Generalised System of Preferences (GSP) - Information for Importers
This guide is in a question and answer format and is based on questions most frequently asked by importers. A summary of the questions and answers is provided below.
- What is GSP?
- What conditions must be satisfied for obtaining preferential treatment?
- What countries are eligible to benefit under GSP?
- What goods are eligible for preference?
- Where can I find out the preferential rates of duty available under the GSP scheme?
- How do goods qualify as originating products?
- What is a Certificate of Origin Form A?
- Has a Form A a specific validity period?
- What if a Form A is not issued at time of exportation?
- What if a Form A is lost, destroyed or stolen?
- When are replacement Certificates of Origin Forms A issued?
- What is the direct transport rule?
- What evidence is required to show that the direct transport rule has been complied with?
- What evidence is required to comply with the direct transport rule for Chinese goods transiting through Hong Kong?
- Are any countries and/or products excluded from GSP?
- Are there any opportunities for EU exporters under GSP?
- Is there any provision for regional cumulation in the GSP arrangements?
- 18. Where can I get further information?
1. What is GSP?
The Generalised System of Preferences (known as GSP for short) is a scheme whereby a wide range of industrial and agricultural products originating in certain developing countries are given preferential access to the markets of the European Union.
Preferential treatment is given in the form of reduced or zero rates of customs duties.
The GSP scheme is specifically designed to benefit certain developing countries and integrate them into the world economy.
2. What conditions must be met for obtaining preferential treatment?
Certain products on importation into the EU are eligible for reduced or zero rates of customs duties provided that they:
- are eligible for preference under the GSP scheme;
- qualify as originating products under the rules of origin set down in the Community Customs
Code Implementing Provisions – see http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/index_en.htm
. - are accompanied by a valid Certificate of Origin Form A and relevant transport documents
- are transported directly from the GSP country to the EU (commonly referred to as the Direct Transport Rule).
3. What countries are eligible to benefit under GSP?
Three distinct categories of countries can benefit under the GSP scheme provided the goods are produced in accordance with the relevant rule of origin
- Developing countries/territories enjoy preferential access to EU markets
- Least developed developing countries (LDDC) benefit from zero duty on import into the EU for all products of Chapters 01- 97 with the exception of Chapter 93.
- Special incentive arrangement for sustainable development and good governance - GSP+
A list of the countries included in the three categories mentioned above is given in 
Annex A, B and C (MS Word, 287KB) - Updated 17/08/2010.
4. What goods are eligible for preference?
Details of eligible products can be found in the EU legislation governing the GSP scheme. Regulation No. 732/2008 (OJ L 211 of 06.08.2008) applies GSP for the period from 1 January 2009 to 31 December 2011.
5. Where can I find out the preferential rates of duty available under the GSP scheme?
Rates of duty are given in the Customs and Excise Tariff of Ireland, which is available on the Revenue website. Up to date rates of duty are also available in the Taric database on the EU Commission website
6. How do goods qualify as originating products?
The concept of "originating product" forms the basis upon which preferential access is granted to products entering the EU under GSP. Products are considered as originating in two ways:
- Products wholly obtained in a GSP country
- Products considered to be originating in a GSP country when the raw
materials used are sufficiently worked or processed. The GSP scheme provides rules of origin to
ensure that this condition is satisfied. Each product has a specific origin rule which can be
found the Customs Code Implementing Provisions. The rule of origin is based
on the first four digits of the Tariff Classification Code for the product. For details see http://ec.europa.eu/taxation_customs/customs/customs_duties/rules_origin/index_en.htm .
7. What is a Certificate of Origin Form A?
A Certificate of Origin Form A is the documentary evidence required to claim preferential treatment (reduced or zero rate of duty) on importation into the EU.
The Form A is issued by the competent governmental authority in the exporting country and is provided by the exporter to the importer in the EU. It will normally accompany the goods.
The Form A can only be issued when the goods to which it relates are originating products within the meaning of the GSP scheme.
8. Has a Form A a specific validity period?
Yes, the Form A must be submitted, to the customs authority of the importing Member State, within 10 months of the date of issue.
However, the customs authority in the Member State may accept a Form A which has passed its expiry date where failure to observe the time limit is due to force majeure or exceptional circumstances.
9. What if a Form A is not issued at the time of exportation?
In exceptional circumstances, a Certificate of Origin Form A may be issued after the actual exportation of the goods to which it relates. In this case, the competent authority in the exporting country must endorse Box 4 of the Form A with the words "Issued Retrospectively".
10. What if a Form A is lost, destroyed or stolen?
In the event of theft, loss or destruction of a Form A, the exporter may apply to the competent authority for a duplicate to be issued. In this case, Box 4 of the duplicate Form A must bear the endorsement "Duplicate", together with the date of issue and the serial number of the original certificate. The duplicate shall take effect from the date of the original.
11. When are Replacement Certificates of Origin Forms A issued?
On occasions where parts of a consignment of goods imported from a GSP country are destined for different Member States, a replacement Form A may be issued by the customs authority in the first Member State of entry into the EU.
12. What is the Direct Transport Rule?
As was indicated earlier (2. What conditions must be met for obtaining preferential treatment? above), one of the conditions which must be met for obtaining preferential treatment is that goods are transported directly from the GSP country to the EU. The direct transport rule is in place to ensure that only goods from the country of export benefit from GSP. The circumstances whereby the direct transport rule is satisfied are as follows:
- goods transported without passing through the territory of any other country, except in the case of the territory of another country of the same regional group(see question 17 for regional groups of beneficiary countries);
- goods constituting one single consignment transported through the territory of countries other than the exporting GSP country or the Community, with, should the occasion arise, transhipment or temporary warehousing in those countries. In these instances, the goods must have remained under the surveillance of the customs authority in the country of transit or of warehousing and not have undergone any operations other than unloading, reloading or any operation designed to preserve them in good condition;
- goods transported through the territory of Norway or Switzerland and subsequently re-exported in full or in part to the Community or to the GSP country, provided the goods have remained under the surveillance of the customs authority of the country of transit or of warehousing and have not undergone operations other than unloading, reloading or any operation designed to preserve them in good condition;
- products which are transported by pipeline across a territory other than that of the exporting GSP country;
- products originating in China and transhipped through Hong Kong are subject to special arrangements (see Question 13).
13. What documentary evidence is required to show that the direct transport rule has been complied with?
Evidence that the direct transport rule has been adhered to can be provided by presenting to the competent customs authority:
- a through bill of lading issued in the exporting GSP country covering the passage through the country of transit;
- certification issued by the customs authority of the country of transit, giving an exact description of the goods, stating the dates of unloading and reloading of the goods or of their embarkation or disembarkation, identifying the ships or other means of transport used, and
- failing the above, any substantiating documents.
14. What evidence is required to comply with the direct transport rule for Chinese goods transiting through Hong Kong ?
To comply with the direct transport rule (where Chinese goods are transhipped via Hong Kong), any of the following must be produced on importation:
- a Bill of Lading issued in China, which covers the transport through Hong Kong accompanied by a certificate of origin, Form A or
- a Form A endorsed by the China Inspection Company Limited (CICL) stamp in box 4, or
- a certificate of non-manipulation issued by the CICL when the Form A is sent directly to the EU by mail.
15. Are any countries excluded from GSP?
Since 1995 certain products and countries have gradually been excluded from the scheme as they are considered to no longer need preferential access to EU markets.The countries include Singapore, Hong Kong, South Korea, Belarus and Myanmar.
16. Are there any opportunities for EU exporters under GSP?
The scheme only provides preferential access on importation into the EU. It does not provide for preferential access into third country markets. However, it is possible for exporters to send raw materials and semi-finished products which originate in the EU to GSP countries under cumulation provisions.
The cumulation provisions of the GSP enable originating materials exported from the EU to be regarded as materials originating in GSP countries when incorporated into a finished product there. The EU materials must be produced in accordance with the rules of origin laid down in the GSP scheme and must be accompanied by an EUR.1 certificate when exported.
The cumulation provisions encourage GSP countries to source raw materials in the EU as it makes it easier to satisfy origin criteria.
17. Is there any provision for regional cumulation in the GSP arrangements?
In certain circumstances, various beneficiary countries have been grouped together for the purposes of cumulation of origin under GSP. Cumulation is a term used to indicate the basis upon which a product may enjoy originating status, even though the normal origin rules would not confer origin on the basis of the work done in the country of last processing. Products manufactured in a beneficiary country which is a member of a regional group, may be further processed in another beneficiary country of the same group and will be treated as if they originate in the country of further manufacture.
Regional cumulation applies to three separate groups of beneficiary countries which benefit from GSP:
- Group I consisting of Brunei-Darussalam, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam & Cambodia.
- Group II consisting of Bolovia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Peru & Venezula
- Group III consisting of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan & Sri Lanka
18. Where can I get further information?
Office of the Revenue Commissioners,
Classification, Origin and Valuation Unit,
Customs Division,
Government Offices,
St. Conlon's Road,
Nenagh,
Co. Tipperary.
Direct Lines: 067 63260/63213
Fax: 067 63388
E-mail: origin&valuationsection@revenue.ie
European Commission website: Generalised System of Preferences
January 2009