Additional Incentives to Investors in SEZ

   Reference Regulations

  • Sub-degree No. 111.ANK.BK dated 27 September 2005, on the implementation of Law on amendment of law on investment of Cambodia
  • Sub-degree No. 148.ANK.BK dated 29 December 2005, on the Establishment and Management of Special Economic Zone
  • Letter No. 3841.MEF dated 02 July 2009, Ministry of Economy and Finance, on value added tax exemption for investors in Special Economic Zone
  • Letter No. 3725.MEF dated 17 June 2010, Ministry of Economy and Finance, on continuation of value added tax suspension for investors in Special Economic zone until new decision
  • Letter 758 GDCE dated 04 June 2015 implementation Special Tax on import of production inputs of Export Qualified Investment Project (QIP) and Supporting Industry QIP

Customs duties exemption on import of production equipment, construction materials and production inputs shall be approved for the Zone Investors according to the proposal and in compliance with the law in force. The zone investor shall prepare a list of production equipment, construction materials and Production Inputs to be imported and submit it to the Special Economic Zone Administration for approval. Subsequently, the Special Economic Zone Administration only reports its decision to the Cambodian Special Economic Zones Board and relevant institutions for information.

Eligible fiscal incentives for the Zone Investor shall be specified in the Final Registration Certificate to be issued to the Zone Investor in accordance with the Law and Sub-Decree on the Implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia in force.

a. Customs duties Exemption: similar to point Qualified Investment Project on customs duties exemption.

b. Tax Exemption:

     Domestic Qualified Investment Project

  • Value Added Tax on imported production equipment and construction materials are exempted (letter No 3841 MEF dated 2 July 2009 and Letter No. 3725.MEF dated 17 June 2010)

     Export Qualified Investment Project

  • Value Added Tax on imported production equipment, construction materials and production inputs are exempted (letter No 3841 MEF dated 2 July 2009 and Letter No. 3725.MEF dated 17 June 2010)
  • Special Tax on imported production inputs are exempted (Letter 758 GDCE dated 04 June 2015)

     Supporting Industry Qualified Investment Project

  • Value Added Tax on imported production equipment, construction materials and production inputs are exempted (letter No 3841 MEF dated 2 July 2009 and Letter No. 3725.MEF dated 17 June 2010)
  • Special Tax on imported production inputs are exempted (Letter 758 GDCE dated 04 June 2015)

Import Procedures

a. For SEZ located near the official checkpoint or between twenty (20) kilometers from inland or coastal border of Customs Zone

Reference Regulations

  • Prakas No. 734.MEF dated 11 September 2008 on special Customs Procedures Implemented in the Special Economic Zone
  • Letter 1358 GDCE dated 23 December 2013 on additional trade facilitation to investors in SEZ
  1. At Official Checkpoint
  • Competent customs officer to SEZ shall consider and propose to GDCE for determining the seamless route to transport goods in-out between SEZ and official Checkpoint.
  • Importers only show and provide a copy of documents including invoice/Packing list, transport documents and other documents mentioned the information of goods in transit from checkpoint to SEZ.
  1. At SEZ
  • The investors shall submit documents related to goods in transit which are mentioned above to the competent customs officer.
  • The competent customs officer shall preliminarily verify the identification of involved staff, mean of transport and related documents then allow the goods enter the Zone Investor or other Areas of SEZ in case Investors do not have a proper place to store their goods.
  • The importers can unload their goods for using or processing according to their need without the presence of Customs officer in accordance with a policy of Trade Facilitation through Risk Management, except a special request from those officers who have permission from the representative of GDCE to SEZ.
  • As soon as unloading their goods, importers shall lodge Customs declaration in ASYCUDA as mentioned in point 2.1.1 by clearly describe each item whether or not being stated in the master list approved by SEZ Administration or Cambodian Special Economic Zone Board.
  • The competent customs officer shall manage to verify all items declared above with Master List. Zone Investor can request to the representative of GDCE to SEZ for advance clearance importation of goods which are not in the Master List but under incentive scheme in accordance with Sub-Decree No. 148 ANKr.BK above. Other Items which are not under incentive scheme are subject to implementation of normal customs procedures especially related to duties and taxes and other restrictions.

b. For SEZ not located near the official checkpoint or between twenty (20) kilometers from inland or coastal border of Customs Zone Reference Regulations

Reference Regulations

  • Prakas No. 734.MEF dated 11 September 2008, Ministry of Economy and Finance, on special Customs Procedures Implemented in the Special Economic Zone
  • Letter 1358 GDCE dated 23 December 2013, on more facilitation for investors in SEZ
  1. Investor
  • Zone investor shall submit written request to customs at official checkpoint for transportation of goods under national transit procedure from official checkpoint to designated SEZ.
  • Written request for transportation of goods under national transit procedure shall be endorsed by competent customs to SEZ
  1. Customs officers to SEZ
  • Customs officers to SEZ shall endorse (to certify that mentioned investors are located in designated SEZ) on the application for transportation of goods under national transit procedure within two (2) working hours.
  1. Customs officers at official checkpoint
  • Investors submit the application for transportation of goods under national transit procedure endorsed by SEZ customs to competent customs officer at official checkpoint and lodge summary customs declaration attached with supportive documents.
  • Customs officers shall provide the priority in examining and verifying the request and urgently allow the transportation of goods to SEZ by just fixing customs bullet seal and attached with transit documents on mean of transport. At least 3 customs officers at official checkpoint are assigned to facilitate and finalize transit procedure on spot within two (2) working hours in accordance with regulations related to transit procedures in force.
  1. Customs officers to SEZ
  • When transited goods arrive at SEZ, investors and Customs officer shall implement procedures mentioned point A.2 at SEZ above.

Export Procedures  

a. Direct Export from SEZ

   Reference Regulations

  • Prakas No. 734.MEF dated 11 September 2008, Ministry of Economy and Finance, on special Customs Procedures Implemented in the Special Economic Zone
  • Letter 1358 GDCE dated 23 December 2013 on additional trade facilitation to investors in SEZ
  1. Investors
  • Investors lodge export customs declaration in ASYCUDA at SEZ Customs and Excise Office as mentioned in point 2.1.1.
  1. Customs officers to SEZ
  • Customs officers to SEZ verify export customs declaration.
  • If there is no irregularity, competent customs officers shall urgently release goods in order to transport to office of exit by just fixing customs bullet seal and attached with export documents on mean of transport. In case of non-containerized cargo, customs shall arrange investigation
  1. Customs officer at office of exit
  • Competent Customs officers shall urgently examine regularity of transportation mean and related documents without queueing. In case there is no irregularity, customs officer urgently remove customs bullet seal and urgently release goods for export. Customs officer can conduct physical inspection in case there is exact irregularity and written permission from head of customs office of exit in accordance with trade facilitation through risk management.

b. Export from SEZ via Dry Port (Consolidation)

   Reference Regulations

  • Letter No. 653 GDCE dated 02 August 2011, on facilitation of Customs procedures for transporting goods out of Special Economic Zone to dry ports to consolidate into the container with other goods to be exported to foreign countries
  1. Investors
  • Investors submit the application form (3 copies) to competent customs officers to SEZ requesting to transport goods out of the zone to dry port.
  1. Customs officers to SEZ
  • Customs officers to SEZ shall endorse and give permission to transport goods out of the zone by just fixing customs bullet seal and attached with related documents on mean of transport.
  1. Customs officers of Export Branch of Customs and Excise
  • When goods arrive at dry port, owner or representative shall urgently inform competent customs officers of Export Branch of Customs and Excise in order to verify the regularity of seal and mean of transport and certify the arrival of goods.
  • In case there is no irregularity, customs officer remove seal and immediately permit the fulfillment of export customs formalities in ASYCUDA or unloading the goods to warehouse under the responsibility of dry port operator for future Customs formalities, waiting for completion of export customs formalities in accordance with customs procedures in force.
  • When finishing export Customs formalities through ASYCUDA as mentioned in point 2.1.1 Customs officers inspect goods, permit loading the goods into the container and fix bullet seal.

Sales of Goods in SEZ to local market

   Reference Regulations

  • Sub-degree No. 148.ANK.BK dated 29 December 2005,on the Establishment and Management of Special Economic Zone (point 10.5)
  1. Approval from Zone Administration
  • With regard to the sale into the domestic market of the production outputs which are not of proper quality, inferior quality or out-of-date goods and that the Zone Investor cannot export, the Zone Investor shall request for approval from Zone Administration.
  1. Declare to Customs to SEZ
  • All goods which are diverted in the domestic market, in whatever conditions, shall be required to fulfill the same formalities as goods imported into the Kingdom of Cambodia and shall be subject to import duties and other applicable taxes by lodging Customs detail declaration in ASYCUDA mentioned in point Customs Declaration.