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        32 countries cancel GSP treatment for China

        瀏覽量:2684Author:互聯(lián)網(wǎng)Source:web

        Starting from December 1, China’s exports to 32 countries including EU member states, the United Kingdom, Canada, Turkey, Ukraine, and Liechtenstein will no longer enjoy the preferential treatment of the GSP tariffs of these countries, and the Chinese customs will no longer treat these countries. The commodity is issued with a GSP certificate of origin.




        This adjustment of tariff arrangements in international trade has aroused widespread concern in domestic public opinion. Some views raise the question, are these countries no longer recognizing China as a developing country? Or did these countries take trade measures against China? What impact will it have on China's exports?




        How did 32 countries cancel the GSP treatment for China? What is the impact on my country's exports? How do companies respond?




        This announcement means that China's exports to the aforementioned 32 countries no longer enjoy the preferential treatment of GSP tariffs from these countries.




        What is the Generalized System of Preferences?




        The Generalized System of Preferences, referred to as the Generalized System of Preferences, is a universal, non-discriminatory and non-reciprocal tariff preference granted by developed countries (beneficial countries) to developing countries and regions (beneficiary countries) for export of manufactured and semi-manufactured products. system. Designed to help developing countries expand exports and accelerate their national economic growth. For related products imported from beneficiary countries, tariff concessions based on the most-favored-nation tax rate, or even "zero-tariff" access treatment, will be granted.




        What is going on with China’s GSP tariff treatment no longer being granted?




        With the rapid development of China's economy and the continuous improvement of people's living standards, according to World Bank standards, China is no longer a low-income or low-middle-income economy. To this end, the European Union and many other GSP countries have successively announced the cancellation of China's GSP treatment in recent years. The General Administration of Customs of the People’s Republic of China interpreted the cancellation of China’s Generalized System of Preferences (GSP) tariff preferences by 32 countries. It is that “as China’s economic strength increases and the competitiveness of its export products increases, China has gradually benefited from the generalized system of preferences of advanced economies. Graduate."




        From 2012 to 2019, Ukraine, Canada, Switzerland, Liechtenstein, the European Union, Turkey, Japan, etc. have successively cancelled the preferential treatment of tariffs granted to my country's exports of the Generalized System of Preferences. In 2021, the Eurasian Economic Union announced the abolition of preferential tariff treatment for my country's Generalized System of Preferences.




        At present, what other countries grant my country's GSP treatment?




        At present, Norway, New Zealand, and Australia still have three countries in the world granting China's export commodities GSP treatment.




        How did 32 countries cancel the GSP treatment for China? What is the impact on my country's exports? How do companies respond?




        So what is the impact of the cancellation of GSP tariff preferences on China's exports?




        The normal tariffs of European and American countries remain between 2-3%. Even if the GSP is cancelled and restored to the normal tariff levels of these countries, the impact on Chinese products will not be significant. One of the most convincing examples is that after the United States imposed high tariffs on Chinese goods on a large scale, the trade volume between China and the United States has not been affected, but has increased substantially.




        Earlier, some foreign trade professionals stated to the media that the cancellation of the GSP treatment granted to my country by 32 countries will temporarily make some export companies lose tariff preferences and bring certain pressure. But generally speaking, this impact is limited: as the competitiveness of Chinese-made products is getting stronger and stronger, it is difficult for a simple tariff policy to affect the overall situation of international trade of Chinese products, so it will not affect the long-term future of Chinese export enterprises. Fight for greater market opportunities.




        How should export companies respond?




        The General Administration of Customs of China recommends that for goods exported to advanced economies that no longer grant China inclusive treatment, companies can apply for non-preferential certificates of origin to apply the most-favored-nation tax rate.




        It is recommended to start from the following two aspects to deal with it:




        One is to communicate and explain to foreign customers as soon as possible to avoid inconvenience caused by different types of certificates of origin.




        The second is to make full use of the achievements of my country's free trade zone construction. Exploit emerging markets, optimize the structure of export markets, increase the utilization rate of free trade agreements, and create new competitive advantages. Export products to countries and regions that have signed and implement free trade agreements with my country, and enjoy tariff reduction or exemption, and even zero-tariff market access treatment.


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