The US has renewed GSP for Cambodia.This allows Cambodian exporters access to duty-free privileges.

The renewal is retroactive, allowing exporters from beneficiary nations to claim refunds for transactions made after the GSP scheme expired last year. Eligible GSP merchandise entering the US between December 31, 2017, and the effective date of the extension, April 22, will be eligible for refunds of duty.

However, refunds will not be automatic. The law stipulates that importers need to file a refund request.

Cambodia is one of 120 nations included in the US’s GSP program, which was established in 1974 with the aim of promoting economic growth in the developing world.

Cambodia feels the program needs to be extended to products like garments and footwear following improvements in working conditions and the protection of labor rights made in recent years.

In July last year, the US granted duty-free benefits to Cambodian travel goods, including suitcases, backpacks, handbags and wallets.

Cambodia’s exports of travel goods increased from 53 million dollars in 2015 to 100 million dollars in 2016.

The country expects purchasing orders in the garment sector in 2018 to be higher than in 2017.

Foreign purchasers appear to be satisfied with what Cambodia has achieved when it comes to worker welfare. There is now a stable environment, a good relation between players in the industry.