On 20 April 2023, Instruction on Notification of Recognition and Request for Permission to Conduct Electronic Commerce Business No.0479/MOIC ("Instruction"), which was issued on 5 April 2023, was published in the Official Gazette of Lao PDR ("e-Gazette"). The Instruction took effect 15 days after its publication in the e-Gazette. The Instruction amends the contents of Articles 6 to 17, 35 to 40, 42, 51 and 59 of the Decree on Electronic Commerce No.296/GOV, dated 12 April 2021, for more clarity and to achieve uniformity in its implementation throughout the country.
The Instruction clarifies the requirements for electronic commerce ("e-commerce") businesses, including the notification requirement, certification of recognition of e-commerce, and application for business operating licences.
Notification of E-commerce Business
Individuals or legal entities that have been conducting electronic trading business or trading in the electronic market and electronic market services must notify the Department of Domestic Trade ("DDT") of their businesses or activities within ninety days from the date the Instruction came into effect, in order for DDT to verify, recognise and grant permission to allow them to engage in electronic trading businesses or activities. If they do not apply for permission to conduct business by the set deadline, measures as defined in Article 59 of the Decree on Electronic Commerce and the relevant laws and regulations will be taken against them.
Certification of Recognition of E-commerce
The affected individuals and entities must apply for a certification of recognition of e-commerce ("certification"). The certification is not a business operating licence. It is a verification of the identity of the electronic merchant to build public confidence in e-commerce, and also serves as a basis for resolving disputes.
The certification comes in two forms: (i) in printed form; and (ii) in electronic form issued through the electronic channel designated by DDT. Both forms have the same legal effect.
DDT will assess the application for the certification and the issuance of the same within three business days from the date of application. DDT may reject the application if the documents are incomplete or incorrect, and it must give a written response along with the reasons for the refusal. A certification is valid for two years and can be renewed.
Application for Permission to Conduct E-commerce Business
Individuals or legal entities that intend to conduct e-commerce business in the form of providing electronic market services must submit an application to DDT for the issuance of an e-commerce market service business operating licence.
