Quick answer: Clothing made in Pakistan enters the UK and the EU at 0% import duty in most cases, thanks to the UK’s Developing Countries Trading Scheme (DCTS) and the EU’s GSP+ scheme, as long as the goods meet the rules of origin and travel with a valid origin statement. Without that preference, both markets charge around 12% on most garments. The USA charges its normal duty rate for each garment (about 16.5% for cotton knit hoodies and T-shirts, up to 32% for many polyester knits) plus an extra 10% Section 301 duty that has applied to goods from Pakistan since 24 July 2026. Canada charges up to about 18% on most clothing, Australia around 5%, and New Zealand up to 10%. VAT, GST or sales tax is added on top in every market.
Duty is the line on a landed-cost sheet that surprises first-time brands the most. Two hoodies with the same price at the factory can cost very different amounts once they reach your warehouse, depending on the fabric, the country you ship to and the paperwork that travels with the cartons. We make custom sportswear, streetwear and teamwear in Sialkot for brands in the USA, UK, Europe, Canada, Australia and New Zealand, and we quote duties-paid (DDP) delivery every week. This guide sets out what each market charges on clothing from Pakistan in 2026, and how to keep the number as low as the rules allow.
This is a practical guide written from a manufacturer’s point of view, not legal or customs advice. Tariff rates change, especially in the USA. Always confirm the exact commodity code and rate with your customs broker before you place a bulk order.
Import Duty on Clothing from Pakistan at a Glance
The table below shows the typical position for finished garments (HS chapters 61 and 62) in late 2026. Rates vary by product, so treat these as a starting point for your costing, not a final figure.
| Market | Typical duty on clothing from Pakistan | Why | Tax added on top |
|---|---|---|---|
| United Kingdom | 0% on most garments | DCTS Enhanced Preferences (otherwise about 12% under the UK Global Tariff) | 20% VAT |
| European Union | 0% on most garments | GSP+ (otherwise about 12%) | VAT of the importing country, usually 19–25% |
| USA | Normal MFN rate + 10% | Section 301 duty on goods from Pakistan since 24 July 2026 | State sales tax when sold |
| Canada | Up to about 18% | Canada’s preference scheme for developing countries generally excludes apparel (DDP available) | GST/HST |
| Australia | Around 5% on most clothing | No free trade agreement with Pakistan | 10% GST |
| New Zealand | Up to 10% on most clothing | No free trade agreement with Pakistan | 15% GST |
United Kingdom: 0% Under the DCTS
Pakistan is in the Enhanced Preferences tier of the UK’s Developing Countries Trading Scheme. The UK government’s guidance says Enhanced Preferences give eligible countries 0% import tariffs on 92% of product lines, and garments from Pakistan are among the goods that normally qualify. The standard UK Global Tariff on most clothing is 12%, so the preference makes a real difference to your margin.
To claim 0%, two things have to be true:
- The garment must meet the DCTS rules of origin. For clothing, that means enough of the manufacturing happens in Pakistan, in practice cutting and sewing the garment here.
- The shipment needs a valid origin statement on the invoice from a registered exporter. Your customs broker uses it to claim the preference when the goods are entered.
VAT at 20% is still charged on import, on top of any duty. If your business is VAT-registered, you can normally reclaim it. For more on selling into Britain, see our page for UK clothing brands.
European Union: 0% Under GSP+
Pakistan has held GSP+ status with the EU since 2014. Under GSP+, the EU removes import duty on around two-thirds of tariff lines for Pakistani goods, including apparel. That is one of the main reasons European brands source sportswear and streetwear from Sialkot. Without the preference, most garments pay about 12%.
As with the UK, the preference only applies when the garment meets the EU’s origin rules and the exporter provides a statement on origin under the EU’s REX system (registered exporter). Ask your manufacturer to confirm they are REX-registered before the first shipment.
One thing to watch: the current EU GSP regulation runs until the end of 2027, and the EU is reviewing how Pakistan meets the 27 international conventions that GSP+ depends on. Duty-free access continues today, but European buyers placing long-term programmes should keep an eye on the review. More detail is on our page for European clothing brands, and country pages for Germany, the Netherlands and Ireland.
USA: Normal Duty Plus 10% Section 301
The US position changed several times in 2025 and 2026, which is why many brands are confused about what they will pay. Here is where things stand in late 2026:
- Normal (MFN) duty still applies. Pakistan has no free trade agreement with the USA, and the US GSP programme expired at the end of 2020, so every garment pays its normal Column 1 rate. Cotton knit sweatshirts and hoodies under HTS 6110.20 and cotton T-shirts under 6109.10 are typically 16.5%. Many synthetic knit tops under 6110.30 are 32%.
- A 10% Section 301 duty is added on top. The US Trade Representative imposed an additional 10% duty on goods from Pakistan from 24 July 2026, as part of a forced-labour action covering 60 economies. Textiles and apparel are not on the exemption list.
- The 19% “reciprocal” tariff no longer applies. The US Supreme Court ruled on 20 February 2026 that the IEEPA law did not authorise those tariffs. Collection stopped for entries from 24 February 2026. Importers who paid them may be able to claim refunds through US Customs.
- The temporary 10% Section 122 surcharge has ended. It applied from 24 February to 24 July 2026 and was then replaced by the Section 301 duty.
- The $800 de minimis exemption is suspended for most commercial shipments, so even small parcels shipped direct to US customers now need a customs entry and pay duty.
In practice, a cotton fleece hoodie now pays about 26.5% (16.5% + 10%), and a polyester knit training top can pay about 42% (32% + 10%), plus a small merchandise processing fee and, for sea freight, a harbour maintenance fee. Fabric choice matters more in the US than anywhere else: switching a hoodie from polyester to a cotton-rich fleece can cut the duty bill by a third. Our guide to polyester vs cotton for sportswear covers the trade-offs, and our page for US clothing brands explains how we ship.
Canada: Up to About 18%
Canada has a General Preferential Tariff for developing countries, but it generally excludes apparel, so most clothing from Pakistan pays Canada’s normal MFN rate. For many garments that is up to about 18%. GST or HST is added on import. DDP delivery to Canada is available, so duty, GST/HST and customs clearance can be included in your price per piece. See our page for Canadian clothing brands.
Australia: Around 5%
Australia charges a general customs duty of around 5% on most clothing, and Pakistan has no free trade agreement with Australia, so that is the usual rate. GST of 10% is added on top. Shipments valued above A$1,000 need a formal import declaration. More on our page for Australian clothing brands.
New Zealand: Up to 10%
New Zealand charges up to 10% on most clothing, with some lines lower, and adds 15% GST. Pakistan has no free trade agreement with New Zealand. See our page for New Zealand clothing brands.
A Worked Example: 500 Cotton Hoodies
Here is a simple comparison for 500 cotton fleece hoodies with a factory price of US$12 each, so US$6,000 of goods. It uses the typical rates above, before VAT or GST, freight and broker fees. Customs value rules also differ: the UK and EU charge duty on the value including freight and insurance, while the USA, Canada, Australia and New Zealand broadly use the value of the goods at export.
| Destination | Duty rate used | Approximate duty |
|---|---|---|
| UK (with DCTS origin statement) | 0% | US$0 |
| EU (with GSP+ statement on origin) | 0% | US$0 |
| USA | 16.5% + 10% | about US$1,590 |
| Canada | about 18% | about US$1,080 |
| Australia | about 5% | about US$300 |
| New Zealand | about 10% | about US$600 |
The same order shipped to the UK without a valid origin statement would pay about 12%, roughly US$720 or more once freight is included in the value. One missing line on an invoice can cost more than the freight.
How to Keep Duty as Low as the Rules Allow
- Get the commodity code right before production. The code depends on fibre content, knit or woven construction, gender and garment type. A hoodie that is 60% cotton is classed differently from one that is 60% polyester. Agree the code with your broker at the tech pack stage.
- Use the preference you are entitled to. For the UK and EU, make sure every shipment carries a valid origin statement from a registered exporter.
- Think about fabric, especially for the US. Cotton-rich garments usually carry lower US duty than polyester ones. That has to be balanced against performance and price.
- Ship in bulk rather than parcels. With US de minimis suspended, one consolidated shipment is usually cheaper to clear than hundreds of small parcels.
- Ask for a DDP quote. With DDP (Delivered Duty Paid), duty, clearance and delivery are built into one price per piece, so there are no surprises when the goods land.
- Label correctly. Wrong or missing labels can delay clearance. Our clothing label guide covers each market.
How Pakistan Compares
Duty is one reason European and British brands look at Pakistan alongside Bangladesh and China. For a fuller comparison of cost, quality, MOQ and lead times, read clothing manufacturers in Pakistan vs China vs Bangladesh, and for price per piece see our custom clothing price guide.
Frequently Asked Questions
Is clothing from Pakistan duty-free in the UK?
In most cases, yes. Pakistan is in the Enhanced Preferences tier of the UK’s Developing Countries Trading Scheme, which gives 0% duty on most garments that meet the rules of origin and carry a valid origin statement. VAT at 20% still applies.
Is clothing from Pakistan duty-free in the EU?
Usually, yes. Under the EU’s GSP+ scheme, apparel from Pakistan enters at 0% when it meets the origin rules and the exporter provides a REX statement on origin. Import VAT still applies in the country of import.
What is the US tariff on clothing from Pakistan in 2026?
Since 24 July 2026, clothing from Pakistan pays its normal US duty rate plus an additional 10% Section 301 duty. For a cotton hoodie that is typically about 26.5% in total. The earlier 19% reciprocal tariff stopped being collected in February 2026 after the Supreme Court ruling.
Can I get a refund of the 19% US tariff I paid in 2025?
Possibly. After the Supreme Court ruled that the IEEPA tariffs were not authorised, US Customs set up a refund process for importers of record. Ask your customs broker to check your entries.
Do I pay duty on small parcels shipped direct to US customers?
In most cases, yes. The US has suspended the $800 de minimis exemption for most commercial shipments, so even low-value parcels need a customs entry and pay duty.
Does Pexton Apparel provide the origin paperwork?
We prepare the commercial invoice and packing list for every export shipment and work with your customs broker on the origin documents your market needs. We can also quote DDP so duty and clearance are included in your price. Tell us your destination when you request a quote.
Get a Landed-Cost Quote
Send us your design, quantity and destination country, and we will come back with a quote that shows the factory price and, if you want it, a DDP price per piece with duty included. Most quotes go out within 24 hours. Request a free quote or message us on WhatsApp.