Law on Customs (Revised) –

Laos
June 2019

This document is for research purposes only; it should not be used as an official document.
Source: World Trade Organization,
https://www.wto.org/english/thewto_e/acc_e/lao_e/WTACCLAO36A1_LEG_3.pdf
 ____________________

National Assembly No: 04/NA

Vientiane Capital, date: 20 December 2011

PART I
GENERAL PROVISIONS

Article 1. (Revised) Objectives

This Law provides principles, policies, rules and measures on export-import, transit
and movement of goods within the Lao People’s Democratic Republic with a view to
encouraging investments, protecting legitimate benefits in the fields of social, economic and
national security, international integration, ensuring effective revenue collection for the state
budget and contributing to national social and economic development.

Article 2. (Revised) Customs Duty

Customs duty means the monetary obligations that are paid to the State by individuals,
legal entities and organizations undertaking export and import, transit and movement of goods
through customs border checkpoints as specified in the customs tariff nomenclature.

Article 3. (Revised) Explanation of Terms

Terms used in this Law shall have the following meanings:

1. Customs Administration means the Department of Customs, Regional Customs Offices,

Customs Border Checkpoints and other Customs organizations, which are organizations
under the Ministry of Finance that are responsible for implementing the Customs Law
and other laws and regulations in a centrally uniform manner throughout the country.

2. Customs officer means a customs staff duly appointed to implement duties in the
Customs Administration at each level or any specific tasks.
3. Customs declarant means an individual, legal entity, organization, customs clearance
broker or authorized person who is authorized to prepare and submit customs declarations
and sign the detailed customs declaration forms.
 4. Other obligations mean various taxes and fees as specified in regulations, and the
Budget Law for which the customs officers are authorized to collect such taxes and fees.
5. Regular detailed customs declaration means filling in detailed information on exported
and imported goods on the forms provided by the Customs Administration.
6. Electronic detailed customs declaration means the application of information, data and
technology for declaring information on goods through the customs automated electronic
system of the Customs Administration.
7. Electronic signature means a signature of the customs declarant to certify the accuracy
of information declared by means of an electronic system and recognized by the Customs
Administration.
8. Specific route is any route for shipping goods determined by Customs officers to control
exportation, importation, transit and movement of goods.
9. Seizure of goods means withholding the goods temporarily while waiting for the results
of legal proceedings.
10. Retention of goods means retaining goods temporarily at the premises of the accused
suspect, and which such goods shall not be purchased, sold, transferred or pawned while
waiting for a determination of proof or the results of legal proceedings.
11. Confiscation of goods means the Customs Administration’s taking of goods that are
evidence of customs offenses to be State assets in accordance with court decisions.
12. Customs investigation body means the Customs Administration at all levels that are
assigned duties to investigate proceedings and settlement of customs cases.
13. Customs border checkpoint means international customs checkpoints, local customs
checkpoints and traditional customs checkpoints that authorize the entry and exit of
passengers, vehicles and goods.
14. Suspension of Custom Duty means to suspend for a designated period of time the
customs duty during the exportation-importation of goods, but should not be beyond the
time identified in the laws and regulations.
15. Expenses means the expenditures incurred for customs prosecution, warehouse,
uploading, maintenance, transportation and other relevant costs.

Article 4. (Revised) State Policy on Customs

The Government has a policy to promote individuals, legal entities and organizations
engaged in the export and import of goods to be aware of the need to pay obligations to the
State with an aim for national social and economic development, particularly to expand
strongly and continuously health care and education activities and to strengthen the
implementation of the duties of Customs Administration by means of laying out policies,
regulations, allocation and development of human resources, and providing the budget to
develop necessary infrastructure, vehicles and equipment for the implementation of customs
activities.
Article 5. (New) Customs Principles

Customs operations shall comply with the following principles:

1. Ensure uniform and centralized management throughout the country;

2. Ensure the promotion and growth of production, business operations and
investments;
3. Ensure justice, modernity, transparency, and prompt service and
accountability;
4. Facilitate trade and promote investment;
5. Collaborate harmoniously between vertical and horizontal lines of
management;
6. Implement various obligations of regional and international agreements,
treaties and conventions of which Lao PDR is a party to;

Article 6. (Revised) Goods Subject to Customs Duty and Other Obligations

All categories of goods exported from and imported to Lao PDR are subject to
customs duty and other obligations according to the rates defined in the customs tariff
nomenclature, except for cases where customs duty and other obligations are exempted or
suspended.
Individuals, legal entities and organizations that export and import goods shall pay
customs duties and other obligations as set out in the laws and regulations.

Article 7. (Revised) Customs Territory

The customs territory covers all territory of Lao PDR where the scope of functions of
customs officers is determined. Customs officers are allowed to exercise their functions
outside the customs territory in accordance with agreements or protocols in which the
government of Lao PDR has signed.

Within the customs territory, individuals, legal entities and organizations regardless of
nationality who export, import, transit and transport goods through customs checkpoints shall
comply with this Law and other relevant laws and regulations.

Article 8. (New) Customs Control

Customs control is an application of procedures, methods, regulations and measures by
customs administration according to this Law and other relevant laws to control the exportation,
importation, transit and movement of goods.

Article 9. (Revised) International Cooperation

The government opens and promotes relations and cooperation with foreign countries,
regions and the world on customs matters by the exchange of lessons, information, techniques,
technologies, training and upgrading of staff capacity and others, and to implement international
agreements, treaties or conventions of which Lao PDR is a Party to.
 PART II
CUSTOMS DECLARATION REGULATIONS AND PROCEDURES

Chapter I
Classification of Goods and Country of Origin
Article 10. (Revised) Classification of Goods

All categories of goods that are exported and imported shall be declared according to the
classification of each category of goods as specified in the Harmonized System Customs Tariff
Nomenclature.
The customs tariff nomenclature of Lao PDR is developed according to the Harmonized
Commodity Description and Coding System (HS) and amendment thereto.

Article 11. (Revised) Country of Origin

The country of origin is a country where a product is extracted, produced or changed

through production or processing processes, based on specified regulations in compliance with
regulations on the application of the Customs Tariff Nomenclature and [regulations] on the
determination of the content of the components or other regulations on trade.
Country of origin is used to determine the country where goods are produced and are
eligible to receive privileges for tariff reductions with respective countries which the government
of Lao PDR has signed preferential trade agreements.

Chapter 2
Customs Valuation
Article 12. (Revised) The Customs Value of Exported Goods

The customs value of exported goods is the actual value of goods, including
transportation costs delivered to the customs border checkpoint of export.

Article 13. (Revised) Customs Value for Import

Customs value for import shall be the actual value of goods including transportation
and/or insurance costs at the customs border checkpoint of import in accordance with WTO’s
General Agreement on Customs and Trade of 1994, pertaining to Customs Valuation.

The Ministry of Finance shall issue detailed regulation on the principle of import customs
valuation.
 Chapter 3
Customs Clearance Brokers and their Responsibilities

Article 14. Customs Clearance Brokers

Customs clearance brokers have the duty to declare customs duties on behalf of owners
of goods or transporters. The Ministry of Finance shall issue regulations with respect to
standards, requirements and the scope of operations of customs clearance brokers.

Article 15. (New) Responsibilities of Customs Clearance Brokers

Customs clearance brokers have the following obligations:

1. Conducting transaction with the Customs Administration for goods declaration

procedures; completing customs documentation, customs clearance, payment of duty and
other obligations; and removal of goods from a warehouse or checkpoint on behalf of the
goods owner;
2. Contacting the Customs Administration to register their electronic declaration system;
3. Declaring goods correctly to the Customs Administration and submitting supporting
documents in accordance with customs protocols and procedures;
4. Signing detailed customs declarations in electronic format and/or other formats on behalf
of the goods owner when authorized;
5. Paying customs duty and other obligations on behalf of the goods owner;
6. Participating in the inspection of goods with Customs Officer, for instance, opening
containers and boxes of goods, counting the quantity of goods, weighing and measuring
goods;
7. Representing owners of goods, transporters or other clients in dealing with the Customs
Authority for any breach of the Customs Law and regulations and other relevant laws and
regulations;
8. Being responsible for the costs of transportation, unloading, warehousing and other
expenses occurring during the inspection of goods.

Chapter 4
Customs Risk Management

Article 16. (New) Customs Risk Management

Customs risk management is the application of a Customs Administration mechanism to

analyze and select information for customs control that aims to ensure the facilitation of imports,
exports, transit, movement and inspection of goods by applying risk management principles.

Article 17. (New) Customs Risk Management Principles

Customs risk management principles are as follows:

 1. Apply risk management measures effectively throughout the customs territory and in
all customs activities;
2. Collect information within the Customs Administration and from other relevant
sectors to be used for analysis and selection of the management of risk effectively;
3. Issue regulations on risk management and develop standards of risk management in
parallel with implementing customs control and management effectively;

Chapter 5
Customs Formalities and Clearance

Article 18. (New) Customs Formalities

Customs formalities are the formulated provisions to control the export, import, transit
and movement of goods within a customs territory.

Article 19. (Revised) Declaration of Manifest and Conveyance Papers

When the goods arrive at the Customs border checkpoint, the declarant or the transport
service provider shall implement the following procedures:

1. Submission of manifest or declaration according to prescribed forms by Customs within

twenty-four hours;
2. Submission of conveyance papers to the Customs officers for control and management as
described in the Customs Law and regulations.
3. Prohibition to unload goods from conveyance prior to submission of the manifest, except
when they are authorized by Customs officers or in the case of force majeure.

Article 20. (Revised) Reporting of Personal Belongings of Passengers

Personal belongings of passengers travelling through customs checkpoints by car, train,

boat and airplane shall be under customs control. Passengers who possess goods in excess of the
amount permitted by regulations shall correctly and fully declare these to Customs in a
prescribed form.
Passengers shall comply with the regulations and other requirements regarding the export
and import of foreign currencies, Lao Kip, precious objects, and archeological and cultural
objects.

Article 21. (Revised) Declaring Mailed Goods by Post

Postal Parcels and items being imported, exported or placed in transit shall be subject to
customs control. This [control] shall be end only if customs formalities are carried out in
accordance with customs regulations.
 A legal person operating service of a freight forwarder and dispatching parcels and mail
shall be responsible for customs clearance on behalf of the goods owner as prescribed in
Customs Law and regulations.

Article 22. (Revised) Detailed Customs Declaration

The declarant shall submit a regular detailed customs declaration and/or an electronic
detailed customs declaration with regard to imported-exported or transit goods, as follows:

1. Fill in the information required in the detailed customs declaration form and sign it;
2. The detailed customs declaration verified by the Customs officers shall be registered;
3. Signature in the detailed customs declaration and/or electronic detailed customs
declaration has equal value;
4. The detailed customs declaration that has been approved and registered shall not be
subject to change except when the declarant has the information and evidence to
validate the need for the Customs Administration to consider to modify the information
before actual goods inspection by Customs officers;
5. If The detailed customs declaration has been erased, struck-out, or stained, it is
considered invalid.

Article 23. Customs Declaration Documentation

The documents required for detailed customs declaration are as follows:

1. Detailed customs declaration;

2. Invoice;
3. Manifest;
4. Packaging list (if any);
5. Certificates of origin (if any); and
6. Export or import permit (if any).

Article 24. (Revised) Time and Detailed Customs Declaration Measures

The declarant shall submit a completed declaration to Customs within fifteen (15)
working days from the date of the Customs officers record for the goods according to the
manifest.

If the declarant does not know detailed information regarding the goods, he/she is
allowed to examine actual goods in the warehouse based on the prescribed time identified in the
above first paragraph to prepare customs declaration documents.
In case the detailed customs declaration is submitted to the Customs Administration later
than the prescribed time, the goods shall be under special customs control and shall be subject to
the following procedures:
 1. Submit the detailed customs duty on goods within forty five (45) working days and shall
be fined at a rate of zero point one percent (0.1%) of the value of goods;
2. If he/she fails to submit a detailed declaration within 45 working days, the Customs
Administration shall announce or issue a notice to the declarant to make a detailed
declaration within twenty-one (21) working days; if the declarant submits a declaration
within such time period, he/she is subject to a fine of zero point five percent (0.5%) of the
value of goods;
3. If the extra 21 working days is over, the goods shall be subject to confiscation.
Customs declaration measures of goods to be used for Government’s projects are identified
in separate regulations.

Article 25. (Revised) Payment of Customs Duties and Other Obligations

After the Customs officers accept a detailed custom declaration form, the declarant shall
pay the duties and other obligations in full amount in Lao Kip according to relevant regulations.

Chapter 6
Inspection and Release of Goods from the Customs Checkpoint or Warehouse
Article 26. (Revised) Inspection and Release of Goods from the Customs Checkpoint or
Warehouse

After the detailed customs declaration is approved and registered, the Customs officers
shall inspect goods as a whole or part as deemed suitable.

Inspection of goods shall be carried out in the presence of the declarant at the customs
checkpoint or warehouse or its surrounding or another location specified by the Customs
Administration.

In case there are disputes in relation to the result of inspection of some goods, the
declarant may request the customs officers to re-inspect the entire goods.
After completing the inspection of goods, the customs officers shall record the results,
including the type of goods, quantity, weights, price, manufacturing country, transportation
vehicle, date and place of inspection and put a signature, name and family name on the detailed
customs declaration form and/or releasing note of goods.
In case the results of the inspection of goods are different from information declared on
the detailed and/or electronic customs declaration form, the customs officers shall make a case
report to initiate a customs case proceeding.

Article 27. (Revised) Security for Releasing Goods from the Customs Checkpoint or
Warehouse
 Security for releasing goods from the customs checkpoint or warehouse before the
detailed customs declaration shall proceed according to the following:

1. The declarant shall make a request for the deposit of security with the Customs
Administration;
2. The security shall be equal to customs duties and other obligations with an additional
twenty percent (20%) in cash or guarantee letter from a financial institution or bank or
individual, legal entity or organization that has a reliable financial status;
3. After releasing goods from the warehouse, within fifteen (15) working days, a detailed
customs declaration shall be made. Money or the guarantee letter shall be returned;
4. If the declaration is made later than the specified time, the declarant shall be fined zero
point ten percent (0.10%) of the value of goods;
5. If the declarant fails to comply with the security contract, the violator shall be prosecuted
based on the laws and regulations.

Chapter 7
Advance Rulings and Pre-Shipment Clearance

Article 28. (New) Advance Rulings

In case the declarant is not sure about identifying the customs classification code and
country of origin of goods needed to prepare for a detailed customs declaration, the declarant is
allowed to request for advice and to apply for an advance ruling from the Customs
Administration by following the procedures below:

1. The documents and/or samples of goods shall be submitted in writing to the Customs
Administration;
2. The Customs Administration shall consider the request in order to issue an official
certified document certificate of approval within fifteen (15) working days from the date
the customs officer receives full documentation;
3. In case the Customs Administration needs additional information, the declarant shall
provide relevant information within fifteen (15) working days from the date of receipt of
a notice from the Customs Administration. If it is beyond the deadline, the Customs
Administration may not consider the application.
4. The issued rulings of the Customs Administration are valid for not more than one (1) year
as long as the specifications regarding the imported goods do not change. If there is
strong evidence or information that the goods have changed, the certificate of rulings
shall be cancelled.
5. When there is information or evidence that a good has been changed, the declarant must
request to the Customs Administration to consider and issue a new rulings.

Article 29. (New) Pre-Arrival Customs Declaration

To facilitate the import and export of goods, the declarant may declare details of goods
before the arrival of goods at customs checkpoints and shall apply the following procedures:
 1. The declarant is eligible to make pre-arrival clearance within seven (7) working days
prior to the arrival of goods at the customs checkpoints and shall prepare sufficient
documentation as defined in Article 23 of this Law;
2. The payment of customs duties and other obligations shall take place at the time the
goods arrived at the customs checkpoint as defined in Article 25 of this Law.

PART III
CONTROLLED AND PROHIBITED GOODS
Article 30. (Revised) Controlled Goods

Controlled goods are goods as provided in relevant laws and regulations for reasons of
national security, sanitation, phyto-sanitation, environmental protection and others which are
under the control of Customs Administration.

Exportation, importation, transit and movement of controlled goods shall be authorized

by the Government or concerned State authorities as prescribed by laws and regulations.

Article 31. (Revised) Prohibited Goods

Prohibited goods are goods that are defined in relevant laws and regulations, especially
weapons, narcotics, psychotropic substances and hazardous chemical substances. It is prohibited
to export, import, transit, move, purchase, sell and be in possession of prohibited goods.

PART IV
INTELLECTUAL PROPERTY RIGHTS PROTECTION MEASURES

Article 32. (New) Protection Measures

If the owner of intellectual property rights has reliable information that imported,
exported or transited goods infringe his/her trademarks or copyrights, the owner of the
intellectual property right is entitled to prepare a request and submit it to the Customs
Administration to inspect and seize such goods temporarily.

Article 33. (New) Implementation of Protection Measures

The Customs Administration shall issue detailed regulations to implement the protection
measures as defined in Article 32 of this Law, in which it must be consistent with the Intellectual
Property Law and agreements and conventions that Lao PDR is party to.
 PART V
MOVEMENT OF GOODS

Article 34: (Revised) Movement of Goods within the Customs Territory

Goods that are subject to documentation for movement are goods for which customs
duties and other obligations have not been paid, duty free goods, goods imported under
investment promotion policy and goods that are moved within the warehouse regime.
The declarant who intends to move the goods within the customs territory shall follow
special routes specified by the Customs Administration; when goods arrive at the destination,
they shall be declared to customs officers to proceed with entry formalities.

Article 35. (New) Movement of Goods outside the Customs Territory

In case goods cannot be moved within the customs territory, the Customs Administration
may allow the movement of goods by using the territory of another country in accordance with
the agreement of the transit country; such goods are exempted from export duties as well as
export-import procedures.

The transportation of such goods shall be accompanied by the customs declaration form.

Article 36. (Revised) Transportation of Goods across International Borders

The transport operator or declarant who transports goods across an international border
and through the territory of the Lao PDR shall be approved by the relevant government
authorities and the Customs Administration as follows:

1. The transport operator shall provide a security in the form of check or a letter of guaranty
issued by a bank or financial institution in the amount equal to the customs duties and
other obligations;
2. The transport operator shall submit the relevant manifest to the Customs Administration;
3. The transportation vehicle shall follow a specified route and time frame determined by
the Customs Administration;
4. Goods under international transit shall be under the control of the Customs officers and
they are prohibited to be distributed;
5. In case of accidents or force majeure, the closest customs officers shall be informed; any
unloading of goods shall be approved by the customs officers;

In case goods are damaged by accident and cannot be recovered or goods that
affect the environment, the transport operator shall be responsible for it according to the
laws and regulations of Lao PDR;

6. The international transit of goods and its security shall end when such goods are
transported out of Lao PDR territory with a certification by the customs officer at the
relevant checkpoint. Security or the letter of guaranty shall be returned to its owner.
 PART VI
WAREHOUSES AND WAREHOUSE SYSTEM
Article 37. (Revised) Warehouses

The warehouse is a place to temporarily store goods and is located within the customs
territory and under the control of Customs officers while waiting for customs clearance.

Article 38. (Revised) Warehouse System

A warehouse system is the warehouses storing goods that are intended to be exported and
imported within a certain period of time with customs duty suspension and under the control of
the Customs Administration while waiting for customs clearance.
Warehouse system consists of 4 types as follows:
1. Bonded warehouse is a place used to store general goods with normal characteristics,
excluding goods that are classified for warehouse types 2, 3 and 4 of this Article;
2. Temporary warehouse is a place used to store goods destined for duty free shops with a
guarantee contract that the goods shall be sold to travelers who are going to other
countries and shall be sold in accordance with specific regulations.
3. Industrial warehouse is a place used to store goods intended for temporary export and
import for assembly, modification, processing or repair and then re-export;
4. Special warehouse is a place used to store certain types of goods, such as:
- Live animals;
- Controlled goods or goods that are under special control;
- Goods which have high risks and are dangerous and that are not appropriate to store
in other types of warehouse.
The Ministry of Finance shall be in charge of the approval of the establishment and
development of regulations related to the location for the establishment, application, control and
time for the storage of goods in each type of warehouse.

Article 39. (New) Perishable Goods

With regard to perishable goods without information on the owner, the Customs
Administration may sell them through auction and the money received will offset the necessary
expenses occurred in the auction, with the remaining money retained subject to further legal
proceedings.

Article 40. (Revised) Warehouse Management Procedures

 Customs officers shall have the right to examine accounts and goods stored in different
types of warehouses at any time according to regulations, if necessary.

In case the number of goods in a warehouse is not consistent with the accounts reported
earlier, the management of the warehouse shall be responsible according to the laws and
regulations.

The movement of goods within the warehouse system shall obtain a permit from the
customs officer.

PART VII
TEMPORARY EXPORT AND IMPORT OF GOODS

Article 41. (Revised) Temporary Export of Goods

Temporary exportation of goods out of the country and when bringing goods back into
the country again, if there are some modification, change or adding some elements to the goods,
shall be subject to customs duties and other obligations based on the laws and regulations, with
the cost of the modification, change or adding of some equipment used as the basis for customs
calculation.
Exportation of goods for the purpose of exhibition, experiment, research, analysis and etc.
in foreign countries shall be subject to detailed customs declaration, security and in compliance
with relevant regulations.
For controlled goods, authorization from relevant authorities shall be required.
Goods being temporarily exported shall be suspended from customs duties and other
obligations.

Article 42. (New) Temporary Importation

Temporary importation of goods includes:

1. Goods imported for manufacturing, processing, assembling, modifying or repairing;

2. Vehicles to be used for project survey and design;
3. Vehicles to be used for tourist visits;
4. Equipment to be used for project survey and design;
5. Goods for exhibition;
6. Goods for study and experiment.

Goods that are classified under clauses 1 to 6 above are suspended from the application of
customs duties and other obligations and when it is re-exported, it is subject to customs duties
exemption as specified in the regulations.
Article 43. (Revised) Importation of Materials for Manufacturing, Processing,
Assembling, Modifying or Repairing

Temporary importation of materials including container and packaging materials for

manufacturing, processing into finished products or semi-finished products, assembling,
modifying, repairing, and the goods are re-exported with authorization by the regulations of
relevant sectors, the goods are subject to customs suspension and shall be applied as follows:

1. Submit an import plan and/or production formula to the Customs Administration;

2. Comply with a specified time under temporary import regulations, and if failing to do so,
shall inform such to the Customs Administration;
3. The waste for production, processing, assembling and modifying finished or semi-
finished products of a quality not consistent with the requirements for re-exporting, shall
be subject to customs duties and other obligations according to regulations. If the waste
cannot be further used or it has affected on health or the environment, it shall be disposed
of according to the regulations and then reported to the Customs officers.

Article 44. (Revised) Importation of Vehicles for Project Survey and Design

Both domestic and foreign legal entities and organizations wishing to temporarily import
vehicles for project survey and design purposes according to the agreements made with the
Government of Lao PDR shall follow the requirements below:

1. Temporary import of vehicles shall be based on a master plan, with volume of work of
the project and agreements made with concerned sectors;
2. Importers of such vehicles shall have a valid registration from a foreign country;
3. A security contract with the Customs Administration shall be established and the
timeframe for the security contract shall be a maximum of two (2) years or should not be
beyond the project completion date. If an extension of the contract is needed, documents
and vehicles shall be presented to the Customs Administration for consideration thirty
(30) days before the contract is terminated.
4. In case such vehicles cannot be re-exported, documents and vehicles shall be presented to
the Customs Administration for consideration thirty (30) days before the contract expires.

Article 45. (Revised) Importation of Vehicles for Tourism and Visits

Any person wishing to import vehicles into Lao PDR for the purposes of tourism, visiting,
or business purposes shall follow the regulations of the relevant sectors and the following
requirements:

1. Shall present details of each vehicle to customs officers to process customs formalities;
2. Shall be vehicles that are already registered in foreign countries;
 3. Such vehicles shall be re-exported according to a specified time frame and at border
customs checkpoint identified by Customs officers; if they are over the deadline, they
shall be fined based on the regulations;
4. In case an extension for the permit is needed, documents and vehicles shall be presented
to the Customs Administration for consideration two (2) days before the deadline of such
permit.

Article 46. (Revised) Importation of Materials for Project Survey and Design

Both domestic and foreign legal entities and organizations wishing to temporarily import
materials and equipment, such as machinery and tools for surveying, designing and operating a
project according to an agreement made with the Government of Lao PDR, shall follow the
requirements below:

1. Importation of materials and equipment shall be based on a master plan, with the volume
of work of the project based on contracts made with concerned sectors;
2. The importation of materials and equipment shall have a usage life over the entire period
of the project and can be re-exported in the same quantity.
3. Such importation shall be suspended from customs duties and other obligations and shall
be under the temporary import regulation;
4. A security contract shall be made for the importation of such materials and equipment
with the Customs Administration with the time period of not more than one (1) year. If an
extension of the contract is needed, documents shall be presented to the Customs
Administration for consideration thirty (30) days before the contract is terminated.
5. In case such materials and equipment cannot be re-exported, documents shall be
presented to the Customs Administration for consideration thirty (30) days before the
contract terminates.

Article 47. (Revised) Importation of Goods for Exhibition

The temporary import of goods for exhibition shall follow the following procedures:

1. Shall obtain documents or security certified by relevant sectors;

2. Make a security contract with the customs administration;
3. Goods shall be re-exported in the same quantity and condition when the exhibition ends.

Article 48. (New) Importation of Materials for Education and Experiment

The temporary importation of materials for education and experiment that are not of a
commercial nature shall have certified documents from the relevant government offices and be
re-exported in the same quantity.

Article 49. (New) Temporary Importation Control Measures

 Anyone who makes a security contract with the Customs Administration shall strictly
comply with the specified time and requirements.

Temporarily imported goods are prohibited from ownership transfer, pawning, exchange,
being bought or sold or misused. If these conditions are violated, measures shall be taken
according to law and regulations.

In case it is necessary for domestic consumption, authorization from the Customs

Administration shall be required.

PART VIII
EXEMPTION, SUSPENSION OF CUSTOMS DUTIES AND OTHER
OBLIGATIONS

Chapter 1
Exemption, Suspension of Customs Duties and Other Obligations for
Diplomatic and International Organizations

Article 50. (Revised) Importation of Goods and Vehicles for Diplomatic Missions

The importation of goods and vehicles for diplomatic missions shall be in compliance with
the Vienna Convention on Diplomatic Relations of 18 April 1961, and subject to the
authorization by the Ministry of Foreign Affairs of Lao PDR are exempted and suspended from
customs duties and other obligations.

Article 51. (New) Importation of Goods and Vehicles for International Organizations

The importation of goods and vehicles for international organizations or international non-
governmental organizations and project-based international experts that have been certified or
approved by Ministry of Foreign Affairs of Lao PDR are exempted and suspended from customs
duties and other obligations.

Article 52. (New) Completion of Exemption and Suspension of Customs Duties and Other
Obligations

For goods and vehicles of diplomatic missions, international organizations and

international non-governmental organizations and project-based international experts for which
customs duties and other obligations have been exempted and suspended, after completion of the
mission in Lao PDR, these goods and vehicles are to be re-exported; however, if these goods and
vehicles are to be used domestically, they shall be subject to customs duties and other obligations
pursuant to regulations.
 Chapter 2
General Exemption of Customs Duties and Other Obligations

Article 53. (Revised) General Exemption from Customs Duties and Other Obligations

Imported goods that are exempted from customs duties and other obligations are:

1. Personal belongings of passengers;

2. Certain kinds of household items when changing a residency (moving house);
3. Gifts of a delegation from overseas official visits;
4. Goods obtained from government aids and borrowings;
5. Essential items used for education, health, scientific study, samples and religious
purposes;
6. Special items used for national defense and public security.

The government shall specify a detailed list of goods that are exempted from customs
duties; if necessary, the government is entitled to propose to the Standing Committee of the
National Assembly to consider and identify a list of goods for further exemption of customs
duties.

Article 54. (Revised) Exemption of Customs Duties for Personal Belongings

Passengers traveling to the Lao PDR with belongings will be exempted from customs
duties and other obligations as follows:

1. Precious objects and foreign currencies with a value not more than as specified by the
Bank of Lao PDR;
2. All types of alcohol not exceeding 2 liters, all types of beer not exceeding 5 liters, all
types of wine not exceeding 3 liters;
3. All types of cigarettes not exceeding 1 carton (200 cigarettes), cigars not exceeding 50
cigars or tobacco leaves not exceeding 250 grams;
4. Perfume and fragrant oils not exceeding one item each.

Article 55. (Revised) Exemption of Customs Duties for Certain Types of Household Items
While Moving a Residency

Students, civil servants and diplomats completing their missions abroad and foreigners
intending to have permanent residency who import household items and gifts of delegations
returning from an overseas activities, except for motorized vehicles are exempted from customs
duties and other obligations as follows:

1. Certain items and quantities that are not of a commercial nature;

2. Utensils and materials necessary for household;
3. Objects received from inheritance.
Article 56. (Revised) Exemption of Customs Duties for Goods Obtained from Grant Aid or
Loans by the Government

The importation of goods received as grants or loans by the government from foreign
countries and humanitarian assistance and disaster relief items shall be exempted from customs
duties and other obligations based on the decision of the Government.

Article 57. (Revised) Exemption of Customs Duties for Essential Items Used for
Education, Health, Scientific Study, Samples and Religious Purposes

The importation of some essential, non-commercial goods will be exempted from customs
duties and other obligations as follows:

1. Essential items used for education, health, scientific study and samples items shall be
certified by relevant sectors;
2. Religious items, such as Buddha Images, worship items, essential materials-equipments
and items for religious ceremony shall require a Certified Letter from the Lao Front for
National Construction in collaboration with the Information, Culture and Tourism Sector.

Article 58. (Revised) Exemption of Customs Duties for Professional Items Used for
National Defense and Public Security Forces

The importation of goods, weapons and professional vehicles to be used in national

defense and public security forces are exempted from customs duties and other obligations.

Article 59. (New) General Export Customs Duty Exemption

Exportation of agricultural products derived from production, plantation and breeding, and
industrial products that have been manufactured or processed, and handicraft products, are
exempted from export customs duties, except for some items of goods that require an export duty.

PART IX
EXEMPTION, SUSPENSION OR REDUCTION OF CUSTOMS DUTIES
AND OTHER OBLIGATIONS FOR INVESTMENT

Article 60. (New) Exportation-Importation under Investment Promotion Policy

In order to promote investment and support production according to Government policy,

the exportation-importation of goods are subject to exemption or reduction of customs duties and
other obligations based on the Law on Investment Promotion.

Article 61. (Revised) Exportation-Importation under the Policy of Special Economic Zones
and Specific Economic Zones
 The export and import of goods into and out of special economic zones and specific
economic zones are exempted, suspended or reduced from customs duties and other obligations
according to relevant and specific regulations.

Article 62. (Revised) Duty Free Shops

The Ministry of Finance shall authorize the establishment of duty free shops to distribute
goods to outbound travelers. Those goods are suspended from customs duties and other
obligations according to regulations.

Article 63. (New) Management of the Utilization of Goods, Vehicles or Equipment

Goods imported or exported under exemption, suspension or reduction regulations for

customs duties and other obligations shall be under the control of the Customs Administration.

Goods from a special economic zone and specific economic zone intended for distribution
or consumption in the territory of Lao PDR shall pay customs duties and other obligations
according to regulations.

Vehicles or equipment authorized for import under the investment promotion policy shall
be used for intended purposes and are prohibited to be distributed or sold in general. If a
violation occurs, customs measures shall be taken according to the laws and regulations.

PART X
MANAGEMENT OF DOCUMENTS AND APPEALS

Chapter 1
Management of Document, Post Clearance Audit by Customs Administration
Article 64. (Revised) Document Management Procedures

Business operators carrying out an import-export and transit business shall maintain customs
documents as follows:

1. Accounting data, detailed customs declaration as well as other supporting documents and
information shall be kept for a period of three years;
2. When customs officers requires auditing, business operators or their representatives shall
provide to the customs officers accounting data and records, document files and other
information relating to export, import and transit customs officers.

Article 65. (Revised) Duration of Time for Post Clearance Audit by the Customs
Administration

Detailed customs declaration forms shall be subject to post clearance audit by the
Customs Administration within a period of three (3) years from the date the detailed customs
declaration document has been registered or the date on that goods were released from a customs
warehouse or customs checkpoint.

Article 66. (New) Principles for Conducting Post Clearance Audit

Principles for conducting post clearance audit on the export, import and transit of goods by
the Customs officers shall be implemented as follows:

1. Re-examine all information related to customs clearance including goods in the stock of
business operators;
2. Examine reference documents on the export and import of goods such as the customs
declaration value, country of origin, classification of goods, payment information,
financial and accounting records and books and other information of business operators;
3. Keep or retain on a temporary basis all or part of evidence from business operators while
the inspection or investigation is being carried out;
4. Shall report audit results to business operators;

Relevant sectors shall cooperate in providing information on business operators upon request
of customs officers.

Article 67. (New) Post Clearance Audit Procedures

Post clearance audit procedures of Customs officers shall be implemented according to the
following steps:

1. Collect and analyze information on the detailed customs declaration forms;

2. Send a written notice to a business operator in advance to prepare information and
evidence for audit;
3. Visit business premises to conduct the audit activities according to regulations;
4. Conclude the audit results and implement remedies;
5. Inform the results of the post clearance audit to the business operators.

The Ministry of Finance shall issue detailed regulations related to post clearance audit.

Chapter 2
Appeal and Settlement

Article 68. (New) Appeal

Declarants shall have the right to appeal when finding out that they are not treated fairly
based on the agreements or decisions made by the Customs Administration on custom
declaration valuation, the classification of goods and the country of origin of goods.

The appeal of the declarant shall be implemented as follows:

 1. A declarant shall submit an appeal with supporting documents and evidence to the
Appeal Settlement Committee as specified in Article 69 of this Law;
2. Submit an appeal within thirty (30) days from the date the decision was made.

Article 69. (New) Appeal Settlement Committee

An Appeal Settlement Committee shall be appointed by Minister of Finance, consisting of

two levels, as follows:

1. The Regional Appeal Settlement Committee, with membership consisting of the Director
of Regional Customs as the chairman, representatives from Provincial/Vientiane Capital
Finance Department, relevant sectors and customs experts from where the Regional
Customs is located;
2. The Central Appeal Settlement Committee, with membership consisting of the Director
General of the Customs Department as the chairman, representatives from other
Departments under the Ministry of Finance, other concerned ministries and customs
experts.

Article 70. (New) Procedures for Settling Appeals

Procedures for settling appeals shall be implemented as follows:

1. After receiving an appeal, within thirty (30) working days, the Regional Appeal
Settlement Committee shall finalize the settlement of the appeal and notify the decisions
to the applicant;
2. In case there is an objection to the decision made by the Regional Appeal Settlement
Committee, the applicant may submit an appeal to the Central Appeal Settlement
Committee within fifteen (15) days from the date of receiving such decision;
3. In case there is an objection to the decision of the Central Appeal Settlement Committee,
the applicant has the right to further submit the appeal to the People’s Court within thirty
(30) days from the date of receiving such decision. The People’s Court decision is
effectively enforceable.

PART XI
USE OF BOATS FOR TRANSPORTING PASSENGERS OR GOODS
ALONG BORDER RIVERS
Article 71. Registration of Boats along Border Rivers

Any boat whose owner resides in Lao PDR to operate transport business along border
rivers shall be formally registered at the customs checkpoint where the boat owner resides.

Article 72. (Revised) Transportation of Goods along Border Rivers

 Before loading or unloading goods from a boat, the transporting boat for goods along
border rivers shall call at the port where the customs checkpoint is located, except for the case of
emergency. In such case, the owner of the boat shall present the boat registration paper and
manifest of the goods to the Customs officers for examination. During navigation or after
arriving at the port or if there is an inspection of the boat on the navigating route, the owner of
the boat shall present the boat registration paper and manifest of the goods to the Customs
officers for examination whether or not such boat is transporting goods and passengers.

If there is a sale, transfer or change to the features of the boat or the boat has ceased to
navigate, the owner of the boat must notify the Customs officers and the relevant organizations
where the boat is registered within twenty days from the date of sale, transfer or change to the
features of the boat or the boat has ceased to navigate.

Boat navigation on the Mekong shall be applied according to the Agreement of Greater
Mekong Sub-region Countries.

PART XII
ORGANIZATION AND ACTIVITIES OF CUSTOMS ADMINISTRATION

Chapter 1
Organization

Article 73. (Revised) Location and Role

The Customs Administration is an organization under the Ministry of Finance that has the
responsibility for managing customs operations based on a vertical line of command from central
to local levels; acts as the advisory body to the Minister of Finance in managing customs
operations at the macro level; and, carries out internal customs inspections and audits,
investigations and implementation of the Customs Law and other concerned laws and regulations
in order to implement its assigned duties effectively.

Article 74. (Revised) Organizational Structure of the Customs Administration

The organizational structure of the Customs Administration is as follows:

‐ Customs Department;
‐ Regional Customs;
‐ Customs border checkpoints consisting of international customs checkpoints, local
customs checkpoints and traditional customs checkpoints.

Article 75. (Revised) Rights and Duties of the Customs Administration

Customs Administration at each level has the following rights and duties:
A. Customs Department

1. Act as an advisory body to the Ministry of Finance regarding customs policy, laws
and regulations, strategic plans, and customs development plans;
2. Revise laws and regulations, and issue detailed implementation instructions;
3. Implement and disseminate laws, orders, and various policies relating to customs;
4. Consider and propose the establishment of a warehouse regime to the Ministry of
Finance for consideration;
5. Manage, supervise, monitor and control the organization, profession and activities of
the Customs Administration at each level nationwide;
6. Collect and provide export and import data about customs activities;
7. Develop plans for capacity building, training, allocation, appointment, dismissal and
reassignment of personnel; implement promotion policy regarding customs personnel
based on the laws and regulations.
8. Coordinate and cooperate with sectors at the central level and local administrations
with regard to customs activities;
9. Conduct post clearance audit, inspection and anti-smuggling activities, prosecute and
settle customs related cases;
10. Consider, study and settle appeal of the declarant based on its scope of responsibility;
11. Investigate customs cases and file customs cases to the People’s Prosecutor to litigate
cases in court;
12. Coordinate and cooperate with other countries and fulfill commitments under regional
and international agreements, treaties and conventions for customs activities that
Government of Lao PDR is a Party to;
13. Summarize and report the outcomes of customs activities to Ministry of Finance
regularly;
14. Implement other rights and duties as defined in the laws and regulations.

B. Regional Customs:

1. Act as an advisory body to the Customs Department to strictly implement strategy,

policy and customs management mechanism within its mandates according to the
Customs Law and regulations and other relevant laws and regulations;
2. Disseminate policies, laws and regulations regarding customs activities to individuals,
legal entities and organizations in the society so that they can be informed and be
aware of the compliance of the laws and regulations;
3. Supervise, manage, inspect and control the implementation of customs activities, the
professionalism and performance of Customs officers within the region and border
customs checkpoints under their jurisdiction;
4. Develop a plan for revenue collection from customs duties and other obligations for
the fiscal year within their jurisdiction to the Customs Department;
5. Consider and settle appeal of the declarant under their jurisdiction;
6. Conduct post clearance audits, inspections and anti-smuggling activities, prosecute
and settle customs related cases;
 7. Investigate customs cases and file customs cases to the People’s Prosecutor to litigate
cases in court;
8. Coordinate with local administrations and other government offices with regard to
customs activities within their region;
9. Develop plans for capacity building, training, allocation, appointment, dismissal,
reassignment, and rotation of customs personnel under its jurisdiction to the Customs
Department to consider according to regulations;
10. Supervise and evaluate the customs declaration activities of individuals, legal entities
and organizations in accordance with the Customs Law and regulations in order to
reward traders with good records of customs compliance as appropriate;
11. Implement international coordination and liaison with regard to customs activities as
assigned by the Customs Department;
12. Summarize and report the outcomes of customs activities to the Customs Department
and the Provincial, Vientiane Capital Administrations regularly;
13. Implement other rights and duties as defined in the laws and regulations.

C. Border Customs Checkpoint:

1. Implement plans, policies and the Customs Law and regulations within their
jurisdiction strictly;
2. Collect customs duties and other obligations accurately, fully in accordance with the
budget plan on a timely basis;
3. Manage and use equipment and tools in customs activities effectively;
4. Serve, manage, monitor, inspect and facilitate the export, import and transit of goods
through checkpoints quickly and accurately as defined in the laws and regulations;
5. Inspect and suppress any violations against customs laws and regulations and other
concerned regulations within their checkpoints and prosecute violators;
6. Coordinate with other government offices within the checkpoint while performing
their duties;
7. Summarize and report customs activities to Regional Customs and Municipality,
District Administration regularly;
8. Implement other rights and duties as assigned by Regional Customs.

Article 76. (Revised) Personnel Structure

The personnel structure of the Customs Administration is as follows:

1. Director General, Deputy Director General

2. Director of Division, Deputy Directors of Division; Head and Deputy Head of Regional
Customs;
3. Head and Deputy Head of Unit within the Division; Head and Deputy Head of Unit of
Regional Customs, Head and Deputy Head of International Customs Checkpoint;
4. Head, Deputy Head of Unit of International Customs Checkpoint, Head and Deputy Head
of Local Customs Checkpoint and Traditional Customs Checkpoint;
5. Customs staff and officers;
6. Some supporting staff.
 The appointment or dismissal of personnel at each level must be in accordance with
relevant law.

Article 77. (Revised) Qualifications of the Customs Officers

Customs officers have the following requirements:

1. Be a Lao citizen and must be over 18 years of age;

2. Have good attributes, ethics and loyalty;
3. Have an educational certificate, and obtain knowledge, competency, financial and
customs experience and relevant profession background, know some foreign languages;
4. No disciplinary measures or no intentional financial wrongdoing;
5. Be healthy.

Article 78. (Revised) Maintaining Confidentiality

Customs Officers and Authorities shall strictly maintain confidentiality.

Chapter 2
Rights and Duties of Customs Officers

Article 79. (Revised) Rights of Customs officers

Customs officers have the following rights:

1. To conduct investigations as defined in this Law and the Law on Criminal Procedure;
2. To seize goods and retain evidence that are related to custom offenses as defined in the
Customs Law, Law on Criminal Procedure and other relevant laws;
3. To inspect the premises and other locations, vehicles and individuals as defined in the
Customs Law and the Law on Criminal Procedure and other relevant laws;
4. To enter business premises and warehouses to inspect goods and relevant documents on
export and import transactions as defined in the Customs Law and regulations;
5. To use weapons, technical equipment and tools in performing their duties;
6. To collaborate in seeking cooperation and requests for assistance if needed from local
administrations at all levels, national defense and public security forces, the general
public and other relevant sectors;
7. To implement rights as defined in the laws and regulations and as per assignment.

Article 80. (Revised) Duties of the Customs officers

Customs officers have the following duties:

 1. To propagate, disseminate and give advice to the society, particularly individuals, legal
entities and organizations that are running export-import of goods;
2. To strictly implement the Customs Law and regulations and other relevant laws;
3. Provide quick and fair services;
4. To accurately and fully collect customs duties and other obligations on a timely basis;
5. To implement measures to prevent and suppress activities relating to all kinds of
smuggling and illegal trade according to the laws and regulations;
6. To maintain confidentiality of State and official secrets;
7. To summarize and report the outcomes of their performance to higher authorities
regularly;
8. To perform other duties as defined in laws and regulations.

Article 81. Operations within the Customs Radius

The customs radius is the control area of the Customs officers that extends thirty
kilometers inland from the border into the customs territory. If the customs office is established
outside the customs radius, the operations shall cover ten kilometers around the customs office.

In order to facilitate the prevention and suppression of smuggling, illegal trade and
violation of customs law and regulations, the Ministry of Finance has the right to issue
regulations extending the customs radius from thirty kilometers to fifty kilometers and from ten
kilometers to twenty kilometers around customs offices at specified locations and for specified
periods of time.

Article 82. Operations Outside the Customs Radius

In the case of hot pursuit of goods that are smuggled and evading customs with firm
evidence, Customs officers have the right to perform their duties throughout the customs territory
as defined in Articles 7 and 81 of this Law.

Article 83. (Revised) Uniform, Official Card, Sign, Badge and Seal

The Customs officers have a complete uniform, official card and others signs, including
insignia of rank, and other badges of authority.

Customs Administration has an official sign and seal.

The uniform, official card, signs, badge and seals are specifically identified.

PART XIII
PROHIBITIONS

Article 84. (New) Prohibitions for Customs officers

 It is strongly prohibited for customs officers to do the following behaviors:

1. Retard, falsify documents, or be irresponsible for the assigned tasks;

2. Abuse power, violence, threaten or take bribes that cause substantial damage to the
interests of the State, collectives or individuals and organizations;
3. Guard or collude with business operators to breach laws and regulations;
4. Falsify the customs declaration form, money receipt or other documents;
5. Use the money from customs duties and other obligations for personal enrichment;
6. Use, cause damage and losses, or take evidence from customs cases;
7. Other actions that violate the laws and regulations related to customs.

Article 85. Prohibition for Declarants

It is strongly prohibited for declarants to do the following behavior:

1. Destroy data and evidence, falsify documents, provide the false information and avoid
paying customs duties;
2. Offer bribes and obstruct the performance of the customs officers;
3. Humiliate, threaten and use violence against customs officers;
4. Collude to conceal and support actions related to payment of obligations by the
business operators;
5. Do other behavior that violates customs laws and regulations.

PART XIV
OFFENSES AND CUSTOMS PROSECUTIONS

Chapter 1
Customs Offenses
Article 86. (New) Customs Offenses

Customs offenses are violations of the Customs Law and regulations with respect to the
export- import, transit and movement of goods and all kinds of smuggling activities.

Article 87. (Revised) Types of Customs Offenses

Customs offenses are classified into two types: minor offenses and serious offenses.

Minor offenses have three degrees:

 Minor offenses at the first degree;

 Minor offenses at the second degree;
  Minor offenses at the third degree.

Serious offenses have two degrees:

 Serious offenses at the first degree;

 Serious offenses at the second degree.
Article 88. (Revised) Minor Offenses at the First Degree

Minor offenses at the first degree are as follows:

1. Incorrectly and incompletely declaring detailed information that did not cause a
significant impact on customs duties and other obligations;
2. Hiding or refusing to provide necessary documents to Customs officers as
defined in Article 64 of this Law;
3. Disturbing or creating difficulties to Customs officers to implement their duties;
4. Goods are not imported into or exported from Lao PDR through the checkpoint
as specified in the license;
5. Using vehicles to commit customs offenses;
6. Other offenses, if they are not included in other types of customs offenses.

Anyone who commits a minor offense at the first degree shall be fined as follows:

 For a value of goods lower than 5,000,000 Kip, they shall be educated and
warned;
 For a value of goods from 5,000,001 kip to 10,000,000 Kip, they shall be
fined five percent (5%) of the value of goods.
 [For a] value of goods [above] 10,000,001 Kip, they shall be fined ten percent
(10%) of the value of goods.

Article 89. (Revised) Minor Offenses at the Second Degree

Minor offenses at the second degree are as follows:

1. Declaring incorrect information that affects customs duties and other obligations such as:
classification, country of origin, tariff and tax rates, declared customs values, and other
information;
2. Declaring the incorrect number of boxes of goods or combining many units or many
types of goods into one unit or one type, and thereafter submitting to the Customs officers,
thereby intentionally evading the customs duties and other obligations;
3. Declaring the incorrect number of boxes of goods that are under customs duty and other
obligations that are suspended, exempted or reduced;
4. The export-import of goods without permission from relevant sectors;
 5. Decreasing or increasing the number of goods and not declaring the number of goods in a
warehouse regime;
6. Violating regulations on export, import, movement and transit of goods;
7. Using vehicles or goods that are under temporary customs duty and other obligations that
are suspended, exempted and reduced outside their purposes.

Any person who has committed minor offenses at the second degree shall fully pay
customs duties and other obligations as defined in the laws and regulations. In these cases, they
are also subject to a fine of 30 percent (30%) of the value of goods.

If the offense occurs a second time, the violator shall pay customs duties and other
obligations in full amount and also a fine of fifty percent (50%) of the value of goods.

The seized goods, materials and objects used for concealing and vehicles used for
committing the offense, that are not controlled by the State shall be returned to the owner after
the case is solved.

Article 90. (Revised) Minor Offenses at the Third Degree

Minor offenses at the third degree are as follows:

1. Minor offenses at the second degree committed for the third time;
2. Exporting or importing of non-controlled and non-prohibited goods out of or into the Lao
PDR without making detailed customs declaration;
3. Concealing goods through the use of vehicles or materials in order to intentionally avoid
customs duties;
4. Storing or possessing non-controlled or non-prohibited goods over the needs of
household consumption without holding detailed customs declaration documents
according to the laws and regulations.

Any person who has committed a minor offense at the third degree will be considered as
intentionally avoiding customs and shall pay full customs duties and other obligations and a fine
at seventy percent (70%) of the value of the smuggled goods.

If an offense at the third degree was committed for the second time, customs duties and other
obligations shall be paid in full amount according to the laws and regulations together with a fine
at one hundred percent (100%) of the value of the goods.

The seized goods, materials and objects used for concealing, and vehicles used for
committing the offense, that are not controlled by the State shall be returned to the owner after
the case is solved.

Article 91. (Revised) Serious Offense at the First Degree

 A serious offense at the first degree is the act of exporting-importing or moving of
controlled goods without holding a detailed customs declaration or without an authorization from
relevant sectors or if a minor offense at the third degree was committed on a repeated basis.

Any person committing a serious offense at the first degree shall pay a fine at thirty
percent (30%) of the value of goods. The seized goods shall belong to the State.

Article 92. (Revised) Serious Offense at the Second Degree

A serious offense at the second degree is a serious offense at the first degree that occurs
for the second time, and the violation of intellectual property rights and falsification of customs
documents.

Any person committing a serious offense at the second degree shall pay a fine of fifty
percent (50%) of the value of goods. The seized goods shall belong to the State.

A serious offense at the second degree is a criminal offense, in which the violators shall
be prosecuted based on the Law on Criminal Procedure and other relevant laws.

Article 93. Offense Related to Prohibited Goods

When Customs officers discover illegal goods, such as weapons, opium, heroin,
amphetamine or narcotics and other prohibited items, the Customs officers shall document the
seizure of these items and send the evidence with the suspect to the People’s Prosecutor for
prosecution as defined in the laws and regulations.

Article 94. Possessing Goods and Vehicles

Any person who possesses illegal goods or whose vehicles containing such goods shall be
responsible for such goods and vehicles.

Drivers of all kinds of vehicles will be responsible for customs and criminal activity only
if the violation of the Customs Law arises from their own actions.

Article 95. (Revised) Civil and Criminal Responsibility

The owner of goods shall be responsible for any civil offense on behalf of a person who
is assigned by the owner to carry out the customs declaration, payment of customs duties and
other obligations that are not according to the laws and regulations, and shall be responsible for
the seized goods.

The guarantor shall be responsible for the payment of customs duties and other
obligations according to the laws and regulations that are under the responsibility of the person
being guaranteed by the guarantor.
 The colluders for a customs offense shall be prosecuted based on Law on Criminal
Procedure and the measures of this Law shall be taken.
Chapter 2
Customs Prosecutions

Article 96. (Revised) Making a Report Regarding Seized Goods

When a customs offense is found, the Customs officers have the right to seize goods and
vehicles that are used to commit the offense as well as related documents as evidence for
prosecutions.

A written report regarding the seizure of goods shall be made immediately by at least two
customs officers.

The report of the seizure of goods shall be prepared in the presence of the suspect and the
suspect shall be asked to read the report. In case the suspect cannot read the report, this shall be
assigned to a third party to read out loud, then the suspect shall sign it or put his/her finger print
on the report. In case the suspect refuses to sign or to put his/her fingerprint on it, a remark to
that effect shall be written on the report. The report shall be made in three originals, one to be
used for the case file, another to be given to the suspect and the other to be kept with the
Customs Administration.

In case the suspect is not found, after the completion of the report, Customs officers shall
make a notice and post it in front of customs offices or on various media within forty-eight (48)
hours. The notice shall require the owner of the goods to contact the Customs Administration
within twenty-one (21) days from the date of notification. If the owner does not contact the
Customs Administration by the deadline, the goods will belong to the State; if they are controlled
goods or prohibited goods they shall be subject to court proceedings based on the laws and
regulations.

Article 97. (Revised) Statement Hearing

After the completion of the report on the seizure of goods, the Customs officers shall take
statements from the suspect and then make a statement report according to the following
procedures:

1. Taking a statement from the suspect shall be done immediately at the time of seizing the
goods. In case the statement cannot be obtained immediately, a report shall be made with
reasons for this;
2. Before taking statements, the Customs officers shall notify the suspect of the violations
and also explain the rights and obligations of an accused person; when taking a statement,
there shall be at least two customs officers present;
3. Taking of the statements shall be conducted in a place determined by the Customs
Administration;
 4. When taking of a statement is completed, the person who is giving the statement shall
read the contents of the report; if that person cannot read, there shall be third person who
reads it aloud or the report taker shall read it aloud and then the person who is giving a
statement shall sign it or put his/her fingerprint on it. If the person giving a statement
intends to modify by adding or reducing certain information, there shall be a signature on
the changes and he/she shall put a fingerprint in front of the corrected line;
5. In case the person who is giving a statement declines to sign or put a fingerprint on the
report, the Customs officers who are conducting an investigation shall make a remark to
this effect at the end of the report;
6. While taking a statement, the suspect or persons who are involved in the case and
officials who take the statement are prohibited from using violence, force, threats or
other illegal measures;
7. The report of a statement shall be made in three originals; one original is used in the case
file, another is given to the suspect and the other is kept with the Customs officers.

Article 98. (Revised) Preservation of Evidence

Goods and means of transportation that are seized for evidence shall be kept by the
Customs officers. It is prohibited to use, cause damage to, lose, interchange or steal the
evidence. The offender shall be responsible in accordance with applicable laws.

With respect to rapidly deteriorating goods or goods that are not appropriate for storage,
the Customs officers shall conduct auctions according to the laws and regulations. The sale
proceeds of such goods shall be kept by Customs officers until the termination of the prosecution.

Article 99. (Revised) Mutual Consent

Customs officers may settle customs cases based on the consent of the offender and
applicable laws and regulations.

From the date of signing the report, the offender shall make a consent settlement
regarding a case with the Customs administration within seven (7) working days. If he/she fails
to do so, Customs officers shall post a notice at the Customs Office or in the media requiring the
offender to make contact within twenty-one (21) days from the date of announcement. If it is
beyond the deadline, such goods will belong to the State; if they are controlled or prohibited
goods, they shall be subject to prosecution based on the laws and regulations.

In case the offender consents with the contents of the report, the Customs officers shall
enter into a consent report requiring the offender to pay customs duties and other obligations
with penalties immediately.

If the payment cannot be made immediately, it shall be paid not later than fifteen (15)
days from the date of making a consent report. After the payment is completed, the non-
controlled and non-prohibited goods with vehicles and materials used in connection with the
offense shall be returned to the owner.
Article 100. (New) Inspection of Vehicles and Persons

The inspection of vehicles means conducting inspections of all kinds of vehicles, boats,
ferries, ships, airplanes, trains or other means of transportation when there is strong evidence or
indications of concealing smuggled goods. Inspections can be made at any time and shall be
made in the presence of the owner of the means of transportation or drivers.

The inspection of a person shall be made in appropriate locations and shall be done by a
customs officer of the same sex as the person being inspected.

Article 101. (New) Inspection of Premises

The inspection of premises shall be implemented according to the following rules:

1. Shall request for an authorized order for inspection in writing from the People’s
Prosecutor or the People’s Court, except in the case Customs officers are chasing
smugglers at close distance or there is a face-to-face offense that is urgent. These
inspections shall be reported to the People’s Prosecutor or People’s Court within forty
eight (48) hours after the inspection is completed;
2. Prior to and after inspection, the Customs officers and persons involved shall be honest
with the owners of the premises that are being inspected;
3. Shall be done in the presence of owners of the premises, at least two witnesses and
representative of local administration. In the case of inspecting companies, offices, and
organizations, inspections shall be done in the presence of representatives of the
premises or concerned authorities;
4. Once the inspection is completed, a report on the findings of the inspection shall be made
and read out to people involved in the inspection and then signed by them or put his/her
fingerprint on it for evidence. The report shall be made in four originals; one original
version to be attached to the case file, another version given to the owner of the premises,
another original version give to the local authority and the fourth original version is kept
by Customs officers.

Chapter 3
Procedures for Submitting a Case to Court
Article 102. (Revised) Customs Cases Taken to Court

Customs cases that the Customs Administration can take to court are the following:

1. There is no consent to pay customs duties and other obligations as well as the fine;
2. The consent report is not complied with;
3. The seizure of goods and vehicles without any owner;
4. Security contract is not complied with;
 5. Offense is committed repeatedly or is a criminal offense.

Article 103. (Revised) Submitting the Case File

The Customs Administration shall submit a case file to the competent People’s Prosecutor
or People’s Court to prosecute based on the laws and regulations.

The case file shall consist of an application, a report regarding the seizure of goods or an
order to open the investigation, an investigation report and other required documents.

The contents of the application shall briefly indicate the offense of the offender, the
accusations, the articles of the law that are violated and the objectives and content of the civil
proceeding.

The proceedings shall comply with the Law on Criminal Procedure or Civil Procedure and
other relevant laws.

Article 104. (Revised) Cause for Opening the Investigation

The Customs Administration will conduct an investigation for a customs case in order to
proceed a case in court when customs documents are falsified, the case becomes complicated or
Customs officers are physically attacked and other offenses as defined in the Law on Criminal
Procedure or other laws that identify criminal offenses.

For the offenses that are considered as criminal offenses as defined in Article 102 of this
Law, when having sufficient evidence, the Customs Administration may submit case files to the
People’s Prosecutor to directly take the case to court without opening investigations.

Article 105. (New) Order for Opening Investigation

The Director General of the Customs Department may issue an order to open an
investigation under his/her mandate and according to the provisions of this Law and the Law on
Criminal Procedure.

Article 106. (New) Evidence for Case Files

The Customs officers who conduct investigations shall accurately, completely and
objectively inspect the evidence, including physical, documentary and witness evidence that
indicate legal offenses, as follows:

1. Physical evidence refers to the materials used as evidence in a customs offense, such as
the evidence received from the seizure of goods, objects, materials and other equipment
used for committing customs offenses;
2. Documentary evidence refers to information related to detailed customs declaration and
supplementary documents as defined in Article 64 of this Law, investigation
 memorandum and other records such as accounting books, photos and other documents
related to customs offenses;
3. Witness evidence refers to the statement of suspects, witnesses and certified comments
from experts and others that are related to customs offenses.

Chapter 4
Resolving Customs Cases
Article 107. (New) Resolving Customs Cases

Customs cases where a resolution has been consented to or goods that have been seized and
ownership has been transferred to the State, are considered to have been finally resolved, except
for the criminal offenses.

In cases where the organizations, civil servants, soldiers and police officers capture, seize
or confiscate smuggled goods in a face-to-face or urgent situation, they shall immediately
provide the case along with information and evidence to the nearest Customs officers to settle
customs cases as defined in this Law.

Article 108. (New) Allocation of Fines and/or Sale of Confiscated Goods

Once a customs case is completed and after deducting all expenses, the remaining money
from customs duties and other obligations shall be allocated to the State budget. For the
allocation of fines or sale of confiscated goods, it is identified in the separate regulation.

Article 109. (Revised) Participatory Obligation

In the course of customs officers performing their duties to combat and suppress customs
smuggling activities, civil servants, soldiers, police officers and the general public have the
obligation to participate and cooperate.

PART XV
CUSTOMS ADMINISTRATION AND INSPECTION

Chapter 1
Customs Administration Organization

Article 110. (Revised) Customs Administration Organization

The Government centrally and uniformly supervises customs activities nationwide by

assigning the Ministry of Finance to be the focal point for collaboration with other ministries and
relevant local administration.
 The Customs Administration Organization consists of:

1. Ministry of Finance;
2. Customs Department;
3. Regional Customs;
4. Border Customs Checkpoints.

Article 111. (Revised) Rights and Duties of the Ministry of Finance

The Ministry of Finance has the rights and duties to administer customs activities as follows:

1. To research strategies, policy plan, laws and regulations and plans relating to the
development of customs activities for submission to the government for consideration;
2. To issue regulations, decisions, orders, instructions and notifications relating to customs
activities;
3. To supervise, monitor and inspect the implementation of the duties of customs
administration throughout the country;
4. To propagate and disseminate policies and laws and regulations relating to customs and
other relevant laws;
5. To collaborate with various sectors at central and local levels and to supervise and
promote the implementation of the Customs Law and regulations;
6. To develop capacity building and training plans and provide incentives towards
outstanding customs officers based on regulations;
7. To cooperate and liaise with foreign countries and international organizations with regard
to the administration of customs activities;
8. To summarize and report to the Government and the National Assembly relating to
customs activities;
9. To exercise other rights and duties as stipulated in the laws and regulations.

For the rights and duties of Customs Department, Regional Customs and Border Customs
Checkpoint, it is stipulated in Article 75 of this Law.

Chapter 2
Customs Inspection
Article 112. (Revised) Customs Inspection Organizations

Customs Inspection Organizations consist of internal control organizations and external

control organizations.

1. Internal control organization:

‐ Ministry of Finance, Financial Audit Department of the Ministry of Finance.
2. External control organizations:
‐ National Assembly;
 ‐ Government Inspection Authority and Anti-Corruption;
‐ State Audit Organization;
‐ Local Administration at all levels, Lao Front for National Construction, Mass
organizations, civil society, mass media and other concerned sectors that are involved
in inspection according to their mandates.

Article 113. (Revised) Rights and Duties of Internal Control Organizations

Internal control organizations have the rights and duties to control the implementation of
laws and regulations and the performance of duties and responsibilities of the Customs
Administration at each level.

Article 114. (Revised) Rights and Duties of External Control Organizations

External control organizations have the rights and duties to control the implementation of
duties of the Customs Administration within their scope of rights and duties to ensure efficiency,
transparency and fairness of customs activities.

Article 115. (Revised) Forms of Inspection

Inspection by the Customs Administration consists of three forms as follows:

1. Regular inspection is an inspection that is carried out according to a plan on a regular

basis and at a specified time;
2. Inspection upon advance notification is an inspection that is conducted outside the plan
when it is necessary and that requires advance notification to the person subject to the
inspection;
3. Urgent inspection is the inspection that is carried out quickly without advance
notification to the person subject to the inspection.

During an inspection by the Customs Administration, the inspectors shall strictly carry out
their rights and duties as defined by the laws and regulations.

PART XVI
INCENTIVES TOWARDS OUTSTANDING PERFORMERS AND
MEASURES AGAINST VIOLATORS

Chapter 1
Incentives towards Outstanding Performers
Article 116. Rewards

Customs officers, civil servants, soldiers, police officers and the general public who
contribute to customs activities by providing data and information, and were involved directly or
indirectly in arresting suspects regarding customs offenses, shall receive reward certificates or
other benefits specified by the Government.

Article 117. (Revised) Policies towards the Declarant

Declarants who are honest and accurately and fully comply with the laws and regulations
on a timely basis shall be complimented and receive facilitation to operate their export-import of
goods.

Chapter 2
Measures against Violators
Article 118. (Revised) Measures against Declarants

Any declarant who violates the Customs Law and regulations and other relevant laws and
regulations, apart from education, warning, fine or prosecuted customs case proceedings, shall be
subject to compensation for civil damages resulting from their actions; and shall be criminally
prosecuted based on the severity of the case.

Article 119. Measures against Customs officers and Customs Administration

Any Customs officers and Customs Administration who violates the Customs Law and
regulations but does not cause any damage to customs revenues and other obligations will be
educated and warned.

Any person who intentionally violates the laws and regulations and their action results in
some damage to customs revenue and other obligations will be subject to disciplinary measures
in accordance with the regulations and must pay compensation for damages.

Any person who violates the Customs Law and regulations and cause substantial damage
to the interests of the State, the collectives or individuals, such as abuse of position, power and
duty for personal interests, taking actions exceeding their authority, falsifying documents, or
taking bribes, shall be subject to criminal prosecution depending on the severity of the offence
and in accordance with the laws and regulations.

PART XVII
FINAL PROVISIONS

Article 120. (Revised) Adjustment of Tariff

In case it is necessary to adjust a tariff to be in line with the national social-economic

growth in each period, the government may propose to the Standing Committee of the National
Assembly for consideration and propose to the President of the State to issue temporarily a
Presidential Decree for promulgation consistent with relevant laws, agreements and international
conventions in which Lao PDR is a Party to.

Article 121. (Revised) Implementation

The Government of Lao People’s Democratic Republic shall implement this Law.

Article 122. (Revised) Effectiveness

This Law is effective after ninety (90) days from the date the President of the Lao People’s
Democratic Republic issues a Presidential Promulgation Decree.

This law replaces the Customs Law No.05/NA dated May 20, 2005

Any regulations and provisions that contradict this Law shall be cancelled.

President of the National Assembly