1. Basic situation

The Kingdom of Cambodia (referred to as Cambodia) is located on the Indochina Peninsula. It borders Thailand in the west and northwest, Laos in the northeast, Vietnam in the east and southeast, and faces the Gulf of Siam in the south. The capital is Phnom Penh. It has a land area of 180,000 square kilometers and a population of approximately 17.42 million. According to Cambodia officials, the per capita GDP of Cambodia in 2024 will be US$2713, an increase of nearly 9 times compared with the 2000 level. According to statistics from China Customs, in 2024, the trade import and export volume between China and Cambodia will be US$17.83 billion, a year-on-year increase of 20.3%. Among them, China's exports to Cambodia were approximately US$15.34 billion, a year-on-year increase of 20.3%; China's imports from Cambodia were approximately US$2.50 billion, a year-on-year increase of 20.7%.

Cambodia is a country with relatively rich natural resources. Currently, there are more than 20 kinds of mineral deposits with a forest coverage rate of 46.9%. It is mainly rich in high-grade woods such as teak, ironwood, rosewood, and ebony, as well as a variety of bamboos, with wood reserves of about 1.1 billion cubic meters.

2. Automobile market situation

Cambodia is a left-hand driving country, with about 1.9 million cars and about 21 cars per 1,000 people. About 60,000 cars are imported every year, 90% of which are second-hand cars, and only 10% are new cars. Driven by steady GDP growth and consumer demand, Cambodia's automobile market has continued to grow in recent years. According to statistics from the Ministry of Public Works and Transport of Cambodia, a total of 413,000 vehicles will be registered in 2024. Among them, motorcycles have the largest number, with a total of 354,000. This was followed by 55,000 light vehicles and 5841 heavy vehicles. Compared with 2023, registrations of motorcycles and light vehicles will increase in 2024, and registrations of heavy vehicles will drop by 14%. According to statistics from the Ministry of Commerce, in the first 11 months of 2024, Cambodia's automobile imports reached US$910 million, a year-on-year increase of 7%. At the same time, fuel imports increased significantly. In the first 11 months of 2024, fuel imports were US$2.17 billion, a year-on-year increase of 11%. Among them, diesel imports were US$1.3 billion, an increase of 10%; gasoline imports were US$870 million, an increase of 13%. A World Bank report shows that the total cost of owning a new electric vehicle in Cambodia (including car purchase costs and power costs) is 14% higher than that of a new fuel vehicle and 52% higher than that of a used fuel vehicle.

2019-2024 New car sales in Cambodia in

Data source: Ministry of Public Works and Transport of Cambodia, Focus 2Move

In January 2024, the Cambodia government officially promulgated the "Roadmap for Developing and Attracting Investment in the Automobile Industry." According to the roadmap, initial development will focus on the assembly of export components, such as labor-intensive industries such as wire harnesses and seats; the long-term goal is to build it into an auto parts manufacturing center. The automobile assembly industry in Cambodia is gradually developing. Six car assembly plants have been approved, including Ford, Toyota, Hyundai and Japan's Isuzu. In addition, China electric vehicle manufacturer BYD announced that it will invest in an electric vehicle assembly plant in Cambodia.

3. Policies and regulations on used car import

1. Import policy

(1)According to the law, cars used in Cambodia must be left-handed vehicles. However, due to historical reasons, there are some right-hand steering vehicles in Cambodia, and right-hand steering vehicles use special license plates.

(2)Existing right-hand steering vehicles can continue to be used, but right-hand steering vehicles are not allowed to continue to be imported.

(3)Cambodia does not recommend importing used cars manufactured before 2000. There will be an annual inspection requirement for used cars produced before 2000, while other vehicles will be inspected every two years.

(4)Vehicle emissions are required to meet Euro II standards during annual inspection.

2. Tax policy

Cambodia's used car import tax mainly consists of tariffs, special taxes, value-added tax, etc. The tariff is 35%, the special tax is 30%-70%, and the value-added tax is 10%. The specific calculation method of import tax on used cars in Cambodia is as follows:

Import tax =CIF(cost + freight + insurance)× tax rate (customs duty + special tax + value-added tax)

The Cambodia government has announced that it will reduce special taxes on vehicles (including new and used cars) starting from March 2021 to revitalize the automobile market. Specific provisions are as follows:

(1)For private cars with a displacement of no more than 3000ml, the special tax will be reduced by 10%, and will be reduced from 30% to 20% or from 60% to 50% based on the actual displacement of the vehicle.

(2)The special tax on private cars with a displacement of more than 3000ml will be reduced by 15%, from 65% to 50% and from 70% to 55%, depending on specific circumstances.

(3)The special tax on pure electric vehicles for domestic and passenger use will be reduced from 30% to 10%.

(4)The special tax on semitrailer was reduced from 40% to 25%.

(5)The special tax on large trucks weighing more than 5 tons, as well as dump trucks, cranes and other specialized vehicles, will be reduced from 40% to 30%.

3. Documents required for import

● Automobile import license

● Original bill of lading (including VIN code, engine number, displacement, production date, brand and model number, etc.)

● Import and export tariff declaration form

● Declaration price (IV price) certification (apply to Phnom Penh Port Customs and Excise Administration)

● Certificate of origin

Source: "China Used Car Export Country Guidelines2024"

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