EU Generalised Scheme of Preferences (GSP+) European Union Delegation Agricultural export promotion Workshop Bishkek, 19 October 2016 Table of content 1. Main features of the GSP+ 2. What GSP+ means for Kyrgyzstan 3. What the export helpdesk offers 4. How to use GSP+? 1
1. Main features of the GSP+ Overall Definition GSP+: Special Incentive Arrangement for Sustainable Development and Good Governance. Complete duty suspension for the same product categories. Granted to countries which ratify and implement core international conventions relating to human and labour rights, environment and good governance 1. Main features of the GSP+ 14 Beneficiary Countries Armenia, Bolivia, Cape Verde, Costa Rica, Ecuador, El Salvador, Georgia, Guatemala, Kyrgyzstan, Mongolia, Pakistan, Panama, Paraguay and Peru. Total Population : Estimated 335 Million People Total GSP 'Eligible' Exports to EU (2014): Estimated 9.8bn 4 2
1. Main features of the GSP+ Beneficiary Status Criteria (1) Application: Getting GSP+ preferences is not automatic. Countries must apply for the arrangement and fulfil certain criteria. Standard GSP Beneficiary: The country must meet the criteria to benefit from the standard GSP arrangement. Vulnerable: The country must be considered 'vulnerable'. A vulnerable country means a country 5 1. Main features of the GSP+ Beneficiary Status Criteria (2) Ratification: The country must have ratified the 27 core international conventions in the fields of human and labour rights, the environment, and good governance Implementation: The country must not present a serious failure in the implementation of the 27 core international conventions Binding Undertaking : The country must commit in writing to: 1. maintain ratification of the conventions and ensure their effective implementation; 2. accept the reporting and monitoring requirements imposed by the conventions; and 3. accept and cooperate with the EU monitoring procedure. 6 3
1. Main features of the GSP+ Loss of Preferences There are three different ways in which a country can lose some or all of its GSP+ preferences: 1. Safeguards 2. Temporary Withdrawal 3. Other Preferential Arrangements or Higher Level of Development 7 1. Main features of the GSP+ GSP+ Monitoring Beneficiary countries are expected to effectively implement the GSP+ conventions during the whole period of GSP+ In practice, that means real commitment to continuously improve the situation Continuous dialogue between the EU and the beneficiary country Basic documents: Scorecards (= list of issues) Biennial public reports Two year cycles for the whole duration of GSP+ 8 4
2. What GSP+ means for Kyrgyzstan? GSP+ status for Kyrgyzstan granted by EU in January 2016: offers opportunities for Kyrgyzstan to increase and diversify its export and strengthen its economy Kyrgyz exporters will be able supply to the EU at zero tariff rate agricultural products, food products, tobacco, and textiles, felt products, clothing, including leather, and carpet This is a unilateral measure taken by the EU, the customs tariffs imposed by Kyrgyzstan on imports from the EU will remain in place. 2. What GSP+ means for Kyrgyzstan? 6,200 products eligible with no duties Complete list is Annex IX, EU Reg. 978/2012 Market reach, 28 countries without borders, 500 mio. consumers 1 st trading power, 16% of world exports and imports 5
2. What GSP+ means for Kyrgyzstan? - Agricultural products covered: fruits, processed fruits (canned goods, juice), dried fruits and nuts (walnuts, almonds, pistachios), raw materials (beans, peas), food products, tobacco etc. - Need to implement 27 international conventions on human rights, good governance, labour and environmental standards (responsibility from the Gvt) - Business community can play a significant role - Improving human rights, including labour standards, is win-win situation for both Kyrgyzstan and the EU 3. What the export helpdesk offers Import conditions for each product exported to the EU market Health, safety, technical standards, marketing standards Custom duties, duty discounts, quota database (link) How to make use of reduced duties? (trade preferences) Rules and proofs of origin Who to contact for advice? Competent authorities in MS, customs offices, chambers of commerce Trade statistics how much of my product is already exported to the EU? All trade flows product by product, country by country from 2002 till 2014 6
3. What the export helpdesk offers Available online All information free of charge! Our data are "real life data" frequent updates Trade figures are at hand (total or product-specific) Contact form to lodge individual requests we respond within 3 working days 4. But how to use GSP+? http://exporthelp.europa.eu/thdapp/index.htm (Export Helpdesk) Step 1: Check general import requirements Health, safety, technical standards, marketing standards Step 2: Check GSP+ product coverage Step 3: Check rules of origin criteria Step 4: Prepare documentary evidence (Proof of origin) 7
EU Import Requirements General requirements = the import procedures to respect (customs declarations, commercial invoice, freight insurance, etc) Specific requirements on what the product, its label and its packaging needs to fulfill for EU market access (health and safety, technical standards, labelling & packaging, food safety, productspecific marketing standards, etc) Harmonised for all 28 Member States How does it work? 8
1 ST STEP Go to "My export" and define the product code for your product 9
19 My export form 20 The system helps you find the code 10
2 ND STEP Fill in the search form 22 What? Where from? Where to? 11
YOUR SEARCH RESULTS The results on screen 12
25 Requirements EU requirements for "edible fruits and nuts" - explained - with legal references & links to EurLex - the competent authorities dealing with the requirement in the EU member state 26 Internal taxes What you can find in this section of the result page? VAT rate VAT provisions applying in Germany VAT provisions for the EU Import procedures Germany Import procedures EU Authority contact points 13
27 Tariffs Thanks to GSP+ the custom duty went down from 4% to 0% 28 Rules of origin Rules of origin differ from product to product Links leading to detailed rules and explanations 14
3 RD STEP Statistics trade figures 30 Trade statistics 15
31 More questions? Contact the EU Delegation to Kyrgyzstan Or lodge an enquiry via the website More information on GSP and Export helpdesk (Including the GSP Report) http://ec.europa.eu/trade/policy/countries-andregions/development/generalised-scheme-of-preferences/ http://exporthelp.europa.eu/thdapp/index.htm 32 16