Cambodia has signed the Developing Countries Trading Scheme (DCTS) with the UK, which would replace the Generalised System of Preferences (GSP) and help boost exports of garments and footwear.
The new preferential trade tax system has similar features and benefits to the GSP, but in addition, many preferential tariffs have been improved regarding the origin of goods exported from Cambodia to the UK.
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The main change between GSP and DCTS is about the law of origin. The new preferential system makes it easier for Cambodia, as well as other developing countries, to produce goods for the UK market.
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In a statement, the Cambodian Ministry of Commerce instructed all producers or exporters to follow the rules of origin of the UK to receive the DCTS preferential treatment.
“The preferential treatment will be further facilitated by the liberalization of the rules of origin and the simplification of the requirements, which allow for the use of local value-added content to 25 percent,” the statement said.
The trade volume between the UK and Cambodia totaled around US 7 million in 2022, up 23.
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9 percent as against that achieved in 2021.
