What is Cambodia’s latest automobile tariff for 2025? This question has been frequently raised recently due to new changes in tariff agreements between the U.S. and Cambodia. Cambodia currently implements a zero-tariff policy for U.S. imports, but other countries still pay standard rates. For example, importing Chinese vehicles to Cambodia follows these regular tariffs. Below is a detailed explanation of Cambodia’s automobile tariffs.
I. Cambodia’s Automobile Import Tax Structure
Tariff (Import Duty)
- Rate range: 0%–35%, average rate 15%.
- Basis: Calculated on CIF value; specific rates depend on vehicle type and engine displacement. Examples:
- Fuel vehicles (e.g., HS code 870324, displacement >3000ml): Higher tariffs apply. Historical data shows total tax burden for some fuel vehicles can reach 123%.
- Electric vehicles (EVs): Tariff ~63%, significantly lower than fuel vehicles.
Value-Added Tax (VAT)
Rate: 10% (flat).
Basis: CIF value + Tariff + Special Tax.
Special Tax
- Scope: Applied to specific goods (e.g., vehicles, alcohol).
- Rate: 3%–45%, determined by vehicle type and displacement.
- Fuel vehicles: Higher special tax rates (included in the 123% total tax burden).
- EVs: Lower rates (included in the 63% total tax burden).
II. Applicable Tax Rates for Chinese Vehicles Imported to Cambodia
Example calculations for typical vehicle types (based on CIF value of USD 100,000):
| Vehicle Type | Tariff | Special Tax | VAT | Total Tax Burden | Total Tax (USD) |
| Fuel vehicle (displacement>3000ml) | 15%–35% | ~30%–45% | 10% | Up to 123% | ≥223,000 |
| Electric vehicle (EV) | As low as 0%? | Lower | 10% | 63% | ~163,000 |
Notes:
Actual rates for fuel vehicles may be higher due to displacement differences.
EVs enjoy policy support, resulting in lower taxes.
III. Key Considerations for Cambodia’s Automobile Tariffs
Rules of Origin Impact
- Cambodia’s zero-tariff policy for U.S. imports (effective August 1, 2025) only applies to U.S.-origin goods (e.g., used cars). Chinese vehicles still pay standard tariffs.
Policy Updates
- Cambodia is promoting EV adoption via tax incentives: EV total tax burden (63%) is half that of fuel vehicles (123%).
- The U.S. imposes a 19% “reciprocal tariff” on Cambodian goods (effective August 2025), but this does not affect Cambodia’s import tax system.
No Tax Exemption Threshold
- Full taxes apply regardless of import value.
IV. Strategies for Managing Cambodia’s Automobile Tariffs
- Prioritize EV exports: Leverage Cambodia’s low-tax policy for EVs (63% total burden) to reduce costs.
- Localize production to avoid tariffs: Follow models like SAIC or Great Wall (in Thailand/Indonesia) using CKD assembly or direct investment to access ASEAN free-trade benefits.
