Logo of Phnom Penh Post newspaper Phnom Penh Post - Customs broker licence fees waived till 2021, says GDCE

Customs broker licence fees waived till 2021, says GDCE

Content image - Phnom Penh Post
Licensed customs brokers must normally pay an annual licence fee of two million riel ($490). Heng Chivoan

Customs broker licence fees waived till 2021, says GDCE

The Ministry of Economy and Finance’s General Department of Customs and Excise of Cambodia (GDCE) has postponed the payment of customs broker licence fees for 2019-2020 as the Kingdom’s logistics sector reels from the sweeping effects of the ongoing Covid-19 epidemic.

A letter signed by GDCE director-general Kun Nhem on August 13 and obtained by The Post on Monday noted that the decision was based on a request from the Cambodia Logistics Association (CLA).

“The [GDCE] would like to inform companies and individuals in the business of arranging for the customs clearance of goods that, given the status of the Covid-19 epidemic, the [ministry] has decided to waive payment of the annual customs broker licence fee.

“However, all agencies will be required to pay for the 2021 customs broker licence fee before the end of 2020,” the letter said.

Sin Chanthy, the president of CLA, which boasts a membership of 120 companies, told The Post on Monday that he submitted the proposal to the ministry on June 30.

He noted that licensed customs brokers must normally pay an annual licence fee of two million riel ($490).

“We are very happy and thankful to the [ministry], as well as the [GDCE], for deciding to waive the customs licence fee as we [the logistics sector] continue to face a shortfall [in revenue] prompted largely by Covid-19,” Chanthy said.

According to Chanthy, the Ministry of Commerce has issued nearly 500 customs broker licences.

The GDCE’s revenue collection plummeted 16.2 per cent to $1.272 billion in the first half of this year from $1.517 billion compared to the corresponding period last year.

According to Nhem, the global health crisis has precipitated a global demand and supply shock which has muted import-export activity in the Kingdom, leading to the lacklustre figures.

He said vehicle tax revenue sank 31.7 per cent and tax collected on construction materials shrunk 28.2 per cent. Meanwhile, tax revenue on petrol import gained 5.5 per cent and tax collected on other products climbed 3.1 per cent.

“By and large a key source of the department’s revenue collection, vehicle imports experienced a considerable downswing, more notably in the second quarter of 2020,” Nhem said.

He said the value of the Kingdom’s imports and exports dipped 9.4 and 7.5 per cent, respectively. Garments saw a 7.5 per cent slip in export value, but agricultural products saw a 14.5 per cent rise, with paddy, milled rice and natural rubber increasing the most.

Last year, Cambodia collected some $6 billion in revenue, up more than $1.485 billion from the government’s $4.56 billion target. Of that, the department took in $2.26 billion while the General Department of Taxation netted $2.3 billion.

MOST VIEWED

  • Seven positive for Covid-19, Hun Sen confirms local transmission

    Prime Minister Hun Sen announced that there has been local community transmission of Covid-19. However, he urged the people not to panic even though the Ministry of Health announced the discovery of seven new cases on Sunday. Among the victims are Chhem Savuth, the director-general

  • Cambodia at ‘most critical moment’, Hun Sen warns

    Prime Minister Hun Sen said the first community transmission of Covid-19 in Cambodia has led the country to the “most critical moment” that warranted urgent, large-scale operations to contain the pandemic. Hun Sen, who confirmed the first local transmission on November 28, said the source of

  • PM confirms community transmission, calls for unity

    Prime Minister Hun Sen has called on the public to stay calm, unite and follow the Ministry of Health guidelines after the wife of a senior official tested positive for Covid-19 in the Kingdom’s first case of community transmission. The case has drawn criticism

  • Over 110 garment factories close

    A government official said on November 22 that at least 110 garment factories had closed in the first nine months of the year and left more than 55,000 workers without jobs – but union leaders worry those numbers could be much higher. Ministry of Labour and Vocational Training undersecretary

  • Singapore group seeks $14M in damages from PPSP over ‘breach of contract’

    Singapore-based Asiatic Group (Holdings) Ltd is seeking a minimum of $14.4 million relief from Cambodia Securities Exchange (CSX)-listed Phnom Penh Special Economic Zone Plc (PPSP) for allegedly breaching a power plant joint venture (JV) agreement. Asiatic Group’s wholly-owned Colben System Pte Ltd and 95 per

  • PM vows to protect Hun family

    Prime Minister Hun Sen has vowed to continue his fight against opposition politicians who he said intend to smash the Hun family. Without naming the politicians but apparently referring to former leaders of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), Hun Sen said there