Generalised System of Preference (GSP) was implemented to support developing countries by giving them preferences in trade tariffs from developed countries. It is also defined as the non-contractual instrument by which developed countries extend tariff concession to goods originating in developing countries and an example of a Unilateral Trade Agreement.
The objective of GSP
Certificate of Origin is the certificate that declares that goods in the export shipment are manufactured or produced in a particular country, basically, it tells about the nationality of the export goods. There are two types of Certificate of Origin - Preferential Certificate of Origin & Non-Preferential Certificate of Origin (NP CoO) issued in India.
Certificate of origin issued under GSP system comes under preferential type certificate of origin and known as GSP Certificate of Origin or Form a certificate of origin.
Exporters having a Certificate of origin under GSP can get the tariff concession on their export goods exported in developed countries.
The Government of India has nominated various agencies to issue the certificate of origin through a Common Digital platform CoO Portal launched by DGFT.
The following countries are there who are giving tariff preferences to exporters of the developing countries having the certificate of Origin under GSP trade agreement:-
Customs of the above countries require Form A certificate of origin by exporters of beneficiary countries and certified by the authorized agencies.
The Government of India has launched various agencies to issue Certificate of Origin. To issue CoO under GSP following agencies have been nominated and available to accept the application online on the common portal to issue the Certificate.
Certificate of origin obtained under GSP (Preferential type of CoO) can be shown at the customs to get tariff concession in developed countries. The online system has been launched to obtain a COO in India.
The Government has launched one Common platform to obtain Certificates of origin. The platform would provide an electronic, paperless, contactless platform to issue the certificate by saving time and cost for exporters.
The application has to be done to the nominated agencies by doing an online application on - https://coo.dgft.gov.in/.
The CoO portal was launched for issuance of the GSP Certificate of Origin in September 2019. Since then various agencies have been added to the list of nominated agencies to get the Certificate of Origin under GSP.
Obtaining the GSP certificate of Origin through the common portal is a two-step procedure –
Prior Registration on CoO portal
Prior registration using Class 2 or Class 3 Digital Signature is mandatory to get a Certificate of Origin.
Online Application on CoO portal
The certificate would be issued after verification and approval by one of the nominated agencies through the portal only.