GSTP Certificate for Registration
Global System of Trade Preferences Online Registration
The GSTP stands for the Global System of Trade Preferences among Developing Countries; it is a multilateral trade agreement aimed at developing and advancing trading relations between developing countries. Introduced in 1989, it is a trade strategy aimed at establishing better trade cooperation with preferential tax reductions, improved market access, and enhanced economic relations. Started by the G77 and negotiated under UNCTAD, GSTP is important in the process of trade liberalization and development.
By joining GSTP, participating countries get access to trade opportunities to give exporters and manufacturers better access to markets at more desirable tariffs and taxes. Reduced import taxes and easier procedures for global trade allow holders of the GSTP Certificate to take advantage of improved opportunities for exporting their products. The agreement also focuses on trade liberalization of products under the south-south division, thus providing developing countries with a chance to diversify with traditional trading partners.
The GSTP has gone through several negotiation rounds, and countries have actively added new areas to the agreement. It not only helps increase the flow of imports and exports but also strengthens international relations and trade ties among member countries. It is also useful for countries that are still developing their trade relations and want to expand their reach. Below is a detailed explanation of how to get GSTP, its benefits, and the process of getting GSTP certification.
Table of Content
- What is Global System of Trade Preferences (GSTP) Certificate?
- Benefits of GSTP Certificate
- Process for GSTP Registration
- Documents Required for GSTP Registration
- Key Components of GSTP Certificate
- Role of Committee of Participants (COP)
- Fees for GSTP Registration
- Conclusion
- Frequently Asked Questions (FAQs)
What is Global System of Trade Preferences (GSTP) Certificate?
The Global System of Trade Preferences (GSTP) is a trade agreement among developing nations aimed at enhancing economic cooperation by reducing taxes and trade barriers. Established in 1988 under the United Nations Conference on Trade and Development (UNCTAD), it seeks to promote trade liberalization by improving market access for developing countries. Member nations negotiate agreements to lower taxes on the import and export of goods and services, fostering trade and economic development. The GSTP supports emerging economies by encouraging industrialization, diversifying exports, and strengthening regional integration. With over 40 member countries, including India, Brazil, and Indonesia, it plays a crucial role in expanding global trade opportunities.
Benefits of GSTP Certificate
A GSTP enrollment provides several benefits for exporters and businesses in participating developing countries. Here are the key advantages:
• Reductions – Allows the exporters to obtain lower taxes on the goods traded between the member countries of the GSTP.
• Market Access – It provides an easy opportunity for entry into foreign markets hence creating more trade opportunity.
• Competitive Advantage – Beneficial for businesses as it assists them in competing for customers by providing lower prices as a result of lower taxes.
• Enhanced Trade Relations – Enhances economic integration of developing nations, which will boost their cooperation within the region.
• Industrial Growth – This encourages the process of manufacturing and industrialization since it avails cheap raw materials and components
Process for GSTP Registration
To register for the Global System of Trade Preferences (GSTP) and obtain a Certificate of Origin, exporters must follow a structured process. Here’s a step- by-step GSTP Registration Procedure:
Step 1: Obtain Necessary Documents :
Documents required for GSTP registration include the Importer Exporter Code (IEC), Registration Cum Membership Certificate (RCMC), invoices, and other papers that the issuing authority might consider necessary.
Step 2: Online Registration:
Go to the GSTP official registration website, which is often established by DGFT, and apply
for an exporter account, inputting your company and personal data.
Step 3: Application for Certificate of Origin:
Once you logged in, you need to go to the COO section. It is necessary to complete the application form with accurate data and the documents for the goods, ITC HS code, the description, and the country of destination.
Step 4: Payment of Fees:
Pay the necessary processing fees which may include the sale price for the blank forms. Fees can either be made online or via bank drafts, depending on the format adopted by the portal.
Step 5: Submission and Review:
After filling the application form, make sure you review the form and then submit the application. The submitted documents and all the information shall be checked and confirmed by the relevant authority.
Step 6: Issuance of Certificate:
If all requirements are met, the Certificate of Origin will then be issued either online or physically, depending on the prevailing procedures of the issuing authority.
Documents Required for GSTP Registration
GSTP registration requires specific documents to ensure your business complies with export regulations. Here’s a list of the essential documents needed for the process.
General Documents:
- PAN Card
- Proof of Business Registration (Certificate of Incorporation or Partnership Deed)
- Identity Proof (Aadhaar Card)
- Photographs (Passport-sized)
- Business Address Proof (Electricity Bill, Property Tax Receipt, Rent Agreement, or Municipal Khata Copy)
- Bank Account Details (Bank statement copy or canceled check)
For Sole Proprietorship:
- PAN Card of the proprietor
- Aadhaar Card
For Partnership Firm:
- Partnership Deed
- PAN Card of the firm
- Aadhaar and PAN of all partners
For Limited Liability Partnership (LLP):
- LLP Agreement
- PAN Card of the LLP
- Aadhaar and PAN of designated partners
For Companies (Public/Private):
- Certificate of Incorporation from the Ministry of Corporate Affairs
- Memorandum and Articles of Association (MOA/AOA)
- PAN and Aadhaar of all directors and authorized signatory
- Board Resolution authorizing the application for GSTP registration
Key Components of GSTP Certificate
The GSTP agreement encompasses various arrangements to facilitate trade, including:
• Tariffs – Preferential tariff reductions on goods traded between member countries.
• Para-Tariffs – Arrangements concerning fees imposed on imports, separate from traditional tariffs.
• Non-Tariff Measures – Measures to address non-tariff barriers, such as quotas, licensing requirements, or other trade restrictions.
• Direct Trade Measures – Includes provisions for medium- and long-term trade contracts between countries.
• Sectoral Agreements – Agreements that focus on specific sectors to facilitate targeted trade cooperation.
Role of Committee of Participants (COP)
In the GSTP, the highest decision-making body is the Committee of Participants (COP). The implementation of the agreement is supervised by the COP, with assistance from the UNCTAD. The principal responsibilities of the COP include the evaluation of the functioning of the agreement, the making of decisions regarding the terms of the agreement, and supervision of the efficient functioning of the agreement within the participating developing countries.
Fees for GSTP Registration
The total cost for GSTP registration is ₹6,235, covering a 736 government fee, ₹500 one-time registration fee, ₹2,000 application fee, and ₹2,999 professional fee, ensuring a smooth registration process. Below is the detailed structure:
| Particulars | Fees |
|---|---|
| Government Fee | ₹ 736 |
| Application Fee | ₹ 2000 |
| One time registration fee | ₹ 500 |
| Professional fee | ₹ 2,999 |
| Total cost of registration | ₹ 6,235/- only |
Note : This certificate is generally valid for one year from the date of issuance. After this period, exporters must renew the certificate for continued use in international trade.
Conclusion
The GSTP certification offers many advantages to exporters, including preferential tariffs, extended market access, and other competitive advantages in international markets. For easy registration, consult Professional Utilities. Our expert team will guide you through every step of the process, from collecting the necessary documents to completing the online enrollment, acquiring the Certificate of Origin, making payments, and submitting your application for consideration. The GSTP certificate is crucial for companies interested in international market penetration and obtaining privileged trading conditions within the group of developing states. The certification is valid for one year and can be renewed afterward.
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Frequently Asked Questions (FAQs)
GSTP refers to tariff cutting among developing countries while GSP enables industrialised countries give special trade concessions to developing countries on certain products.
International trade can be defined as the exchange of goods and services from one country to another through several trading agreements, such as WTO, bilateral treaties with other nations, and multilateral agreements such as the GSTP.
GSTP offers trade benefits, including concessions in tariffs, market access, favoured trade opportunities, and improved trade relations, to the businesses that participate in international trade, thereby promoting the trade relations and industrial growth of the region.
The GSTP Certificate is typically valid for one year from the date of issuance. After one year, exporters need to renew the certificate to maintain its benefits for international trade.
To renew your GSTP Certificate, submit a renewal application with updated documents and pay the required fees. Renewal is required annually.
Yes, small businesses can benefit from GSTP by accessing international markets at reduced tariffs, making their products more competitive globally.
GSTP registration is not mandatory but highly beneficial for exporters aiming to enhance market access and reduce tariff costs in member countries.
The GSTP registration process typically takes 1-2 weeks, depending on the accuracy of the submitted documents and processing speed of the issuing authority.
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