Shipping from China to Laos | Sea, Air & Rail Freight Rates

Ways to Shipping from China to Laos

When shipping from China to Laos by road, you have two primary entry points: the Lantouy International Checkpoint and the Boten Border Crossing. Both countries boast well-maintained roads, with ongoing improvements in Vietnam.

Why Choose Road Freight?

Opting for road freight can be advantageous compared to rail freight. It typically offers a transit time that is cut in half, and depending on the type of goods being transported, it can also be more cost-effective. Laos has developed a strong road infrastructure, ensuring that all cities are interconnected by a reliable network of roads. If your goods originate from eastern China, they will pass through Vietnam before entering Laos. Conversely, shipments from central or western China will cross directly into Laos.

We recommend comparing rates between road and rail freight, as similar pricing can lead to significantly reduced transit times.

Average Transit Times by Truck

By choosing Hong Ocean for your logistics needs, you can benefit from efficient road freight solutions that ensure timely delivery while navigating the complexities of cross-border shipping.

Railway Freight from China to Laos

Rail freight from China to Laos is an efficient and cost-effective option for transporting goods overland. With the establishment of the China-Laos Railway, which connects Kunming in Yunnan Province to Vientiane, the capital of Laos, businesses can enjoy faster transit times compared to traditional shipping methods. This railway network supports both containerized cargo and bulk shipments, making it ideal for a variety of products.

Advantages of Rail Freight

• Cost Efficiency: Rail freight often offers lower costs per ton compared to air freight.
• Environmentally Friendly: Rail transport generates less CO2 emissions than road or air transport.
• Reliable Transit Times: Scheduled services ensure timely deliveries, making it easier for businesses to manage inventory.

Air Freight from China to Laos

Air freight from China to Laos is the fastest shipping method, ideal for high-value or time-sensitive goods. Major airports in China, such as Beijing Capital International Airport and Shanghai Pudong International Airport, connect to Vientiane’s Wattay International Airport.

Key Benefits of Air Freight

• Speed: Air freight can reduce shipping times to just a few days.
• Safety: Reduced handling minimizes the risk of damage or loss.
• Global Reach: Air freight allows for easy access to markets worldwide.

Sea Freight from China to Laos

While Laos is landlocked, sea freight can be used effectively by shipping goods to nearby ports, such as Haiphong in Vietnam or Bangkok in Thailand, and then transporting them overland to Laos.

Advantages of Sea Freight

• Cost-Effectiveness for Large Volumes: Sea freight is the most economical choice for bulk shipments.
• Capacity: Ships can accommodate large volumes of cargo, making it ideal for businesses with significant shipping needs.
• Flexibility: Various container options are available, including FCL (Full Container Load) and LCL (Less than Container Load).

Shipping Time from China to Laos

Shipping times vary based on the method chosen:

• Rail Freight: Typically takes 2-3 days from Kunming to Vientiane.
• Air Freight: Generally takes 1-3 days, depending on flight availability.
• Sea Freight: Depending on the port and overland transit, it can take 10-20 days.

Shipping Costs from China to Laos

Shipping costs depend on the method, weight, and volume of the shipment:

• Rail Freight: Costs are generally lower than air freight, around $0.10-$0.50 per kg.
• Air Freight: More expensive, averaging $5-$10 per kg.
• Sea Freight: Costs can range from $0.03-$0.10 per kg for bulk shipments, depending on container type and logistics.

Customs Clearance from China to Laos

Navigating customs clearance is crucial for smooth shipping operations:

• Documentation: Ensure all necessary documents are prepared, including commercial invoices, packing lists, and certificates of origin.
• Duties and Taxes: Be aware of applicable import duties and VAT, which can affect overall shipping costs.
• Customs Broker: Consider hiring a customs broker to facilitate the clearance process and ensure compliance with regulations.

Considerations for Shipping from China to Laos

When shipping to Laos, consider the following:

• Infrastructure: Road and rail infrastructure can vary, so plan for possible delays.
• Regulatory Compliance: Stay updated on Lao customs regulations and import restrictions.
• Product Type: Certain goods may require special permits or certifications, affecting the shipping process.
• Shipping Insurance: Consider obtaining insurance to protect your shipment against potential loss or damage.

How can I be exempted of taxes for an import to Laos?

When preparing for an import, it’s beneficial to explore ways to reduce your tax liabilities. Fortunately, there are options available! One crucial step is to request your supplier to provide the completed Form E document if they haven’t done so already. We will review this document prior to any further procedures, as any inaccuracies could lead to unexpected tax payments.

a) Certificate of Origin (CO)

The Certificate of Origin (CO) is essential for verifying the country and location where your product was manufactured. This document must be issued by a notary public or a government authority. Typically, COs fall into two categories: regional preferential certificates of origin and non-preferential certificates of origin. Additionally, there’s the GSP Certificate of Origin (Form A).

b) ASEAN-China Free Trade Certificate of Origin

The China-ASEAN Free Trade Certificate of Origin (FORM E) is applicable in Laos and across all ASEAN nations. If your product is accompanied by a FORM E issued by the China-ASEAN Free Trade Area, you could benefit from preferential tariff rates in the importing country, reducing the usual tax rate by up to 5%.

The “Trade in Goods Agreement” outlines the format required for the CO, as specified in Protocol II. Ensure that you refer to the instructions detailed on the last page of this protocol.

Now that you’re equipped with the knowledge to minimize duties, let’s explore the freight options available for transferring your products from China to Laos.

CUSTOMS CLEARANCE IN LAOS

As a landlocked nation, Laos relies heavily on trade with its neighboring countries: Thailand, China, and Vietnam. In 2016, a significant 62% of Laos’s imports originated from Thailand, followed by 19% from China and 11% from Vietnam. When it comes to exports, China was the destination for 40% of Lao products, with Thailand receiving 30% and Vietnam 16%.

Laos is a full member of the ASEAN organization, which means its customs duties and procedures with China are governed by the ASEAN–China Free Trade Area (ACFTA). This agreement, established after negotiations between the Chinese government and ASEAN representatives, aims to facilitate and enhance trade between the two regions.

One of the key benefits of the ACFTA is the substantial reduction of tariff barriers—over 90% of Chinese goods can enter ASEAN countries, including Laos, without incurring any taxes. This means that you likely won’t face additional costs when importing products from China to Laos.