(KPL) The government has announced a temporary halt on the import of light motor vehicles, including SUVs, sedans, vans, and pickup trucks valued at over US$50,000. This measure, issued by the Ministry of Industry and Commerce, aims to reduce importation and address issues related to foreign currency shortages, trade deficits, and substandard vehicles. Additionally, this initiative seeks to curb inflation.

The announcement specifies that the suspension applies to light motor vehicles using fossil fuels, hybrid engines (combining fossil fuel with electric power or renewable energies), and those with a CIF (Cost, Insurance, and Freight) value exceeding US$50,000. Companies without proper authorization or delegation from parent companies to import these vehicles will not be permitted to do so until they obtain documents proving compliance with technical and quality standards. Companies that have already ordered light motor vehicles worth over US$50,000 and have proof of advance payment through a commercial bank within Laos before August 6, 2024, must notify the Department of Foreign Trade, Ministry of Industry and Commerce, to receive exemption rights from this suspension. Orders placed after August 6, 2024, will not be exempt from this policy.

Light motor vehicles worth more than US$50,000 imported for essential work or related to international obligations, such as those for government use, embassies, or international organizations, can be allowed only with government approval.

The Ministry of Industry and Commerce will coordinate with the Ministry of Finance, Ministry of Public Works and Transport, the Lao Motor Vehicle Association, and other relevant sectors to review and improve the import reduction measures in line with international obligations and current conditions. They will also develop a systematic plan for the import of motor vehicles for 2025 to ensure balanced foreign payments.

This temporary suspension will be effective from August 20 to December 31, 2024, or until further notice.

KPL