The Generalised System of Preferences (GSP) is a facility granted to developing countries (beneficiary countries) by certain developed countries (donor countries). There is no negotiation involved – the preferential treatment is non-reciprocal. The principle of GSP was established on a global level at the United Nations Conference on Trade and Development (UNCTAD).
On the level of donor countries, GSP is referred to as the Generalised Scheme of Preferences (i.e. the Generalised Scheme of Preferences of the EU).
Background
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 GSP of the EU.
Special arrangements have been established in order to address the specific needs of least developed countries. Following the so-called ‘Everything But Arms’ (EBA) initiative introduced in 2001, the EU’s GSP grants these countries duty- and quota-free access for almost all their exports.
[File: List of GSP beneficiary countries]
Note: 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 status of preferential origin. If in doubt, consult your competent customs authorities.
For more information on GSP and its background, see the European Commission's trade page on GSP. Exporters in developing countries may also be interested in the EU’s Access2Markets platform.
For more information on the rules of origin aspect of GSP, see the section User guide below.
Legal framework
Regulation (EU) No 978/2012 applies the scheme of generalised tariff preferences and is in force until 31 December 2027.
GSP rules of origin are contained in:
- Articles 37 and 41-58 of the Commission Delegated Act (DA) 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 Act (IA) 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 Annex 22-03 (Introductory notes and list of working or processing operations which confer originating status).
Note 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
Note: 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.
Types of cumulation of origin:
- Bilateral cumulation (not applicable for GSP)
- Regional cumulation
- Extended cumulation
- Cumulation with goods originating in Norway, Switzerland and Turkey
Neither diagonal cumulation nor full cumulation is permitted.
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.
Group II: Bolivia and Group IV: Paraguay currently contain only one country. Therefore, cumulation is impossible.
Regional cumulation between countries in the same group shall apply only if 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 of Regulation 2015/2446.
When regional cumulation is applied by GSP beneficiary countries, exporters must also declare the origin of the goods exported from the beneficiary country that supplies the materials, using statements on origin.
Statement on origin
A statement on origin is a declaration of origin that the registered exporter adds to an invoice, a delivery note, a packing list or any other commercial document that identifies the goods and the exporter.
For more details, consult Regulation 2015/2447:
- Annex 22-07 – statement on origin for the GSP scheme
- Articles 92 and 93 – rules related to the statement on origin for the GSP scheme
To guard against distortion of trade between countries with 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 between a beneficiary country and a country with which the EU has a free-trade agreement in force may be granted by the Commission upon request of a beneficiary country, under the following the conditions:
- the countries involved in the cumulation have undertaken, inter alia, to provide the necessary administrative co-operation
- with regard to the EU, and
- between themselves
- 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(s)currently in force:
- Cambodia-Vietnam - Materials originating in Vietnam or parts used in the production of bicycles in Cambodia can be exported to the EU from Cambodia under GSP-preferential tariffs (OJ L 234/190, 22.9.2023). The cumulation granted should apply until the end of December 2027 – the date set out in Article 43(3) of Regulation (EU) No 978/2012.
The GSP schemes offered by Norway, Switzerland and Türkiye are similar to the EU’s GSP. Thus, a certain linkage between them is possible.
The beneficiary countries are permitted to cumulate origin with goods falling within Chapters 25 to 97 of the Harmonized System originating in Norway, Switzerland and Türkiye.
Materials (other than agricultural products or products covered by a derogation) which originate in Norway, Switzerland or Türkiye, which undergo more than minimal operation in a beneficiary country, are considered to originate in that beneficiary country and may benefit from preferences when imported to the EU, Norway, Switzerland or Türkiye.
In addition, 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
Derogations to the preferential rules of origin established unilaterally by the EU are provided for in Article 64(6) of the Regulation (EU) No 952/2013 of the European Parliament and of the Council (Generalised Scheme 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 grant that country or territory a temporary derogation from the rules on preferential origin for certain goods. The temporary derogation is justified by one of the following 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 must contain appropriate supporting documents. The derogation is granted for a limited time and may be renewable. It also implies that the beneficiary country or territory concerned shall provide information to the Commission concerning the use of the derogation and the management of the quantities for which the derogation is granted.
Derogations 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 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 EU from 1 January 2024 until 31 December 2025.
Registered Exporters (REX) system
To benefit from the EU’s GSP, beneficiary countries must use the Registered Exporters (REX) system for certification of origin of goods. Exporters must be registered in REX and declare the origin of goods by producing a statement on origin.
A statement on origin is a declaration of origin that the registered exporter adds to an invoice, a delivery note, a packing list or any other commercial document that identifies the goods and the exporter.
For more details, consult Regulation 2015/2447:
- Annex 22-07 – statement on origin for the GSP scheme
- Articles 92 and 93 – rules related to the statement on origin for the GSP scheme
To apply the REX system effectively, a GSP beneficiary country must meet two criteria:
- submit to the Commission an undertaking that provides for administrative cooperation under the REX system (Article 70 of Regulation 2015/2447);
- give the Commission the contact details of the authorities that handle the registration of the exporters and the administrative cooperation (Article 72 of Regulation 2015/2447).
The following GSP beneficiary countries have not yet met these criteria: Central African Republic, Chad, Djibouti, Somalia, South-Sudan and Syria. These countries cannot export to the EU under the GSP.
The Commission has made available a free e-learning course explaining all changes related to the REX system.
Administrative cooperation
Access to GSP is conditional upon beneficiary countries putting in place and maintaining the necessary administrative structures and systems required for the implementation and management of GSP rules of origin and origin-related procedures in that country, including the arrangements necessary for the application of cumulation, where appropriate (Articles 70 and 72, Regulation (EU) 2015/2447).
The competent authorities of beneficiary countries are required to cooperate with the European Commission and the customs authorities of the EU countries.
User guide
The following is a guide on how to interpret and implement the rules of origin that determine whether goods produced in beneficiary countries are eligible for preferential tariff treatment under the EU's General Scheme of Preferences (GSP) for developing countries.
Note: this guide is currently being updated.
The EU’s Rules of Origin for the Generalised System of Preferences – A Guide for Users - includes:
- Appendix I – List of beneficiary countries
- Appendix II – Legal texts
- Appendix III
- List of qualifying operations and the introductory notes (Annex 22-03 DA)
- List of materials excluded from regional cumulation (Annex 22-04 DA)
- List of workings excluded from GSP regional cumulation (Annex 22-05 DA)
- Appendix IV - documents related to proof of origin
- Application to become a registered exporter (Annex 22-06 IA)
- Statement of origin (Annex 22-07 IA)
- Certificate of origin Form A (Annex 22-08 IA)
- Invoice declaration (Annex 22-09 IA)
- Movement certificate EUR 1 (Annex 22-10 IA)