Legal and Tax Updates

Issue: No. 011P/23 – 5 July 2023

The Royal Government of Cambodia has adopted the Law on Food Safety dated 08 June 2022. This law lays out the conditions and mechanisms on managing and ensuring safety, quality, sanitation and legitimacy of food in all steps of food processing to protect the health and safety of consumers as well as guarantee fair trade in food industry in the Kingdom of Cambodia.

This law includes fundamental elements in ensuring the safety of Cambodia food market by imposing measures onto all food business ranging from retailers, producers, processors, food packaging, advertisers, importer and exporter. In addition, the law has entrusted the Ministry of Commerce in collaboration with other relevant authorities with their rights and duties in respect of the food quality and safety.

Prohibition for Producers, Processors and Food Packaging Businesses

The producers, processors and food packagers are prohibited from producing, processing and packaging of

• unsafe food;
• fraudulent brands, packaged without expiry date or unlawful mark or labeling that is not in accordance with the Cambodia standards on the labeling for packaged food;
• non-disclosure of the identity of producer; and
• unlawful storing or supplying under to relevant laws and regulations.

Prohibition for Wholesalers, Suppliers and Retailers

Wholesalers and suppliers are prohibited from unlawful storing or supplying of food, as well as supplying, wholesaling and retailing:

• of expired food;
• in a manner contrary to the producers’ instruction;
• of unsafe food (or in knowledge that the food is unsafe) or fraudulent brands; or
• from unidentified producer.

Labeling Standards

All packaged food shall be labelled and the label shall:

• contain tracing information;
• Be written in Khmer with regard to the food safety and consumer protection guide; an additional sticker in Khmer can be added in case the original label is in another language;
• Identify substantial information including nutrition facts;
• not include any information or image that is contrary to the label or the requirements for label or mislead or falsify any information by any means;
• Be legible and not be covered by any external packaging, if any.

The law also prohibited all types of advertisement in any forms that are false, deceptive or distort the truth, or fraudulent or misleading regarding the actual quality and safety of the food.

Imported Food

Foods that are imported to the Kingdom of Cambodia shall comply with the requirements under this law and other relevant law and regulation. In the event that the imported foods do not meet the requirements set forth by this law and other law and regulation in force, it shall be exported back, reprocessed, relabeled for reinspection or destroyed.

Penalty

All food businesses such as producers, processors, food packaging business, wholesalers, suppliers, retailers, exporters and importers will be subjected to penalty, administrative or criminal, for violating the law. Such penalties are as follows:

• Written warning
• Suspension or revocation of a permit, certificate or license
• Permanent termination of business
• Interim penalty
• Monetary fines

Disclaimer

The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us:

	SON Sokeng, Partner, Managing Director sokeng.son@sithisak-lawoffice.com +855 12 885 870	He has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He has leaded a legal counsel team to advise and assist ACLEDA Bank Plc. in the process of listing on the Cambodia Securities Exchange (CSX). He has been a team member of a legal counsel team to advise and assist in the IPO process of Phnom Penh Autonomous Port (PPAP). He is currently leading a legal counsel to advise and assist in an IPO of a SME for its proposed listing on the growth board of the CSX.
	NOEUM Sokvichhai, Partner, Head of Corporate, Commercial and Investment Practice Group sokvichhai.noeum@sithisak-lawoffice.com +855 12 826 785	Sokvichhai has more than 6 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, investment incentives & qualified investment project, and labour & employment related issues. Besides extensive compliance knowledge and experiences, he also assists major business in preparing and reviewing various commercial agreements, including but not limited to loan and security documents, join venture, partnership & shareholder agreements, franchise & distribution agreements, service & supply agreements, note subscription, pledge and guarantee agreements and other commercial contracts. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company.

Read in PDF: