Most goods made in Bangladesh come into the UK with no import duty at all. That is worth a lot — on garments, the normal UK rate is often 12% — but only if the paperwork is right. Here is how it works.
The Developing Countries Trading Scheme
The UK's Developing Countries Trading Scheme (DCTS) gives lower or zero tariffs to goods from developing countries. Bangladesh is in the most generous tier, the Comprehensive Preferences tier, which means duty-free access for almost everything it exports to the UK.
The catch: rules of origin
The zero rate only applies if the goods count as originating in Bangladesh under the scheme's rules of origin — broadly, enough of the manufacturing has to happen there. The UK has relaxed these rules for garments: the old "double transformation" requirement has gone, so manufacturers have more freedom to use imported fabric.
You also need proof of origin, normally a statement on origin made out by the exporter on the invoice or another commercial document. Without valid proof, the goods pay the full rate. This is one of the things our Chittagong team checks before your shipment leaves.
Import VAT still applies
Duty-free does not mean tax-free. Import VAT is charged on the value of the goods plus freight and insurance, usually at 20%. If you are VAT registered you can use postponed VAT accounting, which means you declare and reclaim the VAT on the same return instead of paying it at the border.
What happens after LDC graduation
Bangladesh is due to graduate from the UN's list of Least Developed Countries. The UK has said Bangladesh will keep its current duty-free access for three years after graduation. After that it moves to the DCTS Enhanced Preferences tier, where around 92% of goods are expected to stay duty-free.
If you import goods that might fall in the remaining 8%, it is worth checking your commodity codes now so there are no surprises later.
Checklist for your next shipment
- Correct HS commodity code for each product line
- Statement on origin from the exporter, worded correctly
- Commercial invoice and packing list that match
- Your GB EORI number
- VAT registration, if you want to postpone import VAT
Not sure where your goods stand? Get in touch and our customs team will check the codes and origin paperwork with you.
This guide is general information, correct as of October 2026, not legal or tax advice. Rules change — check GOV.UK or ask us before relying on it.