Technical Update

To promote trade facilitation and enhance economic cooperation between the Kingdom of Cambodia and the United States of America, the Royal Government of Cambodia has implemented a 0% customs duty on new goods originating from the United States and directly imported into Cambodia. This preferential tariff aims to reduce import costs, encourage foreign investment, and broaden access to high-quality U.S. products in the Cambodian market.

On 8 August 2025, the following legal instruments were issued to implement this policy:

• Sub-decree No. 139 by the Royal Government of Cambodia

• Prakas No. 632 by the Ministry of Economy and Finance

• Instruction No. 3724/25 by the General Department of Customs and Excise (GDCE)

These instruments formally establish the application of a 0% customs duty for qualifying goods, effective from the date of issuance.

Important: This benefit applies only to new goods. Used goods remain subject to the applicable standard customs duty rates.

Instruction No. 3724/25 outlines the customs procedures and conditions for importing eligible goods from the United States to Cambodia. It provides official definitions, requirements for 0% duty eligibility, and specific customs processes.

All customs units, importers, and relevant stakeholders are required to fully implement these procedures starting 8 August 2025.

Commentary 

The introduction of a 0% customs duty on eligible U.S.-origin goods marks a significant milestone in strengthening Cambodia–U.S. trade relations. By reducing import costs, this policy is expected to:

• Promote greater access to high-quality U.S. goods for Cambodian businesses and consumers,

• Encourage diversification of supply chains,

• Support domestic industries through improved availability of raw materials and equipment, and

• Create a more competitive and investment-friendly trade environment.

This initiative reflects the Royal Government of Cambodia’s ongoing commitment to trade liberalization, economic growth, and integration into the global market.

KPMG in Cambodia is well-positioned to assist businesses in navigating and complying with the new customs duty exemption framework. For personalized support, please reach out to our Trade & Customs team.