Generalised Scheme of Preference (GSP) ended on 19th June 2023 and has been replaced by Developing Countries Trading Scheme (DCTS)
The UK’s GSP (Generalised Scheme of Preferences) has been replaced with a new scheme – The Developing Countries Trading Scheme (DCTS). There are a few things that you should be aware of, particularly if you deal regularly with countries included in the GSP.
What has changed?
Very little, the overall scheme will be very similar. Some countries have been re-allocated to different tiers of preference and these different tiers have been renamed. The full updated list is here:
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Do Origin Statements need to change?
Yes. According to HMRC guidance, preferential statements should no longer use ‘Generalised Scheme of Preferences’ and should instead make reference to ‘Developing Countries Trading Scheme’. According to the information we have been given, we expect the new origin statement should look as follows:
FOR EXAMPLE PUROPSES ONLY
Please note that this Preferential Statement is based on information we currently have available and has not been officially confirmed by HMRC.
Will the Form A be valid?
Yes. Existing Form A’s will be valid, however HMRC are in discussions to update the existing Form A.
Is there a transition period?
HMRC have implemented a transition period for this change. GSP origin statements will now be valid until 31/12/2023.
This now allows time for us to absolutely determine the documentary requirements.
From 2024 onwards, any consignments making reference to GSP will not be able to clear with any Preference applied. This includes any goods in transit or stored in a bonded warehouse.
The HMRC Online Tariff has now been updated and shows the new Preference for DCTS countries
If you are at all familiar with the HMRC Online Tariff, please be aware that it no longer shows any of the preferential rates for GSP and now shows DCTS instead.
Some duty rates may have changed
Be advised that some duty rates may have changed from GSP and are subject to change at any time. Therefore if you have regular GSP shipments, please be aware of this.
Please note that Government guidance may change in the future. If you have any questions, please speak to your usual contact at Davies Turner. We have also included below HMRC's official uidance below for your reference.
HMRC’s ‘Official’ guidance: https://www.gov.uk/guidance/how-to-claim-preferences-under-the-developing-countries-trading-scheme-dcts
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