GSP Registration Online

The full form of GSP is the Generalized System of Preferences. It’s a preferential tariff system under which certain developed countries (called donor countries) provide reduced or zero duties on eligible products imported from developing countries (beneficiary countries).

The primary goal of GSP is to promote economic growth and development in beneficiary countries by giving their exports a competitive advantage. It’s an essential tool in international trade, facilitating smoother global commerce.

Objectives of GSP

The main objective of GSP is to foster economic growth and industrialization in developing countries. The key benefits include:

• Trade Facilitation: Simplifies trade by reducing customs duties.
• Poverty Reduction: Supports industries and creates employment in developing nations.
• Diversification of Exports: Encourages beneficiary countries to export a wider range of products.
• Integration into the Global Economy: Helps developing countries better integrate into the international trading system.

How GSP Benefits Indian Exporters

For Indian exporters, GSP means your products can enter specific developed markets at a lower cost, sometimes even duty-free. This directly translates to:

• Increased Competitiveness: Your products become cheaper for foreign buyers compared to those from non-GSP countries.
• Higher Profit Margins: Reduced tariffs mean you either capture more profit or pass savings to buyers to boost sales.
• Market Expansion: Lower entry barriers make it easier to penetrate new markets where GSP benefits are available.

Rules of Origin for Qualifying GSP

To qualify for GSP benefits, goods must primarily meet specific “Rules of Origin.” These rules ensure that only products truly originating from the beneficiary country receive preferential treatment, preventing third-country goods from simply transiting through a GSP beneficiary.

Generally, products must be:

• Wholly Obtained: Entirely produced or grown in the beneficiary country (e.g., agricultural products, minerals).
• Substantially Transformed: Manufactured in the beneficiary country using non-originating materials, but undergoing processing that changes their tariff classification or adds value (typically 30-50% local value addition, though this varies by donor country and product).

Other Rules of GSP

Beyond the Rules of Origin, other conditions apply to GSP:

• Direct Consignment: Goods must be shipped directly from the beneficiary country to the donor country.
• Notification Requirements: Exporters often need to be registered with their local authorities to issue GSP Certificates.
• Product Specificity: Not all products are covered under GSP. Each donor country specifies which GSP products are eligible.
• Donor Country Programs: Each donor country maintains its own GSP program with specific lists of beneficiaries, products, and rules.

The GSP Certificate of Origin is an official trade document that certifies that goods exported from one country are eligible for preferential tariff benefits under the Generalized System of Preferences (GSP).

This system allows certain developing countries, like India, to export goods to developed countries at reduced or zero customs duties.

Why It Matters

• Access to Lower Tariff Rates: It enables exporters to access reduced import duties in countries offering GSP benefits, increasing price competitiveness in international markets.
• Boosts Export Volume: By lowering trade barriers, it encourages higher export volumes and opens new global market opportunities for Indian businesses.
• Enhances Profit Margins: With reduced duty costs, exporters can either pass savings to buyers or improve their profit margins.
• Mandatory for Duty-Free Claims: Without this certificate, the importer cannot claim GSP benefits, and goods may be taxed at standard rates.
• Promotes Trade Relationships: It strengthens bilateral trade ties between developing and developed nations by facilitating easier market entry.

How to Download a GSP Certificate Online?

To get a certificate online:

• Register with DGFT and obtain your IEC (Importer Exporter Code).
• Submit product details to the designated export promotion council.
• Apply for the GSP Certificate of Origin through the online portal.
• Upload supporting documents such as an invoice, a packing list, and a declaration.
• Receive the digitally signed GSP certificate once approved.

How to Track GSP Certificate Application Status?

To track application status:

• Visit the DGFT or the export council’s portal used for submission.
• Log in with your credentials and go to the Application Status section.
• Enter your application number or reference ID.
• View real-time updates, including approval, processing, or additional document requests.
• For delays or clarification, contact the respective issuing authority directly.

India has historically been a significant beneficiary of the Generalized System of Preferences. For many years, Indian exporters enjoyed substantial duty concessions, particularly in the US and EU markets.

Past: India was a major beneficiary under the US GSP program until May 2019, when the US terminated India’s GSP status. This meant that many Indian products that previously entered the US duty-free or at reduced rates became subject to Most Favored Nation (MFN) tariffs. However, India continues to be a GSP beneficiary for other donor countries like the EU, Norway, Switzerland, Japan, etc., for many GSP products.

Present: While the US GSP program is a significant loss, Indian exporters can still leverage GSP benefits in other major markets. Given these complexities, exporters must verify the current GSP eligibility for their products in each target market.

Consulting with a trade specialist can help you navigate these changes and maximize your benefits.

The list of GSP-covered products varies by donor country, but they often fall into several key categories, including:

To facilitate a smooth GSP registration and application for your GSP certificate, ensure you have the following documents ready:

• Exporter’s IEC (Importer-Exporter Code) Copy: Mandatory for all exporters in India.
• Company Registration Proof: Certificate of Incorporation/Partnership Deed/Proprietorship firm registration.
• GST Registration Certificate: Copy of your GST registration.
• Banker’s Certificate: For verifying your bank details.
• Manufacturing Process Flowchart/Description: Explaining how the product is made, particularly if it involves imported raw materials, to prove origin rules.
• Raw Material Purchase Invoices: Invoices for materials used in manufacturing, distinguishing between domestic and imported inputs.
• Export Invoice and Packing List: Details of the specific shipment for which the GSP certificate is required.
• Bill of Lading / Air Waybill: Proof of shipment.
• Declaration of Origin: A formal declaration by the exporter stating that the goods comply with the GSP Rules of Origin.
• Proof of Payment of Fee: Receipt for the application fee.

Obtaining a GSP Certificate of Origin (Form A) in India is a systematic process, primarily managed through the online platform of the Directorate General of Foreign Trade (DGFT) and authorized agencies. Here’s a simplified breakdown:

Step 1: Prior Registration on CoO Portal

Before applying for any GSP Certificate, the exporter must first register their profile on the Common Digital Platform for Issuance of Certificate of Origin (CoO Portal) maintained by the DGFT. This is a one-time registration process.

You will need to upload the necessary business documents and get your profile approved by an authorized agency. This sets the foundation for your GSP registration.

Step 2: Online Application Submission

Once registered, you can log in to the CoO Portal and initiate a new application for a GSP Certificate (Form A). You will need to fill in details about:

• The exporter and consignee.
• The goods being exported (description, HS Code, quantity, value).
• The importing country.
• Evidence that the goods meet the GSP Rules of Origin (e.g., details of raw materials, manufacturing process, value addition).
• Select the Issuing Agency (e.g., Export Inspection Council (EIC), various Chambers of Commerce).

Step 3: Verification and Issuance

After submitting the online application, the selected Issuing Agency will review your application and the supporting documents. They will verify that the goods meet the necessary Rules of Origin and other GSP requirements.

If everything is in order, the agency will digitally sign and issue the GSP Certificate of Origin (Form A). You can then download and print the certificate for submission with your export documents.

The GSP registration and certificate issuance process involves certain fees. While these can vary slightly based on the issuing authority, here’s a general breakdown:

While both GSP (Generalized System of Preferences) and BIS (Bureau of Indian Standards) are related to trade and product standards, they serve distinctly different purposes:

In essence, GSP affects how much tariff an importer pays, while BIS affects whether a product can be sold in India due to its quality.