Currently Ukraine benefits from the EU Generalized Scheme of Preferences (GSP) which is a system of tariff preferences for imports of goods originating in less developed and developing countries.
As of 1 January 2014 a new Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 entered into force. Mentioned Regulation foresees lesser amount of eligible countries, additional reduction of import duties, increase in number of non-sensitive goods etc.
There are three possible types of GSP arrangements:
- General arrangement (GSP) – covers 6200 (66%) tariff lines which are divided into sensitive (3785) and non-sensitive (2415) categories. For non-sensitive goods a zero import duty rate is applied. For sensitive goods the average import duty rate is 3,5% less than under the MFN regime.
- Special incentive arrangement for sustainable development and good governance (GSP+) – covers 6700 tariff lines. The main difference from the general arrangement is the application of the zero import duty rates to the certain sensitive goods and removal of previously introduced exclusions.
- Everything But Arms (EBA) – covers more than 7000 tariff lines with zero import duty rates except arms and military goods. This arrangement is applied towards the countries which have been classified by the UN as least-developed countries.
Under the Annex II of the Regulation (EU) No 978/2012 of the European Parliament and of the Council of 25 October 2012 Ukraine is listed among countries which benefit from the general arrangement. Moreover, pursuant to the mentioned Regulation the GSP is no more applied to China, Russia, Kazakhstan, Brazil and others which provides Ukrainian exporters with additional advantages on the European market.
All appropriate tariff lines covered by the GSP are listed in the Annex V of the Regulation.
To benefit from the GSP general arrangement in Ukraine one must have the certificate of origin “Eur.1A” which can be obtained in territorial branches of the Ukrainian Chamber of Commerce and Industry.
The GSP arrangement will be terminated after the entry into force of the EU – Ukraine Deep and Comprehensive Free Trade Area which is scheduled on 1 January 2016.