Developing Countries Trading Scheme
The Developing Countries Trading Scheme ("DCTS") is a system of graduated tariffs on goods imported to the United Kingdom from many countries of the developing world, including the Least developed countries.
The legal basis of the DCTS is in Schedule 3 of the Trade Preference Scheme (Developing Countries Trading Scheme) Regulations 2023. DCTS replaced the former Generalised Scheme of Preferences (GSP) with effect from 19 June 2023, when all previous goods graduation notices ceased to apply.[1]
The DCTS removes or reduces tariffs and simplifies trading rules.[2]
The standard preferences rate is suspended on "standard preferences imports" from 19 June 2023 until 31 December 2025, a period which may be extended.[1]
Goods graduation
Goods graduation is defined as the suspension of preferential rates of customs duty on imports, which are thus more competitive without trade preferences.[1]
Countries affected
The DCTS applies to 65 developing countries which have a population of 3.3 billion people, of whom half are in Africa.[2]
The countries whose goods are affected are listed in the Standard Preferences framework of the DCTS.[1]
Suspension of the scheme can be applied to goods from these countries, and at the outset some goods coming from India and Indonesia were so excluded.[1]
Notes
- ^ a b c d e Developing Countries Trading Scheme (DCTS): goods graduation from 19 June 2023, 19 June 2023, accessed 19 June 2023
- ^ a b "Britain launches preferential trade scheme with developing countries", Reuters, 19 June 2023