Customs in context

Gavin McFarlane of Dechert and London Guildhall University

The generalised system of preferences

The generalised system of preferences (GSP) has given rise to more friction between the import industry and the various customs authorities in the member states than any other single topic in the EU. At the same time it is probably the most common basis for fraud prosecutions in the commercial customs field. The system was introduced as an attempt by the world’s advanced economies to assist exporters in the Least Developed Countries (LDCs) as designated by the World Trade Organisation (WTO). However in the last decade or so the system has carried major risk for importers. The fundamental principle was that preferential (in the majority of cases nil) rates of duty would apply to specified imports of goods from the LDCs that were produced there.