GDCE urges firms to cooperate to get through Covid-19, EBA crises
GDCE urges firms to cooperate to get through Covid-19, EBA crises
With the Kingdom facing serious internal and external challenges, the director of the General Department of Customs and Excise (GDCE) has called on private companies to work closely with his department to reduce the cost of shipping services.During a meeting last week with freight forwarders and other companies in the sector, Kun Nhim asked for greater cooperation to overcome the crisis brought about by the Covid-19 pandemic and the EU’s decision to partially remove Cambodia’s Everything But Arms (EBA) scheme.
“I call on all players – the Freight Forwarders Association, the Cambodia Trucking Association and port authorities – to join forces with GDCE to find and implement measures that will reduce freight costs,” he said.
To do so, the government recently reduced the terminal handling charge in Sihanoukville Autonomous Port (PAS) and Phnom Penh Autonomous Port (PPAP) by $5 per twenty-foot equivalent unit (TEU).
The container imbalance charge has been slashed by $12 for a 20-foot container and $40 for a 40-foot one.
Despite the recent cuts, Cambodia Freight Forwarders Association (CAMFFA) president Sin Chanthy told The Post that the terminal handling charge and the container imbalance charge are still high compared to neighbouring countries like Thailand and Vietnam.
Chanthy said the terminal handling charge was now $180 for a 20-foot container and $240 for a 40-foot container. The container imbalance charge was $200 for a 20-foot container and $300 for a 40-foot container.
“We have asked the government to reduce these fees further, and we are now waiting for a response. These high fees significantly reduce our competitiveness,” Chanthy said.
Last year, PAS handled 6.5 million tonnes of cargo – an increase of 22.6 per cent. Container traffic rose by 17 per cent to 633,099 TEUs.
