RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/KHM/2
22 June 1999
(99-2515)
Working Party on the
Accession of CambodiaOriginal: English
ACCESSION OF CAMBODIA
Memorandum on the Foreign Trade Régime
In a communication received on 8 December 1994, the Government of the Kingdom of
Cambodia (hereafter referred to as "Cambodia") applied for accession under Article XII of the
Agreement Establishing the World Trade Organization (WTO).
At its meeting on 21 December 1994, the Preparatory Committee for the WTO established a
Working Party (WT/ACC/CAM/1) with the following terms of reference: “To examine the
application of the Government of Cambodia to accede to the WTO Agreement under Article XII, and
to submit to the General Council recommendations which may include a draft Protocol of Accession.”The membership is open to all WTO Members indica ting their wish to serve on the Working Party.
In accordance with the established procedures (WT/ACC/1), the Secretariat is circulating the
attached Memorandum on the Foreign Trade Regime received from the Government of Cambodia.
WTO Members wishing to submit questions on the Memorandum are invited to do so by 23 July 1999for transmission to the Cambodian authorities.
_______________WT/ACC/KHM/2
Page i
TABLE OF CONTENTS
 Page
 Number
I. INTRODUCTION 1
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description (territory, population, economic
specialization, main economic indicators)2
(b) Current economic situation 5
2. Economic Policies
(a) Main directions of the ongoing economic policies, tactical and
strategical goals of the economic policies, pricing policy,
economic development plans, privatization plans, sectoral
priorities, regional development plans, etc8
(b) Monetary and fiscal policies 12
(c) Foreign exchange and payments system, relations with
International Monetary Fund, application of foreign exchange
controls if any14
(d) Foreign and domestic investment policies 16
(e) Competition policies 16
3. Foreign trade in goods and services:  volume and value of trade,
exports and imports, foreign trade ba lance, structure of trade, trade
by geographic areas and dynamics of  trade, accompanying statistical
data and information on publications (Annex 1 refers)16
5. Information on financial moveme nts related to nationals working
abroad, remittances, etc.17
III. FRAMEWORK FOR MAKING  AND ENFORCING POLICIES
AFFECTING FOREIGN TRADE IN GOODS AND TRADE IN
SERVICES
1. Powers of executive, legislative and judicial branches of government 17
2. Government entities responsible for making and implementing
policies affecting foreign trade20
3. Division of authority between central and sub-central governments 22
4. Any legislative programmes or plan s to change the regulatory regime 22
5. Laws and Legal Acts (Annex 2 refers) 23WT/ACC/KHM/2
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6. Description of judicial, arbitral or administrative tribunals or
procedures, if any23
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation
(a) Registration requirements for engaging in importing 24
(b) Characteristics of national tariff (the most recent edition of which
should be supplied), customs tari ff nomenclature (HS), types of
duties, general description of the customs tariff structure,
weighted average level of duties on main customs tariff groupings
application of m.f.n. tariff rates, tariff preferences25
(c) Tariff quotas, tariff exemptions 26
(d) Other duties and charges, sp ecifying any charges for services
rendered26
(e) Quantitative import restricti ons, including prohibitions, quotas
and licensing systems26
(f) Import licensing procedures (Annex 3 refers) 26
(g) Other border measures, e.g. any other schemes that have border
effects similar to those of the measures listed under (e) above27
(h) Customs valuation (WTO Customs Valuation Agreement
(Annex 4 refers), the Brussels Definition of Value, or any other
system) whether used only for purposes of levying ad valoremrates of duty or for other purposes27
(i) Other customs formalities 27
(j) Pre-shipment inspection 28
(k) Application of internal taxes on imports 29
(l) Rules of origin 29
(m) Anti-dumping regime 29
(n) Countervailing duty regime 29(o) Safeguard regime 30
2. Export Regulation
(a) Registration requirements for engaging in exporting 30
(b) Customs tariff nomenclature, types of duties, duty rates, weighted
averages of rates 30
(c) Quantitative export restrictions , including prohibitions, quotas and
licensing systems30
(d) Export licensing procedures 31
(e) Other measures, e.g. minimu m export prices, voluntary export
restrictions, orderly marketing arrangements31
(f) Export financing, subsidy and promotion policies 31
(g) Export performance requirements 32
(h) Import duty drawback schemes 32
3. Internal policies affect ing foreign trade in goods
(a) Industrial policy, including subsidy policies 32WT/ACC/KHM/2
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(b) Technical regulations and standards, including measures taken at
the border with respect to  imports (Annex 5 refers)32
(c) Sanitary and phytosanitary measures, including measures taken
with respect to imports33
(d) Trade-related investment measures 33
(e) State-trading practices (Annex 6 refers) 34
(f) Free zones 34
(g) Free economic zones 34
(h) Trade-related environmental policies 34(i) Mixing regulations 34
(j) Government-mandated counter-trade and barter 34
(k) Trade agreements leading to country-specific quotas allocation 34
(l) Government procurement practices, including general legal
régime and procedures for tendering, dealing with tenders andaward of contracts34
(m) Regulation of trade in transit 35
4. Policies affecting foreign trade in agricultural products
(a) Imports -  i.e. comprehensive description of the types of border
protection maintained:  customs duties and/or any other border
measures35
(b) Exports - i.e. description of, and the budgetary expenditure and
any revenue foregone involved in each of the export subsidymeasures in place35
(c) Export prohibitions and restrictions 35
(d) Export credits, export credit guarantees or insurance programmes 35
(e) Internal policies - i.e. description of, and the budgetary
expenditure and any revenue foregone involved in each of the
domestic support measures in place36
5. Policies affecting foreign trade in other sectors 36
(a) Textiles regime 36
(b) Policies affecting foreign trade in other major sectors 36
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy 36
(b) Responsible agencies for policy formulation and implementation 37
(c) Membership of international intellectual property conventions and
of regional or bilateral agreements37
(d) Application of national and m.f.n. treatment to foreign nationals 38
(e) Fees and taxes 38
2. Substantive standards of protection, including procedures for the
acquisition and maintenance of intellectual property rightsWT/ACC/KHM/2
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(a) Copyright and related rights, including rights of performers,
producers of phonograms and broadcasting organizations38
(b) Trademarks, including service marks 41
(c) Geographical indications, incl uding appellations of origin 42
(d) Industrial designs 42
(e) Patents 43
(f) Plant variety protection 44
(g) Layout designs of integrated circuits 44
(h) Requirements on undisclosed info rmation, including trade secrets
and test data44
(i) Any other categories of intellectual property 44
3. Measures to control abuse of  intellectual property rights 45
4. Enforcement
(a) Civil judicial procedures and remedies 45
(b) Provisional measures 46
(c) Any administrative procedures and remedies 46(d) Any special border measures 46
(e) Criminal procedures 47
5. Laws, decrees, regulations and other legal acts relating to the above 47
6. Statistical data on applications for and grants of intellectual property
rights, as well as any statistical data on their enforcement47
VI. TRADE-RELATED SERVICES REGIME
1. General 48
2. Policies affecting Trade in Services
(a) Government departments, agenci es, professional associations or
other bodies with authority or a role relevant to the conduct of
service activities48
(b) Judicial, arbitral or administrative tribunals or procedures
providing for the review of, or remedies in relation to,
administrative decisions affecting trade in services49
(c) Provisions, including those in international agreements,
concerning qualification requireme nts and procedures, technical
standards and licensing and/or registration requirements for the
supply of services49
(d) Provisions governing the existence and operation of monopolies
or exclusive service suppliers49
(e) Provisions relating to safeguard measures as they apply to trade in
services49
(f) Provisions relating to international transfers and payments for
current transactions of services49WT/ACC/KHM/2
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(g) Provisions relating to capital tr ansactions affecting the supply of
services49
(h) Provisions governing the procurement by governmental agencies
of services49
(i) Provisions concerning any form of aid, grant, domestic subsidy,
tax incentive or promotion scheme affecting trade in services50
3. Market Access and National Treatment
(a) Limitations on the number of service suppliers 50
(b) Limitations on the total value of service transactions or assets 50
(c) Limitations on the total number of service operations or on the
total quantity of service output50
(d) Limitations on the total number of natural persons that may be
employed in a particular service sector50
(e) Restrictions on, or requirements of specific types of legal entity
through which a service may be supplied51
(f) Limitations on the participation of foreign capital 51
(g) Measures providing for less than the treatment accorded to
national services or service suppliers51
4. Most-Favoured-Nation Treatment 52
ANNEX 1 STATISTICS AND PUBLICATIONS
1. Foreign trade statistics for good and services:  responsible agencies 53
2. Publications related to statistics 53
3. Statistical Data
(a) Main economic indicators:
(i) GNP 53
(iv) Production and consumption of the basic goods 54
(viii) Balance of payments 55(ix) Foreign exchange 56
(b) Foreign trade statistics:
(i) Foreign trade (aggregates at the two-digit HS level) 56
(ii) Export statistics 59
(iii) Import statistics 60
(iv) Imports from main supplies, preferably at a
tariff line level63
(v) Trade by geographic areas (main trade partners) 65WT/ACC/KHM/2
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ANNEX 2 LIST OF LAWS AND LEGAL ACTS
1. Laws and legal acts regulating the activity of the customs authorities;
responsible agencies68
2. Laws and legal acts relating to non-tariff regulation of imports,
exports and trade in transit, rule s of origin: responsible agencies69
3. Laws and regulations relating to foreign investment: responsible
agencies69
5. (a) Existing, laws, regulations or administrative guidelines which
significantly affect trade in services.70
(b) Publications or sources of in formation, concerning measures of
general application, of relevance to the GATS.72
(c) Enquiry points, if any, as foreseen in Article III of GATS 72
ANNEX 3 INFORMATION ON IMPORT LICENSING
PROCEDURES
I. OUTLINE OF SYSTEMS 73
II. PURPOSES AND COVERAGE OF LICENSING 73
ANNEX 4 INFORMATION ON IMPLEMENTATION AND
ADMINISTRATION OF THE CUSTOMS
VALUATION AGREEMENT74
ANNEX 5 INFORMATION ON TECHNICAL BARRIERS TO
TRADE76
ANNEX 6 INFORMATION ON STATE-TRADING 77
ANNEX 7 A SERVICES SECTORAL CLASSIFICATION LIST
I. BUSINESS SERVICES
1. Professional Services 78
2. Computer and Related Services 79
3. Research and Development Services 80
4. Real Estate Services 80
5. Rental/Leasing Serv ices without Operators 80
6. Other Business Services 80
II. COMMUNICATION SERVICES 81
1. Postal services 81
2. Courier services 82
3. Telecommunication services 82
4. Audiovisual services 85WT/ACC/KHM/2
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III. CONSTRUCTION AND RELATED ENGINEERING SERVICES 85
IV. DISTRIBUTION SERVICES 85
V. EDUCATIONAL SERVICES 85
VI. ENVIRONMENTAL SERVICES 86
VII. FINANCIAL SERVICES
1. All insurance and insu rance-related services 86
2. Banking and other financial services (excl. insurance) 87
VIII. HEALTH RELATED AND SOCIAL SERVICES 90
IX. TOURISM AND TRAVEL RELATED SERVICES 90
X. RECREATIONAL, CULTURAL AND SPORTING SERVICES 91
XI. TRANSPORT SERVICES 91
XII. OTHER SERVICES NOT INCLUDED ELSEWHERE 91
BILATERAL TRADE AGREEMENTS 91
ANNEX 7 B1COMMERCIAL REGISTRATION 97
ANNEX 81IMPORT AND EXPORT LICENSES,
CERTIFICATES OF ORIGIN AND
REGISTRATION OF TRADEMARKS112
                                                     
1 English onlyWT/ACC/KHM/2
Page 1
I. INTRODUCTION
The national elections that took place in May 1993 under the aegis of the United Nations
ushered in a new era in Cambodia’s history.
The preceding eighteen years had been a period of national calamity.  During the Khmer
Rouge period (1975-1979) more than two million people are believed to have died as the result of the
policies of that regime. In particular, almost all educated Cambodians were either killed or fled the
country. Money was abolished, and the Central Bank was blown up. The rule of law was abolished,
and many courthouses blown up. Financial, administrative, legal and diplomatic records were entirely
destroyed. Education ceased to exist. Pagodas, churches and mosques were razed. Families were
dispersed. The objective was nothing less than to destroy completely Cambodia’s political, economic,legal and social structures.
The period between 1980 and the signing of the Paris Peace Agreements in October 1991 was
characterized by civil war. Most of the country was organized as a Socialist state with a command-
and-control economy. Although certain steps to liberalize that economy were taken beginning in thelate 1980s, the legal and administrative structures in place in early 1993 were generally not adapted to
the requirements of a liberal democracy and a market economy.
The Constitution adopted following the elections of May 1993 guarantees liberal democracy
and a free market economy.  The Royal Government has moved swiftly to adapt the role ofgovernment to that required by a market economy. Most state-owned enterprises have been privatized.
All prices, including the exchange rate and interest rates, have been liberalized and respond solely to
market forces. Quantitative restrictions on trade have been removed. Import licensing is restricted to
only a small number of sensitive goods. At the same time, the Royal Government has given highest
priority to putting in place a legal framework necessary for the operation of a market economy. Thisprocess is still under way.
In adapting its laws, institutions and policies the Royal Government has been mindful of
international standards, and the need to adhere to them. For example, MFN and National Treatment
are accorded to all trade in goods. The tariff nomenclature is based on the Harmonized System. Draft
laws on protection of intellectual property rights and technical standards fully meet the requirements
of the respective WTO agreements. In brief, Cambodia has already taken, or is in the process oftaking, a number of important steps to align its policies and practices to WTO rules.
However, the legacy of the past still bears heavily on Cambodia. Nowhere is this more
evident than in the scarcity of skills required by a market economy.  For example, in early 1997 there
were 65 members of the Cambodian Bar Association. For these and other reasons, Cambodia has beenclassified by the United Nations as a Least Developed Country. Cambodia will need to utilize
appropriately the various flexibilities contained in the WTO Agreements as regards Least Developed
Countries to ensure that its integration into the world trading system is both rapid and consistent with
its capabilities.
The present Memorandum is designed to furnish WTO members with background on
Cambodia’s economy, and detailed information on its foreign trade regime. The Royal Government
stands ready to provide additional data and information if required. The Memorandum was prepared
by the Royal Government’s Inter-Ministerial Coordinating Committee on WTO Accession, and was
finalized in July 1998.  It was reviewed by the Council of Ministers on 21 May 1999.  WT/ACC/KHM/2
Page 2
II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
1. Economy
(a) General description (territory, population, economic specialization, main economic
indicators)
Territory and population
The Kingdom of Cambodia is situated in Southeast Asia. It has three neighbours: the People's
Democratic Republic of Laos to the north, Thailand to the north and the west, and Vietnam to the
south-east and the east. In the south and south-west of Cambodia, the Gulf of Thailand forms a natural
border.
Cambodia covers a land area of 181,035 square kilometres. The longest distance from north
to south is about 450 km. and from west to east 58 0 km. About five per cent of Cambodia 's land area
consists of rivers and lakes, with the Mekong River and the Tonle Sap Lake linked at Phnom Penh by
a 100 km. long river. During the dry season the water from Tonle Sap flows into the Mekong; the
direction however reverses in the wet season due to the level of water in the Mekong being higherthan that of the Tonle Sap.
The plains of Cambodia are bounded by the Cardamon Mountains to the west and the
Dangrek Mountains in the north. In the north-eastern corner of the country the plains give way to the
Eastern Highlands, a remote region of densely forested mountains and high plateaux that extends
eastwards into Vietnam's Central Highlands and north into Laos.
Cambodia has a large forested area with nearly 50 per cent (9 million ha.) of its land area still
under forest cover.  Beside this, it has about 2.7 million ha. of arable land, of which 1.8 million ha. isused for rice cultivation (rice output accounts for 73 per cent of total crop output in terms of value).
Language
The official language is Khmer. As regards foreign languages, some of the older generation
speak French and the use of English is now widespread among the younger generation. French is stillused in education system. English is the main foreign language used by Government offices. Chinese,
English and French are the main foreign languages used for business purposes.
Population
Cambodia's population is estimated in 1997 at ar ound 11 million, of which about one million
live in the capital city, Phnom Penh.2 The population is unusually homogeneous with over 90 per cent
of the inhabitants being ethnic Khmer. Minority groups include ethnic Chinese, Vietnamese and
Cham (Muslims). In addition, there are about twenty different groups of hill-tribes or indigenousminorities.  Cambodia's population is estimated to be growing at an annual rate of 2.7 per cent. A full-
fledged census was undertaken in March 1998. The results of this census, when they become
available, will provide an accurate and up-to-date profile of the Cambodian people.
Administratively, Cambodia has 20 provinces and four autonomous cities (Phnom Penh,
Sihanoukville, Kep, and Pailin). Phnom Penh is the capital city of the Kingdom.
                                                     
2 Source: Ministry of Economy and Finance: Monthly Bulletin of Statistics, 2nd year, 18 June 1997, P. 6.WT/ACC/KHM/2
Page 3
Economic specialization
Cambodia is well-endowed with natural resources including forests, inland and coastal
fisheries, different agro-ecological conditions suited to a wide range of crops and livestock and rich
biological diversity.
Agriculture
The main domestic activity is agriculture, which contributed 44.6 per cent of the country's
GDP in 19953. This share is declining year by year due to the lower growth in this sector and the
higher growth in other sectors. However,  Cambodia's agricultural potential is good.
Crops grown both for food and industrial uses (such as jute and rubber) account for roughly
25 per cent of GDP in 1995, livestock for 12 per cent, fisheries for four per cent and forestry for three
per cent. Rice accounts for 90 per cent of the cropped area (land suited for rice-based cropping is
estimated at 2.6 million ha., but only about 1.7 mill ion ha. was planted in 1992-93), one-third of the
total value of agricultural production and almost three quarters of caloric intake. Agriculture employsbetween 82 to 85 per cent of the total labour force.
Forestry
Cambodia has valuable forest resources and a long tradition of forest utilization by its
population. The forests are an integrated component in the way of life of rural communities,contributing wood and wood products as well as non-wood forest products and foods from plants and
wild animal.
However, forests in Cambodia have undergone major changes in the recent past, and serious
concern has been expressed over their exploitation. The Government has taken efforts to protect
forests and adopted a strategy for their exploitation in a sustainable manner. In 1969 a forest resourceinventory indicated that forests covered 13.2 million ha., covering over 70 per cent of the country's
territory. Nowadays, about 50 per cent (9 milli on ha.) of its land area is still under forest cover
4.
Fisheries
The fishery sector plays a significant role in the economy and traditionally in providing the
population's protein needs. Fish production comes from  inland (rivers, lakes, floodplain), marine and
aquaculture sources.
The Great Lake Tonle Sap is a unique natural resource. In addition to its hydrological role, it
represents the heart of Cambodia's capture fisheries productivity. One of the richest inland fishinglakes in the world, the Tonle Sap was reported as being nearly 10 times as productive as the best
fishing grounds in the North Atlantic, even though reduced fish yields were at least 65 kg./ha./yr if
calculated on the basis of the dry season area of the lake. This compares with an average yield of12 kg./ha./yr in typical tropical rivers.
The inland capture fishery has been Cambodia's most important fishery both in terms of
production and value. Total commercial output between 1990 and 1992 averaged 113,500 tons per
                                                     
3 Source: First Five-year Socio-economic Development Plan 1996-2000, July 1997, P 87.
4 See: Cambodia: Agricultural Development options review (Phase I), 1994, p.38WT/ACC/KHM/2
Page 4
year, of which 70,000 tons (61 per cent) were inla nd fish, 37,000 tons (32 per cent) marine fish and
7,000 tons (about 6 per cent) aquaculture products. (See table A1-4).
Minerals
Due to recent history, Cambodia's mining is very weakly developed. However, several pre-
war studies had shown that Cambodia possesses a wide range of mineral resources.
At present there is little mineral resource exploitation in Cambodia. There is potential for
production of clay (for ceramics), dolomite (for glassmaking), gold, limestone (for cement), bauxite,
granite, pagodite, phosphates, quartz, sapphire, ruby, silica sand, and other precious stones. Extraction
is on a very small scale with the exception of gemstones and gold. There could be significant naturalgas and oil potential in Cambodia.
Contracts have been concluded for offshore exploration and further contracts for onshore
exploration are expected to be issued. Estimates have been put at one to five trillion cubic feet of gas
and 30 to 180 million barrels of oil.
Industry
Cambodia's economy is traditionally dominated by the agrarian sectors. An industrial base
had started to grow in the 1960's. However, during the Pol Pot regime (1975-79), both state and
privately owned manufacturing firms suffered extensive destruction and deterioration, and many of
those skilled in entrepreneurial and management functions were killed or emigrated.
In 1985 a process of reform from a centrally planned economy to a market-oriented economy
was initiated. Private sector activities were allowed. Key reform measures included the restoration ofprivate ownership of property. In 1989, the reform process was accelerated further. Under this
programme liberalization allowed for privatization of state-owned enterprises and encouraged
investments from the foreign and local private sectors.
With the improvement of infrastructure (including power and water supply) and the adoption
of an investment law in 1994, the manufacturing sector received significant momentum fordevelopment. The most active areas are garments, wood processing, food processing, beverages and
soft drinks and production of construction materials.
Manufacturing (value added) remained at a relatively low 18.2 per cent of GDP in 1996,
though it has been growing at a more rapid pace than agriculture (over 10 per cent on average over the
period from 1990-1995).
Services
Services is a large field covering many sectors of economic life such as transport,
telecommunication, banking and tourism.
In Cambodia, the services sector accounts for about 40 per cent of Gross Domestic Product
(GDP). The largest sub-sect or is trade-related services (12.7 per cent of GDP in 1995), and the fastest-
growing sub-sector is construction services (See VI.1, below). For the period from 1995 to 2000, the
annual growth rate of the service sector is expected to average about six per cent per annum.WT/ACC/KHM/2
Page 5
INDICATORS 1992
actual1993
actual1994
actual1995
actual1996
actual1997
actual1998
estimate1999
projected2000
projected
2-GDP by industrial origin
2.1-Annual Change %
REAL GDP
Agriculture
IndustryServices7.1%
0.3%
6.7%9.6%7.4%
4.1%
19.3%
7.3%7.1%
0.5%
15.0%11.6%7.6%
6.4%
10.1%
8.0%7.0%
2.4%
18.2%
7.3%1.0%
0.8%
0.3%1.5%3.0%
3.6%
1.6%3.0%7.5%
3.9%
14.8%
7.9%7.7%
4.6%
14.0%
7.8%
2.2-Share of GDP %
NOMINAL GDPBns R.
Agriculture
IndustryServices2509
100%
46.4%
13.0%40.7%5414
100%
45.8%
15.0%39.2%6131
100%
43.1%
16.3%40.7%7200
100%
43.5%
16.6%39.9%8250
100%
42.3%
18.3%39.4%9100
100%
42.5%
18.0%39.5%11000
100%
42.2%
18.0%39.8%12600
100%
40.2%
19.6%40.2%14328
100%
38.6%
21.2%40.1%
Source: Ministry of Economic and Finance (July 1998).
(b) Current economic situation
Cambodia has made significant progress in stabilizing the economy and maintaining
economic growth. Macro-economic development between 1991 and 1996 was impressive: GDP grew
at an average annual rate of about six per cent during this period; inflation, which averaged about 140
per cent per annum during the period of 1990-92, had fallen to 7.1 per cent in 1996; and budget
revenue as a share of GDP doubled between 1991 and 1995.
In 1997, economic growth slowed substantially, due to internal and external factors, reaching
only one per cent. However, growth in 1998 is projected at about three per cent, and thereafter isexpected to return to the pace of 1991-1996.
INDICATORS
1992
actual1993
actual1994
actual1995
actual1996
actual1997
actual1998
estimate1999
projected2000
projected
3-MAIN MACROECONOMIC INDICATORS
Nominal GDP Mns US$
Population Mns
GDP per capita US$Real GDP % increase
CPI average % change
Riel/$ year averageBudget revenue %GDP
Budget expendit. %GDP
Curr. def/surplus %GDPOver. fiscal defi. %GDP
Curr.acc. balance %GDP
External contribution toeconomy % of GDP
*
Total saving % of GDP1506
9.3
162
7.1%
75.0%
1666
6.2%
9.8%
-3.3%-3.6%
-3.3%
3.0%
14.2%1923
9.6
200
4.1%
114.5%
2816
5.4%
11.2%
-1.5%-5.9%
-9.8%
11.3%
17.8%2385
9.9
241
4.0%
-0.5%
2571
9.6%
16.3%
-1.4%-6.8%
-14.5%
17.4%
19.5%2923
10.3
284
7.6%
7.8%
2463
8.9%
17.3%
-0.8%-7.8%
-16.3%
22.2%
21.8%3121
10.7
292
7.0%
7.1%
2643
9.1%
17.2%
-1.3%-8.4%
-15.6%
20.2%
25.9%3033
11.0
276
1.0%
8.0%
3000
9.7%
13.9%
0.7%
-4.2%
-14.6%
17.4%
22.4%2973
11.3
263
3.0%
14.0%
3700
8.3%
13.1%
-0.9%-4.9%
-14.1%
15.0%
21.5%3600
11.6
311
7.5%
6.0%
3500
10.4%
14.1%
1.1%
-3.7%
-14.5%
17.1%
26.7%4094
11.9
344
7.7%
5.0%
3500
11.4%
16.2%
2.2%
-4.5%
-15.3%
17.9%
28.9%
Source: Ministry of Economic and Finance (July 1998)
* Inflows of Official Development Assistance and Foreign Direct Investment as a percentage of GDP.WT/ACC/KHM/2
Page 6
Revenue mobilization
The ratio of Cambodia's total budget revenue to GDP (9.1 per cent in 1996) is very low by
international standards. Performance as regards tax revenue improved from 5.9 per cent of GDP in
1994 to 6.52 per cent of GDP in 1996. Since then, however, performance has remained steady.
Customs revenues made up about 60 per cent of all tax receipts in 1996 (see table below).
This marks an improvement in diversifying the tax base: in 1995 the comparable figure was 72 per
cent.
Because of the relatively weak mobilization of resources and imperative expenditures on
national security, budget discipline has fallen heavily on civilian expenditures (see discussion under
expenditures, below). Nonetheless, strict budget discipline has been maintained and will continue,
since this is the essential underpinning of macro-economic stability. Up until 1997, the deficit in the
current budget was restricted to what could be  covered by external budget support. In 1997, the
current deficit was eliminated. In 1998 a small deficit re-emerged. The capital budget has been
financed almost entirely through external assistance and concessional loans. In the period ahead the
current budget surplus will also be a source of such financing.
Cambodia's tax revenue structures 1994-1996 (in  per cent of GDP)
1994 1995 1996
Tax Revenue 5.9 6.19 6.52
Income tax:
       Individual 0.1 0.02 0.03
       Corporate 0.2 0.24 0.23
       Total 0.3 0.26 0.26
Domestic taxes on goods & services:
      Turnover, sales & VAT 1.1 1.07 1.19
      Excise 0.1 1.13 0.69
      Total 1.2 1.2 1.88
International trade taxes:
      Import 3.9 4.18 4.08
      Export 0.2 0.24 0.1
      Total 4.2 4.42 4.18
Property taxes 0.0 0.0 0.0
Others taxes 0.3 0.31 0.2
Source: Cambodia: From Recovery to sustained development. The World Bank, 1996 Cambodia: Progress in recovery and
reform. The World Bank, 1997
The Royal Government attaches the highest priority to broadening the tax base and enhancing
revenue mobilization. To this end, it adopted, through the Law on Taxation of January 1997, amedium-term tax reform strategy which includes important revenue-enhancing as well as equity-
enhancing provisions. The main revenue-enhancing provisions are:
- Levying the turnover tax on the first sale after importation (previously exempt);
- Broadening the coverage of the excise duties on automobiles, international air travel,
and international telecommunications services;
- Introducing taxes on interest and dividend earnings;
- Strengthening the application of minimum tax levels, including as regards enterprises
granted tax holidays under the Investment Law;WT/ACC/KHM/2
Page 7
- applying a 30 per cent rate of profit tax for oil and gas production-sharing contracts,
and for exploiting natural resources, including timber, ore, gas and precious stones;
- Extending the coverage of taxes on salaries to include Government employees,
elected officials, and employees of NGOs;
- Introducing the withholding of taxes; and
- Replacing taxes on turnover and consumption with a value-added tax (VAT) for
about 1,000 largest taxpayers (from 1 January 1999), and extending it gradually to
others.
With regard to equity-enhancing provisions, the following measures are being implemented:- income from the sale of agricultural outputs, by a person who is not a large taxpayer,
is exempt from profits tax;
- dividends paid to domestic and foreign shareholders are subject to a final withholding
tax; 
- medical services, public transportation, primary financial and insurance services, and
public interest non-profit activities are exempt from VAT.
The Royal Government has thus embarked on a process of fiscal reform designed to enhance
sources of revenue other than customs receipts. By so doing, it intends over the medium-term to
reduce the share of customs receipts in total tax revenue to about 40 per cent. In the near-term,
however, customs duties will remain the single mo st important source of budget revenue. Policies
with regard to tariff rates will need to be shaped in  the light of the key role of customs duties in total
revenue, and the key role of fiscal balance in sustaining macro-economic stability.
Expenditure
Cambodia has made significant progress in expenditure management since the adoption of the
first Budget Law in 1993. Progress also has been made in establishing audit and inspection, Treasury
cash management and accounting. Recent progress includes: assigning financial controllers to eachministry; establishing a system of direct payments by the Treasury; establishing competitive bidding
procedures through the Public Procurement Depa rtment of the Ministry of Economy and Finance
(MEF) (see IV.3.l, below); and adopting a public accounting sub-decree to improve overall budgetmanagement. Through these steps and measures, the Government has succeeded in containing current
expenditures at around 10 per cent of GDP. However, the high level of defense and security
expenditures has resulted in a very limited scope for civilian expenditures.
Cambodia spends about 1.5 per cent of GDP on health and education, compared with an
average of five per cent of GDP for other low-income countries. At the same time, Cambodia's levelof expenditure for defence and security is unusually high. This composition of spending needs to be
changed to support development priorities: expenditure  allocation needs to be significantly re-oriented
toward social sectors and economic infrastructure.  The Government recognizes the need for suchexpenditure re-orientation and it has committed to achieve this in the First Socio-economic
Development Plan (SEDP) - 1996-2000, and the Three Year Rolling Public Investment Programme -
1996-1998 (PIP). The objective is to increase expenditures for health and education to five per cent ofGDP from the current two per cent by the year 2000, and reduce defense and security spending to 3.5
per cent of GDP from the current five per cent. To achieve these objectives, the Government will first
need to strengthen the capacity to monitor and control budgetary expenditures through fullimplementation of the recently introduced measures such as the assignment of financial controllers,
direct payment systems, and competitive bidding procedures.WT/ACC/KHM/2
Page 8
Current expenditure by sector
INDICATORS 1992
actual1993
actual1994
actual1995
actual1996
actual1997
actual1998
actual1999
Project.2000
Project.
5-CURRENT EXPENDITURE BY SECTOR (1994-1999)
In Mns US$
Total Curr. Exp.
o.w.
-Defense-security-Education
-Health
-Agric. &Rural Dev.
In % of Total Curr.
Exp-Defense-security
-Education
-Health-Agric. & Rural Dev.-
-
-
-
-
-
-
-
---
-
-
-
-
-
-
-
--257.6
152.3
24.0
11.7
5.3
59.1%
9.3%
4.5%2.0%299.1
174.9
30.0
10.6
6.2
58.5%
10.0%
3.5%2.1%298.8
153.8
30.5
16.1
6.9
51.5%
10.2%
5.4%2.3%272.0
139.8
27.8
15.1
5.6
51.4%
10.2%
5.6%2.1%262.3
149.2
20.5
12.6
5.1
56.9%
7.8%
4.8%1.9%327.2
144.0
42.5
23.1
9.1
44.0%
13.0%
7.0%2.8%-
-
-
-
-
-
-
-
--
Source: Ministry of Economy and Finance
Investment
The economic performance in the medium-term will depend on the initiative and dynamism
of the private sector. The Government recognizes that the private sector is serving as the engine of
economic growth while the Government is acting as a strategist. In this connection work is being doneto establish a proper legal basis and transparent incentive framework necessary to support broad-based
expansion of the private sector. A substantial rapid inflow of FDI has augmented domestic private
capital formation and fuelled the expansion of private sector-led development, and also shown thepotential of investment opportunities in Cambodia.
Investment trends in Cambodia
Year Number of projects Investment amount
(in US$)Number of workers
1994 37 594,098,016 21,552
1995 164 2,379,469,223 48,772
1996 182 803,288,745 71,731
1997 206 759,291,881 130,465
1998 142 849,612,390 115,817
Note: "Investment amount" and "number of workers" refer to declared magnitudes in the investment projects approved,
rather than actual out-turns.
Source: The Cambodian Investment Board (CIB).
2. Economic Policies
(a) Main directions of the ongoing economic policies, tactical and strategic goals of the economic
policies, pricing policy, economic development plans, privatization plans, sectoral priorities,
regional development plans, etc.
For over a decade before 1990 the Cambodian Economy was organized predominantly along
centrally-planned lines. Some economic liberalization began in 1985, and this accelerated after 1989
with the restoration of private property rights, the abolition of official procurement and the freeing of
all prices, except for electricity and water.WT/ACC/KHM/2
Page 9
Since the signing of the Paris Peace Accord in 1991, the reform process has been deepened
and widened significantly to the point that the country is now operating a market economy system.
Moreover the Royal Government is committed to strengthening this system and, over recent years,has been enacting legislation, adopting policies, creating institutions and adopting procedures as part
of reform in order to quicken the pace of economic transformation and structural change.
However, such structural change will inevitably  be a long process. Therefore, the following
strategies to develop the country will remain very significant for the future:
- Reforming the administrative and judicial in stitutions of the State in order to adapt
the public service and the judicial system to the needs of a market economy and of a
liberal, democratic society;
- Promoting political and economic stabilization and growth. The Royal Government
continues to pursue economic and financial stability. Fiscal policy is a key to
stabilization, rehabilitation and development. For stability, the fiscal deficit will bekept to what can be financed through non-monetary means;
- Establishing a legislative and regulatory framework conducive to an attractive, fair
and stable investment climate;
- Providing required physical infrastructure;
- Developing human resources through upgrading human skills and adapting them to
the market economy;
- Gradually integrating the country into the regional and world economies; and
- Optimizing sustainable utilization of the natural resource base.
Economic Development Programmes and Sectoral Priorities
According to the First Socio-Economic Development Plan 1996-2000, which was adopted in
1996 by the Royal Government, the main elements of the Government's economic development
programme can be identified as follows:
 Agriculture and rural development
 
 The Government sees agricultural and rural development as major instruments for eradicating
poverty and improving the living standards of the people. The First Socio-Economic Development
Plan states that:
 
- A prime objective of the Royal Government is to achieve food security for all the
population.
- The basic goals of the Royal Government in the agriculture sector are to:
- Ensure food security through expansion in the production of rice, or its availability
through the market, and of secondary food crops;
- Contribute to economic growth and to foreign earnings through exports; and
- Improve income opportunities for farm hous eholds by diversifying crop production.
- The economic development programmes in agriculture call for:
- Achieving food security and rice export capacity;
- Controlling water resources, in particular through irrigation, in order to minimize
local and national   fluctuations in rice output;WT/ACC/KHM/2
Page 10
- Developing commercial crop production, such as rubber;
- Expanding livestock production;
- Achieving the sustainable development of fisheries;
- Ensuring sustainable social benefits from the sustainable exploitation of forest
resources;
- Improving agricultural planning and policy making.
 
 Industrial development
 
 Under programmes of reform major initiatives  are being undertaken by the Government to
stimulate and accelerate industrial development, including:
 
- Privatization of state-owned enterprises;
- Encouragement of foreign direct investment (FDI) and national private sector
investment in industry through the adoption of the Law on Investment (August1994), and the implementing Sub-decree (December 1997) (see 2(d), below).
- Securing access to international markets through application for membership in
ASEAN and WTO, and the obtaining of GSP and MFN status from major tradingpartners;
- Adoption of plans for the promotion of growth centers throughout Cambodia for
industrial development by improving basic infrastructure for transportation andcommunication, the establishment of industrial estates, export processing zones and
free-trade zones etc.
 
 Based on Cambodia's comparative advantages in the industrial sector, an appropriate strategy
for the development of manufacturing during 1996-2000 involves the incorporation of a number of
different strands. These are outlined below:
 
 Export Orientation
 
 For reasons of macro economic balance, it is important for Cambodia to promote exports, in
both agricultural and industrial sectors, as well as through tourism. Moreover, the reason for adopting
outward(export)-oriented industrial development policy is the small size of the domestic market interms of purchasing power.
 
 - Labour Intensity
 
 To deal with the emerging problem of urban unemployment and a rapidly growing
workforce, Cambodia has started out with labour-intensive manufacturing for export, and will seek tomove towards more technologically-sophisticated and capital-using activities in the future.
 
  - Natural-Resource Utilization
 
 Cambodia will build on its comparative advantage by developing natural-resource-based
industries of different kinds, including agro-based, wood-based, fisheries-based and  non-metallic-mineral-based industries.
Private sector development and Privatization
Beginning in 1987, the Government encouraged private-sector activities. A "family collective
economy" in the agricultural sector quickly developed. Nationalized industries began to receiveWT/ACC/KHM/2
Page 11
autonomy from the state planning system in 1988. Rights  to inheritance and to traditional use of land
titles were restored to individuals in early 1989. The new constitution, adopted in September 1993,
enshrined the right to private ownership, including the right of individuals or legal entities of
Cambodian nationality to own land. Citizens are free to trade.
 
 Privatization has taken place in two phases: the first from 1991 until mid-1993 and the
second after April 1995 when new privatization regulations were approved. UNTAC halted
privatization for the interim period until a new government was elected and standardized procedures
could be put in place.5
 
 During the first phase (i), the authority to sell and lease State enterprises rested with the
sectoral ministries with no provision for external approval; (ii) attracting foreign investors was a highpriority; (iii) maintaining current levels of employ ment was considered crucial. The results reflect
these priorities. Ministries simply privatized th eir own enterprises, negotiating the terms of the
sales/leases and bringing revenues directly into the Ministries' budgets. A condition of both sales and
leases was that the new enterprise should deal with their employees following certain norms. Workers
could be laid off, but the owner was required to pay severance pay of one month's salary per year ofemployment, with a minimum of three month's sa lary and a maximum of ten month's salary. The
Government allowed managers to avoid layoffs by  paying non-working employees 60 per cent of a
wage of US$40 per month. (There is no general minimum wage in Cambodia, but a minimum of
US$40 per month was set for this purpose only.) Leases were long term, for up to 70 years, with rents
adjusted at five-year intervals. Many buildings that were sold and leased reportedly were of littleutility and discarded with the real value of the sale/lease residing in the land.
 
 Following a two-year hiatus initiated by UNTAC, the second phase began in April 1995, with
the approval of privatization regulations designed to tighten and centralize control over the process.
An inter-ministerial privatization committee under the leadership of the Ministry of Economy andFinance was established and was operational by July 1995. This committee is charged with preparing
a privatization programme, including: (i) compiling a list of all enterprises  (ii) formulating strategies
for privatizing them; and (iii) monitoring the process.
The results so far of these processes are laid out in the table below.  As may be seen from that
table, as of end-December 1997, 99 State-Owned Enterprises had been privatized, and one enterprise
closed. Of the remaining 57 State-Owned Enterprises, seven are joint ventures. However, such joint
ventures involving the National Bank of Cambodia are expected to be fully privatized. Of theremaining non-joint-venture enterprises, 16 will be privatized, and 17 will be closed.  According to
the First Socio-Economic Development Plan , a certain number of State-Owned Enterprises should not
be or cannot be privatized for a variety of reasons. These enterprises perform essential roles in theCambodian economy and they provide public services that otherwise would not be available from the
private sector in the foreseeable future. Altogether  17 enterprises have been put in this category,
including railway, water and electricity enterprises. However, for the latter two, the Government isworking to grant them financial autonomy.
                                                     
5 In accordance with the Paris Peace Accords, the United Nations Transitional Authority in Cambodia
(UNTAC) exercised direct control over finance from April 1992 until September 1993.WT/ACC/KHM/2
Page 12
State Owned Enterprises: 1989-1997
Privatization:
1989/1995Privatization in 1996/1997Situation as of end 1997
Parent entity
Leased Sold Leased Sold ClosedTo be
privat-
izedTo be
closedJoint
ventureTo
remain
as SoETotal
Council of
Ministers0 2 0 0 0 1000 1
Municipality of
Phnom Penh8 0 3 0 0 0004 4
N B C * 0 0 0 0 0 0032 5
Ministry of:
A g r i c u l t u r e 6 1 1 0 0 7720 1 6
C o m m e r c e1 0 1 1 1 6000 6
C u l t u r e 0 2 0 0 0 0001 1
Industry 41 16 6 3 0 2001 3
H e a l t h 0 0 0 0 0 0011 2
Public Works
and Transport40300 0 1 0 1 81 9
T o t a l 6 02 11 4 4 1 1 6 1 7 7 1 7 5 7
 * It is expected that the National Bank of Cambodia will, in due course, divest itself of its interest in all joint
ventures.
(b) Monetary and Fiscal Policies
Pricing Policy
The role of prices in the economic system started changing in 1989 when the State order
system under which farmers were compelled to sell a portion of their output to the State at below-market prices was abolished. State intervention in commodity markets has now totally disappeared.
Prices are market-determined and are open to the influence of international trade. Commodity price
subsidies and subventions to State-owned enterprise have been eliminated.
Monetary Policy
As clearly stated in Article 3 of the Law on the Organization and Conduct of the National
Bank of Cambodia, the principal mission of the Central Bank is to determine and direct monetary
policy aimed at maintaining price stability in orde r to facilitate economic development within the
framework of the Royal Government’s economic policy. To this end, the National Bank of Cambodia
has maintained a restrained monetary environment since the May 1993 General Election,
characterized by the absence, until 1998, of any bank financing of the budget. Outstanding net-bankcredits to the Government declined steadily between December 1993 and end-1997.
The restrained monetary policy together with other exogenous factors have brought the rate of
inflation down from an annual average of 114 per cent in 1993 to 7-8 per cent in 1995-1997. Inflation
is estimated at 14 per cent in 1998, but is expected to drop to 6 per cent in 1999.
To help control liquidity, The National Bank also introduced in February 1994 a reserve
requirement system. The reserve requirement is five per cent of deposits and other liabilities and is
maintained as a combination of average vault cash (R iels) together with average Riel balances at the
National Bank. Banks are temporarily permitted to maintain a part of their reserves in US dollar
deposits. However, the current high level and uneven distribution of banks' excess reserves make this
system an ineffective instrument of policy at this stage.WT/ACC/KHM/2
Page 13
The current instruments of monetary control are a limit to bank financing of the budget,
reserve requirements, the sale of foreign currency by the NBC and a positive real interest rate
underpinned by the NBC’s prime refinance rate. The planned introduction of Treasury bills isexpected to add to the existing instruments of monetary policy.
Development of the Banking System (see also VI 2, below)
In 1980 the country’s central bank was re-established as  "the People’s National Bank of
Cambodia" under a Soviet-style mono-banking system with its branches spread throughout theprovinces. The role and functions of the National Bank at that time were currency issue, treasury
operations for the Government, lending to the economy (mostly to the public sector), and effecting
international settlements.
To establish a modern financial sector, the banking system reforms which were initiated in
1989 focused on the transformation from a mono-bank to a two-tier system by completing the divisionof responsibilities between central and commercial banking activities.
In 1990 the National Bank transferred its treasury function to the Ministry of Finance (now,
Ministry of Economy and Finance). The Government  has also allowed the entry of foreign banks
since 1991. In 1992 the Central Bank Law and Sub-Decree on the renaming, re-organization and
functions of the National Bank were promulgated by the State of Cambodia.
6 Section 2 of the Law
states that the National Bank of Cambodia is a State bank and shall rank as a Ministry  reporting  to
the  Council  of  Ministers .
The role and status of the NBC was significantly revised in the new central bank law passed
by the National Assembly on 26 January 1996.
The current banking system in Cambodia is a two-tier system, consisting of the Central Bank
and commercial banks. The Central Bank, named National Bank of Cambodia, NBC, is the Monetary
Authority and enjoys operational autonomy. The commercial banking system consists of 31 banks, ofwhich one is a state owned bank, 22 are privately owned commercial banks, seven are foreign bank
branches, and one is a representative office.
The National Bank of Cambodia is putting in place a bank supervision system that will
effectively respond to the challenges posed by the recent proliferation of commercial banks in
Cambodia.
The supervisory capacity of the National Bank has been further strengthened with the
implementation of existing prudential norms.
The National Bank has revamped the licensing procedures for commercial banks in order to
ensure that the new licenses will be issued only to banks with an adequate capital base and a soundmanagerial track record.
Commercial Banking Law
The National Bank of Cambodia has drafted the Commercial Banking Law to be submitted to
the National Assembly as soon as possible Once this becomes law it will strengthen the legal basis for
                                                     
6 The State of Cambodia, one of the four parties to the Paris Peace Accords, administered most of the
territory of Cambodia, under this name and the designation People's Republic of Cambodia, from 1979 to 1993.WT/ACC/KHM/2
Page 14
bank licensing, banking operations, supervision, liquidation of financial institutions, conduct of
securities activities, and documentation of financial institutions (see also section on trade-related
services regime: sub-section 2 on banking and other financial services, below).
Fiscal Policy
Fiscal policy will remain at the core of the Government's adjustment and reform strategy. The
medium-term agenda aims at strengthening the role of the budget as the key tool of economic
management and at developing a fiscal structure that generates the domestic resources required forincreased public expenditure in priority social areas while safeguarding financial stability. The main
fiscal target was the elimination of the deficit in the current budget by 1997, which has been achieved
(although some backsliding occurred in 1998). This is to be followed by progressive increases inGovernment savings to raise the domestic contribution to the financing of the public investment
programme.
As mentioned above, revenue mobilization will be the key element in the Government's fiscal
strategy. To achieve the targeted increase in the revenue ratio from the current nine per cent of GDP
(one of the lowest in the world) to 13 per cent by the turn of the century, the Government will act ontwo fronts: putting in place the elements of a modern tax system and strengthening the administrative
capacity to collect taxes. A comprehensive reform of Cambodia's tax system was adopted in January
1997. The Government will proceed rapidly with implementation of the provisions of the new Law ontaxation, including a value-added tax for the largest enterprises (about 1,000), which was introduced
in January 1999. Plans are underway to introduce the remaining elements of a modern tax system, in
particular land and property taxation, during the course of 1999.
To improve budgetary performance and transpar ency, an Internal Budget Monitoring and
Discipline Unit has been established at the Ministry of Economic and Finance. Internal monitoringand control will be improved through implementation of the recently adopted law and sub-decrees
establishing a National Auditing Authority and strengthening inspection procedures and the Treasury's
cash management function.
(c) Foreign exchange and payments system, relations with International Monetary Fund,
application of foreign exchange controls if any
The Government’s external policies are aimed at fostering the country’s reintegration into the
regional and world economies. These policies are guided by the objective of maintaining a market-based exchange rate within a framework of liberal,  market-oriented exchange, foreign investment, and
trade regimes.
A free, market-based exchange rate has been in place since 1993. Initially, the official
exchange rate was determined daily within a certain spread from the parallel market rate. Recently the
spread has been eliminated entirely and the official exchange rate is now set at the market rate of theprevious day.
The National Bank will continue to pursue a market-based exchange rate policy and will
continue to base the official rate on the market rate.
As relative macroeconomic stability was restored and the credibility of financial policies
improved, relative exchange rate stability was achieved during 1994-1996. However, the exchange
rate remained subject to a large range of shocks, and the financial crisis in neighbouring countries
contributed to a depreciation of the Riel in 1997 and 1998 (see tables A1-5 and A1-6). To cope withWT/ACC/KHM/2
Page 15
such shocks, the National Bank organizes US dollar auctions from time to time in order to smooth
exchange rate fluctuations and to strengthen public confidence in the local currency.
The current legal basis for Cambodia’s foreign exchange system is the law on Foreign
Exchange that the National Assembly approved during its 8th session in 1997. To facilitate external
transactions and to encourage private investment in Cambodia, the law ensures no restrictions onforeign exchange operations through book entry. However, such operations should be undertaken
solely through authorized intermediaries. Export or import of bank notes and other means of payment
equalling or exceeding US$10,000 is subject to a declaration only.
Interest Rate Policy
On 15 June 1994, the National Bank introduced a system of fixing a minimum interest rate on
3-month Riel deposit accounts to be used by commercial banks as a base rate for their Riel deposit
taking, but giving commercial banks discretion in setting loan rates. The minimum rates on Rieldeposits were set so as to ensure that deposit rates were positive in real terms. Subsequent experience
showed that interest rates had little impact on depo sit growth with the banks. This reflects the lack of
public confidence in the local currency and the banking system due to Cambodia's historical legacy; italso underlines the lack of interest among commercial banks in doing business in Riel. The above
interest rate requirement was lifted and both lend ing and deposit rates were completely liberalized in
March 1995.
In April 1995 the National Bank began to set and announce the base rate for a refinancing
facility to commercial banks as a credit window operation. The rate is presently one per cent permonth. No doubt this arrangement will become instrumental in helping develop a liquid secondary
market in Treasury bills which the Royal Government is planning to introduce soon.
Relations with IMF
In late 1992 a reform programme designed to improve the budgetary situation and reduce
monetary expansion was put in place. In 1993 this programme was supported by a drawing on the
IMF’s Systemic Transformation Facility. To further support the Government’s 1994-96 economic
adjustment and reform programme, in 1994  the IMF approved a drawing, over three years, under theEnhanced  Structural  Adjustment  Facility (ESAF) totalling SDR 84 million. Half of this was drawn
during 1994-1995.
Along with this payments support, the IMF has provided technical assistance to Cambodia in
the areas of tax and customs administration, central banking supervision, tax reform and fiscal
management, and balance of payment statistics. Overall, the objectives set out in the technicalassistance programme have been met and a sound foundation has been put into place.
Cambodia made considerable progress in economic and social recovery under the medium
term reform programme: growth was robust, the budget situation improved significantly, monetary
expansion slowed markedly, inflation fell into single digits, the exchange rate stabilized and recourse
to central bank credit was virtually eliminated.
However, there were also some delays and difficulties in implementing some of the measures
to mobilize domestic resources and strengthen public resource management. These led to thepostponement in 1996 of the 4th instalment of the ESAF drawing. Cambodia currently has no
programme supported by the IMF.WT/ACC/KHM/2
Page 16
The Government recognizes that the sustainability of the reform process will hinge critically
on determined efforts to improve governance and establish the rule of law in all spheres of activity.
(d) Foreign and domestic investment policies
The Law on Investment was adopted by the Nati onal Assembly of the Kingdom of Cambodia
on 4 August 1994, and the implementing Sub-Decree was approved by the Council of Ministers on
29 December 1997. This law governs all investment projects within the Kingdom of Cambodia,
without any distinction based on the nationality of the investor, except as regards ownership of land
(see below). Investors submit investment applications to the Council for the Development of
Cambodia / the Cambodian Investment Board (CDC/C IB) for review and decision. The applications
should be processed by CDC /CIB within a period of 45 days maximum following the date ofsubmission of the complete investment application.
Ownership of land for the purpose of carrying out  investment activities shall be vested only in
natural persons having Cambodian citizenship, and in enterprises that are at least 51 per cent owned
by Cambodian citizens. Use of land shall be permitted to foreign investors, including long-term leases
of up to 70 years, which may be renewed.
The law offers overseas and local companies attractive and competitive financial incentives  as
follow:
- nine per cent corporate income tax
- tax holidays of up to eight years in respect of the corporate income tax
- full import duty exemptions for export-oriented projects
- unrestricted repatriation of profits
- no nationalization
- no withholding tax on dividends
- five-year loss carry-forward
There is a transparent set of rules and criteria for determining the extent to which a given
investment project will benefit from incentives. These are laid out in Sub-Decree 88 of
29 December 1997.
(e) Competition policies
Currently, there is no competition law in Cambodia.
3. Foreign Trade in goods and services: volume and value of trade, exports and imports,
foreign trade balance, structure of trade, trade by geographic areas and dynamics of
trade, accompanying statistical data and information on publications  (Annex 1 refers)
The value of foreign trade in goods rose at rapid rates during 1993-1997: the average annual
growth of retained imports was 28 per cent, and the average annual growth in domestic exports was
40 per cent.
The balance of trade in goods for 1993, 1994, 1995, and 1996 amounted to US$ -188 million,
US$ -255 million, US$ - 333 million, and US$ - 428 million respectively. It is estimated that in 1997
the trade deficit declined to $328 million.WT/ACC/KHM/2
Page 17
The main import partners for 1997 were Thailand, with 18 per cent of imports: Singapore
(10 per cent); Vietnam (10 per cent); Japan (7 per cent); Taiwan (7 per cent); China (6 per cent); Hong
Kong, China (5 per cent); and Malaysia (5 per cent).  (See table A1-18.)
The main export partners for Cambodian products in 1997 were Thailand with 26 per cent of
domestic exports; the United States (17 per cent); Singapore (15 per cent); China (9 per cent);
Vietnam (7 per cent); and the United Kingdom (6 per cent).   (See table A1-19.)
Statistics related to trade in services are maintained only at the aggregate level (see table A1-
4). During the period 1992-1997 the growth in the value of service receipts fluctuated widely from
year to year. The average annual rate of growth during the period was 33 per cent, with service
receipts reaching US$160 million in 1997. Much of this increase was accounted for by tourism.  Thevalue of service payments rose over the same period at an average annual rate of 28 per cent, reaching
US$188 million in 1997.
Detailed foreign trade statistics on goods are provided in Tables A1-7 through A1-19 located
in Annex 1.
5. Information on financial movements relate d to nationals working abroad, remittances
etc.
Currently, there are relatively few Cambodian nationals working abroad and no information is
available regarding their remittances or other fina ncial movements associated with their activities.
III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
1. Powers of executive, legislative and judicial branches of government
Cambodia is a constitutional monarchy. The Constitution adopted in September 1993
stipulates that the Monarch is the Head of State for life. The Monarch appoints the Prime Minister and
the Council of Ministers. Upon presentation by the Council of Ministers, the Monarch signs decrees
of appointment, transfer and dismissal of high civil and military officials, and upon presentation by
the Supreme Council of the Magistracy, signs decrees to appoint, transfer or dismiss judges. The
Monarch appoints the Commander-in-chief of the Royal Khmer Armed Forces, declares war upon
approval of the National Assembly, and, upon approval by the Prime Minister and the President of theNational Assembly, may declare a state of emergency. The Monarch receives letters of credentials
from foreign ambassadors to the Kingdom of Cambodia, and, upon approval by the National
Assembly, signs and thereby ratifies international treaties and conventions.
Powers of the Legislature
Legislative powers are exercised by the National Assembly (lower house) and the Senate
(upper house). The National Assembly consists of 122 members elected simultaneously for five-year
terms of office. Members are elected directly by the electorate at large.
The National Assembly is the only organ empowered to adopt laws. The National Assembly
approves the national budget and various government development strategies and programmes. It
approves proposals of the Government to borrow or to lend, and imposes, alters or annuls taxes.
In order to fulfill its tasks, the National Assembly is endowed with the following
commissions:WT/ACC/KHM/2
Page 18
- Human rights and complaints;
- Finance and banking;
- Economics, planning, investment, agriculture, rural development and environment;
- Interior, national defense, investigation, anti-corruption;
- Foreign affairs, international cooperation and information;
- Legislation;
- Education, religious affairs, culture and tourism;
- Health, social affairs, labour and women's affairs;
- Public works, transportation, telecommunications, post, industry, energy and
commerce.
The commissions may invite Ministers to give explanations in their fields of responsibility. In
addition, National Assembly members may submit written questions to the Royal Government
through the President of the National Assembly, and replies must be provided within seven days of
receipt of the questions.
Legislation may be proposed by National Assembly members or by the Prime Minister. To
date, however, the usual procedure has been characterized by the following successive steps:
- preparation of a draft law by the technical line ministry concerned;
- discussion of the draft law in inter-ministerial meetings;
- study of the draft law by the Council of Jurists of the Cabinet of the Council of
Ministers ( who check for conformity with the Constitution, compatibility with
existing legislation, etc.)
- examination and adoption of the draft law by the Council of Ministers;
- submission by the Prime Minister to the National Assembly;
- examination by the relevant specialized commission of the National Assembly;
- examination and adoption by vote at a plenary session of the National Assembly.
- submission to the Monarch for promulgation.
 
The National Assembly adopts legislation by a simple majority of all members. It may pass a
vote of no confidence in the Government by a two-thirds majority of all members. Laws approved by
the National Assembly and signed by the Head of State are effective in Phnom Penh within ten days
after signing and are effective within twenty days throughout the country. Any law that runs counter
to the principles laid down in the Constitution can be annulled by the Constitutional Council, the only
organ having such powers. It is composed of nine member with a term of office of nine years. Three
members are appointed by the Monarch, three by the National Assembly, and three by the Supreme
Council of Magistracy.
The President of the National Assembly is selected by a two-thirds vote of the members of the
National Assembly. The President of the National Asse mbly is a member of the Council of the Throne
(the body that determines the succession to the throne) and acts as the Chief of State when the
Monarch is absent from Cambodia or otherwise unable to fulfill those functions.
Powers of the Executive
The Council of Ministers are the Royal Government of the Kingdom of Cambodia. The Royal
Government is the executive arm of the state. It is in charge of the overall execution of all nationalpolicies and programmes, and is responsible and accountable to the National Assembly.
At present, the Council of Ministers consists of a Prime Minister; two Deputy Prime
Ministers, each also in charge of a separate ministry; four Senior Ministers or Ministers of State, twoWT/ACC/KHM/2
Page 19
of whom are also in charge of separate ministries; eighteen ministers; six Secretaries of State
reporting directly to the Council of Ministers; and twenty-two Secretaries of State attached to
different ministries.
The Prime Minister chairs meetings of the Council of Ministers, which can take full decisions
concerning any type of activity of the Government , which decisions bind the Government as a whole.
The Prime Minister, through his regulatory authority, executes all decisions adopted by the
Council of Ministers. The Prime Minister presents Decrees (Kret) to the Monarch for signature. The
Prime Minister can also issue on his own authority Sub-Decrees (Anu-Kret), after the approval of the
Council of Ministers. Individual Ministers issue Ministerial Prakas, and decisions and circulars.
Provincial Governors issue decisions and circulars (see table below for the hierarchy of variousofficial actions). All regulatory acts, whether by the Royal Government or by a Ministry, are
published in the Official Journal once they are signed.
 The Prime Minister can undertake the negotiation of treaties, international conventions, and
intergovernmental agreements concerning economic, technical, cultural, and defense cooperation. Theratification and promulgation of such treaties, agreements and conventions are undertaken by the King
after approval by the National Assembly.
The Prime Minister can present for nomination by the Monarch by way of a Royal Decree
(Reach-Kret) the following high-ranking civilian and military officials: members of the RoyalGovernment, the Governor and Deputy-Governor of  the National Bank of Cambodia (the Central
Bank); Under-Secretaries of State; Advisers to the Royal Government and to the Prime Minister;
General-Secretaries of the Royal Government; General-Secretaries and Directors-General of
Ministries; Delegates of the Royal Government; Governors of provinces and municipalities;
Ambassadors; Extraordinary and Plenipotentiary Envoys; the Military Chief of Staff; General Officersof the military.
The Prime Minister appoints directly through a Sub-Decree other high ranking civilian,
military and foreign-service officials, Deputy-Governors of provinces and municipalities; Chiefs of
District (Srok) and urban divisions (Khan).
Powers of the judiciary
The adjudicate courts of the Kingdom of Cambodia are divided into three levels, namely the
provincial, municipal, and military courts on the lower level, the Appellate Court, and the Supreme
Court.
Provincial and Municipal Courts located in the various provinces and municipalities are lower
adjudicate courts whose jurisdictions cover respectively the territory of those provinces and
municipalities. The Military Court located in the municipality of Phnom Penh is also a lower
adjudicate court whose jurisdiction covers the whole territory of the Kingdom. The Appellate Court
and the Supreme Court located in the municipality of Phnom Penh are higher courts whosejurisdictions cover the whole territory of the Ki ngdom. Any intervening party, prosecutor or the
accused, may appeal to the Appellate Court decisions of trial courts. Appeals must be filed within a
period of two months from the day judgment is pronounced in court if the accused is present; fifteen
days are added to this period if the judgment is rendered in absentia.
According to the Constitution, the Supreme Court exercises judicial review of the law and
adjudicates questions of law in cases appealed from the Appellate Court; the Supreme Court
envisaged in Article 109 of the Constitution adopted on 21 September 1993 has not yet beenWT/ACC/KHM/2
Page 20
established. Pending its establishment appeals of decisions rendered by Appellate Courts are heard by
the Supreme Court Established by the State of Cambodia7.
The courts of all levels adjudicate their trials  based on laws currently in force, or in their
absence, on laws and provisions adopted by the Supreme National Council (a body that existed duringthe period of the United Nations Transitional Authority in Cambodia), or any other existing laws that
are not contrary to the Constitution. In civil cases, when the law is explicitly silent or when there is a
gap where the law does not stipulate any legal provisions, cases may be tried based on custom,
traditions, conscience and equity.
The Constitution specifies that the judiciary shall be independent. To this end, it stipulates
that a Supreme Council of Magistracy shall be established in order to guarantee the independence ofthe judiciary, maintain discipline for judges, and to ensure the good functioning of the courts of the
Kingdom. The National Assembly adopted the law on the organization and composition of the
Supreme Council of Magistracy in December 1994.
The Supreme Council of Magistracy decides on recommendations to His Majesty the King
regarding the appointment, transfer, suspension or  removal of all judges and prosecutors. The
Supreme Council of Magistracy provides recommendations regarding the promotion of judges and
prosecutors, and acts as a disciplinary council for matters involving disciplinary actions to be taken
against judges and prosecutors.
The first meeting of the Supreme Council of Magistracy occurred in late 1997.
The Hierarchy of Various Official Actions taken in accordance with the Constitution
I International Level
Treaty
Convention
Agreement
II National Level
Law
Royal Decree ( Kret Royal )
Sub-Decree  of the Royal Government (Anu-kret)
Decision of the Royal Government
Circular of the Royal Government
Instruction of the Royal Government
Ministerial or inter-ministerial decrees (prakas)
Circular of provinces, municipalities
2. Government entities responsible for making and implementing policies affecting foreign
trade
The Royal Government (i.e., Council of Ministers) is responsible for establishing the
Kingdom's economic policy, including policy on foreign trade.
Foreign economic policy is overseen by the Ministry of Foreign Affairs and International
Cooperation (MFA & IC). General economic policies, foreign trade policies and trade related policies
are prepared, developed, and coordinated through the Ministry of Economy and Finance (MEF), the
                                                     
7 The State of Cambodia, one of the four parties to the Paris Accord, administered most of the territory
of Cambodia under this name and the designation  Peoples' Republic of Cambodia, from 1979 to 1993.WT/ACC/KHM/2
Page 21
Ministry of Commerce (MoC), the Council for th e Development of Cambodia (CDC), the National
Bank of Cambodia (NBC), the Ministry of Planning  (MoP), and the Ministry of Industry, Mines and
Energy (MIME).
Royal-Decree No 0196/18 dated 24 January 1996 establishes the organization and functioning
of the MEF.
The MEF is charged with maintaining macro-economic stability and an economic
environment conducive to growth. It collaborates with other ministries in formulating the strategic
policy of the Government for integrating the Cambodian Economy into the regional and global
economies. It prepares the national budget and oversees the execution of that budget once it is adopted
by the National Assembly. It collects tax and non-tax revenue, including customs duties. It preparesdraft laws on financial matters and implements such laws once they are promulgated. It administers
and oversees government procurement activities. It proposes to the Government changes in import
tariffs, and implements tariff and other trade policies through the Department of Customs, which is an
integral part of the Ministry.
The Customs Department is the operational ar m of the Ministry of Economy and Finance as
regards the border control of international trade. It is charged with the preparation of proposals as
regards the tariff schedule; with implementing all laws  with regard to foreign trade; with collecting
taxes and duties on imported and exported products; and with suppressing smuggling and other
evasions of the law bearing on international trade.
Sub-Decree 54 dated 22 September 1997, establishes the organization and terms of reference
of the Ministry of Commerce. Except as regards tax and investment matters, the Ministry is
responsible for laws, rules and regulations governing domestic and foreign business activities. The
Ministry of Commerce registers all business enterprises (see below), participates in the formulationand implementation of international trade policy, and is the focal point for the Government’s activities
with respect to WTO accession. Through CAMCONT ROL (a body under the Ministry of Commerce)
it participates in border control and the setting and implementation of technical standards (see IV.3.(b)
below). It is responsible for developing and implementing the Government’s policies on protection of
intellectual property rights as regards trademarks.
The Investment Law of 5 August 1994 established the Council for the Development of
Cambodia (CDC) and defined its activities (see  also Sub-Decree 51, 26 June 1995). The CDC
implements the Investment Law in accordance with Sub-Decree 88 of 29 December 1997, inter alia
by reviewing and approving investment licence applications, granting duty and tax exemptions and
other incentives to investors, approving land and building use and arranging visas and work permits
for foreign employees (see II.2.(d)).
The Law on the Organization and Conduct of the National Bank of Cambodia adopted on
26 January 1996 establishes the functions and organi zation of the National Bank of Cambodia (NBC).
The NBC determines, in consultation with the Royal Government, monetary and exchange-rate
policies, and implements such policies. It licenses, regulates and supervises banks, financialinstitutions, financial auditors and liquidators, as well as firms operating in the foreign exchange
market and the markets for precious stones and precious metals.
Sub-Decree 55 SD.ES dated 23 September 1997 establishes the organization and terms of
reference of the Ministry of Planning (MoP). The Sub-Decree envisages the Ministry as an adjunct toa market economy, and in no way a substitute for properly functioning markets characterized by
private ownership of the means of trade and production. The Ministry generates and maintains
statistics on a variety of economic and social indicators, including the national accounts. It develops
methodologies for measuring socio-economic progress. It prepares indicative socio-economic plans,WT/ACC/KHM/2
Page 22
which form the yardstick against which socio-economic progress in the Kingdom is measured. It
prepares the census and other socio-economic surveys. Working with the Ministry of Economy and
Finance, it contributes to the establishment of priorities in the public sector investment programme.
Sub-Decree No 35 dated 26 April 1999 establishes the organization and functioning of the
Ministry of Industry, Mines and Energy. The Ministry has responsibility for fostering an environment
conducive to the industrial and technological development of Cambodia. It manages and implements
national policies on the exploitation of petroleum, gas and minerals. It recommends and implements
policies designed to develop the production and distribution of electricity. It implements water supply
policies in both urban and rural areas.
3. Division of authority between central and sub-central governments
The organization of the administration of the Kingdom of Cambodia are divided and
subdivided into central governmental authority (Roy al Government), sub-central units (provinces and
municipalities), which, in turn, have sub-divisions.
Administratively, Cambodia comprises twenty provinces and four autonomous municipalities
(Phnom Penh, Sihanoukville, Kep, and Pailin). The prov incial (municipal) administration is headed
by a provincial governor (mayor) and one or  more deputy provincial governors (mayors).
The provincial and municipal administrations of the Kingdom of Cambodia come under the
jurisdiction of the Ministry of Interior. The provincial and municipal administrations are therepresentatives of the Royal Government in the provinces and municipalities, and ensure the
implementation within their jurisdictions of all laws, royal decrees, sub-decrees, decisions and other
rules and regulations and ensure the execution of court orders. Provincial and municipal
administrations have responsibility for naming of ficials at the sub-provincial and sub-municipal
levels, and for ensuring that these officials implement laws, royal decrees, sub-decrees, decisions andother rules and regulations of the Royal Government, and that they execute court orders. The
provincial and municipal administrations participat e in the preparation of the national budget as it
relates to their jurisdictions in accordance with the financial law and financial regulations. They issue
land titles and issue operating licenses to businesses with annual profits of less than six million Riels.
Provincial officials may also have responsibilities for overseeing the local provision of services (see
VI.2.a)).
4. Any legislative programmes or plans to change the regulatory regime
 Laws currently under preparation include:
- The Draft Law on Contracts;
- The Draft Law on Bankruptcy;
- The Draft Law on Business Organizations;
- The Draft Law on Arbitration;
- The Draft Law on Trademarks;
- The Draft Law on Products Liability;
- The Draft Law on Corruption;
- The Draft Law on Establishing a Commercial Tribunal;
- The Draft Law on Insurance;
- The Draft Law on Traffic Regulations;
- The Draft Factory Act Law;
- Draft Company Law;
- The Draft Law Providing for an Industrial Zones Authority;
- The Draft Law on Patents and Industrial Design;WT/ACC/KHM/2
Page 23
- The Draft Law on Commercial Banking;
- Draft Law on Customs Code;
- Draft  Law on Copyright;
- Draft Law on the Cambodian National Standards Institute;
- Draft Law on Quality and Safety of Products and Services;
- Draft Law on Audit;
- Draft Law on Medical Services;
- Draft Law on Mining.
- 
5. Laws and Legal Acts  (Annex 2 refers)
A listing of the existing laws and legal acts affecting economic activity and the foreign trade
regime can be found in Annex 2 of this Memorandum.
6. Description of Judicial, arbitral or administrative tribunals or procedures, if any
The principal means, beyond the obvious one of negotiation, of resolution of commercial
disputes in Cambodia are: i) judicial and ii) arbitral.
Judicial:
The judicial option must be divided into recourse to courts in Cambodia and to courts of
foreign jurisdictions.
Courts in Cambodia:
At present, Cambodia has a unified court system; it does not, that is, have a separate
commercial tribunal or commercial law bench. However, a draft law establishing a Commercial
Tribunal is under preparation in the Ministry of Justice.
A commercial dispute, like any other civil matter, would be taken by a plaintiff to the court of
first instance in the jurisdiction (i.e., the province) plaintiff thought appropriate under the facts of the
case. Choice of jurisdiction would depend on such facts as where a contract was to be performed,
where a defendant had an office or other assets, a choice of law clause, where loss had occurred, etc.
Most commercial disputes are brought in the Municipal court of Phnom Penh simply because
most medium and large size businesses (and most lawyers) are based in the capital. A party can
appeal an adverse first instance le vel decision to the Appellate Court.
Courts in Foreign Jurisdictions:
A commercial dispute with a ne xus to Cambodia could be brought before a court of a foreign
jurisdiction with which there was sufficient nexus, to allow the case to lie.
Such nexus could arise, for example, in a tr ansaction that involved one or more foreign
countries in addition to Cambodia. Examples would be cases involving 1) a contract signed in aforeign country for sale of goods loaded in a third country for delivery in Cambodia, or 2) a defendant
whose physical presence (assets, head office, manufacturing facility) was in a foreign jurisdiction and
the law of that jurisdiction and of Cambodia recognized such a presence as a basis for bringing suit
there, or 3) a choice of venue clause in a contract selecting a foreign country as situs of suit.WT/ACC/KHM/2
Page 24
At the conclusion of any such foreign suit, if asse ts of the losing party sufficient to satisfy the
judgement were found outside Cambodia, the suit could be concluded with no recourse at all to a
Cambodian court.
Alternatively, if the judgement from the foreign suit could not be satisfied without recourse to
assets in Cambodia, a Cambodian court might be asked to enforce the foreign judgement.  Cambodia
at present has no  "enforcement of foreign judgement "law. Such a request would therefore have to be
based on general principles of international comity.
Arbitral:
In Cambodia:  The Chamber of Commerce Law of 1995, in Sub-Article 9(6), states
that the Chamber of Commerce "has the responsibility " to " play a role as arbiter in resolving
business disputes".
Outside Cambodia:  A dispute can be arbitrated outside Cambodia either a) in a case
arising in Cambodia but subject to a choice-of-venue contract clause which moves the
arbitration outside, or b) in a case arising outside Cambodia were the arbitral site selected is
also outside the Kingdom.
Cambodia is a signatory to and ratifier of the New York Convention on the Enforcement of
Foreign Arbitral Judgements (Cambodia acceded on 5 January 1960).
IV. POLICIES AFFECTING TRADE IN GOODS
1. Import Regulation:
(a) Registration requirements for engaging in importing
In accordance with the Law on Commercial Regulations and the Commercial Register,
enacted by the National Assembly on 3 May 1995, all commercial enterprises operating in Cambodia
are required to register. Commerce is defined by the Law as the activity of buying and selling
merchandise or services, engaged in regularly, for the dual purposes of exchange and profit.
The Law provides for the establishment of the Commercial Court which is assigned
responsibility for the registration and maintenance of the Commercial Register. In the interim period
until the Commercial Court is established, these functions are entrusted to the Ministry of Commerce.
In its Instruction Circular No. 360 dated 3 December 1997, the Ministry of Commerce defined
requirements and procedures associated with the registration of commercial enterprises, as well as
forms of such enterprises. The full texts of regula tions with regard to registration requirements are
reproduced in Annex 7.
The Law on Commercial Regulations and Commercial Register, as well as the Instruction
Circular, do not contain any special provisions for the registration of importers or exporters. However,
there are distinctions in the scope of commercial activities allowed for Khmer national companies and
foreign-owned companies.
For Khmer national companies,  registration a llows these companies to engage in importing
or exporting without limitations. A company is d eemed to be a Khmer national company if  (i) its
stated office is located in Cambodia; (ii) more than 51 per cent of its stated capital is held by a Khmer
citizen, and (iii) more than 51 per cent of its financial interests in the profits and losses are held by aKhmer citizen.WT/ACC/KHM/2
Page 25
Enterprises that are less than 51 per cent Cambodian owned are considered foreign enterprises
(foreign-owned enterprises). They have an additional  requirement to register with the Council for the
Development of Cambodia (CDC) in accordance w ith the Law on Investment dated 4 August 1994
and the Government Sub-Decree on the Implementati on of the Law on Investment dated 29 December
1997. Foreign-owned enterprises have two limitations on the scope of their activities. First, they are
registered as eligible to engage in import/export activities only as required by their
investment/production activities. Foreign-owned companies are not authorized to engage in
import/export trading activities—that is to import or export for the sole purpose of re-selling goods
without transformation. Foreign representative offices are not allowed to engage in commercial
activities. Second, these enterprises are not allowed to own, sell or buy land  or  engage in real estate
business outside their stated scope of activities.
Commercial enterprises are required to pay fees for their registration. Registration fees are
reproduced in Annex 7. Foreign-owned companies in vesting in Cambodia are also required to pay
fees for their registration with the CDC: (i) for investment projects less or equal to US$1 million -
US$100 at the time of application and US$500 upon inve stment approval; (ii) for investment projects
exceeding US$1 million - US$200 at the time of ap plication and US$1,000 upon investment approval.
At present, a draft Company Law is under consideration which, if adopted as expected, will
not alter the above registration requirements for commercial enterprises.
(b) Characteristics of the national import tariff (the most recent edition of which should be
supplied), customs tariff nomenclature (HS), types of duties, general description of the
customs tariff structure, weighted average level of duties on main customs tariff groupings;
application of m.f.n. tariff rates, tariff preferences
The legal framework for import (and export) tariffs is based on the Law on Import and Export
Duties dated 15 September 1989 with subsequent modifications and decisions of the Ministry of
Economy and Finance (the most recent Decision on the Implementation of Customs Tariffs No.002 is
dated 14 September 1997).
The tariff nomenclature is based on the Harmonized System (HS), and is articulated to at least
eight digits, with the seventh and eighth digits harmonized to ASEAN practice. HS96 changes have
been incorporated.  Both import and export tariffs consist of only ad valorem  duties. At present, only
MFN duty rates exist; there are no preferential tariff duties, although the latter could be expected after
Cambodia becomes a member of ASEAN.
As regards average import tariffs, the simple arithmetic average of all tariff lines is 18.6 per
cent. The trade-weighted average is 16.5 per cent, if imports of non-monetary gold and silver areincluded, and 19.5 per cent if they are excluded. The weights are average annual import values for
1995 and 1996.
There are currently twelve import tariff bands. The following table provides information on
the bands:WT/ACC/KHM/2
Page 26
Distribution of Tariff Bands
Tariff Band (per
cent ad valorem)Number of tariff
linesShare of tariff
linesAverage Annual
Imports*Share of  Imports
        0      114 1.9% 119   0.0%
       ** 0.3          9 0.1%         163,566 15.6%
        7    2,437 40.7%         306,570 29.3%
      10        16  0.3%             2,571   0.2%
      15    1,343 22.4%         239,551 23.0%
      20        61 1.0%         121,300 11.6%
      30    3 0.0%         1007 0.1%
      35      1,833 30.6%           138,748   13.3%
40 5 0.1% 16,210 1.6%
50 156 2.6% 42,590 4.1%
90 3 0.0% 4,746 0.4%
120 2 0.0% 7,820 0.8%
    Total   ***5,991 100% ***1,044,839  100%
Source: Ministry of Commerce, based on customs data.
* Thousands of dollars; annual average for 1995-96.
** Consists solely of non-monetary gold and silver
*** Including 9 tariff lines that could not be allocated among the bands.
(c) Tariff quotas, tariff exemptions
Cambodia does not apply tariff quotas.
Tariff exemptions include: (1) exemptions granted on imports by diplomatic missions; on
imports for humanitarian or religious purposes; etc. (2) exemptions granted as incentives in
accordance with the Law on Investment (see Section II 2(d)); (3) exemptions granted for commercial
samples; and (4) various ad hoc exemptions decided by the Prime Minister.
(d) Other duties and charges, specifying any charges for services rendered
There is a customs fee of 15,000 Riels per export/import declaration for services rendered.
(e) Quantitative import restrictions, including prohibitions, quotas and licensing systems
There are no quantitative restrictions on imports into Cambodia. Import prohibitions are in
force as regards narcotic drugs and poisons.
Import licensing requirements cover only a small number of products, as described below.
The intent of import licensing is not to restrict imports.
(f) Import licensing procedures (Annex 3 refers)
- Import licensing covers a small number of goods:
- Weapons, explosives and ammunition: permit from the Ministry of National
Defense;
- All vehicles and machinery for military purposes: permit from the Ministry of
National Defense;
- Gold, silver, precious stones and articles thereof: permit from the National
Bank of Cambodia;WT/ACC/KHM/2
Page 27
- Pharmaceuticals and medical material: permit from the Ministry of Health.
- Please see also Annex 3 below.
(g) Other border measures, e.g. any other schemes that have the border effects similar to  those of
the measures listed under (e) above;
There are no other border measures that have similar effects of the measures listed under (e)
above.
(h) Customs valuation (WTO Customs Valuation Agreement (Annex 4 refers), the Brussels
Definition of Value, or any other system) whether used only for purposes of levying ad
valorem  rates of duty or for other purposes
The Decision of the Ministry of Economy and Finance of 14 September 1993 abolished the
system of customs valuation based on an indicative price list. The Decision stipulates that customs
value will be based on CIF market values, and will be expressed in Riels. Insurance has to be
purchased in Cambodia if a consignment has no insurance policy from abroad.
All goods on which the customs duty is more than US$300 must have their customs value
approved by the Valuation Office at the Department of Customs and Excise Headquarters in Phnom
Penh. Seven major border checkpoints are empowered to approve customs values for goods with a
customs duty of US$300 or less. All other local Cu stoms offices are empowered to approve customs
values when those values are US$300 or less.
The contract between the Royal Government and the pre-shipment inspection firm requires
the inspection company to determine whether the invoice price (transaction value) corresponds to the
open market price of the goods. (See (j) below for a description of pre-shipment inspection).
For imports that are not subject to pre-shipment  inspection (i.e. valued at less than US$5,000),
invoice (transaction) values are compared with a price list maintained by the Valuation Office at the
Customs Department. This list is compiled from the findings of the pre-shipment inspection firm, and
from various catalogues and price lists obtained from abroad. When the invoice price and the list price
diverge, the higher of the two forms the basis for the customs valuation.
For more details on customs valuation, please see Annex 4 below.
(i) Other customs formalities
Procedures for entry prior to clearance are the following:
- Particulars required in the cargo manifest:
- Bill of Lading Number;
- Port of Loading and Unloading;
- Consignee and Consignor;
- Description and gross weight of goods; and
- Quantity, marks, numbers and type of packages.
- Goods for imports require an import declaration form.Customs Department charges a fee of 15,000 Riels per export/import declaration.WT/ACC/KHM/2
Page 28
(j) Pre-shipment inspection (PSI)
 The Government signed an agreement with a PSI firm in 1995, under which imports into
Cambodia are subject to PSI by that firm. CA MCONTROL, a body under the Ministry of Commerce,
is responsible for the inspection of exports.
Pursuant to the announcement No. 321, dated 8 September 1995 by the Ministry of Economy
and Finance and its Regulation on the implementation of the Pre-shipment Inspection Services,
imports must be submitted to PSI, except for goods whose declared total value is less than US$ 5,000.
The following goods are exempted from PSI:
- Precious stones and precious metals;
- Objects of art;
- Explosives and pyrotechnical products;
- Ammunition and weapons;
- Live animals;
- Current newspapers and periodicals;
- Household and personal effects including used vehicles;
- Parcel post or commercial samples;
- Gifts of foreign governments or international organizations to foundations, charities
and recognized humanitarian organizations;
- Gifts and supplies to an embassy, legation, consulate general or consulates and to the
United Nations Organization and its specialized agencies, imported for their own
needs;
- Cigarettes.
Pursuant to the announcement of the Ministry of Economy and Finance No 213 dated
2 July 1996 on Rearrangement of Rules and Regulations on Pre-Shipment Inspection any company or
person failing to submit imported goods for PSI (other than exempted goods above) is subjected to a
five per cent ad valorem  penalty, starting from 1 August 1996.
Pursuant to the announcement of the Ministry of Economy and Finance No. 474 dated
25 July 1997 on Rearrangement of Rules and Regulations on PSI, investment companies (ie. anycompany, Cambodian or foreign, whose investment has been approved by CDC--see II.2(d)) were
exempted from PSI until 31 December 1997. Export garment industry is exempted from PSI without
any time limitation.
The PSI firm's Liaison office in Phnom Penh issues a Registered Import Advice (RIA) to the
importers. The PSI firm gives copies of the RIA to the importer, customs and to the firm's offices in
the country of supply.
The PSI firm's office in the country of supply is to perform the following tasks:
- Pre-shipment inspection;
- Price verification;
- Verification of total value of the goods;
- Determination of the dutiable value of goods in accordance with the customs
regulations;
- Determination of the classification of goods in accordance with the tariff
nomenclature;
- Calculate duties and taxes payable.WT/ACC/KHM/2
Page 29
The seller is to provide the PSI firm's office in the country of supply with:
- Purchase order copy;
- Price list;
- Letter of credit;
- All other documents which the PSI firm in the country of supply may deem necessary
for the purpose of PSI.
After PSI in the country of supply, the PSI firm 's office in Phnom Penh will issue a Report of
Finding (ROF) which contains: nature of goods, quality, price, classification, duties and taxes payable
by the importer.
The Government established a special Appeals Committee to review any decision of PSI
company referred to it in writing by an importer.  This Committee comprises representatives from the
Ministry of Economy and Finance, Customs Depa rtment, Ministry of Commerce, Council for the
Development of Cambodia and the private sector . The decision of the Appeals Committee should be
made within a maximum period of one month of the importer’s application and is final and binding on
the PSI Company and the importer.
(k) Application of internal taxes on imports
Several categories of imported goods are subject to excise taxes. Those include:
Products Range of taxation (%)
Some types of cars 10-30
Car spare parts 10-30
Motorcycles 10
Buses and trucks 10-30
Soft drinks 10
Beer 10
Wine and spirits 10
Cigarettes and other tobacco products 10
Gasoline  and lubricating oil 10
All consumption and excise taxes levied on imports are also levied in the same amount on
like domestically produced goods.
(l) Rules of origin
Cambodia has not yet established regulations on the rules of origin.
(m) Anti-dumping regime
Cambodia has no anti-dumping regime.
(n) Countervailing duty regime
Cambodia has no countervailing duty regime.WT/ACC/KHM/2
Page 30
(o) Safeguard regime
Cambodia has no safeguard regime.
2. Export Regulation
(a) Registration requirements for engaging in exporting
Registration requirements are the same as described in 1(a) above.
(b) Customs tariff nomenclature, type of duties, duty rates, weighted averages of rates
The current export tariffs form part of the national customs tariff as described in 1(b) above.
The following items are subject to export duties:
Export Tariffs
HS Heading Description of Goods Export Tariff
(ad valorem)
44.08.10.00
44.09Sawn and shaped wood. Veneer sheets and sheets for
plywood; strips for flooring5%
01.02
01.03Pure bred breeding bovine animals and swine 10%
03.01, 03.02
03.03, 03.04
03.05Live fish, prepared fish and fish products 10%
03.06
03.07Live crustaceans and molluscs and products thereof 10%
40.01
40.04Natural rubber in primary forms or in plates , sheets or strips
and rubber waste10%
44.02, 44.03
44.04, 44.05
44.06, 44.07Unprocessed and semi-processed wood; wood charcoal 10%
12.11,13.01
13.02Cannibis, Cannibis resin, extracts and dyes, coca, opium* 50%
29.05.50Halogenated , sulphonated , nitrated or nitrated derivatives of
a cyclic alcohol*50%
29.26 Nitrile-function compounds* 50%
Source: Cambodia's Tariff Schedule
* These categories are included for the sake of formal completeness. The products in these groups require a licence
in order to be exported. The Royal Government has in fact never issued any such licenses.
(c) Quantitative export restriction, including prohibitions, quotas and licensing systems
There are no quantitative export restrictions with some exceptions pertaining to exports of
rice and timber. Prohibitions are imposed on exports of the following items:
- round logs and unprocessed timber, owing to environmental reason;
- antiques more than 100 years old; and
- narcotic drugs and poisons. Export licensing procedures cover a few products and are
described in (d) below.WT/ACC/KHM/2
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Exports of rice
A special inter-ministerial working group on exports of rice was set up by the Government
Decision No. 88 dated 23 December 1995. This working group comprises Ministers of Commerce,
Economy and Finance, Agriculture and Rural Development. The prime objective of the workinggroup is to monitor the situation regarding aggregate domestic production and consumption of rice as
a staple food for the population. Other objectives are: to prepare estimates of rice exports; to analyze
market access conditions for Cambodian rice exporters; and to design measures aimed at improving
quality of Cambodian rice. The working group prepares its report to the Government which may
include recommendations regarding quantity limits for rice exports. For example, for 1996-1997 this
limit amounted to 100,000-120,000 tons, while actual exports of rice during this period was not more
than 30,000 tons.
Export of rice is subject to non-automatic licensing: an exporter is granted a license by the
Ministry of Commerce to export not more than 3,000 tons of rice which is valid for two months.
    
Exports of wood products
Government Decision No.17 dated 29 April 1997 established a list of processed wood
products eligible for exports, as well as identified special requirements for such exports due to
environmental reasons. These requirements specif y that an exporter (i) has to obtain a special
concession from the Government to exploit forest resources; (ii) to obtain an export quota from theGovernment; and (iii) be granted a non-automatic export licence by the Ministry of Commerce subject
to the above conditions (i.e. concession and quota). Domestic consumption of timber is subject to
similar measures.
In addition, the above Government Decision identified exact border crossing points through
which wood can be legally exported.
(d) Export licensing procedures
The following goods are subject to export licensing requirements:- Rice - see above in (c);
- Wood - see above in (c);
- Weapons, explosives and ammunition: permit from the Ministry of National Defense;
- All vehicles and machinery for military purposes: permit from the Ministry of
National Defense;
- Pharmaceuticals and medical material: permit from the Ministry of Health.
(e) Other measures, e.g. minimum export prices, voluntary export restrictions, orderly  marketing
arrangements
Goods for exports require an export declaration form.
(f) Export financing, subsidy and promotion policies
Cambodia has not yet identified policies or measures relating to export financing or export
support.  In accordance with the sub-decree No. 54, dated 22 September 1997 of the RoyalGovernment on the Organization and Functioning of  the Ministry of Commerce, the Ministry of
Commerce issued Declaration No. 343, dated 28 No vember 1997 on the organization and functioning
of its Export Promotion Division. It is envisaged that the Division will undertake tasks such as helpingWT/ACC/KHM/2
Page 32
the private sector secure information on markets abroad and on potential export opportunities and
helping organize trade fairs.
(g) Export performance requirements
The only measures that could be seen as export performance requirements are identified in the
Law on Investment dated 4 August 1994 as part of  investment incentives. Article 14 of the Law
specifies that “100 per cent import duty exemption is granted on construction materials, means of
production, equipment, intermediate goods, raw materials and spare parts used by an export-oriented
project with a minimum of 80 per cent of the production set apart for exports.”
(h) Import duty drawback schemes
A duty drawback on imports is possible, but at present is not applied.
3. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidy policies
Since the May 1993 election, Cambodia has been transforming its economic system to a free
market system. Most state-owned enterprises have been privatized, subsidies have been abandoned,
imported products made accessible, and the local currency (Riel) has been made internally
convertible. The objective of the industrial policy of the Government is to develop an industrial basethat operates effectively and efficiently, adds higher value to national natural resources, sustains
economic development, creates jobs, and increases the standard of living of the citizens of Cambodia.
A major policy emphasis is to encourage the development of industry, thereby contributing to
political, economic and social stability of Cambodia. A key ingredient in this area is the development
of light industry. In this sector there are two key requisites that have been identified: (1) infrastructure
and energy and (2) human resources development.
The Ministry of Industry, Mines and Energy (MIME) is addressing the infrastructure and
energy issues through its policies in industrial sectors and is committed to using both public and
private sources of funding. Another focus is on developing agro-manufacturing and food processing
industries to support the agriculture sector. MIME also supports the goals of the Ministry ofEducation and other governmental bodies in developing vocational training centers to provide the
needed trained manpower for industries. MIME is also developing a Petroleum Training Institute and
is laying the groundwork for a training institute in the Mines and Geology sector.
Additional strategies which are conducive to the development of the industrial sectors  are
promoting the development of industrial zones. Further privatization of state-owned enterprises is also
considered as an instrument of industrial policy. Roughly two-thirds of the state-owned sector was
transferred into private hands in a relatively short period of time (see II.2.(a)).
At present, the Government of Cambodia doe s not apply any subsidy measures and has not
yet identified its policies in this area.
(b) Technical regulations and standards, including measures taken at the border with respect to
imports (Annex 5 refers)
At present, the system of technical regulations and standards in Cambodia can be considered
as being in its very initial stage of development. The Instruction Circular of the Ministry of Industry
dated 14 July 1989 took some initial steps towards establishing standards for products. However,WT/ACC/KHM/2
Page 33
during the transition to a market economy, activities on standards were slow due to the lack of skills
and understanding of the role of standards. The Ministry of Industry is currently the primary body in
the area of standards. Quality control functions, mostly involving imported food products, are
assigned to CAMCONTROL of the Ministry of Commerce.
Cambodia became a subscriber member of the International Organization for Standardization
(ISO) on 1 January 1995.
Cambodia urgently requires technical assistance from the international community,
particularly from the WTO members, in the area of technical regulations and standards.
Two draft laws are being prepared in this area. The draft Law on the Cambodian National
Standards Institute (NSI) will address such issues as the functions of the NSI, compulsory standards,
declaration of standards, certification marks, licenses, certificates of registration, publication of
standards, national quality system certification scheme, etc. The National Standards Institute will
serve as the inquiry point referred to in Articl e 10 of the WTO Agreement on Technical Barriers to
Trade. The NSI will be governed by a Council that will be comprised of representatives of concernedMinistries, in particular the Ministry of Industry, Mines and Energy, the Ministry of Commerce, the
Ministry of Agriculture, the Ministry of Health and the Ministry of Environment. Pending adoption of
this legislation the entity responsible for standa rds is the Standards Office, Technical Department,
Ministry of Industry, Mines and Energy.
The draft Law on Quality and Safety of Products and Services provides for the establishment
of quality control of exported and imported products.
In the meantime, Cambodia will be seeking fuller cooperation with regional (ASEAN)
standardization bodies and international organizations such as ISO.
(c) Sanitary and phytosanitary measures, including measure taken with respect to imports
Imported live animals, plants and foodstuffs of plant origin should meet the following
requirements:
For live animals, various vaccinations (depending on kind of animal and original location of
imports) are required. Ministry of Agriculture (Department of Production and Animal Husbandry) is
in charge of vaccination controls.
For plants and foodstuffs of plant origin, a phytosanitary certificate is required. In accordance
with Government Sub-Decree N o. 98 dated 8 October 1983 on Imported and Exported Plant Products,
the Plant Protection and Phytosanitary Inspection within the Ministry of Agriculture ensures
phytosanitary controls at the border and issues phytosanitary certificates upon request of importers or
exporters. The Inspection keeps the list of pests and  plant diseases subjected to plant quarantine in
Cambodia. Cambodia recognizes phytosanitary certificates of other countries.
(d) Trade-related investment measures
The only trade-related investment measures are contained in the Law on Investment dated 4
August 1994 and the Government Sub-Decree on the Im plementation of the Law on Investment dated
29 December 1997. These measures form investment incentives and appear to be consistent with theWTO Agreement on TRIMs (see Section II 2(d)).WT/ACC/KHM/2
Page 34
(e) State trading practices  (Annex 6 refers)
Cambodia has no state-trading enterprises as defined by Article XVII of GATT 1994 and the
WTO Understanding on the Interpretation of Article XVII. State-owned and private enterprises
compete on the same footing in conducting domestic and international trade.
(f) Free zones
(g) Free economic zones
The Government Sub-Decrees No. 73 dated 5 October 1995 and No. 02 dated 5 January 1996
provide for the establishment of the Stung Hav-Sihanouk Ville industrial zone, including an Export
Processing Zone. However, this project is still to be implemented and the preparation of relevantregulation are under way.
(h) Trade-related environmental policies
Trade-related environmental measures affecting exports of timber are described in 2(c) above.
There are no other such measures.
(i) Mixing regulations
Cambodia does not have any mixing regulations.
(j) Government-mandated counter-trade and barter
There is no government-mandated counter-trade or barter in Cambodia.
(k) Trade agreements leading to country-specific quotas allocation
An agreement has been reached with Canada restraining the export of certain Cambodian
textile products to that market. The United States has imposed quantitative restraints on imports of
gloves from Cambodia.   
(l) Government procurement practices, including general legal regime and procedures for
tendering, dealing with tenders and award of contracts
The new public procurement system in Cambodia, which became operational under the
authority of Government Sub-Decree No. 60 dated 30 July 1995, envisages five (5) methods of
procurement namely: international competitive bidding (ICB); domestic competitive bidding (DCB);international shopping (IS); domestic canvassing (DC); and direct purchase or direct contracting
(Dcon). ICB which is used for big value contracts and which would warrant and would attract
international competition, adheres to widely-accepted standard international tendering practices and
procedure. DCB is used where the value of the contract is not substantial enough to interest foreign
bidders, and there is sufficient local capability to supply the goods or services. The other threemethods (IS, DC or Dcon) are methods that do not  require open public competition, although there is
no prohibition on the participation of foreign suppliers who are interested in offering their goods or
services.
ICB and DCB, which involve inviting tenders through public advertisements, are open to all
interested bidders. There are formalities and procedures for submitting and accepting bids for
evaluation, and for selecting the awardee of the contracts. Bids are prepared and submitted in
accordance with the prescribed form of bids and conform to the tendering condition and  instruction.
After submission, the bids are evaluated for their compliance with the technical and commercialWT/ACC/KHM/2
Page 35
specification and conditions and only the so-called substantially responsive bids are compared against
each other to arrive at the lowest-evaluated bid. Prices are adjusted, if necessary, to correct
arithmetical computation or to take into account non-substantive deviations. The lowest priced
evaluated bid is normally awarded the contract.
The bidding procedures are substantially the sa me for international competitive bidding and
domestic competitive bidding, except for some variation in the bid advertisements.
There are instances where the prescribed tendering procedures may not be followed as in the
cases of emergency purchases, proprietary procurement, small value items, or where there is a special
regulation which authorizes special procurement methods, e.g. when buying military equipment or
supplies.
(m) Regulation of trade in transit
Cambodia has no regulation related to trade in transit, although there is a bilateral agreement
with Vietnam on the transit of goods, which entere d into force on 3 April 1994. Under the agreement,
its parties allow the transit of goods across each other’s territory, excluding prohibited imports and
exports such as narcotics, toxic chemicals, radioactive items, pornographic and other materials
contrary to public morals, rare, wild and precious animals and plants. Bilateral agreements on transit
trade were signed with the Socialist Republic  of Vietnam on 3 April 1994 and with Lao PDR on 12
May 1994.
4. Policies affecting foreign trade in agricultural products
(a) Imports - i.e. comprehensive description of the types of border protection maintained:
customs duties and/ or any other border measures
Agricultural products are not subject to import licensing requirements. There are no
quantitative restrictions or prohibitions imposed on agricultural products. The trade-weighted average
duty on imports of agricultural products (HS 01-19) is 17 per cent, using 1995-1996 import weights.
In those years, three products accounted for 51 per cent of Cambodia's total agricultural imports: milk
(tariff: 35 per cent); rice (tariff: 7 per cent); and sugar (tariff: 7 per cent).
Phytosanitary certificates are required as described in 3(c) above.
(b) Exports - i.e. description of, and the budgetary expenditure and any revenue foregone
involved in each of the export subsidy measure in place
There are no export subsidies for agricultural products.
(c) Export prohibitions and restrictions
There are no export prohibitions on agricultural products, except those used as narcotic drugs.
Only rice is subject to export licensing requirements as described in 2(c) above.
(d) Export credits, export credit guarantees or insurance programmes
There are as yet no export credits, export credit guarantees or insurance programmes for
agricultural products.WT/ACC/KHM/2
Page 36
(e) Internal policies - i.e. description of, and the budgetary expenditure and any revenue foregone
involved in each of the domestic support measures in place
The majority of the Cambodian people live in rural areas and depend on agriculture--and
especially on rice production--for their livelihood. Because of the central role of agriculture andespecially rice production in determining national welfare, the government pursues a strategy
designed--among other things--to improve food output and food security. That strategy includes the
following domestic support measures:
- The Rice Seed Bank has been established and is managed by the Ministry of
Agriculture. The Bank allocates rice seed among the selected provinces. Rice seed is
then distributed to farmers upon their request by local offices of the Ministry ofAgriculture. After the harvest, farmers return rice seed to the Bank without interest.
In 1997, the Rice Seed Bank disposed of 5,000 tons financed from the government
budget;
- The Ministry of Agriculture distributes diesel fuel used for supporting farmers only in
running water pumps in the irrigation systems. The diesel fuel is distributed free ofcharge by local offices of the Ministry of Agriculture to farmers upon their request. In
1997, this covered approximately 1,5 million litres of diesel fuel financed from the
government budget.
5. Policies affecting foreign trade in other sectors
(a) Textiles regime
There is no special textile regime in Cambodia. The weighted average tariff duty on imports
of garments (HS 6101-6217) is 34 per cent, using 1995-1996 trade weights. The weighted average
tariff duty on imports of yarn and fabrics (HS 50-60) is 14 per cent. However, almost all garmentmanufacturers in Cambodia are registered investment firms producing mainly for export, and are thus
exempt from paying duty on imported raw materials and intermediate goods. (see II 2(d))
(b) Policies affecting foreign trade in other major sectors
There are no special policies affecting foreign trade in other major sectors, except as indicated
in 2(c) above with regard to exports of timber.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
(a) Intellectual property policy
The Kingdom of Cambodia respects intellectual  property rights, and regards laws and other
measures to protect them as important aspects of the economic, social, scientific and technological
development strategy of the country, both short-term and long-term. Efficient and effective protection
of Intellectual Property Rights is vital for the development of the domestic economy, for promoting
foreign investment, for the transfer and dissemination of technology, and for increasing local jobs and
income as well as facilitating the integration of Cambodia's economy into the regional and globaleconomies.
In order to give effect to this policy, Intellectual Property Laws, including Marks Protection
Act, Patent and Designs Law and Copyright and Related Rights are being  drafted by the Ministries
concerned, with the help of  foreign legal experts and WIPO . However the draft Marks ProtectionWT/ACC/KHM/2
Page 37
Act, Patent and Designs Law and Copyright and Related Rights have not yet been submitted to the
Council of Ministers. In September, 1997, WIPO sent comments on the draft Patent and Designs Law
and the draft Marks Protection Act of the Kingdom of Cambodia. The comments deal mainly with the
compatibility of the draft Patent and designs Law and the Mark Protection Act of Cambodia with
obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPSAgreement).
The Ministry of Commerce is now revising the Mark Protection Act and will soon send it to
the Council of Ministers.
Pending the passage of new legislation, policy with regard to the protection of Intellectual
Property Rights is based on:
- Provisions Relating to the Judiciary and Criminal Law and Procedure Applicable in
Cambodia During the Transitional Period dated September 10, 1992, Article 47:
Counterfeit of Seals, Bank Notes, Public Documents, Stamps and Trademarks, and
Article 48: Violation of Copy right. The Provisions were issued during the United
Nations Transitional Authority for Cambodia (UNTAC) period, and remain valid;
- Declaration No 368 of the Ministry of Commerce regarding Procedures of the
Intellectual Property Department dated December 15, 1997.
(b) Responsible agencies for policy formulation and implementation
The National Assembly is the highest organ of State power exercising the competence in
making policy and regime on Intellectual Property Rights through its legislation. However, draft
Intellectual Property Rights laws have not yet been submitted to the National Assembly.
At present, the Department of Intellectual Property of the Ministry of Commerce is the
responsible agency for policy formulation and implementation in respect of Trademarks. The
responsibility for Patents and Industrial Designs is in the Ministry of Industry, Mines and Energy and
Copyrights are under the responsibility of the Ministry of Culture and Fine Arts and the Ministry of
Information (as regards audio-visual materials).
(c) Membership of international intellectual property conventions and regional or bilateral
agreements
- Cambodia became a member of the World Intellectual Property Organization
(WIPO) on July 25, 1995.
- In 1998 Cambodia became a member of the Paris Convention for the Protection of
Industrial Property Rights. In addition, Cambodia intends to become a member of:
- The Berne Convention for the Protection of Literary and Artistic Works
(Berne Convention)
- The Patent Cooperation Treaty (PCT)
- The International Convention for the Protection of New Varieties of Plants,
1978 or 1991 (UPOV Convention)
- Cambodia is participating in the ASEAN Framework Agreement on Intellectual
Property Cooperation, since it became a member of ASEAN in 30 April 1999.WT/ACC/KHM/2
Page 38
- The Trade Relations and Intellectual Property Rights Protection Agreement between
Cambodia and the United States of Amer ica was signed on 4 October 1996 which
came into effect on 25 October 1996. The purpose of the Agreement is two-fold:
- To develop mutually beneficial trade relations between the two countries; and
- To provide adequate and effective protection and enforcement of intellectual
property rights.
- A Memorandum of Understanding on Intellectual Property Cooperation was signed
with Thailand on 5 March 1997.
(d) Application of national and m.f.n. treatment to foreign nationals
Cambodia accords to all foreign nationals treatment no less favorable than that accorded to its
own nationals with regard to the protection of intell ectual property. Any advantage, favor, privilege or
immunity granted by Cambodia to the nationals of one country shall be accorded unconditionally to
the nationals of other countries. For instance, all trademark application procedures, fees and taxes,trademark examination criteria, rights arising from trademark registration, competence of court.. etc
have  been implemented identically as regards Cambodian  nationals and nationals of other countries.
All draft legislation provides for MFN and National treatment.
(e) Fees and Taxes
Trademark processing fees:- Issuing a new certificate of registration US$50.00
- Publication of mark, per class US$50.00
- Service fee, per class US$  5.00
These Trademark processing fees may be revised by a declaration of the Ministry of
Commerce.
Patent and copyright activities have not yet been begun, therefore fees and taxes related to
these two areas have yet to be fixed.
2. Substantive standards of protection, incl uding procedures for the acquisition and
maintenance of intellectual property rights
(a) Copyright and related rights, including the right of the performers, producers of phonograms
and broadcasting organizations.
In the absence of an adopted Copyright and Related Rights Law. Cambodia provides
protection of copyright and related rights through Article 48 of the Provisions Relating to the
Judiciary and Criminal Law and Procedures Applic able in Cambodia During the Transitional Period,
of 10 September 1992. As mentioned above, Cam bodia will apply for membership in the Berne
Convention in near future.
Objects of copyright protection
 Copyrights and related rights will be protected by the Ministry of Culture and Fine Arts,
except for audio-visual materials, which are protected by the Ministry of Information.WT/ACC/KHM/2
Page 39
The main provisions of the draft Law on Copyrights and Related Rights, which has not yet
been  sent to the Council of Ministers, are the following:
  Intellectual property rights arise as a consequence of the creation of works.
The following are particularly considered as works:
- books, brochures and other literary, artistic and scientific documents, as well as
official texts of legislative, judicial or administrative nature;
- Conferences, speeches, sermons, pleading and other works of similar nature;
- drama or musical drama works,
- choreographic works, circus acts and mime shows;
- musical compositions, with or without words;
- film works and other works in a series of animated inter-linked pictures, with or
without sound, called audiovisual works, still photographs extracted from the latter
audiovisual works;
- drawing, painting, architectural, sculptural, engraving and lithography works;
- graphic and typographic works;
- photographic works and those realised with the use of similar techniques to
photography;
- work of applied arts;
- illustrations, cards, plans, sketches and plastic works pertaining to geography,
topography, architecture and sciences;
- computer programs;
- Derived works, eg: translation, adaptation, audiovisual or else - the transformation or
the arrangement, conceived from one or several pre-existing works or expressions of
folklore, the title of an intellectual work.
Duration of the protection
The protection of the copyright covers the life of the author, the year of his/her death and
seventy years following his/her death.
Moral Rights
The author enjoys the right with respect to his name, his quality and his work. This right,
inalienable and indefeasible, is attached to the person. This right can be conveyed to the heirs of the
author, this conveyance can be conferred to third parties by virtue of testamentary dispositions. The
author has the sole right to decide if, when, how  and under what name his work will be disclosed.
The work is considered disclosed when it is rendered accessible for the first time by the
author or with his consent, to a great number of persons outside the circle of intimate persons, such as
families or friends.
Property Rights
The author has the right to decide if, when and in what manner his work will be exploited. He
has the right, in particular:
- to make, through all processes, copies of the work, notably in the printed document,
records or under all other forms;
- to translate, adapt, transform or to arrange the work;WT/ACC/KHM/2
Page 40
- to offer to the public, to dispose of or to put in circulation  copies of the work, to
import or to export them;
- to recite, to represent or to perform the work, directly or through any other processes,
as well as to make it seen or heard in a place other than that presented;
- to transmit the work, by all means, by wire or wireless;
- to rebroadcast the work by technical means the exploitation of which does not pertain
to the original broadcaster;
- to make it seen or heard broadcast or rebroadcast emissions.
The author of a computer program has in addition the sole right to sell the original or copies
of the program.
The producer of an audiovisual work has in addition the sole right to sell the original or the
copies of the work.
Rights of performers
The performer has the sole right, as to his performance:- to make it seen or heard in a place other than that where it is performed;
- to broadcast it, by all means, whether by wire or wireless;
- to rebroadcast it by technical means the exploitation of which does not fall under the
original broadcaster;
- to record it on all media, particularly on records;
- to reproduce the media.
Rights of record producers
The producer of records has the exclusive right:- to reproduce, directly or indirectly, the records that he has created;
- to bring in copies of his records in view of their distribution;
- to place in circulation copies of the records and particularly to sell them
commercially.
Rights of broadcasting Companies
The broadcasting company has the exclusive right, as to its broadcasting
- to broadcast it;
- to make it seen or heard;
- to record it on all media, particularly on records;
- to reproduce the media.
Duration of Rights
The duration of the rights stipulated above shall be fifty years, beginning from 1 January of
the calendar year following the first communication to the public of the performance, the creation of
the records or the first broadcasting.WT/ACC/KHM/2
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(b) Trademarks including Service marks
In the absence of an adopted Mark Protection Act, the protection of trademarks and service
marks in Cambodia is based on:
- Article 47: Counterfeit of Seals, Bank Notes, Public Documents, Stamps and
Trademarks of the Provisions Relating to Judiciary and Criminal Law and
- Procedure Applicable in Cambodia During the Transitional Period, dated September
10, 1992.
- Declaration No 368 of the Ministry of Commerce regarding Procedures of the
Intellectual Property Department dated December 15, 1997.
The basic provisions of the draft Marks Protection Act, which has not yet been submitted to
the Council of Ministers, are:
A mark shall consist of any visible sign capable of distinguishing the goods or services of an
individual or corporation from those of another individual or corporation. Marks may consist of signssuch as words, letters, numerals, designs, and th ree-dimensional form, alone or in combination or in
colours.
Trademarks shall be protected by filing an application for registration of mark at the
Intellectual Property Division, Ministry of Commerce and the granting of a protection certificate(Certificate for Registration of Trademark). Use of a trademark shall not be a condition for
entitlement to file an application for the registration of a trademark.
In case a mark for which registration is requested does not possess distinctive characteristics
it may be protected if such mark has been used widely and has a good reputation in Cambodia. Well-known marks shall be protected in accordance with the Paris Convention.
Priority rights shall only be conferred to the person who first validly files the mark or who
first validly claims the earliest priority to the ma rk. When a mark has been first validly filed in any
country member of Paris Union or the World Trade Organization, or when the registration of the mark
is effective in any of these countries, the same appl icant or his successor in title is entitled in the
Kingdom of Cambodia to a priority for his mark based on the date of the first filing where the filing inthe Kingdom of Cambodia is made within six months following the first filing.
Shall not be recognised as marks the signs specified as follows : the signs that do not possess
distinctive characteristics; the signs that describe goods in term of quality, property, utility etc., of the
goods; the signs that may mislead the public, the signs that represent state flags, armorial bearings oremblems of Cambodia or other countries; names or emblems of international organizations; the signs
that are contrary to the law, public order and morali ty; the signs that are identical or similar to marks
previously registered in Cambodia or protected by an international convention to which Cambodia is
party in respect of the same kind of goods.
The owner of a mark shall have the exclusive right to use, transfer, or licence the trademark to
other persons; the right to request a third party to stop infringement: in using identical or similar mark
to such extent as to confuse with a protected mark for the same kind of goods and services in
production, business, import/export, advertising activities, or request competent authority to handle
such infringements.
The owner of a mark shall have the obligation to  use such registered mark. Failing to use such
trademark for five consecutive years from filing date without plausible reason will result in
nullification of the protection certificate. The licen sing of the right to use trademark shall not beWT/ACC/KHM/2
Page 42
considered as realising owner's obligation of effective use, but the use of the trademark by the licence
holder shall be considered as act of use.
Duration for protection of a mark is 10 years to be counted from priority date and renewable
for periods of 10 years without limit (see also Section III Annex 8).
(c) Geographical indication including appellation of origin At present, there is no law or regulation regarding the protection of geographical indication
including appellation of origin. However, a draft law is being prepared, and will contain the following
elements:
Any interested person and any interested group of producers or consumers may institute
proceedings with the competent authorities to pr event, in respect of geographical indications:
- the use of any means in the designation or presentation of goods that indicates or
suggests that the goods in question originate in a geographical area other than the trueplace of origin in a manner which misleads the public as to the geographical origin of
the goods;
- any use which constitutes an act of unfair competition;
- use of a geographical indication identifying wines and spirit of wines and other spirits
not originating in the place indicated by the geographical indication in question, evenwhere the true origin of the goods is indicated or the geographical indication is used
in translation or accompanied by expressions such as "kind", "type", "style", imitation
or the like.
In proceedings, the competent authorities may,  in addition to issuing an injunction, award
damages and grant any other civil remedy or relief.
(d) Industrial designs
There is no protection of industrial designs in Cambodia at present.The draft Patent and Design Law, which has not yet been submitted to the Council of
Ministers, contains the following provisions:
An industrial design is an object for protection as part of industrial property rights in
Cambodia. Any composition of lines or colour or any three - dimensional form, or any material,
whether or not associated with lines or colours, is deemed to be an industrial design, provided thatsuch composition, form or material gives a special appearance to a product of industry or handicraft
and can serve as a pattern for a product of industry or handicraft, and appeals to and is judged by the
eye. The protection of an industrial design does not extend to anything in an industrial design which
serves solely to obtain a technical result and to the extent that it leaves no freedom as regards arbitrary
features of appearance.
An industrial design is registerable if it is new. An industrial design shall be new if it has not
been disclosed to the public, anywhere in the world, by publication in tangible form or by use or in
any other way, prior to the filing date or, where applicable, the priority date of the application for
registration. Industrial designs that are contrary to public order or morality shall not be registerable.
The exclusive rights arising from an industrial design shall be acquired by registration of such
industrial design with the Ministry of Industry,  Mines and Energy and the granting of a protection
certificate (Certificate for Registration of Industria l Design). Only the applicant who has first validlyWT/ACC/KHM/2
Page 43
filed an application of registration or who is the first validly to claim the earliest priority shall be
granted the right to industrial design and shall be  deemed, in the absence of any evidence to the
contrary, to be the creator.
Examination of applications for the registration of industrial designs shall be carried out in the
form of a public examination. A duly formulated application shall be published and made public for
the purpose of allowing opposition to the registration of an industrial design. In case of need the
examiner shall simultaneously search for industrial designs not substantially distinguishable from the
industrial design for which protection is requested. In absence of any opposition and if the result of
the search shows that the industrial design possess novelty and satisfies such criteria as to be a pattern
for a product of industry or handicraft, then a protection certificate shall be granted.
The owner of a protected industrial design shall have the right to prohibit any person from
making, offering for sale, putting on the market or using any product in respect of which the design is
registered. The owner of a protected industrial design shall also have the exclusive right to transfer or
licence the right to use such industrial design to other persons and to request a competent authority to
compel any person to stop any infringement, and shall also have the right to claim compensation forany damage caused by act of infringement.
 The protection of an industrial design shall be valid for a period of 5 years from the priority
date and may be renewed for two periods of 5 years each .
(e) Patents
Cambodia does not at present provide protection of patents. The relevant  provisions of the
draft  Patent and Industrial Designs Law, which has not yet been submitted to the Council of
Ministers, are:
Any invention may be patented which is new, involves an inventive step and is industrially
applicable.
Any product for use in any of the methods required to achieve novelty, inventive step and
industrial applicability may be considered as a patentable invention
Shall not be considered as a patentable invention :
- discoveries, scientific theories and mathematical methods;
- schemes, rules or methods for doing business, performing purely mental acts or
playing games, and computer program; or
- methods for treatment of the human or animal body by surgery or therapy, as well as
diagnostic methods practised on the human or animal body;
- inventions that are contrary to public order or morality  and essentially biological
methods for breeding plants or animals, other than microbiological methods and
products deriving from those methods.
The right to an invention shall be established on the basis of filing an application for
protection at the Ministry of Industry, Mines and Energy and on being granted a protection certificate
(Patent for Invention). The rights shall be grante d to the applicant who has first validly filed an
application for a patent or who is the first validly to claim the earliest priority.
Examinations of an application as to form and as to substance are mandatory. If an invention
for which protection is requested satisfies the criteria as stipulated then the protection certificate shall
be granted and shall be published in order for the public to have the opportunity to claim forWT/ACC/KHM/2
Page 44
annulment of the protection certificate. A patent shall not be granted before the expiry of 18 months
after the filing or priority date.
The owner of the invention (patent) has the exclusive right to use, transfer or licence to other
persons the right to use the invention, and the right to demand other persons to stop infringements.Acts of infringement consist of manufacturing products using the protected invention; using,
importing, advertising, distributing products manufactured using a protected invention; or applying
methods that are protected. The owner of a protected invention has the right to demand compensation
for any damage caused by an act of infringement.
Any person may, after three years following the grant of a patent, apply for a licence for the
exploitation of the patented invention where, at the time of the application, the owner of the patent, or
his representative, without legitimate cause:
- was not using the invention, or making effective and serious preparation for such use,
in the Kingdom of Cambodia;
- has not put the product for which the patent was granted on sale in a quantity
sufficient to supply the market in the Kingdom of Cambodia.
The Ministry of Industry, Mines and Energy may grant to any person or administrative body a
licence for the exploitation of the patented invention, when the objective is predominantly to supply
the market in the Kingdom of Cambodia.
The duration for protection of an invention is 20 years from the filing date of the application
for a patent.
(f) Plant variety protection
No protection is currently provided.
(g) Layout designs of integrated circuits
No protection is currently provided.
(h) Requirements on undisclosed information, including trade secrets and test data
No protection is currently provided.Draft legislation on the above topics (plant variety protection, layout designs of integrated
circuits and requirements on undisclosed information) will be drafted shortly, as part of Cambodia's
compliance with the Trade Relations and Intellectual Property Rights Protection Agreement signed
with the United States.
(i) Any other categories of intellectual property
Measures to control unfair competition: No law directed at unfair competition is currently
envisaged. However, aspects of the question of unfair competition are addressed in the draft Marks
Protection Act, which envisages that any act of competition contrary to honest commercial practices
shall be unlawful, including:
- All acts of such a nature as to create confusion by any means with the establishment,
the goods or the industrial or commercial activities, of a competitor;WT/ACC/KHM/2
Page 45
- False allegations in the course of trade of such a nature as to discredit the
establishment, the goods or industrial or commercial activities, of a competitor;
- Indications or allegations, the use of which in the course of trade is likely to mislead
the public as to the nature, the manufacturing process, the characteristics, the
suitability for their rules.
3. Measures to control abuse of intellectual property rights
At present, Cambodia has only:
- The provision Relating to the Judiciary and Criminal Law and Procedure Applicable
in Cambodia During the Transitional Period dated 10 September 1992;  
- The Declaration No 368 dated 15 December 1997 to apply measure to control abuse
of intellectual property rights in Cambodia.
Based on the draft Marks Protection Act, Patent and Industrial Design Law, and Copyright
and Related Rights law, violation of the regulations on application rights, rights of authors, protection
criteria, or of procedures establishing rights in relation to an object of Intellectual Property may resultin the annulment of the granted protection certificate.
Acts of non-performance of the obligations of the owner of protection certificates such as
failure to pay maintenance fees, or the failure to use the registered trademark or patent in the time
stipulated by laws, may result in annulment of protection   or the granting to another person oradministrative body a licence for its exploitation , predominantly to  supply the market in the
Kingdom of Cambodia.
4. Enforcement
At present, Cambodia has only:
- The provision Relating to the Judiciary and Criminal Law and Procedure Applicable
in Cambodia During the Transitional Period, dated 10 September 1992;  
- Declaration No 368 dated December 15,1997 to apply enforcement of intellectual
property rights in Cambodia.
In practice, complaints with regard to the use of Marks have been resolved through
administrative measures. There has been no active enforcement in the areas of patents and copyrights.
(a) Civil judicial procedures and remedies
Provisions  in relation to civil judicial procedures and remedies contained in the draft
intellectual property protection laws are:
Jurisdiction over disputes, or infringements of In tellectual Property rights belong to municipal
and provincial courts and higher courts. The said courts have the authority of jurisdiction in thefollowing cases:
- claims of abuse of Intellectual Property rights;
- disputes over royalty, remuneration;
- claims of application rights and the rights of authors;
- disputes in relation to a contract regarding the transfer of ownership rights, licensing
contracts on the right to use objects of Intellectual Property.WT/ACC/KHM/2
Page 46
The injured party shall have the right to reques t the court to compel the infringing party to
compensate him or her for any damages. The court sh all have authority to emit an order to stop the act
of infringement, recognize legitimate rights to objects of Industrial Property and request competent
authorities undertake procedures for the purpose of acquisition of rights, request infringing party tocompensate damage to the injured party.
(b) Provisional measures
Provisions  in relation to provisional measures contained in the draft intellectual property
protection laws provide for the following:
The competent authorities having the authority to impose administrative measures to resolve
an act of abuse and the court having jurisdiction over violations and disputes in relation to industrial
property rights shall have the power to deliver a decision on application of provisional measures with
a view to preventing infringement and injuries and guaranteeing proper handling of violations.
The provisional measures include:
- detention of material evidence, facilities of infringement;
- searching concealment of material evidence, facilities of infringement;
- compelling the infringing party to stop the infringement;
- confiscation of infringed goods;
- temporary seizure of goods for the purpose of ensuring proper compensation.
(c) Any administrative procedures and remedies
The draft intellectual property protection laws stipulate that administrative measures may be
applied in remedy of abuses as follows:
- warning;
- monetary fine up to  twenty million Riels (roughly equivalent to about USD6,000),
- seizure of material evidence, facilities of infringement;
- destruction of infringement articles,
- compensation for damage caused by acts of infringement.
The competent authorities to apply both provisional measures and administrative procedures
and remedies in relation to violations of intellectual property rights are:
- Market control section of the Ministry of Commerce, of the Ministry of Industry
Mines and Energy, and of the Ministry of Culture and Fine Arts;
- Customs offices;
- Economic police.
(d) Any special border measures
Cambodian laws do not currently provide for any special border measures related to
intellectual property infringement. The draft laws on intellectual property protection allow the
customs authorities to inform right holders that ther e are reasons to believe that goods infringing their
rights are about to be imported or exported. By application, the right holders may request the customs
authorities not to release any such goods where customs authorities have reasons to believe the goods
are about to be imported or exported. The applicant shall give to customs authorities any information
he may be aware of, including a detailed description of goods, to help these authorities takeWT/ACC/KHM/2
Page 47
appropriate action. In the absence of fraud, customs can make decisions and also detain the goods
during ten working days. The goods must be released where the applicant fails, within the ten working
days, to establish to customs that the interim measures have been requested or civil or penal
proceedings have been instituted respecting the infrin gement. Meantime, the applicant is liable for any
damages resulting from an unsubstantiated application.
(e) Criminal procedures Article 68 of draft Patent and Designs Act, article 49 of draft Marks Protection Act and
Article 37 of draft Copyright and Related Rights law stipulate that the act of infringement of
intellectual property rights is liable to be punished by imprisonment of from one to thirty-six months,
or by a fine of from one to twenty million Riel s (USD6,000), or both. In the event of recidivism, the
maximum penalties shall be doubled.
5. Laws, decrees, regulations and other legal acts relating to the above
The Provisions Relating to the Judiciary and Criminal Law and Procedure Applicable in
Cambodia During the Transitional Period, dated Se ptember 10,1992: Article 47: Counterfeit of Seals,
Bank Notes, Public Documents, Stamps and Trademarks, and Article 48: Violation of Copyright. The
Provisions were issued during the United Nati ons Transitional Author ity in Cambodia (UNTAC)
period.
The Declaration No 368 of the Ministry of Commerce regarding Procedures of the Intellectual
Property Department dated 15 December 1997.
The following draft laws are under preparation:- Patent and Industrial Design;
- Marks Protection;
- Copyright and Related Rights;
- Geographical Indications.
6. Statistical Data on Applications for and Grants of Intellectual Property Rights
Protection
Since patent and copyright activities have not yet begun, statistics exist only with regard to
trademarks.
Trademark Statistics
Year  Applications Filed Registrations Granted Carried Over
1991
1992
19931994
1995
1996
1997
1998142
2,273
1,4781,337
1,265
1,708
1,549
1,341105
2,260
1,4071,418
1,269
1,712
1,526
1,1280
37
50
121
40
36
32
245WT/ACC/KHM/2
Page 48
VI. TRADE - RELATED SERVICES REGIME
1. General
The private sector dominates the services industry in Cambodia. The legal framework for
services is not yet completed. Moreover, Cambodia does not have detailed statistics for sectors relatedto trade in services except with respect to electricity distribution, railway and public water supply.
Foreign entities have a significant share in most important services sectors. In particular, there is
vigorous foreign private sector activity in transportation, courier, and banking services. The annex to
this section provides a description of Cambodia's service sectors especially as regards financial
services, post and telecommunications. Table 1 provides a breakdown of major service sectors as a
percentage of GDP.
Table 1- Breakdown of major service sectors as a percentage of GDP
1992 1993 1994 1995 1996 1997 1998p
Construction services 5.3 7.2 8.0 8.5 9.2 8.4 7.6
Financial services 0.8 0.8 0.8 0.8 0.8 0.8 0.7
Trade-related services 12.8 11.5 12.7 12.7 12.8 12.8 12.7
Transport & telecom services 6.3 6.5 6.4 6.2 6.4 6.8 7.4
2. Policies affecting Trade in Services
(a) Government departments, agencies, professional associations or other bodies with authority
or a role relevant to the conduct of services activities.
The state role in the services sectors involves regulation, licensing, administration (in the case
of railways, electricity distribution and public water supply) and supervision in order to ensurecompliance with legislation.
For the time being, legislation governing trade in services is prepared and submitted by the
concerned ministries, reviewed by the Council of Ministers and approved by the National Assembly
for both general and particular legislation for each type of services (see III.1(a)).
In order to implement its functions and duties, the Government delegates authority to sectoral
line ministries. These line ministries are in charge of setting out policies, submitting bills to
government for issuing laws and other legal documents needed  for the  administration and proper
implementation of these policies. Government agen cies having such authority to conduct services
activities are shown in the annex to this section. At a local level, Government agents ( bureau, offices)
possess state management authority at their corresponding level within the scope authorized by line
ministries and local administrations.
The governors of provinces and provincial offices of certain ministries are also given
authorization to ensure that local services indus tries act in conformity with laws, sub-decrees,
circulars, decisions, Prakas and other legal instruments. Local authorities exist under names of offices
such as finance office, post and telecom office, etc. In order to assist the governors of provinces in
sectoral issues, local offices must follow guidance from line ministries and are responsible for
reporting their activities to the relevant line ministries.
The permissible scope of responsibilities of a representative office, agent, branch and
subsidiary of non Cambodian entities is desc ribed in the Law on Investment, the Sub-Decree onWT/ACC/KHM/2
Page 49
Implementation of the Law  on  Investment  and a ci rcular of the Ministry of Commerce(Please refer
to section II and  IV above).
(b) Judicial, arbitral or administrative tribunals or procedures providing for the review of, or
remedies in relation to, administrative decisions affecting trade in services
There are no distinct tribunals or procedures related to trade in services. See III.6.
(c) Provisions, including in international agreements, concerning qualification requirements and
procedures, technical standards and licensing and / or registration requirements for the supply
of services
No more than one body is allowed to issue a particular licence. However, for certain types of
services there is need for consultation with other concerned government agencies. In general, the
governmental body responsible for issuing a particular licence is also responsible for supervising that
activity.
The annex to this section depicts qualification requirements and procedures and refers to the
relevant legislation and government agencies issuing the licence. The annex also refers to agencies not
issuing licenses but concerned with the sector.  There are registration requirements at the Ministry of
Commerce for the supply of services (see IV.1.(a)).
Foreign companies and individuals supplying services under the Law on Investment submit
their application to the Council for the Development of Cambodia . The Standard registration is
required at the Ministry of Commerce and at the De partment of Tax of the Ministry of Economy and
Finance.
(d) Provisions governing the existence and operation of monopolies or exclusive  service
suppliers
The policy of the Royal Government of the Kingdom of Cambodia is to promote competition
in service sectors. Certain state monopolies in services like insurance are being de-monopolised.
Natural monopolies in particular railways, electricity distribution and public water supply
services are operated by the Government.
(e) Provisions relating to safeguard measures as they apply to trade in services
Cambodia does not have any safeguard measures for trade in services.
(f) Provisions relating to international transfers and payments for current transactions of services
(g) Provisions relating to capital transactions affecting the supply of services
The Royal Government permits investors to purchase foreign currencies through the banking
system and to remit abroad these currencies for the discharge of financial obligations incurred in
connection with their investment (payment for imports and repayment of interest, payment of
royalties and management fees and remittance of profits), as well as the proceeds from the sale of
assets. Relevant provisions are contained in the Law on Investment in Cambodia.
(h) Provisions governing the procurement of services by  governmental agencies.
 Provisions for government procurement of services are the same as those governing
procurement of goods (see IV.3.l).WT/ACC/KHM/2
Page 50
(i) Provisions concerning any forms of aid, grant, domestic subsidy, tax   incentive or promotions
scheme affecting trade in services.
In order to promote the production of energy and water, the government provides credit on
favorable terms to EDC (Electricite du Cambodge) and to water supply services. Tax incentives and
other promotion schemes are contained in the Law on Investment in Cambodia (see II.2.(d)).
3. Market access and national treatment.
(a) Limitations on the number of service suppliers
There are no limitations on the number of service suppliers in Cambodia. The only limitation
concerns the total of newspapers of Khmer language owned by foreigners which should not exceed 20
per cent of the total number of newspapers in Khmer language published in Cambodia.
(b) Limitations on the total value of service transactions or assets
There are no limitations on the total value of service transaction or assets, except in the
establishment of an import-export trading company, in which the foreign partners are not allowed to
hold more than 49 per cent of the total assets of the joint-venture.
 (c) Limitations on the total number of service operations or on the total quantity of service output
There are no limitations on the total number of service operations or on the total quantity of
service outputs.
(d) Limitations on the total number of natural persons that may be employed in a particular
service sector
No foreigner can work unless he possesses a work permit and employment card issued by the
Ministry in Charge of Labour. These foreigners must also meet the following conditions:
- Employers must beforehand have a legal work permit to work in Cambodia;
- These foreigners must have legally entered Cambodia;
- These foreigners must have a valid passport;
- These foreigners must possess a valid residency permit;
- These foreigners must be fit for their job and have no contagious diseases. These
conditions must be determined by the Prakas of the Ministry of Health with aagreement from the Ministry in Charge of Labour.
The work permit is valid for one year and may be extended as long as the validity of
extension does not exceed the fixed period in the residency permit of the person in question.
The Ministry in Charge of Labour can revoke a work permit in the following cases:
- When the holder does not fulfil one of the conditions laid in above points (a), (b), (c),
d) and (e);
- When the job to be extended by the holder in Cambodia is competing with Cambodia
job seekers in the country. This revocation is carried out upon the expiration of a
work permit that may be reissued or extended in favor of the foreigner;
- When the foreigner is unemployed for more than one month or is hired by another
employer.WT/ACC/KHM/2
Page 51
 
The Ministry in Charge of Labour will issue a Prakas on the issuance of work permits and
employment cards to foreign workers. A joint Prakas of the Ministry in Charge of Labour and the
Ministry of Economy and Finance will set the fee for issuing such work permits and employment
cards.
Enterprises of any kind and professionals such as lawyers, bailiffs and notaries who need to
recruit staff to work in their profession must recruit Cambodians as a first priority.
Notwithstanding the above provisions, the ma ximum percentage of foreigners who can be
allowed to be employed in each of the enterprises will be determined by a prakas of the Ministry in
charge of Labour based on each of the categories of personnel as follows:
- Office personnel
- Specialised personnel
- Non-specialised personnel
The maximum percentage of foreign natural person who can be allowed employment in
enterprises shall be determined by Decisions of the Minister in Charge of Labour. Each enterprise is
required to justify, during the entirety of its existence, the maximum percentage of workers of non-
Cambodian nationality. In exceptional cases, in order to allow the employment of specialists
indispensable to the operation of the enterprise, the percentage of foreigners can exceed the abovelimit with the authorization of the Minster in Charge of Labour at the suggestion of the Labour
Inspector.
(e) Restrictions on, or requirements of specific types of legal entities through which a service
may be supplied
Services may be supplied through existing legal entities: sole proprietorship, general
partnership, public institution, limited partnership, private company limited, single member private
company limited, public company limited, state enterprise and joint venture. However, when
foreigners have majority ownership, such entities  cannot own land or conduct import-export trading
operations.
(f) Limitations on the participation of foreign capital
There are no limitations on the participation of foreign capital in the services sectors except
for the participation in the establishment of import-export trading company.
(g) Measures providing for less favorable treatm ent than the treatment accorded to national
services or service suppliers
In general, there are no measures providing for less favorable treatment than the treatment
accorded to national services or service suppliers. However, exceptions exist in the areas of import-export trading company, ownership of newspapers, medical and architectural services. In general,
national treatment for legal services exists only where the home country of foreign lawyers provides
the same possibility for the Cambodian lawyer to practice. However, foreign lawyers may not
represent clients nor perform any activity to attract clients nor do commercial advertisement.WT/ACC/KHM/2
Page 52
4. Most-Favoured-Nation Treatment.
The Government of Cambodia makes no distinction among the services and service suppliers
from various countries and provides to all countries a services regime which is not less favorable than
that supplied to the services and service suppliers of any other foreign country. In the area of legal
services, however, access of foreign lawyers is limited where a given lawyer's home country does notpermit the possibility of practice by Cambodian lawyers (see Annex to this section).WT/ACC/KHM/2
Page 53
ANNEX 1
STATISTICS AND PUBLICATIONS
1. Foreign Trade statistics for goods and Services: Responsible Agencies
There are two key government agencies responsible for foreign trade statistics for goods and
services. These agencies are the Customs Departme nt of the Ministry of Economy and Finance and
the National Institute of Statistics of the Ministry of Planning.
2. Publications Related to Statistics
Publications related to statistics are brought out by the following agencies:
- Monthly Bulletin of Statistics: Ministry of Economy and Finance;
- Economic and Monetary Statistics Review (Monthly), National Bank of Cambodia;
- First Five Year Socioeconomic Development Plan 1996-2000.
3. Statistical Data
(a) Main Economic Indicators
(i) GNP
Table A1-1 GDP by Industrial Origin
INDICATORS 1992
actual1993
actual1994
actual1995
actual1996
actual1997
actual1998
estimate1999
Projected2000
Projected
1-GDP by industrial origin – constant 1993 purchases prices -
Bns R. %
change%
change%
change%
change%
change%
change%
change%
change
Agriculture
PaddyOther cropsRubber
Livestock
FisheriesForestry2386
873
556
41
624
1741184.1%
7.3%
-14.8%
-5.9%
4.1%
4.4%
72.0%0.5%
-11.9%
-11.9%
15.6%
-2.7%
4.4%
91.0%6.4%
18.8%
12.0%
8.1%
6.3%
2.5%
-24.4%2.4%
0.2%
6.2%5.0%
7.5%
-0.9%-6.6%0.8%
-3.7%
4.3%2.4%
5.0%
-2.0%
1.1%3.6%
4.4%
5.1%4.7%
5.0%
-1.6%-2.0%3.9%
4.5%
5.3%4.4%
5.0%
0.0%
-1.5%4.6%
6.0%
6.0%4.3%
5.0%
0.0%1.5%
Industry
Mining & Quarrying
Manufacturing
Electricity & waterConstruction678
69
284
29
29619.3%
20.4%
6.8%
19.6%31.1%15.0%
14.7%
15.0%
16.7%14.9%10.1%
7.8%
8.1%
13.8%11.8%18.2%
18.6%
12.9%
21.3%21.9%0.3%
-1.4%
7.7%
14.9%
-5.8%1.6%
-1.0%
8.1%
15.1%
-4.6%14.8%
13.0%
10.4%
15.2%19.2%14.0%
12.7%
10.6%
15.4%16.9%
Services
Transport & communication
Wholesale & Retail Trade
Hotels-Restaurants-TourismBanking-Insurance-Real Estate
Public Administration & Defense
Ownership of dwellingsOther1978
322
592
6437
162
3504517.3%
9.8%
5.3%
22.4%13.6%
232.1%
2.9%3.1%11.6%
8.2%
18.2%
46.4%26.6%
13.9%
2.8%4.2%8.0%
8.4%
10.3%
16.9%
7.6%
8.0%
4.1%5.1%7.3%
10.3%
9.2%
19.3%
6.4%
-1.8%
5.8%4.2%1.5%
5.3%
-0.1%
-2.5%
5.0%
0.4%
2.3%1.9%3.0%
7.2%
0.2%
0.7%3.1%
10.4%
2.05%
5.5%7.9%
7.8%
7.0%
23.6%
7.1%
9.8%
6.0%5.5%7.8%
7.8%
8.8%
21.1%
7.7%
3.6%
6.0%5.5%
Source: Ministry of Economic and Finance (July 1998).WT/ACC/KHM/2
Page 54
Table A1-2 Summary of budget operations
INDICATORS 1992
actual1993
actual1994
actual1995
actual1996
actual1997
actual1998
estimate1999
Projected2000
Projected
(millions of dollars)
Domestic revenue
Current revenue
Tax revenue
Non-tax revenue
Capital revenue
Total  expenditures
Current expenditures
Defense & SecurityCivil Administration
Capital expenditures
Current deficit/surplus
Overall fiscal deficit
Financing
Foreign financing
Domestic financing
o. w. bank financing156.0
156.0
109.7
46.3
0.0
245.6
238.5
118.6119.9
7.1
-82.5
-89.6
89.6
1.5
88.1
112.8290.1
290.1
219.1
71.0
0.0
608.4
373.2
219.4153.8
235.2
-83.1
-318.3
318.3
239.1
79.2
30.7590.4
589.2
364.6224.6
1.2
997.7
662.4
391.5270.9
335.3
-73.2
-407.3
407.3
432.1
-24.8
-26.6643.0
635.3
445.5189.8
7.7
1200.6
689.5
425.7263.8
511.1
-54.2
-557.6
557.6
564.3
-6.7
5.5749.2
709.9
534.3175.6
39.3
1441.4
812.8
406.6406.2
628.6
-102.9
-692.2
692.2
674.2
18.0
-17.0881.0
868.7
597.4271.3
12.3
1259.8
807.9
419.3388.6
451.9
60.8
-378.8
378.8
445.9
-67.1
-75.3908.8
875.8
667.6208.2
33.0
1443.7
970.5
552.2418.3
473.2
-94.7
-534.9
534.9
393.3
141.6
100.01310.0
1285.0
940.2344.8
25.0
1773.0
1145.3
504.0641.3
627.7
139.7
-463.0
463.0
476.0
-13.0
0.01679.7
1654.7
1164.9
489.8
25.0
2322.7
1337.6
589.1748.5
985.1
317.1
-643.0
643.0
643.0
0.0
0.0
Source: Ministry of Economic and Finance (July 1998)
(iv) Production and consumption of the basic goods
TableA1-3: Production of Basic Goods
Unit 1990 1991 1992 1993 1994 1995 1996
Industrial
Soap Tons 935 279 311 336
Soft drinks 1,000 cases 275 135 214 292 345
Milk 1,000 cans 270 297 17,530 9,562 611
Fabrics 1,000 meters 1,392 287 190 181 177
Mosquito nets 1,000 meters 1,665 1,103 120 1,260 1,260
Electricity 1,000 kWh 193,016 120,177 161,242 160,399 170,457
Water 1,000 m3 20,759 20,758 38,944 28,293 11,531
Agriculture
Crops
  Rice 1,000 Tons 2,500 2,400 2,221 2,117 2,223 2,745 3,300
  Corn 1,000 Tons 88 60 60 54 45 55 64
  Cassava 1,000 Tons 60 56 150 66 65 82 68
  Sweet potato 1,000 Tons 31 39 60 55 36 39 37
  Vegetables 1,000 Tons 170 249 210 200 197 193 141WT/ACC/KHM/2
Page 55
Unit 1990 1991 1992 1993 1994 1995 1996
   Mungbean 1,000 Tons 12 13 14 12 17 20 16
   Groundnut 1,000 Tons 4 4 4 4 5 6 7
   Soybean 1,000 Tons 22 35 40 39 23 17 28
   Sugar cane 1,000 Tons 258 145 142 140 219 202 178
Livestock
   Cows 1,000 Heads 2,181 2,257 2,468 2,542 2,621 2,777 na
   Buffalo 1,000 Heads 736 755 804 824 810 764 na
   Pigs 1,000 Heads 1,515 1,550 2,043 2,123 2,024 2,038 na
   Poultry 1,000 Heads 8,163 8,816 9,901 10,692 10,027 10,066 na
   Draught oxen 1,000 Heads 1,018 1,042 1,050 1,184 1,161 1,320 na
   Draught buffalo 1,000 Heads 478 502 482 520 473 444 na
Fish
   Fresh fish 1,000 Tons 111 118 103 94 65 40 na
   Dried fish 1,000 Tons 3 2 2 2 30 3 na
   Salted preserved fish 1,000 Tons 6 6 4 5 8 7 na
Source: The World Bank Report "Cambodia: Progress in Recovery and Reform"; June 2, 1997; P.58 and The World Bank
Report "Cambodia: From Recovery to Sustained Development" May 31, 1996; P. A-26.
(viii) Balance-of-payments
Table A1-4: Balance of Payments (Million US Dollar), 1990-1997
1992 1993 1994 1995 1996 1997
Trade Balance -178.890 -188.031 -254.625 -333.098 -428.041 -328.102
  Exports FOB 264.500 282.968 489.756 853.876 643.559 735.850
     Domestic Exports 51.300 101.568 262.029 268.192 295.198 416.991
     Re-exports 213.200 181.400 227.727 585.684 348.361 318.859
  Imports FOB -443.390 -470.999 -744.381 -
1,186.974-
1,071.600-
1,063.951
     Retained Import -230.190 -289.599 -516.654 -601.290 - 723.239 - 745.092
     Re-exports -213.200 -181.400 -227.800 -585.684 -348.361 -318.851
Service Balance -13.900 -56.513 -85.476 - 74.055 - 52.215 - 28.100
  Service receipts 49.700 63.800 54.304 113.826 162.754 160.174
  Service payments -63.600 -120.313 -139.780 -187.882 - 214.969 - 188.274
Income Balance -14.136 -16.100 -46.558 - 56.878 - 85.694 - 42.034
  Income receipts 0.000 0.544 2.266 9.794 12.737 16.024
  Income payments -14.136 -16.654 -48.525 - 66.672 - 98.431 -58.058
Private Transfers 9.000 9.000 20.000 20.000 20.000 20.000
Current Account Balance I -197.926 -251.654 -366.660 - 444.031 - 545.950 - 378.236
Official Transfers 177.966 270.621 283.108 335.003 436.704 233.407
Current Account Balance II -19.960 18.967 -83.552 - 109.028 - 109.246 - 144.829
  Capital Account 16.019 0.090 54.450 109.889 252.220 220.939
  Errors and Omissions -42.558 -3.535 65.035 12.810 - 70.937 - 42.940
Overall Balance -46.499 15.522 35.934 13.671 72.036 33.170
Source: Economic Outlook for Cambodia 1998-2003, Ministry of Economy and Finance, January 1998 and NBC.WT/ACC/KHM/2
Page 56
(ix) Foreign Exchange
Table A1-5: Foreign Exchange
1990 1991 1992 1993 1994 1995 1996 1997 1998*
Riel/US$ Parity(end of period) 613 550 2310 2414 2588 2539 2720 3460
Source: Economic Outlook for Cambodia 1998-2003, Ministry of Economy and Finance, January 1998 and NBC.
Table A1-6: Exchange Rate 1997-1998 (July)
Month Parallel Market Rate
MidpointOfficial Exchange Rate
Midpoint
1997
January 2746 2736
February 2752 2747
March 2745 2739
April 2760 2748
May 2769 2755
June 2772 2766
July 3055 2910
August 3073 3008
September 3343 3200
October 3498 3417
November 3483 3410
December 3523 3460
1998
January 3645 3595
February 3598 3560
March 3618 3585
April 3708 3660
May 4004 4020
June 4051 4000
July 3764 3780
Source: 1998 Economic & Monetary Statistics Review, National Bank of Cambodia, various issues.
(b) Foreign Trade Statistics
(i) Foreign trade (aggregation at the two-digit HS level)
Table A1-7: Foreign Trade (in value and percentage) in 1996
HS Chapter Domestic
Export
(thousands
US$)Import
(thousands
US$)% of total
export% of total
import
01 Live animals 97.74 215.37 0.03 0.02
02 Meat and edible meat offal 68.50 168.47 0.02 0.02
03 Fish and crustaceans, molluscs and
other aquatic invertebrates4,823.52 231.37 1.25 0.02WT/ACC/KHM/2
Page 57
HS Chapter Domestic
Export
(thousands
US$)Import
(thousands
US$)% of total
export% of total
import
04 Dairy produce; birds' eggs; natural
honey4.20 5,024.02 0.00 0.50
05 Products of animal origin, not
elsewhere specified or included1.47 1.15 0.00 0.00
06 Live trees and other plants 62.73 37.66 0.02 0.00
07 Edible vegetables and certain roots
and tubers34.41 540.19 0.01 0.05
08 Edible fruit and nuts 221.70 4,553.84 0.06 0.46
09 Coffee, tea, mate and spices 10.86 322.14 0.00 0.03
10 Cereals 3,781.97 10,587.91 0.98 1.06
11 Products of the milling industry 0.00 2,923.14 0.00 0.29
12 Oil seeds and oleaginous fruits 2,198.70 172.49 0.57 0.02
13 Lac; gums, resins and other
vegetable saps and extracts0.00 64.31 0.00 0.01
14 Vegetable plaiting materials 2,257.67 6.09 0.58 0.00
15 Animal or vegetable fast and oils 0.00 6,741.44 0.00 0.67
16 Preparations of meat, of fish or of
crustaceans, molluscs0.00 7,306.08 0.00 0.73
17 Sugars and sugar confectionery 0.00 15,468.37 0.00 1.55
18 Cocoa and cocoa preparations 0.00 91.76 0.00 0.01
19 Preparations of cereals, flour, starch
or milk; pastry cooks' products0.00 7,279.61 0.00 0.73
20 Preparations of vegetables, fruit,
nuts or other parts of plants72.41 1,348.68 0.02 0.13
21 Miscellaneous edible preparations 0.00 13,486.95 0.00 1.35
22 Beverages, spirits and vinegar 3,724.86 12,552.77 0.96 1.25
23 Residues and waste from the food
industries73.13 401.81 0.02 0.04
24 Tobacco and manufactured tobacco
substitutes6,898.59 34,179.28 1.78 3.42
25 Salt; sulphur; earth and stone 0.91 20,834.92 0.00 2.08
26 Ores, slag and ash 0.00 3.31 0.00 0.00
27 Mineral fuels, mineral oils and
products98.46 143,591.53 0.03 14.35
28 Inorganic chemicals 32.58 868.20 0.01 0.09
29 Organic chemicals 0.00 846.41 0.00 0.08
30 Pharmaceutical products 11.91 49,815.49 0.00 4.98
31 Fertilizers 0.00 4,510.62 0.00 0.45
32 Tanning or dyeing extracts 15.98 4,566.89 0.00 0.46
33 Essential oils and resinoids;
perfumery cosmetic or toiletpreparations248.95 4,383.31 0.06 0.44
34 Soap, organic surface-active agents 0.00 2,304.60 0.00 0.23
35 Albuminoidal substances 0.00 833.77 0.00 0.08
36 Explosives, pyrotechnic products 14.47 363.18 0.00 0.04
37 Photographic or cinematographic
goods89.50 1,665.67 0.02 0.17WT/ACC/KHM/2
Page 58
HS Chapter Domestic
Export
(thousands
US$)Import
(thousands
US$)% of total
export% of total
import
38 Miscellaneous chemical products 11.60 2,400.97 0.00 0.24
39 Plastics and articles thereof 17.51 12,751.30 0.00 1.27
40 Rubber and articles thereof 52,086.73 4,337.22 13.47 0.43
41 Raw hides and skins and leather 235.87 45.45 0.06 0.00
42 Articles of leather 0.00 267.40 0.00 0.03
43 Furskins and artificial fur 0.00 10.98 0.00 0.00
44 Wood and articles of wood 83,921.09 390.96 21.71 0.04
45 Cork and articles of cork 0.00 3.17 0.00 0.00
46 Manufactures of straw 669.37 178.35 0.17 0.02
47 Pulp of wood or of other fibrous
cellulosic material0.00 16.86 0.00 0.00
48 Paper and paperboard 1,009.10 23,376.39 0.26 2.34
49 Printed books, newspapers, pictures
and other products of the printing
industry307.88 5,369.34 0.08 0.54
50 Silk 0.00 25.91 0.00 0.00
51 Wool, fine and coarse animal hair 165.16 439.25 0.04 0.04
52 Cotton 120.06 6,526.71 0.03 0.65
53 Other vegetable textile fibre 8.34 65.62 0.00 0.01
54 Man-made filaments 54.93 8,264.31 0.01 0.83
55 Man-made staple fibres 2,390.69 28,473.98 0.62 2.85
56 Wadding, felt and non-wovens 48.54 925.01 0.01 0.09
57 Carpets and other textile floor-
coverings1.77 231.57 0.00 0.02
58 Special woven fabrics 4.58 966.18 0.00 0.10
59 Impregnated, coated, covered or
laminate textile fabrics18.16 794.45 0.00 0.08
60 Knitted or crocheted fabrics 625.83 15,863.34 0.16 1.59
61 Articles of apparel and clothing
accessories, knitted or crocheted92,496.05 4,187.74 23.93 0.42
62 Articles of apparel and clothing
accessories, not knitted or crocheted32,864.61 3,186.02 8.50 0.32
63 Other made up textile articles 5,240.65 25,291.06 1.36 2.53
64 Footwear, gaiters and the like 569.56 2,777.01 0.15 0.28
65 Headgear and parts thereof 471.37 191.75 0.12 0.02
66 Umbrellas and parts thereof 0.00 303.60 0.00 0.03
67 Prepared feathers and down 0.00 6.72 0.00 0.00
68 Articles of stone, plaster, cement 0.55 2,551.30 0.00 0.25
69 Ceramic products 179.70 12,551.70 0.05 1.25
70 Glass and glassware 0.00 3,403.04 0.00 0.34
71 Natural or cultured pearls, precious
stones, precious metals35,721.84 41,763.29 9.24 4.17
72 Iron and steel 515.88 29,405.83 0.13 2.94
73 Articles of iron or steel 295.95 21,694.51 0.08 2.17
74 Copper and articles thereof 0.00 238.78 0.00 0.02
75 Nickel and articles thereof 0.00 49.16 0.00 0.00WT/ACC/KHM/2
Page 59
HS Chapter Domestic
Export
(thousands
US$)Import
(thousands
US$)% of total
export% of total
import
76 Aluminum and articles thereof 0.00 4,569.98 0.00 0.46
78 Lead and articles thereof 0.00 797.03 0.00 0.08
79 Zinc and articles thereof 0.00 3,017.30 0.00 0.30
80 Tin and articles thereof 0.00 20.63 0.00 0.00
81 Other base metals 0.00 2.61 0.00 0.00
82 Tools, implements, cutlery, spoons,
forks of base metal71.47 2,255.32 0.02 0.23
83 Miscellaneous articles of base metal 8.47 1,628.21 0.00 0.16
84 Nuclear reactors, boilers, machinery
and mechanical appliances3,522.38 110,417.58 0.91 11.04
85 Electrical machinery and equipment 2,695.00 79,041.22 0.70 7.90
86 Railway or tramway locomotives,
rolling-stock and parts thereof1.38 372.65 0.00 0.04
87 Vehicles and parts 1,309.37 141,650.59 0.34 14.16
88 Aircraft, spacecraft, and parts
thereof2,628.52 4,853.33 0.68 0.49
89 Ships, boats and floating structures 0.00 5,322.10 0.00 0.53
90 Optical, photographic instruments,
etc.730.82 11,039.52 0.19 1.10
91 Clocks and watches and parts
thereof18.62 1,115.11 0.00 0.11
92 Musical instruments 138.65 256.26 0.04 0.03
93 Arms and ammunition 0.00 132.47 0.00 0.01
94 Furniture; bedding and the like 399.38 12,744.18 0.10 1.27
95 Toys, games and sports requisites 237.52 1,027.51 0.06 0.10
96 Miscellaneous manufactured
articles40.27 2,644.15 0.01 0.26
97 Work of art, collectors' pieces and
antiques39,263.40 75.43 10.31 0.01
Total 386,564.18 1,000,602.12 100.00 100.00
(ii) Export Statistics
Table A1-8: Total Exports of Cambodia ( balance of payments basis)
(millions of US $)
1993 1994 1995 1996 1997
Total Exports 283.0 489.7 583.9 643.5 735.8
Domestic Exports 101.6 262.0 268.2 295.2 416.9
Re-exports 181.4 227.7 585.7 348.4 318.8
Source: Economic Outlook for Cambodia 1998-2003, Ministry of Economy and Finance, January 1998.WT/ACC/KHM/2
Page 60
Table A1-9: Destination of domestic exports (Thousands US dollar)
Country 95 Exports Share % 96 Exports Share % Exports 97 Share %
Thailand   173,475.30 46.32   116,831.80 30.52 129,177.11 26.18
USA 4,378.50 1.17 2,065.50 0.54  84,106.28 17.04
Singapore   107,265.10 28.64   109,166.70 28.52 72,587.21 14.71
China       3,547.50 0.95       5,533.90 1.45 44,772.49 9.07
Vietnam     13,674.00 3.65     24,425.10 6.38 34,500.52 6.99
United Kingdom       9,429.30 2.52     30,568.30 7.99 30,689.87 6.22
Taiwan       7,853.60 2.10       7,600.80 1.99 18,808.74 3.81
Germany       3,433.00 0.92     12,926.40 3.38 17,616.46 3.57
Hong Kong     21,196.50 5.66     11,508.00 3.01 12,510.82 2.54
Malaysia       2,162.60 0.58       3,126.80 0.82 10,730.09 2.17
France       8,913.00 2.38     39,613.30 10.35 9,551.24 1.94
Japan       5,287.80 1.41       5,036.80 1.32 6,176.87 1.25
Belgium       1,155.20 0.31       2,198.70 0.57 2,863.42 0.58
Netherlands         873.50 0.23       2,287.50 0.60 2,114.73 0.43
Denmark         741.60 0.20       1,754.50 0.46 979.85 0.20
Sub-Total 363,386.50 97.03   374,644.10 97.88 477,185.70 96.70
Total 374,512.90 100%   386,564.18 100% 493,446.76 100%
Table A1-10: Composition of Domestic Exports to Thailand
Sector 95 Exports Share 96 Exports Share
Food And Live Animals 454.1 0.3% 269.0 0.2%
Beverages And Tobacco 0.0 0.0% 437.5 0.4%
Crude Materials, Excl Fuels 32,038.0 18.5% 13,963.3 12.0%
Mineral Fuels Etc 0.4 0.0% 0.0 0.0%
Animal, Vegetable Oil, Fat 0.0 0.0% 5.2 0.0%
Chemicals, Related Prod Nes 106.1 0.1% 0.0 0.0%
Basic Manufactures 352.9 0.2% 715.0 0.6%
Machines, Transport Equip 117.5 0.1% 229.7 0.2%
Misc. Manufactured Goods 140,406.3 80.9% 80,918.10 69.3%
Goods Not Classed By Kind 0.0 0.0% 20,294.00 17.4%
Total 173,475.3 100% 116,831.8 100%
(iii) Import Statistics
Table A1-11: Imports of Cambodia (balance of payments basis)
(Millions of US $)
Year 1993 1994 1995 1996 1997
Total Import 471.0 744.3 1,187.0 1,071.6 1,063.9
Retained
Imports289.6 516.6 601.3 723.2 745.1
Re-Exports 181.4 227.8 540.0 361.0 250.0
Source: Economic Outlook for Cambodia 1998-2003, Ministry of Economy and Finance, January 1998.WT/ACC/KHM/2
Page 61
Table A1-12: Imports by HS Chapters: 1997
HS Chapter U.S dollars Share %
01 Live animals 1,602,380.79          0.15
02 Meat and edible meat offal 120,649.83          0.01
03 Fish and crustaceans, molluscs and other aquatic
invertebrates59,078.07          0.01
04 Dairy produce; birds' eggs; natural honey 2,870,090.07          0.26
05 Products of animal origin, not elsewhere
specified or included39,503.23          0.00
06 Live trees and other plants 20,616.95          0.00
07 Edible vegetables and certain roots and tubers 273,791.81         0.03
08 Edible fruit and nuts 4,585,667.41          0.42
09 Coffee, tea, mate and spices 109,871.17          0.01
10 Cereals 7,058,344.94          0.64
11 Products of the milling industry 1,876,927.55          0.17
12 Oil seeds and oleaginous fruits 67,304.88          0.01
13 Lac; gums, resins and other vegetable saps and
extracts111,262.35          0.01
14 Vegetable plaiting materials 151,073.98          0.01
15 Animal or vegetable fast and oils 4,553,687.13          0.42
16 Preparations of meat, of fish or of crustaceans,
molluscs3,669,644.84          0.34
17 Sugars and sugar confectionery 17,712,589.24          1.62
18 Cocoa and cocoa preparations 157,189.91          0.01
19 Preparations of cereals, flour, starch or milk;
pastry cooks' products6,831,258.67          0.62
20 Preparations of vegetables, fruit, nuts or other
parts of plants693,700.64          0.06
21 Miscellaneous edible preparations 11,860,202.38          1.08
22 Beverages, spirits and vinegar 11,100,674.82         1.01
23 Residues and waste from the food industries 1,631,099.22         0.15
24 Tobacco and manufactured tobacco substitutes 33,796,330.81          3.09
25 Salt; sulphur; earth's and stone 23,551,061.92          2.15
26 Ores, slag and ash 805.29          0.00
27 Mineral fuels, mineral oils and products 203,907,160.56        18.63
28 Inorganic chemicals 1,068,779.06         0.10
29 Organic chemicals 467,307.89          0.04
30 Pharmaceutical products 37,173,902.06          3.40
31 Fertilizers 5,135,692.58          0.47
32 Tanning or dyeing extracts 2,144,552.24          0.20
33 Essential oils and resinoids; perfumery cosmetic
or toilet preparations2,563,590.74          0.23
34 Soap, organic surface-active agents 2,724,906.62          0.25
35 Albuminoidal substances 765,549.01          0.07
36 Explosives, pyrotechnic products 614,469.58          0.06
37 Photographic or cinematographic goods 1,506,294.80          0.14
38 Miscellaneous chemical products 2,391,651.37          0.22
39 Plastics and articles thereof 17,913,722.46          1.64
40 Rubber and articles thereof 5,519,247.99          0.50
41 Raw hides and skins and leather 798,787.60          0.07WT/ACC/KHM/2
Page 62
HS Chapter U.S dollars Share %
42 Articles of leather 316,406.82          0.03
43 Furskins and artificial fur 11,377.87          0.00
44 Wood and articles of wood 560,717.87         0.05
45 Cork and articles of cork 18,835.43         0.00
46 Manufactures of straw 170,524.84          0.02
47 Pulp of wood or of other fibrous cellulosic
material3,899.06         0.00
48 Paper and paperboard 17,270,633.74         1.58
49 Printed books, newspapers, pictures and other
products of the printing industry1,926,276.34          0.18
50 Silk 9,416.88         0.00
51 Wool, fine and coarse animal hair 368,805.65         0.03
52 Cotton 20,024,205.04          1.83
53 Other vegetable textile fibre 42,925.16          0.00
54 Man-made filaments 7,849,484.04          0.72
55 Man-made staple fibres 32,766,511.45         2.99
56 Wadding, felt and non-wovens 2,770,145.49          0.25
57 Carpets and other textile floor-coverings 649,499.93          0.06
58 Special woven fabrics 4,978,148.53          0.45
59 Impregnated, coated, covered or laminate textile
fabrics2,360,780.57          0.22
60 Knitted or crocheted fabrics 43,027,893.71         3.93
61 Articles of apparel and clothing accessories,
knitted or crocheted6,691,127.99          0.61
62 Articles of apparel and clothing accessories, not
knitted or crocheted5,877,311.61          0.54
63 Other made up textile articles 21,475,906.11          1.96
64 Footwear, gaiters and the like 3,878,775.23          0.35
65 Headgear and parts thereof 224,825.30          0.02
66 Umbrellas and parts thereof 397,906.60         0.04
67 Prepared feathers and down 21,415.75          0.00
68 Articles of stone, plaster, cement 2,522,402.81         0.23
69 Ceramic products 12,258,668.82          1.12
70 Glass and glassware 4,016,654.26          0.37
71 Natural or cultured pearls, precious stones,
precious metals131,818,296.81       12.04
72 Iron and steel 30,678,337.02          2.80
73 Articles of iron or steel 15,799,794.85          1.44
74 Copper and articles thereof 260,283.90          0.02
75 Nickel and articles thereof 3677.74          0.00
76 Aluminum and articles thereof 5,688,822.25          0.52
78 Lead and articles thereof 1,107,474.88          0.10
79 Zinc and articles thereof 4,577,213.24          0.42
80 Tin and articles thereof 39,889.74          0.00
81 Other base metals 196,302.13          0.02
82 Tools, implements, cutlery, spoons, forks of base
metal207,101.84         0.02
83 Miscellaneous articles of base metal 2,918,203.99         0.27
84 Nuclear reactors, boilers, machinery and
mechanical appliances110,108,399.00        10.06
85 Electrical machinery and equipment 63,907,835.49          5.84WT/ACC/KHM/2
Page 63
HS Chapter U.S dollars Share %
86 Railway or tramway locomotives, rolling-stock
and parts thereof14,371.04          0.00
87 Vehicles and parts 72,276,661.10          6.60
88 Aircraft, spacecraft, and parts thereof 1,573,285.61          0.14
89 Ships, boats and floating structures 4,023,110.63          0.37
90 Optical, photographic instruments, etc. 10,159,701.84          0.93
91 Clocks and watches and parts thereof 709,296.50          0.06
92 Musical instruments 94,479.45         0.01
93 Arms and ammunition 17,005.54          0.00
94 Furniture; bedding and the like 16,685,976.38         1.52
95 Toys, games and sports requisites 1,685,255.44          0.15
96 Miscellaneous manufactured articles 5,961,155.07         0.54
97 Work of art, collectors' pieces and antiques 173,149.88          0.02
98 5,601.75          0.00
Total  1,094,544,370.00     100.00
Table A1-13: Main import partners (Thousands US dollars)
Country 1995 Imports Share % 1996 Imports Share % 1997 Imports Share %
Thailand 133,728.10 12.43 137,008.60 13.69 194,569.03        17.78
Singapore 529,727.10 49.26 457,688.70 45.74 112,828.03        10.31
Vietnam 109,085.80 10.14 119,629.80 11.96 105,884.82          9.67
Japan 64,111.70 5.96 32,619.20 3.26 82,200.22          7.51
Taiwan 9,186.00 0.85 42,924.80 4.29 77,511.58          7.08
China 28,400.70 2.64 28,408.50 2.84 65,843.97          6.02
Malaysia 15,461.90 1.44 19,713.50 1.97 58,662.14          5.36
Hong Kong 58,179.00 5.41 23,832.60 2.38 55,584.55          5.08
France 34,444.30 3.20 18,834.60 1.88 40,684.23          3.72
USA 17,406.10 1.62 15,494.80 1.55 26,337.40          2.41
Indonesia 9,091.00 0.85 9,313.30 0.93 14,457.01          1.32
Australia 13,598.10 1.26 5,310.00 0.53 10,980.49          1.00
Italy 404.50 0.04 14,839.60 1.48  2,046.03          0.19
Sub- Total 1,022,824.30 95.11 925,618.00 92.51 847,589.50        77.44
Total All 1,075,425.90 100% 1,000,602.10 100% 1,094,544.37 100%
(iv) Imports from main suppliers, preferably at a tariff line level
Table A1-14: Principal Import products from Japan
HS Commodity Dollars
(thousands)
1006 Rice            1,622
5502 Man-made fibers            1,232
6309 Used clothes            1,087
7209 Iron products            3,307
7308 Structures of iron and steel            3,133
7801 Lead            1,092
7901 Zinc            1,304
8426 Cranes, derricks            1,231
8465 Machine tools            3,754WT/ACC/KHM/2
Page 64
HS Commodity Dollars
(thousands)
8527 Radio receivers            3,410
8528 Television receivers            1,936
8529 Radio and television parts            1,804
8701 Tractors            2,458
8703 Motor cars            5,295
8704 Motor vehicles for transporting goods            7,333
8711 Motorcycles            3,661
9018 Medical instruments            1,333
9406 Prefabricated buildings            1,849
Total of above          46,841
Total of imports from Japan          82,200
Table A1-15: Principal Import Products from Vietnam
HS Commodity Dollars
(thousands)
23 Residues and Waste from Food Industry            1,547
27 Petroleum products          97,014
Total of above          98,561
Total of imports from Vietnam        105,885
Table A1-16: Principal Import Products from Thailand
HS Commodity Dollars
(thousands)
401 Milk            1,340
1006 Rice            1,976
1701 Sugar          15,430
1901 Food preparations of flour            1,005
1902 Pasta            2,494
1905 Bread and pastry            1,511
2103 Sauces and preparations therefor            2,351
2523 Cement          20,125
27 Petroleum products          84,019
3004 Medicaments            6,155
3105 Fertilizer            4,305
3306 Preparations for oral hygiene            1,035
3402 Washing preparations            1,023
39 Plastic products, mainly pipe            3,111
6403 Footwear            1,208
6908 Ceramic tile            1,924
7216 Iron products            1,649
8525 Radio and television transmitters receivers            1,925
8711 Motorbikes            2,503
Total of above        155,089
Total of imports from Thailand        194,569WT/ACC/KHM/2
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Table A1-17: Principal Import Products from Singapore
HS Commodity Dollars
(thousands)
1511 Vegetable oil            2,471
2103 Sauces and preparations therefor            2,077
2202 Mineral water            1,288
2203 beer            1,281
2402 Cigarettes            2,504
27 Petroleum products          15,535
3917 Plastic pipe            1,169
6309 Used clothing            1,766
6908 Ceramic tiles            1,583
7210 Iron products            1,806
7612 Aluminum cans            1,551
8419 Machinery for heating            2,981
8422 Packing and wrapping machinery            1,333
8429 Bulldozers and scrapers            7,209
8452 Sewing machines            1,553
8458 Lathes            1,557
8465 Machine tools            1,106
8473 Machine parts            1,189
8517 Telephones            4,025
8701 Tractors 1,232
8901 Boats and barges 1,145
96 Miscellaneous manufactured articles 1,027
Total of above          57,388
Total of imports from Singapore        112,828
(v) Trade by geographic areas (main trade partners)
Table A1-18: Sources of Imports-By Major Trading Bloc (Thousands US dollars)
Imports, 1995 Share % Imports, 1996 Share % Imports, 1997 Share %
ASEAN
Thailand 133,728.10 12.43 137,008.60 13.69 194,569.03 17.78
Singapore 529,727.10 49.26 457,688.70 45.74 112,828.03 10.31
Vietnam 109,085.80 10.14 119,629.80 11.96 105,884.82 9.67
Malaysia 15,461.90 1.44 19, 713.50 1.97 58,662.14 5.36
Indonesia 9,091.00 0.85 9,313.30 0.93 14,457.01 1.32
Philippines 1,704.60 0.16 315.8 0.03 1,035.61 0.09
Myanmar 0 0.00 12.2 0.00 151.42 0.01
Lao PDR 0.6 0.00 46.5 0.00 50.87 0.00
Total 798,799.10 7.28 743,728.40 74.33 487,638.93 44.55
Other "APEC"
Japan 64,111.70 5.96 32,61 9.20 3.26 82,200.22 7.51
Taiwan 9,186.00 0.85 42,924.80 4.29 77,511.58 7.08
China 28,400.70 2.64 28,408.50 2.84 65,843.97 6.02
Hong Kong 58,179.00 5.41 23,832.60 2.38 55,584.55 5.08
USA 17,406.10 1.62 15,494.80 1.55 26,337.40 2.41WT/ACC/KHM/2
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Imports, 1995 Share % Imports, 1996 Share % Imports, 1997 Share %
Australia 13,598.10 1.26 5,210.00 0.52 10,980.49 1.00
New Zealand 249 0.02 135.8 0.01 821.48 0.08
Total 191,130.60 17.77 148,625.70 14.85 39,279.69 29.17
European
Union
France 34,443.30 3.20 18,834.60 1.88 40,684.23 3.72
UK  811.00 0.08 1,104.50 0.11 13,834.81 1.26
Germany 7,746.60 0.72 2,581.40 0.26 8,637.690 0.79
Denmark 177.90 0.02 1,874.00 0.19 6,887.32 0.63
Netherlands  234.00 0.02 333.80 0.03 3,870.21 0.35
Belgium/
Luxembourg 423.60 0.04 1,305.30 0.13 2,210.46 0.20
Italy 404.50 0.04 14,839.60 1.48 2,046.03 0.19
Spain 234.00 0.02 1,412.10 0.14 1,698.74 0.16
Austria 161.90 0.02 373.30 0.04 603.62 0.06
Ireland 103.80 0.01 0.02 0.00 119.22 0.01
Portugal 31.20 0.00 0.00 0.00 0.00 0.00
Greece 0.00 0.00 0.00 0.00 0.00 0.00
Finland 0.00 0.00 0.00 0.00 0.00 0.00
Sweden 0.00 0.00 0.00 0.00 0.00 0.00
Total 44,771.80 4.16 42,658.62 4.26 80,592.33 7.36
Other
Russia
(Fmr USSR)1,642.70 0.15 689.80 0.07 6,113.56 0.56
India 959.80 0.09 834.50 0.08 5,823.55 0.53
Total 2,602.50 0.24 1,524.30 0.15 11,937.11 1.09
Sub-Total 1,037,304.00 92.29 893,878.40 89.33 818,855.73 74.81
Total All 1,075,425.90 100% 1,000,602.10 100% 1,094,544.37 100%
Table A1-19: Destination of Domestic Exports- By Major Trading Bloc (Thousands US dollar)
Exports, 1995 Share % Exports, 1996 Share % Exports, 1997 Share %
ASEAN
Thailand        173,475.30    46.32 116,831.80    30.52 129,179.11    26.18
Singapore        107,265.10    28.64 109,166.70    28.52 72,587.21    14.71
Vietnam          13,674.00      3.65 24,425.10      6.38 34,500.52      6.99
Malaysia            2,162.60      0.58 3,126.80      0.82 10,730.09      2.17
Indonesia            2,756.60      0.74 532.30      0.14 776.23      0.16
Philippines              764.10      0.20 129.70      0.03 414.87      0.08
Lao PDR              716.50      0.19 54.80      0.01 10.96      0.00
Myanmar 0.00 0.00 84.00      0.02 0.83      0.00
Total        300,814.20    80.32 254,351.20    66.45 248,199.82    50.30
Other "APEC"
USA 4,378.50      1.17 2,065.50      0.54 84,106.28    17.04
China 3,547.50      0.95 5,533.90      1.45 44,772.49      9.07
Taiwan 7,853.60      2.10 7,600.80      1.99 18,808.74      3.81
Hong Kong 21,196.50      5.66 11,508.00      3.01 12,510.82      2.54
Japan 5,287.80      1.41 5,036.80      1.32 6,176.87      1.25
Australia              308.20      0.08 617.10      0.16 998.18      0.20
New Zealand 0.00 0.00 9.00      0.00                48.63      0.01
Total 42,572.10    11.37 32,371.10      8.46 167,422.01    33.93
European Union
UK 9,429.30 2.52 30,568.30      7.99 30,689.87      6.22WT/ACC/KHM/2
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Exports, 1995 Share % Exports, 1996 Share % Exports, 1997 Share %
Germany 3,433.00      0.92 12,926.40      3.38 17,616.46      3.57
France            8,913.00      2.38 39,613.30    10.35 9,551.24      1.94
Belgium/
Luxembourg           1,155.20      0.31 2,198.70      0.57 2,863.42      0.58
Ireland 0.00 0.00 1,647.60      0.43 2,316.25      0.47
Netherlands 837.50      0.22 2,287.50      0.60 2,114.73      0.43
Italy 20.80      0.01 156.90      0.04 1,656.63      0.34
Denmark 741.60      0.20 1,754.50      0.46 979.85      0.20
Spain 0.00 0.00 287.70      0.08 609.63      0.12
Portugal 0.00 0.00 582.70      0.15 290.48      0.06
Austria 0.00 0.00 147.10      0.04 114.10      0.02
Greece 0.00 0.00 53.00      0.01 81.08      0.02
Finland 0.00 0.00 0.00 0.00 0.00 0.00
Sweden 0.00 0.00 0.00 0.00 0.00 0.00
Total          24,530.40      6.55 92,223.70    24.09 68,883.74    13.96
Other
Russia
(Fmr USSR)109.80      0.03 923.50      0.24 3,053.99      0.62
India 389.00      0.10 0.40      0.00 2,499.49      0.51
Total              498.80      0.13 923.90      0.24 5,553.48      1.13
Sub-Total 368,415.50 98.37 379,869.90 99.24 490,059.05 99.31
Total All 374,512.90 100% 382,766.20 100% 493,446.76 100%WT/ACC/KHM/2
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ANNEX 2
LIST OF LAWS AND LEGAL ACTS
1. List of laws and legal acts regulating the activity of the customs authorities; responsible
agencies
Laws
- Law on Import and Export Duties, 15 September 1989, Ministry of Economy and
Finance
- Law on Taxation of January 1997; Ministry of Economy and Finance;
Sub-decree
- Sub-Decree on Abolishment and Installation the Checking Point along the Border and
Transportation Network of Cambodia; No75, 19 October 1995; Council of Ministers.
Decisions
- Decision on the Procedure for Export of Timber, Sawn Timber and Transformable
Timber (7 January 1993, Ministry of Agriculture, Forestry and Fisheries
- Decision on the Annulment the Existing Procedure for Timber Export, #65, dated
18 June 1994, Ministry of Agriculture, Forestry and Fisheries.
- Decision of the Government on export regulation of timber, #17, dated 29 April 1997,
Ministry of Agriculture, Forestry and Fisheries.
- Decision on the Implementation of Customs Tariffs No.002, 14 September 1997.
Declarations (Prakas)
- Prakas of the Ministry of Economy and Finance on turnover tax, (# 342, dated May
1997),
- Prakas of the Ministry of Economy and Finance on amendment of the composition of
the committee for settlement the complain  of the importer and exporter on pre-shipment inspection, (# 305, dated August 1996),
- Prakas of the Ministry of Economy and Finance on pre-shipment inspection to
imported products to the Kingdom of Cambodia, (# 321, dated 8 September 1995),
- Prakas on the Supplement and the Amendment of the Items Tax in the Provinces and
Municipalities (No. 015, 18 December 1993 Ministry of Economy and Finance)
Prakas on the  Amendment of the Stamp Tax ( No. 014, 4 February 1994, Ministry of
Economy and Finance)
- Prakas on the Customs Tax Reduction on some Import Items in the Customs Tax
Table (No. 0245, 7 March 1994, Ministry of Economy and Finance)
- Prakas on the Amendment of the Import Customs Tax Rates on Gasoline (No. 001,
4 January 1995, Ministry of Economy and Finance)
- Prakas on the Procedures to Determine Tax Rates (No. 260, 21 June 1995 Ministry of
Economy and Finance)
- Prakas on the Amendment of the Import Custom Tax Rates on Passenger Vehicles
and other Vehicles Listed in the Custom Tax Table, Line 87.03  (No. 293,11 August 1995,  Ministry of Economy and Finance)
- Prakas on the Implementation of the Custom Tax  on Selected Import Items (No. 329,
2 October 1995,  Ministry of Economy and Finance)WT/ACC/KHM/2
Page 69
- Prakas on the Determination of the export  Custom Tax Rates on Rubber Latex (No.
330, 2 October 1995,  Ministry of Economy and Finance)
2. Laws and legal acts relating to non-tariff regulation of imports, exports and trade in
transit, rules of origin: responsible agencies
Laws
- Law on the Import and Export (No. 57, 20 June 1989, Ministry of Commerce, State
of Cambodia)
Sub-decrees
- Sub-Decree on the Control of Hygien e on Import and Export Goods (No. 98,
8 October 1983,  Peoples Republic of Kampuchea); Ministry of Health
- Sub-Decree Governing Public Procuremen t in the Kingdom of Cambodia (No. 60,
25 June 1995) Ministry of Economy and Finance
- Sub-Decree on Conferring the Right to Se ll and Export Rubber Products to the
Ministry of Agriculture, Forestry and Fisheries, 13 October 1994.
- Sub-Decree on the Administration of Small Scale Industry and Handicraft; No12,
dated 4 June 1991, Ministry of Industry, Mines and Energy.
- Sub-Decree on the Administration and Contro l of Quality of Industry and Handicraft
Products; No 4, dated 26 February 1992, Ministry of Industry, Mines and Energy.
Decision
Decision on the Creation of Inter-Ministerial Commission for the Preparation and
Organization of Import and Export Procedures an d Regulations; 19 September 1994, Ministry of
Economy and Finance.
Declaration (Prakas):
- Declaration on the Authority to Sign Standard GSP Letter; November 21,1994;
Ministry of Commerce;
3. Laws and regulations relating to foreign investment: responsible agencies
Law
- Decree on Contract and other Liabilities; 28 October 1988; Council of State People's
Republic of Kampuchea;
- Law on Investment; 4 August 1994, Council for the Development of Cambodia.
- Law Bearing Upon Commercial Regulations and the Commercial Register;
3 May 1995, Ministry of Commerce
- Law on the Chambers of Commerce; 16 May 1995, Ministry of Commerce
- Law on the Supervision of  Financial Institutions; 10 August 1992; National Bank
State of Cambodia;
- Law on River Navigation (Inland Water); 1 May 1991; State of Cambodia, Ministry
of Public Works and Transport.
- Law on Immigration; 26 August 1994, Ministry of Interior.
- Law on the Import and Export (No. 57, 20 June 1989, Ministry of Economy and
Finance)WT/ACC/KHM/2
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- Law on the Establishment of Insurance Business (No. 13, 30 January 1992, State of
Cambodia), Ministry of Economy and Finance
Sub-decree
- Sub-decree on Conferring the Right to Sell and Export Rubber Products to the
Ministry of Agriculture, Forestry and Fisheries; 13 October 1994; Council of
Ministers;
- Sub-Decree on the Management of Foreign Exchange, Precious Metals and Stones;
8 November 1991;  (State of Cam bodia), National Bank of Cambodia
- Sub-decree on the Organization and Functioni ng of the National Bank of Cambodia;
26 January 1996; National Bank of Cambodia.
- Sub-decree on the Export of Khmer Labour to Work Overseas; 20 July 1995,
Ministry of Social Affairs and Labour.
- Sub-decree on the Control of Hygien e on Import and Export Goods (No. 98,
8 October 1983, People's Republic of Kampuchea) Ministry of Health.
- Sub-decree on the Implementation of the Law on Investment (No. 88,
29 December 1997.
Decision:
- Decision on the Procedure for Export of Timber, Sawn Timber and Transformable
- Timber (7 January 1993, Council of Ministers)
- Decision on Buying Insurance in the Country (January 1993, Council of Ministers,
State of Cambodia )
Declaration (Prakas)
- Declaration  on the Application for Opening and Closing Companies; 6 August 1993;
Ministry of Social Welfare and Labour, provisional National Government Cambodia;
- Prakas on the Setting Up of Border Check-points and the Control of Entry and Exit of
Foreigners Passing Through Check-points (No. 553, 10 November 1995, Ministry of
Interior)
- Prakas on Procedures Pertaining to the Issuance of Travel Document and Permits
(No. 554, 10 November 1995, Ministry of Interior)
Circular (Sarachor)
- Circular on the Certification of the Business Account; 4 April 1994; Ministry of
Economy and Finance;
- Circular on Insurance for Goods or Materials Imported to Cambodia (No. 002,
6 April 1993, Ministry of Finance, State of Cambodia)
- Circular on the Registration of Business Legal Entities (No. 124, 10 May 1994,
Ministry of Commerce)
5. (a) Existing laws, regulations or administra tive guidelines which significantly affect
trade in services
- Law on the Organization and Functioning of the National Bank of Cambodia;
26 January 1996
- Law on Foreign Exchange rate; 22 Augu st 1997, National Bank of Cambodia.
- Labour Law;WT/ACC/KHM/2
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- Law on the Establishment of the Insurance Industry; No13, 13 January 1992; Ministry
of Economy and Finance.
- Law on the Management of Pharmaceuticals; 9 May 1996; Ministry of Health.
- Law on Press, Ministry of Information.
- Law on the Statute of State Enterprises; 18 July 1995; Ministry of Economy and
Finance.
- Law on the Supervision of Financial Institutions; 10 August 1992; National Bank of
Cambodia;
- Law on Investment of 4 August 1994; Council for the Development of Cambodia.
- Law on Registry of trades NS 0695/04 dated 25 June 1995; Ministry of Commerce;
- Sub-Decree No 29 the ANKr. on the supervision of commercial banks of 16
November 1992; National Bank of Cambodia.
- Sub-decree No 88 of 29 December 1997 on the Implementation of the Law on
Investment, Council for the Development of Cambodia.
- Sub-Decree No5 ANKr on obligation for a company to maintain accounting records
of 5 March 1993; Ministry of Economic and Finance.
- Sub-Decree No30 SD on the creation of “ decentralized rural credit committee" of
8 February 1995;Ministry of Economy and Finance - National Bank of Cambodia;
The following prakas, regulations and circulars have been issued by the National Bank of
Cambodia:
- No 593-01 of 18 January 1993 regulation on the maintenance of a quarantine deposit;
- Declaration: No793-282 on the maintenance of required reserves against deposits and
other borrowings by financial institutions; 30 December 1993;
- No794-001-R3 of 1 January 1994 regulation on minimum capital (Repealed and
replaced by regulation No 797-147 prokor dated 29 December, 1997);
- No 794-78 (and circular No 794-002) of 31 December 1994 prakas regarding the
classification of and the policy regarding the creating of provisions for bad and
doubtful debts by a commercial bank;
- No 795-01 (and circular) of 16 January 1995 regulation on the monitoring of banks’
or financial institutions’ open foreign exchange positions;
- No 795-02 of 30 March 1995 (and circular of 31 March 1995) regulation on the late
submission of the commercial banks’ report;
- No 795-03 of 22 May 1995 (and circular of 27 May 1995) regulation on risk cover
ratio      (capital adequacy);
- No 795-04 of 23 June 1995 Instruction for mont hly statement of Assets and Liabilities
on Diskette;
- Regulation No 993-06 of 22 September 1993 on the creation of foreign exchange
market;
- Regulation No 593-208 of 22 November 1993 on the use of Khmer language and
domestic money in the periodic accounting reports;
- Regulation No 594-03 of 30 June 1994 on off balance sheet format in addition to the
periodic financial situation reports;
- Regulation No 595-47 of 16 March 1995 on the liberalization of interest rate;
- Regulation No 594-73 of 16 May 1995 on refinance rate;
- Prakas (Notice  ) No 796-153 Bis date 25 October 1996 . According to the Prakas, it
does not apply to licenses for foreign bank branches in Cambodia which shall be
governed by a separate regulation;
- Prakas No B797-147 Prokor of 29 December 1997 on Condition for banks and
financial institutions;WT/ACC/KHM/2
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- Regulation No Thor 797-02 BB of 26 December 1997 on the amendment of the
maintenance of required reserves against deposit and other borrowings for financial
institutions;
- No 797-092 declaration of loans from 1 hundred millions dollar and 3 hundred million
Riels, Credit classification, standard, Sub-standard, doubtful and lost;
(b) Publications or sources of information, concerning measures of general application, of
relevance to the GATS
Ministry of Economy and Finance: Monthly Bulletin of Statistics;
National Bank of Cambodia: Economic and Monetary Statistics Review;
Ministry of Commerce: Weekly  Business Roundup;
(c) Inquiry points, if any, as foreseen in Article III of the GATS
The inquiry points referred to in Article III of GATS have not yet been established.WT/ACC/KHM/2
Page 73
ANNEX 3
INFORMATION ON IMPORT LICENSING PROCEDURES
I. OUTLINE OF SYSTEMS
Most imported goods may enter Cambodia without an import licence. However, certain goods
may effect the health of citizens, consumer or environmental welfare or national security and are
subject to import licensing.
II. PURPOSES AND COVERAGE OF LICENSING
Cambodia has one import licensing system which is not intended to restrict imports of goods.
The following goods are subject to import licensing:
HS Codes Description Government Body in charge of import licensing
36; 93 Weapons, explosives Ministry of National Defense
88; 89 Vehicles, machinery
for military purposesMinistry of National Defense
71.06; 71.08;
71.18Gold and silver Central Bank
29.36; 29.37; 30 Pharmaceuticals and
medical materialMinistry of Health
See also Ministry of Commerce Announcement No.2211 in Annex 8, page 130.WT/ACC/KHM/2
Page 74
ANNEX 4
INFORMATION ON IMPLEMENTATION AND
ADMINISTRATION OF THE CUSTOMS VALUATION AGREEMENT
Cambodia is not a member of the WTO and is not implementing or administering the
Customs Valuation Agreement. The following provides information on current policies and
procedures of the Customs Department with respect to customs valuation.
1. (a) In making customs valuations, the Customs Department does not treat sales between
related persons differently from sales between unrelated persons. The contract entered intobetween the Royal Government and the pre-ship ment inspection firm for the supply of pre-
shipment inspection services does not require sales between related persons to be treated
differently from other sales.
(b) When goods are damaged or lost, an investigative committee is formed consisting of
local office staff from the Customs Department, port authority, transport company,
CAMCONTROL and the owners of goods or their representative. This committee evaluates
the damage and loss and, in the light of its findings, makes the report to the Director of
Customs for approval.
2. The Cambodian Customs authorities have only two bases for customs valuation: the invoice
price and market prices. They do not attempt to value goods by their cost of production.
3. Cambodia does not use computed values based on cost in determining customs values.
4. Customs valuation is on a CIF basis.
5. Customs valuation is made in Riel. The exchange rate used is the official exchange rate on the
day the customs declaration is registered. The National Bank of Cambodia determines and makes
available daily the official exchange rate.
6. The information used for customs valuation--invoice cost and open market price--are not of a
confidential nature.
7. When valuation is determined through pre-shipment inspection, the appeals procedure is as
described above (See Section IV.1.j above). For imports not subject to pre-shipment inspection, an
appeal of a valuation decision may be made to th e Ministry of Economy and Finance, whose ruling is
final.
8. The Customs Law of 1989 is published. When changes in customs procedures are introduced
this is made known through notices in the media. The Department of Customs provides a briefing to
the 30-50 largest importers on the changes. Copies of all Ministerial Decisions, Instructions, etc. areavailable to the public on request.
9. The Director of Customs is empowered to approve the removal of goods from customs before
a decision on valuation has been made. He ma y or may not require a financial guarantee.
10. There are no rules stipulating that an explanation for a customs valuation must be provided in
writing, and this is not the practice.WT/ACC/KHM/2
Page 75
11. At present, the draft Customs Code is under preparation which would take into account the
provisions of the WTO Agreement on Customs Valuation.
12. Cambodia needs a comprehensive technical assistance from the WTO Members and
international organizations with regard to customs valuation rules and procedures.WT/ACC/KHM/2
Page 76
ANNEX 5
INFORMATION ON TECHNICAL BARRIERS TO TRADE
Cambodia is not a member of the WTO and is not implementing or administering the WTO
Agreement on Technical Barriers to Trade.
All information available on technical regulations and standards is reproduced in Section
IV.3(b).WT/ACC/KHM/2
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ANNEX 6
INFORMATION ON STATE-TRADING ENTERPRISES
Cambodia has no state-trading enterprises as defined by Article XVII of GATT 1994 and the
WTO Understanding on the Interpretation of Article XVII. State-owned and private enterprises
compete on the same footing in conducting domestic and international trade.WT/ACC/KHM/2
Page 78
ANNEX 7 A
SERVICES SECTORAL CLASSIFICATION LIST
I. BUSINESS SERVICES1. Professional Services
Types of Services Licensing Authorities Qualification requirements and measures
Legal services General Prosecutor of the
Appeal CourtThe Law on the Bar was adopted by the National
Assembly on 15 June 1995.
Article5: Foreign lawyers whose names have been
registered by the Bar of a foreign country or whohave been recognized and authorized by thecountries of their origin to practice the legalprofession have the right to practice the profession
with a khmer lawyer and accompany /assist khmer
lawyers before the courts or other institutions of theKingdom of Cambodia. Foreign lawyers may notrepresent clients.Article6: Foreign lawyers may only practice theirprofession in the territory of the Kingdom of
Cambodia with authorization from the Khmer Bar
Council; this authorization will depend on thesufficiency of qualifications of the foreign lawyerand will only be granted when the country of originof the foreign lawyer provides this same possibilityto Cambodian lawyers. This authorization may be
withdrawn if there is malpractice during the
practice of the legal profession in the territory ofthe Kingdom of Cambodia.A Decision by the Bar Council not to authorizepractice of the legal profession or to removeauthorization shall be communicated within 15 days
to the General Prosecutor of the Appeal Court and
to the concerned person. Appeal may be madeagainst this Decision within a period of 2 monthsfrom the date this information is received.Article7: Those foreign lawyers who have been
authorized to practice this profession may not
perform any activity to attract clients or do anycommercial advertising.
Accounting, auditingand bookkeepingMinistry of Economy and
FinanceAuditing: The Ministry of Economy and Finance
has drafted a Law on Audit. This draft law  createsand regulates the functioning of the National AuditAuthority.
Accounting: The current law, enacted in 1992 does
not contain qualification requirements. To ensurethat Cambodia’s accounting system is morecompatible with systems used in ASEAN, theMinister of Economy and Finance has directed theDepartment of Accounting to prepare a draft law
that meets international standards and is more in
line with the practices of ASEAN countries. Thisdraft law was approved by the Council of Ministersand has been submitted to the National Assemblyfor adoption.WT/ACC/KHM/2
Page 79
Types of Services Licensing Authorities Qualification requirements and measures
Architectural services Cabinet of Council of
Ministers on the
recommendation of theMinistry of Public Worksand Transport.Sub-degree on the issuance of certificates of
construction, dated 19 December 1997, states that
the person who makes the construction project mustbe an architect of Khmer nationality or a personwho has received a “contribution “from a Khmerarchitect, is recognized by the Royal Government
of Cambodia and was proposed by “competent
authorities or the Khmer Architects Commissiononce the commission is established.
Integrated engineeringservices-Ministry of Public Works
and Transport.-Cabinet of Council ofMinisters.-Ministry of Industry,
Mines and EnergyNot yet regulated
Urban planning and
landscape architecturalservices-Ministry of Public Works
and Transport.-Cabinet of Council ofMinisters.-Phnom Penh AuthorityNot yet regulated
Medical and dental
servicesMinistry of Health A draft Law on Medical Services which has been
submitted by the Ministry of Health to the Council
of Ministers for approval. The draft law specifies
that only a person with the following characteristicsmay practice medicine in Cambodia. That personmust:--be of Cambodian nationality;--possess a certificate of medical training
recognized by the Ministry of Health;
--be of good health and without a criminal record.According to the draft law, non-Cambodians areallowed to practice medicine when the Ministry ofHealth determines that this is in Cambodia'sinterest.
Services provided bymidwives, nurses,physiotherapists andpara-medical personnelMinistry of Health Same as above.
2. Computer and Related Services
There are currently no licensing or qualification requirements for computer and related
services in Cambodia.WT/ACC/KHM/2
Page 80
3. Research and Development Services
Types of Services Licensing Authorities Qualification requirements
R&D services on
natural sciences-Ministry of Agriculture, Forestry and
Fishery-Ministry of Industry, Mines and EnergyNot yet regulated
R&D services on
social sciences andhumanities-Ministry of Education, Youth and Sport Not yet regulated
Interdisciplinary R&D
services-Ministry of Education, Youth and Sport Not yet regulated
4. Real Estate Services
Types of Services Licensing Authorities Qualification requirements
Involving own  or
leased property-Cabinet of Council of Ministers.
-Ministry of Agriculture, Forestry andFisheryNot yet regulated
On a fee or contract
basis-Cabinet of Council of Ministers. Not yet regulated
5. Rental/Leased Services without Operators:
Types of Services Licensing Authorities Qualification requirements
Relating to ship Ministry of Public Works and Transport. Not yet regulated
Relating to aircraft State Secretariat for Civil Aviation Not yet regulated
Relating to other
transport equipment-Ministry of Public Works and Transport.
-State Secretariat for Civil AviationNot yet regulated
Relating to other
machinery andequipment-Ministry of Public Works and Transport.
-State Secretariat for Civil Aviation-Ministry of Agriculture, Forestry andFishery-Ministry of Industry, Mines and EnergyNot yet regulated
6. Other Business Services
Types of Services Licensing Authorities Qualification requirements and
measures
 Advertising services None A monopoly contract on outdoor
advertising in Phnom Penh, signedin 1994 between the Phnom Penh
Authority and a Cambodian
national, will end in 2003. Not yetregulated
 Services incidental tominingMinistry of Industry, Mines and Energy A draft Law on Mining has been
submitted by the Ministry ofIndustry, Mine and Energy to theCouncil of Ministers for approval.
 Services incidental tomanufacturingMinistry of Industry Mines and Energy Not yet regulated
 Services incidental to
energy distributionMinistry of Industry, Mines and Energy Not yet regulatedWT/ACC/KHM/2
Page 81
Types of Services Licensing Authorities Qualification requirements and
measures
Placement and supplyservices of personnelMinistry of Social Affairs Labour and
Veterans AffairsNot yet regulated
Investigation and
securityMinistry of  Interior Not yet regulated
 Related scientific and
technical consultingservices-Ministry of Commerce
-Ministry of Industry, Mines and Energy-Ministry of Agriculture-Ministry of EducationNot yet regulated
 Maintenance and repair
of equipment (not
including maritimevessels, aircraft or othertransport equipment-Ministry of Industry, Mines and Energy
-Ministry of Public Works and Transport.Not yet regulated
 Photographic services None Not yet regulated
 Packaging services -Ministry of Industry, Mines and Energy Not yet regulated
 Printing, publishing Ministry of Information Law on the Press Regime, dated 1
September 1995, stipulates thatpublication of obscene texts orpictures and graphically violent
materials are prohibited.
The total number of khmerlanguage newspapers owned orpossessed by foreigners may notexceed 20 per cent of the total of allkhmer language newspapers
published in Cambodia.
II.  COMMUNICATION SERVICES
Although precise quantitative information is often lacking, it is clear that communications
services have grown very rapidly during the past se veral years, and that the market for such services
will continue to expand rapidly in the period ahead.
1.  Postal services
The Ministry of Posts and Telecommunications owns and operates the national postal system.
The tariffs for main types of service are established by the Ministry of Posts and
Telecommunications on the basis of the consumer Price Index and the convention of Universal Postal
Union (UPU).
There are 40 Post Offices in Cambodia: One Post al Department and 6 Post Offices under its
supervision; 23 provincial and town Cabinets and 10 district post offices. Total number of post offices
in Cambodia is 40.  The Post Offices in Phnom Penh provide all types of postal services as listed
below. Six provincial cabinets provide Express Mail Services (EMS) and parcel services within and
outside the country, as well as letter services; the remaining cabinets provide only letter services.
The main services provided by Post Offices in Phnom Penh include :- Correspondence delivery (letter, post cards, business correspondence, registered mail)
- Distribution of newspapers and magazineWT/ACC/KHM/2
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- Parcel services
- EMS
- P.O Boxes
- Bulk mail
- Express mail within and outside the country
- Surface Mail service to neighbouring countries
The table below shows the volume of main correspondence handled by the postal services
during 1997 and 1998.
Type of correspondence for 1997 and 1998 (number of units handled)
Type of correspondence 1997 1998
Letters 2,300,702 3,310,790
Parcels and Packets 2,117 20,594
EMS 2,844 5,413
Express 4,231 9,304
2. Courier services
A number of foreign companies, such as DHL, TNT, OCS, UPS, and FedEx, provide courier
services in Cambodia. This market is not yet regulated. In principle, a licence from the Ministry of
Posts and Communications is required to operate businesses in this market. In practice, firms have
operated so far without licenses.
3. Telecommunication services
The Ministry of Posts and Telecommunications of the Kingdom of Cambodia is currently
responsible for the regulation, administration and management of the public telephone network and
the licensing of other related services supplied by the joint venture partners. The MPTC has stated as
primary policy position that all basic telecommunicat ion services and facilities are operated by MPTC
functioning as the dominant carrier. The Ministry operates and administers all telecommunications in
the country, sets policy and at present acts informally as the regulator and standard setting body.
MPTC is responsible for issuing licenses and also has the responsibility for promulgating and
administering the regulations governing the licensed activity.
With regard to telecommunications services, licensing and qualification are required from the
Ministry of Posts and Telecommunications. The qualification and licensing requirements for the
supply of telecommunication services cover:
- Minimum registered capital.
- Availability of office and approved necessary equipment.
- Professional qualification.
- Application submitted to CDC and to Prime Minister for final decision.
- Partnership agreement between MPTC and other parties to be made after receiving
the approval from the Prime Minister.
- Articles of association for the establishment of the company.
- Licence issued by MPTC stipulates the terms and conditions such as scope of licence
and right of the company, technical requirements, international standards
requirements of the equipment, performance guarantee of the system, tariff and
billing, fiscal and administrative matters, licence term, bank guarantee, network
ownership upon the expiration of the licence or extension.WT/ACC/KHM/2
Page 83
- Registration at the Ministry of Commerce.
The MPTC has received the approval from the Royal Government of Cambodia to establish
joint venture companies between foreign companies and the Ministry of Post and
Telecommunications of Cambodia for the provision and operation of Mobile Cellular Services, asfollows:
- CASACOM (Cambodia Samart Communication Co., Ltd.) using the system NMT
(Nordic Mobile Telephone System) and the frequency band of 900 MHz. This
company has extended its network to nine (9) provinces such as: Phnom Penh,
Battambang, Koh Kong, Sihanouk Ville, Siem Reap, Kompot, Takeo, Kampong
Cham, and Kandal. The total number of subscribers was 19,750 as of 31 March 1998.The original contract was signed on 19 October 1992. Its amendment for provision
and operation of GSM Digital Cellular Mobile Telephony services was later signed
on 20 June 1996, between MPTC and Cambodia Samart Co., Ltd. (CS).
- CAMTEL (Cambodia Mobile Telephone Company Limited), using the system AMPS
(Advanced Mobile Phone System) and the frequency band of 800 MHz. As of end
March 1998, it had 5,286 subscribers. The original contract was signed on
8 August 1992. The supplementary agreement was signed on 29 September 1997 for
the provision and operation of CDMA Digital Cellular Mobile Telephony services
within the Kingdom of Cambodia.
- TRICELCOM (Technology Resources Industries Cellular Communications
Cambodia Company Limited), using the system ETACS (Enhanced Total Access
Communications System) and the frequency band 900 MHz, and having 5,115
subscribers as of end of March 1998. The contract was signed on 15 February 1993.The supplementary agreement was signed on 14.3.97 for the provision and operation
of a PCN 1800 and ETACS Cellular Mobile Telephone Network in the Kingdom of
Cambodia.
- CAMGSM (Cambodia GSM or Mobitel). The Royal Government of Cambodia has
entered into an agreement with Royal Millicom Co., Ltd., composed of local
company Royal Group and foreign company Millicom from Sweden, to establishanother Joint Venture company for the provision and operation of GSM Digital
Cellular Mobile Telephone services, using modern technology, which was officially
inaugurated and commissioned on 11 March 1997. The contract was signed on
20 April 1996. The number of subscribers as of the end of March 1998 was 7030.
- CAMSHIN (Cambodia Shinawatra Compan y Limited). Apart from the above
mentioned 4 Cellular Mobile Telephone companies, there is another joint venture
company for the provision and operation of Wireless Local Loop ( WLL ) using the
frequency band of 450MHz and having as of 31 March 1998 the number of 6.975
subscribers. The contract was signed on 4 March 1993. The supplementary agreementwas signed on 4 March 1997 for the provision and operation of wireless
telecommunication system and services  within the Kingdom of Cambodia.
- CAMINTEL In addition to the 4 mobile cellular companies and to the existing WLL
company, the Royal Government of Cambodia also established another joint venture
Company called “CAMINTEL”, between MPTC (51 per cent equity share) and
INDOSAT company from Indonesia (49 per cent equity share), for the rehabilitationWT/ACC/KHM/2
Page 84
and improvement of the System Equipment of the EX UNTAC8 telecommunication
network. This company has expanded its network and services to all provinces and
cities, using the satellite transmission Palapa in Indonesia. The existing subscribers
were estimated at 3,114 as of 31 March 1998. The Agreement between MPTC and
Indosat was signed on 29 December 1994.
A Business Cooperation Contract (BCC) was signed on 17 February 1990 between MPTC
and OTC international Australia Limited, (now Telstra) for the investment in the Cambodia
International Telecommunication Network.
According to the Master Plan for Telecommunication Development in the Kingdom of
Cambodia, established by the International Telecommunications Union (ITU) and adopted by theCouncil of Ministers on 6 February 1997, the demand forecast of telephone users during the next five
years (1997-2003) is estimated at over 138,000 subscribers lines, including 72.500 lines for all
provinces and cities and 65.500 lines for Phnom Penh city.
In order to respond to the above demand and to continue the implementation of the free
market economic policies, the Royal Government of Cambodia has authorized private local and
foreign  companies  to establish more joint venture companies for investment in Cambodia's
telecommunication development, as follows:
- American Cambodian Telecom Ltd. The Agreement between MPTC and Portacom
Wireless Inc. from USA was signed on 26 December 1996 for the provision and
operation of a CDMA based telecommunication system (reference: letter of Council
of Ministers No.1052sCN dated 17-09-1996).
- R.T.I. (Royal Telecam International Ltd.) The joint venture Agreement between
MPTC and Royal Millicom Co., Ltd. was signed on 6 June 1997 for the provision of
international services and operation of an International Gateway (reference: letter of
Council of Ministers No.642sCN dated 31 May 1996).
- Internet Services Agreement between MPTC and Telstra international Ltd.
(Australia) was signed on 25 February 1997 for the provision of Internet Services in
Cambodia.
- Khmer Telecom Company Limited. The J.V Agreement between MPTC and Tong
Yang Cement Co. Ltd. (TYC) and Khaou C huly Development Co., Ltd. (KC) for the
provision of international Telecommunications from and to the Kingdom of
Cambodia.
The Ministry has granted and issued the licenses to the 2 following companies for the
provision and operation of TLMRS (Trunk La nd Mobile Radio System) in the Kingdom of
Cambodia:
- Cambodia National Communications (CNC): Licence was issued on 13 March 1996.
- Mekong Telecom Mobile Ltd.: Licence was issued on 5 June 1996.
                                                     
8 The United Nations Transitional Authority in Cambodia, whose telecommunications network in
Cambodia was donated to the Cambodian government upon termination of the UNTAC mandate.WT/ACC/KHM/2
Page 85
4.   Audiovisual services
Types of Services Licensing Authorities Qualification requirements
 Motion picture and
video tape productionand distribution services-Ministry of Information
-Ministry of Culture and Fine ArtsNot yet regulated
 Motion picture
projection services-Ministry of Information
-Ministry of Culture and Fine ArtsNot yet regulated
 Radio and television
servicesMinistry of Information Not yet regulated
 Radio and television
transmission servicesMinistry of Information Not yet regulated
Sound services Ministry of Information Not yet regulated
III. CONSTRUCTION AND RELATED ENGINEERING SERVICES
Types of Services Licensing Authorities Qualification requirements
General construction
work for buildingMinistry of  Land Management, Urban
Planning, and ConstructionsSame as in architectural services
 General construction
work for civil
engineeringMinistry of Public Works and Transport. Same as above
Installation and assembly
workMinistry of Industry, Mines and Energy Same as above
Building completion and
finishing workMinistry of Land Management, Urban
Planning, and ConstructionsSame as above
IV. DISTRIBUTION SERVICES
Types of Services Licensing Authorities Qualification requirements
Commission agents’
servicesNone Not yet regulated
Wholesale trade services None Not yet regulated
Retailing services None Not yet regulated
Franchising None Not yet regulated
V. EDUCATIONAL SERVICES
Types of Services Licensing Authorities Qualification requirements
Primary education
servicesMinistry of Education, Youth and Sport Not yet regulated
Secondary education
servicesMinistry of Education, Youth and Sport Not yet regulated
Higher education
servicesMinistry of Education, Youth and Sport Not yet regulated
Adult education Ministry of Education, Youth and Sport Not yet regulatedWT/ACC/KHM/2
Page 86
VI. ENVIRONMENTAL SERVICES
Types of Services Licensing Authorities Qualification requirements
Sewage services Ministry of Environment Not yet regulated
Refuse disposal services Ministry of Environment Not yet regulated
Sanitation and similar
servicesMinistry of Health Not yet regulated
VII. FINANCIAL SERVICES
1. All insurance and insurance-related services
Currently, there is only one state owned insurance company which is carrying out all non-life
insurance in conformity with the provisions of the Law on the Establishment of Insurance Industry
promulgated on February 8,1992; Sub-decree on the Creation of the State Owned Insurance Company
known as the Cambodia National Insurance Comp any (CAMINCO) dated 20/09/1990; Sub-decree on
the Control of Insurance Activity dated 09/06/1992 and the Notice of the Government dated
022/09/1992 authorizing CAMINCO to carry out all insurance services in Cambodia. However,
private insurance agents and insurance brokers are allowed to operate in cooperation with and under
the supervision of CAMINCO.
In addition to the existing legal framework, a new draft Law on Insurance is being considered
by the Finance and Banking Committee of the National Assembly.
The main points covered by the draft law are as follows:- General provisions on the responsibility of an insurer.
- Insurance contracts, specifying the main conditions of the contract, property
insurance and life insurance.
- Conditions of motor vehicle insurance, construction insurance and passenger
transport insurance.
- Insurance agents and insurance brokers.
When this draft law is adopted:
- Motor vehicle insurance, construction insurance and passenger transport insurance
will be compulsory in Cambodia .The class of motor vehicle, the size of construction
projects and the means for passenger transport for which insurance is compulsory will
be specified in the Sub-decree of the Royal Government.
- All insurance companies must be registered at the Ministry of Commerce and operate
under the supervision of the Ministry of Economy and Finance. The Ministry of
Economy and Finance will be responsible for issuing licenses to insurancecompanies, insurance agents and insurance brokers.
- Only limited liability companies (private in surance company or joint-venture) will be
allowed to operate in Cambodia.
Three kinds of insurance company may be created:- Life insurance company
- Non-life insurance company
- Life and non-life insurance company.WT/ACC/KHM/2
Page 87
The provisions of the Law on the Statute of State Enterprises will be applied for the control of
the state company and joint-venture in which the state holds more than 51 per cent of the joint –
venture asset. With regard to a private company,  the control is carried out in conformity with
provisions stipulated in its licence.
The Sub-decree of the Royal Government will contain (after the promulgation of the Law) the
conditions for the establishment of insurance agents and insurance brokers, minimum capital
requirement and solvency margin. The Sub-decree will also regulate re-insurance and retrogression.
Types of Services Licensing Authorities Qualification requirements
a)life, accident  and health
insurance servicesMinistry of Economy and
FinanceThe draft Law on Insurance is
considered by the Finance and
Banking committee of the
National Assembly.
b)Non-life insurance services Ministry of Economy and
FinanceSame as above.
c)Reinsurance and retrocession Ministry of Economy and
FinanceSame as above
d)Services auxiliary to
insurance (including brooking
and agency services)Ministry of Economy and
FinanceSame as above
2. Banking and other financial services (excl. insurance)
Organisation
The banking system is a two-tier system: the central bank (the National Bank of Cambodia)
and commercial banks.
The Central Bank (See II.2.b)
The Central Bank has monetary authority which makes and implement monetary policy
(refinancing resource requirements, interest rate, etc…) and has supervisory control over the banking
system (it is empowered to licence, to enact prudential measure to be observed, and to take sanctions,etc.).
To accomplish its mission the Central Bank has been granted increased operational autonomy
and is empowered to issue regulations on matters of monetary policy and banking prudential
measures.
The commercial banks
They are established on the model of a full services bank adapted to local conditions.
The licensed banks offer the following services:
- Collecting deposits (sight, term, foreign currency, domestic currency),
- Granting credits,
- Handling inter-bank operations,WT/ACC/KHM/2
Page 88
- Managing means of payment,
- Dealing with securities, gold and foreign currency (for its own account or for the
account of the clients).
Prakas No.796-153 Bis, dated 25 October 1996 requires banks incorporated under domestic
law to be licensed to carry out banking activities. Separate regulations will be issued to cover
branches of foreign banks operating in Cambodia.
Composition
The Central Bank: the National Bank of Cambodia. Its head office is in the capital and has a
network of 20 branches in the provinces.
There are 31 commercial banks consisting of:
- 1 state owned bank in the course of privatization,
- 7 branches of foreign banks,
- 22 locally incorporated private banks,
- 1 representative office.
- 
- -Some hundreds of unofficial small rural credit entities.
Presently, these entities are decentralized and financed by international or foreign
organizations (UNDP-European Union, Caisse Francaise de Development, USAID, NGOs…)
They are to be federated in a mutual or cooperative institution under provisional supervision
of a technical unit constituted by an inter-ministerial committee (CCRD) which received, from theNational Bank of Cambodia, the mandate to take all measures in the prudential field and to prepare a
report on its mandate.
The Government has requested the CCRD to come up with a plan to establish specialty bank
dedicated to rural development to be called the Rural Development Bank. It is anticipated that funds
from donor countries will provide an initial contribution to the Bank’s capital, and that the Royal
Government will contribute the balance.
Characteristics
The banking system is concentrated in Phnom Penh. It is characterised  by an unusually high
proportion of assets held abroad .Foreign nati onal can open account in Cambodian bank. Like wise,
Cambodian national can open account with bank abroad.
Main financial feature
Balance sheet information at 31 December 1997:
Total assets 1,613,510.00 Million Riels
Credit to individuals or enterprises 649,761.00 Million Riels
Deposits by residents or non-residents 870,324.00 Million Riels
- Residents 712,118.00 Million Riels
- Non residents 158,208.00 Million Riels
Net worth 619,480.00 Million RielsWT/ACC/KHM/2
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Regulatory and Prudential Framework in Force
- Licence
- Issued by the Central Bank
- Valid three years
- Renewable
- Solvency
- Minimum capital  : 50 G (billion equalling thousand million) Riels
- Solvency ratio (Risk Cover Ratio) :  5 per cent
- Guarantee deposit at NBC : 10 per cent of registered capital
Liquidity
- Reserve requirement deposit 8 per cent (on deposit and borrowing)
- This regulation may be altered according to the needs of monetary policy. (See 2.6.1.
below)
- Exposure diversification:
- Applicable to credits and to participation shares
- participations are limited :
- individually to 15 per cent of the capital the target -company.
- Globally to 60 per cent of net worth of the bank.
- Strict limitation on the exchange positions (long or short position in each currency 5 per cent
of the bank’s net worth, aggregate short position 15 per cent of the bank’s net worth).
- Procedures for identification and reporting of doubtful loans.
- Obligatory monthly accounting reports.
- On-site inspections.
- Professional secrecy
- Sanctions
- disciplinary sanction (warning, reprimand, fine, etc…),
- receivership,
- or liquidation.
- Progressive normalization of decentralized rural credit
- The draft law on the establishment of commercial bank contains the conditions of issuing
licenses.
- It should be noted that current regulations do not limit foreign ownership of banks or restrict
or limit the activities of foreign-owned banks.
Monetary Policy Measure
- Credit
- Quantitative action
- Direct - credit ceilings.
- Indirect - control of banks liquidity by:WT/ACC/KHM/2
Page 90
- Refinancing in Riels ( none )
- .Reserve requirements : 8 per cent of liabilities
- .Primary interest rate on Riels liberal ( real interest rate should be positive ),
- .Base rate of NBC: 12 per cent
- Other
- Carrying out research into the quality of credits ( information, risks, unpaid
amount, rating )
Foreign Exchange
- The official exchange rate does not differ by more than +/-1 per cent from the average market
rate.
- The Central Bank may organize sales of dollars by auction.
- Exchange regulations provide de facto freedom for all payments.
- Research is underway on the question of an optimal exchange rate:
Only two constraints could be imposed on banks by new regulations for statistical reasons:- Compulsory use of the local banking system for all international transactions.
- Monthly declaration by banks of flows of foreign capital broken down by category.
Legal And Regulatory Framework
Laws and regulations relating to banking and other financial services of Cambodia can be
seen in Annex 2, section 5.
VIII. HEALTH RELATED AND SOCIAL SERVICES
Types of Services Licensing Authorities Qualification requirements
Hospital services Ministry of Health The draft Law on Medical
Services that contains
qualification requirement for
health services providers has
been submitted by the Ministry
of Health to the Council ofMinisters for the approval.
Other human health services Ministry of Health Same as above
IX. TOURISM AND TRAVEL RELATED SERVICES
Types of Services Licensing Authorities Qualification
requirements
Hotels and
restaurants(including catering)Ministry of Tourism Not yet regulated
Travel agencies and tour
operators servicesMinistry of Tourism Not yet regulated
Tourist guides services Ministry of Tourism Not yet regulatedWT/ACC/KHM/2
Page 91
X. RECREATIONAL, CULTURAL AND SPORTING SERVICES
Types of Services Licensing Authorities Qualification
requirements
Entertainment
services(including theatre, live
bands and circus services)-Ministry of Information
-Ministry of Culture and Fine ArtsNot yet regulated
News agency services Ministry of Information Not yet regulated
Libraries, archives , museums
and other cultural servicesMinistry of Culture and Fine Arts Not yet regulated
Sporting and other recreational
servicesMinistry of Education Youth
and SportNot yet regulated
XI. TRANSPORT SERVICES
Types of Services Licensing Authorities Qualification
requirements
Maritime transport services Ministry of Public Works and Transport. Not yet regulated
Internal waterways transport -Ministry of Public Works and Transport. Not yet regulated
Air transport services State Secretariat for civil Aviation Not yet regulated
Roads transport services -Ministry of Public Works and Transport. Not yet regulated
Pipeline transport -Ministry of Public Works and Transport.
-Ministry of Industry Mines and EnergyNot yet regulated
Services auxiliary to all modes
of transport-Ministry of Public Works and Transport.
-State Secretariat for civil AviationNot yet regulated
XII. OTHER SERVICES NOT INCLUDED ELSEWHERE
Institutional base for trade and economic relations with third countries.
Bilateral and Plurilateral Agreements Relating to Foreign Trade and Economic relations.Since the establishment of the Royal Government of Cambodia in 1993, the Kingdom of
Cambodia has concluded with 13 countries 24 agreem ents and memoranda of understanding relating
to economic cooperation, foreign trade, promotion and protection of investment and intellectual
property rights protection. (See table, below). Most of these agreements are with countries that aremembers of the World Trade Organization (WTO). Most provide for MFN and national treatment.
BILATERAL TRADE AGREEMENTS
No. Remarks
1 Trade Agreement between the
Government of the Kingdom ofCambodia and the Government
of the Republic of Indonesia,
Phnom Penh, 18/09/1997.MFN accorded with respect to customs duties and other
taxes and duties applicable to trade between the twocountries as agreed upon by them in the General
Agreement on Tariff and Trade (GATT-1994).WT/ACC/KHM/2
Page 92
No. Remarks
2 Trade Agreement between the
Government of the Kingdom ofCambodia and the Government of
the People’s Republic of China,
Beijing, 19/07/1997.MFN accorded with respect to customs duties and other
taxes and duties as well as requirements and formalitiesof custom clearance.
3 Agreement between the Kingdom
of Cambodia and the United
States of America on  Trade
Relations and Intellectual Rights
Protection,
Washington DC, 04/10/1996.MFN accorded to products in all matters relating to: (i)
customs duties and charges of any kind imposed on
importation and exportation, including the method of
levying such duties and charges.(ii) method of payment.
(iii) rules and formalities in connection with
importation and exportation, including those relating tocustoms clearance, transit, warehouses and
transshipment (iv) taxes and other internal charges of
any kind applied directly or indirectly to imported
products. (v) Laws, and Regulations affecting the sale,
offering for sale, purchase, transportation, distribution,storage and use of products in the domestic market.
Detailed provisions mirroring TRIPs on protection of
intellectual property.
4 Agreement on Trade, Economic
and Technical Cooperation
between the Government of the
Kingdom ofCambodia and the Government of
the Kingdom of Thailand,
Phnom Penh, 13/10/1996.MFN accorded with respect to duties, taxes and other
charges as well as customs formalities in connection
with the importation and exportation of goods.
5 Memorandum on Economic and
Trade Relations between the
Royal Government of Cambodia
and the Government of the
Republic of the Philippines,
17/12/1995.Closer cooperation in the economic and trade fields.
MFN treatment is not mentioned.
6 Agreement between the
Government of the Kingdom ofCambodia and the Government of
the Russian Federation on
Economic and Trade Relations,
Moscow, 25/05/1995.MFN accorded to products in respect to:
(i) customs duties and other taxes and duties as well asrequirements and formalities of customs clearance.(ii)
rules and formalities related to transit, warehouse and
transshipment.(iii) taxes and other charges applied
directly or indirectly to imported products.(iv) laws,
regulations and requirements affecting the sale,
purchase, transportation, or distribution in the domestic
market.
7 Agreement on Economic and
Trade cooperation between theRoyal Government of Cambodia
and the Government of the
Socialist Republic of Vietnam,
03/04/1994.The contracting parties shall discuss and study the MFN
principle so as to realize it effectively at a convenienttime.
8 Trade Agreement between the
Royal Government of Cambodia
and the Government of Lao PDR,12/05/1994.MFN treatment is not mentioned.WT/ACC/KHM/2
Page 93
No. Remarks
9 Trade agreement between the
Government of the SocialistRepublic of Vietnam and The
Royal Government of Cambodia,
24/3/1998.Grants Most-Favored-Nation Treatment
10 Trade agreement between The
Royal Government of Cambodia
and The Government of Lao
People Democratic Republic,
25/5/1998.Grants Most-Favored-Nation Treatment
11 Agreement Relating to Trade in
Cotton, Wool, Man-made Fibre,
Non-Cotton Vegetable Fibre andSilk Blend Textile and Textile
Products Between the Royal
Government of Cambodia and the
Government of the United States
of America, 20/01/99Most-Favored-Nation is mentioned with conditions.
12 Agreement between the European
Community and the Kingdom of
Cambodia on Trade in Textile
Products, 03/02/99Promotion of security for trade, the orderly and
equitable development of trade in textile products
13 Trade agreement between the
Royal Government of Cambodiaand the Government of Malaysia,
04/02/99Desirous of developing and strengthening trade and
economic relations between the two countries on thebasis of equality and mutual benefit. MFN is
mentioned.
OTHER BILATERAL AGREEMENTS
No.
1 Agreement between the Government of the Kingdom of Cambodia and the Government of
the Republic of Korea for promotion and protection of Investment,Phnom Penh, 10 September 1997.
2 Memorandum of Mutual Cooperation on Intellectual Property between the Ministry of
Commerce of the Kingdom of Cambodia and th e Ministry of Commerce of the Kingdom of
Thailand, Bangkok, 6 March 1997.
3 Agreement between the Government of the Kingdom of Cambodia and the Government of
the Republic of Singapore on the promotion and protection of Investment, Phnom Penh, 4November 1996.
4 Agreement between the Government of the Kingdom of Cambodia and the Swiss
Confederation on the promotion and Re ciprocal protection of Investment,
Phnom Penh, 13 October 1996.
5 Agreement between the Government of the Kingdom of Cambodia and the Government of
China on the promotion and protection of Investment,
Beijing, 19 July 1996.
6 Agreement between the Government of the Kingdom of Cambodia and the Government of
the Kingdom of Thailand on the promotion and protection of Investment, Bangkok 29 March
1996.
7 Investment Incentive Agreement between the Royal Government of Cambodia and the
Government of the United States of America, Phnom Penh, 4 August 1995.WT/ACC/KHM/2
Page 94
8 Agreement between the Government of the Kingdom of Cambodia and the Government of
the Russian Federation on Cultural and Scientific Cooperation,
Moscow, 25 May 1995.
9 Agreement between the Government of the Kingdom of Cambodia and the Government of
Malaysia on Economic, Scientific and Technical Cooperation,
Kuala Lumpur, 17 August 1994.
10 Agreement on Transit of Goods between the Royal Government of Cambodia and the
Government of the Socialist Republic of Vietnam, 3 April 1994.
11 Agreement on Transit of Goods between the Royal Government of Cambodia and the
Government of Lao PDR, 12 May 1994.
Economic Integration: customs union and free-trade area agreements
The signing of the Paris Peace agreement in 1991 and the democratic elections in 1993
opened up the opportunity for Cambodia to rejoin the international community and participate in
regional and multilateral institutions.
The Royal Government of Cambodia consider s Cambodia’s accession to the Association of
South-East Asian Nations (ASEAN) is  an important initial step towards the integration of Cambodia's
economy into the regional economy, a step which should be followed by  Cambodia’s joining WTO
and being fully integrated into the international trading system as a whole.
Cambodia obtained observer status in ASEAN in July 1995, and in April 1996 submitted an
official application for membership. Since then, Cambodia has been preparing so that it can meet allrequirements for joining ASEAN. Membership  of ASEAN was obtained in 30 April 1999.
Joining ASEAN automatically implies accession to the ASEAN Free Trade Area (AFTA).In this context, Cambodia will sign bilateral agreements with all ASEAN member-countries
with which it does not yet have such agreements.
In order to prepare adequately for its member ship of ASEAN, the Royal Government has set
up and/or strengthened various in-country liaison, preparatory and coordination mechanisms such as
the Internal Coordination Network headed by the Prime Minister, the ASEAN General Department at
the Ministry of Foreign Affairs and International Cooperation (which functions as Cambodia's
ASEAN National Secretariat), the ASEAN Department s at the Ministry of Economy and Finance and
the Ministry of Commerce, and the ASEAN Units within other  line  ministries  and  agencies.
The ASEAN agreements acceded to by Cambodia upon its assumption of full membership
are:
(i)  ASEAN Agreement on Customs, 01 March 1997
(ii)  Basic Agreement on the ASEAN Industrial Cooperation Scheme, 02 April 1996.
(iii)  Protocol on Dispute Settlement  Mechanism, 20 November 1996.
(iv)  ASEAN Framework Agreement on Intellectual Property Cooperation, 1995.
(v)  ASEAN Framework Agreement on Services, 1995.
(vi)  Framework Agreement on Enhancing ASEAN Economic Cooperation, 1992.
(vii)  Agreement on the Common Effective Preferential Tariff Scheme for the ASEAN Free
Trade Area, 28 January 1992.WT/ACC/KHM/2
Page 95
(viii)  Agreement among the Government of Brunei Durussalam, the Republic of Indonesia,
Malaysia, the Republic of the Philippines, the Republic of Singapore and the
Kingdom of Thailand for the Promotion and Protection of Investment, 1987.
(ix)  Agreement on the Preferential Short-listing of ASEAN Contractors, 1986.
(x)  Agreement on ASEAN Energy Cooperation, 1986.
(xi)  ASEAN Petroleum Security Agreement, 1980.
(xii)  Agreement on the ASEAN Food Security Reserve, 04 October 1979.
(xiii)  Agreement for the Facilitation of Search for Ships in Distress and Rescue of
Survivors of Ship Accidents, 1975.
(xiv)  Agreement for the Facilitation of Search for Aircraft in Distress and Rescue of
Survivors of Aircraft Accidents, 1972.
(xv)  Multilateral Agreement on Commercial Rights on Non-Scheduled Services Among
ASEAN, 1997.
(xvi)  Agreement for the Promotion of Cooperation in Mass and Cultural Activities,1969
(xvii)  Agreement on the establishment of a Fund for ASEAN, 1994
(xviii)  Agreement on the Recognition of Domestic Driving Licenses Issued by ASEAN
Countries,1985
(xix)  Agreement on the Conservation of Nature and Natural Resources, 1985
(xx)  Agreement on the Establishment of the ASEAN Centre for Energy, 1998
(xxi)  Protocol on Notification Procedures, 1998
(xxii)  Framework Agreement on the ASEAN Investment  Area, 1998
(xxiii)  Agreement on the Recognition of Commercial Vehicle Inspection Certificates for
Goods and Public Services Vehicles, 1998
(xxiv)  ASEAN Framework Agreement on the Fac ilitation of Goods in Transit, 1998
(xxv)  ASEAN Framework Agreement on Mutual Recognition Arrangements, 1998
3. Labour markets integration agreements.
Cambodia has not yet entered into any labour market integration agreements.
4. Accession to Multilateral Economic Organizations
Cambodia is a member of:
- International Bank for Reconstruction and Development.
- International Monetary Fund.
- Asian Development Bank.
- International Development Association.
- Multilateral Insurance Guarantee Agency.
- United Nation Development Program.
- United Nation Conference on Trade and Development.
- Food and Agriculture Organization.
- International Fund for Agricultural Development.
- International Civil Aviation Organization.
- World Intellectual Property Organization.
- International Standards Organization.
- World Health Organization.
- International Maritime Organization.
- International Telecommunications Union.
- United Nations Educational, Scient ific and Cultural Organization.
- World Tourism Organization.WT/ACC/KHM/2
Page 96
- Economic and Social Commission for Asia and the Pacific.
- Paris Convention for the Protection of Industrial Property Rights.WT/ACC/KHM/2
Page 97
ANNEX 7 B
COMMERCIAL REGISTRATION
KINGDOM OF CAMBODIA
Nation       Religion       King
********
Ministry of Commerce
No. 360 BN>Bkb>snN> Phnom Penh, December 3, 1997
INSTRUCTIONAL CIRCULAR
on Commercial Registration at the Ministry of Commerce
In order to comply with the Commercial Registration Law which has been enacted by the
National Assembly on May 3, 1995, and promulgated through Royal Kram (decree) No. 06595/04
dated June 26, 1995. The Ministry of Commerce is pleased to issue instructions with respect to
registration of Sole Proprietorships (merchants) and Companies as follows:
I. Commercial Activities
"Commercial Activity" means any activity engaged in, or usually engaged in the purchasing,
sales, leasing, production, and services with the goal of earning profits.
"Enterprise" means any form of Entity which conducts commercial activity and is recognized
by the Law.
"Entity" means any natural or legal person.
II. Forms of Commercial Enterprise
The Commercial Enterprises which have been authorized to register at the Ministry of
Commerce are the following forms:
1. Sole Proprietorship,
2. General Partnership,3. Limited Partnership,
4. Private Limited Company,
5. Single Member Private Limited Company,
6. Public Limited Company,
7. Public Institution,8. State Enterprise, and
9. Joint Venture.
- Sole Proprietorship
A Sole Proprietorship is an enterprise which is established and operated by a single natural
person who is the owner of all of its capital. The operator of the Sole Proprietorship shall be called a
Sole Proprietor.WT/ACC/KHM/2
Page 98
The obligations and liabilities incurred in the operation of the Sole Proprietorship are the
obligations and liabilities of the Sole Proprietor and thus are his/her sole and exclusive responsibility.
The Sole Proprietorship is not required to have Articles of Incorporation and Bylaws for its existence.
The Sole Proprietorship which is subject to taxation of its profits shall be registered at the Ministry of
Commerce.
A Sole Proprietor may, at any time, subject to the applicable laws, terminate the operation of
his Sole Proprietorship.
- General Partnership
A General Partnership is a contract between tw o or more entities who agree to conduct any
commercial activity. Each member of the General Partnership shall be known as a Partner or General
Partner. All General Partners must be merchants and the liabilities of Partners with respect to the
Partnership's debts is joint and unlimited on their personal properties. Each General Partner may, at
any time, transfer part or all of his share to other person with a unanimous consent of all GeneralPartners.
Each General Partner is responsible for an arrangement of registration. The name of the
General Partnership shall include the name of one or more of its General Partners. And the words
"General Partnership" shall be placed after or below such name.
The dissolution of the General Partnership may occur by the express will of all General
Partners or by a decision of the court in accordance with the provisions of applicable laws of the
Kingdom of Cambodia.
- Limited Partnership
A Limited Partnership is a contract between two or more entities who agree to conduct any
commercial activity. There shall be two types of members in Limited Partnership, the first type shall
be known as a General Partner and the second type shall known as a Limited Partner.
A General Partner shall be a merchant and his/her liability with respect to the Partnership's
debts is joint and unlimited on his/her personal property. The General Partner has the rights to
participate in the management and control of the Partnership's business. A Limited Partner is liable for
the Partnership's debts only to the amount of capital he/she contributed and he/she is not considered
having the rights to participate in the management and control of the Partnership's business.
Every Limited Partnership is subject to commercial registration requirement, and this shall be
done at the Ministry of Commerce.
The name of the Limited Partnership shall include the name of at least one of its General Partners, and
the words "Limited Partnership" shall be placed after or below such name.
The dissolution of a Limited Partnership may occur by the express will of all General Partners
or by a decision of the court in accordance with the provisions of applicable laws of the Kingdom of
Cambodia.
- Private Limited Company
A Private Limited Company is a contract betwee n two or more entities who agree to conduct
any commercial activity. Such company may not have more than 30 shareholders. The shareholders
who jointly own one share in the Private Limited Company shall be considered as one shareholder.WT/ACC/KHM/2
Page 99
Any person can be a shareholder in the Private Limited Company and the liability of
shareholders with respect to the Company's obligations  is limited to the shares they contributed in the
Private Limited Company.
The Private Limited Company shall be under the management and control of one or more
directors who are shareholders or other third parties.
Each shareholder may, at any time, transfer part  or all of his/her share to another shareholder
in the Private Limited Company or to his/her family member, other persons, or a group of persons,
who have kinship and financial interest in the Pr ivate Limited Company. However, the shareholder
shall not offer to sell his/her share to the general public.
Every transfer of share in the Private Limited Company shall be made in accordance with the
Articles of Incorporation and Bylaws of the Private Limited Company.
Every Private Limited Company is subject to commercial registration requirement, and this
shall be done at the Ministry of Commerce. The words "Private Limited Company" shall be placed
after or below the name of the Private Limited Company.
The dissolution of the Private Limited Company may occur by the express will of all
shareholders or by a decision of the court in accordance with the provisions of applicable laws of theKingdom of Cambodia.
- Single Member Private Limited Company
A Single Member Private Limited Company is a form of enterprise established by a unilateral
will of a natural person known as a Single Proprietor. Such enterprise may also be formed by a
dissolution of a Private Limited Company in which all of its shares have been collected by any one
shareholder.
A Single Member Private Limited Company is a particular form of Private Limited Company
containing only one shareholder. The liability of such shareholder with respect to the obligations and
debts of a Single Member Private Limited Company is limited only to his/her capital in the SingleMember Private Limited Company.
A shareholder of a Single Member Private Limited Company may have a position as director
in the Single Member Private Limited Company. A third party may also be appointed to be a director
of a Single Member Private Limited Company.
A shareholder of a Single Member Private Limited Company may, at any time, transfer part
or all of his/her capital to another person. If all capitals were transferred to one natural person then it
shall be considered having the same characteristics as a Single Member Private Limited Company.
However, if part of its capital was transferred then its existence as a Single Member Private LimitedCompany is no longer exist.
Each Single Member Private Limited Company is subject to commercial registration
requirement, and this shall be done at the Ministry of Commerce.
The words "Single Member Private Limited Company" shall be placed after or below the
name of the Single Member Private Limited Company.WT/ACC/KHM/2
Page 100
The dissolution of the Single Member Private Limited Company may occur by the express
will of the Sole Proprietor or by a decision of the court in accordance with the provisions of
applicable laws of the Kingdom of Cambodia.
- Public Limited Company
A Public Limited Company is a contract betwee n one or more entities who agree to conduct
any commercial activity. A Public Limited Company may have more than 30 shareholders and each
shareholder is liable for the obligations and debts of the Public Limited Company only to the amount
of his/her share in the company. The share certificate and other securities of the Public Limited
Company may be offered to sell to the general public consistent with the provisions of the Law
concerning stock market.
The Public Limited Company shall be under the management and control of a Board of
Directors, containing at least two directors. The di rectors shall be elected among the shareholders or a
third party appointed by the shareholders.
Each Public Limited Company is subject to commercial registration requirement, and this
shall be done at the Ministry of Commerce.
The words "Public Limited Company" shall be placed after or below the name of the Public
Limited Company.
The dissolution of the Public Limited Company may occur by the express will of all
shareholders or by a decision of the court in accordance with the provisions of applicable laws of the
Kingdom of Cambodia.
- Public Enterprise
* Further to Article 2 of the Law Concerning the Common Statute of Public Enterprise:A Public Enterprise is a form of enterprise in which all or most of its capital owned by the
state. The Public Enterprise has its mission to motivate economic and social development, including
to promote values of natural resource and create employment.
* Further to article 3 of the Law Concerning the Common Statute of Public enterprise:A Public Enterprise shall have the following forms:
- Public Commercial Institution,
-S t a t e  C o m p a n y ,
- Joint Venture in which the state is directly or indirectly held more than 51 per cent of
the company's capital or voting powers.
* Further to Article 4 of the Law Concerning the Common Statute of the Public Enterprise:
The Public Enterprise is a legal entity which has its financial autonomy. The Board of
Directors of the Public Enterprise, hereinafter is referred to as a Board of Directors, which is a
supreme management body of the Public Enterprise, and will perform its functions in a exclusivelyautonomous manner. The Board of Directors shall not have more than seven members.WT/ACC/KHM/2
Page 101
Unless the provisions of this law provided otherwise, the management of each Public
Enterprise's businesses shall be conducted in compliance with the principles and procedures of the
Business Organization Law.
- Representative Office-Agent
A Representative Office-Agent is an office which is opened and conducts particular
commercial activity within the Kingdom of Cambodia,  by an enterprise of another foreign country.
The Representative Office-Agent shall be under the management of one or more directors who may
be appointed and removed by the principal enterprise. The Representative Office-Agent may lease a
premise for its office, employ local staff to advertise its products, organize trade faire introducing
model of commercial products at its office or any trade faire site, and a Representative Office-Agentcan conduct commercial relations for the purpose of introducing itself to clients.
The Representative Office-Agent can enter into a contract with a local enterprise in the
Kingdom of Cambodia if the principal enterprise so authorized. However, the Representative
Office-Agent may not purchase, sell, or conduct any services as its usual business or conduct anyoperation engaging in production, or construction within the Kingdom of Cambodia.
The Representative Office-Agent is subject to commercial registration requirement, and this
shall be done at the Ministry of Commerce. The words "Representative Office-Agent" shall be placed
after or before the name of the principal enterprise.
Dissolution of the Representative Office-Agent shall be subject to the decision of the
principal enterprise.
- Branch of a Foreign Company
A Branch is an office which is opened and conducts commercial activity in the Kingdom of
Cambodia by a company of a foreign country. A Branch shall be under the management and control
of one or more directors who may be appointed and removed by the principal enterprise. A branch can
conduct the same activities as the Representative Office-Agent. In addition, the Branch may purchase,
sell, or conduct regular professional services, or other operations engaged in production or
construction in the Kingdom of Cambodia. The liability with respect to losses and debts of a Branch isa joint liability of both the Branch and principal company.
The Branch is subject to commercial registration requirement, and this shall be done at the
Ministry of Commerce. The word "Branch" shall be placed above or before the name of the principal
company.
The Branch may be dissolved by the decision of the principal company.
- Subsidiary
A Subsidiary is a limited company which is formed in the Kingdom of Cambodia and at least
51 per cent of its capital held by a foreign company. The formation, management, rights, and other
obligations of the Subsidiary shall be operated in accordance with the same procedures as provided
for the limited company.
Each Subsidiary is subject to commercial regist ration requirement, and this shall be done at
the Ministry of Commerce. The word "Subsidiary" shall be placed above or before the name of such
Subsidiary.WT/ACC/KHM/2
Page 102
The dissolution of the Subsidiary shall occur in the same procedure as provided for the
limited company.
III.  Formality for Registration of Sole Proprietorship
A Sole Proprietorship, which is formed and subject to taxation of its profit, is required to
register. The Sole Proprietor or proxy is liable for filing and registration at any provincial-municipal
trade divisions or at the Legal Affair  Division of the Ministry of Commerce.
The documents required to present to the Registrar shall include:1. Registration Application Form 2 copies
2. Copy of Licence Certificate, if any 2 copies
3. Copy of identification card or Passport 2 copies
4. Photo 4 x 6 cm 2 copies
5. Copy of residence title of enterprise location or
        lease agreement of enterprise location 2 copies
A Sole Proprietor must present the registrar his/her original identification card or passport.
When the specified documents were sufficient the registrars of provincial-municipal trade divisions or
at the Ministry of Commerce shall enroll the Sole Proprietorship in the commercial register and notify
the applicant within one month from the date of receiving such documents.
Any Sole Proprietorship which is formed and engaged in activity for earning profit, but failed
to register, it shall be deemed conducting illegal ac tivity and this will cause the Sole Proprietor to be
liable for the penalties according to Articles 39 to 45 of the Commercial Registration Law.
IV. Formalities for Limited Company Registration
1. Drafting of Articles of Association and Statement of Conformity
Memorandum and Articles of Associations:
The Memorandum and Articles of Association is a contract of Limited Company. This is a
necessary written contract which safeguard the rules concerning the functioning and mutual
obligations which have been agreed upon among the shareholders.
The Memorandum and Articles of Association shall be prepared base on the form of each
company and consistent with the rules of applicable laws. The Memorandum and Articles of
Association shall be made in multiple original copies as required, and at least four of original copies
(1 copy filing at the registered office of a company, 2 copies filing at the Legal Affairs Division of the
Ministry of Commerce, and another copy for stamp).
On each page of Memorandum and Articles of Association shall be paginated and with
initials of all shareholders or at least the initials of the founding shareholders or all directors (for a
Public Limited Company). A mention " Having read and agreed" must be included at the end of the
Memorandum and Articles of Association together with the signatures and handwritten names of all
shareholders or at least the signatures and handwritten names of all founding shareholders or directors(for a Public Limited Company). The location, date, and recording number of Memorandum and
Articles of Association shall be included herewith.
The Memorandum and Articles of Association must include:WT/ACC/KHM/2
Page 103
A Name of the Company: Such name must be in Khmer language and be placed above and in
bigger size than other languages, if any. The translation of a meaning
of the name from one language to another is prohibited.
Khmer language must be used on all letters, documents, and a company's seal used on all
marks authorized by the company in the Kingdom of Cambodia and public advertisements displayed
along the road or on land, water, and in the air in the Kingdom of Cambodia. Any use of second
language with Khmer one must comply with the abov e provisions of this section A. The form of the
company, date, registration number, and the place of registration must be stated and placed after or
below the name of the company.
B. Address of its original registered office which located in the Kingdom of Cambodia together
with the address and name of applicant. The applicant must be a natural person who is or over 18
years of age and is legally competent.
C. Business objectives of the company. Such objectives may contain several types of lawful
business, provided that such commercial purpose is not inconsistent with or prohibited by the
provisions of any laws.
Even though the Memorandum and Articles of Asso ciation stated any specific objectives, the
company must have prior authorization from the Ministry of Commerce or institution governing thatbusiness before operating such transactions.
D. Stated capital of the company. The stated capital shall be calculated in national currency. The
Memorandum and Articles of Association must state the total amount of capital and the total of shares
the company issued and price of each par value share. The company must deposit at least 25 per centof its stated capital, upon registration, in any (authorized) bank in the Kingdom of Cambodia.
The Limited Company shall be deemed to be of Khmer nationality if:1. Its stated office of origin located in the Kingdom of Cambodia,
2. More than 51 per cent of its stated capital is held by a Khmer citizen, and
3. More than 51 per cent of its financial interests in the profits and losses are held by a
Khmer citizen.
Part or all of financial interests of the shareholder in the Limited Company may be, at any
time, transferred to other shareholder or third party.
E. Name, occupation, nationality, mailing address, or residence of each shareholder. Limit of
liabilities of each shareholder with respect to the company's obligations and debts. Each director and
shareholder must provide the company a current address, phone or fax number for keeping on file.
Failure to do so, such director or shareholder cannot make any claim against the company if he/she
did not receive any notice from the company.
F. A description about the rights of the founding shareholder, director, or officials, and
management procedures. The Limited Company shall be under the management and control of one or
more directors.  Both of the natural person of Khmer nationality and foreigner who have a residence
in the Kingdom of Cambodia can serve as a director  or chairman of the Board of Directors without
any restriction to number of company.WT/ACC/KHM/2
Page 104
The director or chairman of the Board of Directors shall be elected among the shareholders or
any other third party. At least 30 per cent of the directors in the Board of Directors must be Khmer
nationality.
- Statement of Conformity
A Statement of Conformity is a statement made by all shareholders of a Limited Company
claiming that the company has properly complied with the formation procedure and other
requirements under the provisions of the law.
The Statement of Conformity shall be drafted and served as a supplementary document to
other files required when applying for a registration.
Such Statement shall be made, at least three copies, signed by all shareholders (and shall be
signed by all directors who are not shareholders, if any). One copy of the Statement of Conformity
shall be kept on file at the company's office and other two shall be attached to the registration
application form.
If necessary, a shareholder may assign his/her rights to another shareholder to be a proxy in
order to sign such Statement on behalf of him/her. A shareholder may have the right to sign for only
another one shareholder.
If the Statement of Conformity was not attached herewith, the registration application form
will not be acceptable. This shall deprive the company from having legal personality and thus it may
not operate such business.
The Statement of Conformity shall be renewed if an amendment was made to the Articles of
Association, but such new statement shall be deemed  complete when one of the directors has signed
it.
2. Publication of Memorandum and Articles of Association
The publication of the Memorandum and Articles of Association shall be made by a notary, a
director, or proxy of the company.
There are two ways of publication as the following:- Publication in the Newspaper, and
- Publication by filing with the Ministry of Commerce.
A. Publication in the Newspaper
A director, shareholder, or proxy, who received an actual mandate, shall prepare an
application for publication in a newspaper which is recognized by the state. The application shall besigned by such a director, shareholder, or proxy.
Contents to be publicized in the newspaper shall include:
- Name of the company (and abbreviation, if any),
- Form of the company,- Summary of business objectives,
- Office address,
- Term of the company,
- Total capital in cash: …………per share: ……… Par value of share: ……….WT/ACC/KHM/2
Page 105
If the company has both cash and in kind capitals, it must specify:
- Total capital in cash: ……………….
- Total of in-kind capital estimated in cash: ………….
(and a brief description of
such n-kind capital)
- Name and family name, occupation, nationality, address of a director (and name
and family name, occupation, nationality, and address of an auditor, if any)
- The location where the company to be registered.
The confirmed approval of the newspaper and application document shall be kept on file (at
lease two copies) to serve as supplementary file when applying for registration.
B. Publication by filing with the Ministry of Commerce
All letters and documents related to the format ion of the company shall be filed with the
Legal Affairs Division of the Ministry of Commerce upon the registration.
The letters/documents to be presented to the Registrar at the Ministry of Commerce shall
include the following:
1. Registration Application Form 2 copies
2. Memorandum and Articles of Association 2     -
3. Statement of Conformity 2     -
4. Application for Publication in the Newspaper 2     -
5. Copies of identification card or passport of directors     and shareholders 2 pcs each
6. Photos (4cm x 6cm) of directors and shareholders 2      -
7. Declaration of non-guilty of directors 2 copies
8. Decision of share contribution (if a natural person
    participated) 2     -
9. * If the office located in the residence of any shareholder,
    the company shall provide:
    Certificate of estate title (title of residence) 2    -
    * If the office located in a hotel for a period of less than one
    year, the company shall provide:    Certificate of lease agreement (issued by the hotel owner) 2    -
3.  Registration to the Commercial Register
The required documents shall be filed, when applying for registration, by a director or
shareholder. The director or shareholder responsible for registration is required to present his/her
identification card or passport to the registrar at the Ministry of Commerce.
When the specified documents were complete a registrar of provincial-municipal trade
divisions or at the Ministry of Commerce shall en rol the company in the commercial register and
notify the applicant within one month from a date of receiving such documents.
The company has a legal personality and may conduct its commercial activities when it has
been registered.WT/ACC/KHM/2
Page 106
Any company which is formed, conducting activity in the purpose of earning profit, but failed
to meet the registration requirement, shall be considered conducting illegal activity and this will cause
its managers to be liable for the penalties ac cording to Articles 39 to 45 of the Commercial
Registration Law.
4. Amendment of the Memorandum and Articles and Dissolutiona) Amendment of the Memorandum and Articles
During the course of conducting business the company may, at nay time, amend its
Memorandum and Articles of Association. Usually, such amendment may be made with respect to:Change of company's name; increase, decrease or change of business objectives; change the registered
office; removal or nomination of directors; transfer of share; increase or decrease its capital; change
the quorum or majority vote at the general meeting etc.
b) Cessation of Doing Business and Dissolution
The company may cease its business, if it considers necessary. It may also resume such
business when it has appropriate capacity to do so.
c) Every amendment to the Memorandum and Articles of Association, cessation, and dissolution
shall be decided by the decision of the general meeting of the shareholders. The Board of Directors,
with a majority of directors, may call the meeting of the shareholders. Otherwise, the votes of
shareholders representing a majority in the capital have the rights to call and conduct a meeting of
shareholders.
A written notice of meeting of shareholders shall be delivered to each shareholder entitled to
vote at least twenty (20) days prior to the meeting and a draft proposal for amendment, cessation or
dissolution must be enclosed to such notice.
The quorum of the shareholders' meeting is subject to the presence of the shareholders
representing at least more than half  (1/2) of voting power of shareholders in the total capital of the
company. The votes of attending shareholders who represent a majority (51 per cent + 1) of thecompany's capital shall decide all matters in this meeting.
In case the first meeting does not have enough votes for a quorum to hold the meeting as
provided above, at least fifteen (15) days later th e second meeting shall be called. The quorum of the
second meeting shall require at least one-third of the voting powers of all attending shareholders. Thevotes of attending shareholders who represent a majority (51 per cent + 1) of the company's capital
shall decide (all matters?) in the second meeting.
* All documents concerning amendment, cessation of doing business, and dissolution must be
specified the dates and important matters to be decided in the meeting.Every amendment, cessation of doing business, and dissolution must be publicized and all documents
and decisions of amendment related to the facts previously listed in the commercial registry shall be
filed.
* The company is subject to file its annual report at the Ministry of Commerce at the end of
each fiscal year. If the company failed to do so, th e registrar shall notify the company to file such
report within the period of no longer than sixty (60) days from the date of notification. In case of
ignorance or delay to so file within the prescr ibed duration, the (manager) of the company will be
responsible for the fine penalty according to the case decided by the Ministry of Commerce.WT/ACC/KHM/2
Page 107
5.  Penalties
Failure to comply with the formation, publication, filing, and registration procedures specified
above will cause a nullification by a cancellation such commercial company from the commercial
registry and its manager shall be sued to the court in accordance with Articles 39 through 45 of the
Commercial Registration Law.
V.  Post-Company Creation Formalities
The company has full legal personality to conduct its business, after it has been registered.
However, before the opening of its office and operation of particular activities dealing with industrial,
handicrafts, publication, construction, mining, health, tourism, hotel, and restaurant etc. the company
must have a prior and official permission from the competent ministry or institution governing such
business.
VI. Final Provisions
This instructional circular is enforceable and effective from the date of signature.In order to achieve a high efficiency, the General Directions and Legal Affairs Division have
the obligations to enforce and promote an application of this instructional circular in a diligent
manner.
In the spirit of cooperation, all General Directions and Divisions under the Ministry of
Commerce shall enforce this circular in a high consideration.
Minister
Signature and seal
      CHAM Prasidh
CC:
- The General Secretariat of the National Assembly
- The Council of Ministers- The Cambodian Development Council
- All Ministries and Departments of the State
- All Provincial and Municipal Offices
- As stipulated in the Final Provisions
- Chorine fileWT/ACC/KHM/2
Page 108
KINGDOM OF CAMBODIA
Nation       Religion       King
********
Ministry of Commerce
No. 3289 BN>Bkb>kn> Phnom Penh, December 3, 1997
ANNOUNCEMENT
ON
COMMERCIAL REGISTRATION
**************
THE MINISTRY OF COMMERCE
is pleased to inform the general public and all merchants that:
I. A Commercial Enterprise which is authorized to register in the commercial registry shall
include:
1. Sole Proprietorship,
2. General Partnership,
3. Limited Partnership,
4. Private Limited Company,
5. Single Member Private Limited Company,6. Public Limited Company,
7. Public Institution,
8. State Enterprise, and
9. Joint Venture.
II. Formality for Commercial Registration:
1. Formality for Registration of Sole Proprietorship (merchants)
A Sole Proprietor (merchant) who owns all capital in the Sole Proprietorship or a proxy
(assignee) must come to complete a form for regi stration at the provincial-municipal trade divisions or
at the Legal Affairs Division of the Ministry of Commerce. The Sole Proprietor must present his/heridentification card or passport to the registrar. In the case an applicant is a proxy, he/she must present
his/her identification card or passport and a letter of attorney which the assignor authorized him to be
a proxy.
Documents to be submitted for the registration may include:1. Registration Application Form 2 copies
2. Copy of Licence Certificate, if any 2     -
3. Copy of identification card or passport 2     -
4. Photo 4cm x 6 cm 2     -5. Copy of residence title of enterprise location or
lease agreement of enterprise location 2     -WT/ACC/KHM/2
Page 109
2. Formality for Registration of a Company
A director or shareholder of a company must come to complete a registration form, in person,
at the Legal Affairs Division of the Ministry of Commerce.
The director or shareholder responsible for such registration must present the registrar his/her
identification card or passport. Such director or shareholder must come to sign, in person, in front of
an official at the Legal Affairs Division, confirming that all documents to be filed are correct,
complete, and no false representation.
If the ambiguity was found in any letter or document, the director of the Legal Affair Division
shall invite the chairman of the Board of Director or any director to make a clarification and suchambiguity shall be settled case by case.
Documents to be submitted for registration may include:1. Registration Application Form 2 copies
2. Memorandum and Articles of Association 2     -
3. Statement of Conformity 2     -
4. Application for Publication in the Newspaper 2     -
5. Copies of identification card or passport of directors
     shareholders 2 pcs each6. Photos (4cm x 6cm) of directors and shareholders 2      -
7. Declaration non-guilty of director 2 copies
8. Decision of share contribution (if a natural person
    participated) 2     -
9. * If the office located in a residence of any shareholder,    the company is required to provide:
10.   Certificate of estate title (title of residence) 2    -
    * If the office located in a leased premise the company
    is required to provide:
     Lease agreement 2 copies
11.    * If the office located in a hotel for a period of less than
one year, the company is required to provide:
12.    Certificate of lease agreement (issued by the hotel owner) 2    -
3. Formality for Registration of a Public Enterprise:
A director or shareholder of a company must come to complete a registration form, in person,
at the Legal Affairs Division of the Ministry of Commerce.
The director or shareholder responsible for such registration must present the Registrar his/her
identification card or passport. Such director or shareholder must come to sign, in person, in front of
an official at the Legal Affairs Division, confirming that all documents to be filed are correct,complete, and no false representation.
If the ambiguity was found in any letter or document, the director of the Legal Affairs
Division shall call the chairman of the Board of Director or any director to clarify and such ambiguity
shall be settled case by case.
Documents to be submitted for registration may include:1. Registration Application Form 2 copiesWT/ACC/KHM/2
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2. Memorandum and Articles of Association 2     -
3. Statement of Conformity 2     -
4. Application for Publication in the Newspaper 2     -
5. Copy of identification card or passport of directors
    and shareholders 2 pcs each6. Photos (4cm x 6cm) of directors and shareholders 2      -
7. Declaration of non-guilty of director 2 copies
8. * If the office located in the residence of any shareholder,
    the company is required to provide:
    Certificate of estate title (title of residence) 2    -
    * If the office located in leased premise, the company is
    required to provide:    Lease agreement 2    -
    * If the office located in a hotel for a period of less than one
    year, the company is required to provide:
    Certificate of lease agreement (issued by the hotel owner) 2    -
4. Formality for Registration of Representative Office-Agent and Branch of Foreign Company
A director of a Representative Office-Agent, a Branch, or proxy must come to complete a
registration form, in person, for its office in the Kingdom of Cambodia at the Legal Affairs Division
of the Ministry of Commerce.
The director or proxy who is responsible for such registration must present the Registrar
his/her identification card or passport. Such director or shareholder must come to sign, in person, in
front of  an official at the Legal Affairs Division, confirming that all documents to be filed are correct,
complete, and no false representation.
If the ambiguity was found in any letter or document, the director of the Legal Affairs
Division shall invite the chairman of the Board of Director or any director to clarify and such
ambiguity shall be settled case by case.
Documents to be submitted for registration may include:
1. Registration Application Form 2 copies
2. Memorandum and Articles of Association of a principal
    company "with a legally valid certificate" 2     -
3. Copy of Certificate of registration of a principal
    company "with a legally valid certificate" 2     -4. Letter nominating a director/agent of a Representative
    Office-Agent or Branch 2     -
5. Copies of identification card or passport of directors
    or agent 2 pcs each
6. Photos (4cm x 6cm) of directors or agent 2      -7. * If the office located in a residence of a director, agent
    such office or branch is required to provide:
    Certificate of estate title (title of residence) 2    -
   * If the office located in leased premise, such office or
    Branch is required to provide:    Lease agreement 2   -WT/ACC/KHM/2
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* If the office located in a hotel for a period of less than one
    year, such office or branch is required to provide:
    Certificate of lease agreement (issued by the hotel owner) 2    -
Minister
Signature and Seal
              CHAM PrasidhWT/ACC/KHM/2
Page 112
ANNEX 8
IMPORT AND EXPORT LICENSES, CERTIFICATES
OF ORIGIN AND REGISTRATION OF TRADE MARKS
KINGDOM OF CAMBODIA
NATION - RELIGION - KING
Ministry of commerce
N 2211
VI. ANNOUNCEMENT
In order to effectively implement the seculartion N 339 dated 29 December 1998 of the
Ministry of commerce, the Ministry of Comm erce hereby. Issue the following instruction:
I. Application for Import, Export licenses.1. The Required Documents:
- Application form (except, round log, sawn timber and restricted goods)
 - Commercial contract with foreign company or commercial invoice.
2. Licence
- Division of Import, Export affairs, responsible for issuing licence to the commercial
companies after completely review all document required.
- For any approval in principle importer permit to apply for licence several time but it
will be unvalited after 12 month.
3. Validity of a licence
- For import licence the validity is 3 months. However, Its allowed to extend for
another 2 months in the case of second extending validity licence is required.
It shall be subject to the authorization of the Minister of Commerce with the reasonable
reason
- For export licence, the validity is 2 months, however, it's allowed to extend for
another 45 days. In the case of second extending validity of licence is required it shall be
subjected to the authorization of the Minister of Commerce with the reasonable reason.
  - There are two categories of licence extending validity requirement.
a. Unused Licence
-The company shall attach 4 copies of licence include 3copies of originalcopy and 1 copy of duplicate copy
b. Using Licence
 -The company shall attach the written declaration on the back sheet of
licence of the custom officer at the crossing border checking point or at
custom head quarter.
4. Licence fee
Licence fee is 15.000 Riels (Cambodian currency) new licenceWT/ACC/KHM/2
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A. II. A PPLICATION FOR CERTIFICATE OF ORIGIN
1. Documents required for registration
   - Application form (1copy)
    - Registration form   (1 copy )
    - Approval declaration of Cambodian development Council (CDC) or
 Registered Certificate is issued by the Ministry of Commerce (1 copy)
 - Approval declaration of Ministry of Industry (1copy)
 - List of Raw material and Machinery (1 copy)
- Map of location of industry- Products design with a strip of cloth
- Copy of passport, or I.O card and Photo
2. Document Required for issuing C.O
 - Application form
 - Certificate of production of Ministry of industry
 - Commercial invoice
 - Merchandise manifest
 - Commercial contract
3. Certificate of Origin fees - There are two categories of certificate of origin
 - 30 USD for C/O normal form - 50 USD for C/O form A
III. Registration of Trade Mark
1. Document Requirement
    - Application form
 - Letter of power attorney to agent of lawyer or notary public or representative for
registration Trade Mark or Service Mark in the Kingdom of Cambodia
- 15 specimens of Mark
- Mark 5
After a complete review of the required documents, the Division of Trade Mark of theMinistry of Commerce issues Certificate of Acknowledgement and Registration of
Trade Mark or Service Mark
2. Trade Mark  Processing  fees :
- 50 USD for registration fee for each certificate
- 50 USD for publication fee
IV. Commercial Registration and Company
The trading company which have been authorized to register at the Ministry of Commerce are
the following form":
a. Sole Proprietorship,WT/ACC/KHM/2
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b. General Partnership,
c. Limited Partnership,
d. Private Limited Company,
e. Single Member Private Limited Company,
f. Public Limited Company,g. Public Institution,
h. State Enterprise, and
i. Joint Venture.
2. Documents to be submitted for registration may include:
a. Registration Application Form 2 copies
b. Memorandum and Articles of Association 2
c. Statement of Conformity 2     -
d. Application for Publication in the Newspaper 2     -
e. Copies of identification card or passport of directors
    shareholders 2 pcs eachf. Photos (4cm x 6cm) of directors and shareholders 2      -
g. Declaration non-guilty of director 2 copies
h. Decision of share contribution (if a natural person
    participated) 2     -
i. * If the office located in a residence of any shareholder,
    the company is required to provide:
    Certificate of estate title (title of residence) 2    -    * If the office located in a leased premise the company
    is required to provide:
     Lease agreement 2 copies    * If the office located in a hotel for a period of less than
    one year, the company is required to provide:
    Certificate of lease agreement (issued by the hotel owner) 2   -
j. Certificate of Deposit capital in the authorized bank
The required documents shall be filed when applying
for registration by director or shareholder. The
director or shareholder responsible for registration isrequired to present his/her identification card or
passport to the registrar at the Ministry of Commerce
3. Registration fees is 260,000 Riels (Cambodian currency)
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