Authorized Economic Operator (AEO) is defined as an entrepreneur who has been formally authorized by the Tax Administration in implementing the customs declaration and clearance process. This refer to the Instruction No. 1159/MOF, dated 18 April 2019.

Terms and condition which the AEO must meet the following criteria:

• Must have business register and taxpayer license;

• Must have business related import and export for at least 3 years and have at least 250 detailed tax reports per year. If a case of a representative or a branch of a foreign investment that will be considered case by case;

• Must have a consistent tax history and have a tax compliance rate of at least 98% of all tax returns;

• Must not have been prosecuted and / or prosecuted for tax misconduct for at least three years before accessing to the AEO.

The procedure for requesting an AEO:

1. The Customs Department's assessment form must be filled out. Please download from the Tax Department website: http://www.customs.gov.la/ or telephone number: +856 21 213810;

2. Submission of AEO’s Proposal to Head of the Customs Department, along with the completed assessment form and other relevant documents.

There are three steps to examine the AEO's terms and conditions:

      1. After the Customs Department has received the letter from the entrepreneur, it is necessary to complete and review all the documents and inform the result in written within 5 business days as follows:

      • For acceptance, the Customs Department shall notify the entrepreneur and site inspection within 5 business days of the notification;

      • For rejection, the Tax Department shall inform the entrepreneur and explain the reason for the rejection in order to fulfill what is missing.

       2. After completing the site inspection, the Customs Department shall proceed as follows:

• If the terms and conditions are successful, the Customs Department must issue the AEO Certification within 5 business days;

• If the terms and conditions are unsuccessful, the Customs Department must issue a notice to the entrepreneur and explain what needs to be revised.

3. A successful AEO must sign a contract with the Tax Department within 5 days after receiving the accepting notification.

 

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