- Stock Market Development Policy and Its Strategies
4. Sector : Manufacturing
Subsector : Production or processing of psychotropic substances and narcotic substances: Schedules I, Il, and Ill of the Single Convention on Narcotic Drugs done at New York, 30 March 1961 (the "1961 Convention") and the Convention on Psychotropic Substances done at Vienna, 21 February 1971 (the "1971 Convention") in this Entry
Industry Classification: ISIC 2429
Level of Govemment : National Administration and Sub-National Administration
Obligations Concerned: National Treatment, Prohibition of Performance Requirements, Senior Management and Board of Directors
Description : National Treatment and Senior Management and Board of Directors shall not apply to any measure relating to the manufacturing of narcotic and psychotropic substances.
Manufacturing of narcotic and psychotropic substances of Schedule | is prohibited in Cambodia, but the manufacturing of finished products of Schedules II and III (1) are only permitted according to the needs and planning of the Ministry of Health of Cambodia.
Source of Measure :
- Articles 1 to 4 of the Law on the Controlling of Drugs (1997)
- Schedule I, II and Ill of the 1961 Convention and the 1971 Convention September 2005 on the implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia
- Sub-Decree No. 111 ANK/BK dated 27 September 2005 on the implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia
5. Sector : Manufacturing
Subsector : Production of poisonous chemicals, agriculture pesticide, or insecticide and other goods by using chemical substances
Industry Classification : ISIC 2421
Level of Govemment : National Administration and Sub-National Administration
Obligations Concerned : National Treatment
Most-Favoured-Nation Treatment Prohibition of Performance Requirements Senior Management and Board of Directors
Description : National Treatment Most-Favoured-Nation Treatment and Prohibition of Performance Requirement Senior Management and Board of Directors shall not apply to any measure relating to the production of poisonous chemicals, and agriculture pesticide or insecticide.
The production of other goods by using chemical substances, prohibited by international regulations or the World Health Organization, is prohibited for all investors.
The production, processing and registration of pesticide in the list of banned pesticides (2) in Cambodia are prohibited. The production, processing and registration of other pesticides shall also be rejected if:
1. information and data attached to the application are false;
2. pesticide is highly toxic to public health or causes risk rather than the advantage of that pesticide usage;
3. pesticide is a phytotoxic product that cannot compensate the losses of crop yield;
4. the efficacy of the pesticide has lower standard than what is clarified;
5. the pesticide contains persistent toxic residue in crops and in the environment.
Source of Measure :
- Prakas No. 598 BRK.KSK dated 15 December 2003 issued by the Ministry of Agriculture, Forestry and Fisheries
- Prakas No. 484 BRKKSK dated 26 November 2012 issued by the Ministry of Agriculture, Forestry and Fisheries
- Sub-Decree No. 111 ANK/BK dated 27 September 2005 on the implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia
- Articles 8 and 16 of the Law on the Management of Pesticides and Fertilizers (2012)
6. Sector: Agriculture
Subsector: Seed management and Plant breeder's rights
Industry Classification: ISIC 0140
Level of Govemment: National Administration and Sub-National Administration
Obligations Concerned: National Treatment Prohibition of Performance Requirements Senior Management and Board of Directors
Description:
A foreign person cannot enjoy a plant breeder's right or related rights except for a foreign person who:
1. has resident status in Cambodia; or
has a permanent residence in a signatory state of the Convention of the International Union for the Protection of New Varieties of Plants adopted in Paris in 1961, as amended, or in any State which has a memorandum of understanding with Cambodia regarding plant variety protection.
Source of Measure
- Article 13 of the Law on Seed Management and Plant Breeder's Rights (2008) and related regulations
7. Sector: Fishery
Subsector: Inland and marine fishery
Industry Classification: ISIC 0500
Level of Govemment: National Administration and Sub-National Administration
Obligations Concerned: National Treatment, Prohibition of Performance Requirements, Senior Management and Board of Directors
Description:
The following activities shall be prohibited for all investors:
1. fishing during closed season (for middle- scale and industrial fishing);
2. any fishing activities in the fishery conservation areas, except where special permission is granted by the Minister of Agriculture Forestry and Fisheries to the Fisheries Administration to conduct scientific, technical research, and experiments related to fishery;
3. bypass navigations or any activities in the fisheries conservation areas except competent officers in case of law enforcement;
4. new settlement of less than two kilometres distance from the boundaries of fishery conservation areas except for Fisheries Administration resident which is used for law enforcement purposes;
5. any fishing activities in the fishery domain using the prohibited gears (3);
6. producing, buying, selling, transporting, and storing any electrocuting devices, all types of mosquito net fishing gear, mechanised motor pushed nets, inland trawlers that are used for fishing purpose; and
7. Other activities prohibited in the Law of Fisheries (2006).
A foreign person cannot enjoy small-scale or family-scale fishing.
Fishing exploitation or aquaculture by foreigners must be conducted under the agreement with the Ministry of Agriculture Forestry and Fisheries after obtaining the approval from the Royal Government of Cambodia.
Transhipments of fishery products and anchoring of the foreign fishing vessels shall be in accordance with terms and conditions determined by the Fisheries Administration.
Foreign fishing vessels that are permitted to fish in the marine fishery domain shall inform the Fisheries Administration prior to port calls in marine fishery domains of Cambodia.
Only Cambodian (Khmer) nationals can establish fishing community in their locals in order to manage, conserve, develop and use fishery resources.
Source of Measure
- Law on Fisheries (2006)
- Sub-Decree No. 25 ANK.BK dated 20 March 2007 on Management of Fishing Community
8. Sector: Forestry
Subsector: Forestry and Logging: Forestry exploitation business
Industry Classification: ISIC 0200
Level of Govemment: National Administration and Sub-National Administration
Obligations Concerned: National Treatment Prohibition of Performance Requirements Senior Management and Board of Directors
Description:
National Treatment and Senior Management and Board of Directors shall not apply to any measure relating to restriction or regulation on forestry and forestry-related industries.
All activities prescribed in Articles 28 to 39 of Chapter 8 of the Law on Forestry (2002) shall be prohibited. Natural protected areas shall be govemed by the Law on Environmental Protection and Natural Resource Management (1996), with the purpose to:
- protect and promote environmental quality and public health through the prevention, reduction and control of pollution;
- assess environmental impacts of all proposed projects prior to the issuance of the decision by the Royal Government of Cambodia;
- ensure rational and sustainable conservation, development, management and use of the natural resources of Cambodia;
- encourage and enable the public to participate in environmental protection and natural resource management;
- suppress any acts that cause harm to the environment.
Cambodia's measures relating to the investments in the Permanent Forest Reserves, except for rubber and eucalyptus plantations, are for the purpose of ensuring the sustainable management of forests for its social, economic and environmental benefits, including conservation of biological diversity and cultural heritage. Investors or the investment must comply with environmental impact assessment screening criteria and assessment process applicable to their proposed investments prior to their establishment required by the Law on Environmental Protection and Natural Resource Management (1996) and its Sub-Decree on Environmental Impact Assessment Process (EIAP) for such investment.
Source of Measure :
- Law on Forestry (2002)
- Law on Environmental Protection and Natural Resource Management (1996)
- Government Declaration dated 25 January 1999 on Management and Elimination of Forest Anarchy
- Sub-Decree No. 111 ANK/BK dated 27 September 2005 on the Implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia
9. Sector: Mining
Subsector: Mining including sand exploitation, and oil and gas extraction and refinery
Industry Classification: ISIC 1410, 1110
Level of Govemment: National Administration and Sub-National Administration
Obligations Concerned: National Treatment, Prohibition of Performance Requirements, Senior Management and Board of Directors
Description:
To protect the natural environment in all areas within the fresh water and sea water in Cambodia, all kinds of sand exploitation for export abroad shall be prohibited.
National Treatment, Prohibition of Performance Requirements and Senior Management and Board of Directors shall not apply to any measure relating to mining, including the sand exploitation, and oil and gas activities carried out within Cambodia.
An investment license in mining, including sand exploitation and oil and gas activities, is required and shall be subject to terms and conditions determined by the Council of Ministers, the Ministry of Mines and Energy and the relevant regulatory authorities.
Investment projects involving exploration and exploitation of minerals and natural resources shall be submitted for the approval of the Council of Ministers.
The export of all types of natural resources is prohibited. Mineral resources shall be preserved to meet the demand of the domestic factories in converting those mineral resources to finished products. Only finished products are allowed for export.
Petroleum contractors shall have obligations to (1) provide education, training and prioritising employment for Cambodian people and (2) maximize the utilization of domestic labour force, goods and services.
The Royal Government of Cambodia can require petroleum contractors to supply not more than 25 per cent of their petroleum share for fulfilling domestic demand. In case of emergency in domestic supply, the exportation of petroleum's resources shall be prohibited.
Petroleum contractors shall submit all petroleum data from their operations to the Ministry of Mines and Energy when the petroleum agreement is completed or expired.
Petroleum contractors shall submit all information and reports to the Ministry of Mines and Energy.
The Ministry of Mines and Energy can publicly disseminate relevant information related to petroleum operations, and environmental and social.
The State has its right to participate in the shares of petroleum operation. The shares participation of the State is approved by the Prime Minister.
Source of Measure
- Law on Environmental Protection and National Resource Management (1996)
- Law on Mineral Resource Management and Exploitation (2001)
- Law on Management of Petroleum and Petroleum Products (2019)
- Sub-Decree No. 27 ANRK.BK dated 6 April 1999 on the Water Pollution Control
- Article 11 of Sub-Decree No. 60 ANK. BK dated 5 April 2016 on the Organization and Functioning of the Council for the Development of Cambodia
- Sub-Decree No. 08 ANK.BK dated 31 January 2005
- Govemment Decision No. 29 SSR dated 8 May 2009 on the Limitation of Sand Exploitation
10. Sector: All Sectors
Subsector:
Industry Classification:
Level of Govemment: National Administration and Sub-National Administration
Obligations Concerned: National Treatment Prohibition of Performance Requirements Senior Management and Board of Directors
Description:
Investment projects which:
- have investment capital of USD 50 million or more; involve politically sensitive issues;
- may have negative impact on the environment;
- have long-term strategy; or
- involve infrastructure concession,
shall be submitted for the approval of the Council of Ministers. Other or further requirements relating to National Treatment, Prohibition of Performance Requirements and Senior Management and Board of Directors for the aforementioned investment projects may be adopted by the Council of Ministers.
Prohibition of Performance Requirements and Senior Management and Board of Directors shall not apply to any measure relating to tax incentive for small and medium enterprises with any condition as follows:
- to use at least 60 per cent local content;
- to increase the number of employees by at least 20 per cent; or
- to locate in small and medium enterprises Cluster.
Source of Measure
- Sub-Decree No. 111 ANK/BK dated 27 September 2005 on the implementation of the Law on the Amendment to the Law on Investment of the Kingdom of Cambodia
- Sub-Decree No. 124 ANKBK dated 2 October 2018 on Tax Incentive for Small and Medium Enterprises
- Article 11 of Sub-Decree No. 60 ANK. BK dated 5 April 2016 on the Organization and Functioning of the Council for the Development of Cambodia
LIST B. EXPLANATORY NOTES
1. This List B sets out, pursuant to Article 13 (Reservations and Non-Conforming Measures) of Chapter 11 (Investment), the specific sectors, subsectors or activities for which Cambodia may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 3 (National Treatment) of Chapter 11 (Investment);
(b) Article 4 (Most-Favoured-Nation Treatment) of Chapter 11 (Investment);
(c) Article 5 (Senior Management and Board of Directors) of Chapter 11 (Investment); or
(d) Article 6 (Prohibition of Performance Requirements) of Chapter 11 (Investment).
2. Each entry in this List A sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Subsector, where referenced, refers to the specific subsector for which the entry is made;
(c) Industry Classification, where referenced, refers to the activity covered by the entry, according to the CPC, ISIC Rev. 3.1, or as expressly otherwise described in that entry;
ISIC Rev. 3.1 means the International Standard Industrial Classification of All Economic Activities as set out in the Statistical Papers, Series M, No.4, ISIC Rev. 3.1, Statistical Office of the United Nations, New York, 2002; and
CPC means the Provisional Central Product Classification as set out in the Statistical Papers, Series M, No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991.