RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/LAO/12 
20 July 2007 
 
 (07-3100) 
Working Party on the 
Accession of Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Action Plan on the Legislative Work and  
Implementation of the Customs Valuation Agreement  
 
  The following submission, dated 9 July 2007, is being circulated at the request of the Government of Lao People's Democratic Republic (Lao PDR).  
_______________ WT/ACC/LAO/12 
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  Initial WTO Customs Valuation Agreement Implementation/Technical Assistance Plan
 
Year Steps/Measures/Activities Technical Assistance 
2005/2006 Current Development and On-going Programmes:  
 
- Revised Customs Law adopted by National Assembly in 
May 2005 to ensure WTO compliance and to meet World Custom Organization (WCO) standard; 
- Drafting of regulation (Prime Minister's Implementation 
Decree and the Ministry of Finance Introduction on the Customs Law) to be complete legislative package of law and 
regulation fully compliant with WTO requirement; 
- Technical training in va luation techniques; and 
- Creation of Post Clearance Audit. Technical Assistance 
needed 
2007 - Preparation of detailed WTO Customs Valuation Agreement 
(CVA) implementation plan; 
- Development of transition strategy and plan for 
implementation of Customs Valuation Agreement; 
- Commence automation project implementation; - Implement post clearance audit program; 
- Preparation of department valuation technical procedure 
manual; 
- Development of technical training program; 
- Implement revised law on customs including regulation; 
- Commence trade outreach progra m (consultation/information 
giving); and 
- Begin reduction of list of goods subject to determined value 
by government and begin move to transaction value. Technical Assistance 
needed 
2008 - Provide training to st aff and traders in WTO Customs 
Valuation Agreement; 
- Implement automated customs processing system; 
- Implement WTO Customs Valuation Agreement (subject to 
accession process); 
- Commence implementation provision; and 
- Provide transitional assistance and guidance to traders. Technical Assistance 
needed 
 
 The Ministry of Finance will implement the provisions of the WTO Customs Valuation Agreement including use of transaction value pr ocedures and the related techniques for properly 
determining the customs value of imports. 
 
 The Customs Department currently applies mini mum values to a large number of products in 
order to provide consistency of treatment and to de ter valuation fraud.  Moving too quickly to full 
application of the WTO Customs Valuation Agreemen t and eliminating use of the minimum price list 
would place the revenue at grave risk. 
 While the WTO Customs Valuation Agreement provides (in Annex III, Paragraph 2 to the 
Agreement) for a transition period for developing countries, the use of mini mum values will have to 
be phased out and replaced with the transacti on value provisions of the Customs Valuation 
Agreement. 
 The challenges facing the Lao PDR Customs De partment in implementing the WTO Customs 
Valuation Agreement provisions include the low ra te of voluntary compliance by importers, their lack 
of sound accounting systems and record keeping, and the limited capacity of the Department to 
administer WTO Customs Valuation Agreement valuation provisions.  WT/ACC/LAO/12 
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   A transition plan is necessary to educate im porters on the new valuation provisions and on 
customs' requirements for importer record keeping and accounting systems.  Time is also required for 
the Customs Department to deve lop its valuation procedures and policies, to strengthen the post 
clearance audit program, to develop information technology support systems including a valuation 
reference database, and to fully train staff. 
 The Customs Department will require extensiv e technical assistance and advice in preparing 
and implementing its transition plan. 
2009  
By the end of year 2009, Customs will achieve the following results: - Full implementation of the post clearance audit pr ocedures.  The department will be able to 
carry out post release review of Customs declara tion and to verify accuracy of declared value 
(based on the PCA Strategic plan and work plan); 
- Complete training of all Customs staff and traders in the application of the WTO Customs 
Valuation Agreement; 
- Improvements to the reference price lists to  make them more accurate and timely; and 
- Strengthen C-2000 system to provide information and reports by selected, low risk importers.  
To begin, transaction value (and the other methods  provided in the agreement) would be used 
for imports by state agencies, international or ganization, other exempt  importers, and select 
importers of low risk goods.  Importers would be required to provide supporting information 
on the price actually paid and freight and in surance and other dutiable charges for their 
imports.  They would also have to mainta in and make available the required books and 
records for audit.  Use of "Valuation Declar ations" may also be introduced to assist the 
Department administer and enforce the new provisions. 
2010
 
By the end of year 2010, Customs will achieve the following results: - WTO Customs Valuation Agreement provisions  would be applied to  imports by large 
multinational and Lao PDR companies that have well established compliance records with the 
Department, and are importing low risk products.  A select list of low risk products will be 
developed; 
- The minimum price lists will be developed into  an automated "valuation reference database" 
and used primarily as a reference source in de termining customs value.  As the valuation 
reference database is developed, other smalle r importers of these products would be permitted 
to participate based on their compliance record s and their agreement to meet the conditions 
outlined above: and 
- Minimum price list will continue to be used for a short list of very sensitive products that pose 
a high risk for revenue. 
2011
 
By the end of year 2011, Customs will achieve the following results: 
- The valuation provisions will be used for all im ports other than those specifically identified as 
high revenue risk.  High risk will be based on the assessed risk of the importers, of the 
product, origin of goods etc.; 
- The number of items on the minimum price list will be reduced to a minimum; and 
- A fully automated customs processing system , including a sophisticated selectivity function 
to identify potential cases of undervaluation will be operational.  This will include "unit value 
ranges" based on the valuation reference da tabase and any goods remaining on minimum 
price lists. WT/ACC/LAO/12 
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  2012
 
By the end of year 2012, Customs will achieve the following results: - WTO Customs Valuation Agreement w ill be fully applied to all imports. 
Note:  Lao PDR has provided information relating to its overall customs modernization plan for transparency 
purposes.  It is not necessarily Lao PDR's view that all of the reforms outlined are required under the Customs 
Valuation Agreement. 
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