UK DCTS — preferential tariffs for imports from developing countries (GSP successor)

What is UK DCTS and how does it differ from the EU GSP?

UK DCTS (Developing Countries Trading Scheme) is an autonomous, unilateral preferential tariff scheme of the UK Government that replaced the EU GSP (Generalised Scheme of Preferences) after Brexit. The EU GSP applied in the UK as part of EU law until 31 December 2020 — after the UK's exit from the EU, GSP rules ceased to apply automatically in Great Britain, and the UK Government introduced its own temporary scheme (UK GSP) which, from June 2023, was transformed into the DCTS.

Key differences between UK DCTS and EU GSP:

• Autonomy: DCTS is entirely created and managed by the UK Government — it is not linked to the EU GSP or any EU trade agreement. Countries covered by DCTS do not necessarily coincide with those covered by the EU GSP.
• Three preference tiers: DCTS introduces a simplified structure of three tiers (Enhanced, Standard, DCTS Lite) instead of the more complex EU GSP structure (GSP, GSP+, EBA).
• Rules of origin: DCTS has its own Rules of Origin, which differ from the EU GSP rules — exporters selling to both the UK and the EU must check whether their goods meet the requirements of both schemes separately.
• Nature: Like the EU GSP, DCTS is NOT a free trade agreement — it is a unilateral gesture by the UK towards developing countries, which can be changed or withdrawn at any time by the UK Government without negotiation with beneficiary countries.

Source: gov.uk/guidance/developing-countries-trading-scheme.

History of DCTS — from EU GSP through UK GSP to DCTS

Before Brexit, the UK applied the EU GSP as part of EU law. After the UK left the EU (31 December 2020), the UK Government introduced a temporary UK DCTS (based on the EU GSP) on a continuity basis (Continuity Scheme), which was in force between 2021 and 2023. From June 2023, a fully reformed DCTS came into force — a separate British scheme with a new country list, revised rules of origin and a simplified tier structure. DCTS is the first autonomous UK preferential tariff system for developing countries since Brexit.

The three DCTS preference tiers — Enhanced, Standard and DCTS Lite

UK DCTS divides beneficiary countries into three tiers, each offering a different range of duty reductions. The preference tier depends on the country's level of economic development — least developed countries benefit from the broadest preferences. The tiers are described below. The current list of countries assigned to each tier is available at gov.uk/guidance/developing-countries-trading-scheme. This article reflects the legal position as at 2026-06-06. Please consult a customs broker before taking action.

Enhanced Preferences (EP) — zero or very low duty for LDCs

Enhanced Preferences (EP) is the highest DCTS preference tier, intended for least developed countries (LDC — Least Developed Countries) as classified by the United Nations. EP countries benefit from:

• Zero or very low duty rates on almost all goods imported into the UK — comparable to the EBA (Everything But Arms) principle in the EU GSP.
• Preferential coverage across almost the entire range of HS codes — with limited exceptions (e.g. certain agricultural products subject to special trade regimes).
• Simplified rules of origin compared to the Standard and DCTS Lite tiers.

Example EP countries: Bangladesh, Ethiopia, Tanzania, Mozambique, Cambodia, Myanmar, Afghanistan, Yemen, Mali, Niger, Rwanda. Full list at gov.uk. Source: gov.uk/guidance/developing-countries-trading-scheme.

Standard Preferences (SP) — reduced duty for lower-middle income countries

Standard Preferences (SP) is the second DCTS tier, intended for lower-middle income countries. SP countries benefit from:

• Reduced duty rates on most goods — the range of reduction is smaller than under EP, but still significant compared to standard UK Tariff rates.
• The list of goods covered by SP preferences is defined in the Schedule SP published by the DBT (Department for Business and Trade) on gov.uk.
• SP rules of origin are more stringent than for EP — they require evidence of sufficient processing.

Example SP countries: Cameroon, Ghana, Pakistan, Senegal, Kenya (selected goods), Ivory Coast. Full list at gov.uk/guidance/developing-countries-trading-scheme. Source: gov.uk/guidance/developing-countries-trading-scheme.

DCTS Lite — limited preferences for selected countries

DCTS Lite is the third and narrowest preference tier, intended for selected countries that do not qualify for EP or SP due to a higher income level or other factors, but are still considered developing countries in need of trade support. DCTS Lite countries benefit from:

• A limited range of duty reductions — preferences apply to a narrower range of goods and HS codes.
• Preferences focused on sectors of key importance to the country's exports.

Example DCTS Lite countries: India, Nigeria (selected products). Full list at gov.uk. Source: gov.uk/guidance/developing-countries-trading-scheme.

Countries covered by UK DCTS — where to find the current list

UK DCTS covers more than 65 developing countries worldwide, divided according to the three preference tiers. The list of countries and their assigned preference tiers is published and updated by the UK Government on gov.uk. Official verification sources are indicated below. This article reflects the legal position as at 2026-06-06. Please consult a customs broker before taking action.

Official DCTS country list — how to verify

The current DCTS country list along with assigned preference tiers (EP, SP, DCTS Lite) is available at:

• gov.uk/guidance/developing-countries-trading-scheme — the main page with a description of the scheme and links to product and country lists
• gov.uk/guidance/developing-countries-trading-scheme — full product and country schedules, with a breakdown of preferential rates for each tier
• trade-tariff.service.gov.uk — UK Trade Tariff online: enter the HS code of the goods and select the country of origin — the system will display the current DCTS rate for that combination

Important note: the DCTS country list may change — countries can be upgraded, downgraded or removed from the scheme by UK Government order. Always verify the current country status on gov.uk or in the UK Trade Tariff before submitting an import declaration.

Geographical distribution of DCTS countries

DCTS countries are concentrated mainly in the following regions:

• Sub-Saharan Africa: the largest group of EP and SP countries — including Ethiopia, Tanzania, Mozambique, Ghana, Senegal and Rwanda
• South and South-East Asia: Bangladesh (EP), Pakistan (SP), Cambodia (EP), Myanmar (EP), India (DCTS Lite)
• Caribbean and Pacific: selected island nations classified as LDCs
• Middle East and North Africa: Yemen (EP), selected countries with LDC status

Source: gov.uk/guidance/developing-countries-trading-scheme.

DCTS rules of origin — conditions for goods to qualify

For goods to qualify for DCTS preferences, they must satisfy the DCTS Rules of Origin — a set of conditions specifying the extent to which goods must be produced or processed in a DCTS country in order to be considered as 'originating' from that country. These rules differ according to the HS code and preference tier (EP, SP, DCTS Lite). The DCTS rules of origin are set out in the DCTS Rules of Origin Statutory Instrument published by the UK Government. This article reflects the legal position as at 2026-06-06. Please consult a customs broker before taking action.

Criteria for 'originating goods' under DCTS

Goods are considered 'originating' from a given DCTS country if they meet one of the following criteria:

1. Fully obtained: the goods were entirely grown, extracted or produced in the DCTS country — applicable mainly to natural products (agricultural, mineral, fish). Example: cotton harvested in Bangladesh = fully obtained in Bangladesh.
2. Sufficient processing: the goods were produced from materials from various countries, but as a result of processing in the DCTS country their character changed — meeting the rules specified for the relevant HS code. Rules may require, for example, a change of tariff classification or the achievement of a specified value added.

For EP (LDC) countries, the rules of origin are generally more liberal (regional cumulation, a higher permitted share of non-originating materials) than for SP and DCTS Lite countries.

Regional and bilateral cumulation under DCTS

DCTS provides for a cumulation mechanism, which allows materials or processing from other DCTS countries or from the UK to be counted towards 'origin':

• Bilateral cumulation: materials originating in the UK may be treated as domestic materials when calculating sufficient processing in a DCTS country.
• Regional cumulation: within certain regional groups (e.g. ASEAN, SADC), materials from one DCTS country may be counted as 'originating' in another DCTS country within the same group.

Cumulation extends the possibilities for producers in DCTS countries to obtain 'originating' status, particularly for goods with complex supply chains. Detailed cumulation rules are set out in the DCTS Rules of Origin Statutory Instrument, available on legislation.gov.uk.

Proof of origin required under DCTS

A UK importer claiming DCTS preferences must hold one of the following documents confirming the origin of the goods:

• Statement on Origin: a declaration made by the exporter on the invoice or another commercial document — may be made by any exporter for consignments with a value below £6,000; for consignments above that value, the exporter must be registered in the REX system. Details: REX statement on origin of goods.
• REX Declaration: a declaration made by an exporter registered in the REX (Registered Exporter System) — required for consignments above £6,000. REX is a system managed by the country of export; the exporter registers with their national customs authority and obtains a REX number entitling them to make REX declarations for DCTS preferences.

The importer is responsible for retaining the proof of origin and making it available to HMRC on request. Source: gov.uk/guidance/developing-countries-trading-scheme.

How to claim DCTS preferences on a CDS import declaration

To claim DCTS preferences when importing goods into the UK, the importer or their customs broker must correctly annotate the import declaration in the CDS (Customs Declaration Service). The step-by-step process for claiming DCTS preferences is described below. Details about the CDS system itself are covered in the article CDS import declaration UK. This article reflects the legal position as at 2026-06-06. Please consult a customs broker before taking action.

Step by step — how to annotate a DCTS declaration in CDS

1. Eligibility check: Before importing, check in the UK Trade Tariff (trade-tariff.service.gov.uk) whether the goods with a given HS code from a given DCTS country qualify for preferences and what the preferential rate is. Enter the commodity code and country of origin — the system will show available DCTS preferences.
2. Obtaining proof of origin: Contact the exporter and confirm they have issued a Statement on Origin or REX declaration on the commercial documents. The importer should hold this document before submitting the declaration.
3. Completing the CDS declaration: On the CDS Import Declaration, the importer or customs broker indicates:
   • The preference code — the appropriate code for DCTS (the code depends on the tier: EP, SP or DCTS Lite)
   • The country of origin — the DCTS country from which the goods originate
   • The document type confirming origin (Document Code) — Statement on Origin or REX
   • The exporter's REX number (where applicable)
4. Importer obligations: The importer declares that they hold proof of origin and that the information is accurate. In the event of an HMRC audit, the importer must produce the documents. If HMRC disputes the origin, the importer may be required to pay the full duty.

To use the CDS system, the importer must hold an EORI (Economic Operators Registration and Identification) number. Details in the article: EORI number for preferential imports. Source: gov.uk/guidance/developing-countries-trading-scheme.

Checking the DCTS rate in the UK Trade Tariff

The UK Trade Tariff (trade-tariff.service.gov.uk) is the official HMRC online duty rate calculator. To check the DCTS rate:

1. Go to trade-tariff.service.gov.uk and select "Import into the UK".
2. Enter the 10-digit commodity code or search the tariff by keyword.
3. On the commodity page, select the country of origin from the list — the system will display:
   • The standard MFN (Most Favoured Nation) rate
   • The DCTS rate (Enhanced / Standard / Lite) if the country is covered by the scheme
   • Other preferential rates under UK trade agreements
4. Compare the DCTS rate with the standard MFN rate — the difference is the duty saving when the origin conditions are met.

This also applies to preferential duty on imports from the UK — the correct use of preference codes on the declaration is a prerequisite for benefiting from the reduced rate.

UK DCTS and Polish companies importing via the UK

UK DCTS is directed at importers in the United Kingdom, not at EU importers. For Polish companies the situation is more complex — however, they can benefit from DCTS in certain scenarios. Below we explain when DCTS is relevant for a Polish importer and how to approach the topic. This article reflects the legal position as at 2026-06-06. Please consult a customs broker before taking action.

Scenarios for Polish importers — when DCTS is relevant

Polish companies may encounter UK DCTS in the following situations:

1. Direct import from a DCTS country into the UK by a Polish company: A Polish company imports goods (e.g. textiles from Bangladesh) directly into the UK (as a UK importer, e.g. through a branch or as an entity registered for customs purposes in the UK). In this scenario, the Polish company can claim DCTS preferences on the CDS declaration, provided it holds DCTS proof of origin. This requires a UK EORI number and use of CDS — details in the article customs clearance for imports with DCTS preferences.
2. Purchase from a UK distributor who imported from a DCTS country: A Polish company buys goods from a UK distributor. The UK distributor may have benefited from DCTS on the import — the reduced duty may have lowered its costs and resulted in a lower price for the Polish company. The Polish company does not itself benefit from DCTS in this transaction (the UK import has already taken place).
3. Re-export of goods from the UK to Poland: Goods imported from a DCTS country into the UK, then exported to Poland. On import into the UK, the importer may have used DCTS. On import into Poland from the UK (not from the DCTS country), standard EU rates or preferences under the UK–EU trade agreement apply — DCTS does not apply at that stage.

DCTS versus EU GSP — the distinction when importing goods into the EU

An important note for Polish importers: the EU GSP is a separate EU scheme with no connection to UK DCTS. A Polish company importing directly from Bangladesh into Poland can use the EU GSP (under EU rules), whereas the import of the same goods from Bangladesh into the UK is covered by UK DCTS. These are two independent systems — satisfying the rules of origin for one does not guarantee satisfying them for the other. If you are planning imports from Africa, Asia or Latin America, please contact a customs broker to determine which preferences (EU GSP or UK DCTS) are available for the specific route and goods.

Summary of the current official rules

UK DCTS (Developing Countries Trading Scheme), in force since June 2023, is the UK's preferential tariff scheme for imports from more than 65 developing countries. It offers three preference tiers: Enhanced (zero/very low duty for LDCs), Standard (reduced duty for lower-middle income countries) and DCTS Lite (limited preferences). To claim preferences: (1) the goods must originate in a DCTS country and meet the DCTS Rules of Origin; (2) the importer must hold a Statement on Origin or REX declaration from the exporter; (3) the importer must indicate the DCTS preferences on the CDS import declaration. DCTS is NOT a free trade agreement — it is a unilateral UK scheme. Polish companies importing from DCTS countries via the UK can benefit from preferences only as importers in the UK. This article reflects the legal position as at 2026-06-06. Please consult a customs broker before taking action.

FAQ — frequently asked questions

What is UK DCTS and how does it differ from the EU GSP?

UK DCTS (Developing Countries Trading Scheme) is the UK's unilateral preferential tariff scheme for imports of goods from developing countries, launched in June 2023. It replaced the EU GSP (Generalised Scheme of Preferences) that applied in the UK before Brexit. The key difference: DCTS is an autonomous UK scheme — it is not linked to the EU GSP and has its own country list, rules of origin and preferential rates. Source: gov.uk/guidance/developing-countries-trading-scheme.

Which countries are covered by the UK Developing Countries Trading Scheme?

DCTS covers more than 65 developing countries, divided into three tiers: Enhanced Preferences (EP) — least developed countries (LDC), e.g. Bangladesh, Ethiopia, Tanzania; Standard Preferences (SP) — lower-middle income countries, e.g. Cameroon, Ghana, Pakistan; DCTS Lite — selected countries with limited preferences, e.g. India, Nigeria. The current full country list is published at gov.uk/guidance/developing-countries-trading-scheme. Source: gov.uk/guidance/developing-countries-trading-scheme.

How do I check the DCTS duty rate for a specific commodity in the UK Trade Tariff?

To check the DCTS rate for a specific commodity: (1) Go to trade-tariff.service.gov.uk and search for the HS code; (2) In the duty rates section, select DCTS preferences and the appropriate country of origin; (3) The rate will be shown as DCTS Enhanced, DCTS Standard or DCTS Lite depending on the exporting country's classification. Zero or very low rates apply to goods from EP (LDC) countries. Source: gov.uk/guidance/developing-countries-trading-scheme.

What are the rules of origin under UK DCTS — what does "originating goods" mean?

For goods to qualify for DCTS preferences, they must be considered "originating" from the relevant DCTS country. This means: (1) the goods were wholly obtained in that country (fully obtained); or (2) they underwent sufficient processing in accordance with the DCTS Rules of Origin — which differ by HS code. Proof of origin: a Statement on Origin from the exporter, or a REX declaration (Registered Exporter System). Detailed rules at gov.uk/guidance/developing-countries-trading-scheme. Source: gov.uk/guidance/developing-countries-trading-scheme.

Can a Polish company importing from African countries via the UK benefit from DCTS preferences?

Not automatically. DCTS preferences are granted to an importer in the UK on goods imported directly from a DCTS country. If a Polish company buys goods from a UK distributor who previously imported them from Africa, the Polish company does not benefit from DCTS on that purchase — because the UK import has already taken place. The DCTS preference may, however, reduce the UK distributor's import costs, which could translate into a lower purchase price for the Polish company. If the Polish company itself imports goods directly from Bangladesh or another DCTS country into the UK with a view to onward sale or processing, it can claim DCTS preferences on that declaration. Source: gov.uk/guidance/developing-countries-trading-scheme.

Official sources

• UK Developing Countries Trading Scheme — gov.uk HMRC — GOV.UK
• DCTS product lists and country schedules — gov.uk — GOV.UK
• UK Global Online Tariff — trade-tariff.service.gov.uk — HMRC Trade Tariff