India (Common Wealth) _ According to TOI, Indian goods worth $960 million will lose concessional duty access due to the UK’s new Developing Countries Trading Scheme (DCTS), which will replace the old preferential regime from Monday. Carpets, leather products, iron and steel commodities, aviation parts, precious metals, and chemicals are among the items available.
However, because both nations are in the midst of finalizing a Free Trade Agreement, this exclusion may be transitory.
Because they are no longer on the “Standard Preferences list,” Indian items are no longer subject to favorable duty restrictions. Under the Free Trade Agreement that India and the United Kingdom are negotiating, the government is pushing for lower entry for textiles and leather goods.
Since January of last year, India and the United Kingdom have been discussing an FTA with the goal of reaching a comprehensive agreement that will greatly increase the bilateral commercial relationship worth an estimated GBP 34 billion in 2022.
India was the UK’s 12th largest trading partner in the four quarters to the end of Q3 2022, accounting for 2.1 percent of total UK trade, according to official UK government statistics.
DCTS will offer duty-free and quota-free trade to Least Developed Countries (LDCs) on all goods except armaments. Most Low Income Countries (LICs) and Low- and Middle-Income Countries (LMICs), including India, will be able to trade quota-free on 85 percent of qualified commodities. .
The UK government, on the other hand, has declared that goods in transit or in a customs warehouse will be eligible for GSP (General Scheme of Preferences) benefits. However, it said that the proof of origin certificate must be issued by June 19.The DCTS has undergone a number of changes that will benefit the least developed countries, as well as low-income and vulnerable developing countries. According to the UK government, 85 percent of commodities from various regions of the world receive preferential access to the UK, as opposed to 80 percent under GSP.
The UK’s Department of Business and Trade (DBT) recently classified the UK-India investment partnership as “thriving,” with more than GBP 28 billion invested in each other’s economy, supporting more than 500,000 employment.
