FTAs lead to loss of customs, excise revenue in Cambodia

29 Dec '23

1 min read

Pic: Adobe Stock

Insights

Cambodia has seen reduced customs and excise revenue collection due to a fall in tariffs for partner nations with which it has bilateral and multilateral free trade pacts.
The general department of customs and excise collected $2.8 billion in the first 11 months this year, representing a loss of $400 million compared to the corresponding period last year.

Cambodia has witnessed reduced customs and excise revenue collection due to a fall in tariffs for partner nations with which it has bilateral and multilateral free trade agreements.

The general department of customs and excise (GDCE) collected $2.8 billion in the first 11 months this year, representing a loss of $400 million compared to the corresponding period last year.

GDCE director general Kun Nhem attributed the decline in customs revenue collection primarily to the implementation of the FTAs.

Development in the country’s manufacturing sector have also led to reduced imports as domestic products replace imported ones, he was quoted as saying by a Cambodian newspaper.

The Cambodia-China FTA, implemented from January 1 last year, made nearly 98 per cent of the country’s exports to China and 90 per cent of imports from China exempt from tariffs.

The Regional Comprehensive Economic Partnership also boosting exports, but reduced some import tax revenue.

The country will soon implement the Cambodia-South Korea FTA.

Fibre2Fashion News Desk (DS)

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