Philippine exporters left an estimated £92 million, or about P7.7 billion, worth of eligible shipments to the United Kingdom without claiming preferential tariff treatment in 2025, highlighting a potentially costly gap in the use of the UK’s Developing Countries Trading Scheme (DCTS).
A report by the Philippine Exporters Confederation Inc. (PHILEXPORT), citing UK trade adviser Ellie Parker, said Philippine goods worth about £1.8 billion entered the UK market last year. Of this, £299 million qualified for preferential treatment under the DCTS.
Only £207 million worth of eligible shipments actually claimed the tariff benefits, leaving £92 million outside the scheme.
Parker said the gap represents a significant opportunity for Philippine exporters to reduce tariff costs and improve their competitiveness in the UK, where demand for Philippine products remains strong.
“The recent DCTS reforms have made it easier than ever for Filipino firms to qualify for that zero percent tariff duty,” Parker was quoted as saying during a webinar on maximizing the scheme’s benefits.
The Philippines enjoys Enhanced Preferences under the DCTS, giving zero import tariffs on 92 percent of product lines. Exporters, however, must actively claim the preference, provide proof of origin, and meet applicable processing requirements.
Parker identified electronic equipment and machinery, bananas, plantains, pineapples, sustainable apparel, tuna, coconut products, and spectacles among Philippine products with further growth potential in the UK market.
The opportunity could expand further following DCTS reforms that took effect in January 2026.
Among the changes are more liberal rules of origin for garments and expanded regional cumulation covering 18 Asian countries, giving exporters greater flexibility in sourcing inputs from neighboring economies.
“Philippine exporters now have greater flexibility in sourcing inputs regionally,” Parker said.
For Philippine businesses, the figures point to a relatively straightforward opportunity. More exports are already reaching the UK, but a portion of those shipments is not taking advantage of the tariff preferences available to them.
With the DCTS offering potentially lower or zero tariffs, exporters that improve their understanding and use of the scheme could gain a pricing advantage while strengthening their foothold in the British market.
