| Summary: Facility granted unilaterally to developing countries including the 'Everything but arms initiative' for Least Developed Countries. |
Definition
The principle of GSP was agreed at the United Nations Conference on Trade and Development (UNCTAD), and is a facility granted to developing countries ("beneficiary countries") by certain developed countries ("donor countries"). It is not negotiated with them: the preferential treatment is non-reciprocal.
The GSP schemes offered by the various donor countries and their rules of origin differ fundamentally. Goods complying with the conditions of the GSP of the USA, for example, will not necessarily comply with the EU GSP.
Special arrangements have been established in order to address the special needs of the least developed countries. Following the so-called "Everything But Arms" (EBA) initiative introduced in 2001, the EC GSP grants these countries duty-and quota-free access for almost all their exports.
For more detailed information on general aspects of the GSP and its background, see the GSP pages of DG Trade.
Exporters in developing countries may also be interested to see the Access 2 Markets of DG TRADE.
For more detailed information on the rules of origin aspect, see the Commission's guide for users on GSP rules of origin (The European Union's rules of origin for the GSP: A Guide for users).
Warning : not all countries listed as beneficiaries may actually qualify. Belarus for example is temporarily suspended from GSP, while some other countries have not yet complied with the administrative cooperation requirements, which are a pre-condition for goods to be granted the benefit of the preference. If in doubt, your competent customs authorities will advise.
Legal framework
The GSP regulation in force for the period up to 31/12/2027 is Regulation (EU) No 978/2012 applying a scheme of generalised tariff preferences.
GSP rules of origin are contained in
- Articles 37 and 41-58 of the Commission Delegated Regulation (EU) 2015/2446 of 28 July 2015 supplementing Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code;
- Articles 60 and 70-112 of the Commission Implementing Regulation (EU) 2015/2447 of 24 November 2015 laying down detailed rules for implementing certain provisions of Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code.
The list rules are contained in Regulation 2015/2446, Annex22-03 (Introductory notes and list of working or processing operations which confer originating status).
The Commission's guide for users on GSP rules of origin (The European Union's rules of origin for the GSP: A Guide for users) includes an unofficial consolidated version of the legal text concerning GSP rules of origin.
It is pointed out that GSP is a single regime. The special arrangements it includes (EBA, the Special Incentive arrangement for sustainable development and good governance (GSP Plus)) are part of GSP, so the same rules apply to them.
Specific provisions
NOTICE: These specific provisions only contain information on cases where the rules of the particular arrangement differ from the common provisions, or where these common provisions need to be complemented. Therefore, always check the common provisions too.
Cumulation
- Bilateral cumulation
- Regional cumulation
- Extended cumulation
- Cumulation with goods originating in Norway, Switzerland and Turkey
Neither diagonal cumulation nor full cumulation is permitted.
Regional cumulation of origin
The groups that may benefit from this are:
- Group I: Cambodia, Indonesia, Laos, Myanmar, Philippines;
- Group III: Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka.
Two other groups contain now only one country (Group II: Bolivia and Group IV: Paraguay) therefore the cumulation is impossible.
Regional cumulation between countries in the same regional group shall apply only under the condition that the working or processing carried out in the beneficiary country where the materials are further processed or incorporated goes beyond "minimal" operations and, in the case of textile products, also beyond the operations set out in Annex 22-05 (Working excluded from GSP regional cumulation (textile products)).
In order to guard against distortion of trade between countries having different levels of tariff preference, certain sensitive products are excluded from regional cumulation as set out in Annex 22-04 (Materials excluded from regional cumulation). In addition, cumulation is now possible between individual Group I and Group IV countries, upon request and under certain conditions.
Extended cumulation of origin
Extended cumulation between a beneficiary country and a country with which the European Union has a free-trade agreement in force, may be granted by the Commission upon request of a beneficiary country, provided that the countries involved in the cumulation have undertaken, inter alia, to provide the necessary administrative co-operation both with regard to the European Union and also between themselves and that the undertaking has been notified to the Commission by the beneficiary country concerned.
Materials falling within Chapters 1 to 24 of the Harmonized System are excluded from extended cumulation.
Extended cumulation of origin currently in force:
Cambodia-Vietnam: Vietnamese originating materials or parts used in the production in Cambodia of bicycles exported to the Union from Cambodia under GSP preferential tariffs (OJ L 234/190, 22.9.2023). The cumulation granted should apply until the date set out in Article 43(3) of Regulation (EU) No 978/2012, which is currently the end of December 2027.
Cumulation with goods originating in Norway, Switzerland and Türkiye
Because the GSP schemes offered by Norway, Switzerland and Türkiye are similar to EU GSP, a certain linkage between them is possible. Beneficiary countries have, since 2001, been permitted to cumulate origin with goods falling within Chapters 25 to 97 of the Harmonized System originating in Norway and Switzerland. This cumulation will continue and is extended to Türkiye. Materials (other than agricultural products or products covered by a derogation) which originate in Norway, Switzerland or Türkiye which undergo more than a minimal operation in a beneficiary country, are considered to originate in that beneficiary country, and may benefit from preferences when imported to the EU, to Norway, to Switzerland or to Türkiye.
In addition, the customs authorities in the EU, Norway, Switzerland or Türkiye may, for the purpose of sending the goods to one of the other parties, replace a Form A issued by the authorities of a beneficiary country.
The legal provisions are complemented by an agreement in the form of an exchange of letters between the parties, published in OJ L 24, 28.1.2019, p. 3–11 and OJ L 25, 29.1.2019, p. 3–11.
Derogations to the preferential rules of origin
Article 64(6) of the Regulation (EU) No 952/2013 of the European Parliament and of the Council as regards detailed rules concerning certain provisions of the Union Customs Code sets up the grounds for derogations to the rules of preferential origin established unilaterally by the European Union (Generalised System of Preferences, autonomous trade measures, overseas countries or territories). Upon its own initiative or at the request of a beneficiary country or territory, the Commission may, for certain goods, grant that country or territory a temporary derogation from the rules on preferential origin. The temporary derogation is justified by two alternative reasons:
- internal or external factors temporarily deprive the beneficiary country or territory of the ability to comply with the rules on preferential origin;
- the beneficiary country or territory requires time to prepare itself to comply with those rules.
The request for the derogation is made in writing and and must contain appropriate supporting documents. The derogation is granted for a limited time, may be renewable and implies that the beneficiary country or territory concerned complies with any requirements laid down as to information to be provided to the Commission concerning the use of the derogation and the management of the quantities for which the derogation is granted.
Derogations from the GSP rules of origin that are currently in force:
- Cabo Verde: prepared or preserved fillets of tuna and tuna loins (raw, cooked and frozen) , prepared or preserved mackerel fillets and prepared or preserved frigate tuna or frigate mackerel fillets produced from non-originating fish that shall be regarded as originating in Cabo Verde (OJ L, 2024/1288, 7.5.2024). The derogation shall apply to products which have been exported from Cabo Verde and declared for release for free circulation in the Union during the period from 1 January 2024 until 31 December 2025.
REX
A new system of certification of origin of goods, the Registered Exporters system (the REX system) is applicable as from 1 January 2017. An eLearning explaining all changes related to this new system can be downloaded without any charges.
Administrative cooperation
Access to the GSP scheme is conditional upon beneficiary countries putting into place and maintaining the necessary administrative structures and systems required for the implementation and management in that country of the GSP rules of origin and origin-related procedures, including where appropriate the arrangements necessary for the application of cumulation. The competent authorities of beneficiary countries are required to co-operate with the European Commission and the customs authorities of the EU Member States.