Suspension of EU GSP Benefits for Articles of leather, fur skins and artificial fur W.E.F. June 30, 2022
July 13, 2022
Members of the Council
Sub : Suspension of EU GSP Benefits for Articles of leather, fur skins and artificial fur W.E.F. June 30, 2022
You are aware that under European Union Generalised System of Preferences (GSP), most of the leather products exported from India are getting 0% duty while some products are getting concessional duty.
We have received a communication from the Department of Commerce, Ministry of Commerce and Industry, Government of India informing that the European Union (EU) has suspended the GSP Benefits for certain products including Articles of leather (Chapter 42), fur skins and artificial fur (Chapter 43) exported from India with effect from June 30, 2022.
The EU Commission regulation No. 2022/1039 dated June 29, 2022 issued in this regard is enclosed herewith . The GSP benefits have been suspended for India as per the EU GSP law which states that the GSP tariff preferences shall be suspended, in respect of products of a GSP section originating in a GSP beneficiary country, when the average value of Union imports of such products over three consecutive years from that GSP beneficiary country exceeds the threshold of 17.5%. The thresholds shall be calculated as a percentage of the total value of Union imports of the same products from all GSP beneficiary countries.
On account of the above regulation, the MFN (i.e normal / Conventional) duty will now apply for Articles of leather (Chapter 42), fur skins and artificial fur (Chapter 43) exported from India to EU. A table showing GSP and Normal (MFN) duties is enclosed herewith.
CLE has taken-up this issue and has requested continuation of GSP benefits to India in the virtual meeting convened by Department of Commerce on July 11, 2022 and is also submitting a detailed representation in this regard.
Members may please note the above.
Thanks and regards