GOVERNMENT-DONOR COORDINATION COMMITTEE (GDCC)

TWG: Private Sector Development and Trade

TWG Action Plan

144. The TWG did not report on this matter.

Joint Monitoring Indicators

145. The draft Law on Concessions submitted to the National Assembly. All new Private Participation in infrastructure (PPI) projects abides by the principles of transparency and accountability in the draft specified Law (2006). The draft Law on Concession, adopted by the Cabinet in July 2005, has been submitted to the NA and since is waiting for debate and adoption. On 19 September 2006, the CDC has written a letter to the Council of Ministers seeking its assistance to request the NA debating the draft Law.

146. Adopt and use a Single Administrative Document (SAD) under the Asycuda system (March 2006). Various activities have been carried out: (i) translation of SAD and its explanatory notes, codifications, reference tables (about 30); (ii) printing SAD (import/export forms); (iii) training for traders; (iv) training for customs officers; (v) plan to introduce SAD (paper form) before ASYCUDA (electronic form) from April 2007.

147. Adopt and publish the inter-agency administrative agreements among all the relevant agencies on procedures and guideline for the inspection and clearance of imported and exported goods (March 2006). This activity has been delayed and awaits the experts. Experts will commence their works on January 22, 2007. Their mission will last until February 26, 2007. This delay is caused by the delay in the selection of a qualified consulting firm from Australia.

148. Introduce a pilot Single Window (SW) for trade facilitation at the Port Authority of Sihanoukville (PAS) (2007). This activity has also been delayed due to different stances between RGC and WB.

149. Draft and adopt a sub-decree on trade facilitation through a risk management approach to inspections and clearance of imports and exports of goods, specifying the Custom and Excise Department (CED) as the lead agency for all types of inspections (documentary, physical and electronic) (March 2006). Various activities have been implemented: (i) sub-decree 21 ANKR.BK dated 01 March 2006 was established; (ii) Inter-ministerial Coordination WG on RM has been established; (iii) risk Management and Audit Office has been created in the Customs and Excise Department; (iv) Risk Management Steering Group in customs is working on development of risk criteria, indicators, profiling, compilation of seizure data etc.

150. Prepare and adopt regulations (Prakas) clarifying registration procedures and documentary requirements, specifying procedures for amending Articles of Incorporation, clarifying the minimum requirements for Articles of Incorporation based on the Law on Commercial Enterprises, specifying requirements and procedures for annual declarations, and establishing procedures for decentralization of business registration. Four ministerial decisions have been made: (i) Announcement No. 2106 MOC/LAD dated September 08, 2006, regarding the Implementation of the Plan of Reform of company incorporation and decentralization of business registration; (ii) Prakas No. 120 MOC/SM2006 dated June 20, 2006 specifying procedures on the Amendment of Articles of Incorporation; (iii) Announcement No. 1415 MOC/SM2006 dated June 20, 2006 clarifying the 13 important requirements for Articles of Incorporation; (iv) Prakas No. 149 MOC/ SM 2006 dated July 05, 2006 specifying requirements and procedures for annual declarations.

151. Streamline and simplify all license requirements impacting SMEs. SME Development Framework implementation rests on the following factors:

Regulatory and legal framework: company registration; license review and recourse mechanism; commercial legal framework; smuggling.
Access to finance: collateral and land titling; leasing law; credit information sharing; simplified accounting system for SMEs.
SME support activities: business development services; access to markets; technology and human resource upgrading; linkages.

Under the SME Development Framework, which was approved by the Royal Government on 29 July 2005, the SME Sub-committee has authorized the SME Secretariat to take the lead in the design of a Licensing Review Mechanism. On June 7, 2006, the SME Sub-committee approved a plan for establishment of a Licensing Review Mechanism along with a Manual for carrying out licensing reviews and was adopted by the Royal Government on 27 Oct 2006. The generic term of license is used in this plan to cover all regulatory instruments that a business needs in order to operate its activity. License Review Manual is a tool providing the criteria and methodology for reviewing licenses. The SME Sub-committee has also approved a recourse mechanism for businesses to file grievances regarding disputes resulting from licensing and inspection and to have decision reviewed.

A major constraint to SME development continue to be a limited access to finance resulting from underdeveloped legal, regulatory and informal underpinnings of the financial sector.

152. Establish and make fully operational the “one-stop service” (OSS) in all Special Economic Zones (SEZs) consistent with the trade facilitation reforms to reduce both the time for, and cost of, trade clearance procedures, including the adoption of the SAD and the adoption of a risk management approach to inspections and clearance of goods (2006). A one-stop service has been operational at the Manhattan SEZ in Baveth-Svayrieng. WB has dispatched representatives to visit and assess the functioning of the said OSS.