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Law on Customs Declared by Preah Reach Kram (Royal Decree) No .•.'· . .· . ··r: Preface The establislunent of legal frameworks, organizational structure and the development of human resources are the main factors to improve trade facilitation, investment climate and mutual understanding between customs administration and private sectors. To achieve this and under the guidance of the Ministry of Economy and Finance, the General Department of Customs and Excise of Cambodia (GDCE) has successfully implemented Strategy for Customs Reform and Modernization in accordance with the "Rectangular Strategy" of the Royal Government under the wise leadership of Samdech Akka Moha Sena Padei Techo Hun Sen, Prime Minister of the Royal Government of Cambodia, in which the development of private sectors has been considered to be one of the main objectives contributing to the national economic development. The compilation, update and publication of "Laws and Regulations related to the Establishment and Management of Special Economic Zone" is another important step helping investors to understand existing procedures, to enhance the confidence of the business community as well as to support the implementation of Strategy for Customs Reform and Modernization in order to achieve the vision "to become a modern Customs Administration, leading agency in providing services to improve trade facilitation and to contribute to sustainable and efficient economic development and social protection". · This book is developed under the active participation of competent customs officials of the GDCE with the cooperation of experts from development partners, especially Japan International Cooperation Agency (JICA). I expect that this publication will provide important information to strengthen the awareness of all relevant parties on legal frameworks and improve the efficiency of the GDCE on trade facilitation and management of Special Economic Zone in Cambodia. Minister Delegate Attached to the Prime Minister Director General of the General Department of Customs and Excise Dr.KUNNHEM i ii Message from Chief Representative of Japan International Cooperation Agency (JICA) Cambodia Office My warmest greetings to the officials and staff of the General Department of Customs and Excise (GDCE) for their continued efforts towards reform and modernization, specifically in the areas of revenue collection and trade facilitation. As we all know, the Royal Government of Cambodia has been making significant efforts to improve investment climate for sustainable economic growth of the country, by enhancing productivity and competitiveness, export promotion, and employment generation. Among others, establishment and management of Special Economic Zone (SEZ) are the significant part of its efforts. GECE, as one of the key players of the Royal Government of Cambodia, takes a lead in the management of cargo transportation, manufacturing and export in SEZs. Japan International Cooperation Agency (JICA) has been working jointly with GDCE in its reform and modernization to contribute to further improvement of business environment in Cambodia. As an outcome of such collaborations, I am honored to present this 2nd edition of “Laws and Regulations related to the Establishment and Management of Special Economic Zone” by GDCE. I strongly believe that this updated edition of the relevant laws and regulations will offer more efficient and transparent information on custom procedures in SEZs. Again, I would like to congratulate GDCE for issuance of 2nd edition of “Laws and Regulations related to the Establishment and Management of Special Economic Zone”. I believe that it will bring great benefits to stakeholders of SEZ operation, thereby contributing to economic development in Cambodia. KAMEI Haruko Chief Representative of JICA Cambodia Office iii iv Disclaimer The 2nd edition of the book of "Laws and Regulations Related to the Establishment and Management of Special Economic Zone" is prepared in Khmer and English languages for ease of use and supplementation of some relevant regulations as well. The English translation is intended to facilitate traders who do not know Khmer and who know English, but not for the purpose of interpreting regulations in Khmer. In this regard, the regulations in Khmer shall be considered as official uses. The 2nd edition of the book of "Laws and Regulations Related to the Establishment and Management of Special Economic Zone" may be amended or revised accordingly in accordance with the development of existing legal documents. v vi Table of Contents No Description Page Preface ............................................................................................................................................... i Message from Chief Representative of Japan International Cooperation Agency (JICA) Cambodia Office .............................................................................................................................. iii Disclaimer ......................................................................................................................................... v Table of Contents ........................................................................................................................... vii Laws 1. Law on Investment of the Kingdom of Cambodia declared by Preah Reach Kram (Royal Decree) No. 03/NS 94 dated 05 August 1994 ................................................................. 1 2. Law on Amendment of Law on Investment of the Kingdom of Cambodia declared by Preah Reach Kram (Royal Decree) No. NS/RKM/0303/009 dated 24 March 2003 ........... 12 3. Law on Customs declared by Preah Reach Kram (Royal Decree) No. NS/RKM/0707/017 dated 20 July 2007......................................................................................................................... 25 Sub-Decree 4. Anukret No. 111.ANKr.BK dated 27 September 2005, on The implementation of Law on Amendment of Law on Investment of the Kingdom of Cambodia.......................... 70 5. Anukret No. 148.ANKr.BK dated 29 December 2005, on The establishment and management of Special Economic Zone ................................................................................. 103 6. Anukret No. 28.ANKr.BK dated 14 March 2006, on The amendment of article 4 point 4.1 of Anukret No. 148.ANKr.BK dated 29 December 2005 on the establishment and management of Special Economic Zone ......................................................................... 123 7. Anukret 34. ANKr.BK dated 23 April 2007, on The amendment of the section 1 of Annex 1 of Anukret No.111.ANKr.BK dated 27 September 2005 on The implementation of Law on Amendment of Law on Investment of the Kingdom of Cambodia ................... 126 vii 8. Anukret No. 18.ANKr.BK dated 22 February 2008, on The amendment of Article 4 point 4.1 and 4.3 of Anukret No. 148.ANKr.BK dated 29 December 2005, on The establishment and management of Special Economic Zone ................................................. 128 9. Anukret No. 33.ANKr.BK dated 13 February 2019, on The amendment of Article 15 of Anukret No.111.ANKr.BK dated 27 September 2005 on The implementation of Law on Amendment of Law on Investment of the Kingdom of Cambodia........................ 133 10. Anukret No. 17.ANKr.BK dated 26 February 2020, on Promulgation of the list of prohibited and restricted goods ............................................................................................. 138 Prakas and Letters issued by Ministry of Economy and Finance 11. Letter No. 1735.MEF dated 30 March 2006, on Formalities of the management of imported goods into Cambodia via land transportation by using seaports of neighboring countries of Cambodia under Customs Transit Regime of those countries, which are loaded in containers ............................................................................ 248 12. Prakas No. 105.MF.BrK dated 15 February 2008, on Management of Goods Exempted from Duties and Taxes ............................................................................................................ 250 13. Prakas No. 115.MEF.BrK dated 15 February 2008, on Establishment and Functioning of Customs Brokers ................................................................................................................. 254 14. Prakas No. 116.MEF.BrK dated 15 February 2008, on Customs Bonded Warehouse ........ 263 15. Prakas No. 388.MEF.CED dated 22 May 2008, on Post Clearance Audit by Department of Customs and Excise ............................................................................................................ 273 16. Prakas No. 508.MEF.BrK dated 01 July 2008, on Customs Transit ...................................... 280 17. Prakas No. 652.MEF.BrK dated 27 August 2008, on Power delegation to the delegate of the Royal Government of Cambodia in charge of Director General of Customs and Excise Department related to the management and functioning of Special Economic Zone ........................................................................................................... 285 18. Prakas No. 734.MEF.BrK dated 11 September 2008, on Special Customs Procedures for implementation in Special Economic Zone ..................................................................... 288 viii 19. Prakas No. 928.MEF.BrK dated 02 October 2008, on Temporary importation under the Temporary Admission Procedures ................................................................................. 298 20. Letter No. 3841.MEF dated 02 July 2009, on Value-Added Tax (VAT) exemption for investors in
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