Customs Procedure in Cambodia (Customs Tariff and Duty rate)

1-Duty Rate for Import

Import duties are levied on any imported goods before releasing them from Customs; except goods qualifying for special privilege according to the laws and regulations, whereby their duties and taxes are exempted.
There are three types of duties and taxes that any importer has to pay before the imported goods are released from Customs:

• Customs Import Duties with an ad-valorem rate;
• Special Tax for certain goods;
• Value Added Tax (VAT)

Rates of Customs Import Duty:
Tariff structure was changed in 2001 when the number of tariff bands was reduced from 12 to 4 and the maximum rate dropped from 120% to 35%, thus narrowing the spread. The tariff bands are now:

• 0% for exempt goods such as medical and educational materials (covering 5% of tariff lines).
• 7% for primary products and raw materials.
• 15% for capital goods, machinery and equipment, locally available raw materials.
• 35% for finished products, alcohol, petroleum products, vehicles, precious metals and stones.

Value Added Tax (VAT).
Cambodia applies a 10% flat rate of VAT. All imported goods are subject to the 10% VAT.

2-Duty Rate for Export

There are four items of exported goods subject to taxes:

• - Natural rubber.
• - Uncut (unprocessed) precious stones.
• - Processed wood.
• - Fish and crustaceans, mollusks and other aquatic products.
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There are three categories 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.