18 August 2023, Mumbai
The Government of the United Kingdom has introduced a new tariff scheme titled “Developing Countries Trading Scheme (DCTS)”.
This scheme replaces the EU GSP scheme under which Bangladesh used to access the U.K. free of duty.
Benefits of the DCTS for Bangladesh
Under the new scheme, Bangladesh’s RMG products will continue to enjoy duty-free market access in the U.K.
The DCTS will make it easier to enjoy duty-free market access using imported raw materials.
Comparison with the EU GSP Plus scheme
The DCTS is similar to the EU’s GSP Plus scheme, but it does not include a textile safeguard provision.
This means that Bangladesh's apparel products are less likely to be subject to tariffs in the future.
Commitment to social and environmental standards
Bangladesh is committed to continuing to improve its social and environmental standards.
The DCTS recognizes this commitment and does not impose any additional requirements in this area.
Importance of the UK market for Bangladesh
The UK is the third largest export destination for Bangladesh. In the last fiscal year, Bangladesh exported US$5.02 billion worth of clothing to the U.K.
Growing interest from British clothing brands and retailers
British clothing brands and retailers are increasingly interested in sourcing from Bangladesh.
This is due to the progress that Bangladesh has made in improving its social and environmental standards.
Quick Message
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The DCTS is a positive development for Bangladesh. It will help to boost exports and create jobs. Bangladesh is committed to making the most of this opportunity.
CREDITS: BGMEA Press Release.
