RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/LAO/11 
20 July 2007 
 (07-3087) 
Working Party on the 
Accession of Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Additional Questions and Replies  
 
 
 The following submission, dated 9 July 2007, is being circulated at the request of the Government of Lao People's Democratic Republic (Lao PDR).  
_______________  WT/ACC/LAO/11 
 Page i 
 
 
TABLE OF CONTENTS 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE ......................................1  
2. Economic Policies.............................................................................................................. ........1  
(a) Main direction of ongoing  economic policies..........................................................................1  
(c) Foreign exchange and payments system .................................................................................2  
(d) Foreign and domestic in vestment policies ..............................................................................4  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................8  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................9  
- Trading Rights ................................................................................................................. .........9  
1. Import Regulation.............................................................................................................. .......9  
(a) Registration requirements for engaging in importing...........................................................9  
(e) Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............12  
(f) Import licensing procedures ..................................................................................................17  
(h) Customs valuation.............................................................................................................. .....19  
(k) Application of internal taxes on imports...............................................................................20  
(l) Rules of origin ................................................................................................................ .........22  
2. Export Regulation.............................................................................................................. .....22  
(d) Export licensing procedures...................................................................................................2 2 
(g) Export performan ce requirements........................................................................................22  
3. Internal policies affecting foreign trade in goods.................................................................23  
(a) Industrial policy, including subsidy policies.........................................................................23  
(b) Technical regulations and standards ....................................................................................24  
(c) Sanitary and phytosanitary measures...................................................................................28  
(d) Trade-related investment measures ......................................................................................34  
(e) State-trading practices........................................................................................................ ....36  
(g) Free economic zones ............................................................................................................ ...36 
4. Policies affecting foreign trade in agricultural products.....................................................38  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................41  
1. General........................................................................................................................ .............41  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................42  
(a) Copyright and related rights..................................................................................................4 2 
(b) Trademarks, including  service marks...................................................................................43  
(e) Patents........................................................................................................................ ..............49  
4. Enforcement .................................................................................................................... ........50  WT/ACC/LAO/11 
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VI. TRADE-RELATED SE RVICES REGIME .........................................................................54  
ANNEX 1 ........................................................................................................................ ......................56  
ANNEX 2 ........................................................................................................................ ......................57  
 
  WT/ACC/LAO/11 
 Page 1 
 
 
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE 
2. Economic Policies (a) Main direction of ongoing economic policies Question 1 
We note that in the reply to Question 1 (WT/ACC/LAO/5), Lao PDR said it intends to provide a 
"market information program" to develop its ag riculture.  Please provide the Working Party 
with information on Lao PDR's workforce skilled  in collecting, analyzing, and disseminating 
agricultural market information. 
Answer:
 
In Lao PDR, the agencies involved with market information systems include (a) Ministry of 
Agriculture and Forestry (IT Center); (b) Minist ry of Industry and Commerce (MOIC); and (c) the 
National Statistics Center (NSC). 
Altogether at the Ministry of Agriculture and Fo restry (MAF), there are approximately 21 Lao PDR 
staff who have been trained in collecting, an alyzing and disseminating agriculture and market 
information.  Although they are trained staff, furthe r organization of the various actors remains to be 
done in order to enable an integrated a nd well-functioning system to be established. 
Presently, MOIC collects market information, in cluding on agriculture but need resources to 
disseminate widely.  The NSC also collects agricu lture and other market information from around the 
country and provides some market inform ation via its publications and website. 
The MAF is trying to facilitate the organizationa l coordination of all players so that market 
information is disseminated to farmers, agricu lture offices in provinces and districts, business 
associations, the private sector and the general public .  It has designed a system for reaching this 
objective, but as in other LDCs the MAF continues to experience difficulty in obtaining data. 
- Pricing Policy  
Question 2  
We appreciate the responses to our question in relat ion to price controls on 30 products.  We 
understand that most of the 30 products are only subject to "price surveillance", which 
according to the reply to Question 4 in WT /ACC/LAO/5 involves Trade Officials undertaking 
"spot checks to check adherence to pricing regul ations".  Aside from the requirement to 
"display the prices of products", are there additional "price regulations" that must be adhered to? 
Answer:
 
Instruction No. 0334/MOC/ITD dated 22 March 2002 re lates to price surveillance of 30 products of 
which three products are subjected to maximum prices for reasons of economic development and 
social welfare.  Decree 207/PM re quires the traders to maintain pr oper book-keeping and to cooperate 
with officials who undertake price surveillance.  It al so provides traders the right to appeal against the 
decision of inspecting officials. WT/ACC/LAO/11 
Page 2 
 
 
Question 3 
Could Lao PDR explain how the regulation of the maximum price is carried out in practice as 
regards steel for construction and cement both in respect of domestic and imported products? 
Answer:  
The maximum price is only set for domestically prod uced cement and construction steel.  There is no 
price control on similar imported products. 
Question 4  
Are domestic producers of Steel and cement suppor ted financially by the State due to the system 
of maximum prices? 
Answer:  
Currently, the Lao PDR Government does not provid e any financial support to domestic producers of 
steel and cement. 
(c) Foreign exchange and payments system 
Question 5  Page 1 of the IMF's Article IV for Lao PDR, dated 21 February 2006 notes that Lao PDR 
maintains exchange restrictions imposed for th e preservation of national or international 
security which have been notified pursuant to IMF Decision No. 144-52/51, and a restriction subject to Fund approval under Article VII (tax payment certificates are required for some 
transactions).  The IMF does not recommend approval  of this restriction, and has urged the Lao 
PDR authorities to eliminate it before it accepts the obligations under Article VIII. 
Page 27 of that Article IV notes that in August 2004 the IMF conducted an analysis of your 
exchange system to determine what restrictions  remained that prevent Lao PDR from accepting 
the obligations of IMF Article VIII, including the elimination of the exchange restriction on the making of payments and transfers for current international transactions. 
The IMF's 2006 report on Exchange Arrangements and Exchange Restrictions shows that Lao 
PDR has both repatriation and surrender requireme nts.  The repatriation requirement is as 
follows:  Income from exports must be repatriat ed within 120 days of delivery at the Border 
(date of fob shipment) except for income used for external loan repayments approved by the 
Central Bank, or funds use for payment of a le tter of credit approved by the Central Bank, or 
specified in a contract between an foreign investor and the Government of Lao PDR.  The surrender requirement is that receipts from the ex port of wood and wood products must be 
surrendered to State-owned commercial banks aft er all payments due to the Government have 
been settled, as follows:  80 per cent for export s of sawed timber and 60 per cent for exports of 
wood products. 
We note that in WT/ACC/LAO/9, dated 30 October 2006, the Government of Lao PDR 
specified two laws on foreign exchange contro l:  (1) Decree Law on Foreign Exchange and 
Precious Metals (2002); and (2) Instruction on  Implementation of Decree Law on Management 
of Foreign Currency and Precious Metals (2003). 
In WT/ACC/LAO/9, Section II, Legislative Action Plan (Item 4), we note that the Decree Law 
will be revised by the Central Bank and appr oved by the National Assembly in 2008.  WT/ACC/LAO/11 
 Page 3 
 
 
We have the following questions on these reports, developments and requirements: 
(i) Can you describe your exchange regime?  Wh at reforms do you plan to undertake and 
what is the timetable for implementing th e changes?  May we review the draft law? 
(ii) Can you provide us with a copy of the IM F's analysis of the foreign exchange system, 
and indicate how you are proceeding in meet ing the IMF's requirements to prepare to 
accept the Obligations of Article VIII? 
(iii) With regard to Lao PDR's repatriation and surrender requirements, do you have a 
timetable for eliminating these requirements? 
(iv) What is the Lao PDR's timetable for eliminating the specific restriction that IMF staff 
recommended be done before Lao PDR accepts the obligations of Article VIII (tax 
payment certificates are required  for some transactions)? 
Answer:  
Concerning the legal framework on foreign exchange control, in addition to the two legal frameworks 
governing this issue, there is another on e which is called Additional Instruction  on Implementation of 
Decree Law on Foreign Exchange and Precious Metals (2004).  
In August 2004, an IMF mission came to Lao PD R to review the legal framework on foreign 
exchange management.  They found out that the ove rall picture of the current practice by the Bank of 
Lao PDR (BOL) on foreign exchange manageme nt and international payments has been de facto  
liberalized for current account transactions for some time.  However, there re main a few elements in 
relevant legal framework that need to be review ed or amended before declaring the acceptance of 
Article VIII status in the IMF membership. 
The Government is aware of this recommendation.  However, Lao PDR needs sometime to get the 
laws and regulations ame nded or changed since they have just  been recently adopted (Decree Law 
in 2002). 
Lao PDR's foreign exchange regime is a manage d floating system.  The reforms the Government 
plans to take and the timetable for im plementing the changes are as follows: 
- The amendment of the Decree Law No. 1 on the Management of Foreign Exchange and 
Precious Metals is scheduled to be complete d by the third quarter of 2007 and the IMF's 
recommendations to amend Article 13 about the exchange rate to be determined by the 
market and Article 27 about the tax certificates  before sending profits abroad have been 
reflected in this draft amendment. 
- The amendment of Instruction No. 2/BOL of 2003 and the Additional Instruction No. 1/BOL 
of 2004 on the implementation of Decree Law No. 1 on the Management of Foreign 
Exchange and Precious Metals is scheduled to be completed before December 2008.  On the 
repatriation requirement of foreign exchange within 120 days, the BOL is reviewing this 
stipulation.  However, the residents of La o PDR who export, except those who have been 
given specific permission, must bring their proceeds back through any commercial banks located in Lao PDR within a specific period. In  so doing, the IMF's recommendations will be 
reflected in this amendment. 
- Lao PDR also plans to abolish Regulations No. 1/BOL of 2000 on the surrender requirement 
of transaction payments of wood and sawn wood by December 2008. 
 In meeting the IMF's requirements to prepare to accept the Obligations of Article VIII, the 
Government has been working on the amendments  of the above-mentioned legal frameworks under 
the supervision of the Bank of the Lao PDR as recommended by the IMF. 
 WT/ACC/LAO/11 
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Question 6 
Could Lao PDR please define more clearly what are the "additional administrative 
requirements" for foreign currency transact ions above US$10,000 as mentioned in your 
response to Question 1 of WT/ACC/LAO/8? 
Answer:  
Purchases of beyond a threshold level of US $10,000 are subject to additional administrative 
requirements.  This refers to the threshold leve l of daily withdrawal of  cash from a person's bank 
account (and not the purchase of foreign currency or  making a settlement through the banking system, 
for which there is no quota).  A person wishing to withdraw more than US$10,000 in cash is subject 
to due diligence or know-your-customers procedur e of the concerned commercial bank (Additional 
Instruction No. 1/BOL dated 5 February 2004, a nd Instruction No. 2/BOL dated 29 September 2003).  
(d) Foreign and domestic investment policies 
Question 7 Could Lao PDR please provide a greater descriptio n, even in general terms, of the types of 
TRIMs that are provided for within its foreign in vestment laws?  What are the provisions of the 
laws that allow for TRIMs to be applied, and in practice, what are the extent (sectoral coverage, 
level) of TRIMs? 
Answer:
 
The provision on the use of local content and expor t performance is contained in the implementing 
decree No. 301/PM of the Law on the Promotion of Foreign Investment No. 11/NA, dated 
22 October 2004.  
Under the local content requirement, any importation of a particular product/material that is not 
available domestically is granted either dut y remission or exemption for the imported 
product/material.  If the product/material is availabl e locally, the industry can import its requirements 
subject to payment of the full import duty. 
Under the export performance requirement, the eligib ility for investment incen tives is tied to the 
percentage of export.  A firm that exports 80 pe r cent and above will qualify for the full range of 
incentives.  
Question 8 
Can Lao PDR indicate whether the 1994 Investme nt Law (and associated implementing Decree 
of 1995) are no longer in force or have been repealed? 
Answer:  
The Foreign Investment Law of 1994 and its im plementing Decree have been replaced by the 
amended Foreign Investment Promotion Law of 2004 and its implementing Decree of 2005.  
Question 9  
Domestic investment law: 
(i) Article 6.1. stipulates that State provides facilities to domestic companies to establish 
and conduct production and businesses and 6.4 stipulates that domestic companies will 
be provided facilities in receiving credit s from various financial institutions.  WT/ACC/LAO/11 
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 - Could Lao explain what kind of facili ties and support are meant here? Is State 
providing domestic companies funds to set up businesses and/or provide them financing in the form of credits? (It is noted that these benefits are not available 
for foreign invested companies.) 
(ii) Article 9.1. 
 - It appears that Lao promotes export production and local contents 
requirements. Can Lao PDR confirm this? We would like to stress that LDCs are exempted from the prohibition of export subsidies under Article 27 ASCM 
(Annex VII), but not from the prohibit ion of local content subsidies. We 
therefore urge Lao PDR to eliminate any local content subsidies upon accession. 
Answer:
 
(i) Article 6.1 of the Domestic Investment Law states that domestic investors will "receive 
support from the Government in establishing a nd operating their production, and business in 
accordance with the laws and regulations".  The same benefit is also provided for foreign investors as stated in Article 12.1 of the Forei gn Investment Law.  Also, Article 6.4 of the 
Domestic Investment Law states that domestic investors will receive support from financial 
institutions in providing credits in accordan ce with the laws and regulations.  The words 
"Facility/facilitate" and "support" literally mean to  provide assistance and help in terms of 
paper work necessary to be ac companied as supplementary documents required by a bank or 
financial institution in their process of consideri ng and approving the loan or credit.  As an 
LDC the Lao Government does not have the re sources to provide any financial support or 
credit. 
 The translation of Article 6.1 of the Domestic  Investment Law and Article12.1 of the Foreign 
Investment Law may be different in terms of word ing, but they are identical in Lao versions.  
(ii) Article 9.1 of the Domestic Investment  Law stipulates that Lao PDR promotes export 
production and import substitution. Lao PDR's po licy is to promote pr oduction for export and 
production for import substitution by giving invest ment incentives in term of tax holidays and 
reduced tax rates as well as enjoying the import duty and tax exemption for the importation of raw materials, machinery and equipment.  Article 9.1 does not specify anything on local 
content and export performance requirements.   
Question 10 
Law on Foreign Investment: 
(i) Article 12 and 13  We note that the foreign workers can only represent maximum 10 per cent of the work 
force of the foreign invested company (Article 12.5). We further note that one of the obligations of foreign investors according to Article 13 is to give priority for Lao 
workers and to train and upgrade their profes sional skills, and to transfer technology to 
Lao workers.  
 Even if we recognise the importance of tec hnology transfer, we do not consider imposing 
an obligation to technology transfer very help ful method for developing the investment 
climate.  WT/ACC/LAO/11 
Page 6 
 
 
 The same applies to restriction to the number of foreign employees. We would therefore 
urge Lao PDR to reconsider such obligations.  
(ii) As regards application procedures for investment licence at CPMI, could Lao PDR 
clarify what is the criteria used by CPMI when assessing whether to accept or reject an 
application? What is the legal basis for these criteria, in which legal instruments it is set 
out? 
(iii) Will the investment licence be automatica lly granted when the application form and 
supplementary documents have been submitted? 
(iv) We note that in general, the time period s for granting investment licenses are longer in 
case of foreign invested companies then in  case of domestic companies. Can Lao PDR 
explain the main reason for the differences?  
(v) We would urge Lao PDR to consider harm onising the time periods for granting the 
licenses for domestic and foreign companies. 
Answer:  
(i) To attract FDI by definition means to attract capital, management and expertise, transfer of 
technologies and create job opportunities for local people.  The Law on the Promotion of 
Foreign Investment was drafted bearing in mind these developmental objectives.  The obligations for using foreign labour not exceeding 10 per cent of the enterprise's labour force, 
providing training for local workers and transfe rring technology, are to enable the Lao people 
to benefit more equitably from FDI. 
(ii) The list of activities open for investors, as provided in the Annex 3 of the Implementing 
Decree of the Law on Promotion of Foreign Inv estment, is used as a basis in deciding the 
approval of an investment licence.  As provide d for in Article 19 of the Law on Promotion of 
Foreign Investment, the CPMI evaluates the feasibility of the project regarding economic, social and environmental aspects of a project, in cluding the pros and cons of the project.  In 
addition, large scale projects, especially those re lated to the use of natural resources, specific 
approval from the cabinet is required.  
 A foreign investor who wishes to establish a foreign investment in the Lao PDR shall 
complete documentation in accordance with Ar ticle 19 of the Law on Promotion of Foreign 
Investment along with other documents as set out by the CPMI and then submit these documents to the CPMI pursuant to a one stop service mechanism.  Investment activities are 
divided into three types (categories 1, 2 and 3).  For each of these, the CPMI receives the 
complete investment application and submits it to relevant sectoral and local agencies for 
examination and comment.  These agencies must re spond within 10-15 official working days 
from the date of receiving the application from th e CPMI.  If they do not respond within this 
time period, it is deemed that such sectoral and local agencies have approved the application.  
Subsequently, the CPMI shall submit the application to the weekly meeting of the CPMI that 
has the participation of the concerned sectoral  agency under the Chairpersonship of the 
Chairman or Vice Chairman of the CPMI for c onsideration (or, for category 3 investments, 
discussion before proposal to the Prime Minister, Vice Prime Minister or to the Government for consideration).  All proposed investments over US$20 million are submitted to Government for consideration. 
(iii) The investment licence will not be automati cally granted after the application form is 
submitted.  The application will be considered  through procedures stated in paragraph (ii) 
above. 
(iv)/(v) The time periods for granting investment  licenses are the same for both foreign companies 
and domestic companies.  WT/ACC/LAO/11 
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Question 11 
Implementing regulation:  Article 11 – Branches Article 11 states that branches can only be est ablished in areas of banking and financial 
institutions, insurance, consulting and airlines. 
- Does Lao PDR have any plans to allow branch es also in other areas, and what would be 
the timetable? We would urge Lao PDR to consider more sectors for branching. 
Answer:
 
At the current stage, branches can only be establis hed in areas of banking and financial institutions, 
insurance, consulting and airlines.  
 
The intention of the law is to promote FDI, be it newly established enterprises or incorporated as 
subsidiaries of foreign companies. 
Question 12 
Annex two – promoted sectors:  - We note that in order to qualify for in centives, foreign companies must use local 
workforce for at least 90 per cent, and to u se more than 50 per cent local raw material 
(local content requirement). We note that th e first requirement is discriminatory and 
not helpful, and the second is incompatible  with TRIMs and Article 27 of the ASCM 
(local contents not allowed for LDCs, export  subsidies OK). We would urge Lao PDR to 
eliminate these measures upon accession. 
Answer:
 
- The obligation for using 90 per cent of local workforce (or not more than 10 per cent of 
foreign labourer as stated in Article 12 of  the Law on Promotion of Foreign Investment 
No. 11/NA) is required as the La o Government is trying to use FDI to create job opportunities 
for its people.  FDI should also help ra ise incomes and achieve the Government's 
developmental objectives.  In the Government 's understanding, the im position of 90 per cent 
utilization of local workforce does not fall in the purview of the TRIMs Agreement. 
- As regards the use of local raw materials, th e Government reiterates its request for transition 
period as provided for LDCs in paragraph 36 of  the Ministerial Declaration in Hong Kong, 
China. 
Question 13 
Annex 4 – prohibited sectors: 
- Is the list of prohibited sectors also applicable  to domestic companies?  If not, explain 
why these sectors are prohibited only  for foreign invested companies? 
Answer:  
With respect to annex 5 (prohibited sectors):  the lis t of prohibited sectors is also applied to domestic 
companies, except for funeral services due  to religious and traditional sensitivity. WT/ACC/LAO/11 
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III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING 
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES 
Question 14 We welcome the Preliminary Legislative Action  Plan (WT/ACC/LAO/9) provided by Lao PDR 
and note the progress to date in passing laws and amendments central to WTO accession.   
- In relation to the new Law on Standards, we note this has been prepared by the Science 
Technology and Environment Agency but is not expected to receive National Assembly 
approval until 2010.  What assistance is Lao PDR PDR receiving in drafting this law, and why is such a lag expected in approval? 
- We would encourage Lao PDR to develop a mo re detailed Action Plan in relation to SPS 
and TBT implementation. 
- In the area of Customs reform, we welc ome that an implementing Decree will be 
adopted in 2007.  Can Lao PDR provide a more detailed plan of which aspects of the Agreement on Customs Valuation it envis ages meeting in 2007 (when Law is adopted) 
and which aspects will require longer implementation. 
Answer:
 
- The draft law on standards is being prepared in consultation with the Government agencies 
and private sector, with the assistance of UNIDO funded by the EU.  The draft law is expected to be submitted to the National A ssembly for its approval no later than 2010.  
Approval in the National Assembly takes time as  draft laws submitted for its approval follow 
a "queue" system. 
- Please see Action Plans on implementing customs valuation, SPS and TBT Agreements, 
submitted in separate documents to the Working Party (WT/ACC/LAO/12-14).   
Question 15 
We welcome advice that Lao PDR is considering the establishment of Commercial Chambers to 
adjudicate in relation to cases concerning bus iness and commerce, including "cases relating to 
the import and export of goods". 
(i) Will such Chambers be empowered to hear and rectify problems arising from 
Government administration of laws and regulations related to trade, or will the jurisdiction only pertain to legal comm ercial disputes between companies and not 
Government administrative action? 
(ii) Will traders be able to appeal any deci sions of the Chambers to a higher court? 
Answer: 
 
(i) With regard to the jurisdiction of the co mmercial chamber, the Civil Procedure Law has 
stipulated in Article 48 that the commercia l chamber has jurisdiction to decide on: 
 1. Cases relating to business or commercial matters; 
 2. Cases relating to business or commercial contracts, or commercial documents such as 
promissory notes, bills of exch ange, cheques and other documents; 
 3. Cases relating to co mmercial loan agreements; 
 4. Cases relating to enterprise bankruptcy and liquidation;  5. Cases relating to business or commercial relationships in connection with the import 
or export of goods, transportation of goods,  insurance, banking and financial services, 
marketing services, and agency;  WT/ACC/LAO/11 
 Page 9 
 
  6. Appeals to decisions or awards by th e Office of Economic Dispute Resolution; and 
 7. Cases relating to violation of copyright and trademarks. 
 The commercial chamber does not have the aut hority to hear and rectify problems arising 
from Government administration of laws and regul ations related to trade.  However, these 
matters can be appealed before the c ourts, see also response to Question 16.  
(ii) Litigants, who are not satisfied with the decisi on of the chambers, have the right to appeal to a 
higher court, the highest being the People's Supreme Court. 
Question 16  
The response provided to Question 15 of document WT/ACC/LAO/5 concerning how the Lao 
PDR intends to observe the requirements of Arti cle X or other WTO provisions concerning the 
right of appeal from administrative decisions to the courts or an independent tribunal did not address the specific question asked.  We request Lao PDR provide a follow up answer that speaks specifically to the right to appeal admini strative decisions to the courts or independent 
tribunal.  
Answer: 
 
Under the laws of the Lao PDR, na tural persons or legal entities have the rights to lodge complaints to 
the courts in order to protect their rights and interests in accordance with the law.  
In the case of customs matters, any aggrieved party to a decision made by the customs authority, may 
file an appeal to an immediate higher customs aut hority.  If they cannot solve the problems or in cases 
where the party considers the appeal is not approp riately settled, he/she may file a petition to the 
court. 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights Question 17 It appears that Decree No. 206/PM on Goods Tr ading Business addresse s the requirements of 
firms that wish to be engaged in the business of importing and exporting, e.g., entering goods 
into Lao PDR on behalf of others.  The righ t to import and export, as required under the 
GATT, is distinct from the business of importing a nd exporting.  The right to import and export 
ensures the ability of a foreign exporter located outside Lao PDR to enter its product into the 
customs territory of Lao PDR, clear customs formalities, and access the same channels of 
distribution as are available to domestic firms.  In this light, please explain whether foreign 
firms are able to perform these activities in L ao PDR and where such rights are provided for in 
the laws of Lao PDR.  
Answer:
 
The same rights to import and export which is given to  Lao firms is also provided to all foreign firms, 
on condition that foreign firms are registered in La o PDR and they have a physical presence. The right 
to distribute is a matter distinct from the right to import and export. 
1. Import Regulation 
(a) Registration requirements for engaging in importing WT/ACC/LAO/11 
Page 10 
 
 
Question 18 
With regard to the "List of attached docume nts needed in an Application of Business 
Registration from the Ministry of Commerce", provided in Annex I, page 44, of WT/ACC/LAO/5, what forms are re quired to receive approval from the provincial trade office 
where the business is located?  Are different criteria  used by provincial trade officials to decide 
whether or not to grant approval?  What is the justification for having a provincial trade officials grant approval specifically for imports of vehicles, petroleum and luxury goods? 
Answer:
 
The list of attached documents needed in an A pplication of Business Registration whether at the 
ministry level or provincial level is the same.  
The criteria used by provincial industry and comme rce officials are the same as that used by the 
Ministry of Industry and Commerce.  
The business dealing with imports of vehicles, petroleum and luxury goods are required to be 
registered the Ministry of Industry and Commerce. By this, the Ministry needs the applicant to get 
verification from provincial industry and commerce offices.  
Question 19 Page 18 of WT/ACC/LAO/3 states "the fee for that registration is 0.1 per cent of capital for 
both wholly foreign-owned or a joint venture enterprise."  Are wholly domestically owned 
import-export enterprises subject to the same registration fee? 
Answer: 
 
There is no such fee of 0.1 per cent of regi stered capital collected by Industry and Commerce 
authorities. However, the Finance authorities pract iced so up until the beginning of 2005 when the 
PMO's Order No. 04/PM, dated 3 March 2005 (Article  4), repealed the collection of such fee from 
domestic and foreign enterprises, including th ose dealing with import and export.   
Question 20 
We welcome the information provided in Ques tion 16 of WT/ACC/LAO/5 in relation to 
business registration – in particular concernin g the Prime Minister's Decree No. 301 PM of 
October 2005 which stipulates that some activities will be closed to foreign investment.  Can Lao 
PDR be more specific about areas that will be cl osed to foreign investment which may relate to 
the importation and exportation of products? 
Answer:  
The Decree No. 301 PM of October 2005 provides the lis t of closed sectors for foreign investment.  
This list does not contain activities re lated to importation and exportation.  
Question 21  
What are the levels of fees that are charged for obtaining registration?  WT/ACC/LAO/11 
 Page 11 
 
 Answer:
 
At present fee collection is based on Presidential Decree No. 02/OPP, dated 27 November 2002, on 
fees and services charging which are based on the leve l of registered capital.  If it is a domestic 
investment, the fee will be in kip and foreign investment is US dollar as in the following Tables: 
1. The fees for domestic investment registration  
No. Enterprise's registered  capital Registration fees 
1 
2 
3 
4 5 
6 
7 8 Lower than  1,000,000 kip 
From 1,000,000 to 5,000,000 kip 
From 5,000,001 to 10,000,000 kip 
From 10,000,001 to 50,000,000 kip From 50,000,001 to 100,000,000 kip 
From 100,000,001 to 500,000,000 kip 
From 500,000,001 to 1,000,000,000 kip Higher than  1,000,000,000 kip   Nil 
 20,000 kip 
 50,000 kip 
 100,000 kip  300,000 kip 
 500,000 kip 
 1,000,000 kip  2,000,000 kip 
 
2. The fees for foreign investment registration  
No. Enterprise's registered  capital Registration fees 
1 
2 
3 4 From 100,000 to 300,000 US$ 
From 300,001 to 600,000 US$ 
From 600,001 to 1,000,000 US$ Higher than  1,000,000 US$ US$100 
US$200 
US$300 US$500 
 
Question 22 
Are there limitations on what an individual or fi rm can import that might relate to their sector 
of activity or their business licence? 
Answer:  
An individual or firm can import only if they hold a licence of import and shall only import the goods 
which are identified at the list in the business certificate. 
Question 23 
Can a Laos-based firm be engaged in importation of goods if it is not involved in the production 
or distribution of those goods in the domestic market? 
Answer:  
The Laos-based firm, which is not involved in th e production or distribution of the goods in the 
domestic market, can import goods but it has to follow the provisions of the Customs Law of 2005.   
Question 24  
We note in Annex I (registration procedures) that there are registration requirements for 
"import and export business" for "domestic ap plicants"?  There are also requirements for 
"Foreign Direct Investment for business registrat ion".  It is not clear under which requirement 
foreign investors can obtain registration fo r engaging in importation or exportation? WT/ACC/LAO/11 
Page 12 
 
 Answer:
 
The application form for foreign investor, in any sector, is identical.   
Question 25 
Under "domestic applicants for business registra tion" and "for import and export businesses" 
it notes that applications for importation of ve hicles, petroleum and luxury goods (or exports of 
wood and word products) required "approval from the provincial trade office where the 
business is located". 
(i) Can Lao PDR please outline the purpose of this approval at the provincial level, the 
process involved, what information needs to be provided, any fees that are charged and 
the criteria for such an approval? 
(ii) What does Lao PDR see as the relevant WTO justification? 
Answer:  
(i) Please see the answer to Question 18 on enterprise registration procedure. (ii) Please see the answer to the Question 21 on fee collection. 
(e) Quantitative import restrictions, including  prohibitions, quotas and licensing systems  
Question 26 
Please provide harmonized tariff numbers for all the products listed in Annex  II of 
WT/ACC/LAO/5, "List of Goods Subject to Prohibition from import and Export". 
Answer:
 
Lao PDR would like to inform that the Ministry of Industry and Commerce has revised the list of 
controlled goods for import and export unde r notification No. 1376/MOIC.DIMEX dated 
10 October 2006. 
This notification replaces Notification Nos. 284/MOC.FTD and 285/MOC.FTD  dated 17 March 2004, 
thus abolishing Annex II.  The current list compri ses only five groups of products under the category 
of prohibited imports (from 15 groups) while the num ber of product groups under export prohibition 
remains the same. 
This list is subjected to further revision with th e objective to reducing the number of products and 
assigning the HS codes.  
Question 27 
Please provide harmonized tariff numbers for all the products listed in Annex III of 
WT/ACC/LAO/5, "List of Goods Subject to Import and Export Licensing". 
Examples:  
- Telephone, fax and all types of communication equipment; 
- Raw materials and semi-pr oducts for production; 
- Agricultural products; - All types of snacks;  WT/ACC/LAO/11 
 Page 13 
 
 
- Medical supplies; and 
- Video cassette, sound cassette, CD, film and others. 
Answer:  
The list of products in Annex III of WT/ACC/LAO/5 is being revised with the objective of reducing 
the number of products subjected to import and export licensing and assigning the HS codes.  
Question 28  
We seek clarification as to certain goods iden tified as prohibited from importation into 
Lao PDR (WT/ACC/LAO/5, Annex II).  Please explain more fully the characteristics of products in the following prohibited categorie s:  "Materials affecting national culture and 
customs";  "Food, medicines and medical supplies as prohibited by relevant authorities";  
"Toys which affect attitudes, growth and safe ty of children and social morale"; "Literature 
materials, pornography, printing and other materials which are against Lao PDR".  It would also be useful to hear of examples of products from each of these categories. 
Answer:
 
Please see the response to Question 26.  As a resu lt, from the prohibited categories referenced in  
Question 28, only two remain as prohibited: 
- "Game machines that lead to bad attitudes, grow th and safety of children and social morale" 
for example video games that contain violence scene.  
- "Literature materials, pornography, printing a nd other materials which are against Lao PDR", 
for example, pornographic magazines, maga zines or newspaper that attack the Lao 
Government policies.  
Question 29 Annex II of WT/ACC/LAO/5 also explains that Lao PDR places "second-hand goods as 
prohibited by the Government" on the list of pr ohibited goods for importation.  Please explain 
the rationale for the prohibition on import s of second-hand goods "as prohibited by the 
Government", and the prohibition on imports of  logs and timber.  In responding to this 
question, we would like to draw Lao PDR's attent ion to the benefits of eliminating non-tariff 
barriers on remanufactured (and refurbished) products, as described in the document "Market Access for Non-Agricultural Products – Negotia ting NTBs Related to Remanufacturing and 
Refurbishing" (TN/MA/W/18/Add.11). 
Answer:
 
As a result of the revised notification No. 137 6/MOIC.DIMEX dated 10 October 2006, the item 
"second-hand goods as prohibited by the Governme nt" has been removed from the prohibited list. 
Logs and timber has been moved to the list of goo ds requiring approval from the Ministries concerned 
for importation.   
Question 30 
With regard to Question 27 of WT/ACC/LAO/5, ca n Lao PDR indicate when it expects to have 
its import licensing restrictions be WTO co nsistent?  Lao PDR noted it was evaluating 
restrictions for a limited number of strategic goods.  Can Lao PDR indicate what those goods are? WT/ACC/LAO/11 
Page 14 
 
 Answer:
 
The Lao Government is making every effort to st reamline and simplify import procedures to facilitate 
foreign trade.  Notably, the import quota, trade ba lancing policy and import indicative plan have been 
abolished.  In addition to response to Questi on 26, the MOIC is revising the import and export 
procedures with the objective of making it WTO consistent.  Research is foreseen under support 
funding with regard to strategic goods.   
Question 31 
We would appreciate if Lao PDR could add HS code numbers to the goods that are prohibited 
for importation and exportation. 
Answer:  
See the answer to Question 26. 
Question 32  
We would appreciate greater detail on what is covered by "second-hand goods as prohibited by 
the Government" in Lao PDR's list of prohibited imports and exports in Annex II to WT/ACC/LAO/5. 
What constitutes second-hand goods?  How is such a prohibition justified in WTO terms, and in 
a manner that ensures consistency with the treatment of like domestic product? 
Answer:
 
See the answer to Question 29.  
Question 33 
Can Lao PDR please provide greater detail on what goods are covered under the export and 
import prohibition on "Food, medicine and medical supplies as prohibited by relevant 
authorities"?  These terms are very broad and could make a considerable amount of normal 
trade subject to prohibition or inappropriate approvals/controls. 
(i) Could it provide HS codes for such goods, and can it provide an WTO justification for 
why such goods should be prohibited for importation? 
(ii) What criteria are used in the applicatio n of this policy by relevant authorities? 
Answer:  
As a result of Notification No. 1376/MOIC.DIMEX dated 10 October 2006, the item "food, medicine 
and medical supplies" has now been moved to go ods subjected to approval from the Ministries 
concerned.  The category of food has been broke n down into specific items for example meat and 
meat products, dairy products and cereals.     
Question 34 
Can Lao PDR please provide an explanation for the WTO justification for the banning of 
importation and exportation of all kinds of logs and other forestry products?  WT/ACC/LAO/11 
 Page 15 
 
 Answer:
 
See the answer to Question 29 on the importation of logs.  The banning of the exportation of logs and other products from natural forestry, Lao PDR believes 
that it is in compliance with GATT Article XX.   
Question 35 We welcome the fact that Lao PDR has taken st eps to liberalise its import regime, replacing 
trade balancing policy with an "indicative policy plan".  We would appreciate further detail on 
the nature of the "indicative policy plan" and its provisions concerning the rights of importation. 
Answer:
 
The order of the MOIC No. 0453/MOIC.DIMEX da ted 26 March 2007 abolished the indicative plan.   
With this abolishment importers are not required to  submit their indicative plan nor are they required 
to apply for an import licence except those impor ted goods as prescribed by the MOIC notification 
No. 1376/MOIC.DIMEX dated 10 October 2006.    
Question 36 
We note in Lao PDR's response to Question 31, th at in order to obtain an automatic import 
licence, an importer must submit an "indicative  plan" specifying the total value of goods to be 
imported during an annual period, and each im port transaction is deducted against that plan. 
(i) Is the purpose of requiring an "indicative plan" only for statistical/information 
purposes?   
(ii) Can Lao PDR confirm that the size of pl anned imports under automatic licensing is not 
a factor in determining approval of such a licence? 
(iii) Lao PDR indicates that automatic licensing is applicable to goods not subject to control 
or prohibited.  Does this mean that all goods in Lao PDR's HS schedule (aside from 
those defined as controlled or prohibited in Annex II and III) are all subject to 
automatic licensing?  Or is there a subset of particular goods which are subject to 
automatic licensing? 
(iv) Can Lao PDR spell out the process for ob taining an automatic licence, what documents 
are required, and if there is any basis for rej ecting an application?  Are there any fees 
charged, and what is the timeframe within which a licence will be granted? 
Answer:  
For (i) and (ii) please refer to the response to Question 35.  
Lao PDR is revising the import and export procedur es with the objective to bringing them into 
compliance with the WTO requirements on automatic and non-automatic import licensing.  
Question 37  
We are interested in Lao PDR providing great er information on the nature of "exceptional 
cases" where some prohibited imported projects can be imported subject to approval of the 
Prime Minister's office.  Can Lao PDR provide clear criteria governing such decisions and to 
what goods the apply? WT/ACC/LAO/11 
Page 16 
 
 Answer:
 
"Exceptional cases" for some prohibited goods that ar e allowed to be imported refer to, for example, 
the import of weapons and ammunition by the Ministry of Defence for military purposes.  Another example is the import of harmful chemicals for medical or scientific purposes as endorsed by the 
Ministry of Health.  
Question 38 
We note that there is a large list of goods that  are subject to non-automatic (controlled) 
importation, and which seem to involve approvals by agencies and the Ministry of Commerce.  
We would like to understand better how this system  works in relation to agricultural products. 
(i) An approval appears to be required by bo th the Department of  Agriculture and the 
Ministry of Health (Food and Drug Departme nt) for some agricultural products.  If the 
Department of Agriculture issues an "impor t permit", what is issued by the MOH? 
(ii) Why is there a need for two separate approvals in the case of such products?  What do 
these technical approvals seek to verify? (e.g. that the produce meets the standards of Lao PDR?) 
(iii) Are these approvals issued for each instan ce of importation or over a reasonable period 
of time? 
(iv) If these approvals are effectively associ ated with ensuring compliance with TBT and 
SPS measures (e.g. ensuring proper labelling, or…), what is the purpose of requiring 
that an import licence be issued? 
Answer:
 
Further to response to Questions 26, 35 and 36 Lao PD R is making every effort to review its import 
and export licensing procedures to facilitate trade and ensuring transparent rules governing foreign 
trade.  The ultimate objective is to bring the im port and export regime into compliance with WTO 
Agreements such as the Import Licensing Agre ement and SPS/TBT Agreements.  Technical 
assistance is currently being sought from in ternational partners in this regard.  
Question 39  
We note that Annex II lists following goods as being prohibited for import:  food medicines, 
medical supplies as prohibited by authoriti es, toys, second hand goods, literature materials, 
books magazines newspapers, f ilms record cassettes and discs th at are against the Government 
policy. 
- Could Lao PDR explain what is the reason for prohibiting imports of these products and 
why it is not possible to regulate their impo rts by another means than a ban, i.e. non-
automatic licensing?  
Answer:  
See answers to Questions 26, 28, 29 and 33. Question 40 We welcome the Lao PDR announcement that it is in the process of limiting import licensing 
restrictions to a limited number of strategic good s. Could Lao PDR indicate the timing for this 
revision and when the revised list of goods subj ect to import licensing would be available?  WT/ACC/LAO/11 
 Page 17 
 
 Answer:
 
See the answers to Questions 36 and 38. 
(f) Import licensing procedures 
Question 41 
We appreciate the information provided by the Lao PDR regarding its import licensing regime 
and have additional follow up questions on WT/ACC/LAO/5.  With regard to Lao PDR's answer to Question 31 on pages 12-13 of this document, it appears that all goods are subject to some type of import licensing.  Is that the case?  Could the representative of the Lao PDR 
clarify that all goods not subject to control or  prohibition require an automatic import licence, 
as stated in the second paragraph?  What is the rationale for requiri ng automatic import 
licenses for all products?  (Article 2.2(b) of the WTO Import Licensing Agreement states that "automatic import licenses may be maintained as  long as the circumstances which gave rise to 
its introduction prevail and as long as it s underlying administrative purposes cannot be 
achieved in a more appropriate way.") 
Answer:
 
See answer to Question 36. 
Question 42 
Please explain the approval process necessary fo r the importation quantity set out in an 
importer's "indicative plan" described in the answer to Question 31 (WT/ACC/LAO/5). 
Answer:  
See the answer to Question 35. 
Question 43 
If approval of the "indicative plan" is discretionary, please describe why Lao PDR believes it 
constitutes an automatic licence? 
Answer:  
See the answer to Question 35. 
Question 44 
Please describe the process by which an importer is able to amend or otherwise change the 
quantity of goods requested for importation under the indicative plan at a time other than the annual submission.  Is an importer permitted to increase the amount of good s to be imported at 
any time during the annual period? 
Answer:
 
See answer to Question 35. 
 
 WT/ACC/LAO/11 
Page 18 
 
 
Question 45 
Also, in regard to the application process for auto matic licenses, could the representative of the 
Lao PDR explain whether these procedures are outlined in any rules or guidance?  If so, could a 
copy be provided? 
Answer:  
See answer to Questions 36 and 38.  
Question 46 
Does Lao PDR have a process in place to make pub lications regarding import licensing easily 
accessible in a timely manner to a ll interested parties  (i.e. is the relevant information published 
in an official journal?)? 
Answer:  
Lao PDR make the notification available to the p ublic through all provincial industry and trade 
offices, newspapers, and the MOIC's website.  We also have information dissemination missions to 
provincial industry and trade offices after the ne w regulations have been promulgated.    
Question 47 
Does Lao PDR provide an opportunity for other countries to make comments in writing when 
new procedures/products relating to import licensing are introduced? 
Answer:  
In reviewing and improving import and export procedures Lao PDR has consulted and will continue 
to consult with line ministries and businesses within  the country. Any changes to this procedures will 
be duly notified to the Working Party or, when Lao PDR becomes a member of the WTO, to the 
Committee on Import Licensing in line with the Agreement on Import Licensing Procedures.     
Question 48 
How much time is allotted for submission of do cuments for an application for an import licence 
or a renewal of an import licence?  Are extensions available if needed? 
Answer:  
- There is no time limit for submission of documents needed to receive a import licence.  
- An extension is possible given reasoning  for extension request by importers.   
Question 49 
How much time does the Government of Lao PDR allow for processing import licensing 
applications? 
- For automatic import licensing – are app lications for licenses, when submitted in 
appropriate and complete form, approved immediately on receipt, to the extent administratively feasible, but within a maximum of 10 working days? 
- For non-automatic import licensing – is the period for processing applications no longer 
than 30 days when applications are received and considered on a first-come first-served 
basis?  WT/ACC/LAO/11 
 Page 19 
 
 Answer:
 
Lao PDR does not have specific provisions on existi ng regulations governing these timeframe as yet. 
We are reviewing our import and export regime with  the efforts to bringing them into compliance 
with WTO obligations. Technical assistance is current ly being sought from international partners in 
this regard.  
Question 50 
Can applications be denied for minor documentat ion errors?  Additionally, can applications be 
refused for minor variations in value, quantity or weight due to any minor differences consistent with normal commercial practices? 
Answer:
 
Applications with minor errors, e.g. typo errors , which do not change the substance or involve 
fraudulent intention, are acceptable to officials and subj ect to correction with the witness of officials.  
Question 51 
Does Lao PDR maintain an appeals process for rej ected import licensing applications?  Does 
this process include information on how to make  an appeal?  Under what circumstances will 
appeals be considered? 
Answer:  
Lao PDR does not have specific provisions governing this issue.  In practice, however an appeal 
against a decision on import licensing can be made to the higher organisation for consideration. 
(h) Customs valuation 
Question 52 
We welcome the fact that amended Customs Law (2005) was passed and would encourage 
Lao PDR to develop an Action Plan for its full implementation.  What are the particular challenges facing Lao PDR in relation to impl ementing this law and WTO commitments?  Can 
Lao PDR provide more detail on what technical a ssistance has been provided to date in this 
area, and a timeframe in which it believes it can meet specific commitments/aspects of the 
disciplines? 
Answer:
 
Please see the customs valuation Action Plan (WT/ACC/LAO/12). The passing by the National Assembly of the revised  Customs Law in May 2005 provided the catalyst 
for advancing the legislative programme to effect the implementation of all of the provisions of the 
Law.  The necessary Prime Minister's implementin g Decree is presently before the Government for 
approval as the first step in the legislative progra mme.  In accordance with the country's legislative 
structure the provisions of the Law, which incorpor ate the WTO commitments, must be elaborated in 
Ministry of Finance regulations and department al circulars for the guidance of officers.  
The International Monetary Fund (IMF) has provided considerable technical assistance in drafting the 
Law and continues to provide assistance in drafting the regulations and circulars.  Assistance was WT/ACC/LAO/11 
Page 20 
 
 provided during 2005 and 2006 and a Customs adviser is  at present working with Customs on a three 
month mission with the objective of completing the legislative programme by May 2007.   
Question 53 
We note the request of Lao PDR for a transition  period for achieving full compliance with the 
Customs Valuation Agreement and its requ est to receive TA in this area. 
We would be happy to know when Lao PDR would be able to submit an Action Plan for 
implementation of CVA. 
Answer:
 
Please see the customs valuation Action Plan (WT/ ACC/LAO/12).  The Action Plan provides for the 
full implementation of the CVA over the years 2008 to  2012, contingent on technical assistance.  The 
Customs Department will require extensive technical assistance in implementing its transition plan.  
(k) Application of internal taxes on imports 
Question 54 We welcome Lao PDR's recognition of WTO inconsis tencies in the application of some internal 
taxes – including excise and turnover taxes.  We  welcome that problems in relation to excise 
taxes have been addressed – can Lao PDR provide a simple table with applicable excise rates on 
products and their levels? 
Answer:
 
See the table with applicable excise rates on products in Annex 1.   
Question 55 
In relation to turnover tax, we welcome that this will be replaced by a VAT which will be 
applied in consistency with WTO rules.  We look forward to hearing more about its 
introduction and implementation.  Is there a deta iled plan or timeframe for its implementation? 
Answer:  
The VAT Law has been approved by the Nationa l Assembly in December 2006, and shall be 
implemented by second half of the year 2008 or at th e latest in January 2009.  Initially, the VAT will 
be applied to the business entities, whose tur nover exceeds 400,000,000 kip per annum.  Currently, 
there are about 4,500 to 5,000 entities meet the requi rement.  Those who are not required to comply 
with the VAT system will continue to pay turnov er tax as specified in the Tax Law No. 04/NA, dated 
19 February 2005. 
Question 56 
It is not fully clear when Lao PDR will effectivel y move from a "turnover tax" system to a VAT 
system with the adoption of the VAT Law? Could Lao PDR clarify this? 
Answer:  
See response to Question 55.   WT/ACC/LAO/11 
 Page 21 
 
 
Question 57 
Could Lao PDR explain what are the main feat ures of the "turnover tax" and what are the 
main differences with a VAT system? 
Answer:  
The main features of the turnover tax are as follows: 
- Turnover tax is an indirect tax collected at customs checkpoint and from wholesalers. 
- It has two rates of 5 per cent and 10 per cent. - There is a mechanism for refund, meaning that  the turnover tax paid earlier at the customs 
checkpoint and collected from purchase of th e raw materials will be deducted from the 
monthly turnover tax. 
The main features of the VAT are as follows: - VAT has a flat rate of 10 per cent for both foreign and domestic investments. 
- The VAT rate for export is 0 per cent. - There is a mechanism for VAT refund for export. - Strict accounting practices are implemented with the use of a 'receipt' for VAT as supporting 
document.  
Question 58 
What is the taxable base for the turnover tax? 
Answer:
 
The calculation of turnover tax as indicated in Article 14 of the Tax Law is as follow: 
- For imported products, the calculation will be th e declared value plus import duties and plus 
excise tax (if any); 
- For the products distributed in the country, the calculation will be the actual sale price without 
turnover tax; 
- For goods produced by contract, the calculation is  based on the actual value of the contract for 
production; 
- For services, the basis of calculation is based  on the total income from the services; and 
- For credit sales, the basis of calculation is ca lculated on the actual sales price paid by the 
customers.  
Question 59 
It seems from the answers provided by Lao PDR in 2004 that the turnover tax is not applied to 
imported goods when the rate of customs duty is zero. The result is a clear discrimination 
against imports from countries having no preferen tial treatment, which appears to be contrary 
to Article III-1 of the GATT.  
Could Lao PDR explain whether this discrimination  will be removed in the context of moving to 
a VAT system? WT/ACC/LAO/11 
Page 22 
 
 Answer:
 
Refer to the reply on Question 96 (WT/ACC/LA O/4), import duty on the goods is levied at 
zero per cent, turnover tax is still applied.  
(l) Rules of origin 
Question 60 
We take note that Lao PDR authorities consider to incorporate the provisions of Article 2 (h) 
and Paragraph 3 (d) of Annex II of the WTO Agreement on Rules of Origin into the revised Implementation Decree.  
Could Lao PDR indicate when th e Decree will come into force? 
Answer:
 
The Draft Implementing Decree was submitted to the Prime Minister Office.  When approved by the 
cabinet, the Decree will take effect 30 days  after the Prime Minister's signature.  
2. Export Regulation 
(d) Export licensing procedures Question 61 
We would appreciate further elaboration of how export licensing arrangements apply to the 
results of mining and forestry products.  What policy purpose is achieved through licensing, and 
how are the licenses applied?  Are they applied for the purposes of limiting exportation of such 
goods, or for other purposes?  It would be u seful for Lao PDR to outline reasons and WTO 
justification for such licenses in all cases in Annex III. 
Answer:
 
Mining and forestry products are exhausted na tural resources which requires environmental 
conservation, for example through export licensing.  Lao PDR will comply with WTO requirements.   
(g) Export performance requirements  
Question 62 
In response to Question 51 in WT/ACC/LAO/5, Lao PDR reserved its rights as a least developed 
country (LDC) to special and differential t reatment under Article 27 of the Agreement on 
Subsidies and Countervailing Measures ("SCM Ag reement").  Relevant laws referenced by 
Lao PDR indicate incentives that appear to be contingent on export performance within the 
meaning of Article 3.1(a) of the SCM Agreement:  the Law on the Promotion of Domestic Investment (10/NA) at Articles 9 and 11;  the Law on the Promotion of Foreign Investment 
(11/NA) at Articles 16 and 18;  and the Decree of the Prime Minister Regarding the 
Implementation of the Law on the Promotion of Foreign Investment (301/PM) at Article 15. 
Upon accession, each WTO Member has an ob ligation under Article 25 of the SCM Agreement 
to notify all of its subsidies, including prohibit ed subsidies that are contingent upon export or 
upon the use of domestic over imported goods.  We request that Lao PDR submit a subsidy 
notification.   WT/ACC/LAO/11 
 Page 23 
 
 Answer:
 
As an LDC, within its limited resources, the Lao Government will endeavour to fulfil the Article 25 
notification requirement of the SCM Agreement.  Technical assistance is currently being sought from 
international partners in this regard. 
3. Internal policies affecting foreign trade in goods (a) Industrial policy, including subsidy policies Question 63 With regard to the SCM Agreement, relevant la ws referenced by Lao PDR indicate incentives 
that appear to be contingent upon the use of domestic over imported goods within the meaning 
of Article 3.1(b) of the SCM Agreement:  the Law on the Promotion of Domestic Investment 
(10/NA) at Articles 9 and 11;  the Law on the Promotion of Foreign Investment (11/NA) at Article 18;  and the Decree of the Prime Minister Regarding the Implementation of the Law on the Promotion of Foreign Investment (301/PM) at Article 34. 
(i) We request that Lao PDR clearly identify the subsidies contingent on the use of 
domestic over imported goods in the manufactu ring process for which it is requesting a 
transition period and provide the Working Party with an Action Plan for the 
elimination of such subsidies within that period by a date certain. 
(ii) Upon accession, each WTO Member has an obligation under Article 25 of the SCM 
Agreement to notify all of its subsidies, including prohibited subsidies that are contingent upon export or upon the use of do mestic over imported goods.  Therefore, we 
seek a commitment by Lao PDR that it will comply with that obligation. 
Answer:
 
See response to Questions 9 and 62.  
Question 64 
We would welcome further detail on the nature of  proposed amendments to the current Mining 
Law.  What are the purposes of the amendments a nd in what areas of policy do they address? 
Answer:  
As of May 2007, the Ministry of Energy and Mi ning is in the process of soliciting inputs and 
comments from line ministries and the mining industry  with a view to incorporating into the draft 
revised Mining Law.  
The purpose of the amendments is to create more enab ling environment for investment in this area.   
 
Question 65 
We note that Annex II of the Implementing Decree  to the investment laws sets export thresholds 
(80 per cent) and local contents requirements (50 per cent) as criteria for receiving investment 
incentives. We would like to stress that LDCs are exempted from the prohibition of export 
subsidies under Article 27 ASCM (Annex VII), but not from the prohibition of local content 
subsidies. We therefore urge Lao PDR to eliminate any local content subsidies upon accession. WT/ACC/LAO/11 
Page 24 
 
 Answer:
 
Refer to answer to Question 63.  
(b) Technical regulations and standards 
Question 66 
We appreciate Lao PDR's efforts to consider and respond to our questions to date.  But there is 
still much work to be done before we are confid ent that Lao PDR will commit to the obligations 
established in the WTO TBT Agreement in exchange for the rights that WTO membership accords.  It would appear from the legislativ e Action Plan provided in WT/ACC/LAO/9, dated 
30 October 2006, that Lao PDR has prepared its ba sic draft Law on Standards.  At the same 
time, the Lao PDR asserts its need for technical assistance before it can further its work on the 
draft. 
Would the Lao PDR be willing to share a copy of it s draft Law on Standards as it stands now?  
We would be happy to work with your technica l assistance providers to review and comment on 
this draft law.  From our perspective, the T BT Agreement itself provides all language that Lao 
PDR needs in order to craft a law that would be consistent with the Agreement. 
Answer:
 
Please see the Action Plan on Implementing the TBT Agreement (WT/ACC/LAO/14).  The draft 
Standards Law will be presented to the Work ing Party before its third meeting.  
Question 67 
What will be the relationship of the new la w to the present Decree No. 85/PM dated 
2 November 1995, of the Prime Minister, on Management of Standards and Quality of Products 
and Goods?  Will the Decree be abolished?  Wh at specific provisions will Lao PDR include to 
"upgrade" the Decree "to ensure the compliance wi th provisions of the agreement concerning" 
(WT/ACC/LAO/6)? 
Answer:  
When the Draft Standards Law is approved by the National Assembly and subsequently its Decree 
approved by the Prime Minister, the Decree of the Prime Minister on Manage ment of the Standard 
and Quality of Goods and Products No. 85/PM da ted 2 November 1995 will be repealed.  The new 
Law and Decree will cover the specific provisions of the TBT Agreement.  
See also response to Question 66.   
Question 68 
In specific terms, how/through what vehicle/in what legal instrument will Lao PDR incorporate 
all the measures identified in WT/ACC/LAO/6?  Do the "domestic regulation(s)" await the passage of the new law?  Or, will/can domest ic development of standards and technical 
regulations take place separately?  How/throug h what means/by what process will the Lao PDR 
ensure that its technical regulations comply with the WTO TBT Agreement?  WT/ACC/LAO/11 
 Page 25 
 
 Answer:
 
The new Law on Standards, its Decree and regula tions will be the legal instrument which will 
incorporate on the measures identified in WT/ACC/LAO/6.  
The development of new standards as well as tech nical regulations follows ACCSQ principles as 
stipulated in the Lao Government's Master Plan on Standards and Conformity Assessment of 2000.  
The development of national standa rds and technical regulations are undertaken in consultation with 
stakeholders from both Government and private sect ors, and work is also being pursued through 
ACCSQ based on ISO/IEC guidelines in terms of standards development. 
The development of "domestic regulation(s)" does not have to await the passage of the new law.  
Even presently, these are being developed by spec ific technical committees which consist of 
representatives at technical level from both Government and private sectors.  The draft regulations are then sent to the National Committee on Management of Standards and Quality under the auspice of 
the Science Technology and Environment Agency (STEA).  
Question 69 
WT/ACC/LAO/6, 5(c), states that "Technical reg ulations are already subject to ongoing 
review".  What are the procedures for reviewing le gislation?  Is there a law or regulation that 
outlines the procedure?  If so, could a copy be  provided?  How will Lao PDR ensure that, upon 
accession, the regulations continue to undergo review in accordance with the TBT Agreement?  
Answer:
 
Please see the Action Plan on the implementing the TBT Agreement (WT/ACC/LAO/14).  Question 70 In WT/ACC/LAO/3, page 24, the Government states, "The Government of the Lao PDR is 
considering joining ISO".  What is the status of the Lao PDR's consideration?  In WT/ACC/LAO/6, the Lao PDR says that, "in practice," the Lao PDR refers to ISO/IEC guidance.  Will the Lao PDR commit, upon acces sion, to consider appropriate international 
standards, guides and recommendations as a ba sis for technical regulations and conformity 
assessment procedures as contained in Articles 2.4, 3.1, 5.4, 7.1? 
Answer:
 
Lao PDR became a member of the Internationa l Organization for Standardization (ISO) in 
January 2007.   Upon accession the Government will as provide d for in the TBT Agreement consider 
appropriate international standards, guidelines and recommendations as a basis for technical 
regulations and conformity assessment procedures.   Being a signatory of the ACCSQ (since 1998) 
helps in this effort. 
Question 71 
The explanation for 5(e) of WT/ACC/LAO/6 indicates that "Lao PDR has adopted 50 IEC 
standards as the National Standards of Electro nically and Electronic Products." What are the 
procedures for adopting international standards?   Is there a law or regulation that outlines the 
procedure? If so, could a copy be provided? WT/ACC/LAO/11 
Page 26 
 
 Answer:
 
Lao PDR became a signatory of IEC-APRC Affiliate  Country Programme (IEC-APRC-ACP) in 2002.  
As a signatory, the Government abides by the deci sion of the ACCSQ that IEC standards be adopted 
as national standards and those standards be notif ied to IEC-APRC-ACP.  The procedure to adopt 
international standards is as follows: 
(i) Examination by the Board on Management of Standards and Quality (under the auspices of 
STEA); and 
(ii) Approval of the standard by the Government. 
Presently, there is no specific regulation on procedur es for the adoption of international standards. 
Such a provision will be incorporated into the Im plementing Decree of the Law on Standards.   
Question 72 
The explanation for 5(f) of WT/ACC/LAO/6 indi cates that "Lao PDR does recognize the results 
of conformity assessment procedures conducted by relevant bodies in exporting countries." 
What are the procedures for recognition?  Wh at bodies qualify as relevant bodies?  Is there a 
law or regulation that outlines the procedu re?  If so, could a copy be provided? 
Answer:  
Presently, Lao PDR recognizes the results of confor mity assessment conducted by relevant bodies in 
exporting countries.  For steel bars, electrical a nd electronic equipment, cement and gasoline, the 
procedure requires the importer to inform STEA as the national standard body, and for food and 
drugs, to the Ministry of Health prior to applying for the import licence on the quality of the imported 
goods, which are listed for quality inspection.  The attestation on quality should be accompanied by a 
certificate from a testing laboratory which is accredit ed by the national standard body in the exporting 
country.  This procedure on steel bars, cement and gasoline is stipulated in the Regulation on Quality 
Inspection of Imported Goods No. 1036/STEA-PMO  dated 11 June 2002 while that for food and 
drugs in the Regulation on the Control on Produc tion, Exported-Imported Safe Food No. 586/MOH 
dated 12 May 2006. 
Question 73 
Commitments 5(d) and 6(c) of WT/ACC/LAO/6 deal with the use of international standards.  
The response provided highlights the ISO/IEC guid ance.  We would like to draw your attention 
to the work of the WTO TBT Committee in this  area, specifically the May 2002 Decision 
(G/TBT/1/Rev.8), which identifies the key principles for the development of international 
standards including transparency, openness,  impartiality and consensus, relevance and 
effectiveness, coherence and considera tion of constraints on developing countries' participation 
in standards development. 
In its footnote to WT/ACC/LAO/6, the Lao PDR "notes that several laws and regulations 
relevant to these checklists are currently in the process of being drafted, approved or 
promulgated as well as related Decrees…"  We ho pe that the Lao PDR will share these with us 
at the earliest possible moment so that we can try to work with your Government to ensure that 
these instruments are WTO/TBT Agreement consistent before they are finalized. 
Answer:  
The development of new standards as well as tech nical regulations follows ACCSQ principles as 
stipulated in the Lao Government's Master Plan on Standards and Conformity Assessment of 2000.   WT/ACC/LAO/11 
 Page 27 
 
 The development of national standa rds and technical regulations are undertaken in consultation with 
stakeholders from both Government and private sect ors, and work is also being pursued through 
ACCSQ based on ISO/IEC guidelines in terms of standards development.  Technical assistance is provided by ACCSQ and UNIDO experts.   
Question 74 For a number of the items in WT/ACC/LAO/6, it  indicates either that the commitment "will be 
incorporated into domestic regulations" or that  "the measure has not yet been incorporated 
into domestic regulation" – Commitments 4(c), 4(d), 4(e) 5(a), 5(b), 5(g), 6(a), 6(b), and 6(c).  Could the representative of Lao PDR indicate when these measures will be incorporated into 
domestic law?  Are they currently bein g addressed in the Law on Standards? 
Answer:
 
The draft law on standards as well as implementing Decrees/Regulations are being prepared in 
consultation with the private sector and Government  agencies, and technical assistance is provided by 
UNIDO and the EU.  Lao PDR is fully aware that  the new law should be consistent to the WTO 
requirements. All commitments 4(c), 4(d), 4(e), 5(a), 5(b), 5(g), 6(a), 6(b), and 6(c) stated in checklist 
WT/ACC/LAO/6 are to be incorporated into do mestic law and regulations by the year 2010.    
Question 75 
The Lao PDR also notes that it "is involved in technical assistance programs designed to 
improve its capacity in the areas of SPS and TBT".  Please elaborate on these programs.  We 
will need a complete understanding of what these programs are before we can comprehend the 
Lao PDR request for other or additional technical assistance. 
Answer:  
Lao PDR would like to express the appreciation for the willingness to provide technical assistance to 
Lao PDR.  The present Action Plan and the assistance provided by UNIDO and ACCSQ allow us to proceed in a satisfactory matter.  There is, howev er, no doubt that we will require further specific 
assistance and we will submit such requests at the appropriate time.  
Question 76 
We welcome Lao PDR's response in which it indicates that certain minerals and precious metals 
are included in a list of TBT-related reviews prior to importation.  Lao PDR indicates that this 
is for the purpose of "monitoring and preserv ing natural resources".  Can Lao PDR be more 
specific about the kinds of regulations/standards/t est that such products must pass in order for 
importation to take place?  How do import po licies contribute to "preserving precious natural 
resources"? 
Answer:
 
Based on Notification No. 1376/MOIC.DIMEX, prior to  the importation and exportation of gold bar 
and silver importer/exporter must get the approva l from the Bank of Lao PDR for the purpose of 
foreign reserve surveillance.   
For the importation and exportation of unprocessed  diamond the importer/exporter must get the 
approval from the Ministry of Industry and Co mmerce under the Kimberley Process Certificate 
Scheme to which Lao PDR is signatory. WT/ACC/LAO/11 
Page 28 
 
 
Question 77 
We appreciate the checklist on TBT, which indica tes that there is work underway on bringing 
Lao PDR's regime into WTO compliance. 
The checklist of Illustrative SPS and TBT Issues is a welcome first effort at identifying the work 
ahead for Lao PDR in meeting WTO rules in th ese areas.  We would encourage Lao PDR to 
expand on this checklist with a more detailed plan of action – including what domestic regulations/laws will be expected to be required,  by what time periods, and what resources 
currently exist to implement such plans.  
As an early step in the process, what timefram e is envisaged for implementation of Enquiry 
Points for both SPS and TBT Agreements? 
Answer:
 
Please see the Action Plan on SPS and TBT for bringi ng domestic laws and re gulations in line with 
SPS and TBT Agreements as well as technical a ssistance needed for compliance (WT/ACC/LAO/13 
and 14).  
The single Enquiry Point on SPS/TBT is to be created at the Department of Intellectual Property 
Standard and Metrology of the Science Technology and Environmen t Agency and will be operational 
upon the date of accession as indicated in WT/ACC/LAO/ 9.  Technical assistance is required for this 
purpose. 
Question 78 
We thank Lao PDR for submitting the checklist on  TBT issues. We take note of the transition 
period until 2010 indicated in the legislative Action Plan.  
Answer:  
Please see the Action Plan on implementing the TBT Agreement (WT/ACC/LAO/14).  
(c) Sanitary and phytosanitary measures 
Question 79 
We note that an enquiry point is being set up under the Prime Minister's Science, Technology, 
and Environment Agency (STEA) and that th e Ministry of Commerce (MOC) has been 
mandated to be responsible for notifications (WT/ACC/LAO/6).  Please provide the Working 
Party with information about how STEA and MO C intend to coordinate and collaborate to 
serve as a single contact point for information and notifications, respectively.  Please also 
provide the Working Party with a timeframe to est ablish and operate a single point of contact. 
Answer:  
To further facilitate effective communications on th ese matters, the Lao Government has decided to 
establish the enquiry point and notification point for SPS/TBT at the Department of Intellectual 
Property Standard and Metrology of the Sc ience Technology and Environment Agency. 
As indicated in WT/ACC/LAO/9, the expected timefr ame to establish and operate the notification and 
enquiry points is upon accession.   WT/ACC/LAO/11 
 Page 29 
 
 
Question 80 
We note that measures to protect human, animal or plant health "has not yet been incorporated 
into domestic regulation" (WT/ACC/LAO/6).  Pl ease provide the Working Party with plans and 
details to incorporate measures to prot ect human, animal or plant health.  
Answer:  
Please see Action Plan on implementing the SPS Agreement (WT/ACC/LAO/13).  
Question 81 
We note that regulations based on science "h as not yet been incorporated into domestic 
regulations" (WT/ACC/LAO/6).  Please provide th e Working Party with details and plans to 
incorporate science-based regulations. 
Answer:  
Please see Action Plan on implementing the SPS Agre ement (WT/ACC/LAO/13).  Further, it has to 
be noted that Lao PDR has promulgated a Nationa l Policy on Science and Technology toward the 
year 2010 as indicated in the resolution of the Government No. 09/PMO dated 27 November 2003.  
Question 82 
We note that equivalence, a Member's recognitio n of different measures to achieve the same 
level of protection, "has not yet been incorpor ated into domestic regulation" (WT/ACC/LAO/6).  
Please provide the Working Party with details and plans to incorporate equivalence measures 
into Lao PDR's regulatory system. 
Answer:  
Please see Action Plan on implementing the SPS Agreement (WT/ACC/LAO/13).  
Question 83 
We note that risk assessment "has not yet be en incorporated into domestic regulation" 
(WT/ACC/LAO/6).  Please provide the Working Party with details and plans to incorporate risk assessment into Lao PDR's regulatory system.  
Answer:
 
As an LDC, Lao PDR has not had necessary resour ces to conduct any risk assessment procedures.  
Lao PDR relies on international standards and u ses results of risk assessment carried out by 
international and regional organizati ons, and by other countries with similar conditions to that of Lao 
PDR instead.  
Question 84 
We note that non-discrimination measures "has not yet been incorporated into domestic 
regulation (WT/ACC/LAO/6).  Please provide the Working Party with details and plans to incorporate non-discrimination measures into Lao PDR's regulatory system.  
Answer:
 
Please see Action Plan on implementing the SPS Agreement (WT/ACC/LAO/13).  WT/ACC/LAO/11 
Page 30 
 
 
Question 85 
We note that control, inspection, and approval procedures "has not yet been incorporated into 
domestic regulation (WT/ACC/LAO/6).  Please provide the Working Party details and plans to incorporate control, inspection, and approval procedures into Lao PDR's regulatory system. 
Answer:
 
Please see Action Plan on implementing the SPS Agreement (WT/ACC/LAO/13).  
Question 86 
We note that a reasonable period of time for comment from Members and the public, and 
establishment of a process to take comments into  account without discrimination is required in 
law or administrative procedure (WT/ACC/LAO/6) .  Please provide the Working Party with a 
timeframe for implementing a process to take co mments from Members and the general public.   
Answer:  
Currently, there is no provision in Lao PDR dete rmining a specific timeframe for implementing a 
process to take comments from the general public in  the process of law or regulation drafting.  
However, in practice, some agencies involving w ith law or regulation making process which have an 
effect on the rights and interests of the general public seek comments from the public and the 
timeframe for this purpose depends on different laws and regulations.  
For the comments from Members, there is no law or regulation in Lao PDR that the draft 
law/regulation should be provided for comments from Members.  However, many laws or regulations 
prepared with the support of donors or internati onal organizations have taken into account comments 
from international experts, intern ational organizations and donors.  
Question 87 
We note that "in practice" Lao PDR follows to  the extent possible international standards, 
guidelines, and recommendations in prep aring SPS measures (WT/ACC/LAO/6).  Please 
explain "in practice" more fully to the Working Pa rty as it relates to following to the extent 
possible international standards, guidelines, and recommendations in preparing SPS measures. 
Answer:  
In practice, the formulation of SPS regulations on human health, animal and plant quarantine in Lao 
PDR is in line with standards and guidelines of ASEAN.  Where there is no such guidance, the 
standards and guidelines of OIE, IPPC, and Codex A limentarious will be used until the relevant Lao 
regulations have been established.  
Question 88 For a number of the items in the SPS Checklist (WT/ACC/LAO/6), it indicates that "this 
measure has not yet been incorporated into domest ic regulation" – Commitments 4, 5, 7, 8, 10, 
and 11. Could the representative of Lao PDR indi cate when these measures will be incorporated 
into domestic law?  Are they currently being a ddressed in any of the SPS legislation listed in the 
Preliminary Legislative Action Plan (WT/ACC/LAO/9)? 
  WT/ACC/LAO/11 
 Page 31 
 
 
Answer:  
Please see Action Plan on implementing the SPS Agreement (WT/ACC/LAO/13). 
Question 89 
The explanation for domestic provisions for Commitments 6 and 9 in WT/ACC/LAO/6 indicates 
that these obligations are followed in practice in the Lao PDR.  Are these commitments written 
into domestic legislation?  If so, could a copy be provided? 
Answer:  
The commitments 6 and 9 in WT/ACC/LAO/6 have yet to corporate into domestic legislation.  
However, please see the legislative Action Plan on  SPS and Lao PDR will include these commitments 
into the domestic legislation (WT/ACC/LAO/13).  
Question 90 
We welcome news that a draft veterinary law is  awaiting approval by the National Assembly.  
We would be interested in whether this has been approved or a time frame for its approval. 
Answer:  
The Veterinary Law has been drafted and comments  were sought from international experts.  The 
draft law has been accepted by th e Government Meeting and submitted to the National Assembly for 
consideration.  WTO conformity has been check ed and some amendments are necessary which 
requires technical assistance.  Passage is expected in 2009. 
Question 91 
We note that Regulation No. 894/MOAF has been replaced by Regulation No. 0886/MOAF and 
there is a procedure for obtaining import permit  authorisation for agricultural commodities.  
We have the following questions in relation to this new system. 
(i) When an importer make an application, is this in relation to the first time he or she 
seeks to import a specific product from a particular country (e.g. Beef from Australia), import a specific product from a particular supplier (e.g. Beef from Supplier X in 
Australia) or does it relate to ea ch and every single shipment? 
(ii) Is the purpose of this process essentially to  determine whether a particular commodity is 
safe to be imported from a particular country or supplier? 
(iii) Once it is determined that this product is  safe for entry from a particular country, can 
an importer purchase such product without fu rther permission on an ongoing basis? 
(iv) If the purpose is to determine the safety of  the imported product for sale in Laos, why is 
it necessary for the importer to obtain an im port permit and pay the related fee?  Can't 
such product be determined suitable fo r importation (and hence Customs is given 
approval) without the need to issue an actual import licence? 
(v) How are the fees calculated for obtaining such a licence? 
Answer:
 
Regulation No. 0886/MOAF is related to the use of pesticides in agriculture.  
(i) Yes, it relates to every single shipment whic h requires prior registration with the Department 
of Agriculture (DOA) and an import permit from the same Department - if imported to Vientiane Capital - and from th e respective Provincial Agriculture and Forestry Office, if 
imported to the provinces. WT/ACC/LAO/11 
Page 32 
 
 (ii) Yes. 
(iii) No, because an import permit is re quired from the DOA for each shipment. 
(iv) An import permit is required for each shipme nt as the registration of the pesticides is only 
done once with the DOA for the duration of two years.  Without an import permit, there is no 
way for the Department to monitor the actual importation. 
(v) 
A fee is necessary to cover the administrative costs.   It is based on the Ministerial Instruction 
of the Ministry of Finance No. 0341/MOF dated 21 February 2003, concerning the 
implementation of the Presidential Decree of  the Lao PDR on the registration and other 
services fees. 
Question 92 
We welcome the provision of an SPS checklist with greater information on aspects of the 
disciplines that have been met or need to be  met.  We note that a number of important 
principles of the SPS Agreement have not been refl ected into domestic law or regulation.  We 
would encourage Lao PDR to provide a detailed Action  Plan of when it expects it will be able to 
implement the provisions of the agreement, and a reas where it particularly requires assistance. 
Answer:  
Please see Action Plan on implementing the SPS Agreem ent.  Technical assistance is required, 
particularly to enhance institutional capacity and laboratory build-up.  
Question 93 
We thank Lao PDR for submitting the checklist on  SPS issues. We take note of the transition 
period until 2010 indicated in the legislative Action Plan. 
In its reply to Question 2 in WT/ACC/LAO/8, Lao PDR refers to the list of quarantine pests in 
Annex I to the document.  However, this Annex I is missing. Could Lao PDR submit the Annex  
containing the quarantine pests list to the Working Party? 
Answer:  
See the pest list in Annex 2 of this document.  Question 94 In WT/ACC/LAO/8, your answer to Question 2 in cludes the sentence "This (quarantine pests) 
list will be updated in the near future (see Annex I)".  Could Lao PDR please identify for us the Annex I that is being referred to here, and the document to which it is attached?  
Answer:
 
See response to Question 93.   Question 95 In WT/ACC/LAO/9, a transitional period is mentioned as being required to implement the 
SPS Agreement.  We would appreciate knowing what length of transitional period Lao PDR expects to set for this requirement.   WT/ACC/LAO/11 
 Page 33 
 
 Answer:
 
Please see Action Plan on implementing the SPS Agreement (WT/ACC/LAO/13). Any need for 
transition periods will be considered at a later stage. 
Question 96 
With reference again to document WT/ACC/LAO/9, could Lao PDR please provide further 
details of the legal and institutional framework th at may affect production, standards, sanitary 
and phytosanitary requirements. 
Answer:  
At the central level, the key Government ag encies deal with sanitary and phytosanitary  requirements 
and standards are the Department of Agriculture (p lant health) and the Department of Livestock and 
Fisheries (animal health) within the Ministry of Agriculture and Forestry (MAF).  The two 
departments: the Department of Food and Drug and Department of Hygiene and Disease Prevention 
of the Ministry of Health (MOH) involve with food safety under supervision of the National Codex 
Committee (NCC).  The NCC is chaired by Department  of Intellectual Property, Standardization and 
Metrology (DISM) of the Science Technology an d Environment Agency (STEA) and consists of 
representatives form the Ministry of Industry and Co mmerce, Agriculture and Forestry and Ministry 
of Health).  The DISM is the national standards development body and is primarily involved with 
standard-setting in the food safety, including chairi ng the National Codex Committee.  Its secretariat 
is in the Ministry of Health. 
The MAF is responsible for food safety control for all fresh (unprocessed) food, starting from the 
production activities from farm and post-harvest practi ces to the retail markets.  The Department of 
Agriculture (DOA) and Department of Livestock and Fisheries (DOLF) are responsible for plant 
health activities and animals and unprocessed animal  products, respectively.  As mentioned earlier 
there are two departments of the MOH involved with SPS matters.  The Department of Food and 
Drug and Department of Hygiene and Disease Preven tion are responsible for the control of processed 
food and water, including hygiene in food and bo ttled water processing factories and restaurants. 
The implementation of food safety and agricultural h ealth policies are carried out by provincial and 
local authorities in 16 provinces and Vientiane Capital.  
Plant health:   Provincial Agricultural and Forestry Offi ces issue the Phytosanitory Certificates and 
import permits for land border posts under supervision of National Pl ant Protection Organization (the 
Department of Agriculture).  
Animal Heath :  In addition, the National Animal Health Center (NAHC) of DOLF is responsible for 
animal health activities in the country and related border controls: animals (including fish) health 
protection and quarantine, safety of unprocessed livest ock product, safety and control of animal feed 
and veterinary drugs, import of breeding stock, an imal movement control veterinary certification, 
relevant laboratory tests.  The NAHC has superv isory responsibility for central and provincial disease 
diagnostic laboratories and international border ch eck points and it also has technical supervisory 
responsibility for all abattoir and slaughter slab  inspections in the country although operating 
responsibility remains at the provincial and district levels.  
Food Safety:   The institutional framework for Food Safety is as follows: 
I. Food and Drug Administration (FDA) has an advisory board for food safety issues consisting 
of 9 members from 6 ministries: WT/ACC/LAO/11 
Page 34 
 
  1. Ministry of Health, Chairman (Minister);  2. Science, Technology and Environment Agency;  3. Ministry of Agriculture and Forestry;  4. Ministry of Industry and Commerce; 
 5. Ministry of Finance; and 
 6. Ministry of Public Security. 
Permanent bureau is located in Food and Drug Depa rtment (FDD) under the Minister of the Ministry 
of Health. 
II. Food and Drug Department (FDD), MOH is  Food Safety Authority of Lao PDR and 
responsible for: 
 - Developing food safety legislation and standards (Food Law, May 2005); 
 - Issuing permit for imported food, certificates of quality assurance for exported food;  - Registration of food premises and products;  - Inspection and enforcement;  - Food safety promotion (Training, workshops..); 
 - Analyzing food samples and monitoring food contaminants (by Food and Drug 
Quality Control Center: FDQCC); 
 - Providing food safety information to the public; and  - FDD acts as the Codex Contact point. 
III. Department of Hygiene and Disease Prevention is  responsible for the control of the markets, 
food services such street vendors and restaura nts.  The Department works with National 
Centre for Laboratories and Epidemiology for monitoring and surveillance the diseases. 
Standardization:
  The DISM under the STEA is in charge of standardization, testing and quality 
activities which include the formulation of na tional standards and ma intenance and national 
metrology standards.  
Legislation:   The legislation governing SPS and TBT has already been provided to the WTO 
Secretariat. 
(d) Trade-related investment measures 
Question 97 In response to Question 56 of WT/ACC/LAO/5, L ao PDR addressed the issue of local-content 
requirements largely with regard to the tr ansition period under the TRIMs Agreement. 
(i) In order to utilize such transitions to main tain its TRIMs, Lao PDR must identify them 
for notification. 
(ii) Lao PDR also should indicate how long within the allowable period of seven years it 
believes it must maintain these measures. 
(iii) We seek a commitment for the WP report that Lao PDR will eliminate all measures 
inconsistent with the TRIMs Agreement by a da te certain, e.g., no later than seven years 
from accession to the WTO, consistent with the provisions of the TRIMs Agreement, the Declaration on LDC Accessions, and the Hong Kong Ministerial Declaration.  WT/ACC/LAO/11 
 Page 35 
 
 Answer:
 
The Lao Government takes note, with thanks, of  Members's understanding to allow Lao PDR, as a 
landlocked least developed country, to avail itsel f of the flexibilities provided for all LDCs in 
paragraph 36 of the Hong Kong, China Ministerial Declaration and paragraph 84 of its Annex F. 
Lao PDR also takes note of the request to notify the TRIMs measures.  
Lao PDR would like to avail itself of the transition period for phasing out the TRIMs incompatible 
measures by 2020 as allowed for in the Hong Kong, China Ministerial Declaration.   
Question 98 
With regard to Article 34 and the footnote to Annex 2 of the Decree of the Prime Minister 
Regarding the Implementation of the Law on the Promotion of Foreign Investment 
(No. 301/PM), excerpted below, please explain ho w these requirements, if maintained, would not 
violate Lao PDR's TRIMs obligations. 
- Page 16 of 61: 
 Article 34.  Reduction and Exemption privilege on Duty, Use Tax and Business 
Turnover Tax regarding the Importation of Raw Materials, Finished Products and 
Semi-finished Products. 
34.1  The importation of raw materials which cannot be produced within the country by 
a certificate of the relevant sector will be entitled to the importation authorization by exemption of imported duty, use tax and bus iness turnover tax.  For any raw materials 
which can be produced in the country shall use such materials in the country, unless 
they are such raw materials that the dom estic producers can not supply its quantity and 
quality, the CPMI will consider for approval based on case by case; 
34.2  The importation of semi-finished products that are produced in the country but 
that are not sufficient or do not meet th e standard for the processing, assembly or 
production of goods for domestic distribution will receive the authorization to pay duty 
and business turnover tax for importation with a reduction to half of the normal tariff 
for a maximum period of 5 years from the date of receiving the privilege to import, 
based on the special characteristic of each  enterprise and on the basis of the relevant 
sector.  After the expiry of 5 years, if th e foreign investment enterprise still has the 
necessity to continue to import it sha ll adhere to the Custom Law and Tax Law; 
34.3  The importation of accessories that a re produced in domestically but those 
accessories produced domestically  are not sufficient or do not meet the standard for 
processing, assembly, or production for good s for domestic distribution by having a 
certification from the relevant sector will rec eive the authorization to pay imported 
duty, use tax as accessories according to th e rate prescribed in ASEAN harmonized 
tariff nomenclature; 
34.4  The importation of raw materials, semi-finished products and accessories for 
assembly, processing or production to be pr oducts for exportation will receive the duty, 
use tax and business turnover tax exemption at the time of importation and exportation. 
- Page 46 of 61  Foreign investment enterprise to receive inv estment incentive shall satisfy at least 3 of WT/ACC/LAO/11 
Page 36 
 
 
the following additional conditions: 
1. must use local labour at least 90 per cent of total labour during the term of 
investment; 
2. must use local raw material more than  50 per cent of total production cost; 
3. must use model technology; 
4. must preserve the environment ac cording to the Law on Environmental 
Protection; 
5. must be promoted activities to other domestic production; and 6. must have production activities for expo rt at least 80 per cent of total production 
cost. 
Answer:
 
To the extent that the aforementioned measures fall within the illustrative list of the TRIMs 
Agreement (of which not all of the above are), the Lao Government reiterates its request for transition 
period as provided for all LDCs in paragraph 36 of  the Ministerial Declaration in Hong Kong, China 
and refers in paragr aph 84 of Annex F. 
(e) State-trading practices  
Question 99 We recall that in its Foreign Trade Memorandum (WT/ACC/LAO/3), Lao PDR expressed its 
preliminary view that it did "not have State trading enterprises in the sense of Article XVII of the GATT 1994 and working definition of Understa nding on the Interpretation of Article XVII 
of the GATT 1994."  The obligations in Article XVII apply equally to enterprises owned or 
controlled by the State, as well as enterprises to which the State grants special or exclusive privileges.  Is it your view that there are no such enterprises in Lao PDR?  If any such 
enterprises do exist in Lao PDR, it would be u seful to know their principal sectors of operation 
and the manner in which they make commercial  decisions, e.g., with respect to sales and 
purchases. 
Answer:
 
In Lao PDR, the State-owned enterprises involved wi th foreign trade are registered with Industry and 
Commerce authorities.  Currently, there are 16 St ate-owned enterprises dealing with imports and 
exports.  State-owned and private enterprises of im ports and exports shall be  established and operated 
in the same obligations, regulations and laws of Lao PDR.  The board of directors of such enterprises 
has the right to make their own decisions on th eir business operation such as pricing, costing and 
marketing, without interference of the Government gi ven the fact that they comply with the laws and 
regulations of Lao PDR. 
(g) Free economic zones 
Question 100 
In response to Question 67, Lao PDR identified a set  of legislation governing the operations at 
two border trade zones and one special economic zo ne.  Article 15 of both the Decree on Border 
Trade Zone at Boten (162/PM) and the Decree  on Dansavanh Village Border Trade Zone 
(25/PM) provides that payment of profit tax following the grace period will be governed by separate legislation "based on the conditions and situations in each period."  WT/ACC/LAO/11 
 Page 37 
 
 
- If any separate legislation providing additional profit tax incentives at the zone has been 
drafted, could Lao PDR provide a copy for review? 
- If not, what types of conditions or situations does Lao PDR or the relevant zone 
authority envision as providing a basis for additional incentives under the separate 
regulation? 
Answer:  
- At present, there is no separate legislation th at provides for additional profit tax incentives at 
the zones. 
- The Lao PDR Government has yet to deve lop the basis for additional incentives.   
Question 101 Article 17 of both the Decree on Border Trade Zone at Boten (No. 162/PM) and the Decree on 
Dansavanh Village Border Trade Zone (No. 25/PM) provides that goods produced in the zone may enter the domestic market subject to import duty at the rate of 10 per cent of the normal 
rate for the type of good, but goods produced with more than 20 per cent local content are 
subject to a concession rate of import duty "e qual to the rate of such components used." 
- Could Lao PDR explain the meaning of th e phrase "equal to the rate of such 
components used"? 
- Please explain how such a concession rate would compare with the rate imposed on 
goods with less than 20 per cent local content. 
Answer:
 
The phrase "equal to the rate of such components us ed" means that the reduction of import duty to be 
paid will be equivalent to the pe rcentage of local content in the product.  For example, a product 
which embodies 30 per cent local content with the nominal import duty rate of 50 per cent will get a 
duty reduction of 30 per cent of 50 per cent (or = 15 per cent reduction).  As a result, the import duty 
to be paid is 35 per cent.  
However, the threshold for the use of local content is  20 per cent.  Any use of local content below this 
threshold will be subject to a flat rate of 10 per cent reduction of the nominal import duty.   
Question 102 
Article 6.4 of the Decree of the Prime Minister on Savan-Seno Special Economic Zone (148/PM) 
indicates that preferential duty and tax treatment provided to investors in the zone will be determined under separate legislation. 
- If any separate legislation providing duty and tax incentives at the zone have been 
drafted, could Lao PDR provide a copy for review? 
- Other than location in the zone, what other eligibility criteria would Lao PDR or the 
zone authority use in providing these incentives? 
Answer:
 
- At present, there is no separate legislation that provides for duty and tax incentives at the 
zones. 
- The Lao Government has yet to develop the basis for other eligibility criteria for these 
incentives.   WT/ACC/LAO/11 
Page 38 
 
 
Question 103 
Can Lao PDR confirm that goods produced in the SEZs and FEZs, when they enter the 
domestic market of Laos, are subject to normal  import duties collected from imported goods? 
If this is not the case, can Lao PDR explain how the goods entering the domestic market are 
treated as regards import duties?  
Answer:  
Yes, goods produced in the SEZs and FEZs are subjected to normal import duties collected from 
imported goods.  However, as explai ned in response to Question 101, th e percentage of local content 
will determine the actual duty to be levied on the product.    
4. Policies affecting foreign trade in agricultural products Question 104 DS:1 - Green Box:  In relation to Domestic F ood Aid programs, we would note that countries do 
not need to schedule any programs that are f unded by foreign aid organizations in their 
agricultural tables.  Can Lao PDR confirm that 2(a) contains only Lao Government expenses 
associated with any foreign assistance? 
Answer:
 
There are no purchases of food aid by the Government .  The domestic food aid expenditures recorded 
in Supporting Table DS: 1, are expenses incurred by the Government to facilitate the storage, 
transport and distribution of donated food and seed to  those who need it.  The food and seed being 
distributed is provided by international foreign ai d agencies or the foreign aid agencies of other 
countries.  This aid has been provided primarily to alleviate the effects of natural disasters. 
Question 105 
In relation to domestic food aid programs, ca n Lao PDR confirm the clearly-defined eligibility 
criteria related to nutritional objectives underpinni ng its food aid programs, and at what prices 
purchases by the Government are made? 
Answer:  
The eligibility criteria is based on the status of the f ood aid recipients to ensure that they obtain the 
minimum daily nutritional requirements.   
See also response to Question 104.  
Question 106 
We note a preference for support measures to be scheduled in local currency units as it provides 
a more accurate measure of actu al support paid to farmers. 
Answer:  
The checklist WT/ACC/4 does not appear to require th e use of local currency.  Since the kip is a non-
convertible currency, it was considered desirable to provide this information using a convertible  WT/ACC/LAO/11 
 Page 39 
 
 currency actually used for international trade.  The exchange rates used for each of the base years are 
provided in footnote 2 for Supporting Table DS: 1.  
Question 107 
In DS:2 (Article 6.2 provisions), we woul d welcome more information on the nature of 
investment and operating credit provided below ma rket interest rates.  Can Lao PDR provide a 
table on how such support was calculated?  
Answer:
 
The investment and operating credit support was calcu lated from the difference between the interest 
rates offered by the commercial banks and the inter est rates provided by the Agriculture Promotion 
Bank multiplied by the total amount of loans in the base period.  
Question 108 
ES:1 - Export Subsidies: We note that Lao PDR has not applied any expo rt subsidies in the 2001-03 base period selected.  
Can it confirm that it has not used any form  of subsidy contingent upon the export of 
agricultural product in recent years? 
Answer:
 
In the 2001-03 base period, Lao PDR has not intr oduced any such measures which would provide a 
subsidy contingent on agricultu ral products being exported. 
Question 109 
Supporting Table DS: 9 in document WT/ACC/S PEC/LAO/1 shows Non-Product-Specific AMS 
amounting to nearly US$12 million in each of the years 2002 and 2003, which is listed as 
de minimis  (in Table DS:4).  Would Lao PDR kindly provide us with the value of "total 
production" and "ratio of domestic suppo rt to total production" on which this de minimis 
description is based. 
Answer:  
Footnote 4 for Supporting Table DS: 5 provides the total value of agricultural production for each of 
the base years.  Using these figures, the non-product-specific AMS amounted to 1.4 per cent and 1.5 per cent of the total value of agricultural pr oduction in 2002 and 2003, respectively, well below 
the 10 per cent de minimis  level. 
Question 110 
We note in your Agriculture Ma rket Access Offer, the following  HS lines are missing:  050100, 
290545, 293911, 330210, 382311, 382312, 382313, 382319, 382370, 382460.  Please provide offers 
for those products.  Also, please note that fish  and fish products are negotiated under the Non – 
Agriculture Market Access Group. 
Answer:
 
All these lines are listed in Lao PDR's initial goods offer, under the NAMA spreadsheet, except 
050100 under Agriculture spreadsheet.  WT/ACC/LAO/11 
Page 40 
 
 
Question 111 
In reference to Table DS:9 (WT/ACC/SPEC/LAO/1), it is recommended that Lao PDR remove 
the reference to State-owned enterprises from th e support Tables.  This information is outside 
the base years (2001-2003) and thus irrelevant.  It should be transferred to the Working Party 
report. 
Answer:  
This information was provided for transparen cy purposes even though no support was provided 
during the base period.  Lao PDR has no objection to  this information being moved to the Working 
Party report. 
Question 112 In reference to Table DS:5, please identify the da ta set used to determine the external reference 
price for rice. 
Answer:
 
The external reference price for rice was obtained from the data set on World Price for Rice from the 
University of Arkansas, USA.  
Question 113 We note that Lao PDR did not provide support information in domestic currency, as called for 
in WT/ACC/4.  Unless a country's currency is officially pegged to another currency (e.g., 
dollars, SDRs) the information in the support Tabl es should be in the domestic currency.  Please 
correct in future submissions. 
Answer:
 
See response to Question 106. 
Question 114 
In reference to Table DS:1, the Government ex penses included for distributing food aid appears 
to be an administrative expense of the Governme nt rather than a program to provide food aid.  
Please provide more detail on what type of expenses are incurred. 
Answer:  
See response to Question 104.  
Question 115 
We note that in Decree No. 870/MOC of 10 Se ptember 1996 a number of agricultural products 
are banned from import or export to Lao PDR.   Specifically identified as banned goods for 
import include:  all animal parts (including bones, hides, feet, wings and heads) and all 
agricultural goods which are produced locally.  In  addition, the same Decree identifies all food 
products as State Controlled Special Imports.  Pl ease further explain the purpose of this Decree, 
how it is enforced and whether it is still in existence.  WT/ACC/LAO/11 
 Page 41 
 
 Answer:
 
The above-mentioned Decree was abolished.  See also response to Question 26.  
Question 116 
We note that during the exchange of questio ns and answers at the 30 November 2006 Working 
Party meeting, Lao PDR responded that they have no export subsidies, but that they reserve the 
right to apply subsidies as long as they are an  LDC.  We encourage Lao PDR to demonstrate a 
willingness to adhere to maintaining a standstill agreement.  
Answer:  
Members in the Hong Kong Ministerial Declaration recognized the need for special policy flexibility 
for LDCs owing to their severe economic and deve lopment needs.  While Lao PDR does not envisage 
such measures at this stage, the underlying developmen t rationale of the Ministers' decision applies to 
all LDCs and is welcomed by Lao PDR.  
Question 117 
We note that in Decree No. 870/MOC 19/09/1996 a number of agricultural products are banned 
from import or export to Laos.  These goods incl ude all animal parts (including bones, hides, 
feet, wings and heads) and all agricultural good s produced locally. Fur thermore, the Decree 
states that all food products are State Controlled Special Imports.  We would appreciate further information on the justification of this Decree, and how it works. 
Answer:
 
See response to Questions 26 and 115. V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 1. General Question 118 We thank Lao PDR for submitting information on  implementing of the TRIPS Agreement.  We 
take note of the transition period until 2012 indicated in the legislative Action Plan. 
Answer:
 
Lao PDR is a signatory to the convention establis hing the World Intellectual Property Organization 
(WIPO) since 1995, and became the member of the Paris Convention for the Protection of Industrial 
Property in 1998. In 2006, Lao PDR joined the Inte rnational Patent Cooperation Treaty (PCT), and is 
now studying and preparing to join  other conventions and treaties. 
With an aim to ensure the implementation of provis ions stipulated in the Paris Convention, Lao PDR 
has promulgated some Decrees and Regulations such as: 
- Decree on Trademarks No. 06/PM of 18 January  1995, and Regulation on the Registration of 
Trademarks No. 466/STEA-PMO dated 7 March 2002; and 
- Decree No. 01/PM dated 17 January 2002 on th e protection of Patents, Petty Patents (Utility 
Models) and Industrial Designs, and Regulation on the Implementation of the Patents Decree 
No. 322/STEA-PMO dated 18 February 2003. WT/ACC/LAO/11 
Page 42 
 
 The Lao Government wishes to utilize the transitional period granted for LDCs to build capacity of its 
officials involved in the implementation of intellectual property rights through human resource 
development programmes, and institu tional reform and development.  For this, the Lao Government 
requests appropriate and ad equate technical support. 
Question 119 Comments on draft Law on Intellectual Propert y.  We recommend that Lao PDR separate the 
IP law into completely separate sections according to the intellectual property at issue, or into 
separate documents.  Each category of intell ectual property covered in the TRIPS Agreement 
receives different treatment and involves different ex clusive rights.  Combining copyrights with 
trademarks with patents, etc. would lead to in accuracies that would be inconsistent with the 
TRIPS obligations. 
Answer:
 
The draft Law on Intellectual Property only reflects the main principles of intellectual property rights.  
The details will be incorporated  into separate Decrees and Regulations for each field of IP.  
2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights 
(a) Copyright and related rights Question 120 The draft "Law on Intellectual Property" appea rs to fall short of full compliance with the 
TRIPS/Berne requirements for copyright protection.  What plans does the Lao PDR have to 
bring the law into full compliance with the TRIPS Agreement? 
Answer:
 
For copyrights and related rights, the details will be stipulated in specific Decrees and Regulations to 
ensure the compliance with the Berne Convention as indicated in model law provided by the World 
Intellectual Property Organization (WIPO).  
Question 121 We would like to highlight some specific area s where the draft law fails to implement the 
TRIPS/Berne requirements: 
(i) Article 4 requires registration of the intellectual property to receive protection.  The 
Berne Convention, which was incorporated into the TRIPS Agreement, requires that 
protection be granted to copyrights of nati onals of countries that are signatories of 
Berne and cannot require the right holder to reg ister the right.  Please explain how this 
provision will be brought into conformity with the TRIPS Agreement. 
(ii) There are exceptions in Article 6 that appear to be too broad and appear to exclude 
from protection works that should be protect ed under TRIPS.  Could you please explain 
what is meant by drawing plans, regulations for doing business, performing that relates 
to psychology or playing games, and imitations? 
(iii) Article 14 does not include "scientific"  works which must be  included for TRIPS 
compliance. 
(iv) Could you explain what is meant by the st atement "The protection is limited to solely 
the creation not the content, quality and purpose of its creation" in Article 15?  WT/ACC/LAO/11 
 Page 43 
 
 
(v) Article 16 of the draft law covers "the rights of performers, owners of products in 
relation to the phonograms and pictures and the sound and picture broadcasting organizations."  We believe that "owners of  products in relation to the phonograms" 
means phonogram producers.  Is that correct?  Why are the words "and pictures" 
included here if audiovisual works, photos and drawings are covered by copyright under 
Article 15?  What about pictures is not covered by Article 15? 
(vi) The Draft Law on IP does not appear to set forth the copyright term for audio visual 
works and sound recordings.  What section sets forth the term of copyright protection 
for those types of works? 
Answer:
 
(i) As stipulated in Article 4 of the draft law re lating to the registration of intellectual property to 
receive protection of industrial property, the procedures of protection of copyrights and related rights will be incorporated in specific Decrees and Regulations. 
(ii) Article 6 of the draft law contains provis ions on Intellectual property that are excluded from 
protection below: 
 "Under this law no protection shall extent to sci entific theories, mathematical methods, charts, 
schemes, rules or methods for doing business, c ognitive learning activities or games, methods 
for treatment of the human and animals, ideas, legislative procedures, concepts, principles, 
discovery, official documents, collection of mere  data from public medias, copy or imitation, 
and acts which are contrary to the public order or the national cultural morality."  
 There appears to be a confusion of the draft law with respect to sub-question (ii).  
(iii) Lao PDR takes note with thanks, and th is will be reflected in the draft law.  
(iv) Article 15 means the protection is limited to the creation or works as visibly seen or heard 
(audiovisual); for example, a sculpture can be protected without its meaning or expression, or as for a song only its text or melody could be protected but not its popularity.  
(v) Article 16 of the draft law contains provisions on "related rights": 
 "For the purposes of this law, "related right s" means the rights of performers, producers of 
phonograms and broadcasting organi zations to be protected."  
 There seems to be a confusion of the terms "t he rights of performers, owners of products in 
relation to the phonograms and pictures and the sound and picture broadcasting 
organizations".   However, it is true that the owners of  products in relation to the phonograms" 
means phonogram producers, and  the words "and pi ctures" are also covered by Article 15, 
which are photographic works as stated in paragraph (h) of the draft law.  
(vi) The copyright term for audio visual works a nd sound recordings will be incorporated in the 
implementing Decrees or Regulations of the draft law.  
(b) Trademarks, including service marks 
Question 122 
In responding to Question 76, WT/ACC/LAO/5, regarding the 1995 Decree Article 7 provision 
that a trademark application shall include "a list of the goods and services with the description 
of the characteristic and quality", Lao PDR provided the following example:  "For example, the WT/ACC/LAO/11 
Page 44 
 
 
trademark "CASIO" is intended for use in relat ion to certain scientific, photographic and 
cinematographic apparatus and instruments in Cl ass 9".  Based on this example, how does "a 
list of the goods and services with the description of the characteristic and quality" differ from "a list of the goods and services"? 
Answer:
 
In addition to the response to Question 76 of WT /ACC/LAO/5, the terminology "the description of 
characteristic and quality" differs completely from  "a list of the goods and services".  The list of 
goods and services means the latest version of the Nice Agreement on International Classification of 
Goods and Services.  The description of characteris tic and quality is only additional information 
requested by Registration Unit to know about the natu re/characteristics as well  as the quality of such 
goods or services, which are applied for protection.   
Question 123 
In responding to Question 77, WT/ACC/LAO/5, regarding the 1995 Decree Article 7 provision 
referring to the "assign[ment of] the right to u se the trademark", Lao PDR stated that the word 
"assignment" "does mean the transfer or licensing of rights".  As "assignment" generally refers 
to a transfer of rights, rather than a licensing of rights, shouldn't the phrase read, "does mean 
the transfer of rights"?  Under what circumstanc es would permission of the assignor/transferor 
be required or preferred, as the assignee/transferee would become the owner of the mark?  
Answer:  
In addition to the response to Question 77 of WT/ACC/LAO/5, the terminology of "assignment" 
means the transfer of rights; it does not mean th at the assignee/transferee becomes automatically the 
owner of the mark. The limitation of using the assignor's rights depends on the agreement between 
two parties. 
Question 124 
In responding to Question 77, WT/ACC/LAO/5, regarding the 1995 Decree Article 7 provision 
that "[i]n the case of partial assignments, the agreement shall provide for the right of the owner 
of trademark to verify the quality of goods and services", Lao PDR responded that "[t]he 
transfer of rights between the right owner and the assignee is voluntary based on consensual agreement between the two parties".  What is a "partial assignment"?  Under what circumstances would the trademark owner/assignor be able to exercise quality and control over 
the use of a mark that has been assigned? 
Answer:
 
In addition to the response to Question 77 of WT /ACC/LAO/5, the terminology "partial assignment" 
means the transfer of limited rights to the use of a mark given the fact that the trademark owner could 
verify the quality of goods or services which use the mark that has been assigned.  The verification of 
quality could be done by different methods; for in stance, the result of quality testing of goods or 
services, based on standards, can be used in order to avoid the dilution of trademark or services mark.    
Question 125 
In responding to Question 79, WT/ACC/LAO/5, regarding the 1995 Decree Article 10 provision 
referring to "applications for the registration of identical or confusingly similar trademarks of 
the same kind", Lao PDR stated that "[t]he similar trademark of the same kind of this Article means the trademark which has not yet been registered or granted anywhere in the world."   WT/ACC/LAO/11 
 Page 45 
 
 
Since trademarks are territorial, please clarif y the meaning of the phrase "anywhere in the 
world". 
Answer:  
In addition to the response to Question 79 of WT/ACC/LAO/5, the terminology "anywhere in the 
world" means "outside of country".  Although trad emarks are territorial, the Registration Unit would 
know information of the trademark, whether it has b een already registered abroad, particularly those 
well-known trademarks, or the priority date to be given to applicant for trademark that has already 
been registered abroad, as stated in the Paris Conve ntion for the Protection of Industrial Property.     
Question 126 
In responding to Question 82, WT/ACC/LAO/5, regarding the 1995 Decree Article 12 provision 
referring to the marks that are "confusingly si milar to a trademark or trade name of goods or 
services which are widely well known", Lao PDR st ated that "the evaluation is conducted by a 
search of trade names which…[are] considered wi dely well-known."  How is this evaluation 
conducted in Lao PDR?  What criteria are used in determining whether a trademark or trade 
name of goods or services is "widely well known"?  Who is responsible for making that 
decision? 
Answer:  
In addition to the response to Question 82 of WT /ACC/LAO/5, the terminol ogy "well-known" refers 
to Article 6 bis of the Paris Convention for the Protection of Industrial Property related to well-known 
marks.  The criteria of evaluation is considered firstly by examiners and then by higher officials 
concerned.  This is based on the Paris Convention.  
Question 127 
Also, the 1995 Decree Article 12 makes no reference to  marks that are identical or confusingly 
similar to marks that are the subject of registrat ions or pending applications (but are not well-
known).  Shouldn't this language also be included in Article 12? 
Answer:  
Article 12 of the 1995 Decree is valid for all mark s whether the mark is well-known or otherwise.  
Lao PDR thanks Members for raising this issue, and the 1995 Decree will be accordingly amended to 
incorporate reference to identical  or confusingly similar marks. 
Question 128 
In responding to Question 84, WT/ACC/LAO/5, regarding the 1995 Decree Article 13 provision 
stating that "[t]he rights of the owner of registe red trademark or his consent shall not extend to 
the other acts related to the goods and services ex isting in the Lao PDR", Lao PDR stated that 
"the phrase ‘other acts' means any businesses or services in the area of trade (e.g., wholesale 
and retail trade).  Please provide an example of "other acts" that shows the relationship between trademarks rights and "other acts related to the goods and services" to which the 
rights would not extend. 
Answer:
 
In Lao PDR, the registration for protection of tr ademark is not compulsory.  Therefore, owner's 
trademark is free to use their marks through selling or importing goods, or providing services in the WT/ACC/LAO/11 
Page 46 
 
 territory.  The rights of the owner or his consent could be recognized only if the trademark has been 
registered.  For example, if there is any case of infringement, the trademark owner has the rights to 
take action against any acts after its registration, and the rights shall not extend to other acts before 
such registration.  
Question 129 In responding to Question 84, WT/ACC/LAO/5, regarding the 1995 Decree Article 17 provision 
stating that "[t]he infringer of right under the trademark shall be warned", Lao PDR stated that "the suspected infringer is called upon by the relevant authorities to explain the alleged infringement.  In some instances, the infringer and the rightful owner are also present with the 
view to finding an amicable solution."   
(i) What is meant by "shall be warned"?  Ho w is the process initiated?  Is this process 
initiated in all instances where a complaint is brought and, if not, under what instances 
would this process not be initiated? 
(ii) Please provide a detailed explanation of the process in which the suspected infringer is 
called upon to explain the alleged infringement .  In what instances are the infringer and 
the rightful owner also present?  Who conducts this process? 
(iii) Article 17 provides that the suspected infringer "shall be warned or shall be subjected to 
legal sanction".  In what instances would a suspected infringer be warned?  In what instances would a suspected infringer be subject to legal sanction? 
(iv) How is 1995 Decree Article 17 related to Sect ion V of the Regulation on the Registration 
of Trademarks No. 466/STEA-PMO of 7 March  2002?  To what extent is the parties' 
confidential information, provided for the pur poses of settlement only during the course 
of mediation, included within the STEA memorandum referenced in Article 24 of Section V of the Regulation on the Registration of Trademarks? 
Answer:
 
In addition to the response to Question 84 of WT /ACC/LAO/5 relating to Article 17 of Decree in 
1995, the terminology such as: 
(i) "Shall be warned" refers to the initial st age of administrative procedure when the 
infringement has been undertaken without inten tion.  The suspected infringer is called upon 
by the relevant authorities to explain the a lleged infringement.  In some instances, the 
infringer and the rightful owner are also presen t with the view to finding an amicable 
solution. 
(ii) With regard to the process of administra tive procedure, upon receipt of the petition of the 
rightful owner, STEA will promptly examine whether it is an infringement or otherwise, based on relevant Decree and Regulation.  If so, STEA will communicate with relevant 
authorities such as the Custom Department, Tr ade Department, Economic  Police Department 
and other parties concerned, including the infringer and the rightful owner to clarify the 
infringement, and then the board will determine wh ether or not there is infringement.  Then, 
the board encourages the parties concerned to solve the problem among themselves.  If there 
is no solution, they can proceed to the court.  The report of administrative procedure for such 
case should be signed by relevant authorities. 
(iii) In addition to answer (i), the suspected infri nger shall be subject to legal sanction when he or 
she has waived/breached the agreement among parties concerned or the infringement is 
highly damaging to economic benefits of the rightful owner, etc.  WT/ACC/LAO/11 
 Page 47 
 
 (iv) The Regulation on the Registration of Tr ademarks No. 466/STEA-PMO of 7 March 2002 is 
an implementing measure of the Decree of the Prime Minister on Trademarks No. 06/PM dated 18 January 1995.  Article 18 of the Decree provides the rights for STEA to formulate 
implementing regulations as well as procedures, in cluding the course of mediation as stated in 
Article 17.  
Question 130 
In responding to Question 86, WT/ACC/LAO/5,  regarding Lao PDR's compliance with the 
terms of TRIPS Article 22 (protection of geogra phical indications) and Article 23 (Additional 
Protection for GIs for Wines and Spirits), Lao PDR responded that "Lao PDR is in the process 
of considering to enact the Law on Intell ectual Property which also covers Geographical 
Indications (GI)."  We have received a copy of the new draft Law of Intellectual Property 
(undated); however, the references to GIs is limi ted to Article 13 (definition) and Article 18 
(duration). 
(i) Does the Government of Lao PDR intend to dr aft an additional law covering GIs, or to 
expand the current draft law's coverage of GIs? 
(ii) How does the new draft Law of Intellectual Property comply with TRIPS Articles 22 
and 23? 
(iii) Please confirm that the new draft Law on  Intellectual Property provides the grounds for 
an owner of an earlier protected trademark to prevent the protection or registration of a confusingly similar and later in time geogra phical indication, in accordance with TRIPS 
Articles 16.1 and 24.5. 
Answer:
 
In addition to the response to Question 86 of  WT/ACC/LAO/5 related to the legislation on 
Geographical Indications (GI), the draft Law on Intellectual Property only embodies the main 
principles of intellectual property rights, including su ch references to GI as provided for in Articles 13 
and 18. 
(i) The Government of Lao PDR is in the process of drafting Decree and Regulation to 
implement the Law on Intellectual Property related to GI, and the technical assistance provided by EU under the multilateral cooperati on project between EC and ASEAN (ECAP II 
Project), and France. See also the Action Plan implementing the TRIPS Agreement (WT/ACC/LAO/15). 
(ii) TRIPS Articles 22 and 23 shall be incorpor ated in the implementing Decree and Regulation 
on GI. 
(iii) TRIPS Articles 16.1 and 24.5 shall be inco rporated into the implementing Decree and 
Regulation on GI. 
Question 131 
The 1995 Decree of the Prime Minister on Tradem arks No. 06/PM of 18 January 1995 does not 
provide for cancellation of trademarks.  The Re gulation on the Registration of Trademarks 
No. 466/STEA-PMO of 7 March 2002 refers to "cancellation" in Article 16, stating that "[i]ndividuals or legal entities can apply for ca ncellation of a registered trademark with the 
Registry Unit…".  On this record, we are unabl e to state that the law is TRIPS-consistent 
requiring under Article 15.5 that "Members …shall afford a reasonable opportunity for 
petitions to cancel the registration."  What are Lao PDR's plans for drafting the law and 
regulations regarding cancellation of marks? WT/ACC/LAO/11 
Page 48 
 
 Answer:
 
The Decree of the Prime Minister on Trademarks  No. 06/PM of 18 January 1995 and the Regulation 
on Registration of Trademarks No. 466/STEA-PMO of  7 March 2002 are related to each other as 
regard to the cancellation of trademarks.  
Lao PDR thanks Members for raising this ques tion.  The 1995 Decree on Trademarks will be 
accordingly amended to incorporate this elem ent as provided for in Article 15.5 of the 
TRIPS Agreement.   
Question 132 
In the checklist on TRIPS, WT/ACC/LAO/7, Lao PDR notes in No. 65 that Articles 6 and 13 of 
the Decree on Trademarks No. 06/PM of 18 Ja nuary 1995 does not specifically refer to the 
"similar marks" language of TRIPS Article 16.1 and that "this is planned to be implemented 
through the IP law being considered by the Nati onal Assembly".  To what IP law does this 
statement refer?  Does this statement refer to  the new draft Law of Intellectual Property 
(undated) and, if so, how and where is the "similar marks" language reflected in this draft law?  
If not, please provide information on anticipated timeline and availability of a copy of this draft. 
Answer:  
Lao PDR takes note of this matter and, while expressing its appreciation to Members, assures that the 
new draft Law on Intellectual Property as well as  its implementing Decrees and Regulations will 
reflect the language of "similar marks" as provided for in TRIPS Article 16.1.   
Question 133 
In the checklist on TRIPS, WT/ACC/LAO/7, Lao PDR notes in No. 66 that the "presumption of 
confusion" as provided for in TRIPS Articl e 16.1 "is not provided for yet and will be 
incorporated in a new Decree that will implement the IP law set to be adopted by the National 
Assembly at the beginning of 2006."  Please pr ovide us with a copy of this new Decree. 
Answer:  
In addition to the response in the checklist on TR IPS No. 66, the terminology of "presumption of 
confusion" as provided in TRIPS Article 16.1 will be incorporated in the new Decree, after that 
Lao PDR would make a copy available to the Working Party.  
Question 134 
In the checklist on TRIPS, WT/ACC/LAO/7, La o PDR notes in No. 67 that conformity with 
TRIPS Article 16.3 is ensured by Article 12 of  the Decree on Trademarks No. 06/PM of 
18 January 1995.  How does Article 12 provide  protection for registered well-known marks 
against dissimilar goods or services? 
Answer:  
In addition to the response in the checklist on TR IPS No. 67 that the conformity with the TRIPS 
Article 16.3 is ensured because the Article 12 of Decree in 1995 stated that "A trademark cannot be 
registered if a mark is identical with, or confusi ngly similar to a trademark or trade name of goods or 
services which are widely well- known".   WT/ACC/LAO/11 
 Page 49 
 
 Lao PDR takes note and assures that the new draft Law on Intellectual Property as well as its implementing Decrees and Regulations will reflect clear ly the language in protecting registered well-
known marks against dissimilar goods or services as provided for in TRIPS Article 16.3.  
(e) Patents 
Question 135 
With regard to Law No. 01/PM, Decree on Pa tent, Petty Patent and Industrial Designs: 
Article 21
:  In the version of Article 21 that we have, the first paragraph reads: 
 When the patented invention is patented invention is not exploited…the Registry may 
issue a non-voluntary licence if it is satisfied that, by working the invention locally or by 
importation in the Lao People's Democratic Republic, except if the owner of the patent 
satisfies the Registry that circumstances exist which justify the non-exploitation or insufficient exploitation of the patented invention. 
This text appears to be attempting to provide for a compulsory licence where the provisions of 
Paris Convention Article 5(A)(4) apply, but this is not clear from the text.  Please clarify.   
Answer:
 
With regard to the Decree No. 01/PM on Patent, Petty Patent (Utility model) and Industrial Designs: 
Article 21 relates to the non-use or insufficient expl oitation of patented invention after a period of 
four years from the date of filing or three after the grant of patent.  Such compulsory licence shall be 
non-exclusive and should define th e scope, function, time limit, a nd the amount of the adequate 
remuneration to be paid to the owner of patent as well as the condition of payment as stated in 
Article 5 (A)(4) of the Paris Convention.  
Question 136 
Regarding the Draft Bill, what will be the status of Law No. 01/PM, once the bill "Law on 
Intellectual Property" becomes law?  The bill in cludes articles restating the law set forth in Law 
No. 01/PM, for example, Article 18 of the bill sets forth the duration of intellectual property, 
and sets forth periods that are found in Articl e 17 for patents and Article 35 for industrial 
designs. 
Answer:  
The draft Law stipulates only the main principl es and areas of intellectual property, and upon 
approval, the Decrees and Regulati ons will be developed and considered by the Government of Lao 
PDR, and the existing Decrees as well as Regulations  will be amended accordingly with the aim of 
meeting the requirements of the TRIPS Agreement.  
Question 137 
What is the status of the Draft IP Law referenced in rows 81, 85, 87 and 89 of the Table in 
WT/ACC/LAO/7 (pages 12-13)? WT/ACC/LAO/11 
Page 50 
 
 Answer:
 
Lao PDR is in the process of amending the existing Decree and Regulation related to patent based on 
draft IP Law, which is under the consideration of  National Assembly.  The requirements of the TRIPS 
Agreement as stated in rows 81, 85, 87 and 89 of  document WT/ACC/LAO/7 shall be incorporated in 
new Decree and Regulation. 
Question 138 
We would like to note that industrial design s under TRIPS receive ten years of protection; 
therefore, the Lao PDR draft law is not in co mpliance with TRIPS as Article 18 appears to 
provide only five years of protection.  Please clarify. 
Answer:  
Article 35 of Decree No. 01/PM in 2002 reads: "An in dustrial design shall expire in five years after 
the filing date of the applicati on and could be renewed for two consecutive periods and each period 
lasts five years…", meaning the whole term of protection is 15 years, which is beyond the 
requirements of the TRIPS. 
Question 139 
Row 94 of the Table in WT/ACC/LAO/7 states that new regulations of the FDA of Lao PDR will 
be considered in order to comply with this pr ovision.  Have the regulations been drafted? 
Answer:  
At present, it is still under discussion on preparing this  regulation.  Technical assistance is requested 
for this purpose. 
4. Enforcement Question 140 We recommend that Lao PDR provide more specific provisions on criminal, administrative, and 
civil enforcement as provided in the TRIPS Agreement. 
Answer:
 
The existing Decree No. 06/PM in 1995 and Decree  No. 01/PM in 2002 as well as their implementing 
Regulations provide administrative and civil remedy  that the infringer shall be subjected to legal 
sanctions.  According to the laws of Lao PDR, a nd the draft law on IP, the right holder could choose 
civil or criminal remedies or both, which is consistent with TRIPS Article 41.1.  
Question 141 
Does the right holder choose between civil remedy or a criminal remedy, or are both remedies 
available?  (TRIPS Article 41.1) 
Answer:  
The draft law on IP provides the availability to the ri ght holder to choose civil or criminal remedy or 
both remedies in consistent  with TRIPS Article 41.1.   WT/ACC/LAO/11 
 Page 51 
 
 
Question 142 
Please clarify what cases and/or issues that ca n be appealed to a higher court after final 
adjudication at the trial court level.  What is  the standard of review that is adopted by the 
appellate court?  Is such an appeal as of ri ght or at the discretion of the court? (TRIPS 
Article 41.4) 
Answer:  
Any decision or case could be appeal ed to a higher court if it could not be settled or agreed by the 
parties with respect to the final adjudication at  the trial court level, consistent with TRIPS 
Article 41.4.   
Question 143 What sort of specific mechanism exists that a judge can utilize to order production of evidence?  
Is there any way that a party can submit documents that are redacted or for the court's or attorney eye's only, particularly in trade secret cases?  (TRIPS Article 43.1)  
Answer:
 
During the court proceedings, a judge is authorized to  order the production of evidence which is to be 
made available only for the court's or attorney's "eye only"; the aim being to protect confidential 
information, particularly trade secrets, as provided for in TRIPS Article 43.1.  
Question 144 
Please clarify the provisions related to in junctive relief (temporary restraining order, 
preliminary injunction, and permanent injunction).  What is the current status in implementing 
this requirement?  (TRIPS Article 44.1) 
Answer:  
The Regulation on registration of trademarks No. 466/STEA-PMO dated 7 March 2002 and the 
Regulation on the Implementation of Decree on Patent, Petty Patent and Industrial Designs 
No. 322/STEA-PMO dated 18 February 2003 allow th e right holders to apply for settlement of 
dispute relating to the infringement for administra tive procedure, which could provide action for 
injunctive relief, consistent with TRIPS Article 44.1.  
Question 145 
Please clarify the provisions related to compensato ry monetary damages.  What is the current 
status in implementing this requirement?  (TRIPS Article 45.1) 
Answer:  
Article 23 of the Regulation on registration of trademarks No. 466/STEA-P MO dated 7 March 2002 
and Article 42 of Regulation on the Implementati on of Decree on Patent, Petty Patent and Industrial 
Designs No. 322/STEA-PMO dated 18 February 2003 provide the method for the settlement of 
dispute and the claim for damages from the infringer as regards to compensat ory monetary damages, 
consistent with TRIPS Article 45.1. WT/ACC/LAO/11 
Page 52 
 
 
Question 146 
Please clarify the provisions related to the infringer paying costs.  What is the current status in 
implementing this requirement?  Please clarify the provisions related to the requirement that the infringer pays profits to the right holder.  What is the current status in implementing this 
requirement?  Please clarify the provisions related to statutory damages.  What is the current 
status in implementing this requirement?  (TRIPS Article 45.2) 
Answer:
 
Article 23 of the Regulation on registration of trademarks No. 466/STEA-P MO dated 7 March 2002 
and Article 42 of Regulation on the Implementati on of Decree on Patent, Petty Patent and Industrial 
Designs No. 322/STEA-PMO dated 18 February 2003 provide the method for the settlement of 
dispute and the claim for damages from the infringer as  regards to the infringer paying costs or profits 
to the right holder in accordance with TRIPS Article 45.2. 
Question 147 
Please clarify that in addition to seizure of infringing goods, materials, and implements, that 
such goods, materials, and implements are to be  destroyed in order to take them out of the 
stream of commerce (TRIPS Article 46). 
Answer:  
Article 23 of the Regulation on registration of trademarks No. 466 / STEA-PMO dated 7 March 2002 
and Article 42 of the Regulation on the Implem entation of Decree on Patent, Petty Patent and 
Industrial Designs No. 322/STEA-PMO dated 18 February 2003, provide the method for the 
settlement of dispute related to seizure of infringing  goods and materials, which will be destroyed in 
order to take them out of the stream of co mmerce, consistent with TRIPS Article 46.  
Question 148 
Please clarify the provisions related to the indemn ification of defendant in the case of litigation 
abuse by plaintiff.  What is the current status in implementing this requirement? (TRIPS 
Article 48.1) 
Answer:  
Presently, such a provision is only available within the provisions of the Civil law of Lao PDR.  A 
specific provision will be incorporated into the draft law on IP.  
Question 149 
Please clarify the provisions related to the indemn ification of public authorities acting in good 
faith and within the scope of their authority.  What is the current status in implementing this 
requirement?  (TRIPS Article 48.2) 
Answer:  
See response to Question 148.   WT/ACC/LAO/11 
 Page 53 
 
 
Question 150 
Please clarify the provisions related to administrati ve remedies.  Will these remedies be set high 
enough to compensate the IP right holder?  Wh at is the current status in implementing this 
requirement? (TRIPS Article 49). 
Answer:  
At present, the provisions related to the administ rative remedy based on the Decree on Trademarks in 
1995 as well as the Regulation on the Registrati on of Trademarks No. 466/STEA/PMO dated 
7 March 2002 and, the Decree on Patents, Petty Pate nts and Industrial Designs in 2002 as well as the 
Regulation on the Implementation of the Pa tents, and Decree No. 322/STEA/PMO dated 
18 February 2003, which are related to each other.  With regard to compensation settled by means of 
mediation, most of right holders are satisfied by the administrative procedures.  The result of 
administrative procedures could be ordered by civi l remedy on the merits of a case as provided in 
Article 24 of the Regulation on the Registration of Trademarks No. 466 and Article 43 of the 
Regulation on the Implementation of the Patents, and Decree No. 322 as stated in Article 49 of the 
TRIPS Agreement. 
Question 151 Please clarify the provisions related to indemnification of the defending party if the provisional 
relief is unjustified.  What is the current status in implementing this requirement? (TRIPS Article 50.3) 
Answer:
 
Article 7 of the Criminal Procedure Law No. 1/NA dated 15 May 2004 allows the defendant to protect 
his/her rights and legitimate interests against unjustif ied provisional measures as stated in Article 50.3 
of the TRIPS Agreement.  In the past, there was no ca se related to an indemnif ication of the defending 
party. 
Question 152 
Please clarify the provisions related to temporary restraining orders (both ex parte  and inter 
partes ).  What is the current status in implementing this requirement (TRIPS Article 50.4)? 
Answer:  
The Customs Law Article 76(10) provides that the customs authority has the right to inspect and seize 
goods that violate intellectual property rights.  
Question 153 
What is the current status in the Implem entation Decree(s) for the border measure 
requirements under TRIPS?  Will there be any further updates/amendments to the Lao PDR 
Customs Law (TRIPS Article 51-59 (border measures))?  
Answer:  
See response to Question 152.  WT/ACC/LAO/11 
Page 54 
 
 
Question 154 
What is the current status in implementing this requirement?  (TRIPS Article 61) 
Answer:  
See response to Question 152.  Question 155 Please clarify that in addition to seizure of infringing goods, materials, and implement that such 
goods, materials, and implements are to be destroye d in order to take them out of the stream of 
commerce.  (TRIPS Article 46) 
Answer:
 
The administrative procedures provide for the destru ction of goods that have been found to have 
infringed the Law on Intellectual Property of Lao PDR.  See also response to Question 147.  
VI. TRADE-RELATED SERVICES REGIME 
Question 156 The reply to Question 5 of WT/ACC/LAO/8 (re garding environmental services) states that 
foreign companies are not allowed to supply any environmental services.  Are there Lao 
environmental services firms that can provide wa stewater treatment or air pollution control 
and monitoring services?   
Answer:
 
At present, there are no companies providing w astewater treatment, air pollution control and 
monitoring services in Lao PDR.  
Question 157 In the response to Question 7 of WT/ACC/LAO/8:  Please elaborate on whether or not there are 
any limitations on the number or percentage of foreign suppliers providing the services in question.  Lao PDR indicates that for "Telecommun ications - with regard to fixed line telephone 
services there is no limitation on the number of service suppliers; with regard to mobile phone 
services the maximum number of operators is limited to five."  Please provide clarification on 
the scope of "telecommunications services."  
Answer:
 
With regard to fixed line telephony, there are cu rrently two operators:  one wholly Government 
owned and the other a joint venture with the foreign services provider.  
As for mobile telephony, there are five operators :  two are wholly Government owned, one joint 
venture with foreign services provider, and two are wholly owned by foreign services providers.  
There are some service providers offering internet services.   WT/ACC/LAO/11 
 Page 55 
 
 
Question 158 
Distribution Services:  answer to Question 3 in WT/ACC/LAO/8 mentions that foreign 
participation is not allowed in commission agent and franchising services.  However, in Annex 3 
of the "Decree of the Prime Minister Regarding the Implementation of the Law on the 
Promotion of Foreign Investment," the retail trade is included.  
We would appreciate having a description of the exact scope of retail trade currently opened up 
for foreign investment. 
Answer:  
Foreign investors are allowed to invest in Retail Tr ade as specified in Annex 3 of the "Decree of the 
Prime Minister Regarding the Implementation of th e Law on the Promotion of Foreign Investment".  
It is, however, required to be a joint- venture with domestic investor(s).  
Question 159 
Environmental Services:  answer to Question 5 in WT/ACC/LAO/8 includes the statement "On 
other areas of environmental services including  cleaning services of exhaust gases, foreign 
participation is not allowed."  However, An nex 3 of the "Decree of the Prime Minister 
regarding the Implementation of the Law on the Promotion of Foreign Investment" includes 
"sewage disposal, sweep, cleaning and similar activities".  
We would therefore appreciate having a description of the exact scope of environmental services 
currently opened up for foreign investment. 
Answer:  
Like other services sectors, investment in enviro nmental services are governed by investment laws 
and regulated by relevant ministries, which in the case of "sewage dispos al, sweep, cleaning and 
similar activities" is the Ministry of Communication,  Transport, Post and Construction, and for the 
case of "exhaust gases" is the Science Technology an d Environment Agency.  Apart from the scope of 
opening services sectors as prescribed in the Decree on implementing the Foreign Investment Law, 
regulations making by line ministries are in an on-going process.  
  
_______________ 
 
 WT/ACC/LAO/11 
Page 56 
 
 
ANNEX 1 
Excise Tax Rate  
The Excise Tax is levied at different rates as follows: 
 
Order Goods and services liable to Excise Tax Ad-valorem rates 
(%) 
1 Fuel: 
- Gasoline (super) 
- Gasoline (normal) 
- Diesel 
- Plane gasoline 
- Lubricant, hydraulic oils, grease, and brake oil   
25 % 
24 % 
12 % 10 % 
5 % 
2 Liquor or alcoholic drinks 
- Liquor or drinks with alcoholic content from 15 ˚ upwards 
- Liquor, wine and other drinks with alcoholic content under 15 ˚ 
- Beer  
70 % 60 % 
50 % 
3 -  Mineral water, ready-made drinks, and similar drinks, 
- Aerated drinks, 
- Soda and energy drinks 10 % 
20 % 
30 % 
4 Ready-made tobacco, cigarettes in packet, and cigars 55 % 
5 Perfume and cosmetics 30 % 
6 Playing cards and similar items, tr aditional rockets, fireworks 70 % 
7 Vehicles: 
- Vans with 15 seats and less, 
- Buses with more than 15 seats, 
- Lorries, 
- Motorcycles 
- Jeeps with soft cover 
- Jeeps with hard cover (with maximum of 2000 CC) 
- Jeeps with hard cover (2,001 CC to 4,000 CC) 
- Jeeps with hard cover (with engine volume of minimum 4,001 CC)  
- Cars with a maximum of 1,000 CC 
- Cars with a engine volume between 1,001 and 1,500 CC 
- Cars with engine volume between 1,501 and 3,000 CC 
- Cars with minimum engine volume of 3,001 CC  
- Tall/low pick-up trucks with two doors, two doors and a cabin 
- Tall/low pick-up tricks with four doors, 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-co nditioners, satellite TV signal receivers, 
audio-video players, cameras, audio-video recorders, musical instruments, 
including components and accessories, 15 % 
10 Freezers, water heaters, washing machines, vacuum cleaners, 10 % 
11 Importation, sales and services of billiard/snooker tables, football game 
tables, and other game-playing machines, 20 % 
12 Entertainment services: night clubs, discotheques, karaoke, 25 % 
13 The Consumption of the services of m obile phone, cable TV, internet 10 % 
14 Lottery services 10 % 
15 Casino activities 15 % 
Source: Article 28 of the Tax Law (2005).  WT/ACC/LAO/11 
 Page 57 
 
 
ANNEX 2 
Quarantine Pest in Lao PDR, 2005  
Commodity/ Host Plant Common Name Scientific Name/Causal organism 
Fresh plant products  
 
Fruits, vegetables, cut flowers, ornamental branches  
 
 Fruits and vegetables 
(excluding root crops) 
  
 
Stored products
 
 
Grains meals etc. 
Grains, leguminous seeds 
Leguminus seeds 
 Plants
 
 
Vegetative plant parts  
 
  
Rice  
  
 
  
Maize 
  
 
 
Groundnut 
  
 
Tobacco   
 
Coffee  
 
 Sugarcane  
 
California scale Japaneses rod scale 
Japaneses beetle 
 Mediterranean fruit fly 
Mexican fruit fly 
Queensland fruit fly Great tongarine fly 
 
  
Khapra beetle 
Broad-nosed grain weevil 
Dried bean weevil 
  
 
Texas root rot California scale 
Japanese beetle 
Fig wax scale  
White tip nematode 
Rice stem mematode White leaf(hoja blanca) 
Black streaked dwarf   
Stripe  
White-fringed beetle 
Broad-nosed grain weevil Bacterial leaf blight 
Dry rot 
 
White-fringed beetle 
Bean weevil Grounut chlorotic rosette 
 
Colorado potato beetle Tobacco blue mold 
 
American leaf spot Leaf blight 
Coffee wilt 
 White cane grub 
Leaf scald 
Nematode  
 
Quadraspidiotus perniciosus  Lopholeucaspis japonica 
Popillia japonica  
 Ceratitis capitata 
Anastrepha ludens 
Dacus tryoni  Tetradacus citri  
 
  
Trogoderma granarium 
Caulophilus latinasus  
Acanthoscelides obrectus 
  
 
Phymototrichum omnivorum Quadraspondiotus perniciosus 
Popillia japonica 
Ceroplastes rusci  
Aphelenchoides oryzae 
Ditylenchus angustus Virus 
Virus 
Virus  
Graphognatus leucoloma 
Caulophilus latinasus Erwinia stewartii 
Diplodia Zeae 
 
Panthomorus leucoloma  
Acanthoscelides obrectus Groundnut rosette virus  
 
Leptinotanrarsa decemlineata Peronospora tabacina 
 
Omphalia flavida Colletotrichum coffeanum 
Gibberella xylarioides 
 Phytalus smithi 
Xanthomonus albilineans 
Tylenchorhynchus martini 
 WT/ACC/LAO/11 
Page 58 
 
 
 
Commodity/ Host Plant Common Name Scientific Name/Causal organism 
Potato 
 
 
 
 
  
 
Cassava  
Sweet potato 
  
 
 Cotton 
 
  
 
  
Tomato  
  
 
 
 
  
 
  
 
Onion and other Allium spp Citrus  
 
  
 
  
 
Tea   
 
 
Coconut and other palms 
  
 
 Colorado potato beetle 
Whitefringed beetle 
Potato worm 
Potato cyst nematode  
Black wart 
Bacterial ring rot  Powdery scab 
 
Bacterial blight  
Foot rot  
Stem rot White rust disease 
Virus diseases 
 Cotton boll weevil 
Pink boll worm 
Whitefringed beetle Bacterial leaf blight 
Cotton wilt 
Cotton root rot  
Tomato bacterial canker 
 Bacterial leaf blight 
Bacterial speck 
Tomato pith necrosis 
Yellow tomato cyst 
Nematode Virus  
Virus  
Virus Viroid 
 
Leek Smut Mal secco disease  
Virus  
Virus Virus 
Virus 
Viroid Viroid 
 
Blister blight  Root lesion nematode 
Root knot nematode 
 
Palm weevils 
Lethal yellowing Heart rot 
Red ring nematodes 
Cadang cadang disease  Leptonotersa decemlineata  
Graphognatus leucoloma 
Phthorimaea opercullella 
Globodera pallida 
Synchytrium endobioticum 
Corynebacterium sepedonicum  Spongospora subterranea 
 
Xanthomonus manihotis  
Plenodomus destruens 
Fusarium oxysporum f.sp.ba Coleosporum ipomoeae 
Viruses 
 Anthonomus grandis 
Pectinophora gossipiella 
Graphognatus leuncoloma Xanthomonus malvacearum 
Fusarium oxysporum f.vasinf 
Phymatotrichum omnivorum   
Corynebacaterium michiganense  
Xanthomonas campestris pv. vesicatoria 
Pseudomonas syringae pv. tomato 
Pseudomonas corrugata 
 
Globodera rostochiensis  Tomato black ring virus 
Tomato bushy stunt virus 
Tomato ring spot virus Potato spindle tuber viroid 
 
Urocystis cepulea Frost 
Deuterophoma tracheiphila 
Tirsteza 
Citrus crinkly leaf virus Citrus leaf rugose virus 
Citrus ring spot virus  
Citrus exocortis viroid Citrus cachexia viroid 
 
Exobasidium vexans Pratylenchus loosi 
Meloidogyne 
 
Rhynchophorus spp. 
Mycoplasma-like organism Phytomonus sp. 
Rhadinaphelenchus cocophilus 
Coconut cadang-cadang viroid  WT/ACC/LAO/11 
 Page 59 
 
  
Commodity/ Host Plant Common Name Scientific Name/Causal organism 
Banana and other Musacease  
 
 
 
Pineapple 
Rubber Papaya 
cassava Moko disease 
Banchy top 
Black leaf streak 
 
Mealy bug 
South American leaf blight Papaya ring spot virus 
Cassava bacterial blight Pseudomonas solanacearum 
Virus 
Mycosphaerella fijiensis var 
 
Dysmicoccus brevipes 
Mycocyclus ulei Virus (mild strain) 
Mycoplasma spp 
 
__________