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GSP HANDBOOK on the SCHEME of EUROPEAN UNION Generalized System of Preferences HANDBOOK on the SCHEME of the EUROPEAN UNION UNITED NA TIONS

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GSP HANDBOOK on the SCHEME of EUROPEAN UNION Generalized System of Preferences HANDBOOK on the SCHEME of the EUROPEAN UNION UNITED NA TIONS UNCT UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT AD GSP HANDBOOK ON THE SCHEME OF EUROPEAN UNION Generalized System of Preferences HANDBOOK ON THE SCHEME OF THE EUROPEAN UNION UNITED NA TIONS Printed at United Nations, Geneva – 1514369 (E) – August 2015 – 514 – UNCTAD/ITCD/TSB/MISC.25/Rev.4 UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT Generalized System of Preferences HANDBOOK ON THE SCHEME OF THE EUROPEAN UNION New York and Geneva 2015 HANDBOOK ON THE SCHEME OF THE EUROPEAN UNION NOTE While every care has been taken to ensure that the information contained in this handbook is correct, no liability or claim may be made against the United Nations. This document has no legal value. Only the regulations published in the Official Journal of the European Union, which have been the major source in preparing this handbook, have legal value. The designations employed and the presentation of the material in this publication do not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. Publications in the Generalized System of Preferences series The series of handbooks on the Generalized System of Preferences (GSP) promotes greater awareness among exporters and government officials in developing countries on trading opportunities available under the GSP and other preferential trade arrangements and a better understanding on applicable rules and regulations with a view to facilitating their effective utilization. The series comprises the following publications: – Handbook on the Scheme of Australia (UNCTAD/ITCD/TSB/Misc.56) – Handbook on the Scheme of Canada (UNCTAD/ITCD/TSB/Misc.66) – Handbook on the Scheme of the European Union (Present volume) – Handbook on the Rules of Origin of the European Union (UNCTAD/ITCD/TSB/Misc.25/Rev.3/Add.1) – Handbook on the Scheme of Japan (UNCTAD/ITCD/TSB/Misc.42/Rev.3) – Handbook on the Prefential Tariff Scheme of the Republic of Korea in favour of Least Developed Countries (UNCTAD/ITCD/TSB/Misc.75) – Handbook on the Scheme of New Zealand (UNCTAD/ITCD/TSB/Misc.48) – Handbook on the Scheme of Norway (UNCTAD/ITCD/TSB/Misc.29/Rev.1) – Handbook on the Scheme of Switzerland (UNCTAD/ITCD/TSB/Misc.28/Rev.3) – Handbook on the Scheme of Turkey (UNCTAD/ITCD/TSB/Misc.74) – Handbook on the Scheme of the United States of America (UNCTAD/ITCD/TSB/Misc.58/Rev.2) – Generalized System of Preferences – List of beneficiaries (UNCTAD/ITCD/TSB/Misc.62/Rev.6) – The African Growth and Opportunity Act: A preliminary assessment (UNCTAD/ITCD/TSB/2003/1) – Quantifying the benefits obtained by developing countriesfrom the Generalized System of Preferences (UNCTAD/ITCD/TSB/Misc.52) – Trade preferences for LDCs: An early assessment of benefits and possible improvements (UNCTAD/ITCD/ TSB/2003/8) The series is prepared by the Trade Negotiations and Commercial Diplomacy Branch, Division on International Trade in Goods and Services, and Commodities, UNCTAD. These publications are also available on the Internet: www.unctad.org/gsp For further information, please contact: Ms. Mina Mashayekhi Head, Trade Negotiations and Commercial Diplomacy Branch Division on International Trade in Goods and Services, and Commodities United Nations Conference on Trade and Development Palais des Nations, CH 1211 Geneva 10, Switzerland Tel.: +41 22 917 5866 Fax: +41 22 917 0044 UNCTAD/ITCD/TSB/Misc.25/Rev. 4 © Copyright United Nations 2015 All rights reserved ii iii CONTENTS CONTENTS Note ..................................................................................................................................................................ii Checklist: How to benefit from the European Union’s Generalized System of Preferences scheme ...................vi Introduction ...................................................................................................................................................... 2 I. Explanatory notes on the Generalized System of Preferences scheme of the European Union ........................................................................................................................5 A. Eligible and beneficiary countries ................................................................................................................. 6 B. Product coverage ........................................................................................................................................ 7 C. Depth of tariff cuts ....................................................................................................................................... 7 D. Country-product section graduation and country graduation mechanism .................................................. 11 E. Special arrangement for least developed countries: Everything but Arms initiative .................................... 13 F. Special incentive arrangement for sustainable development and good governance: GSP Plus .................. 14 G. Temporary withdrawal of the European Union’s Generalized System of Preferences scheme .................... 18 H. Safeguard clauses ..................................................................................................................................... 20 I. Surveillance measures in the agricultural and fisheries sectors ................................................................... 21 II. Rules of origin under the European Union’s Generalized System of Preferences scheme .....................................................................................................................................23 A. Origin-determining criteria ......................................................................................................................... 24 B. Control of origin and administrative cooperation ........................................................................................ 33 Endnotes ........................................................................................................................................................ 37 Tables 1. Category A products .................................................................................................................................... 8 2. Category B products .................................................................................................................................... 8 3. Category C products .................................................................................................................................... 8 4. Summary of tariff cuts provided by the 2008 Generalized System of Preferences scheme of the European Union continued by the 2012 scheme........................................................................................... 9 5. Example of a GSP tariff calculation (ad valorem duty only)........................................................................... 10 6. Example of a GSP tariff calculation (specific duty only) ................................................................................ 10 7. Example of a GSP tariff calculation (ad valorem and specific duty) .............................................................. 10 8. Example of a GSP tariff calculation (minimum duty) ..................................................................................... 10 9. Example of a GSP tariff calculation (minimum and maximum duties) ........................................................... 10 10. Example of a GSP tariff calculation (textiles and textile articles) ................................................................. 11 11. Example of a GSP tariff calculation (lowest rate applies) ............................................................................ 11 12. List of graduated sections from 1 January 2014 to 1 December 2015 ...................................................... 12 13. Everything but Arms initiative: Summary ................................................................................................... 14 14. Countries eligible to apply for GSP Plus .................................................................................................... 17 15. Excerpt from the List of products and working or processing operations which confer originating status: Dolls manufactured from imported plastics and fabrics .................................................................. 26 16. Excerpt from the List of products and working or processing operations which confer originating status: HS chapter 62 ............................................................................................................................... 28 17. Example of a calculation of originating inputs under regional cumulation ................................................... 31 ii iii HANDBOOK ON THE SCHEME OF THE EUROPEAN UNION Appendices 1. Regulation (EU) No. 978/2012 of the European Parliament and of the Council of 25 October 2012 applying a scheme of generalized tariff preferences and repealing Council Regulation (EC) No. 732/2008 ........................................................................................................................................... 39 2. Commission Delegated Regulation (EU) No. 155/2013 of 18 December 2012 establishing rules related to the procedure for granting the special incentive arrangement for sustainable development and good governance under Regulation (EU)
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