The Kampuchea Shipping Agency and Brokers, also known as Kamsab, has been dissolved, a move the government hopes will cut down expenses and reduce red tape for businesses.
Sub-decree 31, issued on Tuesday and signed by Prime Minister Hun Sen, officially terminates Kamsab, a state-owned enterprise controlled by the Ministry of Public Works and Transport.
Kamsab, which was established in 1979 to facilitate trading by ship, will cease operations before the end of the month and all employees will be transferred to the Ministry of Public Works and Transport or to the autonomous ports in Phnom Penh and Sihanoukville.
The move follows a similar sub-decree issued last week that ended the role of the Cambodia Import-Export Inspection and Fraud Repression Directorate General at the country’s border crossings.
The General Department of Customs and Excise (GDCE) is now the only institution authorised to carry out inspections of goods at border gates, seaports, and special economic zones.
Both sub-decrees are seen as part of a new government strategy to enhance the country’s self-sufficiency by boosting trade.
Prime Minister Hun Sen last month unveiled a national policy to counteract the effects of the potential revocation of Cambodia’s preferential trade status with the European Union and the United States.
Speaking during an annual dinner event with representatives of the media on January 11, Mr Hun Sen said the new policy, dubbed ‘National Independence Policy’, aims to make economic growth less reliant on the European and US markets by facilitating trade through the country’s land border crossings.
As part of that strategy, last week the government also decided to reduce by half the scanning fee for exported and imported containers, a decision that will come into effect in April.
In addition, enterprises engaged in producing, supplying or exporting paddy rice, rice, corn, beans, pepper, cashew nuts, cassava, or rubber are now eligible for exemptions of profit tax prepayments, according to Directive 100. The exemption is valid for the next 5 years, starting this month.
To be eligible, companies’ accounting books must comply with national tax law and accounting regulations. Firms must also be caught up on their tax payments.
Last month, the government also announced that exporters no longer have to produce certificate of origins (CO) at local customs if the document is not required by authorities at the destination.