China will no longer issue GSP certificates of origin for goods exported to 32 EU member states

Preface

On October 25, the General Administration of Customs issued Announcement No. 84 of 2021. Starting from December 1, 2021, the Customs will no longer issue GSP certificate of Origin for goods exported to EU member states, the United Kingdom, Canada, Turkey, Ukraine, and Liechtenstein. Let us learn the development history of the GSP and GSP Certificate of Origin in China, as well as the relevant actions that companies can take after the GSP certificate of origin is no longer issued.

1. What is GSP

The Generalized System of Preferences referred to as the GSP, is a universal, non-discriminatory, non-reciprocal tariff preference system for developed countries (perference-giving countries) export manufactured and semi-manufactured products to developing countries and regions (beneficiary countries). Since the implementation of the Generalized System of Preferences in 1978, 40 countries have given China's Generalized System of Preferences tariff preferences, most of which are China's important trading partners, such as EU member states and the United Kingdom, Russia, Canada, and Japan. China has also used the Generalized System of Preferences to expand exports to developed countries actively, and has played an important role in the growth of foreign trade and industrial development.

Tips

The 40 countries that have granted China's GSP tariff preferences are: 27 EU countries (France, Germany, Italy, Netherlands, Luxembourg, Belgium, Denmark, Ireland, Greece, Portugal, Spain, Sweden, Finland, Austria, Poland, Czech Republic , Slovakia, Hungary, Malta, Slovenia, Lithuania, Latvia, Estonia, Cyprus, Bulgaria, Romania, Croatia), the United Kingdom, 3 countries of the Eurasian Economic Union (Russia, Belarus, Kazakhstan)

Turkey, Ukraine, Canada, Switzerland, Liechtenstein, Japan, Norway, New Zealand, Australia.

2. What is the Certificate of Origin of the Generalized System of Preferences

The GSP certificate of origin is a preferential certificate of origin issued by the authorized agency of the beneficiary country in accordance with the rules of origin and related requirements of the GSP preference-giving country. It is an official documents for preferential certificate of origin for export products to enjoy the preferential tariff preference of the GSP country. The format of the certificate follows the "Generalized System of Preferences Certificate of Origin (Combination of Declaration and Certification) Form A" (Form A), which is printed by the beneficiary countries in accordance with the uniform format specified by the UNCTAD Special Committee on Preferences. And fill in and issue it in accordance with the relevant regulations of the favored country.

Tips

In China, the Customs is the only issuing agency for the GSP certificate of origin.

Undoubtedly, enjoying tariff preferences is the most important and critical use of the GSP certificate of origin. As far as China is concerned, due to the "demand" of foreign customers in international trade, the GSP certificate of origin issued by China has also been used for other purposes, including as a certificate of origin, for foreign exchange settlement and flow certification, trade practices, and Trade documents, etc.

3. Adjustment of GSP Certificate of Origin Visa Measures

With the rapid development of China economy and the continuous improvement of people's living standards, according to the World Bank standards, China is no longer a low-income or low-middle-income economic entity. For this reason, the European Union and many other GSP countries have successively announced the cancellation of the GSP treatment granted to China in recent years.

Focus

After the preference-giving countries notified the cancellation of the GSP treatment, China export goods can no longer enjoy tariff preferences by virtue of the GSP certificate of origin, and the relevant Customs visa measures will also be adjusted accordingly. Previously, after the Japanese Embassy and the Eurasian Economic Commission notified the cancellation of the GSP treatment granted to China, the Customs no longer issued the GSP preferential certificate of origin to Japan and the Eurasian Economic Union from April 1, 2019 and October 12, 2021respectively.

(1) In addition to EU member states, the countries that will no longer issue GSP certificates of origin include Canada, Turkey, Ukraine, Liechtenstein, and the United Kingdom, which has left the EU.

(2) The GSP certificate of origin will no longer be issued to the above-mentioned countries and it will be formally implemented from December 1.

(3) Up to now, only Norway, New Zealand, and Australia still retain the GSP treatment for China. For goods exported to these three countries, companies can still apply for a GSP certificate.

4. Companies tips

(1) Communicate and explain well with foreign customers.

It is recommended that export companies inform foreign customers of the requirements of the Customs announcement as soon as possible, communicate and explain well, and avoid the situation that the lack of the GSP certificate of origin may affect trade.

(2) Can apply for non-preferential certificate of origin or free trade agreement certificate of origin.

After December 1st, if an enterprise that needs to export goods to the above 32 countries and needs to apply for certificates of origin, it can apply for a non-preferential certificate of origin (also known as a general certificate of origin, abbreviated as CO in English). The non-preferential certificate of origin is a certificate issued in accordance with the country's non-preferential rules of origin. It has been self-printed at present. Compared with the GSP certificate of origin, it is more convenient and efficient to apply. Companies can complete the entire application process without leaving their homes.