In order to enjoy the Generalised Scheme of Preferences (GSP) facility, Nepali exporters will have to register their companies in European Union (EU) countries by the end of 2016 under which they will pay less or no duties on their exports. According to Tej Singh Bista, Deputy Executive Director of Nepal’s Trade and Export Promotion Centre, the EU will provide duty-free access only to companies registered there from January 1, 2017.

He added that registered Nepali companies would not need to get the approval of the customs department to receive the facility. The EU countries will provide their code to the registered companies. Based on the code, the companies can declare their products themselves to receive the GSP facility.

The EU has been providing duty-free access to products imported from the least developed countries (LDCs) including Nepal since 2001. It revised the provision in 2014 and extended 100 per cent duty-free facility to these countries under the ‘Everything but Arms’ scheme. Bista said the scheme had opened the way for almost all the products exported from Nepal. However, exporters have not been able to benefit fully from the facility due to the poor quality of their products and procedural complexities. The GSP reduces the cost of exported goods by 8 to 10 per cent.