Welcome to this edition of DFDL’s Cambodia Law Update. In this issue we present Cambodian regulations and information touching on the following:
- Amendments to Sub-Decree № 42 ANKr.BK, on Urbanization of the Capital, Municipalities, and Urban Areas
- The new Law on Control of Tobacco Products
- Formalities and procedures for registering changes to business enterprises
- Notification on information required to be included in commercial invoices related to importation of goods
- Amendments to the Law on Electricity
Amendments to Articles 30, 34, 38, 50, 66, 74 and 82 of Sub-decree № 42 Ankr.bk, dated 3 April 2015, on Urbanization of the Capital, Municipalities and Urban Areas, Sub-decree № 76 (RGC) 9 June 2015
The amendments to Sub-decree № 42 address the following:
Article 30: Clarification as to determination of height of construction.
Article 34: Standards for minimum number of parking spaces must be complied with.
Article 38: Intervals between one boulevard to another, or from one road to another, and their size as stated in article 37, must be in accordance with the National Policy on Spatial Planning and shall be determined by a separate legal document.
Article 50: Clarification on urban development projects implemented in order to convert the land use types, readjust land use, and develop urban/municipal areas such as land consolidation, or land sub-division in compliance with regulations on urbanization and ensuring minimum standards of land use, public infrastructure, and public spaces, as well as environmental, economic and social conditions.
Article 66: Clarifying that the Ministry of Land Management, Urban Planning and Construction or other relevant authorities who issued licenses permitting development, construction, reparation, demolition, and licenses for starting and closing a construction site, have jurisdiction for imposing penalties on such licensees.
Article 74: Addressing the issue of construction owners or property developers refusing to cease construction according to an order of the competent authority.
Article 82: Providing that income from service fees stated in Article 81 shall be allocated partially to the national budget, partially to support urbanization and construction technical operation of the Ministry of Land Management, Urban Planning, and Construction, and partially to relevant sub-national administration.
Promulgation of the Law on Control of Tobacco Products, Royal Kram № NS/RKM/0515/004 (Royal Palace), 18 May 2015
This Law has the stated aim of protecting public health and reducing the impacts on health, economy, society and environment which arise out of the use of tobacco products. The objectives of the law are as follows: (i) to determine the measures for managing and controlling tobacco products; (ii) to raise awareness and increase participation of the public about the danger of tobacco product consumption; and (iii) to cooperate with various ministries, national and international institutions, and partner organizations in order to promote education about and reduce the consumption of tobacco products.
This law extends the scope of implementation on all types of tobacco products, which are manufactured domestically or which are imported from foreign countries, and are distributed, sold and consumed in Cambodia. The Ministry of Health is the competent entity to control all types of activities in relation to tobacco products and shall be the primary institution, acting as the communication institution between the Royal Government of Cambodia and those state parties of the WHO Convention on Tobacco Control and the Secretariat of the Convention as well as relevant national and international organizations. The Royal Government of Cambodia is to establish the Committee for Tobacco Product Control in order to educate and reduce tobacco product consumption.
Domestic manufacturers and importers of all types of tobacco products for distribution and sale in Cambodia will be required to print health-warning messages in Khmer language and in pictures on the packaging of tobacco products about the danger of tobacco product consumption. Advertising tobacco products via radio, television, newspapers, magazines, and other means are prohibited, as are such advertisements on sign boards, billboards, paintings, vehicles, etc. Further, tobacco products may not be shown in sponsorship advertisements at concerts, sporting events, or other public events.
This law will be further implemented by Sub-decree. The Ministry of Health is obligated to assign its specialized officials as tobacco product inspectors, to monitor, oversee and enforce the implementation of this law. Legal documents/judicial norms related to the control of tobacco products in force shall be valid until the judicial norms are in place.
Formalities and Procedures for Registering Changes to Business Enterprises, Prakas № 142 (MOC) 3 June 2015
This Prakas requires merchants, general partners, founders, or each director of commercial companies to be responsible for the implementation of commercial registration, filing/deposit and dissemination/ publication which is required by law. Merchants, general partners, founders, or each director shall be a signatory on the application for commercial register regarding the modification upon the registration, shall provide the required documents for submission to the Department of Commercial Registration.
The following changes to business enterprises must be registered: (i) change of company name; (ii) increase, decrease, or change the purposes, objectives, or undertakings of the company; (iii) changing in shareholding and changing in distribution of shares between classes of; (iv) changes in dividends payable on any class of shares; (v) increase of capital by creation of new class; (vi) decrease of stated capital by reduction in the par value of any class or series of shares or the authorized shares; (vii) change of the duration of the existence of the company; (viii) change of the registered office; (ix) change of definition of quorum; (x) adding any provisions to the articles; and (xi) transfer or sale of shares.
Notification on Minimum Information on Customs Commercial Invoice, Instructional Letter № 851 (GDCE), 26 June 2015
On 26 June 2015, the General Department of Customs and Excise (“GDCE”) of Cambodia issued Instructional Letter № 851 to all the customs departments and branches of the GDCE. It prescribes the minimum required information on commercial invoices for importation purposes.
As instructed in the letter, the commercial invoice (“Invoice”) must contain the following information:
- Identity of the exporter or seller including name, full address, telephone/fax and email address (if any);
- Identity of the importer or buyer including name, Tax identification number, full address, telephone/ fax number and functioning email address;
- Invoice Number and date of Invoice
- Description of the imported goods which would allow the application of the correct customs tariffs;
- Quantity of the imported goods;
- Value of the imported goods; and
- Country of origin.
If the commercial invoice does not contain all of the information above, the importer or buyer is responsible for providing the missing data.
This instruction will be implemented starting 1 January 2016 onward.
Promulgation of the Law on Amendment to Articles 3, 4, 5, 26, 27, 28, 42 and 74 of the Electricity Law of Cambodia, Royal Kram № NS/RKM/0515/005 (Royal Palace) 18 May 2015
This Royal Kram amends the Electricity Law of Cambodia, dated 2 February 2001, and the Law on Amendme
nt to the Electricity Law of Cambodia, dated 22 June 2007. Setting and administrating government policies, strategies and planning in the power sector are under the Ministry of Mines and Energy. The guarantee for provision of electricity services and for use of electricity performance in an efficient, qualitative, sustainable and transparent manner is the responsibility of the Electricity Authority of Cambodia.
The Ministry of Mines and Energy is obligated to provide the Electricity Authority of Cambodia policies, strategies, planning of power sector and its decisions on: (i) investments in the rehabilitation and development of power sector in the short, medium and long term; (ii) restructuring, private sector participation and privatization of public enterprises/utilities; (iii) promotion of the use of indigenous energy resources in the generation of electricity; (iv) planning and agreements on the export and import of electricity; (v) subsidies to specific classes of customers and priorities regarding consumers of electricity; (vi) promotion of efficiency in generation, transmission, distribution and consumption of electricity and action taken to create a comprehensive electricity conservation program for Cambodia; and (vii) electricity sector emergency and energy security strategies.
The Ministry of Mines and Energy is required to transfer roles and duties to be assigned to the Electricity Authority of Cambodia under this law in an orderly manner in accordance with appropriate procedures as soon as the Electricity Authority of Cambodia is fully operational.
Head of Regulatory & Compliance; Senior Adviser, Corporate & Commercial Practice Group
* The information contained in this legal update is provided for information purposes only, and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.