Duty-free to the EU, UK & Canada — and the lowest US tariff in South Asia
0% import duty, market by market
Because Nepal is a Least Developed Country (LDC), garments cut and sewn here qualify for preferential, often zero, import duty in major markets — under “single transformation” rules, meaning your goods count as Nepal-made even though the fabric is imported. We supply the Certificate of Origin. Here is what that means market by market.
| Market | Scheme | Rate | Rule of origin |
|---|---|---|---|
| European Union | Everything But Arms (EBA) | 0% duty | Single transformation — imported fabric qualifiesStandard EU (MFN) duty on cotton knit t-shirts is ~12%, so this is a direct landed-cost advantage. |
| United Kingdom | DCTS — Comprehensive Preferences | 0% duty | Single transformation (2025 liberalisation)Same duty-free access as the EU for LDC garments. |
| Canada | LDCT | 0% duty | Cut/sewn/knit in an LDC qualifies — even with foreign fabric (from Jan 2025)The most fabric-friendly rule of the three. |
| Japan | LDC preferential tariff | 0% duty | LDC single-stage rule — imported fabric qualifiesMFN duty on knit tees is ~9%. Secondary market — ask us to confirm your HS line. |
| Australia | LDC tariff (ASTP) | Conditional | Requires ≥50% local content — imported-fabric garments may not qualifyAustralia’s MFN duty is only ~5%. Because our fabric is imported, 0% is not automatic — ask us to verify eligibility for your product before relying on it. |
| United States | No duty-free — stated plainly | Standard MFN | GSP lapsed since 2020 (and excludes apparel); Nepal Trade Preference Program expired Dec 2025No preferential access for knit garments. MFN duty on knit tops is significant and 2026 trade measures keep shifting — ask us and we’ll quote the real landed cost. |
Duty rates and rules of origin depend on your market and your product’s exact HS code, and LDC preferences change over time. Treat the above as guidance — tell us your destination country and product and we’ll confirm precisely what applies to your order.
Duty-savings calculator
Pick your market and where you produce today — see what duty-free Nepal sourcing could save you, then get an exact quote. Honest: if you already source duty-free, it says so.
Sourcing from China into European Union you pay 12% duty. Made in Nepal, the same garments enter at 0% — even with imported fabric, under single-transformation rules. That's $60,000/yr back in your margin.
Want the exact landed-cost breakdown for your styles?
Get a quote on WhatsApp →Nepal vs the other sourcing origins
How Nepal compares with the other big sourcing origins — import duty on a cotton knit t-shirt (HS 6109.10) landing in the EU and UK. We show the countries that tie us, too; a table where every rival loses isn’t worth trusting.
The shift buyers are missing: India lost its EU GSP preference on 1 January 2026, so Indian knitwear now pays the full ~12% into the EU — while Nepal stays at 0%.
| Origin | EU duty | UK duty | Basis / preference |
|---|---|---|---|
| Nepal | 0% | 0% | EBA / DCTS — LDC, single transformation (imported fabric qualifies) |
| India | 12% | 0%† | EU: full MFN — GSP withdrawn Jan 2026. UK: CETA (2025). |
| Bangladesh | 0% | 0% | EBA / DCTS — LDC (also graduating 2026) |
| Vietnam | 0% | 0% | EVFTA / CPTPP — stricter yarn-forward rules of origin |
| China | 12% | 12% | MFN — no preferential access |
Bangladesh and Vietnam also reach 0% into the EU and UK — we won’t pretend otherwise. Our edge over them is genuinely low MOQs, dedicated (not overbooked) capacity, and the single-transformation rule that lets your imported fabric still qualify as Nepal origin.
The United States: no duty-free access for Nepal, and 2026 reciprocal tariffs are shifting — so we don’t publish a fixed US number here. Nepal still carries among the lowest US tariffs in South Asia. Tell us your product and we’ll confirm the current landed cost.
† UK–India CETA was signed in 2025; confirm it is in force for your shipment date.
Duty rates are approximate, for knitted cotton t-shirts (HS 6109.10), verified July 2026, and for general guidance only. Applicable duty depends on exact HS classification, rules of origin, and current trade measures — which change frequently, and US reciprocal tariffs in particular are in flux in 2026. Confirm current landed duty with your customs broker before ordering.
Roughly a 12% head-start into Europe
On a cotton knit t-shirt, an EU importer pays the standard ~12% MFN duty when sourcing from most countries — but 0% from Nepal under EBA. That’s a direct landed-cost advantage before you’ve negotiated a single price, with the same duty-free access into the UK and Canada.
Lock it in before the rules tighten
Nepal is currently scheduled to graduate from LDC status on 24 November 2026 — but in May 2026 Nepal formally requested a further three-year deferral, and the UN Committee for Development Policy has recommended granting it. The General Assembly has not yet ruled, so treat the date as live rather than settled. Either way, the EU and UK both grant a three-year smooth transition that runs from the actual graduation date, so EU/UK duty-free access holds to roughly 2029 at the earliest. Canada is the exception: it offers no automatic transition period, though in practice it has taken a year or more to formally withdraw LDCT after a country graduates. After transition, access shifts toward standard GSP with stricter “double transformation” rules — under which imported fabric may no longer qualify. Translation: there’s a real window now, and we’ll help you plan for the change.
More reasons buyers choose Nepal
Duty-free access to the EU, UK & Canada
As a Nepal-based LDC producer, our t-shirts and polos qualify for 0% import duty into the EU (Everything But Arms), the UK (DCTS), and Canada (LDCT) under single-transformation rules — so they count as Nepal-made even though the fabric is imported, and we supply the Certificate of Origin.
A straight answer on the US market
We won’t oversell this one. Nepal has no duty-free access to the US for knit garments — the Nepal Trade Preference Program expired at the end of 2025, and US GSP has been lapsed since 2020 and excludes apparel in any case. US buyers pay standard MFN duty, which on knit tops is significant, plus whatever trade measures are current. Tell us your product and we’ll quote the real landed cost rather than a headline number.
Competitive labor — without the queue
Nepali production costs sit below India, Vietnam, and China. And because we’re not overbooked like the mega-factories, you get dedicated capacity, faster scheduling, and direct attention on every order.
Genuinely low MOQs
Built for growing and emerging brands — start small and scale as you grow, with flexible minimums and adaptable timelines.
Ethically made, transparently
Fair wages, safe conditions, and a strict no-child-labor policy on our own floor — with social-compliance auditing in progress. Clear English communication from sample to shipment.
Landlocked isn’t a problem
Gaindakot sits on Nepal’s main east–west highway with direct road links to the Indian border and the Kolkata/Vizag seaports. Bulk moves by sea from there; samples and urgent runs go by air. Export documentation and duty management are handled for you — it’s a well-trodden route, not a complication.
What importers ask us
Tell us your market — we’ll confirm your duty
Share your destination country and product, and we’ll confirm exactly what duty applies and quote your program.