Preference Tier Graduation: Bhutan
Published 4 September 2026
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Summary
Following its graduation from UN Least Developed Country (LDC) status, the Kingdom of Bhutan will move from Comprehensive to Enhanced Preferences under the UK’s Developing Countries Trading Scheme (DCTS) on 14 December 2026.
Who Should Read This Notice
- business based in the UK and import goods from Bhutan
- business based in Bhutan and export goods to the UK
- business based in countries eligible for cumulation provisions with Bhutan
Understanding why Bhutan is Graduating Preference Tiers
From 14 December 2026, Bhutan will move from Comprehensive to Enhanced Preferences Tier under the DCTS, reducing duty-free, tariff-free access on product lines from 99.8% to 92%.
To learn more about the DCTS Preference tiers and the benefits under each preference tier, visit: Preference tiers under the Developing Countries Trading Scheme - GOV.UK.
Under the DCTS, a country graduates from Comprehensive Preferences to Enhanced Preferences once it graduates from least developed country (LDC) status, as defined by the United Nations.
To qualify for Enhanced Preferences, countries must also be economically vulnerable. Economic vulnerability under the DCTS is assessed on export diversification and share of global exports.
To support a smooth transition from Comprehensive to Enhanced Preferences, the DCTS provides a three-year transition period. As Bhutan graduated from UN LDC status on 13 December 2023, this transition period will end on 13 December 2026.
UN LDC Graduation: 13 December 2023
End of Transition Period: 13 December 2026
Effective date of graduation to Enhanced Preference Tier: 14 December 2026
Legislation
The UK Government will update relevant legislation to reflect Bhutan’s preference tier graduation , effective from 14 December 2026.