- a beneficiary of the standard GSP;
- whose imports into the EU are heavily concentrated in a few products; and
- with a low level of imports into the EU (its GSP-covered imports into the EU represent less than 6.5%in value of the EU’s total GSP-covered imports from all GSP beneficiaries)
- to maintain the ratification of these 27 conventions and to ensure their effective implementation;
- to accept without reservation reporting requirements and monitoring imposed by those conventions; and
- to accept and cooperate with the EU monitoring procedure.
There are currently eight (8) beneficiary countries of GSP+, namely, Armenia, Bolivia, Cape Verde, Kyrgyzstan, Mongolia, Pakistan, Philippines, and Sri Lanka.
How has the Philippines benefitted from GSP+?
Since the successful application of the Philippines to the GSP+ in 2014, the Philippines has enjoyed greater market access to the EU that led to a significant increase in exports. With GSP+, Philippine exports to the EU continue to enjoy double-digit growth rates.
GSP+ Utilization of PH 2014-2020
2014
2015
2016
2017
2018
2019
2020
Total GSP Eligible Exports (in billion Euros)
Total GSP Utilized (in billion Euros)
GSP+ Utilization Rate
Total PH Exports to EU (in billion Euros)
Export Growth Rate
For 2020, total exports to the EU amounted to EUR6.2 billion. In terms of eligible exports, EUR2.1 billion worth of PH exports are covered by GSP+, of which EUR1.6 billion availed of GSP+ preferences (or 26% of PH’s total exports). Likewise, GSP+ utilization grew by 3 percentage points from 72% in 2019 to an all-time high of 75% in 2020. The top GSP+ exports of the Philippines include: crude coconut oil, vacuum cleaners, prepared or preserved tunas, electro-thermic hair dressing apparatus, spectacle lenses, new pneumatic tires, prepared or preserved pineapples, fatty alcohols (industrial), parts suitable for use solely or principally with transmission and reception apparatus for radio-broadcasting or television, and activated carbon.
The top EU member state destinations of PH GSP exports are Netherlands (42.99%), Germany (19.08%), Italy (8.60%), France (8.19%), and Spain (6.94%).
This increase in exports has benefitted several communities including, but not limited to General Santos, Davao, Cebu, and economic zones located in cities such as Laguna, Rosario (Cavite), and Batangas, where most of the exporters that take advantage of GSP+ preferences are based
GSP+ also gives an impetus for foreign companies to invest in the Philippines. A number of companies have established their manufacturing operations in the Philippines in order to take advantage of GSP+ benefits, thereby contributing to employment generation and the developmental goals of the country. These operations cut across a range of industries including electronics, agriculture, processed foods, apparel, craft goods, travel goods, and home appliances.
As a developmental tool, GSP+ helps exporters by making it easier for them to export their products to the European Union. This is done in the form of reduced tariffs for their goods when entering the EU market. Through the additional export revenue generated, GSP+ fosters growth in income, supports employment creation, and ultimately, contributes to countryside development and inclusive economic growth.
EU-Registered Exporter System
The Registered Exporter system (the REX system) is envisioned to replace the current system of origin certification that will be applied in all unilateral, bilateral, and multilateral agreements the EU has with third countries. It is a self-certification system that will enable economic operators to issue their own statement on origin.
To be able to issue a statement on origin, an economic operator will have to be registered in a database by his competent authorities. This simplifies export formalities as the REX eliminates the need to apply for a certificate of origin. Application to be a registered exporter is a one-off formality. The exporter will then be issued a REX number, which could be used in all preferential arrangements where REX is applied.
For more information, please visit the following links:
[Clickable link]: Bureau of Customs Memorandum Order on EU REX Application Guidelines:
UNITED STATES GENERALIZED SYSTEM OF PREFERENCE (US GSP)
On 23 March 2018, US President Donald J. Trump signed the Omnibus Spending Bill which include the reauthorization/renewal of the US GSP program through 31 December 2020. The renewal includes a mechanism for refund of tariffs paid from 1 January 2018 through the reinstatement date of the program.
The US GSP is designed to promote economic growth and development in the developing world through preferential, duty-free entry to the US market for products coming from 122 designated beneficiary countries (BDCs) and territories, including the Philippines and many of the world’s poorest countries. The trade benefits, however, are tied to conditions, including intellectual property rights protection, and upholding of workers’ rights and protection against child labor. The GSP program was instituted on 2 January 1976 and authorized under the US Trade Act of 1974 for 10 years. It has been renewed periodically since then by the US Congress.
The program covers a total 5,057 products or tariff lines or roughly 47.7% of the 10,600 total US tariff lines: 3,500 of which are open for all BDCs while an additional 1,500 products are given to the least-developed beneficiary countries. Effective 1 July 2017, a total of 23 travel goods articles were added to the program.
The GSP program includes most dutiable manufactures and semi-manufactures, and selected agricultural, fishery, and primary industrial products. Certain articles are prohibited by law from receiving GSP treatment. These include most textiles, watches, footwear, handbags, luggage, flat goods, work gloves, and other leather apparel. In addition, any other articles determined to be import-sensitive cannot be made eligible for GSP such as certain products of steel, glass, and electronics.
Philippine Utilization of US GSP
2016-2020 US GSP (Data from USITC Dataweb)
YEAR
TOTAL PH EXPORTS TO US (USD Million)
PH EXPORTS TO US UNDER GSP
(USD Million)
US GSP
UTILIZATION RATE OF PH
TOTAL ELIGIBLE PRODUCTS
GSP CLAIMED
