Generalized System of Preferences

Generalized System of Preferences (GSP)
 

Generalized System of Preferences Certificate of Origin or FORM A / GSP FORM A is a preferential Certificate of Origin signed on the basis of a kind of tariff preference systems —Generalized System of Preferences that provided by developed countries to developing countries. The certificate applies A form with yellow color and is usually called FORM A or GSP FORM A for short in the foreign trading.
 

1.       Objective of GSP.

The objectives of the GSP program are:-

a.       to increase the export earnings of preference-receiving countries;

b.       to promote their industrialization; and

c.        to accelerate their rate of economic growth

2.       What is GSP?

The GSP is a system whereby developed countries grant preferential treatment to eligible products imported from developing countries, so that export of developing countries would be competitive in the developed countries markets. The preference-giving country is also known as the donor country, and the preference-receiving country as the beneficiary country;

The preferential treatment is in the form of reduced import duty, and granted without reciprocal obligation on the part of the developing countries;

GSP presently extended by 36 preference-giving countries. are :

3.       Purpose of GSP

The purpose of the GSP is to enable exports of developing countries to be competitive in the developed countries' markets; and The lower tariffs or duty free entry make it attractive for importers in the donor countries to import from exporters in the beneficiary countries.

4.       Benefits of GSP

GSP means Generalized Systems of Preferences. It is a Certificate of origin issued by the Govt. or allied institution to exporter meant to avail benefits in imports duties at importing country. Without this importer has to pay the full duty on the given items.

5.       Documents required for issuing GSP Certificate

a.       GSP Form ‘A’

b.       Invoice.

c.        Packing list for the concerned invoice.

d.       Working sheet stating separately direct cost/in direct cost/Overheads etc.

e.        EUR Certificate (in case imports are from European Community & exports to European Community

f.        Copy of Bill of Entry for the imported raw materials used in the consignment.

g.        Details of quantum/origin of the inputs/ consumables used in the export Product.

h.       Bill of Lading

i.         Photocopy of Importer Exporter Code No