Import Duties and Taxes for Clothing by Country: 2026 Guide for China Sourcing

When you source clothing from a Chinese manufacturer, import duties and taxes are the single largest cost you cannot negotiate away with your factory. Factory gate prices are just the starting point – what you actually pay at the border determines your real landed cost and, ultimately, your margin.

Here is the reality for 2026: the global trade landscape has shifted dramatically. The United States added a 10% global tariff under Section 122. The UK finalized its post-Brexit tariff schedule. The EU adjusted its GSP program. Australia’s ChAFTA continues offering duty-free access for China-origin apparel. Missing any of these changes means overpaying by thousands of dollars per shipment.

This guide breaks down exactly what you owe at the border in 2026 for clothing imported from China – country by country, rate by rate, document by document. If you work with a Chinese manufacturer, this is your reference.

How Import Duties Work – From a Factory Perspective

Chinese manufacturers typically quote FOB (Free on Board) prices. That is the cost of goods loaded onto the vessel at the Chinese port. Everything after that – ocean freight, insurance, destination customs clearance – is your responsibility as the importer. And your country’s customs authority calculates duties based on CIF value (Cost, Insurance, Freight), not FOB.

CIF value = FOB price + ocean freight + insurance

Customs then multiplies the CIF value by the applicable duty rate. On top of that, most countries add VAT or GST on the total (CIF + duty). The result is compound taxation – you pay tax on top of duty.

A concrete example: you import $10,000 FOB of men’s cotton shirts from Guangzhou. Ocean freight is $1,200, insurance is $200. CIF = $11,400. At 16.5% US duty, that is $1,881 in duties. At 20% VAT (UK), that is another $2,656 on top. Total border charges: $4,537 on a $10,000 order.

This is why duty rates matter far more than a 1-2% factory price difference. A 5% duty rate swing on a $50,000 shipment is $2,500 – more than most brand owners save by negotiating.

HS Codes for Clothing Imports

Every clothing product has an HS code – a six-digit international classification that determines its duty rate. Chapters 61 (knitted/crocheted garments) and 62 (woven garments) cover most apparel. The first six digits are harmonized globally; countries add digits for their own tariff lines (HTS in the US, TARIC in the EU, UKGT in the UK).

Getting the HS code right is the single most important step for accurate duty calculation. A cotton t-shirt (HS 6109.10) and a synthetic fiber t-shirt (HS 6109.90) may fall under different rates. The same applies to fabric composition: 100% cotton vs. cotton-polyester blends vs. 100% polyester – each has its own code and rate.

Your Chinese factory’s commercial invoice should include the HS code they export under. Do not assume this code is correct for your destination country. Chinese export HS codes sometimes differ from import HS codes in your country. Always cross-check against your destination’s tariff schedule.

Common HS codes for apparel imports from China:

When in doubt, request a binding tariff ruling from your country’s customs authority. This gives you legal certainty on classification and rate.

United States 2026 – Section 301 Still Bites, Section 122 Adds More

Importing clothing from China to the United States in 2026 means dealing with three layers of duties: base MFN rates, Section 301 tariffs, and the new Section 122 global tariff.

Base MFN rates for apparel range from 6% to 20%, with most cotton garments falling around 16.5% and synthetics around 14-15%. These are the standard WTO rates.

Section 301 tariffs (originally imposed in 2018-2019) remain in effect for China-origin goods. Most apparel falls under List 4A (7.5% additional) or List 3 (25% additional). The exact amount depends on the product’s specific HTS code. Combined with base rates, China-origin clothing effectively faces 22-32% total duty.

Section 122 tariff – a 10% global tariff imposed in 2025 on all imports – applies on top of both base and Section 301 rates. This means China-origin apparel effectively faces base MFN + Section 301 + Section 122. Important: Section 122 expires on July 24, 2026, unless renewed. If you are importing after that date, confirm its status.

A practical example: importing $10,000 CIF of cotton t-shirts (base rate 16.5% + Section 301 at 7.5% + Section 122 at 10%) = 34% total duty rate. That is $3,400 in duties on $10,000 CIF. Before Section 122, it would have been $2,400. The difference is $1,000 per $10,000 shipment.

De minimis rule: shipments valued under $800 enter duty-free. However, this exemption applies per person per day, and customs has been tightening enforcement for commercial shipments split into multiple sub-$800 parcels. Do not rely on de minimis for regular commercial orders.

What to do: work with a customs broker who specializes in China-origin apparel. They can verify whether your specific HTS code qualifies for Section 301 exclusions (some are still active) and help you structure shipments correctly.

United Kingdom – UKGT at 12% with DCTS Options

The UK’s independent tariff system, the UK Global Tariff (UKGT), applies 12% duty to most apparel imports from China. In addition, 20% VAT applies on the total CIF value plus duty.

However, the UK offers the Developing Countries Trading Scheme (DCTS), which provides reduced or zero duty for certain countries. China is a lower-middle-income DCTS beneficiary, meaning some products may qualify for reduced rates. Clothing is generally excluded from full preferences, but checking the latest DCTS product list is worthwhile – specific categories do qualify.

The UK is also a signatory to the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership), which China has applied to join. If China successfully accedes, preferential rates could apply. As of June 2026, China’s accession is under negotiation but not yet in effect – monitor this for future savings.

VAT registration: you must register for UK VAT if your imports exceed £85,000 annually. VAT is paid at the border but can be reclaimed on your VAT return. Many importers use a Postponed VAT Accounting (PVA) scheme, which lets you declare and reclaim VAT on the same return – avoiding cash flow impact.

A sample calculation: $10,000 CIF of woven shirts at 12% UKGT = $1,200 duty. Customs value for VAT = $11,200. 20% VAT = $2,240. Total border charges = $3,440.

European Union – TARIC 12% MFN, GSP Changes Ahead

The EU applies duty rates under its TARIC system, with most apparel from China facing 12% MFN rates. Import VAT varies by member state – from 17% (Luxembourg) to 27% (Hungary), with major markets like Germany (19%), France (20%), and Italy (22%) in between.

GSP (Generalized System of Preferences) changes are significant for 2026. The EU’s new GSP regulation (effective 2024-2026 transition, full implementation by 2027) adjusts country classifications. China lost most GSP benefits years ago due to its World Bank income status, so standard MFN rates apply to China-origin apparel. However, GSP+ and EBA (Everything But Arms) benefits apply to other Asian manufacturing countries – Bangladesh, Cambodia, Myanmar, and Pakistan may qualify for reduced rates.

The EU is progressively increasing environmental requirements. The EU Strategy for Sustainable and Circular Textiles introduces design standards that may affect customs classification and duty rates for non-compliant products. Importers should verify that China-sourced apparel meets EU environmental labeling requirements.

De minimis: the EU applies a €150 threshold for duty-free imports. VAT still applies to all commercial imports regardless of value. For e-commerce B2C shipments under €150, customs duties are waived, but VAT collection is mandatory through the Import One-Stop Shop (IOSS) scheme.

Australia – ChAFTA Keeps It at 0%

Australia is the most favorable market for importing clothing from China, thanks to the China-Australia Free Trade Agreement (ChAFTA).

Under ChAFTA, apparel imports from China face 0% duty, provided you have the correct Certificate of Origin (CO) from the Chinese manufacturer. Without ChAFTA preference, standard rates range from 5% to 10%. With ChAFTA: zero.

GST applies at 10% on the total CIF value. Customs duties are $0 under ChAFTA, so GST is calculated on CIF only.

De minimis: shipments valued under AU$1,000 AUD enter duty-free and GST-free. This is the highest threshold of any major market – useful for sample shipments and small test orders.

Documentation requirements for ChAFTA: your Chinese manufacturer must provide a ChAFTA-specific Certificate of Origin (not a standard CO). The CO must be issued by an authorized Chinese body (CCPIT or AQSIQ). Some factories charge a small fee (usually $30-$50) for ChAFTA COs. Always confirm this before production starts – a standard CO will not qualify for zero duty.

Factory Documentation Your Manufacturer Must Provide

Your Chinese factory’s documentation is the foundation of your customs clearance. Missing or incorrect documents cause delays, fines, or complete shipment rejection.

Every shipment must have:

Faktura handlowa – issued by the factory. Must include: seller and buyer details, HS code (at least 6 digits), quantity, unit price, total value, currency, Incoterm (FOB/CIF/EXW), country of origin, and product descriptions matching the packing list.

Lista pakowania – itemizes cartons with weight, dimensions, and contents per carton. Must match the commercial invoice exactly. Discrepancies between invoice and packing list are a top reason for customs holds.

Bill of Lading (BOL) / Air Waybill (AWB) – shipping document issued by the carrier. Confirms goods were loaded and transported. Used by customs to verify arrival details.

Certificate of Origin (CO) – required for claiming preferential duty rates under free trade agreements. For ChAFTA, this must be the specific ChAFTA CO. For GSP, the GSP Form A. For standard shipments under MFN rates, a generic CO may be required by the destination country.

Additional documents your factory may need to provide:

• Fumigation Certificate – required if wooden pallets or crates are used (ISPM-15 compliant)
• Laboratory Test Reports – fabric composition testing, especially for blended fabrics, to verify HS code classification
• Fiber Content Labels – compliance with destination country labeling laws (US FTC, UK, EU regulations)
• Wash Care Labels – required by all major markets

Pro tip: request a document checklist from your Chinese factory 2 weeks before shipment. Guangzhou-based manufacturers with export experience will have these ready. Newer or smaller factories may need guidance. Our guide to red flags in clothing manufacturers covers what documents to look for.

FOB vs CIF vs EXW – How Incoterms Affect Duty Calculations

The Incoterm you choose with your factory changes the customs value your country uses for duty calculation. This is a nuance many new importers miss.

FOB (Free on Board) – the factory’s price includes loading onto the vessel at the Chinese port. Your customs value = FOB price + ocean freight + insurance. The factory’s responsibility ends at the port.

CIF (koszt, ubezpieczenie, fracht) – the factory’s price includes ocean freight and insurance to the destination port. Your customs value = the CIF price itself (freight and insurance are already included). Customs uses the same CIF value.

EXW (Ex Works) – the factory’s price is for goods only, picked up at their factory door. Your customs value = EXW price + all domestic transport to port + ocean freight + insurance. This is the most complex to calculate because you must track all internal China logistics costs.

The key insight: customs calculates duties on the CIF value, regardless of which Incoterm you use. If you buy FOB, you must add freight and insurance to reach the CIF value. If you buy CIF, the CIF value is already stated. If you buy EXW, you must account for everything.

Understanding Incoterms is critical for accurate cost estimation. See our complete guide to Incoterms for clothing imports for more.

Calculating Total Landed Cost

Landed cost is the sum of everything – factory price, freight, insurance, duties, taxes, and broker fees. Here is a fill-in-the-blanks template for any shipment from China:

Total border charges = duty + VAT/GST + broker fee

For a $10,000 FOB shipment of trousers to the UK:

• CIF = $10,000 + $1,200 freight + $200 insurance = $11,400
• Duty at 12% = $1,368
• Customs value = $11,400 + $1,368 = $12,768
• VAT at 20% = $2,554
• Broker fee = $250
• Total border charges = $4,172

Your true landed cost = $10,000 (FOB) + $1,200 (freight) + $200 (insurance) + $4,172 (border charges) = $15,572.

For a detailed breakdown of all cost components, read our landed cost guide for clothing importers.

Duty Reduction Strategies for China Sourcing

You cannot avoid duties entirely, but you can reduce them legally through several strategies:

Use free trade agreements. ChAFTA gives you 0% duty for Australia. The UK’s DCTS offers reduced rates on some categories. Always check whether your product qualifies before paying full MFN rates.

Verify HS code classification. A difference of one digit can change a duty rate by 5-10%. Have a licensed customs broker review your classification, especially for blended-fabric garments where classification is subjective. Never deliberately misclassify – that is fraud – but ensure you are using the most accurate code.

Check Section 301 exclusions. The US periodically issues exclusions to Section 301 tariffs for specific HTS codes. As of 2026, some apparel exclusions are still active. A customs broker with China expertise can check your HTS code against the current exclusion list.

Monitor Section 122 expiry. If the 10% global tariff expires on July 24, 2026, and is not renewed, your US duty rates drop significantly. Time your larger shipments accordingly.

Use duty drawback. If you import goods into the US and later export them, you can reclaim up to 99% of duties paid. This is most relevant for importers who re-export finished goods to other markets.

Consolidate shipments. Broker fees are per-customs-entry. Fewer, larger shipments mean lower per-unit broker costs. A $50,000 shipment and a $5,000 shipment often have similar broker fees.

Working with Customs Brokers

A good customs broker is worth their fee – especially for China-origin clothing, where classification, origin rules, and additional tariffs create complexity.

Look for a broker who:

• Specializes in textiles/apparel – clothing classification is nuanced and many generalist brokers get it wrong
• Has China experience – understands Section 301, Section 122, ChAFTA COs, and Chinese factory documentation
• Offers duty optimization reviews – not just filing, but proactively looking for classification improvements and preference programs
• Provides landed cost estimates before shipment

Typical broker fees: $100-$300 per customs entry, plus $50-$150 for document review. For regular importers (monthly shipments), negotiate a volume rate.

For smaller importers (under $50,000 annual import value), consider using a customs brokerage service integrated with your freight forwarder. Many forwarders offer combined freight + customs clearance packages that simplify the process.

FAQ: Import Duties and Taxes for Clothing

What is the total duty rate for clothing imported from China to the USA in 2026?

The effective rate combines base MFN (6-20%), Section 301 (7.5% or 25% depending on the product’s list), and Section 122 (10% global tariff). For most cotton apparel, the combined rate is approximately 32-34%. Section 122 expires July 24, 2026, if not renewed.

Do I need a Certificate of Origin to claim zero duty under ChAFTA?

Yes. Your Chinese manufacturer must provide a ChAFTA-specific Certificate of Origin issued by CCPIT or AQSIQ. A standard Certificate of Origin will not qualify for zero duty. This typically costs $30-$50 from the factory.

How is duty calculated – on FOB or CIF value?

Duty is calculated on the CIF value (Cost, Insurance, Freight) – the total value of goods when they arrive at the destination port. If you buy FOB, you must add freight and insurance to reach CIF. Most Chinese factories quote FOB, so add 10-15% for freight and insurance when estimating duties.

What is the de minimis threshold for clothing imports?

The US threshold is $800 per person per day, the EU is €150, and Australia is AU$1,000. Shipments under these values enter duty-free (VAT may still apply). Do not split commercial orders into multiple sub-threshold shipments – customs flags this pattern.

Can I get a refund on duties paid for Section 301 or Section 122 tariffs?

Section 301 duties are generally not refundable unless you qualify for a specific exclusion (check the current HTSUS exclusion list). Section 122 duties are similarly non-refundable unless the tariff expires and is not retroactively enforced. Duty drawback applies to goods that are later exported.

How do fabric blends affect HS code classification and duty rates?

Fabric composition determines the HS code. A 100% cotton garment and a 60% cotton / 40% polyester garment fall under different subheadings with different rates. Always provide your customs broker with a lab test report for blended fabrics. The classification follows the predominant material by weight.

Do I pay VAT or GST on top of import duties?

Yes. VAT (UK, EU) and GST (Australia) are calculated on the customs value (CIF + duty), not just the CIF value. This means you pay tax on top of duty – compound taxation that significantly increases total border charges. The UK offers Postponed VAT Accounting to reduce cash flow impact.