Norwegian Directorate of Customs and Excise. Generalized System of Preferences (GSP)
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1 Norwegian Directorate of Customs and Excise Generalized System of Preferences (GSP)
2 Norway - A small country, passed 5 million inhabitants in But very high purchasing power. GDP/capita PPP of nearly USD , which is 3 rd highest in the world. - Oil/gas, fish and offshore/shipping technology key export products - Import of agricultural products relatively high due to geographic conditions and high production costs. Side 2
3 Norway and Free Trade - Norway is not part of the European Union, but a founding member of the European Free Trade Association (EFTA) - today consisting of Norway, Switzerland, Iceland and Liechtenstein. - Norway has as per today concluded 25 preferential free trade agreements through EFTA, while negotiations are underway with a number of free trade partners. Side 3
4 EFTA Free Trade Map Side 4
5 The GSP system In the Norwegian GSP system Sri Lanka is a GSP+ country. As a GSP+ country Sri Lanka will receive a better offer than ordinary GSP countries. You will get duty free access for goods under Chapters 61-63, as well as 50 per cent or 100 per cent duty free access for certain agricultural goods. Side 5
6 The GSP system There is no demands in the Norwegian GSP-system relating to implement core international conventions on human and labour rights, sustainable development and good governance. The Norwegian GSP system is amended every 3 year. Side 6
7 Norway and Sri Lanka - Sri Lanka exports mainly too: - USA, UK, India and Germany - Why not export more to Norway? - We don t have any textile production in Norway, no tea production and no rice production. Side 7
8 Total Exports from Sri Lanka to the world - Country wise Country USD M Share % Rank U.S.A. 2114,44 23,03 1 U.K. 1058,00 11,52 2 INDIA 566,37 6,17 3 ITALY 507,82 5,53 4 BELGIUM 463,96 5,05 5 GERMENY 452,22 4,93 6 RUSSIA 262,26 2,86 7 U.A.E. 219,65 2,39 8 JAPAN 215,50 2,35 9 IRAN 195,96 2,13 10 FRANCE 175,73 1,91 11 NETHERLANDS 158,62 1,73 12 CANADA 142,42 1,55 13 TURKEY 139,48 1,52 14 AUSTRALIA 134,34 1,46 15 CHINA 108,12 1,18 16 SYRIA 106,69 1,16 17 HONG KONG 105,26 1,15 18 MEXICO 103,52 1,13 19 SINGAPORE 95,45 1,04 20 SWITZERLAND 91,75 1,00 21 IRAQ 87,17 0,95 22 INDONESIA 87,01 0,95 23 PAKISTAN 82,75 0,90 24 ISRAEL 74,58 0,81 25 LIBYA 67,91 0,74 26 MALAYSIA 67,31 0,73 27 THAILAND 66,49 0,72 28 SWEDEN 61,53 0,67 29 NORWAY 19,62 0,21 50 Side 8
9 Total Exports from Sri Lanka to the world HSCO Description US $ M 61 & 62 Apparel 3778, Tea 1403, Retreated or used pneumatic tyres of rubber 330, Diamonds 330, New pneumatic tyres, of rubber 207, Gloves, mittens & mitts 176, Cinnamon & Cinnamon tree flowers 130, Natural rubber 123, Raw bristle fibre of coconut (coir) 112, Coconuts,cashew nuts, fresh or dried 77, Activated carbon; activated natural mineral products 76, Other articles of vulcanised rubber other than hard rubber 76, Pepper 70, Fish fillets & other fish meat 65, Precious stones; gem 58,12 Insulated wire, cable & other insulated electric conductors; 8544 winding wires 57,28 95 Toys, games & sports requisites 55,70 Other vessels for the transport of goods & both persons and goods 54,45 44 Wood & articles of wood 53, Fish, frozen 48,03 Other made up textile articles; sets; worn clothing and worn 63 textile articles; r 47,35 Prepared animal fodder; preperations of a kind used in 2309 animal feeding 46, Food preperations not elsewhere specified or included 45,18 Printed books, news papers & other products of printing 49 industry 42, Bicycles & other cycles 40, Electrical transformers 32,45
10 GSP exception from WTO principles GSP - a recognised exception from the GATT/WTO principles on mostfavoured nation treatment Allows industrialised countries on an autonomous basis to grant preferential tariff treatment to products from developing countries at a lower duty rate than to the rest of the world. Side 10
11 The GSP system The European Union, Australia, New Zealand, USA, Canada, Japan, Turkey, Switzerland together with certain countries in Eastern Europe have implemented equivalent schemes to that of Norway On 1 March 1998, the Norwegian GSP rules of origin were harmonised with the rules applied by the European Union and Switzerland Side 11
12 The GSP system New GSP regulation from 1 January 2011 This regulation relaxes and simplifies rules and procedures Side 12
13 The GSP system What conditions must be met in order to benefit from the GSPsystem? The goods must orginate in a beneficiary country in accordance with the Rules of Origin The goods must be transported directly from the beneficiary country A valid proof of origin must be submitted Side 13
14 The GSP system Why rules of origin? Promote domestic production Make sure that only originating products from your country obtain preferential treatment Prevent third country products from being shipped through a beneficiary country Side 14
15 Rules of Origin determine the criteria on how a product must be manufactured in order to obtain status as an originating product eligible for preferential tariff treatment regulate the quantities of non-originating materials that may be used in the production and/or how such materials must be worked or processed in order to obtain preferential status for the final product Side 15
16 Rules of Origin - Main principles Wholly obtained products Sufficiently worked or processed products Accumulation of origin Side 16
17 Products "wholly obtained The following products (a.o.) are considered to be wholly obtained in a GSP-country: - mineral products extracted there - vegetable products harvested there - live animals born and raised there - products from live animals raised there - products obtained by hunting and fishing conducted there - products of sea fishing and other products taken from the sea - outside the territorial waters by its vessels - used articles collected, fit only for the recovery of raw materials - goods manufactured there exclusively from the above products Side 17
18 General Tolerance Rule - Allows input of materials from third countries if: - 15 % of the weight of the product for products in Chapters 2 and 4 to 24, except for processed fishery products of chapter % of the ex-works price of product for products in Chapters 25-97, except for products in Chapters 50 to 63 of the Harmonised System Side 18
19 Territorial requirements Principle of territoriality - the production of an originating product must take place without interruption in the GSP-country concerned Side 19
20 Direct Transport Rule Transport through third countries allowed, provided that the goods do not undergo operations other than: unloading, reloading and splitting up of consignments operations to preserve the product in good condition The products must remain under customs surveillance Side 20
21 Proof of Origin Certificate of Origin, Form A Origin declaration - value limit Replacement certificate - Form A issued in EU, Switzerland or Norway Side 21
22 Form A.pdf Side 22
23 Origin declaration The exporter of the products covered by this document declares that, except where otherwise clearly indicated, these products are of Moldovan preferential origin according to the rules of origin of the Norwegian Generalized System of Preferences.. (place and date).... (signature of the exporter; name of person signing must be indicated in clear manuscript ) Side 23
24 Regional Cumulasjon This is allowed between the countries of one of the regional groups recognised by the EU, Norway, Switzerland or Turkey. Materials originating in one country of the group which are further worked or processed in another beneficiary country of the same group are considered to originate in the latter country. Side 24
25 Regional Cumulation The regionals groups are: Group 1:Brunei-Darussalam, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, Vietnam (EU, Switzerland, Norway) Group 2: Bolivia, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama. Peru, Venezuela (EU) Group 3: Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, Sri Lanka (EU, Norway) Group 4: Argentina, Brazil, Paraguay, Uruguay (EU) (SAARC: Norway does not allow cumulation from Chapter 1-24) Side 25
26 Issue of Proof of Origin Certificate of Origin Form A - completed and issued by the exporter - application part (form) must be duly completed - presentation of necessary supporting documentation - endorsement by a competent authority of the GSP-country Origin declaration - Completed and issued by the exporter Side 26
27 Supporting Documents What type of supporting documents will you need to demonstrate to your authorities that your products have met the rules of origin? Invoice(s) Manufacture declaration(s) Import declaration(s) Side 27
28 Rights of Customs in the exporting country The customs authorities have at any time the right to: ask for information inspect the exporter s accounts, commercial papers, documents and the manufacturing process verify the accuracy of the proof of origin at any time and without prior announcement Side 28
29 New procedure applicable from 2017 From 1 January 2017, a system of registered exporters will become applicable in EU, Switzerland and Norway. This system shall apply in the following cases: (a) originating products exported by a registered exporter (b) any consignment of one or more packages containing originating products exported by any exporter, where the total value of the originating products consigned does not exceed EUR Side 29
30 Summary In order to obtain preferential treatment on importation of a GSPproduct, the following conditions apply: - the product must be manufactured in a beneficiary developing country for which the GSP-system has been implemented - the product must be manufactured in the beneficiary developing country concerned in accordance with the applicable Rules of Origin of the GSP-system - the product must be transported directly from the exporting country concerned Side 30
31 Summary - the product must at the time of importation (customs clearance) be covered by a satisfactory proof of origin - the importer must request (claim) GSP preferential treatment at the time of customs clearance of the product Side 31
32 Duty rates HS-no. Description of products Bound rate of duty, ad Bound rate of duty, specific MFN - rate of duty GSP+ Sri Lanka valorem Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled. - Onions and shallots : - - Onions : From 1 September to 30 June : Red onions 47,0% 1,09 1,09 0, Other 47,0% 1,09 1,09 0, From 1 July to 31 August : Red onions 85,0% 2,14 2,14 1, Other 85,0% 2,14 2,14 1, Shallots : From 1 September to 30 June 81,0% 9,02 1,09 Free From 1 July to 31 August 81,0% 9,02 2,14 Free Garlic 0,03 Free Free - Leeks and other alliaceous vegetables : Spring onion 102,0% 6,66 6,66 Free - - Leeks : From 20 February to 31 May 102,0% 6,66 6,66 Free From 1 June to 19 February 102,0% 6,66 6,66 5, Other alliaceous vegetables 102,0% 6,66 6,66 Free Side 32
33 Duty rates HS-no. Description of products Bound rate of duty, ad Bound rate of duty, specific MFN - rate of duty GSP+ Sri Lanka valorem T-shirts, singlets and other vests, knitted or crocheted Of cotton 10,7% 10,7% Free - Of other textile materials : Of man-made fibres 12,0% 10,7% Free Other 10,7% 10,7% Free Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted. - Of wool or fine animal hair : Of wool 10,7% 10,7% Free Of Kashmir (cashmere) goats 10,7% 10,7% Free Other 10,7% 10,7% Free Of cotton 10,7% 10,7% Free Of man-made fibres 10,7% 10,7% Free Of other textile materials 10,7% 10,7% Free Side 33
34 Duty rates HS-no. Description of products Bound rate of duty, ad valorem Men's or boys shirts. Bound rate of duty, specific MFN - rate of duty GSP+ Sri Lanka Of cotton Of man-made fibres Of other textile materials 12,0% 10,7% Free 12,0% 10,7% Free 12,0% 10,7% Free Women's or girls' blouses, shirts and shirt-blouses Of silk or silk waste Of wool or fine animal hair Of cotton Of man-made fibres Of other textile materials 12,0% 10,7% Free 12,0% 10,7% Free 12,0% 10,7% Free 12,0% 10,7% Free 12,0% 10,7% Free Side 34
35 Addresses in Norway Addresses in Norway: Ministry of Foreign Affairs, Box 8114 Dep., N-0032 OSLO. Telephone: +/47/ Ministry of Finance, Box 8008 Dep., N-0030 OSLO. Telephone: +/47/ Directorate of Norwegian Customs and Excise, P.O. Box 8122 Dep., N-0032 OSLO. Telephone: +/47/ Side 35
36 Customs web-pages Main pages: GSP-regulations: English Free Trade GSP Side 36
37 Questions? Side 37
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