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Rajah & Tann Regional Round-Up

your snapshot of key legal developments in Asia

Issue 3 - Jul/Aug/Sep 2022



CAMBODIA

Ban of Signal Boosters and Repeaters that Severely Affect Mobile Services

On 28 July 2022, the Ministry of Post and Telecommunications issued announcement No. 1701 on the Ban of the Use of Signal Boosters and/or Repeaters that Severely Affect Mobile Services.


Pursuant to the announcement, all relevant parties are required to immediately cease the import of signal boosters and/or repeaters that have yet to be granted approval by the Telecommunication Regulator of Cambodia. Households currently using signal boosters and/or repeaters are requested to dismantle, remove, and cease the use of these devices in their respective homes. Non-compliance could subject the parties to penalties pursuant to Article 84 of the Law on Telecommunications.


Additionally, mobile network operators are encouraged to upgrade their equipment and technology as well as construct additional base transceiver stations in order to expand cell coverage and improve quality of service.


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Prakas on Quality of Telecommunications Services

On 19 July 2022, the Ministry of Post and Telecommunications issued Prakas No. 82 on the Quality of Telecommunications Services ("Prakas") to determine key quality indicators, measurement methods and monitoring mechanisms of the quality of telecommunications services.


The determination aims to:


  1. Ensure that information related to telecommunications services quality provided by telecommunications operators is accurate, acceptable and comparable;
  2. Provide information in relation to options, price and quality of the telecommunications services;
  3. Protect consumer interests in receiving quality telecommunications services in accordance with the fee paid;
  4. Provide information to telecommunications operators in order to prepare the plan to enhance their telecommunications services and network;
  5. Ensure telecommunications services quality measurement reports provided by the telecommunications operators are accurate, complete and delivered on time.

The Prakas applies to telecommunications operators who provide mobile phone services, fixed phone services and landline internet services in Cambodia. Under this Prakas, the operators, within 10 months after the Prakas' entry into force, must completely strengthen the quality of their telecommunications services in compliance with the key quality indicators of the telecommunications services quality as stipulated in this Prakas.


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Conditions for Continued Acceptance of Applications for E-Commerce Permit or Licence

On 7 July 2022, the Ministry of Commerce ("MOC") issued Notification No. 1964 MOC on the Application for E-Commerce Permit or License ("Notification").


The MOC used to extend the deadlines of submission of application for E-Commerce permit or licence (the latest deadline being 3 July 2022) without penalty. The Notification states that MOC will continue to accept applications for E-Commerce permit or licence submitted after 3 July 2022 but subject to the following conditions and procedures:


  1. Legal entities, branches of foreign companies, and sole proprietorships operating E-Commerce businesses without the approval from MOC shall apply for E-Commerce permit or license with MOC subject to payment of applicable fine.
  2. Legal entities, branches of foreign companies, and sole proprietorships which have just started or intend to operate E-Commerce businesses may apply for E-Commerce permit or license with MOC without being fined.

Natural persons who have an annual turnover less than the annual turnover of a small taxpayer (approx. US$62,500 to US$400,000) may (i) notify the MOC to obtain exemption on filing the application; or (ii) apply for an E-Commerce permit without being fined if​ such natural person wishes to do so.


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Overview of Arbitral Proceedings in Cambodia

The National Commercial Arbitration Centre of Cambodia ("NCAC") was established in 2006 and has been in operation since 2013. NCAC adopted its first arbitration rules in 2014, which were amended in 2021 ("2021 Rules"). There are various key aspects in the 2021 Rules which  relate to the key stages of arbitral proceedings: (i) commencement of arbitration, (ii) interim stage, (iii) hearings, and (iv) issuance of award.


Commencement of Arbitration


The commencement of arbitration consists of three main steps:


  1. Filing of the notice of arbitration ("Notice") by the Claimant with all supporting information or documents and payment of the registration fee with the General Secretariat of NCAC ("GSNCAC"). The arbitral proceedings commence from the day the GSNCAC receives the complete Notice.
  2. Upon receipt of the complete Notice from the GSNCAC, submission by the Respondent of the notice of response containing the same basic information as the Notice (e.g. identities of parties, the agreed/proposed number of arbitrators), with a statement confirming or denying all or parts of the claims as well as a counterclaim, if there is any; and
  3. Constitution of the tribunal with an odd number of arbitrators (unless agreed otherwise by the parties) following receipt by the GSNCAC of the Notice and notice of response.

Interim Stage


The interim stage includes the preliminary meeting and additional meetings to organise and schedule proceedings for solving the dispute in a timely and cost-efficient manner. Parties must also submit relevant documents including the statement of claim, defence and counterclaim, defence to counterclaim and other supporting documents.


Hearings

 

The hearing date, time and venue shall be notified to the parties at least 15 days before the hearing takes place, after the parties have agreed on the manner of conducting the arbitral proceedings (i.e. an oral hearing or proceeding on the basis of documents-only).


Issuance of Award


A final arbitral award will be issued after the hearing is concluded. However, the Tribunal may also issue an award for interim measures prior to the final award, or a consent award if a settlement has been reached.


For more information, click here to read our Legal Update.


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Cambodia’s New Law on Food Safety

The Law on Food Safety ("Law") setting out the legal framework and mechanisms to regulate safety, quality and sanitation relating to food production and food businesses has come into force.


Food business operators are subject to primary obligations such as (i) obtaining a permit from competent authorities; (ii) ensuring the foods are in compliance with legal requirements; (iii) resolving any food safety-related issues and reporting to authorities in charges immediately; and (iv) cooperating with relevant authorities to implement food safety measures.


All importation and exportation of foods must be in line with the legal requirements set forth in related local laws and regulations and other legal instruments of destination countries (for export products). Failure to comply with the Law will subject the errant business operators to administrative penalties and/or criminal penalties.


For more information, click here to read our Legal Update.


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Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

Rajah & Tann Sok & Heng Law Office 
Vattanac Capital Office Tower
Level 17, No. 66, Preah Monivong Boulevard,
Sangkat Wat Phnom, Khan Daun Penh
120211 Phnom Penh, Cambodia
http://kh.rajahtannasia.com
Contacts:

Heng Chhay
Managing Partner
D +855 23 215 734
F +855 23 726 417
heng.chhay@rajahtann.com

Desmond Wee
Director
D +65 62320474
desmond.wee@rajahtann.com

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