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June 17, 2025

New Trade Inspection Implementation Decision in Laos

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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

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