21 October 2013

Stop the Press: Did You Know? Issue 169

 

 
EU GSP 2014: We have had lots of questions since DYK168 summarised some key points on the new EU Generalised System of Preference Scheme starting 2014 so to clarify and correct a couple of things we are issuing this special Stop Press DYK.
 
GSP Regulation
http://trade.ec.europa.eu/doclib/docs/2012/october/tradoc_150025.pdf - Annex V lists the HS Headings covered by the different GSP Sections.
 
List of products excluded from 1st Jan 2014
http://trade.ec.europa.eu/doclib/docs/2012/december/tradoc_150166.pdf- all Sections in this document in the Annex do lose preference from the named beneficiary countries on the 1st January 2014 despite comments to the contrary.  This means India does lose preference on more than just textiles.
 
List of products added to GSP from 1st January 2014 Click Here 
 
If you go on to https://www.gov.uk/trade-tariff and change the date at the top of the page to January 2014 you can see the new GSP rates being applied to the different commodity codes.  For example we selected 8708101000 – 18 Oct 2013 – there are 3 GSP applicable change the date to 18 Jan 2014 – it shows 2 GSP schemes applicable, 1 GSP Group includes India but names India in the Exclusion column along with China so GSP will not apply to this commodity code from India or China in 2014. 
 
In additional to some countries losing GSP Status on some categories only from 1st January 2014 there will also be a graduation of other products out of GSP through 2014-2016.  Graduation of products out of GSP is subject to the economic impact of the imports to the EU economy.  In the past the GSP graduation mechanism has been barely used. Out of a total of over 2400 country-sectors, only 20 have been graduated—13 of which are Chinese sectors. The EU is monitoring the percentage of imports within the Sections flagged as graduated products from the beneficiary countries concerned.  If the percentage falls below 17.5% (lower for textiles and clothing 14.5%) of total imports in that sector then a notice of graduation will be given to customs/ traders.  This is because we are buying goods from other countries so the economic impact of no duty preference would only affect a small number of traders … in other words the graduation is market driven and we can’t know in advance what will happen, but we will be officially notified when the import quantity goes below the 17.5% (14.5% textiles/clothing) and generally the notification will be 12 months before removal of GSP Status on those goods from the named beneficiary country(ies)


 

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