Chapter 1
Removal of Guaranteed Goods

Article 28. The transportation of customs controlled goods by and water and air from one place to another within the customs territory shall be accompanied by guaranteed goods removal permits. The removal of such goods may be guaranteed by a deposit of equal value to the customs duties or may be guaranteed by a reliable financial institution or legal entity or individual. The removal of prohibited goods shall be accompanied by specific permits issued by the authoritative state agencies.

Article 29. Importers or transporters shall strictly comply to all wordings contained in the guaranteed goods removal permits.
Transporters shall present such removal permits to the customs officers along used routes.

Article 30. As goods are delivered to the specified point of destination, transporters shall immediately present removal permits and guaranteed goods to the customs office for detailed customs declaration according to the customs regime. Inspection of goods shall proceed according to the rules and principles applicable at the point of destination. if the customs duty remains payable, the customs duty in totality and proceed similarly to import goods for local consumption, except if such goods are categorized under other customs regimes.

Article 31. As customs officers certify that the specified conditions have been fully and properly implemented, the agreement contained in the guaranteed goods removal permits shall expire. In case of cash guarantee, such guarantee shall be reimbursed to the owner.

Chapter 2
Transportation though Foreign Territory
and Goods in Transit

Article 32. In necessary cases, locally produced goods and import duty paid goods according to the rules and principles may be removed from one place to another within the Lao People's Democratic Republic through foreign territory. Such goods will be exempted from export duty, and from exit and entry restriction rules.

The transportation of such goods shall be accompanied with guaranteed goods circulation permits. If such goods do not belong to the category of goods prohibited from export or exempted from export duty, their transportation may be authorized by normal circulation permits.

Article 33. Transported commodities from abroad under the transit regime through the Lao People's Democratic Republic to a third country shall be accompanied with guaranteed transit goods permits issued by the customs at the point of departure and will be exempted form customs duties according to specific regulations. Owners or transporters of transit goods shall present guaranteed transit goods transport permits to customs officers along used routes and the border customs at the point of export.

The guarantee agreement contained in the guaranteed transit goods transport documents shall expire only when certified by border customs officers at the point of export that such goods have exited from the Lao People's Democratic Republic. Guarantee
Agreements shall be terminated specifically for the actual quantities and types of goods exported from the Lao territory only.

Chapter 3
Warehouse System

Article 34. The warehouse regime is a regime for the storage of locally produced or import goods which are to be exported by business operators or locally consumed, for a definite period of time with customs duty suspension and under the control of the customs authorities pending the implementation of the customs regime.

Warehouses included in the warehouse regime includes 4 categories:
- Real warehouse;
- Special warehouse;
- Fictive warehouse;
- Industrial warehouse;
-
Businessmen shall be authorized to use the warehouse regime according to conditions outlined by Government.

The Minister of Finance shall authorize the establishment of warehouse regime, and outline regulations on warehouse construction sites, their organization, the use, the supervision and the determination of the storage period for each type of goods.

Article 35. Real warehouses store general goods pending their removal from the warehouse according to the customs regime and under the supervision of the customs authorities.

Article 36. Special warehouses store the following types of goods
- Live animals;
- Goods under restriction of entry or under special supervision;
- Goods hazardous to health, lacking sanitation or hazardous to the environment.
In addition to the above mentioned goods, the Minister of Finance will determine separately other types of goods.

Article 37. Fictive warehouses are duty free shops under contract for sale of goods to outgoing travelers and according to specific regulations.
Article 38. Industrial warehouses store goods imported by enterprises for assembly, improvement, processing or repair and then re-exported within a definite period of time.

Article 38. Industrial warehouses store goods imported by enterprises for assembly, improvement, processing or repair and then re-exported within a definite period of time

Article 39. Goods restricted from entry and transit through the Lao People's Democratic Republic may be stored in any above warehouse but shall be exported within a definite period of time.

Customs authorities are entitled to prohibit the storage of certain goods in warehoused if such commodities are seen as detrimental to health, the environment and warehouse operations.

Article 40. Customs officers are entitled to control the inventory and goods in warehouses at any time if deemed necessary.

In case it is proven by custom officers that stored goods are missing or do not confirm to the initial declaration, the warehouse owner shall be responsible for the payment of duty at the applicable rate on the day the loss is observed and for other liabilities according to the laws and regulations.

Article 41. The removal of goods from one warehouse to another, to the custom-house or re-exported shall be accompanied with a guaranteed goods removal permit.

Article 42. In case it is required to remove goods stored in warehouse under duty holiday regime for domestic consumption, the owner of such goods shall pay duties at the applicable rate on the day the detailed duty declaration for consumption is registered.

Chapter 4
Temporary Importation and Exportation

Article 43. Goods classified under the regime of temporary importation include:

- Imported goods for any purpose then re-exported in the original quantity and condition;
- Imported goods for processing, assembly into finished products, improvement and repair, then re-exported;
- Goods classified under the temporary import regime will be exempted from duty at their importation and re-exportation according to outlined regulations and principles.

Article 44. For the temporary importation of goods, importers shall sign a contract in the temporary import declaration whereas such goods shall be re-exported or entered in the warehouse system or in the duty free zone pending their re-export and shall fully comply to the conditions provided by the law and regulations on temporary importation.

Article 45. Customs duty shall be paid for remains from processing, improved or finished products not corresponding to the required conditions for re-export which shall be used or sold within the country.

Article 46. The customs authorities shall outline conditions for temporary export of goods for improvement or addition. At the re-import, customs duty shall be paid on the basis of the improvement's value.

Chapter 5
Temporary Import and Export of Personal Belongings

Article 47. The people temporarily entering the Lao People's Democratic Republic with non-prohibited personal belongings shall be exempted from customs duties provided such goods are re-exported within the authorized period of stay in the Lao People's Democratic Republic as provided in guaranteed declarations. Details will be separately provided.

Article 48. The people temporarily exiting from the Lao People's Democratic Republic may temporarily take their personal belongings without paying customs duties.
For temporary export, exporters shall declare such personal belongings in forms provided by the customs authorities.

Article 49. Regarding certain prohibited personal belongings, exporters shall be authorized to export before their departure only when approved by the authoritative state agencies and as a third person guarantees that such belongings shall return in their original number and conditions.

In case exported belongings are not re-imported, exporters or guarantors shall be liable the laws.

Chapter 6
Specific Regime for Certain Types of Goods

Article 50. The customs radius is the customs officers' control area which covers up to thirty kilometers from the border into the customs territory. However, in view of ensuring control and the restriction of illicit trafficking, the customs radius may be extended as approved by the Government.

Any circulation of goods within the customs radius shall be accompanied with goods circulation permits issued by the customs authorities.

Article 51. Within the customs radius, as well within the customs territory, no family shall be allowed to store, retain or possess goods in excess to the family's need, except if a family id in possession of documents certifying their lawful acquisition.