RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KHM/6
11 December 2001
(01-6271)
Working Party on the
Accession of CambodiaOriginal:  English
ACCESSION OF CAMBODIA
Additional Questions and Replies
The Government of the Kingdom of Cambodia has submitted the following replies to
additional questions submitted by Members.
_______________
CONTENTS
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
1. Economy ...................................................................................................................... ..............1
(b) Current economic situation.................................................................................................. ....1
2. Economic Policies............................................................................................................ ..........2
(a) Main directions ............................................................................................................. ............2
(c) Foreign exchange and payments system .................................................................................2
(d) Foreign and domestic investment policies ..............................................................................3
(e) Competition  policies ........................................................................................................ .........5
(f) Privatization ............................................................................................................... ...............5
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................6
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................9
1. Import Regulation............................................................................................................ .........9
(a) Registration requirements fo r engaging in importing...........................................................9
(b) Characteristics of  national tariff .......................................................................................... .11
(c) Tariff quotas, ta riff exemptions............................................................................................ .12
(d) Other duties and charges, specifying any charges for services rendered ..........................14
(e) Quantitative import restrictions, including prohibitions, quotas and licensing
systems ........................................................................................................................ .............14
(f) Import licensing procedures ................................................................................................. .14
(h) Customs valuation........................................................................................................... ........16
(j) Pre-shipment  inspect ion ..................................................................................................... ....20WT/ACC/KHM/6
Page ii
(k) Application of internal taxes on imports ..............................................................................21
(l) Rules of  origin ............................................................................................................. ............23
(m) Anti-dumping, countervailing duty and safeguard regimes ...............................................23
2. Export Regulation............................................................................................................ .......23
3. Internal Policies affectin g foreign trade in goods ................................................................24
(b) Technical regulations and standards, including measures taken at the border
with respect to imports ........................................................................................................ ...24
(c) Sanitary and phytosanitary measures, including measures taken with respect to
imports ........................................................................................................................ .............25
(d) Trade-related inve stment measures ......................................................................................26
(e) State-tradi ng practices ..................................................................................................... ......27
(l) Government procurement practices .....................................................................................27
4. Policies Affecting Foreign Trad e in Agricultural Products ................................................28
V. TRADE-RELATED INTELLECTUAL  PROPERTY RÉGIME.......................................32
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................35
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................36
ANNEXE S ........................................................................................................................ ....................38WT/ACC/KHM/6
Page 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(b) Current economic situation
Question 1
In the response to question 2, Cambodia stated that  "customs duties accounted for 55 per cent and
51 per cent of total tax revenue in 1998 and 1999.  For those same two years, customs revenueaccounted for 41 per cent and 36 per cent, respectively, of total budget revenue."  Does the 51
percent of "total tax revenue" in 1999 attributed to "customs duties" include VAT, excise taxes,
turnover taxes, etc.?
Answer:
Please see the answer to Question 2.
Question 2
Of the portion of revenue collected at the customs border, what part of the total is due to tariffs,
and what part to the application of turnover, sales, VAT, and excise taxes, which are also applied to
domestic goods?
Answer:
The structure of budget revenue has evolved in recent years as tax reform has progressed. The latest
information on the role of imports in generating budget revenue is for the year 2000, and is contained inthe table immediately below.
Year 2000
( in million Riels)
TOTAL
Government
RevenueOf which total tax
revenueOf which total
revenue collected at
the border on
importsOf which Customs
dutiesOf which Excise
taxesOf which
VAT
12 3 4 5 6
Amount%
(2:1)Amount%
(3:2)Amount%
(4:3)Amount%
(5:3)Amount%
(6:3)
1,448,523 1,059,708 73.15 779,301 73.53 372,822 47.84 93,684 12.02 312,795 40.14
In Cambodia, the turnover tax and the sale tax are not collected at the customs border.WT/ACC/KHM/6
Page 2
2. Economic Policies
(a) Main directions
Question 3
We seek a commitment from Cambodia, similar to  that included in other accession protocols that
its price controls will observe the provisions of Article III: 9.
Answer:
The internal price controls are currently applied only to electricity and water utilities, which are not
imported items. Cambodia, like any WTO Member, will be subject to the provisions of Article III: 9 of
GATT 1994.
(c) Foreign exchange and payments system
Question 4
Regarding the response to Question 5, it is th us correct to state that all foreign exchange
transactions are permitted, spell out provid ed that these take place through authorized
intermediaries.  The same article defined author ized intermediaries as "only banks that are
permanently established in the Kingdom of Cambodia."  On the basis of the reply furnished by
Cambodia can we conclude that, under the 1997 Law on Foreign Exchange, foreign bank branches
in Cambodia could not become "authorized interm ediaries" for foreign exchange transactions or
are branches considered as permanent establishments?
Answer:
According to the banking law, banking and financ ial institutions may be locally incorporated in
Cambodia or be a branch of a foreign bank. Foreign bank branches are thus also covered under Article 5
of the 1997 Law on Foreign Exchange and are considered as permanent establishments.
Question 5
Regarding the response to Question 6, has Camb odia's membership of the IMF under Article 8
being completed?
Answer:
Since the practices and the provisions of the existing banking laws and regulations are in line with the
contents of Article 8 of the IMF Articles of Agreement, there is no obstacle for Cambodia's membershipunder that Article. The IMF Resident Representative in Cambodia has confirmed the formality for
membership is expected to be completed by the end of 2001.
Question 6
Does Cambodia require that foreign exchange pro ceeds from importing and exporting be converted
into local currency?WT/ACC/KHM/6
Page 3
Answer:
There is no requirement for having foreign exchange proceeds from importing and exporting activities be
converted into local currency.
(d) Foreign and domestic investment policies
Question 7
The response to Question 10 indicates that Camb odia conditions subsidies on export performance.
To the extent that the benefits provided are, in law or in fact, contingent upon export performance
or import substitution, they are prohibited s ubsides as provided for in the WTO Agreement on
Subsidies and Countervailing Measures.  Please detail  all such subsidies, as provided for in the Law
on Investment of 4 August 1994, Sub-Decree No. 88 ANKR.BK on the Implementation of the Law
on Investment dated 29 December 1997, and the Sub-Decree on the Amendment of the Sub-Decree
on the Implementation of the Law on Investment of the Kingdom of Cambodia, dated 11 June 1999,
or other legislation.
Answer:
The eligible projects approved by Council for the Development of Cambodia (CDC), receive the
incentives spelled out in Art. 14 on the Law on Investment:
1. A corporate tax rate of 9% except on the exploration and exploitation of natural
resources, timber, oil, mines, gold, and precious stones which shall be set in other laws.
2. A corporate tax exemption of up to 8 years depending on the characteristics of the
projects. (See appendix Matrix of Sub-Decr ee No. 88). Corporate tax exemption shall
take effect beginning from the year the project derives its first profit. A 5-year loss
carried forward shall be allowed. In the event profits are reinvested in the country, such
profits shall be exempted from all corporate tax.
3. Non-taxation on the distribution of dividends or profits or proceeds of investments,
whether transferred abroad or distributed in the country.
None of the above incentives is linked to export performance.
4. 100% import duties exemption materials, means of production, equipments, intermediate
goods, raw materials and spare parts used by:
5. An export-oriented project with a mini mum of 80% of the production exported;
6. Projects located in a designated Special Promotion Zone (SPZ) listed in a development
priority list issued by the council;
7. Tourism industry
8. Labour-intensive industries, processing industries, agro-industry;WT/ACC/KHM/6
Page 4
9. Physical infrastructure and energy industry.
It should be noted that the Investment Law does not provide for any reduction, remission or exemption of
direct taxes linked to export performance. There are thus no export subsidies as defined by paragraphs (e)
and (f) of Annex I of the Subsidies Agreement. As regards indirect taxes, the exemption of import duties
for exporting firms envisaged in the Investment Law is entirely analogous to the exemption referred to in
Article 1 (note 1) of the Subsidies Agreement and paragraph (h) of the Annex I to that Agreement. It istrue that the exemption from import duties referred to  in paragraph (h) of Annex I would in principle be
better granted through a duty draw-back scheme. In Cambodia’s present circumstances such a scheme
would not produce results substantially different from those produced under the present arrangements.
These arrangements are thus not trade distorting.
As a Least Developed Country Cambodia does not have the necessary administrative resources to operate
properly a duty draw-back scheme. Further, we understand that under Art. 27.2 of the Agreement on
Subsidies and Countervailing Measures, LDCs and other developing countries referred to in Annex VII,are exempted from the application of paragraph 1(a) of Art. 3 (prohibition of subsidies contingent upon
export performance).
Question 8
In document WT/ACC/KHM/3 Cambodia states that it is considering revising incentives offered to
investors, e.g., allowing existing investors to reta in the original incentive for a number of years after
any revision takes place.  Please indicate how, and when, Cambodia intends to eliminate prohibited
export subsidies from its trade regime.  Any request  for a transition on these issues must involve a
detailed commitment to the elimination of the WTO-inconsistent practices.
Answer:
Please refer to the Answer to Question 7 above. As we understand, Art. 27.2 states that LDCs are
exempted from the "prohibited subsidy" provision in Art. 3:1(a).
Question 9
Regarding the response to Question 8, investment in certain sectors affecting national security,
social safety, or economic necessity shall be restricted (Article 3, paragraph 3.2 of the Sub-Decree
No. 88 on the Implementation of the Law on Invest ment).  Can it be confirmed that an economic
needs test only applies to investment in certa in sectors and could Cambodia list the sectors
concerned?
Answer:
There are no economic needs tests. Certain sectors are closed to both nationals and foreign investors, or
are subject to restrictions on their activity. These sectors are identified in Annex I.WT/ACC/KHM/6
Page 5
(e) Competition policies
Question 10
Regarding the response to Question 15, is unfair competition prevented only with regards to
advertising activities?
Answer:
Cambodia is in the process of developing its co mpetition legislation which will cover not only
advertisement activities but also other areas of businesses.
For example, acts of unfair competition are mentioned in the draft Law on Marks, Trade Names and Acts
of Unfair Competition, Chapter 7, Articles 22 and 23:
a) all  acts  of such a nature as to create confusion by any means whatever with the
establishment, the goods, or the industrial, commercial or service activities of a
competitor;
b) false  allegations  in  the course of trade of such a nature as to discredit the establishment,
the goods, or the industrial,  commercial or service activities of a competitor.
c) indications  or  allegations  the  use  of  which  in  the course of trade is liable to mislead
the public as to the nature, the manufacturing process, the characteristics, the suitability
for their purpose, or the quantity of the goods.
(f) Privatization
Question 11
Cambodia’s goal of long-term privatization of  state-owned enterprises as encouraging.  In
document WT/ACC/KHM/3 Annex II, Cambodia provides a broad summary of the sectors in
which state-owned enterprises operate.  Please  provide the names of these enterprises and
information on the goods and services State-owned enterprises produce and the role State-ownedenterprise play in their distribution.  For exampl e, Cambodia states in Annex II it operates four
Public Works and Transport enterprises.   Please provide more detail.
Answer:
Please see Annex II.
Question 12
Please list the enterprises that Cambodia intends should remain State-owned when privatization is
completed.
Answer:
Enterprises to be retained as state-owned enterprises when privatization is completed.WT/ACC/KHM/6
Page 6
No. Ministry State-owned enterprises to be retained
1. Ministry of Commerce Green Trade Company
2. Ministry of Industry,
Mines and EnergyElectricity of Cambodia (EDC)
3. Office of the Council of
MinistersPrinting House of the Office of the Council of Ministers
4. Ministry of Economy and
FinanceRural Development Bank
5. Ministry of Public Works
and TransportSihanouk Ville Port, Phnom Penh Port, Kampuchea Shipping Agency and
Broker (KAMSAB), Laboratory of Construction, Royal Railway Station,
Neak Loeung Ferry, Tonle Bet Ferry and Prek Kdam Ferry.
6. Ministry of Agriculture,
Forestry, and FisheriesAgricultural Inputs Company.
Discussions are ongoing on whether the 7 Rubber State-owned enterprises
are be retained as state-owned enterprises after the privatization iscompleted.
Question 13
Cambodia includes in document WT/ACC/KHM/2 a table that details its privatization effort by
ministry/other government entity.  Please confirm that this table includes data on all enterprises
that were/are State-owned firms, regardless of whether or not they will be privatized.
Answer:
Yes, the table is comprehensive.
Question 14
In response to Question 21 (page 9 of document WT/ACC/KHM/3) Cambodia indicates that it is
working on estimates of the value of imports, exports, and GDP of state-owned enterprises.  Weappreciate Cambodia’s effort to produce this information.  When will data on State Owned
Enterprises likely to be available to the Working Party?
Answer:
The estimate turnovers of certain state owned enterprises are described in Table 5, Annex II.
III. FRAMEWORK FOR MAKING  AND ENFORCING POLICIES AFFECTING FOREIGN
TRADE IN GOODS AND TRADE IN SERVICES
Question 15We note that Cambodia has submitted existing legislation to the Secretariat and we will be
reviewing these in more detail.  We note new a nd revised laws are in preparation in a number of
areas directly relevant to implementation of the WTO.  Cambodia has mentioned the names of
these laws, but it would be helpful to understand more fully the coverage of these draft laws and the
timetable for their implementation.  It would also be helpful if Cambodia could submit the draftlaws when this is possible.  We would also be interested in Cambodia's plans to ensure more
effective implementation of legislation.WT/ACC/KHM/6
Page 7
Answer:
A Legislation Action Plan is being submitted to the Working Party. Cambodia has made available to
interested members of the Working Party selected draft legislation. (see answer to Question 20.)
Cambodia is currently undertaking legal and judicial reform one component of which will be to ensure the
effective implementation of legislation.
Question 16
Does Cambodia have a plan of action for legisl ative changes to address the deficiencies already
identified in its legislation as it relates to WTO provisions?  If not, we suggest that one be
developed. We look forward to working with Cambodia on this, if necessary.
Answer:
See answer to Question 15. In order to ensure the timely execution of the Legislation Action Plan,
technical assistance will be sought from WTO member countries.
Currently, certain laws are already in conformity with  the WTO rules, for instance, legislation governing
the banking sector was established in collaboration with the IMF and experts from central banks of some
developed countries. Legislative reforms in other sectors such as investment and agriculture have been
undertaken aiming to bring them in conformity with the WTO rules. The amendment of the Law on
Investment is being debated to respond to two main objectives: increase government revenues and
maintain the competitiveness of Cambodia. Technical assistance are provided by internationalorganizations such as the International Monetary Fund (IMF), World Bank, FIAS, and the Asian
Development Bank (ADB). The Ministry of Agriculture, Forestry and Fisheries has a plan of action for
amending its existing laws and regulations to bring them in lines with WTO Agreement on Agriculture
and Agreement on the Application of Sanitary and Phytosanitary Measures. For further information,
please see the submission “Legislation: Implementation Agenda”.
Question 17
Please report on the status of the assistance proj ect to establish the Law on Civil Code and Civil
Procedure (1999-2001).  Will this law address the due process requirements of Article X and the
WTO Agreements?   What is Cambodia’s plan a nd timetable for establishing a clear-cut right of
appeal to an independent tribunal for administrative decisions?
Answer:
Currently, there is a technical assistance project from Japan to draft the Civil Code and Civil Procedures
Code. Main parts of the draft Civil Code will be completed by March 2002 and the whole draft of Civil
Code will be finalized by March 2003. The draft Civil Procedure Code will be finalized in March 2002.
The Civil Procedures Code will comply with the due process requirements of Article X of the GATT
Agreement (the due process provisions is provided in Articles 2, 3 and 4 of the Code). The general
provisions of the Civil Procedures Code provide for the right of access to the court system. The courts
shall make efforts to ensure that civil actions are adjudicated in a fair and efficient manner. In both civil
and criminal cases, the parties concerned have two months to appeal against the judgments rendered by
the courts presently. As long as the draft Civil Procedure Code is concerned, the period of appeal is oneWT/ACC/KHM/6
Page 8
month (Article 264 of the Draft Civil Procedure Code ). The party against whom a default judgment was
issued is entitled to petition for setting it aside. Th e statutory period for the petition to set aside is 15 days
presently and run upon the service of the default judgment. Relating to the new draft Civil Procedure
Code, the period for the petition to set aside is two weeks (Article 204).
Currently, there are 3 recourses for traders and investors to review or appeal administrative decisions
taken by the national administrations:
- recourse to the proper official who makes decision in order to revise the decision.
- recourse to higher authorities in the administration.
- recourse to an independent  tribunal, especially to the Administrative Chamber of the
Appellate Court. Pursuant to Chapter III of the draft Law on Judicial Organization
(Articles 20 and 24), the Administrative Chambe r of the Appellate Court has jurisdiction
over administrative cases and acts as the court of the first instance. Its decisions are
subject to appeal before the Supreme Court that acts as the court of second instance .
Question 18
While administrative decisions can be appealed through the courts, there does not appear to be an
appeal process of the kind required under GATT Article X(3).  What are Cambodia's plans in this
area?
Answer:
Please see answer to Question 17.
Question 19
We appreciate the listing of legislation in the re sponse to Question 37.  It does not, however,
adequately respond to the request for information.   Cambodia should provide the Working Party
with information on the aspects of these laws that  address WTO issues and a sense of when the laws
will be enacted.
Answer:
Please see answers to Question 15 and16.
Question 20
We would appreciate copies of the following draft laws for review, and any others that address
Cambodia’s efforts to implement WTO:
- draft Commercial Contract Law;
- draft Law on Business Organizations;
- draft Commercial Arbitration Law;
- draft Trade Marks Law;
- draft Law on the Establishment of a Commercial Tribunal;WT/ACC/KHM/6
Page 9
- draft Law on Insurance;
- draft Law on Export Processing Zone;
- draft Law on Patents and Industrial Designs;
- draft Law on Customs Code;
- draft Copyrights and Related Rights Law;  and
- draft Law on Cambodia National Standards Institute.
Answer:
The draft Law on Insurance was enacted on July 25, 2000. The law and its implementing sub-decree will
be submitted to the Working Party.
Some of the drafts mentioned in the question were made available to the secretariat and drawn to the
attention of Working Party Member s in ACC/KHM/5 (17 October 2001).
The draft Trade Marks Law and the Sub-Decree on Industrial Standards are being made available to the
secretariat.
The other drafts mentioned above will be made available as soon as practicable.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing
Question 21The right to import and to export goods is a fundamental part of the WTO.  This right should not
be abridged for either domestic or foreign firms or  individuals.  We distinguish the right to import
and export from the right of distribution.  Cambodia’s response to Question 49, page 19 of
document WT/ACC/KHM/3, referencing the  Prakas  on Trading Activities signed 25 January 2000
indicates that some barriers to foreign owned firms engaging in international trade have beenremoved, i.e., the requirement of 51 per cent of capi tal shares in a company to engage in import and
export transaction is eliminated, and both Ca mbodian and foreign companies that have been
registered with the Ministry of Commerce have the right to operate import-export businesses,
except as regards military equipment and narcotic dr ugs.  Please indicate what, if any, restrictions
remain on the right of firms and individuals to engage in import or export trade.
Answer:
All firms, foreign and domestic, that are properly registered with the Ministry of Commerce may engage
in import and export activities..
Question 22
Could Cambodia describe the administrative process for a firm to amend their registration to allow
for importing or exporting of goods or services?WT/ACC/KHM/6
Page 10
Answer:
Under Article 17 and 18 of Law on Commercial Rules and the Commerce Registry, a firm is allowed to
amend its registration by submitting an application to the Ministry of Commerce to amend its
Memorandum and Articles of Association. Amendments can be made to include business objectives with
regard to import and export activities. The amended registration will be deposited at the Office of
Registry at the Ministry of Commerce.
Question 23
We remain concerned that the measures descri bed in Annex 7b:Section IV:2(B) of document
WT/ACC/KHM/2 describing the process for registering a limited company to the proper
Cambodian authorities, including the list of documents and letters that the limited company must
present including photos of directors and shareholders, continues to be unnecessarily burdensome
to larger firms with many stockholders, e.g., fo reign firms, and does not appear to apply to
domestic firms.  We would appreciate a more deta iled presentation by Camb odia on its corporate
registration requirements as they are applied to foreign and domestic firms.
Answer:
There are two types of limited companies, namely Private Limited Company and Public Limited
Company. For Private Limited Company the requirement to submit photos applies to both members of the
board of directors and the shareholders, as the latter  are limited to a maximum of 30 individuals only. For
Public Limited Company the requirement to submit photos applies only to members of the board of
directors. The purpose of having the photos requirement is for security reasons, particularly for the
prevention of fraud. We believe that it would not create any obstacles for companies to meet this
requirement.
Question 24
Regarding the response to Question 47, why there is a distinction on the fee to be paid for
investment project application approval depending on the value of the project?  How this conform
with Art. VIII GATT?  Is that correct that the prior approval of the investment project is a pre-
condition to obtain the import license?
Answer:
Different fees apply to different investment project applications. The reason for this distinction is that
administrative expenses incurred for investment projec ts of routine nature, i.e simple technology are less
than those involving high technology and environmentally sensitive nature which required more
administrative and analytical services.
We understand that Article VIII of GATT 1994 does not apply to service charges for the assessment and
approval of investment project applications. The Article covers only charges for services rendered related
to importation of goods.
Import license for trading activities is not required prio r to approval of the investment project.  There is
no pre-condition to obtain import license prior to the approval of the investment project.WT/ACC/KHM/6
Page 11
(b) Characteristics of national tariff
Question 25
Can Cambodia specify which tariff lines are currently included under the 35 per cent tariff band?
Answer:
The Cambodian tariff lines as of 1 July 2001  with a 35% tariff rate cover mostly luxury goods and some
other finished manufactured products. As may be seen from the table below, 1,832 tariff lines areincluded in the 35% band. The 4-digit HS classifications that contain the 1,832 tariff lines are presented in
Annex III. The structure of the updated tariff bands is as follows:
0. Base rate 0% 7% 15% 35% Total
Tariff lines 297 2,758 1,936 1,832 6,823
Please also see answer to Question 26.
Question 26
Cambodia states that its tariff classification system conforms to the HS 96 nomenclature at the six-
digit level.  Please provide this in electronic  media, including current applied rates as soon as
possible.
Answer:
Cambodia’s updated customs tariff, at the eight-digit level, is being submitted to members of the Working
Party.
Question 27
In response to Question 54 (page 22 of document WT/ACC/KHM/3) Cambodia provides a table
outlining the characteristics of its new 2000 tariff nomenclature.  The table adds up to 6,822 lines or
99.7 percent of the full schedule.  There appears to be several lines not included in the current table.
(In an earlier table, Cambodia noted that nine tariff lines could not be allocated among the bands.)Could Cambodia explain why lines were not provided, their duty, and what products these lines
cover?
Answer:
The updated 2001 customs tariff of Cambodia, which conforms to the HS 1996, contains only 6,823 tariff
lines. There is no missing tariff line.
Question 28
Could Cambodia clarify the meaning of the follow ing column headings that appear in Annex III of
document WT/ACC/KHM/3:WT/ACC/KHM/6
Page 12
CD- Is this an abbreviation of Custom’s Duty?
ST- Please provide a definition of "ST".
VAT- Does this refer to Value Added Tax?
Exp- Is "Exp" an abbreviation for a preferential exemption?
Answer:
CD is Customs Duty
ST is Specific Tax (excise tax)
VAT is Value Added Tax
Exp is EXPORT
Imp is IMPORT
ET is Export Tax
Question 29
We are pleased to note that Cambodia has adopted the 1996 Harmonized Tariff.  We would also be
interested to know when we might expect Cambodia to submit a tariff offer so that bilateral
negotiations can be commenced.
Answer:
We expect to submit the tariff offer in the near future.
(c) Tariff quotas, tariff exemptions
Question 30
In response to Questions 55 and 57 (page 23 of document WT/ACC/KHM/3) Cambodia indicates
the Prime Minister may suspend import duties when there is a political or economic crisis or a
compelling reason of national interest.  As an illustrative example, Cambodia indicated duties were
suspended on imported automobiles for members of the National Assembly.  Please provide a
comprehensive list of current circumstances wh en custom’s duties are routinely suspended.
Answer:
Routine suspension of customs duties occurs as follows:
According to the provisions of the Article 9.1 of the Cambodian Law on Import –Export Duty adopted by
the National Assembly on 20 July 1989, the following items are imported free of customs duty:
1. Temporary import items for re-export, temporary export item for exhibition, trade fair
and advertisement.
2. Transit goods.
3. Goods belonging to Cambodian people working or learning abroad and purchased with
their own income.WT/ACC/KHM/6
Page 13
4. Gift or donation imported or exported by organizations, associations, or official
delegations.
5. Goods produced by people living along the border for border trade and whose quantity
will be determined by the Ministry of Finance.
Under the 1994 Investment Law, goods imported under investment project approved by CDC  are
exempted from customs duties.
In addition, as reported in the Answers to Questions 55 and 57 in KHM/3, the Prime Minister has the
authority to order ad hoc exemptions for compelling reasons of national interest. There are at present no
such exemptions in force.
Question 31
Does Cambodia currently exempt equipment, part s, and technical supplies required for airports in
connection with air services from customs duties?  What is the current rate of duty on imports of
aircraft and aircraft parts?
Answer:
There are no such exemptions. The current ad valorem rate of duty on aircraft and aircraft parts is 15%.
Question 32
Approximately what portion of imports enter duty free through tariff exemptions?  Through duty
free treatment accorded to imports from ASEAN?
Answer:
So far, there have been no imports from ASEAN countries at preferential tariff rates. See the table below
for information on duty forgone because of import duty exemptions.
Data on Duty Forgone from Tariff Exemption
(In Million Riels)
No.Fiscal
yearNGOs DiplomatsGarment
investorsOther
InvestorsExportsForeign
financial
assistance
in kindImport for
Re-exportObjects
and
Personal
affectsTotal
1 1998 - - - - - - - - 395.691
2 1999 19.077 6.932 485.585 10.341 1.230 41.847 56.682 27.526 649.220
3 2000 18.865 12.310 635.375 18.409 730 34.343 65.597 24.619 810.248
Source: Report of year 2000 from Customs and Excise Department.
Question 33
Does Cambodia expect to implement tariff rate quo tas upon accession to the WTO?  If so, on which
tariff lines?WT/ACC/KHM/6
Page 14
Answer:
The extent to which the introduction of tariff rate quotas on agricultural imports might be needed will
become clear during the market access negotiations.
(d) Other duties and charges, specifying any charges for services rendered
Question 34
In response to Question 76 (page 30 of document WT/ACC/KHM/3) Cambodia indicates the
Customs fee of 15,000 Riels (approximately US$4) charged for each export/import declaration
covers the cost of printing and time spent by custom’s officials.  Could Cambodia confirm that this
charge is applied to imports of all goods from all sources, e.g., is it exempted on imports from
preferential trading partners?
Answer:
The customs fee of 15,000 Riels charged for each export-import declaration to cover the cost of printing
is applied to imports of all goods from all sources.
Question 35
Approximately what number of declarations per month are processed and how many officials are
engaged in directly processing these declarations?
Answer:
Approximately 6,000 declarations/month, processed by about 100 customs officials.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 36
In response to Question 61 (page 25 of document WT/ACC/KHM/3) Cambodia indicates that it is
preparing an exhaustive list of import prohibitio ns (e.g., on narcotics and poisons).  When will such
a list be available to the Working Party?
Answer:
The list will be submitted in the near future.
(f) Import licensing procedures
Question 37
Regarding the response to Question 62, please indicate  the time needed to ob tain the import license.WT/ACC/KHM/6
Page 15
Answer:
As regards pharmaceuticals and vitamins, the time required to obtain a license for the first  consignment
of a product is 3 weeks, due to time needed for la boratory analysis. For subsequent shipments of the same
product, laboratory analysis is not required and licenses are granted in one week.
Question 38
Cambodia's import licensing system does not apply widely, and Cambodia claims that it is
consistent with the WTO.  Nonetheless, Cambodia will need to complete the questionnaire on
import licensing procedures for examination by the Working Party.
Answer:
The questionnaire was completed once but is in the process of being updated.
Question 39
Cambodia indicates in this section of document WT/ACC/KHM/3 that it does not require import
licenses for most goods coming into the country.  However, for certain goods, licenses are required.
In response to Questions 59 and 60 Cambodia indica tes its licensing regime is in conformity with
the Uruguay Round Agreement of Import Licensing without specifying how or why this is so.
Cambodia should review its resp onses and provide specific answers to these questions, including
further information on any system of licensing or prior import approvals.
Answer:
Please see answer to Question 38.
Question 40
Cambodia lists licensed goods in Annex 3 of document WT/ACC/KHM/2.  They include such items
as pharmaceuticals, vitamins, aircraft and parts, ships and boats, and hormones.  Are licenses for
these goods granted automatically?  Please describe the requirements and indicate why they are inplace.
Answer:
Import permits are granted to importers of pharmaceuticals, vitamins and hormones. However, those
items need to be registered first at the Ministry of Health prior to their application of the import permit.
According to the current situation in Cambodia, there are many problems concerning illegal activities
specifically on counterfeit pharmaceuticals and drugs trafficking. Therefore, the import permit also aims
at combating counterfeit pharmaceuticals and drugs trafficking.
There is a system of non-automatic licensing for imports of aircraft and parts, ships and boats when they
are for military purposes.WT/ACC/KHM/6
Page 16
Question 41
On average, how long does it take for Cambodian officials to grant import licenses?  Is the
information on how to obtain import licenses fo r these goods published in an official journal?
Answer:
Information on procedures to obtain import permit for the above goods is published in the Official Journal
of the Ministry of Health. Please see also answer to Question 37.
See answer to Question 37.
(h) Customs valuation
Question 42
While there has been some recent improvements in customs procedures, customs administration
and enforcement remains a serious concern as there are still significant barriers to trade through,
for example, duplication of work by customs agencies, customs red tape, delays in processing
documents, and over-valuations or inconsistent valuations.  We note references in Cambodia's
replies to customs administration reform.  It wo uld be helpful if Cambodia would provide in some
detail information on steps it is taking to ensure effective, transparent and fair administration and
implementation of its trade laws.
Answer:
The Cambodian Customs Administration is under the pr ocess of reform with the technical assistance from
the IMF and other donors. The Customs Reform Plan is herein attached in Annex IV. In this context,
Cambodia will seek a transitional period to bring its customs administration and valuation rules into
compliance with the WTO disciplines.
Question 43
Document WT/ACC/KHM/2, Annex 4, states that Cambodia has not adopted most of the provisions
of the WTO Customs Valuation Agreement.  It appears that several of the valuation procedures
presently being applied by Cambodia are in fact co ntrary to the provisions of the Agreement, e.g.,
the minimum import reference prices applied for imports of gasoline and gas oil, motor vehicles,
motorcycles, cigarettes, and gold bars.  Please li st these by HS number.  Cambodia should take
immediate action to begin replacing these measures with a more WTO-consistent regime.
Answer:
HS for Gasoline 27100021 to 27100027 27100031
Gas oils 27010071 27100072 27100073 27100079
Motor vehicles 8701 to 8705
Motor cycles 87111000 87112010 87112020 87113000 to 87115000Cigarettes 24021000 24022010 24022090 24029010 24029020
Gold bars 71081100 71081200 71081300 71082000WT/ACC/KHM/6
Page 17
For actions, please refer to the answer to Question 42.
Question 44
In its responses in document WT/ACC/KHM/3 Camb odia states that it is preparing a draft
Customs Code that will address its obligation to implement the WTO Agreement on Customs
Valuation.  Reference is also made to Customs Administration Reform.  Please provide copies of
these documents.  We will need to review them to proceed further with discussions on this aspect of
Cambodia’s accession.
Answer:
Please see answer to Questions 20 and 42.
Question 45
Cambodia has stated that it will submit its Cust oms Code for review by the Working Party after its
enactment.  We believe that this will be too late for comments by the WP that might assist
Cambodia in establishing a WTO-consistent reg ime, and we urge Cambodia to reconsider this
decision.
Answer:
Please see the answer to Question 20.
Question 46
Document WT/ACC/KHM/3 states that implementation of the Customs Code "will require
comprehensive training of customs officials and trading communities," and that a transitional
period and technical assistance will be needed.  In order to evaluate Cambodia’s request, we will
need to review Cambodia’s implementing legislation, have more precise information on the aspects
of the agreement that Cambodia is unable to im plement, and a sense from Cambodia of the
timetable it contemplates for full implementation and enforcement of the Agreement.
Answer:
See the answer to Question 42.
The regulations needed to implement the draft Customs Code will be submitted in due time.  Cambodia
will identify the difficult aspects of the agreement (Valuation) in order to request technical assistance. .
Under Article 20 of the Customs Valuation Agreement, Cambodia will also seek transitional period.
Question 47
We also would appreciate knowing if Cambodia is prepared to require that its Pre-shipment
inspection firm will be required to apply WT O provisions in its valuation operations after
Cambodia’s WTO accession, or is the PSI firm also claiming an LDC transition?WT/ACC/KHM/6
Page 18
Answer:
Cambodia’s new contract with the pre-shipment inspecti on firm explicitly requires the firm to perform its
duties in full conformity with the WTO Agreement on Pre-shipment Inspection.
Question 48
In order to assist Cambodia in evaluating the ke y areas where additional legislation and institutions
may be necessary, we have prepared the following indicative comments and questions:
Concerning the valuation hierarchy, transaction va lue as defined in Article 1 is the preferred
method of appraisement, followed by the transaction value of identical merchandise, the
transaction value of similar merchandise, the deductive value, computed value, and finally the
fallback method.  We suggest that Cambodia’s legislation implementing WTO adopt the provisions
of these Articles.
Answer:
The valuation hierarchy is fully reflected in the draft Customs Code.
Question 49
We note that in most countries, the vast majority  of customs entries are accepted on the basis of
invoice value.  Is this the case in Cambodia?  Does Cambodia foresee specific problems with
reliance on invoice value for valu ation of most customs entries?
Answer:
Cambodia uses a PSI firm (See answer to Question 47). Cambodian Customs expects to encounter
difficulties, inter alia, arising from:
- unskilled customs officers, and
- under-valuation or  under-invoicing practices.
Question 50
Could Cambodia outline its cur rent method for dealing with cu stoms entries where use of the
invoice for the basis of valuation is not possible?
Answer:
Please see answer to Questions 47 and 49. For the purpose of customs valuation of imported goods valued
under the PSI threshold of US$4,000, Cambodia uses data on reference prices provided by the PSI firm.
Question 51
Concerning the prohibited basis of appraisement, in accordance with Article 7 of the Agreement,
customs value may not be based on 1) the selling price in the country of importation; 2) a system
that provides for the acceptance for customs purposes of the higher of two alternative values; 3) theWT/ACC/KHM/6
Page 19
price of goods on the domestic market of the country of exportation; 4) the cost of production other
than compute values which have been determined fo r identical or similar goods; 5) the price of the
goods for export to a country other than the coun try of importation; 6) minimum customs values;
or 7) arbitrary or fictitious values.  Does th e current Cambodian law contain reference to these
prohibited methods for valuation?  Does Cambodia currently use any of these methods?  If so, what
are the circumstances that require this, and what consideration has been given to revising these
procedures to meet WTO obligations?  We would be interested in Cambodia’s views on how such
methods could be converted to a WTO-consistent method.
Answer:
Cambodia uses a PSI firm. Please see the answer to Question 50. Cambodia presently sometimes uses
methods 2) and 6) listed in Article 7. However, the revised draft of the Customs Code will reflect fully
Article 7 of the Customs Valuation Agreement. The draft Customs Code will be made available as soon
as practicable.
Question 52
Confidentiality and transparency, Cambodia states in document WT/ACC/KHM/2, Annex 4 that
no protections exist in Cambodia’s laws for the t reatment of confidential information in accordance
with the Article 10 of the Agreement.  No tran sition should be necessary to provide for such
protections in Cambodia’s laws.
Answer:
The draft Customs Code will provide for WTO-compliant treatment of confidential information.
Question 53
Article 12 of the WTO Agreement ensures publication  of laws, regulations, judicial decisions and
administrative rulings regarding the valuation of merchandise.  Articles 11.3 and 16 of theAgreement provide that importers have the right to a written explanation of how judicial and
administrative valuation decisions were determ ined.  Document WT/ACC/KHM/2, Annex 4 states
that changes to legislation and regulations are no tified through the media and provided only to the
30-50 largest importers.  Are any of the transparency or due process requirements of the
Agreement provided for in Cambodia’s legislation?   Are these protections provided by the PSI firm
valuing Cambodian imports?  If not, we believe Cambodia should develop a plan for establishing
such protections for Customs rulings, and should consider extending such measures to other areas,
e.g., in the application of taxes and fees to imports and the granting of licenses and other prior
authorizations for importation.  We do not beli eve that provision of such protections requires a
transition.
Answer:
Cambodia takes note of the transparency requirement. Cambodia regularly publishes in the Royal
Government Official Gazette all changes of legislation and regulations in a transparent and non-
discriminatory manner.WT/ACC/KHM/6
Page 20
Under the PSI contract, a Working Committee is established to which an importer may appeal any
decision by the PSI firm. All Committee decisions are issued in writing. The draft Customs Code reflects
fully the transparency and due process requirements of the Customs Valuation Agreement.
Question 54
Concerning bonded entries, when it is necessary to delay the final determination of the customs
value, Article 13 of the Agreement grants importers the right to withdraw their merchandise
provided they obtain sufficient guarantee in the form of a surety or deposit to cover the ultimate
payment of customs duties.  Does Cambodia’s current law provide for bonded entry of merchandise
under these circumstances?  If such a system does not exist, we suggest that Cambodia adopt one.
If such a system exists, we suggest that it be explicitly included in its customs law and regulation to
ensure transparency.
Answer:
Cambodian regulations provide to importers the right to withdraw their merchandise provided  sufficient
guarantee in the form of a surety or deposit to cover the ultimate payment of customs duties is made. This
procedure is included in the draft customs code.
Question 55
Concerning the interpretative notes, in acco rdance with Article 14 of the Agreement, the
Interpretative Notes to the Agreement are an integr al part of the Agreement.  The articles to the
Agreement are to be read and applied in conjunction  with their respective notes.  Accordingly, in
order to fully implement the Agreement, Cambodia should include the interpretative notes in its
legislation.
Answer:
We will take into account the Interpretative Notes to the Agreement when drafting the implementing sub-
decree and prakas.
(j) Pre-shipment inspection
Question 56
We understand Cambodia's need to apply PSI but, judging from the questions asked and replies
provided, there may be some areas where the PSI arrangements might need to be modified. This
area will be monitored closely though we welcome Cambodia's statement (see reply 84) that it
intends to ensure consistency with the WTO.
Answer:
Please see answer to Question 47.WT/ACC/KHM/6
Page 21
Question 57
Cambodia states that the PSI customs fee is 0.80 percent.  This is a violation of Article VIII of the
GATT, in that the fee is not related to the appr oximate cost of services rendered.  How soon can
Cambodia alter this fee structure to meet WTO requirements?
Answer:
Upon the expiration of the PSI contract, any new or modified contract will stipulate that the fee be in
accordance with Article VIII of GATT 1994, by requiring the PSI firm's fee to be commensurate with the
service rendered, not with the value of the goods inspected.
Question 58
Please provide specific and detailed responses to Question 86.  PSI firms that provide customs
services mandatory for importation and exportation must operate in a manner consistent with
WTO requirements.  If this is not the case, then Members so not receive the benefit of WTO
protections for their exports.  Cambodia should revie w its PSI contract to ensure that it is the case.
Answer:
Please see the answers to Questions 47 and 57.
Question 59
The PSI fee being ad valorem contrasts with Art. VIII GATT.  How does Cambodia intend to bring
the fees charged for PSI operations in line with  the WTO Agreement?  Cambodia is seeking a
transitional period for the application of the customs valuation agreement;  we are seeking a
commitment that the transitional period will not apply to the PSI company.
Answer:
Please see the answers to Questions 47 and 57.
(k) Application of internal taxes on imports
Question 60
Cambodia confirms that no other duties or char ges besides custom’s duties, excise tax, and VAT
are applied to imports.  The table listing Cambodia’s excise taxes found on page 30 of document
WT/ACC/KHM/3, however, appears to cover only imported automobile parts.  Does Cambodia
produce any automobiles or parts domestically?
Answer:
- Excise tax is imposed on both goods imported and domestically produced.
- Cambodia doesn’t produce any automobiles or parts for the time beingWT/ACC/KHM/6
Page 22
Question 61
Please provide specific and detailed responses to Question 89.
Answer:
The description of VAT regime and exemption are detailed in the 1997 taxation law, which was
previously submitted to the Working Party.
Question 62
We understand that in late 1998, the National Assembly passed a 3 percent tax applied solely to
imported alcohol and tobacco products, which was intended to go into effect in September 1999.  Is
this tax still in effect?  Please give the lega l citation for the author ity to apply this tax.
Answer:
The 3 percent tax applied to imported alcohol and tobacco, which is still in effect, is not in conformity
with GATT Article III. Steps are currently being ta ken to apply the tax also to similar domestically
produced goods and it is anticipated that it will be so applied beginning on 1 January 2002.
Question 63
Concerning taxes on agricultural goods, does Ca mbodia levy VAT on domestically produced raw
agricultural products?  On imports of similar products?
Answer:
The domestically produced raw agricultural products are not subject to VAT. In addition, some imported
raw agricultural products are also exempted from VAT. See Annex V.
Question 64
We welcome the introduction and the broadening of  the value added tax system to replace turnover
and consumption taxes.  We note also that Cambodia claims that the VAT is applied in accord with
the national treatment obligations of GATT Article III.  However, we understand that manybusinesses, particularly local companies, in practice still do not pay VAT and/or other taxes.  What
plans does Cambodia have to bring the VAT system into conformity with the national treatment
provisions of the WTO Agreements?
Answer:
The VAT system applies to all companies, whether fo reign or local, provided they are classified as
companies in the real regime (that is, to be taxe d on the basis of bookkeeping records.) The VAT was
introduced in 1999 for about 1,000 large enterprises in Phnom Penh. As a result of broadening the VAT
base to include 5 other provinces, the number of large enterprises subject to VAT has increased
significantly from about 1,000 in 1999 to approxim ately 2,900 in 2001. Small taxpayers who are natural
persons with annual turnover less than 500 millions Riels for goods supply, 250 millions Riels for otherWT/ACC/KHM/6
Page 23
services supply and 125 millions Riels for goods supply to the state are not subject to VAT. Instead they
are subject to a 2% turnover tax.
(l) Rules of origin
Question 65
We seek a commitment from Cambodia that upon accession its laws and regulations on rules of
origin would be applied in conformity with the provisions of the WTO Agreement on Rules of
Origin.  We also seek confirmation that Cambodia’s laws will be amended to incorporate the
requirements of Article 2(h) and Annex II, paragraph 3(d), i.e., that for non-preferential and
preferential rules of origin, respectively, the cu stoms authority will provide upon the request of an
exporter, importer or any person with a justifiable cause an assessment of the origin of the import
and outline the terms under which it will be provided, and that any request for such an assessment
would be accepted even before trade in the goods concerned began.
Answer:
We will take into account the provisions of WTO Agreement on Rules of Origin when developing the
legislation in this area.
(m) Anti-dumping, countervailing duty and safeguard regimes
Question 66
We seek an appropriate commitment in the Worki ng Party report that Cambodia will not apply
safeguard, antidumping or countervailing measures  without first notifying to the WTO legislation
covering such measures consistent with WTO Agreements.
Answer:
Cambodia will apply safeguard, antidumping or c ountervailing measures consistent with WTO
Agreements, including their procedural aspects, when it becomes a WTO member.
2. Export Regulation
Question 67
Cambodia applies export taxes and restrictions on several products.  Export taxes are currently
permitted by WTO rules.  Export restrictions, however, can only be applied under tightly defined
conditions, and it is not clear that Cambodia's poli cies meet these.  We wi ll need to examine this
further.
Answer:
Cambodia from time to time is obliged to impose export restrictions on rice, in the circumstances allowed
by GATT Article XI.2.a. It imposes an export ban on round and sawn logs, and requires export licenses
for wood products, as allowed by GATT Article XX (g).WT/ACC/KHM/6
Page 24
Question 68
Cambodia’s export licensing restrictions on rice and logs appears to violate Article XI, as they are
applied for economic rather than conservation reasons.  Are there restrictions on domestic
production in parallel with the export restrict ions?  How does Cambodia plan to replace these
measures with WTO-consistent instruments?
Answer:
Please refer to answer to Question 67. Cambodia’s export prohibitions on logs are applied for purely
conservation reasons. All cutting of wood requires ownership of a valid concession and a permit from the
Ministry of Agriculture. These constitute a restriction on domestic production.
Question 69
Concerning export duties, does Cambodia apply any ex port duties in addition to the ones listed in
document WT/ACC/KHM/2, e.g., other than for seafood, breeding animals, lumber, plywood,
natural rubber, charcoal, etc.?  What portion of government revenue is derived from thesecharges? Are these charges exempted, e.g. in trade with ASEAN countries?
Answer:
The Cambodian export taxes are detailed in column ET of the customs tariff, an updated version of which
is being submitted to the Working Party.
Export tax collected by Customs and Excise Department is as follows:
1999 2.03% of Customs revenue and 1.03% of tax revenue
2000 2% of customs revenue;
There is no export tax exemption specifically granted to ASEAN countries.
3. Internal policies affecting foreign trade in goods
(b) Technical regulations and standards, including measures taken at the border with respect
to imports
Question 70
We understand that Cambodia can experience diffic ulties in adapting national standards, where
they exist, to international ones.  However,  Cambodia should strongly consider the use of
international standards in areas wh ere national ones do not exist yet.
Answer:
Please see Cambodia’s submission of ACC/8. Cambodia will consider the use of international standards
in areas where national standards do not exist.WT/ACC/KHM/6
Page 25
At present Cambodia refers to international stan dards such as ISO, Codex Alimentarius, Britain
Pharmacopoeia (BP), US Pharmacopoeia (USP), Japan Pharmacopoeia (JP), France Pharmacopoeia
(Codex), and International Pharmacopoeia (IP).
Question 71
Regarding the response to Question 126, the reply seems contradictory.  Cambodia accepts
equivalent certificates but then these certificates are checked and tested.  Please clarify theprocedure and its coverage.
Answer:
Please see Cambodia’s submission of ACC/8.
Cambodia welcomes and accepts any equivalent certificate from third country certification bodies where
those certification bodies or testing laboratories are accredited by any accreditation body which is a
member of the International Accreditation Body or  Regional Accreditation Bodies and a signatory to a
mutual recognition arrangement, i.e. IAF, ILAC, PAC, APLAC.
An equivalent certificate on quality of pharmaceutical products from the third country certification bodies
is accepted for registration and importation. However, laboratory testing is still needed for registration
only. This is just to confirm whether the samples s ubmitted are in conformity with the certificate or not.
No checking nor testing is required during importation once products are registered.
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 72
We strongly suggest that Cambodia complete and submit the checklists on TBT and SPS contained
in document WT/ACC/8.  This can serve as a blueprint to areas in its current legislation that may
not address WTO provisions.  Please provide separate documentation using the format given in
WT/ACC/8, with specific reference to the legislative, administrative, or procedural basis forcompliance with the provisions of the WTO TBT and SPS Agreements.  Without such information,
we cannot evaluate Cambodia’s request for transitional periods and technical assistance.  If the
relevant legislation or administrative procedures are not yet in place, please indicate when
Cambodia intends to develop these laws or procedures.
Answer:
Please see Cambodia’s submission of ACC/8.
Question 73
Please respond directly to Question 133.
Answer:
Please refer to the answers to Questions 70, 71 and 72, and to Cambodia’s submission of ACC/8.WT/ACC/KHM/6
Page 26
Question 74
Cambodia intends to seek a five-year transition period to implement the SPS Agreement.  We note
that assistance will be needed.  We would hope that Cambodia could progressively take steps
towards implementation of a WTO-consistent regime at an early stage.  It would be helpful if
Cambodia could provide more detailed information on its reform plans in this area, including on
procedural and transparency matters such as establishment of an enquiry point.
Answer:
Please see Cambodia’s submission of ACC/8.
Cambodia is considering your recommendation in taking progressive steps to bring our SPS regime to be
consistent with the WTO rules as soon as possible, including procedures, transparency and the
establishment of the enquiry point.
Question 75
Cambodia recently introduced a three month temporary ban on the importation of meat, meat
products and associated dairy products from certain EU countries.  While the ban is limited to
those countries, we understand that it is being interpreted and implemented by some customs
officials to include other countries.  What plans do es Cambodia have to ensure that its customs and
SPS regimes are applied in a non-discriminatory manner?
Answer:
Three-month temporary ban on the importation of meat s, meat products and associated dairy products
from EU has been extended for another three months, and will be extended further if circumstances
require such extension  The measure has been introduced to prevent the spread of disease from EU, which
may harm  human health and animals in Cambodia. This measure is consistent with point (b) of Article
XX of GATT 1994. Cambodia takes note of Australia' s concerns on the misinterpretation of the measure.
Affected importers should file a complaint with the Customs authority.
(d) Trade-related investment measures
Question 76
Do the terms of foreign invested-firms registration with the Ministry of Commerce ever provide for
measures that are covered by the WTO TRIMs Agreement?WT/ACC/KHM/6
Page 27
Answer:
No.
(e) State-trading practices
Question 77
In response to Question 138 (page 60 of document  WT/ACC/KHM/3) Cambodia states that 11 of
the 24 State-owned Enterprises engage in foreign trad e activities for products such as rice, rubber,
fertilizer, fishery products, pharmaceutical products and agricultural equipment.  Please provide
more detailed information on the types of trad e activities in which these eleven State Owned
Enterprises are engaged and how prices and quantities traded are determined.
Answer:
The Green Trade Company, which manages Cambodia’s national rice reserve, may receive funding from
the government. All other state owned enterprises operate on the same footing as private sector firms, i.e.
prices and quantities are determined in accordance with commercial considerations. Other state-ownedenterprises are not STEs in the meaning of the WTO.
Question 78
Cambodia has made significant progress in privatization of SOEs (see Annex 3).  It appears that
only 16 SOEs remain, with about half of these in  the agriculture sector.  It would be helpful if
Cambodia could further elaborate on its plans fo r these SOEs and their role.  In particular,
Cambodia will need to explain and address the consistency of their operations with GATT Article
XVII, although Cambodia claims that no new sp ecial privileges are accorded to such entities.
Answer:
Please, refer to the replies to the Questions 11 and 77. In addition to these replies, of the 9 state owned
enterprises engaged in agricultural activities, 7 SOEs dealt with the production and export of naturalrubber and another one dealt with the import of fert ilizers, pesticide and agricultural equipment. We
reaffirm that there are no special privileges accorded  to these enterprises. As regards the Green Trade
Company, see the answer to Question 77.
(l) Government procurement practices
Question 79We take note of the response to Question 142 concer ning Cambodia’s interest  in membership in the
Government Procurement Agreement.  We rema in convinced that with a relatively open
procurement market, Cambodia will profit from membership in the Government Procurement
Agreement.WT/ACC/KHM/6
Page 28
Answer:
Cambodia understands that the Agreement on Government Procurement is a plurilateral agreement and as
mentioned in Document WT/ACC/KHM/3, Question 142 Cambodia has no intention to join the
Agreement on Government Procurement, at least at the time of its accession to the WTO.
- Core labour standards
Question 80Paragraph 4 of the 1996 WTO Singapore Declaration obliges all WTO members to observe
internationally recognized core labour standards.  With regards to Cambodia’s application to the
WTO in this area, the 1997 Cambodian labour la w is fairly comprehensive in defining and
protecting internationally recognized workers’ righ ts.  Implementation of core labour standards in
Cambodia nevertheless continues to be problematic.  We note reports of problems concerning
issues of freedom of association, specifically anti-union discrimination, including harassment and
unwarranted dismissals of union leaders.  We are also  concerned over reports of required overtime,
including excessive overtime, with improper overtime pay.  We urge Cambodia to continue with the
necessary steps to insure its commitment to implem enting core labour standards.  We look forward
to continuing consultations with Cambodia on th is area in bilateral and multilateral contexts.
Answer:
Cambodia has been strengthening the implementation of the Labor Law and Core Labor Standards,
especially on labour conditions, freedom of association, health and safety at the work place. Cambodia is
pleased to continue to engage in further bilateral and multilateral consultations on this area. However
Cambodia understands that labour standards are not, except for prison labour, covered by WTO
agreements.
4. Policies Affecting Foreign Trade in Agricultural Products
Question 81
Cambodia states in the response to Question 18 and in Annex II of document WT/ACC/KHM/3
that it has privatized 24 State-owned agricultural enterprises.  Of the 7 State-owned agricultural
enterprises currently in transition to privatizatio n, could Cambodia please provide a timetable as to
when these enterprises will be fully privatized or closed?
Answer:
The Agricultural Inputs Company will be kept as a State-Owned enterprise. Discussions are taking place
with regard to the status of state owned enterprises in the rubber sector.
Question 82
In addition, in order to more fully understand th e operations of these state-owned enterprises,
could Cambodia explain each enterprise’s role in the production, marketing and/or trading of
agricultural products or services.WT/ACC/KHM/6
Page 29
Answer:
Please see answer to Questions 77 and 78.
Question 83
In the reply to Question 104, Cambodia indicates that it reserves its right to maintain temporary
export restrictions on rice to prevent or relieve critical shortages of foodstuffs, as provided under
Article XI:2(a) of the GATT 1994.  Could Cambodia outline the criteria it will use to evaluate if anexport restriction is warranted and when it should be lifted?
Answer:
Please see page 31 of KHM/2. Export restrictions are applied when a market analysis, which includes
estimates of total demand and production of rice, indicates that there will be a significant shortfall in rice
availability and/or a sharp increase in rice prices. Th e same applies, in reverse, for the removal of export
restrictions.   
Question 84
What has Cambodia’s export experience with rice in recent years?  Does Cambodia import rice?
Answer:
Please see tables below for details.
Imports of Rice in 1999 and 2000
Year Import From Quantity (Ton) Value (Riel)
1999 France
Hong-KongJapan
Singapore
VietnamThailand1,694
817.20
10,881,883
18,499.40
2,000,000
21,266,619
Total: 34,169,512.602,934,542
1,561,793
11,883,587,325
24,552,144
1,821,569,100
10,413,511,438.05
Total: 24,147,716,342.05
2000 Philippines
Monaco
Puerto Rico
VietnamJapanSingaporeChinaThailand
Guam
India15
2,292
8,976,363
18,643,468
40
1,159,364.25
13,434
31,767,800
82,000
1,350.10
Total: 60,646,126.35487,126
4,078,895
9,658,615,744
9,183,678,620
195,393
1,229,524,107
5,252,694
9,940,822,826
90,962,325
2,444,400
Total: 30,116,062,130
2001WT/ACC/KHM/6
Page 30
Exports of Rice in 1999 and 2000
Year Exports to Quantity (Ton) Value (Riel)
1999 Australia
ChinaIndonesiaMalaysiaSingapore21,000
120,000550,000220,000
2,200,000
Total: 3,111,00023,971,500
91,494,000
424,270,000195,143,850
1,780,270,404
Total: 2,515,149,754
2000 Singapore
MalaysiaThailandIndonesia1,014,500
700,000
1,816,000
500,000
Total: 4,030,500803,031,203
907,489,380
1,286,225,460
64,002,250
Total: 3,060,748,293
2001
Source: Cambodian Customs Statistics
Question 85
In its reply to Question 108, Cambodia indicated th at it limits export licensing on rice to avoid
dominant position among rice exporters and to help control fluctuating rice prices.  Are any of
Cambodia’s State-owned agricultural enterprises producing or trading in rice?  If so, with
privatization efforts underway, how does Cambodia intend to curtail the monopoly practices of rice
exporters?
Answer:
Please see the answer to Question 77. There are no monopoly practices of rice exporters.
Question 86
Please provide responses to Question 108, includi ng reference to justification of the export
restrictions in the Agreement on Agriculture.
Answer:
Please see answer to Question 67.
Question 87
Could Cambodia please indicate what goods would be eligible for duty drawback should such a
scheme be invoked? What criteria would be used to determine if, and how much duty drawback agood might receive?WT/ACC/KHM/6
Page 31
Answer:
For the purpose of trade facilitation and in order to promote the development of SMEs, Cambodia is
considering using the duty drawback scheme and wi ll inform the Working Party about the goods eligible
for duty drawback scheme when it will be introduced.
Question 88
We note that Cambodia has yet to provide WT/ACC/4 information to the Working Party for
review.  This information be provided for domestic agricultural support policies and export subsidy
policies as soon as possible.
Answer:
Please see Cambodia’s submission of  ACC/4.
Question 89
In Annex 4.2 Cambodia states that custom’ valuat ion is based on the invoice price and the market
prices. Could Cambodia provide more detailed information on its custom’s valuation proceduresand confirm that the invoice price for each specific transaction will be used rather than an average,
constructed or proxy price.
Answer:
Please see answers to Questions 47, 49 and 51.
Question 90
In regards to Cambodia's response to Question 149 in document WT/ACC/KHM/3, we would like
to clarify that least developed countries are not required to make reduction commitments.
Nevertheless, the commitment of zero export subsidy would prevail since Cambodia has not
provided export subsidies in the past.  Can Cambodia confirm that this will be the case?
Answer:
At the moment, Cambodia has no export subsidy. As a least developed country, Cambodia retains its right
to introduce export subsidy under Article 9 (d) and (e) of the Agreement on Agriculture.
Question 91
Cambodia has indicated that it will provide information on domestic support in the format of
document WT/ACC/4 as soon as possible.  This will be welcome.  We are pleased to note thatCambodia has no plans to introduce export subs idies at this stage and see this as a positive
development.
Answer:
Please see answer to Questions 88 and 90.WT/ACC/KHM/6
Page 32
V. TRADE-RELATED INTELLECTUAL PROPERTY RÉGIME
Question 92
We note that Cambodia has further work to do  in this area and that various laws are in
preparation.  We also note that Cambodia is not yet a member of Conventions such as Berne.  We
would welcome the checklist in the format of document WT/ACC/9 as soon as possible (see reply
161).  This will be helpful.  Cambodia intends to  seek a transition period (see reply 156) and this
will need to be considered along with other su ch requests depending on duration and coverage.
Answer:
The draft law on Copyright and Related Rights of Ca mbodia, which has been made available to members
of the Working Party, is undergoing further review to ensure full conformity to the TRIPS Agreement.
After having adopted law on Copyright and Related rights, Cambodia will join the Bern Convention.
Question 93
Many of these questions refer to the section of the Memorandum on the Foreign Trade Regime
(document WT/ACC/KHM/2) dealing with Trade Rela ted Aspects of Intellectual Property portion,
submitted by the government of Cambodia as part of its WTO accession process.  We are reviewing
Cambodia’s intellectual property laws provid ed in document WT/ACC/KHM/3/Add.3, and look
forward to reviewing areas where amendments or new laws may be necessary to implement the
WTO Agreement on TRIPS.  We suggest, in the interim, that Cambodia respond to the followingquestions and use the checklist in document WT/ACC/9 to analyze its system and determine where
additional provisions or institutions may be necessary.  We look forward to receiving information
on Cambodia’s IP system using the checklist in document WT/ACC/9.
Answer:
Please see Cambodia’s submission of ACC/9.
Question 94
Under 4(a) of document WT/ACC/KHM/2, page 70, the government of Cambodia indicates it is
preparing a special Sub-Decree to address the amount  of damages to be calculated in a case of
infringement.  Please let us know the status of the Sub-Decree and provide us with a copy.
Answer:
The intention to prepare a special Sub-Decree to evaluate damages to be calculated in a case of
infringement can't be materialized for want of jurisdiction. The damages should be calculated on a case-
by-case basis as the court warrants.
Question 95
Concerning other aspects of Cambodia’s laws on inte llectual property protection, what is the status
of the draft Law Concerning Marks, Trade Names and Acts of Unfair Competition, and provide us
with a copy of the law.  Please provide us a copy of the law either in draft or final form.WT/ACC/KHM/6
Page 33
Answer:
Cambodia is providing the draft Law on Marks, Trade Names and Acts of Unfair Competition to the
WTO Secretariat. The draft law was approved by the Council of Ministers on October 27, 2000.
Cambodia expects that the draft law would be ratified by the National Assembly at the end of year 2001
or the beginning of the year 2002.
Question 96
What is the status of the Marks Protection Act, the Patent Law and the Design Law, which,
according to document WT/ACC/KHM/2 have already been submitted to the Council of Ministers
for enactment.  Please provide us with a copy of the law if one is available.
Answer:
Please see the answer to Question 95. Cambodia is providing the draft Law on Patents, Utility Models,
and Industrial Designs to the WTO Secretariat. This draft was approved by the Council of Ministers in
October 2001, and submitted to the National Assembly for adoption.
Question 97
Please describe the remedies that the intellectua l property enforcement related laws of Cambodia
provide for infringing goods (i.e., destruction, disp osal or both), as required by TRIPS Article 59.
Answer:
Article 46 of the draft law on Marks, Trade Names and Acts of Unfair Competition provides that the
Customs and other competent authorities, through the decision of the court, shall have the authority to
order the destruction of infringing goods. The Customs shall not allow the re-exportation of counterfeit
trademark goods or subject them to different Custom s procedures. The draft Copyright law will contain
equivalent provisions.
Question 98
Please state whether decisions on the merits in court proceedings are provided in writing and if
those written opinions are available to the public so that people can become familiar with the law.
Answer:
In practice, decisions on the merits in court proceedings are provided in writing and those written
opinions are available to the public by publication on newspaper. Moreover, we intend to publish thedecisions of court in the Official Gazette of the Ministry of Commerce.
Question 99
Please list and describe the functions of thos e government entities within the Government of
Cambodia that have intellectual  property enforcement authority.WT/ACC/KHM/6
Page 34
Answer:
There are the following intellectual property enforcement authorities of the Government of Cambodia:
Court(s):
On the request of the applicant, the Court shall order prompt and effective provisional measures
to prevent an infringement, an imminent infringement or to preserve relevant evidence in regard
to the alleged infringement (Article 29 of draft Trademark law). Moreover, decisions of theMinistry of Commerce can be reviewed by court(s) (Article 58 of draft Trademark law).
Customs Authorities:
The owner of any registered trademark may make application to the Customs or the competent
authorities or court to suspend clearance of goods suspected of being counterfeit by proving that
he is the owner of the registered mark (Article 35 of draft Trademark law).
Camcontrol, Ministry of Commerce:
Camcontrol is under the control of the Ministry of Commerce. This organization has full power to
inspect all commercial enterprises; manufacturers  for commercial ends;  importers, exporters and
merchants; service providers; advertisers of products, goods, and services; and civil associations
and non governmental agencies engaged in manuf acturing, commerce, or humanitarian relief.
Camcontrol is in charge of fraud repression and inspections of exported and imported goods
(Articles 1 and 26 of Law on the Management of Quality and Safety of Products and Servicesadopted on June 21, 2000).
Economic Police, Ministry of Interior:
The Economic Police works closely with Camcontrol throughout the territory of Cambodia for
fraud repression and inspections of exported and imported goods.
Question 100
To the extent not asked for above, please provide us with a copy of any and all laws of the
government of Cambodia relating to the enforcement of intellectual property.
Answer:
Please see the Law on the Management of Quality and Safety of Products and Services which was
provided to the WTO Secretariat.
Question 101
Do the judicial and administrative authorities in Cambodia have the authority as required in
TRIPS Article 44.1 to issue injunctions (or equivalent  measures) to order a party to desist from an
infringement and to prevent infringing goods fr om entering the channels of commerce?  Please
describe in detail the procedures for issuing such injunctions.WT/ACC/KHM/6
Page 35
Answer:
The Court and the Customs authority will have full power to issue injunctions or suspend clearance of
goods as required in TRIPS Article 44.1. Please see Chapter 9, Provisional Measures (Articles 29 to 34)
and Chapter 10, Border Measures (Articles 35 to 47) of the draft law on Marks, Trade Names and Acts of
Unfair Competition, relating to the detailed procedures  for issuing such injunctions.  The draft copyright
law will contain equivalent provisions.
Question 102
Please describe whether seizure, forfeiture and destruction of infringing goods and any materials
and implements are available as remedies in wilful trademark or copyright piracy cases.
Answer:
Article 30 and Article 46 of draft law on Marks, Tr ade Name and Acts of Unfair Competition and Article
59 of draft Copyright and Related Rights Law provided for seizure, forfeiture and destruction of
infringing goods, evidences and copies and equi pment installed for the purpose of committing the
offence. The draft copyright law wi ll contain equivalent provisions.
Question 103
Please briefly describe how the Government of Cambodia meets the requirements of TRIPS,
Article 41, including 41(1), 41(2), 41(4) and 41(5).
Answer:
According to the draft IP laws including Marks, Tr ade Name and Acts of Unfair Competition, Copyright
and Related Rights, and Patents, Utility Models and Industrial Designs (all of which have been, or are
being , made available)  Cambodia meets the requirements of TRIPS, Article 41, including 41(1), 41(2),
41(4) and 41(5).
VI. TRADE-RELATED SERVICES REGIME
Question 104
So far, only branches of the foreign banks have been established in Cambodia.  According to the
current provisions of the Law on the Supervision of Financial Institutions and subsequent
regulations, rules applicable to foreign banks, including prudential rules are exactly the same as
those applicable to locally incorporated banks.  Could Cambodia elaborate on the possible reasons
for the absence of establishment of subsidiaries of foreign banks?
Answer:
The banking system was recreated during the past decade. The necessary legal framework is being
gradually developed: the law on commercial banking was adopted only at the end of 1999 and the law for
specialized banking is under preparation. Along with the introduction of this legislation, which is aimed atcreating sound baking system, the banking sector has been undergoing structural reform which isWT/ACC/KHM/6
Page 36
expected to be completed in the course of this year . To date, two subsidiaries of foreign banks have been
established in Cambodia.
Question 105
We would be interested to know when Cambodia intends to submit a draft offer so that market
access negotiations can commence.  We note that Cambodia has undertaken to provide a reply to
the question on GATS Article VIII at a later stage.
Answer:
A draft offer is being submitted after approval by the Council of Ministers. Thereafter, Cambodia will be
ready to engage in market access negotiations on services. Cambodia is fully committed to the
implementation of the principles and provisions contained in the GATS, including Article VIII. Relevant
government authority will ensure that monopoly supplier does not abuse monopoly position outside the
scope of its monopoly rights in line with specific commitments that would be made.
Question 106
Cambodia states that as an LDC, it will need flexibility with respect to the time-limit within which
it will establish its GATS enquiry point.  Please de tail the aspects of establishing this enquiry point
that create such a burden on Cambodia’s sc arce human resources that it must delay its
establishment?  Within what timeframe does Cambodia intend to prepare to gradually meet these
"additional administrative requirements?"  Does Cambodia provide any of the information thatwould be provided by such an enquiry point now, e.g., to domestic services firms?
Answer:
As an LDC, Cambodia will need flexibility with rega rd to the timeframe for the establishment of its
GATS enquiry point.  To ensure that the enquiry point is fully operational, adequate human and financial
resources must be allocated. In addition, a system for the on-going exchange and updating of the relevantinformation must be established among the ministries and other agencies concerned. Technical assistance
is necessary in this respect, which would greatly facilitate the initiation of this process. At the present,
domestic firms may obtain information relevant to their operations from the Council for Development of
Cambodia, Chamber of Commerce a nd Department of Domestic Trade in the Ministry of Commerce.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH THIRD
COUNTRIES
Question 107
We take note of Cambodia’s statement concerning  preferential trade arrang ements in its response
to Question 183.  Does Cambodia grant any trad e preferences to any other countries or economies?
Answer:
There is no Question 183.  Cambodia acceded to ASEAN in 1999. Under the ASEAN framework,
Cambodia is required to grant its trade preferences to ASEAN member countries under various
agreements such ASEAN Free Trade Area (AFTA), ASEAN Framework Agreement on Services,WT/ACC/KHM/6
Page 37
ASEAN Investment Area, etc. In th is connection, we confirm that no trade preferences have been granted
to non-ASEAN member countries.
_______________WT/ACC/KHM/6
Page 38
ANNEXES
The following annexes are an integral part of the replies by Cambodia to the additional questions
posed by members of the Working Pa rty on Cambodia’s accession to WTO.
The annexes and the Questions and Replies relate to each other as follows:
Annex I is part of the reply to Question 9;
Annex II is part of the replies to Questions 11 and 13;Annex III is part of the reply to Question 25;
Annex IV is part of the reply to Question 42;
Annex V is part of the reply to Question 63.WT/ACC/KHM/6
Page 39ANNEX I
SECTORS OF MANUFACTURING INDUSTRY IN WHICH THERE ARE INVESTMENT RESTRICTIONS
ISIC Code Sectors/Industries Remarks  (Restrictions / Requirements)
I. Industries with Identical Restrictions on Both National and Foreign Investors
3698 Manufacture/processing of cultural items. In exceptional circumstances investment may be allowed subject to prior
approval from relevant ministries.
2021 Sawn timber, veneer, plywood, wood-based products utilizing local logs
as raw materials.No new licenses will be issued.
2411 DBSA Production.
Toxic chemicals affecting health of community and impacting toenvironment.Production of toxic chemicals or utilization of toxic agents.Some substances prohibited in accordance with an international treaty. Others
subject to prior approval from Ministry of Health and relevant Ministries.
2429 Manufacture of psychotropic substance (see attachment) -Prohibited for the psychotropic substances in Table I of the attachm ent to this
Annex.
-Subject to prior approval from ministry of Health for the psychotropicsubstances in Tables II&III in the attachment to this Annex.
2429 Manufacture/ processing of narcotic drugs Prohibited
2927 Manufacture of weapons and ammunitions National defense policy
N.A Manufacturing of firecracker and fireworks. In pr inciple prohibited; in practice subject to control
N.A  Manufacturing related to defense and securities National defense policy.
II. Industries with Restrictions that apply only to Foreign Investors
1600 Manufacture of cigarettes. only for export (100% export)
1551 Alcohol. Subject to prior approval from relevant Ministries.
2230 Movie Production. Subject to local equity participation.
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 Milling. 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.WT/ACC/KHM/6
Page 40ISIC Code Sectors/Industries Remarks  (Restrictions / Requirements)
III. Manufacturing-Related Services
2210 Publishing.
2212 Publishing of newspaper, journals and periodicals.
2213 Publishing of recorded media.
2219 Other publishing.
2221 Printing.
2222 Service activities related to printing.
9213 Radio and television activities.-Subject to discussion with Ministry of Information and
Ministry of Cultural and Fine Art.
-Foreign equity is restricted to maximum of 49%WT/ACC/KHM/6
Page 41SECTORS OF AGRICULTURE, FISHING, FORESTRY AND MINING IN WHICH THERE ARE INVESTMENT RESTICTIONS
ISIC Code Sectors/Industries Remarks  (Restrictions / Requirements)
1110
1110
0130
1110
11101110
1110A. AGRONOMY
1. Agronomy sectors closed to both   foreign and national
investors.
Estate Crops:
a) Medicinal/Traditional herbs.
b) Plantation of above.
2. Agronomy sector closed only to foreign investors
Genetic resources (bio-diversity)
3. Agronomy sectors with restrictions on foreign  investors.
All type ofi. Food Cropsii. Fruit cropsiii. Industrial crops, andiv. Processing industries.Business reserved for daily need of local farmer.
Environment Protection
On condition of partnership with the local farmers association and
conservation of sustainable natural resources (Applicable to all)
110001211100
1100
1100
1100
11001100110011001100B. LIVESTOCK
1. Livestock sectors closed to both foreign and national
corporations:- Native Chicken- Native Cattle and Buffalo- Native Duck
2. Livestock sectors with restrictions on foreign investors.
i. Chicken raising:
a)  Broilerb)  Layer
ii. Beef cattle raising
iii. Sheep raising
iv. Goat raisingv. Pig raisingvi. Duck raisingvii. Dairy cattle raisingviii. Horse RaisingBusiness reserved for national small-scale enterprises
On condition of partnership with small-scale enterprises ( applicable to
points 1 to 8)WT/ACC/KHM/6
Page 42ISIC Code Sectors/Industries Remarks  (Restrictions / Requirements)
1301
130113011301
1301
1301
0500C. FISHERY
1. Fishery sector closed to both foreign and national investors.
Fishing (Fresh Water)+ Catching of Fingerling+ Catching of Caplo Capio+Catching of Giant Fish+ Catching of Crocodile
+ Catching of Probatus
+ Jullieni Fish
2. Fishery sector closed only to foreign investors.
- Catching of Fresh water fish
3. Fishery sectors with restriction to foreign investors.(Endangered Species)
Reserved for small local enterprises
Refer to Fishery Law
0200
02000200
0200C. FORESTRY
1. Forest sectors with restrictions on foreign investors.
a. Forest Products (Finish Products)b. Zoologyc. Forest park
d. Forest plantation for industryOn condition of partnership with local partner.
Depending on rule, law and regulation of Cambodia's forest policy
2302
2901E. MINING
1. Mining sector closed to both foreign  and national investors.
+ Radioactive minerals (Uranium, etc)
2. Mining sector closed only to foreign investors.
+ Small Scale mining
3. Mining sectors with restrictions on foreign investors.National security
Reserved for local people
All foreign investments should be carried out under contract of worksWT/ACC/KHM/6
Page 43Attachment to Annex I:  Psychotropic Substances
Table I: Convention 1971
1. BROLAMFETAMINE
2. CATHINONE
3. DET
4. DMA
5. DMHP
6. DMT
7. DOET
8. ETICYCLIDINE
9. +)-LYSERGIDE10. MDMA
11. MESCALINE
12. 4- METHYLAMINOREX
13. MMDA
14. N-ETHYL-MDA
15. N-HYDROXY-MDA
16. PARAHEXYL
17. PMA
18. PSILOCTNE, PSILOTSIN19. PSILOCYBINE
20. ROLICYCLIDINE
21. STP,DOM
22. TENAMFETAMINE
23. TENOCYCLIDINE
24. TETRAHYDROCANNABINOL
25. TMA
Table II: Convention 1971
1. AMFETAMINE
2. DEXAMFETAMINE
3. FENETYLLINE
4. LEVAMFETAMINE5. MECLOQUALONE
6. METAMFETAMINE
7. METHAQUALONE
8. METHYLPHENIDATE9. PHENCYCLIDINE
10.  PHENMETRAZINE
11. METAMFETAMINE RACEMATE
12. SECOBARBITAWT/ACC/KHM/6
Page 44Table III: Convention 1971
1. AMOBARBITAI
2. ALLOBARBIAL
3. ALPRAZOLAM
4. AMFEPRAMONE
5. BARBITAL
6. BENZFETAMINE
7. BROMAZEPAM
8. BUPRENORPHINE
9. BUTALBITAL
10. BUTOBARAITAL
11. CATHINE
12. CAMAZEPAM
13. CHLORDIAZEPOXIDE
14. CLOBAZAM
15. CLONAZEPAM
16. CLORAZEPATE
17. CLOTIAZEPAM
18. CLOXAZOLAM
19. CYCLOBARBITAL
20. DELORAZEPAM
21. DIAZEPAM
22. ESTAZOLAM23. ETHCHLORVYNOL
24. ETHINAMATE
25. ETILAMFETAMINE
26. FENCAMFAMIN
27. FENPROPOREX
28. FLUDIAZEPAM
29. FLUNITRAZEPAM
30. FLURAZEPAM
31. GLUTETHIMIDE
32. HALAZEPAM
33. HALOXAZOLAM
34. KETAZOLAM
35. LEFETAMINE
36. LOFLAZEPATE ETHYL
37. LOPRAZOLAM
38. LORAZEPAM
39. LORMETAZEPAM
40. MAZINDOL
41. MEDAZEPAM
42. MEFENOREX
43. MEPROBAMATE
44. METHYLPHENOBARBITAL45. METHYPRYLON
46. MIDAZOLAM
47. NIMETAZEPAM
48. NITRAZEPAM
49. NORDAZEPAM
50. OXAZEPAM
51. OXAZOLAM
52. PEMOLINE
53. PENTAZOCINE
54. PENTOBARBITAL
55. PHENDIMETRAZINE
56. PHENOBARBITAL
57. PHENTERMINE
58. PINAZEPAM
59. PIPRADROL
60. PRAZEPAM
61. PYROVALERONE
62. SECBUTABARBITAL
63. TEMAZEPAM
64. TETRAZEPAM
65. TRIAZOLAM
66. VINYLBITALWT/ACC/KHM/6
Page 45ANNEX II
Cambodian Public Enterprises
Table 1
I. Public Enterprises with Economic Characteristics
No Name Controlling Ministry Transformation Date1Status Main Activities
1 Memut Rubber Plantation Ministry of Agriculture, Forestry and
Fisheries15 March 1999 Reduced activity Production and exportation of natural
rubber
2 Chup Rubber Plantation Ministry of Agriculture, Forestry and
Fisheries15 March 1999 Reduced activity Production and exportation of natural
rubber
3 Krek Rubber Plantation Ministry of Agriculture, Forestry and
Fisheries15 March 1999 Reduced activity Production and exportation of natural
rubber
4 Peam Chaing Rubber Plantation Ministry of Agriculture, Forestry and
Fisheries15 March 1999 Reduced activity Production and exportation of natural
rubber
5 Boeung Ket Rubber Plantation Ministry of Agriculture, Forestry and
Fisheries15 March 1999 Reduced activity Production and exportation of natural
rubber
6 Chamcar Andoung Rubber
PlantationMinistry of Agriculture, Forestry and
Fisheries15 March 1999 Reduced activity Production and exportation of natural
rubber
7 Snuol Rubber Plantation Ministry of Agriculture, Forestry and
Fisheries15 March 1999 Reduced activity Production and exportation of natural
rubber
8 Phnom Penh Water Supply Phnom Penh Municipality 09 Dec. 1999 Full activity Water supply
                                                     
1 Refers to the date on which the enterprise became financially autonomousWT/ACC/KHM/6
Page 46Table 2
II. State Owned Enterprises
No Name Controlling Ministry Transformation Date Status Main Activities
1 Agricultural Inputs Company Ministry of Agriculture, Forestry and
FisheriesImportation & sale of fertilizer,
insecticide and agricultural equipment.
2 Sihanouk Ville Port Ministry of Public Works and
Transport17 July 1998 Full activity Port services
3 Phnom Penh Port Ministry of Public Works and
Transport17 July 1998 Reduced activity Port services
4 Royal Railways Station Ministry of Public Works and
TransportFull activity Railway services
5 Kamsab Ministry of Public Works and
Transport30 Aug. 1999 Full activity Shipping agency
6 Green Trade Company Ministry of Commerce 23 Nov. 1998 Reduced activity Buying and Selling of paddy & rice
and maintenance of food reserve.
7 Electricite du Cambodge Co. Ministry of Industry, Mines and Energy Full activity Production and distribution of
Electricity.
8 Rural Development Bank Ministry of Economy and Finance Full activity Provide short-term credit for rural
development.WT/ACC/KHM/6
Page 47Table 3
III. Joint Ventures
No Name Controlling Ministry State Asset Share Status Main Activities
1 Colexim Ministry of Agriculture, Forestry and
Fisheries60% Reduced Activity Wood processing & forest concession
2 Casotim Ministry of Agriculture, Forestry and
Fisheries20% Idle Wood processing & forest concession
3 Royal Air Cambodge Council of Ministers 60% Active Airline company
4 Air Navigation Engineering
CorporationState Secretariat of Civil Aviation 30% Active Provisions of air navigation services
5 Camintel Ministry of Post & Telecom. 51% Reduced Activity Telephone company
6 Cambodian Pharmaceutical
EnterpriseMinistry of Health 45% Active Production of pharmaceuticals
Table 4
IV. Public Administrative Institutions
No Name Controlling Ministry Transformation Date Status Main Activity
1 Calmette Hospital Ministry of Health Active Hospital services
2 Institute de recherche du
caoutchouc du CambodgeMinistry of Agriculture, Forestry and
FisheriesActive Research and development of rubber
plantation
3 Agriculture Research &
Development InstituteMinistry of Agriculture, Forestry and
FisheriesActive Research and development of plants
other than rubber trees.
4 Royal University of Agriculture Ministry of Agriculture, Forestry and
FisheriesActive Formation of management for
agriculture sector.WT/ACC/KHM/6
Page 48Table 5
V. Activities of Some State-Owned Enterprises (exchange rate: $1 = 3,800 Riel)
Budget Projections 2000 (in Riel) Actual For Outcomes 2000 (in Riel)
No Name of EnterpriseIncome ExpenditureBefore-tax net
incomeIncome ExpenditureBefore-tax net
incomeRemarks
1 Memut Rubber
Plantation10,708,438,000.00 9,683,293,000.00 1,025,145,000.00 15,854,619,794.35 13,652,229,588.66 2,202,390,205.69
2 Chup Rubber Plantation 22,313,980,000.00 21,446,729,000.00 867, 251,000.00 30,633,836,926.00 27,578,537,020.00 3,055,299,906.00
3 Krek Rubber Plantation 6,950,200,000.00 6,224,317,196.00 725,882,804.00 8,920,080,463.50 8,082,496,188.58 837,584,274.92
4 Peam Chaing Rubber
Plantation5,105376,000.00 4,841,008,805.00 264,367,195.00 7,217,998,283.00 6,589,149,492.00 628,848,791.00
5 Boeung Ket Rubber
Plantation9,105,177,000.00 8,189,779,000.00 915,398,000.00 9,539,079,000.00 9,330,950,000.00 208,129,000.00
6 Snuol Rubber
Plantation5,308,488,000.00 4,863,666,000.00 444,822,000.00 6,769,436,591.00 6,380,967,038.30 388,496,552.70
7 Chamcar Andong
Rubber Plantation14,645,808,000.00 12,877,360,000.00 1,768,448,000.0 0 17,572,724,841.00 16,752,758,876.00 819,965,965.00
8 Agriculture Equipment
Enterprise445,155,027.31 355,006,134.70 90,148,892.61
9 Autonomous Sihanouk
Ville Port65,893,151,704.40 32,958,8 39,063.70 32,934,312,640.7
0
10 Autonomous Phnom
Penh Port5,642,092,846.50 4,746,175,211.52 895,917,634.98
11 Kamsab 5,863,866,803.20 1,888,706,951.35 3,975,159,851.85
12 Phnom Penh Water
Supply24,406,594,412.00 24,929,630,210.00 (523,035,798.00) 31, 984,210,390.00 28,472,476,095.00 3,511,734,295.00
13 Electricite du
Cambodge222,894,181,407.0
0229,179,613,840.0
0(6,285,432,433.0
0)190,609,448,532.0
3207,863,937,446.1
017,254,488,914.0
7
14 Green Trade Company 8,908,400,000.00 3,583,116,000.00 324,784,000.00 4,454,680,908.68 4,282,904,894.00 171,776,014.68
15 Rural Development
Bank2,128,575,930.00 2,070,711,783.00 57,864,147.00 1,361,393,333.00 1,762,444,273.00 401,050,940.00WT/ACC/KHM/6
Page 49ANNEX III
Identification of four-digit HS headings containing tariff lines with tariff rates of 35%
(Note: Not all eight-digit lines within the four-digit headings in this table carry rates of 35%.
For the eight-digit lines concerned, please see Cambodia's tariff.)
Chapter Description
2 Meat and edible meat offal
02.01 Meat of bovine animals, fresh or chilled.
02.02 Meat of bovine animals, frozen.
02.03 Meat of swine, fresh, chilled or frozen.
02.04 Meat of sheep or goats,  fresh, chilled or frozen.
02.05 Meat of horses, asses ,mules or hinnies, fresh, chilled or frozen
02.06 Edible offal of bovine animals, swine, sheep, goats, horses, asses,  mules  or hinnies, fresh, chilled or frozen.
02.07 Meat and edible offal, of the poultry of heading  No. 01.05, fresh, chilled or frozen.
02.08 Other meat and edible meat offal, fresh, chilled or frozen.
02.09 Pig fat , free of lean meat, and poultry fat , not rendered or other wise extracted , fresh,  chilled, frozen, salted, in brine, dried or smoked.
02.10  Meat and edible meat  offal, salted, in brine, dried or  smoked, edible flours and meals of meat or meat offal.
3 Fish and crustaceans, molluscs and other aquati c invertebrates
03.04 Fish fillets and other fish meat (whether or not   minced), fresh, chilled or frozen.
03.05 Fish, dried, salted or in brine; smoked fish, whether or not cooked before or during the smoking process; flours, meals an d pellets of fish, fit for human
consumption
4 Dairy produce; birds' eggs; natural honey; edible products of animal or igin, not elsewhere specified or included
04.02 Milk and cream, concentrated or contai ning added  sugar or other sweetening matter
04.03 Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk and cream, whether or not concen trated or containing added sugar or
other sweetening  matter or flavoured or  containing added fruit, nuts or cocoa.
04.04 Whey, whether or not concentrated or containing added sugar or other sweetening matter; products  consisting of natural mi lk constituents, whether or not
containing added sugar or other sweetening  matter, not elsewhere specified or included.
04.05 Butter and other fats and oils derived from milk ,dairy spreads.
04.06 Cheese and curd.
04.07 Birds' eggs, in shell, fresh, preserved or cooked.
04.08 Birds' eggs, not in shell, and egg yolks, fresh, dried, cooked by  steaming or by boiling in water, moulded, frozen or oth erwise  preserved, whether or not
containing added sugar or other   sweetening matter.
04.09 Natural honey.
04.10 Edible products of animal origin, not elsewhere   specified or included.
9 Coffee, tea, maté and spices
09.01 Coffee, whether or not roasted or decaffeinated; coffee  hu sks and skins; coffee substitutes containing coffee  in any pro portion.
11 Products of the milling industry; malt; starches; inulin; wheat gluten
11.01 Wheat or meslin flour.WT/ACC/KHM/6
Page 50Chapter Description
11.02 Cereal flours other than of wheat or meslin.
11.03 Cereal groats, meal and pellets.
11.05 Flour, meal, powder , flakes, granules and pellets of potatoes.
11.06 Flour , meal  and powder of the dried leguminous vegetables of  heading No. 07.13, of sago or of roots or tubers of headin g No. 07.14 or  of the  products of
Chapter 8.
11.08 Starches; inulin.
11.09 Wheat gluten, whether or not dried.
12 0il seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial and medicinal plants; straw and fodder
12.08 Flours and meals of oil seeds or oleaginous fruits, Other than those of mustard.
12.11 Plants and parts of plants (including seeds and fruits), of a kind  used primarily in perfumery, in pharmacy or for insect icidal,  fungicidal or similar purposes,
fresh or dried, whether or not cut, crushed or powdered.
13 Lac; gums, resins and other vegetable saps and extracts
13.01 Lac; natural gums, resins, gum-resins and oleoresins (for example balsams).
13.02 Vegetable saps and extracts; pectic substances, pectinates and  pectates; agar-agar and other mucilages and thickeners , w hether  or not modified, derived from
vegetable products.
16 Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates
16.01 Sausages and similar products, of meat, meat offal or  blood; food preparations based on these products.
16.02 Other prepared or preserved meat, meat offal or blood.
16.03 Extracts and juices of meat, fish or crust aceans, molluscs or other   aquatic invertebrates.
16.04 Prepared or preserved fish, caviar and caviar  substitutes prepared  from fish eggs.
16.05 Crustaceans, molluscs and other aquatic invertebrates, prepared  or preserved.
17 Sugars and sugar confectionery
17.02 Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups not containing  added  flavouring or colouring
matter; artificial honey, whether  or not mixed with  natural honey; caramel.
18 Cocoa and cocoa preparations
18.03 Cocoa paste, whether or not defatted.
18.04 Cocoa butter, fat and oil.
18.05 Cocoa powder, not containing added sugar or other  sweetening matter.
18.06 Chocolate and other food preparations containing cocoa.
19 Preparations of cereals, flour, sta rch or milk; pastry cooks' products
19.03 Tapioca and substitutes therefor prepared from starch, in th e form of flakes, grains, pearls, siftings or in similar forms .
19.04 Prepared foods obtained by the swelling or roasting of   cereals or cereal products (for example, corn flakes); cereals  ( other than maize (corn). ) , in grain form
or in the form of flakes  or other worked grains (except flour and meal), pre-cooked or  otherwise prepared, not elsewhere  spe cified  or included.
20 Preparations of vegetables, fruit, nuts or other parts of plants
20.01 Vegetables, fruit, nuts and other edible parts of plants,  prepared or  preserved by vinegar or acetic acid.
20.02 Tomatoes prepared or preserved otherwise than by vinegar or acetic acid.
20.03 Mushrooms and  truffles , prepared or preserved  otherwise than by  vinegar or acetic acid.
20.04 Other vegetables prepared or preserved otherwise  than by vinegar or acetic acid, frozen, other than products of heading N o. 20.06.
20.05 Other vegetables prepared or preserved otherwise  than by vinegar or acetic acid, not frozen, other than products of headi ng No. 20.06.WT/ACC/KHM/6
Page 51Chapter Description
20.06 Vegetables, fruit, nuts, fruit-peel and other parts of plants, preserved by sugar (drained, glacé or crystallised).
20.07 Jams, fruit jellies, marmalades, fruit or nut purée and fruit or nut pastes, being cooked preparations, whether or not con taining added sugar or other sweetening
matter.
20.08 Fruit, nuts and other edible parts of plants, otherwise  prepared or  preserved, whether or not containing added sugar or other sweetening matter or spirit, not
elsewhere specified or included.
20.09 Fruit juices (including grape must) and vegetable  juices, unfermented and not containing added spirit, whether or not con taining added sugar or other
sweetening matter.
21 Miscellaneous edible preparations
21.01 Extracts, essences and concentrates, of coffee, tea or maté and preparations   with a basis of these products or with a ba sis of coffee, tea or maté ;  roasted
chicory  and other roasted coffee substitutes, and extracts, essences and concentrates thereof.
21.02 Yeasts (active or inactive); other single-cell  micro-organi sms, dead (but not including vaccines of heading No. 30.02);pr epared baking powders.
21.03 Sauces and preparations therefor; mixed condiments and mi xed seasonings; mustard flour and meal and prepared mustard.
21.04 Soups and broths and preparations therefor ; homogenised composite  food preparations.
21.05 Ice cream and other edible ice, whether or not containing cocoa.
21.06 Food preparations not elsewhere specified or included.
22 Beverages, spirits and vinegar
22.01 Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other  sweetening  matter not  flavoured ice and snow.
22.02 Waters, including mineral waters and aerated  waters, containing added sugar or other sweetening matter or flavoured, and other non - alcoholic  beverages, not
including fruit or vegetable juices  of heading No. 20.09.
22.03 Beer made from malt
22.04 Wine of fresh grapes, including fortified wines;  grape must other  than that of heading No. 20.09.
22.05 Vermouth and other  wines  of fresh grapes flavoured  with  plants or aromatic substances.
22.06 Other fermented beverages (for example, cider, perry, mead);  mixtures of  fermented beverages and mixtures of fermented b everages and  non-alcoholic
beverages , not elsewhere specified   or included.
22.07 Undenatured ethyl alcohol of an alcoholic strength  by volume of 80 %  vol. or higher; ethyl alcohol  and other spirits, d enatured, of any strength.
22.08 Undenatured ethyl alcohol of an alcoholic strength  by volume of less  than 80 % vol.; spirits, liqueurs and other spiritu ous beverages.
23 Residues and waste from the food industries; prepared animal fodder
23.09 Preparations of a kind used in animal feeding.
24 Tobacco and manufactu red tobacco substitutes
24.02 Cigars, cheroots, cigarillos and cigarettes, of tobacco or  of tobacco substitutes.
24.03 Other manufactured tobacco and manufactured tobacco substitutes; "homogenised " or "reconstituted" tobacco; tobacco extrac ts and essences.
25 Salt; sulphur; earths and stone; pl astering materials, lime and cement.
25.01 Salt (including table salt and denatured salt) and pure sodium  chloride, whether or not in aqueous solution or containing  added anti-caking or free-flowing
agents; sea water.
25.19 Natural magnesium carbonate (magnesite); fused magnesia; dead-burned (sintered) magnesia,  whether or  not containing smal l quantities of  other oxides
added before sintering; other magnesium oxide, whether or not pure.
27 Mineral fuels, mineral oils and products of thei r distillation; bituminous substances; mineral waxes
27.10 Petroleum oils and oils obtained from bituminous minerals, ot her than  crude; preparations not elsewhere specified or incl uded, containing by  weight 70 % or
more of petroleum oils or of oils obtained from bituminous minerals, these oils being the  basic constituents of the preparatio ns.WT/ACC/KHM/6
Page 52Chapter Description
27.12  Petroleum jelly; paraffin wax, micro-crystalline petroleum wax, slack wax ,  ozokerite, lignite wax, peat wax, other mine ral waxes, and similar products
obtained by synthesis or by other processes, whether or not coloured.
29 Organic chemicals
29.05 Acyclic alcohols and their halogenated, sulphonated, nitrated or nitrosated derivatives.
29.21 Amine-function compounds.
29.22 Oxygen-function amino-compounds.
29.32 Heterocyclic compounds with oxygen hetero-atom(s) only.
29.33 Heterocyclic compounds with nitrogen hetero-atom(s) only.
29.34 Nucleic acids and their salts; other heterocyclic compounds.
29.39 Vegetable alkaloids, natural or reproduced by synthesis, and their  salts, ethers, esters and other derivatives.
32 Tanning or dyeing extracts; tannins and their derivatives; dyes , pigments and other colouring matter; paints and varnishes; p utty and other mastics;
inks
32.08 Paints and varnishes (including enamels and  lacquers) based on synthetic polymers or chemically modified natural polymers , dispersed or dissolved in a non-
aqueous medium; solutions as defined in Note 4 to this Chapter.
32.09 Paints and varnishes (including enamels and  lacquers) based on synthetic polymers or  chemically modified natural polymer s,   dispersed  or dissolved in an
aqueous medium.
32.10. Other paints and varnishes (including enamels, lacquers and  distempers); prepared water pigments of a kind used for fini shing leather.
32.11 Prepared driers.
32.12 Pigments (including metallic powders and flakes)  dispersed in non-aqueous media, in liquid or paste form, of a kind used in  the  manufacture of  paints
(including enamels); stamping foils; dyes and other colouring matter put up in forms or  packings for retail sale.
33 Essential oils and resinoids; perfum ery, cosmetic or toilet preparations
33.01 Essential oils (terpeneless or not), including concretes and absolutes; resinoids; extracted  oleoresins ; concentrates of  essential oils in fats,  in fixed oils, or in
waxes or the like, obtained  by enfleurage or maceration; terpen ic by-products  of the deterpenation of essential oils; aqueous  distillates and aqueous solutions
of essential oils.
33.03 Perfumes and toilet waters.
33.04 Beauty or make-up preparations and preparations for the care of the skin (other than medicaments), including sunscreen or sun tan preparations; manicure or
pedicure preparations.
33.07 Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, depilatories and other perfumery, cosmetic or toilet  preparations, not
elsewhere specified or included; prepared room deodorisers, whether or not perfumed or having disinfectant properties.
34 Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polish ing or scouring
preparations, candies and similar articles, modelling pastes, and "dental waxes" and dental preparations with a basis of plaste r
34.04 Artificial waxes and prepared waxes.
34.05 Polishes and creams, for footwear, furniture, floors, coachwork, glass or metal , scouring pastes and powders and similar preparations (whether or not in the
form of paper, wadding, felt, nonwovens, cellular plastics or cellular rubber, impregnated, coated or covered with such prepara tions),excluding waxes of
heading No. 34.04.
34.06 Candles, tapers and the like.
34.07 Modelling pastes, including those put up for children's  amusement; preparations known as "dental wax" or as "dental   imp ression compounds", put up in sets,
in packings for  retail sale or in plates,  horseshoe shapes, sticks or similar  forms; other  preparations for use in dentistr y, with a basis of plaster (of  calcined
gypsum or calcium sulphate).WT/ACC/KHM/6
Page 53Chapter Description
35 Albuminoidal substances; modified starches; glues; enzymes
35.01 Casein, caseinates and other casein derivatives;  casein glues.
35.02 Albumins (including concentrates of  two or more whey proteins, containing by weight more than 80% whey proteins, calculat ed on the dray matter),
albuminates and other albumin derivatives.
35.03 Gelatin (including gelatin in rectangu lar (including square) sheets, whether or not surface-worked or coloured) and gelati n derivatives;  isinglass; other glues of
animal origin, excluding casein glues of  heading No 35.01.
35.04 Peptones and their derivatives; other protein substances and  their derivatives, not elsewhere specified or included; hide  powder, whether or not chromed.
35.05 Dextrins and other modified starches (for example, pregelatinised or esterified starches); glues based on starches, or on dextrins  or other modified starches.
35.07 Enzymes; prepared enzymes not  elsewhere specified or included.
36
36.01 Propellant powders.
36.04 Fireworks, signalling flares, rain rockets, fog signals and other  pyrotechnic articles.
36.05 Matches, other than pyrotechnic articles of heading No. 36.04.
36.06 Ferro-cerium and other pyrophoric  alloys in all forms; artic les of combustible materials as specified in Note 2 to this C hapter.
38 Miscellaneous chemical products
38.14 Organic composite solvents and  thinners, not elsewhere specified or included; prepared paint or varnish removers.
38.19 Hydraulic brake fluids and other prepared liquids for hydraulic transmission, not containing or containing less than 70 % by weight of petroleum oils or oils
obtained from bituminous minerals.
38.20 Anti-freezing preparations and prepared de-icing fluids.
39 Plastics and articles thereof
39.26 Other articles of plastics and articles of other materials of headings   Nos. 39.01 to 39.14.
40 Rubber and articles thereof
40.10 Conveyor or transmission belts or belting, of vulcanised rubber.
40.11 New pneumatic tyres, of rubber.
40.12 Retreaded or used pneumatic tyres of  rubber; solid or cush ion tyres, interchangeable tyre treads and tyre flaps, of rubbe r.
40.13 Inner tubes, of rubber.
40.15 Articles of apparel and clothing accessories (including gloves),  for all purposes, of vulcanised rubber other than hard ru bber.
40.16 Other articles of vulcanised rubber  other than hard rubber.
40.17 Hard rubber (for example, ebonite) in all forms, including waste and scrap; articles of hard rubber.
41 Raw hides and skins (other than furskins) and leather
41.04 Leather of bovine or equine animals,  without hair on, other than  leather of  heading No. 41.08 or 41.09.
41.05 Sheep or lamb skin leather, without  wool on, other than leather of  heading  No. 41.08 or 41.09.
41.06 Goat or kid skin leather, without hair on, other than leather of  heading No. 41.08 or 41.09.
41.07 Leather of other animals,  without hair on  other than leather of heading  No. 41.08 or 41.09.
41.08 Chamois (including combination chamois) leather.
41.09 Patent leather and patent laminated leather; metallised leather.
41.10 Parings and other waste of leather or of composition leathe r, not suitable for the manufacture of leather articles; leathe r dust, powder  and flour.
41.11 Composition leather with a basis of  leather or leather fibre, in slabs, sheets  or strip, whether or not in rolls.WT/ACC/KHM/6
Page 54Chapter Description
42 Articles of leather; saddlery and harne ss; travel goods, handbags and similar contain ers; articles of anim al gut (o ther than silk-worm gut)
42.01 Saddlery and harness for any animal (including traces, leads, knee pads, muzzles, saddle cloths, saddle bags, dog coats an d the like), of any material.
42.02 Trunks, suit-cases, vanity-cases, executive-cases, brief-cases,  school satchels, spectacle cases, binocular cases, camera  cases,  musical instrument cases, gun
cases, holsters and similar containers; travelling  bags, toilet bags, rucksacks, handbags,  shopping-bags, wallets, purses, ma p  cases, cigarette-cases, tobacco-
pouches, tool bags, sports bags, bottle cases , jewellery boxes,  powder-boxes, cutlery cases and similar containers, of leather  or of composition leather, of
sheeting  of plastics, of textile materials, of vulcanised fibre or of paperboard, or wholly or mainly covered with  such mater ials or  with paper.
42.03 Articles of apparel and clothing  accessories, of leather or of  composition  leather.
42.04 Articles of leather or of composition leather  of a kind used  in machinery or mechanical  appliances or for other technica l uses.
42.05 Other articles of leather or of   composition leather.
42.06 Articles of gut (other than silk-worm gut), of goldbeater's skin, of bladders or of tendons.
43 Furskins and artificial fur, manufactures thereof
43.02 Tanned or dressed furskins (including heads, tails, paws an d other   pieces or cuttings), unassembled, or assembled (witho ut the addition  of other materials)
other than those  of heading No. 43.03.
43.03 Articles of apparel, clothing accessories and other articles of   furskin.
43.04 Artificial fur and articles thereof.
44 Wood and articles of wood, wood charcoal
44.04 Hoopwood; split poles; piles, pickets and stakes of wood, pointed  but not sawn lengthwise; wooden sticks, roughly trimmed  but  not turned, bent or otherwise
worked, suitable for the manufacture of walking-sticks, umbrellas, tool handles or the like; chipwood and the like.
44.07 Wood sawn or chipped lengthwise, sliced or peeled, whether or not planed, sanded or finger-jointed, of a thickness exceedi ng 6 mm.
44.08 Veneer sheets and sheets for plywood (whether or not spliced) and  other wood sawn lengthwise, sliced or peeled, whether o r not planed,  sanded or finger-
jointed, of a thickness not exceeding 6 mm.
44.09 Wood (including strips and friezes for parquet flooring, not assembled) continuously shaped (tongued, grooved, rebated, ch amfered,  V-jointed, beaded,
moulded, rounded or the like) along any of its edges or faces, whether or not planed, sanded or finger-jointed.
44.10 Particle board and similar board of wood or other ligneous materials,  whether or not agglomerated with resins or other or ganic binding substances.
44.11 Fibreboard of wood or other ligneous materials, whether or not  bonded with resins or other organic substances.
44.12 Plywood, veneered panels and similar laminated wood.
44.13 Densified wood, in blocks, plates, strips or profile shapes.
44.14 Wooden frames for paintings, photographs, mirrors or similar  objects.
44.15 Packing cases, boxes, crates, drums and similar packings, of  wood; cable-drums of wood; pallets, box pallets and other lo ad boards, of wood; pallet collars of
wood.
44.16 Casks, barrels, vats, tubs and other coopers' products and parts thereof, of wood, including staves.
44.17 Tools, tool bodies, tool handles, broom or brush bodies and handles,  of wood; boot or shoe lasts and trees, of wood.
44.18 Builders' joinery and carpentry of wood, including cellular wood panels, assembled parquet panels, shingles and shakes.
44.19 Tableware and kitchenware, of wood.
44.20 Wood marquetry and inlaid wood; caskets and cases for jewellery or cutlery, and similar articles, of wood; statuettes and other ornaments  of wood; wooden
articles of furniture not falling in Chapter 94.
44.21 Other articles of wood.WT/ACC/KHM/6
Page 55Chapter Description
45 Cork and articles of cork
45.02 Natural cork, debarked or roughly squared, or in rectangular (including square) blocks, plates, sheets or strip, (Includin g sharp-edged  blanks for corks or
stoppers).
45.03 Articles of natural cork.
45.04 Agglomerated cork (with or without a binding substance) and articles  of agglomerated cork.
46 Manufactures of straw, of esparto or of oth er plaiting materials; basketware and wickerwork
46.01 Plaits and similar products of plaiting materials,  whether or not assembled into strips; plaiting materials,  plaits and similar products of plaiting materials,
bound together in parallel strands or woven,  in sheet form,  whether or not being finished articles (for example, mats, mattin g, screens).
46.02 Basketwork, wickerwork and other articles, made directly to shape from plaiting materials or made up from goods of heading  No. 46.01; articles of loofah.
47 Pulp of wood or of ot her fibrous cellulosic materi al ; recovered (waste and s crap) paper or paperboard
47.07 Recovered (waste and scrap) paper or paperboard.
56 Wadding, felt and nonwovens; special yarns; twine,  cordage, ropes and cabl es and articles thereof
56.01 Wadding of textile materials and articles thereof; textile fibres, not exceeding 5 mm in length (flock), textile dust and mill neps.
56.02 Felt, whether or not impregnated,  coated, covered or laminated.
56.03 Nonwovens, whether or not impregnated, coated, covered  or laminated.
56.04 Rubber thread and cord, textile covered; textile yarn, and strip and the like of heading No. 54.04 or 54.05, impregnated, coated, covered or sheathed with
rubber or plastics.
56.05 Metalised yarn, whether or not gimped, being textile yarn, or strip  or the like of heading No. 54.04 or 54.05, combined w ith metal in the form of thread, strip
or powder or covered with metal.
56.06 Gimped yarn, and strip and the like of heading No. 54.04 or 54.05, gimped (other than those of heading No. 56.05 and gimpe d horse-hair yarn); chenille yarn
(including flock chenille yarn); loop wale-yarn.
56.07 Twine, cordage, ropes and cables, whether or not plaited or braided and whether or not impregnated,  coated, covered or sh eathed with  rubber or plastics.
56.08 Knotted netting of twine, cordage or rope; made up fishing nets and other made up nets, of textile materials.
56.09 Articles of yarn, strip or the like of heading No. 54.04 or 54.05, twine, cordage, rope or cables, not elsewhere specified  or included.
57
57.01 Carpets and other textile floor coverings, knotted, whether or not made up.
57.02 Carpets and other textile floor coverings, woven, not tufted or flocked, whether or not made up, including "Kelem", "Schum acks", Karamanie and similar
hand-woven rugs.
57.03 Carpets and other textile floor coverings, tufted, whether or not made up.
57.04 Carpets and other textile floor coverings, of felt, not tufted or  flocked, whether or not made up.
57.05 Other carpets and other textile floor coverings, whether or not  made up.
58 Special woven fabrics; tufted textile fabric s; lace; tapestries; trimmings; embroidery
58.01 Woven pile fabrics and chenille fabrics, other than fabrics of   heading No. 58.02 or 58.06.
58.02 Terry towelling and similar woven terry fabrics, other than narrow fabrics of heading No. 58.06; tufted textile fabrics, o ther than products  of heading No.
57.03.
58.03 Gauze, other than narrow fabrics of heading No. 58.06.
58.04 Tufles and other net fabrics, not including woven, knitted or crocheted fabrics; lace in the piece, in strips or in motifs  other than fabrics of   heading No 60.02
58.05 Hand-woven tapestries of the type Gobelins, Flanders, Aubusson,  Beauvais and the like, and needle-worked tapestries (for example, petit point, cross stitch),
whether or not made upWT/ACC/KHM/6
Page 56Chapter Description
58.06 Narrow woven fabrics, other than goods of heading No. 58.07; narrow fabrics consisting of warp without weft assembled by m eans of an adhesive (boldues).
58.07 Labels, badges and similar articles of textile materials, in the piece, in strips or cut to shape or size, not embroidered .
58.08 Braids in the piece; ornamental trimmings in the piece, without embroidery, other than knitted or crocheted; tassels, pomp ons and  similar articles.
58.09 Woven fabrics of metal thread and  woven fabrics of metallised yarn of heading No. 56.05, of a kind used in apparel, as fu rnishing fabrics or for similar
purposes, not   elsewhere specified or included.
58.10 Embroidery in the piece, in strips or in motifs.
58.11 Quilted textile products in the piece, composed of one or more   layers of textile materials assembled with padding by sti tching or  otherwise, other than
embroidery of heading No. 58.10.
59 Impregnated, coated, covered or lamina ted textile fabrics; textile articles of a kind suitable for industrial use
59.06 Rubberised textile fabrics, other than those of heading No. 59.02.
59.07 Textile fabrics otherwise impregnated, coated or covered; painted canvas being theatrical scenery, studio back-cloths or t he like.
59.08 Textile wicks, woven, plaited or knitted, for lamps, stoves, lighters,   candles or the like; incandescent gas mantles and  tubular knitted   gas mantle fabric
therefor, whether or not impregnated.
59.09 Textile hosepiping and similar textile tubing, with or without
59.10 Transmission or conveyor belts or belting, of textile material, whether or not impregnated, coated, covered or laminated w ith plastics, or   reinforced  with
metal or other material.
59.11 Textile products and articles, for technical uses, specified in Note 7   to this Chapter.
60 Knitted or cro cheted goods
60.01  Pile fabrics, including "long pile" fabrics and terry fabrics, knitted or  crocheted.
61 Articles of apparel and clothing accessories, knitted or crocheted goods
61.01 Men's or boys' overcoats, car-coats ,capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and simil ar articles, knitted or crocheted, other
than those of heading No. 61.04.
61.02 Women's or girls' overcoats, car -coats, capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and s imilar articles, knitted or crocheted,
other than those of heading No 61.04.
61.03 Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts  (other than swim wear),   knitted or crocheted.
61.04 Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, b reeches and shorts  (other than swimwear),
knitted or  crocheted.
61.05 Men's or boys' shirts, knitted or crocheted.
61.06 Women's or girls' blouses, shirts and shirt-blouses, knitted or  crocheted.
61.07 Men's or boys' underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles, knitted or croche ted.
61.08 Women's or girls' slips, petticoats, briefs, panties, nightdr esses, pyjamas, negligées, bath robes, dressing gowns and simi lar articles, knitted   or crocheted.
61.09 T-shirts, singlets and other vests, knitted or crocheted.
61.10 Jerseys, pullovers, cardigans, waist-coats and similar articles,  knitted or crocheted.
61.13 Garments, made up of knitted or crocheted fabrics of heading  No. 59.03, 59.06 or 59.07.
61.14 Other garments, knitted or crocheted.
61.15 Panty hose, tights, stockings, socks and other hosiery, including stockings for varicose veins and footwear without applie d soles,   knitted or crocheted.
61.16 Gloves, mittens and mitts, knitted or crocheted.
61.17 Other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessorie s.WT/ACC/KHM/6
Page 57Chapter Description
62 Articles of apparel and clothing  accessories, not knitted or crocheted
62.01 Men's or boys' overcoats, car-coats, capes, cloaks, anoraks (i ncluding ski-jackets), wind-cheaters, wind jackets and simil ar articles, other  than those of heading
No. 62.03.
62.02 Women's or girls' overcoats, car-coats, capes, cloaks, anoraks (including ski-jackets), wind-cheaters, wind-jackets and si milar articles, other than those of
heading No. 62.04.
62.03 Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimw ear).
62.04 Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and  brace overalls, breeches and shorts (other than swimwear).
62.05 Men's or boys' shirts.
62.06 Women's or girls' blouses, shirts and shirt-blouses.
62.07 Men's or boys' singlets and other vests, underpants, briefs, night shirts, pyjamas, bathrobes, dressing  gowns and similar  articles.
62.08 Women's or girls' singlets and other vests, slips, petticoats , briefs, panties, nightdresses, pyjamas, négligés, bathrobes , dressing   gowns and similar articles.
62.10 Garments, made up of fabrics of heading No. 56.02, 56.03, 59.03, 59.06 or 59.07.
62.12 Brassières, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted o r crocheted.
62.13 Handkerchiefs.
62.14 Shawls, scarves, mufflers,  mantillas, veils and the like.
62.15 Ties, bow ties and cravats.
62.16 Gloves, mittens and mitts.
62.17 Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading No. 62.12.
63 Other made up textile articles; sets; worn  clothing and worn textile articles; rags
63.01 Blankets and travelling rugs.
63.02 Bed linen, table linen, toilet linen and kitchen linen.
63.05 Sacks and bags, of a kind used for the packing of goods.
63.06 Tarpaulins, awnings and sun blinds; tents; sails for boats, sailboards or  landcraft; camping goods.
63.07 Other made up articles, including dress patterns.
63.08 Sets consisting of woven fabric and yarn, whether or not with accessories, for making up into rugs, tapestries, embroidere d table-cloths or serviettes, or similar
textile articles,  put up   in packings  for retail sale.
64 Footwear, gaiters and the like; parts of such articles
64.01 Waterproof footwear with outer soles and uppers of rubber or of  plastics, the uppers of which are neither fixed to the so le nor assembled by stitching, riveting,
nailing, screwing, plugging or similar processes.
64.02 Other footwear with outer soles and uppers of rubber or plastics.
64.03 Footwear with outer soles of rubber, plastics, leather or  composition leather and uppers of leather.
64.04 Footwear with outer soles of rubber, plastics, leather or  composition leather and uppers of textile materials.
65 Headgear and parts thereof
65.01 Hat-forms, hat bodies and hoods of felt, neither blocked to  shape nor with  made brims; plateaux and manchons  (including  slit  manchons), of felt.
65.02 Hat-shapes, plaited or made by assembling strips of any material, neither blocked to shape, nor with made brims, nor lined , nor trimmed.
65.03 Felt hats and other felt headgear, made from the hat bodies, hoods or plateaux of heading No. 65.01, whether or not lined or trimmed.
65.04 Hats and other headgear, plaited or made by assembling strips of any  material, whether or not lined or trimmed.
65.05 Hats and other headgear, knitted or crocheted, or made up from lace,  felt or other textile fabric, in the piece (but not in strips), whether or  not lined or
trimmed; hair-nets of any material, whether or not lined  or trimmed.WT/ACC/KHM/6
Page 58Chapter Description
65.06 Other headgear, whether or not lined or trimmed.
65.07 Head-bands, linings, covers, hat foundations, hat frames, peaks and chinstraps, for headgear.
66 Umbrellas, sun umbrellas, walking-sticks, sea t-sticks, whips, riding -crops and parts thereof
66.02 Walking-sticks, seat-sticks, whips, riding-crops and the like.
66.03 Parts, trimmings and accessories of articles of heading No. 66.01 or  66.02.
67 Prepared feathers and down and articl es made of feathers or of down; artificial flowers; articles of human hair
67.01 Skins and other parts of birds with their feathers or down, feathers,  parts of feathers, down and articles thereof (other  than goods falling  within heading No.
05.05 and worked quills and scapes).
67.02 Artificial flowers, foliage and fruit and parts thereo f; articles made of artificial flowers, foliage or fruit.
67.03 Human hair, dressed, thinned, bleached or otherwise worked; wool or other animal hair or other textile materials, prepared   for use in making wigs or the like.
67.04 Wigs, false beards, eyebrows and eyelashes, switches and the like, of human or animal hair or of textile materials; articl es of human  hair not elsewhere
specified or included.
68 Articles of stone, plaster, cement,  asbestos, mica or similar materials
68.05 Natural or artificial abrasive powder or grain, on a base of textile  material,  of paper, of paperboard or of other mater ials,  whether or not cut to shape or sewn
or otherwise made up.
68.12 Fabricated asbestos fibres; mixtures with a basis of asbestos   or with a basis of asbestos and magnesium carbonate; artic les of   such mixtures or of asbestos
(for example, thread, woven fabric, clothing, headgear, footwear, gaskets), whether or not reinforced, other than goods of head ing No. 68.11 or 68.13.
68.13 Friction material and articles thereof (for example, sheets, rolls,   strips, segments, discs, washers, pads), not mounted , for brakes, for clutches or the like, with
a basis of asbestos, of other mineral substances or of cellulose, whether or not combined with textile  or other materials.
68.15 Articles of stone or of other mineral substances (including carbon fibres, articles of carbon fibres or articles of peat),  not elsewhere specified or  included.
70 Glass and glassware
70.06 Glass of heading No. 70.03, 70.04 or 70.05, bent, edge-worked, engraved , drilled, enamelled or otherwise worked, but not framed or fitted with other
materials.
70.07 Safety glass, consisting of toughened (tempered) or laminated glass.
70.09 Glass mirrors, whether or not framed, including rear-view mirrors.
70.14 Signalling glassware and optical elements of glass  (o ther than those of heading No. 70.15), not optically worked.
70.15 Clock or watch glasses and similar glasses, glasses for non-corrective or  corrective spectacles, curved, bent, hollowed o r the like, not optically worked;
hollow glass spheres and their segments,   for the manufacture of such glasses.
70.18 Glass beads, imitation pearls, imitation precious or semi-pr ecious  stones and similar glass smallwares, and articles ther eof other than  imitation   jewellery;
glass eyes other than prosthetic articles; statuettes and other ornaments of lamp-worked glass, other than imitation jewellery;  glass microspheres not exceeding
1 mm in diameter.
70.19 Glass fibres (including glass wool) and articles thereof   (for example, yarn, woven fabrics).
70.20 Other articles of glass.
71 Natural or cultured pearls, p recious or semi-precious stones, p recious metals, metals clad with  precious metal, and articles thereof; imitation
jewellery; coin
71.01 Pearls, natural or cultured, whether or not worked or graded but not strung, mounted or set;  pearls, natural or cultured,  temporarily   strung for convenience of
transport.
71.02 Diamonds, whether or not worked, but not mounted or set.
71.03 Precious stones (other than diamonds) and semi-precious stones, whether or not worked or graded but not strung, mounted or  set; ungraded precious stones
(other than diamonds)  and semi-precious stones,  temporarily  strung for convenience of transport.WT/ACC/KHM/6
Page 59Chapter Description
71.04  Synthetic or reconstructed precious or semi-precious stones, whether  or not worked or graded but not strung, mounted or set; ungraded  synthetic or
reconstructed precious or semi-precious stones, temporarily strung for convenience of transport.
71.05 Dust and powder of natural or synthetic precious or semi-precious stones.
71.07 Base metals clad with silver, not further  worked than  semi-manufactured.
71.09 Base metals or silver, clad with gold, not further worked than  semi-manufactured.
71.10 Platinum, unwrought or in semi-manufactured forms,  or in powder form.
71.11 Base metals, silver or gold, clad with platinum, not further worked than semi-manufactured.
71.12 Waste and scrap of precious metal or of metal clad with precious metal, other waste and scrap containing precious metal or  precious metal compounds, of a
kind used principally for the recovery of precious metal.
71.13 Articles of jewellery and parts thereof, of precious metal or  of metal  clad with precious metal.
71.14 Articles of goldsmiths' or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal.
71.15 Other articles of precious metal or of metal clad with precious metal.
71.16 Articles of natural or cultured pearls, precious or semi-precious  stones (natural, synthetic or reconstructed).
71.17 Imitation jewellery.
73 Articles of iron or steel
73.15 Chain and parts thereof, of iron or steel.
73.17 Nails, tacks, drawing pins, corrugated nails, staples(other than those of  heading No. 83.05) and similar articles, of iro n or steel, whether or not with beads of
other material, but excluding such articles  with heads of copper.
73.18 Washers (including spring washers) and similar articles, of iron or   steel.
73.20 Springs and leaves for springs, of iron or steel.
73.23 Table, kitchen or other household articles and parts thereof, of iron or steel; iron or steel wool; pot scourers and scour ing or polishing pads,  gloves and the
like, of iron or steel.
74 Copper and articles thereof
74.14 Cloth (including endless bands), grill and netting, of copper wire; expanded metal, of copper.
74.15 Nails, tacks, drawing pins, staples (other than those of heading  No. 83.05)and similar articles, of copper or of iron or steel with  heads of copper; screws,
bolts, nuts, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar   articles, of copper
74.16 Copper springs.
74.17 Cooking or heating apparatus of a kind  used for domestic purposes, non-electrical , and parts thereof, of copper.
74.18 Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, glov es  and the like, of copper; sanitary
ware and parts thereof, of copper.
74.19 Other articles of copper
75 Nickel and articles thereof
75.06 Nickel plates, sheets, strip and foil.
75.07 Nickel tubes, pipes and tube or pipe  fittings (for example, couplings, elbows, sleeves).
75.08 Other articles of nickel.
76 Aluminium and articles thereof
76.11 Aluminium reservoirs, tanks, vats and similar containers, for any material (other than compressed or liquified gas), of a capacity exceeding 300 l, whether or
not lined or heat-insulated, but not fitted with mechanical or thermal equipmentWT/ACC/KHM/6
Page 60Chapter Description
76.12 Aluminium casks, drums, cans, boxes and similar containers (including rigid or collapsible tubular containers), for any ma terial (other than compressed or
liquefied gas), of a capacity not exceeding 300 l, whether or not lined or heat-insulated, but not fitted with mechanical or th ermal equipment.
78 Lead and articles thereof
78.06 Other articles of lead.
79 Zinc and articles thereof
79.07 Other articles of zinc.
80 Tin and articles thereof
80.07 Other articles of tin.
83 Miscellaneous articles of base metal
83.06 Bells, gongs and the like, non-electric, of base metal; statuettes, and other ornaments, of base metal; photograph, pictur e or similar frames, of base metal;
mirrors of base metal.
83.07 Flexible tubing of base metal, with or without fittings.
83.08 Clasps, frames with clasps, buckles, buckle-clasps, hooks, eyes, eyelets and the like, of base metal, of a kind used for c lothing, footwear, awnings, handbags,
travel goods or other made up articles; tubular or bifurcated rivets, of base metal; beads and spangles, of base metal.
83.10 Sign-plates, name-plates, address-plates and similar plates, numbers, letters and other symbols, of base metal, excluding those of heading No. 94.05.
84 Nuclear reactors, boilers, machinery a nd mechanical applia nces; parts thereof
84.07 Spark-ignition reciprocating or rotary internal combustion piston engines.
84.08 Compression-ignition internal combustion piston engines  (diesel or semi-diesel engines)
84.22 Dish washing machines; machinery for cleaning or drying bottles or other  containers; machinery for filling, closing, seal ing, or labelling bottles, cans,  boxes,
bags or other containers; machinery bottles, jars, tubes for capsuling  and similar containers; other packing or wrapping machi nery (including  heat-shrink
wrapping machinery); machinery for aerating beverages.
84.33 Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting o r grading  eggs, fruit or other
agricultural produce, other than machinery of heading No. 84.37.
85 Electrical machinery and equipment and parts thereof; sound record ers and reproducers, television image and sound recorders a nd reproducers,
and parts and accessori es of such articles
85.04 Electrical transformers, static converters  (for  example rectifiers)  and inductors.
85.05 Electro-magnets; permanent magnets and articles intended to become  permanent magnets after magnetisation;
Electro-magnetic or permanent  magnet chucks, clamps and similar holding devices; electro-magnetic couplings, clutches  and bra kes; electro-magnetic
lifting heads.
85.06 Primary cells and primary batteries.
85.07 Electric accumulators, including separators theref or, whether or not  rectangular (including square).
85.08 Electro-mechanical tools for working in th e hand, with self-contained  electric motor.
85.09 Electro-mechanical domestic appliances , with self-contained electric motors.
85.10 Shavers , hair clippers and hair-removing appliances, with self-contained  electric motor
85.11 Electrical ignition or starting equipment of a kind used for spark-ignition  or compression-ignition  internal combustion engines  (for example, ignition
magnetos, magneto-dynamos ignition coils, sparking plugs and glow plugs, starter motors); generators (for example, dynamos, alt ernators) and cut-outs  of a
kind used in  conjunction with such engines.
85.12 Electrical lighting or signalling equipment (excluding articles  of heading No 85. 39), windscreen wipers,  defrosters and  demisters, of a kind   used for cycles
or motor vehicles.WT/ACC/KHM/6
Page 61Chapter Description
85.15 Electric (including electrically heated gas), laser or other lights or photon beam, ultrasonic, electron beam, magnetic pu lse or plasma arc soldering, brazing or
welding machines and apparatus, whether or not capable of cutting; electric machines and apparatus for hot spraying of metals  or cermets
85.16 Electric instantaneous or storage water heaters and immersio n heaters; electric space heating apparatus and soil heating a pparatus; electro-thermic  hair-
dressing apparatus (for example, hair dryers, hair-curlers, curling ton heaters) and hand dryers; electric smoothing irons; oth er electro-thermic  appliances of a
kind used for domestic purposes; electric heating resistors,  other than those of heading no.85.45.
85.18 Microphones and stands therefor; loudspeakers, whether or not mounted in their enclosures; headphones, earphones and combi ned microphone/speaker sets;
audio frequency electric amplifiers; electric sound amplifier sets.
85.31 Electric sound or visual signalling apparatus( for example bells, sirens, indicator  panels, burglar or fire alarms) other  than those of heading  No. 85.12   or
85. 30 .
85.32 Electrical capacitors, fixed, va riable or adjustable (pre-set).
85.33 Electrical resistors (including rheostats and potentiometers), other than  heating  resistors.
85.39 Electric filament or discharge lamps, including sealed beam lamp units and ultra-violet or infra-red lamps; arc-lamps.
85.40 Thermionic, cold cathode or photo-cathode valves and tubes (for example, vacuum or vapour or gas filled valves and tubes, mercury  arc rectifying valves and
tubes, cathode-ray tubes, television camera tubes).
85.41 Diodes, transistors and similar semi-conductor devices; photosensitive semi-conductor devices, including photovoltaic cell s whether or not assembled in
modules or made up into panels; light emitting diodes; mounted piezo-electric crystals.
85.44 Insulated (including enamelled or anodised)wire, cable (including co-axial cable) and other insulated electric conductors,  whether or not fitted with
connectors; optical fibre cables, made up of individually sheat hed fibres, whether or not assembled with electric conductors or   fitted with connectors.
85.45 Carbon electrodes, carbon brushes, lamp carbons, battery carbons and other articles of graphite or other carbon, with or w ithout metal, a kind used for
electrical purposes.
87 Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof
87.03 Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading No. 87. 02), including station wagons and
racing cars.
87.06 Chassis fitted with engines, for the motor vehicles of headings Nos. 87.01   to 87. 05.
87.07 Bodies (including cabs), for the motor vehicles of headings Nos. 87.01 to 87.05.
87.08 Parts and accessories of the motor vehi cles of headings nos. 87.01 to 87.05.
89 Ships, boats and floating structures
89.03 Yachts and other vessels for pleasure or sports; rowing boats and canoes
90 Optical, photographic, cinemat ographic, measuring, checking, p recision, medical or surgical in struments and apparatus; parts and accessories
thereof
90.01 Optical fibres and optical fibre bundles; optical fibre cables other than those  of heading No.85.44; sheets and  plates o f polarising material; lenses  (including
contact lenses), prisms, mirrors and other optical  elements ,of any  material, unmounted, other than such elements of glass no t optically worked.
90.02 Lenses, prisms, mirrors and other optical elements, of any material,  mounted, being parts of or fitting for instruments o r apparatus,  other than such elements
of glass not optically  worked.
90.03 Frames and mountings for spectacles, goggles or the like, and parts thereof.
90.04 Spectacles, goggles and the like, corrective, protective or others
90.05 Binoculars, monoculars, other optical telescopes, and mountings therefor; other astronomical instruments and mountings the refor, but not including
instruments for radio-astronomy.
90.06  Photographic (other than cinematographic) cameras; photographic flashlight apparatus and flashbulbs other than discharge lamps of heading No. 85.39.WT/ACC/KHM/6
Page 62Chapter Description
90.13 Liquid crystal devices, not constituting articles provided for more specifically  in other heading, lasers, other than las er diodes; other  optical appliances and
instruments, not specified or included elsewhere in this chapter.
90.14 Direction finding compasses; other navigational instruments and appliances.
90.15 Surveying (including photog rammetrical surveying) hydrographic oceanograph ic, hydrological, meteor ological or geophysical instruments and appliances,
excluding compasses, rangefinders.
90.16 Balances of a sensitivity of 5 cg or better, with or without weights.
93 Arms and ammunition, pa rts and accessories thereof
93.02 Revolvers and pistols, other than those of heading No. 93.03 or 93.04 .
93.03 Other firearms and similar devices which operate by the firing of an explosive charge(for example, sporting shot guns and rifles, muzzle-loading  firearms,
Very pistols and other devices designed to project only signal flares, pistols and revolvers for  firing blank ammunition, capt ive-bolt  humane killers, line-
throwing guns ).
93.04 Other arms(for example, spring, air or gas guns and pistols, truncheons), excluding those of heading No. 93.07.
93.05 Parts and accessories of articles of headings No 93.01 to 93.04.
93.06 Bombs, grenades, torpedoes, mines, missiles and similar munitions of  war and   parts thereof; cartridges and other ammuni tion and projectiles and parts
thereof, including shot  and cartridge wads.
93.07 Swords, cutlasses, bayonets, lances and similar arms and parts thereof and scabbards  and  sheaths therefor.
94 Furniture; bedding, mattresses, mattress supports, cushions and similar  stuffed furnishings; lamps and lighting fittings, no t elsewhere specified or
included; illuminated signs, illuminated name-p lates and the like; prefabricated buildings
94.01 Seats (other than those of heading No.94.02),whether  or  not convertible into  beds, and parts thereof.
94.03 Other furniture and parts thereof.
94.04 Mattress supports; articles of bedding and similar furnishings (e.g. mattresses, quilts, eiderdowns, cushions, pouffes and  pillows) fitted with springs or   stuffed
or internally fitted with any material  or of cellular rubber of  plastics, whether or not covered.
95 Toys, games and sports requisites; parts and accessories thereof
95.04 Articles for funfair, table or parlour games, including pin - tables, billiards, special tables for casino games and autom atic bowling alley equipment.
95.05 Festive, carnival or other entertainment articles, including conjuring  tricks and  novelty  jokes.
95.08 Roundabouts, swings, shooting galleries and other fairground amusements; travelling circuses, travelling menageries and tr avelling theatres.
96 Miscellaneous manufactured articles
96.03 Brooms, brushes  (including brushes constituting parts  of  machines, appliances or vehicles), hand-operated mechanical fl oor sweepers, not motorised, mops
and feather dusters; prepared knots and tufts for broom or brush  or making;  paint pads  and  rollers;  squeegees (other than roller squeegees).
96.04 Hand sieves and hand riddles.
96.05 Travel sets  for  personal toilet,  sewing or shoe or clothes cleaning.
96.14 Smoking pipes(including pipe bowls) and cigar or cigarette holders, and  parts thereof.
96.15 Combs, hair-slides  and  the like;  hairpins, curling pins, curling grips, hair-curlers and the like, other than those of heading No. 85.16,  and parts thereof.
96.16 Scent sprays and similar toilet sprays and mounts and  heads there for, powder - puffs and pads for the application  of co smetics or toilet preparation.
96.17 Vacuum flasks and other vacuum vessels, complete with cases; parts  thereof, other than glass inners.
9618 Tailors' dummies and other lay figures; automata and other animated  displays used for shop window dressing.WT/ACC/KHM/6
Page 63
ANNEX IV
CUSTOMS AND EXCISE DEPARTMENT
REFORM STRATEGY
I. INTRODUCTION
The Customs and Excise Department has embarked on a Customs Reform and Modernization
program aimed at creating a modern customs administration that meets the requirements of the
government for efficient revenue collection and for protection at the border, and that also meets theneeds of the private sector for fast, straightforward and reliable international trade.  This paper
outlines the Reform program of the Customs and Excise Department in the framework of the
economic reform policies of the Government of the Kingdom of Cambodia, and of the Ministry of
Economy and Finance.
Government Reform Program and Policy
In its Second Mandate, the  Royal Government of Cambodia has committed itself to sustained
economic growth and poverty reduction.  A policy statement by Samdech Prime Minister Hun Sen tothe National Assembly on November 30, 1998, demonstrated the Government’s strong political will
and commitment to continuing a strong policy of reform in the following areas:
- Public Service Reform
- Military and police reform
- Justice and judiciary reform, and
- Economic Reform
Economic reform is the highest priority for the Government.  Its aim is to achieve sustainable
economic development and to secure macro economic stability for Cambodia.  This will be done
through efforts to promote gradual economic growth by utilizing national capacity and potential and
cooperation and assistance from overseas.  A core task and precondition for the success of theeconomic reform process is the strengthening of the civil service and the development of good
governance.  A key supporting element for achieving these objectives is the need to strengthen
revenue collection so that the Government can fund the various initiatives that constitute its reform
program.
Ministry of Economy and Finance Economic Reform Policy
In carrying out the Government’s policy on economic reform, the Ministry of Economy and Finance
has established its own policy and work programs covering the following areas:
- Economic policy including fiscal reform
- Public finance policy, and
- Foreign economic policy
The Minister of Economy and Finance has taken steps to strengthen budget management capacity in
the Ministry.  He is also committed to broadening the tax base and improving customs administration
through reform programs in both the Tax and Customs and Excise Departments.  Technical assistance
is being provided by donor agencies (UNDP, IMF, AsDB, and several bilateral donors) in many areas,
including the tax and customs departments.
The institutions and units under the direction of the Ministry of Economy and Finance have been
directed to develop reform programs and action pl ans to implement the reform policies of the Royal
Government and of the Ministry.  This document outlines the Reform Program of the Customs and
Excise Department.WT/ACC/KHM/6
Page 64
II. CUSTOMS REFORM PROGRAM
Reform Objectives:
The Customs and Excise Department under the direction of the Delegate of the Royal Government in
Charge of the Customs and Excise Department has launched an ambitious program of reform.  The
Customs Reform Program (CRP) is a comprehensive set of initiatives aimed at fundamentally
changing and strengthening the way the Department operates.  Its objective is to strengthen all aspectsof the Department’s operations, including its people, its organization structure, its legislative base, its
systems and procedures and its facilities and infrastructure.
These initiatives are essential to prepare the department to meet the many changes and challenges
facing Cambodia today.  The CRP will enable the Department to meet the Government’s expectations
for revenue collection, and also to meet the expectations of the trading community and the general
public for an efficient, professional and transparent customs service.  The CRP will also ensure the
Departments is prepared to meet the requirements of membership in the World Trade Organizationand the ASEAN group of nations.
The program will see the development and implementation of a modern customs law and related
regulations, the restructuring of the Customs Tariff to meet international commitments, the
streamlining and simplification of customs procedures to bring them in line with international
standards and to improve trade facilitation, the introduction of automation, the strengthening ofenforcement programs to reduce smuggling and other illegal practices, the provision of adequate
facilities and equipment to enable the Department to carry out its mandate, and the enhancement of
the skills, knowledge and professionalism of customs staff.
The Customs and Excise Department is receiving technical assistance from the International
Monetary Fund (IMF) the United Nations Development Program (UNDP) in its reform program.There is a resident Customs Advisor and specialist advisors will be brought in to assist in many areas
of development.  Short-term technical assistance is  also being provided by the ASEAN Secretariat and
by various bilateral donors.
The objectives of the CRP are outlined below.  Each of these objectives is supported by detailed
action plans that will be monitored by the Customs Reform Steering Committee.
1. Strengthening Customs Legal Framework:
The development and implementation of a revised Law on Customs to provide the legislative
base for reform and to meet international commitments and standards.
The existing customs legislation (the Law on Duties on Exported and Imported Goods -1989)
is inadequate to meet the needs of a modern customs administration.  It is very limited inscope and does not provide the legislative base required to support the changes planned
through the Customs Reform Program.
Some five years ago with the assistance of the UNDP, a draft customs code for Cambodia was
developed based largely on the prevailing French Customs Code.  The draft code was
presented to the Council of Ministers about two years ago, but has not yet been approved.
The draft law is very detailed and too complex, with some 340 articles.  In addition, there is
some concern that this draft code is not appropriate given the new commitments of theGovernment to the WTO, ASEAN, and the various conventions of the World Customs
Organization (WCO) particularly the Kyoto Convention on the Simplification of Customs
Procedures.WT/ACC/KHM/6
Page 65
Therefore a careful review of the draft will be undertaken and a revised draft customs code
will be developed and presented for approval.  There will be provision for the development of
related customs regulations.  This draft law will take into account the requirements of an
automated customs processing system.  Plans are to have the draft code completed by the end
of the year 2001.  All interested parties both in Government and in the private sector will be
consulted in the development of the new customs code.
2. Restructuring the Customs Tariff:
The development and implementation of a streamlined and rationalized Customs Tariff aimed
and reducing the number of tariff bands and the maximum tariff rate.
The restructuring of the Cambodian Customs Tariff is part of the Government’s commitment
to fiscal reform that is in turn part of its  program of economic reform.  These programs are
supported by the International Monetary Fund through its Poverty Reduction and Growth
Facility arrangement, and under a World Bank Structural Adjustment credit.  The UNDP andother donor agencies are also supporting the Government’s program.
The restructuring program calls for the reduction in the number of tariff bands from 12 to 4,
and the reduction of the maximum customs tariff rate from 120% to 35% in 2001. In order to
protect important Government revenue collections from Customs, the Government is
increasing its excise duty rates at the same time its tariff rates are being reduced. The
reduction of the number of tariff bands from 12 to 4 will greatly simplify the administrationof the tariff.  The long-term goal is to have an unweighted tariff rate of less that 15% in the
year 2002/2003.
3. Modernizing and Streamlining Customs Procedures:
The introduction of simplified customs clearan ce procedures that enhance trade facilitation
and improve effectiveness of operations through the application of risk managementtechniques.
Current customs clearance procedures are complex, labour intensive and inefficient.  The Department
is undertaking a fundamental review of its processes and procedures to identify areas that need to be
streamlined and modernized to meet international standards and to prepare for automation.  This will
include examining the roles of other government departments in the importing and exporting process
with a view to a long-term goal of consolidating border controls within customs to the greatest extent
possible.  Improvements in the clearance process will be implemented on an ongoing basis as theDepartment moves closer to automation.  Areas to be streamlined include reporting and control of
cargo, transit controls, cargo inspection and release, import declaration and revenue accounting, tariff
classification and valuation, and the development of a post clearance audit program.
4. Expanding International Relations:
The development of expanded multi-lateral and bi-lateral relations, including accession to the
World Trade Organization, the World Customs Organization, and the ASEAN Free Trade
Area, negotiation of trade agreements (New Zealand, Canada).
The Government is committed to joining the Wo rld Trade Organization (WTO), and preliminary
discussions have begun.  The Customs and Excise Department faces major challenges in preparing to
meet the customs-related requirements of the WTO membership.  These requirements relate primarilyto the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade
1994 (the WTO Valuation Agreement).  The existing methods of determining the value of importedWT/ACC/KHM/6
Page 66
goods for customs purposes will undergo major changes with the move to “transaction value” or the
price actually paid for goods as is required under the Valuation Agreement.  The development of post
clearance audit will be an essential part of the introduction of the Agreement, and reflects a major
change in the customs process that will benefit both the Department in terms of revenue collection
and the importers in terms of trade facilitation and levels of service from Customs. Procedures also
need to be developed to ensure that Customs is able to implement border control measures regarding
intellectual property, as called for by the WTO TRIPS Agreement.
The Department recently became a member of the World Customs Organization (WCO) and will be
implementing changes in operational procedures to meet the international standards of the WCO(primarily the Kyoto Convention on the simplification of Customs procedures).
The Department will increase its international enforc ement liaison and co-operation efforts.  This will
involve more involvement with the WCO Regional Intelligence Liaison (RILO) office, increased
bilateral information exchanges and the establishment of an international contact point in the
Department.
5. Strengthening Enforcement:
The development and implementation of an enforcement strategy and program based on the
principles of risk management in order to reduce smuggling and other illegal cross border
activities.
The Department faces many difficulties in its enforcement efforts at this time.  Several other
government agencies have assumed a customs enforcement role resulting in duplication of effort,
inefficient use of resources, and ineffective anti-smuggling efforts.  The Department lacks essential
equipment and tools to carry out effective enforcement, training has been limited, and corrupt
practices often frustrate enforcement efforts.  In order to reduce smuggling the Department is
developing a short-term anti-smuggling strategy that will address the highest priority smuggling areas.
In the medium to long term a comprehensive enforcement strategy will to be developed.  This strategy
will include a strategic threat assessment, and a detailed assessment of the effectiveness of current
enforcement efforts.  It will present a structur ed enforcement program including recommendations on
organization, staffing levels and training, operational improvements to existing units, and steps to
reduce internal malfeasance.  The strategy will also address the issue of other government agency
involvement in customs enforcement, and internationa l co-operation.  The plan will take into account
the streamlining initiatives outlined in the previous section, and will ensure enforcement efforts areco-ordinated with other operational areas of the Department.
6. Automating Systems and Procedures:
All Information Technology (IT) opportunities will be exploited to improve business systems,
operating efficiency and service to clients.  The long-term goal is fully automated systems for
all customs business processes.
The Department has very limited automation at this time.  Systems that are in place are not
inter-connected and are mostly statistical systems or systems that provide support information
for use of specialist groups (e.g. the Valuation Division system, and the statistical data
system).  The existing process of importing goods into Cambodia follows a traditional manual
system of cargo reporting, declaration processing, revenue accounting, and clearance ofgoods.WT/ACC/KHM/6
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Early in 2001 the Director of the Customs and Excise Department approved an Information
Technology Framework.  This Framework assesses the current state of automation in the
Department, and lays out a strategic plan and an approach to IT development and
implementation.  The Framework also includes short-term, medium-term and long-term
action plans.
Short-term actions (0 to 12 months) include enhancing the statistical data collection system,
introducing an effective linkage to the SGS Valuation support System, and identifying new
and potential “skill gaps” caused by the introduction of IT.
Medium-term activities (0 to 36 months) include creating a permanent IT organization,
identifying potential automation projects, identifying potential sources of funds and technical
assistance, reviewing legislation for IT implications, and conducting detailed feasibility
studies of priority projects.
The long-term activities (12 to 48 months) include the development of detailed requirements
statements, selection of system supplier or developer, system development and
implementation, and post implementation support and review.
IMF technical advisors and the technical support and equipment provided by SGS under the
terms of the PSI contract, will assist the Department to implement the IT Framework and to
launch its IT initiative.
7. Improving Departmental Orga nization and Human Resources:
The implementation of a new organizations structure to better meet the needs of the
organization, and the development and implementation of a comprehensive human resource
plan, including training and development programs.
The existing organization structure of the Department is not responsive to current
requirements and circumstances, and needs to be changed.  Changes have already been
proposed to the organization structure of the Department.  Further review and development of
the organization in light of the various reform initiatives will be undertaken.  Every effort will
be made to increase delegation of authority and to implement monitoring and control
mechanisms to ensure managers are held accountable for their decisions.
The knowledge and skills of customs officers need to be improved to prepare them to
administer and manage the new systems and procedures coming under the CRP, such as the
introduction of post clearance audit, and the introduction of computerization.  A
comprehensive training program is also required to ensure that the Government can
confidently return responsibility for tariff classification and valuation to the CustomsDepartment and phase out the PSI program.  Th e Department will create a Customs Training
Centre that will be responsible for the development and delivery of much of the training
programs.  Overseas training and development opportunities will be provided to staff as and
when available.
The Department will develop a comprehensive human resource plan.  In addition to the
organization structure and training requirements, other issues to be addressed in the human
resource plan include staffing requirements, staff remuneration, policies on staff recruitment,rotation and promotion and an integrity program (which will include a code of conduct for
customs staff).
8. Maximizing Return From PSI Operations:WT/ACC/KHM/6
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In the short term the goal is to maximize the return from the PSI operations.  The long-term
goal is to develop Customs’ capacity and systems so that the responsibility for tariff
classification and valuation can be returned to the Department.
The Government signed a two-year contract with the pre-shipment inspection (PSI) company
Societe Generale De Surveillance SA (SGS) in 2000.  The purpose of pre-shipment inspection
is to further assist the Customs and Excise Department modernize its operations, to minimizethe opportunities for fraud and fiscal evasion through misdescription misclassification and
under-valuation of goods by importers, and to facilitate trade.  Customs is committed to
maximizing the return from pre-shipment operations.
As an integral part of its contract, the PSI company is required to provide assistance in the
modernization of Customs.  This assistance includes the provision of specialized training in
customs techniques and management skills, and the provision of assistance and hardware in
the development of an automated customs clearance system.
In addition to maximizing the return from the PSI contract, the Department is committed to
developing and modernizing its own systems and procedures, to enhancing the technical skills
and capacities of its staff and strengthening its internal controls.  The goal is that through the
reform program the Customs and Excise Department will develop its capacity to the point
where there will no longer be a requirement for PSI operations and they can be phased out.The assistance to be provided under the PSI contract  will greatly assist in achieving this goal.
9. Improving Departmental Infrastructure:
The development of an infrastructure plan to ensure the Department is provided with adequate
office and examination facilities, furniture and equipment, computers and enforcement tools
(vehicles, detection equipment, etc.).
Many of the Department’s offices and check points are no longer adequate to meet the needs
of the Department and of the trade.  Buildi ngs have become rundown and in a poor state of
repair, and equipment is lacking in all areas.  These inadequacies impair our capacity to do
our jobs and create inconvenience and delays for importers and travellers.  In addition, our
offices must be refurbished or replaced in order to accommodate the widespread introductionof automation.
In order to determine specific requirements and priorities a detailed infrastructure plan will be
developed.  It will assist in securing funding for our infrastructure program from both
Government and external sources.
10. Enhancing Service to the Public and Trade Facilitation:
To improve levels and quality of service to the public and to improve trade facilitation by
providing prompt, reliable and professional service to legitimate business.
The Department will strengthen its appeal and dispute resolution procedures so that traders’
appeals can be promptly and fairly dealt with, in a transparent manner.  The new Customs
legislation will provide clear appeal procedures and dispute settlement mechanisms.
As part of the review of clearance procedures and the introduction of automation, the
Department will identify opportunities to reduce the time and paperwork required to cleargoods through Customs.  We will consult with the trade in developing all of our new
programs, to ensure that their requirements are taken into considerationWT/ACC/KHM/6
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11. Management of the Reform Program:
A management structure in place to manage the Customs Reform Program and ensure its
success.
A Customs Reform Steering Committee is bein g formed at the Ministry of Economy and
Finance to provide strategic direction and to monitor progress of the reform Program.  Within
the department a Customs Reform Working Group under the guidance of the Director of theDepartment has been formed to manage the reform plan.  Goals and action plans are under
development and the Working Group will monitor performance against them.  Several Sub-
Groups are in place to carry out the various projects, under the direction of the Reform
Working Group.
Under the IMF Technical Cooperation Action Plan  (TCAP) a resident Customs Advisor is in
place and will provide a wide range of technical assistance and advice to the Department.  In
addition, the TCAP provides for a number of short-term technical assistance missions invarious technical areas of operations.WT/ACC/KHM/6
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Activity Summary
Objective:
“Strengthen customs administration through a coherent and comprehensive strategy to modernize the
customs department and to permit the successful phase out of the pre shipment inspection program”
This objective will be achieved through the following activities:i) Maximize return from pre shipment inspection operations:
(a) Improve working relationship with PSI company;
(b) Create and staff a revenue analysis unit;
(c) Implement the reconciliation procedures of the PSI contract;
(d) Provision of quarterly reports on exemptions by the PSI company;
(e) Implementation of the “assistance to Customs” components of the PSI
contract.
ii) Strengthen customs administration:
(a) Develop and implement a new Law on Customs that meets international
standards, and the needs of Cambodia;
(b) Implement Tariff restructuring program resulting in an unweighted tariff rate
of less then 15% in 2002/2003;
(c) Strengthen customs enforcement capabilities;
(d) Modernize and streamline customs procedures;
(e) Strengthen the organization structure of the Department, improve human
resource skills and knowledge through a comprehensive human resource and
training plan;
(f) Implement an infrastructure plan to provide facilities and equipment to
support the reform initiatives.
iii) Computerize customs operations:
(a) Develop an Information Technology Framework;
(b) Implement short term action plan to enhance the statistical data collection
system, to expand use of the SGS valuation data base, and to identify IT skill
gaps and provide training;
(c) Carry out preparatory steps to start up of automation project (create and staff
an IT organization, identify potential funding sources, review legislation,
identify potential technical assistance sources);
(d) Conduct a feasibility study to determining automation requirements and
priorities, select service provider to develop system);
(e) Develop and implement the automated system.
iv) Management of the reform program:
(a) Create a Customs Reform Steering Committee and a Reform Working group
to manage the reform program;
(b) Create a small reform project team;(c) Provision and coordination of technical assistance;
(d) Develop and implement a public relations program;
(e) Monitor progress of reform program implementation.WT/ACC/KHM/6
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ANNEX V
Agricultural Products, imports of which are exempt from value added tax:
a) Seeds  under HS Sub-headings No. 1005.10.00
1006.11.00
1008.30.00
1207.20.001207.30.00
207.40.00
207.50.00
207.60.00
1207.91.00
and in the headings No.  12.04
12.0512.06
12.09
50.01
a) Animal feed stuff and supplementary feed  in HS headings No: 23.08 and 23.09, except in
the sub-headings No:  2309.10.10 and 2309.10.90.
b) Animal species  in the sub-heading Nos. :
0101.11.00 0102.10.00 0103.10.00 0104.10.10 0104.20.10 0105.11.10
0105.12.10 0105.19.10 0105.19.30 0105.92.10 0105.93.10 0106.00.10
0511.10.00 0701.10.00
Source: Circular No. 4, Ministry of Economy and Finance (4 June 2001)
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