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Flows of Goods and Services
Laos is moving forward with improvements to the flow of goods and services into and out of the country, yet enormous challenges remain. A new Customs Law was enacted on May 20, 2005. Though promising in scope, the ultimate success of this law will depend upon the language and implementation of the decrees that are now being drafted and negotiated by the Laos Customs Agency and other authorities. For legislative and regulatory reforms to be properly implemented, Customs must reorganize into a form that permits strong central control of revenues, employees and ports. Until centralization is realized, little more can be accomplished to enhance trade facilitation.
Furthermore, at this time, the trade community in Laos is generally not well served by either the public or private supporting institutions in Laos. Many problems arise because of lack of capacity of personnel in sectors, complicated and burdensome procedures, and the unavailability of quality transport and Customs clearance professionals. The Government has taken steps in recent years to address these issues and simplify procedures with some success. Strategic plans have been developed to strengthen the transport industry and to regulate the Customs brokers, but these plans often lack proper implementation at the provincial level where regulatory power is entrenched. Nonetheless, the trade community is slowly gaining some collective power to influence change in the service institutions. Transport costs have been reduced but still exceed those of neighboring countries. Significant reforms in the transport arena are long overdue.
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