In B2B Cambodia's 'Legal Update' we delve into the latest legal changes and developments in Cambodia's laws and regulations with key experts in the field.
In this episode we take a look at Cambodia’s customs landscape with Diberjohn Balinas, Tax Partner at DFDL Cambodia, following the publishing of the DFDL Cambodia Customs Guide 2025.
What Are the Main Customs Regulations in Place in Cambodia?
Customs regulations in Cambodia are primarily covered or administered by the General Department of Customs and Excise (GDCE), which is under the Ministry of Economy and Finance (MEF).
“The main legislation for customs is the Law on Customs, which was enacted in 2007,” explained Balinas. “The law on customs is supported by Sub-Decrees, Prakas and Instructions issued by the GDCE. It is also covered or supported by the international agreements entered by Cambodia, MOUs and other domestic laws.”
Cambodia joined the World Customs Organisation (WCO) in 2001, as well as the World Trade Organisation (WTO) in 2004, so the application of international rules and procedures of the WCO and WTO also applies in Cambodia.
“In addition, Cambodia adopts the ‘Harmonised System’ in determining tariff classifications and customs tariff determinations,” he added.
Cambodia’s Current Free Trade Agreements (FTAs)
Cambodia currently has 11 free trade agreements (FTAs). These free trade agreements streamline trade facilitation among member countries, and also eliminate, or reduce, trade barriers.
Cambodia’s Free Trade Agreements As Of 2025:
- Cambodia-China Free Trade Agreement
- Cambodia-Korea Free Trade Agreement
- Cambodia-UAE Comprehensive Economic Partnership
- Regional Comprehensive Economic Partnership (RCEP)
- ASEAN Trade in Goods Agreements (ATIGA)
- ASEAN-Hong Kong Free Trade Agreement
- ASEAN-China Free Trade Agreement
- ASEAN-Korea Free Trade Agreement
- ASEAN-India Free Trade Agreement
- ASEAN-Australia-New Zealand Free Trade Area
- ASEAN-Japan Comprehensive Economic Partnership
Commenting further on RCEP, Balinas explained:
The Regional Comprehensive Economic Partnership, which is entered among 15 countries and is the largest free trade agreement in the world, constitutes roughly 30 per cent of the world's gross domestic product (GDP). Partner countries are the ASEAN [member countries] and five non-ASEAN countries – China, Japan, Australia, New Zealand and Korea. The main benefit of RCEP is the rules of origin and the cumulation rules among participating members.
“In terms of recent free trade agreements entered by Cambodia, in the past three years, Cambodia has entered into bilateral agreements with China, South Korea, and lastly, I think a year ago, with the United Arab Emirates (UAE),” Balinas added. “Now they are also planning to enter into several bilateral agreements with other countries, such as India, countries in the EU as well as in Latin America.”
Stay tuned for Part 2 of our Legal Update on Cambodia's Customs Landscape
with DFDL Cambodia.
Cambodia’s Strategic Positioning Within the Mekong Region and ASEAN
Cambodia is strategically located within the Mekong region, bordering Thailand, Vietnam and Laos. In terms of seaway and ports, Cambodia is also connected with the Mekong river, which provides access to neighbouring border countries, Myanmar and China.
“In terms of trade routes, Cambodia is also near the Gulf of Thailand, so there is a lot of potential in terms of the location of the country,” said Balinas.
Cambodia has seen a growing seaport and inland waterway potential given the expansions made to the Sihanoukville Autonomous Port (PAS) as well as the Phnom Penh Autonomous Port, and also the [expected] completion of the Funan Techo Canal, which which will provide a direct shipping route in the Mekong region, so it may reduce the country’s reliance on Vietnam imports, which would lead to more trade volume for Cambodia.
While Cambodia's infrastructure has significantly improved over the years, Balinas stressed that there is still a lot of improvement needed to be made, especially on trade bottlenecks at the country’s borders and in terms of the integration of the digital infrastructure within the country.
What Recent Measures Have Been Put in Place to Improve Customs Procedures, Regulations and Infrastructure in Cambodia?
Balinas explained that many of the recent developments made to improve customs procedures in Cambodia have been driven by digitalisation and the integration of digital tools into the customs system.
He highlighted three major points regarding these digital developments.
The Launch of Phase Three of the Cambodia National Single Window (CNSW)
The Cambodia National Single Window (CNSW) is the online platform that allows traders to upload and provide documents for smooth import and export procedures. The first phase of the CNSW introduced the connection between the Customs Data System with the Ministry of Commerce (MOC), as well as with the ASEAN National Single Window. Phase Two brought on further integration between ministries involved in the issuance of licences and permits.
“Now, in May 2024, the GDCE launched Phase Three of the CNSW,... [which saw further] expansion, or integration, of more ministries into the system,” shared Balinas.
Currently there are 16 institutions that are part of the CNSW, including the GDCE, the MOC, the Ministry of Health (MOH), Ministry of Industry, Science, Technology & Innovation (MISTI), Council for the Development of Cambodia (CDC) and more.
“The third phase also covers the implementation of the procedures for prohibited and restricted goods, as well as the procedures of availing tax incentives for those entitled,” said Balinas.
Integration of the GDCE Digital Tools with ASYCUDA
“Another aspect of digitalisation is the integration of the GDCE’s existing digital tools with the ASYCUDA system used for declaration in Cambodia,” added Balinas.
This digital improvement also includes the launching of the pre-arrival processing procedures in major ports and airports, which was launched in July 2024; the expansion of the digital interface of the current CNSW; and the introduction of manual procedures for express consignment of e-commerce transactions
GDCE Customs Reform and Modernisation Strategy (2024-2028)
In January 2024, the GDCE released the Customs Reform and Modernisation Strategy (2024-2028), which aims to enhance trade facilitation and boost business and investment opportunities in the country.
The five-year strategy has six main pillars:
- Efficiency in revenue collection
- Trade facilitation and customs cooperation
- Compliance and law enforcement
- Legal and regulatory framework enhancement
- Advancements in information technology systems
- Amplification of institutional capacities
“If properly implemented, this would significantly improve and enhance customs procedures in Cambodia,” Balinas concluded.
More legal updates with DFDL Cambodia covering Cambodia's customs procedures, BTIM and AEO are coming soon!