PHILIPPINE exporters missed out on preferential tariffs on 92 million pounds (about P7.7 billion) worth of eligible exports to the UK in 2025, showing that the trade scheme remains underused, UK trade adviser Ellie Parker said.
Parker said about 1.8 billion pounds worth of Philippine goods entered the UK last year, including 299 million pounds eligible for preferences under the Developing Countries Trading Scheme (DCTS). Only 207 million pounds of eligible exports used
the scheme.
The figures show an opportunity for Philippine exporters to make greater use of the DCTS as demand for Philippine products remains strong in the UK, Parker said.
She identified electronic equipment and machinery, bananas, plantains and pineapples, sustainable apparel, tuna, coconut products and spectacles as Philippine products with growth potential in the UK market.
The DCTS, which took effect in June 2023, replaced the UK Generalised Scheme of Preferences. It cuts or removes import tariffs for 65 developing countries, including the Philippines.
The scheme has three tiers. The Philippines is covered by Enhanced Preferences, which provides zero tariffs on 92% of product lines. Comprehensive Preferences for least developed countries cover 99.8% of product lines, while Standard Preferences cover 65%.
Parker said exporters must actively claim DCTS benefits and comply with its rules of origin, including providing proof that their goods meet the required processing requirements.
The UK introduced reforms to the scheme in January 2026 that could benefit Philippine exporters, particularly garment makers. The changes allow greater flexibility in sourcing inputs from other countries, provided the required processing is done locally.
The UK also expanded regional cumulation in Asia into a single group of 18 countries. This allows exporters to source materials from designated countries in the region and, subject to the rules, count them as originating inputs when determining eligibility for preferential tariffs.
The changes give Philippine exporters greater flexibility in sourcing inputs regionally, Parker said.
She urged Philippine companies to make fuller use of the DCTS, saying the reforms have made it easier for Filipino firms to qualify for zero tariffs. / PHILEXPORT NEWS
