Fabian Demicoli

GSP rules of origin reform

The EU has proposed a new set of rules to better adapt the GSP rules of origin to the needs of the beneficiary countries.

 

The reform will be implemented from 2011 and the main highlight is the special distinction towards Least Developed Countries (LDCs). A specific effort has been made to simplify the procedures.

By relaxing several conditions and allowing operators to establish the certificates of origin themselves, the new regulation will give more predictability and be less burdensome for the beneficiary country authorities.

The current certificates issued by public administrations will be replaced by assessments made out by registered exporters -self certification- after a transition period (2017). Until then, both sides' customs authorities will work to reinforce cooperation.

Target sectors identified and specially targeted

Textiles: LDCs will now need just a single transformation, instead of the previous double transformation. This means that fabric can now be imported to produce clothing and this would, for example, allow for sourcing of very competitive fabrics abroad.

Agricultural products: an important effort of simplification has taken place. For instance, limitations on the use of sugar have been reduced permitting up to 40% in weight of nonoriginating sugar (instead of the previous 30% in value). However some new limitations have been introduced in very concrete cases (i.e. the use of dairy products).

Fisheries: the rules of origin have been simplified and relaxed eliminating the current crew requirement for vessels conditions.

Cumulation is now also possible:

Within the already existing regional groups (i.e. ASEAN, SAARC, etc) as well as the newly added MERCOSUR group.

Between SAARC and ASEAN for most products

Between GSP countries and countries linked to the EU via an FTA upon request for industrial products

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