You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

June 17, 2025

New Trade Inspection Implementation Decision in Laos

Subscribe to Updates

On January 9, 2025, the Lao official gazette published the newly amended Decision on Trade Inspection Implementation No. 0019/MOIC, dated January 6, 2025.

This decision aims to establish principles and rules for trade officers to inspect, fine, and take measures against violators of trade laws and their related regulations on business competition, business operations, and intellectual property rights to protect consumers and business operators in Laos.

Changes in Trade Inspection Procedures

Previously, trade inspection officers, operating independently under the central Ministry of Industry and Commerce (MOIC) or the provincial-level Department of Industry and Commerce (DOIC), were responsible for administrative raid actions focusing exclusively on intellectual property issues. However, following the enactment of Decision No. 0019/MOIC, trade inspection officers will now be grouped into the Trade Officers Unit, which will also include business competition officers and consumer protection officers. This unit will conduct and participate in raids, considering not only intellectual property laws but also competition and consumer protection laws when imposing penalties on infringers.

Trade Inspection Authority Levels

Trade inspection implementation is overseen by authorities at three levels:

  • Central level: Department of Business Competition and Trade Inspection, MOIC. The MOIC handles trade inspection work covering all provinces in Laos.
  • Provincial level: DOIC offices in provinces and Vientiane handle trade inspections covering two or more districts.
  • District level: Office of the Industry and Commerce offices in districts.

Violations

Individuals, legal entities, and organizations violating the newly amended trade inspection decision, the Decree on Trade Inspection, or other related regulations will be educated about the issue, warned, disciplined (for government servants), fined, subject to compensation for damage incurred, or punished by the relevant laws, depending on the gravity of the violation.

Trade Violations

Violations of trade laws and regulations concerning business operations will result in fines and additional measures. Examples include:

  • Failure to display product prices: Fines ranging from LAK 500,000 (approx. USD 25) to LAK 1,000,000 (approx. USD 50) per item.
  • False advertising: Fines ranging from LAK 500,000 to LAK 5,000,000 (approx. USD 250) per item, with possible seizure or destruction of products.
  • Defamatory advertising: Fines ranging from LAK 500,000 to LAK 1,000,000 if a complaint is filed.
  • Incorrect labeling or failure to label in Lao language: Fines ranging from LAK 500,000 to LAK 5,000,000 per item, with possible seizure or confiscation of products.
  • Counterfeiting labels: Fines ranging from LAK 200,000 (approx. USD 10) to LAK 2,000,000 (approx. USD 100) per instance, with confiscation of products and criminal prosecution.

Intellectual Property Violations

Minor offenses in violation of intellectual property laws will result in fines of 1% of the value of the damage incurred. Intentional violations will result in fines of 5% of the damage incurred per violation.

False Business Operations

Violations of the Enterprise Law No. 33/NA, dated December 29, 2022, will result in educational measures, warnings, disciplinary actions, fines, civil damages, or criminal penalties. Conducting business without a permit will result in similar measures.

Unauthorized Trading

Illegal trading of products will be punished or fined based on the value of the goods and compliance with ensuing legal obligations. Examples include:

  • Import-export goods processed at incorrect checkpoints: Remedial education and warnings for goods below LAK 5 million, fines of 5% for goods valued between LAK 5 million and LAK 10 million, and fines of 10% for goods above LAK 10 million.
  • Violations of the import and export regulations: Fines of 30% for the first offense, 50% for the second offense, and 70% for illegal import or export of goods.

Compliance

Businesses need to ensure their compliance with the newly amended trade inspection decision and all related laws and regulations, as violating a trade regulation, operating a business without an Enterprise Registration Certificate, or conducting a business for illicit purposes involving illegal goods may result in civil or criminal proceedings, depending on the violation and applicable regulations—in addition to the fines and measures outlined above.

Related Professionals

Practices

Antitrust and Competition

Customs and International Trade

Intellectual Property

Location

RELATED INSIGHTS​ 

September 24, 2025
Online shopping in Thailand is more accessible than ever, with global platforms, local social media shops, and entertainment-driven social commerce enabling instant purchases. However, this convenience comes with rising concerns over digital intellectual property (IP) infringement, including counterfeit goods, pirated content, and unauthorized brand usage. At first glance, online platforms appear to offer quick solutions. Most major e-commerce sites, social media channels, and social commerce platforms provide “notice and takedown” systems, where IP owners can file complaints and request the removal of listings that infringe IP rights, such as trademarks and copyrights. These tools are certainly useful, as seeing a fake product vanish from a platform feels like progress. But the reality is less reassuring. The counterfeit goods themselves remain in warehouses, markets, or shops, ready to be resold. Sellers whose accounts are taken down often return within days under new names or accounts. In other words, a takedown is like cutting weeds without pulling out the roots: they always grow back. While notice and takedown tools are widely available and can be managed internally by most IP owners, their impact is often short-lived. IP owners seeking more effective, lasting protection need to take a more strategic and multilayered approach. The same applies to online piracy. Unauthorized streaming websites that offer free access to movies, TV shows, or sports broadcasts have become widespread in Thailand. To combat this, rightsholders can request website blocking under the Computer Crime Act, through the Ministry of Digital Economy and Society and the courts. Once requests are approved, internet service providers are ordered to block access to infringing sites. Blocking orders can be effective in disrupting large-scale piracy operations, but they also face limitations—pirate sites frequently reappear under new domains. Strategic Protection Whether the infringing material is physical counterfeit goods or intangible streaming content,
Read More
September 4, 2025
On June 6, 2025, the Superior People’s Court in Hanoi overturned a non-use cancellation decision by the Intellectual Property Office of Vietnam, a rare and impactful occurrence. In a ruling that may help clarify the enforcement of Vietnam’s IP Law, the court held that valid trademark use can be established through commercial arrangements where the brand owner maintains actual control over the use of the mark, and is not confined to relationships governed by a so-called “formal license agreement. Background: Cross-Border Use, Local Challenge A Singapore company owns a well-known brand of consumer products that has gained recognition across Southeast Asia. In recent years, the brand has been targeted by several unauthorized trademark filings in Vietnam. In one such instance, a local Vietnamese trading company—previously linked to the production and export of counterfeit goods to neighboring countries—filed a non-use cancellation against the Singapore company’s mark and sought to register it under its own name. If the cancellation had been upheld, it would have enabled a complete hijacking of the brand. The IP holder operates in Vietnam through a structured cross-border supply chain. Under an agreement between two related foreign entities, one of which managed regional operations, production orders were placed through a designated Vietnamese company. While the Vietnamese manufacturer was not a party to the agreement, its role in using the mark was recognized and governed by internal and commercial documentation. The Vietnamese manufacturer lawfully obtained the necessary permits, regulatory approvals, and customs clearances for producing the goods in Vietnam. These activities were supported by banking records and internal communications, evidencing active, continuous use of the mark in Vietnam. However, the IP Office concluded that this use did not meet the statutory criteria because the Vietnamese manufacturer did not have a direct license agreement with the brand owner, as
Read More
September 2, 2025
Thailand’s Office of the Consumer Protection Board (OCPB) has initiated a sweeping regulatory review of licensed direct sale and direct marketing businesses in Thailand and is in the process of notifying business operators to submit their annual business report and financial statement to the OCPB as part of their postlicensing obligations. This move marks a significant escalation in the government’s efforts to enforce compliance and transparency in the sector, which has faced growing scrutiny in recent years. Key Regulatory Considerations All businesses holding a direct sales or direct marketing license are required to submit their audited financial statement along with their business operation report to the OCPB within 60 days from the end of their fiscal year (extendable for up to 30 days by request, if necessary). The OCPB is currently conducting license audits as part of its enforcement duties. The office aims to complete audits for at least 90% of the 2,983 registered businesses that have obtained their license since 2022. This includes a review of the business conduct of the license holder. New license applications are also under scrutiny. Applicants are currently being subjected to background checks, and the OCPB has signaled a more rigorous vetting process moving forward. Impact of Noncompliance Failure to comply with these reporting obligations may result in escalating enforcement actions, including: Official notice to rectify noncompliance within a specified timeframe. Revocation of business registration, if the operator fails to respond. Revocation of business registration could result in a five-year prohibition on reapplying for a direct sales or direct marketing license following the revocation. The OCPB has already initiated outreach efforts, including SMS and email notifications, and has hosted seminars to raise awareness of these obligations. These measures are part of a broader initiative to enhance transparency and consumer trust in the sector. Businesses operating in the direct selling and
Read More
August 25, 2025
Indonesia’s current regulations on franchises, as stipulated under Government Regulation No. 35/2024 on Franchising and its implementing regulation, Ministry of Trade (MOT) Regulation No. 71/2019 regarding Implementation of Franchising, highlight fundamental changes in franchise registration. These changes have introduced additional complexities and challenges in the franchise registration procedure, making it more difficult for franchise owners to navigate the process. New procedure Franchise applications are still submitted through the Online Single Submission (OSS) portal of the Capital Investment Coordinating Board (BKPM). However, the new procedure requires each applicant, including foreign franchisors, to have an OSS account and a business registration number (NIB) issued by BKPM. An application for franchise registration must be submitted under the applicant’s own account—submissions can no longer be made through the account of a consultant. Once a franchise application is submitted, the authority will distribute the submission to the MOT—the authorized ministry for franchise registration. Any notification or decision upon the registration made by the MOT will be available in the OSS system. Applicants should regularly monitor the status of the franchise application because no notifications will be sent to applicants to alert them of any deficiency. Here is the summary of the new procedure for franchisors: Notable Requirements The disclosure document, or prospectus, is the key focus for the MOT in examining a franchise registration for a franchisor. This document is subject to thorough scrutiny by the MOT to ensure that all mandatory information meets the requirements set in the franchise regulations. The current regulations specifically require that the mandatory clause “business system” in the prospectus cover operational standards and procedures, which should include human resource management, administration, operational management, standard operating methods, business location selection, business premises design, employee requirements, and marketing strategies. Other clauses that are equally important to pay attention to are:
Read More