Preference Tier Graduation: Vanuatu
Published 9 June 2026
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1. Summary
Following its graduation from UN Least Developed Country (LDC) status, the Republic of Vanuatu moved from Comprehensive to Enhanced Preferences under the UK’s Developing Countries Trading Scheme (DCTS) on 1 January 2026.
2. Who Should Read This Notice
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business based in the UK and import goods from Vanuatu
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business based in Vanuatu and export goods to the UK
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business based in countries eligible for cumulation provisions with Vanuatu
3. Understanding why Vanuatu Is Graduating Preference Tiers
From 1 January 2026, Vanuatu moved 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 provided a 3-year transition period. Vanuatu was granted an exceptional extension to this transition period due to the impacts of COVID‑19 and to support post‑disaster reconstruction
UN LDC Graduation: 4 December 2020
End of Transition Period: 31 December 2025
Effective date of graduation to Enhanced Preference Tier: 1 January 2026
4. Legislation
Vanuatu is listed as an enhanced preference tier country in Part 1 of Schedule 1 in The Trade Preference Scheme (Developing Countries Trading Scheme) Regulations 2023. It is no longer classified as a ‘least developed country’ and is instead listed as an ‘eligible developing country’ in Schedule 3 of Taxation (Cross-border Trade) Act 2018.