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The EU Generalised System of Preferences

The Generalised System of Preferences (GSP) is a programme to allow developing or newly industrialised countries successfully to export manufactured goods to developed countries by giving these countries preferential access to their markets. This 'preferential access' usually takes the form of a reduction in tariffs for specified goods.

The current GSP, in place since 1995, applies to imports from developing countries that pay duty on entering the EU market, and that are not already duty-free under Most Favoured Nation (MFN) agreements.  Of the approximately 11,000 customs lines in the EU about 2,000 are already duty-free under MFN.  GSP applies to about 6,900 of the remaining 9,000

The general scheme currently covers roughly 6,900 products, of which 3,200 are classified as non-sensitive and 3,700 are classified as sensitive products.  Non-sensitive products enjoy duty free access, while sensitive products benefit from a tariff reduction of 3.5 percentage points on the MFN tariff.  The GSP will remain unchanged until the end of 2008, providing stability and predictability for importers and exporters.  At the end of this period, the general scheme product coverage will increase from about 6,900 to about 7,200 products.  It will incorporate 300 additional products mostly in the agriculture and fishery sectors, of interest for developing countries

Some products from specified countries are not eligible for GSP relief at all.  The EU's Generalised System of Preferences is just one of many that operate internationally.  As a member of the EU, the UK  is part of this scheme, and its rules apply to companies wishing to import from GSP countries at advantageous rates.

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) UK (see Useful Addresses).

You still need the Commodity Code

In most cases it is easier for the importer in the UK to find what out relief may be available under GSP since it is his responsibility to pay any duties.  However, as in all tariff rate enquiries, it is impossible to obtain an accurate reading from The Integrated Tariff of the United Kingdom without having the eight (or nine) figure commodity code for the product concerned.  The Tariff can be consulted at some libraries, and it may be possible to consult The Tariff at commercial sections of British embassies in Arab countries, or by contacting HM Revenue & Customs Tariff Classification Service (see Useful Addresses) or the Arab-British Chamber of Commerce.

There are rules of origin for goods qualifying for GSP.  Your importer in the UK must show that the goods meet the rules of origin by producing a document known as 'Form A' which has been completed and stamped by the recognised authority in the exporting country (the country of manufacture).  The origin rules state in general terms that the goods must have been wholly produced in the country claiming GSP benefits, although in certain cases there may be allowance for using imported materials.

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