ADVANCE RULINGSADVANCE RULINGS Are binding Are binding

decisions decisions Issued by the Issued by the

Customs Customs headquartersheadquarters

In writingIn writing Prior to an Prior to an

importation or importation or exportationexportation

Prior to the pre-Prior to the pre-arrival declarationarrival declaration

WHY CUSTOMS IS WHY CUSTOMS IS IMPLEMENTING THEM?IMPLEMENTING THEM?

They are recommended by the WTO and the WCO. Advance Rulings are necessary under new WTO Valuation Agreements. They are required by many multilateral and bilateral treaties.

BECAUSEThy facilitate trade, increase transparency and predictability

POSITIVE EXPERIENCES POSITIVE EXPERIENCES WORLDWIDEWORLDWIDE

Most APEC Members: Australia, New Zealand, Most APEC Members: Australia, New Zealand, Singapore, China, Japan, Canada, USA, Peru, Singapore, China, Japan, Canada, USA, Peru, ChileChile

Are proven to facilitate and accelerate Customs Are proven to facilitate and accelerate Customs clearance.clearance.

Reduce clearance costs at a very low price.Reduce clearance costs at a very low price.

How are ARs useful for How are ARs useful for you?you?

No disputes at the actual moment of clearance

Faster Clearance

Checkpoint and Regional Customs officers DON’T have to take decisions

AT CUSTOMS CLEARANCE

Because Customs Director has already issued a binding decision after a process subject to quality control

ARs allow you to plan ARs allow you to plan your business in your business in

advance…advance…

Correct classification…Correct classification…

On the rightly estimated value…On the rightly estimated value…

Taking advantage of well known origin applicable Taking advantage of well known origin applicable rules…rules…

Following a well understood Customs procedure…Following a well understood Customs procedure…

= a better business decision= a better business decision

ClassificationClassificationThe identification of the The identification of the proper proper tariff heading and subheading tariff heading and subheading determines the duty rate to be determines the duty rate to be applied to goods. applied to goods.

HS coding system may contain HS coding system may contain thousands of headings with highly-thousands of headings with highly-technical chapters, such as chemical technical chapters, such as chemical compounds, textile goods, and compounds, textile goods, and electronic components. electronic components.

Sometimes, final classification Sometimes, final classification depends on laboratory analysis of a depends on laboratory analysis of a sample of the goods. With sample of the goods. With Advance Rulings the analysis is Advance Rulings the analysis is made before importation or made before importation or exportation.exportation.

ValuationValuationValuation ARs allow traders to know Valuation ARs allow traders to know which method shall be used to which method shall be used to estimate the value of the goods and estimate the value of the goods and what are the supporting documents what are the supporting documents that will be required to estimate and that will be required to estimate and proof the value of the goods.proof the value of the goods.

= can predict in advance what the value will be.

Rules of OriginRules of Origin For local producers willing to export ARs in For local producers willing to export ARs in origin allow them to plan in advance how to origin allow them to plan in advance how to take advantage of the available preferential take advantage of the available preferential treatment BEFORE requesting a Certificate treatment BEFORE requesting a Certificate of Origin.of Origin.

For foreign exporters, ARs allow them to For foreign exporters, ARs allow them to know in advance the preferential treatments know in advance the preferential treatments applicable in Lao PDR before having to applicable in Lao PDR before having to request a Certificate of Origin in its country.request a Certificate of Origin in its country.

Customs ProceduresCustoms Procedures What is the special procedure I should

follow for a temporary import? I want to import samples of a product

only for a demonstration… What should I do?

What are the documents I must show? For how long can I import rented

machinery? What are the steps of the procedure?

Make these questions to the expert using the ARs for procedures

WHAT IS CUSTOMS DOING?WHAT IS CUSTOMS DOING?

A Ministry of Finance Instruction was approved in A Ministry of Finance Instruction was approved in December 2012.December 2012.

Today we want to introduce to you the

DRAFT of the Customs Department Instruction.

WHAT THESE WHAT THESE INSTRUCTIONS SAY?INSTRUCTIONS SAY?

VALIDITYVALIDITY: : ARs are issued on the basis of the statements and supporting documents you submit. Therefore, any incorrect, incomplete or misleading information provided by the applicant shall make the advanced ruling invalid.

ARs are valid in all the territory of Lao PDR for one (1) year. After that, it is cancelled unless the renewal is requested prior to the expiration date.

Cont.Cont. Binding nature

ARs are binding in all Customs offices and checkpoints of Lao PDR, but Customs must examine that the goods entered are identical from those covered by the advanced ruling.

ARs are also binding for the applicant, who shall declare the imported goods in accordance with the advanced ruling.

Cont. Cont. Applying for an ARApplying for an AR Please read the instructions. You will be

required to attach important information. Download the form from the webpage; Fulfill the form; Print your label; Pay the fee and attach the receipt; Submit it at the Reception. You may receive a notification from the AR

Manager requesting clarifications or more information.

Cont. Cont. Process…Process…

Later, the Manager may contact you again: the AR Later, the Manager may contact you again: the AR Expert may need to talk to you to clarify or provide Expert may need to talk to you to clarify or provide specific informationspecific information. . They are doing their best to They are doing their best to understand everything and serve you well!understand everything and serve you well!

You will be given 15 days to provide the You will be given 15 days to provide the information or explain why you could not get it.information or explain why you could not get it.

NOTE: The attachments are VERY IMPORTANT. They NOTE: The attachments are VERY IMPORTANT. They will prove what you say. will prove what you say.

DECISIONDECISION

In 15 +2 more days, you will be notified of the In 15 +2 more days, you will be notified of the AR decision. AR decision.

Tomorrow you will see how they will look like.Tomorrow you will see how they will look like. Decisions will tell you the analysis of the facts Decisions will tell you the analysis of the facts

and of the information you provided and the and of the information you provided and the legal basis for the decision.legal basis for the decision.

You did not like it? You did not like it?

Request a RECONSIDERATION within thirty (30) following its notification. Bring more information to demonstrate why the advanced ruling has been erroneously decided.

Not happy either? Appeal to the Central Appeal Settlement Committee. They will only review the facts and considerations followed to issue the appealed decision. No new information or evidence may be brought at this level.

REHEARSALREHEARSAL

The Customs Department is in training to The Customs Department is in training to provide an excellent service through ARs.provide an excellent service through ARs.

Your support is needed by helping us to Your support is needed by helping us to practice.practice.

This rehearsal is a simulation that will allow us This rehearsal is a simulation that will allow us to be prepared.to be prepared.

How you will help?How you will help?

BRING YOUR QUESTIONSBRING YOUR QUESTIONS

Fill the applications with your question.Fill the applications with your question. Don’t worry about the attachments. One blank Don’t worry about the attachments. One blank

paper with a title is enough.paper with a title is enough. We will guide you through the process.We will guide you through the process.

THANK YOU!THANK YOU!