Explanatory note

Regulation 3 provides for the definitions of EP country and SP country in the Trade Preference Scheme (Developing Countries Trading Scheme) Regulations 2023 (S.I. 2023/561) (the “DCTS Preference Regulations”) to apply to the Customs (Origin of Chargeable Goods: Developing Countries Trading Scheme) Regulations 2023 (S.I. 2023/557) as well.

Regulation 4 provides for a new Part 4 to set out conditions for the processing of goods to constitute an important stage of manufacture in countries eligible for enhanced preferences, as defined by regulation 9 of the DCTS Preference Regulations.

Regulation 6 applies the existing notes in Schedule 1 Part 1, to the new Part 4. Note 1.4 is amended to provide for particular commodity codes in Part 3 to apply only to countries eligible for standard preferences, as defined by regulation 10 of the DCTS Preference Regulations and for the commodity codes in Part 4 to apply to countries eligible for enhanced preferences.

Regulation 7 amends the conditions required for the processing of particular goods in least developed countries (“LDCs”), as listed in Part 2 of Schedule 3 to the Taxation (Cross-border Trade) Act 2018 (c.22) (“the Act”) to qualify for preferences. These conditions relate to goods in Chapters 61 and 62 of the Goods Classification Table, as defined in regulation 1(2) of the Customs Tariff (Establishment) (EU Exit) Regulations 2020 (S.I. 2020/1430). The conditions are amended to clarify that assembly from pre-cut or pre-made pieces is sufficient processing and to include crocheting. It further amends the conditions to include man-made staple fibres within the final alternative (dyeing) for Chapter 61, to align with the third alternative (spinning), and includes dyeing as well as printing for commodity codes 6213 and 6214.

Regulation 8 disapplies the conditions required for the processing of goods in Chapters 61 and 62 for countries eligible for enhanced preferences, so that those conditions only apply to countries eligible for standard preferences. It also amends those conditions to include crocheting.

Regulation 9 introduces the new Part 4, which specifies the conditions required for the processing of goods in Chapters 61 and 62 in countries eligible for enhanced preferences to qualify for preferences.

Regulation 10 amends the groups eligible for intra-regional cumulation under regulation 18 of the Customs (Origin of Chargeable Goods: Developing Countries Trading Scheme) Regulations 2023. The two existing groups are consolidated into a single group and expanded and a new group is added.

Regulation 11 adds an alternative limb by which a country can qualify as economically vulnerable under regulation 9 of the Trade Preference Scheme (Developing Countries Trading Scheme) Regulations 2023, and thereby be eligible for enhanced preferences. It also adds Vanuatu to the list of countries eligible for enhanced preferences.

Regulation 12 removes Vanuatu from the list of LDCs in Part 2 of Schedule 3 to the Act and adds it to the list of other eligible developing countries in Part 3 of Schedule 3 to the Act.

Regulation 13 amends the definition of “the authorised use document” in regulation 32(2) of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018 (S.I. 2018/1249) to refer to a new version of that document. Minor corrections are made to codes relating to aluminium tubes and pipes and mineral fuels and oils. Table 2 of the authorised use document is amended to extend authorised use to certain aircraft components imported into the UK to persons participating in the New Joint Strike Force Fighter Production, Sustainment and Follow-On Development Memorandum of Understanding (New JSF PSFD MOU). Table 3 of the document is amended to clarify that the description of steel includes goods that can be produced from the transformation of “Non alloy and other alloy hot rolled sheets and strips”.

Regulation 14 amends the definition of the “Tariff of the United Kingdom” document in regulation 1(2) of the Customs Tariff (Establishment) (EU Exit) Regulations 2020 to refer to a new version of that document. The new version of that document makes minor technical and administrative corrections to improve the document’s overall clarity.

Regulation 15 amends the definition of “authorised use rates document” in regulation 20(4) of the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1431) to refer to a new version of that document. The new version of this document contains amendments to the rates for authorised use to reflect the changes to the authorised use document made by regulation 13.

Regulation 16 amends the definition of “Quota Table” in regulation 2(1) of the Customs (Tariff Quotas) (EU Exit) Regulations 2020 (S.I. 2020/1432) to refer to a revised version 4.4 of the “Tariff Quotas” document. An increase to quota 05.7713, an autonomous tariff quota for sugar, is included in that document which will take effect for the goods concerned at the start of the next quota year on 1st January 2026.

Regulation 17 amends the definition of “Suspensions of Import Duty Rates Document” in regulation 2 of the Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020 (S.I. 2020/1435) to refer to a new version of that document. The new version of that document has been revised to extend the suspension of tariffs on certain goods, and correct minor errors in existing suspensions.

Regulation 18 amends Schedule 1 to the Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020 (S.I. 2020/1457) to give effect to updated versions of the Preferential Tariff reference documents and origin reference documents applicable in respect of preferential trade arrangements with various countries or territories. The Preferential Tariff reference documents update quota volumes and administration in accordance with the terms of the arrangement, update commodity codes and correct errors. The Preferential Tariff reference document for the Faroe Islands is updated to give effect to Decision No. 1/2025 of the United Kingdom-Faroe Islands Joint Committee of 19th August 2025, which increased the annual tariff quota for fish feed to 20,000 tonnes. The origin reference document for the Eastern and Southern Africa States is updated to give effect to Decision No. 1/2025 of the Customs Cooperation Committee of 6th November 2025, which provides for a derogation from rules of origin in respect of preserved tuna and tuna loins.

By virtue of section 32A of the Act (as inserted by section 75 of the Finance Act 2022 (c. 3)), where regulations made under any of sections 8 to 19 of the Act make provision by reference to a document, this is a reference to the document as modified from time to time, or as replaced, by notice by the appropriate authority: https://www.gov.uk/government/publications/notices-made-under-s32a-of-the-taxation-cross-border-trade-act-2018. As updates have been made to the documents referred to in the provisions of this instrument by notice under section 32A of the Act, certain of the version number updates appear as non-sequential in this instrument.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.

This instrument maintains the position of existing legislation, which was covered by a Tax Information and Impact Note published on 13th January 2021: https://www.gov.uk/government/publications/the-uks-integrated-tariff-schedule.