NATURE OF TAX

Effective September 16, 1993, a general tariff, based on the Harmonized System of Classification, is levied on all imports. All rates are ad valorem and duties are levied on a cost-insurance-freight (c.i.f.) basis, except for eight major revenue- producing items, for which values for duty purposes are officially fixed in US dollars by the Ministry of Economy and Finance. These items consist of cigarettes (important brands), beer, petroleum products, motor cycles, soft drinks, televisions, video cassette recorders, and radio cassette players. These eight items account for 60 percent of total imports and 78 percent of total import duty collections at present. Examples of official values for duty purposes are as follows:

CIGARETTES:
Marlboro (10,000 sticks)	US$ 254.40
555 (10,000 sticks)	250
BEER:
Heineken (case of 24 cans)	7
Carlsberg (case of 24 cans)	7
PETROLEUM:
Petrol: regular (per metric ton)	200
Diesel: (per metric ton)	200
MOTORCYCLES:
Honda Dream 100	1,021
SOFT DRINKS:
Pepsi Cola	5
TELEVISIONS:
Sony 25"	303
VCR's:
Most brands	185 - 190
RADIO To CASSETTES:
Sony ICF SW-7600	17

The exchange rate applied to import values is the official rate announced by the National Bank of Cambodia (as of October 1994, US$1= 2,603 riels) and import duties are collected in riels.

EXEMPTIONS AND DEDUCTIONS

The following imports are exempt:

(i) Imports for projects and investments approved by the Council for the Development of Cambodia (CDC). The imports to be exempted must be pre-approved.

(ii) Fuel for Royal Air Cambodge (the country's international flag carrier), up to a ceiling of 2,000 tons of aviation spirit.

(iii) Insecticides, pesticides and other agricultural inputs as well as most agricultural machinery (excluding tractors).

(iv) Imports of embassies, international organizations, non-governmental organizations providing humanitarian aid, and projects financed through bilateral grants and aid.

RATES

There are essentially four rate categories: 7 percent for essential consumer goods and basic raw materials, 15 percent for intermediate goods and machinery and equipment, 35 percent for most consumer goods and building materials, and 50 percent for luxury consumer goods, cigarettes and alcoholic beverages.

Rice paddy, rice seeds, tools for agriculture, fertilizers, sports products, education and materials and text books are the very few items subject to rates of duty of zero percent; gold, silver and coins are subject to 0.3 percent; diesel and lubricants are subject to 20 percent; and petrol is subject to 45 percent. Examples of duty rates (along with their tariff numbers in parentheses) are as follows:

7 PERCENT:

(a) unprocessed. vegetables, fruits and nuts (Chapters 7 and 8);

(b) tea (09.02);

(c) cooking oils (Chapter 15);

(d) sugar (17.01);

(d) salt (25.01);

(e) medicines and pharmaceuticals (Chapter 30);

(f) bicycles (87.12).

(g) Chemicals, excluding fertilizers (Chapters 28, 29, 30, 31, 32, and 38);

(h) primary plastic and rubber materials (Chapters 39 and 40);

(i) packaging materials (48.08);

(j) base metal, iron and steel, and coal (Chapters 72, 73, -and 27) ;

(k) and some machinery (Chapter 84).

(a) Wristwatches (91.01 and 91.02)

(a) Wheat (10.01);

(b) unroasted coffee (09.01.11);

(c) toothpaste (33.06);

(d) photographic fihns (37.06);

(e) unmanufactured tobacco (24.01).

(f) Machinery, mechanical appliances, and equipment, including tractors (Chapters 84 and 85, and 87.01);

(g) trucks (87.04);

(h) many industrial mineral products (Chapter 25);

(i) and yarns of various kinds (Chapters 50 and 51).

(a) Gas oil and diesel (27.10);

(b) lubricants, and clocks (91.03).

(a) Meat and fish (Chapters 2 and 3);

(b) selected dairy products (Chapter 4);

(c) wheat flour (11.01);

(d) coffee (0901.21);

(e) chocolates and sugar products (Chapters 17 and 18);

(f) cereals and prepared foods (Chapter 20);

(g) cosmetics and toiletries (33.04 and 33.05);

(h) garments and textile products (Chapters 61 and 62);

(i) footwear and leather products (Chapter 64);

(j) refrigerators (8418.10);

(k) (3 dishwashing machines (84.22);

(l) household electrical appliances (85.09);

(m) televisions (85.28); VCR's (85.29);

(n) stereo systems (85.18 and 85.19);

(o) Motor cycles (87.11);

(p) parts and accessories of motor cars (87.08);

(q) Tubes, brake fluids and antifreeze (38.19 and 38.20).

(r) Cement (Chapter 68);

(s) sawn timber (44.07);

(t) plywood (Chapter 44);

(u) paints and varnishes (32.09);

(v) carpets and floor coverings (Chapter 57).

(w) Fabrics (51.06 and 51.07);

(x) cotton yam (52.05);

(y) electrical transformers (85.04);

(z) steel articles from mills (73.25 and 73.26);

(aa) steel containers (73.09);

(ab) starches, glues and enzymes (Chapter 35).

(a) petrol (27.10).

(a) perfumes (33.03);

(b) pearls (71.01);

(c) diamonds (71.02);

(d) beverages and spirits (Chapter 22);

(e) cigarettes (24.02 and 24.03);

(f) cars and vehicles (87.03).

(g) table games and funfair articles (94.04 and 94.05).

NATURE OF TAX

Effective September 16, 1993, this tax is levied on duty-inclusive values of aU imports.

EXEMPTIONS AND DEDUCTIONS

Imports exempt from import duty are also exempt from consumption tax. Given a lack of adequate border control, special rules apply to the refund of import duties on re-exportation.

RATES

4 percent.

EXPORT DUTIES

NATURE OF TAX

An ad valorem tax levied on the free- on-board (f.o.b.) values of a limited number of exports.

EXEMPTIONS AND DEDUCTIONS

None.

RATES

There are only two rates:

10 PERCENT:

(a) Live bovine animals (01.02);

(b) Live swine (01.03);

(c) Live and processed fish (03.011 to 03.07).

(d) Wood sticks, split poles etc (44.04);

(e) Wood wool and wood flour (44.05);

(f) Sawn wood (44.07)-

50 PERCENT:

(a) Cut flowers and plants for perfumes (12.11);

(b) gums, resins and vegetable extracts (13.01 and 13.02);

(c) alcohol extracts (29.05);

(d) and selected chemicals including carbons (29.21 to 29.34, and 29.39).