aos Business-FAQ's.

• 2. EXPORTING.
  • 2a. Import Restrictions.
  • 2b. Import Duties.
  • 2c. Documentation.
• 3. COMMERCIAL POLICIES.
  • 3a. Free-Trade Zones.
  • 3b. Exchange Controls.
• 4. FOREIGN INVESTMENT.
  • 4a. Incentives.
• 7. REGULATORY AGENCIES.
• 8. USEFUL CONTACT.

2. EXPORTING.

Laos is essentially a state trading company. The Department of Foreign Trade in the Ministry of Commerce develops a national import-export plan. Imports are conducted by state trading companies, public enterprises, private enterprises, mixed companies (joint ventures between domestic enterprises and foreign investors), and cooperatives.
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2b. Import Restrictions.

Import licenses are required for imports of motorcycles, automobiles, trucks, jeeps, rice, petroleum products, cement, and other products that may compete with domestically-produced items.
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2c. Import Duties.

Laos uses the Customs Cooperation Council Nomenclature (CCCN) for classification of goods. Duties are assessed on a specific and an ad valorem basis, ranging from zero to 200 percent. However, the tariffs on most items do not exceed 45 percent. An import tax is usually assessed on goods along with a general internal tax placed on certain "strategic" imports.
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2d. Documentation.

Shipments to Laos generally require five copies of an import license, commercial invoice, bill of lading or air waybill and certificate of quality. The importer may also request a certificate of origin approved by a recognized chamber of commerce.
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3. COMMERCIAL POLICIES.

3a. Free-Trade Zones.

There are no free-trade zones or ports in Laos.
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3b. Exchange Controls.

The Lao Bank of Foreign Trade handles all foreign exchange transactions. Payments for authorized imports are made by using retained export earnings and foreign exchange allocated by the Lao Bank for Foreign Trade.
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6. FOREIGN INVESTMENT.

The government began a concentrated effort to attract foreign investment in 1988. In 1989, a comprehensive set of regulations for the foreign investment code was released. This code authorizes three forms of investment: business by contract, joint ventures, and wholly foreign-owned enterprises.

The investment code targets the following sectors for investment: agriculture, forestry, industry, transportation, communications, services, and tourism. In addition, the code establishes that the capital and other assets of foreign investors will not be nationalized or otherwise requisitioned by administrative procedure.
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6a. Incentives.

Incentives provided for foreign investment include:
tax holidays of up to four years; and allowance for tax-free investment for certain reinvested profits.
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7. REGULATORY AGENCIES.

* The Ministry of Commerce authorizes imports/exports to state trading companies, mixed private and public companies, cooperatives and public companies. The Ministry of Commerce also controls the issue of import/export licenses.
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8. USEFUL CONTACT.

Lao Import-Export Society
#43-47 Lane Xang Avenue, P.O. Box 749
Vientiane, Lao P.D.R.
Telex: #4318 COMLAO LS
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