Article 1: Objective
Article 2: Definition
Article 3: Right to Issue the Advance Ruling Decision
Article 4: Correct Decision on Advance Ruling
Article 5: Scope of Use
Article 6: Content of Advance Ruling
Article 7: Standard of Advance Ruling
Article 8: Issuance of Advance Ruling
Chapter 2 Regulations on Issuance of Advance Ruling
Article 9: Application for Advance Ruling of the goods
Article 10: Receiving of Application
Article 11: Steps and Considerable Period of Application
Article 12: Issuance of Advance Ruling
Article 13: Description of Advance Ruling
Article 14: Re-consideration of Advance Ruling
Article 15: Extension of Advance Ruling
Chapter 3 The Relations between the Application and Advance Ruling Unit
Article 16: Notification to Applicant
Article 17: Electronic Application
Article 18: Confirmation of Receiving Application
Chapter 4 The Advance Ruling Unit
Article 19: Establishment of Advance Ruling Unit
Article 20: Organizational Structure of Advance Ruling Unit
Article 21: Establishment of Database for Advance Ruling
Article 22: Fee for Issuance of Advance Ruling
Article 23: Maintain Confidentiality
Article 24: Implementation
Article 25: Effectiveness
Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity
Ministry of Finance Ref No: 3610/MoF
Vientiane Capital, date: December 21, 2012
Instruction of the Finance Minister
On Advance Ruling
- Pursuant to Customs Law No. 04/NA, dated December 20, 2011
- Pursuant to the Decree of Prime Minister on the Organization and Functions of Ministry of Finance No. 80/PM, dated February 28, 2007.
- Pursuant to the Article 62 of ASEAN Trade in Goods Agreement (ATIGA)
- Pursuant to the Proposal of Lao Customs Department No………./LCD, dated………………
To facilitate the Customs clearance of the importation at the point of entry and to release the goods out from the Customs territory or the Customs warehousing in timely manner, correctly and consistently to the Customs Law and regulations as well as related Laws and regulations.
The Finance Minister Issues the Instruction as Follows:
This Agreement defines the rules, the procedures and the implementation to accept the proposal for advance ruling, the research and the issuance of decisions on advance ruling.
The advance ruling is to facilitate the trade and to ensure the confidence of business operators on the implementation of Customs Law and regulations of Customs officers and building the trust between Customs and business operators on the proposal processing and the issuance of decisions on advance ruling which comply with the Customs law. Top
Advance Ruling: means the issuance of decisions in writing of Customs on advance ruling and pre-arrival Customs clearance. Advance ruling is issued to business operator only who makes a request for decision and the advance ruling decision cannot be used by other business operators.
Advance Rulings Decisions: refers to the decisions on advance ruling made by Customs which stipulated in Article 28 of the Customs Law. Top
Advance Ruling Experts: means the Customs officials who are authorized or nominated to work in Advance Ruling Unit and they must be specialists on the customs declaration processing and other customs regulations such as HS and classification, Customs valuation, certificate of origin and others which relate to advance ruling matter.
Advance Ruling Manager: refers to Customs official designated in Advance Ruling Unit who is in charge for receiving the application for ruling, delivering, monitoring the application, coordinating and informing the decisions on Advance Ruling to the applicant.
Advance Ruling Unit: means a unit which falls under the supervision of a particular division of Customs Department and has the responsibility on receiving the application, researching and issuing the decision on Advance Ruling which comply with the Customs Law and regulation set forth.
Applicant: means Customs declaring include the representative of goods producer, exporter in foreign country for an imported goods into Lao PDR.
General Decisions: means the issuance of Advance Ruling decision in writing prior to the import or export of goods at the point of entry based on the application of Customs declaring. Top
Article 3: Right to Issue the Advance Ruling Decision
The right to issue the advance ruling decision is centralized from the Customs Department and issued by its General Director.
Division in charge for Advance Ruling shall consist of Advance Ruling Unit which performs as the secretariat and responsibility of receive research and issue the draft decision on Advance Ruling in accordance with their duty and scope of power. Top
Article 4: Correct Decision on Advance Ruling
The issuance of advance ruling shall be based on the sufficient and relevant information and data submitted to Customs officers. If the applicant provides insufficient information and data, it may result to the inappropriate advance ruling.
The decision on advance ruling can be valid not more than one year and can be applicable within Lao PDR from date of issuance. After one year the decision on advance ruling will automatically be terminated. Unless the applicants make a request to extend decision on advance ruling prior its expiration. The decision on advance ruling can be extended one more year.
Responsible division for issuing the advance ruling decision may cancel or edit the decision on advance ruling in accordance with the following conditions or criteria:
A. Revision of legislation on advance ruling; and
B. Customs official in charge changes the content of advance ruling decision.
In the case that Customs officers have information and strong evidence that the goods have been changed as defined in Article 28(4) of Lao Customs Law, the applicants shall make a request to Customs to issue the new decision on advance ruling where appropriate. Top
The advance ruling on Customs valuation, HS classification and rule of origin issued on Customs shall be used at all Customs border checkpoints across the country. The decision of advance ruling on each area mentioned above does not mean that Customs officials at Customs border checkpoints do not conduct any physical inspection of the imported goods. In addition, the decision of advance ruling on particular imported goods may also be applied to the imported identical goods.
The importer can use the advance ruling decision within the specified period of time unless the advance ruling decision is not proposed for elimination. Top
Article 6: Content of Advance Ruling
The advance ruling can be issued on the following areas:
A. Classification of goods: means the classification of the goods to the proper heading, sub-heading and import duty. The advance ruling on classification can be issued for one type of goods.
B. Customs Valuation: means the giving instruction or recommendation on the determination of Customs value, the method of Customs duty and tax calculation. However, the instruction or recommendation does not mean the determination of Customs value for the applicant. The advance ruling on Customs valuation can be issued for one type of goods.
C. Rule of Origin: means the determination of certificate of origin which enjoys the preferential treatment under any Free Trade Agreements. The advance ruling on certificate of origin can be issued for one type of goods.
D. Customs Procedure and Regime: provides the advice on Customs procedures and regime for conducting the Customs clearance for importation at Customs border checkpoints. The advance ruling on Customs procedure and regime can be issued for one Customs regime. Top
Article 7: Standard of Advance Ruling
The division concerned shall be compliance with the standard and criteria defined in the Customs Law on advance ruling, for instance, the classification of goods to ensure that the applicant or Customs declarant follow the same rules.
In the case that Customs officers have information and strong evidence on goods specified in advance ruling have been changed, Customs officers concerned will issue the official letter to the applicant to comply with the change of information. Top
Article 8: Issuance of Advance Ruling
The Advance Ruling Unit will consider the issuance of advance ruling to the applicant as assigned by the Director-General of Customs.
The decision on advance ruling shall be publicized and can be utilized with the imported goods which have the same characters or conditions
The Advance Ruling Unit does not have only the duty of issuing the decision but also has the right to remove or terminate the advance ruling on particular problem. Top
Chapter 2
Regulations on Issuance of Advance Ruling
Article 9: Application for Advance Ruling
The application for advance ruling can be made through manual or electronic format based on the form designated on advance ruling of classification of goods, Customs valuation, rule of origin, Customs procedures and Customs regimes and then submit to Advance Ruling Unit respectively.
The form for advance ruling shall contain Lao national language, English or any language. Such form shall describe the detail information regarding the advance ruling on one of the areas mentioned above and the detail information of the application just in case that the Advance Ruling Unit may require any further information or inform the application on the decision of advance ruling.
The form for advance ruling shall be printed the reference number on, the form of advance ruling shall also be described the specific information of the issues together with the attachment of supporting documents and/or sample of the goods. Top
Article 10: Receiving of Application
The Advance Ruling Unit receives the application submitted by applicant, examine the information and supporting documents properly and correctly in accordance with regulations, the Advance Ruling Unit will issue the receipt manually or electronically with the date, reference number to the applicant in writing. Top
Article 11: Steps and Considerable Period of Application
After the Advance Ruling Unit receives the application, the application shall be turned to the officers in charge for ruling. Within 5 working days, the concerned officers shall examine the application, supporting documents and request for additional information if necessity in order to consider the issuance of advance ruling in accordance with the steps provided.
The additional information requested by division in charge of advance ruling shall be made in writing and sent to the applicant concerned. The requirement of additional information shall be complied with content which stipulated in Article 9 of this Instruction.
The applicant must submit the information or related documents or notify the reasons that the applicant cannot submit the information within 10 working days from the date of receiving the application. In the case that the information is not submitted in due period of time, Customs may not consider and may issue the official notification the applicant on the reasons that the decision of advance ruling cannot be considered. Official letter issued by the Director of Division concern who is assigned as defined in Article 3 of this Instruction and shall make a photocopy for evidence. Top
Article 12: Issuance of Advance Ruling
Customs Department shall consider the issuance of advance ruling within 10 working days from date of receiving the application officially. The Chief of Unit shall examine the correctness within 5 working days prior signing the issuance of advance ruling. The Advance Ruling Unit shall inform the applicant to get the ruling within 2 working days as stipulated in Article………….of this Instruction.
In the case that the advance ruling shall base on the analysis of sample of the goods, the sample of the goods shall be analyzed at the laboratory as designated. While waiting for result of sample of the goods analysis, the issuance of advance ruling may take more than 10 working days as stipulated in this Instruction.
In this case, the Advance Ruling Unit shall officially inform the applicant on the result of analysis later. Top
Article 13: Description of Advance Ruling
The issuance of advance ruling prior the importation of the goods shall follow the criteria as below:
A. Advance Ruling shall be printed, signed and stamped by Customs
B. Advance Ruling shall consist of the following information:
- Information of issuing authority of advance ruling;
- The result of examination of information described in the application and supporting documents;
- The explanation, the result of laboratory analysis and related documents (if any);
- The explanation of related information based on the consideration defined by rule of law;
- Receiving information, explaining and analyzing;
- The effective use of advance ruling to the applicant and Customs;
- The period of time for the use of advance ruling;
- Customs officers have the right to inspect the goods to ensure that the imported goods and information described in advance ruling is matched or not;
- Applicant has the right to request Customs officers to re-consider if found that the ruling was not correct the application;
- The application provides insufficient, incorrect information or hides the information, he or she shall be responsible to the Customs Law;
- Customs officer who signs the issuance of advance ruling shall be assigned by the Director-General of Customs;
- One ruling shall be made in three copies: (1) for Customs Department, (1) for applicant and (1) for Customs border checkpoint where goods imported. Top
Article 14: Re-consideration of Advance Ruling
The advance ruling can be re-considered within 30 working days from the date that the applicant receives the ruling and the applicant can request for re-consider in two levels as following:
A. Submit the application to Customs officers who issue the advance ruling for their re-consideration together with the supporting documents and other related evidence to indicate that the original ruling is incorrect.
B. Submit the application to the committee at Customs Headquarters to consider the reality which is not required to present the new information and evidence. Top
Article 15: Extension of Advance Ruling
Prior the expiration of advance ruling one month, the applicant can make a request to Customs to extend the ruling one more year in accordance with the law.
In the case of extension of ruling, the applicant shall fill in the specifically designed form, supporting documents and other relevant to confirm that:
- The importation of goods is consistency with the information and duration of use as described in the advance ruling;
- Proper payment of Customs duties and taxes. Top
Chapter 3
The Relations between the Application and Advance Ruling Unit
Article 16: Notification to Applicant
The relations between the Advance Ruling Unit and the applicant can be communicated through letter, telephone or electronic letter or any other modes of communication as defined by regulation. The Advance Ruling Unit shall define the steps of receiving and sending the application in manual format or electronic format between Customs and the application as stipulated in Article 17 of this Instruction.
The communication between the Advance Ruling Unit and the applicant through letter, fax or electronic letter or any other modes of communication shall be accompanied by delivery note and receipt note for evidence. Top
Article 17: Electronic Application
When Lao Customs Department operates the electronic application, the applicant can easily access and submit the application and related supporting documents to Customs. The electronic application ensures the security and maintain the confidentiality as standard as stated. For example, the sample of goods and documents which cannot be sent electronically must send to the Advance Ruling Unit.
The electronic application shall send the Advance Ruling in accordance with the regulation. The system will record the information for the officers in charge to study, consider the issuance of ruling. In the case of system failures, the communication can be made through letter, fax, electronic letter or other modes of communication as stated in the regulation.
The documents that have been signed by the Director-General or Director of concerned division shall be printed out from the system for signing and then put it back to the system. Top
Article 18: Confirmation of Receiving Application
The confirmation of receiving the application as defined in Article 16 (Manual) and Article 16 (Electronic) shall be the date that the application arrives to Customs in writing. Top
Chapter 4
The Advance Ruling Unit
Article 19: Establishment of Advance Ruling Unit
Director-General of Customs Department authorizes to establish the Advance Ruling Unit under the supervision of particular division at Headquarters and the unit is in charge for receiving the application and consider the issuance of advance ruling decision on particular issue as stipulated in the Customs Law and this Decree. The Advance Ruling Unit has function and scope of power as following:
A. Receiving the application and issuing the receipt;
B. Examining the application and supporting documents whether or not it is correct;
C. Delivering the application to officers in charge for their consideration of issuing the ruling decision;
D. Communicating the applicant in case of:
- Request for information or additional explanation;
- Notify the explanation to applicant in the case the ruling cannot be made due to inadequate information provided;
- Notify the ruling decision to the applicant;
- Notify the changes about regulations or standard that affects to the issued ruling decision.
E. Manage and monitor the duration use of the advance ruling as defined in Article 12 of this Decree.
F. Propose to the Director of responsible division to issue the ruling decision as assigned by the Director-General of Customs;
G. Make a photocopy of ruling decision;
H. Issue the ruling decision;
I. Establish database of advance ruling which is not confidential information and access for general use;
J. Make a photocopy of any changes for the consideration of issuing the ruling decision;
K. Be a coordinator on advance ruling with related divisions;
L. Do other duties as assigned. Top
Article 20: Organizational Structure of Advance Ruling Unit
Organizational structure of Advance Ruling Unit has the right, scope and duties including the allocation of positions as following:
- Chief of Unit;
- Deputy Chief Unit
- Officers who receive the application, deliver the documents and communicate with the applicant;
- Officers in charge for classification of goods;
- Officers in charge for Customs valuation;
- Officers in charge for rule of origin;
- Officers in charge for Customs procedure and Customs regimes. Top
Article 21: Establishment of Database for Advance Ruling
Lao Customs Department shall establish database for advance ruling which is not confidential information and can be applied generally.
The database for advance ruling of Lao Customs Department can be accessed by the Customs declarant and be regularly updated. Top
Article 22: Fee for Issuance of Advance Ruling
Lao Customs Department issues the instructions on the collection of charges or fees for the issuance of advance ruling. The charges or fees are calculated based on any costs of issuance and the extension of the decision of advance ruling.
In the case of the new decision of advance ruling, the charges or fees can be calculated based on the following costs:
A. the original decision of advance ruling is still in valid;
B. the information described in the advance ruling is correct in accordance with the application initially stated;
C. proper payment of Customs duties and taxes in accordance with the type of goods as described in the advance ruling. Top
Article 23: Maintain Confidentiality
Customs officers in charge to receive, research and issue the advance ruling shall keep the ruling confidentiality as defined in Article 78 of Customs Law No. 04/NA, dated on December 20, 2011 and other related laws. Top
Customs Department issues the additional guidance on the implementation of this Instruction. Top
This Instruction is effective after sixty (60) days from the date of signature. Top
Minister of Finance Top
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