Of the £1.8 billion worth of Philippine goods shipped to the UK in 2025, around £299 million qualified for benefits under the Developing Countries Trading Scheme, or DCTS. However, only £207 million worth of eligible exports claimed the preferential tariffs.
Philippine exporters left about £92 million, or roughly P7.7 billion, worth of eligible exports without preferential tariff treatment in the United Kingdom last year, exposing a major opportunity for local firms to cut costs and strengthen their foothold in the market.
Of the £1.8 billion worth of Philippine goods shipped to the UK in 2025, around £299 million qualified for benefits under the Developing Countries Trading Scheme, or DCTS. However, only £207 million worth of eligible exports claimed the preferential tariffs.
Make better use of the scheme
UK trade adviser Ellie Parker said exporters could make better use of the scheme, particularly as Philippine products continue to find opportunities in the British market.
Potential growth areas include electronic equipment and machinery, bananas, plantains and pineapples, sustainable apparel, tuna, coconut products and spectacles.
DCTS provides Phl with enhanced preferences
The DCTS, which replaced the UK’s previous Generalised Scheme of Preferences in 2023, provides the Philippines with enhanced preferences, granting zero-percent tariffs on 92 percent of product lines.
To qualify, exporters must claim the preference and comply with rules governing the origin and processing of their products.
Recent reforms could further improve access for Philippine companies. The UK eased rules of origin for garments in January 2026, giving manufacturers greater flexibility in sourcing materials from other countries while maintaining the required local processing.
Regional cumulation rules expanded
The UK also expanded regional cumulation rules by creating a single Asian group covering 18 countries. The arrangement allows exporters, subject to applicable rules, to treat certain materials sourced within the group as originating inputs.
“Philippine exporters now have greater flexibility in sourcing inputs regionally,” Parker said.
She urged local firms to maximize the scheme, adding that “the recent DCTS reforms have made it easier than ever for Filipino firms to qualify for that zero percent tariff duty.”
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