What is GSP Registration?
The Generalized System of Preferences (GSP) is a preferential tariff system extended by developed countries (also known as donor countries) to developing countries (also known as beneficiary countries). It allows eligible products to enter the markets of donor countries at reduced or zero duty rates.
To avail of these benefits, exporters must obtain a Certificate of Origin (Form A), which certifies that the goods originate from a beneficiary country like India.
Benefits of GSP Registration
- Duty-Free Entry: Eligible products can enter donor country markets with reduced or zero customs duty.
- Competitive Advantage: Lower landed cost makes your products more competitive against those from non-beneficiary countries.
- Market Expansion: Easier access to developed markets like the EU, Japan, and Australia.
- Increased Exports: Encourages higher export volumes due to price competitiveness.
Eligibility Criteria
To qualify for GSP benefits, the following conditions must be met:
- Originating Status: The product must be wholly obtained or sufficiently processed in the beneficiary country (India).
- Direct Consignment: Goods must be shipped directly from India to the donor country without entering the commerce of a third country.
- Documentary Evidence: A valid Certificate of Origin (Form A) must accompany the shipment.
Documents Required
- IEC Code: Importer-Exporter Code issued by DGFT.
- Commercial Invoice: Detailed invoice of the shipment.
- Packing List: Details of the packaging of goods.
- Bill of Lading/Airway Bill: Proof of shipment.
- Cost Sheet: Breakdown of costs to prove value addition (if applicable).
- Declaration: A declaration by the exporter regarding the origin of goods.
Registration Process
- Registration on CoO Portal: Register on the DGFT's Common Digital Platform for Certificate of Origin.
- Application Submission: Fill out the online application for the GSP Certificate (Form A) and upload required documents.
- Verification: The designated agency (e.g., Export Inspection Council) verifies the application and documents.
- Issuance: Upon successful verification, the digitally signed Certificate of Origin is issued.
