1. Methodology note for preference utilisation of UK trade in goods

1.1 Summary of the official statistics series

This series provides statistics on the UK’s utilisation of tariff preferences for imports and exports of goods under preferential trade agreements (PTAs), including trade in goods between Great Britain and the European Union under the EU-UK Trade and Cooperation Agreement (TCA), covering the period after the UK left the European Union. It also includes UK imports under the Generalised Scheme of Preferences (GSP^{[footnote 1]}) and will include the Developing Countries Trading Scheme (DCTS) which entered into force on 19 June 2023 and replaced the UK’s Generalised Scheme of Preferences (GSP).

Preference Utilisation Rates (PURs) measure the extent to which tariff preferences provided by trade agreements are being used, in goods where preferential tariff rates are available and lower than the Most Favoured Nation (MFN) rate^{[footnote 2]}. A PUR is normally presented as a percentage and reflects the value of goods traded under tariff preferences, as a share of the total value of goods eligible for preferences. That is, to what extent a preferential tariff is being used. UK goods can be imported or exported under different tariff regimes depending on the product and the country of origin.

The main tariff regime is the Most Favoured Nation (MFN) which members of the World Trade Organization (WTO) impose on imports from other members of the WTO, unless the country or territory is part of a preferential trade agreement. There are other regimes that provide reduced tariff rates for a specific country of origin (or group of countries and territories), for all or part of their products. One example of a preferential tariff for a group of countries or territories is the preferential trade agreements (PTAs). The PTAs include the Trade and Cooperation Agreement (TCA) with the EU, as well as the free trade agreements (FTAs), economic partnership agreements (EPAs) and association agreements with the non-EU countries or territories.

Information on PURs may inform discussions between the UK and trading partners on where to take action, for example, reinforce communication efforts to raise awareness among importers of the partner country or territory, produce guidance, raise problematic practices by customs administrations.

1.2 Users of this release

There is public, academic and industry interest in these figures. By releasing these figures in a regular managed series, this demonstrates the government’s public commitment and ambition on transparency and cooperation.

The data reported in this statistical series can help traders to maximise the benefits of the free trade agreements (FTA). The data can be proactively used to raise awareness and publicise what government and trade agreements can do to support businesses. This data can be used with traders to offer tailored UK export support, by identifying which goods sectors have sub-optimal preference utilisation.

PUR data is necessary to formulate an evidence-based approach to improving FTA outcomes and informing future policy strategies. This data supports implementation activity, showing where UK exporter strengths are, or where more facilitative rules of origin (RoO) could be warranted.

1.3 Import preference utilisation data sources and limitations

The underlying data for the imports into the UK preference utilisation figures were sourced from HM Revenue and Custom’s (HMRC) UK goods imports by tariff regime at 8-digit Combined Nomenclature (CN8) product level, by trading partner. This data is provided on a country of origin basis^{[footnote 3]} and therefore the values by partner will differ from those published in the Overseas Trade Statistics (OTS) by country of dispatch. As these data are based on customs declarations, they also exclude imports from the EU into Northern Ireland which are still collected using the Intrastat survey.

The data included in this publication has surpassed the HMRC scheduled revisions policy. That is, the data has surpassed the 18-month provisional period post publication. However, figures should be used with caution as they could be subject to future, unscheduled revisions.

1.4 Export preference utilisation data sources and limitations

The underlying preference utilisation data for the UK exports to the EU were sourced from Eurostat at CN8 level, by partner, October 2024^{[footnote 4]} (for 2021 and 2022 releases). Eurostat data excludes trade between Northern Ireland and the EU, as this remains part of the Customs Union and so is not applicable for preference utilisation. The UK export PUR figures are based on administrative data reported by the EU importing member state.

The underlying preference utilisation data for UK exports to non-EU partners is collected by customs authorities of the respective trading partner. These were acquired by the UK through data exchanges conducted by the UK with trade agreement partners (see the following table for a list of these partners). Consequently, the scope on the export side is limited to those partners who have collected and provided such data. This data is provided on a country of origin basis and therefore the values by country or territory may differ from internationally published data.

The data on preference utilisation is based on import data collected and processed by different parties. As every data source is different, there could be differences in collection methods, impacting on the consistency and accuracy of the individual country export PUR.

Partner country	Data source (for 2021 and 2022)	Years covered
Canada	Global Affairs Canada, Government of Canada, country of origin basis, September 2023	2021, 2022
Chile	Chilean National Customs Service, country of origin basis, September 2024	2021, 2022
Costa Rica	General Directorate of Customs, November 2023	2021, 2022
Egypt	Egypt Ministry of Trade and Industry, January 2024	2021
El Salvador	Ministry of Economy of El Salvador with information from the General Directorate of Customs, November 2023	2021, 2022
Guatemala	Ministerio de Economía de Guatemala, November 2023	2021, 2022
Honduras	Customs Administration of Honduras, November 2023	2021, 2022
Iceland	Tollakerfi (Customs system), October 2023	2022
Japan	Ministry of Foreign Affairs of Japan, October 2023	2021, 2022
Kosovo	Kosovo Customs, November 2024	2021, 2022
Nicaragua	Statistics Office (MIFIC), based on information provided by the General Directorate of Customs Services (DGA), November 2023	2021, 2022
Norway	Norwegian customs declaration system (TVINN), September 2024	2021, 2022
Panama	National Customs Authority, November 2023	2021, 2022
South Korea	Korea Customs Service, January 2024	2021, 2022
Serbia	Customs Administration of the Republic of Serbia, country of origin basis, December 2024	2021, 2022
Singapore	Singapore Ministry of Trade and Industry, May 2024	2021, 2022
Switzerland and Liechtenstein[footnote 5]	Switzerland State Secretariat for Economic Affairs, country of origin basis, June 2023	2021, 2022
Turkey	Republic of Türkiye Ministry of Trade, country of origin basis, October 2023	2021, 2022
Ukraine	The State Customs Service of Ukraine, based on country of origin basis, November 2023	2021, 2022
Vietnam	Viet Nam’s General Department of Customs, country of origin basis, June 2024	2021, 2022

1.5 UK PUR calculation methodology

Preference Utilisation Rates (PURs) measure the extent to which tariff preferences provided by a particular trade agreement are being used. The UK PUR methodology is as follows: a PUR is calculated by dividing the value of imports entering under preferences by the value of the imports eligible for preferences – this is then multiplied by 100 to obtain a percentage.

The value of preferential imports (the numerator) is the value of those preference-eligible goods imports where a preference was ultimately used.

Imports are considered eligible for a preference (the denominator) if there is one or more preferential tariffs available for that good from the specified partner country in the month of reporting, and that preferential rate is lower than the MFN tariff that would otherwise apply. Imports are excluded from this eligibility total if they entered under conditions where a preferential tariff wouldn’t reasonably be used – this includes: 

• imports entering under special processing procedures that would permit goods to enter duty-free or under a reduced rate (inward or outward processing)
• imports where a preference is eligible but entered duty free under MFN terms due to measures such as suspensions or non-preferential tariff rate quotas (TRQs)^{[footnote 6]}
• imports where the regime under which the good entered the UK is unknown (for example, due to insufficient information provided on the customs declaration)

Once the value of goods eligible for a preference has been established, the value of preferential imports (the numerator) is simply the value of those preference-eligible goods imports where a preference was ultimately used. Table 1 shows how this calculation is made possible using the HMRC PUR data items.

Table 1: How HMRC UK imports by regime data is applied to the PUR calculation 

Stat regime	Eligibility	Use	Included in PUR denominator	Included in PUR numerator
Normal (1)	MFN Only	MFN zero	No	No
Normal (1)	MFN Only	MFN non-zero	No	No
Normal (1)	MFN Only	Unknown	No	No
Normal (1)	GSP	MFN zero	No	No
Normal (1)	GSP	MFN non-zero	Yes	No
Normal (1)	GSP	GSP zero	Yes	Yes
Normal (1)	GSP	GSP non-zero	Yes	Yes
Normal (1)	GSP	Unknown	No	No
Normal (1)	PTA	MFN zero	No	No
Normal (1)	PTA	MFN non-zero	Yes	No
Normal (1)	PTA	PTA zero	Yes	Yes
Normal (1)	PTA	PTA non-zero	Yes	Yes
Normal (1)	PTA	Unknown	No	No
Normal (1)	PTA & GSP	MFN zero	No	No
Normal (1)	PTA & GSP	MFN non-zero	Yes	No
Normal (1)	PTA & GSP	GSP zero	Yes	Yes
Normal (1)	PTA & GSP	GSP non-zero	Yes	Yes
Normal (1)	PTA & GSP	PTA zero	Yes	Yes
Normal (1)	PTA & GSP	PTA non-zero	Yes	Yes
Normal (1)	Unknown	Unknown	No	No
Inward Processing (2)	All	All	No	No
Outward Processing (3)	All	All	No	No
Processing not recorded (9)	All	All	No	No

For definitions of tariff regimes and column headings, see section ‘3. Glossary’.

TRQs are considered in this analysis alongside standard tariffs. A tariff rate quota is deemed to exist if a quota measure is available for a product/country or territory (group) combination and that quota has a non-zero usage balance. Goods imported within the quota limit will benefit from a lower tariff rate. Once the quota is exhausted, the normal, higher rate will be applied. It is assumed that any quota still available on the first day of the month will be available for the rest of that month.

If a commodity has an MFN zero import duty, then the use is always considered as MFN zero. In addition, if an import is not eligible for the tariff regime indicated by the preference data collected from the customs declaration, it will be considered as imported under the MFN regime.

Under UK PUR calculation agreed methodology, imports should be considered eligible for preferences if a preferential tariff is available, and the rate is lower than the applied MFN tariff available in that time period. While this principle is upheld in the HMRC dataset in most cases, there are a few exceptions where HMRC classify imports as preference-eligible where the MFN rate available is equal to the preferential rate, in those cases where both rates are greater than zero. Where 10-digit Combined Nomenclature (CN10) product level data are available, that is, the Tariff-Line level, these lines can be corrected to provide a more accurate calculation.

1.6 Tariff-free calculation methodology

The tariff-free percentage measures the extent to which imports either entered under MFN Zero, Preference zero or GSP zero; these 3 categories combined are the numerator. This is then divided by the total value of imports (the denominator) and multiplied by 100 to obtain a percentage. The UK tariff-free only method only includes imports under the ‘normal stats regime’. Any imports under ‘Inward processing’, ‘Outward processing’, or ‘processing not recorded’ are not included in the numerator, or the denominator.

1.7 Imports by preference data 2021

While the methodology for 2021 data is the same as for the Imports by Preference data series, the trade data used is different.

In 2021, the use of Staged Customs Controls (SSCs) allowed customs declarations to be reported up to 175 days after the date of import for imports of non-controlled goods from the EU to GB. Full customs controls were introduced in January 2022. This may have resulted in some imports in the second half of 2021 recorded via the Intrastat Survey appearing again on customs declarations in the first half of 2022. As a result, 2021 data is missing any trade value that was not collected on a customs declaration. As such, caution is needed when making comparisons between years.

Further information on the SCC is available in this Office for National Statistics article.

Further information about the UK import preference utilisation data is published in HMRC’s methodology statement (Annex D).

1.8 Reporting and rounding policy

Missing values are excluded from all calculations of percentages. Figures rounded to 1 decimal place for percentages, and for values to nearest £1,000,000 in the commentary and aggregate tables, and to the nearest £ in the supplementary tables. All figures are independently rounded, and therefore some percentages and totals may not add up due to rounding.

Values based on UK export preference utilisation data received from trading partners has been converted from the source currency into GBP using the Bank of England annual average spot exchange rate for the given year.

1.9 Release schedule

This release of statistics relating to preference utilisation of UK trade in goods in calendar years 2021 and 2022, was first published on 13 February 2025. Subsequent updates will be on an annual basis covering the next calendar year. The publication dates will be pre-announced at least 4 weeks in advance on the GOV.UK release calendar.

1.10 Revisions policy

DBT complies with the United Kingdom Statistics Authority (UKSA) Code of Practice for Official Statistics. This has set out the revision policy for this release and will notify users when revisions are made to statistics.

The revision policy is used to inform the reasons on why particular data, output, or publication need to be revised. These revisions are in line with the T3.9 of the Code of Practice. The revisions can take form of scheduled and unscheduled revisions.

Import data from HMRC’s Overseas Trade Statistics, are subject to the revision policy of that data collection. The release of the import PURs will always be based on data following the last scheduled revision of the OTS data, and therefore only subject to unscheduled revisions.

These datasets are subject to full replacement for each release, including new revisions made since the last release. On occasions, previously published data will need to be revised due to changes to source data or correcting of errors. These will be made at the time of the next release. Where a large revision has taken place reasons will be provided. You will need to take this into account when using this data.

2. Background quality report

2.1 Data quality summary

The source data for UK import data by preference is HMRC’s Overseas Trade Statistics (OTS) series and has undergone all of the rigorous quality assurance processes of the Official Statistic series. The OTS data is based on customs declarations so will not include imports from the EU into Northern Ireland which are still collected using the Intrastat survey.

To provide assurances on the quality of the export PUR data:

1. Technical discussions are held with trading partners where the UK PUR methodology is presented with the data specification requirements. This is important for consistency and comparability across all countries or territories and the UK import PUR calculation.
2. After receiving the data at tariff-line level from the partner country, DBT analysts conduct extensive quality assurance checks, for example, check for missing values or major outliers, validate eligibility at the commodity code level. Tariff schedules are checked against the official tariff data sources from the WTO Consolidated Tariff Schedules Database.
3. Any issues are raised with trading partner officials to be resolved.
4. The data is cleansed, processed and amended to meet the UK methodology.

If there are outstanding issues, or major quality concerns, the data will not be published until the issues are resolved.

2.2 Data quality of data sources

For the UK import data, see HMRC’s Overseas Trade Statistics methodology and quality report.

For export data, this is obtained from partners and varies in terms of detail, completeness and quality. Data may not be available at tariff-line level, or is missing, and the trade flow values do not match UK trade figures due to issues on trade asymmetries. However, we undertake all the quality assurance checks outlined above to ensure that there are no obvious underlying inaccuracies in the data.

2.3 Relevance

The statistical product is designed to meets user needs in both coverage and content on the topic of UK preference utilisation. Every effort has been taken to provide an accurate and comprehensive picture of UK goods trade with trading partners. The published database file contains a full breakdown of all data items used in the release for all trading partners for UK imports, and for all UK export partners where we have been able to conclude a data exchange with the respective data provider of the trading partner.

2.4 Content

The statistical release will include a data file containing all import and export data used in the publication, as well as the following supplementary tables:

Imports

• Table 1a: Non-EU Import PUR broken down by HS2 chapter
• Table 1b: EU Import PUR broken down by HS2 chapter
• Table 2a: Non-EU Import PUR broken down by partner
• Table 2b: EU Import PUR broken down by partner
• Table 3: Import PUR by GSP partner
• Table 4: Composition of UK goods imports by regime categories

Exports

• Table 1: EU Export PUR broken down by HS2 chapter
• Table 2a: Non-EU Export PUR broken down by partner
• Table 2b: EU Export PUR broken down by partner
• Table 3: Composition of GB goods exports to EU27 partners by regime categories

2.5 Completeness and geographical coverage

The import data by preference is for the UK from all non-EU countries and territories. This import data also covers imports from the British Overseas territories^{[footnote 7]}. The import data by preference from EU member states is for imports into Great Britain only. This data is based on customs declarations so will not include imports from the EU into Northern Ireland which are still collected using the Intrastat survey. It also covers Andorra, San Marino, Ceuta and Melilla (also in scope of the UK-EU TCA) and EU overseas territories^{[footnote 8]}.

The coverage of UK export PURs is dependent on the availability of data from each trading partner. This data is collected by customs authorities of the respective trading partner and is obtained by DBT through data exchanges. The list of trading partners will vary each year and will only be included if the correct data items are provided, and the data is of sufficient quality. We will continue to engage with partners and uphold our efforts to increase our data coverage of export PURs. We will retrospectively include previous years we receive if this is after the publication. We will aim to update and publish these at the next statistical publication date.

2.6 Accuracy

The methodology outlined above explains the calculations applied to the data. For UK imports, HMRC conduct certain quality assurance checks to the data before it is published. For example, if a commodity has an MFN zero import duty, then the use variable is considered as MFN zero, whatever is indicated in the preference data collected from the customs declaration. Similarly, if a commodity has a MFN zero import duty, then the eligibility variable is considered as MFN only, whatever preferential measures are shown in the UK Tariff. In addition, if an import flow (date, product, and origin country or territory) is not eligible for any preferential tariff regime and the preference data collected from the customs declaration records preferential use, it will be considered as imported under the MFN regime.

In addition, for UK imports the calculations do not account for duty drawback claimed after the transaction, for goods not consumed in the UK. The trade picture shown in these statistics may therefore not always perfectly reflect the actual use of the FTA.

Equally there are some manual processes applied to the export data DBT receive at the tariff-line level, and extensive quality assurance checks, for example, check for missing values or major outliers, validate eligibility at the commodity code level. Tariff schedules are checked against the official tariff data sources from the WTO Consolidated Tariff Schedules Database. Some manual changes to the eligibility data fields are made based on the tariff schedules.

2.7 Uncertainty and bias

We seek agreement with partners on final export PUR figures so that we have a single version of the truth. Whilst we do not endorse these trade statistics as the UK official position, due to factors on trade asymmetries, we accept these PUR figures as the best available, that is, no better data source exists on UK export PURs.

As this is all based on different sources, based on the collection methods of each customs authority, it might limit the accuracy and comparability of the output due to possible differences in data and methods applied.

As the data is not reported below HS2 level, there is no suppressions applied.

2.8 Timeliness and punctuality

These statistics are published annually on a preannounced date at 9:30am on GOV.UK. Each release contains an HTML article, supplementary tables, and a data file with a full breakdown of all the data used for the statistics covered in the release. The data lag between receiving the data and publishing the data is to allow time for data processing and quality assurance.

For imports this means waiting for the 18-month provisional period to be over, so all scheduled revisions have taken place. For exports, the revision period will vary by each reporting country. We also need to factor in additional time to acquire the data, and to perform the quality assurance checks listed in section 2.1. We also need to confirm the reported PUR statistics with each partner country before they are published.

2.9 Accessibility and clarity

In line with the government accessibility requirements, the Preference utilisation of UK trade in goods statistics are provided in the HyperText Markup Language (HTML), with all supplementary tables made available in the Open Document Format (ODS), which follows the AA accessibility standards for GOV.UK publications. DBT continues to review the accessibility of this release prior to each publication, ensuring it adheres to the government accessibility requirements. This release is also reviewed by the DBT Digital Team.

If you have any feedback on the accessibility of this release, please contact statistics@businessandtrade.gov.uk

2.10 Coherence and comparability

The data collection and methodology changes following the UK leaving the EU, as detailed in Annex E of the overseas trade in goods statistics methodology and quality report annexes.

2.11 Cost, burden

The data used in the Preference utilisation of UK trade in goods statistics release are derived from several different data sources. The data for the imports into the UK is derived from HMRC’s UK goods imports by tariff regime. The data for exports from the UK to trading partner is derived from data received from partner countries and territories as part of agreed data exchanges. It is a legal requirement within the agreement text for Japan, Viet Nam, Canada, Turkey, Iceland and Norway to share between each partner and the UK, annual import statistics for the previous year, including figures at tariff-line level, on preferential and on non-preferential trade in goods. There are no extra resources required to collect data. No extra cost is required to publish this statistic release.

2.12 Confidentiality, transparency and security

All data released is published in aggregate tables, no individual consignment level data is released. Record level data relating to the aggregate tables is compliant with the Data Protection Act and held in line with a number of data sharing agreements between the department and the data suppliers. Non-EU partners were made aware of the publication of figures, based on data received from non-EU partners, prior to publication.

There are no confidentiality issues with the data contained in the Preference utilisation of UK trade in goods statistics publication as DBT does not publish disclosive information. In line with Government Statistical Service guidance on confidentiality, DBT will ensure that the information published does not reveal the identity of an individual or organisation, taking account of information available from other sources.

Data is not reported below HS2 commodity level, or below country/territory level, and only broken down by full calendar year. As a result the data cannot be linked to any individual trader or consignment.

2.13 Disclaimer

All figures in these releases are accurate based on the data made available, and all liability for the accuracy of these statistics is with the data owners, that is, HMRC for imports and Eurostat, National Statistic Organisations and Customs authorities of FTA Trade partners, for exports.

DBT takes no responsibility for errors or omissions in the data sources used.

Country and territory names used are in line with the statistical classifications set out in Appendix 4 of the Balance of Payments Vademecum and do not represent the UK policy on disputed territories.

3. Glossary

Preferential tariff rate: This is where there is an agreement with a country or territory to import goods from at a reduced rate of Customs Duty (also known as a tariff preference or preferential rate of duty). 

Free trade Agreement: A free trade agreement is a pact between 2 or more nations to liberalise the trade of goods and services by reducing the barriers to import and export between them.

Economic Partnership Agreements (EPAs): EPAs are principally development-focused trade agreements that aim to promote increased trade and investment. They contribute to sustainable growth and poverty reduction in developing countries and territories.

Generalised Scheme of Preferences (GSP): This is a scheme which reduces or removes tariffs on UK imports from eligible developing countries and territories into the UK.

The Developing Countries Trading Scheme (DCTS): The DCTS is a Trade for Development scheme, providing unilateral tariff preferences for developing countries or territories. It is designed to increase trade with developing countries or territories, to grow their economies, and reduce poverty. The DCTS entered into force on 19 June 2023 and replaced the UK’s Generalised Scheme of Preferences.

Preference utilisation rate (PUR): PUR is the proportion of goods using the preferential tariffs offered under a trade agreement, where eligible.

Tariff Free: This is the value or percentage of goods that were imported without paying a tariff. That is, using either MFN Zero, Preferential zero or GSP zero.

Tariff rate quota (TRQ): TRQs allow a pre-determined volume of a product to be imported at lower import duty rates (in-quota duty) than the duty rate normally applicable to that product.

Country of origin: Country of origin refers to the country or territory where the goods originated, that is, where they were produced or manufactured.

Country of dispatch: Country of dispatch refers to the country or territory where the last commercial transaction took place. This is not necessarily the country of origin/manufacture or the last country or territory from which the goods were shipped to the UK.

Rules of Origin (RoO): Rules of origin are the criteria used to determine the national source of a good. The origin of the goods is where they have been grown, produced, or manufactured and may not be the country or territory where they are shipped or bought from. Read more details about UK RoOs.

Partner ISO or Partner name: The International Organization for Standardization codes and names for all countries and territories.           

HS2 or HS section: The Harmonized System is a standardized numerical method of classifying traded products. It is used by countries and territories around the world to uniformly identify and describe products. The HS is organized into 21 Sections, which are subdivided into 96 Chapters (HS2).

Agri: Agricultural goods are defined as all goods classified as HS2 chapters 01-24 inclusive.

MFN zero imports: Imports entered under MFN terms with a zero tariff, either under a standard rate, suspension or TRQ.

MFN non-zero imports: Goods imported under MFN terms and the tariff data shows the rate was non-zero (with or without quota) or the duty was suspended with a non-zero rate.

GSP zero imports: Goods imported under GSP preferential terms, and the tariff data shows the rate was zero (with or without quota) or the duty was suspended with a zero rate.

GSP non-zero imports: Goods imported under GSP preferential terms, and the tariff data shows the rate was non-zero (with or without quota) or the duty was suspended with a non-zero rate.

FTA zero imports: Goods imported under non-GSP (FTA) preferential terms, and the tariff data shows the rate was zero (with or without quota) or the duty was suspended with a zero rate.

FTA non-zero imports: Goods imported under non-GSP (FTA) preferential terms, and the tariff data shows the rate was non-zero (with or without quota) or the duty was suspended with a non-zero rate.

Special processing imports: special processing procedures permit goods to enter duty-free or under a reduced rate (inward or outward processing).

Unknown imports: Any imports that have no associated Customs Procedure Code recorded for them.

Pref eligible imports: Imports are considered eligible for preferences if there is a preferential tariff or TRQ available, where the rate is lower than the MFN tariff. Determined by linking the UK Global Tariff to goods imports by country of origin.​ It excludes imports that enter through special processing​, imports where a preference was eligible but ultimately entered under MFN-0 due to a suspension​, or imports where the final import regime is unknown​.

Pref usage imports: Imports that entered using a preferential tariff or TRQ, as determined by customs declarations. Custom declaration entries are validated against the UK tariff.​ It excludes imports that enter through special processing (for example, inward or outward processing)​.

3.1 Contact and Feedback