From 1 January 2026 the UK's Developing Countries Trading Scheme has dropped the "double transformation" rule for clothing, a real, recurring advantage for Pakistani garment exporters selling into Britain.
What changed on 1 January 2026
The UK's Developing Countries Trading Scheme (DCTS), which replaced the UK's Generalised Scheme of Preferences on 19 June 2023, has just become more generous for clothing. From 1 January 2026 the UK liberalised the product-specific rules of origin for apparel (HS chapters 61 and 62), removing the "double transformation" requirement that previously obliged two significant manufacturing processes to take place inside the exporting country.
Under the new rules, Enhanced Preference countries, Pakistan among them, now receive the same treatment as the top Comprehensive Preference tier, and can source between 47.5% and 100% of a garment's inputs from another qualifying country for further manufacture. In practice, more Pakistani-made clothing qualifies for duty-free entry into the UK, with less restrictive paperwork.
Why it matters for Pakistan
Pakistan is one of the largest beneficiaries of the DCTS, accounting for roughly 11.8% of all UK imports made under the scheme. It sits in both the Enhanced Preferences tier and the 18-country Asia Regional Cumulation Group, which lets exporters combine inputs from across the region and still qualify.
The reform also cuts the rules-of-origin restrictiveness for textiles. By one published measure, it falls from 5.92 under the old GSP to around 3.02 under the DCTS, close to a 50% reduction. For UK buyers, that preferential, duty-free access is a recurring cost saving that lands directly in the delivered price.
The UK-Pakistan trade backdrop
The change lands as the trading relationship deepens. Total UK-Pakistan trade reached roughly £5.5 billion by November 2025, and the two governments held their first formal UK-Pakistan Trade Dialogue in 2025, agreeing to fast-track a trade mechanism and work through non-tariff barriers. Textiles and apparel remain the backbone of that relationship.
What buyers and exporters should do
Preferential access still depends on getting the documentation and origin right. Before relying on the new rules, check the essentials:
- Proof of origin: that the supplier can issue valid documentation under the UK's registered exporter (REX) system.
- HS code eligibility: that the specific garment's tariff code is covered.
- Regional cumulation: make use of the Asia group rules where inputs are sourced across multiple countries.
- Compliance standing: that the supplier upholds the labour and environmental standards the scheme is built around.
Getting started
The simplest way to capture the benefit is to source through an accountable partner who confirms eligibility and handles the origin paperwork end-to-end. Pak Textiles Global Partners sources garments from a vetted network of Pakistani manufacturers and delivers landed, on-spec and duty-optimised into the UK.
