The government will work with exporters to maximize the use the duty-free access granted by the United Kingdom under the recently-launched Developing Countries Trading Scheme (DCTS) where the Philippines is expected to save as much as 21 million pounds or P1.4 billion worth of tariffs every year.
In welcoming the qualification of the Philippines in UK’s replacement to its Generalized System of Preferences (GSP), trade undersecretary Ceferino Rodolfo, said: “We have been working with the UK government for the past years to ensure that not only do we maintain same level of access to the UK market, similar to the EU (European Union) GSP+; but to even improve through simpler rules and procedures including on the rules of origin. “
But Rodolfo noted there remains some important work between the Philippine government and the exporters in maximizing the utilization of DCTS, which would come into force in early 2023.
UK ambassador to the Philippines Laure Beaufils in a statement said more than 80 percent of exported Filipino products, and 99 percent of total goods by value exported from the Philippines, will be eligible for duty free access to the UK.
“The launch of the DCTS is a great opportunity for the UK and the Philippines to build on our strong existing bilateral trade and investment relationship. The scheme will boost our trade and provide new opportunities for Filipino and British businesses,” said Beaufils.
In 2019, UK was the third destination market of PH exports under the EU-GSP+ with a 10.51 percent share. In the same year, the Philippines’ utilization of GSP in the UK alone was at 75 percent.
About 36 percent of total Philippines exports to the UK entered under GSP tariffs.
The major exports of the Philippines to UK under DCTS are prepared or preserved tunas, skipjack and Atlantic bonito; electronic integrated circuits as processors and
controllers; machines which perform two or more of the functions of printing, copying or facsimile transmission ; parts of electrical machines and apparatus; electronic integrated circuits; parts of airplanes or helicopters and; coconut, abaca Manila hemp, ramie, agave and other vegetable textile.
Total trade (goods and services) between the UK and Philippines amounts to 2 billion pounds each year.
Under the DCTS, the Philippines will continue to benefit from duty free exports to the UK on more than 80 of eligible products. In addition, the DCTS will remove tariffs on over 150 additional products. The DCTS will also simplify some seasonal tariffs, meaning additional and simpler access for the Philippines’ exports to the UK.
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.
The DCTS benefits 65 developing countries and is more generous and simpler than the existing UK GSP.
DCTS was announced by the Prime Minister at Commonwealth Heads of Government Meeting on June 23 and launched on August 16 by the Secretary of State for International Trade.
