Legal and Tax Updates

Issue: No. 027P/21 – 25 June 2021

Since 2017, the Ministry of Industry, Science, Technology & Innovation (“MISTI”) has introduced the use of Cambodian Quality Products Label (“CQP Label”) on Cambodian products. By then, a guideline on application procedure was also issued. However, only until February 2021, the application starts to be opened.

Based on MISTI, CQP Label is to promote domestic products by strengthening the quality and safety of the products and compliance with standards in order that Cambodian products can penetrate into modern market and to provide more confidence to users and customers. Despite of this, the use of this label is still on a voluntary basis.

Pursuant to the Guideline No.3093 MIH.2017, in order to obtain this CQP Label, the owner of factories, enterprises, and handicrafts shall fulfill the following conditions:

• The factories, enterprises, and handicrafts shall hold “Prakas on Establishment of Factory, Establishment, and Handicraft” and a “Certificate of Operation Factory, Establishment, and Handicraft” from MISTI;
• The Product shall obtain a “License for the Use of Product Registration Mark (ច.ប.ផ)” or Certificate​ of conformity with standards from Institute Standards of Cambodia; and
• The Product shall obtain a Weight and Measurement Certificate from National Metrology Center.

With regards to the procedure of applying for CQP Label, the applicant shall submit the application form and required documents to MISTI’s One Window Service. If all the requirements are satisfied, MISTI will issue a certificate with validity of 3 (three) years within 35 (thirty-five) working days after receiving the complete and correct set of documents. The applicant who wishes to renew the certificate shall submit the application within 60 (sixty) days prior to the expiration date of the certificate. However, if the owner of the factory, enterprise, and handicraft fails to comply with the terms and conditions of MISTI, the Certificate will be revoked.

We hope that the above legal update is helpful for your business decision and give you more confidence for investment.

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	Sokeng has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He advised and assisted various companies in various legal compliance issues, major investment projects and in conducting legal due diligence for major M&A and IPO projects. He has led many legal counsel teams to advise and assist ACLEDA Bank Plc., Phnom Penh Autonomous Port and other SMEs in the process of listing and proposed listing on the Cambodia Securities Exchange (CSX).
	NOEUM Sokvichhai, Partner, Head of Corporate, Commercial and Investment Practice Group sokvichhai.noeum@sithisak-lawoffice.com +855 12 826 785	Atty. 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. Sokvichhai also assists major business in preparing various commercial agreements. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company.

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