Legal and Tax Updates

Legal Update: Instruction on Land Transport Business Activities in Cambodia

Recently, the Ministry of Public Works and Transport (“MPWT”) has issued an Instruction No. 367 dated 11 June 2020 on Domestic Land Transport Business Activities (“Instruction”).

This Instruction is intended to ensure that all companies and vehicles operating land transport of passengers and goods in the Kingdom of Cambodia must obtain a valid and legal permit or license or certificate. This is to comply with the Prakas No. 343 dated 06 October 2017 on Permit Requirements and Procedure for Vehicles used in Domestic Land Transport Business (“Prakas 343”) and the Prakas No.344 dated 06 October 2017 on Requirements and Procedure for Domestic Transport Operations (“Prakas 344”) of MPWT.

Remarkably, the Prakas 343 mentions that the owners of vehicles and trailers used for Land Transport Business Activities shall have and bring along with an in-country land transport business permit (“Permit”) all the time while travelling. The Permit is valid for one year from the issuance date. To receive this Permit, any legal entity, individual, or representative must file an application via the MPWT’s online system, with the General Department of Land Transport (“GDLT”).

Whereas, the Prakas 344 focuses on goods or passengers transport companies, agents providing transport services and car rental services in Cambodia that must obtain a certificate of registration and a domestic transport operation license from the MPWT. A domestic transport operation license is valid for two years while the certificate of registration of domestic transport operation is permanently valid. The application for the above-mentioned licenses must be filed, via the MPWT’s online system, with the GDLT.

Be informed that a company is not eligible for applying an in-country land transport business permit if it does not hold a valid domestic transport operation license.

Therefore, to manage land transport business activities in Cambodia with highly responsible manner, safety and quality, GDLT sets out instructions as follows:

1)  Companies that have not registered for domestic transport operations shall apply for registration of its business in accordance with the applicable law and regulations;

2) Any expired certificate of domestic transport operation shall be renewed on the determined date;

3) Any expired permit of vehicles for domestic transport operation shall be renewed on the determined date.

In the event that any domestic transport business operators has no any registered certificate issued by MPWT, they shall be fully liable before the law. Any companies or vehicles with expired permits or licenses shall be subject to penalty from 01 July 2020 onward.

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 at contact@sithisak-lawoffice.com or (+855) 23 6373 168.

Read in : PDF