T HE CHAIRMAN of Royal Cambodia Company Ltd (RCC), Meng Kith, has spoken out against "parallel traders" illegally importing and selling poor quality goods in the country.

Kith made the comments only days after signing an agreement with Canon Singapore Pte Ltd on Sept 8 giving RCC exclusive distribution rights over Canon products in Cambodia.

The one year contract which is automatically renewable each year will also allow RCC to import products and spare parts and to receive technicians and training from Canon Singapore.

Kith said that parallel traders smuggled products into the country via low-taxing neighboring countries such as Vietnam and Thailand, and thereby avoided paying Cambodian duties .

RCC, a subsidiary of the Royal Group of Companies, has to pay 15 percent import duty and 4 percent sales tax on all Canon products sold in Cambodia, according to Kith.

He said at other times the parallel traders imported discontinued stock or sold non-genuine spare parts which damaged the reputation of legitimate companies such as RCC which had a long term interest in the country.

The RCC chairman reckons that illegal sales of Canon products by parallel traders have damaged the sole distributor's market share by between 5 to 10 percent.

"Let the consumer know ...if the dealers are not authorized they are not genuine Canon traders... Some of them, they sell, make money and run away," Kith warned.

He said he wanted the Cambodian authorities to cooperate with RCC to help eradicate the problem. He added that the government was in the process of drafting a law on the issue which should come before the National Assembly next month.

Kith said two new Canon color laser copying machines will soon be available in Cambodia: the FC330 and FC530 which will sell for between $15,000 and $25,000.