If you import from Bangladesh, Pakistan, Cambodia, Sri Lanka or dozens of other developing countries, the Developing Countries Trading Scheme (DCTS) could be saving you thousands in duty. Or, if your paperwork isn't right, costing you money you don't need to pay.
What is the DCTS?
The DCTS is the UK's own trade preference scheme. It replaced the old Generalised Scheme of Preferences in June 2023. It gives lower or zero import duty on goods from around 65 developing countries, to help them trade with the UK.
Unlike a trade agreement, it's one-way: the UK cuts its tariffs, and the developing country doesn't have to cut its tariffs in return.
The three tiers
| Tier | Who's in it | What it gives |
|---|---|---|
| Comprehensive Preferences | Least Developed Countries, e.g. Bangladesh, Cambodia, Ethiopia | Duty-free on almost everything except arms |
| Enhanced Preferences | Low and lower-middle income countries, e.g. Pakistan | Duty-free on most products (around 92%) |
| Standard Preferences | Other eligible countries | Reduced or zero duty on many products |
Bangladesh and LDC graduation
Bangladesh is due to graduate from Least Developed Country status. The UK has confirmed it will keep Comprehensive Preferences for three years after graduation, then move to Enhanced Preferences. Read our guide to duty on Bangladesh imports for details.
Rules of origin
The DCTS only applies to goods that originate in the beneficiary country, meaning enough of the work was done there. The rules are set product by product.
The DCTS rules are more generous than the old scheme. Some examples:
- Garments: the old "double transformation" rule, which required fabric to be woven in the country, has been relaxed for many countries. More garments now qualify.
- Cumulation: materials from other DCTS countries, and from some other partners, can count towards origin.
Proof of origin
To claim the lower rate, you need valid proof of origin. Under the DCTS this is usually a statement on origin made out by the exporter on the invoice or another commercial document. For larger consignments, the exporter must be registered on the Registered Exporter (REX) system.
The statement must use the correct wording. A missing or wrongly worded statement means the goods pay full duty.
How to claim it
- Check the commodity code, and confirm the preferential rate for the country on the UK Trade Tariff.
- Check the goods meet the rules of origin for that code.
- Make sure your supplier provides a correct statement on origin.
- Claim the preference on the import declaration. Your customs agent enters the right preference code.
- Keep the records. HMRC can check origin claims after the goods are cleared.
Common mistakes
- Assuming everything from a DCTS country qualifies. It doesn't: origin rules apply.
- Accepting a statement on origin with the wrong wording, or none at all
- Shipping via a third country and breaking the direct transport rules
- Not claiming the preference at all, and paying duty you didn't need to
Our Chittagong team checks origin paperwork before goods leave Bangladesh, and our Essex team claims the preference on every eligible declaration. Talk to us about your goods.
General information, correct as of October 2026, not legal or tax advice.