Use the Developing Countries Trading Scheme to import goods
Get a preferential rate on goods you import to the UK from a Developing Countries Trading Scheme country.
The Developing Countries Trading Scheme allows goods from a range of countries to be imported at a reduced or zero rate of duty.
Find out more about what you need to do to claim a preference.
Countries covered
Check the country you’re trading with is one of the countries covered by the Developing Countries Trading Scheme.
Bilateral cumulation
Businesses in Developing Countries Trading Scheme countries can cumulate with:
- the UK
- British overseas territory (excluding Gibraltar and the Sovereign Base Areas of Akrotiri and Dhekelia)
- EU countries
- Norway (excluding goods listed in Chapters 1 to 24)
- Switzerland (excluding goods listed in chapters 1 to 24)
This means that the materials originating in one of the countries listed above is treated as originating in the Developing Countries Trading Scheme country as long as the processing forms an important stage of manufacturing (known as beyond minimal levels).
Goods listed in chapters 1 to 24 that originate in Norway or Switzerland are excluded from bilateral cumulation.
Intra-regional cumulation
Intra-regional cumulation allows for cumulation between countries in the same regional group.
This means that materials originating in a Developing Countries Trading Scheme country in the same regional group are treated as originating in the Developing Countries Trading Scheme country where the final processing takes place provided the processing goes beyond minimal levels.
Some materials are excluded from intra-regional cumulation, where:
- the Developing Countries Trading Scheme rate applicable to those goods or materials in the UK is not the same for all the countries or territories concerned
- the goods or materials would benefit, through intra-regional cumulation, from a tariff treatment more favourable than if directly exported to the UK
If the processing was only minimal, the origin will be the Developing Countries Trading Scheme country where the largest share of the value of materials originates.
| Group | Countries in the group |
|---|---|
| 1 | Cambodia, Indonesia, Laos, Myanmar and Philippines |
| 2 | Bangladesh, Bhutan, India, Nepal, Pakistan and Sri Lanka |
Inter-regional cumulation
Inter-regional cumulation allows for cumulation of materials between Developing Countries Trading Scheme countries in different regional groups.
Materials originating from a Developing Countries Trading Scheme country in a different regional group can be considered as originating in the cumulating Developing Countries Trading Scheme country if the processing goes beyond minimal levels.
Businesses must apply to use this type of cumulation.
The origin of the finished product will be the Developing Countries Trading Scheme country in which the goods were last processed if the processing was more than minimal.
If that processing was only minimal, the origin will be the country who provided the most customs value of the materials used.
Check if your goods are covered
If your goods come from a Developing Countries Trading Scheme.
Origin rule tolerance
Textile products of tariff chapters 50 to 63 have tolerance rules that apply. These are set out in notes 4 and 5 of Notes on applying origin rules.
Work out your ex-works price by adding up the value of all the non-material costs such as:
- labour
- overheads (including the cost of power and fuel, plant and equipment, machines and tools and any goods not included in the final product)
Proof of origin
To qualify for preferential duty rates, products originating in Developing Countries Trading Scheme countries must have either of the following proof of origin:
- a Form A, which does not need to be stamped or signed by an authority designated by the Developing Countries Trading Scheme beneficiary country (you can submit a copy)
- an origin declaration on an invoice, packing list or consignment note, which must include information that allows the identification of an originating product
Form A and origin declarations issued in a Developing Countries Trading Scheme country are valid for 2 years from their date of issue.
Goods in storage or in transit when the scheme comes into effect
For goods that qualify for a preferential duty rate under the Developing Countries Trading Scheme, the claim to preference can be made using a UK Generalised Scheme of Preferences proof of origin, as long as it was issued on or before 31 December 2023.
For goods that are currently in a customs warehouse, or enter a customs warehouse after 19 June 2023, a claim to Developing Countries Trading Scheme preference can be made on release to free circulation using a UK Generalised Scheme of Preferences proof of origin, as long as it was issued on or before 31 December 2023.
Retrospective claims to Developing Countries Trading Scheme preference can be made using a UK Generalised Scheme of Preferences proof of origin, as long as it was issued on or before 31 December 2023.
Claiming Developing Countries Trading Scheme preference
Your declaration to free circulation should include the following data elements:
- DE 2/3 — Either 9001 (origin declaration) or N865 (Form A)
- DE 4/17 – A code from the 200 series of preference code