REX registered 0% duty into the EU, UK, Canada & Japan — see current status

Buying from Nepal into Canada

Duty-free knitwear for Canadian buyers: 0% under LDCT

Duty-free Least Developed Country Tariff (LDCT) From Nepal: 0% Standard cotton tee: 18% Canada Border Services Agency (source: Customs Tariff 2026 – Chapter 61 (MFN 18%; LDCT Free), opens in a new tab)

Does imported fabric still qualify?

Under the GPT, GPT Plus and LDCT Rules of Origin Regulations (SOR/2023-210), in force since 1 January 2025, apparel is LDC-originating if it is cut, or knit to shape, and sewn or otherwise assembled in the LDC; only the fabric that determines classification is considered, and its origin does not matter. T-shirts fall under a separate list that requires only sewing or assembly in the LDC. This replaced the older rule that tied LDCT apparel to fabric and value-added conditions, so imported Chinese fabric now qualifies. Goods must be shipped directly to Canada; transhipment is allowed with documents showing the route. Justice Laws Website, Government of Canada (source: General Preferential Tariff, GPT Plus and Least Developed Country Tariff Rules of Origin Regulations (SOR/2023-210), opens in a new tab) Canada Border Services Agency (source: Customs Notice 24-41: Canada’s unilateral tariff preference programs for imports from developing countries, opens in a new tab) +1

What you receive and use at import

Why Canada buyers work with us

Fabric origin no longer matters

Since January 2025 Canada treats apparel cut and sewn in an LDC as originating regardless of where the yarn and fabric came from. Justice Laws Website, Government of Canada (source: General Preferential Tariff, GPT Plus and Least Developed Country Tariff Rules of Origin Regulations (SOR/2023-210), opens in a new tab) Canada Border Services Agency (source: Customs Notice 24-41: Canada’s unilateral tariff preference programs for imports from developing countries, opens in a new tab)

Low MOQ for Canadian brands

MOQ of 1,000 pieces per style per colour; samples 7–14 days; bulk 40–50 days.

Margin calculator

What does 0% duty put back in your margin?

Example FOB prices are illustrative, not our quote. Duty is charged on customs value (usually CIF in the EU/UK, FOB in Canada and the US), so real savings are often slightly higher. Rates verified 2026-09-24; confirm your HS line with your customs broker.

Standard duty into Canada: 18% · from Nepal: 0%

You keep, per year

$11,520

Per piece
$0.58
Per order
$2,880
How importing into Canada works →
Minimum order
1,000
Per style / colour · flexible per programme
Sampling
7–14
After tech-pack review
Bulk lead time
40–50
After sample approval
Monthly capacity
26–30k
Knit basics · confirmed per programme

Questions from Canada buyers

Straight answers.

Is clothing from Nepal duty-free in Canada?
Yes, under the Least Developed Country Tariff, if the garments meet the LDCT rules of origin and are supported by Form B255. GST/HST still applies at import.
Does Chinese fabric disqualify the garment?
Not since 1 January 2025. Canada’s current rules confer origin where apparel is cut and sewn in the LDC, regardless of fabric origin.
Which origin document do we need?
CBSA Form B255 (Certificate of Origin – Textile and Apparel Goods Originating in a Least Developed Country), completed by us as exporter.
What happens after Nepal graduates?
Canada keeps LDCT benefits for three years after the UN status change. After that, apparel would be expected to pay the MFN rate unless policy changes.

Guides for Canada importers

Sources & last verified

Page facts checked

We link every trade claim to the body that publishes it — official sources first. Rules change; if you spot something out of date, tell us.

  1. 01 Customs Tariff 2026 – Chapter 61 (MFN 18%; LDCT Free) Canada Border Services Agency · official · checked 24 Sept 2026
  2. 02 Customs Notice 24-41: Canada’s unilateral tariff preference programs for imports from developing countries Canada Border Services Agency · official · checked 24 Sept 2026
  3. 03 Memorandum D11-4-4: Rules of origin respecting the GPT and LDCT (Form B255 for textiles and apparel) Canada Border Services Agency · official · checked 24 Sept 2026
  4. 04 Canada’s unilateral tariff preference programs for imports from developing countries (LDCT renewed to 2034; three-year post-graduation transition) Department of Finance Canada · official · checked 24 Sept 2026
  5. 05 The EU’s renewed GSP scheme: key updates for 2027 (Regulation (EU) 2026/1395; EBA for 2026 graduates at least until end-2029) European Commission – Access2Markets · official · checked 24 Sept 2026
  6. 06 Preference tier graduation: Bhutan (three-year DCTS transition after UN LDC graduation) GOV.UK – Department for Business and Trade · official · checked 24 Sept 2026
  7. 07 General Preferential Tariff, GPT Plus and Least Developed Country Tariff Rules of Origin Regulations (SOR/2023-210) Justice Laws Website, Government of Canada · official · checked 24 Sept 2026
  8. 08 India, Nepal ink deal to boost rail trade connectivity (Kolkata and Visakhapatnam cargo access) Press Information Bureau, Government of India · official · checked 24 Sept 2026
  9. 09 Treaty of Trade, Treaty of Transit and related agreements (Kolkata/Haldia transit arrangements) Trade and Export Promotion Centre (TEPC), Government of Nepal · official · checked 24 Sept 2026
  10. 10 Nepal – graduation status (scheduled 24 November 2026; 2026 extension request, CDP and ECOSOC) United Nations – LDC Portal · official · checked 24 Sept 2026
  11. 11 Nepal will seek delayed LDC graduation citing economic constraints (16 May 2026) The Kathmandu Post · checked 24 Sept 2026
  12. 12 LDC graduation extension: ECOSOC recommends UNGA to take decision on Bangladesh, Nepal (July 2026) UNB (United News of Bangladesh) · checked 24 Sept 2026

Namaste — let’s talk

Sourcing for Canada? Let’s cost it properly.

Send a tech pack, a photo or just an idea. You’ll hear back from the people who run the floor — usually within 24 hours, Nepal time.

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