GSP Registration (Generalised System of Preference)
Attention Exporters! Unlock unparalleled opportunities in global trade with GSP Registration through RegisterKaro.
4.9
Introduction to GSP
Generalised System of Preferences (GSP) are unilateral preference granted by some developed countries for exports from India. However, the exporters are to satisfy the rules of origin for exports. However, exporters must adhere to stringent rules of origin to qualify for these preferential tariffs. These regulations made under this comply with that the product must be originating from India and exporters must adhere to stringent rules of origin to get eligible for GSP benefits. Compliance with these rules is imperative for Indian exporters seeking to capitalise on the advantages offered by GSP schemes in target markets.
- What is GSP?
- Who issues GSP Certificate of Origin in India?
- Cumulation
- Regional cumulation of origin
- Procedure for online application
- Documents Required for GSP
- Benefits of GSP
- Difference between GSP and the Usual Trade Law
- How RegisterKaro Can Assist You in the GSP Registration Process?
- Why RegisterKaro?
- Frequently Asked Questions
Generalised System of Preferences
What is GSP?
1. GSP is a scheme facilitating preferential access for products originating from specific developing countries to the markets of the European Union.
2. The EU has concluded trade agreements with certain non-EU countries which allow exports from the EU to enter the markets of these countries at a reduced or nil rate of duty.
3. The primary objective of the GSP scheme is to provide essential access to EU markets for certain developing countries, thereby fostering their economic growth and development.
Who issues GSP Certificate of Origin in India?
The Government of India has launched various agencies to issue Certificate of Origin. To issue CoO under GSP following agencies have been nominated and are available to accept the application online on the common portal to issue the Certificate.
1. Export Inspection Council
2. Textiles Committee
3. Marine Products Export Development Authority
4. Directorate General of Foreign Trade
5. Tobacco Board
6. Noida Special Economic Zone
7. Kandla Special Economic Zone etc.
Cumulation
1. Bilateral cumulation
2. Regional cumulation
3. Extended cumulation
4. Cumulation with goods originating in Norway, Switzerland, and Turkey
Neither diagonal cumulation nor full cumulation is permitted
Regional cumulation of origin
The groups that may benefit from this are:
1. Regional Cumulation refers to grouping beneficiary countries for origin cumulation purposes under GSP.
2. Cumulation allows a product to attain originating status based on the work done in the last processing country, even if it doesn't meet normal origin rules.
3. Products manufactured in one beneficiary country within a regional group can undergo further processing in another beneficiary country within the same group, qualifying them as originating from the country of further manufacture.
Regional cumulation applies to three distinct groups of beneficiary countries under GSP:
.bde606ad.svg)
Group I: Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, Philippines, Thailand & Vietnam.
Group II: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Peru & Venezuela.
Group III: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan & Sri Lanka
Group IV: Argentina, Brazil, Paraguay, and Uruguay.
Procedure for online application
Step 1.
Application for the certificate of origin under GSP is processed through the DGFT electronic platform www.coo.dgft.gov.in.
Step 2.
Select "Online Application for Certificate of Origin" from the menu. Under the relevant options, choose:
1. Preferential Scheme
2. Free Trade Agreement – Generalized System of Preferences (GSP)
3. Select Type of COO - Normal CoO
4. Issuing Agencies - Noida Special Economic Zone
5. Regional Office – Noida Special Economic Zone
6. Exporter Details – as per details of exports
7. Product Details – including HS code of exports
8. Raw Material – details of inputs. Indicate the country of origin as the country where the basic raw materials are sourced, irrespective of whether they are domestically sourced or not.
9. Description of goods – details of the exported good
10. Mandatory document to be uploaded: Commercial invoice
Step 3.
Additional documents required when applying to the Noida SEZ office for the certificate of origin include:
1. Export product-wise format (sample annex provided for two export products)
2. Shipping Bill of export indicating the value
3. Bill of entry of materials if directly imported into the SEZ. Alternatively, provide proof such as invoice value/bill of export for procurement from DTA.
Step 4: Hearing:
The Noida SEZ office will issue the certificate of origin within 1 working day upon receipt of the completed form and documents.
Documents Required for GSP
1. Product Description
2. Digital Signature Certificate
3. Export-Import Code
4. Commercial Invoice
5. Manufacturer Exporter Declaration
6. Email-Address and Mobile Number
7. Purchase Order from Importer
Benefits of GSP
1. Indian exporters benefit indirectly – through the benefits that accrue to the importer by way of reduced tariff or duty-free entry of eligible Indian products.
2. Reduction or removal of import duty on an Indian product makes it more competitive in the developed foreign markets.
3. Tariff preference helps the new exporters penetrate a market and established exporters increase their market share and improve the donor country’s profit margins.
Difference between GSP and the Usual Trade Law
| Aspect | GSP | Usual Trade Law (MFN Clause) |
|---|---|---|
| Preferential Treatment | Provides preferential access to certain developing countries' exports through reduced or zero tariffs. | Requires equal treatment for all trade partners, as per the Most Favored Nation (MFN) clause. |
| Discrimination | Allows for discrimination by providing preferential treatment to specific countries. | Prohibits discrimination among trading partners, ensuring equal treatment for all WTO members. |
| Basis of Treatment | Based on the Generalized System of Preferences (GSP) scheme. | Governed by the Most Favored Nation (MFN) principle, wherein all WTO members receive equal treatment. |
| Purpose | Designed to benefit certain developing countries by facilitating access to markets in developed countries. | Promotes fairness and non-discrimination in international trade by ensuring that no country receives preferential treatment over others. |
| Exception for Developing Countries | Provides unique and differential treatment, including zero-tariff imports, for developing countries. | Allows for exceptions to the MFN principle, particularly for developing countries, to promote their economic development through trade. |
| Governing Body | Governed by specific agreements and regulations under the GSP scheme. | Governed by the World Trade Organization (WTO) rules and regulations, including the MFN principle. |
How RegisterKaro Can Assist You in the GSP Registration Process?
RegisterKaro serves as your ultimate solution for GSP Registration, offering a multitude of benefits:
Pool of Experts: Our experienced legal experts will provide personalized consultation to assess your organization's eligibility and guide you through the GSP Registration process. Rest assured; our team ensures your requirements are met with utmost efficiency.
Cost-effective: RegisterKaro offers premium-quality registration services for the GSP Registration at highly competitive rates, ensuring that quality service remains accessible without straining your budget.
Client-oriented approach: Our well-trained experts adopt a client-centric approach, prioritizing your needs and preferences throughout the registration process. We focus on understanding your business requirements to deliver tailored solutions.
Process Alteration: Recognizing the importance of customization, we provide flexibility in process structuring, allowing you to modify it according to your specific needs, requirements, and vision. Our goal is to achieve optimal results while ensuring your satisfaction.
Trusted partner of 10000+ Clients: With trust as our cornerstone, RegisterKaro has garnered the loyalty of over 10,000 satisfied clients. Our unwavering commitment to quality and assurance has earned us the enduring trust of our esteemed clientele. Enroll with RegisterKaro today and experience excellence firsthand.
Why RegisterKaro?
250+ Experts
4.5* Google Rating
24/7 Assistance
Quick and Easy Process
Complete Online Process
FAQs
What is GSP registration?
GSP registration allows eligible exporters to access preferential tariff treatment for their products in certain markets.
Is GSP registration mandatory for all exporters?
No, GSP registration is voluntary and depends on whether exporters want to avail themselves of preferential tariff benefits.
Are all products eligible for GSP benefits?
No, only products originating from beneficiary countries and meeting the rules of origin criteria qualify for GSP benefits.
Is there a specific application process for GSP registration?
Yes, exporters need to apply through the designated platform provided by the relevant authorities.
Can any exporting company apply for GSP registration?
Yes, as long as the company's products meet the eligibility criteria for GSP benefits.
Is there a fee associated with GSP registration?
No, GSP registration typically does not involve any fees.
Are there any ongoing compliance requirements after obtaining GSP registration?
Yes, exporters must ensure continued adherence to rules of origin and other regulatory requirements.
Does GSP registration guarantee preferential treatment in all beneficiary countries?
No, GSP benefits vary by country, and exporters must check the specific requirements of each market.
Is GSP registration a one-time process?
No, exporters may need to renew their GSP registration periodically, depending on the regulations of the importing country.
Can GSP registration be revoked?
Yes, if exporters fail to comply with ongoing regulatory requirements, their GSP registration may be revoked.