WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/SPEC/LAO/5/Rev.1 
14 June 2012 
 (12-3190) 
Working Party on the 
Accession of the Lao PDR  
 
 
 
DRAFT REPORT OF THE WORKING PARTY ON 
THE ACCESSION OF THE LAO PDR TO THE 
WORLD TRADE ORGANIZATION 
 
Revision 
 
 
  WT/ACC/SPEC/LAO/5/Rev.1 
 Page i 
 
 
  TABLE OF CONTENTS 
 
I.  INTRODUCTION .................................................................................................................. .. 1 
DOCUMENTATION PROVIDED ...................................................................................................... 1  
INTRODUCTORY STATEMENTS .................................................................................................... 1  
II.  ECONOMIC POLICIES .......................................................................................................... 3  
-  Monetary and Fiscal Policy .................................................................................................... .. 3 
-  Foreign Exchange and Payments ............................................................................................ 5  
-  Investment Regime.............................................................................................................. ...... 7 
-  State Ownership, Privatization and State-trading Entities ................................................. 11  
-  Pricing Policies .............................................................................................................. .......... 13 
-  Competitio n Policy ............................................................................................................ ...... 16 
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES .................................... 16  
-  Powers of Executive, Legislative and Judicial Branches of Government .......................... 16  
-  Authority of Sub-Central Governments ............................................................................... 19  
IV.  POLICIES AFFECTING TRADE IN GOODS ................................................................... 20  
-  Trading Rights ................................................................................................................ ........ 20 
A.  IMPORT REGULATIONS .................................................................................................... 22  
-  Ordinary customs duties ....................................................................................................... . 22 
-  Other duties and charges ...................................................................................................... .. 22 
-  Tariff rate quotas, tariff exemptions ..................................................................................... 23  
-  Fees and charges for services rendered ................................................................................. 23  
-  Application of internal  taxes to imports ............................................................................... 24  
-  Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ....................................................................................................................... .............. 25  
-  Customs valuation ............................................................................................................. ...... 29 
-  Rules of origin ............................................................................................................... .......... 32 
-  Other customs formalities ..................................................................................................... . 33 
-  Pre-shipment inspection ....................................................................................................... .. 33 
-  Anti-dumping, countervailing duties, safeguard regimes ................................................... 34  
B.  EXPORT REGULATIONS ................................................................................................... 34  
-  Customs tariffs, fees and charges for serv ices rendered, application of internal 
taxes to exports .............................................................................................................. .......... 34 
-  Export restri ctions ........................................................................................................... ....... 35 
-  Export subsidies .............................................................................................................. ........ 36 
C.  INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS ......................... 37  
-  Industrial policy, including subsidies .................................................................................... 37  
-  Technical barriers to trade, standards and certification ..................................................... 40  
-  Sanitary and phytosanitary measures ................................................................................... 47  
-  Trade-related investment measures ...................................................................................... 60  
-  Free zones, special economic areas ........................................................................................ 61  
-  Government procurement ...................................................................................................... 6 3 
-  Transit ....................................................................................................................... ............... 64  WT/ACC/SPEC/LAO/5/Rev.1 
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  -  Agricultural policies.......................................................................................................... ...... 64 
(a)  Imports ....................................................................................................................... .............. 64  
(b)  Exports ....................................................................................................................... .............. 65  
(c)  Internal policies ............................................................................................................. .......... 65 
-  Trade in ci vil aircraft ....................................................................................................... ....... 66 
-  Textiles regime ............................................................................................................... ......... 66 
V.  TRADE-RELATED INTELLECTUAL  PROPERTY REGIME ....................................... 66  
-  GENERAL ....................................................................................................................... ........ 66 
-  Industrial property protection ............................................................................................... 66 
-  Responsible agencies for policy formulation and implementation ..................................... 67  
-  Participation in international intellectual property agreements ........................................ 68  
-  Application of national and MFN treatment to foreign nationals ...................................... 69  
-  Fees and taxes ................................................................................................................ .......... 69 
-  SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF 
INTELLECTUAL PROPERTY RIGHTS ........................................................................... 69  
-  Copyright and related rights ..................................................................................................  69 
-  Trademarks, including service marks ................................................................................... 72  
-  Geographical indications, including appellations of origin ................................................. 74  
-  Industrial designs ............................................................................................................ ........ 75 
-  Patents ....................................................................................................................... ............... 76  
-  Plant variety protection ...................................................................................................... .... 77 
-  Layout designs of integrated circuits .................................................................................... 78  
-  Requirements on undisclosed information, in cluding trade secrets and test data ............ 78  
-  MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY 
RIGHTS ........................................................................................................................ ........... 78  
-  ENFORCEMENT ...................................................................................................................  79 
-  Civil judicial procedures and remedies ................................................................................. 79  
-  Provisional measures .......................................................................................................... .... 80 
-  Administrative procedures and remedies ............................................................................. 80  
-  Special border measures ....................................................................................................... .. 81 
-  Criminal procedures ........................................................................................................... .... 82 
VI.  POLICIES AFFECTING TRADE IN SERVICES .............................................................. 82  
VII. TRANSPARENCY ................................................................................................................. 85 
-  Publication of information on trade ...................................................................................... 85  
-  Notifications ................................................................................................................. ............ 86  
VIII. TRADE AGREEMENTS ....................................................................................................... 87  
CONCLUSIONS ................................................................................................................... ............... 88  
ANNEX ......................................................................................................................... ........................ 89   WT/ACC/SPEC/LAO/5/Rev.1 
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  I. INTRODUCTION 
1. The Government of the Lao People's Democra tic Republic (Lao PDR) applied for accession 
to the World Trade Organization (WTO) in July 1997.  At its meeting on 19 February 1998, the 
General Council established a Working Party to ex amine the application of the Government of 
Lao PDR to accede to the World Trade Organizati on under Article XII of the Marrakesh Agreement 
establishing the WTO.  The terms of reference and the membership of the Working Party are 
reproduced in document WT/ACC/LAO/2/Rev.12.   
2. The Working Party met on 28 October 2004 under the Chairmanship of H.E. Mr. T. Groser 
(New Zealand); on 30 November 2006, 15 November 2007, and 4 July 2008 under the Chairmanship of H.E. Mr. B. Gosper (Australia); on 14 July  2009, 24 September 2010, and 29 June 2011under the 
Chairmanship of Mr. Zhang Xiangchen (China);  and on 16 March 2012 under the Chairmanship of 
H.E. Mr. Yi Xiaozhun (China). 
DOCUMENTATION PROVIDED 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Lao PDR (WT/ACC/LAO/ 3), the questions submitted by Members on the 
foreign trade regime of Lao PDR, together with the replies thereto, and other information provided by 
the authorities of Lao PDR (WT/ACC/LAO/4, WT/ACC/LAO/5, WT/ACC/LAO/6 and Revisions 1, 2, 3 and 4, WT/ACC/LAO/7 and Revisions 1 and 2, WT/ACC/LAO/8, WT/ACC/LAO/9 and Revisions 1, 2, 3, 4, 5, 6 and 7, WT/ACC/LAO/11, WT/ACC/LAO/12 and Revisions 1, 2, 3, 4 and 5, 
WT/ACC/LAO/13 and Revisions 1, 2, 3, 4, 5 and 6, WT/ACC/LAO/14 and Revisions 1, 2, 3, 4, 5 and 
6, WT/ACC/LAO/15 and Revisions 1, 2, 3, 4, 5 and 6, WT/ACC/LAO/16, WT/ACC/LAO/17, WT/ACC/LAO/18, WT/ACC/LAO/19, WT/ACC/LAO/20, WT/ACC/LAO/24, WT/ACC/LAO/25 and Revisions 1, WT/ACC/LAO/36, [...]), includi ng the legislative texts and other documentation 
listed in Annex I. 
INTRODUCTORY STATEMENTS 
4. The representative of Lao PDR said that his G overnment had implemented a comprehensive 
reform programme since the mid-1980s to transform the economy from central planning towards a market-oriented system.  Lao PDR had joined th e Asia Pacific Trade Agreement in 1975 and the 
Association of South East Asia n Nations (ASEAN) in 1997, with the aim to establish an ASEAN 
Economic Community by 2015, and was negotiating regi onal trade agreements with dialogue partners 
of the ASEAN.  Lao PDR was thereby gradually in tegrating into a regional forum consistent with WT/ACC/SPEC/LAO/5/Rev.1 
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  WTO rules and procedures.  However, the institutio nal base for a market economy remained weak in 
Lao PDR, principally due to landlockedness and underdeveloped infrastructure.  Notwithstanding 
these challenges, his Government remained committed to economic integration as the foundation for 
long-term socio-economic development.  In this  context, WTO Membersh ip would complement 
pro-poor domestic economic and trade reforms in  response to increasing competition in the global 
economy.   
5. Lao PDR was pursuing an open trade regime consis tently and was keen to ensure widespread 
confidence in it.  The trade policy regime was being reformed to enhance transparency and secure an 
enabling trade environment.  Over a period of ten years, his Government had been transforming the legal regime from a framework based on decrees to a system essentially based on laws passed by the National Assembly.  However, as a land-locked LD C, Lao PDR was vulnerable and continued to face 
structural challenges.  He therefore called upon Memb ers to be sympathetic to his country's needs and 
flexible with respect to the terms and conditio ns whereby Lao PDR would be implementing its 
accession obligations.  His Government would seek to benefit from the special and differential 
treatment provisions and the flexibilities granted to LDCs, including the transitional periods and 
technical assistance foreseen in the WTO Agreements, and the General Council's Decision on 
Guidelines for LDCs Accession (document WT/L/ 508).  Sanitary and phytosanitary measures, 
technical barriers to trade, trade-related investme nt measures, industrial subsidies, agricultural export 
subsidies, transparency and intellectual property ri ghts were areas in which his Government required 
particular flexibility and assistance.   
6. Members welcomed Lao PDR's application to join the WTO and pledged to work 
constructively to advance and conclude Lao PDR's accession on appropriate terms.  
While appreciating the domestic reforms already u ndertaken, some Members noted that further work 
was needed to achieve compliance with WTO rules and disciplines.  Several Members indicated that 
they would continue to extend technical assistance  to facilitate Lao PDR's accession to the WTO.  
Lao PDR was a beneficiary of the Enhanced Integrat ed Framework.  The country's status as an LDC 
was recognized, and in keeping with WTO Ministeria l Declarations, Decisions and the Guidelines for 
LDCs Accession, this would be a relevant factor in establishing the terms of accession for Lao PDR.   
7. The Working Party reviewed the economic polici es and foreign trade regime of Lao PDR and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by Members of the Working Party on the various aspects of Lao PDR's foreign trade regime, and on the terms and 
conditions of Lao PDR 's accession to the WTO, ar e summarized below in paragraphs 8 to [..].    WT/ACC/SPEC/LAO/5/Rev.1 
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  II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy 8. The representative of Lao PDR said that contro lling inflation and mainta ining exchange rate 
stability were the main aims of monetary policy.   The central bank - the Bank of Lao PDR (BOL) - 
was in charge of monetary policy and supervised the banking sector pursuant to Law No. 05/95 "On the Bank of Lao PDR" of 14 October 1995 w ith amendments of 14 October 1999.  Money supply 
expansion was calibrated to meet in flation and growth targets.  Alt hough the Asian financial crisis had 
pushed annual inflation to 129 per cent in 1999, th e economy had stabilized once again, and inflation 
had returned to the single-digit level of the 1990s.  The recent global financial crisis had little direct 
impact on the economy of Lao PDR.  The rate of in flation in 2010 was 5.9 per cent due to price hikes 
on fuel and food.  It rose again to 8.2 per cent in 2011.   
9. The BOL regulated the monetary system through indirect monetary policy instruments such 
as mandatory reserve requirements, the issuance of bonds, overdraft facilitie s for commercial bank 
borrowing, and discount facilities for loans secured against treasury bills and BOL bonds; and, when 
necessary, with direct monetary policy interventio ns, including credit/deposit ratios, direct sale of 
foreign exchange to the market, and moral suasion to limit the credit expansion or to smooth 
transitory fluctuations in the exchange rate.  Th e BOL had so far been successful in implementing its 
monetary policy framework with a view to mainta ining low inflation and a stable exchange rate 
within a managed float exchange rate system.  In 2009, the BOL had reduced the short-term interest 
rate from 7 to 4 per cent; maintained the mandato ry reserve requirement ratio at 5 per cent for 
deposits in local currency, and at 10 per cent fo r foreign currency deposits; continued to facilitate 
open-market-operations; and issued BOL bonds to m obilize funds for infrastructure development.  
The short-term interest rate was r eadjusted from 4 to 5 per cent in 2010 . 
10. The banking sector in Lao PDR comprised the BOL, three State-owned commercial banks, 
two joint venture commercial banks, eight privatel y-owned banks and 13 bran ches of foreign banks.  
Banking activities permitted in Lao PDR were sti pulated in Law No. 03/NA "On Commercial Banks" 
of 26 December 2006, replacing Decree Law No . 02/NA of 22 March 2000.  Implementing Decree 
No. 275/PM to the new law was adopted on 25 Sept ember 2009.  A financial sector strategy was 
adopted by Prime Minister's Decree No. 273/PM , dated 22 September 2009 and Decision of the 
Governor No. 276/BOL, dated 20 April 2010.  WT/ACC/SPEC/LAO/5/Rev.1 
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  11. Since 1988, public finances in Lao PDR had b een overhauled with emphasis on improving the 
tax system and controlling government expenditures for fiscal balance and sustainability.  However, 
with increased outlays for health, education and basi c infrastructure in the 1990s, public expenditure 
had outpaced government revenue.  Over the peri od 1994 to 1998, expenditure had accounted for 
21 to 27 per cent of GDP, and revenue between 11 an d 13 per cent of GDP.  The fiscal deficit in 1998 
had amounted to 12.8 per cent of GDP.  Helped by  tax reforms, revenue had been higher than 
expected since the fiscal year 2005/06, while expenditu res had been in line with established targets.  
Over the period 2004/05 to 2009/10, the revenue to  GDP ratio had ranged from 12.1 to 22.3 per cent, 
while the expenditure ratio had been in the 19 to  24.6 per cent range.  Net domestic financing had 
continued to decline.   
12. Tax Law No. 04/95/NA of 14 October 1995 (with amendments of 1998 a nd then of 2005) had 
brought about improvements in the tax system by re ducing the profit tax rates, enlarging the income 
tax base, and enhancing the role of excise taxes.  The tax regime had been transformed further with 
the promulgation of the Tax Law No. 05/NA of 20 December 2011 (superseding the Tax Law 
No. 04/NA of 19 February 2005).  Lao PDR was aiming to broaden its direct and indirect tax bases, 
improve tax efficiency, increase revenues from domes tic taxes, and reduce the dependence on border 
duties.  A breakdown of government revenue fro m 2004/05 to 2009/10 is presented in Table 1.  
Table 1:  Government Revenue 
Government revenue (KN billion) 
Fiscal year 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 
Tax revenue 2,803.1 3,641.1 4,721 5,627.1 6,207.6 7,502.6 
Profit tax 307.2 458.9 918. 6 1,321.6 1,303.0 1,125.0 
Income tax 214.9 234.2 251.8 333.1 424.7 462.4 
Land tax 27.6 30.1 46.6.8 78.0 63.9 77.6 
Business licences 2.2 6.1 1.5 2.5 3.7 2.5 
Minimum tax 12.8 22. 2 19.3 21.5 29.2 33.2 
Turnover tax 673.5 887.1 1,045. 99 1,228.5 1,401.0  1,868.7 
Excise tax 522.8 800.3 998. 7 1,190.0 1,432.5  1,686.7 
Tax on foreign trade 472.0 567.6 598.5 696.5 775.0 890.8 
- Import duties 428.6 514.5 572.6 674.2 726.2 832.0 
- Export duties 43.4 53.1 25.9 22.3 48.8 58.9 
Registration fees 17.6 24.7 49.0 13.9 26.7 44.6 
Other fees 211.2 162.6 261.62 263.4 372.6 702 
Natural resource taxes 94. 8 217.6 273.8 316.5 219.5 450.6 
Timber royalties 189.4 172.5 212.3 105.2 78.1 49.3 
Hydro royalties 57.1 57.2 43.0 56.4 77.7 109.3 
Non-tax revenue 584.3 624. 9 620.3 812.0 822.8 1,036.0 
Leasing income 44.2 36.1 29.9 27.2 41.1 38.0 
Concessions 8.1 7.4 8.7 17.9 30.7 37.6 
Fines 15.3 23.8 33.1 31.4 25.3 29.8 
Administrative fees 69. 2 89.2 94.9 100.9 76.0 122.5 
Dividends 177.8 174.8 156.7 293.3 338.4 419.0 
Interest 47.9 65.0 65.9 105.3 94.7 147.2 
Over flight charges 221.8 228.6 231.2 235.4 203.4 222.4 
Total Revenue 3,387.4 4,266.0 5,341.0 6,439.1 7,030.4 8,538.3  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 5 
 
 
  - Foreign Exchange and Payments 
13. Some Members noted that the national curre ncy of Lao PDR - the kip (KN) - was not 
convertible, and that the IMF had c onducted an analysis to determine wh at restrictions remained that 
prevented Lao PDR from accepting the obligati ons of Article VIII of the IMF's Articles 
of Agreement, including the elimination of forei gn exchange restrictions on the making of payments 
and transfers for current international transactions .  Lao PDR was requested to describe its existing 
foreign exchange regime, indicate how work w as proceeding to enable Lao PDR to accept the 
obligations of IMF Article VIII, and provide a timetabl e for the elimination of restrictions such as the 
repatriation, surrender, and ta x certificate requirements.   
14. The representative of Lao PDR replied that the legal framework on foreign exchange 
management implemented by the BOL was containe d in Edict No. 01/P "On Management of Foreign 
Exchange and Precious Metals" of 17 March 2008 and its implem enting regulations (Instruction 
No. 1/BOL "On the Implementation of Edict on th e Management of Foreign Currency and Precious 
Metals" of 2 April 2010).  Edict No. 01/P (2008)  had amended and replaced the previous Edict 
No. 1/P (2002) to reflect the IMF's recommendati on on Article 13 (about the exchange rate being 
determined by the market) and Article 27 (the need for tax certificates for remitting profits abroad).  
Following the review and the amendment of cer tain provisions in Lao PDR's legal framework, 
the Government of Lao PDR had formally accepted the obligations of Article VIII, Sections 2, 3 and 4 
of the IMF's Articles of Agreement on 28 May 2010.  Notification No. 57/BOL had been adopted on 
6 March 2008 to facilitate the acqui sition of foreign exchange by the public.  Purchases not exceeding 
KN 20 million per person per day required the presentation of an identity card only. 
15. Instruction No. 1/BOL of 2 April 2010, which had superseded Instruction No. 2/BOL (2003) 
and the Additional Instruction No. 1/BOL (2004), prov ided for that foreign exchange earnings might 
repatriated within 120 days, and that resident exporters, except those who had been given specific 
permission (i.e. income used to repay external lo ans approved by the BOL, payment for letters of 
credit approved by the BOL, or conditions stipulated  in a contract between a foreign investor and the 
Government of Lao PDR), were required to remit their proceeds  through any commercial bank 
located in Lao PDR within a stipulated time lim it.  He further added that Regulation No. 1/BOL 
(2000) had been replaced by Notification No. 499/BOL of 7 July 2009, whereby foreign exchange 
surrender by wood exporters was abolished.  WT/ACC/SPEC/LAO/5/Rev.1 
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  16. The representative of Lao PDR said that forei gn exchange transactions were handled by 
commercial banks, foreign exchange bureaus or ot her business entities authorized by the BOL.  
Residents could keep all their foreign exchange proceeds in foreign exchange accounts; no retention 
ratio was specified.  Residents in need of local  currency for domestic payments could sell foreign 
currency to the commercial banks or authorized fore ign exchange bureaus.  Pursuant to Notification 
No. 53/BOL, foreign exchange bureaus only required a copy of an identity card to buy or sell foreign 
exchange to the general public.  In accordance with  Notification No. 57/BOL, foreign exchange could 
be purchased for (i) payment of imported goods; (ii) payment of fees for import or export related 
services, including transportation, insurance and ware house charges; (iii) settlement of foreign debt 
approved by the relevant authorities; (iv) transfer or repatriation of profit, interest and capital from 
foreign investments made pursuant to Lao PDR's in vestment legislation; (v) investment in capital 
assets abroad with government approval; (vi) the ex penses of Lao PDR's embassies, representatives or 
other residents authorized by the Governme nt to operate abroad; (vii) overseas travel 
(official business, commercial purposes, medical treatment, studies, tourism or visits) within limits established by the BOL; (viii) expenses of students and academics duly authorized by the Ministry of 
Education, and within limits established by the BOL;  and (ix) emigrating residents, within limits set 
by the BOL, to cover travel expenses and, as aut horized, to export their capital.  No quotas or prior 
approval requirements existed for the purchase of fo reign exchange through banks by residents or 
non-residents.  Asked about "additional administrativ e requirements" applicable to foreign currency 
transactions above US$10, 000, he said that these requirements referred to withdrawals of cash from 
personal bank accounts in excess of the equivalent of  US$10,000 per day.  In such cases, the bank was 
obliged to conduct due diligence or a "know-your-customer" procedure.  
17. In the absence of full convertibility, the Ba nk of Lao PDR used exchange rates from 
international and domestic (official and parallel) ma rkets to calculate a weighted average exchange 
rate between the Lao kip and the US dollar at the end of each trading day.  This rate became the 
reference rate for the following day, and served as the basis for the BOL (Operations Department) and 
the commercial banks to determin e the buying and selling rates vis-à-vis their customers, e.g. the 
Government, international organizati ons, and the general public.  In 201 2, the average exchange rates, 
buying and selling, had amounted to KN 7,975.83 and 8,011.67 per US$1, respectively.  
18. As for Lao PDR's balance of payments situa tion, he said that Lao PDR's merchandise trade 
balance was usually in deficit, but the overall bala nce had been in surplus since 2002.  Gross foreign 
reserves had been at levels providing 5.4 months of import cover in 2009 an d 4.3 months in 2010.  
The external debt to GDP ratio had declined from 71.3 per cent in 2002 to 48.5 per cent in 2008 and 
further reduced to 43.7 in 2010.  The debt-ser vice ratio had fallen over the same period from  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 7 
 
 
  8.6 per cent in 2002 to 4.6 per cent in 2008 and rose slightly to 4.7 in 2010.  He informed Members 
that the overall balance of payment for 2010 recorded  a surplus of US$97.4 million compared with the 
US$3.72 million deficit in 2009.  
- Investment Regime 
19. The representative of Lao PDR said that La w No. 02/NA "On Investment Promotion" of 
8 July 2009 regulated investments and investors' ri ghts and obligations in Lao PDR.  The new Law 
had unified and replaced Law No. 10/NA "On the Promotion of Domestic Investment" 
(that previously governed domestic investments) and Law No. 11/NA "On the Promotion of Foreign 
Investment" of 22 October 2004 (that previously gov erned foreign investments).  The implementing 
regulation of Law No. 02/NA, Decree No. 119/PM "On Implementation of Investment Promotion 
Law" (see document WT/ACC/LAO/24/Add.1), was adopted on 20 April 2011, which had replaced 
the previous implementing regulations, Decrees No s. 300/PM and 301/PM of 12 October 2005.  
20. In accordance with  Law No. 02/NA "On Investment Promotion", investment could be wholly 
domestic or foreign owned; a joint venture be tween domestic and foreign investors; or a 
joint-business investment contract.  The Law furthe r distinguished between investment in general 
businesses; in concession businesses; and in border or special economic zones.  The list of concession 
businesses had been elaborated in Decree No. 119/PM  "On Implementation of Investment Promotion 
Law".  Article 4 of Law No. 02/NA provided that  the Government should promote and facilitate 
investments, both domestic and foreign, in all sectors, businesses and areas across Lao PDR.   
Exceptions were with regard to threats to nati onal security; the environment; public health; and 
national culture, as reflected in Decree No. 68/PM  "On Controlled Business" (Negative List) of 
28 April 2008 (Table 2).  In response to a specifi c question, the representative of Lao PDR clarified 
that, as defined under Article 2 of the 2005 Enterprise Law, the purpose of the Negative List was to enumerate all businesses which required, prior to  enterprise registration, approval from the 
supervising authorities.  Businesses on the list were not the prohibited businesses or the businesses 
reserved for Lao citizens.  Therefore, the Negative List would not prevent Lao PDR from fulfilling its future market access commitments under the WTO.  He  said that the Negative List was not expected 
to be amended by the authority in the near future.   
21. Investment approval was not automatic.  General business investments required an 
application to a one-stop-service at the Department of Investment Promotion for General Businesses 
under the Ministry of Industry and Commerce or the Provincial Industry and Commerce Department.  
Concession business investments required an invest ment application to a one-stop-service at the 
Ministry of Planning and Investment or the Pr ovincial Planning and Investment Department.  WT/ACC/SPEC/LAO/5/Rev.1 
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  Investors in border or special economic zones were  required to submit an application to a one-stop-
service within the zone.  The timeframe for gran ting licenses was identical for domestic and foreign 
investments.  Data on foreign investment proj ects approved since 2004 is presented in Table 3. 
Table 3:  Approved Foreign Investment Projects (2004 to 2010) 
Years 2004 2005 2006 2007 2008 2009 2010 
Number of projects 161 143 171 191 152 208 207 
Value (US$million) 533.1 1,245.3 2,699.7 1,136.9 1,215.5 4,312.9 1,402.2 
 
22. Investment projects were subject to a regist ration fee established in accordance with Edict 
No. 03/PO "On Fees and Service Charges" of 19 Nove mber 2008 (Table 4).  In the past, the Ministry 
of Finance had also charged a fee for registration as a taxpayer equal to 0.1 per cent of the value of the 
investment.  This fee had been abolished through Prime Minister Instruction No. 04/PM 
"On Streamlining Investment Project Approval Procedure and Investment Promotion" of 
3 March 2005.  In addition to the registration fee, the Ministry of Planning and Investment collected a 
fee per investment application (KN 50,000 per form),  for the issue of investment licences (KN 70,000 
per form), and a service fee for the evaluation of investment proposals (KN 500,000 per report).   
Table 4:  Registration Fees for Foreign and Domestic Enterprises 
No. Enterprise's registered capital Registration fee 
 
1. 
2. 3. 
4. 
5. 6. 
7. 
8. 9. 
10.  
Less than KN 1,000,000  
From KN 1,000,001 to KN 10,000,000  From KN 10,000,001 to KN 20,000,000  
From KN 20,000,001 to KN 50,000,000  
From KN 50,000,001 to KN 100,000,000  From KN 100,000,001to KN 400,000,000  
From KN 400,000,001to KN 1,000,000,000  
From KN 1,000,000,001 to KN 10,000,000,000  From KN 10,000,000,001 to KN 20,000,000,000  
Above KN 20,000,000,001   
Nil 
KN 20,000   KN 50,000   
KN 100,000   
KN 300,000   KN 500,000   
KN 1,000,000   
KN 2,000,000   KN 3,000,000   
KN 5,000,000   
 
23. Asked whether foreign enterprises registered in  Lao PDR were allowed to establish their own 
business chambers or join the Lao National Ch amber of Commerce and Industry (LNCCI), the 
representative of Lao PDR said that any lawfully re gistered enterprise, domestic or foreign-owned, 
could apply for membership to the LNCCI.  Acco rding to Regulation "On the Establishment and 
Activities of the Representative Organizations  of Foreign Business Entities in Lao PDR" 
of 21 June 2005, any foreign business entity in tending to establish its own representative 
organizations could apply for authorization from the Ministry of Foreign Affairs, after the 
consideration and recommendation by the LNCCI.  Currently, many such organizations had been 
established in Lao PDR, representing businesses from China, the European Un ion, Japan, Korea and 
Chinese Taipei.  WT/ACC/SPEC/LAO/5/Rev.1 
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  24. As for investment incentives, the representa tive of Lao PDR said that, being an LDC, 
Lao PDR did not have the resources to provide any financial support or credit.  Investment incentives 
were provided in the form of revenue foregone.  According to Law No. 02/NA "On Investment 
Promotion", investors could, upon written request, receive the incentives available under the new investment regime.  The Law stipulated incentives in  the form of profit tax, import and export duty 
exemptions.  The promoted sectors were agriculture, industry, handcrafts and services based on 
Government priorities for poverty reduction, employ ment, etc., according to Annex 1 of the Decree 
No. 119/PM.  The Government had also designated zones, namely Zone 1 with insufficient socio -economic infrastructure to facilitate investme nts, e.g. mountainous remo te regions; Zone 2 with 
socio-economic infrastructure to partially facilitate  investments; and Zone 3 with infrastructure 
favourable for investments.  To encourage investments in promoted sectors or regions, profit tax 
exemptions were granted for four to ten years in Zone  1; two to six years in Zone 2; and one to four 
years in Zone 3.  Special incentives in the form of  rental or land concessions (from three to 15 years) 
were extended to investments in hospitals, kinde rgartens, schools, vocational schools, colleges, 
universities, research centres and public utilities.  Inv estments in these activities we re also eligible for 
an additional five year profit tax exemption.  Impor t duty exemptions were granted for the importation 
of raw materials, vehicles and equipment used as production inputs (Article 52 of Law No. 02/NA).  
None of the investment incentives extended, pursuant to the Law No. 02/NA "On Investment 
Promotion", were contingent upon local c ontent or export performance requirements. 
25. Previously, Laws Nos. 10/NA and 11/NA, as well as their Implementing Decrees 
Nos. 300/PM and 301/PM, had provided similar incentiv es.  However, to qualify for these investment 
incentives, companies had been required to fulfil a minimum of three among six stipulated conditions, 
namely (i) hiring at least 90 per cent of the la bour force locally; (ii) using model technology; 
(iii) preserving the environment in accordance w ith the Law "On Environmental Protection"; 
(iv) a promoted activity complementing other domes tic production; (v) using more than 50 per cent of 
local raw materials; and (vi) exporting 80 per cent or more of the total output.  Under the local content 
requirement, import duty remission or exemption was only granted for products or materials not 
available domestically.  Some Members had ur ged Lao PDR to eliminate WTO incompatible 
investment measures upon accession, in particular  the export performance and local content 
requirements; provisions requiring foreign-invested co mpanies to hire at least 90 per cent of the work 
force locally (Article 12.5); and obliging foreign-invested companies to train, upgrade professional 
skills, and transfer technology to the local employ ees (Article 13).  The representative of Lao PDR 
took note of Members' comments and agreed to cons ider them when revising Laws Nos. 10/NA and 
11/NA, and their implementing regulations.  He s ubsequently confirmed that these requirements had WT/ACC/SPEC/LAO/5/Rev.1 
Page 10  
 
  been eliminated in Law No. 02/NA "On Investment Promotion" of 8 July 2009 and its implementing 
decree (Decree No. 119/PM).  
26. In response to a question concerning the investor's obligation to provide compensation for 
impacts caused by their business operation, the representative of Lao PDR clarified that this 
obligation, as provided for in Article 69.5 of Law No. 02/NA "On Investment Promotion", was a general obligation deriving from Article 83 of  the Contract and Tort Law No. 01/NA of 
8 December 2008.  According to this Article, a dom estic or foreign investor should be liable for 
damages caused by his act.  The affected party had to file a complaint.  Compensation provided for 
under Article 69.5 of Law No. 02/NA "On Investment Promotion" was non-automatic and subject to a 
court proceeding, in accordance with th e Civil Procedure Law of Lao PDR. 
27. A Member requested Lao PDR to clarify to wh at extent the Lao PDR Registration Authority 
was authorized to suspend or revoke the investme nt, on the basis of environment or socio-economic 
conditions (Article 74 of Law No. 02/ NA "On Investment Promotion").  In reply, the representative of 
Lao PDR said that the authority would only suspend an investment, if the investment operation had 
violated applicable laws and regulations of Lao PD R.  This would include environmental obligations, 
as provided for under Article 70 of Law No. 02/NA.  In accordance with Article 40 of Decree 
No. 112/PM "On Environment Impact Assessment " of 16 February 2010, the Authority could 
determine severe negative impacts of an investment on the basis of the following factors:  (i) degree 
of severity of the environmental and social impacts; (ii) severity of pollution caused by the violation; 
(iii) existence of preventive measure s for foreseeable environmental and social impact; (iv) record of 
violations committed by the project developer; a nd; (v) record of violations committed by the 
investment project.  The enterprise would be disso lved in accordance with the Enterprise Law if no 
solution could be found within the timeframe of su spension, which was determined by the Authority. 
28. In response to further questions with regard to  the conditions and measures for the suspension 
of an investment project in case it violated the Investment Promotion Law, the representative of 
Lao PDR stated that the measures were furthe r clarified in Article 68 of Decree No. 119/PM 
"On Implementation of Investment Promotion Law".  According to the Decree, the first violation 
would be subject to a warning while the second violation might be subject to a suspension or a 
withdrawal of licence upon recommendation of relevant  authorities (the Ministry of Planning and 
Investment (MPI) for concessions businesses and the Ministry of Industry and Commerce (MoIC) for general businesses).  If a suspension was determined, the investor would be given the opportunity to 
continue operating the investment, provided that the violation as a cause of suspension had been 
rectified.  For example, in case an enterprise failed to  pay taxes, the Ministry of Finance might request  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 11 
 
 
  the MPI or MoIC to suspend the operation of that en terprise until it complied with its tax obligation.  
As administrative actions, these measures might be a ppealed to the court in accordance with the 2005 
Petition Handling Law. 
- State Ownership, Privatization and State-trading Entities 
29. The representative of Lao PDR said that the limited period of central planning in Lao PDR 
had mitigated the transition to a market economy.  The role of the State had been scaled down with 
the number of State-owned enterprises dropping from 800 in 1990 to 37 enterprises in 2002 (Table 5).  
Although precise estimates were not available, th e 37 State-owned enterprises were considered to 
employ less than 15,000 people and accounted fo r approximately 4 per cent of Lao PDR's GDP 
in 2002. 
30. Most State-owned enterprises had been privati zed in the 1990s, and the economic significance 
of the State-owned sector was now, in his opinion, similar to that in many market economies.  
Privatization had occurred in services sectors such as telecommunications, transportation, insurance, 
real estate and tourism.  The preferred method of pr ivatization was a joint venture model in which the 
State retained 51 per cent ownership initially, and then reduced its share at subsequent stages. 
31. Asked whether retaining majority State ownership might restrain the privatized enterprises in 
their efforts to improve efficiency, and whether fore ign investors would be able to take control as the 
State was reducing its share, the representative of Lao PDR said that the 37 enterprises would remain majority State-owned until his Government would consider it feasible to reduce its share.  
Foreign ownership of such stakes could be expect ed, and the granting of control over some of the 
privatized enterprises would be considered. 
32. He stated that, at present, Lao PDR had taken no decision to privatize the remaining 
37 State-owned enterprises, as they were consider ed important for national security, defence, and 
economic and social development.  He adde d that Lao PDR was currently implementing a 
programme, supported by the World Bank, to restruct ure State-owned enterprises in order to increase 
their efficiency.  The restructuring programme had be en initiated for certain enterprises, i.e. Electricité 
du Laos (EDL); Lao Airlines; Lao National T ourism; Banque pour Le Commerce Extérieur Lao 
(BCEL); Enterprise of Telecommunication Lao (ETL); and in the supply of water (decentralization of 
the Vientiane Municipality Authority).  No timeta ble had been set for the restructuring of these 
enterprises.  He noted that the restructuring pr ocess did not necessarily include privatization, but 
could lead to it.   WT/ACC/SPEC/LAO/5/Rev.1 
Page 12  
 
  33. The representative of Lao PDR said that the study  for the establishment of a securities market 
in Lao PDR was completed in mid-2010.  The La o Securities Exchange (LSX) was established on 
10 October 2010 and had been operational since Janua ry 2011.  Enterprises which were profitable, 
considered well managed, and in need of capital to expand operations would be prime candidates to 
be listed in the securities market.  As a result of the restructuring programme, 25 per cent of the shares 
of EDL and 30 per cent of the shares of BCEL ha d been sold to the public through initial public 
offering (IPO).  The newly reconstituted EDL-Gen (with 75 per cent shareholding by EDL) and 
BCEL had been listed in the LSX since January 2011.  ETL was planning an IPO of 30 per cent of its 
shares.     
34. Noting a preliminary statement by the representative of Lao PDR that Lao PDR did not have 
State-trading enterprises in the sense of Article XVII of the GATT 1994 and the working definition of 
the Understanding on that Article, but  that his Government would conti nue to consider this issue and 
report to the Working Party if necessary, some Members requested Lao PDR to elaborate on the 
functioning of State-owned enterprises engaging in imports or exports of goods and State "controls" 
on certain imports and exports, re minding Lao PDR that the obligations of the GATT Article XVII 
and the Understanding on that Article applied equa lly to all enterprises owned or controlled by the 
State,  as well as to enterprises to which the State gr anted special or exclusive privileges.  In reply, the 
representative of Lao PDR said that 16 State-ow ned enterprises were currently involved in 
importation or exportation of  goods (Table 5).   
35. A Member requested Lao PDR to elaborate fu rther on whether the 16 enterprises (Table 5) 
operated solely in accordance with commercial cons iderations in their purchases or sales involving 
either imports or exports, and to clarify if they acted in a manner consistent with the 
non-discriminatory principles enshrined in the GATT 1994.   In reply, he said that none of the listed 
enterprises had monopoly or special rights or privile ges used to influence the level of imports.  
These enterprises had been established and operated on the same basis as private enterprises engaged 
in foreign trade, and his Government did not inte rfere in their decision-making.  No enterprise - 
private or State-owned - imported or exported good s on behalf of the Government or engaged in 
stock-building from international trade.  State "contro l" in the context of international trade in goods 
referred to licensing and regulation, and did not im ply the designation of specific firms to conduct 
trade, the setting of prices or profits, or State decision-making regarding purchases or sales. 
36. [The representative of Lao PDR confirmed th at from the date of accession, Lao PDR would 
ensure that all State-owned, State-controlled, and ot her enterprises with special or exclusive privileges 
would make purchases of goods and services, which were not intended for governmental use, and  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 13 
 
 
  sales in international trade, based solely on commercial considerations, e.g. price, quality, 
marketability and availability, and that the en terprises of other WTO Members would have an 
adequate opportunity in accordance with customary practice to compete for such purchases or sales.  
In addition, Lao PDR would not influence, directly or indirectly, commercial decisions on the part of 
State-owned, State-controlled, and other enterprises with special or exclusive privileges, including on 
the quantity, value or country of origin of any g oods purchased or sold, except in a manner consistent 
with the WTO Agreement.  The representative of Lao PDR confirmed that upon accession, Lao PDR 
also would notify and provide information on the ac tivities of all State-owned, State-controlled, and 
other enterprises with special or exclusive priv ileges in accordance with Article XVII of the GATT 
and the Understanding on that Article.  The Wo rking Party took note of these commitments.] 
[The representative of Lao PDR confirmed th at from the date of accession, Lao PDR would 
ensure that all State-owned, State-controlled, and ot her enterprises with special or exclusive privileges 
would make purchases or sales either involving impor ts or exports, which were not intended for 
immediate or ultimate consumption in governmental use, and not otherwise for resale or use in the productions of goods for sale, solely in accordance with commercial considerations, including price, 
quality, availability, marketability, transportation an d other conditions of pur chase or sale, and would 
afford the enterprises of other WTO Members an adequate opportunity in accordance with customary 
business practice to compete for participation in su ch purchases or sales.  In addition, Lao PDR would 
not prevent any enterprise under its jurisdiction from acting in accordance with the principles of 
subparagraphs (a) and (b) of para graph 1 of Article XVII of GATT.  The representative of Lao PDR 
confirmed that upon accession, Lao PDR also would notify of the products which are imported into or exported from its territory by all State-owned, Stat e-controlled, and other enterprises with special or 
exclusive privileges in accordance with Article  XVII of the GATT and the Understanding on that 
Article.  The Working Party to ok note of these commitments.] 
- Pricing Policies 
37. The representative of Lao PDR said that pri ces for most goods and services were set by 
market forces.  Prime Minister's Decree No. 207/PM "On the Administration of Prices of Goods" of 11 October 2001 authorized the Ministry of Indust ry and Commerce to monitor prices or institute 
price controls.  Prime Minister's Decree No . 207/PM had subsequently been replaced by 
Prime Minister's Decree No. 474/PMO "On Prices of Goods and Services" of 18 November 2010 
(see document WT/ACC/LAO/20/Add.1).  This new Decree provided the principles of price administration: (i) prices should be determined by market force; (ii) the Government should respect the right of price determination and price compe tition of business operators in accordance with the WT/ACC/SPEC/LAO/5/Rev.1 
Page 14  
 
  laws and regulations; and, (iii) the Government might apply measures to administer prices only in 
case of necessity, and should adhere to non-discrimination and transparency principles. 
38. Based on the Prime Minister's Decree No. 207/ PM, the Ministry had issued Instruction 
No. 0334/MOC/ITD "On the Implementation of Pri ce Administration" of 22 March 2002, making 
some 30 products/product groups subject to price cont rols or surveillance (Tables 6(a) and 6(b)).  
He noted that the plan to revise Instruction No. 0334/MOC/ITD was no longer being pursued.  
Lao PDR had also adopted a list of essential utilities (services) subject to price administration (Table 
6(c)).   
Table 6(a):  Price Controls in Lao PDR 
 HS Number Product description Measure 
1. 2710, 2711 Fuel and gas Maximum prices 
2. 7213-7215 All kinds of steel for construction 
3. 2523 Cement 
4. 1006 Rice Minimum prices 
 
Table 6(b):  Price Surveillance in Lao PDR 
 HS Number Product description 
1. 39,18, 4409, 6904, 6905, 
6907, 6908 Roof, floor and wall tiles 
2. 7907 Roof made of zinc 
3. 4407 Sawn wood 
4. 3208-3210 All kinds of house paint  
5. 3917 PVC pipes 
6. 8701 Tractors 
7. 8413 Water pumps 
8. 8432, 8433 Harvesting or threshing machines 
9. 31 Fertilizer 
10. 2309 Animal feed 
11. 8437 Milling machinery (of cereals and vegetables) 
12. 8437.20 Milling machinery (of rice) 
13. 8712 Bicycles 
14. 8711 Motorcycles 
15.  Student clothing 
16.  Writing tools 
17.  Raw materials for factories 
18. 30 Medicines 
19. 1701, 1702 Sugar 
20. 2103.10.00 Soya sauce 
21. 2103.90.30 Fish sauce 
22. 2922.42.20 Monosodium glutamate 
23. 1507, 1511, 1512, 1513 Vegetable oil 
24. 1101, 1102, 1106 Flour 
25. 0201, 0202, 0203, 0207, 
0209, 0210, 1602 Meat (cattle, pork and poultry) 
26. 03 Sea fish and fresh water fish  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 15 
 
 
   
Table 6(c):  Price Administration on Essential Utilities (Services) 
 Sector/Subsector Measure 
1 Electricity (CPC 1710) Tariff is based on Notification No. 302/MoIH, dated 24 June 2005. 
2 Water supply (CPC 1800) Tariff is based on Decision No. 494/VT, dated 1 September 2009. 
39. On price controls, in order to support farmers'  incomes, a minimum (floor) price for glutinous 
rice was determined and recommended annually by the Government of Lao PDR to serve as an 
optional reference for the sale and purchase of glutinous rice between farmers and mill houses.  
The representative of Lao PDR confirmed that such  minimum price was not compulsory and did not 
affect imported rice.  The minimum prices had been below the international market price in almost all 
years.  In his view, the price control on rice had no impact on the import and export regime of 
Lao PDR.  Lao PDR re-examined th is measure to ensure its consis tency with the provisions of the 
WTO Agreements.  Considering the socio-economic importance of rice, the Government would like 
to maintain the possibility of using this measure .  He added that Lao PDR had no policy prohibiting 
the importation of rice and noted that his Governme nt included rice in the automatic licensing regime 
instead of the non-automatic licensing regime. 
40. Maximum prices applied to fuel and gas – all of which was imported – and to domestically-
produced and imported construction steel and ce ment.  The maximum price was guided by the 
consumer price index and calculated by the suppliers , who made allowances for all costs and a profit 
margin.  The proposed prices were considered by th e Internal Trade Department of the Ministry of 
Industry and Commerce, and the Department mon itored the adherence to  the approved maximum 
prices.   
41. On price surveillance, the representative of La o PDR said that the measure was principally a 
monitoring device for goods where price hikes could have severe repercussions  on households and did 
not imply any government intervention in the mark et.  The measure essentially implied inspection by 
officials from the Internal Trad e Department of the Ministry of Industry and Commerce or the 
Provincial Offices of Industry and Commerce.  The inspectors controlled that traders displayed the 
prices of their products appropriate ly, and conducted spot checks to ensure adherence to the pricing 
regulations.  Traders were required to coopera te fully with the inspecting officials.   
42. The representative of Lao PDR confirmed that, from the date of accession, Lao PDR would 
apply price controls in a WTO-consistent fashion, including Articles III:4 and III:9 of 
the GATT 1994, and Article 4 of the WTO Agreement on Agriculture, and Article VIII of the General 
Agreement on Trade in Services (GATS), and take account of the interests of exporting WT/ACC/SPEC/LAO/5/Rev.1 
Page 16  
 
  WTO Members.  Lao PDR would also publish the lis t of goods and services subject to price control 
and any changes to this list in its Official Gazette.  The Working Party took note of these 
commitments.  
- Competition Policy 
43. The representative of Lao PDR said that Decr ee No. 15/PMO "On Trade Competition" of 
4 February 2004 provided the legal basis for the promotion of fair competition in Lao PDR.  
The Decree provided for rules, measures and en forcement mechanisms to regulate monopolization 
and all forms of unfair competition in trade, aiming at promoting fair trade, protecting the rights and legal interests of consumers, and encouraging business activities to function efficiently in Lao PDR.  
The Decree foresaw the establishment of a Trade Competition Committee within the Internal Trade 
Department of the Ministry of Industry and Commerce, and his authorities were in the process of 
establishing this enforcement agency.   
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government 
44. The representative of Lao PDR said that exte nsive powers were vested in the National 
Assembly, granted through the Constitution of  the Lao PDR - its first, promulgated on 
15 August 1991, and subsequent ly amended on 6 May 2003.  The 115-member Assembly had 
exclusive authority to decide on matters of wa r and peace; to enact or amend the Constitution and 
laws; to elect or remove the President, the Vice -President (on the recommendation of the National 
Assembly Standing Committee), the President of  the People's Supreme Court and the Public 
Prosecutor-General; to appoint or remove member s of the Government on the recommendation of the 
President; to create or dissolve ministries; to introdu ce or abolish taxes; to ratify or reject Lao PDR's 
accession to international treaties; to grant amnest ies; and to exercise any other rights or duties 
prescribed by law.  The National Assembly supervi sed and oversaw the activities of the executive and 
judicial branches pursuant to Chapter V of the 2003 Constitution.   
45. The executive comprised the President, the Prime Minister and his/her Government and local 
authorities (the Governors of Provinces, the Chiefs of Districts and the Heads of Villages).  The President was the Head of State and the Chie f of the Armed Forces.  The National Assembly 
elected the President by two thirds majority for five  year terms in office.  Presidential powers, with 
the approval of the National Assembly, included appoi nting the Prime Minister for five-year terms; 
and issuing decrees.  The Government of Lao PDR consisted of the Prime Minister, the Deputy Prime  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 17 
 
 
  Ministers, Ministers and Chairmen of ministry-equiv alent authorities.  The Prime Minister supervised 
the work of the ministries and other government organizations.  The Govern ment was responsible for 
implementing the Constitution, laws and resolu tions adopted by the National Assembly and 
presidential edicts and decrees; preparing so cio-economic development plans and annual State 
budgets for submission to the National Assembly; the functioning of all branches of central and local 
administration; suspending or revoking decisions and instructions of ministries, other government 
organizations or local administration if contra ry to existing laws; and signing and implementing 
treaties with foreign States.   
46. The Ministry of Industry and Commerce was resp onsible for international and bilateral trade 
policy and his Government's interests in the WTO.  Other line ministries  or agencies involved in trade or 
tariff policy matters were the Prime Minister's Office, the Ministry of Finance (including the Customs 
Department), the Ministry of Agriculture and Forest ry (agricultural policy, sa nitary and phytosanitary 
measures), the Ministry of Health  (health safety relating to food a nd drugs), the Ministry of Public 
Works and Transport (TBT), the Ministry of Energy and Mining (TBT), the Minist ry of Public Security 
(TBT), the Ministry of Information, Culture and T ourism (copyright), the Minist ry of Natural Resources 
and Environment (environmental protection) and th e Ministry of Science and Technology (TBT and 
protection of intellectu al property rights).   
47. Pursuant to the amended Law No. 09/NA "On the People's Court" of 26 November 2009, 
39 Regional Courts had been established to replace the District Courts; the Courts of Appeal had been 
named as the High Courts; and, the Juvenile Courts  would be established at  provincial level and in 
Vientiane Capital.  The new judiciary in Lao PD R consisted of Regional C ourts; Juvenile Courts; 
Provincial and Vientiane Capital Court (Court of  First Instance); High Courts; and the People's 
Supreme Court.  Regional Courts, the lowest tier of the court system, dealt with cases relating to family relations; and civil or criminal cases i nvolving claims of less than KN 300,000,000 or prison 
terms of less than two years.  Appeals of the d ecisions of the Regional Courts and other civil and 
criminal cases were addressed to the Provincial Courts or Vientiane Capital Court.  Appeals of decisions of the Provincial Courts or Vientiane Ca pital Court could be brought to the High Courts.  
The Supreme Court was the last resort.  
48. Law No. 05/NA "On the People's Courts of La o PDR" of 21 October 2003 had established 
civil and commercial chambers attached to the prov incial courts, appellate courts and the Supreme 
Court of Lao PDR.  In accordance with Article 48 of the Law No. 02/NA "On Civil Procedures" of 
15 May 2004, commercial chambers had the jurisd iction to adjudicate on business or commercial 
matters, including cases relating to business or co mmercial contracts and documents (promissory WT/ACC/SPEC/LAO/5/Rev.1 
Page 18  
 
  notes, bills of exchange, cheques, etc.); commercia l loan Agreements; the bankruptcy and liquidation 
of enterprises; cases involving business or commercial relationships concerning the importation or 
exportation of goods, including trade support services; a nd violations of copyright and trademarks.  
The commercial chambers did not have the authorit y to rule on trade-related administrative decisions 
of the Government.   
49. On the right to appeal administrative decisions to  the courts or an independent tribunal in line 
with Article X of the GATT 1994 and WTO requirements, the representative of Lao PDR said that 
natural or legal persons had the right  to lodge complaints in the civil chambers of the courts to protect 
their interests or claims resulting from governme ntal action (Article 47 of Law No. 02/NA "On Civil 
Procedures" of 15 May 2004).  Few administrative ru lings on trade issues had been requested to be 
redressed in the court system since the entry into force of the Law.  Complaints against administrative 
rulings could be lodged by importers or exporter s through administrative or judicial procedures.  
Thus, customs decisions could be appealed to the higher customs authorities and, if not appropriately 
settled, a petition could be filed in court.  The est ablishment of a specialized  Commercial Court or an 
administrative tribunal was not being contemplated at this stage.   
50. The representative of Lao PDR said that Decree No. 106/PM "On the Resolution of Economic 
Disputes" of 15 July 1994 provided a mechanism for dispute resolution, including mediation and arbitration procedures.  The Decree had been upgraded to a Law No. 02/NA "On Resolution of 
Economic Disputes" of 19 May 2005, which was further revised as Law No. 06/NA "On Resolution 
of Economic Disputes" of 17 December 2010.  An Office of Economic Disputes Resolution had been 
established in the Ministry of Justice.  Arbitra tion sub-centres (branches) had been created in the 
Luang Prabang, Oudomxay and Savannakhet provin ces.  Economic disputes (apart from appeals or 
complaints against the decisions of government bodies) could be brought to the Office of Economic 
Disputes Resolution within three years of the disput e.  Decisions or awards  by the Office of Economic 
Dispute Resolution could be appealed in the co mmercial chambers attached to the courts.   
51. The representative of Lao PDR confirmed that th e current constitution, laws and regulations 
provide the necessary institutional base for the prom pt administrative and judicial review of the 
administrative actions.  The representative of Lao PDR further confirmed that from the date of 
accession, Lao PDR's laws and regulations would provi de individuals or enterprises affected by any 
administrative action subject to WTO provisions, the ri ght to appeal such action, without penalty, to 
the courts or other independent tribunal in confor mity with WTO obligations, including those set out 
in Article X of the GATT 1994, Article 23 of the WTO Agreement on Subsidies and Countervailing 
Measures, Article 11 of the WTO Agreement on Implementation of Article VII of the GATT 1994,  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 19 
 
 
  Article 62 of the WTO Agreement on Trade-Relate d Aspects of Intellectual Property Rights and 
Article VI of GATS.  The Working Party took note of these commitments. 
52. The representative of Lao PDR said that the hierarchy of legislation comprised - in 
descending order - (i) the Constitution of the Lao PDR;  (ii) Laws adopted by the National Assembly; 
(iii) Edicts promulgated by the President on th e recommendation of the Standing Committee of the 
National Assembly; (iv) Presidential Decrees; (v) Prime Minister's Decrees; and (vi) Government 
resolutions, and instructions or decisions of the Prime Minister or ministries for implementing laws or 
decrees.  Although the legislation hierarchy did not include treaties and international agreements 
ratified by Lao PDR (amending or pr omulgating new domestic laws), he noted that such treaties and 
international agreements prevailed the Constituti on and laws adopted by the National Assembly.  
Edict No. 01/PO "On Conclusion, Accession and Im plementation of Treaties" of 7 October 2009 
regulated the negotiation, ratification and implem entation procedures of international treaties.  
Pursuant to Article 31, paragraph 4 of this Edict, international trea ties prevailed over national laws in 
case of conflict.  Presidential and Prime Minister decrees were based on laws or edicts specifically authorizing the issue of such decrees or orders .  Only the National Assembly could amend the 
Constitution (Article 97 of the 2003 Constitution), or ratify Lao PDR's accession to treaties and 
international agreements such as the WTO.  Following approval of Lao PDR's accession terms by the National Assembly, the Prime Minister's office would notify line ministries and publicize the 
ratification.  WTO Agreements would prevail over domestic legislation in case of conflict.  Lao PDR 
was pursuing a programme of legislative reform, th e Plan for Building New Laws and Amendment of 
Laws (2011 to 2015), to introduce WTO-consistent le gislation and implement WTO provisions.  Laws 
recently adopted or amended included the laws on Investment Promotion; Customs; Tax; Petition 
Handling; Forestry; Value Added Tax; Commercial Banks; State Inspection; Resolution of Economic 
Disputes; Enterprises; Intellectual Property; Livestock Production and Veterinary; and Plant 
Protection.  The representative of Lao PDR update d the Working Party on progress in legislative 
reform and the outlook for further reforms in th e Legislative Action Plan (document WT/ACC/LAO/9 
and its Revisions).   
- Authority of Sub-Central Governments 
53. The representative of Lao PDR said that his country was divided into 16 provinces and 
Vientiane Capital.  The provincial administrati on, comprising representatives of central government 
ministries, administered policies on behalf of - and as determined by - the Government of Lao PDR.  The Office of the Public Prosecutor was responsible for monitoring the full and uniform adherence of 
the laws and regulations by all ministries, minist ry-equivalent bodies, government organisations, local WT/ACC/SPEC/LAO/5/Rev.1 
Page 20  
 
  administrations, enterprises, and citizens.  The pr ovinces and Vientiane Capital had no authority to set 
tax rates, grant subsidies or regulate trade independe ntly of the central authorities.  The sub-central 
authorities reported regularly to the central government  to ensure that the Government's policies were 
properly implemented.  The Ministry of Industry and Commerce could dispatch envoys to examine the implementation of trade-related policies by the local authorities.   
54. [Asked how the central authoriti es might address complaints by  importers or exporters of 
sub-central entities violating WTO provisions, the re presentative of Lao PDR replied that from the date 
of accession, Lao PDR would apply WTO provisions, including Lao PDR's Protocol of Accession, uniformly throughout the entire customs territory, including its special economic zones, and other areas where special regimes for tariffs, taxes and regulations were established.  Article 4 of the Law No. 07/NA "On the Handling of Petition" of 9 Novemb er 2005 provided the legal redress to companies 
facing an apparent breach of WTO obligations by su b-central authorities.  He further confirmed that 
when informed of a situation where WTO provisions were allegedly not being applied or were applied 
in a non-uniform manner, central authorities would investigate such claims [promptly] and, if the 
charges were found to be valid, act to enforce WTO provisions without requiring affected parties to 
petition through the courts.  The Working Party took note of these commitments.] 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights  
55. The representative of Lao PDR said under Decr ee No. 205/PM "On the Management of Export 
and Import" of 11 October 2001, an y persons wishing to engage in  importation or exportation for 
commercial purposes must be register ed as enterprises in Lao PDR.  A Member recalled that the right to 
import and export, as required unde r the GATT 1994, was distinct fro m the business of importing and 
exporting.  The right to import and export allowed a foreign exporter located outside Lao PDR to enter 
its products into the customs territory of Lao PD R, clear customs formaliti es, and access the same 
channels of distribution as domestic firms, w ith no requirements or conditions imposed on such 
importation unless these were also imposed on the domestic like product.  This Member understood that 
a Lao product could be sold directly to a customer in Lao PDR whereas an imported product could not 
be so sold as it had to be imported by a Lao compan y or by a foreign firm with domestic presence.  Lao 
PDR appeared to deny foreign firms located outside th e country the right to import as it did not provide 
for the registration of such enterpri ses in Lao PDR.  In this light, the representative of Lao PDR was 
requested to explain how foreign firm s or individuals would be able to exercise trading rights and be the 
importer or exporter of record wi thout establishment in Lao PDR.  Lao PDR was asked to modify its 
rules to provide for trading rights consistent with WT O requirements, specifically Articles III and XI of  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 21 
 
 
  the GATT 1994.  Lao PDR was also requested to conf irm that any registration fees for importers and 
exporters would, by the date of accession, conform with WTO requireme nts and approximate the cost of 
services rendered.  This Member suggested that Lao PDR develop an action plan specifying dates by 
which Lao PDR intended to replac e or amend existing legislation concerning trading rights, in 
conformity with WTO obligations.   
56. In response, the representative of Lao PDR stated that Decree No. 205/PM had been replaced by 
Decree No. 114/GOL "On the Impor t and Export of Goods" of 6 Ap ril 2011, which allowed any 
persons, whether or not residing in Lao PDR, to  engage in import activities.  Under Decree 
No. 114/GOL the right to import goods would not gr ant importers the right to distribute goods in 
Lao PDR.  Unlike the right to distribute, the right to  import did not require enterprise registration in 
Lao PDR. 
57. He further explained that any importer could (i ) import the goods that were subject to import 
licensing (see Tables 11 and 12) after obtaining import licence from the competent authorities; 
(ii) import the goods that were subject to the sa nitary and phytosanitary measures or technical 
regulations (see sections on TBT and SPS) after passing the contro ls or obtaining the certifications from 
the competent authorities of Lao PDR or from any other international certification authority of the 
exporting country or a third country recognized by th e Government of Lao PDR;  and (iii) import goods 
that were not covered by the above categories (i) an d (ii) by proceeding directly with the customs 
clearance at the relevant customs checkpoint.  He  said that there were currently no registration 
requirements for prospective importers of record.  Lao PDR was studying the necessity to establish the 
registration regulation for importers of record.  
58. [The representative of Lao PDR confirmed that af ter five years from the date of accession, with 
respect to the goods listed in Table 7, and from th e date of accession, for all other goods, Lao PDR 
would grant any natural or legal person of a WT O member, regardless of physical presence or 
investment in Lao PDR, the right to  be the importer of record, and that  its laws and regulations relating 
to the right to trade in goods and all fees, charges or taxes levied in connect ion with such trade would 
conform fully with its WTO obligations, including Ar ticles VIII:1(a), XI:1, and III:2 and 4 of the 
GATT 1994.  The representative of Lao PDR expressed th at the right to trade in goods would not grant 
importers the right to distribute good s in Lao PDR. He confirmed that importers would be free to select 
a distributor or distributors of their choice. He al so expressed his understanding that the granting of 
trading rights would not affect the  rights of the Go vernment of Lao PDR to a dopt regulations consistent 
the WTO Agreement, including those relating to import licensing, technical barriers to trade or sanitary 
and phytosanitary measures.  The Workin g Party took note of these commitments.] WT/ACC/SPEC/LAO/5/Rev.1 
Page 22  
 
  Table 7: Goods for which the right to be the importer of record would be granted  
after five year from the date of accession  
HS Code Goods 
1006 Rice 
27.10 
27.11 Petroleum and Gas 
25.23 
38.16 Cement 
72.13-72.16 Steel 
 
A. IMPORT REGULATIONS 
- Ordinary customs duties 
59. The representative of Lao PDR said that Lao PDR had applied the AS EAN Harmonized Tariff 
Nomenclature (AHTN) since 1 October 2003.  The nomenclature was currently based on the 
2007 version of the Harmonized Co mmodity Description and Coding Sy stem (HS).  All MFN customs 
duties were ad valorem , applied on the c.i.f value of the impor ted goods, with a median tariff rate of 
5 per cent and a weighted average tariff of 14.7 pe r cent; 9.5 per cent unweighted.  Lao PDR maintained 
six tariff bands with duty rates of 5, 10, 15, 20, 30 a nd 40 per cent.  Low tariffs (5 to 10 per cent) were 
set on imported raw materials and agricultural inputs.  The highes t rate applied to "luxury goods" 
(document WT/ACC/LAO/5, Annex IV),  or to protect local agricultura l, handicraft and manufacturing 
activities. 
60. The Customs Department in the Ministry of Finance was responsible for customs 
administration, and the Ministries of Finance, Industry and Commerc e, and Agriculture and Forestry 
were the government bodies involved in  setting tariff levels.  Any change in the tariff rates required 
approval by the National Assembly, following up on a proposal from the Prime Minister's Office.   
[Lao PDR's revised offer on goods dated 10 Au gust 2010 and the applied tariff rates dated 
2 November 2006 are available for consultation (see  notice in documents WT/ACC/SPEC/LAO/2/Rev.3 
and WT/ACC/LAO/10, respectively).] 
- Other duties and charges 
61. The representative of Lao PDR said that, other than ordinary customs duties, Lao PDR did not 
levy any "other duties and charges" in the meaning of Article II:1(b) of the GATT 1994.  He confirmed 
that Lao PDR would not introduce new "other duties a nd charges".  He further confirmed that Lao PDR  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 23 
 
 
  would bind "other duties and charge s" as defined in Article II:1(b) of the GATT 1994 at zero in its 
Goods Schedule.  The Working Party took note of these commitments.   
- Tariff rate quotas, tariff exemptions 
62. The representative of Lao PDR said that La o PDR did not apply tariff rate quotas on any 
product.   
63. The representative of Lao PDR noted that, in accordance with Chapter 2 of the Customs Law 
No. 02/NA of December 2011, tariff exemptions applied to a range of imported goods, namely 
(i) personal belongings of passengers;  (ii) certain household items when moving residence; (iii) gifts 
carried by delegations from overseas official visits;  (iv) goods imported as aids or loans from foreign 
governments; (v) essential items used for education,  health, scientific study, samples and religious 
purposes;  and (vi) special items used for national defence and public security.  He added that the 
1 per cent tariff reduction as an investment incentiv e provided pursuant to the Law "On the Promotion 
of Foreign Investment" and the Law "On the Pr omotion of Domestic Investment" had been 
discontinued.  Under the new investment regime, th e import of raw materials, vehicles and equipment 
used for production were exempt from duty (Article 52 of Law No. 02/NA "On Investment 
Promotion").  No exemptions were discretionary, and the Minister of Finance did not have the 
authority to grant duty exemptions.   
64. The representative of Lao PDR confirmed that an y tariff rate quota introduced after the date 
of accession would be applied and administered in conformity with WTO rules, including MFN and 
national treatment provisions.  The Working Party took note of this commitment. 
- Fees and charges for services rendered 
65. The representative of Lao PDR said that pursuan t to Edict No. 03/PO "On Fees and Services 
Charges" of 19 November 2008, the Customs Serv ice charged some customs processing fees on 
importation and exportation, ranging from KN 250 to KN 100,000.  The Ministry of Health collected 
a fee for the inspection of imported medicines (KN 20,000 per invoice); the biennial registration of 
imported foodstuff subject to controls (KN 50,000 per product); and a fee for issuing import permits 
for food products which had been converted from an ad valorem  (0.05 per cent) to a specific rate 
(KN 20,000 per invoice).  The Ministry of Science and Technology (MoST) collected a quality 
inspection fee on imported fuels, steel bars, and cement, which had been reviewed, and converted 
from an ad valorem  to a specific rate (KN 600,000 per invoice) in accordance with Regulation 
No. 1226/PMO-NAST of 17 July 2009.  The Ministry of Industry and Commerce and relevant WT/ACC/SPEC/LAO/5/Rev.1 
Page 24  
 
  competent licensing authorities charged fees (KN 10,000 or KN 40,000 per set) for issuing import or 
export licences.  Warehouse authorities collected non- ad valorem  warehouse fees, which would be 
based on the type of goods and the period of storag e.  All these fees and charges set-out in Edict 
No. 03/PO "On Fees and Services Charges" were enum erated in Table 8 (see Annex).  He added that 
the Edict was being revised and woul d be adopted by September 2012.   
66. The representative of Lao PDR confirmed that, from the date of accession, all fees and 
charges for services rendered, applied on or in connection with importation or exportation, would 
conform with the provisions of the WTO Agreemen t, in particular Articles VIII and X of the 
GATT 1994.  The Working Party took note of this commitment. 
- Application of internal taxes to imports 
67. The representative of Lao PDR said that th e Tax Law No. 04/NA of 2005 was amended to 
become the Tax Law No. 05/NA of 20 December 2011.  According to Articles 18-20 of the 2011 
Tax Law, excise taxes ranging from 5 to 90 per cen t were levied on inflammable fuel; gas for 
vehicles; alcohol, beer and alcoholic beverages; so ft drinks; fruit juices; tobacco, cigarettes, and 
cigars; crystal objects or jewelleries; carpets; furniture; perfumes and cosmetics; playing cards and 
gambling equipment; rockets and fireworks; moto rcycles, motor vehicles and parts; speedboats, 
yachts, motorized sports boats; satellite televisi on receivers, cameras, telephones, audio and visual 
players and recorders, and musical instruments;  air conditioners, washing machines and vacuum 
cleaners; billiard and snooker tables, bowling eq uipment, and football game tables; and gaming 
stations/machines.  Excised tax es were also collected on certain services.  The goods and services 
subject to excise tax are listed in Table 9.  The excise tax rates no longer distinguished between imported and domestically-produced goods.  Previously, and as noted by some Members, the excise 
duty regime based on Notification No. 1061/MOF of 13 June 2003 had imposed substantially higher 
duties on imports than on domestic production.  Purchases by embassies and international 
organizations, or for externally-funded projects; kerosene; alcohol for medicinal purposes (Accon 90); 
activities by the disabled; and exported excisable goods; were not subject to excise tax.   
68. The representative of Lao PDR said that Lao PD R previously applied a turnover tax pursuant 
to Tax Law No. 04/NA of 19 February 2005.  Two ta x rates, 5 or 10 per cent, had been levied.  
The two tax rates had been unified to a single rate  of 10 per cent in accordance with Edict No. 001/OP 
"On Amendment of Rates of Business Turnover Ta x, Profit Tax and Salary Income Tax" of 
1 March 2011.  According to Article 13 of the 2005 Tax Law, some goods and services were exempt 
from the turnover tax, e.g. equipment imported fo r research projects, imported vaccines, education 
materials, goods and services related to afforestation, and goods and services related to aid projects.     WT/ACC/SPEC/LAO/5/Rev.1 
 Page 25 
 
 
  A refund mechanism allowed businesses to deduct turnover tax paid on raw materials from their 
monthly turnover tax bills.  According to Artic le 14 of the 2005 Tax Law, the taxable base for 
turnover tax on imported goods was the declared cust oms value plus the customs duty and the excise 
tax, if applicable, whereas domestically-produced goods circulated in Lao PDR were taxed on the 
basis of the actual sales price, th e actual value of the contract for goods produced under contractual 
arrangements, or the actual price paid by the purch aser for sales on credit.  If applicable, the excise tax 
and fees were also calculated together with the wh olesale factory price, as taxable base for turnover 
tax.  The Tax Law No. 05/NA of 20 Decembe r 2011 superseded the 2005 Tax Law and Edict 
No. 001/OP. 
69. He added that Lao PDR had begun replacing th e turnover tax with a value added tax (VAT) 
following the adoption of the Value Added Tax Law No. 04/NA of 26 December 2006 and its 
implementing Decree No. 270/PMO of 18 September 2009.  VAT was levied at a single rate of 
10 per cent; exports were zero-rated.  Since 1 Jan uary 2010, VAT was initially being applied to 
businesses with annual turnover exceeding KN 400 m illion.  Some 4,500 to 5,000 entities were 
qualified in the initial phase of the introduction of VAT.  Enterprises not required to comply 
immediately with the new VAT system would contin ue to pay turnover tax pursuant to the 2005 Tax 
Law, although any small business wishing to register for VAT would be able to do so.  While appreciating the efforts made by Lao PDR to  convert the turnover tax to a VAT, a Member had 
noted that this bifurcated tax sy stem posed a risk of being discriminatory, and had requested Lao PDR 
to provide information on its plans for a unified taxation system.  In December 2011, Lao PDR 
adopted the 2011 Tax Law No. 05/NA to replace the 2005 Tax Law.  The turnover tax had thus been 
eliminated.  
70. The representative of Lao PDR confirmed that, from the date of accession, all laws, 
regulations and other measures relati ng to internal taxes and charges levied on imports would be in 
full conformity with its WTO obligations, includ ing Article III of the GATT 1994.  The Working 
Party took note of this commitment. 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
71. The representative of Lao PDR said that Lao PDR prohibited the importation of certain types 
of goods considered to pose a serious threat to the national security, public order, health or the 
environment.  The list of prohibited goods presented in document WT/ACC/LAO/5 (Annex II) had 
been revised and simplified.  The most recent listing provided in Notification No. 0973/MoIC.DIMEX "On Prohibited Goods on Import or Export" of 25 May 2011.  
Six product groups were subject to import prohibition (Table 10).  In response to specific questions on WT/ACC/SPEC/LAO/5/Rev.1 
Page 26  
 
  the prohibition of used products, he stated that  used products had been removed from the prohibited 
import list.  They were no longer subject to either import prohibition or import licensing .  
Asked about "exceptional cases" whereby prohibited goods could be imported subject to the approval 
of the Prime Minister's Office, he said that this  referred to, for example,  weapons and ammunition 
imported by the Ministry of National Defence for m ilitary purposes.  To import prohibited products in 
these exceptional cases, the importer first submitted a request to the relevant authority (e.g. the 
Ministry of Public Health), and w ith the endorsement of the relevant  authority obtained approval from 
the Prime Minister's Office. 
72. The representative of Lao PDR said that Lao PDR had been streamlining its import 
procedures with a view to bringing them into  compliance with the WTO Agreement on Import 
Licensing Procedures.  He confirmed that the trade balancing policy and the indicative import plans 
had been abolished in 2007 (Order No. 0453/MOIC .DIMEX of 26 March 2007).  Currently, Decree 
No. 180/PMO "On Import Licensing Procedures" of 7 July 2009 and Decree No. 114/GOL "On Export and Import of Goods" of 6 April 2011 cons tituted the legislative basis for the licensing 
regime.  The Ministry of Industry and Commerce, in consultations with other relevant ministries, was 
responsible for issuing Notifications to specify the goods subject to approval or non-automatic or 
automatic import licensing.  Notification No. 0076/ MOIC.DIMEX "On the List of Goods subject to 
Automatic and Non-automatic Import-Export Licensi ng" of 13 January 2012, provided updated lists 
of products subject to non-automatic import licen sing procedures (Table 11) and automatic import 
licensing procedures (Table 12).  He confirmed that the products listed in Tables 11 and 12 were the 
only goods that required a non-automatic or an au tomatic import licence for importation into Lao 
PDR. 
73. Decree No. 180/PMO set out the import licensing procedures.  The licensing procedures were 
implemented uniformly by the Department of Import and Export, Ministry of Industry and 
Commerce; other relevant Ministries (the Import Licensing Authorities) specified in Tables 11 
and 12; or the Provincial and Vi entiane Capital Industry and Comme rce Offices.  The timeframe for 
processing applications for automatic and non-au tomatic import licenses was ten and 30 working 
days, respectively.  Applications were forwarde d to the relevant Import Licensing Authorities.  
The approval procedures and the agencies involved di ffered depending on the nature of the imported 
product.  Fees charged for obtaining an import licence we re listed in Table 8.  If an application for 
a licence was refused, importers were given the reas on in writing.  In cases where importers were still 
not satisfied with the solutions provided, the impor ters had the right to appeal, as provided for in 
Article 5.9 of Decree No. 180/PMO.  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 27 
 
 
  74. Pursuant to Article 4, 6 and 11 of Decree No. 114/GOL "On Export and Import of Goods" of 
6 April 2011, the Ministry of Industry and Commerc e was responsible for issuing and revising the list 
of goods subject to import and export licensing, in coordination and consulta tion with the relevant 
Ministries that actually issue the licences.  Cons ultation meetings with relevant stakeholders, 
including Ministries and business sectors would be conducted before the list was finalized.  
The participants of these consultations would incl ude representatives from various provincial offices 
and local businessmen.  He added that, as provided for in Decree No. 180/PM and Decree 
No. 363/PM "On Notification and Enquiry of Trad e Related Information", the private sector was 
consulted through their representatives together with  the ministries.  There was a specific timeframe 
to receive comments (within at least 60 days before adoption) and a specific timeframe to publish these lists (at least 180 days prior to publication).  The final list of goods subject to imports and 
exports licensing would be published on the MOIC website and offices of the Import Licensing 
Authorities.   
75. Members requested Lao PDR to modify this  mechanism to fulfil the requirement of 
Article 2.2(b) of the WTO Agreement on Import Licensing Procedures.  In response, the 
representative of Lao PDR stated that the requirements of Article 2.2(b) of the WTO Agreement on 
Import Licensing Procedures were addressed in Article 6 of Decree No. 180/PM "On Import 
Licensing Procedures".  According to Article 6.4 of  Decree No.180/PM, the Ministry of Industry and 
Commerce had to consult with other relevant mini stries to determine the list of goods subject to 
automatic import licensing.  The consultation could be held either annually or extraordinarily, upon 
request of the relevant ministry, to review whet her the list needed to be  adjusted, based on the 
circumstances which gave rise to the introduction of such an import licensing measure.  He added that 
the consideration of such necessity needed to comply with interna tional obligations of Lao PDR as 
required under Article 4 of Decree No. 114/GoL "On Import and Export of Goods" of 6 April 2011.  
Goods which were not prohibited or subject to th e sanitary and phytosanitary measures, technical 
regulations, the automatic or non-automatic import licensing (as listed in Tables 11 and 12) proceeded 
directly to customs clearance without the requirement for any import or export licence. 
76. The representative of Lao PDR noted that  a response to the Questionnaire on Import 
Licensing Procedures was submitted to the Wo rking Party in document WT/ACC/LAO/25.  
The Questionnaire provided further details on the crit eria and procedures to obtain an import licence. 
77. In response to the questions about the lists  of product subject to import licensing, the 
representative of Lao PDR replied that the previous  lists of products subject to import and export 
licensing (0826/MoIC.DIMEX) had been adjusted and replaced by the lists contained in Notification WT/ACC/SPEC/LAO/5/Rev.1 
Page 28  
 
  No. 0076/MOIC.DIMEX.  A number of products, such as rice, timber processing machines, 
refrigerators and ice maker, previously subject to non-automatic licensing, have been moved to the list 
of automatic licensing or have been removed from the list of products subject to import licensing.  
The import of such goods did not require any discre tion from the relevant authority.   He confirmed 
that the adjusted Notification had removed "first-c ome, first-served basis"  as a rule for issuing 
the import licences.   The list of products subject to automatic import licensing was also adjusted.  
Regarding the justification for automatic import licen sing on certain products, he stated that automatic 
licensing were only for statistical and import monito ring purposes.  The information collected helped 
relevant ministries to establish the indicative im port statistics of goods un der their responsibilities, 
which would be considered by the Government in  developing its socio-economic development plan.  
As suggested by Members, HS codes had been adde d in the lists of products subject to import or 
export licensing.  
78. In response to a Member's questions on auto matic licensing, the representative of Lao PDR 
said that, in case a minor error or inadvertency w as identified in the application documentation, the 
application would be issued without further steps from the applicant.  However, if the error or 
inadvertency was significant, then the applicant w ould be requested to make relevant corrections.  
The application for an automatic import licence coul d only be refused on the basis of an omission or 
mistake that was obviously related to a fraudulent in tent or gross negligence.  He explained that 
although it was theoretically possible to immediatel y issue an automatic import licence, the licence 
was normally issued within 10 worki ng days due to administrative constraint.  He confirmed that the 
current legislation (Decree No. 180/PM) set the term  of import licence for one year with a possibility 
to extend for three months from the date  of issuance of such extension.   
79. In response to a Member's questions on n on-automatic licensing, the representative of 
Lao PDR stated that the purpose of non-automatic import licensing was to safeguard the public safety 
and national security, in line with the WTO gene ral exceptions and security exceptions (Article XX 
and XXI of the GATT 1994).  In explaining the "standard criteria" to be met to acquire a 
non-automatic licence, he said that the standard criteria, depending on the types of goods, were 
provided in each specific regulation issued by the re levant Ministry.  Regulations containing standard 
criteria would be submitted to the WTO Secretariat by  July 2012.  The standard criteria applied for 
non-automatic licensing were more restrictive than t hose applied for automatic licensing.  The term of 
extension for non-automatic import licensing are the same as that for automatic licensing.   WT/ACC/SPEC/LAO/5/Rev.1 
 Page 29 
 
 
  80.  [The representative of Lao PDR confirmed that, from the date of accession, Lao PDR's 
import licensing regime would conform to th e provisions of the WTO Agreement on Import 
Licensing Procedures.  The Working Part y took note of this commitment.] 
- Customs valuation 
81. Based on the initial information provided by Lao PDR (document WT/ACC/LAO/3, 
Annex 4), some Members noted that Lao PDR had ac knowledged that its legislation had not been in 
conformity with the WTO Agreement on Impl ementation of Article VII of the GATT 1994 
(Customs Valuation Agreement).  These Members stressed that Lao PDR should focus on establishing 
a valuation system that implemented the hier archy of valuation methods laid down in the 
Customs Valuation Agreement with transaction valu e being the preferred method of appraisement; 
banned the use of valuation methods prohibited accord ing to Article 7 of the Agreement, including 
minimum customs value or arbitrary or fictitious va lues; ensured adequate protection of confidential 
business information; met the transparency and due  process requirements of the Agreement, including 
the means for importers to obtain written informati on on the determination of value and the right of 
appeal; and allowed importers to withdraw their me rchandise against surety or deposit when the final 
determination of customs valu e was being delayed.  Lao PDR should also incorporate the 
Interpretative Notes to the Agreement in  its legislation, as Article 14 of the 
Customs Valuation Agreement stipulated that these not es were an integral part of the Agreement.   
82. In reply, the representative of Lao PDR said that Customs Law No. 05/NA had been adopted 
on 20 May 2005, replacing the 1994 Customs Law, to bring Lao PDR's customs regime into 
conformity with WTO requirements.  Prime Minister's Decree No. 362/PM implementing the 
Customs Law adopted on 19 October 2007 had been  supplemented by Ministerial Instruction 
No. 0491/MOF "On the Implementation of Customs Law and Decree" of 12 March 2009, Ministerial 
Instruction No. 1398/MOF "On Customs Valuation"  of 16 June 2010 and Instruction No. 2401/CD 
"On Customs Valuation for Imported Goods" of 29 September 2010.  He stated that Article 13 of the 
2005 Customs Law and Article 4 of the Decree No. 362/ PM established the hierarchy of the valuation 
methodologies in line with the Customs Valuation Agre ement.  The right of appeal was provided for 
in Article 29 of the Law and Article 9 of the Decr ee No. 362/PM.  In 2011, Lao PDR had commenced 
a review of the Customs Law and re levant implementing regulations w ith a view to incorporating all 
provisions of the Customs Valuation Agreement, including the Interpretative Notes.  The Customs 
Law No. 4/NA of 20 December 2011 had been promulgated to replace the Customs Law 2005.  Article 13 of the Customs Law 2011 reconfirmed th at Lao PDR's customs valuation regime would 
fully comply with the Customs Valuation Agreem ent.  Ministerial Instruction No. 1537/MOF was WT/ACC/SPEC/LAO/5/Rev.1 
Page 30  
 
  adopted on 4 June 2012 to replace Instruction No. 1398/MOF.  Another Instruction would be adopted 
by June 2012 to supersede Instruction No. 24 01/CD.  He provided an Action Plan in document 
WT/ACC/LAO/12 and its Revisions, outlining the step s undertaken and the objectives, timelines and 
technical assistance and training needs foreseen to implement the Customs Valuation Agreement 
gradually.  According to the latest revision of  the Action Plan, Lao PDR would bring its legal 
framework on Customs Valuation into complianc e with the Customs Valuation Agreement by 
December 2012.  Full implementation of the Agreement would be achieved upon accession.  
83. The representative of Lao PDR said that fu ll implementation of the Customs Valuation 
Agreement was a significant challenge to Lao PD R in terms of techni cal, organizational and 
institutional aspects.  Among the difficulties Lao PD R was facing, he highlighted the lack of proper 
accounting and record keeping practices among importers, the low rate of voluntary compliance with 
existing rules, and the limited capacity of the custom s administration to enforce valuation provisions.  
He noted that Lao PDR needed technical assistance on international best practices and provision of 
physical infrastructure in the establishment of the customs value database, trainings to equip 
Lao Customs with analytical skills in assessing the value of goods. 
84. The representative of Lao PDR said that the Cu stoms Department at th e Ministry of Finance 
had previously applied minimum values to a larg e number of products to provide consistency of 
treatment and to deter fraud.  To mitigate the impact to customs revenue, the introduction of the 
transaction value method and the elimination of th e minimum values had been undertaken gradually 
according to an action plan.  Transaction value (and the other valuation methods) had first been applied, 
at the end of 2010, to imports by large multin ational and Lao companie s with "good" compliance 
records, international organizations, and goods  imported for Governme nt projects and under 
Free Trade Agreements (Notification No. 1940/CD of 21 July 2010).  Alt hough there was no accurate 
statistics, the transaction value had been applied to the imports from ASEAN and other countries with 
which Lao PDR had conclude d FTAs, which account for the majority of Lao PDR's trade.  By the end 
of 2012, the valuation provisions of the Agreem ent would be applied to most imports.   
85. A Member expressed concern about  Lao PDR's reliance on price databases, recalling that the 
World Customs Organization had issued guidelines restri cting the use of such databases.  The databases 
were not to be used to determine the customs value for imported goods, to establish substitute values, or 
as a mechanism to establish minimum values.  Lao PDR should focus on establishing a risk management system that would allow it to use the transa ction value to the greatest extent possible, rather 
than devoting scarce resources to a transitory syst em.  Lao PDR was also asked to confirm that any 
value database developed would to be used exclusively as a risk assessment tool.     WT/ACC/SPEC/LAO/5/Rev.1 
 Page 31 
 
 
  86. In reply, the representative of Lao PDR noted that Lao PDR was requesting a transitional period 
to implement the Customs Valuation Agreement.  Th e use of reference price lists or minimum values 
was being phased out.  The number of products subj ect to reference prices had been substantially 
reduced from 2,000 tariff lines (HS 8 digits) in 2009 to  800 tariff lines in 2010.  In 2011, the reference 
prices for most general goods and luxury goods (liquor , beer and wine) were eliminated.  For 2012, the 
reference price was only applied to the following six ve hicles and fuel products: sedan; pick-up; minibus 
with 16 seats and lower; jeep; gasolin e; and diesel.  The reference price for vehicles would be eliminated 
by 31 December 2012 (Regulation No. 2326/LCD of 9 August 2011) and for fuel upon WTO accession.  
A risk management system might need to be intr oduced once the new system had been established to 
address fraud and under-invoicing by importers.  He confirmed that th e value reference database being 
developed would be used exclusivel y as a risk assessment tool.   
87. Having reviewed Lao PDR's legislation on cust oms valuation, Members noted that certain 
provisions of the WTO Customs Valuation Agreemen t had not been adequately incorporated into 
relevant laws and regulations, notab ly, Article 1.2(a), Article 1.2(c), Article 2.1(a), Article 2.3 Article 
3.3, Article 6, Article 7, Articles 10-13, Articl es 15.2(c), (d), (e) and Article 15.5, Article 16, 
the principles set-out in the General Introductory  Commentary and the Interpretative Notes.  In 
response, the representative of Lao PDR noted that some of these Articles had already been reflected 
in Instruction No. 2401/CD "On Customs Valua tion for Imported Goods" of 29 September 2010.  
He added that Lao PDR was in the process to amen d Instruction No. 2401/CD to fully comply with 
the WTO Customs Valuation Agreement and to in corporate all Articles questioned by Members, 
including the Interpretative Notes.  
88.  The representative of Lao PDR confirmed th at, from the date of accession, Lao PDR would 
fully apply the WTO provisions concerning customs valuation, including the WTO Agreement on the Implementation of Article VII of the GATT 1994 a nd Annex I (Interpretative Notes).  Lao PDR 
would ensure that any customs valuation method to  be applied would be in accordance with these 
WTO rules.  In this regard, he confirmed that refe rence prices and fixed valu ation schedule applied to 
imports in lieu of the transaction value to determin e customs valuation will be eliminated by accession 
and would not be reintroduced and that all methods of valuation used and the hierarchy  would be in 
strict conformity with those provided for in th e WTO Customs Valuation Agreement.  The Working 
Party took note of these commitments. WT/ACC/SPEC/LAO/5/Rev.1 
Page 32  
 
  - Rules of origin 
89. The representative of Lao PDR said that Lao PD R did not require certification of origin for 
non-preferential imports.  A certif icate of origin was required for pr eferential access to the Lao PDR 
market under free trade agreements, including the ASEAN Trade in Goods Agreement (ATIGA) and the 
Asia-Pacific Trade Agreement.  The customs officials in the Ministry of Finance and at the borders were responsible for administerin g the requirement.  The Department of Import and Export at the Ministry of 
Industry and Commerce and provincial industry and co mmerce offices certified Lao exports under the  
main preferential schemes, including to the markets covered by the ASEAN Trade in Goods Agreement (ATIGA) and ASEAN-India Free Trade Area, while th e Chamber of Commerce and Industry issued the 
certificates for non-preferen tial exports and preferential exports unde r the other six pref erential schemes 
(four reciprocal schemes under ASEAN FTAs : ASEAN-ANZ, ASEAN-Ch ina, ASEAN-Japan, 
ASEAN-Korea, and two unilateral schemes with China and Korea).  The fees for issuing the certificate 
of origin ranged from KN 40,000 to KN 100,000. 
90. Asked to clarify whether Customs Law No. 05/NA implied that Lao PDR would not accept a 
declaration of origin unless the good was shipped di rectly to Lao PDR from the declared country of 
origin, the representative of Lao PDR said that Ar ticle 11 of the Customs Law No. 05/NA had been 
amended in the Customs Law No. 04/NA adopted on 20 December 2011.  He further confirmed that 
Lao PDR accepted declarations of origin of goods, regardless of whether they were shipped from their 
country of origin.  As defined in Article 2 of Decree No. 228/PM "On the Origin of Imported and 
Exported Goods" of 22 April 2010, the origin of goods was the place where goods were produced or 
undergone production process.  The administrati on and the role of bodies responsible for 
administering the origin of goods were elaborated in Articles 16 and 19 of Decree No. 228/PMO.  In response to a specific question, he said that the term "simple assembly of parts" referred to the 
manufacturing or processing operations that were deem ed basic and not taken into consideration when 
determining the origin of goods.  Importers had the right to appeal decisions on the origin of goods. 
91. Responding to queries on how Lao PDR applied, or would implement, the requirements of 
Article 2(h) and paragraph 3(d) of Annex II of the WTO Agreement on Rules of Origin regarding 
prior and binding assessments of origin, the represen tative of Lao PDR said that Decree No. 228/PMO 
incorporated the provisions of the WTO Agreemen t on Rules of Origin, including Article 2(h) and 
paragraph 3(d) of Annex II.   
92. The representative of Lao PDR confirmed that certificates of origin would be required for 
preferential purposes only, and would not be neces sary for MFN treatment.  The representative of 
Lao PDR confirmed that, from the date of accession, Lao PDR's preferential and non-preferential  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 33 
 
 
  rules of origin would comply fully with the WTO Agreement on Rules of Origin, including the 
requirements of Article 2(h) and Annex II, paragra ph 3(d) of the Agreement, which require provision 
of an assessment of the origin of the import upon th e request of an exporter, importer or any person 
with a justifiable cause.  An assessment shall be i ssued as soon as possible, but no later than 150 days 
after the request for such an assessment, provided th at all necessary elements have been submitted.  
Any such assessment would remain valid for three years.  The Working Party took note of these 
commitments. 
- Other customs formalities 
93. A Member noted that Lao PDR had listed "consul ar fees overseas" in its Memorandum on the 
Foreign Trade Regime and asked whether this mean t that Lao PDR required authentication of import 
documentation by consular officials or other institutions  in the country of export and, if so, what fees 
were applied to such authentications.  The represen tative of Lao PDR replied that this measure was 
abolished on 1 May 2002.   
94. The representative of Lao PDR confirmed that La o PDR did not require consular certification 
or notarization of documents by consular officials in the country of export to be provided to customs 
officials at the time of importation into Lao PDR,  and would not require consular certification or 
notarization in the future.  The Working Pa rty took note of this commitment.   
- Pre-shipment inspection 
95. The representative of Lao PDR said that Lao PD R did not require mandatory pre-shipment 
inspection.  He confirmed, however, that due to valuation problems in border trade, plans had been 
put forward to create a joint-venture inspection comp any (Société Mixte d'Inspection Lao) to combat 
under-valuations and reinforce the collection of tax es.  The company was to have been established 
within three years of signature of the contract of in tention.  This had not been achieved, and all plans 
for pre-shipment inspection had s ubsequently been scrapped.   
96. The representative of Lao PDR confirmed that if preshipment inspection requirements were 
introduced, they would be temporary and in conform ity with the requirements of the WTO Agreement 
on Preshipment Inspection and other WTO agreements .  He further confirmed that Lao PDR would 
ensure that such enterprises operating on its beha lf complied with the provisions of WTO agreements 
including the Agreements on Technical Barriers to Trade, the Application of Sanitary and 
Phytosanitary Measures, Import Licensing Procedures,  the Implementation of Article VII, Rules of 
Origin, the Implementation of Article VI (Antid umping), Subsidies and Countervailing Measures, WT/ACC/SPEC/LAO/5/Rev.1 
Page 34  
 
  Safeguards, and Agriculture.  To this end, the estab lishment of charges and fees would be consistent 
with Article VIII of the GATT 1994 and Lao PDR woul d ensure that the due process and transparency 
requirements of the WTO Agreements, in particular  Article X of the GATT 1994, would be applied.  
He also confirmed that decisions by such firms c ould be appealed by importers in the same way as 
administrative decisions taken by the Government of  Lao PDR.  The Working Party took note of these 
commitments. 
- Anti-dumping, countervailing duties, safeguard regimes 
97. The representative of Lao PDR said that Lao PDR had no legisla tion authorizing the 
application of anti-dumping, countervailing, or safe guard measures at present, but would not exclude 
the possibility that such legislation could be implem ented in the future.  With respect to safeguard 
measures, the representative of Lao PDR noted that  his Government was in the process of drafting 
legislation but required a transition period of up to five years after its accession to the WTO to enact 
and notify safeguard legislation to the WTO that wa s in conformity with the provisions of the WTO 
Agreement on Safeguards.  During th is period, Lao PDR would be able  to impose safeguard measures 
to address serious injury or the threat of such inju ry with respect to a specific list of 63 tariff lines (HS 
8-digit) in Table 13, which were being imported into  its territory in increased  quantities, absolute or 
relative to domestic production.  Lao PDR explaine d that, during the transition period and despite the 
lack of previously established procedures as re quired by Article 3.1 of the WTO Agreement on 
Safeguards, Lao PDR would generally  only take action in conformity with the provisions of the WTO 
Agreement on Safeguards, in particular with respec t to the need to conduct an investigation which 
allowed for all interested parti es to present their views and evidence, and notification to the WTO 
upon initiating an investigatory process, prior to impos ing a measure.  He also confirmed that his 
Government would not apply any anti-dumping or  countervailing measures until it had notified and 
implemented appropriate laws in  conformity with the provisions of the WTO Agreements on the 
Implementation of Article VI of the GATT 1994,  and on Subsidies and Countervailing Measures. 
B. EXPORT REGULATIONS 
- Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports 
98. The representative of Lao PDR said that pursuant to Edict No. 002/OP "On Export Duties" of 
27 April 2012, all products currently subject to expor t duties are enumerated in Table 14.  He added 
that the export duties on sawn wood and logs had been  abolished and a stumpage fee was collected on 
all logs, whether for domestic consumption or for export.  Export duties were collected for revenue  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 35 
 
 
  purposes contributing, on average, about KN 43 billi on per year to the exchequer (equivalent to 
1 per cent of total Government revenues).  Lao PDR had no plans, at present, to phase out the 
remaining duties.  Exports were exempt from the app lication of internal taxes.  The requirements and 
procedures for business entities wishing to engage in exportation were the same as those applicable to 
importation.   
99. Asked to commit not to introduce export duti es on products not included in the previous 
Table 13 of document WT/ACC/SPEC/LAO/5, th e representative of Lao PDR reiterated the 
importance of export duties to government revenue and the need to maintain this measure for 
development purposes.  Lao PDR intended to apply e xport duties to a limited number of products.  He 
took note of Members' suggestion of applying altern ative measures that could foster the production of 
those domestic products subject to export duties.  However, he stated that Lao PDR had limited 
possibilities to foster value-added production and/or  revenue sources.  He added that Lao PDR would 
comply with GATT 1994 and WTO provisions with regard to export duties.   
- Export restrictions 
100. The representative of Lao PDR said that most goods exported from Lao PDR were not subject 
to any licensing arrangements or restrictions.  Fo r goods subject to export prohibition or licensing, 
Decree No. 114/GOL "On Export and Import of Goods " of 6 April 2011 provided the legal basis for 
the controls, and the specific goods subject to e xport prohibition and licensing were described in 
Notifications of the Ministry of Industry and Commerce.  The most recent list of goods subject to 
export prohibition contained in Notification No. 0973/MoIC.DIMEX "On Prohibited Goods on 
Import or Export" of 25 May 2011 (Table 15).  G oods subject to non-automatic and automatic export 
licensing were listed in Notification No. 0076/MOIC .DIMEX "On the List of Goods subject to 
Automatic and Non-automatic Import-Export Licensi ng" of 13 January 2012 (Tables 16 and 17).  
The export restrictions were applied to protect nati onal security; public order; human, animal or plant 
life and health; articles of artistic, historic and archae ological value; or to cons erve exhaustib le natural 
resources and were, in his view, in conformity  with Articles XX and XXI of the GATT 1994.  
According to Decree No. 114/GOL "On Import and Export of Goods" of 6 April 2011, the licensing procedures set out in Decree No. 180/PM "On Import Licensing Procedures" of 7 July 2009 were also 
applicable to export licensing.  
101. Some Members requested further details on the banning of log exports (and other forestry 
products) and the export licensing arrangements for mi ning and forestry products, in particular the 
policy objectives being served by these licences, whet her the goal was to limit exportation for the 
conservation of these resources or to pursue some  other purpose, and what WTO justifications WT/ACC/SPEC/LAO/5/Rev.1 
Page 36  
 
  Lao PDR would forward for preserving these licences.  Lao PDR was requested to provide 
information on comparable restrictions applicab le domestically to conserve forests.   
102. In response, the representative of Lao PDR sa id that mines and forests were exhaustible 
natural resources requiring conservation.  The expl oitation of natural forest was in principle 
forbidden.  A ban on the exploitation of logs and ot her forestry products from natural forests had been 
in place.  Therefore, he considered that the export restrictions on logs and other forestry products from 
natural forests could be justifie d under Article XX(g) of the GATT 1994.  He added that the previous 
export prohibition on logs and othe r forestry products had been terminated and replaced by export 
licensing regime (see Notification No. 0076/MOIC.DIMEX). 
- Export subsidies 
103. The representative of Lao PDR said that the Ministry of Industry and Commerce was 
responsible for export promotion activities.  The Ministry, in collaboration with the Lao National 
Chamber of Commerce and Industry and business asso ciations and groups, promoted Lao products at 
home and abroad.   
104. Some Members noted that Lao PDR was reserving its rights to special and differential 
treatment as an LDC under Article 27 of the WTO Agreement on Subsidies and Countervailing 
Measures (ASCM), and that Lao PDR appeared to  have included incentives contingent on export 
performance within the meaning of Article 3.1( a) of the ASCM in its Law No. 10/NA "On the 
Promotion of Domestic Investment" (Articles 9 and 11); Law No. 11/NA "On the Promotion of 
Foreign Investment" (Articles 16 and 18); and implementing Decree Nos. 300/PM and 301/PM 
(Article 15 and Annex 2).  As Ar ticle 25 of the ASCM obliged WTO Members to notify all subsidies, 
including prohibited subsidies contingent upon e xport or the use of domestic over imported goods, 
Lao PDR was requested to submit such a docum ent to the Working Party for review.   
105. In reply, the representative of Lao PDR su bmitted a draft notification for the period 
2008 to 2010 in document WT/ACC/LAO/19.  Inform ation was provided on subsidies, prohibited or 
otherwise.  The notification included particulars of the incentives contingent upon export performance 
requirements in the domestic and foreign invest ment legislation (Law Nos. 10/NA and 11/NA, 
Decree Nos. 300/PM and 301/PM); and in the bor der trade zones and special economic zone 
(Decree Nos. 25/PM, 162/PM and 177/PM - see section on "Free zones").  As an LDC, he reiterated 
that Lao PDR reserved its right to avail of the flexibilities in the ASCM on the use of export 
performance requirements.  The existing export perf ormance (and local content) requirements in the  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 37 
 
 
  investment regime, however, had been eliminated  and replaced by incentives provided pursuant to 
Law No. 02/NA "On Investment Promotion" of 8 July 2009. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
106. The representative of Lao PDR said that Lao PDR had formulated an Industry-Handicraft 
Development Plan for the period 1996 to 2005 covering the manufacturing industry, cottage and 
handicraft industries, power generation, mini ng, agro-processing industries, textiles and the 
production of construction materials.   Encouragement of key industri es and exports were priorities in 
the Seventh Five-Year Development Plan for the period 2011 to 2015.  The share of the 
manufacturing sector as a percentage of the GDP had increased from 14.4 per cent in 1990 to 29.2 per cent in 2005.  The manufacturing industry, in particular food processing, was the primary 
source of employment, and about 92 per cent of the industrial workforce was employed in factories 
with less than ten employees.  The principa l challenges for Lao PDR' s continued industrial 
development were import competition in the case of ha ndicrafts, inadequate infrastructure to attract 
new industries, a shortage of techni cal and entrepreneurial skills, and th e lack of electricity outside the 
main population centres.  Lao PDR was looking fo r domestic and foreign capital to improve the 
production technology and working methods, and to im prove the infrastructure in rural areas with the 
available labour force.  Prime Minister Decree No. 443/PM "On Specific and Special Economic Zone 
in Lao PDR" was adopted on 26 October 2010.  The Decree further elaborated the provisions of 
Article 59 of Law No. 02/NA "On Investment Promo tion" and stipulated principles, regulations, 
establishment, operation and other policies rega rding specific and special economic zones in 
Lao PDR. 
107. In response to specific questions concerning the mining sector and power generation, the 
representative of Lao PDR said that Lao PDR sought to  develop a favourable legal system for mineral 
prospecting and exploration and to promote foreign investment in mining.  The Mining Law had been 
revised in 2008 to create a more enabling environmen t for investment in this area.  Key amendments 
included streamlining the licensing procedures and delineating the responsibilities of the central and 
local authorities regulating the mining sector.  Lao PDR did not have a specific national energy plan, 
but had devised a strategy to develop the electricity  sector, including a target to extend the electricity 
grid to 90 per cent of the households by 2020.  For the time being, much of the electricity was being exported.  Electricity production had doubled in 1998 when a new hydro power station had come on 
stream.  In 2007, Lao PDR had gene rated electricity totalling 3,374 m illion kWh, of which net exports 
had amounted to 2,230 million kWh.  Lao PDR had a considerable untapped hydropower potential.  WT/ACC/SPEC/LAO/5/Rev.1 
Page 38  
 
  The Law on Electricity, which was revised and adopt ed by the National Assembly in December 2011, 
stated that the sector sought to increase foreign i nvestment in production, distribution, exportation, 
importation and the development of this sector.  He  added that Lao PDR currently had no specific 
plan for foreign investment in the energy sector.  
108. Some Members noted that certain provisions of Lao PDR's laws appeared to provide 
incentives contingent upon the use of domestic over imported goods within the meaning of 
Article 3.1(b) of the ASCM, namely Law No. 10/NA "On the Promotion of Domestic Investment" 
(Articles 9 and 11); Law No. 11/NA "On the Prom otion of Foreign Investment" (Article 18); 
Decree No. 300/PM "Regarding the Implementation of the Law on the Promotion of Domestic 
Investment"; Decree No. 301/PM "Regarding the Im plementation of the Law on the Promotion of 
Foreign Investment" (Article 34 and Annex 2); and the legislation on the special economic and border 
trade zones (Decree Nos. 25/PM, 162/PM and 177 /PM - see section on "Free zones").  Lao PDR was 
invited to use the format of document G/SCM/6/Rev.1 to provide a subsidy notification.  Lao PDR was requested to (i) identify clearly the subsidies contingent on the use of domestic over 
imported goods in the manufacturing process for whic h it would seek a transition period; (ii) provide 
an action plan to the Working Party with a date cer tain for the elimination of such subsidies; and 
(iii) commit to comply with the obligation unde r Article 25 of the ASCM, as a WTO Member, to 
notify all subsidies, including prohibited subsidies co ntingent upon export or the use of domestic over 
imported goods.  Some Members stressed that LD Cs were exempted from the prohibition of export 
subsidies, but not from the prohibition of local c ontent subsides, and Lao PDR should therefore, in 
their opinion, commit to eliminate all local c ontent requirements by the date of accession.   
109. In response, the representative of Lao PDR presented a draft subsidy notification for the 
period 2008 to 2010 in document WT/ACC/LAO/19.  The notification identified the tax and duty exemptions provided by Lao PDR in its investment , special and border trade zones legislation.  
In terms of form of subsidy, the notification distinguished between measures falling within and 
outside the scope of Article 3.1 (a) and (b) of the ASCM.  He added that Lao PDR was taking steps to 
eliminate provisions requiring the use of domestic over imported goods.  His Government had set up a 
Committee under the Prime Minister's Office to pr opose alternative measures to promote Lao PDR's 
industrial policy.  In light of these efforts, the new Law No. 02/NA "On Investment Promotion" of 
8 July 2009 had eliminated incentives based on lo cal content requirements in Lao's investment 
legislation.  The new Decree No. 443/PM "O n Specific and Special Economic Zone" of 
26 October 2010 provided for an exhaustive list of in centives available in those zones, which, in his 
view, were in compliance with the ASCM.  Decree No. 162/PM "On Border Trade Zone at Boten, 
Louangnamtha Province" had been terminated.  He added that the local content requirement in the  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 39 
 
 
  remaining zones Savan-Seno Special Economic Zo ne (Decree No. 177/PM) and Dansavanh Village 
Border Trade Zone (Decree No. 25/PM) had been eliminated through Decree No. 154/PM of 
5 March 2012.  In response to a specific question on  Article 99 of the new Investment Promotion Law 
No. 02/NA, he said that upon entry into forces of th e new law, investors covered by the previous 
investment law could choose between receiving benefits granted by the new or old incentive programmes.  However, even when the old incen tive programme was chosen, companies were no 
longer required to comply with the local content requirement.  He added that as the local content 
requirement had actually never been enforced, the government did not have fu rther information on the 
total number of companies that benefitted from th e old programmes.  He confirmed that no local 
content requirements were currently imposed and no residual benefits in the nature of prohibited 
subsides would continue.  In response to a specifi c question, he reconfirmed that Lao PDR did not 
grandfather any continuing benefits contingent upon local content requirements, which had been 
eliminated by Decree No. 154/PM, withou t providing any replacement measures.  
110. A Member also noted that Lao PDR's legisl ation provided for subsidies contingent upon 
exportation, namely Law No. 10/NA "On the Promo tion of Domestic Investment"; Law No. 11/NA 
"On the Promotion of Foreign Investment"; Decr ee No. 300/PM "Regarding the Implementation of 
the Law on the Promotion of Domestic I nvestment"; Decree No. 301/PM "Regarding the 
Implementation of the Law on the Promotion of Foreign Investment"; and Decree No. 177/PM 
"On the Management Regulations and Incentiv e Policies Regarding the Savan-Seno Special 
Economic Zone".  "Production for export" was also listed as one type of promoted investment in 
Article 23 of Decree No. 443/PM "On Specific and Special Economic Zone in Lao PDR".  In this 
Member's view, Lao PDR was not in compliance wi th the ASCM with respect to export subsidies 
given that Lao PDR continued to gr ant export subsidies.  In response, Lao PDR reiterated that, as a 
landlocked LDC, it sought to avail itself to the right s and flexibilities as provided for LDCs in Article 
27.2 of the ASCM to use export performance requirements. 
111. [The representative of Lao PDR confirmed that Law No. 10/NA and Law No. 11/NA that 
provided investment incentives contingent upon ex portation and the use of domestic over imported 
goods for domestic and foreign-invested enterprises we re no longer valid and that prohibited subsidies 
would not be provided to new beneficiaries under these two laws.  He further confirmed that the 
benefits to current beneficiaries under these two la ws would terminate at the end of the relevant 
eligibility periods, but no later than [two] years fro m the date of Lao PDR's accession to the WTO.  
The Representative of Lao PDR also confir med that Decree No. 154/PM, of 5 March 2012, 
concerning "Cancellation of Local Content Requireme nts set out in Previous Legislation" cancelled 
all local content requirements contained in the Decree on Densavanh Village Border Trade Zone WT/ACC/SPEC/LAO/5/Rev.1 
Page 40  
 
  No.25/PM, dated 25 March 2002; the Decree on th e Regulation and Investment Incentive for the 
Savan-Seno Special Economic Zone No. 177/PM , dated 13 November 2003; the Decree on 
Implementation of the Law on the Promotion of Do mestic Investment No. 300/PM, dated 12 October 
2005; and the Decree on Implementation of the Law on the Promotion of Foreign Investment No. 
301/PM, dated 12 October 2005, and that no residual be nefits in the form of  prohibited subsidies 
continued under the cited legisla tion.  Furthermore, the represen tative of Lao PDR confirmed that 
upon accession no new benefits under Decree 443 or unde r 177/PM would be provided that were 
contingent upon export performance , whether solely or as one of several conditions.  He further 
confirmed that the benefits to current beneficiarie s under these two laws would terminate at the end of 
the relevant eligibility pe riods.  The representative of Lao PDR also confirmed that, except as noted 
above, as of the date accession to the WTO, Lao PD R would administer all of its existing subsidy 
programmes in full conformity with the WTO Ag reement on Subsidies and Countervailing Measures, 
including Article 3 of the Subsidies Agreement a nd that, by the date of accession, Lao PDR would 
provide a subsidy notification (including any resi dual benefits from terminated programmes), in 
accordance with Article 25 of the Agreement, to the Committee on Subsidies and Countervailing 
Measures.  The Working Party took note of these commitments.] 
[The representative of Lao PDR also confirmed that as of the date of accession to the WTO, Lao PDR 
would administer all of its existing subsidy prog rammes in full conformity with the WTO Agreement 
on Subsidies and Countervailing Measures, including Article 27.2 of the Agreement on Subsidies and 
Countervailing Measures and that, upon the date of accession, Lao PDR would provide a subsidy 
notification, in accordance with Article 25 of the Agreement, to the Committee on Subsidies and 
Countervailing Measures.  The Working Party took note of these commitments.]    
- Technical barriers to trade,  standards and certification 
112. The representative of Lao PDR said that the new Standardization Law No. 13/NA of 
26 December 2007, which replaced the Decree of th e Prime Minister No. 85/PM "On Management of 
Standards and Quality of Produc ts and Goods" of 2 November 1995, constituted the basic legal 
framework for Lao PDR's present system of sta ndards, technical regulations and conformity 
assessment.  Amongst the relevant regulations in this  area he pointed to the Regulation No. 08/MOH 
of 4 January 2005 (e.g. food additives such as acetic  acid and caffeine being subject to surveillance); 
Regulation No. 586/MOH "On the Control on  Production, Export-Imported Safe Food" 
of 12 May 2006; Regulation No. 518/MOH "On the Basic Principles in the Application of Sanitary and Technical Measures for the Food Safety  Management" of 18 March 2009; Regulation 
No. 1226/PMO-NAST "On Quality Inspection of G oods" of 17 July 2009; Regulation No. 519  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 41 
 
 
  "On Labelling of Pre-packaged Food" of 18 March 2009; Regulation No. 336/NSC NAST 
"On Organization and Activities of Centra l Technical Committee" of 22 October 2010;  and Decision 
No. 235/PMO-NAST "On the Organization and Activ ities of the National Standards Council" of 
3 February 2010.  Law No. 07/NA "On Metrolog y" was adopted by the National Assembly on 
20 December 2010.  
113. He provided a checklist of illustrative TBT issues in document WT/ACC/LAO/6 and 
its Revisions; and an action plan for the impl ementation of the WTO Agreement on Technical 
Barriers to Trade (TBT Agreement) in documen t WT/ACC/LAO/14 and its Revisions (Table 18).  
According to the timelines set out in the Action Plan, Lao PDR had completed the re-assessment of 
the institutional, legal and regulatory framework in June 2011.  Suggestions had been made on how to 
ensure the compliance of the technical regulations, standards and conformity assessment procedures 
with regional and international obligations.  The Implementation of the Law on Standardization and 
the preparatory work for the TBT Enquiry Points ha d been identified as the key actions.  Decree No. 
234/GOL "On the Implementation of the Law on Standardization" and Decree No. 363/PM 
"On Notification and Enquiry of Trade Related In formation" had been adopted on 6 June 2012 and 
19 August 2010 respectively.  The notification unit and Enquiry points would be operational upon 
accession.  The re-assessment had also identified shortcomings of existing institutional set-up and 
capacity constraints.  These defici encies were the main reason for Lao PDR to request the transition 
period and technical assistance.  With technical assistance being provided and additional assistance 
being sought, Lao PDR would ensure that its lega l framework on technical re gulations, standards and 
conformity assessment was in compliance with th e TBT Agreement by 31 December 2012.  The 
representative of Lao PDR envisaged full implementation of the TBT Agreement by 31 December 2014.  
Table 18:  Action Plan for the Implementation of the WTO TBT Agreement 
Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
1. TBT related 
activities Reassessment of the Institutional, 
Legal and Regulatory Framework for TBT. Completed in 
June 2011 TA received from Trade 
Development Facility (TDF). 
2. Institutional 
strengthening activities Medium to Long-Term Institutional 
Development Strategy for Quality Infrastructure. Initial draft 
completed and being in consultation process before submission to the government by the end of 2012 and adopted by February 2013 TA received from TDF and 
USAID. WT/ACC/SPEC/LAO/5/Rev.1 
Page 42  
 
  Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
Decision on the Organization and Activities of the National Standards Council, No. 235/PMO-NAST, dated 3 February 2010. Adopted in 
February 2010  
Regulation on Organization and 
Activities of Central Technical Committee, No. 336/NSC NAST, dated 22 October 2010. Adopted in 
October 2010  
3. Technical 
regulations Law on Standardization, No. 13/NA, 
dated 26 December 2007. Adopted in 
December 2007 TA received from EU and 
UNIDO (ended in 2008). 
Decree implementing the Law on Standardization. Adopted on 6 June 
2012 Recommendations received 
from USAID and TDF. 
Regulation on Quality Inspection of Goods, No. 1226/PMO-NAST, dated 17 July 2009. Adopted in July 
2009  
Regulation on Basic Principles in 
Application of Sanitary and Technical Measures in Food Safety Management in accordance with the SPS Agreement, No. 518/MoH, dated 18 March 2009. Adopted in March 
2009 Recommendations received 
from FAO and WHO.  TA received from TDF for publication, dissemination and training for all stakeholders. 
Regulation on Labelling of Pre-Packaged Food, No. 519/MoH, dated 18 March 2009. Adopted in March 
2009 TA received from WHO on 
drafting. 
Code of Practice for Technical Regulations. To be drafted by 
June 2012 and adoption expected in October 2012 TA received from USAID. 
Decision on Food Inspection no. 297 
/MOH, dated 24 February 2012 (formerly referred to as Regulation on Food Control System). Adopted in 
February 2012 TA received from TDF, 
FAO legal expert has been employed for finalizing the regulation. 
4. Standards Law on Standardization, No. 13/NA, 
dated 26 December 2007. Adopted in 
December 2007 TA received from EU and 
UNIDO (ended 2008). 
Decree implementing the Law on Standardization. Draft was approved 
by the government in April and expected to be issued by mid-June 2012 Recommendations received 
from USAID and TDF. 
Regulation on the Use of Standard Mark for Lao Products, No. 1718/ PMO-NAST, dated 7 August 2006. Adopted in August 
2006 TA received from EU and 
UNIDO. 
5. Conformity 
Assessment Law on Standardization No. 13/NA 
dated 26 December 2007. Adopted in 2007 TA received from EU and 
UNIDO (ended in 2008). 
Decree implementing the Law on Standardization. Adopted on 6 June 
2012 TA and recommendations 
received from USAID and TDF. 
Law on Metrology, No. 07/NA, dated 20 December 2010. Adopted in 
December 2010 Technical review by 
UNIDO Experts. 
Lao PDR joined MRA under ASEAN for Electrical and Electronic Equipment.  5 April 2002  
Establishment of testing facilities for 
construction materials, textiles and chemicals. Deferred TA to be requested.  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 43 
 
 
  Issues Actions Implementation 
Timeframe Technical Assistance (TA) 
Provided/Sought 
6. Information 
Procedures Decree on Notification and Enquiry of 
Trade Related Information, No. 363/PM, dated19 August 2010. Adopted in August 
2010 TA received from EU on 
drafting and received from USAID and ADB for implementation. 
Establishment of TBT Enquiry Point under Decree on Notification and Enquiry of Trade Related Information No. 363/PM dated 19 August 2010.  Decision on TBT Enquiry Point, No. 1199/ PMO-NAST, dated 22 June 2011 was adopted to strengthen coordination among notification unit, enquiry points and relevant authorities.  Address of TBT Enquiry Point:   Department of Standardization and 
Metrology, Ministry of Science and 
Technology;  PO Box 2279, Vientiane Capital, Lao PDR. Tel/Fax:  85621-243405 Email: enquiries@laostbt.gov.la  (To be fully operational upon accession) Operational upon 
accession    Adopted in June 2011     Responsible staff have been 
assigned; Webpage 
has been developed under Trade Portal website; Training and study visit for responsible staff are requested from USAID TA received from USAID 
and ADB for implementation.   TA received from USAID. 
Establishment of SPS and TBT Notification Unit under Decree on 
Notification and Enquiry of Trade 
Related Information No. 363/PM dated 19 August 2010.  Decision on SPS and TBT Notification Unit, No. 0471/MOIC, dated 9 March 2011.  Address of SPS and TBT Notification Unit:   Foreign Trade Policy Department, Ministry of Industry and Commerce.  P.O. Box 4107, Phonexay Road, Vientiane Capital, 
Lao PDR 
Tel: 85621-450065 Fax: 85621-450066  Website: www.laoftpd.com   Operational upon 
accession 
 
   Adopted in March 2011 TA received from USAID 
and ADB for 
implementation, e.g. 
establishment of database, training of relevant staff on the SPS and TBT Agreements including through exchange experiences and study visits. 
 
 
114. The representative of Lao PDR said that Lao PDR had become a signatory to the ASEAN 
Consultative Committee on Standards and Quality (ACCS Q) in 1998, and had joined the International 
Organization for Standardization (ISO) in January 2007.  Lao PDR had become a signatory to the 
IEC-APRC Affiliate Country Programme in 2002 a nd was a member of the Asia Pacific Legal 
Metrology Forum (APLMF).  The development of st andards and technical regulations followed the 
ACCSQ principles as stipulated in his Government's National Master Plan No. 1352/PM.DS of WT/ACC/SPEC/LAO/5/Rev.1 
Page 44  
 
  11 August 2000 for the "Development of Standard s and Conformity Assessment in Lao PDR".  
Standards and technical regulations  were developed in consultation with the principal governmental 
stakeholders and the private sector, and - for st andards - work was also being pursued through the 
ACCSQ based on ISO/IEC guidelines.  As a signatory , his Government abided by the decision of the 
ACCSQ that IEC standards be adopted as nationa l standards and notified to the IEC-APRC-ACP. 
115. The Ministry of Science and Technology (MoST) - formerly the National Authority for 
Science and Technology - was the central manageme nt agency for work on TBT-related matters.  
For matters dealing with food and drugs, the Food and Drug Administration Committee under the 
Ministry of Public Health was the responsible agency.  Under the auspices of MoST, the National 
Standards Council - comprising of representatives from the Government and private sector - examined 
proposed new standards and technical regulations  elaborated in specific technical committees 
(Decision No. 235/PMO-NAST "On the Organizati on and Activities of the National Standards 
Council" of 3 February 2010).  The Central Tec hnical Committee was also established to provide 
technical support to the Standard Council on adopting new technical regulations and standards.  Once 
finalized, the National Standards Council would fo rward the proposal to the MoST for approval.  
Approved technical regulations, sta ndards, or conformity assessment procedures were published in the 
official gazette (Government Journal) and other media.   
116. He said that Lao PDR would further meet the tr ansparency obligations of the TBT Agreement 
in the development of standards and technical regulations with the a doption and implementation 
of Decree No. 363/PM "On Notification and Enquiry of Trade Related Information" of 
19 August 2010.  The Decree allowed for public revi ew and a reasonable timeframe for comments in 
the preparation of draft TBT (and SPS) laws and regulations.  The E nquiry Points and the Notification 
Unit would be fully operational from the date of accession.  According to Decree No. 363/PM, the 
single TBT Enquiry Point would be located in the Department of Standardization and Metrology of 
the Ministry of Science and Technology; and the No tification Unit, responsible for the submission of 
WTO notifications, would be established in the Fore ign Trade Policy Department of the Ministry of 
Industry and Commerce. 
117. The representative of Lao PDR noted that Ministerial Decision No. 1199/NAST-PMO 
"On the Organization and Operation of Technical Barriers to Trade (TBT) Enquiry Point (EP)" of 
22 June 2011 and Decision No. 0471/MIOC "On the Notification Unit of SPS and TBT" of 
9 March 2011, had been adopted as the impl ementing regulations of Decree No. 363/PM.  
These regulations would strengthen coordination among notification unit, enquiry point and relevant 
authorities.  Supported by the Asian Developmen t Bank (ADB), USAID, and Trade Development  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 45 
 
 
  Facility (TDF), capacity building programs and a public awareness campaign had been conducted to 
ensure the effective operation of the Notificati on Unit and Enquiry Points.  Technical assistance 
included developing regulations a nd operational manuals, training of staff, developing websites, and 
providing necessary equipment.  He stressed that fu rther technical assistance was needed to ensure 
that Lao PDR could fully implement the transparency  provisions of the TBT Agreement.  The contact 
details of the TBT Notification Unit and Enquiry Point were:  
SPS and TBT Notification Unit: 
Foreign Trade Policy Department  
Ministry of Industry and Commerce P.O. Box 4107, Vientiane Capital, Lao PDR Tel:   85621-450065 Fax:   85621-450066 
Website:  www.laoftpd.com  
TBT Enquiry Point: 
Department of Standard ization and Metrology 
Ministry of Science and Technology PO Box 2279, Vientiane Capital, Lao PDR Tel/Fax:  85621-243405 
Email:   enquiries@laostbt.gov.la 
118. Lao PDR was asked to elaborate the policy-ma king process in the TBT area and how it would 
ensure participation of foreign stakeholders.  Th e representative of Lao PDR stated that foreign 
stakeholders participated in the consultative m echanism through the Standard Council and the Central 
Technical Committee.  In addition, Article 3.4 of the newly adopted Decree No. 363/PM 
"On Notification and Enquiry of Trade Related Information" provided that, before adopting a 
TBT measure, all interested par ties, both domestic and foreign, would be allowed to submit comments 
on the draft measures, for a period of at least 60 da ys.  The Decree also stipulated that all adopted 
technical regulations and standards, and other TB T measures should be publ ished 180 days before 
their enforcements, except in  urgent circumstances.  
119. In response to specific questions, he said that  Lao PDR recognized the results of conformity 
assessment conducted by the relevant bodies in expor ting countries if similar to Lao technical 
regulations and standards, including for c onstruction materials, textiles and chemicals 
(Regulation No. 1226/PMO-NAST "On Quality Inspection of Goods").  The quality attestation should 
be accompanied by a certificate from a testing laboratory accredited by the national standardization body in the exporting country.  The procedure fo r imported steel bars, cement, and petrol was 
stipulated in Regulation No. 1036/STEA-PMO, and fo r food and drugs in Regulation No. 586/MOH.   
Asked how Lao PDR established and a pplied the principle of equivalence, he said that goods meeting WT/ACC/SPEC/LAO/5/Rev.1 
Page 46  
 
  international standards, such as those established by  the ISO and the IEC, were cleared for import.  
Technical assistance was requested to build capacity and fully establish the basis to assess 
equivalence.  The principle was still in the process of  being incorporated in national regulations - for 
example in Regulation No. 518/MOH of 18 March 2009 w ith respect to food products.  He added that 
Lao PDR implemented mutual recognition arrange ments (MRAs) on conformity assessment through 
recognising test reports issued by testing labor atories accredited by National Accreditation Bodies of 
ASEAN members that were signatories to the MR As of International Laboratory Accreditation 
Cooperation.  Lao PDR joined ASEAN MRA for El ectrical and Electronic Equipment in 2002 and 
was working toward harmonization of regulatory regime  in electrical and electronic sector by 2010.  
The MoST was in the process of adopting the IEC International Standards and to establish the 
Lao National Accreditation Bureau (LNAB).  He stated that Lao PDR's long-term goal was to 
participate in MRAs of International Laborator y Accreditation Cooperation (ILAC) and International 
Accreditation Forum (IAF).  Even though Lao PDR had not participated in these MRAs, it recognized 
accreditation by those international systems of conformity assessment and accepted conformity assessment of exporting countries that were participants in these arrangements.   
120. Some Members requested more information about the Standardization Law No. 13/NA, 
including its structure and scope, and the distinc tion between voluntary and mandatory requirements.  
A Member asked how Lao PDR would ensure that dom estic regulations adopted before the passage of 
the Standardization Law would conform to the obligations of the TBT Agreement. 
121. In reply, the representative of Lao PDR said that the Standardization Law built upon key 
provisions of the TBT Agreement incorporated in Decree No. 85/PM, as well as other requirements of 
the Agreement.  The Law set out the framework  for standards (Articles 19 and 21), technical 
regulations (Articles 28 and 29) , and conformity assessment procedures (Part V), and would be 
accompanied by more detailed legislation as per th e action plan.  The Standardization Law covered 
the key principles, including non-discrimination (Articles 6 and 44), avoiding unnecessary barriers to 
trade (Article 6), transparency (Articles 21, 22, 27 to 30 and 47), harmonization with international 
standards (Articles 7, 19 and 44); and the concep ts of equivalence and mutual recognition.  
According to Article 20 of the Law, all standard s were voluntary unless specifically indicated in the 
relevant regulations.  With the adoption of Decr ee No. 234/GOL "On the Implementation of the Law 
on Standardization" of 6 June 2012,  all other regulations on standard s and related matters in conflict 
with the Law or its implementing Decree would be replaced or annulled.    WT/ACC/SPEC/LAO/5/Rev.1 
 Page 47 
 
 
  122. The representative of Lao PDR stated that Lao PDR would progressively implement the WTO 
Agreement on Technical Barriers to Trade in accord ance with the action plan set-out in Table 18.  
Full implementation would start from 1 January 20 15 without recourse to any further transitional 
period.  The Working Party took note of this commitment. 
- Sanitary and phytosanitary measures 
123. The representative of Lao PDR said that Lao PDR was a member of the WHO Codex 
Alimentarius Commission, the World Organization fo r Animal Health (OIE), and the International 
Plant Protection Convention (IPPC).  The SPS regula tions and standards of Lao PDR were based on 
the relevant international standard s, guidelines and recommendations.   
124. Lao PDR was also participating in a regional harmonization framework of ASEAN regarding 
SPS measures.  As ASEAN Members were adopting the standards and recommendations of the IPPC, 
OIE and Codex Alimentarius on an individual basis, a framework for the harmonization of 
phytosanitary procedures had been developed, app licable to all ASEAN Members.  The scheme was 
initially covering ten agricultural products.  Work on a phytosanitary certifica tion management system 
had been completed.  The Member countries had so  far focused on exchange of legal normative 
documents, sharing the results of scientific studies, an d developing a pest list for some major crops for 
the performance of risk assessment.  In his view , the harmonization framework was consistent with 
the WTO Agreement on the Application of Sa nitary and Phytosanitary Measures (the 
SPS Agreement).   
125. The main laws and regulations in the SPS area were the Food Law No. 04/NA of 
15 May 2004; the Livestock Production and Veterinary Law No. 03/NA of 25 July 2008; the Plant Protection Law No. 06/NA of 9 December 2008; the Law on Fisheries No. 03/NA of 9 July 2009; the Law No. 01/98NA "On Agriculture" of 10 Oc tober 1998; National Policy on Food Safety 
No. 028/PM of 3 February 2009; Decree No. 228/GoL "On Animal Disease Control and Prevention" 
of 31 May 2012; Decree No. 229/GoL "On Implementing Plant Protection Law" of 31 May 2012; 
Decree No. 230/GoL "On the Control of the Moveme nt of Animal, Animal Product and Related Item" 
of 4 June 2012;  Decree No. 363/PM "On Notifica tion and Enquiry of Trade Related Information" 
of 19 August 2010;  Ministerial Regulations No. 0719/MAF "On the Management and Use of 
Planting Material and Seeds in Lao PDR" of 3 December 1997; Technical Norms No. 0313/MAF 
"On Livestock Management in Lao PDR" of 21 January 2000; Regulation No. 586/MOH "On the 
Control on Production, Exported-Imported Safe Fo od" of 12 May 2006; Regulation No. 518/MOH 
"On the Basic Principles in the Application of Sa nitary and Technical Measures for the Food Safety 
Management" of 18 March 2009; Ministerial Deci sion No. 2860/MAF "On Control of Pesticides in WT/ACC/SPEC/LAO/5/Rev.1 
Page 48  
 
  Lao PDR" of 11 June 2010; Ministerial Deci sion No. 0870/MAF "On Animal Slaughtering and 
Animal Product" of 18 March 2011; Minister ial Decision No. 605/MOH "On Adopting Codex 
Alimentarius Standards as Priorities" of 27 April 2011; Regulation No. 0039/MAF "On Principles in 
the Application of SPS Measures in Plant and An imal Administration" of 11 January 2012; and 
Decision No. 297/MOH "On Food Inspection" of 24 February 2012. 
126. At the central level, the key governmental agencies involved in the elaboration of 
SPS measures were the Ministry of Agriculture and Forestry - the Department of Agriculture for 
plant health and the Department of Livestock and Fisheries for animal health; and for food safety the 
Ministry of Public Health - the Department s of Food and Drug and of Hygiene and Disease 
Prevention.  The two Departments of the Ministry  of Public Health worked on food safety issues 
under the supervision of the Food and Drug Adviso ry Committee.  The Committee was made up of 
representatives of the Ministries of Industry and Co mmerce, Agriculture and Forestry, and Public 
Health, and was chaired by the Department of Food  and Drug.  The implementation of food safety and 
animal and plant health policies wa s carried out by provincial and local  authorities in the 16 provinces 
and in Vientiane Capital, e.g. the provincial H ealth Offices and the provincial Agriculture and 
Forestry Offices.   
127. He added that in order to comply with the SPS Agreement, Lao PDR would need to improve 
its risk assessment procedures,  upgrade the existing legislation,  and improve and develop its 
SPS-related processes and infrastructure.  According to Lao PDR's checklist of illustrative SPS issues 
(document WT/ACC/LAO/6 and its Revisions), the principles of the Agreement regarding 
science-based regulations, measures based on necessi ty, equivalence, and non-discrimination would 
be fully incorporated in domestic regulations, includ ing for measures affecting animal or plant health.  
He provided an action plan for the implementation of the SPS Agreement in document WT/ACC/LAO/13 and its Revisions (Table 19).  As  per the Action Plan, Lao PDR had amended and 
promulgated new decrees or regulations on food insp ection; movement control of animal and animal 
product; animal disease control; general regulati on on plant and animal administration; plant 
inspection and certification; plant protection and qua rantine; and basic principles on the identification 
of pest and disease free areas.  The transparency  provisions of the Agreement would also be 
addressed, and steps were being taken to operationa lize the SPS Enquiry Point and Notification Unit 
by the date of accession.  The representative of Lao PDR stated that Lao PDR would ensure its legal 
framework on food safety, animal and plant health to  be in compliance with the SPS Agreement by 31 
December 2012.  Full implementation of  the SPS Agreement would be achieved by 
31 December 2014.  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 49 
 
 
  Table 19:  Action Plan for the Implementation of the SPS Agreement 
Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
1.  Food Safety Regulation on Bottled Drinking 
Water, No. 585/MoH, dated 12 May 2006 Adopted in May 2006 TA received from FAO and 
WHO. 
Regulation on Production, Exported-Imported Safe Food, No. 586/MoH, 
dated 12 May 2006 Adopted in May 2006 TA received from FAO and 
WHO. 
National Policy on Food Safety, No. 028/PM, dated 3 February 2009 Adopted in February 
2009 TA received from FAO and 
WHO.  TA received from Trade Development Facility (TDF) for publication, dissemination and training for all stakeholders. 
Regulation on Basic Principles in Application of Sanitary and Technical Measures in Food Safety Management in accordance with the SPS Agreement, No. 518/MoH, dated 18 March 2009  Adopted in March 2009 TA received from FAO and 
WHO on drafting.  TA received from TDF for publication, dissemination and training for all stakeholders. 
Regulation on Labelling of Pre-Packaged Food, No. 519/MoH, dated 18 March 2009  Adopted in March 2009 TA received from WHO on 
drafting. 
Decision on Food Inspection No. 297/MOH dated 24 February 2012  Adopted in February 
2012 TA received from TDF, FAO 
legal expert has been employed for finalizing the regulation. 
Regulation on Food Additives Adopted under 
Ministerial Decision on Adopting Codex Alimentarius Standards as Priorities, No. 605/MoH, dated 27 April 2011 TA to be requested from TDF 
for translation, publication, training and implementation. 
Ministerial Decision on Adopting Codex Alimentarius Standards, No. 605/MoH, dated 27 April 2011 Adopted in April 2011 TA requested from TDF for 
translation, publication, training and implementation.  
National Association of Testing Authority (NATA)'s assessment on ISO 17025 accreditation for microbiology testing laboratory Started in 2009 
 TA received from UNIDO. 
Improving food processing by 
introducing food hygiene practice, GMP GMP Guidelines 
developed and training provided in 2009-2010. TA provided by EC, FAO and 
WHO in November 2009 for training and developing guidelines.    TA requested from Japan for GMP through APO project. 
2.  Animal 
Health Law on Livestock Production and 
Veterinary, No. 03/NA, dated 
25 July 2008  Adopted in July 2008 Recommendations received 
from FAO and EU. 
 TA received from FAO and TDF for publication, dissemination and training for all stakeholders. WT/ACC/SPEC/LAO/5/Rev.1 
Page 50  
 
  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Law on Fisheries, No. 03/NA, dated 9 July 2009 Adopted in July 2009 TA received from TDF for 
publication, dissemination and training for all stakeholders. 
Ministerial Decision on Animal Slaughtering and Animal Product Inspection, No. 0870/MAF, dated 18 March 2011  Adopted in March 2011 Recommendations received 
from EU. 
Decree on the Control of the Movement of Animal, Animal Product and Related Item No. 230/GoL, dated 4 June 2012 (formerly referred to as amendment 
of Decree on Livestock and Livestock 
Products Movement Control)  Adopted in June 2012 TA received from FAO, TDF 
and USAID. 
Decree on Animal Disease Control and Prevention No. 228/GoL, dated 31 May 2012 (formerly referred to as  
amendment of Decree on Animal Epidemic Diseases) Adopted in May 2012 TA received from FAO, TDF 
and USAID 
Establishment of a diagnostic laboratory Completed in 
December 2011 BSL.3 system is being installed.  Equipment moved in from the old laboratory. Implementation funding 
requested from the World Bank. 
Identification of animal disease free areas 
 
Regulation on Establishment of Animal Disease Free Area or Compartmentalization  The principles were 
included in Decree on 
Animal Disease 
Control and Prevention No. 228/GoL, dated 31 May 2012 ADB and World Bank under 
process of designing 
programme to get 
accreditation from OIE. 
Regulation on Principles in the Application of SPS Measures in Plant and Animal Administration, No. 0039/MAF, dated 11 January 2012  Adopted in 
January 2012 TA received from USAID.  
Regulation on Criteria for Livestock 
Production and Veterinary Business  Incorporated in the 
Decree on the Control of the Movement of Animals, Animal Product and Related Item No. 230/GoL, dated 4 June 2012 and Decree on Animal Disease Control and Prevention 
No. 228/GoL, dated 
31 May 2012  
3.  Plant Health Law on Plant Protection and 
Quarantine, No 06/NA, dated 9 December 2008  Adopted in 2008 Recommendations received 
from FAO legal experts, practices of neighbouring countries.  TA received from TDF for publication, dissemination, translation and training for all 
stakeholders.  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 51 
 
 
  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Decree on Implementation of the Law on Plant Protection No. 229/GoL, dated 31 May 2012  Adopted in May 2012 TA received from FAO, TDF 
and USAID 
Regulation on Good Agriculture Practices Adopted in 2010  
Guideline on Inspection and 
Certification Procedures for Plants, Plan Products and Related Articles (formerly refers to as the Regulation on Plant Inspection and Certification). Incorporated in Decree 
on Implementation of the Law on Plant Protection No. 229/GoL, dated 31 May 2012 TA received from FAO and 
TDF 
Establishment of a laboratory on plant diseases and pests Deferred No funding.  
Identification of pest and disease free 
areas Basic principles have 
been incorporated in the Decree on Implementation of the 
Law on Plant 
Protection No. 229/GoL, dated 31 May 2012  
Ministerial Decision of on Control of 
Pesticides in Lao PDR, No. 2860/MAF of 11 June 2010 (formerly referred to as the Regulation on Pesticide Management) Adopted in 2010 TA requested from TDF for 
translation and publication.  
4.  Information Procedures Decree on Notification and Enquiry 
of Trade Related Information, No. 363/PM, dated 19 August 2010 (formerly referred to as Decree on the SPS and TBT Notification Centre and Enquiry Points) Adopted in August 
2010 TA received from EU on 
drafting and received from USAID and ADB for implementation. 
Establishment of SPS Enquiry Point under Decree on Notification and Enquiry of Trade Related Information No. 363/PM  Decision on SPS Enquiry Point, No. 1502/MAF, dated 23 June 2011 was adopted to strengthen coordination among notification unit, enquiry points and relevant authorities. 
 Address of SPS Enquiry Point:  Department of Planning, Ministry of 
Agriculture and Forestry  
PO Box 811, Vientiane Capital,  
Lao PDR 
Tel: 85621-415363 Fax: 85621-412343 Email: enquiries@laossps.gov.la   (To be operational upon accession) Operational upon 
Accession    Adopted in June 2011      Responsible staff has been assigned; 
Webpage has been 
developed under Trade Portal website;  TA received from USAID and 
ADB for implementation.    TA received from USAID.       Training and study visit for responsible staff have been 
requested from USAID WT/ACC/SPEC/LAO/5/Rev.1 
Page 52  
 
  Issues Actions Implementation 
Timeframe Technical Assistance 
Provided/Sought 
Establishment of SPS and TBT Notification Unit under Decree on Notification and Enquiry of Trade Related Information No. 363/PM  Decision on SPS and TBT Notification Unit No 0471/MOIC, 
dated 9 March 2011 
 Address of SPS and TBT Notification Unit: Foreign Trade Policy Department, Ministry of Industry and Commerce.  P.O. Box 4107, Phonexay Road, Vientiane Capital, Lao PDR Tel:  85621-450065 Fax: 85621-450066  Website:  www.laoftpd.com   Operational upon 
Accession    Adopted in March 2011  
 
 Responsible staff has been assigned; Training and study visit for responsible staff have been requested from USAID TA requested from USAID 
and ADB for implementation, e.g. establishment of database, training of relevant staff on the SPS and TBT Agreements including through exchange experiences and study visit. 
 
128. Having examined the information and the previ ous versions of the SPS Action Plan submitted 
by Lao PDR, some Members requested more deta iled information concerning how Lao PDR intended 
to develop its legal framework to incorporate th e basic principles of the SPS Agreement and apply 
measures in conformity with the Agreement with re spect to food safety, and animal and plant health.  
Lao PDR was invited to be more precise regarding the timelines envisaged to draft, finalize and 
implement outstanding legislation, and to also ela borate further on its technical assistance needs to 
finalize its legislation, and enhance the institutiona l capacity and laboratory build-up.  Members also 
sought clarifications on specific SPS measures and po licies; in particular, stakeholder participation 
and communication in drafting risk assessments.  
129. In reply, the representative of Lao PDR noted that, in the area of food safety, all the basic 
principles of the SPS Agreement such as necessity , non-discrimination, transparency, science-based 
regulations, risk assessment, harmonization, and equi valence had been incorporated in national laws 
and regulations, specifically in the 2004 Food Law 04/NA of 15 May 2004; the National Policy on 
Food Safety No. 028/PMO of 3 February 2009; Regulation No. 518/MOH "On the Basic Principles in 
the Application of Sanitary and Technical Measures for the Food Sa fety Management" of 18 March 
2009; and Decision No. 297/MOH "On Food Inspection" of 24 February 2012.  Ministerial Decision No. 605/MOH "On Adopting Codex Alimentarius Sta ndards as Priorities" of 27 April 2011 provided 
the basis for the adoption of new food standards ba sed on the standards of th e Codex Alimentarius.  
On animal and plant health, the requirements contai ned in the SPS Agreement were incorporated in 
Decision No. 0039/MAF "On Principles in the App lication of SPS Measures in Plant and Animal 
Administration" of 11 January 2012; Decree No. 228/GoL "On Animal Disease Control and  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 53 
 
 
  Prevention" of 31 May 2012; Decree No. 229/GoL "O n Implementing of the Law on Plant Protection" 
of 31 May 2012; and Decree No. 230/GoL "On the Control of the Movement of Animal, Animal 
Product and Related Item" of 4 J une 2012.  He believed that the laws, decrees and regulations 
provided for in the SPS Action Plan (Table 19) would provide a comprehensive legal basis for 
Lao PDR to comply with all the requirements of the SPS Agreement and relevant international 
standards.   
130. On food safety, he further explained that the National Policy on Food Safety No. 028/PMO 
reiterated that the standards of Lao PDR should adhere to standard s, guidelines and recommendations 
developed by the relevant intern ational organizations, including C odex Alimentarius, IPPC and the 
OIE, and comply with the SPS and TBT Agreements .  In addition, key components of the Policy 
included the implementation of food safety through laws, regulations and standards; use of risk 
analysis (with stakeholder participation limited to risk communication and risk assessment - where 
data was accessible - for an objective science-based evaluation of risk); adoption of an Integrated 
Food Chain Approach; the promotion of greater intern ational co-operation in the area of food safety, 
and strengthening human and institu tional capacities.  Specific regula tions had been adopted for the 
production, import and export of safe food, for labelli ng of pre-packaged food, for food additives and 
for bottled drinking water.  The Manual on Good  Manufacturing Practices (GMP) and Hazard 
Analysis and Critical Control Points (HACCP) ha d been developed by the Department of Food 
and Drug.  Decision No. 297/MOH "On Food Inspec tion" had been adopted on 24 February 2012 
(formerly referred to as Regulation on Food Control System). 
131. The representative of Lao PDR said that La o PDR accepted all Codex standards both for 
imported and domestically-produced goods.  However, due to limited resources and capacity constraints, it was difficult to transform all Codex st andards into the national standards.  Therefore, 
Lao PDR had identified a list of essential standards,  which were the priorities for consumer protection 
and domestic production management.  These standa rds applied only to local production to raise 
awareness and build capacity for local producers, so  as to ensure their production and processing 
related activities eventually meet with the requi rements of the Codex standards, guideline, and 
recommendations.   
132. In response to specific questions, he added th at the "reasonable risk assessment framework" in 
Regulation No. 518/MOH referred to the conventional risk assessment steps of hazard identification 
and characterization, exposure assessment and risk  characterization in food safety management.  
Lao PDR was currently seeking technical assistance in  developing the risk assessment methodology.  
Lao PDR would ensure enough participation of stak eholders in the risk analysis process through a WT/ACC/SPEC/LAO/5/Rev.1 
Page 54  
 
  rapid alert system within ASEAN, the INFOSAN ne twork of the WHO, and the future operation of 
the SPS and TBT Notification Unit and the SPS Enquiry Point.  In the absence of national standards, 
Codex Alimentarius standards were applicable w ith respect to food residues and contaminants, and 
substances such as sweeteners, colorants, preservatives etc.  On the recognition of foreign standards, 
he said that Lao PDR accepted the standards and certification of countries that, like Lao PDR, had 
adopted Codex Alimentarius standards.  The SPS certification of those countries would be accepted 
by Lao PDR.  He added that La o PDR's general policy followed inte rnational standards and guidelines 
(Food Law, Article 13) and applied Codex Alimenta rius as the minimum required standards.  If a 
country imposed a standard, which resulted in a highe r level of sanitary or phytosanitary protection 
than provided for by Codex standards, Lao PDR would accept such standards.  In case a country 
adopted different standards than Codex standards, th e scientific justification was required.  He added 
that to evaluate and assess whether a trading partne r's standard was compliant with Codex standards, 
Lao PDR followed the SPS Committee Decision on Equi valence (G/SPS/19/Rev.2) in addition to the 
provisions of Article 4 of the SPS Agreement, and Guidelines on the Judgement of the Equivalences 
of Sanitary Measures Associated with th e Food Inspection and Certification Systems 
(CAC/GL 53-2003).  Applications of Good Manufact uring Practices (GMPs) and Hazard Analysis 
and Critical Control Points (HACCP) or HACCP-like syst em were also factors to be considered in the 
assessment process. 
133. In response to specific questions on food inspec tions, the representative of Lao PDR said that 
for imported food products, the documents, Certificat e of Analysis (COA), Health Certificate (HC), 
Good Manufacturing Practices (GMP), Hazard Analysis  and Critical Control Points (HACCP), issued 
by competent authority of exporting country, and t esting samples were required.  The requirements of 
the characteristics attestations, which might require to  be attached with health certificate, would be 
applied in compliance with relevant Codex sta ndards, guidelines and recommendations and also 
complied with the SPS Agreement.  The require ments would be science-based, transparent and 
non-discriminatory.  For domestically-produced products, national standa rds based on Codex 
standards, guidelines and recommendati ons had to be respected.  Domestic producers were required to 
prove compliance every 180 days through testing analysis.  Due to limited human and financial 
resource, food inspections were nor mally conducted in cases of safety alerts or requests by consumers 
or other sources.  He stated that Decision No. 2 97/MOH "On Food Inspection" defined the procedures 
for food inspection for import goods  and domestic production, based on Codex standards, guidelines 
and recommendations, and taking account of the non-di scrimination principle between domestic and 
foreign suppliers and the requirements of Article 8 and Annex C of the SPS Agreement.  He said that 
the new Decision required the same inspection pro cedures based on risk assessment for both imported 
and domestically-produced pr oducts.  A risk assessment system, w ith all food products categorized  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 55 
 
 
  according to their risk levels, had been introduc ed.  Under the new Decision, the frequency of 
inspection had been defined by three food risk categories: A - high risk foods; B - medium risk foods; 
and C - low-risk foods.  The high risk foods would be subject to higher frequency of inspection.  
The consignments accompanied by certificates of he alth issued by competent authorities of exporting 
countries and test reports from accredited laborator ies in exporting countries would be subject to a 
lower frequency of inspection.  The Codex Ge neral Guidelines on Sampling had also been 
incorporated into the new Decision.  Lao PDR was receiving technical assistance from ADB, EU, 
FAO, WHO, UNIDO, USAID and the multilateral scheme s, such as the EIF and TDF, for developing 
legal framework, strengthening capacity building and equipping laboratory. 
134. A Member noted that the proposed documentati on requirements could be burdensome for its 
exporters.  The Member encouraged Lao PDR to c onsider introducing a food safety system targeting 
inspection resources based on risk assessment.  In r esponse, the representative of Lao PDR said that 
his Government would take appr opriate action in accordance with the Decision on the Implementation 
of Article 4 of the WTO Agreement on the Applica tion of Sanitary and Phytosanitary Measures and 
the Codex Guidelines for the Design, Operation, Assessment and Accreditation of Food Import and 
Export Inspection and Certification Systems, to ensu re that the certification requirement was justified 
by the risk to health or the risk of fraud or decep tion.  In addition, alternatives to certification would 
be considered wherever possible, in particular where the inspection system and requirements of an 
exporting country were assessed as being equivalent to  those of Lao PDR.  Bilateral or multilateral 
agreements, such as mutual recognition agreements or pre-certification agreements, would provide for 
dispensing with certification and/or the issuance of  certificates which were previously required in 
certain cases.   
135. In response to a further comments on documentation requirements, the representative of Lao 
PDR confirmed that, if Lao PDR concluded a fa vourable evaluation of the food safety controls 
systems of the exporting country, it would include th e relevant food products into its low-risk food 
categorization, and corresponding frequency of insp ection would be applied as defined under Articles 
5 and 6 of Decision No. 297/MOH.  Imports of  foods that were certified under GMP/GHP 
(Good Hygiene Practices) and HACCP would also be allowed to import into Lao PDR without 
requiring additional health certificates taking into account of the concerns of exporting countries, 
whose competent authorities did not have the aut hority to issue health certificates.  He further 
confirmed that agricultural and food products of ex porting countries would still be allowed to import 
into Lao PDR until the time that Lao PDR could ca rry out evaluations of such countries' systems, 
provided that they complied with relevant legislation. WT/ACC/SPEC/LAO/5/Rev.1 
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  136. He noted that Lao PDR continued to experi ence incidences of imported food and beverages 
having expired shelf life.  Regulation No. 519/M OH "On Labelling of Pre-packaged Food" defined 
the expiry or use-by date as the period after whic h the product, under any stated storage conditions, 
would not have the attributes expected by the consumer .  Some Member noted that the use of the term 
"nearly expired food" was inconsistent with Code x standards.  In response, the representative of 
Lao PDR said that Lao PDR followed labelling require ments as provided for by Codex standards in 
Regulation No. 519/MoH.  He noted that the "nearly  expired food" concept was only used to prevent 
importation of discounted food, whic h expired by the time of consumption and might cause health 
problems.  He added that Lao PDR was in the proc ess of reviewing the definition and would adapt its 
regulation accordingly. In response to a specific question, he confirmed that the labelling requirements do not apply to bulk fresh fruits and ve getables as indicated by Codex Standard 1-1985. 
137. A Member of the Working Party expressed c oncerns regarding the mandatory labelling 
requirement for genetically-engineered (GE) foods or food ingredients, as described in 
Article 5(1)(b)(ii) of the Regulation on Labelling of Pre-packaged Food.  The Member pointed out that such measure could be considered misl eading and requested Lao PDR to provide more 
information on the scientific rationale on which th e labelling requirement was to be based; the process 
of implementation; and, analytical methods and sa mpling procedure to be used.  The Member noted 
that ASEAN Common Principles and Requirements fo r the Labelling of Pre-packaged Food was just 
giving ASEAN member states independent dete rmination to develop a national GE labelling 
approach, which could be voluntary, mandatory, or a combination of the two.  Therefore, the Member 
suggested that Lao PDR reconsidered this manda tory labelling requirement and instead introduced 
voluntary labelling or other means to provide meaningf ul information to consumers and to achieve the 
Government's objectives.  In response, the repr esentative of Lao PDR stated that the ASEAN 
Common Principles and Requirements for the Labe lling of Pre-packaged Food was in fact not 
mandatory.  However, Article 38 of the Food Law pr ovided for the consumer's right to know on food 
products.  Article 5.1(iii) of Regula tion "On the Labelling of Pre-packaged Food" ensured such a right 
by requiring the provision of all information (incl uding GE type), which consumers had the right to 
know in making their decision to purchase food products. 
138. In the area of animal health, the represen tative of Lao PDR stated that Law No. 03/NA 
"On Livestock Production and Veteri nary Matters (Articles 45, 46 a nd 47)" of 25 July 2008 and the 
2009 Fisheries Law defined general provisions on an imal quarantine.  The Ministerial Decision 
No. 0870/MAF "On Animal Slaughtering and An imal Product" was adopted on 18 March 2011.  
In addition, Decree No. 230/GoL "On the Control of  the Movement of Animal, Animal Product and 
Related Item" of 4 June 2012 (formerly referre d to as amendment of Decree "On Livestock and  WT/ACC/SPEC/LAO/5/Rev.1 
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  Livestock Products Movement Control") and Decr ee No. 228/GoL "On Animal Disease Control and 
Prevention" of 31 May 2012 (formerly referred to  as amendment of Decree "On Animal Epidemic 
Diseases") had been adopted to incorporate the key SPS principles, including the transparency 
requirements, which would require all proposed regula tions to be notified and published before their 
adoption and enforcement.  Previously planned Re gulation "On Criteria for Livestock Production and 
Veterinary Business" had been incorporated in  Decrees No. 228/GoL and No. 230/GoL.  The test 
results can be obtained at the National Animal Disease Diagnostic Laboratory at National Animal 
Health Center (NAHC).  On re gionalization determination, La o PDR strictly followed OIE's 
standards, guidelines and recommenda tions.  Decree No. 228/GoL, had in corporated the principle of 
regionalization including the establishment of frame work for disease-free and pest-free or low pest or 
low disease areas.  He added that Decision "On Pr inciples in the Application of SPS Measures in 
Plant and Animal Administration" of 11 January 2012 ensured that any trade restrictions would 
comply with the SPS Agreement in particular, Articles 2.1, 2.2, 2.3 and 6.   
139. The representative of Lao PDR noted that due to  financial and human resources constraints, 
Lao PDR did not have any quarantine facilities at th e border checkpoints in place.  At the checkpoints, 
importers were required to provide  relevant documents and were s ubject to a physical inspection.  
Lao PDR, therefore, relied on exporting countri es to undertake quarantine inspections.   
140. In response to questions on specific SPS measures, the representative of Lao PDR said that 
Lao PDR currently did not have a specific policy on Bovine Spongiform Encephalopathy (BSE) in 
place.  The disease control policies were generally developed on a case-by-case basis.  In case of an 
outbreak of BSE, Lao PDR would follow the OIE recommendations and guidelines in taking BSE quarantine measures and/or imposing trade restric tions.  Regarding the po licy on pathogen reduction 
treatments (PRTs), he said that Lao PDR allowed the use of PRT on poultry to reduce contamination 
by salmonella.  At present, there was no specific "restrictions on which pathogen reduction treatments 
are used".  However, Lao PDR would generally  follow OIE recommended practices on salmonella 
control.  Lao PDR did not have an o fficial tolerance policy for salmonella. 
141. As for plant health, Law No. 06/NA "On Plant Protection and Plant Quarantine" had been 
adopted in December 2008.  Its implementing re gulation, Decree No. 229/GoL "On Implementation 
of the Law on Plant Protection" was adopted on 31 May 2012, which also incorporated the guideline 
on plant inspection and certification (formerly planned as Regulation "On Plant Inspection and 
Certification"); and the principle of the establis hment of framework for disease-free and pest-free or 
low pest or low disease areas.  Ministerial Deci sion No. 2860/MAF "On Control of Pesticides in 
Lao PDR" (formerly referred to as Regulation "On Pesticide Management") was adopted on WT/ACC/SPEC/LAO/5/Rev.1 
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  11 June 2010.  He provided a list of quaran tine pests (2005) in document WT/ACC/LAO/11, 
Annex 2.  As a member of IPPC, Lao PDR fo llowed IPPC guidelines in the implementation of 
SPS measures.  Plant inspection was conducted to anal yse the quality of plants and the existence of 
any chemical residues, pests and diseases in order to ensure safety for plant health and consumption.  
Lao PDR did not require plant inspection for importe d plants.  However, an importer was obliged to 
provide plant health certificate issued by relevant  competent body of exporting country.  In response 
to a question regarding Decision No. 2860/MAF, the representative of Lao PDR said that the 
Regulation covered:  (i) registration of pesticide;  (ii) management of production, import, export, 
distribution, transportation, storage and transit of pesticide; (iii) use and disposal of pesticides; 
(iv) packaging, labelling and advertising of p esticides; and (v) management and inspection of 
pesticide.  He added that Lao PDR followed C odex standards in setting and testing the Maximum 
Residue Levels (MRLs). 
142. In response to specific questions, he sai d that Ministerial Decision No. 2860/MAF 
"On Control of Pesticides in Lao PDR" of 11  June 2010 (formerly referred to as Regulation 
No. 0886/MAF "On Pesticide Management") requi red an import permit from the Department of 
Agriculture (or the Agriculture a nd Forestry Office in the provinces and Vientiane Capital) for each 
shipment with a view to monitoring the actual im portation of pesticides.  A prior registration of 
pesticide with the Department or Offices was also required except for botanical pesticides not packed 
for sale; pesticide imported for the purpose of resear ch, trial or exhibition with a condition of getting 
provisional registration from agriculture authorities.  The registration was valid for two years.  
143. He added that Lao PDR elaborated detailed t echnical assistance requirements for bringing its 
entire regime into comp liance with the SPS Agreement under the Enhanced Integrated Framework.  
The Ministry of Agriculture and Forestry in collabor ation with the Ministry of Public Health and the 
Ministry of Science and Technology had received technical assistance from the Trade Development 
Facility, under a multi-donor trust fund.  The key com ponents of the project were (i) strengthening the 
SPS institutional, legal and regulat ory framework; (ii) determining risk-based policies and control 
measures for SPS; and (iii) strengthening the ro le of the private sector in the SPS regime. 
144. Asked how the transparency provisions of th e SPS Agreement would be applied in Lao PDR, 
he said that, pursuant to Decree No. 363/PM "O n Notification and Enquiry of Trade Related 
Information" of 19 August 2010, Lao PDR was estab lishing its SPS Enquiry Point at the Department 
of Planning in the Ministry of Agriculture and Forestry, and its SPS (and TBT) Notification Unit at the Foreign Trade Policy Department in the Minist ry of Industry and Commerce.  He noted that 
Ministerial Decision No. 1502/MAF "On the Or ganization and Operation of Sanitary and  WT/ACC/SPEC/LAO/5/Rev.1 
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  Phytosanitary Enquiry Point" of 23 June 2011 and Decision No. 0471/MOIC "On SPS and TBT 
Notification Unit" of 9 March 2011 had been adop ted to further strengthen the coordination and 
information exchange among SPS and TBT Notificati on Unit and Enquiry Points.  The regulatory and 
institutional framework was in preparation, and La o PDR was receiving technical assistance to train 
staff.  The SPS Enquiry Point and the Notificatio n Centre would be operational by the date of 
accession to the WTO.  The contact details of the TBT Notification Unit and Enquiry Point were: 
SPS and TBT Notification Unit: 
Foreign Trade Policy Department  
Ministry of Industry and Commerce PO Box 4107, Vientiane Capital, Lao PDR Tel:   85621-450065 Fax:   85621-450066 
Website:  www.laoftpd.com 
SPS Enquiry Point: 
Department of Planning 
Ministry of Agriculture and Forestry  PO Box 811, Vientiane Capital, Lao PDR Tel:   85621-415363 
Fax:   85621-412343 
Email:  enquiries@laossps.gov.la 
145. Decree No. 363/PM (Article 3.4) also provide d for that before adopting SPS measures, all 
interested parties, both domestic and foreign, wo uld be allowed a period of at least 60 days for 
comments on the draft SPS measures.  The Decree also required that all adopted SPS measures be 
published 180 days before their en forcements, except in urgent circumstances.  In response to a 
specific question, he said that Lao PDR would pub lish all SPS related laws a nd regulations, including 
SPS related import conditions, on the Lao Trade Port al (www.laotradeportal.gov.la), a website, which 
was being developed by the Ministry of Industry and Commerce with support from the Trade 
Development Facility (TDF).  The website would provide comprehensive information to facilitate 
international trade.  All relevant requirements and procedures for importation would be present for 
each product (by HS code), including SPS/TBT measures.   This website was expected to be launched 
by June 2012. 
146. [The representative of Lao PDR stated that Lao PDR would progressively implement the 
WTO Agreement on the Application of the Sanitary  and Phytosanitary Measures in accordance with 
the action plan set out in Table 19.  The representative of Lao PDR affirmed that Lao PDR's legal framework on food safety, animal and plant health would be in compliance with the SPS Agreement WT/ACC/SPEC/LAO/5/Rev.1 
Page 60  
 
  by 31 December 2012.  Full implementation would start from 1 January 2015 without recourse to any 
further transitional period.  The Working Party took note of this commitment.] 
- Trade-related investment measures 
147. Some Members noted that Law No. 10/NA "On the Promotion of Domestic Investment", 
Law No. 11/NA "On the Promotion of Foreign I nvestment" and its implementing regulations 
(Decree Nos. 300/PM and 301/PM) encouraged ex port-oriented production and import substitution 
and would, with these objectives in mind, appear to  include measures falling within the scope of the 
WTO Agreement on Trade-Related Investment Measures (TRIMs Agreement).  In particular, Decree Nos. 300/PM and 301/PM include d provisions for import duty and tax concessions and eligibility 
criteria for investment incentives (Annex 2, footnote ) that could be construed as local content or 
export performance requirements.  Lao PDR was re minded that in order to utilize the transitional 
arrangements under the TRIMs Agreement, Lao PD R would be required to identify the precise 
measures for which it would be seeking transitions.  Lao PDR should also indicate how long within 
the allowable period it believed it would be necessary to maintain th e measures, and commit to the 
elimination of all measures incons istent with the TRIMs Agreement within a date certain, e.g. seven 
years from the date of accession to the WTO.  In  case Lao PDR would like to avail itself of the 
transitional period allowed for in the Sixth WTO Ministerial Conference Declaration, Lao PDR was requested to confirm that the phase-out period for existing measures would last for seven years from 
the date of accession and have effect for those ex isting measures notified to the Council for Trade in 
Goods.   
148. In reply, the representative of Lao PDR took note of the request for TRIMs measures to be 
notified.  Bearing in mind the flexibilities granted to LDCs through the Sixth WTO Ministerial Conference Declaration (paragraphs 35 to 38 and Annex F), he said that Lao PD R would like to avail 
itself of the available transitions and phase out its incompatible TRIMs measures as foreseen for 
LDC Members.  A Committee had been set up under the Prime Minister's Office to propose 
alternative measures to promote Lao PDR's industria l policy.  He added that Lao PDR had revamped 
its investment legislation with Law No. 02/NA "On Investment Promotion" of 8 July 2009 replacing 
Law Nos. 10/NA and 11/NA and annulling Decree Nos. 300/PM and 301/PM.  Law No. 02/NA did 
not include provisions on import duty and tax c oncessions and eligibility criteria for investment 
incentives that could be construed as local c ontent or export performance requirements.   
149. The representative of Lao PDR said that Lao PDR would not maintain any measures 
inconsistent with the TRIMs Ag reement and would apply the TRIMs Agreement from the date of  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 61 
 
 
  accession without recourse to any transitional period.  The Working Party took note of this 
commitment. 
- Free zones, special economic areas 
150. The representative of Lao PDR said that La o PDR had established two border trade zones 
(Boten and Dansavanh Village) and one specia l economic zone (Savan-Seno) pursuant to 
Decree No. 25/PM "On Dansavanh Village Border Trade Zone" of 25 March 2002; 
Decree No. 162/PM "On Border Trade Zone at Bo ten, Louangnamtha Provin ce" of 8 October 2002; 
and Decree No. 148/PM "On Savan-Seno Special  Economic Zone" of 29 September 2003.  
Decree Nos. 25/PM and 162/PM set out the requi rements for investing in the trade zones 
(Articles 5 to 7 Decree Nos. of 25/PM and 162/PM ) as well as the incentives ac corded to the projects 
(Articles 14 to 24 Decree Nos. of 25/PM and 162/PM ).  Natural or legal persons, regardless of 
nationality, could invest in these zones and engage in manufacturing, services or trading activities. 
Subsequently, Decree No. 443/PM "On Specific and Special Economic Zone" was adopted on 26 October 2010, which provided for the general guidelines for special economic zones and the list of 
incentives available in those zones. 
151. In addition to the incentives available under the investment regime and in accordance with 
Decree Nos. 25/PM and 162/PM, investors in the bo rder trade zones could avail of import and export 
duty exemptions on goods exported from the zones ( as well as duty-free imports for exhibitions and 
trade fairs); reductions or exemptions on profit ta x with a tax holiday of four years followed by 
payment of half the applicable rate over a grace pe riod of four years (losses could be carried forward 
and the tax was rebated if profits were reinvested in the zones); income (dividend) tax exemption 
during the profit tax exemption period; and exemp tion from turnover tax (except for goods that were 
imported for a trade fair or exhibition and subseque ntly sold in the border trade zone).  Investors 
could also avail of an exemption from the land lease fees for a period of five to seven years. 
152. As for the special economic zone, the preferen tial duty and tax treatment was determined in 
Decree No. 177/PM "On Management Regulation a nd Incentive Policies regarding the Savan-Seno 
Economic Zone" of 13 November 2003 (as provided  for in Article 6.4 of Decree No. 148/PM).  
Pursuant to Decree No. 177/PM, investments in the special economic zone were exempt from 
turnover, excise and land tax.  Construction mate rial, machinery, raw materials, semi-finished 
products, vehicles and spare parts used as inputs for production were exempt from customs duty.  In addition, reductions or exemptions from profit ta x were granted for periods  ranging between two to 
10 years as outlined in document WT/ACC/LAO/19 (pages 10 to 12).  WT/ACC/SPEC/LAO/5/Rev.1 
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  153. In response to specific questions, the represen tative of Lao PDR confirmed that goods 
produced in the border trade zones and in the special  economic zone would be subject to import duty 
when entering the normal customs territory of Lao PDR.   
154. He noted that certain incentives in the special economic zone and the border trade zones had 
been contingent upon export performance and the use of local content.  Profit tax exemptions or 
reductions in the special trade zone were con tingent upon export performance (enterprises exporting 
70 per cent or more of their output could avail of a ten year tax holiday, while enterprises exporting 
between 30 and 69 per cent were eligible for seven  years, and those exporting less than 30 per cent 
were eligible for a five year exemption period).  In addition, enterprises sourcing 50 per cent or more 
of their raw materials domestically could avail of a reduced profit tax rate.  In the border trade zones, 
a discount was applied to the ordinary rate of cust oms duty depending on the percentage of local raw 
materials and the value added in the zones.  Goods w ith local content up to 20 per cent were subject to 
a flat 10 per cent reduction in the customs duty (e.g. 4.5 per cent instead of 5 per cent).  The customs 
duty for goods with more than 20 per cent local c ontent was rebated by a percentage corresponding to 
the percentage of local content in the good in question.   
155. Some Members urged Lao PDR to remove th e differentiated treatment between imported 
products and the goods produced in the border trad e zones/special economic z one and to apply normal 
import duties, without reductions, when such good s entered the domestic market.  In reply, the 
representative of Lao PDR said that legislation was being reviewed to ensure compliance with 
WTO principles and the ASCM.  Decree No. 443/PM  "On Specific and Special Economic Zone" was 
adopted in October 2010.  Decree No. 162/PM "O n Border Trade Zone at Boten, Louangnamtha 
Province" was no longer in force.  The provisions on the use of domestic over imported goods in the remaining zones Savan-Seno Special Economic Zo ne (Decree No. 177/PM) and Dansavanh Village 
Border Trade Zone (Decree No. 25/PM) had been  terminated in March 2012.  However, the 
representative of Lao PDR reiterated the flexibilitie s on export performance requirements provided to 
LDCs by the WTO Agreement on Subsidies and Countervailing Measures. 
156. The Representative of Lao PDR said that fr ee zones established under Decree No. 443/PM 
"On Specific and Special Economic Zone in Lao PDR"  and any subsequent legislation would be fully 
subject to the coverage of WTO Agreements and its  commitments in its Protocol of Accession to the 
WTO Agreement and that Lao PDR would ensure enforc ement of its WTO obligations in those zones.  
In addition, the Representative of Lao PDR confir med that from the date of accession goods produced 
in any free trade, special economic  zones or areas under tax and tari ff provisions that exempt imports 
and imported inputs from tariffs and certain taxes would be subject to normal customs formalities  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 63 
 
 
  when entering the rest of Lao PDR, including the ap plication of tariffs and taxes.  The Working Party 
took note of these commitments. 
- Government procurement 
157. The representative of Lao PDR said that gove rnment procurement was regulated by Prime 
Minister Decree No. 03/PM "On Goods, Works, Main tenance, and Services" of 9 January 2004, and 
Regulation No. 063/MOF of 12 March 2004.  The bi dding documents and proc urement manuals were 
developed and used by government agencies and St ate-owned enterprises at the central and provincial 
levels.  The Procurement Monitoring Office at the Ministry of Finance was responsible for 
administering the procurement of all ministries, governmental agencies, the provinces and Vientiane 
Capital, and State-owned enterprises.   
158. The regulations stipulated seven methods of procurement and defined the precise conditions 
for using each procedure, i.e. (i) public bidding whereby individuals, companies, enterprises, joint 
ventures or international enterprises obtained equal opportunity to submit bids; (ii) limited bidding, 
whereby the number of suppliers was limited, but the procuring entity was required to ensure a 
competitive price and sufficient capacity; (iii) price comparison - domestic and international.  
Domestic price comparison implied offers being sought from at least three qualified domestic 
suppliers, and international price comparison woul d involve at least three qualified international 
suppliers from at least two countries; (iv) direct c ontracting, in which case the procuring entity would 
negotiate the contract terms and c onditions directly with one or more  supplier(s).  Approval for this 
procedure was subject to certain conditions and decided case by case; (v) international competitive 
bidding, where bidders could be domestic or fore ign companies and the bidding notification was 
available abroad.  A margin of preference was taken into account for comparison between domestic 
and foreign suppliers; (vi) pre-qualification of bidd ers, e.g. for large-scale, technically complex and 
high value projects, where the suitability of the bidders would be assessed by a tender committee, a 
number of companies would be short-listed, and th e selected candidates would be invited to submit 
bids; and (vii) two-stage bidding, whereby technical  and methodological requirements were taken into 
account at the first stage, followed by an eval uation of the proposals at the second stage.   
159. Asked whether Lao PDR would consider jo ining the WTO Agreement on Government 
Procurement, the representative of Lao PDR said the decision would depend on the capacity of 
governmental agencies to manage the term s and conditions of the Agreement.   WT/ACC/SPEC/LAO/5/Rev.1 
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  - Transit 
160. The representative of Lao PDR said that Lao PDR was a land-locked country dependent on 
the effective cross-border transit of goods.  ASE AN had developed arrangements to facilitate transit 
trade among its members and to reduce costs in the cross-border movement of goods.  Goods in transit through Lao PDR were regulated accordi ng to Article 33 of the Customs Law (2005) and 
Article 8 of Ministerial Instruction No. 0491/MOF of  16 June 2009.  Goods in transit were exempt 
from import and export duties.   
- Agricultural policies 
(a) Imports 
161. The representative of Lao PDR said that the impor t duty on agricultural products ranged from 
5 to 40 per cent with a simple average of 18.8 per cent.  As agriculture was the backbone of the Lao 
economy, high tariffs were maintained on a number of products that affected the livelihood of the 
majority of Lao people.  In the past, imports of  all animal parts and agricultural goods produced 
locally such as chillies, aubergin es, tomatoes, bananas, lemons and other fruit had been banned 
(Notification No. 870/MOC of 19 September 1996).   Presently, Lao PDR did not maintain any 
seasonal restrictions, prohibitions or other controls on the importation of agricultural products other 
than rice (HS 1006) and plant products under HS 0601, which were subject to automatic licensing (Table 12).  He confirmed that the import restric tions previously imposed on rice, i.e. non-automatic 
licensing and indicative annual import plan, had been a bolished.  In response to a specific query, he 
said that the procedure for obtaining import permits  for agricultural commodities and agro-chemicals 
demonstrated with a flow chart, circulated in  Annex V of document WT/ACC/LAO/5 was no longer 
valid.  The current regime was explained in  the Import Licensing Questionnaire (document 
WT/ACC/LAO/25).  
162. Some Members noted that Lao PDR was seek ing recourse to apply Special Safeguards 
(SSGs) for some products in its most recent market  access offer.  Lao PDR was invited to provide the 
rationale for this request.  In reply, the representa tive of Lao PDR explained that Lao PDR previously 
maintained quantitative restrictions, such as prohib itions or licensing requirements for these products.  
He noted that once Lao PDR liberalized its tr ade regime, Lao PDR intended to maintain the 
possibility to apply SSG measures for some products in order to limit the unforeseen risk and mitigate 
adverse effects on vulnerable poor farmers, who ac counted for more than 30 per cent of Lao PDR's 
population and were living under the poverty line.  WT/ACC/SPEC/LAO/5/Rev.1 
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  (b) Exports 
163. The representative of Lao PDR said that some ag ricultural products were subject to export 
licensing (Tables 16 and 17).  Export duties were le vied on certain agricultural products listed in 
Table 14.   
164. A Member noted that Lao PDR had no agricultural export subsidies, but would like to 
maintain a right to use such s ubsidies as long as it remained an LD C.  Lao PDR was encouraged to 
maintain standstill on export subsid ies for agricultural products.   
165. In reply, the representative of Lao PDR noted that Lao PDR did not envisage such measures 
at this stage, but welcomed the underlying developmen t rationale of the flexibilities granted to LDCs.   
(c) Internal policies 
166. The representative of Lao PDR said that his count ry was predominantly an agrarian economy 
as the agricultural sector accounted for more than 50 per cent of Lao PDR's GDP, employed about 
80 per cent of the workforce, and provided a livelihood - often at a subsistence level - to the majority 
of the population.  Rice was the staple crop cultivat ed and consumed domestically.  Other grains and 
pulses, vegetables, fruit, livestock, tobacco and coffee were also produced in Lao PDR.   
167. The representative of Lao PDR provided in formation on domestic  support and export 
subsidies in the agricultural sector fo r the period 2001 to  2003 in document 
WT/ACC/SPEC/LAO/1/Rev.1.  Expenditures on "green box" measures – principally the funding of research, pest and disease control, training and exte nsion and advisory services - had averaged some 
KN 56.7 billion (US$5.6 million) per year during this period.  In addition, Lao PDR reported outlays 
on development programmes (Article  6.2) for input subsidies (investment and operating credits 
provided by the Agriculture Promotion Bank to low-in come farmers in poor regions, and electricity at 
reduced rates to poor farmers), and a market pr ice support programme for rice.  The minimum farm 
gate price for rice (in husk) was based on production costs and calcul ated annually; and the external 
reference price was derived from data released by the University of Arkansas.  However, the 
minimum farm gate price had been  well below the external referen ce price throughout the period.  
The Ministry of Agriculture and Forestry had also  spent an average KN 86.4 billion (US$8.5 million) 
per year on irrigation.  All support was well below the 10 per cent de minimis  level.   
168. He noted that his Government had previously  established a State-owned enterprise to 
purchase agricultural products at market prices and r esell the goods in the domestic market at a later 
time to stabilize the market.  The ente rprise had already ceased operations.   WT/ACC/SPEC/LAO/5/Rev.1 
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  169. [The representative of Lao PDR confirmed th at it had no agricultural export subsidies. 
He however confirmed that should Lao PDR require the use of agricultural export subsidies, it shall 
avail itself of the agricultural export subsidies pr ovided for developing countries, (including LDCs) 
within the meaning of Article 9.1 (d) and (e) of  the Agreement on Agriculture.  The representative 
further confirmed that Lao PDR would adhere to a ny WTO decision that may be taken in this regard 
in the on-going Doha ne gotiations.  The Working Party took note of these commitments.] 
170. [Lao PDR's commitments on agricultural tariffs and domestic support and export subsidies for 
agricultural products are contained in the Schedul e of Concessions and Commitments on Goods [to be 
filled in to reflect document numbers] annexed to  Lao PDR's draft Protocol of Accession to the 
WTO.] 
- Trade in civil aircraft 
171. In response to a specific question concerning th e current import duty on civil aircraft and 
aircraft parts, the representative of Lao PDR said that the rate on aircraft parts was 10 per cent. 
- Textiles regime 
172. The representative of Lao PDR said that textiles were subject to the same general measures 
applied to other products.  The simple averag e applied import duty on textiles and clothing was 
9.46 per cent.   
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL 
- Industrial property protection 
173. The representative of Lao PDR provided a tec hnical note on the implementation of the 
WTO Agreement on Trade-Related Aspects of In tellectual Property Rights (TRIPS) in document 
WT/ACC/LAO/7/Rev.2, and an Action Plan for the implementation of the TRIPS Agreement in documents WT/ACC/LAO/15/Rev.6 (Table 20).  With the provision of technical assistance and 
national capacity building, the im plementation of the TRIPS Agreem ent would be achieved, at the 
latest by December 2015, according to the action plan .  He added that Lao PDR, as an LDC, intended 
to avail of the special and differential treatment  provisions provided for under the TRIPS Agreement 
and WTO Ministerial Declarations (paragraph 47  of WT/MIN(05)/DEC and IP/C/40 refers).   WT/ACC/SPEC/LAO/5/Rev.1 
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  174. Industrial property protection was previously provided through the Prime Minister's Decree 
No. 06/PM "On Trademarks" of 18 January 1 995 and Regulation No. 466/STEA-PMO "On the 
Registration of Trademarks" of 7 March 2002; Decree No. 01/PM "On th e Protection of Patents, Petty 
Patents (Utility Models) and Industrial D esigns" of 17 January 2002, and Regulation 
No. 322/STEA-PMO "On the Implementation of the Pate nts Decree" of 18 Februa ry 2003.  He further 
noted that Intellectual Property Law No. 08/NA of 24 December 2007 - covering copyright and 
related rights, trademarks, trade secrets, geographi cal indications, industrial designs, patents, petty 
patents, layout designs of integrated circuits, and the protection of plant varieties, had entered into 
force on 14 April 2008.  The 2007 Intellectual Property Law superseded provisions of the above-mentioned decrees and regulations to the extent  that those provisions were incompatible with 
the 2007 Intellectual Property Law.  Based on Member's comments, the 2007 Intellectual Property 
Law had been revised and a new 2011 Intell ectual Property Law had been adopted on 
20 December 2011.  He added that Lao PDR was cu rrently in the process of drafting regulations to 
detail implementation aspects of the 2011 Intellectual Property Law. 
175. A Member noted that Article 2 of the 2007 Intellectual Property Law defined intellectual 
property as a "work of the human mind through inve ntions and creations ha ving economic value and 
benefit in social development".  This Member as ked Lao PDR to explain whether works eligible for 
protection pursuant to the TRIPS Agreement/Berne Convention and meeting the criteria to qualify as 
a patent, trademark or copyright could be deni ed protection under the 2007 Intellectual Property Law 
on the grounds that they did not have economic value or contribute to social development.  In reply, 
the representative said that the definition contai ned in the 2007 Intellectual Property Law set out 
Lao PDR's general policy vision to promote socio- economic development - without the intention to 
limit the rights of holders of Intellectual Property Rights.  He said that the specific criteria to qualify for Intellectual Property Rights protection were provided for in Sections III and V of the 
2007 Intellectual Property Law.  The representative of Lao PDR explained, however, that in the 
2011 Intellectual Property Law the terminology "econom ic value and benefit in social development", 
as part of the definition of an intellectual property, was no longer used.   
- Responsible agencies for policy formulation and implementation 
176. The representative of Lao PDR said that the Depa rtment of Intellectual Property (DIP) in the 
Ministry of Science and Technology (MoST) had overall responsibility for the coordination of the 
implementation of policies on intellectual property.  The functions of the Department of Intellectual 
Property included preparation of legislation, th e formulation of strategic development plans on 
intellectual property, the establishment of a re gistration system, international co-operation, WT/ACC/SPEC/LAO/5/Rev.1 
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  dissemination of information, and receiving petition s and claims from the public and coordinating 
with other agencies to resolve them.  Copyright and related right were under the Copyright Division 
which was, inter alia , responsible for drafting legislation for the management of copyright and related 
rights; notification of information related to copy right and related rights; and the establishment of a 
database.  The IP Dispute Settlement Division also  acted as a forum for receiving complaints and 
could perform mediation to address such complaints .  Lao PDR was also in the process of setting up a 
Geographical Indications Registry under the Trademark Division by December 2012.  The Ministry of 
Science and Technology would coor dinate with other Ministries and provincial authorities depending 
on the subject matter, e.g. the Ministry of Indust ry and Commerce on trademarks and trade secrets, 
the Ministry of Agriculture and Forestry (plant  varieties), and the Ministry of Information, 
Culture and Tourism (copyright and related rights) and other concerned ministries. 
177. The Customs Department at the Ministry of Finance was responsible for measures applied at 
the border to enforce intellectual property rights.  The Economic Police within the Ministry of Public 
Security enforced intellectual property rights within the country.     
- Participation in international intellectual property agreements 
178. The representative of Lao PDR said that Lao PD R had become a signatory to the convention 
establishing the World Intellectual Property Organi zation in 1995, acceded to the Paris Convention 
for the Protection of Industrial Property in 1998, and the Patent Cooperation Treaty in 2006 and the 
Berne Convention for the Protection of Literary an d Artistic Works in March 2012.  Decisions to 
accede to the Rome Convention for the Protection of Performers, Producers of Phonograms, and 
Broadcasting Organizations and the Washington Treaty on Intellectual Property in Respect of 
Integrated Circuits had been deferred due to t echnical capacity limitations.  Lao PDR had signed a 
two-year bilateral agreement with Vietnam on inte llectual property in 2011 and was in the process of 
renewing the bilateral agreement on Intell ectual Property Cooperation with Thailand.   In 1996, 
Lao PDR had signed a two-year bilateral Agreemen t with Thailand on trademarks and other areas of 
intellectual property rights.  The representative of  Lao PDR added that his Government was also 
considering acceding to the Protocol Relating to the Madrid Agreement Concerning the International 
Registration of Marks. 
179. Asked about Lao PDR's intenti ons regarding accession to the International Union for the 
Protection of Plant Varieties (UPOV), and urged to join the WIPO Copyright Treaty, the WIPO 
Performances and Phonograms Treaty, the Gene va Phonograms Convention, and the Brussels 
Convention Relating to the Distribution of Progr amme-Carrying Signals Tr ansmitted by Satellite, the 
representative of Lao PDR noted that the TRIPS Ag reement did not require accession to intellectual  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 69 
 
 
  property treaties and conventions such as the UPOV.   His Government would nevertheless study the 
implications of acceding to the various Agreements.  
- Application of national and MF N treatment to foreign nationals 
180. The representative of Lao PD R stated that the 2007 Intellectual Property Law included 
provisions on MFN and national treatment (Articles 6 and 7) and ensured confor mity with Article 3 of 
the Berne Convention and Article 9 of the TRIPS Agreement.  He also confirmed that Lao PDR 
applied the principle of national treatment in acco rdance with the Paris Convention for the Protection 
of Industrial Property; and MFN treatment consistent  with other internationa l agreements to which 
Lao PDR was a party.  At present, any person with out lawful representation in Lao PDR was required 
to use an accredited representative in Lao PDR to f ile industrial property applications pursuant to 
Article 27 of the 2007 Intellectual Property Law.  The requirement was aimed at protecting the 
interest of the right holder and at facilitating th e right holder's communication with the competent 
State authorities.  The representative of Lao PDR noted that under the 2011 Intellectual Property Law, MFN and national treatment (Article 6) were grante d to all foreign nationals in accordance with the 
provisions of Articles 3 and 4 of the TRIPS Agreement.  
- Fees and taxes 
181. The current fees and charges related to tradem arks, patents, petty patents and industrial 
designs are enumerated in Table 21.   
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights 
182. The representative of Lao PDR said that the 20 07 Intellectual Property Law was based on the 
WIPO model law and the requirements of the TRI PS Agreement.  The Law included provisions on 
copyright and related rights, thereby protecting this subject matter for the first time in Lao PDR.  
Initially, Lao PDR intended to adopt a decree to implement the 2007 Intellectual Property Law by the 
end of 2011 and a Regulation on Copyright and Rela ted Rights was expected by 2012.  However, 
the representative of Lao PDR said that the Govern ment of Lao PDR had instead revised the entire 
2007 Law and adopted a new Intellectual Property Law in December 2011.  In his view, the 2011 
Intellectual Property Law took full account of the WTO TRIPS Agreement, the Berne Convention and WT/ACC/SPEC/LAO/5/Rev.1 
Page 70  
 
  Members' comments.  He added that Lao PDR had acceded to the Berne Convention on 
14 March 2012.  A copyright and related rights information section was established in 2009.  
183. Previously, a Member had noted that the draft of the 2007 Intellectual Property Law appeared 
to fall short of full compliance with the re quirements under the Berne Convention and the 
TRIPS Agreement, and specifically with respect to the rights conferred, registration to receive protection, exceptions and exclusions, the non-inclus ion of scientific works and compilations of data, 
and the definition of related rights.  Moreover, the draft Law had not set forth the term of copyright 
protection for audio-visual works and sound recordin gs.  In reply, the representative of Lao PDR said 
that many of the points raised had been addressed in the promulgated 2007 Intellectual Property Law, including the term of protection (Articles 93 and 94 ), the objects of protection (Articles 74, 75, 77 
and 78), the rights granted (Parts 4 and 5), the term  of protection for audio-visual works and sound 
recordings (Article 94), the requirement to extend protection to scientific works and compilations of 
data (Article 74), and other requirements of the TR IPS Agreement.  He added that the 2007 Law did 
not require the registration of a copyright for prot ection, as works were protected automatically upon 
creation (Article 79).  However, the voluntary notifi cation of works was available in accordance with 
Decision No. 1028/PMO-NAST "On Notifying Informa tion on Copyright and Related Rights" of 
17 June 2009, by which owners of copyright and related rights could voluntarily notify their works 
with the MoST.  This could be useful as evidence in case of violations or disputes. 
184. On the 2007 Intellectual Property Law, a Member  noted that copyright protection was not 
extendable to ideas and requested Lao PDR to am end the 2007 Law (Articles 3.25 and 79) to ensure 
conformity with Article 9.2 of the TRIPS Agre ement.  Lao PDR was also requested to amend 
Articles 3.26, 78(3) and 78(4) of the 2007 Law to in clude unencrypted broadcast s in the definition of 
related rights.  Noting that Article 78 of the 2007 La w appeared to provide protection for the related 
rights of Lao nationals, this Member asked Lao PD R to explain how protecti on would be extended to 
the rights of foreign performers, producers of phonograms and broadcasting organizations 
(Articles 78, 1.2, 1.3, 2.2. and 3.2).  Lao PDR was also requested to explain how it would address 
situations where the term of protection for copyri ght and related rights provided for in its Law was 
inconsistent with or differed from the term extended in an interna tional convention or agreement.  
Lao PDR was further requested to include a more  specific definition of the act of reproduction 
(Article 3.30).  A Member requested Lao PDR to further clarify the provision contained in paragraph 1 of Article 76. 
185. The representative of Lao PDR replied that the de finition of copyright e xplicitly referred to a 
"work", which was understood to be an expression creat ed by the author, in whatever mode, in the  WT/ACC/SPEC/LAO/5/Rev.1 
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  domains of art, literature or science.  The re presentative of Lao PDR noted that under the 2011 
Intellectual Property Law, it was clearly defined th at copyright protection did not extend to ideas.  
The 2011 Intellectual Property Law included unencr ypted broadcasts in the definition of related 
rights, extended protection to the rights of foreign performers, producers of phonograms and broadcasting organizations.  Lao PDR was also requ ested to explain how it would address situations 
where the term of protection for copyright and rela ted rights provided for in its Law was inconsistent 
with or differed from the term extended in an interna tional convention or agreement.  He said that in 
case the term of protection in the 2011 Intellectua l Property Law was inconsistent with the term 
accorded in an international convention or agreemen t to which Lao PDR was a contracting party, the 
term of protection of that inte rnational convention or agreement would prevail.  The 2011 Law also 
included a more specific definition of the act of reproduction and clarify the ineligibility for copyright 
protection (news of the day or miscellaneous fa cts, having character of mere items of press 
information). 
186. Asked to clarify which "works" of "traditiona l art and literature" w ould be eligible for 
copyright protection and whether collective ownershi p of such works was permitted, he said that the 
collective ownership of copyright for traditiona l cultural expressions w as permitted in Lao PDR 
(Articles 83 and 87 of the 2007 Intellectual Property La w).  The collective ownership of copyright for 
traditional cultural expressions aimed at the preser vation of traditional values and moral rights.  
The local community would be considered the "author " of such works.  Traditional art and literature 
were (local or group) traditional compilations of cr eations revealing the way of life of the community, 
the performance was culturally and socially consis tent and transmitted ora lly through generations, 
copied or made similar such as local stories, poe ms, maxims, or proverbs; local songs, dances, or 
music; traditional dance, games, rites and competiti ons; or musical instruments, paintings, drawings, 
sculptures, architectural designs having been created using local materials and equipment.  Individuals 
or entities using works of traditional art and literature  were required to protect the source of the 
traditional performance and preserve its original valu es.  The protection involved moral rights and not 
commercial rights.  Their term of protection ha d not been determined.  According to the 2007 
Intellectual Property Law, as for limitations on co pyright subject to compensation (Articles 95 and 
97), individuals or entities "broadcasting programs with sponsorship" would not be liable for 
obtaining permission from the copyright owner for using published works, but would be liable to paying royalties or remuneration as agreed to the authors, copyright owners, performers, or broadcasting organizations for sound/vi deo recordings.  In reply to a Me mber's concern with regard to 
Articles 95 and 97 of the 2007 Law, the representati ve of Lao PDR noted that the 2011 Intellectual 
Property Law no longer contained such provisions.  WT/ACC/SPEC/LAO/5/Rev.1 
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  187. Lao PDR was also requested to further refine th e definition of "data compilation" (Article 86).  
A Member noted that the 2007 Intellectual Property Law granted performers the right to record and 
reproduce live performances of the performer onto audio-visual discs (Articles 89(3) and 89(4)), 
this provision appeared to be more limited th an the corresponding provision provided for in the 
TRIPS Agreement, Lao PDR was therefore requested  to amend its 2007 Intellectual Property Law to 
ensure full compliance with Article 14(1) of the TRIPS Agreement.  A Member requested further 
clarification as to who would be considered an  investor under the 2007 Intellectual Property Law, 
the representative of Lao PDR replied that under Ar ticle 92 of the Law, an  individual or entity 
providing the funds for the perfo rmance was considered as an "i nvestor".  The representative of 
Lao PDR noted that under the 2011 Intellectual Propert y Law, the provision contained in Article 92 of 
the 2007 Law was no longer contained.  Regarding the term of protection of a work (Article 93(2)), 
Lao PDR was requested to bring the 2007 Law in to compliance with Article 12 of the TRIPS 
Agreement.  Article 12 of the TRIPS Agreement pr ovided for a term of protection of the copyright, 
namely 50 years from the end of the calendar year of authorized publication, or, failing such authorized publication, 50 years from the end of  the calendar year of the making.  Lao PDR was 
further requested to bring its Articles 94(1) and 94 (2) of the 2007 Law into compliance with the term 
of protection available to performers and producers of phonograms according to Article 14(5) of the 
TRIPS Agreement.  A Member sought further clarification as to how the limitations provided for in Articles 96, 97 and 98 of the 2007 La w were consistent with Article  13 of the TRIPS Agreement and 
requested Lao PDR to bring these provisions into compliance with the TRIPS Agreement.  
In response, the representative of Lao PDR said th at, in his view, the 2011 Intellectual Property Law 
had brought these provisions into complia nce with the TRIPS Agreement.   
- Trademarks, including service marks 
188. The representative of Lao PDR said that trademarks were previously protected under the 
Prime Minister's Decree No. 06/PM "On Tr ademarks" of 18 January 1995, Regulation 
No. 466/STEA-PMO "On the Registration of Tradem arks" of 7 March 2002, and the 2007 Intellectual 
Property Law.  Pursuant to the 2007 Intellectua l Property Law, a trademark was defined as a mark 
(i.e. any sign, which could be an image, word, lette r, number, signature, name, colour, form or shape 
of an item, or combination thereof) which could be used to distinguish a good or service from others.  
Applications for registration of a trademark were to be filed with the Department of Intellectual 
Property in the MoST.  The Department processed th e application, entered the approved trademark in 
a national register, and issued a trademark registration certificate.  The registered mark was published in the Official Gazette of the MoST.  The normal timeframe between application and the granting of a 
certificate was six months or less.  The term of protection for a registered trademark was ten years,  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 73 
 
 
  renewable indefinitely for successive periods of ten years.  Applications for renewal should be filed 
six months prior to expiry.  A trademark registration could be cancelled for non-use during a 
continuous period of five years, unless it could be demonstrated that special circumstances had 
prevented the use of the trademark. 
189. Under the 2007 Intellectual Property Law, trad emarks were excluded from registration that 
were (i) not clear and did not identify any product or service; (ii) contrary to national culture, morals 
or public order; (iii) misleading or likely to mislead,  in particular with respect to geographical origin, 
nature or characteristics; (iv) forged or copied; (v) comprising symbols such as national seals, flags or 
emblems, or other symbols closely identified with a nation's culture or heritage; (vi) comprising 
names or bearing the official seals of countries or  governments, international organizations, or 
organizations established by treaties; or (vii) if the ma rk was identical with - or confusingly similar to 
- trademarks or trade names of goods or servi ces which were widely "well-known".  The 2011 
Intellectual Property Law (Article 23) had exte nded the cases of exclusion from the trademark 
registration in line with TRIPS Agreement. 
190. Pursuant to the 2007 Intellectual Property Law, the owner of a trademark already registered 
abroad had the right to claim priority when filin g for registration in Lao PDR.  Registration for 
protection of a trademark was not compulsory in Lao PDR, but the rights of the owner or his/her consent could only be recognized if a trademark had been registered.  Owners of registered 
trademarks had the exclusive right to use the trademar ks, or to authorize others to use them.  He noted 
that the 2007 Intellectual Property Law (Articles 112 to 118) provided for general administrative and 
judicial remedies to owners of registered trademarks  against any infringement of such trademarks.    
191. Responding to specific questions and comments,  he acknowledged that Article 12 of the 
1995 Decree made no reference to marks identical or  confusingly similar to marks that were the 
subject of registration or pending applications ( but not well-known).  Decree No. 06/PM would also 
need to be amended to ensure full compliance wi th Article 15.5 of the TRIPS Agreement regarding 
the provision of reasonable opportunity for petitions  to cancel a registrati on.  He added that 
Articles 16, 23 and 45 of the 2007 Intellectual Propert y Law incorporated the rights conferred to the 
trademark owner by virtue of Article 16.1 of the TRIPS Agreement to prevent the use of "similar 
signs" and to presume confusion where an identical mark was used without authorization.  
Registration of trademarks that were the same as, or similar to, trademarks of any goods (or services) already registered would be denied, even if used on goods not similar to the goods associated with the 
registered mark, unless the new registration was sought by the owner of the registered mark.  The representative of Lao PDR noted that the 2011 Intellectual Property Law maintained the above WT/ACC/SPEC/LAO/5/Rev.1 
Page 74  
 
  provisions of the 2007 Intellectual Property Law.  He added that, in his view, the 2011 Law also 
preserved the exclusive and prior rights of an owne r and covered examination of applications for a 
trademark and cancellation of a registered mark.  
- Geographical indications, including appellations of origin 
192. Having reviewed a draft of the 2007 Intellectual Property Law, a Member noted that the 
provisions relating to geographical indications (G Is) were limited to de finition and duration.  
A Member further requested additional informati on on how Lao PDR intended to provide protection 
for geographical indications, including additional protection for GIs for wines and spirits, and 
addressing situations where the owner of an earlier pr otected trademark would be able to prevent the 
protection or registration of a confusingly sim ilar and later-in-time geographical indication in 
accordance with Articles 16.1 and 24.5 of the TRIPS Agreement. 
193. The representative of Lao PDR replied that provisions for the protection of geographical 
indications had been included in the Intellect ual Property Law No. 08/NA of 24 December 2007.  
Article 19 of the 2007 Intellectual Property Law est ablished the requirements for the protection of a 
geographical indication.  The term of protectio n of a registered geographical indication was 
permanent, but third parties had the right to seek ca ncellation of a GI registration, if the registration 
had been made in bad faith as per Articles 57, 115, 116 and 117 of the 2007 Intellectual Property 
Law.  The representative of Lao PDR noted that the 2011 Intellectual Property Law maintained the 
above provisions of the 2007 Intellectual Property La w.  He added that, in his view, the 2011 Law 
also included further provisions to ensure compliance with Articles 16.1 and 24.5 of the 
TRIPS Agreement.  Lao PDR had set up a committee to supervise a project on the establishment of 
potential geographical indications under the Ministry of  Agriculture and Forestry in 2007.  He added 
that, in 2009, Lao PDR established a geographical indications registration unit under the Department 
of Intellectual Property. 
194. A Member noted that, for the definition of GIs, Article 3.17 and the last paragraph of 
Article 19 of the 2007 Intellectual Property Law need ed to be read in conjunction.  The Member 
therefore suggested Lao PDR to provide the complete  definition in Article 3.17 in order to avoid any 
confusion.  The representative of Lao PDR replie d that, in his view, the 2011 Intellectual Property 
Law provided a complete definition of GIs.    
195. In response to specific questions on the 2007 Law regarding the possible co-existence of 
protected geographical indications and trademar ks and on the safeguards in place to ensure 
compliance with Article 16 of the TRIPS Agreem ent, the representative of Lao PDR said that a  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 75 
 
 
  geographical indication could not be registered if th e indication was "identical or similar to protected 
trademarks that lead to misunderstanding as to th e origin of the said goods" (Article 25.3 of the 
2007 Intellectual Property Law).  The geographical indi cation, however, could be registered if its use 
would not mislead the consumer.  Article 100 (par agraph 1.6) of the 2007 Law barred the owner of a 
geographical indication from preventing the use of th e same or similar trademark where the trademark 
acquired protection before the date of filing of  a registration application for the geographical 
indication.  He added that Lao PDR would not pr ejudice the eligibility for or the validity of the 
registration of a trademark, or the right to use a trademark, on the basis of such trademark was 
identical with or similar to a geographical indica tion, in cases when the trademark was registered in 
good faith (i) before the date of entry into for ce of the Law on Intellectual Property Rights; or 
(ii) before the geographical indication was protected  in its country of origin.  Foreign geographical 
indications that were not protected in the foreign jurisdiction could not be registered in Lao PDR.  
He added that comments with regard to WTO ju risprudence (WT/DS/174/R) and the safeguards for 
compliance with Articles 16 and 17 of the TRI PS Agreement were taken into account in the 
2011 Intellectual Property Law.  He further not ed that the 2011 Intellectual Property Law had 
incorporated a provision to allow owners of a re gistered trademark or third parties to object the 
registration of a geographical indication.   In response to a specific question on the registration of 
later-in-time geographical indications, the repr esentative of Lao PDR noted that pursuant to 
Article 25.5 of the 2011 Intellectual Property Law, a geographical indication coul d not be registered if 
the indication was identical with or similar to a protected trademark where the use of the indication 
would lead to misunderstanding or confusi on as to the origin of the said good.. 
- Industrial designs 
196. The representative of Lao PDR said that Article 29 of Decree No. 01/PM "On the Protection 
of Patents, Petty Patents (Utility Models) and Industrial Designs" of 17 January 2002 provided 
protection for new industrial designs.  The Decr ee covered the protection of textile designs 
(Article 32), but did not distinguish new from origin al designs.  Provisions on industrial designs had 
also been included in the 2007 Intellectual Pr operty Law.  The 2007 Intellectual Property Law 
superseded provisions of the Decree where they were  incompatible with the 2007 Intellectual Property 
Law.  The representative of Lao PDR noted that the 2011 Intellectual Property Law, adopted in 
December 2011, replaced the 2007 Intellectual Property Law. 
197. Having reviewed a draft of the 2007 Law, whic h appeared to be restating provisions in 
Decree No. 01/PM, a Member noted that Lao PDR woul d seem to be protecting industrial designs for 
five years, less than the ten-year term of pr otection provided for under the TRIPS Agreement.  WT/ACC/SPEC/LAO/5/Rev.1 
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  In reply, the representative of Lao PDR said that in accordance with Article 48 of the 2007 
Intellectual Property Law, the term of protection fo r industrial designs was 15 years, from the date of 
filing the application.  Application procedures for the registration of industrial designs were provided 
for in Section III of the 2007 Intellectual Property Law.   
- Patents 
198. The representative of Lao PDR said that patents we re granted for inventions considered new, 
involving an inventive step, and industrially applicable pursuant to Decree No. 01/PM "On the 
Protection of Patents, Petty Patents (Utility Mode ls) and Industrial Designs " of 17 January 2002, 
Regulation No. 322/STEA-PMO of 18 February 2003,  the 2007 Intellectual Property Law, and the 
2011 Intellectual Property Law.  He noted that th e 2007 Intellectual Property Law superseded the 
provisions of Decree No. 01/PM and Regulation No . 322/STEA-PMO, which were incompatible with 
the 2007 Intellectual Property Law.  In accordance with Article 21 of the 2007 Intellectual Property 
Law, discoveries; scientific theories and mathemat ical methods; schemes, rules or methods for doing 
business; the performance of pure mental acts or pl aying games; methods for the treatment of the 
human body or animals; and inventions contrary to public order or national cultural morality were not 
recognized as patentable subject matter.  He noted that this provision was in line with Article 27.2 of 
the TRIPS Agreement.  In response to a specific  question, he confirmed that non-biological or 
microbiological processes were eligible for patent  protection.  Pursuant to the 2007 Intellectual 
Property Law, the term of protection for a patent was 20 years without renewal (ten years for a petty 
patent with a possible extension of two year s).  The requirements of Article 29 of the 
TRIPS Agreement - conditions on patent appli cants - were covered by Article 30 of the 
2007 Intellectual Property Law.  The representativ e of Lao PDR noted that the 2011 Intellectual 
Property Law, adopted in December 2011, superseded  the 2007 Intellectual Property Law.  He stated 
that the 2011 Intellectual Property Law also contained the provisions of the 2007 Intellectual 
Property, as described above.  He also noted that further details and provisi ons on patent protection 
had been included in the new Law.   
199. The rights conferred to the patent owner - in cluding the right to assign, transfer by succession 
and to conclude licensing contracts - were pr ovided through Articles 45, 101 and 108 of the 
Intellectual Property Law and were, in his opin ion, in conformity with Article 28 of the 
TRIPS Agreement.  Exceptions to the exclusive ri ghts conferred by a patent were laid down in 
Articles 53 and 54 of the Law.  Responding to a comme nt that earlier provisions had appeared to be 
attempting to provide for a compulsory licence wh ere the provisions of Article 5(A)(4) of the 
Paris Convention applied, although this was not clea r from the text, he said that Article 54 of the  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 77 
 
 
  2007 Law related to non-use or insufficient exploita tion of a patented invention for three years after 
the patent had been granted.   
200. The representative of Lao PDR said that Artic le 63 of the 2011 Intellectual Property Law 
concerned compulsory licensing of the use of patent s or petty patents in cases of national emergency 
or urgent need - for non-commercial purposes.  The permit would determine the limitations on use 
and stipulate the compensation to the right owner.  The owner could challenge the issue of the licence 
and the compensation offered within 60 days.  Hence, such compulsory licence would be 
non-exclusive and define the scope, function, time lim it, adequate compensation, and the condition of 
payment as provided for in the Paris Convention.   
201. The representative of Lao PDR added that in a ddition to Section VII of the 2011 Intellectual 
Property Law, some aspects of the TRIPS Agreement relating to patents had been addressed further in 
the Civil Procedure Law (Articles 3 and 20), in pa rticular, regarding the opportunity for judicial 
review of decisions to revoke or forfeit a patent (Article 32 of the TRIPS Agreement), the conditions 
for providing limited exceptions to the rights confe rred (Article 30 of the TRIPS Agreement), and to 
allow reversal of the burden of proof in process patent infringement actions in the instances foreseen 
in Article 34 of the TRIPS Agreement.   
- Plant variety protection 
202. The representative of Lao PDR said that provi sions on plant variety protection had been 
included in the 2011 Intellectual Property Law.  The requirements for a new plant variety to be 
protected were novelty, distinctness, uniformity, st ability and denomination.  The term of protection 
of new plant varieties was, for trees and vines, 25 years from the date of grant of the breeder's right, and for other varieties of plants, 20 years from the date  of grant of the breeder's right.  He added that 
under the 2011 Intellectual Property Law, domestic  and foreign natural a nd legal persons were 
entitled to apply for plant variety rights.   
203. Asked whether Lao PDR would consider becoming a UPOV member, the representative of 
Lao PDR said that Lao PDR would focus its limited capacities on implementing TRIPS requirements, as it understood that the TRIPS Agreement did not require membership of the UPOV Convention.  He added that, in his view, the 2011 Intellectual Property Law was substantially in compliance with 
the UPOV Convention.   WT/ACC/SPEC/LAO/5/Rev.1 
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  - Layout designs of integrated circuits 
204. The representative of Lao PDR said that prot ection of layout designs (topographies) of 
integrated circuits were provided for in Articles 3, 12, 18, 24, 34, 52, 58, 65 and 117 of the 2011 
Intellectual Property Law.  The term of protection of layout designs (topographies) of integrated circuits was 12 years.  A decision to accede to the Washington Treaty on Intellectual Property in 
Respect of Integrated Circuits had been de ferred due to technical capacity limitations.  
- Requirements on undisclosed information,  including trade secrets and test data 
205. The representative of Lao PDR said that Artic les 3.18, 20, 54, 60 and 61 of the 2011 
Intellectual Property Law provided for the protection of undisclosed information in line with Article 39.2 and 39.3 of the TRIPS Agreement.  To be protected as a trade secret, information should 
meet all the following requirements: (i) be secret in the sense that it was not known among or readily 
accessible to persons within the circles that normally dealt with the kind of information in question, 
such as a formula or production process; (ii) have commercial value; and (ii) have been subject to 
reasonable steps under the circumstances, by the person la wfully in control of the information, to keep 
it secret.  Trade secrets were protected for an unlimited period or until their secrecy was lost. 
206. Article 104 of the 2005 Criminal Law cont ained a general provision making any person 
disclosing confidential matters having come to his/her knowledge in the performance of his/her 
profession or duty, and thereby causing damage to the owner of the confidential information, liable to 
imprisonment of three to six months and a fine ranging from KN 50,000 to KN 500,000.   
- MEASURES TO CONTROL ABUSE OF INTELLECTUAL PROPERTY RIGHTS 
207. The representative of Lao PDR said that measures to control abuse of intellectual property 
rights had been included in Decree No. 01/PM "O n the Protection of Patents, Petty Patents 
(Utility Models) and Industrial Designs" (Articles 20 and 21), Decree No. 06/PM "On Trademarks", 
and Decree No. 15/PM "On Trade Competition".  He  noted that the 2007 Intellectual Property Law 
superseded the provisions contained in Decree s No. 01/PM, No. 06/PM and No. 15/PM in cases 
where they were incompatible with the 2007 In tellectual Property Law.  The representative of 
Lao PDR noted that, in his view, the 2011 Intellect ual Property Law, adopted in December 2011, was 
fully in line with the requirements in the TR IPS Agreement on the control of anti-competitive 
practices in contractual licenses.  WT/ACC/SPEC/LAO/5/Rev.1 
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  - ENFORCEMENT 
208. The representative of Lao PDR said that, in add ition to the existing legislation on intellectual 
property protection (industrial property; copyright a nd related rights), provisions relevant to the 
enforcement of IPRs could be found in the Civil Procedure Law No. 02/NA of 17 May 2004, the Criminal Procedure Law No. 01/NA of 15 Ma y 2004, the Penal Code Law, the Law No. 03/NA 
"On Judgement Enforcement" of 15 May 2004, the Law "On the People's Courts", and the Customs 
Law No. 04/NA of 20 December 2011.  Right holders could opt for administrative measures or civil 
or criminal procedures to protect their rights, and an y decision of the trial court could be appealed to a 
higher court.  He added that the 2011 Intellectua l Property Law contained provisions relevant to 
enforcement procedures and remedies, including administrative, civil and criminal procedures.  He further added that Ministerial Instruction No . 1970/MOF on Customs Protection of Intellectual 
Property was issued in September 2011 to provide for border measures that were in compliance with 
Section 4 of the TRIPS Agreement.  
- Civil judicial procedures and remedies 
209. The representative of Lao PDR said that right hol ders could evoke civil judicial procedures 
pursuant to the 2011 Intellectual Property Law (Section VII) and the Civil Procedure Law 
(Articles 78, 83, 92 and 93).  In response to a sp ecific question, the representative of Lao PDR said 
that any party had equal opportuniti es to be heard in a court heari ng on evidence presented either by 
the judge or by any of the parties.  A judge coul d order the production of evidence to substantiate a 
party's claims according to Article 20 of the Civil Procedure Law, and Article  76 of the Law provided 
for additional remedies including the seizure an d destruction of infringing goods, materials and 
implements.  In response to Members' concerns , the representative of Lao PDR said that the 
2011 Intellectual Property Law specifically included the destruction of infringing goods, as an additional remedy.  In his view, the 2011 Law was therefore fully compliant with Articles 46 and 59 
of the TRIPS Agreement.  In addition, he noted that the 2011 Law included provisions on civil 
judicial procedures and remedies in line with the TRIPS Agreement.  
210. A Member previously noted that certain re quirements of the TRIPS Agreement were not 
clearly reflected in the existing legislation.  In reply, the representative of Lao PDR, however, stated 
that certain requirements had been reflected, name ly:  the ability of a judge to issue orders or 
injunctions enjoining a party from infringing intellect ual property rights (Article 71 of Civil Procedure 
Law No. 02/NA, dated 17 May 2004); order the paym ent of adequate damages (Articles 83, 91 
and 101 of Law No. 01/NA "On Contract and Tort",  dated 8 December 2008); allow the right holder 
to recover enforcement costs, lost profits and/or  statutory damages (Articles 26 and 33 of Court Fee WT/ACC/SPEC/LAO/5/Rev.1 
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  Law No. 07/NA, dated 27 December 2006 and Article  35 of Judgment Enforcement Law No. 04/NA, 
dated 25 July 2008); indemnification of the defenda nt, including attorney's fees, in the event of 
litigation abuse by plaintiffs; and ensuring that administrative remedies would conform to these 
principles.  He further noted that provisions exemp ting public authorities and officials from liability in 
connection with the administration of IP laws where actions were taken or in tended in good faith and 
within the scope of their authority were containe d in Article 83 of Law No. 1/NA "On Contract and 
Tort", dated 8 December 2008.   
- Provisional measures 
211. The representative of Lao PDR stated that judges could grant temporary restraining orders 
and provisional relief to preven t infringement and to preserve evidence according to Articles 76 
and 119 of the Civil Procedure Law (for civil cases) and Articles 59 to 68 of the Criminal Procedure 
Law (for criminal cases).  The customs authority had the right to inspect and seize infringing goods 
(Article 76.10 of the Customs Law and Article 124 of  the 2007 Intellectual Property Law).  He further 
noted that Article 76.10 of the Customs Law a nd Article 124 of the 2007 Intellectual Property Law 
had been revised by Ministerial Instruction No . 1970/MOF on Customs Protection of Intellectual 
Property (which was issued in September 2011), to ensure compliance with Section 4 of the 
TRIPS Agreement.  Asked about indemnificati on of the defending party in case of unjustified 
provisional relief, he said that Articles 83, 91 and 101 of the Law No. 01/NA "On Contract and Tort", 
dated 8 December 2008, allowed defendants to protect their rights and legitimate interests.  He noted 
that, in his view, the 2011 Intellectual Property Law had brought the provisions on provisional 
measures in full compliance with the TRIPS Agreement. 
- Administrative procedures and remedies 
212. The representative of Lao PDR said that administrative procedures and remedies were 
previously established pursuant to the Decree "On Trademarks", the Decree "On the Protection of 
Patents, Petty Patents (Utility Models) and Indust rial Designs" and the 2007 Intellectual Property 
Law. Currently, the administrative procedur es and remedies had been governed by the 
2011 Intellectual Property Law and the Petition Ha ndling Law No. 07/NA, dated 9 November 2005.  
The representative of Lao PDR said that the 2011 Inte llectual Property Law provided the possibility to 
request administrative action with the Ministry of Science and Technology (MoST) or Customs 
Department (for border measures).  He further not ed that the administrative actions with border 
measures would be handled under Ministerial Inst ruction No. 1970/MOF "On Customs Protection of 
Intellectual Property" and the actions with MoST re lied on the general provisions of the 2005 Petition 
Handling Law.  WT/ACC/SPEC/LAO/5/Rev.1 
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  213. Administrative officials had the authority to issu e injunctions to order a party to desist from 
an infringement and to prevent infringing goods  from entering the channels of commerce.  
For example regarding trademarks, the Department  of Intellectual Property (DIP) could issue a 
warning by administrative procedure to individuals  and legal entities using trademarks without the 
consent of the owner or otherwise pursuing the u se of trademarks illegitimately.  The DIP would 
invite the parties concerned to discuss the allege d violation and find a mutually agreeable solution 
(acceptable also to DIP).  If no Agreement was r eached, the matter could be referred to the Economic 
Dispute Resolution Office under the Ministry of Justice or to the courts.   
214. He added that Lao PDR had a tradition to se ttle trademark disputes through administrative 
channels.  Eight cases involving claims of trademark infringement had been settled thus far; seven of 
them through DIP, and one case by the Economi c Dispute Resolution Office.  Although the 
settlements needed to be "certified" by a court to be legally enforceable, he considered the 
administrative procedure generally effective.  He stressed that the complainant could bring an infringement case directly before a court and was not required to invoke the administrative procedure.   
- Special border measures 
215. The representative of Lao PDR said that th e 2005 Customs Law and its implementing 
Decree No. 362/PM included provisions for intell ectual property rights protection at the border.  
Right holders would request the Department of Inte llectual Property in the MoST to take action, and 
the Department coordinated with the Customs Depart ment in the application of border measures.  
Pursuant to Article 76.10 of the Customs Law, the customs authorities could inspect and seize 
infringing goods.   
216. In response to specific questions on whethe r the Customs Law and Decree No. 362/PM 
allowed for inspection and seizure of both impor ted and exported infringing goods, suspended the  
release of counterfeit or pirated goods, and whether further provisions were being contemplated, he 
noted that provisions on special border measures had also been included in Article 124 of the 
2007 Intellectual Property Law which authorized border officials to inspect, seize and impound infringing imported or exported goods.  Articles 129 through 135 of the Intellectual Property Law 
elaborated the applicable sanctions.  The representa tive of Lao PDR noted that Ministerial Instruction 
No. 1970/MOF on Customs Protection of Intellectua l Property (issued in September 2011) covered 
Articles 51 through 60 of the TRIPS Agreement.  He  further said that the 2011 Intellectual Property 
Law included provisions in line with Section 4 of th e TRIPS Agreement.  He also added that a new 
Customs Law had been adopted in December 2011.   WT/ACC/SPEC/LAO/5/Rev.1 
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  - Criminal procedures 
217. The representative of Lao PDR said that the 2011 Intellectual Property Law and the 
2005 Criminal Law allowed recourse to criminal pr oceedings in case of infringement of intellectual 
property rights in accordance with Criminal Proce dure Law.  Penalties were stipulated in the 
2011 Intellectual Property Law and in the 2005 Crimin al Law.  The representative of Lao PDR noted 
that the 2011 Intellectual Property Law also allo wed recourse to criminal proceedings in case of 
infringement of intellectual property rights - in  the form of imprisonment and fines.   
218. Asked to explain how existing legislation complie d with Article 61 of the TRIPS Agreement, 
he added that the 2007 Intellectual Property La w (Article 134) included sanctions against 
infringement of all intellectual property rights.  Pe nalties were in the form of imprisonment ranging 
from three months to two years, and fines between  KN 0.5 million and KN 5 million.  He added that 
under the 2011 Intellectual Property Law, adopt ed in December 2011, fines ranged between 
KN 0.5 million and KN 10 million.   
VI. POLICIES AFFECTING TRADE IN SERVICES 
219. The representative of Lao PDR said that servi ces accounted for a quarter of all trade and 
around 26 per cent of Lao PDR's GDP in 2009.  The public sector had traditionally been the principal 
services supplier.  The main services sectors we re wholesale and retail trade, followed by 
transportation, storage, communication and financia l services.  Tourism was an important source of 
export revenue. But with market-oriented reforms and privatization the private sector was gaining 
prominence in services sectors, such as: computer, courier, telecoms, construction, distribution, 
education, environment, insurance,  banking and tourism.  He added that services exports had grown at 
about 6.6 per cent annually since 1990 while the grow th in services exports was largely triggered due 
to a significant expansion in the tourism industry.  He noted that there was currently no data available 
to assess the growth of the specific services sectors.  Public suppliers continued to dominate the 
following services sectors:  hospitals, water supplies,  electricity distribution, and postal services.  
220. Legislative developments had been made in va rious sectors, including:  the adoption of the 
Law "On Postal" (2004); the Law "On Tourism"  (2005); the Law "On Civil Aviation" (2005); 
the Law "On Health Care" (2005); the Law "O n Accounting" (2007 Amendment); the Law 
"On Education" (2007 Amendment); the Law "O n Media" (2008); the Law "On Water Supply" 
(2009); the Law "On Construction" (2008); the re vised Law "On Telecommunications" (2011); the 
revised Insurance Law (2011); the Law "On Lawyers"  (2011); and, the Law "On Electricity" (2011).  
The legal framework and the regulatory capacity for several service sections, such as banking was still  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 83 
 
 
  being developed.  Ministries and agencies responsible  for services included the Ministries of Planning 
and Investment; Public Works and Transport; Jus tice; Finance; Health; Education and Sports; 
Information, Culture and Tourism; Agriculture and Forestry; Industry and Commerce; Energy and 
Mines; and Labour and Social Welfare; Science and Technology; Natural Resources and Environment; Post, Telecommunication and Communica tion and the Bank of Lao PDR.  The Ministry 
of Planning and Investment coordinated ser vices negotiations under the ASEAN Framework 
Agreement on Services, whereas the Ministry of  Industry and Commerce had overall responsibility 
for trade in services issues  as they arose in the WTO.  Followi ng the adoption of Decree No. 363/PM 
on the Notification and Enquiry of Trade Related Information, dated 19 August 2010, and Decision 
No. 0349/MOIC.FTPD on the GATS Enquiry Point,  dated 22 February 2011, his Authorities 
established the GATS Enquiry Point in the Foreign Trade Policy Department of the Ministry of 
Industry and Commerce.  Lao PDR submitted a copy of the legislation to the Working Party.  
The GATS Enquiry Point could be contacted at: 
Foreign Trade Policy Department 
Ministry of Industry and Commerce PO Box 4107, Vientiane Capital, Lao PDR Tel:   +85621-450065 
Fax:   +85621-450066 
Website: www.laoftpd.com Email: gats.enquiry@laoftpd.com 
221. He noted that investment in service sectors were  governed by the new investment legislation, 
i.e. Law No. 02/NA "On Investment Promotion" and its Implementing Decree.  The Business Law No. 03/94/NA of 18 July 1994, which had reser ved certain activities for Lao nationals, notably 
services incidental to forestry or manufacturing, retail services, clerical or secretarial services, tourist 
guides, road transport services, teaching the Lao language, security guard services, building cleaning 
services and postal services had been replac ed by the Enterprise Law No. 11/NA of 
9 November 2005, which aimed at providing foreign and domestic investors an opportunity to conduct businesses on an equal footing and retained only certain restrictions related to cultural 
sensitivity, for example, tourist guides.  However, the Land Law No. 04/NA of 21 October 2003 
stipulated that foreign nationals or juridical persons were not entitled to  own land but could own 
premises or lease land.  Pursuant to the Labour La w No. 06/NA, foreign investors were encouraged to 
give priority to Lao nationals in recruitment.  Foreign employees should be no more than 10 per cent 
of the unskilled workforce or 20 per cent of th e skilled employees, and enterprises were urged to 
upgrade the skills of local employees.  In response to  a question, he confirmed that the encouragement 
to give priority to Lao nationals in recruitmen t was neither an economic need test (ENT) nor a 
potential barrier to investment. WT/ACC/SPEC/LAO/5/Rev.1 
Page 84  
 
  222. In response to a specific question on the restric tion of tour guide services, the representative 
of Lao PDR said that tour guides played an important role in preserving Lao PDR's long history and 
culture, which had been often misunderstood or misl ed due to the similarities with its neighbouring 
countries.  Therefore, the 2006 Tourism Law specifically required that tour guides must be Lao citizens.  He confirmed that no other service sectors in which Lao PDR had made market access 
commitments had cultural sensitivity restrictions. 
223. Foreign investors could also open representative offices or branches (Article 48 of Law 
No. 02/NA "On Investment Promotion" and Ar ticle 35 of the Enterprise Law No. 11/NA).  
This, however, did not obviate the standard regist ration requirements in accordance with applicable 
laws and regulations.   
224. In legal services, pursuant to the 2011 Law on Lawyers (formerly referred to as the Law on 
Bar Association), foreign lawyers were not allowed to practice Lao laws or represent clients in front 
of Lao PDR's courts.  However, they could practi ce international laws and the laws of their home 
country provided that they met the requirements as set out in the Law on Lawyers. 
225. Lao PDR was preparing for the mutual rec ognition of professional qualifications in the 
framework of a Mutual Recognition Arrangement  (MRA) with other members of ASEAN.  
Seven MRAs had been concluded by December 2009 in accountancy services, architectural services, 
engineering services, nursing services, medical pr actitioners, dental practitioners, and surveying 
qualifications. 
226. The banking system was under the supervision of BOL and regulated by Law No. 03/NA 
"On Commercial Banks" and the Implementing Decr ee No. 275/PM.  The Lao Securities Exchange 
(LSX) was established on 10 October 2010 and ha d become operational since January 2011.  
Law No. 11/90/NA "On Insurance" and its impl ementing decree governed the insurance sector.  
The Insurance Law No. 06/NA had been amended and adopted in December 2011.  The insurance 
market remained narrow whereby mo st insurance coverage applied to  non-life insurance products and 
only a small proportion of the Lao population ha d insurance coverage.  A monopoly on insurance 
services granted to Allianz General Laos, a joint venture with 51 per cent foreign ownership, had 
expired in 2002.  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 85 
 
 
  227. Although some natural monopolies existed, particularly in the supply of public services, a 
number of sectors had been opened to competition, including telecommunication, banking, insurance, 
air and road transport, water supply, and hospital services sectors.  La Poste du Lao had retained a 
monopoly on the supply of postal services related to  postal savings, national defence and national 
security, but all other postal services, including co urier services, were open to competition.   
228. The Telecommunications Act No. 02/NA of 10 April 2001 provided the legal framework for 
telecommunication services.  The Ministry of Post, Telecommunication and Communication provided 
regulatory oversight for this sector.  Domestic and international fixed line te lephone services were no 
longer a monopoly for the Lao Telecommunications Company, a joint venture with 49 per cent foreign ownership.  Five companies provided mob ile telephony services, and there were no specific 
limitations on operators of e nhanced and value-added services, including internet services.  
The representative of Lao PDR added that the 2001 Telecommunication Act had been revised and the 
new Law No. 09/NA was adopted in December 2011. 
[Lao PDR submitted an initial offer on specific comm itments in services in October 2007 (document 
WT/ACC/SPEC/LAO/3) and revised offers in June 2008, June 2009, and July 2010 (document 
WT/ACC/SPEC/LAO/3/Rev.3)] 
VII. TRANSPARENCY - Publication of information on trade 
229. The representative of Lao PDR said that Decr ee No. 363 "On the Notification and Enquiry of 
Trade-Related Information" of 19 August 2010 in cluded provisions for prior comment and public 
review of proposed SPS and TBT regul ations and legislation.  Purs uant to Article 37 of Edict 
No. 02/OPR "On the Making of Legal Acts" of 20 October 2003, all laws of  general application 
(except for administrative acts, such as appointme nt of a Director General) were subject to 
consultations with line ministries and with the gene ral public though financial constraints might limit 
the extensiveness of the consultations.  The Edic t also provided for the publication of laws and 
regulations in the Official Gazette and/or dissemination through mass media.  A Member encouraged Lao PDR to consider enacting a broader regulator y review process, to foster greater overall 
transparency.  In response, the representative of Lao PDR said that Edict No. 02/OPR would be 
upgraded to the Law "On the Making of Legal Acts ", which was expected to be passed by the 
National Assembly in June 2012.  The new Law wo uld address the broader transparency requirements 
in legislative process.  It would also enhance the publication of the Official Gazette of the WT/ACC/SPEC/LAO/5/Rev.1 
Page 86  
 
  Government.  As it required intensive internal c oordination and was financ ially demanding, Lao PDR 
requested additional time to make the Official Gazette fully operational.  
230. [The representative of Lao PDR confirmed that, upon accession, Lao PDR would fully and 
promptly implement Article X of the GATT 1994, Article III of the GATS, Article 63 of the TRIPS Agreement, and other transparency provisio ns in the WTO Agreements requiring notification 
and or publication.  He further confirmed that no law, regulation, judicial decision, administrative 
rulings, or other measures of genera l application at any level of gove rnment, pertaining to or affecting 
trade in goods, services and TRIPS would become e ffective prior to its publication in the Official 
Gazette.  The publication of such laws, regulations  and other measures would include the effective 
date of these measures and list the products and/or  services affected by the particular measure.  
The Working Party took no te of these commitments.] 
[The representative of Lao PDR confirmed that, upon accession, Lao PDR would promptly implement 
Article X of the GATT 1994, Article III of the GATS,  Article 63 of the TRIPS Agreement, and other 
transparency provisions in the WTO Agreements requi ring notification and publication.  He further 
confirmed that no law, regulation, judicial deci sion, administrative rulings, or other measures of 
general application, at any level of government, pe rtaining to or affecting trade in goods, services and 
TRIPS, except for laws, regulations and other meas ures involving national emergency or security, or 
for which publication would impede law enforcement, would become effective prior to its publication 
in the Official Gazette or websites.  The obligati on to establish the official Gazette and the principle 
that any laws became effective only after its publication were established under the Law "On the 
Making of Legal Acts".  Lao PDR, therefore, took the commitment to establis h the Official Gazette 
within three years after accession.  The publicati on of such laws, regulations and other measures 
would include the effective date of these measu res.  The Working Party took note of these 
commitments.] 
- Notifications 
231. The representative of Lao PDR confirmed that, at th e latest within six months of the entry into 
force of the Protocol of Accession, Lao PDR woul d submit all initial notifications required by the 
WTO Agreement.  Any laws, regulations, or other measures subsequently enacted by Lao PDR, and 
which were required to be notified pursuant to the WTO Agreement, would also be notified in a time 
and manner consistent with WTO requirements.  Th e Working Party took note of these commitments.  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 87 
 
 
  VIII. TRADE AGREEMENTS 
232. The representative of Lao PDR said that Lao PDR had joined ASEAN and the ASEAN Free 
Trade Area (AFTA) in 1997.  By implementing the AFTA Common Effective Preferential Tariff 
scheme, later renamed ASEAN Trad e in Goods Agreement (ATIGA), du ties on imports into Lao PDR 
from other ASEAN members would set to fall to zero, or maximum 5 pe r cent, on nearly 99 per cent 
on HS 2007.  For goods on the "Sensitive List" (203 tariff lines), Lao PDR would eliminate the duties 
by 2015, or in some cases by 2018.  Lao PDR had included 464 tariff line items on the "General 
Exemption List", thus excluded from any reduction co mmitment.  He estimated that about 60 per cent 
of Lao PDR's imports would be c overed when AFTA had been fully implemented.  Lao PDR was also 
a member of the ASEAN Framework Agreement on Services (AFAS) and the ASEAN Investment Area Agreement, later renamed ASEAN Comprehensive Investment Agreement (ACIA).  Free Trade 
Agreements with ASEAN dialogue partners (Chi na, India, Japan, Korea, as well as the Closer 
Economic Relations (CER) Agreement w ith Australia and New Zealand) were in force.  He noted that 
the ASEAN-Japan and ASEAN-India negotiations in services were expected to be concluded by the 
end of 2012.  
233. Lao PDR had signed bilateral tr ade and economic cooperation ag reements with Argentina, 
Belarus, Cambodia, China, the European Union,  India, Kuwait, Malaysia, Mongolia, Myanmar, 
Democratic People's Republic of Korea, the Russian  Federation, Thailand, Turkey, the United States, 
and Viet Nam.  Lao PDR was also a party to the Asia Pacific Trade Agreement, together with 
Bangladesh, China, India, Republic of Korea, a nd Sri Lanka.  Lao PDR be nefited from preferential 
access under the General System of Preferences acco rded to LDCs by both developed and developing 
countries.  
234. The representative of Lao PDR confirmed that his Government would observe the relevant 
provisions of the WTO Agreement, including Article XXIV of the GATT 1994, the 1979 GATT 
Decision on Differential and More Favourable Treat ment, Reciprocity and Fuller Participation of 
Developing Countries (Enabling Clause) and Article  V of the GATS in its trade agreements and 
would ensure that the applicable provisions of th e WTO Agreements for notification, consultation, 
and other requirements concerning free trade areas,  customs unions and other preferential trade 
arrangements, of which Lao PDR was, or may become, a Member, were met from the date of 
accession.  The Working Party took note of these commitments. WT/ACC/SPEC/LAO/5/Rev.1 
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  CONCLUSIONS 
235. The Working Party took note of the explanati ons and statements of Lao PDR concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the commitments 
given by Lao PDR in relation to certain specific ma tters which are reproduced in paragraphs […].  
The Working Party took note that these commitments  had been incorporated in paragraph 2 of the 
Protocol of Accession of Lao PDR to the WTO. 
236. Having carried out the examination of the foreign trade regime of Lao PDR and in the light of 
the explanations, commitments and concessions made  by the representative of Lao PDR, the Working 
Party reached the conclusion that Lao PDR be invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article XII.  For this purpose, the Working Party has prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and 
takes note of Lao PDR's Schedule of Concess ions and Commitments on Goods (document 
WT/ACC/LAO/…/Add.1) and its Schedule of Specific Commitments on Services (document WT/ACC/LAO/…/Add.2) that are annexed to the Protoc ol.  It is proposed that these texts be adopted 
by the General Council when it adopts the Report.  When the Decision is adopted, the Protocol of 
Accession would be open for acceptance by Lao PD R which would become a Member thirty days 
after it accepts the said Protocol.  The Working Part y agreed, therefore, that it had completed its work 
concerning the negotiations for the accession of La o PDR to the Marrakesh Agreement Establishing 
the WTO.   WT/ACC/SPEC/LAO/5/Rev.1 
 Page 89 
 
 
  ANNEX 
Laws, Regulations and Other Information Pr ovided to the Working Party of Lao PDR 
- Law No. 5/95/NA "On the Bank of the Lao PDR" of 14 October 1995; 
- Decree No. 95/PM "On the Bank of Lao" of 22 June 1993; - Regulation No. 02/BOL "On Commercial Banks and Financial Institutions' Capital Adequacy 
Under Supervision by the Bank of the Lao PDR" of 15 January 1996; 
- Regulation No. 04/BOL "On Protecting Soundn ess Practices of the Commercial Banks and 
Financial Institutions which are Under the S upervision of the Bank of the Lao PDR" of 
15 January 1996; 
- Additional Instruction No. 01/BOL "On Implemen tation of Some Articles of the Instruction 
No. 02/BOL of 29 September 2003" of 5 February 2004; 
- Regulations No. 08/BOL "On Foreign Currency Exposure" of 7 May 1996; 
- Decree No. 53/PCM "On the Management of Foreign Exchange and Precious Metals" of 
7 September 1990; 
- Presidential Decree Law No. 01/P "Governing the Management of Foreign Exchange and 
Precious Metals", dated 17 March 2008; 
- Instruction No. 01/BOL "On Implementation of  Decree Law on Management of Foreign 
Currency and Precious Metals", dated 2 April 2010; 
- Law No. 02/NA "On Investment Promotion" of 8 July 2009; - Decree No. 119/PM "On Implementation of the Investment Promotion Law", dated 
20 April 2011; 
- Decree No. 68/PM "On Adoption of the Negative List", dated 28 April 2008; 
- Law No. 11/NA "On the Promotion of Foreign Investment" of 22 October 2004; - Decree No. 301/PM "Regarding the Implementation of the Law on the Promotion of Foreign 
Investment" of 12 October 2005; 
- Law No. 1/94 "On the Promotion and Management of Foreign Investment in the Lao PDR" of 
14 March 1994; 
- Decree No. 46/PM "On the Implementation of the Law on the Promotion and Management of 
Foreign Investment in the Lao PDR" of 23 March 2001; 
- Decision No. 013/CPC "On the Rules for Cons ideration Approval of Foreign Investment 
Project in the Lao PDR" of 27 February 2002; 
- Law No. 10/NA "On the Promotion of Domestic Investment" of 22 October 2004; 
- Domestic Investment Promotion Law No 03/95/NA of 14 October 1995; 
- Resolution No.3/NA "Approving the Dom estic Investment Promotion Law" of 
14 October 1995; 
- Decree No. 27/PM "On Domestic Investment Promotion" of 26 October 1995; - Contract and Tort Law No. 01/NA, dated 8 December 2008;   
- Law No. 04/97/NA "Mining Law" of 12 April 1997; 
- Prime Minister's Order No. 18/PM "On Forest ry Management Policy for the Year 2002-2003" 
of 4 October 2002; 
- Notification No. 11/PM "On the Management of Forestry and the Timber Industry" of 
23 August 1999; 
- Forestry Law No. 01/96 of 11 October 1996; 
- Resolution "On the Adoption of the Forestry Law No. 04/96" of 11 October 1996; 
- Decree No. 125/PDR "On the Promulgation of the Forestry Law" of 2 November 1996; - The Constitution of the Lao PDR of 15 August 1991; - Presidential Ordinance No. 02/OPR "On Le gal Act Drafting" of 20 October 2003; 
- Law No. 06/NA "On the Resolution of Econom ic Disputes", dated 17 December 2010;   
- Enterprise Law No. 11/NA of 9 November 2005; 
- Business Law No. 03/NA of 18 July 1994; - Decree No. 31/PMO "On the Implementation of the Business Law" of 1 February 1996; WT/ACC/SPEC/LAO/5/Rev.1 
Page 90  
 
  - Notification No. 750/MOC "On the Implementation of Enterprise Registration Based on the 
Business Law" of 6 August 1996; 
- Decree No. 474/PM "On the Administration of Prices of Goods and Services", dated 
18 November 2010; 
- Decree No. 207/PMO "On Goods Trading Business" of 11 October 2001; 
- Law No. 05/NA "On Tax", dated 20 December 2011; 
- Decree No.114/GoL "On Import and Export of Goods", dated 6 April 2011; - Decree No. 205/PM "On Export and Import" of 11 October 2001; - Regulations No. 462/MOC "On the Authoriza tion for the Operation of the Import-Export 
Business" of 8 December 1993; 
- Notification No. 870/MOC "Amendment to Notification No. 175/MOC of 4 April 1994 – 
On Prohibited Goods for Import or Export" of 19 September 1996; 
- Notification No. 1552/MCTPC "On the Import of Motor Cycles Over 250cc" of 8 July 1996; - List of Chemical Products Under Restricted Control No. 1364/95/DFM of September 1995; - Decree No. 03/PR "On the Preservation of Cultu ral, Historical and Natural Heritage" of 
20 June 1997; 
- List of Medicines Prohibited in the Lao PD R based on Decree of the Ministry of Public 
Health No. 740/MPH of 3 April 1994; 
- Decree No. 180/PM "On Import Licensing Procedures" of 7 July 2009; - Notification No. 2151/MOIC.DIMEX "On the List of Controlled Goods Subject to 
Non-Automatic Import and Export Licensing Pro cedures in Lao PDR" of 30 October 2009; 
- Notification No. 0826/MOIC.DIMEX "On the Automatic and Non-automatic Licensing of 
Import and Export of Goods", dated 3 May 2011:   
- Annex 1:  Goods subject to non-auto matic import and export licensing; and 
- Annex 2:  Goods subject to automatic import and export licensing;   
- Notification No. 0076/MOIC.DIMEX "On the Li st of Goods subject to Automatic and 
Non automatic Import and Export Licensing" of 13 January 2012; 
- Decision No. 0450/MOIC.DIMEX "On the Procedures for Steel and Cement Import and 
Distribution", dated 1 March 2012; 
- Decision No. 0451/MOIC.DIMEX "On the Procedure for Timber Import", dated 
1 March 2012;  
- Decision No. 0452/MOIC.DIMEX "On Procedures for Rice Import and Export in the 
Lao PDR", dated 1 March 2012; 
- Notification No. 0202/MOC.FTD "On the List of Imports and Exports Subject to Licensing 
from Trade Authorities and Subject to Technical Certification from Related Authorities (for the year 2002-2003)" of 14 February 2003; 
- Law No. 05/NA "Customs Law" of 20 May 2005; 
- Law No. 04/NA "On Customs", dated 20 December 2011; 
- Guidance No. 0491/MOF "On the Implementation of the Customs Law No. 05/NA dated 
20 May 2005 and Decree Implementing th e Customs Law" dated 12 March 2009; 
- Instruction No. 1398/PM "On Custom s Valuation" dated 16 June 2010; 
- Instruction No. 2401/CD of the Director-General of the Customs Department "On Customs 
Valuation for Imported Goods", dated 29 September 2010. 
- Decree No. 362/PM "On the Implementation of  the Customs Law" of 19 October 2007; 
- Law No. 4/94/NA "Customs Law" of 18 July 1994; - Decree No. 228/PM "On the Origin of Import and Export Goods" of 22 April 2010; - Decree No. 187/PM "On the Abolishing of Export Tariffs for Agricultural Products" of 
21 October 1994; 
- Minister Instruction No. 230/MOF "On the A bolishing of Export Tariffs for Agricultural 
Products" of 4 March 1995; 
- Edict No. 002/OP "On List of Goods and Export Duty Rates", dated 27 April 2012; - Decree No. 85/PM "On the Management of the Standards and Quality of Goods and Services" 
of 2 November 1995;  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 91 
 
 
  - Provisions No. 105/FMC for Quality Control of 31 October 1991; 
- Standards Law No. 13/NA of 26 December 2007; - Ministerial Decision No. 0039/MoAF "On the Basic Principles for the Application of Sanitary 
and Phytosanitary Measures in Plant and Animal Product Administration", dated 11 January 2012;  
- Decree No. 363/PM "On the Notification and E nquiry of Trade Related Information" dated 
19 August 2010; 
- Decision No. 0471/MOIC "On Notification Unit of Sanitary-Phytosanitary Measures and 
Technical Barriers to Trade", dated 9 March 2011; 
- Decision No. 1199/NAST-PMO "On the Organization and Operation of Technical Barriers to 
Trade Enquiry Point", dated 22 June 2011; 
- Decision No. 1502/MAF "On the Organization and Operation of Sanitary and Phytosanitary 
Enquiry Point", dated 23 June 2011; 
- Regulation No. 519/MoH "On Labelling of Pre-packaged Food", dated 18 March 2009;  
- Law No. 06/NA "On Plant Protection", dated 9 December 2008;  
- Regulation No. 0719/MAF "On the Management and Use of Plant Sp ecies and Seeds for 
Planting in the Lao PDR" of 3 December 1997; 
- Regulation No. 0639/MAF "On the Quarantine of Plants in the Lao PDR" of 2 July 1993; - Decree No. 66/PM "On the Quarantine of Plants in the Lao PDR" of 23 March 1993; - Regulation No. 894/MAF "On the Control and Use of Plant Pesticides in the Lao PDR" of 
21 November 1992; 
- List of pets and diseases of plants quarantine; 
- Law No. 03/NA "On Livestock Production and Veterinary Matters" of 25 July 2008; 
- Instruction No. 0005/MAF for the Regulati on on Livestock Management in Lao PDR of 
2 January 1997; 
- Decree No. 85/PMO "On Livestock Management in Lao PDR" of 31 May 1993; 
- Regulation No.  0004/MAF "On Livestock Mana gement in Lao PDR" of 2 January 1997;  
- Technical Norms No. 0313/MAF "On livestock management in the Lao PDR" of 
21 January 2000; 
- Law No. 04/NA "On Food" of 15 May 2004; - National Policy No. 028/PMO "On Food  Safety" of 3 February 2009; 
- Regulation No. 518/MOH "On the Basic Principles in the Application of Sanitary and 
Technical Measures for the Food Safety  Management" of 18 March 2009; 
- Regulation No. 586/MOH "On the Control on Pr oduction, Exported-Imported Safe Food", of 
12 May 2006; 
- Provisions No. 035/FMC "On the Control of Export-Oriented and Imported Foodstuffs" of 
26 October 1991; 
- Elaborated Recommendations No. 035/FMC Rela ting to the Regulations on Quality Control 
of Export-Oriented and Imported Foodstuffs of 9 September 1991; 
- Regulation No. 105/CFD "On Food Quality Control in Domestic Distribution" of 
31 October 1991; 
- Provisions No. 048/FMC "On Quality Control of  Domestically Produced Food Products" of 
26 September 1991; 
- Fisheries Law No. 03/NA, dated 9 July 2009; 
- Resolution No. 09/PMO endorsing "The National Science and Technology Policy of 
Lao PDR up to the year 2010" of 27 November 2003;  
- Ministerial Decision No. 1502/MAF "On the Or ganization and Operation of Sanitary and 
Phytosanitary Enquiry Point" (re-submitted), dated 23 June 2011; 
- Decree No. 228/GoL "On the Prevention an d Control of Animal Diseases", dated 
31 May 2012; 
- Decree No. 229/GoL "On Implementing the Law on Plant Protection", dated 31 May 2012; - Decision No. 297/MOH "On Food Inspection", dated 24 February 2012; WT/ACC/SPEC/LAO/5/Rev.1 
Page 92  
 
  - Instruction No. 109/NDID "On Procedures fo r the Importation of Industrial Explosive 
Substances"; 
- Decree No. 234/GoL "On the Implementation of the Law on Standardization", dated 
6 June 2012; 
- Decree No. 230/GoL "On the Control of the M ovement of Animal and Animal Products", 
dated 4 June 2012; 
- Decree No. 162/PM "On Border Trade Zone at Boten, Louangnamtha Province" of 
8 October 2002; 
- Decree No. 25/PM "On Dansavanh Village Border Trade Zone" of 25 March 2002; 
- Decree No. 148/PM "On Savan-Seno Special Economic Zone" of 29 September 2003; 
- Decree No. 443/PM "On Special Economic Zone and Specific Economic Zone in the 
Lao PDR", dated 26 October 2010; 
- Decree No. 154/PM "On the Cancellation of Local  Content Requirements set out in Previous 
Legislations", dated 5 March 2012; 
- Implementation of Rules and Regulations No . 01639/MOF "On Government Procurement of 
Goods, Construction, Repairs and Services" of 22 December 1998; 
- Law No. 08/NA "On Intellectual Property" of 24 December 2007; - Law No. 01/NA "On Intellectual Propert y" (amended), dated 20 December 2011. 
- Instruction No. 1970/MOF "On Customs Measures for the Protection of Intellectual Property 
Rights", dated 8 September 2011; 
- Regulation No. 466/STEA-PMO "On Registra tion of Trademarks" of 7 March 2002;  
- Decree No. 06/PM "On Trademarks" of 18 January 1995; 
- Decree No. 01/PM "On Patent, Petty Patent and Industrial Designs" of 17 January 2002; 
- Regulation No. 322/STEA-PMO "On the Implem entation of Decree on Patent, Petty Patent 
and Industrial Designs" of 18 February 2003; 
- Presidential Decree No. 06/PO "On the Prom ulgation of the Amended Law on Court Fees", 
dated 16 January 2007;   
- Presidential Decree No. 137/PO "On the Pr omulgation of the Law on the Handling of 
Petitions", dated 9 December 2005;   
- Presidential Decree No. 34/PO "On the Prom ulgation of the Amended Law on Criminal 
Procedure", dated 14 June 2004; 
- Presidential Decree No. 04/PO "On the Promulgation of the Penal Law", dated 
9 January 1990; 
- Decision No. 0349/MOIC.FTPD "On GATS E nquiry Point", dated 22 February 2011; 
- Law No. 04/NA "On Judgement Enforcement (Amended)", dated 8 July 2008;   - Regulation "On Conditions for Establishing Ba nks in the Lao PDR" of 30 November 1995; 
- Decree No. 01/NA "On Commercial Banks" of 11 March 1997; 
- Law No. 03/NA "On Commercial Banks", dated 26 December 2006; 
- Decree No. 275/PM "On the Implementation of the Law on Commercial Bank", dated 
25 September 2009;   
- Insurance Law No. 11/90/PSA of 29 November 1990; - Telecommunications Act No. 02/NA of 10 April 2001; - Law No. 09/NA "On Telecommunications (Amended)", dated 21 December 2011; 
- Decree No. 64/PM "On Private Education" of 14 August 1995; 
- Regulations No. 159/OPM "On the Management of  Hotels and Guesthouses" of 30 July 1997;  
- Regulations No. 1150/PM "On the Establis hment and Management of Tourist Service 
Operators" of 25 October 1993; 
- Regulations No. 1413/49/MCTPC "On the Esta blishment of Businesses of Transportation 
Shipping and Repair Services by the State; State Private Collectives and Private Individuals" 
of 22 June 1996; 
- Law No. 3/97/NA "On Road Transportation" of 12 April 1997; - Decree No. 35/PDR "On the Enforcement of the Law on Road Transportation" of 
31 May 1997;  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 93 
 
 
  - Resolution No. 43/NA "On the Adoption of th e Law on Education (as amended)", dated 
3 July 2007; 
- Decree No. 146/PO "On the Promulgation of the Accounting Law (amended text), dated 
17 July 2007;  
- Decision No. 0075/MOIC.DIMEX "On the Procedures for Car Import and Distribution in the 
Lao PDR", dated 13 January 2012; 
- Decision No. 0238/MOIC.DIMEX "On Procedure for Import and Distribution of Gas in the 
Lao PDR", dated 2 February 2012;  
- Decision No. 0237/MOIC.DIMEX "On Procedure for Import and Distribution of Petroleum 
in the Lao PDR", dated 2 February 2012; 
- Decree No. 39/PO "On the Promulgation of the Law on Postal Services", dated 15 June 2004; 
- Decree No. 43/PO "On the Promulgation of th e Law on Civil Aviation", dated 25 May 2005; 
- Decree No. 139/PDR "On the Promulgation of the Law on Health Care", dated 
9 December 2005; and 
- Decree No. 140/PO "On the Promulgation of the Law on Tourism", dated 9 December 2005. 
 WT/ACC/SPEC/LAO/5/Rev.1 
Page 94  
 
  Table 2: List of Controlled Businesses (Negative List) 
ISIC Code Controlled businesses 
 Agriculture, forestry and fishing 
0170 Hunting, trapping and related service activities 
0210 Silviculture and other forestry activities 
0220 Logging 
0230 Gathering of non-wood forest products 
0312 Freshwater fishing 
 Mining and quarrying 
0510 Mining of hard coal 
0520 Mining of  lignite 
0610 Extraction of crude petroleum 
0620 Extraction of natural gas 
0710 Mining of iron ores 
0721 Mining of uranium and thorium ores 
0729 Mining of other non-ferrous metal ores 
0810 Quarrying of stone, sand and clay 
0891 Mining of chemical and fertilizer minerals 
0892 Extraction of peat 
0893 Extraction of salt 
0899 Other mining and quarrying n.e.c. 
 Electricity, gas, steam and air conditioning supply 
3510 Electric power generation, transmission and distribution 
3520 Manufacture of gas; distribution of gaseous fuels through mains 
 Water supply; sewerage, waste management and remediation activities 
3600 Water collection, treatment and supply 
3700 Sewerage 
3812 Collection of hazardous waste 
3822 Treatment and disposal of hazardous waste 
 Transportation and storage 
4911 Passenger rail transport, interurban 
4912 Freight rail transport 
4930 Transport via pipeline 
5110 Passenger air transport 
5120 Freight air transport 
5310 Postal activities 
 Information and communication 
5811 Book publishing 
5813 Publishing of newspapers, journals and periodicals 
5911 Motion picture, video and television programme production activities 
5912 Motion picture, video and televi sion programme post-production activities 
5913 Motion picture, video and television programme distribution activities 
5920 Sound recording and music publishing activities 
6010 Radio broadcasting 
6021 Television broadcasting 
6022 Leasing program via cable, satellite and other 
6110 Wired telecommunications activities 
6120 Wireless telecommunications activities 
6130 Satellite telecommunications activities 
6190 Other telecommunications activities 
 Financial and insurance 
6411 Central banking 
6419 Other monetary intermediation 
6420 Activities of holding companies  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 95 
 
 
  ISIC Code Controlled businesses 
6430 Trusts, funds and similar financial entities 
6491 Financial leasing 
6492 Other credit granting 
6499 Other financial service activities, except insurance and pension funding activities, n.e.c. 
6511 Life insurance 
6512 Non-life insurance 
6520 Reinsurance 
6530 Pension funding 
6611 Administration of financial markets 
6612 Security and commodity contracts brokerage 
6619 Other activities auxiliary to financial service activities 
6630 Fund management activities 
 Human health and social work activities 
8610 Hospital activities 
8620 Medical and dental practice activities 
8690 Other human health activities 
 Arts, entertainment and recreation 
9200 Gambling and betting activities 
9321 Activities of amusement parks and theme parks 
 WT/ACC/SPEC/LAO/5/Rev.1 
Page 96  
 
  Table 5: State-Owned Enterprises 
A. Enterprises Involved in Importation and Exportation of Goods 
No. Name of SOEs Responsible 
Agency Sectors Registered Activities 
1. Lao Trade Import-
Export Company  Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of construction materials, electrical 
equipment and export of wood and 
handicraft products. 
2. Lao International 
Import-Export Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of construction materials, electrical 
equipment and export of wood and handicraft products. 
3. Technical 
Equipment Supply 
Enterprise Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of technical equipment including 
telecommunication equipment. 
4. Lanexang 
Development Co. 
Ltd Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of construction materials, spare 
parts, electrical eq uipment; export of 
wood and handicraft products. 
5. Construction 
Materials, Surveys 
and Analyses Co. Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of construction materials and 
technical equipment. 
6. Lao International 
Trade Service Company Ministry of 
Industry and 
Commerce Construction and 
technical 
equipment Import of technical equipment including 
various consumption goods; export of handicraft products. 
7. Lao State Fuel 
Company Ministry of 
Industry and 
Commerce Energy Import of gasoline,  diesel, lubricants and 
gas. 
8. Barite Exploration 
Co. Ministry of 
Energy and 
Mining Mining Operation ceased. 
9. Lao Cotton State 
Enterprise Lao Women's 
Union Textile Export of clothing and other cotton-made 
products. 
10. Pharmaceutical 
Factory No. 2 Ministry of 
Public Health Public health Import of chemical products and export of 
medicines. 
11. Pharmaceutical 
Factory No. 3 Ministry of 
Public Health Public health Import of chemical products and export of 
medicines. 
12. State Printing 
Enterprise  Ministry of 
Information 
and Culture General printing Printing equipment. 
13. Agricultural 
Machinery Company 
(Tha Ngone) Ministry of 
Agriculture 
and Forestry Agriculture and 
forestry Import of agricultural machinery and 
materials; export of agricultural, forest and wood products. 
14. Development of 
Agro-Forestry Industry Co. (DAFI) Ministry of 
Defence Agriculture and 
forestry Import of agricultural machinery and 
materials; export of agricultural, forest and wood products. 
15. State Enterprise for 
Agriculture and 
Industry Development Ministry of 
Defence Agriculture, 
forestry and 
manufacturing Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
16. Bolisat Phattana 
Khet Phoudoi 
(Mountainous Area Development 
Company) Prime 
Minister's 
Office Agriculture, 
forestry and rural 
development Import of agricultural machinery and 
materials; export of agricultural, forest 
and wood products. 
  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 97 
 
 
   
B. Other State-Owned Enterprises 
No. Names Responsible agen cy Products or services 
17. Lao National Tourism Prime Mini ster's Office Tourist services 
18. Education Printing Enterprise Ministry of Education Education printing services 
19. Education Equipment Printing  Lao Youth Union  Educational equipment 
20. Electricité du Laos Ministry of Energy and Mining Electricity  
21. National Lottery Co. Ministry of Finance Lottery 
22. Lao Labour Services Co. Ministry of Labour and Social 
Welfare Employment services 
23. Banque Pour Le Commerce 
Extérieur du Laos Bank of Lao PDR Banking service 
24. Lao Development Bank Bank of Lao PDR Banking service 
25. Agricultural Promotion Bank Bank of Lao PDR Banking service 
26. Lao Water Supply Co. Ministry of Public Works and  
Transport Water supply 
27. La Poste du Laos National Authority of Post and 
Telecommunication Postal service 
28. Lao Airlines Ministry of Public Works and  
Transport Airline services 
29. Design Communication Institute National Authority of Post and 
Telecommunication Communication and design 
30. Road and Bridge Construction 
No. 8 Co. Ministry of Public Works and 
Transport Construction 
31. River Transportation Co. Ministry of Public Works and 
Transport Transportation 
32. River Construction and 
Transportation Co. Ministry of Public Works and 
Transport Construction 
33. Communication and Design Co. National Authority of Post and 
Telecommunication Communication and design 
34. River survey and Design Co. Ministry of Public Works and 
Transport Survey and design 
35. Consultant Services Co. Ministry of Finance Consultant services 
36. Lao Air Ministry of Public Works and 
Transport Airline service 
37. Enterprise Telecommunication 
du Lao (ETL) National Authority of Post and 
Telecommunication Telecom services 
 WT/ACC/SPEC/LAO/5/Rev.1 
Page 98  
 
  Table 8: Fees on or in Connection with Importation or Exportation 
Fee or Charge for Services Rendered Amount of Fee or Charge Ministry or Agency Responsible 
Inspection of imported medicines KN 20,000 per invoice Ministry of Health 
Foodstuffs: 
- Issuing a permit for imports - Biennial registration of imported 
products  
KN 20,000 per invoice  KN 50,000 per product 
registered  
Ministry of Health  Ministry of Health 
Quality inspection of import of fuel, steel bar and cement KN 600,000 per invoice Ministry of Science and 
Technology 
Fee for Import or Export Licence - Import licence for vehicles and parts  
- Import licence for machines, raw 
materials, semi-final products or other parts for installation, manufacturing, 
assembly or processing in factories   
KN 10,000 per set 
KN 40,000 per set Ministry of Industry and 
Commerce and relevant 
competent licensing authorities 
Customs Processing Fee for Import and 
Export 
1. Certificate of Vehicles duty payment; 
2. Customs declaration form (large); 3. Customs declaration form (attachment 
form); 
4. Customs seal; 5. Sticker (D9); 
6. Duty stamp(big one); 
7. Duty stamp (medium, small); 8. Stamp for duty free alcohol, stamp for 
cigarette; 
9. Certificate of duty payment of vehicle 
for those produced and assembled in 
the system of IKD; 
10. Customs declaration form for vehicle 
for touring (D53); 
11. Customs declaratio n form for guarantee 
(large one D86); 
12. Customs declaratio n form for guarantee 
(attachment form) (D86); 
13. Retail customs declaration form (D44); 
14. Service charge of customs data 
management system;  
 
KN 2,000 
KN 500 KN 250 
 
KN 3,000 KN 4,000 
KN 600 
KN 500 KN 1,500 
 
KN 2,000  
 
KN 2,000  
KN 500 
 KN 250 
 
KN 500 
KN 100,000 
 Customs Service 
Warehouse fees Fees are collected in 
non-ad valorem , depending 
on type of goods and 
period of storage. Warehouse authorities  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 99 
 
 
  Table 9: Excise Tax 
1. Excise Tax Rate for General Goods 
 Excise Tax Rate in percentage 
(%) 
1. Inflammable fuel:   
 - Premium gasoline 
- Regular gasoline - Diesel 
- Aviation gasoline 
- Lubricant oil, hydraulic oil, grease and brake oil 25% 
20% 10% 
10% 
5% 
2. Gas for vehicles 10% 
3. Alcohol or alcoholic beverages:   
 - Alcohol or alcoholic beverages of 15% proof or higher 
- Alcohol, wine and other alcoholic beverages under 15% proof - Beer 70% 
60% 50% 
4. Finished beverages: 
- Soft drinks, soda water, drinking mineral water, fruit juice and other similar 
beverages - Energy drinks  
5% 
 
10% 
5. Cigarettes: shredded tobacco, packaged cigarettes and cigars; 60% 
6. Cristal objects or jewelleries 20% 
7. All types of carpets 15% 
8. Furniture (sofa) sets amounted from 10,000,000 kip 15% 
9. Perfumes and cosmetic products ; 20% 
10. Playing cards and gambling equipment,  90% 
11. rockets fireworks and fire cracks  80% 
12. Vehicles:  
 1. Motorcycles: 
- with power of 110 cc or under - with power of 111-150 cc 
- with power of 151-250 cc 
- with power of 251 cc or higher  
- rates for electrical motorcycles shall be  discounted by 20% of the applicable 
rates above  
2. Motor vehicles: 
Rates for vehicles range from 25 – 150% based on capacity of engine. Detailed excise tax rates shall be considered and determined in a presidential 
edict by the Government.  
10% 15% 
20% 
25% 
 
  
 
  
 
13. Parts for vehicles 10% 
14. Vehicle accessories 15% 
15. Speedboats, yachts, motorized sports bo ats including parts and components  15% 
16. Satellite television receivers, audio and visual players, cameras, telephones, 
audio and visual recorders, musical instruments including their equipment and components 10% 
17. Electrical appliances: air conditioners, washing machines and vacuum 
cleaners  10% 
18. Billiard and snooker tables, bowling equipment, football game tables  20% 
19. All types of gaming stations/machines  30% 
 WT/ACC/SPEC/LAO/5/Rev.1 
Page 100  
 
  2. Excise Tax Rate for Services 
 Excise Tax Percentage 
1. Entertainment services: bars, discotheques, karaoke 60% 
2. Bowling 10% 
3. Massage, sauna, beauty salon 10% 
4. The use of telephone services, cable te levision, digital television, internet 10% 
5. Golfing 10% 
6. Lottery activities 25% 
7. Casinos and casino gambling equipment 80%  
   WT/ACC/SPEC/LAO/5/Rev.1
 Page 101Table 10: Import Prohibitions 
No. HS Code Goods Purpose Regulation Supervising authority 
1. NA Chemicals of high-level danger used in 
industries  For protection of health, 
safety of human and 
environment   At present the governing regulation 
is being drafted and expected to be 
issued by March 2011. 
 Decree on Import and Export of 
Goods No. 114/GoL dated 
6 April 2011. Ministry of Industry and Commerce 
(Industry Department) 
2. 8710.00.00 
9301 
9302.00.00 
9306 Bullets and weapons of all kinds (except 
for explosives used in industries ) and 
war vehicles For public order and 
national security  Articles 76 & 77 of Criminal Law 
No. 12/NA, dated 9 November 2005. 
 Prime Minister’s Decision on the 
Control and Use of Explosives in Lao PDR No. 39/PM, dated 
12 July 2001. Ministry of National Defense (Advisory 
Major Department) 
3. 1211.40.00 
1211.30 1211.90.12 
1207.91.00 
1302.11 2939.11.00 
2939.19.00 
2939.91.10 Opium 
Opium balls, poppy seeds Opium poppies, other finished and dried 
opium poppies made from coco leaves, 
marihuana in various forms, cocaine and their derivatives   For public order and 
national security  Article 146 of Criminal Law No. 
12/NA, dated 9 November 2005. 
 Law on Narcotic Drugs. 
 Decree implementing Law on 
Narcotic Drugs No. 076/PM, dated 20 February 2009. Ministry of Public Security   
(Narcotic Drug Control Police)  
Prime Minister’s Office  
(Narcotic Drug Control and Inspection Authority) 
4. NA Destructive fishing tools  For sustainable 
conservation of aquatic 
fauna and environment   Fisheries Law. Ministry of Agriculture and Forestry 
( Department of Livestock and Fishery) 
5. NA Pornographic medias / materials  For protection of fine 
tradition   Law on Printings No. 05/NA, dated 
9 December 2008. Ministry of Information and Culture  
(Media Department) 
6. 3215.19.00 
4802.62.90 
8443.19.00 
8454.30.00 Banknote paper, banknote ink, banknote 
printer and coin making machine  For financial stability   Article 4 scope of rights of banks, 
Law on Bank of Lao PDR 
No. 05/NA dated 14 October 1999. Bank of Lao PDR 
(Stock-Monetary Department) WT/ACC/SPEC/LAO/5/Rev.1 
Page 102  
 
  Table 11: Goods Subject to Non-Automatic Import Licensing 
 
No HS Code Product Reason Responsible Agencies 
1. 93.03.20 
93.03.30 Guns and bullets for 
sportive purposes  For safety of public and national security Ministry of National Defense 
(National Defense Department) 
2. 36.02 
36.03 Explosives used in 
industries: 
- explosives - explosive equipment 
- explosive objects 
- fireworks 
 For safety of public and 
national security  Ministry of National Defense 
(National Defense Industry 
Department 
3. 7108.12.10 Gold bars (only for 
gold bars as 
internationally 
recognized as medium of payment) For exchange stability Bank of Lao PDR 
(Monetary Policy Department) 
  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 103 
 
 
  Table 12: Goods Subject to Automatic Import Licensing 
No. HS Code Products Reasons Responsible Agencies 
1. 8701.20 
8701.30.20 
8701.90 
87.02 87.03 
87.04 
87.05 87.11 Road vehicles, except road 
vehicles with three wheels 
(87.04.31) For statistical and 
import monitoring 
purpose Ministry of Industry and Commerce
(Department of Import and Export) 
2. 27.10 
27.11 Petroleum and Gas For statistical and 
import monitoring 
purpose Ministry of Industry and Commerce
(Department of Import and Export) 
3. 4403 
4407.10-
4407.28 
0601 Logs, trunks, barks and 
rough-processed timber For statistical and 
import monitoring 
purpose Ministry of Industry and Commerce
(Department of Import and Export) 
4. 1006 
 Rice, Rice in the husk, 
husked (brown) rice,  semi-
milled or wholly milled rice, whether or not 
polished or glazed For statistical and 
import monitoring 
purpose Provincial, Vientiane Capital 
Department of Industry and 
Commerce 
5. 72.13  
72.14 72.15 
72.16 Bars and rods, hot-rolled, in 
irregularly wound coils, of iron or non-alloy steel; 
Other bars and rods of iron 
or non-alloy steel, not further worked than forged, 
hot-rolled, hot-drawn or 
hot-extruded, but including those twisted after rolling; 
Other bars and rods of iron 
or non-alloyed steel;  Angles, shapes and sections 
of iron or non-alloy steel. For statistical and 
import monitoring purpose Provincial, Vientiane Capital 
Department of Industry and Commerce 
6. 25.23 
38.16 Cement, mortar, concrete For statistical and 
import monitoring purpose Provincial, Vientiane Capital 
Department of Industry and Commerce 
7. 4901 
4903 4905.91.00 
4905.99.00 
4906  Publications For statistical and 
import monitoring purpose Ministry of Information, Culture 
and Tourism (Department of Publication) 
8. 26.01-26.17 
 Minerals and mineral 
products For statistical and 
import monitoring 
purpose Ministry of Energy and Mines 
(Mining Department) 
9. 84.67.81.00 
84.67.89.00 
84.67.91.10 Timber exploitation 
machines, logging 
machines, chain saws 
including parts and equipment's thereof For statistical and 
import monitoring 
purpose Ministry of Agriculture and 
Forestry 
(Forestry Department) 
 
 WT/ACC/SPEC/LAO/5/Rev.1 
Page 104  
 
  Table 13: List of Products Eligible for Safeguard Measures during Transition Period 
 
HS Code Description 
0201.10.00 - Carcasses and half-carcasses 
0201.20.00 - Other cuts with bone in 
0201.30.00 - Boneless 
0202.10.00 - Carcasses and half-carcasses 
0202.20.00 - Other cuts with bone in  
0202.30.00 - Boneless 
0203.11.00 - - Carcasses and half-carcasses 
0203.12.00 - - Hams, shoulders and cuts thereof, with bone in 
0203.19.00 - - Other 
0203.21.00 - - Carcasses and half-carcasses 
0203.22.00 - - Hams, shoulders and cuts thereof, with bone in 
0203.29.00 - - Other 
0206.49.00 - - Other  
0206.90.00 - Other, frozen  
0207.11.00 - - Not cut in  pieces, fresh or chilled 
0207.12.00 - - Not cu t in pieces, frozen 
0207.13.00 - - Cuts and offal, fresh or chilled 
0207.14.10 - - - Wings 
0207.14.20 - - - Thighs 
0207.14.90 - - - Other 
0207.24.00 - - Not cut in  pieces, fresh or chilled 
0207.25.00 - - Not cu t in pieces, frozen 
0207.26.00 - - Cuts and offal, fresh or chilled 
0207.27.10 - - - Livers 
0207.27.90 - - - Other 
0207.32.10 - - - Of ducks 
0407.00.11 - - Hens' eggs 
0407.00.12 - - Ducks' eggs 
0407.00.19 - - Other 
0407.00.91 - - Hens' eggs 
0407.00.92 - - Ducks eggs 
0407.00.99 - - Other 
0702.00.00 Tomatoes, fresh or chilled. 
0704.10.10 - - Cauliflowers 
0710.40.00 - Sweet corn 
0710.80.00 - Other vegetables 
0710.90.00 - Mixtures of vegetables 
0805.10.00 - Oranges 
0805.50.00 - Lemons (Citrus limon, Citrus limonum) and limes (Citrus aurantifolia,  
0807.19.00 - - Other 
0807.20.00 - Papaws (papayas) 
0813.40.00 - Other fruit  
0813.50.00 - Mixtures of nuts or dried fruits of this Chapter 
1006.10.90 - - Other   
1006.20.10 - - Thai Hom Mali rice   
1006.20.90 - - Other  
1006.30.11 - - - Whole 
1006.30.12 - - - Not more than 5% broken  
1006.30.13 - - - More than 5% but not more than 10% broken 
1006.30.14 - - - More than 10% but not more than 25% broken   
1006.30.19 - - - Other   WT/ACC/SPEC/LAO/5/Rev.1 
 Page 105 
 
 
  HS Code Description 
1006.30.20 - - Parboiled rice 
1006.30.30 - - Glutinous rice (pulot) 
1006.30.40 - - Basmati rice 
1006.30.50 - - Thai Hom Mali rice   
1006.30.61 - - - Whole 
1006.30.62 - - - Not more than 5% broken  
1006.30.63 - - - More than 5% but not more than 10% broken 
1006.30.64 - - - More than 10% but not more than 25% broken  
1006.30.69 - - - Other  
1006.40.00 - Broken rice  
2401.30.10 - - Tobacco stems  
2401.30.90 - - Other  
 
 WT/ACC/SPEC/LAO/5/Rev.1 
Page 106  
 
   
Table 14:  Export Duties 
No Heading Sub-heading Descriptions Export Duty Rate % 
  06.02   Other live plants (including their roots), cuttings 
and slips; mushroom spawn.   
1.   0602.20.00 -  Trees, shrubs and bushes, grafted or not, of 
kinds which bear edible fruit or nuts 40 
2.   0602.30.00 -  Rhododendrons  and azaleas, grafted or not  40 
    0602.90 -  Other:   
3.   0602.90.10 - -  Rooted orchid cuttings and slips 10 
  09.08  Nutmeg, mace and cardamoms.   
4.  09.08.10.00 Nutmeg 10 
5.  0908.20.00 Mace 10 
6.   0908.30.00 -  Cardamoms 10 
  13.01   Lac; natural gums, resins, gum-resins and 
oleoresins (for example, balsams).   
7.   1301.20.00 -  Gum Arabic 10 
    1301.90 - Other:   
8.   1301.90.10 - -  Gum benjamin 10 
9.   1301.90.20 - -  Gum damar 10 
  14.01   Vegetable materials of a kind used primarily for 
plaiting (for example, bamboos, rattans, reeds, 
rushes, osier, raffia, cleaned, bleached or dyed 
cereal straw, and lime bark)   
10.   1401.10.00 -  Bamboos 10 
11.   1401.20.00 -  Rattans 40 
12.   1401.90.00 -  Other 10 
  25.05   Natural sands of all kinds, whether or not 
coloured, other than metal-bearing sands of 
Chapter 26.   
13.   2505.10.00 -  Silica sands and quartz sands 5 
14.   2505.90.00 -  Other 5 
  25.13  Pumice stone; emery; natural corundum, natural 
garnet and other natural abrasives, whether or not 
heat-treated.   
15.   2513.10.00 -  Pumice stone 5 
16.   2513.20.00 -  Emery, natural corundum, natural garnet and 
other natural abrasives 5 
17. 25.14 2514.00.00 Slate, whether or not roughly trimmed or merely 
cut, by sawing or otherwise, into blocks or slabs of 
a rectangular (including square) shape. 5 
  25.15   Marble, travertine, ecaussine and other calcareous 
monumental or building stone of an apparent specific gravity of 2.5 or more, and alabaster, 
whether or not roughly trimmed or merely cut, by 
sawing or otherwise, into blocks or slabs of a rectangular (including square) shape.   
      -  Marble and travertine:   
18.   2515.11.00 - -  Crude or roughly trimmed 5 
    2515.12 - -  Merely cut, by sawing or otherwise, into 
blocks or slabs of a rectangular (including square) shape:   
19.   2515.12.10 - - -  Blocks 5 
20.   2515.12.20 - - -  Slabs 5 
  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 107 
 
 
  No Heading Sub-heading Descriptions Export Duty Rate % 
21.   2515.20.00 -  Ecaussine and other calcareous monumental or 
building stone; alabaster 5 
  25.16   Granite, porphyry, basalt, sandstone and other 
monumental or building stone, whether or not roughly trimmed or merely cut, by sawing or 
otherwise, into blocks or slabs of a rectangular 
(including square) shape.   
      -  Granite:   
22.   2516.11.00 - -  Crude or roughly trimmed 5 
    2516.12 - -  Merely cut, by sawing or otherwise, into 
blocks or slabs of a rectangular (including square) 
shape:   
23.   2516.12.10 - - -  Blocks 5 
24.   2516.12.20 - - -  Slabs 5 
25.   2516.20.00 -  Sandstone 5 
26.   2516.90.00 -  Other monumental or building stone 5 
  25.17   Pebbles, gravel, broken or crushed stone, of a kind 
commonly used for concrete aggregates, for road 
metalling or for railway or other ballast, shingle 
and flint, whether or not heat-treated; macadam of 
slag, dross or similar industrial waste, whether or 
not incorporating the materials cited in the first 
part of the heading; tarred macadam; granules, chippings and powder, of stones of heading 25.15 
or 25.16, whether or not heat-treated.   
27.   2517.10.00 -  Pebbles, gravel, broken or crushed stone, of a 
kind commonly used for concrete aggregates, for 
road metalling or for railway or other ballast, 
shingle and flint, whether or not heat-treated 5 
28.   2517.20.00 -  Macadam of slag, dross or similar industrial 
waste, whether or not in corporating the materials 
cited in subheading 2517.10 5 
29.   2517.30.00 -  Tarred macadam 5 
     -  Granules, chippings and powder, of stones of 
heading 25.15 or 25.16, whether or not heat-treated:   
30.   2517.41.00 - -  Of marble 5 
31.   2517.49.00 - -  Other 5 
  44.02  Wood charcoal (including shell or nut charcoal), 
whether or not agglomerated.   
32.   4402.10.00 - Of Bamboo 15 
33.   4402.90.00 - Other: 15 
  72.04   Ferrous waste and scrap; remelting scrap ingots of 
iron or steel.   
34.   7204.10.00 -  Waste and scrap of cast iron 10 
      -  Waste and scrap of alloy steel:   
35.   7204.21.00 - -  Of stainless steel 10 
36.   7204.29.00 - -  Other 10 
37.   7204.30.00 -  Waste and scrap of tinned iron or steel 10 
     -  Other waste and scrap:   
38.   7204.41.00  - -  Turnings, shavings, chips, milling waste, 
sawdust, filings, trimmings and stampings, 
whether or not in bundles 10 
39.   7204.49.00 - -  Other 10 
40.  7204.50.00 - Remelting scrap ingots 10 WT/ACC/SPEC/LAO/5/Rev.1 
Page 108  
 
  Table 15: Export Prohibitions 
No. HS Code Goods Purpose Regulation Supervising authority 
1. 9705.00.00 
9706.00.00 Archaeological objects 
including Buddha statues, angel statues 
and holy objects, 
national heritages with historical and cultural 
values of 50 years old 
or older.   For protection 
of national artistic and 
cultural heritage 
"protection of valuable 
national artistic, 
historical and archaeological 
heritage" in 
compliance with Article XX (f) 
of GATT 1994. Article 15 of 
Customs Law. National Heritage 
Law. 
Article 2 Edict on Preservation of 
National cultural, 
historical and natural heritage.  Ministry of 
Information and Culture  
(Heritage 
Department) 
2. 2834 Bat guano/manure  For protection 
of natural 
resources  Article 29, 
Agriculture Law, 
No. 01/98.NA, dated 
10 October 1998. Order of the Minister 
of Agriculture and 
Forestry on the Control and Use of 
Bat Guano in the 
Country No. 0613/MoAF.05, 
dated 8 July 2005. Ministry of 
Agriculture and 
Forestry  
(Agriculture Department)  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 109 
 
 
  Table 16:  Goods Subject to Non-Automatic Export Licensing 
No HS Code Product Reason Responsible Agencies 
1. 4403 
4407.10-4407.28 
0601 Logs, trunk, bark, rough-
processed timber and semi-finished timber from natural 
forest For monitoring the 
conformity of the implement the Chain of 
Custody System (CoC) Ministry of Industry and 
Commerce (Department of Import and 
Export) 
2. 7108.12.10 Gold bars ( only for gold bars as 
internationally recognized as medium of payment) For exchange stability Bank of Lao PDR 
(Monetary Policy Department) 
 WT/ACC/SPEC/LAO/5/Rev.1 
Page 110  
 
  Table 17:  Goods Subject to Automatic Export Licensing 
No HS Code Products Reasons Responsible Agencies 
1. 4403 
4407.10-4407.28 
0601 Logs, trunk, bark, rough-
processed timber and semi-finished timber from 
plantations For monitoring the 
conformity of the implement the Chain of 
Custody System (CoC) Ministry of Industry and 
Commerce (Department of Import and 
Export) 
2. 1006 Rice, Rice in the husk, husked 
(brown) rice,  semi-milled or 
wholly milled rice, whether or not polished or glazed For statistical purpose Provincial, Vientiane 
Capital Department of 
Industry and Commerce 
3. 2601-2617 Minerals and mineral products For statistical purpose Ministry of Energy and 
Mines (Mining Department)  
   WT/ACC/SPEC/LAO/5/Rev.1
 Page 111Table 20:  Action Plan for the Implementation of the WTO TRIPS Agreement 
Agreement on Trade Related 
Aspects of Intellectual Property 
Rights Laws/Actions Implementation Timeframe Remarks 
General Provisions: 
Participation in Intellectual Property Conventions Participation in: 
- World Intellectual Property Organization - Paris Convention 
- Patent Cooperation Treaty 
- Berne Convention - Rome Convention 
- Washington Treaty on Intellectual Property in 
Respect of Integrated Circuits  
Since 1995 Since 1998 
Since 2006 
Since 2012 Deferred 
Deferred  
  
 
 (Deferred due to technical capacity 
limitations.  Priority has been given to 
ensuring legal framework compliance 
with TRIPS). 
Part II, Section 1: 
Copyrights and related rights Intellectual Property Law  
 Regulation on Notification of Copyright and Related 
Rights Amended in December 2011 
 To be amended by October 2012  TA received from ACWL and USAID.  
 TA received from USAID. 
Part II, Section 2: Trademarks Intellectual Property Law  
 Regulation on trademarks and Trade Names 
 
Trademarks Registry System Amended in December 2011 
 To be issued by October 2012  
 
Set up in 1991 In force. 
 TA received from USAID. 
 
TA received from EU and USAID. 
Part II, Section 3: 
Geographical indications Intellectual Property Law 
 
Regulation on geographical indications 
 Setting up of the Geographical Indications Registry Amended in December 2011 
 
To be issued by December 2012  
 To be set up by December 2012 In force. 
 
TA received from USAID. 
 TA sought from EU and USAID. 
Part II, Section 4: 
Industrial designs Intellectual Property Law 
 
Regulation on industrial designs 
 
Setting up of the Industrial Designs Registry Amended in December 2011 
 
To be issued by October 2012 
 
Set up in 2002 In force. 
 
TA received from USAID. 
 
TA received from EU and WIPO. 
Part II, Section 5: Patents Intellectual Property Law 
 
Regulation on patents and petty patents 
 Setting up of the Patent Registry Amended in December 2011 
 
To be issued by October 2012  
 Set up in 2002 In force. 
 
TA received from USAIDs. 
 TA received from EU, USAID and 
WIPO.  
  WT/ACC/SPEC/LAO/5/Rev.1 
Page 112 Agreement on Trade Related 
Aspects of Intellectual Property 
Rights Laws/Actions Implementation Timeframe Remarks 
Part II, Section 6: 
Layout-designs (Topographies) of integrated circuit 
 
 Intellectual Property Law 
 Regulation on integrated circuits Amended in December 2011 
 To be issued by December 2012 In force. 
 TA received from USAID. 
Part II, Section 7: Undisclosed information Intellectual Property Law 
 Amended in December 2011 
 In force. 
 
Part II, Section 8: 
Control of anti-competitive 
practices in contractual licence Intellectual Property Law  
 
 Amended in December 2011 
 
 In force 
 
 
Part III, Section 2: Civil and administrative 
procedures and remedies Intellectual Property Law  
 
Law on Civil Procedures 
 Petition Handling Law 
 
Court Fee Law  
 
Law on People's Courts  
Judgment Enforcement Law 
 Contract and Tort Law 
 
Economic Dispute Resolution Law Amended in December 2011 
 
Amended in May 2004 
 Amended in November 2005 
 
Amended in December 2006 
 
Amended in November 2009   
Amended in July 2008  
 Amended in December 2008 
 
Amended in December 2010 In force. 
 
In force. 
 In force. 
 
In force. 
 
In force.  
In force. 
 In force. 
 
In force. 
Part III, Section 4: Special requirements related to 
border measures Intellectual Property Law 
 
Customs Law 
 Instruction on Customs Measures for the Protection of 
Intellectual Property Rights Amended in December 2011 
 
Amended in December 2011 
 Issued in September 2011 In force  
 
In force  
 In force 
Part III, Section 5: Criminal procedures Intellectual Property Law 
 Criminal Procedure Law  Amended in December 2011 
 Amended in May 2004 In force. 
 In force.  
   WT/ACC/SPEC/LAO/5/Rev.1
 Page 113Agreement on Trade Related 
Aspects of Intellectual Property 
Rights Laws/Actions Implementation Timeframe Remarks 
Others Enhance public awareness on the protection of 
intellectual property rights.  
Upgrade computeri zation of MOST. 
  
Trainings for users (development of information 
brochure and training program).  
Trainings on copyrights, industrial property and plant 
variety protection for enforcement authorities such as customs officials, trade in spectors, policemen, judges, 
prosecutors and lawyers. 2012 to 2015 
  
2012 to 2015 
  
2012 to 2015 
  
2012 to 2015 TA sought and received from  ACWL, 
EU, KIPO, SIDA, USAID and WIPO.   
TA sought and received from  ACWL, 
EU, KIPO, SIDA, USAID and WIPO.   
TA sought and received from  ACWL, 
EU, KIPO, SIDA, USAID and WIPO.   
TA sought and received from  ACWL, 
EU, KIPO, SIDA, USAID and WIPO.  
   
 
Note:  The above transition strategy for the implementation of WTO Agreement on Trade-Related Aspect of Intellectual Property R ights (TRIPS) would be achieved latest by 
December 2015 based on tec hnical assistance and national capacity.  The Lao PDR Government avails itsel f to special and differe ntial treatment for Least-Developed-Countries 
under the TRIPS Agreement and various Minister ial Conference Declarations such as paragr aph 47 of the Hong Kong Ministerial Dec laration and refers in IP/C/40. WT/ACC/SPEC/LAO/5/Rev.1 
Page 114  
 
  Table 21:  Fees for Intellectual Property Registration 
Action Fee (US$ per mark or item) 
TRADEMARKS 
Trademark registration or trademark renewal 80 
- Each class (fee per class) 5 
Transmission 20 
Consultation for the registration 5 
Search of Trademark 10 
Modification of items of the application 10 
Publication 20 
Application per form 2 
PATENTS 
Official fees: 
 
1. Official fee for granted patent  
 
30 
Regular services fees: 
 1. Application form for registration of invention 
2. Consultation on invention  
 
20 
10 
Irregular services fees: 
 
1. Request against registration 
2. Amendment of application for registration 
3. Assignment or licensing of patent rights 4. Duplicate of patent  
 
20 
10 
40 
10 (per copy) 
Fee charge of each search report relies on the calculation of relevant 
foreign examination body or international organization. 
 In order to maintain the patent, an an nual official fee and service fee shall 
be paid by the owner of invention are as follows: 
 - 5th year: Official fee 
   Services fee 
- 6th year: Official fee    Services fee 
- 7th year: Official fee 
   Services fee 
- 8th year: Official fee 
   Services fee - 9th year: Official fee 
   Services fee 
- 10th year: Official fee    Services fee 
- 11th year: Official fee 
   Services fee - 12th year: Official fee 
   Services fee 
- 13th year: Official fee    Services fee 
- 14th year: Official fee 
   Services fee - 15th year: Official fee 
   Service fee 
- 16th year: Official fee    Services fee  
 
  
 
 
30 
20 
40 20 
50 
20 
60 
40 80 
60 
100 
80 
140 
100 180 
120 
230 150 
280 
180 330 
210 
390 250  WT/ACC/SPEC/LAO/5/Rev.1 
 Page 115 
 
 
  Action Fee (US$ per mark or item) 
- 17th year: Official fee 
   Services fee 
- 18th year: Official fee    Services fee 
- 19th year: Official fee 
   Services fee 
- 20th year: Official fee 
   Services fee 450 
300 
510 350 
570 
400 
650 
450 
PETTY PATENTS 
Official fees: 
 
1.  Official fee for granted petty patent   
 
30 
Regular services fees: 
 
1.  Application form for registration of device 
2.  Consultation on device  
 
10 
10 
Irregular services fees: 
 
1. Request against registration   
2.  Amendment of application for registration   
3.  Assignment or licensing of petty patent rights      4.  Duplicate of petty patent   
 
10 
10 
40 
10 (per copy) 
In order to maintain the petty patent, an annual official fee and service 
fee shall be paid by the owner of device are as follows: 
 - 2nd year: Official fee 
   Services fee 
- 3rd year: Official fee 
   Services fee 
- 4th year: Official fee    Services fee 
- 5th year: Official fee 
   Services fee - 6th year Official fee 
   Services fee 
- 7th year: Official fee    Services fee  
 
 
10 
15 
20 
15 
30 20 
40 
25 50 
30 
70 35 
INDUSTRIAL DESIGNS 
Official fees: 
 1. Official fee for certifi cate of industrial design  
 
20 
Regular services fees: 
 
1. Application form for registration of industrial design  
2. Consultation on industrial design  
 
10 
10 
Irregular services fees: 
 1. Request against registration 2. Amendment of application for registration 
3. Assignment or licensing of rights of industrial design 
4. Duplicate of industrial design  
 
10 10 
40 
10 (per copy) WT/ACC/SPEC/LAO/5/Rev.1 
Page 116  
 
  Action Fee (US$ per mark or item) 
In order to maintain the industrial design, an annual official fee and 
service fee shall be paid by the owner are as follows: 
  2nd year: Official fee 
   Services fee 
 3rd year: Official fee 
   Services fee 
- 4th year: Official fee    Services fee 
- 5th year: Official fee 
   Services fee - 6th year – 15th year: 
   Official fee 
   Services fee  
 
 
10 
5 
15 
8 
20 11 
25 
11 
 
30 
20 
 
Remark: 
In addition to the official fee for registration of inventio n, device or industrial design, the Registry Unit is asked 
to gather a contribution fund from the owner of patent, petty patent and industrial design for publication of the result of the patent registration US$40, device registration US$30, and industrial design registration 
US$30 per item. 
 
 
__________