ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

TRADERS’ MANUAL FOR LEAST DEVELOPED COUNTRIES

CAMBODIA

UNITED NATIONS

ECONOMIC AND SOCIAL COMMISSION FOR ASIA AND THE PACIFIC

TRADERS’ MANUAL FOR LEAST DEVELOPED COUNTRIES

CAMBODIA

UNITED NATIONS New York, 2004

ESCAP WORKS TOWARDS REDUCING POVERTY AND MANAGING GLOBALIZATION

ST/ESCAP/2320

The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Mention of firm names and commercial products does not imply the endorsement of the United Nations. This publication has been issued without formal editing.

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PREFACE

In today’s world, characterized by increasing economic integration and globalization, transparency and access to trade rules and procedures is becoming more important, particularly for the small and medium-sized enterprises in the least developed countries. It is important that information on Asian and Pacific least developed countries, concerning their market potential, trade regimes, import procedures and other trade-related issues, be available. The Economic and Social Commission for Asia and the Pacific (ESCAP), has been addressing this need on a priority basis and disseminating information through its trade information service network, TISNET, and in publications and handbooks for the past two decades. The ESCAP series of traders’ manuals for Asian and Pacific countries has been acknowledged as a very useful source of information. In this context, ESCAP has concentrated its efforts on publishing and updating the traders’ manual for the least developed countries of the ESCAP region. In order to reach a greater audience through the Internet, this publication will be available only in electronic version. This will allow more freedom for regular updates in due course. This first online edition provides updated information on the business and investment climate in Cambodia. The ESCAP secretariat has received information and support from various agencies in Cambodia for which it is very grateful. The secretariat wishes to acknowledge, with appreciation, the cooperation received from the General Department of Trade, Foreign Trade Department, Bureau of Coordination and International Organizations, ASEAN and International Organizations Department and the Export Promotion Department at the Ministry of Commerce; the Cambodia Investment Board at the Council for Development of Cambodia; the Industrial Affairs Department at the Ministry of Industry, Mines and Energy; the National Bank of Cambodia; the Customs and Excise Department at the Ministry of Economy and Finance; the Ministry of Tourism; the Cambodia Chamber of Commerce; the Cambodia Development Resource Institute and the ACLEDA Bank. We hope that this edition will be useful to both exporters and importers of Cambodian merchandise, as well as to investors.

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REGULATIONS AND PROCEDURES ……………… EXPORT CHARGES …………………………………………………………. II... 31 32 34 38 40 41 42 43 43 Part Five TIPS FOR VISITORS TO CAMBODIA ………………… 45 ANNEX Integrated Internet links listed in this document ………………………………………… 47 iv . FOREIGN INVESTMENT POLICY AND REGULATIONS ……………. 24 I. VI.. FOREIGN EXCHANGE ……………………………………………………… LABOUR ISSUES ……………………………………………………………. PRINCIPAL IMPORT ITEMS ………………………………………………. II. TAXATION ……………………………………………………………………. PROTECTION OF PROPERTY RIGHTS ………………………………….. Part One GLOBAL COUNTRY PRESENTATION …………. FOREIGN EXCHANGE REGIME ………………………………………….. DOCUMENTS ………………………………………………………………… MARKETING AND DISTRIBUTION ……………………………………… GOVERNMENT PROCUREMENT AND STATE TRADING ORGANIZATIONS …………………………………………………………… VII. INCLUDING INSURANCE ………………………………. VI. 11 14 16 18 18 20 22 Part Three BUYING FROM CAMBODIA ……………………….. I..CUSTOMS …………………………………………. II. IV. 24 27 28 28 28 29 Part Four INVESTING IN CAMBODIA ……………………… 31 I. REGULATIONS AND PROCEDURES ……………… TARIFF SCHEDULE . III. LETTERS OF CREDIT ……………………… DOCUMENTS.. IX. INVESTMENT INCENTIVES ………………………………………………. IV.…………………. PRINCIPAL EXPORTS …………………………………. V. DISPUTE SETTLEMENT …………………………………………………… CAPITAL MARKET ………………………………………………………….. VI. III. V.……… Chapter I. V. SETTLEMENT OF BILLS. III. BASIC COUNTRY DATA …………………………………………………….CONTENTS Page PREFACE ……………………………………………………………………………… ABBREVIATIONS …………………………………………………………………….. INVESTMENT PROCEDURES …………………………………………….. VIII. II. STATE MONOPOLY IN EXPORTS ………………………………………. MACROECONOMIC CLIMATE …………………………………………… 1 6 ii v 1 Part Two SELLING TO CAMBODIA ………………………… 11 IMPORT POLICY. IV.. EXPORT POLICY. VII..

DFDL EIU ELVIS EU FDI f.ABBREVIATIONS ADB AFTA AH ASEAN BCC BOT CAMCONTROL CCCI CDC CEPT CIB c. GDP GTC GSP ICSID KAFIMEX LDC MAFF MIME MFN MOC NBC OTEXA QIP RNK SARS SAPTA SGS SMEs SPZ STO TRIPS TVK UNDP VAT WHO WIPO WTO Asian Development Bank ASEAN free trade area Asian Highway Association of Southeast Asian Nations business cooperation contract build-operate-transfer Cambodia Import-Export Inspection and Fraud Repression Department Cambodia Chamber of Commerce and Industry Council for the Development of Cambodia common effective preferential tariff Cambodia Investment Board cost.o. Ltd.f. Forestry and Fisheries Ministry of Industry. insurance and freight Dirksen Flipse Doran & Le (Cambodia) Co. Economist Intelligence Unit electronic visas information system European Union foreign direct investment free on board gross domestic product Green Trade Company generalized system of preferences International Centre for Settlement of Investment Disputes Kampuchea Fish Import and Export Company least developed country Ministry of Agriculture. Mines and Energy most-favoured nation Ministry of Commerce National Bank of Cambodia Office of Textiles and Apparel qualified investment project National Radio of Cambodia severe acute respiratory syndrome SAARC Preferential Trading Arrangement Société Générale de Surveillance small and medium-sized enterprises special promotion zone State trading organization Trade-Related Aspects of Intellectual Property Rights National Television of Cambodia United Nations Development Programme value added tax World Health Organization World Intellectual Property Organization World Trade Organization v .i.b.

15 estimated PCs per 100 inhabitants Bhutan's literacy rate stands at 68.4 million (2002 ESCAP estimates) Female: 51. Internet users per 10.7’E and 1060 10’E longitudes. Female: 58.44.572 km (Thailand 803 km.600 km Rural roads: 28. American Express Cambodia Airways Phnom Penh and Siem Reap have international airports Two lines: Phnom Penh to Poipet: 385 km Phnom Penh to Sihanoukville: 263 km National roads: 4.1 inhabitants per sq km Urban population 10-15 per cent Phnom Penh 20 provinces.15 VISA.000 inhabitants 0.035 sq km Total of 2. Add seven hours to Greenwich Mean Time Khmer (Official language) English widely understood as well as French Buddhism (95 per cent) 7.200 km (only 12 per cent are paved) Provincial roads: 3.000 inhabitants: 7. Business hours are from 0900 to 1700 hours 9 January: National day 12-15 April: Cambodian new year 1 May: Labour day 9 November: Independence day In 2001. 181.46. Lao People’s Democratic Republic 541 km and Viet Nam 1.547 communes.228 km) 13.4 per cent Male: 48. MasterCard.0 per cent Male: 81. 435 km of coastline Khompong Som (Sihanoukville) Koh Kong US$ 1 = 3.44 Internet users per 10.848 metres. Altitude between 305 and 1. BASIC COUNTRY DATA Between 100 57’N and 160 08’N latitudes. 172 districts and 1.900 CR Location: Area: Land boundaries: Population: Population density: Capital: Administrative Division: Time zone: Principal languages: Principal religions: Information technology: Education and literacy: Currency: Measures: Business hours: Holidays: Telecommunications: Credit cards: Airlines: Airports: Railway network: Road network: Shipping: Exchange rate: _______________________________________________________________________________________________________ Part One: Global Country Presentation 1 of 48 .000 inhabitants: 0.6 per cent 59.500 km.8 per cent Riel (CR) Metric system Cambodia works five days a week from Monday to Friday. estimated PCs per 100 inhabitants: 0. 3 municipalities. Internet host per 10.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Part one GLOBAL COUNTRY PRESENTATION I. and between 1010 4.7 per cent.

In 1972 the monarchy was abolished and the Khmer Republic proclaimed. The Tonle Sap River is the unique river with return in the world. The northeast monsoon. In 1431. the floodwater reverse the flow of the Tonle Sap River and increase the size of the lake from about 2.813 m). An average annual temperature is around 25°C. B. Lao People’s Democratic Republic in the north. Cambodia’s climate is dominated by the monsoons. After the monsoon. flows through Cambodia about 486 km and continues to the South China Sea via southern Viet Nam.600 km2 to 10. One is formed by the Mekong River. Phnom Aoral (1. The Tonle Sap and Mekong Basin areas consist mainly of plains with an elevation of less than 100 meters. Viet Nam invaded Cambodia and installed a new Government. humidity and heavy rains from May to October. _______________________________________________________________________________________________________ Part One: Global Country Presentation 2 of 48 . By the end of the 18th century. The Khmer rouge took over Phnom Penh on 17 April 1975. In the 19th century the kingdom came under threat of its neighbouring countries. Angkor was taken over by the Kingdom of Sukothai. the Khmer civilization was very well known through the centralize empire based at Angkor. In 1976. the Khmer Rouge regime renamed the country Democratic Kampuchea and proclaimed a peasant revolutionary State. January is the coldest month and April is the warmest. a new constitution was approved and several rounds of elections have taken place. The southwestern monsoon brings winds. When the Mekong River swells during the monsoon season.000 km2. which is cool and dry. The country is bordered by Thailand in the west. The country is divided into two dominant topographical regions. The 435 km of coastline is very often filled with mangrove. Cambodia gained its independence from the French in 1954. blows from November to April. The Tonle Sap is the natural flood retention basin of the Mekong River system. The Cardamon Mountains in the southwest have the highest point. located in the central part of Cambodia. In 1887. At the east part of Cambodia near the border with Viet Nam I are the Ratanakiri plateau and the Chlong highlands. Geography and climate Cambodia is roughly rectangular in shape. Viet Nam in the east and by the Gulf of Thailand in the south. which rises in Tibet. The Dangrek Mountains in the north are the prolongation of the Korat plateau in Thailand. In the early 1990s. The land extends approximately 580 km east-west and 450 km at its broadest north-south. are oriented northwest-southeast. Cambodia was incorporated to the French Indochina Union. History Since the early 9th century. In December 1978. the flow reverses and water flows out of the engorged lake. the territory of the old Angkorian Empire had been greatly reduced. Since then. The United Nations Transitional Authority in Cambodia (UNTAC) was approved by the United Nations Security Council in February 1992 and the first free elections took place in May 1993.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ A. United Nations Security Council began to negotiate a settlement between Viet Nam and Cambodia which paved the way for the Paris Peace Agreement of October 1991. The other region is formed by the Tonle Sap and the Bassac river systems.

which has a population estimated of around one million. Cambodia is classified as least developed country (LDC). Apsara Radio and TV Channel 11 are broadcasting all over the country and are also private sector companies. Economy The UNDP’s Human Development index which integrates longevity and health. Meanwhile the mountainous regions and the widespread malaria areas are less populated. in particular in the 40’s age group. Siem Reap and Sihanoukville. Ratanakiri. The Cambodia Daily and the Phnom Penh Post are the two English newspapers while Cambodge Soir is the French language newspaper. In 2001. Siem Reap. the country started the garment processing industries. Battambang. The population is concentrated in the cultivated central plain. There are several Khmer language newspapers. the country’s infrastructure is improving gradually. The National Television of Cambodia (TVK) is broadcasting daily information in national and international languages along with some cultural programmes. capital city. the country was self-sufficient in food and produced exportable surpluses of its main crops such as rice and corn.3 per cent per year according to the last nationwide census. Cambodia regained its self-sufficiency in rice production and began exporting small quantities of rice. There is also a small Cham population and some highland ethnic groups. By the end of the 1990s. FM and SW in national and international languages. E. Sihanoukville is the only deepwater port. D.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ C. Pursat and Sihanoukville. a private sector company. due to the long conflict situation. Before the country plunged into civil wars in the 1970s. Kompong Cham and Battambang are the two main cities after Phnom Penh. Thanks to massive foreign assistance. ranked Cambodia the 130th out of 175 countries in 2002. The Radio National of Kampuchea (RNK) is broadcasting daily information by radio AM. has three relay stations in Kampong Cham. Cambodia is a free market economy and acceded to WTO in September 2003. most of the labour force in Cambodia was engaged in agriculture. knowledge and standard of living in its measures of development. Languages and communication Khmer is the country official language and is spoken by over 95 per cent of the population. The two other main ethnic groups are Vietnamese and Chinese. _______________________________________________________________________________________________________ Part One: Global Country Presentation 3 of 48 . French is also spoken but mostly by older people while English is now more commonly spoken by the young generation. The Radio and Television 3 is broadcasting in Phnom Penh. The population is composed of about 90 per cent of Khmer ethnic origin. Women largely outnumber men. Around 85-90 per cent of the population lives in rural areas. By mid-1990s. Cambodia Television Station Channel 9 is a private sector company. Population The average population growth rate of Cambodia is around 2. Bayon Radio and Television. 43 per cent of the population was under the age of 14.

Regulation adopted by the Prime Minister and countersigned by the interested Minister. Natural resources Cambodia’s main natural resources are rainforests. The National Assembly has 122 members who are elected for a five-year term. Highest Norm that may be enacted by the Executive Power. in his absence. the distribution of employed persons of 10 years old and over by type of primary occupation is 67. Revision or Amendment of the Constitution. Designates either the Promulgated Law or the Act of Promulgation of a Law by the King. by the acting Chief of State. G.0 per cent for _______________________________________________________________________________________________________ Part One: Global Country Presentation 4 of 48 . Government (political structure) Since 1993.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ F. Mineral resources are concentrated in the province of Battambang and contain limited quantities of zircon. The rainforests areas used to cover around 70 per cent of the territory in the 1960s. within the framework of its Regulatory Power. King Norodom Sihanouk is the head of State and responsible for appointing the Prime Minister. Its role is to scrutinize laws passed by the National Assembly. Human resources According to the labour force survey of Cambodia in 2001. voted by the National Assembly with a majority of two-thirds of all its members. by the Acting Chief of State. Cambodia’s legal system stems from the Constitution of 1993 and is organized in the following way. water and minerals. Table 1. Hierarchy and definition of Cambodian main legal norms Constitution Supreme Norm of the Cambodian Legal Hierarchy. The coastline in the Gulf of Thailand is well known for its mangrove. Cambodia is a constitutional monarchy. During the long period of wars and political instability. H. Signed by the King or. sapphire and ruby. uncontrolled logging took place decimating the country’s forests resources. The 61 members Senate is the upper house of Parliament. Legislation can be passed only by an absolute majority of all members of Parliament and constitutional changes require the support of a two-thirds majority. Adopted by the Constituent Assembly and promulgated by the King. and countersigned by the Prime Minister and the concerned Minister. Signed by the King or. Regulation adopted by a concerned Minister (or the Governor of the National Bank for banking issues) Ministerial implementing measure Constitutional Law Kram (Law) Kret (Decree) Anukret (Sub-Decree) Prakas (Regulation) Sarachor (Circular) Source: Cambodia Council of Jurists . in his absence. and generally countersigned by the Prime Minister and the concerned Minister. The Mekong River and the Tonle Sap basin are the most fertile regions and represent around 20 per cent of Cambodia’s total area.

Four are located in Phnom Penh. the World Intellectual Property Organization (WIPO). One is shop and market sales which occupies 13. occupying 6.2 per cent of the male. In two areas of the service sector. the International Standards Organization (ISO). Institute of Technology. the World Customs Organization (WCO) and the Paris Convention for the Protection of Industrial Property Rights. Trade agreements Country Brunei Darussalam Canada China European Union India Indonesia Type of agreement Trade Memorandum of Understanding (MOU) on LDC initiation Trade Trade in textiles products Trade Trade Date of agreement 19 August 2000 21 January 2003 19 July 1996 3 February 1999 6 November 2002 18 February 1997 _______________________________________________________________________________________________________ Part One: Global Country Presentation 5 of 48 . I. is located in the province. the Mekong River Commission (MRC). the United Nations Conference on Trade and Development (UNCTAD). the International Monetary Fund (IMF). Cambodia’s participation in sub-regional trade cooperation includes its membership to the ASEAN and ASEAN Free Trade Area (AFTA). the Multilateral Insurance Guarantee Agency (MIGA). Scientific and Cultural Organization (UNESCO). The country is also engaged in bilateral trade-related agreements as listed in table 2. Moyarishi Vedic University. the World Health Organization (WHO) and the World Tourism Organization (WTO).2 per cent of the female). the International Fund for Agricultural Development (IFAD).1 per cent of total male employed population and 9. Cambodia’s accession into the World Trade Organization (WTO) was approved on 11 September 2003 as the 147th member and became the first least developed country to access WTO since its creation in 1995. the United Nations Development Programme (UNDP). Faculty of Law and Economic Sciences.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ skilled agricultural and fishery workers (occupying 67. and the Faculty of Pedagogy. the Food and Agriculture Organization of the United Nations (FAO). the International Development Association (IDA). Another one is craft and related trades. the International Telecommunication Union (ITU). The higher education system of Cambodia is composed of five universities. the proportion of employed female is higher than male. the International Civil Aviation Organization (ICAO). Table 2. the International Maritime Organization (IMO). the International Bank for Reconstruction and Development (IBRD). Cambodia is also a member of the Asian Development Bank (ADB). National Institute of Management. the United Nations Educational.8 per cent of the total male employed population and 66.8 per cent of the total female employed population and 6. The fifth.5 per cent of the female. Participation in regional and multilateral agreements Cambodia is a member of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

garment quotas have to be eliminated in 2005. GDP’s growth slipped from 6. the Government is committed to maintain economic stability in the coming years through economic reform. MACROECONOMIC CLIMATE A. The importance of this sector has slipped in recent years as it accounted for 48 per cent in 1997. II. after the adoption of the Banking and Financial Institutions Law in 1999. a sector highly dependent on market changes and access arrangements. the sector has its own constraints as it is highly concentrated around Siem Reap and Phnom Penh with weak linkages to the rest of the economy.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Country Lao People’s Democratic Republic Malaysia Philippines Republic of Korea Thailand Thailand Thailand United States of America Viet Nam Viet Nam Viet Nam Type of agreement Trade Trade Economic and trade relations MOU Trade Trade. the industry sector represented 19 per cent of GDP from a previous 12 per cent in 1997. _______________________________________________________________________________________________________ Part One: Global Country Presentation 6 of 48 . Reform in trade has made significant progress as Cambodia prepared and gained entry to the WTO in September 2003.5 per cent in 2002.3 per cent in 2001 to 4. Reforms in the banking sector started in 2000. Gross domestic product Since its re-emergence into the world’s economy in the late 1990s. In order to tackle poverty. mainly due to the impact of a regional outbreak of the Severe Acute Respiratory Syndrome (SARS) in the tourism industry. The tourism sector is currently one of the driving forces of Cambodia’s growth. However. The industry sector growth has been led mainly by the development of garment manufactures. However. Cambodia has taken several steps forward to improve the country’s economy. The annual gross domestic product (GDP) growth rate has picked up since 1998. Land reform remains crucial as only 10 per cent of rural households hold legal land titles. agriculture accounted for around 38 per cent of Cambodia’s GDP in 2001. economic and technical cooperation MOU on intellectual property cooperation MOU on joint committee on trade Textiles Trade Transit Commercial transaction in border areas Date of agreement 25 May 1998 4 February 1999 17 December 1995 6 November 2002 20 September 1996 5 March 1997 22 May 2000 20 January 1999 24 March 1998 7 September 2000 26 November 2001 Source: Ministry of Commerce. Under WTO rules. According to the Asian Development Bank (ADB). In 2001.

705 Bn Riels Public Finance administration 3% 7% Transport and communications 7% Others 6% Agriculture 35% Trade 15% Construction 7% Mining 0% Electricity. in the last 30 years forest cover has drastically declined despite Government’s efforts to clamp down on illegal logging. Chart 2. along with garments. manufacturing sector’s steady growth averaged 13. Key Indicators.5 per cent per year. gas and water 1% Manufacturing 19% Source: Asian Development Bank. Cambodia GDP structure in 2002 Total GDP at current market price: 14. Key Indicators. it remains a major part of Cambodia’s economy employing a great majority of the workforce in the countryside.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Chart 1. Thanks to its potential in fisheries and livestock.513. May 2003 B. although garment _______________________________________________________________________________________________________ Part One: Global Country Presentation 7 of 48 . During the period from 1996 to 1999. Main economic sectors Although the role of agriculture has been reduced over the years. as well as food processing. gas Manufacturing and water 12% 0% Mining 0% Source: Asian Development Bank.5 Bn Riels Finance 7% Transport and communications 6% Public administration 3% Others 4% Agriculture 48% Trade 16% Construction 4% Electricity. Garments and textiles are growing fast due to Cambodia’s access to the markets of the European Union (EU) and the United States of America through Generalized Systems of Preference (GSP) and Most Favoured Nation (MFN) status. the country is seeking to boost agricultural and food products as potential exports. May 2003.3 per cent. The main force of growth in the manufacturing sector has been textiles and garments. However. Cambodia GDP structure in 1997 Total GDP at current market price: 9. However. Forests are considered the most valuable resource of the country. led by textile production which grew 64.

Foreign investors have expressed interests in mining of gold and gems. followed by logs and timbers. the sector has been seriously affected Lately by the global concerns about SARS and the war of terrorism. The Government is seeking ways to increase the inflow of tourists with recent proposals to allow the use of the Chinese currency in Cambodia in order to attract more visitors from China.2 per cent of GDP. In 2001. the construction sector accounted for 4. the beach town of Sihanoukville and the eco-tourism in Ratanakiri province. The policy of “open air” . Main destinations by order of importance are the European Union. especially in three areas. Cambodia commits to bind tariffs for intra-ASEAN trade to zero and 5 per cent by the year 2010. and food processing is a major business of SMEs. there were 25. Cambodia became a member of the Association of Southeast Asian Nations (ASEAN) in 1999 which requires the implementation of trade liberalization and tariff reduction towards an integrated economy under the ASEAN Free Trade Area (AFTA). C. Cambodia’s garment sector is facing competition with exports from China and Viet Nam. Although resourceful in minerals. Since Cambodia re-emerged in the 1990s. International trade Cambodia had established trade with foreign countries since the 1960s. Cambodia’s mining sector contributed only 0. However. accounting for the majority of all business enterprises in the country. Foreign investment in tourism sector is also being sought. tourism started to recover again at a growth rate of 30 per cent per year. rubber and corn. the Angkor Wat complex in Siem Reap. Exploration of oil and gas has also been discussed with foreign companies. however it is still at an early phase.1 per cent to real GDP in 2001. By end of 2000. rice and fish. trade policies have been greatly liberalized and Cambodia became a member of WTO in September 2003. _______________________________________________________________________________________________________ Part One: Global Country Presentation 8 of 48 . Free-market oriented trade regime began in late 1980s with the abolishment of the state monopoly for foreign trade and the adoption of foreign investment law in 1989. United States of America. rubber. Under this agreement. Trading activities came to an end during the Khmer Rouge regime in the 1970s. Since 1993. as it has meant building hotels and importing construction materials. Cambodia’s main export is garment. Construction business has started to pick up again since stability was re-gained after 1998.has encouraged the development of tourism. About two-thirds of manufacturing companies are in the form of small and medium-sized enterprises (SMEs).which allows foreign airlines to fly directly to the Angkor Wat temple complex and less restricted regulations on tour operators .Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ exports made up nearly 78 per cent of exports in 2001. especially after the bombing of Bali in October 2002. In 2001. Viet Nam and Malaysia. mainly exporting agricultural products such as rice. Japan and ASEAN members such as Thailand.791 companies in manufacturing. becoming one of the main sources of foreign currency. it was estimated that tourism contributed nearly to 7 per cent of GDP in foreign currency. The increase in tourism has contributed directly to the growth of the construction sector.

The current foreign investment legislation encourages investment.6 57. In order to boost investment. mainly from Asia. as Cambodia’s tourism infrastructure is relatively weak.3 269.000 Millions US$ 1.f. top foreign investors in Cambodia are Malaysia.8 22.1 2.5 66. and Hong Kong.8 447. infrastructure.7 8. tourism. Taiwan Province of China. As of January 2002.9 0.4 1999 63.4 24. China.8 11.b. garment and textile production have attracted the bulk of foreign investment. agro-industry.i.000 500 0 1995 1996 1997 1998 1999 2000 2001 Exports.1 46.2 Source: Cambodian Investment Board. Investment projects approved by sector (Fixed assets.5 4. Source: Based on the data from the Ministry of Commerce D. China.4 81. in millions of US$) Sector Agriculture Agriculture Agro-industry Plantation Industries Garments Textiles Shoes Tourism Services Total 1996 120.1 79.4 171.0 842.8 5.2 522.6 28. It is expected that the establishment of export processing zones near the coastal and border areas will ease the transport issues for businesses. f. both domestic and foreign. construction.500 1. Since mid-1990s.6 67.0 109.2 161.6 8.o. Imports.8 70.8 3. Table 3. a Law on Industrial and Export Processing Zones has been proposed and awaiting adoption. export-oriented projects.0 111.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Chart 3: Total foreign trade 2.7 115. _______________________________________________________________________________________________________ Part One: Global Country Presentation 9 of 48 .9 2000 9. Foreign investment The Cambodia Investment Board (CIB)/Council for the Development of Cambodia (CDB) is the central authority approving any foreign investment project. New amendments to the Law on Investment of August 1994 were made in 2002 and are waiting for adoption and enactment. in the following sectors. Foreign investment is also encouraged in the area of tourism. energy and mining.6 20.8 50.1 21. United States of America. c.

16-22 March.000 workers). Vietnamese labourers can be found in several sectors such as trading.000 workers. affecting a total amount estimated of 100. Seoul. Annual Report 2002.gov. Cambodia Cambodia Investment Guide 2002.org/External/NP/LOI/2003/khm/01/index. the total labour force participation rate is 55.2 _______________________________________________________________________________________________________ Part One: Global Country Presentation 10 of 48 . Country Report August 2003 – Cambodia IMF Cambodia Letter of Intent. March 2003.kh/ Trade Policy and Industrial Sector Development in Cambodia. Thus. Employment of foreign skills is considered more liberal than in other countries in the region. Republic of Korea.6 for female). 2003. mainly working as farmers. 03/59.moeys.5 per cent for male and 54. DFDL/Mekong Law Group. All of this has resulted in shortages of skilled labour. the new Labour Law replaced the 1992 one stipulating the rights to form unions. 43 per cent of the population was under the age of 14 which would lead to high population growth rate in the future. According to the 1998 census. Almost 87 per cent of the labour force is concentrated in rural areas. WTO Diagnostic Trade Integration Study for Cambodia. In 2001. Youth and Sport http://www. Although the country encourages labour export.E. enhance professional skills. and has become one of the major issues for both investors and Government.200 workers) and Malaysia (approximately 1. Labour issues Cambodia has a fairly young population. Country Profile 2003 – Cambodia Economist Intelligence Unit. Major labour exports have been made to Greece (around 1. WT/IFSC/W/12/Add.gov.9 for female). Economist Intelligence Unit. Cambodia: selected Issues and Statistics Appendix Ministry of Commerce http://www. In 1997. foreign workers are imported to work in Cambodia due to shortage of local skills.htm IMF Country report No. one major constraint is low level of education of the labour force.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ E. 17 January 2003 http://www. and raise State revenue. This Labour Law in general meets international standards as well as the requirements for the United States MFN and GSP status.moc.3 per cent (4. Secretary of State for Commerce at the Workshop on International Trade and the WTO Agreements for Cambodia. Only 48 per cent of those over 25 years of age have completed primary education while there is a lack of educational opportunities.5 per cent (56. while the total unemployment rate is 5.imf. wood processing and construction.adb. mainly in the fields of construction.org ADB. References for part one: Global Country Presentation ADB.kh/ Ministry of Education. presented by H. absorb unemployed and underemployed labour. Asian Development Outlook 2003 http://www. Unofficial labour migration has occurred mostly to neighbouring countries. Sok Siphana. manufacturing and domestic services. August 2002.7 per cent for male and 5. Cambodian Government encourages the official export of labour services to improve the living conditions of people. Memorandum of Economic and Financial Policies. Mr. to strike and to bargain collectively.

are allowed to freely engage in import-export activities. and its 1999 Amendments. stipulate that trading entities including merchants and companies have to register at least 15 days prior to the commencement of commercial operations at the provincial or municipal commerce office.kh/laws_regulation/kram-Comm_amd. B.moc. Licensing. however.htm and http://www. for each pharmaceutical product registered with the Ministry of Health is subject to a one-time fee of US$200 and US$30 for each agricultural input registered at the Ministry of Agriculture. Import licences are required for some goods from the Ministry of Commerce. but the importer has to be registered with the Ministry of Commerce. All firms properly registered with the Ministry of Commerce are allowed to engage into import activities of all types of goods except military equipment and narcotic drugs.moc. for which the only legal importer is the Government. quotas and prohibitions In general. they have to compete with other private companies in the same market. All goods imported have to be reported to the customs office. the limited licensing system in place is for protection of human health. Licences for pharmaceutical products and agricultural inputs are issued free-ofcharge. Forestry and Fisheries. (See table 4 for restricted items and table 5 for prohibited items).htm 3 http://www. Import approval No approval is required to import goods into Cambodia.gov. C.kh/laws_regulation/part7_eco_dev/rkm95_law_commercial_reg. Investment companies can only conduct import-export business within the scope of their investment licence. but also from relevant government agencies depending on the nature of goods as listed in table 4. Licences for agricultural inputs are valid for one year and also extendable. registered with the Ministry of Commerce.htm 2 http://www. Any trading companies of Cambodian or foreign nationalities. Only goods that are classified as prohibited or restricted goods to import need permission from the relevant ministries. can operate trade in forestry products. REGULATIONS AND PROCEDURES A.1 The registration fee is about US$ 70 for both national and foreign companies. foreign or domestic.camnet. national security and protection of the environment.kh/customs/ _______________________________________________________________________________________________________ 1 Part Two: Selling to Cambodia 11 of 48 .moc. http://www. 1995.kh/laws_regulation/prk-moc-trading.gov.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Part two SELLING TO CAMBODIA I.gov. however. consumer interests.2 State trading companies still continue to operate. However only licensed concessionaires. or other places as determined by the Ministry of Commerce. IMPORT POLICY.com.3 Import licences issued by the Ministry of Health are valid for six months and extendable upon request. General The Law on Commercial Regulations and Commercial Register.

Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Application for other import licences requires a fee of 15. The licence application process is usually completed within seven days. August 2002. Cambodia will eliminate quantitative restrictions on imports of fertilizers.1. and other machinery for military purposes Wood products Measure Licence Licence Licence/permit Automatic licence Licence Permit Licence Licence Licence/permit Concerned agency Ministry of Agriculture. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 12 of 48 . Products subject to import licensing Product Agricultural inputs (pesticides and fertilizers) Artificial sweeteners Cultural items Cultural items above US$10.1. selected ones that may be imported under special circumstances and require ministerial authorization for import (see table 5).000 Riels and is valid for three months.000 Gold bars. Upon request. ships and boats. August 2002. precious stones and articles thereof Live animals Pharmaceuticals and medical materials Vehicles. Table 5. page 33. As per WTO membership agreement. Forestry and Fisheries Source: WTO Diagnostic Trade Integration Study for Cambodia. aircraft and parts. Table 4. silver. Forestry and Fisheries Ministry of Health Ministry of National Defence Ministry of Agriculture. however. it can be extended for an additional two months. pesticides and other agricultural inputs. Forestry and Fisheries Ministry of Health Ministry of Culture Central Bank of Cambodia Central Bank of Cambodia Ministry of Agriculture. no later than 1 June 2005. WT/IFSC/W/12/Add. except for special occasions Prohibited Prohibited Prohibited if deemed to have negative impact on society Prohibited Prohibited Prohibited Concerned agency Ministry of Defence/ Internal Affairs Ministry of Defence/ Internal Affairs Ministry of Agriculture Ministry of Education/ Culture Ministry of Environment Ministry of Environment Source: WTO Diagnostic Trade Integration Study for Cambodia. page 33. WT/IFSC/W/12/Add. Cambodia will also establish a WTO-consistent method of registration and review of imported agricultural chemicals. Among the products prohibited to import into Cambodia. Quantitative restrictions are applied only to pesticides imports due to safety requirements and storage facilities. except for military procurement Prohibited. Products subject to import prohibition Product Armaments and ammunitions Firecrackers Illicit drugs Live pigs and pig meat Printed materials Right hand drive vehicles Used motorcycle tyres Used footwear and leather bags Measure Prohibited. there are.

baled cotton and seeds. F. composition. The Government signed a contract with the Société Générale de Surveillance (SGS). citrus and rose plants and seed. Inspections The Annex to the Prakas of Regulations on the Implementation of Pre-shipment Inspection Services by the Ministry of Economy and Finance stipulates the rules and regulations of the pre-shipment inspection. ingredients and directions for use if necessary. Also. Cambodia requires a Certificate of Good Manufacturing Practice in accordance with WHO Standard Guidelines. Cambodia Investment Guide 2002 .] The current pre-shipment contract between the Cambodian Government and SGS is applied to shipments valued at US$ 4. producer name and address. and onion seeds require a phytosanitary certificate. Valuation is based on procedures consistent with WTO requirements. Import requirements For imports of agricultural inputs and pharmaceutical products. petroleum products.000 or more free on board (f. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 13 of 48 .000 or more must be reported to local office of SGS. medical equipment and cosmetic products. Pre-shipment inspection is exempted for the categories listed in box 1. The Ministry of Commerce is responsible for inspecting the implementation of these regulations and repressing frauds and violations. quality control. The importer will present the SGS documents to relevant customs office and pay due taxes upon the arrival of the goods in Cambodia. Imports of live animals and animal sub-products require a health certificate and sanitary and phytosanitary inspection.o.b. Imports of some agricultural goods including fruit and vegetables.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ D. users’ guidelines. Manufacturers and service providers are required to have product labels in Khmer language detailing ingredients. batch number. source. Areas of operation include marinerelated issues. quantity. foodstuff labelling must indicate clearly name of goods. Goods worth less than US$ 4. a Swiss company. Inspection of the shipment will be conducted by the local office which then forwards the report and all documents to SGS Cambodia. the Law on the Management of Quality and Safety of Products and Services was adopted. agricultural products and lost adjustment services.). E. Imported goods with declared value of US$ 5. manufacturing date and expiration date along with other requirements which guarantee the safety and health of consumers prior to their commercialization. [Sources. Packing and labelling requirements In 2000.000 are valued by the Cambodian Customs and Excise Department. execution of regulations concerning quality. Cambodia Import Export Inspection and Fraud Repression Department (Camcontrol) is the agency in charge of inspections of import/export goods. to conduct all pre-shipment of imported goods into Cambodia. production and expiration dates. safety and trademarks of food and consumer goods except medicines.DFDL/Mekong Law Group.

The Draft Customs Law was approved by the Council of Ministers and shall be adopted by July 2004 by the National Assembly. Goods imported for government use under government order.) value. Gifts and supplies to diplomatic and consular missions and to agencies related to any United Nations Organization imported for their own needs.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Box 1. charities and recognized humanitarian organizations. General The Law on Import and Export Duties. Ammunition. 1989. except for some products subject to minimum customs values. Goods exempted for pre-shipment inspection • • • • • • • • • • • • • • • Precious stones and precious metals.//www. The Draft Customs Law stipulates that the customs valuation of imported goods is based on the transaction value which is the price paid for goods when sold for export to Cambodia. Cambodia is in a transitional period regarding the phasing out of its minimum customs value. Gifts from foreign Governments or international organizations to foundations. Cambodian Customs and Excise Department 6 Norodom Boulevard Phnom Penh Cambodia E-mail: customs@camnet. Pre-shipment inspection fees can amount up to 0. insurance and freight (c. II. Live animals.kh URL: http.80 per cent of f. G.i. provides the legal basis for the implementation of customs tariffs. Currently Cambodia is using a reference price database as guide for appraising value declaration. TARIFF SCHEDULE . Customs valuation At present.kh/customs/ _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 14 of 48 .camnet.30 per metric ton.f.b. paragraph 101. Parcel post or commercial samples. value of the goods. Contact point. Current newspapers and periodicals. Explosives and pyrotechnic products. WT/ACC/KHM/21.o. The Cambodian Customs and Excise Department is responsible for the imposition and surveillance of import tariff schedules. Household and personal effects. Grants in kind. Scrap metals. and Temporary admitted goods (inward processing for export) Source: WTO Report of the Working Party on the Accession of Cambodia. 15 August 200. Cigarettes.com.com. except for bulk petroleum products at US$ 0.CUSTOMS A. weapons and implements of war. Failure to comply with the pre-shipment inspection results in a penalty of 7 per cent of the cost. Objects of art.

Myanmar. The seventh and eighth digits are harmonised to ASEAN practice. Exclusion List (EL): sensitive goods that are temporarily excluded from the Inclusion List. _______________________________________________________________________________________________________ 4 Part Two: Selling to Cambodia 15 of 48 . will be reduced to 0-5 per cent by the year 2010 for Cambodia. • 0 per cent for goods that government policy provides not to collect duties. Customs duties There are five major duty rates for imported goods. 4. Cambodia offers preferential tariff rates to imports textile and apparel products of United States-origin. • 35 per cent for finished products and government protected goods. Under CEPT. including articles of artistic.4 The backbone of AFTA is tariff reduction through the mechanism of the common effective preferential tariff (CEPT). • 7 per cent for primary products and raw materials. and will be subject to zero or 5 per cent tariff rates within the following seven years. man-made fibre. the first year of implementation. including unprocessed agricultural products. For Cambodia. • 50 per cent for luxurious goods. Classification Cambodia is a member of the World Customs Organization and applies the eight-digit tariff nomenclature based on the harmonised system (HS). Under the Cambodia-US Agreement related to trade in cotton. 20. Lao People’s Democratic Republic. Inclusion List (IL): goods that will have zero or 5 per cent tariff rate by the deadline for each country. 3. goods are classified in four categories: 1. Malaysia. ASEAN Free Trade Area (AFTA) In 1999.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ B. non-vegetable fibre and silk blend textile and textile products. Cambodia joined AFTA that promotes intraregional trade among ASEAN members. General Exceptions List (GEL): goods that are not subject to tariff reduction or elimination for reasons of national security. Sensitive List (SL): goods that are given a longer time frame to transfer to the Inclusion List (2017 for Cambodia). human. 35 and 15 per cent had preferential rates (or CEPT rates) of 35. about 945 tariff lines with tariff rates of 50. including Cambodia. D. historic and archaeological values. tariffs on goods traded within the ASEAN region. C. which meet a 40 per cent ASEAN content requirement. animal and plant life and health. wool. Indonesia. 10 and 7 per ASEAN member countries are: Brunei Darussalam. In 2000. Thailand and Viet Nam. The Inclusion List of Cambodia consists of 3. the ASEAN countries have agreed to enact zero tariff rates on virtually all imports from the four newer ASEAN members. Singapore. which enjoy special rates as follows. By 2010-2015. • 15 per cent for machinery and equipment.114 tariff lines (around 46 per cent of total tariff lines). Philippines. 2. excluding vehicles. Cambodia. Under CEPT. 2007 is the deadline to transfer the items under the Exclusion List into the Inclusion List.

Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ cent. Transactions in foreign currency worth US$ 10. A fee of 15. Value added tax (VAT) is applied on imports from all sources on c. usually under joint venture arrangements with the National Bank. III. including purchases and sales of foreign currency. 1997. General Cambodia’s banking system was reformed in 1989 with the introduction of a two-tier system: the central bank and commercial banks. the national currency has been determined by the market since 1993. The full 2002 CEPT package for Cambodia is available at: http. foreign currencies can be freely purchased through the banking system. FOREIGN EXCHANGE REGIME A. except in the case of petrol and diesel. respectively. Foreign banks have also been allowed to participate in the market.org/2002_cept_bycountry. Import duties on products in the Inclusion Lists of Cambodia shall be eliminated not later than 1 January 2015. Currency convertibility The foreign exchange regime was liberalized using the market-based exchange rate. as well as the regulations issued by the National Bank of Cambodia. There are no charges other than regular customs duties.//www. C.f. and is freely convertible.aseansec. March 2003] There are two exchange rates: official and market rate. Under the Law on Foreign Exchange. Private commercial banks have been established as limited liability companies. Importers are allowed to keep the foreign exchange proceeds from their trading activities. 1997. B. The Riel. whereas the market rate is frequently used in exchange transactions.1 per cent on the value of all imported goods.02 per litre for petrol. where Cambodia imposes a charge of US$ 0. The official rate is adjusted daily by NBC to keep the spread between the two rates less than one per cent. however.000 Riels (approximately US$ 4) is charged per import declaration. The official rate applies mainly to transactions made by the Government and State-owned enterprises. specifically including the purchase and sale of _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 16 of 48 . will be allowed for import duties on some sensitive products which will be eliminated not later than 1 January 2018.04 for diesel. value including customs duties and excise taxes whenever applicable. Taxes and surcharges The Cambodia Import-Export Inspection and Fraud Repression Department (CAMCONTROL) collects a fee of 0.000 or more have to be declared. The National Bank of Cambodia (NBC) is the central bank in charge of formulating and implementing Cambodia’s monetary policy. Foreign exchange allocation According to the Law on Foreign Exchange. [Source: IMF Country Report.i. Flexibility. all foreign exchange transactions. and US$ 0. The Law on Foreign Exchange specifically States that there are no restrictions on foreign exchange operations.htm E. are permitted through authorized intermediaries without restriction.

D. Money and finance measures There are no special requirements for the settlement of trade transactions. These intermediaries. However. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 17 of 48 . three foreign bank branches. Ltd. the law requires that only authorized intermediaries perform these transactions. are required to report to the National Bank of Cambodia any transactions in excess of US$ 10. Province of China) Private (Korean) Private (Malaysian) Private (Thai) Private (Cambodian) Private (Malaysian) Private (Cambodian/Canadian) Private (Singaporean) Private (Hong Kong. China) Private (Cambodian) Specialized (State-owned) Specialized (Cambodian) Specialized (Cambodian/Canadian) Specialized (Cambodian/Japanese) Source: IMF Country Report. There are also a large number of micro finance institutions (around 90) in Cambodia. There is no restriction regarding foreign ownership of banks. Union Commercial Bank Vattanac Bank Rural Development Bank ACLEDA Bank Peng Heng SME Bank Cambodia Agriculture Industrial Specialized Bank Ownership/status State-owned Foreign branch (Thai) Foreign branch (Malaysian) Foreign branch (Taiwan. Banking Under the Banking and Financial Institution Law (1999). Singapore Banking Corp. providing credit and promoting savings among their members. Currently. legally recognized banks in Cambodia. An Box 2. Maybank First Commercial Bank Advanced Bank of Asia Ltd. importer has to open an account with a commercial bank. E. The Law on Banking and Financial Institutions guarantees foreign banks equal rights and obligations to local banks. Major commercial banks in Cambodia Bank Foreign Trade Bank Krung Thai Bank Public Co.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ foreign exchange and transfers of all other types of international settlements. nine locally incorporated commercial banks and four specialized banks (see box 2). there are 17 banks including one State-owned bank. March 2003. all private commercial banks are required to obtain a licence from NBC.000. Cambodia Asia Bank Cambodia Commercial Bank Cambodia Mekong Bank Cambodia Public Bank Canadia Bank Ltd.

citrus and rose plants and seed. The Ministry of Health prescribes standards. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 18 of 48 .camnet. Imports of some agricultural goods including fruit and vegetables. distribution and labelling requirements for medicines. MARKETING AND DISTRIBUTION A.com. Pharmaceutical products are required to undergo laboratory testing in Cambodia for the conformity of the samples prior to registration. while a health certificate and sanitary and phytosanitary inspection is needed for imports of live animals and animal sub-products.kh/customs/ . Market regulations The metric system is commonly used in Cambodia. Mines and Energy is in charge of the overall policy development of standardization and certification. B. For many products. Special requirements A Certificate of Good Manufacturing Practice is required for imports of agricultural inputs and pharmaceutical products. The Standards Office in the Technical Department of the Ministry of Industry. Cambodia is expected to enact a new Law on Industrial Standards in 2004 which will provide for the establishment of a Department of Industrial Standards. imported goods are subject to the same inspection process as domestically-produced goods.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ IV. Under the current legislation. Documents required for imports Document Bill of lading/Airway Bill Certificate of origin Commercial invoice Customs declaration form Import licence Insurance advice Packing list Number of copies 3 1 1 3 4 1 1 Body concerned Shipping company/airline company Ministry of Commerce Exporter Custom Department Concerned ministries Insurance company Exporter Source: http. Product standards Cambodia joined the International Organization for Standardization (ISO) in January 1995 and ratified the ASEAN Framework Agreement on Mutual Recognition Arrangements. it is mandatory to have labelling. B. V. baled cotton and seeds and onion seeds also require a phytosanitary certificate.//www. instructions or warnings in Khmer language. although some traditional weights and measures are also used. DOCUMENTS A.

Over the past decades. There is also a railway system that runs from Phnom Penh to Poipet along the Thai border and from Phnom Penh to Sihanoukville. On the Mekong River. The two major waterways are the Mekong and the Tonle Sap rivers. while Asian Highway AH11 starts in Vientianne (Lao People’s Democratic Republic) and finishing in Sihanoukville (Cambodia). there is also the second main port of Cambodia.165 km. Sihanoukville and Siem Reap. Asian Highway AH1 starts in Izmir (Turkey) and ends in Tokyo (Japan).//www. Phnom Penh. plant quarantine. the railway system has degraded and the Government has planned upgrading projects which are pending international financing.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Sanitary and phytosanitary measures are based on the Law on the Management of Quality and Safety of Products and Services (2000) while other sub-decrees concerning each particular sector such as animal and animal products. Road transport carries out around 90 per cent of the total volume of long distance motorized surface transport in Cambodia. RN7 and part of RN6 are part of Asian Highway AH11 (map). The main port is Sihanoukville which is the only deepwater seaport of the country. The national road network is divided into two classes of roads with a total distance of 4. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 19 of 48 . The crossings are at Prum (Pailin City)-Ban Pakkard.kh/laws_regulation/prk335-moc_expiry_date. C. With regard to Quality control. Port facilities and trading route Cambodia can be accessed by road.gov. International airlines fly regularly into Phnom Penh and regional airlines into Siem Reap. food hygiene are currently being drafted. while RN 4. CAMCONTROL focuses its efforts on the enforcement of quality and safety of products and services through the establishment of food standards and specification and labelling requirements. by waterways or by sea. Importers or exporters of food products are required to obtain a clearance from the Customs Department that will issue an expiry date certificate see http. In November 2003.htm. The Prakas on Measures Against Food Products Devoid of Appropriate Packaging Label issued in 1999 by the Ministry of Commerce requires detailed labelling of food products circulated in Cambodia. and Choam Anlong Veng-Sa Ngam. The RN1 and RN5 are part of Asian Highway AH1.moc. The national main roads are numbered RN1 to RN7. The Mekong River is an important route for cross-border transportation between Cambodia and Viet Nam as this river runs through Viet Nam before reaching the South China Sea. There are also eight airports to serve domestic flights. CAMCONTROL is the national contact point for Codex Alimentarius. three new border points of entry have been opened on the Cambodian-Thai border under an agreement between the two Governments. Cambodia has three main airports at Phnom Penh (Pochentong airport). Duang-Ban Laem. by air.

warehousing and managing the distribution of fertilizers and agricultural inputs obtained from foreign donations. • • • • • International competitive bidding . fishery products. GTC has not engaged in rice export activities and has focussed only on domestic rice trade and distribution. Ministry of Economy and Finance. However. Forestry and Fisheries. Government procurement Cambodia’s procurement policies are open and well defined under government regulations. and open public competition is not required. Material and Equipment Company. State trading organizations There are 11 State trading organizations engaged into import and export activities of rice. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 20 of 48 . and open to all bidders through public announcement. GTC is an autonomous body in respect of administration and finance. B. is a merger of three former State-owned companies. The Company’s main activities are purchases and sales of agricultural products (fertilizers. GOVERNMENT PROCUREMENT AND STATE TRADING ORGANIZATIONS A. and Ministry of Commerce.open competition is not required. and open to all bidders through public announcement.applied to projects below 200 million Riels for civil work and 100 million Riels for goods. rubber. The GTC manages Cambodia’s national reserve of rice through sales and purchases at market prices. and Agricultural Product Company. Domestic competitive bidding .applied to projects above 200 million Riels for civil work and 100 million Riels for goods. The Government plans to divest its share in the Agricultural Inputs Company by 2006. foreign bidders could participate. pesticides. The Green Trade Company (GTC). The Agricultural Inputs Company was established in February 1999 and is managed by a board of directors from the Ministry of Agriculture.required to obtain a minimum of three quotations from at least two different countries. Since July 2001. Cambodian Food Company. A new government procurement regulation was introduced in 1995 under the Sub-decree 60. pharmaceutical products and agricultural equipment. seeds and agricultural equipment). Procurement is carried out through either of the following methods. International shopping . GTC receives no supports from public funds beside the initial injection of 30 billion Riels by the Government.open competition is not required. or Direct purchase or direct contracting . Domestic canvassing . The State trading organizations operate in full accordance with private business practices. established by the Government in 1998. fertilizer. foreign bidders could participate. The institution is under the technical supervision of the Ministry of Commerce and under the financial supervision of the Ministry of Economic and Finance.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ VI.

Neak Loeung Ferry. seven State-owned rubber plantations are being considered to become public enterprises. export. Agricultural Inputs Company Ministry of Public Works and Transport Sihanoukville Port. Krek Rubber Plantation Company. Snuol Rubber Plantation Company. An inter . and Fisheries Chup Rubber Plantation Company. Boeung Ket Rubber Plantation Company. Pem Chang Rubber Plantation Company. Most privatized enterprises are in the manufacturing. Prek Kdam Ferry Phnom Penh Municipality Phnom Penh Water Supply Ministry of Industry. As of April 2000. page 59. Laboratory of Construction. Memut Rubber Plantation Company. 20 sold off and 152 leased to private investors. A total of seven rubber companies remain State-owned until 2006 and 13 public-service enterprises will remain as State-owned enterprises at the completion of the privatization programme. Forestry and Fisheries. agriculture and commerce sectors. C.ministerial committee has been set up to oversee the privatization process under the leadership of the Ministry of Economy and Finance. Privatization process The first phase of privatization was carried out from 1991 to 1993 with the intention of attracting foreign investment. transport and equipment company is under the technical management of the Ministry of Agriculture. Royal Railway of Cambodia. 15 August 2003. Cambodia Pharmaceutical Enterprises Source: WTO Report of the Working Party on the Accession of Cambodia. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 21 of 48 . The second phase started in 1995. Phnom Penh Port. 177 enterprises have been privatized of which five were jointventures. Forestry. WT/ACC/KHM/21. Mines and Energy Electricity of Cambodia (EDC) Ministry of Economy and Finance Rural Development Bank Ministry of Commerce Green Trade Company Ministry Joint-venture enterprises (51 per cent State-participation) Ministry of Commerce Camintel Company.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ In the rubber sector. The rubber import. The Government would remain the owner of the real estates while the boards of directors would gain full autonomy in management and operations. Table 6. List of State-owned enterprises (as of March 2003) Name of enterprise State-owned enterprises Ministry of Agriculture. Kampuchea Shipping Agency and Broker (KAMSAB). Chamkar Andaung Rubber Plantation Company.

7 85. although lately the composition of its imports has shown a tendency to diversify.6 41.4 228.9 40.8 39. Direction of imports (Million of US$) Country Singapore Thailand Hong Kong.1 46. Laboratory of Construction. List of enterprises to remain in State ownership upon completion of privatization programme Ministry Ministry of Commerce Ministry of Industry.6 79.9 78.4 2001 723.9 109. Table 8.0 73. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 22 of 48 . Prek Tamak Ferry. 15 August 2003.5 12.0 147. Prek Kdam Ferry Agriculture Inputs Company (Whether the seven rubber State-owned enterprises are to be kept State-owned is being discussed) Ministry of Agriculture.5 112. Neak Loeung Ferry.6 19.8 76.5 38.2 32.0 116.0 1999 98. Mines and Energy Office of the Council of Ministers Ministry of Economy and Finance Ministry of Public Works and Transport Name of enterprise Green Trading Company Electricity of Cambodia (EDC) Printing House of the Office of the Council of Ministers Rural Development Bank Sihanoukville Port.9 174.3 37. Kampuchea Shipping Agency and Broker (KAMSAB).2 16. VII.5 129.3 68.4 64.7 95.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Table 7.5 28.1 183.3 91.6 19.9 Source: On the basis of data from the Ministry of Commerce.8 90.6 84. Royal Railway Station. WT/ACC/KHM/21.1 49.3 2000 106.5 50.9 58.8 254. Forestry and Fisheries Source: WTO Report of the Working Party on the Accession of Cambodia. Phnom Penh Port.0 67. China Viet Nam China Taiwan Province of China Republic of Korea Japan Malaysia United States of America France Indonesia 1998 95.5 86.0 221. as listed in tables 8 and 9.0 168.8 71.7 126. page 60. PRINCIPAL IMPORT ITEMS Cambodia principal trade partners are mainly from the Asian region.0 193.1 49.6 9.

3 22.org/afta.us-asean.4 58.wto.8 78.asp WTO Fact sheet. not knitted or crocheted Plastics and articles thereof Sugars and sugar confectionary Man-made filament Cotton Others Total Imports c.0 122.5 40.7 39.aseansec.0 25.htm Cambodia Customs Homepage.6 67.//www.gov.//www.4 102. http. 21 November-4 December 2003.3 16.7 1127.6 23.7 71. Print Edition.asp?PageID=Startup+Procedures per cent3AMore CAMCONTROL.9 313. roles and responsibilities http://www.2 61.1 12.0 30. TRAINS.9 27.moc.8 163.2 34. Cambodia Development Council: http.org/english/thewto_e/acc_e/factsheet_cambodge_e.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Table 9.htm Ministry of International Trade and Industry of Malaysia. Home page http. earths and stone plastering materials.4 155.1 73. WT/ACC/KHM/21. http.camcontrol.503.5 76.417.5 111. sulphur.2 74.kh/Information.5 28.3 207. lime and cement Articles of apparel and clothing accessories.miti. _______________________________________________________________________________________________________ Part Two: Selling to Cambodia 23 of 48 .1 44.cambodiainvestment.my/trade/mtmain.//www.6 Source: On the basis of data from the Ministry of Commerce.3 14.0 35.5 9.org/14183.5 2000 225.unctad.8 40.8 2001 279.0 129. March 2003 Ministry of Commerce.7 51. Cambodia.1 1999 109.1 180.4 304. Country Report August 2003 – Cambodia IMF Country Report Cambodia. Composition of imports (Million of US$) Imports Man-made staple fibres Petroleum products Knitted or crocheted fabrics Tobacco and manufactured tobacco substitutes Nuclear reactors. http.5 67.5 25. US-ASEAN Business Council Home page.//www.3 47.kh/mission2. http://www.9 84.9 14.htm Phnom Penh Post.//r0.4 35.htm WTO Report of the Working Party on the Accession of Cambodia.7 17.3 47. 1998 50.8 9. UNCTAD. machinery and mechanical appliances Vehicles and parts Electrical machinery and equipment Pharmaceuticals products Paper and paperboard Other made up textile articles Salt.3 29.kh/depts/green_trade/gb_website.3 53.3 19.gov.0 23.org/trains/2003 per cent20Cambodia. http.9 19. boilers.i.f.3 70.6 330.8 23.html Economist Intelligence Unit.camnet.com.9 159.1 1.gov.227.//www.htm.5 1.1 36.3 41.9 72.2 292.2 87.//www.1 33.3 23.6 38. Country Profile 2003 – Cambodia Economist Intelligence Unit.kh/customs/ Cambodia Investment Board.9 28.2 1.gov.8 21.6 9. References for part two: Selling to Cambodia AEAN Homepage. 15 August 2003. http.

page 36 and http.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Part Three BUYING FROM CAMBODIA I.htm.000 Export licence Export licence Concerned agency Ministry of Agriculture. October 13 1994. the Government promotes export activities to encourage employment and generate foreign exchange. Fisheries and Forestry Ministry of Agriculture. B. as well as its archaeological and cultural heritage.//www. Licensing. 1995. raw gold Vehicles and machinery for military purposes Weapons. • The sale and export of solidified rubber should also be authorized by the Government. Fisheries and Forestry Ministry of Commerce Ministry of Agriculture. However there are some exceptions such as. REGULATIONS AND PROCEDURES A. Export approval In general. C. the limited licensing system in place is for protection of Cambodia’s environment. 65 on the Annulment the Existing Procedure for Timber Export. are allowed to freely engage in import-export activities as stipulated in Law on Commercial Regulations and Commercial Register. explosives and ammunitions Measure Licence Export monopoly granted to State enterprise Export licence to EU Export licence Export licence Licence as long as declared items above US$10. Forestry and Fisheries. quotas and prohibitions In general. therefore an application to export timber has to be filled in and authorized by the First and Second Prime Minister according to the Decision No. The registration fee costs about US$ 70 for both national and foreign companies. General In general. WT/IFSC/W/12/Add. Most exports only require an export declaration made into 3 copies to accompany with the invoice and packing list. as stipulated in the Anukret on Conferring the Right to Sell and Export Rubber Products to the Ministry of Agriculture. Any trading companies of Cambodian or foreign nationalities. Products subject to export licensing Product Articles of processed wood Fish Footwear Live animals Pharmaceuticals and medical materials Precious stones.org/english/thewto_e/acc_e/factsheet_cambodge_e. registered with the Ministry of Commerce. Table 10.wto.1. • The export of timber products is controlled and very restricted. June 18 1994. Other export restrictions and prohibitions are detailed in the next section. EXPORT POLICY. no approval is required to exports goods from Cambodia. _______________________________________________________________________________________________________ Part Three: Buying from Cambodia 24 of 48 . Fisheries and Forestry Ministry of Health Central Bank of Cambodia Ministry of National Defence Ministry of National Defence Source: WTO Diagnostic Trade Integration Study for Cambodia.

Commercial Invoice and Export Licence for Garments by the Cambodian Ministry of Commerce. EU granted the country the regional cumulation and derogation benefits offered by the EU Preferential Rules of Origin. • Cambodian Certificate of Origin Form A. Youth and Sports Ministry of Agriculture. Canada and Cambodia signed a Memorandum of Understanding under the Canadian Least Developed Countries Market Initiative which grants tariff-free and quota-free access for textile and apparel products originating from Cambodia.1. provided Cambodia with unlimited access to the EU market for Cambodian textiles exports and simplifies documentary requirements for such trade. and • Export Licence. page 36. page 36. Fisheries and Forestry Source: WT/IFSC/W/12/Add. Products subject to export prohibitions Product Cambodian antiques Illicit drugs Logs and unprocessed timber Printing materials Sandal wood Sawn timber Measure Prohibited Prohibited Prohibited Prohibited if negative impact on society Prohibited Prohibited Concerned agency Ministry of Culture Ministry of Health Ministry of Agriculture. According to the regulations concerning Certificate of Origin. Mines and Energy/ Ministry of Commerce Source: WT/IFSC/W/12/Add. _______________________________________________________________________________________________________ Part Three: Buying from Cambodia 25 of 48 . With Cambodia's entry into ASEAN. Table 12. Fisheries and Forestry Ministry of Agriculture. textile and apparel products originating from Cambodia have to satisfy. textile manufacturers should obtain the following documents from the Ministry. until the expiry of the Agreement at the end of 2002. • Commercial Invoice. Mines and Energy/ Ministry of Commerce Ministry of Industry. The Canada Customs Revenue Agency may also conduct verification of the Rules of Origin by means of a verification visit. (a) rules of origin. Fisheries and Forestry Ministry of Education. In order to be eligible for the LDC tariff rates. Products subject to quota Product Rice Textiles and garments Textiles and garments Quota Export quota to the United States Export quota to EU Measure Concerned agency Ministry of Agriculture. (b) certification and (c) direct shipment. letter or questionnaire. European Union (EU) The EU-Cambodia Textile Trade Agreement signed in 1999.1. Documentary evidence under trade agreements and preferential schemes Canada In January 2003. D. Fisheries and Forestry Ministry of Industry.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Table 11. which has resulted in the EU-Cambodia Textile Trade Agreement being prolonged until the end of 2004.

non-cotton vegetable fiber and silk blend textiles and textiles products. Cambodia and the United States of America signed an agreement relating to trade in cotton. Details on the broad categories are available at the United States Office of Textiles and Apparel (OTEXA). It permits an annual quota increase of 14 per cent if the United States finds that Cambodia is in "substantial compliance" with its labour laws and internationally recognized core labour standards. a quota system for export of garments from Cambodia into the United States was established for 13 broad categories of garments. • Exporter registration in Cambodia with the general system of preferences (GSP) Trade Preferences System Department of the Ministry of Commerce. and • Cambodian Certificates of Origin Form A (if raw materials are imported from ASEAN member countries. Japan In December 2002. especially duty-free and quota-free treatment.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ The EU-Cambodia textile agreement allows quota-free access to the EU market. rules for transportation (direct consignment) and rules of cumulative origin for certain processed products. _______________________________________________________________________________________________________ Part Three: Buying from Cambodia 26 of 48 . wool. Under this agreement. man-made fiber. the United States Government offered a 5 per cent increase. In December 1999.000 Yen or of goods whose origins are evident. United States of America In 1999. The latter are included in the list available from the Japan Ministry of Foreign Affairs. The United States-Cambodia textile agreement. To receive this preferential tariff treatment Cambodian goods must be accompanied by a GSP Form A issued by Cambodia Trade Preferences System Department. Application procedure with the Cambodian Ministry of Commerce is detailed in Prakas No. Japan’s GSP scheme also applies certain origin criteria. 1999. 1347/MOC/PRK and Prakas No. was also the first bilateral textile trade agreement containing a labour provision. The GSP Form A is not required for consignments of customs value not exceeding 200. nine categories of the Cambodian textile products must go through doublechecking (surveillance) in order to certify Cambodian origin of the products. 3413/MOC. the United States eased its quota restrictions by another 9 per cent in addition to the annual increase of 6 per cent. And in 2001. Details of the agreement are available at the trade section of the European Commission. The list is available from to the Japan Ministry of Foreign Affairs. a copy of the certificate of origin verifying the origin should be submitted to the Ministry of Commerce). The new extension covers the period from 31 December 2001 to 31 December 2004. Cambodian textile manufacturers need the following documents in order to export to the EU market. • Export Licence issued by the Ministry of Commerce. Therefore. Japan revised its GSP scheme by expanding its coverage. the total textile exports from Cambodia for 2002 were 15 per cent higher than in 2001. However.

II. laboratory testing of pharmaceutical products is required prior to registration to check the conformity of the samples. regardless of value. etc. Textiles exporters should apply to the Ministry of Commerce for the following documents prior to any shipment to the United States.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Textile products of Cambodian origin gain access to the United States market through the United States GSP. and authorizes the shipment to be charged against any applicable quota. • Fish: live. by the Government of Cambodia or by its representative. describes the shipment. The following products are subject to 10 per cent export tax payable to the Ministry of Finance: • Live horses and bovine animals. • Raw hides.1 per cent of export value while contractors of the Kampuchea Fish Import and Export Company (KAFIMEX) collect a 4 per cent fee on all fish transported in the province. skins and semi processed skins. boxes. CAMCONTROL charges an inspection fee of 0. casks. which describes the shipment and includes the visa number assigned to the shipment. this scheme also means the exclusion of these textile products from the list of goods that are subject to low or zero tariff rates. fillet. and properly marked commercial sample shipments valued at US$ 800 or less. EXPORT CHARGES There is no export tax as such but garment exports are under the garment visa system put into place by the Ministry of Commerce which decides on the visa. Other requirements In Cambodia. KAFIMEX also collects an export licence fee of US$1 of all live fish export at Pochentong Airport. Additionally. chilled. • An “ELVIS transmission” is a message. • Export visa. • A visa is required for each shipment of textiles. and • Wood cases. certifies the country of origin. except for merchandise imported for the personal use of the importer and not for resale. _______________________________________________________________________________________________________ Part Three: Buying from Cambodia 27 of 48 . sent electronically to the United States Customs Service. Under the ELVIS (Electronic Visa Information System) Visa Arrangement between Cambodia and the United States. • Semi processed wood. D. • Veneer sheets and sheets for plywood and veneer panels. a "visa" issued by the Government of the country of origin of the textile exported to the United States. However. fresh.

strips for flooring Export tariff (per cent ad valorem) 10 10 10 50 50 50 10 10 5 Source: WT/ACC/KHM/21. 44.11.02 29.kh/customs/ .02. SETTLEMENT OF BILLS. 44. Minimum acceptance fee is 0. a collateral of land or building. INCLUDING INSURANCE Document Bill of lading/Air waybill Certificate of origin Commercial invoice Customs declaration form GSP Insurance certificate Packing list Number of copies 8 8 8 3 4 3 8 Body concerned Shipping company/airline company Ministry of Commerce Exporter Customs Department Ministry of Commerce Insurance company Exporter Form number Cost 15.01.01. nitrated or nitrated derivatives of a cyclic alcohol* Nitril-function compounds* Natural rubber in primary forms or in plates.02. prepared fish and fish products Live crustaceans and molluscs and products thereof Cannabis. 03. _______________________________________________________________________________________________________ Part Three: Buying from Cambodia 28 of 48 . sulphonated.04. Veneer sheets and sheets for plywood. 01. however importers are required to pay 0.06. and a good credit history. 44.02.//www. table 8. 03.05.04.01. 03.03.1 per cent. IV.000 Riels Form A Source: http. coca. 44.00. The products in these groups require a licence in order to be exported.09 Description of good Pure bred breeding bovine animals and swine Live fish.com. wood charcoal Sawn and shaped wood.26 40.05 03.50 29. * Categories included for the sake of formal completeness. DOCUMENTS. 03.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Table 13.06. 03.04 44. Export tariffs HS heading 01. cannabis resin.07 12.05.camnet. LETTERS OF CREDIT The Foreign Trade Bank provides letter of credit to Cambodian importers under the condition of a 20 per cent deposit. extracts and dyes. opium* Halogenated.03 03. 13. 13. III.03. 44. 44.2 per cent fee due to the perceived country risk.08.10.07 44. sheets or strips and rubber waste Unprocessed and semi-processed wood. 40.

0 20.9 1.6 4.0 20.9 9.0 28. According to the Anukret on Conferring the Right to Sell and Export Rubber Products to the Ministry of Agriculture.4 12.7 13.3 2000 739.8 9.8 1999 493.5 23.1 6.7 6.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ V.9 4.5 19.0 25. PRINCIPAL EXPORTS Cambodia’s main export partner is the United States with which it has the special agreement for garments and textiles.7 8.2 3.5 26. Fish for exports should be sold through KAFIMEX which in turn grants licences to five export traders to handle and transport the fish across the border to Thailand’s Aranyaphatet fish market.8 71.6 66.1 76.5 18.0 37.7 18.6 9.8 10.0 10.3 11.6 Source: On the basis of data from the Ministry of Commerce _______________________________________________________________________________________________________ Part Three: Buying from Cambodia 29 of 48 . Forestry and Fisheries is the only agency in charge of selling and exporting rubber products.4 10.1 208.9 42. Forestry and Fisheries on 13 October 1994.5 179.2 7.0 27. China United Kingdom Germany France Singapore Netherlands Viet Nam China Japan Ireland Canada Malaysia Thailand 1998 292.3 7.7 21. Table 13. there are a few State-owned trading companies that hold exclusive rights to some trading activities.8 52. Cambodia’s Ministry of Agriculture. Direction of exports (Million of US$) Country/area United States of America Hong Kong.9 6.3 98. Fisheries sector is dominated by the Kampuchea Fish Import and Export Company (KAMFIMEX).3 126. STATE MONOPOLY IN EXPORTS Although Cambodia’s economy is liberal. The Ministry could use 30 per cent from the proceeds of the sales to import equipment necessary for rubber production.2 81.7 35.7 12.2 132.2 16.7 24.7 41.7 262. VI.3 10.8 22.7 11.9 2001 832. KAMFIMEX holds the exclusive rights to fish exports.8 40.

4 2.091.9 296.0 1.1 2. WT/IFSC/W/12.8 883.//canadagazette. WT/ACC/KHM/21.gov.7 Source: On the basis of data from the Ministry of Commerce.3 28. _______________________________________________________________________________________________________ Part Three: Buying from Cambodia 30 of 48 .5 37. References for part three: Buying from Cambodia Canada Gazette.9 25.kh/laws_regulation/prk3416-99-moc_co. Ministry of Commerce.9 2.kh/laws_regulation/prk1437-99-moc_ci. Commercial Invoice and Export Licence for Garments http.8 2001 1.3 7.htm .6 3.7 4.8 1.1 7.1 171.5 4.moc.4 603. 1 January 2003.9 2000 1.1 and WT/IFSC/W/12/Add.5 2. http.2 0.1 73.1 88.198.2.//www.gc.012.2 9.1 175.0 1.260.5 23.0 31.moc.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Table 14.9 90.5 1.gov.html Ministry of Commerce.141.0 0.ca/partII/2003/20030101/html/index-e. Part II.htm WTO Report of the Working Party on the Accession of Cambodia. WT/IFSC/W/12/Add. Prakas on the Issuance of the Certificate of Origin. Composition of exports (Million of US$) Item GSP Exports Rubber Sawn timber Logs Other domestic exports NR carrier procurements Fish products Agricultural products Total Re-exports TOTAL 1998 392.0 169. Commercial Invoice and Export Licence for Garments http.7 3.373. WTO Diagnostic Trade Integration Study for Cambodia.1 2.4 26.2 4.0 712. 15 August 2003.0 899.5 2.9 1999 564. Prakas Amending and Supplementing the Issuance of Certificates of Origin.//www.6 1.4 6.1 4.

4 4.7 4. the main investors in Cambodia were Malaysia. the Council of Ministers approved a Draft Amended Investment Law. excluding the benefits deriving from membership in future customs unions or free trade areas and agreements relating to taxation. construction and foreign trade. the United Kingdom. Germany. Cuba. Foreign entities or individuals are allowed to lease land for 70 years renewable. Foreign investors in Cambodia enjoy national treatment. Cambodia has signed investment promotion and protection agreements with China. The new Draft Investment Law should be adopted shortly. 1994 of Cambodia establishes an open and liberal environment for foreign investors.4 1. Between 1994 and 2001. 1994. Switzerland.5 3. Table 15. Singapore. in a non-discriminatory manner and accompanied by prompt. China Republic of Korea Canada Indonesia Australia United States of America Millions of US$ 1. Thailand and the United States of America.1 1 _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 31 of 48 .503 826 310 176 156 131 120 112 90 52 48 41 38 Percentage 41. Malaysia. China. France.4 1. Singapore.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Part Four INVESTING IN CAMBODIA I. Province of China. as well as certain areas of transport.2 3. The agreements preclude expropriations except when undertaken for a lawful or public purpose. nor to impose price controls on the products or services used by those investors who have received prior approval from the Government. and Hong Kong. Hong Kong. China. the Netherlands. the Republic of Korea. with the exception of the legal and accountancy sectors. According to the Constitution. adequate and effective compensation at a fair market value of the property prior to expropriation. Investment projects by country of origin Country Malaysia Cambodia Taiwan Province of China China Singapore Thailand United Kingdom. The list of total cumulative registered investment projects in by country of origin during this period is offered in table 15. In 2002. The Government commits not to undertake a nationalization policy. These agreements provide reciprocal national treatment to investors. except in when it comes to land ownership. FOREIGN INVESTMENT POLICY AND REGULATIONS The Law on Investment. the Philippines. only Khmer legal entities and citizens of Khmer nationality have the right to own land.2 3 2. Taiwan. 1993.4 8.3 1. Thailand.8 22. Most sectors of the economy are open to foreign investment. which would replace the Investment Law. The investment agreements also guarantee the repatriation of investments and provide for settlement of investment disputes via arbitration.

• 100 per cent foreign source of capital.8 100. The list of total cumulative registered investment capital by sector during this period is offered in table 16. 11/ANK/BK on BOT Contract)5.489 127 363 63 250 37 172 299 121 94 1.htm _______________________________________________________________________________________________________ 5 Part Four: Investing in Cambodia 32 of 48 . The CIB reviews investment applications and grants concessions to investors and investment projects.9 0. limited to only infrastructure projects (Anukret No. garment. foreign participation cannot be more than 49 per cent. II. For details on the hierarchy and definitions of Cambodian legal norms. agriculture and construction services. United States Commercial Service. An Anukret is a Sub-decree.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Country France Japan Other Total Millions of US$ 34 8 30 3.0 Source: Cambodia Country Commercial Guide.2 0. Types of investment The following forms of investment are authorized: • 100 per cent local source of capital. INVESTMENT PROCEDURES The Council for the Development of Cambodia (CDC) is the highest decision-making body of the Government in charge of the promotion and protection of private and public sector investment. The Cambodian Investment Board (CIB) is the CDC’s operational arm for private sector investment. sectors receiving the greater flows of investment capital were tourism. United States Commercial Service.676 Number of projects 642 44 337 13 35 23 80 74 12 11 58 854 Source: Cambodia Country Commercial Guide. • Joint-ventures. • Business cooperation contract (BCC). The CDC is chaired by the Prime Minister and composed of senior ministers from related government agencies. Between 1994 and 2001. • Build-operate-transfer (BOT). Table 16. Investment capital by sector Sector Industry Food Processing Garments Petroleum Wood Processing Footwear Agriculture Services Construction Telecommunications Tourism Total Millions of US$ 1. and • Other forms authorized by law.kh/Council_of_Jurists/z/Typolg.675 Percentage 0.bigpond.714 3. see http://www.com.

Subject to prior approval from relevant ministries. the investment project. 2429 Manufacture of psychotropic substance Prohibited for the psychotropic substances listed in table I. Industries open with restriction to foreign investors 1600 Manufacture of cigarette Only of export (100%) 1551 Alcohol Subject to prior approval from relevant ministries 1320 Exploitation of gemstones Subject to local equity participation 2691 Bricks made of clay (hollow. solid) and tile Subject to local equity participation 1531 Rice mill Subject to local equity participation 2029 Manufacturing of wood and stone carving Subject to local equity participation 1711 Silk weaving Subject to local equity participation IV. national policies Nil Nil III. Industries closed to both national and foreign investments 3698 Manufacture/processing of cultural items.A Manufacture related to defence and National defence policy securities II. Others NIL Source. 2021 Sawn timber. 80/ANK/BK on Measures Restricting Certain Investment Sector 1999. ISIC Remarks Sector/industry code (restrictions/requirements) I. Investment applications must be submitted to CDC including: • • A completed application form from the CDC duly signed by an authorized representative of the applicant. Prohibited in accordance with an international Production of toxic chemicals or utilization treaty. Manufacturing related services 2210 Publishing 2212 Publishing of newspaper. wood-based No new licence will be issued. plywood. 2411 DBSA production: Subject to prior approval from the Ministry of Toxic chemicals effecting health of health and related ministries. with a brief summary/profile of the investors. A letter stating the intention of the applicant to invest in Cambodia. of toxic agents.A Manufacture of firecracker and fireworks Subject to control N. Part Four: Investing in Cambodia 33 of 48 _______________________________________________________________________________________________________ . i. veneer. SMEs. Subject to specific details provided by the Ministry of Health and the psychotropic substances listed in tables II and III. Ministry of Commerce Any foreign investment in Cambodia requires the approval from CDC. journals and Subject to discussion with the Ministry of periodicals Information and Ministry of Culture and Fine Arts 2213 Publishing of record media 2219 Other publishing Foreign equity is restricted to maximum of 49% 2221 Printing 2222 Service activities related to printing 9213 Radio and television activities V.e. 2429 Manufacture/processing of narcotic drugs Prohibited 2927 Manufacture of weapons and ammunitions National defence policy N. Industries closed only to foreign investors. the following areas of restriction for private investment are listed below. the objectives and any special requests regarding the investment project. products utilizing local logs as raw materials. community and impacting to environment.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ According to the Anukret No.

and . Application fees for investment projects are detailed in the Anukret No.marketing capacity. Exemption of corporate tax up to 8 years starting from the year of first profit. including: .US$ 100 at the time of application submission. including an outline of the manufacturing flow process.human resources and managerial capacity. After submitting its investment application to CDC.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ • • • The constituent documents of the proposed investment enterprise.US$ 500 upon receipt of the investment approval. and . if any.US$ 200 at the time of application submission. These incentives cannot be transferred or assigned to any third party. 100 per cent export duty exemption. 6 The official online version is not complete. partially or wholly. • • If the investment project is less than or equal to US$1 million: . Non-taxation on the distribution of dividends or profits or proceeds of investment. in accordance with the existing laws of Cambodia. . whether transferred abroad or distributed in the country. applications for investment incentives should be submitted to CDC for approval. Private investment in Cambodia receives the incentives in the form of customs duty exemptions (see box 3).US$ 1. and . A five-year loss carry forward shall be allowed. 100 per cent import duty exemption for raw materials and other materials used for the investment project. the enterprise can file an appeal to CDC within 25 working days of receipt of notification to revoke or cancel. such as the Memorandum of Association and Articles of Association. If profits are reinvested in the country.technical capacity. INVESTMENT INCENTIVES According to the Investment Law 1994. III. such profits will be exempted from all corporate tax.000 upon receipt of the investment approval. A detailed study of the economic and technical feasibility of the investment enterprise. If the project is more than US$1 million: . privileges and incentives. 88 on the Implementation of the Law on Investment 6 as follows.financial capacity. and Details of the qualifications of the applicant. Investment incentives are as follows. _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 34 of 48 . . • • • • • • A corporate tax rate of 9 per cent (standard corporate tax rate is 20 per cent).

C.000 ha 1. 4. • Export-oriented (80 per cent of total products). • Provincial and rural development. Spare parts for the machinery and equipment referred to in (2) and (3). Projects in labour intensive industries. List of suggested areas of investment 1. Types of goods subject to customs duty exemptions 1. (4) and (5) above. in whole or in part. Projects located in a Special Promotion Zone. Customs duty exemptions A. 3. • Tourism industry. 6. 2. of taxes and duties. 3. B. the exemption from customs duties relates to the construction of buildings and factories and the first year of operation only. Other equipment used directly in the project other than administrative equipment.3 Poultry and eggs more than 10.000 heads 2. Investment in export-oriented projects with a minimum of 80 per cent of production designated for export. Machinery used directly in the production process. • Environmental protection. 2. Other areas entitled to receive investment incentives are as follows. Source: Anukret No.2 Dairy farming more than 100 heads 2. Tourism industry projects.2 All types of cash crops greater than 500 ha 1.1 Paddy farming greater than 1. Types of export goods entitled to 100 per cent export tax exemptions Finished products. Types of investment subject to customs duty exemptions 1. • Pioneer and/or high technology industries. • Physical infrastructure and energy. Investment in physical infrastructure and energy industry projects.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Box 3.3 Vegetables greater than 50 ha 2.1 Livestock more than 1.88 on the Implementation of the Law on Investment The following fields of investment are entitled to receive incentives including the exemption. and • Investments in a special promotion zone (SPZ) as shall be created by law. In the case of projects within (3). 5. 5. processing industries and agro-industry. Livestock production 2.000 heads _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 35 of 48 . Packaging equipment. transportation and distribution equipment. Crop production 1. 4. • Agro-industry and transformation industry. Raw materials and intermediate goods used directly in the production process. Construction materials for the project. • Job creation.

2 Fats and oils 4.2 Embroidery cloth mill 5.3 Sugar confectionery 4. Manufacture of chemicals and allied products Investment capital equivalent to US$ 1.000 and above 8.2 Aircraft and spare parts 14.7 Grain mill products 4.1 All types of chemicals including agricultural chemicals 9.5 Bicycles and motorcycles _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 36 of 48 .000 and above 7.000 and above 9.000 and above 13.8 Bakery products 4.000.000 and above 5.2 Office furniture 7. Manufacture of paper and allied products Investment capital equivalent to US$ 1.2 Paper 8.9 Animal feeding products 5. Manufacture of rubber and miscellaneous plastics Investment capital greater than US$ 500.000 12. Manufacture of apparel and other textile Investment capital equivalent to US$ 1.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ 3. Manufacture of transportation equipment 14.000.000.4 Equipment and means of rail transports 14.000.2 Plastics and other synthetics rubber 9.1 Hatcheries more than 2 ha 3.000 and above 7.5 Dairy products 4.000 14.1 Tree plantations for paper production and pulp mills 8.3 Manufacturing of building partitions and fixtures 8.5 Paints and allied products 10.000 11. Manufacture of fabricated metal products Investment capital equivalent to US$ 1.000.4 Meat products 4.1 Automobiles and spare parts 14.3 Floor covering mills 5.3 Paperboard mills 8. Manufacture of electrical and electronic equipment Investment capital greater than US$ 500.1 Household furniture 7.1 Beverages 4.1 Cotton weaving mill and thread mill 5. Manufacture of furniture and fixtures Investment capital equivalent to US$ 1.3 Drugs 9.6 Preserved fruit and vegetables 4.4 Paperboard containers 9.4 Other weavings 6.2 Shrimp farming and other aqua-culture production greater than 10 ha 4. Manufacture and processing of food and related products Investment Capital equivalent to US$ 500.3 Constructions and means of water transports 14. Fisheries 3.000 and above 4. Manufacture of leather and other products Investment capital greater than US$ 500.4 Cleaning products 9.000. Manufacture of textile mill products Investment capital equivalent to US$ 1.

newspaper). educational facilities of international standards. Mondul Kiri. 2. Krachie. 6. Kampot. Preah Vihear. Construction of roads and bridges and physical infrastructure construction including electric power and water production 16. All types of trading activities. 4. television. Siem Reap Province and Sihanoukville. Under the Draft Amended Investment Law. Medical complexes of international standards. Rattanakiri and Stung Treng Province. and other night clubs and massage parlours that are not located in international standard hotels. Region 4: Banteay Mean Chey. 1. karaoke. Region 4 would be the most disadvantaged and where investment is most encouraged. Kampong Thom and Pursat Province. 3. Production of machinery and industrial equipment Investment capital greater than US$ 1. 8.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ 15. Svay Reing and Takeo Province.000. Professional services. 9. Business centres. 5. Region 1: Phnom Penh. All forms of transportation services. 2002 In 2002. 7. _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 37 of 48 . Production and business activities to protect the environment 21. Incentives under the Draft Amended Investment Law. Kandal Province. Region 3: Batambang. except petroleum and natural gas. Kampong Chhnang. Region 2: Kampong Cham. Infrastructure for investment in the high tech telecommunication sector Sources: Compiled from the Ministry of Commerce and the Cambodia Investment Guide 2002.000 17. Infrastructure construction for use in the cultural and arts area 20. the Government drafted an amended the Investment Law which should be enacted soon and is expected to bring about significant changes in the investment climate of the country. each investment project approved by CDC and granted a Final Registration Certificate is called a qualified investment project (QIP). It is worth noting that the Government has issued the following list of sectors where investment will not receive incentives. In order to promote investment in disadvantaged areas. Retail and wholesale. vocational training centres 19. Press related activities and media networks (radio. Hotel construction Three stars or higher 18. Duty-free shops. and Natural resources. Kampong Speu. Koh Kong. Cambodia is divided into four regions. Restaurants. Prey Veng.

amendments to the Law on Taxation. For existing QIP granted this tax rate will be entitled to a grace period of five years after the promulgation of the new law. trucks. IV. gold. and petrol and lubricating oil) to 5-110 per cent (for automobiles. As Cambodia progressively improves its legal environment. • Exemption from import duties for construction materials. • Employment of foreign employees where no qualified Cambodians are available. • Transfer of incentives by merger or acquisition. provided the annual submission of the Compliance Certificate. cigarette and other tobacco products. plus another period of profit tax exemption as determined in the Financial Management Law.f. 1997. motorcycles and spare parts).Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ The following investment incentives are applied to QIPs on the condition that they obtain a “Compliance Certificate” from CDC on an annual basis: • A QIP is entitled to exemption from profit tax for a period of three years starting from the first year of profits or three years after the first revenue. Corporate (profit) tax Tax rates on the annual profit in Cambodia are as follows: • Twenty per cent for the profit realized by a legal person. and precious stones. production equipment and production input materials for Export QIPs and Supporting Industry QIPs. • Exemption from export duties. beer. B. buses. • Thirty per cent for profit realized under an oil or natural gas production sharing contract and the exploitation of natural resources including timber. ore. are expected. and • Zero per cent for an investment enterprise during the period of tax exemption. Excise tax Excise tax is applied to both domestically produced goods and imported goods based on ex-factory price and tariff inclusive c. • Nine per cent for an investment enterprise after the period of tax exemption. _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 38 of 48 . All QIPs are subject to the corporate profit tax rate of 20 per cent.i. An advance payment of profit tax at the rate of 1 per cent of the turnover of the previous month has to be made monthly. wine and spirits. Excise tax ranges from 10 per cent (for soft drinks. A. Similarly. value respectively. an existing QIP entitled to an exemption of tax or profit will be able to continue that exemption upon the annual submission of the Compliance Certificate. TAXATION The legal framework regulating taxation in Cambodia includes the Law on Taxation adopted in 1997 and the value added tax (VAT) introduced in 1999. The new Draft Amended Investment Law cancels the 9 per cent profit tax rate.

loan or instalment made by the employer to the employee. • Hospital.500.500.i. • Imported articles for personal use exempt from customs duties. _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 39 of 48 . which shall be added to the taxable salary of the month in which they are paid out and shall be deducted from salary in the month of any repayment made by the employee.001 to 12.000 Riels From 8. • Public-interest non-profit activities. • Goods imported by foreign diplomatic and consular missions. Income tax Income originated from the following sources is subject to a monthly salary tax: • Salary received from Cambodian sources.000 Riels From 500. Tax rate (%) 0 5 10 15 20 D.250. medical and dental services. and the sale of medical and dental goods.001 to 8.000 Riels Source: Law on Taxation . Additionally.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ C. Taxable parts of the monthly salary From 0 to 500. value.500. plant seeds. The following goods and services exempted from VAT: • Public postal services. Value added tax (VAT) VAT was introduced on 1 January 1999 to replace turnover and consumption taxes. • Salary received from foreign sources.500.001 to 1. international organizations and technical cooperation agencies of other Governments for official use. including customs duties and excise taxes when applicable. • Insurance and primary financial services.f. • Transportation of passengers by wholly State-owned public transport entities. VAT is not applied to exports. • Ten categories of agricultural inputs and/or “raw agricultural products” such as fertilizer. and • Advanced money. breeding stock. veterinary medicines. small tractors and spare parts. and miscellaneous agricultural machinery.250.000 Riels From 1. there is a list of imported agricultural inputs that are exempted from VAT (see table 17). animal feeds.000 Riels Over 12. clinic. VAT is levied at a single rate of 10 per cent on goods and services and imports from all sources on c.

0105.00. oil or natural gas.10. Ten per cent on the income from the rental of movable and immovable property.10.20.10.00. 1005.60. 0710. consulting and similar services. Imported agricultural inputs exempted from VAT HS classification 0101.00.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Table 17.50. the maximum business registration tax is 0. 0105.00.00. and . 1207. 50. 1997 stipulates that. 0105. 12. even if the taxpayer has been granted the status of an investment enterprise.25 per cent of the turnover.00.00.10. and capital flows in foreign or domestic currency.30.12.10. 0105.00.1 per cent of the turnover. A 4 per cent registration tax is also applied to the registration of ownership of immovable and movable assets.10. a 2 per cent tax is applied on unused land.00.04. 1207.10. F.01.06. • • V.05. 0106.10. the maximum rate is 0.11.10 and 2309.93. 0102. 1006.30. In the trade and industrial sectors. • Fifteen per cent on: . 0511.30.00.92. 0103. 0104.10.08. Five per cent on interest paid by a domestic bank or savings institution to a resident physical person having a non-fixed term savings account.09. 1207.10. 12.00. transfers.91.Royalties for intangibles and interests in minerals.00.Income received by a physical person from the performance of services including management. Other taxes Each business enterprise should register annually with the tax authorities and pay a business registration tax of US$300 per year. Withholding tax The following three rates of withholding tax are applied according the below listed specifications. Additionally.10. Minimum tax A minimum tax of 1 per cent of annual turnover is imposed on taxpayers subject to the real regime system of taxation.11.19.10. between Cambodia and the rest of the world or between residents and _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 40 of 48 . 0105.11.10. 23. 12.00.00.10. 1207.19.20. all kinds of international settlements. 0104. “there shall be no restrictions on foreign exchange operations through book entry including purchases and sales of foreign exchange on the foreign exchange market.10. 23.40.10. 1008. In the service sector. G. 1207.00. Product description Animal species Seeds Animal feedstuff and supplementary feed E. 0105. 1207. 12.90 Source: WTO (WT/ACC/KHM/21).09 except 2309. table 3. and interest paid to a physical person or an enterprise except interest paid to a domestic bank or savings institution. FOREIGN EXCHANGE The Law on Foreign Exchange.

Any transfer equaling or exceeding US$ 100. The Law guarantees the right to strike stipulating that each strike must be preceded by prior notice of at least seven days. The maximum working hours are eight hours per day or 48 hours per week. Cambodia has a fairly young population. Vocational Training and Youth Rehabilitation prior to the actual opening of the enterprise or within 30 days after the closing of the enterprise. A. Cambodian employees are required to have employment cards. nor perform night work in any enterprise. and • Repatriation of invested capital on dissolution of an investment project. But minors (under 18 years old) cannot be employed in underground mines or quarries. 1997 . Enterprises that have at least eight workers must have an internal regulation of the enterprise. the lack of educational opportunities has resulted in shortages of skilled labour which has become a major issue for both investors and Government. Labour. LABOUR ISSUES As mentioned earlier. The Law on Investment guarantees that investors can freely remit foreign currencies abroad for the purposes of: • Payment for imported goods and services. It can be renewed one or more times. nor on most transfers of funds abroad. VI. Cambodia’s Labour Law recognizes that labour contracts can be made in written or verbal forms.” There are currently no restrictions on the repatriation of profit or capital derived from investments made in Cambodia. A labour contract cannot be for a period longer than two years. This notice must be filed with the enterprise or establishment as well as with the ministry in charge of labour. and repayment of loans including interests and principals made by foreign banks or institutions.000 shall be reported to the Central Bank. establishes that all employers must make a declaration to the Ministry of Social Affairs. The minimum age for wage employment is set at 15 years. • Profits after discharge of obligations due and payment of all relevant taxes and royalties. Women are entitled to maternity leave of 90 days with half of their regular wages paid by their employers. as long as the renewal does not surpass a maximum duration of two years. The Law requires a minimum wage but it does not set the actual figure of minimum wage. However.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ non-residents. • Royalties and management fees. Cambodia’s Labour Law regulates the right to establish labour unions as well as “collective labour agreements”. Moreover. For one year from the date of the child delivery. women are entitled _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 41 of 48 . Basic labour requirements Cambodia’s Labour Law. such operations shall be undertaken solely through authorized intermediaries.

conduct activities to attract clients. Should the parties fail to reach an amicable settlement within two months of the date of first consultation. Cambodia obliges to the ASEAN Protocol on Dispute Settlement Mechanism. As a member of ASEAN. 1996 which provides procedures on dispute settlement to all Member States. The maximum percentage of foreign employees in each enterprise cannot exceed 10 per cent. B. _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 42 of 48 . disputes relating to encouraged investments in Cambodia or involving foreign national’s rights and obligations protected by law should be settled amicably through consultation between the parties in dispute. either party can bring the dispute to the following high level bodies: • Conciliation before CDC which will provide its opinion. The Government is currently applying to become a member of the International Centre for Settlement of Investment Disputes (ICSID). the dispute must be referred to the ASEAN Senior Economic Officials Meeting which will set up a panel to hear the dispute. Cambodia has agreed to establish before 1 January 2005 a dispute settlement mechanism within the Cambodian Customs Service in order to handle complaints about customs practices from traders and Governments. but they cannot represent clients. or • Referral to international rules to settle the dispute. Only residents in Cambodia can be employed. women workers can place their children in any day-care centre and the charges must be paid by the employer. Employment of foreigners exceeding the stipulated limit requires authorization from the ministry in charge of labour. VII.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ to an extra one-hour break per day for breastfeeding during the regular working hour. or • Referral of the dispute to the court of Cambodia. or publish commercial advertisements. Alternatively. Foreign employment No foreigner can work in Cambodia unless he/she possesses a work permit and an employment card issued by the ministry in charge of labour. as agreed by both parties. Cambodia’s Labour Law also requires that any enterprises employing a minimum of 100 women or girls set up. within their establishments or nearby. if there is not day-care centre on the premises. DISPUTE SETTLEMENT Whenever possible. a nursing room and a day-care centre. Upon its accession to WTO in September 2003. In case the disputing parties fail to reach agreement. Foreign lawyers are permitted to engage in commercial association with Cambodian lawyers.

and the Law on Plant Variety Protection. a Capital Market Law was drafted but due to the political disturbance in 1997. Trademarks The Law on Marks. and the Law on Patents. Utility Models and Industrial Designs (January 2003). Copyright protection The Draft Law on Copyright and Related Rights. Trade Name and Acts of Unfair Competition (February 2002). In 1995. Cambodia has participated in the ASEAN Framework Agreement on Intellectual Property Cooperation since 30 April 1999. _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 43 of 48 . Additional legislation is expected to be adopted in 2004. Upon Cambodia’s accession to WTO. is responsible for formulating and implementing policies regarding protection of copyrights. Beside the multilateral agreements. the Law on Marks. CAPITAL MARKET There is no capital market in Cambodia. rental rights for computer programmes. such as the Law on Geographical Indications and Layout Design of Integrated Circuits. Trade Name and Acts of Unfair Competition.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ VIII. the National Bank of Cambodia has the responsibility to establish and oversee financial markets as well as securities operations. under the Ministry of Commerce. 2002 . A. B. the Law on Protection of Undisclosed Information and Trade Secrets. As a member of ASEAN. The Cambodian Government is planning to join the Berne Convention (for copyrights and related rights). and belongs to the Paris Convention for the Protection of Industrial Property Rights since 1998. A trademark is protected for 10 years and renewable for successive periods of 10 years indefinitely. the initiative was interrupted. Under the Central Banking Law. 2002 requires that applications for registration of a mark be submitted to the Intellectual Property Division at the Ministry of Commerce. including the Draft Law on Copyright and Related Rights (March 2003). computer programmes as literary works. and the exclusive rights of a broadcaster to authorize rebroadcast by wireless means. provides protection for the lifetime of the author and 50 years after his/her death. IX. new legislation has been drafted to conform to the Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement. 1996. and the International Convention for the Protection of New Varieties of Plants (UPOV). The Department of Intellectual Property. The Draft Law also provides protection for compilations of data. Cambodia has also entered into bilateral agreements regarding property rights with Thailand and the United States of America. PROTECTION OF PROPERTY RIGHTS Cambodia is a member of the World Intellectual Property Organization (WIPO) since 1995.

Utility Models and Industrial Designs.//www. August 2003 Greater Mekong Sub-region Business Forum http.msf. In January 2003.asp Economist Intelligence Unit.moc.cfm?articleid=2ECD1BDD-94B2-49EB8EC939E2C87E54C7 Ministry of Commerce www.wto.kh US Commercial Service. Designs that are contrary to public order or morality cannot be registered..cambodia. Only new designs (designs not disclosed to the public through publication or use prior to the priority date) can be registered.gov.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ C.org/Documents/Reports/CAM_Blueprint/ Cambodia E-Government Homepage http.gmsbizforum. registration applications for industrial designs should be submitted to the Ministry of Industry. References for part four: Investing in Cambodia Asian Development Bank. Protection is provided for five years and can be renewed twice.html Cambodia Investment Guide 2002. 15 August 2003 WT/ACC/KHM/21 http://docsonline.org/gen_home.cambodiainvestment. Industrial designs and patents Under the Draft Law on Patent. Mines. Cambodia Financial Sector Blueprint for 2001-2010 (2001) http.gov.frame. Country Commercial Guide for Cambodia FY 2001 http//www. DFDL/Mekong Law Group (2002) Council for Development of Cambodia/Cambodia Investment Board http.gov.nsf/ShowCCG?OpenForm&Country=CAMBODIA WTO Report of the Working Party on the Accession of Cambodia. MIME is also in charge of registration for patents.asp?language=1&_=1 _______________________________________________________________________________________________________ Part Four: Investing in Cambodia 44 of 48 . 2003.cambodia.com/Legal per cent20and per cent20regulatory(cambodia)/Foreign per cent20investment/Taxation per cent20.gov/website/ccg.kh/default. Country Profile.adb. and Energy (MIME).//www.//www.org/content/page.//www.kh/unisql1/egov/english/home. Cambodian Government adopted a new Law on the Management of Pharmaceutical Products to postpone the implementation of pharmaceutical patenting until 2016 citing the Doha Declaration which allows LDC Governments to delay the implementation of pharmaceutical patent protection until 2016.usatrade.htm Médecins Sans Frontières http.//www. Patents are granted upon expiration of an 18-months period starting on the priority date and protection is provided for 20 years.

the current fees for visa and related expenses are: • • • Visa fee: Airport tax: Domestic airport tax: business visa (US$ 25). Within Cambodia. including Bangkok. The Open Sky Policy permits international flights to Cambodia’s main airports which has helped increase the number of visitors to the country. including Malaysia Airlines. Phnom Penh. tourism has restarted in Cambodia. Siem Reap and Stung Treng. Consequently. tourist visa (US$ 20). Shanghai. A. at Siem Reap (US$ 15). international airport tax (US$ 20). If visitors arrive at Cambodia through any other entry point they need to obtain a visa from one of the Cambodian embassies.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Part Five TIPS FOR VISITORS TO CAMBODIA Since the Paris Peace Agreement (1991). Province of China). Visas can be obtained at the Cambodian embassies and consulates or upon arrival at the international airports of Phnom Penh and Siem Reap. The sector is mostly in the hands of private companies while the Government focuses on the infrastructure development. Siem Reap Airways and Royal Phnom Penh Airways) serve seven cities/towns throughout the country. and Singapore. The cities/towns with international flights connections are Battambang. Visa and passport Visitors are required to possess valid passport and visa to enter Cambodia. and at border check points with Thailand and Viet Nam. _______________________________________________________________________________________________________ Part Five: Tips for visitors to Cambodia 45 of 48 . Vietnam Airline. China) and Eva Air (Taiwan. According to the Ministry of Tourism. but the visa process is free of charge. Mondolkiri. For individuals who need to stay longer than the standard one month. a three-month visa will be granted upon application to the Ministry of Interior and payment of a fee of US$ 60. There are 11 cities in Asia that have direct international flights to and from Cambodia. three airlines (Mekong Airlines. Kuala Lumpur. Koh Kong. Rattanakiri. Visitors to Cambodia may book their travel through one of the registered tour operators in Cambodia or travel on their own. Individuals with a business licence issued by the Ministry of Commerce may apply for a business visa valid for one year upon payment of a fee of US$ 20. and US$ 5 A tourist visa is valid for 30 days. Dragon Airline (Hong Kong. Thai Airways International. Bangkok Airway. Silk Airline (Singapore). 12 international airlines are allowed to provide direct flights to and from Cambodia. Children under 14 years old also need visa to travel to Cambodia. The Government has adopted a policy to promote all activities related to the development of tourism.

Phnom Den (Takeo Province).//www. . .//www.com http.Bavet (Svay Rieng Province).S. .Poi Pet (Banteay Meanchhey Province).//www.) http. .com/travel/travel_guide.A. and .com http.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ B.embassy. No visa on arrival.com/information/cambodia-visa.org/cambodia/ GoCambodia. References for part five: Tips for Visitors to Cambodia Cambodia-travel.nsf/ShowCCG?OpenForm&Country=CAMBODIA _______________________________________________________________________________________________________ Part Five: Tips for visitors to Cambodia 46 of 48 .gov.usatrade.gocambodia. Washington DC (U. Country Commercial Guide for Cambodia FY 2001 http//www. Viet Nam or Lao People’s Democratic Republic may use one of the following border crossing points.Cham Yeam (Koh Kong Province). Entry points • • • By air: Siem Reap and Phom Penh.com/cambodia/explorer_cambodia.kh/ US Commercial Service. .cambodia-travel.gov/website/ccg.mot.gmsbizforum.htm Embassy of Cambodia.asp Greater Mekong Sub-region Business Forum http. .O'Smach (Oddar Meanchhey Province).//www.Kaam Samnor-Koh Rokar (Kandal-Prey Veng). No visa on arrival.//www.Dong Krolor (Stung Treng Province).htm Ministry of Tourism http. By sea: Sihanoukville Port (Visa on arrival upon request) By road: Visitors coming from Thailand.

moc.com.kh/Council_of_Jurists/Constit/con s001g. 1993 Council for the Development of Cambodia Decision No.pdf Draft Customs Law _______________________________________________________________________________________________________ Part Five: Tips for visitors to Cambodia 47 of 48 .org/2002_cept_bycountry.cambodiainvestment.com/ http://www.bigpond. 65 on the Annulment the Existing Procedure for Timber Export.gov.ht m http://www. Constitution.kh/Application.kh/pro_tv9.asp http://www.org/home.gov.daily/ http://www.kh/Council_of_Jurists/z/Typolg.doc.kh/laws_regulation/draft_lawscomment/Draft_LawsUpdate/Draft Amended Law on Investment.htm http://www.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Annex INTEGRATED INTERNET LINKS LISTED IN THIS DOCUMENT Name ADB annual report 2002 .kh/Council_of_Jurists/Banque/KR M19_11_13E. 88 on the Implementation of the Law on Investment Application form from the CDC Apsara Radio and TV Channel 11 ASEAN Asian Highway status map of Cambodia Banking and Financial Institution Law Banking and Financial Institutions Law in 1999 Bayon Radio and Television Cambodia .Cambodia AFTA Agreement on Promotion and Protection of Investment between Cambodia and Thailand Amending and Supplementing the Issuance of Certificates of Origin. 11/ANK/BK on BOT Contract Anukret No.moc.kh http://www. 63/ANK/BK on Conferring the Right to Sell and Export Rubber Products to the Ministry of Agriculture.cambodiainvestment.bigpond.ccb-cambodia.camcontrol.adb.gov.moc.kh/laws_regulation/prk3416-99moc_co. Commercial Invoices.moc. and Export Licenses for Exported Garments.com.htm http://www.kh/laws_regulation/draft_lawscomment/Draft_LawsUpdate/Draft Law on Customs15August02.canadiabank.kh/laws_regulation/part8_sustainable/a nk63_93_rubber.gov.htm http://www.bayontv.gov.moc. 3413/MOC Anukret No.bigpond.gov.kh/Council_of_Jurists/Treaties/tri 002f.gov/Otexa/OTEXAGRE.gov. Prakas No.com. October 13 1994 Anukret No. 18 June.apsaratv.kh/ http://www.htm http://www.aseansec.htm http://www.kh/laws_regulation/econo_devepment/ ANK88-CDC.asp http://web.gov.gov. Forestry and Fisheries.htm http://www.htm http://www.bigpond.United States of America Investment Treaty Cambodia Commercial Bank Cambodia Council of Jurists Cambodia Daily Cambodia Investment Board (CIB)/Council for the Development of Cambodia (CDC) Cambodia-US Agreement CAMCONTROL Canada Bank Ltd.cambodiainvestment.htm http://www.htm http://www.org/Documents/Reports/Annual_Report/200 2/CAM.com. 1994 Draft Amended Investment Law Internet address http://www.moc.kh/laws_regulation/rkm1199-13bank_financial.com.htm http://www.com.gov.com.org/tctd/ah/cambodia.kh/laws_regulation/econo_devepment/ ank80-99-lol_neg-list.htm http://www.moc.kh/cambodia.asp http://www. 80/ANK/BK on Measures Restricting Certain Investment Sector 1999 Anukret No.htm http://www.bigpond.htm http://www.kh/Council_of_Jurists/Treaties/tri 007g.moc.gov.gov.gov.htm http://www.camnet.unescap.kh/laws_regulation/part8_sustainable/s sr65_94_annul.kh/default.ita.htm#statusmap http://www.com.asp http://www.kh/default.moc.aseansec.kh/laws_regulation/econo_devepment/ ank-bot.NSF/main-view http://www.pdf http://www.net/ http://www.

pdf http://web.htm http://www. Trade Name and Acts of Unfair Competition.com.htm http://www.int/doclib/docs/2003/april/tradoc_111331.htm http://www.htm http://www.html http://www.moc.kh/laws_regulation/prk1437-99moc_ci.aseansec.gov.eu.org/4924.kh/documents/TCAM 3.pdf http://www.tv3.html http://www.gov.gov.htm http://www.kh/Trade_Agreement/canada_21jan03.pdf http://www.doc http://www. Prakas No.cec.kh/laws_regulation/rkm0600-01product_safety.gov. Utility Models. Utility Models and Industrial Designs.gov.com/ http://www.ustr.gov.kh/laws_regulation/New_Update/Law on Copyright-31May 2002.gov/Otexa/OTEXAGRE. IDs Law.gov.htm http://www.moc.eu.1. 1997 Law on Import and Export Duties.moc.com/ http://www.htm http://tradeinfo.kh/laws_regulation/rkm_labor_law_97 .NSF/ http://europa.cambodiainvestment. United States of America Phnom Penh Post Prakas on Measures Against Food Products Devoid of Appropriate Packaging Label Pre-shipment inspection regulations Annex Protocol on Dispute Settlement Mechanism.kh/laws_regulation/rkm897-03foreign.camnet.kh/customs/LAW89.tv9.doc.kh/laws_regulation/draft_lawscomment/Draft_LawsUpdate/Draft Patent.gov.kh/english/default.ita. 1996 Radio and Television 3 Rubber import.sbc-bank.org/ http://www.Traders’ Manual for Least Developed Countries: CAMBODIA _______________________________________________________________________________________________________ Draft Law on Copyright and Related Rights.gov.com. Television Station Channel 9 The issuance of the Certificate of Origin. 2002 Law on Taxation Law on the Management of Quality and Safety of Products and Services Mekong River Commission Memorandum of Understanding between Cambodia and Canada Ministry of Commerce National Television of Cambodia New extension of United States of America -Cambodian Textile Agreement Office of Textiles and Apparel.kh/aboutus.go. 2003 ELVIS (Electronic Visa Information System) Visa Arrangement EU-Cambodia Textile Trade Agreement Foreign Trade Bank Japan Ministry of Foreign Affairs Labour Law.wto.kh/laws_regulation/New_Update/PSI Regulations Annex. 1994 Law on Marks.kh/food_laws.ita.kh/laws_regulation/rkm97_taxation_la w.mrcmekong.htm http://www. 1989 Law on Investment.kh/ http://www.gov.org/ http://www.com.kh/profile. export.com.mofa.moc.moc.org/regions/asia/Camb odia/02lw-TrademarCompet1. htm http://www.htm http://www.tvk.doc.gov.html http://www.com/index. Pdf http://www. 1995 Law on Foreign Exchange.1laws Investment Law.moc.jp/policy/economy/gsp/ http://www.gov.maff.gov/releases/2000/05/00-39. 2002 Draft Law on Patent.unescap.moc.html http://www.ustr.gov/releases/2002/01/02-03. Commercial Invoice and Export Licence for Garments.ftbbank.camcontrol.kh/Council_of_Jurists/Commerce/ com002g. transport and equipment company Singapore Banking Corp.pdf http://www.phnompenhpost.html http://www.moc. 1997 Law on Commercial Regulations and Commercial Register.moc.int/comm/external_relations/cambodia/intro /index.gov/ http://www.moc. 1347/MOC/PRK Trade section of the European Commission UNESCAP United States of America Apparel quota increase WTO http://www.bigpond.kh/ http://www.org/ _______________________________________________________________________________________________________ Part Five: Tips for visitors to Cambodia 48 of 48 .gov.htm http://otexa.globalcompetitionforum.htm http://www.gov.