Commercial Information Circulars

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Ref : CR EIC 230/20/1

30 March 2004

Dear Sirs,

Commercial Information Circular No. 83/2004

European Union (EU)* :Amendment to the Generalised Scheme of Tariff Preferences

Further to Commercial Information Circular No. 172/2003 of 20 June 2003, the Council of the EU (the Council) has published a regulation in the Official Journal (OJ) of the European Union (EU) to extend the Generalised Scheme of Tariff Preferences (GSP) for one year to 31 December 2005. The European Commission has also published a regulation in the OJ of the EU to update the list of product sectors of those beneficiary economies which are eligible for the preferential arrangements under the GSP. Copies of the regulations are at Attachment I and II (pdf format) for reference.

DETAILS

2. Under the GSP, the EU accords tariff preferences to a wide coverage of agricultural and industrial products originating in a total of 179 economies. Such tariff preferences are granted to developing economies to encourage them to increase and diversify their exports. While Hong Kong has been graduated from the GSP since 1 May 1998, the mainland of China continues to be one of the beneficiaries.
    

3. Given the multilateral trade negotiations launched at the fourth ministerial conference of the World Trade Organisation in Doha in November 2001 are not yet over, the Council opined that it was premature to draw up guidelines for applying the GSP from 2005 to 2014. Therefore, the current scheme should be renewed for one year to 31 December 2005. Details are set out at Attachment I (pdf format).
    

4. The tariff preferences granted under the GSP may be removed in respect of all or certain products originating in a beneficiary economy if that economy, during three consecutive years, meets the economic development criteria for graduation. Conversely, a graduated beneficiary economy or its graduated products would be re-admitted to the GSP if that economy does not meet the economic development criteria for graduation during the following three consecutive years.
    

5. Based on the statistics for 1999 to 2001, the European Commission has compiled the list of beneficiary economies and their respective product sectors which are to be removed from or re-admitted to the GSP with effect from 1 January 2005. Details are set out in the Annexes of Attachment II (pdf format). Of note is that the tariff preferences for jewellery and precious metals originating in the mainland of China will be removed.

ENQUIRIES

6. For enquiries concerning the content of this circular, please contact the undersigned at telephone number 2398 5351.

Yours faithfully,

(Ricky CHENG)

for Director-General of Trade and Industry

* : The EU includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal, Spain, Sweden and the United Kingdom.