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No.14/005/042/2005
July 28, 2005
Members of the Council
Dear Members,
Sub: GSP scheme of the European Union
We wish to inform you that the European Union has announced Generalized system of tariff preferences (GSP) under which tariff exemptions / concessions have been granted on import of certain commodities into EU from notified least developed / developing countries vide EC Regulation No 980/2005 dated June 27, 2005.
The new GSP scheme is for the period from Jan 1, 2006 to Dec 31, 2008.
The salient features of the new GSP scheme are briefly stated as under:
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The scheme provides preferential treatment to import of specified products from notified countries into
EU, through the following arrangements:
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India
continues to be one of the beneficiary countries in the EC Regulation.
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The earlier classification of products into sensitive and non-sensitive have been maintained in the new GSP scheme. A statement showing the categorization of products falling under Chapter 41, 42 and 43 is enclosed herewith for your information
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Under the general
arrangement, the tariff duties on ‘non-sensitive’ products continue to be totally suspended. In other words, there will be no import duty for items falling under ‘non-sensitive’ category. The items under ‘sensitive’ category will enjoy tariff preferences.
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Accordingly, certain types of leathers, leather goods and garments, footwear exported from India, being treated as ‘sensitive items’, will be allowed into EU at preferential tariff.
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The GSP preferential tariff is arrived at by reduction of flat rate of 3.5 per cent points from the MFN Tariff.
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The European Union MFN tariff details are as follows:
|
Chapter |
MFN Tariff |
Chapter 41
Raw hides and skins
(other than furskins) and leather |
Tariff ranges between 2% and 6.5% with a few items allowed
duty free import |
| Chapter 42
Articles of leather; saddlery and
harness;
travel goods, handbags and similar containers; articles of animal gut
(other than silk worm gut) |
Tariff ranges between 1.7% and 9.7% |
| Chapter 43
Furskins and artificial fur;
manufactures thereof |
Tariff ranges between 2.2% and 3.7% with a few items allowed duty free
import |
| Chapter 64
Footwear, gaiters and the like;
parts of such articles |
Tariff ranges between 3% and
17% |
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In case the preferential tariff so arrived is 1% or less (i.e. MFN tariff less GSP 3.5 percent points), then that duty shall be entirely suspended. In other words, duty will not be levied if the net duty payable under the GSP comes to less than 1%.
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Under the special incentive arrangement for sustainable development and good governance, duties on all items are totally suspended for imports from certain notified countries. However, India is not included in this category.
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Under the special arrangement for least developed
countries, the duties will be totally suspended for imports from LDCs into
EU. This provision is not applicable to India, being a developing country.
Member-exporters may kindly take note of the new EU GSP scheme that will come into force from Jan 1, 2006.
Thanking you,
Yours faithfully,
S Audiseshiah
Executive Director
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Statement
showing categorization of products under EU GSP
in respect of Chapters 41, 42, 43 & 64 |
| CN CODE |
DESCRIPTION |
Sensitivity
/ Non-sensitivity |
| Ex 4104 |
Tanned or crust hides and skins of bovine (including buffalo) or equine animals, without hair on, whether or not split, but not further prepared, excluding products of 4104 41 19 and 4104 49 19 |
Sensitive |
| Ex 4106 314106 32 |
Tanned
or crust hides and skins of other animals, without wool or hair on,
whether or not split, but not further prepared, excluding products of 4106
31 10 |
Non
Sensitive |
| 4107 |
Leather
further prepared after tanning or crusting, including parchment-dressed
leather, of bovine (including buffalo) or equine animals, without hair on,
whether or not split, other than leather of heading 4114 |
Sensitive |
| |
Leather
further prepared after tanning or crusting, including parchment-dressed
leather |
|
| 4112
00 00 |
Of
sheep or lamb, without wool on, whether or not split, other than leather
of 4114 |
Sensitive |
| 4113 10 00 |
Of
goats or kids, without wool on, whether or not split, other than leather
of 4114 |
Sensitive |
| 4113 20 00 |
Of
swine |
Non
Sensitive |
| 4113 30 00 |
Of
reptiles |
Non
Sensitive |
| 4113 90 00 |
Other |
Non
Sensitive |
| 4114 |
Chamois
(including combination chamois) leather; patent leather and patent
laminated leather; metallised leather |
Sensitive |
| 4115 10 00 |
Composition
leather with a basis of leather or leather fibre, in slabs, sheets or
strip, whether or not in rolls |
Sensitive |
| 4201 00 00 |
Saddlery
and harness for any animal (including traces, leads, knee pads, muzzles,
saddle cloths, saddle bags, dog coats and the like), of any material |
Non
Sensitive |
| 4202 |
Trunks,
suitcases, vanity-cases, executive-cases, brief-cases, school satchels,
spectacle cases, binocular cases, camera cases, musical instrument cases,
gun cases, holsters and similar containers, traveling-bags, insulated food
or beverage bags, toilet bags, rucksacks, handbags, shopping bags,
bottle-cases, jewellery boxes, power-boxes, cutlery cases and similar
containers, of leather or of composition leather, of sheeting of plastics,
of textile materials, of vulcanized fibre or of paperboard, or wholly or
mainly covered with such materials or with paper |
Sensitive |
| 4203 |
Articles
of apparel and clothing accessories, of leather or of composition
leather |
Sensitive |
| 4204 00 |
Articles
of leather, or of composition leather, of a kind used in machinery or
mechanical appliances or for other technical uses |
Non
Sensitive |
| 4205 00 00 |
Other
articles of leather or of composition leather |
Non
Sensitive |
| 4206 |
Articles
of gut (other than silkworm gut), of goldbeater’s skin, of bladders or
of tendons |
Non
Sensitive |
| Chapter
43 |
Fur-skins
and Artificial fur: manufacturers thereof |
Non
Sensitive |
| Chapter 64 |
Footwear,
Gaiters and the like; parts of such articles |
Sensitive |
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