Generalised
System of Preferences (GSP)
The Generalised System of Preferences (GSP) aims to encourage
developing countries exports by allowing their products preferential
access to the markets of developed countries. Although donor countries
are under no obligation in international law to give preferences,
almost all developed countries operate GSP schemes; however, the
schemes they offer vary significantly. The UK is party to the EC
GSP, which is operated by all EC Member States. The current scheme
will expire on 31 December 2005.
New arrangements
A new GSP scheme will come into effect from 1 January
2006. The regulation, including eligibility tables can be found
here. The major changes to the scheme over the present arrangements
are:
· The replacement of existing special incentive schemes by
a new special incentive scheme for sustainable development and good
governance (see below).
· Amended arrangements for withdrawing preferences that will
see preferences removed from some countries and restored for others.
New special incentive arrangements for sustainable development
and good governance (‘GSP+’)
Countries
that ratify a number of key international treaties on labour standards,
human rights, good governance and environmental protection will
be eligible for duty-free access for most covered products, under
a scheme known as ‘GSP+’. From 1 January 2006 the countries
eligible are: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador,
Georgia, Guatemala, Honduras, Sri Lanka, Moldova, Mongolia, Nicaragua,
Panama, Peru and Venezuala.
Special
arrangements for certain tropical fisheries products
The common customs tariff for certain shrimps and prawn products
(customs code: 0306 13 50, 0306 13 80, 1605 20 10 and 1605 20 91)
has been temporarily suspended from 1 August 2005 until 31 December
2005. The Regulation L228 Volume 48 can be found here
 (33 kb).
This will primarily affect exports from Thailand of these products,
which will thereby benefit from a tariff rate equivalent to GSP
preferential rates (4.2% for 0306, 7.0% for 1605). From 1 January
2006, Thai fisheries exports will be eligible for the GSP rate under
the new GSP scheme.
For further information on GSP, please
contact:
Pam
Brown
Tel:
020 7215 5922
Fax: 020 7215 2235
E-mail: pamela.brown@dti.gsi.gov.uk
Peter Stephens
Tel: 020 7215 5550
Fax: 020 7215 2235
E-mail: peter.stephens@dti.gsi.gov.uk
Any general
enquiries or comments regarding the GSP scheme please forward them
to Pamela Brown or if you prefer,
please complete a short
feedback form.
For additional
help on GSP there is also a GSP Users Guide available
at the end of this page.
EBA
The Everything
But Arms (EBA) initiative allows all goods, except for arms from
the 49 Least Developed Countries (LDCs) to enter into the EU duty
and tariff free. Three categories of goods – rice, bananas and sugar
- were given longer implementation periods, but this means that
the LDCs now have duty free access to the EU market for goods they
produce. The EBA initiative is an integral part of the GSP regulation.
Modifications
to the current GSP scheme
The current
scheme was agreed on 10 December 2001, the Regulation published
in the Official Journal on 31 December 2001, ref OJ L346, Volume
44, and came into force on 1 January 2002.
The special
arrangements to combat drug production and trafficking (the ‘Drugs
Regime’, Article 10 of the current Regulation) has been repealed
from 1 July 2005, and replaced by the special arrangements for sustainable
development and good governance described above ref
article 30, OJ L169, Volume 48.
All the countries covered by the Drugs Regime are eligible
for the new arrangements except for Pakistan.
Recent changes
to graduation took effect from 1 November 2003, further graduation
occurred on 1 May 2004. The new Regulation ref OJ
L116, Volume 46 sets the graduation for 2003 and 2004 in
more detail. Specific provisions for any beneficiary country facing
financial and economic crisis to be exempt from graduation is set
out in the Regulation ref OJ L116,
Volume 46.
A rollover
of the current EU scheme will expire on 31 December 2005. The amended
Regulation setting out the extension of the GSP for one year was
published in the Official Journal on 19 December 2003, ref OJ L332
A new Regulation
setting out revisions to the current GSP scheme for the rollover
period of 1 January 2005 - 31 December 2005 was published in the
Official Journal on 31 December 2003, ref OJ L346. This includes details on the removal of
graduation for beneficiaries which represent less than 1% of the
GSP trade flows.
The Commission
has granted additional tariff preferences to Sri Lanka and has initiated an inquiry into
labour rights violations in Belarus The new Regulation setting out the provisions
for granting of special incentive arrangements for Sri Lanka was
published on 31 December 2003, ref OJ L346.
For more
detailed information refer to the European Commissions GSP website. More information
on the rates of duty payable on imports into the EU can be found
on the HM Revenue
& Customs.
GSP Users guide, Generalised System
of Preferences (GSP)
The European
Community's Generalised System of Preferences (GSP) scheme 1 January
2002 – 31 December 2004 exists to promote the better integration
of developing countries into the world trading system.
Importers' responsibilities
Importing
under preference is not without risk to the importer. A feature
of the GSP is the post importation check by Community Customs administrations
to verify that the goods satisfy the rules of origin. If such checks
show that the goods were not entitled to preference, the importer
becomes liable for duty at the full rate. It is therefore in the
importer’s own interest to take all steps possible to ensure that
the goods satisfy the rules of origin and are entitled to the relief
claimed.
Please follow
the link here to view the European Commission’s GSP website, which includes the
User’s Guide to the GSP Scheme, and the GSP Regulation itself.
Further information
The official
texts of the legal instruments which govern the GSP are to be found
in the Official Journal of The European Communities (OJ)
as follows:-
- The full text of the new GSP scheme (Council
Regulation (EC) 980/2005) – OJ reference L169 of 27 June 2005
- The full text of the
existing GSP scheme (Council Regulation (EC) 2501/2001) – OJ reference
L346 of 31 December 2001
- The text of the Anti-Dumping
scheme: (Council Regulation (EC) 384/96 as amended) – OJ reference
L56 of 6 March 1996
- The GSP origin rules
(Commission Regulation (EC) 2454/93 as amended by Commission Regulation
(EC) 1602/2000) – OJ reference L188 of 26 July 2000 (Articles
66 to 97 and Annexes 14,15,16, 17 & 18 therein)
The Official Journal can be obtained from The Stationery
Office (HMSO) (see paragraph 9 below for contact details).
Useful contact points
GSP duty
rates (and other general enquiries about treatment of products)
- In the first instance:
check the current HM Customs and Excise United Kingdom Tariff
- Otherwise: check with
the HM Customs and Excise Advice Service – Tel: 0845 010 9000
(Note: VAT
offices do not deal with customs matters).
GSP
Online Query Form
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