GSP (Generalized System of Preferences)

The Generalized System of Preferences (GSP) is a unilateral tariff preference scheme granted by developed countries to developing or least developed countries, allowing beneficiary countries to export some or all products to the granting country's market at rates lower than the MFN rate or even duty-free. Its core principles are 'non-reciprocal, non-discriminatory, and unilateral,' aimed at promoting exports and industrialization in developing countries. Usage scenarios: When exporting to GSP granting countries (e.g., the EU, UK, Japan, Canada), if products meet rules of origin (e.g., wholly obtained, regional value content, direct transport), exporters can apply for a GSP Certificate of Origin (e.g., Form A) to enjoy tariff reductions. Notes: The list of beneficiary countries, product coverage, origin criteria, direct transport rules, and certificate validity are subject to dynamic adjustments; granting countries may trigger a 'graduation mechanism' to remove preferences for certain countries or product categories; companies must ensure document consistency to avoid supplementary duties or penalties due to non-compliance with origin rules. Compared with Most-Favored-Nation (MFN) treatment, GSP rates are lower but not universally applicable; unlike Free Trade Agreement (FTA) preferences, GSP is granted unilaterally without reciprocal negotiations. Trade practitioners should regularly check the latest GSP schemes of granting countries and assess their utilization value.