Article 88. Customs offenses are classified in two categories : three degrees of minor offenses and two degrees of major offences.

Article 89. Minor offenses at the first degree include:

- Delayed detailed customs declaration;
- Inaccurate and incomplete declaration without impact on customs duties and on prohibition measures;
- Concealment, hindrance and refusal to present the necessary documents to customs officers' duties;
- Other offenses not classified under other categories.

Any persons guilty of minor offenses at the first degree shall be fined no less than ten thousand kips and no more than one hundred thousand kips.

Article 90. Minor offenses at the second degree include:

- Declaration of goods or containers in excess or less than the actual number;
- Declaration of goods or containers in excess or less than the actual number;
- Goods less or in excess to the actual quantity and failure to declare;
- Other infractions not classified under other categories;
Any persons guilty of minor offences at the second degree shall be considered as responsible for customs evasion in view of reducing or avoiding payment of customs duty and shall pay customs duties and other fees in totality according to the law and regulations, together with fines equaling the evaded duties. At the second offence the fines shall be equal to two fold the payable customs duties.
Seized non-prohibited goods and materials used for concealment and vehicles used in the offence shall be restituted to their owners after payment of customs duties and fines in totality.

Article 91. Minor offences at the third degree includes:
- Third minor offences at the second degree;
- Import or export of non-prohibited goods into or out from the Lao People's Democratic Republic without detailed customs declarations;
- Inaccurate data declaration influencing customs duties;
- Voluntary false declaration of the mane of the freight forwarder at the point of departure and name of the actual freight receiver at the point of destination;
- Inaccurate declaration for the purpose of receiving customs duty exemption;
- Concealment of non-prohibited goods to elsewhere which does not enjoy privilege for the consumption of such goods.
- Presentation of several units or containers grouped as one unit or container to customs officers;
- Concealment of goods through the sue of vehicles or materials for customs evasion

Persons guilty of customs offenses at the third degree shall pay duties if such duty has not yet been paid and other fees in totality according to the laws and regulations, together with fines equaling who fold the evaded duties. At the second offence, the fine shall be equal to three fold.

Seized non-prohibited commodities and materials used for concealment and vehicles used in the offence shall be restituted to their owners after full payment of duties and fines.

In case of repeated offenses over two times, the offender shall be subjected to court procedures.

Article 92. A Major offence at the first degree includes the export or import, removal, procession of prohibited commodities without proper authorization.

Any person committing major offences at the first degree shall be subject to a lawsuit and fined two folds the goods' value while the illicit goods shall be confiscated in totality, including materials and vehicles used in the offence.

Article 93. A Major offence at the second degree includes the smuggled export or import, circulation or possession of prohibited goods jointly by a collective organization.

Any person guilty of major offences at the second degree will be subject to a lawsuit and fined three fold the goods' value, while the illicit goods shall be confiscated in totality, including materials and vehicles used in the offence.

Article 94. As customs officers discover illicit goods belonging to general criminals case, such as: weapons, opium, heroin or other narcotics, or if customs officers are offended, threatened or subjected to physical injuries, the customs authorities shall induce an initial lawsuit, then hand over the court file, the defendant and the evidence to the investigation police and establish a file for presentation to the prosecutor.

Chapter 2
Certain Additional Penalties
for Customs Offenses

Article 95. In addition to the main offenses as mentioned in Article 89 to 94 above, goods shall be seized in the following cases:

- Substituted goods or goods to be substituted under the duty suspension regime;
- Substitution or withdrawal of goods during international transportation;
- Import or export of goods without passing through the border customs office;
- Replacement, withdrawal of goods placed under the customs' supervision.

Article 96. If the decides on venalities on the charge of transgression to the customs suspension regime, the offender shall not be authorized to temporarily import or export the goods, nor to send goods across the border, nor to store the goods in the warehouse.

Persons allowing offenders to use their names for the purpose of evading the above penalties shall be liable to receive equal penalty.

Article 97. If goods which should be confiscated are seized or not, but if there is sufficient evidence, the customs authorities may request the court to decide their confiscated in case.

Article 98. In case of offences belonging to several categories, either minor or major, additional penalty shall be decided in favor of the Government depending on the nature of the offence.