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Understanding the Developing Countries Trading Scheme

Today, 19th June 2023, the Developing Countries Trading Scheme (DCTS) officially replaced the Generalised Scheme of Preferences (GSP).

The DCTS supports developing countries in the same way as the GSP by providing unilateral benefits for exporters from less developed countries to benefit from tariff reductions when their products are imported into the UK.

As with the GSP, the countries which are eligible to benefit from the DCTS are pre-determined and the scheme is not open to exporters from all countries. Also, some countries who may have been eligible under the criteria, will not actually appear under the DCTS due to the fact that they share a Free Trade Agreement with the UK.

The Government states that the new DCTS will go beyond the old GSP offerings by:

  • Reducing tariffs

  • Liberalising rules of origin requirements

  • Simplifying the conditions attached to the scheme

Importing businesses should consider their supply chain and, if appropriate, understand the benefits of meeting the requirements to import the products under the preferential tariff rate.

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