The Generalized System of Preferences of Australia


Australia is one of the developed countries that given Generalized System of Preferences (GSP) to developed, developing and least developed countries since 1966. Australia GSP has been revised several times and the latest revision is on 1 July 1994 which has been improved to reduce the tariff rate for developing countries and on 1 July 2003 for the Least Developed Countries: LDCs. (Click here for details)

GSP Scheme

 Generalized System of Preference: GSP of Australia includes 2 types as follows:

1). General Preferential Tariff: GPT

It is a preferential treatment granted to developing countries started on 1 July 1994 by reducing import tariff rate (MFN) from some products from 5% to 0% and other goods which decrease tariff rate from 40% to 0%.

2.) Special Preference Treatment for LDC

LDCs receive the treatment more favorable than developing countries, by obtaining exemption tariff rate (0%) and unlimited quota for most import products. Laos is one of the least developed countries that receive the treatment under this arrangement. The purpose to given special preferential treatment is to promote competiveness among the Least develop countries in order to granted higher advantages than  developing countries.

Besides receiving preferential treatment under GSP Scheme, Lao PDR also receives preferences under ASEAN-Australia and New Zealand, which will be summarized information separately. 

Rules of Origin: ROO

Products need to be excluded from import duty under Australia GSP must follow ROO requirement as following:

A.      Unfinished products
Wholly Obtained: WO, basically are agriculture products (plants, animals), minerals, etc. that are products of the origin by automatically (WO).

B. Processing products

Processing products have to meet requirement of Substantial Transformation and final stage of the products have to produce in LDCs as following:

1.)  value added
2.) products specific rule  such  textile, fabrics, hand tools, clothes and others.


 The principles of cumulation under the preference system of Australia are as follows:

 1.) Use raw materials from the least developed countries with the cumulative value added not less than 50% of the cost of production.
2.) Use raw materials from Australia, the developing countries and Island Country which Australia is a part party to bring the processed, but the cost of raw materials used in the processing may not exceed 25% of the cost of production.

 Certificate of Origin

 In order to get the preferential tariff treatment from Australia, exporters (a producer only) they can do self-certificate without certificates of origin from the government authority but the exporter must follow the rules of origin strictly.

 However, Form A can obtain from the Department of Import and Export, Ministry of Industry and Commerce, Industry and trade service of provinces; Chamber Commerce and Industry of province, Vientiane - Nonthong Special Industry Zone.

 Document needed for request 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.) Domestic invoices (in case of domestic buying);
7). Cost statement or working’s process (in case of imported raw materials).


Australia has to be direct consignment the same as other exporter’s countries.

For more information:

Division of origin, Department of Import and Export,

Ministry of Industry and Commerce.

Tel + 856 21 450 255


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