RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/LAO/16 
6 May 2008 
 (08-2135) 
Working Party on the 
Accession of Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Additional Questions and Replies  
 
 
 The following submission, dated 21 April 2008, is being circulated at the request of the Government of Lao People's Democratic Republic (Lao PDR).   
_______________ 
  WT/ACC/LAO/16 
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 TABLE OF CONTENTS 
II. ECONOMIC POLICIES..........................................................................................................1  
- Investment Regime.............................................................................................................. ......1  
- State Ownership and Privatization .........................................................................................2  
- Pricing Policies ............................................................................................................... ...........2  
- Competition Policy............................................................................................................. .......4  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ......................................4  
- Powers of Executive, Legislative and Judicial Branches of Government ............................4  
- Authority of Sub-Central Governments .................................................................................5  
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................5  
- Trading Rights ................................................................................................................. .........5  
A. IMPORT REGULATIONS......................................................................................................8  
- Tariff rate quotas, tariff exemptions.......................................................................................8  
- Fees and charges for services rendered...................................................................................9  
- Application of internal  taxes to imports .................................................................................9  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............10  
- Customs valuation.............................................................................................................. .....13  
- Rules of origin ................................................................................................................ .........14  
B. EXPORT REGULATIONS ...................................................................................................14  
- Export rest rictions ............................................................................................................ ......14  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................15  
- Industrial policy, including subsidies....................................................................................15  
- Technical barriers to trade, standards and certification.....................................................16  
- Sanitary and phytosanitary measures...................................................................................18  
- Trade-related investment measures ......................................................................................26  
- State-trading entities......................................................................................................... ......27  
- Free zones, special economic areas........................................................................................29  
- Agricultural policies.......................................................................................................... ......29  
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................30  
- GENERAL........................................................................................................................ .......30  
- Application of national and MFN treatment to foreign nationals......................................30  
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING 
PROCEDURES FOR THE ACQUISITION AND MAINTENANCE OF INTELLECTUAL PROPERTY RIGHTS ...........................................................................31
 
- Copyright and related rights..................................................................................................3 1 WT/ACC/LAO/16 
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 - Trademarks, including  service marks...................................................................................34  
- Geographical indications, including appellation of origin ..................................................34  
- Patents........................................................................................................................ ..............34  
- ENFORCEMENT...................................................................................................................3 5 
VI. POLICIES AFFECTING TRADE IN SERVICES..............................................................36  
 
  WT/ACC/LAO/16 
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 II. ECONOMIC POLICIES 
- Investment Regime Question 1 Paragraph 24 of the Factual Summary, Questio n 12 of WT/ACC/LAO/11:  We note that in 
order to qualify for incentives, foreign compan ies must use more than 50 per cent local raw 
material (local content requirement).  We note  that this requirement is incompatible with 
TRIMs. 
We would ask Lao PDR to submit an action  plan for phasing out these local content 
requirements. 
Answer:
 
As indicated in the response to Question 12 of document WT/ACC/LAO/11, Lao PDR wishes to 
recall the Ministerial Decision at Hong Kong, China,  with respect to a transition period as regards 
TRIMs, including local content requirements, for LDCs in light of their financial, trade and 
development needs (Hong Kong Ministerial Declar ation, paragraphs 35-36 and Annex F).   
Lao PDR takes note of the request for submission of an such action plan.  Question 2 Factual Summary (page 7, paragraph 20, Table 2):  Table 2 shows "Activities Closed to Foreign 
Investment".  
Are the foreign enterprises registered in Lao PDR allowed to establish their own business 
chambers or join the General Chamber of Comm erce and Industry of Lao PDR?  If yes, please 
provide details of the procedure? 
Answer:
 
The statute, the Articles of Association, estab lishing the Lao National Chamber of Commerce and 
Industry (LNCCI) does not provide for the creation of  own or joint chambers of industry of commerce 
by foreign enterprises registered in Lao PDR.  Any enterprise, foreign-owned, joint venture or 
domestically-owned registered in accordance with laws and regulations of  Lao PDR may apply for 
membership of the LNCCI and its business associations or groups.   
Question 3 
Thank you for clarifying (Factual Summary, par agraph 19) the legislative basis for investment 
regulation.  Could you provide details on which activities fall under the different categories of Implementing Decree No. 301/PM, as either open to foreign investment, conditionally open to 
foreign investment, or open to foreign invest ment subject to concessions granted by the 
Government?  Also, could you provide more detail of the six conditions referred to in paragraph 23, three of which foreign companies must fulfil in order to access investment 
promotion incentives? WT/ACC/LAO/16 
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 Answer:  
Details of activities that fall under the different categories as those open to foreign investment, 
conditionally open to foreign invest ment, or open to foreign investment subject to concessions granted 
by the Government are provided for in Implementing Decree of the Law on the Promotion and 
Protection of Foreign Investment No. 301/PM  dated 12 October 2005, Articles 23, 24 and 25 
respectively, as well as Annexes 3 and 4.  A copy of this Decree is available in document WT/ACC/LAO/5/Add.1 refers.  
As provided for in Annex 2 of the Decree No. 301/PM, three of six conditions must be met for 
qualifying for investment incentives.  These are: 
- Must use local labour at least 90 per cent of total labour during the term of investment; 
- Must use local raw material more than 50 per cent of total production cost; - Must use model technology; - Must preserve the environment according to the Law on Environmental Protection; - Must be promoted activities to other domestic production; and - Must have production activities for export at least 80 per cent of total production cost. 
- State Ownership and Privatization Question 4 Factual Summary (pages 9 and 10 , paragraphs 26 and 27, Table 5):  According to the report, 
in 2002, 37 enterprises remained State-owned, a nd no plans had been formulated to privatize 
them. 
- Please elaborate further on why the Lao PDR Government has no plans to privatize 
these State-owned enterprises? 
- We would appreciate receiving detailed information on the progress of privatization of 
State-owned enterprises up to 2007. 
Answer:
 
Privatization of State-owned Enterprises (SOEs) in Lao PDR had started in 1990 following the 
enforcement of Ministers Council's Resolution No. 17/PCM dated 16 March 1990 on the Transfer of 
Ownership of State-owned Enterprises.  Conseque ntly, the number of SOEs has decreased from 
800 units in 1990 to 37 units in 2002. 
Lao PDR has a policy that SOEs of key importance to the economic and social development, national 
defence and security of the country shall not be priv atized.  The current 37 SOEs are considered to be 
under the above-mentioned category of SOEs.   
- Pricing Policies 
Question 5 
With respect to the information provided on pr icing policies in paragraph 28 of the Factual 
Summary: 
- Could the representative of Lao PDR provide specific HS numbers for the products that 
fall within the categories listed in Table 6 (Price controls in Lao PDR)?  WT/ACC/LAO/16 
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 - Additionally, could the representative provide explanations for why the specific groups 
of products are subject to price surveillance? 
Answer:  
Please note that Table 6 in the Factual Summary di stinguishes between "price control" measures and 
"price surveillance" measures, which are not the same.  Lao PDR would request that the title of 
Table 6 of the Factual Summary reflect that the table refers to both price controls and price 
surveillance. 
Lao PDR takes note of Members' requests on assigning HS numbers.  Price surveillance involves monitoring against a high price increase which can impact on social or 
consumer welfare caused by currency fluctuations or hi gh inflation.  It is not a price control whereby 
the Government intervenes in the market price. 
Question 6 
Factual Summary (page 11, paragraph 28, Tabl e 6):  The report lists 30 products/product 
groups subject to price controls, and among th ese, fuel and gas are subject to maximum price 
measures. 
- How does the maximum price measure operate? 
- Does the Lao PDR Government have any plan to relax the price controls on these 
products? 
Answer: 
 
The maximum price is calculated by suppliers, taking into account cost structure, including profit 
margin.  The proposed maximum price is then subm itted to the Internal Trade Department of the 
Ministry of Industry and Commerce for considerati on and approval.  The Internal Trade Department 
will verify, and if approved, monitor maximum price in the market. 
The Internal Trade Department under the Ministry  of Industry and Commerce is in the process of 
amending the Ministerial Instruction No. 0334/MO C/ITD dated 22 March 2002.  Consequently, the 
list of goods under price control an d surveillance will be reduced. 
Lao PDR confirms that as far as maximum prices ar e concerned, the interests of exporting countries 
as provided for in the GATT Article III:9 will be taken into account. 
Question 7 
Factual Summary (page 12, paragraph 29):  The repo rt states, "For rice, price controls implied 
a minimum price in support of farmers' incomes." 
Please could Lao PDR  provide us with details of the price control plan? 
Answer:  
As far as rice is concerned, the Government has annually set minimum pr ice for rice in the husk 
calculated based on the production costs in each year.  The objective is to ensure a minimum revenue 
for poor farmers.  Lao PDR reiterates the necessity  of this measure as around 80 per cent of the WT/ACC/LAO/16 
Page 4 
 
 
 Lao people earn their living from agricultural activiti es, and particularly rice farming and related 
activities.  These are resource poor farmers who are engaged in subsistence farming.  
Question 8 Thank you for explaining (Factual Summary, paragraph 28) that 26 products are subject to 
"price surveillance", which involves trade official s inspecting traders' premises to check that 
prices are adequately displayed, and to "ensure adherence to pricing regulations".  Aside from 
the requirement to display the prices of products , are there additional pricing regulations that 
must be followed? 
Answer: 
 
There are no other requirements. 
- Competition Policy 
Question 9 
Factual Summary (page 12, paragraph 30):  The report states, "The representative of the 
Lao PDR said that Decree No. 15/PM "On Tr ade Competition" of 4 February 2004 provided 
the legal basis for the promotion of fair competition in Lao PDR." 
Could Lao PDR please elaborate further on wh ether the Decree establishes an independent, 
single enforcement agency to ensure optimal development and enforcement of the law? 
Answer:  
The Decree on Trade Competition No. 15/PMO dated 4 February 2004, Article 5 provides for the 
establishment of the Trade Competition Committee w ithin the Internal Trade Department of the 
Ministry of Industry and Commerce.  
As to our knowledge, this is not a WTO treaty obligation, Lao PDR is working to overcome the 
limited human resource and weak institutional capac ity, to establish this Committee.  Nevertheless, 
the Internal Trade Department c ontinues to study from the experience of other countries, including 
that of neighbouring countries.  
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES 
- Powers of Executive, Legislative and Judicial Branches of Government Question 10 Thank you for clarifying that commercial chambers established under the Law "On the 
People's Courts of Lao PDR" would not have jurisdiction over disputes concerning 
administrative actions taken by the Government.  Noting your statement (in paragraph 35) that "in practice, administrative rulings on trade i ssues were rarely redressed in the court system", 
could you provide further information on the avenues available to companies to seek 
enforceable redress of injury incurred as a result of Government actions?  WT/ACC/LAO/16 
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 Answer:   
Cases or disputes relating to administrative relations  are under jurisdiction of the civil chambers of the 
courts as provided for in Article 47 of the Civil Pr ocedure Law, and hence can hear cases relating to 
acts of administrative officials.  The civil cham bers of the courts of Lao PDR therefore have 
jurisdiction over disputes concerning trade-related administrative relations and companies can seek 
redress of injury incurred as a result of G overnment officials in the courts.   
- Authority of Sub-Central Governments 
Question 11 We note the statement (in paragraph 40) that  Lao PDR would "ensure that the sub-central 
authorities comply with WTO obligations".  Could you provide more information on what legal 
avenues are open to companies faced with the a pparent breach by sub-central authorities of 
WTO obligations? 
Answer: 
 
The legal avenues open to companies faced with the apparent breach by sub-central authorities of 
WTO obligations, are provided for in the Law on th e Office of the Public Prosecutor No. 50/NA dated 
21 October 2003.  In particular, Ar ticle 3 of the Law provides for the rights and duties of the Office of 
the Public Prosecutor to monitor and inspect proper and uniform adherence to laws and regulations of 
Lao PDR by all ministries, ministry-equivalent Organisations, Government Organisations, local 
administrations, enterprises, and citizens. 
IV. POLICIES AFFECTING TRADE IN GOODS 
- Trading Rights 
Question 12 From paragraph 43 of the Factual Summary, we understand that a firm in Lao PDR may not 
import products, even for its own use, unless those products are set out in the business certificate. 
Is this correct?  If so, please explain the rati onale for this requirement, and indicate whether 
firms must similarly identify in their business certificate the domestic products  they may  be 
purchasing. 
Answer: 
 
As far as the products do not fall under the list of pr oducts that are prohibited for import or export, a 
firm or enterprise registered in accordance with relevant laws and regulations of Lao PDR may import 
products for its own use.  The requirement to have  the products specified in a business certificate 
relates to firms registered as an import and/or export enterprise to import or export for commercial 
purpose only. 
Question 13 
Lao PDR indicates that persons and firms locate d outside Lao PDR do not have the right to 
import because that right is conditioned on phy sical presence in Lao PDR (paragraph 45).  This 
means that a consumer in Lao PDR may purchase domestic products dir ectly from a domestic WT/ACC/LAO/16 
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 manufacturer, but that same consumer may not purchase products directly from foreign 
producers.  In order for that consumer to purch ase the foreign product, the product must go 
through a firm with a physical presence in Lao PDR.   T h i s  i s  a n  a d d i t i o n a l  s t e p  i n  t h e  s a l e s  
process that is not imposed on domestic produc ts.  As a result, imported products are not 
permitted equal access to the same channels of distribution as domestic products. 
Please explain how Lao PDR will modify its rul es accordingly to allow for trading rights 
consistent with its WTO obligations, specifically  GATT Articles III and XI.  Also, we reiterate 
our request to see Lao PDR's laws governing tr ading rights, including the current requirement 
to have physical presence for importation. 
Answer:  
Any consumer can import products into Lao PDR for his/her own use, subject to the Customs Law.  
Thus, there is no discrimination whether the consum er purchases from domestic or foreign producers. 
Lao PDR is continuing to study whether aspects of  its import regime modify the conditions of 
competition between the foreign and domestic products. 
Question 14 
It appears that, because Lao PDR denies to firm s located outside Lao PDR the right to import 
(paragraph 45), Lao PDR has not provided for registration requirements for such firms (paragraphs 41-42).  In conjunction with modifications to Lao PDR's laws to accord the right to import to persons and firms located outsid e Lao PDR, we request information on the 
registration requirements with which those perso ns and firms will be expected to comply. 
Answer: 
 
Lao PDR currently does not provide su ch a right to firm located outside  the country.  We continue to 
study this issue. 
Question 15 
We thank Lao PDR for their response to Questions 18 and 25 of document WT/ACC/LAO/11. 
- However could Lao PDR please clarify why an importer of vehicles, petroleum, and 
luxury goods must get approval from provinc ial trade officials wh ereas importers of 
other products get justifications issued directly from the Ministry? 
- Why is there a different process for these specific products? 
Answer:  
Additional Questions and Replies (document WT/ACC/LAO/11), the response to Question 18, 
paragraph 3, as confirmed in pa ragraphs 41 and 43 of the Factual Summary, note that business 
registration is required with the Ministry  of Industry and Commerce for these products.  
Question 16 
We appreciate Lao PDR's statement that the list of  areas closed to foreign investment does not 
include "activities related to importation and exportation" (WT/ACC/LAO/11, Question 20).  WT/ACC/LAO/16 
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 However could Lao PDR please provide a copy of Prime Minister's Decree No. 301 or a 
complete list of the sectors closed to foreign investment? 
Answer:  
The activities closed to foreign investment are cont ained in Table 2 of the Factual Summary, which is 
taken from the Prime Minister Decree Implemen ting the Law on the Promotion and Protection of 
Foreign Investment No. 301/PM.   
Its full copy has been provided to the WTO Secr etariat.  See document WT/ACC/LAO/5/Add.1.  
Question 17 
We note that in response to Question 22 in WT/ACC/LAO/11, Lao PDR indicates that in order 
to import, a person or firm must have a "licence of import". 
Please explain whether this means that they may import subject only to the registration 
requirements set out in paragraphs 41-42 of the Factual Summary, or whether there is a separate "licensing" procedure for perso ns and firms that wish to import. 
Answer: 
 
The business registration as outlined in paragraphs 41- 42 of the Factual Summary is different from the 
licence of import which is required for each importation outlined in paragraphs 56-61. 
Question 18 
Paragraph 45 of the Factual Summary, Questi on 17 of WT/ACC/LAO/11:  Lao PDR explains 
that foreign companies are allowed to export an d import, provided that they are registered in 
Lao PDR and "have a physical presence".  We would ask Lao PDR to clarify the meaning of a 
"physical presence"?  Does this mean establishmen t in Lao PDR?  The question would be, can a 
foreign company and an individual carry out expo rt and import as an exporter and/or importer 
or record, without establishing itself (making and investment) in Lao PDR? 
Answer:  
The requirement to "have a physical presence" means that the firm shall be registered as an import 
and/or export enterprise in accordance with re levant laws and regul ations of Lao PDR. 
Lao PDR does not provide for import and export to be  carried out by individuals or firms which do 
not have a physical presence in the country. 
Question 19 
Question 18 of WT/ACC/LAO/11:  We wonder why it is not possible to register imports of 
vehicles, petrol and luxury goods directly to the Ministry of Industry and Commerce.  Could 
Lao PDR explain what is the verification needed from provincial offices and why is this 
necessary? 
Answer:  
See the response to Question 15. WT/ACC/LAO/16 
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 Question 20 
Question 20 of WT/ACC/LAO/11:  In what register should a foreign company or individual 
register itself if it wants to import or ex port as an importer or exporter of record? 
Answer:  
See the response to Questions 13, 14 and 18. 
Question 21 
Factual Summary (page 17, paragraph 43):  Fuels and gas are subject to additional 
requirements (safe handling);  petroleum (together with other goods) is subject to eight general 
criteria for import/export registration. 
Could Lao PDR please provide further clarification of the content and review processes for 
these specific restrictions or requirements on importing fuels, gas, and petroleum? 
Answer:  
Paragraph 43 of the Factual Summary refers to eight  criteria in the Abrogated Ministerial Regulation 
No. 462/MOC of 8 December 1993, which has been replaced by Prime Minister's Decree No. 206/PM of 10 October 2001.  The requirements of importi ng fuel and gas are outlined in WT/ACC/LAO/5, 
Question 20. 
Question 22 
Thank you for providing more information on th e process of obtaining licenses for importation 
and exportation.  Noting that registration at Ministry level is required for "enterprises engaged 
in importation of vehicles, petroleum and luxury goods, or exportation of wood and wood 
products; and for foreign-invested  enterprises with a registered capital of US$200,000 or more", 
can you explain the practical effect of this requirement, on the approval process and processing 
times? 
Answer:
  
As outlined in paragraph 41 of the Factual Summa ry, the above-mentioned categories of enterprises 
are registered at the Ministry of Industry and Commerce with the purpose of division of labour 
between the central and local authorities.  This ai ms at speeding up the process of approval and time 
in light of limited institutional capacity  and the number of personnel.   
A. IMPORT REGULATIONS 
- Tariff rate quotas, tariff exemptions Question 23 
Factual Summary (page 18, paragraph 50):  The repo rt states that, "A tariff of one per cent was 
levied on investment goods under the foreign investment regime, and yarn and textiles used in the production of exported garment s were exempt from import duty." 
- What is Lao PDR's definition of "investment goods"? 
- Is the same one per cent tariff levied on Lao PDR's domestic enterprises?  WT/ACC/LAO/16 
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 Answer:  
"Investment goods" means raw materials, intermediate  components and parts, machinery, equipment, 
and other materials used in the invest ment projects of productive enterprises.  
The import duty exemption/reduction incentive is  applied to investment goods imported for 
processing into the final goods. 
- Fees and charges for services rendered 
Question 24 We note (from paragraph 51) that import perm its for food products attract an additional 
processing fee of 0.05 per cent of the value of the import.  Could you explain how this fee is 
justified, and whether it relates to the actual costs of processing import permits for food? 
Answer: 
 
The ad valorem  fee for food imports is being reviewed and is expected to be converted to a specific 
sum payment.  
- Application of internal taxes to imports 
Question 25 
JOB(07)/160, paragraphs 53-55:  The Secretaria t notes that according to Article 14 of the 
Tax Law, the taxable base for turnover tax on imported goods included import duty and excise 
tax, if applicable, whereas domestically-produ ced goods circulated in Lao PDR were taxed on 
the basis of the actual sales price, the actual  value of the contract for goods produced under 
contractual arrangements, the to tal services income for services providers, and the actual price 
paid by the customers for sales on credit. 
Furthermore, the Secretariat notes that Lao PD R intends to replace the turnover tax with a 
value added tax (VAT) by January 2009.  Howe ver, enterprises not required to pay the VAT 
would continue to comply with the turnover tax. 
Can Lao PDR please explain further how the VAT  and turnover tax will be applied?  In 
particular, can Lao PDR please explain how these t ax systems are consistent with Article III?   
Answer:  
The application of turnover tax and VAT in different  business turnover thresholds is for the effective 
implementation, including registration and monito ring, given the complexity of the VAT, limited 
institutional capacity, and the nature of businesses in Lao PDR which are dominated by small and 
medium sized enterprises.   
In addition to paragraph 55 of the Factual Summa ry, Lao PDR is working on replacing the turnover 
tax with the VAT as per the timeline indica ted in the revised Legislative Action Plan 
(WT/ACC/LAO/9/Rev.2).  Lao PDR is making every effort to bring its tax regime in line WTO 
obligations.  WT/ACC/LAO/16 
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 Question 26 
We welcome Lao PDR's announcement (in paragra ph 55) that turnover tax would be abolished 
in favour of a value added tax (VAT) by January  2009.  We note that only enterprises with 
annual turnover exceeding KN 400 million will be  required to comply with the new VAT 
regime; other enterprises would continue to pay turnover tax.  Can you explain the WTO 
justification for applying a different tax regime to some businesses only? 
Answer:   
See the response to Question 25. - Quantitative import restrictions, including prohibitions, quotas and licensing systems 
Question 27 Lao PDR noted that certain products were added to  the "list of goods requiring approval from 
the ministries concerned" including logs  and medical supplies (WT/ACC/LAO/11, 
Questions 29 and 33). 
- Is this list different from the list of goods subject to import licensing (paragraph 57, 
JOB(07)/160)? 
- If yes, can Lao PDR please provide the WTO with the new complete list of such goods 
(with HS numbers) requiring such approval? 
Answer: 
 
The list of goods in the Factual Summary JOB(07) /160 is the same as the list in WT/ACC/LAO/11, 
but the former is more updated.  
It is worth nothing that the Ministry of Industry and Commerce is in the process of revising the 
Notification No. 1376/MOIC.DIMEX dated 10 Oct ober 2006, with a view to streamlining and 
facilitating import and export procedures.   
Under the draft revised Notification, the list of goods that require import-export licensing has been 
specified with HS code, description of goods, and responsible agencies.  
Question 28 We appreciate all the work Lao PDR is undertak ing to ensure its import licensing regime is 
WTO consistent.  We look forward to any info rmation Lao PDR can provide on the new regime 
(WT/ACC/LAO/11, Questions 30, 38). 
When does Lao PDR expect to have a new import licensing regime in place?   
Answer: 
 
Lao PDR is preparing an Action Plan on bringing  its import-export regime into compliance with 
Import Licensing Procedures (ILP) Agreement.  Once completed, it will be submitted to the WTO Secretariat.  WT/ACC/LAO/16 
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 Question 29 
Lao PDR notes that it does not have specific provisions on existing regulations governing the 
timeframe the Government of Lao PDR will allow for the processing of import applications.  
We urge Lao PDR to implement an import li censing application process that is fully WTO 
compliant (WT/ACC/LAO/11, Question 49). 
Answer:  
See the response to Question 27.  
Question 30 
We appreciate the work Lao PDR has done to narro w the list of prohibited products (Table 8, 
paragraph 56, JOB(07)/160). 
We request that Lao PDR please update this table with the list of relevant HS codes. 
Answer:   
See the response to Question 27.  
Question 31 
We thank Lao PDR for providing an updated list of goods subject to import licensing (Table 9, 
paragraph 57, JOB(07)/160). 
We request that Lao PDR please update this table with the list of relevant HS codes.   
Answer:  
See the response to Question 27.  
Question 32 
The Secretariat's report, paragraph 58, notes that, "The relevant authorities could elaborate 
their own detailed lists of goods subject to impo rt or export control."  We recommend that 
Lao PDR provide a table of these specific pr oducts formatted in the following manner: 
HS Number Product Description Ministry or 
Government Agency 
Responsible for 
Import/Export Control Fee(s) for Import 
Licence 
 
Answer:  
See the response to Question 27.  
Question 33 
We respect Lao PDR's right to prohibit trade for security reasons. 
- However could Lao PDR please clarify what "under strict control of the Ministry of 
Information and Culture" (WT/ACC/LAO/ 5, Annex VI) means with regards to WT/ACC/LAO/16 
Page 12 
 
 
 "receivers and transmitters through satelli tes, internet, equipment for radio 
broadcasting and television station"?  These pr oducts are not on the list of prohibited 
products (Table 8) or the list of products subject to import licensing (Table 9); and 
- How does Lao PDR treat these products?  Ca n Lao PDR please provide a list of relevant 
HS codes? 
Answer:  
The import and export of receiving and transmitting radio equipment has to be subject to import-
export licensing for the purpose of national security a nd frequency safety.  This item is now added to 
the revised list.  
See also the response to Question 27. Question 34 Paragraph 61 of the Factual Summary, Question 40 of WT/ACC/LAO/11:  Could Lao PDR 
indicate any timeline for revising its licensing system?  
This area should be added to the legislative action plan. 
Answer: 
 
See the response to Question 28.  
Question 35 
We are pleased that the list of products subject to import prohibitions has been shortened to 
five product groups, and that Lao PDR will be supplying the HS codes of affected goods in due 
course (paragraph 56).  Noting (in paragraph 58) that other authorities could establish their own lists of goods subject to import controls, could you explain how these lists are developed 
and promulgated? 
Answer:
  
See the response to Question 27 as regards the progress on revising the Notification 
No. 1376/MOIC.DIMEX dated 10 October 2006.  The Ministry of Industry and Commerce is 
consulting with relevant line ministries how to cons olidate the list of goods that require approval and 
are prohibited from import and export. 
Question 36 
Can you provide more information on the process by which approval can be obtained from the 
Prime Minister's Office for the importation of ordinarily-prohibited goods under "exceptional 
cases"? 
Answer:   
See the response to Question 31, the penultimate pa ragraph, of additional Questions and Replies 
(WT/ACC/LAO/5) as regards process to obtain appr oval from the Prime Minister's Office for the 
importation of ordinarily-prohibite d goods under "exceptional cases".   WT/ACC/LAO/16 
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 Question 37 
We note (from paragraph 58 of the Factual Su mmary) that Lao PDR's non-automatic import 
licensing procedures are currently subject to re view.  We are interested in the procedures 
involved in the importation of agricultural pro ducts, and would appreciate information on the 
import licensing process involved, and ho w this might change after your review. 
Answer:   
See the progress on review of the import licensing pro cedures in the response to Questions 27 and 28.   
Question 38 
We are pleased to learn (in paragraph 59) that the indicative import plan mechanism has been 
abolished.  Does this mean that all goods not pr ohibited or subject to non-automatic import 
licensing could be imported under automatic licen ses without the need for other processes?  If 
not, please explain what processes remained to be followed. 
Answer:   
Lao PDR confirms that the indicative import plan h as been abolished as per the Ministry of Industry 
and Commerce's Order on Import and Export Facilitation No. 0453/MOIC.DIMEX dated 
26 March 2007.  
See also the response to Questions 27 and 28.  
- Customs valuation 
Question 39 We have continuing concerns about Lao PDR's reliance on price databases, as described in 
paragraph 64 of the Factual Summary.  We wo uld like to advise Lao PDR that the WCO has 
issued guidelines restricting such databases to use as a risk assessment tool.  The prices in the 
databases are not to be used to determine the customs value for imported goods, as a substitute 
value for imported goods, or as a mechanism to establish minimum values.   
Answer: 
 
The Decree on the Implementation of the Customs Law No. 362/PM dated 19 October 2007, Article 4 
(Customs value of imported goods) establishes as a basis for determining customs values in Lao PDR 
the same hierarchy of methodologies of customs va luation as provided for in the WTO Agreement on 
Implementation of Article VII of the GATT 1994. 
A copy of the Decree on the implementing of Custom s Law has been provided to the WTO Secretariat 
(document WT/ACC/LAO/16/Add.1 refers).  
It should be noted that Lao PDR has requested  for a transition period until the end of 2012 for 
achieving compliance with the CVA as provided for in the Action Plan on CV (document WT/ACC/LAO/12/Rev.1). WT/ACC/LAO/16 
Page 14 
 
 
 Question 40 
Question 53 of WT/ACC/LAO/11:  We thank Lao PDR for submitting the CVA Action Plan, 
and note the request of Lao PDR for a transiti on period until end 2011 for achieving full 
compliance with the CVA, and its requ est to receive TA in this area. 
Answer:  
Lao PDR looks forward to working with development partners to secure technical assistance to 
implement the Customs Valuation Action Plan. 
- Rules of origin 
Question 41 
Paragraph 66 of the Factual Summary, Quest ion 60 of WT/ACC/LAO/11:  Has the revised 
Implementation Decree incorporating provisions of the WTO Agreement on Rules of Origin 
already entered into force? 
Answer:  
The Decree on Implementation of the Customs La w No. 362/PM was adopted on 19 October 2007.  
Lao PDR is in the process of preparing a regulation to further elaborating the implementation of the 
provisions of Article 2(h) and Annex II paragra ph 3(d) of the Rules of Origin Agreement. 
B. EXPORT REGULATIONS 
- Export restrictions Question 42 Export duties:  Paragraph 70 of the Factual Su mmary:  What is the rationale for imposing 
export duties on the products listed in Table 10? 
Answer:
  
Lao PDR, as a least-developed country, has a relatively narrow tax base and export duties are 
collected for revenue purposes.   
Question 43 
Does Lao PDR have plans to phase ou t export duties in the future? 
Answer:   
Lao PDR has no plans at present to phase out these duties.  
Question 44 
We note Lao PDR's explanation (in paragraph 73) that mining and forestry products were 
subject to export restrictions in order to conserve natural resources.  We would welcome 
further information on how conservation objectiv es are considered in determining the grant of 
export licenses, and how these objectives are balanced against the objective (noted in 
paragraph 78) of promoting foreign investment in mining.  WT/ACC/LAO/16 
 Page 15 
 
 
 Answer:   
The Sixth National Socio-economic Development Plan  of Lao PDR provides for the attainment of 
balanced development with respect to economic, social and environmental aspects.  Hence, the 
Government of Lao PDR has tried to promote sustained economic growth including through 
promoting domestic and foreign investment that w ould benefit the people while ensuring social and 
environmental sustainability.  The mining industry is  one of the priority sectors being promoted and 
developed in line with this development plan. 
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies 
Question 45 
We appreciate Lao PDR's efforts to comply with its obligations under Article 25 of the 
SCM Agreement to notify all subsidy programmes,  including subsidies contingent upon the use 
of domestic over imported goods (WT/ACC/LAO/11, Question 63). 
We urge Lao PDR to make a commitment that upo n accession it will eliminate all local content 
requirements in its incentive programmes.  
Answer:   
Lao PDR is endeavouring to comply with its future obligations under Article 25 of the 
SCM Agreement and, as a landlocked LDC, seeks to  avail itself to the rights and flexibilities as 
provided to LDCs in the SCM Agreement.  Lao PDR will make the effort to comply with the 
transparency obligations laid out in such agreement upon accession. 
See also the response to Question 1 with  respect to local content requirement. 
Question 46 
We appreciate the additional information provided by Lao PDR as to the 20 per cent threshold 
in its local content subsidy programme in the Boten and Dansavanh Village Border Trade 
Zones (WT/ACC/LAO/11, Question 101). 
We urge Lao PDR to make a commitment that upo n accession it will eliminate all local content 
requirements in its incentive programmes, including programmes in its free trade zones.  
Answer:  
See the response to Questions 1 and 45. 
Question 47 
Paragraph 79 of the Factual Summary:  We note  that Annex II of the Implementing Decree to 
the Investment Laws sets local contents requirements (50 per cent) as criteria for receiving 
investment incentives. 
We would ask Lao PDR to identify all local cont ent subsidies and provide and action plan for 
their gradual elimination.  Lao PDR should also p repare a notification on all its subsidies to the 
WTO Subsidies Committee. WT/ACC/LAO/16 
Page 16 
 
 
 Answer:   
Annex II of the Implementing Decree of the La w on the Promotion and Protection of Foreign 
Investment identifies the local content requirement  as one possible criteria among six, only three of 
which are to be fulfilled. 
See also the response to Questions 1, 45 and 78.  
Question 48 
We would welcome further information regarding  the ongoing revision of the Mining Law, 
designed (as explained in paragraph 78) to " create a more enabling environment for investment 
in this area".  Could you explain what amendments are proposed? 
Answer:   
The proposed amendments include: - Streamlining licensing procedures to facilitate  investment in the mining industry; and 
- A clearer division of rights and duties between the central and local mining authorities in 
regulating and promoting mining activities in Lao PDR. 
The proposed revision of the Mining Law has been  prepared in consultations with relevant 
stakeholders including line ministries and related businesses in Lao PDR.  The draft Law is presently 
with the Ministry of Justice for review, and if approved, will be submitted to the Prime Minister's 
Office and thereafter to the National Assembly for adoption.  
- Technical barriers to trade, standards and certification 
Question 49 
We appreciate Lao PDR's efforts to provide a description of its system of standards, technical 
regulations and conformity assessment in JOB( 07)/160.  However, we still have a number of 
questions. 
We note that in WT/ACC/LAO/11 (Question 66, page 24) Lao PDR indi cated that it would 
make available the draft of the Standards Law.  A review of this law and the implementing 
regulations and decrees, as drafts become ava ilable, will provide Working Party Members with 
a better understanding of how the obligations of the TBT Agreement are being incorporated into Lao PDR's system.   
Answer: 
 
The draft Law on Standards was endorsed by the Na tional Assembly on 26 November 2007, and is in 
the final process of promulgation by the President of the National Assembly and the President of 
Lao PDR.   
The Decree and regulations implementing the Law on Standards are in the process of preparation.  
See also the Action Plan on TBT Agreement (document WT/ACC/LAO/14/Rev.1).   WT/ACC/LAO/16 
 Page 17 
 
 
 Question 50 
Based on the information in paragraph 82, we understand that in addition to the Standards 
Law Lao PDR is also finalizing a Regu lation on Information Procedures. 
- What is the status of that regulation?  Is a draft available for Working Party Member 
review? 
- How will the Regulation on Information Procedures relate to the Standards Law, 
particularly since Lao PDR has indicated that the Standards Law will incorporate the elements in the TBT Checklist, including transparency?  
Answer: 
 
The Law on Standards, Article 91, provides for the overall duties of the National Science and 
Technology Authority (NSTA), previously know n as the Science Technology and Environment 
Agency (STEA).  After the promulgation of the Law on Standards, the NSTA will formulate the Regulation on Information Procedures.  See the Action Plan on TBT Agreement (document WT/ACC/LAO/14/Rev.1) which outlines the plan on legislative progress.  Article 34 of the Law on 
Standards further elaborates the duties of the Nati onal Standards Council to formulate the standards in 
a transparent manner.  
Question 51 
With regard to your response to Question 68 on "domestic regulations" (WT/ACC/LAO/11, 
page 25): 
- How will Lao PDR ensure that the domestic regulations that do not have to await the 
passage of the Standards Law conform with  the obligations under the TBT Agreement? 
Answer:
  
The Law on Standards is built on the key provisions of the TBT Agreement in the existing Decree of 
the Prime Minister regarding the Management of the Standard and Quality of Goods and Products 
No. 85/PM of 1995 in addition to other requirements of the TBT Agreement. 
Please note that Lao PDR has requested for a tran sition period until 2012 as indicated in the Action 
Plan on TBT (document WT/ACC/LAO/14/Rev.1). 
Question 52 
We note that the transition period Lao PDR has requested has been adjusted from 2010 to 2012. - Could the representative from Lao PDR expl ain why an additional two years has been 
added to the request? 
- Furthermore, on what basis did Lao PDR determine that an additional two years would 
be required? 
- Has an assessment of Lao PDR's needs been completed?  If so, could Lao PDR share 
those findings with Working Party Members? 
Answer: 
 
Please note that the 2010 timeline referred to the da te for the passage of the Law on Standards and 
implementing regulations.  The year 2012 referre d to the date for compliance with the TBT WT/ACC/LAO/16 
Page 18 
 
 
 Agreement which requires the development of nationa l infrastructure, including technical assistance 
to identify and support the plan of actions such as formulation of implemen ting regulations, raising 
public awareness, capacity building, providing testing facilities etc.  
As stated in the Action Plan on the TBT Agre ement (document WT/ACC/LAO/14/Rev.1), technical 
assistance is required to identify the exact needs.  
Question 53 
We thank Lao PDR for submitting the Action Plan on TBT.  We take note of the transition 
period until 2012 indicated for full compliance. 
Answer:  
Lao PDR looks forward to working with development partners to secure technical assistance to 
implement the TBT Action Plan (document WT/ACC/LAO/14/Rev.1). 
Question 54 
We note (from paragraph 82) that "testing fac ilities for construction materials, textiles and 
chemicals would be in place by 2011", but also  (from paragraph 85) that Lao PDR "recognised 
the rules of conformity assessment conducted by  the relevant bodies in exporting countries".  
Can you confirm that Lao PDR recognised all conformity assessment conducted in exporting 
countries, including for construction materials, textiles and chemicals? 
Answer:    
Lao PDR recognises the rules of conformity assessme nt conducted by the relevant bodies in exporting 
countries in particular based on national standards including for construction materials, textiles and 
chemicals.  
Question 55 
We welcome your statement (in paragraph 84) that  a single enquiry point for TBT issues would 
be established within the National Organizat ion for Science and Technology (NOST).  We 
would be interested to know when this  enquiry point will begin operating. 
Answer:   
As indicated in the Action Plan on the TBT Agreement (document WT/ACC/LAO/14/Rev.1), the 
TBT enquiry point will be operative upon Lao PDR's accession to the WTO.  
- Sanitary and phytosanitary measures 
Question 56 With reference to WT/ACC/LAO/11 (Questions 80-85) and WT/ACC/LAO/6, we respectfully 
reaffirm our request for the Lao PDR to communica te how it plans to incorporate the following 
principles of the WTO SPS Agreement into its domestic regulations: 
- Necessity:  measures are applied only to the extent necessary to protect human, animal 
or plant health;  WT/ACC/LAO/16 
 Page 19 
 
 
 - Regulations based on science:  animal, plan t health and food safety measures shall be 
based on scientific evidence; 
- Equivalence:  Members shall recognize different measures that achieve the same level; - Risk Assessment:  develop scientific evid ence and conduct risk a ssessments to ensure 
that measures are based on science and applie d only to the degree needed to protect 
health; 
- Non-discrimination:  measures do not arbitrarily or unjustifiably discriminate between 
different Members or between dom estic and foreign suppliers; and 
- Control, inspection and approval procedur es:  ensure that procedures, including 
systems for approval of the use of additives or for establishing tolerances for 
contaminants in foods, beverages or feedstuffs comply with the Agreement. 
Answer: 
 
Lao PDR wishes to update Members on the current st atus of its legislative developments on SPS as 
follows: 
With respect to animal health, the draft Law on Vete rinary is in the stage of drafting and should be 
submitted to the National Assembly in 2009 for fi nal comments and approval.  The draft Law has 
been prepared and commented with internati onal experts under the EC and World Bank-funded 
projects.  This incorporates the key principles of the WTO SPS Agreement.  
With respect to plant health, the elaboration of a t echnical assistance project is being finalized and the 
project is expected to begin by mid 2008 under th e Integrated Framework.  The key components of 
the project are the strengthening of SPS cap acity which will focus on (i) strengthening SPS 
institutional, legal and regulator y framework; (ii) determining risk-based policies and control 
measures for SPS; and (iii) strengthening the role of  the private sector in a SPS regime.  Lao PDR will 
ensure that the above mentioned principles under the WTO SPS Agreement will be reflected in the 
regulatory framework on plant health be ing developed under this project.   
With respect to food safety, the draft regulations to implement the Food Law (2004) are being drafted 
and the aforementioned principles will be reflected therein.  See also the progress on implementing the Food Law (2004) in the SPS Action Plan (WT/ACC/LAO/13/Rev.1).   
Question 57 
We note that in WT/ACC/LAO/13 (SPS Action Plan), there is no provision for Issue No. 3 Plant 
Health for drafting corresponding meas ures in accordance with the SPS Agreement. 
How does the Lao PDR intend to develop pl ant health measures compliant with the 
SPS Agreement?   
Answer:
 
See the response to Question 56 on plant health. 
Question 58 
With respect to the information provided in response to Question 81 of WT/ACC/LAO/11, 
concerning Lao PDR's incorporation of science-based regulations: 
- Please provide a copy of Resolution No. 09/PMO, dated 27 November 2003. WT/ACC/LAO/16 
Page 20 
 
 
 Answer:  
A copy of the Science and Technology Policy of Lao PDR as endorsed by the Government in the 
Resolution No. 09/PMO, dated 27 November 2003 has been provided to the WTO Secretariat (document WT/ACC/LAO/16/Add.1 refers).  
Question 59 We note in WT/ACC/LAO/6 that a reasonable comment period procedure for Members will be 
established after accession. 
- We respectfully request that Lao PDR en force such a procedure upon accession rather 
than after; and 
- Please provide examples of laws or regulations  that affect the rights and interests of the 
general public and where comments were solicited from the public and the corresponding timeframes allotted. 
Answer: 
 
All laws in Lao PDR that have b een adopted since the passage of Presidential Ordinance on Legal Act 
Drafting No. 02/OPR of 20 October 2003 have fo llowed the procedures that require public 
consultations, particularly in laws that relate to  many parties and the vital interests of the people 
(Article 37 of the Presidential Ordinanc e on Legal Act Drafting No. 02/OPR).   
A copy of the Ordinance has been prov ided to the WTO Secretariat (document 
WT/ACC/LAO/16/Add.1 refers).   
Question 60 
In response to Question 87 of WT/ACC/LAO/11, which sought clarification on the extent to 
which Lao PDR follows international standards when formulating SPS regulations, Lao PDR noted that "in practice" it follows the standa rds of ASEAN, and where no ASEAN standards 
exist, it follows OIE/IPPC/Codex.  However, th is appears to reverse the presumption set out in 
Article 3 of the SPS Agreement, which calls fo r SPS measures to be based on "international 
standards".  Annex A to the SPS Agreement makes clear that "international standards" refers 
to IPPC, OIE, Codex or any other International Or ganization that is open for membership to all 
WTO Members. 
In cases where ASEAN standards and guidelines di ffer with international standards, will 
Lao PDR equally recognize and accept internatio nal standards like Codex, OIE and IPPC as 
part of its efforts to harmonize its domestic  SPS and TBT Laws with international standards? 
Answer: 
 
The response to Question 87 of WT/ACC/LAO/11 does not appropriately characterize the relationship 
between ASEAN and international standards.  Para graph 86 of the Factual Summary (JOB(07)/160), 
page 29, correctly outlines the current situati on.  The SPS standards in Lao PDR are based on 
international standards and guidelines under the OIE, IPPC and the Codex Alimentarius.   
Question 61 In reply to Question 92 of WT/ACC/LAO/11, Lao PDR explains that technical assistance is 
required to enhance institutional ca pacity and laboratory build-up.  WT/ACC/LAO/16 
 Page 21 
 
 
 Please specify and explain the technical assistance  that Lao PDR needs to enhance institutional 
capacity and laboratory build-up. 
Answer:  
The Ministry of Agriculture and Forestry in co llaboration with the Ministry of Health and the 
National Science and Technology Authority is fina lizing a project under a multi-donor trust fund, the 
Trade Development Facility (TDF), with the World Bank and development partners under the 
Integrated Framework.  The key components of the project on strengthening SPS capacity will focus  
on (i) strengthening SPS institutional, legal and re gulatory framework; (ii) determining risk-based 
policies and control measures for SPS; and (iii) strengt hening the role of the private sector in a SPS 
regime.  Lao PDR looks forward to working with Me mbers on laboratory build up to ensure that it is 
able to meet the requirements of SPS Agreement as indicated in the Action Plan on SPS Implementation WT/ACC/LAO/13/Rev.1. 
Question 62 
We appreciate Lao PDR's reply to Question 96 concerning Lao PDR's legal and institutional 
framework affecting SPS.  We have some follow-up questions on Lao PDR's reply. 
What are the requirements for: 
- Issuing permits for imported food; and 
- Registration of food premises and products 
Please provide copies of these requirements. - How does the Food and Drug Department  (FDD) plan to provide food safety 
information to the public? 
- How does the Food and Drug Quality Cont rol Center (FDQCC) plan to monitor food 
contaminants? 
- Please provide a copy of the SPS and TBT legislation that has been provided to the 
WTO Secretariat. 
Answer: 
 
The Food Law of 2004 provides for the principles to be taken into account with respect to food 
importation and food business activities (Articles 17 to  24) to assure food safety, hygiene and quality. 
The Ministry of Health is currently drafting re gulations to elaborate detailed requirements on 
implementing the Food Law.   
Examples of the requirements for issuing import food that could be incorporated in the draft 
regulations would include food safety and quality certification such as Good Manufacturing Practices 
(GMP), or Hazard Analysis and Critical Control Points (HACCP).   
Examples of the requirements for registration of food premises and products that could be 
incorporated in the draft regulations include  food processing in line with Good Manufacturing 
Practices, label of product, employee health certification, establishment authorization or business 
authorization, layout of premises, and flow chart of food factory.  WT/ACC/LAO/16 
Page 22 
 
 
 The information on food safety is regularly ch annelled to the public through mass media e.g. 
television, radio, and printed materials;  commun ity gathering; mass Organizations, e.g. Lao Youth 
Union, Lao Women Union, and Lao Trade Fede ration; and training for food producers.  
Food monitoring is provided for in Part VI (F ood management and inspection) of the Food Law 
of 2004.  It includes analysis of food samples by  the Food and Drug Quality Control Center (FDQCC) 
which also together with the Food and Drug Depa rtment (FDD) monitors food contaminants under 
projects, including aid-funded programmes at the Ministry of Health. 
Question 63 
With respect to Lao PDR's SPS Action Plan (WT/ACC/LAO/13, 20 July 2007): 
- Please specify and explain the type of training that Lao PDR requires to be able to draft 
and finalize regulations on Food Safety and on  the Implementation of the Food Law, in 
accordance with the SPS Agreement.  
Answer:  
The training includes workshops and field visits  on the SPS Agreement and its implications on 
national practices on food safety.  
In addition, the Ministry of Health also needs expe rts/consultants in the area of food safety to assist in 
formulating implementing regula tions of Food Law to ensure compliance with the WTO SPS 
Agreement and international practices.  
See also the response to Question 61 with respect  to recent updates on technical assistance on SPS 
capacity building.  
Question 64 With respect to paragraph 89 of the Factual Summary: - Please explain how its Ministry of  Commerce and its SPS/TBT Enquiry Point 
coordinate regarding the submission of Lao PDR's SPS notifications to the WTO? 
Answer: 
 
As provided for in the revised Legislative Acti on Plan WT/ACC/LAO/9/Rev.2, the SPS/TBT Enquiry 
Point will be established in the National Scien ce and Technology Authority (NSTA) whereas the 
SPS/TBT Notification Point under the Ministry of Industry and Commerce, both of which will be operative upon Lao PDR's accession to the WTO.   
As the SPS/TBT Enquiry Point, the NSTA will be the channel for forwarding all enquiries from WTO 
Members to the line ministries as well as res ponding to the enquiries from WTO Members. 
As the SPS/TBT Notification Point, the MOIC will be responsible for preparing notifications and 
forwarding laws and regulations on SPS/TBT as required to the WTO Secretariat.  
Line ministries responsible for SPS/TBT will provid e necessary laws and regulations and information 
to the National Science and Technology Authority and the Ministry of Industry and Commerce to fulfil their tasks.    WT/ACC/LAO/16 
 Page 23 
 
 
 Question 65 
SPS questions on the Legislative Action Plan (WT/ACC/LAO/9/Rev.1 of 20 July 2007). Section I:  We note that Section I under the In troduction states that Food Law (2004) is one of 
several laws that is either new or amended and has recently been approved by the Lao PDR 
National Assembly: 
- Please confirm if this Law is new or amended; 
- Please explain how this Law harmonizes with  international standards like Codex, OIE 
and IPPC as appropriate.  What steps has Lao PDR taken to harmonize this Law with 
international standards; and 
- Further, please provide a copy of the new or amended Food Law (2004). 
Answer: 
 
The Food Law No. 04/NA dated 15 May 2004 is a ne wly developed law that was adopted by the 
National Assembly in 2004.  
The Food Law, Section 2, Article 13 provides the basis for the adoption of new food standards in 
Lao PDR to be based on the standa rds of the Codex Alimentarius.  
With regard to standard harmonization with th e OIE and IPPC, see the response to Questions 56 
and 60.  
The following are national food standards that have  been adopted based on the Codex Alimentarius 
standards: 
- Regulation on drinking water in sealed containers; and 
- Regulation on production, import and export of safe food.  
The following are national food standards that are in the processing of being adopted and which are 
based on the Codex Alimentarius standards: 
- Regulation on food labelling; 
- Regulation on Good Manufacturing Practices  (GMP) and Hazard Analysis and Critical 
Control Points (HACCP); and 
- Regulation on food additive substances. 
The Codex Alimentarius standards are applicable in the following where national food standards have 
not yet been adopted to date: 
- Standards on food substances such as: sweet, co lorant, preservatives, food additives, etc.; and 
- Standards on food residues and contamination e. g. chemical substance, bacteria, fertilizer 
residue, polluted emission etc. 
Question 66 
Section II:  No. 5, Law on Standards - SPS and No. 6, Law on Metrology - SPS: - Please identify the type of assistance that you require to further work on the Draft Law; 
- Please specify the type of assistance that  you need for publication, dissemination, 
training and establishing testing facilities; WT/ACC/LAO/16 
Page 24 
 
 
 - Please explain how this Basic Draft La w on SPS harmonizes with international 
standards; 
- Please provide the scheduled dates (if kno wn) for adopting this Law in 2007 and for 
National Assembly approval in 2009; and 
- Please explain the transition period that you require to comply with the provisions of the 
TBT and SPS Agreements. 
Answer:  
Lao PDR is in the process in elaborating its de tailed technical assistance requirements under the 
Integrated Framework, including a multi-donor trus t fund, known as Trade Development Facility, to 
support the country's efforts to bring its SPS regi me into compliance with WTO SPS Agreement.  
Further details and recent devel opments can be found in the webs ite:  www.integratedframework.org. 
With respect to harmonization with international standards, see the response to Questions 56 and 60. 
Expected dates to approve laws are contai ned in the revised Legislative Action Plan 
(WT/ACC/LAO/9/Rev.2). 
Lao PDR looks forward to working with development partners to secure technical assistance to 
implement the SPS and TBT Action Plans (documents WT/ACC/LAO/13/Rev.1 and 
WT/ACC/LAO14/Rev.1). 
Question 67 
Section II:  No. 8, Law on Plant Protection and Plant Quarantine - SPS: 
- Please specify the technical and financial assistance required to draft this Law; 
- Please specify the additional technical and financial assistance Lao PDR needs on 
capacity building, human resources and infrastructure development per the Action Matrix of the Integrated Framew ork in Lao PDR recommendations; 
- Please explain how this Law harmoni zes with international standards; and 
- Please identify the transition period that you  need to comply with the provisions of the 
SPS Agreement. 
Answer: 
 
See the response to Questions 56, 60 and 66.  The transition period for compliance with the SPS Ag reement is indicated in the Action Plan on SPS.  
Lao PDR looks forward to working with developm ent partners to secure technical assistance to 
implement the SPS Action Plan (document WT/ACC/LAO/13/Rev.1). 
Question 68 Section II:  No. 9, Regulations to Implementing the Food Law: - Please specify the type of assistance and traini ng that you need to draft this Regulation. 
Answer: 
 
See the response to Question 63.   WT/ACC/LAO/16 
 Page 25 
 
 
 Question 69 
Section II:  No. 10, Regulation on the Establishment of the SPS/TBT Notification Point - SPS 
and TBT: 
- Please explain the planned staffing for the SPS and TBT Enquiry Points. 
Answer:  
As outlined in the revised Legislative Action Plan (WT/ACC/LAO/9/Rev.2), the regulatory and 
institutional framework is under preparation.  Assi stance is being received from the US and Singapore 
to train staff.  
Question 70 
Section II:  No. 14, Regulation to Establish a GATS Enquiry Point: 
- Please explain what a GATS Enquiry Point is; and 
- What is the difference between the SPS/TBT and GATS Enquiry Point? 
Answer:  
The GATS Enquiry Point, as provided for in Artic le III of the WTO GATS Agreement, is to be 
established in the Foreign Trade Policy Department of the Ministry of Industry and Commerce.  
The SPS/TBT Enquiry Point, as provided for in Article 7 and Annex B.3 of the WTO SPS Agreement 
and Article 10 of the WTO TBT Agreement, is to be established in the Department of Intellectual 
Property, Standardization and Metrology of th e National Science and Technology Authority. 
Question 71 
We thank Lao PDR for submitting the Action Plan on SPS.  We take note of the transition 
period until 2012 indicated for full compliance. 
Answer:  
Lao PDR looks forward to working to secure tec hnical assistance from Members to support its efforts 
to comply with the WTO SPS Agreement as per indicated in the Action Plan on SPS (document 
WT/ACC/LAO/13/Rev.1).  
Question 72 We welcome your statement (paragraph 89) that a single enquiry point for SPS issues would be 
established within NOST.  We would be interested  to know when this enquiry point will begin 
operating. 
Answer:
  
The SPS/TBT Enquiry Point will be operative upon Lao PDR's accession to the WTO under the 
National Science and Technology Authority (formerl y NOST).  Paragraph 89 of the Factual Summary 
can be updated in this regard.  WT/ACC/LAO/16 
Page 26 
 
 
 Question 73 
We welcome the information (in paragraph 90)  that, for food quality compliance purposes, 
certificates issued in the exporting country wo uld be accepted and recognised.  We have the 
following questions regarding this policy: 
- Is the provision of this certificate a preco ndition to obtaining an import licence for a 
product, or can the certificate be proffered upon actual importation of the product? 
- Does the provision of a quality compliance certificate obviate the need for any further 
licensing or compliance testing? 
- Is this policy enshrined in a legislative instrument, and, if so, which one? 
- We note that a quality certificate is needed for each shipment.  Why is this requirement 
necessary to ensure food safety , in cases when an importer is importing products from a 
country and supplier previously foun d to satisfy safety requirements? 
- We would welcome more detailed information on the process of obtaining a licence for 
the importation of agricultural products. 
Answer:   
Yes, obtaining this certificate is a precondition for obtaining an import licence prior to the actual 
importation of the product.  
The provision of quality compliance certificate will facilitate obtaining the licence to import.  It will 
obviate the need for compliance testing. 
The above mentioned policy is enshrined in the Fo od Law of 2004 and the Regulation on the Control 
on Production and Export-Import of Safe  Food No. 586/MOH dated 12 May 2006.  
The certification of food quality is required for every shipment.  The Food and Drug Department has 
the constant challenge of ensuring that food in the market is safe, hygienic and of quality as provided 
for in the Food Law (2004).  Lao PDR continues to experience incidences of imported food and 
drinks that have expired shelf life.  
See the progress on review of the import licensing procedures including for agricultural products in 
the response to Questions 27 and 28.   
- Trade-related investment measures 
Question 74 We are very concerned by investment-discour aging measures such as the requirement that 
foreign invested companies use 90 per cent local workforce.  While we understand the 
motivations of the Lao PDR Government, such  measures ultimately make Lao PDR a less 
attractive place for foreign investment, and w ill be counter-productive for local employment. 
Answer: 
 
Paragraph 24 of the Factual Summary, as it currently reads, could be incorrectly understood as linking 
the requirements on hiring local workforce, traini ng, and technology transfer to TRIMs Agreement 
disciplines.  Thus, Lao PDR requests this to be a ppropriately reflected in the Factual Summary.   
As a least developed country, La o PDR does not believe that employment rights for foreigners are 
appropriately negotiated under TRIMs.    WT/ACC/LAO/16 
 Page 27 
 
 
 In addition, Lao PDR reiterates that Article 27 of  the SCM Agreement provides flexibilities for LDCs 
to use export performance requirements.  Thus, this is also to be appropriately reflected in the Factual 
Summary. 
Question 75 
Regarding measures incompatible with the TR IMs agreement, we take note of Lao PDR's 
response to Question 98 of WT/ACC/LAO/11 that "Lao PDR would like to avail itself of the transition period for phasing out the TRIMs in compatible measures by 2020 as allowed for in 
the Hong Kong, China Ministerial Declaration." 
For purpose of clarity, please confirm that Lao PDR shares our understanding that such phase-
out period for existing measures will last for seven  years from the date of accession, and that it 
will have effect for those existing measures notified to the Council for Trade in Goods. 
Answer: 
 
As regards the transition period, the understanding  of Lao PDR is that LDCs can avail of the 
transition period as provided for in the Hong Kong  Ministerial Declaration (paragraphs 35-36 and 
Annex F).   
See also the response to Question 1.  
- State-trading entities 
Question 76 JOB(07)/160, paragraphs 93-94:  We note the 16 State-owned enterprises that Lao PDR says are 
"currently involved in importation or exportation of goods". 
It would be helpful to have these enterprises set  out in a table to be annexed to the Factual 
Summary, indicating the sectors in which th ey operate and what the nature of their 
"involvement" with importation/exportation is.  Any description provided would allow the 
Working Party to better evaluate those enterprises against the obligations in 
GATT Article XVII. 
Answer: 
 
List of State-owned Enterprises involved in impor tation or exportation of goods is as follows:  
 Name of SOEs Responsible 
Agency Sectors Registered Activities Exclusive 
or Special 
Privileges 
Granted? 
(yes/no) 
1 Lao Trade Import-
Export Company  Ministry of 
Industry and 
Commerce Construction 
and technical 
equipments Import of construction 
materials, electrical equipment 
and export of wood and handicraft products. no 
2 Lao International 
Import-Export Ministry of 
Industry and 
Commerce Construction 
and technical 
equipments Import of construction 
materials, electrical equipment 
and export of wood and handicraft products. no WT/ACC/LAO/16 
Page 28 
 
 
  Name of SOEs Responsible 
Agency Sectors Registered Activities Exclusive 
or Special 
Privileges 
Granted? 
(yes/no) 
3 Technical Equipment 
Supply Enterprise Ministry of 
Industry and 
Commerce Construction 
and technical 
equipments Import of technical equipments 
including telecommunication 
equipments. no 
4 Lanexang 
Development Co. Ltd Ministry of 
Industry and 
Commerce Construction 
and technical 
equipments Import of construction 
materials, spare parts, electrical 
equipments; export of wood 
and handicraft products. no 
5 Construction 
Materials, Surveys & 
Analyses Co. Ministry of 
Industry and 
Commerce Construction 
and technical 
equipments Import of construction materials 
and technical equipments. no 
6 Lao International 
Trade Service 
Company Ministry of 
Industry and 
Commerce Construction 
and technical 
equipments Import of technical equipment 
including various consumption 
goods; export of handicraft 
products. no 
7 Lao State Fuel 
Company Ministry of 
Industry and 
Commerce Energy Import of gasoline, diesel, 
lubricants and gas. no 
8 Barite Exploration 
Co. Ministry of 
Energy and Mining Mining Operation ceased. no 
9 Lao Cotton State 
Enterprise Lao Women's 
Union Textile Export of Clothing and other 
cotton-made products. no 
10 Pharmaceutical 
Factory No. 2 Ministry of 
Public Health Public health Import of chemical products 
and export of medicines. no 
11 Pharmaceutical 
Factory No. 3 Ministry of 
Public Health Public health Import of chemical products 
and export of medicines. no 
12 State Printing 
Enterprise  Ministry of 
Information 
and Culture General 
printing  Printing equipment. no 
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. no 
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. no 
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. no 
16 Bolisat Phattana Khet 
Phoudoi 
(Mountainous Area Development 
Company) Prime 
Minister's 
Office Agricultural, 
forest and 
rural development Import of agricultural 
machinery and materials; export 
of agricultural, forest and wood products. no 
 
Please note the SOEs listed in the above table are not  granted any exclusive or special privileges to 
import and export within the mean ing of the GATT Article XVII. 
Note also that the oversight of Bolisat Phattana  Khet Phoudoi is now responsible by the Prime 
Minister's Office.  Please reflect this ch ange in the Factual Summary accordingly.  WT/ACC/LAO/16 
 Page 29 
 
 
 Question 77 
We note that in this section, Lao PDR makes reference only to the State-owned enterprises 
"currently involved in importation or exportation of goods". 
We remind Lao PDR that the disciplines of the GATT Article XVII apply to all State-owned 
and controlled enterprises, regardless of involve ment with importation/exportation (e.g., those 
mentioned in response to Question 157 of WT/ACC/LAO/11), and that Lao PDR will be expected to undertake a commitment in this section accordingly.  
Answer: 
 
See the response to Question 76.  - Free zones, special economic areas Question 78 Paragraph 96 of the Factual Summary:  We note that goods produced in the SEZs and FEZs, 
are not subject to normal import duties when th ey enter the domestic market of Lao PDR, but 
reduced duties based on the percentage of the local contents used. 
We would urge Lao PDR to remove this differen tiated treatment of imported goods and goods 
produced in FEZs, and to apply normal impo rt duties without any reductions also to goods 
produced in FEZs. 
Answer: 
 
The FEZs and SEZs in Lao PDR are in their early stages of development and SEZs and FEZs have 
been identified as priority policy areas for the further development of the country.  
As provided for in the response to Questions 1 and 75, the Government of Lao PDR wishes to avail 
itself of the transition period for the use of TRIMs.  
- Agricultural policies 
Question 79 We welcome information provided by Lao PDR on  agricultural support measures.  We would 
prefer these measures be scheduled in local curr ency units, to provide a more accurate measure 
of actual support paid to farmers. 
Answer:
  
The check-list on agricultural support will  be amended accordingly (see document 
WT/ACC/SPEC/LAO/1/Rev.1).  
Question 80 
We would appreciate more information on the operation of the State-owned enterprise 
(described in paragraph 106) established to purchase farm products at market prices for resale 
in the domestic market.  Coul d the market stabilisation purpose of this enterprise equally be 
served by relaxing import constr aints on agricultural products? WT/ACC/LAO/16 
Page 30 
 
 
 Answer:   
State-owned enterprise purchases farm products at market prices and sells them back into the 
domestic market at a later time in order to stab ilise supplies and prices.  The relaxation of import 
restrictions would be one possible policy instrument at times of shortage, but would be inefficient at 
times of excess production. The Government provided initial investment as provided in 
WT/ACC/SPEC/LAO/1 of 19 July 2006.  Since then  the company has operated at a profit requiring 
no further Government funding.  
Question 81 
Factual Summary (page 35, paragraph 105):  The report states that, "Lao PDR reported 
outlays on development programme s (Article 6.2) for input subsidies (investment and operating 
credits provided by the Agriculture Promotion Bank,  and electricity at reduced rates to poor 
farmers), and a market price support programme for rice". 
- Please explain how Lao PDR defines poor farmers? 
- Please explain how the market price support  programme differs from the price control 
plan mentioned on page 12, paragraph 29 of the factual summary, for rice? 
- Please also describe how Lao PDR decides and calculates the minimum farm gate price 
and the external reference price for rice? 
Answer:  
Poor farmers refer to the farmers who are resour ce poor and who are living under poverty.  The Prime 
Minister's instruction on poverty eradication No. 10/PM of 25 June 2001 provides the definition that:  
"Poverty is the lack of ability to fulfil basic hum an needs such as not having enough food, lacking 
adequate clothing, not having permanent housi ng and lacking access to health, education and 
transportation services". 
The minimum price referred to in Table 6, page 12 of the factual summary,  is the market price 
support for rice.   
With reference to the minimum farm gate price for rice, see the response to Question 7.  The external 
reference price for rice is provided in th e response to Question 112 of the document 
WT/ACC/LAO/11. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME 
- GENERAL 
- Application of national and MF N treatment to foreign nationals 
Question 82 Berne Article 3, incorporated by TRIPS Article 9, requires that Member countries grant 
protection to authors who are nationals of Memb er countries, to authors who are not nationals 
of Member countries for works first or simult aneously published in a Member country and 
residents of Member countries, even if not nationals of that country.  Protection must be granted to both published and non-published works. 
Paragraph 115 of the Factual Summary notes th at Lao PDR does not accord this national 
treatment obligation.  How and when does th e Lao PDR Government plan to correct this?  WT/ACC/LAO/16 
 Page 31 
 
 
 Answer:  
The Law on Intellectual Property was endorsed by th e National Assembly in November 2007 and is in 
the process of promulgation by the President of the National Assembly and the President of Lao PDR.   
The Law on Intellectual Property is in conformity w ith the Berne Convention Article 3 as well as the 
TRIPS Agreement Article 9 to protect the authors of both nationals and non-nationals of member 
countries.  Lao PDR's intellectual property legisl ation does not provide any additional favourable 
treatment to Lao PDR nationals vis-à-vis  foreigners.  See Article 6 a nd 7 of the Law on Intellectual 
Property on the Most-Favoured-Nation and the National Treatment provisions, respectively.  
Paragraph 115 of the Factual Summary needs to be appropriately amended. 
- SUBSTANTIVE STANDARDS OF PROTECTION, INCLUDING PROCEDURES 
FOR THE ACQUISITION AN D MAINTENANCE OF INTELLECTUAL PROPERTY 
RIGHTS 
- Copyright and related rights Question 83 Paragraph 117 on page 41 of the Factual Summary notes that Lao PDR has no copyright and 
related rights legislation.  The answers to Questions 119 and 120 of WT/ACC/LAO/11, page 42, 
note that many of the required obligations will be incorporated in separate Decrees and 
Regulations. 
When will the Law on Intellectual Property and the necessary Decrees and Regulations be 
enacted? 
Answer: 
 
The Law on Intellectual Property, which contains the provisions on Copyrights and Related Rights, 
was endorsed by the National Assembly in November  2007 and is in the process of promulgation.   
At present, the implementing regulations as well as the existing regulations are being formulated and 
amended according to the new Law with the assi stance of the EC under the ASEAN-EU Cooperation 
Project on Intellectual Property (ECAP III Project).  See also the TRIPS Action Plan (document 
WT/ACC/LAO/15/Rev.1). 
Question 84 
Paragraph 119 on page 41 of the Factual Summary and part (vi) of the answer to Question 121 
of WT/ACC/LAO/11, page 43 indicates that registr ation and term of protection for audiovisual 
works and sound recordings will be addressed in specific Decrees and Regulations.  However, 
Article 19 of the Draft Law on Intellectual Pr operty appears to cover unpublished phonograms 
as well as audiovisual works. 
- Please confirm that Article 19 covers audiovi sual works and explain where the term for 
published phonograms is addressed. 
- The draft Law requires registration of a copy right for protection which is contrary to 
the Berne Convention.  Your representati ve previously noted that Decrees and 
Regulations will be issued to address questions  including registration procedures.  It is 
unclear whether Lao PDR intends to remedy this issue through the decrees and WT/ACC/LAO/16 
Page 32 
 
 
 regulations, but as those instruments cannot go beyond the Law, does Lao PDR intend 
to revise the draft Law to remedy the issue? 
Answer:  
Members' comments were taken into  account in finalizing the draft Law on Intellectual Property.  The 
Law on Intellectual Property covers audiovisual works as stipulated in Article 74 as well as in 
Article 90 of the Law concerning the rights of producers of audiovisual works, and in Article 94 concerning the terms of protection for published pho nograms within fifty years from the date of first 
publication. 
The Law on Intellectual Property does not require the registration of a copyright for protection, and 
the copyright works will be protected automatically upon their creation as stipulated in Article 79 of 
the Law on Intellectual Property concerning the claim of copyrights and related rights. 
Question 85 
Article 6 of the Draft Law on Intellectual Property and the answer to Question part (ii) of 
Question 121 list items that do not receive copyright protection. 
What is meant by "copy or imitation"?  Woul d satire, mimic and impressions be covered by 
copyright? 
Answer:
  
The previous draft Law on Intellectual Prope rty has been substantially amended.   
From our understanding, the terminology "Copy" means the new work has been created from original 
work without any modification.  "Imitation" means the new work has been created from original work 
but slightly modified with the aim to confuse the public.  
The Law on Intellectual Property does not cover satire,  mimic and expressions of work as indicated in 
Article 76 concerning the areas that would not be protected as copyright works. 
Question 86 
Article 3 of the Draft Law on Intellectual Property provides that "the Government may 
designate a Government Agency or a third person  to execute the right(s) in relation to any 
intellectual property right without the approval of the owner..."  This appears to conflict with 
the requirement that the author be given certain exclusive rights. 
Please explain how this provision could be used  with regard to copyright and related rights. 
Answer:  
Members' comments were taken into account in fi nalizing the draft Law on Intellectual Property.   
The Law on Intellectual Property, Article 53 concerns compulsory licensing on the use of patent and 
petty patent (utility model), and Article 71 concerns the exception in case of emergency for new 
varieties of plants. But there no such compulsory li censing in the area of copyrights and related rights.  
Nevertheless, the Law on Intellectual Property Artic les 97 and 98 allow exceptions in copyright as 
provided for in TRIPS Article 13.  These Articles also comply with the Berne Convention  WT/ACC/LAO/16 
 Page 33 
 
 
 Article 10(2) "recognition of teaching purpose", Article 11 bis (1) and (2) "news reporting on current 
events", and Article 13 "recording musical work",  and a special compulsory licence regime for 
reproduction and translation of text s by developing countries, subject to strict conditions (The Berne 
Appendix).   
Question 87 TRIPS require protections for compilations of data, whether in machine readable or other 
form, which by reason of the selection or arrang ement of their contents constitute intellectual 
creations. 
Where does Lao PDR provide this protection? 
Answer: 
 
The Law on Intellectual Property protects the compilati on of data in different forms as stipulated in 
Article 75 concerning derivative works from copyrights. 
Question 88 
The draft Law on Intellectual Property fails to  provide copyright owners with rights required 
by TRIPS, including Articles 1-21 of the Bern e convention.  Please advise where each required 
right is granted.  Specifically, please advi se where the following rights are granted: 
- Rights of reproduction, broadcasting and communication by wire or wireless means, 
including loudspeaker, for literary and artistic works; 
- Rights of public performance and communica tion to the public of dramatic, dramatico-
musical works and musical wo rks and translations thereof; 
- Rights of public recitation and communicati on to the public of recitations for literary 
works and translations thereof; 
- Rights of adaptation, arrangement or other alteration for literary and artistic works; 
- Rights to authorize the cinematic adaptation and reproduction, distribution, public 
performance or communication to the public of the works thus adapted for literary or 
artistic works; 
- Right of rental for computer programmes; - Rights for the fixation of their unfixed performance and the reproduction of such 
fixation for performers; 
- Rights to the broadcasting and communicati on to the public of their live performance 
for performers; and 
- Rights to the direct and indirect reproduc tion and rental of their phonograms for the 
producers of phonograms. 
Answer: 
 
Members' comments were taken into account in fi nalizing the draft Law on Intellectual Property.   
The Law on Intellectual Property protects copyrigh t owners with the rights as required by the 
TRIPS Agreement: 
- Article 84 concerns the rights of copyrights owners; 
- Article 85 concerns the rights of ow ners of cinematography and drama; WT/ACC/LAO/16 
Page 34 
 
 
 - Article 86 concerns the copyrights related to  computer programme and data collection; 
- Article 90 concerns the rights of phonogram producer; and - Article 91 concerns the rights of A udiovisual Broadcasting Organizations. 
- Trademarks, including service marks 
- Geographical indications, including appellation of origin 
Question 89 Paragraph 124 on page 43 of the Factual Summary  notes that the existing legislation does not 
provide protection for geographical indications,  but provision would be included in the new 
Intellectual Property Law. 
Please explain how a later geographical indication would be handled if it conflicts with an 
earlier registered trademark.  
Answer: 
 
Members' comments were taken into account in fi nalizing the draft Law on Intellectual Property.   
If there is a conflict between a later geographical i ndication (GI) and an earlier registered trademark, 
the case will be considered on basis of Articles 23 and 25 of the Law on Intellectual Property.  The 
later GI that is in conflict with an earlier trademark will not be allowed to register.  
- Patents 
Question 90 Article 3 of the Draft Law on Intellectual Property provides that "the Government may 
designate a Government Agency or a third person  to execute the right(s) in relation to any 
intellectual property right without the approval of the owner... such execution shall be carried 
out within the limitations for which it was authorized, and the owner of the right shall be paid reasonable compensation." 
Please explain the circumstances under which the Government would designate another party 
to execute the right(s) with regard to patents, what the limitations would be, and what criteria 
would be used to determine that the compen sation to the right owner is reasonable? 
Answer: 
 
Article 53 of the Law on Intellectual Property concer ns compulsory licence on the use of patent and 
petty patent (utility model) which provides that:  In case of urgent needs related to national defence 
and security, foodstuff, safety of Lao people on health and sanitary, which is not for commercial purposes, the Government could allow individual or legal entity to use the patent and petty patent 
without the consent of the right holder but th e Government's permission should determine the 
limitation of use and the appropriate compensation by notifying the right holder.  However, the patent 
or petty patent owner has the right to oppose the Government's permission as well as compensation 
that is considered not appropriate within 60 days from the date of receiving notification.  In case of 
national emergency such as natural disaster or war, the Prime Minister could also allow individual and 
legal entity to use the patent and petty patent in wh ich the conditions of use is  also the same as stated 
above.   WT/ACC/LAO/16 
 Page 35 
 
 
 Question 91 
According to paragraph 136 of the Fact ual Summary, the Lao PDR representative 
acknowledged that Lao PDR would need to deve lop more specific legislation to comply with 
Article 39 of the TRIPS Agreement including a Decree on the protection of undisclosed 
information. 
Please explain which law the Decree will be implementing. 
Answer:  
The Law on Intellectual Property provides for the protection of undisclosed information as stipulated 
in Article 20 which concerns the conditions of subject matters to be considered as trade secrets or 
undisclosed information.  
- ENFORCEMENT 
Question 92 According to paragraphs 145 and 146 of the Factual Summary, the representative of Lao PDR 
said that the existing legislation on trademarks  and patents, petty patents and industrial designs 
allowed recourse to criminal proceed ings in case of infringement of intellectual property rights, 
and that the new Intellectual Property Law a nd its implementing decrees would also include 
sanctions against infringement of all intellectual property rights. 
Please explain how existing legislation compli es with TRIPS Article 61, which requires that 
criminal procedures and penalti es are to be applied at least in cases of wilful trademark 
counterfeiting or infringement of copyrights righ ts on a commercial scale, and that deterrent 
penalties must be made available.  
Answer: 
 
The Law on Intellectual Property, Article 134, pr ovides for criminal procedures and penalties.  
Question 93 
Paragraph 144 on page 47 indicates that the current Customs Law provides for customs 
authorities to inspect and seize infringing goods.  It is also noted that the implementing Decree is 
being revised to add further provisions to meet WTO requirements. 
- Does the current Customs Law allow for insp ection and seizure of both imported and 
exported infringing goods? 
- Please explain what the additional provisions in the Decree will include. 
Answer:  
The Customs Law, Article 76, provides for the ri ghts of customs officers to inspect and seize goods 
that violate intellectual property rights.  
A copy of the Customs Law and the Decree implem enting the Customs Law has been provided to the 
WTO Secretariat (see document WT/ACC/LAO/5/Add.1). WT/ACC/LAO/16 
Page 36 
 
 
 VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 94 Factual Summary (pages 48 and 49, paragraphs 147 - 152):  The Lao People's Democratic 
Republic makes no commitments on securities and futures-related services in the Financial 
Services Sector and accounting, audition, a nd bookkeeping under Professional Services.  
We would appreciate knowing the reasons for the absence of commitments in these areas and 
whether Lao PDR has any development plans for the future? 
Answer: 
 
As an LDC, Lao PDR is guided by the WTO Ge neral Council's 2002 Decision on LDC Accession and 
the GATS Agreement Article IV and XIV wherei n LDCs are only required to commit sectors 
commensurate with their level of trad e, financial and development means. 
Lao PDR's weak institutional and regulatory capac ity limits its ability to make commitments in 
services sectors that are beyond its means. 
__________