Schemes of Preferences also help to reduce trade barriers. They are formed among nations who all agree to give preferential trade tariffs to participating nations.
What Are Schemes Of Preferences?
How Do Schemes Of Preferences Help My Business?
What Products Qualify Under Schemes Of Preferences?
How Do I Show That My Product Qualifies?
Where Can I Get More Information?
What Are Schemes Of Preferences?
- They are agreements among countries on the treatment of goods from donor/participating countries.
- There are 4 Schemes of Preferences:
- Global System of Trade Preferences (GSTP)
Some 44 countries, including Singapore, are participants in this system which offers preferential tariff treatment for eligible products exported from one participant country to another.
- Common Effective Preferential Tariff (CEPT) Scheme
This scheme benefits traders trading between ASEAN countries. It will reduce intra-regional tariffs on eligible products to between zero and five per cent.
- Generalized System of Preferences (GSP)
You can get preferential tariff treatment for some products exported from developing countries to developed countries, namely Belarus, Canada and the Russian Federation. Singapore is classified as a developing country under this GSP.
- Commonwealth Preference (CP)
Traders exporting goods from Singapore to Mauritius and the Seychelles can obtain preferential tariff treatment on eligible products.
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How Do Schemes Of Preferences Help My Business?
- Schemes of Preferences help to improve the competitive edge of your exports by enabling your buyers to claim preferential tariff treatment at the port of importation.
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What Products Qualify Under Schemes Of Preferences?
- Products originating from any of the countries covered by the Schemes are eligible. For instance:
- if you re-export goods from developing nations (e.g. Indonesia) to developed nations (e.g. France), your products can benefit from the Generalised System of Preferences scheme under the ASEAN Cumulation mechanism.
- if you export Singapore-made goods to Vietnam, you may benefit from the Common Effective Preferential Tariff (CEPT) Scheme.
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How Do I Show That My Products Qualify?
- You must show that your products originated from a country that is covered under the scheme.
- You need to obtain a Certificate of Origin from Singapore Customs to show the nationality of products.