Notice on List of Goods Requiring Import-Export Registration
On 5 September 2023, the Ministry of Industry and Commerce (“MOIC“) issued Notice No.1941/MOIC on List of Goods Requiring Registration for Goods Importer-Exporter (“Notice“). The Notice seeks to monitor the movement and payment of foreign currency from the import and export of goods by enterprises that are engaged in the import and export of goods throughout the country. The Notice adds in several categories of goods whose importation or exportation is subject to the registration requirement. Enterprises that import or export these goods shall obtain a certificate authorising their import or export activities (“certificate“). The additional categories of goods as specified in the Notice, along with the corresponding Harmonized System (“HS“) codes from the World Customs Organization are as follows:
No. | Description | HS Code |
1. | Mining | 2601 – 2617 except 2612 |
2. | Electricity | 27160000 |
3. | Wood and wood products | 4401 – 4421, 4701 – 4707, 4801 – 4812, 94 |
4. | Spare parts and electronic equipment, electrical equipment | 8501 – 8548 |
5. | Cigarettes | 240220 |
6. | Alcoholic beverages | 2203 – 2206 or 2208 |
Enterprises that import or export the above goods must complete the registration with the MOIC’s Department of Import and Export (“DIMEX“) by 31 October 2023. Enterprises that are not registered with DIMEX will be prohibited from importing or exporting these goods. Importers and exporters of other goods not covered by the list have the option to register until otherwise directed by any notifications relating to the import and export registration requirements.
The affected enterprises shall complete the registration form attached to the Notice and liaise with DIMEX to obtain the certificate. An enterprise that provides incomplete documents or information will not be registered, and will not be able to import and export goods until the registration is completed.
Following successful registration, the relevant enterprises must inform the Bank of Lao PDR (“BOL“) of all the accounts that they have opened with commercial banks and seek BOL certification of their commercial bank accounts. They will then request the commercial banks to convert their current accounts to a special import-export account.
Notice on Minimum Wage Increase
On 16 August 2023, Notice No. 1502/PMO on Minimum Wage Increase (“Notice“) was issued by the Laos’ Prime Minister’s Office. The Notice provides for the increase in minimum wage for all employees in Laos for 2023. This increase is a continuation of the increases in minimum wage pursuant to Prime Minister’s Notice No.829/PMO dated 13 June 2022.
The Notice augments the minimum monthly wage from LAK1.3 million (approximately US$66) to LAK1.6 million (approximately US$82), in accordance with an agreement concluded in the Government’s ordinary session on 28 July 2023. The new minimum wage rate took effect on 1 October 2023.
In order to improve the living condition of employees in the production, business and service units of companies as well as household workers, and compensate them with appropriate remuneration, the Minister of Labor and Social Welfare and the Chairman of the National Labor Committee issued the following instructions:
- Improve the minimum wage of workers in Laos from LAK1.3 million to LAK1.6 million per person per month (“minimum wage“) with effect from 1 October 2023.
- The minimum wage must be paid to employees entering the labour market who do not have skills, training, expertise, and professional qualifications, and who work no more than 26 days a month, six days a week and eight hours a day. The minimum wage does not include overtime pay, annual allowance, incentive to work, food, accommodation and other benefits.
- Employees who have (i) professional qualifications, (ii) specialised subjects at a certain level, (iii) previous work experience and (iv) worked in a labour unit for nine months shall be paid a salary or wage higher than the minimum wage as stipulated in the internal rules of the labor unit or the labor contract with the employees. If employers assign employees to works (including a job/an occupation) as required by law that are dangerous to health, the employers must pay them at least 15% more than the minimum wage.
- All labour units must comply with the improvement of the minimum wage along with the provision of labour welfare. They must also encourage all workers to access the social security system and have an annual health check-up.
Notice on Determining the Limits of Electronic Money Services
On 17 July 2023, the Bank of Lao PDR (“BOL“) issued Notice No.717/BOL on Determining the Limits of Electronic Money Services (“Notice“) informing commercial banks, non-banking financial institutions and legal entities that are electronic money service providers in Lao PDR on determining the limits of electronic money services (“EMS“). This is based on changing domestic and international economic conditions that have led to higher prices of goods and services.
To adopt to the economic situation and to meet the demand for the use of electronic money to pay for goods and services, BOL has redefined the limits of providing EMS. The details are set out below.
- EMS providers must determine the electronic money limit according to each type and level as set out in the following table:
Levels of service user | Type of money | Service provider is a bank | Service provider is not a bank |
Amount (LAK) | Amount (LAK) | ||
| 1. Type of Individuals | |||
| Level 1: Individual | Maximum transaction/once/ account | 25 million | 12 million |
| Withdraw cash/day/account | 5 million | 2.5 million | |
| Maximum transaction balance/day/account | 40 million | 20 million | |
| Maximum balance/account | 50 million | 25 million | |
| Level 2: Individual | Maximum transaction/once/ account | 30 million | 25 million |
| Withdraw cash/day/account | 10 million | 5 million | |
| Maximum transaction balance/day/account | 80 million | 40 million | |
| Maximum balance/account | 100 million | 50 million | |
| 2. Type of Legal entities (company, outlet, public and international organisation) | |||
| Level 3: Legal entities (companies and outlets) | Maximum transaction/once/ account | 75 million | 40 million |
| Maximum transaction balance/day/account | 150 million | 80 million | |
| Maximum balance/account | Payment service providers are customised according to the size of the legal entity and outlets. | ||
| Level 4: Public and International organisations | Maximum transaction/once/ account | Payment service providers shall conduct research and determine the appropriate amount together with public and international organisations, and must be officially authorised by BOL. | |
| Maximum transaction balance/day/account | |||
| Maximum balance/account | |||
| 3. Type of agents | |||
| Level 5: Sub-agent | Maximum transaction/once/ account | 50 million | 25 million |
| Maximum balance/account | 1 billion | 500 million | |
| Level 6: The main agent is an individual | Maximum transaction/once/ account | 50 million | 25 million |
| Maximum balance/account | 1 billion | 500 million | |
| Level 7: The main agent is a legal entity | Maximum transaction/once/ account | It depends on the permission given by BOL on a case-by-case basis, because the main agent that can expand the sub-agent must apply for permission from BOL and determine the amount of money based on BOL’s assessment on a case-by-case basis. | |
| Maximum balance/account | |||
- EMS providers must limit their EMS to the amount specified in the Notice (“Specified Amount“). In addition, an appropriate risk management mechanism must be determined in accordance with the regulations related to EMS as may be determined by BOL from time to time.
- EMS providers that intend to provide EMS in an amount that is different from the Specified Amount must notify BOL in writing for the latter’s consideration and research.
- EMS providers that violate the Notice will face sanctions in accordance with the relevant regulations.
The Notice replaced Notice on Determining the Limits of Electronic Money Services No. 730/BOL dated 8 September 2021.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
