General Systems of Preferences (GSP)

General Systems of Prefernces(GSP)

The Generalized System of Preferences, or GSP, is a formal, non-reciprocal system of granting tariff exemption by developed countries to developing  countries for the purpose of lowering tariffs for developing countries (without also doing so for developed countries).

The purposes of granting duty free treatment for developing countries are

(a)  to increase their export earnings;

(b)  to promote their industrialization; and

(c)  to accelerate their rates of economic growth

Since the start of the GSP system, preference-giving countries decided to implement their national schemes independently. As pointed out, preferences are granted unilaterally and non-contractually. For that reason donor countries retained the general principle that they were free to decide on the rules of origin which they thought were appropriate after hearing the views of beneficiary countries.

The lists of GSP schemes are

Australia,

Belarus,

Bulgaria,

Canada,

Estonia,

European Union,

Japan,

New Zealand,

Norway,

Russian Federation,

Switzerland,

Turkey and

United States of America.

In general now 13 different GSP schemes are avilable for Ethiopian export product to access global market under prefential tariff rate.

Elements of GSP

Each GSP schemes has its own elements and has miner difference from one scheme to another scheme. These are beneficiary countries, product Coverage, rules of origin, depth of tariff cuts, cumulation, graduation and safeguard.

GSP Certificate of Origin

The GSP Certificate of Origin is sold and approved by the Ethiopian Revenues and Customs Authority

Head Office,Tariff and Valuation Directorate,

Rules of Origin Team

Block A 2nd Floor Room No. 201
Addis Ababa, Ethiopia
Tel: (251) 1 11 6 62 98 28
Fax: (251) 1 11 6 62 98 59
Website: www.erca.gov.org

To approve the Certificate, the following documents must be submitted:

• GSP Certificate of Origin duly filled
• Export Invoice
• Appropriate certified costing for value added requirements
• Any other document as may be required by the Team