Andy Martin - YRC Logistics EU

The special incentive arrangement for sustainable development and good governance, known as GSP+, offers additional tariff reductions (more generous GSP rates of duty) to support vulnerable developing countries in the ratification and implementation of international conventions.

CIP (08) 47 stated that all current beneficiaries of the GSP+ arrangements (Bolivia, Columbia, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Mongolia, Nicaragua, Panama, Peru, Sri Lanka and Venezuela) must re-apply by 31 October 2008 to continue to benefit from the more generous GSP rates of duty.

The European Commission had until 15 December 2008 to make a decision on their eligibility to continue to benefit from the arrangements.

The Commission published on 9 December 2008, the list of countries that will be eligible for GSP+ for the period 1 January 2009 to 31 December 2011. These are: Armenia, Azerbaijan, Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Honduras, Mongolia, Nicaragua, Paraguay, Peru, Sri Lanka and Venezuela.

Although El Salvador and Sri Lanka were included in the Commission’s decision, questions remain over the degree of effective implementation of certain United Nations (UN) and International Labour Organization (ILO) conventions in these countries.

The European Commission launched investigations in May (El Salvador) and October (Sri Lanka) in order to ascertain whether or not the two countries fulfil the conditions to continue to receive GSP benefits.

However, while the investigations are ongoing the countries continue to receive preferential access, but depending on the findings of the investigations they could be temporarily withdrawn from the GSP scheme sometime in 2010, which will mean that no preferential rates of duty will be available for their goods.

Changes to the current list of GSP+ Countries

Armenia, Azerbaijan and Paraguay will receive GSP + benefits for the first time.

However, due to the lateness of the Commission’s decision it will not be possible to update the customs computerised entry processing system (CHIEF) with the more generous GSP + rates for those countries in time for 1 January.

It is anticipated that the system will not be fully up to date until 1 February 2009.

Consequently, there is a risk that you could overpay duty on goods released to free circulation under the GSP between 1 January and 1 February.

In order to avoid this possibility, importers, agents and forwarders should use the tax override facility on CHIEF and manually calculate the GSP rate of duty payable on goods from the three countries concerned.

Panama did not reapply for GSP+ benefits. Consequently, it will become a standard GSP beneficiary with effect from 1 January 2009. Standard GSP rates of duty (see column 6 in the schedule in Volume 2 of the HMRC Tariff) will apply to Panamanian goods which are released to free circulation on or after 1 January.

http://customs.hmrc.gov.uk/channelsPortalWebApp/downloadFile?contentID=HMCE_PROD1_029103

(Source: customs.hmrc.gov.uk)

Labels: GSP, HMRC, Tariff Preference

# posted by Andy Martin @ Tuesday, January 06, 2009 0 Comments Links to this post