How to legally reduce your apparel import duty

Import duty is often the most overlooked line in a brand’s cost — and one of the most controllable. On apparel it can run anywhere from ~10% to 30%+ depending on where you make it. Here are the legitimate levers to lower it.

1. Source from a duty-free / preferential country

The single biggest lever. Many markets grant duty-free access to garments from Least Developed Countries — e.g. the EU (EBA), UK (DCTS), and Canada (LDCT). A knit tee from Nepal enters those markets at 0% duty, versus ~12% from most countries. Choosing the sourcing country is duty strategy.

2. Understand rules of origin

Duty-free access depends on qualifying under rules of origin. LDCs typically get lenient “single transformation” — so a garment cut and sewn there qualifies even with imported fabric. Know the rule for your market before you commit.

3. Classify your product correctly

Duty rates vary by HS code. Small construction or composition differences can shift the classification (and the rate). Work with a customs broker to make sure you’re not overpaying on a mis-classification.

4. Keep your paperwork clean

Preferential rates require documentation — a valid Certificate of Origin (e.g. via REX for the EU). A good factory supplies this; without it, you pay full duty regardless of eligibility.

This is about using trade programs as intended — not dodging duty. Sourcing country + correct rules of origin + clean paperwork is where the legitimate savings are.

We supply the Certificate of Origin and help you source where the duty works in your favour. See the duty-free markets or tell us your destination.