New Delhi, June 19 (KNN) The UK’s new Developing Countries Trading Scheme (DCTS) which has come into effect from Monday will no longer give Indian goods worth USD 960 million concessional duty access.

India and Indonesia have seen products go out of the preferential duty regime as they are now on the ‘Standard Preferences’ list with the new scheme coming into force.

These include leather goods, carpets, certain textiles products, iron & steel products and chemicals.

However, India and the UK negotiating a free trade agreement (FTA), the exclusion of some of the goods may be temporary as the government is pushing for lower duty access for textiles and leather goods under the proposed treaty.

“Several labour-intensive sectors are not part of the new scheme. Many of them will be part of the FTA,” an industry source told TOI.

Products such as Indian leather will move to UK Global Tariff whose exports are seen to be “especially competitive”. Metals from India were seen to be “not as competitive” and will move to the “DCTS standard preference rate”, which means they retain some concession. Goods such as bicycles exported from India are also expected to gain under DCTS, an industry source told TOI.

Total are 19 chapters in the tariff schedule under which goods have been subjected to the “graduation” formula from India. The exact number of goods is not readily available.  (KNN Bureau)