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

Buying from Nepal into United Kingdom

Duty-free knitwear for UK buyers: made in Nepal, 0% under DCTS

Duty-free Developing Countries Trading Scheme (DCTS) – Comprehensive Preferences From Nepal: 0% Standard cotton tee: 12% UK Integrated Online Tariff (source: Commodity 6109100010 – T-shirts of cotton (third-country duty and DCTS rates), opens in a new tab)

Does imported fabric still qualify?

Under the DCTS product-specific rules for Chapters 61 and 62, garments from Comprehensive Preferences (LDC) countries need only one significant process, such as cutting and sewing, in a DCTS country, so imported fabric, including Chinese fabric, can be used. From 1 January 2026 the UK extended the same garment rules to the Enhanced Preferences tier. Confirm the exact rule for any unusual HS line. GOV.UK (source: Update: improved rules of origin under the DCTS are now in effect (1 January 2026), opens in a new tab) GOV.UK (source: How to claim preferences under the Developing Countries Trading Scheme (DCTS) – Form A or origin declaration, opens in a new tab)

What you receive and use at import

Why United Kingdom buyers work with us

01

The short version

  • 1,000 pieces minimum per style and colour — test a fit or a colour without committing to a container
  • 0% UK import duty under DCTS, with the origin statement on our invoice
  • 150+ machines on a dedicated knit floor in Gaindakot
  • 26,000–30,000 pieces a month — room to grow into, small enough that your order matters

02The duty position

0% into the UK under DCTS

Nepal ships duty-free into the UK under the Developing Countries Trading Scheme, against a standard rate of around 12% on knitwear. As a REX-registered exporter, we put the statement on origin on every commercial invoice.

Nepal’s graduation from least-developed-country status is scheduled for 24 November 2026, with a deferral to 2029 requested; the UK then allows about three years’ transition. We are glad to set out our exact origin position in writing for your compliance team.

One honest note: if you currently buy from Bangladesh, Cambodia or another least-developed country, you may already enter the UK at 0% — so duty may not be the reason to move. Minimum order quantity and a straight answer the same day usually are.

03What we make

Knit, and only knit

  • Poly-cotton polos — the schoolwear and corporate staple
  • Crew-neck and V-neck sweatshirts, fleece-back or French terry
  • PE tees, crew tees and long-sleeve jersey
  • Heavyweight hoodies for streetwear
  • Tank tops and knit shorts
  • Poly-spandex activewear, graded in-house on Optitex

04The actual floor

Our own photographs, not stock images

A 150+-machine knit floor in Gaindakot — around 80% women, all local and permanent. You are welcome to visit, or to see the line live on a video call.

05Where we stand

What we hold today — and what we don’t

We are a young factory and we would rather tell you plainly than have you find out on email three. We hold an EXIM code as a registered exporter and are REX-registered. Every order is inspected to AQL 2.5, or to your specified level, and buyer-appointed third-party inspection is welcome.

We do not yet hold BSCI, SMETA or GOTS. If certification is a hard requirement for your first order, tell us and we will say honestly whether we can meet your timeline.

Payment is on staged terms, and we work with L/C for larger orders — balances against inspection and shipping documents, so your money tracks real progress. Decoration (print and embroidery) is arranged through trusted partner decorators, coordinated by our team.

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 United Kingdom: 12% · from Nepal: 0%

You keep, per year

$7,680

Per piece
$0.38
Per order
$1,920
How importing into United Kingdom 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 United Kingdom buyers

Straight answers.

Are T-shirts from Nepal duty-free in the UK?
Yes. Nepal is in the DCTS Comprehensive Preferences tier, and garments meeting DCTS rules of origin enter at 0% instead of 12%. UK import VAT is still payable.
Do you need to be REX-registered for the UK?
No. The UK accepts an origin declaration on the invoice from any exporter in a beneficiary country. We are REX-registered for the EU anyway.
Is Form A still accepted?
Yes, HMRC still accepts Form A for DCTS as an alternative to the invoice origin declaration, and it does not need an official stamp.
What happens after Nepal’s LDC graduation?
Nepal stays in Comprehensive Preferences for three years after graduation, then moves tier. Because Enhanced Preferences also show 0% on these knitwear lines and share the same garment rules since January 2026, we do not expect duty to rise, but we will confirm when the UK publishes Nepal’s tier decision.
Can we relabel blanks with our own brand?
Yes. We can supply blanks or private-label garments. Origin remains Nepal, and the “Made in Nepal” information must stay accurate.

Guides for United Kingdom 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 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
  2. 02 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
  3. 03 Update: improved rules of origin under the DCTS are now in effect (1 January 2026) GOV.UK – Department for Business and Trade · official · checked 24 Sept 2026
  4. 04 Preference tier graduation: Bhutan (three-year DCTS transition after UN LDC graduation) GOV.UK – Department for Business and Trade · official · checked 24 Sept 2026
  5. 05 How to claim preferences under the Developing Countries Trading Scheme (DCTS) – Form A or origin declaration GOV.UK – HMRC · official · checked 24 Sept 2026
  6. 06 Using an origin declaration for the Developing Countries Trading Scheme GOV.UK – HMRC · official · checked 24 Sept 2026
  7. 07 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
  8. 08 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
  9. 09 Nepal Foreign Trade Statistics 2083 (readymade garment exports FY 2082/83: Rs 9.30 billion) Trade and Export Promotion Centre (TEPC), Government of Nepal · official · checked 24 Sept 2026
  10. 10 Commodity 6109100010 – T-shirts of cotton (third-country duty and DCTS rates) UK Integrated Online Tariff · official · checked 24 Sept 2026
  11. 11 Nepal – graduation status (scheduled 24 November 2026; 2026 extension request, CDP and ECOSOC) United Nations – LDC Portal · official · checked 24 Sept 2026
  12. 12 Nepal will seek delayed LDC graduation citing economic constraints (16 May 2026) The Kathmandu Post · checked 24 Sept 2026
  13. 13 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 United Kingdom? 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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