What duty applies to Bangladesh garments entering the EU?
Apparel from Bangladesh enters the European Union at zero duty under Everything But Arms, the EU's preferential scheme for least-developed countries. The standard most-favoured-nation rate for the same goods is 12 percent, so the preference is worth 12 percentage points of landed cost.
Everything But Arms grants duty-free, quota-free access for all products except arms and ammunition. It applies automatically to countries on the United Nations list of least-developed countries, without the reciprocal commitments a bilateral trade agreement would require.
For apparel the 12 percent MFN rate applies across most of chapters 61 and 62 — knitted and woven garments alike. On a consignment with a 200,000 dollar FOB value, the preference is worth 24,000 dollars against the same goods from a supplier paying full duty. That gap is why an origin failure is expensive rather than merely administrative. The market page for European importers sets out documents, route and timing for each shipment.
Which rules of origin must a garment satisfy?
Least-developed countries qualify under a single-transformation rule: the garment must be made from fabric, and the making must occur in the beneficiary country. Non-LDC beneficiaries face a double-transformation rule requiring the fabric to be woven or knitted there as well.
This is the most commercially significant detail in the whole scheme, and it is frequently misunderstood. Under single transformation, a Bangladeshi factory can import fabric from China, India or Turkey, cut and sew it in Bangladesh, and the finished garment still qualifies as Bangladeshi origin for EU preference purposes.
The practical consequences are large:
- Woven garments depend heavily on imported fabric, because domestic weaving capacity has never matched the country's cutting and sewing capacity. Single transformation is what makes woven exports viable at scale.
- Knit garments are made largely from domestically knitted fabric, so they satisfy the rule with margin to spare.
- Trims and accessories do not affect origin, provided the essential character of the garment comes from the making operation.
Cutting alone does not qualify. Nor does packing, labelling or simple assembly of pre-cut panels. The operation must amount to making up a garment from fabric.
What certification proves origin?
Origin is claimed through the Registered Exporter system. A registered Bangladeshi exporter issues a statement on origin on the commercial invoice, quoting its REX number. This replaced the paper Form A certificate that the scheme previously used.
The mechanics are straightforward once set up. The exporter registers with the competent authority in Bangladesh and receives a REX number. That number, together with a prescribed wording, is printed on the invoice or another commercial document. No separate certificate is issued and no stamp is required.
Three points decide whether a claim survives verification:
- The exporter must be registered at the time of shipment, and the number must be valid. An unregistered exporter cannot make a valid statement regardless of where the goods were made.
- The wording must be exact. The statement text is prescribed; a paraphrase is a defect.
- Records must support it. Fabric purchase invoices, production records and cutting reports must show that making up occurred in Bangladesh. EU customs can request verification years after clearance.
Verify the exporter's REX registration before the first shipment, and keep the origin statement with the entry documents for the retention period your member state requires. A certificate of origin issued by a chamber of commerce serves other purposes but does not substitute for the REX statement.
What changes when Bangladesh graduates from LDC status?
Bangladesh is scheduled to graduate from least-developed country status, which ends automatic Everything But Arms eligibility. The EU grants graduating countries a transition period during which EBA continues, after which the country moves to a standard GSP arrangement unless it qualifies for GSP+.
The commercial consequences fall in two stages. During the transition, nothing changes: duty stays at zero and single transformation continues to apply. After it, the outcome depends on which arrangement Bangladesh enters.
| Arrangement | Apparel duty | Origin rule |
|---|---|---|
| Everything But Arms (current) | 0% | Single transformation |
| GSP+ | 0% | Double transformation |
| Standard GSP | Reduced, not zero | Double transformation |
The origin rule matters more than the rate. A move to double transformation would require the fabric itself to be woven or knitted in Bangladesh, which changes the calculation for woven categories that rely on imported cloth. Knit categories, already largely supplied by domestic knitting, are far less exposed.
This is a live policy matter with dates and terms that shift. Before building a multi-year plan, confirm the current position with your own customs authority or trade adviser, and do not rely on a supplier's summary, including this one.
Where does EU import duty fit when sourcing from Bangladesh?
Duty-free access is the reason a European buyer looks at Bangladesh before other origins, and single transformation is the reason the country can offer woven categories at competitive prices. Both are conditions on the production, not properties of the country, so both are worth verifying at supplier selection rather than assuming.
We make up garments from fabric in Bangladesh across every category we produce, which is the operation the origin rule requires. Buyers supplying into the European Union confirm our REX registration and retain the origin statement with their entry records. Buyers comparing origins weigh the duty position alongside how Bangladesh compares on cost and lead time, because duty is one input in the total cost. The factory-side steps of the origin test are described on the manufacturing page covering our cut-and-sew capability.