• Home
• Introduction
to MOC
• Functional
Structure
• Trade
Statistics
• Trade
Directories
• Economic
Integration
• Cambodia's
Exporters
• MOC
Links
• MOC
Contacts
•
Legal
• Pro-Poor
Trade Sector Strategy
• Integrated Framework (IF)
• Speeches
• IPR
• Cambodia's Imports
• Licensing & Registration
• Activities
• Seminar
|
 |
A
pilot study prepared under the Integrated Framework for Technical
Assistance
Centre
for International Economics
Canberra & Sydney
26 November 2001
Contents
Preface
Glossary
|
1
|
Macroeconomic
assessment |
1 |
|
Cambodia’s
key macroeconomic developments and prospects |
2 |
|
Dollarization
in Cambodia |
9 |
|
Exchange
rate arrangements |
18 |
|
Medium
term technical assistance requirements |
22 |
| 2 |
Developments
in trade policy |
25 |
|
Introduction |
25 |
|
Measures
affecting imports |
27 |
|
WTO
accession issues |
48 |
|
Interface
between trade policies, industrial development and poverty
alleviation |
55 |
| 3 |
Trade
facilitation |
64 |
|
Preconditions
for customs reform |
65 |
|
Transport |
70 |
|
Border
trade |
74 |
|
Review
of customs procedures and administration |
76 |
| |
Export
procedures
|
85 |
|
Monitoring
tax and duty free imports |
90
|
|
Camcontrol |
93 |
|
Trade
finance |
96 |
|
Export
processing zones |
98 |
| 4 |
Assessing
poverty impacts |
105 |
|
Annexes |
129 |
| A |
Cambodia:
medium term macroeconomic framework |
131 |
|
Baseline
scenario |
131 |
|
Sensitivity
analysis |
133 |
| B
|
Cambodian
excise taxes |
136 |
| C |
Effective
tariff rates |
137 |
| D |
Investment
restrictions |
144 |
| E |
Cambodia’s
CEPT schedule |
146 |
| F |
Documentation
processes |
147
|
| G |
Household
expenditures |
151 |
|
References |
152 |
| Boxes,
charts and tables |
| 1.1 |
Cambodia:
Selected Economic Indicators, 1995-2001 |
3 |
| 1.2
|
Cambodia:
medium-term macroeconomic framework, 1995–2006 |
4 |
| 1.3 |
Cambodia:
balance of payments, 1997–2006 |
8 |
| 1.4 |
Cambodia:
Monetary Survey, December 1995–June 2001 |
9 |
| 1.5 |
Cambodia:
foreign currency deposits, 1991–2000 |
11 |
| 1.6 |
Foreign
currency deposits in Cambodia and neighboring countries |
13 |
| 1.7 |
Cambodia
riel circulation |
14 |
| 1.8 |
Ratio
of foreign currency deposits to broad money, 1995 and 2000 |
15 |
| 1.9 |
Ratio
of gross official reserves to foreign currency deposits –
2000 |
16 |
| 1.10 |
Cambodia:
exchange rate developments |
20 |
| 1.11 |
Bilateral
exchange rates and inflation in selected ASEAN countries |
24 |
| 2.1 |
Trade,
growth and poverty: assessments of the evidence |
26 |
| 2.2 |
Cambodia’s
tariff rate structure |
28 |
| 2.3 |
Tariff
rate structure |
29 |
| 2.4 |
Trade
tax revenue collected and forgone in 2000 |
30 |
| 2.5 |
Value
of trade tax exemptions by recipient |
30 |
| 2.6 |
Average
effective trade tax on exports, 2 digit HS |
32 |
| 2.7 |
Selected
products subject to predetermined minimum dutiable value |
34 |
| 2.8 |
Cigarette
re-exports and the system of taxes |
35 |
| 2.9 |
Selected
products subject to import licensing and prohibitions |
36 |
| 2.10 |
Selected
products subject to export licensing and prohibitions |
41 |
| 2.11 |
The
Indonesian experience with tax holidays |
44 |
| 2.12 |
Sectors
included in the negative investment list |
45 |
| 2.13 |
Cambodia’s
cascading tariff structure |
56 |
| 2.14 |
Cambodia's
cascading tariff structure by sector in 2001, ISIC two digit |
56 |
| 2.15 |
Experiences
with import substitution strategies |
59 |
| 2.16 |
Estimates
of effective rates of protection, 1997 |
60 |
| 2.17 |
Revenue
implications of zero tariff rate on imports of textiles and
garments |
62 |
| 3.1 |
Customs
and revenue authorities |
67 |
| 3.2 |
Process
to obtain Certificate of Origin for garment export |
88 |
| 3.3 |
Source
of customs duty and tax exemptions |
93 |
| 3.4 |
Relative
interests of industrial estate partners |
100 |
| 3.5 |
Comparison
of export profit under average GSP and MFN tariff rates |
103 |
| 4.1 |
Expenditure
shares, by decile of per capita consumption, in per cent |
109 |
| 4.2 |
Share
of food expenditures in total expenditures: rural and urban
areas, in per cent by consumption decile |
110 |
| 4.3 |
Contributions
to income from different sources |
111 |
| 4.4 |
Share
of wage income in total income: Rural and Urban areas, in per
cent by decile |
112 |
| 4.5 |
Employment,
by industry group and gender |
113 |
| 4.6 |
Effect
of a 5 per cent reduction in transaction costs, +3 per cent
increase in milling yield, and +5 per cent reduction in post
harvested losses, by decile, as per cent of total household
expenditures |
118 |
| 4.7 |
Effect
of a 2.5 per cent reduction in transport cost for consumption
and production in rural areas, by deciles, as per cent of
total household expenditures |
119 |
| 4.8 |
Effect
of a 10 per cent increase in the price of rice, by decile, as
per cent of total household expenditures, Cambodia |
120 |
| 4.9 |
Tariff
rates for main consumer items |
122 |
| 4.10 |
Effect
of reducing Food and Clothing and Footwear tariffs to 7 percent |
124 |
| 4.11 |
Average
net income per hectare, by region, in thousands of riels of
1999(*) |
125 |
| 4.12 |
Number
of families and number of people beneficiated by the land
distribution ( 0.5 has of agricultural land is given to
farming households with less that 0.5 ha), in 000 |
126 |
| 4.13 |
Effect
of a land distribution: 0.5 has of agricultural land is given
to farming households with less that 0.5 ha In per cent of per
capita household consumption |
126 |
|
4.14 |
Effect
on per capita consumption in those households that received
land |
126 |
Preface
IN
AUGUST 2001, a team of consultants worked with Ministry of Commerce (MOC)
officials in Cambodia to conduct a diagnostic study of Cambodia’s
trade policy issues and technical assistance needs. The terms of
reference for this study were designed to support the Royal Government
of Cambodia (RGC) in developing its Pro-Poor Trade Policy Strategy.
Ministry of Commerce officials involved were H.E. Sok Siphana, Secretary
of State; In Vothana, Bureau Chief; Ung Sovithiea, Deputy Bureau Chief;
Keomuny Kong, Deputy Bureau Chief; Sophann Tauch, Director; and Oeur
Samrith, Assistant Director. The team members were Kelly Bird,
Consultant — Trade Policy; Sandy Cuthbertson, Consultant, Centre for
International Economics (CIE) —Team leader; Martin Desautels,
Consultant, Gide Loyrette Noel (GLN) — WTO Accession; Curtis Hundley,
Consultant — sector studies on tourism and fisheries; Hiau Looi Kee,
World Bank — market access survey and analysis; Ray Mallon, Consultant
— sector studies on rice and labour services; Philippe Marciniak, IMF
— macroeconomic assessment; Andrew McNaughton, Consultant — sector
studies on diversified agriculture and handicrafts; Maika Oshikawa, WTO
— trade policy, Sopanha SA, IMF — macroeconomic assessment; Isidro
Soloaga, Consultant — poverty assessment; Ieng Sovanarra, Consultant
— sector study on garments; and Geoff Wright, Consultant — trade
facilitation. The review of investment regulation was carried out by
Ross Chapman and Lee Davis of the CIE as a parallel study working
directly to the Government. The World Bank Task Manager was Ataman Aksoy.
Following
this fieldwork, team members prepared drafts of the following reports.
-
Part
A: Overview.
-
Part
B: Component reports — macro assessment, trade policy, trade
facilitation, poverty analysis.
-
Part
C: Sector studies — rice, diversified agriculture, handicrafts,
fisheries, garments, tourism, labour services.
-
Part
D: Review of the Law on Investment.
These
drafts were discussed at a workshop held in Cambodia on 19 and 20
November 2001. Following that workshop, draft reports were finalized
particularly taking into account participants’ suggestions for
technical assistance.
Glossary
|
ADB
|
Asian
Development Bank
|
|
AFTA
|
ASEAN
Free Trade Area Agreement
|
|
ASEAN
|
Association
of South East Asian Nations
|
|
CBA
|
Currency
board arrangements
|
|
CDC
|
Cambodian
Development Commission
|
|
CED
|
Customs
and Excise Department
|
|
CEPT
|
Common
Effective Preferential Trade
|
|
CSES
|
Cambodia
Socioeconomic Survey
|
|
CP
|
Certificate
of processing
|
|
ELVIS
|
Electronic
visa implementation system
|
|
EPZ
|
Export
Processing Zone
|
|
ERP
|
Effective
Rate of Protection
|
|
ESCAP
|
Economic
and Social Commission for Asia and the Pacific
|
|
EU
|
European
Union
|
|
FDI
|
Foreign
Direct Investment
|
|
FMV
|
Fair
market value
|
|
FTB
|
Foreign
Trade Bank
|
|
GAP
|
Governance
Action Plan
|
|
GDP
|
Gross
domestic product
|
|
GMAC
|
Garment
Manufacturer’s Association of Cambodia
|
|
GSP
|
Generalized
System of Preference
|
|
ICS
|
Inventory
control system
|
|
IMF
|
International
Monetary Fund
|
|
LOI
|
Law
on Investment
|
|
MAFF
|
Ministry
of Agriculture, Forestry and Fisheries
|
|
MEF
|
Ministry
of Economy and Finance
|
|
MFN
|
Most
favored nation
|
|
MIME
|
Ministry
of Industry, Mining and Energy
|
|
MOH
|
Ministry
of Health
|
|
NAA
|
National
Audit Authority
|
|
NBC
|
National
Bank of Cambodia
|
|
NGO
|
Non
government organizations
|
|
PRGF
|
Poverty
Reduction and Growth Facility
|
|
PSI
|
Pre-Shipment
Inspection
|
|
RGC
|
Royal
Government of Cambodia
|
|
ROF
|
Report
of Findings
|
|
SEDP
|
Socioeconomic
Development Plan
|
|
TEA
|
Temporary
Export Authorization
|
|
TCAP
|
Technical
Cooperation Action Plan
|
|
TPD
|
Trade
Preference Department
|
|
UN
|
United
Nations
|
|
UNTAC
|
United
Nations Transitional Authority in Cambodia
|
|
VAT
|
Value
Added Tax
|
|
VSS
|
Valuation
Support Service
|
|
WB
|
World
Bank
|
|
WTO
|
World
Trade Organization
|
|
