Laos speeds up customs reform
Laos speeds up customs reform
The government is speeding up customs reform and modernisation as part of efforts to integrate the economy of the landlocked country with the rest of the region.
The Ministry of Finance's Customs Department announced yesterday that it is now improving its administrative structure, developing its human resources and modernising its working tools so that it can implement the Asean tariff code system next month.
As an Asean member country, Laos needs to apply the regional tariff code system, which will make it easier for businesspeople throughout the region to freely import and export goods anywhere within Asean.
The regional economic community is scheduled to come into effect at the end of 2015, creating a single market and production base.
The department made the announcement during a workshop yesterday to inform customs officers and businesspeople about the Asean tariff code system.
Some 70 customs officials and businesspeople from Vientiane attended the event where they learned about the tariff code system and how it works. The customs department has held similar workshops three times over the past couple of years to inform those involved of the coming changes.
Laos will have to continue to reduce import and export tariff rates on all goods to zero by 2018, in accordance with the requirements of the Asean Economic Community and Asean Free Trade Area.
Laos does not impose tariff charges on most goods imported from Asean countries. But it still charges import duty on items such as vehicles and fuel, as this is a significant source of income for the government.
By 2018, Laos will have to abolish tariffs on all imported goods, in line with requirements.
The government has introduced a Value Added Tax and plans to adjust excise tax rates this year as part of efforts to secure revenue after the abolition of import and export duties in 2018.
The tax rate adjustments are also in line with the requirements of the World Trade Organisation. Laos became a member of the global trading body in February this year.
One of the main challenges the government faces in terms of revenue collection is a lack of skilled personnel and modern technology. To address the challenges, the government has committed funds towards customs reform and modernisation.
vientiane times
