What does gsp

However, with periodic reviews of the programme, India has been on crossfire due to its question whether it meets the eligibility criteria that requires a GSP beneficiary country to assure the U. India has to continuously be at the forefront of the GSP programme to export its products since the majority of the economy is dependent on exports. Since WTO regulates to protect all its members equally from preferential treatment. The answer here is that if the U. However, there is still hope.

To diminish the suffering of losses, the Government could consider a refund of taxes for goods not under GST. Assisting with the protection of jobs and providing input credit when it is not available, together with reducing the taxes temporarily would help the sectors sustain themselves. Your email address will not be published. What is the meaning of GSP? What is GSP — the Programme? What does it do? Computing » Networking -- and more Community » Educational. Miscellaneous » Months Abbreviations.

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Forgot your password? Retrieve it. Abbreviation » Term. Term » Abbreviation. Product coverage and the type of preferential treatment offered varies widely. In the WTO, the developing country status of members is generally based on self-determination. For GSP, however, each preference-granting country establishes particular criteria and conditions for defining and identifying developing country beneficiaries. Consequently, the list of beneficiaries and exceptions may vary greatly among countries.

If political or economic changes have taken place in a beneficiary country, it might be excluded from GSP programs in some countries but not in others. Some countries, including the United States, also reserve the right to exclude countries if they have entered into another kind of commercial arrangement e. GSP-granting countries may also have incentive-based programs that provide enhanced benefits for beneficiary countries that meet certain additional criteria.

In , for example, the EU implemented a regulation that grants additional GSP benefits to countries that have demonstrated their commitment to sustainable development and internationally recognized worker rights. Each preference-granting nation also has safeguards in place to ensure that any significant increases in imports of a certain product do not adversely affect the receiving country's domestic market.

Generally, these restrictions take the form of quantitative limits on goods entering under GSP. Under Japan's system, for example, imports of certain products under the preference are limited by quantity or value whichever is applicable on a first-come, first-served basis, administered monthly or daily, if indicated. For other products, import ceilings and maximum country amounts are set by prior allotment.

Each GSP benefactor also has criteria for graduation—the point at which beneficiaries no longer qualify for benefits because they have reached a certain level of development. Most preference-granting countries require mandatory graduation based on a certain level of income per capita based on World Bank calculations.

Some programs, such as the EU's, also specifically provide for graduation of certain GSP recipients with respect to specific product sectors. A description of three other countries' GSP programs follows.

In the current EU scheme, developing countries are automatically granted GSP status by the EU if they are classified as having an income level below "upper middle income" by the World Bank, and do not benefit from another arrangement e. On January 1, , the EU implemented additional substantial changes to its Generalised Scheme of Preferences EU GSP program that it stated were intended to 1 better focus on countries in need; 2 further promote core principles of sustainable development and good governance; and 3 enhance stability and predictability.

To add a measure of stability to the program, the EU extended GSP benefits for 10 years, and provided transition periods of at least one year for those countries that will lose EU GSP eligibility.

It "showed that the EU's current GSP is on track delivering its objectives" of bringing "clear economic benefits to developing countries, making it relevant to the development needs of developing countries," and "focusing preferences on countries most in need and has contributed to their sustainable development. Since , as part of a long-term overhaul of the EU's relationship of its trade arrangements with developing countries, including its GSP beneficiaries, negotiations have been ongoing to establish reciprocal, WTO-compliant "Economic Partnership Agreements" EPAs with developing country trading partners in the African, Caribbean, and Pacific regions.

Canada's General Preferential Tariff GPT , first implemented in , provides duty-free or reduced tariff rates for designated developing country beneficiaries. The GPT program expires, and is reviewed and amended on a year cycle. Canada's Economic Action Plan for announced a comprehensive review of the GPT in advance of its expiration on June 30, , due to "significant shifts in the income levels and trade competitiveness of certain developing countries" since , and to ensure that the GPT is "aligned with Canada's development policy objectives.

Japan's GSP program, first implemented in , provides preferential tariff treatment to developing countries and five territories, and is currently authorized through March 31, Most industrial products are duty-free to GSP beneficiaries, but tariff reductions are provided on some import-sensitive items. Beneficiaries may also lose GSP benefits for certain products if, for the past three years, regarding Japanese exports of that product: 1 the average value of Japan's imports of the product originating from the beneficiary for the past three years exceeds 1.

The law prohibits with certain exceptions the President from extending GSP treatment to certain countries, as follows: The President has the authority to waive certain mandatory criteria if he determines that GSP designation of any country is in the national economic interest of the United States and reports this determination to Congress.

The President is also directed to consider certain discretionary criteria, or "factors affecting country designation":. The law further authorizes the President, based on the required and discretionary factors mentioned above, to withdraw, suspend, or limit GSP treatment for any beneficiary developing country at any time see Table B-1 for a list of currently eligible GSP beneficiaries.

Figure 1. Top 10 U. GSP Beneficiaries, The action ended a year suspension of Burma's GSP benefits due to worker rights violations. The President may terminate, suspend, or limit the GSP status of a BDC if he determines that a country is determined to be sufficiently competitive or developed.

If a country becomes part of an association of countries specifically excluded from GSP, the country is also mandatorily withdrawn from GSP. Bulgaria and Romania were the last countries to lose GSP eligibility for this reason, effective when they became EU member states as of January 1, Specific language to this effect appears in FTA implementing legislation. The President may also suspend, terminate, withdraw, or limit a country's GSP status if he determines that a country is not complying with one or more of the GSP statute's eligibility requirements.

The President must advise Congress prior to the designation of any country as a GSP beneficiary, and at least 60 days before he designates any country as a least-developed beneficiary country. Additional GSP reporting requirements include an annual report to Congress on the status of internationally recognized worker rights within each BDC, including findings of the Secretary of Labor with respect to the beneficiary country's implementation of its international commitments to eliminate the worst forms of child labor.

The last time that Congress amended the list of import-sensitive products was in Section of P. Eligible goods under the U. GSP program must meet certain rules of origin ROO requirements in order to qualify for duty-free treatment.

First, duty-free entry is only allowed if the article is imported directly from the beneficiary country into the United States without entering the commerce of a third country. More than 3, products 78 are currently eligible for duty-free treatment, and about 1, additional products originating in LDBDCs may receive similar preferential treatment. Table 1 provides leading products imported under GSP from all countries in , including the Harmonized Tariff Schedule HTS subheading and description, along with the tariff that would have been assessed if the product had been imported under NTR tariff rates.

Figure 2 shows the Top 10 U. GSP imports in as a proportion of U. Figure 2. GSP Imports, Table 1. Leading U. Nonalcoholic beverages, not otherwise indicated, not including fruit or vegetable juices of heading Seamless gloves of vulcanized rubber other than hard rubber, other than surgical or medical gloves. Other food preparations not otherwise specified or indicated, including preparations for the manufacture of beverages, non-dairy coffee whiteners, herbal teas and flavored honey.

Aluminum alloy, plates, sheets, or strip, with thickness over 0. Precious metal other than silver articles of jewelry and parts thereof, whether or not plated or clad with precious metal, not otherwise specified or indicated. New pneumatic radial tires, of rubber, of a kind used on motor cars including station wagons and racing cars.

The TPSC's GSP Subcommittee reviews and revises the lists of eligible products annually, generally on the basis of petitions received from beneficiary countries or interested parties requesting that additional products be reviewed i. Interested parties are also given the opportunity for public comment and hearings are held. Results of the Annual Product Review will probably be announced in late October or early November The GSP Subcommittee also annually reviews issues regarding BDCs' and LDBDCs' observance of country practices such as worker rights or IPR protection ; investigates petitions to add or remove items from the list of eligible products; and considers which products should be removed on the basis that they are "sufficiently competitive," or are "import sensitive" relative to U.

Waiver petitions, if granted, are country-specific. Any modifications to product lists usually take effect on July 1 of the calendar year after the next annual review is launched, but may also be announced and become effective at other times of the year.

At the completion of an annual review, the results are announced by proclamation. In the context of a GSP annual review, beneficiaries or other interested parties may request that certain products be added to the list of eligible products for GSP. If a beneficiary requests that a product be provided GSP status, and the request is approved, the product becomes GSP-eligible for all GSP beneficiaries or, in some instances, for least-developed beneficiaries only. For example, in the context of the product review, petitions were received for nine products to become GSP-eligible, including certain transmission V-belts Harmonized Tariff Schedule HTS The list of products eligible for duty-free treatment when imported from GSP beneficiaries can be found here.

GSP supports U. Moving GSP imports from the docks to U. GSP also boosts American competitiveness by reducing costs of imported inputs used by U.