What if commercial law no longer enjoys the GSP treatment of the Eurasian Economic Union

According to the notification of the Eurasian Economic Commission, the Eurasian Economic Union decided not to grant GSP tariff preference to China's export union products from October 12, that is, goods exported to the member countries of the Eurasian Economic Union will no longer enjoy GSP tariff preference. The customs will no longer issue GSP certificates of origin for goods exported to member countries of the Eurasian Economic Union. If the consignor of goods from a member state of the Eurasian Economic Union needs a certificate of origin, he may apply for the issuance of a non preferential certificate of origin.

It is understood that the GSP tariff preference is a universal, non discriminatory and non reciprocal tariff preference given by developed countries to developing countries for the export of finished and semi-finished products. It is a preferential tariff that is further reduced and even exempted on the basis of the most favoured nation tariff. "The purpose of the Eurasian Economic Union GSP tariff is to help developing countries exempt or reduce tariffs on products exported to the Eurasian Economic Union market. Since China no longer belongs to the 'low-income' and 'middle and low-income' economies recognized by the world bank standards, the Eurasian Economic Union has cancelled the original GSP treatment for China. In addition to China, there are more than 70 countries And regions no longer enjoy corresponding tariff treatment, but need to establish agreements to re-establish trade standards in other ways of cooperation. "Dai Zijun, member of Zhida cross border risk compliance committee, told reporters that the Eurasian Economic Union includes Russia, Belarus, Kazakhstan, Kyrgyzstan and other countries. The issuance of the notice means that if the export destination of the enterprise is the above countries and the export goods are within the scope of the list of goods enjoying the GSP tariff preference of the Eurasian Economic Union, the enterprise will no longer enjoy the original preference of exemption from 25% import tariff.

"The abolition of preferential tariffs means a higher tariff level. The adjustment of GSP tariffs will affect the categories of commodities such as fish and aquatic products, meat and poultry non-staple food, dairy products, vegetables, cash crops, food crops, wood, furniture, silk fabrics and decorations." Dai Zijun said that this will have an impact on the export of many industries in China, So as to reduce the price advantage of China's related products in the Eurasian Economic Union market and weaken the competitiveness. Enterprises need to check whether their goods are within the scope of the list. If they fall into the list, they should cost these goods and change the direction of market planning in time. In the long run, if the market resistance of the Eurasian Economic Union increases, it is necessary to re layout the production base and export market to adapt to the new tariff policy.

In recent years, with the steady development of China's economy and the gradual improvement of China's international trade status, more and more countries and regions have announced the "graduation" of China's GSP. For example, since 2015, the EU will no longer give GSP tariff preference to Chinese goods; Since April 2019, Japan has also stopped GSP preferences for Chinese goods. At the same time, China has also established bilateral free trade agreements with former GSP preference giving countries such as New Zealand, Switzerland and Australia.

After no longer enjoying the GSP tariff preference of the Eurasian Economic Union, the most favored nation tax rate of the Eurasian Economic Union will be resumed for China's relevant commodities. At that time, the consignor of goods imported into the member countries of the Eurasian Economic Union may apply for the issuance of a non preferential certificate of origin if he needs a certificate of origin. "These enterprises can be familiar with the declaration requirements of non preferential certificates of origin in advance, do a good job in explanation and communication with customers, and ensure the smooth transition of certificate types," Dai Zijun said.

At the same time, the relevant person in charge of the General Administration of Customs said that the majority of export enterprises should actively optimize the structure of export commodities, enhance the added value of export products, establish brand competitiveness and enhance their international competitiveness. When opening up new foreign markets, we should pay attention to RCEP free trade agreement, improve the added value of export products and create new competitive advantages. Consider exporting to countries that have signed various preferential trade agreements with China to enjoy preferential tariff policies. Qualified enterprises can invest and build factories overseas, make full use of the cost advantages and preferential tariff treatment of third countries, borrow ships to go to sea and expand exports.

Source: China trade news reporter Qian Yan

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