UK DCTS: Vanuatu graduates to higher preference tier

# UK DCTS: Vanuatu Graduation Notice

On 9 June 2026, the UK Department for Business and Trade (DBT) published formal notice of Vanuatu's graduation within the Developing Countries Trading Scheme (DCTS). The scheme provides differentiated tariff concessions to developing nations; graduation to a higher tier typically reflects improved economic development status and adjusts the level of preferential access Vanuatu-origin goods enjoy when entering the UK market.

Who is affected

This change impacts:

• Exporters and manufacturers in Vanuatu shipping goods to UK importers
• UK importers receiving Vanuatu-origin merchandise
• Freight forwarders and customs brokers managing Vanuatu shipments

The graduated tier determines applicable tariff rates and rules of origin. Products claiming Vanuatu preference under DCTS must satisfy the scheme's origin criteria; higher-tier graduation may impose stricter rules of origin or adjust the duty relief available.

DCTS framework

The DCTS is the UK's autonomous preferential tariff arrangement for least developed countries (LDCs) and other developing nations. Graduation reflects Vanuatu's movement through the scheme's tier structure. The UK DBT administers DCTS independently following the UK's exit from the EU.

"This notice sets out the preference tier graduation of Vanuatu in the UK's Developing Countries Trading Scheme (DCTS)."

— UK DBT, 9 June 2026

What this means for shippers

Verify Vanuatu's new tier classification immediately to recalculate landed costs and duty liabilities on current and future shipments. Confirm which products and HS chapters qualify under the revised rules of origin and tariff schedule; failure to apply the correct preferential rate risks duty recalculation and penalties. Update origin certification and supplier documentation to reflect the new tier before your next Vanuatu import. Check HS codes and country-of-origin rules