Foreign investors, including the Japanese Business Association of Cambodia (JBAC), have asked the Cambodian government to reduce the cost of a certificate of origin (CO).
What is the certificate of origin (CO)?
A certificate of origin, according to the Cambodian Customs website “is an official document used to certify the products originated, wholly obtained, produced or manufactured in a country. It is generally an integral part of import documents required by the importing countries.”
Investment and business groups have asked for a reduction for the price of the CO in the Kingdom of Cambodia, as it is currently far more expensive than other countries in ASEAN. The CO is required by buyers and applies to individual products.
How much does a CO cost in Cambodia?
The Japanese Business Association of Cambodia (JBAC) had requested in its 2020-2021 policy recommendation for a price reduction. A CO in Cambodia is more expensive than other ASEAN members, costing up to $58 in 2020, argued JBAC.
Countries Required C/O
Exporters in Cambodia need to apply for C/O at the Export-Import Department, Ministry of Commerce. The procedures of the application for Certificate of Origin could be found in Prakas No. 112 MOC/SM 2013 on Revision of Certificate of Origin Issuance Procedures.
Cambodia issues various different types of Preferential Tariff Certificate of Origin:
- ASEAN-Australia- New Zealand: Certificate of Origin form AANZ
- China: Certificate of Origin form AC
- India: Certificate of Origin form AI
- Korea: Certificate of Origin form AK
- Japan: Certificate of Origin form AJ
- Vietnam: Certificate of Origin form S
- General System of Preferences (LDC and LLDC): Certificate of Origin form A
- Non-Preferential Tariff: Can be issued using Certificate of Origin form N
“The price should be reduced to the same level as other countries in ASEAN. The application fee for a CO to Japan, China and other countries is still $58, which is very expensive,” JBAC said.
Costs of Certificate of Origin (CO) in ASEAN
- Vietnam – The CO is free of charge regardless of whether it is subject to a tariff or not.
- Thailand – Has three types of CO applications and the fee is $24.50.
- Singapore – The Certificate of Origin is around $7.
- Malaysia –The price of the CO is $2.39.
Te Taing Por, president of the Federation Association for Small and Medium Enterprises of Cambodia (FASMEC) said told the Khmer Times “I do agree with the suggestion because our production cost is already expensive in areas such as transportation and electricity, which is 50 per cent higher than in other ASEAN members. We need to recognise this as an issue to attract more investment.”
Cambodia’s competitiveness is seen as lower than its regional ASEAN neighbours due in part to its relatively weak business environment, according to a report by the World Bank report.