006.40.00 - Broken rice  
2401.30.10 - - Tobacco stems  
2401.30.90 - - Other  
 
 WT/ACC/SPEC/LAO/5 
Page 102  
 
  Table 14: Export Prohibitions 
No. HS Code Goods Purpose Regulation Supervising authority 
1. 9705.00.00 
9706.00.00 Archaeological objects 
including Buddha statues, angel statues 
and holy objects, 
national heritages with historical and cultural 
values of 50 years old 
or older.   For protection 
of national artistic and 
cultural heritage 
"protection of valuable 
national artistic, 
historical and archaeological 
heritage" in 
compliance with Article XX (f) 
of GATT 1994. Article 15 of 
Customs Law. National Heritage 
Law. 
Article 2 Edict on Preservation of 
National cultural, 
historical and natural heritage.  Ministry of 
Information and Culture  
(Heritage 
Department) 
2. 2834 Bat guano/manure  For protection 
of natural 
resources  Article 29, 
Agriculture Law, 
No. 01/98.NA, dated 
10 October 1998. Order of the Minister 
of Agriculture and 
Forestry on the Control and Use of 
Bat Guano in the 
Country No. 0613/MoAF.05, 
dated 8 July 2005. Ministry of 
Agriculture and 
Forestry  
(Agriculture Department)  WT/ACC/SPEC/LAO/5 
 Page 103 
 
 
  Table 15:  Goods Subject to Non-Automatic Export Licensing 
No HS Code Product Reason Responsible Agencies 
1. 4403 
4407.10-4407.28 
0601 Logs, trunk, bark, rough-
processed timber and semi-finished timber from natural 
forest For monitoring the 
conformity of the implement the Chain of 
Custody System (CoC) Ministry of Industry and 
Commerce (Department of Import and 
Export) 
2. 7108.12.10 Gold bars ( only for gold bars as 
internationally recognized as medium of payment) For exchange stability Bank of Lao PDR 
(Monetary Policy Department) 
 WT/ACC/SPEC/LAO/5 
Page 104  
 
  Table 16:  Goods Subject to Automatic Export Licensing 
No HS Code Products Reasons Responsible Agencies 
1. 4403 
4407.10-4407.28 
0601 Logs, trunk, bark, rough-
processed timber and semi-finished timber from 
plantations For monitoring the 
conformity of the implement the Chain of 
Custody System (CoC) Ministry of Industry and 
Commerce (Department of Import and 
Export) 
2. 1006 Rice, Rice in the husk, husked 
(brown) rice,  semi-milled or 
wholly milled rice, whether or not polished or glazed For statistical purpose Provincial, Vientiane 
Capital Department of 
Industry and Commerce 
3. 2601-2617 Minerals and mineral products For statistical purpose Ministry of Energy and 
Mines (Mining Department)  
   WT/ACC/SPEC/LAO/5
 Page 105Table 19:  Action Plan for the Implementation of the WTO TRIPS Agreement 
WTO 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 
 
 
 
- Rome Convention - Washington Treaty on Intellectual Property in 
Respect of Integrated Circuits  
 Since 1995 
Since 1998 
Since 2006 Accession instrument deposited on 
14 December 2011, which will be 
effective from 14 March 2012. 
 
Deferred Deferred  
  
 
 TA provided by USAID for raising 
awareness on the Be rne Convention.  
 
 
(Deferred due to technical capacity limitations.  Priority has been given to 
ensuring legal framework compliance 
with TRIPS). 
Part II, Section 1: Copyrights and related rights Intellectual Property Law  
(all elements which were initially intended to be put in 
decrees and regulations have been incorporated into 
the 2011 amended IP Law)    
Regulation on Notification of Copyright and Related 
Rights Amended in December 2011 
 
 
  
To be amended by June 2012 TA received from ACWL and USAID.  
 
 
  
TA sought from development partners. 
Part II, Section 2: 
Trademarks Intellectual Property Law  
 
Regulation on trademarks  
 Trademarks Registry System Amended in December 2011 
 
To be issued by June 2012 
 Set up in 1991 In force. 
 
TA sought from development partners. 
 TA received from EU and USAID. 
Part II, Section 3: 
Geographical indications Intellectual Property Law 
 
Regulation on geographical indications 
 
Setting up of the Geographical Indications Registry. Amended in December 2011 
 
To be issued by December 2012 
 
To be set up by December 2012 In force. 
 
TA sought from development partners. 
 
TA sought from EU and USAID.  
  WT/ACC/SPEC/LAO/5 
Page 106 WTO Agreement on Trade 
Related Aspects of Intellectual 
Property Rights Laws/Actions Implementation Timeframe Remarks 
Part II, Section 4: 
Industrial designs Intellectual Property Law 
 Regulation on industrial designs 
 
Setting up of the Industrial Designs Registry Amended in December 2011 
 To be issued by June 2012 
 
Set up in 2002 In force. 
 TA sought from development partners. 
 
TA received from EU, USAID and WIPO. 
Part II, Section 5: 
Patents Intellectual Property Law 
 
Regulation on patents and petty patents  
Setting up of the Patent Registry Amended in December 2011 
 
To be issued by June 2012  
Set up in 2002 TA sought from development partners. 
 
TA sought from development partners.  
TA received from EU, USAID and 
WIPO. 
Part II, Section 6: Layout-designs (Topographies) 
of integrated circuit Intellectual Property Law 
 
Regulation on integrated circuit Amended in December 2011 
 
To be issued by December 2012 In force. 
 
TA sought from development partners. 
Part II, Section 7: 
Undisclosed information Intellectual Property Law 
 
Decree on Trade Competition Amended in December 2011 
 
April 2004 In force. 
 
In force. 
Part II, Section 8: 
Control of anti-competitive practices in contractual licence Intellectual Property Law  
 Decree on Trade Competition Amended in December 2011 
 April 2004 In force 
 In force.  
   WT/ACC/SPEC/LAO/5
 Page 107WTO Agreement on Trade 
Related Aspects of Intellectual 
Property Rights Laws/Actions Implementation Timeframe Remarks 
Part III, Section 2: 
Civil and administrative procedures and remedies Law on Civil Procedures 
 Criminal Law 
 
Petition Handling Law  
Court Fee Law  
 Law on People's Courts 
 
Judgment Enforcement Law  
Contract and Tort Law 
 Economic Dispute Resolution Law 
 
Intellectual Property Law 
 
Establishment of Copyright and Related Rights Information Section under Copyright Division. 
 
Establishment of Geographical Indications Information Section under Industrial Property Division. Amended in May 2004 
 Amended in November 2005 
 
Amended in November 2005  
Amended in December 2006 
 Amended in November 2009  
 
Amended in July 2008   
Amended in December 2008 
 Amended in December 2010 
 
Amended in December 2011 
 
Established in 2009  
 
Established in 2011 In force. 
 In force. 
 
In force.  
In force. 
 In force. 
 
In force.  
In force. 
 In force. 
 
In force. 
 
TA received from  EU and USAID 
Projects. 
 
TA received from  EU and USAID 
Projects. 
Part III, Section 4: 
Special requirements related to 
border measures Intellectual Property Law 
 
Customs Law  
Instruction on Customs Measures for the Protection of 
Intellectual Property Rights Amended in December 2011 
 
Amended in December 2011  
Issued in September 2011 TA received from USAID.  
 
TA received from USAID.   
TA received from ACWL and USAID. 
Part III, Section 5: 
Criminal procedures Criminal Procedure Law  
 
Intellectual Property Law Amended in May 2004 
 
Amended in December 2011 In force. 
 
In force.  
  WT/ACC/SPEC/LAO/5 
Page 108 WTO Agreement on Trade 
Related Aspects of Intellectual 
Property Rights Laws/Actions Implementation Timeframe Remarks 
Others Enhance public awareness on the protection of 
intellectual property rights.  
Upgrade computeri zation of MOST. 
  
Upgrade computerization of  enforcement agencies. 
  
Trainings for users (development of information brochure 
and training program).  
Trainings of personnel involved in copyrights and 
industrial property protection such as customs officials, 
policemen, judges, prosecuto rs and lawyers on the 
prevention and control of copyright piracy and trademark 
counterfeiting. 2012 to 2015 
  
2012 to 2015 
  
2012 to 2015 
  
2012 to 2015 
  
2012 to 2015 TA sought and received from ACWL, 
EU, KIPO, SIDA, USAID and WIPO.   
TA sought and received from ACWL, 
EU, KIPO, SIDA, USAID and WIPO.   
TA sought and received from ACWL, 
EU, KIPO, SIDA, USAID and WIPO.   
TA sought and received from ACWL, 
EU, KIPO, SIDA, USAID and WIPO.   
TA sought and received from ACWL, 
EU, KIPO, SIDA, USAID and WIPO.  
Note:  The above transition strategy for the implementation of WTO Agreement on Trade-Related Aspect of Intellectual Property R ights (TRIPS) would be achieved latest by 
December 2015 based on tec hnical assistance and national capacity.  The Lao PDR Government avails itsel f to special and differe ntial treatment for Least-Developed-Countries 
under the TRIPS Agreement and various Minister ial Conference Declarations such as paragr aph 47 of the Hong Kong Ministerial Dec laration and refers in IP/C/40.  WT/ACC/SPEC/LAO/5 
 Page 109 
 
 
  Table 20:  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  
 
  
 
 
30 
20 
40 20 
50 
20 
60 
40 80 
60 
100 
80 
140 
100 180 
120 
230 150 
280 
180 330 
210 
390 250 WT/ACC/SPEC/LAO/5 
Page 110  
 
  Action Fee (US$ per mark or item) 
- 17th year: Official fee 
   Services fee 
- 18th year: Official fee    Services fee 
- 19th year: Official fee 
   Services fee 
- 20th year: Official fee 
   Services fee 450 
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)  WT/ACC/SPEC/LAO/5 
 Page 111 
 
 
  Action Fee (US$ per mark or item) 
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 
   Services fee 
- 4th year: Official fee    Services fee 
- 5th year: Official fee 
   Services fee - 6th year – 15th year: 
   Official fee 
   Services fee  
 
 
10 
5 
15 
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. 
 
 
__________