You need to know your preference tier to identify the benefits you can access under the DCTS and how long you can access them for.
\n\n
1. Find out your country preference tier
\n\n
There are 3 country preference tiers under the DCTS:
\n\n
\n \n \n | Category | \n Comprehensive Preferences | \n Enhanced Preferences | \n Standard Preferences | \n
\n \n \n \n | Country classification | \n Least Developed Countries (LDCs) | \n Low Income Countries (LICs) and Lower-Middle Income Countries (LMICs) that are not LDCs\n | \n Remaining LICs and LMICs that do not satisfy economic vulnerability criteria | \n
\n \n | Criteria for determining country classification | \n The United Nations (UN) classifies LDCs\n | \n The World Bank classifies income levels | \n Economic vulnerability is assessed by export diversification | \n
\n \n | Number of countries covered | \n 47 | \n 16 | \n 2 | \n
\n \n
\n\n
Country classifications under each preference tier may change when they are reviewed.
\n\n
The DCTS does not apply to:
\n\n
\n - countries classified by the World Bank as Upper-Middle Income Countries (UMICs) for 3 consecutive years
\n - non-LDCs with a Free Trade Agreement (FTA) or Economic Partnership Agreement (EPA) with the UK
\n
\n\n
The measures for assessing economic vulnerability are currently export diversification and share of global good exports. However, the UK government will review this measure within 1 year of launching the Scheme.
\n\n
Country preference tier list
\n\n
Comprehensive Preferences
\n\n
\n - Afghanistan
\n - Angola
\n - Bangladesh
\n - Benin
\n - Bhutan
\n - Burkina Faso
\n - Burundi
\n - Cambodia
\n - Central African Republic
\n - Chad
\n - Comoros
\n - Democratic Republic of the Congo
\n - Djibouti
\n - East Timor
\n - Eritrea
\n - Ethiopia
\n - Gambia
\n - Guinea
\n - Guinea-Bissau
\n - Haiti
\n - Kiribati
\n - Laos
\n - Lesotho
\n - Liberia
\n - Madagascar
\n - Malawi
\n - Mali
\n - Mauritania
\n - Mozambique
\n - Myanmar
\n - Nepal
\n - Niger
\n - Rwanda
\n - Sao Tome & Principe
\n - Senegal
\n - Sierra Leone
\n - Solomon Islands
\n - Somalia
\n - South Sudan
\n - Sudan
\n - Tanzania
\n - Togo
\n - Tuvalu
\n - Uganda
\n - Yemen
\n - Zambia
\n
\n\n
Enhanced Preferences
\n\n
\n - Algeria
\n - Bolivia
\n - Cape Verde
\n - Congo, Rep.
\n - Cook Islands
\n - Kyrgyz Republic
\n - Federated States of Micronesia
\n - Mongolia
\n - Nigeria
\n - Niue
\n - Pakistan
\n - Philippines
\n - Sri Lanka
\n - Syria
\n - Tajikistan
\n - Uzbekistan
\n - Vanuatu
\n
\n\n
Standard Preferences
\n\n
\n\n
2. Understand the benefits under each preference tier
\n\n
Countries in each preference tier have access to different benefits under the DCTS.
\n\n
\n \n \n | Product tariff | \n Comprehensive Preferences | \n Enhanced Preferences | \n Standard Preferences | \n
\n \n \n \n | Tariff free products (0%) | \n 99.8% | \n 92% | \n 65% | \n
\n \n | Products with 0% to 5% tariffs | \n 0.2% | \n 0.4% | \n 10% | \n
\n \n | Products with 5% to 10% tariffs | \n 0% | \n 0.4% | \n 12% | \n
\n \n | Products with more than 10% tariffs (including Specific Tariffs* | \n 0% | \n 7.2% | \n 13% | \n
\n \n
\n\n
*Specific tariffs are tariffs calculated as a fixed charge on a unit of the product. The product unit could be weight, volume, number of items or other criteria.
\n\n
Comprehensive Preferences
\n\n
Exporters in countries entitled to Comprehensive Preferences receive 0% import tariffs on 99.8% of products – all products except arms and ammunition. These are the most generous preferences under the Scheme to give LDCs the most support in diversifying their exports and growing their economies. Forty-seven countries are eligible for Comprehensive Preferences.
\n\n
Enhanced Preferences
\n\n
Enhanced Preferences entitle exporters in eligible countries to 0% import tariffs on 92% of their product lines under the DCTS. Sixteen countries qualify for Enhanced Preferences, because the DCTS includes 8 additional countries compared to the UK Generalised Scheme of Preferences (GSP). Products not covered under Enhanced Preferences are subject to tariff rates under the UK Global Tariff (UK GT).
\n\n
Standard Preferences
\n\n
Standard Preferences entitle exporters in eligible countries to 0% import tariffs on 65% of product lines, while a further 26% of product lines have reduced tariffs.
\n\n
Countries eligible for Standard Preferences are also subject to goods graduation. Goods graduation is the suspension of preferential tariff rates on highly competitive products. There are 2 countries eligible for Standard Preferences (India and Indonesia). Product lines that Standard Preferences do not cover are subject to rates under the UK GT.
\n\n
3. Tier graduation criteria and transition periods
\n\n
Country classifications under preference tiers can change, because countries may move from one tier to another.
\n\n
Graduation from Comprehensive Preferences to Enhanced Preferences
\n\n
A country graduates from Comprehensive to Enhanced Preferences once they move from LDC status as defined by the UN. These countries must also be considered as economically vulnerable. The criterion for economic vulnerability under the DCTS is export diversification.
\n\n
View the full list of Least Developed Countries as classified by the UN.
\n\n
Within 1 year of launching the DCTS, the government intends to review alternative options for assessing economic vulnerability.
\n\n
When a country graduates from LDC status, its transition period before moving to Enhanced Preferences is 3 years.
\n\n
Graduation from Enhanced Preferences to Standard Preferences
\n\n
Countries that do not meet the economic vulnerability criteria will graduate from Enhanced Preferences to Standard Preferences.
\n\n
Transition period for countries entering FTAs or EPAs with the UK
\n\n
LDCs which enter an FTA or EPA with the UK can continue to use DCTS Comprehensive Preferences.
\n\n
Non-LDCs within regional groups that sign trade agreements with the UK, can access benefits under the DCTS for 2 years. After 2 years, one-way extended cumulation will apply between the UK-FTA partner and the regional DCTS members.
\n\n
For example, Vietnam, a group 1 member under the DCTS, signed an FTA with the UK and transitioned out of the DCTS, effective January 2023. As a result, other DCTS countries can use extended cumulation with Vietnam, but Vietnam cannot cumulate with the DCTS countries.
\n\n
Upper Middle-Income Country (UMIC) status and the DCTS\n
\n\n
The World Bank designates countries with different economic classifications. If a DCTS country retains UMIC status for 3 consecutive years, it will be notified of the need to transition out of the DCTS, with an adjustment period of approximately 18 months whereby the country can continue to access tariff reductions. After this period has concluded, the country will no longer be able to access DCTS preferences and will exit the Scheme.
\n\n
Should a country move from UMIC to Lower Middle-Income Country (LMIC) status, it will be re-admitted to the DCTS.
\n\n