How to configure 2 dependent dropdowns

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Can anyone provide exact steps to create 2 dependent drop downs?

The requirement is to create custom BO having 2 fields Category and Sub-Category.

Sub-Category should depends from Category.

Here are Category values:

- UK

- USA

Here are Sub-Category values:

- London

- Liverpool

- Dallas

It should be possible to make sub-categories dependent from Category. For example it should be possible to choose only London and Liverpool in case category is UK.

Here are how I tried to implement this.

Within custom BO created 2 fields.

1) element Category : CategoryListCode; - based on static Code List.

2) element SubCategory: SUBCATEGORYCode; - created based on Business Configuration Object and Business Configuration Set.

In the UI designer I was using Codelist Context Mapping in order to constrain Sub-Category with Category.

I do not see any errors, but Sub-Category field always empty. Could you please help to figure out?