WT/TPR/M/364/Add.1  
 
26 February 2018  
(18-1229) Page: 1/78 
Trade Policy Review Body  
21 and 23 November 2017  Original: English/anglais/inglés  
 
  TRADE POLICY REVIEW  
CAMBODIA  
MINUTES OF THE MEETI NG 
Addendum  
Chairperson: H.E. Mr. Juan Carlos Gonzalez (Colombia)  
This document contains the advance written questions and additional questions by WTO 
Members, and replies provided by  Cambodia .1 
 
 
Organe d 'examen des politiques commerciales  
21 et 23 novembre  2017  
EXAMEN DES POLITIQUE S COMMERCIALES  
CAMBODGE  
COMPTE RENDU DE LA R ÉUNION  
Addendum  
Président : S.E. M. Juan Carlos Gonzalez ( Colombie)  
Le présent document contient les questions écrites communiquées à l 'avance par les 
Membres de l 'OMC, leurs questions additionnelles, et les réponses fournies par  Cambodge .1 
 
 
Órgano de Examen de las Políticas Comerciales  
21 y 23 de noviembre  de 2017 
EXAMEN DE LAS POLÍTI CAS COMERCIALES  
CAMBOYA  
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo. Sr. Juan Carlos Gonzalez (Colombia)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito y 
las preguntas adicionales de los Mi embros de la OMC, así como las respuestas facilitadas por  
Camboya .1 
 
 
_______________  
 
                                                
1 In English only/En anglais seulement/En inglés solamente.  WT/TPR/M/364/Add.1  
 
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  CONTENTS  
 
SINGAPORE  ................................ ................................ ................................ ......................  3 
CANADA  ................................ ................................ ................................ ...........................  4 
ARGENTINA  ................................ ................................ ................................ ......................  6 
CHINA  ................................ ................................ ................................ ..............................  8 
UNITED STATES  ................................ ................................ ................................ .............  11 
BRAZIL  ................................ ................................ ................................ ...........................  19 
SEPARATE CUSTOMS TER RITORY OF TAIWAN, PE NGHU, KINMEN AND MAT SU  
(CHINESE TAIPEI)  ................................ ................................ ................................ .........  20 
INDONESIA  ................................ ................................ ................................ ....................  26 
EUROPEAN UNION  ................................ ................................ ................................ .........  30 
JAPAN  ................................ ................................ ................................ ............................  51 
MALAYSIA  ................................ ................................ ................................ ......................  54 
THAILAND  ................................ ................................ ................................ ......................  56 
AUSTRALIA  ................................ ................................ ................................ ....................  62 
REPUBLIC OF KOREA  ................................ ................................ ................................ ...... 67 
FOLLOW -UP QUESTIONS FROM CH INA ................................ ................................ ...........  68 
FOLLOW -UP QUESTION FROM THE  EU ................................ ................................ ............  74 
FOLLOW -UP QUES TIONS BY MALAYSIA  ................................ ................................ .........  75 
 WT/TPR/M/364/Add.1  
 
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  SINGAPORE  
The Secretariat Report  
 
3.1.1 Customs procedures, valuation, and requirements  
Page 38 (Paragraph 3.8)  
 
Q1: Cambodia has successfully implemented the Best Trader Programme (BTP) in 2014. When 
does Cambodia plan to implement the full Authorised Economic Operator (AEO) programme?  
 
Answer:   
Cambodia Customs plans to expand the current BTP to the full AEO programme by 2020.  
 
Q2: We note that BTP member previously benefited from reduced scanning of containers, but the 
authorities stated that this incentive has been removed and currently BTP members are required 
to undergo scanning as normal traders.  
 
a. Could Cambodia explain the r easons for removing reduced container scanning for BTP 
members?  
b. Would reduced scanning be one of the benefits offered to AEO cargoes in future?  
 
Answer:   
a. Best traders enjoy a number of incentives for simplified customs clearance procedure. 
Container Scann ing is the minimum requirement for cargo inspection to ensure 
security and safety. Therefore this treatment is suitable for high compliant traders 
while physical inspection is exempted.  
 
b. No, from the security and safety reason perspective, scanning is cons idered as 
minimum requirement for AEO cargoes inspection.  
 
Q3: When the AEO programme is implemented, would there be any differences in the benefits 
provided to companies under the BTP programme as compared to those under the AEO 
programme?  
 
Answer:   
AEO t raders may enjoy more incentives than BTP.  
 
4.4.5.2 Air Transportation - Pages 110 and 111 (Paragraph 4.121)  
 
Q4: We note that Cambodia passed a law on the 'implementation of the fifth freedom of the air' in 
June 2016. Could Cambodia share details of this  law? 
 
Answer:   
 
In the context of ASEAN Open Skies Policy since 2015, National Assembly adopted the law on the 
rectification to the protocol 2 on the fifth freedom traffic rights between contracting parties as a 
part of Air Transport Agreement between the  governments of the member states of ASEAN and 
the Government of the People's Republic of China.  
 
With this law any airline designated by Cambodia (based on bilateral negotiation) is allowed to 
operate both passenger and cargo scheduled services between its home country and an 
international airport in another country, and then to an international airport of a third country, 
without limitations on capacity and schedule.  
 WT/TPR/M/364/Add.1  
 
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  CANADA  
The Secretariat Report  
 
4. Trade Policies by Sector:  
4.1.3 Border Measures (p age 75)  
 
4.7 During the review period, tariff protection for agriculture increased slightly and remains higher 
than the overall applied MFN average (12.3%, 2017) and the average for manufacturing. In 2017, 
the simple average stood at 16.1% (15.4% in 2011) and 14.6% (14.5% in 2011) at HS and 
WTO-definition levels respectively (Tables 3.1 and A3.1). Thus, there was an average gap of 
13.8 percentage points between average MFN applied and bound rates in agriculture, much higher 
than in manufacturing. To promote  the mechanization of the agricultural sector, zero tariffs apply 
to imports of farm machines and equipment (Section 4.1.4).2  
 
Q1: Canada notes that the applied tariff protection for agriculture products increased slightly since 
its last Trade Policy Review. Can Cambodia provide details on what products tariffs were increased 
and provide the policy rationale for such increases?  
 
Answer:   
There has been no change in tariff policy for agricultural products between 2011 and 2017. The 
slight increase in the simple average tariff rate from 15.4% in 2011 to 16.1% in 2017 is merely 
resulted from the transposition from AHTN2007 to AHTN2012 and from AHTN2012 to AHTN2017. 
Taking into account both transposition processes, the number of tariff lines of agricultur e products 
increase significantly from 1229 lines in 2011 to 1724 lines in 2017.  
 
4.10 page (75 -76) 
 
The export tax on certain agricultural products at rates of 10% (e.g. certain live animals (bovine, 
poultry), fish and molluscs, vegetable materials of a k ind used primarily for plaiting) and 50% 
(e.g. coca leaf, poppy straw, cannabis) remained (Section 3.2.2); the export tax on rubber was 
revised (Section 4.1.5.2).3 Subject to certain criteria, a zero -VAT rate applies to businesses that 
support exporters an d subcontractors by supplying goods and services to agricultural exporters, 
and garment and footwear manufacturers (Section 4.3.4).4 
 
Q2: Canada notes that applies export taxes on certain agriculture products of either 10% or 50% 
and that in certain cases, a zero -VAT is applied to " businesses that support exporters and 
subcontractors by supplying goods and services to agricultural exporters "  
 
 Can Cambodia provide further details on what criteria is required to be met for a 
business to be exempt from VAT?  
 Can Cambodia explain the policy rationale for applying export taxes on certain 
agriculture products as outlined in paragraph 4.10 of the S ecretariat report?  
 
Answer:  
 The zero rating applies for supporting Industry [Qualified Investment Project (QIP)] or 
contractor who directly supplies its products or services to support the export -oriented 
companies of garments, textile, footwear, handbags,  and wallet and hats industries:  
 
 Supporting  industry refers to QIP that directly exports/indirectly supplies its 
products/services to support the exports of garments textile, footwear, handbags, and 
wallet and hats industries.  
 Contractor refers to real re gime taxpayer who directly supplies 80% of its 
products/services to support the exports of textile, footwear, handbags, and wallet and 
hats industries.  
                                                
2 MAFF (2015), Agricultural Mechanisation in Cambodia. Viewed at: http://www.un -
csam.org/ppta/201409RF/KH.pdf .  
3 Coca leaf, poppy straw, and cannabis exports are prohibited . 
4 USTR (2016), 2016 National Trade Estimate Report on Foreign Trade Barriers. Viewed at: 
https://ustr.gov/sites/default/files/2016 -NTE-Report -FINAL.pdf . WT/TPR/M/364/Add.1  
 
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   Input tax o n imports of production inputs and production equipment for producing to 
support directly to the above industries are state charge (Prakas 311 dated 
19 March  2014) . 
 
 According to the Sub -decree No. 114 dated 24 December 1999 on Value Added Tax, 
Chapter  15 "the zero -rating of the Export of Goods and Services", Article 54 "the tax shall be 
imposed at the rate of 0 % on the taxable value of each taxable supply of goods exported 
from the Kingdom of Cambodia and of the taxable supply of a service rendered outside the 
Kingdom of Cambodia."  
 
There is no export tax on poultry (both lives and its product).  The Secretariat Report should be 
revised accordingly. Cambodia applies export tax of 10% on bovine in order to reduce export and 
to support adequate supplies of animal powers for domestic traditional farming. As for the export 
tax of 10% on aquatic animal s, the imposition of export tax is for the purpose of preserving 
natural resource and encouraging the processing of such products in the country. High tax rate 
(50%) on export of coca leaf, poppy straw, cannabis is to discourage the exportation of such 
products. However, Cambodia is considering the possibility to reduce the export tax.  
 WT/TPR/M/364/Add.1  
 
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  ARGENTINA  
The Secretariat Report  
 
In paragraph 3.9, the authorities state that they plan to increase the number of members in the 
Best Trader Programme (BTP) and fully imp lement the Authorized Economic Operator Programme 
in accordance with the Customs Strategy and Work Programme on Reforms (2014 -2018).  
 
Q1: What actions do the authorities intend on taking to increase the number of participants in the 
BTP and fully implement  the Customs Strategy and Work Programme on Reforms?  
 
Answer:  
Actions to be taken to increase the number of best traders:  
 
  Modify selectivity criteria package, incentives package and monitoring mechanisms to be in 
line with international standard  
  Enhance  awareness programmes for private sectors and more in -depth training to customs 
officer  
  Encourage more engagement from the private sector .  
 
Actions to be taken to fully implement AEO programme:  
 
  Seek technical assistance to strengthen capacity of Best Trader Management Unit  
  Expand best traders in terms of both quantity and types of business  
  Develop transition procedures to integrate BTIM to AEO including the introduction audit 
based criteria and the full implementation of the PCA monitoring mechanism  (to be verified 
with DGCE)  
  Develop preliminary selectivity criteria package for AEO  
  Assess the possibility of incorporating BTIM into AEO  
  Launch a pilot programme implementing AEO  
  Evaluate the results of the pilot programme based on international sta ndards.  
 
Q2: What requirements do foreign enterprises need to meet in order to qualify for these 
programmes?  
 
Answer:  
Traders, Cambodian or foreign, who wish to be a member of Best Trader Group must submit an 
application to the GDCE in accompany with the f ollowing documents:  
  Business Registration Certificate and Company's by law with the list of shareholders at the 
time submitting the application  
  Financial statements for the last two years  
  Letter to certify compliance issued by  concerned business commun ities 
  Copies of ID card or similar documents of Company's leaders.  
 
Paragraph 3.24 explains that the applied MFN rate exceeded the bound rate totally for 60 lines, 
partially for 29 lines and possibly for 14 lines in 2017 (Table A3.2). The products affecte d include, 
inter alia: machinery and parts, fireworks, live animals, gasoline and diesel. The authorities stated 
that the reason for the breaches was change in nomenclature, and that these would be rectified.  
 
Q3: Could you specify when exactly you are int ending to rectify the values mentioned?  
 
Answer:  
Customs is in the process of rectifying this issue and is expected to finish in 2018.  
 
Paragraph 3.26 states that in addition to the customs duties, imports are also subject to a VAT, 
which is applied at a flat rate of 10%. A special tax (excise tax) is levied on certain imports, the 
applicable rates are 0%, 4.35%, 5%, 10%, 15%, 20%, 25%, 30%, 45% and 50%. A tax 
of US$0.02/litre is levied on gasoline imports and a tax of US$0.04/litre is levied on diesel imp orts. 
 
Q4: What goods are subject to an excise tax?  
 WT/TPR/M/364/Add.1  
 
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  Answer:  
Excise tax is imposed on products (as of November 2017) in table below:  
 
No. Type of Goods  
1 Beverage  
2 Beer 
3 All types of alcoholic drinks  
4 Cigarettes  
5 Cigars  
6 Petroleum products  
7 Cosmetic products  
8 Perfume  
9 Plastic products and rubber  
10 Tires 
11 Glass  
12 Air conditioners and electrical appliances (including camera)  
13 Motorcycles and its spare parts  
14 Vehicles  
15 Auto spare parts  
16 Trailer, semi -trailer  
17 Inflatable yachts and other vessels for pleasure or sports, motorboats  
18 Articles for Christmas and Carnival, travelling circuses and travelling menageries  
19 Playing card, mahjong tiles and other gambling equipment  
20 Guns and swords  
 
Paragraph 3.42 of the report explains that qualified investment projects (QIPs) are entitled to have 
certain customs duties and taxes exempted. The coverage of the exemption depends on the 
category of the QIP. Domestic QIPs are those that do not endeavour to export; in s uch cases, 
import duties on production equipment and construction material are exempt. However, if any 
goods produced by the domestic QIP are exported directly or indirectly, the customs duties levied 
on the inputs used in the production of such goods are refunded after a quarterly review.  
 
Q5: From which customs duties and taxes may QIPs be exempted?  
 
Answer:  
Tax incentives for Qualified Investment Projects (QIPs) provided under the Law on Investment 
2005 are as follows:  
-  Exemption period: Trigger period +  3 years tax holiday + Priority Period (from 1 to 
3 years) or select 40% of special depreciation.  
-  Exemption of Minimum Tax (1% of annual turnover).  
-  Exemption of Import and Export duty.  
 WT/TPR/M/364/Add.1  
 
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  CHINA  
Part I. Questions based on the Secretariat Report  
 
Summary,  Para 10  
"Cambodia remains largely open to and encourages foreign direct investment (FDI) despite the 
prohibition of foreign ownership of land and involvement in some activities for health or 
environmental purposes, as well as local equity or workforce par ticipation requirements, or prior 
authorization for certain activities (e.g. certain telecommunications services, radio and television 
broadcasting, and certain tourism services). In other activities, it continues to ensure national 
treatment and 100% fore ign ownership, except for divested state enterprises; emphasis was put 
on public -private partnerships as from 2016. A 2012 moratorium on Economic Land Concessions 
(ELCs) allowing long -term leases of state -owned land was reviewed reducing their term and 
cancelling some of them. During the review period, Cambodia signed three new bilateral 
investment promotion and protection agreements and its first double taxation agreements.  
 
Q1: We noted that Cambodia made no commitment in express service sector under its accession 
protocol. Does Cambodia allow foreign investment to provide express service in the form of 
commercial presence? If not, is there any plan to open express service sector to foreign business?  
 
Answer:   
Yes. Cambodia allows foreign investment to provide international express mail service in 
Cambodia. Currently, there are 33 foreign companies providing the international express mail 
services.  
 
Q2: If yes, what is the scope of express service sector which is open to foreign business? Is there 
any requirement on local equity or workforce participation? Does the foreign investment need prior 
authorization?  
 
Answer:   
According to the postal law of Ca mbodia and Inter Ministries PRAKAS between Ministry of Economy 
and Finance, and Ministry of Posts and Telecommunications on the licensing of international 
express mail services, an express mail service is defined as a modern postal service established 
with an international system. This kind of service guarantees the safety and quick delivery and 
distribution of items. All items are recorded using information technology, and items sent by this 
service are given the highest priority.  
Ministry of Posts and Tel ecommunications is the issuer of a license for international express mail 
services. A natural or legal person who wish to apply for the international express mail license 
shall meet the following requirements:  
 
 Maybe a Cambodia or foreign national  
 Must ha ve enough experience in posts and/or international express mail services  
 Must have his or her business registration with Ministry of Commerce,  
 Must have appropriate business location and must have support documents about the 
location.  
The maximum weight o f parcel allowed in this service is 50 kg. The licensee shall not be allowed to 
lease, sell, or pawn his or her license to other person. Abandoning or transferring a license to 
another shall not be done unless there is a new authorization from the Ministry  of Posts and 
Telecommunications.  
 
There is no requirement on local equity. The number of foreign workers or employees is allowed 
only up to 10% of the total number of Cambodian workers or employees in a company. However, 
the number of unskilled foreign wo rkers is limited to 1% of the total number of Cambodian 
workers or employees in a company. PRAKAS No. 196 on the use of foreign workers or employees 
- MoLVT).  
 
Q3: What are the laws and regulations on express service sector?  
 WT/TPR/M/364/Add.1  
 
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  Answer:   
 Postal Law (2002)  
 Inter Ministries PRAKAS between Ministry of Economy and Finance, and Ministry of Posts 
and Telecommunications on the licensing of international express mail services (2006)  
 Inter Ministry PRAKAS  on the amendment of article 11 (license fees) of the Inter Ministry 
PRAKAS between Ministry of Economy and Finance, and Ministry of Posts and 
Telecommunications on the licensing of international express mail services (2006)  
 PRAKAS on Prohibited Item (MPTC  2017)  
 PRAKAS on Renew Postal Code (MPTC 2017)  
 
Page 78, Para 4.17  
 
"According to the authorities, the 2010 Policy on Paddy Rice Production and Rice Export has played 
an important role in the development of a vigorous milled rice export sector which did not exist a 
few years ago. Nevertheless, they consider that it needs a  thorough review and stock -taking to 
determine which bottlenecks may remain in the value chain, what else must be done to eliminate 
those bottlenecks, and how best to fine tune the key directions of the policy based on lessons 
learned by rice millers and e xporters in foreign markets. In 2014, the MoC assisted in establishing 
the Cambodian Rice Federation (CRF) as a catalyst for government policy implementation and a 
prime information hub for investors, public institutions, policy makers, and development par tners. 
Since 2011, tax incentives have been provided for rice farming, paddy rice purchase and the 
export of milled rice (Section 3.3.1). Through Enhanced Integrated Framework EIF -Tier 2 funding 
combined with EU -funding, 13 large rice millers acquired GMP -HACCP certification, and another 
five to seven large millers will be able to achieve their certification in the near future. "  
 
Q4: "Since 2011, tax incentives have been provided for rice farming, paddy rice purchase and the 
export of milled rice." Please provide the specific content of the tax incentives mentioned below.  
 
Answer:   
i. Export of rice subject to export tax rate of 0%  
ii. There is no customs processing fee for export of rice  
iii. The scanning fee of exported rice container is equivalent to half of other 
imported/exported goods  
Other incentives:  
i. Duty and tax exemption on import of agricultural machinery, fertilizer, seeds, and 
other raw material for fed -mill and farming  
ii. Simplified customs clearance procedure for import of agricultural machinery, 
fertilize r, seeds, and other raw material for farming  
iii. Simplified customs clearance procedure for export of rice.  
1.2.  With reference to the Prakas No. 779 MEF PrK on Additional Tax Incentives for Rice Farming, 
Paddy Rice Purchases, and Production of Rice for Export,  
Article 1 : In accordance with the policy on the promotion of paddy rice production and milled rice 
export of the royal government of Cambodia, the Ministry of Economy and Finance sets out 
additional incentive mechanisms for Rice Farming, Paddy Rice Purchases,  and Production of Rice 
for Export as follows:  
 
 Value Added Tax  
 Domestic supply of paddy is subject to value added tax at 0% (zero percent)  
 Domestic supply of rice is subject to value added tax at 10% (ten percent)  
 Export of rice is subject to value added tax at 0% (zero percent)  
 VAT input related to rice farming, paddy rice purchases, and production of rice for export 
is allowed as credit or refund.  
 WT/TPR/M/364/Add.1  
 
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   Tax on Profit and Minimum Tax  
 
Rice farming, paddy rice purchases, and production of rice for export Entrep rises are entitled to 
incentives as follows:  
 Exemption  on minimum tax on turnover 1%  
 Maximum tax holiday period that includes: trigger period + 3 years tax holiday + 3 years 
priority period.  
 Trigger period: commencing on the issuance of the Final Registrat ion Certificate and 
ending on the last day of the taxation year immediately preceding the earlier of:  
* If the enterprise derives a profit, the taxation year that the profit is first derived; and  
* If the enterprise derives income, the third taxation yea r after the taxation year in 
which the income is first derived.  
 3 years tax holiday: Commencing immediately on the taxation year after the trigger 
period and two following years.  
 3 years priority period: Commencing immediately after the 3rd taxation year of the 3 
years tax holiday.  
 During this tax holiday period enterprise is not subject to monthly prepayment of profit 
tax 1% on turnover.  
 
In order to be entitled to incentives on value added tax, tax on profit and minimum tax as stated 
above Rice farming, paddy rice purchases, and production of rice for export Entreprises shall 
register at the General Department of Taxation.  
 
With reference to the Prakas No. 313 MEF PK on the implementation for the contractors who 
supply rices for rice exporting , 
Article 5:  Request for exemption on value added tax.  
Contractors shall make a request to the Geneal Department of Taxation of the Ministry of Economy 
and Finance according to the formart that is determined in order to be entitled to tax exemption as 
stated in the article 4 of this Prakas for each period of t ime not exceeding one year.  
Article 6:  Obligation of the contractors  
 Shall submit monthly report on quantity and stock of raw materials and goods based on 
the sample attached herewith the Prakas to the General Department of Customs and 
Excise.  
 Shall attac h the copy of contracts on the supply of rice or rice production service with the 
rice exporters and the annual tax return to the General Department of Taxation on the 
month following the month in which the contract was made and shall attach the copy of 
customs declaration for rice export of the rice export industry.  
 Shall issue tax invoice to the rice exporter in every time of rice supply or production that 
is subject to value added tax at 0%.  
 WT/TPR/M/364/Add.1  
 
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  UNITED STATES  
Government Report  
 
Page 7, paragraph 4.17:   
 
Q1: Are there any statistics that can be provided as to the number of patent applications that have 
been (a) filed and (b) granted for each of the EU, Japan and Singapore Programs?  
 
Answer:  
Yes. 
 
Statistics of patent application and granted (EU, JP,SG)  
Description  Received applications  Granted  
EU (Validation)  None None 
Japan (CPG)  11 10 
Singapore (RRP)  25 16 
 
Q2: Are there English versions of the Prakas for each of the EU, Japan and Singapore programs?  
 
Do the respective Prakas  have the force of law? For example, the Singapore program indicates 
that a reregistered patent cannot be enforced against a person who had been previously using the 
invention in Cambodia. Is that based on the Praka or is there a corresponding section of t he 
Cambodian law that is relied on for this aspect of the program?  
 
Answer:  
These Prakas are not yet translated into English. These Prakas can be applied under the 
framework of cooperation between the parties.  
The Prakas  have the force of law as envisaged in the Article 38.new, para.2, according to the 
PRAKAS No: 182/MIH 2016 dated 25 July 2016.  
 
Page 12, paragraph 4.51:   
 
Q3: The report states: "The Law on Trade Unions, promulgated in 2016, provides a more detailed 
legal framework for the operation of trade unions, clarifying the rights and responsibilities of 
workers' and employers' organizations." However, in the International Labor Organization's Direct 
Contacts Mission Report, the Organization noted the Government of Cambodia's acknowledgment 
that the Law on Trade Unions has created confusion in relation to the trade union registration 
process and the need to issue instructions and training in this regard. What measures has the 
Government taken or envisaged to ensure t hat trade unions and administrative officials have a 
clear understanding of the new system of registration?  
 
Answer:  
Since the promulgation of the Law on Trade Union, several trainings and dissemination workshops 
have been conducted to offer a clear unders tanding of the said law, which includes the union 
registration, to relevant officials, workers, employers, and their organisations.  
 
In addition, to address to the concerns pertaining to the registration, the Ministry of Labour and 
Vocational Training, as mentioned in its Press Release of 16 October 2017, will organise a national 
workshop to review the union registration procedure with a view to enable a better understanding 
on the registration issues raised by trade unions and administrative officials. The  outcome of this 
workshop will serve as salient inputs to make the registration procedure more transparent and 
effective, and to ensure the exercise of the right and freedom of the professional organisation in 
Cambodia.  WT/TPR/M/364/Add.1  
 
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The Secretariat Report  
 
Page 22, pa ragraph 2.1:   
 
Q4: Cambodia ratified the WTO Trade Facilitation Agreement on 12 February 2016, and submitted 
notifications for indicative dates for Category B and C provisions on 31 August 2017. We commend 
Cambodia for submitting a comprehensive picture of its capacity building and technical assistance 
needs for Category C. Can you provide any updates on the status of donor arrangements or 
ongoing donor discussions underway to address  these needs?  
 
Answer:  
Cambodia is in the process of identifying specific Capacity Building and also arranging donor 
consultation for the implementation of the Category C of TFA. In particular, the General 
Department of Customs and Excise of Cambodia has been seeking TA from some donors but has 
not yet received any confirmation from them.  
 
Page 40, Paragraph 3.15:   
 
Q5: The Secretariat report states that Cambodia has not submitted a notification that it does not 
apply non -preferential rules of origin. When  does Cambodia intend to submit its notification?  
 
Answer:  
Cambodia will in the immediate future notify the Committee on Rules of Origin that it has no non -
preferential rules of origin, judicial decisions or administrative rulings of general application 
relating to non -preferential rules of origin. A draft regulation on non -preferential rules of origin is 
currently under review by the concerned ministries.  
 
Page 40, Paragraph 3.15:   
 
Q6: The Secretariat report states that as of the last review, Cambodia wa s working on a draft 
regulation on rules of origin. What is the status of that draft regulation?  
 
Answer:  
A draft regulation on non -preferential rules of origin is currently under review by the concerned 
ministries.  
 
Page 43, Paragraph 3.24:   
 
Q7: The Secretariat report states that Cambodia exceeded its bound tariffs "totally for 60 lines, 
partially for 29 lines and possibly for 14 lines in 2017," but that the problem would be corrected. 
What is the status of the corrections?  
 
Answer:  
Customs is in the process of rectifying this issue and is expected to finish in 2018.  
 
Page 48, Paragraph 3.42 - 3.45; Page 52, Paragraph 3.59; Page 53 -54, Paragraph 3.63 
and Table 3.11; Page 54 -55, Paragraph 3.68 :   
 
Q8: According to the Secretariat repo rt, qualified investment projects (QIPs) and Special Economic 
Zones, are entitled to certain incentives. Does Cambodia plan to notify these programs as 
subsidies consistent with SCM Agreement Articles 25? Could Cambodia indicate a schedule for 
submitting s uch notifications?  
 
Answer:  
Cambodia believes that none of its investment incentives are specific , within the meaning of 
Article  2 of the Agreement on Subsidies and Countervailing Measures, and that notification of 
these incentives is consequently not requ ired. 
 
Page 55 -56, Paragraph 3.74:  
Cambodia mainly uses the ISO/IEC Guide 21 -1 and 21 -2:2005 as a national guide to adopt 
international standards as national standards or technical regulations. Presently there are WT/TPR/M/364/Add.1  
 
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  804 Cambodian standards, mainly on foods, electrical appliances, and test methods, of which 151 
are adopted as technical regulations. Nearly 83% of Cambodian standards are aligned with 
international standards.  
 
Q9: Since Cambodia has drafted 804 standards, how does the Institute of Standards of Cambodia 
(ISC) and the National Standards Council (NSC) determine whether to notify to the WTO TBT 
Committee a technical regulation or standard to fulfill its transparency/no tifications requirements 
(WTO TBT Articles 2.9, 3, and 5.6)?  
 
Answer:  
Our understanding is that the notifications to the WTO TBT committee of regulations or standards 
are not compulsory when the national regulations and standards are based on internationa l 
standards and do not have a significant effect on trade of other Members.  
 
Cambodia is making every effort to make the TBT notification requirements. We are aware that we 
are not yet doing in full compliance with the TBT Agreement. We wish to continue ou r efforts to 
eventually be able to make notifications to comply fully with the Agreement. We ask for Members' 
understanding of our efforts and we greatly appreciate some technical assistance to expedite the 
process.  
 
We have so far notified a few notifica tions to the TBT Committee, and we will continue to do so to 
comply with the requirements.  
 
[Cambodia follows international principle for developing and adopting standards.  
Most of Cambodian standards are aligned with international standards like ISO, IEC and Codex 
standards as identical.  
 
Some of them, approximately, 52 standards are local/national standards. Most of these are 
voluntary standards and focused on national products and code of good practices and guidelines. 
In the event when local/nationa l standard need to be developed, like the technical content and/or 
specific requirement for health and environmental protection, we always source for the referral 
data from various international standards which may fit to our purpose as well.  
 
During draf ting and standard developing process, we have always informed our stakeholders 
through website, media and other news channel. However, we recognized that our website and 
media are very limited in coverage due to the technical and incomplete infrastructure.   
 
Based on our understanding, the notifications for the WTO TBT committee over the adopted 
regulations or standards are not compulsory when the national standards which were adopted are 
identical with international standards.  
 
We considered that the notif ications on adopted standards for sending to WTO TBT committee shall 
be those national standards which are adopted as technical regulation and are not aligned with or 
not equivalent to the international standards or the international standards for those pr oducts not 
exist.  
 
Such kind of issue may also arise from the misunderstanding on the conditions, processes and 
mechanisms for notifying standards or technical regulations to the WTO TBT committee. Based on 
this point of view, we would like to look for te chnical assistances to improve the country capacity 
on the matter.]  
 
Page 56, Paragraph 3.75:   
 
Cambodia notes that if a stakeholder determines the need for a particular standard, they must 
submit a request to the ISC , which in turn creates a new work item proposal (NWP), which is 
submitted to the NSC for formal approval.  
 
Q10:  Can foreign stakeholders participate in the development of standards in the NWP's technical 
committee or working group formed?  
 WT/TPR/M/364/Add.1  
 
- 14 - 
 
  Answer:  
The d iscussion language during technical committee meeting is local (Khmer) language. In case of 
foreign stakeholders has its own businesses in the country or has its own local representatives, we 
can accept his or her participation in the technical committee m eeting if the subject of standards 
or discussions is related to his/her business. For foreign stakeholders who have businesses outside 
the country, they are not allowed to participate, but she/he could offer comments or 
recommendations to the drafted stand ards during public comment period.  
 
Q11:  Since a draft Cambodian Standard is circulated for public comment for a 60 -day public 
comment period, what are the factors considered to determine whether to notify the draft to the 
WTO TBT Committee to meet the not ification/transparency commitments (WTO TBT Articles 2.9, 3, 
and 5.6)?  
 
Answer:   
Cambodia has not yet notified drafts but will attempt to do so in the future.  
 
Page 59 -60, paragraph 3.91 -3.93:   
 
The Secretariat states, "Weaknesses identified included probl ems in the definition of 
responsibilities between the various agencies, overall fragmentation of responsibilities between, 
and even within, ministries as well as limited capacity to discharge those responsibilities; lack of 
systematic inspection or monitor ing in all key areas of production and processing, with an impact 
on product quality and safety; an absence of systematic laboratory testing to support inspection, 
due to limited human and financial resources; and a certification system that is not backed by 
testing, and therefore not necessarily accepted in export markets."  
 
Q12:  Please explain why Cambodia focuses on developing capacity for the detection of genetically 
engineered plant products to address trade issues rather than focusing on transparent science for 
the development, introduction, and trade of products derived from biotechnology.  
 
Answer:  
Cambodia's Key regulations and policy governing the field of biotechnology are (i) the Law on 
Biosafety; (ii) Law on Seed Management and Plant Breeders' Rights; and (iii) National Seed Policy.  
 
Despite the presence of these regulations, Cambodia's capacity to apply the technology at present 
is limited. With such technical limitation, to effectively administer sound management procedures 
for the GMO product s, given their possible potential hazards to environment, biodiversity, and 
most importantly human health, is a challenge for Cambodia.  
 
Adopting precautionary approaches through building capacity to detect the presence of GMO plant 
products is strategically important for Cambodia.  
 
Page 62, paragraph 3.104 : 
 
As explained in the Secretariat report, Cambodia has never notified any state trading enterprises 
to the WTO as defined under Article XVII of the GATT.  
 
However, Cambodia's Green Trade Comp any (GTC), established in 1998 by sub -decree # 72 of 
23 November 1998, is considered a state -owned enterprise under the technical supervision of the 
Ministry of Commerce (MoC) and under the financial supervision of the Ministry of Economic and 
Finance. GTC  is in charge of managing Cambodia's national reserve of rice through purchases and 
sales made at market prices but it is also involved in trading other foodstuff or commodities. 
According to the authorities, between 2011 and 2016, GTC exported more than 2 .2 million metric 
tonnes of rice. According to GTC's website, the state ensures loans to GTC with the approval of the 
Minister of Economics and Finance.  
 
Q13:  Please explain whether Cambodia considers GTC a state trading enterprise (STE) covered by 
the Art icle XVII: 4(a) of the GATT 1994 and/or as an agricultural exporting STE by the Nairobi 
Decision on Export Competition.  
 
a.  If so, please provide an updated STE notification to the Working Party on State Trading 
Enterprises and/or a response to all ECQ quest ions for agricultural exporting STE in 2016.  WT/TPR/M/364/Add.1  
 
- 15 - 
 
  b.  If not, please explain the reason these measures are not covered.  
 
Answer:  
Currently, the Green Trade Company is operating on a purely commercial basis and competing on 
an equal footing with private enterprises , does not benefit from any privileges conferred by the 
Government, and therefore is not a state trading enterprise within the meaning of paragraph 1 of 
the WTO Understanding on Article XVII. Green Trade Company operates under guidance from the 
Ministry of  Commerce, a member of Cambodia Food Reserve System, as regards operations 
related to the national rice stock for natural disasters and emergency release of rice stock reserve.  
 
Page 63, Paragraph 3.108:   
 
Q15:  Cambodia is neither an observer to, nor a member of, the WTO's Agreement on Government 
Procurement (GPA). Given that observership provides opportunities to engage with GPA Members 
on government procurement issues more broadly without taking any obligation s, has Cambodia 
considered requesting to become an observer to the GPA?  
 
Answer:  
Recently Cambodia hasn't planned to be a member of GPA yet because of the following reasons 
(1) Cambodia is now implementing the Public Financial Management Reform Program whi ch the 
procurement is included; we are focusing on reforming procurement legal framework such as sub 
degree, prakas and etc, (2) We are now focusing on capacity building of procurement officials, and 
(3) We are strengthening the implementation of public pr ocurement. However, Cambodia is 
considering being an observer in order to earn the opportunity to engage with GPA member and to 
gain more experience in public procurement from the other countries.  
 
Page 65, Paragraph 3.119:   
 
Q16:  The Secretariat notes that bidders may protest decisions at each stage of procurement to 
the Ministry of Economy and Finance (MEF). What is the process for filing a protest or complaint? 
Are the decisions by the MEF binding? What are some examples of deci sions the MEF can make 
(e.g. ordering that the procurement be re -tendered)?  
 
Answer:  
Based on the existing regulation, the process of filing complaint or dispute in procurement is that 
the complainant has right to file the complaint in writing to procurement entities in any stage of 
procurement process. The procurement entity has authority to examine and to solve the 
complaints in 15 working days. If a complainant isn't satisfied with the decision of the procurement 
entity, he or she can lodge a co mplaint to Ministry of Economy and Finance (MEF) for another 
consideration and solution. MEF shall examine and solve the problem within 15 working days. The 
MEF decision is considered as the final decision. However, if the complainant is still not satisfie d 
with the decision, he or she can appeal to the Prime Minister and/or can take a matter to court of 
Cambodia.  
 
Currently, a draft of sub degree on method and procedure for procurement conflict resolution has 
been prepared and being discussed by General De partment of Public Procurement, MEF. The detail 
of filing the complaint procedure and solution has been defined in this sub degree. This sub degree 
is expected to be finalized before the end of 2018.  
 
Page 66 -67, Paragraph 3.123:   
 
Q17:  The Secretariat not es that the Cambodian authorities have stated that the applications for 
membership to treaties and conventions such as the WIPO Copyright Treaty (WCT), WIPO 
Performances and Phonograms Treaty (WPPT), and the Berne Convention for the Protection of 
Literary and Artistic Works related to Copyrights and Related Rights were dependent on the 
availability and timing of technical assistance, and that Cambodia has been receiving such 
technical assistance from WIPO. What kind of technical assistance has WIPO provided  to date 
regarding these copyright treaties? What is the current timeline to ratify these three treaties? 
Upon ratification, will these treaties be self -executing under Cambodian law?  
 WT/TPR/M/364/Add.1  
 
- 16 - 
 
  Answer : 
1.  WIPO has provided Cambodia technical assistance in the areas o f translations and 
publication of legal documents, and capacity building workshops regarding the copyrights 
treaties.  
2.  Cambodia is willing to accede to the international treaties. However, Cambodia will use the 
transitional period given to LDCs by TRIPS C ouncil to build institutional capacity, human 
resources, and preparation of technical regulations.  
3.  The provisions of any international treaties in respect of Law on Copyright and Related 
Rights, to which the Kingdom of Cambodia is a party, shall apply to  matters dealt with by 
Cambodia Copyright Law. In case of conflict with the provisions of this Law, the provisions 
of those already -ratified international treaties shall prevail.  
 
Page 69, Paragraph 3.133:  
 
Q18:  The report notes that GIs may not be protect ed under certain circumstances. Will Cambodia 
refuse registration or allow a challenge of a GI on the basis of a prior protected trademark?  
 
Answer:  
Cambodia may or may not refuse GI registration or allow a challenge of a GI on the basis of a 
prior protected trademark.  
 
Page 70, Paragraph 3.140:   
 
Q19:  The Secretariat notes that Cambodia extends copyright protection to "works to which 
Cambodia is obliged to grant protection under international treaties" (Article 3, Copyright Law). 
Please confirm that TRIPS constitutes a point of attachment under the Cam bodian Copyright Law.  
 
Answer:  
Cambodia does not consider TRIPS to be an international treaty in the meaning of Article 67 of 
Cambodia Copyright Law.  
 
Page 70, Paragraph 3.141:   
 
The Secretariat notes that "[t]he law also addresses limitations on the owner 's rights, under which 
importation or reproduction in a single copy for personal use, use for the purpose of education that 
is not for financial gain, and analysis, short quotations, and citations are permitted."  We would 
like to know more about the scope  of the exceptions found in Articles 25 and 29 of the Copyright 
Law. We note that, while Article 24 incorporates the three -step test by excluding uses "in cases 
where reproduction would conflict with a normal exploitation of the work or would otherwise 
unreasonably prejudice the legitimate interests of the author or the right -holder," Articles 25 and 
29 do not contain such an exclusion.  
 
Q20:  Please explain the rationale for the difference in approach, and whether the lack of such 
language in Articles 25 a nd 29 affects the proper interpretation of the scope of these limitations on 
the owner's rights.    
 
Answer:  
We understand that Art. 25 and 29 are consistent with the three step tests of the TRIPS. These 
Articles allow non -profit, personal and public libra ry uses. These uses will not be seriously affected 
normal exploitation of the work or otherwise unreasonably prejudice the legitimate interests of the 
author or the right -holder.  
 
Page 70, Paragraph 3.142:   
 
Q21:  The Secretariat notes that as of May 2017, 339 copyright works have been registered. Do 
any benefits accrue to authors who choose voluntarily to register their copyrights, compared to 
those who do not? If so, what is the nature of such benefits?  
 
Answer:  
Benefits which accrue to authors who choose  voluntary registration of copyright works:  
(1) registration provides best evidence of ownership ,  
(2) registration will reduce time required in case of any litigation in court,  WT/TPR/M/364/Add.1  
 
- 17 - 
 
  (3) registration facilitates legitimate exploitation, and  
(4) registration provides the date of the works disclosure.  
 
Page 71, Paragraph 3.146:   
 
Q22:  The Secretariat notes that the Copyright Law allows for the establishment of collective 
management organizations (CMOs ) to protect and manage authors' economic rights. Please 
provide information on how many CMOs have been authorized under the Copyright Law and are 
currently operating in Cambodia. The report seems to mention one CMO that was authorized in 
July 2016; please  provide more information.  
 
Answer:  
The report described the Ministerial declaration concerning CMO that was adopted by the Ministry 
of Culture and Fine Arts. As of now, no CMOs have been established.  
 
Page 71, Paragraph 3.150:   
 
Q23:  The Secretariat note s that the Ministry of Culture and Fine Arts may engage in random 
checks of retailers where it will seize counterfeit copyrighted works "only when the right holder has 
recorded his/her copyright with the Ministry." We imagine this is intended to be a refer ence to 
infringing (or pirated) copyright works (as "counterfeit" implies a trademark violation). Is that 
correct?  We would like more information on this process.  
 
Answer:  
The statement is correct. This is a provisional procedure and border measure (Arti cle 63 of Law on 
Copyright and Relate Rights as referred to Article 35 to 47 of the Law on Marks Trade Names and 
Acts of Unfair Competition). MCFA may engage in random check to retailers of registered works 
and automatic protected works, where it will seiz e pirated copyright works.  
 
Q24:  Please confirm whether the Ministry of Culture and Fine Arts actions are administrative (not 
criminal) in nature. Please provide more information about the requirements for rights holders to 
take advantage of such actions. Is recordation of the copyright with the Ministry of Culture and 
Fine Arts equivalent to registration of the copyright, or are they separate activities?  
 
Answer:  
The actions of the Ministry of Culture and Fine Arts are administrative measures.  
The administrative procedure requirements a re:  
 Request form: Definite party against whom the petition is filed and express claims and 
detailed facts and reasons  
 Identity of the Legal Status of the petitioner: such as individual or legal entity, valid ID 
card or valid business certificate  
 Proof of validity of works: Copyright work or documents/copyright registration certificate 
( if any) and other proof  
 Proof of infringement: fact of infringement activity or infringing goods  
 Other requirement:  
 the evidence established in a foreign country should b e notarized, certified and 
translated in Khmer  
 The party concerned has not lodged a lawsuit in the court in respect of the said 
Copyrights infringement dispute  
 No agreement between both parties regarding dispute resolutions.  
 Voluntary registration and auto matic protection of works enjoy the same protection.  
 There is no recordation in Cambodia.  
Q25:  If they are separate activities, is registration of the copyright a prerequisite to recording the 
copyright with the Ministry of Culture and Fine Arts for the p urposes of seizure of infringing copies 
of copyrighted works? If copyright registration is required, are infringing copies of copyrighted 
works eligible for seizure if a rights holder has applied for registration but a certificate of 
registration has not y et been issued?  
 
Answer:  
MCFA does not provide the recordation of copyright works for the purpose of enforcement. The 
enforcement of copyright infringement can be taken action through the provisional and border WT/TPR/M/364/Add.1  
 
- 18 - 
 
  measures as prescribed in Copyright Law befor e the enforcement authorities. Seizures of 
counterfeit copyright works can be done for registered, unregistered, and deposited copyright 
works by court order.  
 
Q26:  Can seizures of suspected infringing copies of foreign works be made without a registration ?  
At what point in an investigation does the Economic Police become involved? If there is widespread 
piracy (and counterfeiting) seen in particular street markets, which agencies have the lead in 
taking actions?  
 
Answer:  
1. Yes, if that work qualifies for p rotection under Cambodia's Copyright Law (Art. 3) . 
2. The Economic Police may investigate alleged infringement with regards to stock, reproduction, 
distribution, selling of infringing goods in the country.  
3. The economic police and CAMCONTROL  are the leading agencies to take action at ex officio or 
at the request from the owner.  
4. Special officers of the Ministry of Culture and Fine Arts are obliged to take action based on 
Sub-decree of Industrial Films dated 08 November 2016.  
 WT/TPR/M/364/Add.1  
 
- 19 - 
 
  BRAZIL  
The Secretariat Report  
 
3.1 Measures Directly Affecting Imports  
3.1.3 Tariffs - Page 32 (para 3.22)   
The Secretariat report states that Cambodia's applied MFN rate exceeded the bound rate for 
60 lines, including live animals. The document further notes that Ca mbodian authorities stated 
that these breaches would be rectified. In that regard, please answer:  
 
Q1: When are those rectifications expected to be completed?  
 
Answer:  
Customs is in the process of rectifying this issue and expected to finish in 2018.  
 
3.3 Measures Affecting Production and Trade  
3.3.8 Intellectual Property Rights  
 
Pages 70 -71 (para 3.140 to 3.146)  
 
In those paragraphs, the Secretariat report provides an overview of the copyright legislation 
applicable in the country. One recent development  at the international level has been the WIPO 
"Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually 
Impaired or Otherwise Print Disabled", which entered into force on September, 2016. In that 
regard, please answer:  
  
Q2: What is the current stage of the WIPO "Marrakesh Treaty" ratification process in Cambodia? 
Does your copyright legislation contain limitations and exceptions for the benefit of the blind, 
visually impaired and otherwise print disabled?  
 
Answer:  
1. Cambo dia is in the process of ratification.  
2. No limitations and exceptions for the benefit of the blind, visually impaired and otherwise print 
disabled in Cambodia Copyright law and Regulations.  
 
 WT/TPR/M/364/Add.1  
 
- 20 - 
 
  SEPARATE CUSTOMS TER RITORY OF TAIWAN, PE NGHU, KINMEN AND MAT SU  
(CHINESE TAIPEI)  
The S ecretariat  Report  
 
Page 6 (Para.  2) 
 
Cambodia is faced with a number of structural constraints and vulnerabilities, which affect 
economic growth and render the economy and financial system vulnerable to shocks.  (….). 
Measures undertaken to address some of these issues include the launching of the Industrial 
Development Policy (IDP) in 2015, the simplification and automation of companies' registration, 
and increasing the depth of the financial sector and the foreign exchange mar ket. 
 
Q1: Could Cambodia please provide further information on the milestones that the government 
has achieved, or expects to achieve, through the Industrial Development Policy (IDP) introduced in 
2015?  
 
Answer:  
IDP Secretariat has been established in 22 J une 2017 to do the coordination work regarding the 
implementation of the IDP. As of date, the secretariat has finalized its progress report, including 
milestones of achievements to the Office of Council of Ministers for endorsement. The report can 
be provi ded upon request once it's endorsed.  
 
2. TRADE AND INVESTMENT REGIMES  
2.2.2 Transparency  
 
Page 26 (Para. 2.17)  
 
A National Anti -Corruption Council (NCAC) and an Anti -Corruption Unit (ACU) were set up in 2010 
with the task of following a zero -tolerance poli cy under the first Five -Year Strategic Plan 2011 -
2015 and they remain in charge of the implementation of the anti -corruption strategy and 
legislation. The second phase of the Five -Year Strategic Plan 2015 -2020 continues to follow the 
three -pronged approach , namely education, prevention and law enforcement to fight corruption.  
 
Q2: Since the establishment of the NCAC and ACU, what have been the results in terms of the 
effectiveness of regulatory enforcement during the first Five -Years of the Strategic Plan, 
2011-2015? Is it foreseen that any new measures or policies will be in troduced during the second 
Five-Year phase of the Strategic Plan, and if so, what are they likely to be?  
 
Answer:  
Since the establishment of National Council Against Corruption (NCAC) and Anti -Corruption Unit 
(ACU), we are now in 2nd year of the 2nd mandate, meaning in both mandates, the NCAC has 
significantly launched 5 strategies (1. Education 2. Prevention and Obstruction 3. Law Enforcement 
4. National and International Cooperation 5 . Good Governance Management and Internal 
Discipline).  
 
Overall, the 5 Strategic Plans and 81 Core Action Plans implemented by the ACU in the first five -
year mandate from 2011 -2015 and for the Action Plan in 2nd Phase (2015 -2020) the NCAC  
continues to launch the Strategic Plan based on the experiences, enforcements and best practices, 
which enables the 81 Core Action Plans being implemented in the new situations.  
 
Having implemented every element of the Strategic Plans set out by NCAC, we could briefly 
conclude that the uses of the 3 prong approaches (1. Education towards corruption intolerance; 
2. Prevention and Obstruction as not being able to corrupt; and 3. Sending the corruption 
offenders to the court for prosecution) have contributed to the significant achievements as the 
followings:  
 
1.  Public officials ranking from Director of Department upward (Police or Armed Forces 
ranking from the Colonel upward) have changed their attitude after having obliged to 
declare assets and liabilities ini tially in 2011 and afterwards.  
We could sum up in short that the Assets and Liabilities Declaration, which was not existed 
for thousand years in Cambodia's history has rapidly become a new culture.  WT/TPR/M/364/Add.1  
 
- 21 - 
 
   
2.  Social attitudes including the citizens and Public Offi cials prior to the establishment of Anti -
Corruption Law (17th April, 2010) and the entry into force dated 2nd August, 2011 was not 
changed. Nowadays, in the public service sectors people dare to speak and file complaints 
against the public officials who un lawfully demand money from them, which is far different 
from their past habit to pay money whenever they want something.  
  
3.  In the first year following the establishment of Anti -Corruption Unit, an unimaginable 
transformation of social attitude is seen thr ough the National Examination for Grade 12 
students; including students, teachers, parents and guardians have their mindset being 
transformed by the new quality as the so -called diamond or justice that they fairly enjoy 
perceiving for all including the ric h, the poor, the strong and the weak. The widespread of 
social critics were completely faded away since the first to the fourth year.  
 
4.  Certain reforms have brought about great effectiveness as the ACU has received 
complaints one after another relating to  salary deductions, and the complaints were 
prosecuted by the court resulting in positive impacts in the society.  
Apart from that the Administrative Reform on salary payment via ATM has brought about 
total elimination on Public Officials' irregular salary  deduction.  
 
5.  Within only 3 years, we have compiled Anti -Corruption Education Book into the 3 level of 
national education curriculums starting from primary level (grade 4, 5, and 6), lower -
secondary level (grade7, 8, and 9) and upper -secondary level (grade  10, 11, and12) and 
have also published teachers' books and students' reading books which one anti -corruption 
book shared by two students.  
 
6.  Another remarkable achievement lies upon the Private Sectors. Besides obstructing and 
sending corrupt public offic ials to the court, we also gather private sectors to sign an MoU 
with the ACU as not to bribe the public officials, and in case the public officials demand 
unlawful payments the private sectors concerned must report to the ACU to take measures 
to get more and more private companies to confidentially stand and cooperate closely with 
the ACU to fight against corruption. We recall a US conglomerate namely the Coca Cola 
which has become the first locomotive to persuade numbers of private companies to create 
an MoU club that has contributed a big influence on other Cambodian private companies in 
Cambodia, and even though we are still having many difficulties, the US, EU, Korean, 
Japanese, Chinese companies and other companies etc., have firmly expressed that the 
business environment in Cambodia is clean after the existence of the ACU.  
 
Despite a short period of time and social attitudes have not fully changed, we could see significant 
changes regarding the declaration of assets and liabilities and Grade 12 Nation al Examination.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
 
Page 47 (Para 3.39)  
 
Cambodia does not have any anti -dumping, countervailing or safeguard legislation, and it has 
notified this to the WTO. At the time of the last review, a single draft law, which addressed anti -
dumping and safeguard measures, and allowed for the later preparation of a sub -decree covering 
countervailing measures, was being rev iewed by an inter -ministerial drafting group and the 
process was expected to be completed by the end of 2011. At the time, the authorities stated that 
the draft law closely followed the WTO safeguards and anti -dumping agreements. The draft law 
detailed pro cedures for identifying dumping and for establishing normal values, export prices, and 
dumping margins. Procedures for the conduct of anti -dumping investigations, including the 
determination of material injury and a causal link, and for establishing and re viewing anti -dumping 
duties, were also addressed in detail. With respect to safeguards, the draft defined serious injury 
and the threat thereof and causation. It described procedures for initiating and conducting 
safeguard investigations and applying safeg uard measures. According to the authorities, the draft 
law is currently being reviewed by the National Assembly and is expected to be in force by the end 
of the year.  
 WT/TPR/M/364/Add.1  
 
- 22 - 
 
  The Separate Customs territory of Taiwan, Penghu, Kinmen and Matsu would like to congrat ulate 
Cambodia on its introduction of legislation on anti -dumping and safeguard measures, which is 
expected to be completed very soon.  
 
At the same time, may we respectfully remind Cambodia that Members are required to notify their 
domestic laws and/or reg ulations on anti -dumping and safeguards separately to the Committee on 
Anti-Dumping Practices and the Committee on Safeguards and Countervailing Measures 
respectively, in accordance with Article 18.5 of the Anti -Dumping Agreement and Article 12.6 of 
the Ag reement on Safeguards.  
 
Q3: What are the legislative procedures for the relevant anti -dumping and safeguard measure 
legislation? What is to be the date of the entry into force of the draft law? Which department will 
be the future authority responsible for such matters?  
 
Answer:  
The draft Law on Trade Remedies was adopted by the National Assembly on 12 October 2017 and 
approved by the Senate on 27 October 2017. The Law is expected to be promulgated by December 
2017, and Cambodia will notify to the Committee on Anti -Dumping Countervailing Measures and 
Committee on Safeguard of the WTO accordingly. A draft implementing Anukret will be presented 
to the Council of Ministers after the promulgation of the Law. The Law establishes a new entity, 
the National Trade Re medies Committee, chaired by the Minister of Commerce, which will be 
responsible for investigations and all other matters relevant to the Law.  
 
3.3 Measures Affecting Production and Trade  
3.3.2 Standards and other technical requirements  
Testing, inspection  and compliance  
 
Page 56 (Para 3.80)  
 
3.80. Under the provisions of the Law on the Management of Quality and Safety of Products and 
Services of 2000, the Cambodia Import -Export Inspection and Fraud Repression Directorate 
General (Camcontrol ) in the Ministry of Commerce is responsible for the safety and quality 
standards, as well as the certification and verification of imports and exports. Export inspection 
covers garments, agricultural products, rice, wood and processed food. Import inspect ion 
concentrates on food, agricultural chemicals, petroleum, textiles and garments. Domestic market 
surveillance targets food safety and commercial fraud. Camcontrol operates laboratories for food 
testing, for cereal testing and for petroleum products. Vio lations of the Law can result in 
confiscation of the offending goods, fines and legal proceedings.  
 
Q5: What are the import inspection requirements for industrial products and general consumer 
commodities (e.g., technical regulations, conformity assessmen t procedures, acceptance of test 
reports and certificates issued by foreign certified bodies like the IECEE CB Scheme and the 
ILAC/APLAC MRA, or adoption of the commodity inspection marks of other countries)?  
 
Answer:  
The Institute of Standard of Cambodia (ISC) requires the import industrial regulated products to 
be registered at the ISC to get a license to bear a safety mark on the products. In this regard, we 
require the importer to show the related test reports and certifications from any accredited body  
who is signatory of ILAC/APLAC or IAF or implementing the IECEE CB Scheme.  
 
4. TRADE POLICIES BY SECTOR  
4.2 Mining and Energy  
4.2.2 Energy  
 
Page 86 (Para 4.43) 
 
During the review period, the General Department of Energy (GDE) of the Ministry of Mines and 
Energy (MME) implemented the Energy Sector Development Plan 2005 -2024 which is aimed at: 
promoting the exploration of energy sources such as hydropower, natural gas, and coal for 
electricity generation; ensuring stability in electricity supply to facilitat e investment and 
socio-economic development; encouraging the efficient use of energy and mitigating the adverse 
effects on the environment resulting from energy supply and use; encouraging the private sector WT/TPR/M/364/Add.1  
 
- 23 - 
 
  to invest in energy, including in generation, tr ansmission and distribution; fostering the 
development of all types of renewable energy such as biomass, biogas, bio -fuel; enhancing the 
efficiency of energy through the use of energy -saving stoves to reduce the use of fuel, firewood, 
charcoal; and promoti ng regional energy trade through bi - and multilateral cooperation.5 These 
objectives remain unchanged in the Energy Sector Development Plan 2017 -2030. The MME 
remains in charge of preparing and implementing policies, strategies, rules and regulations for t he 
energy sector; setting standards; maintaining and analysing data on electricity supply/demand 
and energy resources.  
 
Q6: Could Cambodia please provide further details of the mechanisms introduced to encourage 
private -sector investment in power generatio n, transmission and distribution? In addition, will 
private enterprises be allowed to provide retail electricity services?  
 
Answer:  
Cambodia has one of the most open and liberal economies in the world. This is verified by various 
publications and internat ional organizations, such as the World Bank, the ADB etc. We have an 
attractive Investment Law and the Royal Government understands and helps foster an investment 
climate that welcomes and provides incentives to private -sector investment. This applies to a ll 
sectors and particular to power generation, transmission and distribution, which are predominantly 
supported by private investment. Virtually all power plants, transmission and distribution lines are 
built and operated by private sector investors.  
 
With regard to laws and regulations, we have promulgated the Electricity Law that sets clear rules 
and structures with respect to policy, private operators and regulatory body. The Royal 
Government has created the Electricity Authority of Cambodia (EAC) as the  regulator and has 
commercialized the state -owned electricity utility company Electricité du Cambodge (EDC). The 
Ministry of Mines and Energy will be responsible for setting policy and establishing the power 
sector development master plan, which include 3 strategic objectives:  
 
  Development of power generation: develop and diversify domestic power generation 
capacity from hydro, thermal, biomass and renewable as well as increase cross border 
power connectivity.  
  Development of transmission line: develop and  upgrade national transmission lines (both 
high-voltage, medium -voltage and low -voltage); increase connectivity within the Greater 
Mekong Sub -region and the ASEAN power grid network; and maximize mini -grid in rural 
areas.  
  Development of rural electrificat ion: Supply from the National Grid, Mini -grid, Grid 
extension and stand -alone system (BCS, SHS, Micro Hydropower, biomass, etc.)  
 
In conclusion, the Royal Government of Cambodia welcomes and encourages private sector 
investment in power generation, transmission and distribution (which include retail electricity 
services)  
 
Q7: Should foreign companies intending to provide electricity services to Cambodia, including 
those relating to power generation, transmission, distribution and sales, expect to fac e any 
barriers to their market access?  
 
Answer:  
As indicated earlier, the Royal Government of Cambodia welcomes and encourages private sector 
investment both domestic and foreign. As a productive member of the international community, 
Cambodia does not unf airly treat foreign companies who invest in the country. Investors are fully 
protected under Cambodia's various international investment and trade treaties obligations and 
under Cambodian Investment Law.  
 
Q8: One of Cambodia's goals in the development of t he energy sector under the 2015 -2024 Plan is 
to enhance bi - and multi -lateral regional energy cooperation. Could we please have further 
information on the milestones your government expects to achieve with the 2017 -2030 Plan, and 
your views on the future p rospects for success?  
 
                                                
5 Ministry of Planning (2014), National Strategic Development Plan 2014 -2018, 17 July. Viewed at: 
http://cdc -crdb.gov.kh/cdc/documents/NSDP_2014 -2018.pdf .  WT/TPR/M/364/Add.1  
 
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  Answer:  
Our vision for energy sector is to have enough energy supply with proper transmission line 
covering countrywide, together with better service, stability, security and lower price. Our aim is to 
better living condition of Camb odians especially those who are living in rural area and those who 
migrant to work in the city and contribute to promoting agricultural and industrial development.  
 
As energy demand is on the rise, we are currently working on developing new energy sources.  
Along with this, we have the high voltage transmission line of 115KV and 230KV covering the 
capital city of Phnom Penh and other 17 other provinces. Furthermore, a number of energy supply 
infrastructure such as medium voltage and low voltage have also bee n developed.  
 
From now to 2030 We are working toward the goals of rural electrification development program 
as follow:  
 
1.  All villages to be electrified with electricity of any types by the year 2020; and recently we 
have achieved by supplying electricity f rom the national grid to 10,589 villages equivalent 
to nearly 75% of all villages.  
 
2.  At least 70% of households will have access to grid quality electricity by the year 2030; 
and currently we have connected 2,159,324 households equivalent to roughly 66% o f all 
households.  
 
Furthermore, we encourage the efficient use of energy and minimize the detrimental environment 
affects which resulted from the energy supply and consumption. We expect to substantially 
increase clean renewable energy to our energy mix.  
 
4.4 Services  
4.4.3 Financial services  
4.4.3.1 Banking and finance  
Regulatory framework  
 
Page 96 (Para 4.72)  
To further strengthen the microfinance sector, on 13 March 201 7, the NBC issued Prakas 
No. B7-017-109 PK  on the Interest Rate Ceiling on Certain Loans. It sets the interest rate ceiling 
on loans provided by microfinance deposit -taking institutions, microfinance institutions, and rural 
credit operators under the NBC's supervisory authority. The main objective  is to protect consumers 
from excessive interest rates and to promote the use of affordable loans. Under this Prakas, the 
impacted institutions may not set interest rates exceeding 18% per annum for any maturity of 
loan. Such interest rate ceiling is effec tive for new loan contracts, including restructured loans and 
refinancing, executed from 1 April 2017.  
 
Page 98 (Para 4.78)  
High, albeit declining, interest spreads between lending rates and the remuneration of deposits 
remain in place. Between January 201 1 and end -December 2016, Cambodia's bank interest rate 
spread (difference between the average borrowing and lending rates in nominal terms) dropped 
from 21.3% to 15.8% (Chart 4.1) due to the increase in the number of banks which increased 
competition in th e market. Changes in the spread are an indicator of profitability developments as 
the spread is where a bank makes its money.  
 
Q9: Strengthening consumer protection is an important issue, especially for MSMEs. Could 
Cambodia please indicate the percentage that microfinance institutions represent of its entire 
financial industry, and historically the average lending rates for microfinance institutions? In 
addition, please elaborate further on how the upper limits of the lending rate maintain stability in 
the financial market, and what are the relevant complementary measures?  
 
Answer:  
Cambodia's microfinance sector has rapidly developed during the last two decades. This sector's 
assets represent now 16 percent of financial sector's. The lending interest rate h as decreased quite 
substantially, it decreased from 40% on average in 2005 to 25% in 2016 and below 18% in 2017. 
These reductions were due to the increase in the competition in the sector, cheaper costs of funds 
from abroad, lower credit risks, economy of scale as the network was expanded and lately because 
of interest rate ceiling. To ensure the smooth implementation of this interest rate ceiling the WT/TPR/M/364/Add.1  
 
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  National Bank of Cambodia has met regularly with banks and financial institutions to discuss their 
concerns  and the impacts. Overall, the microfinance sector is still making profits and fulfil its 
functions smoothly.  
 
PART II: REGARDING THE GOVERNMENT REPORT  
 
4. ENHANCING CAMBODIA'S COMPETITIVENESS  
4.4 Expanding the Availability of Electricity and reducing its cost 
 
Page 13 (Para 4.53) 
 
The availability and cost of electricity are key components of competitiveness. Electricity costs in 
Cambodia are higher than in neighbouring countries and availability is less assured, thus 
diminishing Cambodia's relative attrac tiveness as an investment destination and export platform. 
Expansion of the electricity grids so as to provide access to electricity throughout the country, 
ensuring reliable provision of electricity to industrial zones, and lowering the costs of electrici ty for 
commercial and industrial purposes are high priority objectives in the period ahead. Demand 
forecasts indicate that meeting these supply objectives and underpinning expected overall rapid 
economic growth will require an increase in the national elec tricity supply from 6,015 GWh in 2015 
to 9,406 GWh in 2020 and 14,951 GWh in 2025. At the same time, reductions in the cost of 
electricity will require that lower -cost sources of power, in particular hydro, play a greater role in 
overall supply.  
 
Q10:  Could you please provide further information on the mechanisms used by your government, 
either by encouraging foreign direct investment or by international trade/investment cooperation, 
to expand the electricity grid?  
 
Answer:  
The Royal Government of Cambodia is committed to our duel policy objectives of supplying 
electricity to all villages by 2020 and 70% of all households by 2030. To achieve this, the Royal 
Government of Cambodia is committed to expand our national grid, transmission and distribution 
network  to all corners of the country. The Royal Government of Cambodia welcomes and relies on 
all the assistance and help from all partners and in all forms including grants, concession loans, 
private sector investments and our own government budget. Up to now, the Royal Government 
has been successful in receiving the supports from those sources and we are on track to meet our 
duel energy policy objectives of supplying electricity to all villages by 2020 and 70% of households 
by 2030.  
 
PART III: OTHER QUESTIONS  
 
Cambodia's cooperation with the EPO  
It is our understanding that Cambodia signed an agreement with the EPO on 23 January 2017, to 
extend the validity of European patent applications and patents to Cambodia, upon the request of 
the applicant. This means tha t Cambodia will be the first Asian country to recognize European 
patents in its territory.  
 
Q11: According to the EPO website, however, this agreement has not yet come into force.  
Could Cambodia please let us know the likely timetable for this agreement e ntering into force, and 
whether the signing of similar agreements with other WTO Members is being considered?  
 
Answer:  
The agreement has been ratified by the Assembly and approved by the Senate and is waiting for 
the promulgation by His Majesty the King. I t's expected to be implemented in the first semester of 
2018.  
 
Cambodia is prepared to consider similar agreements with other WTO Members.  
 WT/TPR/M/364/Add.1  
 
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  INDONESIA  
The S ecretariat  Report  
 
Summary - Page 7 Para 11  
"The simple average applied MFN tariff in 2017 was 12.3%, a slight increase from 11.7% in 2011 
.. . In 2017, the applied MFN rate exceeded the bound rate totally for 60 lines, partially for 29 lines 
and possibly for 14 lines; the products affected include: machinery and parts, fireworks, live 
animals, gaso line and diesel."  
 
Q1: Would the Government of Cambodia clarify the increase on its simple average applied MFN 
tariff?  
 
Answer:  
The increase on its simple average applied MFN tariff is the result of an increase in tariff lines 
during transposition from AHTN2007 to AHTN2012 and from AHTN2012 to AHTN2017.  
 
Q2: Would the Government of Cambodia clarify about these 60 tariff lines with applied MFN rates 
exceeded the bound rates?  
 
Answer:  
The tariff lines with applied MFN rates exceed bound rates will be rectified accordingly.  
 
Page 7 Para 14  
 
"Currently, over 1,500 tariff lines are subject to import prohibition or licensing."  
 
Q3: On page 7 Para9, it's said that "During the review period, Cambodia has submitted few 
notifications to the WTO (e.g. tariffs, import licensing requirements, and agriculture)," we would 
like to clarify whether the Government of Cambodia has notified those import prohibition or 
licensing measures to WTO?  
 
Answer:  
In 2012 Cambodia submitted WTO import licensing questionnaires coveri ng forestry products and 
fish and fisheries products (G/LIC/N/3/KHM/2) and in 2013 the procedures for live animals and 
animal products and agricultural materials (G/LIC/N/3/KHM/3). This information will be updated in 
the coming months.  
 
Page 8 Para 15  
 
"There is also a working group to monitor prices of essential commodities, which include rice, fish, 
chicken, pork, regular gasoline and diesel, and cassava."  
 
Q4: Would the Government of Cambodia give more elaboration on this working group?  
 
Answer:  
The purp ose of the establishment of the working group is to study the cost structure and market 
situation of major commodities and to address the supply side constraints such as production cost, 
logistics cost, market access, and to compile consumer price index fo r public dissemination.  
 
Page 8 Para 16  
 
"Certain products (mainly rubber, processed timber, jewelry, silverware and uncut or unprocessed 
precious stones, fish and other aquatic products, art and cultural products, raw fruit and 
vegetables, live animals, garments, drugs and medicines and certain agricultural materials) require 
export licenses, certificates and permission letters."  
 
Q5: Reiterating page 7 para 9 that said "During the review period, Cambodia has submitted few 
notifications to the WTO (e .g. tariffs, import licensing requirements, and agriculture)," we again 
would like to clarify whether the Government of Cambodia has notified these export measures 
(export licenses, certificates and permission letters) to WTO?  
 WT/TPR/M/364/Add.1  
 
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  Answer:  
"In 2012 Cambodia submitted WTO import licensing questionnaires covering forestry products and 
fish and fisheries products (G/LIC/N/3/KHM/2) and in 2013 the procedures for live animals and 
animal products and agricultural materials (G/LIC/N/3/KHM/3). This information will b e updated in 
the coming months. Cambodia has not notified any export measures." In the near future, 
Cambodia will notify export measures on export license and Kimberly Process Certificate (KPC) as 
required by the WTO.  
 
Page 8 Para 18  
 
"Currently, there are  804 Cambodian standards, mainly on foods, electrical appliances, and test 
methods, of which 151 are technical regulations. According to the authorities, nearly 83% of 
Cambodian standards are aligned with international standards."  
 
Q6: We fully understand and appreciate that 83% of Cambodian standards are aligned with 
international standards. However, when we checked the TBT Information Management System, we 
found only 3 TBT notifications ever notified by the Cambodian Government, while as stated above 
it has at least 151 technical regulations. Therefore, we would like to seek clarification from the 
Government of Cambodia on this matter?  
 
Answer:  
At the moment, we have adopted 804 standards as Cambodian standards of which 151 standards 
are technical regulati ons. 29 of the technical regulations are not aligned with international 
standards. 3 of them have already been notified and the remaining 26 will be notified in due 
course.  
 
Page 8 Para 21  
 
"Cambodia has never notified any state trading enterprises to the WTO as defined under 
Article  XVII of the GATT."  
 
Q7: Would the Government of Cambodia give clarification on this matter?  
 
Answer:  
Cambodia has no state trading enterprises.  
 
Page 9 Para 23  
 
"Illegal trade of fisheries and forestry items persists."  
 
Q8: Would the Government of Cambodia give more elaboration on this matter?  
 
Answer:  
A) Answer to Question 8: FISHERIES  
The illegal fish trade in Cambodia is mainly characterized by illegal activities in marine fisheries. 
Measures have been in place to deal wi th illegal activities, in particular Cambodia has:  
 Ceased to register vessels under the Cambodia's flag in September 2015;  
 Strengthened registration of fishing vessels using the online fishing licensing database 
which is being developed (supported by EU a nd SEAFDEC);  
 Strengthened collaboration with neighboring countries to combat illegal activities;  
 initiated the process of finalizing the NPOA -IUU; 
 Strengthened patrolling effort (with increased financial support and improved facilities);  
 Initiated the effective system of monitoring, control and surveillance (MCS) learning from 
the experience of other countries in the region . 
As a result, the illegal activities in Marine fisheries in Cambodian territory and illegal fish trade 
have been significantly redu ced. Trans -boundary collaboration needs to be further strengthened.  
 
B) Answer to Question 8: FORESTRY  
We have taken bold measure on combating illegal timber trade throughout the country. As the 
result, illegal trade of timber is significantly reduced. How ever, illegal logging at small scale still 
persists. We are working on Forest Law Enforcement, Governance and Trade (FLEGT) in order to WT/TPR/M/364/Add.1  
 
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  make sure our exports of wood products come from legal sources. We're strengthening the 
cooperation with other nations e specially through trans -boundary collaboration to combat the 
illegal activities.  
 
Page 9 Para 24  
 
"A 1% services charge on the f.o.b. value of exported forest and forestry products is in place."  
 
Q9: Would the Government of Cambodia give more elaboration o n this matter?  
 
Answer:  
The service fee on exports goes to the national treasury and helps finance activities related to 
verifying the legitimacy of wood product exports.  
 
Page 9 Para 25  
 
"Regulatory changes in 2016 introduced procedures, processes and conditions for the issuance of 
exploration and industrial mining licences; as from 2016, extracted minerals must be domestically 
processed to be exported."  
 
Q10: Would the Government of Cambodia elaborate on this domestic process of extracted 
minerals?  
 
Answer:  
In 2016 the Ministry of Mines and Energy issued two regulations.  
Sub decree 72 which introduces procedures, processes and conditions for the issuance of 
exploration and industrial mining licenses.  
 
Although the export of mineral resources other than  fully finished products was previously banned, 
the sub decree 195 allows certain minerals to be exported based on certain criteria and factors 
such as economic, social and environment.  
 
The royal government of Cambodia does not encourage exportation of m ineral resources or mining 
products in order to fulfil domestic demand. Exportation of mineral resources must take into 
account criteria such as value added, the availability of modern technology, and changes in 
international market conditions in order to bring maximum advantages and benefits from 
international trade.  
 
Using a rational approach, the Government of the Kingdom of Cambodia only allows export of 
mineral resources and mineral products that reflect comparative advantage and cost benefit 
analysis in term of economic, social and environmental factors.  
 
Page 9 Para 26  
 
"Tariff escalation remains pronounced in garments with the average MFN applied tariff on textiles 
at 5.7% against 15% on clothing."  
 
Q11:  Would the Government of Cambodia clarify about  this tariff escalation in the garment sector?  
 
Answer:  
Cambodia's major export products are garments. The tariff escalation is not relevant to most of 
Cambodian garment industry. Tariff escalation on this sector is for two main reasons: (1) to 
encourage domestic production of garments sold in Cambodia and (2) to raise revenue.  
 
Page 10 Para 31  
 
"Professional services remain relatively open to foreign investment as long as domestic registration 
and other requirements are met."  
 
Q12:  Would the Government of  Cambodia give more elaboration on the domestic registration and 
other requirements as mentioned above?  
 WT/TPR/M/364/Add.1  
 
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  Answer:  
Currently the CDC registers the QIP, mainly on manufacturing sectors. The terms "domestic 
registration and other requirements" refer to the registration at the relevant ministries as provided 
in their laws and regulations. For example, excise of the legal profession, t is subject to 
registration at the Bar Association of the Kingdom of Cambodia. . Another example, in the case of 
a civil engine er must obtain an operating licence from the relevant agencies.  
 WT/TPR/M/364/Add.1  
 
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  EUROPEAN UNION  
The Secretariat Report  
 
1 ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy  
 
Paragraph 1.1, page 11  
The Secretariat's report states that "…Strong GDP growth over the pa st decade has resulted in a 
reduction in poverty and inequality, with GDP per capita growing to around US$1,300."…" the 
Cambodian economy is largely informal, which would imply that GDP and GDP per capita are 
significantly underestimated, reducing the effe ctiveness of government policy."  
 
Q1: Could Cambodia indicate how it intends to reduce its informal economy?  
 
Answer:  
In general, there are 4 ways to reduce an informal economy within a country. They include: 1) Tax 
and other fiscal policies, 2) Labor  regulations and other employment interventions, 3) Broader 
business regulations, and 4) Administrative measures. Within those four broad groups, different 
governments are adopting different mix of policies, depending on country specific circumstances.  
 
In the case of Cambodia, the government has adopted and intend to adopt a range of measures 
meant to lower the costs of formality and improve the business environment, including tax 
incentives for SMEs (the biggest players in the informal economy), simplify ing tax administration, 
simplifying the business registration procedures, removing bureaucratic barriers to firm activity 
(for example digital applications, which reduce human interactions), and liberalizing labor 
regulations.  
 
In order to increase the benefits of formality, the government has tightened and will continue to 
improve and increase the scope of the link between social security contributions and benefits so as 
to strengthen the incentives for workers to formalize their employment status. The government 
has also strived and will continue to improve access to credit and other business services to 
strengthen the incentives for firms – especially small ones – to register their activity and pay 
taxes.  
 
1.2.3 Structural issues  
 
Paragraph 1.14, page 15 
 
The Secretariat's report states that "According to the Government's National Strategic 
Development Plan 2014 -18, structural reforms are needed to secure the Government's stated goal 
of inclusive and sustained growth. Structural constraints and vulnerab ilities faced by Cambodia 
include: a narrow economic base, weak business climate, and high dollarization coupled with 
underdeveloped financial markets. These structural features constrain growth potential and render 
the economy and financial system vulnera ble to shocks, while limiting the scope for responding to 
such shocks. Thus, structural reforms should include promoting diversification, enhancing 
competitiveness, and improving the business climate and inclusiveness…"  
 
Q2: Could Cambodia explain how it will improve the general business climate?  
 
Answer:  
Improving the general business climate is one of the key priorities for the Government of the 
Kingdom of Cambodia to attract both domestic and foreign direct investment (FDI ). So far the 
government has taken much effort to make business environment friendly. Even though the recent 
Doing Business Report released by World Bank indicated that the rank of Cambodia dropped from 
127th in 2016 to 131st out of 190 countries in 2017, when compared with leading economies, 
Cambodia has narrowed the gap with best practices, as reflected in the increase in the distance to 
frontier score from 54.54 to 54.79 over the past year. The reforms that Cambodia has been 
pursuing are helping to creat e a vibrant economy, which will boost prospects for many 
Cambodians and lift them out of poverty.  
 WT/TPR/M/364/Add.1  
 
- 31 - 
 
  Nevertheless, the Government of the Kingdom of Cambodia acknowledges that there is room for 
further improvement in the general business climate. The Governm ent is: 1) improving the 
business registration, applications for investment incentives, and reducing the time and simplifying 
the procedures for export and import 2) improving online applications for certificate of origins, 
3) reducing the administrative f ee and eliminating export management fee for exports of garments 
and footwear, 4) cutting cost of logistics and transportation, 5) planning to further cut the cost of 
electricity when there are more sources of energies and hydropower construction projects expect 
to be ready for power generation and promoting the stability of electricity supply, 6) further 
promoting tax payment and electronic payment through the banking system, 7) further investing 
in both soft and hard infrastructures such as road, railway,  sea port, waterway, and 
telecommunication, 8) promoting human capital development by investing in education and 
technical and vocational training, and 9) undertaking to amend the investment law.  
 
1.2.3.1 Diversification and competitiveness  
 
Paragraph  1.15, page 15,  
 
"Cambodia's export base remains narrow and reliant on low value -added garments. Garments 
production is highly substitutable between countries, and can migrate quickly to those with better 
price competitiveness. To mitigate the impact of any e xogenous shock, the Government launched 
the Industrial Development Policy (IDP) in 2015 to attract FDI into non -garments labour -intensive 
manufacturing. Rising minimum wages and stalled productivity improvements, along with 
heightened uncertainty from labo ur disputes, have been eroding competitiveness. According to the 
authorities, they remain committed to implementing the IDP and recognize the need to accelerate 
its implementation."  
 
Q3: The European Union is Cambodia's first destination of exports and second biggest beneficiary 
of the "Everything but Arms" initiative. Could Cambodia provide information about the minimum 
wage increase and relative growth in productivity in the garment and  footwear sectors during the 
review period?  
 
Answer:  
So far there has no detailed study on the relation between the increase of minimum wage and 
growth in productivity in the garment and footwear sectors. However, productivity is one amongst 
those social a nd economic criteria for assessing the increase of the minimum wage. Modernization 
of machineries and workers' skills is the core factor for increasing minimum wage from US$153 to 
US$170 by 1 January 2018.  
 
Q4: What concrete efforts have been taken to attr act foreign investment in higher added -value 
manufacturing beyond garment and footwear sectors?  
 
Answer:  
The Industrial Development Policy identifies priority sectors as follows:  
  New industries: electronic assembly, natural resource processing, high value -added 
garment products, industrial equipment assembly.  
  Supporting industries: SMEs supporting industry, light manufacturing, construction 
materials, food and beverage, packing e quipment for exports, transport and logistics.  
  Agro-industry . 
 
1.2.3.2 Business environment  
Paragraph 1.16, page 16  
 
"The cost of doing business remains high due to inadequate transportation links, elevated energy 
costs, and non -transparent and cumbersome government procedures.6 To address this issue, both 
the Law on Investment and the Law on Special Economic Zones are under revision aimed at 
improving the business environment and supporting diversification, in line with the IDP. 
                                                
6 According to the World Bank doing business survey, overall Cambodia ranked 131 out of 190 countries 
in 2016; it ranked 180 with respect to starting a business, 124 with respect to getting electricity and 178 for 
enforcing contracts. Furthermore, according  to the World Economic Forum's Global Competitiveness Index, 
Cambodia's rank was 89 out of 138 countries in 2015; corruption was identified as the biggest impediment to 
business, followed  by an inadequately educated workforce and inefficient government bur eaucracy.   WT/TPR/M/364/Add.1  
 
- 32 - 
 
  Furthermore, sin ce early 2014, the Government has initiated, among other things, a new wave of 
reforms for improving the business environment and investment climate. The focus of these 
reforms has been on: simplification and automation of the registration of companies (in tended to 
allow applicants to register a new company online in significantly less time, ultimately diminishing 
face-to-face contact with government agencies); automation of the Certificate of Origin (CO) (so 
that companies can apply for the certificate ele ctronically); and elimination of informal payments 
(17 large companies have signed an MOU with the Anti -Corruption Unit, 9 of which are located in 
the Phnom Penh Special Economic Zone (PPSEZ))."  
 
Q5: Is the application for electronic certificates of origin  automatic? Is also their issuance 
automatic?  
 
Answer:  
The electronic online application for certificates of Cambodian origin is automatic in the sense that 
it is available to all exporting firms. The issuance of certificates of origin is automatic in the sense 
that all applications fully and accurately submitted and reviewed, are granted. There is no legal 
framework in place related to digital signature, therefore, the printed C/O needs to be signed by 
the exporters and the issuing authority. For further d etail on the process, see Cambodia's Report 
to the Trade Policy Review Body, paragraph 4.33." Or through the website: https://co.moc.gov.kh.  
 
Q6: The Secretariat's report indicates that regardless of the Cambodian Government's reform 
efforts, the business environment in Cambodia is still undermined by corruption. Could Cambodia 
provide information on the measures taken in the area of judicial reform in order to address 
corruption issues in an effective way?   
 
Answer:  
Besides obstructing and sending corrupt public officials to the court, we also gather private sectors 
to sign MoU with the ACU as not to bribe the public officials, and in case the public officials 
demand unlawful payments the private sectors concerned must report to the ACU to take 
measures to get more and more private companies to confidentially stand and cooperate closely 
with the ACU to fight against corruption. We recall a US conglomerate namely the Coca Cola which 
has become the first locomotive to persuade numbers of private companies to c reate MoU club 
that has contributed a big influence on other Cambodian private companies in Cambodia.  
 
Reform of the judiciary against corruption in Cambodia is done through an open courtrooms, 
published decisions, and transparent recruitment and appointm ent procedures. In addition to these 
mechanisms, the government has also been working on two important target objectives. First is 
the review of existing legal framework and the establishment of new legislations related with 
corruption. Apart from an exist ing legislation regulating corruption issues such as criminal code 
and anti -corruption law, the government is now working on the draft law on the protection of 
witnesses and whistle blowers in corruption issues. Second is the law enforcement through an 
effective investigation and inspection mechanism strengthening and punishment on criminal acts 
related with corruption issues.  
 
The legal and judicial reform is an essential program of the government to establish a credible and 
stable justice sector upholding  economic growth. The three fundamental laws on the organization 
of court, status of judge and prosecutor, and supreme Council of Magistracy pertaining to the 
justice system were adopted and has been actively implementing. The national budgeting for the 
judiciary system is rapidly increased to over 40% comparing to last year, which indicates that the 
Cambodian government is strongly committed to this reform program. The new structure of court 
administration to support the court system for providing better j ustice service to citizens was 
established and is performing. Well management and administration of court by this new structure 
will provide more opportunities to the judge and prosecutor to play their independent role in 
effective adjudicating. The establ ishment of transparent and modernised legal framework is in 
process.  
 WT/TPR/M/364/Add.1  
 
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  2. TRADE AND INVESTMENT REGIME  
2.1 General Framework  
 
Paragraph 2.5, page 23  
 
"… As of July 2014, Cambodia enforced a new judicial organizational framework to strengthen the 
independence of judicial power and improve the service for citizens in accordance with the rule of 
law. The Courts of First Instance, i.e. the lower courts, were divided into specialized civil, criminal, 
commercial and labour courts, whereas the higher cou rts, i.e. the Supreme Court and the Courts 
of Appeal, were divided into specialized chambers such as criminal, civil, investigating (except for 
the Supreme Court), commercial and labour chambers."  
 
Q7: Could Cambodia elaborate on the revised judicial frame work, in particular if it envisages 
introducing a mechanism for independent reviews that would enhance investor confidence, and 
furthermore, strengthen the capacity of the Cambodian government to ensure effective 
implementation of its own laws and regulati ons? 
 
Answer:  
Important achievements of the Royal Government in realizing the vision of legal and judicial 
reform toward improving judicial independence are the modernization of legal framework and the 
improvement of judicial system and institution by adap ting the current judiciary to the new legal 
framework.  
 
Modernization of Legal Framework:  
The reform process is outlined in the Legal and Judicial Reform Strategy / Plan of Action and 
includes among other priority actions the development of the following three laws:  
 -Law on the Organization and Functioning of Supreme Council of Magistracy  
 -Law on Status of Judge and Prosecutors  
 -Law on the Organization of the Courts  
The three laws finally came into effect on 16 July 2014. Now, for the first time, Cambodia  has a 
comprehensive legal framework governing the judiciary. The main advantage of these three laws is 
that they will regulate an area, which was previously unregulated and also create more 
transparency as well as accountability. Because the above mention ed laws are only framework 
laws, they cannot be applied directly. Until then, a number of implementing regulations are 
necessary to outline technical details and process. If the implementation process is completed, the 
judiciary in Cambodia will be very di fferent from the judiciary we know. In addition to these 
three  fundamental laws, the government now is also working on other three important laws 
pertaining to democratic judicial system: Law on Status of Court Clerk, Law on Status of Notary 
and Law on Sta tus of Bailiff.  
 
Adapting the Judiciary to New Legal Framework:  
Adapting the current system to the new legal framework will be a herculean task, in term of 
providing personnel and financial resources as well as infrastructure and developing and applying 
necessary skills and systems. Change will not come overnight and the existing system will be only 
gradually replaced.  
 
The three laws also address the long -term concerns introducing oversight, standards, management 
of human and financial resources as well as a fundamental overhaul of court organization and 
management. For example, the new law on court organization calls for an administrative office 
with in the court set -up. The administrative office provides a centralized service and supports 
judicial perso nnel as well as the prosecution. The shift from existing model, where the judge is the 
sole court administrator to a professional court management by non -judicial personnel, is a 
significant change. The administrative function within courts could have a po sitive impact on case 
management, thus reducing backlogs and improving the access to justice.  
 
Another two major changes in court organization are the introduction of specialized courts with a 
special jurisdiction on labor and commercial disputes and the e stablishment of regional appeal 
courts. The four specialized courts on criminal, civil, labor and commercial jurisdiction will help 
improve the quality of judicial service and the efficiency of the court in fulfilling its adjudicative 
function through a sy stem which defines clearly who does what in the processing of a case from 
the beginning until the end. In addition to this, the establishment of regional appeal courts will WT/TPR/M/364/Add.1  
 
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  help push the judicial service closer to the people, improve access to justice and reduce the 
backlogs of cases at the current appeal court, which is the only appeal court we have in the 
country.  
 
2.2 Trade Policy Formulation and Objectives   
2.2.2 Transparency  
 
Paragraph 2.14, page 25  
 
"Cambodia attaches importance to making laws more t ransparent and readily accessible. However, 
the majority of laws are still published in Khmer only (some are translated into English) in the 
Royal Gazette, which is updated monthly and is available to all individuals and institutions (in hard 
copy only)" …  "In order to enhance transparency, a preliminary draft of a Law on Access to 
Information envisages procedures and the institutional setting for providing information (except for 
information classified as confidential) to the public at national and subnati onal levels; fines and 
imprisonment could apply to civil servants who fail to comply with its provisions."  
 
Q8: Could Cambodia indicate where foreign investors can find more information on the Royal 
Gazette and how to go about accessing it publicly in a ce ntralised manner and on -line? Could 
Cambodia give us more information about the scope, coverage and timelines of the draft Law on 
Access to Information?  
 
Answer:  
The Royal Gazette is regularly printed and available upon request. Information also can be 
retrieved from the General Department of Royal Gazette and Computer Services (first floor of the 
new building of the Office of Council of Ministers) Facebook's Page via 
https://www.facebook.com/ អគ្គនាយកដ្ឋាន -រាជកិច្ចនិងសេវាក ុំព្យូទ័រ -1030368983708013/. In addition, the General 
Department is preparing to upload the Gazette on the General Department's official website in 
local language.  
The scope and coverage of the draft Law to Access to Information contains 09 chapters and divides 
into 39 articles:  
 
Chapte r 1: General Provision – 04 articles  
Chapter 2: Rights and Obligations of Providing Information – 05 articles  
Chapter 3: Procedures of Requesting and Providing Information – 10 articles  
Chapter 4: Confidential Information – 04 articles  
Chapter 5: Informati on Revelation Protection – 02 articles  
Chapter 6: Appeal and Enforcement of Decisions – 02 articles  
Chapter 7: Penalties – 09 articles  
Chapter 8: Transitional Provision – 01 article  
Chapter 9: Final Provision – 02 articles  
 
The scope of draft Law to Access  to Information  
 
This law is applicable to all pieces of information, which shall be provided by public institutions 
both at national administration and subnational administration across the Kingdom of Cambodia, 
with the exception of a certain number of confidential information laid down by this law.  
 
Procedures of Requesting and Providing Information  
 
Procedures of Requesting  
 
A request for information shall be made in writing with its detailed descriptions about the 
requested information and its forms to be addressed to public institutions.  
 
Procedures and formalities for requesting information shall be determined as follows:  
 
1.  Formalities for requesting for information:  
 Name, sex, age, nationality, occupation;  
 Current address and electronic address (if  any);  
 List of detailed information to be requested.  WT/TPR/M/364/Add.1  
 
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  2.  Applicant who has no ability to fill out application forms by him/herself due to illiteracy or 
disability may make a request for information orally. Officials in charge of information who 
received such a request shall gratuitously assist in writing information upon request 
accordingly and note his/her name in a certified copy and applicant's receipt.  
 
3.  Applicant may submit a written request for information directly or via its authorized 
representative to  officials of public institution or officials in charge of information, or may 
send it by post or by email to public institutions possessing that information.  
 
4.  Officials of public institutions or officials in charge of information who received a request 
for information shall duly register and issue receipts to the applicant;  
 
5.  Applicant shall take receipts from the officials of public institution or officials in charge of 
information right after filing application forms. For those making requests for info rmation 
by post or by email, receipts shall be issued based on the type of means of the request.  
 
6.  Officials of public institution who received a request for information shall forward such a 
request to officials in charge of information within 24 (twenty f our) hours of working days.  
 
7.  In the event that a request for information is wrongly addressed to competent institutions 
possessing information, officials in charge of information shall return such a request to the 
applicant as soon as possible and shall g ive more information as much as possible about 
the public institutions holding the requested information.  
 
Providing Information  
 
Public institutions shall provide precise information with its nature and form as requested by 
applicant, including but not li mited to:  
1.  A true copy of documented information from original documents;  
2.  A copy of documented information can be in writing, audio, picture, video, disk, or other 
forms;  
3.  Records in form of code numbers, acronyms, braille or other symbols;  
4.  In case a req uest for information is made in multi -languages, public institutions may 
provide information in Khmer or in language as its original format to applicant.  
 
Timelines:  
 
Overall, this draft law is done and currently is being in the process of discussion and c onsultation 
at the technical working group level through the monthly meeting of Technical Working Group 
(TWG -A2I). Through this technical working group meeting, the Ministry of Information gives civil 
society organizations the rights to organize public for ums through the field of education, 
environment, health, etc. and some sub -national target groups such as women, children, disabled, 
ethnic minorities, youth, etc. to collect inputs and comments from those forums submitting into 
the TWG -A2I discussion meet ing. 
 
This draft law is expected to be completed within the framework of the TWG -A2I by the end of 
2017 and plans to submit it into a discussion through follow -up procedure in 2018.  
 
2.4 Investment Regime  
Policy and institutional framework  
 
Paragraph 2.2, page 31  
 
"As at 2015, the Government was intending to initiate comprehensive institutional reform with a 
view to enhancing" the Council for the Development of Cambodia (CDC) 's "mandate in essential 
functions such as policy decision -making, preparation and implementation of plans, and addressing 
emerging challenges, but no recent information on this matter was available from the authorities."  
 
Q9: Could Cambodia provide information about the plans for institutional reform with a view of 
enhancing the policy role of the Council for the Development of Cambodia? Would such policy role 
include also investor protection?  
 WT/TPR/M/364/Add.1  
 
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  Answer:  
The new draft law on investment and draft law on special economic zones will take care of the 
institutional reform as mandated by the IDP . The law will embrace the investment protection 
elements that Cambodia has committed in the international investment agreements.  
 
Regulatory Framework  
 
Paragraph 2.30 and 2.31, page 32  
 
"No changes were made to the 1994 Law on Investment (last amended in  2003), the main piece of 
legislation governing investment in Cambodia. Under Sub -decree No. 111 (27 September 2005) on 
the Implementation of the Amendment to the Law on Investment, foreign and national capital 
receives the same treatment except for activi ties and land ownership subject to investment 
restrictions …"  
 
Q10: The EU commends Cambodia for having an open investment regime that grants national 
treatment for foreign investors in all sectors apart from four prohibited areas covering production 
of na rcotics, certain harmful substances, importation of waste and exploitation of forestry. The 
Negative List is not part of the 1994 Law on Investment, it has been legislated at a sub -degree 
level, which can be amended without Parliamentary approval. In order  to reduce future regulatory 
risk perceived by prospective investors, does the Cambodian government envisage incorporating 
the negative list into the draft amendments to the 1994 Law on Investment that has been under 
review since the last TPR in 2011?  
 
Answer: 
Negative list approach is our commitment not only in domestic laws, but also in international 
investment agreement in ASEAN and we will not back track.  
 
Dispute settlement  
 
Paragraph 2.36, page 34  
 
"…A National Arbitration Centre (NAC) under the auspices of the MoC, established in July 2006, 
became operational in March 2013, but has limited capacity and has received only four cases to 
date. Parties involved in a commercial dispute that have a written  arbitration agreement may seek 
settlement by means of quasi -judicial methods without involvement of the Cambodian courts, 
except when required by the relevant 2006 Law. Following the 2014 judicial organization "…" 
commercial chambers were created in order  to resolve trade and investment disputes.  
 
Q11:  Could Cambodia explain if the low number of cases involving commercial disputes is related 
to the limited staff resources of the NAC and its affiliation to executive branch of the government 
(Ministry of Co mmerce) and if the government has any plans to increase the capacity and 
independence of the centre?  
 
Answer:  
The NAC has been an independent center  since 2013 in term of management and decision making. 
The low number of case involving commercial disputes is not only related to the limited staff 
resources, but also budget resources. MoC only provides office location to NAC.  
 
Bilateral treaties develop ments and international cooperation  
 
Paragraph 2.38, page 34  
 
"Cambodia remains a signatory to bilateral investment promotion and protection agreements with 
more than 28 partners" … "They also guarantee repatriation of investments and provide for 
settleme nt of investment disputes via arbitration. Furthermore, Cambodia is part of the ASEAN 
Comprehensive Investment Agreement…."  
 
Q12:  In order to support its investment strategy (IDS) does the Cambodian government consider 
integrating the standards of treatmen t of the ASEAN Comprehensive Investment Agreement into 
the 1994 Law of Investment extending protection to all investors?  
 WT/TPR/M/364/Add.1  
 
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  Answer:  
Yes, major standards of treatment in the ASEAN Comprehensive Investment Agreement will be 
incorporated in the new draft invest ment law, which will apply to all investors.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
 
Paragraph 3.1, 3.3 and 3.4 page 36 -37  
 
"In recent years, Cambodia has made significant progress in improving its customs procedures and 
harmonizing them with international standards. Use of the single administrative document (SAD) 
and the one -stop mechanism is mandatory, so as to facilitate tra de and risk management. Under 
the one -stop mechanism, there is only one inspection, which streamlines customs procedures and 
reduces bureaucracy and paperwork. Furthermore, ASYCUDA is now operational at all border posts 
so as to facilitate customs procedur es as part of the one -stop service." As per the law every legal 
person must submit a customs declaration as a single administrative document (SAD). "The 
customs broker/declarant inputs the information from SAD directly into ASYCUDA, which verifies 
the info rmation and registers the SAD. The registered SAD needs to be signed and submitted with 
all required documents to the customs officer..."  
 
Q13:  The EU is pleased to note the reforms undertaken at Cambodian Customs under the review 
period. Could the Cambodian government indicate if the customs modernisation programme 
intends to expand online document capabilities of the customs; including allowing for secure online 
payments and on -line access to more detailed customs statistics (HS 8 -digit product level) now 
that ASYCUDA is operational? What are the foreseen timelines for expanding on -line 
documentation capabilities and removing the requirement for a duplicate paper based 
submissions?  
 
Answer:  
  GDCE  is developing electronic payment, which will allow traders/importers/declarants pay 
customs duty and tax online using Internet Banking or Mobile Banking. This module is 
currently under the testing stage and could connect successfully with two major banks.  It 
is planned to pilot the implementation of this function at the beginning of 2018.   
 
  Customs statistics (HS 8 digit level) is already made available on the website in the 
password protected section (https://tools.customs.gov.kh/asycuda -statistic). To access 
this information, users are required to have a secure account, with the reason to protect 
the privacy and confidentiality of the data.  
 
  ASYCUDA system provides Direct Trader Input (DTI) function which allows the 
traders/importers/declarants submit customs declaration from their premises. However, it 
is still required the traders to print out and submit the duplicate paper due to the lacks of 
electronic transaction law that supports the acceptant of electronic data.  
 
Paragraph 3.10, page 39  
 
"With a  view to enhancing trade facilitation and ensuring the accuracy of the customs declaration, 
Cambodia initiated advance ruling in January 2013. Upon request, Customs issues an advance 
ruling on tariff classification, customs valuation and rules of origin. A n advance ruling can be 
requested by an importer, producer of the goods, or an authorized person who will take 
responsibility for the imported goods. Advance ruling on tariff classification and rules of origin are 
usually issued within 30 working days, whi le those pertaining to valuation are normally issued 
within 90 working days. Advance rulings are valid for three years. Advanced rulings can be 
challenged in writing within 45 working days of issuance to the office that issued the ruling."  
 
Q14:  Could Camb odia explain who and on what grounds can challenge an advance ruling?  
 
Answer:  
The applicant can challenge an advance ruling decisions made by customs if they have additional 
evidence, supporting documents or other detail explanations other than previous d ocuments that 
already submitted.  WT/TPR/M/364/Add.1  
 
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3.1.2 Rules of origin  
 
Paragraph 3.15, page 40  
 
Cambodia does not employ non -preferential rules of origin; however, it has not notified the WTO 
to this effect. At the time of the last review, Cambodia was in the early sta ges of developing a 
draft regulation on rules of origin.  
 
Q15:  Could Cambodia briefly describe where it stands with drafting a regulation on rules of origin?  
 
Answer:  
A draft regulation on non -preferential rules of origin is presently under examination by  the Ministry 
of Economy and Finance and the Ministry of Commerce.  
 
3.1.3.4 Tariff bindings  
 
Paragraph 3.24, page 43  
 
"The applied MFN rate exceeded the bound rate totally for 60 lines, partially for 29 lines and 
possibly for 14 lines in 2017 (Table A3.2).  The products affected include, inter alia: machinery and 
parts, fireworks, live animals, gasoline and diesel. The authorities stated that the reason for the 
breaches was change in nomenclature, and that these would be rectified."  
 
Q16:  Could Cambodia prov ide an affirmative timeline for rectifying the duties for tariff lines 
exceeding bound rates?  
 
Answer:  
The Process should be done within year 2018.  
 
3.1.5 Import prohibitions, restrictions, and licensing  
 
Paragraph 3.32, page 46  
 
The Secretariat's report states that " Import licences for pharmaceuticals, medical materials and 
narcotics are issued by the Ministry of Health. For pharmaceuticals, the licensing system is 
designed to control illegal imports and thus ensure the quality, safety and efficiency of p roducts 
available in the market. "…"All Cambodian firms are eligible to be so registered, provided that they 
have at least one employee who is a licensed pharmacist. In addition, there is a US$250 
registration fee for each product registered, which has to be paid by the company to the Ministry 
of Health. Licences are issued within ten working days. They are valid for one month but can be 
extended upon request. There are no fees or charges for the licence, and there is no penalty for 
non-utilization or under -utilization…"  
 
Q17:  Could Cambodia explain which measures are taken to ensure that import licenses for 
pharmaceuticals meet the product specific technical requirements stipulated in the marketing 
approvals?  
 
Answer:  
The Ministry of Health has to develop a  system to register the products before granting market 
authorization. Three areas should be subjected to review and evaluation (quality, safety and 
efficacy).  
 
Only registered products whose specifications conform to those specifications approved for 
marketing are allowed to be imported. Moreover, post -marketing surveillance with random 
sampling and testing of the pharmaceutical products sold in the market has been regularly done to 
ensure that the imported products are really conforming to the require d specifications. As a result 
of these surveillance activities, many marketing authorizations have been withdrawn because the 
concerned products did not meet the required specifications.  
 
The Registration system follows the scientific -review and evaluation  regulatory process. The 
Ministerial Proclamation (Prakas) on the Implementation of Visa and Registration of Medicines WT/TPR/M/364/Add.1  
 
- 39 - 
 
  dated 26 October 1994 requires that applicants submit data on quality, safety, and efficacy of 
pharmaceuticals for review before market a pproval is granted.  
 
For new drugs, the applicant has to submit data on quality, safety, and efficacy for the review and 
evaluation. If the drugs have no patent protection or its patent has expired, local pharmaceutical 
companies can register generic produ ct containing the same chemical compound. Since no patent 
protection is currently available, generic drugs can be registered on the basis of the safety and 
efficacy data previously submitted for an equivalent drug.  
 
The registration system for generic drug s does not required extensive data for review. This also 
applies to application of drugs equivalent to those already registered.  
 
The registration process currently employed is consistent with international regulatory practices, 
and helps to facilitate the  introduction of more affordable generic products to the public. The law 
does not exclude the use of data submitted by an earlier applicant for the evaluation of a product 
by a subsequent applicant, meaning that there is in the law no data exclusivity prov ision.  
 
3.1.6 Anti -dumping, countervailing, and safeguard measures  
 
Paragraph 3.39, page 47  
 
"Cambodia does not have any anti -dumping, countervailing or safeguard legislation, and it has 
notified this to the WTO. At the time of the last review, a single draft law, which addressed anti -
dumping and safeguard measures, and allowed for the later preparation of a sub -decree covering 
countervailing measures, was being reviewed by an inter -ministerial drafting group and the 
process was expected to be completed b y the end of 2011. At the time, the authorities stated that 
the draft law closely followed the WTO safeguards and anti -dumping agreements."…"According to 
the authorities, the draft law is currently being reviewed by the National Assembly and is expected 
to be in force by the end of the year."  
 
Q18:  Could Cambodia share the latest draft of the anti -dumping and countervailing legislation 
being discussed at the National Assembly?  
 
Answer:  
The draft Law on Trade Remedies was adopted by the National Assembly on 12 October 2017 and 
approved the Senate on 27 October 2017. The Law is expected be promulgated by December 
2017, and Cambodia will notify to the Committee on Anti -Dumping Countervailing Measures and 
Committee on Safeguard of the WTO accordingly. A draft im plementing Anukret will be presented 
to the Council of Ministers after the promulgation of the Law. The Law establishes a new entity, 
the National Trade Remedies Committee, chaired by the Minister of Commerce, which will be 
responsible for investigations a nd all other matters relevant to the Law.  
 
3.3 Measures Affecting Production and Trade  
 
Paragraph 3.65, page 54  
 
"There are certain projects which are not eligible for incentives, these include: all kinds of 
commercial activity, import, export, wholesale,  and retail, including duty -free shops… "  
and Paragraph 4.28, page 8 of the Government Report ,"….introduced its Best Traders 
Incentives Mechanism in June 2014 to provide benefits to traders who meet certain criteria. To 
date, 17 companies have qualified under the program and receive incentives including, among 
other things, receiving priority with  respect to customs procedures; exemption from pre -
verification of customs valuation and certificates of origin;…"  
 
Q19:  Section 4.28 of the Government Report mentions certain incen tives for traders while 
Section  3.65 of the Secretariat Report suggests th at import and export activities are not eligible 
for incentives. Could Cambodia clarify the types of incentives covered by these paragraphs?  
 
Answer:  
The incentives referred to in paragraph 3.65, page 53 of the Secretariat report are incentives to 
investor s, and are designed to encourage investment. They take mainly the form of holidays on 
profit tax, and exemption from import duties and VAT, as specified in Cambodia's Law on WT/TPR/M/364/Add.1  
 
- 40 - 
 
  Investment. The incentives referred to in paragraph 4.28, page 8 of the Government  Report are 
designed to encourage traders to meet the criteria for inclusion in the Best Traders Program. The 
incentives take the form of more favorable treatment with regard to certain customs procedures.  
 
3.3.3 Sanitary and phytosanitary requirements  
 
Paragraph 3.93 and 3.95, page 60  
 
"Testing and diagnostic capacity in Cambodia continues to be rudimentary and inadequate to meet 
modern demands." and "…most laboratories have no international accreditation and opportunities 
for obtaining it seem remote."  
 
Q20:  Could Cambodia elaborate on its efforts to modernize the country's SPS regime, in particular 
about its plans for upgrading and seeking international accreditation to its own laboratories and 
whether, in the meantime, it could consider cooperation agr eements with international test 
laboratories?  
 
Answer:  
At the present, Institute of Standards of Cambodia (ISC) also plays a role as Conformity 
Assessment body, in which there are two bodies operating testing and certification services.  
 
For testing servi ce, the management system of the Industrial Laboratory Testing Center (ILCC) is 
accredited by two international accreditation bodies against ISO/IEC 17025 requirements as 
follows:  
 
 Accredited by Singapore Accreditation Council -Singapore Laboratory Accredit ation Scheme 
(SAC-SINGLAS) since 3rd December 2010 and continue to renew its testing services according 
to the accreditation scheme. The accreditation is covered the in CHEMICAL testing with 
following scope of product tested:  
  Water chemical testing: bott led drinking water, Mineral water, Tap water, Raw water 
and Wastewater.  
  Food Chemical Testing: (Noodle, Yellow noodle, Sausage, Chilli sauce, Syrup, Flavour 
drink, Flour products, Rice products, Fish and fish sauce, soft drink, Fruit juice, Soft 
drink and  Hight water content based food products.  
  Non-Food testing: Soil, Textile and fertilizer.  
 Accredited by National Association of Testing Authorities, Australia (NATA) since 26th 
September 2012 and continue to renew its testing services according to the accreditation 
scheme. The accreditation is covered the Biological testing with following scope of product 
tested:  
  Microbiological tests on foods: Cereal products, Nuts and nut products, Dairy 
products, Meat and meat products, Poultry and poultry products, Eggs and egg 
products, Fish, crustaceans and mollusks, Sugar products, honey and confectionary, 
Vegetables and veg etable products, fruits and fruit products and Beverages.  
  Waters, including effluents: Bacteriological condition of potable waters and 
Bacteriological condition of environmental waters.  
For Certification service, the management system of Department of Ce rtification is accredited by 
the Joint Accreditation System of Australia and New Zealand (JAS -ANZ) against ISO/IEC 
17021:2011 requirements since 12th January 2015 in the field of Management system certification. 
The scope of the accreditation covers on Foo d Safety Management System -Food chain categories -
code E and for processing category.  
 
Ministry of Agriculture, Forestry and Fisheries (MAFF) has recently made the progress in upgrading 
its laboratory facilities. It has a well -equipped laboratory for testin g pesticide formulations and 
plant health laboratories with capacity for diagnostics of plant pests and diseases.  
 
Furthermore, as part of efforts to modernize the country's SPS regime, the MAFF has established a 
specialized SPS laboratory in the Royal Un iversity of Agriculture (RUA), which is equipped with 
facilities to support various R&D activities and training programmes to expand the pool of skilled WT/TPR/M/364/Add.1  
 
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  professionals in the field of plant protection and SPS administration. Besides, the National Animal 
Health and Production Research Institute (NAHPRI) is equipped with an "Ultra performance Liquid 
Chromatography (UPLC)" machine which allows this institute to test for chemical residues 
(veterinary drugs, pesticides, growth promoters and other contaminants) in  food and feed stuff, 
and the quality of veterinary drugs and animal feed. NAHPRI also has capacity to test for some 
food-borne pathogens.  
 
The draft law on plant protection and quarantine is being developed. Once adopted and enacted, 
the law shall provide  further impetus for strengthening SPS regime and testing capability 
development. When fully developed, efforts will be made to seek accreditations for the SPS 
laboratories from national and international accreditation bodies. Cambodia welcomes cooperation  
and technical assistance for upgrading the laboratories to meet the internationally acceptable 
standards.  
 
3.3.5 State trading, state -owned enterprises, and privatization  
 
Paragraph 3.104, page 62  
 
"Cambodia has not notified any state trading enterprises  to the WTO as defined under Article XVII 
of the GATT."  
 
Q21:  Has Cambodia any plans to notify any state trading enterprises in the short or medium 
term?  
 
Answer:  
Cambodia has no state trading enterprises.  
 
3.3.7 Intellectual property rights  
 
Patents, utility models, and industrial designs  
 
Paragraph 3.128, page 68  
 
The Cambodian authorities have drafted a new law regarding compulsory licensing for public 
health, which is currently under deliberation of the Council of Ministers.  
 
Q22:  Could Ca mbodia provide more detailed information on this law's expected procedural 
progression in the legislative system as well as its content, notably the criteria and procedures for 
granting a compulsory license as well as such a license's intended scope and du ration?  
 
Answer:  
1.  The draft law on compulsory licensing is being discussed by relevant ministries. Currently, 
the following issues are being dealt with the draft law:  
 Grounds for the issue the license  
 Authorization to use a patent without the consent of t he patent right holder  
 A competent authority grant the license  
 The government agency or private party can use the license (after fulfillment of 
requirements)  
 Quantity of production/ import/ export  
 Payment of Remuneration in form of royalty.  
 
2.  Scope and dur ation of Compulsory license:  
 the License can cover the product and process  
 Non assignable  
 Non exclusive  
 Be terminated when the circumstances which led to it cease to exist and are 
unlikely to recur.  
 
Paragraph 3.132, page 68  
 
"Applications for registration of a mark must be submitted to the Department of Intellectual 
Property Rights at the MoC or online."…"Priority is given to the person who first filed a valid WT/TPR/M/364/Add.1  
 
- 42 - 
 
  application or claimed the earliest priority to the mark."…"A trade mark owner has the right to 
prevent others from infringing their mark, and performing acts that make infringement likely."  
 
Q23:  Would Cambodian authorities consider the introduction of a system of pre -registration 
gazetting of trademark applications, so that interested parties can know, and oppose, possibly 
controversial marks before these are registered?  
 
Currently, we have no plan to introduce a pre -registration publication system. However, Cambodia 
trademark law provides the post -registration publicati on system for opposition, within 90 days 
after the date of publication in the Official Gazette. Any interested person may give notice to the 
Registrar of opposition to the registration of any mark. Moreover, application for invalidation or 
cancellation of registered marks can be made at any time after the opposition period has lapsed.  
 
Enforcement  
 
Paragraph 3.148, page 71  
 
The Report states that " at the time of the last review, the Council of Ministers had approved the 
establishment of a commercial court  to deal with commercial and IP cases ". 
 
Q24:  Could Cambodia please provide more information on the status quo concerning the 
establishment of this commercial court?  
 
Answer:  
The Law on Organization of the Courts was promulgated by His Majesty the King on July 16, 2014.  
 
Article 5:  
The lower court shall be divided into specialized courts. The establishment, dissolution and change 
of specialized courts shall be determined by Royal Decree.  
 
Article 14:  
Each Court of First Instance is divided in specialized  courts as follows:  
 A Civil Court  
 A Criminal Court  
 A Commercial Court, and  
 A Labor Court.  
When necessary, other Specialized Courts of First Instance may be created. Such creation and 
establishment shall be made by Royal Decree.  
 
Each Specialized Court of First instance can independently issue decisions in its jurisdiction in the 
name of the Court of First Instance to which it belongs.  
 
Article 37:  
The Court of Appeal shall be comprised of the following specialized chambers:  
 Criminal Chamber  
 Civil Chamber  
 Investigation Chamber  
 Commercial Chamber, and  
 Labor Chamber.  
 
Additional specialized chambers in the Court of Appeals may be established as necessary by Royal 
Decree.  
 
Each chamber independently renders its decisions within it competent jurisdiction on beh alf of the 
Court of Appeals where it sits.  
 
Article 57:  
The Supreme Court shall be comprised of the following specialized chambers:  
 Criminal Chamber  
 Civil Chamber  WT/TPR/M/364/Add.1  
 
- 43 - 
 
   Commercial Chamber, and  
 Labor Chamber.  
If necessary, other specialized chambers in the Supr eme Court may be established by Royal 
Decree.  
 
Each chamber independently renders its decisions within it competent jurisdiction on behalf of the 
Supreme Court.    
 
Paragraph 3.148 and 3.149, page 71  
 
The Cambodian "authorities stated that they are in the process of drafting an IP enforcement 
manual and procedure, which are expected to be adopted within two years."… "Cambodia's 
legislation provides for seizure, forfeiture, and destruction of infringing goods, evidence, copies, 
and equipment used in creating  the infringing goods, and prohibits the re -exportation of 
counterfeit trademark goods or use of different customs procedures. Under the regulations, 
customs authorities are allowed to inform right holders about the possible importation or 
exportation of i nfringing goods."  
 
Q25:  In their drafting of IP enforcement manuals and procedures, will the Cambodian authorities 
consider strengthening the framework for the application of provisional measures, e.g. by including 
more specific provisional measures in the  Trademark Law and by expanding the role of 
administrative enforcement authorities in taking such measures?  
 
Answer:  
Cambodia is preparing the draft sub -decree on IP Enforcement Procedure. Cambodia will endeavor 
to expand the role of administrative enforce ment authorities in taking such measures if it is the 
effective measure.  
 
Paragraph 3.152, page 72  
 
"Despite improvement in enforcement and the increase in seizures and prosecutions, IPR 
infringement continues to be widespread, ranging from software, compa ct discs, and music, to 
photocopied books and the sale of counterfeit products, including cigarettes, alcohol, and 
pharmaceuticals…"  
 
Q26:  Would Cambodian authorities considering including IPR -specific remedies in the relevant 
legislation, rather the Civil  Code ones that are currently applied, so as to increase the deterrent 
effect of court -awarded damages in cases of IPR infringement, especially in large -scale ones and/ 
or those involving organised crime?  
 
Answer:  
Each IPR law contains provisions on specif ic remedies. (e.g., Art. 132 – 135 of Law on Patents, 
Utility Model Certificates and Industrial Designs, Article 64 -65 of Law on Copyrights and Related 
Rights and Article 64 -65 of Law on Marks, Trade Names and Acts of Unfair Competition)  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.2 Overall commitments under the General Agreement on Trade in Services and RTAs  
 
Paragraph 4.63, page 93  
 
"Cambodia's commitments under the GATS reflect its aim to attract FDI and remained unchanged 
during the review period. Its Schedule of Specific Commitments covers 94 sub -sectors in certain 
business services, communication services, construction and related engineering services, 
distribution services, educational services, environmental services,"…"Except for a few services, 
such as basic telecommunications, travel agencies, tour operators, and tourist guides, no 
limitations to foreign ownership exist."  
 
Q27:  Would the Cambodian government be able to ensure that the new Environmental Act will not 
establish registration requireme nts or new restrictions that go beyond its Schedule of 
Commitments?  WT/TPR/M/364/Add.1  
 
- 44 - 
 
   
Answer:  
We understand the schedule of commitments within the WTO framework. We are also aware of 
how that schedule of commitments interacts with provisions within the draft Environmental Code 
Including on matters related to EIA consultants. We thank the EU and Eur ocham for the comments 
that they have provided on the current draft 9.1 of the Code as pertains to these issues. We 
expect to release an updated draft of the Code, draft 10, within the next four weeks, and expect a 
full resolution of this issue to be inclu ded in that draft 10. Furthermore Draft 10, like all previous 
drafts of the Code, will be disseminated publicly and we will welcome further comments and 
discussion from all parties upon its release. We do hope our response will help you clarify the EU 
question. 
 
4.4.3.2 Insurance  
 
Paragraph 4.84, page 100  
 
The report states that " During the review period, the contribution of insurance activities to GDP 
rose...as of 2016, overall insurance coverage in Cambodia amounted to 0.62% of GDP (2016)…"  
 
Q28: The EU welcomes that the contribution of insurance activities to GDP rose during the review 
period. Nevertheless, Cambodia's insurance penetration rate is fairly low as it amounted to 0.62% 
of GDP in 2016. Attracting well -regulated and well -capitalised foreign in surers might help 
increasing this coverage ratio. Would the Government of Cambodia consider opening up its 
insurance market for branches of foreign insurers in the near future?  
 
Answer:  
To implement the new insurance law, the Financial Industry General Dep artment of the Ministry of 
Economy and Finance is currently drafting a new Sub -decree. This new Sub -decree will allow 
foreign insurers to be able to set up its branches and subsidiaries in Cambodia, on the condition 
that they have to be licensed under the Cambodia's laws and regulations.  
 
Paragraph 4.92, page 102  
 
The report states that  "As of 2017, the state -owned Cambodia Re remained the only reinsurance 
company operating in the country. Under the ASEAN Framework Agreement on Services (AFAS), 
Cambodia has  committed to liberalize the reinsurance business. Domestic insurers are allowed to 
reinsure their risks abroad. According to the 2014 Law, an i nsurance company must, as a 
pre-emptive right, reinsure at least 20% of the insurance risk at the minimum insura nce premium 
rate defined by the MEF. Changes may be under way as Article 63 of the 2017 draft sub -decree 
implementing the Law on Insurance stipulates that reinsurance must be offered to insurance 
companies operating in Cambodia before reinsurance is arrang ed overseas..."  
 
Q29: Would the Government of Cambodia consider Article 63 of this draft sub -decree in 
accordance with the ASEAN Framework Agreement on Services?  
 
Answer:  
Following the adoption of the new insurance law, the Financial Industry General Depar tment of the 
Ministry of Economy and Finance of Cambodia is currently drafting a new Sub -decree. In this new 
Sub-decree, Cambodia will remove the condition that a compulsory cession of 20% on all non -life 
insurance contracts must be ceded to Cambodia Re. O nce this new Sub -decree is adopted, 
Cambodia is in accordance with the AFAS Agreement.  
 
4.4.5.1 Shipping  
Port services  
 
Paragraph 4.115, page 109  
 
"Cambodia continues to be mainly served by two ports: one river port in Phnom Penh and a 
seaport in Sihanoukville, the main trade gateway for seaborne cargo entering or leaving Cambodia 
handling about three -quarters of all trade traffic by volume."…"the number of containers handled 
by the two main ports is low by regional standards and a single entity, t he entirely state -owned WT/TPR/M/364/Add.1  
 
- 45 - 
 
  Kampuchea Shipping Agency and Brokers (KAMSAB), provides multi -modal (air, land, and sea) 
shipping agency, cruise, passenger and logistics services."  
 
Q30:  Could Cambodia explain if it has taken any measures to reduce domestic shipp ing costs 
under the review period? Could Cambodia indicate whether it has any plans in reducing lift -on/lift -
off charges? If such plans are considered, would they entail opening the shipping agency sector to 
competition (both domestic and foreign)?  
 
Answer : 
 Cambodia Shipping Agencies (Kamsab) provides only shipping services to handle ships in 
ports.  
 Freight forwarding and logistics services are currently being provided by many private 
companies (domestic, international)  
 Lo/Lo of ports is already discounted 10% for Shihanouk Ville Autonomous Port, 5% for 
Phnom Penh Autonomous Port, as well as 20% of tally fee of Kamsab.  
 There will be established National Logistic Council to monitor, facilitate, or settle logistics 
cost/time  
 The competition in shipping agency  is still not favourable due to less volume of ship's call 
at ports currently being  
 Port EDI (Electronic Data Interchange) is still being developed to facilitate ship's 
clearance process in ports.  
4.4.6.1 Distribution  
 
Paragraph 4.134, page 114  
 
The report states that  "Local and foreign firms are required to register with the MoC at least 15 
days prior to the commencement of business activities to obtain a business licence. Registration at 
MoC can be done via an online platform. Additional operating l icences can be required."  
 
Q31:  Could Cambodia specify and explain the conditions for the licence mentioned in this 
paragraph?  
 
Answer:  
In general, after registration with MOC, local and foreign firms can start their operation 
accordingly. In case the comp any business objective is subjected to obtain specific license; they 
shall apply for those license to the competent institutions. The criteria for obtaining additional 
license are differed from competence institutions to another. For instance, if the compa ny business 
objective is tourist agency, the company have to apply for the additional operation license from 
Ministry of Tourism.  
 
4.4.8.2 Legal services  
 
Paragraph 4.150, page 118  
 
"Decision No. 004/BAKC /16 on the Management of Practice of Legal Profession of Foreign Lawyers, 
issued on 8 January 2016, sets the requirements and procedure for the registration and practice of 
foreign lawyers in Cambodia. As of 9 September 2016, seven applications had been su bmitted to 
the BAKC but only three were being processed as the submission of documents was incomplete for 
the rest; the process is to be finalized in the course of 2017 and based on the decision of BAKC, 
the three applications would be approved by 50% plus  one vote of the Bar Council Members. 
Cambodia's GATS commitments on legal services permit foreign law firms to provide legal services 
with regard to Cambodian law in association with Cambodian law firms."  
 
Q32:  Could Cambodia ensure that the registration requirements for law firms do not restrict 
foreign law firms right to provide legal services (e.g. international law, investment advice, advice 
on domestic law) in Cambodia and to offer these services cross -the-border? Could Cambodia 
ensure that the regist ration criteria, as stipulated in Decision no. 004/BACK/16 on the 
Management of Practise of Legal Profession, does not include requirements for 'reciprocity' or any 
other additional criteria going beyond the commitments in its GATS schedules?  
 WT/TPR/M/364/Add.1  
 
- 46 - 
 
  Answer:  
1- Legal Framework  
 
a) Law on the Bar  
 
Law on Bar has been adopted by the National Assembly of the Kingdom of Cambodia on Thursday, 
15 June 1995, during the 4th Plenary Session of the 1st Legislature. (1995)  
 
ARTICLE 5:  
 
Foreign lawyers whose names have been re gistered by the Bar of a foreign country or who have 
been recognized and authorized by the countries of their origin to practice the legal profession 
have the right to practice the profession with a Khmer lawyer and accompany/assist Khmer 
lawyers before th e courts or other institutions of the Kingdom of Cambodia. Foreign lawyers may 
not represent (stand in for) clients.  
 
ARTICLE 6:  
 
Foreign lawyers may only practice their profession in the territory of the Kingdom of Cambodia 
with authorization from the Khmer Bar Council; this authorization will depend on the sufficiency of 
qualifications of the foreign lawyer and will only be granted  when the country of origin of the 
foreign lawyer provides this same possibility to Cambodian lawyers.  
 
This authorization may be withdrawn if there is malpractice during the practice of the legal 
profession in the territory of the Kingdom of Cambodia. A Decision by the Bar Council not to 
authorize practice of the legal profession or to remove authorization shall be communicated within 
15 days to the General Prosecutor of the Appeal Court and to the concerned person. Appeal may 
be made against this Decisio n within a period of 2 months from the date this information is 
received.  
 
ARTICLE 7:  
 
Those foreign lawyers who have been authorized to practice this profession may not perform any 
activity to attract clients or do any commercial advertising.  
 
b) Decision  made by BACK  
 
Decision no. 004/BACK/16 on the Management of Practice of Legal Profession. (2016)  
 
2- Working Schedule  
 
In 2010, BAKC  had set up a Working Group within BAR framework to work out on the amendment 
of the Law on the BAR. Committee Members was replaced frequently based on the mandate of the 
Bar President (2 years' mandate) and Bar Council (3 years' mandate).  
 
The Working Gr oup not only worked on the articles 5, 6 and 7 of the Law of the BAR, but also 
considered some other articles with the objective to ensure the best practice in law profession in 
Cambodia by taking into account the international norms.  
 
During the transiti onal period, in 2016, BAKC had issued the Decision no. 004/BACK/16 on the 
Management of Practice of Legal Profession. Since then BAKC had received 7 applicants submitted 
and 3 of them was considered as they had fulfilled the criteria. However, the approval  on these 3 
applicants is postponed due to the lack of relevant law support.  
 
To avoid the frequently replacing of the committee member to amend the Law on the Bar based on 
the mandate of the Bar President (2 years' mandate) and Bar Council (3 years' manda te), BAKC 
planning to request to the Government of Cambodia to set up a Committee of relevant ministries 
in order to accelerate this amending process.  
 WT/TPR/M/364/Add.1  
 
- 47 - 
 
  Government's Report  
 
Paragraph 4.10, page 5  
 
The Report lists three international conventions in the area of intellectual property rights to which 
Cambodia has acceded during the review period.  
 
Q33: Is Cambodia also considering the possibility of acceding to the Trademark Law Treaty, the 
Berne Conv ention for the Protection of Literary and Artistic Works, the Rome Convention for the 
Protection of Performers, Producers of Phonograms and Broadcasting Organizations, the WIPO 
Copyright Treaty and the WIPO Performances and Phonograms Treaty?  
 
Answer:  
Camb odia is willing to accede to the international treaties such as Trademark Law Treaty, the 
Berne Convention for the Protection of Literary and Artistic Works, the Rome Convention for the 
Protection of Performers, Producers of Phonograms and Broadcasting Org anizations, the WIPO 
Copyright Treaty and the WIPO Performances and Phonograms Treaty in due course.  
 
Paragraph 4.15, page 6  
 
The Report states that the " draft Law on Compulsory Licensing for Public Health is designed to 
allow Cambodia to benefit fully fro m the Amendments to the TRIPS Agreement dealing with public 
health" and that the  "draft laws on undisclosed information and on the layout designs of integrated 
circuits complete Cambodia's legal requirements under TRIPS ." 
 
Q34:  Could Cambodia provide more information on the envisaged changes of these draft laws?  
 
Answer:  
1.  The draft law on compulsory licensing is being discussed by relevant ministries. Currently, 
the following issues are being dealt with the draft law:  
 Grounds f or the issue the license  
 Authorization to use a patent without the consent of the patent right holder  
 A competent authority grant the license  
 The government agency or private party can use the license ( after fulfillment of 
requirements)  
 Quantity of produc tion/ import/ export  
 Payment of Remuneration in form of royalty.  
 
2.  Scope and duration of Compulsory license:  
 the License can cover the product and process  
 Non assignable  
 Non exclusive  
 Be terminated when the circumstances which led to it cease to exist and are 
unlikely to recur.  
 
Paragraph 4.16, page 7  
 
The Report states that the " law on Patents, Utility Models and Industrial Designs adopted in 2003 
is being revised by adding new article 136 and new sub -paragraphs in the following articles: 
Article  37 (new s ub-paragraph 4), Article 38 (new sub -paragraph 2), Article 109 (new 
sub-paragraph 2 and 3) ". 
 
Q35:  Could Cambodia provide more information on these amendments and their intended effects?  
 
Answer:  
Article 37 (new sub -paragraph 4):  
The Registrar shall publish patent applications, search report and patent applications examination 
report.  
 WT/TPR/M/364/Add.1  
 
- 48 - 
 
  Article 38 (new sub -paragraph 2):  
In case of examination that the patent granted abroad benefits to Cambodia, the minister may 
validate that patent in Cambodia. The mi nister shall issue the detail necessary regulations 
concerning the implementation of patent validation.  
 
Article 38 (new sub -paragraph 2 and 3):  
Applications under the Geneva Treaty 1999 of Hague Agreement concerning the International 
Registration of Indus trial Designs designating the kingdom of Cambodia shall be considered as 
industrial applications registered under this Law with the same filling date as the international one 
provided in the Geneva Treaty 1999 of Hague Agreement concerning the Internationa l Registration 
of Industrial Designs. Minister shall issue necessary regulation on the implementation industrial 
designs recognition under this treaty.  
 
Article 136 new:   
The pharmaceutical products mentioned in Article 4 of this law shall be excluded fro m Patent 
protection until the end of transitional period adopted by the decision of TRIPs Council of WTO on 
the extension of transitional period in compliance with TRIPs Agreement in which LDCs have 
specific obligation for the pharmaceutical products.  
 
(WTO members agree to extend drug patent exemption for poorest members: Least developing 
country (LDCs) members of the WTO will be allowed to maintain maximum flexibility in their 
approach to patenting pharmaceutical products until at least 2033, following a decision taken by 
the WTO's council for Trade -Related Aspects of Intellectual Property Rights (TRIPS) on 
6 November).  
 
Paragraph 4.24, page 8  
 
The General Department of Customs and Excise (GDCE) has continued to improve and expand the 
functionality of ASYC UDA.  
 
Q36:  Could Cambodia consider adding a short description of ASYCUDA?  
 
Answer:  
Through the Trade Facilitation and Competitiveness Project (TFCP) funded by the World Bank and 
Trade Development Support Program (TDSP) Projects funded by EU, the ASYCUDA W orld System 
has been implemented at 76 customs offices capturing all import/export custom declarations. 
Several modules of ASYCUDA have been activated namely bonded warehouse, manifest, direct 
trader input (DTI), where the traders could submit declaration from their premises with Internet 
connection. In addition, to automate other customs procedures, the so -called e -Customs System 
has been developed in house. Both ASYCUDA and e -Customs systems exchange data for effective 
customs procedures and further trade  facilitation.  
 
Paragraph 4.28, page 8  
"…introduced its Best Traders Incentives Mechanism in June 2014 to provide benefits to traders 
who meet certain criteria. To date, 17 companies have qualified under the program and receive 
incentives including, among other things, receiving priority with respect to customs procedures; 
exemption from pre -verification of customs valuation and certificates of origin; …"  
 
Q37:  Would the best traders program apply to trade under all kinds of preferential regimes? (See 
also question 19 under Secretariat Report para 3.65)  
 
Answer:  
Yes, the best trader program also applies to trade under all kinds of preferential regimes.  
 
Paragrap h 4.33, page 9  
 
"In 2016, the Ministry of Commerce introduced an on -line facility designed to simplify and speed 
up its issuance of certificates of Cambodian origin. An exporter wishing to apply for certificates of 
origin on line first creates an account w ith the Ministry of Commerce. He is then able to log in to 
create individual certificates. Once logged in he chooses the type of certificate of origin he wishes 
to create, and then enters his firm's name and address and other exporter details, provides the  
information that the certificate must contain --such as marks and number of packages, the WT/TPR/M/364/Add.1  
 
- 49 - 
 
  description and HS code of the goods, and the origin criterion that is being used -- and submits the 
draft certificate electronically with at least one uploaded suppor ting document, such as a bill of 
lading or customs declaration. The submitted draft certificate is then verified by a Ministry of 
Commerce official, and if it is in order the submitting firm pays electronically all fees and charges, 
after which it may prin t out and sign the certificate of origin and submit it to the Ministry of 
Commerce for final endorsement."  
 
Q38:  Could Cambodia clarify which exporters can apply for on -line certificates?  
 
Answer:  
All exporters may apply online for certificates of origin f rom the Ministry of Commerce.  
 
Paragraph 4.34, page 9  
 
"Cambodia has taken the first steps toward a system in which exporters themselves issue their 
certificates of origin. In August 2015, Cambodia joined the ASEAN Self -Certification Pilot Project 
(SCPP1) through which Brunei Darussalam, Cambodia, Malaysia, Myanmar, Singapore and 
Thailand accept certificates of ASEAN origin produced by certified exporters in each other's 
countries. Currently, only a few Cambodian exporters and producers have been certified to issue 
their own certificates; the Ministry of Commerce is urging others to participate in the pilot project. 
Cambodia expects to participate in ASEAN Wide Self -Certification beginning in 2019."  
 
Q39:  For the sake of completeness, could Cambodia consider  to add the second phase of the pilot 
project as well and list the countries participating in that phase?  
 
Answer:  
All ASEAN member states are negotiating for the ASEAN wide self -certification by merging pilot 
project 1 and 2, considering several criteria such as definition of certified exporters, types of 
commercial documents, numbers of authorized signatories, submission and circulation of 
authorized signatories and lists of products for which certified exporters are authorized to make 
invoice declaration s, and information required to contain in the invoice declaration.  
 
Paragraph 4.45 (primary and secondary education), page 11  
 
Despite the improvement in enrolment rates, the Cambodian education system lacks efficiency and 
quality in terms of student retention and transition rates.  
 
Q40:  Could Cambodia explain how it aims to tackle this issue and reduce disparities by region and 
classes in the Cambodian education system?  
 
Answer:  
In school year 2016 -2017, the Net Enrolment Rate of primary education was 93.9%. The Gross 
Enrolment Rate of Lower Secondary Education was 53.8% and Upper Secondary Education was 
24.2%. The Transition Rate to Lower Secondary Education was 85.5% (Urban 94.1 % and Rural 
83.7%) and Transition Rate to Upper Secondary Education was 74.5% (Urban 94.6% and Rural 
68.5%).  
 
In order to improve the efficiency and quality of education, especially increase the retention and 
transition rate, Ministry of Education, Youth and Sport will:  
 
At policy level:  
 
  In collaboration with the Ministry of Health, support health screening for young children to 
detect developmental delays and disability in a timely way and provide the appropriate 
support  
  Introduce intensive support fo r quality life skills in schools at lower secondary level  
  Formulate a comprehensive learning path for formal, non -formal and vocational education 
streams with a clear accreditation system so as to provide learners, especially poor 
students, with greater flexibility and opportunities to complete basic education  
  Develop an overall framework / strategy for equity -oriented programs such as equivalency 
and accelerated learning targeting over -age, at risk or OOSC.  
  Develop carefully designed social protection program targeting over -aged boys  WT/TPR/M/364/Add.1  
 
- 50 - 
 
    As part of the ambitious teacher reform, invest in developing robust Teacher Education 
Colleges which will build a core of qualified local teachers who represent remote areas and 
have an interest in returning to their com munities to build them up  
  Ensure textbooks developed under the new curriculum framework have positive messages 
regarding girls and boys and women and men and that the hidden curriculum (the broader 
school culture) promotes gender equality  
 
At program lev el: 
 
  Scale up and institutionalize the early warning program for children who have dropped out 
of secondary school  
  Conduct a national and sustained roll out of Accelerated Learning Program at primary and 
introduce at the lower secondary level  
  Enforce t he implementation of remedial classes to support the learning of vulnerable 
students with activity -focused pedagogy  
  Accelerate the expansion of multilingual pre and primary school education in the North 
East  
  Establish a national student identification system as part of an IT based student record 
database which will maintain information on student bio -data, attendance, examination 
results and other relevant student performance information.  
  Expand the scope of inclusive education beyond formal education, to cover Non -Formal 
Education and Early Childhood Education, in order to adopt a more holistic approach to 
addressing the needs of Out Of School Children.  
 
Support to students:  
 
  Provide the scholarship to support disadvantaged student  
  Conside r scaling up the flexible learning calendar for the needs of migrant children and 
working children  
  Investigate mobile school options particularly in the North East with spare populations and 
for migrant children with relaxation of documentation required for migrant children.  
 WT/TPR/M/364/Add.1  
 
- 51 - 
 
  JAPAN  
Report by the Secretariat  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation, and requirements  
 
Paragraph 3.111, page 36  
 
Q1: Japan would like to ask Cambodia whether the introduction and the maintenance of the 
ASYCUDA is financed by government expenditure or by other means (e.g. supported by 
Multilateral Development Banks).  
 
Answer:  
From 2006 to August 2017, ASYCUDA implementat ion were funded through the Trade Facilitation 
Competitiveness Project (TFCP) and Trade Development and Support Program (TDSP) funded by 
EU and managed by the World Bank. Since September 2017, the operation and maintenance of 
the system is financed by gove rnment budget.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual Property  
Paragraph  3.140, page 66  
 
Q2: According to the report by the Secretariat, Cambodia is not a member of the Berne 
Convention. Japan would like to know if Cambodia's Copyright Law has any provisions inconsistent 
with the Berne Convention, and whether Cambodia is considering joining the Berne Convention 
and, if so, the schedule and state of play. Also, Japan would like to know whet her Cambodia is 
considering joining the International Convention for Protection of Performers, Producers of 
Phonograms and Broadcasting Organizations, WIPO Copyright Treaty and WIPO Performances and 
Phonograms Treaty and, if so, respective schedules and st ate of play.  
 
Answer:  
Cambodia is considering joining the  Berne Convention, the International Convention for Protection 
of Performers, Producers of Phonograms and Broadcasting Organizations, WIPO Copyright Treaty 
and WIPO Performances and Phonograms Treaty  in due course.  
 
Paragraph 3.148, page 66  
 
Q3: According to the report by the Secretariat, Cambodia has the procedure of custom seizure 
that is initiated by application from IPR holder or by ex -officio action. Japan would like to know 
whether Cambodia also  has the system of custom IP registration, under which IPR holder may 
register their IP in prior and registration is valid for one or more years.  
Japan would also like to know the outcome of the activities by border customs at land border.  
 
Answer:  
1.  Currently, Cambodia does not have the recordation system of IP at custom authority.  
2. DIP-MoC and Custom authority are discussing on how introduce the recordation 
system of IP at custom authority  
The table showed the outcomes taken at the internal market and border:  
 
 2011  2012  2013  2014  2015  2016  
T.V N/A 5 Unit N/A N/A N/A N/A  
V.C.R  N/A 9 Unit N/A 23 Unit N/A N/A  
CD, VCD, DVD Writer  N/A 8 Sets 1 Sets N/A N/A 15 Sets  
CD, VCD, DVD  311 Pieces  268,233 
Pieces  8,850 
Pieces  19,425 
Pieces  41,572 
Pieces  2 Cartoons  
CD Covers  N/A N/A 3000 
Pieces  N/A N/A 1 Cartoons  
Unauthorized CD  N/A N/A N/A N/A N/A 20,000 
Pieces  WT/TPR/M/364/Add.1  
 
- 52 - 
 
   2011  2012  2013  2014  2015  2016  
Phone  N/A 1 Unit  N/A N/A N/A N/A 
Laptops, Computer  N/A 2 Unit 41 Unit N/A N/A N/A 
Lamps  N/A N/A 400 Unit  N/A N/A N/A 
Watch, Clock  N/A N/A 49 Unit  N/A N/A N/A 
Cosmetics Products  
 Ingredient powder 
for cosmetics  
 Form for Cosmetics 
Purpose  
 Chemical  
 Finished products  N/A N/A  
800 kg  
 
4,100 kg  
 
738 kg  
353 kg  N/A N/A N/A 
Fake Soaps, Shampoo  105 
Bottles  N/A 6,041 
Bottles  N/A N/A N/A 
Fake Drug  170 
Cartoons  N/A 2,600 
Boxes  N/A N/A N/A 
Printer   N/A 1 Unit  N/A N/A N/A 
Bottle Capping 
Machine   N/A 1 Unit  N/A N/A N/A 
Book   N/A 26 Books  N/A N/A N/A 
Fake Wine  117 Case  N/A N/A N/A N/A N/A 
Empty Bottle (Johnnie 
Walker)  5 Case  N/A N/A N/A N/A N/A 
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.6 Distribution and e -commerce  
 
Paragraph 4.136, page 114  
 
Q4: According to the report by the Secretariat, a draft Law on E -Commerce, which consists of 11 
chapters and 58 articles, including provisions related to online signature, online payment 
transactions, online consumer protection, etc., is expected to pass the National Assembly by 2019.  
Given the current trend of digitalization, Japan is interested in efforts related to e -
commerce/digital trade in each country. Japan would like to know the details of the law including 
the objectives, scope, contents, and timing of entry into force. Also, if the bill and/or related 
documents are published, Japan would like to ask for the means to access such information, for 
example the URL of them.  
 
Answer:  
Objective: This Law establishes a legal framework to govern domestic and international electronic 
commerce. This Law has the purpose of creating legal certainty of all civil and commercial 
transactions involving electr onic communications.  
 
Scope: This Law shall apply to all civil and commercial acts, documents and transactions except for 
the following:  
 
  The creation, performance or enforcement of a power of attorney;  
  The creation or execution of a will, codicil or ot her matters relating to succession;  
  Any contract for the sale, transfer or other disposition of immovable property, or any 
interest in such immovable property;  
  The transfer of immovable property or any interest in immovable property;  
  Negotiable instrum ents; and  
  Any other exceptions as provided for by sub -decree.  
 
Content:  The Draft Law regulates:  
 E-Commerce  
 E- Signature and authentication  
 E- Government  
 E- payment  
 Online Consumer Protection  
 Online Personal Information Protection  WT/TPR/M/364/Add.1  
 
- 53 - 
 
   Intermediaries And Ele ctronic Commerce Service Providers  
 E- Evidences  
 Penalties  
 
Timing for entry into force: 2019  
 
The Draft Law is not published yet because it is under process of discussion. It has some revision 
facing during the discussions. (And the discussion is in Khmer  version)  
 WT/TPR/M/364/Add.1  
 
- 54 - 
 
  MALAYSIA  
The S ecretariat  Report  
 
Page 7  
 
11. The tariff is the main trade policy instrument, and collected customs duties are an important 
source of government revenue. Nearly all tariffs are applied on an ad valorem basis, with just 
14 tariff lines being subject to specific rates. The simple average applied MFN tariff in 2017 was 
12.3%, a slight increase from 11.7% in 2011. Average tariffs on agricultural products (14.6%) are 
higher than those on non -agricultural products (11.9%). The hi ghest ad valorem rate of 35% 
applies to finished agricultural products (processed meat, processed fruit and vegetables, and 
dairy products), finished industrial products, and petroleum products. Nearly 14% of tariff lines are 
duty-free. Cambodia has bound its entire tariff at the HS eight -digit level. The average bound tariff 
is 20.9%. The relatively small difference (8.6 percentage points) between the simple average 
applied MFN tariff and the average bound rate, and the fact that the entire tariff is bound , renders 
the import regime predictable. In 2017, the applied MFN rate exceeded the bound rate totally for 
60 lines, partially for 29 lines and possibly for 14 lines; the products affected include: machinery 
and parts, fireworks, live animals, gasoline and  diesel.  
 
Q1: Appreciate if the Cambodian Government could explain the current domestic process to rectify 
the issue, i.e. the applied rates on the 60 lines exceeded the bound rate.  
 
Answer:  
A sub -decree to adjust the duty rate is needed.  Customs is in th e process of rectifying this issue 
and is expected to finish in 2018.  
 
Q2: Could Cambodia elaborate whether the rectification will involve retro -active measures, i.e. 
drawback on paid duties of past transactions?  
 
Answer:  
It will not have retro -active effe ct. 
 
Page 44  
 
3.1.4 Other charges affecting imports  
 
3.26. In addition to the customs duties, imports are also subject to a VAT, which is applied at a flat 
rate of 10%. A special tax (excise tax) is levied on certain imports, the applicable rates are zero, 
4.35%, 5%, 10%, 15%, 20%, 25%, 30%, 45% and 50%.10 A  tax of US$0.02/litre is levied on 
gasoline imports and a tax of US$0.04/litre is levied on diesel imports (Table 3.4).  
 
Q3: Appreciate the Cambodian Government could provide further information as to whether 
collection of Additional Tax, Value Added Tax and Special Tax by the authorities are done at the 
point of importation (border tax), or separately? In addition, explanation whether the special tax 
(excise tax) levied on certain imports are also imposed on locally produced goods?  
 
Answer:  
The collection  of Additional Tax, Value Added Tax and Special tax of imported product will be 
collected by customs at the point of importation. Excise Tax is imposed on both imported goods 
and locally produced goods, however excise tax on locally produced goods will be collected by 
inland tax authority.  
 
Page 90 -91 
4.3.2 Policy and institutions  
 
4.55. In line with the NSDP 2014 -2018 (Section 2.2), the Cambodia Industrial Development Policy 
(IDP) 2015 -2025 is aimed at: transforming the industrial structure from a labour -intensive to a 
skill-driven industry by 2025 by: connecting to regional and global value chains; integrating into 
regional production networks and developing interconnected production clusters along with efforts 
to strengthen competitiveness and enhance pr oductivity of domestic industries; and moving 
toward developing a technology -driven and knowledge -based modern industry. It sets targets WT/TPR/M/364/Add.1  
 
- 55 - 
 
  including: increasing the GDP share of manufacturing to 30% by 2025; diversifying the export of 
goods by increasing the  share of non -textile exports to 15% of all exports by 2025 while still 
promoting exports of processed agricultural products to reach 12% of all exports by 2025; and 
encouraging the formal registration of 80% of small enterprises and 95% of medium enterpri ses 
and ensuring that 50% of small enterprises and 70% of medium enterprises have proper accounts 
and balance sheets.125 To attain these objectives action was, inter alia, envisaged in FDI 
promotion, SMEs strengthening and modernization, regulatory environ ment improvement (e.g. 
trade facilitation, export promotion, industrial standards and industrial property rights), and policy 
focusing on skills and human resource development, science, technology and innovation 
promotion, industrial infrastructure build u p and financing m easures. According to NSDP 
2014-2018, the priority sectors are: agro -processing and manufacturing; assembly and production 
of electric/electronic components and machinery parts; supporting -sectors to the garment industry 
and handicraft; ne w industries such as plastics, the chemical industry, and IT infrastructure and 
software development.  
 
Q4: Cambodia's export base remains narrow and reliant on low value -added garments. As this is 
already IDP's third year of implementation, could the Camb odian Government elaborate on the 
status of plan to diversify the economy? What are the priority sectors to be prioritised in the near 
future?  
 
Answer:  
Cambodia's export structure has evolved considerably since the early 1990s, from resources based 
product s to manufactured goods. Diversification is happening to some degree, notably in the last 
few years, with foreign investors establishing factories to produce products other than garments 
and famers growing crops other than rice. Furthermore, the 80% share of exports to Canada, the 
European Union, and the United States in 2011 was down from 92% only 4 years earlier. This data 
show that Cambodia is rebalancing trade toward Asia since it provides more stability for Cambodia 
if demand slumps in Canada, EU and U S markets.  
 
The economy remains heavily specialized in four pillars of garments, tourism, rice and 
construction. There is, however, evidence of some diversification in goods and production and 
exports, and some diversification in market destinations, with  increased shipments to Asian 
markets and reduced reliance on Western countries and tourist. It is apparent that there are three 
priorities that should be prioritized. First, it is tourism. Cambodia's main attraction is Angkor Wat. 
The introduction of more  direct international flights connect Siem Reap to other countries in the 
region and a dense tourism industry with hotels, restaurants, tours, cultural sites and crafts will 
bring great benefits to this sector. The Tourism Master Plan is the main example o f sector strategic 
planning. Second, it is the agricultural sector and particularly agro -industry. There is the need for 
higher value and a more diverse range of products in agriculture, focusing on increased 
processing, such as milling paddy into rice, an d raising the output of other products, including 
rubber, cashew nuts, maize, and beans. The most notable is the Policy on the Promotion of Paddy 
Production and Rice Exports, an industrial policy to promote production, processing, and export of 
rice. Third , potential of a number of emerging industries including furniture, paper, handicrafts, 
and creative industries, construction materials, household appliances and oil and gas. The study 
also envisions the government encouraging diversifications by deepening  the financial sector, 
improving public finance, promoting savings, and providing key public goods in human resource 
development and infrastructure.  
 
Under the Industrial Development Policy, Cambodia will prioritize the following sectors:  
  New industries:  electronic assembly, natural resource processing, high value -added 
garment products, industrial equipment assembly.  
  Supporting industries: SMEs supporting industry, light manufacturing, construction 
materials, food and beverage, packing equipment for exports, transport and logistics.  
  Agro-industry.  
 
 
 WT/TPR/M/364/Add.1  
 
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  THAILAND  
I. Report by Cambodia (WT/TPR/G/364)  
 
Page 8, paragraph 4.26.  
 
4 ENHANCING CAMBODIA'S COMPETITIVENESS  
4.2 Reducing the Costs of Complying with Government Regulations and Procedures  
Single Window  
 
4.26. The Cambodian National Single Window will eventually be part of the ASEAN Single Window, 
and care is being giv en to ensure that processes are harmonized and streamlined before the ICT 
component is designed. Recommendations from a 2016 needs assessment suggested that the 
development and implementation of the CNSW be carried out in three phases. Phase 1 would be 
focused on connecting the CNSW to ASYCUDA, and that part of the electronic certificates of origin 
system that pertains to ASEAN trade to the ASEAN Single Window. In 2017, Cambodia requested 
support for the installation of the ASEAN Single Window gateway and b y the end the year should 
have a routing system in place that will function as a basic NSW connected to the ASEAN Single 
Window for the limited purpose of exchanging certificates of ASEAN origin (electronic C/O Form D) 
with other Member States. This should  prepare Cambodia to engage in ASEAN's test exchange of 
ASEAN Customs Declaration Documents (ACDD) and e -phyto certificates next year. Phase 2 would 
bring about the integration of other government agencies, (e.g. licensing and permit -issuing 
agencies) to t he CNSW. Phase 3 will complete the implement the CNSW according to the NSW 
Blueprint and its supporting documents. Cambodia has notified TFA Article 10.4 Single Window as 
a Category C provision.  
 
Q1: As mentioned in page 8 paragraph 4.26., when will phase  3 of CNSW implementation be 
completed and ready to be utilized efficiently in order to increase trade facilitation among ASEAN 
members in terms of exchanging certificates of ASEAN origin (electronic C/O Form D)? Please 
identify the period of year.  
 
Answer:  
The exchanging of electronic C/O Form D is under the CNSW Development Phase 1 project, and is 
expected to launch User Acceptance Test (UAT) in December 2017 and to start the implementation 
with ASEAN Member States in early 2018. The full implementa tion of CNSW, Phase 3 of CNSW 
implementation, is expected to be completed in 2021.  
 
II. Report by the secretariat (WT/TPR/S/364)  
 
Page 14, paragraph 1.5. and 1.6.  
 
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.1 Monetary and exchange rate policies  
 
1.5. The expanding economy has also resulted in rapid credit growth. Although credit growth has 
been broad based, there is a significant concentration in the real estate sector, which has given 
rise to an asset price bubble. A large disorderly ad justment in real estate prices is likely to have an 
adverse impact on the banking sector and economic activity in general. In addition to rapid credit 
expansion, other potential risks to future growth stability stem from a significant slowdown in 
China, wh ich would potentially spill over through the FDI, banking and tourism channels. 
Additionally, according to the IMF, a surge in the US dollar and/or weaker growth in Europe could 
affect garments exports. Also, a sharper -than-anticipated tightening in global  financial conditions 
could raise funding costs and heighten liquidity risks in the financial system. Risks on the domestic 
front include fiscal pressures and erosion of competitiveness from wage hikes potentially 
outstripping productivity gains.  
 
1.6. The  authorities are cognizant of the above risks and have tried to address them. With a view 
to bolstering financial stability and ensuring a soft landing of the credit cycle, a liquidity coverage 
ratio and minimum capital requirements for banks were introduc ed in 2016 (see Section 4.5.3). 
Phase III of the Rectangular Strategy reflects the Government's aim of promoting long -term 
sustainable national development and poverty reduction through focusing on: agriculture WT/TPR/M/364/Add.1  
 
- 57 - 
 
  development (diversification, value added, an d productivity); development of physical 
infrastructure; private sector development and employment; and capacity building and human 
resource development (see Section 2.3).  
 
Q2: Please provide more details on how the government plan to prevent Cambodia fro m facing the 
asset price bubble in real estate sector under the Phase III of the Rectangular Strategy?  
 
Answer:  
Under the Phase III of the Rectangular Strategy, the Government of the Kingdom of Cambodia 
plans to implement many measures in order to achieve a sound and market -based banking and 
financial sector aimed at strengthening its role in driving development and economic diversification 
through financial resource mobilization to meet increasing financial needs. As the economy 
expanded rapidly, there is a concern over rapid growth of credit, especially in the real estate 
sector, which could increase the risk of an asset price bubble.  
 
The following are government's interventions to prevent Cambodia from facing the asset price 
bubble in the real estate se ctor: 
 
1. Fiscal controls during project development:  The Prakas No. 965, issued by the Ministry 
of Economy and Finance in August 2016, includes a number of revisions and clarifications 
relating to the licensing regime and reporting obligations of development  projects intended 
for residential use. The Prakas also sets the minimum capital requirement for such projects 
at least 2 billion KHR (approximately 500,000 USD), and provides more specific regulations 
on phases of development and commencement of sales.  
2. Strengthening ownership titles:  The Ministry of Economy and Finance and Urban 
Planning has taken measures towards stronger implementation of existing laws, particularly 
with regard to the registration of soft titles. This further emphasizes the importance of  
having legally compliant and formalized processes in place for the registration of all forms of 
property ownership in Cambodia.  
3. Registration tax at rates of 4% on transfer of ownership of real property  or transfer 
of occupancy right of land without buildi ng in the form of sales, exchange, receiving gift, 
putting capital in company. This measure is aimed at slowing down economic activities in 
real estate sector, while at the same time expanding a source of fiscal revenue.  
4. Macro prudential measures:  
 
 Expansion of reserve requirement to banks' foreign borrowing in March 2015 . 
The new regulation aims at managing and mitigating risks to financial stability by 
imposing 12.5 percent reserve requirement on banks' foreign borrowing.  
 Minimum registered capital  of banking and financial institutions in March 2016 . 
The Prakas aims to strengthen the capital base of banking and financial institutions by 
imposing the following requirements:  
 
 Commercial bank incorporates as foreign, whose parent bank is rated "investm ent 
grade" shall have a minimum registered capital of at least 200,000,000,000 (two 
hundred billion riel), increase by 300% compare to the previous requirement.  
 Local commercial bank shall have a minimum registered capital of at least 
300,000,000,000 (thre e hundred billion riel), increase by 100% compare to the 
previous requirement.  
 Specialize bank shall have a minimum registered capital of at least 60,000,000,000 
(sixty billion riel), increase by 100% compare to the previous requirement.  
 
 Deposit taking MF Is (MDIs) shall have a minimum registered capital of at least 
120,000,000,000 (one hundred twenty billion riel), increase by 1,100% compare to 
the previous requirement.  
 MFIs shall have a minimum registered capital of at least 6,000,000,000 (six billion 
riel), increase by 2,300% compare to the previous requirement.  
 
 Liquidity Coverage Ratio in December 2015 . The policy aims to: 1.) Promote short -
term resilience of each institution's liquidity risk profile, 2.) Ensuring that each institution 
has an adequate stock of unencumbered liquid assets that can be converted into cash at 
no or little loss of value in markets to meet its liquidity needs for a 30 days liquidity 
stress scenario;3.) Ensure that prompt corrective action is taken by the institution's WT/TPR/M/364/Add.1  
 
- 58 - 
 
  manageme nt when the LCR potentially fall below the minimum requirement, 4.) From 
September 2016 on, the minimum LCR will be required to be bigger than 60%.  
 
 The way forward  
 
 Royal Government of Cambodia clearly understood the risk in real estate sector and so far  
has implemented many measures and regulations to curb credit growth and mitigate risk 
in this sector. However, the government also understands the importance of the real 
estate sector, in contributing to the whole economy and does not want to abruptly dis rupt 
credit growth of this sector. Therefore, the government has implemented the policy aimed 
at allowing credit growth to land softly such that the economy has time for self -
adjustments.  
 Looking forward, the government will continue to closely look at the  real estate sector, 
improve data availability and communication amongst stakeholders, and intervene in this 
sector, if necessary, to achieve a sound and market -based financial sector in line with the 
Phase III rectangular strategy.  
 
Page 77, paragraph 4.1 5. 
 
4 TRADE POLICY BY SECTOR  
4.1 Agriculture  
4.1.4 Domestic support measures  
 
4.15. Under the September 2012 Sub -decree on the Establishment of Cambodia Food Reserve 
System (CFRS), a public food (10,000 tonnes of rice by GTC, 6,000 tonnes of rice by MEF), seed 
(up to 3,000 tonnes of rice) and vegetable seed (50 tonnes) stock covers the immediate food 
needs of 10% of the population in disasters and emergency situat ions; the authorities provide 
3 million riel for paddy -rice purchases per year and stocks may b e distributed for free or at 
discounted prices (e.g. 50% of the market price for seeds).27 According to the authorities, in 2015 
CFRS support stood at US$2.8 million. Since 2017, pork and chicken meat, fish, rice and cassava 
have been subject to price moni toring (Section 3.3.4). In the context of the regional cooperation 
framework, since 2012 the National Committee for Disaster Management (NCDM) has 
implemented the agreement on the establishment of ASEAN Coordinating Centre for Humanitarian 
Assistance on Di saster Management (AHA Centre) by contributing US$30,000 per year to the AHA 
Centre Fund.  
 
Q3: Are there any criteria for the release of the paddy -rice stock?  
 
Answer:  
The release of the paddy -rice stock is based on the decision made by the committee on Ca mbodia 
Food Reserve System and the National Committee for Disaster Management (NCDM) when there 
are natural disasters and emergency needs of food.  
 
Page 90, paragraph 4.54.  
 
4 TRADE POLICY BY SECTOR  
4.3 Manufacturing  
4.3.1 Feature, policy and measures  
 
4.54. Manufacturing remains a priority activity in terms of its contribution to the economy, 
employment and merchandise exports. Its share in gross value added increased from 15.2% in 
2011 to 16.1% in 2016 (Table 1.2); similarly, according to data from the au thorities, the share of 
manufacturing in total employment increased from 16.9% in 2011 to 25.5% in 2015. About 50% 
of the workers are employed in the garment segment, 25% in construction, close to 10% in the 
food/beverage processing segment and 13% in othe r manufacturing segments. The sector's 
narrow industrial base remains based on a simple structure of manufacturing concentrated on 
garments and food processing. The number of informal enterprises remains relatively high. More 
than 63% of large manufacturin g enterprises are foreign investment and export -oriented. The 
sector operates mostly by assembling imported components and parts into finished products. No 
labour or total factor productivity growth indicators for manufacturing (except for garment) were 
available from the authorities. Exports of manufactured products dropped slightly from 93.5% of WT/TPR/M/364/Add.1  
 
- 59 - 
 
  total merchandise exports in 2011 to 92.6% in 2015 (Table A1.1); they remain heavily dependent 
on clothing whose share in total exports rose from 59.6% to 69.5% o ver the same period.  
 
Q4: According to page 90, paragraph 4.54., as this refers to "informal enterprises" and this 
document does not contain a description for "informal enterprises", please elaborate how "informal 
enterprises" are defined.  
 
Answer:  
In Cambodia, the informal economy is defined as actions without official or solid legal status, 
regulation or protection by state institutions, or as actions that are identified with some of the 
following characteristics: No firm or postal address; Employe es are self -employed; No data 
through census survey are available or the activities are not recognized; Labor -intensive nature of 
operations and quick turnover; Non -structured premises without regulations, licenses, insurance, 
or taxes etc.  
 
Under unregist ered form, these enterprises cannot be followed up by any bureau of standards or 
regulations, and cannot receive any supports or advantages from the government policy. 
Therefore, their risks cannot be reported to any legal authorities for effective solutio ns. For 
instance, some health hazardous enterprises such as fish vendors, without even a fridge to store 
the chemical substance for preserving fish to sell in the market, make the fish not fit and good for 
human consumption and health. Moreover, these ente rprises also result from the lack of financial 
means, management, and technological skills to expand their business activities, making them 
become fragile and easily fail, comparing to formal enterprises. Besides, owners of informal 
enterprises are not acc ount holders of any commercial banks and they do not pay any form of 
taxes to contribute to country economy.  
 
Q5: As Cambodia government recognized that the number of informal enterprises remains 
relatively high, does Cambodia government have policy or any  plan to launch measures to reduce 
the number of informal enterprises or encourage them to register with the authorized agency to be 
formal enterprises?  
 
Answer:  
There are couple policies and actions which the government have been introduced to transform 
informal enterprises in Cambodia:  
 
 There is a tendency to reduce administrative burden on SMEs, which including informal 
enterprises to register in government sys tem which including one -stop shop services for 
registration etc.  
 
 There also recently the sub -degree on New Tax Incentives for SMEs Voluntarily Registering 
for Tax with the benefit as following:  
 
o SMEs that voluntarily register with the General Department  of Taxation ("GDT") in 2017 
and 2018 may claim a two -year exemption from Tax on Profit ("TOP Exemption 
Period"). The TOP Exemption Period will commence from the year in which the SME first 
generates revenue, or from the year of tax registration should the  SME be in the 
position that they have earned revenue prior to the date of tax registration – whichever 
comes first; and  
 
o During the TOP Exemption Period, SMEs will also be exempted from the annual 1% 
Minimum Tax and its associated monthly pre -payments – otherwise known as Pre -
payment of Tax on Profit.  
 
Page 114, paragraph 4.134.  
 
4 TRADE POLICY BY SECTOR  
4.4 Services  
4.4.6 Distribution and e -commerce  
4.4.6.1 Distribution  
 
4.134. Foreign commercial presence in distribution is unlimited. Local and foreign firms are 
required to register with the MoC at least 15 days prior to the commencement of business WT/TPR/M/364/Add.1  
 
- 60 - 
 
  activities to obtain a business licence. Registration at MoC can be done v ia an online platform. 
Additional operating licences can be required.  
 
Q6: According to page 114, paragraph 4.134., foreign commercial presence in distribution is 
unlimited, however, at the end of this part, it is indicated that additional operating licen ces can be 
required. What are these additional operating licences, and their criteria in order to obtain these 
additional operating licences?  
 
Answer:  
In general, after registration with MOC, local and foreign firms can start their operation 
accordingly. I n case the company business objective is subjected to obtain specific license; they 
shall apply for those license to the competent institutions. The criteria for obtaining additional 
license are differed from competence institutions to another. For instanc e, if the company business 
objective is tourist agency, the company have to apply for the additional operation license from 
Ministry of Tourism.  
 
Q7: Which agency is responsible for these additional operating licences?  
 
Answer:  
In general, after registrati on with MOC, local and foreign firms can start their operation 
accordingly. In case the company business objective is subjected to obtain specific license; they 
shall apply for those license to the competent institutions. The criteria for obtaining additio nal 
license are differed from competence institutions to another. For instance, if the company business 
objective is tourist agency, the company have to apply for the additional operation license from 
Ministry of Tourism.  
 
Page 117, paragraph 4.145.  
 
4 TRA DE POLICY BY SECTOR  
4.4 Services  
4.4.8 Professional services  
4.4.8.1 Accounting, consulting and tax services  
 
4.145. A number of foreign firms provide accounting, consulting and tax services in Cambodia. No 
data on domestic and foreign accountants, or accounting/audit firms operating in Cambodia were 
available from the authorities.  
 
Q8: According to page 117, paragraph 4.145 ., does the Cambodian government have any plan to 
task concerned authorities to gather the official data of domestic and foreign firms providing 
accounting, consulting and tax services in Cambodia  and reveal such data to the public in the near 
future?  
 
Answer:  
Yes 
 
Page 117, paragraph 4.146.  
 
4 TRADE POLICY BY SECTOR  
4.4 Services  
4.4.8 Professional services  
4.4.8.1 Accounting, consulting and tax services  
 
4.146. The main legal framework of the activity remains unchange d. It comprises the 2002 Law on 
Corporate Accounts, Their Audit and The Accounting Profession which is to be amended to 
introduce simplified accounting standards for SMEs, and the Code of Ethics of Cambodian 
Accountants  
 
Q9: According to page 117, paragrap h 4.146., when exactly will the 2002 Law on Corporate 
Accounts and the Audit and the Accounting Profession be amended and approved, and when will 
the law enter into force?  
 WT/TPR/M/364/Add.1  
 
- 61 - 
 
  Answer:  
Law on Corporate Accounts and the Audit and the Accounting Profession, 2002, was amended by 
Law on Accounting and Auditing, which was approved and come to effect through Royal Decree 
No. NS/RD/0416/006 on 11 April 2016. This new law is intended to set the legal framework for 
regulating the accounting and auditing, promulgatin g the accounting standards, standards on 
auditing and a code of ethics for accountants and auditors.  
 
This is under the authority of National Accounting Council, MEF.  
 
Please refer to link new law: (KH & EN) http://naccambodia.gov.kh/lawandregulation/page/3  
 
Page 117, paragraph 4.148.  
 
4 TRADE POLICY BY SECTOR  
4.4 Services  
4.4.8 Professional services  
4.4.8.1 Accounting, consulting and tax services  
 
4.148. A professional can be called a "Cambodian Accountant" only upon becoming a CPA member. 
To practice as a professional accountant or auditor, a professional licence is required from the 
NAC: a licence for accounting services or a licence for auditing services. All the conditions, 
legislative measures and procedures for providing licences are determined by the NAC.310 No 
information on requirements for a foreigner to become an accountant in Cambodia or validation of 
foreign diplomas/certificates in this  area was available from the authorities.  
 
Q10: According to page 117, paragraph 4.148 , please provide the information on the 
requirements for a foreigner to become an accountant in Cambodia or validation of foreign 
diplomas/certificates.  
 
Answer:  
1.  Completed application form  
2.  CPA/ACCA/CA (Certified true copy of membership certificate)  
3.  Practicing certificate from your institute, for instance ACCA  
4.  Experience at least 3 years in accounting or/ and auditing areas with registered accounting 
or/and audit ing firm  
5.  Good standing letter from your institute (direct email from your institute to KICPAA)  
6.  Work permit from Ministry of Labour and Vocational Training (for foreign only)  
7.  Detailed C.V with supported documents; for instance, employment letter from you r 
companies  
8.  Identification card or passport (copy)  
9.  One photo (size 4 x 6)  
10. Paid application  form fee to KICPAA Secretariat after all required documents are in place.  
 WT/TPR/M/364/Add.1  
 
- 62 - 
 
  AUSTRALIA  
Report by the Secretariat (WT/TPR/S/362)  
 
3 Trade Policies and Practices by  Measure  
3.2 Measures Directly Affecting Production and Trade  
3.2.7 Intellectual property rights  
 
Page 66, Paragrraph 3.123  
Australia commends Cambodia on its work towards acceding to a number of intellectual property 
treaties. The report outlines that Cambodia has arrangements in place with the World Intellectual 
Property Organization for technical assistance to help work towa rds accession to a number of 
WIPO treaties.  
 
Q.1: Can Cambodia provide an update on any planned accession to additional WIPO treaties, for 
example, the Berne Convention for the Protection of Literary and Artistic works or the WIPO 
Copyright Treaty?  
 
Answe r: 
Cambodia is willing to accede to the international treaties such as Bern Convention and WIPO 
Copyright Treaty. However, Cambodia will use the transitional period given to LDCs by TRIPS 
Council to build institutional capacity, human resources, and prepar ation of technical regulations.  
  
The provisions of any international treaties in respect of Law on Copyright and Related Rights, to 
which the Kingdom of Cambodia is a party, shall apply to matters dealt with by Cambodia 
Copyright Law. In case of conflict with the provisions of this Law, the provisions of those already -
ratified international treaties shall prevail (Art. 67).  
 
3 Trade Policies and Practices by Measure  
4.4 Services  
4.4.3 Financial Services  
  
Page 94 -95, Paragraph 4.67 and 4.68  
The report identifies the Financial Sector Development Strategy (FSDS) as the key strategy 
implemented (and updated) by the Cambodian Government during the period under review which 
aims, inter alia, to achieve a sound, efficient, diversified and inclusive market -based financial 
system that can fulfil domestic demand for financial services and is able to effectively support 
sustainable economic growth, raise incomes, reduce poverty, and align with regional economic and 
financial integration. The latest FSDS (2016 – 2025) aims to build capacity for supervision and 
surveillance, combatting money laundering and the financing of terrorism, promoting leasing, and 
improving corporate governance.  
 
Q2: Which financial services sectors are being targeted in Cambodia's current FSDS efforts?  
 
Answer:  
The banking sector has quite developed. So the next step, FSDS would enhance the quality of 
financial inclusion (credits, deposits and payment system), further developed financial 
infrastructure and promote financial stability. At th e same time, FSDS efforts would develop the 
securities market and insurance service.  
 
"Financial Sector Development Strategy 2016 – 2025" covers broadly on financial sector by 
highlighting background, progress, and challenges, as well as laying out strateg ies and future 
policy actions for the development of financial sector both in the banking sector and non -banking 
sector with supporting infrastructures and capacity building. This development strategy will serve 
as the updated guidance for financial develo pment in Cambodia through diversifying financial 
services and products, strengthening efficiency and security, as well as enhancing regional 
integration.  
 
Q3: Given the comparative strength and growth demonstrated by the banking sector, does the 
FSDS  (2016 – 2025) address the infrastructure challenges identified  later in the report 
(paragraph  4.68) as being a key hindrance to the expansion of the banking sector?  
 WT/TPR/M/364/Add.1  
 
- 63 - 
 
  Answer:  
Growth in banking sector has promoted financial deepening and financial inclusion . The FSDS has 
laid out policies to develop financial infrastructure, especially payment system. In line with FSDS, 
the NBC has 1 - launched the fast payment that allows the beneficiaries to receive the funds 
immediately after the payment has been made, and  2-launched Cambodian shared switch system 
that allows customers of one bank to withdraw money and conduct other operations with the ATM 
of another banks. For the future policies, the NBC would develop a Real Time Gross Settle System 
(RTGS) to facilitate t he gross payment that are now increasingly important.  
 
3 Trade Policies and Practices by Measure  
4.4 Services  
4.4.4. Communications  
4.4.4.1 Telecommunications  
 
Page 105, Paragraph 4.101  
The report states no regulation on number portability exists at present, but regulation on the 
national numbering plan was envisage although has not occurred due to technical constraints.  
 
Q4: Could Cambodia provide an update on future regulation relating to the national numbering 
plan and the likelihood of implementin g number portability?  
 
3 Trade Policies and Practices by Measure  
 
Answer:  
Currently Cambodia is using open numbering scheme. The both fixed and mobile numbers start 
with an initial digit 0. The format of a mobile number is 0MN AXX XXX or 0MN AXXX XXX where  MN 
is a two digit number to identify an operator, A is a digit between 2 and 9, and X is a digit between 
0 and 9. The format of fixed -phone number is 0AB NXX XXX or 0AB NXXX XXX where AB is an area 
code, N is a digit between 2 and 9 to identify a telephon e station or network operator, and X is a 
digit between 0 and 9.  
 
Cambodia is considering replacing the open numbering scheme with a close numbering scheme in 
which the initial digit 0 is omitted and the number will be a 9 -digit number. The new format of a  
mobile number would be MN AXXX XXX where MN is a national destination number and AXXX XXX 
is a subscriber number. The new format of fixed -phone number would be AB NXXX XXX. However, 
the new numbering plan is still under a study and there is no decision on  it yet. For the 
implementation of number portability, we need to carefully study the best practices, and its 
benefits and challenges with proper consultations with all telecommunication stakeholders.  
 
4.4 Services  
4.4.7 Tourism  
 
Page 115 -16, Paragraph 4.138  
The report states that there was a decline in the average length of stay of tourist in Cambodia, 
which has impacted a sector which remains Cambodia's largest single activity and source of 
government revenue as well as a cross -industry backbone that i s interlined and a stimulus to 
almost all other activities of the economy. The report states that tourism was 'set to bounce back' 
in 2016, and that a master plan was approved by the Council of Ministers in 2016 following 
Cambodia's official confirmation a s a host for the 32nd Southeast Asian Games. The organisational 
cost of the games is reported as being US$40 million, with additional costs to be incurred in 
logistics, human resources, transport and other strategic areas, including the development of 
tourism infrastructure.  
 
Q5: Given the close links between tourism and a large number of other sectors of Cambodia's 
economy, what measures are currently in place or are proposed to encourage a growth in tourism 
rates, and develop tourism infrastructure, in th e lead up to the 32nd Southeast Asian Games and 
beyond?  
 
Answer:  
Given the close links between tourism and a large number of other sectors of Cambodia's 
economy:  
*measures are currently in place or are proposed to encourage a growth in tourism rates:  WT/TPR/M/364/Add.1  
 
- 64 - 
 
  - implement the government policies on tourism development.  
- work closely with the economic sectors to grow all across the industry.  
- Induce products and spending in the country with focusing on quality and tourist 
satisfaction.  
*develop tourism infrastructur e, in the lead up to the 32nd Southeast Asian Games and beyond:  
- hotels, resorts  
- restaurants  
- entertainment day and night, and related facilities with better services  
 
Report by Government Report (WT/TPR/G/364)  
 
4. Enhancing Cambodia's Competitiveness  
 
Page 5, Paragraph 4.5  
The report states that the Royal Government and its ministries have elaborated a multi -layered 
strategic approach to improve the underlying competitiveness across a range of Cambodia's 
economic sectors. These include the Education St rategic Plan (2014 – 2018), the Financial Sector 
Development Strategy (2011 – 2020), and the Tourism Development Strategic plan (2012 – 
2020), among others.  
 
Q6: Could Cambodia provide an update on the strategic plans listed above, including what 
measures have been implemented and the outcomes of these strategies?  
 
Answer:  
Cambodia has been quite successful in integrating the global economy through trade and 
investment. Progress since the mid -2000s is significant. But world markets are ever changing with 
new competitors continuously emerging to challenge Cambodia's export sectors. The challenge for 
the country and its leading export sectors is to respond to change by strengthening the 
competitiveness of established sectors while nurturing new ones.  
 
For Ca mbodia, export competitiveness has been identified as one area for improvement. It is 
grouped into four subsets:  
 
  Improved market access: diversify markets and export products have been largely 
successful with increased export to more Asian markets such a s China, Japan and South 
Korea although the EU and the US remained as the main export markets.  
  Strengthened domestic business environment: reduce costs for exports and imports. 
Cambodia plans completion of the establishment of a National Single Window by 2018 
which should help lower those two key metrics. Effectiveness of transport logistics in 
Cambodia remained a challenge.  
  Rising total factor and labor productivity: improve TVET and link skills to the market will be 
key to move Cambodia's industry to a  new level.  
  Increasing domestic value added : reduce export of raw material and attract more 
investment for processing plants.  
 
The implementation of Education Strategic Plan 2014 -2018 represented an important step by the 
Ministry of Education, Youth and Sport in the implementation of education, youth and sport 
reforms in Cambodia, aligned with other reforms of the Royal Government  of Cambodia in the fifth 
mandate. The important policies and strategies of the Nation Development Strategic Plan 
2014-2018 were reflected in the Education Strategic Plan 2014 -2018. Significant progress has 
shown in providing equitable access to education at all levels, implementing specific measures to 
strengthen quality and responsiveness of education services, and promoting the efficiency and 
effectiveness in education services management.  
 
The plan realigns the program/sub -program, indicators and targe ts with newly emerged or 
articulated priorities, notably the teachers, curriculum, personnel, policy and planning reforms 
(such as Decentralization & De -concentration).  
 WT/TPR/M/364/Add.1  
 
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  4. Enhancing Cambodia's Competitiveness  
 
Page 6, Paragraph 4.11  
 
The report lists laws  currently under development, which are aimed at increasing levels of 
competitiveness, and completing and improving the legal and regulatory regime in Cambodia.  
 
Q7: Could Cambodia provide some further information on the proposed Law on eCommerce, 
includi ng what issues Cambodia envisages the proposed Law on eCommerce will address, and 
what the proposed law is aiming to achieve?  
 
Answer:  
The Draft Law regulates:  
  E-Commerce  
  E- Signature and authentication  
  E- Government  
  E- payment  
  Online Consumer Protection  
  Online Personal Information Protection  
  Intermediaries And Electronic Commerce Service Providers  
  E- Evidences  
  Penalties  
 
Timing for entry into force: 2019  
 
Q8: How, if at all, will the proposed Law on Trade Secrets and Undisclosed Informatio n impact 
ongoing trade negotiations?  
 
Answer:  
Laws on Trade Secrets and Undisclosed Information are being drafted with the assistance from 
WIPO and other Development Partners. It is a routine that before sending IP draft law to the 
Council of Ministers for  getting approval, we always send the IP draft laws to WIPO and relevant 
UN Organizations for amendment and/or suggestion to fit with TRIPS Agreement and our 
commitments. Therefore, the proposed laws will not impact ongoing trade negotiations.  
 
4 Enhancing  Cambodia's Competitiveness  
4.3 Improving the Quality of the Labour Force  
 
Page 11, Paragraph 4.43 – 4.46 
 
The report details the steps that Cambodia has taken to improve the quality of its labour force, 
particularly through implementing changes to its education sector (see paragraphs 4.45 and 4.46 
for lists of changes).  
 
Q9: Are there any measures currently in place that might impact or limit the ability of foreign 
education service providers to access the Cambodian market and how, if at all, are these measures 
designed to support Cambodia's competitiveness agenda?  
 
Answer:  
According to the Law on Education (2017), there is no measures that might impact or limit the 
ability of foreign education service providers to access the Cambodian market. The Foreign Service 
providers must follow the other Government Regulations and Procedures.  
 
5 Trade, Development, and Development Partners  
 
Page 15, Paragraph 5.2  
 
The report states that the Department for International Cooperation of the Ministry of Commerce 
(DICO) recently produced an assessment of the trade areas in which additional support would be 
required during 2016 – 2020. The report indicates this support will be provided through 
international development partners, and will be managed internally by the  Sub-steering 
Committee on Trade Development and Trade -Related Investment.  WT/TPR/M/364/Add.1  
 
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Q10:  Which areas of Cambodia's economy were identified in the DICO report as needing additional 
support during 2016 – 2020 and how does Cambodia plan to encourage further trade -related 
investment during the period under review?  
 
Answer:  
The main aim of the Medium Term Plan (2016 -2020) was to identify the priority clusters of trade -
related issues that require interventions and to leverage funding support from the development 
partners . The medium term plan was a companion study to the CTIS 2014 -2018 and used much of 
the finding from the CTIS document. The MTP has been disseminated and circulated among the 
development partners. In addition, a funding pledging roundtable was also conduct ed to attract 
development partners' support for the identified clusters. IFAD is currently supporting with their 
Value Chain project called Accelerating Inclusive Markets for Smallholders being under 
implementation. The EU has also pledge to support Cambod ia's trade development with a project 
that is scheduled to begin in 2018.  
 
For trade -related investment, the MTP will provide for a better enabling environment for 
investment, especially if challenges identified in those clusters could be achieved.  
 
In terms of the 10 clusters, they are as follow:  
 
1.  Trade Policy, Sector Policy, Legal and Regulatory Reform  
2.  SPS and Other Quality Systems for Trade  
3.  Rural Development for Exports including Extension Services, Cooperatives Development, 
Surveillance Services  
4.  Trade Facilitation and Transport Logistics  
5.  Investment Environment, Integration in Regional Value Chains, Backward Linkages  
6.  Private Sector Structuring: Associations, Sector Branding, Export Promotion  
7.  Skills for Exports  
8.  Development of Inclusive Value Cha ins 
9.  Access to Finance  
10. Trade Mainstreaming and Management of Aid for Trade  
 
 WT/TPR/M/364/Add.1  
 
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  REPUBLIC OF KOREA  
Secretariat Report  
 
Page16 (1.2.3.4 Tax Reform) and Page 54(3.6.8 tax incentives)  
 
Ministry of Economy and Finance had introduced the temporary prepayment tax for 4 years with 
Prakas 998 on 23 November  2011 and extended it with Prakas 1818 on 25 December  2015 to the 
end of 2017.  
 
QIP companies, listed companies and garment & textile comp anies are exempted for some period 
from the tax. As most of manufacturers in the country are doing business with export toll process 
contract so the tax system on turnover seems to impose an heavy burdens to existed investor and 
to impact more investment t o induce in the manufacturing sector, with which the country wants to 
diversify the industry to regional and global value chain.  
 
Q1: Could Cambodia please explain on the prepayment tax that was temporarily levied and 
extended for the last six years? Please provide concrete information on the prepayment tax 
including industries that are exempted, exemption period, impact on industries, etc.  
 
Answer:  
  An enterprise liable to the tax on profit according to the real regime system of taxation 
including a qualified investment project liable to the tax on profit at the rate of 9 percent, 
has the obligation to pay a monthly prepayment of tax o n profit at the rate of 1 percent of 
turnover inclusive of all taxes, except Value Added Tax, realized in the previous month. 
The prepayment will be deducted from the tax on profit at the annual liquidation of the 
tax. 
 
  The Ministry of Economy and Finance  issued a Prakas no. 1818 MEF.Prk dated 
25 December 2015 on the extension of suspension of Pre -Payment of Profit Tax for 
Enterprises in the Garment and Footwear Industries. The objective of this Prakas is to 
extend the suspension period of payment of the m onthly 1% PPT for garment and 
footwear production enterprises until the end of 2017. This is further to the Prakas 998, 
dated November 2011, that extended the validation until the end of 2015. This would help 
garment and footwear production enterprises in term of their cash flow management as 
they are not required to pay PPT on a monthly basis and then sent off with their annual 
TOP payable if any.  
 
To extend the suspension, the enterprises shall comply with the conditions as follows:  
1.  Enterprises shall pr operly keep accounting records, declare Tax on Profit (ToP) and comply 
with other tax obligations;  
2.  Enterprises shall submit an independent audit report to the tax administration annually.  
 
The General Department of Taxation has the right to invalidate this temporary suspension and 
impose other penalties if enterprises fail to comply with the above conditions.  
 
Recently, the Ministry of Economy and Finance No. 1130 MEF.Prk dated 27 October 2 017 to 
extend the temporary period of suspension of Pre -Payment of Profit Tax for Enterprises in the 
garment industry (textile, footwear, handbags, and wallet and hats industries) that receive the QIP 
status until the end of 2022.  
 
To extend the suspensio n, the enterprises shall comply with the conditions as follows:  
1.  Enterprises shall keep proper accounting records in compliance with law and regulat ions on 
taxation and accounting;   
2.  Enterprises shall declare Tax on Profit (ToP) and timely comply with othe r tax obligations . 
Enterprises shall submit an independent audit report to the tax administration annually.  WT/TPR/M/364/Add.1  
 
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  FOLLOW -UP QUESTIONS  FROM CHINA  
The Secretariat Report  
 
Page 7, summary 10  
 
"Cambodia remains largely open to and encourages foreign direct investment (FDI) despite the 
prohibition of foreign ownership of land and involvement in some activities for health or 
environmental purposes, as well as local equity or workforce participation requirements, or prior 
authorization for certain activities (e .g. certain telecommunications services, radio and television 
broadcasting, and certain tourism services). In other activities, it continues to ensure national 
treatment and 100% foreign ownership, except for divested state enterprises; emphasis was put 
on public -private partnerships as from 2016. A 2012 moratorium on Economic Land Concessions 
(ELCs) allowing long -term leases of state -owned land was reviewed reducing their term and 
cancelling some of them. During the review period, Cambodia signed three new  bilateral 
investment promotion and protection agreements and its first double taxation agreements. " 
 
Q1: We would appreciate it if Cambodia could elaborate on the specific contents of Cambodia 's 
prohibition of FDI 's involvement in activities for environme ntal or health purposes.  
 
Answer:   
In respect to investment activities for environmental or health purposes, according to the Law on 
the Controlling of Drugs (1997) Article 1, Article 2, Article 3 and A rticle 4 and the Annex I of 
Sub-Decree No 111 ANK/BK dated September 27, 2005 on the Implementation of the Law on the 
Amendment to the Law on Investment of the Kingdom of Cambodia, the investment activities 
prohibited for purpose of health are:  
1. The manufacturing of narcotic and psychotropic substances of Table I (plants and substances 
which cause severe dangers but which are not useful for the medicine) is prohibited in the 
Kingdom of Cambodia, for both local and foreign investors.  
2. The manufacturing of finished products of Table II (Plants and substances which cause serious 
danger, but which are useful for the medicine) and III (Plants and substances which cause danger, 
but which are useful for the medicine) is only permitted according to the needs and planning of the 
Ministry of Health of Cambo dia. 
  
These activities are consistency with the schedule of the 1961 Single Convention on Narcotic Drugs 
and the 1971 Convention on Psychotropic Substances. The activities abovementioned are 
prohibited for all investors (both of national and foreign inves tors).  
 
Page 10, para 31 & page 46, para 3.32  
 
Q2: Does the foreign investment in health services include investment in the traditional Chinese 
medicine industry? What requirements need to be met for traditional Chinese medicine industry 
investment? What a re the requirements and procedures for the registration and practice of foreign 
traditional Chinese medicine doctors in Cambodia?  
 
Answer:   
1. The sub decree on "Production, Import -Export and Trade of Traditional Medicines for the 
Health Sector" determines  that:  
o The Ministry of Health may authorize foreign traditional medicine practitioners to 
practice traditional medicine profession in the Kingdom of Cambodia if it sees the 
necessary needs in the society.  
o Production of traditional medicine  in the industr ial form (by both, Cambodian or 
foreign investor )  shall be:  
  Carried out within a pharmaceutical establishment with proper organization in 
accordance with the technical conditions defined by a Regulation  of the 
Ministry of Health, and  
  Under the inspection and responsibility of one or more Cambodian pharmacists 
according to the scale of production.  
2. The requirements and procedures for the registration and practice of foreign traditional 
Chinese medicine doctors in Cambodia must be referred to th e "Sub Decree on Procedures 
and Conditions Authorizing Medical, Paramedical, and Medical Aids Foreigners to Perform 
Private Professional Practices in the Kingdom of Cambodia". Of this, the specific articles WT/TPR/M/364/Add.1  
 
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  areas:  
o Article 2:   
[Medical, Paramedical, and Medical Aids foreigners performing their private 
professional practices in the Kingdom of Cambodia can be authorized only when they 
open or practice their professions in the form of CLINIC. Those foreigners shall meet 
and adhere to the following criteria a nd conditions:  
  having experiences in health  profession at least 5 years  
  having a valid registration with the health professional council of the country 
he/she belongs or been recognized by Ministry of Health or embassy of that 
concerned country,  
  having  diploma of high professional expertise recognized by the competent 
institution of that country,  
  having registered with the Health Professional Council of the Kingdom of 
Cambodia and other criteria listed in the Sub -Decree.  
 
Q3: Does the importation of tr aditional Chinese medicine materials need the import licenses for 
pharmaceuticals issued by the Ministry of Health? Does the importation of traditional Chinese 
medicine decoction pieces need the import licenses for pharmaceuticals issued by the Ministry of  
Health? Does the importation of Chinese patent medicine need the import licenses for 
pharmaceuticals issued by the Ministry of Health?  
 
Answer:   
The Ministry of Health determine the unique definition of all kinds of Traditional Medicine in the 
legislation  as follow:  
Traditional Medicines are nutrients used to prevent or cure human and animal diseases, 
including:  
o Plant or animal or mineral that is unprocessed in accordance with an ordinary method;  
o A product that is mixed or produced by a single or several t ypes of nutrients with 
uncertain chemical structure and is originated from plant, animal or mineral.  
 
Traditional medicines that can be produced, IMPORTED, or exported shall have permits or 
registrations (LICENCE) approved by the Ministry of Health.  
- All ty pe of overseas -imported traditional medicines cannot be sold in the country 
unless the medicines have been registered and approved by the Ministry of Health.  
 
YES. Both patented and non -proprietary medicines (medicine materials and decoction pieces) 
importation must have import license from the Ministry of Health.  
 
Page 20, para 1.29  
 
Q4: Under the background of the Belt and Road Initiative, the cooperation between China and 
Cambodia in the construction of transportation, electricity and other infrast ructures has been 
constantly deepened. What are the preferential policies provided by Cambodia for foreign 
investments? Please explain in details.  
 
Answer:   
Cambodia has open economic policies with an investment law applying for both national and 
foreign i nvestments to be provided fairly and equally treatment. Foreign investment is allowed for 
all sectors in Cambodia without any requirements of local equity participation including banking, 
telecommunication and other service sectors. Beside the market acces s, foreign investments are 
also entitled investment incentives and protections equally to the national investment.  
Today, Cambodia has no policy to treat foreign investments differently. In international 
agreements, however, Cambodia has reserved the right  to adopt or maintain any measures 
regarding MFN for some sectors, sub -sectors and activities.  
 
Page 25, para 2.11  
 
"New or implementing legislation or regulations are under preparation or consideration, inter alia, 
in competition, rubber, mining, insuranc e, telecommunications, civil aviation, and e -commerce. " 
 
Q5: What are the latest developments in mining -related laws and regulations?  
 WT/TPR/M/364/Add.1  
 
- 70 - 
 
  Answer:   
There are 2 mining -related Sub -Degrees adopted by the Government of the Kingdom of Cambodia 
in 2016:  
 
1. Sub-Decree No.72 (05 May 2016) on the Management of Minerals Resources Exploration 
Licenses. This Sub -Decree aims to manage all the exploration licenses and the industrial mining 
license so as to promote effectiveness efficiency and transparency and the en vironmental and 
social responsibility in mining operations. And the purposes of this Sub -Decree are to regulate: 
management, land use and management of land, rights and obligation of the concessionaire, 
procedure formalities and conditions for granting the  exploration license and the industrial mining 
license.  
 
2. Sub -Decree No.195 dated 22 September 2016 on the Management of Mineral Exploration has 
the purpose of maximizing benefits of minerals products in developing social economy based on 
the comparative  advantages of economy, social and environment.  
 
Page 32, para 2.30  
 
"No changes were made to the 1994 Law on Investment (last amended in 2003), the main piece of 
legislation governing investment in Cambodia. Under Sub -decree No. 111 (27 September 2005) on  
the Implementation of the Amendment to the Law on Investment, foreign and national capital 
receives the same treatment except for activities and land ownership subject to investment 
restrictions. " 
 
Q6: Please specify the specific procedures by which the C ambodian government allows foreign -
invested enterprises to use its land, especially those for mining investment.  
 
Answer:   
Under the Constitution of Cambodia, all minerals belong to the state. Minerals deposit can be 
found above or underground, on private or public land. Any foreign or domestic companies can 
apply for exploration and mining licenses through proper procedures. Though foreign nationals 
(natural and legal persons) are not allowed to purchase or own land. As for public land in the 
potential min ing areas, the state can facilitate the use of land by investors for investment purpose 
until the end of the project development duration.  
 
Page 52, para 3.59  
 
"SEZs（Special Economic Zones ） are eligible for a number of incentives, including profit tax 
holidays and rebates, special depreciation, exemption from import duties and taxes, zero -rate VAT 
on imports, and special customs procedures (Section 3.3.1). " 
 
Q7: Please clarify the detailed i ncentives in the Special Economic Zones (SEZs)  
 
Answer:   
Cambodia offers essentially no special and differentiated treatment to investment projects in SEZs. 
This avoids the creation of two distinct regimes which may be a source of complexity. A Qualified 
Investment Project (QIP) located in an SEZ is entitled to the same incentives and privileges as 
other QIPs, as stipulated in the Amended Law on Investment and the Law on Taxation. However, 
zone developers and investors are eligible for additional incentives  (such as further VAT 
exemptions [suspension] and special customs and other import -export procedures and 
administrative formalities). Similarly, QIPs in the agricultural, agro -processing as well as garment 
and textiles sectors are entitled additional incen tives similar to those in SEZs.  
- Tax holiday of up to 9 years: The scheme is composed of a trigger period, 3 years, and 
an additional priority period. The trigger period starts with the issuance of a certificate 
granting QIP status and ends with the first  year of profit or 3 years after the first 
revenue is made, whichever is sooner. According to the Financial Management Law, the 
length of the priority period depends on the type of project and the amount of invested 
capital (Table 5.3). A QIP is subject to  the 20% CIT rate after the tax exemption period 
as determined in the Law on Taxation.  
- 40% special depreciation allowance: Alternatively, QIPs may opt for a 40% special 
depreciation allowance on the value of the new or used tangible properties employed i n WT/TPR/M/364/Add.1  
 
- 71 - 
 
  production or processing, which may be particularly attractive for capital -intensive 
projects.  
- Full import duty exemption: QIPs also benefit from duty -free import of production 
equipment, production input and construction materials.  
- Other exemptions : QIPs are not subject to any restriction on profit repatriation, 
reinvestment of earnings, and are fully exempted from export taxes.  
 
The following are details of incentives for zone developers and investors:  
 
Zone developers   The exemption period for the  Tax on Profit shall be provided for a 
maximum period of 9 years.  
  The import of equipment and construction materials to be used 
for infrastructure construction in the zone shall be allowed and 
exempted of import duties and other taxes.  
 The Zone Developer shall receive custom duty exemption on the 
import of machineries, equipment for the construction of the road 
connecting the town to the zone, and other public services 
infrastructures for the zone and public interests.  
 The Zone Developer may request, under  the form of a temporary 
admission (AT), the import of means of transport and machineries 
used for the construction of the infrastructures in accordance with 
the laws and regulations in force.  
 The Zone Developer may obtain a land concession from the State 
for establishing the SEZ in areas along the border or isolated 
region in accordance with the Land Law, and may lease this land 
to the Zone Investors  
Zone investors   The same incentives on customs duty and tax as other QIP shall 
be entitled  
 The Zone Investo r entitled to the incentive* on Value Added Tax 
(VAT) at the rate of 0% shall record the amount of tax exemption 
for its every import. The said record shall be disregarded if the 
Production Outputs are re -exported.   In case the Production 
Outputs are impor ted into the domestic market, the Zone 
Investor shall refund the amount of Value Added Tax as recorded 
in comparison with the quantity of export.  
 
Para 3.60, Page 52  
 
The authorities state that there are currently 46 SEZs  that have been approved in Cambodia; of 
these, 16 are operational (Table 3.8). Total exports from SEZs in 2016 were over US$1.35 billion, 
an increase from US$1.12 billion in 2015. Additionally, according to the authorities, exports from 
SEZs had exceeded US$300 million in the first quarter of 2017. Furthermore, during the period 
under review, 212 projects were set up inside the SEZs, with an i nvestment outlay of over 
US$3.5  billion creating over 85,000 jobs. " 
 
Q8: Please explain the different policies in the different SEZs  
 
Answer:   
Currently, Government policy is identical in all SEZs.  
 
Q9: Is there any incentive against national treatment and MFN. If yes, please specify.  
 
Answer:   
Currently, Cambodia has no in centive against NT and MFN.  
 
Page 81, para 4.27  
 
"In line with the NSDP 2014 -2018 guidelines (Section 2.2), the MoE established four protected 
zones (i.e. core, conservation, sustainable development, and community development) to prevent 
encroachment on th e protected areas through the development of agro -industry and ecotourism 
projects and the establishment of protected area communities. " WT/TPR/M/364/Add.1  
 
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Q10: We would like to learn more about the specific contents of the protection policies adopted by 
Cambodia over the f our protected zones, especially relevant policies that allow FDI to carry out 
certain activities in the protected zones.  
 
Answer:   
According to the Law on Protected Area, the Royal Government of Cambodia may permit 
development and investment activities in the sustainable used zone, in consulting with relevant 
ministries and institutions, local authorities, and local communities in accordance with relevant 
laws and procedures with the request from the Ministry of Environment.  
 
The followings are details of t he protected areas:  
According to the Law on Environmental Protection and Natural Resource Management (1996), 
there are four protected zones consisting primarily of National Parks, wildlife sanctuaries, 
landscape protected areas and multiple use areas. Those protected zones ar e expanding to 8 areas 
by the Law on Protected Areas (2008). The other 4 areas are Ramsar (Wetlands) site, biosphere 
reserve, natural heritage site and Marine Park.  
The establishment or modification of any protected area  shall be based on  the results of  research  
studies, criteria, management objectives, and access rights  to resource uses,  land titles, and other 
relevant aspects. Each protected area shall be divided into four (4) management zoning systems 
as the following: core zone, conservation zone, sustainable  use zone  and community zone.  
After consulting with relevant ministries and institutions, local authorities, and local communities in 
accordance with  relevant  laws and procedures,  the Royal Government  of Cambodia may permit 
development and investme nt activities in sustainable  use zone in accordance with the 
request from the Ministry of Environment. The sustainable  use zone is the 
management  area(s)  of high economic values for  national  economic development and 
management, and conservation of the prot ected area(s) itself thus contributing to the local 
community, and indigenous ethnic minorities' livelihood improvement. (Law on Protected Areas 
2008, article 11).  
 
The Government Report  
 
Page 5, para 4.1  
 
"4.1. Completing and Improving the Legal and Regulatory Regime " 
"…Laws pass through three stages of development: drafting by the line ministry concerned; 
consideration by the Council of Ministers; and, if approved by the Council of Ministers and 
submitted to the National Assembly, consideration and a doption by the National Assembly and by 
the Senate. The following reports on the main actions completed since the previous Trade Policy 
Review, and on the state of play as regards laws that are still under development… " 
 
Q11: Do the Cambodian justice and f inancial regulatory departments plan to formulate laws and 
regulations on the settlement tools relating to international trade by taking into account 
international common practices? For example, do they plan to formulate special regulations that 
normalize the settlement tools -related disputes in international trade and protect the relevant 
rights and interests of financial institutions as bona fides third parties according to UCP660 and 
other international trade practices promulgated by international chambe rs of commerce?  
 
Answer:   
Relevant departments of Cambodia is conducting a study regarding the development of laws and 
regulations on the settlement tools relating to international trade.  
 
Q12:  How will Cambodia facilitate the popularization of knowledge a mong law practitioners 
concerning international common practices related to international trade and other professional 
knowledge?  
 
Answer:   
Cambodia has been organizing many workshops and seminars which assisted by development 
partners to share knowledge and experiences to private and public sectors, Judges, students, 
professors, lawyers, and arbitrators; and will seek further technical assistance to organize more 
workshops in the future.  
 WT/TPR/M/364/Add.1  
 
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  Page 6, para 4.11  
 
"The following laws are currently under development:  
 …… 
  Law on Traditional Knowledge, Genetic Resources and Traditional Cultural Expression 
(being discussed and developed by relevant Ministries (Ministry of Environment, Ministry 
of Culture and Fine Arts, Ministry of Health and Ministry of Industry and Handicraft)  
……" 
 
Q13:  Is there a part concerning traditional Chinese medicine in the law being developed by the 
Ministry of Health?  
 
Answer:   
Currently the Ministry of Health is drafting a Sub -Decree on the M anagement on the Traditional 
Medicine Practitioners. This Sub -Decree covers broad definition of traditional medicine in which 
may be included Chinese traditional medicine.  
 
Other Questions  
 
Question 14: Cambodia 's restrictions on overseas loans and the acceptance of overseas asset 
pledges: (Article 8.2.3 and 8.2.4 of No. B7 -97-147 Proker: Prakas on Conditions for Banks and 
Financial Institutions) the restrictive provisions that loans offered shall not be used outs ide 
Cambodia and that overseas mortgaged properties shall not be used to guarantee local loans (the 
loans also include lease financing and various forms of signature guarantee). The restrictions 
imposed by the Central Bank of Cambodia on overseas financing  are not favorable for some of the 
designing and guarantee arrangements of financing institutions by external investments.  
 
Q14:  Does Cambodia plan to remove the restriction that loans issued by branches shall not be 
used outside Cambodia and the restrict ion on overseas mortgaged properties used to guarantee 
local loans?  
 
Answer:   
Cambodia has issued a Prakas No. T9 -98-414 Br.K Dated 28 August 1998 to restrict banks and 
financial institutions to use the sources of fund, mobilize locally, to provide loan ov ersea and 
accept oversea asset as the collateral for loan. This Prakas aims to prevent risk and uncertainty 
arising from the lack of banks and financial institutions' knowledge of credit risks analysing of their 
customers' abroad. Nonetheless, Cambodia ban king system has developed rapidly during the last 
decade. Banks and financial institutions are recently filled with good and capable human resources 
and technology which enable them to have suitable skill and knowledge in assessing and 
evaluating their cus tomers oversea. Thus, Cambodia will do a comprehensive check on this issue, 
particularly on the risk on financial stability as whole before we come up with decision to liberalize 
this sector.  
 WT/TPR/M/364/Add.1  
 
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  FOLLOW -UP QUESTION  FROM THE EU  
The Government Report  
 
Paragraph 4.45 (primary and secondary education), page 11  
 
Q1: Could Cambodia present an indicative planning regarding the adoption of the measures that it 
intends to take in order to improve the efficiency and quality of education, especially to increase 
the retention and transition rate?  
 
Answer:   
Cambodia Education Policy is focusing on quality as clearly stated in current Education Strategic 
Plan (ESP) 2014 -2018 and for the next ESP 2019 -2023 in line with education reform agenda. A 
key numbers of strate gies are being implemented as follow in order to improve the efficiency and 
quality, retention and transition rate:  
  Continuous implementation of teacher policy as a core instrument for education quality 
improvement;  
  Implementation of curriculum and teach ing-learning materials;  
  Strengthening School Based Management including administration, implementation of 
curriculum and teaching learning, teaching professional development and inspection and 
school planning and budgeting;  
  Continuous examination reform and strengthening learning assessment for policy reform 
and classroom improvement;  
  Continuous Public Management Reform for better budget allocation/linkage between 
policy/priorities and budgeting, increasing budget execution;  
  Reducing repetition and drop  out students by increasing education quality so that 
students' learning achievement meet the standard to be passed to the next grade or next 
education level, providing additional interventions for disadvantage students such as 
scholarships for students fr om poor families, bridging programs for ethnic minorities, 
dropout prevention program by counselling and close contact with parents.  
 
Strengthening the roles of Higher Education Institutions (HEIs) and Accreditation Committee of 
Cambodia (ACC) to assure the capacity to manage and operate the accreditation system of 
Cambodia.  
 WT/TPR/M/364/Add.1  
 
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  FOLLOW -UP QUESTION S BY MALAYSIA  
The Government Report  
 
4. Enhancing Cambodia 's competitiveness  
 
Page 4 , Para 4.1  
 
The remarkable growth that Cambodia has experienced is the direct result of its ability to compete 
in international markets and maintain an open economy . Cambodia's competitiveness was initially 
based primarily on its abundant and low -priced labour. More recently, trade preferences under GSP 
and duty -free-quota -free (DFQ F) programmes, in particular the EU's EBA programme, as modified 
by the 2011 changes in its rules of origin, have been the key to export expansion: as much as 
80% of the growth of Cambodia's exports occurred in markets providing non -reciprocal tariff 
preferences. These incentives, when combined with Cambodia's attractive investment regime, 
account for the major part of Cambodia's growth performance.   
 
Q1: Appreciate if Cambodia could provide clarification on the current wage (i.e . per hour and per 
month) o f labour in Cambodia by educational attainment, occupational group and economic sector.  
 
Answer:   
Information is not available at the level of detail requested. Currently, there is only a Prakas  of the 
Ministry of Labour and Vocational Training which determines the minimum wage for garments and 
footwear industry. The minimum wage for 2018 is US $170 per month. Together with minimum 
wage, other fringe benefits is also added over the minimum wage. T hese fringe benefits include 
Transportation and accommodation allowance of US $7 per month, attendance bonus of US $10 per 
month and seniority bonus from US $2 to US $11 per month according to number of year working 
at the factory.  
 
Page 5 , Para 4.6  
 
There ar e a number of broad, cross -cutting issues that affect the competitiveness of Cambodia as 
an investment destination and that impact all firms seeking to produce for export. These include 
the quality and completeness of the legal environment; the cost of com plying with government 
regulations and procedures; the quality of the labour force; the cost of electricity; and the cost of 
transportation and logistics. The following sections describe briefly the  Government's actions and 
plans in these areas.  
 
Q2: Malaysia seeks information on the specific issues faced by Cambodia pertaining to quality of 
the labour force that affect its competitiveness.  
 
Answer:   
Specific issues faced by Cambodia pertaining to quality of the labor force that affect its 
competitive ness are described in section 4.3 of the Government Report.   
 
Lacking of skilled labor is the most fundamental challenge faced by Cambodian industry. However, 
the Ministry of Education, Youth and Sport (MoEYS) is operating within the framework of its 
Educa tion Strategic Plan 2014 -18 and its Master Plan for Technical Education at the Upper 
Secondary Level (2015 -19) to increase the skilled labor to meet the market demands.  
 
4.3 Improving the quality of the labour force  
 
Page 11 , Para 4.46.   
 
As regards higher  education:  
 
 The MoEYS has recently adopted its first long -term plan for the higher education sub -sector, 
which consists of 73 higher education institutions (HEI) -- universities and institutes -- of 
which 60 are private. The Cambodian Higher Education Roadm ap 2030 and Beyond lays 
out four key goals: to raise the quality and relevance of higher education to the economy 
and society; to provide broad and more equitable access to higher education; to WT/TPR/M/364/Add.1  
 
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  internationalize Cambodian higher education; and to improve th e governance and 
financing of higher education.  
 
Q3: We seek further information on the percentage of graduate employability for the past 5 years 
(i.e. percentage of those securing jobs and those still looking for jobs within 6 months after 
graduation)? As  well as list of higher education programmes that being recognised abroad.  
 
Answer:   
Currently, the percentage of graduate employability and list of higher education programs are not 
officially available. Cambodia will send this information when it is officially published.  
 
Page 12 , Para 4.51  
 
Interaction between labour and employers is guided by the 1997 Labour Law, which lays out the 
rights and obligations of workers and employers, dealing with issues such as contracts, working 
conditions, the health  and safety of workers, trade union freedom and worker representation, the 
settlement of disputes, and strikes and lock -outs. The Law on Trade Unions, promulgated in 2016, 
provides a more detailed legal framework for the operation of trade unions, clarifyi ng the rights 
and responsibilities of workers' and employers' organizations.  
 
Q4: Malaysia would appreciate if Cambodia could provide further elaboration on the social 
protection initiatives undertaken for local and migrant workers.   
 
Answer:   
The following are frameworks covering social protection initiatives for workers:  
 
-  The legal framework introducing social protection was the Labor Law and the Law on the 
Social Security Schemes for Person defined by the Provision of the Labor Law.  
 
-  The National Social Protection Policy Framework 2016 -2025 was adopted in 24 March 2017 
which cover work -related scheme, unemployment scheme, and disability scheme, health 
care scheme and pension scheme, for all Cambodian citizen.  
 
 
-  The social protection for l ocal workers was first established in 2008 with coverage on work 
injuries for private sectors. In 2016, it expands its coverage to health care. In 2017, the 
social protection expands its coverage to the public sector.  
 
-  Recently, an Equity Funds and additi onal allowance for pregnant worker was introduced to 
provide health care scheme to disadvantaged family, vulnerable family, local authority, 
athlete, and informal worker, while the aforementioned additional allowance is available for 
both informal and form al worker. The pension scheme will be introduced by 2019.  
 
Regarding social security for migrant workers, we are currently preparing and seeking cooperation 
with outgoing countries of the migrant workers.  
 
Page 13 , Para 4.52  
 
Cambodia presently has a government -mandated minimum wage for workers in the garment and 
footwear sectors. The minimum wage is set annually by the Ministry of Labour and Vocational 
Training, following a recommendation by the Labour Advisory Committee, a tri -partite body made 
up of  representatives of labour, employers and the Government. A Law on Minimum Wage and a 
Law on Procedures of Labour Dispute Judgment are presently under development, and are 
expected to be passed in the first quarter of 2018.  
 
Q5: Appreciate if Cambodia coul d inform the existing wage (i.e . per hour and per month) of labor, 
if any, by educational attainment, occupational group and economic sectors.  
 
Does the coverage of the minimum wage (which currently for garment and footwear sectors) will 
be expanded to oth er sectors?  
 WT/TPR/M/364/Add.1  
 
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  Answer:   
Please see the answer to question 1, above. Cambodia is conducting studies for determination of 
minimum wage in sectors other than garments and footwear  
 
The Secretariat Report  
 
Para 3.3.6 Government Procurement , Page 64 – 65 
 
3.112.  The Secretariat report explains that competitive shopping is used for selecting suppliers, 
contractors, or service providers when existing procurement targets are readily available in the 
local market and are of medium value. Canvassing is used when procur ement targets are readily 
available in the local market and are of low value .  
 
Q6: Can Cambodia provide further details on how the process of selecting suppliers, contractors, 
or service providers for competitive shopping and canvassing is conducted?  
 
Answer:  
- Competitive Shopping is used in conditions of existing procurement targets are readily 
available in local markets and in medium value. An estimated medium value contract is from 
20 million Riels ( US$5,000) to below 100 million Riel ( US$25,000). The  advertisement shall be 
published in national language in the provincial/municipal national newspapers that are widely 
circulated and consecutively published at least 2 years in the country or in Website. This price 
quotation shall be put in an envelope an d sealed. The bid opening shall be made in public. The 
period of advertisement, receiving, and opening of documents shall be in an average of 15 days. 
The bidder who participates in this  Competitive Shopping shall be required to deposit bid 
guarantee in a fixed amount as stated in bids document. In case of the bidder is selected as a 
winner, Performance Guarantee in amount of 2% of contract price shall be required.  
- Canvassing is  used in conditions of procurement targets are readily available in local mar kets 
and in low value. An estimated low value of contract is below 20 million Riel (US $5,000). In this 
method, the advertisement shall not be made, we just select at least three suppliers/contractors 
and invite them to submit price quotation by letter. The  average period for submission of price 
quotation shall be 7 days. The bidder who participates in Canvassing  shall not be required to 
deposit bid guarantee and Performance Guarantee.  
 
3.114.  For consultancy services, there are 4 methods of procurement i.e.  quality -based selection, 
quality -and cost -based selection, budget -based selection and direct negotiation -based selection.  
 
Q7: Could Cambodia clarify on how does the procuring entity determine the method to be used for 
consultancy services? This is followed by what is the most preferred method used by procuring 
entity for consultancy services?  
 
Answer:   
The methods for selecting consultancy services shall include (1) -Quality Based Selection (QBS), 
(2) Quality and Cost Based Selection (QCBS), (3) Budget Based Selection (BBS), (4) Least Cost 
Based Selection (LCBS) , (5) Direct Negotiation Based Selection(DNBS), and (6) Consultant's 
Qualifications Based Selection(CQBS).  
 
The Procuring Entities determine the method to be used for consultancy services shall be 
considered on (1) complexity of assignment, (2) assignment impact and (3) comparability.  
 
Quality and Cost Based Selection (QCBS ) is the  most preferred method used by Procuring Entities 
for consultancy services because QCBS uses a competitive process among short -listed firms that 
take into account the quality of the proposal and cost of the services in the selection of the 
successf ul firm. Cost as a factor of selection shall be used judiciously. The relative weight to be 
given to the quality and cost shall be determined for each case depending on the nature of the 
assignment.  
 
3.115. Besides procurement committee, all procuring enti ties are also required to have a 
procurement unit which will be staffed with officers with adequate public procurement 
qualifications.  
 WT/TPR/M/364/Add.1  
 
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  Q8: Malaysia welcomes Cambodia 's elaboration on the qualifications of a public procurement 
officer considering the prerequisite.  
 
Answer:   
In Cambodia, the prerequisite of a public procurement officers apply only on head of Procurement 
Unit (PU) of Procuring Entities and the others no prerequisite. A head of Procurement Unit shall 
hold (1) At least Bachelor Decree on e conomics or finance, (2) Experience at least 3 years in 
economics or finance and (3) A procurement certificate issued by Ministry of Economy and 
Finance.  
 
3.119.  The Secretariat report explains that procuring entities have the authority to examine and 
address the complaints of bidders at each stage of procurement. A complainant who disagrees with 
a decision of a procuring entity can lodge his/her complaint with the MEF.  
 
Q9: Is there a specific complaint mechanism to address these complaints? If yes, please explain.  
Does Cambodia provide interim measures pending resolution of complaint?  
 
Answer:   
Base on the existing procurement regulations, Cambodia has a specific mechanism for solving 
complaints of bidders. These mechanism have been divided into three level: (1)  Procuring Entity, 
(2) Ministry of Economy and Finance and (3) competent court of Cambodia.  
 
The bidders has right to file a complaint in writing to procurement entit ies on misconduct or mis -
procurement by procurement official in any stage of procurement process. The procurement entity 
has authority to examine and to solve the complaints in 15 working days. If a complainant isn't 
satisfied with the decision of the proc urement entity, he or she can lodge the complaint to Ministry 
of Economy and Finance (MEF) for another consideration and solutions. MEF shall examine and 
solve the complaint in 15 working days.  The MEF decision is considered as final decision. 
However, if  the complainant is still not satisfied with the decision, he or she can lodge to the 
competent court of Cambodia. Moreover, [based] on the Procurement Law, we shall develop the 
Sub Decree on Complaint and Dispute Resolution. Currently, the draft of this S ub Decree has been 
prepared and is being discussed internally in MEF.  
 
The interim measures pending resolution of complaint shall be made, in case of  a complainant files 
the complaint in the stage of bid evaluation process. In this stage, the signing of t he contract shall 
be pending until the complaint is solved.  
 
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