1. CHAPTER 9 SHIPMENTS CLEARANCE & FORMALITY IN CAMBODIA I. FORM & FORMALITY OF SHIPMENT. Form of Shipment: -Duty Free shipment -Duty shipment. Formality of shipment clearance: - Import shipment - Export shipment

2. II. IMPORT SHIPMENT AFFAIRS II-1-Import Duty Free shipment: Duty Free import shipment may refer to the subjects as follows: 1-Shipment of Government supply 2-Shipment of Garment and Investment supply 3-Shipment of Non Government Organization (NGO) supply 4-Shipment of Embassy supply Before importation, this duty free shipment must be allowed by Government first such as (Ministerial administration, Council Development of Cambodia(CDC), Ministry of Economic and Finance, Office of council of Ministers and duty free permission delivered by Customs House)

3. II-2-Import Duty shipment: This shipment is performed only for importation. Currently in Cambodia, it has 2 forms: Imports Duties: It has two forms of Imports Duties: -Imports Duties for cost of shipment CIF less than US$5,000.00 and - Imports Duties for cost of shipment CIF more than US$5,000.00 and When the cost of shipment is less than CIF US$5,000.00, the price of shipment in the commercial invoice must be certified by Customs House. Importer has to present all the documents of importation such as commercial Invoice, Packing list, Transport document, Insurance certificate and others necessary documents to the Custom House at the Bureau of valuation.

4. When the cost of shipment is more than CIF US$5,000.00, importer has to arrange PSI (Pre shipment inspection) and certificate of shipment inspection (CSI) for the shipment. It means the shipment must be inspected by any independent inspect company that acknowledged and recognized by the government of Cambodia before loading at the port of shipment and then certificate of shipment inspection is issued by inspection agency of the independent shipment inspection in the buyer’s nation place (Cambodia).

5. Note: 1- PSI service (inspection fee) is paid by importer 2- In case of PSI shipment, importer must confirm clearly to the exporter and note it very strictly in the contract. 3- All entering shipments in Cambodia have price CIF more than US$5,000.00 without PSI must be paid penalty 10% on the CIF amount of the valuation price issued by Customs House.

6. 2- Exports Shipments Formalities Actually, many countries in the world try to reduce and limit the export formalities in order to promote production such as export without tax but the exporter has to arrange the exports shipments documents for statistical purpose and to facilitate control. Exporter has to apply for certificate of processing issued by ministry of industries, certificate of origin issued by Ministry of commerce, export shipment inspection issued by customs house officers and Kamcontrol officers at the place of exportation and export license shipment if it is necessary.

7. - Sea Shipment import Customs Clearance Sea inbound shipment that is controlled by customs officer must have the following documents. –Original Commercial invoice certified and stamped by Customs House when the cost of import shipment is les than CIF UD$5,000.00 –Original Certificate of shipment inspection issued by independent inspection company that recognized by the government of Cambodia before when the cost of shipment is more than CIF US$5,000.00 –Original import Duty Free permit from the Customs House when the shipment is Duty Free shipment –Copy of VAT letter issued by Tax Department –Copy of Packing list –Original Import customs declaration certified by customs officer –Original shipment inspection report issued by Customs and Kamcontrol officers –Original Customs Tax paid Note

8. II-3-Import Shipment Document clearance: Before importation, importers should have import-documents as follows: 1-Duty shipment *SGS shipment. Certificate of survey that inspected and delivered by SGS. Copy Invoice, B/L, Packing List. Go to port to apply import application form and see different authorities, Pay Tax and declare import shipment.

9. III. EXPORT SHIPMENT AFFAIRS III-1-Before Exportation When we get exportation schedule, exporter should rush to collect and clip the information and documents in separate file that were held by buyer and seller as follows: 1-Important Information to need. Name and address of shipper. Name and address of consignee. Forwarder of the consignee. Place of destination-or last destination. Route of transportation. Term of Delivery. Term of payment. Port of destination. Port of shipment or port of loading. Time shipment. Shipping mark. Goods description. Seal container No. Quantity. Container size. Unit price and total price of goods

10. 3-During of loading Cargo 3-1-Container booking order Find carrier to book and check the container and it is noted that the container must the right order for forwarder. *Some information to carrier for booking container:. Shipper name and address. Consignee name and address. Container size. Style of container. Quantity of goods to be loaded (Carton or dozen etc..). Gross weight and net weight. Volume and dimension in M3. Place and time of cargo loading and departure date

11. 3-2-Packaging Besides putting name, net weight and gross weight, the products should be instructed as follows:. Fragile. Class care. Use no hooks. This side is fragile. Keep cold. Keep warm. Keep dry. Open here. Poison. Fire. Do not stack. Keep balance etc.. 3-3- Cargo clearance Invite customs and Cam control agents to inspect the goods and declare export declaratio