GSP Origin Rules

Posted on: 26/10/2010


25 of the 27 Member States of the EU (including the UK) have voted in favour of changes to the GSP Rules of Preference Origin. We understand that the possibility for countries in the SAARC and ASEAN regional groups to apply to cumulate with each other will be considered as will the potential for GSP beneficiaries to apply to cumulate to countries with Free Trade Agreements with the EU. The following changes are expected to come into force on the 1st January 2011:
·              Simplifications to the regional cumulation rules, though certain materials may be excluded from these arrangements
·              Revision of products specific rules of preference origin for certain goods
·              Replacement of the direct transport rule with the non-manipulation requirement
·              Increase in the general tolerance from 10% to 15% (15% of the weight in the case of a range of agricultural products)
·              Deletion of the crew requirement for proving preference origin for fish, for example
It is hoped that Norway, Switzerland and Turkey will adopt the new EU GSP rules of Preference Origin. Once this happens it is expected that GSP Beneficiary countries will be able to treat materials, components or parts originating in Norway, Switzerland and Turkey as is they were their own.  The next step will be the replacement of GSP Forms As with statements of origin issued by registered exporters called the Registered Exporter (REX) system. But this is not expected until 1 January 2017 at the earliest. We are hoping to see a new Customs Notice from HMRC on these changes during 2011.

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