EU duty on Indian garments is currently charged at the standard rate for most products, because India's GSP preferences on textiles and clothing were reported withdrawn from 1 January 2026. As of October 2026 the India-EU trade agreement has been concluded but not yet brought into force.
That gap matters for anyone pricing a garment order for delivery in the next year. This article explains what GSP is, what changed, and how to confirm the duty for your own product.
What is GSP and why did India lose it for garments?
The Generalised Scheme of Preferences gives developing countries reduced or zero EU import duty on some goods. It includes a graduation rule: when a country's exports of a product group to the EU stay above a set share for several years, preferences on that group are withdrawn.
India had already lost GSP on several product groups under earlier rounds. Industry and trade press reported that the scheme covering 2026 to 2028 withdrew the remaining preferences on textiles and clothing. India's commerce ministry described this as part of a long-running, rules-based process.
What duty applies to Indian garments now?
Without GSP, Indian garments pay the EU's standard (most-favoured-nation) duty for their tariff code. Those rates differ by product, and knitted and woven garments in the same fibre can sit in different chapters.
We do not quote rates here because they depend on the exact eight- or ten-digit code. Look up your code in the EU's TARIC database, or ask your customs broker, and confirm the rate on the day you place the order.
What does the India-EU trade agreement change?
Negotiations were announced as concluded on 27 January 2026, with reports that textile and clothing lines would move to zero duty. The agreement still needs ratification and entry into force, and reports suggested this may not happen before 2027.
Until it takes effect, the current duties apply. Our guide to what the India-UK and India-EU trade deals mean for textile duty sets out the timing and the conditions, and duty benefits for Indian textiles in the UK and EU covers how preferences are claimed.
How should you plan an order in the meantime?
Work from the duty that applies at the date of import, not the date the deal might start. Ask your broker whether a lower rate would apply if the agreement entered into force before your goods arrive, and what origin proof the exporter would need to issue.
Keep origin records from the start: yarn, fabric and cut-and-sew location. Preferential schemes depend on rules of origin, and records that are missing at shipment are hard to rebuild later.
Does the EU duty apply to samples and small orders?
Yes. Duty is charged on the customs value of the goods, whatever the quantity, and import VAT is charged on top by the member state. Sample parcels may be treated differently by some carriers, but you should assume that duty applies unless your broker confirms otherwise.
Value for customs purposes is usually the transaction value including freight and insurance to the EU border. That is why the trade term on your order, such as FOB or CIF, changes the dutiable amount even when the goods are identical.
Next step
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