News Article

Big Changes in EU Import Duties with New General System of Preferences

Laws & Regulations

BRUSSELS, Belgium (May 31) – The current General System of Preferences (GSP) expires on 31 December 2005. At the end of 2004, the Commission already made a proposal as to what the new GSP should look like. They then suggested to move the entry into force of the new GSP forward to 1 July instead […]

BRUSSELS, Belgium (May 31) – The current General System of Preferences (GSP) expires on 31 December 2005. At the end of 2004, the Commission already made a proposal as to what the new GSP should look like. They then suggested to move the entry into force of the new GSP forward to 1 July instead of 31 December. After the dramatic events in Asia, end of last year, the Commission proposed to advance that date to 1 April. That was meant as an additional declaration of support to the countries that were hit by the tsunami. However, the Council has put a spoke in the wheel. At a meeting of 16 March 2005, the EU-25 did not reach an agreement on the Commission’s proposal. But the new GSP will undoubtedly be promulgated some time this year and will have a big impact on the EU import duties for Asian countries. As for the bicycle import from Bangladesh; this will remain duty free. Bicycle import from Sri Lanka which is now subject to a preferential rate of 6.5% will also be completely exempted. Following the introduction of the new scheme import duties on bicycles made in China will go up from 10.5% to 15% and for bicycle parts and accessories from 1.2% to 4.7%. India and Indonesia will not graduate out of the system with the introduction of the new GSP. As a result their GSP tariffs will remain unchanged: 10.5% for bicycles, 4.5% for mopeds and motorcycles up to 250cc, 2.5% for motorcycles exceeding 250cc. Motorcycle parts and accessories are completely exempted. (AR)

Comment on this article