Import And Export System

Import procedures.

    The importation of goods requires a series of procedures ranging from the conclusion of a contract to import payments. The general import procedures include the conclusion of import contracts, the securing of import permissions, customs clearance and payments for imports. Procedures included in the optional category depend on the type of transaction and the nature of the goods to be imported.

     Imported goods legally enter into Laos when shipments have arrived at the port of entry; estimated duties have been paid, and delivery of the goods has been approved by the customs house concerned. There are many possible trading methods including the VC, TT and procedures, etc.
 

Conclusion of Contract.

     An import contract h concluded when an offer based on a written agreement or a contact between a Lao trading agent and a foreign supplier is received, or an offer issued overseas from a foreign exporter h accepted. Imports to Laos have been liberalized extensively but are still being administered in accordance to the Foreign Exchange Regulations, the Customs law and with special reference to the Export & Import Regulation issued by the Ministry of Commerce. All items can by freely imported unless they are specifically prohibited.

Import permission.

     An import license (permission) must be obtained directly from the Ministry of Commerce which delegates his authorities to provincial trade service, that means that import license can be obtained from provincial trade Service where importing enterprise is situated. An import license remains valid for, in principle, three months. Payment for imports, as well as customs clearance of imported goods should be completed within the term of the import permission.                                       
 

Establishment of letter of credits (L/C).

     A party receiving an import permission must establish an L/C through a foreign exchange bank within the effective time period. In an unavoidable circumstance, however, the period can be extended by submitting to the competent Bank an application for amendment to the L/C. When arranging the L/C, the same information as notes on the import authorization form must be used, The amount of the L/C should not exceed the authorized amount, and it must be expressed in the same currency specified in the import authorization form.
 

Receipt of Transport Documents.

     The foreign exporter having received the UC ships the goods according to conditions of the L/C and negotiates with transport documents as security. The exporter's bank then sends the transport documents to the bank which issued the UC, and after the UC opening bank has verified that the conditions of the transport documents are consistent with those of the UC, It settles the account of the import transaction and transfers the transport documents to the importers, The importer submits the bill of lading (B/L) to the shipping company and collects the import freights. If however the freight has already arrived but the transport documents have not, the importers may present a letter of guarantee (UG) to the shipping company and receive the freight in advance, after receiving from the importer's bank the L/G prepared under fixed conditions.
 

Customs Clearance.

     The importer unloads the imported freight and places it in a bonded area. Then the importer submits a report to the superintendent of the customs house. The customs clearance report can only be prepared by a consignee (importer), employing a certified customs specialist or a certified customs clearance corporation.

     Upon receipt of the import report, the customs house inspector will verify that the contents of the imported merchandise correspond with that described in the import authorization form and confirms that the documentation is in order. The tariff on the merchandise is then calculated and levied, and an import approval is presented to the person reporting the import. This person may remove the imported merchandise from the bonded area. After doing so, the import procedures are complete.
 

Export Procedures.

     Most of Lao export transactions are made under letters of credit, either in the form of at-sight drafts or issuance drafts. The exportation of goods requires also a series of procedures such as the conclusion of an export contract, the securing of export permission, the production of export goods, customs clearance and shipment, and the collection of payments. As for exports, those, subject to optional export procedures are determined by the type of transaction involved and the nature of the goods to be exported. This section focuses on the L/C method.
 

Export Contracts and receipt of L/C.

     The initial step in the export process is the conclusion of the export contract. The exporter receives a letter of credit from the importer. After receiving a letter of credit, the exporter should, prior to obtaining export permission, obtain a recommendation from an authority concerned assigned to review the items in question. This step is necessary to determine whether or not the export items are included on the list of products restricted from export under the government's export-import Notice.
 

Export permission.

     The exporter should obtain an export Permission for every export transaction he makes. This system is designed to ensure that export procedures are carried out in a lawful manner and to facilitate the collection of export bills. Authority for issuing an export permission is delegated to provincial trade service. On the application form for an export permission the exporter must include his name, the port of lading, settlement method, and period of validity, as well as specifications on the export items.
 

Export Inspection.

     To maintain the good reputation of Lao export goods and thus enhance their international credibility, in some cases the government conducts uniform inspections of designated export items prior to shipment. Inspection procedures can be classified into four categories: quality, packaging condition, material, design and manufacturing method inspection. Export inspection is not required for all commodities but pertains only to those items designated by the government.
 

Customs clearance.

      In order to export, the exporter must deposit the export commodities in a bonded area prior to submitting documents to the head of the customs house. The customs house inspects export commodities against invoices and export permits. If all is found to be in order, the customs house issues an export declaration for customs clearance. The required documents when applying for export declaration are:

• Five copies of the application for export declaration;

• One copy of the export permission;

• One copy of the invoice;

• One copy of the packing list;

• Other documents as required.
   

Export Shipment.

     After obtaining an export permit from concerned trade service and the customs house, the exporter arranges with a shipping company for the vessel. Finally, the exporter will have the export commodities loaded on board of the vessel by the forwarder.