GSP+ & Duty-Free Access for Sri Lankan Exports (EU & UK Buyers)

One of the strongest, and most overlooked, reasons to source from Sri Lanka is duty. Sri Lanka is a beneficiary of the EU’s GSP+ scheme and the UK’s preferential scheme, which cut import duty to zero on a large share of products for qualifying buyers. On high-volume sourcing, that can be the difference that makes Sri Lanka cheaper landed than a “cheaper” origin. This guide explains how it works and how to actually claim it.

What GSP+ Is

The EU’s Generalised Scheme of Preferences Plus (GSP+) grants zero or reduced tariffs to vulnerable developing countries that ratify and implement international conventions on human rights, labour, environment and good governance. Sri Lanka qualifies, so many Sri Lankan-origin goods enter the EU duty-free. The UK runs its own Developing Countries Trading Scheme (DCTS) with similar preferences post-Brexit.

How to Claim It

1. Check the product & HS code against the EU/UK preference for Sri Lanka (your customs broker can confirm the duty rate with and without preference).
2. Confirm rules of origin: the goods must be wholly obtained or sufficiently processed in Sri Lanka.
3. Get the proof of origin: under the EU’s REX system, a registered exporter issues a Statement on Origin; ask whether your exporter is REX-registered.
4. Present it at import: your broker claims the preferential rate on the customs entry.

Why It Matters for Landed Cost

Compare landed cost, not FOB. A Sri Lankan product entering the EU at 0% under GSP+ can beat an origin with a lower FOB but a 6 to 12% MFN duty. Factor the preference into your landed-cost calculation, and make REX/proof-of-origin part of your supplier vetting.