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Bangladesh keeps duty-free UK access for three years after LDC graduation

The UK has confirmed Bangladesh will keep its current duty-free access for three years after leaving LDC status, with garment rules of origin relaxed.

· Westconn Logistics

UK importers buying from Bangladesh have had good news on duty. The UK has confirmed that Bangladesh will keep its existing duty-free access to the UK market for three years after it graduates from the UN's list of Least Developed Countries.

What's been announced

  • Three-year transition. Bangladesh stays in the Comprehensive Preferences tier of the UK's Developing Countries Trading Scheme (DCTS) for three years after graduation, so most goods remain duty-free.
  • Then Enhanced Preferences. After the transition, Bangladesh moves to the DCTS Enhanced Preferences tier, where around 92% of goods are expected to stay duty-free.
  • Easier rules of origin for garments. The UK has dropped the "double transformation" requirement for garments, so manufacturers can use imported fabric and still qualify for the preferential rate.

What it means for importers

For most of our customers bringing in garments, knitwear and home textiles, nothing changes in the short term: goods that come in duty-free today should keep doing so through the transition, provided the proof of origin is in order.

The relaxed garment rules could make it easier for more products to qualify. And if any of your lines might fall in the 8% that won't stay duty-free under Enhanced Preferences, now is the time to check your commodity codes, not the week the rules change.

How we can help

Our Chittagong team checks proof-of-origin paperwork before goods leave Bangladesh, and our Essex customs team can review your commodity codes against the new tiers. Read our guide to duty and VAT on Bangladesh imports or get in touch.

Source: reporting in The Financial Express (Dhaka), 20 August 2026, on correspondence from the UK government.

Frequently asked questions

Will goods from Bangladesh still be duty-free in the UK?

Yes. The UK has confirmed Bangladesh keeps its current duty-free access under the Developing Countries Trading Scheme for three years after it graduates from Least Developed Country status.

What happens after the three-year transition?

Bangladesh moves to the DCTS Enhanced Preferences tier, where around 92% of goods are expected to remain duty-free.

Do I still need proof of origin?

Yes. The zero rate only applies to goods that meet the rules of origin and come with valid proof of origin from the exporter.

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