EU GSP Scheme from January 2014

Posted on: 06/11/2013

The EU Generalised System of Preference (GSP) scheme effective from 1st January 2014 will see major changes to this import preference financially affecting many traders.  It will be a major rewrite of a scheme used in EU countries since the 1970’s permitting developing markets duty reduced access on imports.  GSP2014 will see the number of countries covered by the scheme come down from 170 to around 90.

Countries no longer eligible for GSP customs duty at import into the EU under the new agreement for any goods are: Argentina; Bahrain; Belarus; Brazil; Brunei Darussalam; Cuba; Gabon; Kazakhstan; Kuwait; Libya; Macao (SRA); Malaysia; Oman; Palau; Qatar; Russia; Saudi Arabia; UAE; Uruguay and Venezuela.

Countries losing GSP customs duty for some commodity codes at import into the EU from 1st January 2014 are:

  • Costa Rica – all qualifying products covered by EU FTA from 1st October 2013
  • Ecuador – losing GSP on goods within Chapters 6 and 16. Full list in Annex V of EU Regulations reference L303/30 dated 31/10/2012. 
  • China – losing GSP on goods within Chapters 1-5, 7-13, 17-23, 28-29, 31-46, 50-76, 78-79 and 81-96.  Full list in Annex V of EU Regulations reference L303/30 dated 31/10/2012.  Also under surveillance so further GSP duty rates subject to removal within 2014-2016 (graduating out of the sheme)
  • India – losing GSP on goods within Chapters 25, 27, 28, 29, 31-38, 41, 50-60 and 87-89. Full list in Annex V of EU Regulations reference L303/30 dated 31/10/2012. Also under surveillance so further GSP duty rates subject to removal within 2014-2016 (graduating out of the sheme)
  • Indonesia – losing GSP on goods within Chapters 1-5, 15 and 31-38. Full list in Annex V of EU Regulations reference L303/30 dated 31/10/2012. Also under surveillance so further GSP duty rates subject to removal within 2014-2016 (graduating out of the sheme)
  • Nigeria – losing preference on goods within Chapter 41. Full list in Annex V of EU Regulations reference L303/30 dated 31/10/2012
  • Thailand – losing preference on goods within Chapters 16, 17 and 71. Full list in Annex V of EU Regulations reference L303/30 dated 31/10/2012. Also under surveillance so further GSP duty rates subject to removal within 2014-2016 (graduating out of the sheme)
  • Ukraine – losing preference on goods within Chapter 86. Full list in Annex V of EU Regulations reference L303/30 dated 31/10/2012

New scheme starts 1st January 2014 for a rolling 10 years.  Subject to review and changes as required.

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).  Generally the notification will be 12 months before removal of GSP Status on those goods from the named beneficiary country(ies)

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

 

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