The generalized system of preferences or GPS is a device that allows the import into the European Union of goods originating in developing countries at a reduced or zero rate.

In addition, the Commission proposes to extend the system. It was due to change in 2024. As established for 10 years, the next one was scheduled for 2024-2034. Discussions on the next round are blocked. Therefore, the Commission proposes to extend it until 2027 instead of 2034, which would bring us to a period of 2024-2027.

The GPS has three components, the general scheme, the special incentive scheme and the special scheme for least developed countries.

The general scheme

It is granted to all goods listed in Annex V to basic Regulation No 978/2012 originating in the beneficiary countries, except for certain product/country pairs.

The applicable customs duty depends on the sensitive or non-sensitive nature of the product, according to the list given in the legal basic regulation cited above.

Only non-sensitive products benefit from total exemption from customs duties with the exception of agricultural elements, the others from a reduced rate, provided they comply with the rules related to the agreement.

Sensitive products (Chapters 1 to 49 and 64 to 97, the scheme provides for a reduction in customs duties of 3.5%) on the full duty rate (TEC) and for sensitive products of Chapters 50 to 63 (textile products) the customs duty is reduced by 20%.

The special incentive scheme

It is a regime for sustainable development and good governance, called «GPS+» which is granted to countries that suffer from insufficient integration into world trade and a lack of diversity in their exports, Note: they are under surveillance for 3 years.

Special arrangements for the least developed countries

Irrespective of the general system and its exclusions, all goods of Chapters 01 to 97 (except arms) originating in the least developed countries (LDCs) are fully exempt from customs duties.

In conclusion, the current GPS program was set to expire on December 31, 2023.It should therefore be postponed until 2027. We await the return of the European Parliament and the Council. To be continued…