Overview of EAEU GSP Case Model
The EAEU GSP provides critical advantages to exporters from developing countries like the Philippines, fostering trade trough tariff preferences, compliance infrastructure, and strategic positioning in Eurasian markets.
Philippine exporters benefit from reduced or zero-duty access to the EAEU market, enhancing price competitiveness across sectors such as agriculture, textiles, and electronics.
With a well-established origin certification system and simplified documentation (e.g., invoice declaration under $5,000), even SMEs can easily access GSP benefits.
EAEU GSP facilitates entry into large and growing markets like Russia and Kazakhstan, where Philippine products such as coconut goods and garments enjoy favorable perception and demand.
Shorter transit times and lower freight costs to EAEU ports (e.g., Vladivostok) give the Philippines a competitive edge over non-GSP exporters.
Strategic Factors Enhancing the Philippines' Position
Sample Product
HS CODE : 1513.19
| Target Market | MFN Tariff | GSP Tariff | Competitor |
|---|---|---|---|
| Russia (also applicable to Belarus, Kazakhstan) |
10% | 7.5% | Thailand, Brazil |
Textile HS Code Classification Principle in Mixed Materials
GSP Compliance Infrastructure
Efficient and accurate issuance of Certificates of Origin through systems managed by DTI and BoC
Easily accessible even for small-scale exporters, especially with the option of invoice declaration for shipments under $5,000
Brand Recognition in the EAEU Market
Philippines coconut products are associated with natural and healthy qualities, which are in high demand in Russia and Kazakhstan.
Certain organic variants can target premium consumer segments
Preferential Access Compared to Non-GSP Competitors
Brazil and Thailand are either excluded from GSP benefits for this product or face limitations
Even for similar products, the Philippines has an advantage in meeting or simplifying origin criteria
Case Model Diagram
Eligibility for GSP benefits for coconut
Logistics Cost Advantage
GSP Utilization Advantage vs Non-GSP Exporters
| Comparison point |
 Philippines
|
Thailand
|
Brazil
|
|---|---|---|---|
| GSP Status (HS 1513.19) |
GSP Applicable | Not Applicable | Not Applicable |
| Tariff Applied | GSP 7.5% | MFN 10% | MFN 10% |
| Transport Mode | Sea via Singapore / Busan | Sea via Singapore / Busan | Sea via Atlantic + Suez |
| Average Transit Time to Russia (Vladivostok) |
30-35 days | 35-40 days | 50-60 days |
| Average Freight Cost(20ft) | $2,200 – 2,800 | $2,200 – 2,800 | $3,800 – 4,500 |
Tariff Edge: Only the Philippines enjoys 7.5% GSP rate
Transit Advantage: Shorter sea route to Vladivostok vs Brazil & Thailand
Freight Cost Benefit: Up to 40% lower than Brazil, and competitive with Thailand
Overall, the Philippines holds a strategic dual advantage in exporting to the EAEU market — benefiting not only from reduced tariffs under the GSP scheme but also from lower freight costs and faster transit times compared to non-GSP competitors like Brazil and Thailand.
Latest Updates and Statistics (as of April, 2025)
Recent developments in the EAEU GSP reflect shifts in beneficiary status, trade patterns, and ongoing modernization efforts.
China and other advanced economies have been removed from the GSP list, with potential additions of new Least Developed Countries (LDCs) still pending confirmation.
Between 2020 and 2024, EAEU imports from GSP countries grew by 6% annually, with Least Developed Countries (LDCs) contributing 25% to this growth.
Since 2009, product coverage under the GSP has likely expanded by 10%, and the origin verification process is expected to be simplified by 2025.