Explanation:

It is a preferential tariff system which provides for a formal system of exemption from the more general rules of the World Trade Organization (WTO). Specifically, it is a system of exemptions from the most favoured nation principle (MFN) that obliges WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their "most favoured" trading partner. In essence, MFN requires WTO member countries to treat imports coming from all other WTO member countries equally, that is, by imposing equal tariffs on them. GSP exempts WTO member countries from MFN for the purpose of lowering tariffs for the least developed countries, without also lowering tariffs for rich countries. For e.g. the European Union (EU) has amended its Generalized System of Preferences (GSP) Scheme by introducing the concept of self-certification from 2017 onwards for which the office of the DGFT has taken out Public Notice providing the details of the implementation of the EU GSP self-certification scheme in India.