RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KHM/20
3 March 2003
(03-1214)
Working Party on the
Accession of CambodiaOriginal:  English
ACCESSION OF CAMBODIA
Additional Questions and Replies
The Government of the Kingdom of Cambodia has submitted the following replies to
additional questions raised in connection with the preparation of the Working Party's draft Report, and
requests that they be circulated to members of the Working Party.
_______________
TABLE OF CONTENTS
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................1
IV. POLICIES AFFECTING TRADE IN GOODS .....................................................................3
1. Import re gulation............................................................................................................ ..........3
(a) Registration requirements fo r  engaging in importing..........................................................3
(b) Characteristics of  national tariff .......................................................................................... ...5
(c) Tariff quotas, ta riff exemptions............................................................................................ ...6
(d) Other duties and charges, specifying any charges for services rendered ............................7
(e) Quantitative import restrictions, including prohibitions, quotas and licensing
systems ........................................................................................................................ ...............7
(h) Customs Valuation........................................................................................................... .........9
(j) Pre-shipment  inspect ion ..................................................................................................... ....13
(k) Application of internal taxes on imports ..............................................................................14
(l) Rules of  origin ............................................................................................................. ............15
2. Export Regulation............................................................................................................ .......16
(b) Customs tariff nomenclature, types of duties, duty rates, weighted averages of
weights........................................................................................................................ ..............16
(f) Export financing, subsidy and promotion policies...............................................................16
3. Internal policies affectin g foreign trade in goods.................................................................17
(b) Technical regulations and standards, including measures taken at the border
with respect to imports ........................................................................................................ ...17WT/ACC/KHM/20
Page ii
(c) Sanitary and phytosanitary measures...................................................................................18
(e) State-tradi ng practices ..................................................................................................... ......20
4. Policies affecting foreign tr ade in agricultu ral products.....................................................22
5. Policies affecting foreign trade in oth er sectors ...................................................................25
(a) Textile s regime ............................................................................................................. ...........25
V. TRADE RELATED INTELLECT UAL PROPERTY  REGIME.......................................25
1. General...................................................................................................................... ...............25
General Questions/Comments on Next Steps in the Working Party...............................................33
ANNEX 1 ........................................................................................................................ ......................35WT/ACC/KHM/20
Page 1
III. FRAMEWORK FOR MAKING  AND ENFORCING POLICIES AFFECTING FOREIGN
TRADE IN GOODS AND TRADE IN SERVICES
Question 1
Paragraph 32 of the factual summary notes that there is no Commercial Court system in
Cambodia yet, and that commercial cases are now heard in common courts.  Unfortunately, theexperience of our businesses in commercial disputes  heard in Cambodian courts leads us to believe
status quo is not providing businesses with the legal protection they need.  The establishment of a
Commercial Court system with trained judges and staff is an essential to creating a climate of
transparency and predictability, and sh ould be achieved prior to accession.
Answer:
With the intention to accelerate WTO accession, the Royal Government of Cambodia represented by the
Ministry of Justice and the Ministry of Commerce has signed a Memorandum of Understanding with the
Canadian Government on 4 February 2003 on technical assistance for the drafting the Law on
establishment of a Commercial Court and Rules of a Commercial Arbitration Center. Cambodia hopes
that further necessary technical assistance will be forthcoming from WTO members.
Question 2
Paragraph 32 of the factual summary also indicates that Cambodia has ratified the New York
Convention on the Enforcement of Foreign Arbitral Judgments and that the Ministry of
Commerce is preparing legislation to implemen t the convention.  Our understanding is that
implementing legislation has already been passed, although we have not seen it.  We would like to
request that Cambodia clarify this point, and also provide a copy of the legislation or draft
legislation (whichever the case may be).
Answer:
The implementing legislation for Cambodia’s accession to the New York Convention on the
Enforcement of Foreign Arbitral Judgements was adopted by the Cambodian National Assembly and
Senate in 2002.  The draft Commercial Arbitration Law is currently being debated at the Council of
Ministers, the draft of which was already submitted to the Working Party.
Question 3
Paragraph 38 of the factual summary discusses the publication of laws in Cambodia's Official
Journal.  Our understanding is that the Official Jou rnal is only available by subscription and that
many private sector entities are not aware of its existence.  In addition, we note that while all laws
do appear to be posted in the Journal, some new regulations have not been.  Would Cambodia
consider posting its Official Journal on the intern et to improve access to new laws and regulations.
And what practical steps can Cambodia take to better ensure that all new regulations are properlypublished in the Official Journal?
Answer:
Laws and regulations are published in the Khmer language in the Government’s Official Journal.
Cambodia is making every endeavour to ensure that all regulations are included. Cambodia is prepared
to post the contents of the Official Journal on the Government’s website.WT/ACC/KHM/20
Page 2
Question 4
Cambodia's reply to question 12 in document  WT/ACC/KHM/12 describes a major Cambodian
government anti-smuggling initiative.  However, our private sector continues to report difficulty
entering the Cambodian market because of comp etition from smuggled goods.  Weak enforcement
impairs market access on an MFN basis, and is, in  effect, a non-tariff barrier.  We wish to note
that in accession to the WTO, Cambodia will be undertaking an international obligation deter
smuggling more effectively.
Answer:
The Government of Cambodia is making major efforts in combating smuggling and expects that its
resolute actions will progressively bring positive results.
Question 5
We welcome the submission by Cambodia of its draft Law on Customs dated 15 August 2002 to
WTO members.  From Cambodia's Implementation Agenda (WT/ACC/KHM/10/Rev.1), we
understand that the Law is expected to be sent to  Parliament in December 2002 and to be adopted
by Parliament in July 2003.  Is this still envisaged?
Answer:  
The Draft Law on Customs has been approved by the Council of Ministers and submitted to the National
Assembly. The most recent version of the draft Law, as approved by the Council of Ministers, is now
available to members of the Working Party.
Question 6
Have there been any recent developments related to the draft Civil Procedure Code?
Answer:
The draft Civil Code and the draft Civil Procedure Code have been completed and will be sent to the
Council of Ministers in the near future. The drafts are being made available to the members of the
Working Party.
Question 7
Enforcement and implementation is a key WTO requirement.  In February we expressed a
concern about the long period foreseen for adoption of the Civil Procedure Code.  Is Cambodia
able to advise whether it has been possible to re view this, and accelerate the process for adoption?
Answer:
Please see answer to Question 6 and the updated action plans.
Question 8
Transparency is a key WTO requirement.  Can Cambodia advise what the practical difficulty is in
establishing the inquiry point required under Article III of GATS?WT/ACC/KHM/20
Page 3
Answer:
The Council of Ministers approved in 2002 the establis hment of a Services Enquiry Point at the Ministry
of Commerce. However, it has not been put into operation as Cambodia needs to set up necessary
computers, database, and training of staff on GATS and database operation for handling this particular
job. Therefore, technical assistance in this regard is necessarily needed from WTO Members andInternational Organizations in order to enable Cambodia to provide notification related to services
measures, law and regulation to the WTO Members in an effective manner after Cambodia has become a
WTO Member. We also recognize that Members themselves have problems in tracing services trade.
Cambodia also notes that Article III of GATS provides  developing countries appropriate flexibility with
respect to the time limit within whic h such an enquiry point is to be established. Cambodia may need to
avail itself of this flexibility.
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import regulation
(a) Registration requirements for  engaging in importing
Question 9
Cambodia's reply to question 5 of document WT/ACC/KHM/17 states that Cambodia does not
restrict the quantity or value of imports.  However, Cambodia's reply to questions 3 and 4 andAnnex I of document WT/ACC/KHM/12 list pesticides which are banned for import and states
that "import quantities of pesticides by individu al companies may be restricted subject to safety
requirements".
Can Cambodia explain this apparent contradiction?  In addition, can Cambodia explain how it
determines restrictions based on "domestic de mand", and where importers can find information
about safety requirements?
Does Cambodia plan to allow an interested party to petition for import tolerances for the listed
pesticides or to adopt any international standa rds for maximum residue limits for application to
imports of agricultural products?
Answer:  
Because Cambodia’s capacity to store and handle safely pesticides is limited, Cambodia applies import
measures based on domestic demand, which can be cal culated by crop production areas and estimated
pest infestation. The table below illustrates the process for determining the import limitations.
TABLE 1
Yearly Estimation of Chemical Pesticides needed for cultivation in Cambodia
Cultivated Areas (Ha) Infected Areas (Ha) Pesticide need (Kg/Liters)
Crops Wet
seasonDry season TotalWet
seasonDry season Total Insect Rat Weed
Rice 1,880,000 260,000 2,140,000 56,400 78,000 134,400 53,760 67,200 13,440
Vegetables 22,845 8,605 31,450 18,276 6,884 25,160 37,740 __ __
Cash crops 183,000 27,450 10,980 13,725 2,745
Total 187,010 102,480 80,925 16,185WT/ACC/KHM/20
Page 4
Note: Cash crops include:
- Peanut : 11,000 Ha
- Tobacco : 10,000 Ha
- Sesame : 20,000 Ha
- Corn : 72,000 Ha
- Others crops: 70,000 Ha
- Estimate infected areas in wet season 3%
- Estimate infected areas in dry season 30%
- Estimate infected areas on vegetables, crops in wet season and dry season 80%
- Estimate infected areas on others crops 15%
Import licenses are granted on a first come-first served basis up to the total estimated requirements
indicated in the table. When those totals have been reached, the authorities may decide that the
requirements of the particular crop year warrant additional imports, and may grant additional licences.
When it makes such a decision, all registered importers are so informed. The procedures in both casesare as described in WT/ACC/KHM/17.  In addition to these aggregate limitations, import limitations
may be temporarily applied to an individual importer when that importer’s capacity to store pesticides
has been exhausted. These limitations are necessary because pesticide companies have limited facilities
for storing and transporting pesticides. Conditions in Cambodia often result in degraded products before
the expiry date, and the cost of disposal of such products is very high and can cause harm to theenvironment.
These measures are taken under Article XX(b) of GATT 1994.  WT/ACC/KHM/17 has been revised to
reflect this information, it is now contained in WT/ACC/KHM/17/Rev.1.
Cambodia has no plans to allow companies to petition for import tolerances. As Cambodia is a member
of ASEAN, Cambodia will adopted standards fo r maximum residue limits of ASEAN and will also
adhere to FAO standards.
Question 10
It would be useful to know whether import licensing requirements are automatic or non-automatic
for each product.  It appears from document WT/ACC/KHM/17 that pharmaceuticals, medical
materials and most agricultural inputs are subject to automatic licensing, while pesticides aresubject to non-automatic licensing.  Please verify.
Answer:
This is a correct assumption. Please also refer to document WT/ACC/KHM/17/Rev.1.
Question 11
Would Cambodia please confirm that there are no  import licensing requirements for products not
identified in document WT/ACC/KHM/17?
Answer:
Yes, Cambodia confirms that there are no import licensing requirements for products not identified in
document WT/ACC/KHM/17 and Rev.1.WT/ACC/KHM/20
Page 5
Question 12
Would Cambodia please explain why the importation of pharmaceuticals is limited to pharmacists
and the importation of agricultural inputs to agricultural technicians?  Does Cambodia make a
distinction between the right of importation and the right to distribute such products within its
market?
We seek recognition of the right to import, i.e., to be the importer of record, as a separate status
from that of distribution.  In this regard, we seek Cambodia's assistance in simplifying
requirements to import e.g., pharmaceuticals and agricultural inputs, recognizing that more
demanding requirements may exist for distributors within Cambodia's market.
Answer:    
In Cambodia, the importation and distribution of pharmaceuticals have to be done by pharmaceuticals
companies that are under the technical responsibility of pharmacists. In practice, in Cambodiapharmaceuticals importers are usually at the same time distributors. As the distribution strongly requires
the presence of pharmacists, it is difficult to separate these two activities in our country.
Sub-Decree 69 on agriculture inputs limits importation of agricultural inputs to agricultural technicians
only as regards veterinary medicine. Cambodia (MAFF)  does not distinguish between the right to import
and distribute. Any company that meets MAFF requirements can register with the Ministry and thenimport and distribute.
In both cases there is need to insure human and an imal health in the process both of importing and
distributing.
(b) Characteristics of national tariff
Question 13It would be helpful to the market access negotiations if Cambodia could submit, preferably in
electronic form, its 2001 applied tariff.  Could Cambodia please agree to submit this?
Answer:
The 2001 applied tariff was submitted to the WTO Secretariat during the 3rd Working Party Meeting in
November 2002. Please see document WT/ACC/KHM/19/Add.1 of 19 November 2002.
Question 14
Paragraph 45 of the factual summary states that "only MFN rates of duty existed."  However, in
its Bilateral Textile Agreement with the United States, Cambodia has committed to apply tariff
rates on textiles and apparel products that are lower than the applied rates listed in Cambodia's
harmonized tariff schedule.  Is this Cambodia's only exception to the principle of MFN treatment?
If not, can Cambodia provide a comp lete list of all such exceptions?
Answer:
The CEPT Scheme for AFTA provides preferential rates for CEPT products originating from within
ASEAN. Cambodia, as member of ASEAN, on a reciprocal basis has a commitment to extend
preferential tariff rates as stipulated in the ASEAN Agreement. There are no other instances of departure
from MFN treatment.WT/ACC/KHM/20
Page 6
Question 15
Regarding paragraph 46, we agree that Cambodia's progress in reducing tariffs should be
acknowledged.  But the tariff rates cited in this paragraph are applied tariffs.  Cambodia's market
access offer envisions binding numerous agricultural tariffs at significantly higher levels - a great
many in excess of 60 percent.  Credit cannot be taken for autonomous liberalization not reflectedin Cambodia's tariff schedule.  In addition, it is unclear how Cambodia expects to reconcile its
stated objective of an average tariff level below 15 percent by 2002/03 and a maximum tariff of 35
percent noted in the responses to questions 18 and 19 in document WT/ACC/KHM/12, when the
bindings proposed in its market access offer are so much higher.
Answer:
Cambodia is aware that it has been the normal practice of the GATT/WTO that developing countries,
and in particular LDCs, negotiate tariff bindings on the basis of ceiling rates in the context of ArticleXXXVI.8 of GATT 1994 and Article 15 of the WTO Agreement on Agriculture.  The decision of the
General Council on “Accession of Least-Developed Countries” of 10 December 2002 states in paragraph
1.1 that “WTO members shall exercise restraint in seeking concessions and commitments on trade in
goods and services from acceding LDCs, taking into account the levels of concessions and commitments
undertaken by existing WTO LDC Members.” Cambodia is of the view that its current tariff offer goeswell beyond the levels of concessions undertaken by existing WTO LDC members.
 (c) Tariff quotas, tariff exemptions
Question 16
We would appreciate any information on recent developments regarding TRQs – does Cambodia
still consider the possibility of implementing TRQs?
Answer:
Cambodia reserves its right to implement TRQs should the negotiations with members so require. So far,
no such necessity has arisen. We also monitor developments in the Doha negotiations (DDA) with
regard to this particular issue.
Question 17
Cambodia has intimated that it might intend in the future decide to move away from its
transparent tariff-only regime and tariff reform ag enda to introducing tariff rate quotas.  Is
Cambodia prepared to reject th e future use of more complex less transparent tariff rate quota
import arrangements?
Answer:
Please see the response to Question 16.
Question 18
Concerning ad hoc tariff exemptions for compel ling reasons of national interest (paragraph 49 of
the factual summary), when such an exemption is  authorized for a specific purchase, does the
supplier have to be chosen in advance, or is th e purchaser free to source from any foreign supplier.
Are such exemptions provided on an MFN basis, or are they specific to an individually contracted
purchase?WT/ACC/KHM/20
Page 7
Answer:   
Article 4 of the draft Law on Customs contains th e following provision respecting exemptions for
matters relating to “national interests”, primarily emergencies.
5 (c). In matters concerning the national interest, including emergencies, the Royal
Government may order the total or partial suspension of duties and taxes on goodsessential to the needs of the population, or suspend the import or export of certain goods.
The Law does not permit a suspension of Cambodia’s MFN obligations in such an eventuality.
(d) Other duties and charges, specifying any charges for services rendered
Question 19
Due to the public service nature of the obligations associated with making and processing of
export/import declarations, the imposition of fees  as indicated for these activities needs to be
examined with a view to their elimination.
Answer:
We are of the view that user or processing fees applied to cover the costs of services provided do not
violate WTO provisions. Cambodia is aware that many  developing WTO Member countries, including in
the Asian region, apply such fees.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
Question 20
As indicated in the Cambodia Factual Summary, th e importation of many pesticides is prohibited.
A list of pesticides banned from use in Cambodia is shown in Table 4.  Some of the pesticides, such
as ethoprop, isoxathion, methamidophos and methomyl, are still used in many countries.  Could
Cambodia please provide risk assessment reports on the banned pesticides.  We would alsoappreciate knowing the quantities of pesticides to which the restrictions apply and the reasons for
their restriction.
Answer:   
The pesticides banned for use in Cambodia can be extremely harmful to human health. Article 14 of
Sub-Decree No 69 on Standards for and Management of agriculture inputs states that “Pesticides whichare included in the MAFF list of banned pesticides, pesticides imported without permission from MAFF
and pesticides belonging to Toxicity / Hazard Class I, according to WHO classification, are not allowed
for registration, except in case of emergency or fo r special purposes as determined by the MAFF.
Cambodia is not presently in a position to undertake risk assessment, but would greatly appreciate
assistance in developing that capacity.
Official import statistics shows that the quantity of imports of the banned products is zero.
Please also see answers to Questions 9 and 12.WT/ACC/KHM/20
Page 8
Question 21
As indicated in the Factual Summary, for the importation of agricultural inputs (principally
pesticides and fertilizers) and pharmaceutical pro ducts and materials, in accordance with the Law
on Drug Management of 9 May 1996 and of 31 March 1999, the importers and the products should
be separately registered with different competent authorities.  However, a total of only fifteen
companies were authorized to import agricultura l inputs and ninety to import pharmaceutical
products and materials.  We are concerned that the Law on Drug Management and the
registration regime that it stipulates constitutes an indirect restrictive factor or even a non-tariff
measure.  What is Cambodia’s justification for instituting such a restrictive regulation?
Answer:  
Please refer to Sub-Decree No 69 on Standards for and Management of agriculture inputs: its Article 5
provides that “Any physical or juridical person that intends to manufacture or import, or exportfertilizers shall be required to obtain a permit from MAFF”.
Please refer to Sub-Decree No 69 on Standards for and Management of agriculture inputs: its Article 12
states that “Any physical or juridical person who di d, does and wishes to do business in pesticides should
register their products and obtain the permit from MAFF”.
Cambodia has a small market, and the number of firms engaged in these operations cannot be expected
to be large. As regards agricultural inputs, any company that applies and which, in the case of pesticides,
can meet safety requirements, will be granted authorization. As regards pharmaceutical products, any
firm that has sufficient office, storage and air-conditioning facilities and the presence of pharmacists will
be granted authorization. It should be noted that the number of firms registered to import
pharmaceuticals appears to be larger than the market will bear. In 2002, although 90 firms are authorizedto import pharmaceutical products, in fact only 30 engaged in import trade.
Question 22
In reference to Question 3 in document WT /ACC/KHM/17, the pharmaceuticals and medical
materials licensing system is "also to control and reduce the illegal imports of pharmaceuticals
…".  Does the reference to "illegal" simply refer to situations where a license has not beenobtained?
Answer:
“Illegal” means goods that are smuggled, counterfeit, or expired.
Question 23
Under agricultural inputs, the purposes of fertilizer licensing are not identified.
Answer:
Licensing of fertilizer is required to ensure quality in order to minimize environmental risk through soil
degradation, acidity, or salinity.WT/ACC/KHM/20
Page 9
Question 24
Concerning Question 5 in document WT/ACC/KHM/17, it is stated that this question is not
applicable, even though the quantity/value of  pesticide imports are restricted according to
Question 3 of the same document.
Answer:
Please see the answer to Question 9.
Question 25
Concerning Question 9 in document WT/ACC/KHM/17, no detail is provided as to information
requirements for pesticide import applications.
Answer:
Information requirements for pesticides import applications are the following:
- Name and address of the Company
- Specification of pesticides identity (Common name, Trade name)
- Quantity of pesticides to be imported
- Country of origin
- Customs entry point for shipment.
Please also refer to document WT/ACC/KHM/17/Rev.1.
(h) Customs Valuation
Question 26
Given that Cambodia will apply the Customs Va luation Agreement on accession to the WTO, is
Cambodia aware that an appropriate notification request in relation to a reservation in respect of
minimum customs values (in accordance with par agraph 2 of Annex III to the Agreement) should
be made as soon as possible?
Answer:  
Cambodia will make the necessary notification request shortly.
Question 27
Can Cambodia confirm that:(a) relevant draft legislation on customs valuation;
(b) any request it may introduce with respect to transitional arrangements (retention of
minimum values); and
(c) an action plan to fully implement the Customs Valuation Agreement;
will be available before accession?WT/ACC/KHM/20
Page 10
Answer:
(a) The draft Law on Customs, which includes in it s Article 21 valuation provisions (see below), has
been made available to members of the Working Party. The necessary implementing regulations
are being drafted.
(b) Cambodia requests transitional period (Article 20, paragraph 1, of the Customs Valuation
Agreement) including the retention of minimum customs values (Annex III, paragraph 2 of the
Customs Valuation Agreement)
(c) A revised Action Plan on the Implementation of the WTO Valuation Agreement has been
submitted to members of the Working Party.
Excerpt from the Draft Law on Customs:
“Article 21:
A. The Customs value of imported goods shall be the transaction value. That is, the price
actually paid or payable for goods when sold for export to Cambodia, subject to the
provisions contained in Prakas issued under (H) of this Article determined in accordance
with the provisions of Annex 1 to this Law. The sequential methods of customs
valuation are as follows, in accordance with the provisions of Annex 1 to this.
B. If the Customs value of the imported goods cannot be determined under the provision of
(A) of this Article, the customs value shall be the transaction value of identical goods.
C. If the customs value of imported goods cannot be determined under the provisions of
(A) and (B) of this Article, the Customs value shall be the transaction value of similar
goods.
D. If the customs value of imported goods cannot be determined under the provisions of
(A), (B), and (C) of this Article, the custom s value of the imported goods shall be based
on a deductive method.
E. If the customs value of imported goods cannot be determined under the provisions of
(A), (B), (C), and (D ) of this Article, the customs value of imported goods shall be based
on a computed method.
F. The order of application of (D) and (E) of this Article may be reversed at the request of
the importer.
G. If the customs value of the imported goods cannot be based on the provisions of (A) (B)
(C) (D) and (E) of this Article, the cust oms value shall be determined by using
reasonable means consistent with the principles and the provisions as referred to in (A)
(B) (C) (D) and (E) of this Article on the basis of available data in the Customs Territory
subject to certain limitations.
H. All matters related to the determination of Customs value are regulated by Prakas of the
Ministry of Economy and Finance.”WT/ACC/KHM/20
Page 11
Explanatory note:
Establishes the basis for determining value for duty of imported goods, consistent in accordance
with WTO Valuation Agreement requirements. The majority of goods will be valued for
customs purposes based on the transaction value (method one).  However, in cases where this
method cannot be used because the conditions required are not met (including such situations assales between related persons, where there are restrictions on the disposition or use of the goods
by the buyer, or where the sale is subject to a condition for which a value cannot be determined)
then the other methods are used in sequential order.  The details of the methods and their
application will be contained in prakas issued by the Ministry of Economy and Finance.
Question 28
Cambodia indicates its action plan on customs valuation in table 6(a) in the Factual Summary.
Certain elements in this table would require revi sion in the light of the obligations assumed by
Cambodia on accession.
Answer:
Please see the revised Action Plan, document WT/ACC/KHM/13/Rev.1.
Question 29
Cambodia indicates its transition plan for th e implementation of the WTO Customs Valuation
Agreement in table 6(b) in the Factual Summar y.  This table suggests that the Valuation
Agreement would be successively extended to different categories of trader/importer and of goods
over a period of 5 years.  The sequenced applic ation of the Valuation Agreement in this manner
raises several issues, and would not be consistent  with application of the Agreement on accession.
It would also raise questions as to the eligibility of an application for the retention of minimumvalues.
Answer:
Due to widespread practice of under-declaration and under-valuation by importers, there is a great risk of
loss of revenue if Cambodia moves immediately and comprehensively to the transaction value.
Transitional arrangements are needed including the establishment of a risk management system, inparticular as regards valuation compliance. Different categories of trader/importer and of goods will be
established based on their own valuation complian ce records. It is acknowledged that during this
transition period Cambodia’s valuation practices will not be fully consistent with all of its WTO
obligations. It is Cambodia’s understanding, however, th at the purpose of a transition period is precisely
to allow some temporary departure from full compliance, when that departure is part of an orderly,
viable and comprehensive shift from extensive use of minimum and administered values to full use of
transaction values. Cambodia believes that  its Action Plan meets that criterion.
Please also see the decision of the General Council on “Accession of Least-Developed Countries” of
10 December 2002, paragraph 1.II, which states that “transitional periods/arrangements shall be
accompanied by Action Plans for compliance with WTO rules”.  This clearly indicates that an LDC may
not be in full compliance upon accession.
Question 30
In the Timeframe column of Table 6 (b) on p age 64 of the Factual Summary concerning the
Transition Plan proposed by Cambodia for th e implementation of the WTO Customs ValuationWT/ACC/KHM/20
Page 12
Agreement, across four rows we read "By end of second year", "By end of third year", "By end of
fourth year" and "By end of fifth year".  In the Annex of document WT/ACC/KHM/13,
26 July 2002, however, a different form of words is used, viz: "At end of…", instead of "By end
of…".  We find this somewhat confusing.  We understand "By" to mean "before", or "not later
than", and "At" to mean "that exact point in time", which are different time limits.  CouldCambodia please confirm which of these meanings  applies and clarify whether or not any change
has been made by its administration to th e Timeframe concerning the Transition Plan.
Answer:
The language in the Annex should read  “by the end of…”.
Question 31
The content of the new law on Customs will be  a critical factor in evaluating Cambodia's
application for WTO membership.  We would like to see this law in draft as soon as possible inorder to maintain a rapid pace to the accession pr ocess.  What is the status of the law now, and
when can Cambodia circulate it to the Working Party for review and comment?  The ability to
grant transitions will depend on appreciation of the direction of Cambodia's efforts towards full
compliance with the Agreement.
Answer:
Please see the answer to Question 5.
Question 32
There seems to be a discrepancy between Cambodia's replies to questions 24 and 26 in document
WT/ACC/KHM/12.  In Question 24, Cambodia states it will seek a 5-year transition to phase out
minimum values.  However, in Question 26, Cambodia  states it will only seek a transition period
for the application of valuation hierarchy.  Can Cambodia please clarify?
Answer:
Please see the revised Action Plan (document WT/A CC/KHM/13/Rev.1) that indicates that Cambodia
will require 5 years to phase out completely minimum values, and 5 years to phase in completely the use
of the valuation hierarchy.
Question 33
Can Cambodia clarify how it would use a transition period to implement the valuation provisions
of the Customs Valuation agreement, i.e., specify a timeline of activities that will bring it to
compliance within the transition period?  We would also recommend that Cambodia examine
work programs previously approved in the WTO Committee on Customs Valuation to assist in
planning its transition work.  Without this information, it is difficult for us to assess the
implications of such a transition on the us e of transaction value for customs valuation.
Answer:
Cambodia has examined several work programs previously approved in the WTO Committee on
Customs Valuation. Please see Cambodia’s revised Customs Valuation Action Plan.WT/ACC/KHM/20
Page 13
Question 34
The commitments Cambodia will ultimately have  to make in the area of customs valuation,
including the elimination of minimum prices and on the issue of valuation hierarchy, are the same
commitments undertaken by developing countries already in the WTO.  Cambodia should request
the necessary specific technical assistance to im plement the agreement as soon as possible, and as
far as possible before or upon accession.  We will ultimately like to see an action plan for
implementation of the Customs valuation agreement which is based upon technical assistance
commitments that Cambodia has already secured .  (Question 24 of document WT/ACC/KHM/12).
Answer:
Please see Cambodia’s revised Customs Valuation Action Plan, which details the steps that are to be
taken, and the assistance required. Cambodia would welcome any additional advice and assistance on
this plan.
 (j) Pre-shipment inspection
Question 35
Given that the current PSI contract expired in October 2002, has it been extended, and if so has
the PSI fee been brought into line with  the requirements of GATT Article VIII?
Answer:
Please see the answer to Question 36, below.
Question 36
What is the current status of Cambodia's PSI cont ract (paragraph 73 of the factual summary)?  If
there is a new contract, Cambodia must, as a WT O member operates its PSI Regime in conformity
with WTO Agreements, including but not limi ted to the WTO Agreement on Preshipment
Inspection.  These WTO obligations are the respo nsibility of the Government of Cambodia, and
compliance with the obligations must be enforced by Cambodia in the conduct of the PSI entity.
For example, is the PSI fee applied commensurate with the cost of service rendered, or is it still
based on the value of the goods inspected? (paragraph 76.)
Answer:
The PSI contract has been extended by one year until October 2003, in accordance with the provisions of
the existing contract.  The current contract requires that all  activities of the PSI firm comply with the
provisions of the WTO PSI Agreement. The fee at present is based on the value of the shipment,
however, as stated previously, if the contract is renewed, the fee structure will be adjusted to reflect the
cost of the services rendered.  A decision to this effect was reconfirmed by the full Ministerial Cabinet
Meeting of 20 December 2002.
Question 37
How will Cambodia ensure the right of appeal to th e government in the event of a challenge to the
PSI firm's measures under WTO rules?WT/ACC/KHM/20
Page 14
Answer:   
The PSI contract and the implementing regulations (Prakas) provide for the establishment by the
Minister of Economy and Finance of a Dispute Settlement Working Group to respond to any appeals
made against an opinion issued by the PSI company or for any breach of confidentiality.
Article 24 of the draft Law on Customs provides for appeals against customs decisions, first to the
Customs and Excise Department and subsequently to a Customs Tariff Committee and finally to the
court. The Committee provides an independent appeal process for importers and exporters and will be
appointed by Anukret.
Question 38
Is Cambodia aware that as a User Member, it w ill be obliged to ensure that with respect to
preshipment inspection operations, it will have to  ensure that the obligations which it accepts with
respect to the WTO Customs Valuation Agreement are respected.
Answer:
Yes, Cambodia is aware of this.
Question 39
Will Cambodia confirm that the fees charged with respect to preshipment inspection will be
terminated, including the penalty for non-inspected goods?
Answer:
Should the contract be extended, all of its provisions will be in accordance with the relevant WTO
Agreements.  Cambodia will continue to charge a fee that reflects the costs involved.  Penalties will
continue to be applied in cases where importers ignore the requirements for PSI inspection.  Such
penalties are needed in order to reduce duty evasion and to protect revenue and the competitive situationof compliant importers.
(k) Application of internal taxes on imports
Question 40
Have there been any recent developments concerni ng the establishment of an action plan and
timeframe for extending the VAT system to the remaining provinces?
Answer:    
In 2000, Cambodia applied VAT in five provinces. In 2002, the coverage of VAT was expanded into 5
additional Provinces, so that it is now collected in 10 provinces and the Municipality of Phnom Penh. In
preparing for the 2002 expansion, the Ministry of  Economy and Finance undertook in 2000 and 2001
surveys of taxpayers in all provinces. On the basis of these surveys, the 2002 expansion of coverage
included all provinces in which there were taxpayers which met the VAT threshold, even though in some
provinces included in the expansion the number of such taxpayers was very low (in Kampong Speu therewere 11; in Koh Kong, there were 9). It is not feasible to establish a fixed time frame for extending VAT
into the remaining provinces. This depends entirely on the pace of their future economic development
and the emergence in them of taxpayers meeting the threshold criterion.WT/ACC/KHM/20
Page 15
Question 41
Regarding the responses to questions 39 and 41 of document WT/ACC/KHM/12, we appreciate the
explanation of Cambodia's VAT system.  Howeve r, with respect to question 41, Cambodia must
ensure that any VAT is applied in a non-discrimi natory fashion to domestically produced and
imported agricultural products.  We seek specif ic information from Cambodia on its plans for
addressing this issue, and reflection, e.g., in paragraph 56 of the factual summary, that Members
have urged Cambodia to eliminate any discri mination in the application of the VAT to
domestically produced and imported products.
Answer:
In WT/ACC/KHM/12, the last sentence in the response to Question 39 and the answer to Question 41
were inadvertently misleading.
Cambodia grants VAT exemptions to 10 categories of agricultural inputs and/or “raw agricultural
products”, as described in the answer to Question 39 in ACC/KHM/12. The exemption applies to
imported as well as to domestically produced goods, as stated in the answer to Question 39. Cambodia
does not grant VAT exemptions to any other agricultural products or inputs. VAT on all agricultural
products is identical for imported and domestically produced goods.
In order to dispel any possible ambiguity on this point, the Council of Ministers, at its full Cabinet
Meeting on 20 December 2002 reaffirmed that “VAT on imported and domestically-produced
agricultural products must be identical.”
Cambodia’s agricultural sector is characterized by small impoverished producers, growing mainly rice,
local fruits and vegetables. There are no traditional large agricultural land owners in Cambodia. As part
of its poverty alleviation and rural development strategy, Cambodia exempts farmers from land andincome taxes, and from the payment of turnover tax or VAT on the first sale of produce that they have
grown. (See WT/ACC/SPEC/KHM/3/Rev.1/Add.1, pg. 18.) Traditional and more recent plantation-type
agricultural entities are subject to VAT. (See, the answer to Question 54.)
(l) Rules of origin
Question 42It would be appreciated if Cambodia could please provide the following information:
(i) Is it obligatory for the origin of an import to be indicated in non-preferential
trade?  We would like to know in which document the origin of the import should
be indicated.  Is it the import declaratio n, the export declaration, the invoice, the
certificate of origin, or another document?  Are any specific types of non-
preferential proof of origin used in Cambodia and, if so, what are they?
(ii) Which authorities of Cambodia are resp onsible for the issuance of certificates of
origin?
Answer:
For non-preferential trade, importers are required to state the origin of the imported product in the import
declaration solely for statistical purposes.
The Ministry of Commerce is the responsible authority to issue certificates of origin.WT/ACC/KHM/20
Page 16
2. Export Regulation
(b) Customs tariff nomenclature, types of duties, duty rates, weighted averages of weights
Question 43
In paragraph 118 of the factual summary, we belie ve it should be noted that Cambodia imposes
taxes on the export of purebred cattle and swine.
Answer:
Yes, this could be noted. In our current tariff rates (tariff line: 0106.00.10) there is a 10 per cent export
duty.
(f) Export financing, subsidy and promotion policies
Question 44
We are pleased to note (paragraph 88 of the factual summary) that Cambodia's new amended
investment law will address the concerns of WTO members concerning the use of prohibited
subsidies as an investment incentive.  Recognizing Cambodia's right to maintain such subsidies as
a Least Developed Country, the measures could still be actionable under the WTO SCM
Agreement.  This would be a detriment to the predictability and transparency that investors and
buyers look for.
Answer:
Cambodia takes note of this comment.
Question 45
The responses to questions 3 and 6 of docume nt WT/ACC/KHM/12 indicate that imports of
"intermediate goods" and "raw materials" for use by export oriented processing and agro-
industries such as food canning, edible and industrial oil milling or refining, are exempted fromimport duties.  Please indicate the specific agricu ltural products that have been imported duty-free
under this program.
Answer:
As a basic principle, all approved projects are eligible for duty exemption of imported construction
materials, machines and equipment, raw materials and intermediate goods. In that sense, all export-oriented projects, processing projects and agro-industries are eligible for the above duty exemption. In
Cambodia, there are so far no activities in food canning, edible and industrial oil milling or refining, thus
there are no specific agricultural products that have been imported duty free under this program.
Question 46
In its reply to question 48 of document WT/ACC/KHM/12, Cambodia states that it is considering
implementation of a duty drawback scheme consistent with the Agreement on Subsidies and
Countervailing measures.  We would encourage Cambodia to do so.  The existing system ofremission of import fees and waiver of duty for certain goods used by certain investors is highly
complex, lacking in transparency, and prone to abuse.  The current programs do not appear to
qualify as valid duty drawback schemes, and they should be notified as subsidies until a dutyWT/ACC/KHM/20
Page 17
drawback program that limits rebates to the amo unt of tariff and tax incorporated in the exported
product is in place and functioning.
Answer:
Please note that, as an LDC, Cambodia experiences insuperable difficulties in the introduction and
operation of an effective duty drawback system. Cambodia cannot take on a commitment regarding sucha system. The relevant current programs will be notified to the WTO as required.
3. Internal policies affecting foreign trade in goods
(b) Technical regulations and standards, including measures taken at the border with respect
to imports
Question 47
We welcome Cambodia's statement (paragraph 95 of  the factual summary) that it would fully
implement the TBT Agreement upon accession.  We note that Cambodia will likely need assistance
to establish a system for the development and en forcement of technical regulations and conformity
assessment procedures consistent with WTO rules.  However, we do not believe that
implementation of the TBT Agreement should be  made contingent on the provision of future
technical assistance. Steps should be taken no w, for example, to ensure that any technical
regulations in place are publicly available, and to identify what action is  needed to ensure that
notice of any future technical regulations are pub lished as proposals for comment in the official
gazette.  Is technical assistance really needed for such basic actions?
Answer:
The transparency measures mentioned in the question are being addressed, but technical assistance
would greatly accelerate their implementation. Cam bodia would like to emphasize that substantive
matters relating to the establishment of an effective system of technical regulations, standards and
conformity assessment will require extensive technical and financial assistance. Cambodia is also taking
transparency measures consistent with the TBT requirements. As a recent development, Cambodia has
concluded two projects with UNIDO on strengthening capacities related to metrology, testing,
accreditation and conformity.
Question 48
The TBT Agreement does not oblige Cambodia to establish standards, technical regulations or
conformity assessment procedures.  The provisions of the Agreement apply, however, when such
measures are developed and applied (enforced).  The basic obligations require only the
identification of a central contact point for information - and this contact point ("enquiry point")
need not require the establishment of an extensive bureaucracy.
What is critical is that it be responsive to  requests for information, as required under the TBT
Agreement.  This central contact point may make referrals to other agencies, or make requests of
other agencies, in order to respond to requests received.  Other features of a WTO-consistent
standards regime may be developed later, based on need and with the provision of technical
assistance.
Cambodia should begin now to think about how to  best organize its functions to abide by WTO
rules in this area - technical assistance can facili tate development of necessary institutions, but isWT/ACC/KHM/20
Page 18
unlikely to be able to prescribe, from the outsid e, the best approach for Cambodia to take on some
of these basis questions.
Answer:
The Government of Cambodia has approved the establishment of the enquiry point for TBT under the
Department of Industrial Standards of Cambodia.  As an LDC, Cambodia will need assistance in
developing information systems and human capacities as mentioned in the revised TBT Action Plan.
Cambodia accepts that its standards regime may be developed later, and, in accordance with  Article 2 of
the TBT Agreement, the Department of Industrial Standards will establish standards, technical regulation
and strengthen the conformity  assessment procedures. However, the capability, infrastructure, and skills
of the Department of Industrial Standards of Cambodia are still limited. Referring to the article 11 and
12 of the TBT Agreement, Cambodia strongly requests WTO Members to provide all necessary
assistance.
Question 49
We also question why Cambodia's TBT action plan should require a two-year period for
"readjusting technical regulations, standards,  etc.".  Reviewing the appropriateness and
effectiveness of particular standards and technical regulations should be done on an ongoing basis
- this is good standards practice, and simply good regulatory practice, as outlined in TBT
Article 2.3.
Answer:
Cambodia agrees that reviewing the appropriateness and effectiveness of particular standards and
technical regulations should be done on an ongoing basis. Cambodia understands that this is a routine
matter in countries with established TBT regimes.  Cambodia’s TBT Action Plan  states that Cambodia
would need two years  for readjustment, because Cambodia does not have experience in standards and
regulations, and in the way that WTO rules in these areas need to be applied.
Question 50
We look forward to seeing the draft Law on Indust rial Standards before it is adopted, in order to
have a better idea of Cambodia's plans and to provide  comments that may be helpful.  As part of a
transparent regulatory process, we encourage Cambodia to notify WTO Members of proposed
regulations before adopting them, and carefu lly consider Members' technical comments on
proposed regulations before they become final.
Answer:
Cambodia will be very happy to circulate the draft law on Industrial Standards for comments before it is
adopted. In this regard, Cambodia needs assistance as mentioned in the TBT Action Plan. Cambodia will
endeavour to notify in advance proposed regulations.
(c) Sanitary and phytosanitary measures
Question 51
Regarding questions 56 and 61, please clarify whether the drafts of Cambodia's Sub-Decrees on
Quarantine and Sanitary Inspection of Animal and Animal Products are available, since question
56 refers to completion of the draft in 2003 and ques tion 61 refers to submission of the draft to theWT/ACC/KHM/20
Page 19
Council of Ministers in July 2002.  These documents are essential to completing Cambodia's
accession process, and we look forward to receiving them as soon as possible.
Answer:
A preliminary draft of this sub-Decree was made available to members of the Working Party in
November 2002 (Please see document WT/ACC/KHM/19). Since then, the draft has been furtherreviewed and amended to ensure conformity with the WTO SPS Agreement, IOE standards, the
International Animal Health Code, International A quatic Animal Health Code, Manual of Standards of
Diagnostic Tests and Vaccine. This revised draft has been made available to the Secretariat.
Question 52
Regarding Cambodia's response to questions 56 through 62, we are willing to explore with
Cambodia technical assistance to address it s concerns about implementation of the SPS
Agreement.  However, implementation of the SPS Agreement is a key element of Cambodia'saccession and a five-year transition period without specific guidelines on implementation or details
on why the transition is necessary raises signific ant concerns.  What efforts has Cambodia made to
simplify its implementation of the SPS Agreement?  We would encourage Cambodia to consider
adoption of international standa rds where such standards meet Ca mbodia's needs.  In addition,
where international standards may not address Ca mbodia's needs, we would encourage Cambodia
to consider drawing upon WTO consistent standard setting work of other governments.
Answer:
Cambodia greatly appreciates the offer of technical assistance in these areas.
Please refer to the revised Action Plan for the Implementation of the SPS Agreement, which contains
very specific guidelines and details regarding implementation.
Cambodia would like to inform Members of the Work ing Party that the Sub-Decree on Plant Quarantine,
and the Sub-Decree on Sanitary Inspections of Animal and Animal Products were adopted by the
Council of Ministers on 14 February 2003.
Cambodia will draw upon international standards and the work of other governments as appropriate.
Cambodia would like to inform members of the Working Party that Protocol 8 on Sanitary and
Phytosanitary measures of the ASEAN Framework Agreement on the facilitation of goods in transit has
been ratified by the National Assembly and Senate.
Question 53
Why is it necessary to have a two-year period for "readjusting technical regulations, standards,
etc."  The review of regulations and standards is something that should be done on an ongoing
basis.  We believe that a more detailed implem entation plan than the one provided in document
WT/ACC/KHM/15 can help address some of these issues.  Cambodia should seek technicalassistance in this regard.
Answer:
Please see the response to Question  49. Cambodia believes that its revised SPS Action Plan, which
addresses the SPS Agreement, is very detailed. Cambodia indicated in both its TBT (in document
WT/ACC/KHM/14 and KHM/14/Rev.1) and SPS (i n document WT/ACC/KHM/15 and KHM/15/Rev.1)WT/ACC/KHM/20
Page 20
Action Plans its specific technical assistance requ irements and hopes that Members will be fully
responsive to these requirements.
(e) State-trading practices
Question 54
Has Cambodia completed its list of remain ing state-owned enterprises?  (document
WT/ACC/KHM/12, Question 65).  When can we expect notifications of these enterprises, including
the information sought in document WT/ACC/1 in the questionnaire?
Answer:
Cambodia notified in its Memorandum on the Foreign Trade Regime (document WT/ACC/KHM/2) that
there it has no state-trading enterprises as de fined by Article XVII of GATT 1994.  Cambodia
understands that there is no WTO requirement to notify state–owned enterprises.
For transparency purposes, Cambodia is pleased to make available to members of the Working Party: (a)
information concerning the state-owned rubber plan tations; and (b) updated information concerning the
privatisation program of state-owned enterprises.
(a) Information concerning the state-owned rubber plantations:
The seven rubber plantation companies (Chup rubber plantation, Krek rubber plantation, Memot
rubber plantation, Snoul rubber plantation, Chamcar Andoung rubber plantation, Boeng Ketrubber plantation and Peam Chaing rubber planta tion) were transformed from state-trading
enterprises into state–owned public enterprises under the Ministry of Agriculture, Forestry and
Fisheries, according to individual Sub-Decr ee governing each company (Sub–Decree No. 13-19,
15 March 1999).
At present, each rubber plantation enterprise is managed by a Board whose members consist of
representatives of the Ministry of Agriculture, Forestry and Fisheries, the Ministry of Economy
and Finance, the Council of Ministers, the Governor of the province in which the plantation is
located, and the Director-General of the rubber plantation.
These state-owned enterprises do not receive any privilege from the Royal Government of
Cambodia, in accordance with the following articles of the above-mentioned sub-decrees:
- Article 1: “A state-owned enterprise is a legal entity which is administratively and
financially autonomous.”;
- Article 3: “Within its operation, the rubber plantation, in principle, have to operate in the
same manner as any business in the private sector.  The rubber plantation should be
responsible for a healthy management and progress of its own business.”;
- Article 5: “The rubber plantation shall pay taxes to the Government according to the
existing law and the regulations.”.WT/ACC/KHM/20
Page 21
STATISTICAL INFORMATION
(Figures for all seven state-owned rubber plantations aggregated)
Description 1999 2000 2001 2002
Area of rubber plantation (ha) 39,718 34,094 33,589 29,874
Dry latex production (T) 45,262 42,369 38,652 32,364
Processed product (T) 46,214 43,794 42,219 33,247
Sales (T) 44,376 40,066 35,672 36,774
Krep stock (T) 1,838 3,727 6,880 2,137
Source: Ministry of Agriculture, Forestry and Fisheries
(b) Ongoing privatisation programmes:
With reference to the Circular by Council of Ministers (No: 2018, of 26 December 2002), the
Royal Government of Cambodia has decided to wi thdraw completely from all seven state-owned
rubber plantation enterprises and the Agricultural Input Company by the year 2006.
With regard to the state-owned rubber plantation enterprises, an auditing exercise is currently
being undertaken with a view to determining wh ether these state-owned enterprises should be:
closed down completely; sold to the private sector ; or made subject to a joint venture, with the
private sector holding the majority of shares (e.g. 51 per cent).
As regards the Agricultural Input Company, the Government will establish a national committee
with a view to setting up a programme leading to the complete divestment of Government
ownership by the year 2006.
Please also see the ANNEX 1 on Updated List of State-Owned Enterprises.
Question 55
We note in response to Question 11 in document WT/ACC/KHM/12 on the Agricultural Inputs
Company (State-owned enterprise), Cambodia states  that one of the activities of this company is
the "Import, purchase, sale agricultural inputs such as fertilizers, pesticides, seeds and other
equipment used as means of agricultural producti on".  It also states that the Government is
planning to import fertilizers in 2002 and that it  would be done through private companies.  In
relation to purchasing of agricultural inputs (i n this case fertilizers), what part does the
Agricultural Input Company play in the process vis-à-vis the private tr aders?  Is there free
competition between private traders and the state trading enterprise?
Answer:
The Agricultural Inputs Company is not a state trading enterprise in terms of Article XVII of GATT
1994. The Agricultural Inputs Company operates on a strictly commercial basis. For example, with
regard to the imports of fertilizers planned for the year 2002, the Agricultural Inputs Company called for
bids by interested private-sector importers to supply 15,000 tonnes of fertilizers.  The actual purchaseswill be completed during 2003.
In practice, the Agricultural Inputs Company operates under a free competition against the private sector
enterprises. Cambodia would like to refer to the st atement of the Royal Government concerning the
implementation of the Asian Development Bank  (ADB) agriculture program loan (No.02/DG,
23 December 1998), paragraph 7 ( Fertilizer Pricing Formulation ) which states that “the Royal
Government of Cambodia has adopted fertilizer-pricing formulae based on Full-Cost Pricing. TheWT/ACC/KHM/20
Page 22
Cambodian Agricultural Materials Corporation (COCMA) or its suc cessor, the Agricultural Inputs
Company, will sell fertilizers under Full-Cost Pricing, without government subsidy or price fixing”.  As
stated in the declaration of the Ministry of Agriculture, Forestry and Fisheries (No. 3671, MAFF,
7 August 1997), the Ministry ensures that the sales of fertilizers and other agricultural inputs by the
Agricultural Inputs Company are made at market  prices, and receives no government subsidy.
Cambodia would like to refer to the declaration of the Ministry of Agriculture, Forestry and Fisheries
No: 3671 MAFF dated 7 August 1997 which states that “The Ministry of Agriculture, Forestry and
Fisheries has decided to reform the operation of COCMA (later the Agricultural Input Company) so that
sales of fertilizers and other agricultural inputs to interested buyers will be at market prices without
government subsidy.
Cambodia would also like to refer to the Circulation of the Royal Decree implementation No.005 dated
27 December 1997 on the general statute of public enterprises Part 1 Public Enterprises, Chapter 1Common Provisions for all Public Enterprises, Section 1: General Dispositions, Para 8.1 Domain of
Activities, where it is stated that:
“Public enterprises undertake economic activities in the same way as private enterprises. Their general
activities are within a market environment characterized by competition. Public enterprises must expand
and gain profit from own activities by using their ow n resources (sale materials or services). Public
enterprises must be financially autonomous”.
Cambodia would like to refer further to the stat ement of the Royal Government concerning the
implementation of the ADB agriculture program loan, No 02/DG dated 23 December 1998, Para 7
Fertilizer Pricing Formulation where it is stated that “The Royal Government of Cambodia has adopted
fertilizer-pricing formulae based on Full-Cost Pricing. The Cambodian Agricultural MaterialsCorporation (COCMA) or its successor, the Agricultural Inputs Company will sell fertilizers using Full-
Cost Pricing without government subsidy or price fixing.
In conclusion, the Agricultural Inputs Company (State-owned enterprise) undertakes economic activities
similar to private traders / private enterprises and there is free competition between private traders /
private enterprises and the Agricultural Inputs Company.
4. Policies affecting foreign trade in agricultural products
Question 56
As one of the net food importing countries, we consider that the Rice Reserve for Food Security
has a significant importance.  We are naturally in terested in Cambodian policy to establish Rice
Reserve for Food Security.  According to the document WT/ACC/SPEC/KHM/3/Rev.1/Add.1
(page 17), the main objective of Cambodian rice reserve policy is to prepare to rescue future
victims of natural disasters, such as flood.  What  are the specific functions of the Green Trade
Company (GTC) and Ministry of Commerce, as we ll as their relationship?  What is the legal
status of GTC?
Answer:
The Green Trade Company (GTC) was established by sub-Decree #78 dated 23 November 1998, and
merged four state-owned companies: Cambodian Food Company; Material and Equipment Company;Agricultural Products Company; and Camtran Company.  The GTC is under the technical supervision of
the Ministry of Commerce, and the financial supervision of the Ministry of Economy and Finance.WT/ACC/KHM/20
Page 23
The GTC has an initial capitalization of Riel 12 billion (approximately US$ 3 million) subscribed by the
Government in the year 1998.  As the return on subscribed capital, the GTC pays annually to the
Government an amount equal to 1 per cent of its total sales or 20 per cent of the gross profit for the year
concerned, whichever higher.  The GTC may borrow from the banking system to finance its working
capital and to meet other needs.  The Royal Government may provide a guarantee to such loans, shouldit be approved by the Minister of Economy and Finance.  Interest rates on loans to the GTC are market
rates.  The GTC receives no financial contribution (other than the initial capital) or advantage from the
Government or from any public funds. (Please note that transactions related to the Rice Security Reserve
are on a commercial basis as far as the GTC is concerned. See below.)
The GTC, like any private company, is free to engage in any manner of trade, domestic or foreign, in
goods and services.  It is authorized to buy and sell foodstuffs and other commodities, and to provide
services such as grain storage, grain brokerage, and rice milling.  To date, its purchases and sales ofcommodities have been limited to rice.
The GTC’s purchases and sales may have the effect of moderating the domestic rice price movements, as
it tries to buy when rice is in abundant supply (and prices are low) and sells when commodities are
scarce (and prices are high).  Both purchases and sales are made at market prices.
The main headings in the income statement of GT C for 2001 are presented below (the statement for
2002 has not yet been finalized).
Green Trade Company, Balance Sheet (Riel, 2001)
Income 1,868,354,464
Total sales 1,785,210,280
Interests on capital 83,144,184
Expenditure 1,795,232,816
Gross profit 73,121,648
Profit distribution to government 17,852,103
Net profit 55,269,545
(Pour memoire: VAT payments R. 99,927,440)
The table below provides information on GTC’s rice trading for the year 2001.
Quantity (kg) Value (Riel)
I.  PURCHASE
1.  Paddy rice 2,201,228 684,997,484
2.  Milled rice 650,000 331,372,500
TOTAL 1,016,369,984
II.  SALES
1.  Milled rice 1,516,300 934,000,493
2.  Other services 851,209,787
TOTAL 1,785,210,280
In addition to its commercial transactions, the GTC participates in the Cambodian Rice Reserve Policy.
The objective of the Rice Reserve is to rescue victims of natural disaster, who have urgent needs for
emergency food aid. Every year the government esta blishes a budget envelope designating amounts it
estimates will be required for emergency assistance. The GTC then makes purchases within the limits
established by this envelope, using its own (or commercially borrowed, see above) funds. The purchasesWT/ACC/KHM/20
Page 24
are at current market prices. When and as the need for emergency food supplies materializes, the
responsible agency, the National Committee for Disa ster Management (NCDM), purchases the amounts
needed from the GTC, using the government funds earmarked in the budget envelope. The GTC charges
NCDM at a rate equal to its costs plus a very sm all mark-up. NCDM makes the rice available to needy
persons free of charge. The table below provides the budget envelopes established for emergencyassistance for the period between 1998 and 2002.
Rice Security Reserve (Riel)
1998 1999 2000 2001 2002
1,000,000,000 1,000,000,000 1,000,000,000 1,640,000,000 3,280,000,000
Source: Ministry of Commerce
Question 57
The same document, WT/ACC/SPEC/KHM/3/Rev.1/Add.1 (page 17), explains that within the
main objective, the GTC also engages in purch asing and selling rice when a favourable market
condition occurs, in order to maintain its readi ness for the rescue operation.  Could you please
clarify the balance of payment (income and expendi ture) of these activities; rice purchasing and
selling?
Answer:
Please see the answer to Question 56.
Question 58
Cambodia's response to question 39 of document WT/ACC/KHM/12 leads us to believe that the
application of VAT to agricultural products in Cambodia is not consistent with the principle of
National Treatment.  We would like to know how Cambodia intends to address this disparity.
Answer:
Please see the answer to Questions 41.  In addition, the reply to Question 39 states that farmers selling
their own products do not pay VAT.  This is simply because such transactions do not meet the thresholdcriterion.
Question 59
In paragraph 122 of the factual summary, Cambodia indicates that, as a least developed country,
it does not need to make commitments on agricu ltural export subsidies.  While we recognize
Cambodia's access to flexibilities in the agreement on agriculture, we would still urge Cambodia tocommit to refrain from using agricultural export subsidies, or any other trade-distorting
measures.
Answer:
Cambodia takes note of this comment. The Doha Ministerial Declaration states that Members agreed to
"reductions of, with a view to phasing out, all forms of export subsidies". Cambodia will commit to bindexport subsidies at zero, except those that would be allowed for developing countries as a special and
differential treatment, at the same time as the completion of the phasing-out of all forms of export
subsidies by all WTO Members.WT/ACC/KHM/20
Page 25
Question 60
Ministers agreed at Doha to negotiations aimed at "phasing out all forms of export subsidies" for
agriculture.  While recognizing Cambodia's LDC status, we consider elimination of agricultural
export subsidies globally to be in Cambodia's  interest, and therefore repeat our request for
Cambodia to bind export subsidies at zero.
Answer:
Cambodia takes note of this comment.
5. Policies affecting foreign trade in other sectors
(a) Textiles regime
Question 61
For the record, we would like to correct the information in paragraph 123 of the factual summary.
The United States has placed quantitative restri ctions on 13 categories of apparel from Cambodia
under the terms of our Bilateral Textile Agreement.
Answer:
Cambodia appreciates this correction.
V. TRADE RELATED INTELLECTUAL PROPERTY REGIME
1. GeneralQuestion 62
We appreciate the action plan Cambodia has presented for implementing TRIPS.  We look
forward to working with Cambodia to refine this action plan.  Please provide an update on the
status of the new copyright law which emerged from the Council of Ministers in March 2002 and
the law on Patents, Utility Models and Industrial Designs which Cambodia indicated would bepromulgated in September 2002 (see paragraph 141 of the factual summary).
Answer:
Cambodia has been following the Action Plan submitted to Members of the Working Party, and wishes
to confirm that the following steps foreseen in the Action Plan have been accomplished:
- The Law on Copyright and Related Rights was adopted by the National Assembly on
21 January 2003, and was adopted by the Senate on 13 February 2003. We expect to obtain the
promulgation by His Majesty the King not later than March 2003.
- The Law on Patent, Utility models and Industrial Designs was adopted by the National
Assembly on 28 November 2002 and adopted by the Senate on 31 December 2002. This Law
was promulgated by His Majesty the King on 22 January 2003.
Question 63
Based on work to date and Cambodia's own assessments, we seek a realistic schedule laying out
the measures that Cambodia will take, over ti me, to bring its IPR regime into compliance withWT/ACC/KHM/20
Page 26
specific provisions of TRIPS.  This schedule should be incorporated into Cambodia's protocol of
accession to record the understanding between Cambodia and the Working Party on how
Cambodia will use its transition period.  It will also be a blueprint for the technical assistance that
will make compliance possible within the timeframe contemplated.  By outlining the timeframe
and steps towards compliance, Cambodia will elim inate uncertainty for traders and investors.  We
also seek some specific assurances from Cambodia on its application of measures covered by the
WTO TRIPS agreement during any transition peri od approved, i.e., along the lines described
earlier in the presentation.  We remain ready to work with Cambodia towa rds the earliest possible
implementation of WTO TRIPS Agreement.
Answer:
Cambodia appreciates this comment and wishes to info rm the member states that Cambodia's Legislative
Action Plan contains an assessment of required technical assistance and the time frame for enactment ofindividual IP laws. We understand that this Action Plan will help to reduce uncertainty among investors
and help make known Cambodia's commitment to bring its IP legislation into full compliance with
WTO-TRIPS agreement through the enactment of new IP laws and regulations, and the implementation
of these laws. We also take note of the comment on the need to establish a realistic schedule laying out
measures to be taken by Cambodia to bring its IPR regime to be complied with the specific provisions ofTRIPS, and understand that this schedule will be incorporated into the protocol of accession.
Question 64
We have some specific questions regarding the Dra ft Law on Patents.  Concerning legislation, the
Action Plan for the Kingdom of Cambodia fo r the Implementation of the TRIPS Agreement
(document WT/ACC/KHM/16 of 26 July 2002) indica tes that the Law on Patents, Utility Models
and Industrial Designs was to be promulgated in  September 2002, and that the sub-decree and
implementing regulations under this law would be issued in February 2003.  Please indicate the
status of the draft law and regulations.
Answer:
Please refer to the answer to Question 62 regarding the status of the Law on Patent, Utility Models and
Industrial Designs. Additionally, Cambodia wishes to  inform member states that the Sub-Decree on the
implementation of this law will soon be drafted with the assistance of WIPO. It is anticipated that this
drafting will begin during the first quarter of 2003.
Question 65
Concerning exclusions, the draft Patent Law would exclude from patent protection several items,
including "schemes, rules or methods for doing business" and "computer programs".  Please
indicate why inventions in these areas that otherwise meet the patentability criteria of novelty,inventive step and industrial applicability are to be excluded from patent protection.  How are
these and other exclusions in the patent law consistent with the limited exclusions permitted under
Article 27 of the TRIPS Agreement?
Answer:
Schemes or methods for doing business are not eligible for patent protection to the extent that they lack
practical application. In computer programs, it is algorithms per se that are not eligible for patent
protection. These distinctions will be made clear in the implementing decree.WT/ACC/KHM/20
Page 27
Question 66
Concerning plant varieties, Article 27.3(b) of TR IPS Agreement requires members to "provide for
the protection of plant varieties either by patents or by an effective sui generis  system."  Article 4,
of the Cambodia law does not exclude plants, so it would appear Cambodia is in compliance with
Article 27.3(b).  However, the full content of the patent law exclusions could not be reviewed sinceArticles 6, 7 and 8 contain printing code error s preventing review of these provisions.  No
information was provided that would indicate that  Cambodia has a plant variety protection act or
has adopted the provisions of UPOV.  Please verify that plant varieties are protected by patents or
a plant variety protection law.
Answer:
Plant varieties are excluded from the Law on Patent, Utility Models and Industrial Designs. Cambodia
plans to draft a separate IP law on Plant Varieties Protection with technical assistance of UPOV which isanticipated in March 2003 (please refer to the submitted Legislative Action Plan).
Question 67
Concerning dependent Patent Compulsory Licenses - Articles 56-64 of Cambodia's patent law
appear to provide for a type of dependent patent compulsory license.  However, the grant of such a
license does not appear to include all of the cond itions for the grant of such a license as required
by TRIPS Article 31, especially Article 31(l).  Given that Articles 56-57 were cut off in
transmission and could not be fully reviewed, please clarify that all of the provisions of Article
31(l) are contained within the law.
Answer:
TRIPS –Article 31 (l)Cambodia's Law on Patent, Utility models and
Industrial Designs – Articles 56-64
(i) Technical advance of economic significant in
second patent related to invention claimed in the
first patent.Article 59
(ii) Owner of the first patent shall be entitled to cross-
licence to use invention claimed in the second
patent.Article 60
(iii) Non-assignable use of the first patent excepted
for the assignment being done together with thesecond patent.Article 62
Question 68
Concerning compulsory licenses, Articles 47-55 appear to set forth conditions for compulsory
licensure.  However, condition for the grant of such  a license does not include all of the provisions
set forth in Article 31 of the TRIPS Agreement.  Please clarify how Cambodia's law provides foreach of the provisions of TRIPS Article 31 (a)-(l) when compulsory  licenses are issued.
Answer:
Article 31 – TRIPS
Compulsory LicensingCambodia's Law on Patent, Utility
Models and Industrial Designs,
Articles 47-55
(a) Authorisation on individual merits. Article 47WT/ACC/KHM/20
Page 28
Article 31 – TRIPS
Compulsory LicensingCambodia's Law on Patent, Utility
Models and Industrial Designs,
Articles 47-55
(b) Efforts to obtain authorisation failed, and case of national
emergency or non-commercial use.Article 52.
(c) Limited scope and duration on authorised purpose. Only
authorises for public non-commercial use in the case of semi-conductor.Article 47,49,54.
(d) Non-exclusive use. Article 47 (i).
(e) Non-assignable use. Article 50.
(f) Authorised only for domestic supply. Article 53.
(g) Right to review by competent authority and possible termination
if circumstance ceases to exist.Article 49.
(h) Paid adequate remuneration to the owner. Article 47.
(i) Authorisation subjected to Judicial review or other independent
reviews.Article 55.
(j) Remuneration subjected to Judicial review or other independent
reviews.Article 55.
(k) Taking into account the principle of anti-competitive practices. Article 47(ii) and 52 (iii).
(l) Permission to exploit the second patent which can't be exploited
without infringing the first one.Conditions set forth in
Articles 59, 60, and 62.
(Please see answer of question 67).
Question 69
Concerning utility models – Cambodia's patent utility law does not appear to contain any
provisions for protection of layout-designs as required by Article 35 of TRIPS Agreement.  Pleaseverify that these provisions are or wi ll be provided for in a separate law.
Answer:
Concerning the protection of Layout Designs as re quired by Article 35 of TRIPS agreement, Cambodia
requires technical Assistance in preparing a separate  IP law on the protection of Layout Designs and will
proceed with the drafting as soon as it receives such assistance.
Question 70
Concerning undisclosed information, Cambodia's patent utility law also does not appear to
contain any provisions for protection against undisclosed information (data exclusivity) as
required by Article 39 of TRIPS Agreement.  Please indicate where Cambodia's law provides
protection for undisclosed data as required by Article 39 of TRIPS Agreement.
Answer:   
Please see Article 128 of the Law on Patent, Utility Models and Industrial Designs. Cambodia will also
prepare and adopt a separate law on the protection of undisclosed information. Please see the revised IPR
Action Plan.
Question 71
Regarding enforcement provisions, in the Additional Questions and Replies document (Replies to
Questions 1 and 9), Cambodia indicates that it will fully address the civil procedure requirements
under the TRIPS Agreement in a new Civil Code and Civil Procedure Code, and further that suchWT/ACC/KHM/20
Page 29
draft code is to be submitted to Parliament for review and action in October 2004.  Is this
timeframe still the current one for the Civil Code and Civil Procedure Code?
Answer:
Yes, this timeframe is still current.
Question 72
In response to Question 9 concerning how Camb odia plans to provide for border measures as
required under TRIPS Articles 51-60, Cambodia indicated that a separate Law on Customs would
address these requirements.  What is the status of the proposed Law on Customs, and does it fully
address all TRIPS requirements in this area?
Answer:
Border measures required by TRIPS Articles 51-60 are not included in the draft Customs Law. Rather,
the necessary border measures are included in the Law on Marks, Trade Names and Acts of UnfairCompetition articles 35-47 and the Law on Copyright and Related Rights. The Law on Copyright
includes, by reference, all border measures included in the Law on Marks, Trade Names and Acts of
Unfair Competition. (See Article 63 of the Copyright Law.)
Question 73
TRIPS Article 47 - application to civil court proceedings:  This was raised in the accession
documents as a concern that was not currently addr essed, but that would be in the future.  When
and how will this issue be addressed?
Answer:
Cambodia understands that Article 47 is not a requirement for WTO members.  The issue referred to in
TRIPS Article 47 is addressed in article 42 (second paragraph) of the Law on Marks, Trade Name andActs of Unfair Competition.
Question 74
TRIPS Article 48:  The accession documents indicate that the indemnification of defendant,
including attorneys' fees, will be provided for in  the new Civil Code and/or Civil Procedure Code.
It would appear that there is current language in both the Draft Law on Copyrights (i.e., Arts. 61,
67(3)) and the Trademark Law (i.e., Arts. 27-28) that may address or encompass this concern.
Will provisions be written into the Civil Code and the Civil Procedure Code to comply explicitly
with TRIPS Article 48 in order to avoid any ambiguity?
Answer:
The Codes will not have such detailed provisions. Cambodia believes that the relevant laws adequately
and unambiguously meet the requirements of TRIPS Article 48. The forthcoming IPR legislation that
remains to be drafted will likewise address this issue. Cambodia is making available current  drafts of theCivil Code and Civil Procedures Code.WT/ACC/KHM/20
Page 30
Question 75
TRIPS Article 61:  Responses in the Revised Checklist concerning a number of enforcement
provisions requirements do not cite applicable sections of the Draft Law on Copyright.  Please
explain this lack of reference to draft Law on Copyright provisions.
Answer:
The Checklist has been revised to reflect applicable sections of the Law on Copyright. Please also note
that the Law on Copyright includes by reference the border measures included in the Law on Marks.
Question 76
Regarding the Draft Law on Copyrights Enforcement Provisions and its Articles 58-63, these
appear to meet minimal TRIPS compliance on mo st requirements, although specifics would need
to be fleshed out in more detail in implementing regulations.
Answer:
Please see the answer to Question 75. Cambodia will specify the necessary implementing regulations in
a Sub-Decree that will be drafted soon.
Question 77
As for Articles 64-65, there would appear to be some inconsistency in the ranges of fines and
imprisonment provided for in the case of overlapping protected works (e.g., audiovisual works).Please clarify the apparent inconsistency in the range of potential fines and imprisonment terms
contained in these two provisions.
Answer:
There is no inconsistency, because article 64 addresses only the issue of the infringement of the rights of
authors and article 65 addresses only the abuse of the rights of performer, phonogram producers  andbroadcasting organisations. It seems to be overlapping in the last paragraphs of both articles, but in
article 64 the last paragraph refers to the infringement by displaying/performing or disseminating
without authorization, and in article 65 it merely refe rs to the infringement by means of  broadcasting
without authorization. The implemen ting Sub-Decree will clarify that infringement of broadcasting
rights is to be dealt with only under Article 65.
Question 78
Concerning Article 67, there would appear to  be an attempt at compliance with TRIPS
requirements in granting customs officials provisional enforcement measures at the border subject
to judicial review (the translation might be inaccurate).  Will all customs related TRIPS
requirements be more fully and explicitly addressed in the proposed Law on Customs or in
implementing regulations?
Answer:
Article 63 (not 67) of the Law on Copyrights and Related Right grants customs officials the right to
enforce border measure on pirated goods including suspension of clearance and seizure. Please note that
the more detailed border measures spelled out in the  Law on Marks are included by reference in the Law
on Copyrights.(See Article 63).WT/ACC/KHM/20
Page 31
Question 79
About Article 68, this provision appears to add ress both anti-circumvention and rights data
management issues adequately.
Answer:
Cambodia agrees with this comment.
Question 80
Regarding Trademark Law enforcement provisions, the provisions in Articles 27-28 grant courts
the authority to award damages and any other reme dial measures as provided for in the "general
law"?  Will this authority be more explicitly provided for in the Civil Code and Civil Procedures
Code?
Answer:
The Civil Code and the Civil Procedures Code provide legal authority for awarding damages and other
remedial measures. Cambodia is making available current drafts of the Civil Code and the Civil
Procedures Code.
Question 81
Articles 29-34:  These provisions address and comply with other TRIPS requirements.  Will
implementing regulations or a decree more fully detail these provisions on procedures?
Articles 35-47:  These concern border measures and appear to be TRIPS compliant.
Article 62:  Provides for judicial review of administrative decisions and appears to be in
compliance with TRIPS Article 41.
Articles 63-69: These provisions lay out the various penalties available to be imposed by a court.
They would appear to be adequate and calculated to have a future deterrent effect againstrepeated infringement, at least on a commercial scale.
Answer:
Cambodia agrees with these comments.
Question 82
Regarding Law on Patents enforcement provisions, Article 126 grants the courts authority to
order injunctive relief for infringement, to award damages, and to grant any other remedial
remedy provided for under general law.  Will this authority also be addressed or contained in the
Civil Code and Civil Procedures Code?
Answer:
Yes, this authority will be addressed in the Civil Procedures Code. Cambodia is making available current
drafts of the Civil Code and Civil Procedures Code.WT/ACC/KHM/20
Page 32
Question 83
Articles 129-132 would appear to establish fair and adequate criminal penalties calculated to deter
future infringement; provides for imprisonment, seizure, forfeiture, and destruction of both
infringing goods and equipment used in the commis sion of the infringement.  Will implementing
regulations spell out more explicitly the situations  in which these criminal penalties can/will be
imposed?
Answer:
Yes, the relevant Sub-Decree will contain explicit details regarding implementation.
Question 84
Regarding the Law on the Management of Pharmaceuticals, various provisions of this law could
be potentially used to deal with counterfeit pharmaceutical sale, distribution and importation.
Will intellectual property rights-holders be able to utilize provisions of this law to seekadministrative action against unauthorized/unli censed manufacturers, retailers, and distributors
of counterfeit pharmaceutical products?
Answer:
Yes, right-holders will be able to use the provisi ons contained in this law to protect their own lawful
rights. Article 12 of the Law provides for criminal penalties for knowingly producing, importing,exporting, distributing or selling unregistered narcotic drugs or pharmaceuticals that are counterfeit, of
sub-standard quality or expired thus having an adverse effect on human health. Penalties consist of fines
of Riels 20 million to 50 million, and prison terms of from 5 to 10 years.
Question 85
Regarding the Law on Criminal Procedure, while it does not always use explicit TRIPS language,
it appears to provide clear and adequate crimina l procedures that can be used in intellectual
property prosecutions.  Implementation will be the key.
Answer:
Cambodia agrees with this comment .
_______________WT/ACC/KHM/20
Page 33
General Questions/Comments on Ne xt Steps in the Working Party
In addition to the necessary review of Cambodia 's trade regime, and the negotiation for terms of
Cambodia's WTO membership required by Ar ticle XII of the WTO Agreement, we view
Cambodia's accession process as an opportunity to identify areas where technical assistance can
help build trade capacity and incorporate trade as part of Cambodia's economic developmentprogram.
There was a time when acceding countries trade regimes were not reviewed, and when little was
required of a country to join the internatio nal trading system.  History has shown that
membership on these terms was of li ttle value to the acceding country.
Working with other delegations, we hope to make this accession process a point of departure for
the reforms and assistance that Cambodia needs to make full use of its participation in the WTO.
We are prepared to work with Cambodia to move the accession process forward.
On transitions:
Cambodia has stated that it intends to seek tr ansition periods to implement the Agreements on
Customs Valuation, SPS and TRIPS.
Are these the only areas where Cambodia believes it will need transitions to fully implement WTO
provisions?
Is Cambodia prepared to implement all other WTO provisions from the date of accession, or are
there other areas where additional ti me or flexibility will be needed?
We understand that Cambodia has a legitimate need to make use of some of the flexibilities
available to least developed countries (LDCs) under the WTO agreements or transitions not
otherwise provided for in WTO Agreements.  We are sympathetic, and we expect that Cambodiawill be explicit in its requests for such flexibility and transitions.
For each requested transition or departure from otherwise standard WTO requirements, we
would seek as much specificity as possible as to  the scope and duration of the transition requested.
This will mean that Cambodia should provide more detailed action plans, indicating the precise
areas where a transition is requested, end dates fo r the transitions, and the intermediate steps that
Cambodia's trading partners can use to follow Cambodia's progress in implementing the relevant
agreements.
This will help us secure the technical assistan ce necessary to assist in implementing the
commitment within the period of the transition.
We would request that Cambodia make commitments to consolidate current implementation or
make further progress towards WTO comp liance in some areas immediately.
E.g. in the case of Customs valuation, Cambodia  should not expand the use of minimum prices
beyond the products currently listed in legislation and the prohibited methods of valuation should
not otherwise be used.
E.g., in the case of Intellectual Property Protecti on, TRIPS-consistent measures already in place
should not be subject to transition and Articles  3, 4 and 5 of the TRIPS Agreement, providing for,
inter alia, national treatment and MFN treatment under current legislation in place, should applyWT/ACC/KHM/20
Page 34
from the date of accession.  During the tran sition, Cambodia should not allow manufacturing
facilities to be established that produce goods or works inconsistent with the substantive provisions
of the TRIPS Agreement.
E.g., in the case of SPS, an enquiry point should be established, SPS measures taken should be
notified to the WTO, and Cambodia should be prepared to consult with WTO members uponrequest if measures taken negatively impact their trade.
In those areas where Cambodia is already in compliance with WTO agreements, whether or not
subject to a transition, Cambodia should not take any action that would bring it out of compliance.
As changes are made in its laws, regulations a nd practice during the transition, Cambodia should
ensure that any progress towards WTO conformity is  retained, and that none of the changes result
in a reduction in the degree of consistency with the provisions of WTO agreements.
In general, Cambodia should provide MFN and National Treatment for all existing rules during
any transition periods granted.
Technical Assistance:
We applaud Cambodia's efforts to reform its economy and integrate itself into the world economy,
including through this accession process.  Cambodia  has put itself on what we believe is the only
path to sustainable development for a small econom y - a path of open markets and the rule of law.
There is more hard work to do, and we understand that technical assistance will be required in
several areas.
In this regard, work underway in the Integrated Framework and other technical assistance
opportunities will be extremely relevant.
We are concerned, however, about the numerous a reas in which Cambodia describes its proposed
actions as being contingent on the availability of technical assistance.
It is up to Cambodia to identify the specific assi stance it needs in each case to move towards WTO
compliance, so that technical assistance provider s, both in the Integrated Framework context and
otherwise, can confirm their willingness to provide the necessary support.
Ideally, Cambodia should finalize its WTO commitments only after obtaining commitments for
the necessary technical assistance, so there will be no question of Cambodia's ability to follow
through on its action plans.
We, and other Working Party members, stand ready to address Cambodia's technical assistance
needs and to help make Cambodia's accession a useful tool for economic development.
Answer:
Cambodia appreciates these thoughtful comments and looks forward to exploring them in more detail in
the context of discussion over the draft Report of the Working Party.
_______________WT/ACC/KHM/20
Page 35
ANNEX 1
UPDATED LIST OF STATE-OWNED ENTERPRISES
I. STATE-OWNED ENTERPRISES
Ministry of Agriculture, Forestry and Fisheries
1. Chup Rubber Plantation Company
2. Krek Rubber Plantation Company
3. Memut Rubber Plantation Company
4. Chamkar Andaung Rubber Plantation Company
5. Snuol rubber Plantation Company
6. Pem Chang Rubber plantation Company
7. Boeung Ket Rubber Plantation Company
8. Agricultural Inputs Company
Ministry of Public Works and Transport
1. Sihanouk Ville Port
2. Phnom Penh Port
3. Kampuchea Shipping Agency and Broker (KAMSAB)
4. Construction Laboratory
5. Royal Railway of Cambodia
6. Neak Loeung Ferry
7. Prek Kdam Ferry
Phnom Penh Municipality
1. Phnom Penh Water Supply
Ministry of Industry, Mines and Energy
1. Electricity of Cambodia (EDC)
Ministry of Economy and Finance
1. Rural Development Bank
Ministry of Commerce
1. Green Trade Company
II. JOINT-VENTURE ENTERPRISES (parti cipation of the State in 51 %)
1. Camintel Company
2. Cambodia Pharmaceutical EnterprisesWT/ACC/KHM/20
Page 36
III. ENTITIES TRANSFORMED INTO AUT ONOMOUS STATE-OWNED ENTERPRISES
THAT ARE IN THE PROCESS OF ORGANIZING THEMSELVES FOR OPERATIONS
1. Printing and Distribution Institution
2. National Insurance Company
3. Cambodia-Re Company
4. Public Construction Laboratory Department
__________