The Cambodia National Assembly has recently adopted the Law on Trade Remedies (“theLaw”) on 12 October 2017, governing the anti-dumping, countervailing measures and safeguards all trade activities in Cambodia in conformity to the Article VI of the General Agreement on Tariffs and Trade 1994.
The Law comprising of six chapters and 44 articles, sets out the principles, mechanisms, procedures, and rules related to trade remedies. Article 5 of the Law highlights the need for the National Committee of Trade Remedies (“the Committee”) to perform all the tasks related to trade remedies. The organisation and functioning of the Committee will be determined by a subsequent Sub-Decree.
The definition of the dumped product, normal value, export price, and the procedure to impose anti-dumping measures are provided in Chapter 3 of the Law. The imported product is considered as being dumped when it is under investigation and is being sold at a price lower than its normal price in the country of origin. If the like product is being sold in the country of origin, the normal value shall be determined by comparing the price of the like product in the ordinary course of trade for consumer in the country of origin; and if there are no sales of the like product in the country of origin, or if there are sales in the country of origin but the price could not be used to make the comparison due to either low sales volume or inappropriate market then under the Law, the Committee can use the following methods to determine the normal value based on the:
- price at which the like product is sold in the third country; and
- cost of production, plus selling, general, and administrative expenses, and profits (known as “constructed value”).
The anti-dumping duty cannot be imposed unless there is a material injury to the domestic product caused by the dumped product. The Committee will determine the material injury by conducting a fair investigation and examination on the positive evidence of the volume and price effects of dumped product, as well as the consequences of the dumped product on the domestic product. The Committee can commence the investigation on dumped product with a written application filed by Cambodian industry or at their sole discretion. The detailed procedures of investigation will be determined by a subsequent Sub-Decree.
The Law provides safeguard measures and procedures from Articles 30 to 42 where the Committee will take into account and conduct a fair evaluation on all of related factors such as the increase of imported product, the material injury to the domestic industry along with the causal link of the dumped product and domestic product. The Sub-Decree on subsidies and countervailing measures will be issued in accordance with this Law and World Trade Organization’s Agreement on Subsidies and Countervailing Measures. Lastly, related parties who are not satisfied with the imposition of duty by the Committee, can appeal to the competent court against the decision of the Committee no later than 30 days after the date of the decision being issued in the Committee’s Newsletter.
If you have any questions or require any additional information, please contact Nith Niteyanaor the ZICO Law partner you usually deal with.
This alert is for general information only and is not a substitute for legal advice.
 Trade Remedies Law, art 3.
 ibid, art 6.
 ibid, art 7.
 ibid, art 8.
 ibid, art 12.
 Trade Remedies Law, art 43.