Irish Revenue Publishes Changes To GSP Regulations

by Amanda Banks, for LawAndTax-News.com, London

21 August 2008

The Irish Revenue Commission this week unveiled details of the new Generalised System of Preferences (GSP) Regulations set to come into force when the current GSP rules expire on 31st December, 2008.

Generalised System of Preferences (GSP) regimes aim to encourage the exports of developing countries by allowing their products preferential access to the markets of developed countries.

Although donor countries are under no obligation to give preferences, almost all developed countries operate such schemes; however, the schemes they offer vary significantly.

To ensure continuation of the regime in Ireland, a new GSP Regulation, 732/2008, was adopted on 22nd July 2008 to cover the 3 years from 2009 to 2011.

The main provisions are as follows:

• The existing GSP Rules of Origin for products will continue for the present and no changes are likely before July 2009.
• Duty reductions remain the same and there is no change to the list of sensitive and non-sensitive products.
• Myanmar and Belarus continue to be suspended.
• When a country’s performance on the EU market over 3 years exceeds or falls below a set threshold a “graduation mechanism” will trigger either a suspension or a re-establishment of preferences. As a result of calculations based on trade data for 2004 to 2006 GSP preferences will be re-established for six countries and suspended for one.

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