Import Duties and Customs for Clothing: USA, UK, Australia, and Canada Guide

Import duties are one of the biggest surprise costs for new apparel importers. I've watched founders build beautiful business plans, negotiate great factory prices, and then discover that the duty rate on their product category adds 25-30% to their cost of goods — an amount that completely changes their margin calculation.

This guide covers the basics of import duties for clothing in the four major English-speaking markets: the USA, UK, Australia, and Canada. I'll give you the framework for looking up your specific rates, the key variables that affect what you pay, and the practical steps for minimizing your duty exposure legally.

Disclaimer: Tariff rates change, trade agreements evolve, and specific classifications require professional customs advice. Use this guide for planning purposes, but consult a licensed customs broker for your actual shipments.

Understanding HTS Codes: The Foundation

Every imported product is classified under a Harmonized Tariff Schedule (HTS) code — a standardized system used by most countries to categorize goods for tariff purposes. The first six digits of any HTS code are the same worldwide (the "harmonized" part). Country-specific digits follow.

For clothing, HTS codes fall mainly in Chapters 61 (knitted garments) and 62 (woven garments). The specific code for your product depends on:

Getting the HTS code right matters because duty rates vary significantly across codes. A men's cotton t-shirt has a different rate than a women's polyester athletic shirt. Using the wrong code can result in underpayment (which invites penalties) or overpayment (wasted money).

Finding your HTS code: Use the USITC Tariff Database for US imports (usitc.gov/tata/hts/), the UK Trade Tariff (trade-tariff.service.gov.uk), or the Australian Customs Tariff (abf.gov.au).

USA Import Duties on Clothing

The USA has some of the highest clothing tariff rates among developed countries, particularly for certain cotton and synthetic fiber categories.

**Common US apparel duty rates:**

Pakistan and the USA do not have a free trade agreement, so most Pakistani-manufactured apparel pays these standard (MFN — Most Favored Nation) rates.

**Additional fees on US imports:**

De minimis rule: Shipments with a value under $800 enter the USA duty-free. This is relevant for direct-to-consumer brands shipping individual orders internationally — orders under $800 face no duty. Commercial shipments above $800 pay the full duty rate.

UK Import Duties on Clothing (Post-Brexit)

Post-Brexit, the UK operates its own tariff schedule (the UK Global Tariff, or UKGT). Rates are generally similar to or slightly lower than EU rates.

**Common UK apparel duty rates:**

The UK has the UK-Pakistan Partnership for Development — while not a full FTA, Pakistan does benefit from the UK's Developing Countries Trading Scheme (DCTS), which offers preferential (reduced) tariff rates for many product categories. Check the UK Trade Tariff for specific DCTS rates applicable to Pakistani-origin goods.

VAT: UK imports also face 20% VAT on top of the duty. VAT is reclaimed by VAT-registered businesses but represents a cash flow cost at import.

Australia Import Duties on Clothing

Australia has progressively reduced its apparel tariffs and is more trade-open than the USA or UK.

**Current Australian apparel duty rates:**

Australia and Pakistan do not have an FTA, but Australia's general tariff rates are low enough that the lack of preferential treatment is less impactful than in the USA. The 5% rate on most standard apparel categories is relatively favorable.

GST: Australia's 10% GST applies to all imports over AUD $1,000. Like UK VAT, this is recoverable for registered businesses.

Canada Import Duties on Clothing

**Common Canadian apparel duty rates (MFN):**

Canada's rates are higher than Australia's but Pakistan benefits from Canada's General Preferential Tariff (GPT), which reduces rates for developing countries. Under GPT, many Pakistani apparel exports to Canada qualify for reduced rates. Check the Canada Border Services Agency tariff for GPT rates applicable to your products.

GST/HST: Canadian imports are subject to 5% federal GST (plus provincial HST depending on destination province), recoverable by registered businesses.

Practical Steps for Managing Duty Costs

Classify accurately from the start. Work with a customs broker to classify your products correctly before your first shipment. The investment in accurate classification (often $50-200 per new product code) prevents costly errors and potential penalties.

Research FTA and preferential programs. Even without full FTAs, your manufacturing origin may qualify for preferential programs (like UK DCTS or Canadian GPT for Pakistan-origin goods) that reduce your effective duty rate.

Consider first sale valuation. In the USA, you can sometimes use the "first sale" price (what you paid the manufacturer) as the customs value rather than the "last sale" price (a higher value if there are intermediaries). This is a legitimate method that reduces your duty base.

Factor duties into pricing from day one. Don't discover your duty bill when the container arrives. Know your expected duty rate before you place the production order so you can price your retail correctly.

For help understanding the full landed cost of apparel production, see our guide on how to calculate landed cost for imported apparel.

At Mughal Apparel, we work with brands importing to the USA, UK, Australia, and Canada regularly and can help you think through the cost picture. Get a free quote — starting at 50 pieces per style, 24-hour response time.