Industry News

European Commission Revises GSP Rules of Origin

11/22/2010


On November 18, 2010 the European Commission (EC) adopted a regulation revising the rules of origin for products imported under the generalized system of preferences (GSP). The EC intends the revisions to relax and simplify the rules and procedures for developing countries, making them easier to understand and follow.  The new rules, which go into effect January 1, 2011, take into account specificities of different sectors of production and particular processing requirements. This includes allowing single-stage processing in many cases in the textiles and clothing sector, instead of the currently required two stage processes. Special provisions are included for Least Developed Countries (LDCs) which allow them to claim origin for many goods that are processed in their territories, even when the primary materials originate elsewhere. The EC also relaxed the rules for cumulation of origin and added Mercosur as a new cumulation region.

Additionally, the EC issued a new procedure for demonstrating proof of origin that will come into effect in 2017. Under this new system, increased responsibility will fall on operators. Instead of third country authorities conducting certification of origin, exporters who are registered via an electronic system will be expected to directly make out statements of origin. The EC hopes these changes will reduce red tape for businesses while allowing authorities in exporting countries to focus more on controls against fraud.

For further information, contact a Barnes/Richardson attorney.