The United Kingdom has launched a Developing Countries Trading Scheme (DCTS) which offers developing countries one of the most generous sets of trading preferences of any country in the world and which is similar to the EU’s GSP Plus scheme.
According to the new scheme, after Bangladesh graduates from the Least Developed Country (LDC) status in 2026, Bangladeshi exports of garments to the UK will continue to attract zero percent duty, even after using imported raw materials.
The UK is the third largest export destination for Bangladesh after the US and the EU. Bangladesh exported US$ 5.02 billion worth of clothing to the UK in fiscal 2023, up from $4.50 billion in fiscal 2022 or a growth of 11.78 percent.
During the first seven months of 2023, Bangladeshi shipments of apparel to the UK reached $3.11 billion, up from $2.72 billion in the corresponding months of the previous year or 14.11 percent.
United Kingdom said the scheme demonstrates the UK’s commitment to building long-term, mutually beneficial relationships with emerging economies that are home to more than 3.3 billion people.
The DCTS applies to 65 countries, offering lower tariffs and simpler rules of origin requirements for exporting to the UK and the scheme helps countries to diversify their exports and grow their economies, while British households benefit from lower prices.
New UK policy to help Bangladesh export duty-free garments
