To claim preferential European Union Generalised Scheme of Preferences (GSP) duty rates on garment shipments from India exceeding €6,000, European buyers need to see a valid statement on origin bearing the exporter’s Registered Exporter (REX) number on the commercial invoice or related commercial documentation. As of 31 October 2026, Indian apparel retains preferential tariff treatment under EU GSP rules, reducing standard customs duties of 12% to 9.6% on women’s dresses, kaftans, and skirts, and from 8% to 6.4% on woven scarves. Without this statement on origin issued by a REX-registered exporter, customs brokers cannot apply preferential tariffs, and standard third-country customs duty applies upon arrival.
What the REX statement on origin requires
The EU Registered Exporter system is a system of self-certification of origin. Under GSP rules, traditional government-issued Form A certificates of origin are no longer accepted; their acceptance ceased after 30 June 2020. Preferential treatment now relies entirely on a statement on origin issued directly by the exporter.
For commercial consignments with a total value exceeding €6,000, the Indian exporter must be registered in the REX system and include their REX registration number within the statement. If a consignment has a total value of €6,000 or less, any exporter may make the statement on origin without holding a REX registration. For small packages sent to private individuals, no proof of origin is required when the total value does not exceed €500, or €1,200 for goods contained in personal luggage.
The buyer’s customs broker must receive the statement on origin to claim the lower GSP tariff at clearance. The statement must appear on an invoice, a delivery note, a packing list, or any other commercial document that clearly identifies both the exporter and the consignment. The exact text of the declaration is established in Annex 22-07 of Commission Implementing Regulation (EU) 2015/2447. Once made, a statement on origin remains valid for 12 months from the date of issue.
GSP preferential duties versus standard tariffs
India is a standard beneficiary of the EU GSP scheme. Under Implementing Regulation (EU) 2025/1909, the EU suspended GSP preferences for Indian raw textiles for the 2026–2028 list, but did not suspend preferences for apparel. As a result, Indian-made garments continue to benefit from preferential tariff rates upon import into the EU. A renewed GSP regulation, Regulation (EU) 2026/1395, applies from 1 January 2027 and will establish a fresh list of suspended sectors once published.
The following table illustrates the tariff differences between standard third-country duties and preferential GSP rates when a valid REX statement on origin is presented for import into Germany, along with the applicable import VAT.
| Garment Description | Standard Duty | EU GSP Preferential Duty | Germany Import VAT |
|---|---|---|---|
| Women’s dresses (cotton, viscose/rayon, polyester, silk, or linen; woven or knitted) | 12% | 9.6% | 19% |
| Women’s kaftans (cotton, viscose/rayon, polyester, silk, or linen; woven or knitted) | 12% | 9.6% | 19% |
| Women’s skirts (cotton, viscose/rayon, polyester, silk, or linen; woven or knitted) | 12% | 9.6% | 19% |
| Women’s tops and blouses (cotton, viscose/rayon, polyester, silk, or linen; woven or knitted) | 12% | 9.6% | 19% |
| Scarves and stoles (cotton, viscose/rayon, polyester, silk, wool, or linen; woven) | 8% | 6.4% | 19% |
| Scarves and stoles (cotton or wool; knitted) | 12% | 9.6% | 19% |
| Bandanas (cotton, polyester, or silk) | 10% | 8% | 19% |
| Cotton canvas or polyester tote and shopping bags | 2.7% | 0% | 19% |
| Cotton canvas or polyester handbags | 3.7% | 0% | 19% |
Clothing imported into Germany carries standard 19% import VAT, calculated on the customs value plus duty. An EU VAT-registered business deducts import VAT as input tax on its periodic VAT return. Under Article 211 of the VAT Directive, certain EU member states allow businesses to account for import VAT directly on their return rather than paying it at the border, such as the Netherlands with an Article 23 licence or Belgium with an ET14000 authorisation; Germany provides a customs deferment account.
Regarding future trade arrangements, negotiations for an EU–India free trade agreement concluded on 27 January 2026. The European Commission proposed the signing decision to the Council on 11 September 2026. However, the agreement is not yet signed and is not in force. Before it can take effect, it requires a Council decision, official signature, European Parliament consent, and ratification by both sides. No official entry-into-force date has been announced. While the draft schedule eliminates duty on all garment lines to 0% once in force, garments currently remain subject to GSP rates via the REX system.
Rules of origin and transport compliance
To qualify for GSP preference, garments must satisfy EU rules of origin by being wholly obtained or undergoing sufficient working or processing in India. Duty drawback, which refunds duties paid on non-originating raw materials used in production, is permitted under the EU GSP scheme.
Exporters may also take advantage of origin cumulation. Bilateral cumulation permits materials originating in the EU to count as originating in India when used in apparel production. Regional cumulation is available within Group III, which includes Bangladesh, Bhutan, India, Nepal, Pakistan, and Sri Lanka, subject to specific conditions. Materials originating in Norway, Switzerland, and Türkiye may also be counted as originating under specific cumulation arrangements.
Importers must also ensure compliance with the non-alteration rule. Originating apparel must be transported directly from India to the EU without undergoing further processing in a transit country. Operations such as unloading, reloading, storage, splitting consignments, or affixing marks and labels may occur in a third country only under customs supervision. Customs authorities may request transport documentation, such as bills of lading, to confirm compliance. Verification of origin is conducted through administrative cooperation between EU customs authorities and the authorities in India.
Check your own garment
Use our duty calculator to verify import duty rates and estimated customs charges for apparel imported into Germany:
We manufacture women’s dresses, kaftans, skirts and scarves for European fashion brands while ensuring complete REX documentation on every shipment; Talk to us to discuss your upcoming collection.
Sources
Indicative information from official sources, written 31 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.
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