What is Generalized System of Preferences (GSP) scheme? Please tell me about this scheme.
This scheme is designed for the purpose of contributing to the economic development of developing countries by applying more advantageous tariff rates for goods imported from developing countries than those from advanced nations.
1. Japan established a GSP scheme in August 1971 and currently grants GSP to 142 nations in 15 territories. (As of April 1st)
2. Japan grants preferences for selected agricultural and marine products (HS 1 to 24 categories) by selecting about 340 specified items (positive list system).
Preferences are granted to all mining and industrial products (HS 25 to 76 and 78 to 97 categories, approximately 3,300 items) except for specified items, such as petroleum and silk fabrics in consideration of domestic industrial conditions, etc.
The GSP tariff rates for agricultural and marine products covered by the scheme are reduced from the effective rates depending on the goods. Industrial products covered by the scheme are, in principle, given duty-free treatment, with the exception of "ceiling products" (products for which it is difficult to apply duty-free treatment in consideration of domestic industrial conditions) for which tariffs are reduced by 20, 40, 60, 80. or 100 percent of the effective rates.
Agricultural and marine products enjoyed the GSP until preferential treatment was suspended by cabinet order in consideration of damage to domestic industries, etc. (escape clause formula). Industrial products, in addition to such escape clause formula, enjoy the GSP with administration of a ceiling in consideration of the situation in domestic industries. The ceilings are calculated for each fiscal year.
3. In the case of importing goods from a country subject to the GSP scheme, a certificate of the place of origin testifying that the county covered by the GSP scheme is the original location should be submitted at the time of import declaration.