In 2013, Laos, the last ASEAN nation to do so, was granted full membership in the WTO. As a least developed nation, Laos has received special trading privileges from the EU, the US, and Japan, including tax exemption on imports and reduced tariffs for general Laotian goods entering international markets. The following trade agreement is currently in force with Laos:

One agreement for mutual investment with Vietnam

Laos’ top trading partners are its neighbors Thailand, Vietnam, and the Chinese mainland. The main exports are timber, mining products, hydropower, vehicles, machinery, and equipment are among the major imports. The Laos market profile on the HKTDC website contains a comprehensive analysis of trade policy.

Regulations

The Department of Customs, which is part of the Ministry of Finance, is primarily responsible for enforcing import and export regulations in the Customs Law (2011). The following departments and ministries are also in charge of overseeing import- and export-related activities in Laos:

• The Ministry of Industry and Commerce is in charge of issuing import and export licenses.
• The MOIC’s Foreign Trade Policy Department oversees international trade relations, cooperation with businesses, and policy.
• The Ministry of Agriculture and Forestry is responsible for all agricultural products,  
• Department of Food and Drugs under the Ministry of Health is responsible for drug products.

Export requirements

Only companies registered to do business in Laos can export goods. Before exporting it may be necessary to obtain an Export license. These licenses can be automatic or non-automatic, with automatic licenses granted provided that the normal statutory requirements are satisfied. Non‑automatic licenses may be granted on the basis of a determination made by DIMEX, and for certain goods (e.g. livestock, certain agricultural products, pharmaceuticals, etc.), it will be necessary to obtain approval from the relevant ministry. Generally, the following procedures should be followed when undertaking export activities in Laos:

1. Draft license application using DIMEX’s prescribed format.
2. Obtain support from the relevant Lao ministries.
3. Send the application form to DIMEX with supporting documentation.
4. Pay an export license fee of LAK10,000 to the Finance Division of the MOIC.
5. DIMEX will check on documentation sufficiency and issue the export license.
6. Transport documents must be submitted to the relevant Customs border post within 24 hours. 

Prohibited goods are listed in Notification No. 0973 and include weapons, narcotics, psychotropic substances, and hazardous chemical substances.

Tariff classification and export duties

Laos adopts the Harmonised System (HS) and duties are collected on both imports and selected exports. All imports are subject to VAT (exports are exempt) and some imports are subject to excise tax (e.g. gasoline, alcohol, electrical appliances) (e.g. gasoline, alcohol, electrical appliances).

The applicable rates can be found on Laos Trade Portal. The tariffs are detailed in the Tariff Nomenclature 2012 (revised in 2016) with rates varying between 5% and 40%. The applicable rates are subject to the origin of the goods and a certificate of origin will need to be presented. There are three tariff categories:

Special preferential rates  

Applicable if there is a trade arrangement between Laos and another country or region (e.g. ASEAN member states) (e.g. ASEAN member states).

Preferential rates

 Applicable if the country is a WTO member and thus entitled to Most Favoured Nation (MFN) status. In 2016 Laos’ average MFN applied tariff was 8.5% (WTO) (WTO).

Export duties

Export duties are only payable on some commodities. These include gems, electricity, gas, crude oil, timber, and conversions. Full detail is provided in the Edict on the List of Goods and Exported Tariff No. 002/OP.

Product standards and labeling requirements

The Department of Standardization and Metrology (DSM), Ministry of Science and Technology, is the country’s leading authority in the area of product standardization and all products must comply with the Law on Standards (2012). (2012). In addition, Laos has established hundreds of ‘Lao National Standards’ that businesses and traders operating in Laos can choose to apply to the products they deal in. Procedures for applying the National Standards are provided for in the Law on Standard.