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Trade Process Analysis Database (TPAD)
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Conclude contract and trade terms
Case Study
Title:
Import of Animal Feed from Thailand to Lao PDR, 2014
Corridors and Routes:
Nongkhai - Vientiane
Trade Product:
Animal feed
Trade Type:
Import
Process Analysis:
Import to Lao PDR
Exporting Country:
Thailand
Importing Country:
Lao People's Democratic Republic
Category:
Contract between seller and buyer
Country and Procedure Description:
Buy/Conclude contract and trade terms
(Import to LAO from THA/Animal Feed))
Related Rules, Laws and Regulations:
-Decree on Import and Export of Goods No. 114/GoL; Vientiance Capital, date 6 April 2011 -Notification on prohibited goods on import or export, No.0973/ MoIC.DIMEX, Vientiane Capital, 25 May 2011; Dr. Nam Viyaket, Minister of Ministry of Industry and Commerce -Quotation for the import of animal feed price: Purchase order and Performa Invoice
Actors and Participants:
-Importer (animal feed)
-Exporter or representative in Vientiane
Actors and Participants:
-Importer (animal feed)
-Exporter or representative in Vientiane
Input Criteria to Enter or Begin the Business Process:
-Businesses in Lao are required to hold the following legal documents prior to import and export of their goods to and from Laos: (i) A business license (ii) Official customs certification, and (iii) Import-export license - The import process starts with the negotiation between buyer and seller on goods trade. To this end, the seller proposes a quotation to the potential buyer. The quotation includes, but not limited to: (i) Unit price and total amount, (ii) Product specification, (iii) Means of delivery of goods, (iv) Expected time of delivery of goods, (v) Commercial contract that includes all the terms of payment after receiving goods and other needed trade transaction
Activities and Associated Documentary Requirements:
1. Conclude Import (buying) contract and trade terms 2. Quote price and terms of trade 3. Determine if quotation is acceptable 4. Confirm intention to purchase 5. Prepare the shipment/delivery of goods and submit Performa invoice 6. Receive Performa Invoice
Output Criteria to Exit the Business Process:
-Importer and exporter have concluded trade contract and terms
Activity Diagrams:
Number of Required Documents:
3
Minimum Required Time:
1.3
Maximum Required Time:
3
Average Required Time:
2
Minimum Cost:
Maximum Cost:
3
Average Cost:
