RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/LAO/12/Rev.1 
9 May 2008 
 (08-2200) 
Working Party on the 
Accession of the Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Action Plan on the Legislative Work and  
Implementation of the Customs Valuation Agreement  
 
Revision  
   The following submission, dated 22 April 2008, is being circulated at the request of the 
Government of Lao People's Democratic Republic (Lao PDR). 
 
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  Year Steps/Measures/Activities Technical 
Assistance 
2005/ 2006 - (Revised) Customs Law adopted by National Assembly in 
May 2005 based on key principles of the Customs Valuation Agreement (CVA) of the WTO; 
- Drafted the Prime Minister's Decree on implementing the 
Customs Law; 
- Technical training in valuation techniques; and - Creation of Post Clearance Audit. Assistance received 
from IMF on building legal framework.  
2007 - Became the 171th member of the World Customs 
Organization (WCO) in January 2007; 
- Commenced post clearance audit program; - Development of technical training program; and - Decree No. 362/PM implementing the Customs Law  
        adopted 19 October 2007; Assistance received 
from IMF on building legal framework. 
2008 - Preparation of the work plan for compliance with the WTO 
CVA; 
-       Provision of training to staff and traders on WTO CVA;   -       Provision of trans itional assistance and guidance to  
        traders; and   -      Commencement of trade outreach program   
(consultation/information giving).  Assistance project 
is under preparation with the World Bank on customs facilitation.  
  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. 
 The Customs Department currently applies mini mum values to a large number of products in 
order to provide consistency of treatment and to  deter valuation fraud.  Moving too quickly to 
application of the WTO Customs Valuation Agreement and eliminating use of the minimum price list, 
before alternative anti-fraud procedures can be  adopted, would place the revenue at risk. 
 While the WTO Customs Valuation Agreement provides (in Annex III, Paragraph 2 to the 
Agreement) for a transition period for developi ng countries, the use of minimum values will be 
phased out and replaced with the transaction value pr ovisions of the Customs Valuation Agreement. 
 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 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 Cust oms Department will require extensive technical 
assistance and advice in preparing and implementing its transition plan.  WT/ACC/LAO/12/Rev.1 
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  Specifically, the action plan foresees th e following objectives and timelines: 
2009  
By the end of year 2009: -        Preparation of valuation technical procedure; 
-  Commence automation project implementation; 
-  Full implementation of the post clearance audit procedures.   
-   The department will be able to carry out pos t release review of Customs declaration and to 
verify accuracy of declared value (based on th e PCA Strategic plan and work plan); and 
-  Begin reduction of list of goods subject to de termined value by government and begin move 
to transaction value. 
2010
 
By the end of year 2010:  - 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 
- Introduction of the ASYCUDA system to provide  information and reports by selected, low 
risk importers.  To begin, transaction value (a nd the other methods provided in the agreement) 
would be used for imports by state agencies,  international organizations, 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 insurance and other dutiable 
charges for their imports.  They would also have  to maintain and make available the required 
books and records for audit.  Use of "Valuation Declarations" may also be introduced to assist 
the Department administer and enforce the new provisions. 
2011
 
By the end of year 2011: - 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 would be used for a short list of very sensitive products that pose a high 
risk for revenue. 
2012
 
By the end of year 2012: 
- The valuation provisions will be used for all imports with a highly limited number of 
exceptions for imports specifically identified as high revenue risk for which the minimum WT/ACC/LAO/12/Rev.1 
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  price list would apply.  High risk will be based  on the assessed risk of the importers, of the 
product, origin of goods etc.; 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. 
- WTO Customs Valuation Agreement will be fully 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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