The UK Government unveiled a series of reforms designed to streamline trade and bolster imports from developing nations under its Developing Countries Trading Scheme (DCTS). These adjustments are particularly beneficial for UK retailers that rely on sourcing from countries like Bangladesh and Cambodia.
The DCTS serves as the UK's successor to the Generalised System of Preference (GSP), which was in place during its EU membership. This scheme offers reduced or zero tariffs on thousands of products manufactured in 65 developing countries when imported directly into the UK. Importantly, UK exports do not receive any reciprocal relief under the scheme.
The newly announced enhancements include significant simplifications to the Rules of Origin. This crucial change will allow more goods from nations such as Nigeria, Sri Lanka, and the Philippines to enter the UK tariff-free, even if they incorporate components sourced from various countries across Asia and Africa. Furthermore, these updates ensure that key manufacturing hubs like Bangladesh and Cambodia will continue to benefit from zero tariffs on vital products, including tailored garments and electronics.
These reforms are expected to unlock new commercial avenues for UK businesses, enabling them to forge more resilient supply chains, invest in emerging markets, and tap into rapidly expanding economies.
Adam Mansell, CEO, UKFT, opines, these additional changes to the Rules of Origin under the DCTS 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 modernize trade policy to support global economic growth. At a time of such uncertainty in international trade, these reforms are especially welcome, he states. UKFT has been actively advising the UK government on necessary amendments since the DCTS was first introduced.
The updated rules are an integral part of the UK’s broader ‘Trade for Development’ initiative, which aims to foster economic growth in partner countries while providing UK businesses and consumers with access to high-quality, affordable goods. Industry leaders, including Monique Leeuwenburgh, Director-Sourcing, Marks & Spencer, and Eoin Tonge, Interim Chief Executive, Primark, have also voiced their approval, highlighting how these changes will help maintain existing supply chain strategies and trusted relationships with key sourcing partners.
