EU Preferential Origin Regime
GSP standard — Generalised Scheme of Preferences — duty pathway, required document, worked example
How it works
Partial duty reduction (~3.5pp typical) on covered "non-sensitive" products for developing-country exporters. India has graduated out of GSP for textiles (chapters 50-63), copper, plastics, organic chemicals — verify TARIC for the specific HS line.
Required document
To claim under GSP standard — Generalised Scheme of Preferences, the importer must present: REX statement on origin. Without the document, the EU customs broker applies the standard MFN rate — no exception.
Origin eligibility
Eligible origins under this regime include: India, ID, KE, NG. Verify TARIC for additional countries; the EU's GSP/EBA/GSP+ list is reviewed periodically.
Worked example: €50,000 customs value
Imagine you are importing €50,000 of apparel from India into the EU. Without GSP_STANDARD (no document presented): MFN duty rate 12.0% = €6,000. With GSP_STANDARD (valid REX): preferential rate 7.4% = €3,700. Saving: €2,300.
| Scenario | Duty rate | Duty amount |
|---|---|---|
| Without GSP_STANDARD (MFN) | 12.0% | €6,000 |
| With GSP_STANDARD (preferential) | 7.4% | €3,700 |
| Saving | — | €2,300 |
No document = no preferential rate
A common mistake: importers assume their origin is enough. The EU customs broker needs the actual origin document on file before clearance. If your supplier hasn't set up REX registration or won't issue EUR.1, you pay full MFN — and the duty is non-recoverable. Confirm document availability before signing your first PO.
Trade defence overrides
Preferential origin reduces or eliminates the MFN duty, but does NOT waive anti-dumping or countervailing duties. A Türkiye cold-rolled steel shipment cleared under A.TR still pays the 23.3% AD measure on top of 0% MFN. Verify TARIC for active trade defence on your specific HS line.
Build your full plan with this regime applied
Six questions, all four calculators (sourcing, routing, customs, warehouse), full landed cost — with the preferential pathway already claimed. Free.
Build my plan with preferential origin claimed →