I am delighted to share the news of the MoU signing between Cambodia Post and the General Department of Customs and Excise (or GDCE) for the implementation of the Electronic Advanced Data (EAD), a stepping stone toward allowing the advance sharing of data electronically between Cambodia Post and customs, so to expedite the customs clearance process of int’l postal shipments.

E-commerce activities have trended upward significantly due to technological and digital advancements. This has led to the flourishing of small packages trading across borders. As far as cross-border e-commerce is concerned, the postal operator and Customs administration are two key players and are at the forefront of Cambodia’s image in the trade chain. The postal network allows MSMEs to participate in e-commerce by giving them an affordable and direct means to ship merchandise to customers and reducing the need for them to interact with distributors, customs brokers, and retailers. The fast-growing volumes of cross-border e-commerce shipments present a number of challenges to Customs to ensure rapid release and clearance while managing safety and security risks, efficient revenue collection, and statistical analysis.

Recognizing this, the Cambodian government aims to elevate the adoption and application of modern ICT to customs processes and postal services applying to postal shipments, specifically on the EAD, or the exchanging of standardized postal goods declaration information between ASYCUDAWorld of GDCE and Customs Declaration System (CDS) of Cambodia Post.

Advanced sharing of shipment information electronically is critical in cross-border trade facilitation. The provision of electronic exchange of advance information between customs administrations and relevant border agencies is key to countering the transport of counterfeit and prohibited objects, drugs, and other similar dangerous goods in the global supply chain, and minimizing cross-border control mechanisms and cutting unnecessary procedures that hinder traders. This means allowing customs sufficient time to process the data of the shipments against risk selection criteria before their arrival/departure and enabling them to provide pre-arrival / pre-departure advice about the action to be taken with respect to any given shipment.

So, congratulations to Cambodia Post and GDCE and I must say I have been very much impressed by the level of commitment and engagement of our officials at both organizations who have been working hard and efficiently in bringing us to where we are today.

My team at Swisscontact implementing the SeT4SME Project of the Global Alliance for Trade Facilitation is proud to have supported the EAD development alongside Cambodia’s Ministry of Commerce through its Go4eCAM Project and other key partners.

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The General Department of Customs and Excise (GDCE) signed a Memorandum of Understanding (MoU) with Cambodia Post to streamline tax collections and document verifications through automation.

Kun Nhem, Director General of GDCE, on Friday, signed the MoU with Then Samvisoth, Director General of Cambodia Post on ‘The Management and Exchange of Postage Package Information,’ a press release by GDCE said.

Representatives of the Ministry of Commerce, the Global Alliance for Trade Facilitation (GATF), UNCTAD, and the Universal Postal Union (UPU) participated in the signing ceremony online along with other officials present at the conference hall of GDCE.

Nhem said the MoU was signed on the guidance of Aun Pornmoniroth, Deputy Prime Minister and Minister of Economy and Finance, to strengthen cross-border e-commerce management.

He added that as e-commerce transactions are currently increasing and becoming more complex, combining the automation system of the two institutions can exchange, analyze and manage postal information to strengthen tax compliance and also verification of licences, permits and certificates.

Samvisoth said the automation system will remove current obstacles in line with the government’s policy to promote e-commerce.

Samvisoth added that the Automated System for Customs Data (ASYCUDA) integration project of the GDCE and the Customs Declaration System (CDS) of the Cambodia Post will support e-commerce in accordance with the best international practices and the guidelines of the World Customs Organisation (WCO) and the UPU.

Nhem, meanwhile, appreciated the support of the Global Alliance for Trade Facilitation (GATF) through the Small Package E-Trade for Small and Medium Enterprises (SeT4SME) project and other partners including Swisscontact, UNCTAD, and the UPU.

SeT4SME is a two-year project from 2021-2023 for the GATF, implemented by Swisscontact in partnership with the Ministry of Commerce. The project aims to support Cambodia in improving its trade performance and driving inclusive growth in the country by enhancing trade facilitation with more transparency.

This article first appeared in the Khmer Times’ Business Issue: July 03, 2023.