A publication on the gov.uk website dated 16/08/2022 gives an update on the new Developing Countries Trading Scheme (DCTS) set to replace the UK’s Generalised Scheme of Preference (GSP) early in 2023.
The aim of the DCTS is to introduce one of the most generous sets of trading preferences for developing countries in the world. It will apply to sixty-five countries and will offer lower tariffs as well as simpler rules of origin for the developing countries exports to the UK. This will benefit exporters in these developing countries and also help developing countries grow their economies as well as reducing costs and improving choice for UK businesses and households.
The DCTS will have three tiers just like the current UK GSP but they will be named differently. The DCTS tiers and their current equivalents are as below.
· DCTS Comprehensive Preferences – currently the GDP Least Developed Countries
· DCTS Enhanced Preferences – currently the GSP Enhanced Framework
· DCTS Standard Preferences – currently the GSP General Framework
As well as lowering tariffs on goods for developing countries one of the changes that the DCTS is aiming to bring about is simplifying the rules of origin for goods from developing countries by simplifying and liberalising products specific rules as well as extending cumulation. These changes will allow for more goods to fall into the scope for preference and so also help to improve trade between developing countries and the United Kingdom.
Pro Customs Solutions will keep an eye out for updates on the implementation of the DCTS and any effect it may have on importers.
The link to the gov.uk publication is below for further reading.
If you need any help with your UK customs entries, please feel free to contact us on the below email
