The UK’s Developing Countries Trade Scheme (DCTS) has now come into force. DCTS is the UK’s new replacement for the Generalised System of Preference (GSP) which existed while the UK was an EU member and was carried into the UK law after the UK left the EU single market.  The scheme aims to provide tariff reductions on goods manufactured in developing countries when they are imported directly into the UK. UK exports do not benefit from any relief under the scheme.

Like the UK’s GSP scheme, there is no cumulation between DCTS and the EU’s GSP scheme. This means that while goods may come into the UK duty free from DCTS countries under DCTS, they would not receive duty free status on their onward journey to the EU or any other country.

While most of the countries on the DCTS scheme were already on the UK’s GSP scheme there have been some changes to the countries which can benefit and the new scheme makes it potentially easier for DCTS countries to work together to manufacture goods which will have preference in the UK market in ways which were not possible before. This was one of UKFT’s key requests of the new scheme as it potentially helps regions to work together to grow their ethical and sustainable manufacturing supply chain.

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UKFT has produced a series of guides to some of the key export markets for UK fashion and textiles and the latest Free Trade Agreements. We have also produced guides to some of the key import markets for UK fashion brands. Find out more here.