The decision by the UK government to replace the Generalised Scheme of Preferences (GSP) program with the Developing Countries Trading Scheme (DCTS) has sparked confusion among Indian exporters. As part of the new scheme, the UK has introduced different product descriptions than those used by India for exports. This has led to efforts by the Federation of Indian Export Organisations (FIEO) to align products between the two systems to ensure clarity for exporters.
The DCTS aims to benefit labour-intensive sectors like leather, carpets, chemicals, iron and steel, and textiles by offering import duty cuts akin to the GSP scheme. However, changes in the origin declaration process under the DCTS have raised challenges for Indian exporters who are accustomed to using HS 8-digit codes compared to the UK’s HS 12-digit codes.
To address these discrepancies, FIEO is working to find equivalent 8-digit codes for products to facilitate smoother export processes. Despite the technical hurdles, Indian exporters are advised to prepare for compliance with the new rules under the DCTS starting from January 1, 2024, to benefit from tariff concessions on exports to the UK. The importance of accurately identifying and complying with the origin criteria highlighted in the new trading scheme cannot be overstated for Indian exporters seeking to leverage the DCTS for their exports to the UK.
