The Philippines would be able to save up to 21 million pounds a year under the United Kingdom’s Developing Countries Trading Scheme (DCTS), its new duty-free scheme to developing trade partners.
Laure Beaufils, UK ambassador to the Philippines, told a briefing hosted by the British Chamber Commerce of the Philippines, that UK will work with the Department of Trade and Industry on how businesses in the country can avail of the duty-free privilege scheme introduced by UK last year.
Beaufils explained that DCTS is similar to the European Union generalized system of preferences (GSP) but that it has added 150 new product lines and simplified rules to make it easier and cheaper to import and export.
This means, the Philippines will continue to benefit from duty free exports to the UK on more than 80 percent of eligible products. This will help Philippines save up to 21 million pounds a year, she said. DCTS takes effect this year.
Beaufils expressed optimism trade with the Philippines will continue to grow after hitting 2.1 billion pounds in 2022.
Also, the UK duty-free scheme will remove tariffs on over 150 additional products. It has also simplified seasonal tariffs, making it simpler for Philippines’ exports to enter the UK market.
The DCTS also offers generous rules of origin, making it easier to produce goods using components from other countries without losing duty-free status. It will be one of the most generous sets of trading preferences of any country in the world, helping to grow trade, boost jobs and drive economic growth.
A total of 65 developing countries are eligible for DCTS duty-free privilege for their exports.