Cambodia Qualified Investment Project : customs.gov.kh

Organization : General Department of Customs and Excise of Cambodia
Facility : Qualified Investment Project (QIP)
Country : Cambodia
Website : https://www.customs.gov.kh/en/customs-procedures/355-qualified-investment-project-qip?ref=714

What is Qualified Investment Project?

According to the Law on Investment of the Kingdom of Cambodia, Only Qualified Investment Projects are entitled to the benefits subject to the scope of this Law. Qualified Investment Project, abbreviated to “QIP”, is the investment project which has received a Final Registration Certificate. To be admitted as a QIP, the investor has to register the investment project with the Council for the Development of Cambodia (CDC) or Provincial-Municipal Investment Sub-Committee (PMIS) and receive a Final Registration Certificate (FRC).

Related / Similar Facility : Cambodia Best Trader Membership Application

Types of Qualified Investment Project

There are three types of Qualified Investment Project:
1) Domestically Oriented Qualified Investment Project,
2) Export Oriented Qualified Investment Project, and
3) Supporting Industry Qualified Investment Project.

Exemption of Customs Duties and Taxes

Exemption of Customs Duties:
Conforming to the Sub-Decree No. 111 on the Implementation of the law on the Amendment to the Law on Investment of the Kingdom of Cambodia, a QIP shall be entitled to the exemption based on each category of QIP as follows:

Domestic Oriented QIP:
Domestic Oriented QIP refers to a QIP that does not aim at export. Production Equipment and Construction Materials imported by a Domestic QIP are exempt from Customs Duties. In the case where the QIP has a capability to directly export any portion of its manufactured products or has supplied for export industry, the quantity of Production Inputs that were taxed at the time of import and later used to produce goods directly or indirectly exported shall be entitled to customs duties exemption after a review of the quarterly report.

Export Oriented QIP:
Export Oriented QIP refers to a QIP that sells or transfers a proportion of its product to a purchaser or transferee outside the Kingdom of Cambodia. Production Equipment, Construction Materials, and Production Inputs imported by Export QIP are exempt from customs duties. However, for the QIP which operates under the customs bounded warehouse mechanism, the customs duties exemption shall be in compliance with the law and regulations in force applicable to the mechanism. The processed Production Inputs that have not been exported shall be subject to the payment of customs duties and Taxes applicable at the time of import after review of the quarterly report.

Supporting Industry QIP:
Supporting Industry QIP refers to a QIP that supplies 100% percent of its products to export QIP instead of imported raw materials and accessories. Production Equipment, Construction Materials, and Production Inputs imported by a Supporting Industry QIP are exempt from customs duties. However, in the case where the QIP failed to supply 100% of its manufactured products to the export industry or directly export its products, then the quantity of the QIP’s production inputs used to produce those goods shall be subject to the customs duties and taxes after review of the quarterly report.

Import Procedure For QIP

** In order to import Production Equipment, Construction Materials, or Production Inputs with the exemption of customs duties or taxes, QIP shall fulfill following conditions:
** Investors or their representatives shall apply for Master List of imported goods from the Council for the Development of Cambodia (Cambodian Investment Board-CIB).
** After getting approval from CDC or CIB, the above master list shall be submitted to GDCE (Department of Customs Procedure) or National Single Window
** When goods in the above master list are imported, investors or their representatives shall apply for Customs Permit through National Single Window, attaching with supporting documents such as invoices, packing lists, transportation document, authorized letters, and other related documents if necessary.
** After obtaining Customs Permit, investors or their representatives shall complete the procedure of Customs Declaration as the procedure in force.