Cambodia is a growing market for import and export business. Most Cambodians live in rural areas where lack of education and local markets make living costs expensive. This leads to a large number of Cambodians looking for work abroad. Most Cambodians are farmers and while most have some goods to sell, they still have to make a profit to be able to afford the cost of living in Cambodia. Most of these goods are sold to neighbors and friends or local markets. Most export and import businesses in Cambodia are recruiting Cambodians with experience in selling their goods to send them abroad to countries where they are willing to pay.
Before starting an export and import business in Cambodia, you have to know the procedure, and other requirements beforehand, so you won’t have to obsess with it once your business has begun.
1. Registration
Both importers and exporters initial ought to register with Cambodia’s Department of Business Registration, under the Ministry of Commerce. Cambodia uses the automatic System for Customs data (ASYCUDA) created the global organization Conference on Trade and Development (UNCTAD). To register with ASYCUDA, importers and exporters need a TIN (Taxpayer identification Number). Importers and exporters should register with the general Department of Taxation, under the Ministry of Economy and Finance to get a TIN. Those who are operating out of Special Economic Zone (SEZs) must apply with the Free Zone Management Department of the General Department of Customs and Excise
2. Required documents
Importers:
Businesses importing must provide the documents below when their goods arrive at one place:
- Customs Import Declaration;
- Commercial Invoice;
- Packing List;
- Road Transport Document (if arriving by land);
- Bill of Lading (if arriving by sea);
- Import Permit;
- Insurance Certificate;
- Tax Certificate;
- Certificate of Origin; and
- Company Registration.
Exporters
Businesses exporting out of Cambodia must provide documents below before their goods depart to other places
- Customs Export Declaration;
- Commercial Invoice;
- Packing List;
- Road Transport Document (if departing by land);
- Bill of Lading (if departing by sea);
- Terminal Handling Receipts (if departing by sea);
- Insurance Certificate;
- Export Permit;
- Certificate of Origin.
For goods in transit
The following document are really important for transiting goods through Cambodia:
- Commercial Invoice;
- Packing list;
- Certificate of Insurance; and
- Certificate of Origin.
3. Tariffs and Taxes
Cambodia follows the 8-digit HS code (Harmonized System Code) underneath WCO (the World Customs Organization.
Importers
Cambodia applies tariff rates between 0% to 35%. Typically, primary goods and raw materials incur a tariff rate of 7%; capital goods and domestically raw materials a tariff rate of 15% and; finished goods as alcohol, petroleum, vehicles, and precious metals a tariff rate of 35%. Cambodia charges a flat 10% of tax (VAT) on all foreign product. Cambodia also charges a special tax on importing products.
Exporters
Cambodia charge an export tax on goods exporting the country range from 0% to 50%. For SEZs can export and import raw materials and product equipment are exempt from tax.
How to start an export and import business in Cambodia?