Customs payments on freight rise steeply at Boten border crossing

The amount of revenue collected from tariffs/fees paid at the Boten International Customs Checkpoint on the Laos-China border exceeded 661.5 billion kip in 2022, which was 28.33 percent more than the target figure.
Head of the Boten International Customs Checkpoint, Mr Vilakone Kettavong, recently attributed the increase in revenue to the growing volume of imported and exported goods crossing the border between Laos and China.

More freight passes through the Boten International Customs Checkpoint in Luang Namtha province.                                                                  --Photo Ministry of Finance

The inauguration of the Laos-China Railway in 2021 resulted in an upswing in trade, not only between Laos and China, but also between other Asean countries and China.
Mr Vilakone said the main categories of goods imported last year included gas, engine oil, vehicles and spare parts, construction and electrical equipment, and other items needed to increase the volume of goods exported to third countries.
Last year, more than 1.28 million tonnes of goods were shipped between Thailand and China via Laos, according to a Lao Trade Portal report.
The value of goods traded between the two countries through Laos exceeded US$2.39 billion last year, an increase of 44.4 percent compared to the 2021 figure of US$1.66 billion.
The volume of goods transiting through Laos is rising substantially thanks to the country’s improved land links.
One of the factors driving the increase in freight passing through Boten is the introduction of modern systems such as ASYCUDA, SMART Tax, Scanner, EasyPASS, and the Lao National Single Window system.
When the Laos-China Railway first opened in December 2021, trains carrying freight travelled between Laos and China three times a day, but this number has now increased to 10 a day. With China reopening to the outside world, experts believe more freight will be shipped across Laos’ borders and that thousands of Chinese tourists will visit Laos using the Laos-China Railway.
In 2021, only 362 billion kip in tariffs/fees was collected at the Boten   International Customs Checkpoint, but this amount surged to 661.5 billion kip in 2022, exceeding the target figure of 515.5 billion kip.
The main items exported were agricultural produce, potassium salt, rubber, and iron ore. Imported goods included items in transit through Laos between China and Thailand, mainly consisting of vegetables, fresh fruit and frozen food.
The value of Thai goods imported and exported through Laos to and from China in 2022 rose to US$1,339 million, an increase of about 5 percent compared to 2021. Meanwhile the value of goods imported and exported from and to China through Laos to Thailand soared to US$1,058 million - an increase of 175 percent.
Meanwhile, customs officials have pledged to do more to plug loopholes that enable financial leaks and other forms of tax/tariff invasion as a means to help the government earn more income.

By Somsack Pongkhao
 (Latest Update February 1, 2023)