UK updates DCTS textile origin rules from 1 Jan 2026

If you import or study how clothes move across borders, a useful change is coming. The UK has signed a customs regulation that takes effect from 1 January 2026, tidying up rules of origin under the Developing Countries Trading Scheme (DCTS) and locking in improvements the government trailed for early 2026. In short: simpler tests for many garments, clearer labels for “standard” and “enhanced” preference countries, and a formal UK recognition that Vanuatu has graduated from UN “least developed country” status.

Let’s start with clothing and textiles, because most of you ask about Chapters 61 and 62 of the tariff (knitted/crocheted and woven apparel). From January, sewing together pre‑cut pieces will explicitly count as a sufficient process, crochet is treated the same as knitting, and a long‑standing value rule remains available: you can use non‑originating materials up to 75% of the ex‑works price where the schedule allows it. These changes follow the UK’s plan to reduce processing steps required for garments so more items can qualify on a single, simpler transformation.

You’ll also see a split in how the rules apply, depending on a country’s DCTS tier. Countries on Standard Preferences (SP) keep the existing apparel conditions set out for them; countries on Enhanced Preferences (EP) get a new Part 4 in the origin schedule that switches on the lighter garment tests the government announced, including the removal of the old “double transformation” expectation for many products. This matters if, for example, fabric comes from one place but cutting and sewing happens in another.

For teachers and students, a quick explainer: a rule of origin is the test that says when a product is truly “from” a country for tariff purposes. Under DCTS, those tests vary by product and by the preference tier of the exporting country. The 2023 DCTS regulations set the framework and defined SP and EP countries; the 2026 update borrows those definitions directly into the origin rules so everyone reads the same labels. Think of it as making the paperwork and the handbook match.

Regional cumulation also broadens. Cumulation lets a factory count inputs from specified neighbours as if they were local. The UK is introducing a large Africa Regional Cumulation Group, making it easier to source yarn or fabric regionally and still qualify for UK preferences once final processing happens in the DCTS country. For apparel makers and UK buyers, that can cut costs and shorten supply chains.

A headline status change sits alongside the textile edits: Vanuatu is moved, in UK law, from the list of least developed countries to the list of other eligible developing countries, reflecting the UN’s decision to graduate Vanuatu on 4 December 2020. Under DCTS, graduated LDCs transition on generous terms; the government’s guidance confirms a smoothing approach so exporters keep continuity as they shift tiers. What this means: UK importers should keep claiming DCTS where available, but update supplier declarations to the correct country tier.

Who can use the “enhanced” tier? The baseline rule has been export concentration (a country’s seven largest DCTS sections making up over 75% of its DCTS‑eligible exports to the UK). The new regulation adds a second way in: countries with a very small share of global goods exports can also qualify, which is designed to catch economies that are small rather than undiversified. For classrooms, this is a good case study in how trade policy blends data thresholds with development aims.

There are a few other moving pieces you might bump into when checking codes. The UK is updating its reference documents and preferential tariff files for several agreements, and it has confirmed a long‑running raw cane sugar autonomous tariff quota will be set at 325,000 tonnes from 1 January 2026. In parallel, the UK‑ESA committee renewed a rules‑of‑origin derogation for preserved tuna and tuna loins from 1 January 2026 to 2030, within annual quotas. These changes live in official reference documents rather than the tariff text itself, so it’s worth bookmarking the government pages that host the latest versions.

If you work in a school, college or small business, here’s how to get ready. First, for Chapters 61/62, check if your products can now qualify with a single operation such as sewing pre‑cut pieces or knitting/crochet to shape; if so, update your statements on origin and supplier declarations. Second, if you source regionally in Africa or across nearby countries, test whether the new cumulation group helps you meet origin without changing suppliers. Third, keep proof of the ex‑works price and non‑originating input values so you can use the 75% value rule where it appears in the schedule. Finally, make sure Vanuatu is listed correctly in your systems and any preference claims match the new tier.

Timeline recap you can pin to your wall: the DCTS framework came in during 2023; government signalled garment rule simplifications in August 2025; the new customs regulation takes effect on 1 January 2026, aligning the legal text with that policy and with Vanuatu’s UN status. If you remember one thing, remember this: from January, the UK is making it easier to qualify apparel for DCTS-especially in EP countries-while keeping learning pathways open for students and traders who want to understand how origin really works.