Developing Country Trade Scheme (DCTS)
Developing Country Trade Scheme (DCTS)
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For Prelims: About Developing Country Trade Scheme (DCTS), Important points, Developing Country Trade Scheme is applicable to 65 countries, |
Why in the news?
According to recent reports, exporters wishing to avail duty concessions on shipments to the United Kingdom (UK) will have to comply with new British rules under the Developing Country Trade Scheme (DCTS).
Important points:
- It does not apply to countries and territories deemed by the World Bank as 'upper-middle income' for three consecutive years, or to LICs and LMICs that have a free trade agreement (FTA) with the UK.
About Developing Country Trade Scheme (DCTS):
- It is a scheme launched by the UK Government to facilitate developing countries to integrate into the global economy, build stronger trade and investment partnerships, and strengthen supply chains.
- It is a simpler and more generous preferential trade scheme designed to promote trade with developing countries and support their development.
- This reduces the rates of duty or tariffs on imports into the UK from eligible developing countries.
- This enables UK businesses to access thousands of products from around the world at low prices, reducing costs for UK consumers.
Developing Country Trade Scheme is applicable to 65 countries:
- In a least developed country (LDC) as defined by the United Nations.
- In low-income countries and lower-middle-income countries as defined by the World Bank.
Source: Indian Express