Notification of the Ministry of Industry and Commerce No. 1940/MOIC.DIMEX on Procedures to issue import and export license for Timber and timber products

1.1. Import license for raw materials (timber) In case of domestic raw materials (timber) not being sufficient to supply demand according to the business-production plan and domestic utilization and exportation, a company/wood processing factory and furniture makers can apply to import raw material from abroad on the basis that such raw materials shall have a certificate of origin.

1.2. Procedure for the importation of raw materials (timber)

1.2.1. Company/wood processing factory and furniture makers who would like to import raw materials (timber) shall file the following documents: letter of intent, copy of enterprise registration allowing to exercise of timber business and copy of tax registration, export license from export country, certificate of origin, invoice, copy of log list and sale- purchase contract; and submit it to the Department of Import and Export, Ministry of Industry and Commerce to consider and propose to the Government office.

1.2.2. After the Government has considered and agreed to allow the importation, the Department of Import and Export, Ministry of Industry and Commerce will issue an import license according to the regulations.

1.3. Procedure for the exportation of round wood (logs), sawed wood (processed), semi- finished products, stumps and tuber.

1.3.1. Company/wood processing factories and furniture makers that would like to export round wood (logs), sawed wood (processed), semi-finished products, stumps and tuber shall file the following documents: letter of intent, copy of enterprise registration allowing to exercise of timber business and copy of tax registration, copy of log list and legally registered sale-purchase contract and timber payment receipt; and submit them to Department of Import and Export, Ministry of Industry and Commerce to consider and propose to the Government office.

1.3.2. After the Government has considered and agreed to allow the exportation as a special case, the Department of Import and Export, Ministry of Industry and Commerce will 1 forward its approval to Department of Industry and Commerce at Provincial, Capital to issue an export monitoring document.

1.4. The exportation of wooden products Wooden products can be exported directly without a request prior to exportation. However, such products shall conform to the conditions and standards set out in Ministerial Decision no.1415/MOIC.DOI, dated 28 August 2008 on Form and Size of wooden products. Documents to request permission for exportation are the following: ™ Copy of enterprise registration allowing exercise of timber business and copy of tax registration. ™ Customs declaration form (if made through other province, shall file the document in according to the instructions of Finance sector) ™ Invoice ™ Packing list ™ Certificate to proof of the standard and size of wooden products. 2. Responsibility of the Department of Industry and Commerce at Provincial, Capital

2.1. Coordinate with Agriculture and Forestry Sector to inspect the log list at the second log yard (landing II) and receive the actual timber from Agriculture and Forestry sector with the official signatures to the handling memorandum from both parties.

2.2. Conduct sale-purchase contract for logs, stumps and tubers with the company/wood processing factory that had been restructured and is a member of the Wood Processing Industry Association at national or/and provincial level.

2.3. Manage and inspect the sawmills, wood processing factories, furniture factories, storage facilities for wooden products, factories that use wood as the energy source and other places as necessary as mentioned in the Law on processing industry, in collaboration with other relevant agencies..

2.4. Manage and coordinate with Agriculture and Forestry sector to strictly inspect the input of raw materials for the production and output of the products.

2.5. Manage and issue export monitoring documents for round wood (logs), sawed wood (processed), semi-finished products, stumps and tuber. 3. Duration of the consideration A duly completed submitted application shall immediately be taken into consideration. Unless it is necessary to verify it again, the procedure should not take longer than 30 working days, starting from the date of submission. 4. Validation of license and renew of the license

4.1. Import and export licenses are valid for 90 days and shall expire automatically if such period has elapsed.

4.2. In the case of lost, misused or partially used licenses during the time given, the importer or exporter must file a request to renew the validity of such licenses by attaching a report or certification letter from the Department of Industry and Commerce at Provincial, Capital to the Department of Import and Export to cancel the old license and issue a new one.

4.3. The renewal of a license may be made and will be valid for 60 days each time. If the above conditions cannot be implemented, as disclaimer shall be automatically considered. 5. Inspection of the movement and exportation The Industry and Commerce sector through trade inspection officers shall coordinate with the relevant agencies to monitor the movement, exportation of timber and wooden products on transportation routes, wood processing factories, storage and other places where necessary. If informed by a reliable source, trade inspection officers shall coordinate with the relevant agencies to inspect immediately and act according to the rights and authority as given by the Laws and regulations. 6. This notification shall enter into force from the date of signature and replace notification no.1601/MOIC.DIMEX, dated 26 September 2008. Any notifications that were previously promulgated by the Ministry of Industry and Commerce which conflict with this notification shall be voided. 2 Minister Of the Ministry of Industry and Commerce, [Signed and sealed] Dr. Nam Viyaketh Attached to: − Ministers of MOIC − Government office − Government Inspection Agency − Customs Department, Taxation Department, State property Department, MoF − Department of Forestry, MAF − Relevant Departments of MOIC − Provincial, Capital Administration Office − Lao National Chamber of Commerce and Industry − National Timber Processing Industry Association − Lao Furniture Association 3