Industrial plastic products Co., Ltd. benefited from the "generalized system of preferences"
Shandong industrial plastic products Co., Ltd. is a disposable plastic bag, which belongs to this small profit and thin industry. However, last year, it was convenient for the installation and protection of rubber fatigue testing machine, but its export earnings reached US $4.22 million, with a net profit of US $210000, becoming the pacesetter of Jinan's export earnings. Where is the trick? On March 16, Wang Hongyi, the general manager of the company, revealed to the, "this is because we have made full use of the 'GSP' in foreign trade and received the lowest tariff treatment. Last year, we received more than 70000 US dollars from the 'GSP'."
what is the "generalized system of preferences"? How can foreign trade enterprises benefit from the GSPThe generalized system of preferences (GSP) is the abbreviation of the generalized system of preferences (GSP) in English. It is a universal, non discriminatory and non reciprocal tariff reduction and exemption system that developed countries give to manufactured and semi manufactured products (including some primary products) exported by developing countries
at present, developed countries in international trade generally impose three tax rates on imported goods compared with foreign mines: the general tax rate adopted for non diplomatic countries is actually the highest tax rate; MFN tax rate, or reciprocal tax rate; The generalized system of preferences tax rate, or one-way preferential tax rate, is a tax rate that reduces or cancels tariffs on the basis of the most favored nation tax rate. At present, the tariffs on export products under the generalized system of preferences are about one-third lower than the most favored nation tax rate, which is the lowest tariff in international trade. Because it is non reciprocal, that is, developed countries should unilaterally give preferential tariff treatment to developing countries without requiring developing countries to give equal treatment. Therefore, making full use of the GSP can reduce the cost of export products and improve the competitiveness of products for enterprises in developing countries
Jinan import and export company has tasted the sweetness in this regard. Last October, the company negotiated with a Spanish customer to export willow weaving and other handicrafts. Spanish merchants were hard to accept the price of $9.40 per set, and repeatedly asked for price reduction, making it difficult to conclude a deal. At this time, the company showed the Battle Card of providing origin visas and allowing merchants to enjoy the generalized system of preferences. When the foreign businessman learned that he actually paid $9.17 per set, he was very happy. This total amount of $100000 accounted for 20.8%; Equipment with a travel of more than 1100mm means a smooth deal
according to the regulations, in order to receive GSP treatment, enterprises in beneficiary countries must provide a valid certificate of origin to the beneficiary countries to prove that they are indeed produced in developing countries and exported directly to developed countries. This certificate is usually called GSP certificate of origin, or gspforma certificate. The Chinese government authorizes the entry-exit inspection and quarantine institutions to issue unified certificates to the outside world, and all enterprises can apply for them at the local entry-exit inspection and Quarantine Bureau
for importers, the GSP certificate of origin is like a check. With it, they can pay less tariffs and have money. A few years ago, many export-oriented enterprises in Jinan did not understand the GSP system, but passively provided foreign investors with certificates of origin. Only enterprises that constantly accepted these challenges could control the initiative, and the part of the benefits obtained were taken by foreign investors. It has been nearly 10 years since Jinan entry exit inspection and Quarantine Bureau issued the GSP certificate of origin to the outside world, and the number of issued certificates has increased at a rate of 10% - 30% every year. In 2000, there were 3283 visas, involving more than 90 million US dollars, and more than 200 visa units. After China's accession to the WTO, the United States may also implement the generalized system of preferences to China. At that time, the visa volume of Jinan will increase by at least 30%. However, with the development of China's economy and the strengthening of the competitiveness of enterprises, in the near future, many developed countries may cancel the preferential treatment of GSP for China or some of our products. Therefore, we should strengthen the use of GSP now