Cambodian PM Announces Key Reforms to Facilitate Trade

Phnom Penh, 14 November 2023 – On 13 November2023, the 19^th Government-Private Sector Forum (G-PSF) was successfully concluded under the chairmanship of the Prime Minister of Cambodia, Samdech Moha Borvor Thipadei Hun Manet.

On this occasion, the Prime Minister announced the significant progress made by the General Department of Customs and Excise(GDCE) in trade facilitation and digitalizing trade procedures, and presented the Government decisions on further trade-related reform measures aiming to promoting Cambodia's diversification and competitiveness on both regional and global scales. The reforms included:

1. Exempt custom processing fee for import and export goods and reduce custom declaration fee.

2. Exempt scan tariff for those containers that do not go through scanner.

3. GDCE continues working with the private sector to reduce logistic service fees and reduce or simplify customs procedures, including the promotion of using ICT/electronic.

4. Implement the rule and procedure for cargo declaration and pre-arrival processing through an electronic system in accordance with the Prakas No. 788 SHVBK dated 27 October 2023 on Custom Procedure on Pre-Arrival Processing, starting from 01 January 2024 onward.

5. Separate types of goods to accelerate the custom documentation through the implementation of rules and procedures for custom documentation for post, express and cross-border e-commerce delivery, starting from 01 January 2024 onward.

6. From 01 January 2024 onward, the following mechanisms will be implemented:

a) Fully automated customs valuation and origin verification procedures within the customs valuation declaration system (CVDS),

b) System connection to enable automated data exchange on customs valuation declaration, customs valuation verification and preferential tariff from CVDS to ASYCUDA, and

c) Publishing the certificate of custom valuation verification and issuing hard copy of the certificate of origin verification upon request.

7. Prepare and implement action plans to:

a) Reduce the expenses/cost of custom clearance process and revise the appropriate service fees,

b) Prepare relevant legal documents to allow the use of attachment files in electronic form for an official use,

c) Revise custom procedure declaration in ASYCUDA and E-Custom to encourage the exchange of documents in an electronic format and reduce paper-based documents, and

d) Strengthen the Single Window mechanism to reduce procedures and face-to-face meetings with customs officials.

8. Promote and complete the Cambodia National Single Window (CNSW) Phase 3 to include licenses, permits, certificates, and other documents (LPCOs) of relevant Ministries to promote the utilization of ICT as a priority for requesting import and export documents.

9. Maximize the facilitation of control on goods for export through risk-based controls, including using scanners, reducing the rate of control to less than 10% as well as exempting the scan tariff for containers that do not go through scanner.

10. GDCE continues to promote capacity building and issue licenses for custom brokers.

11. Allow customs officials to work extra hours at night at dry ports by determining the appropriate compensation in order to facilitate exports.

12. Continue to promote the implementation of the Authorized Economic Operator (AEO) program and enhance the Best Trader Incentive Mechanism.

13. Promote fair competition and protect citizen's health through the implementation of the following mechanisms:

a) Relevant ministries must strengthen carefully the implementation of import prohibition of spoilt or low-quality products that can be harmful to human health, not limited to illegal imports of frozen pork, chicken, eggs and fish, into Cambodia,

b) Limit the imported entrance gate for frozen pork, chicken, eggs and fish to ease the management and control of illegal imports in all manners,

c) Amend the sub-decree no. 17 ANKr.BK on Enforcement of the List of Prohibited and Restricted Goods to require the authorization letter from the Ministry of Agriculture, Forestry and Fisheries (MAFF) for the importation of frozen pork, chicken, eggs and fish to ensure the quality and well-being of citizens in accordance with the prevailing regulations, and

d) MAFF must use the CNSW to facilitate the request for the authorization letter for those products.

14. Amend sub-decree no. 12 ANKr. dated 19February 2020 on the adjustment of the export tariff rate on rubber goods in collaboration with the private sector to determine the average price and basic formula for calculating duties on exported rubber from Cambodia to enhance accuracy.

These reforms are expected to further improve the trade facilitation environment in Cambodia, reducing time and costs associated with customs clearance, enhanced efficiency and transparency in customs operations, and improve trade competitiveness for Cambodia on the global stage.

On behalf of the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development (BMZ), ARISE Plus Cambodia project is supporting the GDCE and other partners in implementing trade facilitation reforms such as the implementation of Pre-Arrival Processing, the AEO program, the CNSW and others for the benefit of all traders.

(Photo credit: Cambodia Chamber of Commerce)

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For more information, please contact:

Ms. Maren Bremer, Lead Trade Facilitation Advisor

Email: maren.bremer@giz.de