Phnom Penh (FN), Feb. 13 – The Ministry of Commerce, on Thursday, announced that only 40 among 9,000 Cambodian products are to be affected by the new decision of the European Commission.

“Only 40 items will be taxes. The remaining 9,000 are still subject to EU preferential treatment under the EBA with the aims to continue assisting Cambodia to diversify her economy, keep employment, and source of income for the workers and their families,” the ministry said in the press release.

In accordance with the provisions of the EU General Guarantee Framework, the proposed 40-item temporary tax concession will be submitted to the European Council and the European Parliament for a review of the form and legal timeline two months from 12 February 2020. In this regard, the European Parliament has the right to object to the European Commission's request for a moratorium. If necessary, the European Parliament could take another two months to consider.

According to the Ministry of Commerce, in consultation with factory representatives who are producing and exporting 40 products to the market, if the temporary tax concession is decided by 2020, those factories will still be able to continue its production in Cambodia to export to the European market.

It is worth noting that on 12 February 2020, the European Commission issued a decision to partially suspend the EBA tax preferences from Cambodia for certain products in the garment, footwear, traveling products, and cane sugar.
=FRESH NEWS