2. Presentation to Exporters
Agenda
1. Project Background
2. Requirements of New EU GSP Regulations
3. Future Developments
GSP Automation
Support Mechanisms
4. Open Forum
5. Seminar Closure
September 2013
Presentation to Exporters

3. Presentation to Exporters
GSP Project
Item 1.
Project Background
September 2013
Presentation to Exporters

4. European Union – Rules on GSP
Generalised System of Preferences (GSP)
EU Council Regulation 732/2008 (HL)
EU Council Regulation 2913/92 (Code or HL)
Operational Legislation
EU Commission Regulation 2454/93 (Provisions)
Presentation to Exporters
September 2013

5. World Trade Organisation - GATT
WTO --- Doha Development Agenda (Doha Round)
In the context of the Doha Development Agenda, the need to ensure a better integration of developing countries into the world economy has been recognised, in particular through improved access to the markets of developed countries.
For that purpose, the rules of preferential origin should be simplified and, where appropriate, made less stringent, so that products originating in beneficiary countries can actually benefit from the preferences granted.
September 2013
Presentation to Exporters

6. European Union: GSP Reg. 2454/93
EU’s Stated Position:
GSP Rules of Origin too complex and restrictive - New approach required
Rules of preferential origin should be simplified and made less stringent
Ensure preferences benefit those who need them ---- while
Protecting the own resources of the EU ---- industry and revenue
September 2013
Presentation to Exporters

7. European Union – Rules on GSP
New
Generalised System of Preferences (GSP)
EU Council Regulation 978/2012 (HL) -- New
EU Council Regulation 2913/92 CCC (Code)
Operational Legislation
EU Commission Regulation 2454/93 -- Amended (Provisions)
EU Commissions Regulation 1063/10 (Amendment)
September 2013
Presentation to Exporters

8. European Union – Rules on GSP
EU Regulation 978/ BENEFITS Article GSP Preference granted under a : general arrangement - Chapter II Art’s special incentive arrangement - Ch. III Art’s special arrangement for LDC’s - Ch. IV Art’s
September 2013
Presentation to Exporters

9. European Union – Rules on GSP
EU Regulation 978/ OBLIGATIONS
The obligations - EU Reg’s. 978 and 2454/93 - (Reg.1063/10)
In general
Ratification of all necessary conventions etc
Set up administrative structures to manage the scheme
Intro – modern methods for data recoding/processing
Acceptance of monitoring of adherence to rules
Carrying out checks/audits – requested and random
Signing of a mutual cooperation arrangement with the EU
September 2013
Presentation to Exporters

10. European Union – Rules on GSP
Common Provisions Article To benefit from the tariff preferences, the products for which the tariff preference are claimed shall originate in a beneficiary country
September 2013
Presentation to Exporters

11. European Union – Rules on GSP
Common Provisions
Article 33.2.
For the purposes of the preferential arrangements
referred to in Article 1 (2) of this Regulation the rules
of origin concerning the definition of the concept of
originating products, the procedures and the methods
of administrative cooperation related thereto shall be
those laid down in Regulation 2454 /93
September 2013
Presentation to Exporters

12. European Union: GSP Reg. 2454/93
Result /10 amending 2454/93 Changes to – 1 Rules of preferential origin – cumulation etc. 2 Undertakings on compliance requirements – - and – 3 Operational procedures of the system
September 2013
Presentation to Exporters

13. Changes to Rules of Preferential Origin
Results:
Simplification of Rules
Increased flexibility where value criteria do not apply
Rules reflect different industrial capacities
For least developed countries threshold as high as possible
Maximum content of non-originating material increased
Increased flexibility with materials not satisfying the rules
‘Cumulation’ rules simplified and made less stringent
September 2013
Presentation to Exporters

14. Ex - WTO (GATT) --- Doha Development Agenda
European Union
---- EU–BD Trade Policy Support Programme ----
Ex - WTO (GATT) --- Doha Development Agenda
Strengthening the WTO commitment to supporting the developing countries
The EU-BD Trade Policy Support Programme gives practical expression to the EU’s commitment to the principles of the ‘Doha Agenda’
September 2013
Presentation to Exporters

15. Trade Policy Support – EU /BD
1. EU GSP rules have changed – Reg. 1063/10
2. To assist with introducing the operational changes and ensuring compliance with the new GSP regulations the EU is assisting the Export Promotion Board through:
intensively supporting automation of the GSP system.
assisting in developing necessary support mechanisms
3. Administrative Cooperation Arrangement
September 2013
Presentation to Exporters

16. Presentation to Exporters
GSP Project
Item 2.
Requirements
of new
EU GSP Regulations
EU Reg. 2454/93 as amended by 1063/10
September 2013
Presentation to Exporters

17. Presentation to Exporters
European Union: GSP Reg. 1063/10
Preamble to EU Reg. 1063/10
Paragraph(24)
Access to the scheme should be conditional upon beneficiary countries (BD) putting into place and maintaining administrative structures permitting the efficient management of the scheme, and undertaking to provide all necessary support in the event of a request from the Commission for the monitoring of the proper management of the scheme.
MBER
September 2013
Presentation to Exporters

18. Undertaking on Compliance
Beneficiary Country – GSP system
Admin. structures to implement / maintain system
Cooperate with EU Commission on verification (req)
(Mutual Cooperation Arrangement -condition for granting preference)
Regular-randon verification controls - risk managed
Verification at premises – post clearance audit
Allow participation by EU officials in verification
Reply to queries within specific time frames
September 2013
Presentation to Exporters

19. Consequences of Non Compliance
Individual transactions
Refused preference if conditions of 2454/93 not met
Beneficiary country
Failure to comply with EU Regulation 2454/93 as amended (or habitual failure to respond to queries in time) “may --- entail withdrawal of preferences under the scheme for that country”
September 2013
Presentation to Exporters

20. Presentation to Exporters
EU GSP REGULATIONS
Annexes to EU Reg. 1063/10
Annex 13a - Workings or Processing conferring origin
13b - Materials excluded from regional cumulation
13c - Application to become Registered Exporter
13d - Statement of Origin
Annex Statement of Origin Form A
Annex Invoice Declaration
September 2013
Presentation to Exporters

21. Presentation to Exporters
EU GSP REGULATIONS
EU Reg. 1063/10 - Article 69
Registered Exporters -
Establishment
of a
REGISTER of EXPORTERS
September 2013
Presentation to Exporters

22. EU GSP REGULATIONS- Data-base
EU Reg.1063 /10 – Article 69
3. The Commission shall establish an electronic data- base of registered exporters.
Only the Commission shall have an access to the data-base and the data contained therein. The authorities ---shall ensure that data are kept up to date, and are complete and accurate.
The data -- shall be disclosed to the public via the internet, with exceptions --- Article 92.
Personal data shall be transferred only in accordance with Article 9 of Regulation (EC) No 45/2001.
September 2013
Presentation to Exporters

23. EU GSP REGULATIONS – Confidentiality
EU Reg. 1063/10 – Article 69 – Confidentiality – Data Protection
4. This Regulation shall in no way affect the level of protection of individuals with regard to the processing of personal data under the provisions of European Union and national law and, in particular, does not alter either the obligations of Member States relating to their processing of personal data under Directive 95/46/EC or the obligations of the European Union institutions and bodies relating to their processing of personal data under Regulation (EC) No 45/2001 when fulfilling their responsibilities.
September 2013
Presentation to Exporters

24. Presentation to Exporters
EU GSP REGULATIONS
EU Reg. 1063/10 – Article 69 – Confidentiality – Data Protection
Identification and registration data of exporters, constituted by the set of data listed in points 1, 3 (relating to description of activities), 4 and 5 of Annex 13c shall be published by the Commission on the internet only if exporters have freely given prior specific and informed written consent.
September 2013
Presentation to Exporters

25. Presentation to Exporters
Registered Exporters
Exporters registered with competent authorities of BD
“to facilitate targeted post-export controls”
 Electronic record of registered exporters established and maintained by and in BD
Record of reg. exp. communicated to EU Commission by BD’s competent governmental authority
 Commission - - Central data-base of registered exporters through which operators can check that their supplier is a registered exporter in BD
September 2013
Presentation to Exporters

26. Presentation to Exporters
EPB Registration
Exporter Information File(EIF)in GSP Online
REX Application Form (EU Reg.1063 Annex 13c)
Exporter’s name, address, country
Contact details – phone, fax,
Business activity description
Description of export goods by exporter & HS Codes
List of undertakings by exporter
Public release consent
Signature, place, and date
Official Use: Reg. No., Date, Reg. Valid Since, Signature / Stamp
Additional : Names & addresses of related companies/factories of the Group
September 2013
Presentation to Exporters

27. Presentation to Exporters
EU GSP REGULATIONS
EU Reg. 1063/10 - Article 92 -Register of Exporters
Registration
To be registered, exporters shall lodge an application with the BD authorities referred to in Article 69(1)(a), using the form a model of which is set out in Annex 13c. By the completion of the form exporters give consent to the storage of the information provided in the database of the Commission and to the publication of non-confidential data on the internet.
Application shall be accepted by the competent authorities only if it is complete.
September 2013
Presentation to Exporters

28. Presentation to Exporters
EU GSP REGULATIONS
EU Reg. 1063/10 - Article 93 – Registered Exporters
1. Registered exporters who no longer meet the conditions for exporting any goods under the scheme, or no longer intend to export such goods, shall inform the competent authorities in BD who shall immediately remove them from the record of registered exporters kept in Bangladesh.
September 2013
Presentation to Exporters

29. Presentation to Exporters
EU GSP REGULATIONS
EU Reg /10 - Article 93 – Registered Exporters
2. Without prejudice to the system of penalties and sanctions applicable in BD, where registered exporters intentionally or negligently draw up, or cause to be drawn up, a statement on origin or any supporting document which contains incorrect information which leads to irregularly or fraudulently obtaining the benefit of preferential tariff treatment, the BD’s competent authorities shall withdraw the exporter from the record of registered exporters ----
September 2013
Presentation to Exporters

30. Presentation to Exporters
EU GSP REGULATIONS
EU Reg /10 - Article 93 – Registered Exporters
4. Exporters who have been removed from the record of registered exporters by the competent authorities in accordance with paragraph 2 may only be re-introduced into the record of registered exporters once they have proved to the competent authorities in BD that they remedied the situation which led to their withdrawal.
September 2013
Presentation to Exporters

31. Presentation to Exporters
EU GSP REGULATIONS
EU Reg /10 - Article 94 - Registered Exporters
Exporters, registered or not, shall comply with the following obligations:
they shall maintain appropriate commercial accounting records for production and supply of goods qualifying for preferential treatment;
(b) they shall keep available all evidence relating to the material used in ---
(c) they shall keep all customs documentation relating to materials used in –
(d) they shall keep for at least 3 years from the end of the year in which the statement on origin was made out, or more if required by law, records of:
(i) the statements on origin they made out; and
(ii) their originating and non-originating materials, production and stock accounts.
September 2013
Presentation to Exporters

32. Presentation to Exporters
EU GSP REGULATIONS
EU Reg /10 - Article 94 - Registered Exporters
The records referred to in point (d) of the first sub-paragraph may be electronic but shall allow the materials used in the manufacture of the exported products to be traced and their originating status to be confirmed.
2. The obligations provided for in paragraph 1 shall also apply to suppliers who provide exporters with suppliers’ declarations certifying the originating status of the goods they supply.
September 2013
Presentation to Exporters

33. Presentation to Exporters
EU GSP REGULATIONS
EU Reg /10 – Article 97g - Control of Origin
2. The controls referred to in shall ensure the continued compliance of exporters with their obligations.
They shall be carried out at intervals determined on the basis of appropriate risk analysis criteria. For that purpose, the competent authorities of BD shall require exporters to provide copies or a list of the statements on origin they have made out.
September 2013
Presentation to Exporters

34. Presentation to Exporters
EU GSP REGULATIONS
EU Reg /10 – Article 97g - Control of Origin
3. The competent authorities of BD shall have the right to call for any evidence and to carry out any inspection of the exporter’s accounts and, where appropriate, those of producers supplying him, including at the premises, or any other check considered appropriate.
September 2013
Presentation to Exporters

35. Presentation to Exporters
EU GSP REGULATIONS
EU Reg /10 - Article 97h - Verification
Subsequent verifications of statements on origin shall be carried out at random or whenever the customs authorities of Member States have reasonable doubts as to their authenticity, et al .
The requesting Member State shall set a 6-month initial deadline to communicate the results of the verification, starting from the date of the verification request,
September 2013
Presentation to Exporters

36. EU GSP REGULATIONS - Post Clearance Audit
Audits will be carried out on:
Request from the EU
Selection by EPB on ‘Risk criteria’ basis
Random selection by EPB
September 2013
Presentation to Exporters

37. European Union – Rules on GSP
ORIGIN --- Art’s 72 and 73
Goods considered originating in a beneficiary country
1. Products:
wholly obtained in that country (Art 75)
incorporating non wholly obtained goods (Art 76 Annex 13a)
2. Condition for origin shall be fulfilled in beneficiary country
3. Exported goods when returned regarded as non orginating
September 2013
Presentation to Exporters

38. European Union – Rules on GSP
Origin --- Two main conditions
Minimum amount of originating goods (Annex 13a)
- or maximum amount of non originating goods -
Substantial process carried out on goods (Annex 13a)
Article 78
List processes which are not regarded as substantial
September 2013
Presentation to Exporters

39. European Union – Rules on GSP
Origin --- determination on value – Art 77 Ex-works price: In cases were prices of non-originating materials fluctuate, average prices ex works for the goods and average value of the non-originating goods, calculated over a period of time, may be used
September 2013
Presentation to Exporters

40. European Union – Rules on GSP
Origin Cumulation – Art. 84
Four (4) type of Cumulation
Bilateral --- EU status goods
Nor., Switz. and Turkey --- Originating in
Regional --- Four regions
Extended --- EU Trade Agreements
September 2013
Presentation to Exporters

41. European Union – Rules on GSP
Cumulation
Bilateral --- EU status goods - EUR. 1 Art. 97v
Nor., Switz., Turkey --- Conditions Ex. Ch 1 to 24
Regional -- Four Regions - inter regional – Art. 86
Textiles -- beyond operations set out in Art. 78 and in Annex 16
Extended -- EU FTA –Rules of origin as per FTA
September 2013
Presentation to Exporters

42. European Union – Rules on GSP
Regional Cumulation --- Four Groups –Art. 86
Group I: Brunei, Cambodia, Indonesia, Laos, Vietnam
Malaysia, Philippines, Singapore, Thailand
Group III: Bolivia, Colombia, Costa Rica, Ecuador, Peru,
El Salvador, Guatemala, Honduras, Nicaragua,
Panama, Venezuela
Group III: Bangladesh, Bhutan, India, Maldives, Nepal,
Pakistan, Sri Lanka
Group IV: Argentina, Brazil, Paraguay, Uruguay
September 2013
Presentation to Exporters

43. Presentation to Exporters
GSP Project
Item 3.
Future Developments
September 2013
Presentation to Exporters

44. European Union – Rules on GSP
Origin ---- Declaration
Up to the introduction of the Registered Exporters scheme
Two methods:
Issue of Form A
Statement of Origin on invoice
Post introduction of Registered Exporters scheme
Certification by registered exporter
September 2013
Presentation to Exporters

45. Operational Procedures --- Proposed Changes
Present procedures
Authorities of beneficiary countries certify origin of products,
Results
importers do not pay duty because they acted in good faith
 loss to the EU’s own resources and to the EU taxpayer
New procedures
Exporters in the best position to know the origin of their products,
Appropriate to require that exporters directly provide their
customers with statements on origin.
September 2013
Presentation to Exporters

46. GSP - Access to the scheme conditional upon - Summary
Administrative structures - in place / maintained in beneficiary countries
Undertaking - to provide support in event of a request from the Commission
System of administrative cooperation - between EU and beneficiary countries
Role and responsibility of exporters - in declaring origin clearly defined
Role of administrative authorities - in managing the system set out clearly
Contents of statements on origin - should be specified,
Cases when EU customs may refuse - to accept statement or want verification
September 2012
Presentation to Exporters

47. Presentation to Exporters
GSP Project
Item 4.
OPEN FORUM
September 2013
Presentation to Exporters

48. Presentation to Exporters
GSP Project
Item 5.
SEMINAR CLOSURE
September 2013
Presentation to Exporters

49. THANK YOU FOR YOUR ATTENTION
GSP Project
THANK YOU FOR YOUR ATTENTION
September 2012
Presentation to Exporters