UKFT welcomes additional changes to the Rules of Origin under DCTS
10/07/2025
The UK government has announced a package of reforms to simplify trade and boost imports from developing countries under the Developing Countries Trading Scheme (DCTS).
The changes are particularly significant for UK retailers which source from countries like Bangladesh and Cambodia. The DCTS is the UK’s 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. DCTS covers 65 countries and offers reduced or zero tariffs on thousands of products.
The upgrades announced include simplified rules of origin, enabling more goods from countries like Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free — even when using components from across Asia and Africa. They also ensure countries such as Bangladesh and Cambodia continue to benefit with zero tariffs on products like tailored garments and electronics.
The changes aim to open up new commercial opportunities for UK businesses to build resilient supply chains, invest in emerging markets, and tap into fast-growing economies.
Adam Mansell, CEO of UKFT said: ‘’UKFT welcomes these additional changes to the Rules of Origin under the DCTS, which will bring real benefits to the fashion industry in the UK and in DCTS countries. The new rules demonstrate a genuine commitment from the government to modernise trade policy to support global economic growth. At a time of such uncertainty in international trade, these reforms are especially welcome.’’
UKFT has been advising the UK government on the need for amendments since the DCTS was introduced.
The updated rules are part of the UK’s wider Trade for Development offer which aims to support economic growth in partner countries while helping UK businesses and consumers access high-quality, affordable goods.
Monique Leeuwenburgh, Director of Sourcing at Marks & Spencer, said “We are supportive of changes to the DCTS rules of origin for garments. The ongoing collaboration between the government and retail industry has provided clarity and certainty for businesses in good time.
“This change will enable us to maintain our long-standing and trusted relationships with our key partners in Bangladesh, to deliver the same great quality Clothing & Home products at great value for our customers.”
Eoin Tonge, Interim Chief Executive at Primark, said: “We welcome the changes to the DCTS rules of origin for garments which remove the potential cliff edge when a country graduates from Least Developed Country status.
“This will help us to maintain our existing supply chain strategy in our key sourcing markets in Asia, such as Bangladesh and Cambodia.
“We welcome the opportunity to collaborate with the government on these changes and their responsiveness to the concerns of UK retailers in this very technical area of trade policy.”
International Business
UK fashion and textiles have a global reputation for quality, creativity and innovation. Through our international trade campaigns, we showcase and promote the UK fashion and textile industry at events around the world.
Our tailored international business support helps UK companies to navigate changing markets, understand complex global trading arrangements and comply with international regulations.
Voice of the industry
As the voice of UK fashion and textiles, UKFT is committed to creating the best environment for our industry. We represent the entire fashion and textile supply chain, promoting our industry in the UK and overseas.
We demonstrate the strategic and economic value of our vibrant industry to government and policymakers, ensuring the key issues are on the agenda. We champion our diverse and valuable industry through campaigns and key activities.
Not yet a member? Find out more about UKFT membership here.