US calls on government to inspect SSEZ over tax avoidance

The US Embassy on Friday called on the Cambodian government to look closely at governance and compliance issues at the majority Chinese-owned Sihanoukville Special Economic Zone (SSEZ) over claims that some Chinese companies are using the zone to avoid tariffs on transshipped goods to the US.

Spokeswoman Emily Zeeberg wrote to Khmer Times on Friday that since 2017, there have been two instances where companies operating out of the Sihanoukville Special Economic Zone (SEZ) attempted to evade duties on products being exported to the United States. She said that the goods in question included glycine and steel pipe fittings.

“In both cases, U.S. officials conducted on-site inspections in the Sihanoukville SEZ and determined that, although being represented as Cambodian, the goods in question were of Chinese origin on importation into the United States,” she wrote.
She added under U.S. customs and trade law, those companies found to be importing the transshipped goods were assessed with anti-dumping duties—“The United States remains committed to promoting free, fair, and reciprocal trade.”

“The United States will aggressively pursue allegations of duty evasion and utilize all available legal tools, including civil and criminal penalties or other enforcement actions, to deter violators of U.S. customs and trade laws,” she wrote. “We call on Cambodian government authorities to look closely at governance and compliance issues at the Sihanoukville SEZ.”