Certain articles can be temporarily imported to be reexported and are exempt from import duties and taxes. The importers are required to pledge that such articles will be reexported within the specified period and provide a guarantee which is refunded after all the obligations under the pledge have been fulfilled. Approval for duty exemption of materials for inward processing is granted by the Cambodia Investment Board that operates under the CDC and is approved by the Ministry of Economy and Finance (MEF). The Ministry of Industry Mines and Energy (MIME) 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.

In addition t here is a joint Committee comprised of representatives of the MEF, CDC, Customs and Tax Department, MIME and Ministry of Commerce (MOC) to verify that all temporarily imported materials have been satisfactorily accounted for by manufacture into exported products.

There are no import/export processing zones; CDC approved firms have duty-free privileges but they are not confined to a zone. Investment firms approved by CDC import capital goods for manufacturing purposes and material inputs for processing. About 90% of exports are garments manufactured by such firms, while about half of the total value of imports are their imports. Discussions have been underway for some years to establish a processing zone at the Thai border.