Import duty on Indian textiles in the US, UK and EU is set by three things: the HS code of the product, the fibre and construction behind that code, and whether the goods qualify for a preferential rate under an origin rule. India trades with the US at normal MFN rates, while the EU and UK each run their own preference schemes that may or may not cover your line. There is no single rate for Indian textiles, and anyone who quotes you one without asking for the HS code is guessing.
This article explains how the number is arrived at so you can check your own landed cost before you place the order. Confirm the actual rate with your customs broker, since rates and scheme coverage change and nothing here is legal advice.
Start with the HS code
- Textiles sit in HS chapters 50 to 63. Chapters 50 to 60 cover fibres, yarns and fabrics, 61 and 62 cover knitted and woven garments, and 63 covers made-ups such as bed linen, towels and bags.
- Within a chapter, the code narrows by fibre (cotton, wool, man-made, blends), by construction (knitted or woven) and often by end use or gender for garments.
- The exporter's shipping bill and your import entry should carry the same code at the six-digit level. The last digits differ by country, so your broker assigns the destination-specific code.
- A wrong code is the most common cause of a duty surprise. A cotton-rich blend classified as cotton, or a knitted top declared as woven, can move the rate noticeably.
MFN versus preferential rates
Every destination publishes an MFN rate, which is the standard rate for any WTO member with no special arrangement. For the US this is the rate India pays, and it is what US Customs and Border Protection will assess unless a specific programme applies. The EU and UK add a layer of preference: the EU's Generalised Scheme of Preferences has given India reduced rates on some textile lines while others were graduated out, and the UK's Developing Countries Trading Scheme has its own list and conditions.
A preferential rate is only available if the goods meet the scheme's rules of origin and the right proof travels with the shipment. For textiles this often means the fabric or yarn stage must happen in India, not just the cutting and sewing. If the proof is missing or the product fails the origin test, you pay MFN.
Doing the landed-cost maths
Duty is normally charged on the customs value, which in the EU and UK is usually the CIF value (goods plus freight plus insurance to the border) and in the US is usually the value of the goods without international freight. Add duty to the customs value, then add import VAT where it applies, then your inland haulage, brokerage and any merchandise processing or port fees. The result is your landed cost per unit.
Build the calculation per HS code rather than per supplier, because one order can contain lines at different rates. Ask the exporter for the HS code on the proforma invoice and ask your broker to confirm the rate under MFN and under any preference you may qualify for. The difference between those two numbers tells you how much effort the origin paperwork is worth.
How we help
We ask every textile exporter for the HS code at quotation stage and check that the document pack matches the destination, including any origin form, before the container leaves. We supervise loading and send weekly updates so your broker has the paperwork before the vessel arrives. If you want a second pair of eyes on a landed-cost calculation, book a free 20-minute sourcing review.