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

        On October 25, the General Administration of Customs issued the Notice No. 84, 2021. Starting from December 1, 2021, the Customs will no longer issue GSPS certificates of origin to goods exported to eu member states, the United Kingdom, Canada, Turkey, Ukraine and Liechtenstein. Let us know the history of GSP and GSP co (CepA) in China, and what can be done after the relevant GSP CO (CEPA) is no longer issued.

I. What is the GSP

      The Generalized System of Preferences (GSP) is a Generalized, non-discriminatory and non-reciprocal tariff preference System that developed countries (favored countries) grant to developing countries and regions (favored countries) for the export of manufactured and semi-manufactured goods. Since the implementation of GSP in 1978, there have been 40 countries to give China GSP tariff preferences, most of which are China’s important trading partners, such as eu member states and Britain, Russia, Canada, Japan and so on. China has also actively used the GSP to expand exports to developed countries, playing an important role in the growth of foreign trade and industrial development.

      Treated with GSP tariff preferences of 40 countries in our country are: the European Union’s 27 countries (France, Germany, Italy, the Netherlands, Luxembourg, Belgium, Denmark, Ireland, Greece, Portugal, Spain, Sweden, Finland, Austria, Poland, the Czech republic, Slovakia, Hungary, Malta and Slovenia, Lithuania, Latvia, Estonia, Cyprus , Bulgaria, Romania, Croatia), The United Kingdom, Eurasian Economic Union (Russia, Belarus, Kazakhstan) Turkey, Ukraine, Canada, Switzerland, Liechtenstein, Japan, Norway, New Zealand, Australia.

II. What is GSP certificate of origin

        GSP CERTIFICATE of Origin is a preferential certificate of origin issued by an authorized agency of the beneficiary country in accordance with the rules of origin and relevant requirements of the beneficiary country of GSP. It is the official document certifizing that the export product enjoys the tariff preference of the beneficiary country of GSP. The certificate format is in accordance with the “GSP Certificate of Origin (Combined Declaration and Certification) Form A”, printed by the beneficiary country in accordance with the uniform format stipulated by the UNCTAD Special Committee on Preferences, and completed and issued in accordance with the relevant regulations of the donor country.

      In our country, customs is the only visa agency for GSP certificate of origin. There is no doubt that enjoying tariff preference is the most important and critical use of GSP co (CepA). For China, 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 liquidity, trade practices and trade documents. The club shall be printed and issued in accordance with the relevant regulations to the state of Hui.

III. Adjustment of GSP certificate of origin licensing measures

      With the rapid development of China’s economy and the continuous improvement of people’s living standards, According to the World Bank standard, China is no longer a low or medium low income economy. For this reason, the EU and other GSP countries announced in recent years to cancel the GSP treatment for China.

        After the cancellation of GSP treatment to the favored countries, China’s export commodities can no longer enjoy tariff preferences by means of GSP certificate of origin, and the relevant visa measures of the customs will be adjusted accordingly. Previously, after the Japanese Embassy and the Eurasian Economic Commission notified China of the cancellation of the GSP treatment, the customs has stopped issuing GSP certificates of origin to Japan on April 1, 2019 and to the Eurasian Economic Union on October 12, 2021 respectively.

        (I)Countries that will not issue GSP certificates of origin this time include Canada, Turkey, Ukraine, Liechtenstein and Britain, which has already left the EU.

        (II)The suspension of GSP certificates of origin for these countries will take effect from December 1.

        (III)Up to now, the country that still retains to give our country GSP treatment only remains Norway, New Zealand, Australia 3 countries, to the goods that exports to these 3 countries, the enterprise still can apply for GSP certificate.

IV. Suggestions for relevant enterprises

        (I)Communicate and explain with foreign customers. It is suggested that export enterprises inform foreign customers of the customs announcement requirements as soon as possible, do a good job of communication and explanation, and avoid the lack of GSP certificate of origin and affect the trade situation.

        (II)Can apply for Non-concessional Co (CEPA) or FREE Trade Agreement CO (CEPA).

        After December 1, enterprises need to export to. Non-concessional Certificate of Origin (CO) can be applied for goods from the above 32 countries who apply for a CERTIFICATE of origin (CO). Non-preferential certificate of origin is a certificate of origin for goods issued in accordance with the non-preferential rules of origin of the country. At present, self-printing has been realized. Compared with GSP certificate of origin, it is more convenient and efficient to apply for it.

Article source：General Administration of Customs, Shenzhen International Trade single window