Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 1 - Jan/Feb/Mar 2023
 

Ministry of Public Works and Transport Modernises Transport Management System

The Ministry of Public Works and Transport ("MPWT") has changed the management, monitoring and inspection of cargo, cargo containers and cargo vehicles passing through international crossings by land, water, rail and air with the use of the cross border transport management ("CBTM") system.  This is to facilitate the transport of goods in a convenient and efficient manner, and be compliant with laws and regulations by recording, storing and reporting transport information electronically or printing documents from the system.


The CBTM system refers to the web-based application system of the Lao International Truckers And Freight Forwarders Association ("LITFA") with a centralised database, which is used for recording entry-exit information and maintaining goods, cargo containers and cargo documents through an electronic system. The CBTM system can be accessed through mobile phones (Smart Phones), computers, tablets and other electronic devices.


According to the Instruction on Cross Border Transport Management, No. 2525/MPWT, dated 30 January 2023, for foreign cargo vehicles that temporarily enter the customs territory of Laos, cargo carriers must comply with the following requirements and conditions:


  1. Be members of LITFA and have paid the association maintenance fee in full within one quarter (for old members). New ordinary members must have paid the registration fee and association maintenance fee in full after the approval of their membership;
  2. They are a contracting party with a foreign shipping company that (i) has been authorised to operate the shipping business properly and (ii) has a document certifying that it is a guarantor for the contracting party in accordance with the LITFA agreement form in the CBTM system;
  3. Pay the costs, system usage fees and other obligations issued by LITFA;
  4. Attend the CBTM system training, pass the exam and have their own access code;
  5. Issue shipping documents on behalf of the foreign carriers, and be responsible for ensuring transportation as well as insurance for each trip; and
  6. No criminal record issued by the court indicating that they have been prosecuted or sentenced in relation to violations in transporting goods.

Users of the User ID system in the CBTM system are classified into three categories: (i) User ID of the Trade and Transportation Facilitation Committee Secretariat; (ii) User ID of the international checkpoint; and (iii) User ID of the operator.



Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

Rajah & Tann (Laos) Co., Ltd
Anou Village,
Samsenthai Road, Unit 17,
Chanthabouly District,
Vientiane Capital, Lao PDR.
http://la.rajahtannasia.com


Contacts:

Lee Hock Chye
Managing Partner
D +603 2273 1919
F +603 2273 8310
hock.chye.lee@christopherleeong.com

Khanti Syackhaphom
Legal Advisor
D +856 21 454 239
F +856 21 285 261
khanti.syackhaphom@rajahtann.com

Desmond Wee
Director
D +65 62320474
desmond.wee@rajahtann.com

Rajah & Tann Asia is a network of legal practices based in Asia.

Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client.

This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update.