What is the meaning of GSP? Customs Terms & Definitions | Gerlach (2024)

What is the meaning of GSP?

The GSP (Generalised System of Preferences) is a trade policy instrument of the EU, which grants developing countries so-called tariff preferences, i.e. tariff reductions up to complete exemption from customs duties. They apply to the import of finished industrial products as well as to processed agricultural products originating in the respective developing country.

The GSP is intended to help developing countries to increase their sales on the markets of industrialised countries. It should also help them to develop new trade potential. The Regulation on the European Union’s Generalised System of Preferences is limited in time: It is revised every ten years. To take advantage of the customs advantages, it is necessary to register in the so-called REX system.