As of 24 October 2026, Indian garment exports to the European Union qualify for preferential EU Generalised Scheme of Preferences (GSP) duty rates, lowering the standard 12% third-country tariff to 9.6% on most apparel. Although a renewed GSP framework under Regulation (EU) 2026/1395 applies from 1 January 2027, Indian clothing retains these lower rates until the European Union publishes a fresh list of product suspensions. To secure these preferences, EU importers must ensure their Indian supplier is registered in the Registered Exporter (REX) system and provides a valid invoice statement on origin.
Current EU GSP duty rates for Indian garments
Garments imported into the EU from India carry standard duties between 8% and 12%, but qualify for a reduced range of 6.4% to 9.6% under the EU GSP agreement. India is a standard GSP beneficiary country. Under Implementing Regulation (EU) 2025/1909, the European Union suspended GSP preferences for Indian textiles for the 2026–2028 cycle, but did not suspend apparel. Consequently, Indian garments continue to enter the EU at preferential tariff rates.
Woven and knitted dresses manufactured from cotton, viscose or rayon, polyester, silk, or linen incur a standard 12% duty, which drops to 9.6% with proof of Indian origin. The same 9.6% preferential rate applies to skirts, tops, blouses, and kaftans—including loose robe and cover-up styles—across woven and knitted cotton, viscose, polyester, silk, and linen.
Accessory duties depend on fabric construction and fibre. Woven scarves and stoles in cotton, viscose, polyester, silk, wool, or linen carry an 8% standard tariff, reduced to 6.4% under GSP. Knitted scarves and stoles in cotton or wool face a 12% standard duty, reduced to 9.6%. Bandanas made of cotton, polyester, or containing 70% or more silk carry a 10% standard duty, falling to 8% under preference. Cotton terry and flat-woven towels pay 9.6% instead of 12%. Fabric bags, such as cotton canvas, jute, or polyester tote bags and shoulder bags, carry standard duties of 2.7% or 3.7%, but enter duty-free at 0% with proof of Indian origin.
| Garment and Fibre Description | Standard Duty | EU GSP Duty Rate |
|---|---|---|
| Dresses (cotton, viscose, polyester, silk, linen; woven or knitted) | 12% | 9.6% |
| Kaftans (cotton, viscose, polyester, silk, linen; woven or knitted) | 12% | 9.6% |
| Skirts (cotton, viscose, polyester, silk, linen; woven or knitted) | 12% | 9.6% |
| Tops and blouses (cotton, viscose, polyester, silk, linen; woven or knitted) | 12% | 9.6% |
| Scarves and stoles (cotton, viscose, polyester, silk, wool, linen; woven) | 8% | 6.4% |
| Scarves and stoles (cotton, wool; knitted) | 12% | 9.6% |
| Bandanas (cotton, polyester, silk 70% or more; woven) | 10% | 8% |
| Towels (cotton terry or flat-woven fouta) | 12% | 9.6% |
| Fabric bags (cotton canvas, jute, polyester; tote or shoulder bag) | 2.7%–3.7% | 0% |
What changes under the renewed 2027 regulation
The EU’s current GSP framework under Regulation (EU) 978/2012 has applied since 1 January 2014, and was extended in November 2023 until December 2027 pending review. A renewed GSP framework, Regulation (EU) 2026/1395, applies from 1 January 2027. Under this regulation, the European Commission must establish a fresh list of suspended product sections. Until that list is published, Indian apparel remains eligible for existing GSP duty reductions. We will update this page when that list is published; if you need certainty on future shipments, check with your customs broker.
Importers should also follow progress on the bilateral EU–India trade agreement. The EU and India concluded negotiations on 27 January 2026, and on 11 September 2026 the European Commission proposed the signing decision to the Council. Next steps require a Council decision, signature, European Parliament consent, and ratification by both sides. The agreement is not yet signed and is not in force; no official entry-into-force date has been announced, and zero-duty rates cannot apply before formal ratification.
In late October 2026, reports cited Indian Trade Minister Piyush Goyal stating that the agreement could be signed by December 2026, with rollout expected by March–April 2027, or operational in January–March 2027 within 4 to 5 months. German ministerial reports noted that the pact is expected to save €4 billion a year in customs duties. Once in force, the draft EU schedule eliminates duty to 0% across all garment lines. However, the draft origin rule requires fabric to be woven or knitted in India or the EU; garments sewn from imported fabric would not qualify for zero duty and would remain on prevailing tariff rates.
REX origin rules and import VAT compliance
To claim preferential GSP rates at EU customs, shipments must satisfy EU origin procedures. Goods must be wholly obtained in India or undergo sufficient processing under product-specific rules. Duty drawback is permitted under GSP, allowing refunds on duties paid on imported non-originating materials used in manufacturing. The scheme permits bilateral cumulation with EU materials, regional cumulation with Group III countries (Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka), and cumulation with Norway, Switzerland, and Türkiye. Under the non-alteration rule, goods must be transported directly without processing in intermediate countries, except for operations like marking, labelling, or storage under customs supervision.
Claims for preferential duty require a valid statement on origin under the Registered Exporter (REX) system. Since 30 June 2020, Form A origin certificates are no longer accepted for EU imports. The Indian exporter must be registered in REX and must provide the statement on origin directly on the commercial invoice, packing list, or delivery note. This statement remains valid for 12 months from the date it was made. Exporters not registered in REX may only issue statements for consignments up to €6,000, while consignments under €500 for small packages require no proof.
In addition to customs duty, EU customs authorities collect import VAT, calculated on the customs value plus duty. Garments imported into Germany incur a 19% import VAT, while France charges 20% import VAT. For EU VAT-registered businesses, import VAT is deductible as input tax on their VAT return. Member states also permit accounting for import VAT directly on the VAT return under Article 211 of the VAT Directive (such as the Netherlands’ Article 23 licence and Belgium’s ET14000 procedure), while Germany offers a customs deferment account.
Check your own garment
To check specific tariff rates and import taxes for your upcoming shipments, consult our country-specific duty calculators:
We manufacture women’s dresses, kaftans, skirts and scarves for European fashion brands and manage all REX origin documentation directly from our factory in India; Talk to us about sampling and production for your upcoming collections.
Sources
Indicative information from official sources, written 24 October 2026. Rates verified on against the official tariffs. It is not a customs ruling; confirm with your customs broker before you rely on it.
Developing a womenswear range? See how we work as a ladies garments manufacturer in India.
View the B2B lookbooks → a glimpse of our latest collections. Request the full range: more designs on request.
