Cambodia | Trade

Department Supervising Trade

Aan he Ministry of Commerce has overall supervising responsibilities over internal and extemal trade activities  rding to the Sub-Decree on the Organization and Functioning of the Ministry of Commerce(No 131adopted on 19 March 2014). the Ministry is responsible, inter alia, for the development of trade policy, maintainin  commodities price on the markets, market intervention, especially strategic commodities: supervising foreign trade  issuance of license and certificate for export and import as required by laws and regulations; development of  competition policies; drafting laws on trade: managing trademarks and intellectual property and unfair competition  exercising control over quality, safety of goods and services: managing and implementing provisions on trade  preferential systems and issuing certificates of origin: managing the commercial registration and maintainingcommercial registry; developing e-commerce  According to the Sub-Decree on the Organization and Functioning of the Ministry of Commerce(No. 131  adopted on 19 March 2014). the Ministry exercises its trade supervisory functions through the General Department  of Domestic Trade. the General Department of Intemational Trade, and the General Department of Inspection of  Exported and Imported Goods and Suppression of Fraud CCamControl')  However, trade is related to many other sectors which are governed by other authorities. For instance, tax and  custom issues are under the Ministry of Economy and Finance.

B. Brief Introduction of Trade Laws and Regulation  The Law on Commercial Rules and Commercial Registry 1995, amended in 1999, is the main law goveming  trade activities in Cambodia. This law defines trading activities as: buying, goods for sale including real property, all  leasing enterprise(s): manufacturer enterprise (s), enterprise(s)for commission(broker(s): transport enterprise(s)  nterprise(s) for publication and other services; operation of bank(s) for currency exchange(s): providing middle-

man service(a), agency service(s) coordinating offices: cultural services, and doing business for public spectators  (scenery), operation of entorprise(s) for construction, buying or renting ship/vehicle(s)for transportation by road  by water way or by airway. -all kinds of insurance: fishing, forestry, and mining business(s)

direct investment(FDi) and trade. the officient law relating to the subject need to be enacted and implementedUnderstanding to this necessity. the Royal Government of Cambodia (RGC)has participated to divers  Intenational or Reglonal Organizations, such as World Trade Organization and Association of South-East Asian  Nations(ASEAN) and signed some main conventions insuring the protection of the foreign investment. The  Govemment has also adopted some national texts in the sector, Multilateral Conventions ratified by Cambodia  includes the Washington Convention 1965 on the International Center for Settlement of Investment DisputesCSID).the Agreement on Trade Related Investment Measures(TRIMs)or the World Trade Organization (WTC  the Framework Agreement on the ASEAN Investment Area. In addition to this, Cambodia has also ratified many  lateral agreements on the Promotion of the Investment with other countries such as China, European Union,  Civil Code Law on Customs, Law on the Control of Quality and Safety of Go0 3.  nd USA For domestic laws  Cambodia has adopted many law both in commercial and investment fields, such as Law on Investment of theKingdom of Cambodia and its subsequent amendment, Law on Commercial Enterprises, Law on Concession  and Services, along with variousimplementing sub-decrees and ministerial regulations

In addition, Cambodia has ratified numerous trade and investment protection agreements with many  ountries Specifically. Cambodia has ratified the Framework Agreement and Protocol For ASEAN-China FreeTrade Area(2007). Agreement on Trade in Service of the Framework Agreement on Comprehensive Economic

on between ASEAN and the pe  Framework Agreement on Comprohensive Economic Cooperation between ASEAN and the People's Republic of  China (2010), and Third Protocol to Amend the Framework Agreement on Comprehensive Economic Cooperation  between ASEAN and the People's Republic of China and the Protocol to Integrate the Sanitary and Phytosanitary  Measures and Trade Technical Barriers into the Framework Agreement on Comprehensive Economic Cooperationbetween ASEAN and the People's Republic of China(2013)  The Ministry of Economy and Finance adopted scheme to reduce and eliminate import tariffs under theASEAN- China Free Trade Agreement (ACFTA)(Prakas No 645, 22 August 2008), which allows the progressive  reduction to elimination of tariffs by 2018  The Civil Code provides for rules for the establishment contractual relationships. Law on Customs defines  rights and responsibilities of the customs administration to manage the customs procedures, collect customsduties and other charges for imported and exported commodities, prevent and crack down on customs violations.In relation to trode. The Law on Control of Quality and Safety of Goods and Services provides for the authority of  the Ministry of Commerce to set and certify the quality standards for goods and services and to demand from thImporter and exporter the certificates indicating the qualty and safety of the products, and to suppress commercialfraud. The Lnw on Commercial Enterprise provides for rules of establish different types of business organizationsCambodia has also adopted numerous regulations, which include, but not limited to. Sub-Decree  PINNOnon Sanitary Inspection of Plant and Animal Products (2003): Sub-Decree on the Standards and Control of

seeds, animal drugs and foods: Sub-Decree Establishing the List of Prohibited and Restricted Commodities(2007)  listing 1537 items that require export or import permits or phytosanitary certificates or that are absolutely prohibitedfrom import/export: Prakas on the Procedure and Standard Requirements for the Registration of Pesticides(2012)  for the importation, exportation, and circulation of these products; Prakas on the Modified Procedure for Fore

C. Trade Management

On March 1, 2006. the Royal Govemment of Cambodia adopted a Sub-Decree No 21  on the Faciitabon of  de Through Risk Management to establish an Inter-Agency Coordination Group (CG)to manage the import  export operations through risk management. The Group is composed of the representatives from Customs an  Excise authority, CamControl, Ministry of Commerce, Ministry of Health, Ministry of Agriculture, Forestry, andFishery, Ministry of Mines and Energy, Committee of Special Economic Zone of Cambodia  The IcG has a primary duty to ensure the balance of risk between regulatory interventions and tradecllitation among relevant agencies Involved in the management of import-export operations. TI

reach a common objective in the management of import-export operations, revie  and inspection of intemationally-traded commodities in order to produce an en iew procedures for the releaseCambodia Trade Integration Strategy 2013-2018: The strategy on the trade management and development  is set in the Cambodia Trade Integration Strategy 2013-2018(CTIS) Cambodia is a beneficiary of the General  System of Preference(GSP)schemes launched by developed countries. This status allows Cambodia to enjoy  the import tariff exemptions or administrative process simplification for exporting its products to these developed  countries in EU and in Asia as well as in the United States of America.  Rules of origin: To ensure the credibility of the products and to be in compliance with the general system of  preference provided to Cambodia by the developed countries, the verification of the origin of the product is one  of the required management measure. In this regard, the Ministry of Commerce issue certificate of origin (c/o)  which is an official document for certifying the products originated, wholly obtained, produced or manufactured in  Cambodia.In accordance with the Prakas No, 112 MOC/SM 2013 on Revision of Corticate of orgin Issuance  Procedures. The exporter of the product from Cambodia must submit an application with relevant supporting  documents to the Ministry of Commerce for the issuance of a certificate of origin of the products targeted to be  exported. For instance, according to the website of the Ministry of Commerce, Cambodia issues various different

EAN- Australia-New Zealand: Certificate of Origin form aanZ.  a: Certificate of Origin form AC

Korea: Certificate of Origin form AK

Vietnam: Certificate of Origin form s  eneral System of Preferences(LDC and LLDC): Certificate of Origin form A  Anyway, for Non-Preferential Tariff: Can be issued using Certificate of Origin form N

D. The Inspection and Quarantine of Import and Export Commodities

Based on the assessment of risk of customs violations, imported and exported commodities may be subject to  ysical inspection to make sure that the commodities conform to those listed on  oms declaration in ter  of quantity, origin, and other attributes of those commodities and that they are not illegal ones(Article 3, Prakas on  the Inspection of Exported and Imported Commodites and Means of Transportation of Ministry of Economy and  Finance, No. 569, 19 August 2010). Inspection can be conducted in whole or in part of the commodities. Physical  inspection is conducted after the customs declaration is registered, but it can be done before the registration of  the declaration as well if it is permitted by the Director General of Customs and Excise of Cambodia. Commodities  required inspection before customs clearance and release if they are determined to be prohibited or restricted  commodites, high nisk, or subject to the requirements of certain govemment agencies(Article 8 Prakas No. 21 onE Customs Management

The exportation and importation of any goods, whether subject to customs duties or exempted, must follow  the following procedural steps  The importer or exporter must file a declaration a form called Single Administrative Document(SAD).The  declaration is filed into Automated System on Customs Data(ASYCUDA) by a company that has value Added Tax  certificate or its representative, owner of the goods or its representative, customs broker accredited by the customsauthorityTheprocessoffilingthedeclarationisexplainedintheCustomswebsitehttp://www.customs.govkh/Alter the SAD is duly registered in the ASYCUDA, the customs authorities proceed with inspecting the goods  if they are the same declared in the SAD

The ASYCUDA will compute the amount of duties, taxes, and fees to be paid and issue a notice for

Imported and exported goods are inspected by the Inspectio

on the Determination and Management of Inspection Office of International Gate, International Border Gate  Bilateral Border Gate, Border Area Gate, and Sea Port All Over. Kingdom of Cambodia(No. 64. 9 July 2001).This

ks and Transport), immigrant police(Ministry of Intenor) customs officers(Ministry of Economy ar

The officer of the gate is the presiding and coordinating the work of the office. The police are responsible  for controlling cross-border crimes and violations of immigration law and maintain order of the gate. The customs  officers are responsible to check the customs declaration, inspect all goods to ensure the compliance with customs  procedure and customs law and regulations, and collect customs duties and other taxes. The Cam Control officers  are responsible for the inspection of quantity, quality, and safety of goods, and take measures against fraud, and  collect fees from the inspection

The Customs and Excise authorities may conduct audit of the documents to make sure that imported  or exported goods were properly declared, prohibited or restricted goods were processed in accordance with  applicable laws, customs duties and other charges were properly paid, All documents must be kept at the place of  business for ten years