GSP+
The Ministry of Economic Development of Azerbaijan Republic
Existing and new export markets and access opportunities to these markets
Foreign trade of Azerbaijan over 2004-2009 (mln. U.S. $)
25,000.0
20,000.0
15,000.0
10,000.0
5,000.0
0.0
2004
2009
import
3,515.9
6,119.7
export
3,615.4
14,698.5
turnover
7,131.4
20,818.2
List of eligible countries that products of Azerbaijani origin can be exported with preferential terms Countries bounded free trade agreements with Azerbaijan Belarus Kazakhstan Kyrgyzstan Moldova Uzbekistan Russia Tadjikstan Turkmenistan Ukraine Georgia
Countries applying GSP to Azerbaijan
European Union(GSP+) USA Switherland Canada Norway Turkey Japan
Share of countries applying preferential trade regime within the framework of GSP and Free Trade Agreements in Azerbaijan export for 2009
Other countries 29.24%
FTA rejime applying countries 10.42%
GSP applying countries 60.34%
Share of countries applying the preferential trade regime within the framework of GSP and Free Trade Agreements in non-oil export of Azerbaijan for 2009
Comparative analysis of using level of Azerbaijan and Georgia from GSP program of EU (mln. euro) 2004 Goods GSP could Azerbaijan be applied
Using level from GSP
Using correlation from GSP (%)
2005
2006
2007
2008
2009
46,2 122,7 363,7 122,1 48,2 60,5
Georgia
75,0 122,8 98,4 114,2 131,0
Azerbaijan
25,6 49,1 31,9 30,9 19,9 35,41
Georgia
60,8 95,7 76,4 82,3 105,5
Azerbaijan
55,4 40,0
Georgia
81,1 77,9 77,6 72,1 80,5
8,8 25,3 41,3 58,5
Explanation of created opportunities of European Union GSP+ program in the example of basic goods and goods groups
Goods will be export to EU within the framework of GSP+ and classified in 97 groups of HS commodity nomenclature
68 groups are completely free from customs duty;
10 commodity groups are completely free from ad valor customs tariffs. These goods only apply to specific tariffs;
Great part of the goods applied in 11 commodity groups have been liberated from customs duties ;
Few part of the goods have been liberated from customs duties applied in other 8 goops of goods.
-7-
Applied customs duties of EU to some products within the framework of GSP+ Normal applied customs duties
Pear Juice
customs duties within framework of GSP+
33,6 %+ 20,6€/100 kq
0+20,6€/100 kq
Apple mush
24 % + 4,2€/100 kq
0+ 4,2€/100 kq
jam
24 % + 4,2€/100 kq
0+ 4,2€/100 kq
16,8 %+ 20,6€/100 kq
0+ 20,6€/100 kq
Apple juice
18%
0
Pomegranate
8,8%
0
Date
7,7%
0
nut
3,2%
0
Apricot juice
Basic conditions of using from GSP+ concessions
To use the concessions while exporting products within the framework of GSP+ must be presented “Forma A” origin certificate.
These products must be directly exported to the one of the country of European Union. Products can be transmit from non EU countries only in transit regime. If any product reexport to EU after exporting to 3rd country is not to liberate from customs duty within framework of GSP program Simultaneously, must not be made changes on the product that can be cause original changes of the harvest in the area of 3rd countries
-9-
Exporting agricultural products and foodstuffs to EU with “GSP+” system While exporting agricultural products and foodstuffs to EU with “GSP+” system the demands are following below: Standardizing, certificating, etiquette and packing up of the production of product have to adapt to demand of EU; Adapting the legislation base about agricultural products corresponding legislation base of the European Union
to the
Being laboratories carrying out examinations to specify compliance of quality and safety figures of products on relevant groups with EU standards Forming of the supervision to quality systems in Management; conducting monitoring to explore Ecological cleanness (water, soil, air)
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Existing and new export markets and access opportunities to these markets
Foreign trade of Azerbaijan over 2004-2009 (mln. U.S. $)
25,000.0
20,000.0
15,000.0
10,000.0
5,000.0
0.0
2004
2009
import
3,515.9
6,119.7
export
3,615.4
14,698.5
turnover
7,131.4
20,818.2
List of eligible countries that products of Azerbaijani origin can be exported with preferential terms Countries bounded free trade agreements with Azerbaijan Belarus Kazakhstan Kyrgyzstan Moldova Uzbekistan Russia Tadjikstan Turkmenistan Ukraine Georgia
Countries applying GSP to Azerbaijan
European Union(GSP+) USA Switherland Canada Norway Turkey Japan
Share of countries applying preferential trade regime within the framework of GSP and Free Trade Agreements in Azerbaijan export for 2009
Other countries 29.24%
FTA rejime applying countries 10.42%
GSP applying countries 60.34%
Share of countries applying the preferential trade regime within the framework of GSP and Free Trade Agreements in non-oil export of Azerbaijan for 2009
Comparative analysis of using level of Azerbaijan and Georgia from GSP program of EU (mln. euro) 2004 Goods GSP could Azerbaijan be applied
Using level from GSP
Using correlation from GSP (%)
2005
2006
2007
2008
2009
46,2 122,7 363,7 122,1 48,2 60,5
Georgia
75,0 122,8 98,4 114,2 131,0
Azerbaijan
25,6 49,1 31,9 30,9 19,9 35,41
Georgia
60,8 95,7 76,4 82,3 105,5
Azerbaijan
55,4 40,0
Georgia
81,1 77,9 77,6 72,1 80,5
8,8 25,3 41,3 58,5
Explanation of created opportunities of European Union GSP+ program in the example of basic goods and goods groups
Goods will be export to EU within the framework of GSP+ and classified in 97 groups of HS commodity nomenclature
68 groups are completely free from customs duty;
10 commodity groups are completely free from ad valor customs tariffs. These goods only apply to specific tariffs;
Great part of the goods applied in 11 commodity groups have been liberated from customs duties ;
Few part of the goods have been liberated from customs duties applied in other 8 goops of goods.
-7-
Applied customs duties of EU to some products within the framework of GSP+ Normal applied customs duties
Pear Juice
customs duties within framework of GSP+
33,6 %+ 20,6€/100 kq
0+20,6€/100 kq
Apple mush
24 % + 4,2€/100 kq
0+ 4,2€/100 kq
jam
24 % + 4,2€/100 kq
0+ 4,2€/100 kq
16,8 %+ 20,6€/100 kq
0+ 20,6€/100 kq
Apple juice
18%
0
Pomegranate
8,8%
0
Date
7,7%
0
nut
3,2%
0
Apricot juice
Basic conditions of using from GSP+ concessions
To use the concessions while exporting products within the framework of GSP+ must be presented “Forma A” origin certificate.
These products must be directly exported to the one of the country of European Union. Products can be transmit from non EU countries only in transit regime. If any product reexport to EU after exporting to 3rd country is not to liberate from customs duty within framework of GSP program Simultaneously, must not be made changes on the product that can be cause original changes of the harvest in the area of 3rd countries
-9-
Exporting agricultural products and foodstuffs to EU with “GSP+” system While exporting agricultural products and foodstuffs to EU with “GSP+” system the demands are following below: Standardizing, certificating, etiquette and packing up of the production of product have to adapt to demand of EU; Adapting the legislation base about agricultural products corresponding legislation base of the European Union
to the
Being laboratories carrying out examinations to specify compliance of quality and safety figures of products on relevant groups with EU standards Forming of the supervision to quality systems in Management; conducting monitoring to explore Ecological cleanness (water, soil, air)
- 10 -
