LAOS
Since April 2021
Pillar Foreign Direct Investment in sectors relevant to digital trade |
Sub-pillar Maximum foreign equity share
Decree on E-Commerce No. 296/GOV
Until 2020, there were no statutory limits on foreign ownership or control of commercial enterprises for digital-related products and services. However, in practice, many companies have been seeking a local partner to enter the market. In 2021, foreign investment in e-commerce is subject to a limit of 90% of the entity’s shares, and a minimum registered capital of LAK 10 billion (approximately USD 1 million).
Coverage E-commerce
Sources
- https://www.state.gov/reports/2018-investment-climate-statements/laos/
- https://www.oecd-ilibrary.org/docserver/9789264276055-8-en.pdf
- https://www.lexology.com/library/detail.aspx?g=a57d6c41-d46b-4379-b007-5d66399108df
- https://www.zicolaw.com/resources/alerts/laos-adopts-new-e-commerce-regulation/
- https://jclao.com/laos-issues-e-commerce-regulations/
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LAOS
Since November 2017
Since February 2019
Since February 2019
Pillar Public procurement of ICT goods and online services |
Sub-pillar Other limitations on foreign participation in public procurement
Law No. 30/NA on Public Procurement, 2017
Instruction No. 0477/MOF on Implementation of Law on Public Procurement
Instruction No. 0477/MOF on Implementation of Law on Public Procurement
Art. 45 of Law No. 30/NA provides that contractors, suppliers or consultants meeting all conditions must be given domestic preference and considered to be awarded the contracts. Clause 14 of Instruction No. 0477/MOF clarifies that domestic preference should apply for international open bidding (international competitive bidding) only and such given domestic preference must be stipulated in the bidding documents though following conditions:
- For works and/or maintenance: if a local bidder’s bid price is not exceed 7.5% of an international bidders bid price, the local bidder must be considered as the winning bidder for works, and/or maintenance.
- Supply of goods: if as a result of a comparison, the lowest evaluated bid is a bid from Group C (bids offering goods manufactured abroad and will be directly imported), all bids from Group C must be further compared with the lowest evaluated bid from Group A (bids offering domestically manufactured goods) after adding to the evaluated price of goods offered in each bid from Group C, for the purpose of this further comparison only, an amount not to exceed 15% of the respective bid price. The lowest evaluated price from the final comparison must be selected for the award.
- For works and/or maintenance: if a local bidder’s bid price is not exceed 7.5% of an international bidders bid price, the local bidder must be considered as the winning bidder for works, and/or maintenance.
- Supply of goods: if as a result of a comparison, the lowest evaluated bid is a bid from Group C (bids offering goods manufactured abroad and will be directly imported), all bids from Group C must be further compared with the lowest evaluated bid from Group A (bids offering domestically manufactured goods) after adding to the evaluated price of goods offered in each bid from Group C, for the purpose of this further comparison only, an amount not to exceed 15% of the respective bid price. The lowest evaluated price from the final comparison must be selected for the award.
Coverage Horizontal
Sources
- http://ppmd.mof.gov.la/storage/1632981237.Laos%20PDR%20Public%20Procurement%20Law_English%5B23%5D.pdf
- https://www.mof.gov.la/wp-content/uploads/2020/06/Instruction-of-law-on-public-procurement_Eng-1.pdf
- https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/WT/TPR/S394R1.pdf&Open=True
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LAOS
N/A
Pillar Public procurement of ICT goods and online services |
Sub-pillar Signatory of the WTO Agreement on Government Procurement (GPA) with coverage of the most relevant services sectors (CPC752, 754, 84)
Lack of participation in the WTO Agreement on Government Procurement (GPA)
Laos is not a party to the World Trade Organization (WTO) Agreement on Government Procurement (GPA) nor does it have observer status.
Coverage Horizontal
LAOS
Since January 2004
Pillar Public procurement of ICT goods and online services |
Sub-pillar Exclusion from public procurement
Decree of the Prime Minister on Government Procurement of Goods, Construction, Maintenance and Services No. 03/PM
Art. 9 of the Decree of the Prime Minister on Government Procurement of Goods, Construction, Maintenance and Services No. 03/PM stipulates that the use of the national budget for the procurement of foreign goods is not authorized if such goods can be produced locally at equal quality. The regulation also states that local firms are given priority in public procurements of goods, works, and services financed in full with domestic funds. Local firms that are not affiliated with foreign firms and that supply goods, works, and services with equal quality with local firms, are given preferential rights in competitive biddings.
Coverage Horizontal
LAOS
Since January 2022
Since January 2022
Since January 2022
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Information Technology Agreement (ITA)
ITA Expansion Agreement (ITA II)
ITA Expansion Agreement (ITA II)
Lao PDR is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996 and its 2015 expansion (ITA II).
Coverage ICT goods
LAOS
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Sub-pillar Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
1.34%
Coverage rate of zero-tariffs on ICT goods (%)
55.93%
Coverage: Digital goods
KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Adoption of UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Kuwait has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
KUWAIT
Since 2014
Pillar Online sales and transactions |
Sub-pillar Adoption of UNCITRAL Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Kuwait has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Framework for consumer protection applicable to online commerce
Law No. 20 of 2014 regarding Electronic Transactions
Kuwait has a legal framework that applies consumer protection to online transactions. Art. 2 of the Law No. 20 of 2014 regarding Electronic Transactions provides for the scope of its application which includes electronic records, messages, information, documents and signatures related to civil, commercial and administrative transactions and to any disputes arising from or in connection with their use, unless the parties agreed otherwise, or another law applies.
Coverage Horizontal
KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of signature of the UN Convention on the Use of Electronic Communications in International Contracts
Kuwait has not signed the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Restrictions on domain names
Domain Registration Policy
Under the Domain Registration Policy, the ".com.KW" domain name selected must match a part of the registered company name, or alternatively a registered trademark. The trademark can be from any country, and does not need to be valid for Kuwait. As is the case with other third-level domains (domain registrations are at the third level beneath these names: "com.KW", "net.KW", "org.KW"), a local administrative contact is required. If a company holds a matching trademark from anywhere in the world, or order one through a fast-track trademark service, only a local administrative contact is required.
Coverage Horizontal
KUWAIT
Since October 1980, entry into force in February 1981
Since June 2013
Since June 2013
Pillar Online sales and transactions |
Sub-pillar Local presence requirement for digital services providers
Commercial Law No. 68 of 1980
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
Law No. 116 of 2013 Regarding the Promotion of Direct Investment in the State of Kuwait
Arts. 23 and 24 of Law No. 68 require foreign entities conducting business in Kuwait to do so either through a local agent or a Kuwaiti partner, which is typically facilitated through the establishment of a Kuwaiti company with Kuwaiti participants owning at least 51% of the share capital. An exception to these restrictions on foreign ownership is when the relevant Kuwaiti company is established and licensed under the Law No. 116 (Art. 12), which allows for increased levels of foreign ownership (up to 100%).
Coverage Horizontal
Sources
- https://www.wipo.int/wipolex/en/text/196499
- https://e.kdipa.gov.kw/main/law1162013.pdf
- https://www.lexology.com/library/detail.aspx?g=2a1ed309-b58e-4b0e-9766-da6ecb84aa65
- https://www.state.gov/reports/2022-investment-climate-statements/kuwait/
- https://kdipa.gov.kw/wp-content/uploads/2021/03/E012016.pdf
- https://oxfordbusinessgroup.com/reports/kuwait/2022-report/legal-framework/doing-business-successful-implementation-of-the-foreign-direct-investment-law-serves-as-a-model-for-the-wider-gcc-region/
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KUWAIT
Reported in 2021
Pillar Online sales and transactions |
Sub-pillar Restrictions on online payments
Resolution No. 44/430 of 2018 of the Central Bank of Kuwait
It is reported that the Resolution No. 44/430 of 2018 of the Central Bank of Kuwait issued in 2017 is applicable to any business that intends to engage in the activity of electronic payments and settlement systems such as e-commerce and fintech businesses. Such businesses must obtain an electronic payment gateway from Service Providers (e.g., local bank) and register as an agent with the service providers. Businesses cannot practice electronic payments and settlement systems without the registration in the Central Bank of Kuwait. In order for the registration to be successful, a service provider must retain KD 1 million (approx 3.3 Million USD) as a minimum capital and an Agent KD 20,000 (approx. 66.000 USD). However, the regulatory text has not been found.
Coverage e-commerce, fintech
KUWAIT
N/A
Pillar Online sales and transactions |
Sub-pillar Threshold for ‘De Minimis’ rule
Lack of de minimis threshold
Kuwait does not implement any de minimis threshold, which is the minimum value of goods below which customs do not charge duties.
Coverage Horizontal
KUWAIT
Since November 2007
Pillar Technical standards applied to ICT goods and online services |
Sub-pillar Self-certification for product safety
Gulf Technical Regulation for Low Voltage Electrical Equipment and Appliances – BD-142004-01
According to the GSO Technical Regulation for Low Voltage Electrical Equipment and Appliances – BD-142004-01, which includes an amendment and an update of the first edition, number (BD07070503) was implemented in 2007. Electrical appliances designed to be used in certain rated voltage range must be sold bearing G mark after being certified by the GCC Notified Body.
Products that fall under List 1 under the Regulation are low-risk; thus a self declaration form prepared by the manufacturer can be made affixing the “G” before placing the product on the market. Products that fall under List 2 are higher risk electrical products which will undergo mandatory Type testing and review of the product's Technical File to verify conformity before authorization is granted to affix the “G” mark before placing the product onto the market.
However, for List 2 products, manufacturers must choose a single Notified Body (NB) entity, to examine the technical design of a product and verify that the technical design of the product meets the requirements of the applicable Gulf Technical Regulations and for the issuance of an evaluation report with a Gulf Type Examination certificate and shall be issued certificate from the NB.
Products that fall under List 1 under the Regulation are low-risk; thus a self declaration form prepared by the manufacturer can be made affixing the “G” before placing the product on the market. Products that fall under List 2 are higher risk electrical products which will undergo mandatory Type testing and review of the product's Technical File to verify conformity before authorization is granted to affix the “G” mark before placing the product onto the market.
However, for List 2 products, manufacturers must choose a single Notified Body (NB) entity, to examine the technical design of a product and verify that the technical design of the product meets the requirements of the applicable Gulf Technical Regulations and for the issuance of an evaluation report with a Gulf Type Examination certificate and shall be issued certificate from the NB.
Coverage Electrical goods