EU not allows Chinese grasshoppers exploiting GSP for Myanmar

EMG 24.MAY 2013

The European Union (EU) will strictly regulate the rule of origins for imports from Myanmar so that Chinese abusers, also called “grasshoppers”, are not able to take undue advantage of EU’s Generalized System of Preferences (GSP) which offers tax advantage to Myanmar products, EU representative said.


Atty Stefan F. Moser from EU’s International Trade Relation spoke at a seminar on EU GSP at the head office of the Union of Myanmar Federation of Chamber of Commerce in Yangon on May 11.

He said that EU will not allow the Chinese businessmen to ship their products through Myanmar and export to EU taking advantage of EU GSP for Myanmar products. He requested Myanmar exporters to strictly follow the requirements in the application process of GSP.

Atty Stefan said there are two types of GSP called a simple GSP and a GSP Plus. Myanmar has been offered a simple GSP and the rules of origins and the country of origin certificates proving the products are actually from Myanmar are very important, he noted.

EU GSP’s tax benefits vary according to the kinds of products. Garment, which is EU’s major import from Myanmar, will entitle 15 percent tax relief.

Myanmar regained EU GSP last June and those products imported from Myanmar after GSP program started but has not received the benefits due in process will be offered back the GSP they entitled, Atty said.

Myanmar lost EU GSP over a decade ago due to human rights issue in the country. However, EU has gradually eased sanctions against Myanmar last year in view of its political and economic reforms.

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