• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 1/6/2014

EU - Certain beneficial duty rates expiring in 2015 

January 6: As of 1 January 2015, imports of goods originating from China, Ecuador, the Maldives, and Thailand will no longer benefit from a zero or reduced EU customs duty rate, unless these countries enter into free trade agreements with the European Union.

China, Ecuador, the Maldives, and Thailand have been classified as upper-middle income countries in 2011, 2012 and 2013—i.e., these countries are removed from the list of eligible countries under the new Generalized System of Preferences (GSP), effective 1 January 2015.

As of that date, the importation of goods originating from these countries will no longer benefit from a zero or reduced EU customs duty rate, unless these countries enter into a free trade agreement with the EU.

To date, only the EU and Thailand are actively negotiating such agreement although it is currently not expected that a free trade agreement would be concluded and ratified before 1 January 2015.

Read a January 2014 report prepared by the KPMG member firm in the Netherlands: Generalized System of Preferences (GSP) 2014 - Update

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