New Customs Scheme to reduce import duty - CILT(UK)
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New Customs Scheme to reduce import duty

27 June 2023/Categories: Freight Forwarding, Logistics & Supply Chain, Operations Management, Institute News, Membership


The UK Generalised Scheme of Preferences (GSP) has been replaced from 19th June 2023 by the Developing Countries Trading Scheme (DCTS).  The EU GSP scheme is unchanged. 

The DCTS is a simpler and more generous preferential trading scheme which has been designed to boost trade with developing countries in order to support their development.

The DCTS cuts tariffs, removes conditions and simplifies trading rules for developing countries and benefits UK businesses and consumers by reducing the import cost of thousands of products from around the globe.

The DCTS applies to 65 countries that fall under one of the following categories:

  1. least developed countries (LDCs) as defined by the United Nations
  2. low income and lower middle-income countries as defined by the World Bank

 

This link lists the countries and the duty reductions that they receive under the scheme – (this is not the same as the GSP Countries/Benefits)

https://www.gov.uk/guidance/preference-tiers-under-the-developing-countries-trading-scheme#find-out-your-country-preference-tier

 

Eligible products listings and information on their DCTS duty reductions can be found here

https://www.gov.uk/guidance/identify-tariffs-by-product-under-the-developing-countries-trading-scheme

 

Form A is used to give proof of origin for goods being imported from countries covered by the Developing Countries Trading Scheme.

 

Detailed instructions (box by box) for the completion of Form A can be found here: 

https://www.gov.uk/guidance/completing-generalised-scheme-of-preferences-form-a?utm_medium=email&utm_campaign=govuk-notifications-topic&utm_source=0ada6ca7-ba57-45a4-9383-2ceb33bffa67&utm_content=immediately

 

There is no transition period between GSP and DCTS, however the following questions and answers provide guidance for goods in transit:

 

What evidence/documents will be required for goods to be regarded as originating from a qualifying DCTS country?

The proofs of origin remain the same as for UK GSP – so an origin declaration (referring to DCTS instead of GSP) and Form A, both completed by the exporter in the DCTS beneficiary country.

 

Will the UK have a UK version of the Form A for the DCTS?

No, we will retain the standard UNCTAD trade preference Form A for the DCTS to avoid the need for businesses to complete different documentation for the UK. We are speaking with UNCTAD to update the form to reference the DCTS in the footnotes.

You can find a template for the Form A on this link

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/948751/Certificate_of_origin_-_FORM_A.pdf

 

Will there be a grace period to use UK GSP documents?

For goods that qualify for a preferential duty rate under DCTS, the claim to preference can be made using a UKGSP proof of origin, provided it was issued on or before 31 December 2023.

 

What about products already in or entering a customs warehouse

For goods that are currently in a customs warehouse, or enter a customs warehouse after 19 June 2023, a claim to DCTS preference can be made on release to free circulation using a UK GSP proof of origin, provided it was issued on or before 31 December 2023.

 

What about claims to preference made retrospectively?

Retrospective claims to DCTS preference can be made using a UK GSP proof of origin, provided it was issued on or before 31 December 2023.

 

Claiming DCTS on the Customs Declaration Service (CDS)

Your CDS customs declaration to free circulation should include the following current data elements (DE):

  1. DE 2/3 – Either 9001 (origin declaration) or N865 (Form A)
  2. DE 4/17 – A code from the 200 series of preference codes

Any questions regarding DCTS please contact the Customs and International Trade Compliance Forum.

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