RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KHM/21
15 August 2003
(03-4285)
Working Party on the
Accession of Cambodia
REPORT OF THE WORKING PARTY
 ON THE ACCESSION OF CAMBODIA
Introduction
1. The Government of the Kingdom of Cambodia applied for accession to the World Trade
Organization in October 1994.  At its meeting on 21 December 1994, the Preparatory Committee forthe WTO established a Working Party to examine the application of the Government of Cambodia to
accede to the World Trade Organization under Article XII of the Marrakesh Agreement establishing
the WTO.  The terms of reference and the membership of the Working Party are reproduced in
document WT/ACC/KHM/1/Rev.6.
2. The Working Party met on 22 May 2001;  14 February and 14 November 2002;  and 16 April
and 22 July 2003 under the Chairmanship of Mr. A. Meloni (Italy).
Documentation provided
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the
Foreign Trade Regime of Cambodia (document WT/ACC/KHM/2), the questions submitted by
Members on the foreign trade regime of Cambodia, together with the replies thereto, and otherinformation provided by the authorities of Cambodia (WT/ACC/KHM/3;  WT/ACC/KHM/6;
WT/ACC/KHM/7 and Revisions 1 and 2;  WT/ACC/KHM/8;  WT/ACC/KHM/9;  WT/ACC/KHM/10
and Revisions 1 and 2;  WT/ACC/KHM/12;  WT/ACC/KHM/13 and Revision 1;  WT/ACC/KHM/14
and Revision 1;  WT/ACC/KHM/15 and Revisi on 1;  WT/ACC/KHM/16 and Revision 1;
WT/ACC/KHM/17 and Revision 1;  WT/ACC/KHM/18;  and WT/ACC/KHM/20), including the
legislative texts and other documentation listed in Annex I.
Introductory statements
4. The representative of Cambodia said that Cambodia had embarked on a process of
fundamental political and economic reforms since the adoption of a new Constitution in 1993, which
had restored the constitutional monarchy in his country.  However, Cambodia was still heavily
marked by two decades of armed conflict, which had resulted in important losses of human resources,
and political and economic instability.  The lack of skilled manpower remained a major obstacle onCambodia's way to economic development.
5. His Government had developed a "triangle strategy", aimed at restoring peace, ensuring
sustainable development, and integrating Cambodia into the world community.  Reforms had been
implemented simultaneously in many areas, including administrative reform;  legal and judicial
reform of the financial, economic and trade regime;  and military reform.  Cambodia had joined theAssociation of South-East Asian Nations (ASEAN) in April 1999.WT/ACC/KHM/21
Page 2
6. Accession to the WTO was one of the highest priorities of his Government.  Closer
integration into the world economy was seen as a powerful instrument to alleviate poverty and the
main driving force for socio-economic development.   In reforming its trade system, his Government
had paid particular attention to aligning its policies and practices to WTO rules, especially the
principles of MFN and national treatment.  A tariff nomenclature based on the 1996 Harmonized
System had been put in place, and numerous laws had been drafted and adopted to ensure compliance
with WTO regulations.
7. Implementation of WTO requirements was, however, a lengthy and difficult process.  In view
of the difficulties his country was facing, and bearing in mind Cambodia's status as a least-developed
economy, the representative of Cambodia called on members of the Working Party to be flexible in
the negotiations to establish Cambodia's WTO commitments and to extend special and differential
treatment as foreseen in the provisions of the WTO Agreements regarding least-developed countries(LDCs).
8. Members of the WTO welcomed the application from Cambodia to join the Organization.
WTO membership was considered important for Cambodia's development and integration into the
world trading system.  Appreciating the effo rts already undertaken by Cambodia to achieve
compliance with WTO rules and principles, they noted that further work was needed in this regard.Members pledged to work constructively with Cambodia in accomplishing this task, and several
Members would offer technical assistance to facilitate Cambodia's accession.  Members looked
forward to Cambodia's early accession on appropriate terms.  Some Members referred to Cambodia's
status as a least-developed country, and would consider this a relevant factor in establishing
Cambodia's terms of accession.
9. The Working Party reviewed the economic policies and foreign trade regime of Cambodia
and the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by
members of the Working Party on the various aspects of Cambodia's foreign trade regime, and on the
terms and conditions of Cambodia's accession to the WTO are summarized below in paragraphs
10 to 223.
ECONOMIC POLICIES
Monetary and fiscal policy
10. The representative of Cambodia said that the cornerstone of Cambodia's monetary policy was
low-inflationary economic growth.  A restrained monetary policy had been maintained since 1993 to
serve this end.  As a result, annual inflation had fallen from three-digit levels in 1993 to single-digit
figures at present.
11. The Cambodian banking system had undergone important changes since 1989, when the
mono-type banking system had been replaced by a two-tier system comprising the central bank and
commercial banks.  The central bank – the Nati onal Bank of Cambodia (NBC) – was responsible for
formulating and implementing Cambodia's monetary policy.  The main instruments used to control
liquidity were mandatory reserve requirements, and limits on bank financing of the budget.  The
introduction of treasury bills as a complementary policy instrument had also been considered, and twoissues of treasury bills had taken place in 2003.
12. Fiscal policy had been at the core of Cambodia's reform strategy.  Domestic financing of the
budget had been eliminated since 1999, and focus had shifted towards broadening the tax base and
improved tax collection.  The tax system had been reformed in January 1997 with the adoption of the
Law on Taxation.  The Law had introduced a turnover tax on the first sale of imported products(previously exempt);  extended excise duties to automobiles, international air travel, and internationalWT/ACC/KHM/21
Page 3
communication services;  imposed taxes on interest income and dividends;  strengthened the
application of minimum tax levels;  subjected profits on exploitation of oil and gas and natural
resources to a tax of 30 per cent;  introduced income tax for government employees, elected officials,
and employees of NGOs;  established a system of withholding tax;  as well as replacing some
turnover and consumption taxes by a value added tax.  The ratio of tax revenue to GDP was still verylow, and concentrated on few sources of revenue.  In 2000, taxes had accounted for approximately
73 per cent of total government revenue, principally derived from customs duties (48 per cent),
excises (12 per cent) and VAT (40 per cent).
13. Cambodia had established two taxation regimes, namely the "Real Regime" and the
"Estimated Regime".  The "Real Regime" affected  large and medium sized taxpayers, i.e. legal
entities and individual businesses with annual turnover exceeding 500 million Riels for goods
(approximately US$130,000) or 250 million Riels (U S$65,000) for services, or 125 million Riels
(US$32,000) in the case of government contracts.  Large and medium sized taxpayers were subject to
VAT, while other taxpayers were assessed a two per cent turnover tax under the "Estimated Regime".
The representative of Cambodia added that a "Simplified Tax Regime", similar to the "Real Regime"
but covering smaller taxpayers and based on self-assessment, might be introduced at a future date yet
to be determined.
Foreign exchange and payments
14. The representative of Cambodia said that the objective of Cambodia's exchange rate policy
was to maintain a market-based exchange rate.  The value of the national currency - the Riel - had
been freely determined by the market since 1993.  The National Bank intervened occasionally in the
currency market to bolster international reserves and to smooth excessive exchange rate fluctuations.
15. Cambodia's current foreign exchange system was based on the Law on Foreign Exchange of
1997.  According to this Law, all foreign exchange  transactions including purchases and sales of
foreign currency, transfers, and all types of international settlements and capital flows were permitted
without restriction provided these were effected through authorized intermediaries (which would
include foreign bank branches).  Foreign currency transactions equalling US$10,000 or more weresubject to a declaration.  Cambodia did not require surrender of foreign exchange proceeds from
imports or exports.
16. Cambodia had introduced current account convertibility of its currency as provided under
Article VIII Sections 2, 3 and 4, of the IMF Artic les of Agreement, and had been granted membership
under Article VIII on 1 January 2002.
Investment regime
17. The representative of Cambodia said that th e Law on Investment of 4 August 1994, together
with its Sub-Decrees of 29 December 1997 and 11 June 1999, regulated all investment, domestic or
foreign, in Cambodia.  The Law (Article 8) granted national treatment generally to foreign investors,
except in the ownership of land.  He added that Cambodia would normally not prohibit or restrict
foreign investment, except for reasons of national security and social safety, or when deemed
necessary for economic reasons.  Sectors subject to various forms of investment restrictions werelisted in document WT/ACC/KHM/6, Annex 1.  In so me cases, such as investment in rice milling,
foreign investment was subject to local equity part icipation, to be determined through negotiations
between the investors.  Foreign investment in live stock and forestry required a local partner.  The
criteria governing these restrictions were la id down in Sub-Decree No. 88 of 29 December 1997.
18. Cambodia's Constitution (Article 44) reserved the ownership of land for Cambodian citizens
or legal persons with minimum 51 per cent Cambodian ownership.  Foreign investors were allowed toWT/ACC/KHM/21
Page 4
lease or use land for up to 70 years in accordance with the 1994 Investment Law.  A proposal to
extend the time limit from 70 years to 99 years had been considered.  The 2001 Land Law defined
two types of land – concession land and leased land.  Concession land could be leased for a period of
maximum 99 years for agro-industrial projects.  Leased land was defined as real estate, including
buildings and land, available for short-term or long-term lease.  The leasing period could either beindefinite, or of specified duration.  Definite-period leases included short-term leases with a renewal
option, or long-term leases  for 15 years or longer.
19. Cambodia's legislation guaranteed compensation in case of expropriation.  Article 44 of the
Constitution stipulated that legal private property was protected by law, and the right to confiscate
property could only be exercised in the public interest as provided for in the law and against fair and
just advance compensation.  Article 9 of the Law on Investment provided a general guarantee against
nationalisation.  To enhance investor confidence further, Cambodia had concluded bilateralinvestment treaties to provide legal protection to foreign and domestic investors.  Cambodia had
concluded bilateral investment guarantee agreements with 12 countries (China, Croatia, France,
Germany, Indonesia, Malaysia, the Philippines, the Republic of Korea, Singapore, Switzerland,
Thailand and Viet Nam), signed and ratified an agreement with the Overseas Private Investment
Corporation (OPIC) of the United States, and ratified the Multilateral Investment Guarantee Agency(MIGA) of the World Bank.
20. Cambodia provided incentives to stimulate investment in accordance with Article 14 of the
Law on Investment.  These incentives were granted to Cambodian and foreign firms without
discrimination upon application to the Counci l for the Development of Cambodia (CDC).
The Council processed applications within 45 days.  Incentives included (i) corporate tax at a rate of9 per cent, except for exploitation of natural resources, timber, oil, mining, gold, and precious stones
(30 per cent);  (ii) tax holidays on corporate tax for up to eight years with five-year loss carry forward
and exemption from all corporate tax for profits reinvested in Cambodia (the tax holidays were
granted on socio-economic and geographic criteria  laid down in Annex III of Sub-Decree No. 88 of
December 1997);  (iii) no withholding tax on dividends;  and (iv) unrestricted repatriation of profits.In addition, investment projects exporting 80 per cent or more of the production benefitted from full
import duty exemption on construction materials, means of production, equipment, intermediate
goods, raw materials and spare parts.  The import duty exemption was also available for projects
located in designated Special Promotion Zones (SPZ), the tourism industry, labour-intensive
industries (e.g. garments, footwear and toys), agro-industry and food processing industries
(i.e. canning), as well as physical infrastructure and energy generation (roads, bridges, airports,
seaports, power generation, etc).  Incentives could be revoked according to Article 7.2 of Sub-DecreeNo. 88, and his Government had been considering revising some of the incentives offered under the
Law on Investment.  Parliament had approved th e "Law on the Amendment to the Law on Investment
of the Kingdom of Cambodia" on 3 February 2003.  The amended law revised some of the incentives,
but also contained transitional provisions allowing the continuation of previously approved privileged
profit tax rates for a further five years.  The representative of Cambodia held the view that theprohibition on export subsidies defined in paragraph 1(a) of Article 3 of the Agreement on Subsidies
and Countervailing Measures (ASCM) did not apply to Cambodia by virtue of Article 27.2 of the
ASCM.  For further discussion of this issue, see the section on "Export subsidies".
State ownership and privatization
21. The representative of Cambodia said that private initiative had been encouraged in agriculture
since 1987, while nationalised industries had been granted progressive autonomy from the State
planning system in subsequent years.  Private ownership was now a constitutional right enshrined in
the 1993 Constitution.WT/ACC/KHM/21
Page 5
22. Privatization had been carried out during a first phase from 1991 to mid-1993, and a second
phase starting in April 1995.  During the first phase, priority had been given to attracting foreign
investors and maintaining employment.  Sectoral Ministries had been granted authority to sell and
lease State-owned enterprises within their area of responsibility with no external approval needed.
23. The second phase of the privatization process had been launched with new regulations
intended to tighten and centralise the control over privatization.  Under the leadership of the Ministry
of Economy and Finance, an inter-ministerial comm ittee had been established to draw up an inventory
of existing enterprises, formulate privatization strategies and monitor the privatisation process.  The
most important privatizations had taken place after 1995.  He confirmed that foreign and domestic
investors were treated equally in the privatization process, except with regard to the general restriction
on foreign ownership of land.
24. As of April 2000, 177 enterprises had been privatized - mainly in manufacturing, agriculture
and commerce – of which 152 had been leased to private investors, five were joint-ventures, and 20
had been sold off.  Eleven enterprises had been transformed into public enterprises and 16 remained to
be privatized.  A detailed status report is provided in Table 1(a), and enterprises in State ownership as
per March 2003 are enumerated in Table 1(b).  He added that 13 enterprises, which performed key
public services to the Cambodian economy would be retained as State-owned enterprises uponcompletion of the privatization programme.  Seven rubber companies would remain in State
ownership until 2006.  A list of the companies to be retained, including railway, water, electricity, and
public works and transport enterprises, as well as agricultural companies, is provided in Table 1(c).
25. The representative of Cambodia stated that hi s Government would ensure the transparency of
its ongoing privatization programme and would keep WTO Members informed of progress in thereform of its economic and trade regimes.  He stated that his Government would provide periodic
reports to WTO Members on developments in its programme of privatization as long as the
privatization programme would be in existence, along the lines of that already provided to the
Working Party.  He also stated that his Govern ment would provide periodic reports on other issues
related to its economic reform as relevant to its obligations under the WTO.  The Working Party tooknote of these commitments.
Pricing policies
26. The representative of Cambodia said that price controls had been lifted in 1989.  Prices for
goods and services were determined freely by the market, except for electricity and water.  Electricity
prices were regulated by the Ministry of Industry, Mines and Energy pursuant to Sub-Decree 35 of
26 April 1999, while the regulation of water user char ges rested with municipal and provincial bodies.
As for the future use of price controls, this was a matter still to be addressed by his Government.
27. The representative of Cambodia confirmed that, from the date of accession, in the application
of price controls, Cambodia would apply such measures in a WTO-consistent fashion, and take
account of the interests of exporting WTO Members as provided for in Article III.9 of the
GATT 1994, and in Article VIII of the General Agr eement on Trade in Services (GATS).  He also
confirmed that Cambodia published the list of goods and services subject to State control and anychanges in its Official Gazette and would continue to do so after accession.  The Working Party took
note of these commitments.
Competition policy
28. The representative of Cambodia said that Cambodia did not have a competition law, but
Cambodia was seeking assistance to draft legislation to ensure fair competition in various businessactivities.  Asked to provide information on how Cambodia was addressing the provisions ofWT/ACC/KHM/21
Page 6
Article VIII of the GATS concerning monopolies and exclusive service suppliers, he said that in
general his Government was pursuing a policy of gradual liberalization of previously monopolized
services to involve private participation, including foreign competition.
FRAMEWORK FOR MAKING AND ENFORCING POLICIES
29. The representative of Cambodia said that Cambodia was a constitutional monarchy.  The
Constitution had been promulgated in September 1993.  The Monarch was Head of State and held his
function for life.  The Monarch appointed the Prime Minister and Council of Ministers, as well as the
Commander-in-Chief of the Royal Cambodian Armed Forces.  He signed decrees on the appointment,
transfer or dismissal of high civil or military officials and judges, declared war, and could proclaim a
state of emergency.  Moreover, he signed and thereby ratified international treaties and conventions
approved by the National Assembly.
30. Legislative powers were exercised by the National Assembly, composed of 122 members
elected for 5 years in direct and general elections, and the Senate, made up of 61 members.  The
National Assembly was the only organ empowered to adopt laws.  Other functions of the Assembly
included approval of the national budget, the Gove rnment's programmes and strategies, and proposals
by the Government to introduce, reduce or annul taxes.  Legislation usually originated in the relevant
line ministries.  Draft legislation approved by the Council of Ministers was presented to the Assemblyfor review and enactment.  The Senate reviewed the laws passed by the National Assembly and could
make binding recommendations to the Assembly on the proposed legislation.  Legislation was
promulgated by signature of the Monarch and became effective in the capital ten days after signature
and throughout the country within 20 days.  Laws violating constitutional principles could be annulled
by the Constitutional Council, composed of nine members designated for nine-year terms by the
Monarch, the National Assembly and the Supreme Council of Magistracy.  The President of the
National Assembly was a member of the Council of the Throne, which decided on the succession of
the throne.  The President of the Senate acted as Head of State in the absence of the Monarch (or if
unable to fulfil his functions).
31. Judicial power was exercised by independent courts, judging on the basis of the Constitution,
existing laws and international agreements ratified by the Kingdom.  Cambodia's judicial system
comprised lower courts, including provincial, municipal and military courts, an Appellate Court and a
Supreme Court. However, the Supreme Court fore seen in the September 1993 Constitution had not
been established so far.  Pending its establishment, decisions of the Appellate Court could be appealed
to the Supreme Court established by the former State of Cambodia. According to the 1993
Constitution, the Supreme Court would be responsibl e for judicial review of the law and appeals of
decisions rendered by the Appellate Court.
32. Cambodia's present judicial system did not provide for specialised courts, such as
administrative or commercial courts.  At present, administrative decisions could be appealed to the
higher authority in the Ministries concerned, i.e. to the Minister.  These rulings could, in turn, be
appealed either to the courts or to the Prime Mini ster.  Cambodia recognized the need to establish an
appeals process, both administratively and to an independent tribunal to meet the requirements ofArticle X of the GATT 1994 and other such provis ions in WTO Agreements, e.g. customs valuation
and other procedures, trade remedies, and import licensing and quotas.  In this regard, Chapter III of
the draft Law on Judicial Organization envisaged the right to appeal of administrative decisions
before the Administrative Chamber of the Appellate Court.  Decisions of the Administrative Chamber
could then be appealed before the Supreme Court.  As per June 2003, the draft Law on JudicialOrganization was being examined by the Council of  Ministers and would subsequently be submitted
to Parliament.WT/ACC/KHM/21
Page 7
33. As for commercial disputes, the Ministry of Justice together with the Ministry of Commerce
were preparing a draft law establishing a Commercial Court.  In the interim, commercial cases were
brought before provincial and municipal courts.  Voluntary settlement of commercial disputes came
within the competence of the Chamber of Commerce,  empowered to act as an arbiter under Article 9
of the 1995 Chamber of Commerce Law.  Cambodia had ratified the New York Convention on theEnforcement of Foreign Arbitral Awards on 5 January 1960.  The Ministry of Commerce was
preparing a Law on Commercial Arbitration to implement the New York Convention.
34. A Member noted that commercial cases were being heard in common courts, pending the
establishment of a Commercial Court system.  The present system did not, in his view, offer
businesses adequate legal protection.  This Member considered the establishment of a Commercial
Court system with trained judges and staff essential to create a climate of transparency and
predictability, and the system or a functional equivalent should therefore be in place by the date ofaccession.  This Member also noted that Cambodia had ratified the New York Convention on the
Enforcement of Foreign Arbitral Judgments, and asked what legislative action the Ministry of
Commerce was taking to implement the Convention.
35. The representative of Cambodia confirmed that the National Assembly and the Senate had
adopted a law ratifying the New York Convention on the Enforcement of Foreign Arbitral Awards in2002.  He further confirmed that, as indicated in document WT/ACC/KHM/10/Rev.2, the Ministry of
Commerce was developing a draft "Law Establishing the Commercial Court" to implement the
Convention.  The draft law had been approved by the Council of Ministers in March 2003 and was
currently being considered by Parliament.  He expected the process of adopting and promulgating the
law to be completed by June 2004.  He noted that Cambodia was receiving some technical assistancein this area, and that his country was seeking more extensive and predictable assistance.  He further
confirmed that a Commercial Court system with trained judges and staff essential to create a climate
of transparency and predictability, or a functional equivalent, should therefore be in place by the end
of 2004.
36. The representative of Cambodia confirmed that a system of appeal from administrative
decisions in matters covered by WTO Agreements to an independent tribunal, as provided for in
Article X of the GATT and other WTO Agreements, was in the process of being established in the
draft Law on Judicial Organization, and would be operational by December 2004.  In addition, the
Commercial Court system would be established by 1 January 2005.  The Working Party took note of
this commitment.
37. The representative of Cambodia said that the Council of Ministers, or Royal Government, was
the executive branch of the Kingdom of Cambodia.  The Council was accountable to the NationalAssembly and chaired by the Prime Minister.  The Prime Minister was in charge of executing the
decisions taken by the Council.  He presented decrees to the Monarch for signature, and could issue
sub-decrees on his own authority, upon approval of the Council of Ministers.  Individual ministers
issued ministerial decrees, decisions and circulars.  Once signed, all regulatory acts were published in
the Official Journal.
38. Policies related to foreign trade were formulated and implemented by the Ministry of
Economy and Finance, in close co-operation with the Ministry of Commerce, the Council for the
Development of Cambodia, the National Bank of Cambodia, the Ministry of Planning, and the
Ministry of Industry, Mines and Energy.  Border control of international trade fell under the
competence of the Customs Department, which was in charge of tax collection and the preparation oftariff schedules.  The Ministry of Commerce registered foreign business activities.  The Ministry of
Commerce also participated in border control, fraud repression, in the formulation and
implementation of technical standards, and in the development of policies concerning intellectual
property rights.  The Council for the Development of Cambodia implemented investment regulations,WT/ACC/KHM/21
Page 8
while issues related to industrial and technological development, exploitation of natural resources and
the production and supply of electricity and potable water fell under the competency of the Ministry
of Industry, Mines and Energy.  He confirmed th at provincial and municipal authorities had no
jurisdiction over policies affecting foreign trade, such as in the areas of subsidies, investment,
application of taxes, charges on imports not applied to domestic goods, or quantitative restrictions onimports or exports.  Cambodia confirmed that local authorities will have no such authority in export
processing zones within their jurisdiction.
39. The Ministry of Commerce acted as the focal point for activities related to WTO accession.
The WTO Office of the Ministry had 10 professional staff.  In addition, an Inter-Ministerial Co-
ordinating Committee on WTO Accession, chaire d by the Minister of Commerce, had been
established in September 1997.  The role of this Committee, which counted 15 members at the policy
level and three officials from each of the 23 ministri es and agencies involved in WTO activities at the
working level, was to (i) coordinate policy issues related to WTO accession;  (ii) elaborate guidelines
to implement WTO Agreements;  (iii) prepare the necessary documentation;  (iv) define the
Government's priorities related to foreign trade policies;  (v) ensure coordination among Ministries;
and (vi) report to the Prime Minister on issues related to WTO accession.  In August 2001, his
Government had appointed a working group comprising more than 110 senior government officials toassist in matters related to Cambodia's accession to the WTO.
40. International treaties, conventions and inter-governmental agreements concerning economic,
technical, cultural and defense co-operation were negotiated by the Prime Minister and, after approval
by the National Assembly, ratified and promulgated by the Monarch.  Specifically concerning the
ratification process of Cambodia's Protocol of Ac cession, a package including the Protocol and all
WTO Agreements and legal documents would be submitted by the Royal Government to the National
Assembly and the Senate for adoption.  The package would then be presented to the Monarch for
promulgation, after which it would be published in the Official Journal.  He confirmed that WTO
provisions would prevail over national legislation, with the exception of Cambodia's Constitution, in
case of conflict between domestic legislation and the WTO Agreements.
41. He added that compliance with WTO Agreements required the preparation of many important
pieces of legislation in Cambodia.  He provided  an Agenda for Enacting Laws for WTO Conformity
in document WT/ACC/KHM/10, which was subsequently revised and up-dated on a regular basis (see
Revision 1 of 31 July 2002, Revision 2 of 3 March 2003, and Revision 3 of 17 June 2003).  In this
respect, a Member was concerned about the long period foreseen for the adoption of the Civil
Procedure Code, which underpinned the effective enforcement of other laws.  The representative of
Cambodia replied that the draft Civil Procedure Code would be submitted to the Council of Ministersin the near future.  The most recent version of Cambodia's Agenda for Enacting Laws for WTO
Conformity and Adopting Regulations/Instructions  is reproduced in the Attachment to Annex I.
POLICIES AFFECTING TRADE IN GOODS
Trading rights (the right to import and export)
42. The representative of Cambodia said that the Law on Commercial Regulations and the
Commercial Register of 3 May 1995, as amende d on 18 November 1999, required all commercial
enterprises operating in Cambodia to register with the Ministry of Commerce.  Copies of the
"Instruction Circular on Commercial Registration at the Ministry of Commerce" and the
"Announcement on Commercial Registration", both dated 3 December 1997, were reproduced in
document WT/ACC/KHM/2, Annex 7B.
43. Commercial enterprises could register in the form of sole proprietorships, general partnership,
limited partnership, private limited company, single member private limited company, public limitedWT/ACC/KHM/21
Page 9
company, public institution, State enterprise, or joint venture.  Natural persons per se  could not
engage in import activities as the Law on Commercial Regulations and the Commercial Register
allowed registration of legal entities only.  However, an individual could register, for example, as a
single shareholder limited liability company.
44. A prohibition on companies with less than 51 per cent Cambodian ownership to engage in
import/export activities for the sole purpose of re-selling goods without transformation had been
abolished pursuant to a Declaration of the Ministry of Commerce of 25 January 2000.  He confirmed
that all firms, foreign and domestic, properly registered with the Ministry of Commerce, could engage
in import and export activities of all types of goods except military equipment and narcotic drugs.
Trade in forestry products could only be conducted by licensed concessionaires (domestic or foreign)
according to Article 4, Chapter 2 of Sub-Decree No. 05 of 7 February 2000.  A firm could amend its
registration to include import and export activities by filing an application to amend its Memorandumand Articles of Association to the Ministry of Commerce.  The amended registration would be
deposited at the Office of Commercial Registry at the Ministry.
45. Registration required a company official to appear in person and deposit the required
documentation - including a completed Registration Application Form, the Memorandum and Articles
of Association, a Statement of Conformity, a certifica te of the estate title or lease agreement, and
copies of the identification papers as well as photographs of the company directors and shareholders -
with the Ministry of Commerce.  Applicatio ns which were not supported by the required
documentation would be rejected.  The procedure to enrol in the Commercial Register took about two
weeks.  The registration fee amounted to 260,000 Riels (approximately US$70) for national and
foreign companies.  In addition, companies investing in Cambodia and applying for project approvalfor purposes of securing investment incentives we re required to pay registration fees to the Council
for the Development of Cambodia (CDC) in accordance with the Law on Investment of
4 August 1994.  These fees amounted to US$600 fo r investment projects up to US$1 million and
US$1,200 for investment projects above US$1 million.
46. Some members were concerned that the requirement to provide photographs of the directors
and shareholders of a limited liability company would be unnecessarily burdensome for large
companies with many stockholders, e.g. foreign firms wishing to establish operations in Cambodia.
In reply, the representative of Cambodia said that the same requirements applied to domestic and
foreign firms engaged in trade.  According to Cambodian legislation, a private limited company could
not have more than 30 individual shareholders.  A public limited company needed only to submit
photographs of the members of its board of directors.  The photo requirement was applied for security
reasons, principally to avoid fraud.  He did not believe the requirement created obstacles forcompanies registering in Cambodia.
47. Noting that importation of pharmaceuticals was limited to pharmacists and the importation of
agricultural inputs to agricultural technicians (see the section "Quantitative import restrictions,
including prohibitions, quotas and licensing syst ems" below), a Member asked whether Cambodia
distinguished between the right of importation and the right to distribute such products domestically.This Member sought recognition of the right to import, i.e. to be the importer of record, as a separate
status from that of distribution, and would th erefore welcome steps by Cambodia to simplify
requirements to import, on the understanding that stricter requirements might be maintained for
distributors within Cambodia's market.
48. The representative of Cambodia clarified that among the imported agricultural inputs only
veterinary medicine was reserved for agricultural technicians.  He added that, in practice, importers of
agricultural inputs and pharmaceuticals also distributed the goods within Cambodia, and it would be
difficult to separate the importation and distribution functions in a country such as Cambodia.WT/ACC/KHM/21
Page 10
49. Based on this information, a Member concluded that Cambodia had placed restrictions on
imported pharmaceuticals and veterinary medicines which would not apply to domestic production of
similar products.  Cambodia was therefore requested to amend its laws to distinguish explicitly
between the right to be the importer of record, and the right to distribute.  The registration and
technical requirements currently placed on importers should be transferred to distributors, andCambodia should ensure that these requirements would be applied in a manner that would result in
treatment no less favourable to imports than to similar domestic products.
50. The representative of Cambodia confirmed that it was not the intent of his Government that
the current requirements for importation of pharmaceuticals or of veterinary medicines should
discriminate against imports.  In this regard, he further confirmed that no later than 1 June 2005,
Cambodia would amend its legislation, e.g., th e Law on Drug Management and Prakas No. 82 of
31 March 1999 on "Procedures for Exports and Imports of Pharmaceuticals", so as not to abridge theright to import and to export, and that any registered entity could be the importer or exporter of
record.  He confirmed that from that date, Cambodia would ensure that its laws and regulations
relating to the right to trade in goods and all fees, charges or taxes levied on such rights would be in
full conformity with its WTO obligations, including Articles VIII:I(a), XI:I and III:2 and 4 of the
GATT 1994 and that it would also implement such laws  and regulations in full conformity with these
obligations.  He confirmed in particular that this was recognized as without prejudice to requirements
that might be placed on distributors of domestic and imported products to preserve plant, animal or
human health, life, or safety.  The Working Party took note of these commitments.
1. Import Regulation
Customs tariff
51. The representative of Cambodia said that the Customs and Excise Department had embarked
on a Customs Reform and Modernization Programme aimed at creating a modern customs
administration combining efficient revenue collection and protection at the border with the needs of
the private sector for fast, straightforward and reliable customs services.  Major elements of the
reform programme included strengthening of the lega l framework, restructuring of the customs tariff,
modernization and streamlining of customs procedures, expansion of international relations, effective
enforcement, automated systems and procedures, measures to strengthen the Customs and Excise
Department, better service to the public and trade facilitation.  A summary of the reform strategy was
provided in document WT/ACC/KHM/6, Annex IV.
52. The Law on Import and Export Duties of 15 September 1989, as subsequently modified by
decisions of the Ministry of Economy and Finance, constituted the legal basis for the imposition of
tariffs.  Cambodia's customs tariff was specified at 8 digits.  The tariff nomenclature comprising 6,823tariff lines in 2001 conformed to the 1996 version of the Harmonized System (HS) at the six-digit
level.  All rates were ad valorem .  At present, only MFN rates of duty existed, except for CEPT
(Common Effective Preferential Tariff) products orig inating within ASEAN.  As member of ASEAN,
Cambodia was committed to extend tariff preferences as stipulated in the ASEAN Agreement on a
reciprocal basis.
53. In reforming its tariff structure, Cambodia had reduced the number of tariff bands from 12 to
4 at present (0, 7, 15, and 35 per cent).  The highest tariff rates of 40, 50, 90 and 120 per cent had
been abolished.  Items subject to the maximum applied rate of 35 per cent were listed in document
WT/ACC/KHM/6, Annex III.  The simple average applied rate of duty had amounted to 16.4 per cent
in 2001, and the objective was to achieve an average tariff level below 15 per cent by 2003/04.  WhileCambodia was reducing its import duties, excise taxes were being increased to ensure that the tax
reform would be revenue neutral.WT/ACC/KHM/21
Page 11
Other duties and charges
54. The representative of Cambodia confirmed that other than ordinary customs duties, Cambodia
imposed no duties or charges of any kind within the meaning of Article II:1(b) of the GATT 1994 on
or in connection with importation, except for petrol and diesel (HS codes 2710 00 21, 2710 00 22,
2710 00 23, 2710 00 24, 2710 00 25, 2710 00 26, 2710 00 71, 2710 00 72 and  2710 00 79).  On thesetwo items, his Government was imposing a charge of US$0.02 and US$0.04 per litre, respectively.
He confirmed that these other duties and charges were being transformed and incorporated into a
compound tariff rate.  The representative of Cambodia further confirmed that Cambodia would bind
these charges and all other charges within the meaning of Article II:1(b) of the GATT 1994 at zero, in
its Schedule of Concessions and Commitments on Goods.
55. The representative of Cambodia stated that the application of "other duties and charges" other
than the normal customs duties and fees and charges for services rendered would be in accordancewith WTO provisions from the date of accession.  He further confirmed that Cambodia has bound
"other duties and charges" as defined in Article II:1(b) of the GATT 1994 at zero in its Goods
Schedule.  The Working Party took note of this commitment.
Tariff rate quotas, tariff exemptions
56. The representative of Cambodia said that the Law on Import and Export Duties of 1989,
Article 9.1, allowed importation free of customs duty for (i) temporary imports for re-export;  (ii)
goods in transit;  (iii) personal items of Cambodians having resided abroad;  (iv) imports by
diplomatic missions, for humanitarian or religious purposes, etc.;  and (v) border trade within limits
determined by the Ministry of Finance.  Although the draft Law on Customs did not define or make
reference to the concept of border trade, he confirmed that Cambodia's practice was within themeaning of Article XXIV:3(a) of the GATT 1994.  Tariff exemptions were also accorded on goods
imported in connection with investment projects approved by the Council for the Development of
Cambodia in accordance with the 1994 Law on Investment.  In addition, the Prime Minister had the
authority to order ad hoc exemptions for compelling reasons of national interest, primarily emergency
situations (Article 5 of the draft Law on Customs).  Thus, 120 cars had been imported free of duty forthe members of the National Assembly in 1994, but no such exemptions were currently in force.  All
tariff exemptions were applied on an MFN basis.
57. Noting a statement by the representative of Cambodia that Cambodia did not apply tariff
quotas at present, but might consider the introduction of tariff rate quotas on certain agricultural
imports in the future, some Members emphasized that such measures would complicate Cambodia's
market access negotiations, and would involve complex procedures in establishing proper access
conditions, as well as non-discriminatory and transparent allocation and administration of the tariffquota system.
58. The representative of Cambodia took note of  these comments.  Although Cambodia had not
resorted to tariff rate quotas so far, Cambodia would reserve its right to implement such quotas
depending on the outcome of the accession negotiations.  Cambodia confirmed that it would respect
WTO disciplines on tariff rate quotas.
59. The representative of Cambodia stated that upon accession to the WTO, any tariff exemptions
would only be implemented in conformity with the relevant WTO provisions including Article I of the
GATT 1994 and the TRIMs Agreement.  The Working Party took note of this commitment.WT/ACC/KHM/21
Page 12
Fees and charges for services rendered
60. The representative of Cambodia said that Cambodia applied a fee of 15,000 Riels (nearly
US$4) per import/export declaration.  The fee was levied on imports from all sources, including
Cambodia's preferential trading partners.  The charge corresponded to the cost of printing the customs
declaration form and the time spent by customs officers in processing the declaration.  Some 100customs officials processed approximatel y 6,000 customs declarations every month.
61. Some Members requested that Cambodia review the fee for the provision and processing of
import/export declarations, referring to the public service nature of this function.  In reply, the
representative of Cambodia considered Cambodia's user or processing fees commensurate to the costs
of the services rendered, and thus not in conflict with WTO provisions.
62. The representative of Cambodia stated that all fees and charges for services related to imports
and exports would be operated in conformity with the provisions of the WTO Agreement, inparticular Articles VIII and X of the GATT 1994.  The representative of Cambodia also stated that,
from the date of accession, Cambodia would not apply, introduce or reintroduce any fees and charges
for services rendered that were applied to imports on an ad valorem  basis.  Information regarding the
application and level of such fees and charges, revenues collected and their use, would be provided to
WTO Members on request.  The Working Party took note of these commitments.
Application of internal taxes
63. The representative of Cambodia said that Cambodia levied excise taxes in accordance with
the Law on Taxation of 1997.  Tax rates, which were identical for imported and domestically
produced goods, were applied on the ex-factory price for domestic goods and the tariff inclusive CIF
value of imports.  The excise tax amounted to 10 per cent for soft drinks, beer, wine and spirits,cigarettes and other tobacco products, and petrol and lubricating oil.  For automobiles, buses, trucks,
motorcycles and spare parts the tax ranged from 5 to 110 per cent, as indicated in Table 2.  He added
that Cambodia did not have a domestic automobile manufacturing industry at present.
64. Some Members noted that Cambodia had introduced a tax of 3 per cent, applied solely to
imported alcohol and tobacco products, in late 1998.  Cambodia was requested to bring this tax intoconformity with Article III of the GATT 1994.  The representative of Cambodia replied that the
3 per cent tax in effect on imported alcohol and tobacco products since September 1999 had been
extended to domestically-produced items on 1 January 2002.
65. The representative of Cambodia said that value added tax had replaced the former turnover
and consumption taxes on 1 January 1999 in accordance with the Law on Taxation of 8 January 1997.
VAT was levied at a single rate of 10 per cent on goods and services.  Exports, including international
transportation of passengers and goods, were zero rated.  On imported goods, VAT was applieduniformly on imports from all sources on the CIF value including customs duties and excise taxes (if
applicable).
66. Some Members noted that the value added tax system was being introduced gradually in
Cambodia, and asked what steps Cambodia was taking to bring the system into conformity with the
national treatment provisions of the WTO.  Cambodia was urged to eliminate any discrimination inthe application of the value added tax to domestically-produced and imported products.
67. In reply, the representative of Cambodia provided a descriptive note on the operation of VAT
in document WT/ACC/KHM/18.  At first, the VAT system had been applied only to 1,000 large and
medium taxpayers – based on annual turnover - in the capital Phnom Penh.  The system had
subsequently been extended to additional entities in Phnom Penh as well as taxpayers in five otherWT/ACC/KHM/21
Page 13
provinces.  A further five provinces had been added in 2002, and the number of taxpayers was
increasing rapidly, currently comprising some 2,900 entities.  The Ministry of Economy and Finance
had conducted a survey of taxpayers in all provinces in 2000 and 2001, and the most recent expansion
in coverage included all provinces with taxpayers meeting the VAT threshold (see paragraph 13 for
information on the thresholds).
68. Small taxpayers were not required to pay VAT.  Instead, they were assessed a tax of 2 per
cent on their annual turnover.  The rationale for this dual system was that the administration and
compliance costs of a full-fledged VAT regime would outweigh the expected revenue to be collected
from small taxpayers.  Entities not required to pay VAT could register voluntarily if they considered it
to be in their interest to do so.
69. Certain goods and services were exempt from VAT, notably public postal services;  hospital,
clinic, medical, and dental services, and the sale of medical and dental goods;  transportation ofpassengers by wholly State-owned public transport entities;  insurance and primary financial services;
public-interest non-profit activities;  imported articles for personal use exempt from customs duties;
goods imported by foreign diplomatic and consular missions, international organizations and technical
cooperation agencies of other governments, for offici al use;  and 10 categories of agricultural inputs
and/or "raw agricultural products" such as fertilizer, plant seeds, veterinary medicines, animal feeds,breeding stock, small tractors and spare parts, and miscellaneous agricultural machinery (Prakas
No. 303 MEF/TD of 23 May 2001).  Imported agricultural inputs exempted from VAT are listed in
Table 3.  The Council of Ministers had reaffirmed that VAT on imported and domestically-produced
agricultural products should be identical at a full Cabinet meeting on 20 December 2002.  Since July
2001, the estimated revenue foregone due to the VAT exemptions had amounted to 2 billion Riels inthe second half of 2001 and 1.5 billion Riels in the first five months of 2002.
70. A Member noted that Cambodia's present VAT system appeared to provide a de facto
exemption for certain domestic goods, especially agricultural goods, and thus in practice would seem
to be at odds with the December 2002 Council of Ministers Decision on the equivalence of domestic
and imported goods for the purposes of VAT.
71. The representative of Cambodia confirmed that from 1 January 2003, his Government had
applied the VAT on imported and domestically produced agricultural products equally and in
conformity with Article III of the GATT 1994 and that the exemption provided to certain farmers
from the application of the VAT to their output wa s due to the fact that they did not meet the
minimum income threshold for mandatory application of the VAT, and had the option of the turnover
tax on total sales.  The representative of Cambodia further confirmed that, from the date of accession,
Cambodia would apply its domestic taxes, including those on products listed in Tables 2 and 3 and
paragraphs 63 to 70 in strict compliance with Article III of the GATT 1994 and in a non-
discriminatory manner to imports regardless of country of origin.  The Working Party took note of
this commitment.
Quantitative import restrictions, including prohibitions, quotas and licensing systems
72. The representative of Cambodia said that importation of narcotic drugs and poisons, including
many pesticides, was prohibited.  A list of products banned from importation into Cambodia is
reproduced in Table 4.
73. Initial information on import licensing procedures was provided in document
WT/ACC/KHM/2, Annexes 3 and 8, and revised information in documents WT/ACC/KHM/17,
WT/ACC/KHM/17/Rev.1 and WT/ACC/KHM/17/Rev.2.  He noted that Cambodia applied noquantitative restrictions on imports.  However, a limited licensing system had been established for the
protection of human health, consumer interests, national security, and to protect the environment.WT/ACC/KHM/21
Page 14
Products subject to import licensing are enumerated in Table 5.  He stressed that the system was not
designed to restrict the quantity or value of imports, except for pesticides.  He confirmed that products
not identified in document WT/ACC/KHM/17 and its Revision 1 were free from licensing
requirements.
74. Non-automatic licences were applied to imports of aircraft and parts, ships and boats for
military purposes.  The Government was the only legal importer of arms, military equipment and
related goods in Cambodia.  Upon approval by the Government, the Ministry of Defence and the
Ministry of Interior would be authorized to import such products.  The Ministry of Defence
administered imports of explosives, ammunition, military hardware, and other related products for
military purposes in accordance with Governmental Sub-Decree No. 38 of 30 April 1999 on
Management and Control of the Imports, Production, Distribution and Sale of all kind of Explosives
and Ammunition.  Importation of the same products for security purposes was administered by theMinistry of Interior.  These were the only two Ministries authorized to import military equipment and
related goods.  In practice, the Ministries would not handle all logistical aspects of the procurement,
but would sub-contract a firm or manufacturer to assist in the purchase and shipment of the goods.
75. The Ministry of Agriculture, Forestry and Fisheries (MAFF) issued licenses (authorization
letters) for importation of agricultural inputs, principally pesticides and fertilizer, in accordance withthe Sub-Decree on Standards for and Management of Agricultural Materials of 28 October 1998.
Firms wishing to import should be registered with the Ministry of Commerce and the products should
be registered and authorized by the Ministry of Agriculture, Forestry and Fisheries (MAFF).  At
present, 15 companies were authorized to import agricultural inputs.  Registration was also required
for the products to be imported.  The quantity of pesticides imported by individual companies couldbe restricted due to safety requirements, including appropriate storage facilities, as well as domestic
demand.  The Department of Agronomy and Agri cultural Land Improvement at the MAFF would
estimate the need for pesticides on an annual basis, taking into account factors such as the size of the
cultivated areas, type of crop planted, and seasonal infection ratios.  In the future, Cambodia was
considering either to allow registered goods into warehouses and release for sale or use afterinspection, or to allow for accreditation of pesticides through bilateral agreements with the countries
of origin.  Cambodia was not in a position to undertake risk assessment at present, and would
welcome assistance in developing such capacity.  Fertilizer imports were licenced to minimize the
environmental impact of soil degradation, acidity or salinity.
76. Asked to provide further detail on the import regime applicable to pesticides, in particular
regarding restrictions based on domestic demand, the representative of Cambodia added that local
conditions often led to rapid degradation of pesticide products, and thus expensive and potentiallyenvironmental harmful disposal of such products.  Data on areas under cultivation and pest infestation
levels allowed his authorities to estimate the needs for pesticides in any given crop year.  Import
licences were granted on a first come, first served basis up to the estimated requirements.  The
authorities could decide to authorize additional imports, and all registered importers would be
informed of such decisions.  Fully-stocked individual importers could be denied licenses as atemporary measure until they would have the necessary capacity to store additional products.
Cambodia had no plans to allow petitions for import tolerances, but as a Member of ASEAN
Cambodia would adhere to the maximum residue limits  of ASEAN as well as to FAO standards.  The
current import measures were applied due to Cambodia's limited capacity for safe handling and
storage of pesticides, and could therefore, in his opinion, be justified under Article XX(b) of theGATT 1994.
77. The representative of Cambodia confirmed that, no later than 1 June 2005, Cambodia would
eliminate quantitative restrictions on the importation of fertilizers, pesticides and other agricultural
inputs as described in paragraphs 75 and 76 and establish a WTO-consistent method of registration
and review of imported agricultural chemicals.  Requirements related to the safe storage and domesticWT/ACC/KHM/21
Page 15
distribution of these products would apply only to do mestic distributors or to importers using bonded
storage prior to domestic distribution.  He further confirmed that, in the context of Cambodia's
implementation of the WTO Agreement on Technical Barriers to Trade, that from 1 January 2007
Cambodia would rely on the provisions of that Agreement to regulate domestic and international trade
in these items, and that the commitment contained in paragraph 50 would also apply to requirementsfor registration and licensing fees for importers of agricultural inputs from 1 June 2005.  The Working
Party took note of these commitments.
78. Cambodia had experienced problems with counterfeit pharmaceuticals and drug trafficking,
and permission was accordingly needed for the importation of pharmaceutical products and materials,
vitamins and hormones in accordance with the Law on Drug Management and Prakas No. 82 of
31 March 1999 on "Procedures for Exports and Imports of Pharmaceuticals".  The importer should be
a pharmaceutical company registered at the Ministry of Commerce and authorized by the Ministry ofHealth.  At present, 90 companies were registered as  authorized importers at the Department of Drugs
and Food.  Registration was also required for the products to be imported.  The licensing procedure
for first consignments of pharmaceuticals and vitamins would normally take three weeks due to
laboratory analyses.  Licenses for subsequent consignments could be issued within one week as
further laboratory analysis would not be necessary.  Information on the procedure to be followed was
published in the Official Journal of the Ministry of Health.
79. A Member stated that Cambodia's regulations  could potentially violate the principle of
national treatment and restrict trading rights.  While this Member recognized the need to apply
technical regulations or standards for agricultural inputs and pharmaceuticals, current practices in
Cambodia seemed based on the assumption that there was no domestic production.  This assumptionwas not valid for pharmaceuticals, and might not remain so for fertilizers and pesticides.  Cambodia
was requested to clarify that there would be no requirement for an importer of record to establish a
commercial presence in Cambodia, or to negotiate the right to import.
80. Responding to concerns that the registration regime for importers of agricultural inputs and
pharmaceutical products and materials might restrict imports indirectly or constitute a non-tariffmeasure, the representative of Cambodia underlined that Cambodia's legislation allowed any physical
or juridical person to seek registration, and registration would be granted subject to the fulfilment of
objective criteria related to safety, availability of necessary facilities or staff qualifications.  The
relatively low number of registered importers of agricultural inputs and pharmaceutical products and
materials reflected the limited size of the domestic market.  He noted, for example, that among the 90
firms authorized to import pharmaceutical products, only 30 of them had actually engaged in import
trade in 2002.  As noted in document WT/ACC/KH M/17/Rev.1, Cambodia required a Certificate of
Good Manufacturing Practice (GMP), issued in acco rdance with guidelines established by the WHO.
Each country could issue its own certificate to local manufacturers, but the evaluation criteria should
follow the WHO Standard Guidelines for GMP.  In urgent cases, import licenses could be granted
within three days.
81. Import licences issued by the Ministry of Health were valid for six months and could be
extended upon request.  Licences for agricultural inputs were valid for one year and were also
extendable.  These import licences were issued free of charge, but each pharmaceutical product
registered with the Ministry of Health was subject to a one-time fee of US$200 (Prakas of the
Ministry of Health No. 254 of 13 June 1996), and each agricultural input registered at the MAFF was
subject to a registration fee of US$30.  Other import licences were issued against a fee of 15,000 Rielsand were valid for three months.  The validity of these licences could, upon request, be extended for
an additional two months.  A complete licence application would normally be processed within seven
days.  Licensing decisions could be appealed th rough the judicial and administrative procedures
established in Cambodia.WT/ACC/KHM/21
Page 16
82. The representative of Cambodia confirmed that from the date of accession, his Government
would not introduce, re-introduce or apply other non-tariff measures such as licensing, quotas,
prohibitions, bans and other restrictions having equiva lent effect that could not be justified under the
provisions of the WTO Agreements.  If balance- of-payment measures were necessary, Cambodia
would impose them in a manner consistent with the relevant WTO provisions, including Article XVIIIof the GATT and the Understanding on Balance-of-Payments Provisions of the GATT 1994.  He
further confirmed that any discretionary authority permitting the Government of Cambodia to suspend
imports or licensing requirements that could suspend, ban, or otherwise restrict the quantity of trade
would be applied from the date of accession in conformity with the requirements of the WTO.  The
Working Party took note of these commitments.
Customs valuation
83. Some Members noted that Cambodia's present customs valuation regime, based on the Law
on Customs Duty and Tax on Imports and Exports of Goods of 1989, was not in compliance with the
Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994
(Customs Valuation Agreement) and that Cambodia in tended to address the deficiencies in a new Law
on Customs and its implementing regulations.  In this connection, these Members reminded Cambodia
about the provisions of the Agreement regardin g valuation hierarchy, prohibited methods of
appraisement, confidentiality, right of appeal, transparency, sureties for the release of merchandise,
and the adoption of the Interpretative Notes.  Among the problems mentioned by Members were
duplication of work by customs agencies, customs re d tape, delays in the processing of documents,
and over-valuations or inconsistent valuations.  Some Members agreed that certain aspects of the
Agreement could be implemented over time, but hoped that the length and breadth of any transitionalarrangements would be limited.  In their view, critical provisions central to the issue of market access
and the maintenance of a stable, predictable trade regime should be in place at the time of Cambodia's
accession to the WTO.  Cambodia should not expand the use of minimum prices beyond the products
currently listed in its legislation, and the prohibited methods of valuation should not otherwise be
used.
84. In reply, the representative of Cambodia said that the new draft Law on Customs had been
approved by the Council of Ministers and was planned for adoption by the National Assembly by
July 2004.  Regulations would be developed upon completion of the drafting of the new Law,
including regulations to implement Articles 17-24 of the Agreement, as well as the Interpretative
Notes in Annex I of the Agreement and would be made available to WTO Members for review.  He
emphasized that Cambodia would seek a transition period.  An Action Plan for the Implementation of
the Customs Valuation Agreement was provided in document WT/ACC/KHM/13, and a revisedaction plan in document WT/ACC/KHM/13/Rev.1.
85. Implementation of the hierarchy of valuation t echniques implied that Cambodia's present use
of minimum values would need to be phased out and replaced by the transaction value provisions of
the Agreement.  Items currently subject to mini mum customs values are listed in Table 6.  His
Government considered that a move to transaction value at the time of Cambodia's accession to theWTO would pose major risks to government revenue.  He therefore proposed that minimum customs
values be phased out gradually over a period of five years, with full compliance with the Customs
Valuation Agreement to be achieved by the end of 2008.  The challenges facing the customs
administration at present included a low rate of  voluntary compliance by importers, lack of sound
accounting systems and record keeping, and the limited capacity of the Customs and ExciseDepartment to administer transaction valuation provisions.  Time would be needed to educate
importers in the new valuation provisions, proper customs record keeping and accounting systems, as
well as for Customs to develop its internal administrative procedures, such as post-clearance audit,
and to educate staff.  The Customs and Excise Department would seek technical assistance in
preparing and implementing the transition plan.WT/ACC/KHM/21
Page 17
86. Some Members noted that Cambodia appeared also to be using data on reference prices
provided by a Preshipment Inspection (PSI) firm.  The Customs Valuation Agreement strictly
prohibited such practice, and Cambodia should eliminate it prior to the date of accession.
87. The representative of Cambodia confirmed that Cambodia was using a reference database, but
only as a guide for appraising valuation declarations.  The database would not be used to establishactual transaction values, but only as a reference for establishing the reasonableness of values and for
risk assessment purposes, in compliance with the Agreement.  The representative of Cambodia
confirmed that, aside from the products listed in Table 6 for which Cambodia used minimum values,
Cambodia would not make use of reference prices to establish actual transaction values.
88. Concerning the transparency of legislation, the representative of Cambodia noted that
Article 93 of Cambodia's Constitution required laws to be published in the Official Gazette and
brought to the knowledge and attention of the population before entering into force.  Legal textsrelated to customs matters were published in the Official Gazette for the general public on a non-
discriminatory and transparent basis.  In addi tion, the Customs and Excise Department frequently
provided legislation and regulations to the 30-50 largest importers to up-date them on legal
developments.  He expected the new Law on Customs would receive extensive publicity through
seminars, publications, and other information sources such as the departmental web-page.
89. The representative of Cambodia thanked members of the Working Party for their offers of
technical assistance in this area, and for their recognition that more would be required.  Cambodia was
requesting a transitional period to complete the phasing-out of minimum customs value and
administrative values listed in Table 6, and use of the valuation hierarchy stipulated in Article 21 of
the draft Law on Customs.  Provisions in the Cust oms Valuation Agreement relating to transparency,
confidentiality, right of appeal, sureties for the release of merchandise, and the interpretative notes
relevant to these issues, would be implemented by the time of Cambodia's accession to the WTO.
90. The Government of Cambodia requested that the Working Party grant a transitional period
from the date of its accession of approximately five years, until 1 January 2009, for certain provisions
of the WTO Agreement on Customs Valuation, to allow Cambodia to obtain and utilize technical
assistance to assist in the full implementation of  the obligations of the Agreement.  During the
transition, for the imported goods listed in Table 7, Cambodia will not be required to observe the
provisions of Article 7:2(f), allowing for the application of minimum customs values to these imports.
If such a transitional period were granted, Cambodia’s deviations from the provisions of the
Agreement would be strictly limited to these measures, and that all other provisions of the Agreement
would be fully implemented for all imports, including those covered by the transition.
91. During this period, Cambodia would ensure that its regulations under current legislation in
place and additional legislation implemented during the transition concerning customs valuation
would be applied on a non-discriminatory basis to all imports.  In particular, the practice of varying
the method of valuation for imports of automobiles based on national origin would be eliminated from
the date of accession, and Cambodia would only apply customs duties on imported goods on a non-
discriminatory basis from all WTO Member countries.  Any changes made in its laws, regulations andpractice during the transition period would not resu lt in a lesser degree of consistency with the
provisions of the Agreement on Customs Valuation than existed on the date of accession.  Cambodia
would participate in the work of the Committee on Customs Valuation.  He added that Cambodia
would seek out all available technical assistance to ensure that its capacity to fully implement the
Agreement upon expiration of the transition period is assured.
92. In response to requests from delegations for more specificity, the representative of Cambodia
presented an Action Plan setting out details of the steps that still remained to be taken in order to
achieve this objective and a timetable for each step (Table 7).WT/ACC/KHM/21
Page 18
Table 7:  Action Plan for Implementation of the Agreement on Customs Valuation
Action Deadline
WP review of Draft Law on Customs Prior to accession
Creation of a WTO VA implementation project team and preparation of a departmental
plan to implement the VA transition plan.No later than
December 2003
- If decision to retain PSI mechanism, new contract will be in compliance with WTO
Valuation Agreement rules.No later than
1 January 2004
Parliamentary consideration and enactment of legislation for WTO-consistent valuationrules.No later than
1 July 2004
Transaction valuation to apply to:
1. imports by large multinational and Cambodian companies having a well established
compliance record with the Customs and Excise Department and being considered
low risk importers.
2. imports by firms other than large, multinational and Cambodian companies which
import goods that are identical or similar to goods imported by these large firms,based on their compliance records.
3. imports by investment companies and other importers entitled to exemption (NGOs,
foreign missions, etc).No later than
1 January 2005
Technical training and preparation of de partmental valuation technical manuals
Launching of Post Clearance Audit program
Launching of automated customs processing system project.No later than
1 January 2006
Transaction valuation to apply to:
4. imports, by selected low risk importers and sectors, of low value goods subject to
relatively low rates of duty and representing limited revenue risk.
5. imports of identical or similar goods by other importersNo later than
1 January 2007
Transaction valuation to apply to:
6. remaining imports of low value goods subject to relatively low rates of duty.No later than
1 January 2008
Transaction valuation to apply to:
7. all imports, including highly taxed and sensitive goodsNo later than
1 January 2009
Full implementation of the Agreement on the Implementation of Article VII of the GATT1994No later than
1 January 2009
93. The representative of Cambodia stated that legislation on the valuation of imports for customs
and taxation purposes conforming to the requirements of the Agreement on Customs Valuation would
be enacted by 1 July 2004.  Cambodia would progressively implement the Agreement on Customs
Valuation in accordance with the action plan in Tabl e 7, and with the understanding that during this
period the scope of implementation of other aspects of the Agreement, as described in paragraphs 89,
90 and 91 would be applied by Cambodia.  Full implementation will start from 1 January 2009.  The
Working Party took note of this commitment.
Rules of origin
94. Noting initial statements by the representative of Cambodia that Cambodia had not yet
established regulations on rules of origin, but intended to introduce preferential rules of origin as
required by its membership in ASEAN, a Member sought a commitment that upon accession
Cambodia would apply its laws and regulations on rules of origin in conformity with the provisions of
the WTO Agreement on Rules of Origin.  This Me mber also sought confirmation that Cambodia’s
laws would 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 customs authority would provideWT/ACC/KHM/21
Page 19
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 would be provided, and that any request for
such an assessment would be accepted even before trade in the goods concerned began.
95. The representative of Cambodia said that, for non-preferential trade, importers were required
to indicate a product's origin in the import declaration.  The requirement was applied for statisticalpurposes only.  He added that Cambodia would take into account the provisions of the WTO
Agreement on Rules of Origin when developing the legislation in this area.  Provisions for the
administration of rules of origin would be included in the new Law on Customs, which he expected
Cambodia to implement during 2004.  The Ministry of Commerce was responsible for issuing
certificates of origin.
96. The representative of Cambodia confirmed that his Government intended to comply fully
with the provisions of the WTO Agreement on Rules of Origin in the application of preferential andnon-preferential rules of origin and would be able  to do so after enactment of the new Customs Law
and its implementing regulations, no later than 1 January 2005.  In particular, the requirements of
Article 2(h) and Annex II paragraph 3(d) of the Agreement, which require provision, upon request, of
an assessment of the origin of the import and outline the terms under which it will be provided, would
be established in Cambodia’s Law on Customs from the date of its promulgation, or if necessary, by
government decree, no later than 1 January 2004.  The Working Party took note of this commitment.
Other customs formalities
97. The representative of Cambodia confirmed that Cambodia did not require authentication of
import documentation by consular officials or other institutions in the country of export.  He added
that the Customs and Excise Department was reviewing all customs clearance procedures andprocesses with a view to simplification and modernization, and the application of risk management
techniques.  Sub-Decree No. 64, issued in mid-2001, c ontained measures to rationalise the presence of
government agencies at border checkpoints.   The Customs and Excise Department and
CAMCONTROL (Ministry of Commerce) were lead agencies in the clearance process, while other
governmental agencies participated in joint committees with clear mandates and responsibilities at allborder checkpoints.  He expected automation of the customs clearance process to result in further
efficiency gains, and the new Law on Customs would provide the legislative basis for this initiative.
98. Concerning efforts to combat smuggling – an issue raised by several Members as competition
from smuggled goods was impeding regular market access – the representative of Cambodia said that
Government Order No. 02 issued by the Council of Ministers on 19 December 2001 had launched a
major anti-smuggling initiative.  The Government Order directed the military, the police and local
authorities to co-operate with and assist the Customs and Excise Department in anti-smugglingoperations.  An Inter-Ministerial Commission had been set up under the direction of the Minister of
Economy and Finance to plan, co-ordinate, and to monitor this initiative.  At the same time, steps had
been taken to strengthen the Customs and Excise Department and to improve its level of integrity.
The anti-smuggling initiative provided generous fina ncial rewards to customs officials participating in
successful anti-smuggling operations.  Cambodia was also seeking technical assistance to equipenforcement teams with appropriate tools and facilities.
99. The representative of Cambodia confirmed that in order to address concerns about smuggling
and other customs administration issues brought to its attention, his Government was in the process of
establishing a dispute settlement mechanism within the Cambodian Customs Service to accept and act
upon complaints about customs practices from traders and governments.  This mechanism wasauthorized in the new Customs Law and would be established prior to 1 January 2005.  The Working
Party took note of this commitment.WT/ACC/KHM/21
Page 20
Preshipment inspection
100. The representative of Cambodia said that his Government had signed a contract with a
preshipment inspection firm in 1995.  A new contract had entered into force in October 2000.  The
contract, valid for two years plus a one-year extension, would be in effect until October 2003.  The
regime was regulated in accordance with Prakas No. 599 SHV.PRK of 31 August 2000 on "theImplementation of Pre-shipment Inspection Services".   The current contract emphasized the provision
of training and technical assistance to the Customs and Excise Department to build expertise,
technical skills and know-how, thereby allowing pr eshipment inspection to be phased out during a
maximum period of three years.
101. The present preshipment inspection contract applied to consignments valued at US$4,000 or
more (FOB).  Goods worth less than US$4,000 were valued by the Cambodian Customs and Excise
Department (some remote customs checkpoints were authorized to make valuation decisions forimports up to US$1,200).  Exempt from preshipment inspection were precious stones and precious
metals; objects of art;  explosives and pyrotechnic products;  ammunition, weapons and implements of
war;  live animals;  current newspapers and periodicals;  household and personal effects;  parcel post
or commercial samples;  gifts from foreign governments or international organizations to foundations,
charities and recognized humanitarian organizations;  gifts and supplies to diplomatic and consularmissions and to agencies related to any United Nations Organization imported for their own needs;
grants in kind;  goods imported for government use under government order;  scrap metals;
cigarettes;  and temporarily admitted goods (inward processing for export).
102. The preshipment inspection firm verified the information to be used by Customs such as
quantity, quality, value, tariff classification and duties and taxes payable.  Valuations would be basedon the principle of Fair Market Price until the entry into force of the new Law on Customs.  From then
on, the preshipment inspection firm would provide valuation opinions based upon procedures
consistent with WTO requirements.  The fee for preshipment inspection amounted to 0.80 per cent of
the FOB value of the inspected goods, except for bulk petroleum products (US$0.30 per metric ton).
Importers failing to secure preshipment inspection, and thus necessitating goods to be inspected bycustoms officials at the border checking point, incurred a penalty equal to 7 per cent of the CIF value
of the imported goods.  A Dispute Settlement Working Group had been established to resolve
promptly claims or disputes arising from the implementation of preshipment inspection.  He noted
that while the Dispute Settlement Working Group had been in operation since early 2001, importers
had yet to bring formal cases to it for resolution.  Importers tended to raise their concerns with either
the Customs and Excise Department or the pres hipment inspection company who would then bring
the matter to the Group.  Steps would be taken to encourage importers to make formal representationsto the Working Group.  He added that Article 24 of the draft Law on Customs provided for appeals
against customs decisions, first to the Customs and Excise Department, next to a Customs Tariff
Committee, and finally to the court.  The Committee, which had been established specifically to
resolve cases where importers were not in agreement with the findings of the preshipment inspection
firm regarding the tariff classification of goods or valuations, was fully operational.  Under the newLaw on Customs, the Customs Tariff Committee would have a mandate to hear appeals against any
decision by Customs.
103. Some Members considered the 0.8 per cent ad valorem  charge for preshipment inspection a
violation of Article VIII of the GATT as the fee was not related to the approximate cost of the
services rendered.  The representative of Cambodia replied that upon expiration of the presentcontract, a new or modified contract on preshipment inspection would stipulate compliance with
GATT Article VIII by requiring the preshipment inspection fee to be commensurate with the service
rendered and not the value of the goods inspected.  A full Ministerial Cabinet meeting had
reconfirmed a decision to this effect on 20 December 2002.WT/ACC/KHM/21
Page 21
104. In addition, a Member pointed out that the seven per cent penalty imposed on non-inspected
goods would be in contravention of GATT Article VIII paragraph 3.  The representative of Cambodia
held the view that Article VIII of the GATT 1994 dealt only with "penalties for minor breaches of
customs regulations or procedural requirements", while failure to comply with mandatory
preshipment inspection would constitute a substantial breach of the legal requirement laid down in thePrakas of the Ministry of Economy and Finance on preshipment inspection of imported products.  He
stressed that penalties discouraged duty evasion, and were necessary to protect government revenue
and the competitive position of compliant importers.  Notwithstanding this explanation, one Member
maintained that such a penalty was disproportionate, constituted a non-tariff barrier to importation,
and should be amended to be made less onerous and to meet the requirements of GATT Articles VIII
and XI.
105. The representative of Cambodia confirmed that from the date of accession his Government
would take full responsibility to ensure that the operations of the preshipment inspection companies, if
retained by Cambodia meet the requirements of the WTO Agreements, including the establishment of
charges and fees consistent with Article VIII of the GATT 1994, due process and transparency
requirements of the WTO Agreements, in particular Article X of the GATT 1994, and the provisions
of the Agreement on the Implementation of Article VII of the GATT 1994 and the Agreement onPreshipment Inspection.  He further confirmed that Cambodia’s pre-shipment inspection regime
would be temporary and would only operate until such time as the Customs and Excise Department
was able to carry out the functions presently performed by pre-shipment inspection service providers.
The Working Party took note of these commitments.
Anti-dumping, countervailing duties, safeguard regimes
106. The representative of Cambodia said that Cambodia had not yet developed any trade remedy
legislation.  According to Cambodia's legislation agenda, the law on anti-dumping and countervailing
measures and the law on safeguard measures were not expected to be approved until the second half
of 2004.  He added that Cambodia would apply sa feguard, anti-dumping or countervailing measures
consistent with the WTO Agreements, including their procedural aspects, as a Member of the WTO.
107. Appreciating these assurances, some Members requested that Cambodia would make a
commitment not to apply anti-dumping, countervailing or safeguard measures without first
implementing appropriate laws and notifying to the WTO legislation covering such measures
consistent with WTO Agreements on the Implementation of Article VI of the General Agreement on
Tariffs and Trade 1994, on Subsidies and Countervailing Measures, and on Safeguards.  These
Members invited Cambodia to submit draft legislation, if available, to the Working Party for review.
108. The representative of Cambodia confirmed that Cambodia would not apply any anti-dumping,
countervailing or safeguard measure until it had notified and implemented appropriate laws and
regulations in conformity with the provisions of the WTO Agreements on the Implementation of
Article VI, on Subsidies and Countervailing Measures, and on Safeguards.  In the elaboration of any
legislation concerning such anti-dumping, count ervailing and safeguard measures Cambodia would
ensure their full conformity with the relevant WTO provisions, including Articles VI and XIX of theGATT 1994 and the Agreements on the Implementation of Article VI, the Agreement on Subsidies
and Countervailing Measures and the Agreement on Safeguards.  After such legislation was
implemented, Cambodia would also only apply any anti-dumping duties, countervailing duties and
safeguard measures in full conformity with the relevant WTO provisions.  The Working Party took
note of these commitments.WT/ACC/KHM/21
Page 22
2. Export regulation
Customs tariffs, fees and charges for services rendered, application of internal taxes to exports
109. The representative of Cambodia said that Cambodia levied export taxes on certain
unprocessed raw materials and products to encourage local processing, encourage exports of finished
products and to protect human health.  The products su bject to export taxes are enumerated in Table 8.
Responding to requests from some Members that Cambodia abolish all export duties upon accession,
the representative of Cambodia said that export duties were - to his knowledge - permitted under
WTO rules, subject to the disciplines of Article I of the GATT.  Cambodia's export duties were
applied on an MFN basis and hence its ASEAN partners were not exempt from these taxes.  Export
taxes had accounted for approximately two per cent of the customs revenue collected by the Customs
and Excise Department in 2000.
110. A Member noted that Article XXIV of the GATT 1994 stipulated that duties between FTA
partners should be eliminated for both imports and exports.  Under these circumstances, Cambodia
should indicate the reason for the exemption and how Cambodia intended to bring this measure into
conformity with this WTO provision.  The representative of Cambodia noted that the ASEAN Free
Trade Area (AFTA) had been notified to the WTO under the Enabling Clause.
111. The representative of Cambodia confirmed that the registration requirements for exports were
the same as for imports, and that the 15,000 Riels fee applied to each import/export declaration
covered the cost of printing of the customs declaration form and the time spent by customs officers in
processing the declaration.  Preshipment inspection of exported products was effected by
CAMCONTROL, a body under the Ministry of Comm erce.  CAMCONTROL inspected all exports
without exception.
Export restrictions
112. Some Members noted that Cambodia maintained export restrictions on several products.
Cambodia was reminded that a WTO Member could only apply export restrictions under tightly
defined conditions, and it was not evident that Cambodia's restrictions met these requirements.
Specifically, the export licensing restrictions on rice and logs would appear to violate Article XI of theGATT 1994, as these seemed to be applied for economic rather than conservation reasons.  Cambodia
was asked to explain the parallel restrictions applied to domestic production, and outline how it
intended to replace the current measures with WTO-consistent instruments.
113. The representative of Cambodia replied that Cambodia generally did not restrict exports,
except for rice;  round logs, unprocessed timber and forestry products;  antiques more than 100 years
old;  narcotic drugs and poisons;  weapons, explosives and ammunition;  and vehicles and machinery
for military purposes (see Table 9).  He added that the restrictions on rice exports had been lifted on26 July 2001 pursuant to Prakas-Announcement No. 2290 MoC/M2001 of the Ministry of Commerce.
However, his Government would maintain the right to  reintroduce restrictive measures in the future if
necessary to prevent or relieve critical shortages of foodstuffs, as provided for in Article XI:2(a) of the
GATT 1994.
114. As for the export restrictions on forestry products, his Government had issued a
Governmental Prakas on Management Measures to  Eliminate the Forestry Anarchy No. 01 PROK on
25 January 1999 and a Sub-Decree on Forestry Conc ession Management No. 05 on 7 February 2000.
Using the authority provided by the Sub-D ecree on Forestry Concession Management, his
Government had suspended all cutting of logs by forestry concession companies.  The Government
would not authorize the resumption of cutting until these companies had submitted SustainableForestry Management Plans (SFMP) and Environm ental and Social Impact Assessments (ESIA).WT/ACC/KHM/21
Page 23
These plans and assessments would be evaluated by the Department of Forestry and Wildlife of the
Ministry of Agriculture, by the public - in particular the local communities affected by forest
management - and international experts.  The evaluation of the SFDPs and the ESIAs was presently
underway.  His Government had granted no au thorization for forestry exploitation since
1 January 2002.  Exportation of round and sawn logs was prohibited, and Government DecisionNo. 17 of 29 April 1997 had established a list of wood products authorized for exportation and
detailed requirements, including an obligation for the exporter to obtain a special concession to
exploit forest resources from the Ministry of Agriculture, access to the export quota established by the
Government, as well as a non-automatic export licence issued by the Ministry of Commerce.  The
Decision also identified specific border crossing points through which wood products could be legally
exported.  In his view, the export licensing of wood products was applied in conjunction with parallel
restrictions on domestic production, aimed at preserving exhaustible natural resources as foreseenunder Article XX(g) of the GATT 1994.
115. The representative of Cambodia stated that, from the date of accession, Cambodia would
ensure that it applied its laws and regulations governing export measures and would act in conformity
with the relevant provisions of the WTO, including Articles I and XI of the GATT 1994 and the
Agreement on Subsidies and Countervailing Measures.  The Working Party took note of thiscommitment.
Export subsidies
116. The representative of Cambodia said that Cambodia had not yet identified policies or
measures relating to export financing or expo rt support.  On 28 November 1997, the Ministry of
Commerce had issued Declaration No. 343 on the organization and functioning of its ExportPromotion Division, pursuant to Government sub- Decree No. 54 on the Organization and Functioning
of the Ministry of Commerce of 22 September 1997.  The Division was expected to engage in general
promotion activities such as assisting the private sector in collecting information on markets overseas,
identify potential export opportunities, and participate in organizing trade fairs.  As for export
incentives, he noted that Article 14 of the Law on Investment of 4 August 1994 stipulated
100 per cent import duty exemption on construction materials, means of production, equipment,
intermediate goods, raw materials and spare parts used by an "export-oriented project with a
minimum of 80 per cent of the production set apart for exports".  As a basic principle, all approved
projects were eligible for these duty exemptions.
117. Several Members noted that incentives accorded under the Law on Investment were
contingent upon export performance.  Article 3 of the WTO Agreement on Subsidies and
Countervailing Measures prohibited the use of such subsidies, and these Members accordingly askedCambodia to indicate how it intended to eliminate prohibited export subsidies from its trade regime.
In their view, any request for a transition for Cambodia should involve a detailed commitment to
eliminate WTO-inconsistent practices.  Cambodia was reminded that, although LDCs might be
entitled to retain such subsidies, the measures could still be actionable under the Agreement on
Subsidies and Countervailing Measures, which would be detrimental to the predictability andtransparency sought by investors and buyers.
118. The representative of Cambodia considered the import duty exemption for export-oriented
projects analogous to the exemption referred to in Article 1 (note 1) and paragraph (h) of Annex I of
the Agreement on Subsidies and Countervailing Meas ures.  He acknowledged that a duty drawback
scheme would be a better way to address this issu e, but Cambodia lacked the administrative resources
to implement such a scheme properly at present.  In any case, he considered least-developed countries
exempt from the provisions of Article 3.1(a) by virtue of Article 27.2 of the Agreement on Subsidies
and Countervailing Measures.WT/ACC/KHM/21
Page 24
119. Some Members considered the existing system of remission of import fees and waiver of duty
for certain goods used by certain investors to be highly complex, lacking in transparency and prone to
abuse, and therefore encouraged Cambodia to implem ent a duty drawback scheme consistent with the
Agreement on Subsidies and Countervailing Measures.  Pending the implementation of a functioning
duty drawback programme limiting rebates to the amount of tariff and tax incorporated in theexported product, the current programmes would need to be notified as subsidies as they did not
appear to qualify as valid duty drawback schemes.
120. The representative of Cambodia confirmed that any subsidy programmes provided by his
Government after accession would be administered in conformity with the Agreement on Subsidies
and Countervailing Measures, including Article 27, and that all necessary information on Cambodia’s
export subsidies and other notifiable programmes would be notified to the Committee on Subsidies
and Countervailing Measures according to Article 25 of the Agreement upon entry into force ofCambodia’s Protocol of Accession.  He also c onfirmed that Cambodia would either eliminate the
existing system of remission of import fees and waiver of duty for certain goods used by certain
investors or establish a functioning duty drawback system consistent with WTO provisions, through
amendment of the Law on Investment, as necessary, by the end of 2013.  The Working Party took
note of these commitments.
3. Internal policies affecting foreign trade in goods
Industrial policy, including subsidies
121. The representative of Cambodia said that the main objective of Cambodia's industrial policy
was to stimulate economic development by enhancing access to international markets and
strengthening the industrial base.  Efforts focused on building up light industries and developing agro-manufacturing and food processing enterprises to sustain the agricultural sector.  Measures had been
taken to improve infrastructure for transportation and communication, encourage private and foreign
direct investment through the adoption of an ap propriate legal framework and the privatization of
State-owned enterprises, and to promote the developmen t of industrial zones.  Particular attention was
also given to the training of industry workers.  The establishment of a Petroleum Training Instituteand of a Training Institute for Mines and Geology was under consideration.  The Ministry responsible
for the development and implementation of Cambodia's industrial policy was the Ministry of Industry,
Mines and Energy.  He confirmed that Cambodia di d not grant any subsidies within the framework of
its industrial policy.
122. The representative of Cambodia stated that any subsidy programmes would be administered
in line with the Agreement on Subsidies and Countervailing Measures and that any such programmes
would be notified to the Committee on Subsidies and Countervailing Measures upon Cambodia’saccession to the WTO.  The Working Party took note of this commitment.
Technical barriers to trade, sanitary and phytosanitary measures
(a) Standards and certification
123. The representative of Cambodia said that Cambodia's standardization system was at an early
stage of development.  He informed the Working Party that Cambodia was seeking technicalassistance to develop its system.  A completed Checklist of TBT Requirements and Implementation
by the Kingdom of Cambodia was provided in document WT/ACC/KHM/8.  The current system was
largely voluntary, but mandatory standards were applied to some products when deemed necessary to
protect national security, prevent deceptive practices or to preserve human, animal, and plant life or
health.WT/ACC/KHM/21
Page 25
124. Some Members reminded Cambodia that the Agreement on Technical Barriers to Trade (TBT
Agreement) did not oblige Cambodia to establish standards, technical regulations or conformity
assessment procedures.  However, the provisions of the Agreement applied when such measures were
being developed and applied (enforced).  The Agreement established fundamental rules and
procedures regarding the development, adoption, and application of voluntary standards, technicalregulations, and the procedures used to determine whether a particular product met such standards
(conformity assessment).  Accordingly, it was impe rative for governments to establish a coordinated
approach to the development, adoption and application of standards, technical regulations and
conformity assessment procedures to ensure that all ministries, agencies, and private bodies involved
in these activities be aware of the obligations and abide by them on an ongoing basis.  Issues of
particular interest to Members included the use of  international standards, recommendations or guides
in the elaboration of standards, technical regulations or certification in Cambodia;  work to harmonizenational standards with international standards;  mechanisms for publication and dissemination of
draft legislation and standards for public comment prio r to their entry into force;  the establishment of
a TBT Inquiry Point;  the inspection process for imported versus domestically-produced goods;
recognition of equivalence of technical regulations and conformity assessment procedures of other
countries, and recognition of conformity assessment procedures carried out by appropriatelyaccredited testing laboratories in the country of manufacture;  and Cambodia's participation in
multilateral or bilateral standards-related agreements or mutual recognition agreements or
arrangements.
125. The representative of Cambodia replied that the Standards Office in the Technical
Department of the Ministry of Industry, Mines a nd Energy was responsible for current work related to
standardization and certification.  Sub-Decree on Industrial Standards No. 42/ANK/BK of
15 May 2001 provided the basic rules and procedures for adopting new standards, technical
regulations and conformity assessment procedures.  He expected a Sub-Decree on Metrology to be
adopted during 2003.  A Law on Industrial Standards of Cambodia was in preparation and slated for
promulgation in the first half of 2004.  The new Law would be complemented by a Sub-Decree and
implementing regulations.  This legislation had been provided to the Working Party for review.
126. The new Law foresaw the creation of a Depart ment of Industrial Standards of Cambodia
(ISC) within the Ministry of Industry, Mines and Energy.  He confirmed that the ISC had been
established in 2002 through sub-Decree XII of the Council of Ministers.  The ISC would serve as
Cambodia's TBT Inquiry Point, responsible for identifying and providing notifications to the WTO
Secretariat under the TBT Agreement.  The ISC would publish a regular Bulletin or Gazette which
would carry notices of proposed technical regulations and conformity assessment procedures.  Theperiod for public comment on draft standards would be extended to 60 days, against the 30 days
(amended standards) and 45 days (new standards) specified in existing legislation.  A draft Law to this
effect was in preparation.
127. Cambodia had been a member of the International Organization for Standardization (ISO)
since 1 January 1995 and had ratified the ASEAN Framework Agreement on Mutual RecognitionArrangements.  Imported goods were subject to the same inspection process as domestically-produced
goods, and Cambodia would extend any Conformity Assessment Agreements, in particular those
foreseen under the ASEAN, to all Members of the WTO.  Cambodia recognized certificates from
third countries' certification bodies provided that these bodies had received formal accreditation from
international or regional accreditation bodies, or were signatories to a mutual recognitionarrangement.  In the case of pharmaceutical products, laboratory testing in Cambodia was required
prior to registration to check the conformity of the samples.
128. Completed tasks, planned activities and related assistance needed during the period 1999-
2006 was detailed in Cambodia's Action Plan for the Implementation of the TBT Agreement,
circulated in document WT/ACC/KHM/14, and subsequently revised in documentWT/ACC/KHM/21
Page 26
WT/ACC/KHM/14/Rev.1.  The Action Plan is summarized in Table 10.  Having reviewed
Cambodia's Action Plan, some Members questioned Cambodia's need for a two-year period to
readjust technical regulations, standards, etc. as good regulatory practice, outlined in Article 2.3 of the
Agreement on Technical Barriers to Trade, required the appropriateness and effectiveness of
particular standards and technical regulations to be reviewed on an ongoing basis.  Cambodia shouldtake immediate steps to fulfil the transparency requirements of the Agreement. Cambodia was
encouraged to notify WTO Members of proposed regulations prior to adoption, and carefully consider
Members' technical comments on proposed regulations before finalizing them.  Noting Cambodia's
requests for technical assistance, some Members stressed that Cambodia should not make
implementation of the TBT Agreement contingent on the provision of future technical assistance.
129. The Government of Cambodia requested that the Working Party grant a transitional period
from the date of its accession until 1 January 2007 for implementation of the WTO Agreement onTechnical Barriers to Trade, to allow Cambodia to obtain and utilize technical assistance to fully
implement the obligations of the Agreement.  During this period, existing measures would be applied
on a non-discriminatory basis, i.e. providing for na tional treatment and MFN treatment to all imports.
Measures in place already consistent with the prov isions of the Agreement on Technical Barriers to
Trade would not be subject to transitions, and Cambodia would ensure that any changes made in itslaws, regulations and practice during the transition period would not result in a lesser degree of
consistency with the provisions of the Agreement than existed on the date of accession.  Standards,
technical regulations, and conformity assessment procedures adopted during this period would be
developed in conformity with the provisions of the Agreement.  Cambodia would fully participate in
the work of the Committee on Technical Barriers to Trade.  He added that Cambodia would seek outall available technical assistance to ensure that its capacity to fully implement the Agreement upon
expiration of the transition period is assured.
130. In response to requests from delegations for more specificity, the representative of Cambodia
presented an Action Plan setting out details of the steps that still remained to be taken in order to
achieve this objective and a timetable for each step (Table 10).WT/ACC/KHM/21
Page 27
Table 10: Action plan for implementation of the Agreement on Technical Barriers to Trade
Action Deadline
Adoption of Sub-Decree on Industrial Standards NO. 42/ANK/BK
Adoption of Sub-Decree on MetrologyImplementation of Revised Notice on Registration of Industrial Products1999-2002
Identification of the Department of Industrial Standards of Cambodia (ISC) as the
authority responsible for notifications and publications required by the TBT
Agreement.
Establishment of the TBT Enquiry Point in ISC:
Department of Industrial Standards of Cambodia (ISC)
Ministry of Industry, Mines and Energy
#45, Norodom Blvd. Phnom Penh,Cambodia.Fax: 855-23-216086E-mail: discinfo@camnet.com.kh
Establishment of TBT/Standards Library in ISC
Installation, testing, and calibration of equipment in ISC laboratoriesCapacity building for key standards personnel in the field of standardization,
management, methods and procedures for sampling and inspection, auditing,
inspection and surveillance, and for auditors, assessors, inspectors, and staffresponsible for testing and calibration and for issuing certificates and licenses.2003
WP review of legislation Prior to accession
Submission of Statement on Implementation to WTO (per G/TBT/1) Upon accession
Enactment of Law on Industrial Standards and adoption of the Sub-Decree and
Regulations for its implementation
Compliance with the Code of Good Practice
Development Technical Regulations and Conformity Assessment Procedures for
Implementation of TBT Agreement (per list in WT/ACC/KHM/14/Rev.1)No later than
1 July 2004
Publication of a periodic Standards Bu lletin or Gazette by the ISC covering
activities relating to technical regulations, standards and conformity assessmentprocedures.No later than
1 January 2005
Training of standards staff on international trade and TBT implementation
Review and adjustment of technical regulations and procedures in accordance with
new scientific discoveries and approaches.2005-2006
Full implementation of the WTO Agreement on Technical Barriers to Trade No later than
1 January 2007
131. The representative of Cambodia stated that  Cambodia would progressively implement the
Agreement on Technical Barriers to Trade in accordance with the action plan in Table 10 and with the
understanding that during this period the scope of implementation of other aspects of the Agreement,
as described in paragraph 129 would be applied by Cambodia.  Full implementation will start from
1 January 2007 without recourse to any further transitional period.  The Working Party took note ofthis commitment.WT/ACC/KHM/21
Page 28
(b) Sanitary and phytosanitary measures
132. At the outset, the representative of Cambodia said that Cambodia's sanitary and phytosanitary
measures were applied and regulated on the basis of the Law on the Management of Quality and
Safety of Products and Services of 21 June 2000, the Sub-Decree on Sanitary Inspection of Animal
and Animal Products of 29 July 1988, the Sub-Decree on Plant Quarantine of 8 October 1983, and theSub-Decree on Standards and Management of Agricu ltural Materials of 28 October 1998.  Further
work to ensure compliance with the Agreement on the Application of Sanitary and Phytosanitary
Measures (SPS Agreement) involved revision of  the 1983 and 1988 sub-Decrees as well as the
preparation of new sub-decrees and regulations related inter alia  to food hygiene, labelling and safety
requirements, detailed in the completed SPS Checklist circulated in document WT/ACC/KHM/9 and
the Action Plan for the Implementation of the SPS Agreement, circulated in document
WT/ACC/KHM/15, and subsequently revised in document WT/ACC/KHM/15/Rev.1.
133. Among the actions taken during 2001 and 2002, he noted that Cambodia had established a
National Codex Committee and technical working groups, which were meeting on a regular basis, and
Codex Units had been set up in each Ministry concerned to provide effective inputs and proactive
participation in Codex work;  the chemical and microbiological food analysis laboratory at
CAMCONTROL had been strengthened;  a Plant and Animal Quarantine Station had been establishedand programmes had been designed in the areas of plant pest and animal disease surveillance and
control and pest and disease control;  officials had received training in risk analysis;  and Cambodia
had implemented specific training programmes in the areas of plant quarantine, animal quarantine,
laboratory diagnostic and product testing, and plant and animal quarantine.  A first draft of a Sub-
Decree on Food Hygiene, including storage requirements and microbiological requirements had alsobeen completed.
134. He added that the National Codex Committee at the Ministry of Commerce would serve as
Cambodia's SPS Enquiry Point.  Assuming that technical assistance would be provided, he expected
the enquiry point to become operational in 2003.  The basic transparency provisions of the SPS
Agreement had been incorporated in a sub-Decree on Plant Quarantine and Animal Quarantine,stipulating publication of proposed measures at an early stage and a procedure to provide information
to WTO Members, thus allowing a reasonable period of time for comment by WTO Members and the
public, and a process for taking account of the comments received without discrimination.  The Sub-
Decree on Plant Quarantine, and the Sub-Decree on Sanitary Inspections of Animal and Animal
Products had been adopted by the Council of Ministers on 14 February 2003.  The framework for
adopting the standards, guidelines and recommendations developed by the relevant international
organizations (the Codex Alimentarius Commission, the International Office of Epizootics andinternational or regional organizations operating within the framework of the International Plant
Protection Convention) would be incorporated in the Law on Industrial Standards of Cambodia,
planned for promulgation in the first half of 2003.  Other legislation in preparation during 2003
included draft sub-Decrees on Food Safety Standards on Additives (sweeteners, colours, flavours,
preservatives and antioxidants);  Food Inspection Administration;  Food Safety Standards onEnvironmental Contaminants;  Food Safety Standards on Agricultural Chemicals (pesticide residues);
draft regulations on safety requirements for fresh fruit and processed fruit;  draft regulations on safety
requirements for cereals pulses and legumes;  draft guidelines on assurance of seafood quality;  and
draft registration procedures and implementation of registration for cosmetic products.
135. Noting a temporary ban on the importation of meat, meat products and associated dairy
products from certain EU countries, a Member wa s concerned that customs officials in Cambodia
appeared to interpret the ban to include other c ountries, and asked how Cambodia intended to ensure
non-discriminatory application of its SPS regime.WT/ACC/KHM/21
Page 29
136. The representative of Cambodia replied that a temporary ban had been introduced to prevent
the spread of diseases potentially harmful to human and animal health.  The ban had been introduced
in the light of information received from the Codex Alimentarius on the potential risk of BSE in meat,
meat products and dairy products originating in certain EU countries.  The ban had been initiated in
March 2001 under Government Prakas No. 089.  The ban had subsequently been terminated inSeptember 2001.
137. The representative of Cambodia said that achieving full compliance with the requirements of
the SPS Agreement was a complex process, and Cambodia was accordingly seeking a transition
period during which the requirements would be implemented gradually in accordance with the Action
Plan summarized in Table 11.  He stressed that Cambodia's pace in implementing the SPS Agreement
would depend on the assistance made available by WTO Members and relevant international
organizations for Cambodia to develop new regula tions in conformity with WTO provisions and
ensure their effective implementation, in particular through training.
138. Some Members stated that they considered implementation of the SPS Agreement a key
element of Cambodia's accession.  Having reviewed Cambodia's Action Plan, these Members were
reluctant to grant a five-year transition period without specific guidelines on implementation or
sufficient detail to justify these transitional arrangements.  It was noted that Cambodia should givepriority to the establishment of an enquiry point, any SPS measures taken by Cambodia should be
notified to the WTO, and Cambodia should be prepared to consult with WTO Members upon request
if measures taken would affect their exports negatively.  The need for a two-year period for
"readjusting technical regulations, standards, etc." was questioned.  Cambodia was encouraged to
consider adoption of international standards where such standards would meet Cambodia's needs and,where international standards would not be deemed appropriate, Cambodia should consider drawing
upon WTO-consistent standard setting work of other governments.
139. In reply, the representative of Cambodia referred to the revised Action Plan for the
Implementation of the SPS Agreement, found in document WT/ACC/KHM/15/Rev.1, which in his
view contained very specific guidelines and deta ils regarding implementation.  In his view, full
implementation of the SPS Agreement could be achieved by 2007/2008.  Cambodia would draw upon
international standards and the work of other governments as appropriate.  In this connection, he
noted that the National Assembly and Senate had ratified Protocol 8 on Sanitary and Phytosanitary
Measures of the ASEAN Framework Agreement on the facilitation of goods in transit.
140. Members suggested that, based on the information provided on Cambodia’s progress to date
and plans for further progress found in document WT/ACC/KHM/15/Rev.1, Cambodia should be able
to complete formal implementation of legal authority, procedures, and the basic infrastructure forapplying SPS measures to imports in a WTO-consistent fashion prior to 1 January 2004 and be
prepared to apply fully the provisions of the Agreement by 1 January 2006, and sought Cambodia’s
commitment to a timetable of implementation on that basis.
141. The representative of Cambodia requested that the Working Party grant a transitional period
from the date of its accession until 1 January 2008 for implementation of the WTO Agreement onSanitary and Phytosanitary Measures, to allow Cambodia to obtain and utilize technical assistance to
fully implement the obligations of the Agreement.  During this period, existing measures would be
applied on a non-discriminatory basis, i.e., providing for national treatment and MFN treatment to all
imports.  Measures in place already consistent with the provisions of the Agreement on Sanitary and
Phytosanitary Measures would not be subject to transitions, and Cambodia would ensure that anychanges made in its laws, regulations and practice during the transition period would not result in a
lesser degree of consistency with the provisions of the Agreement than existed on the date of
accession.  Technical regulations and other measures adopted during this period would be developed
in conformity with the provisions of the Agreement.  Priority would be given to the establishment of aWT/ACC/KHM/21
Page 30
functioning enquiry point and the notification of  all of Cambodia’s SPS measures to the Committee.
He added that Cambodia would seek out all available technical assistance to ensure that its capacity to
fully implement the SPS Agreement upon expiration of the transition period is assured.  Cambodia
would fully participate in the work of the Committee on Sanitary and Phytosanitary Measures.  In
response to requests from delegations for more specificity, the representative of Cambodia presentedan Action Plan setting out details of the steps that still remained to be taken in order to achieve this
objective and a timetable for each step (Table 11).
Table 11:  Action Plan for Implementation of the Agreement on the
Application of Sanitary and Phytosanitary Measures
Action Deadline
Enactment of basic legal and operational framework for implementation of Articles 2-8
of the SPS Agreement:
- Sub-Decree on Sanitary Inspection of Animal and Animal Products of 29 July
1988 (No.14AR.NOR.KRAR), as revised on 14 February 2003
- Sub-Decree on Plant Quarantine of 8 October 1983 (No.98AR NOR KRO), as
revised on 14 February 2003
- Sub-Decree on Standards and Manageme nt of Agricultural Materials of
28 October 1998 (No.69 AR NOR KRA/BARKAR)
- Law on the Management of Quality and Safety of Products and Services of
21 June 2000.
- Sub-decree No. 5 dated 3 February 1998 on the establishment of the Inter-
ministerial Committee for coordinating the control of quality and safety of
products and services.
- Law on the Management of Quality and Safety of Products and Services
(promulgated by Reach Kram No. NS/RKM/0600/001 dated 21 June 2000).
- Sub-decree No. 28 dated 9 March 2001 on the establishment of the National
Codex Committee (NCC) and its Secretariat.
- Prakas No. 357/MOC dated 31 December 2001 on the establishment of the
Technical Working Groups (TWG) for the National Codex Committee.Completed
Enactment of further legal provisions for implementation of the SPS Agreement:
program, e.g., Drafting a sub-decree on Food Hygiene, including storage requirementand microbiological requirements, per WT/ACC/KHM/15/Rev.1.
Establishment of the SPS Enquiry Point, training of personnel, and procurement of
necessary equipment (Decision of the Council of Ministers --notification letter No.
1093 dated 26 July 2002):
National Codex Committee
Cambodia Import-Export and Fraud Repression Department (CAMCONTROL)Ministry of Commerce (acting as Secretariat)
Fax:  (855) 23-426 166
Email:  camcontrol@camnet.com.kh
Establishment of Codex Library
Implementing specific technical training programs in SPS, per
WT/ACC/SPEC/KHM/15/Rev.1
Drafting of additional regulations and sub-decrees to implement the SPS Agreement
and provide for necessary application of sanitary and phytosanitary measures, perWT/ACC/SPEC/KHM/15/Rev.1
Proficiency testing for food:  microbiological and hygiene, and food chemical analysis2003WT/ACC/KHM/21
Page 31
Action Deadline
toward MRA'S in the region.
Capacity building for key Camcontrol, MAFF and  MoH personnel on the
implementation of the above regulations.
WP review of legislation Prior to accession
Drafting additional regulations on food safety and guidelines for food productscertification (for exports), per WT/ACC/SPEC/KHM/15/Rev.1.
Capacity building for key Camcontrol, NCC, and TWGs personnel on the
implementation of the above regulations.
Updating the Codex Library.2004-2005
Readjustment of technical regulations, standards and procedures in accordance with
new scientific discoveries and approaches.
Working toward accreditation of inspec tion bodies and testing laboratories.
Capacity building for key Camcontrol, NCC, and TWGs personnel on the
implementation of the above regulations.
Updating the Codex Library.2006-2007
Full implementation of the WTO Agreement on the Application of Sanitary and
Phytosanitary  MeasuresNot later than
1 January 2008
142. The representative of Cambodia confirmed that Cambodia would implement progressively the
provisions of the WTO Agreement on the Application of Sanitary and Phytosanitary Measures withinthe timetable provided for in the Action Plan for Implementation in Table 11, and would ensure full
implementation of the Agreement no later than 1 January 2008, and with the understanding that
during this period the scope of implementation of other aspects of the Agreement, as described in
paragraph 141 would be applied by Cambodia.   He further confirmed that Cambodia should consult
with WTO Members upon request if they deemed that any measures applied during the transitionperiod affected their trade negatively.  The Working Party took note of these commitments.
Trade-Related Investment Measures (TRIMs)
143. The representative of Cambodia said that Chapter V of the Law on Investment of
4 August 1994 and Chapter 7 of Government S ub-Decree No. 88 ANKR.BK on the Implementation
of the Law on Investment of 29 December 1997 contai ned certain trade-related provisions, including
incentives for export-oriented investments that include the exemption, in whole or in part, of duties
and taxes;  corporate profit tax exemptions and preferences, depending on the characteristics of the
project and its priority status with the Government of Cambodia;  and tax exemption on dividend or
profit distribution whether transferred abroad or distributed in Cambodia (Articles 12, 13, and
14:1-3 of the Law on Investment).  Such investme nts could also be exempted from the export tax
and enjoy special rules for entry of foreign nationals.  In particular, Article 14:4(a) and (b) exempted
100 per cent of import duties on construction materials, means of production equipment,intermediate goods, raw materials and spare parts used in  export-oriented investment projects with a
minimum of 80 per cent of the production exported, or located in a designated Special Promotion
Zone  (SPZ) listed in a development priority list issued by the Council for the Development of
Cambodia.  Article 14:4(c), (d), and (e) provided that such incentives could be authorized for
investments involving the tourism industry, labour-i ntensive industry, transformation industry, agro-
industry or physical infrastructure and energy industry for the construction period of enterprises,
factories, building and the first year of operation of business production.  These measures were, in his
view, incentives consistent with the Agreement on Trade-Related Investment Measures, and would beWT/ACC/KHM/21
Page 32
maintained as long as they were permitted by WTO provisions and Cambodi a’s Protocol of Accession
and would meet Cambodia’s development needs.  However, the newly amended Law on Investment,
in its Article 14 concerning incentives, does not make any reference to the "minimum 80 per cent of
the production for export".  Moreover, the implementing sub-Decree which will be drafted will be
made to ensure full compliance with the WTO provisions on TRIMs.
144. The representative of Cambodia said that Cambodia would not maintain any measures
inconsistent with the TRIMs Agreement and would apply the TRIMs Agreement from the date of
accession without recourse to any transitional period.  The Working Party took note of this
commitment.
State trading entities
145. The representative of Cambodia said that eleven State-owned companies engaged in
importation and exportation of products such as rice, rubber, fertilizer, fishery products,pharmaceutical products and agricultural equipment.  The enterprises operated in full accordance with
commercial considerations and private business practices, and no special privileges were granted to
them.  He was thus of the view that none of Cambodia's State-owned enterprises came within the
scope of Article XVII of the GATT 1994, the Understanding on the Interpretation of Article XVII of
the General Agreement on Tariffs and Trade 1994, or the informal illustrative list of State-tradingenterprises contained in document G/STR/4.
146. Asked to provide more precise information about the trade activities of these enterprises and
their relations with the Government, the representative of Cambodia said that the Green Trade
Company (GTC), established by sub-Decree No. 72 of 23 November 1998, managed Cambodia's
national reserve of rice through purchases and sales made at market prices.  Although the Green TradeCompany was free to trade in foodstuff and other commodities of its own choice, in practice the GTC
has so far only engaged in the rice trade.  Other than the initial capitalization of 30 billion Riels,
subscribed by the Government of Cambodia in 19 98, the GTC had received no funding or financial
contributions from public funds.  Each year the GTC remitted one per cent of its total turnover or
20 per cent of its gross profits, whichever was higher, to the Government as return on the equity.  Thecompany's needs for operational liquidity or work ing capital would be financed by the regular
banking system at market rates.  If requested, and subject to approval by the Minister of Economy and
Finance, his Government could issue guarantees for such loans.  The GTC was subject to technical
supervision by the Ministry of Commerce, and financial supervision by the Ministry of Economy and
Finance.  Prior to 26 July 2001, when export licences for rice had been lifted, the Green Trade
Company had upon request provided market information and advice to the Ministry of Commerce for
the issuance of export licences.  Since then, the Green Trade Company had had no further role to playin Cambodia's rice exports as the company engaged solely in distribution and domestic trade in rice.
147. Established through Anukret No. 12 of 18 February 1999, the Agricultural Inputs Company
was managed by a board of five directors from the Ministry of Agriculture, Forestry, and Fisheries,
Ministry of Economy and Finance, and Ministry of Commerce.  The company engaged in
importation, purchase and sale of agricultural products (fertilizer, pesticides, seeds and agriculturalequipment), warehousing and managing the distribution of donated fertilizers and agricultural inputs,
administered statistical data, and participated in training programmes and research.  He stressed that
the Agricultural Inputs Company operated on a stric tly commercial basis, in competition with the
private sector.  Imports of agricultural inputs by the Agricultural Inputs Company had been effected
though private enterprises.  In 2002, the company had called for bids from private-sector importers tosupply 15,000 tonnes of fertilizer for delivery in 2003, but no purchases had been made.  He added
that his Government intended to establish a committee that would draft a plan for full divestment of
State-ownership in the Agricult ural Inputs Company by 2006 (Circular by the Council of Ministers
No. 2018 of 26 December 2002).WT/ACC/KHM/21
Page 33
148. Concerning State-ownership in the rubber se ctor, the representative of Cambodia said that
seven rubber plantations (Chup, Krek, Memot, Snoul, Chamcar Andoung, Boeng Ket and Peam
Chaing) were being transformed into public enterprises under the Ministry of Agriculture, Forestry
and Fisheries pursuant to the Law on Public Enterprises through sub-Decrees approved on
15 March 1999.  Although the estates remained State-owned, the sub-Decrees conferred fullautonomy to the Boards of Directors of the estates (which delegated the conduct of day-to-day
operations to a Director General), financial transactions and management issues, and the enterprises
received no privileges from the Government.  An audit exercise was currently being conducted for
each estate to determine whether it should be closed, sold to the private sector, or turned into a joint-
venture with majority private ownership.  His Go vernment intended to complete the wind-up of State-
ownership in the estates by 2006 (Circula r by the Council of Ministers No. 2018 of
26 December 2002).  Enterprises in State-ownership as per March 2003 are listed in Table 1(b).
149. The representative of Cambodia confirmed that, if Cambodia were to authorize the operation
of any state trading enterprises, it would ensure that all relevant laws and regulations were in
conformity with the requirements of Article XVII of the GATT 1994, the Understanding on
Interpretation of Article XVII of the GATT 1994, and Article VIII of the GATS, including those
provisions requiring the application of "commercial considerations" in the sale and purchase of statetraded commodities and notification requirements.  He further confirmed that the operations of the
enterprises to be retained as State-owned, including the Green Trade Company, were consistent with
the provisions of GATT Article XVII, and that no new privileges in terms of Article XVII would be
granted to the these or other entities.  Cambodia would apply its laws and regulations governing the
trading activities of state-owned enterprises in full conformity with the provisions of the WTOAgreement.  The Working Party took note of these commitments.
Free zones, special economic areas
150. The representative of Cambodia said that there were currently no free zones in Cambodia.
His Government had been considering the establishment of industrial zones, including export
processing zones.  Government Sub-Decree N o. 73 of 5 October 1995 and Sub-Decree No. 2 of
5 January 1996 foresaw the creation of an industrial zone in Stung Hav-Sihanouk Ville, but the
project remained to be implemented.  Poipet, Koh Kong, Pailin (on the border with Thailand) and
some other areas along the border with Viet Nam had been evaluated as potential sites for further
export processing zones.  As a result of this evaluation, a decision to establish an industrial zone in
Koh Kong had been issued by Governmental sub- Decree No. 10 of 5 February 2002.  In addition, the
Law on Investment and Government sub-Decree No. 88 ANKR.BK had foreseen establishment of
Special Promotion Zones, as described in paragraph 143 above.  A draft Law on Industrial Zones hadbeen approved by the Council of Ministers in March 2003 and was currently under consideration by
Parliament.  Pending the passage of this law, other zones could possibly be established by sub-Decree.
He confirmed that the draft Law contained no export performance measures or local content
requirements.
151. The representative of Cambodia said that the free zones or special economic areas, including
special promotion zones established in accordance with the Law on Investment which it established
would be fully subject to the coverage of WTO Agreements and its commitments in its Protocol of
Accession to the WTO Agreement and that Cambodia would ensure enforcement of its WTO
obligations in those zones or areas.  In addition, in accordance with the (draft) Law on Industrial
Zones, from the date of accession goods produced in any such zones or areas under tax and tariffprovisions that exempt imports and imported inputs from tariffs and certain taxes would be subject to
normal customs formalities when entering the rest of Cambodia, including the application of tariffs
and taxes.  The Working Party took note of these commitments.WT/ACC/KHM/21
Page 34
Government procurement
152. The representative of Cambodia said that a new public procurement system had been
in operation since 30 July 1995 (sub-Decree No. 60).   Procurement was carried out through either
(i) international competitive bidding (ICB); (ii) domestic competitive bidding (DCB);
(iii) international shopping (IS); (iv) domestic canvassing (DC); or (v) direct purchase or directcontracting (Dcon).  ICB and DCB contracts were advertised publicly and open to all interested
bidders.  The DCB procedure was applied to proj ects below 200 million Riels for civil work and
100 million Riels for goods.  The procedure used for procurement above these thresholds was the
ICB, whose regulations complied with international standards.  The last three methods did not require
open public competition, but participation of foreign bidders was not prohibited.
153. The lowest-priced bid was generally chosen under the ICB and DCB procedures, but other
factors such as the completeness of the bid, deliver y periods, conformity with technical specifications,
the bidder's experience and financial standing, and required supporting documents might also be
considered.  International shopping (IS) involved obtaining a minimum of three quotations from at
least two different countries.  He added that practices could deviate from established procurement
procedures, and domestic preference could be granted in cases of emergency purchases, proprietary
procurement, small-value items, and acquisition of military equipment and supplies.
154. Some Members noted that Cambodia's procurement policies were relatively open and that
Cambodia would benefit from membership in the Agreement on Government Procurement.
A Member invited Cambodia to ensure transparency in its Government procurement practices and
policies and to consider the work being done in the WTO Working Group on Transparency in
Government Procurement.
155. The representative of Cambodia replied that Cambodia did not intend to join the plurilateral
Agreement on Government Procurement for the time-being.  He nevertheless took note of Members'
comments.
Trade in Civil Aircraft
156. The representative of Cambodia said that the current rate of duty on civil aircraft and aircraft
parts ranged from zero to 15 per cent.  Cambodia did not accord tariff exemptions on equipment, parts
or technical supplies required for airports in connection with air services.
Transit
157. The representative of Cambodia said that Cambodia had no specific regulation related to trade
in transit.  Cambodia had signed bilateral agreements on transit trade with the Socialist Republic of
Viet Nam on 3 April 1994 and with People's Democratic Republic of Lao on 12 May 1994.
According to the agreemen t with Viet Nam, the parties allowed the transit of goods across each
other’s territory, except for prohibited imports and exports such as narcotics, toxic chemicals,
radioactive items, pornographic and other materials contrary to public morals, as well as rare, wild
and precious animals and plants.
158. The representative of Cambodia confirmed that his Government would apply any laws,
regulations and practices governing transit operations and would act in full conformity with theprovisions of the WTO Agreement, in particular Article V of the GATT 1994.  The Working Party
took note of this commitment.WT/ACC/KHM/21
Page 35
Agricultural policies
(a) Imports – description of the types of border protection maintained
159. The representative of Cambodia said that Cambodia imposed no licensing requirements nor
quantitative restrictions or prohibitions on imported agricultural products.  The trade-weighted
average tariff on agricultural products was approximately 17 per cent.  Sanitary and phytosanitarycertificates were required for the importation of agricultural products.
(b) Exports
160. The representative of Cambodia said that Cambodia did not impose prohibitions or
restrictions on exported agricultural products, except for narcotic drugs.  A ten per cent tax was levied
on exports of pure bred cattle and swine, as noted in Table 8.  Export restrictions on rice had been
lifted in July 2001, but Cambodia would reserve its right to restrict exports of rice temporarily to
prevent or relieve critical shortages of foodstuffs as foreseen under Article XI:2(a) of the GATT 1994.He confirmed that Cambodia operated no export credit, export credit guarantee or insurance
programmes for agricultural products.
(c) Internal policies – i.e. description of, and the budgetary expenditure and any revenue foregone
involved in each of the domestic support measures in place
161. The representative of Cambodia said that the majority of Cambodia's population lived in rural
areas and their livelihood depended on agriculture, particularly the cultivation of rice.  Government
policies aimed at improving food output and food security.  The Ministry of Agriculture managed a
Rice Seed Bank, which provided rice seed to farmers affected by natural disasters.  Local offices of
the Ministry of Water Resources and Meteorology also distributed diesel fuel free of charge to be
used by farmers in the operation of irrigation water pumps in emergency drought situations.
162. He provided information on domestic support and export subsidies in agriculture for the
period 1998-2000 in document WT/ACC/SPEC/KHM/3 of 11 December 2001 and its Revision 1 of
29 July 2002 and Addendum 1 to that document (background note).  In addition to "green box
measures", which included the programmes mentioned above as well as farmers' exemptions from
agricultural land tax and income tax (classified as decoupled income support), the representative ofCambodia noted in Supporting Table DS:9 that VAT exemptions on agricultural inputs were generally
available to farmers, although estimates of the revenue foregone by the Government were not
available due to lack of statistical data.  Farmers' exemption from land and income taxes, and turnover
tax or VAT on own produce at the first point of sale, was an important element of Cambodia's strategy
towards poverty alleviation and rural development.  Plantation-type agricultural entities were
subjected to VAT.
163. Responding to a specific question on Cambodia's Rice Reserve Policy, the representative of
Cambodia added that the objective of the Rice Reserve was to provide emergency food aid to victims
of natural disasters.  During 1998-2000, 1 billion Riels of Government funds had been earmarked
each year for purchases from the Rice Reserve, and the allocation had increased to 1.64 billion Riels
in 2001 and 3.28 billion Riels in 2002.  Purchases to the Rice reserve (and sales) were effected by the
Green Trade Company and had the effect of moderating movements in the domestic price of rice.When emergencies triggered the release of rice reserves, the National Committee for Disaster
Management (NCDM) would purchase the rice from the Green Trade Company at cost plus a small
mark-up.  The NCDM in turn provided the rice to victims of natural disasters free of charge.
164. The representative of Cambodia agreed that , upon Cambodia's accession, his country would
bind its agricultural export subsidies at zero in its Schedule of Concessions and Commitments onWT/ACC/KHM/21
Page 36
Goods, and not maintain or apply any export subsidies for agricultural products.  The Working Party
took note of these commitments.
Textiles Regime
165. The representative of Cambodia said that textiles and clothing were not subject to any special
regime in his country.  Although import duties on such products were relatively high in Cambodia –
on average 34 per cent for garments and 14 per cent on yarn and fabrics – most Cambodian garments
manufacturers were registered investment firms pr oducing for export, and thus exempt from paying
duty on imported raw materials and intermediate goods.  Cambodia had concluded an Agreement
Relating to Trade in Cotton, Wool, Man-made Fibr e, Non-Cotton Vegetable Fibre and Silk Blend
Textile, and Textile Products with the United States.  The representative of Cambodia confirmed that
Cambodia would extend the same preferential tariff rates accorded to U.S.-origin textile and apparel
products under the Agreement to all WTO Members on an MFN basis upon accession.  Under theterms of the bilateral agreement, the United States had placed quantitative restrictions on 13
categories of apparel from Cambodia.  Exports of  certain textile products to Canada were also
restrained under a bilateral agreement.  An EU-Cambodia textile agreement allowed quota-free access
to the EU market, but set up double-checking (surveillance) on nine categories as well as
administrative cooperation, with the view to verify and ascertain Cambodian origin of the goods.
166. The representative of Cambodia confirmed that the quantitative restrictions on imports
maintained by WTO Members on textiles and clothing products originating in Cambodia that were in
force on the date prior to the date of accession of Cambodia to the WTO should be notified to the
Textiles Monitoring Body (TMB) by the Members main taining such restrictions and would be applied
for the purposes of Article 2 of the Agreement on Textiles and Clothing.  Thus, for the purposes ofCambodia's accession to the WTO, the phrase "in force on the day before the entry into force of the
WTO Agreement" contained in Article 2.1 of the Agreement on Textiles and Clothing shall be
deemed to refer to the day prior to the date of accession of Cambodia to the WTO.  To these base
levels the increase in growth rates provided for in Article 2.13 and 2.14 of the Agreement on Textiles
and Clothing shall be applied, as appropriate, in the Agreement on Textiles and Clothing from thedate of Cambodia's accession, such base levels and growth rates coming to an end upon the
termination of the Agreement on Textiles and Clothing.  The Working Party took note of these
commitments.
Trade-Related Intellectual Property Rights (TRIPS)
1. General
(a) Industrial property protection
167. The representative of Cambodia said that his Government considered the protection of
intellectual property rights essential for the foster ing of economic development, to stimulate foreign
investment and the transfer of technology, and to facilitate Cambodia's integration into the world
economy.  At the outset Cambodia's protection of intellectual property rights had been based on
Articles 47 and 48 of the Provisions Relating to the Judiciary and Criminal Law and Procedure
Applicable in Cambodia During the Transitional Period, issued on 10 September 1992, andDeclaration No. 368 of the Ministry of Commerce on Procedures of the Intellectual Property
Department of 15 December 1997.
168. He added that his Government had been drafting new legislation with the help of foreign
experts and WIPO to bring Cambodia's legislation into line with the TRIPS Agreement, including a
Law on Marks, Trade Name, and Acts of Unfair Competition, promulgated on 7 February 2002;  a
Law on Patents, Utility Models and Industrial Designs promulgated on 22 January 2003;  and a LawWT/ACC/KHM/21
Page 37
on Copyright and Related Rights promulgated on 5 March 2003.  Further laws on Geographical
Indications, Layout Design of Integrated Circuits , Protection of Undisclosed Information and Trade
Secret, and Plant Variety Protection were in prep aration and expected to be promulgated in 2004.
Cambodia was also working on a new Civil Code, scheduled for adoption in 2004, which would
backstop the protection of intellectual property.  He confirmed that the new Civil Code would notduplicate provisions of specific intellectual property laws.
169. The representative of Cambodia provided detailed information on the implementation of the
TRIPS Agreement in document WT/ACC/KHM/7 and its Revisions 1 and 2.  He also submitted an
Action Plan in document WT/ACC/KHM/16, and a revised Action Plan in document
WT/ACC/KHM/16/Rev.1, and described the efforts of his Government to secure technical assistance
in connection with the Action Plan.
(b) Responsible agencies for policy formulation and implementation
170. The representative of Cambodia said that the Department of Intellectual Property of the
Ministry of Commerce was responsible for the formulation and implementation of policy regarding
marks, trade name, and acts of unfair competition.  The Ministry of Industry, Mines, and Energy was
in charge of patents, utility models and industrial designs, the Ministry of Culture and Fine Arts of
copyrights and related rights, and the Ministry of Information recognized the collective managementorganizations of broadcasting rights.
171. Asked whether Cambodia intended to rationalize its administrative arrangements by
establishing a single agency in charge of the administration of rights subject to grant and registration
such as patents, trademarks and industrial designs, the representative of Cambodia replied that
Cambodia had established a Committee to Govern the Three Areas of Intellectual Property Rights (i.e.trademarks, patents and copyright).  The Minister of Commerce chaired the Committee, which had a
mandate to coordinate the technical and administrative procedures of the various agencies with IPR
responsibilities.  The Committee also coordinated technical assistance in these areas.  He saw this
Committee as a possible first step in the direction of establishing a single agency in charge of
administration of rights subject to grant and registration.
(c) Participation in international intellectual property agreements
172. The representative of Cambodia said that Cambodia had been a member of the World
Intellectual Property Organisation (WIPO) since 1995 and the Paris Convention for the Protection of
Industrial Property Rights since 1998.  Cambodia planned to adhere to the WIPO Copyright Treaty
(WCT) and the WIPO Performances and Phonograms Treaty (WPPT) in 2005, and to join the Berne
Convention after adoption of the Law on Copyright and Related Rights, and the Patent Cooperation
Treaty upon enactment of the Law on Patents, Utility Models and Industrial Designs.  HisGovernment was also considering membership in the International Convention for the Protection of
New Varieties of Plants (UPOV), and a new law was being drafted to this end with the assistance of
UPOV.  Ratification of the Geneva Phonogram Convention and the Brussels Satellite Convention
would also depend upon the enactment of the Law on Copyright and Related Rights and other
relevant legislation currently in preparation.
173. Cambodia had been participating in the ASEAN Framework Agreement on Intellectual
Property Cooperation since 30 April 1999.  Cambodia had also concluded bilateral agreements on
intellectual property protection and cooperation wi th the United States and the Kingdom of Thailand.WT/ACC/KHM/21
Page 38
(d) Application of national and MFN treatment to foreign nationals
174. The representative of Cambodia said that national and MFN treatment was granted to all
foreign nationals under existing intellectual property legislation, and all draft legislation continued to
integrate the same principles.
(e) Fees and taxes
175. The representative of Cambodia said that trademarks processing fees amounted to US$50 per
certificate for registration, US$50 per class for publication, and US$5 per class for services.  These
fees were subject to revision by the Ministry of Commerce, having consulted with the Ministry of
Economy and Finance (though a joint Prakas of the Ministry of Commerce and the Ministry of
Economy and Finance).  Fees concerning patents and copyright remained to be determined.
2. Substantive standards of protection, including procedures for the acquisition and maintenance
of intellectual property rights
(a) Copyright protection
176. The representative of Cambodia said that a new Law on Copyright and Related Rights had
been adopted by the Council of Ministers in March 2002, and ratified by the National Assembly and
the Senate on 21 January 2003.  The Law on Copyri ght and Related Rights had been promulgated on
5 March 2003.  In the interim, copyright protection had been regulated by Article 48 of the10 September 1992 Provisions Relating to the Judiciary and Criminal Law and Procedures Applicable
in Cambodia During the Transitional Period.
177. The Law provided copyright protection for literary works;  artistic and scientific documents;
official legislative, judicial and administrative texts;  spoken works (conferences, speeches, sermons,
etc.);  dramatic and dramatic-musical works;   choreographic works and pantomimes;  musical
compositions with or without words;  audiovisual works with or without sound and photographs
extracted from these works;  drawing, painting, architectural, sculptural, engraving and lithography
works;  graphic and typographic works;  photographic works and works produced with techniques
similar to photography;  work of applied arts;  illustrations, cards, plans, sketches and plastic works
pertaining to geography, topography, architecture a nd sciences;  computer programmes;  and derived
works, such as translation, adaptation, transformation of one or several pre-existing works.
178. Protection was provided for the lifetime of the author and 50 years after his/her death.  The
rights subsisted for 50 years, starting on 1 January of the calendar year following the date of fixation,
first disclosure of the performance, or first broadcast.  As to pre-existing works that had not yet fallen
into the public domain, the spirit of the Law on Copyright and Related Rights complied throughout
with Articles 1 through 21 of the Berne Convention, including Article 18.  Chapter 5 (Articles 30 and
31) and Chapter 6 (Article 67) of the Law on Marks, Trade Names and Acts of Unfair Competitionalso covered the protected duration and adherence to international treaties.  In response to a specific
question, the representative of Cambodia added that the Law included enforcement provisions
providing for destruction of infringing goods (Articles 58-66).
179. He also added that the Law on Copyright and Related Rights provided for the protection of
compilations of data (Articles 7 and 21), computer programs as literary works, rental rights forcomputer programmes, and the exclusive rights of a broadcaster to authorize rebroadcasts by wireless
means (Articles 47 and 48).WT/ACC/KHM/21
Page 39
(b) Trademarks, including service marks
180. The representative of Cambodia said that the new Law on Marks, Trade Name and Acts of
Unfair Competition had been promulgated on 7 February 2002.  A sub-Decree and Implementing
Regulations to the Trademarks Law was expected to be adopted during 2003.  Under the Law,
applications for registration of a mark were to be submitted to the Intellectual Property Division at theMinistry of Commerce.  Actual use of a mark was not a condition for filing an application.  Priority
was given to the person who first validly filed the mark or claimed the earliest priority to the mark.
Priority rights to a mark already filed in another member of the Paris Convention or the WTO could
be conferred, on the basis of the first filing date, to the same applicant or his successor, provided that
the filing in the Kingdom of Cambodia was made w ithin six months following the first filing.  A
trademark was protected for 10 years and could be renewed indefinitely for successive periods of ten
years.  Failure to use a registered mark for more than five years without valid reasons could lead tonullification of the protection.  Trademark rights could be transferred or licenced and the right holder
had the exclusive right to request the competent authority to handle infringement cases.  The use of a
trademark by a licence holder (but not the mere licensing of the right) was considered as an act of use.
181. Protection could be granted to a mark without distinctive characteristics, provided that such
mark had been widely used and enjoyed a good reputation in Cambodia.  He confirmed that well-known marks were protected in accordance with Article 6 bis of the Paris Convention and Article 16
of the TRIPS Agreement under Article 4(e)(f) and Article 14(f) of the Law on Marks, Trade Name
and Acts of Unfair Competition.  Cambodia had already conducted several enforcement operations
with respect to well-known marks, and he conf irmed Cambodia's commitment to adhere to, and
effectively enforce, Cambodia's international obligations and its intellectual property laws withrespect to well-known marks in a fair and transparent manner in the future.  The Law also included
provisions concerning unfair competition, including indications or allegations likely to mislead the
public.  No specific law on unfair competition was envisaged for the time-being.
(c) Geographical indications, including appellations of origin
182. The representative of Cambodia said that Cambodia did not protect geographical indications
at present.  He expected a new law covering this subject, including additional protection for
geographical indications for wines and spirits, to be promulgated in 2004.
(d) Industrial designs
183. The representative of Cambodia said that industrial designs were protected according to the
Law on Patents, Utility Models and Industrial De signs, promulgated on 22 January 2003.  Only new
industrial designs, i.e. designs not disclosed to the public through publication or use prior to the
priority date, could be registered under the new Law.  Protection did not extend to parts of a designdictated essentially by technical considerations.  Industrial designs contrary to public order or
morality could not be registered.  Applications for registration were to be submitted to the Ministry of
Industry, Mines, and Energy, and the priority date was the date of filing or first claim.  Applications
had to be published to afford an opportunity to oppose the registration.  Protection was provided for 5
years and could be renewed twice.  Industrial designs could be transferred or licenced.  The owner hadthe exclusive right to request the competent authority to take action against infringements and could
claim compensation.
184. A Member invited Cambodia to specify how Cambodia's legislation complied with the
provisions of Article 26.1 of the TRIPS Agreement concerning the right of an industrial design holder
to prevent the importation of articles bearing or embodying a protected design.  The representative ofCambodia replied that Cambodia's legislation guaranteed the right for the holder to prohibit thirdWT/ACC/KHM/21
Page 40
persons from "exploiting" a registered industrial design, i.e. by making, selling, or importing articles
incorporating the industrial design (Section 42.1 of the draft Law).
(e) Patents
185. The representative of Cambodia said that the Law on Patents, Utility Models and Industrial
Designs had been promulgated on 22 January 2003.  Drafting of implementing regulations under this
Law would commence in the first quarter of 2003.  The Law afforded patent protection to inventions
which involved an inventive step and were industrially applicable.  Patents could not be issued for
discoveries, scientific theories and mathematical methods;  schemes, rules and methods for doing
business, performing intellectual activities, or playing games, and computer programs;  diagnostic,
therapeutic and surgical methods for the treatment of human beings and animals;  inventions contrary
to public order or morality;  and biological methods for breeding plants and animals, other than
microbiological methods, as well as products derived from these methods.  In response to a specificquestion concerning the exclusions, he added that th e algorithms used in computer programs, not the
programmes per se,  were ineligible for patent protection, and that "schemes or methods for doing
business" were only ineligible for patent protection to the extent that they were lacking industrial
application.  These distinctions would be clarified in the implementing regulations to the Law.
186. Applications for registration were submitted to the Ministry of Industry, Mines, and Energy,
and priority was given to the person having first filed an application or claimed priority to the patent.
Patent applications were subject to mandatory examination as to form and substance.  Patents were
granted upon expiration of an 18 month period starting on the priority date and protection was
provided for 20 years from the filing date.  The patent holder had the exclusive right to transfer or
licence a patent and to request third persons to stop infringement, and could claim compensation.Provisions on compulsory licensing, contained in Articles 47-62 of the Law on Patent, Utility Models
and Industrial Designs, could be applied following three years of non-use of a patent, or if a patented
product had not been offered for sale in sufficient quantity to supply the Cambodian market without
valid reason, but only for use predominantly for the supply of the domestic market.
187. Specifically concerning action against counterfeit pharmaceuticals, he noted that right-holders
could use provisions in the Law on the Management of Pharmaceutical Products to protect their
lawful rights.  Aware of the distinction between counterfeit and generic products, he noted that in the
case of importation of counterfeit medicines, right holders could seek protection of their rights under
the Trademark Law and/or the provisions of the Law on the Management of Pharmaceutical Products.
Article 12 of the latter provided for criminal penalties - fines of Riels 20 million to 50 million, and
prison terms ranging from 5 to 10 years - for knowingly producing, importing, exporting, distributing
or selling unregistered narcotic drugs or pharmaceuticals that were counterfeit, of sub-standard qualityor expired, and thus having an adverse effect on human health.
(f) Plant variety protection
188. The representative of Cambodia said that plant varieties had been excluded from the Law on
Patent, Utility Models and Industrial Designs.  Thus, Cambodia did not provide plant variety
protection at present, but a draft Law on Plant Variety Protection was in preparation with theassistance of UPOV.  Promulgation of the Law was at present foreseen in 2005.
(g) Layout designs of integrated circuits
189. A Member noted that Cambodia's patent utility law did not appear to contain any provisions
for the protection of layout-designs as required by Article 35 of the TRIPS Agreement, and sought
confirmation that these provisions were or would be provided for in a separate law.WT/ACC/KHM/21
Page 41
190. The representative of Cambodia said that the subject-matter would be protected through a
new Law on Layout Designs of Integrated Circ uits.  Cambodia was presently seeking technical
assistance on this topic.
(h) Requirements on undisclosed information, including trade secrets and test data
191. The representative of Cambodia said that Ar ticle 128 of the Law on Patent, Utility Models
and Industrial Designs provided protection for undisclosed data.  In addition, Cambodia would
prepare and adopt a separate Law on the Protection of Undisclosed Information and Trade Secrets.
The Law was planned for adoption by the National Assembly in 2004 and promulgation in 2005.
3. Measures to control abuse of intellectual property rights
192. The representative of Cambodia said that current measures to control abuse of intellectual
property rights were based on the Provisions Re lating to the Judiciary and Criminal Law and
Procedure Applicable in Cambodia During the Transitional Period of 10 September 1992, and
Declaration No. 368 of 15 December 1997 concerning measures to control abuse of intellectual
property rights in Cambodia.  In  addition, new laws such as the Law on Marks, Trade Name and Acts
of Unfair Competition, the Law on Copyright and Related Rights and the Law on Patents, Utility
Models and Industrial Designs contained provisions concerning the non-performance of obligations,
such as failure to pay maintenance fees, or failure to use registered trademarks or patents for theperiod determined by the law, which could result in nullification of the protection or the granting of a
licence to a third person or administrative body with a view to supplying the domestic market.
4. Enforcement
(a) General obligations
193. The representative of Cambodia said that Cambodia's draft laws on intellectual property
would comply fully with the provisions of Article 41 of the TRIPS Agreement concerning the
availability of enforcement procedures under domestic legislation, the existence of fair and equitable
procedures, and the opportunity for parties to proceedings to obtain the review of final administrative
decisions and initial judicial decisions by a judicial authority.
(b) Civil judicial procedures and remedies
194. The representative of Cambodia said that provisions on civil judicial procedures and remedies
had been included in the draft Civil Code, Civil Procedure Code and specific intellectual property
laws currently in preparation.  Implementing regulations for these laws and codes were under
consideration.  The Civil Procedure Code would include procedures concerning civil judgement,
execution and provisional measures, and intellectual property legislation would cover provisions for
remedies and provisional measures.  Enforcement authorities would comprise Courts, Customs, as
well as CAMCONTROL, an organisation under the au thority of the Ministry of Commerce, and the
Economic Police, both in charge of fraud repression and inspections of exported and imported goods.
Under the new regulations, courts - including muni cipal and provincial courts – would have the
authority to handle cases of abuse of intellectual property rights, disputes over royalties and
remuneration, violation of authors and application rights, and disputes related to the transfer and
licensing of rights.  The injured party could seek court injunctions to stop infringement and claimcompensation for damages.  The amount of damages would be calculated on a case-by-case basis.
Addressing a query by a Member regarding the factors used by the Courts to determine the damages
in the absence of specific legislation on this issue, the representative of Cambodia said that the
calculation was based on the value of the benefits lost because of the infringement and on the duration
of the infringement act.  He added that this matter was currently being discussed among judges andWT/ACC/KHM/21
Page 42
relevant authorities, although the elaboration of guidelines in assessing damages and imposing
remedial measures was currently not being considered.  The Civil Code and the Civil Procedure Code
would provide the legal authority, though no detailed  provisions, for the award of damages and other
remedial measures.  He nevertheless believed that Cambodia's current IPR legislation and its future
laws were, and would remain, in full compliance with the requirements of Article 48 of the TRIPSAgreement with respect to the indemnification of the defendant.
195. Courts had the authority to order that documents be produced (Article 152 of the draft Civil
Procedure Code), and failure to do so would lead the Court to consider the other party's allegations to
be true (Article 153), and to impose a fine on the impeding party (Article 154).  Confidential
information was protected under Article 42 of the Trademarks Law and Article 128 of the draft
Patents Law.  A general provision referring to specific legislation was included in Article 115.1 of the
draft Civil Procedure Code.
196. A Member voiced concern about Cambodia's effort s to ensure compliance with Article 48 of
the TRIPS Agreement regarding the indemnification of  the defendant, including appropriate attorney's
fees.  In response to a specific concern, the representative of Cambodia said that draft legislation had
not provided judicial and administrative officials th e authority to order infringers to provide right
holders with information on third parties involved in the production and distribution of infringinggoods, as mentioned in Article 47 of the TRIPS Agreement, but investigative judges (including
Customs and other competent authorities) could request infringers to submit such information to the
Court in the case of criminal procedures, and the issue was addressed in Article 42 (second paragraph)
of the Law on Marks, Trade Name and Acts of Unfa ir Competition.  He confirmed that decisions on
the merits in Court proceedings were provided in writing and made available to the public throughpublication in newspapers, and added that his Government was also considering the publication of
Court decisions in the Official Gazette of the Ministry of Commerce.
(c) Provisional measures
197. The representative of Cambodia said that courts and authorities responsible for administrative
enforcement of intellectual property legislation had the authority to order prompt and effectiveprovisional measures based on prima facie  evidence to prevent an infringement and preserve relevant
evidence.  Pursuant to Article 30a of the Law on Marks, Trade Name and Unfair Competition, there
was prima facie  evidence when there were reasonable grounds to believe that an infringement was
taking place.  Applicable provisional measures included detention of material evidence and facilities,
search for concealed materials and facilities, order to stop an infringement, confiscation of the
infringing goods, and temporary seizure of the goods  with a view to ensuring proper compensation.
(d) Administrative procedures and remedies
198. The representative of Cambodia said that under the new regulations the authorities competent
to apply administrative measures and remedies were the Market Control sections of the Ministry of
Commerce, Ministry of Industry, Mines, and Energy, and Ministry of Culture and Fine Arts;  Customs
offices;  and the Economic Police.  Administrative measures and remedies included warning,
monetary fines up to 25 million Riels (about US$6,000), seizure of material evidence and facilities,destruction of infringing goods, and compensation for damages.  Pursuant to the Law on Marks, Trade
Name and Acts of Unfair Competition and the draft Law on Copyrights and Related Rights,
competent authorities had the power to issue injuncti ons to order a party to stop an infringement and
to suspend clearance of goods, as stipulated in Ar ticle 44.1 of the TRIPS Agreement, but did not have
the authority to order infringers to provide right holders with information on third parties involved in
the production and distribution of infringing goods.  They could however acquire such information
themselves.  The Law on Marks, Trade Name and Acts of Unfair Competition (Article 46) and the
Law on Copyright and Related Rights (Article 59) prohibited the re-exportation of counterfeit orWT/ACC/KHM/21
Page 43
pirated goods and conferred customs and other competent authorities the power to destroy infringing
goods upon a court decision.  Infringing goods could not be destroyed without a court order.
(e) Special border measures
199. The representative of Cambodia said that the draft Law on Customs did not include
provisions on border measures as required by Article 51-60 of the TRIPS Agreement.  The necessaryborder measures had been incorporated in the Law on Marks, Trade Names and Acts of Unfair
Competition (Articles 35-47).  In addition, the Law on Copyrights and Related Rights (Article 63)
included, by reference, all border measures included in the Law on Marks, Trade Names and Acts of
Unfair Competition.  He saw no need to consolidate these measures in the new Law on Customs, as
the draft Law (Article 8) explicitly required the customs authorities to execute all laws of Cambodia,
and this provision would be underpinned by a s ub-Decree to be prepared by the Department of
Customs and Excises, in collaboration with the Ministries responsible for the protection of intellectualproperty.
200. Cambodia's legislation provided for seizure, forfeiture and destruction of infringing goods,
evidences, copies and equipment used in the creation of infringing goods, and prohibited the re-
exportation of counterfeit trademark goods or use of different customs procedures.  Under the new
regulations, customs authorities were allowed to inform right holders about the possible importationor exportation of infringing goods.  The right holder could apply to the customs authorities to suspend
clearance of the suspected goods.  The application should include a detailed description of the goods.
The customs authorities were obliged to inform th e right holder of the measures taken, and should
cancel the measures if no proceedings had been initiated within 10 days.  The right holder was liable
for any damages resulting from an unsubstantiated application.  In case of prima facie  evidence,
customs authorities could suspend clearance of suspected goods on their own initiative, and should
immediately inform the right holder of the place and date of suspension.
(f) Criminal procedures
201. The representative of Cambodia said that infringement of intellectual property was liable to
criminal prosecution pursuant to the Law on Mark s, Trade Names and Acts of Unfair Competition
(Articles 63 though 68), the Law on Patent, Utility Models and Industrial Designs (Articles 132 and
133), and the Law on Copyright and Related Rights (Articles 64 and 65).  Criminal infringement
cases were punishable with fines of up to 25 m illion Riels (about US$6,000) and/or prison sentences
ranging from one to 60 months.  The maximum penalties were doubled for second offences
committed within five years from the date of the first conviction.  Implementing regulations to the
laws would specify the circumstances under which these criminal penalties would be imposed.  In
case of sale, distribution and importation of counterfeit pharmaceuticals, provisions in the Law on theManagement of Pharmaceuticals could also be applied to impose criminal penalties and protect the
rights of the right-holders.
202. The representative of Cambodia confirmed that implementation of the TRIPS Agreement by
Cambodia would proceed in accordance with the revised Action Plan circulated in document
WT/ACC/KHM/16/Rev.1, and summarized in Table 12.  Urged by a Member to accelerate work onthe of the new Civil Procedure Code, which underpinned the enforcement of other laws, the
representative of Cambodia said that the draft Civil Procedure Code had been completed and would
be submitted to the Council of Ministers in the near future.
203. Having reviewed Cambodia's Action Plan for compliance with the requirements of the TRIPS
Agreement, a Member sought a realistic plan laying out the measures that Cambodia would take overtime to bring its regime into compliance with specific provisions of the TRIPS Agreement as soon as
possible.  The plan would constitute an understanding between Cambodia and the Working Party onWT/ACC/KHM/21
Page 44
how Cambodia would use the transition period, and form a blueprint for the technical assistance
making compliance possible within the timeframe contemplated.  Cambodia should also provide
specific assurances on its application of measures covered by the TRIPS Agreement during any
transition period approved by the Working Party.  TRIPS-consistent measures already in place should
not be subject to transitions, and Articles 3, 4 and 5 of the TRIPS Agreement, providing for inter alia
national treatment and MFN treatment, should apply from the date of accession.  Moreover,
Cambodia should not allow production of goods or works inconsistent with the substantive provisions
of the TRIPS Agreement during the transition period.
204. The representative of Cambodia thanked the Working Party members for their support and for
their pledges of technical assistance.  For the reasons given above, the Government of Cambodia
requested that the Working Party grant a transitional period to 1 January 2007 to obtain technical
assistance and equip the administration to implement fully the obligations of the TRIPS Agreement.The representative of Cambodia confirmed that should a transition be granted for the implementation
of the WTO Agreement on TRIPS, his government was prepared to undertake the following
commitments.  During the transition periods in th e Action Plan for full implementation of the TRIPS
Agreement, Cambodia will fully apply Articles 3, 4 and 5 of the Agreement that provide for, inter
alia, national treatment and MFN treatment under current legislation in place.  Cambodia will alsoensure that any change made in its laws, regulations and practice during this period will not result in a
lesser degree of consistency with the provisions of the TRIPS Agreement that existed on the date of
accession.  In addition, Cambodia will not grant patents, trademarks, or copyrights, or marketing
approvals for pharmaceuticals or agricultural chemicals inconsistent with the provisions of the TRIPS
Agreement.
205. The representative of Cambodia further confirmed that, should a transition be granted, his
government would ensure that existing rates of in fringement would not significantly increase and that
any infringement of intellectual property rights would be addressed immediately in cooperation with
the assistance from affected right holders.  He further confirmed that during the transition period, that
Cambodia would protect against unfair commercial us e of undisclosed test or other data submitted in
support of applications for marketing approval of pharmaceutical or of agricultural chemical products
which utilize new chemical entities, by providing that no person other than the person who submitted
such data may, without the permission of the latter person, rely on such data in support of an
application for product approval for a period of at least five years from the date on which Cambodia
granted marketing approval to the person that produ ced the data.  Prior to the issuance of marketing
approval of any pharmaceutical and agricultural chemical products, the relevant Ministries in
Cambodia will determine the existence of a patent covering a product for which an application formarketing approval had been filed by a party other than the patentee, and will not approve such
application for marketing approval until the date of the expiration of such patent.  He added that
Cambodia would seek out all available technical assist ance to ensure that its capacity to fully enforce
its TRIPS-consistent legal regime upon expiration of the transition periods is assured and that
Cambodia would make available all legislation in draft and promulgated form to WTO Members sothat advice on TRIPS-consistency can be obtained.   In response to requests from delegations for more
specificity, the representative of Cambodia presented an Action Plan setting out details of the steps
that still remained to be taken in order to ach ieve this objective and a timetable for each step
(Table 12).WT/ACC/KHM/21
Page 45
Table 12:  Action Plan for Implementation of the
Agreement on Trade-Related Aspects of Intellectual Property Rights
Action Deadline
Promulgation of the Law on Marks, Trade Name and Acts of Unfair Competition of
7 February 2002
Law on the Management of PharmaceuticalsMembership in:
- WIPO (since 1995)
- the Paris Convention (since 1998)2002 or before
Promulgation of :
- Law on Patents, Utility Models and Industrial Designs of 22 January 2003
- Law on Copyright & Related Rights.
Membership in:
- the Berne Convention
- Geneva Phonogram Convention- Brussels Satellite Convention- the Patent Cooperation Treaty
Implementation of the Sub-Decree and implementing regulations for Laws on Marks,
Trade Name and Acts of Unfair Competition
Capacity building for key IP personnel in the field of trademarks2003
Review of all relevant texts by Working PartyPrior to date of
accession
Promulgation of
- Law on Geographical Indications
- Civil Code
Implementation of Sub-Decree and implementing regulations for Laws on Copyrights &
Related Rights; Patents, Utility Models and Industrial Designs.
Capacity building for key IP personnel in the field of copyrights; Patents, Utility Models
and Industrial Designs.Not later than
1 January 2005WT/ACC/KHM/21
Page 46
Action Deadline
Promulgation of :
- Law on Layout Design of Integrated Circuits.
- Laws on Protection of Undisclosed Information and Trade Secret- Law on Plant Variety Protection.- Civil Procedure Code
- Criminal Code
Membership in the International Convention for the Protection of New Varieties of PlantsImplementation of Sub-Decree and implementing regulations for :
- Law on Geographical Indications
- Law on Protection of Undisclosed Information and Trade Secret.
Capacity building for key IP personnel in the fields of Geographical Indications, and
Protection of Undisclosed Information and Trade SecretNot later than
1 January 2006
Implementation of Sub-Decree and implementing regulations for:
- Law on Layout Design of Integrated Circuits
- Law on Plant Variety Protection.
Capacity building for key IP personnel in the fields of trademarks;  copyrights;  patents,
utility models, and industrial design;  geographical indications;  protection of undisclosedinformation and trade secret;  layout design of integrated circuits;  and plant variety
protection.
Establishment of any necessary additional legislation and regulations to provide a legal
basis for enforcement mechanisms.No later than
1 January 2007
Full implementation of the Agreement on Trade-Related Aspects of Intellectual PropertyRightsNo later than
1 January 2007
206. The representative of Cambodia confirmed that Cambodia would apply the Agreement on
Trade-Related Aspects of Intellectual Property Rights no later than 1 January 2007 according to theAction Plan in Table 12 with the understanding that during this period protection for intellectual
property rights listed in paragraphs 204 and 205 would be applied in Cambodia.  The Working Party
took note of this commitment.
Policies affecting trade in services
207. The representative of Cambodia said that the services industry, which was dominated by
private sector, had accounted for approximately 40 per cent of Cambodia's GDP in 1999, having
grown about six per cent per year between 1995 and 1999.  The legal framework was still under
development, and a number of services sectors remained to be regulated.  Information based on the
services sectoral classification list was pr ovided in document WT/ACC/KHM/2, Annex 7A.
208. He added that Cambodia's legislation generally complied with the principles and provisions of
the General Agreement on Trade in Services (GATS).  Foreign ownership of newspapers was limited
to 20 per cent of the total number of newspapers in the Khmer language.  Companies owned by
foreigners could not own land.  The number of foreign nationals to be employed in a particular
establishment or services sector was limited to 10 per cent of the workforce and only available to
residents of Cambodia.  The Ministry of Labour could authorize a higher percentage of foreignemployment where specific skills were not available in the domestic market.  Pursuant to theWT/ACC/KHM/21
Page 47
Cambodian Law on Bar adopted on 15 June 1995, foreign lawyers could not represent clients, conduct
activities to attract clients, or publish commercial advertisements.  They were, however, permitted to
work in commercial association with Cambodian lawyers.  The commercial association requirement
does not apply when legal services are provided in the areas of foreign and international law.
209. In 1989, Cambodia had replaced a mono-type banking system by a two-tier system
comprising the central bank and commercial banks.  Foreign banks had been authorised in Cambodia
since 1991.  The Law on Banking and Financial In stitutions, promulgated in 1999, governed all
financial operations, except insurance.  As of  31 December 2002, the banking sector in Cambodia
included 13 commercial banks, one of which was a State-owned bank, nine privately-owned banks,
and three foreign-owned banks (two of which were subsidiaries).  The banking sector also comprised
four specialized banking institutions, which could on ly engage in lending activities aimed at providing
rural credit and support to small and medium sized enterprises.  The Rural Development Bank, whichdistributed funds received from donors, was one of these institutions.  In addition, a large number of
micro-finance institutions (around 90) were also operating in Cambodia.  These institutions were non-
governmental organizations engaging in humanitarian activities and focusing on poverty reduction in
line with the policy introduced by his Government in 2000.  The micro-finance institutions provided
some credit and promoted savings, especially among their members.  He stressed that commercialbanking was the main banking activity in Cambodia.  The other institutions were marginal, and
existed due to the unwillingness of commercial banks to provide such specialized services in
Cambodia.  The Law on Banking and Financial Institutions and subsequent regulations guaranteed
foreign banks rights and obligations equal to local banks and there was no restriction regarding
foreign ownership of banks.  A list of laws a nd regulations concerning the banking sector was
provided in document WT/ACC/KHM/2, Annex 2, section 5.
210. The insurance sector had been regulated by the Law on the Establishment of Insurance
Industry of 8 February 1992, the sub-Decree on the Creation of the State-Owned Insurance Company
of 20 September 1990, the sub-Decree on the Control of Insurance Activity of 9 June 1992, and the
Notice of the Government of 22 September 1992.  A new Insurance Law had been promulgated in2000, and an Insurance sub-Decree to implement the Insurance Law had been adopted in 2001.  The
Law and the sub-Decree established the general framework for the setting-up of insurance companies,
including minimum capital requirements and solvency  margins.  Several private companies, including
foreign insurance companies, competed in the non- life insurance market.  The market also included
CAMINCO, a State-owned insurance company ope rating on an equal commercial basis and in
competition with the other insurance companies.  All licensed insurance companies could provide all
types of insurance products, including reinsurance.  However, according to the Insurance sub-Decree,all insurance companies were required to re-insure 20 percent of their total risks in Cambodia.  In
addition, all insurance contracts with a total sum insured of US$500,000 or less had to be reinsured
locally with any of the insurance companies operating in Cambodia.  Insurance companies were free
to choose where and with which company to reinsure all other risks.
211. Government monopolies existed in the supply of postal services for transported mail
weighing less than 500 grams, advertising (to e xpire in 2003), railway transport, electricity
distribution, and water supply.  Preferential credits were being provided to Electricité du Cambodge
and to water supply services.  Exclusive suppliers were present in the wholesale distribution sector.
The representative of Cambodia said that Cambodia's authorities were acting in accordance with
Article VIII of the GATS to ensure that monopolies and exclusive service suppliers would not abusetheir monopoly position outside the scope of their monopoly rights.
212. In the telecommunication sector, the Ministry of Posts and Telecommunications of the
Kingdom of Cambodia (MPTC) was responsible for operating telecommunication services and
facilities, and issuing licenses.  During 1990s, the market had been opened progressively to foreign
investors in the form of joint ventures delivering international telecommunications and Internet, radio,WT/ACC/KHM/21
Page 48
and mobile cellular services.  According to a new law in preparation, Cambodia envisaged to establish
an independent regulatory body providing for more tr ansparency in the delivery of licences.  The new
law was expected to be ready for submission to the Council of Ministers by 2004.  Additional time
would be needed for its adoption and implementation.
213. Concerning the establishment of enquiry points foreseen in Article III:4 of the GATS, the
representative of Cambodia said that information on  trade in services was available from the ASEAN
and International Organizations Department at the Ministry of Commerce.
Transparency
Publication of information on trade
214. Concerning the transparency requirements prescribed in Article X of the GATT, Article III of
the GATS and other WTO Agreements, the representative of Cambodia said that Article 93 of
Cambodia's Constitution required laws to be published in the Official Journal and brought to theknowledge and attention of the population before enteri ng into force.  According to Article 93 of the
Constitution, all laws and other regulations were published in the Official Journal, in the Khmer
language, and entered into force 10 days after their publication in Phnom Penh and 20 days in the rest
of the country.  Implementing decisions of the Mi nistries were also published, and Cambodia would
ensure that all regulations would be included per GATT Article X:1.  The date of entry into force wasstipulated in each law.  As to the establishment of enquiry points stipulated in Article III of the
General Agreement on Trade in Services, he confirmed that Cambodia had set up operational enquiry
points in conformity with the requirements of the WTO Agreements on GATS, TBT and SPS.
215. A Member stated the Official Journal was onl y available by subscription, and many private
sector entities seemed unaware of its existence.  Although all laws appeared to be published in theJournal, some new regulations had been omitted.  This Member suggested that Cambodia might
consider posting its Official Journal on the internet to improve access to new laws and regulations,
and would welcome other practical steps taken by  Cambodia to ensure proper publication of new
regulations in the Official Journal.  This Member also asked to what extent Article 93 of the
Constitution or other laws or regulations required the publication prior to enactment orimplementation of regulations, judicial decisions and administrative rulings of general application to
be published similarly "in such a manner as to enable governments and traders to become acquainted
with them" as required by Article X of the GATT, and what steps Cambodia had taken to implement
the transparency measures required by specific WTO Agreements.
216. In response, the representative of Cambodia stated that Cambodia intended to provide a
reasonable period, i.e. no less than 30 days, for comment to the appropriate authorities before
measures pertaining to or affecting trade in goods, services and TRIPS are adopted, except for thoseregulations and other measures involving national emergency or security, or for which the publication
would impede law enforcement.  The publication of such regulations and other measures would
include the effective date of these measures and, where appropriate or possible, list the products and
services affected by the particular measure, identified by appropriate tariff line and classification.  He
added that Cambodia would post the contents of curre nt and past editions of the Official Journal on
the government website and keep them current.
217. The representative of Cambodia confirmed that from the date of accession all laws,
regulations, decrees, judicial decisions and administrative rulings of general application related to
trade would be published in a manner that fulfils WTO requirements.  As such, no law or regulation
related to international trade would become effective prior to such publication in the Official Journal.He further stated that all laws which were amended to comply with the WTO Agreements contained
provisions which require such publication.  Decrees, sub-Decrees and Prakas affecting internationalWT/ACC/KHM/21
Page 49
trade would be published in the Official Journal.  Cambodia’s Constitution and the laws currently in
place or listed in the Attachment as slated for near-term enactment would implement fully Article X
of the GATT 1994 and the other transparency requirements in WTO Agreements requiring
notification and publication.  He further confirme d that by 1 January 2004, Cambodia would establish
or designate an official journal or website, published or updated on a regular basis and readilyavailable to WTO Members, individuals and enterprises, dedicated to the publication of all regulations
and other measures pertaining to or affecting trade in goods, services, and TRIPS.  The Working Party
took note of these commitments.
Notifications
218. The representative of Cambodia said that at the latest twelve months after the entry into force
of the Protocol of Accession, Cambodia would submit all initial notifications required by any
Agreement constituting part of the WTO Agreement.  Any regulations subsequently enacted byCambodia which gave effect to the laws enacted to implement any Agreement constituting part of the
WTO Agreement would also conform to the requirements of that Agreement.
Trade agreements
219. The representative of Cambodia said that the signing of the Paris Peace Agreement in 1991
and the 1993 elections had allowed Cambodia to rejoin the international community and participate inmultilateral and regional institutions.  Thus, Cambodia was now a member of institutions such as the
International Bank for Reconstruction and Development;  the International Monetary Fund;  the Asian
Development Bank;  the International Developm ent Association;  the Multilateral Insurance
Guarantee Agency;  the United Nations Development Programme;  the United Nation Conference on
Trade and Development;  the Food and Agriculture Organization;  the International Fund forAgricultural Development;  the International Civil Aviation Organization;  the World Intellectual
Property Organization;  the International Standard s Organization;  the World Health Organization;
the International Maritime Organization;  the International Telecommunications Union;  the United
Nations Educational, Scientific and Cultural Organization;  the World Tourism Organization;  the
Economic and Social Commission for Asia and the Pacific;  and the Paris Convention for theProtection of Industrial Property Rights.
220. Since 1993, Cambodia had concluded 24 agreements and memoranda of understanding
relating to economic cooperation, foreign trade, promotion and protection of investment and
intellectual property rights protection with 13 countries, including China, Indonesia, Malaysia, the
Lao PDR, Viet Nam, Thailand, the Russian Federation, the United States, the Philippines and the
European Union.  The bilateral trade agreements did not include preferential arrangements, but
contained provisions granting MFN treatment on a general or specific basis (details are provided indocument WT/ACC/KHM/2, pages 91-93).  In a ddition, Cambodia had concluded a Memorandum of
Mutual Cooperation on Intellectual Property with Thailand;  an Investment Incentives Agreement
with the United States;  an Agreement on Cultural and Scientific Cooperation with the Russian
Federation;  an Agreement on Economic, Scientific and Technical Cooperation with Malaysia;  as
well as transit agreements with Lao PDR and Viet Nam.
221. Cambodia had joined the Association of South-East Asian Nations on 30 April 1999, which
implied automatic accession to the ASEAN Free Trade Area (AFTA).  Together with the other
members of ASEAN, Cambodia had accepted the Agreement on the Common Effective Preferential
Tariff Scheme for the ASEAN Free Trade Area (CEPT), whereby the tariffs applicable to ASEAN
products would be reduced to 0-5 per cent over a ten year period starting on 1 January 2000.Cambodia's Inclusion List (IL), Te mporary Exclusion List (TEL), Sensitive List (SL) and General
Exception List (GEL) had been endorsed by the 13
th AFTA Council and the 31st ASEAN Economic
Ministers Meeting in October 1999.  At the third ASEAN Informal Summit in November 1999,WT/ACC/KHM/21
Page 50
Cambodia had agreed to eliminate tariffs on essentially all ASEAN products by 2015.  In addition to
tariffs, the ASEAN framework also covered areas such  as customs, industrial cooperation, intellectual
property cooperation, services, economic cooperat ion, promotion and protection of investment,
energy cooperation, facilitation of goods in transit, mutual recognition, etc.
222. The representative of Cambodia confirmed that the ASEAN Free Trade Area was the only
free trade area to which Cambodia was a member, a nd that Cambodia did not grant trade preferences
to any trading partner outside the ASEAN framework.   Asked to provide the texts of the FTAs, the
representative of Cambodia said that the Agreements related to AFTA would be submitted to the
Working Party if members were unfamiliar with them.  Statistical data on Cambodia's preferential
trade was not yet available.
223. The representative of Cambodia confirmed that Cambodia would observe all WTO
provisions, including those of Article XXIV of the GATT 1994 and Article V of the GATS in thetrade agreements to which it belongs, and would ensure that the provisions of these WTO Agreements
for notification, consultation and other requirements concerning free trade areas and customs unions
of which Cambodia was a member were met from th e date of accession.  He confirmed that Cambodia
would, within 12 months after accession, submit notifications and copies of the Free Trade Area and
Customs Union Agreements to which it belongs to the Council for Trade in Goods for transmittal tothe Committee on Regional Trade Agreements (CRTAs) for review.  The Working Party took note of
this commitment.
Conclusions
224. The Working Party took note of the explanations and statements of Cambodia concerning its
foreign trade regime, as reflected in this Report.   The Working Party took note of the commitments
given by Cambodia in relation to certain specific matters which are reproduced in paragraphs 25, 27,
36, 50, 55, 59, 62, 71, 77, 82, 93, 96, 99, 105, 108, 115, 120, 122, 131, 142, 144, 149, 151, 158, 164,
166, 206, 217 and 223 of this Report.  The Working Party took note that these commitments had been
incorporated in paragraph 2 of the Protocol of Accession of Cambodia to the WTO.
225. Having carried out the examination of the foreign trade regime of Cambodia and in the light
of the explanations, commitments and concessions made by the representative of Cambodia, the
Working Party reached the conclusion that Cambodia be invited to accede to the Marrakesh
Agreement Establishing the WTO under the provisions of Article XII.  For this purpose, the Working
Party has prepared the draft Decision and Protocol  of Accession reproduced in the Appendix to this
Report, and takes note of Cambodia's Schedu le of Concessions and Commitments on Goods
(document WT/ACC/KHM/21/Add.1) and its Schedule of Specific Commitments on Services
(document WT/ACC/KHM/21/Add.2) that are annexed to the draft Protocol.  It is proposed that thesetexts be adopted by the Ministerial Conference when it adopts the Report.  When the Decision is
adopted, the Protocol of Accession would be op en for acceptance by Cambodia which would become
a Member thirty days after it accepts the said Protocol.  The Working Party agreed, therefore, that it
had completed its work concerning the negotiations for the accession of the Kingdom of Cambodia to
the Marrakesh Agreement Establishing the WTO.
_______________WT/ACC/KHM/21
Page 51
ANNEX I
Laws, Regulations and Other Information Provided to the Working Party by Cambodia
1. Financial Blueprint of the Royal Government of Cambodia (2001-2010);
2. "Law on Taxation" of 8 January 1997;
3. Preah Reach Kram on the "Law on Foreign Exchange", No. CS/RKM/0897/03 of 22 August
1997;
4. Preah Reach Kram (Royal Decree) on the "Law on the Organisation and Functioning of the
National Bank of Cambodia", No. 0196/27 of 26 January 1996;
5. National Bank of Cambodia Prakas on the "Accounting Process for Foreign Currency
Transactions", No. NBC/B700/50 of 17 February 2000;
6. Draft Law on Negotiable Instruments and Payment Transactions dated September 2002;
7. "Law on the Investment of the King dom of Cambodia" of 4 August 1994;
8. Draft Amendment of the Law on Investment dated 29 March 2002;
9. Kingdom of Cambodia Anu-Kret on the "Impleme ntation of the Law on Investment of the
Kingdom of Cambodia", No. 88/ ANK/BK of 29 December 1997;
10. Anu-Kret (Sub-Decree) on the "Organiza tion and Functioning of the Council for
Development of Cambodia (CDC) of 26 June 1995;
11. Kingdom of Cambodia Anu-Kret on the "Amend ment of Anu-Kret No. 51/ANK/BK on the
Organization and Functioning of the Council for the Development of Cambodia", No.
048/ANK/BK of 21 May 1999;
12. Council for the Development of Cambodia (CDC ), Cambodian Investment Board (CIB) and
Department of Investment Procedures a nd Law "Document Required to Apply for the
Cancellation of an Investment Enterprise from the CIB Investment List", "Document
Required for an Investment Enterprise Application for Shares Transfer and Deposit of a New
Memorandum and Articles of Association", "Document Required to Apply for Name Change
of an Investment Enterprise", "Document Re quired to Apply for Location Change of the
Investment Enterprise" of 21 August 1998;
13. Kingdom of Cambodia Council for the Development of Cambodia Sechdkey Chun Damneng
(Notice) on the "Obligations to Provide Information Regarding the Import and Export
Activities of Investment Enterpri ses", No. 1538/99 CDC of 1 July 1999;
14. Kingdom of Cambodia Anu-Kret on "Measures Re stricting Certain Investment Sectors", No.
80/ANK/BK of 27 August 1999;
15. Kingdom of Cambodia Council for the Development of Cambodia "Notification on
Requirement to all Foreign Entities Accompany with Evidence of Innocence for FillingApplication Form", No. 2736/99 CDC of 19 November 1999;
16. Kingdom of Cambodia Sarachor Nernoam (Ins tructing Circular) of the Council for the
Development of Cambodia on the "Manag ement and Usage of CDC/CIB Investment
Incentives by Investment Enterprises", No. 165/00 CDC of 20 January 2000;
17. Draft Insolvency Law;
18. Revised Draft Insolvency Law dated July 2002;
19. Kingdom of Cambodia Sechdkey Chun Damn eng (Notice) of the Council for the
Development of Cambodia on the "Payment of Tax Debt Owed by Investment Enterprises in
the Kingdom of Cambodia", No. 538/00 CDC of 22 February 2000;
20. Kingdom of Cambodia Sarachor Nernoam (Circular) of the Council for the Development of
Cambodia on "Procedures for Non-Performing Investment Enterprises", No. 748/00 CDC of
15 March 2000;
21. Kingdom of Cambodia Schdey Chun Damneng (Notification) of the Council for the
Development of Cambodia on "Investment En terprises", No. 822/00 CDC of 23 March 2000;
22. Land Law (Unofficial English Translation);
23. Draft Law of Personal Property Leasing;
24. Explanatory Notes to the Law of Co mmercial Contracts of April 2001.WT/ACC/KHM/21
Page 52
25. "Law on the Chambers of Commerce" of 16 May 1995;
26. National Bank of Cambodia Prakas on the "Management of Gemstone and Valuable Metal
Businesses", No. NBC/999/100 of 10 September 1999;
27. Kingdom of Cambodia Anu-Kret on the "Creat ion of a National Permanent Commission for
Coordinating the Privatization and the Promot ion of Rubber Plantations", No. 52/ANK/BK of
6 September 1994;
28. Kingdom of Cambodia Anu-Kret on "Build-O perate-Transfer (BOT) Contract", No.
11/ANK/BK of 13 February 1998;
29. Draft Civil Code;
30. Draft Civil Code dated 3 September 2002;
31. Draft Code of Civil Procedure of Cambodia;
32. "Law on the Bar" of 15 June 1995;
33. "Law on Criminal Procedure" of 28 January 1993;
34. Decision on the "Provisions Relating to the Judiciary and Criminal Law and Procedure
Applicable in Cambodia During the Transitional Period" of 10 September 1992;
35. "Law Bearing Upon Commercial Regulations and the Commercial Register" of 3 May 1995;
36. Kingdom of Cambodia Preah Reach Kram "Law  on the Amendments of Articles 10, 11, 14,
16, 17, 21, 22, 25, 26, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 40, 42 and 44 of Chapter 2,
Articles 54, 57 and 58 of Chapter 4 and Articles 59 and 60 of Chapter 5 of the Law on the
Commercial Rules and Commerce Register ", No. NS/RKM/1199/12 of 18 November 1999;
37. Ministry of Commerce Prakas on "Trading Ac tivities of Commercial Companies", No.
017/PRK/MoC of 25 January 2000;
38. Draft Law on Customs dated 15 August 2002;
39. Cambodia's Customs Tariff 2001;
40. Kingdom of Cambodia Prakas of the Council for Development of Cambodia on the
"Provision of Customs Duty Exemption Incentives for Support Industries in Subsequent
Years and Authorization for Shares Transfer", No. 2895/99/CDC of 9 December 1999;
41. "Law on the Management of Pharmaceuticals" of 9 May 1996;
42. Prakas on the "Implementation of the Pre-Sh ipment Inspection Service" of 31 August 2000.
43. Ministry of Commerce Prakas (Declaration) on the "Issuance of the Certificate of Origin,
Commercial Invoice and Export Licence fo r Garments", No. 1437/MOC/PRK of 21 June
1999;
44. Ministry of Commerce Prakas "Amending and S upplementing the Issuance of Certificates of
Origin, Commercial Invoices and Export Li censes for Exported Garments", No. 3414/MOC
of 29 October 1999;
45. Preah Reach Kram on the "Law on the Management of Quality and Safety Products and
Services", No. NS/RKM/0600/001 of 2 June 2000;
46. Kingdom of Cambodia Anu-Kret on "Standards a nd Management of Agricultural Materials",
No. 69/ANK/BK of 28 October 1998;
47. Draft Sub-Decree on Plant Quarantine;
48. Draft Sub-decree on Sanitary Inspection of An imal and Animal Products dated 11 June 2002;
49. Kingdom of Cambodia Anu-Kret on "Forest Ma nagement Concessions", No. 05/ANK/BK of
7 February 2000;
50. Law on Forestry dated August 2002;
51. Kingdom of Cambodia Sechdey Samrech on the "Establishment of Joint Inter-Ministerial
Committee for the Prevention of Illegal Fisheries Infractions on Cambodian Territorial Seas",
No. 18/SSR/RGC of 3 April 2000;
52. Draft Law on Fisheries;
53. Draft Water Supply Law;
54. Draft Water Supply and Sanitation Regulatory Law;
55. Draft Law on Water Resources Management;
56. Draft Law on Copyright and Related Rights;
57. Revised Draft Law on Copyright and Related Rights dated May 2002;WT/ACC/KHM/21
Page 53
58. Draft Patent Utility Law;
59. Draft Law on the Protection of Patents, Utility Model Certificates and Industrial Designs
dated 12 October 2001;
60. Decision on the Establishment of the Inquiry Points for (1) Services, (2) SPS,  (3) TBT, and
(4) Legal compliance with WTO agreements dated 26 July 2002;
61. Law on Corporate Accounts, Their Audit and The Accounting Profession;
62. National Bank of Cambodia Prakas on "Banking License Incorporated Under Domestic Law",
No. Thor.796-153 Bis Pra.Kar of 25 October 1996;
63. Preah Reach Kram on the "Law on Banking and Financial Institutions", No.
NS/RKM/1199/13 of 19 October 1999;
64. National Bank of Cambodia Prakas on the "Struc ture of the Foreign Trade Bank of Cambodia
and Roles/Duties of its Subordinated Offices", No. B8/99/140 of 21 December 1999;
65. National Bank of Cambodia Prakas on "Licensing of Rural Credit Specialized Banks" No.
NBC/B700/05 of 1 January 2000;
66. National Bank of Cambodia Prakas on "the Li censing of Banks", N o. NBC/B700/04 of 10
January 2000;
67. National Bank of Cambodia Prakas on the "Licen sing of Micro-Financing Institutions", No.
NBC/B700/06 of 11 January 2000;
68. National Bank of Cambodia Prakas on "Liquidity for Banks and Micro Financing
Institutions", No. NBC/B700-08 of 9 February 2000;
69. National Bank of Cambodia Prakas on "Banks ' Minimum Capital", No. NBC/B700/39 of 9
February 2000;
70. National Bank of Cambodia Prakas on "Banks ' Solvency Ratio", No. NBC/B700/46 of 16
February 2000;
71. National Bank of Cambodia Prakas on the "Banks' Net Worth Calculation", No.
NBC/B700/47 of 16 February 2000;
72. National Bank of Cambodia Prakas on the "Classification of and Provisioning for Bad and
Doubtful Debts, Including Interest in Susp ense", No. NBC/B700/51 of 17 February 2000;
73. National Bank of Cambodia Prakas on "Controlling Bank's Large Exposures", No.
NBC/B700/52 of 17 February 2000;
74. "Insurance Law" No. NS/RKM/0700/02 of 20 June 2000;
75. Draft Sub-Decree on Insurance dated 21 September 2002;
76. Draft Telecom Act;
77. Draft Tourism Law;
78. Revised Draft Tourism Law dated 23 May 2002;
79. "Law on Nationality" of 20 August 1996;
80. "Law on Immigration" of 26 August 1994;
81. "Labour Law" of 13 March 1997;
82. "Law on the Press" of 18 July 1995;
83. Draft Law of Secured Transactions;
84. Draft Highway Code;  and
85. Royal Decree on the "Law on the Suppression of Gambling", No. NS/R. Decr/0196/28 of
26 January 1996.WT/ACC/KHM/21
Page 54Attachment
Agenda for Enacting Laws for WTO Conformity
Law Agreement(s) Status of Draft Expected Approval Date  (Parliament)
YEAR 2001
1. Ratification of the ICSID Convention General Adopted by the CM; Adopted by the Parliament. 2001
2. Ratification of the New York
Convention (Enforcement of Foreign
Arbitral Awards)General Adopted by the Council of Ministers (CM); Adopted by the
Parliament.2001
3. Land Law General Approved by the CM; Adopted by the Parliament. September 2001
4. Royal Decree on Cooperatives General Adopted by the CM and issued on October 2001. No parliamentary approval
5. Law on Trademarks and Acts of Unfair
CompetitionTRIPS Adopted by the CM in October 2001; Awaiting for
Ratification by the Parliament.December 2001
YEAR 2002
6. Sub-Decree on Inquiry Points for (1)
Services, (2) SPS, and (3) TBTTechnical Barriers to
TradeSanitary andPhytosanitaryMeasuresAdoption by CM expected June 2002. No Parliamentary approval
7. Forestry Law General Adopted by the Parliament in August 2002 August 2002
8. Postal Services Law GATS Adopted at the CM and submitted to the Parliament in
December 2001.20 June 2002
9. Law on Protection of Patent, Utility
Models, and Industrial DesignsTRIPS Adopted by the Parliament in November 2002. December 2002
10. Accounting Law General Adopted by the Parliament. November 2002
YEAR 2003
11. Law on Copyrights and Related Rights TRIPS Adopted by the Parliament in January 2003. February 2003
12. Amendment of the Law on Investment General Adopted by the Parliament in February 2003. February 2003
13. Sub-Decree on Animal Quarantine SPS Adopted by CM in February 2003. No parliamentary approval
14. Sub-Decree on Plant Quarantine SPS Adopted by CM in February 2003. No Parliamentary approval
15. Law on Business Enterprises General Adopted by CM in April 26, 2002 and to the Parliament in
June 2002.November 2003
16. Tourism and Entertainment Law GATS Submission to the CM is expected in March 2003 and to
the Parliament in April 2003.November 2003
17. Negotiable and Payment Transaction
LawGeneral Submission to CM in March 2003 and to the Parliament in
April 2003.December 2003
18. Customs Code Customs Valuation
Rules of Origin
GATT 1994Adapted by the CM in December 2002 and submitted to the
Parliament in January 2003.December 2003WT/ACC/KHM/21
Page 55Law Agreement(s) Status of Draft Expected Approval Date  (Parliament)
19. Land Traffic Law (Highway Code) General Draft completed by the Ministry of Public Works and
Transports; Submission to CM is expected in 2001and tothe Parliament in January 2002.December 2003
20. Water Resources Management Law General Being drafted by the Ministry of Water Resources and
Meteorology; submission to the CM is expected in April2003 and to the Parliament in May 2003.December 2003
21. Water Supply Law General Being drafted by the Ministry of Industry, Mines, and
Energy; submission to the CM is expected in March 2003
and to the Parliament in April 2003.December 2003
YEAR 2004
22. Law on Export Processing Zones
(EPZs)GATT 1994 Draft completed by the Ministry of Industry, Mines and
Energy; Submission to CM is expected in March 2003 andto the Parliament in September 2003.January 2004
23. Commercial Arbitration Law General Submission to CM is expected in February 2003 and to the
Parliament in March 2003.January 2004
24. Civil Aviation Law General Draft completed by  the State Secretariat for Civil Aviation;
Submitted to CM in June 2002 and to the Parliament inDecember 2002.January 2004
25. Insolvency Law General Submission to CM is expected in March 2003 and to the
Parliament in April 2003.January 2004
26. Secured Transactions Law General Submission to CM is expected in October 2003 and to the
Parliament in December 2003.February 2004
27. Commercial Contracts Law General Draft completed by the Ministry of Commerce; Submission
to CM is expected in November 2003 and to the Parliament
in December 2003.February 2004
28. Commercial Leasing Law General Draft completed by the Ministry of Commerce; Submission
to CM is expected in December 2003 and to the Parliamentin January 2004.June 2004
29. Telecommunications Law GATS Draft under review by the Ministry of Post and
Telecommunications; Submission to CM is expected inOctober 2003 and to the Parliament in December 2003.June 2004
30. Fisheries Law SPS Being drafted by the Ministry of Agriculture, Forestry and
Fisheries; Submission to CM is expected in December 2003
and to the Parliament in January 2004.June 2004
31. Law on Layout Designs of Integrated
CircuitTRIPS TA requested by the Ministry of Industry, Mines, and
Energy to prepare draft; Submis sion to CM is expected in
September 2003 and to the Parliament in February 2004.July 2004
32. Law on Plant Variety Protection TRIPS TA requested by the Ministry of Industry, Mines, and
Energy to prepare draft; Submis sion to CM is expected in
March 2003 and to the Parliament in September 2004.September 2004WT/ACC/KHM/21
Page 56Law Agreement(s) Status of Draft Expected Approval Date  (Parliament)
33. Law on Safeguard Measures Safeguards TA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in September 2003and to the Parliament in April 2004. October 2004
34. Law on Anti-dumping Measures and on
Countervailing MeasuresAnti-Dumping
Subsidies andCountervailing
MeasuresTA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in September 2003and to the Parliament in January 2004.October 2004
35. Law on Geographical Indications
Including Appellation of OriginTRIPS TA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in April 2004 and to
the Parliament in June 2004December 2004
36. Law on Protection of Undisclosed
InformationTRIPS TA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in October 2003 andto the Parliament in March 2004.November 2004
37. Law on Rules of Origin Rules of Origin TA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in June 2004 and tothe Parliament in August 2004.December 2004
38. Law Establishing the Commercial
CourtGeneral TA requested by the Ministry of Commerce and the
Ministry of Justice to prepare draft; Submission to CM is
expected in December 2003 and to the Parliament in
February 2004.December 2004
39. Civil Procedure Code General Being drafted by the Ministry of Justice; Submission to
CM is expected in June 2003 and to the Parliament inDecember 2003.December 2004
40. Civil Code General Being drafted by the Ministry of Justice; Submission to
CM is expected in June 2003 and to the Parliament inDecember 2003June 2004
41. Criminal Procedures Code General Being under revi ew by the Ministry of Justice; Submission
to CM is expected in June 2003 and to the Parliament in
June 2004.December 2004
42. Criminal Code General Being under review by  the Ministry of Justice; Submission
to CM is expected in September 2003 and to the Parliamentin March 2004.November 2004
YEAR 2005
43. Law on Layout Designs of Integrated
CircuitTRIPS TA requested by the Ministry of Industry, Mines, and
Energy to prepare draft; Submis sion to CM is expected in
June 2004 and to the Parliament in August 2004.January 2005
44. Law on Plant Variety Protection TRIPS TA requested by the Ministry of Industry, Mines, and
Energy to prepare draft; Submis sion to CM is expected in
July 2004 and to the Parliament in September 2004.January 2005WT/ACC/KHM/21
Page 57Law Agreement(s) Status of Draft Expected Approval Date  (Parliament)
45. Commercial Leasing Law General Draft completed by the Ministry of Commerce; Submission
to CM is expected in June 2004 and to the Parliament inAugust 2004.January 2005
46. Merchant Shipping Law GATS Being drafted by the Ministry of Public Works and
Transports; submission to the CM is expected in November2004 and to the Parliament in December 2004.February 2005
47. Law on Protection of Undisclosed
InformationTRIPS TA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in October 2004 and
to the Parliament in November 2004.March 2005
48. Law on Anti-dumping Measures and on
Countervailing MeasuresAnti-Dumping
Subsidies andCountervailingMeasuresTA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in September 2004and to the Parliament in December 2004.March 2005
49. Commercial Agency Law General Draft completed by the Ministry of Commerce; Submission
to CM is expected in September 2004 and to the Parliamentin November 2004.February 2005
50. Criminal Code General Being under review by  the Ministry of Justice; Submission
to CM is expected in September 2004 and to the Parliament
in November 2004.March 2005
51. Law on Criminal Procedures General Being under review by the Ministry of Justice; Submission
to CM is expected in November 2004 and to the Parliamentin December 2004.April 2005
52. Commercial Agency Law General Draft completed by the Ministry of Commerce; Submission
to CM is expected in November 2004 and to the Parliamentin December 2004.June 2005
53. Civil Procedure Code General Being drafted by the Ministry of Justice; Submission to
CM is expected in December 2003 and to the Parliament inMarch 2004.June 2005
54. Civil Code General Being drafted by the Ministry of Justice; Submission to
CM is expected in October 2003 and to the Parliament in
December 2004June 2005
55. Law on Safeguard Measures Safeguards TA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in November 2004and to the Parliament in December 2004. July 2005
YEAR 2006
56. Competition Law General TA requested by the Ministry of Commerce to prepare
draft; Submission to CM is expected in October 2005 andto the Parliament in December 2005.January 2006
57. Securities and Exchange Laws General Being drafted by the Ministry of Economy and Finance;
submission to the CM is expected in June 2005 and to the
Parliament in October 2005.January 2006WT/ACC/KHM/21
Page 58Table 1(a):  Status of Cambodia's Pr ivatization Programme (at end-April 2000)
Enterprises to be Retained En terprises to be Privatized Enterprises already Privatized
Controlling Ministry Fully
activeReduced
activityIdle TotalFully
activeReduced
activityIdle TotalLeased
enterprisesJoint
ventureSold to
private
sectorEnterprises
already
transformed
into Public
EnterprisesTotal
P l a n n i n g 0000000000101
A g r i c u l t u r e 00005207 2 2207 3 1
C o m m e r c e 00000202 1 9053 2 7
C u l t u r e 0000000040004
H e a l t h 0000000011114
I n d u s t r y 00000303 5 0040 5 4
P u b l i c  w o r k s  a n d  T r a n s p o r t 41050404 1 5020 1 7
P o s t  a n d  T e l e c o m m u n i c a t i o n s 0000000021003
C o u n c i l  o f  m i n i s t e r s 1001000031206
F i n a n c e 0000000000303
F o r e i g n  A f f a i r s 0000000080008
D e f e n c e 0000000060006
I n f o r m a t i o n 0000000040004
E d u c a t i o n 0000000070007
T o u r i s m 0000000050005
U r b a n i z a t i o n 2002000050005
I n t e r i o r 0000000010203
T o t a l 71085 1 10 1 6 1 5 25 2 0 1 1 1 8 8WT/ACC/KHM/21
Page 59
Table 1(b):  List of State-owned enterprises (as per March 2003)
No. Ministry Name of enterprise
I. STATE-OWNED ENTERPRISES
1. Ministry of Agriculture, Forestry, and
FisheriesChup Rubber Plantation Company;
Krek Rubber Plantation Company;Memut Rubber Plantation Company;
Chamkar Andaung Rubber Plantation Company;
Snuol rubber Plantation Company;Pem Chang Rubber plantation Company;Boeung Ket Rubber Plantation Company;Agricultural Inputs Company
2. Ministry of Public Works and Transport Sihanouk Ville Port;
Phnom Penh Port;
Kampuchea Shipping Agency and Broker (KAMSAB);
Laboratory of Construction;Royal Railway of Cambodia;Neak Loeung Ferry;Prek Kdam Ferry
3. Phnom Penh Municipality Phnom Penh Water Supply
4. Ministry of Industry, Mines and Energy Electricity of Cambodia (EDC)
5. Ministry of Economy and Finance Rural Development Bank
6. Ministry of Commerce Green Trade Company
II.  JOINT-VENTURE ENTERPRISES (51 per cent State participation)
Camintel Company;Cambodia Pharmaceutical EnterprisesWT/ACC/KHM/21
Page 60
Table 1(c):  Enterprises to remain in
State ownership upon completion of the privatization programme
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, Prek Tamak 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 is
completed.WT/ACC/KHM/21
Page 61
Table 2:  Excise taxes levied on motor vehicles and motorcycles in Cambodia
Head-
ingHS - Code Description of GoodsExcise
Rate
87.02  Motor vehicles for the transport of ten or more persons, including the
driver. 
  - With compression-ignition internal combustion piston engine (diesel or
semi-diesel): 
 8702.10.10  - - Gross vehicle weight exceeding 6t but not exceeding 18t, not fully
assembled10
 8702.10.20  - - Gross vehicle weight exceeding 6t but not exceeding 18t, fully
assembled10
 8702.10.90  - - Other 10
 8702.90.00  - Other 10
87.03 Motor cars and other motor vehicles principally designed for the transport
of persons (other than those of heading No. 87.02), including stationwagons and racing cars. 
  - Other vehicles, with spark-ignition internal combustion reciprocating
piston engine: 
  - - Of a cylinder capacity not exceeding 1,000 cc:  
 8703.21.20  - - - Other vehicles for the transport of not more than 8 persons, including
the driver15
 8703.21.30   - - - Other vehicles for the transport of 9 persons, including the driver 15
  - - Of a cylinder capacity exceeding 1,000 cc but not exceeding 1,500 cc:  
 8703.22.20  - - - Other vehicles for the transport of not more than 8 persons, including
the driver45
 8703.22.30  - - - Other vehicles for the transport of 9 persons, including the driver 45
  - - Of a cylinder capacity exceeding 1,500 cc but not exceeding 3,000 cc:  
  - - - Other, of a cylinder capacity exceeding1500 cc but not exceeding
2,000 cc: 
 8703.23.21  - - - - For the transport of not more than 8 persons, including the driver 45
 8703.23.22  - - - - For the transport of 9 persons, including the driver 45
  - - - Other, of a cylinder capacity exceeding 2,000 cc but not exceeding
3,000 cc: 
 8703.23.31   - - - - For the transport of not more than 8 persons, including the driver 80
 8703.23.32   - - - - For the transport of 9 persons, including the driver 80
  - - Of a cylinder capacity exceeding 3,000 cc:  
  - - - Other, of a cylinder capacity not exceeding 4,000cc:  
 8703.24.21  - - - - For the transport of not more than 8 persons, including the driver 110
 8703.24.22  - - - - For the transport of 9 persons, including the driver 110
  - - - Other, of a cylinder capacity exceeding 4,000 cc:  
 8703.24.31   - - - - For the transport of not more than 8 persons, including the driver 110
 8703.24.32  - - - - For the transport of 9 persons, including the driver 110
  - Other vehicles, with compression-ignition internal combustion piston
engine (diesel or semi-diesel): 
   - - Of a cylinder capacity not exceeding 1,500 cc:  
   - - - Other , of cylinder capacity not exceeding 1,000 cc:  
 8703.31.21  - - - - For the transport of not more than 8 persons, including the driver 15
 8703.31.22  - - - - For the transport of 9 persons, including the driver 15
  - - - Other, of a cylinder capacity exceeding 1,000 cc but not exceeding
1,500 cc: 
 8703.31.31  - - - - For the transport of not more than 8 persons, including the driver 45
 8703.31.32  - - - - For the transport of 9 persons, including the driver 45
  - - Of a cylinder capacity exceeding 1,500 cc but not exceeding 2,500 cc:  
  - - - Other, of a cylinder capacity exceeding 1,500 cc but not exceeding
2,000 cc: WT/ACC/KHM/21
Page 62
Head-
ingHS - Code Description of GoodsExcise
Rate
 8703.32.21  - - - - For the transport of not more than 8 persons, including the driver 45
 8703.32.22  - - - - For the transport of 9 persons, including the driver 45
  - - - Other, of a cylinder capacity exceeding 2,000 cc but not exceeding
2,500 cc: 
 8703.32.31  - - - - For the transport of not more than 8 persons, including the driver 80
 8703.32.32  - - - - For the transport of 9 persons, including the driver 80
  - - Of a cylinder capacity exceeding 2,500cc:  
  - - - Other, of a cylinder capacity exceeding 2,500cc but not exceeding
3,000 cc: 
 8703.33.21  - - - - For the transport of not more than 8 persons, including the driver 80
 8703.33.22  - - - - For the transport of 9 persons, including the driver 80
  - - - Other, of a cylinder capacity exceeding 3,000 cc:  
 8703.33.31  - - - - For the transport of not more than 8 persons, including the driver 110
 8703.33.32   - - - - For the transport of 9 persons, including the driver 110
87.04  Motor vehicles for the transport of goods  
  - Other, with compression-ignition internal combustion piston engine
(diesel or semi-diesel): 
 8704.21.00  - - G.v.w. not exceeding 5 tonnes 10
 8704.22.00  - - G.v.w. exceeding 5 tonnes but not exceeding 20 tonnes 10
 8704.23.00  - - G,v,w, exceeding 20 tonnes. 10
  - Other, with spark-ignition internal combustion piston engine:  
 8704.31.00  - - G.v.w.not exceeding 5 tonnes 10
 8704.32.00  - - G.v.w. exceeding 5 tonnes 10
 8704.90.00  - Other 10
87.06  Chassis fitted with engines, for the motor vehicles of headings Nos. 87.01
to 87. 05. 
 8706.00.10  - For vehicles of subheading No. 8702.10.10 of gross vehicle weight   of
6t or more but not exceeding 18t 25
  - For vehicles of heading No 87.03:  
 8706.00.21  - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8706.00.22  - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8706.00.23  - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10,8703.33.1025
 8706.00.90  - Other 25
87.07  Bodies (including cabs), for the motor vehicles of headings Nos. 87.01 to
87.05. 
  - For vehicles of heading No 87.03:  
 8707.10.10  - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225 
 8707.10.20  - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.32 25
 8707.10.30  - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
 8707.90.00  - Other 25
87.08  Parts and accessories of the motor vehicles of headings nos. 87.01 to
87.05. 
  - Bumpers and parts thereof:  
  - - Of moulded plastic:  WT/ACC/KHM/21
Page 63
Head-
ingHS - Code Description of GoodsExcise
Rate
 8708.10.12  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.10.13  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.10.14  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.10.15  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - Other:  
 8708.10.92  - - - For vehicles of heading Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.10.93  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.10.94  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21, 25
    8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,
8703.33.21, 25
    8703.33.22, 8703.33.31, 8703.33.32 25
 8708.10.95  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - Other parts and accessori e of bodies (including cabs):  
  - - Safety seat belts:  
 8708.21.20  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.21.30  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.21.40  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.21.50  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - Other:  
  - - - Components of door trim assembly:  
 8708.29.12  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.29.13  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225
 8708.29.14  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,
8703.33.21, 8703.33.22, 8703.33.31, 8703.33.3225
 8708.29.15  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - - Other:  
 8708.29.92  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.29.93  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225 
 8708.29.94  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,
8703.33.21, 8703.33.22, 8703.33.31, 8703.33.3225 WT/ACC/KHM/21
Page 64
Head-
ingHS - Code Description of GoodsExcise
Rate
 8708.29.95  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025 
  - Brakes and servo-brakes and parts thereof:  
  - - Mounted brake linings:  
 8708.31.20  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.31.30  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,8703.31.32, 8703.32.21, 8703.32.2225
 8708.31.40  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.31.50  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - Other:  
 8708.39.20  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.39.31  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.39.40  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.39.50  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,  25
    8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10 25
  - Gear boxes:  25
  - - Not fully assembled:  25
 8708.40.12  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.40.13  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.40.14  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.40.15  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - Fully assembled:  
 8708.40.22  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.40.23  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.40.24  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.40.25  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - Drive-axles with differential, whether or not provided with other
transmission components: 
  - - Not fully assembled:  
 8708.50.12  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025WT/ACC/KHM/21
Page 65
Head-
ingHS - Code Description of GoodsExcise
Rate
 8708.50.13  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.50.14  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.50.15  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - Fully assembled:  
 8708.50.22  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.50.23  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.50.24  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.50.25  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - Non-driving axles and parts thereof:  
  - - Not fully assembled:  
 8708.60.12  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.60.13  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.60.14  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.60.15  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - Fully assembled:  
 8708.60.22  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.60.23  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.60.24  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.60.25  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - Road wheels and parts and accessories thereof:  
  - - Wheel centre discs:  
 8708.70.12  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.70.13  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.70.14  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.70.15  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025 
  - - Other:  WT/ACC/KHM/21
Page 66
Head-
ingHS - Code Description of GoodsExcise
Rate
 8708.70.92  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.00 25
 8708.70.93  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225
 8708.70.94  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225 
 8708.70.95  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10 25
  - Suspension shock-absorbers:  
  - - Parts:  
 8708.80.12  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.80.13  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225 
 8708.80.14  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225 
 8708.80.15  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025 
  - - Other:  
 8708.80.92  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025 
 8708.80.93  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.22 25
 8708.80.94  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225
 8708.80.95  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025 
  - Other parts and accessories:  
  - - Radiators:  
 8708.91.20  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025 
 8708.91.30  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225 
 8708.91.40  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.32 25
 8708.91.50  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - Silencers and exhaust pipes:  
  - - - Straight-through silencers:  
 8708.92.12  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025 
 8708.92.13  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225 
 8708.92.14  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,8703.33.21, 8703.33.22, 8703.33.31, 8703.33.3225 WT/ACC/KHM/21
Page 67
Head-
ingHS - Code Description of GoodsExcise
Rate
 8708.92.15  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025 
  - - - Other:  
 8708.92.92  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025 
 8708.92.93  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225 
 8708.92.94  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,
8703.33.21, 8703.33.22, 8703.33.31, 8703.33.3225 
 8708.92.95  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10 25
  - - Clutches and parts thereof:  
 8708.93.20  - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.93.30  - - - For vehicles of subheadings No 8703.21.20, 8703.21.30, 8703.22.20,
8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22, 8703.31.31,
8703.31.32, 8703.32.21, 8703.32.2225 
 8708.93.40  - - - For vehicles of subheadings No 8703.23.31, 8703.23.32, 8703.24.21,
8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32, 8703.33.21,
8703.33.22, 8703.33.31, 8703.33.3225 
 8708.93.50  - - - For vehicles of subheadings No 8703.21.10, 8703.22.10, 8703.23.10,
8703.24.10, 8703.31.10, 8703.32.10, 8703.33.10 25
  - - Steering wheels, steering columns and steering boxes:  
  - - - Steering wheels:  
 8708.94.12  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.00 25
 8708.94.13  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225
 8708.94.14  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,
8703.33.21, 8703.33.22, 8703.33.31, 8703.33.3225 
 8708.94.15  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025 
  - - - Steering columns and steering boxes:  
 8708.94.22  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.94.23  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225
 8708.94.24  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,
8703.33.21, 8703.33.22, 8703.33.31, 8703.33.3225
 8708.94.25  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - Other:
  - - - Brake and clutch pedals; chassis for Asian Utility Vehicles; fuel
tanks, assembled:
 8708.99.12  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.99.13  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225WT/ACC/KHM/21
Page 68
Head-
ingHS - Code Description of GoodsExcise
Rate
 8708.99.14  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,
8703.33.21, 8703.33.22, 8703.33.31, 8703.33.3225
 8708.99.15  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - - Unassembled fuel tanks:
 8708.99.22  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.99.23  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225
 8708.99.24  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 8703.24.22, 8703.24.31, 8703.24.32, 8703.32.31, 8703.32.32,
8703.33.21, 8703.33.22, 8703.33.31, 8703.33.3225
 8708.99.25  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
  - - - Other:
 8708.99.92  - - - - For vehicles of headings Nos. 8702 and 8704 except subheading
No.8704.10.0025
 8708.99.93  - - - - For vehicles of subheadings No 8703.21.20, 8703.21.30,
8703.22.20, 8703.22.30, 8703.23.21, 8703.23.22, 8703.31.21, 8703.31.22,
8703.31.31, 8703.31.32, 8703.32.21, 8703.32.2225
 8708.99.94  - - - - For vehicles of subheadings No 8703.23.31, 8703.23.32,
8703.24.21, 7803.24.22, 7803.24.31, 7807.24.32, 7807.32.31, 7807.32.32,
7807.33.31,
 8703.33.22, 8703.33.31, 8703.33.3225
 8708.99.95  - - - - For vehicles of subheadings No 8703.21.10, 8703.22.10,
8703.23.10, 8703.24.10, 8703.31.10, 8703.32.10, 8703.33.1025
   
87.11 Motorcycles (including mopeds) and cycles fitted with auxiliary motors;
with or without side-cars; side cars. 
 
   87112010 - With reciprocating internal combustion piston engine of a cylinder
capacity exceeding 50 cc but not exceeding 150 cc:5 
 8711.20.20  - - With reciprocating internal combustion piston engine of a cylinder
capacity exceeding 125 cc but not exceeding 250 cc45
 8711.30.00  - With reciprocating internal combustion   piston engine of a cylinder
capacity exceeding 250 cc but not exceeding 500 cc45
 8711.40.00  - With reciprocating internal combustion piston engine of a cylinder
capacity exceeding 500 cc but not exceeding 800 cc45
 8711.50.00  - With reciprocating internal combustion piston engine of a cylinder
capacity exceeding 800 cc45
 87119010  - With cylinder capacity less than 125 cc  5
 8711.90.20  - - With cylinder capacity 125 cc or more 45
87.14 Parts and accessories of vehicles of headings nos. 87.11 to 87.13.  
  - Of motorcycles (including mopeds):  
 87141110  - - For cycle of subheading Nos 87111000, 87112010 and 87119010 5 
 8714.11.20  - - - For cycles of subheadings Nos. 8711.20.20, 8711.30.00, 8711.40.00,
8711.50.00, 8711.90.2015
 87141910  - - For cycles of subheadings Nos 87111000,87112010 and 87119010 5
 8714.19.20  - - - For cycles of subheadings Nos. 8711.20.20, 8711.30.00, 8711.40.00,
8711.50.00, 8711.90.2015WT/ACC/KHM/21
Page 69
Table 3:  Imported products exempt from VAT in Cambodia
HS classification Product description
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;  0701.10.00Animal species
1005.10.00;  1006.11.00;  1008.30.00;
12.04; 12.05;  12.06;
1207.20.00;  1207.30.00;  1207.40.00;1207.50.00;  1207.60.00; 1207.91.00;12.09;  50.01Seeds
23.08;  23.09 except 2309.10.10 and 2309.10.90 Animal feedstuff and supplementary feedWT/ACC/KHM/21
Page 70
Table 4:  Products Banned from Importation into Cambodia
A. List of pesticides banned from use in the Kingdom of Cambodia
No. HS Code Common Name Use
1.  1,2-dibromo-3-chloropropane [DBCP] NEM
2.  2.4.5 T  HEB
3.  aldicarb(e)  INS-S
4.  aldrin(e) [HHDN, for pure material] BODUP
5. 28048000 arsenic compound  RDT
6.  BHC/ HCH [666,hexachlor(an)] INS
7. 28371900 calcium cyanide  FM
8. 29021900 camphechlor [Polychlorcamphene,toxaphene] BODUP
9.  captafol [difolatan] FN
10.  chlor(o)dimeform(e) [Chlorphenamidine] BODUP
11.  chlordane  INS
12.  chlorfenvinphos [CVP] INS
13.  chlormephos  INS
14.  chlorphenamidine  BODUP
15.  chlorthiophos  BODUP
16.  coumaphos  AC,MT
17.  crimidine  RDT
18.  cyanthoate  INS
19.  cycloheximide  FN
20.  cyhexatin [tricyclohexyltin hydroxide] AC
21. 29036200 DDT [zeidane, dicophane] INS
22.  demephion-O and S  INS
23.  demephion-S [merkaptofos teolery] BODUP
24.  demeton-O   and-S  INS
25.  demeton-S  BODUP
26.  dieldrin(e) [HEOD] INS
27.  dimefox  INS
28.  dinoseb(e) [DNBP] HEB
29.  disulfoton [ethylthiodemeton, M-74] INS
30. 29209000 endosulfan  INS
31.  endrin(e) [nendrin] BODUP
32.  EPN  INS
33.  ESP [oxydeprofos] BODUP
34.  ethoprop [ethoprophos] INS-S
35.  ethylthiometon  
36.  fenamiphos (phe-)  
37.  fenophosphon  
38.  fensulfothion  
39.  fluoroacetamide  
40.  fonofos  
41.  fosthietan  
42.  heptachlor(e)  
43.  isodrin [isomer of aldrine]
44.  leptophos [MBCP]
45.  MBCP Herbicide  
46.  mephosf(ph)olan  
47. 37079000 mercuric compound  
48. 29201000 methyl parathion [metafos]
49.  monocrotophos  WT/ACC/KHM/21
Page 71
A. List of pesticides banned from use in the Kingdom of Cambodia
No. HS Code Common Name Use
50.  paraquat  
51.  parathion [thiofos]
52.  parathion-ethyl  
53.  phenamiphos  
54. 29310090 phenylmercury acetate  
55.  phorate [timet ]
56.  phos(ph)folan  
57. 29241000 phosphamidon  
58.  prothoate  
59.  red squill [scilliroside]
60.  schradan(e)  
61. 28261100 sodium fluoroacetate  
62.  sulfotep(p)  
63.  TEPP [ethyl pyrophosphate]
64.  terbufos  
65.  terpene polychlorinates [polychloroterpenes]
66.  thionazin(e)  
67.  trichloronat(e)  
Legend:
AC : Acaricide
AP: Aphicide
BTS: Bacteriostat (soil)
BODUP: Active Ingredient believed to be
obsolete or discontinued for use
as pesticide
DFL: Defoliant
FN: Fungicide, other than for seed
treatment
FM: Fumigant
FST: Fungicide for Seed Treatment
HEB: HerbicideINS: InsecticideIa.: Extremely hazardous (<20mgkg)
Ib.: Highly hazardous(20-200mgkg)
II.: Moderately hazardous(200-
2000mgkg)
III.: Slightly hazardous(>2000mgkg)
IGR: Insect Growth RegulatorML: Mollusscicide
MT: Miticide
NEM: NematicideO: Pesticide unlikely to present
acute hazard in normal use
PGR: Plant Growth RegulatorRDT: RodenticideGF: Gaseous or volatile fumigants
not classified under the WHO
recommended classification of
pesticides by hazard
LV: Larvicide
-S: Apply to soil: not use with HEB
or PGR
GF: Gaseous or volatile fumigants
not classified under the WHOrecommended classification of
pesticides by hazard; [....]-others
equivalent  common names.WT/ACC/KHM/21
Page 72
B.  List of Narcotics, Psychotropic Substances  and Their Precursors Banned from Import into
Cambodia
No. HS –Code Description
1. 1211.90.10  - - Of a kind used in pharmacy
2. 1211.90.20  - - Cannabis
3. 1211.90.30  - - Coca
4. 1301.90.30  - - Cannabis resin
5. 1302.11.00  - - Opium.
6. 1302.19.10  - - - Extracts and dyes of cannabis
7. 1302.39.10  - - - Modified
8. 2921.11.00  - - Methylamine, di- or trimethylamine and their salts
9. 2921.12.00  - - Diethylamine and its salts
10. 2921.19.00  - - Other
11. 2921.21.00  - - Ethylenediamine and its salts
12. 2921.22.00  - - Hexamethylenediamine and its salts
13. 2921.29.00  - - Other
14. 2921.30.00  - Cyclanic, cyclenic or cycloterpenic mono- or polyamines, and their derivatives; salts
thereof
15. 2921.41.00  - - Aniline and its salts
16. 2921.42.00  - - Aniline derivatives and their salts
17. 2921.43.00  - -Toluidines and their derivatives; salts thereof
18. 2921.44.00  - - Diphenylamine and its derivatives; salts thereof
19.       (beta-naphthylamine) and their derivatives; salts thereof
20. 2921.49.00  - - Other
21. 2921.51.00  - - o-, m-, p-Phenylenediamine, diaminotoluenes, and their  derivatives salts thereof
22. 2921.59.00  - - Other
23. 2922.11.00  - - Monoethanolamine and its salts
24. 2922.12.00  - - Diethanolamine and its salts
25. 2922.13.00  - -Triethanolamine and its salts
26. 2922.19.00  - - Other
27. 2922.21.00  - - Aminohydroxynaphthalene sulphonic acids and their salts
28. 2922.22.00  - - Anisidines, dianisidines, phenetidines, and their salts
29. 2922.29.00  - - Other
30. 2922.30.00  - Amino-aldehydes, amino-ketones and amino-quinones , other than   those containing
more than one kind of oxygen function; salts thereof - Amino-acids and their esters,other than those containing  more than one kind of oxygen function; salts thereof :
31. 2922.41.00  - - Lysine and its esters; salts thereof
32. 2922.42.10  - - - Glutamic acid
33. 2922.42.20  - - - Monosodium glutamate
34. 2922.42.90  - - - Other
35. 2922.43.00  - - Anthranilic acid and its salts
36. 2922.49.00  - - Other
37. 2922.50.00  - Amino-alcohol-phenols,amino-acid-phenols and other  amino-compounds  with
oxygen function
38. 2924.10.00  - Acyclic amides (including acyclic carbamates)  and their derivatives;   salts thereofWT/ACC/KHM/21
Page 73
B.  List of Narcotics, Psychotropic Substances  and Their Precursors Banned from Import into
Cambodia
No. HS –Code Description
39. 2924.21.10  - - - Parsethoxyphenyl urea (dulcin)
40. 2924.21.90  - - - Other
41. 2924.22.00  - - 2-Acetamidobenzoic acid
42. 2924.29.00  - - Other
43. 2925.11.00  - - Saccharin and its salts
44. 2925.19.10  - - - Glutethimides
45. 2925.19.90  - - - Other
46. 2925.20.10  - - Metformin, phenformin and cemetidines; its salts and derivatives
47. 2925.20.20  - - Ethylene imine, propylene imine
48. 2925.20.90  - - Other
49. 2926.10.00  - Acrylonitrile
50. 2926.20.00  - 1- Cyanoguanidine (dicyandiamide)
51. 2926.90.00  - Other
52. 2927.00.00  Diazo-, azo- or azoxy-compounds.
53. 2932.11.00  - -Tetrahydrofuran
54. 2932.12.00  - - 2-Furaldehyde (furfuraldehyde)
55. 2932.13.00  - - Furfuryl alcohol and tetrahydrofurfuryl alcohol
56. 2932.19.00  - - Other
57. 2932.21.00  - - Coumarin, methylcoumarins and ethylcoumarins
58. 2932.29.00  - - Other lactones
59. 2932.91.00  - - Isosafrols
60. 2932.92.00  - - 1-(1,3-Benzodioxol-5-yl )propan-2-one
61. 2932.93.00  - - Piperonal
62. 2932.94.00  - - Safrole
63. 2932.99.00  - - Other
64. 2933.11.00  - - Phenazone (antipyrin) and its derivatives
65. 2933.19.00  - - Other
66. 2933.21.00  - - Hydantoin,and its derivatives
67. 2933.29.00  - - Other
68. 2933.31.00  - - Pyridine and its salts
69. 2933.32.00  - - Piperidine and its salts
70. 2933.39.10  - - - Chlorpheniramine and isoniazid
71. 2933.39.90  - - - Other
72. 2933.40.00  - Compounds containing a quinoline or isoquinoline ring - system   (whether or not
hydrogenated), not further fused
73. 2933.51.00  - - Malonylurea (barbituric acid) and its derivatives;  salts thereof
74. 2933.59.00  - - Other
75. 2933.61.00  - - Melamine
76. 2933.69.00  - - Other
77. 2933.71.00  - - 6-Hexanelactam (epsilon-caprolactam)
78. 2933.79.00  - - Other lactams
79. 2933.90.10  - - Mebendazole and Parbendazole
80. 2933.90.90  - - Other
81. 2934.10.00  - Compounds containing an unfused thiazole ring  (whether or not hydrogenated)   in
the structureWT/ACC/KHM/21
Page 74
B.  List of Narcotics, Psychotropic Substances  and Their Precursors Banned from Import into
Cambodia
No. HS –Code Description
82. 2934.20.00  - Compounds containing a benzothiazole ring-system   (whether or not hydrogenated),
not further fused
83. 2934.30.00  - Compounds containing a phenothiazine ring-system  (whether or not hydrogenated),
not further fused
84. 2934.90.00   - Other
85. 2939.10.00  - Alkaloids of opium and their derivatives; salts thereof
86. 2939.21.00  - - Quinine and its salts
87. 2939.29.00  - - Other
88. 2939.30.00  - Caffeine and its salts
89. 2939.41.00  - - Ephedrines and its salts
90. 2939.42.00  - - Pseudophedrine (INN) and its salts
91. 2939.49.00  - - Other
92. 2939.50.00  - Theophylline and aminophylline(theophylline - ethylenediamine) and  their
derivatives; salts thereof
93. 2939.61.00  - - Ergometrine (INN) and its salts
94. 2939.62.00  - - Ergotamine (INN) and its salts
95. 2939.63.00  - - Lysergic acid and its salts
96. 2939.69.00  - - Other
97. 2939 70.10  - - Nicotine sulphate
98. 2939 70.90  - - Other
99. 2939.90.00  -  Other
C- Right Hand Drive VehiclesWT/ACC/KHM/21
Page 75
Table 5:  Goods subject to import licensing
HS Codes DescriptionGovernment Body in charge of import
licensing
300110, 300120, 300190,300210, 300210, 300230,
300290, 300310, 300320,
300330, 300340, 300390,300410, 300420, 300430,300440, 300450, 300490,300510, 300590, 300610,
300620, 300630, 300640,
300650, 300660Pharmaceuticals and
medical materialMinistry of Health, Department of Drugs and
Food
310100, 310210, 310220,310230, 310240, 310240,310250, 310260, 310270,310280, 310290, 310310,310320, 310390, 310410,
310420, 310430, 310490,
310510, 310520, 310530,310540, 310550, 310560,310590, 380810, 380820,380830, 380840, 380890Agricultural inputs Ministry of Agriculture, Forestry and Fishery
(MAFF), Department of AgriculturalLegislation
36; 93 Weapons, explosives and
ammunitionMinistry of National Defense
71.06; 71.08; 71.18 Gold, silver, precious
stones and articles thereofNational Bank of Cambodia
88; 89 Vehicles, aircraft and
parts, ships and boats, and
other machinery formilitary purposesMinistry of National DefenseWT/ACC/KHM/21
Page 76
Table 6:  Imports subject to minimum customs value
HS Code Product Description
1 1511.90.00 Cooking Oil
2 0713. Green bean
3 2401.20.90 Leaf tobacco strips
4 2401.30.00 C-Tobacco slice
5 2403.10.90 Cut tobacco
6 2710.00.21   to   2710.00.27 Gasoline ( E.A )
7 2710.00.31 Gasoline ( JET A1 )
8 2710.00.41 Aviation turbine fuel having of flashpoint of 23oC or over
9 2710.00.42 Lamps kerosen
10 2710.00.71   to   2710.00.73 Gas Oils
11 2710.00.79 Other of gas oils
12 2710.00.83 Lubriating oil
13 2711.11.00 Natural Gas
14 2806.10.00 Hydrochloric acid
15 2807.10.00 Sulfuric acid
16 2922.42.20 Monosodium Glutamate
17 4802.52.00 Paper in roll ( 50 GSM to 70 GSM )
18 4802.53.00 Paper in roll ( more than 150 GSM )
19 6309.00.00 Used Clothes
20 6908.90.20 Tile ( for China origine only )
21 7208.10.00   to   7208.90.00 Flat-rolled product of iron or non-alloy steel
22 7209.15.00   to   7209.90.00 Flat-rolled product of iron or non-alloy steel
23 7211.13.00   to   7211.90.90 Flat-rolled product of iron or non-alloy steel
24 7213.10.10   to   7213.99.30 Bars and rods, hot -rolled in irregularly wound coils, of iron or
non-allly steel
25 7214.10.10   to  7214.99.30 Other bars and rods of iron or non-allly steel
26 7215.10.10   to   7215.90.20 Other bars and rods of iron or non-allly steel
27 7216.10.10   to   7216.99.20 Angles, sharpes and sections of iron or non-alloy steel
28 7303.00.10   to   7303.00.90 Tubes, pipes and hollow profiles, of cast iron
29 7304.10.00   to   7404.90.00 Tubes, pipes and hollow profiles, seamless, of iron or steel
30 7305.11.00   to   7305.90.00 Other tubes and pipes
31 7306.10.00   to   7306.90.90 Other tubes, pipes and hollow profiles, of iron or steel
32 8407.31.90 Used motorcycle engine
33 8415.10.10 Used air conditionner
34 8418.10.10 Used refrigerator
35 8450.11.00 Used washing machine
36 8473.30.90 Computer casing with power supply
37 8501.61.00   to   8501.64.00 Generator
38 8502.11.00   to   8502.20.20 Generator
39 8518.29.00 Used speaker
40 8518.50.00 Used amplifier
41 8520.33.00 Used radio cassette
42 8521.10.00 Used VTR, VCR, VCP,
43 8523.29.00 Cement
44 8528.12.00 Used CTV
45 8702.10.10   to   8702.90.00 Motor vehicles for the transport of ten or more persons
46 8703.10.10   to   8703.10.20 Motor cars
47 8703.21.20   to   8703.21.30 Motor cars
48 8703.22.20   to   8703.22.30 Motor cars
49 8703.23.21   to   8703.23.32 Motor cars
50 8703.24.21   to   8703.24.32 Motor cars
51 8703.31.21   to   8703.31.32 Motor carsWT/ACC/KHM/21
Page 77
HS Code Product Description
52 8703.32.21   to   8703.32.32 Motor cars
53 8703.33.21   to   8703.90.12 Motor cars
54 8704.10.00   to   8704.90.00 Motor vehicles for the transport of goods
55 8708.29.13 Used door for motor vehicles origine from Japan, EU and the
Norht American
56 8708.29.92 Used dashboard for motor vehicles origine from Japan, EU and the
Norht American
57 8708.29.93 Used bumper for motor vehicles origine from Japan, EU and the
Norht American
58 8711.10.00 Used motorcycles
59 8711.20.10   to   8711.30.00 Used motorcycles
60 8711.90.10   to   8711.90.20 Used motorcycles
61 8712.00.00 Used Bicycles
62 8714.19.10   to   8714.19.20 Used parts and accessories of motorcycles ( Saddle )
63 8714.19.10 Used parts and accessories of motorcycles
64 9401.20.00 Used seats for motor vehicles origine from Japan, EU and the
North American
64 9503.90.90 Used Toys
HS code based on Customs Tariff of Cambodia 2001WT/ACC/KHM/21
Page 78
Table 8:  Items subject to export taxes
HS Heading Description of GoodsExport Tariff
(% ad valorem )
01.02
01.03Pure bred breeding bovine animals and swine 10
03.01, 03.02
03.03, 03.04
03.05Live fish, prepared fish and fish products 10
03.06
03.07Live crustaceans and molluscs and products thereof 10
12.11,13.01
13.02Cannabis, Cannabis resin, extracts and dyes, coca, opium* 50
29.05.50 Halogenated, sulphonated, nitr ated or nitrated derivatives of a
cyclic alcohol*50
29.26 Nitrile-function compounds* 50
40.01
40.04Natural rubber in primary forms or in plates, sheets or strips
and rubber waste10
44.02, 44.03
44.04, 44.0544.06, 44.07Unprocessed and semi-processed wood;  wood charcoal 10
44.08.10.00
44.09Sawn and shaped wood.  Veneer sheets and sheets for
plywood; strips for flooring5
* Categories included for the sake of formal completeness.  The products in these groups require a licence in order to
be exported.  The Royal Government has in fact never issued any such licenses.WT/ACC/KHM/21
Page 79
Table 9:  Export restrictions maintained by Cambodia
HS CodeProduct
descriptionMeasure Responsible agencyGATT/WTO
justification
10.06 Rice Quota/NAL Ministry of
CommerceGATT Article XI:2(a)
Eliminated on
26 July 2001
1211.90.20;
1211.90.30;1301.90.30;1302.11.00;1302.19.10;29.05;  29.21-
29.26;  29.32-
29.34;  29.39;2909.11;  2914.11;2915.24;  2915.90;2939.61;  2902.90;
2914.31;  2912.21;
30.02-30.06Pharmaceuticals
and medicalmaterial, narcoticdrugs and poisonsPermit;
Prohibition fornarcotic drugs andpoisonsMinistry of Health GATT Article XX(b)
44.01-44.04 Round and sawn
logsProhibition Council of Ministers GATT Article XX(g)
44.05-44.21 Wood products Quota/NAL Council of
Ministers, MAFF,Ministry ofCommerceGATT Article XX(g)
93.01-93.06 Weapons,
explosives and
ammunitionNAL Ministry of National
DefenceGATT Article
XXI(b)(ii)
87.10 Vehicles and
machinery for
military purposesNAL Ministry of National
DefenceGATT Article
XXI(b)(ii)
97.05;  97.06 Antiques more
than 100 years oldProhibition Ministry of Culture
and Fine ArtsGATT Article XX(f)
NAL: Non-automatic licensingWT/ACC/KHM/21
Page 80
 DRAFT DECISION
ACCESSION OF THE KINGDOM OF CAMBODIA
Decision of […]
The Ministerial Conference,
Having regard to  paragraph 2 of Article XII and paragraph 1 of Article IX of the Marrakesh
Agreement Establishing the World Trade Organization (the "WTO Agreement"), and the Decision-Making Procedures under Articles IX and XII of the WTO Agreement agreed by the General Council
(WT/L/93),
Taking note of the application of the Kingdom of Cambodia for accession to WTO
Agreement dated 19 October 1994,
Noting  the results of the negotiations directed toward the establishment of the terms of
accession of the Kingdom of Cambodia to the WTO Agreement and having prepared a Protocol on
the Accession of the Kingdom of Cambodia,
Decides  as follows:
1. The Kingdom of Cambodia may accede to the WTO Agreement on the terms and conditions
set out in the Protocol annexed to this Decision.
_______________WT/ACC/KHM/21
Page 81
DRAFT PROTOCOL
ON THE ACCESSION OF THE KINGDOM OF CAMBODIA
Preamble
The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to Article XII
of the Marrakesh Agreement Establishing the World Trade Organization (hereinafter referred to as the
"WTO Agreement"), and the Kingdom of Cambodia,
Taking note of the Report of the Working Party on the Accession of the Kingdom of Cambodia
to the WTO Agreement reproduced in document WT/ACC/KHM/21, dated 15 August 2003 (hereinafter
referred to as the "Working Party Report"),
Having regard to the results of the negotia tions on the accession of th e Kingdom of Cambodia
to the WTO Agreement,
Agree as follows:
PART I -  GENERAL
1. Upon entry into force of this Protocol pursuant to paragraph 8, the Kingdom of Cam bodia
accedes to the WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a
Member of the WTO.
2. The WTO Agreement to which the Kingdom  of Cambodia accedes shall be the WTO
Agreement, including the Explanatory Notes to that  Agreement, as rectified, amended or otherwise
modified by such legal instruments as may have entere d into force before the date of entry into force of
this Protocol.  This Protocol, which shall include  the commitments referred to in paragraph 224 of
the Working Party Report, shall be an integral part of the WTO Agreement.
3. Except as otherwise provided for in para graph 224 of the Working Party Report, those
obligations in the Multilateral Trade Agreements  annexed to the WTO Agreement that are to be
implemented over a period of time starting with the entry into force of that Agreement shall be
implemented by the Kingdom of Cambodia as if it had accepted that Agreement on the date of its entry
into force.
4. The Kingdom of Cambodia may maintain a measure inconsistent with paragraph 1 of Article II
of the GATS provided that such a measure was recorded  in the list of Article II Exemptions annexed to
this Protocol and meets the conditions of th e Annex to the GATS on Article II Exemptions.
PART II - SCHEDULES
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of
Concessions and Commitments annexed to th e General Agreement on Tariffs and Trade 1994
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Commitments annexed to the
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to the Kingdom of
Cambodia.  The staging of the concessions and commitments listed in the Schedules shall be
implemented as specified in the relevant parts of the respective Schedules.
6. For the purpose of the reference in paragraph 6(a) of Article II of the GATT 1994 to the date of
that Agreement, the applicable date in respect of the Schedules of Concessions and Commitments
annexed to this Protocol shall be the date of entry into force of this Protocol.WT/ACC/KHM/21
Page 82
PART III - FINAL PROVISIONS
7. This Protocol shall be open for acceptance, by signature or otherwise, by the Kingdom of
Cambodia until 31 March 2004.
8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall
have been accepted by th e Kingdom of Cambodia.
9. This Protocol shall be deposited with the Dire ctor-General of the WTO.  The Director-General
of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by
the Kingdom of Cambodia thereto pursuant to para graph 9 to each Member of the WTO and to the
Kingdom of Cambodia.
This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter
of the United Nations.
Done at [Cancún] this [date of  month in full] day of [September, two thousand and three] in a
single copy in the English, French and Spanish languages, each text being authentic, except that
a Schedule annexed hereto may specify that it is authentic in only one of these languages.
_______________WT/ACC/KHM/21
Page 83
ANNEX I
SCHEDULE […] – THE KINGDOM OF CAMBODIA
Authentic only in the English language.
(Circulated in document WT/ACC/KHM/21/Add.1)
_______________
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES
LIST OF ARTICLE II EXEMPTIONS
Authentic only in the English language.
(Circulated in document WT/ACC/KHM/21/Add.2)
__________