Norway grants GSP to 90 countries around the world which includes developing, least develop countries and vulnerable countries. Lao PDR is one of LDCs that received GSP from Norway particularly for the main export products such as industries products (mostly garments) and wood products. (Click here for more detail)
Generalized System of Preferences of Norway includes three types as follows:
1. GSP for Least Develop Countries: Norway provided 0 % of import tax and unlimited of quota free for all goods from LDCs which has low national revenue to about 35 nations and Lao PDR is one of them that can obtain GSP.
2. Ordinary GSP: grants to Developing Countries for industry goods under chapter 25 - 97 (except textile under chapter 61 - 63) will get 0% of import tariff rate. For agricultural products will obtain tariff reduction from 10% to 100 % from MFN rate.
3. Special Intensive Arrangement or GSP+ is the preference scheme that is extended to Vulnerable Counties by obtaining better benefit than normal GSP. Textile products under chapter 61-63 will benefit from this GSP+ system and agricultural products will obtain tariff reduction from 50% to 100% from MFN rate.
Rules of Origin: ROO
Products that need to be excluded from import duty under the Japan GSP Scheme must follow ROO requirements as follows:
· Wholly obtained or produced: WO, which qualifies for origin criteria automatically, basically these goods are agricultural, agricultural processing products and mineral etc.
· In case of import raw material, products have to gone through Substantial Transformation which explain below:
- Products have to gone through some production process and change in tariff heading (CTH). Example: Raw material import from Thailand that have HS code 5001 to produce textile products that have HS code 6110 this product is change in Tariff heading which is qualify for origin criteria and can obtain GSP from Norway
- Maximum permitted content of non-originating materials that will explain in next topic.
Norway allows exporting country to combine non-originating materials to process the final goods but not exceed 40 % (RVC 40) of FOB value which separate into 3 types as following:
- Regional Cumulation such as use raw materials from ASEAN or EU
- Bilateral Cumulation such raw materials from Norway.
- Diagonal Cumulation which used raw materials from EU or Switzerland.
Transportation has to be direct consignment from exporting country directly to Norway. In case goods has to transport through third country, products are not undergone any operation and products have to be under custom’s inspection and in good condition.
In case transportation via EU or Switzerland and importers has purpose to resale or wholesales, products still be able to keep origin status and can obtain GSP from Norway.
This GSP’s not be used for 2 cases: 1.) Goods that not in purpose of commerce and not exceed 4100 (NOK); and 2.) Goods from travelers not exceed 10,000 (NOK).
To obtain benefit from Norway’s GSP, exporters have to use Certificate of origin Form A. Form A is available at Import and Export Department or Department of Import and Export from Provincial and Capital city.
Documents for require Certificate of Origin:
1). Application letter
2). Printed of Certificate of Origin
3). Invoices and Packing list
4). Customs Declaration
5). True copy of bill of lading
6). Bill of purchase (In case of buying)
7). Cost statement or working’s process (In case of imported raw materials)
In case of the export’s amount not exceed 100,000 NOK, exporters can certified by doing self- certificate or called ‘‘Invoice Declaration’’ instead to apply for form A.
Conclusion: Lao PDR is one of least developed countries and garment, and agriculture products are the main export. Therefore, Norway’s GSP bring positive impact and facilitate exporters for tariff reduction100 %.
For more information:
Information of Norway’s GSP and Rules of Origin can be found at:
Certificate of Origin Division,
Import and Export Department, Ministry of Industry and Commerce :
- Norway’s Customs :