[Unofficial translation]

Lao People’s Democratic Republic
Peace Independence Democracy Unity Prosperity

Ministry of Finance        No: 2667/MoF
Dated 22 August 2014

Order 
On Inspection Measure on Revenue Collection at the end of fiscal year 2013-2014 of Customs Department

• Pursuant to the Prime Minister’s decree No. 80/PM, dated 28 February 2007 on roles and responsibilities of the Ministry of Finance;
• Pursuant to the Prime Minister’s decree No. 241/GoL, dated 12 September 2013 on the implementation the Social – Economics development plan and Government revenue plan for Fiscal Year 2013 – 2014;
• Pursuant to the instruction of the Lao Central Government Party committeeNo. 09/LCGPC, dated 04 March 2014 to enhance ownership and leadership of the Lao Government Party members at all level to provide guidance on the Economic and financial work in order tosustain growth and maintain Macroeconomic stability.

The Customs’ Revenue collection for fiscal year 2013 -2014 has revealed more satisfied outcome which was able to compensate the Government’s expenditure at a certain level. However, additional revenue is currently in demanding in order to contribute to the Government’s development plan. Recognizingthat there is morepotential increase of the Customs’ revenue collection in the development plan of the country, Ministry of Finance encourages the Customs to actively increase the efficiency and effectiveness of the revenue collection gradually.

Minister of Finance issues an order to

1. Request all management level of Customs tocoach and encourage technical officials- Government party members to be active, hard-worked, focusedon implementing their tasks and duties, be ethical, be responsible, loyal and sensible to the central party and be concerned about the benefits of the country as their priority, be dedicated, be decisive to ensure the accomplishment of the tasks assigned by management level.

2. The major tasks to be completely implemented include:

• Attentively manage and monitor the customs valuation and duties/taxes of imported goods based on the transaction valueaccording to the law of Lao PDR and performed in a uniform manner across the country.
• Check the numbers of vehicles which customs declaration is over 04 months expire to ensure an immediate response according to customs Law and regulation.
• Coordinate with defense agency and other related agencies to identify all illegal imported vehicles, vehicles with no number plate or with counterfeit documents and then solve problems case by case to ensure laws and regulations are strictly applied.
• Actively resolved customs cases as soon as possible especially the case of wood confiscation and then establish the committee to conduction the wood confiscation auction and contribute to the Government revenue.
• Cease the import of dark oil and crude oilof processing factory until the processing procedures of the factory is proved an international standard.
• Increase the degree of control and inspection of materials, petroleum and other products under the customs exception of investment projects to ensure the proper use of the products as required.

3. The Director General of Customs Department is nominated for developing activity plan, identifying objective of the inspection and follow up, providing technical advises to all customs border checkpoints across the country.

4. The Director General of Customs Department is nominated for the establishment of the customs working group comprised with the Director, Deputy Director of Customs Division; Chief  and deputy Chief of Regional Customs to implement the activities as planned across the country.

After implementing the order, Customs Department shall report the implementation progress to the management of Ministry of Finance for advice regularly.

5. Customs Department is obligated to issue notification to immediately reassign or temporary put the Customs authorities on probation if the personnel appear to conduct against the customs Laws and regulation and causes a seriously harmful to the national social-economic stability particularly to the national revenue. Customs Department shall report to Ministry of Finance while waiting for the result of the proving process and if it is proved to be true, the customs department is obligated to disciplinethose personnel according to the Government personnel regulation.

6. Customs Department is obligated to issue a notification to cease the import-export or withdraw the business license of the business that intentionally conduct any smuggling activity, hide the real Customs and taxes payment which is against the Lao Laws and regulations and harmful to the national revenue.

7. During 2014-2015, customs officials at all level are required to extremely focus on anti-smuggling activities either inside or outside the customs checkpoints; eliminate all possible gap of hidden customs and taxes payment by declaring wrong information about products for instance type of products, amount, weight, price and country of export; continue to modernize Customs especially to enhance Customs ASYCUDA system at Customs checkpoint across the country to be fully implemented and able to link with other related agencies. This is to prepare for the establishment of the National Single Window; support trade facilitation, determine customs valuation, transit of goods, implement the ASEAN tariff reduction plan and other related activities.

8. The Customs Department, Personnel Department, Cabinet office of Ministry of Finance and all concern departments in Ministry of Finance shall acknowledge and fully comply with this order.

9. This order shall be effective from the date of signing.

Minister of Ministry of Finance

[Sign and Seal]
Dr. Lien Thikeo