UK introduces improvements to rules of origin under DCTS

UK introduces improvements to rules of origin under DCTS



The United Kingdom recently introduced improvements to the rules of origin under the Developing Countries Trading Scheme (DCTS).

These changes are designed to make it easier for eligible developing countries to trade with the UK by creating new regional cumulation groups for Africa and Asia; and make rules of origin for garment exports more flexible for enhanced preference tier countries.

The UK has introduced improvements to the rules of origin under the Developing Countries Trading Scheme.
These changes will make it easier for eligible developing countries to trade with the UK by creating new regional cumulation groups for Africa and Asia; and make rules of origin for garment exports more flexible for 16 enhanced preference tier countries.

Businesses in the United Kingdom and in DCTS partner countries can now benefit from the changes, which apply to goods imported to the former under the DCTS from January 1, 2026, a UK government release said.

The scheme was introduced on June 19, 2023, granting preferential market access to 65 developing countries.

For the first time, Africa has a DCTS regional cumulation group and the two Asia groups have been merged and expanded. This means businesses in DCTS countries can source inputs from a wider range of countries in the region, strengthening regional trade, the release said.

Comprehensive Preference tier countries, or least developed countries, in the Africa Regional Cumulation Group can now more easily source input from Association Agreement countries with the removal of case-by-case applications.

Enhanced preference countries in the Africa Regional Cumulation Group can source input from all African DCTS, Economic Partnership Agreement and Association Agreement countries.

Six additional countries—Afghanistan, Uzbekistan, Kyrgyzstan, Tajikistan, Mongolia and Timor-Leste—are now part of the DCTS Asia regional cumulation group for the first time.

All countries in the Asia Regional Cumulation Group can now benefit from one-way cumulation with Vietnam.

Sixteen Enhanced Preference tier countries will now be able to benefit from more flexible rules of origin on garments. Key changes include the ability to source up to cent per cent of inputs (depending on the garment) from other countries for further manufacture; fewer mandatory processing steps like dyeing, printing or bleaching; and only one significant manufacturing process must take place in a DCTS country.

These changes mean Enhanced Preference tier countries now follow the same product-specific rules for garments under Chapters 61 and 62 as Comprehensive Preference tier countries. This will also benefit LDCs that are due to graduate to the Enhanced Preference tier.

Fibre2Fashion (DS)



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