Difference between GSP and GSTP
Wednesday, May 24, 2017     Category : For Beginners

 

 

 

 

12GSP AND GSTP

 

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The strong feeling that it is necessary to accord some preferential treatment to promote the manufactured exports of the developing countries, some schemes of trade preference have been established.

 

Generalized System of Preferences (GSP)

 

The Generalised System of Preferences (GP) is a scheme designed by the UNCLAD to encourage exports of developing countries to developed countries. Under this scheme, developed countries grant duty concession on imports of specified manufactures and semi-manufactures from developing countries.

It was a resolution adopted at the UNCTAD-II, held in 1968 in New Delhi, that led to the introduction of the GM', which is the result of the realisation that temporary advantages in the form of generalised arrangements for special tariff treatment for developing countries in the market of developed countries may assist developing countries to increase their export earnings and so contribute to an acceleration in the areas of their economic growth.

The EEC countries and a number of other countries, such as the USA, Japan, Norway, New Zealand, Finland, Sweden, Hungary, Switzerland, Australia, Canada, Bulgaria and Poland have introduced the GSP.

The GSP facility is available only to developing countries; it is subject to certain stringent limitations.

The preferential rates of duty allowed on the import of manufactures and semi-manufactures and processed agricultural products differ in schemes of different developed countries because each country has developed its own GSP, keeping in view its local production base and certain other factors. Each scheme has a safeguard clause or an escape clause to protect the sensitive sectors in its economy.

A particular item is qualified for GSP benefits only if the following conditions are satisfied: (1) The product must be included in the GSP list.

(2) The country exporting the item should be declared under the GSP as a beneficiary country.

(3) The value added requirements/process criteria must be complied with.

(4) The product must be imported into the GSP donor country from a GSP beneficiary country.

(5) The exporter must send to his buyer/importer a certificate of origin in the prescribed fowl duly filled in and duly signed by him, and then certified by a designated Government authority.

 

 

Global System of Trado Proforoncea (GSTP)

 

It was a resolution adopted at the UNCTAD-II, held in 1968 in New Delhi, that led introduction of the GSP, which is the result of the realisation that temporary the form from of generalised arrangements for special tariff treatment for developing countries in the 0 of developed countries may assist developing countries to increase their export earnings and so convibute to an acceleration in the areas of their economic growth.

The EEC countries and a number of other countries, such as the USA, Japan, Norway, New Zealand, Finland, Sweden, Hungary, Switzerland, Australia, Canada, Bulgaria and Poland have introduced the GSP.

The GSP facility is available only to developing countries; it is subject to certain stringent limitations.

The preferential rates of duty allowed on the import of manufactures and semi-manufaaurts and processed agricultural products differ in schemes of different developed countries because each country has developed its own GSP, keeping in view its local production base and certain other factors. Each scheme has a safeguard clause or an escape clause to protect the sensitive sectors in its economy.

A particular item is qualified for GSP benefits only if the following conditions are satisfied:

(1) The product must be included in the GSP list.

(2) The country exporting the item should be declared under the GSP as a beneficiary country.

(3) The value added requirements/process criteria must be complied with.

(4) The product must be imported into the GSP donor country from a GSP beneficiary country.

(5) The exporter must send to his buyer/importer a certificate of origin in the prescribed form duly filled in and duly signed by him, and then certified by a designated Government authority.

 

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Comments

 
Aamir Shaikh Says :
Thursday, March 16, 2017
Wht does GSP means can u plz elaborate and wht are the product list in GSP.
YOGITA PANDYA Says :
Thursday, July 13, 2017
I HAVE A CLIENT WHO DESIGNS SETS AND STAGES FOR WEDDINGS AND TELEVISION. I WOULD LIKE TO KNOW IF GST WOULD BE CHARGED IF PAID TO WORKERS AND IF YES WHAT WOULD BE THE RATE APPLIED?
 

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