Exporters dealing with the United Kingdom (UK) are facing new regulations under the Developing Countries Trading Scheme (DCTS). The Directorate General of Foreign Trade (DGFT) recently issued a trade notice regarding these changes, effective from June 19, 2023.
Transition Period and Implementation
- The transition period for these changes was extended until December 31, 2023.
- Starting from January 1, 2024, Indian exporters must adhere to the new rules under DCTS to avail concessions on their exports to the UK.
Rules of Origin and Tariff Concessions
- Goods meeting the UK DCTS Rules of Origin (RoO) requirements are eligible for a concessional rate of import duty for exports to the UK.
- Origin criteria must be filled through self-certification.
Declaration Requirements
- Indian exporters are directed to use origin declaration wording under DCTS instead of GSP.
- Sectors such as leather, carpets, chemicals, iron, steel, and textiles were major beneficiaries under the GSP scheme.
Multiple Choice Questions (MCQs):
- What scheme has the UK replaced its existing origin declaration process under?
- A) Generalized System of Preferences (GSP)
- B) Developing Countries Trading Scheme (DCTS)
- C) European Union (EU) Scheme
- D) United Nations Trading Agreement
- When did the transition period for the new UK trade regulations end?
- A) June 19, 2023
- B) December 31, 2023
- C) January 1, 2024
- D) January 13, 2021
- Which sectors were major beneficiaries under the Generalized System of Preferences (GSP) scheme?
- A) Technology and Electronics
- B) Agriculture and Farming
- C) Leather, Carpets, Chemicals, Iron, Steel, and Textiles
- D) Automotive and Aerospace
- What is the key feature of the Developing Countries Trading Scheme (DCTS)?
- A) Increased tariffs on imports
- B) Complex origin rules
- C) Reduced tariffs on many products from India
- D) No changes in trade regulations
- Which category does India fall under in terms of preferences in the Developing Countries Trading Scheme (DCTS)?
- A) Comprehensive Preferences
- B) Standard Preferences
- C) Special Preferences
- D) Limited Preferences