LAO PDR

Publication of List of Products Requiring Certification of Technical Barriers to Trade Before Importation and Exportation

On 15 May 2024, the Ministry of Industry and Commerce issued Decision on the List of Products Requiring the Certification of Technical Barriers to Trade-TBT Before Importation and Exportation No. 0782/MOIC ("Decision"). The purpose of the Decision is to identify the products that require the Technical Barriers to Trade ("TBT") certification before their importation and exportation.

Under the Decision, the products requiring TBT certification before importation and exportation are those that must obtain the necessary certificates, and subject to checking or inspection in conformity with the mandatory standards and technical regulations.

For example, the products requiring TBT certification before importation include all kinds of two or more wheeled land vehicles run by engines, which may be operated by a driver or driverless, radio frequency communication equipment, and telecommunication and information and communications technology (ICT) products, etc. Products requiring TBT certification before exportation must comply with the relevant regulations of destination counties and treaties to which Laos PDR is a party.

Importers and exporters of products specified in the table of the Decision must, prior to the importation and exportation of such products, submit to the relevant sector the appropriate application form and complete the documents required by such sector. 

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Publication of List of Products Requiring Sanitary and Phytosanitary Certification Before Importation and Exportation

On 15 May 2024, the Ministry of Industry and Commerce issued Decision on the List of Products Requiring the Certification of Sanitary and Phytosanitary-SPS Before Importation and Exportation No. 0781/MOIC ("Decision"). The Decision sets out the list of products requiring sanitary and phytosanitary ("SPS") certification before importation and exportation.

Examples of products requiring SPS certification before importation include food, food products and supplements, beverages that contain alcohol, animal food, and veterinary medicine. Products requiring SPS certification before exportation must comply with the relevant regulations of destination counties and the treaties to which Laos PDR is a party.

Importers and exporters of the list of products specified in the table of the Decision must, prior to the importation and exportation of such products, submit to the relevant sector the appropriate application form and complete the documents required by such sector. 

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VAT Increased to 10% from 1 May 2024

On 23 April 2024, the Minister of the Ministry of Finance issued Notification on the Implementation the Value Added Tax According to the Ordinance of the President No.003/PS, dated 19 March 2024 on the Revised Value Added Tax Rate No.1360/MOF ("Notification").

The Notification provides that, commencing on 1 May 2024, the value added tax ("VAT") rate on the following shall be 10%:

1. importation of goods from foreign countries and special economic zones;
2. supply of goods and services within the country by individuals, legal entities and organisations which are in the VAT system; and
3. receipt of supply of goods and services by legal entities that are not established in Lao PDR.

Regarding the calculation of the VAT, the Notification states that:

1. From May 2024 onward, supplying of goods and services within the country must issue invoices for VAT and apply the rate of 10% in calculating the VAT.
2. The supply of goods and services covered by contracts concluded prior to 1 May 2024 such as those relating to construction projects, insurance, etc. and for which no invoices were issued shall be charged the old VAT rate of 7%. However, if invoices are issued in May 2024 onwards, the VAT is calculated at 10% even if the supply of goods and services have not been completed on the date of the issuance of the invoices or advance payment has not been made.

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Revised Version of Enterprise Registration Certificate and New Printed Forms Related to Enterprise Registration Work

On 8 April 2024, the Department of Enterprise Registration Certificate of the Ministry of Industry and Commerce issued Notification No.0151/DoER on the Use of the Revised Version of Enterprise Registration Certificate and New Version of Printed Form related to Enterprise Registration Work ("Notification"). The Notification has taken effect from 29 April 2024. The key features of the Notification include the following:

1. Use the revised version of the Enterprise Registration Certificate, the contents of which have been updated in accordance with Article 18 of the Law on Enterprise.
2. The new printed forms related to enterprise registration work for individuals and legal entities are as follows:

• Application for enterprise registration of individual enterprise;
• Application for enterprise registration and incorporation of ordinary partnership;
• Application for enterprise registration and incorporation of limited partnership;
• Application for enterprise registration and incorporation of limited company;
• Application for enterprise registration and incorporation of sole limited company;
• Application for enterprise registration and incorporation of public company;
• Application for variation of enterprise registration certificate;
• Application for new enterprise registration certificate;
• Application for dissolution of individual enterprise;
• Application for dissolution of partnership or company; and
• Application for enterprise data.

It is noteworthy that the power of attorney forms relating to (i) enterprise registration, (ii) variation of matters in the enterprise registration certificate, (iii) enterprise dissolution and (iv) the application for enterprise data still subsist.

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