COO - UK Developing Countries Trading Scheme ( DCTS)
It is hereby informed to all concerned that the United Kingdom (UK) has replaced its existing origin declaration process under Generalized Scheme of Preferences (GSP) with the “Developing Countries Trading Scheme (DCTS).”
Goods that meet the UK DCTS Rules of Origin (RoO) requirements shall be eligible to claim a concessional rate of import duty for exports to the UK. Indian Exporters accordingly are directed to use origin declaration wording under DCTS scheme.
Rules of Origin (RoO) based on :
A) Product specific rules (PSRs)
PSRs are the list of processing rules a product needs to meet to be considered as originating from the country that claims preferential tariff rates.
B) Cumulation
Cumulation allows a material from another country to be considered as ‘originating’ when used in the production of a product, as long as that final product has been processed beyond minimal levels. Cumulation can make it easier for countries to comply with the non-originating content limits.
Certain Asian countries are permitted to cumulate with each other within 2 regional groups as follows:
• Indonesia, Philippines, Vietnam along with LDCs: Cambodia, Laos and Myanmar
• India, Pakistan, Sri Lanka along with LDCs: Bangladesh, Bhutan and Nepal
India and Indonesia are not eligible to be classified as economically vulnerable and therefore do not have DCTS Enhanced Preferences.
Countries will lose DCTS Enhanced Preferences and move to DCTS Standard Preferences when their economies have developed enough to no longer be classified as economically vulnerable.
www.lucrative.co.in
2024-04-03