Reclassified Bhutan's trade status and updated UK customs reference documents to introduce new commodity codes and adjust tariff quotas.
These Regulations reclassify Bhutan's status under the UK's trade preference systems and update several reference documents that define import duties, commodity codes, and tariff quotas.
The order moves Bhutan from the list of least developed countries to the list of other eligible developing countries, while also updating the Tariff of the United Kingdom and documents governing authorised use, steel quotas, and duty suspensions.
These changes apply to any persons or businesses importing goods into England, Wales, Scotland, and Northern Ireland, specifically affecting those dealing in machinery, electrical goods, and steel products.
Arguments For
The Secretary of State asserts that Bhutan has transitioned from a least developed country to a country with economic characteristics similar to other developing countries, based on United Nations and World Bank classifications.
The document states that the updates to tariff reference documents are necessary to create new commodity codes, remove redundant codes, and correct clerical errors such as inadvertent omissions.
The explanatory note claims the changes simplify reference documents to make them more user-friendly for importers and customs agents.
The Treasury and Secretary of State maintain that these regulations align with the UK's international arrangements and comply with the Taxation (Cross-border Trade) Act 2018.
Arguments Against
Legal observers might note that the rapid succession of version updates (some appearing non-sequential) could create administrative complexity for businesses trying to track current tariff rates.
Importers of goods from Bhutan may face different administrative requirements or altered duty structures as the country transitions from the "least developed" category to the "other eligible developing countries" list.
Although the document claims no significant impact, small businesses in the machinery and electrical sectors may need to review 28 new commodity codes to ensure accurate customs declarations.
Citation, commencement and extent
- -(1) These Regulations may be cited as the Customs (Tariff and Miscellaneous Amendments) (No. 6) Regulations 2026.
(2) These Regulations come into force as follows-
- (a) regulations 2 and 3 come into force on 14th December 2026;
- (b) all other provisions of these Regulations come into force on 1st October 2026.
(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.
This section establishes the official name of the regulations and their geographic reach across all parts of the United Kingdom.
It sets a bifurcated commencement schedule where general tariff document updates begin on 1 October 2026, while the specific changes regarding Bhutan's trade status take effect on 14 December 2026.
Amendments to Schedule 3 to the Taxation (Cross-border Trade) Act 2018
- In the Taxation (Cross-border Trade) Act 2018( a ), in Schedule 3 (eligible developing countries)-
- (a) in Part 2 (least developed countries), omit 'Bhutan';
- (b) in Part 3 (other eligible developing countries), in the appropriate place, insert 'Bhutan'.
This section modifies the primary legislation governing UK trade preferences by changing Bhutan's classification.
It removes Bhutan from the category of 'least developed countries' and places it into the category for 'other eligible developing countries,' which alters the legal basis for its trade treatment.
Amendment of the Trade Preference Scheme (Developing Countries Trading Scheme) Regulations 2023
- In the Trade Preference Scheme (Developing Countries Trading Scheme) Regulations 2023( b ), in Schedule 1, Part 1 (EP Countries), in the appropriate place, insert 'Bhutan'.
This provision updates the specific trade preference regulations to include Bhutan as an 'EP' (Enhanced Preference) country.
This designation determines the specific reduced rates of import duty applicable to goods originating from Bhutan under the UK's Developing Countries Trading Scheme.
Amendment of the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018
- In the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018( c ), in regulation 32(2) (authorised uses), for 'version 2.25', dated 26th May 2026' substitute 'version 2.26', dated 1st September 2026( d )'.
This section updates the reference to the 'Authorised Use' document, which lists goods eligible for specific customs procedures.
The new version (2.26) introduces 28 new commodity codes, primarily for machinery and electrical equipment, and corrects previous errors in the list of eligible goods.
Amendment of the Customs Tariff (Establishment) (EU Exit) Regulations 2020
- In the Customs Tariff (Establishment) (EU Exit) Regulations 2020( a ), in regulation 1(2) (citation, commencement and interpretation), in the definition of 'Tariff of the United Kingdom', for 'version 1.32, dated 25th May 2026' substitute 'version 1.34, dated 1st September 2026( b )'.
This section adopts a new version of the main UK Tariff document, which establishes the system for classifying goods and the standard rates of import duty.
The update modifies the structure and descriptions of commodity codes and removes two specific codes related to the steel trade.
Amendment of the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020
- In the Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020( c ), in regulation 20(4) (lower rate of import duty - goods declared for an authorised use procedure), for 'version 1.25', dated 26th May 2026' substitute 'version 1.26', dated 1st September 2026( d )'.
This regulation updates the document specifying lower import duty rates for goods declared under an 'authorised use' procedure.
The update ensures that the rates document matches the new commodity codes introduced in regulation 4, including 26 new codes and two description changes.
Amendment of the Customs (Tariff Quotas) (EU Exit) Regulations 2020
- In the Customs (Tariff Quotas) (EU Exit) Regulations 2020( e ), in regulation 2(1) (general interpretation), in the definition of 'Steel Quota Table', for 'version 1.0' dated 26th May 2026' substitute 'version 1.1' dated 1st September 2026( f )'.
This section updates the Steel Quota Table, which governs the volume of certain steel products that can be imported at reduced duty rates.
The new version (1.1) removes two commodity codes from the scope of these quotas.
Amendment of the Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020
- In the Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020( g ), in regulation 2 (interpretation), for the definition of 'Suspensions of Import Duty Rates Document' substitute-
''Suspensions of Import Duty Rates Document' means the document entitled 'Tariff Suspension Document, version 3.7' dated 1st September 2026( h );'.
This section implements a new version of the document that lists goods for which import duty has been temporarily suspended.
The new version (3.7) includes technical changes to commodity codes and corrects minor errors in the existing list of suspensions.
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