As of 7 October 2026, women’s garments and scarves imported into South Korea from India qualify for 0% customs duty under the India–Korea Comprehensive Economic Partnership Agreement (CEPA), compared with standard tariffs ranging from 8% to 13%. South Korea levies a 10% value-added tax (VAT) on imported goods, which registered commercial importers can deduct as input tax on their periodic tax returns. To secure the preferential 0% rate, shipments must be supported by a compliant Certificate of Origin and adhere to established consignment rules.
Tariff elimination under the India–Korea CEPA
The India–Korea Comprehensive Economic Partnership Agreement (CEPA) has been in force since 1 January 2010. Without preferential trade agreements, South Korea applies Most Favoured Nation customs duties between 8% and 13% on imported apparel. Prior to tariff concessions under the agreement, base duty rates stood at 13% for garments and 8% for woven shawls and scarves.
Under Korea’s Schedule of Tariff Concessions in Annex 2-A of the CEPA, every requested line for women’s garments and scarves was placed into staging category E-5 or E-8. None of these products were excluded, treated as sensitive, or subjected to partial duty reductions only. Because the multi-year staging periods under categories E-5 and E-8 have concluded, qualifying Indian-origin garments and accessories are duty-free (0%) in 2026.
Standard versus preferential duty rates for Indian garments
Importers bringing women’s apparel from India into South Korea encounter two distinct tariff treatments: the standard duty rate applied to general imports, and the 0% preferential rate under CEPA. Access to the zero-tariff rate depends on presenting valid proof of Indian origin at customs clearance.
Standard Korean tariffs charge 13% on woven and knitted apparel—such as dresses, kaftans, skirts, and blouses—as well as knitted scarves. Woven scarves, stoles, and shawls carry an 8% standard tariff. Under the CEPA rules, all these product lines enter South Korea at 0% customs duty when accompanied by proper documentation.
| Garment Category | Construction and Fibre | Standard Duty | CEPA Preferential Duty |
|---|---|---|---|
| Dresses | Cotton, viscose / rayon, polyester, silk, or linen (woven) | 13% | 0% |
| Dresses | Cotton, viscose / rayon, or polyester (knitted) | 13% | 0% |
| Kaftans | Cotton, viscose / rayon, polyester, silk, or linen (woven) | 13% | 0% |
| Kaftans | Loose robe or cover-up cut in cotton, viscose, polyester, silk, or linen (woven) | 13% | 0% |
| Kaftans | Cotton, viscose / rayon, or polyester (knitted) | 13% | 0% |
| Skirts | Cotton, viscose / rayon, polyester, silk, or linen (woven) | 13% | 0% |
| Skirts | Cotton, viscose / rayon, or polyester (knitted) | 13% | 0% |
| Tops and blouses | Cotton, viscose / rayon, polyester, silk, or linen (woven) | 13% | 0% |
| Tops and blouses | Cotton, viscose / rayon, or polyester (knitted) | 13% | 0% |
| Scarves and stoles | Cotton, viscose / rayon, polyester, silk, wool, or linen (woven) | 8% | 0% |
| Scarves and stoles | Cotton or wool (knitted) | 13% | 0% |
Origin criteria and documentation requirements
To qualify for the 0% CEPA tariff, goods must meet the origin criteria set out in the agreement. Garments must comply with the relevant product-specific rule or demonstrate a regional value content of at least 35% of the free-on-board (FOB) price where regional value content applies. If you are uncertain about how origin thresholds apply to your product composition, check with your customs broker.
Importers must present a Certificate of Origin issued by India’s designated issuing authority under CEPA Annex 4-A, drawn up in the format set out in Annex 4-B, to Korean Customs when claiming preferential tariff treatment. The Certificate of Origin remains valid for 12 months from its date of issuance, and the formal claim for preferential tariff treatment must be lodged with Korean Customs within that 12-month window.
Additionally, consignments must be shipped directly between India and South Korea or comply strictly with CEPA transhipment rules. Goods transiting through third countries must remain under customs supervision without undergoing operations beyond unloading, reloading, or measures necessary to preserve their condition.
South Korean import VAT and tax base calculation
Beyond customs tariffs, South Korea levies a standard 10% value-added tax on commercial imports. Under Article 29 of the Value-Added Tax Act, the tax base for import VAT comprises the customs value of the goods, applicable customs duties, and any special excise-type taxes.
The dutiable customs value determined by Korean Customs is calculated on a CIF basis, which already incorporates the purchase cost of the garments, international freight, and marine insurance. When goods clear customs at the preferential 0% CEPA rate, no customs duty is added to the calculation, meaning the VAT tax base corresponds to the CIF value provided no excise-type taxes apply.
Upon customs clearance, a VAT-registered business importer receives an import tax invoice issued by Korean Customs. The importer can deduct this import VAT as input tax on its periodic VAT return, ensuring the tax does not become an unrecoverable operational cost.
Check your own garment
To review specific duty rates and import charges for shipments arriving in South Korea, use our duty calculation tool:
We manufacture women’s dresses, kaftans, skirts, and scarves for international brands and retailers, so Talk to us about sourcing your collections with compliant origin documentation.
Sources
- India-Korea CEPA, Annex 2-A, Korea’s Schedule of Tariff Concessions (HS2002 numbering)
- Value-Added Tax Act Art. 29 (tax base on imports)
- Korea Customs Service FTA Portal – Information on tariff rates
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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