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.
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 primary objective of the GSP is to contribute to the reduction of poverty and the promotion of sustainable development and good governance. Preferential tariff rates when exporting to the EU market enable Developing Countries to participate more fully in international trade and generate additional export revenue to support them in developing industry and jobs and reducing poverty.
The UK is party to the EC GSP, which is operated by all EC Member States. The EU adopted a regulation on 22 July 2008 applying a new GSP scheme for the period from 1 January 2009 to 31 December 2011. The European Commission’s website provides detailed information on the GSP scheme and can be found at the link on the right.
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 special incentive known as ‘GSP+’. The countries eligible are:Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Sri Lanka, Moldova, Mongolia, Nicaragua, Panama, Peru and Venezuela. These arrangements came into effect from 1 July 2005, replacing the ‘Drugs Regime’ arrangements that have been repealed.
Everything But Arms (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.
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.
See related links on the right of this page for a link to 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 as follows and can be found in the Official Journal of The European Communities (OJ) (see related links)
- The full text of the new GSP scheme (Council Regulation (EC) 980/2005) – OJ reference L169 of 27 June 2005 (see related documents link on right to view)
- The text of the Anti-Dumping scheme: (Council Regulation (EC) 384/96 as amended) – OJ reference L56 of 6 March 1996
- The GSP rules of origin are contained in Articles 66-97 and Annexes 14-18 and 21 of Commission Regulation No 2454/93 (implementing provisions of the Community Customs Code), as amended by Commission Regulation (EC) No. 12/97 of 18 December 1996 – OJ L9 of 13. 1. 1997, (EC) No. 1602/2000 of 24 July 2004 – OJ L188 of 27. 7. 2000 and (EC) No. 881/2003 – OJ L 134 of 29. 5. 2003.
Useful contact points
GSP duty rates (and other general enquiries about treatment of products):
In the first instance: check the current HM Revenue and Customs United Kingdom Tariff
Otherwise: check with the HM Revenue and Customs Advice Service – Tel: 0845 010 9000
(Note: VAT offices do not deal with customs matters).
For further information on GSP, please contact:
Pamela Brown
Trade Policy Unit
Tel: 020 7215 5922
Fax: 020 7215 2235
E-mail: pamela.brown@bis.gsi.gov.uk
GSP Rules of Origin:
Colin Wray
Trade Policy Unit
Tel: 0207 215 5059
Fax: 0207 215 2234
Email: colin.wray@bis.gsi.gov.uk
