New tariff scheme for imports from developing countries to go live on Monday – and other updates

Thu 15 Jun 2023
Posted by: William Barns-Graham
Trade News

Customs updates

A new set of tariffs for imports from developing countries into the UK will enter force on Monday (19 June).

The Developing Countries Trading Scheme (DCTS) replaces the UK Generalised System of Preferences – the continuity system that was put in place following the country’s departure from the EU.

The government has issued an FAQ document to support traders prepare for the requirements that will be introduced as part of the new scheme, including those relating to the documentary evidence that needs to be provided to claim lower duty rates on imports under the scheme.

Proof of origin

The government has advised that the proof of origin documents required under UK GSP will continue to be needed under DCTS.

It explains that this means that “an origin declaration (referring to DCTS instead of GSP) and Form A, both completed by the exporter in the DCTS beneficiary country” will need to be provided.

The UK will continue to use UNCTAD’s ‘Form A’ document for preferential tariffs.

Product specific rules

Anna Doherty, senior trade and customs specialist at the Institute of Export & International Trade (IOE&IT), recently advised traders using the scheme that they will need to understand the updated product specific rules (PSR).

“Traders currently importing goods from GSP countries with preference should familiarise themselves with the PST schedule for the least developed countries to check for any changes,” she wrote on LinkedIn. “The government has simplified and liberalised PSR for LDC and extended the cumulation.”

Business members at IOE&IT are also advised to use the International Trade Technical Helpline if they have any queries, while traders in general should review the IOE&IT’s training course on rules of origin to learn more about the processes involved in claiming preferential tariffs under schemes like DCTS.

Other customs updates

HMRC’s Joint Customs Consultative Committee (JCCC) has also written to industry to update stakeholders about multiple other key changes and upcoming events in UK customs.

The IOE&IT Daily Update has summarised five of these updates below:

  1. HMRC has launched a new public consultation on the introduction of new voluntary standards for customs intermediaries – a key part of the package of customs measures announced in this year’s Spring Budget
    • Launched on 5 June, the consultation runs for 12 weeks until 30 August and can be viewed in full here
  2. DEFRA is looking to save wine importers £180m through proposed changes to retained EU laws
    • The department is asking for your views on the plans and you have until 21 July to provide input here
  3. Deloitte, working alongside IBM, has been announced as the technical partner delivering the new UK Single Trade Window
  4. Barclays is carrying out planned maintenance on its Faster Payments service on Saturday 24 July, 2.45-3.30am, which could impact some CDS users processing declarations at this time
  5. The JCCC secretariat has shared new guidance about changes to CDS in release 4.1.0 which come into effect on 24 June