G/VAL/W/222  
 
4 March 2013  
(13-1177)  Page: 1/6  
Committee on Customs Valuation  Original: English  
 
 NOTIFICATIONS UNDER ARTICLE 22 OF THE  
CUSTOMS VALUATION AGREEMENT 
CAMBODIA  
RESPONSES FROM CAMBODIA TO THE UNITED STATES 
 The following submission, dated 14 February 2013,  is being circulated at the request of the 
Delegation of the Kingdom of Cambodia. 
 
 
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Question 1 
Question in response to G/VAL/W/209:  We thank Cambodia for its responses to our 
previous questions.  In its response, G/VAL/ W/209, Cambodia stated that it no longer 
applies reference pricing on petroleum produc ts.  Could Cambodia please explain how it 
values "sensitive goods or high risk goods," such as petroleum products, consistent with 
procedures laid out by the WTO Customs Valuation Agreement (CVA)?  
Answer:  
By now, the transaction value is also applied on petroleum product.  The value declared by traders 
is immediately accepted and subject to PCA mechanism. 
Questions on Cambodia's responses to the checklists of issues,  
notified in G/VAL/N/2/KHM/1 
Question 2 Cambodia frequently referred to the Annex of Praka No. 347, which contains the 
WTO Customs Valuation Agreement.  Cert ain provisions, while not specifically 
incorporated into Cambodia's legislation, ar e promulgated in the CVA text contained in 
the Annex.  What, if any, is the legal effect of  provisions such as Articles 6.2, 7.3, and 16 
only appearing the Annex, and not in the Prakas themselves? 
Answer:  
The Annex to the Prakas is the integral pa rt of the existing related regulations. 
Question 3 
Question 1(a)(iii):  Cambodia indicated that Praka 6 provides for Article 1.2(a) of the 
CVA.  The CVA requires that the customs ad ministration communicate its grounds for 
considering that the relationship of the part ies influenced the price to the importer, and 
that this shall be in writing if the import er so requests.  Praka 6 states that "... the 
Customs shall inform the importer of the reas ons, in writing, if so requested and shall 
provide the importer the opportunity to satisf y the Customs that the relationship did not G/VAL/W/222 
 
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  influence the price."  Please clarify wh ether customs will communicate its grounds 
orally, even if the importer does not request an explanation in writing, or if Customs will 
only communicate its grounds if the impo rter wants the reasons in writing.  
Answer:  
This provision does not prevent customs from communicating its grounds orally if importer does 
not request an explanation in writing.  Therefore, it is not inconsistent with the CVA, then this part of the CVA which is in the annex to the Prakas takes effect. 
Question 4 
Question 1(a)(iv):  Interpretive Note 4 to Article 1, paragraph 2, of the CVA states, in 
part, that "Where a test under paragraph 2(b) is met, it is not necessary to examine the 
Question of influence under paragraph 2(a)."  In Cambodia's answer to Question 
1(a)(iv), "How has Article 1.2(b) been implemented?", Cambodia states that 
"[t]transaction value is still applied if  the importer can demonstrate that the 
relationship doesn't influence the price, and that such value closely approximates to one 
of the following occurring at or about the same  time ..."  However, this is not evident in 
Prakas 4 and 5.  Praka 4(c) allows for eith er method of proof, and Praka 5 states that 
the following values will show that the relati onship did not influence the price.  Given 
this apparent inconsistency, we would like clarification from Cambodia regarding their 
interpretation of Prakas 4 and 5 as expressed in the answer to Question 1(a)(iv) of the 
checklist.  
Answer:  
Praka 5 states that “In a sale between related persons , for the purpose of showing that the 
relationship did not influence the transaction value, the importer shall produce evidence that the transaction value of the goods being valued, closely approximates the Customs value of other 
goods exported at the time or substantially at the same time as the goods being valued, being: 
(a)  The transaction value of identical goods or si milar goods in respect of a sale of those goods 
for export to Cambodia between a seller and buyer who are not related at the time of the 
sale;  
(b)  The deductive value of identical or similar goods determined in accordance with Chapter VI 
of this Prakas; or 
(c)  The computed value of identical or similar goods determined in accordance with Chapter VII 
of this Prakas.” 
From the GDCE’s understanding, from the Khmer Language point of view, the above paragraphs 
embeds the meaning that Transaction Value will be  applied if importer can demonstrate that the 
relationship doesn't influence the price, as pointed out in (a), (b), and (c).  And if this is not clear 
enough to prove this meaning, the concerned provision in the CVA which is the Annex to the Prakas will take effect.  Actually, this has already implemented in the current practice.  In this 
regard, however, if any inconsis tency may be found, the GDCE is ready to modify accordingly. 
Question 5 Question 1(b):  We appreciate the informatio n on Article 28 of the Law on Customs, but 
we note that the legislation notified as  G/VAL/N/1/KHM/1 on 12 March 2010, does not 
contain an Article 28.  We therefore kindly request that Cambodia provide the text of 
Article 28 to the Committee.  
Additionally, response to Ques tion 1(b), Cambodia cites to an Explanatory Note from the 
WCO Valuation Compendium, yet does not give context to the citation or state if they 
will be applying Explanatory Note 3.1.  Has Cambodia implemented the works of the 
WCO into its law, or is it considering doing so?   What is the status of a document such as 
the Compendium in Cambodia's law? G/VAL/W/222 
 
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  Answer:  
Cambodia  has strong commitment to the full implementation of the CVA.  In the Cambodia current 
situation, taking into account the size of the economy, international trade volume, and the fact that the CVA has just been implemented for a couple of years, there has not yet been any 
complicated cases that require the additional refere nces such as the works of the WCO.  However, 
so far, the WCO Compendium documents were alre ady translated into Khmer, and the GDCE is 
planning to incorporate into the national legislation.  
Question 6 
Question 5(c):  In its response, Cambod ia cites Praka 31 as implementing the 
prohibitions found in Article 7.2 of the CVA.  Article 7.2(e) of the CVA prohibits valuation 
on the basis of "the price of the goods for ex port to a country other than the country of 
importation[.]"  In Praka 31(e) , Cambodia restates Article 7. 2(e) as "the price of goods 
for export to a country other than Cambod ia, unless the goods were imported into 
Cambodia."  Could Cambodia please explain this provision and to what situations it 
would apply? 
Answer:  
We believe that this is merely a matter of translation.  In fact, the meaning of the current national 
legislation is exactly the same as stated in the agreement “the price of the goods for export to a 
country other than the country of importation.”  In  the current practice, only the price of goods to 
be imported into Cambodia will be used as basis for verifying or identifying risks of declared customs values. 
Question 7 
In its response regarding Article 9.1 of the CVA, Cambodia states that the GDCE 
publishes exchange rates of foreign currencies and the National Bank of Cambodia 
issues the exchange rate of Cambodian currenc y to the U.S. Dollar.  However, Article 23 
of the Customs Law provides that the rate w ill be determined by the National Bank of 
Cambodia, and when the exchange rate is not on the list, Customs may determine the 
rate.  What do Customs use to determine this  rate?  Is this also published, and if so, 
where is it published?  
Answer:  
Currently, the National Bank of Cambodia (NBC ) issued the exchange rates of more than 
20 currencies, covering almost all countries which are trading partners with Cambodia.  The GDCE 
publishes these exchange rates and post them at all customs offices around the country, and also 
in the customs website.  In the rare case that there is any currency other than those issued by the 
NBC, the GDCE will refer that to the website of In ternational Exchange Rate on the date of import 
registration. 
Question 8 
Question 8:  Cambodia's answer regarding their implementation of Article 10 cites to 
specific information that must be kept confid ential under Part IV of the Code of Ethics 
and Conducts of Cambodia Customs Officers.  The list appears to potentially limit the 
scope of confidential information compared to that described in Article 10.  Could 
Cambodia please provide the text of Part IV of the Code of Ethics?  
Answer:  
The following is the text of Section 4 of the Co de of Conduct for Cambodia Customs officials: G/VAL/W/222 
 
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  “Section 4. Professional Se crecy and Confidentiality : 
4.1 Officials must not use secret, confidential, sensitive or commercial information for 
their own personal gain or for any unofficial or unauthorised purpose.  
4.2 Officials are to appreciate that during the course of their duty they may have access 
to a great deal of secret, confidential and commercial information.  This information 
may include customs declarations and support document, report including electronic media, invoices, books and records, accounts and correspondence etc.  Disclosure to 
any unauthorised person will be deemed to be a breach of this Code of Conduct and 
Ethics.  Unauthorized use or release of su ch information may be a breach of the Law 
and dealt with accordingly. 
4.3  Officials must not communicate information concerning departmental matters, 
especially operational matter, intelligence or security issues to any unauthorised 
person except information is published for circulation to the public.  Officials should be aware that even a colleague may not be authorised or “need to know” certain 
information on some occasions. 
4.4 Officials should not remove from the office any official document, except those 
required to carry out their official duties, deface, destroy or otherwise interfere with 
official documents or mail belonging to or destined for other officials, other 
Government institutions or the public. 
4.5 Officials are required to be truthful and accurate when completing all official 
documents and records. This includes all customs documents, personal forms, medical 
records, leave requests, claims and other forms. All documents which require an 
official’s signature must be clearly signed by the official and his or her name printed below and supported by an official date stamp if available. Any document not properly 
signed will be deemed invalid. 
4.6 All documents that should be submitted to the GDCE’s Headquarters, including 
revenue collection data, seizure and intelligence reports etc. must be done by the 
required date.”   
Question 9 Question 9(a):  Cambodia notes that written appeals can be made to the Customs Tariff 
Committee and that the organization and func tion of that Committee will be determined 
by Anukret.  Could Cambodia provide de tails regarding how the Customs Tariff 
Committee is organized and how it  functions?  If not, when does Cambodia anticipate 
that the Anukret will be issued? 
Answer:  
The draft of the Anukret (Sub-Decree) on Tariff Committee was finalized and hopefully come into 
effect in 2013. 
Question 10 
Question 10(a):  We would greatly apprecia te if Cambodia could please provide the 
addresses for the websites where its custom s valuation laws, regulations and judicial 
decisions can be found.  
Answer:  
The Cambodia Customs Website Address:  www.customs.gov.kh. 
S o  f a r ,  t h e r e  i s  n o t  y e t  a n y  j u d i c i a l  d e c i s i o n  is posted on the website, except the Law and 
Regulations. 
Question 11 In reviewing Cambodia's legislation and answer to Question 11, we are concerned about 
the limited implementation of Article 13 of the CVA.  It appears that importers may only 
withdraw their goods if a customs valuation de termination is delayed due to an appeal.  G/VAL/W/222 
 
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  The ability to withdraw goods should also be available with respect to the goods while 
Customs is still making its "re-determination", if this process preven ts the release of the 
goods.  Can Cambodia please clarify whether the right to wi thdraw goods is limited to 
only those situations where the de lay is the result of an appeal? 
Answer:  
No, the right to withdraw goods is not limited to only those situations where the delay is the result 
of an appeal.  Importer can request to withdraw goods at any circumstances with proper security. 
This is evidence in Praka 2 and Praka 3 of the Prakas No. 112 dated 15 February 2008 on Provision 
of Security: 
Praka 2 .- 
The security may be required in the following circumstances: 
- The release of goods from customs control before payment of duty and taxes; 
- The movement of goods within or through the customs territory under the transit regime; - Authorized customs brokers, operators of bonded warehouses, operators of temporary 
storage facilities; 
- Temporary import and export of goods; - Release of goods pending the decision on appe al, release of temporarily seized goods; or 
- Other circumstances as may be required by customs. 
Praka 3.- The security may be in the form of: - Cash or cheque certified by a bank; 
-  B o n d  o r  s e c u r i t y  p r o v i d e d  b y  a n  a p p r o v e d  s u r e t y  i . e .  a  b a n k ,  i n s u r a n c e  c o m p a n y ,  o r  a  
government institution, and other forms of secu rity that are approved by the Director of 
Customs. 
Obviously, in practice, imported goods can be released before payment of duties and taxes, upon 
importer’s request, if proper security is provided. 
Question 12 
We also request that Cambodia please provid e an explanation regard ing Article 18(b) of 
the Customs Law, which provides that "Cus toms may require from any person ... proof, 
by declaration or the production of requir ed documents required by Law and existing 
regulation, of the correctness of the declarat ion, and may refuse to release the goods 
until such evidence is provided."  How does Cambodia view this provision in light of 
Article 13 of the CVA, which requires that im porters be able to withdraw their goods 
pending a final determination? 
Answer:  
We recognized that the Article 18(b) of the Law on Customs may provide the scope of application a 
little different from that of Article 13 of the CVA,  but we believe that the Article 18(b) of the Law 
on Customs does not prevent importer from requ esting to withdraw their goods pending a final 
determination of CV by customs in exchange with proper security.  
Question 13 Question 15:  Please clarify what the st atement that Cambodia will "follow the 
international best practice, such as the De cision 4.1 of the WCO Valuation Compendium 
on the valuation of Carrier Media Bearing Softwa re?"  Does this mean that Cambodia will 
determine the value of such goods base d on the value of the carrier media? G/VAL/W/222 
 
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  Answer:  
Yes, Cambodia will determine the value of such g oods based on the value of the carrier media, as 
stated in the Decision 4.1 of the WCO Compendium  which will be incorporate into the national 
legislation. 
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