Details for Active GSP
EU-GSP+
EU Generalized System of Preferences Plus
Maximizing Export Potential through
the EU-GSP+ Scheme
for Philippine Businesses
What is the EU-GSP+?
The EU Generalized System of Preferences Plus (EU-GSP+) is a special trade arrangement provided by the European Union to developing countries, including the Philippines. It grants duty-free and reduced tariff access to the European market for over 6,200 products. This scheme encourages sustainable development and promotes good governance by offering these trade benefits in return for compliance with international conventions.
For Filipino businesses, this means a valuable opportunity to expand their market reach into the EU, enjoying a competitive edge through tariff-free access on a wide range of goods.
Key Benefits of the EU-GSP+ for Philippine Exporters
Under the GSP+ arrangement, most products exported from the Philippines can enter the EU with zero tariffs, making them more price-competitive. This is particularly advantageous for businesses in industries such as:
- Agriculture
- Textiles
and
Garments - Manufacturing
and
Electronics
-
Agriculture
Bananas, pineapples, coconut products, and other fruits.
-
Textiles and Garments
Apparel and textile goods produced in the Philippines can be exported duty-free.
-
Manufacturing and Electronics
Processed food, electronics, and mechanical appliances can also benefit from reduced or zero tariffs.
This translates to lower costs and better pricing for buyers in the EU, increasing the attractiveness of Philippine products in a highly competitive market.
With reduced or zero tariffs, Philippine products become more competitively priced, which is a key advantage in industries like agriculture, textiles, and manufacturing. This allows Filipino businesses to expand their market share in the EU and create stronger trade relationships with European importers.
The EU-GSP+ covers over 6,200 products, allowing businesses from various sectors to benefit. This wide coverage is especially beneficial for sectors such as:
- Agricultural
Goods - Industrial
and
Manufactured Goods - Textiles
and
Garments
-
Agricultural Goods
Including tropical fruits, coconut products, and seafood.
-
Industrial and Manufactured Goods
Such as electronics, furniture, and processed food products.
-
Textiles and Garments
A major export category for the Philippines.
By identifying eligible products, businesses can optimize their export strategy to take full advantage of the scheme.
How to Maximize the Benefits of EU-GSP+
For Philippine businesses to benefit from the EU-GSP+, they must follow these critical steps:
To benefit from GSP+, exporters must first ensure that their products are eligible for preferential tariffs. This can be done by checking the Combined Nomenclature (CN) Code and cross-referencing it with Annex V of Regulation (EU) No. 978/2012, which lists eligible products under the GSP+ arrangement.
The EU-GSP+ requires products to meet strict rules of origin. This means that:
Products must be wholly obtained in the Philippines (such as agricultural products or minerals), or
Products must have undergone sufficient transformation in the Philippines using imported materials.
For example, textile goods must undergo significant processing (such as garment manufacturing) to qualify for duty-free access. Compliance with these rules is essential for exporters to maintain GSP+ eligibility.
To benefit from GSP+, businesses must provide the necessary Certificate of Origin (Form A) or use the Registered Exporter (REX) System to self-certify the origin of their goods. The REX system streamlines the process by allowing businesses to register online and self-declare the origin of their goods, reducing administrative burdens.
Key Industries Benefiting from EU-GSP
Several industries in the Philippines benefit greatly from the GSP+ scheme, particularly:
The agricultural sector is one of the biggest beneficiaries, with products such as bananas, pineapples, coconut-based goods, and seafood enjoying duty-free access to the EU. This allows Philippine agricultural exporters to compete more effectively in the global market.
The Philippines’ thriving textile and garment industry enjoys significant benefits under GSP+. Philippine-made clothing and textiles are exempt from tariffs, allowing businesses to compete with other global players in the European fashion market.
Manufactured products, such as electronics, mechanical appliances, and processed food, also benefit from reduced or zero tariffs. This opens new doors for Filipino manufacturers to export more competitively to Europe.
Risks and the Potential for Temporary Withdrawal of GSP+ Benefits
While GSP+ offers considerable benefits, businesses should be aware of the potential risks involved, particularly regarding compliance. The EU reserves the right to temporarily withdraw GSP+ benefits if a country is found to be in violation of international conventions, including those related to:
FAQs for Philippine Exporters
Are all Philippine products eligible for EU-GSP+?
No. Only certain product categories are eligible. Exporters must verify product eligibility by checking the HS code in Annex V of Regulation (EU) No. 978/2012
What documentation is required to benefit from GSP+?
Exporters must submit a Certificate of Origin (Form A) or use the REX system to self-certify the origin of their products.
Is GSP+ permanent for the Philippines?
No. GSP+ benefits are subject to review and can be temporarily withdrawn if the Philippines fails to comply with the required international conventions.
Conclusion: Strategies for Long-Term Success
The EU-GSP+ scheme offers a remarkable opportunity for Philippine businesses to expand into the European market by providing preferential access. To fully leverage this advantage, businesses must:
By aligning their practices with the GSP+ standards, Philippine companies can boost their export competitiveness, increase revenue, and build lasting trade relationships in the European Union.
Document
United Kingdom DCTS
Developing Countries Trading Scheme
Maximizing Export Opportunities through the UK
Developing Countries Trading Scheme (DCTS) for Philippine Businesses
Overview of the UK Developing Countries Trading Scheme (DCTS)
The UK Generalized System of Preferences (GSP) is part of the Developing Countries Trading Scheme (DCTS), which was introduced by the UK government to promote economic development in developing countries. The DCTS provides preferential access to the UK market by offering reduced or zero tariffs on a wide range of products.
For Philippine businesses, this scheme represents a significant opportunity to export competitively priced goods to the UK, benefiting from favorable tariff rates.
Key Benefits of the UK DCTS for Philippine Exporters
Philippine businesses can benefit from duty-free or reduced tariffs on eligible goods under the DCTS, making exports to the UK more cost-effective and increasing the competitiveness of their products in the UK market. Some of the key products benefiting from these preferential terms include:
- Agricultural
Products - Textiles
and
Garments - Manufactured
Goods
-
Agricultural Products
Including coconut products, tropical fruits, and seafood.
-
Textiles and Garments
Clothing and textile products made in the Philippines can enter the UK market with reduced tariffs.
-
Manufactured Goods
Electronics, machinery, and other industrial products.
The DCTS covers a broad range of products, allowing Philippine exporters in diverse industries to take advantage of this preferential treatment. Products from agriculture, manufacturing, and textiles are particularly well-positioned to benefit from the tariff reductions.
By utilizing the DCTS, Philippine businesses can foster stronger trade ties with UK importers, providing them with high-quality, competitively priced goods. This helps to open new opportunities for long-term contracts and expanded market reach within the UK.
Step-by-Step Guide to Accessing UK DCTS Benefits
To maximize the advantages of the UK DCTS, Philippine exporters should follow these steps:
Philippine exporters must first ensure that their products are eligible for DCTS benefits. This can be done by referencing the UK’s Goods Classification Table and ensuring that the relevant tariff code for the product is included in the DCTS scheme.
Goods must meet the rules of origin under the DCTS, meaning:
The product must be wholly obtained in the Philippines (e.g., agricultural products or raw materials), or
The product must have undergone substantial transformation in the Philippines, meaning it meets specific thresholds for value addition or processing.
For example, textile goods must undergo significant manufacturing processes, such as weaving or garment production, to qualify for preferential access.
Exporters must submit proof of origin to benefit from the DCTS. The required documents include:
Certificate of Origin: This certifies that the goods meet the rules of origin.
Customs Documentation: Ensuring compliance with all customs regulations when exporting to the UK.
Under the HMRC's rules, exporters may be required to provide additional documents if requested by the UK customs authorities to verify the origin of the goods.
Key Sectors Benefiting from UK DCTS in the Philippines
The UK DCTS provides significant benefits to various sectors of the Philippine economy. Some of the most impacted sectors include:
Key agricultural exports such as bananas, pineapples, coconut oil, and seafood benefit from zero or reduced tariffs under the DCTS. This enables Filipino agricultural products to be competitively priced in the UK market.
The Philippine textile and garment industry can leverage the UK DCTS to expand its footprint in the UK. Clothing items such as shirts, dresses, and woven garments enjoy tariff reductions, allowing Filipino manufacturers to compete more effectively against other global exporters.
Manufactured goods, including electronic components, appliances, and mechanical equipment, are also eligible for tariff reductions, helping the Philippines increase exports in these high-value sectors.
Compliance and Risk Management: Temporary Withdrawal of DCTS Benefits
While the UK DCTS offers numerous benefits, there are certain risks associated with compliance. The UK government reserves the right to temporarily withdraw DCTS benefits if a country is found to be in violation of key international standards, including:
FAQs for Philippine Exporters
Are all Philippine products eligible for UK DCTS benefits?
No, only certain product categories are eligible under the DCTS. Exporters must verify their product’s eligibility by checking the tariff code in the UK’s Goods Classification Table.
What documentation is required to benefit from the UK DCTS?
Exporters must submit a Certificate of Origin and may be required to provide other supporting documents to verify that their goods meet the DCTS rules of origin.
Is the UK DCTS permanent for the Philippines?
No, the UK DCTS is subject to review, and benefits can be temporarily withdrawn if the Philippines fails to comply with international standards on labor, human rights, and environmental protection.
Conclusion: Strategies for Philippine Businesses
The UK DCTS under the Developing Countries Trading Scheme (DCTS) offers substantial opportunities for Philippine exporters to access the UK market at competitive prices. By ensuring product eligibility, adhering to rules of origin, and maintaining compliance with international standards, Filipino businesses can expand their presence in the UK and strengthen their trade relationships.
For assistance and further guidance, Philippine exporters can contact:
Document
Canada GSP
Canadian Generalized System of Preferences
Maximizing Export Opportunities through the Canadian
Generalized
System of Preferences (GSP) for Philippine Businesses
Overview of the Canadian Generalized System of Preferences (GSP)
The Canadian Generalized System of Preferences (GSP), also known as the General Preferential Tariff (GPT), provides reduced or zero tariffs on products exported from developing countries, including the Philippines. This system helps developing nations expand their exports by offering competitive access to the Canadian market. It was most recently extended until 31 December 2024 and remains a valuable tool for Philippine exporters to reduce costs and increase competitiveness.
Key Benefits of the Canadian GSP for Philippine Exporters
Under the Canadian GSP, Philippine exporters can benefit from zero or reduced tariffs on a wide range of products, including:
- Agricultural
Products - Textiles
and
Garments - Manufactured
Goods
-
Agricultural Products
such as coconut-based goods, tropical fruits, and seafood.
-
Textiles and Garments
Apparel products can enter Canada with reduced tariffs, creating opportunities for the Philippine textile industry.
-
Manufactured Goods
Industrial products such as electronics and machinery also benefit from this preferential treatment.
The GSP offers broad product coverage across various industries. Philippine exporters from sectors such as agriculture, textiles, and manufacturing can all benefit from tariff reductions. However, certain goods, particularly chemical products and some textiles, may be excluded from the GPT.
By taking advantage of the Canadian GSP, Philippine exporters can forge stronger trade relationships with Canadian buyers by offering competitive prices and high-quality products. This can lead to long-term trade deals and increase the presence of Philippine goods in Canada.
Step-by-Step Guide to Accessing Canadian GSP Benefits
For Philippine exporters to maximize the benefits of the Canadian GSP, they must follow these key steps:
The first step for exporters is to check whether their products are eligible for tariff reductions under the Canadian GSP. This can be done by reviewing the Canadian Customs Tariff, which outlines product coverage based on Harmonized System (HS) codes.
To qualify for GSP benefits, products must meet Canadian rules of origin:
Goods must either be wholly obtained in the Philippines or have undergone significant processing there. For example, at least 60% of the ex-factory price of the product must be added in the Philippines or another GSP-eligible country to meet the value-added threshold.
Cumulation is allowed, meaning inputs from other GPT beneficiary countries or Canada can count towards the value-added requirement.
Exporters must submit proof of origin through either:
Form A (Certificate of Origin) or,
An Exporter’s Statement of Origin. For textiles and apparel, Form B255 is required. Proper documentation ensures smoother customs processing and helps verify that the goods meet the required origin criteria.
Key Industries Benefiting from Canadian GSP
The Canadian GSP provides substantial benefits to several key industries in the Philippines, including:
Agricultural exports such as bananas, coconuts, and seafood are among the top beneficiaries of the GSP. Duty-free or reduced tariff access enables these products to be competitively priced in the Canadian market.
The Philippine textile industry stands to gain significantly from the GSP. Reduced tariffs on clothing and apparel products allow Filipino manufacturers to compete with other global exporters, especially in sectors like garments and fabrics.
Manufactured goods, including electronics and mechanical appliances, benefit from reduced tariffs under the Canadian GSP, which opens doors for increased exports in these high-value sectors.
Compliance and Risk Management:
Safeguard Measures
and Temporary Withdrawal
While the Canadian GSP provides significant advantages, exporters must be aware of potential compliance risks. Canada reserves the right to temporarily withdraw GSP benefits if certain conditions are not met, such as non-compliance with:
FAQs for Philippine Exporters
Are all Philippine products eligible for DCTS benefits?
No, only specific products are eligible for preferential tariffs under the GSP. Exporters must verify product eligibility by consulting the Canadian Customs Tariff.
What documentation is required to claim GSP benefits?
Exporters must submit a Certificate of Origin (Form A), Exporter’s Statement of Origin, or Form B255 for textiles and apparel goods.
Is the Canadian GSP permanent for the Philippines?
No, the GSP is subject to review, and benefits can be withdrawn if rules of origin or other criteria are violated.