As of 9 October 2026, the free trade agreement between the European Union and India is not yet in force, meaning current import duties continue to apply to Indian apparel shipments. While it was reported on 8 October 2026 that the agreement is expected to be signed in December and take effect by mid-2027, no official entry-into-force date has been announced. European importers of women’s liboslar, kaftanlar, skirts and scarves currently pay standard EU Generalised Scheme of Preferences (GSP) duty rates between 6.4% va 9.6%.
Reported agreement timeline and required legal steps
The European Commission and India originally opened negotiations in 2007, suspended talks in 2013, and relaunched discussions in 2022. Formal negotiations concluded on 27 Yanvar 2026. On 11 sentyabr 2026, the European Commission submitted a proposal for a Council Decision on the signing of the agreement (COM(2026) 483). Recent press coverage has reported potential implementation dates. On 5 October 2026, it was reported by The Tribune (ANI) that France’s minister for European affairs, Benjamin Haddad, stated the deal could remove €4 billion a year in tariffs and double EU–India trade; this €4 billion matches the European Commission’s estimate of annual duty savings for EU exporters to India. On 8 October 2026, it was reported by the Hindustan Times that EU ambassador Paquet stated the agreement is to be signed in December, with the trade deal expected to take effect by mid-2027.
Because these projections are reported in the press rather than enacted in law, several institutional steps must occur before any tariff changes take effect. The Council of the European Union must adopt the decision to sign, followed by the formal signing of the text by the EU and India. The European Parliament must then give its consent, the Council must adopt a decision concluding the agreement, and India must complete its domestic ratification. The agreement cannot apply before signature, European Parliament consent, and ratification by both sides. Until these procedures are finished, no official date for entry into force exists.
Current import duties and taxes on garments in Germany
Duty rates on garments imported from India into Germany were verified on 8 October 2026. Third-country standard rates range from 8% uchun 12%, while EU GSP rates range from 6.4% uchun 9.6%. India is a standard GSP beneficiary. Under Implementing Regulation (EI) 2025/1909, the EU suspended GSP preferences for Indian textiles for 2026–2028, but did not suspend preferences for apparel. Natijada, Indian garments continue to receive preferential GSP rates: 9.6% instead of 12% on most apparel items, va 6.4% instead of 8% on woven scarves. A renewed GSP regulation, (EI) 2026/1395, applies from 1 Yanvar 2027 and will require a fresh list of suspended product sections; if you are uncertain how future lists affect your products, check with your customs broker.
Garments imported into Germany are also subject to Germany’s standard 19% import VAT, which is charged on the customs value plus duty. An EU VAT-registered business deducts import VAT as input tax on its VAT return. Several member states permit businesses to account for import VAT on the return instead of paying at the border under Article 211 of the VAT Directive, such as the Netherlands under an Article 23 licence or Belgium through an ET14000 authorisation; Germany offers a customs deferment account.
The table below outlines current duty rates, expected trade deal rates, and German import VAT across major apparel categories.
| Garment description and fibre | Standard duty | Current EU GSP duty | Expected FTA duty (not in force) | Germany import VAT |
|---|---|---|---|---|
| Ko'ylaklar (paxta, viskoza / rayon, poliester, ipak, or linen; to'qilgan yoki trikotaj) | 12% | 9.6% | 0% | 19% |
| Kaftanlar (paxta, viskoza / rayon, poliester, ipak, or linen; to'qilgan yoki trikotaj; loose robe/cover-up cut) | 12% | 9.6% | 0% | 19% |
| Yubkalar (paxta, viskoza / rayon, poliester, ipak, or linen; to'qilgan yoki trikotaj) | 12% | 9.6% | 0% | 19% |
| Tops and blouses (paxta, viskoza / rayon, poliester, ipak, or linen; to'qilgan yoki trikotaj) | 12% | 9.6% | 0% | 19% |
| Scarves and stoles (paxta, viskoza / rayon, poliester, ipak, jun, or linen; to'qilgan) | 8% | 6.4% | 0% | 19% |
| Scarves and stoles (cotton or wool; trikotaj) | 12% | 9.6% | 0% | 19% |
Rules of origin under GSP compared with the draft agreement
To access the GSP rate of 9.6% on garments or 6.4% on woven scarves today, the Indian exporter must be registered in the EU Registered Exporter (REX) system and provide a statement on origin on the commercial invoice. The importer’s customs broker uses this declaration to claim the preference at customs clearance.
Under the draft EU schedule for the forthcoming trade agreement, duties are slated to drop to 0% across every garment line from the day the agreement enters into force. Biroq, qualifying under the future agreement requires meeting specific origin rules. The draft origin rule for woven garments requires the fabric to be woven or knitted in India or the EU. This rule is stricter than the UK origin rule, meaning garments sewn in India from imported fabric will not qualify for 0% duty and would remain on standard rates. If your fabric blends or supply chains involve third-country materials, check with your customs broker.
Check your own garment
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We manufacture women’s dresses, kaftanlar, skirts and scarves in India, and you can Talk to us about production and compliant export origin documentation.
Sources
- EI–India trade agreement — status and texts
- Proposal for a Council Decision on the signing of the EU–India Free Trade Agreement, COM(2026) 483
Indicative information from official sources, written 9 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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