Cambodia has announced that it is reducing tariffs on certain lubricant products effective January 1, 2021.

The special tariff rate on 16 tariff lines of “lubricants used in the textile, dishwasher and bicycle sectors” will be reduced from 10% to zero, while eight tariff lines of “lubricants involved in production” will see the rate reduced from 25% to zero, the Phnom Penh Post reported.

The government’s decision to reduce customs tariff rates and special tariffs on selected imported goods and raw materials to boost investor sentiment out of the Covid-19 doldrums.

Customs duty on 13 tariff lines of raw materials for food and beverage production and solar systems will be reduced from 7% to zero, while 56 tariff lines of “processing machines and tools used in various production chains” will see customs duty rates reduced from 15% to zero. Also, 60 tariff lines of “major commodities and processing machines used in various production chains” will be reduced from 15% to 7%.

With a population of about 16.2 million people, Cambodia has one of the fastest growing economies in Southeast Asia, with growth averaging 7.6% over the last decade.