Overview

Switzerland government has granted GSP to 117 developing countries and 49 Least Developing Countries (LDCs). Lao PDR is one of LDCs that obtained benefit from Switzerland’s GSP.

List of goods that Switzerland gives preference is dividing by group of countries that can obtain preference such as, Developing countries will get tariff exemption for importing agricultural and industrial goods except textiles and clothing that received tariff reduction 50% from MFN rate. LDCs receive the treatment for all products by obtaining exemption tariff and unlimited quota for all products which includes agricultural and industrial goods.(Click here for more details)

Rule of Origin (ROO)

In order to qualify Switzerland’s GSP, Exporters have to meet the origin criteria and also have Certificate of Origin called form A. To qualify ROO requirement, exporters have to fulfilled criteria as follows:

1.      Wholly obtained or produced Goods (WO) basically are agriculture products (plants, animals), minerals, etc. that are products of the origin by automatically (WO) and be able to ask for tariff exemption.

2.      Goods produced from import raw materials that have to gone through sufficient process

3.      Change in tariff heading (CTH) mean that HS code of Raw materials have to be different from final products

4.      Regional Value Added which means the amount of using raw materials does not exceed FOB value.

Cumulation

Switzerland allows using non-origin materials to produces final products by following RVC rule as follows:
·         Raw materials that have origin criteria from Switzerland, Norway or EU, Switzerland will count these materials as origin materials which had been set by Donor country Constant rule but all of these materials have to have certificate of origin which call ER1 from Switzerland, Norway, or EU attached with.
·         Raw materials that have origin from ASEAN Member States (Except Singapore, Brunei) can be count as cumulation rule of origin material but raw materials have to have Certificate of origin from A from origin country (Cumulation or Invoice Declaration).

Limitation

Switzerland Preference will be waived for: 1) Goods that not in purpose of commerce and not exceed 900 CHF or equal to 986.40 USD;
Goods export below 10,300 CHF or equal to 11,890 USD can issue Invoice Declaration instead of from A.

Transport requirements

Normally for the preference to be granted the requirement for direct transport (Direct Consignment) from beneficiary countries to Switzerland has to be fulfilled. In case of face difficulties of geographical, goods can be transport through third country but have to be under customs supervision.

Supporting documentation

The certificate of origin From A can be acquired from the Department of Import and Export, or the Provincial Departments of Industry and Commerce and the Authority on Special and Specific Economic Zone. Documents required for the application are:

1). Application Letter;
2). Form A with fill-in data;
3). Invoice and Packing List;
4). Detailed Customs Declaration;
5). Copy Bill of Ladding;
6). Bill of purchase (In case of buying)
7). Cost statment or working processing  (in case of imported raw materials). 

Conclusion: To obtain benefit from Switzerland’s GSP, Exporters from Lao PDR have to follow these criteria: 1. Goods have origination from Lao PDR 100% such agricultural products and mining; or 2. If there is an import non- origin raw materials, parts or other components (Import from ASEAN, EU, or etc) goods have to gone through sufficient process or follow the products specific rule that design by Switzerland. 

Inquiry:

Any inquiry regarding GSP and ROO of the Turkey can be addressed to:
Certification of Origin Division, Department of Import and Export, Ministry of Industry and Commere
Web: http://www.laotradeportal.gov.la
Tel/Fax: 021-450255, email: [email protected]

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