The restoration of US’s Generalized System of Preferences programme became effective on Sunday, renewing access to duty-free privileges for Cambodian exporters.
The extension of GSP is part of the Consolidated Appropriations Act, 2018, an omnibus spending bill signed into law by President Donald Trump on March 23.
The renewal is retroactive, allowing exporters from beneficiary nations to claim refunds for transactions made after the GSP scheme expired last year.
Cambodia is one of 120 nations included in the US’s GSP programme, which was established in 1974 with the aim of promoting economic growth in the developing world.
As with past acts extending the GSP programme, the bill is retroactive, meaning that 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 with US Customs and Border Protection.
