Generalized System of Preferences

Generalized System of Preferences, a policy promoted by the United Nations Conference on Trade and Development under which developed countries grant tariff exemptions to imports, encourages the developed countries to purchase the manufactured and semi-manufactured goods from developing countries enter at lower tariffs than the same products from developed countries.

The Generalized System of Preferences follows three principles.

a.           Non-Discrimination;

b.           Generalized;

c.           Non-Reciprocity.

Three requests must be followed up to carry out Generalized System of Preferences;

a.           Rules of Origin;

b.           Direct Consignment;

c.           Generalized System of Origin.