The Generalised System of Preferences (GSP) allows originating products from a range of countries to be imported into the European Union (EU) at a reduced or zero rate of duty. For more information on how to determine whether a product is an originating one, read Notice 830 - Tariff Preference: New GSP rules of origin.
GSP+ is an extension to the GSP system - it includes developing countries which have proved their commitment to sustainable development and good governance. Most duty rates are 'zero' under this part of the scheme.
Under GSP, preferences are 'non-reciprocal'. This means that goods imported into the EU from a number of developing countries are liable to reduced or nil rates of duty. The GSP system does not apply to exports from the EU.
However, if you're exporting goods to a GSP country that are going to be processed there, and the finished products will then be imported into the EU under preference, your supplier may be able to count them as originating in that country under a procedure called donor country content.
Some GSP countries are grouped together so that goods can be processed in countries within the group and still be eligible for import into the EU under GSP preference.
The groups are:
the Association of South East Asian Nations of Brunei-Darussalam, Laos, Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam
the Central American Common Market countries of Costa Rica, Panama, Honduras, Guatemala, Nicaragua and El Salvador
the Andean Community of Bolivia, Colombia, Ecuador, Peru and Venezuela
the South Asian Association for Regional Co-operation countries of Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka
Read more about managing import preferences.