WORLD TRADE  
ORGANIZATION  RESTRICTED 
WT/ACC/LAO/12/Rev.5 
15 June 2012 
 (12-3152) 
Working Party on the 
Accession of the Lao PDR Original:   English 
 
 
 
ACCESSION OF THE LAO PDR 
 
Action Plan on the Legislative Work and  
Implementation of the Customs Valuation Agreement 
 
Revision 
 
 The following submission, dated 31 May 2012, is  being circulated at the request of the 
Government of the Lao People's Democratic Republic (Lao PDR). 
 
 
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 WT/ACC/LAO/12/Rev.5 
Page 2  
 
  Year Steps/Measures/Activities Technical Assistance 
(TA) 
2005/ 
2006 - Customs Law was adopted by National Assembly in May 2005; 
- Lao PDR joined the Agreement to Establish and Implement the ASEAN 
Single Window (ASW) in December 2005, aiming at strengthening coordination among ASEAN customs administrations and economic operators (importers, exporters, tr ansport operators, customs brokers, 
etc.) to effectively and efficiently implement the ASW by 2012; 
- Developed technical training programme; and 
- Created Post Clearance Audit Unit under Customs Department. TA received from 
IMF on building legal framework. 
2007 - Became the 171th member of the World Customs Organization (WCO) 
in January 2007; 
- Post Release Review commenced; - Commenced training to customs officers and traders on WTO CVA; - Commenced trade outreach programme (consultation/information 
dissemination); and 
- Decree implementing the Customs Law No. 362/PM, based on key 
principles of the CVA, was adopted on 19 October 2007. TA received from 
IMF on building legal framework. 
2008 - Work plan prepared for compliance with the WTO CVA; 
- Technical assistance received from the World Bank under Customs and 
Trade Facilitation Project.  The purpose is to assist Lao PDR in the implementation of an automated customs system ASYCUDA World. The project finances the acquisition of equipment, customization and installation including user training of UNCTAD's ASYCUDA at headquarter and nationwide at international border checkpoints in three phases:  1) development of prototype; 2) validation on a pilot site; and 3) replication to remaining checkpoint sites; and  
- Ongoing training and outreach programmes provided to customs officers 
and traders on WTO CVA.  TA received under 
the Customs and Trade Facilitation Project, funded by the World Bank. 
2009 - Guidance No. 0491/MOF on Implementation of Decree Implementing 
the Customs Law was adopted 12 March 2009; 
‐ Prepared valuation technical procedures; 
- Ongoing training and outreach programmes provided to customs officers 
and traders on WTO CVA;  
- Provided transitional assistance and guidance to traders; and 
‐ Commenced post release review. TA received from 
IMF on building legal framework.  TA received under the Customs and Trade Facilitation Project.  
2010 ‐ Risk management team was created to collect risk management data 
(company profile, import-export statistics and duties collection); 
‐ Ongoing trainings held for customs officers on the application of risk 
management; 
‐ Commencement of automation project implementation - ASYCUDA 
World (Phase 1:  Development of Prototype) supported by the World Bank and UNCTAD; 
‐ Instruction No. 1398/PM on Customs Valuation was adopted on 
16 June 2010;  
‐ Instruction No. 2401/CD on Customs Valuation of Imported Goods was 
adopted on 29 September 2010; 
‐ Implementation of the CVA by starting to apply transaction value 
(and the other methods provided for in the CVA) to goods imported under FTAs (e.g. CEPT-AFTA) and by Government projects and international organizations (began in November 2010);  
‐ Post release review of customs declaration was carried out to verify 
accuracy of declared value (based on the PCA Strategic Plan and work plan);  
‐ Ongoing training and outreach programmes provided to customs 
officers and traders on WTO CVA;  
‐ Reference price was reduced from 2,000 to 800 items; and 
‐ Customs Department began to prepare Regulation on PCA procedures. TA received from 
IMF on building legal framework.  TA received under the Customs and Trade Facilitation Project.  WT/ACC/LAO/12/Rev.5 
 Page 3 
 
 
  Year Steps/Measures/Activities Technical Assistance 
(TA) 
2011 ‐ Commenced automation project implementation –ASYCUDA World 
(Phase 2: Instalment of the Prototype at pilot sites) supported by World Bank and UNCTAD to provide information and reports by selected and low risk importers; 
‐ Decision No. 2095/MOF on the Use of Customs Declaration Form for 
Imported Goods subjected to Duties and Taxes was adopted on 26 September 2011; 
‐ Instruction No. 00266/CD on the Completion of Customs Declaration 
Form was adopted on 4 November 2011; 
‐ Revised Customs Law was adopted by the National Assembly in 
December 2011; 
‐ Commenced initial implementation of Risk Management;  
‐ Commenced initial implementation of Post Clearance Audit in 
June 2011 for goods imported under FTAs (CEPT-AFTA), Government projects and international organizations; 
‐ Provided training and outreach programmes for customs officers and 
traders on the application of the WTO CVA;  
‐ Held 3 workshops (for awareness raising, legal gap analysis and 
consultation with stakeholders) on the operation of National Single Window under ASEAN Single Window (ASW); and 
‐ Reference prices for general goods and luxury goods were eliminated, 
which there remained only on 6 items (vehicles and fuel) as of 31 December 2011.  TA received from 
IMF on building legal framework.  TA received under the Customs and Trade Facilitation 
Project. 
 
Full implementation of the CVA is a significan t challenge to Lao PDR from various angles 
relevant to technical, organiza tional and institutional aspects.  
It is the first time that Lao PDR has activ ated a system that demands introduction of 
modernized techniques of control and manageme nt on assessment of value of goods as well as 
adjusting the national legal framework for effectiv e implementation.  Alt hough it mostly concerns 
customs intervention, the matter is, by nature, a cross-sector issue dealing with those beyond the 
customs portfolio such as accounting standards and pr actices applicable in the country as well as those 
related to other sectors such as investment.  
It is important to look at the impl ementation from the following perspectives:  
1. Technical readiness of users of the Customs Valuation System (traders, importers, 
freight-forwarders, and the like);  
2. Technical readiness of the customs personnel;  
3. Readiness of the technical support system  as well as safeguard measures in protecting 
legitimate collection of revenues for ec onomic growth of the country; and 
4. Organizational structure of the implem entation and related institutional issues. 
Currently the World Bank and international or ganizations assist Lao Customs in meeting 
international requirements, and in explaining these i ssues to traders, investors and customs officers.  
In addition, taking into account the current capab ility of implementation of customs valuation in 
accordance with this WTO instrument, it is import ant to upgrade the legal framework for it.  
Lao Customs is conscious of some of issues w ith the legislation that were pointed out by 
Working Party Members.  To that end, Lao Cu stoms continues to progressively upgrade national 
regulations and mechanisms of impl ementation taking into account the current level of development.  WT/ACC/LAO/12/Rev.5 
Page 4  
 
  By the end of 2012, the following activiti es are planned or have been undertaken: 
- Complete the automated customs processing system - ASYCUDA World 
(Phase 3:  Nationwide rollout) supported by the World Bank and UNCTAD, including a sophisticated selectivity function to identify potential cases of undervaluation (completed);  
- Continue the preparation of Lao PDR's Na tional Single Window under the ASW by which 
customs transactions, processes and decisions are to be performed complying with the 
principles of: consistency, simplicity, transparency, and efficiency (ongoing);  
- Study tours on the establishment and operation of the ASEAN Single Window in the 
Philippines, Singapore and Indonesia (completed in February-May 2012); 
- Incorporate all provisions of the WTO CVA and its Interpretative Notes into two new 
regulations to supersede the Instructi on No.1398/MOF and Instruction No. 2401/CD 
respectively and further clarify some provisions of Instruction No. 00266/CD and Decision No. 2095/MOF (to complete by June 2012); Pr ovide training and outreach programmes for 
customs officers and traders on the application of the WTO CVA (ongoing); and   
- Reference prices for vehicles (4 items) to be eliminated by 31 December 2012, and for fuel 
(2 items) upon WTO accession.  
 Lao PDR will bring its legal framework into  compliance with the provisions of the 
WTO CVA by December 2012, while full implementa tion the CVA is to be achieved upon accession.  
  
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