WT/TPR/S/253 Trade Policy Review 
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 III. TRADE POLICIES AND PRACTICES BY MEASURE 
(1) INTRODUCTION  
1. This chapter takes stock of Cambodia's pr ogress on the institutional and implementation 
fronts with respect to (i) measures directly affecting imports of goods (including  customs procedures, tariffs and other charges, customs valuation, PSI, rules of origin, non-tariff barriers, government procurement and state-trading enterprises;  (ii) measures affecting goods ex ports (export procedures, 
taxes, restrictions, subsidies and promotion as well as special economic zones and (iii) other relevant 
measures relating to business regulation, and in par ticular technical barriers to trade, SPS measures 
and the protection of intellectual property rights. 
(i) Trade policy prior to WTO accession 
2. Over the past three decades, Cambodia has ma de considerable progress in establishing a 
modern trade regime. Under the trading system a dopted in the early 1980s, the level and composition 
of trade was effectively controlled through qua ntitative restrictions and state-owned trading 
companies. Tariffs and trade taxes were primarily  a means to collect revenue. In the late 1980s, 
however, a process of market-oriented reforms be gan. The state monopoly on foreign trade was 
abolished in 1987 and a 1989 foreign investment law allowed private companies to engage in foreign 
trade. Privatization was carried out during a first phase from 1991 to mid-1993, and a second phase 
starting in April 1995. In 1993, trade policies were further liberalized, resulting in fewer binding 
quantitative restrictions and non-prohibitive tax ra tes on imports and exports . In 2001, the tariff 
structure was substantially rationalized and libera lized when the maximum MFN rate was reduced to 
35%. Since 2000, Cambodia has continued to implem ent preferential tariff reductions for its ASEAN 
trading partners under the common external prefer ential tariff.  In 2004, Cambodia acceded to the 
WTO and committed to implementing a host of legal and other reforms. 
(ii) Main accession commitments  
3. Cambodia's protocol of accession to the WTO contained 29 separate statements describing the 
way in which it intended to fulfil its commitment to  abide by WTO rules. According to Cambodia's 
deputy chief accession negotiator
1, each of the statements dealt with  a specific policy area covered by 
WTO rules. In 17 areas, Cambodia's existing laws a nd regulations were found to be either in full 
compliance with WTO rules, or could be made comp liant by government decision before the date of 
accession. In these areas Cambodia's commitment wa s to apply the rules as from the date of 
accession.2 
4. This left a dozen areas in which Cambodia was not in compliance with WTO rules, or in 
which it committed to policies or actions that we re not being pursued. In three areas, Cambodia 
committed to having a WTO-compliant customs law and a law on judicial organization in place and to 
set up a commercial court system. In four other areas, Cambodia was gran ted transition periods 
delaying implementation of the agreements on TRIP s, Technical Barriers to Trade, Sanitary and 
                                                      
1 Sok Siphana (2005). 
2 The areas covered were:  pricing policies;  custom s charges other than normal customs duties;  tariff 
exemptions;  fees to cover costs of customs procedures;  domestic taxes;  quotas, licensing and other non-tariff barriers;  pre-shipment inspection;  export restrictions;  industrial subsidies;  trade-related investment measures;  
state trading;  free zones and special economic zones;  tr ansit trade;  agricultural export subsidies;  trade in 
textiles;  publication of information on trade; and free-trade agreements. Cambodia WT/TPR/S/253 
 Page 29 
 
 
 Phytosanitary Measures, and Customs Valuation.  Cambodia did not join the plurilateral agreements 
on government procurement or trade in civil aircraft. 
(2) MEASURES DIRECTLY AFFECTING IMPORTS  
(i) Customs procedures  
(a) Legal framework  
5. The work programme resulting from Cambodia's accession to the WTO lays out a series of 
legal and regulatory reforms to bring Cambodia's business, investment and trade regimes into line 
with international norms and provide transparency and predictability.  During the review period, a 
considerable amount has been achieved in updatin g the legal framework on Customs, with the 
promulgation of the 2007 Law on Customs, the sub- decree on prohibited and restricted goods, and 
several ministerial prakas on a wide range of customs-related issues (Box III.1). 
(b) Reform of customs procedures 
6. The Government has made significant progress in  implementing customs reforms, critical to 
improving trade procedures at the border. Two prior ity measures were: (i) the implementation of an 
automated system for customs data (ASYCUDA) at th ree major customs check points.  As part of the 
customs system expansion project, Customs undertook a needs assessment for the national rollout of ASYCUDA expected to commence in 2011; and (ii)  implementation of the transaction value (TV) 
method in line with WTO commitments.  Customs made progress, including establishing the 
Transaction Value Management Unit, responsible  for overseeing TV implementation, and the 
Customs-Private Sector Partnership Mechanism (CPPM), to coordinate and improve mutual 
understanding between the customs administration and the private sector.  However, up to 2011, concerns were expressed at the WTO about Cambodi a's failure to fully implement transaction values 
and its continued use of minimum customs values on certain imports.  
7. Cambodia introduced a 5-year (2003-08) reform and modernization programme to streamline 
and improve the effectiveness of customs operations a nd to facilitate trade.  Since the adoption of the 
Law on Customs in 2007, policy has been directed toward implementing the provisions of the law, while, at the same time, reviewing customs procedur es and working toward their simplification.  The 
enactment of the Customs Law has prepared th e way for the adoption of some 36 regulations, inter 
alia, to fulfil commitments to ASEAN to move to the Common Effective Preferential Tariff (CEPT) 
scheme by 2010, adhere to the 1999 Revised Kyoto Convention, and create a clear status for professional customs brokers.   
8. A revised plan has been drawn up for the modernization and streamlining of customs 
procedures for the period 2009-13.
3  The plan's objectives include increasing taxpayer awareness; 
developing an anti-smuggling policy; introduci ng an automated customs clearance system;  
developing and implementing the Cambodia Single Window;  introducing risk-management and post-
clearance audit; implementing the WCO SAFE Framework of Standards4;  acceding to the revised 
Kyoto Convention (Cambodia has signed a letter of in tent and plans to become a contracting party 
by 2012);  and strengthening Cambodia's enforcemen t capacity to combat illegal trade in arms and 
narcotics.  
                                                      
3 The document is entitled "Strategy and Work Plan on Reform and Modernization of the General 
Department of Customs and Excise Department Strategic Objectives: 2009-2013". 
 4 World Customs Organization (2007). WT/TPR/S/253 Trade Policy Review 
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 Box III.1:  Customs laws and regulations
With regard to Customs, in order to meet WTO requirements, the following laws and regulations have 
been enacted: 
1. Law on Customs,  promulgated on 20 July 2007, consists of 13 Chapters and 80 Articles. 
2. Supporting Regulations  consist of 1 Sub-Decree (Anukret), 25  Ministerial Prakas, and 2 guidelines 
 as following: 
 (a) Sub-Decree:  
  Anukret on Prohibited and Restricted Goods List 
 (b) Ministerial Prakas:  
  Prakas on Provision and Proc edure of Customs Declaration 
  Prakas on Establishment and Functioning of Customs Brokers 
  Prakas on Customs Valuation of Imported Goods   Prakas on Customs Bonded Warehouse 
  Prakas on Customs Temporary Storage 
  Prakas on Refund of Customs Duties and Taxes   Prakas on Security 
  Prakas on Reporting, Movement, Storage and Transport of Exported Goods 
  Prakas on Importation of Goods under Temporary Admission   Prakas on Management of Documents, Books, Records, and other Information 
  Prakas on Determination of Exempt Goods 
  Prakas on Exempt Goods Control Procedures   Prakas on Management of Unclaimed Goods 
  Prakas on Temporary Export of Goods 
  Prakas on Customs Formal ities outside Customs Offices 
  Prakas on Extension of Customs Zone 
  Prakas on Post Clearance Audit by Customs and Excise Department 
  Prakas on Customs Transit   Prakas on Special Customs Pro cedure in Special Economic Zone 
  Prakas on Procedures for the Ma nagement of Special Designed Goods 
  Prakas on Transportation Distribution and Possession of Imported Goods in the Customs 
Territory 
  Prakas on use of Information Obtained by Customs Officers   Prakas on Settlement of Customs Offences 
  Prakas on Customs Tariff and Tariff Classification of Goods 
  Prakas on Reward Distribution    Prakas on Procedures on Payment of Duty and Taxes and other levies on Imported and 
Exported Goods 
  Prakas on Reporting of Imported Goods  (c) Guidelines: 
Instruction No. 583, 30 June 2008, on the implementation of Initial Post 
Clearance Audit 
  Manual in the Customs and Excise Department 
  Instruction No. 790, 28 August 2008, and Procedures for Customs Transit 
3. The remaining regulations to be enacted are : 
  Prakas on Setting of Interest Rates on Debts 
  Prakas on Procedures for Temporary Seizur e of Goods, Conveyances, Documents and Other 
Items 
  Inter-Ministerial Prakas on Seizure (offence) Report 
  Prakas on Appeal Procedures 
  Prakas on Exemption for Travellers, Crews, and Border Crossers 
  Anukret on Authorization for customs officers to carry out duties outside the customs territory 
and granting of permission for foreign customs officers to carry out duties in the customs territory. 
Source:   Cambodian authorities. Cambodia WT/TPR/S/253 
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 9. The Government has taken several steps to stre amline import–export procedures.  As a result, 
the number of days required to process document for imports and exports, as well as costs to export 
per container, have declined .  The authorities maintain that with  the introduction of the ASYCUDA 
system, over 90% of import declarations are clear ed within 24 hours (from the filing of the goods 
declaration to the release of goods).5   
(c) Trade facilitation  
10. In 2004, Cambodia created a Speci al Inter-Ministerial Task Force on Trade Facilitation and 
Investment Climate6, with a mandate to design an integrated programme of reform that addresses the 
most urgent impediments to trade.  In its 12-point action plan, the task force proposed far-reaching reforms, including:  the strategic review of Ca mcontrol; the creation of a single window to manage 
trade facilitation; the introduction of a WTO-compatib le Flat Fee for Service; the implementation of a 
single administrative document after review and re moval of unnecessary overlaps; the introduction of 
an overall risk management strategy;  and the st reamlining and automation of Customs and all trade 
facilitation processes. 
11. A strategy was formalized in 2006 on a risk-m anagement framework to manage and control 
the clearance of imported and exported goods.
7  Successful implementation reduced the inspection 
rate for both outbound and inbound containers, from 100% to below 20% by end 2010.  The Risk 
Management and Audit Office in the General Department of Customs and Excise was created and 
staffed, and the sub-decree on a list of prohibited and restricted goods was issued in December 2007. 
Risk selectivity criteria have been developed and a profiling of traders has been created. 
12. Another output was the agreement among trade agencies to develop a single administrative 
document (SAD) to streamline documentation requireme nts at the border. The number of steps in the 
procedure and processing of applications for a certifi cate of origin and an ex port licence at MoC has 
been reduced from 11 to 8 steps since 2004. 
13. The third related output has been the comput erization of customs with the ASYCUDA World 
System.  The pilot implementation began at Si hanoukville Port in May 2008 and, after initial 
adjustments, is delivering faster processing, st ronger governance, and increased revenue collection. 
Currently the average time required to clear a shipme nt is 24 hours for both exports and imports.  In 
2010, the ASYCUDA system was extended, in its thir d phase, to two other main customs offices, at 
the Phnom Penh International Airport and Dry Port. 
14. The Government is developing a National Single Window8, based on the ASYCUDA 
platform, to provide a single entry point for trade-re lated transactions.  It is targeting 2012 for the 
window to be in place, in conjunction with the ASEAN Single Window, which requires Cambodia to 
complete implementation by then.  The electroni c single window should allow traders to submit 
required import/export documentation through one el ectronic gateway, and only once, instead of 
multiple times to different government  agencies.  It would allow trader s to pay duties, taxes, or fees 
                                                      
5 World Bank (2010c).  
6 Decision No. 12/2004. 
7 Sub-Decree 21 on the Facilitation of Trade th rough Risk Management was implemented by 
Ministerial Order 607 (MEF) on the Establishment and Functioning of the Risk Management and Audit Office. 
It identifies the respective roles and duties of all trade- facilitation-related agencies and eliminates overlap of 
responsibilities or duplication of activities. 
 8 The Committee on National Single Window was set up by MEF's Prakas 391, 22 May 2008, to 
govern the development of the National Single Window. WT/TPR/S/253 Trade Policy Review 
Page 32 
 
 
 via an electronic link to the banks.  Therefore, it would help increase transparency and predictability 
and reduce opportunity for inappropriate exercise of o fficial discretion to collect informal fees.  Most 
importantly, the single window would help address the issue of weak collaboration among Customs, Camcontrol, and other trade-related agencies.     
15. According to the authorities, significant pr ogress has been made overall on the 12-point 
action plan on trade facilitation, including the lowering of registration costs, the introduction of the 
SAD, customs automation (ASYCUDA World Syst em), the establishment of the Inter-Agency 
Coordinating Group for Trade Facilitation through Ri sk Management, and the introduction of risk 
management.  These achievements have cont ributed to trade facilitation through simplifying 
documentary requirements, increasing transparency, reducing the number of containers subject to 
physical inspection as well as the time required for customs clearance, improving compliance and 
increasing revenue.  However, the authorities note that  remaining challenges – including multiple and 
unpredictable fees, insufficient coordination acro ss agencies, and weak monitoring systems – may 
affect the effective implementation of risk management and may hinder the process of implementing other action plans.  
(d) Fees and formalities  
16. At the time of its accession, Cambodia applied a fee of 15,000 riels (nearly US$4) per 
import/export declaration. The fee is levied on imports from all sources, including Cambodia's 
preferential trading partners.  The charge corresponds  to the cost of printing the customs declaration 
form and the time spent by customs officers in processing the declaration.  This fee remains 
unchanged;  the introduction of what is called a WTO- compatible flat fee for service has not started 
yet.  The flat fee-for-service compensation mech anism should allow a single payment for all customs 
clearance processing. The authorities maintain that  Customs is designing a customs processing fee 
that may be used as a streamlined fee.  Camcontrol charges inspection fees of 0.1% of the c.i.f. value 
of imports, and 0.1% of the f.o.b. value on exports.   
17. In 2009, the Customs-Private Sector Partne rship Mechanism was established as a forum to 
discuss customs-related issues raised by the private sector. It is broadly recognized that the current 
levy on imports to finance customs administratio n should be limited to the approximate costs of 
processing individual import transactions  and should not be levied on an ad valorem  basis as the 
processing cost normally does not rise with the value of imports. 
18. The forum also recognizes that th e smuggling of products such as vehicles, fuel, soft drinks, 
livestock, crops, and cigarettes has undermined fa ir competition and legitimate investment.   The 
Cambodian Government has issued numerous orders  to suppress smuggling and has created various 
anti-smuggling units within governmental agencies, particularly Customs.  The Government has also 
established, inter alia,  a mechanism within the Customs servi ce to accept and act upon complaints 
about customs practices from traders and governments.      
(ii) Tariffs and other taxes and charges affecting imports  
(a) Overview 
19. Cambodia levies trade-related taxes in the fo rm of customs duties, an additional tax on 
gasoline (US$0.02 per litre) and on diesel oil (US$ 0.04 per litre), export tax, and two indirect taxes 
which are levied on the value of imports: value a dded tax and excise tax.  The VAT is a uniform 10% Cambodia WT/TPR/S/253 
 Page 33 
 
 
 rate and excise taxes are levied on a number of product groups (Table III.1).9  While Cambodia was 
reducing its import duties, excise taxes were increased to ensure that the tax reform would be revenue 
neutral.  According to the authorities, both taxes ar e levied on imports at the same rates and conditions 
as on domestic traded goods, without exception. 
20. Revenue collected by Customs on international trade is the main source of government 
revenue. Customs duties, VAT on imports, and ex cise taxes on imports accounted for between 70% 
and 56% of total tax revenue between 2004 and 2010 (Table III.2).  Customs duties accounted for 
16.9% of total tax revenue in 2010, down fro m 23.1% in 2005 as Cambodia implemented ASEAN-
related and autonomous tariff liberalization initiativ es.  Excise duty and VAT on imports account for 
14.6% and 19.8% of tax revenue respectively. The heavy dependence on trade-related taxes is 
nevertheless gradually declining, hence re ducing Cambodia's fiscal vulnerability.  
21. At around 8% of GDP, the tax ratio is low by regional standards. The Government's 
medium-term revenue strategy is to progressi vely reduce reliance on customs revenue by 
strengthening the domestic tax revenue base. At th e same time, Cambodia is to modernize Customs, 
including a reform of the valuation function, and to strengthen the fight against smuggling.   
Table III.1 
Summary of trade-related taxes, 2010 
Tax Description Exemptions Rates 
Customs  duties All tariff rates are MFN bound 
and uniform for all countries, 
except lower rates for ASEAN Dialogue Partners under the 
CEPT. 
Ad valorem  rates, levied on c.i.f. 
basis (i) imports of production 
materials, construction 
materials and production inputs for qualified 
investment projects (QIPs) 
approved by CDC 
(ii) imports of unprocessed 
agricultural products, 
seedlings, insecticides, 
pesticides and agricultural machinery 
(iii) imports for embassies, 
international organizations 
providing humanitarian aid, and certain development projects 0% for essential goods, seeds, 
and basic raw materials 
7% for intermediate goods 
15% for machinery and 
equipment  
35% for luxury goods 
including automobiles 
Additional tax Levied on gasoline and diesel 
oil  None US$0.02 and 0.04 per litre 
Export taxes    
Timber Ad valorem  tax levied on the 
value of processed woods 
limited to those cut on 
government-agreed concessions;  
Export ban on all round logs in place since 1997 None 5% or 10% 
Rubber Ad valorem  tax None 2%, 5% or 10% 
Other Ad valorem  tax levied on 
livestock and fishery products 
and on sand, gravel, and granite None 10% 
Table III.1 (cont'd) 
                                                      
9 Cambodia levies a 10% VAT on goods and services. To date, the Government has imposed the VAT 
only on large companies (but it is in the process of expanding the tax base).  Small taxpayers are not required to pay VAT.  Instead, they are assessed a tax of 2% on their an nual turnover.  The rationale for this dual system is 
that the administration and compliance costs of a full-fledged VAT regime would outweigh the expected 
revenue to be collected from small taxpayers. WT/TPR/S/253 Trade Policy Review 
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 Tax Description Exemptions Rates 
Value Added Tax (VAT) Covers goods and services 
through all stages of 
importation, production, and distribution Imports of agricultural seeds 
and breeding animals;  certain 
kinds of agricultural equipment; on ad hoc basis supporting 
industries or contractors that 
supply products or services to export-oriented garment 
manufacturers    Uniform 10% 
Excise tax Levied on selected products 
locally produced and imported 
 
For domestically produced 
goods, calculated on "ex-factory selling price" defined as 65% of 
the selling price before VAT 
and any discount; for imported goods, tax calculated inclusive 
of customs duty and c.i.f. value Imports of limited quantities of 
cigarettes, wine, petroleum 
products, and motor oil  Telecom services 3%; airline 
tickets 10%; motor vehicles 
15% or 45%; spare parts for 
motor vehicles 25% or 10%; 
motorcycles and spare parts 5% or 10%; cigarettes 10%; 
cigars 25%; beer 25%; wine 
and spirits 10%; soft drinks 10%; gasoline 33%; diesel 
4.3%; kerosene 10%  
Source: Cambodian authorities. 
Table III.2 
Share of international trade taxes in total t ax revenue and forgone customs duties, 2004-10 
(Billion riels and % share) 
2004 2005 2006 2007 2008 2009 2010 
Total tax revenuea (billion riels) 1,656.2 1,989.8 2,391.6 3,584.7 4,688.7  4,332.2  5,070.0 
of which (%)  
Customs duties (after exemption) 21.9 23.1 22.7 19.5 19.2 17.3 16.9 
Excise duties on imports 15.0 16.3 14.9 14.7 16.5 13.7 14.6 
Gasoline/diesel taxes 5.3 4.0 4.3 3.3 2.5 3.7 3.7 
VAT on imports 24.4 24.3 24.0 20.0 20.3 21.4 19.8 
Export taxes 1.2 0.9 1.0 0.6 0.5 0.3 0.4 
Others (fees & penalties) 1. 8 2.0 2.2 2.0 1.8 1.1 0.8 
Total international trade taxes 69.5 70.6 69.0 60.1 60.7 57.5 56.3 
Forgone customs duties  (billion riels)        
Customs duties before exemption  911.6 1,171.9 1,321.3 1,628.0 2,206.5  1,739.7  2,006.3 
Customs duties after exemption 362.8 459.2 541.9  698.6 899.0  751.5  858.7 
Exemption / forgone 548.8 712.7 779.4 929.4 1,307.5  988.2  1,147.6 
Exemption % of CD before exemption 60.2 60.8 59.0 57.1 59.3 56.8 57.2 
a TTR comprises direct taxes, indirect  taxes and international trade taxes. 
Source: Cambodian authorities. 
(b) Tariff structure 
22. Cambodia agreed to implement its tariff reform  largely before accession to the WTO. It did 
not participate in the optional tariff initiatives. For other duties and charges, Cambodia committed to 
bindings at zero and complying with the relevant WT O provisions, in particular Article II.1(b) of the 
GATT 1994.  
23. In reforming its tariff structure, Cambodia had reduced the number of tariff bands from 
12 to 4 before joining the WTO and the highest tariff rates of 40%, 50%, 90% and 120% were 
abolished.  The simple average applied tari ff rate fell from 17.3% in 2003 to 11.7% in 2011 
(Chart III.1). Cambodia WT/TPR/S/253 
 Page 35 
 
 
 051015202530354045
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 Source: WTO Secretariat calculations, based on data provided by the Cambodian authorities.Per centChart III.1
Average applied MFN tariff rates, by HS section, 2003 and 2011
01   Live animals & products  
02   Vegetable products03   Fats & oils      
04   Prepared food, etc.
05   Mineral products06   Chemicals & products07   Plastic & rubber
08   Hides & skins09   Wood & articles
10   Pulp, paper, etc.
11   Textiles & articles12   Footwear, headgear13   Articles of stones
14   Precious stones, etc.15   Base metals & products
16   Machinery
17   Transport equipment18   Precision instrument19   Arms & ammunition
20   Miscellaneous manufacturing21   Works of art, etc.Average applied rate 2011
(11.7%)Average applied rate 2003
(17.3%)
MFN 2003
MFN 2011 
 
24. A standard deviation of 9.2% in  2011 indicates that there is still some dispersion of tariff rates 
(Table III.3).  The highest tariff rate of 35%  protects several semi-processed goods, including 
processed meat and dairy, processed vegetables a nd fruits, beverages and tobacco, footwear, and 
motor vehicles.  All major excisable goods are in cluded in this band for revenue-raising purposes.  
Over 53.4% of tariff lines are duty free or subj ect to the minimum 7% tariff rate, up from 44% 
in 2001 (Chart III.2).  Cambodia has reduced its overall tariff lines from around 10,700 at the time of 
accession to some 8,300 in 2011 based on the HS 2007 nomenclature. 
25. Cambodia has bound 100% of tariff lines. The overall average bound duty rate is 20.1%, 
while the average applied rate is 11.7%.  For several  reasons, including the delay in conversion of the 
Bound Rate Items List, some tariff lines had applied rates that were higher than their corresponding 
bound rates;  in February 2011, the Government a pproved the modification of customs duty rates on 
these items to comply with the committed bound rates.   The simple average bound rate on agricultural 
is 28.8% and on industrial products the average bound rate is 18.7%. 
(c) Tariff escalation 
26. A notable feature of Cambodia's tariff struct ure is that the broad tariff bands correspond 
roughly to whether goods are final goods or raw mate rials. Cambodia tariff structure shows escalation 
from raw materials to intermediate goods and to finished products (Chart III.3).  Escalation is 
particularly evident in some major sectors, i.e. food, beverages and tobacco, textiles and leather, 
chemicals, and non-metallic mineral products. WT/TPR/S/253 Trade Policy Review 
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 Table III.3 
Cambodian tariff structure, 2003, 2005, and 2011 
(%) 
  MFN applied Final 
    2003 2005 2011 bounda 
1. Bound tariff lines (% of all tariff lines) .. 100.0 100.0 100.0 
2. Simple average rate 17.3 15.1 11.7 20.1 
    Agricultural products (HS01-24) 20.6 17.7 15.4 28.4 
    Industrial products (HS25-97) 16.7 14.8 11.1 18.6 
    WTO agricultural products 20.6 17.9 14.5 28.8 
    WTO non-agricultural products 16.8 14.8 11.3 18.7 
        Textiles 15.7 10.8 5.7 10.4 
        Clothing 30.3 27.2 14.1 17.5 
    ISIC 1 - Agriculture, hunting and fishing 11.9 10.8 10.0 23.2 
    ISIC 2 - Mining 11.8 10.2 6.5 17.7 
    ISIC 3 - Manufacturing 17.7 15.4 11.9 20.0 
    First stage of processing 12.2 10.8 9.3 21.2 
    Semi-processed products 10.9 8.3 6.2 13.6 
    Fully processed products 21.1 18.5 14.5 22.6 
3. Domestic tariff "peaks" (% of all tariff lines)b 0.2 0.0 0.0 0.0 
4. International tariff "peaks" (% of all tariff lines)c 28.1 20.8 9.9 46.7 
5. Overall standard deviation of tariff rates 13.6 11.0 9.2 11.6 
6. Coefficient of variation of  tariff rates 0.8 0.7 0.8 0.6 
7. Duty-free tariff lines (% of all tariff lines) 4.3 5.9 13.7 1.1 
8. Non- ad valorem  tariffs (% of all tariff lines) 0.0 0.0 0.0 0.0 
9 Nuisance applied rates (% of all tariff lines)d 0.1 0.0 0.0 0.0 
.. Not available. 
a Based on 2011 tariff schedule.  Cambodia im plemented its tariff reduction commitments fo r all but 21 tariff lines by 2007.  T ariff 
reduction commitments are to be met for 20 tariff lines by 2013. 
b Domestic tariff peaks are defined as those exceeding three times the overall simple average applied rate. 
c International tariff peaks are defined as those exceeding 15%. 
d Nuisance rates are those greater than zero, but less than or equal to 2%. 
Note: The 2003 tariff is based on HS96 nomen clature, consisting of 6,809 tariff lines ;  the 2005 tariff is based on HS02 nomenc lature, 
 consisting of 10,689 tariff lines;  and the 2011 tariff is ba sed on HS07 nomenclature, consisting of 8,298 tariff lines. 
Source:  WTO Secretariat calculations , based on data provided by the Cambodian authorities. 
(13.7.%)(39.7%)
(36.7%)
(9.9%)
05001,0001,5002,0002,5003,0003,500
Duty free 7% 15% 35%
Percentages in brackets denote the share of total lines.  
WTO Secretariat calculations, based on data provided by the Cambodian authorities.Number of tariff linesChart III.2
Distribution of MFN tariff rates, 2011
Tariff rates
Note:
Source : Cambodia WT/TPR/S/253 
 Page 37 
 
 
 
n.a.n.a.
0.02.55.07.510.012.515.017.520.022.525.0
Food,
beverages and
tobaccoTextiles and
leatherWood and
furniturePaper printing
and publishingChemicals Non-metallic
mineral
productsBasic metals Fabricated
metal productsand machineryOther
manufacturingPer centChart III.3
Tariff escalation by 2-digit ISIC industry, 2011
Average applied rate in manufacturing
(11.9%)First stage of processing Semi-processed Fully processed
Not applicable.
WTO Secretariat calculations, based on data provided by the Cambodian authorities.n.a.
Source :
 
(d) Tariff exemptions 
27. Import duty concessions and exemptions are availa ble to certain types of importers, including 
for temporary imports for re-expor t; goods in transit; personal item s of Cambodians having resided 
abroad; imports by diplomatic missions, for hu manitarian or religious purposes, and for goods 
imported in connection with investment projects approved by the Council for the Development of 
Cambodia in accordance with the Amended Law on I nvestment.  Export qualified investment projects 
(QIPS) are allowed to import production equipment,  construction materials, raw materials, and 
intermediate goods and accessories free from cust oms duty, unless they operate under the customs 
bonded warehouse mechanism. For the QIPs of garment and footwear industries, the Government also 
provides VAT exemptions on these imports. 
28. According to the authorities, about half of im ports entered Cambodia duty and tax exempt in 
the year 2000, and forgone revenue was higher than the customs duty collected.10  This does not 
appear to have changed during the review period with forgone revenue equa lling nearly 60% of the 
customs duties collected (see Table III.2). 
(e) Tariff-rate quotas   
29. At the time of its accession to the WTO, Cambodi a did not apply tariff quotas but noted that it 
might consider these on certain agricultural impor ts in the future. The authorities confirm that, 
currently, there are no tariff-rate quotas in place. 
                                                      
10 Ministry of Commerce (2001), p. 30. WT/TPR/S/253 Trade Policy Review 
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 (f) Preferential tariffs   
30. Together with the other members of ASEAN, Cambodia accepted the Agreement on the 
Common Effective Preferential Tariff  (CEPT) Scheme  for the ASEAN Free Tr ade Area, whereby the 
tariffs applicable to ASEAN products would be re duced to 0-5% over a ten-year period starting 
1 January 2000.  Average preferential tariffs are less than half of the MFN rate for agricultural 
products and around one third of th e MFN rate for non-agricultural products (Table III.4).  Cambodia 
agreed to eliminate tariffs on essentially all ASE AN products by 2015, except for 7% of the tariff 
lines where the tariffs will be eliminated by th e end of 2017. For products  covered by the Sensitive 
List, the maximum tariffs will be set at 5% as of 2018.  There is also a General Exception List for 
which there are no ASEAN-related ta riff preferences. Cambodia is subject to tariff reductions agreed 
in five free-trade agreements (FTAs) signed by ASE AN:  with China, Cambodia's tariff rates will be 
reduced to zero by 2015; with India and the Republ ic of Korea by 2018; with Japan by 2026; and with 
Australia and New Zealand by 2024. 
Table III.4 
Summary analysis of Cambodian's MFN and CEPT tariffs, 2010 
 
No. of lines MFN CEPT 
 Average Range Average Range 
  (%) (%) (%) (%) 
Total 8,298  11.7 0-35  4.5 0-35 
HS 01-24 1,271  15.4 0-35  5.6 0-35 
HS 05-97 7,027  11.1 0-35  4.3 0-35 
By WTO definition        
Agricultural products 1,145  14.5 0-35  5.6 0-35 
   Animals and products thereof 125  26.7 0-35  7.7 0-35 
   Dairy products 35  23.2 7-35  5.0 5 
   Fruit, vegetables, and plants 295  13.5 0-35  6.0 0-35 
   Coffee and tea 40  26.2 7-35  5.0 5 
   Cereals and preparations 152  12.2 0-35  4.4 0-5 
   Oils seeds, fats, oil and their products 181  7.3 0-35  4.6 0-5 
   Sugars and confectionary 28  7.0 7  5.0 5 
   Beverages, spirits and tob acco 104  19.0 7- 35  10.1 5-35 
   Cotton 5  0.0 0  0.0 0 
   Other agricultural products, n.e.s. 180  11.4 0-35  3.7 0-5 
Non-agricultural products  7,153  11.3 0-35  4.3 0-35 
   Fish and fishery products 206  19.3 0-35  5.1 0-15 
   Minerals and metals 1,263  8.2 0-35  3.7 0-5 
   Chemicals and photographic supplies 1,213  7.7 0-35  4.2 0-35 
   Wood, pulp, paper and furniture 381  9.4 0-35  4.9 0-5 
   Textiles 696  5.7 0-35  3.9 0-5 
   Clothing 253  14.1 7-15  5.0 5 
   Leather, rubber, footwear and travel goods 269  14.5 0-35  4.9 0-5 
   Non-electric machinery 1,188  13.0 0-35  4.0 0-15 
   Electric machinery 557  16.5 0-35  4.4 0-5 
   Transport equipment 413  16.6 0-35  4.3 0-5 
   Non-agricultural products, n.e.s. 680  15.2 0-35  5.2 0-35 
Petroleum 34  12.1 0-35  9.6 0-35 
By stage of processing        
First stage of processing 884  9.3 0-35  4.4 0-35 
Semi-processed products 2,165  6.2 0-35  4.0 0-7 
Fully processed products 5,249  14.5 0-35  4.7 0-35 
Source : WTO calculations, based on data provided by the Cambodian authorities.  Cambodia WT/TPR/S/253 
 Page 39 
 
 
 (iii) Customs valuation 
31. At the time of its accession, Cambodia was of the view that a move to the transaction value 
system could pose major risks to government reve nue and therefore proposed that minimum customs 
values be phased out gradually over five years, with full compliance with the Customs Valuation 
Agreement to be achieved by the end of 2008. The ch allenges facing the customs administration at the 
time included a low rate of voluntary compliance by  importers, lack of sound accounting systems and 
record keeping, and the limited capacity of Custom s to administer transaction valuation provisions.  
Cambodia's request for a five-year transitional period granted to allow it to obtain and utilise technical 
assistance to facilitate implementation of the obliga tions of the Agreement.  From 1 January 2009, 
Customs was prepared to implement the first three methods of customs valuation:  transaction value, 
identical goods, and similar goods;  and on 1 January  2011, Cambodia took the final steps necessary 
to fully implement the Agreement. 
32. According to the authorities, the dela y in full implementation was because, inter alia: the 
number of competent officers is limited; the post clearance audit mechanis m was still in its initial 
stage; the compliance level of traders is low ( according to the Traders' Credibility Management 
System); invoices are often undervalued, leading to so me difficulty in applying the transaction value; 
the customs valuation database was developed slow ly, due to lack of technical assistance.   
33. Praka 32 of Cambodia's customs valuation legi slation was a transitional provision providing 
Customs with some flexibility to pr ovide for the use of valuation methods other than those contained 
in the WTO Customs Valuation Agreement for cer tain goods that Cambodia deems as sensitive or 
high risks.  Praka 32 of the MEF Regulation No . 387 (2008), which implements the WTO Customs 
Valuation Agreement allowed the GDCE to use the price-list methods, temporarily, for the valuation 
of certain sensitive items and high risk goods, includ ing used vehicles and other used items as well as 
petroleum products.  These methods were transitiona l and Cambodia has since confirmed that as of 
1 January 2011 it terminated the transitional use of the above methods.11  A complaint procedure and 
appeals process for these valuations is in place.  
34. During the review period, Customs implemente d the WTO Valuation Agreement in paralel 
with the decentralization of customs valuation deci sion-making, and obtained significant early results. 
For example, 50% of dutiable goods were pro cessed using the transaction value. Customs is 
considering whether certain non-dutiable imported goods will be processed at the transaction value, 
such as goods imported by investment companies, exempted importation, temporary imports, and 
goods imported by the Government.   According to the authorities, all imports currently comply with 
WTO valuation methods.  As of June 2011, Cambodia was preparing to submit its checklist of issues 
to the WTO.  
(iv) Preshipment inspection (PSI) 
35. From accession, Cambodia undertook to ensure that the operations of the PSI companies it 
retained would meet WTO requirements12, and that its PSI regime would be temporary and cease 
when Customs could carry out the functions performed by the PSI companies.  Cambodia 
discontinued its service contract with BIVAC Inte rnational of the Bureau Veritas Group for PSI 
                                                      
11 WTO document G/VAL/M/51, p. 3, Statement by Cambodia at the meeting of the Committee on 
Customs Valuation, 12 May 2011. 
12 The Agreement on PSI requires that governments en sure that the PSI entity meet a wide range of 
provisions concerning transparency, treatment of business confidential information, avoidance of conflict of 
interest, prompt inspection, and appeals procedures.  WT/TPR/S/253 Trade Policy Review 
Page 40 
 
 
 services in mid 2009.  The MEF issued a Prakas  in February 2009 (on the establishment and 
functioning of Transaction Value Management Unit under Customs13, setting up a unit that develops 
national customs valuation policies,  implements valuation regulations, provides rulings at the request 
of the private sector, and conducts research on the transaction value of imports. Cambodia notified the 
WTO in 2010 that it no longer has any la ws or regulations in the area of PSI.  
(v) Rules of origin 
36. During accession, Cambodia confirmed that it intended to comply fully with the provisions of 
the WTO Agreement on Rules of Origin in the applic ation of preferential and non-preferential rules of 
origin and would be able to do so after enact ment of a new Customs Law and its implementing 
regulations.  As of January 2011, Cambodia was still in the process of preparing a regulation on rules 
of origin:  the Ministry of Commerce and the Ministry of Economy and Finance were working jointly 
on the draft regulation, which was at an early stage of development. 
37. According to the authorities, applicable duties and taxes on imports are collected according to 
the origin of the goods. The origin of natural prod ucts is the country where they were extracted from 
the soil or harvested. Goods manufactured in a si ngle country, with no contribution from materials 
from another country, originate in the country where they are manufactured.  Customs procedures for determining the origin of goods produced in one country that use products harvested, extracted from 
the soil, or manufactured in another country are dete rmined by prakas of the Minister of Economy and 
Finance. The origin of goods seeking preferential entry from FTA partner countries is determined by 
the certificate of origin issued by the exporting country , in accordance with the agr eed rules of origin.   
The MFN rate is applied to all other goods.  
(vi) Import prohibitions, quotas, and licensing 
38. As part of its accession commitments, Cam bodia eliminated quantitative restrictions on 
imports of fertilizers, pesticides, and other agri cultural inputs, and established a WTO-consistent 
method of registration and review of imported ag ricultural chemicals.  From 1 January 2007, 
Cambodia agreed that it would rely on the provisions of the TBT Agreement to regulate domestic and international trade in these items . From accession, Cambodia agreed not to introduce, re-introduce or 
apply other non-tariff measures such as licensing, quot as, prohibitions, bans and other restrictions 
having equivalent effect that could not be justif ied under the provisions of the WTO Agreements. The 
authorities note that since accession Cambodia has introduced some additional licensing requirements 
as allowed under GATT Article XX(b) for fisheries and live animals.  
39. Goods are prohibited or restricted for any of the following purposes: protection of national 
security; protection of public orde r and standards of decency and morality; protection of human, 
animal or plant life or health;  protection of nati onal treasures of artistic, historic or archaeological 
value; and the conservation of natural resources.  Sub-decree 209 of 2007 (prohibited and restricted 
goods list) identifies 1,537 tariff lines that are subject  to import prohibition or licensing. Much of the 
licensing is automatic and does not restrict impor t quantity or value. Exceptions include some 
narcotics and fish, where quantities are restricted .  Sub-decree 209 provides for import prohibition 
only for metal waste, toxic waste, municipal waste,  clinical waste, sewerage sludge, and waste of 
animal hairs.  
                                                      
13 The transaction valuation unit is responsible for supervising the interpretation of the WTO Valuation 
Agreement in Cambodia, keeping the valuation legislation updated, providing valuation training to customs 
officials, updating the customs valuation list for products on a monthly basis; and considering importers' appeals 
against valuation decisions taken by customs officers or dealing with more difficult cases of valuation.   Cambodia WT/TPR/S/253 
 Page 41 
 
 
 40. Cambodia currently prohibits the commercial im portation of certain narcotics; psychotropic 
substances and their precursors, toxic waste and poisonous chemicals;  and substances and certain 
pesticides in accordance with toxici ty classification by WHO.  Government regulations also prohibit 
the importation of used computers and spare parts, household waste, and hazardous waste. 
41. A limited licensing system had been established for the protection of human health, consumer 
interests, national security, and to protect the environment.14  The import licensing regime for 
chemicals  is administered by the Institute of Standards of Cambodia, an organ of the Ministry of 
Industry, Mines and Energy. The system is design ed to help maintain the orderly marketing of 
chemicals in Cambodia:  it may result in limitations  on some imports. The intent is to reduce the 
presence of dangerous chemical substances for which proper controls are difficult and storage facilities are limited. For these products, the system operates by assessing current legitimate import needs of Cambodian firms using chemicals or chem ical products, and ensuring that those needs are 
met.  
42. The import licensing regime for pharmaceuticals, medical materials, and narcotics and related 
substances is administered by the Ministry of Hea lth and, with respect to their use for agricultural 
purposes, by the MAFF.  Its purpose is to protect human health and animal and plant health.  The 
authorities note that the import licensing of pharmaceuticals and medical materials does not restrict the quantity or value of imports. 
(vii) Anti-dumping, countervailing duties, safeguard regimes 
43. During accession, Cambodia confirmed that it would not appl y any anti-dumping, 
countervailing or safeguard measure until it had no tified and implemented appropriate laws and 
regulations in conformity with the provisions of  the relevant WTO Agreements. In 2009, with donor 
assistance, Cambodia began the task of drafting trade remedies legislation. The current, single draft law, encompasses anti-dumping and safeguard measures, and allows for the later preparation of a sub-
decree dealing with countervailing measures.  The dr aft is being reviewed by an inter-ministerial 
drafting group and this process is expected  to be completed by the end of 2011. 
44. According to the authorities, the draft la w on trade remedies follows closely the WTO 
safeguards and anti-dumping agreements.  It spells  out procedures for identifying dumping and for 
establishing normal values, export prices, and dumping ma rgins. It also deals in detail with procedures 
for the conduct of anti-dumping investigations, incl uding the determination of material injury and a 
causal link, and for establishing and reviewing anti- dumping duties. As regards safeguards, the draft 
defines serious injury and the threat thereof and causation. It spells out procedures for initiating and 
conducting safeguard investigations and applying safe guard measures. The draft text also deals with 
confidentiality, access by the public to informa tion, and other requirements of the two WTO 
agreements. 
(viii) Government procurement 
(a) Legal and institutional framework 
45. Until 2006, Cambodia's government procurement regime was governed by  a 1995 sub-decree, 
and guidelines that did not cover all relevant asp ects of public procurement.  Cambodia replaced the 
1995 legislation by Sub-decree No. 105 (2006) and enforced updated implementation rules for public 
                                                      
14 Notification pursuant to Article 7.3 of the Agreement on Import Licensing Procedures in WTO 
document G/LIC/N/3/KHM/1, 23 November 2010.  WT/TPR/S/253 Trade Policy Review 
Page 42 
 
 
 procurement as provided under Prakas 381 (2010). Moreover, the Government has prepared a 
preliminary draft procurement law, which is currently  the subject of a public consultation process with 
a view to submitting a complete draft law to the Council of Ministers in 2011. Until recently, some 
guidance for externally funded projects was pr ovided through manuals on standard operating 
procedures. The procurement regulations apply to procurement at all stat e levels and to public 
enterprises. They assign bodies responsible for procur ement and define certain procurement methods.   
46. In the MEF, the main bodies controlling public procurement are the Department of Public 
Procurement and the Department of Investment and Cooperation (which oversees procurements with 
funds from international financing agencies a nd bilateral donors). The procurement process is 
conducted by prequalification, evaluation, and aw ards committees established within the procuring 
entities. Politically or environmentally sensitiv e purchases require approval by the Council of 
Ministers on the basis of recommendations formulated by the Ministry of Economics and Finance.   
47. Cambodia is not a party to, and has not consider ed membership of, the Plurilateral Agreement 
on Government Procurement. 
(b) Procurement methods and procedures  
48. The procurement regulations (Prakas 381 of 20 10) provide for competitive bidding, domestic 
canvassing, direct shopping, and direct contracting.  The selection of the applicable method depends 
on the value of the goods or services:  competitiv e bidding is mandatory for the purchase of goods, 
services or works worth more than US$25,000.  Urge nt need or procurement after natural disasters, 
however, justify the use of non-competitive proc urement methods such as direct contracting, 
regardless of the value of the contract.  
49. Procurement through competitive bidding must be advertised publicly  through newspapers 
and the recently expanded MEF website, which provides public access to bidding documents. 
However, difficulties in this context may still ari se from the poor information   infrastructure.  In 
addition, for construction, only bidders registered with the Department for Public Procurement are 
permitted to participate in the tende ring, and certain prequalification procedures exist at the provincial 
level.  Pre-bid conferences that have merits in clarifying the requirements, in particular for more 
complex purchases, are provided for under prakas 381, but few conferences have been held.   
50. The previous regulatory regime resulted in di verse procedures that rendered transparent and 
effective management of the procurement process di fficult for both bidders and procuring agencies. 
Lack of training of procurement personnel and of eq uipment for the efficient and reliable handling of 
procurement processes added to this difficulty. Until recently, Cambodia did not have comprehensive 
codes of conduct, and the regulations  that contained provisions on conf lict of interest were not fully 
enforced. Previously, the winning bidder had to ex plicitly declare that no bribes had been paid to 
procurement personnel or any competing bidder. In  its annexes, prakas 381 provides a Code of 
Professional Ethics for all members of the procurement committee, procurement officials, bidders, and others involved in public procurement.  The new framework also provides for a review 
committee, annual procurement plan, review of pr ocurement decisions, and penalty and punishment 
provisions. Moreover, the newly established Anti-Co rruption Unit of the Government may consider 
complaints about the bidding processes and decisions.
15  The authorities note that, according to a 
recent assessment of Cambodia's public procurem ent system carried out by the World Bank, 
Cambodia substantially met half of the baseline el ements of a good public procurement system.   
                                                      
15 See also the ADB/OECD (Undated). Cambodia WT/TPR/S/253 
 Page 43 
 
 
 (ix) State trading enterprises (STEs) 
51. At the time of Cambodia's WTO "state-owned companies were engaged in the import and 
export of rice, rubber, fertilizer, fishery pro ducts, pharmaceutical products, and agricultural 
equipment. The enterprises operated in accordance with commercial considerations and private 
business practices, and received no special privileges.  In the authorities' view, none of the STEs came 
within the scope of Article XVII of the GATT 1994 (or the Understanding on the Interpretation of 
Article XVII of the General Agreement on Tariffs  and Trade 1994).  Following a programme of 
divestment, the Green Trade Comp any remains the only state-owned enterprise involved in the goods 
import and export. 
52. The recent STE landscape may be summarized as follows:  (i)  The Green Trade Company, 
established in 1998, managed Cambodia's national r eserve of rice through purchases and sales made at 
market prices.  The GTC was subject to technical supervision by the MoC and financial supervision 
by the MEF.  It established a food reserve system to mitigate food shortages. Following the global food price increases in 2008, the government re leased quantities of rice through the GTC to ease 
supplies, and increased financing by US$10 million fo r food reserves. In 2009, GTC was involved in 
establishing a joint company, the Cambodia-Vietna m Foods Company, which specializes in the 
production, procurement, transportation, processi ng and storage and import and export of food.  
(ii) The Agricultural Inputs Company (AIC), established in 1999 and liquidated and dissolved 
in 2008, was managed by officials from the MAFF, MEF and MoC.  It engaged in importation, purchase and sale of agricultural products (fertilizer , pesticides, seeds and agricultural equipment), 
warehousing and managing the distri bution of donated fertilizers and agricultural inputs, administered 
statistical data, and participated in training progra mmes and research.  (iii)  Seven rubber plantations 
were being transformed into public enterpri ses under the MAFF in 1999.  In 2008, each rubber 
plantation was restructured whereby the Government  maintained ownership of the land but entered 
into a 99-year leased land agreement with a private oper ator, subject to an annual user fee per hectare. 
(x) Other measures  
53. Cambodia undertook not to maintain any measur es inconsistent with the Agreement on 
Trade-Related Investment Measures (TRIMs) and to  apply the Agreement from the date of accession 
without recourse to any transitional period. 
54. Cambodia has specific regulations related to trade in transit that were developed to implement 
transit agreements with neighbouring countries. The re gulations are: Articles 9, 13, and 25 of the Law 
on Customs; MEF prakas 508 (2008) on Customs Tr ansit; and Customs Instruction No. 790 (2008) on 
Customs Transit Procedures. 
(3) M
EASURES DIRECTLY AFFECTING EXPORTS  
(i) Procedures 
55. Export (and import) procedures are laid out in  Sub-Decree 131 (2006). According to the 
authorities, all goods to be exported must be re ported at a customs office or other location as 
determined by the DGCE. The Minister of Economy a nd Finance may, by prakas, determine the time, 
manner, documentation requirements, circumstances,  and exceptions with respect to the reporting, 
movement, storage, and transportati on of goods to be exported.   WT/TPR/S/253 Trade Policy Review 
Page 44 
 
 
 56. All exports must be examined by Customs and Camcontrol. Goods are released when 
documents are approved, the export tax (if any) is  paid, and the examination completed. An Export 
Office at Customs Headquarters takes charge of garment exports, which ex amines and seals the cargo 
with a container bolt seal (at factory premises) that  conforms to international standards. Once they 
reach Sihanoukville Port, documents and the containe r seal are checked by Customs before loading on 
vessels.  Customs charges a fee of Riels 15,000 for each export declaration and the Camcontrol fee is 
0.1% of the f.o.b. value of exports a nd 0.1% of the c.i.f. value of imports. 
(ii) Export taxes 
57. A number of exported goods are subject to taxes: natural rubber; uncut (unprocessed) 
precious stones; processed wood;  and fish and crustaceans, molluscs and other aquatic products 
(Table III.1). Cambodia levies export taxes on cer tain unprocessed raw materials and products to 
encourage local processing, encourage exports of finished products, and protect human health.  
Cambodia's export duties are applied on an MFN basi s and hence its ASEAN partners are  not exempt 
from these taxes.  Export taxes accounted for approx imately 2% of the customs revenue collected by 
Customs in 2000 and less than 0.5% currently. 
(iii) Export restrictions  
(a) Prohibitions  
58. Several items are prohibited from export or strictly restricted, including antiques, certain 
narcotic and toxic materials, logs, pr ecious metals and stones, and weapons.16  Prohibited exports 
from natural forests comprise:  round logs; crude or  rough sawn timber; squared logs with a thickness 
or width of more than 25 cm; oil extracted fro m yellow vine; yellow vine powder; firewood and 
charcoal.  The export of wood and wood products de rived from man-made forests is not subject to 
restrictions, although a licence is needed. Prohibitions apply to any fish species mentioned on the 
CITES list of endangered species as provided for in Sub-Decree No. 123 (2009).   
(b) Licensing 
59. Exporters must provide additional document ation for items that the Government has 
determined to be sensitive or that are monitore d for trade purposes (Table III.5).  Certain wood 
products from natural forests and other agricultural products require an export licence;  the objective 
is to control the volume of such exports.  To obtain an export licence the applicant submits an application to MAFF, along with the usual supporti ng documentation, and documentary evidence that 
the products are from legal sources.  The Forestry Administration examines the application and makes a recommendation to MAFF, which in turn makes a recommendation to the cabinet of the Council of 
Ministers, which grants an export quota to the appli cant.  The quota is valid for one year, and may be 
renewed.  After receiving a quota, the applicant may apply for an export licence from the Ministry of 
Commerce. A licence is required for each export tr ansaction within the quota. The export licence is 
made out to the Forestry Administration, which is the sole entity authorized to export wood and wood 
products, and which exports the goods on behalf of the applicant.  The applicant must also secure a 
transportation permit from the Forestry Administration to transport goods to export points.  According 
to the authorities, these procedures conform to GAT T Article XX(g), which allows trade measures to 
                                                      
16 Annex 1, Sub-Decree No. 209 AN K.BK, 31 December 2007 (List of Prohibited and Restricted goods 
in Importation and Exportation). Cambodia WT/TPR/S/253 
 Page 45 
 
 
 be taken to preserve exhaustible natural resour ces, when such measures complement domestic 
conservation policies. 
Table III.5 
Export licences, permits, and certificates 
Type of goods Documentation Government authority 
Unprocessed rubber - Export licence (valid 60 da ys) - Ministry of Commerce, Bilateral Trade 
Department 
Processed wood and non-timber forest 
products - Export licence (valid 60 days) 
- Permit letter - Ministry of Commerce 
- Ministry of Agriculture, Forestry and 
Fisheries 
- Council of Ministers 
Sand Export permit  - Inter-ministerial committee  
Raw fruit, vegetables, plants and 
agricultural materials (includes pesticides, 
fertilizers, seed, and seedling materials, 
feed additives) - SPS certification - Ministry of Agriculture, Forestry and 
Fisheries 
Garments - Certificate of origin (valid 6 months) - Ministry of Commerce 
Drugs and medicines - Certificate, Ministry of Health (valid 
5 years) - Ministry of Health 
Live animals - Animal health or CITES certificate (valid 
 5 years) - Ministry of Agriculture, Forestry and 
Fisheries 
Art and cultural products - Authorization 
- Permit letter (valid 1 year) - Ministry of Culture and Fine Arts 
Fish, crustaceans, molluscs, and other 
aquatic products - Transportation permit letter 
- Certificate of aquatic animal health  - Ministry of Commerce 
- Fisheries Administration (MAFF)  
Jewellery, silverware and uncut or 
unprocessed precious stones - Permit letter (valid 1 year ) - National Bank of Cambodia 
Source: International Finance Corporation (IFC) (2008), Handbook on Export Procedures .  Viewed at: h ttp://www.ifc.org/ 
ifcext/mekongpsdf.nsf/Attachment sByTitle/Handbook-Export-Prodcedure-Eng/$FILE/Handbook-Export-
Prodcedure-Eng.pdf. 
60. Exports of medicines and narcotics produced in  Cambodia require an export licence issued by 
the Department of Drugs and Food, Ministry of Health, and MAFF for veteri nary medicinal products. 
Export licensing is maintained and statutorily required under the Law on Amending the Law on Drug 
Management (2007), Praka 300, 363, and 754 (2007) and Prakas 1031 as amended by Prakas 82 on 
Drug Import-Export Procedures (2008).  Cambodia has joined the WHO Certification Scheme on the 
Quality of Pharmaceutical Products Moving in In ternational Commerce, and is in the process of 
taking the steps necessary to issu e certificates under the scheme.  
(iv) Export subsidies 
61. Upon Cambodia's accession, the Government  undertook to bind its agricultural export 
subsidies at zero in its Schedule of Concessions and Commitments on Goods, and not to maintain or 
apply any export subsidies for agricultural products. 
62. The authorities confirm that Cambodia has no export subsidies.  
(v) Export promotion 
63. The main entity to promote Cambodian exports is the Trade Promotion Department (TPD) of 
the MoC, which undertakes a range of activities to support actual and potential Cambodian exporters.  
It  initiates, organizes, and participates in domestic  and overseas trade fairs, and provides assistance to 
local companies wishing to organize and/or participat e in such fairs.  It also works with Cambodia's 
overseas trade missions to identify possible oversea s markets and develop strategies for penetrating WT/TPR/S/253 Trade Policy Review 
Page 46 
 
 
 those markets.  Its website contains a list of products whose producers are seeking foreign markets, 
and it established and manages the Electronic Market Communication System, which provides 
information on prices, trades, buyers, and sellers.  TPD is also a counterpart to various development 
partners and international orga nizations in implementing trade promotion programmes.    
64. With assistance from the World Bank, the Govern ment has set up the Export Market Access 
Fund (EMAF) to help registered Cambodian firms in  their efforts to penetrate foreign markets. The 
EMAF, which was not yet operational in June 2011,  is to provide both fi nancial and technical 
assistance. It will provide co-financing (up to 50%) in  the form of cash grants for eligible activities, 
with a ceiling of US$30,000.  Eligible activiti es include investigating export markets; product 
adaptation to meet export-market  requirements; and product promotion. EMAF will also provide 
Cambodian businesses with links to international a nd national experts to s upport export development, 
planning, and execution.  Dedicated specialists w ill be made available to help applicants secure 
EMAF funding and to support export marketing activities.  
65. In addition to direct assistance, the Government has taken steps to give Cambodian products a 
competitive advantage over similar products of othe r countries.  For example, the Better Factories 
Programme establishes a system for the regular moni toring of work conditions in individual factories, 
through unannounced visits, and worker and manageme nt interviews. The results of the monitoring 
are made available to the factories, including  recommendations for improving work conditions. These 
reports are subsequently posted on a website, where they may be examined by buyers.  The MoC 
enforces this programme by requiring the participation of all factories seeking an export certificate of 
Cambodian origin.  Only factories that are register ed with the Ministry may export, and the condition 
for registration is membership in the Garment Manufacturers Association of Cambodia and in the 
Better Factories Programme. 
(vi) Special economic zones  
66. In December 2005, the Council of Ministers passed a sub-decree (No. 148) on the 
establishment and management of special economic zones to speed up the creation of these zones. The sub-decree details procedures, conditions, an d incentives for investors in the zone.  The 
Cambodia Special Economic Zones Board has approve d 22 SEZs (January 2011), of which 14 have 
been established but only 5 are operational (Table III.6);  these are located near the borders of 
Thailand and Viet Nam, and in Phnom  Penh, Kampot, and Sihanoukville. 
67. To facilitate development, Cambodia is inter ested in increasing exports via geographically 
defined special economic zones (SEZs), with the goal  of attracting foreign direct investment.   The 
Government is preparing a Law on Special Economic Zones, which will define SEZs and establish the 
rules under which they operate.
17  The law may be submitted for approval by the Council of Ministers 
by the end of 2011.  The authorities confirm that the draft Law contains no export-performance measures or local-content requirements. 
68. The fiscal regime of Cambodia's SEZs is governed  by the same incentiv es as those stipulated 
in the revised Law on Investment. In this regard Cambodia follows the international best practice of 
                                                      
17 At the time of accession, Cambodia agreed that S EZs established in accordance with the Law on 
Investment would be subject to the coverage of WTO Agreements and its commitments in its Protocol of 
Accession to the WTO Agreement, and that Cambodia would ensure enforcement of its WTO obligations in those zones.  In addition, goods produced in any such zone s or areas under tax and tariff provisions that exempt 
imports and imported inputs from tariffs and certain taxes would be subject to normal customs formalities when 
entering the rest of Cambodia, including the application of tariffs and taxes. Cambodia WT/TPR/S/253 
 Page 47 
 
 
 avoiding different tax incentives for firms located in SEZs.  Cambodia offers a choice of either a 
special depreciation allowance or a tax holiday. Regarding indirect incentives, Cambodia provides 
total exemption from import duties and VAT for qualifying investment projects whose output is 
essentially for export, but also for firms supplying th e garment and footwear industries (Table III.7). 
Overall, according to the IMF, in terms of durati on of tax holidays and terms of eligibility for direct 
and indirect tax exemptions, investment incentives in  Cambodia appear to be as attractive as those 
provided in neighbouring countries.18 
Table III.6 
Cambodia's special economic zones (SEZ-s) 
 Name of SEZ  Status Main industries 
1 Manhattan SEZ In operation Textiles, shoes, bicycles  
2 Tai Seng Bavet SEZ In operation Garments, textiles 
3 Phnom Penh SEZ In operation Garments, plastic s, carton boxes, food processing, electrical 
equipment 
4 Sihanoukville SEZ In operation Garmen ts, plastics, household appliances 
5 Goldfame Pak Shun SEZ In operation Garments, plastics 
6 Sihanoukville Port SEZ Under construction .. 
7 Neang Kok Koh Kong SEZ Under construction .. 
8 Stung Hao SEZ Under construction .. 
9 Poi Pet O’Neang SEZ Under construction .. 
10 Duong Chhiv Phnom Den SE Z Under construction .. 
11 Kampot SEZ Under construction .. 
12 Sihanoukville 1 SEZ Under construction .. 
13 Thary Kampong Cham SEZ Under construction .. 
14 Kirisakor Koh Kong SEZ Under construction .. 
15 Suoy Chheng SEZ No operations .. 
16 S.N.C SEZ No operations .. 
17 N.L.C SEZ No operations .. 
18 Oknha Mong SEZ No operations .. 
19 D & M Bavet SEZ No operations .. 
20 Kampong Soam SEZ No operations .. 
21 P (SEZ) I.C No operations .. 
22 Stung Hao SEZ & International Port No operations .. 
.. Not available. 
Source: Cambodia authorities. 
69. Well-developed, effective SEZs can be a key to attracting investment in a number of the 
export potential product sectors identified in DTIS 2007, including light manufacturing assembly and 
agri-processing.  Accordingly, deepening the su ccessful implementation of a number of special 
economic zones should rank high on Cambodia's list of priorities.  The design of Cambodia's SEZ regime incorporates lessons learnt from successful  zones elsewhere, including the central role of 
private developers (rather than the government ) and the focus on attracting a variety of business 
activities, not just export processing.  All 22 approved SEZ projects are developed by private developers. To attract more investors, the pr ivate developers need to provide enough quality 
infrastructure and other facilities such as power, clean water, and 24-hour security. 
                                                      
18 IMF(2006), p. 10.  However, withholding tax provis ions make the profit tax holiday rather complex 
in reality.  WT/TPR/S/253 Trade Policy Review 
Page 48 
 
 
 Table III.7 
Incentives under the Law on Investment, 1994 and 2003 
 Law on Investment 
1994 2003 
Profit tax    
1. Standard CIT 
 (for legal persons) 20% - 20% 
2. Other income taxes 
 (personal income tax)  - Progressive rate from 0-20% depending 
on amount of taxable profits 
Tax incentives   
1. Sectors, geographical areas, and 
 labour qualified for incentives Pioneer or high-tech, job creation, export, 
tourism, agri- and processing, infrastructure, 
energy, rural development, environment, and 
special economic zone (SEZ) Pioneer or high-tech, job creation, export, 
tourism, agri- and processing, infrastructure, 
energy, rural development, environment, and 
SEZ 
2. Tax holidays Holiday not limited by commencement of 
operations 
Holiday not limited by sales taking place Up to 8 years from the last day of the tax year 
immediately preceding the tax year in which 
profits are first derived 
5-year loss carry forward Holiday not limited by commencement of 
operations 
Either 6 or 9 years starting in first year of 
sales 
Or 3-6 years from the last day of the tax year 
immediately preceding the tax year in which profits are first derived 
5-year loss carry forward 
3. Reduced CIT after tax holiday 
period or incentives provided instead of a tax holiday After tax holiday: 
- 9%;  and - 0% if profits reinvested 
Instead of tax holiday: 
- Immediate expansion of plant and 
equipment investment financed from 
reinvested profits as an alternative to the 
tax holiday After tax holiday: 
- 9% (QIP) for 5 years (starting from the 
tax year occurring after 2003 Law 
promulgation) and 20% thereafter 
Instead of tax holiday: - 40% special depreciation for QIP not 
using tax holiday period 
4. Import duties and VAT  exemptions 100% on inputs for qualified sectors - 100% on inputs for qualified sectors 
- VAT exemption on both inputs and sales 
of supporting industries (their contractors receive only VAT exemption on sales) to 
export-oriented garment and footwear 
sectors. 
Source:  Cambodian authorities. 
(4) MEASURES AFFECTING PRODUCTION AND TRADE  
(i) Regulatory framework  
(a) Business registration and start-ups 
70. The Prakas on Trading Activities of Commercia l Companies (2000) allows Cambodian and 
foreign companies that are register ed with the MoC to engage freely in trading activities.  The Law on 
Commercial Regulations and the Commercial Regist er of 1995 (as amended in 1999) requires all 
commercial enterprises operating in Cambodia to regi ster with the MoC. Commercial enterprises may 
register in the form of a sole proprietorship, gene ral partnership, limited pa rtnership, private limited 
company, single member private limited company,  public limited company, public institution, state 
enterprise, or joint venture.  Natural persons per se  may not engage in import activities as the Law on 
Commercial Regulations and the Commercial Register  allow registration of legal entities only.  
However, an individual may register, for example, as a single shareholder limited liability company. All properly registered firms, foreign and domestic , may engage in import and export activities of all Cambodia WT/TPR/S/253 
 Page 49 
 
 
 types of goods except military equipment and narcotic  drugs.  Trade in forestry products may only be 
conducted by licensed concessionair es (domestic or foreign).  
71. The 2005 Law on Commercial Enterprise, the first comprehensive company law in 
Cambodia, was enacted to streamline the process of registering and starting a business.  According to 
the World Bank, this reduced the official fees for registration (from US$600 to US$105 as of 
August 2007). All fees are posted at the Ministry  of Commerce, which has developed a handbook on 
commercial registration.19  Nevertheless, the World Bank ranks Cambodia at only 170th out of 
183 countries, as starting a business requires 9 proce dures, takes 85 days, and is estimated to cost 
128% of income per capita.20  
72. Overall, there are no limits on the rights of foreign and domestic entities to establish and own 
business enterprises or to compete with public ente rprises. However, the Constitution provides that 
only Cambodian citizens or legal entities have the right to own land. A new law allowing foreign 
ownership of properties such as apartments  and condominiums was passed in 2010.  
(b) Industrial policy  
73. The Ministry of Industry, Mines and Energy  is responsible for the development and 
implementation of Cambodia's industrial policy.  A ccording to the authorities, the main objective of 
Cambodia's industrial policy has been to stimulate economic development by enhancing access to 
international markets and strengthening the industria l base.  Efforts have focused on building up light 
industries and developing agri-manufacturing and food-processing enterprises to sustain the agriculture sector.  Measures have been taken to improve infrastructure for transportation and communication, encourage private and foreign di rect investment through the adoption of an 
appropriate legal framework and the privatization of state-owned enterprises, and to promote the 
development of special economic zones.  As noted a bove, to facilitate the country's development, the 
Government has shown sustained interest in in creasing exports via geographically defined special 
economic zones with the goal of attracting FDI. The authorities maintain that the zones are still at an 
early stage of development and that their contributio n to Cambodia's exports is modest but growing.  
Cambodia does not grant any subsidies as defined in the WTO Subsidies Agreement within the 
framework of its industrial policy. 
74. According to the World Bank, Cambodia's current set of tax holidays is unlikely to be cost-
effective;  at an estimated 6% of GDP, th ey exceed half of total revenue collections.
21  It is unclear 
how necessary these incentives are given Cambodia's low tax burden, and the current scheme may 
provide the wrong incentives, favouring short-lived assets rather than incremental investments that 
could be significant for productivity and diversifica tion.  On the other hand, the exemption of import 
duties and VAT on inputs used for manufactured expor ts appears to be an appropriately targeted 
policy.   
(c) Privatization 
75. The privatization process started in late 1989 a nd by the end of 2000, 167 state companies had 
been privatized;  139 were leased to the private sector, 12 transformed into joint ventures, 8 sold 
outright, and 8 liquidated.  According to the Worl d Bank, there were no privatizations between 2000 
                                                      
19 World Bank and International Finance Corporation (2009), p. 35. 
20 World Bank (2010b). 
21 World Bank (2009), p. 87. WT/TPR/S/253 Trade Policy Review 
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 and 2007.  Since 2007, 13 SOEs have been involved in the divestment programme: the Royal 
Railways of Cambodia was put into a lease agreement22; seven rubber plantations were placed in 
99-year lease agreements; the Agricultural Input s Company and Fishery Company were liquidated 
and dissolved; two companies – Camintel and th e Cambodia Pharmaceutical  Enterprise – were 
completely privatized, and the insurance co mpany Caminco was partly privatized.   
76. Cambodia now has only a few state-owned enterprises (SOEs) and three joint-venture 
enterprises;  the Government has a majority state holding in one of  the joint ventures.  The SOEs 
include Phnom Penh Water Supply, the EDC, the Rural Development Bank, and the three joint-
venture companies are the insura nce company Caminco (25% government share);  the reinsurance 
company Kampuchea-Re (80%) government share;  and the Foreign Trade Bank of Cambodia (10% 
government share).  The Government is represented by one board member on the board of directors of 
each of the joint ventures.  The SOEs are under the supervision of certain line ministries or 
government institutions and are overseen by boards of directors drawn from among senior government officials. The Law on Audit (2000)  established the National Audit Authority and 
empowers the Auditor General to conduct audits of  state-owned enterprises, focussing primarily on 
compliance with rules governing SOE financial ma nagement. Limited info rmation is available 
publicly on the financial position and pe rformance of state-owned enterprises. 
77. Private enterprises are allowed to compete unde r the same terms and conditions, with public 
enterprises, which in general are not entitled to speci al trading rights or privileges. However, certain 
laws and regulations reserve special rights for th e state to monopolize various services, including the 
Electricity Law, which provides special privileges fo r power transmission by the electricity utility to 
the distribution companies and bulk power consumers. 
78. A large part of the private sector, mostly consisting of small and medium-sized enterprises 
concentrated in food, beverage, and tobacco manuf acturing, operates informally and is effectively 
stuck in low-productivity operations.  Recognizing  the need to develop a supportive regulatory 
environment, the Government has set up an inter-m inisterial body, the Private Sector Development 
Steering Committee, comprising three sub-committees on investment climate, trade development, and 
SMEs.  
(d) Competition 
79. Cambodia's Protocol of Accession contains no specific commitments on competition law but 
a number of related commitments have competition-re lated dimensions, such as: transparency of the 
privatization programme; price controls; state-trad ing entities; and intellectual property rights.  
Regarding IPRs, acts of unfair competition are pr ohibited under the Trademark Law. Any act of 
competition contrary to "honest practices" in busin ess is prohibited. The law lists three types of 
behaviour as specifically, but non-exclusively, forbidde n:  (i) all acts that create confusion with the 
establishment, the goods, or services of a competitor;  (ii) false allegations that discredit a competitor's 
goods or services; and (iii) indications or allegations  that are liable to mislead the public as to the 
nature, manufacturing process, characteristics, suitability, or quantity of goods. 
80. While Cambodia is an open economy with limit ed SOE presence, some observers have noted 
creeping regulatory restrictions on competiti on in domestic markets;  these concern, inter alia,  recent 
                                                      
22 The Government completed a concession agreement with Toll Royal railway, a joint venture 
between the Australian Toll Group and the Cambodian Royal group.   Cambodia WT/TPR/S/253 
 Page 51 
 
 
 decisions restricting price competition in the mobile phone sector.23  The Government is in the process 
of drafting laws and regulations that establish the framework for its market economy and has been 
engaged in efforts to adopt a competition law for some time.  
81. The Ministry of Commerce finalized the terms of  reference of a competition working group in 
May 2010 to oversee the completion of the draft la w for submission to the Council of Ministers. 
According to the authorities, the  main purpose of the draft law is to establish competition rules, 
institutions, and procedures that promote and prot ect the benefits of a competitive market economy 
for producers and consumers. Within its ASE AN commitments, Cambodia is aiming to enforce a 
competition law by 2015. In recognition of the time needed to build national understanding of 
competition concepts and to train qualified and e xperienced personnel in Cambodia, consideration 
will be given to providing for transiti onal enforcement provisions in the law. 
(ii) Technical barriers to trade  
(a) Overview 
82. The ability to comply with standards in overseas  markets is a major factor determining access 
to those markets and more broadly the capacity to ex port. This is true both for mandatory regulations, 
set by governments to meet their objectives on hea lth, safety, and the environment, and for market-
driven voluntary standards, set within the priv ate sector, to reflect the demands and tastes of 
consumers or the requirements of supply chains.   
83. In acceding to the WTO, Cambodia committed itself to bring its trade regime into compliance 
with the WTO Agreements, including  in the area of TBTs and for this purpose drew up an action plan 
for implementing the TBT Agreement.24 The plan highlighted the need to upgrade in particular the 
standards, technical regulations, metrology and conformity assessment capacity, as well as the 
establishment of a TBT enquiry point.  
(b) Regulatory framework  
84. The 2007 Law on Standards of Cambodia is the legal basis for all measures related to 
standards and technical regulations.25  Prior to the 2007 Law on Standards,  standards activity was 
regulated by the 2002 Sub-Decree No. 12 on the management of standard ization and technical 
regulations,  and  conducted through the Department of Industrial Standards in the Ministry of 
Industry, Mining and Energy (MIME).  The 2007 La w, like the WTO-TBT Agreement, covers all 
industrial and agricultural products, but exclud es from its coverage provisions on SPS measures.26  
                                                      
 23 ADB (2010). 
24 Document WT/ACC/KHM/14/Rev.1 of 3 March 2003.  
25 WTO document G/TBT/2/Add.103, 12 July 2010 .  For t he text of the law, see ISC online 
information.  Viewed at:  http://www.isc.gov.kh. 
26 Other relevant legislation includes:  the Law on the Control of Drugs (2005);  Sub-Decree No. 209 
(2007) on the permission of use of a list of prohibited goods and regulated goods;  Sub-Decree No. 180 (2009) 
on management of classification and labelling of chemicals;  Technical Regulation No. 276 (2008) on the soy sauce being sold and circulated in Cambodia;  Techni cal Regulation No. 110 (2004) on management and control 
of use, importation, exportation and distribution of chemical substances in industrial fields; and the Law on 
Metrology (2009).
 WT/TPR/S/253 Trade Policy Review 
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 85. The definition of standards27 in the law may not comply with that required under the WTO 
Agreement and makes almost no reference to technical regulations or to the Code of Good Practice.  
The Cambodian authorities acknowledge that there is a need to re-examine parts of the law and, if 
necessary, revise them. 
(c) Institute of Standards of Cambodia  
86. The 2007 law established the Institute of Sta ndards of Cambodia (ISC) within MIME to 
supersede the Department of I ndustrial Standards of Cambodia.  Sub-Decree No. 62 (2008) on the 
organization and functioning of the In stitute of Standards of Cambodia describes the main activities of 
the ISC, which are to: (i) research into and set natio nal standards;  (ii) certify products or companies 
on standards compliance for both products and syst ems;  (iii) disseminate standards and create 
awareness;  (iv) work with international bodies to achieve internationa l recognition of national 
standards and gain accreditation for national conformity assessments;  and (v) license, regulate or 
revoke product and systems certifica tions. ISC consists of four depart ments:  Information;  Standards 
Development,  Training and Consultancy;  Certifi cation;  and Regulatory and Accreditation.  In line 
with WTO requirements, the ISC acts as the national enquiry point (NEP) for Cambodia, and as the notification authority.  According to the authoriti es, the ISC website has been upgraded and improved 
to handle NEP functions, and ISC has begun the process of notifying existing or new technical 
regulations to the WTO.
28  
Standards development 
87. The ISC serves as the secretariat of the Nationa l Standards Council and is responsible for 
developping and issuing standards, including food standards based on Codex standards.  Currently 
there are 71 Cambodian standards, mainly on foods, electrical appliances, and tools.29  I S C  i s  
beginning to develop standards for laboratory analysis techniques for the identification of heavy 
metals and trace elements, and microbiological laborat ory techniques.  In practice, Cambodia uses the 
ISO/IEC guide 21-1 and 2:2005 as a national guide to adopt international standards as national 
standards or technical regulations.   
88. Cambodia maintains its policy and practical appr oach of adopting international standards as 
Cambodian standards or technical regulations wh ere appropriate and app licable for its economic 
situation.  Cambodia will notify its adoption of Annex-3 of the WTO/TBT Agreement, Code of Good Practice. 
89. Under the ISC's standards development process, th e draft begins in a technical working group 
then goes to a technical Committee. The draft is p ublished for a 60-day public comment period before 
submission to the National Standards Council for appr oval as a final draft standard. The final draft is 
submitted to the Minister at MIME for signature and official endorsement as a Cambodian Standard.   
At present, few Cambodian processing companies unde rstand the relevance of using standards, or 
their use as a marketing and sales tools. 
                                                      
 27 The DTIS recommended that existing prakas and so-called "compulsory standards" need to be 
reviewed for compliance with WTO-TBT rules on technical regulations.  
28 In 2010, three notifications were sent to the WTO: Industrial Standards of Cambodia CS 0051:2005 
Chilli sauce; Ministerial Regulation No. 963 on the Registration of Industrial Products; and Ministerial 
regulation No. 1045 on the Labelling of Food Products.  
29 See ISC online information.  Viewed at:  webs ite at: www.isc.gov.kh.  In comparison to Thai 
Industrial Standards Institute, which has now elaborated over 2,700 standards. Cambodia WT/TPR/S/253 
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 Conformity assessment and a ccreditation of certification bodies 
90. The ISC has the role of elaborating, coordina ting, revising, culling, amending, reissuing, 
interpreting, and maintaining standards. According to international standards and guidelines, such as 
ISO, IEC, IAF, and ILAC, activities involving conformity assessment, accreditation or recognition as well as consultancy services, should not coexist with in the same organization.  An accreditation body 
assesses the competence of a conformity assessment body to certify products and processes and 
should be independent in order to be mutually recognized globa lly.  The Institute of Standards of 
Cambodia is responsible for assessing the conformity  of imported products, upon the request of the 
competent authorities.  For local industrial products , conformity is guaranteed by using production 
methods that comply with the standard.  Where it has no relevant nationa l capacity, Cambodia uses 
the test results of recognized foreign laboratories. 
91. There are no certification or inspection bodies ope rating in the private sector.  Government 
agencies such as Camcontrol carry out inspection and testing, although they are not internationally 
accredited.  There are no government-accredited bodies and there is no Cambodian accreditation body signatory to an international cooperation agreem ent, such as ILAC (International Laboratory 
Accreditation Cooperation) or APLAC (Asia Pa cific Laboratory Accreditation Cooperation). 
Testing and inspection 
92. Camcontrol is responsible for safety and quality standards and the certification and 
verification of imports and exports. Export inspecti on covers garments, agricultural products, rice, 
wood and processed food. Import inspection concentrat es on food, agricultural chemicals, petroleum, 
textiles and garments. Domestic market surve illance targets food safety and commercial fraud. 
Camcontrol operates laboratories for food testing, for cereal testing and for petroleum products.   
93. Given these shortcomings, exporting firms may depend on negotiations with importing 
countries and buyers.  Conformity assessment to buyers' requirements for most Cambodian exports 
(garments, rubber, footwear, rice, soybeans, cashew  nuts, cassava, handicrafts, etc.) is through 
"second party" certification, originated by the buyer.  Through this procedure, the buyer provides the specifications or standards to the supplier, w ho manufactures or produces according to the buyers' 
own quality control procedures.  A representative of the buyer may visit the exporter's facilities to 
verify the adequacy of quality control procedures and to undertake inspections at key stages, including final inspection of the production lots to be exported. 
(d) Membership in international and regional fora 
94. Cambodia is a subscriber member of the Intern ational Organization for Standardization (ISO) 
(since 1995), an affiliate member of the Intern ational Electrotechnical Commission (IEC), and a 
member of the ASEAN Consultative Committee fo r Standards and Quality (ACCSQ).  It is a 
signatory to the ASEAN sectoral mutual recognition arrangement for electrical and electronic equipment (ASEAN EEE MRA).   WT/TPR/S/253 Trade Policy Review 
Page 54 
 
 
 (iii) Sanitary and phytosanitary measures 
(a) Overview 
95. Cambodia scheduled its full implementation of  the WTO SPS Agreement within the 5-year 
transitional period following accession30;  full SPS compliance has been a priority during the review 
period.   Cambodia is also committed to comply ing with a range of international agricultural 
compliance/quality standards in line with th e International Standards Organization (ISO), 
International Plant Protection Convention (IPPC), World Organization for Animal Health, Southeast 
Asia Fisheries Development and Education Ce ntre, Association of National Rubber Producing 
Countries and the International Rubber Developmen t Board and the Codex Alimentarius Commission 
(CAC), of which it is a member. 
96. According to a recent analysis by the FAO a nd the Standards and Trade Development Facility 
(STDF)31, Cambodia's SPS management system suffers from a number of serious weaknesses. These 
include problems in the definition of respons ibilities between the various agencies, overall 
fragmentation of  responsibilities between, and even with in, ministries as well as limited capacity to 
discharge those responsibilities;  lack of systema tic inspection or monitoring in all key areas of 
production and processing, with an impact on pr oduct quality and safety (most inspection activities 
seem to have had an objective of ra ising revenue rather than contro lling quality and/or safety;  an 
absence of systematic laboratory testing to supp ort 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.  
97. A major challenge for effective SPS management  systems is for relevant SPS agencies to 
agree to minimize duplication, reduce unnecessary inspections, and improve reporting mechanisms 
for food safety.  Agencies' duplication of functions and inspections, through the proliferation of 
subordinate legislation, may have undermined effective SPS policy, reporting, and coordinated 
enforcement systems in Cambodia. This has also imposed a substantial cost on private sector food 
produced.  However, the authorities contend that sinc e the establishment of inter-ministerial 
Prakas 868 (2010) on the Implementation of an Instit utional Arrangement of Food Safety, based on a 
farm-to-table approach, the definition of res ponsibilities has been clarified between Customs, 
Camcontrol, MAFF, MIME, and the Ministries of Tour ism and Health.  According to the authorities, 
substantial progress has been made in reforming SPS management systems and capacity development.   
(b) Regulatory and institutional framework  
98. The Law on the Management of Quality and Safety  of Products and Services is the basis for 
inspection and for regulating quality, safety, and st andards;  it is the principal instrument for the 
activities of Camcontrol and relevant agencies.  The 2007 Law on Standards of Cambodia established 
the Institute of Standards of Cambodia, th e Law on Fisheries provides for the Fisheries 
Administration to move towards a central compet ent authority, and numerous sub-decrees have 
concentrated on the implementing of standards and SPS measures and infrastructure development, 
such as slaughterhouse management and hygiene.  
                                                      
30 For Cambodia's Action Plan for the implementation of the SPS agreement, see WTO document 
WT/ACC/KHM/15/Rev.1, 3 March 2003.  
 31 Food and Agriculture Organization (2010a), p. 14.  See also WTO document 
WT/COMTD/LDC/W/47, dated 4 March 2010.  Cambodia WT/TPR/S/253 
 Page 55 
 
 
 99. However, from the start there has been an overl ap in administrative arrangements concerning 
SPS measures.32  Monitoring and regulating the production of agricultural raw materials (crops, 
livestock and fish), and SPS measures are the respons ibility of the MAFF.  An overlap in inspection 
of products, where MAFF and Camcontrol have resp onsibilities, may allow risks to animal, plant, and 
human health to be imported.  Camcontrol has a le gal mandate to inspect food products at the border 
and is the SPS enquiry point. MAFF has effectively withdrawn from the border, apart from avian flu 
surveillance. Although MAFF is the principal regul ating agency of agricultural products, production 
and inputs,  Camcontrol examines shipments in relati on to whether they conform to specifications and 
satisfy environmental standards. 
Ministry of Agriculture, Forestry and Fisheries (MAFF)  
100. The MAFF is responsible for animal, plant, a nd fish health.  The De partment of Animal 
Health and Production (DAHP) is responsible for th e inspection of animals and animal products and 
for issuing the Animal Health Certificate, as require d under the OIE animal health code and standards. 
MAFF/DAHP issue import permits for animals and animal products based on risk assessment.33 
101. The General Directorate of Agriculture (GDA) is responsible for import/export inspections of 
plants, plant products, and other regulated articles, and for issuing permits and phytosanitary 
certificates in compliance with the International Pl ant Protection Convention, of which the GDA is a 
national Plant Protection Organization.  Sub-Decree  No. 15 (2003) on Phytosanitary Inspection relates 
to preventing entry of plant pest and diseases th rough Department of Plant Health inspection and 
quarantine facilities, and the issuance of phytosanita ry certificates, transit arrangements plant health 
inspectors powers and enforcement penalties.  
102. The Fisheries Administration is responsible for inspection and for issuing fish health 
certificates and import/export permits for fish and fi shery products. Analytical capabilities are limited, 
and complex analysis such as for fish biotoxi ns is undertaken by internationally accredited 
laboratories in Viet Nam.  Under the Law on Fisheries  (2006), the Fisheries Administration is the 
central competent authority and is responsible fo r managing and organizing fishery natural resources, 
activities, and development;  scientific research in production, processing, conservation, business 
practices, and the promotion of aquaculture;  enforcement through inspection, monitoring, and 
surveillance;  and ensuring quality and safety. 
Camcontrol (Cambodia Import Export Inspection and Fraud Repression Department in the Ministry 
of Commerce)  
103. The Law on the Management of Quality and Sa fety of Products and Services provides the 
legal mandate for Camcontrol to conduct official in spection of goods in international trade and on the 
domestic (retail) market.  Under Sub-Decree No . 59 (2008), the Department has the following duties 
and responsibilities:  (i) inspection of imports and exports, jointly with Customs;  (ii) consumer 
protection through product safety and suppression of  fraud;  (iii) export certification to meet 
importing country requirements; (iv) checking of  comp liance with international standards;  (v) review 
                                                      
32 See ADB (2008b), p. iii. 
33 Key regulations include: Sub-Decree No. 16 on Sanitation Inspection of Animal and Animal 
Products (2003), on management of the movement of animals, and sanitary inspection of animals, and animal 
products; and Sub-Decree No. 108 on Slaughterhouse Management, Sanitary Inspection of Animals, Meat and Animal Products (2007), which includes (i) the definition of slaughterhouses according to animal or poultry to 
be slaughtered, and size of the unit (ii) location and licensing arrangements, and (iii) sanitary inspection 
procedures.
 WT/TPR/S/253 Trade Policy Review 
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 of health and safety of products from production through to commercialization, and submission to 
competent authorities;  (vi) the control of products  and services on the markets;  (vii) management of  
MoC laboratory product testing facilities;  (viii) provision of  a commercial inspection service; (ix) collection of  inspection fees relating to im port/export quality testing;  and (x) secretariat of 
National Codex Committee and SPS National Enquiry Point.
34  
104. Camcontrol undertakes inspections of food and some agricultural inputs. On the domestic 
market it undertakes surveillance of food and other regul ated products. It levies fees for its inspection 
service;  for example, the fee for cargoes inspected is 0.1% of the c.i.f. value on imports (and 0.1% of 
the f.o.b. value on exports), with a minimum of US$6.0, which covers costs and contributes to government revenues, at approximate ly 1% of consolidated revenue.
35 
105. There are 5 to 20 inspectors in each province and Phnom Penh.  Camcontrol also undertakes 
non-regulatory inspections for exporters, primarily in  relation to export shipments of rice and other 
agricultural products.  Camcontrol's priority SPS a nd food safety is surveillance of the domestic 
market, targeting smuggled and legitimate food products on the basis of risk assessment findings. 
Legitimate imported food products ar e principally inspected for the type and condition of packaging 
and the expiry date and safety risk. Camcontrol has a central laboratory that has limited testing capacity in microbiology and chemistry for water and foods.   
Ministry of Health (MoH) 
106. The MoH  has responsibility for public health and food safety issues as detailed in Sub-
Decree No. 67.  The Department of Drugs and Food is  responsible for food and drug control and is the 
focal point on the ASEAN Food Safety Expert Group.  The Department consists of five Bureaus:  
Registration and Cosmetics;  Essential Drugs;  Phar maceutical Trade;  Drug Regulation;  and Food 
Safety Bureau (FSB), which is the focal point w ithin the ASEAN Food Safety Network.  The FSB is 
working on establishing sanitary procedures in catering.  
Ministry of Industry, Mines and Energy (MIME) 
107. The MIME regulates and inspects manufacturi ng industries, which include agri-based 
production activities under Sub-Decree No. 4.  The MIME inspects and samples foods and agri-based 
products for conformity and safety, in order to issue product licences. Analysis of the products is 
undertaken by the MIME's analytical ILCC laborat ory.  MIME inspectors from various departments 
(Institute of Standards Cambodia, Department of I ndustrial Techniques, and the Department of Water 
Sanitation, as well as sanitation authorities in the municipalities) visit manufacturing and agri-processing plants.  The MIME inspects every th ree month, as a rule, and advises on hygiene and 
safety issues.    
(c) Laboratory testing 
108. In addition to clarification of responsibiliti es, a major area where capacity-building work 
appears to be necessary, is in national laboratory tes ting.  Phytosanitary and animal health certificates, 
                                                      
34 MoC Declaration No. 141 (Prakas of 2003) on Formation of SPS Enquiry Office (Point) under 
Camcontrol,  nominated Camcontrol as SPS enquiry point and to work closely with the National Codex unit and 
to create SPS awareness within country.   
35 It is not clear how the fees for in spection of imported food products ar e calculated to ensure that they 
are equitable vis-à-vis  fees for inspection of domestic products and th at they are no higher than the actual costs 
of the service as required in the SPS Agreement, Annex C, paragraph 1(f).  Cambodia WT/TPR/S/253 
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 and monitoring of hazards in agri-based produc t production, processing, and retailing, require 
laboratory analysis to identify SPS risks.  The Ins titut Pasteur has ISO accredita tion for certain tests, 
which means that any exporting company that ne eds laboratory analysis must send samples to 
Institute Pasteur  or dispatch to international laboratories. 
109. The MIME's Industrial Laboratory Center of Cambodia (ILCC) undertakes on average 
2,000 food and water bacteriology and chemical an alyses per year.  ILCC is of great importance as 
many processors and manufacturers rely on the qua rterly laboratory tests for their quality assurance 
assessment.  The ILCC laboratory has been accredited by the National Association of Testing Authorities (NATA) in Australia against the ISO 17025 international standard.  It has the recognized 
capacity to carry out laboratory analysis required to identify SPS risks associated with microbiological 
contamination of food and water.  The MIME  has started implementing an action plan to 
commercialize the ILCC by 2013;  the plan cove rs technical capacity building of staff at the 
laboratory as well as ISO accreditation of major tests.  According to the authorities, these actions will 
enhance the commercial viability of the laboratory, and its ability to provide an internationally 
recognized testing service to the private sector.  
(d) SPS sensitivity and exports 110. The 2007 Diagnostic Trade Integration Study (DTI S) identified 19 nineteen priority product 
sectors that have export potential;  9 were agri-bas ed products (cashew nuts, cassava, corn, fish and 
fishery products, fruits and vegetables, livestock, rice, rubber, and soybeans).  The DTIS seeks to 
assist the Government and development partners in identifying priority areas for action and intervention and aid-for-trade support.  A barrier to further export growth in SPS-sensitive products 
such as fish and fishery products, meat and livestoc k, and certain crops (particularly rice and cashew) 
into high-value country markets relates to sanitary c onditions, analytical surveillance, and the lack of 
certification and product traceability.
36  Issues in key export areas include plant, animal and fish 
health. 
Plant health 
111. Cambodian rice exports are unable to access certai n markets, which require rice to be grown 
in pest-free areas and a number of risk-assessment documents showing that all rice and paddy are free 
of pests and diseases.  Cambodia currently do es not seem to meet requirements regarding, inter alia,  
the capacity of phytosanitary laboratories.37 
Animal health 
112. The prevalence of various animal diseases,  including Foot and Mouth Disease, Classical 
Swine Fever, Newcastle Disease, Highly Pathogeni c Avian Influenza and more recently Blue Ear 
(porcine reproductive and respiratory syndrome) ar e of concern. Cambodia reported 27 outbreaks of 
HPAI in the period 2004 to March 2011 and 9 human fatalities.  Given the transit of live animals 
(Thailand to Viet Nam), the trans-boundary animal disease control project to set up disease-free zones 
across the region is ambitious and may be difficult to achieve. 
                                                      
36 ADB (2008b), pp. 24-26.  Viewed at:  http://www.adb.org/Documents/Reports/Consultant/38421-
CAM/38421-CAM-TACR.pdf. 
37 For example, 2010 Cambodia – China protocol on milled rice exports to China contains 
requirements that will need capacity strengthening in Cambodia's phytosanitary organization.  WT/TPR/S/253 Trade Policy Review 
Page 58 
 
 
 Fish health 
113. A barrier for export growth into high-value c ountries relates to sanitary conditions in the 
Cambodian fisheries sector.38  For example, Cambodia is not on the list of countries approved for the 
export of fish to the EU.39  A number of conditions must be met to obtain approval, including: 
compliance with EU legislation, with sanitary and environmental conditions in  the production of fish 
and fish products, with HACCP-based production systems, and the establishment of a competent 
certification authority. 
(iv) Trade-related intellectual property rights (TRIPS)  
(a) Overview 
114. Given Cambodia's limited experience with intellectual property rights protection, Cambodia 
was granted WTO a phase-in period up to 2007 to fully implement IPR protection in line with the 
WTO TRIPs Agreement.  In 2005, the WTO grante d an extension until 2013 for least developed 
countries, including Cambodia, to enforce copyright laws and begin accepting patents.40  LDCs were 
also invited to provide the WTO TRIPS Council information on their individuals needs, preferably by 1 January 2008, in order to obtain the neces sary assistance in implementing the Agreement.
41 
115. National and MFN treatment is granted to a ll foreign nationals under existing Cambodian 
intellectual property legislation, and all draft legi slation integrates the same principles.  Under the 
TRIPS Agreement, Cambodia must introduce an IP R enforcement regime th at includes remedies for 
the civil and criminal enforcement of IPRs, as well as administrative measures for the border 
enforcement of IPRs.  During the review period, Cambodia passed or introduced a number of laws 
and regulations including:   
- Law on Patents and Industrial Designs, in force since January 2003, followed by 
regulations (prakas) on procedures for the re gistration of industrial design, and for the 
grant of patent and utility model certificate, in force since November 2006;  
- Law on Trade Marks, Trade Names and Acts of Unfair Competition, in force since 
February 2002, followed by Sub-Decree No. 46 on the Implementation of the Law, since July 2006; border measure provisi ons are included in the sub-decree;   
- Law on Copyrights and Related Rights, in force since March 2003; a draft sub-decree 
on the establishment of collective manage ment organizations is currently under 
discussion;  
- Encrypted Satellite Signal Protection Law, to be promulgated in 2011;  
- the draft law on geographical indications is under review at the MoC and due for 
submission to Council of Ministers in 2011;  
- draft legislation on layout design of integrated circuits is under discussion at 
ministerial level; 
                                                      
38 World Bank (2008), p. 17.  
39 Cambodia's fish exports to the EU ceased in 1997 as per Commi ssion Decision (CD9 7/296/EC).   
40 WTO document IP/C/40, 29 November 2005. 
41 ICTSD (2007). Cambodia WT/TPR/S/253 
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 - draft law on protection of undisclosed information and trade secrets has been 
completed and implementing regulations are being drawn up; 
- legislation on plant variety protection was adopted in 2008, as the Law on Seeds 
Management and Plant Breeder's Rights Protection;  and  
- the draft law on compulsory licensing for public health is being drawn up by the 
Ministry of Health and is scheduled to be submitted to the national Secretariat for 
Intellectual Property in 2011. 
116. Cambodia has been a member of the World Intellectual Property Organisation (WIPO) since 
1995 and the Paris Convention for the Protection of I ndustrial Property since 1998.  Cambodia aims to 
join the Protocol Relating to the Madrid Agreem ent Concerning the International Registration of 
Marks, in 2015, if the necessary technical assist ance is available.  Possible application for 
membership of other treaties and conventions (e.g. WIPO Copyright Treaty (WCT) and the WIPO 
Performances and Phonograms Treaty (WPPT), Berne C onvention for the Protection of Literary and 
Artistic Works related to Copyrights and Related Rights, Patent Cooperation Treaty, International 
Convention for the Protection of New Varieties of  Plants (UPOV), Geneva Phonogram Convention 
and the Brussels Satellite Convention, etc.), will depend on the availability and timing of technical 
assistance. 
117. Cambodia had been participating in the ASEAN Framework Agreement on Intellectual 
Property Cooperation since 1999 and participates in the EC-ASEAN Intellectual Property Rights 
Cooperation Programme.42  Cambodia had also concluded b ilateral agreements on intellectual 
property protection and cooperation wi th the United States and Thailand. 
(b) Institutional framework  
Policy 
118. Various ministries, agencies, and institutions pa rticipate in intellectual property policy.  The 
Intellectual Property Department (IPD) of the Ministry of Commerce is responsible for the 
formulation and implementation of policy on trade ma rks, trade names, and acts of unfair competition, 
and will be responsible for geogra phical indications (GIs). The IPD also coordinates the drafting and 
implementation of IP laws and re gulations and is the focal point for international cooperation.   
119. The Ministry of Industry, Mines and Energy is responsible for patent law, utility models and 
industrial designs, and will also be  responsible for integrated circ uits and plant varieties.  The 
Ministry of Culture and Fine Arts is responsible for protection of copyright and related rights.  The 
Ministry of Telecommunications is responsible for the protection of encrypted signals, and the 
Ministry of Information is responsible for the ma nagement of broadcasting rights.  Under the Law on 
Seeds Management and Plant Breeder's Rights Prot ection, the MIME is responsible for issuing 
certificates for the protection of plant breeders' rights,  and MAFF is authorized to conduct field tests.  
A decision has yet to be made about which mini stry will be responsible for the protection of 
traditional knowledge and traditional cultural rights.  
120. In a significant step toward consolidating IPR policy-making, enforcement, and technical 
assistance, the Council of Ministers created th e National Committee for Intellectual Property 
                                                      
42  See ECAP II, EC-ASEAN Intellectual Property Ri ghts Co-operation Programme online information.  
Viewed at:  http://www.ecap- project.org/archive/how_to_enf orce_your_ipr/cambodia.html. WT/TPR/S/253 Trade Policy Review 
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 Management in 2008, with its secretariat within the Ministry of Commerce.43  This committee is 
responsible for developing national policy on in tellectual property, strengthening inter-agency 
cooperation, preparing and disseminating new laws  and regulations, and acting as a clearinghouse for 
technical assistance relating to the intellectual pr operty sector. This new interagency IPR committee, 
chaired by the Minister of Commerce, includes a broad range of IPR actors including representatives from the Council of Ministers, and the Ministries of Industry Mines and Energy; Culture and Fine 
Arts; Interior; Economy and Finance; Posts and Te lecommunications; Health; Agriculture, Forestry 
and Fisheries; Environment; Justice; Education; and Tourism. 
Enforcement 
121. A multiplicity of agencies is involved in the en forcement of IPRs.  The three levels of 
Cambodian courts (municipal/provinc ial courts, Appeal Court, and S upreme Court) have authority to 
prevent and preserve evidence.  Applicable provi sional measures include:  detention of material 
evidence;  search for concealed materials;  an order to stop an infringement;  confiscation of 
infringing goods;  and temporary seizure of infringe d goods.  With the recent approval of the Council 
of Ministers to establish a commercial court to d eal with commercial and IP cases, Cambodia expects 
to have a new court system specializing in settling such disputes. According to the authorities, the 
draft Law on the Commercial Court is ready to be submitted to the Council of Ministers as soon as the 
law on Judicial Organization is adopted.  
122. The competent border authority is entrusted with enforcement of intellectual property 
protection at the border to prevent the import/expor t/transit of counterfeit goods and pirated copyright 
goods.  Customs protection of IP rights is normally in itiated by an application by the right-holder or 
by ex-officio action.  The Ministry of Culture, responsible for the protection of copyright works, may 
engage in ex-officio actions through random checks of  retailers; it will seiz e counterfeit copyrighted 
works only when the right-holder has recorded his/ her copyright with the Ministry.  The Economic 
Police is concerned mainly with the infringement of intellectual property in domestic markets.  Camcontrol is responsible for enforcement of intelle ctual property rights both at the border and in the 
domestic markets. It is entitled to inspect and de tain infringing goods under the Consumer Protection 
Act and relevant IP provisions.   
123. The Enforcement Section of the Intellectual Property Department coordinates the 
enforcement effort and may act as mediator to se ttle disputes on trademark matters between the right 
owner and infringer.  The inter-ministerial Committ ee to combat piracy of VCDs and DVDs is a 
special agency established by government sub-d ecree to suppress the violation of copyright and 
circulation of pirated VCDs and DVDs in the domestic market.   
124. The DTIS 2007 noted that infringement complain ts may be made to the Economic Police, 
Customs, Camcontrol, or the Ministry of Commerc e. This may lead to confusion as there are no 
transparent rules that clarify the particular  task of each agency. The new sub-committee on 
Enforcement (of the national IPR Committee) is be ing created specifically to address this issue. 
Another bottleneck requiring priority attention is  the absence of IPR professionals;  the ECAP-II 
programme has made recommendations to address this.  In addition, there is a need to strengthen 
human resources knowledgeable in IPRs issues and develop IP education at  university level in 
Cambodia.  
                                                      
43 Established by Sub-Decree No. 142 of the Council of Ministers, 18 September 2008.  Cambodia WT/TPR/S/253 
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 (c) Legislative framework 
Patents, utility models, and industrial designs 
125. Cambodia has a small industrial base, and infring ement of patents and industrial designs is 
not yet commercially significant.  A comprehensiv e law on the protection of patents and industrial 
designs entered into force in January 2003. The law provides for the filing, registration, and protection 
of patents, utility model certificates, and industr ial designs. The MIME issued a declaration in 
June 2006 on granting patents and registering industrial designs.  
126. Patents and utility models protect the technical aspects of inventions. To receive a patent or 
utility model, the invention must be a new inve ntive step and industrially applicable. The Law 
categorically excludes certain types of inventions , such as scientific theories and mathematical 
formulae. In exchange for a patent or utility model,  the inventor must disclose the invention to the 
public. This way the body of public  knowledge increases, and is available to all once the term of 
protection expires. Patents are valid last for 20 y ears from the date of filing, and utility models for 
7 years;  owners must pay an annual maintenance fee, which increases over time, to keep the registration alive. Patent applications are filed wi th the Department of Industrial Property of the 
MIME. 
127. While Cambodia is not a party to the Patent Cooperation Treaty, the law provides a procedure 
for registering foreign applications in Cambodia:  most applications are foreign in origin. Patent 
owners need to be aware that their rights ar e subject to revocation and abridgement by the 
Government. The Ministry has the right to exploit a patented invention itself, or allow a third party to do so to promote the public interest (e.g. nati onal defence, nutrition, h ealth, and development). 
Further, holders who delay exploiting their inven tions risk having the government grant others 
licences without their permission.  Looking to the fu ture, the Government is considering a new law on 
compulsory licences for certain drug patents.  The ow ner of a patent has the right to exclude others 
from making, importing, selling, stocking, offering for sale, and using infringing products. Both licensees and the patent owner have the right to bring a civil suit, seeking monetary damages and 
injunctive relief.  However, the law does not provi de a procedure for suspension of customs clearance 
for infringing goods.  
128. Provisions on compulsory licensing may be applied following three years of non-use of a 
patent, or if a patented product has not been offered for sale in sufficient quantity to supply the Cambodian market without valid reason.  The licence would be predominantly for the supply of the domestic market.   
129. As with patents and utility models, industrial d esigns are registered with the Department of 
Industrial Property, and the registration procedures ar e very similar. Industrial design registration lasts 
for five years from the filing date, renewable for two further consecutive five-year terms, for a total of 
fifteen years. 
Trade marks, trade names, and acts of unfair competition 
130. Trade mark law is the most developed area of  IP in Cambodia. Though enforcement could be 
improved, registration procedures are well establis hed and routinely practiced.  Trade marks and 
related IPRs are protected under the Law on Marks,  Trade Names and Acts of Unfair Competition, 
which lists the steps for registering a trade mark and the scope of protecti on.  Promulgated in 2002, 
the law outlines specific penalties for trade mark  violations, including jail sentences and fines for WT/TPR/S/253 Trade Policy Review 
Page 62 
 
 
 counterfeiting registered marks. It also contains  detailed procedures for registering trade marks, 
invalidation and removal, licensing of marks, a nd infringement and remedies. The Sub-Decree and 
Implementing Regulations to the Trademarks Law we re adopted in 2006.  The Ministry of Commerce 
has maintained a trademark registration system si nce 1991, registering more than 35,500 trade marks. 
In 2009, the Ministry of Commerce resolved  12 cases of trade mark infringements.   
131. Applications for registration of a mark are submitted to the Department of Intellectual 
property rights at the MoC.  Actual use of a mark is  not a condition for filing an application.  Priority 
is given to the person who first file d a valid application or claimed the earliest priority to the mark.  
An applicant who has already registered a mark in another member country of the Paris Convention will have priority in registering the mark in Cam bodia.  A trade mark is protected for ten years and 
may be renewed indefinitely for successive periods of ten years.  Failure to use a registered mark for 
more than five years without a valid reas on may lead to nullification of protection. 
132. A trade mark owner has the right to prevent others from infringing their mark, and performing 
acts that make infringement likely. The three main en forcement options are to:  (i) sue in civil court 
for money damages and/or specific relief;  (ii) re quest the customs authorities to suspend clearance of 
imported infringing goods;  or (iii) seek criminal prosecution and/or fines.  
Copyrights and related rights  
133. Copyrights are governed by the Law on Copyrights and Related Rights, enacted in 
January 2003. Responsibility for copyrights is split be tween the Ministry of Culture and Fine Arts, 
which handles phonograms, CDs, DVDs, and other r ecordings, and the Ministry of Information, 
which deals with printed materials. Pirated CDs, videos, textbooks, and othe r copyrighted materials 
are widely available in Cambodian markets and u sed throughout the country.  Until adoption of the 
law, there were no provisions for copyright enforcement.  
134. Authors and related rights holders are allowed by law to establish a collective management 
organization (CMO) to protect and manage their ec onomic rights.  The creation of the CMO requires 
authorization from either the Ministry of Culture and Fine Arts or the Ministry of Information, 
depending on the nature of the work. The Ministry  of Culture and Fine Arts is developing a sub-
decree on collective management. In mid 2007, the Ministry created a Copyright Department, which 
is gradually building capacity.   
135. The law provides protection for original works of authorship.
44 Authors have both economic 
and moral rights to their works. Economic rights re late to commercial exploitation of the work, and 
allow the author to prevent others from making c opies or derivative works.  Economic rights usually 
expire 50 years after the death of the author.  Mora l rights, on the other hand, are perpetual and non-
transferable. They allow an author to prevent the destruction or modification of their work, to insist on 
public attribution as the author, and to decide on the manner and timing of the work's publication. 
                                                      
44 The law provides copyright protection for literary works;  artistic and scientific documents;  official 
legislative, judicial, and administrativ e texts;  spoken works (conferences,  speeches, sermons, etc.);  dramatic 
and dramatic-musical works;  choreographic works and pantomimes;  musical compositions with or without words;  audiovisual works with or without sound and photographs extracted from these works;  drawing, 
painting, architectural, sculptural, engraving and lith ography works;  graphic and typographic works;  
photographic works and works produced with techniques similar to photography;  work of applied arts;  illustrations, cards, plans, sketches and plastic works pertaining to geography, topography, architecture and 
sciences;  computer programmes;  and derived works, such as translation, adaptation, transformation of one or 
several pre-existing works. Cambodia WT/TPR/S/253 
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 Geographical indications (GI) 
136. Since early 2009, GIs may be registered with the Ministry of Commerce under an interim 
regulation that will remain in force until the GI la w is promulgated. As part of the registration 
procedure, producers must submit specificati ons detailing the geographical area, production 
conditions, and qualification process for the products. On ly domestic GIs may be registered. The draft 
GI law provides protection for an indefinite period.45 
Draft legislation  
137. The Ministry of Industry, Mines, and Energy is drafting a law on the protection of integrated 
circuit.46  Cambodia has not yet made significant progress toward enacting required legislation on 
encrypted satellite signals, although it obtained a model law on encrypted satellite signals and 
semiconductor layout designs from WIPO in March 1999.  Cambodia does not yet provide protection 
for plant varieties, as the regulations for im plementation of the Law on Plant Breeders' Rights 
Protection are being drafted. Cambodia has no law sp ecific to trade secrets, though a draft is under 
consideration. Nevertheless, provi sions in various laws impose duties of confidentiality and penalties 
for divulgence of commercial secrets.47 
(d) Enforcement 
138. According to the authorities, Cambodia's laws on intellectual property comply fully with the 
provisions of Article 41 of the TRIPS Agreemen t concerning the availability of enforcement 
procedures under domestic legislation, the existen ce of fair and equitable procedures, and the 
opportunity for parties to proceedings to obtain a re view of final administrative decisions and initial 
judicial decisions by a judicial authority.  Provisions on civil judicial procedures and remedies are included in the Civil Code, Civil Procedure Code, and specific intellectual property laws.  The 
                                                      
 45 Once the law is in place, it is an ticipated that a number of products  with special qualities linked to 
their geographic origin will be registered. Two product s, Kampot pepper and Kampong Speu palm sugar, were 
registered in 2010, through issuance of a regulation. Th ese products have already achieved a certain reputation 
in markets abroad, and it is believed that providing th em with the protection of geographical indications will 
further facilitate their marketing.  
46 Cambodia's patent utility law did not contain any pr ovisions for the protection of layout designs (as 
required by Article 35 of the TRIPS Agreement). The subject matter will be protected through a new law on 
layout designs of integrated circuits, due to enter into force in 2015.    
47 Notably, Article 128 of the Law on Patent, Utility Models and Industrial Designs provides protection 
for undisclosed data. Non-disclosure agreements are ofte n used to maintain the confidentiality of information 
that needs to be shared, w ith an employee or contractor for example.  Such agreements are contracts like any 
other, and would be enforceable under the Contract La w (1988).  The Law on Commercial Enterprises (2005) 
prohibits the unauthorized publication of a firm's financia l statements. It also requires the Ministry of Commerce 
to maintain the confidentiality of most company documents in its records. The Law on Audit (2000) also imposes a duty of confidentiality on government auditors. The Law on Banking and Financial Institutions 
(1999) prohibits certain people from disclosing any confidential information in accounting or administrative 
documents. The Law provides for criminal penalties of up to five years imprisonment and US$60,000 in fines.  As in virtually every country, the Law on the Bar (1995) requires lawyers to maintain  client confidences.  The 
newly promulgated Penal Code (2010) contains several relevant provisions;  only part of this new code is 
currently in force, the rest enter into  effect in 2011. Under the new code, any person who, by reason of their 
position, profession, function or mission, holds confiden tial information, and divulges such information, is 
subject to criminal prosecution. Th e Law also criminalizes interception of mail, telephone tapping, and 
computer network hacking.  WT/TPR/S/253 Trade Policy Review 
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 necessary border measures were incorporated in th e Law on Marks, Trade Names and Acts of Unfair 
Competition and the Law on Copyrights and Related Rights.   
139. Cambodia's legislation provides for seizure, forfe iture, and destruction of infringing goods, 
evidence, copies, and equipment used in crea ting the infringing goods, and prohibits the re-
exportation of counterfeit trade mark goods or use of  different customs procedures.  Under the new 
regulations, customs authorities are allowed to info rm right holders about the possible importation or 
exportation of infringing goods.   
140. With the exception of trade mark enforcemen t, the Government has taken few significant 
actions to enforce its IPR obligations. However,  in 2008 the government suggested that it would 
increase prosecutions for copyright violations on do mestically produced products before expanding 
prosecutions for works produced outside Cambodia.  Cambodian copyright law allows IPR owners to 
file a complaint with the authorities to take acti on. Law enforcement action taken at the request of 
owners is directed against the piracy of domes tically produced music or video products, but not 
against piracy of foreign optical media. Seizur es are conducted upon request and follow established 
procedures.   
141. Infringement of IPRs is pervasive, ranging from software, compact discs, and music, to  
photocopied books and the sale of counterfeit products, including cigarettes, alcohol, and 
pharmaceuticals.48  In 2008, the Business Software Alliance es timated software piracy in Cambodia at 
95%, costing the industry US$47 million in 2007. A lthough Cambodia is not a major centre for the 
production and export of pirated CDs,  videos or other copyrighted materials, local businesses report 
that Cambodia is becoming an increasingly popular source of pirated material due to limited enforcement capability.  
                                                      
48 U.S. Department of State (2010).