.::. BAR Chronicle .::. A monthly publication of the Bureau of Agricultural Research

Vol. 4 No. 5
April 1-30, 2003
EU tariff preferences benefit RP
by Carmela B. Brion

Some Philippine exports to Europe can now enjoy reduced or zero tariff rates as the European Union (EU) is now enforcing the New Generalised Scheme of Tariff Preference (GSP) for 2002 to 2004.

GSP is a system of granting tariff preferences to developing countries like the Philippines. Tariff preferences means duty-free entry of an export item to EU, or a tariff reduction on the exports - provided that certain conditions like the origin of the product are fully satisfied by the exporter. Fresh pineapples exported to Europe are entitled to a 3.5% reduction in tariff rates, originally pegged at 5.8% down to 2.3%.

In a seminar held at the Shangri La Makati, GSP Desk Officer Ivano Casella said that the Philippines has an underutilized GSP in 2001. Of the total agricultural, industrial, and textile exports €1.4 billion worth of Philippine exports are eligible for GSP, but only € 0.5 billion worth of goods were exported.

Mr. Casella recommended an intensified compliance to the rules of origin - the more value added in the product, the more likely that the Philippines will enjoy tariff cuts. Promoting industrial cooperation and intensifying the awareness campaign for GSP among the local exporters were also emphasized.

The EU - GSP desk officers asked assistance from government agencies like the Bureau of Agricultural Research (BAR) in disseminating the advantages of GSP to the Filipino exporters.
Exporters who want to know the tariff cut for their exports can log on to EU's database at http://europa.eu.int/comm/taxation_customs/dds/en/home.htm This website contains various information on GSP rate for a product in a country.