Importers – New GSP regional culmination agreement
HMRC have issued a new Customs Information Paper (CIP) relevant to importers.
The CIP specifically refers to the entry into force of new Generalised System of Preferences (GSP) regional cumulation arrangements for the Mercosur group of countries – Argentina, Brazil, Paraguay and Uruguay.
The regional culmination arrangement allows for materials, components or parts originating in one country in the group, in accordance with the GSP rules of origin, may be regarded as originating in another country in the group to which they are sent for further processing or for inclusion in a finished product.
The provisions of regional culmination therefore apply to the countries from 1 January 2011.
The GSP is a trade arrangement through which the EU provides preferential access to the EU market for certain countries in the form of reduced tariffs for their goods when entering the EU market.