Cambodia Investment Review
The Cambodian government has issued a new Inter-Ministerial Prakas requiring producers and exporters to obtain an official certification verifying the Cambodian origin of goods exported to the United States. The regulation, signed by the Ministry of Economy and Finance and the Ministry of Commerce on April 30, 2025, will take effect on May 12, 2025, and applies to a broad range of products identified under 126 Harmonized System (HS) codes.
The move comes amid heightened trade tensions with the United States following allegations of dumping practices involving solar panels exported from Cambodia. In response, the U.S. has implemented punitive tariffs exceeding 3,500% on certain solar products and has temporarily paused the introduction of a 49% tariff on Cambodian goods for 90 days pending further negotiations.
Mandatory Origin Certification Letter for U.S. Exports
Under the new regulation, producers and exporters must apply for an Origin Certification Letter (OCL) from the Ministry of Commerce. The OCL must be attached to the Customs Declaration for shipments to the United States. There are no public service fees associated with the application.
The certification process includes an initial inspection of production facilities to verify compliance with origin rules. Applicants must first register with the Ministry of Commerce’s CO Automation System and submit relevant documentation, including production details, invoices, and raw material sourcing.
The list of regulated goods includes categories such as plastics, apparel, electronics, and renewable energy equipment.
Clint O’Connell, Partner and Managing Director at DFDL Cambodia, said the measure aims to strengthen compliance standards and maintain Cambodia’s access to key export markets.
“The Origin Certification Letter requirement reflects Cambodia’s intention to proactively address concerns raised by the U.S. and to preserve trade privileges,” O’Connell said. “It’s also a clear message that Cambodia is serious about preventing origin fraud and ensuring that its exports meet international standards.”
Enhanced Oversight and Investigations
The Inter-Ministerial Prakas mandates cooperation between the General Department of Customs and Excise (GDCE) and the General Directorate of Trade Support Services (GDTSS). These bodies will share data, conduct joint inspections, and work with U.S. authorities in verifying the origin of goods.
In cases of suspected violations—such as concealment of transshipment operations or mislabeling of products—joint investigations may be launched, and offenders will face penalties as outlined in Cambodia’s Law on Rules of Origin and Law on Customs.
“The compliance burden is real, but it’s necessary,” O’Connell added. “Exporters found to be sidestepping origin rules may face serious legal and reputational consequences.”
U.S.-Cambodia Trade Talks Scheduled
Further bilateral discussions between Cambodian and U.S. officials are scheduled for May 14–15, 2025, in Washington D.C. These talks are expected to address not only the paused 49% tariff but also broader issues such as non-tariff barriers and the transshipment of goods originating from third countries, particularly China.
The new rules are viewed as part of Cambodia’s broader effort to align its trade practices with international norms, protect its manufacturing sector, and demonstrate a willingness to comply with U.S. trade enforcement mechanisms.
“This is a strategic response to both the immediate pressure from the U.S. and the long-term need to uphold integrity in Cambodian exports,” O’Connell said. “It also signals to the global market that Cambodia is taking compliance seriously.”
Next Steps for Exporters
With the Prakas taking effect soon, Cambodian producers and exporters are advised to begin the registration and certification process immediately to avoid delays or penalties.
DFDL Cambodia is currently assisting businesses in navigating the new regulatory framework and ensuring compliance with the updated export procedures.
For more information or legal support, contact DFDL Cambodia:
📧 clint.oconnell@dfdl.com
📞 +855 23 210 400
🌐 www.dfdl.com
