Update on Registration of Import-Export Activities in the Lao PDR
February 19, 2024The Ministry of Industry and Commerce (“MOIC”) issued a decision in May 2023 to require goods import-export businesses to register with the MOIC to obtain a goods import-export operator registration certificate (“Goods Import-Export Registration Certificate”) in the Lao PDR (which is in addition to an import-export license or other business operation license) by 31 August 2023. This deadline was then extended to 31 December 2023. Unfortunately, since 1 February 2024, new applications have been closed until further notification from the MOIC. Without this certificate, import-export operators cannot import or export any goods.
These are some of the key economic goods that are involved in import-export activities:
- Minerals
- Electricity
- Wood and wooden products
- Cigarettes/tobacco
- Alcohol
- Construction materials
- Fertilizer
- Road vehicles
- Petrol and gas
- Other consumables and supplies
This decision requires the import-export operators to maintain a monitoring record of goods imported, exported, or distributed in the Lao PDR, and then report it to the Foreign Trade Department of the MOIC on a quarterly basis.
The Goods Import-Export Registration Certificate has a one-year duration from the date of issuance.
Within 10 working days from the date of receiving the Goods Import-Export Registration Certificate, import-export operators must notify the Bank of the Lao PDR (“BOL”) to obtain a certificate to open an import-export bank account or convert an existing bank account to one for import-export activities. The account must be opened (or converted) with a commercial bank within 10 working days from the date the certificate is issued by the BOL.
Although the MOIC’s decision requires only goods import-export operators to register, in practice, both goods and services import-export operators are required to register with the MOIC and open an import-export bank account for their import-export activities.
Without such a bank account, import-export operators cannot receive or make payments from or to overseas for these activities.
For its customers, commercial banks are required to:
- Review and audit relevant import-export documents
- Observe and inspect payments relating to import-export activities
- Refuse to process the receipt or making of import-export payments through other accounts
- Report to the BOL on a daily, monthly, quarterly, and annual basis
Penalties
- Not registering as an import-export operator with the BOL: LAK10 million
- Not opening a bank account for import-export activities: LAK10 million
- Using other bank accounts for import export transactions: LAK10 million
Reference:
- Decision on the Registration of Goods Import-Export Operators No. 0752/MOIC dated 23 May 2023
- Decision on the Management of Foreign Currency in Relation to the Import-Export of Goods and Services No. 677/BOL dated 24 July 2023
- Notice on the Registration of Goods Import-Export Operators No. 1224/IC.CO dated 9 June 2023
- Notice on Management Measures of Goods Import-Export No. 3239/IC.CO dated 29 December 2023
- Notice on the Closure of the Registration System and Goods Import-Export Operator Data No. 0245/IC.CO dated 1 February 2024
- Notice on Continuation of the Registration of Goods and Services Import-Export Operators No. 1411/FCMD dated 28 November 2023
- Notice on the Registration of Goods and Services Import-Export Operators No. 774/FCMD dated 1 February 2024
If you have any questions about this alert or need further information regarding the above, please contact the undersigned or your usual VDB Loi adviser.
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