New Delhi, Mar 27 (KNN) The UK's replacement of the Generalised Scheme of Preferences (GSP) with the Developing Countries Trading Scheme (DCTS) is causing some confusion for Indian exporters due to differences in product descriptions.

The Federation of Indian Export Organisations (FIEO) is working to match Indian product codes with those used by the UK under DCTS to provide clarity to exporters, according to sources.

"Indian exports worth $2.5 billion annually were entitled for GSP benefits in the UK. It's crucial we resolve the product identification issues under DCTS," a source revealed to businessline.

The DCTS, described as simpler and more generous by the UK government, offers similar duty cuts as GSP but with changes to the origin declaration process.

While a DGFT notification outlined the new origin rules, the product descriptions were not provided. 

The UK uses 12-digit HS codes, whereas India uses 8-digit codes.

FIEO is mapping the equivalent 8-digit codes used by Indian exporters to the UK's 12-digit codes for products like leather, carpets, chemicals, steel and textiles covered under DCTS.

"The 6-digit HS codes are universal, so once mapped at that level, the subgroups can be determined," explained a government official on the Harmonised System codes.

Indian exporters must adhere to DCTS regulations to leverage tariff concessions in the UK. 

Compliance entails meeting Rules of Origin (ROO) criteria and providing self-certified origin declarations, replacing previous GSP declarations.

(KNN Bureau)