UK importers are getting a New Year tariff reset. The Treasury’s Customs (Tariff and Miscellaneous Amendments) (No. 4) Regulations 2025 (S.I. 2025/1289) were made on 9 December, laid before the House of Commons on 10 December, and come into force on 1 January 2026. The package tweaks DCTS rules of origin for textiles, raises a sugar tariff quota, updates ‘authorised use’ relief for aerospace parts and refreshes multiple preferential tariff documents.

Why it matters is straightforward: duty rates and origin proofs shape landed costs, margins and sourcing options. Retailers, food manufacturers and defence supply chains will feel the earliest effects. The Department for Business and Trade notes no significant overall impact in the instrument, but operational details are where costs move for SMEs and large importers alike.

Textiles first. For Chapters 61 and 62, the DCTS rules now confirm that sewing together pre‑cut or pre‑made pieces is sufficient processing in least developed countries. Crochet is recognised alongside knitting, dyeing is added for qualifying operations on certain goods, and man‑made staple fibres are aligned with the spinning route. In practice, there are more ways for garments to meet preference without relocating the full manufacturing chain.

The regime also separates conditions by preference tier. Part 3 is signposted “SP countries only” for standard preferences, while a new Part 4 sets tests for enhanced preference (EP) countries. Several alternatives allow up to 75% non‑originating content by value, or combine spinning or dyeing with knitting or crochet for goods knitted or crocheted to shape. Expect fewer consignments to miss preference because a single process fell short.

A simple example helps. A UK high‑street knitwear line sourced from an EP country using imported yarn can now qualify where the supplier dyes the yarn and knits to shape, meeting one of the new alternatives. Finance teams should rerun duty‑paid costings and update supplier declarations for spring and summer ranges.

Cumulation becomes more usable. The instrument consolidates the two existing intra‑regional cumulation groups into one and adds a new group under regulation 18 of the DCTS origin rules. For manufacturers splitting processes across neighbouring countries, this widens the scope to treat inputs as originating and keep preference intact.

Eligibility also shifts. The economic vulnerability test that underpins EP status gains a second limb: countries with a share of global goods exports below 0.85% can qualify, alongside those whose seven largest DCTS sections account for over 75% of EP‑goods exports to the UK. Separately, Vanuatu is removed from the LDC list and added to other eligible developing countries and to the EP list, reflecting UN and World Bank classifications.

On commodities, the Quota Table moves to version 4.4 with an increase to autonomous tariff quota 05.7713 for sugar, effective from 1 January 2026. For refiners and food manufacturers, that means more volume at a reduced or nil rate, typically administered on a first‑come, first‑served basis. Procurement teams may wish to front‑load early‑quarter draw‑downs to secure allocation.

Aerospace sees a targeted change. The ‘authorised use’ reference moves to version 2.22, extending relief to certain aircraft components for participants in the New Joint Strike Force Fighter Production, Sustainment and Follow‑On Development MOU (New JSF PSFD MOU). HMRC also makes tidy‑ups to codes for aluminium tubes and pipes and mineral oils, and clarifies that the steel description includes products transformed from hot‑rolled sheet and strip.

Preferential trade documents are refreshed for Australia, New Zealand, Turkey, Lebanon, Switzerland and Liechtenstein, the Faroe Islands, CPTPP and the United States Economic Prosperity Deal, mostly dated 26 November 2025. Highlights include a Faroe Islands decision lifting the annual fish‑feed quota to 20,000 tonnes and an Eastern and Southern Africa States decision granting a derogation from rules of origin for preserved tuna and tuna loins. ERP and customs brokers should align to the new versions before year‑end.

Suspensions and the core Tariff are updated too. The Tariff Suspension Document becomes version 3.2, extending some suspensions and correcting errors. The Tariff of the United Kingdom is updated to version 1.29 with technical fixes for clarity. Classification drives duty; even small code edits can move rates, so refresh mappings for live SKUs.

The timeline is tight. With go‑live on 1 January 2026, importers should confirm HS codes against the updated Tariff, refresh supplier origin statements under the revised DCTS tests, diarise the sugar quota opening, and review authorised‑use approvals where aerospace is in scope. Brokers can file on the new basis; finance directors should bank any duty savings into 2026 budgets.