HM Revenue and Customs (HMRC) has updated its guide on how to pay less Customs Duty on goods from a country with a UK trade agreement to add details of the Developing Countries Trading Scheme (DCTS).
Available HERE, the guide explains how the DCTS cuts tariffs, removes conditions and simplifies trading rules with regard to 65 developing countries.
It replaced the UK’s Generalised Scheme of Preferences (GSP) and is intended to be a simpler and more generous preferential trading scheme which has been designed to boost trade with developing countries in order to support their development.
A wide variety of products benefit from lower or zero tariffs on their products. The DCTS also enables UK businesses to access thousands of products from around the world at lower prices, reducing costs for UK consumers.
A list of eligible countries, which include least developed countries (LDCs) as defined by the United Nations and low income and lower middle-income countries as defined by the World Bank, can be found HERE.
The updated guide advises on how to check that goods are covered by a trade agreement, that they meet the rules of origin and what different types of proof of origin are required.
HRMC emphasises that anyone making an import declaration which includes a preferential claim must keep the records including a copy of the declaration and proof that the goods can be treated as originating in the country for which a tariff preference has been claimed.
