Cambodia TARIFF AND DUTY RATES
Charles DiBella
Cambodia
TARIFF AND DUTY RATES
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Types of Duty:
1. Import Duty
Import duties are levied on any imported goods before releasing them from the custody of Customs; except for goods receiving specific privilege that qualifies according to the laws and regulations, whereby their duties are exempted.
There are three types of duties and taxes that any importer has to pay before the imported goods are released from the custody of Customs:
- Customs Import Duties with an ad valorem rate;
- Excise Tax for specific category of goods;
- Value Added Tax (VAT)
2. Export Duty
There are four items of exported goods that have to pay taxes:
- Natural rubber
- Uncut (unprocessed) precious stones
- processed wood
- Fish and crustaceans, molluses and other aquatic products
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Rates of Duty
There are five major duty rates (including 0% rate) for imported goods, excluding vehicles which have special rates. These duty rates are as follows:
* Duty rate is 0% for goods that government policy provides not to collect duties.
* Duty rate of 7% for primary products and raw materials.
* Duty rate of 15% for machinery and equipment.
* Duty rate of 35% for finished products and government protected goods.
* Duty rate of 50% for luxurious goods.
There are three rates of taxes to be paid for exported goods:
* Duty rate of 2%, 5% and 10% for natural rubber (Cambodia temporary uses cascade rates for this product).
* Duty rate of 5% and 10% for processed wood (depends on level and type of processing).
* Duty rate of 10% for fish and other aquatic products, and uncut precious stone.
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Payment of Duties and taxes
All duties are levied in accordance with the provisions of Cambodia Law on import and export (1989) and the Regulation on Customs Tariff Nomenclature adopted in 1993. Payment of duties shall be made to Customs Offices prior to the examination of the goods. Duties can be paid either by cash or certified checque.
Where the importer requests clearance of goods subject to a dispute or specific circumstance, such goods can be released either by:
* Paying the maximum rate of duty and reserving the right to settle the dispute at a later time;
* Paying the amount of duty declared together with an additional amount covering the maximum payable duty as a deposit.
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VALUING YOUR PRODUCTS
In valuing any imported/exported goods for duty assessment, Cambodia Customs uses the 1993 amendment to the Law on Import and Export which calls for CIF imports, and FOB exports. If the consignments (for imports) exceed USD 5,000 in FOB value, the pre-shipment inspection is required. However, Customs will have the right to finally determine whether the price stated in Clean Report of Findings corresponds within limits to the market price of the goods. If there is no correspondence, the extent to which the price varies or diverges from the market price has to be determined by Customs. The value used is the notional open market wholesale price of the identical or similar goods (excluding taxes and duties payable), which is akin to the Brussels definition of Value.
Lists of CIF values are compiled by Customs Department from SGS findings, and from catalogues and price lists obtained from abroad. The invoice price of goods below the value of USD 5,000 may be adjusted by Customs to accord with market value. In general, if the invoice of non-PSI goods is lower than the list price, the list price is used. Local Customs offices can accept values of goods which have customs duty and taxes payable up to USD 300, but higher values have to be checked by the Valuation Office at Customs Headquarter.
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CLEARING IMPORTS
Importers or agents authorised by importers must comply with the law on import and export and other customs related regulations. Importers or agents must pay the full amount of duties and taxes or deposited cash security.
Import entry has to be made triplicate, accompanied with supporting documents as follows:
1. Invoice
2. Packing list
3. Bill of lading/airway bill
4. Import license (if required)
5. Report of Finding (ROF) if an import FOB value up from USD5,000.00
6. Other documents (if any)
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CLEARING EXPORTS
All exported commodities can be declared by exporter or his/her agent. They must take responsibility to the accuracy of the detailed information submitted. Customs uses FOB price to determine taxes payable.
Export entry should be made triplicate and be submitted to the Customs Office, accompanied with the following documents:
1. an invoice
2. a packing list or airway bill
3. an export license (if required)
4. other documents (if any)
GOODS WITH PROHIBITIONS, CONTROLS, AND RESTRICTIONS
There are several Ministerial Regulations/Decisions, which involve the prohibitions and restrictions on importation and/or exportation of certain items. Import and export licenses are required for some goods from the Ministry of Commerce. Import and export permits are required from relevant government agencies. Goods with prohibitions, restrictions and controlled include narcotic drugs, medicines, live animal, wood products, fire arm etc.
TEMPORARY ADMISSION
In general, certain articles can be temporarily imported and to be re-exported within certain period as specified by Customs from the date of importation. These articles will be granted exemption from payment of import duty and/or taxes, but the importers may be required to make a contract with Customs that such articles will be re-exported within the fixed period and a guarantee in certain form and amount may be required by Customs. The refund or release of such security given will be carried out after all the obligations under the contract or agreement have been fulfilled.
TEMPORARY ADMISSION FOR INWARD PROCESSING
Approval for duty exemption of materials for inward processing is granted by the Cambodia Investment Board which operates under the Council for the Development of Cambodia (CDC), and approved by the Ministry of Economy and Finance. The Ministry of Industry Mines and Energy issues a processing Certificate which shows an estimated usage rate for the materials. The materials are declared to Customs on arrival, and the finished products are declared on exportation. There is a joint Committee comprised of representatives of the Ministry of Economy and Finance, CDC, Customs and Tax Department to verify that all temporarily imported materials have been satisfactorily accounted for by manufacture into exported products.
In addition there is an Outward Processing Arrangement (OPA) which comprises of representatives of the CDC, Ministry of Economy and Finance, Ministry of Industry, Mines and Energy, Ministry of Commerce, Customs House, and chairman of Garment Manufacturing Association of Cambodia (GMAC), to ensure and monitor this matter.
OBTAINING REFUNDS
Refund of Duty
If there is evidence of errors in duty calculation, importers or exporters may claim for refunds. They should submit written request to the Director of Customs and Excise Department asking for refund the duties and taxes paid in excess on account of calculation errors. The decision to refund of duties is made by the Ministry of Economy and Finance.
DRAWBACK
No drawback system is applicable in Cambodia.
LICENSED/BONDED WAREHOUSE
A licensed/bonded warehouse is a place where imported goods are stored and examined before they are released from customs custody. The warehouse is establish with approval by the Council of Minister and controlled by Cambodia Customs under the guidance of the Ministry of Economy and Finance. The owners of a bonded warehouse are required to conclude contracts/agreements with Customs and Excise Department. They are required to fulfil all technical obligations under which a warehouse can be operated, including making a deposit/guaranty in certain form and amount to Cambodia Customs in order to secure the payment of duties or other dues which may be claimed by Cambodia Customs under the contracts/agreements.
There is no manufacturing bonded warehouse established yet in Cambodia.
CLEARANCE FOR PASSENGER
In order to facilitate the bona fide travelers and tourists, who come into Cambodia accompanied with non-dutiable, non-prohibited and non-restricted goods, the Customs Administration established the Green Lane channel for them. By passing through the Customs counter on the Green Channel, the travelers' belonging will not be checked only if they declare to the Customs that there are no dutiable, prohibited and restricted goods accompanied with them. The Green Channel can be noticed by having the panel with words "NOTHING TO DECLARE" on it.
Travelers or passengers who accompanied dutiable goods with them have to go into the Red Channel and pay duties. The Red Channel is noticed by having the panel with words "GOODS TO DECLARE" on it.
Travelers or passengers accompanied by dutiable, restricted and prohibited goods, and found using the Green Channel shall be imposed by a penalty and/or fined.
Travelers and tourists may bring personal belongings in reasonable amount. Conditions under which travelers and tourists should enjoy concession are stated in Customs Passenger Form which are available at entry checkpoints and/or air carriers.