Legal Document

KINGDOM OF CAMBODIA

Nation Religion King

Ministry of Economy and Finance

No.   508   MEF. BRK

Phnom Penh, 01 July 2008

PRAKAS

on

Customs Transit

Senior Minister,

Minister of Economy and Finance

-   Having Seen the Constitution of the Kingdom of Cambodia;

-   Having Seen Reach Kram No  NS/RKT/0704/124 dated 15 July 2004 on the Appointment of the Royal Government;

-   Having Seen Reach Kram No  02/NS /94 dated 20 July 1994 promulgating the Law on the Establishment and Organization of the Council of Minister;

-   Having  Seen  Reach  Kram  No   02/NS/RKM/0196/18  Dated  24  January  1996 promulgating the Law on the Establishment of the Ministry of Economy and Finance;

-   Having   Seen   Reach   Kram   No    NS/RKM/0707/017   dated   20   July   2007 promulgating the Law on Customs;

-   Having  Seen  Anukret  No   04  ANKR.BK  dated  20  January  2000  on  the Establishment and Organization of the Ministry of Economy and Finance;

-   Pursuant to the priority task of the Ministry of Economy and Finance

HEREBY DECIDES Praka 1.

The establishment of the customs transit procedure which allows the transport of goods from one customs office to another under customs control with import duties and taxes suspended is authorized in accordance with the provisions of Articles 13 and 25 of the Law on Customs.

Praka 2:

International transit is the transport of cargo from a customs office of entry into the Customs Territory of the Kingdom of Cambodia to a customs office of exit from the Customs Territory and where such transport is a part of a complete journey beginning and terminating beyond the frontier of the Customs Territory.

National transit is the transport of cargo:

-  from the customs office of entry to another customs office or authorized customs clearance premise in the Customs Territory of the Kingdom of      Cambodia

-  from  a  customs  office  or  authorized  customs  clearance  premise  in  the Customs Territory  to a customs office of exit, or

-  from one Customs office or authorized customs clearance premise to another Customs office or authorized customs clearance premise in the Customs Territory.

Praka 3.

Transit cargo and transport vehicles are not subject to customs duties and taxes, but may be subject to charges and other fees related to the costs of processing transit operations as determined by the Ministry of Economy and Finance.

Praka 4.

In order to ensure effective controls on customs transit operations and to facilitate trade, the Director of Customs may establish terms and conditions for transit operations in accordance with the obligations of the Royal Government of Cambodia under relevant international agreements and international standards of best practices.

The terms and conditions to be established by the Director of Customs include:

- Determination of authorized transit operators, including the rights to temporarily  or  permanently  exclude  any  person,  committing  guilty  of  any  offence against customs laws and regulations, from the use of the transit procedures.

- Detailed operational procedures, including documentation requirements, reporting procedures, and other restrictions related to procedures at the office of entry, office  of  exit  and  specifying  strict  route  and  time  limits  under  customs  transit procedures.

-   Customs control procedures and requirements including sealing of transport units or containers.

-   Procedures to be followed in the case of loss or destruction of the transit cargo, damage to the transit seals, tear of customs stamp or any other incident or accident capable of affecting the ability to comply with obligations.

-   Transport vehicle and cargo container security standards.

-   Security guarantee requirements in accordance with the Prakas on Security.

Praka 5.-

Any offences detected in connection with the transit operation shall be dealt with in accordance with the provisions of the Law on Customs and other related existing laws and regulations of the Kingdom of Cambodia.

Praka 6.

Except the case as provided in

Praka 7.

Transit goods shall only be transported in containers as defined in the second paragraph of this Praka, or in transport units approved by customs.

For purposes of this Prakas, container means a transport equipment device that is:

-   a closed compartment intended for containing goods that is capable of being sealed.

-    of a permanent nature and accordingly strong enough to be suitable for repeated use.

-   specially designed to facilitate the carriage of goods by one or more modes of transport, without intermediate unloading and reloading of the goods.

-   designed for ready handling, particularly when being transferred from one mode of transport to another.

-   designed for easy filling and emptying; and

-   to have an internal volume of at least one cubic meter.

An approved transport-unit for customs transit must be so constructed and equipped so that:

-   customs seals can simply and effectively be affixed to it.s

-  no goods can be removed from or introduced into the sealed part of the transport-unit without leaving visible traces of tampering or without breaking the Customs seal.

-   it contains no concealed spaces where goods may be hidden; and

-  all spaces capable of holding goods are readily accessible for Customs inspection.

Customs and Excise Department shall decide whether transport-units and containers are secure for the purposes of Customs transit control.