RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KHM/13
26 July 2002
(02-4163)
Working Party on the
Accession of CambodiaOriginal:  English
ACCESSION OF CAMBODIA
Action Plan for the Implementation of the Customs Valuation Agreement
The Government of the Kingdom of Cambodia has submitted the following Action Plan for
the Implementation of the Customs Valuation Agreement by Cambodia, with the request that it be
circulated to the Working Party.
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Page 2WTO Customs Valuation Agreement
Implementation/Technical Assistance Plan
Year Steps/ Measures/ Activities Technical Assistance (Provided) or Sought
2000/
2001Current Development and On-going Programmes
- Drafting of Law on Customs initiated to ensure WTO compliance and to meet WCO standards.( Outcome:
Customs Legislation that fully complies with WTO requirements)
- Technical training in valuation techniques provided to 24 officers by NZ customs experts.(Outcome: Basic
knowledge of WTO VA policies and procedures)
- Draft WTO Valuation Agreement (WTO-VA). implemen tation plan prepared.((Outcome: comprehensive
action plan prepared)
- Technical assistance on creation of a post clearance aud it function. (Outcome: Establishment of a basic PCA
program and plan for full implementation)
- Fifty staff provided with introductory training in WTO-VA. (Outcome: Improved awareness of WTO VA
policies and procedures)
- Overseas training in valuation techniques at Malaysian. customs institute (AKMAL) and through Japanese
Customs.( Outcome: Improved awareness of WTO VA policies and procedures)
- SGS valuation support system (VSS), a valuation reference database, implemented in head office and major
customs offices. (Outcome: Improved staff capacity to assess values of imported goods)
- Departmental valuation reference database implemented in Valuation office. Outcome: Improved staff
capacity to assess values of imported goods)- TCAP: IMF expert and resident advisor.
- NZ Customs through ASEAN Secretariat.
- New Zealand Customs (ASEAN Secretariat).
- New Zealand Customs (ASEAN Secretariat).
- PSI company (SGS) as part of contract.
- Malaysian and Japanese Customs Service.
- Provided by SGS as part of TA
commitments.
- Departmental initiative.
2002 -  Draft LOC submitted to Council of Ministries (end of July). (Outcome: Customs Legislation that fully
complies with WTO requirements submitted for approval)
- Law on Customs submitted to National Assembly by end of 2002. Drafting of regulations (sub decrees,
Prakas) to be completed by end of 2002. (Outcome: Complete legislative package of law and regulations
fully compliant with WTO requirements)
- Creation of WTO-VA implementation project team. (Out come: Team of Government resources dedicated to
WTO VA implementation in place)
- Revisions to PSI contract to ensure compliance with WTO VA. (Outcome: PSI contract fully compliant with
WTO requirements)
- Preparation of detailed WTO-VA implementation plan (outline prepared in 2001 -details to be added).
(Outcome: detailed action plan in place).
- Development of transition strategy and plan for implementation of the valuation agreement. ) See attached
Annex. (Outcome: Comprehensive transitional plan to implement WTO VA provisions)
- Commence automation project implementation. (Outcome: Fully automated customs processing systems in
place)
- Implement Post Clearance Audit program. (Outcome: Establishment of a new organization responsible for
PCA and commencement of program operation)- IMF assistance through TCAP
- IMF assistance through TCAP
(IMF resident advisor)
- NZ Customs (Asean Secretariat).
- SGS with Customs and Excise Department.
- NZ Customs (Asean Secretariat).
- IMF assistance through TCAP
(IMF resident advisor)
- To be determined. TCAP providing start up
assistance. Major donor required for projectfunding.
- NZ Customs, Japanese Customs and IMF.WT/ACC/KHM/13
Page 3Year Steps/ Measures/ Activities Technical Assistance (Provided) or Sought
2003 -  Preparation of departmental valuation technical pro cedure manuals. (Outcome: Complete customs valuation
operational policy and procedures documentation in place for staff guidance)
- Development of technical training program (both for staff and traders)  (Outcome: Comprehensive training
program developed and tested for delivery)
- Commence trade outreach program (consultation/informatio n giving) (Outcome: Participation of trade in the
implementation of the new procedures and improved compliance)
- Begin reduction of list of goods subject to determined values by Government, and begin move to transaction
value. (Outcome:  Implementation of the transitional plan)
- Implement new law on customs including regulations. (Outcome: Implementation of a modern customs
legislative base that supports WTO obligations and fully complies with international standards – WCO Kyotoconvention)
- Provide training on new LOC (internal and external). (Outcome: Staff fully trained in new law leading to its
successful implementation)
- Commence training of staff and trade in WTO-VA (approximately twelve to six months prior to
implementation). (Outcome: Enhanced understanding of and capacity to apply the WTO VA provisions
within the Department and the trading community)
- Implement automated customs processing system. (Outcome: Major improvement in departmental
operations, revenue collection, trader  compliance and trade facilitation)- Technical assistance needed.
2004 -  Implement WTO-VA (subject to accession process)  (Outcome: Successful implementation of the VA)
- Commence implementation of transitional provisions. (Outcome: Commencement of application of WTO
VA agreement without revenue loss due to poor compliance)
- Provide transitional assistance and guidance to traders. (Outcome: successful implementation of the
transitional plan and eventually the full application of the VA)- Technical assistance needed.WT/ACC/KHM/13
Page 4
ANNEX
Transition Plan:
Implementation of the WTO Customs Valuation Agreement
Requirement :Cambodia currently applies minimum values to sensitive products to provide consistency of treatment
and to deter valuation fraud.  We recognize that while there is provision in Annex III, Paragraphs 1
and 3 to the Agreement for a transition period for developing countries, we understand that the use of
minimum values will have to be phased out and replaced with the transaction value provisions of the
Agreement.  The Royal government of Cambodia will require a transitional period for application ofthe valuation provisions in order to protect the revenue.  Moving to transaction value at the time of
joining the WTO would place the revenue at grave risk.  The challenges we face in implementing the
provisions include the low rate of voluntary compliance by importers, their lack of sound accounting
systems and record keeping, and the limited capacity  of the Department to administer transaction
valuation provisions.  We will need time to educate importers in the new valuation provisions and inthe requirements for customs record keeping and accounting systems.  Considerable time will be
required as well to develop our internal administrative procedures such as a post clearance audit
program, and to educate staff.
Transition plan requirements:
As part of its WTO Valuation Agreement implementation plan the Customs and Excise Department
will be seeking technical assistance in preparing and implementing a transition plan.  The transitional
period will be sought only for the application of the hierarchy of valuation techniques, and not for the
other provisions of the Valuation Agreement. Matters relating to transparency, confidentiality, appealrights, sureties for the release of merchandise and the adoption of the interpretative notes will be
implemented at the time of accession.  In addition, the new Law on Customs will be fully compliant
with the WTO Agreement. Transitional provisions wi ll be included in the Law to accommodate the
phasing approach being taken.
We propose to phase out the use of minimum values and to introduce the use of transaction value
based on the following transition strategy.  It should be noted that this is a preliminary strategy and we
will seek technical assistance in developing a complete transition plan.  We will also consider the
experiences of other countries in the region.
(First year of WTO membership)
- Imports by large, multinational and Cambodian companies that have a well established
compliance record with the Department and are considered low risk importers will be appraised
based on the provisions of the agreement.  While imports by such companies represent a relatively
small proportion of the volume of imports, they account for a large proportion of the value of
imports and revenue collection.  Compliance will be ensured through use of post clearance audit
procedures. Valuation declarations may be used to help the Department administer and enforce
the new provisions.  Transaction valuation would likely also apply to non sensitive goods
imported for re-export.
(Second year of WTO membership)
- At the end of two years, imports by investment companies and other importers entitled to
exemption (NGOs, foreign missions, etc) will be subjected to the VA provisions.WT/ACC/KHM/13
Page 5
(Third year of WTO membership)
- At the end of three years, imports of low value goods that attract relatively low rates of duty and
that pose limited revenue risk, by selected, low risk importers, and sectors will be included.
(Fourth year of WTO membership):
- At the end of four years, remaining importers of low value goods with relatively low rates of duty
will be included.
(Fifth year of membership)
- At the end of five years, all importations including highly taxed and sensitive goods will be
included.
Note: this schedule may be accelerated depending on the results and success of the transition plan
implementation.
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